Federal Reserve Bulletin, 1969-09

FEDERAL RESERVE BULLETIN SEPTEMBER 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 12 months. The Bulletin may be obtained from the Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D. C. 20551, and remittance should be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN NUMBER 9 □ VOLUME 55 □ SEPTEMBER 1969 CONTENTS 683 Recent Price Developments 697 Treasury and Federal Reserve Foreign Exchange Operations 719 Statement to Congress 727 Record of Policy Actions of the Federal Open Market Committee 736 Law Department 762 Announcements 763 National Summary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 4 U.S. Statistics A 72 International Statistics A 96 Board of Governors and Staff A 97 Open Market Committee and Staff; Federal Advisory Council A 98 Federal Reserve Banks and Branches A 99 Federal Reserve Board Publications A 103 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony COMMITTEE J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Recent Price Developments PRICE INCREASES have been large and widespread this year. During the first 7 months of 1969, consumer prices rose at a faster rate than they had in 1968, or indeed, faster than in any period of similar length since 1951. Wholesale prices have also advanced at a fast pace since last fall—reflecting large gains for both agricultural and industrial products. Since midyear, how­ ever, prices of farm products have declined. With consumer prices rising rapidly and demands for man­ power intense, increases in wages have exceeded those in pro­ ductivity, and unit labor costs have continued to move upward. Because of a rapid expansion in expenditures for capital equip­ ment by business and a high rate of construction activity, there has been a sharp rise in industrial production, and requirements for industrial materials have been large. Production in Europe and Japan has also been expanding. As a result, record demands for commodities traded in world markets have added to price pressures. An acceleration in prices of agricultural commodities has con­ tributed more than usual to inflationary developments this year; food supplies have failed to keep pace with rising consumer de­ mand, particularly for meat, with the result that the rise in food prices at retail has been very sharp. In addition, prices of serv­ ices and of nonfood commodities have been rising somewhat more rapidly this year than in 1968. ECONOMIC SETTING In mid-1968 restrictive fiscal policies were introduced to supple­ ment monetary policy, hitherto the major restraint employed to contain inflation since the acceleration of the Vietnam conflict in Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 1965. In the third quarter, despite the impact of the surtax on incomes, consumer expenditures increased at an unusually high rate, helping to maintain an ebullient tone in the economy. However, the spurt in consumer spending subsided in the fall, and retail sales showed little further growth. Moreover, a leveling in Federal spending for goods and services in the fiscal year 1969 limited the expansion in final demand. By the second half of that year, the previous substantial Federal deficit was being replaced by a substantial surplus. Nevertheless, total demand and produc­ tion remained strong, fed by a renewed surge of spending for plant and equipment in the latter part of calendar year 1968. ^ REAL GNP grows more slowly but 1 current-dollar GNP continues to rise rapidly RATIO SCALE, 1964=100 Real GNP = constant dollar GNP, GNP: Dept, of Commerce data; latest figures, Q2 1969. Industrial production: FRB data; latest figures, Q3 1969, estimated. Consequently, monetary measures were applied more vigor­ ously in the winter and spring. As credit stringencies became more severe, the volume of funds available for mortgages dropped, causing a decline in housing starts from the near-record levels early this year, and municipal borrowing was slowed. Expenditures for plant and equipment, on the other hand, con­ tinued to mount rapidly during the first half of this year. As the bite of fiscal and monetary policy increased over the past year, real economic growth dropped sharply from an annual rate of more than 6.5 per cent in the first half of 1968 to 3.2 per cent in the fourth quarter, and then to 2.0 per cent in the second quarter of this year. However, the gross national product as Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 685 measured in current dollars continued to rise rapidly, owing to the relatively high rate of advance in prices. Slackening in the real growth rate this year was not accom­ panied by a lessening in labor and other cost pressures. Gains in employment continued large, and little slack developed in the labor market although hiring activity lessened somewhat after midyear. In the first 8 months of the year employment rose al­ most as fast as the labor supply, and unemployment in August was at a rate of 3.5 per cent, only slightly above the 3.3 per cent rate at the end of last year. As the job market continued tight and the cost of living advanced rapidly, wage increases continued to be large. Growth in employment in the first half of 1969 was large relative to that in total output, and productivity in the private economy as a whole failed to rise. On the other hand, compensa­ tion per manhour rose even faster than in preceding years. Thus, unit labor costs in the private economy have been rising at a substantially faster rate. However, in the industrial sector, where increases in output continued large through midyear, productivity gains continued strong and unit labor costs rose less. Over-all, demand by producers and consumers was sufficient to permit passing most of the rising costs on in the form of higher prices. Profit margins had been well maintained by corporate business in 1968, and profits had risen on higher volume. But in the first quarter of this year profits leveled off and then began to drop. PRICE INCREASES Of the direct measures of price developments, the three most IN THE GNP widely watched are the GNP implicit deflator, the wholesale price index, and the consumer price index. Although each one measures different aspects of the inflation, all three show that price pressures remain intense. The rise in the implicit deflator has speeded up—from an annual rate of 4.2 per cent in the second half of 1968 to 5 per cent in the first half of 1969. In the private sector, prices for fixed capital investment have accelerated and have been increasing even faster than those for consumer goods and services. Prices of producers’ equipment have responded in part to the continued strength of the capital goods boom, while costs of both residen­ tial and nonresidential construction, reflecting recent record rates of activity, have outpaced the rise in prices of either equipment or consumer goods. Costs to the government have also been ris­ ing, reflecting in large part the fact that pay increases for both Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN a SEPTEMBER 1969 PRICES for major sectors of GNP continue up 1965 1967 1969 Implicit deflator for GNP and selected major sectors. Dept, of Commerce data. Latest figures, Q2 1969. Federal and State and local government employees—which had lagged behind those in private employment for several years— have recently been larger. Costs of public works and defense products have also been rising rapidly. WHOLESALE PRICES Prices of both agricultural and industrial commodities at whole­ sale have advanced at the rate of almost 5 per cent annually this year. The rise through August exceeded that in the same 8month period in 1968 and was faster than during the inflationary periods in 1965 and 1966. Recently, however, the advance has slowed as prices of foodstuffs and of other agricultural com­ modities leveled off in July and dropped in August. Industrial commodity prices continued to rise. Industrial commodities. For analytical purposes, industrial commodities are classified into materials (with a weight of 59 per cent), producers’ equipment (13 per cent), and consumer nonfood products (28 per cent). Despite the greater proportion of labor costs in the finished products, price increases for ma­ terials over the last year have outstripped those for products— reflecting the importance of continued strong demand and con­ straints on supply. Prices of almost all materials have shown an upward trend, but those of a few sensitive materials have fluctuated sharply, tending to dominate shorter-term movements in the average price of all industrial commodities. The annual rate of increase in prices of industrial commodi­ ties, which had moderated to about 2.6 per cent in the second Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 687 half of 1968, accelerated to more than 6 per cent between December and March and then in the next 3 months dropped to less than 1 per cent. Although these changes in the aggregate index seem to indicate extreme price movements this year, the flattening out in the industrial average—as well as the sharpness of the preceding rise—was in the main the result of the be­ havior of lumber and plywood prices, which had soared in the December-March period and then had dropped abruptly. Be­ tween mid-June and mid-August, with lumber and plywood prices still receding but less sharply, industrial prices rose at an annual rate of 3.2 per cent. Lumber and plywood. Over the 16 months ending in March 1969, the increase in the price of lumber and wood products was the sharpest for any similar period in more than 40 years, except for a period immediately after World War II. The price rise began in late 1967 as residential building recovered from a sharp drop in 1966, and then it accelerated greatly after mid-1968 as housing starts rose to an annual rate of 1.7 million in early 1969. Exports of logs to Japan also increased last year, and significant amounts of plywood were shipped to Vietnam. Moreover, sup­ plies were curtailed last fall and winter by bad weather in logging areas, by strikes, and by shortages of freight cars. As price increases accelerated, the Government in March took steps to increase the flow of logs to processors—such as increasing the amount of timber that could be cut from Federal lands and making more freight cars available for shipping. Perhaps of more importance in reversing the price trend, how­ ever, was an improvement of producing conditions in the western timberlands during the spring. 3 | Price increases at WHOLESALE and RETAIL continue rapid this year I I I I I ' 1965 1967 1969 Bureau of Labor Statistics indexes except for wholesale prices groupings of BLS data. Latest figures: wholesale, August esti­ of industrial commodities and foodstuffs, which are FRB re­ mates; consumer, July. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 As soon as the flow of logs rose significantly, prices of ply­ wood and lumber began to plummet, and by August they had receded to about the year-earlier level. The rapidity of the decline was attributable in part to stocks of building materials that had been accumulated in the expectation that building activity this spring and summer would increase more than it actually did. WHOLESALE INDUSTRIAL COMMODITY PRICES Percentage changes at annual rates 1968 1969 Item June- 1st H 2nd H Qi Q2 Aug. All industrial commodities............ 1.8 2.6 6.2 0.7 3.2 Sensitive materials...................... 1.1 7.9 20.3 -11.8 1.1 Lumber and plywood............ 23.0 36.2 61.3 -78.3 17.7 Nonferrous metals.................. -2.9 -0.2 20.7 17.2 -37.8 Other sensitive materials........ -1.2 1.9 0.1 4.1 5.3 Nonsensitive materials............... 1.8 I .3 5.2 3.3 3.8 Finished goods............................ 2.4 2.2 2.9 2.5 2.1 Consumer nonfood products. 2.5 1.5 2.6 2.6 2.2 Producers’ equipment............ 2.3 3.5 3.1 2.4 3.0 Addendum: Steel mill products... 0.7 2.0 9.5 3.9 13.8 Note.—BLS data; FRB groupings. Nonferrous metals. Prices of nonferrous metals have increased 13 per cent in 1969 and have accounted for the major share of the rise in the sensitive materials price index. All the major nonferrous metals have participated in the rise, and several have been subject to repeated increases. Increased demand was re­ sponsible in large part for the resumption of a rapid advance in nonferrous metals prices last fall and winter, after a decline in the summer months following the settlement of a prolonged copper strike. An advanced level of construction required large amounts of these metals, as well as lumber. Industrial production rose faster and in the first 6 months of this year was more than 5 per cent higher than last, with output of machinery and other producers’ equipment advancing even more than that. Among the nonferrous metals, the demand for copper this year has been augmented by the need to build inventories, which had been depleted by the long strike in 1967-68. Domestic con­ sumption is expected to continue to be considerably higher than last, and demand in the rest of the world has increased. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 689 Domestic copper prices have been raised four times this year. After the increase in early September the producer’s price was 52 cents per pound, 10 cents above the August 1968 level, and 21 cents above January of 1964. Nevertheless, a much higher world price continues to exert upward pressure on domestic producers’ prices. Fabricators of copper and brass products draw about 40 per cent of their materials from copper scrap—the price of which has risen 50 per cent over last year—and from high priced im­ ports. Accordingly, prices of brass mill products too have been increased repeatedly over the past year. High demand for aluminum in construction and by aircraft and other industries has resulted in capacity rates of operation. Prices of aluminum ingots were raised after a wage settlement in June of last year and, with demand strong, were raised again in January of this year. Prices of fabricated aluminum products have risen about 13 per cent this year; the last increase was in early August following the second wage increase under the 1968 settlement. Lead production in the first 6 months of this year was 70 per cent above the same period last year, when it was curtailed by a strike. Nevertheless, with consumption rising, prices have been advanced five times this year, reaching a high of 15.5 cents per pound this summer. Steel and steel products. Industrial expansion has led to boom conditions in steel markets around the world and to a much tighter situation in U.S. markets this year than had been antici­ pated. In the first half of the year production of raw steel in the United States was about 71 million tons, down less than 3 million tons from the same period in 1968 when buying for inventory was heavy. In Europe and Japan, as well as in the United States, utilization of plant capacity is high. Prices of steel mill products have risen about 7 per cent since mid-1968. Following the 3-year wage settlement at the end of July 1968, steel mills announced price increases, but in early November there were some competitive reductions in prices, and foreign exporters to the United States were asked to abide by informal quotas on steel shipments. In mid-December, as demand strengthened, prices of steel mill products were restored to about the September-October levels, and in the first 8 months of this year there was a rise of about 6 per cent. Imports of steel in the first 7 months of this year declined appreciably from last year—reflecting higher demand abroad, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN a SEPTEMBER 1969 I LUMBER and PLYWOOD prices fluctuate widely; price increases I for METALS and COAL accelerate RATIO SCALE, 1957 59’100 the steel import quotas, and the impact of the dock strike at East Coast and Gulf ports early in the year. Exports of steel, although small in proportion to domestic output, have risen this year. Despite a high rate of shipments, profits in the steel industry de­ clined sharply in the second quarter of 1969. In the summer, wage rates were increased in the industry in accordance with last year’s contract. Other materials. Consumption of coal in the electric power in­ dustry has risen sharply and other industrial consumption has also increased in recent years. Hence coal prices have been rising since 1965. This year production of coal has fallen below last year’s level, largely as a result of wildcat strikes, and coal prices have risen about 9.5 per cent over the last year. Among other fuels, crude petroleum prices, which had been advancing mod­ erately since 1965, rose rather sharply in the spring of this year. Among the volatile or sensitive materials, prices of natural rubber have risen sharply further, reflecting heightened demand, hedging against possible devaluation of foreign currencies, and other factors. Prices of hides and skins—which are very volatilehave recently fallen somewhat, after a brisk rise since early 1967. Prices of the less volatile industrial materials (including steel Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 691 and fuels—which were discussed above—most chemicals, and most textiles) rose rapidly from the fall of 1967 to the spring of 1968 and then showed little change until last winter, when a sharp rise was resumed. Since March the rate of advance has slowed; nevertheless, in the first 8 months of this year, prices of the less volatile materials rose at an annual rate of more than 4 per cent. Producers' equipment. Business expenditures for producers’ BLS data, FRB groupings. Latest figures, August. equipment rose about 13 per cent from the second quarter of 1968 to the second quarter of this year, and the backlog of un­ filled orders for machinery also continued to rise. Increases in machinery and equipment prices over the past year have ranged from 5.5 per cent for special-purpose machinery and 5 per cent for tractors down to 2 per cent for electrical machinery; the average rate of advance of about 3.3 per cent over the past year was about the same as in the previous 12 months. Prices of trac­ tors, agricultural machinery, and trucks and automobiles for business use rose in the autumn of 1967 and of 1968, and a further increase is anticipated this autumn. Construction costs. Construction costs rose by 7.5 per cent in the year ending in July compared with 5.5 per cent in the preceding year, according to the Department of Commerce com­ posite index. Average prices of building materials have fallen somewhat since this spring as prices of lumber and plywood declined; nevertheless, in July, prices of materials were still 4.5 per cent above last year—reflecting large increases in prices for flat glass products, plumbing fixtures, cement, and other mate­ rials. Wage costs, moreover, have continued to rise. In the first half of the year, first-year wage increases for construction workers provided for under new wage contract settlements averaged 15 per cent, much larger than the increases gained by workers generally. CONSUMER PRICES The rise in consumer prices has accelerated this year, attaining a rate of more than 6 per cent annually, the fastest rise for any 7-month period since 1951. The predominant influences in the rapidity of price increases were the long-continued rise in money incomes and demand and the increases in cost pressures. But some special factors also contributed. Among these were a sharp rise in interest rates on home mortgages and, in the second quarter, an exceptionally rapid advance in food prices resulting in part from declines in per capita supplies of such important foods as meat, eggs, and dairy products. The average rise in con- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 sumer prices in the second quarter would have moderated had it not been for the accelerated increase in food prices, since prices of services and nonfood commodities rose somewhat less rapidly than in January-March. In July the rate of advance in all consumer prices continued at about 6 per cent, although some part of the rise was seasonal. Food prices advanced much less rapidly on a seasonally adjusted basis, but this was offset in large part by a more rapid advance in adjusted apparel prices. Prices of services continued to rise at about the second-quarter rate. Over the past year the spread between wholesale and retail prices of consumer nonfood commodities has widened—the for­ mer rising about 2.3 per cent and the latter 4.3 per cent. Costs of transportation, trade-margins, finance, and insurance, which account for much of the spread, have apparently increased faster than manufacturers’ prices. Durable goods. Although prices of nondurable goods started to rise briskly as early as 1965, prices of durable goods did not increase significantly until 1967 and 1968. After several years of slight declines in new-car prices, prices of 1968 models were raised about 4 per cent and there was a further—though smaller —increase in 1969 models. Increases have recently been an­ nounced for 1970 models. Used car prices began to rise faster in 1967 and 1968, and in the first quarter of 1969 an accelerated rise contributed to the sharpest upward spurt in the average for all consumer durable goods since the Korean war period. Sharply rising prices of new and existing homes—also included among consumer durable goods in the consumer price index— also contributed to the acceleration. In addition, prices of house- 5 | Costs of CONSUMER GOODS continue upward RATIO SCALE, 1957-59=100 BLS consumer price indexes. Latest figures, July. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 693 hold durable goods, such as furniture and appliances, have been rising faster this year than last. In early September, further in­ creases in prices of appliances were announced by major makers. Foods and apparel. Retail prices for foods have climbed 5.6 per cent over the past year (July 1968-July 1969), equaling the rise in the average level for all consumer goods and services. The situation has been similar to that in 1965-66, when food prices rose more than 5 per cent from August to August before receding in the fall, and dropping further in the mini-recession of early Spurt in prices of MEAT raises retail food costs । । । । । 1965 1997 1969 BLS consumer price indexes. Meat includes poultry and fish. Latest figures, July. 1967. From that time until late last year, increases in food prices were more modest. In the last few years per capita consumption of food has been rising, despite a continued decline in the percentage of the family budget spent on food. The proportion of higher-priced items in the family budget has increased, and the demand for beef has been particularly strong. In recent years beef production has increased at a rate of 3 to 4 per cent annually without caus­ ing prices to fall. When marketings of livestock, especially beef, dropped in the second quarter of this year, prices of livestock rose sharply. Increases in meat prices at both wholesale and retail were also large. Wholesale prices rose 16 per cent between March and June, and retail prices, after seasonal adjustment, rose almost 9 per cent. In July livestock prices moved down as cattle market- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 ings increased, but wholesale and retail prices of meat rose fur­ ther. In August and early September, wholesale prices of meat receded. Through July the advance in prices of food at the retail level was considerably less than at wholesale, reflecting in part con­ sumer resistance. The consumer food budget was being severely strained by higher prices not only for meat, but also for eggs and dairy products, which were considerably above year-earlier levels. Per capita consumption of these foods in the second quarter dropped below that of the same period last year. Prospects for an easing in meat prices at retail this year are uncertain. Marketings of beef cattle have increased more than seasonally since July and supplies are larger than a year earlier. Wholesale prices of meat in early September had given up about two-thirds of their spring rise. Retail prices, which rose less rapidly in earlier months than wholesale prices, are likely to fall less or perhaps not at all. A less-than-seasonal easing in pork prices this fall and winter is probable, since the pig crop this spring was below normal. Because of the less-than-usual increase in food supplies this year—the result in part of a severe winter and stormy spring in much of the country—the Department of Agriculture has esti­ mated that per capita consumption of food this year will level off, a departure from the steady growth in most recent years. Apparel prices have risen about 6 per cent at retail over the past year, a somewhat faster increase than in the previous 12 months, and seasonally adjusted prices for clothing have con­ tinued to rise at an undiminished pace this summer. Despite large imports, increases in prices of footwear have kept pace with those for garments. At wholesale, prices of apparel have been rising at only half the pace of the increase at retail, further widening the spread observable since 1966 between the two series. Consumer services. The cost of consumer services has moved up faster than prices of commodities at retail for several years, and each year has seen a faster rise than the last. Over the past 12 months, service prices have increased more than 6.5 per cent, compared with about 5.5 per cent in the preceding 12 months, and more than 4 per cent in the year before that. In the first quarter of this year the average for all services was rising at an annual rate of about 8 per cent, but recently the rate has slowed slightly. Despite the sharper rise in their prices, the demand for services Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 695 has continued to grow, keeping pace with the demand for com­ modities in the last few years. Unfortunately, the rise in produc­ tivity in the service industries is slower than in manufacturing and agriculture, both of which benefit more from technological im­ provements. With wage increases large in the service industries, costs have risen rapidly. Labor-intensive services such as auto repairs, baby-sitting, medical care, barber and beauty shops, and hotel services, to­ gether comprise about half of the value of services. Rent and financial charges such as interest, insurance, and property taxes make up the remainder. Among the labor-intensive services, the rise in costs of medical care has been among the most continuous and most sharp. Over the 12 months ending in July, these costs rose 8.5 per cent, faster than in the preceding year and only a little less rapidly than from mid-1966 to mid-1967. In the last year there has been a sharp further rise in physicians’ fees and the cost of hospital care— reflecting the fact that the supply of personnel and facilities in this area has not kept pace with the demand. Professional serv­ ices and charges for household and auto maintenance and repair have also risen rapidly in the past year. Rent is the slowest-moving important item in the service total. Despite a steady drop in vacancy rates in the past year, rents rose only about 3.2 per cent. Service costs related to home-ownership have risen much faster than that: mortgage rates in June were 14.5 per cent above last June; maintenance and repairs, 8.5 per cent; and property taxes, 5.5 per cent. Much of the bulge in service charges this spring was caused by the resumption of a rapid advance in mortgage interest rates, which had leveled off in the closing months of 1968. Between February and April mortgage rates rose sharply but this rise affected living costs only for the fraction of families buying a home during the period. In the consumer price index, changes in the cost of financing a mortgage from one month to the next are considered to be part of the change in the “price” of buying a home. This price moves up much more rapidly in periods of rising mortgage rates than the average monthly cost of mortgage finance for all home­ owners. Mortgage charges will probably increase less rapidly during the rest of this year, and the rise in the consumer price index as a whole should be restrained by a slower rise in food prices. □ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This 15th joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Senior Vice President in charge of available additional information on foreign the Foreign Department of the Federal Re­ exchange operations from time to time. The serve Bank of New York, and Special Man­ Federal Reserve Bank of New York acts as ager, System Open Market Account. It agent for both the Treasury and the Federal covers the period March to September 1969, Open Market Committee of the Federal Re­ Previous reports were published in the serve System in the conduct of foreign March and September Bulletins of each exchange operations. year beginning with September 1962. The foreign exchange markets had a lot to this speculative timetable was suddenly contend with during the past 6 months. The disrupted as reports spread like wildfire that root difficulties were the continuation of se­ the German Government might be prepared rious imbalances in international trade and to consider a revaluation of the mark in the payments—notably the German and Japa­ context of a multilateral realignment of nese trade surpluses, the French deficit, and parities. Highly charged market expecta­ abnormally heavy short-term capital flows tions of eventual parity changes exploded in from Europe to the United States via the a burst of speculation in favor of the mark Euro-dollar market. and against a broad range of other curren­ During most of the period, speculative cies. activity was tempered by the high cost of In 10 days, the flow of funds into the borrowing in the Euro-dollar market. In German Federal Bank amounted to $4.1 focusing as it generally does on short-term billion, with $2.5 billion flooding into Ger­ risks, the exchange market was also inclined many on Thursday and Friday, May 8 and 9. to the view that no parity changes in either A substantial share of this massive flow into the French franc or the German mark were Germany apparently resulted from hedging politically feasible before the French and and related operations by U.S. corporations, German elections. In early May, however, with consequent gross exaggeration of the 697 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 U.S. liquidity deficit in the second quarter ling experienced some backwash from the of 1969. Various European countries were French move, other currencies were rela­ even more severely affected: reserve losses tively unaffected as it became clear that the approximating $1.9 billion were suffered by new franc rate could be readily accommo­ 10 different European countries during the dated within the international structure of speculative crisis. On May 9 a German currency parities. Government communique flatly rejecting During the 6-month period under review, revaluation broke the speculative wave, and most of the pressures on central bank re­ the exchange markets settled back to orderly serves generated by trade imbalances, capi­ trading as money flowed out from Germany tal flows in response to interest-rate differen­ into foreign markets through midsummer. tials, and speculative disturbances were more The reflux of funds from Germany was ac­ or less fully financed by the Federal Reserve centuated by the strong pull of high Euro­ swap network (Table 1), associated interdollar rates. TABLE 1 During the spring and early summer of FEDERAL RESERVE RECIPROCAL 1969 the Euro-dollar market was subject CURRENCY ARRANGEMENTS to unprecedented credit demands, generated in millions of dollars in large part by the effects of increasing Amount of monetary restraint in the United States. As facility, Institution Sept. 10, U.S. commercial banks borrowed heavily in 1969 the Euro-dollar market through their over­ Austrian National Bank................................................ 100 seas branches, Euro-dollar rates moved National Bank of Belgium............................................ i 500 Bank of Canada............................................................. I ,000 steadily upward through mid-June, reaching National Bank of Denmark........................................... 100 Bank of England............................................................ 2,000 historic highs and strongly attracting funds Bank of France............................................................. 1 ,000 German Federal Bank................................................. 1 ,000 from foreign financial centers. In response Bank of Italy.................................................................. 1 ,000 Bank of Japan............................................................... 1 ,000 to these developments, a number of Euro­ Bank of Mexico..............................>............................. 130 pean countries took steps to protect their Netherlands Bank........................................................ 2 300 Bank of Norway............................................................ 100 domestic money markets and international Bank of Sweden............................................................. 250 Swiss National Bank...................................................... 600 reserves from Euro-dollar pressures, and in Bank for International Settlements: Swiss francs/dollars................................................... 600 the summer months the Board of Governors Other authorized European currencies/dollars......... I ,000 of the Federal Reserve System issued Total 10,680 amendments to its regulations in order to 1 Amount was increased by $75 million effective May 15, 1969, and reduce the attractiveness of Euro-dollars to by $200 million effective Sept. 2, 1969. 2 Amount was reduced by $100 million effective May 15, 1969. U.S. banks. Euro-dollar rates declined sub­ stantially throughout July and early August, national short-term credit facilities, and as the supply of dollars continuously gen­ large-scale recycling arrangements. Reflect­ erated by the U.S. liquidity deficit was aug­ ing the continuation of a very substantial mented by further dollar outflows from Ger­ U.S. surplus on official settlements account, many. however, swap drawings by the Federal Re­ On August 8, the long ordeal of the serve during the period were limited to $40 French franc since the events of May 1968 million on the Netherlands Bank and $100 came to an end as the French Government, million on the Swiss National Bank. Each of in a cleanly executed maneuver, devalued these drawings was fully repaid during the the French franc by 11.1 per cent. Although period under review, and in early Septem­ the Belgian franc and, to some extent, ster­ ber no swap drawings by the Federal Re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 699 TABLE 2 age of November 1968 and on other for­ FEDERAL RESERVE SYSTEM SWAP ACTIVITY eign central banks. Before the end of June UNDER ITS RECIPROCAL SWAP LINES the Bank of France repaid the entire $461 In millions of dollars equivalent million outstanding under the Federal Re­ Drawings or serve swap line. No new drawings were System repayments ( —) System swap swap made subsequently, and the entire $1 bil­ draw­ draw­ Transactions with— ings, 1969 ings, lion swap line to the Bank of France with Jan. 1, Sept. 10, 1969 1969 the Federal Reserve currently remains avail­ July I- II Sept. 10 able to that bank on a standby basis. German Federal Bank. 112.1 -112.1 The National Bank of Denmark repaid in 40.0 Netherlands Bank -40.0 mid-March the $25 million then outstand­ Swiss National Bank. . 320.0 -280.0 - 1 4 0 5 0 . . 0 0 -95.0 ing under its Federal Reserve swap facility, Total 432.1 -352. 1 15.0 -95.0 but in April reactivated the line, drawing $50 million to replenish reserves lost through Euro-dollar market pressures. Dur­ serve were outstanding (Table 2). In con­ ing the mark crisis in May the National trast, six European central banks plus the Bank had to draw another $50 million. Bank for International Settlements (BIS) With the $100 million Federal Reserve had occasion to draw on the Federal Reserve swap line thus exhausted, the U.S. Treasury during the period. Such foreign drawings to­ reinforced the Danish defenses by providing taled $1.3 billion as of the end of August a special credit facility of $50 million. Dur­ (Table 3). Since the inception of the swap ing June an inflow of funds to Denmark network in March 1962, total drawings on enabled the National Bank to repay the the swap lines by the Federal Reserve and $100 million to the Federal Reserve—re­ its partner foreign central banks have storing the Federal Reserve credit line to a amounted to $19.5 billion. fully available standby basis; the Treasury Bank of England drawings of $1,150 mil­ credit of $50 million also remains entirely lion outstanding at the end of 1968 were available. reduced somewhat during the early months The Austrian National Bank made its of the year, but rose to a peak of $1,415 first drawing on the swap line in the amount million during the crisis created by the spec­ of $50 million to replenish reserves lost in ulative rush into German marks in early the mark crisis early in May. This drawing May. Subsequently, the Bank of England was fully repaid in August. made additional repayments, and as of the The Netherlands Bank suffered reserve end of August the swap debt outstanding drains late in the second quarter as a result was $975 million. of the strong pull of the Euro-dollar market, Bank of France drawings on the swap and it drew on the Federal Reserve swap line, which had risen to a peak of $611 mil­ line during June and July for a total of $192 lion in November 1968, were reduced to a million. Defensive measures by the Nether­ balance of $306 million in early March, but lands Bank, including a discount rate in­ rose to $461 million by the end of the crease, subsequently reversed the flow of month. Pressures on the French franc dur­ funds and enabled the Netherlands Bank to ing the May crisis were financed by drawing reduce its swap debt outstanding to $109.7 on the $200 million credit provided by the million by late August. U.S. Treasury under the Bonn credit pack­ The National Bank of Belgium also ex- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 perienced reserve pressures originating in No operations in forward markets were the Euro-dollar market early in the year undertaken by either the Federal Reserve and raised its outstanding drawings on the or Treasury during the period under review. Federal Reserve swap line to $40.5 million Since the beginning of 1969, the out­ by the end of January. After effecting partial standing total of U.S. Treasury securities repayments during the rest of the first quar­ denominated in foreign currencies has de­ ter, the National Bank found it necessary to clined slightly, to $2,220.1 million as of increase its swap drawings to $175.5 million September 10 (Table 4). In February and during the mark crisis in May but was able May the Treasury repaid at maturity a total to bring down the total of this debt to $114 of $99.9 million equivalent of mark-denom­ million as of the end of June. In July Bel­ inated securities held by the German Fed­ gium used funds available from the Interna­ eral Bank. In April, however, in connection tional Monetary Fund (IMF) to finance a with earlier agreements relating to U.S. mili­ complete repayment of outstanding debt to tary expenditures in Germany, the Treasury the Federal Reserve, and the swap line re­ issued to the German Federal Bank a medi­ verted to a fully available standby basis. um-term security for $124.3 million equiv­ Sudden pressures on the Belgian franc de­ alent of marks. This was the last of eight veloped in the wake of the French devalua­ quarterly issues, and no further securities tion, however, and in mid-August the Na­ issues are contemplated under the new 2tional Bank made new drawings totaling year offset agreement signed in July. In or­ $244 million. By the end of August, $20 der to refinance Federal Reserve swap obli­ million had been repaid, leaving a debtor gations to the Swiss National Bank, the balance of $224 million. Treasury issued a $49.7 million Swiss franc- Finally, relatively minor drawings on its denominated security to the BIS and a total swap line were made by the BIS to finance of $94.9 million of such securities to the brief imbalances in cash flows. In contrast Swiss National Bank. In July, the Treasury to earlier years, the BIS did not draw on repaid at maturity $53.2 million of a $152.6 the swap line to finance intervention in the million equivalent Swiss franc security held Euro-dollar market during the June win­ by the BIS while renewing the remainder. dow-dressing period, since it was judged In addition, the Treasury redeemed a $25.2 that the pressures then impinging on the million note denominated in Austrian schil­ Euro-dollar market originated in funda­ lings in July, and in August redeemed a mental policy matters rather than seasonal $100.2 million note denominated in Italian strains or speculation. lire; both repayments were in advance of As shown in Table 1, during the period maturity. under review the Federal Reserve swap line with the Netherlands Bank was reduced GERMAN MARK from $400 million to $300 million on May Throughout 1968 there were recurrent ru­ 15, 1969, while the swap line with the Na­ mors of imminent revaluation of the mark tional Bank of Belgium was simultaneously as Germany continued to show a very large increased from $225 million to $300 mil­ surplus in its balance of payments on cur­ lion. On September 2, the Belgian swap line rent account. Although the current-account was further increased to $500 million, surplus was offset by an equally substantial thereby enlarging the over-all network to capital outflow, the markets remained ap­ $10,680 million. prehensive that the outflow could not be sus- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 701 tained and that German competitive strength By early April congestion in the capital eventually would force a mark revaluation. market was becoming severe and the West These fears culminated in a huge rush of EXCHANGE RATES: Sept. 1968 to Sept. 1969 funds into Germany in November 1968, but N.Y. noon offered rates speculation receded in the face of the deter­ mined refusal by the German Government CENTS PER UNIT OF FOREIGN CURRENCY . 242.00 to revalue the mark. Reversal of the massive UNITED KINGDOM 240.00 influx of funds took some time, but by early ^r|rj-J'|,^4*' "^T^ ' T^ ^\^--------------238.00 1969 German monetary reserves were back 20.4002 . 18.1406 to their pre-November level and the volume FRANCE -------of outstanding market swap commitments of 20.2550 ------------------------------------------------------------------------------------------------------------------------------- 18.0044* the German Federal Bank had been sig­ nificantly reduced. Moreover, by late Jan­ uary the Federal Reserve had acquired suf­ ficient marks to repay in full its $112.1 million equivalent of swap drawings on the German Federal Bank. During the first quarter of 1969 the flow of funds from Germany continued unabated, —-------------------------------------------------------------------------------------------------------------------22.8885 as the authorities pursued a policy of mon­ etary ease at a time when Euro-dollar rates were rising sharply. In addition to the sub­ stantial flow into the short-term Euro-dollar market, long-term capital exports rose to record levels as foreign borrowers flooded the German capital market with loan de­ mands and securities issues in response to the relatively low borrowing costs in Ger­ many. With the mark consequently trading below par (Chart 1), the Federal Reserve and the Treasury purchased marks to add to balances throughout the quarter. Such capital outflows from Germany more than offset the current-account sur­ plus and by mid-March had contributed to a tightening of the German money market and the first signs of indigestion in the capi­ tal market. At the same time, with domestic credit demand intensifying, German mon­ Black rule indicates par value of currency. Weekly averages of daily rates. Upper and lower boundaries etary policy shifted toward somewhat less of panels represent official buying and selling rates of dollars against the various currencies. However, the Bank of Canada ease. In order to prevent too rapid a tight­ has informed the market that its intervention points in trans­ actions with banks are $0.9324 (upper limit) and $0.9174 ening of domestic liquidity, however, the (lower limit). * indicates that no rate is shown for the week ending Novem­ Federal Bank raised its market swap rate, ber 22 because the average of daily data for that week was severely distorted by abnormal or nominal rates during the thereby reducing the incentive for banks to Bonn meeting on November 20-22 when several major Euro­ make covered placements abroad. pean markets were closed. t indicates change as of August 8, 1969. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 German Capital Committee acted to space rate to rise steeply and this helped dissipate out issuance of securities by foreign bor­ the buying pressure. Meanwhile, it soon be­ rowers. With capital outflows dropping came clear that the transfer of power in sharply, the steady decline in German re­ France following President de Gaulle’s serves came to an end. Moreover, the grad­ resignation would be orderly and that a ual shift in official policy toward restraint franc devaluation by the interim govern­ aroused concern that reliance on monetary ment was unlikely. Consequently, demand means to curb inflationary pressures might for marks began to taper off, and the Fed­ result in reflows of funds to Germany and eral Bank succeeded in rechanneling to the consequent renewed buying pressure on the international money markets most of the mark. The 1 percentage point jump to 4 $500 million taken in during this period. per cent in the Federal Bank’s discount rate The market atmosphere changed dra­ on April 18 (Chart 2) pointed up this poten­ matically overnight, however, following re­ tial dilemma inherent in official efforts to ports that German official circles might be avert domestic inflation while avoiding in­ willing to consider a mark revaluation as ternationally disruptive shifts of funds into part of a mutilateral realignment of parities. Germany. Demand for marks soared as firms with Against this background, the market commitments in marks rushed to hedge grew increasingly apprehensive at the ap­ them, commercial payments leads and lags proach of the April 27 referendum in began to swing heavily in favor of the mark, France—fearing that a defeat for President and outright speculation began again. Be­ de Gaulle and his resignation from office tween April 30 and Friday, May 2, the might lead to new speculation on changes Federal Bank purchased over $850 million. in currency parities. Demand for marks Speculative pressures built up on an even rose sharply, and on April 22 the Federal more massive scale during the following Bank began purchasing dollars. The bank week. On May 7 the Federal Bank sus­ immediately resumed swap operations, pended its swap operations as it became pushing the dollars back into the market. clear that the spot dollar proceeds of the The news of the referendum defeat for swaps were being used to finance specula­ President de Gaulle touched off substan­ tive purchases of marks rather than covered tially heavier demand for marks on April investments abroad, as requested by the 28, but the authorities permitted the spot authorities. Frenzied speculation induced PER CENT 10 UNITED STATES CANADA UNITED KINGDOM GERMANY CENTRAL BANK DISCOUNT RATES: September 1968 to September 1969 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 703 huge shifts of funds to Germany, exerting supporting measures would be announced strong pressure on the Euro-dollar market in a few days. By then the exchange mar­ and dangerously straining the international kets had witnessed the heaviest flow in in­ reserves of some of Germany’s trading ternational financial history. The specula­ partners. tive onslaught between the end of April and On May 8, in view of the unprecedented May 9 increased German monetary reserves speculative excesses, the German Federal by some $4.1 billion—including $2.5 bil­ Bank decided to limit the amount of marks lion on May 8 and 9 alone—to a record it would supply in markets outside Ger­ level of $12.4 billion. many. Consequently, the Federal Bank The exchange markets began returning to placed a fixed amount on its support order normal on the Monday following the Ger­ through the Federal Reserve Bank of New man Government’s decision, which was York. When heavy demand for marks backed up by an official communique from spilled over into the New York market, the Basle declaring that agreement had been U.S. Treasury made available $114 million reached among the central banks on steps of marks for sale through the Federal Re­ to recycle the speculative flows. The un­ serve Bank of New York. These marks, winding of speculative positions brought a plus those provided by the German Federal sharp fall in the mark rate and the Federal Bank, made it possible to hold the rate at Bank began to sell dollars on a large scale. its ceiling through most of the trading day On May 13 the German authorities an­ in New York; at about 3:30 p.m. the sup­ nounced new measures to be submitted to ply was exhausted, and in the closing hours parliament, including: (1) authority for of dealing the mark traded up to 26 cents. the German Federal Bank to impose higher The following day—Friday, May 9—was minimum reserve requirements on all for­ even more turbulent, with transactions in eign-owned mark deposits in German banks marks taking place outside Germany at and (2) extension beyond the March 31, rates as high as $0.2550 even while the 1970, expiration date of the tax adjustments German Federal Bank continued to sell introduced in late 1968 effectively to raise marks in its market at $0.2517F^. The export prices and lower import costs. speculation did not halt until the German Thereafter, there was a large outflow of Government announced late on that day funds from Germany that continued through that it would not revalue the mark and that early June, as Euro-dollar rates moved 1969 1969 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 higher and as the Federal Bank resumed U.K. trade deficit was slow and uneven swap operations. A tightening of liquidity during the winter months, and sporadic conditions in Germany around the mid­ labor difficulties, tensions in the Mideast, June tax date brought a temporary hiatus and rising interest rates abroad tended fur­ in the outflow, but despite a further in­ ther to delay the return of confidence. The crease in the Federal Bank’s discount rate first quarter of the year, however, is gen­ to 5 per cent, the flow resumed toward the erally favorable to sterling because of sea­ month-end and continued into early July. sonal strength in the export trade of the By then nearly $3 billion had returned to overseas sterling area (OSA). Since most the international markets. of the official sterling holdings of those In subsequent weeks the market began to countries are now guaranteed under the show signs of nervousness once again, with terms of the September 1968 arrangements, the growing pre-election debate among Ger­ OSA countries were encouraged to retain man political figures keeping the issue of re­ rather than convert their sterling balances valuation of the mark in the foreground. —thus strengthening the net demand for Thus, when the German Federal Bank sterling in the markets. Moreover, with the moved to tighten monetary policy further London money market under tight official by raising the minimum reserve require­ rein, foreigners tended to buy rather than ments of commercial banks toward the end borrow sterling. In these circumstances, of July, there was a brief flare-up of de­ sterling was firm and the Bank of England mand for marks. This scare passed quickly, was able to make substantial dollar gains. however, and the outflow of funds resumed. The British authorities used the dollar The devaluation of the French franc on inflow to meet repayment obligations to the August 8 introduced new uncertainties and IMF and to begin repaying outstanding triggered a fresh rush of demand for marks. shorter-term indebtedness. By the end of The Federal Bank once again purchased March the Bank of England had reduced its dollars, but the buying pressures were not drawings from the Federal Reserve by $50 sustained and the authorities were able to million to $1,100 million and had liquidated swap back to the market a substantial part part of the credits drawn under the 1968 of the inflow. The mark remained firm into sterling balances arrangement. early September in relatively light trading, Sterling remained seasonally strong in and there was no further official interven­ early April, and the Bank of England was tion in the spot market. With funds begin­ able to make a further repayment of $150 ning to come into the reserves as a result of million to the Federal Reserve. As the maturing market swaps, however, the Fed­ month wore on, however, the seasonal eral Bank progressively reduced its swap strength began to fade, and in midmonth rate in order to encourage banks to renew the latest U.K. trade figures showed a these transactions. smaller improvement than the market had expected, with imports remaining high. In STERLING this setting, the U.K. Government’s new The unwinding of the speculative excesses budget stirred little market enthusiasm, de­ of November 1968 brought an improve­ spite general satisfaction with the much ment in sterling rates, but the exchange tighter stance of fiscal policy in evidence. markets continued to take a very cautious To bolster the austerity program, the U.K. view of the future. Progress in reducing the authorities provided for substantially in- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 705 creased taxes and an over-all surplus of This episode, of course, interrupted the more than <£800 million for fiscal 1969-70. progress the U.K. authorities had been Sterling was also adversely affected in making in reducing their external indebted­ late April by developments abroad. Euro­ ness, as the Bank of England had to draw dollar rates had advanced to relatively high on the swap line with the Federal Reserve levels in March, and pressures in that mar­ to help cover market losses. At their peak, ket were intensified in April when the Fed­ swap drawings reached $1,415 million, but eral Reserve Banks raised their discount sterling had been very heavily oversold and rates and several continental European it rebounded sharply following the German central banks followed suit. Moreover, in a Government’s rejection of a revaluation of number of countries, steps were taken to the mark on May 9. During the remainder curtail capital outflows or to induce repatri­ of May and through June, the Bank of ations of funds. Throughout this period England was able to make sizable reserve there was no incentive to move covered gains, despite the further upsurge of interest funds into London and, indeed, there was rates in the Euro-dollar market. little net incentive for users of sterling to The reserve gains once again were used build their balances above minimum levels. to make repayments of debt under various In these circumstances, sterling was vul­ international credit lines. By the end of June nerable to the uncertainties generated by the Bank of England had succeded in re­ President de Gaulle’s decision to stake his ducing its outstanding drawings from the presidency on the outcome of the April 27 Federal Reserve to $1,025 million, $75 constitutional referendum. Sterling weak­ million below the end-of-March level. In ened as the voting date approached, but addition, during May and June the United there was no large-scale selling and official Kingdom made a large scheduled repay­ support costs were modest. The rate ment to the IMF and liquidated the bulk of dropped sharply following the referendum the credit still outstanding under the 1968 and President de Gaulle’s resignation, but demands for sterling for month-end pay­ TABLE 3 ments absorbed most of the immediate DRAWINGS AND REPAYMENTS ON FEDERAL selling pressure. RESERVE SYSTEM BY ITS SWAP PARTNERS Just as the market was beginning to re­ In millions of dollars gain its equilibrium, a new wave of specu­ Drawings, or lation on possible parity realignments was Draw­ repayments ( — ) Draw- Draw­ ings ings tngs unleashed by reports of German official Banks drawing on on on on System System, System, System, willingness to consider revaluing the mark Jan. 1, June 30, Aug.31, 1969 1969 1969 as part of a broader readjustment of pari­ ties. As funds flowed from virtually every Austrian National Bank................... major center into Germany, sterling was National Bank of 74.0 particularly hard hit, with the familiar Na B ti e o l n g a iu l m B . a .. n .. k . . of 7.5 -5 2 8 5 . . 5 0 Denmark. ........ -25.0 build-up of selling pressure in advance of Bank of England....... 1,150.0 -50.0 the weekends. Over the 10 days that it took 225.0 Bank of France......... 430.0 -194,0 the speculation to run its course, Bank of Netherlands Bank,... Bank for International England support costs in the spot market S G e e t r t m lem an e n m ts a r (a k g s a ). i . n . s . t 80.0/ 1 -13 5 1 1 . . 0 0 were very large, while forward sterling Total................... 1,667.5 -83.5 discounts widened sharply. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 sterling balances arrangement. On the other French Government had bolstered its de­ hand, the Bank of England obtained new fenses with anti-inflationary measures, $2 credit from the German Federal Bank billion in new international credits, and re­ under a recycling arrangement designed to imposition of exchange controls. Late in neutralize part of the speculative flow from 1968 and early in 1969 the exchange con­ the United Kingdom into Germany and trols were tightened to require French com­ drew $500 million from the IMF under a mercial and banking interests to surrender new standby facility. On balance, the substantial amounts of foreign exchange to British authorities succeeded in making the Bank of France. The French authorities sizable net repayments of debts during the used these exchange inflows partly to cover second quarter, and indeed monetary data the large current deficit in the French bal­ released recently indicate that in the second ance of payments, but also to reduce their quarter the underlying U.K. balance of outstanding indebtedness under short-term payments was in substantial surplus. international credits. Thus, by early March A generally quieter atmosphere prevailed the Bank of France had cut its swap draw­ in July, and the Bank of England further ings from the Federal Reserve to $306 mil­ reduced its drawings on the Federal Re­ lion from the November peak of $611 mil­ serve. The basic situation was still of con­ lion and had repaid credits drawn from cern to the market, however, as the trade other European Economic Community figures failed to show the expected gains and (EEC) countries and the BIS. hostilities in the Mideast intensified. Thus As these induced reserve inflows tapered sterling was vulnerable to the uncertainties off, however, the current-account deficit resulting from the devaluation of the French again began to drain French official re­ franc on August 8. The spot sterling rate serves. Apart from the weakening reserve dropped sharply, and pressures became sub­ position, a number of background factors stantial on August 13 with the release of were cause for continuing concern. Infla­ figures showing an enlarged British trade tionary pressures were still in evidence, and deficit. But once again, more sterling had large unresolved wage demands were a po­ been sold than the market could deliver, tential threat to the international competi­ and in subsequent days speculators paid tive position of the franc. At the same time, high prices to cover short sales. At the end recalling the November 1968 conference at of August Bank of England drawings on Bonn, the market remained fearful of a the Federal Reserve swap arrangement possible currency realignment involving stood at $975 million. By then the market both the German mark and the French had calmed, although the spot rate re­ franc. These uncertainties kept the franc mained near its floor and forward discounts market off balance, and in spite of tight ex­ continued wide. change controls, the franc remained in an exposed position. FRENCH FRANC New fears of devaluation emerged on The French franc had come under heavy March 6 when the French trade union lead­ speculative attack during the massive rush ership dramatized its wage claims by calling for German marks in November 1968, and a general strike for March 11. The strike the Bank of France had sustained large re­ call triggered the heaviest burst of selling serve losses in support of the franc at its since November 1968. The devaluation floor. In the aftermath of that assault, the scare receded almost as quickly as it had Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 707 arisen, however, when the general strike market were receding, speculation on a pos­ was orderly and, as scheduled, lasted only sible revaluation of the German mark and one day. Although it appeared that the on adjustments in other currency parities unions were not yet prepared to force the burst upon the markets. Demand for Ger­ issue on wage claims that far exceeded the man marks swept through exchange centers official guidelines, uncertainties persisted all over the world and the franc again came through the end of March and the official under heavy pressure, as the speculative reserves were subject to further erosion. Ac­ wave rose to a crest on May 9. Forward cordingly, the Bank of France made new franc rates declined precipitously, with 3drawings on the Federal Reserve swap line, month contracts quoted at discounts as wide raising its swap obligations to $461 million as 32 per cent per annum before the for­ by the end of March, and sold $50 million ward market temporarily dried up com­ of gold to the Treasury. pletely. The speculative fever showed no Early April brought a brief respite from sign of abating until the German Govern­ pressure, and the Bank of France was able ment announced late on Friday, May 9, to repay $25 million of its swap drawings that it would not revalue the mark. That from the Federal Reserve, but selling of announcement relieved the immediate pres­ francs soon resumed before the Easter holi­ sure in the exchange markets, and on the days. Near the middle of April a new ele­ following Monday, as the spot franc moved ment of doubt suddenly was injected into up from its floor in response to market cov­ the situation by President de Gaulle’s deci­ ering of speculative short sales of francs, the sion to stake his political future on a favor­ Bank of France began to recoup some of its able vote in a constitutional referendum on losses. April 27. At the same time, news of a large Although the latter part of May was a trade deficit in March underscored the diffi­ quieter period for the franc, the impending culties involved in restoring the franc to a presidential elections, scheduled for June 1 position of strength. Market tensions in­ and June 15, aroused renewed uneasiness. creased with the approach of the referen­ Mr. Georges Pompidou’s impressive vic­ dum date. The Bank of France met the tory in the elections was seen by the market prsssure in both the Paris and New York as assuring the continuity of stable govern­ markets, at heavy cost to its reserves. ment in France, but there remained an over­ As was to be expected, the news of Presi­ riding concern for the viability of the parity. dent de Gaulle’s referendum defeat and of Sharply rising Euro-dollar rates also aggra­ his immediate resignation from office gen­ vated strain on the franc. On June 13 the erated still heavier selling pressure on April Bank of France countered some of the pull 28. The selling soon began to fade, how­ from the Euro-dollar market and reinforced ever, as it became clear that France’s calm its anti-infiation program by raising its dis­ response to President de Gaulle’s with­ count rate a full percentage point to 7 per drawal from office presaged an orderly cent. Even so, during June the franc re­ transfer of governmental authority. More­ quired further sizable official support. over, the market quickly concluded that no Tn view of the heavy strain on the official official decision on the franc parity was reserves, the Bank of France made substan­ likely before the formation of a new gov­ tial drawings on its credit lines during the ernment in June. second quarter of 1969. The bank drew Just as the uncertainties in the franc heavily on international assistance available Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

708 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 under the November 1968 package, includ­ valued—weakening French competitiveness ing the full $200 million provided by the in world markets. The Minister made clear U.S. Treasury. France also sold $275 mil­ that devaluation would be backed up by lion of gold to the U.S. Treasury in the credit restrictions, continuation of exchange second quarter. In order to avoid an undue controls, and a tightening of France’s eco­ prolongation of credits outstanding under nomic policy to produce a balanced budget the Federal Reserve swaps, the Bank of in 1970. For the rest of the month of France used part of the proceeds of these August the franc held firmly above its new gold sales, and some of the new drawings par, and the Bank of France began to ac­ on the November 1968 credit, to liquidate cumulate dollars as a steady reflow of funds its obligation to the System. During the to France developed. second quarter the Bank of France repaid At the end of August the French Govern­ the total of $461 million outstanding on the ment announced that it had $1.6 billion of swap line, so that the $ 1 billion facility was international credits available and was ap­ restored to a fully available standby basis. plying to the IMF for a facility of $985 The underlying situation remained un­ million. As promised in early September the changed as the summer progressed. Al­ authorities strengthened their austerity pro­ though the exchange market received fa­ gram with further curbs on consumer credit, vorably the new cabinet appointments of measures to encourage savings, and sub­ President Pompidou, and the vacation pe­ stantial cuts in public spending. A tempo­ riod contributed to quieter markets, the rary price freeze imposed immediately after franc remained weak. Faced with a con­ devaluation will be replaced by strict offi­ tinuing attrition of official reserves, the cial surveillance of domestic prices. Minis­ French Government announced on August ter Giscard d’Estaing declared that the new 8 that it had decided to devalue the franc, measures were designed to bring the French rather than impose too severe a deflation trade balance into equilibrium by July 1, 1970. ' on the French economy. The 11.1 per cent devaluation, to a new parity of $0.180044, had been discussed at the Group of Ten BELGIAN FRANC meeting of Finance Ministers in November The Belgian franc was weak during the first 1968 at Bonn and was judged to be within quarter of 1969, largely as a result of capi­ the limits that could be accommodated by tal outflows to the Euro-dollar market. the existing framework of exchange rates. Early in the year the Belgian National Bank Explaining the reasons for the devalua­ provided occasional support to the market tion, the French Minister of Finance and and drew a net of $33 million on the swap Economic Affairs, Giscard d’Estaing, noted facility with the Federal Reserve to help that French reserve losses had averaged cover market losses—thereby raising its $500 million a month in the second half of outstanding swap indebtedness to $40.5 1968 and $300 million a month in the first million. A temporary easing of market pres­ half of 1969. Thus, France was faced with sures in February enabled the Belgian au­ the prospect of seeing its reserves dwindle thorities to repay $27.5 million of these to practically nothing by the end of the drawings, but by the end of March they year. Moreover, he said, further defense of again had to provide support to the franc as the former par value against international the outflow of funds accelerated. On March speculation would have left the franc over­ 31 the drawings of the Belgian National Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 709 Bank on the Federal Reserve stood at $23 Moreover, on May 29, the Belgian National million. Bank raised its discount rate by a further Vz With little prospect that the demand for percentage point, to 6 per cent. The Na­ funds in the Euro-dollar market would soon tional Bank was able to purchase sufficient abate, and with domestic credit expanding exchange to reduce its outstanding swap at an excessive rate, the Belgian National obligation to the Federal Reserve by a net Bank raised its discount rate to 5’A per cent of $61.5 million to $114 million by the end on April 10, the second Vi percentage point of June. increase in a month. To further relieve pres­ The franc generally stayed firm in July as sures on the franc rate, the authorities rein­ Euro-dollar rates eased and there was also forced this measure by instructing the Bel­ a modest commercial demand for francs, gian banks to repatriate a portion of their but market conditions did not permit sig­ net foreign exchange assets in several stages nificant reserve gains by the National Bank. by the end of June. These measures were At the end of the month the authorities followed by an immediate firming of the moved further to reinforce both the curbs franc, and by late April the rate had ad­ on domestic monetary expansion and the vanced to par. efforts to reduce capital outflows. The Bel­ But the strength was short-lived, as the gian National Bank raised its discount rate worldwide rush for marks in early May gen­ by a full percentage point to 7 per cent and erated heavy sales of francs along with other abolished its preferential discount rates for currencies. The spot rate declined sharply, export credits extended by Belgian banks to and the Belgian National Bank sold large countries outside the EEC. These preferen­ amounts of dollars to support the spot franc tial rates had tended to shift financing of at its floor. The National Bank covered the other countries’ trade to Belgian financial heavy losses by further drawings on the markets rather than to stimulate Belgian ex­ Federal Reserve swap line. Although pres­ ports and consequently had added to the sures eased after the German Government strain on the franc. rejected 4 mark revaluation, there was no By this time the Belgians had been mak­ important immediate reflux of funds, and at ing use of the Federal Reserve swap facility mid-May the Belgian National Bank’s out­ to some extent for a period of 10 consecu­ standing obligations under the swap line tive months. In keeping with the principle stood at $175.5 million. (During the month that wherever possible the use of central the swap facility was increased by $75 mil­ bank credit should not be unduly pro­ lion to $300 million in order to restore the longed, the Belgian authorities decided to earlier parity between that line and the fa­ utilize some of the resources previously ac­ cility with the Netherlands Bank.) cumulated by them with the IMF to repay Subsequently, as the exchanges calmed the swap drawings. Consequently, the Bel­ further, the Belgian franc began to gians drew $116.5 million from the IMF, strengthen. Although there were occasional representing the credit available to Belgium moderate outflows to the Euro-dollar mar­ as a result of IMF use of Belgian francs ket through shifts of nonbank funds, the under the General Arrangements to Borrow franc was reasonably well insulated from plus part of the Belgian gold tranche. The the heavy pressures in that market in May Belgian National Bank used nearly all the and June by the directive regarding the proceeds to liquidate completely its $114 commercial banks’ foreign asset positions. million swap obligation outstanding to the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 Federal Reserve. The $300 million facility Reserve use of the swap line since April then reverted to a standby basis. 1968. In the wake of the uncertainties created The flurry of demand for guilders soon by the devaluation of the French franc on ended and the market calmed; with Euro­ August 8, the Belgian franc came under re­ dollar investments remaining attractive, the newed pressure. The spot rate dropped to its spot guilder eased once again. Outflows of floor, and in the first week following the funds from the Netherlands were small, French move the Belgian National Bank however, since the domestic money market suffered substantial reserve losses. To re­ was still tight. In early April liquidity con­ plenish its reserves, the National Bank re­ ditions in Amsterdam eased and short-term activated its swap line with the System, capital outflows increased. The Netherlands drawing $244 million. With the passing of Bank sold dollars in support of the spot another weekend a calmer atmosphere guilder rate and then replenished its dollar emerged, and as the franc strengthened balances by selling $20 million equivalent markedly the authorities began recouping of guilders to the Federal Reserve. The Sys­ some of the reserve loss. In late August tem used the guilders to reduce its outstand­ Belgium repaid $20 million of the outstand­ ing swap drawings from the Netherlands ing drawings—reducing the total to $224 Bank to $20 million equivalent. million. Then at the month-end it was an­ Although the pressure on the guilder re­ nounced that the reciprocal credit facility flected mainly the high interest rates in the with the Federal Reserve was being in­ Euro-dollar market, inflationary price in­ creased by $200 million to $500 million creases in the Netherlands also began to and that the Belgian National Bank had ob­ threaten the guilder’s underlying position. tained a $100 million equivalent credit Accordingly, on April 8 the Dutch Govern­ facility from the German Federal Bank. ment imposed a price freeze, and the Nether­ lands Bank announced a 16 percentage DUTCH GUILDER point increase in its discount rate to 5’A The international payments position of the per cent, both to reinforce domestic anti- Netherlands was about in balance on cur­ inflationary policies and to reduce the in­ rent account during early 1969, but the spot centive to move Dutch funds abroad. Fol­ guilder rate fell below par as short-term lowing these measures, the guilder market funds flowed to the relatively high-yielding generally remained in equilibrium in the Euro-dollar market. At the beginning of latter part of April, and the Netherlands March the Dutch money market tightened, Bank discouraged covered outflows through and on March 6 the flare-up of currency modest swap purchases of dollars against fears surrounding the French franc and forward sales—thus widening the forward German mark brought an upswing in the premium on the guilder. guilder rate in sympathy with the mark. As Near the end of April and in early May, Dutch funds were repatriated, the Nether­ however, the initial shock waves emanating lands Bank purchased dollars to slow the from a new eruption of mark revaluation advance. On March 12 the Federal Reserve fears began to hit the guilder. On May 8 the drew $40 million of guilders from the spot rate dropped to its floor, and the Netherlands Bank and used the guilders to Netherlands Bank provided support that purchase an equivalent amount of dollars day as the rush for marks reached major from that bank. This was the first Federal proportions. Following the German Gov- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 711 ernment’s announcement on May 9 that the the guilder continued through June, and the mark would not be revalued, speculative Netherlands Bank drew further on the swap pressures lifted throughout the exchanges line to ease the drain on its reserves. At the and the spot guilder moved up from its end of June the bank’s outstanding swap floor. drawings on the Federal Reserve totaled The support operation had reduced the $82.2 million. dollar position of the Netherlands Bank, Accordingly, in early July the Dutch which then replenished its holdings by sell­ authorities took measures to prevent the ing the System $20 million equivalent of pull of interest rates abroad from imposing guilders. The System used the guilders to a prolonged strain on local interest rates, liquidate completely its outstanding swap domestic liquidity, and official reserves. drawing from the Netherlands Bank, and on After discussions with the Dutch commer­ May 12 the entire facility reverted to a cial banks, the Netherlands Bank requested standby basis. Meanwhile, consultations that they reduce their net foreign exchange had been taking place among the Federal positions by 10 per cent during the latter Reserve, the Netherlands Bank, and the Na­ half of 1969. Nevertheless, the pressures tional Bank of Belgium with a view to re­ continued, and with the guilder requiring storing the previous equality of the Federal further official support, the Netherlands Reserve swap lines with those two banks. Bank drew again on the swap facility. On May 15 the System’s swap facility with In the latter part of July the pressure on the Netherlands Bank was lowered by $ 100 the spot guilder began to ease, as Euro­ million to $300 million while, as previously dollar rates dropped and Euro-guilder rates noted, the line with the National Bank of rose to levels that discouraged further shifts Belgium was increased from $225 million of liquidity into dollars. At the same time to $300 million. Dutch commercial banks began to repatri­ Later in May the Netherlands Bank was ate funds in compliance with the earlier able to purchase in the market a moderate official request, thus adding to the demand amount of dollars on a swap basis. These for guilders. Consequently, the spot rate transactions not only reduced the incentive was firmer and the support operations of the to move funds abroad by increasing the Netherlands Bank tapered off. However, the premium on the forward guilder, but also Netherlands Bank delivered a sizable relieved liquidity stringencies in the Am­ amount of dollars to the market in connec­ sterdam market. tion with maturing forward contracts, and Higher Euro-dollar rates brought re­ it drew further on the swap facility with the newed selling of guilders starting at the end System to replenish its reserves. By the end of May. With Euro-guilder rates at rela­ of July, outstanding drawings by the tively low levels, there was an incentive to Netherlands Bank on the Federal Reserve borrow in guilders; as funds flowed out of swap line had reached a total of $192 the Netherlands through such transactions, million. the spot rate again declined to its floor dur­ On August 1 the Netherlands Bank an­ ing the early part of June. As a result, the nounced an increase in its discount rate by Netherlands Bank was obliged to provide a !4 percentage point (to 6 per cent) and in substantial amount of support and by June its other rates by 1 percentage point as an 12 found it necessary to reactivate its swap adjustment to the rise in domestic and for­ facility with the System. Selling pressure on eign interest rates. Following these increases Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 the spot guilder moved up sharply, as the quired to liquidate the residual $40 million higher interest rates in the Netherlands fur­ obligation outstanding under the swap line. ther discouraged outflows of funds. The spot On April 29 the U.S. Treasury issued to the guilder soon moved above par, and the Swiss National Bank a 15-month, Swiss Netherlands Bank began adding to its re­ franc-denominated note equivalent to $39.5 serves. Later in the month the Netherlands million. The Treasury sold the francs to the Bank repaid $82.2 million of drawings out­ System, which used them, along with a standing on the swap facility, thereby re­ small amount of francs in balances, to liqui­ ducing the amount outstanding to $109.7 date the obligation. On April 30, however, million. During the remainder of August in view of the eruption of new uncertainties the market was quiet and the guilder was regarding currency parities, the Swiss Na­ firm. tional Bank requested the System to reacti­ vate the swap line to provide cover for $100 SWISS FRANC million of the funds that had come into its In early 1969 the seasonal reflux of funds reserves at the end of the first quarter. from Switzerland was accentuated by the In early May the rush for German marks pull of high interest rates in the Euro-dollar began pulling funds from Switzerland, and market. The Swiss franc rate declined and as the franc rate declined, the Swiss Na­ the Swiss National Bank sold a large tional Bank sold a small amount of dollars. amount of dollars, providing the Federal These pressures subsided when the German Reserve with the opportunity to purchase Government rejected a revaluation of the $190 million of francs from the National mark, but the pull of the Euro-dollar mar­ Bank. The System used these francs, to­ ket on Swiss franc funds grew stronger dur­ gether with some in balances and additional ing the remainder of May. As the Swiss francs obtained in nonmarket transactions franc weakened, the Federal Reserve was (see the Bulletin, March 1969, pages able to accumulate a small amount of francs 222-23) to reduce its outstanding swap in market transactions, and it reduced its debt to the Swiss National Bank by $280 outstanding swap obligation by $5 million million to $40 million equivalent as of the equivalent to $95 million on May 28. end of February. Swiss banks added substantially to their The flow of excess liquidity from Switzer­ Euro-dollar assets during June—offsetting land tapered off by early March, however, the large Swiss balance of payments surplus and the Swiss franc strengthened in re­ on current account. At midyear, in particu­ sponse to a brief flare-up of currency un­ lar, the heavy pull from the Euro-dollar certainties surrounding the French franc market had a strong effect on Swiss banks’ and German mark. The franc rate did not portfolio decisions, as the banks preferred reach its official ceiling until late in the to reduce their seasonal repatriation of month, when the Swiss commercial banks funds rather than forego the high yields on began to repatriate funds to cover their Euro-dollar placements. Moreover, the usual end-of-quarter needs; with the rate at Swiss National Bank, while again offering the ceiling the Swiss National Bank took in market swap facilities to bridge the quarter­ $244 million. Despite the strong pull of end, limited such facilities to no more than Euro-dollar rates, there was little reflow of $250 million. For the balance of their li­ funds after the quarter-end. In these cir­ quidity needs the Swiss banks rediscounted cumstances a special transaction was re­ an unusually large volume of eligible paper Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 713 with the central bank. Following past prac­ spurred withdrawals of foreign and domes­ tice, the Swiss National Bank rechanneled tic funds, both through normal channels and to the Euro-dollar market the dollar pro­ through the export of Italian bank notes. ceeds of its market swap purchases of dol­ Italian lire consequently were heavily of­ lars, so that over-all there was no drain on fered in the foreign exchange markets, and the Euro-dollar market from the midyear the Bank of Italy provided substantial sup­ positioning of the Swiss banks. port for the lira while allowing the rate to Through July the Swiss franc market was drop sharply below par. quiet, and during the month the Federal In view of the continued outflow from Reserve liquidated completely its outstand­ Italy during the early spring, the Italian ing $95 million swap drawing on the Swiss authorities took several steps to protect the National Bank. The System acquired $5 official reserves and to alleviate the growing million of Swiss francs in the market and, strain on Italian capital markets. Italian against the background of generally calm banks were asked to repatriate by midyear exchange markets and some Swiss Govern­ an amount of foreign exchange equivalent ment need for dollars, purchased a total of to their net foreign assets (then about $800 $60 million equivalent of francs directly million). Long-term investment flows from the Swiss National Bank. The remain­ abroad were restricted: (1) by temporarily ing $30 million of francs needed to repay suspending official permission for Italian the swap drawing was obtained from the banks to participate in underwriting con­ U.S. Treasury, which had issued to the sortia for foreign securities, except for those Swiss National Bank a Swiss franc-denomi­ issued by institutions with large financial nated certificate of indebtedness for the interests in Italy and (2) by subjecting same amount. By July 17 the $600 million Italian residents to strict regulations on pur­ facility reverted to a fully available standby chases of investment fund shares and on basis. other transactions involving capital trans­ On July 24 the Treasury purchased from fers abroad. Along with these measures, the the Swiss National Bank sufficient Swiss authorities moved to reduce excess domestic francs to liquidate $53.2 million equivalent liquidity and to align Italian interest rates of a maturing $152.6 million certificate of more closely with those abroad. indebtedness held by the BIS; the balance The cumulative impact of these measures of the certificate was rolled over. brought the lira rate above par by late Trading in Swiss francs remained quiet April, and the Bank of Italy purchased in August, with only a minimal reaction to some dollars. The recovery ended, however, the devaluation of the French franc. The with the new eruption of mark revaluation spot rate continued very strong but held be­ fears. Italian residents joined the specula­ low the ceiling, and there was no need for tive rush for marks and also sold lire in official intervention. order to cover the commitments in German marks, and to some extent in Swiss francs, ITALIAN LIRA that they had undertaken because of rela­ During the early months of 1969 the up­ tively low interest rates in Germany and ward surge of interest rates in the Euro­ Switzerland. The spot rate dropped to its dollar and Euro-bond markets resulted in official floor, and the Bank of Italy provided heavy outflows of funds from Italy. More­ substantial support through May 9. over, domestic political uncertainties Once the speculation in marks subsided, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 the lira market improved and during the TABLE 4 late spring and early summer there was U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES some reflow from German marks. This re­ In millions of dollars equivalent flow, combined with repatriations of funds by Italian banks acting under the official re­ Issues, or redemptions ( —) quest to eliminate their net foreign asset Out­ Out­ stand­ stand­ positions, more than offset the further out­ Issued to— Ja in n g . , I, 1969 Se i p n t g . , 1 0, 1969 1969 flow of Italian capital via export of Italian July 1- Sept. 10 currency. Effective July 1, the Bank of Italy reinforced its defensive measures by impos­ Austrian National Bank.................... 50.3 -25.21 25.1 ing a penalty rate of U/2 points above its German Federal bank, 1,176.3 1-50.0 I,199.7 discount rate of 3*/2 per cent for banks German banks........... 125.1 125.1 Bank of Italy............... 225.6 -100.21 125.4 making excessive use of central bank Swiss National Bank . . 444.7 25.4 39.5 30.0i 540.6 Bank for International Settlements2............. 207.7 49.7 -53.2: 204.1 borrowing. New uncertainties unsettled the lira mar­ Total.................... 2,229.7 25.2 113.8 -148.6 2,220.1 ket with the fall of the Italian Government 1 In addition, on Jan. 16, 1969, the U.S. Treasury issued a medium­ in early July. Despite the subsequent for­ term security in place of a certificate of indebtedness purchased by the German Federal Bank on Dec. 27, 1968. mation of a new government, a strong 2 Denominated in Swiss francs. Note.—Discrepancies in totals are due to valuation adjustments undercurrent of apprehension persisted. and roundings. When the French franc was devalued, the CANADIAN DOLLAR spot rate dropped to its floor, and during Canada’s trade position remained relatively the next few days of exchange market un­ strong in the first half of 1969—though the certainties lire were offered in heavy vol­ surplus was much lower than in 1968—and ume, with the Bank of Italy extending Canadian residents continued to borrow sizable support. On August 14 the Bank of heavily in the U.S. capital market. As the Italy raised its discount rate to 4 per cent, year progressed, however, the Canadian and as the speculative pressures subsided dollar, like other major currencies, was in­ the lira firmed. It held well above the floor creasingly affected by short-term capital through the end of August. outflows in response to the high and rising In August the Italian authorities re­ level of interest rates in the United States plenished their dollar balances by encash­ and in the Euro-dollar market. ing prior to maturity a $100.2 million One of the principal channels for these equivalent lira note issued by the U.S. outflows was the growth of so-called Treasury to the Italian Exchange Office in “swapped deposits” with Canadian banks. late 1968 in conjunction with its under­ In these transactions, deposits in Canadian standing with Italy on the neutralization of funds are converted into U.S. dollars on a U.S. military expenditures. During the pe­ covered basis. Using the dollars thus ob­ riod under review the U.S. Treasury re­ tained, Canadian banks acquired a substan­ duced moderately its technical forward lira tial amount of short-term assets directly commitments that have arisen in connection from U.S. banks in forms not subject to with dollar/lira swaps extended by the Regulation Q. Some of the U.S. dollar pro­ Italian Exchange Office to its commercial ceeds also were invested in the Euro-dollar banks. The remaining commitments have market, although placements were limited been rolled over periodically as they came by Canadian official directives issued in due. 1968 (in conjunction with Canada’s ex- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 715 emption from all U.S. balance of payments These measures curtailed the short-term programs) to prevent Canadian financial in­ capital outflow, and the spot rate quickly stitutions from acting as a “pass-through” moved up above par, where it held through channel. August. The pull of abnormally high yields on U.S. dollar instruments not subject to Regu­ OPERATIONS IN OTHER CURRENCIES: lation Q contributed to a sharp rise in out­ DANISH KRONE AND AUSTRIAN standing swapped deposits during the spring SCHILLING and summer months. The large short-term In January the Danish National Bank had outflows from Canada resulting from these drawn $25 million on the swap facility with transactions and other Canadian invest­ the Federal Reserve; this drawing was re­ ments abroad were largely offset by a sur­ paid in March. Subsequently, the Danish plus on current and long-term capital ac­ krone was brought under pressure by counts combined, and by a compensating sharply higher interest rates abroad, as short-term capital inflow from the United Danish commercial firms shifted part of States. American investors, seeking outlets their borrowings from international to do­ not subject to Regulation Q and discour­ mestic markets. The Danish National Bank aged by the U.S. balance of payments pro­ suffered a sizable reserve drain in support­ gram from taking advantage of the high ing the krone rate and, in the latter part of rates available in the Euro-dollar market, April, drew $50 million under the $100 moved short-term funds to Canada. million Federal Reserve swap arrangement. Such investments were attractive because Even greater outflows from Denmark oc­ the covered outflows from Canada gen­ curred as speculation on the mark devel­ erated equally heavy demand for Canadian oped in late April and early May. To bolster dollars in the forward market, and as a re­ its reserves, the National Bank drew the re­ sult, the forward rate moved out to a sub­ maining $50 million under the Federal Re­ stantial premium. This premium increased serve swap facility and drew $45 million the attraction of covered investments in under the Danish gold tranche with the Canada, where interest rates were rising, IMF. With the regular swap line with the not only in line with the increase in rates Federal Reserve fully utilized, the U.S. abroad, but also as a result of the tightening Treasury provided a supplementary standby in Canada’s anti-inflation program. This facility for $50 million. Danish authorities tightening included a 16 percentage point also took several measures to stem the out­ increase in the Bank of Canada’s discount flow—including an increase of 2 percentage rate to 716 per cent on June 11. points in the discount rate to 9 per cent. By early July, however, the spot Cana­ Thus reinforced, the krone firmed after dian dollar had dropped below par as a the German Government rejected revalua­ result of the overriding effect of short-term tion, and in June the Danish National Bank capital outflows. To restrain such short­ was able to repay the full $100 million of term outflows, the Bank of Canada asked swap drawings on the Federal Reserve. the Canadian banks to regard the existing During the summer the market was calm level of their swapped deposits as a tem­ and although the krone remained somewhat porary ceiling and, effective July 16, an­ below par, it was not adversely affected by nounced a further 16 percentage point in­ the devaluation of the French franc. At the crease in its discount rate to 8 per cent. end of August, the $100 million Federal Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 Reserve swap facility and that for $50 mil­ 3 I YIELD COMPARISONS: 3-month maturities lion from the U.S. Treasury remained fully PER CENT available. The Austrian National Bank also lost re­ serves during the international rush into marks and in late May drew $50 million under the Federal Reserve swap facility—• its first drawing since the arrangement was established in 1962. During the summer tourist season the National Bank began to accumulate reserves, and in August it fully liquidated its $50 million swap drawing. Furthermore, in early summer it was agreed that the Austrian National Bank would en­ cash prior to maturity a $25.2 million equivalent outstanding U.S. Treasury secu­ rity denominated in Austrian schillings. EURO DOLLAR MARKET During the spring and early summer of 1969, the Euro-dollar market was subject to sure, and in the summer months the Board unprecedented credit demands, generated in of Governors of the Federal Reserve Sys­ large part by the effects of increasing mone­ tem issued amendments to its regulations in tary restraint in the United States. Through­ order to reduce the attractiveness of Euro­ out this period the large U.S. banks experi­ dollars to U.S. banks. enced sizable and sustained losses of time In February U.S. banks increased their certificates of deposit (CD’s), as the ceiling borrowings through their foreign branches on bank time deposit rates under Regula­ in the Euro-dollar market only marginally tion Q remained well below market rates on from the $8.5 billion level at the end of alternative short-term investments. At the January (Chart 4). Nevertheless, with the same time U.S. banks faced a continued ex­ heavy outflow of short-term funds from pansion of business loan demand. Germany tapering off and French commer­ In an effort to offset the deposit losses cial banks withdrawing funds from the mar­ and to meet the loan demand, many of the ket, Euro-dollar rates moved sharply higher, larger commercial banks resorted to the with the rate on 3-month deposits rising Euro-dollar market—borrowing heavily almost 1 percentage point to just under 816 through their overseas branches. In the per cent by the end of February. Then early process Euro-dollar rates rose steadily in March, in anticipation of higher demands through mid-June (Chart 3), reaching his­ for loans in connection with the March 15 toric highs and attracting funds from for­ corporate tax date, U.S. banks began to bid eign financial centers and from the United more aggressively for Euro-dollars and by States. In response to these developments, midmonth their aggregate dollar borrow­ several countries moved to protect their do­ ings through foreign branches had reached mestic money markets and their interna­ a new peak of $9.7 billion. Interest rates, tional reserves from the Euro-dollar pres- however, were not substantially affected; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 717 with the 3-month rate around 8U2 per cent, —put very strong pressures on the Euro­ funds were attracted from a great many dollar market. As huge amounts of funds money markets. Indeed, several European moved into marks and U.S. banks at­ central banks increased their discount rates tempted to maintain the level of their Euro­ late in February and in March, as pressures dollar borrowing, Euro-dollar rates jumped on their reserves mounted and domestic sharply, with the call rate bid up to 10 per short-term rates rose. cent per annum by May 8. Following the Meanwhile, the growing stringency in German Government’s rejection of a mark U.S. financial markets caused commercial revaluation, rates declined briefly. banks in this country to raise their prime In June there was a heavy surge of bor­ rate, on March 17, to 7’/2 per cent, from 7 rowing by U.S. banks in the Euro-dollar per cent. Moreover, in early April Federal market. During the first 3 weeks of the Reserve discount rates were increased by U2 month, when the runoff of CD’s was par­ percentage point to 6 per cent and reserve ticularly severe, the liabilities of banks to requirements against demand deposits were their foreign branches rose more than $3 raised. The impact of these measures was billion, to $13 billion, and generated ex­ quickly transmitted to European money treme pressures on Euro-dollar rates. On market centers, and three central banks fol­ June 10—the day after U.S. banks had lowed the Federal Reserve move by raising raised their prime loan rates by a full per­ their discount rates in April. Furthermore, centage point to 8U2 per cent—the Euro­ in March the Italian authorities, and in dollar call rate rose to 11U2 per cent and early April the Belgian authorities, imposed the 3-month rate was bid up to 13 per cent. restrictions on their commercial banks’ net The market withstood the high rates with­ foreign asset positions, in effect requiring out serious dislocation, and rates actually the banks to repatriate funds from the eased somewhat once preparations for the Euro-dollar market. mid-June U.S. corporate tax date were The fresh outbreak of speculative activity completed. in the foreign exchange markets in late Throughout this period there was evi­ April and early May—especially the expec­ dence that U.S. funds were being drawn into tation of a revaluation of the German mark the Euro-dollar market. Yet, toward the end of the month, there were indications * LIABILITIES OF U.S. BANKS 4 TO FOREIGN BRANCHES that U.S. corporations pulled substantial amounts of dollar balances and other for­ BILLIONS OF DOLLARS 16 eign currency deposits out of Europe, only to redeposit these funds early in July fol­ lowing the month-end reporting date under 12 regulations issued by the Commerce De­ partment’s Office of Foreign Direct Invest­ ments. At the same time, midyear window dressing by continental European commer­ cial banks was on a much smaller scale than in past years. In July the demand by U.S. banks for III I I I I I I I I 4 SEPT. NOV. JAN. MAR. MAY JULY SEPT. Euro-dollars continued at a high level, 1958 1969 though the increase in the banks’ liabilities Data as of Wednesday of each week. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

to their branches, which reached $14.3 bil­ per cent of the $11.6 billion decline of out­ lion on July 30, proceeded at a much slower standing negotiable CD’s during the same pace than in June. Euro-dollar rates de­ period. clined substantially throughout July, and by In the light of the heavy reliance of some the end of the month, call money was bid at U.S. banks on Euro-dollar borrowings and 9 per cent and 3-month deposits at 10%« the repercussions on foreign monetary re­ per cent. The market continued to attract serves and financial markets, the Board of substantial amounts from several European Governors of the Federal Reserve System financial centers, and additional central took a series of measures in order to mod­ banks took steps to protect their domestic erate the flow of Euro-dollars to U.S. banks. money markets and monetary reserves from First, the Board amended Regulation D the pull of high Euro-dollar rates. (which governs reserves of member banks) The devaluation of the French franc on so as to eliminate a technical loophole that August 8 triggered new pressures in the had led banks to increase their use of over­ Euro-dollar market. The 3-month Euro­ night borrowings of Euro-dollars. Subse­ dollar rate jumped to 11 per cent by quently, the Board amended Regulation D August 12 and moved irregularly around and Regulation M (which governs the for­ that level through the rest of the month. At eign activities of member banks) by placing the end of August the liabilities of U.S. a marginal reserve requirement of 10 per banks to their foreign branches had risen cent on Euro-dollar takings by member to $14.6 billion, a $7.4 billion increase over banks and on U.S. assets acquired by for­ the November 27, 1968, level, offsetting 64 eign branches from their home offices. □ 718 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Statement to Congress Statement by William McChesney Martin, It would be desirable to grant this author­ Jr., Chairman, Board of Governors of the ity to the Federal agencies on a permanent Federal Reserve System, before the Subcom­ basis, rather than just extending it for mittee on Financial Institutions of the Com­ another year. This recommendation does mittee on Banking and Currency, U.S. not arise from a belief that we should con­ Senate, Sept. 10, 1969. tinue indefinitely regulating the rates that financial institutions may pay on time and I appreciate your invitation to present the savings deposits. On the contrary, our longviews of the Board of Governors of the Fed­ run objectives should be to suspend these eral Reserve System on S. 2577. Of most ceilings when that can safely be done, in immediate concern are the provisions of Sec­ order to increase the prospects for achieving tion 1 of the bill, which extend for an addi­ a more efficient use of our financial re­ tional year the flexible authority originally sources, and to provide greater rewards to granted by the Congress to the Federal agen­ savers for their contribution to financing in­ cies in 1966 to regulate rates of interest paid vestment. To the maximum extent possible, on time and savings accounts of Federally the distribution of savings flows among com­ insured commercial banks, mutual savings peting financial institutions, and between banks, and savings and loan associations. financial institutions and the securities mar­ Unless renewed by Congress once again, as ket, should be determined by market forces, it has been in the previous 2 years, this rather than by administrative regulation. authority will soon expire. Permanent extension of the authority we The experience of the past 3 years has in­ now have for regulating these ceiling rates dicated that the authority first granted in would permit the Federal regulatory agen­ 1966 to distinguish between large money cies to make longer-range plans for moving market certificates of deposit and other time toward the ultimate objective of freer com­ and savings deposits in establishing ceiling petition for savings. Accordingly, the Board rates, and to bring the nonbank savings in­ recommends that you make this authority stitutions under the same type of rate regu­ permanent, rather than extending it for only lations as commercial banks, has been a 1 year. useful addition to our instruments of finan­ Section 2 of the bill would extend interest cial regulation. rate controls to savings institutions whose As the committee will recall, expiration deposits are not insured by a Federal agency. of the existing statutory provisions would Although we believe such an extension is reinstate the former law, under which ceiling within congressional powers, this would rates of interest on time and savings deposits represent a departure from the traditional were mandatory for insured banks. Under pattern of Federal regulation of deposit-type the present authority, ceiling rates may be institutions. Our ability to use monetary suspended by the regulatory authorities if policy as an economic stabilizing device has economic and financial conditions warrant not been seriously weakened in recent years such action. by the ability of the noninsured thrift insti- 719 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

720 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 tutions to pay higher rates than the insured bank to ensure a sustained flow of funds banks and savings and loan associations. into mortgages, the earlier proposals ran the But it does seem inequitable to permit some serious risk of committing the Federal Re­ institutions—solely because they are not serve System to undertake support programs Federally insured—to have a competitive to subsidize various sectors of the economy advantage in the markets for savings funds. as they may from time to time be pinched Moreover, sizable rate differentials, should by monetary restraint. Such programs, if they occur, could give rise to disruptive they are to be more than token gestures, effects in the distribution of fund flows would make it difficult if not impossible to among types of institutions and regions of carry out our primary role in economic the country. Consequently, the extension of stabilization. These objections, however, do interest rate controls along the lines of Sec­ not apply to borrowings from the Treasury. tion 2 of the bill would seem to be justified. The second principal change relating to Sections 3 and 4 would make two prin­ Federal home loan bank borrowings is con­ cipal changes in the provisions of the Fed­ tained in Section 4 of the bill, the effect of eral Home Loan Bank Act that govern which is to revoke the Treasury’s veto power financial relationships between the Treasury over open market borrowings by the Fed­ and the Federal Home Loan Bank Board. eral home loan banks. It would be hard to The first of these expresses the intent of justify this change on the grounds that it Congress as to the circumstances in which would place the Federal Home Loan Bank the existing authority for Treasury lending System on an equivalent status with other to the Federal Home Loan Bank Board Federal lending agencies. The lending agen­ should be exercised. The language suggests cies whose open market borrowings are not that direct Treasury support to the Federal subject to formal Treasury approval are all Home Loan Bank System, and through it farm credit agencies. The Treasury now to the markets for home financing, would maintains a close liaison with farm credit occur only infrequently and under relatively agencies in the scheduling of new security unusual circumstances, “. . . when alterna­ offerings even without a veto. However, the tive means cannot effectively be employed demands of the farm credit agencies on se­ . . . .” “Alternative means” would seem to curities markets—unlike those of the hous­ include the process by which the Federal ing agencies—are not characterized by Home Loan Bank Board normally raises massive swings from net repayment to net funds in the open market. The limited line borrowings as the economy moves from of credit with the Treasury thus would be periods of monetary ease to periods of mone­ used to backstop, rather than to replace, the tary restraint. It seems to the Board that the market as a primary source of funds. debt management problems of the Treasury This provision of the bill is a substitute could be magnified, and the smooth func­ for an alternative proposal considered last tioning of money and capital markets dis­ year that was also intended to supplement turbed, if the Federal home loan banks, as the flow of funds to housing in periods of well as the Federal National Mortgage Asso­ tight money. The Board was strongly op­ ciation, were not required to seek approval posed to that earlier proposal, because the from the Treasury before issuing securities means to be used would have entailed direct in the market. Accordingly, the Board does borrowing by Federal housing agencies from not recommend enactment of this provision. the Federal Reserve. By attempting to use Sections 5 and 6 of the bill deal with the credit-creating powers of the central regulatory authority to control the ability of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 721 member banks to attract lendable funds by year, and as liquidity positions were de­ issuing securities through affiliates or other pleted, the banks looked increasingly toward means, or by borrowing from foreign expansion in nondepositary liabilities to ob­ branches. There is a common thread to these tain loanable funds. The principal source of two sections. Both measures are concerned nondepositary funds this year has been the with the policy implications of nondeposit market for Euro-dollars. The larger city sources of funds to the banking system. It banks garnered roughly $8 billion from this might be worthwhile, therefore, to consider market between mid-December 1968 and rather generally what has been happening in the end of August 1969. this area this year, and the significance of In the spring months, when the costs of these developments for monetary policy, be­ Euro-dollars had soared to unprecedented fore turning to the specific provisions of levels and questions began to rise as to these two sections. whether the supply could continue to grow, As you know, it became necessary to the banks began to explore other new ave­ initiate a program of firmer monetary re­ nues for obtaining funds. The two important straint late in 1968 to combat the inflation­ sources have been issues of commercial ary forces that have been so pervasive in our paper through affiliated bank holding com­ economy during the past several years. By panies, and sales of existing assets under its very nature, a program of increased repurchase agreements. We first began gath­ monetary restriction operates through the ering data on these and other nondepositary banking system—slowing down the growth sources of funds in May of this year. It was rate of bank deposits, and thereby making learned that outstanding nondepositary less funds available for private spending. sources of funds (other than Euro-dollars) One of the important features of monetary late in May totaled about $2.5 billion. By restraint this year has been the effect on the the end of August, this figure had increased liquidity positions of larger banks resulting to about $4.5 billion. from the ceilings on interest rates payable We have been watching these develop­ on large-denomination CD’s. These ceilings ments closely to determine whether they have remained unchanged since April 1968, were undercutting our program of monetary even though yields on Treasury bills and restraint or having other undesirable effects other short-term securities that compete with on the structure of credit availability to CD’s in the money market have risen to businesses and other borrowers and there­ levels far above those of a year ago. The fore on the pattern and structure of output, larger banks, consequently, have experi­ or leading to inequities within the banking enced very large declines in their outstand­ system, or permitting the banks to escape ing CD’s. the effects of reserve requirement regulations Over the first 8 months of the year, out­ or ceiling rates of interest on deposits, or standing large-denomination CD’s at large leading to practices inconsistent with the city banks declined by about $10 billion. principles of sound banking. At the same This sharp descent put the banks under great time, we wanted to avoid unnecessary inter­ pressure to find methods by which they ference with the workings of financial mar­ could meet customer loan demands—includ­ kets, and we recognized that banks that were ing binding commitments previously made experiencing run-offs of CD’s needed a to businesses and other loan customers. safety valve—such as the Euro-dollar mar­ Sales of liquid assets by banks were ex­ ket—to help them adjust their positions, in tremely large in the early months of this order to avoid excessive strains in money Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 markets. All of these facets of the problem SELECTED INDICATORS OF MONETARY AND CREDIT EXPANSION have had to be considered very carefully. Per cent increase, at annual rates In some cases, it seemed to the Board that the banking practices developing were Item 1968 1969 Jan.-Aug. quite clearly in conflict with statutes and regulations prohibiting interest payments on Total member bank reserves......................... 7.9 -3.1 demand deposits and establishing ceiling Money supply (currency and demand deposits).................................................. 7.0 2.9 rates on time deposits. Board actions were Time and savings deposits at commercial taken, therefore, to close loopholes in exist­ banks...................................................... 11.3 -8.1 ing laws and to clarify and strengthen ap­ Money supply plus time and savings deposits................................................. 9.2 -2.7 plicable regulations. Credit proxy (total member bank deposits).. 9.0 -6.3 The most difficult issue to resolve, how­ Credit proxy, adjusted for Euro-dollar borrowing............................................... 9.8 -2.6 ever, has been the extent to which nondeposi­ Total bank credit, end of month................... II.0 2.2 tary sources of funds have been an escape hatch enabling the banks to frustrate the Note.—Annual rates of increase in percentage terms shown here for 1969 are computed on the basis of changes from Dec. 1968 to Aug. objectives of monetary policy, as opposed 1969. Aug. 1969 data are partly estimated. to a safety valve to ease adjustments in finan­ cial markets as policies of monetary restraint branches. Even if rough allowance is made were taking hold. On this general question, for loans that have been sold and are no there are differing shades of opinion among longer recorded in the balance sheet of the Board members, and the problem itself has banking system, the total quantity of funds changed in character as the scope and mag­ the banks have been able to supply to credit nitude of these new sources of funds has markets has still grown much more slowly grown. The consensus of the Board is that this year than in 1968. the devices used by banks to obtain non­ In considering the implications for mone­ depositary funds, while they have not made tary policy of these nondepositary sources it impossible to achieve the over-all objec­ of funds, it is important to note that acquisi­ tives of monetary policy, may have delayed tion of these funds by banks does not alter the impact of monetary restraint on spend­ total bank reserves. This is perhaps most ing. Furthermore, they have also had unde­ evident in the case of issues by banks of sirable effects on the distribution of mone­ commercial paper through holding compa­ tary restraint among the various sectors of nies. The issuing bank obtains funds by the the economy. sale of such paper, but some other bank The conclusion that these new devices loses funds as the buyer of the commercial have not completely undermined monetary paper draws on his deposit balance. Re­ policy is suggested by the data in the accom­ serves are transferred from one bank to panying table. We have succeeded in slow­ another in the system, but the total is not ing down the growth rates of all the major increased. A similar transfer of reserves oc­ money and banking quantities this year, curs when the funds attracted by Euro-dollar even though these loopholes have existed. borrowings represent deposits held by U.S. The growth rate of the money supply has residents that were previously transferred slowed, as has the growth of money and out of the U.S. banking system and into the commercial bank time deposits taken to­ Euro-dollar market in search of higher gether. Bank credit growth has also moder­ yields. ated despite the huge inflow of Euro-dollars The larger part of Euro-dollar borrow­ borrowed by banks from their foreign ings originates from increased holdings of Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 723 Euro-dollar deposits by private foreigners, These partial offsets are present even but there is no net addition to bank reserves when the funds being obtained by banks in the U.S. in this case either. This reflects come from Euro-dollar borrowings that rep­ the fact that increased private foreign hold­ resent increased holdings of Euro-dollar ings of Euro-dollar deposits occur essentially deposits by private foreigners. As noted at the expense of the dollar reserves of cen­ earlier, an increase in the dollar assets of tral banks abroad; the form of U.S. liquid private foreigners is at the expense of the liabilities to foreigners is changed but the dollar reserves of foreign central banks, and total of those liabilities is not altered. changes in central bank dollar holdings While nondepositary sources of funds do typically show up as purchases or sales of not add to total bank reserves, they may Treasury bills in U.S. credit markets. Attrac­ still be a matter of concern for monetary tion of private foreign deposits through the policy. If there are no reserve requirements Euro-dollar market does not, therefore, lead against nondepositary sources of funds, to an equivalent rise in the aggregate supply attracting these funds permits the banking of loanable funds in U.S. credit markets— system to increase the amount of total loans that is, the total supply of funds seeking in­ and investments it makes per dollar of re­ vestment in Federal as well as private obli­ serves. The Federal Reserve must take this gations. fact into account in the formulation of its These considerations suggest that the non­ open market policies. If it does so, growth depositary sources of funds used by banks in reserves can be slowed sufficiently to mod­ this year have not rendered monetary policy erate the increase in bank credit. ineffective in moderating the growth of pri­ In deciding what growth rate of reserves vate expenditures, but they may have de­ is appropriate, in the light of these new layed its impact somewhat, by permitting sources of funds available to banks, we have the banking system to increase its loans to had to consider not only the fact that bank businesses at too rapid a rate during the first customers gain more ready access to funds, 5 months of this year. The slowdown in but also the effects of the banks’ actions in over-all bank lending and investing capacity obtaining funds through nondepositary observed this year did not affect bank lend­ sources on the supply of funds available to ing policies as soon or as much as would finance spending outside the banking sys­ have been desirable. But as the year pro­ tem. When banks issue commercial paper gressed and pressures on bank liquidity in­ through holding companies, and make the proceeds available to businesses in the form tensified, an increasing number of banks be­ of loans, they draw funds from other mar­ gan to tighten their lending policies signifi­ kets, and thereby reduce the supply of loan­ cantly. Some evidence of this is appearing able funds available to other borrowers, in our recent banking statistics. In the period especially borrowers in short-term credit from June through August, the growth rate markets. This pushes up interest rates in of business loans at banks—even after al­ short-term credit markets, and indirectly in lowance for loans sold by banks and no other credit markets as well. The result is longer recorded on bank balance sheets— that at least part of the expansive effects on declined to about one half of the average private spending that are associated with monthly rate of increase in the first 5 months increased credit availability at banks are of this year. offset by reduced credit supply elsewhere in In addition to delaying the impact of the financial system. monetary restraint, these new devices used Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 by banks to raise funds have been undesir­ funds. Section 5 would add a provision to able on other grounds. For one thing these Section 19 of the Federal Reserve Act sources of funds have been available mainly authorizing the Board to limit the rate of to the larger banks in the system, and espe­ interest that may be paid on obligations cially to those who have branches abroad or issued by an affiliate of a member bank. The affiliated holding companies. Consequently, Board has examined the scope of its author­ the incidence of monetary restraint in the ity under present law to bring such paper banking system has been unevenly distrib­ within the coverage of its rules governing uted. Additionally, the amount of funds member bank reserves (Regulation D) and brought in by our banks through Euro-dollar payment of interest on deposits (Regulation borrowing has been so massive that it has Q). We believe that in this area certain threatened to disrupt the money and capital actions could be taken within the framework markets of our European trading partners of the present provisions of Section 19 of and to put excessive strains on the interna­ the Federal Reserve Act. For example, the tional reserve positions of some countries. Board might define as deposits, for the pur­ Furthermore, the availability of nonde­ poses of Regulation Q, funds obtained by a positary sources of funds has altered the member bank through the issuance of com­ distribution of monetary restraint among the mercial paper by an organization that owns various sectors of the economy in undesir­ the stock of a member bank or by a cor­ able ways. As I noted earlier, access to the poration that is controlled by such an or­ Euro-dollar markets and to the commercial ganization. paper market has enabled the larger banks Enactment of Section 5 would, however, in the system to continue, until quite re­ strengthen the Board’s authority to apply cently, making a larger amount of credit Regulation Q in such a manner. Such clarifi­ available to businesses in the form of loans cation would be desirable and therefore the than was desirable, especially in view of the Board favors enactment of this provision. fact that increased business investment However, it would seem appropriate to ex­ spending has been a major source of exces­ tend the provision to grant similar authority sive aggregate demands for goods and serv­ to the Federal Deposit Insurance Corpora­ ices this year. Thus, we have not been able tion to control issues of commercial paper to obtain the degree of monetary restraint through holding companies by insured non­ that would have been desirable over the type member banks. of spending that has been most instrumental Section 6 of the bill would add a provi­ this year in the continuation of inflationary sion to Section 19 of the Federal Reserve developments. The actions taken by the Act that would authorize the Board to estab­ Board to diminish the access of banks to lish a 100 per cent reserve requirement nondepositary sources of funds thus seem against increases in member bank borrow­ justified by the need to obtain a more even ings from foreign branches. As members of distribution of the effects of monetary re­ this committee know, the Board recently straint in the banking system and in the acted to establish a 10 per cent marginal various sectors of the economy, and to avoid reserve requirement on these borrowings, disruptively large flows of money and capi­ and also imposed comparable reserve re­ tal in international markets. quirements on loans to U.S. residents by With this background, let me turn now these branches and on borrowings by mem­ to the provisions of the bill with respect to ber banks from foreign banks other than controlling member banks’ abilities to attract branches. This action reflected our concern Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 725 that excessive Euro-dollar borrowings would agreements and programs furthering the ob­ have disruptive effects in financial markets, jectives of the Act, and would exempt par­ both domestic and foreign. ticipants from prosecution under the anti­ The reserve requirement on borrowings trust laws because of their activities in such from foreign banks other than branches is programs. Under the original Act, the Presi­ based on Section 19; the requirements on dent used his authority to instruct the Fed­ borrowings from foreign branches and loans eral Reserve Board to establish industrywide by those branches to U.S. residents were committees of the major financial institu­ based on the Board’s authority in Section tions for the purpose of creating lending 25 of the Federal Reserve Act (and Section criteria that would channel credit to the most 9 so far as State member banks are con­ essential uses. It is quite clear, however, cerned) to regulate foreign branches of that the authority under the Defense Pro­ member banks. duction Act of 1950 restored by these two Unlike Section 19, Section 25 does not provisions of S. 2577 is very general, and limit within specified percentages the reserve would permit the establishment of a wide requirements that the Board may establish. variety of voluntary programs if they were Consequently, the Board could under exist­ deemed by the President to further the ob­ ing law establish a 100 per cent reserve re­ jectives of that Act. These objectives were quirement against member bank borrow­ to facilitate large transfers of resources ings from their foreign branches. Enactment from civilian to military uses as quickly as of Section 6 of the bill would only provide possible during a period of national crisis, an alternative basis for such action. and to do so in ways that would minimize The choice of a 10 per cent marginal re­ the strains on wages, on prices, and on the serve requirement imposed against borrow­ distribution of resources for civilian use. ings from branches reflected the desire for Restoration of such authority would seem consistent treatment as between borrowing to provide the statutory basis for voluntary from branches and from other foreign controls over credit, or in other areas, only banks. The 10 per cent requirement was the during an emergency such as existed when maximum that can be lawfully imposed on the Defense Production Act of 1950 was time deposits under Section 19. enacted, as reflected in the language of that Accordingly, if the Board were to be Act. With regard to the voluntary programs given additional authority with respect to authorized under Section 708 of the Defense the establishment of reserve requirements Production Act, for example, participants against foreign borrowings by member would be exempted from prosecution under banks, in the Board’s view the appropriate the antitrust laws only when the programs action would be to provide authority to in­ are “. . . found by the President to be in crease reserve requirements on borrowings the public interest as contributing to the from foreign banks (under Section 19) to national defense. . . .” the same extent that the Board may now im­ It may be, however, that the content of pose reserve requirements on borrowings these provisions is less important than their from branches (under Section 25). effect on people’s attitudes. Whatever the Sections 7 and 8 of the bill would restore programs are, and whenever they could be to the President lapsed authority in the De­ established, they would have to be volun­ fense Production Act of 1950 to encourage tary. Analysis of their possible effect be­ representatives of all the major sectors of the comes more a matter of judging how people private economy to enter into voluntary would react to their enactment and to their Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 subsequent use than of identifying what—if my personal views on S. 2499 for whatever any—new authority they confer on the assistance they may be in your deliberations. President. As I have indicated before, I believe that Presumably the President does not need the way to get interest rates down is to stop statutory authority to urge public-spirited the inflation that is raising them. I also be­ citizens to cooperate in programs for the lieve that we can bring inflation under con­ common good, apart from the need for trol without selective controls. A selective exempting participants from prosecution control of the kind established by S. 2499 under the antitrust laws. And if “voluntary” would, in my judgment, have unfortunate programs are not always purely voluntary— effects—if, in fact, it succeeded in limiting if there are pressures that can be brought interest rates charged by banks. The efforts to bear to achieve compliance that might not to circumvent the regulations would be otherwise be forthcoming—this, too, might strenuous, as they have been in other areas happen with or without express statutory where maximum lending rates have been authority. imposed by Government. And to the extent We are dealing, then, with intangibles. that such ceilings were effective, they would Presumably, enactment of Sections 7 and 8 be apt to have perverse effects. For years, would tip the scales, however slightly, to­ interest rate ceilings on Government bonds ward increased use of some form of selective have made it impossible to market them. credit restraint program. At the same time Also, interest rate ceilings on mortgages their enactment would add, however slightly, have, at times, and in some areas, made it to skepticism about the Government’s ca­ impossible for home buyers to find mortgage pacity and determination to restore price money. So it seems likely that if the Board stability without selective controls. The and the FDIC were to establish ceilings Board’s judgment is that selective controls much below what the market would other­ of this type are not needed now and that wise set, the result would be not to benefit inflation will be brought under control with­ borrowers but to deny them bank credit. out them. Therefore, we do not recommend And if Government agencies had the author­ enactment of these sections. ity provided in S. 2499 to fix differing rate After the Board had discussed its position ceilings for different kinds of loans, these on S. 2577, as outlined in this statement, I agencies would have an awesome responsi­ was informed that S. 2499 would also be bility for determining which classes of bor­ considered during these hearings. S. 2499 rowers should be favored, and which hin­ would authorize the Board of Governors dered, in seeking loans from banks. and the FDIC, after consultation, to estab­ With all its imperfections, general mone­ lish by regulation the maximum rates of in­ tary restraint seems clearly preferable to terest that may be charged by member banks controls of this sort. Let me say again that and insured nonmember banks, respectively. the policies of restraint now in place can do While I have not had an opportunity to dis­ the job if we can convince people that we cuss this issue with the Board, let me offer are determined to restore price stability. □ 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. Records for the meetings held in 1969 through April 29 were pub­ lished in the Bulletins for April, pages 345-52; May, pages 433-39; June, pages 508-18; July, pages 596-603; and August, pages 647-54. The record for the meeting held on May 27, 1969, follows: 727 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN n SEPTEMBER 1969 MEETING HELD ON MAY 27, 1969 1. Authority to effect transactions in System Account. According to the information reviewed at this meeting, the pace of ex­ pansion in economic activity was moderating slightly further but sub­ stantial upward pressures on prices and costs were persisting. New staff projections for the second quarter suggested that the increase in real GNP would be a little less than the 2.8 per cent annual rate now esti­ mated by the Commerce Department for the first quarter. Prices, how­ ever, were expected to continue rising rapidly. Available data for April showed some signs of a less rapid pace of economic advance. Growth in personal income, industrial production, and nonfarm employment slowed, and the unemployment rate edged up by 0.1 per cent for the second successive month, to 3.5 per cent. Housing starts declined for the third successive month. Retail sales in­ creased considerably, but from a March figure that had been revised downward; in April retail sales were only moderately above the level of September 1968, even though prices had risen substantially in that period. On the other hand, new orders for durable goods rebounded in April after declining in March. Much of the April surge of orders may have been in anticipation of the administration’s recommendation, made on April 21, for repeal of the 7 per cent investment tax credit as of that date. Advances in wholesale prices of industrial commodities remained widespread in April, but the average of such prices rose relatively little because of an abrupt reversal of the earlier rapid run-up for lumber and plywood. The consumer price index increased sharply further, with much of the rise accounted for by higher food prices and home­ ownership costs. Over the past year consumer prices had increased by 5.4 per cent. Unit labor costs in the private nonfarm sector as a whole were reported to have risen markedly in the first quarter. The staff projections for the second quarter suggested that business inventory accumulation would remain at about the first-quarter rate but that expansion in total final sales would slow. It was anticipated that consumer spending would rise less than in the first quarter, that Federal expenditures on goods and services would increase relatively Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 729 little, and that residential construction outlays would decline. Only a small increase appeared in prospect for business spending on plant and equipment after the sharp expansion of the first quarter. Net exports were still expected to turn up as a result of the ending of the longshore­ men’s strike, but by considerably less than had been thought likely earlier. Projections for the second half of 1969 suggested that expansion in real GNP would slow further but that upward pressures on costs and prices would still be strong. The GNP projections assumed that Fed­ eral expenditures would remain under substantial restraint and that, as recommended by the administration, the surtax would be continued at 10 per cent through the end of the year and the investment tax credit would be repealed. Although growth in disposable income was expected to be stimulated temporarily in the third quarter by the ending of retro­ active tax payments and by the scheduled Federal pay increase, it seemed probable that generally moderate rates of expansion in employ­ ment and income in the second half of the year would limit increases in consumer spending. Prospects appeared to be for a continuing down­ drift in residential construction outlays and for only small further in­ creases in business capital expenditures. In April both exports and imports of the United States were above normal as movements of merchandise recovered from the earlier long-, shoremen’s strike. With respect to the over-all international payments of the United States, another large deficit was incurred on the liquidity basis in April while payments on the official settlements basis—which had been in substantial surplus in the first quarter—were about in bal­ ance. Extremely large deficits were incurred on both bases in the first half of May, when expectations of a revaluation of the German mark led to a massive flow of capital into Germany. Beginning in late April, funds moved into marks out of dollars, ster­ ling, French francs, and many other currencies, causing relatively severe reserve losses for a number of countries. Movements out of dollars, from both the United States and the Euro-dollar market, were excep­ tionally heavy, and earlier flows of Euro-dollars to the United States through foreign branches of U.S. banks were temporarily reversed. In­ terest rates in the Euro-dollar market, already high in April in con­ sequence of U.S. bank demands and of reduced supplies from banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 in some European countries, rose sharply further in the first half of May. Subsequently, despite interest costs in the neighborhood of 914 per cent, U.S. banks again increased their liabilities to foreign branches. In its May refunding the Treasury offered two new notes—a 15month, 6% per cent note priced to yield 6.42 per cent and a 7-year, 6!4 per cent note priced at par—in exchange for securities maturing in mid-May and mid-June. Of the $5.9 billion of maturing issues held by the public, about $2.1 billion were exchanged for the shorter-term note, and $2.2 billion—considerably more than had been anticipated in the market—for the 7-year note. The rate of attrition, slightly more than one-fourth of public holdings, was high by historical standards but lower than had been generally expected. 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. Money market conditions were quite taut during the interval. The effective rate on Federal funds fluctuated mostly in a range of 8 to 9 per cent, compared with rates in the 734 to 77s per cent area in the latter part of April. Member bank borrowings rose to an average of about $1.3 billion in the 4 weeks ending May 21 from about $1.0 billion in the previous 4 weeks, and net borrowed reserves increased by a corresponding amount. The tautness in the money market in part reflected aggressive bidding for funds by large banks as they adjusted to the cumulative effects of monetary restraint, the reduced availability of funds from the Euro­ dollar market, and a shift of reserves away from the money centers over the course of the period. Although the System supplied a substantial volume of reserves on balance, it did not fully offset reserve drains stemming from market factors in light of the tendency during much of the interval for short-term Treasury bill rates to move to or below the lower end of recent ranges. For example, the market rate on 3-month Treasury bills, which had been in a range of 6.00 to 6.20 per cent during most of April, declined to a low for the year—5.87 per cent— at the end of that month and subsequently fluctuated mostly in a range below 6.10 per cent. Relatively strong investor demands for bills in the period were augmented by heavy foreign official purchases resulting from the speculative flows into the German mark. Interest rates on other short-term debt instruments and on long-term Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 731 securities had risen in recent weeks under the influence of taut money market conditions, expectations of a possible increase in the prime lending rate of banks, and dampened hopes for a settlement of the Vietnamese war in the near future. Also contributing to upward pres­ sures was the sizable calendar of corporate bond offerings in May and June. The advance in municipal yields was particularly sharp, reflect­ ing limited bank interest in new issues and efforts by dealers to dispose of bonds for which they had made commitments in April in the expecta­ tion of declining yields. Postponements of municipal offerings increased in May, and the calendar for that month—as well as for June—was considerably smaller than the unusually large volume marketed in April. Business loan demands at banks, which were augmented in April by needs to finance tax payments, apparently continued strong in early May. Bank holdings of municipal securities declined slightly in April but holdings of U.S. Government securities increased a little, in part because of bank participation in the Treasury’s late-March bill financ­ ing. Bank credit and the money stock had risen sharply in the first week of April, and although both had declined later in the month, their average levels for April as a whole were considerably above those for March. According to revised estimates, the adjusted bank credit proxy —daily-average member bank deposits, adjusted to include changes in the daily average of U.S. bank liabilities to foreign branches—expanded at an annual rate of 6 per cent from March to April, and the money stock grew at a rate of more than 10 per cent. However, total time and savings deposits of banks declined slightly. Tentative estimates for May indicated that the average level of both the adjusted proxy series and the money stock would be about the same as in April, and that time and savings deposits would again decline slightly. The volume of largedenomination CD’s outstanding was being reduced further in May, and other time and savings deposits apparently were recovering sluggishly from the sizable net outflows that marked much of April. The data available for savings flows at nonbank thrift institutions in early May also suggested only modest improvement over the weak April perform­ ance. It appeared likely that the banking system—and financial markets generally—would be under heavy pressure in June. A near-record Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 volume of corporate income tax payments due at midmonth was ex­ pected to contribute both to substantial demands for business loans and to continuing run-offs of outstanding large-denomination CD’s. Staff projections suggested that bank credit would grow relatively little from May to June if prevailing conditions were maintained in money and short-term credit markets. Specifically, the proxy series adjusted for changes in Euro-dollar liabilities was projected to increase at an annual rate in a range from zero to 5 per cent. Some further recovery was anticipated in consumer-type time and savings deposits, at least until the midyear interest-crediting period. U.S. Government deposits were projected to decline on the average in June as a result of net debt repayments by the Treasury in the latter half of the month. Partly for this reason, and partly in consequence of the expected heavy demands for business loans, sharp increases appeared in prospect for private demand deposits and the money stock; the latter was projected to rise at an annual rate of 7 to 10 per cent. It was noted at the meeting that in recent months banks had begun to draw increasingly on nondeposit sources of funds other than Euro­ dollars—such as funds obtained through sales of commercial paper by bank holding companies and sales of loan participations to nonbank customers under agreements to repurchase—and that credit based on funds from these sources was not reflected in the proxy series as cur­ rently calculated. While data for firm estimates of the amounts involved were lacking, it was suggested that funds raised from such nondeposit sources might have grown at a rate equivalent to 1 or 2 percentage points in the adjusted proxy series in May and might possibly grow more in June. In its discussion of policy the Committee took note of the signs of some slowing in the economic expansion and of the indications of stringency in financial markets. In view of the persistence of strong inflationary pressures and expectations, however, the members agreed that a relaxation of the existing degree of monetary restraint would not be appropriate at this time. There was some comment about the possible need for a slight further firming of policy, but it was noted that the strains anticipated in financial markets in connection with cor­ porate tax payments in June militated against such a course. A num­ ber of members expressed the view that—while disorderly market con- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 733 ditions should be avoided—concern among market participants over the possibility of a “credit crunch” would not in itself warrant an eas­ ing of monetary policy. The Committee decided that open market operations should be directed at maintaining the prevailing pressure on money and short­ term credit markets, with the proviso that operations should be modi­ fied if bank credit appeared to be deviating significantly from current projections. Although not all members were of the same view on the matter, a number suggested that it would be desirable for the change in the adjusted bank credit proxy in June to be kept to the lower end of the projected range, particularly since the measure currently under­ stated the resources actually available to the banking system. And a number of members expressed the hope that growth in the money stock in June could be held below the rate projected. 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 is continuing to moderate slightly, but that substantial upward pressures on prices and costs are persisting. Interest rates have risen in recent weeks. Bank credit and the money supply appear to be changing little on average in May after bulging in April. The outstanding volume of large-denomination CD’s has continued to decline, and the available evidence suggests only modest recovery in other time and savings deposits at banks and in savings balances at nonbank thrift institutions following the outflows of the first half of April. The U.S. balance of payments on the liquidity basis was in sizable deficit in the first 4 months of 1969 but the balance on the official settlements basis remained in surplus as a result of large in­ flows of Euro-dollars. However, there were substantial outflows of funds from the United States in the first half of May, during the period of intense speculation on a revaluation of the German mark, and the payments balance was in very large deficit on both bases. In light of the foregoing developments, it is the policy of the Federal Open Mar­ ket Committee to foster financial conditions conducive to the reduc­ tion of inflationary pressures, with a view to encouraging a more sus­ tainable 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 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 next meeting of the Committee shall be conducted with a view to maintaining the prevailing pressure on 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. Amendment to authorization for System foreign currency operations. The Committee ratified an action taken by members on May 14, 1969, effective on that date, equalizing the System’s swap arrangements with the National Bank of Belgium and the Netherlands Bank at $300 mil­ lion, and making the corresponding amendment to paragraph 2 of the authorization for System foreign currency operations. Previously, the arrangement with the National Bank of Belgium had been in the amount of $225 million and that with the Netherlands Bank in the amount of $400 million. As a result of this action, paragraph 2 of the authorization read as follows: The Federal Open Market Committee directs the Federal Reserve Bank of New York to maintain reciprocal currency arrangements (“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, Rela­ tions 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 ......................................................... 300 Bank of Canada .......................................................................... 1,000 National Bank of Denmark ....................................................... 100 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 735 Amount of arrangement Foreign bank (millions of dollars equivalent) 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 ........................................................................ 300 Bank of Norway.......................................................................... 100 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 ratification of this action: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against ratification of this action: None. The System’s swap arrangements with the two central banks in question had been of equal size for several years before the gold crisis of March 1968, when the arrangement with the Netherlands Bank had been increased by $175 million. Members of the Committee had voted in mid-May to approve the restoration of equality in the size of the two swap arrangements at $300 million upon recommendation of the Special Manager, who advised that the action was agreeable to the central banks of Belgium and the Netherlands. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions LIABILITY ON REPURCHASE issuance of the list of OTC margin stocks and to AGREEMENTS AS DEPOSITS add, omit, or remove any stock in circumstances The Board of Governors has amended its rules indicating that such change is necessary or ap­ governing member bank reserves (Regulation D) propriate in the public interest. and payment of interest on deposits (Regulation * * * * * Q) to permit banks to continue to enter into re­ (f) Each Federal Reserve Bank is authorized, as purchase agreements on a part interest in an obli­ to member banks or other indicated organizations gation eligible for Federal Reserve purchase and to headquartered in its district: classify their liability thereon as a nondeposit bor­ rowing. (This amendment is a minor relaxation * * * * * of an amendment—1969 Federal Reserve Bul­ (17) Under the provisions of § 207.1(b) of letin page 655—to the regulations narrowing this chapter (Regulation G), to approve applica­ the scope of permissible nondeposit bank liabilities tions for termination of registration by persons on repurchase agreements that became effective who are registered pursuant to § 207.1(a). July 24, 1969.) The amendment is as follows: TRUTH IN LENDING INTERPRETATIONS OF REGULATION Z AMENDMENT TO REGULATIONS D AND Q PROPERTY INSURANCE WRITTEN IN CON­ Effective August 15, 1969, section 204.1(f) of NECTION WITH A TRANSACTON— Regulation D and section 217.1(f) of Regulation OBTAINED FROM OR THROUGH Q are amended by striking in clause (2) thereof THE CREDITOR “(other than a part interest in such obligations)”. The Board of Governors has revised the last paragraph of its interpretation on this subject (Au­ RULES REGARDING DELEGATION gust 1969 Bulletin page 659) to read as follows: OF AUTHORITY “If the customer elects to purchase such insur­ AMENDMENTS ance otherwise than from or through the creditor, the creditor is not required to disclose the cost of Effective immediately, section 265.2(c) is the insurance or include the premium in the fi­ amended by adding subparagraph (13) and sec­ nance charge. However, if the cost of such insur­ tion 265.2(f) is amended by adding subparagraph ance is to be financed through the creditor, the (17), as follows: premiums must be included in the ‘amount fi­ SECTION 265.2—SPECIFIC FUNCTIONS nanced’ and disclosed under § 226.8(c)(4) or DELEGATED TO BOARD EMPLOYEES (d)(1), as the case may be.” AND FEDERAL RESERVE BANKS TREATMENT OF “PICK-UP PAYMENT” IN ***** AN INSTALMENT CONTRACT (c) The Director of the Division of Supervision and Regulation (or in his absence, the Acting Di­ In some instances involving an instalment con­ tract arising from a credit sale, the purchaser may rector) is authorized: not pay the full amount of the required down­ * * * * * payment at the time he signs the contract or (13) Under the provisions of §§ 207.2(f), otherwise enters into the credit transaction. In 220.2(e), and 221.3(d) of this chapter (Reg­ such cases, the creditor may include in the instal­ ulations G, T, and U, respectively) to approve ment contract or accept a separate obligation for 736 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

the unpaid portion of the downpayment, commonly venient reference, the applicable provisions of called a “pick-up payment,” the amount of which § 226.5(d) and § 226.503 as they apply to the usually carries no finance charge and is to be paid determination of the finance charge are set forth on or before a specified date independent of the below. other scheduled payments. In determining the finance charge, a creditor The question arises whether the “pick-up pay­ may, at his option, consider the payment irreg­ ment” must be treated as part of the “amount ularities set forth below in subparagraphs (I) and financed” for purposes of disclosure and determina­ (2) as if they were regular in amount or time, as tion of the “annual percentage rate” or whether applicable, provided that the transaction to which it may be treated as a deferred portion of the they relate is otherwise payable in equal instal­ downpayment. ments scheduled at equal intervals. In determining the “amount financed” the cred­ (1) If the period from the date on which the itor may exclude the amount of the “pick-up pay­ finance charge begins to accrue and the date the ment” provided that: final payment is due is not less than 3 months (1) The amount of the finance charge appli­ in the case of weekly payments, 6 months in the cable to the transaction does not exceed the amount case of biweekly or semimonthly payments, or 1 that would have been imposed had the required year in the case of monthly payments either or downpayment been paid in full upon consumma­ both of the following: tion of the transaction; and (a) The amount of one payment other than any (2) The due date of the “pick-up payment” is downpayment is not more than 50 per cent greater not later than the due date of the second payment nor 50 per cent less than the amount of a regular otherwise scheduled. payment; or In making the disclosures required under (b) The interval between the date on which the §226.8(b) (3), if such “pick-up payment” is more finance charge begins to accrue and the date the than twice the amount of an otherwise regularly first payment is due is not less than 5 nor more scheduled equal payment, the creditor shall state than 12 days for an obligation otherwise payable the conditions, if any, under which such “pick-up in weekly instalments, not less than 10 nor more payment” may be refinanced if not paid when due; than 25 days for an obligation otherwise payable and such “pick-up payment” may be identified in biweekly or semimonthly instalments, or not using that term or the term “balloon payment.” less than 20 nor more than 50 days for an obliga­ tion otherwise payable in monthly instalments. APPLICATION OF THE MINOR IRREG­ (2) If the period from the date on which the ULARITIES PROVISIONS IN DETER­ finance charge begins to accrue and the date the MINING THE AMOUNT OF THE final payment is due is less than 3 months in the FINANCE CHARGE case of weekly payments, 6 months in the case of biweekly or semimonthly payments, or 1 year Some creditors calculate finance charges in a in the case of monthly payments, either or both credit transaction on the basis of predetermined of the following: percentage rate or rates, that is one per cent per (a) The amount of one payment other than month on the unpaid balances. Determination of any downpayment is not more than 25 per cent the amount of the finance charge is fairly routine greater nor 25 per cent less than the amount of a for these creditors if the contracts are written for regular payment; or regular payments at regular intervals. However, (b) The interval between the date on which the many times the first payment may be irregular finance charge begins to accrue and the date the either in amount or payment period, or both, first payment is due is not less than 6 nor more especially in those instances where creditors re­ than 10 days for an obligation otherwise payable quire payments to fall due on fixed dates or those in weekly instalments, not less than 12 nor more who are paid by means of payroll deductions. The than 21 days for an obligation otherwise payable minor irregularities provisions of § 226.5(d) of the in biweekly or semimonthly instalments, or not Regulation and § 226.503 of the interpretations less than 25 nor more than 42 days for an obliga­ to Regulation Z, which pertains to the determina­ tion otherwise payable in monthly instalments. tion of the annual percentage rate, also apply to For the purposes of § 226.8(b)(3) in dis­ the determination of the finance charge. For con­ closing the number, amount, and due dates or 737 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

738 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 periods of payments scheduled to repay the in­ lished in the Federal Register on December 28, debtedness and the “total of payments,” the cred­ 1968 (33 Federal Register 19967), providing an itor may treat such irregular payments or payment opportunity for interested persons to submit com­ periods, or both, as if they were regular. If the ments and views with respect to the proposal. A creditor so elects, he may indicate the exact amount copy of the application was forwarded to the or payment period involved in the minor irreg­ United States Department of Justice for its con­ ularity. sideration. Time for filing comments and views has expired and all those received have been con­ sidered by the Board. ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT It is hereby ordered, for the reasons set forth in the Statement of Governors Robertson, Brim­ FIRST EMPIRE STATE CORPORATION, mer and Sherrill, and the Concurring Statement of BUFFALO, NEW YORK Governor Maisel, both of this date, that said ap­ In the matter of the application of First Empire plication be and hereby is denied. State Corporation, Buffalo, New York, for appro­ Dated at Washington, D. C., this 26th day of val of action to become a bank holding company August, 1969. through the acquisition of voting shares of four banks in the State of New York. By order of the Board of Governors. Order Disapproving Action to Become Bank Voting for this action: Governors Robertson, Maisel, Brimmer, and Sherrill. Voting against this action: Holding Company Chairman Martin and Governors Mitchell and Daane. There has come before the Board of Governors, (Signed) Robert P. Forrestal, pursuant to section 3(a)(1) of the Bank Holding Assistant Secretary. Company Act of 1956 (12 U.S.C. 1842 (a)(1)) [seal] and section 222.3(a) of Federal Reserve Regula­ tion Y (12 CFR 222.3(a)), an application by First Empire State Corporation, Buffalo, New York, for the Board’s prior approval of action Statement of Governors Robertson, whereby Applicant would become a bank holding Brimmer, and Sherrill company through the acquisition of all of the out­ standing voting shares (less directors’ qualifying First Empire State Corporation, Buffalo, New shares of the two national banks) of the following York (“Applicant”), has filed with the Board, four banks located in the State of New York: pursuant to section 3(a)(1) of the Bank Holding Manufacturers and Traders Trust Company, Buf­ Company Act of 1956, an application for approval falo; First Trust & Deposit Company, Syracuse; a of action to become a bank holding company new national bank into which would be merged through the acquisition of all of the voting shares National Commercial Bank and Trust Company, of Manufacturers and Traders Trust Company, Albany; and a new national bank into which Buffalo, New York (“M&T”), and First Trust & would be merged First National Bank in Yonkers, Deposit Company, Syracuse, New York (“First Yonkers. Trust”); and all (except directors’ qualifying As required by section 3(b) of the Act, the shares) of the voting shares of two new national Board gave written notice of receipt of the appli­ banks into which it is proposed that National cation to the Comptroller of the Currency and Commercial Bank and Trust Company, Albany, the New York Superintendent of Banks, and re­ New York (“National Commercial”); and First quested their views and recommendations thereon. National Bank in Yonkers, Yonkers, New York The Comptroller recommended approval of the (“First Yonkers”), will be merged. Inasmuch as application, and the New York State Banking the two new national banks have significance only Board advised the Board of its action, consistent as vehicles for accomplishing the acquisition of the with a recommendation made to it by the Superin­ banks to be merged into them, the two latter pro­ tendent, approving an application, filed pursuant posals are treated herein as proposals to acquire to the New York Banking Law, with respect to shares of the two existing banks. the same transaction. Views and recommendations of supervisory au­ Notice of receipt of the application was pub­ thority. As required by section 3(b) of the Act, Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 739 notice of receipt of the application was given to, tered in the city, is the only one permitted under and views and recommendations requested of, the New York law to establish new offices therein. Comptroller of the Currency and the New York First Yonkers ranks fourth in size among banks State Superintendent of Banks. The Comptroller headquartered in Westchester County, and twenty­ recommended approval of the application, and the sixth in size among all banks in the New York New York State Banking Board advised this Board City area. of its action, consistent with a recommendation of M&T ($854 million deposits) is the second the Superintendent (a copy of which was also pro­ largest of five banks in Buffalo and of 33 banks vided to the Board), approving an application in the State’s Ninth Banking District; National with respect of the same transaction pursuant to Commercial ($712 million deposits) is the largest Article III-A of the New York Banking Law. of five banks in Albany and of 36 banks in the Statutory considerations. Section 3(c) of the Act Fourth Banking District; and First Trust ($263 provides that the Board shall not approve an million deposits) is the largest of five banks in acquisition that would result in a monopoly or Syracuse and of 25 banks in the Sixth Banking would be in furtherance of any combination or District. The head office of First Trust in Syracuse conspiracy to monopolize or to attempt to monop­ is located in the center of the State; M&T is head­ olize the business of banking in any part of the quartered in Buffalo, about 150 miles west of United States. Nor may the Board approve a pro­ Syracuse; National Commercial’s headquarters in posed acquisition the effect of which, in any sec­ Albany is about 150 miles east of Syracuse; and tion of the country, may be substantially to lessen First Yonkers’ head office is about 150 miles competition, or to tend to create a monopoly, or south of Albany. Each of the upstate banks oper­ which in any other manner would be in restraint ates a substantial branch system (M&T, 67 of­ of trade, unless the Board finds that the anti­ fices; National Commercial, 54 offices; First Trust, competitive effects of the proposed transaction are 31 offices) and competes throughout a large por­ clearly outweighed in the public interest by the tion of the Banking District in which it is located, probable effect of the transaction in meeting the but no significant competition appears to exist be­ convenience and needs of the community to be tween any two of the upstate banks, or between served. In each case the Board is required to take any of the three and First Yonkers. The closest into consideration the financial and managerial re­ offices of any two of the banks are located about sources and future prospects of the bank holding 50 miles apart, and this geographical dispersion is company and the banks concerned, and the con­ reflected in the fact that none of the four banks venience and needs of the community to be served. derives a significant amount of its deposits or loans Competitive effect of proposed transaction. The from areas served by any of the others. 10 largest banking organizations in the State of In view of the foregoing, it does not appear that New York control, in the aggregate, about 82 per any significant existing competition would be elim­ cent of the total deposits held by all commercial inated by the present proposal. There are, never­ banks in the State.1 Applicant would rank eleventh theless, significant competitive issues raised. The in size among the State’s banking organizations, three proposed upstate subsidiaries are, respectively, and would control 2.4 per cent of the deposits the largest (M&T), second largest (National Com­ held by all banks in the State. mercial), and fifth largest (First Trust) independ­ Of Applicant’s four proposed subsidiaries, all ent banks in all of upstate New York, and, since except First Yonkers ($122 million deposits) are the third and fourth largest independent banks up­ located in upstate New York? The 11 offices of state are located in Albany and Buffalo, they are First Yonkers are located in Yonkers, a city in the three largest upstate banks which could con­ Westchester County with a population of over ceivably be united under common ownership with­ 200,000. Two other banks have offices in Yonkers, out eliminating direct existing competition. They but First Yonkers, as the only bank headquarare located in three of the most significant com­ mercial centers upstate, and each controls a large 1 Unless otherwise noted, all banking data are as of portion of the banking resources of the area which December 31, 1968, adjusted to reflect holding company formations and acquisitions approved by the Board to it serves. Based on market shares of the three date. banks as of June 1968, Applicant would control 2 The term “upstate New York,” as used herein, refers 30 per cent of the deposits and 34 per cent of the to that area of the State outside the five boroughs of New York City and Westchester, Nassau, and Suffolk Counties. offices in the Buffalo area, 39 per cent of the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

740 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 deposits and 28 per cent of the offices in the Applicant’s proposed formation. Accordingly, we Albany area, and 29 per cent of the deposits and reject Applicant’s view that the competitive forces 36 per cent of the offices in the Syracuse area.'1 in operation within the upper New York State Each of the banks is also a significant competitor banking markets are such as to preclude success­ throughout much of the Banking District in which ful operation of a holding company system of it is located: M&T has offices in six of the eight lesser size than that proposed for First Empire. counties of the Ninth District; National Com­ Only by the introduction into banking markets mercial operates in 13 of the 15 counties of the as highly concentrated as Buffalo and Albany of Fourth District; and First Trust has offices serv­ new and substantial competitors will the public— ing three of the six counties in the Sixth Banking as distinguished from the institutions involved—be District. In the broad geographic area encom­ truly served. In our judgment, both M&T and Na­ passed by the three Districts, which has a pop­ tional Commercial can, in a manner consistent ulation of over four million, Applicant would con­ with their institutional interests, serve the public trol about 25 per cent of banking deposits and over interest as members of separate and competing 24 per cent of banking offices. systems. Similarly, First Trust, while perhaps not In past decisions (e.g.. Reconsideration of Ap­ sufficiently sizable to assume the role of a lead plication of BT New York Corporation, 1968 bank in a holding company system, is capable of Federal Reserve Bulletin 225), the Board has participating as a principal member of a separately indicated its concern with respect to proposals competing system. To join both potential lead which would tend to concentrate an a single or­ banks, as well as First Trust, in a single holding ganization control of leading banks in several of company would, in our judgment, tend to per­ a State’s significant banking markets. The basis for petuate existing concentration and impede the that concern lies in the effect which such a pro­ development of competing regional organizations posal has in foreclosing possible alternatives which in upstate New York. could lead to deconcentration of those markets, in Applicant views its proposal as competitively addition to the fact that approval of such proposals desirable in order to prevent the domination of would shortly lead to domination of all of a State’s upstate banking markets by New York City-based significant banking markets by the same few bank­ holding companies and by Marine Midland Banks, ing organizations. In the BT New York matter, Inc. (“Marine Midland”), which has subsidiaries supra, at 229, the Board said: in each of the upstate Banking Districts, as well “Not only is the acquisition of leading banks as a large New York City subsidiary. To the extent in significant banking markets by an organization that Applicant’s thesis implies that holding com­ of Applicant’s size of concern because of its effect pany affiliation is an essential ingredient to the in expanding the size of such organization, but maintenance of strong market positions by M&T, also because of its concurrent effect of eliminat­ National Commercial, and Fifst Trust, we reject ing an institution which could serve as a source that argument. On the contrary, we believe the of future competition for such organizations, either record clearly establishes that the present relative by remaining independent or by becoming a par­ position of each of these banks in their respective ticipant in affiliation with one or more other in­ markets precludes any conclusion but that each stitutions.” is a formidable competitor within its own District The affiliation of at least two potential holding and would remain such as an independent institu­ company lead banks, as Applicant proposes, un­ tion. Even were we to accept the premise that duly and unnecessarily would reduce the already affiliation with other banks is necessary to enable small number of probable upstate holding com­ these upstate banks to compete more effectively pany formations. M&T and National Commercial with either Marine Midland or one or more of are both potential lead banks in holding company the three large New York City-based bank holding systems that could effectively compete across Dis­ company systems, approval of this proposal, in­ trict lines—a major goal allegedly underlying volving the two largest independent banks upstate, and three of the five largest, is not necessary to 3 The Buffalo area consists of Erie and Niagara Coun­ accomplish that result. The fact that consummation ties; the Albany area is composed of Albany and Schenec­ tady Counties, the southern portion of Saratoga County, of the proposal would enable the upstate banks and the western portion of Rensselaer County; and the to better compete with larger organizations, there­ Syracuse area consists of Onondaga County and adjacent areas in Cayuga County. fore, does not justify the anticompetitive effects Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 741 of the method which Applicant has chosen to at­ quired. Prospects of the bank, which appear favor­ tain that end. able in any event, would be somewhat improved Consummation of the proposal would eliminate by consummation of the proposal. the “home office protection” currently accorded Based on the foregoing, the banking factors, the cities of Yonkers and Syracuse under New as they apply to Applicant and the three upstate York law, thereby opening those cities to branch­ banks, are regarded as consistent with approval of ing by other banks in those areas. While these the application, but provide no weight in support effects are entitled to some favorable weight, they thereof. The assistance which Applicant would are insignificant in comparison to the substantial provide to First Yonkers in solving the latter’s anticompetitive effects heretofore discussed. The management and capital problems results in favor­ New York City area in which Yonkers is located able weight under the banking factors as they is well served by a large number of competing relate to that bank. However, there is no reason banks, which are accessible, with only minor in­ to believe that such problems could not be solved convenience, to Yonkers’ residents. There are few without Applicant’s assistance, and these con­ banks in the Sixth Banking District, not already siderations therefore provide only slight weight in located in Syracuse, which are of such size as to be support of the application. likely to be attracted by the opportunity to branch Convenience and needs of the communities in­ into the area, particularly if the established position volved. Each of the three upstate cities is presently of First Trust were enhanced by its status as a provided with a full line of banking services by subsidiary of Applicant. large banks and banking organizations located For the reasons herein discussed, it is our con­ there, including the proposed upstate subsidiaries. clusion that consummation of Applicant’s proposal Applicant’s proposal would permit the sharing of may have the effect of substantially lessening com­ specialized loan skills among the subsidiary banks petition in upstate areas of the State of New York as needed in the market served by one of the in which none, or only one, of Applicant’s pro­ others, and would increase the capability of the posed subsidiaries presently operates by frustrating banks in supplying municipal bond financing, large the development of separate banking organizations loan participations, and the services commonly pro­ which, by entering such markets, could serve as a vided by large banks, such as data processing, means of promoting deconcentration therein. The corporate trust, investment trust, and international proposal would also tend to broaden present mar­ banking services. Although quality services of ket concentration into regional concentration by these types are already available in each of the uniting under common ownership three upstate markets, and are to some extent already provided banks which are among the dominant banks in by the three proposed upstate subsidiaries, some their respective markets. benefits to the communities involved would result Financial and managerial resources and future from the foreseeable improvements in the services prospects. Applicant, a new corporation, would offered by the three banks. begin operations with a satisfactory financial con­ The needs of the banking public in the New dition. Its management, which would be drawn York City area, of which Yonkers is a part, are primarily from the three upstate banks, is con­ adequately served by the large number of sub­ sidered competent, and its prospects would be stantial banks competing in the area. The con­ favorable. venience of customers in the immediate Yonkers The three upstate banks are all in satisfactory area, however, would to some extent be better financial condition, with capable management and served by consummation of the proposal. As a favorable prospects. result of a lack of branching initiative by First First Yonkers is in reasonably satisfactory finan­ Yonkers, coupled with the fact that it is the only cial condition. Its capital, however, is somewhat bank permitted under New York law to branch below desirable levels, a condition which Applicant within Yonkers, the number of persons per bank­ has assured would be remedied in the event that the ing office in Yonkers is substantially above that present application were approved. Pending the for Westchester County as a whole. Consumma­ Board’s ruling on the present proposal, M&T has tion of Applicant’s proposal could lead to a more provided management assistance to First Yonkers, aggressive branching policy by First Yonkers, and and Applicant has indicated that additional man­ would open the City to branching by other West­ agement would be provided for the bank as re­ chester County and New York City banks, thereby Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

742 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 increasing the number of banking offices within interest and, therefore, could be approved. The the City. Applicant also indicates that consumma­ Board, through a process of self-denial, has in the tion of its proposal would result in a less con­ past, with respect to holding company formation servative lending policy for First Yonkers, and in proposals, adopted a policy of approving or deny­ improvements in its rendition of other services. ing the entire proposal. Such a policy makes it Considerations bearing upon the convenience most difficult for the Applicant to ascertain the and needs of the communities involved provide Board’s views as to whether a less inclusive appli­ some weight in favor of approval of the application. cation might so decrease the anticompetitive as­ Summary and conclusion. Consummation of pects as to enable it to meet the test of the public Applicant’s proposal would foreclose significant interest. While such abnegation may be admirable potential competition in upstate areas of New in many cases, since it requires only a yes or no York and, as a result, may have the effect of answer by the Board and avoids offering advice substantially lessening competition in those areas. which may or may not be desired by the applicant, Considerations under the banking and convenience it appears to me that it should not be a rule and needs factors, while consistent with, and to observed under all circumstances. This is espe­ some extent providing weight in favor of, approval cially so when the result, as in this case, may lead of the application, fall far short of outweighing to a “second-best” decision. When the public in­ the proposal’s anticompetitive effects. There are terest can be served by procedural changes, the no significant benefits which would result from the Board should free itself of its self-imposed re­ proposal which could not be accomplished through strictions. less anticompetitive means. The Board decision in this case is “second-best” On the basis of all relevant facts contained in because the formation of a smaller holding com­ the record, and in the light of the factors set forth pany would better serve the public interest than in section 3(c) of the Act, it is our judgment that either an approval of the current application or the proposed action would not be in the public the failure to form any holding company. I be­ interest and that the application should be denied. lieve the Board should have made this clear in its decision. Concurring Statement of Governor Maisel The key difficulty in this proposal should be I concur in the denial of the application in the clearly recognized. It stems from the proposal to form in which it was submitted. The Statement of affiliate M&T and National Commercial in the Governors Robertson, Brimmer, and Sherrill in same organization. Were the proposal to include support of the Board’s denial action properly de­ First Trust, First Yonkers and either National scribes the serious anticompetitive effects which Commercial or M&T, the conclusions reached would result if the application were approved— above would have to be altered. The anticompeti­ effects which, I agree, are not outweighed by any tive effects in Buffalo and Albany, resulting from other considerations presented in the record. the elimination of likely entrants, would disappear; The affiliation of these four banks would injure and competition would be enhanced by the estab­ competition by eliminating potential entrants into lishment of an additional holding company that the Buffalo, Syracuse, and Albany banking mar­ could enter other markets throughout the State. kets. AU three of these banking markets are highly Furthermore, the possibility of establishing still concentrated. Currently few likely entrants into another statewide holding company headed by the these areas exist. Furthermore, since M&T and excluded bank, whether M&T or National Com­ National Commercial are potential lead banks in mercial, would remain. statewide holding companies, the proposed affilia­ From the public interest point of view, the tion would foreclose the possibility of at least one potential affiliation, if it excluded either M&T or additional statewide holding company that could National Commercial, would be highly desirable. successfully enter markets elsewhere throughout Unfortunately, the options which the Board has the State. traditionally followed in such cases do not allow However, I believe that the Statement of my for expression of approval of only part of the three associate Members is faulty insofar as it proposal. In this circumstance, denial is a proper does not make clear to the Applicant that if the decision. However, a preferred alternative to denial application were reshaped, consummation of part of the entire proposal would have been to approve of the Applicant’s proposal would serve the public the proposed formation contingent on the exclu- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 743 sion of either National Commercial or M&T from of Western New York, Buffalo; Charter New York the holding company. Corporation, whose five banks hold deposits of Considerable time, effort and monies have been $4.0 billion, including $3.7 billion in its lead bank, invested by the proponents in developing and Irving Trust Company, New York City; Bank of submitting this application. It is one that if prop­ New York Company, whose six operating sub­ erly implemented in part would be of major value sidiary banks hold deposits of $2.4 billion, includ­ to the people of the State of New York. For the ing $1.4 billion in its lead bank, Bank of New Board not to make this clear and not to indicate York, New York City; and Lincoln First Banks, to the Applicant that a new proposal properly whose five banks hold deposits of $1.6 billion, shaped and corrected would be assured a favor­ including $744 million in its lead bank, Lincoln able reception is unreasonable. Moreover, the ex­ Rochester Trust Company, Rochester. This extant tensive study undertaken by the Board in this case and evolving pattern is one sought by the banking and in earlier cases in New York State would authorities in New York State and sufficiently ap­ make such assurances a simple matter. pealing to the corporate interests to impel action I believe that the Board should have ruled that reasonably calculated to conform to this pattern. consummation of that part of Applicant’s proposal Congress has not charged the Board with taking which the Board has determined would .serve the the initiative in attempting to mold a banking sys­ public interest should not be subjected to further tem which conforms to its subjective standards or procedural requirements or decisional action by to particularized statutory standards. It has said, in the Board. Rather, Applicant should by this de­ effect, if business motives and advantages result cision be given the opportunity, if it so desires, to in the formation of a holding company, a merger, consummate so much of its proposal as would be a new bank or any other particularly structural consistent with the Board’s analysis and judgment changes it is the supervisory agency’s responsibility of this case. to deny the acquisition if the public interest is ad­ versely affected. The majority’s assertion that these Dissenting Statement of Chairman Martin two or three units can and will become more potent, and Governors Mitchell and Daane competitive influences throughout New York State The significant difference of opinion between the if this application is denied is, in our judgment, majority and the minority in this case has to do highly conjectural and reaches well beyond the with the effect of the proposal on the banking preservation of the public interest. structure in New York State. The majority’s dis­ approval hinges on the judgement that at least DEPOSITORS CORPORATION, two, and perhaps three, of the proposed holding AUGUSTA, MAINE company affiliates are potential lead banks in addi­ tional potential holding companies, and the further In the matter of the application of Depositors assumption that the larger the number of entrants, Corporation, Augusta, Maine, for approval of regardless of their nature, the more competitive acquisition of at least 51 per cent of the voting the banking structure. We do not concur with shares of The First Motional Bank of Houlton, these conjectural views. Houlton, Maine. While one could not say categorically that M&T, Order Disapproving Acquisition of Bank National Commercial or First Trust are not large Stock by Bank Holding Company enough to become lead banks in some sort of New York holding company, in our opinion the instant There has come before the Board of Governors, proposal is not inconsistent with the present sized pursuant to section 3(a)(3) of the Bank Holding lead banks and holding companies in New York. Company Act of 1956 (12 U.S.C. 1842(a)(3)) These are Bankers Trust New York Corporation, and section 222.3(a) of Federal Reserve Regula­ whose six subsidiary banks hold deposits of $6.0 tion Y (12 CFR 222.3(a)), an application by billion, including $5.6 billion in its lead bank, Depositors Corporation, Augusta, Maine, a regis­ Bankers Trust Company, New York City; Marine tered bank holding company, for the Board’s prior Midland Banks whose 12 banks hold deposits of approval of the acquisition of at least 51 per cent $5.0 billion, including $2.0 billion in Marine Mid­ of the voting shares of The First National Bank of land Grace Trust Company, New York City, and Houlton, Houlton, Maine. $1.3 billion in Marine Midland Trust Company As required by section 3(b) of the Act, the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

744 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 Board notified the Comptroller of the Currency of Act provides that the Board shall not approve an receipt of the application and requested his views acquisition that would result in a monopoly or and recommendation. The Comptroller recommend­ would be in furtherance of any combination or ed approval of the application. conspiracy to monopolize or to attempt to monopo­ Notice of receipt of the application was pub­ lize the business of banking in any part of the lished in the Federal Register on May 6, 1969 (34 United States. Nor may the Board approve a pro­ Federal Register 7340), providing an opportunity posed acquisition the effect of which, in any section for interested persons to submit comments and of the country, may be substantially to lessen com­ views with respect to the proposal. A copy of the petition, or to tend to create a monopoly, or which application was forwarded to the Department of in any other manner would be in restraint of trade, Justice for its consideration. Time for filing com­ unless the Board finds that the anticompetitive ments and views has expired and all those received effects of the proposed transaction are clearly out­ have been considered by the Board. weighed in the public interest by the probable It is hereby ordered, for the reasons set forth effect of the transaction in meeting the convenience in the Board’s Statement of this date, that said and needs of the community to be served. In each application be and hereby is denied. case, the Board is required to take into considera­ tion the financial and managerial resources and Dated at Washington, D.C., this 13th day of future prospects of the bank holding company and August 1969. the banks concerned, and the convenience and By order of the Board of Governors. needs of the community to be served. Competitive effect of proposed transaction. The Voting for this action: Chairman Martin and Gov­ 10 largest banking organizations in the State of ernors Robertson, Daane, Maisel, Brimmer, and Sher­ rill. Absent and not voting: Governor Mitchell. Maine control about 77 per cent of the deposits held by all commercial banks in the State. Appli­ (Signed) Elizabeth L. Carmichael, cant, the largest banking organization and the Assistant Secretary. largest of four bank holding companies in the State, [seal] accounts for 15.2 per cent of such deposits. Acqui­ sition of Houlton Bank would increase Applicant’s share of such deposits to 16.7 per cent, and the 10 Statement largest banking organizations in Maine would then Depositors Corporation, Augusta, Maine (“Ap­ control over 78 per cent of the deposits held by all plicant”), a registered bank holding company, has banks located in the State. applied to the Board of Governors, pursuant to Applicant’s subsidiaries serve all or portions of section 3(a)(3) of the Bank Holding Company 11 of Maine’s 16 counties. It’s largest subsidiary, Act of 1956 (12 U.S.C. 1842(a)(3)), for prior Depositors Trust Company, is also the largest com­ approval of the acquisition of at least 51 per cent mercial bank in the State—headquartered in Au­ of the voting shares of The First National Bank of gusta, the State capital, it has 31 offices located Houlton, Houlton, Maine (“Houlton Bank”). Ap­ throughout central Maine, and has deposits of $146 plicant presently controls four banks which hold million. Applicant’s three other subsidiary banks deposits of $165 million.1 Houlton Bank has total operate a total of six offices and hold $19.2 million deposits of $15.8 million. in deposits. Views and recommendation of supervisory au­ Houlton Bank, which has two offices in Houlton thority. As required by section 3(b) of the Act, (population about 9,000), is more than twice as the Board notified the Comptroller of the Currency large as the only other bank in Houlton, and is of receipt of the application and requested his views the second largest of seven banks with offices in and recommendation thereon. The Comptroller Aroostook County (population 95,000). In the en­ recommended approval of the application. tire State of Maine, which has few large banks, Statutory considerations. Section 3(c) of the Houlton Bank is the fifteenth largest bank; in that area north of Portland in which Applicant’s activi­ 1 Unless otherwise noted, banking data are as of De­ ties are concentrated, it is the twelfth largest bank. cember 31, 1968, adjusted to reflect holding company acquisitions approved by the Board to date. Two of the Applicant received Board approval in December banks treated herein as subsidiaries of Applicant are banks 1968 (1969 Federal Reserve Bulletin 57) to ac­ which Applicant has received Board approval to acquire, but has not yet acquired. quire voting shares of First National Bank of Fort Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 745 Fairfield (“Fort Fairfield Bank”), which is also operates its only branch in Island Falls, in Aroo­ located in Aroostook County. Acquisition of Houl­ stook County, about 30 miles southwest of Houlton ton Bank would therefore result in Applicant’s and on the fringe of the area immediately served ownership of two of the seven hanks operating in by Houlton Bank. Approval of both the present the county, and in its control of 18.7 per cent of application and that one would result in Applicant’s the deposits held by banks in that area. Two bank­ control of three of the seven banks which operate ing organizations, Applicant and Northern National offices in Aroostook County. Without implying a Bank of Presque Isle ($53 million deposits), an in­ determination on the merits of the application re­ dependent bank which is by far the largest organi­ lating to Katahdin Trust, processing of which has zation in terms of area deposits, would control been suspended at Applicant’s request pending a almost 75 per cent of the deposits held by all banks determination with respect to the present matter, in the county. it seems clear that any anticompetitive consequences The acquisition of Fort Fairfield Bank by Ap­ of that proposal would be less significant than those plicant has not yet been consummated. For that involved in the present case. The filing of that ap­ reason, the competitive capability of that bank as a plication therefore further evidences the fact that subsidiary of Applicant is not measured by its de­ there are alternative methods of entry by Applicant posits of $4.8 million, nor is its branching poten­ into the Houlton area which are less inimical to the tial reflected by its one existing office and one ap­ preservation of future competition and the preven­ proved branch in the county. The likelihood is that, tion of excessive concentration than the present as noted by the Board in its decision on the appli­ proposal. cation involving Fort Fairfield Bank, the bank will Consummation of Applicant’s proposal would be a stronger competitor as a subsidiary of the not result in a monopoly; neither does it appear largest banking organization in the State than it that it would be in furtherance of any combination, has been as an independent bank, and the same is conspiracy, or attempt to monopolize the business true with respect to Houlton Bank. It is probable, of banking in any area. As implied by the foregoing therefore, that the high degree of county concen­ discussion, however, Applicant’s proposal would tration which would immediately exist upon con­ have significant anticompetitive effects. The acquisi­ summation of the present proposal would increase tion of one of the larger independent banks in still further in the future. Maine by the dominant banking organization in Under Maine law, a bank may establish branches the State makes more difficult and Jess likely the in the county in which it is located, in contiguous development of competing organizations of a size counties, and, outside those areas, in any town that comparable to that of Applicant. That considera­ has no banking office. The nearest office of Fort tion is perhaps not of compelling significance where Fairfield Bank is about 42 miles from Houlton the bank involved is not large in absolute terms Bank and the two banks are not presently signifi­ and is substantially smaller than another bank in its cant competitors. However, since both banks are county, if its acquisition would permit an applicant located in Aroostook County, their legal branch­ to serve an area which it could not otherwise serve. ing areas are identical, and ownership of both banks But it is of significance where, as here, the bank by Applicant would therefore result in the foreclo­ to be acquired is one of the larger of a limited num­ sure of potential competition between them. This ber of banks so located as to have the ability to foreclosure is of particular significance in a stable provide competition to one of the subsidiaries of or declining economy such as exists in Aroostook that applicant, since the possible alternative pro­ County. Since such an area is less likely to attract posals foreclosed by the acquisition could lead to new entry than is an area with a more dynamic direct competition with such other subsidiary, as economy, the effect of foreclosing such competi­ well as with other banks in the area. Although the tion is less likely to be ameliorated through com­ acquisition here proposed would likely improve the petition arising from a source outside the area. ability of Houlton Bank to compete with the much In addition to the present application and to its larger Northern National Bank of Presque Isle, ownership of Fort Fairfield Bank, Applicant has there are other possible methods of accomplishing filed an application to acquire The Katahdin Trust that result which would not foreclose future com­ Company ($4.6 million deposits), which is head­ petition with any banking institution already in the quartered in Patten in Penobscot County, a county Aroostook County area, but which could, on the contiguous to Aroostook County. Katahdin Trust contrary, increase such competition. Similarly, if it Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

746 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 be assumed that Applicant requires a broader base section 3(c) of the Act, it is the Board’s judgment of operations in Aroostook County in order to that the proposed transaction would not be in the effectively compete throughout that area, there are public interest and that the application should be other alternatives available to it which do not in­ denied. volve anticompetitive effects as serious as the MARSHALL & ILSLEY BANK present proposal. Financial and managerial resources and future STOCK CORPORATION, MILWAUKEE, WISCONSIN prospects. The financial condition of Applicant and its subsidiary banks is satisfactory, and the pros­ In the matter of the application of Marshall & pects of each appear favorable. Management of llsley Bank Stock Corporation, Milwaukee, Wis­ Applicant and its subsidiary banks is regarded as consin, for approval of acquisition of 80 per cent experienced and competent. or more of the voting shares of Peoples State Bank, Houlton Bank is in satisfactory financial condi­ New Holstein, Wisconsin. tion, with a good earnings record. Policy decisions of the bank are dominated by its President, who is Order Approving Application Under past the usual retirement age. However, middle Bank Holding Company Act management of the bank is experienced and ap­ There has come before the Board of Governors, pears competent, and there do not appear to be any pursuant to section 3(a)(3) of the Bank Holding problems of management succession which cannot Company Act of 1956 (12 U.S.C. 1842(a)(3)) be solved by the bank without assistance. Prospects and section 222.3(a) of Federal Reserve Regula­ of Houlton Bank are regarded as favorable. tion Y (12 CFR 222.3(a)), an application by Mar­ Considerations under the banking factors are shall & llsley Bank Stock Corporation, Milwaukee, consistent with, but lend no significant weight to­ Wisconsin, for the Board's prior approval of the ward, approval of the application. acquisition of 80 per cent or more of the voting Convenience and needs of the communities in­ shares of Peoples State Bank, New Holstein, Wis­ volved. Consummation of Applicant’s proposal consin. . would not affect the convenience or needs of cus­ As required by section 3(b) of the Act, the tomers of Applicant’s subsidiaries located outside Board gave written notice of receipt of the applica­ the Houlton and Aroostook County areas. tion to the Wisconsin Commissioner of Banking Applicant states that its acquisition of Houlton and requested his views and recommendation. The Bank will afford the latter greater lending power Commissioner offered no objection to approval of through participation of loans with other sub­ the application. sidiaries, and will result in improvements in Houl­ Notice of receipt of the application was published ton Bank’s trust account administration, internal in the Federal Register on May 8, 1969 (34 Fed­ audit procedures, and data processing services. eral Register 7474), providing an opportunity for There appears to be only limited demand in the interested persons to submit comments and views area for the new and improved services which with respect to the proposal. A copy of the applica­ would result. In addition, such services are avail­ tion was forwarded to the United States Depart­ able presently from the larger bank in Aroostook ment of Justice for its consideration. Time for filing County, and could be made available in the area comments and views has expired and all those re­ by Applicant without consummation of the present ceived have been considered by the Board. proposal. Therefore, although the convenience of It is hereby ordered, for the reasons set forth customers of Houlton Bank desiring such services in the Board’s Statement of this date, that said would to some extent be served, this consideration application be and hereby is approved, provided provides only limited weight in favor of approval that the action so approved shall not be consum­ of the application. mated (a) before the thirtieth calendar day fol­ Summary and conclusion. Consummation of Ap­ lowing the date of this Order or (b) later than three months after the date of this Order unless plicant’s proposal would have significant anticom­ such time shall be extended by the Board, or by petitive effects, which, the Board finds, are not out­ the Federal Reserve Bank of Chicago pursuant to weighed by any other considerations presented in delegated authority. the record. On the basis of all relevant facts contained in the Dated at Washington, D.C., this 13th day of record, and in the light of the factors set forth in August 1969. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 747 By order of the Board of Governors. community to be served. In each case the Board is required to take into consideration the financial and Voting for this action: Vice-Chairman Robertson managerial resources and future prospects of the and Governors Mitchell, Maisel, Brimmer, and Sher­ rill. Absent and not voting: Chairman Martin and bank holding company and the banks concerned, Governor Daane. and the convenience and needs of the community (Signed) Elizabeth L. Carmichael, to be served. Assistant Secretary. Competitive effect of the proposed transaction. The 10 largest banking organizations in Wisconsin, [seal] which include 8 of the 11 Wisconsin-based bank holding companies, control approximately $3.4 Statement billion of total bank deposits in the State or almost Marshall & Ilsley Bank Stock Corporation, Mil­ 40 per cent of such deposits. The three largest, waukee, Wisconsin (“Applicant”), a registered all holding companies, control about 30 per cent. bank holding company, has applied to the Board of The largest controls almost 17 per cent. Applicant, Governors, pursuant to section 3(a)(3) of the the third largest, controls 6.5 per cent. After acqui­ Bank Holding Company Act of 1956 (12 U.S.C. sition of Bank, Applicant would control an addi­ 1842(a)(3)), for prior approval of the acquisition tional .1 per cent of total bank deposits in the State. of 80 per cent or more of the voting shares of Thus, acquisition of Bank would have only a negli­ Peoples State Bank, New Holstein, Wisconsin gible effect on Applicant’s share of control. (“Bank”). Bank is the largest of nine banks located in Applicant controls 6 banks in the Milwaukee Calumet County and holds 22.7 per cent of county area, with aggregate total deposits of approximately deposits. One of the banks in the county is now $548 million.1 Bank, operating the only banking affiliated with a holding company (other than Ap­ office in the City of New Holstein, which is 70 plicant). Bank’s relevant market area is shown as miles from Milwaukee and is located in the south­ primarily the City of New Holstein and the Town eastern corner of Calumet County, Wisconsin, has of New Holstein (with a combined estimated popu­ total deposits of less than $11 million. lation of 5,000), but as including also the cities of Views and recommendation of supervisory au­ Kiel and Chilton and their surrounding areas, in­ thority. As required by section 3(b) of the Act, cluding a small portion of Manitowoc County to notice of receipt of the application was given to the the east of New Holstein. Bank is represented as Wisconsin Commissioner of Banking, and his views competing with four other banks in its service area and recommendation were requested. The Com­ (containing about 11,000 people), and with three missioner offered no objection to approval of the other banks located, respectively, in Manitowoc, application. Sheboygan, and Fond du Lac counties, in commu­ Statutory considerations. Section 3(c) of the Act nities that are located outside Bank’s designated provides that the Board shall not approve an acqui­ service area. Bank controls 23.6 per cent of the total sition that would result in a monopoly or would be deposits of the eight competing banks. The largest in furtherance of any combination or conspiracy to of Bank’s competitors (on the basis of deposits) monopolize or to attempt to monopolize the busi­ controls 22.5 per cent of such deposits. Based upon ness of banking in any part of the United States. deposit and loan growth during the past five years, Nor may the Board approve a proposed acquisition Bank appears to lack aggressiveness in serving the the effect of which, in any section of the country, community. may be substantially to lessen competition, or to The data presented reflect that Applicant’s acqui­ tend to create a monopoly, or which in any other sition of Bank would not have a substantially ad­ manner would be in restraint of trade, unless the verse impact upon the degree of concentration of Board finds that the anticompetitive effects of the banking resources in the State, nor in any of the proposed transaction are clearly outweighed in the relevant service areas. On the record before the public interest by the probable effect of the trans­ Board, it is concluded that the proposed affiliation action in meeting the convenience and needs of the would not result in a monopoly nor be in further­ ance of any combination or conspiracy to monopo­ 1 Unless otherwise noted, banking data are as of De­ cember 31, 1968, refer to insured commercial banks, and lize or attempt to monopolize the business of bank­ have been adjusted to reflect holding company formations ing in any relevant area. and acquisitions for which Board approvals have been issued to date. Considering next the probable effect of con- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

748 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 summation of Applicant’s proposal on existing or the economic development of the area. These con­ potential competition, the Board finds that these siderations and, in addition, favorable transporta­ considerations present no bar to approval of the tion and recreational facilities enhance the area’s application. Applicant states that no service area of prospects for continued growth. Applicant proposes any of Applicant’s subsidiaries overlaps Bank’s to effect more aggressive credit policies for Bank service area, all offices of Applicant’s subsidiaries and a program of loan participations with other are at least 70 miles from Bank, and that there is banks in Applicant’s system; also to make data no competition between Bank and Applicant’s sub­ processing services and trust facilities available to sidiaries. No banking alternative in the service area Bank’s customers; and to provide expanded com­ would be eliminated by consummation of the pro­ puter services for Bank. Applicant proposes also posed acquisition. The development of future com­ to provide Bank with a farm loan officer and vari­ petition between Bank and any of Applicant’s ous types of specialty financing that have not been subsidiaries is considered to be unlikely (even in available at Bank; and to furnish trained personnel the absence of the affiliation proposed herein) in as needed. It appears that Applicant can and will view of the distances and geographical barriers in­ assist Bank to serve the area more fully. The local volved, branching restrictions applicable in Wis­ availability of improved and expanded services as consin, and the number of banks in the intervening proposed would be beneficial to the area as well as areas. Also, it appears unlikely that consummation to Bank. Considerations relating to the convenience of the proposed affiliation will have any undue and needs of the community served by Bank pro­ adverse effect on any of the seven banks regarded vide weight in favor of approval of the application. as Bank’s competitors, each of which has experi­ Summary and conclusion. On the basis of all the enced, during the last five years, a higher rate of relevant facts contained in the record, and in the loan and deposit growth than has Bank. light of the factors set forth in section 3(c) of the The Board concludes that consummation of the Act, it is the Board’s judgment that the proposed proposed transaction would not substantially lessen transaction would be in the public interest and that competition, tend to create a monopoly, nor in the application should be approved. any other manner restrain trade in any relevant section of the country. LINCOLN FIRST BANKS INC., Financial and managerial resources and future ROCHESTER, NEW YORK prospects. The financial condition of Applicant and its present subsidiaries is generally satisfactory; and In the matter of the application of Lincoln First management is considered competent. Future pros­ Banks Inc., Rochester, New York, for approval of pects for the group appear favorable. acquisition of voting shares of the successor by Bank’s management and financial condition are merger to National Bank of Westchester, White judged to be fair. The chief executive officer, whose Plains, New York. family interests own control of the Bank, is 76 years old. It appears that Bank and the community Order Approving Acquisition of Bank Stock it serves would benefit from more aggressive super­ by Bank Holding Company vision and credit policies. Improvement in these There has come before the Board of Governors, areas, as well as suitable management succession, pursuant to section 3(a)(3) of the Bank Holding could be provided by Applicant if the transaction Company Act of 1956 (12 (J.S.C. 1842(a)(3)), herein is consummated. Future prospects of the and section 222.3(a) of Federal Reserve Regula­ Bank would also be enhanced by affiliation with tion Y (12 CFR 2223(a)), an application by Lin­ Applicant. The Board concludes that considera­ coln First BanksHnc., Rochester, New York, a tions under the banking factors are consistent with registered bank holding company, for the Board’s and lend some weight towards approval. prior approval of the acquisition of 80 per cent Convenience and needs of the community in­ or more of the outstanding voting shares of the volved. The City of New Holstein and the surround­ successor by merger to National Bank of West­ ing area have developed, in recent years, from a chester, White Plains, New York. primarily farm economy to one that is commercially As required by section 3(b) of the Act, the as well as agriculturally oriented. The growth in Board gave written notice of receipt of the applica­ manufacturing and retail firms and the construction tion to the Comptroller of the Currency and re­ of new housing subdivisions have contributed to quested his views and recommendation. The Comp- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 749 trailer recommended approval of the application. hank to be merged into it; the proposal is therefore As discussed in the accompanying Statement, treated herein as one to acquire shares of NBW. the New York State Banking Board approved an ^iews and recommendation of supervisory au­ application involving the same proposal in accord­ thority. As required by section 3(b) of the Act, the ance with a recommendation of the New York Board notified the Comptroller of the Currency State Superintendent of Banks, and advised this of receipt of the application and requested his views Board of its action. and recommendation thereon. The Comptroller rec­ Notice of receipt of the application was pub­ ommended approval of the application. lished in the Federal Register on March 27, 1969 Pursuant to the requirements of Article III-A (34 Federal Register 5776), which provided an of the New York Banking Law, Applicant sub­ opportunity for interested persons to submit com­ mitted an application involving the same proposal ments and views with respect to the proposed to the New York State Banking Board. The Bank­ acquisition. A copy of the application was forward­ ing Board approved the application on May 8, ed to the United States Department of Justice for 1969, in accordance with the recommendation of its consideration. Time for filing comments and the New York Superintendent of Banks, a copy of views has expired and all those received have been which was transmitted to the Board of Governors. considered by the Board. Statutory considerations. Section 3(c) of the Act It is hereby ordered, for the reasons set forth provides that the Board shall not approve an acqui­ in the Board’s Statement of this date, that said sition that would result in a monopoly or would he application be and hereby is approved, provided in furtherance of any combination or conspiracy that the acquisition so approved shall not be con­ to monopolize or to attempt to monopolize the summated (a) before the thirtieth calendar day business of banking in any part of the United following the date of this Order, or (b) later than States. Nor may the Board approve any other pro­ three months after the date of this Order, unless posed acquisition, the effect of which, in any section such period is extended for good cause by the Board of the country, may be substantially to lessen com­ or by the Federal Reserve Bank of New York petition, or to tend to create a monopoly, or which pursuant to delegated authority. in any other manner would be in restraint of trade, unless the Board finds that the anticompetitive Dated at Washington, D.C., this 19th day of effects of the transaction are clearly outweighed in August 1969. the public interest by the probable effect of the By order of the Board of Governors. transaction in meeting the convenience and needs of the community to be served. In each case, the Voting for this action: Vice Chairman Robertson and Governors Mitchell, Maisel, Brimmer, and Sher­ Board is required to take into consideration the rill. Absent and not voting: Chairman Martin and financial and managerial resources and future Governor Daane. prospects of the bank holding company and the (Signed) Elizabeth L. Carmichael, banks concerned, and the convenience and needs Assistant Secretary. of the community to be served. Competitive effect of proposed transaction. Ap­ [seal] plicant is the twelfth largest banking organization and the fifth largest bank holding company in the Statement State of New York.1 It has four subsidiary banks, Lincoln First Banks Inc., Rochester, New York which hold $1.2 billion in deposits, or 1.4 per cent (“Applicant”), a registered bank holding company, of the total amount of deposits held by all banks has applied to the Board of Governors, pursuant in the State. Acquisition of NBW, which has $427 to section 3(a)(3) of the Bank Holding Company million in deposits, would increase Applicant’s Act of 1956, for prior approval of the acquisition share of State deposits to 1.9 per cent. It would of 80 per cent or more of the outstanding voting become the State’s eleventh largest banking organi­ shares of the successor by merger to National Bank zation, but its present ranking among bank holding of Westchester, White Plains, New York (“NBW”). companies in the State would not be affected. Applicant proposes to acquire shares of a new na­ tional bank into which NBW will be merged. The ' Unless otherwise noted, all banking data are as of De­ new national bank has no significance except as a cember 31, 1968, refer to insured commercial banks, and reflect holding company acquisitions and mergers ap­ vehicle for accomplishing the acquisition of the proved by supervisory authorities to date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

750 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 NBW is the second largest of six banks head­ would be one of the smaller organizations compet­ quartered in Westchester County and the seventh ing in the area, and its entry into the New York largest of 12 banks with offices in the county. Of metropolitan area can reasonably be anticipated to its 33 offices, 32 are located in Westchester County, increase the already high level of competition in and over 85 per cent of its deposits originate in that that area, without significant adverse effects on area. Westchester County is located in New York’s smaller banks and without raising significant bar­ Third Banking District; it is also a part of the New riers to entry by others into the area. Consumma­ York City metropolitan area, and banks headquar­ tion of the proposal would also have the effect of tered in the city, as well as banks headquartered removing the home office protection currently ac­ in the Third District, are permitted under New corded the City of White Plains under the law, York law to branch throughout the county, subject permitting branching into the city by banks head­ to the “home office protection” provision of the quartered elsewhere in the Third District or in New law. Five of the largest banks in New York City York City. have a total of 45 offices in the county. The only The proposed transaction would not result in a larger bank headquartered in the county, The monopoly or be in furtherance of any combination, County Trust Company ($861 million deposits), conspiracy, or attempt to monopolize the business recently became a subsidiary of a registered bank of banking in any relevant area. Approval of the holding company. application and consummation of the proposal Applicant’s subsidiaries are located in separate would not substantially lessen competition, tend to Banking Districts in upstate New York (Districts create a monopoly, or restrain trade in any section 6, 7, 8, and 9), and no office of any of them is of the country. located within 150 miles of an office of NBW. Financial and managerial resources and future NBW does not compete in any of the upstate areas prospects. Applicant’s financial condition, and that served by Applicant’s subsidiaries, and banks in of its subsidiary banks, is considered satisfactory. Applicant’s system derive no significant amount of The management of Applicant and its banks is deposits or loans from Westchester County. Under competent, and their prospects appear favorable. State law, neither NBW nor any of Applicant’s sub­ The financial condition of NBW is reasonably sidiaries may branch into an area served by the satisfactory, its management is capable, and its other. Development of future competition between prospects appear favorable regardless of whether NBW and Applicant would therefore appear to de­ the present proposal is consummated. pend either upon NBW’s joining another holding Considerations relating to these factors are con­ company which would compete in upstate New sistent with approval of the proposal, although York, or upon the acquisition by Applicant of an­ they provide no significant weight in support of other bank in the Third District or the New York that action. City area. In view of NBW’s retail orientation and Convenience and needs of the communities in­ its lack of a strong base in a central city, its for­ volved. While consummation of Applicant’s pro­ mation of a new holding company does not appear posal would have no immediate effect on the serv­ likely, and its joining with another existing holding ices provided by its present subsidiaries, the result­ company does not appear clearly preferable to the ing increase in Applicant’s size and the increase present proposal. Similarly, although it is possible in the geographical breadth of its system would that Applicant could enter into competition in the facilitate improvements in the scope and quality Westchester County area through acquisition of a of the services which each of the subsidiaries pro­ smaller bank, that alternative would not appear so vides. Similarly, although the banking needs of preferable competitively as to necessitate rejection customers in the Westchester County and New of the present proposal. York City areas are well served by the many banks With respect to the effect of the proposal on which are located in those areas, and although competing banks in Westchester County, it does NBW is itself an aggressive, full-service institution, not appear that the size of Applicant, when related consummation of the proposal would make it pos­ to other organizations competing in the area, is such sible for improvements to be made in NBW’s serv­ as to involve any decisive or unfair competitive ice offering. As a subsidiary of Applicant, NBW advantage which would be to the detriment of the would have increased ability to arrange loan par­ continued viability and competitive effectiveness of ticipations to better serve those customers whose NBW’s competitors. On the contrary, Applicant requirements are beyond its lending capacity. Ap- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 751 plicant also proposes that the bank will oiler a that the acquisition so approved shall not be con­ broader range of trust and international services. summated (a) before the thirtieth calendar day Considerations bearing upon the convenience following the date of this Order, or (b) later than and needs of the communities involved lend some three months after the date of this Order, unless support for approval of the application. such period is extended for good cause by the Summary and conclusion. On the basis of all the Board or by the Federal Reserve Bank of Boston relevant facts contained in the record, and in the pursuant to delegated authority. light of the factors set forth in section 3(c) of the Dated at Washington, D.C., this 25th day of Act, it is the Board’s judgment that the proposed August 1969. action would be in the public interest, and that the application should be approved. By order of the Board of Governors. Voting for this action: Chairman Martin and Govnors Robertson, Mitchell, Maisel, Brimmer, and Sher­ NORTHEASTERN BANKSHARE rill. Absent and not voting: Governor Daane. ASSOCIATION, (Signed) Elizabeth L. Carmichael, LEWISTON, MAINE Assistant Secretary. In the matter of the application of Northeastern [seal] Bankshare Association, Lewiston, Maine, for ap­ proval of acquisition of at least 51 per cent of the Statement voting shares of the Westbrook Trust Company, Westbrook, Maine. Northeastern Bankshare Association, Lewiston, Maine (“Applicant”), a registered bank holding Order Approving Application Under Bank company, has applied to the Board of Governors, Holding Company Act pursuant to section 3(a)(3) of the Bank Holding There has come before the Board of Governors, Company Act of 1956, for prior approval of the pursuant to section 3(a)(3) of the Bank Holding acquisition of at least 51 per cent of the voting Company Act of 1956 (12 U.S.C. 1842(a)(3)), shares of the Westbrook Trust Company, West­ and section 222.3(a) of Federal Reserve Regula­ brook, Maine (“Bank”). tion Y (12 CFR 222.3(a)), an application by Views and recommendation of supervisory au­ Northeastern Bankshare Association, Lewiston, thority. As required by section 3(b) of the Act, the Maine, a registered bank holding company, for the Board notified the Deputy Bank Commissioner of Board’s prior approval of the acquisition of at least the State of Maine of receipt of the application 51 per cent of the voting shares of the Westbrook and requested his views and recommendation Trust Company, Westbrook, Maine. thereon. The Deputy Commissioner recommended As required by section 3(b) of the Act, the that the application be given favorable considera­ Board gave written notice of receipt of the applica­ tion. tion to the Deputy Bank Commissioner of the State Statutory considerations. Section 3(c) of the Act of Maine and requested his views and recommen­ provides that the Board shall not approve an acqui­ dation. He recommended the application be given sition that would result in a monopoly or would be favorable consideration. in furtherance of any combination or conspiracy to Notice of receipt of the application was pub­ monopolize or to attempt to monopolize the business lished in the Federal Register on July 9, 1969 (34 of banking in any part of the United States. Nor may Federal Register 11394), providing an opportunity the Board approve any other proposed acquisition, for interested persons to submit comments and the effect of which, in any section of the country, views with respect to the proposed acquisition. A may be substantially to lessen competition, or to tend copy of the application was forwarded to the United to create a monopoly, or which in any other man­ States Department of Justice for its consideration. ner would be in restraint of trade, unless the Board Time for filing comments and views has expired finds that the anticompetitive effects of the trans­ and all those received have been considered by the action are clearly outweighed in the public interest Board. by the probable effect of the transaction in meeting It is hereby ordered, for the reasons set forth the convenience and needs of the community to be in the Board’s Statement of this date, that said served. In each case, the Board is required to take application be and hereby is approved, provided into consideration the financial and managerial re- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

752 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 sources and future prospects of the bank holding The City of Westbrook, with a population of less company and the banks concerned, and the con­ than 15,000, is located in the southeast corner of venience and needs of the community to be served. the State directly west and adjacent to Portland, Competitive effect of the proposed transaction. the largest city in the State. The distance between Applicant controls about $54 million in deposits,1 downtown Portland and Westbrook is six miles. and is the seventh largest banking organization and Bank provides banking services to the towns imme­ the smallest of three bank holding companies oper­ diately surrounding its four offices in the Westbrook ating in the State of Maine. The 10 largest banking area and in North Windham. It competes with the organizations, which include the three bank holding above-mentioned three Portland banks, which to­ companies operating in the State, control $825 gether operate 26 offices and control 92 per cent million in total deposits, representing 76 per cent of the total deposits of banks located in Bank’s of the total deposits held by all commercial banks service area. Westbrook holds the remaining 8 per in the State. Applicant’s four subsidiary banks hold cent. 5 per cent of all bank deposits in Maine. Consum­ None of Applicant’s present subsidiaries pres­ mation of Applicant’s proposal would increase Ap­ ently compete to any significant extent with Bank. plicant’s share of such deposits to 6.3 per cent, The nearest office of a subsidiary bank of Appli­ whereby Applicant would become the sixth largest cant, the Eastern Trust and Banking Company, is banking organization, yet remain the smallest bank located in Bangor, 140 miles from Westbrook. holding company, in the State of Maine.2 Applicant does not derive any significant business Applicant’s largest and only wholly-owned sub­ from the area served by Bank, and Bank does not sidiary bank is Eastern Trust and Bank Company, compete to a significant extent outside of that area. Bangor, Maine, which has deposits of $31 million. Acquisition of Bank by Applicant, therefore, would Applicant’s other subsidiary banks which are not eliminate existing competition. directly owned hy Eastern Trust and Banking Com­ Under Maine Banking Law, the only method by pany are Lincoln Trust Company, Lincoln ($8 which any of Applicant’s present subsidiaries can million deposits); Millinocket Trust Company, branch into Cumberland County is by de novo Millinocket ($9 million deposits); and Guilford entry into any town therein that has no banking Trust Company, Guilford ($6 million deposits); all office. There are at present eight such communities are located in the State of Maine. in the area served by Bank. However, because of Westbrook Trust Company ($15 million de­ the small population of four of the towns, the posits) is the smallest of four banks headquartered highly concentrated banking market, and the dis­ in Cumberland County, and holds 7 per cent of tance that all are from any subsidiary of Applicant, the $205 million commercial bank deposits in the the possibility of Applicant’s entry into this area county. The balance is held by the second, third, by de novo branching is remote. Therefore, it does and fifth ranked banking organizations in the State not appear that any significant potential competi­ (all located in Portland) which control 39 per cent, tion would be foreclosed by the consummation of 26 per cent, and 26 per cent, respectively. A branch the proposal. office of Maine’s largest banking organization holds The proposed transaction would not result in a the remaining 2 per cent. monopoly or be in furtherance of any combination, conspiracy or attempt to monopolize the business 'All banking data are as of December 31, 1968, unless of banking in any relevant area. Approval of the otherwise noted, and refer to insured commercial banks application and consummation of the proposal adjusted to reflect holding company acquisitions. would not substantially lessen competition, tend to 2 The next largest banking organization to Applicant is First-Manufacturers National Bank of Lewiston-Auburn, create a monopoly, or restrain trade in any section Lewiston, Maine (“First Bank”), with $64 million in de­ of the country. posits. First Bank and The Peoples National Bank of Farmington, Farmington, Maine ("Peoples Bank”), with Financial and managerial resources and future $7 million in deposits, had planned to affiliate as sub­ prospects. The financial conditions and manage­ sidiaries of First Bankshare Association, and, on March ments of Applicant, its subsidiary banks, and those 3, 1969, the Board approved the formation of that bank holding company. Subsequently, both First Bank and of Bank, are satisfactory, and their prospects ap­ Peoples Bank entered into an agreement to affiliate with pear favorable. Considerations relating to the'bank­ Applicant, with respect to which Applicant has applications pending. Should the First Bankshare Association proposal ing factors are consistent with approval of the be consummated, Applicant would be the seventh larg­ application. est banking organization, and the smallest of four bank holding companies, in the State of Maine. Convenience and needs of the communities in- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 753 volved. Consummation of the proposed transaction interested persons to submit comments and views would have no effect on customers of Applicant’s with respect to the proposal. A copy of the applica­ present subsidiaries. tion was forwarded to the United States Department All major banking services are available in the of Justice for its consideration. The time for filing area served by Bank from banks located in and near comments and views has expired and all those re­ that area. However, consummation of the proposal ceived have been considered by the Board. would enable Bank to offer a more complete line of It is hereby ordered, for the reasons set forth banking services, thus constituting it a more mean­ in the Board’s Statement of this date, that said ingful alternative source of services now provided application be and hereby is approved, provided that by larger banks in the area. To that extent, the the action so approved shall not be consummated convenience of the banking public in the area would (a) before the thirtieth calendar day following the be served by consummation of the proposal. date of this Order or (b) later than three months Considerations under this factor lend some after the date of this Order, unless such time shall weight toward approval of the application. be extended for good cause by the Board or by the Summary and conclusion. On the basis of all Federal Reserve Bank of Atlanta pursuant to dele­ relevant facts contained in the record, and in light gated authority, and that The Tallahassee Bank of the factors set forth in section 3(c) of the Act, North be open for business not later than six it is the Board’s judgment that the proposed trans­ months after the date of this Order. action would be in the public interest and that the Dated at Washington, D.C., this 25th day of application should be approved. August, 1969. BARNETT NATIONAL SECURITIES By order of the Board of Governors. CORPORATION, Voting for this action: Chairman Martin and Gov­ JACKSONVILLE, FLORIDA ernors Robertson, Mitchell, Maisel, Brimmer and Sher­ rill. Absent and not voting: Governor Daane. In the matter of the application of Barnett (Signed) Robert P. Forrestal, National Securities Corporation, Jacksonville, Flor­ Assistant Secretary. ida, for approval of acquisition of 80 per cent or more of the voting shares of The Tallahassee Bank [seal] North, Tallahassee, Florida, a proposed new hank. Statement Order Approving Acquisition of Bank Stock Barnett National Securities Corporation (“Bar­ by Bank Holding Company nett”), a registered bank holding company located There has come before the Board of Governors, in Jacksonville, Florida, has applied to the Board pursuant to section 3(a)(3) of the Bank Holding of Governors, pursuant to section 3(a)(3) of the Company Act of 1956 (12 U.S.C. 1842(a)(3)) Bank Holding Company Act of 1956 (12 U.S.C. and section 222.3(a) of Federal Reserve Regula­ 1842(a)(3)), for prior approval of the acquisition tion Y (12 CFR 222.3(a)), an application by of 80 per cent or more of the voting shares of The Barnett National Securities Corporation, Jackson­ Tallahassee Bank North, Tallahassee, Florida ville, Florida, for the Board’s prior approval of the (“Bank”), a proposed new bank. acquisition of 80 per cent or more of the voting Fiews and recommendation of supervisory au­ shares of The Tallahassee Bank North, Tallahassee, thority. Because the proposed new bank is to be a Florida, a proposed new bank. State bank, the Board notified the Commissioner Inasmuch as the proposed new bank is to be a of Banking of the State of Florida of the receipt State bank, the Board, pursuant to section 3(b) of of the application, as required by section 3(b) of the Act, gave written notice of receipt of the appli­ the Act, and requested his views and recommenda­ cation to the Commissioner of Banking of the State tion thereon. In response, the Commissioner rec­ of Florida, and requested his views and recommen­ ommended approval of the application. dation in respect thereto. In response, the Commis­ Statutory considerations. Section 3(c) of the sioner recommended approval of the application. Act provides that the Board shall not approve an Notice of receipt of the application was published acquisition that would result in a monopoly or in the Federal Register on June 7, 1969 (34 Fed­ would be in furtherance of any combination or eral Register 9104), providing an opportunity for conspiracy to monopolize or to attempt to monop- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

754 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 olize the business of banking in any part of the does not occupy a dominant or monopoly position United States. Nor may the Board approve a pro­ in the relevant market. posed acquisition the effect of which, in any section Bank is to be newly organized, and it will not be of the country, may be substantially to lessen compe­ established unless the application is approved. There tition, or to tend to create a monopoly, or which in is, therefore, no existing competition to be elim­ any other manner would be in restraint of trade, inated by the acquisition as no banking alternative unless the Board finds that the anticompetitive is to be eliminated; and no potential competition is effects of the proposed transaction are clearly out­ to be foreclosed. Moreover, no increase in concen­ weighed in the public interest by the probable tration of banking resources would immediately re­ effect of the transaction in meeting the convenience sult in any area, and, based upon Bank’s projected and needs of the community to be served. In each deposits of $3.5 million at the end of three years case the Board is required to take into considera­ of operation, no significant increase in concentra­ tion the financial and managerial resources and tion is foreseen in the near future. future prospects of the bank holding company and All seven of the Tallahassee banks are located the banks concerned, and the convenience and needs within 4.2 miles of the proposed site of Bank. The of the community to be served. Tallahassee Bank and Trust Company is located 2.7 Competitive effect of proposed transaction. Bar­ miles from Bank’s site; it derives some business nett is the fourth largest bank holding company and from Bank’s designated service area, but not a sub­ the fourth largest banking organization in the State stantial amount. Four banks are located in the area of Florida. It holds 4.8 per cent of the total de­ between Bank’s proposed site and The Tallahassee posits ' held by all Florida banking organizations Bank and Trust Company’s downtown location. and it operates 15 subsidiary banks which have Two of these, with deposits of $33 million and $34 total deposits of $555 million. One of its subsidiary million, respectively, approximate Barnett’s sub­ banks, The Tallahassee Bank and Trust Company, sidiary in size. Another, a bank with deposits of is located in Tallahassee, Leon County, Florida. No $3.3 million, is affiliated with two other banks other Barnett subsidiary bank is located within suf­ which, as earlier discussed, together possess the ficient distance of Leon County to be regarded as a second largest share of County deposits; this bank convenient alternative for banking services required has received permission to relocate to within oneby County residents. quarter mile of Bank’s site. The other bank in this At the present time there are seven commercial area has deposits of $10.6 million. There should be banks operating in Leon County. All of these are no harmful effect on any competing bank resulting located in Tallahassee. It is proposed that Bank, from Barnett’s acquisition of Bank. when established, will be located just outside the Based upon the foregoing, the Board concludes city limits of Tallahassee, and will serve an area that consummation of the proposed acquisition with a population of 14,000. The proposed acquisi­ would not result in a monopoly or be in furtherance tion will result in Barnett’s controlling two of the of any combination, conspiracy, or attempt to eight commercial banks which will then operate in monopolize the business of banking in any area, Leon County. and would not substantially lessen competition, tend Barnett is the only bank holding company with to create a monopoly, or restrain trade in any sec­ a subsidiary bank in Leon County. The three larg­ tion of the County. est banks there hold 82.5 per cent of total County Financial and managerial resources and future deposits. The Tallahassee Bank and Trust Com­ prospects. Barnett’s financial condition, manage­ pany, with 31.6 per cent, holds the largest share ment, and prospects are regarded as reasonably of such deposits. Three Leon County banks, among satisfactory. These conclusions apply to Barnett’s which is the second largest bank in the County, are subsidiary banks. affiliated by reason of common ownership, and Bank’s organization has received the preliminary together hold 31.2 per cent of such deposits. The approval of the Commissioner of Banking of the third of the top three commercial banks located in State of Florida. Its proposed capital appears ade­ Leon County holds 25.1 per cent of total County quate, its proposed management competent, and its deposits. The Board finds, therefore, that Barnett prospects appear favorable. Considerations relating to the banking factors 1 All banking data are as of December 31, 1968, refer to are regarded as consistent with approval of the ap­ insured commercial banks, and include all holding com­ pany applications approved by the Board. plication. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 755 Convenience and needs of the communities in­ nity for interested persons to submit comments volved. Bank is to be located just outside the city and views with respect to the proposed transaction. limits of Tallahassee and will serve the northern A copy of the applicatoin was forwarded to the portion of the city and nearby suburban areas. United States Department of Justice for its con­ There is no evidence that banking needs in this sideration. Time for filing comments and views has area are going unserved. However, the convenience expired and all those received have been con­ of residents of the area would be served by estab­ sidered by the Board. lishment of Bank as a local alternative for banking It is hereby ordered, for the reasons set forth services. Commercial development, present and po­ in the Board’s Statement of this date, that said ap­ tential, offers a promising economic future to the plication be and'hereby is approved, provided that service area, and Bank’s establishment could pro­ the action so approved shall not be consummated vide additional economic stimulus. (a) before the thirtieth calendar day following the Considerations relating to the convenience and date of this Order, or (b) later than three months needs of the community which Bank would serve after the date of this Order, unless such period is provide some weight in favor of approval of the extended for good cause by the Board or by the application. Federal Reserve Bank of Chicago pursuant to dele­ Summary and conclusion. On the basis of all gated authority. relevant facts contained in the record and in the Dated at Washington, D. C., this 27th day of light of the factors set forth in section 3(c) of the August, 1969. Act, it is the Board’s judgment that the proposed By order of the Board of Governors. acquisition would be in the public interest, and that the application should be approved. Voting for this action: Chairman Martin and Gov­ ernors Robertson, Maisel, Brimmer, Daane, and Sherril. Absent and not voting: Governor Mitchell. FIRST WISCONSIN BANKSHARES (Signed) Robert P. Forrestal, CORPORATION, Assistant Secretary, MILWAUKEE, WISCONSIN [seal] In the matter of the application of First Wiscon­ sin Bankshares Corporation, Milwaukee, Wisconsin, Statement for approval of the acquisition of 80 per cent or more of the voting shares of Wisconsin State Bank, First Wisconsin Bankshares Corporation, Mil­ Green Bay, Wisconsin. waukee, Wisconsin (“Applicant”), a registered bank holding company, has applied to the Board Order Approving Acquisition of Bank Stock of Governors, pursuant to section 3(a)(3) of the by Bank Holding Company Bank Holding Company Act of 1956 (12 U.S.C. There has come before the Board of Governors, 1842(a)(3)), for prior approval of the acquisition pursuant to section 3(a)(3) of the Bank Holding of 80 per cent or more of the voting shares of Company Act of 1956 (12 U.S.C. 1842(a)(3)), Wisconsin State Bank, Green Bay, Wisconsin and section 222.3(a) of Federal Reserve Regula­ (“Bank”). tion Y (12 CFR 222.3(a)), an application by First Views and recommendation of supervisory au­ Wisconsin Bankshares Corporation, Milwaukee, thority. As required by section 3(b) of the Act, the Wisconsin, for the Board’s prior approval of the ac­ Board notified the Wisconsin Commissioner of quisition of 80 per cent or more of the voting Banking of receipt of the application and requested shares of Wisconsin State Bank, Green Bay, Wis­ his views and recommendation thereon. The Com­ consin. missioner replied that his office would not dis­ As required by section 3(b) of the Act, the approve the application. Board gave written notice of receipt of the applica­ Statutory considerations. Section 3(c) of the tion to the Commissioner of Banking for the State Act provides that the Board shall not approve an of Wisconsin and requested his views and recom­ acquisition that would result in a monopoly or mendation. The Commissioner replied that his of­ would be in furtherance of any combination or fice would not disapprove the application. conspiracy to monopolize the business of banking Notice of receipt of the application was pub­ in any part of the United States. Nor may the lished in the Federal Register on April 23, 1969 Board approve any other proposed acquisition the (34 Federal Register 6810), providing an opportu­ effect of which, in any section of the country, may Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

756 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 be substantially to lessen competition, or to tend total), is the area’s fourth largest banking orga­ to create a monopoly, or which in any other man­ nization. Smaller competing banks in the area in­ ner would be in restraint of trade, unless the Board clude two each in Green Bay and the City of finds that the anticompetitive effects of the pro­ DePere, and another in the township of Ashwau­ posed transaction are clearly outweighed in the benon. public interest by the probable effect of the transac­ The aforedescribed service area of Bank’s only tion in meeting the convenience and needs of the office does not overlap the areas served by Appli­ community to be served. In each case the Board cant’s subsidiaries, the closest subsidiary to Bank is required to take into consideration the financial being located in Oshkosh, approximately 50 miles and managerial resources and future prospects of southwest of Green Bay. Only five of Bank’s ac­ the bank holding company and the banks con­ counts, totaling $15,000, originate in the areas cerned, and the convenience and needs of the com­ served by Applicant’s banks. The absence of any munity to be served. significant competition between Applicant’s sub­ Competitive effect of proposed transaction. The sidiaries and Bank is explained principally by the 10 largest banking organizations in Wisconsin con­ distances separating them, the intervening cities and trol deposits of almost $3.3 billion, representing towns, and the existence of State laws restricting 39.5 per cent of the total commercial bank de­ branch banking. These factors also support the con­ posits in the State.1 The 10 organizations include clusion that no substantial competition is likely to eight of the 11 Wisconsin-based bank holding com­ develop in the future. panies now in operation or whose formation has As earlier stated, Bank competes with three been approved by the Board. There are also three larger and two smaller banks in Green Bay. In the Minnesota-based bank holding companies operat­ last five years Bank had the smallest increase in ing banks in Wisconsin with deposits representing loans and the next to lowest deposit growth of all 1.3 per cent of the total for the State. Applicant, Green Bay banks. As hereinafter discussed, Bank’s the largest banking organization in the State, prospects under its present form and scope of oper­ controls 13 banks and 16.8 per cent of Wiscon­ ation are not too favorable. However, as a sub­ sin’s total deposits. The acquisition of Bank would sidiary of Applicant it would appear that Bank increase its share of the State’s deposits by less could significantly better its competitive position than .3 per cent. through employment of more aggressive methods Bank is located in Green Bay, the county seat of operation and rendition of expanded services. of Brown County, approximately 115 miles north The resulting increase in competition is not rea­ of Milwaukee. Bank’s primary service area, as sonably foreseen as having any significantly ad­ defined by Applicant, is the Green Bay Urbanized verse competitive effect on the other banks operat­ Area. There are nine banks operating 14 banking ing in this area. offices in this service area. In addition, the estab­ On the basis of the foregoing, the Board con­ lishment of two new branch offices in the area has cludes that consummation of the proposal would recently been authorized. Kellogg Citizens National not substantially affect the present State-wide con­ Bank, Green Bay ($97 million deposits), and centration of banking deposits nor present levels Peoples Bank of Green Bay ($51 million deposits) of such concentration in the area served by Bank, are, respectively, the first and second largest banks nor would it tend to create a monopoly or be in in the area, and subsidiaries of the fourth and sec­ restraint of trade, nor lessen competition, but ond largest holding companies in the State. Com­ rather, that competition would probably be strength­ bined, these banks hold 65 per cent of the commer­ ened by Applicant’s acquisition of Bank. cial bank deposits of 16 banks (23 offices) located in Financial and managerial resources and future Brown County, and are the only banks in the county prospects. The financial conditions of Applicant presently affiliated with holding companies. Appli­ and its subsidiary banks are considered to be sat­ cant’s acquisition of Bank would increase the per­ isfactory, their managements competent, and their centage of deposits held by holding companies to prospects favorable. 75 per cent. West Side State Bank ($35 million Bank’s financial condition, while considered to deposits) is the third largest bank in the area. Bank, be fair, evidences a need for strengthening of its with $23 million in deposits (10 per cent of the area capital structure. Bank’s chief executive officer is qualified and experienced. However, equally qual­ ’All banking data are as of December 31, 1968, unless otherwise noted. ified successor management is lacking—a significant Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 757 consideration in terms of Bank’s growth potential. relevant facts contained in the record, and in the Absent the proposed affiliation, Bank’s prospects light of the factors set forth in section 3(c) of the are viewed as only fair. Act, it is the Board’s judgment that the proposed Assuming consummation of the proposal, how­ transaction would be in the public interest and that ever, Bank’s prospects would improve significantly. the application should be approved. Applicant proposes to assist Bank in providing im­ proved and expanded services, and asserts its ca­ MARSHALL & ILSLEY BANK STOCK pabilities and desire to provide Bank with any CORPORATION, needed trained personnel, and to aid in providing MILWAUKEE, WISCONSIN capital as required. The record indicates that Ap­ plicant is capable of satisfying Bank’s needs in In the matter of the application of Marshall & these and other respects. Therefore, considerations llsley Bank Stock Corporation, Milwaukee, Wis­ under the banking factors appear to weigh in favor consin, for approval of acquisition of 80 per cent of approval of the application. or more of the voting shares of Adams County Convenience and needs of the communities in­ State Bank, Adams, Wisconsin. volved. The City of Green Bay is reported to be the fifth most rapidly growing city in the United Order Approving Acquisition of Bank Stock States, its population having increased from 52,700 by Bank Holding Company in 1950 to 62,900 in 1960. Its 1968 population was There has come before the Board of Governors, estimated to be 86,300. Green Bay, with one of the pursuant to section 3(a)(3) of the Bank Holding finest harbors on the Great Lakes, is an industrial Company Act of 1956 (12 U.S.C. 1842(a)(3)) center producing a number of diversified products, and section 222.3(a) of Federal Reserve Regula­ and during the period from 1960 to 1967 retail tion Y (12 CFR 222.3(a)), an application by sales are reported to have increased 38 per cent Marshall & llsley Bank Stock Corporation, Mil­ and employment 37 per cent. Numerous economic waukee, Wisconsin, a registered bank holding indicators reflect a relatively rapid economic growth company, for the Board’s prior approval of the in the Green Bay area generating demands for acquisition of 80 per cent or more of the voting larger bank credits and expanded and somewhat shares of Adams County State Bank, Adams, Wis­ more sophisticated banking services. A continuing consin. increase in this demand is reasonably foreseen, par­ As required by section 3(b) of the Act, the ticularly in the light of the proposed construction of Board gave written notice of receipt of the appli­ a Green Bay extension of the University of Wis­ cation to the Commissioner of Banking for the consin, slated to be operational in the fall of this State of Wisconsin and requested his views and year with an estimated initial enrollment of 1,500 students. recommendation. The Commissioner offered no objection to approval of the application. Although the major banking needs of the area are presently being satisfied, the service demands Notice of receipt of the application was pub­ anticipated by the economic growth forecast for lished in the Federal Register on May 8, 1969 (34 the area indicate the need for a significant change Federal Register 7473), providing an opportunity in Bank’s competitive position if it is to contribute for interested persons to submit comments and to and share in the area’s growth. Applicant as­ views with respect to the proposal. A copy of the serts that consummation of this proposal would application was forwarded to the Department of result in improved services to the community Justice for its consideration. Time for filing com­ served by Bank through an increase in Bank’s ments and views has expired and all those received lending limit and through Bank’s immediate access have been considered by the Board. to the computer services of Applicant’s subsidiary It is hereby ordered, for the reasons set forth banks. Applicant would also make available to in the Board’s Statement of this date, that said Bank’s customers assistance in the area of interna­ application be and hereby is approved, provided tional banking and in trust and estate matters. that the acquisition so approved shall not be con­ Considerations regarding the convenience and summated (a) before the thirtieth calendar day needs of the communities concerned are consistent following the date of this Order or (b) later than with and weigh toward approval of this application. three months after the date of this Order, unless Summary and conclusion. On the basis of all such period is extended for good cause by the Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

758 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 Board or by the Federal Reserve Bank of Chicago following the date of this Order or (b) later than pursuant to delegated authority. three months after the date of this Order, unless such period is extended for good cause by the Dated at Washington, D. C., this 4th day of Board or by the Federal Reserve Bank of Chicago September 1969. pursuant to delegated authority. By order of the Board of Governors. Dated at Washington, D. C., this 4th day of Voting for this action: Chairman Martin and Gov­ September 1969. ernors Robertson, Mitchell, Daane, Maisel, and Brim­ mer. Absent and not voting: Governor Sherrill. By order of the Board of Governors. (Signed) Robert P. Forrestal, Voting for this action: Chairman Martin and Gov­ Assistant Secretary. ernors Robertson, Mitchell, Daane, Maisel, and Brim­ mer. Absent and not voting: Governor Sherrill. [seal] (Signed) Robert P. Forrestal, Assistant Secretary. In the matter of the application of Marshal/ & llsley Bank Stock Corporation, Milwaukee, Wis­ [seal] consin, for approval of acquisition of 80 per cent or more of the voting shares of The People’s Bank, In the matter of the application of Marshall & Coloma, Wisconsin. llsley Bank Stock Corporation, Milwaukee, Wis­ consin, for approval of acquisition of 80 per cent Order Approving Acquisition of Bank Stock or more of the voting shares of The Portage County by Bank Holding Company Bank, Almond, Wisconsin. There has come before the Board of Gover­ Order Approving Acquisition of Bank Stock nors, pursuant to section 3(a)(3) of the Bank by Bank Holding Company Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)) and section 222.3(a) of Federal There has come before the Board of Governors, Reserve Regulation Y (12 CFR 222.3(a)), an pursuant to section 3(a)(3) of the Bank Holding application by Marshall & llsley Bank Stock Cor­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) poration, Milwaukee, Wisconsin, a registered bank and section 222.3(a) of Federal Reserve Regula­ holding company, for the Board’s prior approval tion Y (12 CFR 222.3(a)), an application by of the acquisition of 80 per cent or more of the Marshall & llsley Bank Stock Corporation, Mil­ voting shares of The People’s Bank, Coloma, Wis­ waukee, Wisconsin, a registered bank holding com­ consin. pany, for the Board’s prior approval of the acquisi­ As required by section 3(b) of the Act, the tion of 80 per cent or more of the voting shares of Board gave written notice of receipt of the appli­ The Portage County Bank, Almond, Wisconsin. cation to the Commissioner of Banking for the As required by section 3(b) of the Act, the State of Wisconsin and requested his views and Board gave written notice of receipt of the appli­ recommendation. The Commissioner offered no cation to the Commissioner of Banking for the objection to approval of the application. State of Wisconsin and requested his views and Notice of receipt of the application was pub­ recommendation. The Commissioner offered no ob­ lished in the Federal Register on May 8, 1969 jection to approval of the application. (34 Federal Register 7473), providing an opor- Notice of receipt of the application was pub­ tunity for interested persons to submit comments lished in the Federal Register on May 8, 1969 (34 and views with respect to the proposal. A copy of Federal Register 7473), providing an opportunity the application was forwarded to the Department for interested persons to submit comments and of Justice for its consideration. Time for filing com­ views with respect to the proposal. A copy of the ments and views has expired and all those received application was forwarded to the Department of have been considered by the Board. Justice for its consideration. Time for filing com­ It is hereby ordered, for the reason set forth ments and views has expired and all those received in the Board’s Statement of this date, that said have been considered by the Board. application be and hereby is approved, provided It is hereby ordered, for the reasons set forth that the acquisition so approved shall not be con­ in the Board’s Statement of this date, that said ap­ summated (a) before the thirtieth calendar day plication be and hereby is approved, provided that Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 759 the acquisition so approved shall not be consum­ in the Board’s Statement of this date, that said mated (a) before the thirtieth calendar day follow­ application be and hereby is approved, provided ing the date of this Order or (b) later than three that the acquisition so approved shall not be con­ months after the date of this Order, unless such summated (a) before the thirtieth calendar day period is extended for good cause by the Board following the date of this Order or (b) later than or by the Federal Reserve Bank of Chicago pur­ three months after the date of this Order, unless suant to delegated authority. such period is extended for good cause by the Board or by the Federal Reserve Bank of Chicago Dated at Washington, D. C., this 4th day of pursuant to delegated authority. September 1969. Dated at Washington, D. C., this 4th day of By order of the Board of Governors. September 1969. Voting for this action: Chairman Martin and Gov­ By order of the Board of Governors. ernors Robertson, Mitchell, Daane, Maisel, and Brim­ mer. Absent and not voting: Governor Sherrill. Voting for this action: Chairman Martin and Gov­ (Signed) Robert P. Forrestal, ernors Robertson, Mitchell, Daane, Maisel, and Brim­ mer. Absent and not voting: Governor Sherrill. Assistant Secretary. (Signed) Robert P. Forrestal, [seal] Assistant Secretary. in the matter of the application of Marshall & [seal] llsley Bank Stock Corporation, Milwaukee, Wis­ consin, for approval of acquisition of 80 per cent Statement or more of the voting shares of Westfield State Marshall & llsley Bank Stock Corporation, Mil­ Bank, Westfield, Wisconsin. waukee, Wisconsin (“Applicant”), a registered bank holding company, has applied to the Board Order Approving Acquisition of Bank Stock of Governors, pursuant to section 3(a)(3) of by Bank Holding Company the Bank Holding Company Act of 1956 (12 There has come before the Board of Governors, U.S.C. 1842(a)(3)), for prior approval of the pursuant to section 3(a)(3) of the Bank Holding acquisition of 80 per cent or more of the voting Company Act of 1956 (12 U.S.C. 1842(a)(3)) shares of Adams County State Bank, Adams and section 222.3(a) of Federal Reserve Regula­ (“Adams Bank”); The Portage County Bank, Al­ tion Y (12 CFR 222.3(a)), an application by mond (“Almond Bank”); The People’s Bank, Co­ Marshall & llsley Bank Stock Corporation, Mil­ loma (“Coloma Bank”); and Westfield Bank, waukee, Wisconsin, a registered bank holding com­ Westfield (“Westfield Bank”), all of Wisconsin, pany, for the Board’s prior approval of the acquisi­ sometimes referred to herein collectively as the tion of 80 per cent or more of the voting shares “Banks.” While each of the applications has been of Westfield State Bank, Westfield, Wisconsin. separately considered and is the subject of a sep­ As required by section 3(b) of the Act, the arate Board Order herein, because of facts and Board gave written notice of receipt of the applica­ circumstances common to all the applications, this tion to the Commissioner of Banking for the State Statement contains the Board’s findings and conclu­ of Wisconsin and requested his views and recom­ sions with respect to the four applications. mendation. The Commissioner offered no objection Applicant controls seven banks (six of which to approval of the application. are in the Milwaukee area), with aggregate total Notice of receipt of the application was pub­ deposits of approximately $560 million.1 The Banks lished in the Federal Register on May 8, 1969 (34 are located in four adjoining counties northwest of Federal Register 7474), providing an opportunity Milwaukee, and none of them is located less than for interested persons to submit comments and 75 miles from any of Applicant’s present sub­ views with respect to the proposal. A copy of the sidiaries. The Banks have aggregate deposits of application was forwarded to the Department of Justice for its consideration. Time for filing com­ 1 Unless otherwise noted, banking data are as of Decem­ ments and views has expired and all those received ber 31, 1968, refer to insured commercial banks, and have have been considered by the Board. been adjusted to reflect holding company formations and acquisitions for which Board approvals have been issued It is hereby ordered, for the reasons set forth to date. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

760 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 approximately $27 million, as follows: Coloma lead bank is the principal correspondent of the four Bank, $11 million; Adams Bank, $7 million; West­ Banks and also holds correspondent balances of six field Bank, $5 million; and Almond Bank, $4 mil­ other banks which compete within the Banks’ serv­ lion. A majority of the shares of each Bank is held ice areas. However, apart from these correspondent by two shareholders, who dominate the manage­ accounts, the amount of deposits and loans which ment of each Bank. This affiliation has existed as Applicant’s group derives from the Banks’ service to three of the Banks since 1945, and as to the areas is insignificant. Similarly insignificant are the fourth since 1952. amounts of deposits and loans which the Banks Views and recommendation of supervisory au­ derive from the service areas of Applicant’s sub­ thority. As required by section 3(b) of the Act, sidiaries. notice of receipt of the applications was given to Four other banks are located in the combined the Wisconsin Commissioner of Banking, and his service areas of the Banks, and the latter hold 54 views and recommendations were requested. The per cent of the aggregate deposits of these eight Commissioner offered no objection to approval of banks. Twenty-five banks (with deposits ranging the applications. from $1 million to $34 million) compete within Statutory considerations. Section 3(c) of the Act the Banks’ combined service areas, and the Banks provides that the Board shall not approve an ac­ hold 11 per cent of the aggregate deposits of these quisition that would result in a monopoly or would 25 banks. be in furtherance of any combination or conspiracy Each of the Banks is the only bank located in to monopolize or to attempt to monopolize the their home cities (which are very small), and except business of banking in any part of the United for Coloma Bank, which has four offices, each Bank States. Nor may the Board approve a proposed has only one office. The shortest distance between acquisition the effect of which, in any section of any two of the Banks’ offices is nine miles. When the country, may be substantially to lessen com­ viewed from the standpoint of banks and banking petition, or to tend to create a monopoly, or which offices located in their respective service areas, the in any other manner would be in restraint of trade, Banks hold substantial shares of commercial de­ unless the Board finds that the anticompetitive posits, as follows: Almond Bank, 54 per cent; effects of the proposed transaction are clearly out­ Coloma Bank, 34 per cent; Westfield Bank, 39 per weighed in the public interest by the probable cent; and Adams Bank, 76 per cent. However, if effect of the transaction in meeting the convenience account is taken of all banks competing in the and needs of the community to be served. In each Banks’ service areas, the Banks’ percentages of case the Board is required to take into considera­ deposits are markedly reduced: Almond Bank has tion the financial and managerial resources and deposits equal to 4 per cent of total deposits held future prospects of the bank holding company and by all competing banks in its service area; Coloma the banks concerned, and the convenience and Bank, 9 per cent; Westfield Bank, 6 per cent; and needs of the community to be served. Adams Bank, 21 per cent. Taking the four-county Competitive effect of the proposed transaction. area in which the Banks are located, the Banks The 10 largest banking organizations in Wiscon­ as a group hold 21 per cent of the deposits of the sin, which include eight of the 11 Wisconsin-based 17 banks located there. bank holding companies, control $3.4 billion of In view of the long-standing affiliations of the total bank deposits in the State or almost 40 per Banks, and the resulting area deposits concentra­ cent of such deposits, and the three largest of these tion, consummation of the proposed acquisitions organizations, all holding companies, control about would result in no increase in concentration in the 30 per cent. Applicant, the third largest, controls relevant areas. 6.6 per cent. After acquisition of the Banks, Ap­ As to competition between and among the Banks, plicant would control an additional .3 per cent of their common ownership and management make it total bank deposits in the State. Thus, acquisition unlikely that there is any effective comeptition be­ of Bank would have little effect on Applicant’s tween them. Further, the expressed reluctance of share of control. the Banks’ largest stockholder to sell the Banks The Banks are located between 100 and 150 separately makes it unlikely that effective com­ miles of the Milwaukee area, where six of Appli­ petition would develop in the foreseeable future. cant’s present subsidiaries are located, and 75 miles The substantial distances between the Banks and from Applicant’s seventh subsidiary. Applicant’s Applicant’s present subsidiaries and State restric- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

LAW DEPARTMENT 761 tions on branch banking make it unlikely that fu­ Convenience and needs of the community in­ ture competition between the Banks and Applicant’s volved. The land in the Banks’ service areas, while present subsidiaries would develop. not of high quality, produces very high yields of The Board concludes that consummation of the certain staple vegetables if properly irrigated. Fi­ proposed transaction would not substantially lessen nancing required to accomplish a desirable type competition, tend to create a monopoly, nor in any and degree of irrigation is presently arranged other manner restrain trade in any relevant section through participations by the area banks with cor­ of the country. respondent banks, including Applicant’s lead Bank. Financial and managerial resources and future Applicant asserts that consummation of the pro­ prospects. The financial condition of Applicant and posed acquisition would facilitate such financings its present subsidiaries is generally satisfactory; and and thus contribute to the area’s growth. Appli­ management is considered competent. Future pros­ cant also proposes to make available to and through pects for the group appear favorable. the Banks additional services not now offered or The capital positions of Almond Bank and Co­ readily available. Considerations relating to the con­ loma Bank are in need of strengthening, a defi­ venience and needs of the community served by the ciency that Applicant has stated it will remedy by Banks provide weight in favor of approval of the supplying additional capital if the applications are applications. approved. In other respects the financial and man­ Summary and conclusion. On the basis of all agerial resources of the Banks, and their future the relevant facts contained in the record, and in prospects, are satisfactory. The Board concludes the light of the factors set forth in section 3(c) that considerations under the banking factors are of the Act, it is the Board’s judgment that the consistent with and lend some weight towards ap­ proposed transactions would be in the public inter­ proval. est and that the applications should be approved. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Announcements RECIPROCAL CURRENCY ARRANGEMENT $1.00 par common, is corrected to read The Girard Company, $1.00 par common; Philadelphia The Federal Reserve System announced on August Suburban Water Co., $3.75 par common, is changed 29, 1969, an increase in its reciprocal currency ar­ to Philadelphia Suburban Corp., $1.00 par com­ rangement with the National Bank of Belgium mon; and Provident National Bank (Penna.), from $300 million to $500 million, effective Sep­ $12.00 par capital, becomes Provident National tember 2, 1969. Corporation, $1.00 par capital. The $200 million increase in the swap arrange­ ment with the Belgian central bank brings the total EMERGENCY CREDIT PROCEDURES of the System’s swap network with 14 central banks The Federal Reserve System on August 26, 1969, and the Bank for International Settlements to activated emergency procedures to facilitate efforts $10,680 million. (Details are given in the article on foreign exchange operations beginning on page of banks in Hurricane Camille disaster areas to 697). accommodate the credit needs of their customers for reconstruction and rehabilitation purposes. Under arrangements established by the System’s CHANGES IN OTC MARGIN STOCKS Board of Governors in Washington, the Federal The Board of Governors on September 4, 1969, Reserve Banks of Atlanta and Richmond, whose announced several changes in its “List of OTC districts encompass the disaster areas, are author­ Margin Stocks” first published on July 8, 1969. ized: Two stocks—Friendly Ice Cream Corporation, 1. To relax penalties on member banks for fail­ $1.00 par common, and Tassette, Inc., Class A ure to maintain the reserve balances they are re­ common—are added to the list. The 80 per cent quired to keep with the Reserve Banks. margin requirements on the newly added stocks will 2. To make appropriate credit available to dis­ apply only to loans made on and after September aster-area banks to help them meet the unusual 4, 1969. and exigent circumstances in their areas, under DPA, Inc., $1.00 par common, Lincoln National various provisions of the Federal Reserve Act and Corporation, $2.50 par common, and University regulations of the Board applicable to emergency Computing Company, no par common, are deleted conditions. and are now listed on a national securities ex­ change. ADMISSION OF STATE BANKS TO MEMBERSHIP IN THE FEDERAL RESERVE SYSTEM The following changes have also been made: Continental Computer Associates, Inc., no par The following banks were admitted to membership common, becomes Banister Continental Corpora­ in the Federal Reserve System during the period tion, no par common; Crocker-Citizens National July 16, 1969, through August 15, 1969: Bank, capital, has been changed to Crocker-Na­ Florida tional Corporation, capital; Dayton Corporation, Sarasota ..................... Siesta Key Palmer Bank $1.00 par common, becomes Dayton-Hudson Cor­ Illinois poration, $1.00 par common; Girard Company, Chicago............Main State Bank of Chicago 762 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication September 16 Industrial production edged off in August. Retail nearly two-thirds of the rise was concentrated in sales and nonfarm employment rose somewhat and the auto industry the data for which probably re­ the unemployment rate changed little. Commercial flected seasonal adjustment problems because of an bank credit, the money supply, and time and sav­ early model-changeover. In other manufacturing ings deposits declined. Between mid-July and mid­ industries, employment rose moderately in primary August, yields on U.S. Government securities and metals and electrical equipment, but in nondurable on corporate and municipal bonds increased. goods manufacturing changed little. Employment in trade, State and local government, and services in­ INDUSTRIAL PRODUCTION creased, and further reductions were recorded in Industrial production in August was 174.3 per construction and Federal employment. The aver­ cent of the 1957-59 average, off 0.2 per cent from age manufacturing workweek declined one-tenth of the July level of 174.6 which was revised down 0.3 an hour to 40.6 hours. The unemployment rate, at per cent. Output of final products changed little in 3.5 per cent in August, was essentially unchanged August but production of materials declined. from the 3.6 per cent rate of July and was a little Auto assemblies, after allowance for the model higher than last winter’s low of 3.3 per cent. changeover period, were maintained at the July DISTRIBUTION level. Output of furniture and some other home goods declined, and production of television sets The value of retail sales in August continued to was about unchanged. Output of consumer staples show relatively little change, rising 0.5 per cent advanced further. Production of industrial equip­ from the downward revised July level, and was ment declined but output in other equipment about 2 per cent above a year earlier. Sales at both industries rose. Declines in output of iron and steel, durable and nondurable goods stores rose. Unit construction materials, and nondurable materials sales of new domestic autos were at an annual rate were only partially offset by increases in consumer of 8.2 million, about the same as in July but 9 per durable parts and equipment parts. cent below a year ago. COMMODITY PRICES EMPLOYMENT The wholesale price index rose 0.1 per cent from After declining slightly in July, nonfarm payroll mid-July to mid-August as decreases in prices of employment rose by 165,000 in August. However, farm products and foods only partly offset a 0.4 INDUSTRIAL PRODUCTION per cent rise in average industrial commodity prices. Prices of metals, apparel, chemicals, crude rubber, and tires rose. Since mid-August, price in­ creases for some additional metals and metal prod­ ucts, chemicals, and home appliances have been announced. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit declined $300 million in August following little change over the June-July period and an average monthly expansion of more than $1 billion earlier in the year. Banks liquidated a substantial volume of municipal and Federal agency issues for the second month in a row, while bank holdings of U.S. Government securities were unchanged despite heavy bank participation in the F.R. indexes, seasonally adjusted. Latest figures: August. 763 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

late-month Treasury bill financing. Business loans million over the 4 weeks ending August 27, com­ were relatively stronger than in other recent months pared with $1,045 million in July. Member bank but other major loan categories continued generally borrowings were reduced further, but excess re­ weak. serves also declined somewhat. Total and required The money supply declined $800 million in reserves continued to decline. August following a $1 billion increase in July and a $600 million monthly average rise earlier in the SECURITY MARKETS year. U.S. Government deposits increased some­ Yields in all sectors of the U.S. Government what following substantial declines in the two pre­ securities market rose further on balance between vious months. Time and savings deposits at all mid-August and mid-September. The 3-month commercial banks declined $2.5 billion in August, Treasury bill was bid at around 7.10 per cent in less than in July but at a much more rapid rate the middle of September. than over the January-June period. The reduction From mid-August to mid-September, yields on reflected continued heavy attrition of large negoti­ new and seasoned corporate bonds rose substan­ able CD's and further substantial outflows of con­ tially, and municipal bond yields climbed even sumer-type time and savings deposits. more dramatically. Stock prices changed little, on Net borrowed reserves averaged about $1,005 balance, in a moderately active market. 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 Consumer, July; Wholesale, August. or more and for 90-day Treasury bills. Latest figures: week ending Sept. 12. 764 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 31 Business loans of banks A 32 Bank rates A 33 Other interest rates A 35 Security markets A 36 Stock market credit A 37 Open market paper A 37 Savings institutions A 39 Federally sponsored credit agencies A 40 Federal finance A 42 U.S. Government securities A 45 Security issues A 48 Business finance A 50 Real estate credit A 54 Consumer credit A 58 Industrial production A 62 Business activity continued on next page A 1 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 U.S. STATISTICS—Continued A 62 Construction A 64 Labor force, employment, and earnings A 66 Consumer prices A 66 Wholesale prices A 68 National product and income A 70 Flow of funds INTERNATIONAL STATISTICS: A 72 U.S. balance of payments A 73 Foreign trade A 74 U.S. gold transactions A 75 U.S. gold stock; position in the IMF A 76 International capital transactions of the United States A 89 Foreign exchange rates A 90 Money rates in foreign countries A 91 Arbitrage on Treasury bills A 92 Gold reserves of central banks and governments A 93 Gold production TABLES PUBLISHED PERIODICALLY: A 94 Stock market credit A 103 INDEX TO STATISTICAL TABLES Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation p Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area rp Revised preliminary A Assets I, H, L Liabilities III, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par­ 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: Banking offices: Assets and liabilities: Analysis of changes in number of.. . Aug. 1969 A A - 9 9 4 4 1 1 9 9 6 6 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . M Fe a b y . 1 1 9 9 6 6 8 8 A A - - 6 6 5 7 . . 1 1 0 0 On, and not on, Federal Reserve Par List, number............................ Aug. 1969 A-95 Annually Income and expenses: Federal Reserve Banks.................. Feb. 1969 A-92 Bank holding companies: Member banks: List of, Dec. 31, 1968................... June 1969 A-91 Calendar year.......... May 1969 A-95 Banking offices and deposits of Operating ratios............................. May 1969 A-104 group banks, Dec. 31, 1968.... Aug. 1969 A-96 Insured commercial banks................. May 1969 A-107 Banking and monetary statistics, 1968. . Mar. 1969 A-92—A-102 Stock exchange firms, detailed debit May 1969 A-91—A-94 and credit balances......................... Sept. 1969 A-94 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ SEPTEMBER 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 22^59 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 I960—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 12336 6;777 1968—Aug............................................... 52,646 52,463 183 568 1,760 55,048 10,367 6,733 52,222 52,208 14 515 1,981 54,769 10^67 6;?37 53^300 53^52 48 427 1,976 55,770 10,367 6,757 53,388 53'322 66 569 2,160 56,183 IO!367 6,790 52,529 52,454 75 765 3,251 56;610 10,367 6,810 1969—Jan................................................. 52,665 52,622 43 697 3,054 56,476 10,367 6,802 Feb................................................ 52;265 52^74 191 824 2,602 55,786 10,367 6^06 52,122 51'987 135 918 2,367 55,477 1O;367 6,815 Apr.................................................. 52,463 52,257 206 996 2,429 2,837 58,821 10,367 6,750 May....................................... 53,390 52,898 492 1,402 2,218 2,876 59,999 10,367 6,737 June................................................ 54,028 53,926 102 1,407 2,463 2,614 60,565 10,367 6,746 July............................................ 54,298 54,252 46 1,190 2,684 2,670 60,887 10,367 6,737 Aug.p...................................... 54,599 54,334 265 1,250 2,280 2,672 60,855 10,367 6,739 Week ending— 1969—June 4........................................... 53,864 53,636 228 1,521 2,268 2,508 60,227 10,367 6,742 11........................................... 54,100 53,920 180 1,260 2,388 2,560 60,364 10,367 6,744 18........................................... 54,038 54,038 1,315 2,511 2,617 60,526 10,367 6.745 25........................................... 53,864 53,864 1,323 2,682 2,675 60,587 10,367 6,751 July 2........................................... 54,214 54,044 170 1,634 2,419 2,672 61,001 10,367 6,745 ' 9........................................... 54,586 54,443 143 1,020 2,802 2,677 61,141 10,367 6,740 16........................................... 54,601 54,565 36 1,279 2,680 2,698 61,302 10,367 6,737 23........................................... 54,189 54,161 28 1,354 3,145 2,634 61,365 10,367 6,735 30......................................... 53,897 53,897 1,269 2,224 2,690 60,121 10,367 6,737 54,617 54,138 479 1,090 2,228 2,605 60,602 10,367 6,739 13”......................................... 54,531 54,067 464 1,328 2,232 2,640 60,793 10,367 6,738 20p.................................... 54,459 54,422 37 1,221 2,625 2,682 61,032 10,367 6,734 27p...................................... 54,559 54383 76 1,201 2,158 2,715 60,680 10,367 6,738 End of month 1969—June................................................ 54,095 54,095 1,049 1,472 2,608 59,265 10,367 6,736 July. .................................... 54,138 54,138 750 2,561 2,600 60,089 10,367 6,748 54,950 54,68! 269 1,514 2,098 2,735 61,359 10,367 6,751 Wednesday 53,833 53,833 928 2,354 2,477 59,636 10,367 6,743 11......................................... 53,798 653,798 501 2,167 2,592 59,104 10,367 6,744 18. . .............................. 52,963 652,963 769 2,471 2,670 58,917 10,367 6,747 25.........5................................ 53,206 653,206 1,347 2,316 2,706 59,618 10,367 6,750 July 2........................................... 54,095 54,095 561 2,408 2,656 59,763 10,367 6,740 9....................................... 53,715 653,715 659 2,636 2,716 59,767 10,367 6,739 16........................................... 54'821 54,565 256 2,087 2,674 2,609 62,252 10,367 6,734 23........................................... 53,669 653,669 1,016 2,348 2,671 59,745 10,367 6,735 30........................................... 52,983 652’983 985 2'186 2,710 58,905 10,367 6,736 Aug. 6p.......................................... 54,881 54,138 743 1,152 2,273 2,616 61,009 10,367 6,738 13”.......................................... 53^47 653,834 113 370 2,169 2,674 59,201 10,367 6,737 20p........................................ 54 397 654,397 1,125 2,288 2,831 60,682 10,367 6,734 27p.......................................... 54,927 54,681 246 1,463 2,005 2,716 61,171 10,367 6,755 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 r C e i n u n c r y ­ Tr u e r a y s ­ with F.R. Banks O F t . h R e . r O F l t i . a h R e ­ . r Period or date c t c i u o i l r a n ­ ­ h c in o a g s ld s h ­ Treas­ For­ Other2 cou ac n ­ ts3 c b a i a l p i n t i i t d e a s l 3 W F. i R th . r C en u c r y ­ ury eign Banks and Total coin5 Averages of daily figures 4,400 210 30 0 376 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 1 292 12,812 12,812 .........................1941—Dec. 28,452 2,269 625 1,247 493 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. 48,194 811 963 170 459 -102 21,653 4,416 26,069 .......................... 1968—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 23,371 4,532 27,903 ......................................May 50,693 672 970 107 458 2,010 22,768 4,549 27,317 ......................................June 51 ,256 657 1,117 142 473 2,038 22,309 4,671 26,980 .......................................July 51,326 673 881 141 469 2,062 22,409 4,627 27,036 ......................................Aug.p Week ending— 50,441 689 500 105 447 ......... 2,052 23,102 4,541 27,643 .....................1969—June 4 50,666 679 734 102 448 2,123 22,724 4,720 27,444 ............... 11 50,777 671 1 ,097 102 453 1 ,914 22,624 4,412 27,036 ..........................................18 50,686 664 1 ,289 109 468 ........... • • • 1 ,958 22,530 4,436 26,966 ..........................................25 50,913 655 1 ,068 128 491 2,022 22,837 4,663 27,500 ..................................July 2 51,383 646 1 ,052 176 495 2,112 22,384 4,792 27,176 ......................................... 9 51,462 642 1,118 128 467 2,048 22,540 4,735 27,275 ..........................................16 51,208 661 1,184 137 457 1 ,963 22,857 4,307 27,164 ..........................................23 51,006 676 1,177 123 453 ................. 2,019 21,770 4,824 26,594 ..........................................30 51,120 663 867 153 476 2,118 22,313 4,729 27,042 ..................................Aug. 6 51,433 659 I ,024 143 464 2,102 22,074 4,772 26,846 ..........................................13* 51,375 674 746 135 483 1 ,972 22,748 4,399 27,147 ..........................................20” 51,294 682 895 139 464 ................. 2,033 22,279 4,606 26,885 ..........................................27* End of month 50,936 633 1,258 155 549 ................. 2,029 20,808 4,662 25,470 ..........................1969—June 51,120 631 935 158 464 2,088 21,809 4,729 26,538 .......................................July 51,408 684 894 143 443 2,117 22,789 4,652 27,441 ......................................Aug.* Wednesday 50,607 687 297 HO 432 ................. 2,078 22,535 4,543 27,078 .....................1969—June 4 50,845 678 899 91 435 2,127 21,140 4,722 25,862 ..........................................11 50,809 671 1 ,352 106 441 1 ,927 20,724 4,415 25,139 ..........................................18 50,787 675 1 ,547 106 458 ................. 1,967 21,195 4,440 25,635 ..........................................25 51,294 656 995 150 517 2,046 21,212 4,662 25,874 ..................................July 2 51,592 638 1,104 139 487 2,106 20,807 4,801 25,608 ................................... 9 51,444 656 1 ,088 116 462 1,939 23,648 4,748 28,396 ..........................................16 51,199 672 1,092 138 451 1,977 21,318 4,310 25,628 ..........................................23 51,118 683 1,227 121 465 2,028 20,366 4,824 25,190 ..........................................30 51 ,403 654 585 153 468 ................. 2,148 22,703 4,729 27,432 ..................................Aug. 6* 51 ,510 672 1,100 141 486 1,922 20,474 4,772 25,246 ..........................................13* 51,436 684 956 116 484 1,988 22,119 4,399 26,518 ..........................................20» 51,449 693 953 138 482 ................. 2,059 22,519 4,606 27,125 ..........................................27* 1 U.S. Govt, securities include Federal agency obligations. ances on Wed. and end-of-month dates, see subsequent tables on F.R. 3 Beginning with 1960 reflects a minor change in concept; see Feb. Banks. See also note 2. 1961 Bulletin, p. 164. 5 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 Ioan 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 □ SEPTEMBER 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 q u R ir e e ­ d 1 Excess B r E i a o n a R n g w t k s . ­ s s F er r r v e e e e ­ s T h o e t ld al qui R re e d ­ 1 Excess 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 d1 Excess B r i F a n o a n . g w R t k s ­ s . s F e r r r e v e ­ e e s 1929—June........... 2,314 2,275 42 974 -932 762 755 7 174 -167 161 161 1 63 -62 2 2J60 1^797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1' 143 848 295 295 1945—Dec............. 16,027 14,536 I ,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 I960—Dec............. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1962—Dec............. 20,040 19^468 572 304 268 3,863 3,817 46 108 -62 1,042 t,O35 7 18 -11 1963—Dec........... 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 26 -21 1964—Dec............. 21,609 21 J98 411 243 168 4,083 4,062 21 35 -14 1 ,083 1,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1966—Dec............. 23’830 23^438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Dec............. 25,260 24’915 345 238 107 5,052 5,034 18 40 -22 1 ,225 1,217 8 13 -5 1968—Aug............. 26,069 25,694 375 565 -190 4,940 4,912 28 192 -164 1,165 1,161 4 2 2 Sept............ 26,077 25,694 383 515 -132 4,886 4,868 18 154 -136 1,147 1,143 4 23 -19 26,653 26,393 260 427 -167 5,096 5,071 25 65 -40 1 ,182 1 ,177 5 9 -4 26^85 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 5,057 100 230 -130 1,199 1,184 15 85 -70 1969—Jan.............. 28,063 27,846 217 697 -480 5,397 5,392 5 65 -60 1 ,286 1 ,287 -1 48 49 Feb............. 27,291 27,063 228 824 -596 5,190 5,194 -4 63 -67 1 ,259 1 ,253 6 39 -33 26,754 26,537 217 918 -701 5,040 5,019 21 65 -44 1,204 I ,207 -3 98 -101 27,079 26,927 152 996 -844 5,039 5,045 -6 HI -117 1 ,202 1,202 116 -116 27,903 27,603 300 1 ,402 -1,102 5 J 74 5 J34 40 129 -89 1 '277 1 ;28i -4 144 -148 27,317 26,974 343 1 ,407 — 1 ,064 4,962 4,894 68 96 -28 1 ,241 1 ,206 35 27 8 July........... 26,980 26,864 116 1,190 -1 ,074 4,837 4,817 20 86 -66 1,197 1 ,207 -10 5 -15 27,036 26,'776 260 I ,250 -990 4,963 4,921 42 94 -52 1 ,185 1 ,195 -10 39 -49 Week ending— 1968—Aug. 7 . ... 26,227 25,885 342 737 -395 5,113 5,093 20 337 -317 1 ,187 1 ,182 5 5 14... . 25,890 25,576 314 576 -262 4,866 4,834 32 191 -159 1,153 1,147 6 6 21 . 26,227 25,713 514 619 -105 4,906 4,898 8 278 -270 1 J67 1,162 5 5 28. . . . 25,791 25,612 179 374 -195 4,893 4,854 39 39 1'147 1,148 -1 10 — 11 1969—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 Apr. 2. . .. 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 J 67 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 . 27,772 27,656 1 16 1 ,358 -1,242 5,189 5,240 -51 188 -239 1 ,293 1 ,298 -5 172 -177 28. . . . 27,729 27,616 113 1,303 -1,190 5 120 5 127 -7 61 -68 1 303 1 ,303 12 — 12 June 4. . . , 27,643 27,274 369 1 ,521 -1,152 5,083 4,996 87 43 44 1 ,239 1 ,235 4 197 -193 11 ... . 27,444 26,996 448 1,260 -812 5,085 4,965 120 90 30 1 ,254 1 ,214 40 3 37 18.... 27,036 26,937 99 1 ,315 -1 ,216 4,904 4,924 -20 40 -60 1,199 1 ,216 -17 -17 25.... 26,966 26,775 191 1 ,323 -1,132 4*774 4^761 13 134 -121 1,199 1 ,173 26 26 July 2 . ... 27,500 27,004 496 1,634 -1,138 5,013 4,857 156 138 18 1 ,220 1 ,202 18 8 10 9. . .. 27,176 27,063 113 1 ,020 -907 4,816 4,870 -54 -54 1 ,209 1 ,222 -13 5 -18 16... . 27,275 27,099 176 1,279 -1 ,t03 5,027 4,'971 56 137 -81 1,261 1 ,265 -4 15 -19 23 ... . 27,164 26,782 382 1,354 -972 4,909 4,822 87 89 -2 1 ,200 1,190 10 10 30.... 26,594 26,448 146 1 ,269 -1,123 4; 630 4; 593 37 154 -117 1 ,143 1,152 -9 4 -13 Aug. 6. . . . 27,042 26,791 251 1 ,090 -839 4 844 4,829 15 18 -3 1 ,214 1,199 15 15 13*... 26,846 26,623 223 I ,328 -l ,105 4,845 4,784 61 135 -74 1 ’,205 1 ,210 -5 139 -144 20*. . . 27,147 27,109 38 1,221 -1,183 5 101 5 164 -63 136 -199 1 224 1 ,216 8 8 27*... 26,885 26,710 175 1,201 -1,026 4,947 4,896 51 64 -13 1 ,144 1 J64 -20 6 -26 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Reserves Reserves Borrow­ Borrow­ Period 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 1 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. <317 3’014 1 303 1 ,302 2^210 1,406 804 4 800 ..........................1941 —Dec. 6,394 5^976 418 96 322 4,576 3,566 1 ,011 46 965 ...........................1945—Dec. 6’689 6,458 232 50 182 4,761 4,'099 663 29 634 ..........................1950—Dec 7,950 7,851 too 20 80 6,689 6,066 623 40 583 ..........................1960—Dec 8 J78 8'100 78 130 -52 6,956 6,515 442 48 394 ............... 1962-—Dec 8'393 8’325 68 190 -122 7,347 6,939 408 74 334 ...................... 1963—Dec. 8'735 8'713 22 125 -103 7,707 7,337 370 55 315 ..........................1964——Dec. 9,056 8,989 67 228 -161 8,219 7,'889 330 92 238 ..................... 1965—Dec, 9,509 9’449 61 220 -159 8,619 8’318 301 161 140 10’081 10'031 50 105 -55 8,901 8,634 267 80 187 ..........................1967—Dec. 10,568 10,501 67 161 -94 9,396 9,120 276 210 66 ............... 1968—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 11 '275 11/195 80 618 -538 10’177 9,993 184 51 1 -327 ......................................May 10,986 10’922 64 713 -649 10'128 9^952 176 571 -395 ..................................... June 10’,752 10’846 — 94 517 -611 10’194 9'994 200 582 — 382 . .....................................July 10J77 10,727 50 480 -430 10,109 9,932 177 637 -460 ......................................Aug.p Week ending— 10,538 10,515 23 170 -147 9,390 9,095 295 230 65 ....................1968—Aug. 7 10,534 10,457 77 149 -72 9’336 9'139 197 236 -39 .....................................\ 14 10,578 10,536 42 152 -110 9’576 9,117 459 189 270 ..........................................21 10,530 10^489 41 158 -117 9,221 9,121 100 206 -106 ..........................................28 10,870 10,844 26 255 -229 9,809 9,590 219 334 -115 ...................................Mar. 5 10,762 10’763 -1 489 -490 9,705 9,518 187 268 -81 ..........................................12 10,824 10,824 371 -371 9,676 9,503 173 277 - 104 ..........................................19 10,740 10'715 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 It ,109 11'091 1 8 663 -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 1 43 582 -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 11,169 11’186 -17 543 -560 10,121 9,'932 189 455 -266 ..........................................21 1 1,166 11 ,' 1 74 -8 623 -631 10’140 10,012 128 607 -479 ..........................................28 11,157 11,080 77 644 -567 10,164 9,963 201 637 -436 .................. June 4 11 ,022 10^927 75 666 -591 10,103 9,890 213 501 -288 ..........................................11 10,865 10,903 -38 706 -744 10’068 9'894 174 569 -395 ..........................................18 10,869 10,849 20 697 -677 10’124 9,992 132 492 -360 ..........................................25 11,012 10,907 105 791 -686 10,255 10,038 217 697 -480 ................................July 2 10,921 10^966 -45 494 -539 10^230 10'005 225 521 -296 ......................................... 9 10^877 10,946 -69 628 -697 10 J 10 9’917 193 499 -306 ..........................................16 10,913 10,786 127 604 -477 10’142 9,984 158 661 -503 ..........................................23 10,600 10^674 -74 448 -522 10'221 10,029 192 663 -471 ..........................................30 10,834 10,788 46 434 -388 10,150 9,975 175 638 -463 .................................Aug. 6 10,629 10,'704 -75 466 -541 10'167 9,925 242 589 -347 .....................................”, 13" 10,768 10^819 -50 453 -503 10'053 9’910 143 624 -481 ............ 20” 10,693 10^692 1 502 -501 IO;102 9'958 144 629 -485 ..........................................27" 1 Beginning Sept. 12, 1968, amount is based on close-of-business fig­ weeks ending on Wed. that fall within the month. Beginning with Jan. ures for reserve period 2 weeks previous to report date. 1964, reserves are estimated except for weekly averages. 2 This total excludes, and that in the preceding table includes, S51 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 □ SEPTEMBER 1969 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, unless otherwise noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers Less— Net— Gross transactions Net transactions Reporting banks and Bor­ week ending— s E e x r r c v e e e ­ s s s 1 r a o B t B w a F o n in . r k R g ­ s s . F f t i b e r u n N a a d n t n e e n e d s t r r k s ­ a . l S d u e r o f p i r c l u it s r P r e e e q s a r e o v u c r g i f v r e . e e n d s t ch P a u s r e ­ s Sales a 2 t c T r - t a o i w o n t a n a s y s l ­ 2 b c o b h u P a f a y u n n s i k n r e e ­ s g s t s o b S e a f a l n l l n i e n k e s g s t d L e o a t a l o e n r s s 3 de f r i r a o n o l g w e m s r ­ s 4 lo N a e n t s Total—46 banks 1969—July 2............. 301 541 1 ,835 -2,076 18.1 5,072 3,237 2,281 2,791 955 869 272 598 9...........66 165 2,819 -2,919 25.3 6,030 3,210 2,480 3,549 729 856 242 613 16........... 17 390 2,787 -3,160 27.0 6,107 3,320 2,500 3,607 820 578 292 285 23........... 182 299 2,071 -2,189 19.2 5,430 3,359 2,561 2,869 799 918 295 623 30........... 79 298 1 ,418 -1 ,637 14.8 5,252 3,835 2,791 2,461 1 ,044 1 ,034 321 714 Aug. 6........... 71 201 1 ,902 -2,031 17.8 5,621 3,719 2,865 2,756 854 808 313 495 13........... 150 483 2,636 -2,969 26.1 5,678 3,042 2,426 3,252 616 689 353 357 20........... 23 403 2,078 -2,457 20.8 5,592 3,514 2,604 2,988 910 653 343 309 27........... 23 249 1 ,553 -1 ,779 15.6 5,147 3,594 2,389 2,758 1 ,205 606 351 255 8 in New York City 1969—July 2............. 176 125 207 -157 3.6 1 ,541 1 ,334 1 ,031 511 304 772 145 626 9...........26 678 -652 14.8 1 ,91 1 1 ,233 1 ,052 859 181 702 134 568 16 52 88 558 -593 13.2 1 ,838 1 ,280 1 ,067 770 213 498 156 341 23........... 105 86 190 -171 3.9 1 ,693 1 ,503 1 ,106 587 397 816 154 662 30........... 76 146 -33 -38 .9 1 ,558 1 ,591 1,139 420 453 832 150 683 Aug. 6........... 50 18 -11 44 1 .0 1 ,766 1 ,777 1 ,458 308 319 745 127 617 13........... 94 118 446 -470 10.8 1 ,750 1,304 1 ,182 568 122 558 172 386 20........... -11 136 -152 5 . 1 1 ,571 1 ,723 1 ,277 294 446 505 170 335 27............ 27 53 -292 266 6.0 1 ,397 1 ,688 1 ,073 324 615 522 164 358 35 outside New York City 1969—July 2............ 125 416 1 ,628 -1,919 27. 1 3,531 1 ,902 1 ,251 2,280 651 98 127 4-29 9...........40 165 2,142 -2,267 31.7 4,119 1 ,977 1 ,429 2,690 548 154 108 46 16 -35 302 2,230 -2,567 35.6 4,270 2,040 1 ,433 2,837 607 80 136 + 56 23......... 76 214 1 ,881 -2,018 28.7 3,737 1 ,856 1 ,455 2,282 402 102 141 + 39 30........... 3 152 1 ,451 -1 ,599 23.2 3,694 2,244 1 ,653 2,042 591 202 171 31 Aug. 6........... 20 183 1 ,913 -2,075 29.5 3,854 1 ,942 1 ,406 2,448 535 63 186 + 123 13........... 56 365 2,190 -2,499 35.6 3,928 1,738 1,243 2,685 495 131 180 +49 20........... 35 267 2,230 -2,462 34.6 4,021 1 ,791 1 ,327 2,694 464 147 173 +26 27........... -5 196 1 ,845 -2,045 29.4 3,750 1 ,906 1 ,316 2,434 589 83 187 104 S in City of Chicago 1969—July 2............. 35 4 580 -549 50.5 892 312 300 592 12 19 19 9........... 6 630 -624 56.5 1 ,033 403 402 632 2 30 30 16 -4 15 615 -634 55.0 1 ,044 429 409 635 20 21 21 23....... 9 492 -483 44.8 878 386 379 499 7 24 24 30........... -5 4 210 -220 21.1 827 617 547 280 69 21 21 Aug. 6........... 9 657 -648 59.5 967 310 310 657 22 22 13........... 9 134 775 -900 81.8 1 ,022 247 247 775 21 21 20........... 15 608 -593 53.5 967 359 353 614 7 39 39 27........... — 6 604 -610 57.7 928 324 324 604 31 31 33 others 1969—July 2............ 90 412 1 ,048 -1 ,370 22.9 2,638 1 ,590 951 1 ,688 640 79 127 -48 9...........35 165 1 ,512 -1,642 27.2 3,086 1,574 1 ,027 2,058 546 124 108 16 16........... -32 287 1 ,615 -1 ,933 31.9 3,225 1 ,611 1 ,024 2,202 587 60 136 +77 23........... 68 214 1 ,389 -1,535 25.7 2,859 1,470 1 ,076 1 ,784 395 78 141 +63 30. ..... . 9 148 1 ,241 -1,380 23.6 2,867 1 ,627 1,105 1 ,762 522 181 171 10 Aug. 6........... 11 183 1 ,256 -1,427 24.0 2,888 1 ,632 1 ,096 1 ,79! 535 41 186 + 145 13........... 47 231 1 ,415 -1,599 27.0 2,906 1 ,491 996 1 ,910 495 110 180 +70 20........... 20 267 1 .622 -1,869 31 .2 3,054 1 ,432 975 2,079 457 109 173 +64 27........... 2 196 1 ,240 -1 ,435 24.3 2,822 1 ,582 992 1 ,830 589 52 187 135 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealer the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ DISCOUNT RATES A 9 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 133 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 A R u a 1 g 9 te . 6 9 o 31 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 6 9 3 o 1 n , Eff d e a c te tive Pre ra v t i e ous A R u a 1 g t 9 e . 6 9 3 o 1 n , Eff d e a c t t e ive Pre ra v t io e us Boston. ..................................... 6 Apr. 8, 1969 5’4 6*4 Apr. 8, 1969 6 7 Apr. 8, 1969 6*4 New York..................................... 6 Apr. 4, 1969 5*4 6*4 Apr. 4, 1969 6 7’4 Apr. 4', 1969 7 Philadelphia................................... 6 Apr 4, 1969 5*4 6*4 Apr. 4, 1969 6 7 Apr. 4’ 1969 6’4 Cleveland....................................... 6 Apr. 4, 1969 5*4 6*4 Apr. 4, 1969 6 7’4 Apr. 4, 1969 7' Richmond.................................... 6 Apr 4 1969 516 6’4 Apr. 4^ 1969 6 7 ' Apr. 4, 1969 6*4 Atlanta........................................... 6 Apr. 4, 1969 5’4 6*4 Apr. 4^ 1969 6 1 Apr. 4’ 1969 6*4 Chicago.......................................... 6 Apr. 4 1969 5*4 6’4 Apr. 4’ 1969 6 7 Apr. 4, 1969 6*4 St. Louis......................................... 6 Apr. 4, 1969 5’4 6*4 Apr. 4’ 1969 6 7 Apr. 4, 1969 6*4 Minneapolis................................. 6 Apr. 4^ 1969 5’4 6*4 Apr. 4, 1969 6 7*4 Apr. 4, 1969 6*4 Kansas City.................................... 6 Apr. 4, 1969 5*71 6*4 Apr. 4, 1969 6 7 Apr. 4, 1969 6*4 Dallas. ............................................ 6 Apr. 4, 1969 5*4 6’4 Apr. 4, 1969 6 7 Apr. 4, 1969 6*4 San Francisco................................ 6 Apr. 4, 1969 534 6'4 Apr. 4, 1969 6 7 Apr. 4; 1969 614 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 F.R. Range F.R. Effective (or level)— Bank Effective (or level)— Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941........ 1 -134 1 1955—Cont. 1960 2 -2'4 4 11 4 1942 ' 13............................ 2'4 10............................ in 1 Nov. 18............................ 2'4-234 14............................ 334 Oct. 15................................ t H-1 1 23............................ 234 Aug. 12............................ 3 -3!4 3 30................................ i ‘A t*4 3 3 1956 1946 234-3 2’/ 4 1963 t ’A-t t ' 20............................ 234-3 2^/ 4 July 17............................ 3 -3!4 ^ 1 1 2’4-3 3 26............................ 334 ~ 31............................ 3 3 1948 1964 19 Jan. . 12.......................1. .. 1 ..- 3 .1. 4 ..'4 1^ 1957 3 -334 3 Nov, 2 3 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . 3*4 4 -4 4 4 “ 23....... 1 .. 9 . 5 .. 0 .. .................. 1 '/ U 4- 4 I 'A ::^ D N e o c v . . 2 1 2 3 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 -3 4 34 3 3 3 V 13.... 1 .. 9 . 6 .. 5 ................... 4 4 - '4 434 ^ Aug. 21 ..... ..................1..'.4..-1 34 i^ 1958 1967 “ 2 2 3 5 . . . . . . . . . . . . . . 1 . . . 9 . . . 5 . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l’/4 2 13 -2 4 2 2 Mar. 2 2 1 7 4 1 3 . . . . J . . . . . . . a . . . . . . . n . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 2 2 2 2 .. 3 3 3 . > . 2 4 4 4 . 4 .- - - ' . - 4 3 3 3 . 2 ’4 2 2 3 V V 1 4 4 Nov. 2 2 1 0 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4 3 - - 4 4 4 1 34 4 ^ 4 4 Apr, 18............................ 1’4-234 1968 1954 May 9............................ 1’4 Mar 15 4*4-s 414 Feb. 5.......................1..3..4..-.2.. I’/ Aug 15.................... 134-2 22 5 5 15................................ l’/4 sr Sept. 12............................ 1’4-2 2 5 -534 Apr. 14................................ 134-134 ' 23............................ 2 2 26 534 ' 16................................ 114-134 Oct. 24............................ 2 -2!4 2 5*/4-534 534 May 21................................ 1'4 Nov. 7............................ 234 2VI 30 5 34 5'/. Dec, 18.......................... 54-534 534 1955 1959 20............................ 534 534 134-134 i'/ Mar. 6....................2...'.4..-.3. 3 15................................ 114-134 16............................ 3 3 ’ 1969 May 2..................... 1% May 29........................... 3 -334 3V 5*4-6 6 1’4-234 June 12......................... 334 3V ' 8............................ 6 6 ~ 5................................ 134-2'4 334-4 4 12................................ 2 -2'4 2 ' 18............................ 4 4 In effect Aug. 31, 1969... 6 6 t Preferential rate of Vz of 1 per cent for advances secured by U.S. in the following periods (rates in percentages): 1955—May 4-6, 1.65; Govt, obligations maturing in t 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, 3.85; Dec. 15, 17, 22, 24, above). For data before 1942, see Banking and Monetary Statistics, 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968 Apr. 4,5, 11, 15,16,5.125; 1943, pp. 439-42. Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, H-13, 19,21, 24, 5.75; The rate charged by the F.R. Bank of N.Y. on repurchase contracts July 5, 16, 5.625; Aug. 16, 19, 5.25. against U.S. Govt, obligations was the same as its discount rate except Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ SEPTEMBER 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 4-5 deposits 2 deposits 2.4 (all classes of banks) Time depos­ its Reserve Country Other Effective date I C re e s n e t r r v a e l s R er e v ­ e Co tr u y n ­ cla ( o s a s l f l e s Effective date 1 city banks banks de S in p a g o v s ­ s ­ time deposits ba c n i k ty s 3 b c a i n ty ks banks banks) $ U 5 n m de il r ­ $ O 5 v m er il ­ $ U 5 n m de il r ­ $ O 5 v m er il­ its $ U 5 n m de il r ­ $5 O v m er il ­ lion lion lion lion lion lion In effect Dec. 31, 1949........ 22 18 12 5 1966—July 14,21....... 6 6% 6 12 M 64 5 Sept. 8, 15....... 6 1951—Jan. 11, 16............... 23 19 13 6 Jan. 25; Feb. 1.... 24 20 14 1967—Mar. 2............. 3*4 3’4 1953—ju]y 9i ......... 22 19 13 Mar. 16............. 3 3 1954—June 24, 16............... 21 5 July 29,’ Aug. 1.... 20 18 12 1968—Jan, 11,18....... 1614 17 12 1214 1958—Feb. 27. Mar. 1.... 19^ HV4 Mar. 20, Apr. 1.... 19 11 1969—Apr. 17............. 17 17% 12% 13 Apr. 17.......... 18V4 Apr. 24..................... 18 16% In effect Aug. 31,1969.. 17 17% 12% 13 3 3 6 1060. 1 17>4 Nov. 24..................... 12 Present legal Dec 1 . ................ 16W requirement: 1962—July 28................... Minimum................. 10 7 3 3 3 4 Maximum................. 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central requirement on borrowings by domestic offices of a member bank from reserve or reserve city banks and the second to the change at country foreign banks, except that only a 3 per cent reserve is required against banks. For changes prior to 1950 see Board’s Annual Reports. such borrowings that do not exceed a specified base amount. For details 2 Demand deposits subject to reserve requirements are gross demand concerning these requirements, see the amendments to Regulations D deposits minus cash items in process of collection and demand balances and M on pp. 656 and 657 of the Aug. 1969 Bulletin and p. 736 of this due from domestic banks. issue. 3 Authority of the Board of Governors to classify or reclassify cities 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation as central reserve cities was terminated effective July 28, 1962. club accounts became subject to same requirements as savings deposits. 4 Beginning Oct. 16, 1969, a member bank is required under Regula­ 6 See preceding columns for earliest effective date of this rate. tion M to maintain, against its foreign branch deposits, a reserve equal to 10 per cent of the amount by which (1) net balances due to, and certain Note,—All required reserves were held on deposit with F.R. Banks assets purchased by, such branches from the bank’s domestic offices and June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. I960, member (2) credit extended by such branches to U.S. residents exceed certain banks were allowed to count part of their currency and coin as reserves; specified base amounts. Regulation D imposes a similar 10 per cent reserve effective Nov. 24, 1960, they were allowed to count all as reserves. For further details, see Board’s Annual Reports. MARGIN REQUIREMENTS (Per cent of market value) Effective date Regulation Apr. 23, Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, Mar. 11, June 8, 1955 1958 1958 1958 1960 1962 1963 1968 1968 Regulation T: For credit extended by brokers and dealers on— Listed stocks....................................................... 70 50 70 90 70 50 70 70 80 Listed bonds convertible into stocks................. 50 60 For short sales........................................................ 70 50 70 90 70 50 70 70 80 Regulation U: For credit extended by banks on— Stocks.............................................................. 70 50 70 90 70 50 70 70 80 Bonds convertible into listed stocks.................. 50 60 Regulation G: For credit extended by others than brokers and dealers and banks on— Listed stocks....................................................... 70 80 Bonds convertible into listed stocks.................. 50 60 Note.—Regulations G, T, and U, prescribed in accordance with ference between the 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

SEPTEMBER 1969 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan, 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, 1962 1963 1964 1965 1966 1966 1968 Savings deposits: 1 Savings deposits............................. 4 4 4 L 1 e 2 s m s o th n a th n s 1 o 2 r m m o o n r t e h . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 14 4 3^ } 4 4 Ot M he u r lt t i i p m le e d m e a p t o u s r i i t t s y : : 2 3 90 days or more................... 5 5 5 Other time deposits: 2 Less than 90 days................ 4 4 4 (30-89 days) 12 months or more....................... 4 } 4 Single-maturity: 6 months to 12 months................. 4*4 Less than $100,000.............. 5^ 5 5 90 days to 6 months..................... 514 $100,000 or more: Less than 90 days......................... 1 1 4 30-59 days............................ 514 | 5^ (30-89 days) 60-89 days........................... 5% 90-179 days......................... 5^ 6 180 days and over............... 6*4 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ Note.—-Maximum rates that may be paid by member banks as estab­ imum rates on postal savings accounts coincided with those on savings lished by the Board of Governors under provisions of Regulation Q; deposits. however, a member bank may not pay a rate in excess of the maximum 2 For exceptions with respect to certain foreign time deposits, see rate payable by State banks or trust companies on like deposits under Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb, 1968, the laws of the State in which the member bank is located. Beginning p. 167. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 3 Multiple-maturity time deposits include deposits that are automati­ commercial banks, as established by the FDIC, have been the same as cally renewable at maturity without action by the depositor and deposits those in effect for member banks. that are payable after written notice of withdrawal. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n ks try Item m b e a A m n l k b l 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 July 16, 1969 Four weeks ending Aug. 13, 1969 Gross demand—Total.... 177,738 41 ,551 7,462 62,367 66,358 Gross demand—-Total. . . 174,249 40,378 7,195 61 ,254 65,421 Interbank..................... 21,561 9,247 1 ,306 8,572 2,436 Interbank..................... 21,081 9,048 1 ,230 8,457 2,347 U.S. Govt................. 4,853 879 249 1 ,998 1 ,726 U.S. Govt................... 4,782 912 274 1 ,929 1,667 Other............................ 151,324 31,424 5,907 51 ,798 62,196 Other........................... 148,385 30,418 5,691 50,869 61,407 Net demand 1................. 130,440 23,034 5,731 44,455 57,220 Net demand 1......... 130,915 23,888 5,492 46,304 55,231 Time................................. 156,863 15,805 5,129 59,763 76,166 Time................................ 154,171 15,013 4,923 58,431 75,804 Demand balances due Demand balances due from dom. banks......... 9,704 453 409 2,569 6,274 from dom. banks........ 9,361 396 303 2,666 5,997 Currency and coin........... 4,657 381 82 1,442 2,753 Currency and coin.......... 4,683 374 81 1 ,448 2,780 Balances with F.R. Balances with F.R. Banks.......................... 22,573 4,527 1 ,140 9,478 7,427 Banks.......................... 22,257 4,433 1,111 9,326 7,388 Total reserves held......... 27,230 4,908 1,222 10,920 10,180 Total reserves held......... 26,940 4,807 1,192 10,774 10,168 Required....................... 26,985 4,865 1,216 10,917 9,988 Required. .................. 26,662 4,757 1,188 10,738 9,979 Excess........................... 244 43 6 3 192 Excess......................... 278 50 4 36 189 1 Demand deposits subject to reserve requirements are gross demand Note.—-Averages of daily figures. Balances with F.R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ SEPTEMBER 1969 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1969 1969 1968 Aug. 27 Aug. 20 Aug. 13 Aug. 6 July 30 Aug. 31 July 31 Aug. 31 Assets Gold certificate account............................................... 10,027 10,027 10,027 10,027 10,027 10,027 10,027 10,026 Cash.............................................................................. 149 153 153 154 156 151 158 332 Discounts and advances; Member bank, borrowings................................... 1 ,463 1,125 370 1,152 985 1,514 750 529 Other..................................................................... Acceptances: Bought outright........................................................ 40 41 41 41 41 40 40 51 Held under repurchase agreements.......................... 20 46 22 Federal agency obligations—Held under repurchase agreements........................................................... 27 70 39 U.S. Govt, securities: Bought outright: Bills........................................................................ 19,985 19,701 19,138 19,442 18,287 19,985 19,442 19,111 Certificates—Special............................................. Other............................................... Notes..................................................................... 30,553 30,553 30,553 30,553 30,553 30,553 30,553 28,205 Bonds..................................................................... 4,143 4,143 4, 143 4,143 4,143 4,143 4,143 5,728 Total bought outright............................................... 54,681 54,397 53,834 54,138 52,983 54,681 54,138 53,044 Held under repurchase agreements.......................... 219 113 673 230 Total U.S. Govt, securities.................................. 54,900 54,397 53,947 54,811 52,983 54,911 54,138 53,044 Total loans and securities............................................. 56,450 55,563 54,358 56,120 54,009 56,526 54,928 53,624 Cash items in process of collection.............................. ”8,440 ”9,327 ”9,351 ”9,107 8,743 ”7,695 8,381 6,982 Bank premises............................................................. 114 114 1 14 114 114 114 114 113 Other assets: Denominated in foreign currencies....................... 1,929 2,078 1,680 1 ,648 1,780 1 ,929 1,670 1 ,055 IMF gold deposited 1........................................... 228 228 228 228 228 228 228 230 All other................................................................ 445 411 652 626 588 464 588 337 Total assets.................................................................. ”77,782 ”77,901 ”76,563 ”78,024 75,645 ”77,134 76,094 72,699 Liabilities F.R. notes..................................................................... 45,196 45,199 45,258 45,133 44,881 45,151 44,820 42,396 Deposits: Member bank reserves.............................................. ”22,519 ”22,119 ”20,474 ”22,703 20,366 ”22,789 21,809 21,808 U.S. Treasurer—General account............................ 953 956 1,100 585 1 ,227 894 935 916 Foreign...................................................................... 138 116 141 153 121 143 158 127 Other: IMF gold deposit 1............................................... 228 228 228 228 228 228 228 230 All other................................................................ 254 256 258 240 237 215 236 233 Total deposits............................................................... ”24’, 092 ”23,675 ”22,201 ”23,909 22,179 ”24,269 23,366 23,314 Deferred availability cash items................................... 6,435 7,039 7,182 6,8.34 6,557 5,597 5,820 5,145 Other liabilities and accrued dividends........................ 503 491 484 512 452 525 504 389 Total liabilities.............................................................. ”76,226 ”76,404 ”75,125 ”76,388 74,069 ”75,542 74,510 71,244 Capital accounts Capital paid in. . ......................................................... 664 663 664 662 662 665 663 618 Surplus.......................................................................... 630 630 630 630 630 630 630 598 Other capital accounts .................................................. 262 204 144 344 284 297 291 239 Total liabilities and capital accounts.......................... ”77,782 ”77,901 ”76,563 ”78,024 75,645 ”77,134 76,094 72,699 Contingent liability on acceptances purchased for foreign correspondents......................................... 159 161 161 161 152 159 162 149 U.S. Govt, securities held in custody for foreign account.................................................................. 8,072 7,851 7,878 7,589 7,450 8,058 7,419 7,590 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 47,938 47,932 47,869 47,952 47,748 48,001 47,712 45,197 Collateral held against notes outstanding: Gold certificate account........................................ 3,282 3,282 3,282 3,282 3,282 3,282 3,282 4,118 Eligible paper......................................................... U.S. Govt, securities................................................. 46,031 46,031 45,981 45,981 45,981 46,031 45,981 42,291 Total collateral.............................................................. 49,313 49,313 49,263 49,263 49,263 49,313 49,263 46,409 1 See note I (b) to table at top of page A —75. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 1969 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e il i l a a ­ ­ C l l a e n v d e­ R m i o c n h d ­ At t l a an­ C ca h g i o ­ Lo S u t. is M ap in o n li e s ­ K C s a a it s n y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account..................... 10,027 539 1 ,935 683 789 930 603 1 ,706 489 156 353 406 1 ,438 F.R. notes of other banks.................. 734 85 159 75 46 56 82 33 27 32 30 20 89 Other cash........................................... 151 5 13 7 18 1 1 24 14 15 3 12 10 19 Discounts and advances: Secured by U.S. Govt, securities.... I ,090 123 235 20 49 101 52 281 17 14 64 25 109 Other............................................... 424 167 20' 6 40 ♦ 1 58 17 115 Acceptances: Bought outright.......................... 40 40 Held under repurchase agreements.. 22 22 Federal agency obligations—Held under repurchase agreements.... 39 39 U.S. Govt, securities: Bought outright......................... 54,681 2,806 13,604 2,808 4,254 4,072 2,938 9,002 1 ,886 1,102 2,115 2,341 7,753 Hei J under repurchase agreements.. 230 230 Total loans and securities.................. 56,526 2,929 14,337 2,828 4,323 4,179 2,990 9,323 1 ,903 1,117 2,237 2,383 7,977 Cash items in process of collection... 10,108 597 1 ,685 510 707 823 1 ,006 1 ,693 490 379 702 629 887 Bank premises.................................... 114 2 9 2 5 11 18 17 8 5 19 9 9 Other assets: Denominated in foreign currencies.. 1 ,929 93 1490 100 172 100 123 286 68 44 83 110 260 228 228 All other......................................... 464 24 117 23 37 37 25 74 16 9 18 20 64 Total assets......................................... 80,281 4,274 18,973 4,228 6,097 6,147 4,871 13,146 3,016 1,745 3,454 3,587 10,743 Liabilities F.R. notes . ......................................... 45,885 2,640 10,561 2,641 3,721 4,165 2,425 8,149 1,696 786 1 ,723 1,661 5,717 Deposits: Member bank reserves.................... 22,789 923 6,101 978 1 ,517 1,082 1 ,376 3,309 762 547 1 ,018 1 ,252 3,924 U.S. Treasurer—General account.. 894 48 58 79 81 94 84 66 97 59 74 81 73 Foreign........................................... 143 6 346 7 12 7 8 19 4 3 6 7 18 Other: IMF gold deposit 2 ... ... . . 228 228 Al! other...................................... 217 1 180 1 1 8 2 5 i 1 2 1 14 Total deposits..................................... 24,271 978 6,613 1 ,065 1 ,611 1,191 1 ,470 3,399 864 610 1,100 1 ,341 4,029 Deferred availability cash items...... 8,008 554 1,245 415 587 669 850 1 ,280 385 306 545 479 693 Other liabilities and accrued dividends 525 25 138 25 38 35 27 79 17 8 20 21 92 Total liabilities.................................... 78,689 4,197 18,557 4,146 5,957 6,060 4,772 12,907 2,962 1 ,710 3,388 3,502 10,531 Capital accounts Capital paid in................................ 665 32 176 34 59 34 43 98 23 15 28 37 86 Surplus................................................. 630 31 160 33 56 33 40 93 22 14 27 36 85 Other capital accounts........................ 297 14 80 15 25 20 16 48 9 6 11 12 41 Total liabilities and capital accounts. . 80,281 4,274 18,973 4,228 6,097 6,147 4,871 13,146 3,016 1 ,745 3,454 3,587 10,743 Contingent liability on acceptances purchased for foreign correspond­ ents............................................... 159 8 440 8 14 8 10 24 6 4 7 9 21 Federal Reserve Notes—Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).......................................... 48,001 2,769 11,031 2,733 3,975 4,293 2,569 8,439 1 ,782 821 1 ,807 1,770 6,012 Collateral held against notes out­ standing: Gold certificate account................. 3,282 200 500 300 560 535 .......1 ..,.0..00 155 27 ........... 5 ............ Eligible paper.................................. U.S. Govt, securities....................... 46,031 2,601 10,800 2,600 3,500 3,810 2,650 7,650 1 ,700 815 1 ,825 1 ,830 6,250 Total collateral.................................... 49,313 2,801 11,300 2,900 4,060 4,345 2,650 8,650 1 ,855 842 1,825 1 ,835 6,250 1 After deducting $1,439 million of participations of other Federal 3 After deducting $97 million of participations of other Federal Re­ Reserve Banks. serve Banks. 2 See note 1 (b) to table at top of page A-75. 4 After deducting $119 million of participations of other Federal Re­ serve Banks. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ SEPTEMBER 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., Gross Gross Gross maturity Gross Exch. pur­ Gross Redemp­ pur­ Gross Redemp­ pur­ Gross shifts, pur­ Gross or . chases sales tions chases sales tions chases sales or chases sales maturity redemp­ shifts tions ] 968—July............ 404 409 65 404 409 65 Aug............. 1,111 140 87 1 ,028 140 87 14 -4,778 24 142 Sept............ 5,515 5,605 115 5,403 5,605 115 31 31 Oct............. 2,736 2,246 2,601 2,246 53 308 27 -308 Nov............ 3,602 3,430 150 3,602 3,430 150 -6,293 5,586 Dec............. 6,100 6,334 180 6,100 6,334 180 358 -358 1969—Jan............. 4,011 4,590 231 4,011 4,590 231 Feb............. 1 ,234 1,110 175 1 ,149 l.HO 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 May........... 2,368 1,444 2,173 1,444 33 10,883 78 10,895 June 4,586 3,993 7 4,586 3,993 7 July............ 3,495 3,251 200 3,428 3,251 200 to 24 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal acceptances (U.S. Govt, Net agency 5-10 years Over 10 years securities) change obliga­ Month in U.S. tions Under Net Govt, (net re­ repur­ change1 Exch. Exch. secur­ purchase Out­ chase Gross or ma­ Gross or ma­ Gross ities agree­ right, agree­ pur­ Gross turity pur­ Gross turity pur­ Gross ments) net ments, chases sales shifts chases sales shifts chases sales net 1968—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 May. .. 60 12 24 4,192 4,470 646 1 -5 -60 582 June... 1,312 1 ,562 336 -80 -5 -30 220 July... . 23 10 560 560 44 -1 43 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 miHions of U.S. dollar equivalent) Nether­ End of Total Pounds Austrian Belgian Canadian Danish French German Italian Japanese lands Swiss period sterling schillings francs dollars kroner francs marks lire yen guilders francs 1967—Dec............. 1 ,604 1,140 45 3 1 413 1 1 * 2 1968—May........... 1 ,926 1 544 50 256 1 67 2 1 2 4 June........... 1 ,009 503 52 1 32 25 101 134 I 57 4 July............ 1 ,217 851 52 8 25 151 69 1 I 57 2 Aug............. 1 ’055 601 53 4 25 235 75 1 1 57 3 Sept........... 1,281 698 13 4 452 75 1 I 33 3 Oct............. 1 '273 694 124 4 378 65 1 I 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 Mar............ 2,059 1 ’,396 23 I 461 160 13 1 4 1 Apr............. 1 ^960 1 ,245 44 1 50 436 163 15 1 4 May........... 1,889 1 ,542 50 176 * 100 • • 15 1 4 1 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 Aug. 27 Aug. 20 Aug. 13 Aug. 6 July 30 Aug. 31 July 31 Aug. 31 Discounts and advances—Total.................................. 1 ,463 1,125 370 1 ,152 985 1 ,514 750 529 Within 15 days.......................................................... 1 ,454 1,110 351 1 ,129 965 1 ,506 730 523 16 days to 90 days.................................................. . 9 15 19 23 20 8 20 6 Acceptances—Total...................................................... 60 41 41 87 41 62 40 51 Within 15 days.......................................................... 36 12 9 53 8 37 7 16 16 days to 90 days.................................................. . 24 29 32 34 33 25 33 35 91 days to 1 year....................................................... U.S. Government securities—Total............................ 54,927 54,397 53,947 54,881 52,983 54,950 54,138 53,044 Within 15 days1........................................................ 3,064 2,835 2,274 3,229 1 ,719 1 ,746 1 ,659 1 ,494 1 6 days to 90 days.................................................. 9,313 9,002 9,311 9,227 8,859 10,199 8,815 15,549 91 days to 1 year...................................................... 21,101 21,111 20,505 20,568 20,548 21 ,556 21,807 17,359 Over 1 year to 5 years............................................. 12,229 12,229 7,715 7,715 7,715 12,229 7,715 7,902 Over 5 years to 10 years........................................... 8,549 8,549 13,471 13,471 13,471 8,549 13,471 10,141 Over 10 years............................................................ 671 671 671 671 671 671 671 599 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 Turnover of demand deposits (billions of dollars) Period Leading SMSA’s Total 232 Leading SMSA’s Total 232 Total SMSA's 226 Total SMSA’s 226 233 (excl. other 233 (excl. other SMSA’s N.Y. 6 others2 N.Y.) SMSA’s SMSA's N.Y. 6 others2 N.Y.) SMSA’s 1968—July............................. 8 163 0 3 726 1 1 807 9 4 436 9 7 629 0 64 3 140 3 59 9 43 7 Aug............................. 8 521 8 4 079 6 1 *825 2 4’4422 7 61 7 0 65 2 147 7 60 8 43 7 Jo. J Sept............................. 8,368.4 3,857 8 1 840 2 4’510 6 2*670 4 64 7 144 7 61 3 43 8 7 Oct............................ 8 599.8 3 953 7 1 904 9 4 646 1 2*741 2 66 3 i 43 i 64 4 45 6 J1 7/ . 77 Nov............................ 8,540.1 3 925 9 1 904 1 4614 2 2710 1 66 5 144 6 63 6 44 9 3j 7/ .a Dec............................. 8'752.9 4 076 8 1*902 4 4 676.1 2’773 7 65 9 147 7 61 1 445 17 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 17 7 Feb.............................. 8 832 8 3’929 8 2.'047 4 4 903 0 2*855 6 67 8 145 4 67 8 47 4 11 Mar............................. 8,723.3 3'882 8 1'974.3 4’840^5 2 866 2 65 8 i 43 1 64 5 46 1 3Jo8 .79 Apr............................ 8'883.9 3 902 0 2’028 9 4’981.9 2*953 0 65 9 1 38 2 66 1 46 8 39 2 May............................ 9 147.6 4 097 6 2 083 2 5 050 0 2*966 8 68 7 146 6 67 3 48 0 J1Qy . 7/ June............... . . 9’385 4 4’155'7 2*164 4 5 229 7 3 065 3 68 6 143 3 68*4 48 4 t1 July............................. 9’242.7 3^908^6 2 244 4 5^334'1 3*089 7 68 3 138.6 70 9 49 1 Aug............................. 1 Excludes interbank and U.S. Govt, demand deposit accounts. Note.—Total SMSA's includes some cities counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA’s. Los Angeles-Long Beach. For a description of series, see Mar. 1965 Bulletin, p. 390. The data shown here differ from those shown in the Mar. 1965 Bulletin because they have been revised, as described in the Mar. 1967 Bulletin, p. 389. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ SEPTEMBER 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 2,545 3 044 724 1 433 261 556 24 46 1945 ..................... 28 515 20 683 1 274 1 ,039 73 2 313 6 782 9’201 7’834 2 327 4 220 454 801 7 24 1947..................... 28 868 20 020 1 404 1 048 65 2,110 6,275 9 119 8 850 2*548 5 ’070 428 782 5 17 1950..................... 27 741 19 305 1 ’554 1 113 64 2 049 5 998 8 529 8 438 2 422 5 *043 368 588 4 12 1955 ..................... 31’158 22 021 1 927 1 ’312 75 2 151 6 617 9 940 9 136 2 736 5*641 307 438 3 L2 1958 ..................... 32 J 93 22^856 2’ 1 82 1 394 83 2'l86 6’624 10’288 9’337 2 792 5*886 275 373 3 9 1959 ..................... 32,591 23,264 2 304 1,511 85 2,216 6,672 10 476 9,326 2 803 5 913 261 341 3 5 1960..................... 32 869 23’521 2 427 I '533 88 2 246 6’691 10536 9 348 2815 5 954 249 316 3 10 1961................... 33’918 24’388 2'582 I 588 92 2 313 6*878 10 935 9531 2*869 6*106 242 300 3 10 1962..................... 35'338 25 356 2'782 1 ,636 97 2 375 7’071 1i’395 9 983 2 990 6*448 240 293 3 10 1963 ................... 37*692 26’807 3 030 1 722 103 2 469 7 373 12,109 10 885 3’221 7110 249 298 3 4 1964..................... 39,619 28 100 3 405 1 ’806 111 2’517 7’543 12 717 11 519 3381 7 590 248 293 2 4 1965 ..................... 42,056 29,842 4,027 1 ,908 127 2’618 7’794 13’369 12,214 3’540 8 135 245 288 3 4 1966..................... 44’663 31 ’695 4’480 2351 1 37 2’756 8 070 14 201 12’969 3 700 8*735 241 286 3 4 1967..................... 47 226 33 468 4 918 2’035 136 2 850 8 366 15 162 13 758 3*915 9311 240 285 3 4 1968—July........... 47 979 33 963 5 385 1 ,871 136 2 720 8,261 15 590 14 015 3 971 9 511 240 286 3 4 Aug........... 48 353 34 238 5 449 1 '863 136 2’728 8 309 15 753 14 115 3’999 9'581 240 287 3 4 Sept........... 48 340 34,161 5 498 1 372 136 2732 8,269 15 654 14’179 4'002 9 641 241 288 3 4 Oct............ 48 719 34,421 5,565 1 300 136 2 763 8,'336 15^722 14’299 4 028 9'734 241 289 3 4 Nov........... 49’989 35’489 5’625 1 ’957 1 36 2 862 8 627 16’282 14 500 4 092 9 869 242 290 3 4 Dec........... 50 961 36 163 5 691 2 049 136 2 993 8,786 16 508 1 4798 4'186 10 068 244 292 3 4 1969—Jan............ 48 983 34 401 5 673 1 907 136 2 779 8 257 15 650 14 582 4 090 9 951 244 291 3 4 Feb............ 48,996 34,421 5,603 1 ,895 1 36 2 784 8’318 15,685 14,576 4*080 9*955 243 291 4 4 Mar........... 49 475 34 792 5 645 1 909 1 36 2 806 8’383 15 915 14'682 4 102 10 023 244 291 3 19 Apr........... 49 642 34’895 5 692 1 934 1 36 2’815 8’363 15 955 14 747 4’130 10*073 244 292 3 4 May.......... 50 399 35 529 5’730 I 971 1 36 2 861 8 531 16 300 14869 4'158 10 166 244 292 3 5 June...... 50 936 35 920 5’790 1 989 136 2’882 8*592 16 531 15 016 4212 10*259 245 292 3 5 July........... 51,120 35,981 5,827 1 ,992 136 2,852 8,546 16,629 15,139 <25! 10345 243 291 3 5 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by standing, As security For F.R. 1969 1968 Kind of currency Ju 1 ly 96 9 31, g a o s g l i d l a v i e n a r s n t d Tre ca a s s h ury B F a a . n n R d k . s A B g a a e n n d n k t s s July June July certificates Agents 31 30 31 Gold.............................................................................. 10,367 (10,027) 2340 Gold certificates............................................................ (10,027) 310,026 1 Federal Reserve notes................................................... 47,713 125 2,893 44,695 44,547 41 ,982 Treasury currency.—Total............................................. 6,748 166 158 6,424 6,389 5,996 Standard silver dollars.................................................. 485 ................. 3 ................. 482 482 482 Fractional coin......................................................... 5,635 137 154 5,345 5,308 4,904 United States notes................................................... 323 26 3 293 294 302 In process of retirement4.......................................... 305 305 305 309 Total—-July 31,1969.................................................. 564,828 (10,027) 631 10,026 3,052 51,120 June 30, 1969..................................................... 564,387 (10,027) 633 10,026 2,792 50,936 July 31, 1968..................................................... 561,926 (10,026) 803 10,024 3,120 47,979 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 Docs not include all items shown, as some items represent the security outside the United States and currency and coin held by banks. Esti­ for other items; gold certificates are secured by gold, and silver certificates mated totals for Wed. dates shown in table on p. A-5. by standard silver dollars and monetized silver bullion. Duplications 2 Includes $228 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, sec the Circulation Statement or the Aug. 1961 Bulletin, p. 936. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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 po o a s n n i e t d n t jus a te d d ­ 1 d d e e p m os a i n ts d ’ 1965—Dec................................................. 166. 8 36. 3 130.5 146.6 172,0 37.1 134 9 145 2 4.6 1966—Dec................................................. 170.4 38 3 132.1 158.1 175.8 39.1 1 36.7 156.9 3.4 1967—Dec................................................. 181 .7 40 4 141.3 183.5 187.5 41 .2 146.2 182.0 5.0 1968—Aug.. ............................................. 191 .2 42.6 148.6 193.8 187.8 42.7 145.2 194.4 5.5 Sept................................................. 190.6 42.7 147.9 196.6 189.7 42.7 147.0 196.2 5.9 Oct................................................ 1 91.5 42. 8 148.7 199.5 191.8 42,9 149.0 199.1 6.1 Nov................................................. 193.3 43.2 150. 1 201.9 194.8 43.7 151.2 200.7 4.2 Dec................................................ 194.5 43 4 151.1 204.3 200.7 44. 3 1 56.4 202.5 4.8 (969—-Jan.................................................. 195.4 43.6 151.9 202.5 201.3 43.5 157.8 202.1 4.7 Feb................................................. 195.7 43.9 151.8 201.0 194.3 43.4 150.9 201.6 6.6 Mar................................................. 195.9 44.2 151.7 201.0 194.4 43,8 150.7 202.0 4.5 Apr................................................. 197.5 44.2 153.3 200.8 198.5 43.9 154.6 201.6 5.1 197 4 44 6 152,9 200. 1 193 7 44.3 149.5 200.9 8.8 June...................................... 198.2 44.9 153.3 199.2 196. 3 44,8 151 .5 199.6 5.7 July............................................... 199.1 45 I 154.0 195.8 197.1 45.3 151 .7 196.2 5.3 Aug.”............................................ 198.4 45.3 153.1 193.3 195.1 45.4 149.7 193.8 4.0 Week ending— 1969—ju]y 9.......................................... 199.8 45.1 154.7 196.9 197.7 45.9 151.8 197.3 5.4 ' 16......................................... 199.0 45 0 154.0 196.0 198.1 45.3 1 52.8 196.4 3.0 23......................................... 198.7 45 2 153.5 195. 3 195.6 45.2 150.4 195.7 6.7 30......................................... 198 0 45 1 152.9 194.7 195.7 44.8 150.8 195.1 6.1 Aug. 6......................................... 198.4 45.2 153.2 194.0 196.8 45.5 151.2 194.6 5.1 ~ 13.............................. 198.6 45.3 153.4 193.5 195.6 45.6 150.1 194.3 3.8 20......................................... 198 9 45 3 153 4 193 2 194 5 45.5 149.1 193.8 3.2 27r»........................................ 197.8 45.3 152.5 192.9 193.1 45.1 148.0 193.4 4.5 1 At all commercial banks. mercial banks and the U.S. Govt., less cash items in process of collection and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ N m o o t n e e . y — s F u i p g p u l r y e s (S f . o A r . a th n e d d N e . m S. a A n . d ) r d e e fle p c o t s i t t h e c o in m te p r o im ne n re t v a is n i d o n f o in r t t h h e e s t e o ri t e a s l r b e a n n c k y s . ou T ts i i m de e t d h e e p T os re it a s su a r d y j , u s F te .R d . a B re a nk ti s m , e a n d d e p v o a s u it l s ts a o t f a a l l l l c c o o m m m m e e r r c c i i a a l l as published in the Aug. 14, 1969, release “Demand Deposits, Currency, and Related Items” (H.6). Further revisions are pending. b U a .S nk . s G o o v th t. e r E f t f h e a c n ti ve th J o u s n e e d 9 u , e 1 9 to 66 , d b o a m la e n s c t e ic s c a o cc m u m m e u r l c a i t a e l d b f a o n r k p s a y a m n e d n t t h o e f 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) Member bank reserves, S.A.1 Deposits subject to reserve requirements2 S.A. N.S.A. . Period Total Non­ Required borrowed Time Private U.S. Time Private U.S. Total and demand Govt, Total and demand Govt, savings demand savings demand 1965—Dec.............................. 23.26 22.82 22.83 236.6 121,2 111.0 4.4 239.0 119,8 115.2 4.0 1966—Dec............................ 23.52 22.98 23.17 244.6 129 4 111.7 3.5 247. 1 127.9 116.1 3.0 1967—Dec............... 25.94 25.68 25.60 273.5 149.9 118.9 4.6 276.2 148.1 123.6 4.5 1968—Aug.............................. 27.21 26.68 26.89 286.9 156.5 125.6 4.8 284.6 157.2 122.6 4.8 Sept.............................. 27,31 26.86 26.95 289.0 158.9 124.8 5.3 287.8 158.6 124.1 5.2 Oct............................ . 27.50 27.07 27.19 292.2 161.5 125.7 5.0 292.4 161.0 126.0 5.4 Nov.............................. 27.69 27.10 27.38 295.0 163.5 126.8 4.7 293.8 162.3 127.9 3.6 Dec.............................. 27.96 27.22 27.61 298.2 165.8 128.2 4.2 301,2 163.8 133.3 4.1 1969—Jan............................... 28.14 27.32 27.90 297.0 163.2 128.4 5.4 300.8 162.7 134.0 4.2 Feb.............................. 28.06 27.21 27.83 296.7 161.0 129.1 6.7 295.8 161.8 128. 1 5.9 Mar.............................. 27.97 27.02 27.73 294.2 160.5 128,9 4.8 293.3 161.6 127.8 3.9 Apr.............................. 27.78 26.75 27.61 295.4 160.1 129,4 5.9 296.0 160.9 130.5 4.5 May.......................... . 28.24 26.89 27 94 295 1 159 3 130 0 5.9 294.2 160,1 126.3 7.9 June............................. 28.06 26.71 27.74 292.6 158,1 130,5 4.0 292,0 158.6 128.4 5.0 July.............................. 27.53 26 28 27. 33 288 0 155.1 130 5 2.4 288.8 155 4 128.7 4.7 Aug.”.......................... 27.40 26.21 27.16 285.4 152.5 130.0 2.8 283,6 153.2 127.0 3.5 1 Averages of daily figures. Data reflect percentage reserve require­ inated from time deposits for reserve purposes. Jan. 1969 data are not ments made effective Apr. 23, 1969. Required reserves are based on comparable with earlier data due to the withdrawal from the system on average deposits with a 2-week lag. Jan. 2, 1969, of a large member bank. 2 Averages of daily figures. Deposits subject to reserve requirements in­ clude total time and savings deposits and net demand deposits as defined Note.—Series revised back to June 1967. Seasonally adjusted data for by Regulation D. Private demand deposits include all demand deposits ex­ the period 1959 to date may be obtained from the Banking Section, cept those due to the U.S. Govt., less cash items in process of collection Division of Research and Statistics, Board of Governors of the Federal and demand balances due from domestic commercial banks. Effective June Reserve System, Washington, D.C. 20551. 9, 1966, balances accumulated for repayment of personal loans were elim­ Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 18 BANKS AND THE MONETARY SYSTEM □ SEPTEMBER 1969 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capita] Total Bank credit assets, net— Treas­ Total Date c u u r r y ­ U.S Government securities li i a ti b es il ­ Total Ca an p d it al Gold s r o t e i a n n u n g c t d ­ y ­ Total n L e o t a n L s , 2 Total s C a a v o n i m n d g l, s R Fe es d e e r r v a e l Other3 O r s it e t i h c e 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 a n u is c e n c ­ t t . s, banks Banks 1947—Dec, 31.................. 22,754 4,562 160,832 43,023 107,086 81,199 22,559 3,328 10,723 188,148 175,348 12,800 1950—Dec. 30................... 22'706 4'636 171'667 60'366 96*560 72'894 20,778 2,888 14,741 199,008 184'384 14’624 1967—Dec. 30................... 11'982 6,784 468 943 282,040 117 064 66’752 49,112 1 '200 69’839 487 709 444,043 43’670 1968—Aug. 28................. 10,400 6,700 485,500 291 JOO 118,400 65,700 52,600 100 76,000 502,600 451,700 50,900 Sept. 25................... 10*400 6,700 492,500 295,700 119*100 66 J00 52,400 100 77,700 509*600 458,100 51 J00 Oct. 30................... 10^400 6,800 498 J00 296’800 122'400 68 J00 53^600 100 78,900 515 300 464’200 51 J00 Nov. 27................... 10’400 6,800 500 100 300*400 120 0O0 66’700 53’200 100 79,700 517 300 466 J00 50,900 Dec. 31................... IO’367 6,795 514,427 311 J34 121,273 68,285 52’937 51 81 J20 531 589 484,212 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 6,800 503,000 306’000 115’500 63 ,’500 51,900 100 81'500 520’200 466'800 53 J00 Mar. 26.................. 10^400 6,800 504 J00 307’300 114 600 62 J00 52^000 100 82,300 521’300 466'300 54’900 Apr. 30p................. 10’400 6,700 510’200 312’400 114 900 61 '800 53 J00 100 82'900 527,300 471,700 55,600 10,400 6'700 506*700 311 800 112500 59 000 53,400 100 82,400 523 800 465’400 58^400 June 25'p.......... 14,400 6,800 510,500 316 JOO 110 J00 57,400 53 J00 83,000 527,600 467 J00 60,500 July 30 rp............... 10,400 6,700 512 100 319 300 III 100 58 100 53,000 81,700 529 200 462 300 66,900 Aug. 27p................. 10 J00 6,800 509,500 315,500 112’600 57’700 54,900 ....8..1. .J..0...0 526,600 459’,600 67,000 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 4 Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n u n s c i k r d y ­ s e d m e D p a a o d e n s ­ ­ d it s Total o b r u C e a t n s n u c i k r d y ­ s e d m e D a p a d o e n s ­ ­ d it s Total b m C a e n o r k m c s ia ­ l 1 b M s a a u n vi t k n u s g a s l 6 S P t a S e o v y m s i s n t ­ a 3 g l s e n F i e g o t n r , ­ 7 T h c r u o a e r s l a y d h s ­ ­ s c a a o v A n i m n d t g l . s B F A a .R n t k . s justed 3 justed 5 ings banks 1947—Dec. 3!.... 110J00 26,100 84,400 113 J97 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.. . . 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2 J23 2,518 1,293 2J89 668 1967—Dec. 30.... 181 JOO 39,600 141,900 191,232 41,071 150 J61 242,657 182,243 60,414 2 J79 1,344 5,508 1,123 1968—Aug. 28 . . . 186,400 41 JOO 145,100 184,700 41 JOO 143 200 257,800 194,900 63,000 2,000 800 5,300 1 ,000 Sept. 25.. . •. 186’600 41 ,400 145 JOO 185’400 41 JOO 143,900 259 JOO 196^400 63 JOO 2,100 800 8 JOO 1 ,000 Oct. 30... . 188’400 41^600 1 46 JOO 190 JOO 41 JOO 148 300 263 JOO 200^000 63 JOO 2,100 800 6'400 I JOO Nov. 27.. 190'800 42,300 1 48 JOO 193 800 43 JOO 150 300 265 400 201 JOO 63 JOO 2,400 800 3'600 '400 Dec. 31... . 199 J00 42,600 157^000 207 347 43 527 163 820 267 J27 202,’786 64 J41 2,455 695 5’385 703 1969—Jan. 29.... 190 J 00 42,800 147 JOO 192 500 42 200 150 400 266,000 201 JOO 64 900 2 JOO 800 7 900 500 Feb. 26. 191 J00 42 J00 148 500 190 500 42 300 148 100 266 700 201 JOO 65’200 2,100 800 6 200 600 Mar. 26.... 193 J00 43 J00 150 300 190’700 42 800 147 900 267 700 201 JOO 65 900 2,100 700 4 600 500 192’000 43 JOO 148,700 192’000 42,900 149 100 266,400 200,700 65,700 2 JOO 700 9,400 1 ,000 May 28*... 191'000 43,600 147'400 188 700 43’500 145 200 266 600 200'600 66 000 2,100 700 6 JOO 400 June 25 rP.. 194 J00 43,700 150J00 191,600 43,700 147 JOO 264 JOO 198,400 66,400 ........... 2,200 700 6,300 1 JOO July 30rP.. 191,600 44,000 147,600 191 400 44,100 147 300 260 JOO 194,600 66,200 2,300 700 5 JOO 1 JOO Aug. 27p. . . 192,900 44^000 148,900 191 JOO 44 JOO 147,000 259 JOO 193,100 66 JOO ........... 2,100 700 5 JOO 1 '000 1 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits 7 Reclassification of deposits of foreign central banks in May 1961 re­ accumulated for payment of personal loans** we.re excluded from “Time duced this item by $1,900 million ($1,500 million to time deposits and $4 00 deposits’* and deducted from “Loans’* at all commercial banks. These million to demand deposits). changes resulted from a change in Federal Reserve regulations. These hy­ pothecated deposits are shown in a table on p. A-23. Note.—Series revised beginning with data for July 1969 to conform 2 See note 2 at bottom of p. A-22. with recent substantive changes in official call reports of condition. See 3 After June 30, 1967, Postal Savings System accounts were eliminated Bulletin for August 1969, pp. 642-46 from this Statement. 4 Series begin in 1946; data are available only for last Wed. of month. For back figures and descriptions of the consolidated condition 3 Other than interbank and U.S. Govt., less cash items in process of statement and the seasonally adjusted series on currency outside banks collection. and demand deposits adjusted, see “Banks and the Monetary System,’* 6 Includes relatively small amounts of demand deposits. Beginning with Section 1 of Supplement to Banking and Monetary Statistics, 1962, and June 1961, also includes certain accounts previously classified as other lia­ Bulletins for Jan. 1948 and Feb. 1960. Except on call dates, figures bilities. are partly estimated and are rounded to the nearest $100 million. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ COMMERCIAL AND MUTUAL SAVINGS BANKS A 19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b te ank Total Lo 1 a . n 2 s G U o S .S v e t . c . urit O ie t s h 2 er a C ss a e s t h s } c b c T o i a a l a l o u i i p n t c a t n i i d e ­ a t ­ t a s s l l 4 Total 3 m D I a n e n te ­ d rba T n im k3 e U.S D . e ma O nd ther T 1 im . 5 e r i • n o s w s - c c T o a a o u p c t n i a - t t a l s l N ba b u o n e m f k r s ­ Govt. Other AU banks: 1941—Dec. 31... 61,126 26,615 25,511 8,999 27,344 90,908 81,816 10,982 44,355 26,479 23 8,414 14,826 1945—Dec. 31... 140,227 30,361101 ,288 8,577 35,415 177,332 165,612 14,065 105.935 45,613 227 10,542 14.553 1947—Dec. 3l«.. 134,924 43,002 81,199 10,723 38,388 175,091 161,865 12,793 240 1,346 94,381 53,105 66 11,948 14,714 1967—Dec. 30. . 424,134 287,543 66,752 69,839 78,924 517,374 455,501 21 ,883 1 ,314 5,240 184,139 242,925 5,846 39,371 14,223 1968—Aug. 28. . 443,320 301,640 65,680 76,000 67,930 525,720 451,330 18,020 1,350 4,970 168,800 258,190 11,130 41 ,030 14,216 Sept. 25.. 450,040 305,710 66,680 77,650 70,840 535,690 459,990 19,250 1,410 8,540 170,5 80 260,210 11 ,660 41 ,280 14,209 Oct. 30.. 455,630 307,9306 8,760 78,940 72,690 543,410 467,330 19,690 1,3 30 6,070 176,220 264,020 11 ,670 41 ,590 14 205 Nov. 27. . , 458,600 312,210 66,730 79,660 77,600 551.410 472,830 20,500 1,260 3,250 182,100 265,720 13,020 41 ,770 14,187 Dec. 31. . . 470,167 320,062 68,285 81,820 84,748 571,805 498,945 24,747 1,213 5,017 199,973 267,995 18,972 42,275 14,179 1969—Jan. 29... 464,280 316,140 67,110 81,030 72,680 552,490 472,730 19,350 1,080 7,540 178,370 266,390 12,830 42,160 14,172 Feb. 26.. 463,440 318,480 63,460 81,500 72,480 552,830 469,810 19,550 1,010 5,830 176,330 267,090 13,010 42,530 14,172 Mar. 26.. 465,300 320,540 62,5008 2,260 72,990 555,460 469,630 19,910 990 4,250 176,440 268,040 14,360 42,720 14,176 Apr. 30?. 470,100 325,440 61,770 82,890 82,400 570,010 481,890 21,230 950 9,000 183,970 266,740 15,780 43,170 14,168 May 28’. . 468,870 327,480 59,0408 2,350 78,140 564,830 472,940 20,990 940 6,580 177,5 30 266,900 17,490 43,320 14,167 June 25rp 474,370 334,000 57,420 82,950 78,210 570,820 473,750 20,730 910 5,960 181 ,040 265,1 10 18,520 43,430 14,173 July 30rp. 477,520 337,720 58,090 81,710 75,870 572,670 467,910 21 ,060 850 5,540 179,310 270,150 19,450 43,740 14,179 Aug. 27p. . 474,280 335,260 57,700 81,320 77,680 570,860 465,720 21,410 860 4,900 178,890 259,660 21 ,270 43,920 14,180 Commercial banks: 1941—Dec. 31. .. 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31 . .. 124,019 26.083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 6.. 1 16,284 38,057 69,221 9.006 37,502 155.377 144,103 12,792 240 1,343 94,367 35,360 6510,059 14,181 1967—Dec. 30. . . 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 184,066 82,511 5,777 34,384 13,722 1968—Aug. 28... 375,550 248,050 61,480 66,020 67,020 455,820 388,280 18,020 1,350 4,970 168,720 195,220 11,130 35,850 13,714 Sept. 25... 382,080 251,920 62,540 67,620 69,850 465,490 396,410 19,250 1,410 8,540 170,480 196,730 11 ,660 36,090 13,707 Oct. 30. . . 387,450 253,860 64,760 68,830 71,780 473,100 403,580 19.690 1,330 6,070 176,120 200,370 11,670 36,400 13,703 Nov. 27... 390,010 257,730 62,820 69,460 76,690 480,640 408,830 20,500 1,260 3,250 182,000 201 ,820 13,020 36,510 13,687 Dec. 31 . . . 401,262 265,259 64,466 71,537 83,752 500.657 434,023 24,747 1,211 5,010 199,901203,154 8,899 37,006 13,679 1969—Jan. 29... 394,820 261,130 63,150 70,540 71,850 480,940 407,780 19,350 1,080 7,540 178,270 201 ,540 12,830 36,870 13,673 Feb. 26... 393,470 263,120 59,470 70,880 71,590 480,700 404,520 19.550 1,0(0 5,830 176,230 201 ,900 13,010 37,180 13,673 Mar. 26. .. 394,900 264,970 58,510 71,420 72,090 482,870 403,670 19,910 990 4,250 176,360 202,160 14,360 37,360 13,677 Apr. 30”.. 399,550 269,710 57.870 71,970 81,610 497,400 416,110 21,230 950 9,000 183,890 201 ,040 15,780 37,800 13,669 May 28?.. 397,900 271,330 55,220 71,350 77,240 491,670 406,850 20,990 940 6,580 177,450 200,890 17,490 37,890 13,668 June 25?.. 403,220 277,690 53,800 71,730 77,350 497,500 407,310 20,730 910 5,960 180,960 198,750 18,520 38,020 13,674 July 30?........... 406,280 281,290 54,460 70,530 75,020 499,280 401,620 21 ,060 850 5,540 179,230 194,940 19,450 38,300 13,682 Aug. 27?. ..... . 402,950 278,730 5 4,100 70,120 76,830 497,380 399,340 21 ,410 860 4,900 178,810 193,360 21,270 38,480 13,683 Member banks: 1941—Dec. 31....4.3,521 18.021 19.539 5,96123,123 68,121 61.71710,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31............. 107,183 22,775 78,338 6,070 29,845 138,304 129,670 13,576 64 22,179 69,640 24,210 208 7,589 6.884 1947—Dec. 31............. 97,846 32.628 57.914 7,304 32,845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1967—Dec. 30............. 293,120 196,849 46,956 49,315 68,946 373,584 326,033 20,811 1,169 4,631 151,980 147,442 5,370 28,098 6,071 1968—Aug. 28............. 304,669 205,850 45,898 52,921 59,497 375,766 317,186 17,088 1,193 4,181 138,031 156,693 10,684 29,240 6,019 Sept. 25............. 309,985 208,917 46,755 54,313 61,846 383,685 323,730 18,275 1,246 7,468 139,166 157,575 11,192 29,415 6,010 Oct. 30............. 314,164 210,270 48,704 55,190 63,275 389,598 329,287 18,673 1,169 5,226 143,684 160,535 11 ,153 29,687 6,002 Nov. 27............. 315,615 213,092 46,820 55,703 67,675 395,535 333,142 19,462 1 ,098 2,545 148,083 161 ,954 12,450 29,739 5,990 Dec. 31............. 325,086 220,285 47,88156,920 73,756 412,541 355,414 23,519 1,061 4,309 163,920 162,605 8,458 30,060 5,978 1969—Jan. 29............. 319,249 216,806 46,464 55,979 63,826 395,585 332,284 18,402 927 6,556 145,546 160.853 12,000 29,966 5,972 Feb. 26............. 317,925 218,407 43,387 56,131 63,247 394,742 329,130 18,593 860 4,907 144,065 160,705 12,179 30,190 5,967 Mar. 26............. 318,742 219,595 42,709 56,438 63,749 396,209 327,685 18,950 842 3,374 143,989 160,530 13,636 30,342 5,962 Apr. 30............. 322,920 223,609 42,372 56,939 72,398 409,340 339,062 20,260 796 7,981 150.719 159,306 14,888 30,699 5,955 May 28............. 321,197 224,696 40,177 56,324 68,479 403,971 330,433 20,054 790 5,405 145,261 158,923 16,467 30,752 5,944 June 25............. 326,064 230,266 39,174 56,624 68,183 408,932 330,191 19,776 756 4,870 147,984 156,805 17,358 30,869 5,938 July 30?........... 328,560 233,196 39,962 55,402 66,159 410,401 324,993 20,079 699 4,562 146,373 153,280 18,145 31,090 5,925 Aug. 27?........... 325,413 230,654 39,754 55,005 67,843 408,644 323,063 20,433 707 4,046 146,139 151,738 19,925 31,234 5,919 Mutual earings banks: 1941—Dec. 31..... 10,379 4,901 3,704 1,774 793 11,804 10,533...................... 6 10,527 .......... 1,241 548 1945—Dec. 31............. 16,208 4,279 10,682 1,246 609 17,020 15,385 ...................... 14 15,371 7 1,592 542 1947—Dec. 316........... 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 66,3 62 60,494 ......... 1 7 73 60,414 69 4,987 501 1968—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 3,819 10,283 996 71,148 64,922 ......... 2 7 72 64,841 73 5,269 500 1969—Jan. 29............. 69,460 55,010 3,960 10,490 830 71,550 64,950.................................. 100 64,850 ........ 5,290 499 Feb. 26............. 69,970 55,360 3,990 10,620 890 72,1 30 65,290 .................................. 100 65,190 ........ 5,350 499 Mar. 26............. 70,400 55,570 3,990 10,840 900 72,590 65,960 .................................. 80 65,880 ........ 5,360 499 Apr. 30. ....... 70,550 55,730 3,900 10,920 790 72,610 65,780 .................................. 80 65,700 ........ 5,370 499 May 28............. 70,9 70 5 6,15 0 3,820 11,000 900 73,160 66,090 .................................. 80 66,010 ........ 5,430 499 June 25r........... 71,150 56,310 3,620 1 1,220 860 73,3 20 66,440 .................................. 80 66,3 60 ........ 5,410 499 July 30r........... 71,240 56,430 3,630 11,180 850 73,390 66,290 .................................. 80 66,210 ......... 5,440 499 Aug. 27?........... 71,330 56,530 3,600 11,200 850 73,480 66,380.................................. 80 66,300 ......... 5,440 497 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 20 COMMERCIAL AND MUTUAL SAVINGS BANKS □ SEPTEMBER 1969 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Cla a s n s d o d f a b te ank Total Loans a C ss a e s t h s 3 c b a i a l l i p i n a ti i d e t ­ a s l Total3 Demand — r B in o o g w r s ­ ­ c c T o a a o u p c t n i a ­ t t a l s l b N a b o u n e f m k r s ­ *> 2 G U o .S vt . , Oth 2 er co a u c n ­ ts4 m D a e n ­ d Time U.S. Other Time1 Govt. Reserve city member banks: New York City:7 1941—Dec. 31................. 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31................. 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31................. 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1967—Dec. 30................. 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1 ,084 31,28220,062 l ,880 5,715 12 1968—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 40,729 6,191 7,985 16,669 75,060 56,259 6,776 691 2,198 27,136 19,458 3,605 6,108 12 Oct. 30................. 54,882 40,488 6,607 7,787 16,975 75,530 56,825 6,757 660 1,042 28,207 20,159 3,438 6,180 12 Nov. 27................. 55,084 41,429 5,881 7,774 18,243 77,069 57,653 7,363 633 170 28,675 20,812 3,914 6,129 12 Dec. 31................. 57,047 42,968 5,984 8,094 19,948 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 29,314 19,136 3,278 6,119 12 Feb. 26................. 54,596 42,652 4,495 7,449 17,659 76,545 56,323 7,123 469 924 29,340 18,467 3,299 6,156 12 Mar. 26................. 53,942 41,875 4,574 7,493 18,680 76,776 55,046 7,588 442 356 28,746 17,914 4,010 6,153 12 Apr. 30................. 55,607 43,237 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 7,57420,784 80,195 56,188 8,825 414 826 29,577 16,546 4,921 6,217 12 June 25................. 57,109 45,109 4,331 7,669 20,595 82,393 55,700 8,315 404 513 30,782 15,686 4,902 6,230 12 July 30................. 57,645 45,922 4,893 6,830 19,776 82,327 54,066 8,519 369 821 29,732 14,625 5,011 6,241 12 Aug. 27................. 56,571 44,914 4,904 6,753 20,574 81,955 54,538 8,783 373 722 30,490 14,170 5,459 6,275 12 City of Chicago:7’8 1941—Dec. 31................. 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31................. 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947—Dec. 31............. 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1967—Dec. 30................. 12,744 9,223 1 ,574 1 ,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1 ,346 10 1968—Aug. 28................. 13,473 9,381 2,061 2,031 3,033 17,179 12,870 1 ,230 10 149 5,484 5,997 1 ,047 1,365 9 Sept. 25................. 13,334 9,297 2,028 2,009 3,185 17,196 12,760 1 ,223 11 181 5,326 6,019 1 ,218 1,395 9 Oct. 30................. 13,579 9,356 2,222 2,001 3,403 17,666 13,118 1 ,260 12 253 5,456 6,137 1 ,134 1 ,412 9 Nov. 27................. 13,658 9,573 1,990 2,095 3,218 17,571 13,311 1 ,287 10 58 5,676 6,280 953 1,416 9 Dec. 3!................. 14,274 10,286 1 ,863 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 1 ,558 2,214 3,128 17,685 13,144 1 ,246 17 238 5,826 5,817 1,130 I ,431 9 Mar. 26................. 14,146 10,313 1 ,634 2,199 2,768 17,696 12,789 1 ,267 17 92 5,775 5,638 1 ,418 1 ,435 9 Apr. 30................. 14,004 10,218 1 ,592 2,194 2,835 17,635 13,201 1,170 17 615 5,901 5,498 1,319 1,460 9 May 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 June 25................. 13,918 10,422 1 ,350 2,146 3,111 17,852 12,557 1 ,273 17 147 5,919 5,201 1 ,389 1 ,465 9 July 30................. 14,238 10,630 1 ,556 2,052 2,601 17,635 12,042 1 ,192 15 242 5,686 4,907 1 ,354 1 ,455 9 Aug. 27................. 13,832 10,373 1 ,473 F,986 2,698 17,344 11 ,779 1 ,170 19 149 5,630 4,811 1 ,717 1 ,483 9 Other reserve city:718 1941—Dec. 31................. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31................. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31................. 36,040 13,449 20,196 2,39613,066 49,659 46,467 5,627 22 405 28,99011,423 1 2,844 353 1967—Dec. 30................. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—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 Sept. 25................. 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 15,135 20,14223,605 142,930 122,205 8,351 395 2,128 49,85461,477 5,554 10,559 162 Nov. 27................. 115,027 80,382 14,291 20,35425,803 145,322 123,321 8,458 353 799 51,83261,879 6,441 10,572 161 Dec. 31................. 119,006 83,634 15,03620,337 28,136 151 ,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 19,995 23,142 143,969 121,555 8,024 272 2,079 49,54961,631 6,085 10,773 161 Mar. 26................. 116,128 83,534 12,738 19,85623,094 143,928 120,639 7,885 281 1 ,338 49,751 61 ,384 6,763 10,878 161 ft 30................. 117,795 84,932 12,857 20,00625,890 148,544 124,498 8,062 249 3,457 51 ,735 60,995 7,522 10,982 161 28................. 116,902 85,316 11,982 19,60424,557 146,119 121,240 7,882 248 2,219 50,043 60,848 7,81911,014 161 June 25................. 118,265 87,081 11,49419,69024,145 147,332 120,641 7,975 224 2,248 50,435 59,759 8,748 11,083 160 July 30................. 118,838 87,753 11 ,716 19,36924,037 148,510 118,489 8,108 204 1,735 50,33358,109 9,173 1 1 ,194 159 Aug. 27................. 117,449 86,509 11,810 19,130 24,644 147,680 116,983 8,224 204 1 ,633 49,74057,182 10,069 1 1,219 159 Country member banks:7,8 1941—Dec. 31................. 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31................. 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31................. 36,324 10,199 22.857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1967—Dec, 30................. 122,511 74,995 24,689 22,82620,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Aug. 28................. 127,450 79,184 24,01024,25617,956148,626 132,750 2,128 96 1,700 57,685 71,141 891 11,354 5,836 Sept. 25................. 129,187 80,230 24,325 24,632 18,610 151,135 134,961 2,222 96 2,291 58,57871,774 932 11,467 5,827 Oct. 30................. 130,842 80,842 24,75025,260 19,292 153,472137,139 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................. 134,759 83,397 24,99826,36422,664 161,122144,682 2,839 111 1 ,281 66,57873,873 804 11,807 5,796 1969—Jan. 29................. 133,166 81,932 25,09026,144 18,979 155,471 138,314 2,185 102 1 ,766 60,36873,893 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................. 134,526 83,873 23,763 26,890 19,207 157,809 139,211 2,210 102 1,588 59,71775,594 1,445 11,876 5,780 Apr. 30................. 135,514 85,222 23,30726,985 21,063 160,766 141,522 2,240 111 1,829 61 ,57075,772 1 ,780 12,017 5,773 May 28................. 135,802 86,210 22,623 26,96920,071 160,098 140,343 2,157 til 2,127 59,755 76,193 2,045 12,075 5,762 June 25................. 136,772 87,654 2!,99927,11920,332 161,355 141,293 2,213 111 1,962 60,84876,159 2,31912,091 5,757 July 30................. 137,839 88,891 21,797 27,151 19,745 161,929 140,396 2,260 111 1 ,764 60,62275,639 2,607 12,200 5,745 Aug. 27................. 137,561 88,858 21,567 27,136 19,927 161,665 139,763 2,256 111 1 ,542 60,27975,575 2,680 12,257 5,739 For notes see p. A-22. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 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— b c C a a l n a ll s k d s a a o t n e f d Total Lo 1 a . n 2 s G U o S .S v e t . c . urit O ie t s h 2 er as C s a e s ts h 3 c c b o T a i a u l a l o i p i n a t n c t i i d ­ e a t ­ t a s s l l 4 Total3 m I D n a e t n e ­ d rba T n i k m 3 e U.S D . e ma O O n t t d h h e e r r Ti 1 m .5 e r B in o 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. Insured commercial: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,554 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88.912 7,131 34,292 157,544 147,775 13,883 23,740 80,27629,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1965—Dec. 31.. 303,593 200,109 59,12044,364 60,327 374,051 330,323 18,149 923 5,508 159,659 140,084 4,325 29,827 13,540 1967—Dec. 30.. 358,536235,502 62,09460,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—June 29.. 365,955 243,993 58,18963,772 74,686 454,398 392,801 20,337 1,019 4,951 176,569 189,926 7,913 35,269 13,512 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 National member: 1941—Dec. 31.. 27.571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,114 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1965—Dec. 3(.. 176,605 (18,537 32,34725,720 36,880 219,744 193,860 12,064 458 3,284 92,53385,522 2,627 17,434 4,815 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634 263,375 231 ,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—June 29.. 212,344143,802 31,627 36,915 44,788 265,497 229,028 12,383 561 2,821 102,093 111,170 5,09720,503 4,742 1968—Dec. 31.. 236,130 159,257 35,30041,572 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 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 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,73! 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 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—June 29.. 86,231 60,159 11,734 14,338 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 1.29 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 15,146 11,629 8,403 74,328 67,107 786 89 588 31,00434,640 162 5,830 7,440 1968—June 29.. 67,390 40,033 14,836 12,521 7,557 76,561 68,866 693 85 824 30,09937,164 230 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 1,872 329 1,291 253 13 329 852 1945—Dec. 31.. 2,2H 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 31 6. 2,009 474 1,280 255 576 2,643 2,25! 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 t ,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 28,649 26,495 238 5,345 7,583 1967—Dec. 30.. 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1 ,071 147 603 32,085 35,372 408 6,286 7,651 1968—June 29.. 70,219 41,853 15,242 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 70 ( 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 n SEPTEMBER 1969 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets—- Securities Total Interbank 3 Other Total Num­ b c C a a l n a ll s k d s a a o n te f d Total Lo t a » n 2 s G U o .S v . t. Oth 2 er as C s a e s ts h 3 c c b o a i a u l a l i p i n n a t c i i d t e t ­ ­ s a s l 4 Total 3 m D a e n ­ d Time U.S D . e mand T 1 im ,5 e B r in o o g w r s ­ ­ c c o a a u p c n i ­ ta ts l b b a o e n f r k s Other Govt. Insured mutual savings: 1941—Dec. 31.. 1,693 642 629 421 151 1,958 1,789 1,789 164 52 1 1 9 9 4 4 5 7 — — D De e c c . . 3 3 1 1 . . . . 1 1 0 2, , 6 8 8 4 3 6 3 3. , 0 5 8 6 1 0 7 8 , , 1 16 6 5 0 6 9 0 5 6 8 4 67 2 5 9 1 1 3 1 , , 4 4 9 2 9 4 1 1 0 2 , , 3 2 6 0 3 7 ......... i 2 12 12 1 1 0 2 , , 3 1 5 9 1 2 1 ..... 1 1. , ,. 0 2.. 3 5 4 2 1 1 9 9 2 4 1965—Dec. 31.. 48,735 39,964 3,760 5,010 904 50,500 45,887 ......... t 7 35945,520 91 3,957 329 1967—Dec. 30.. 55,936 45,489 3,111 7,336 881 57,863 52,910 i 6 42952,474 68 4,237 331 1968—June 29.. 58,178 46,813 3,039 8,325 833 60,128 54,991 i 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 6 5,957 1,384 3,813 760 211 6,215 5,556 2 5,553 637 339 1965—Dec. 31.. 7,526 5,325 1 ,710 491 113 7,720 6,874 1 8 6,865 1 706 177 1967—Dec. 30.. 8,295 6,100 1,169 1 ,026 115 8,499 7,584 20 7,563 1 749 170 1968—June 29.. 8,677 6,283 1,166 1,228 126 8,901 7,879 1 41 7,838 762 170 1968—Dec. 31.. 8,817 6,518 964 1 ,335 H3 9,027 8,062 1 21 8,041 2 788 167 t See table "Deposits Accumulated at Commercial Banks for Payment million were reclassified as country banks. Beginning Jan. 4, 1968, a of Personal Loans" and its notes on p. A-23. country bank with deposits of $321 million was reclassified as a reserve 2 Beginning June 30, 1966, loans to farmers directly guaranteed by city bank. Beginning Feb. 29, 1968, a reserve city bank in Chicago with CCC were reclassified as securities, and Export-Import Bank portfolio total deposits of $190 million was reclassified as a country bank. fund participations were reclassified from loans to securities. This reduced “Total loans’’ and increased “Other securities’’ by about $1 billion. Note.—Series revised beginning with data for July 1969 to conform in “Total loans” include Federal funds sold, and beginning with June 1967 content and format with recent substantive changes in official call reports securities purchased under resale agreements, figures for which are included of condition as described in the Bulletin for Aug. 1969, pp. 642-46. in "Federal funds sold, etc.,” for commercial banks on p. A-24. Data are for all commercial and mutual savings banks in the United 3 Reciprocal balances excluded beginning with 1942. States (including Alaska and Hawaii, beginning with 1959). For definition * Includes other assets and liabilities not shown separately. of “commercial banks” as used in this table, and for other banks that are 5 Figures for mutual savings banks include relatively small amounts included under member banks, see Note, p. 643, May 1964 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. r B e u se l r l v e e t c in it . y and country status in 1960-63, see note 6, p. 587, May 1964 pp. F o 87 r 0 r e 7 v 1 is . ions in series before June 30, 1947, see July 1947 Bulletin, 8 Beginning with May 13, 1965, Toledo, Ohio, reserve city banks with total loans and investments of $530 million and total deposits of $576 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ COMMERCIAL BANKS A 23 LOANS AND INVESTMENTS AT COMMERCIAL BANKS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total1,2 Loans',2 Total i,2 Loans1,2 G U o .S vt . . Other2 G U o .S vt . . Other2 1959—Dec. 31.............................................................. 185.9 107.8 57.7 20,5 189.5 110,0 58.9 20.5 I960—Dec, 31.............................................................. 194.5 113.8 59.8 20.8 198,5 116.7 61.0 20.9 1961—Dec. 30.............................................................. 209.6 120.4 65.3 23.9 214.4 123.9 66.6 23.9 1962—Dec 3|.............................................................. 227.9 134.0 64.6 29.2 233.6 137.9 66.4 29.3 1963—Dec. 31.............................................................. 246.2 149.6 61.7 35.0 252.4 153.9 63.4 35.1 1964—bee 31.............................................................. 267.2 167.7 60,7 38.7 273.9 172.1 63.0 38.8 1965 Dec 31.............................................................. 294.4 192.6 57.1 44,8 301.8 197.4 59.5 44.9 1966—Dec 31.............................................................. 310.5 208.2 53,6 48.7 317.9 213.0 56.2 48,8 1967 Dec 30.............................................................. 346.5 225.4 59,7 61.4 354.5 230.5 62.5 61 5 1968 Aug. 28............................................................. 370.4 241.1 63.9 65.5 367.9 240.4 61.5 66.0 Sept 25............................................................. 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 (969—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 70.9 386.8 257.5 57.4 71 .9 385.6 255.7 58 5 71 4 389.9 260.6 57.6 71 .7 390.7 260,8 57.9 72.0 May 28p,.......................................................... 390.8 263.3 56.0 71 .5 388.8 262.2 55.2 71 .4 June 30 •r fold series)....................................... 390.4 263.0 56.0 71 .4 394.3 268.5 53.8 72.0 June 30* (new series)^...................................... 395.2 268.0 56.0 71.2 399.2 273.6 53.9 71.8 July 30?................’......................................... 395,7 268.8 56.6 70,3 395.7 270.7 54,5 70.5 Aug. 27>>............................................................ 395.4 269.2 56.6 69.6 392.6 268.3 54.1 70.1 i Adjusted to exclude interbank loans. without valuation reserves deducted, rather than net of valuation reserves 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated as was done previously. For a description of the revision, see Aug. 1969 for payment of personal loans were deducted as a result of a change in Bulletin, pp. 642-46. Federal Reserve regulations. Beginning June 30, 1966, CCC certificates of interest and Export­ Note.—-For monthly data 1948-68, see Aug. 1968 Bulletin, pp. A-94 Import Bank portfolio fund participation certificates totaling an estimated —A-97. For a description of the seasonally adjusted series see the follow­ $1 billion are included in “Other securities” rather than “Other loans." ing Bulletins: July 1962. pp. 797-802; July 1966, pp. 950-55; and Sept. J Data revised to include all bank premises subsidiaries and other sig­ 1967, pp. 1511-17. nificant majority-owned domestic subsidiaries; earlier data include com­ Data are for last Wed. of month except for June 30 and Dec. 31; data mercial banks only. Also, loans and investments are now reported gross. are partly or wholly estimated except when June 30 and Dec. 31 are call dates. DEPOSITS ACCUMULATED AT COMMERCIAL BANKS FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec, 30, June 29, Dec. 31, Class of Dec. 31, Dec. 30, June 29, Dec. 31, bank 1966 1967 1968 1968 bank 1966 1967 1968 1968 All commercial. ................ 1 ,223 1.283 1,235 1,216 All member—Cont. Insured................................. 1,223 1 ,283 1,235 1,216 Other reserve city........ 370 362 347 332 National member. ........ 729 747 744 730 Country..................... 571 617 598 605 Sfftte member ..................... 212 232 201 207 All 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^hypo theca ted deposits are excluded from “Time deposits" These deposits have not been deducted from “Loans” and “Time de­ and “Loans” at all commercial banks beginning with June 30, 1966, as posits” as shown on pp. A-21 and A-22, or from “Loans” and “Time shown in the tables on the following pages: A-19, A-20, A-26-A-3O deposits, IPC” as shown on pp. A-24 and A-25. (consumer instalment loans), and in the table at the top of this page. 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 □ SEPTEMBER 1969 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans J Investments b c C a a l n a ll k s d s a a o n te d f l i o n T a a v o n n e t d s s a t l i ­ f s u F e o n e r l a d d d l s , - Total C m c o i e a m r l - - A cu g l r - i- o p s i u e r c c c F a u h o r r a r it r s y i e i i n n s g g in f s in ti a t T u n o t c io ia n l s R e e s a - l O i t t n h o - er, Other U.S s . e G cu o r v it e ie rn s m 6 ent S lo a t n c a d a te l Other ments etc.2 3,4 a in n - d a tu l r- 5 b T r o o- tate v d id i- - 5 Bills s g e o c v u t. - ri ties 5 d tr u ia s l ­ k a e n r d s ot T h o e rs BanksOthers uals J Total ce an rt d if i- Notes Bonds ri ties deal­ cates ers Total: 2 1947—Dec. 31.. 1(6,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1965—Dec. 31.. 306,060 2,103 199,55571,437 8,212 5,258 3,231 2,158 13,291 49,30045,4685,21559,547 n.a. n.a. n.a. 38,655 6,201 1967—Dec. 30.. 361,186 4,057 233,18088,443 9,2706,215 3,780 1 ,90212,53558,52551,5855,65962,473 n.a. n.a. n.a.50,006 11,471 1968—June 29..368,795 4,813 241,001 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 6,747259,727 98,3579,718 6,625 4,108 2,20613,72965,137 58,3376,72464,466 n.a. n.a. n.a.58,570 12,967 Al) insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1,314 3,1643,606 49 4,677 2,361 1,13288,912 21,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1965—Dec. 31..303,593 2,064 198,04570,887 8,191 5,088 3,172 2,093 13,148 49,02645,2905,15559,120 13,134 13,23333,85838,4195,945 1967—Dec. 30..358,536 3,919231 ,583 87,8709,2506,017 3,719 1 ,848 12,39458,20951,395 5,60662,094 13,13418,62431,623 49,737 11,204 1968—June 29..365,955 4,655239,33890,8739,9584,723 3,668 1 ,881 12,02961,11254,0205,89358,189 7,003 22,49929,95652,355 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. :3 1.. 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. 3• 1.. 107,183 22,775 8,949 855 3,1333,378 47 3,455 1 ,900 1,057 78,338 19,260 14,271 44,807 3,2542,815 1947—Dec. :31.. 97,846 ...... 32,628 16,962 1,046 811 1 ,065 113 7,130 4,662 83957,914 7,803 4,815 45,295 4,1993,105 1965—Dec. 31. 251,577 1,861 167,93963,9795,0994,9152,714 2,008 12,475 38,988 36,418 4,83244,992 9,441 10,10626,36732,588 4,198 1967—Dec. 30. 294,098 3,438194,38979,3445,7025,8203,099 I ,754 11,58745,52840,4545,19046,956 9,633 13,657 24,61441,5207,795 1968—June 29..298,575 4,041 199,92081,9226,081 4,5253,057 1 ,778 11,25947,69742,291 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 2,012 12,797 50,461 45,4046,18947,881 n.a. n.a. n.a.48,423 8,498 h/ew York City: 1941—Dec. 31.. 12,896 4,072 2,807 8 412 169 32 123 5i2 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 27217,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 .......... 7,179 5,361 545 267 93 111 564 23811,972 1 ,642 558 9,772 638 604 1965—Dec. 31,. 44,763 412 32,713 18,075 202,866 665 1,010 3,471 3,139 2,928 1 .340 5,203 1,538 987 2,876 5,879 556 1967—Dec. 30.. 52,141 415 38,64423,183 13 3,874 831 914 2,990 3,431 3,099 1 ,285 6,027 1 ,897 1 ,962 2,303 6,318 737 1968—June 29.. 51,361 556 38,98824,042 192,976 796 1 ,015 3,118 3,495 3,197 1,309 5,046 847 1 ,860 2,555 6,034 736 1968—Dec. 31.. 57,047 747 42,22225,258 17 3,803 903 1 ,099 3,426 3,619 3,485 1 ,694 5,984 n.a. n.a. n.a. 7,233 861 City oj Chicago: 1941—Dec. 31 2,760 954 732 6 48 52 1 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31. 5,088 ...... 1,801 1.418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 1965—Dec. 31.. 11,455 72 8,147 4,642 32 444 244 188 1,201 577 762 316 1,700 542 273 961 1,400 137 (967—Dec. 30.. 12,744 266 8,958 5,714 46 459 220 162 951 675 754 241 1 ,574 427 344 853 1,487 459 1968—June 29.. 12,848 192 9,056 5,796 39 355 220 173 1 ,046 693 748 236 1,762 413 508 899 1,564 274 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. I ,810 315 7 ther reser re city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1.508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 38729,552 8,016 5,653 15,883 1.126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 2,731 1,901 15,563 1,342 1 ,053 1965—Dec. 31.. 91,997 471 64,64624,784 1,206 954 1,108 635 5,820 15,05614,305 1,99914,354 2,972 3,281 8,432 11,504 1,022 1967—Dec. 30.. 106,086 1,219 72,71330,609 1,31! 881 1,143 578 5,446 16,969 15,047 2,14814,667 3,140 3,557 8,312 15,3762,110 1968—June 29.. 108,001 1,422 75,13831,720 1,414 758 1 ,206 513 5,196 17,861 15,625 2,30413,083 966 4,329 8,105 16,1772,180 1968—Dec. 31.. 119,339 2,197 81,769 34,632 1.362 1,116I ,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 1,528 4,377 110 481 3,787 1,222 1 ,028 1945—Dec. 31.. 35,002 5,596 I ,484 648 42 471 4 1,881 707 35926,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 ...... 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1965—Dec. 31.. 103,362 905 62,433 16,478 3,840 650 698 174 1,98320,217 18,423 1,17723,735 4,389 5,565 14,098 13,8052,483 1967—Dec. 30.. 123,127 1 ,538 74,074 19,8394,332 607 906 100 2,20024,45321 ,5541 ,51624,689 4,168 7,793 13,147 18,3384,488 1968—June 29.. 126,365 1,871 76,738 20,363 4,610 436 835 77 1 ,89925,64722,721 1,61423,469 2,188 9,597 12,06219,6074,680 1968—Dec. 31.. 135,364 2,295 81,70621,811 4,493 720 969 119 2,14727,16424,154 1,69424,998 n.a. n.a. n.a.21,269 5,095 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 38314,555 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 44,05610,538 3,797 451 729 194 932 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 (i.e., 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. s Beginning with June 30, 1966, Ioans to farmers directly guaranteed 2 Includes securities purchased under resale agreements.'Prior to June 30, by CCC were reclassified as “Other securities,” and Export-Import Bank 1967, they were included in loans-for the most part in “Loans to banks.” portfolio fund participations were reclassified from loans to “Other se­ Prior to Dec. 1965, Federal funds sold were included with “Total Joans” curities.” This increased “Other securities” by about Si billion. and “Loans to banks.” 6 Beginning with Dec. 31, 1965, components shown at par rather than J See table (and notes) entitled Deposits Accumulated at Commercial at book value; they do not add to the total (shown at book value) and are Banks for Payment of Personal Laans, 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

SEPTEMBER 1969 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (la 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 F w e R a r . i n v R e th e k ­ . s s r C c e a o n u n i c d n r y ­ b m a a w B d n e n c o i a s t k e h ­ l t s ­ s i c 7 ju p m s D o d a a t s e d e e n i ­ ­ d t ­ d s 8 D In o t ­ erban F k or­ G u o v s t . . S lo a t n c a a d te l C c o f a i e e e n f r f r d d s i t ­ i ’ ­ 1PC I b n a t n e k r­ G P U a o o n . s S v d t t . a , l S lo a t n c a a d te l IPO B r in o o g w r s ­ ­ c C o a t a u a c p n l ­ i t ­ s mestic7 eign^ govt. checks, Sav­ govt. etc. ings Total: 3 1947—Dec. 31 ... . 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 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 12,186 134,2474,472 30,272 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 15,892 167,6345,777 34,384 1968—June 29.. 20,846 5,190 15,494 147,296 18,632 2,005 4,971 16,284 10,123 151,430 1 ,094 321 16,522 173,8578,13035,774 1968—Dec. 31.. .. 21,230 7,(95 18,910 167,145 22,501 2,245 5,010 16,876 9,684 173,341 1 ,211 368 19,110 184,8928.89937*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 ... . 13,810 1,829 11,075 74,722 12,566 1 ,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31... . 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33.946 6! 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 16,997 151,948 19,688 I ,909 5,219 15,471 8,608 158,905 1 ,258 267 15,836 166,9565.531 33,916 1968—June 29.... 20,846 5,170 14,936145,782 18,468 1 ,869 4,951 16,198 9,890 150,482 1 ,019 321 16,456 173,1487,913 35,269 1968—Dec. 31... . 21,230 7,165 18,343 165,527 22,310 2,117 5,000 16,774 9,442 172,319 I ,155 368 19,057 184,1788,675 36,530 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 I ,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31... . 17,797 1,672 6.270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1965—Dec. 31 . ... 17,992 3,757 8,957 112,569 15,977 1,477 4,890 10,840 5,386 115,905 840 236 10,041 109,925 4,23424,926 1967—Dec. 30.... 20,275 4,646 10,550 121,530 18,951 1 ,861 4,631 11,857 7,940 132,184 1,169 235 12,856 135,329 5,37028,098 1968—June 29.... 20,846 3,999 9,218 116,269 17,809 1 ,834 4,127 12,503 9,251 124,716 934 286 13,373 139,1027,68429,139 1968—Dec. 31.... 21,230 5,634 11,279 131,491 21,483 2,036 4,309 12,851 8,592 142,476 1 ,061 330 15,668 147,5458,45830^060 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 Hl 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 4,19! 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 18,840 1,880 5,715 1968—June 29.... 5,013 305 558 18,223 6,709 1,326 824 1,203 6,043 23,879 513 89 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 f,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 8H 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 6H 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 8,09! 330 1,773 3,532 1,180 42,380 206 71 4,960 40,5101,548 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 4,239 10,684 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 I! 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 HI 86 6,043 68,348 804 11,807 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 (68 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.... ....I..'.,.5..6.0. 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 arc included under member banks, see Note, p. 589, May 1964 8 Through I960 demand deposits other than interbank and U.S. Bulletin.) These figures exclude data for banks in U.S. possessions Govt., less cash items in process of collection; beginning with 1961, except for member banks. Comparability of figures for classes of banks demand deposits other than domestic commercial interbank and U.S. is affected somewhat by changes in F.R. membership, deposit insurance Govt., less cash items in process of collection, status, and the reserve classifications of cities and individual banks, and * For reclassification of certain deposits in 1961, see note 6, p. 589, by mergers, etc. May 1964 Bulletin. Data for national banks for Dec. 31, 1965, have been adjusted to make them comparable with State bank data. Note.—Data are for all commercial banks in the United States. (For For other notes see opposite page. definition of‘‘commercial banks’* as used in this table and for other banks Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ SEPTEMBER 1969 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (tn millions of dollars) Loans Federal funds sold, etc.’ Other To brokers For purchasing and dealers or carrying securities T lo o a t n a s l involving— To f n in o a n n b . a nk Wednesday in a v n e d s t­ To C m o e m r­ ­ T an o d b d r e o a k l e e r r s s ot T h o er s institutions ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers, banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. cos., etc. Large banks— Total J 968" 215,833 153,416 68,814 2,048 1,363 4,550 98 2,442 5,724 4,697 2 14............. 216,481 153,642 68,610 2,047 1,619 4,387 101 2,474 5,639 4,696 21 , 217,191 153,369 68,469 2,038 1,635 4,440 107 2,473 5,441 4,685 28............... 216,975 152,846 68,008 2,023 1,764 4,392 (08 2,487 5,107 4,682 1969 236,417 5,433 5,232 43 140 18 170,816 78,590 2,089 866 3,836 106 2,755 6,256 5,671 ' 9............... 234,395 5,494 4,829 550 76 39 169,409 78,481 2,107 676 3,429 104 2,758 6,042 5,489 16. . 231,944 4,530 4,408 20 75 27 168,420 78,339 2,117 408 3,151 105 2,753 5,771 5,439 23............... 234,021 5,279 5,084 142 37 16 168,279 77,956 2,115 1,124 3,182 103 2,727 5,663 5,464 30............... 233,885 5,901 5,283 567 33 18 167,903 77,607 2,101 1 ,263 3,199 106 2,701 5,489 5,478 232,412 5,380 5,194 107 49 30 167,394 77,581 2,095 462 3,296 103 2,693 5,780 5,472 ~ 13............... 231,413 5,502 5,116 315 50 21 166,605 77,276 2,099 538 3,064 102 2,683 5,491 5,469 20............... 229,682 5,441 5,189 156 61 35 165,967 77,057 2,083 465 3,016 103 2,681 5,400 5,489 27*............. 230,580 5,640 5,521 67 49 3 165,454 76,652 2,082 397 2,976 107 2,661 5,404 5,420 New York City 1968” 6 14............... 5 4 0 9 , , 4 7 0 2 6 4 3 3 8 7 , , 5 6 5 7 1 3 2 2 3 3, , 0 0 9 0 3 2 1 1 5 5 5 6 7 1 1 6 3 2, , 7 0 0 0 1 0 1 1 5 5 7 8 9 1 5 3 1 1 , , 6 6 6 1 2 2 1 1 , , 2 2 1 0 3 7 21............... 50,260 37,992 22,962 15 883 2,753 20 813 1 ,503 1 ,221 28................ 50,129 37,687 22,832 15 876 2,722 17 824 t ,401 1 ,221 1969 July 2......... 55,039 1,721 1,709 5 7 42,653 25,602 13 673 2,412 13 867 1 ,894 1 ,442 ' 9............... 53,968 1 ,397 1,396 1 42,063 25,675 13 552 2,058 11 867 I ,847 1,365 16............... 53,470 1,673 1 ,663 10 41 ,580 25,626 13 341 1,872 11 863 1 ,719 1,352 23............... 54,438 1,697 1,693 4 41,885 25,520 13 1 ,024 1 ,936 11 854 1,676 1,340 30............... 54,370 1,626 1 ,619 7 42,036 25,474 13 1,189 2,022 (0 842 1 ,670 I ,351 53,602 J ,658 1 ,641 10 7 41,455 25,493 10 376 2,074 . 10 842 1 ,817 1 ,352 ~ 13. ....... . 53,287 1,951 1,939 12 41,023 25,354 11 43.4 1 ,862 10 836 1 ,738 1 ,338 20.......... 52,728 2,081 2,004 63 14 40,592 25,250 1 1 378 1 ,793 10 836 1 ,655 1 ,341 27*............. 53,293 2,088 2,088 40,463 25,105 (I 319 1 ,811 15 825 1 ,673 1 ,359 Outside New York City 1968” 165,427 114,865 45,721 2,033 792 1 ,550 83 I ,647 4,062 3,490 ~ 14............... 166,757 115,969 45,608 2,032 1 ,003 1 ,686 86 1 ,661 4,027 3,483 21............... 166,931 115,377 45,507 2,023 752 1,687 87 1,660 3,938 3,464 28......... 166,846 115,159 45,176 2,008 888 1 ,670 91 1 ,663 3,706 3,461 1969 July 2............... 181,378 3,712 3,523 38 140 11 128,163 52,988 2,076 (93 1,424 93 1,888 4,362 4,229 ' 9.. 180,427 4,097 3,433 550 76 38 127,346 52,806 2,094 124 1,371 93 1,891 4,195 4,124 16............... 178,474 2,857 2,745 20 75 17 126,840 52,713 2,104 67 1 ,279 94 1 ,890 4,052 4,087 23............... 179,583 3,582 3,391 138 37 16 126,394 52,436 2,102 100 1 ,246 92 1 ,873 3,987 4,124 30............... (79,515 4,275 3,664 567 33 11 125,867 52,133 2,088 74 1,177 96 1,859 3,819 4,127 178,810 3,722 3,553 97 49 23 125,939 52,088 2,085 86 1 ,222 93 1,851 3,963 4,120 13............... 178,126 3,551 3,177 315 50 9 125,582 51,922 2,088 104 1 ,202 92 1,847 3,753 4,131 20 176,954 3,360 3,185 93 61 21 125,375 51,807 2,072 87 1,223 93 1,845 3,745 4,(48 27*............. 177,287 3,552 3,433 67 49 3 124,991 51,547 2,071 78 1,165 92 1,836 3,731 4,061 For notes see p. A-30. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (tn millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts, 2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1968 H 30,609 4,005 1 ,389 17,590 1 ,079 12,243 26,845 3,528 5,103 12,110 6,104 30,732 4,198 1 ,397 17,619 1 ,076 12,282 26,985 3,536 5,206 12,080 6,163 ................................. " .14 30,811 4,064 1 ,399 17,665 1 ,064 12,316 27,694 3,326 4,844 12,252 7,272 ................................................21 30,866 4,23! 1 ,404 17,741 1 ,082 12,189 27,781 3,380 4,851 12,234 7,316 ............... 28 1969 33,252 549 1,726 19,717 1 ,023 14,380 22,820 I ,438 4,188 12,153 5,041 33,249 400 1,766 19,714 1 ,022 14,172 22,501 I ,202 4,149 12,130 5,020 ...........................................J , 9 33,252 374 1 ,810 19,718 J ,017 14,166 22,164 981 4,189 12,039 4,955 ................................................16 33,269 437 1,724 19,751 1 ,010 13,754 23,836 2,650 4,157 12,086 4,943 ........... 23 33,303 477 1 ,667 19,834 1 ,013 13,665 23,468 2,330 4,186 12,019 4,933 .......................... 30 33,279 468 1 ,597 19,856 1 ,033 13,679 23,146 2,067 4,175 12,024 4,880 33,398 404 I ,604 19,919 1 ,028 13,530 22,916 1 ,908 4,114 12,004 4,890 ..................................... 13 33,440 388 1 ,566 19,924 1 ,028 13,327 22,253 1 ,359 4,139 12,783 3,972 .................................. 20 33,500 421 1 ,553 19,904 1 ,095 13,282 23,307 2,341 4,337 12,758 3,871 .................. 27 p New York City 1968 3,087 1 ,200 715 I ,334 707 2,092 5,105 1,220 911 1 ,520 1 ,454 3,100 625 745 1 ,327 705 2,126 5,262 1,319 931 1 ,554 1 ,458 ....................................... " . 14 3,104 774 718 1,334 698 2,140 5,393 1,263 856 1 ,601 1 ,673 ................................................21 3,108 807 713 1,321 721 2,055 5,436 1,311 832 1 ,589 1 ,704 ................................ .28 1969 3,530 200 912 1 ,561 680 2,854 4,075 432 507 2,089 1 ,047 ......................................July 2 3,543 147 929 1 ,564 682 2,810 4,066 426 502 2,101 1 ,037 .......................... . " 9 3,535 152 961 1 ,561 681 2,893 3,871 309 467 2,083 1 ,012 ................................................16 3,541 176 891 1 ,566 661 2,676 4,690 1,132 461 2,083 1 ,014 ................................................23 3,542 204 857 1 ,570 675 2,617 4,574 1,008 467 2,094 1 ,005 ........................................... 30 3,566 186 795 1 ,573 667 2,694 4,327 811 449 2,084 983 3,591 156 817 1 ,576 672 2,628 4,200 677 466 2,079 978 ...........................................~ . 13 3,604 156 791 1 ,586 660 2,521 4,007 510 442 2,345 710 ................................................20 3,593 178 777 1 ,595 709 2,493 4,633 1,130 463 2,337 703 ...............................................27 p Outside New York City I968H 27,522 2,805 674 16,256 372 10,151 21,740 2,308 4,192 10,590 4,650 27,632 3,573 652 16,292 371 10,156 21,723 2,217 4,275 10,526 4,705 ...........................................".14 27,707 3,290 681 16,331 366 10,176 22,301 2,063 3,988 10,651 5,599 ...................... 21 27,758 3,424 '691 16,420 361 10,134 22,345 2,069 4,019 10,645 5,612 ................................................28 1969 29,722 349 814 18,156 343 11 ,526 18,745 1 ,006 3,681 10,064 3,994 ......................................July 2 29,706 253 837 18,150 340 11,362 18,435 776 3,647 10,029 3,983 ................................................19 29,717 222 849 18,157 336 11,273 18,293 672 3,722 9,956 3,943 ................................................16 29,728 26l 833 18,185 349 11,078 19,(46 1 ,518 3,696 10,003 3,929 ..............................................23 29,761 273 810 18,264 338 11,048 18,894 1,322 3,719 9,925 3,928 ..............................................30 29,713 282 802 18,283 366 10,985 18,819 1,256 3,726 9,940 3,897 29,807 248 787 18,343 356 10,902 18,716 1 ,231 3,648 9,925 3,912 ................................................13 29,836 232 775 18,338 368 10,806 18,246 849 3,697 10,438 3,262 ................................................20 29,907 243 776 18,309 386 10,789 18,674 1,211 3,874 10,421 3,168 ...............................................27 p For notes see p. A-30. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ SEPTEMBER 1969 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp, stock, in serves Cur­ ances in sub­ assets/ Wednesday and an^. process with rency with sidiar­ Other Total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Cert if. war­ All of All rants3 other partici­ other 5 pation4 Large banks— Total 1968U 35,572 4,376 26,997 1 ,342 2,857 23,500 17,049 2,628 4,362 9,707 273,280 14 ................. .. 35'854 4,452 27,058 1 ,420 2,924 25,243 16,352 2,844 4,319 9,686 275'129 21........................................ 36’128 4,592 27,227 1 ,410 2^899 23,070 16,483 2,'824 4^25 9,427 273 ’525 36^348 4; 664 27,436 1 ,'395 2,853 23,521 16,153 2^73 4,110 9 ,'598 273,531 1969 tiilv 2. 37,348 4,362 29,129 1,165 2,692 34,944 15,260 2,895 5,219 442 12,581 307,758 ' 9....................................... 36,991 4,200 29,090 1,141 2,560 33,594 15,132 2,976 4,774 469 12'477 303 817 16........................................ 36,830 4,135 28,981 1,144 2,570 35,246 17,848 3,019 4,995 454 12,398 305904 23....................................... 36,627 4,040 28,933 1,137 2,517 30,196 15,637 3,040 4,949 455 12,352 300,650 30...................................... 36313 3 '989 28,934 1 ’ 141 2,549 29,510 14,741 3'106 5,018 470 12'538 299 268 36,492 4,013 28,811 1,142 2,526 30,596 16,944 2,795 4,603 472 12,700 300,522 ~ 13....................................... 36,390 3,851 28,835 1 ,172 2^532 29,157 15,084 3,046 4,851 473 12,501 296 525 20....................................... 36321 3,728 28,717 1 J35 2,441 29,900 16329 3^003 4337 494 12305 296*250 27p 36,179 3,721 28,826 l’102 2,530 30,004 16,931 3 J 24 4*236 496 12397 297 768 New York City 196811 6,750 1 ,234 4,675 80 761 10,353 3,847 341 285 3 392 68 624 " 14..................... 6389 1,231 4^651 121 786 10,797 4^589 342 318 3,422 69*192 21...................................... 6,875 1 '305 4’,700 113 757 9,854 3,959 348 348 3’332 68 101 .................. . . 7^006 1'334 4^825 115 732 11,018 4,204 359 294 3,422 69 326 1969 Tnlv 2. 6,590 1,150 4,739 109 592 17,107 3,769 383 397 257 4 759 81 711 ' 9.................................. 6’442 1 J 11 4,671 109 551 16,614 3,813 385 330 257 4 686 80 *053 16...................................... 6'346 1 '076 4’635 109 526 17,230 4,'769 362 356 257 4,’526 80 *970 23................. . . 6 166 956 4 606 108 496 15'138 3*829 370 284 258 4 512 78 829 30........................................ 6,134 937 4’,588 108 501 14’806 3,771 379 350 258 4552 78*486 6,162 985 4,541 106 530 14,978 4,504 368 405 258 4,624 78 739 13.................................... 6’113 931 4’544 108 530 13'413 3'806 381 345 258 4 496 75 986 20.................................... 6,048 900 4,534 107 507 14,500 4,234 365 308 258 4*408 76*801 27” 6,109 909 4,561 105 534 14^908 4^526 367 280 258 4370 78,102 Outside New York City 196811 28,822 3,142 22,322 1,262 2,096 13,147 13,202 2,287 4,077 6,315 204,656 14.................................. 29^065 3’221 22’407 1 ’299 2'138 14’446 11,763 2,502 4’001 6,264 205 937 21................... . . 29,253 3’287 22’527 1 297 2,142 13,216 12’524 2’476 3’977 6 095 205 424 ................. 29,342 3,330 22,611 1 ’,280 2’121 12,503 11 349 2,614 3,816 6,176 204,105 1969 Julv 2. 30,758 3,212 24,390 1 ,056 2,100 17,837 11,491 2,512 4,822 185 7,822 226,047 9........................................ 30'549 3,089 24’419 1 332 2,009 16^980 HJ19 2,591 4344 212 7'791 223,764 (6....................................... 30,484 3,059 24,346 I ’.035 2'044 18,016 13,079 2,657 4’639 197 7,872 224*934 23........................................ 30361 3’,084 24,327 I ,029 2^021 15,058 11,808 2,670 4’665 197 7 340 221'821 30........................................ 30,479 3,052 24346 1 ’033 2,048 14'704 10,970 2,727 4'668 212 7,986 220'782 30,330 3,028 24,270 1 ,036 1,996 15,618 12,440 2,427 4,198 214 8,076 221 783 13........................................ 30'277 2,920 24,291 1 064 2,002 15,744 11,278 2’665 4’506 215 8,005 220’539 20....................................... 29,973 2’828 24'183 1 028 1 934 15'400 12,'195 2,’638 4,129 236 7.’897 219449 27^...................................... 30;070 2,812 24,265 ’997 1 ,996 15,096 12,405 2357 3,956 238 7,927 219,666 For notes see p. A-30. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (tn millions of dollars) Deposits Demand Time and savings’ Domestic interbank Foreign I PC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total I PC ical U.S. and Total ical . tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc.1 cial checks ings sions banks Large banks— Total 1968“ 118,470 84,019 5,775 4,205 14,867 672 702 1,718 6,512 107,156 48,288 42,457 10,547 817 4,547 ................Aug. 7 118,877 86,384 5,671 2,885 14,831 618 639 1 ,710 6,139 107,609 48,283 42,643 10,737 852 4,586 .........................14 117,473 84,544 5,345 4,342 14,402 602 658 1 ,638 5,942 108,047 48,296 42,897 10,874 871 4,576 .........................21 117,004 84,929 5,516 3,055 13,635 579 725 1 ,638 6,927 108,259 48,269 43,042 10,969 880 4,567 .........................28 1969 135,809 93,690 6,628 3,618 18,999 843 769 2,083 9,179 103,111 47,512 40,916 9,354 468 4,401 ................July 2 129,818 91,284 5,926 2,547 17,351 891 726 2,179 8,914 102,388 47,404 40,548 9,206 446 4,334 ........................ 9 131,340 93,521 5,867 2,041 17,273 747 724 2,063 9,104 101,668 47,219 40,300 8,951 443 4,313 .........................16 129,271 90,203 5,597 5,234 16,187 673 689 1 ,987 8,701 101,065 47,106 39,975 8,861 440 4,250 .........................23 127,152 90,094 6,233 3,382 16,125 629 719 2,005 7,965 100,602 46,953 39,740 8,773 435 4,278 .........................30 128,942 88,783 6,121 3,381 17,600 729 670 1 ,980 9,678 100,194 46,915 39,373 8,717 433 4,345 ................Aug. 6 127,200 90,362 5,832 2,042 16,952 649 760 2,056 8,547 99,681 46,820 39,134 8,528 427 4,371 .........................13 126,265 88,819 5,441 2,728 17,394 637 738 2,001 8,507 99,264 46,780 38,914 8,365 433 4,372 .........................20 127,090 88,699 5,859 3,209 16,660 642 750 1 ,843 9,428 99,030 46,710 38,721 8,304 434 4,467 .........................27p New York City 1968’i 32,930 19,959 349 1 ,088 4,986 372 541 1 ,218 4,417 18,249 4,590 9,019 1,122 467 2,822 ................Aug. 7 32,315 20,125 434 605 4,972 346 478 1 ,177 4,178 18,345 4,589 9,026 1 ,163 500 2,831 .........................14 31,894 19,815 333 1 ,068 4,682 334 499 1,108 4,055 18,406 4,584 9,080 1 ,168 514 2,821 .........................21 32,733 20,074 437 703 4,456 318 573 1,118 5,054 18,411 4,577 9,089 t ,182 518 2,813 .........................28 1969 41,668 23,159 608 921 7,825 531 615 1 ,516 6,493 14,090 4,537 5,862 503 265 2,737 ................July 2 38,342 21,618 465 506 6,769 573 566 1 ,587 6,258 13,878 4,526 5,697 521 250 2,701 ........................ 9 39,246 22,239 517 483 6,906 436 567 1 ,484 6,614 13,730 4,496 5,620 510 250 2,673 ..........................16 38,555 21,417 449 1 ,367 6,628 386 531 1 ,407 6,370 13,515 4,485 5,520 481 251 2,605 .........................23 37,858 21,808 451 795 6,670 350 611 1,418 5,755 13,458 4,465 5,471 479 251 2,623 .........................30 38,844 21,090 500 718 6,886 434 518 1,394 7,304 13,337 4,457 5,344 450 254 2,666 ................Aug. 6 37,325 21,130 477 289 6,629 371 591 1 ,469 6,369 13,217 4,451 5,225 435 253 2,682 .........................13 37,895 21,037 426 559 7,275 374 572 1 ,408 6,244 13,088 4,447 5,116 424 252 2,680 .........................20 38,756 21,018 534 662 7,063 393 592 1 ,250 7,244 13,056 4,431 5,027 415 253 2,762 .........................27- Outside New York City 1968 “ 85,540 64,060 5,426 3,117 9,881 300 161 500 2,095 88,907 43,698 33,438 9,425 350 1 ,725 ...............Aug. 7 86,562 66,259 5,237 2,280 9,859 272 161 533 1 ,961 89,264 43,694 33,617 9,574 352 1 ,755 .........................14 85,579 64,729 5,012 3,274 9,720 268 159 530 1 ,887 89,641 43,712 33,817 9,706 357 1 ,755 .........................21 84,271 64,855 5,079 2,352 9,179 261 152 520 1 ,873 89,848 43,692 33,953 9,787 362 1 ,754 .........................28 1969 94,141 70,531 6,020 2,697 11,174 312 154 567 2,686 89,021 42,975 35,054 8,851 203 1,664 ................July 2 91,476 69,666 5,461 2,041 10,582 318 160 592 2,656 88,510 42,878 34,851 8,685 196 1 ,633 ...........................9 92,094 71,282 5,350 1 ,558 10,367 311 157 579 2,490 87,938 42,723 34,680 8,441 193 1 ,640 .........................16 90,716 68,786 5,148 3,867 9,559 287 158 580 2,331 87,550 42,621 34,455 8,380 189 1 ,645 .........................23 89,294 68,286 5,782 2,587 9,455 279 108 587 2,210 87,144 42,488 34,269 8,294 184 1,655 .........................30 90,098 67,693 5,621 2,663 10,714 295 152 586 2,374 86,857 42,458 34,029 8,267 179 1,679 ................Aug. 6 89,875 69,232 5,355 1 ,753 10,323 278 169 587 2,178 86,464 42,369 33,909 8,093 174 1 ,689 .........................13 88,370 67,782 5,015 2,169 10,119 263 166 593 2,263 86,176 42,333 33,798 7,941 181 1,692 .........................20 88,334 67,681 5,325 2,547 9,597 249 158 593 2,184 85,974 42,279 33,694 7,889 181 1 ,705 .........................27» For notes see p. A-30. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ SEPTEMBER 1969 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits50 ties of pur­ F.R. ties, Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.7 Loans ities counts (gross) ments deposits to. etc.6 ad­ (gross) ad­ Issued Issued their justed 8 ad­ justed 8 Total to to foreign justed ® IPC’s others bran­ ches Large banks—■ Total I968H Aug. 7. 397 9,760 16,027 3,235 21,470 149,411 211,828 75,898 21,915 14,068 7,847 6,634 14. 186 10,777 16,244 3,235 21,436 149,444 212,283 75,918 22,161 14,190 7,971 6,842 21 . 334 9,978 16,270 3,238 21,423 149,305 213,127 75,659 22,231 14,263 7,968 $.941 28. 428 9,867 16,523 3,238 ....2..1..,.4..50 148,615 212,744 76,793 22,288 14,259 8,029 7,004 1969 July 2. 12,871 289 2,763 26,482 3,548 124 22,761 170,468 230,636 78,248 14,746 8,866 5,880 12,776 9. 14,079 439 2,825 27,814 3,562 122 22,770 169,674 229,166 76,326 14,371 8,608 5,763 13,719 16. 13,547 1 ,795 2,810 28,352 3,562 124 22,706 168,168 227,162 76,780 13,904 8,272 5,632 14,162 23. 12,542 647 2,850 27,883 3,561 127 22,704 168,036 228,501 77,654 13,771 8,134 5,637 14,241 30. 13,422 687 2,878 28,076 3,562 127 22,762 168,004 228,125 78,135 13,538 7,909 5,629 14,324 Aug. 6 15,350 814 2,746 25,872 3,569 127 22,908 167,112 226,750 77,363 13,279 7,675 5,604 14,077 13. 14,176 150 2,937 25,775 3,562 119 22,925 166,587 225,893 77,049 13,149 7,562 5,587 14,209 20. 14,039 855 2,962 26,324 3,560 124 22,857 165,931 224,105 76,243 12,846 7,328 5,518 14,672 27v 15,177 1,132 2,627 26,183 3,571 113 22,845 165,162 224,638 77,217 12,675 7,242 5,433 14,551 Outside New York City 1968H Aug. 7. Bl 3,218 8,235 942 5,8611 37,351 49,206 16,503 6,533 4,414 2,119 4,906 14. 15 4,317 8,341 942 5 ,859 37,048 49,099 15,941 6,586 4,432 2,154 5,075 21 . 116 3,380 8,458 946 5,847 37,218 49,486 16,290 6,538 4,406 2,132 5,234 28. 3 3,817 8,626 946 ............ 5,836 36,880 49,322 16,556 6,530 4,405 2,125 5,233 1969 July 2. 3,117 659 15,100 I ,050 3 6,024 42,453 53,130 15,815 2,610 1 ,347 1,263 8,910 9. 4,060 ,5 702 5,999 1 ,051 3 6,013 41,917 52,425 14,453 2,511 1,273 1 ,238 9,583 16. 3,822 151 748 16,215 I ,050 3 6,005 41,438 51,655 14,627 2,453 1 ,210 1,243 10,032 23. 3,075 11 704 15,926 1 ,050 3 5,990 41,713 52,569 15,422 2,390 1,158 1 ,232 9,927 30. .......................... 3,782 ........... 685 15,667 1 ,049 3 5,984 41 ,829 52,547 15,587 2,388 1,123 1,265 9,765 Aug. 6. 4,840 12 663 13,938 1,049 3 6,053 41,286 51,775 16,262 2,343 1,072 1,271 9,828 13. 3,803 644 13,901 1 ,049 3 6,044 40,879 51,192 16,994 2,345 1 ,045 1 ,300 9,876 20. 3,786 ISO 628 14,165 1,049 3 6,037 40,513 50,568 15,561 2,259 974 I ,285 10,148 27* 4,065 291 536 14,324 1 ,049 3 6,022 40,285 51,027 16,123 2,188 915 1,273 10,290 New York City 196811 Aug. 7. 266 6,542 7,792 2,293 15,609 112,060 162,622 59,395 15,382 9,654 5,728 1,728 14. 171 6,460 7,903 2,293 15,577 112,396 163,184 59,977 15,575 9,758 5,817 1 ,767 21. 218 6,598 7,812 2,292 15,576 112,087 163.641 59,369 15,693 9,857 5,836 1 ,707 28. 425 6,050 7,897 2,292 15,614 111,735 163,422 60,237 15,758 9,854 5,904 1 ,771 1969 July 2. 9,754 289 2,104 11,382 2,498 121 16,737 128,015 177,506 62,433 12,136 7,519 4,617 3,866 9. 10,019 434 2,123 21,815 2,511 119 16,757 127,757 176,741 61,873 11,860 7,335 4,525 4,136 16. 9,725 1 ,644 2,062 12,137 2,512 121 16,701 126,730 175,507 62,153 11,451 7,062 4,389 4,130 23. 9,467 636 2,146 11,957 2,511 124 16,714 126,323 175,932 62,232 11,381 6,976 4,405 4,314 30............................ 9,640 687 2,193 12,409 2,513 124 16,778 126,175 175,578 62,548 11,150 6,786 4,364 4,559 Aug. 6. 10,510 802 2,083 11,934 2,520 124 16,855 125,826 174,975 61,101 10,936 6,603 4,333 4,249 13, 10,373 150 2,293 11,874 2,513 116 16,881 125,708 174,701 60,05$ 10,804 6,517 4,287 4,333 20. 10,253 705 2,334 12,159 2,511 121 16,820 125,418 173,537 60,682 10,587 6,354 4,233 4,524 27*........................... 11,112 841 2,091 11,859 2,522 110 16,823 124,877 173,611 61 ,094 10,487 6,327 4,160 4,261 1 Includes securities purchased under agreements to resell. 9 All demand deposits except U.S. Govt, and domestic commercial 2 Includes official institutions and so forth. banks, less cash items in process of collection. 1 Includes short-term notes and bills. *o Certificates of deposit issued in denominations of $100,000 or more. 4 Federal agencies only. it Figures not comparable with 1969 data. For description of revision 5 Includes corporate stock. in series beginning July 2 (with overlap for June 25), see Bulletin for Aug. 6 Includes securities sold under agreements to repurchase. 1969, pp. 642-46. 2 Includes minority interest in consolidated subsidiaries. 8 Exclusive of loans and Federal funds transactions with domestic com­ Note.—Figures for July and Aug. 1969 are preliminary and may be mercial banks. revised in a forthcoming Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1969 1969 1969 1968 1968 Aug. Aug. Aug. Aug. July 1st 2nd 27 20 13 6 30 Aug. July June II I IV half half Durable goods manufacturing: Primary metals................................ 1 947 J ,956 1 ,951 1 ,944 1 ,946 1 -10 55 36 87 224 51 56 Machinery................................... 5’224 5,270 5’336 5,363 5^400 -176 83 193 221 454 675 33 Transportation equipment.............. 2 >85 2^096 2J21 2,121 2,114 -29 21 8 -50 157 109 107 64 Other fabricated fnetal products.. . 2,102 2,151 2J83 2; 192 2'171 -69 -6 29 176 142 -67 318 -56 Other durable goods....................... 2,434 2,447 2,459 2,450 2,431 3 -5 47 176 38 67 214 27 Nondurable goods manufacturing: Food, liquor, and tobacco............. 2,415 2,482 2,405 2,488 2,507 -92 -37 198 211 -607 570 -396 740 Textiles, apparel, and leather......... 2,787 2 >07 2,797 2,775 2,743 44 33 78 253 241 -217 494 -89 Petroleum refining........................... J >29 1 ,845 1 '833 1 ,868 1; 882 -53 -186 42 142 315 32 457 117 Chemicals and rubber..................... 2^637 2,646 2,692 2,721 2,726 -89 -16 7 256 — 7 204 249 -29 Other nondurable goods................. 1 >53 1 ,942 1 ',931 1,935 1 >28 25 43 22 79 4 -82 83 30 Mining, including crude petroleum and natural gas.......................... 4 679 4,697 4,701 4,695 4,744 -65 -162 1 41 236 116 195 31 Trade: Commodity dealers................. 815 821 '864 876 '882 -67 -74 119 -356 -16 302 -372 218 Other wholesale...................... 3,442 3 ,487 3,503 3,538 3,544 -102 -14 29 33 1 67 160 200 214 Retail....................................... 4,021 4,081 4,113 4,173 4,154 -133 -152 11 8 425 — 179 566 246 306 Transportation.................................... 5315 5>33 5’399 5,382 5,402 13 -77 100 106 144 272 250 213 Communication.................................. 1,183 1 ,214 1 ,203 1,251 1 ,239 -56 41 91 138 -104 191 34 78 Other public utilities......................... 3 030 3 ,001 3 041 3,065 3 010 20 192 165 78 196 311 1 1 8 662 Construction....................................... 3 275 3 >09 3’318 3,306 3,263 12 -49 20 156 205 79 361 144 Services.............................................. 6 >96 6,661 6 646 6 >60 6’662 34 -95 54 1 85 545 432 730 433 All other domestic loans i................... 4,569 4,562 4,587 4,541 4,519 50 81 135 534 432 472 966 481 Bankers* acceptances............. '404 427 '406 420 441 -37 — 84 72 43 -155 30 198 -83 Foreign commercial and industrial loans................................ 2 336 2 352 2 380 2 363 2 394 -58 -36 16 — 76 -43 58 -119 3 Total classified loans.......................... 65^278 65 >87 65,869 66J27 66,102 -824 -509 1 ,141 2,567 I ,860 3,198 4,427 3,305 Total commercial and industrial loans. 76,652 77,057 77,276 77,581 77,607 -976 -796 1 ,179 2,768 1 ,922 6,608 4,690 3,793 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 1969 Industry Aug. June May Apr. Mar. Feb. Jan. Dec. Nov. 1st 27 25 28 30 26 26 29 25 27 II I IV III half Durable goods manufactur­ ing: Primary metals.................. 1 ,375 1,352 1,390 1,358 1,388 1,356 1,354 1 ,338 1 ,414 -38 50 -128 127 14 Machinery.......................... 2,509 2,474 2,432 2,488 2,429 2,238 2,323 2,261 2,245 42 168 -77 59 213 Transportation equipment. 1,195 1,097 1,086 1,110 1,163 1 ,127 1 ,095 1,035 969 11 128 104 23 62 Other fabricated metal products. .................. 780 798 789 776 714 709 694 738 714 9 -24 -63 42 60 Other durable goods......... 1 ,062 1 ,068 1,039 1 ,014 1 ,048 1 ,051 1,026 1 ,032 994 29 16 33 -29 36 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 853 859 813 767 708 681 703 775 779 46 -67 -74 28 84 Textiles, apparel, and leather........................ 664 646 619 618 622 633 621 629 602 27 -7 41 22 17 Petroleum refining............. 1,465 1 ,667 1 ,632 1 ,633 1 ,528 1 ,536 I ,504 1 ,212 1,217 35 316 -16 2 455 Chemicals and rubber..... 1,741 1 ,695 1,672 1 ,587 1 ,600 1 ,568 1,583 1 ,688 1,544 23 -88 150 -81 7 Other nondurable goods. . .1,058 1,051 1 ,036 1 ,012 1 ,025 1 ,025 1 ,059 1 ,061 1 ,072 15 -36 -26 36 -10 Mining, including crude pe­ troleum and natural gas. 4,020 4,203 4,230 4,302 4,270 4,355 4,442 4,033 3,828 -27 237 70 -158 170 Trade: Commodity dealers. . 111 114 111 112 1 10 112 114 118 114 3 -8 6 -1 -4 Other wholesale........ 659 671 659 653 674 628 653 643 613 12 31 58 -49 28 Retail......................... 1,144 1 ,155 1,154 1 ,163 1 ,154 1 ,147 1,124 1 ,135 1,159 1 19 21 -30 20 Transportation...................... 4,061 4,081 4,014 3,988 4,032 3,972 4,025 3,906 3,744 67 126 233 -30 175 Communication..................... 446 440 409 440 437 429 438 441 459 31 -4 -31 26 -1 Other public utilities............. 1,241 1,149 1 ,135 1,109 1 ,230 1,228 1,245 1,224 1,181 14 6 153 256 -75 Construction......................... 890 891 886 847 874 875 863 808 799 5 66 14 25 83 Services.................................. 2,861 2,869 2,885 2,891 2,869 2,816 2,675 2,576 2,517 -16 293 215 58 293 All other domestic loans.... 1 ,053 1 ,020 1 ,023 1 ,025 1 ,019 1 ,885 987 959 957 -3 60 38 16 61 Foreign commercial and in­ dustrial loans.......... 1,739 1,836 1,869 1 ,853 1,824 I ,015 1,901 1,919 1 ,914 -33 -95 38 -53 -83 Total loans............................ 30,927 31 ,136 30,883 30,746 30,718 30,386 30,429 29,531 28,835 253 1 ,187 759 289 1,605 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 Series on Commercial and Industrial Loans by Industry,” Feb. 1967 Bulletin, p. 209. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 32 BANK RATES □ SEPTEMBER 1969 PRIME RATE, 1929-69 (Per cent per annum) In effect during— Rate Effective date Rate Effective date Rate Effective date Rate 1929............................... 5 4-6 1947—Dec. 1............... 1% 1956—Apr. 13.........3’4 1966—Mar. 10......... 5'4 Aug. 21......... 4 June 29......... 5’4 1930............................... 34-6 1948—Aug. i 2 Aug. 16......... 6 1 1 1 9 9 9 3 3 3 1 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 1 * ' ^ 4 4 - - - 5 4 4 1950—Sept. 22.......... 2% 1957—Aug. 6......... 4‘A 1967—J M a a n. r . 2 2 7 6 . - . 2 ... 7 .. . . . . . . 5 5 ' ' 4 4 - 514 193 1 4 9 — 47 (Nov.)............... 1'4 1951—J O D a e c n t c . . . 1 1 8 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 3 » ^ A 1958—J S A a e p n p r . t . . 2 1 1 1 . . 2 . . . . 2 . . . . . . . . . . . . . . . . .....4 3 4 '4 1968—- N A o p v r. . 2 1 0 9 . . . . . . . . . . . . . . . . . . . 6 6'4 Sept. 25......... 6 -6'/. 1953—Apr. 27.......... 314 1959— S M e a p y t. 1 1 8. . . . . . . . . . . . . . . . . .. 4 5 14 D N e o c v . . 1 2 3 . . . . . . . . . . . . . . . . . . 6 6% 4 Dec. 18...... 6’4 1954—Mar. 17......... 3 1960—Aug. 23......... 414 1969—Jan. 7.......... 7 1955—Aug. 4.......... 3‘/4 Mar. 17......... 7'4 Oct. 14......... 314 1965—Dec. 6.......... 5 June 9......... 8'4 1 Date of change not available. SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 Percentage distribution of dollar amount Less than 7.50............................ 3.3 69,7 7.0 29.9 4.7 32.0 4.4 53.2 3.6 71.3 2.6 83.8 7.50............................................. 38,4 7.6 7.9 12.1 9.8 15.3 20.3 11.5 33.0 7.7 53.4 4.5 7.51-7.99..................................... 25.6 9.7 13.2 18.7 14.5 20.8 26.5 13.6 30.4 8.1 26.4 6.2 8.00............................................. 8.9 5.1 15.9 14. 1 17.3 11.1 12.6 1,1 9.6 5.3 5.4 2,7 8.01-8.49.................................... 8.5 3.4 16.6 12.7 20,4 8.5 13.9 5.9 8.4 3.5 3.8 1.2 8.50............................................. 5.2 1 .7 11 .8 3.8 11 .0 3.3 8.2 3.0 5.0 1 2 2.7 1.1 8.51-8.99..................................... 3.7 0.8 14.5 3.1 9.7 2.4 5.1 1.5 3.9 0.6 1.6 0.2 9.00.............................................. 3.0 0.7 4.6 1.6 3.8 2.1 2.8 1.6 2.1 0 7 3.1 0.1 Over 9.00.................................... 3.4 1.2 8.4 3.8 8.7 4.5 6.1 2.2 3.8 1.5 0.9 0.2 Total................................ 100.0 100.0 100.0 100.0 100 0 100.0 100,0 100.0 100.0 100.0 100.0 100,0 Total loans: Dollar (millions)..................... 4,471.4 3,880.5 55.1 49.3 470.9 421.6 944.4 793.3 638.5 498 2 2,362.5 2 118.2 Number (thousands)............... ' 36.5 ’ 32.2 14.4 12.8 15.2 13.6 4.9 4.1 l.l 0.8 1.1 ' 0,9 Center Weighted average rates (per cent per annum) 35 centers.................................... 7.86 7.32 8.22 7.73 8.23 7.70 8.01 7.46 7.84 7.29 7.70 7 16 New York City...................... 7.66 7.1 3 8.23 7 76 8.14 7.65 7.81 7 30 7.65 7 13 7.60 7.06 7 Other Northeast................... 8.18 7.59 8.31 7 88 8.50 8.03 8 31 7.76 8.16 7 48 7 84 7 18 8 North Central....................... 7.89 7.41 8.09 7.79 8.20 7.81 8.07 7.60 7.95 7 49 7 76 7.26 7 Southeast.............................. 7.66 7.01 7.96 7.37 7.91 7.20 7.72 7.09 7.44 6.79 7.45 6.84 8 Southwest............................. 7.87 7.25 8.27 7.56 8.09 7.42 7.89 7.21 7.80 7.23 7.76 7 18 4 West Coast.......................... 7.83 7.35 8.51 8.09 8.23 7.81 7.97 7.54 7.75 7.26 7.70 7.18 Note.—Beginning Feb. 1967 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 721­ 27 of the May 1967 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable) 4 Finance Prime co. Prime Period coml. paper bankers’ Federal 3-month bills 5 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 3- to 6- 90 days 1 Rate on Market Rate on Market Bills (mar­ Other 6 issues 7 months 2 new issue yield new issue yield ket yield) 5 1961........................... 2.97 2.68 2.81 1.96 2.378 2.36 2.605 2.59 2.81 2.91 3.60 1962........................... 3.26 3.07 3.01 2.68 2.778 2.77 2.908 2.90 3.01 3.02 3.57 1963 ........................... 3.55 3.40 3.36 3. 18 3.157 3.16 3.253 3.25 3.30 J. 28 3.72 1964........................... 3.97 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1965......................... 4.38 4.27 4.22 4.07 3.954 3.95 4.055 4,05 4.06 4.09 4.22 1966........................... 5.55 5.42 5.36 5. 1 1 4.881 4.85 5.082 5.06 5.07 5.17 5.16 1967........................... 5.10 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 1968......................... . 5.90 5,69 5.75 5.66 5.339 5.33 5.470 5.48 5.45 5.62 5.59 1 968—Aug................. 5.88 5.74 5.66 6.03 5.095 5.08 5.224 5.23 5. 15 5.41 5.32 Sept................ 5.82 5.61 5.63 5.78 5.202 5.20 5.251 5.26 5.19 5.40 5.30 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 5.51 5.56 5.47 Dec................. 6.1 7 5.86 6.20 6.02 5.916 5.94 6.014 6.05 5.98 6.00 5.99 1969—Jan...............•. 6.53 6.14 6.46 6.30 6.177 6.13 6.312 6.28 6.05 6.26 6.04 Feb................. 6.62 6.33 6.47 6.64 6. 156 6.12 6.309 6.30 6. 19 6.21 6.16 Mar................. 6.82 6.38 6.66 6.79 6.080 6.01 6.223 6.16 6.19 6.22 6.33 Apr................. 7,04 6.38 6.86 7.41 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 6.10 6.26 6.33 June............... 8.23 7.25 7.99 8.90 6.493 6,43 6.725 6.75 6.86 7.07 6.64 July................. 8.65 7.53 8.41 8.61 7.004 6.98 7.285 7.23 7. 14 7.59 7.02 Aug................. 8.33 7:71 8.04 9.19 7.007 6.97 7.194 7.19 7.27 7.51 7.08 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 6. 19 6.53 6.50 June 7......... 7.68 6.91 7.50 9.20 6.191 6.25 6.454 6.58 6.61 6.78 6.57 14......... 8.20 7.08 7.90 9.13 6.591 6.65 6.927 6.88 6.89 7. 16 6.60 21 . 8.40 7.31 8.08 8.54 6.666 6.57 6.654 6.70 6.77 6.94 6.57 28......... 8.55 7.59 8.38 8.34 6.524 6.29 6.866 6.84 7.09 7.28 6.77 July 5......... 8.66 7.81 8.50 9.00 6.456 6.58 6.944 6.94 7.33 7.71 7.00 12......... 8.75 7.81 8.50 9.07 7.069 6.94 7.309 7.19 7.08 7.67 7.04 19......... 8.65 7.83 8.43 9.23 7. 105 7.00 7.400 7.34 7.08 7.52 6.95 26......... 8.63 8.00 8.44 8.50 7.220 7.10 7.459 7.32 7.13 7.52 7.02 Aug. 2......... 8.50 8.00 8.18 8.05 7.172 7.08 7.313 7,19 7.16 7.53 7.07 9........8..38 7.83 8.03 9.57 6.994 6.98 7.085 7.11 7.29 7.42 7,01 16 8.38 7.75 8. 10 9.18 7.081 6.99 7.277 7.23 7.32 7.56 7. 1 4 23......... 8.30 7.64 8.00 8.79 6.856 6.86 7.121 7.15 7.17 7.45 7.03 30......... 8.25 7.56 8.00 8.82 7.098 7.06 7.293 7.27 7.30 7.59 7. 14 1 Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. * Bills quoted on bank discount rate basis. maturities in the 90-179 day range. 6 Certificates and selected note and bond issues. 3 Seven-day average for week ending Wednesday. 7 Selected note and bond issues. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 34 INTEREST RATES □ SEPTEMBER 1969 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio ( S lo ta n te g s ­ Total > term) Total 1 Aaa Baa Aaa Baa In tr d ia us l ­ R ro a a i d l­ P u u ti b lit li y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 1961............................................. 3.90 3.60 3,27 4.01 4.66 4.35 5.08 4.54 4.86 4.57 4.66 2,98 4.76 1962............................................ 3.95 3,30 3,03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963.............................................. 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964............................................. 4.15 3.28 3,09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965 ............................................. 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................. 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967............................................. 4,85 3.99 3.74 4.30 5.82 5.51 6,23 5.74 5.89 5.81 5.34 3.20 5.71 1968.............................................. 5.25 4.48 4,20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 1968—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 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 5.70 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 5.65 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 7.15 6.20 3.02 6.06 5.78 5.58 6.01 7.27 6.98 7.70 7.16 7.37 7.38 6.33 3.18 July.................................... 6,07 5.80 5.61 6.08 7.39 7.08 7.84 7.29 7.50 7.49 3.34 6.42 Aug.................................... 6.02 5.98 5.74 6.28 7.37 6.97 7.86 7.29 7.57 7.40 6,44 3.37 Week ending— 1969—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............................ 6.1 1 5.58 5.40 5.80 7.14 6.83 7.58 7.03 7.30 7.22 6.28 3.05 June 7............................. 6.09 5.73 5.55 5.95 7.19 6.90 7.62 7.10 7.31 7.28 6.27 3.07 14............................ 6.05 5.82 5.60 6.05 7.24 6.96 7.66 7.16 7.31 7.33 6.29 3.17 21............................. 6.03 5.82 5.60 6.05 7.31 7.03 7.74 7.21 7.38 7,43 6.37 3.22 28............................. 6.04 5.75 5.55 6.00 7,33 7.03 7.77 7.19 7.45 7.46 6.38 3.27 July 5............................ 6.08 5.75 5.55 6.00 7.34 7.03 7.77 7.19 7.45 7.48 6,36 3.20 12............................ 6.11 5.70 5.52 5.98 7.39 7,08 7.83 7.27 7.51 7.52 6.43 3.27 19............................ 6.05 5.70 5.52 5.98 7.41 7.10 7.88 7.31 7.51 7.53 6.39 3.33 26............................ 6.04 5.80 5.62 6.05 7.40 7.10 7.85 7.32 7.51 7,47 6.39 3.40 Aug. 2........................... 6.05 6.01 5.78 6.32 7.38 7.05 7.84 7.33 7.51 7.41 6.54 3.52 9............................ 5.98 5.91 5.70 6.20 7.38 7.00 7.88 7.32 7.55 7.41 6.42 3.37 16............................ 6.01 5.95 5.73 6.23 7.35 6.96 7.82 7.27 7.55 7.38 6.46 3.41 23............................ 6.00 5.95 5.73 6.23 7.36 6.95 7.84 7.26 7.58 7,38 6.43 3.33 30............................ 6.07 6.09 5.80 6.47 7.39 6.98 7.90 7,28 7.59 7.44 6.48 3.35 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 govt, bonds: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. Corporate bonds: Averages of daily figures. Both of these 23, 1967, Aaa-rated railroad bonds are no longer a component of the series are from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are 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 arc computed as follows: U.S. Govt, bonds: adjusted at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ SECURITY MARKETS A 35 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 ( G t l U e o o r . n m S v g t . ) , ­ S lo a t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P ut u il b it l y ic Total In t d ri u a s l ­ T p t r o i a o r n t n a s ­ ­ Ulility na F n i c ­ e in to d t e a x l 1 NYSE AMEX 1966........................ 78.63 102.6 86.1 85,26 91.09 46.34 68.21 46.15 46.19 50,28 45.41 44.25 14.67 7,538 2,741 1967........................ 76.55 100.5 81.8 91,93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968 ........................ 72.33 93.5 76.4 98.70 (07.49 48,84 66.42 55,37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1968—Aug.. ............ 74.48 95.9 78.1 98.11 106.77 48.80 66.60 55.04 57.59 49.01 44.09 68.19 28.38 10,718 4,778 73.95 93.7 78.4 101.34 110.53 51.11 66.77 56.80 59,57 51.94 44.53 71.77 29.75 13,435 6,542 Oct.,........ 72.44 92.7 77.0 103.76 113.29 54.26 66.93 58.32 61.07 55.24 45.22 77.50 30.76 15,112 6,376 Nov.............. 71.27 91,2 75.7 105.40 114.77 53.74 70,59 59,44 61,97 55.96 47.18 79.55 31.24 14*821 6,789 Dec............... 68.47 89.2 73.0 106.48 116.01 55.19 70.54 60,32 63.21 57,30 46.73 79.00 32.96 14,865 8,075 1969—Jan................ 67,61 88.0 72.3 102.04 111.00 54.11 68.65 57,82 60. 32 56.35 45.64 75.58 32.15 12,122 6,781 Feb............... 66.55 86.4 71.8 101.46 110.15 54.78 69.24 57.33 59,61 56.18 45.98 75,26 31.67 11;685 5,801 Mar............... 64.90 83.7 70.6 99.30 108.20 50.46 66.07 55.69 58,30 51,52 44.06 70.60 29.92 9,960 4,401 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 11,287 5,153 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 June.............. 64.84 78.6 68.9 99. 14 108.59 46.43 63.29 55.20 58,07 47.70 43,39 68.62 29.14 11'203 5^029 July.............. 64.75 78.5 68.2 94.71 103.68 43.00 61.32 52,40 55,00 42,80 42,31 64.56 25.78 10,872 4,215 Aug......... 65.18 76. 1 68.4 94. 18 103.39 42.04 59.20 52.09 54.85 41 .45 41.34 65,29 26.44 9,608 3,531 Week ending— 1969—Aug. 2........ 64.89 76.8 68. 1 90.98 99.50 41.13 59.70 50.17 52.57 39.94 41.24 60.87 25.49 14,252 5,587 9.....6..5.49 78.0 68.1 93.65 102.66 42.08 59.82 51.73 54.40 40.96 41.58 63.69 26.22 9,796 3,431 16....... 65.28 76.8 68.7 93.21 102.26 41 .61 58.94 51.50 54.18 40.61 41.25 63.95 26.15 8,877 3,119 23....... 65.35 75.9 69.1 95.20 104.62 42.32 59.06 52,70 55.57 41.90 41.38 66.83 26,73 10,061 3,824 30....... 64.68 74.2 67.6 94,82 104.22 42. 16 58.78 52.54 55.39 42.34 41.07 67.16 26.72 8,605 3.330 1 Begins June 30, 1965, at 10.90. On that day the average price of a share cent, 20-year bond. Municipal and corporate bonds, derived from average of stock listed on the American Stock Exchange was $10.90. yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, 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 stocks on the exchanges for a S’/i-hour trading day; beginning Jan. 1969 a computed as follows: U.S, Govt, bonds, derived from average market 4- hour trading day; beginning July 7, 1969, a 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 p e 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 & 1 s M (y a e t a u r r s it ) y L c p r ( o a p e ri a t e n c io r n t e ) / (t d h c o o p P h u l r l a i u a s c s r r . e e ­ s o ) f (t a d h L m o o o l u l o a a s u r n . s n o ) t f C c t ( r r e p a o a n e t n c e t r ) t ­ c F c h e e ( a p e n r e s g t ) r e & i s M (y a e t a u r r s i ) ty L c p r ( o a e p r a i n t e c i n o t r e ) / (th d c o o p P h u l r l a u i a s c s r r . e e ­ s o ) f (t d h a L o o m o u ll o a s a 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 28.6 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 22.7 73 0 25.6 18.5 1968—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 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............ 7.47 .96 25.4 72.6 34. 4 24.8 7.46 .85 23.0 71 8 28.2 19.9 May....... 7,50 .88 25.8 73.2 34.7 25.0 7.54 .83 22.7 71 9 27.8 19,7 June 7.62 .84 25 6 73.0 34. 8 24 9 7.64 .86 22.8 71 4 28 5 20.1 July*........ 7.75 .91 25.5 71.9 34.7 24.5 7.79 .91 22.9 71.7 28.7 20.2 1 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-53. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT □ SEPTEMBER 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 tomers’ net credit Total End of period net free ex­ Unre­ ad­ debit credit tended strict­ Restricted justed Brokers Banks Total bal­ bal­ by End of ed debt 1 2 ances ances brokers period (mil­ lions Under 30-39 40-49 50-59 60 per of 1968—July............... 6,500 2,420 8 920 8 861 3,269 5 592 20 20-29 per per per cent dol­ Aug............... 6^460 2’490 8 950 8 489 2,984 5 505 cent cent cent or more lars) Sept............... 6,390 2,520 8 910 8 723 3 126 5 597 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 1968—July.. 1.2 21.3 43.5 10.4 5.1 18.5 12,060 Dec................ 6,200 2,710 8*900 9*790 3*717 6 073 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 1969—Jan................. 5,930 2 750 8 680 9 042 3 597 5 445 Oct... 4.3 35.9 27.0 8.9 4.2 19.7 11,540 Feb................ 5,750 2,810 8*560 9*148 3*647 5*501 Nov.. 10.6 36.4 21.4 7.6 3.6 20.4 Il,460 Mar............... 5’590 2 780 8 370 8 318 3 *294 5 024 Dec.. 3.8 38.9 20.2 7.5 3.8 26.3 12,060 Apr................ 5'570 2,760 8*330 8 044 3 077 4*967 May............... 5^670 2,770 8 440 8,474 3 084 5 390 1969—Jan... 5.9 40.6 20.9 8.1 4.4 20.1 11,180 Juner............. 5 340 2'740 8 080 8 214 3 084 5*125 Feb... 2.7 38.8 22.9 9.4 5.1 21.1 10,840 July"............. 5,190 2 J00 7^890 7J15 2 J83 4J32 Mar.. 5.5 37.3 21 .1 9.3 4.9 21.9 10,520 Apr.. 7.4 35.1 19.6 8.8 4.6 24.5 10,720 May. 4.8 37.4 18.9 8.5 4.7 25.6 10,770 i End of month data. Total amount of credit extended by member firms Juner 1.8 33.1 19.9 10.8 6.0 28.4 10,440 of the New York Stock Exchange in margin accounts, estimated from July*. L0 29.4 19.1 13.8 6.6 30.1 10,140 reports by a sample of 38 firms. I Figures are for last Wed. of month for large commercial banks re­ porting weekly and represent loans made to others than brokers or dealers Note.—Adjusted debt is computed in accordance with requirements set for the purpose of purchasing or carrying securities. Excludes loans col­ forth in Regulation T and often differs from the same customer’s net debit lateralized by obligations of the U.S. Govt. balance mainly because of the inclusion of special miscellaneous accounts Note.—Customers’ net debit and free credit balances are end-of-month in adjusted debt. Collateral in the margin accounts covered by these data ledger balances as reported to the New York Stock Exchange by all now consists exclusively of stocks listed on a national securities exchange. member firms that carry margin accounts. They exclude balances carried Unrestricted accounts are those in which adjusted debt does not exceed the for other member firms of national securities exchanges as well as balances loan value of collateral; accounts in all classes with higher ratios are of the reporting firm and o[ its general partners. Net debit balances are restricted. total debt owed by those customers whose combined accounts net to a debit. Free credit balances are in accounts of customers with no unfulfilled commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use until withdrawn. EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, unless otherwise indicated) (Per cent of total, unless otherwise indicated) T d o e t b a t l Equity class (per cent) Net Equi i t n y c d la e s b s i t o s f t a a t c u c s ounts Total (mil­ End of period credit balance End of lions status 60 per cent Less than (millions period of 80 or Under or more 60 per cent of dollars) dol­ more 70-79 60-69 50-59 40-49 40 lars)1 1968—’July................... 51.7 44.4 3 9 6 000 Aug..................... 49.8 46.4 3.8 5*780 1968—July.. 6,500 15.4 28.1 30.6 9.5 4.9 11.6 Sept..................... 51.0 45.3 3.6 5 840 Aug.. 6,460 17.3 28.8 28.2 9.1 4.8 11.8 Oct............ 52.9 40.3 5.2 5^640 Sept.. 6,390 20.0 31.1 25.0 8.1 4.4 11.5 Nov..................... 53.2 43.3 3 5 5 550 Oct... 6,250 20.9 31.3 23.3 8.7 4.0 11.8 Dec...................... 54.4 40.4 5 2 5 690 Nov.. 6,200 25.5 31.4 19.4 7.4 3.9 12.5 Dec.. 6,200 24,0 30.2 19.4 8.0 4.2 14.2 1969—Jan....................... 52.6 43.2 5.1 5,700 Feb...................... 52.7 41.7 5 6 5 680 1969—Jan... 5,930 24.4 29.3 20,8 7.9 4.6 13.1 Mar............ 52.9 40.9 6.1 5 400 Feb.. 5,750 20.5 28.2 22.6 9.0 5.4 14.1 Apr..................... 52.5 42.5 5.0 5,120 Mar.. 5,590 22.1 27.9 20.5 9.5 5.2 14.8 May.................... 52.2 42.3 5.5 5 020 Apr. , 5,570 24.0 26.2 20.0 9.5 4.9 15.4 Juner.................. 54.7 39.7 5.7 5,110 May. 5,670 23.0 26.4 19.0 9.7 5.2 16,8 July?................... 51.4 42.0 6.6 4.970 June r 5,340 17.5 25.7 19.0 1 1.7 7.2 18.7 July*. 5,190 14.4 24.3 18.4 13.4 8.4 21.0 Note.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional i See footnote 1 to table above. purchases. Balances may arise as transfers based on loan values of other collateral in the customer’s margin account or deposits of cash (usually Note.—Each customer’s equity in his collateral (market value of col­ sales proceeds) occur. lateral less net debit balance) is expressed as a percentage of current col­ lateral value. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ OPEN MARKET PAPER; SAVINGS INSTITUTIONS A 37 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 Total th P r la o c u e g d h d P i l r a e c c e t* d . Total Others p i o n r t t o s p fr o o r m ts Do e l x la ­ r points in— dealers 1 iy 2 Total O bi w lls n bo B u il g ls h t O ac w ct n . c F e o i o g r n r r ­ . U S n ta it te e s d U S n ta it t e e d s change U St n a i t t e e s d co F u o n re tr i i g e n s 1963..................... 6,747 1,928 4,819 2,890 1,291 1,031 260 162 92 1,345 567 908 56 41 1,317 1964..................... 8,361 2,223 6,138 3’385 1,671 1 ,301 370 94 122 1,498 667 999 111 43 1,565 1965..................... 9,058 1’903 7’155 3'392 1,223 1,094 129 187 144 1,837 792 974 27 35 1,564 1966..................... 13,279 3'089 10,190 3'603 1,198 '983 215 193 191 2,022 997 829 103 80 1,595 1967..................... 16’635 4^901 11’634 4,317 1 '906 1347 459 164 156 2,090 1 ,086 989 37 162 2,042 1968—July........... 19,746 6,270 13,476 4,330 1,751 1,410 341 99 128 2,352 1,390 917 42 54 1,927 Aug........... 20,734 7,091 13.643 4,418 1 ,819 1374 344 51 149 2,399 1335 932 100 52 1,899 Sept........... 20,264 7,737 12,527 4,327 1,714 1,393 321 86 124 2,403 1320 945 78 46 1,838 Oct............ 20,839 7,592 13,247 4,420 1 ,551 1 ,280 271 56 119 2,695 1379 921 80 53 1 ,887 Nov.. 22,220 7^758 14,462 4,389 1 ,605 1,352 253 58 114 2,612 1,476 922 68 55 1 ,869 Dec....... 20,497 7 ,'201 13,296 4,428 1 ,544 1,344 200 58 109 2,717 1,423 952 52 68 1 ,934 1969—Jan............ 21,813 7,873 13,940 4,370 1 ,407 1,211 195 50 104 2,809 1,405 906 93 '63 '1,903 Feb........... 22,865 8,342 14,523 4320 1 ,473 1 363 210 91 99 2,757 1 ,449 859 82 '70 '1 ,960 Mar........... 23,681 9'003 14,678 4,464 '1 ,452 '1.185 266 94 122 '3,787 I ,460 872 77 '69 '1,987 Apr........... 24,390 10^076 14,314 4310 '1,478 '1,223 255 142 125 '2,765 1 ,523 875 58 '50 '2,003 May.......... 25’305 9,931 15,374 4,668 <387 '1,179 208 76 183 '3,022 1 ,591 910 45 '43 2,078 June 25'964 10,159 15,805 4,880 '1 313 '1,183 231 41 159 3,186 1 ,673 967 46 35 2,160 July........... 28,191 10,352 17’839 4,99! 1 388 1 ,123 264 41 162 3301 1 ,779 1 ,006 28 38 2,140 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 End of period State Corpo­ Cash O as t s h e e ts r lia tie b s il i­ De it p s o 2 s­ l O ia t b he il r i­ res a e c r ­ ve (in months Mort­ Other U.S. and rate and ties counts gage Govt. local and general govt. other 1 reserve accts. 3 or Over less 3-9 9 Total 1945................... 4,202 62 10,650 1 .257 606 185 16,962 15,332 48 1,582 n.a. n.a. n.a. n.a. 1960................... 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 n.a, n.a. 1 ,200 1961................... 28,902 475 6,160 677 5’040 937 640 42’829 38,277 781 3’771 n.a. 1 654 1962................... 32,056 602 6,107 527 5’177 956 695 46’121 41',336 828 3'957 n.a. n.a. n.a. 2 548 1963 ................... 36,007 607 5’863 440 5’074 912 799 49’702 44;606 943 4,153 n.a. n.a. n.a. 2 549 1964................... 40328 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. 2 697 1966................... 47 J 93 1,078 4,764 251 5,719 953 1 024 60,982 55 '006 i ’114 4'863 2010 1967.................. 50,311 1,203 4,319 219 8,183 993 1 ,138 66,365 60^21 1,260 4,984 742 982 799 2,'523 1968 ................... 53 286 1 407 3 834 194 10 180 996 1 256 7! 152 64 507 1 372 5 273 811 1 034 1 166 3 011 1968—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 1 '489 4’203 201 9,778 912 1,217 69,902 62,851 1 871 5,180 776 1 094 1 058 2 928 Sept......... 52,323 1 ,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......... 52,946 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 1 307 3'834 194 10 ’ 180 996 I ’256 71 J52 64,507 1 ’372 5,273 811 1 034 1' 166 3 011 (969—Jan.......... 53,579 1 ,426 3,962 195 10,298 835 1 ,256 71,550 64,747 ! ,507 5 295 760 1 073 1 (86 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 1171 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 May........ 54’442 1 313 3,821 197 10^800 897 1 ,288 73,159 65^888 1 ^843 5’428 818 1 '237 1 ’255 3,310 June'... . 54,672 1 ,633 3,618 192 11 ,029 865 1 ,306 73,316 66,243 1 ,664 5,409 843 1,190 1,216 3,249 July......... 54,887 1 ,539 3,634 201 10,982 845 1,303 73,392 66,091 1 ,863 5,438 787 1,202 1,170 3,158 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 38 SAVINGS INSTITUTIONS □ SEPTEMBER 1969 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities Total Mort­ Real Policy Other assets Total United State and Foreign i Total Bonds Stocks gages estate loans assets States local 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: 1966....................................... 167,022 10,864 4,824 3.131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967....................................... 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968....................................... 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5,573 11,284 10,881 1968—Juner.......................... 182,504 10,683 4,447 3,187 3,049 77,074 67,273 9,801 68,483 5,369 10,697 10,198 July............................ 183,094 10,476 4,400 3,038 3,038 77,602 67,659 9,943 68,708 5,424 10,813 10,071 Aug............................. 183,840 10,491 4,427 3,023 3,041 77,894 67,850 10,044 68,909 5,474 10,925 10,147 Sept............................. 184,752 10,505 4,443 3,012 3,050 78,176 68,002 10,174 69,024 5,496 11,026 10,525 Oct.............................. 185,701 10,574 4,479 3,025 3,070 78,754 68,411 10,343 69,212 5,510 11,117 10,534 Nov............................. 186,892 10,531 4,415 3,037 3,079 79,304 68,793 10,511 69,407 5,535 11 ,197 10,918 Dec............................. 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5,573 11,284 10,881 1969—Jan.............................. 188,972 10,602 4,400 3,048 3,154 80,418 69,350 11,068 70,205 5,620 11,399 10,728 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 69,94! 11,483 70,480 5,670 11,699 10,759 Apr............................. 191,362 10,709 4,295 3,222 3,192 81,635 70,010 11,625 70,661 5,654 11,903 10,800 May............................ 192,127 10,711 4,301 3,216 3,194 81,980 70,194 11,786 70,820 5,679 12,090 10,847 June............................ 192,311 10,551 4,145 3,212 3,194 82,227 70,298 11,929 70,964 5,710 12,323 10,536 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but arc included in total, in “other assets,” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments J Total assets—• End of period U.S. Total Reserves Outstand­ Mort­ Govt, liabilities Savings and un­ Bor­ Loans Made ing at gages secur­ Cash Other1 capital divided rowed in Other during end of ities profits money2 process period period 1960...................... 60,070 4 595 2,680 4 131 71,476 62,142 4,983 2,197 1 ,186 968 1 340 1961...................... 68,834 5,21! 3,315 4,775 82,135 70’885 5,708 2*856 1 550 1 136 1 872 1962...................... 78,770 5,563 3 '926 5 346 93’605 80^236 6 520 3 629 1 999 1 221 2*193 1963.................... 90,944 6,445 3 ,979 6,191 101 385 101,887 7 899 5,601 2 239 1 *729 2 572 1964...................... 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2*239 1 729 2 549 1965...................... 110'306 7’414 3*900 7 960 129*580 110*385 8’704 6 444 2’198 1 849 2 707 1966...................... 114,427 7762 3,366 8,378 133 933 113,969 9 096 7,462 1 270 2*136 1 482 1967...................... 121'805 9 180 3 442 9,107 143 534 124,531 9 546 4,738 2'257 2*462 3 004 1968...................... 130 782 9 531 2*964 9 548 152,825 131*620 10 311 5 672 2*444 2*778 3 584 1968—July............ 126,618 9,700 2,449 9 513 48 280 127,312 9 840 5,276 2,536 3,316 I 308 3,860 Aug....... 127’492 9’604 2*409 9 615 149 120 127*707 9 834 5'274 2’438 3 873 1 330 3 794 Sept........ 128,302 9 533 2,528 9*608 149 971 128*834 9*834 5 324 2’422 3*557 1 *276 3*727 Oct............. 129,147 9 605 2,568 9658 150 978 129,329 9 831 5 ,335 2416 4 067 1 421 3 802 Nov........ 129^879 9,671 2,693 9 890 152,133 129’977 9 834 5,331 2’392 4*599 1 317 3 788 Dec......... , 130782 9 531 2 964 9 548 152 825 131 ’620 10 311 5,672 2 444 2 778 1 275 3 584 1969—Jan............. 131 404 9 920 2,372 9 527 153 223 131 529 10 318 5 665 2 403 3 308 1 351 3 718 Feb............. 132 075 ib ii9 2 519 9 712 154425 132 134 10*303 5 587 2*470 3 ’931 1 *497 4*028 Mar........... 132,992 10’136 2 550 10*019 55 697 133 *504 10*294 5 ,614 2*644 3*641 1 *688 4*373 Apr............. 134,018 9 868 2 380 10 027 156 293 132 988 10 292 6 058 2 800 4* 155 1 787 4’601 May....... 135,006 9 868 2,423 10464 157 761 133 482 10 281 6 246 2 911 4*841 1 676 4 607 Juner......... 136,222 9,443 2,534 10 363 158,562 134 841 10 679 6,731 3*002 3*309 1 *532 4 373 July............ 137'092 9,169 1 ,963 10,381 158,605 133,779 10,674 7,349 2,973 M30 1 *357 4,147 1 Includes other loans, stock in the Federal home loan banks, other Note.— Federal Home Loan Bank Board data; figures are estimates for investments, real estate owned and sold on contract, and office buildings all savings and loan assns. in the United States. Data are based on and fixtures. monthly reports of insured assns. and annual reports of noninsured assns. 2 Consists of advances from FHLB and other borrowing. Data for current and preceding year are preliminary even when revised. 3 Insured savings and loan assns. only. Data on outstanding commit­ Figures for Jan. and June 1968 reflect conversion of one savings and loan ments are comparable with those shown for mutual savings banks (on assn, to a mutual savings bank. Figures for June 1968 also reflect exclu­ preceding page) except that figures for loans in process are not included sion of two savings and loan assns. in process of liquidation. Data for above but are included in the figures for mutual savings banks. May 1969 reflect conversion of one savings and loan assn, to a commercial bank. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ FEDERALLY SPONSORED CREDIT AGENCIES A 39 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 tio ss 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 coope ^o ra r t iv . es i c n r t e e d rm it e b d a i n a k te s b la an n k d s End of period v m a b A n t e e o d c r m s e ­ s ­ I m nv e e n s ts t­ p C a o d a n s e s d i ­ t h s B n a o o n n te d d s s M po b d e s e e m i r ­ t s ­ C s a to p c it k al M lo g ( a a o A 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 a v o p e n ) e s s r ­ D t e u (L b re e ) s n­ c L o a o d ( u A n a is n d n ) ­ t s s D t e u ( b L re e ) s n­ M lo g ( a a A o g n r ) e s t ­ B ( o t b ) ds 1961............. 2,662 1,153 159 1,571 1,180 1,107 2,770 2,453 697 435 1,650 1,585 2,828 2,431 1962............. 3’479 1 '531 173 2,707 1,214 1,126 2,752 2,422 735 505 1,840 1,727 3,052 2,628 1963............. 4,784 1,906 159 4,363 1,151 1,171 2,000 1,788 840 589 2,099 ^952 3,310 2,834 1964............. 5^325 1,523 141 4,369 1,199 1,227 1,940 1,601 958 686 2,247 2,112 3,718 3,169 1965............. 5'997 1.640 129 5,22! 1,045 1,277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966............. 6.93$ 2,523 113 6,’859 1,037 1 ,369 4,266 3’800 1,290 1,074 2,924 2’786 4,958 4,385 1967............. 4,386 2,598 127 4’060 1 ,432 1’395 5,348 4’919 1,506 1,253 3',411 3',214 5,609 4,904 1968—July. . 4,988 2,463 86 4,700 1,189 1 ,406 6,465 5,550 1,454 1 ,291 4,031 3,862 6,004 5,214 Aug... 4,997 2,264 68 4,501 1,177 1,401 6,502 5,822 1,450 1,280 3,998 3,871 6,033 5,384 Sept... 5,026 2,283 93 4,501 1 ,253 1 ,401 6,562 6,032 1 ,479 1,280 3,841 3,814 6,064 5,384 Oct... 5,034 2,300 97 4,501 1 ,287 1 ,401 6,657 5,923 1 ,551 1,290 3,753 3,669 6,094 5,423 Nov... 5,040 2,581 81 4,701 1 ,322 1 ,402 6,758 6,166 1 ,583 3,636 3,570 6,107 5,423 5,423 Dec... 5,259 2,375 126 4,701 1 ,383 1 ,402 6,872 6,376 1,577 1 .334 3,654 3,570 6,126 5,399 1969—Jan.. . 5,357 2,049 82 4,701 1,111 1 ,408 7,032 6,604 1 ,630 1 ,401 3,719 3,576 6,169 5,432 Feb... 5,298 2,069 82 4,601 1,131 I ,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 I ,648 1,426 n.a. 3,907 6,412 5,719 May.. 5,971 2,393 73 5,521 1 ,202 1 ,448 7,718 7,241 1 ,614 1 ,395 n.a. 4,044 6,483 5,716 June.. 6,413 1,964 141 5,521 1 ,278 1 ,451 7,891 8,077 1 ,594 1 ,391 4,355 4,176 6,557 5,716 July. . 7,053 1 ,496 88 6,021 928 1 ,435 8,125 8,093 1 ,594 1 ,387 n.a. 4,310 6,605 5,867 Note.—Data from Federal Home Loan Bank Board, Federal National bonds held within the FHLB System), and are not guaranteed by the U.S. Mortgage Assn., and Farm Credit Admin. Among the omitted balance Govt.; for a listing of these securities, see table below. Loans are gross sheet items are capital accounts of all agencies, except for stock of home of valuation reserves and represent cost for FNMA and unpaid principal loan banks. Bonds, debentures, and notes are valued at par, They in­ for other agencies. clude only publicly offered securities (excluding, for the home loan banks. OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, APRIL 30, 1969 Amount Amount Amount Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions Agency, issue, and coupon rate (millions of dollars) of dollars) of dollars) Federal home loan banks Federal National Mortgage Federal land banks—Cont. Notes: Association—Cont. Bonds: Aug. 25, 1969....................6^ 300 Debentures: Sept. 22, 1969.....................6% 279 Oct. 27, 1969....................6% 400 Sept. 10, 1971......................4Vi 96 Oct. 20, 1969.....................4% 209 Jan. 26,1970.........I.........6.75 500 Sept. 10, 1971.....................5% 350 Jan. 20, 1970.....................5% 209 Feb. 25, 1970....................7 450 Nov. 10, 1971....................6.85 350 Feb. 20, 1970.....................5U 82 May 25, 1970....................6 500 Feb. 10,1972......................5% 98 Feb. 20, 1970...................6.30 344 Mar. 10, 1972................ . .6% 250 Apr. 1, 1970.....................3% 83 Bonds: June 12, 1972.....................4% 100 Apr. 20. 1970....................6.20 362 Sept. 25, 1969....................6 400 Sept. 11, 1972...................7.40 200 June 22, 1970....................6.70 174 Nov. 25, 1969.......................6 500 June 12, 1973.....................4% 146 June 22, 1970.....................6% 203 Feb. 25, 1970.......................6 200 Oct. 1, 1973........................6 250 July 20. 1970.....................5i/8 85 Feb. 25, 1970.......................7 450 Feb. 10, 1977.....................4'4 198 July 20,1970.....................6 241 Mar. 25, 1970.......................6 200 Aug. 20, 1970....................8.15 270 J M M A A M F u e u p a a a n b g r y y r e . . . . 2 2 2 2 2 2 2 5 5 5 5 6 7 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 1 0 0 0 0 1 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 . 6 6 . . 8 6 7 . . . . 8 7 8 6 0 5 0 0 2 5 3 3 2 2 3 2 5 5 0 0 0 4 5 0 0 0 0 0 6 Ba D nk e O D J A N s b a e u c o e n f c t g v o n . . . . r . t u c r o 4 3 5 I 1 e , , o , , , s p 1 : 1 1 1 1 e 9 9 9 9 9 r 6 6 7 6 a 6 9 0 9 9 t 9 i . . . . . v . . . . . . . . e . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 6 7 . . . . . 8 7 9 6 8 0 0 5 0 0 2 3 2 2 2 5 2 7 8 4 1 1 7 9 9 O O J S F F M u e e e c c a l b p b t y t . . y . t . . 2 2 2 2 1 1 0 3 1 5 0 5 0 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 1 0 1 2 2 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8 6 6 5 . .3 . . . . . 3 3 1 8 0 7 1 % 5 0 0 0 0 4 4 2 4 2 2 1 3 4 2 6 7 3 0 1 7 3 0 0 0 9 Federal National Mortgage Associa­ Oct. 23, 1972.....................5^ 200 tion—Secondary market opera­ Feb. 20, 1973-78.............414 148 tions Federal intermediate credit banks Feb. 20, 1974...................4U 155 Debentures: Apr. 21, 1975...................4% 200 Discount notes............................... 2,880 Aug. 4, 1969...................5.80 414 Feb. 24, 1976...................5 123 Sept. 2,1969...................6.05 486 July 20, 1976...................5% 150 Debentures: Oct. 1,1969....................6.35 Apr. 20, 1978...................5% 150 D Fe e b c . . 1 10 2 , , 1 19 9 7 6 0 9 . , 6 .6 .6 0 5 2 5 5 0 0 N De o c v . . I 3 , , 1 1 9 9 6 6 9 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 6. . 6 7 0 0 4 4 9 8 0 5 Jan. 22, 1979...................5 285 Apr. 10, 1970. • 4% 142 Jan. 5, 1970...................6.85 525 Tennessee Valley Authority June 10, 1970. 6.60 400 Feb. 2, 1970...................6.90 526 Short-term notes..................... "355 July io, 1970 7.38 400 Mar. 2, 1970..................7.10 445 Bonds: Sept. 10, 1970. .4% 119 Apr. I, 1970....................7.90 433 June 1, 1974.................8.00 100 Oct. 13, 1970, •5J/4 400 Nov. 15, 1985.................4.40 50 Dec. 10, 1970. .8.10 250 Federal land banks July 1, 1986...................4% 50 Mar. 11, 1971 ..6 350 Bonds: Feb. 1, 1987...................4% 45 June 10, 1971. .6.85 250 Feb. 15, 1967-72...........4ft May 15, 1992..................5.70 70 Aug. 10, 1971. ..4K 64 Oct. 1, 1967-70...............4|4 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 40 FEDERAL FINANCE □ SEPTEMBER 1969 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend­ Less: Cash and Memo: iture account Borrowings from the public 2 monetary assets Net debt Period r B e u c d e g ip e t t s p t e u N e r n x e e d ­ t s i­ le N in n e g d t ­ B la o u y d u s g t ­ e 1 t s B d u ( u e r o d - p fi r g ) c l u e it s t s P d e t u e i c e b u b s l r t ic i­ A s P e t g i l c e e u u s n s r 3 : c i­ y S m L p e e e n a s c t s c i s a : c l o b I u y n n v G t e s o s v t­ t, S n L p o e e t s e c s s ia : 4 l b E o T i q n r o u r g t o a a 3 w l l s ­ : b o T a p s i l r e u n a e r g r n a a y c ­ t e ­ Other f m O in n in e t o a e h g a n f t e n , 5 c s r ­ t o p r s w a r h i n t v n o i a s p e f t 2 r e e ­ r issues Other Fiscal year: 1966....................... '130,856 130,821 3,832 134,653 -3,797 2,633 4,042 2,470 773 354 3,077 '-609 160 '271 1967....................... '149,552 T153,201 5,053 ' 158,254 '-8,702 6,314 5,079 5,035 4,001 -482 '2,838 '-5.124 303 'I ,043 1968....................... 153,671 172,803 6,030 178,834 -25,162 21 ,357 5,944 3,371 1 ,949 -1,119 23,100 -397 1 ,728 3,392 1969»..................... 187,843 183,289 1 ,480 184,769 3,074 6,142 640 7,263 2,190 -1,384 -1,288 596 1,154 -33 ........... Half year: 1967—July-Dec.... 67,181 84,862 I ,666 86,527 - 19,346 18,442 1 ,650 1 ,079 577 -436 18,872 -131 32 375 1968—Jan.-June.. < 86,490 87,941 4,364 92,307 -5,816 2,915 4,294 2,292 1,372 -683 4,228 -266 1,696 3,017 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 1969—Jan.-June^.. 104,962 91,103 503 91,606 13,356 -4,308 -806 7,643 603 -1 ,000 -12,364 1,194 1 ,260 1 >^l Month: 1968—July............ '11,685 '13,564 313 '13,877 '-2,192 3,500 69 -641 169 -12 4,053 '931 -335 '-1,265 ........... Aug............. 13,203 16,165 189 16,355 -3,152 3,278 1 ,369 1,184 639 -15 2,839 -1 ,420 329 -778 Sept............. 18,753 6,029 207 16,235 2,518 387 28 -374 31 758 4,003 78 806 5,284 Oct.............. 10,716 6,553 286 16,839 -6,122 2,451 292 -857 482 -7 3,125 -2,073 -325 599 Nov............. 12,737 15,070 55 15,124 -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 1 969—Jan.............. 15,845 5,798 -37 15,761 84 1,383 -33 612 112 -1,000 1 ,626 2,504 789 1 ,583 Feb............. 14,590 4,361 373 14,734 -144 -648 195 1,159 274 -1 ,887 -2,304 -126 -399 ........... Mar............. 13,727 5,637 2 15,639 -1,912 782 -91 150 122 418 -114 -171 1 ,208 Apr............. 23,596 5,922 50 15,972 7,625 -1,080 -559 1 ,266 -449 -2,456 3,380 2,119 330 May............ 13,346 5,279 485 15,764 -2,418 1 ,599 -137 2,571 375 ...-..1.. ..,.4.85 -2,458 -1 ,843 -400 ........... JuneP.......... 23,855 4,105 -369 13,736 10,119 -6,345 -181 1 ,885 169 -8,580 186 493 -860 July............. 12,542 5,542 152 15,695 -3,153 3,292 1 ,316 -21 191 4,438 -217 -484 -402 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n n ts ba G la o n ld c e Total se P c d u u e b r b i l t t i 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 l s , t m ac e c n o ts u n o ts f S n L p o e e t s e c s s ia : 4 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 G o o r N i r n v o p o s a v s o w t t . r . e — - e 6 d issues Other Fiscal year: 1965 ....................... 672 10,689 108 II,469 317,274 9,335 48,650 12,888 3,455 261,616 8,309 1966....................... 766 10,050 10 10,917 319,907 13,377 51,120 13,662 3,810 264,693 10,436 1967....................... 1 .311 4,272 112 5,695 326,221 18,455 56,155 17,662 3,328 267,531 9,220 1968....................... 1 ,074 4,113 111 5,298 347,578 24,399 59,526 19,611 2,209 290,631 10,041 1969”..................... 1 ,258 4,525 1 12 5,894 353,720 14,256 66,790 20,869 825 279,492 24,071 Calendar year: 1967....................... 1,123 4,329 1 12 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 21,481 Month: 1968—July............. 1,113 4,787 II 6,012 351,078 24,474 58,885 19,780 2,197 294,690 10,044 Aug............. 916 3,564 II 4,592 354,356 25,843 60,069 20,419 2,182 297,529 9,927 Sept............. 1 ,036 7,448 II 8,595 354,743 20,055 59,695 19,919 2,182 293,001 15,948 Oct.............. 1 ,086 5,325 11 6,522 357,194 20,347 58,838 20,401 2,175 296,126 15,882 Nov............. 478 2,179 11 2,768 356,863 20,267 59,047 20,632 2,010 295,441 16,328 Dec............. 703 3,885 1 1 4,700 358,029 15,064 59,146 20,266 1,825 291,855 21,481 19.69—Jan............... 517 6,576 11 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 7,105 111 8,166 358,466 14,575 62,334 20,325 825 289,557 23,524 May............ 621 4,976 112 5,708 360,065 14,437 64,905 20,700 825 288,072 24,098 JuneP......... 1 ,258 4,525 112 5,894 353,720 14,256 66,790 20,869 825 279,492 24,071 July............. 935 4,630 112 5,677 357,012 15,572 66,768 21,062 825 283,930 n.a. * Equals net expenditures plus net lending. penditure account to public debt account, increasing recorded borrowing 2 The decrease in Federal securities resulting from conversion to private from the public during July 1969 by $1,583 million. ownership of Govt.-sponsored corporations is shown as a memo item 4 Represents non-interest-bearing public debt securities issued to the rather than as a repayment of borrowing from the public in the top panel. International Monetary Fund and international lending organizations. In the bottom panel, however, these conversions decrease the outstanding New obligations to these agencies are handled by letters of credit. amounts of Federal securities held by the public mainly by reductions in 5 Includes accrued interest payable on public debt securities, deposit agency securities. The Federal National Mortgage Association (FNMA) funds, miscellaneous liability and asset accounts, and seigniorage. was converted to private ownership in Sept. 1968 and the Federal Inter­ 6 Includes debt of Federal home loan banks, Federal land banks, D. C. mediate Credit Banks (FICB) and Banks for Cooperatives in Dec. 1968. Stadium Fund, FNMA (beginning Sept. 1968), FICB, and Banks for 3 Reflects transfer of publicly-held CCC certificates of interest from ex­ Cooperatives (beginning Dec. 1968). Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation Social insurance taxes Individual income taxes income taxes and contributions Period Total With Non­ Re­ Net Gross Re­ c E o m t n a t x p r e i l b o s u y a m ti n o e d n n s t 1 Un- O n th e e t r Net E ta x x c e is s e C to u m s s ­ E a g s n i t f a d t t e c M e r i i p e s ­ t e s , 3 held with­ funds total re­ funds empl. re­ total held ceipts Pay­ insur. ceipts2 roll Selftaxes empl. Fiscal year: 1966............................... r 130,85642,811 18,486 5,851 55,446 30,834 761 20,662 3,777 ’1,129 ’’25.567 13,062 1 ,767 3,066rl 875 1967................................... ’149,552 50,521 18,850 7,845 61,52634,918 94626,047 1 776 3,'659 1 ,’867 ’’33,349 13,719 1 ,’901 2'978’’2,108 1968............................ 153,671 57,301 20,951 9,52768'72629,897 1 ,23227,680 1 ,544 3746 c2,052 ^34,622 14,079 2738 3,051 f2,49l 1969^................................. 187,843 70,14427,265 10,183 87726 38,356 1 ,66032,530 1 ,715 3,325 2,350 39,919 15,213 2,319 3,478 2,991 Half year: 1967—July-Dec................. 67,181 27,211 4,150 55630 805 11 345 576 12,679 105 1,335 964 15,082 7,076 993 1 ,332 1 125 1968-—-Jan -June............... 86,490 30'089 16,802 8,971 37’921 18,551 655 15,001 1 ,439 2711 1 ,087 19,538 7'003 1 ,045 1 '718 1 '369 July-Dec.......... 82,881 33’712 5,515 ’47538751 15,494 785 14745 131 1 790 1 '179 17744 7,834 1 ,213 I ,417 1 ,413 1969~-Jan.—Junep........ 104,96236,43221 '750 9,70848,475 22’862 876 17,586 1 783 2,036 1 '170 22,375 7,379 1'107 2,060 I ’579 Month: 1968 July......................... 1 1,685 ’4,585 605 151 ’5 038 2,259 84 2,093 115 r205 ’2,412 1 ,448 205 232 *175 Aug......................... 13,203 6,200 272 112 6,360 ’654 116 3*664 618 167 4,449 1,175 210 229 242 Sept........................ 18^753 5 765 3,682 48 9 199 5,133 133 2,273 1 10 55 213 2,651 1 723 205 229 247 Oct.......................... 10,716 4,981 '378 60 5,299 1 ,496 218 1 ,939 6 108 204 2,256 1 722 212 242 207 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......................... 13727 6,015 ’843 2’858 3 999 5,189 223 2 370 I 34 63 198 2,865 1,156 197 308 237 Apr.................. 23796 5 164 9,540 2,598 12’106 5'554 231 2755 958 162 206 3,881 1 J 60 224 631 271 May........................ 1 3 746 6,681 '804 2’725 4'760 ’959 152 4'545 190 821 192 5,748 1 772 213 310 237 Junep................ 23’855 6’205 4,178 283 10 100 8,710 104 2732 64 57 172 2,825 1 786 210 306 422 July........................ 12742 6,005 '548 I5C 6’404 1 , 196 126 2710 124 244 2,878 1 ,’419 222 221 328 Budget outlays4 Period Total t f i e N o d n n e a s ­ a e ­ l a I ff n a t i i r , s s S e p r a e a r ­ c c e h A t c u g u r l e r ­ i­ so N u u re r r a a c ­ t e l ­ s tr m C a a e o n n r m s d c p e ­ . de C m a v o n e u m d l n o . - p , E m d t a i a u o n n d c n a ­ ­ w H e a e l n f a a d l r t h e e V ra e n t­ s In e t s e t r­ g G e o r e v a n t l . ­ t I g r n a a o t c n r v ­ a s t, ­ ­ housing power tions5 Fiscal year: 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................................... 158752 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................................... 178,834 80,516 4,869 4,721 5,626 1 ,679 7,985 3,642 7,595 43,525 6,894 13,746 12,605 -4,570 1969^................................. 184,769 81,251 4,127 4,247 6,076 2,119 8,013 1 ,115 7,591 49,003 7,703 15,850 2,863 -5,189 1970*6................................ 192,899 Half year: 1967—July-Dec................. 86,527 *38,739 2 792 1968—Jan.-June............... 92,335 *41,784 2,429 July-Dec................. 93,163 39,803 1 ,906 2,133 4,924 1 ,268 4,501 685 3,382 23,899 3,664 7,609 1 ,419 -2,033 1969—Jan.-June*............ 91,606 41,448 2,221 2,114 1,152 851 3,512 430 4,209 25,104 4,039 8,241 1 ,444 -3,156 Month: 1968—July........................ ’13,877 r5,473 327 277 ’594 -55 736 r429 ’359 3,852 594 1 ,270 ••222 -202 Aug......................... 16,355 6,736 310 434 1,100 341 851 113 594 4,044 602 1 ,249 263 -281 Sept........................ 16,235 6,660 244 342 1 ,447 251 770 10 591 4,008 625 1 ,292 172 -178 Oct.......................... 16,839 7,068 612 393 893 321 929 338 553 3,930 599 I ,147 321 -265 Nov......................... 15,124 6,603 319 334 576 207 619 -84 532 4,107 619 1 ,327 227 -265 Dec........................ 14,394 6,923 94 353 320 203 601 3 638 3,956 627 1 ,324 192 -841 1969—Jan.......................... 15,761 6,887 271 347 626 144 635 234 576 4,103 636 1 ,280 226 -204 Feb......................... 14,734 6,416 381 335 271 72 406 204 721 4,058 651 1,349 173 -302 Mar........................ 15,639 6,815 286 385 327 152 583 -79 569 4,405 715 1 ,411 278 -210 Apr......................... 15,972 6,934 377 353 448 199 537 46 632 4,373 695 1 ,407 226 -255 May........................ 15,764 6733 459 367 153 154 657 273 744 4,197 686 1,388 244 -291 June*...................... 13,736 7,663 445 327 -672 129 696 -249 966 3,966 656 1 ,407 297 -1,896 July......................... 15,695 6,560 324 319 659 223 613 249 411 4,299 660 1 ,364 272 -258 1 Old-age, disability, and hospital insurance, and Railroad Retirement 4 Outlays by functional categories are now published in the Monthly accounts. Treasury Statement (beginning April 1969). Monthly back data (beginning 2 Supplementary Medical Insurance premiums and Federal employee July 1969) are published in the Treasury Bulletin of June 1969. retirement contributions. 5 Consists of government contributions for employee retirement and 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ interest received by trust funds. ous receipts. 6 Estimate presented in Apr. 1969 Budget Review. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 1969 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period d p T g e u r o o b b t s t a l i s c l 1 Total Marketable C v ib e o l r e n t ­ ­ Nonmarkct S a a b v l ­ e i S ss p u e e c s ia 4 l Total Bills C c e at r e ti s fi­ Notes Bonds 2 bonds Total 3 b i o n n g d s s & notes 1941—Dec................................................... 57.9 50.5 41.6 2.0 6.0 33,6 8.9 6.1 7.0 1946—Dec................................................... 259.1 233.1 176.6 17,0 30.0 10.1 119.5 56.5 49.8 24.6 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 ........5..9....0 97.0 3.0 52.0 49.7 46.1 1965—Dec................................................... 320.9 270.3 214.6 6(1.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec................................................... 329.3 273,0 218,0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec................................................... 344.7 284,0 226.5 69.9 ........6..1. ...4 95.2 2.6 54.9 51.7 57,2 1968—Aug................................................. 354.4 291.1 233.2 69,4 75.4 88.4 2.5 55.5 52,0 60.1 Sept.................................................. 354.7 291 .9 233.6 69.8 75,4 88.3 2.5 55.8 52.1 59,7 Oct.................................................... 357.2 295.2 236.7 73.0 75,3 88.3 2.5 56.1 52.2 58.8 Nov................................................... 356.9 294.8 235.7 73.0 76.5 86.2 2.5 56.7 52,3 59.0 Dec.................................................. 358.0 296,0 236.8 75.0 ........7..6....5 85.3 2.5 56,7 52.3 59.1 1969—Jan.................................................. 359.4 297.8 238.5 76.8 76.5 85.3 2.5 56.8 52.3 59.8 Feb................................................... 358.8 295.9 236.5 76,8 78,2 81.5 2.5 56.9 52.3 60.9 Mar.................................................. 359.5 296.6 237.3 77.5 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 78.9 79.8 2.5 56.7 52.2 64.9 June................................................. 353.7 284.9 226. 1 68.4 78.9 78.8 2.5 56.4 52,2 66.8 July................................................... 357.0 288.4 229.6 71.9 78.9 78.8 2.5 56.3 52.2 66.8 Aug................................................... 360.2 289,9 231.2 74.0 ............. 78.5 78,7 2.5 56.3 52.1 68.4 1 Includes non-interest-bearing debt (of which $635 million on Aug. 31, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1969, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds, and the Federal postal saving bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note,—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by— Held by private investors E pe nd ri o o d f p T g d u r o e o b t b s a li s t c l ag G t U e a r o u n n .S v c s d i t . t e , s B F a . n R k . s Total m C b e a o r n c m k ia s ­ l s M b a a u v n i t n u k g a s s l p i c n a a o n s n m c u ie e r ­ s ­ c r O a o t t r i h o p e n o r s ­ g S lo a o t n c v a a d t t s e l . Savi I n n g d s i vidu O al t s her n F a i o n a t r i t n o e e d n i r g ­ a n l 1 O i r n t a o v t i h r s e s e e s , ­ r 2 funds bonds securities 1939—Dec............... 41.9 6.1 2.5 33,4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec............... 259. 1 27,4 23.4 208.3 74 5 H.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 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 I 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—July............... 351. J 75.6 52.4 223.1 61.2 3.9 8.1 14. 3 26.7 51.3 23.4 13 1 21.1 Aug............... 354,4 76.9 53,0 224.5 62 1 3.8 8.1 14.5 26.9 51.4 23,6 13 3 20.9 Sept............... 354,7 76.6 53.3 224.9 63 5 3.8 8.1 12.9 26 7 51 .3 23.9 13 4 21.3 Oct................ 357.2 76.2 53.3 227 7 65 3 3.6 8.1 14 0 26 8 51 4 23.6 13 8 21.0 Nov......... 356,9 76.7 53.4 226.9 63.9 3.6 8.0 14.8 26.7 51 .5 23.3 15 0 20,2 Dec............... 358.0 76,6 52.9 228.5 65.5 3.6 8.0 14.6 27.1 51 .5 23.7 14 3 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 21.1 359.5 79.0 52.4 228. 1 60.6 3.6 7.7 17 6 28.1 51 4 25.0 11 8 22.1 Apr............... 358.5 79.8 53.1 225.6 58.6 3.5 7.6 17 0 28.7 51.4 25.2 12 3 21.2 May............. 360. 1 82.7 53,8 223.6 56 4 3.7 7 9 17 4 28.1 51 4 25.4 13 7 19 5 June........ 353.7 84.8 54.1 214 8 54 9 3.3 7.7 15. 1 27.3 51.3 25.1 11.1 H9 1 July............... 357.0 85,1 54.1 217.9 56.0 3.2 7.4 15.8 27.5 51.2 25.7 11.1 19.9 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 (I) exclude guaranteed se­ 2 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

SEPTEMBER 1969 □ U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total ye 1 a -5 rs y 5 e - a 1 r 0 s 1 ye 0 a -2 rs 0 20 O y v e e a r r s Total Bills Other All holders: 1966 Dec. 31...................................................... 218,025 105 218 64 684 40,534 59,446 28,005 8,433 16,923 1967 Dec. 31...................................................... 226,476 104 363 69 870 34'493 78 159 18 >59 8 > 17 16,679 1968 Dec. 31...................................................... 236'812 108 611 75 012 33,599 68,260 35,130 8 >96 16 >15 1969—June 30...................................................... 226’107 103,910 68 356 35,554 62,770 34 >37 8,374 16>17 July 31...................................................... 229^581 107’416 71 863 35 ’553 62,763 34,837 8 >72 16'194 U.S. Govt, agencies and trust funds: 1966—Dec. 31............................................... 1967—Dec. 31............................................... 1968—Dec. 3!............................................... 15 402 2 438 I 034 1 ,404 4,503 2,964 2,060 3,438 16 005 2 304 1013 1 291 4 897 3 >08 2,058 3>37 July 31............................................... 16,206 2’423 1 >95 1 ,328 4,934 3 >54 2,059 3,437 Federal Reserve Banks: 1966—Dec. 31............................................... 44 282 35 360 12 296 23,064 7,502 1 ,007 153 260 1967—Dec. 31............................................... 49 112 31 484 16 041 15 443 16 215 '858 178 377 1968—Dec. 31............................................... 52 937 28'503 18 756 9 747 12 880 10,943 203 408 1969—June 30............................................... 54 095 32’295 19'466 12,829 7,691 13 447 217 444 July 31............................................... 54J38 32'282 I9>43 12,839 7,715 13,471 219 451 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 12 569 156 007 69311 47 877 21 434 50 182 18 082 6 099 12 336 July 31............................................ 159’, 237 72^711 51 *325 21 >86 50*114 18*012 6,094 12 >06 Commercial banks: 1966—Dec. 31....................................... 47 182 15 838 8 771 7 067 21 112 9 343 435 454 1967—Dec. 31....................................... 52, 194 18,451 10315 8 336 26 >70 6,386 485 502 1968—Dec. 31...................................... 53 174 18 894 9 040 9 854 23 157 10 035 611 477 1969—June 30...................................... 44'132 I2’l23 3 ’ 558 8 565 22'715 8 299 562 433 July 31..................................... 45 >25 13 239 4' R00 8 >39 22’732 8 >61 567 427 Mutual savings banks: 1966 Dec. 31.............................. 4 532 645 399 246 1 482 1 139 276 990 1967 Dec. 31....................................... 4 033 716 440 276 1 476 *707 267 867 1968 Dec. 31....................................... 3'524 696 334 362 1117 709 229 773 1969 June 30........................................ 3 * 267 568 275 293 1 160 586 212 742 July 31 ....................................... 6'l91 645 149 496 1 >40 500 1 ,200 2 107 Insurance companies: 1966—Dec. 31....................................... 8 158 847 508 339 1 978 1 581 1,074 2 678 1967—Dec. 31....................................... 7 360 815 440 375 2 056 914 1,175 2 400 1968 Dec. 31....................................... 6 857 903 498 405 1 >92 721 1 120 2 221 1969—June 30....................................... 6' 583 687 214 473 1 >96 601 1 ,283 2116 July 31....................................... 3,222 557 269 288 1 J 29 578 210 >48 Nonfinancial corporations: 1966—Dec. 31...................................... 6 323 4 729 7 396 1 333 I 139 200 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 I 163 568 12 27 1969 June 30....................................... 5,377 3 450 1 619 1 831 1 *457 448 12 10 July 31....................................... 5,701 3,723 1 864 I >59 1 >92 460 17 10 Savings and loan associations: 1 1 9 9 6 6 6 7 — — D D e e c c . . 3 31 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 ,8 5 8 7 3 5 1 7 25 8 5 2 7 5 1 83 8 5 1 3 9 7 9 1 1 7 25 6 1 7 1 > 1 1 0 1 4 2 2 7 8 1 1 4 4 6 7 1 5 1968—Dec. 31...................................... 4 724 I ' 184 680 504 1 675 1 069 346 450 1969—June 30....................................... 4,’472 ‘933 438 495 1 >45 ’ 879 347 467 July 31....................................... 4,302 804 334 470 1 ,801 885 349 464 State and local governments: 1966—Dec. 31....................................... 15,384 5 545 4 512 I 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—June 30....................................... 13,586 j; 805 4^67 1J38 235i 708 1 ,330 3 >92 July 31........................................ 13,592 5 ,976 4,799 1,177 2,420 714 1 ,296 3,185 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—June 30...................................... 78 590 45 745 37'106 8 639 18 658 6 561 2 353 5 276 July 31....................................... 81 ,004 47’,767 39J10 8 >57 18’,800 6>U 2,455 5 >65 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 5,806 commercial banks, 497 mutual savings agencies ana certain Govt, deposit accounts have been removed from U.S. banks, and 753 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All 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 44 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 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 y 1 ea -5 rs y 5 e - a 1 r 0 s 10 O y v e e a r rs U D .S e . a G le o rs v t a , nd b O ro th k e e r rs m C b e a o r n m c k i s a ­ l o A th l e l r securities securities 1968—July............................. 2,448 2,087 244 75 42 949 87 908 504 280 Aug............................. 2’214 1 '705 228 261 20 849 90 790 485 258 Sept............................ 2,133 1,820 180 111 22 824 63 762 484 233 Oct............................... 2,011 1 ,714 165 108 22 732 72 737 470 290 Nov............................ 2’506 2^242 152 77 35 859 83 890 674 243 Dec....................... 2’974 2 ’, 318 391 196 70 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 May............................ 2’286 1 ,852 210 189 35 853 102 781 549 360 June............................ 2,491 2,171 199 86 34 1 ,039 107 849 496 395 July............................. 2^233 1 ^966 172 62 34 ’839 91 822 480 351 Week ending—■ 1969—July 2....................... 3,030 2,698 194 99 41 1 ,167 103 1 ,075 685 461 ' 9....................... 2’210 1 ^966 162 52 31 ’831 93 ’831 455 434 16....................... 2^668 2,345 196 92 36 1 ,035 103 1 ,048 483 362 23'..................... I '643 1 ,454 112 45 32 '599 58 591 395 266 30'..................... 2,042 1.851 122 42 28 762 90 734 456 340 Aug, 6....................... 2,622 2,152 371 61 38 1,11! 129 892 490 338 ~ 13....................... 1 ,’840 1 '583 187 42 29 ’705 89 626 421 193 20..•............... 2 454 2,085 252 62 52 1 093 115 766 477 379 27....................... 2^078 1 ;soo 197 50 33 739 83 809 447 299 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 l! it ies W 1 i y t e h a in r y 1 ea -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 sou A r l c l es 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—July......... 4,420 3,972 159 288 644 Aug......... 5,262 4.097 283 881 732 1968—July........... 4,341 1,193 1,032 1,415 701 Sept......... 5'098 4’043 198 857 687 5,465 1,431 1,372 1,710 952 Oct....... 4'137 3,427 130 580 751 Sept........... 5’519 1 ,596 1,894 1,254 775 Nov......... 3'766 2 948 160 659 652 Oct............ 4,518 1,163 1 '664 ’903 788 Dec......... 4,093 3 606 1 36 352 615 4'191 '877 1,199 1 ,325 791 4’431 1 ,212 886 1 *461 871 1969—Jan.......... 2,918 2,757 0 162 508 Feb......... 2; 389 2^193 34 i6i 449 1969—Jan............ 3,100 737 641 1,310 412 Mar.. .... 2,230 2,119 -37 149 507 Feb............ 2^660 417 361 1 ,311 573 3 J 07 2 997 -60 170 740 2,322 396 370 1 031 526 May........ 2,585 1 ,964 71 550 792 3'392 963 497 1 086 847 June 2,454 1 ,975 56 424 703 May.......... 3'103 542 376 1 072 1,112 July......... 2,250 1 ,901 40 309 626 2’994 717 520 862 896 July........... 2,372 810 363 690 509 Week ending—• Week ending—• 1969—June 4. . 2,635 2,143 7 485 695 II.. 2,474 2,028 16 430 654 1969—June 4... 2,816 611 392 969 844 18.. 2,913 2,453 38 422 676 11 . . . 2,945 462 446 1 ,097 941 25.. 1 ,978 1 ,487 90 402 789 18. . . 3,469 946 704 881 938 25. .. 2,989 890 496 711 893 July 2.. 2,155 I ,649 132 374 681 9. . 1 ,608 1 ,207 93 308 540 July 2... 2,450 610 500 610 731 16. . 2,182 1,857 11 314 504 9. .. 2,131 618 322 626 566 23. . 2,263 1 ,966 -2 299 694 16. 1 ,918 560 251 665 442 30. . 2,803 2,458 43 302 747 23... 2,581 1 ,000 374 765 443 30. .. 2,718 977 453 718 570 Note.—The figures include all securities sold by dealers under repur­ chase contracts regardless of the maturity date of the contract, unless the 1 All business corporations, except commercial banks and insurance contract is matched by a reverse repurchase (resale) agreement or delayed companies. delivery sale with the same maturity and involving the same amount of securities. Included in the repurchase contracts are some that more Note.—Averages of daily figures based on the number of calendar days clearly represent investments by the holders of the securities rather than in the period. Both bank and nonbank dealers are included. See also dealer trading positions. Note to the opposite table on this page. Average of daily figures based on number of trading days in the period. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 31, 1969 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Issue and coupon rate Issue and coupon rate Amount Treasury bills Treasury bills—Cent. Treasury notes—Cont. Treasury bonds—Cont. Aug. 31, 1969.......... 1,506 Jan. 29, 1970............... 1 ,101 Nov. 15, 1971...•••5% 1,734 Feb. 15, 1972.........4 2,344 Sept. 4, 1969............... 2,802 Jan. 31 , 1970............... 1 ,501 Feb. 15, 1972.. ....4’4 2,006 Aug. 15, 1972.........4 2,579 Sept. 11 , 1969............... 2,800 Feb. 5, 1970............... 1 ,203 Apr. 1, 1972.. ....1’4 34 Aug. 15, 1973..........4 3,894 Sept. 18, 1969............... 2,701 Feb. 13, 1970................ 1,199 May 15, 1972.... ..4’4 5,310 Nov. 15, 1973..........4% 4,348 Sept. 25, 1969............... 2,701 Feb. 19, 1970............... 1 ,202 Oct. 1, 1972.. ....1>4 33 Feb. 15, 1974.........4H 3,128 Sept. 30, 1969............... 1 ,501 Feb. 26, 1970................ 1 ,201 Apr. 1, 1973...■.. I 'A 34 May 15, 1974..........4% 3,585 Oct. 2, 1969............... 2,701 Feb. 28, 1970............... 1 ,501 Oct. 1, 1973. . .1'4 30 Nov. 15, 1974..........3% 2,240 Oct. 9, 1969............... 2,701 Mar. 23, 1970f............. 1 ,752 Apr. 1, 1974......1'4 8 May 15, 1975-85.. .4% 1 ,214 Oct. 16, 1969............... 2,703 Mar. 31 , 1970 ............... 1 ,501 Aug. 15, 1974...■ .sy, 10,284 June 15, 1978-83... 3 >A 1 ,557 Oct. 23, 1969.............. 2,703 Apr. 30, 1970 ............... 1 ,501 Nov. 15, 1974.. ....5*4 3,981 Feb. 15, 1980.........4 2,598 Oct. 30, 1969.............. 2,701 May 31, 1970 ........ . 1 ,000 Feb. 15, 1975......5’4 5,148 Nov. 15, 1980..........3>A 1,906 Oct. 31, 1969............... 1,502 June 30, 1970............... 1 ,201 May 15, 1975.... . .6 6,760 May 15, 1985..........3% 1 ,095 Nov. 6, 1969............... 2,902 July 31, 1970................ 1 ,202 Feb. 15, 1976......6'4 3,726 Aug. 15, 1987-92...4% 3,815 Nov. 13, 1969.............. 2,890 May 15, 1976......6'4 2,697 Feb. 15, 1988-93...4 249 Nov. 20, 1969............... 2,902 Treasury notes May 15, 1989-94... 4% 1 ,558 Nov. 28, 1969............... 2,900 Oct. 1, 1969........1>A 159 Treasury bonds Feb. 15, 1990..........3»A 4,841 Nov. 30, 1969............... 1 ,501 Apr. 1, 1970........PA 88 Dec. 15, 1964-69. 2,484 Feb. 15, 1995.........3 1 ,459 Dec. 4, 1969.............. I ,301 May 15, 1970.......5% 7,793 Mar. 15, 1965-70. 2,281 Nov. 15, 1998..........3’A 4,249 Dec. 1 1 , 1969.............. 1 ,301 May 15, 1970........6% 8,759 Mar. 15, 1966-71. 1,221 Dec. 18, 1969.............. 1 ,101 Aug. 15, 1970........6% 2,329 June 15, 1967-72. I ,242 Dec. 22, I969f............ I ,763 Oct. 1, 1970........PA 113 Sept. 15, 1967-72. 1,951 Dec. 26, 1969.............. 1,100 Nov. 15, 1970........5 7,675 Dec. 15, 1967-72. 2,587 Dec. 31, 1969.............. 1 ,500 Feb. 15, 1971........5^ 2,509 Oct. 1,1969.... 6,240 Jan. 2, 1970.............. 1,100 Feb. 15, 1971 . . ..7’A 2,931 Feb. 15, 1970.... 4,381 Jan. 8, 1970............... 1 ,102 Apr. 1, 1971........PA Aug. 15, 1970.... 4,129 Convertible bonds Jan. 15, 1970............... 1,101 May 15, 1971........5% Aug. 15. 1971.... 2,806 Investment Series B Jan. 22, 1970.............. 1,101 Oct. 1, 1971.........PA Nov. 15, 1971.. . . 2,760 Apr. 1, 1975-80... 2% 2,457 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Use of proceeds Total amount Period deliv­ Total G g o a e a b t n i l o l e i n ­ r­ s R n e u v e e­ HAA1 G l U o o a .S v n . t s , State S d p i s a s t e n t a c r d t i i , c a t l Other2 ered 3 Total c E a d tio u n ­ b R r a i o d n a g d d e s s i U tie ti s l­ 4 H in o g u s s­ V a e 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 5^55 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2’369 1964................. 10^847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965................. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1 ,965 626 50 3,311 1966................. 11,405 6,804 3,955 325 312 2'590 4,110 4,695 n.a. 11,303 3,738 1,476 1,880 533 3,667 1967................. 14,766 8,985 5,013 477 334 2',842 4,810 7,115 n.a. 14,643 4,473 1 ,254 2,404 645 5,867 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 4 1968-—July,... 1,469 813 637 20 257 597 615 n.a. 1 ,466 396 1 14 282 3 670 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 8 671 Oct....... 2,230 1 ,437 773 20 617 819 791 n.a. 2^227 732 374 407 21 686 Nov...... 1,021 585 320 111 6 223 324 473 n.a. 997 271 25 115 120 465 Dec...... 1 ’140 337 781 22 20 415 706 n.a. 1,138 169 46 196 24 707 1969-—Jan....... 1 ,263 942 310 11 546 286 432 n.a. 1 ,262 362 165 169 5 562 Feb....... 988 461 378 143 7 144 477 367 n.a. 986 246 222 171 143 202 Mar.. .. 540 325 204 11 110 149 282 n.a. 541 260 95 71 5 112 Apr...... 1,800 I ,008 783 9 539 738 522 n.a. 1,797 362 37 302 1 ,091 May.. <. 1,113 637 275 177 23 266 342 504 n.a. 1,099 327 109 117 191 355 June.... 711 497 178 37 84 152 477 n.a. 703 235 44 138 1 285 July’. .. 1,063 818 235 10 405 234 423 n.a. 1,062 278 168 102 6 508 i Only bonds sold pursuant to 1949 Housing Act, which are secured 5 Includes urban redevelopment loans. by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. Note.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt, loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt, loans. and payment to issuer, which occurs after date of sale. Investment Bankers Assn, data; par amounts of long-term issues 4 Water, sewer, and other utilities. based on date of sale unless otherwise indicated. Components may not add to totals due to rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 46 SECURITY ISSUES □ SEPTEMBER 1969 TOTAL NEW ISSUES (In millions of dollars) Proposed use of net proceeds, Gross proceeds, all issues 1 all corporate issues 6 Noncorporate Corporate New capital Re­ Period Bonds Stock tire­ Total G U o . v S t . .2 G a U c g o y e v S n 3 t . ­ , lo S U a c t n . a a S d t l e . « Other 5 Total Total o P f l f ic e u l r 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 Total m N on e e w y 7 O p p o t u s h e r e ­ s r m s ri e t o e i c e f n u s t ­ 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 10,821 1,168 10,107 887 12,211 10,856 4,713 6,143 343 1,011 12,049 10,523 8,898 1,625 1,526 1964.................. 37,122 10,656 1,205 10,544 760 13,957 10,865 3.623 7,243 412 2,679 13,792 13,038 11,233 1,805 754 1965.................. 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 15,801 14,805 13,063 1,741 996 1966.................. 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 17,841 17,601 15,806 1,795 241 1967.................. 68,514 19,431 8,180 14,288 1 ,817 24,798 21,954 14,990 6,964 885 1,959 24.409 24,097 22,233 1,867 312 1968.................. 65,562 18,025 7,666 16,374 1 ,531 21,966 17,383 10,732 6,651 637 3,946 n.a. n.a. n.a. n.a. n.a. 1968—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 I ,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. Apr........ 5,780 412 981 1 ,627 12 2,748 1 ,917 1 ,268 649 68 762 n.a. n.a. n.a. n.a. n.a. May....... 4,608 410 950 1 ,088 85 2,076 1 ,382 871 510 10 684 n.a. n.a. n.a. n.a. n.a. June....... 4,007 420 351 710 45 2,480 1 ,736 1 ,272 464 50 694 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 e l o u a s nd Transportation Public utility Communication a R nd e a f l i r e ta s n ta c t i e a l Period Retire­ Retire­ Retire­ Retire­ Retire­ Retire­ New ment of New ment of New ment of New ment of New ment of New ment of capital8 secu­ capital * secu­ capital8 secu­ capital8 secu­ capita!8 secu­ capital8 secu­ rities rities rities rities rities rities 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 (Jan.-Sept.)9 .... 5,106 46 2,232 17 1 ,286 2 3,738 52 1,422 9 1 ,756 16 1968—Anr 353 11 317 * 203 178 189 1 146 May.................................. 550 1 175 106 2 549 103 * 341 i June.................................. 750 5 394 154 474 27 237 326 1 July.. .. ..... 818 5 401 2 204 236 235 195 Aug.. .............................. 349 212 1 110 438 92 2 193 Sept.9 ..................... 432 3 208 ♦ 108 469 155 125 12 > Oross proceeds arc derived by multiplying principal amounts or 6 Estimated gross proceeds less cost of flotation. number of units by offering price. 7 For plant and equipment and working capital. 2 Includes guaranteed issues. 8 All issues other than those for retirement of securities. 3 Issues not guaranteed. 9 Figures not available after Sept. 1968. 4 Sec Note to table at bottom of opposite page. s Foreign governments, International Bank for Reconstruction and Note.—Securities and Exchange Commission estimates of new issues Development, and domestic nonprofit organizations. maturing in more than 1 year sold for cash in the United States. 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SEPTEMBER 1969 □ SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire­ Net New Retire­ Net issues ments change issues ments change In c v o e s s .i t, Other In c v o e s s .1 t. Other In c v o e s s .1 t. Other 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 1968....................... 39,271 16,234 26,078 19,381 5,418 13,962 9,945 6,057 3,857 6,959 6,088 -900 1968—Ir............... 8,983 3,021 5,172 3,997 I ,286 2,71 1 2,493 1 ,230 823 912 1 ,670 319 IP............. 8,870 3,933 6,665 5,124 1 ,308 3,816 1 ,873 1 ,424 1 ,053 I ,572 820 -147 nr........... 8,986 4,112 6,324 4,732 1 ,249 3,482 2,127 1 ,421 949 1 ,914 1 ,178 -493 ivr........... 12,432 5,168 7,917 5,528 1,575 3,953 3,452 I ,982 1 ,032 2,561 2,420 -579 1969—I................. 11,945 4,520 8,043 4,949 1 .272 3,676 3,498 2,184 1 ,065 2,183 2,433 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation J utility cation and financial 4 & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B 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 1964....................... 1 ,303 -516 507 -483 317 -30 1 ,408 476 458 1 ,699 2,644 2,753 1965....................... 2,606 -570 614 -70 185 -1 1,342 96 644 518 2,707 3,440 1966....................... 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 4,414 1967....................... 7,237 832 1,104 282 1,158 165 3,444 652 1 ,716 467 1,302 4,178 1968...................... 4,418 -2,214 2,242 I ,080 987 -149 3,669 892 1 ,579 120 1 ,069 5,347 1968—Ir............... 991 -60 191 112 170 -26 956 309 295 31 109 1,624 in............ 1 ,550 -127 375 371 260 10 818 244 524 33 288 143 lip........... 1 ,210 -484 716 -123 300 -62 585 187 491 6 181 1,161 IVr............. 667 — 1,171 960 461 257 -7! 1,310 152 269 50 491 2,419 {969—I................. 1 ,458 -372 360 259 539 75 674 331 405 45 239 2,096 1 Open-end and closed-end companies, exclude foreign and include offerings of open-end investment companies, 2 Extractive and commercial and misc. companies. sales of securities held by affiliated companies, special offerings to em­ 3 Railroad and other transportation companies. ployees, and also new stock issues and cash proceeds connected with 4 Includes investment companies. conversions of bonds into stocks. Retirements include the same types of issues, and also securities retired with internal funds or with proceeds of Note.—Securities and Exchange Commission estimates of cash trans­ issues for that purpose shown on opposite page. actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C s a it s io h n 3 Other Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C s a it s io h n3 Other 1957.............. 1,391 406 984 8,714 523 8,191 1968—July. . 582 344 237 47 342 3 113 44 229 1958............. I '620 511 1,109 13,242 634 12,608 Aug... 531 309 222 48 470 3 459 45’011 1959.............. 2; 280 786 1,494 15318 860 14,958 Sept... 494 292 202 51’030 3’747 47'283 Oct.... 653 396 257 51 ,’633 3^384 48*249 1960............. 2,097 842 1.255 17,026 973 16,053 Nov... 688 313 375 54 860 3 413 51 447 1961............. 2’951 1,160 1,791 22’789 980 21’809 Dec.. . 653 319 354 52*677 3 187 49,490 1962............. 2,699 1,123 1,376 21,271 1,315 19,956 1969—Jan.... 876 397 479 53,323 3,831 49,492 1963 .............. 2,460 1,504 952 25,214 1,341 23,873 Feb... 625 379 246 50 512 3 880 46 632 1964.............. 3'404 1’875 1,528 29’116 1 329 27’787 Mar... 628 285 343 51’663 4 331 47 332 1965.............. 4,359 1,962 2,395 35'220 1.803 33,417 Apr... 654 348 306 52,787 4,579 48,208 May.. 529 364 165 52^992 4,262 48,730 1966............. 4,671 2,005 2,665 34,829 2,971 31,858 June.. 474 338 136 49 401 3 937 45 464 1967.............. 4',670 2,745 1 ,927 44’701 2’, 566 42,135 July... 503 260 243 46*408 4 J 67 42*241 1968 ............. 6’820 3,841 2; 979 52^677 3,187 49^490 1 Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, all U.S, Govt, securities, and other and contractual accumulation plan sales, and reinvestment of invest­ short-term debt securities, less current liabilities. ment income dividends; excludes reinvestment of realized capital gains dividends. Note.—Investment Company Institute data based on reports of mem­ 2 Market value at end of period less current liabilities. bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 48 BUSINESS FINANCE □ SEPTEMBER 1969 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1967 1968 1969’ Industry 1964 1965 1966 1967 1968 III IV I II HI IV lr II Manufacturing Total (177 corps.): Sales............................................. 158,253 177,237 177,738 201,399 225,740 48,317 52,818 53,633 57,732 53,987 60,388 57,613 61 ,392 Profits before taxes...................... 18,734 22,046 23,487 20,898 25,375 4,232 5,867 5,985 6,878 5,580 6,932 6,565 6,887 Profits after taxes........................ 10,462 12,461 13,307 12,664 13,787 2,268 3,268 3,298 3,609 3,030 3,850 3,579 3,750 Dividends..................................... 5,933 6,527 6,920 6,989 7,271 1,721 1,897 1,716 1 ,731 1 ,746 2,078 1,838 1 ,916 Nondurable goods industries (78 corps.):2 Sales............................................. 59.77C 64,897 73,643 77,969 84,861 19,695 19,996 20,156 21,025 21.551 22,129 21,764 23,198 Profits before taxes...................... 6,881 7,846 9,181 9,039 9,866 2,209 2,427 2,387 2,492 2,545 2,442 2,524 2,664 Profits after taxes........................ 4,121 4,786 5,473 5,379 5,799 1,313 1,431 1 ,428 1,411 1,471 1 ,489 1 ,492 1 ,559 Dividends..................................... 2,408 2,527 2,729 3,027 3,082 770 781 743 751 763 825 812 808 Durable goods industries (99 corps.):3 Sales............................................. 98,482 112,341 122,094 123,429 140,879 28,622 32,821 33,477 36,707 32,435 38,259 35,849 38,195 Profits before taxes...................... 11,853 14,200 14,307 11,822 15,510 2,024 3,440 3,598 4.386 3,036 4,490 4,041 4,224 Profits after taxes........................ 6,341 7,675 7,834 6,352 7,989 J ,068 1,838 1 ,871 2,198 J , 559 2,361 2,087 -2,190 Dividends..................................... 3,525 4.000 4,191 3,964 4,189 952 1,117 972 981 983 1 ,253 1 ,026 1,108 Selected industries: Foods and kindred products (25 corps.): Sales............................................. 15,284 16,427 19,038 20,134 22,109 5,131 4,980 5,184 5,389 5,737 5,799 5,714 5,923 Profits before taxes...................... 1.579 1,710 1 .916 1 ,967 2,227 526 512 498 563 590 576 534 581 Profits after taxes........................ 802 896 1 ,008 1 ,041 1 ,093 284 268 255 260 285 293 261 275 Dividends.................................... 481 509 564 583 616 146 145 150 155 155 156 162 165 Chemical and allied products (20 corps.): Sales............................................. 16,469 18,158 20,007 20,561 22,808 5,117 5,284 5,436 5,697 5.782 5,893 5,845 6,230 Profits before taxes...................... 2,597 2,891 3,073 2,731 3,117 636 701 760 807 806 744 844 875 Profits after taxes........................ 1 .400 1,630 1 .737 1 ,579 1 ,618 363 416 390 419 412 398 448 473 Dividends..................................... 924 926 948 960 1 ,002 235 252 236 236 243 287 252 251 Petroleum refining (16 corps.): Sales............................................. 16,589 17,828 20,887 23,258 24,218 5.985 6,075 5,890 6,013 6,100 6,214 6,107 6,610 Profits before taxes...................... 1,560 1.962 2,681 3,004 2,866 744 835 767 692 740 667 726 728 Profits after taxes......................... 1,309 1,541 1,898 2,038 2,206 504 540 592 520 561 534 562 558 Dividends..................................... 672 737 817 1 .079 1,039 286 281 253 255 258 273 282 273 Primary metals and products (34 corps.): Sales............................................. 24,195 26,548 28,558 26,532 30,171 6,525 6,166 7,150 8,427 7,461 7,133 7,671 8,612 Profits before taxes...................... 2,556 2,931 3,277 2,487 2,921 477 647 669 915 601 735 691 828 Profits after taxes........................ 1 ,475 1 ,689 1 ,903 1 .506 1 .750 290 410 376 550 343 482 431 504 Dividends..................................... 763 818 924 892 952 228 228 224 230 233 264 242 245 Machinery (24 corps.): Sales............................................. 22,558 25,364 29.512 32,721 35,660 8,994 8,994 8,371 8,864 8,907 9,517 8,957 9,757 Profits before taxes...................... 2,704 3,107 3,612 3.482 4,134 837 970 936 1 ,008 1,112 1 ,079 1 ,071 1,167 Profits after taxes........................ 1,372 1 ,626 1 .875 1 .789 2,014 438 513 448 499 537 531 526 576 Dividends.................................... 673 774 912 921 992 227 229 247 248 248 249 270 271 Automobiles and equipment (14 corps.): Sales............................................. 35,338 42,712 43,64! 42.306 50,526 8,354 11,664 12,343 13,545 9,872 14,767 13,328 13,638 Profits before taxes...................... 4,989 6,253 5,274 3,906 5,916 216 1.204 1 ,507 1 ,851 640 1,918 1 ,663 1 ,542 Profits after taxes........................ 2,626 3,294 2,877 1 ,999 2,903 62 572 783 847 330 943 806 750 Dividends..................................... 1 ,629 1 .890 1 ,775 1.567 1 .642 362 477 364 364 364 550 365 436 Public utility Railroad: Operating revenue....................... 9,778 10,208 10,661 10,377 10,855 2,531 2,676 2,610 2.757 2,707 2,781 2,741 Profits before taxes...................... 829 979 1 ,094 385 634 92 -13 126 206 116 186 128 Profits after taxes......................... 694 815 906 319 568 87 -31 110 175 108 174 98 Dividends..................................... 440 468 502 538 517 103 155 116 136 98 166 116 Electric power: Operating revenue....................... 14,999 15,816 16,959 17,954 19,421 4,417 4,537 5,106 4,553 4,869 4,892 5,480 4,913 Profits before taxes...................... 3,926 4,213 4,414 4,547 4,789 1,155 1 ,088 1,351 1 ,040 1 ,271 1,125 1 ,384 1 ,065 Profits after taxes........................ 2,375 2,586 2,749 2.908 3,002 717 728 863 641 764 733 873 707 Dividends..................................... 1,682 1 ,838 1 ,938 2,066 2,201 513 529 539 555 543 565 580 577 Telephone: Operating revenue....................... 10,550 11,320 12,420 13,311 14,430 3,341 3,429 3,486 3,544 3,629 3,771 3,853 3,975 Profits before taxes...................... 3,069 3,185 3,537 3,694 3,951 953 949 971 989 990 1 ,001 1,070 1 ,043 Profits after taxes........................ 1,590 1 ,718 1 ,903 1 .997 1 ,961 515 513 525 441 493 502 540 523 Dividends..................................... 1 ,065 1 , 153 1,248 1,363 1 ,428 341 351 351 318 396 363 368 371 ’Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federal Reserve to include accounting methods and other reporting procedures. 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 two affiliated telephone companies. Dividends are for the 20 Railroads: Interstate Commerce Commission data for Class I line­ operating subsidiaries and the two 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

SEPTEMBER 1969 □ BUSINESS FINANCE A 49 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year 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 te e fi s t r s d C d e a i n v s d i h ­ s tr U 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 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 te e fi s t r s d C d e a i n v s d i h ­ s tr U 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 n u i w t m a ­ l p ­ ances1 ances 1 1961............. 50.3 23.1 27.2 13.8 13.5 26,2 1967—IV. 84.4 34.5 49.9 21.1 28.8 43.8 1962............. 55.4 24.2 31.2 15.2 16.0 30.1 1963 ............. 59.4 26.3 33.1 16.5 16.6 31.8 1968—1. . .. 87.9 39.9 47.9 22.2 25.7 44.8 1964............. 66.8 28.3 38.4 17.8 20.6 33.9 II... . 90.7 41.1 49.7 22.9 26.7 45.8 III. .. 91.5 41.4 50.0 23.6 26.5 46.2 1965 ............. 77.8 31.3 46.5 19.8 26.7 36.4 IV. .. 94.5 42.9 51.6 23.8 27.8 46.7 1966............. 84.2 34.3 49.9 20.8 29.1 39.5 1967............. 80.3 33.0 47.3 21,5 25.9 42.6 1969—I. . . . 95.5 r43.4 r52.2 23.8 r28.4 47.7 1968............. 91.1 41.3 49.8 23.1 26.7 45.9 IP... 94.7 43.1 51.6 24.3 27.3 48.6 I Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Nel Notes and accts, Notes and accts, End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t, i­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 1962............................. 155.6 326.5 43.7 19.6 3.7 144.2 100.7 14.7 170.9 2.0 119.1 15.2 34.5 1963............................. 163.5 351.7 46.5 20,2 3.6 156.8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964............................. 170.0 372.2 47.3 18.6 3.4 169.9 113.5 19.6 202.2 2.7 140.3 17.0 42.2 1965............................. 180.7 410.2 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—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—1........................ 206.0 471.4 50.1 14.6 4.8 216.6 156.6 28.7 265.4 6.1 181.9 17.3 60.2 n...................... 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 in..................... 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 1969—1........................ 216.7 516.4 52.8 15.7 4.8 239.8 170.9 32.3 299.7 6.9 203.0 19.9 69.8 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 du N r 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 1 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 I 9692r.................................... 70 85 15,43 14 25 1.56 1.47 4.52 12.74 7 55 13 33 1967—IV................................ 17.05 3.82 3.48 .39 .36 1.07 2.92 1.62 3 39 62.70 1968—J.................................. 14.25 2.96 2.82 .36 .37 .98 2.33 1.48 2 93 64.75 n 15.86 3.22 3 28 .36 .36 1 04 2.97 1 51 3 11 62.60 in............................ 16.02 3.37 3.25 .34 .30 1.12 2.96 1.50 318 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 ................................. 17 73 3.83 3 52 41 . 35 I 14 3.38 1 86 323 70 20 HP'............................ 18.16 3.91 3 64 41 . 40 I 12 3 35 5.31 72 25 IW.............................. 19.76 4.43 4.14 .38 .40 1.20 3.34 5.88 72.10 i Includes trade, service, finance, and construction. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business, excluding agriculture. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT □ SEPTEMBER 1969 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage holders2 commercial properties5 type6 E pe n r d io o d f h e A o r l l s d l ­ tu F i t n c i i n o i s a a n t l i n s ­ ­ 1 a U g . e S n . ­ vi I d a n n u d d a i ­ ls h A e o r l s l d l ­ tu F i t n c i i n o s ia a n t l i n s ­ ­ 1 O h e o t r h s ld e J ­ r h A e o r l s l d l ­ Total F in in s a ti n ­ , O ho th ld e ­ r Total F in in s a t n i­ . O ho th ld er ­ F u V H nd A A e - — r ­ C ve o n n ­ ­ cies tutions i ers tutions1 ers tional others written 1941......... 37.6 20.7 4.7 12,2 6.4 1 .5 4.9 31.2 18.4 H.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 1 8.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204 0 1965 ......... 325.8 264.6 12.4 48 7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 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 84.1 240.0 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 88.2 256.6 1968”........ 397.5 319,9 21.7 55 9 27.5 9.7 17.8 370.0 251,2 213,1 38.1 1 18.7 97.1 21.6 92 8 277 2 1967—I p... 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 84.4 242.4 IP.. 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 85,3 246.6 IIIp. 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 .9 1 Vp. 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 88.2 256.6 1968—P... 375.8 302.6 19.6 53.5 26.0 9.3 16.7 349.8 239.1 203,7 35.4 110.6 89.6 21.0 89.4 260.4 IIP.. 382.9 308.1 20.6 54.2 26.7 9.6 17.1 356.1 243,2 206.7 36.5 112.9 91.7 21.2 90.7 265.4 IIIP. 389.8 313.5 21 . 1 55.1 27.2 9.6 17.5 362.6 247.0 209,7 37.3 115.6 94.1 21.5 92.0 270.6 IVp. 397.5 319.9 21.7 55.9 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 92.8 277.2 1969—Ip... 403.7 324,7 22.6 56.4 28.0 9.7 18.3 375.7 254.8 215.8 39.0 120.9 99.2 21.7 94.5 281.2 i Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by saving trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. and loan assns. 6 Data by type of mortgage on nonfarm I - 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 J 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 totaj residential properties, see p. A-52. 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 Tota 1 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.............................. 49 675 32'387 7 702 2’688 21 ,997 14’377 2 911 44’617 40 096 13791 11 408 14 897 4 469 52 1966.............................. 54 380 34 876 7’544 2 599 24’733 16’366 3 ’ 1 38 47,337 42*242 14 500 11 471 16*272 5 041 53 1967.............................. 59 019 37 642 7 709 2,696 27^237 17,931 3 446 50’490 44 641 15 074 11 795 17’772 5 732 117 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—111...................... 53 606 34,469 7 687 2,620 24,162 16 028 3 109 46,622 41,673 14,274 Il 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 14500 LI 471 16 272 5 041 53 1967—1......................... 54,531 34,890 7 444 2,547 24,899 16,468 3,173 48,107 42 879 14,723 11,619 16,537 5 176 52 II....................... 55’731 35’487 7 396 2'495 25’596 16 970 3’274 48’893 43 526 14 947 11 768 16 811 5 316 51 HI...................... 57 482 36 639 7*584 2.601 26 454 17 475 3 368 49 732 44*094 15 016 11 785 17 293 5 526 112 IV...................... 59 019 37,642 7’709 2 696 27’237 17 931 3 *446 50 490 44*641 15*074 11*795 17 ’ 772 5 ’732 117 1968—1......................... 60 119 38 157 7 694 2 674 27 789 18 396 3 566 51 218 45 171 15 179 11 872 18 120 5 931 116 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 in.................... 63,779 40 251 7 *768 2,657 29,826 19 771 3,757 5 2 ’ 496 46 051 15'367 11*945 18 739 6*329 116 IV...................... 65 696 41,433 7^926 2,708 30,800 20 505 3 758 53 456 46 748 I5;569 12*033 19*146 6* 592 117 1969—1......................... 67,146 54,178 i Includes loans held by nondeposit trust companies, but not bank States and possessions. First and third quarters, estimates based on FDIC trust depts. data for insured banks for 1962 and part of 1963 and on special F.R. inter­ 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. polations thereafter. For earlier years, the basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from Note.—Second and fourth quarters, Federal Deposit Insurance Corpo­ the National Assn, of Mutual Savings Banks. ration series for all commercial and mutual savings banks In the United Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 a REAL ESTATE CREDIT A 51 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Non fa rm Nonfarm Period Total Total in F s H ur A e - d a g n V u te A a e r - ­ d Other 1 Farm Total Total in F s H ur A e - d a g n V u te A a e r - ­ d Other Farm 1945............................................. 976 6,637 5,860 1,394 4,466 766 1961............................................. 6,785 6,233 1,388 220 4,625 552 44,203 41,033 9,665 6,553 24,815 3,170 1962............................................. 7'478 6'859 1,355 469 53)35 619 46^902 43,502 10,176 6; 395 261931 3'400 1963............................................. 9'172 8,306 1,598 678 6'030 866 50,544 46,752 10,756 61401 29,595 3’792 1964............................................. 10’433 9'386 1'812 674 6'900 1,047 55,152 50^848 11,484 6’403 321961 4’304 1965............................................. 11,137 9,988 1 ,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966............................................. 10’217 9,223 1 ,’300 467 7^456 ’994 64,609 59^369 121351 6,201 40,817 51240 1967............................................. 8’470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43'664 5,569 1968............................................. 7,925 7’,153 719 346 6,088 772 69^973 64 J 72 111961 5’954 46’257 5’801 1968—June r................................ 576 528 53 21 454 48 68 483 62,764 12 059 6 050 44,655 5 719 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 61002 45'429 5,778 Nov................................... 623 589 62 29 498 34 69^407 631627 11'999 51993 45,635 5 780 Dec................................... 1 ,207 1,123 84 29 1 ,010 84 70 071 64,268 12 015 5’982 461271 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 Apr................................... 607 549 48 24 477 58 70,661 64 855 11 924 5’919 47 ,012 5 806 May.. .............................. 556 496 55 19 422 60 70 820 64,993 11'903 5 ,900 47 J 90 5 827 June.................................. 556 498 55 20 423 58 70,964 65,114 11 ,882 5,879 47,353 5,850 1 Include mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value of ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end Note.-—Institute of Life Insurance data. For loans acquired, the adjustments are more complete. monthly figures may not add to annual totals; and Cor loans outstanding 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’ New Total Short­ Long­ Period home Home FHA- VA- Con­ term 1 term 2 Total 1 con­ pur­ Total 2 in­ guar­ ven­ struc­ chase sured anteed tional tion [945...................... 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 1962.................. 4,111 3’294 3,479 2,005 1,474 1,213 1963.................. 51601 4,296 4,784 21863 1 1921 1 ’ 151 1961............. 17,733 5,212 7,317 68 834 4,167 7,152 57,515 1964...................... 5,565 51025 5'325 2,846 2,479 I ’ 199 1962............. 21,153 6'115 8’650 78,770 4,476 7’010 67,284 1963............. 25,173 7.185 10'055 90’944 4,696 6’960 79,’288 1965...................... 5,007 4,335 5,997 3,074 2,923 1,043 1964............. 24,913 6'638 10'538 101 333 4’894 6*683 89,756 1966...................... 3',804 2,866 6’935 5'006 1 ,’929 1 ’,036 1967...................... 1,527 4,076 4’386 3,985 '401 1,432 1965............. 24,192 6,013 10,830 110 306 5,145 6,398 98,763 1968........... ....... 2’734 1 ’,861 5 259 4 867 392 1’382 1966............. 16’924 3,653 7,828 114,427 5 269 6,157 103,001 1967............. 20,122 4S243 9’604 1211805 5^791 6,351 109;663 1968-—July........... 334 235 4,988 4,535 453 1,184 1968............. 21 ’983 4'916 11,215 130’782 6 658 7'012 117,112 Aug............ 198 188 4’997 4,561 437 1,174 Sept........... 165 136 5,026 4,603 423 1,251 1968—July... 1,859 400 1 ,038 126,618 6,177 6,631 113,810 Oct........ 173 164 5'035 4,627 407 1,285 Aug... 1 ,995 414 1,156 127,492 6,279 6,689114,524 Nov........... 155 150 5’040 41643 397 1’321 Sept... 1 ,840 396 984 128,302 6,370 6,753 115,179 Dec............ 301 81 51259 4'867 392 1 '382 Oct.... 1 ,949 466 995 129,147 6,459 6,845 115,843 Nov... 1,724 392 868 129,879 6,529 6,919 116,431 1969-—Jan............. 277 179 5,357 4,975 382 1,110 Dec... I ,886 407 869 130,782 6,658 7,012 117,112 Feb............ 120 178 5’298 4,940 358 1,130 Mar........... 155 122 5’331 4'983 349 1 '243 1969—Jan.... 1 ,592 348 783 131,404 6,748 7,074 117,582 Apr............ 545 113 5,764 5,423 341 1’178 Feb.. . 1,580 364 767 132,075 6,857 7,129 118,089 May....... 327 120 5 1971 51647 324 1 '201 Mar., . 1 ,870 440 896 132,992 6,972 7,194118,826 June........... 514 72 6 413 6,054 359 1 ’276 Apr... 2,073 485 1 ,023 134,018 7,120 7,271 119,627 July........... 759 118 7,053 6,564 489 927 May. . 2,146 482 1 ,113 135,006 7,245 7,354 120,407 June.. 2,415 495 1 ,345 136,222 7,402 7,408 121,412 July*. 1 ,979 421 1 ,097 137,092 7,530 7,470 122,092 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. t Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. 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 52 REAL ESTATE CREDIT □ SEPTEMBER 1969 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) All residential Multifamily > Governmentunderwritten Con­ E pe n r d io o d f Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F i H n A ­ - g V u A a - r ­ ti v o e n n a ­ l tutions tutions sured anteed 1 1 1 9 9 4 4 1 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 24 4 . . 3 2 1 1 4 5 . . 9 7 9 8 . . 4 6 5 5 . . 8 7 3 3. . 5 6 2 2 . . 2 2 1 19 9 6 5 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 18 2 .2 6 6 4 5 .9 3 35 4 0 1 30 J 9 I 11 1 6 4 3 3 1963 .............. 211.2 176.7 34.5 29 0 20 7 8 3 1964.............................. 197 6 69 2 38 3 30 9 128 3 1964.............. 231.1 195.4 35.7 33.6 25.1 8 5 1965 ...................... 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 8 313 147 6 1 1 9 9 6 6 6 7 ^ . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 6 8 4 0 . . 0 0 2 2 2 3 3 6 . . 7 6 4 4 0 3 . . 3 4 4 43 0 9 3 3 3 1 4 7 5 9 8 8 2 1 1 9 9 6 6 7 8 p P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 5 36 1 . . 1 2 7 83 9 9 8 4 5 7 0 4 6 3 32 3 * 5 2 1 1 5 6 6 7 I 4 1968p............. 298.6 250. 8 47.8 47.3 37 7 9 6 1966—HI....................... 221.9 75 4 44 4 31 0 146 ^ 1966—III ... 261.6 222.1 39.5 39.7 31 .0 8.7 IV....................... 223.6 76 1 44 8 31 3 1 47 6 IV .... 264.0 223.7 40.3 40.3 31 .5 8.8 1967—1"....................... 224 9 76 4 45 2 31 2 148 4 1967—P........ 265.9 225.0 40.9 41 .0 32.2 8.8 IIP...................... 227 8 77 2 45 7 31 5 1 50 6 IIP.... 269.7 228.3 41 .4 41.9 32.9 8.9 HIP..................... 232 0 78 3 46 6 317 153 7 IIP. . . 274.8 232.5 42.3 42.8 33.8 9.0 IV"..................... 236 1 79 9 47 4 32 5 156 1 IIIp. . . 280.0 236.6 43.4 43.9 34.7 9.2 1968—Ip....................... 239.1 81 .0 48.1 32 9 158 1 1968—Ip........ 283.7 239.0 44.7 44.6 35 3 9 3 IIP...................... 243.2 82.1 48 7 33 4 161 1 IIP.. . . 288.6 242.7 45.9 45.3 35.9 9^4 HI"..................... 247.0 83 2 49.6 33 6 163 8 IIIP. . . 293.3 246.4 46,9 46.2 36.7 9.5 IVp..................... 251.2 83 8 50 6 33 2 167 4 IVp. . .. 298.6 250.8 47.8 47.3 37.7 9.6 1969—I p....................... 254.8 85.3 51.4 33.9 169,5 1969-Ip........ 302.9 254.1 48.8 48.1 38.3 9.8 1 Includes outstanding amount of VA vendee accounts held by private i Structures of 5 or more units. investors under repurchase agreement. Note.—Based on data from same source as for “Mortgage Debt Out­ Note.—For total debt outstanding, figures are FHLBB and F.R. standing” table (second preceding page). 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 (In millions of dollars) FHA-insured VA-guaranteed DELINQUENCY RATES ON HOME MORTGAGES Mortgages Mortgages (Per 100 mortgages held or serviced) Period Prop­ Pro­ erty Total h N o e m w e s h is o E t m i x n ­ e g s jects 1 m p i r e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n e ­ g s Lo b a u n t s d n e o li t n q in u e fo n r t e f c o lo r s — ure Lo f a o n re s ­ in End of period closure 90 days 1945........... 665 257 217 20 171 192 Total 30 days 60 days or more 1963........... 7.216 1,664 3,905 843 804 3 045 1 272 1 770 1964........... 8,130 1,608 4,965 895 663 2*846 1 023 1 *821 1963............... 3.30 2.32 .60 .38 .34 1965........... 8,689 1 ,705 5,760 591 634 2 652 876 1 774 1964............... 3.21 2.35 .55 .31 .38 1966........... 7,320 1 ^729 4^366 583 641 2 600 980 1 618 1967........... 7,150 1 ,369 4,516 642 623 3*405 1 143 2*259 1965............... 3.29 2.40 .55 .34 .40 1968........... 8^275 1,572 4^924 I ,123 656 3 774 1 430 2 343 1966............... 3.40 2.54 .54 .32 .36 1967............... 3.47 2.66 .54 .27 .32 1968—July.. 712 135 438 72 66 327 120 207 1968............... 3.17 2.43 .51 .23 .26 Aug.. 752 135 460 94 63 341 122 218 Sept.. 727 135 453 78 61 322 Hl 211 1965—III. . .. 3.20 2.30 .56 .34 .38 Oct... 869 158 549 95 67 360 122 237 IV... . 3.29 2.40 .55 .34 .40 Nov.. 749 126 473 101 49 377 138 239 Dec.. 702 117 409 118 58 365 136 229 1966—I......... 3.02 2.13 .55 .34 .38 II........ 2.95 2.16 .49 .30 .38 1969—Jan... 762 134 474 105 48 369 145 225 III. ... 3.09 2.25 .52 .32 .36 Feb.. 614 106 388 80 39 296 114 182 IV.. . . 3.40 2.54 .54 .32 .36 Mar.. 642 110 381 100 50 329 122 207 Apr.. 681 113 428 82 57 301 111 191 1967—I......... 3.04 2.17 .56 .31 .38 May. 704 III 409 123 62 323 115 208 II 2.85 2.14 .45 .26 .34 June. 787 121 475 134 58 308 99 209 III. . .. 3.15 2.36 .52 .27 .31 July.. 869 140 518 127 85 356 122 234 IV.... 3.47 2.66 .54 .27 .32 1968—1......... 2.84 2.11 .49 .24 .32 1 Monthly figures do not reflect mortgage amendments included in annual II........ 2.89 2.23 .44 .22 .28 totals. III.... 2.93 2.23 .48 .22 .26 2 Not ordinarily secured by mortgages. IV.. . . 3,17 2.43 .51 .23 .26 3 Includes a small amount of alteration and repair loans, not shown separ­ ately; only such loans in amounts of more than $1,000 need be secured. 1969—1......... 2.77 2.04 .49 .24 .26 Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, Note.—Mortgage Bankers Association of America data from gross amounts of loans closed. Figures do not take into account principal reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ repayments on previously insured or guaranteed loans. For VA-guaranteed ventional mortgages held by more than 400 respondents, including loans, amounts by type are derived from data on number and average mortgage bankers (chiefly), commercial banks, savings banks, and amount of loans closed. savings and loan associations. 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SEPTEMBER 1969 □ REAL ESTATE CREDIT A 53 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- dissured anteed Pur­ Sales bursed sured anteed Pur­ Sales bursed chases chases 1965.......................... 2,212 1 ,540 671 156 154 332 1965. 2,519 1,864 656 757 47 462 1966.......................... 2'667 2,062 604 620 491 1966. 4,396 3,345 1 ,051 2,081 214 1967.......................... 3’348 2^756 592 860 1,171 1967. 5,522 4,048 1,474 1,400 12 501 1968.......................... 4,220 3 ,569 651 1 089 1 1 '266 1968......................... 7,167 5,121 2,046 1,944 .....1. .,.2..8.7 1968—July............... 3,949 3,298 652 86 1,170 1968--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 1,150 Nov............... 4,166 3 511 655 58 1 '248 Nov............... 7,048 5,045 2,003 132 1 ,236 Dec................ 4’220 3,569 651 73 1 ,266 Dec................ 7,167 5,121 2,046 146 ....1. ..,.2.8..7. 1969—jan................ 4,255 3,607 648 54 1 ,297 (969-—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 1311 Mar............... 7,689 5,467 2,222 205 1,621 Apr................ 4,357 3,721 636 50 1,312 Apr................ 7,851 5,576 2,276 192 1 ,887 May............... 4’395 3’764 631 61 1 321 May............... 7,998 5,678 2,320 176 2,237 June............... 4,442 3,816 626 70 1 ,322 June............... 8,175 5,802 2,373 209 2,578 July............... 4^493 3,871 622 68 .....I ..'.3.0..4 July............... 8,417 5,975 2,442 269 ....3..,.0..8..8 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 Secondary Implicit yield, by market Mortgage amounts commitment period (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 1968-—Aug............ 7.24 7.26 7.30 7 35 Sept........... 7.24 7.25 7 30 7.28 304.6 103,0 15.3 65.5 22.1 7.91 7.93 7.85 Oct............ 7.23 7 22 7 25 7 29 9......... 291.6 100.2 21,3 57.7 21,2 7.98 8.00 7.91 Nov........... 7.21 7 21 7 30 7 36 16............. 409.7 100.5 15,4 66.8 18.2 8.30 8.25 8.14 Dec............ 7.23 7.23 7 40 7^50 23......... 304.1 124.3 8.7 92.5 23.1 8.36 8.40 8.26 30............. 245.6 121.5 22.7 84.0 14.8 8.38 8.41 8.26 1969-—Jan............ 7.30 7.32 7 55 Feb............ 7.39 7 42 7 60 7 99 July 7......... 195.5 121.0 24.1 85.1 11.7 8.42 8.47 8.31 Mar........... 7.47 7 49 7 65 8 05 ' 14......... 177.1 129.7 17.4 100.9 11.5 8.39 8.40 8.29 Apr............ 7.62 7 60 7 75 8 06 22.............. 250.9 130.9 19.1 93.5 18.3 8.30 8.31 8.19 May........... 7.65 7 68 7 75 8 06 28.............. 298,2 129.6 15.9 92.4 21.3 8.25 8.26 8.15 June........... 7.76 7 79 8 00 8*35 July........... P7.90 *7.95 8 10 8 36 282.5 (25.4 19.1 78.9 27.4 8.27 8.28 8.16 Aug............ 8^20 8’36 “ 11...... 275.2 129.3 16.7 82.7 29.9 8.28 8.29 8.16 18............. 269.7 129.2 14.7 88.3 26.3 8.31 8.31 8.18 25......... 250.6 150.8 13.5 112.1 25.1 8.32 8.32 8.19 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices 252.5 150.5 22,9 94.8 32.9 8.33 8.34 8.21 on prevailing local conditions as of the first of the succeeding “ 8......... 242,7 152.4 29.0 98.7 24.6 8.34 8.36 8.22 month. Yields on FHA-insured mortgages are derived from 15............. (145.0) 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 Govt.-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-35) 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 54 CONSUMER CREDIT □ SEPTEMBER 1969 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Single­ Total m A o u b to ile ­ co g n o s o u d m s er e a r n n d iz m at o io d n ­ Pe lo r a so n n s al Total pa lo y a m n e s nt a C cc h o a u rg n e ts S c e r r e v d ic it e paper paper loans 1 1939....................................... 7 222 4,503 1 ,497 1,620 298 1 ,088 2,719 787 1 ,414 518 1941....................................... 9 J72 6,085 2,458 1 ^929 376 1,322 3,087 845 1 ,645 597 1945....................................... 5,’665 2,462 ’455 '816 182 1 ,009 3,203 746 1 ,612 845 1962....................................... 63.821 48,720 19,381 12,627 3,298 13,414 15,101 5,456 5,684 3,961 1963....................................... 71,739 55’486 22’254 14’177 3,437 15,618 16’253 6,101 5'903 4'249 1964....................................... 80’268 62’692 24’934 16,333 3’577 17’848 17^576 6,874 6 J95 4’507 1965....................................... 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966....................................... 97’543 77'539 30,556 20,978 3'818 22,187 20,004 7,972 6^686 5,346 1967....................................... 102^132 80,926 30,724 22,395 3,789 24^018 21,206 8,428 6,968 5^810 1068.............................. 113’191 89 890 34*130 24’899 3’925 26'936 23'301 9’138 7’755 6,408 1968- July............................. 105 680 84 448 32,874 22,452 3,808 25,314 21,232 8,695 6,457 6,080 Aug.............................. 107,090 85,684 33,325 22’777 3,857 25,725 21,406 8,774 6^574 6^058 Sept....................... 107^636 86,184 33,336 22'988 3’881 25^979 21,452 8'868 6,550 6,034 Oct.............................. 108^643 87,058 33,698 23,248 3'910 26,202 21,585 8’943 6’692 5’950 Nov........................... 110’,035 87^953 33’,925 23'668 3’931 26,429 22’082 9’024 6’, 964 6,094 Dec.............................. 113 191 89 890 34’130 24,899 3'925 26,936 23,301 9’138 7,755 6’408 1969--Jan................ 112 117 89 492 34,013 24,682 3,886 26,911 22,625 9 038 7,097 6,490 Feb.............................. 111’569 89,380 34,053 24,404 3,875 27,048 22'189 9,050 6,403 6,736 Mar......................... 111 950 89,672 34’262 24 306 3 '874 27,230 22^278 9,139 6’340 6,799 Apr.............................. 113 231 90,663 34,733 24,399 3,903 27,628 22,568 9,216 6,557 6'795 May............................ 114,750 91 ,813 35,230 24,636 3,964 27'983 22'937 9,'218 6'971 6'748 June............................ 115,995 93,087 35,804 24,956 4’,022 28’305 22’908 9*227 7'002 6',679 July............................. 116’597 93,833 36^081 25', 172 4'039 28^41 22^764 9; 120 7^039 6^5 1 Holdings of financial institutions; holdings of retail outlets are in- loans. For back figures and description of the data, see “Consumer Credit,” eluded in “other consumer goods paper.” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- and Dec. 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--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 May............................. 91 ,813 80,155 38,347 18,636 10,699 9,080 3,393 11,658 329 11,329 June............................ 93,087 81 ,388 38,916 18,961 10,939 9,146 3,426 11,699 333 • 11 ,366 July.................... 93,833 82,130 39,248 19,127 11,054 9,293 3,408 11,703 335 11,368 J Consumer finance companies included with “other” financial insti- 2 Automobile paper only; other instalment credit held by automobile tutions until 1950. dealers is included with “other retail outlets.” Sec also Note to table above. 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SEPTEMBER 1969 □ CONSUMER CREDIT A 55 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 Per­ Other Repair con­ mod­ sonal Auto­ con­ and Per­ End of period Total sumer erniza­ loans End of period Total mobile sumer modern­ sonal ch P a u s r e ­ d Direct g p o a o p d e s r lo ti a o n n s paper g p o a o p d e s r iz lo a a ti n o s n loans 1939........................ 1,079 237 178 166 135 363 1939 .............................. 1,197 878 115 148 56 1941........................ 1 ,726 447 338 309 161 471 1941.............................. 1,797 1,363 167 201 66 1945........................ 745 66 143 114 110 312 1945 .............................. '300 ’164 24 58 54 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 2,699 214 1 J95 1964........................ 25,094 8’691 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........................ 31,319 11'024 5,956 4,681 2,647 7,011 1966.............................. 16^697 9,572 4,256 151 2,718 1967........................ 32,700 10,927 6,267 5,126 2,629 7,751 1967 .............................. 16,838 9'252 4,518 114 2,954 1968........................ 36,952 12’,213 7,105 6,060 2',719 8,855 1968 .............................. 18,219 9^986 4,849 74 3/310 1968—July............. 35,103 11,744 6,863 5,559 2,639 8,298 1968—July.................... 17,448 9,709 4,596 82 3,061 Aug.............. 35,672 It,953 6^924 5,668 2,675 8,452 Aug.................... 17,670 9,812 41663 73 3,122 Sept............. 35,923 H ,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..................... 17^23 9’823 4,737 74 3',189 Nov.............. 36'560 12'190 7,063 5,855 2',723 8,729 Nov.................... 17,960 9,898 4,778 74 3,210 Dec.............. 36,952 12’213 7'105 6,060 2,719 8,855 Dec.................... 18^219 9,986 4,849 74 3 1310 1969—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 7 7 , ’ 0 0 0 5 5 6 1 1 2 2’ ,1 15 6 3 0 7 7 , 1 1 1 0 7 8 6 6 , , 1 13 6 5 8 2 2 , , 6 6 9 7 2 6 8 8 , , 9 9 1 4 0 2 1969—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 8 8 , ' 1 2 7 1 5 9 9 9 , , 9 9 5 6 1 2 4 4 , , 8 8 5 6 7 7 7 7 1 1 3 3, , 3 2 1 9 9 6 Mar............. 37,257 12,224 7,168 6'188 2,670 9,007 Mar................... 18^253 9^988 4'868 70 3,327 Apr.............. 37’854 12'388 7,273 6,299 2,690 9,204 18’418 10,095 41896 70 3,357 J M u a ne..... y ........ . 3 38 8 * '3 9 4 1 7 6 1 1 2 2 ^ , 5 7 4 2 1 7 7 7; ’ 4 3 5 67 7 6 6^ '4 5 0 5 6 7 2 2, , 7 7 6 2 3 ! 9 9 , , 3 4 1 1 2 2 J M u a n y e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 18 8 ^ ,6 96 3 1 6 1 1 0 0 ^ ; 2 4 4 4 6 0 4 51 '9 0 4 3 5 9 7 69 0 3 31 ’3 4 7 1 6 2 July............. 39^248 12^814 7',501 6^709 2,780 9,444 July.................... 19J27 10,538 5',088 70 3,431 See Note to first table on previous page. See Note to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sona! paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit 1939.............................. 789 81 24 15 669 ba c n ia k l s in ci s a t l i ­ 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 ........... 3,203 674 72 1 ,612 845 1965.............................. 17,292 3,368 1 ,367 972 11 ,585 1962............... 15,101 4,690 766 5,179 505 3,961 1966.............................. 18’708 3,727 1 ,503 1,020 12,458 1963............... 161253 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—July.................... 21,022 4,250 1 ,730 1 ,087 13,955 1966............... 201004 6,946 1,026 5,812 874 5,346 Aug............ 211348 4,323 1 '765 11109 14,151 1967............... 21,206 7,340 1 ,088 5,939 1 ,029 5,810 Sept.................... 21,511 4'369 1 1793 1,115 141234 1968.............. 231301 71975 11163 6,450 1 ,305 6; 408 Oct..................... 21,696 4^415 1 '829 1,120 14,332 Nov.................... 211926 41455 1 '847 11134 14,490 1968—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 !,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................... 221496 4,562 1,904 1 ’ 134 14,896 Dec.... 23,301 7,975 1,163 6,450 1 ,305 6,408 Apr.................... 22,790 4652 1 928 1,143 15 ,’067 May............. 23,172 4,747 1 1956 1,174 15^295 1969—Jan.. .. 22,625 7,878 I ,160 5,763 1,334 6,490 June........... 23^511 4'847 1 ^994 1’189 15^481 Feb.... 22,189 7,877 1,173 5,087 1 ,316 6,736 July.................... 23^755 4,893 2,007 1J89 15,666 Mar.... 22,278 7,961 1,178 5,037 1 ,303 6,799 Apr.... 22,568 8,040 1,176 5,237 1 ,320 6,795 May. .. 22,937 8,017 1 ,201 5,609 1 ,362 6,748 Note.—Institutions represented are consumer finance companies, credit June... 22,908 8,031 1,196 5,574 1 ,428 6,679 unions, industrial loan companies, mutual savings banks, savings and July. . . 22,764 7,946 1,174 5,541 1 ,498 6,605 loan assns., and other lending institutions holding consumer instalment credit. See also Note to first table on previous page. 1 Service station and miscellaneous credit-card accounts and home­ heating-oil accounts. Bank credit card accounts outstanding are included in estimates of instalment credit outsanding. See also Note to first table on previous page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ SEPTEMBER 1969 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (la millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a ir t io a n n d l oans Personal loans Period S.AJ N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1962 .. ...... . ...... 56,191 19,694 15,701 2,084 18,710 1963....................................... 63,59! 221126 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—July............................. 8,247 8,738 2,673 2,974 2,622 2,631 195 228 2,757 2,905 Aug............................. 8,187 8,’502 2,684 2,774 2,483 2,531 185 225 2'835 2,972 Sept......................... . . 8,416 7,682 2,783 2,354 2,560 2,462 196 199 2’877 2,667 Oct............................. 8^33 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 2^92 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 J 17 May.......................... 8'680 8,960 2',757 2,985 2,767 2,760 209 246 2,947 2,969 June............................ 8,705 9,169 2'725 3,045 2,869 2'832 218 245 2^93 3 ,047 July............................. 8'521 8^20 2,'582 2,828 2,777 2;778 185 214 2^977 3,100 Repayments 1962....................................... 51 ,360 17,447 14,935 2 010 16,969 1963........................................ 56,825 19:254 16^69 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 J 20 25 404 23,178 21110 25,428 1967....................................... 81,306 26,499 25,535 2,142 27 130 j 968........................................ 88^089 28’018 28:089 2’132 29 850 1968—July............................. 7,390 7,723 2,352 2,464 2,374 2,427 181 189 2,483 2,643 Aug............................. 7^53 7,266 2:327 2,323 2,209 2,206 170 176 2^47 2,561 Sept............................ 7,701 7,182 2,482 2,343 2:428 2,251 179 175 2',612 2’413 Oct.............................. 7^86 7,813 2,391 2355 2,451 2,492 177 182 2 ,’567 2,584 Nov............................. 7,454 7:271 2 J63 2,319 2,388 2',319 175 169 2^28 2 464 Dec............................. 7,502 7,631 2,357 2,284 2^22 2J77 175 169 2^48 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 2^56 Mar............................. 7;735 7,840 2,501 2,’541 2,461 2,521 180 180 2^93 2,598 Apr.. ........................... 7,960 8^033 2319 2^52 2,569 2,575 185 187 2,687 2,719 May............................ 7^34 7,’81O 2,488 2^88 2^07 2^23 183 185 2^56 2,614 June........................... 7,910 7,895 2,460 2^71 2,602 2,'512 183 187 2,665 2,725 July............................. 7,899 8; 174 2,471 2^51 2:511 2,562 191 197 2,726 2,864 Net change in credit outstanding 2 1962....................................... 4,831 2 247 766 74 1,741 1963........................................ 6:766 2’872 1 551 140 2303 1964........................................ 7,200 2:677 2 155 139 2,229 1965....................................... 8 629 3 684 2 232 150 2,563 1966........................................ 6,215 1 ^37 2313 90 1,775 1967........................................ 3,387 '168 1 .’417 -29 1,831 1968........................................ 8 ’, 964 3,406 2 304 136 2318 1968—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 May............................ 846 1,150 269 497 260 237 26 61 291 355 June.......................... 795 1 ,274 265 574 267 320 35 58 228 322 July............................. 622 ’746 111 277 266 216 -6 17 251 236 1 Includes adjustments for differences in trading days. purchases and sales of instalment paper, and certain other transac­ 2 Net changes in credit outstanding are equal to extensions less tions may increase the amount of extensions and repayments repayments. without affecting the amount outstanding. For back figures and description of the data, see “Consumer Note.—Estimates are based on accounting records and often Credit,” Section 16 (New) of Supplement to Banking and Monetary include financing charges. Renewals and refinancing of Ioans, 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

SEPTEMBER 1969 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Total Commercial banks S c a o le m s p fi a n n a i n e c s e Ot i h n e st r i t f u in ti a o n n c s ial Retail outlets Period S.AJ N.S.A. S.A.i 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 >91 23’344 12 152 16'768 11,327 1964 .. ......... 70,670 25’950 12'613 18,797 13 >10 1965........................................ 78,586 29,528 13,722 20,906 14,430 1966 ..... . 82*335 30,073 14*278 21,490 16>94 1967 ,. ...................... 84’693 30 >50 13,833 22,574 17,436 j968 .. ...................... 97,053 36,332 15,909 25,777 19>35 1968—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 >66 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>33 8,687 3 >52 3,306 1 ;367 1 ,437 2,309 2 >46 1 ,605 1 >98 Nov............................. 8,288 8,166 3,111 2,877 1 ,411 1 ,368 2,139 2,139 I ,627 1 ,782 Dec............................. 8,277 9,568 3,139 3,094 1 ,362 1 >35 2,208 2,571 t >68 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 8,720 9,024 3,318 3,585 1 ,405 1 ,463 2'378 2,447 1,619 1 >29 May............................ 8,680 8,960 3,236 3,436 1 ,451 1 '478 2,365 2,428 1 ,628 1 >18 June............................ 8,705 9’169 3,272 3,540 1 ,436 1 >66 2,323 2 >79 1 >74 1 >84 July............................. 8;52l 8,920 3 >41 3,323 1 >00 1 ,507 2’,439 2>39 1 >41 1 >51 Repayments 1962....................................... 51,360 18,468 10,200 13,455 9,237 1963 . ................... 56’825 20’326 10,927 15 >70 10,502 1964....................................... 63,470 22,971 11,638 16,764 12 >97 1965....................................... 69,957 25,663 12,048 18,813 13,433 1966... ...................... 76,120 27,716 12,860 20 >74 15 470 1967....................................... 81,306 29,469 13,692 21 ,330 16'815 1968....................................... 88 089 32’080 14,528 23’443 18 038 1968—July............................. 7,390 7,723 2,662 2,825 1 ,258 1,286 1 ,942 2,071 1 ,528 1,541 Aug............................. 7,253 7,266 2’610 2,676 1,156 1,107 2,023 2,018 1 ,464 1 >65 7,701 7,182 2*849 2,702 1,323 1,207 2,026 1 >80 1 >03 1 393 Oct.............................. 7,586 7,813 2,764 21877 1,230 1,294 2’052 2 >61 1,540 1 >81 Nov............................. 7 >54 7*271 2*769 2,669 1 ,254 1 >31 1 ,950 1 ,909 1 481 1 462 Dec............................. 7', 502 7’631 2,761 2’702 1,215 t ,276 2'019 2>11 1 ,507 1 442 1969—Jan.............................. 7,730 7,955 2,812 2,855 1 ,282 1,271 2,082 2,083 1 ,554 1 746 Feb.............................. 7^616 7 >83 2 >69 2’677 1 >31 I J 48 2 >66 1 >50 1 >50 1 *408 Mar............................. 7 735 7’840 2,928 2’954 1 ’287 1 >25 2,01 J 2 >25 1 509 1 536 Apr............................. 7,960 8,033 2,967 2’988 1 ,236 1 >98 2,140 2J53 1 '617 1 *594 May............................ 7’834 7 810 2^917 2,943 1 >78 1 '260 2,091 2 >46 1 548 1 561 June............................ 7 910 7 '895 2,989 2 >71 1 >23 1 241 2,079 2 140 1 619 1 543 July............................. 7,899 8,174 2,859 2>91 1 >30 1 >41 2’,181 2 >95 1 ,529 1 >47 Net change in credit outstanding 2 1962 4,831 1,997 1,078 1,332 422 1963 6>66 31018 1,225 1 >98 825 1964 . 7,200 3’065 975 2,033 1 127 1965 . ... 8,629 3,865 1 ,674 2,093 997 1966 . .. 6,215 2 >57 1,418 1,416 1 024 1967... ...... 3,387 1 '381 141 1,244 *621 1968 . . 8>64 4’252 1 ,381 2>34 997 1968—July............................ 857 1,015 356 518 108 209 248 236 145 52 Auk............... 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 I ,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 May............................ 846 1,150 319 493 173 218 274 382 80 57 June............................ 795 1 ’274 283 569 213 325 244 339 55 41 July............................. 622 746 182 332 70 166 258 244 112 4 1 Includes adjustments for differences in trading days. tween extensions and repayments for some particular holders do 3 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 58 INDUSTRIAL PRODUCTION: S.A. □ SEPTEMBER 1969 MARKET GROUPINGS (1957-59= 100) 1957-59 1968 1969 pro- 1968 Grouping por­ aver­ tion age” July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r Juner July r Total index.................................... 100.00 165.4 166.0 164.6 165.1 166,0 167,5 168.7 169,1 170.1 171 ,4 171 7 172 5 173.8 174.6 final products, total........................ 47.35 165.0 164. 7 164.8 165.7 167.0 167.9 168.1 168.2 169.3 170.8 170.2 170.0 171.1 172.5 Consumer goods........................... 32.31 156. 8 156.4 156.8 157. 3 159.6 159.2 160 1 161 O 161 .7 162,8 161.8 160,7 162.2 163.7 Equipment, including defense. . . . 15.04 182.8 182.6 181.9 183.6 183,0 186.5 185.3 83.5 185,5 187.8 188,4 190.0 190.4 191.5 Materials.......................................... 52.65 165,7 167,4 164.2 165.1 165.7 167.6 169.3 69.6 170.8 172,1 172.9 174.5 176.2 176.4 Consumer goods Automotive products.......................... 3.21 174.4 180.4 177.1 175.6 178.9 181.2 177.8 176.2 174 7 175.4 166.1 165.8 178.7 185.3 Autos................................................. 1.82 174.8 183.7 182.4 177,4 180.3 180.6 174.5 170.6 165.0 165.0 149.6 148.9 168,3 178.7 Auto parts and allied products..... 1.39 173.9 176,1 170.2 173.2 177.0 182.1 182.2 ms 187.6 189.0 187,9 188,0 192.5 193.9 Home goods and apparel................... 10.00 156.4 154.1 155.8 156.3 158.1 158.6 157.6 160.8 160.5 162.8 161.5 161.9 160.7 161.9 Home goods...................................... 4.59 175.5 171.5 174.6 175.9 176.7 178.3 180.0 84,3 183 0 186.3 186.1 185.9 186.1 184.8 Appliances, TV, and radios.......... 1.81 168.5 161.8 168,0 170.4 171,8 171,9 173.2 77,7 179.1 182.9 182.0 182.0 179,9 183.1 Appliances................................. 1.33 174.2 166.5 172,8 175.5 175.1 177.2 181.7 86.9 187.3 189.4 190.1 192.7 190.2 197.3 TV and home radios................. .47 152.4 148.5 154,5 156,2 162,5 156.9 149.4 51.5 1 56.0 164.4 158.9 151.9 150.6 143.0 Furniture and rugs........................ 1.26 173.7 174,5 174.0 175.5 174.2 177.0 180.2 84.3 181.2 182.0 183.3 183.4 184.0 179.5 Miscellaneous home goods....... 1.52 185.2 180,5 182,9 182.8 184.7 187,0 187.9 92.2 189.0 193.8 193,4 192.6 195,2 191.3 Apparel, knit goods, and shoes....... 5.41 139.5 139.4 139,8 139,6 142,3 142,0 138.7 40.8 141.4 142.9 140.6 141.5 139.2 Consumer staples............................... 19.10 154.0 153.5 153.9 154.9 157.1 155.8 158.4 158.6 160.2 160.8 161.2 159.2 160.2 162.0 Processed foods................................ 8.43 132.6 132.9 132,5 132,5 133.2 132,0 134.7 34.8 136 7 136.4 137,1 136 4 136.1 136.6 Beverages and tobacco..................... 2.43 141.9 139.6 144.7 145,2 145.9 142,3 145.4 44.6 147,5 150,9 143.7 137.9 140.4 Drugs, soap, and toiletries............... 2.97 193.3 192.6 190.6 193,6 199.8 200.4 201.4 203.7 203,7 205.0 209.9 208.0 206.1 206.9 Newspapers, magazines, and books. 1.47 143.3 144.2 143.6 140.7 145.8 146,0 147,1 46,3 145.7 143,3 145.9 147.3 146.3 148.9 Consumer fuel and lighting.............. 3.67 182.9 180.8 182,6 186,0 188,7 186,1 190.2 90.0 192.0 193.6 194.1 1 89 8 195.7 Fuel oil and gasoline..................... 1.20 138.9 140.3 138,3 142.6 141.4 140.6 141.3 29.9 139 6 141.6 142,4 143.9 146.8 144.0 Residential utilities........................ 2.46 204.4 200.6 204.2 207.2 211.8 208.3 214.0 119.3 217.6 218.9 219.3 212.2 219,6 Electricity............................ 1.72 223.3 219.0 224.0 228,0 233.6 228.0 235.7 242.8 239.9 240.6 240.6 230.0 240.0 Gas............................................. .74 171 .4 Equipment Business equipment............................ 11.63 184.8 183.4 182.4 185.2 186.8 191.2 191.1 191.4 191.9 192.9 194.1 195.7 197.0 197.8 Industrial equipment.................. 6.85 168.1 167.5 164.7 167,8 170,2 174,0 174,9 75.9 175.7 176.7 178,6 180.9 182.7 180.8 Commercial equipment.................... 2.42 205.3 202.4 204.6 205.9 207.3 208.7 205,3 209.9 214 3 217,3 220,1 221.7 221.0 220.0 Freight and passenger equipment. .. 1.76 234.5 234.3 233.2 235,6 234.3 247,4 247.2 -45.5 244.4 242.3 239.7 238.4 240.8 251.5 Farm equipment............................... .61 146.1 139.6 145,8 152.9 155.3 152.4 134.0 36.1 133.0 135,6 133.9 134.9 135.2 Defense equipment............................. 3.41 Materials Durable goods materials............ 26.73 158.0 159.8 153.3 153.3 155.4 157.6 159.7 161.2 162.6 164.0 165.8 165.5 167. 3 167.1 Consumer durable............................ 3.43 164.5 167.7 153.5 166,1 166.5 169.6 161 .0 162.2 167.7 163.2 157.9 156.6 162.7 166.4 Equipment......................................... 7.84 185.2 185.8 185.3 185,1 184.7 187.7 187.5 87.4 189.3 190.7 190.3 191 .7 193.2 193,4 Construction..................................... 9.17 [45.9 143.7 143,3 145,5 146.3 148,3 152 2 153.5 154.2 154.5 153.2 153.0 151.7 149.0 Metal materials n.e.c........................ 6.29 137.9 146.6 127.4 122.3 126.6 131.8 140.5 144.6 150.2 153.3 151,5 148.4 154.6 155 8 Nondurable materials..................... 25.92 173.7 175.3 175.5 177.2 176.4 177.9 179.2 178.3 179.2 180.3 180.3 183. 7 185.3 186.0 Business supplies.............................. 9.11 157.5 157.9 158.4 161.1 162.3 161,7 163.2 164.2 164.4 165.3 162,3 165.9 167,0 167.5 Containers..................................... 3.03 157.0 156,0 154,2 163.4 167.4 161,5 164.8 167.4 1 68.1 170.4 165.0 168.2 1 67.5 164.8 General business supplies............. 6.07 157.8 158.8 160.5 160.0 159,8 161.8 162.4 162.6 162.5 162.7 160.9 164.7 166.7 168 8 Nondurable materials n.e.c............... 7.40 221.8 223.8 223.6 227.3 228.2 230.3 233.6 229.3 231.6 232.7 232.3 236.6 238.8 240.3 Business fuel and power................... 9.41 151.6 154.1 154,3 153.3 149.3 152.5 151.9 51 .8 152, 3 153,7 156.9 159.3 161.1 161 .2 Mineral fuels................................. 6.07 132.8 136.9 136.6 134.1 126.0 131.4 130.0 27.8 127.7 130.2 134.2 137.4 138.9 138.9 Nonresidential utilities................. 2.86 199.3 198.2 200.3 202.8 206.3 205.7 206.7 211.5 212 5 211.7 213.7 214.9 216.8 Electricity.................................. 2,32 202.4 200.2 202.2 204.8 208,6 207.1 208.1 213.7 214.8 214,7 216.7 218,1 220,0 General industrial................. 1.03 197.5 195.1 197.0 199.3 203,6 202.0 204.2 206.2 209 2 208,3 212.4 213.4 216.4 Commercial and other........... 1.21 216.7 214.8 216.9 220.0 223.6 222.0 222,2 231.2 230.7 231.2 231.7 233.4 234,7 Gas............................................. .54 171.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 175.0 175.2 175.6 175.8 177.6 179,5 179.1 181 .0 179.6 181.8 177.9 177,6 183.1 185.0 Apparel and staples........................ 24.51 150.8 150.4 150.7 151.5 153.9 152.8' 154.1 154 7 156.0 156.8 156,6 155.3 155.5 For notes see page A-61. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1957-59 = 100) 1957-59 1968 1968 1969 Grouping pro­ aver­ por­ tion age1’ July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July*- Total index.................................... 100.00 165.4 166.0 164.6 165,1 166.0 167.5 1 68.7 169 1 170.1 171.4 171 7 1 72 5 173 8 174.6 Manufacturing, total......................... 86.45 166.8 167.4 165.7 166.3 167.8 169.1 170.2 170.2 171.8 173.1 173.0 173.8 174.9 175.5 Durable......................................... 48.07 169.9 170.8 167.8 168.7 169.3 171.3 172.4 173.0 1 74. 5 175 9 175.7 176.7 178.4 179 0 Nondurable................................... 38.38 163.0 163.0 163 0 163.3 165.9 166.3 167.4 1 66.7 168 3 169.5 169,6 170.3 170.6 171 .‘2 Mining.............................................. 8.23 126.4 130.0 129.4 127.0 120 7 126.4 127.4 125.8 124,8 126,7 128.8 130.3 132.2 132.8 Utilities............................................ 5.32 201.6 199.3 202.1 204.8 208.9 206.9 210. 1 215 1 214.9 215.1 216.3 213.6 218.7 221 .8 Dera We manufactures Primary and fabricated metals......... 12,32 150. 7 154. 7 141.8 141.1 144.5 148.6 152.9 155.6 158.4 160.3 161.2 162.3 165,7 163,8 Primary metals.................................. 6.95 1 37.3 145.8 122.8 120.6 123.1 129. 3 135.4 139.5 143.6 146.2 147.9 149.3 154.0 152.2 Iron and steel.............................. 5.45 131 .0 146.6 112.9 107.3 108,1 115,8 124.6 126.8 133.7 139.0 141.2 141 .6 146.8 146 Nonferrous metals and products.. 1.50 160.1 153.6 153.9 166.2 174,0 173.8 180,7 179.6 183.4 186,9 186.2 184.3 190.8 179.6 Fabricated metal products............... 5.37 168.1 166.2 166.3 167,6 172.2 173.5 175.6 176.4 177.6 178.5 178.3 179.2 180.8 178.8 Structural metal parts................... 2.86 162.3 159,7 159.1 161.1 165.1 168.3 170.3 170.1 174.5 175.8 174,4 173.1 173.8 170.3 Machinery and related products....... 27.98 183.9 184.0 184.4 185.6 185.0 186.2 185.6 185.2 186.3 187.9 187,4 188.4 190.3 192.6 Machinery...................................... 14.80 184.4 182.7 183,8 186.4 186.1 187.4 188,6 191 .8 192,7 194.7 194.6 196.9 197.1 198.9 Nonelectrical machinery............... 8.43 181.3 179.8 179.1 182.6 183.7 184.4 185,3 188 3 189.6 190.2 190.8 193.1 195.3 197.6 Electrical machinery...................... 6.37 188.6 1 86.5 190.1 191.4 189.3 191.4 193,0 196.4 196.9 200.7 199,5 201 .8 199.5 200.7 Transportation equipment. .............. 10,19 179.6 183.2 181,7 180.5 180.4 180.2 176.4 171.2 173. 1 174,1 172,4 171.8 176.6 181.5 Motor vehicles and parts............. 4.68 171.6 174.3 175.4 173.5 177.0 177.7 172.3 167.3 167,7 167.6 160,8 156.8 169.1 174.4 Aircraft and other equipment.... 5.26 185.1 189.3 185,7 184.7 181.0 179.6 177.0 170,9 174,1 176,0 178,7 180.8 179.5 184.1 Instruments and related products. .. 1.71 184.2 179.2 182.6 184.3 185.8 188.5 189.7 191.6 190,4 192.8 195,4 195.3 195.7 192.9 Ordnance and accessories 1 .28 Clay, glass, and lumber............ 4.72 137.2 136.2 135.5 138.8 139.9 141,5 144.3 143.8 145.6 145. 1 143.2 143.6 140.7 139.5 Clay, glass, and stone products........ 2.99 146.2 145.2 147.5 150.0 151.8 150.4 151.2 156.2 156.5 153.4 155.1 156.9 155.3 153.4 Lumber and products....................... 1.73 121.7 120.6 114.7 119.4 119.4 126,1 132.3 122.5 126,7 130.8 122,6 120.7 115.5 115.4 Furniture and miscellaneous......... 3.05 169.9 169.5 170,1 170.9 171.3 172.2 174.2 176.6 175.7 176,5 178.4 179.0 179.1 176,7 Furniture and fixtures............. 1.54 178.3 177.8 178.6 179.7 180.4 181.7 182.9 186.8 186.5 187.0 188,9 190.2 189.9 186.6 Miscellaneous manufactures............ 1.51 161.3 161.1 161.4 162.0 162.1 162.5 165.3 166.2 164.7 165.7 167.6 167.5 168.1 166.6 Nondurable manufactures textiles, apparel, and leather. ...... 7.60 145.3 144.2 144.1 144.8 146.8 147.5 145.0 143.6 142.6 144.7 143.7 146.3 146.3 145.0 Textile mill products........................ 2.90 151 .5 150.9 151.4 152.0 153.3 155.1 153.5 152.9 152.0 152.9 154,2 156.5 157,8 154.9 Apparel products............................. 3.59 149.9 150.4 149.0 149,9 152.1 152,5 149,2 148,1 147.9 150.2 147.8 150.0 149.9 Leather and products....................... 1.11 111.3 107.0 109.5 109,3 113.0 111.7 109.2 105,0 101,3 105.6 103.4 107.6 104.8 Paper and printing............................ 8.17 155.6 155.6 156.5 156.8 157. 7 159.8 159,7 160.2 161.2 162.2 162.4 163.8 164.3 165.6 Paper and products.......................... 3.43 163.9 164.1 164.1 166,1 166.7 170.1 169,9 171.1 173.9 175,0 175.8 174.9 175.1 175.9 Printing and publishing............ 4.74 149.6 149.5 151.1 150.0 151.2 152.3 152.3 152.4 152.1 153.0 152.7 155.9 156.5 158.1 Newspapers................................... 1 .53 136.1 134.7 137.7 140.9 138.4 140.8 139.5 141.2 141.7 141.4 137.5 142.8 141.3 145.6 Chemicals, petroleum, and rubber.... 11.54 207. 1 208.2 207.6 207.9 212.8 213.6 216.8 214. 1 218.0 219.6 221.7 222.7 223.3 224.0 Chemicals and products................... 7.58 221 .3 222.4 221.0 222.4 227.8 228.7 231.8 231.3 234.4 235.2 239.1 239.5 239. 1 240.6 Industrial chemicals . 3.84 261.0 264.4 262.7 263.2 268.2 268.0 275.0 273,4 276.7 277.7 283.3 285.2 284.9 Petroleum products.......................... 1.97 139.8 139.5 140.7 141 .9 142.2 141.4 141.2 131 ,0 140.2 142.7 142.2 143.5 145.4 142.0 Rubber and plastics products . 1 .99 219.7 222.4 223 1 223.4 225 8 227.5 234.6 230.8 232.8 236,2 234.2 237.0 240.4 Foods, beverages, and tobacco....... 11,07 134.6 134.2 134.4 134.5 136.1 134.9 137.0 138.0 139,5 139.8 138.2 136.9 137.0 138.3 Foods and beverages........................ 10.25 135.7 135.1 135.3 135.4 137.3 136,1 138.8 1 39.4 140.9 141.5 140.5 138.6 138.3 139.6 Food manufactures....................... 8.64 132,7 132.7 131 .5 131.5 133.3 132.8 134.6 1 36. h 137.2 136.7 136.7 136.6 136.1 136.5 Beverages....................................... 1.61 152,6 147.9 155.7 156.0 158.6 153,7 161 .6 157 4 160.9 167.2 160,6 149.4 149.8 Tobacco products..................... .82 120.9 123.4 123.1 124.0 120.8 119.9 113,6 119 5 121 .2 118,7 110.5 115.4 121.9 Mining Coal, oil, and gas.......................... 6.80 125.0 128,7 127.9 125.8 118.9 124,6 124.2 122.4 120.2 121.9 125.7 128.7 130.5 131.0 Coal.................................................. 1.16 117.8 126.6 121.3 120.8 86.6 115.9 118,3 115 3 112,4 114.3 120.2 123.9 109,5 123.7 Crude oil and natural gas................ 5.64 126.5 129.2 129.3 126 8 125.5 126,3 125.4 123.9 121 .8 123.5 126.9 129.6 134.8 132.5 Oil and gas extraction................... 4.91 136.3 139.3 140.2 137.3 135.3 135.1 132,8 1 30,8 131.3 134.0 137,5 140.5 145.8 142.5 Crude oil................................... 4.25 130.6 134.0 134.8 131 .2 129.1 128.6 126.4 124.0 124.0 127.0 130.2 133.1 139,2 136.1 Gas and gas liquids.. ............... .66 172.6 Oil and gas drilling . . .73 60.0 60.7 55,9 55 8 59 5 67,3 75.4 Metal, stone, and earth minerals....... 1.43 132.9 135.8 136.2 132.8 129,2 135.3 143.0 142,1 146.4 149.9 143,6 138.3 140.4 141.2 Metal mining.................................... .61 126.4 134.1 134.5 127.7 125.1 135.1 137.6 1 40.2 142.7 149.1 146,6 134.5 137.4 142.2 Stone and earth minerals................. .82 137.7 137,1 137,5 136.5 132.2 135.5 147.0 143.5 149.2 150,5 141.4 141.2 142.6 140.4 Utilities Electric................................. 4.04 21 1 .3 208.2 211.5 214.7 219.3 216.0 219.9 226,1 225.5 225.7 226.9 223.1 229.4 Gas.................................................... 1.28 171,4 171,3 172,6 For notes see p. A-61. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. □ SEPTEMBER 1969 MARKET GROUPINGS (1957-59= 100) 1957-59 1968 1968 1969 pro­ Grouping p tio o n r­ a a v g e e r ” ­ July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May r Juner July' Total index.................................... 100.00 165.4 160.3 163.3 169.5 170,7 169.1 166.3 166,5 170.5 173.1 171.9 172.4 177.0 167.8 Final products, total,.................. 47.35 165.0 159.1 162.0 171.9 172.6 169.2 165.6 166.6 169.3 171.9 168.6 168.4 174.3 166.5 Consumer goods................... 32.31 156.8 149.6 154.2 165.9 167.5 161,7 155.8 158.9 161.8 163.9 159.0 158.2 165.8 156.4 Equipment, including defense. . .. 15.04 182.8 179.6 178.6 184.6 183.6 185.4 186.6 183.1 185.4 189.0 189.1 190,4 192.4 188.3 Materials........................................... 52.65 165.7 161.3 164.5 167.5 169.0 169.5 166.9 166.4 171 .5 174.3 174.8 176.1 179.4 168.9 Consumer goods Automotive products......................... 3.21 174.4 148.4 101.1 170.8 197.2 198.3 185.5 185.4 183.6 186.0 174.7 173.1 191.1 133.0 Autos............................................ 1.82 174.8 134.1 45,6 165,0 207.4 212,2 192.0 187.7 181.5 184.8 164.6 165.3 191 .0 94.7 Auto parts and allied products..... 1.39 173.9 167.4 174.1 178.4 183.8 180.1 176.9 182.3 186.3 187.5 187.9 183.5 191 .2 183.3 Home goods and apparel................... 10.00 156.4 140.4 155,8 162.2 167.4 162.7 149.2 155.9 164.2 168.9 161.9 162.3 166.4 148.9 Home goods..................................... 4.59 175.5 157.1 169.8 183.9 189.5 186.2 178,8 182.8 187.7 191.2 188,8 188.4 191.2 172.4 Appliances, TV, and radios......... 1.81 168.5 139.8 151,6 180.5 187.5 180.1 161 .5 183.2 195.0 198.8 194,7 194.3 194.3 167,2 Appliances................................ 1.33 174.2 149.5 147.8 183.5 186.1 180.7 172,2 191.8 206.0 211.7 213,1 212.0 212.3 187,1 TV and home radios................. .47 152.4 112,4 162.2 171.8 191.7 178,2 131 ,5 158.9 164.1 162.6 143.0 144.3 143,8 111.1 Furniture and rugs........................ 1.26 173.7 166.1 178,0 180.4 183.3 183.5 186.9 180.2 179.0 179.8 178.2 176.4 181.8 170.9 Miscellaneous home goods........... 1.52 185.2 170.2 184,7 191 .0 196,9 195.6 192.6 184.5 186.2 191 .7 190,5 191.4 195.2 179.8 Apparel, knit goods, and shoes....... 5 41 139.5 126.2 144,0 143.8 148,7 142.7 124.1 133.1 144.2 150.0 139.2 140.1 145.5 Consumer staples............................... 19.10 154.0 154.6 162.3 167.0 162.6 155.0 154.3 155.9 156.8 157.6 154.9 153.5 161.3 164.3 Processed foods................................ 8.43 132.6 132.2 140.2 152.6 147.9 137.0 132.4 128. 1 129,2 128.6 127.0 128.2 134.7 135.9 Beverages and tobacco..................... 2.43 141 .9 146,4 156.7 148.9 150.0 135,0 125.9 126.9 134.5 147.5 145,4 148.3 160.8 Drugs soap, and toiletries............... 2.97 193.3 187,8 196.9 199.4 204.6 201.4 196.8 199.6 203.7 205.0 207,8 203.8 213.3 201.7 Newspapers' magazines, and books. 1.47 143.3 142.8 145.3 142.0 145.7 144.1 146.8 145.0 145.1 145.4 146.5 146.9 145.7 147.4 Consumer fuel and lighting.............. 3.67 182.9 188.8 195.5 195.9 1 76.5 175.0 191 .3 206.9 200.5 196.4 184.1 176.0 185.7 Fuel oil and gasoline.................... 1.20 138.9 142,8 142.5 142.7 137,7 139.7 144.6 135.3 143.0 140.0 135.1 139.3 145.1 146.6 Residential utilities... ............. 2.46 204.4 Electricity.............................. 1.72 223.3 234.3 248,6 249.1 210,2 205.0 235.7 275.1 255.7 247.8 224.5 203.8 219.7 Gas............................................. .74 171.4 Equipment Business equipment....................... 11.63 184.8 180.2 178.6 186.6 187.0 188.3 191.3 190.2 191.8 194.6 195.5 196.7 200.0 194.2 Industrial equipment....................... 6.85 168.1 165,8 164,2 169.3 169.2 172.4 175.8 175.5 174.8 176.9 178.6 181.1 184.5 179.0 Commercial equipment.................... 2.42 205.3 198,4 204.6 209.0 209,4 211.2 209.8 210.1 212.8 215.3 215.9 219.0 221 .7 215.6 Freight and passenger equipment... 1.76 234.5 229.6 219.2 238.0 240,2 240.0 239.8 238.1 244.4 249.6 249.3 245,6 250.4 246.5 Farm equipment............................... .61 146. 1 126.8 119.1 143,4 145.7 126.8 131.1 138.6 146.8 152.8 149.6 142.7 143.2 Defense equipment............................ 3.41 Materials Durable goods materials.................... 26.73 158.0 155.1 153.1 157.4 158.9 159.6 158.2 157.0 162.8 165.9 166.4 167.4 171.9 161.1, Consumer durable............................ 3.43 164.5 153.4 145,8 164.4 169.0 174.7 169.0 167.9 170.2 168,1 162.6 161.3 166.0 152.3 Equipment.................................... 7.84 185.2 180.0 179.7 183.2 184.1 187.9 190,3 189.1 191.0 192.8 192.4 193.0 195.1 187.4 Construction..................................... 9.17 145.9 149.4 153,3 154.2 153.6 148.0 143.1 136.6 143.4 148.3 151.7 155.3 161.6 155.0 Metal materials n.e.c........................ 6.29 137.9 133.4 123.7 126.0 129.6 132,9 134.3 140.8 151 .6 157.0 157.6 156.6 161.1 141.8 Nondurable materials........................ 25.92 173.7 167.6 176.3 177.9 179.3 179.6 176.0 176.2 180.6 182.8 183.4 185.0 187.1 177.1 Business supplies............................. 9.11 157.5 148.1 158.8 163.0 168.9 165.3 157,7 158.4 163.7 168.3 166,9 168.6 168.7 157.1 Containers..................................... 3.03 157.0 152.1 165.0 169.0 175.9 161.1 146,7 159,0 166.1 171.3 170.9 169,9 172.7 160.7 General business supplies............. 6.07 157.8 146.1 155.7 160.0 165.4 167.5 163.2 158.0 162.5 166.8 164.9 168.0 166.7 155.3 Nondurable materials n.e.c............... 7.40 221.8 211.0 221.4 225.0 230,5 232,6 228.9 228.2 236.2 237.4 239.3 240.1 242.4 226.6 Business fuel and power................... 9,41 151 .6 152.4 157,7 155,2 149.2 151.9 152.0 152.5 153.1 153,9 155,4 157.4 161.4 157.4 Mineral fuels................................. 6.07 132.8 130.1 134.9 132.6 126,1 132.7 131.6 129.9 131.8 133.0 135,9 137.3 138.1 129.2 Nonresidential utilities. ......... 2.86 199.3 Electricity................................... 2.32 202.4 212.2 220.7 216.7 208.3 201 .2 203.8 210.2 205.9 207.7 206.4 210.9 224.4 General industrial................. 1.03 197.5 198.0 202.9 202.3 204,0 202.0 202.2 205.2 202.7 207.3 209.6 214.5 220.7 Commercial and other.......... 1.21 216,7 235.2 247.3 240,2 222,7 210,9 215.5 225.4 219.2 218.7 214.3 218,7 239.4 Gas............................................ .54 171.4 Supplementary groups of consumer goods Automotive and home goods........... 7.80 175.0 153.5 141.5 178.5 192.7 191.2 181.5 183.9 186,0 189.1 183.0 182.1 191.1 156.2 Apparel and staples......................... 24.51 150.8 148.3 158,3 161.9 159.5 152.3 147.6 150,9 154.1 156,0 151.4 150.5 157,8 For notes see page A-61. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1968 1968 1969 Grouping p p ti r o o o r n ­ ­ a a v g e eP r- July Aug. Sept. Oct. Nov. Dec. Jan, Feb. Mar. Apr. Mayr June r July' Total index.................................... 100.00 165,4 160.3 163.3 169.5 170,7 169.1 166.3 166.5 170.5 173.1 171,9 172.4 177.0 167.8 Manufacturing total......................... 36,45 166.8 160.4 163.0 170.5 173.4 171.4 167.5 167.0 172.1 175. 1 173.7 174.4 178. 7 167.4 Durable......................................... 48.07 169.9 164, 1 160.5 170.6 173,5 174.2 172.6 171 .4 175.3 178.6 177.7 178.3 182.4 170.2 Nondurable............................. 38.38 163.0 155,7 166.3 170.5 73,3 168.0 161 .2 161.4 168.0 170.8 168.6 169.5 174.2 164.0 Mining.............................................. 8.23 126.4 127.1 130.7 128.6 22,8 126.8 126.3 124,1 124.2 125,4 130,2 132.9 134.6 127.7 5.32 201 ,6 Durable manufactures Primary and fabricated metals...... 12.32 150,7 146.2 140.5 143.9 147.5 149.8 150.6 153.7 160.1 164.0 164.2 164. 1 168.6 154.4 Primary metals................................. 6.95 137.3 132.7 117.9 119.4 124.3 129.3 131.3 139.5 150.3 155.3 155,3 153.0 156.3 137.6 Iron and steel................................ 5.45 131 .0 131.2 108.4 106.2 109.7 117.0 121 .5 129.3 140.4 146.0 146.8 144.4 146.8 131 Nonferrous metals and products.. 1.50 160.1 138,2 152,4 167.4 177.3 173.8 167.0 176.5 186.2 189,0 186.2 184.3 190.8 161.6 Fabricated metal products............... 5.37 168.1 163,7 169.6 175.6 177.4 176.3 175.6 172.2 172.8 175.3 175.6 178.3 184.4 176.1 Structural metal parts................... 2.86 162.3 159.7 163.1 167.5 170.1 170.8 172.0 166.7 167.5 168.9 169.2 172.2 177,3 170.3 Machinery and related products........ 27.98 183.9 175.7 169.8 185.3 188.4 190.3 188.4 186.8 189.3 192.1 190.0 190.5 194.2 181,5 Machinery......................................... 14,80 184.4 176.0 177.9 187.0 88.1 189.1 188.4 191.7 195,0 197.6 197.4 198.5 201.2 191.4 Nonelectrical machinery............... 8.43 181.3 175,3 172.5 180.2 80.4 182.6 185.3 188.3 192.3 195.5 196.5 197,9 200,8 192.7 Flectrical machinery..................... 6.37 188.6 176.9 185.0 196,1 98.3 197.6 192.4 196.1 198.6 200.5 198.6 199.3 201 .8 189.7 Transportation equipment. .............. 10.19 179.6 170.5 150,1 178.3 86.4 188,3 183.8 176.0 178.2 181.4 176,2 175.6 181.1 162.4 Motor vehicles and parts............. 4.68 171.6 152.0 110.5 170.0 88.9 192,6 181.5 176,6 176.3 177.7 167.9 165.6 180.9 137.9 Aircraft and other equipment. . . . 5.26 185.1 184.8 182.4 184.0 81.9 182,3 183.2 172.6 176.7 181 . 1 179.6 180.1 177.0 179.7 Instruments and related products... 1.71 184.2 177.4 184.1 186,3 87.8 190.0 192.0 189.3 189.4 191 .8 192.5 193.3 197.7 191 .0 Ordnance and accessories . . 1.28 Clay glass, and lumber. ............. 4.72 137.2 142.0 147.6 148.6 148.3 139.4 133.2 127.6 134.6 140. 1 142.8 145.2 150.5 144.8 Clay^ glass’ and stone products....... 2.99 146.2 154.4 159.3 158,6 160,1 150.4 143.2 138.4 141 .0 147.4 154,5 159.4 166.0 161 .8 Lumber and products. .................... 1.73 121.7 120.6 127.3 131,3 127.8 120.4 115.8 109.0 123.5 127.5 122,6 120.7 123.6 115.4 Furniture and miscellaneous.............. 3.05 169.9 164.1 175.0 177.3 180.5 180.0 177.7 169.8 171.0 173.3 173.7 174.8 179.3 169.6 Furniture and fixtures...................... 1.54 178.3 173.4 183.6 185,1 187.3 186.8 189.8 183.1 183.7 184.8 183.8 184.5 189.5 179.1 Miscellaneous manufactures............ 1.51 161.3 154.7 166.2 169.3 173.5 173.1 165.3 156.2 158.1 161 .6 163.4 165.0 168.9 159.9 Nondurable manufactures Textile* apparel, and leather............ 7.60 145.3 129.0 146.9 147.6 151.6 148.0 133.2 140.6 148.7 154.5 145.4 146.9 150.6 131.9 Textile mill products........................ 2.90 151.5 136.6 152.2 155.0 156.4 157.4 146,6 150.6 154.3 159.8 155,7 158.8 161 .0 140,2 Apparel products.............................. 3.59 149.9 133.1 152,0 152.9 158.9 152.5 132.0 143.7 156.8 163.7 150.8 151 .5 156.6 leather and products....................... 1.11 111.3 96.3 116.6 110.9 115.8 109.5 101 .9 104.5 108.3 110.9 101.3 101.1 104.3 Paper and printing.. ........................ 8.17 155.6 146.3 155.1 158.9 165.4 163.1 155.9 157.0 162.0 165.9 165.3 165. 1 165.5 155.5 Paper and products.......................... 3.43 163.9 151.0 164.1 168.6 178.4 177.0 156.3 168.5 178.2 180.3 178.4 175.8 179.1 161.8 Printing and publishing.................... 4.74 149.6 142.9 148.6 151.9 156.1 157.4 155.6 148.7 150.3 155.6 155.7 157.4 155.7 150.9 Newspapers................................... 1 .53 136.1 117.2 128.8 140.2 148.5 154,9 143.0 129.9 136.0 144.9 146.4 152.2 142.0 126.7 Chemicals, petroleum, and rubber.... 11.54 207.1 199.8 208.9 212.4 216.9 214.3 212.2 210.2 220.8 221.3 222.1 222.8 228.3 214.8 Chemicals and products................. 7.58 221 .3 214.7 222.7 225.9 230.4 230.9 221.8 226.5 236.1 237.3 241.9 239.7 244 4 232.3 Industrial chemicals...................... 3.84 261 .0 253.8 261.4 265.8 270.9 274,7 275,0 269.3 280.9 280.5 286.1 285.2 286 3 Petroleum products. ................... 1.97 139.8 146.9 148.2 147.6 143,6 139.6 137,8 127.1 137.4 137,7 136.5 142.1 149.8 149 5 Rubber and plastics products........... 1.99 219.7 195.7 216,4 230.8 238,2 225,2 226.4 230.8 244.9 243.5 231 .9 238.2 245.2 Foods beverages, and tobacco........... 11.07 134.6 135.1 143.4 151.1 148,5 136.9 131.2 128.2 130.7 133. 1 131.3 132.8 140.5 119 3 Foods and beverages........................ 10.25 135.7 137.2 144,2 152.9 149.8 138,0 134.2 129.0 131.6 134.4 133.0 1 33 8 141.3 141 8 Food manufactures....................... 8.64 132.7 131.9 139.7 151.8 148.0 137.4 132.6 128.6 129.7 129,0 127.4 128 4 134.7 i35 7 Beverages....................................... 1.61 152.6 165.3 168.6 159.1 159.4 141 .4 143.0 131.3 141.6 163.0 163.2 162.8 176.2 Tobacco products............................. ,82 120.9 109.2 133.2 128.8 131.6 122,3 92.5 118.2 120.6 116.9 110.3 119.6 130.4 Mining Coal, oil, and gas.............................. 6.80 125.0 122.7 126.9 124 8 119.1 125.7 125.6 124.4 123.9 124.1 128.3 129.6 130.3 122.3 Coil.................................................. 1.16 117.8 105.2 127.6 127.8 94.4 120,6 1 16.2 113.0 113.7 115.2 121.0 125.1 11 6.6 86,6 Crude oil and natural gas................. 5.64 126.5 126.3 126,7 124.2 124,2 126.7 127.5 126. 8 126.0 125.9 129.8 1 30.5 1 33 1 129.6 Oil and gas extraction.................. 4.91 136.3 136.0 136.7 133 8 133.5 135.5 135,2 134.0 136.1 137,2 139.4 140.2 143.2 139.2 Crude oil................................... 4.25 130.6 131.3 132.1 128.6 127.8 128,6 127.7 125.9 127.7 129.5 132.3 133.8 137.8 133.4 Gas and gas liquids................... .66 172.6 Oil and gas drilling,..................... .73 60,0 61.1 59.4 59.2 61 .0 67.0 75.2 Metal, stone, and earth minerals....... 1.43 132.9 147.7 149.1 146.9 140.2 132.1 129.5 122.2 125.7 131.5 139.2 148.9 155.1 153.6 Metal mining.................................... .61 126.4 143.5 145.3 144.3 133.9 125.6 123.8 123.4 128,4 132.7 136,3 147.9 155.3 152.2 Stone and earth minerals................. .82 137.7 150.9 151.9 148,8 144.8 136.9 133.8 121.4 123.7 130,6 141.4 149.7 155,0 154.6 Utilities Electric............................................ 4.04 211.3 221.6 232.6 230.5 209.1 202.8 217.4 237.9 227.1 224.8 214.1 207.9 222,4 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 62 BUSINESS ACTIVITY; CONSTRUCTION □ SEPTEMBER 1969 SELECTED BUSINESS INDEXES (1957-59 = 100, unless otherwise noted) Industrial production Manu­ Prices 4 facturing 2 Ca­ Period Total M F a in jo a r C l m p o r a n o r ­ d k u e E c t t q s g u ro ip u ­ pin M r g ia a s l t s e­ Ma g j r o o M r u i p i n n in d ­ g u s stry U til­ i u p n ( t c t a p i i e o m l c e i n n z i r f t t a g y ) ­ . s tr C t c t a i r o o o u c n n t n c s ­ ­ ­ T N m r o p t o i e u c e t l n m o a r u n a a y l t l ­ — - l g ­ 1 - p m E lo e m n y ­ t - P ro a ll y s ­ T s re a o l t e t a a s i l 3 l s C u o m n e ­ r W m c s o o h a m d l o e l i ­ e ty ­ Total g s o u o m d e s r ment Mfg. ing ities 1951. 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952, 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.0 1953, 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954. 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955. 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956. 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100,2 92 94.7 96.2 1957. 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958. 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74,0 102 97.8 95.2 93.5 98 100.7 100.4 1959. 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81,5 105 101.5 100.1 105.1 105 101.5 100.6 1960. 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 80.6 105 103.3 99.9 106.7 106 103.1 100.7 1961. 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122,3 78,5 108 102.9 95.9 105,4 107 104.2 100.3 1962. 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 82.1 120 105.9 99. 1 113.8 115 105.4 100.6 1963. 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 83.3 132 108.0 99.7 117.9 120 106.7 100.3 1964. 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 85.7 137 111.1 101.5 124.3 128 108.1 100.5 1965. 143.4 142.5 140.3 147,0 144.2 145.0 114.8 160.9 88.5 143 115.8 106.7 136.6 138 109.9 102.5 1966. 156.3 155.5 147.5 172.6 157.0 158.6 120.5 173.9 90.5 145 121.8 113.5 151.7 148 113.1 105.9 1967. 158.1 158,3 148.5 179.4 157.8 159.7 123,8 184.9 85,3 153 125.4 113.6 155,1 153 116.3 106.1 1968. 165.3 164.9 156.7 182.6 165.7 166.8 126.4 201,6 ............ 173 129.2 115.2 167.8 166 121.2 108.7 1968--July......... 166.0 164.7 156.4 182.6 167.4 167.4 130,0 199.3 187 129.4 115.4 167.3 168 121.5 109.1 Aug.......... 164.6 164,8 156.8 181,9 164.2 165,7 129,4 202.1 *84.0 192 129.6 115.3 168.0 170 121.9 108.7 Sept.......... 165.1 165.7 157.3 183.6 165.1 166,3 127,0 204.8 183 129.8 115.4 171.3 169 122,2 109.1 Oct........... 166.0 167.0 159.6 183.0 165.7 167.8 120.7 208.9 200 130,3 115.5 172.3 168 122.9 109. 1 Nov.......... 167.5 167.9 159.2 186.5 167.6 169.1 126.4 206.9 *84.2 183 130.7 115.9 173.9 168 123.4 109.6 Dec.......... 168.7 168.1 160.1 185.3 169.3 170.2 127.4 210.1 185 131.1 116.2 175.3 166 123.7 109.8 1969--Jan........... 169.1 168.2 161.0 183.5 169.6 170.2 125.8 215.1 191 131.7 116.6 175.8 170 124.1 110,7 Feb........... 170.1 169.3 161.7 185.5 170,8 171.8 124.8 214.9 »84.5 205 132.3 116.9 174.3 171 124.6 111.1 Mar.......... 171.4 170.8 162.8 187.8 172.1 173.1 126.7 215.1 177 132.7 117.3 178.2 169 125.6 111.7 Apr.......... 171.7 170.2 161.8 188,4 172.9 173.0 128.8 216.3 | *84.6 183 132.9 117.0 177.8 172 126.4 111.9 May......... 172.5 170.0 160.7 190.0 174.5 173.8 130.3 213.6 210 133.3 117.0 177,7 172 126.8 112.8 June......... 173.8 171.1 162.2 190,4 176.2 174.9 132.2 218,7 180 133.8 117.6 180.3 172 127.6 113.2 July.......... 174.6 172.5 163.7 191,5 176.4 175,5 132.8 221,8 176 133.8 117.5 180.1 171 128.2 113,3 Aug.?. . . . 174.3 172.8 164.0 191 .7 175.8 175.5 132.4 220.5 ........... 134.1 118.4 183.1 172 ........... 113.2 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, J 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; C N a o p t a e. c — ity A u ll t s il e iz ri a e t s i : o n D : a t B a a a se re d s o e n a s d o a n t a a l ly fr o ad m ju s F t e e d d e u ra n l l e R ss e s o e th rv e e r , w i M se c G no ra te w d - . inc P lu r d ic e e s s : d a B t u a r e fo a r u A o la f s L k a a b o a r n d S t H at a is w tic a s ii d b a e t g a i . nning with 1959. 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction 1........................ 54,514 61,732 5,956 6,318 5,170 6,171 4,863 4,543 4,766 4,802 5,003 5,895 7,081 6,255 6,168 By type of ownership: Public....................................... 19,039 19,597 2,256 1,924 1,549 1,728 I ,558 1,278 1,546 1 ,572 1,632 1,791 2,536 2,241 Private I................................... 35,475 42,135 3,700 4,394 3,621 4,443 3,305 3,265 3,220 3,230 3,371 4,104 4,545 4,014 By type of construction: Residential building 1............. 21,155 24,838 2,287 2,295 2,125 2,408 2,043 1,743 1,746 1,820 1,957 2,546 2,620 2,462 2,225 Nonresidential building....... 20,139 22,512 2,414 2,128 1,815 2,370 1,992 1,849 2,145 1,885 1,772 2,136 2,680 2,322 2,370 Nonbuilding............................ 13,220 14,382 1,255 1,895 1,230 1 ,393 828 951 875 1 ,097 1 ,274 1,213 1,780 1,471 1,574 Private housing units authorized. .. 1,141 1,330 1,289 1,290 1,393 1,378 1,425 1,463 1,403 1,477 1,421 1,502 1,323 '1,340 1,206 (In thousands, S.A., A.R.) i 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

SEPTEMBER 1969 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d N f e r a e n o r s t m n i i ­ a ­ l Total Indus­ Bu C il o d m in ­ gs b O u th il e d r ­ Other Total M ta i r U y - H w ig a h y ­ d C v e m o a v n & t e e i s o n l e o t n r p ­ ­ Other 2 trial mercial ings 1 1959 ........................... 55,305 39,235 24,251 14,984 2,106 3,930 2,823 6,125 16,070 1,465 5,761 1,121 7,723 I960............................. 53'941 38;078 21,706 161372 21851 4,180 3,118 6,223 15,863 11366 51437 11175 71885 1961............................. 55’447 38;299 21,680 161619 21780 41674 3,280 5,885 17,148 1,371 51854 1,384 81539 1962 3........................... 59’667 4^798 24,292 171506 2,842 5,144 3,631 5,889 17,869 1,266 6,365 1,524 81714 19634........................... 63'423 44,057 26,187 171870 2,906 4,995 3,745 6,224 191366 1,189 71084 11690 9,403 1964............................. 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1,729 10,590 1965............................. 72’319 50J253 261268 231985 5,118 6,739 4',735 7,393 221066 852 71550 2,019 11,645 1966............................. 75’120 511120 23,971 27,149 61679 6,879 5,037 8,554 24’,000 769 8,355 2.195 12',68l 1967............................. 76^ 160 50,587 23,736 26185! 6,131 61982 41993 8,745 251573 721 81538 2,196 14,118 1968............................. 84,692 561996 281823 28J73 51594 81333 4,873 91373 27,696 824 91295 2.046 15,531 1968 July................... 81,658 54,988 27,770 27,218 4,752 8,272 4,263 9,571 26,670 679 9,103 1 ,763 15,125 Aug.. • .............. 83,736 56 ,'682 281325 28,357 5,575 81641 4,772 9,396 27,054 812 9,181 1 1894 15J67 Sept.................. 85,266 57,444 291350 281094 51492 81534 41539 9,529 27,822 787 91216 2,000 15,819 Oct.................... 87,757 59,259 291823 29,436 6,096 81939 4,680 91721 28,498 1,028 9,214 2,099 16,157 Nov. < .............. 87,812 59,014 30,152 28,862 6,271 8,262 4,716 9,613 28,798 852 9,444 21005 16,497 Dec.................. 88; 068 58,899 30,937 27,962 5,905 8,046 41449 9,562 27,169 1 ,132 91605 2J55 141277 1969—Jan.................... 91,135 63,038 31,247 31,791 6,800 9,971 5,142 9,878 29,097 1,044 Feb................... 92,132 62,616 31,502 31,114 6,318 9,941 5,198 9,657 29,516 1 ,024 Mar.................. '91 ;O75 621419 32,080 30,339 6,019 9,751 4,827 9,742 r28,656 1 ,039 Apr............. '91,739 611320 311288 30,032 5,857 91066 51273 9,836 '291419 1 ,067 90,698 61,462 301764 301698 5 1923 91284 5,428 10,063 291236 1 ,003 June................. 90,865 61 ,557 301202 31 1355 6,050 101020 5,140 10J45 291308 July?................. 90,118 611007 29,’4O9 31 ,'598 61268 9,499 5,532 101299 291111 1 Includes religious, educational, hospital, institutional, and other build­ 4 Beginning 1963, reflects inclusion of new series under "Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in "Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Monthly data are at seasonally adjusted annual rates. Figures private nonresidential groups. for period shown are Census Bureau estimates. NEW HOUSING 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.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- i ly 2 fa - m to i l 4 y - f m a 5- m o r o i e l r y - Total Private Public Total FHA VA 1959. 1,517 268 368 512 369 1,234 283 1,554 1,517 37 458 349 109 121 1960. 1,252 221 292 429 309 '995 257 1,296 1,252 44 336 261 75 104 1961 1,313 247 277 473 316 974 339 1 ;365 013 52 328 244 83 90 1962.................1. .,’..4.6..3. 264 290 531 378 991 471 1 ;492 1,463 30 339 261 78 118 1963 ......................... 11610 261 328 591 431 1 ,021 589 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. 11292 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 56 318 1968--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 31 Sept.............. 1,592 290 355 613 334 944 80 568 140 134 6 23 19 5 30 Oct................ 1,570 217 398 628 327 965 81 524 143 141 3 27 21 5 33 Nov.............. 11733 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......... 1,584 265 430 554 335 828 92 664 136 132 4 23 19 4 32 Apr............... 1,563 255 358 582 368 797 86 680 160 159 1 27 23 4 35 May............. 1 ,509 243 345 587 334 883 84 542 158 156 2 25 21 4 33 Junep........... 1 ,464 233 286 603 342 801 76 587 150 146 4 26 22 5 35 July”............. 11336 183 284 541 328 739 66 531 123 122 1 26 21 5 33 Note.—Starts are Census Bureau series (including farm starts) except office reports of first compliance inspections. Data may not always add in the case of Govt.-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 64 EMPLOYMENT □ SEPTEMBER 1969 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, unless otherwise indicated) Civilian labor force, S.A. Period i p n T o s o N t p t i a t . u u S l l t a . i n A o t o i n . o n a n - l l N ab N o o t . r S i n . f A o t . r h c e e T l f a S o o b r . c A t o a e . r l Total Employed1 Unem­ U (p n e m r e a r m e t c e n p e 2 t l n o t y ) ­ Total In c n u o lt n u a ra g l r i- agric I u n l ture ployed S.A. industries 1963.................... 125,154 50,583 74,571 71,833 67,762 63,076 4,687 4,070 5.7 1964.......................... 127,224 51,394 75,830 73,091 69,305 64,782 4,523 3,786 5.2 1965.......................... 129,236 52,058 77,178 74,455 71,088 66,726 4,361 3,366 4.5 1966.......................... 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967.......................... 133,319 52,527 80,793 77,347 74,371 70,527 3,844 2,975 3.8 1968.......................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1968 ’-Aug......... 135,839 52,047 82,338 78,749 75,973 72,222 3,751 2,776 3.5 Sept............... 136,036 53,900 82,438 78,847 76,000 72,349 3,651 2,847 3.6 Oct................ 136,221 53,744 82,403 78,800 76,002 72,477 3,525 2,798 3.6 Nov.......... 136,420 53,718 82,559 79,042 76,388 72,682 3,706 2,654 3.4 Dec................ 136,619 54,001 82,868 79,368 76,765 72,923 3,842 2,603 3.3 1969—Jan................. 136,802 55,091 83,351 79,874 77,229 73,477 3,752 2,645 3.3 Feb................ 136,940 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 May............... 137,549 54,464 83,593 80,071 77,265 73,460 3,805 2,806 3.5 June.............. 137,737 51 ,857 83,957 80,433 77,671 73,966 3,705 2,762 3.4 July............... 137,935 51,617 84,277 80,756 77,874 74,323 3,551 2,882 3.6 Aug............... 138,127 52,08! 84,584 81,054 78,187 74,553 3,634 2,867 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) Contract Transporta­ Period Total Manufac­ Mining construc­ tion & pub­ Trade Finance Service Govern­ turing tion lic utilities ment 1963........................................................ 56,702 16 995 635 2 963 3 903 11 778 2 877 8 325 9,225 1964........................................................ 58,331 17,274 634 3 050 3 951 12’160 2 957 8 709 9’596 1965........................................................ 60^815 18 062 632 3 186 4 036 12 716 3 023 9*087 10 074 1966........................................................ 63 955 19’214 627 3*275 4 151 13’245 3’100 9*551 10’792 1967........................................................ 65,857 19 447 613 3 208 4,261 13’606 3,225 10*099 11 398 1968........................................................ 67^860 19^768 610 3,267 4’313 14,081 3,383 10,592 11,846 SEASONALLY ADJUSTED 1968 —-Aug........................................... 68 088 19 800 620 3 272 4 327 14 154 3 399 10 625 11 891 Sept........................................... 68,195 19*820 622 3'286 4 333 14*198 3 414 10’635 11*887 Oct............................................ 68 ,'427 19 840 573 3 305 4’341 14 265 3’433 10,721 Il 949 Nov.......................................... 68,664 19897 622 3’313 4 352 14291 3 453 10 787 11*949 Dec............................................ 68 875 19*958 623 3 330 4 360 14271 3 463 10 838 12 032 1969 —Jan............................................. 69 199 19 999 626 3 338 4 353 14 412 3 490 10 900 12 081 Feb.................................... 69 487 20 061 628 3 366 4,373 14*468 3*502 10 967 12’122 Mar........................................... 69,710 20,122 626 3,374 4 399 14*508 3 515 11 *034 12'132 A 4 pr.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 70 9 ’ 0 7 1 8 3 9 2 20 0 1 1 1 1 1 8 6 6 2 2 2 4 3 3 ,3 4 6 0 3 7 4 4 4 4 3 4 9 4 1 1 4 4 ’ 6 5 0 3 9 3 3 3 ’ 5 54 3 1 1 1 11 1 * 0 0 6 4 5 4 1 12 2 * ’ 1 2 4 07 4 June........................................... 70,300 20 ,’198 622 3,466 4*467 14*665 3 557 11*066 12 *259 Julyp......................................... 70’269 20 186 628 3 414 4 489 14 679 3 569 11 055 12’249 Aug p . ...................................... 70,436 20 ,’306 628 3,*371 4,*482 I4,’71O 3*584 11 jio 12,*245 NOT SEASONALLY ADJUSTED 1968r—Aug........................................... 68,205 19 910 636 3 557 4 375 14 114 3 457 10 753 11 403 Sept........................................... 68,610 20 045 629 3 519 4,381 14*184 3*424 10*667 11 *761 Oct............................................ 68,959 20 019 574 3 503 4 363 14 302 3 430 10 732 12 036 Nov.......................................... 69 247 20 036 621 3 379 4*373 14536 3 439 10*755 12*108 Dec............................................ 69 805 20 008 619 3,247 4 370 15 113 3*449 10*773 12*226 1969r—Jan............................................. 68,196 19 803 611 3 024 4 288 14 189 3 448 10 693 12 140 Feb........................................... 68,403 19 891 610 2 999 4 303 14 097 3*467 1 o’792 12*244 Mar........................................... 68’894 19 978 610 3,077 4 346 14 201 3 490 16’913 12 279 Apr............................................ 69 462 19 952 619 3 255 4 403 14 398 3*517 11*044 12’274 May......................................... 69,929 19*982 624 3*404 4’431 14 517 3*534 11 *131 12 * 306 June........................................... 70,980 20 336 638 3 601 4512 14 717 3 585 11 243 12 348 Julyp.......................................... 70,367 20,137 644 3,660 4 534 14 669 3*630 11*254 H *839 Aug.*........................................ 70^42 20,410 644 3,664 4,'531 14,668 3,645 11,243 11,737 Note.—Bureau of Labor Statistics; data include all full- and part­ Data on total and government employment have been revised back time employees who worked during, or received pay for, the pay pe­ to 1964 due to adjustment of State and local government series to riod that includes the 12th of the month. Proprietors, self-employed October 1967 Census of Governments. persons, domestic servants, unpaid family workers, and members of Beginning with 1967, series has been adjusted to Mar. 1968 bench­ the Armed Forces are included. mark. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1968 1969 1968 1969 Aug. June July" Aug." Aug. June July" Aug." Total.............................................................................. 14,519 14,811 14,805 14,915 14,581 14,923 14,698 14,966 Durable goods................................................................ 8 450 8,687 8,687 8,811 8,333 8,781 8,618 8,683 Ordnance and accessories...................................... 197 188 ’187 ' 186 ’ 195 187 ' 185 184 Lumber and wood products.................................. 520 528 523 523 539 544 538 542 Furniture and fixtures........................................... 394 411 406 403 398 412 399 407 Stone, clay, and glass products............................ 518 532 524 526 536 545 539 545 Primary metal industries....................................... I 037 1 076 1 083 1,095 1,040 1 ,103 1 ,098 1,099 Fabricated metal products.................................. 1 07 3 1 122 1 123 1,127 1 ,068 1 134 1 , 104 1,122 Machinery.............................................................. 1 333 1 377 1'375 I ’382 1 '322 1 ,389 1'374 1’371 Electrical equipment and supplies....................... 1 324 1,379 1 384 1,’ 388 1,319 1 375 1 ,356 1,383 Transportation equipment.................................... 1 428 1 434 f 444 1 545 1 276 1 448 1 ' 398 1’381 Instruments and related products.............. 284 292 289 290 285 293 287 291 Miscellaneous manufacturing industries............... 342 348 349 346 355 351 340 358 Nondurable goods......................................................... 6 069 6,124 6,118 6,104 6,248 6,142 6,080 6,283 Food and kindred products.................................. 1J92 1 ’201 1'206 1 ’, 206 1,316 1'189 1,236 1,331 Tobacco manufactures.......................................... 74 69 68 71 81 60 59 78 Textile-mill products......................................... 882 873 873 866 890 884 864 874 Apparel and related products.............................. 1 241 1 255 I 247 1 241 1 258 1 266 I 20? 1 258 Paper and allied products..................................... 540 *556 ’555 558 548 '564 ’557 565 Printing, publishing, and allied industries............ 667 674 674 674 667 675 672 674 Chemicals and allied products.............................. 61 1 623 620 618 617 626 623 624 Petroleum refining and related industries............. 118 119 1 19 118 122 121 123 122 Rubber and misc. plastic products........................ 437 455 457 452 437 456 446 452 Leather‘and leather products................................ 307 299 299 300 312 301 298 305 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 1699 Aug. June July" Aug." Aug. June July" Aug." Aug. June July" Aug." Total............................................................... 40.7 40.7 40.7 40.6 121.69 129.65 129 20 129.11 2 99 3. 17 3. 19 3 18 Durable goods..................... 41.3 41 3 41.2 41.3 130.29 139.44 137 83 138 51 3 17 3 36 3 37 3 37 Ordnance and accessories........................ 41.7 40.9 40. 3 40. 5 134.05 140.76 137.26 139 04 3 23 3 45 3 44 3 45 Lumber and wood products.................... 40.8 40 2 39.8 39.8 107.53 110.30 108.65 110 15 2 61 2 71 2 73 2 74 Furniture and fixtures............................... 40.7 40 7 40.1 40.2 102.18 106.90 |04 01 107.86 2 48 ? 62 2'42 2 65 Stone, clay, and glass products............... 41.9 419 41.8 41.8 128 05 134.41 133 56 134 51 3 02 3 17 3 18 3 18 Primary metal industries........................... 40. 3 41.7 41.5 41.7 142 36 157.92 157 66 156 87 3 55 3 76 3 79 3 78 Fabricated metal products....................... 41.7 41.8 41.5 41.4 132.09 139.86 136.86 138.61 3 16 3. 33 3.33 3. 34 Machinery.................................................. 42.0 42.5 42.2 42.4 139.03 151.66 148.81 148.81 3 35 3.56 3 56 3.56 Electrical equipment and supplies............ 40. 5 40.6 40. 3 40.3 117.97 125.36 122.98 124.22 2.92 3 08 3 09 3 09 Transportation equipment............ 42.2 41.6 42.4 42.2 150.70 160.58 162.21 160 63 3 64 3 86 3 89 3 88 Instruments and related products............. 40.6 40.9 40.8 40.8 120.80 129.15 126 86 127.89 2 99 3 15 3 14 3 1 5 Miscellaneous manufacturing industries... 39.3 39.2 39.2 39. 1 98.11 103.88 101.64 103.49 2.49 2.65 2^64 2.64 Nondurable goods. ..................................... 39.9 39.8 39.7 39.6 110.55 115.31 116 22 116.11 2 75 2 89 2 92 2 91 Food and kindred products...................... 41.0 40.7 40.6 40.7 114.96 120.25 121 95 120 42 2 77 2 94 2 96 2 93 Tobacco manufactures.............................. 38.7 39.5 38.1 36.2 95. 55 111.32 104 15 91 62 2 45 2 79 2 77 2 51 Textile-mill products................................. 41.2 41.2 41.3 40 9 92 51 95 63 95 88 97 58 2 31 2 35 -j 38 Apparel and related products................... 36. 1 36. 2 36. 1 36.0 81.40 83 49 82 08 84 45 2 23 2, 30 2 28 2.32 Paper and allied products......................... 43.0 42.9 43.0 42.9 132.62 138.46 140^18 14L37 3.07 3’.22 3.26 3.28 Printing, publishing, and allied industries. 38.5 38.4 38.5 38.4 135.45 141.31 141.70 143.21 3.50 3.68 3.69 3.71 Chemicals and allied products.................. 41.8 41 8 41.8 4! 8 136 86 144 63 145 18 145 18 3 46 1 4Q Petroleum refining and related industries . 42.2 42.2 42.8 43.0 157.78 no^oo 175^31 171.54 3.73 4.00 4.03 3.98 Rubber and misc, plastic products.......... 41.5 41.3 41.1 41. I 122.30 125 97 125 36 127 72 2 94 3 05 3 08 1 1 n Leather and leather products.................... 38.0 37.4 37.1 36.9 85.41 88.83 87’.75 87.05 2.23 2.35 2.34 2.34 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 66 PRICES □ SEPTEMBER 1969 CONSUMER PRICES (1957-59= 100) Housing Health and recreation Fur­ Apparel Trans­ Period ite A m ll s Food Total Rent o H w s o h n m i e p e r - ­ F c a o o u n i a e d l l l t e r G a i l c n e a i d c s ty ­ o n i p a n is e n g h r d s a ­ ­ up a k n e d e p po tio rt n a­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i e c n n r a g e d d a ­ ­ g O s a o e t n o h r d v d e ­ s r tion tion ices 1929 ..................... 59.7 55.6 85.4 1933 ......................... 45.1 35.3 60. 8 1941 ..................... 51.3 44.2 61.4 64. 3 45.2 88.3 51.2 50.6 47.6 57.3 58.2 1945 ..................... 62.7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75 0 67.3 1958......................... 100.7 101 .9 100.2 100,1 100,4 99.0 100.3 99.9 99.8 99.7 100. 3 100.1 100.4 100.8 99.8 1959 ..................... 101,5 100.3 101,3 101.6 101.4 100.2 102.8 100.7 100.6 103.8 102,8 104.4 102.4 102,4 101.8 I960......................... 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101 .5 102.2 103.8 105,4 108.1 104.1 104.9 103.8 1961......................... 104.2 102.6 103.9 104, 4 104.4 101.6 107.9 101.4 103.0 105.0 107.3 111.3 104.6 107,2 104.6 1962 ..................... 105.4 103.6 104.8 105.7 105,6 102.1 107.9 101.5 103.6 107.2 109, 4 1’14.2 106.5 109,6 105.3 1963 ..................... 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107.1 1964......................... 108.1 106.4 107.2 107.8 109,1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965 ......................... 109.9 108. 8 108.5 108.9 111,4 105.6 107.8 103,1 106.8 111.1 115.6 122.3 109.9 115.2 111.4 1966......................... 113,1 114.2 111.1 110.4 115.7 108.3 108.1 105,0 109.6 112.7 119.0 i27.7 112.2 117,1 114.9 1967........................ 116. 3 115.2 114.3 112.4 120.2 111.6 108.5 108.4 114.0 115.9 123.8 136.7 115.5 120.1 118.2 1968 July............... 121.5 120.0 119.5 115. 1 127.8 115.7 109.5 1 13.1 119.7 119.8 130.2 145.1 120.4 125,9 123.9 Aug............... 121.9 120.5 120.1 115.4 128.8 115.7 109.7 113.3 120.3 120.0 130.5 (45.5 120,9 126.3 124.2 Sept.............. 122.2 120.4 120.4 115.7 129. 1 1 15.8 109.3 113.9 122.2 115.9 131.1 146.4 121.5 126,7 124.4 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. 1 115.9 109.9 114.8 124.0 121.2 132.4 148.2 122. 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 ........... 124.6 121.9 123.3 117.2 133.6 116.9 110.2 115.8 123.9 122.0 133.7 151.3 124.1 128.4 125.8 Mar........ 125.6 122. 4 124.4 117.5 135.7 117.2 110.6 116.4 124.9 124.3 134.3 152.5 124.8 128.7 126.1 126.4 123.2 125.3 117.8 137.1 117.4 111.2 116,9 125.6 124.6 135.1 153.6 125.5 129,6 126.6 May............. 126.8 123.7 125.8 118.1 1 38.0 117.5 111.2 117.4 126.6 124.0 135.7 154.5 125.8 130.2 126.9 June............. 127.6 125.5 126.3 118.5 138.7 117.5 111.3 117.9 127.0 124.6 136.3 155.2 126.2 130.4 127.9 July............... 128.2 126.7 127.0 118.8 140.0 117.4 110.9 118.2 126.8 124.3 137.0 155.9 126.6 130,7 129.1 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59= 100) Industrial commodities Pro­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ c f f e o e a s o e n s d d d e s s d 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 e u tc r b . , ­ L b e u e tc m r . , ­ P e a t p c e . r, M e a t l e s c , . t ­ e c m M a q e h n e r u i a y n d n i ­ p t ­ ­ F t e u u t r c r e n . , i­ N t e m m a r o a l i e l n i n l c ­ s ­ - T e p m t r q o i a o e u r n n n t ip a s t ­ 1 ­ ­ n c M e e o l i l s u a ­ s ­ 1958. 100.4 103.6 102.5 99.5 98.9 96.0 98,7 100.4 100,1 97,4 100.1 99.1 100.0 100,2 99.9 n.a. 100,6 1959. 100,6 97.2 99.9 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101,0 101.2 102.1 100.4 101.2 n.a. 100.8 1960 . 100.7 96.9 100.0 101.3 101.5 105.2 99,6 100,2 99.9 100.4 101.8 101.3 102.9 100.1 101,4 n.a. 101.7 1961 . 100.3 96,0 101.6 100.8 99.7 106.2 100.7 99. 1 96.1 95.9 98.8 100.7 102.9 99.5 101.8 n.a. 102.0 1962. 100.6 97.7 102.7 100.8 100,6 107,4 100.2 97.5 93.3 96.5 100.0 100,0 102.9 98.8 101,8 n.a. 102,4 1963. 100.3 95.7 103.3 100.7 100,5 104.2 99.8 96.3 93.8 98.6 99.2 100.1 103.1 98.1 101.3 n.a. 103.3 1964. 100,5 94.3 103.1 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102,8 103.8 98,5 101,5 n.a. 104.1 1965. 102.5 98.4 106.7 102.5 101,8 109.2 98.9 97.4 92.9 101.1 99,9 105.7 105.0 98,0 101.7 n.a. 104.8 1966. 105.9 105.6 113.0 104.7 102, 1 119,7 101.3 97,8 94.8 105.6 102,6 108,3 108.2 99.1 102,6 n.a. 106.8 1967. 106,1 99.7 111.7 106.3 102,1 115.8 103.6 98.4 97.0 105.4 104.0 109.5 111.8 101 .0 104,3 n.a. 109.2 1968--July................. 109.1 103.9 115.9 108.8 105.8 119.5 103.3 98.2 100,7 119.2 104.9 111.4 115.2 104.1 108.4 n.a. Hl.5 Aug.................. 108.7 101.4 114.9 108.9 106.0 119.5 102.6 98.1 100.6 120.5 104.9 111.3 115.4 104.2 108,7 n.a. 111.6 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 May................. 112.8 110.5 119.4 112.2 106.9 126.1 104.5 98.1 101,1 138.0 108.1 117.5 118.3 105,9 112,6 100.2 112.8 June................. 113,2 111.2 121.4 112.2 107,2 125.7 105,0 98,3 101,2 129.8 108.3 117.9 118.6 105.9 112,8 100.3 115.1 July.................. 113.3 110.5 122.0 112.4 107,7 126.4 105,0 98.2 102,5 125.3 108.4 118.7 1 19.0 106.1 113.0 100.4 115.5 1 For transportation equipment, Dec. 1968= 100. 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SEPTEMBER 1969 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1957-59100) 1968 1969 1968 1969 Group Group July May June July July May June July Farm products : Pulp, paper, and allied products: Fresh and dried produce................ 108.2 126.7 112.9 103. 1 Pulp, paper and products, excluding Grains.............................................. 80.0 86.7 85.6 83.7 building paper and board............... 105.4 108.3 108.6 108 9 Livestock................................ 109.5 123.0 130.4 126.8 Woodpulp........................................... 98.0 98.0 98.0 98 0 Live poultry.................................. 93.8 90.7 89.8 90 2 Wastepaper...................................... 110.5 107.1 108 8 111.2 Plant and animal fibers....... 76 0 67 7 67.7 67 7 Paper.................................................. 113.0 116.7 117 0 117 I Fluid milk. .................................. 130 7 134.1 134 6 1 34 9 Paperboard......................................... 90 6 93 5 93 5 93 7 Eggs.................................................. 91.4 80.6 85.9 117.0 Converted paper and paperboard.. . . 105 3 108.4 108.7 109 0 Hay and seeds................................ 113.2 105.6 106.2 111 3 Building paper and board................. 92 3 100.7 99,4 95.9 Other farm products........................ 101.8 105.6 106.2 106^9 Metals and metal products: Processed foods and feeds: Cereal and bakery products............... 118.4 119.4 119.7 119 9 Iron and steel..................................... 104 8 109 9 110. 3 111 . t Meat, poultry, and fish....................... 113.6 121.0 126 5 127 5 Steelmill products............................. 108 0 112 7 112 8 113 6 Dairy products.................................. , 128 8 132.5 133 0 133 0 Nonferrous metals.............................. 122 3 134 2 135 5 136 1 Processed fruits and vegetables........... 114.7 1 15.7 115.6 116 6 Metal containers................................ 116 8 119 7 119 7 119 7 Sugar and confectionery..................... 116 4 122.7 123 0 122 3 Hardware.............................. 116 9 119 9 119 9 120 5 Beverages and beverage materials .... 109 5 111.8 112.4 112 6 Plumbing equipment.......................... 114 1 117 1 117^9 119 4 Animal fats and oils............................ 64 2 89 0 91 2 96 4 Heating equipment. .................... QS 1 07 0 97 2 97 7 Crude vegetable oils.................... 84 5 81 0 81 9 80 0 Fabricated structural metal products 1110 112 0 Refined vegetable oils................. . 93 5 89 4 89 4 89 4 Miscellaneous metal products... .... 115.7 120.5 1 20 7 121 3 Vegetable oil end products............. 100 2 103 3 102 1 Miscellaneous processed foods........... 114 7 118 6 118 6 119 5 Manufactured animal feeds................ 119^4 114.9 116’9 118^7 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.. . . 126.8 131.9 132.0 132.3 Construction machinery and equip... 129.2 134.3 134,5 134.8 Cotton products.................................. 105.2 104 6 104 5 105 3 Metalworking machinery and equip 129.1 132.1 1 32 3 133.3 Wool products..................................... 103 9 104 3 105 0 105 0 General purpose machinery and Man-made fiber textile products. .... 90.4 92.6 92.7 92 6 equipment....................................... 117.3 120.3 121 2 121.5 Silk yarns............................................. 182 5 157 9 164 6 168 2 Special industry machinery and Apparel................................................ 110 7 112 9 113 3 113 9 equipment (Jan 1961 — 100) 122 0 128 0 128 1 |?9 2 Textile housefurnishings..................... 110 5 102 3 104 2 104 2 Electrical machinery and equip . 102 7 104 5 104 7 104 8 Miscellaneous textile products........... 113 8 114 7 H8.’O 120*3 Miscellaneous machinery................ 114.3 n?;6 117.8 I18J Hides, skins, leather, and products: Furniture and household durables: Hides and skins............................... 101 5 122 6 117 4 1 23 0 Leather................................................. 113 8 121 7 i 21 5 1212 117 2 121 9 122 3 122 8 Footwear............................................. 127 3 132.1 132 3 1 32 7 115 9 119 0 119 3 119 5 Other leather products........................ 112.5 117.0 11 72 117 5 Floor coverings 05 0 94 6 93 8 93 2 Household appliances........................ 92.4 93.0 92.9 93.0 Fuels and related products, and power: Home electronic equipment............... 80.7 78.1 78.1 77.9 Other household durable goods........ 124.5 130.0 130.2 131 .2 Coal..................................................... 105.4 113.5 114,2 115.4 Coke................................................... 117 0 Gas fuels (Jan. 1958=100)................. 120.8 121 .6 121.8 121.6 NonmetalHc mineral products: Electric power (Jan. 1958 =100)......... 101 2 102 5 102 6 102 5 Crude petroleum................................. 99<4 104^7 104 5 104.5 Flat glass........................................... 110 5 114 6 115.2 116 2 Petroleum products, refined............... 102.8 102.4 103.3 103,2 Concrete inoredients 109 4 115 6 115.9 116.1 Concrete products.............................. 108 J 11.16 111.6 112.3 Chemicals and allied products: Structural clay produdts excluding refractories..................................... 112,5 116,8 116.9 116.9 Industrial chemicals............................ 98.2 96.9 97.0 97.7 Refractories ... .... . 112.5 113 6 113.6 113.6 Prepared paint..................................... 114.4 118.7 119 2 119 2 97 6 97 9 100 2 100 9 Paint materials.................................... 92.3 92.8 92 8 93 2 Gypsum products 105 0 108 7 108.7 104 9 Drugs and pharmaceuticals................ 93.4 93.8 93.8 93.8 Glass containers 109 8 116 1 116.1 116.1 Fats and oils, inedible........................ 69.1 83 3 86 8 90 5 105 2 109,0 109.0 109.0 Agricultural chemicals and products.. 101.3 92.1 92.' 1 88.6 Plastic resins and materials................. 81 1 80 8 80 8 80.2 Other chemicals and products............ 110.4 112^7 112.8 112.8 Transportation equipment: Rubber and products: Motor vehicles and equipment.......... 104.2 106,5 106.6 106.6 Railroad equipment (Jan. 1961 = 100). 106.9 111.1 Hl.8 114.3 Crude rubber...................................... 85 0 RQ 5 Tires and tubes.................................... Miscellaneous rubber products........... 106.9 110.2 110.2 111.0 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition......................... 108.7 110.7 110.9 111.2 Lumber................................................ 127.7 155.9 142 3 133 4 Tobacco products 114 9 117 0 123.2 123 4 Millwork.............................................. 118.3 134.3 136.0 135.6 Notions.............................................. 101.0 102^0 102.0 102.0 Plywood......................................... 101 .3 103.5 94 2 93 9 Photographic equipment and supplies 112 8 112 4 112 6 It! 4 Other wood products (Dec. 1966 —100) 106.6 114.7 115.1 115.6 Other miscellaneous products............ 110.7 11L7 112^6 114*1 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. 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A 68 NATIONAL PRODUCT AND INCOME □ SEPTEMBER 1969 GROSS NATIONAL PRODUCT (In billions of dollars) 1968 1969 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968 II III IV I II Cross national product. .................................. 103.1 55.6 124.5 284.8 632.4 684.9 749.9 793.5 865.7 858.7 876.4 892.5 908.7 924.8 Final purchases........................................... 101.4 57.2 120.1 278.0 626.6 675.3 735.1 786.2 858.4 848.8 869.2 882.0 902.1 917.9 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 401.2 432.8 466 3 492.3 536.6 530.3 544.9 550.7 562.0 572.8 Durable goods....................................... 9.2 3.5 9.6 30.5 59.2 66.3 70.8 73.0 83.3 81.8 85.8 86.3 88.4 90.6 Nondurable goods..................................... 37.7 22.3 42.9 98. 1 178.7 191.1 206.9 215.1 230.6 228.5 233.3 234.3 238.6 242.1 Services................................................. 30. 3 20.1 28.1 62.4 163.3 175.5 188.6 204.2 222.8 220.0 225.8 230.1 235.0 240.1 Gross private domestic investment............. 16.2 1.4 17.9 54.1 94.0 108.1 121.4 116.0 126.3 126.6 125.2 133.9 135.2 137.4 Fixed investment.......................................... 14.5 3.0 13.4 47.3 88.2 98.5 106.6 108.6 119.0 116.7 118.0 123.4 128.6 130.5 pjonresidential...................................... • ♦ 10.6 2.4 9.5 27.9 61.1 71.3 81.6 83.7 88.8 86.4 88,1 91.5 95.3 97.8 Structures- ............................................ 5. 0 .9 2.9 9.2 21.2 25.5 28.5 21.9 29.3 28.3 29.0 30. 1 32.3 32. 1 Producers’ durable equipment............ 5.6 1.5 6.6 18.7 39.9 45.8 53.1 55.7 59. 5 58. 1 59. 1 61.4 63.0 65.7 Residential structures............................ 4.0 .6 3.9 19.4 27. 1 27.2 25.0 25.0 30.2 30.3 29.9 31.9 33.3 32.7 Nonfarm.............................................. 3.8 .5 3.7 18.6 26.6 26.7 24.5 24.4 29.6 29.7 29.4 31.4 32.8 32.2 Change in business inventories................... 1.7 - 1.6 4.5 6.8 5.8 9.6 14.8 7.4 7.3 9.9 7.2 10.5 6.6 ' 6.9 Nonfarm. ........................................... ■ ■ 1.8 - 1.4 4.0 6.0 6.4 8.6 15.0 6.8 7.4 10.3 7.5 10.7 6.6 6.7 Net exports rtf goods and services................... 1.1 .4 1.3 1.8 8.5 6.9 5.3 5.2 2.5 3.4 3.6 1.2 1.5 1.6 Exports........................................................ 7.0 2.4 5.9 13.8 37.1 39.2 43.4 46,2 50.6 50.7 53.4 50.6 47.6 57.1 Imports ...................................................... 5.9 2.0 4.6 12.0 28.6 32.3 38.1 41.0 48. 1 47.3 49.7 49.4 46. 1 55.5 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 128.7 137.0 156.8 180.1 200.3 198.4 202.5 206.7 210.0 212.9 Federal,...................................................... 1.3 2.0 16.9 18.4 65.2 66.9 77.8 90.7 99.5 99.0 100.9 101.9 101.6 100.6 National defense............................... . . . 13.8 14. I 50.0 50. 1 60.7 72.4 78.0 11.9 78.8 79.3 79.0 78.5 Other .................................................... 3.1 4.3 15.2 16.8 17. 1 18.4 21.5 21. 1 22. 1 22.5 22.6 22.1 State and local............................................. 7.2 6.0 7.9 19.5 63.5 70. 1 79.0 89.3 100.7 99.4 101.7 104.8 108.5 112.3 Gross national product in constant (1958) dollars ................................................... 20 J. 6 141.5 263.7 355.3 581.1 617.8 658.1 674.6 707.6 705.8 712.8 718.5 723.1 726.7 Note.—Dept, of Commerce estimates. Quarterly data are seasonally sec the Survey of Current Business, July 1968, July 1969, and Supplement, adjusted totals at annual rates. For back data and explanation of series, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1968 1969 1929 1933 1941 1950 1964 1965 1966 1967 1968 Item II III IV P IP National income............................................... 86.8 40.3 104.2 241.1 518. 1 564.3 620.6 654.0 714.4 707.4 724.1 737.3 751.3 765.0 Compensation of employees............................ 51.1 29.5 648 154.6 365.7 393.8 435.5 467.4 513.6 507.0 519.8 532.3 546.0 558.2 Wages and salaries..................................... 50.4 29.0 62.1 146.8 333.7 358.9 394.5 423.5 465.0 459.0 470.7 482.1 493.3 504.3 Private...................................................... 45.5 23.9 51.9 124.4 269.4 289.6 316.8 337.3 369. C 364.5 372.7 382.8 392.5 402.0 Military.................................................... .3 .3 1.9 5.0 11.7 12.1 14.6 16.2 18.0 17.6 18.7 18.3 18.2 18.4 Government civilian................................ 4.6 4.9 8.3 17.4 52.6 57. 1 63. I 70.0 78.0 76.8 79.3 80.9 82.5 84.0 Supplements to wages and salaries.............. .7 .5 2.7 7.8 32.0 35.0 41.0 43.9 48.6 48.0 49.1 50.2 52.7 53.8 Employer contributions for social in­ surance ................................................ .1 . 1 2.0 4.0 15.4 16.2 20.3 21.8 24.4 24. 1 24.7 25.3 27.3 27.9 Other labor income................................. .6 .4 .1 3.8 16.6 18.7 20.7 22. I 24.2 23.9 24.5 25.0 25.5 26.0 Proprietors' income......................................... 15.1 5.9 175 37.5 52.3 57.3 61.3 61.9 63.8 63.6 64.1 64.1 64.6 66.5 Business and professional. ......................... 9.0 3.3 11.1 24.0 40.2 42.4 45.2 47.2 49.2 49.2 49.3 49.7 49.7 50.1 Farm............................................................ 6.2 2.6 6.4 13.5 12. 1 14.8 16. 1 14.7 14.6 14.3 14.8 14.4 14.9 16.4 Rental income of persons................................ 5.4 2.0 3.5 9.4 18.0 19.0 20.0 20.8 21.2 21.2 21.2 21.4 21.5 21.6 Corporate profits and inventory valuation adjustment................................................ 10.5 -1.2 15.2 37.7 66.3 76.1 82.4 79.2 87.9 88.2 90.6 90.3 89.5 88.5 Profits before tax........................................ 10.0 1.0 17.7 42.6 66,8 77.8 84.2 80.3 91.1 90.7 91.5 94.5 95.5 94.7 Profits tax liability................................... 1.4 .5 7.6 17.8 28.3 31.3 34.3 33.0 41.3 41.1 41.4 42.9 43.4 43.1 Profits after tax........................................ 8.6 .4 10.1 24.9 38.4 46.5 49.9 47.3 49.8 49.7 50.0 51.6 52.2 51.6 Dividends............................................. 5.8 2.0 4.4 8.8 17.8 19.8 20.8 21.5 23.1 22.9 23.6 23.8 23.8 24.3 Undistributed profits........................... 2.8 -1.6 5.7 16.0 20.6 26.7 29. 1 25.9 26.7 26.7 26.5 27.8 28.4 27.3 Inventory valuation adjustment................. .5 -2.1 -2.5 -5.0 — .5 -1.7 -1.8 -1.1 -3.2 -2.6 -.9 -4.2 -6.1 -6.2 Net interest...................................................... 4.7 4. 1 3.2 2.0 15.8 18.2 21.4 24.7 28.0 27.5 28.4 29.3 29.8 30.3 1 The estimate of corporate income tax assumes continuance of the Note.—Dept, of Commerce estimates. Quarterly data are seasonally surcharge at 10 per cent and discontinuance of the investment tax credit adjusted totals at annua! rates. See also Note to table above. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ NATIONAL PRODUCT AND INCOME A 69 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 II III IV Ir IP Gross national product................................ 103.1 55.6 124.5 284-8 632.4 684.9 749.9 793.5 865.7 858.7 876.4 892.5 908.7 924.8 Less: Capital consumption allowances.... .. 7.9 7.0 8.2 18.3 56.1 59.8 63.9 68.6 73.3 73.0 73.7 74.6 75.9 77.2 Indirect business tax and nontax lia­ bility .............................................. 7.0 7. 1 11.3 23.3 58.4 62. 5 65.7 70. 1 77.9 77.0 79.4 81.4 83.3 85.7 Business transfer payments................. .6 .7 . 5 .8 2. S 2.7 3.0 3.2 3.4 3.4 3.4 3.5 3.5 3.6 Statistical discrepancy................... ,7 . 6 .4 1.5 — 1.3 -3. 1 -1.0 -1.0 -2. 5 -1.6 -3.3 -3.4 -4.2 -5.8 Plus: Subsidies less current surplus of gov­ ernment enterprises........... -. 1 . 1 .2 1.3 1.3 2.3 1.4 .8 .7 1. 1 .9 1. 1 .9 Equals: National income................................. 86.8 40.3 104.2 241.1 518. 1 564 3 620.6 654.0 714.4 707.4 724.1 737.3 751.3 765.0 Less: Corporate profits and inventory valu­ ation adjustment.............. 10. 5 — 1.2 15.2 37.7 66.3 76.1 82.4 79.2 87.9 88.2 90.6 90. 3 89.5 88.5 Contributions for social insurance. ... .2 .3 2.8 6.9 27.9 29.6 38.0 42.4 47.0 46.5 47.6 48.6 52.7 53.8 Excess of wage accruals over disburse­ ments. ................................... Plus: Government transfer payments........... .9 1 .5 2.6 14.3 34.2 37.2 41.1 48.8 55.8 55.3 56.7 58.1 60.1 61.3 Net interest paid by government and consumers..................................... 2.5 1.6 2.2 7.2 19.1 20.5 22.2 23.6 26. 1 25.7 26.4 27.4 27.9 28.5 Dividends................ ........................... 5.8 2.0 4.4 8.8 17.8 19.8 20.8 21.5 23. 1 22.9 23.6 23.8 23.8 24.3 Business transfer payments................. .6 .7 . 5 .8 2.5 2.7 3.0 3.2 3.4 3.4 3.4 3.5 3.5 3.6 Equals: Persona! income................................ 85.9 47.0 96. 0 227.6 497.5 538.9 587.2 629.4 687.9 680.1 696.1 711.2 724.4 740.5 Less: Personal tax and nontax payments.... 2.6 1.5 3.3 20.7 59.4 65.7 75.4 82.9 97.9 92.7 102.6 107.0 114.2 118.5 Equals: Disposable personal income............... 83.3 45.5 92.7 206. 9 438.1 473.2 511.9 546.5 590.0 587.4 593.4 604.3 610.2 622.0 Less ■ Personal outlays.................................. 79.1 46.5 81.7 193.9 411.9 444.8 479.3 506.2 551.6 545.1 560.2 566.2 577.7 588.8 Personal consumption expenditures. 77.2 45.8 80.6 191.0 401.2 432.8 466.3 492.3 536.6 530.3 544.9 550.7 562.0 572.8 Consumer interest payments. ...... 1.5 .5 .9 2.4 10. 1 11.3 12.4 13. 1 14.2 14.0 14.4 14.7 15.0 15.2 Personal transfer payments to for­ eigners.................................. .3 .2 . 2 . 5 .6 .7 . 6 .8 . 8 .7 .8 .7 .7 .7 Equals: Personal saving. ................................. 4.2 -.9 11.0 13.1 26.2 28.4 32.5 40.4 38.4 42.3 33.2 38.0 32.5 33.3 Disposable personal income in constant (1958) dollars...................................................... 150.6 112.2 190.3 249.6 407.9 435.0 458.9 477.7 497.6 497.4 498.9 502.1 502.6 506.2 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted quarterly totals at annual rates. See also Note to table opposite. PERSONAL INCOME (In billions of dollars) 1968 1969 Item 1967 1968 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May r Juner July" Total personal income......................... 629.4 687.9 691.0 696.1 701.1 706.2 711.5 716.0 718.7 723.9 730.7 735.6 740.0 746.1 752.3 Wage and salary disbursements.......... 423.5 465.0 467.2 470.3 474.5 478.2 482.2 485.8 489.3 492.6 497.9 500.8 503.8 508.5 513.5 Commodity-producing industries... 166.5 181.5 181.8 182.7 184.6 186.2 187.5 189.6 190.1 190.6 193.8 195.2 196.2 198.3 199.2 Manufacturing only...................... 134.2 345.9 146.7 147. 1 143.6 149.6 750.5 157.8 152.4 752.5 754.9 155.8 156.3 157.8 158.9 Distributive industries..................... I0O.3 109.2 109.7 110.8 111.8 112.5 113.5 113.3 114.6 115.6 116.4 117.2 118.3 119.5 120.6 Service industries............................ 70.5 78.3 78.3 78.8 79.6 80.8 82.0 83.0 84.5 85.6 86.3 86.4 87.0 87.8 87.8 Government. .................................. 86.2 96 0 97.3 98.0 98.4 98.7 99.1 99.9 100. 1 100.8 101.4 101.9 102.3 102.9 105.9 Other labor income............. . 22.1 24.2 24.2 24.5 24.7 24.8 25.0 25. 1 25.3 25.5 25.6 25.8 25.9 26.1 26.3 Proprietors’ income............................ 61.9 63.8 63.9 64.2 64.2 64.0 64.0 64.2 64.0 64.7 65.0 65.8 66.5 67.3 67.4 Business and professional............... 47.2 49.2 49.2 49.2 49.5 49.5 49.7 49.8 49.5 49.8 49.7 50.0 50. 1 50.4 50.6 Farm............................................... 14.7 14.6 14.7 15.0 14.7 14.5 14.3 14.4 14.5 14.9 15.3 15.8 16.4 16.9 16.8 Rental income..................................... 20.8 21.2 21.2 21.3 21.3 21.3 21.4 21.4 21.4 21.5 21.5 21.5 21.6 21.6 21.7 Dividends............................................ 21.5 23.1 23.4 23.6 23.7 23.9 24.0 23.6 23.6 23.8 24.1 24.2 24.3 24.5 24.6 Personal interest income.................... 48.3 54.1 54.2 54.8 55.4 56.0 56.7 57.3 57.4 57.6 57.9 58.4 58.8 59.2 59.5 Transfer payments.............................. 52.0 59.2 59.7 60.4 60.3 61.2 61.5 62.1 63.0 63.5 64.3 64.7 64.9 65.2 65.8 Less: Personal contributions for social insurance...................................... 20.6 22.6 22.8 22.9 23.0 23.2 23.2 23.4 25.3 25.3 25.6 25.7 25.8 26.1 26.4 Nonagricultural income....................... 609.7 667.9 670.9 675.5 680.9 686.1 691.5 695.9 698.5 703.1 709.5 713.8 717.7 723.4 729.8 Agriculture income.............................. 19.7 20. 1 20.1 20.6 20.2 20.1 20.0 20.1 20.2 20.7 21.2 21.8 22.3 22.7 22.6 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 70 FLOW OF FUNDS □ SEPTEMBER 1969 SAVING, INVESTMENT, AND FINANCIAL FLOWS (In billions of dollars) 1966 I 1967 1968 Transa o c r t i s o e n c c to a r tegory, 1964 1965 1966 1967 1968 IV I II III IV I II III IV I. Savings and investment 1 Gross national saving........................ 160.3 181.6 196.7 192.1 214.6 202.5 188.2 185.8 193.2 200.2 202.4 211.1 217.9 225.9 1 2 Households................................... 98.3 108.9 118,6 129.6 141.6 125.3 125.3 125.4 129.6 137.1 138.C 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 1 -.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.C 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.<1 21.5 23.6 25.C 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 -1.1 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 11.1 4.6 4.1 4.0 4.9 4.8 9.0 9.4 12.9 11.8 28 29 Bank 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 -7.1 -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 A t savings instit.............. 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 .1 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 HL Direct leading 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 fi.l 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

SEPTEMBER 1969 □ FLOW OF FUNDS A 71 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1966 1967 1968 1964 1965 1966 1967 1968 or sector IV I II III IV I II HI IV I. Demand deposits and currency 1 Net incr. in banking system liability. . 7.4 7.6 2.6 14.7 13.2 8.8 8.2 -.9 29.4 21.8 -8.7 1.0 34.8 25.8 1 2 U.S. Govt, deposits......................... .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 2 3 Other............................................ 7.3 8.6 3.0 13.5 14.5 7.6 8.8 14.0 16.0 15.0 -1.3 15.9 9.4 33.9 3 4 Domestic sectors...................... 6.8 8.3 3.3 12.7 13.8 8.2 12.0 11.5 15.5 11.5 -.3 14.8 11.2 29.6 4 5 Households........................... 6.4 7. 1 1.9 12.4 14.9 8. 1 13.6 14.2 7.3 14.5 1.7 12. 1 27.0 18.2 5 6 Nonfinancial business........... -2. 1 -1.7 .7 -1.5 1.2 — 1.3 -4. 1 -3.9 4.2 -2.5 3.3 5.5 -9.2 5.5 6 7 State and local govts............ 1.2 -.2 .8 .3 .6 -.1 3.3 1.0 -2.9 .4 .7 -.8 1.9 7 8 Financial sectors.................. .3 .7 .4 .7 12. 1.6 1.3 .9 .4 .4 -.4 1.4 2.6 1.2 8 9 Mail float.............................. ,9 2.5 - . 5 .8 -4.1 -.2 -2.0 .4 2.6 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 .5 3.5 -1.0 1.2 -1.9 4.3 10 II. Time and savings accounts 11 Net increase—Total.......................... 30.4 33.0 20.3 40.8 32.5 15.5 52.3 45*4 42.0 23.5 3t.2 16.5 43.6 38.5 11 12 At commercial banks—Total.... 14.5 20.0 13.3 23.8 20.1 6.2 35.1 23.7 23.7 12.7 18.3 4.3 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 .5 -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 18.0 17.9 18.7 8.5 17.6 6.2 16.4 19.2 16 17 At savings institutions................. 15.9 13.0 7.1 17.0 12.4 9.3 17.2 21.7 18.3 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................. 4.0 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 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 I -4.2 2.3 9.3 (.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 4.1 -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 31 32 Non guaranteed......................... .3 .3 .4 .5 .7 .4 .8 1.4 -.3 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 13.5 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................ 146 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 43 44 Finance companies...................... 2.1 1.9 .8 .6 .7 -.4 1.7 -.3 1.0 . 1 .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 1.5 -1.9 -2.8 2.1 -1.9 -10.3 -7.0 2.8 -2.7 52 53 Security brokers and dealers. . . -.1 . 1 -.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 54 55 Portfolio purchases............... 1.1 1.6 1.3 1.6 1.9 2.5 3.0 1.3 3.1 -1.1 -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 25.8 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 J5. 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 11.0 11.5 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 Ioans 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 74 Note.—Quarterly data are seasonally adjusted totals at annual rates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 1969 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1967 1968 1969 Item 1966 1967 1968 IV I n in IV IP Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total 1..................... 43,360 46,188 50,594 11,667 11,934 12,668 13,344 12,653 11,890 Merchandise........................................................... 29,389 30,681 33,598 7,601 7,941 8,395 8,879 8,383 7,474 Military sales........................................................ 829 1,240 1,427 332 305 353 406 364 416 Transportation.................................................. 2,608 2,775 2,924 682 717 731 757 720 637 Travel..................................................................... 1,590 1,646 1 ,770 423 440 424 450 456 508 Investment income receipts, private...................... 5,659 6,234 6,934 I ,709 1,562 1 ,768 1,828 1 ,777 1,841 Investment income receipts, Govt......................... 593 638 765 170 209 205 212 140 234 Other services......................................................... 2,693 2,973 3,177 750 760 792 812 813 780 Imports of goods and services—Total........................ -38,081 -41,011 -48,078 -10,706 -11,463 -11,827 -12,435 -12,352 -11,525 Merchandise........................................................... -25,463 -26,821 -32,972 -7,154 -7,817 -8,131 -8,566 -8,458 -7,577 Military expenditures............................................. -3,764 -4,378 -4,530 -1,112 -1,102 -1,116 -1,143 -1,169 -1,198 Transportation....................................................... -2,922 -2,990 -3,248 -763 -785 -786 -841 -836 -742 Travel..................................................................... -2,657 -3,195 -3,022 -739 -763 -732 -792 -735 -791 Investment income payments................................ -2,142 -2,362 -2,933 -607 -671 -742 -770 -749 -894 Other services......................................................... -1,133 -1,266 -1,374 -331 -325 -320 -323 -405 -323 Balance on goods and services!.................................. 5,279 5,177 2,516 961 471 841 909 301 365 Remittances and pensions........................................... -923 -1,196 -1,159 -253 -276 -274 -325 -285 -283 1. Balance on goods, services, remittances and pensions.............................................................. 4,356 3,981 1,357 708 195 567 584 16 82 2. U.S. Govt, grants and capital flow, net................. -3,444 -4,224 -3,955 -1,072 -1,097 -1,055 -968 -835 -783 Grants,2 loans, and net change in foreign currency holdings, and short-term claims........... -4,676 -5,227 -5,347 -1,360 -1,426 -1,365 -1,301 -1,254 -1,104 Scheduled repayments on U.S. Govt, loans. . . 803 997 1,123 288 287 307 278 250 277 Nonscheduled repayments and selloffs............. 429 6 269 * 42 3 55 169 44 3. U.S. private capital flow, net................................. -4,310 -5,655 -5,157 -1,797 -806 -1,537 -1,868 -947 -1,201 Direct investments............................................. -3,639 -3,154 -3,025 -956 -472 -1,009 -1,262 -283 -776 Foreign securities............................................... -481 -1,266 -1,266 -301 -311 -164 -337 -455 -325 Other long-term claims: Reported by banks........................................ 337 255 358 140 49 165 4 133 Reported by others........................................ -112 -281 -174 -85 34 -32 -57 -119 -85 Short-term claims: Reported by banks......................................... -84 -730 -89 96 194 -255 -124 -62 Reported by others........................................ -331 -479 -960 -455 -293 -575 -122 30 -86 4. Foreign capital flow, net, excluding change in liquid assets in U.S......................................... 2,532 3,360 8,564 480 1,556 2,517 1,806 2,688 1,599 Long-term investments...................................... 2,156 2,411 5,942 355 1,300 1,461 1 ,267 1 ,915 1,635 Short-term claims............................................... 296 499 750 132 43 269 236 202 -44 Nonliquid claims on U.S. Govt, associated with— Military contracts........................................... 346 64 -137 -120 -28 6 -141 27 -79 U.S. Govt, grants and capital....................... -205 -84 2 -12 -5 15 — 6 -2 Other specific transactions............................. -12 1 -3 -10 -27 -6 41 -10 -8 Other nonconvertible, nonmarketable, medium-term U.S. Govt, securities3................. -49 469 2,010 135 273 772 409 556 95 S. Errors and unrecorded transactions....................... -489 -1,007 -717 -6 -410 -540 286 -52 -1,398 Balances A. Balance on liquidity basis Seasonally adjusted (« 1+ 2+34-4+5)... -1,357 -3,544 93 -1,688 -564 -51 -162 870 -1,704 Less: Net seasonal adjustments.............. 191 -297 -96 269 124 -388 Before seasonal adjustment....................... -1.357 -3,544 93 -1,879 -267 45 -431 746 -1,316 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted......................... -1,357 -3,544 93 -1,688 -564 -51 -162 870 -1,704 Plus: Seasonally adjusted change in liquid assets in the U.S. of— Commercial banks abroad............................ 2,697 1,272 3,450 902 457 2,358 724 -89 3,001 Other private residents of foreign countries.. 212 414 374 227 4 102 45 223 -23 International and regional organizations other than IMF........................................ -525 -214 63 -45 79 -86 19 51 -88 Less: Change in certain nonliquid liabilities to foreign central banks and govts............... 761 1,346 2,341 313 355 770 529 687 35 Balance B, seasonally adjusted.......................... 266 -3,418 1,639 -917 -379 1,553 97 368 1,151 492 -470 3 25 442 -560 Before seasonal adjustment................................ 266 -3,418 1,639 -1,409 91 1,550 72 -74 1,711 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1967 1968 1969 Item 1966 1967 1968 IV I II III IV P Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis...................... 1,357 3,544 -93 1,879 267 -45 431 -746 1,316 Change In U.S. official reserve assets (increase, —)..................................................... 568 52 -880 -181 904 -137 -571 -1,076 -48 Gold.............................................................. 571 1,170 1,173 1 ,012 1,362 22 -14 -137 56 Convertible currencies.................................. -540 -1 ,024 -1,183 -1,145 -401 267 -474 -575 -73 IMF gold tranche position.......................... 537 -94 -870 -48 -57 -426 -23 -364 -31 Change in liquid liabilities to all foreign accounts 789 3,492 787 2,060 -637 92 1,002 330 1,364 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities4............................................. -945 455 -10 212 100 -49 -61 -25 Marketable U.S. Govt, bonds and notes4. -245 48 -379 -3 -359 8 -26 -2 -3 Deposits, short-term U.S. Govt, securities, etc................................................... -582 1,495 -2,708 1,091 -1,107 -2,187 37 549 -1,679 177 22 — 3 8 -11 1 Commercial banks abroad........................... 2,697 1 ,272 3,450 578 638 2,266 976 -430 3,181 Other private residents of foreign countries. 212 414 374 227 4 102 45 223 -23 International and regional organizations other than IMF......................................... -525 -214 63 -45 79 -86 19 51 -88 B. Official reserve transactions................................. -266 3,418 -1,639 1,409 -91 -1,550 -72 74 -1,711 Change in U.S. official reserve assets (increase, — )..,............................................ 568 52 -880 -181 904 -137 -571 -1,076 -48 Change in liquid liabilities to foreign central banks and govts, and IMF (see detail above under A.)...................................................... -1 ,595 2,020 -3,100 1,300 -1,358 -2,190 -38 486 -1,706 Change in certain nonliquid liabilities to foreign centra] banks and govts.: Of U.S private organizations..................- 793 894 535 190 116 ISO 131 138 -45 Of U.S. Govt............................................. -32 452 1,806 100 247 627 406 526 88 1 Excludes transfers under military grants. Note.—Dept, of Commerce data. Minus sign indicates net payments 2 Excludes military grants. (debits); absence of sign indicates net receipts (credits). Details may not 3 Includes certificates sold abroad by Export-Import Bank. add to totals because of rounding. * With original maturities over 1 year. 2. MERCHANDISE EXPORTS AND IMPORTS (In millions of dollars seasonally adjusted) Exports 1 Imports 2 Export surplus Period 1966 1967 1968 1969 1966 1967 1968 1969 1966 1967 1968 1969 Month: Jan<................... 2,298 2,639 2,814 32,093 1,966 2,317 2,687 ’2,018 332 322 127 75 Feb................... 2,353 2,582 2,775 32,297 2,013 2,216 2,592 ’2,655 339 366 184 -359 Mar................... 2,530 2,525 32,439 33,196 2,050 2,166 32,589 ’2,981 480 359 -150 215 Apr.................... 2,317 2,608 32,855 33,355 2,091 2,198 32,604 ’3,177 226 410 251 178 May,................. 2,416 2,549 2,740 33,292 2,061 2,118 2,755 ’3,276 355 432 -15 16 June................... 2,485 2,582 2,870 33,213 2,102 2,184 2,792 ’3,188 383 398 78 25 July................... 2,469 2,601 2,858 3,172 2,216 2,245 2,725 3,066 253 357 133 106 Aug.................... 2,460 2,566 32,950 2,137 2,145 2,872 324 421 78 Sept................... 2,503 2,597 33,211 2,288 2,198 2,951 214 399 261 Oct.................... 2,616 2,415 32,631 2,303 2,254 2,736 313 161 -105 Nov....... 2,491 2,671 2,972 2,195 2,396 2,883 296 275 89 Dec.................... 2,467 2,677 2,977 2,196 2,493 2,908 271 184 70 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 8,465 9,859 6,253 6,500 8,151 9,641 964 1 ,240 314 218 Ill...................... 7,431 7,764 9,019 6,641 6,588 8,548 790 1,177 471 IV...................... 7,575 7,763 8,580 6,694 7,143 8,527 881 620 53 Year *................... 29,403 31,011 34,092 25,617 26,928 33,093 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 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus Note.—Bureau of the Census data. Details may not add to totals be­ entries into bonded warehouses. cause of rounding. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 74 U.S. GOLD TRANSACTIONS □ SEPTEMBER 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 II HI IV I II Western Europe: Austria......................... -1 -143 -82 -55 -100 -25 Belgium............................. -141 -144 -63 -40 -83 -58 -33 France............................... -173 -456 -518 -405 -884 -601 600 220 240 140 50 275 Germany, Fed. Rep. of... -34 -23 -225 Ireland............................... -1 -2 -2 -2 -52 -32 -11 3 Italy.................................... 100 200 -80 -60 -85 -209 -25 -76 Netherlands...................... -249 -25 -60 -35 -19 30 Spain.................................. -114 -156 -146 -130 -32 -180 Switzerland................... -324 -125 102 -81 -50 -2 -30 -50 -25 -25 United Kingdom............... -550 -306 -387 329 618 150 80 -879 -835 50 15 Bank for Inti. Settlements. -36 -23 Other................................. -96 -53 -12 i -6 -35 -49 16 -47 -22 -16 -8 -1 117 Total.......................... -1,718 -754 -1,105 -399 -88 -1,299 -659 -980 -669 163 213 150 -52 292 Canada.................................. 190 200 150 50 Latin American republics: Argentina..................... -50 -90 85 -30 -39 -I -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 -7 -3 -3 -7 -5 Total.......................... -100 -109 175 32 56 17 -41 9 -65 -12 -18 -8 -7 -7 Asia: Iraq.................................. -30 -10 -4 -21 -42 -28 Japan................................. -15 -56 Lebanon............................ -21 -32 -11 -tl -1 -95 -21 Malaysia........................... -1 -34 -24 Saudi Arabia..................... -11 -48 -13 -50 -25 -25 Singapore.......................... -81 -23 -28 I 1 Other................................. -57 -32 -47 12 14 -14 -15 -22 -65 -26 -18 -6 5 16 Total.......................... -113 -101 -93 12 3 -24 -86 -44 -366 -146 -71 -6 5 28 All other,.............................. -38 -6 -1 -36 -7 -16 -22 2-166 2-68 -16 2-51 -1 -2 1 Total foreign countries......... -1,969 -970 -833 -392 -36 -1,322 -608 -1,031 -1,118 -10 73 136 -57 316 Inti. Monetary Fund 3...... 4 300 150 5-225 177 22 -3 -11 1 1 Grand total................ -1,669 -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 -22 73 136 -56 317 1 Includes purchase from Denmark of $25 million. 4 IMF sold to the United States a total of $800 million of gold ($200 2 Includes sales to Algeria of $150 million in 1967 and $50 million in million in 1956, and $300 million in 1959 and in 1960) with the right of 1968 repurchase; proceeds from these sales invested by IMF in U.S. Govt, J Includes IMF gold sales to the United States, gold deposits by the securities. IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The first 5 Payment to the IMF of $259 million increase in U.S. gold subscription, withdrawal, amounting to $17 million, was made in June 1968. less gold deposits by the IMF. Notes to Table 5 on opposite page: 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 (see Table 6). 4 Represents a $600 million IMF gold sale to United States (1957), 1 Positive figures represent purchases from the IMF of currencies of less $6 million gold purchase by IMF from another member with U.S. other members for equivalent amounts of dollars; negative figures repre­ dollars (1948). sent repurchase of dollars, including dollars derived from charges on 5 Includes $259 million gold subscription to the IMF in June 1965 for drawings and from other net dollar income of the IMF. The United a U.S. quota increase, which became effective on Feb. 23, 1966. In figures States has a commitment to repay drawings within 3 to 5 years, but only published by the IMF from June 1965 through Jan. 1966, this gold sub­ to the extent that the holdings of dollars of the IMF exceed 75 per cent of scription was included in the U.S. gold stock and excluded from the the U.S. quota. Drawings of dollars by other countries reduce the U.S. reserve position. commitment to repay by an equivalent amount. 3 Represents the U.S. gold tranche position in the IMF (the U.S. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota minus the holdings of dollars of the IMF), which is the amount quota was increased to $4,125 million in 1959 and to $5,160 million in that the United States could draw in foreign currencies virtually automati­ Feb. 1966. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ U.S. GOLD STOCK; POSITION IN THE IMF A 75 4. U.S. GOLD STOCK, HOLDINGS OF CONVERTIBLE FOREIGN CURRENCIES, AND RESERVE POSITION IN IMF (In millions of dollars) Gold stock 1 Con­ Reserve Gold stock > Con­ End of year r T es o e t r a v l e v fo e r r e ti i b g l n e pos in ition End of month re T s o e t r a v l e v fo e r r e ti i b g l n e ' p R o e s s i e ti r o ve n assets Total 2 Treasury currencies IMF 3 assets Total 2 Treasury curren­ IM in F 3 cies 5 1956....................... 23,666 22,058 21,949 1,608 1968—Aug............ 14,427 10,681 10,367 2,817 929 1957....................... 24,832 22,857 22’781 1,975 Sept............ 14,634 10^755 10,367 2,953 926 1958....................... 22,540 20’582 20’534 1,958 Oct........ 14,427 10’788 10,367 2 703 936 1959....................... 21 ,'504 19,507 19^456 1,997 Nov............ 15'660 10,897 10,367 3,655 1,108 1960....................... 19’359 17^804 17,767 1,555 Dec............ 15’710 10’892 10,367 3’528 1 290 1961....................... 18,753 16,947 16,889 116 1,690 1969—Jan............. 15,454 10,828 10,367 3,338 1 ,288 1962....................... 17 ,’220 16^057 15^978 99 1 064 Feb............. 15^499 10’801 10367 3 '399 1 299 1963....................... 16,843 15,596 15,513 212 1,035 Mar. 15,758 10’836 10,367 3,601 1 '321 1964....................... 16,672 15,471 15’388 432 769 Apr............ 15,948 10,936 10,367 3,624 1 388 1965....................... 15350 <13306 413;733 781 *863 May........... 16'070 1 1 J53 10 367 3’474 1 443 June. 16,057 11,153 10.367 3’355 1 ,549 1966....................... 14,882 13,235 13,159 1,321 326 July........... 15,936 11 '144 10,367 3,166 1 ,’626 1967....................... 141830 12'065 11 ',982 2’345 420 Aug............ 16,195 11,154 10,367 3',399 1 ,642 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 22 for gold held under earmark at F.R. Banks for tually automatically if needed. Under appropriate conditions the United foreign and international accounts. Gold under earmark is not included States could draw additional amounts equal to the U.S. quota. See Table 5. in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. transactions with IMF T o r t a h n e s r a c c o ti u o n n t s ri e b s y re U se .S rv . e Period with IMF position P s t u d a io b y o n m o s ll s a c f e r r n i i s n p t s ­ by s g N I a o M l e e ld t s F 1 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 ­ ­ I i M d n o c F i o l n la m n rs e e t D d ra o w o lla i f n rs gs R m e e i p n n a t y s ­ c T ha o n ta g l e Amount P q e U u r o . o c S f t e a . nt p i ( e n e r n i I o d M d o ) F f 3 dollars 1946—1957............................ 2,063 4 594 -45 -2,664 827 775 775 28 1,975 1958—1963............................ 1,031 150 60 -1,666 2,740 2,315 3,090 75 1 ,035 1964—1966............................ 776 ................. 1,640 45 -723 6 1,744 4,834 94 5326 1967....................................... ................. 20 -114 -94 4,740 92 420 1968....................................... -84 20 -806 -870 3,870 75 1 ,290 1968—Aug............................. ................. -1 -11 -12 4,231 82 929 Sept............................. 3 3 4,234 82 926 Oct.............................. 2 -12 -10 4,224 82 936 Nov............................. -125 -I -46 -172 4,052 79 1,108 Dec.............................. -159 4 -27 .........-.1..8...2.. 3,870 75 1,290 1969—Jan.............................. ................. 2 2 3,872 75 1,288 Feb.............................. 2 -13 -11 3,861 75 1,299 Mar............................. 2 -24 -22 3,839 74 1,321 Apr.............................. 1 -68 -67 3,772 73 1,388 May............................ 1 -56 -55 3,717 72 1,443 June............................ 5 I -112 -106 3,611 70 1,549 July............................. 2 -79 -77 3,534 68 1,626 Aug............................. -36 20 -16 3,518 68 1 ,642 For notes see opposite page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 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 Official institutions 3 Banks and other foreigners Non­ p E e o r n i f o d d Total S li t a h er b o m r il t ­ ­ M a a b r l k e e t­ c m o a n a b v r l k e e e r t t ­ ­ S li t a e h b r o m i r l t ­ ­ M a a b rk le e t­ S li t a e h b r o m r il t ­ ­ M a a b r l k e e t­ Total G d o e l ­ d in G v o e l s d t ­ Total it p ie o s rt e re d ­ G U o .S vt . , U ib . l S e . Total i p tie o s rt e re d ­ G U o .S vt . , Total i p tie o s rt e re d ­ G U o .S vt . , posit 1 ment 2 in b a b U n y k . S s . n b o o a t n n e d s d s 4 T b r o u e n r a y d s s ­ in b a b U n y k . S s . n b o a o t n n e d d s s 4 in b a U b n y . k S s . 6 n b o o a t n n e d d s s 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 1 2 2 1 0 , , 0 9 2 9 7 4 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 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 54 2 1 5 7 7 5 5 0 0 7 79 7 1 5 (22,853 800 800 11,830 10,940 890 8,275 7,759 516 1,948 703 1,245 19618 122,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1 ,245 19628, ( 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 1 4 4 8 1 1 1 1 , , 9 9 6 9 3 7 7 7 5 5 1 1 8 8 , , 3 3 5 5 9 9 7 7 , , 9 9 1 (1 1 4 4 4 4 8 8 2 2 , ,1 1 6 9 1 5 1 1 , , 2 2 8 5 4 0 9 9 1 1 1 1 126,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1 ,960 808 1,152 1963 8 126,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 J28,951 800 800 15,428 13,224 1 ,125 1 ,079 11,001 10,625 376 1,722 818 904 19648, (29,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965.. 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1 ,431 679 752 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 1 3 3 , , 6 6 5 0 5 0 1 1 2 2, , 5 4 3 8 9 4 8 8 6 6 0 0 2 25 5 6 6 1 14 4 , , 2 3 0 8 8 7 1 1 3 3 , , 8 6 5 8 9 0 5 52 2 8 8 9 90 0 5 6 5 5 8 8 1 0 3 32 2 5 5 19678. ( 1 3 3 3 3 , , 1 27 1 1 9 1 1 , , 0 0 3 3 3 3 2 2 3 3 3 3 8 8 0 0 0 0 1 1 5 5 , , 6 6 5 4 3 6 1 1 4 4 . , 0 0 2 3 7 4 9 90 0 8 8 7 7 1 1 1 1 1 1 5 5, , 7 8 6 9 3 4 1 1 5 5 , , 3 2 3 05 6 5 5 5 5 8 8 6 69 7 1 7 4 4 8 7 7 3 2 2 0 0 4 4 1968-Juner. 32,514 1,030 230 800 12,101 10,733 557 811 18,713 18,100 613 670 504 166 Julyr.. 33,061 1 ,030 230 800 12,608 11,239 557 812 18,664 18,037 627 759 599 160 Aug.r. 33,517 1 ,030 230 800 12,437 11,155 520 762 19,295 18,659 636 755 595 160 Sept.r. 33,493 1 ,030 230 800 12,063 10,770 531 762 19,711 19,085 626 689 613 76 Oct.r.. 33,936 1 ,030 230 800 12,137 10,844 531 762 20,005 19,385 620 764 696 68 Nov.r. 35,496 1 ,030 230 800 13,689 12,398 529 762 20,017 19,393 624 760 692 68 133,831 1,030 230 800 12,550 11,320 529 701 19,519 18,910 609 732 690 42 Dec.5"' (33,617 1 ,030 230 800 12,483 11,320 462 701 19,375 18,910 465 729 690 39 1969-Jan.r. 33,605 1 ,031 231 800 10,729 9,566 462 701 21 ,167 20,673 494 678 638 40 FebZ. 34,273 I ,031 231 800 10,780 9,645 459 676 21,817 21 ,315 502 645 607 38 Mar.r 34,923 1 ,031 231 800 10,775 9,640 459 676 22,476 21,981 495 641 603 38 Apr.r. 36,026 1 ,033 233 800 10,940 9,766 459 715 23,373 22,876 497 680 641 39 May.. 37,607 1,033 233 800 12,430 11,306 459 665 23,412 22,939 473 732 684 48 June*. 38,869 1 ,028 228 800 10,222 9,097 459 666 26,896 26,440 456 723 676 47 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 16), Data in­ for the purpose of making gold subscriptions to the IMF under quota in­ cluded on the second fine 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 * 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. 5 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 differences. 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 7 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 8 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

SEPTEMBER 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a g ri l e n s E W u e ro st p e e r n 1 Canada A re m p L 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 12,101 7,045 671 1,197 2,740 259 189 July........................................................................... 12^608 7,054 709 1,528 2,848 284 1 85 Aug........................................................................... 12,437 6,849 780 1,432 2,929 242 205 Sept.......................................................................... 12,063 6,962 438 1,196 2,963 293 211 Oct.r...................................................................... 12'137 6,854 416 1 ,262 3,121 27t 213 Nov.r........................................................................ 13^689 8,097 574 1 1357 3,161 271 229 Dec.3 r....................................................................... 1 ( 1 1 2 2 , , 4 5 8 5 3 0 7 7 , , 0 0 0 0 1 9 5 5 3 33 2 1 1 , , 3 3 5 54 4 3 3 , , 1 1 2 6 3 9 2 24 5 8 9 2 2 2 2 5 6 1969—Jan.r.......................................................................... 10,729 5,437 564 1 ,350 2,931 250 197 Feb.r......................................................................... 10,780 5,252 512 1 ,413 3,071 262 270 Mar............................................................................ 10,775 5,191 466 1 ,373 3,208 246 291 Apr............................................................................ 10,940 5,523 446 1 ,445 2,954 264 308 May........................................................................... 12,430 7^288 403 i ;28i 2,907 235 316 Junep......................................................................... 10,222 5.284 461 1,244 2,729 232 272 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short-term liabilities to the official institutions * Includes countries in Oceania and Eastern Europe, and Western Euro­ of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible nonmarketable U.S. Govt, 3 See note 9 to Table 6. securities with an original maturity of more than 1 year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations5 Payable in dollars Deposits IMF End of period Total * Total Dema D n e d pos T it i s me 2 b T i c r l c l e U e s a a r . t t S s e i a f s u . i n ­ r d y s O l t i h e a t o r h b m r e . t 5 r ­ P r f e o a c n r y i u e n c a r i i g b ­ e n l s e ; i m nv g e e n o s t ld t ­ 4 Total Demand Time2 b T c i r l c l e e U s a a r . t t e S s i a f s u . i n ­ r d y s l O t i e h a t r o b h m r e . t 3 ­ r 1966........................... 27,599 27,010 9,884 5,869 7,547 3,710 589 800 580 56 139 212 173 1967 6 \ ( 3 3 0 0 , , 5 6 0 5 5 7 3 3 0 0 , , 4 2 2 7 8 6 1 1 1 1 , , 5 7 7 4 7 7 5 5, , 7 7 7 8 5 0 9 9 , , 1 1 7 7 3 3 3 3 , , 7 7 5 2 0 7 2 22 2 9 9 8 8 0 0 0 0 4 4 8 7 7 3 6 6 7 7 1 1 2 2 0 4 1 1 7 78 8 1 1 0 1 7 8 1968--Julyr................. 30,675 30,163 14,000 5,466 6,110 4,587 512 800 599 75 131 254 138 Aug.r............... 31,209 30,702 14,441 5,523 6,252 4,486 507 800 595 53 138 265 139 Sept.r............... 31,268 30,709 14,483 5,546 6,188 4,492 559 800 613 78 131 290 114 Oct.r................ 31 ,725 31 ,174 14,887 5,494 6,405 4,388 551 800 696 56 123 404 113 Nov.r............... 33,283 32,712 14,979 5,438 7,843 4,452 571 800 692 44 110 428 110 Dec.r............... 31,720 31,084 14,381 5,494 6,797 4,412 636 800 690 68 120 394 108 1969--Jan.r................. 31,677 31,172 15,658 5,499 5,422 4,593 505 800 638 59 100 361 118 Feb.'................ 32,367 31 ,810 16,020 5,577 5,486 4,727 557 800 607 62 96 307 143 Mar.r............... 33,024 32,450 16,225 5,607 5,376 5,242 574 800 603 69 98 211 225 Apr.r................ 34,083 33,498 16,719 5,622 5,706 5,451 585 800 641 63 85 225 267 May............... 35,729 35,163 16,601 5,623 7,272 5,667 566 800 684 58 82 236 308 June”............... 37,013 36,416 20,008 5,700 4,975 5,733 597 800 676 76 87 214 298 Julyp................. 37,969 37,524 20,976 5,623 5,050 5,875 445 800 683 59 77 227 319 For notes sec the following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions7 Payable in dollars Payable in dollars Payable End of period Total Deposits Tre U a .S su . ry Other for i e n i gn Total Deposits Tre U a .S su . ry Other P fo a r y i e n a ig b n le Demand Time2 b c il c l e s a r t t e a if s n i­ d s l t i h e a o r b m r . t J ­ rencies Demand Time2 b c il c l e s a r t t e a if s n i­ d s l t i h e a o r b m r . t 3 ­ currencies 1966...................... 26,219 9,829 5,730 6,535 3,537 589 12,539 1 ,679 2,668 6,316 1,359 517 19676..................... ( ( 2 2 9 9 , , 2 3 3 7 2 0 1 1 1 1 , , 6 5 8 1 0 0 5 5 , , 6 6 5 5 5 6 8 8, , 1 1 9 9 5 5 3 3, , 6 6 4 1 3 0 2 2 2 2 9 9 1 1 4 4, , 0 0 2 3 7 4 2 2 , , 0 0 5 5 4 4 2 2 , ; 4 4 5 6 8 2 7 7 , , 9 9 8 8 5 5 1 1 , , 3 3 8 7 1 8 1 1 5 5 2 2 1 968---JU]y r.......... 29,276 13,925 5,335 5,056 4,448 512 11,239 2,306 2,058 4,927 I ,544 404 Aug,r......... 29,814 14,388 5’384 5,187 4,348 507 11,155 2,152 2,102 5,021 1 '476 404 Sept.r......... 29,855 14,405 5 ;415 5,099 4,377 559 10,770 1 ’997 1 '966 4,965 1 ,438 404 Oct.r.......... 30,229 14,831 5,370 5,201 4,275 551 10,844 2,001 1 ^988 5,089 1 '362 404 Nov.r......... 31,791 14,935 5,329 6,615 4,342 571 12,398 2,253 1 ,910 6,494 1 ,337 404 Dec.r......... 30,230 14,313 5,374 5,602 4,304 636 11,320 2,149 1 ,900 5,486 1 J22 463 1969—Jan.r.......... 30,239 15,599 5,399 4,261 4,475 505 9,566 1 ,941 1 ,941 4,125 1 ,221 338 Feb.'.......... 30,960 15,958 5,481 4,379 4,584 557 9,645 1 ,844 1 ,929 4,265 1 ,219 388 Mar.r...., , 31,621 16,156 5,509 4,364 5,018 574 9,640 2'012 1 '879 4,218 I ’143 388 Apr.r......... 32,642 16,656 5,536 4,681 5,184 585 9,766 1 ’869 1 ,898 4,531 I ^080 388 May........... 34,245 16,543 5,541 6,236 5,359 566 11,306 1 ’792 1 '988 6,092 1 ’046 388 Junep.......... 35,537 19'932 5,613 3,960 5,435 597 9,097 2^038 1 '976 3,821 '874 388 July”.......... 36,486 20,917 5,545 4,022 5,556 445 8,761 1 ,892 l',874 3,872 891 232 To banks 8 To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Dema D n e d posi T ts ime2 T b c r i c l e e U l a s a r . t t S s e a i u f s . n i­ r d y s O l t i h e a t o r h b m r . e t 3 r ­ Total Dema D n e d posi T ts ime2 T b c r il c e e U ls a a r . t t s S e a if u s . n i­ r d y O s l t i h e a t o h r b m r e . t 3 r ­ f r o e c r n u e c r i i g - e n s 1966...................... 13,680 9,864 6,636 1 ,243 137 1 ,848 3,744 I 513 1,819 83 329 72 19676.................... f 15,336 11,132 7,933 1 ,142 129 1 ,927 4,127 1,693 2,052 81 302 77 |15,205 11,008 7,763 1,142 129 1,973 4,120 1 ,693 2,054 81 292 77 1968—Julyr.......... 18,037 13,817 10,006 1 ,210 50 2,551 4,111 1,612 2,067 79 352 109 Aug.r......... 18,659 14,430 10,654 1 '214 85 2,477 4,126 1 581 2,069 81 395 103 Sept.r......... 19,085 14,727 10,767 1 '333 56 2,570 4,203 1 ,641 2,116 78 368 155 Oct.r.......... 19,385 15,040 11,234 1 ,241 35 2,529 4,197 1 ,596 2,141 77 383 148 Nov.r......... 19,393 14,882 11,008 1 ,240 38 2,597 4,344 1 674 2,179 83 408 167 Dec.r......... 18,910 14,294 10,368 1 ,275 30 2,621 4,443 1 ,796 2^99 86 362 173 1969—Jan.r. ..... 20,673 16,086 11,914 1,254 29 2,889 4,420 1,743 2,203 107 366 167 Feb.r.......... 21 ,315 16,754 12,345 1 ,367 41 3,001 4,391 1,770 2,185 73 362 170 Mar.r.... . . 21,981 17,404 12,393 1 ’470 42 3,499 4,390 1 ’751 2,160 104 374 187 Apr.r......... 22,876 18,300 13,024 1 '517 40 3,719 4,379 1 ,762 2,121 110 386 197 22,939 18,447 13,047 1 ’481 35 3,884 4,313 1 ’703 2,072 110 430 179 Junep......... 26,440 21 ,949 16 105 1,646 35 4,163 4,282 1 789 I 991 104 398 209 July».......... 27,725 23,376 17,346 1 ,741 34 4,255 4,136 1 ,679 1,930 116 410 213 1 Data exclude “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 Excludes negotiable time certificates of deposit, which are included 7 Foreign central banks and foreign central govts, and their agencies, in “Other.” and Bank for International Settlements and European Fund. 3 Principally bankers’ acceptances, commercial paper, and negotiable 8 Excludes central banks, which are included in “Official institutions.” time CD’s. 4 U.S. Treasury bills and certificates obtained from proceeds of sales of Note.-—“Short-term” refers to obligations payable on demand or having gold by the IMF to the United States to acquire income-earning assets. an original maturity of 1 year or less. For data on long-term liabilities Upon termination of investment, the same quantity of gold can be re­ reported by banks, see Table 10. Data exclude the “holdings of dollars” acquired by the IMF. of the International Monetary Fund; these obligations to the IMF consti­ s Principally the International Bank for Reconstruction and Develop­ tute contingent liabilities, since they represent essentially the amount of ment and the Inter-American Development Bank, dollars available for drawings from the IMF by other member countries. Includes difference between cost value and face value of securities in Data exclude also U.S. Treasury letters of credit and non-negotiable, non­ IMF gold investment account. interest-bearing special U.S. notes held by the Inter-American Develop­ 6 Data on the two lines shown for this date differ because of changes in ment Bank and the International Development Association. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period; in millions of dollars) 1966 19671 1968 1969 Area and country Dec. Dec. Dec. Dec.r Jan.r Feb.r Mar.r Apr.r May JuneP Julyp Europe: Austria................................................... 196 231 231 162 136 144 155 159 116 132 192 Belgium Luxembourg2.................... 420 601 632 313 337 331 310 350 337 408 363 Denmark........................................... 305 243 243 146 141 101 124 159 245 148 136 Finland.................................................... 58 99 99 176 164 169 151 146 116 95 90 France.................................................... 1 ,070 1 ,326 1 ,330 1 ,383 1 ,468 1 ,468 1,476 1 ,260 1,139 1 ,425 1,330 Germany................................................ 2,538 2,218 2,217 2,640 1 ,333 1 ,368 1 ,064 1 ,597 3,653 2’,116 2,057 Greece................................................... 129 170 '170 ’183 195 ’178 170 ’ 190 176 165 199 Italy........................................................ 1 ,410 1 ,948 1 ,948 729 629 601 633 669 628 695 754 Netherlands............................................. ’364 '589 589 276 217 272 268 302 360 275 329 Norway.................................................... 283 449 449 448 317 322 336 334 289 257 235 Portugal................................................. 358 437 432 345 330 319 325 318 300 316 320 Spain....................................................... 162 150 150 ‘158 136 148 146 163 146 158 167 Sweden............................................ 656 492 492 453 453 391 419 391 319 281 210 Switzerland............................................. 1 ,085 1 ,732 1 732 2,155 2,050 1 816 2,154 1 960 1 783 I 847 1 ,543 Turkey................................................... ’ 43 ' 33 ’ 33 ’ 29 ’ 33 33 30 28 36 ’ 28 23 United Kingdom.................................... 3,817 4,851 4,667 6,133 7,961 8,455 8,853 9,629 9,662 12,353 13,322 Yugoslavia.............................................. 37 23 23 33 25 ' 20 21 ' 24 ’ 22 21 27 Other Western Europe3.......................... 234 736 706 357 411 385 383 386 387 412 376 U.S.S.R...................'............................... 8 8 8 5 12 6 6 8 4 7 8 Other Eastern Europe............................ 40 44 44 48 34 35 35 41 38 39 33 Total................................................ 13,933 16,378 16,194 16,170 16,385 16,561 17,059 18,113 19,755 21,177 21 ,715 Canada....................................................... 2,502 2,706 2,709 2,796 2,925 3,105 3,061 3,092 3,247 3,073 3,477 Latin America: Argentina............................................. 418 480 479 479 491 482 494 521 480 425 498 Brazil...................................................... 299 237 237 257 247 256 265 291 314 292 304 Chile........................................................ 261 252 252 323 301 330 336 345 344 348 352 Colombia................................................ 178 169 166 249 222 241 229 223 229 229 223 Cuba........................................................ 8 9 9 8 8 7 8 8 8 8 8 Mexico................................................... 632 723 720 974 938 938 913 884 789 797 758 Panama................................................. . 150 170 173 154 156 151 149 158 152 150 139 Peru......................................................... 249 274 274 276 277 279 274 273 262 252 248 Uruguay................................................ 161 147 147 149 149 155 150 146 145 151 144 707 793 793 792 799 808 750 752 707 704 658 Other Latin American republics............ 522 523 523 . 611 582 585 602 617 588 574 549 Bahamas and Bermuda.......................... 177 233 233 266 299 380 464 466 478 757 873 Netherlands Antilles and Surinam......... 104 111 109 88 105 104 95 97 99 97 93 Other Latin America............................. 17 18 18 30 31 30 34 31 32 30 32 Total................................................ 3,883 4,140 4,134 4,657 4,605 4,745 4,763 4,813 4,627 4,813 4,879 Asia: China Mainland..................................... 36 36 36 38 37 37 38 38 38 38 37 Hong Kong.......................................... 142 215 217 270 269 256 262 253 257 237 220 India........................................................ 179 354 354 281 215 236 253 274 297 227 239 Indonesia.............................................. 54 34 34 50 62 66 69 80 70 67 66 Israel....................................................... 115 125 125 219 190 154 154 144 158 156 151 Japan...................................................... 2,671 2,563 2,612 3,319 3,248 3,382 3,546 3,417 3,441 3,435 3,378 Korea...................................................... 162 176 ’176 171 155 150 132 129 138 ’143 151 Philippines............................................ 285 289 289 271 237 217 265 243 214 212 221 Taiwan.................................................. 228 226 222 155 149 154 159 160 174 189 185 Thailand................................................. 598 616 616 556 559 577 563 554 544 535 526 Other..................................................... 779 858 859 628 576 564 557 547 509 503 493 Total.............................................. 5,250 5,492 5,541 5,957 5,697 5,794 5,998 5,840 5,839 5,741 5,667 Africa: Congo (Kinshasa)................................. 15 33 33 12 12 13 9 19 14 12 16 Morocco............................................... 31 18 18 13 15 14 15 17 17 18 17 South Africa.......................................... 71 61 61 58 50 58 53 76 61 58 56 U.A.R. (Egypt)....................................... 39 16 16 18 19 18 19 19 24 25 22 Other. . . .T............................................. 229 221 221 260 265 297 267 257 255 251 261 Total............................................... 385 349 349 361 360 400 364 389 371 364 372 Other countries: Australia................................................. 243 278 278 261 238 326 343 365 380 338 340 All other................................................. 22 27 27 28 28 29 34 30 27 30 35 Total............................................... 266 305 305 289 267 355 377 395 407 368 375 Total foreign countries.............................. 26,219 29,370 29,232 30,230 30,239 30,960 31,621 32,642 34,245 35,537 36,486 International and regional: International4......................................... 1 ,270 1 ,181 1 ,175 1 ,380 1,320 1 ,295 1 ,269 1,322 1 ,361 1 ,332 1,328 Latin American regional........................ ’ 73 ' 78 ' 70 ' 78 ’ 83 ’ 80 96 ' 87 ' 90 107 '118 Other regional5...................................... 38 28 28 32 35 32 38 32 33 37 37 Total................................. 1,380 1 ,287 1 ,273 1,490 1,438 1,407 1,403 1,441 1,484 1 ,476 1,483 Grand total............................. 27,599 30,657 30,505 31,720 31,677 32,367 33,024 34,083 35,729 37,013 37,969 For notes see following page. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) Supplementary data 6 (end of period) 1967 1968 1969 1967 1968 1969 Area or country Area or country Dec. Apr. Dec. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus......................................... 1 7 20.9 8.0 2.3 Jordan......................................... 39. 8 6.6 3 0 4 0 Iceland......................................... 4 3 3.3 5.6 4.4 Kuwait...................................... 36.6 34 0 66 7 40 5 Ireland Rep. of............................ 9 4 14.7 23.8 20.5 Laos...................................... 3.6 4 0 3 1 4 0 I uxembourg................................ 31.3 (7) (?) (7) Lebanon..................................... 113.3 97 2 78 3 81 9 Malaysia..................................... 63.9 52 1 51.8 40 9 Other Latin American republics: Pakistan...................................... 54.8 54 1 59 7 23 6 Bolivia.......................................... 59.9 61.0 66.0 Ryukyu Islands (inch,Okinawa), 14.5 26 4 17 0 20 0 Costa Rica.,................................ 42.6 55.0 51,1 60.7 Saudi Arabia.............................. 61.2 70.3 29 0 47 9 Dominican Republic. .................. 55.1 60.2 68.9 58.9 Singapore.................................... 159 5 156 9 66 6 40 1 Ecuador....................................... 85.6 64.1 66.4 61 .9 Syria........................................... 6.3 6 5 2 1 4 0 El Salvador.................................. 72.8 83.6 82.1 88.7 Vietnam...................................... 148.2 123.0 50.5 40.4 Guatemala................................... 73.0 96.4 85.8 89.9 Haiti............................................. 15.8 17.4 16.9 18.0 Other Africa: Honduras............................... 29.7 31.4 33.2 36.5 Algeria....................................... 6.9 7.9 8.1 6 ? Jamaica......................................... 22.4 44.4 41.7 28.5 Ethiopia, (inch Eritrea).............. 23. 8 22.5 13.2 15 0 Nicaragua............................................ 45.6 57.9 67.0 78.5 Ghana......................................... 4.3 13 0 3 3 7 6 Paraguay.............................................. 1 2.7 13.6 15.7 17.7 Kenya. . ...................................... 16.4 19 8 286 34 1 Trinidad & Tobago..................... 6.1 9.2 10.4 7.7 Liberia........................................ 24.9 26 4 25.2 27 8 Other Latin America: L N i i b g y e a ri .. a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . . . . . . . . . . . . . ... 3 1 7 7 . . 9 9 4 2 5 4 0 0 6 1 8 9 .6 9 9^5 British West Indies...................... 13.8 20.6 25.2 25.3 Southern Rhodesia................... 2.4 4 2 1 4 7 0 Sudan......................................... 2.3 2 1 5 3 2 9 Other Asia: Tanzania..................................... 20.3 26 9 21.2 23 5 Afghanistan.................................. 5.5 5.6 6.2 7.6 Tunisia........... 10. 3 7 0 7 1 ?.'3 Burma ........................................ 10.8 16.6 4.7 5.2 Uganda.. . . 1 4 too 5 8 Cambodia.................................... 1 .9 2.7 2.4 2.0 Zambia........................................ 24.8 21 3 25 3 Ceylon.......................................... 5.0 4.5 4.2 5.1 Iran.............................................. 49.6 38.4 41.3 43.9 All other: Iraq............................................... 34.6 10.0 86.1 New Zealand........................ 17.5 15 4 16.8 19.6 1 Data in the two columns for this date differ because of changes in • * Data exclude “holdings of dollars” of the International Monetary reporting coverage. Figures in the first column are comparable in coverage Fund but include IMF gold investment. with those shown for the preceding date; figures in the second column are 5 Asian, African, and European regional organizations, except BIS and comparable with, those shown for the following date. European Fund, which are included in “Europe.” 2 Through the first column for Dec. 1967 Luxembourg was included in 6 Represent a partial breakdown of the amounts shown in the “other” “Other Western Europe”. categories (except “Other Eastern Europe”). J Includes Bank for International Settlements and European Fund; t Included with Belgium. beginning with the second column for Dec. 1967, excludes Luxembourg. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To End of period Total reg i a n i n o t d i n , al Total O in ti f s o fi t n c it i s u a ­ l Banks1 fo O r e e t r h i s g e n r ­ Ar ti g n e a n­ A O m La t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h t l e r l i r e s 1966............................. 1 494 506 988 913 25 50 234 8 197 140 277 133 19672........................... ( ( 2 2 , , 5 5 4 6 6 0 6 6 8 9 9 8 1 1 , , 8 8 6 5 3 8 1 1 , , 8 8 0 0 7 7 1 1 5 5 3 4 5 0 2 25 5 1 1 2 2 3 3 4 4 1 1 2 2 6 6 4 44 4 3 3 2 2 1 1 8 8 5 5 0 0 2 2 8 8 4 9 1968—July................... 2,627 639 1,989 1,933 18 38 88 264 190 591 202 569 85 Aug........... 2’759 644 2 115 2’059 18 38 188 263 205 593 205 576 85 Sept.................. 2 910 649 2 261 2,204 15 42 247 267 244 616 197 610 80 Oct.r......... 2 986 688 2 299 2^239 12 47 247 266 242 644 201 620 78 Nov.T............... 3,038 749 2,289 2’239 10 40 247 248 217 656 201 623 97 Dec.r............... 3,157 768 2’389 2’341 8 40 284 257 241 658 201 651 97 1969—Jan.r................. 3,165 776 2,389 2,346 6 38 273 251 240 658 201 647 120 Feb.r................ 3,137 778 2^359 2'315 8 36 284 247 228 658 200 613 129 Mar.r............... 3’107 768 2’338 2'298 5 36 284 242 221 658 200 607 126 Apr................... 3’044 769 2’276 2'233 5 37 284 205 208 658 201 593 127 May.................. 2960 761 2,199 2’158 5 36 284 193 189 658 201 563 111 Junep............... 2,920 757 2,163 2'111 18 34 284 153 189 658 198 560 120 Julyp................. 2,839 799 2,040 1 ,974 32 34 207 133 181 661 203 529 126 1 Excludes central banks, which are included with “Official institutions.” those shown for the preceding date; figures on the second line are com­ 2 Data on the two lines for this date differ because of changes in report­ parable with those shown for the following date. ing coverage. Figures on the first line are comparable in coverage with Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTL CAPITAL TRANSACTIONS OF THE U.S. A 81 11. ESTIMATED FOREIGN HOLDINGS OF MARKETABLE U.S. GOVERNMENT BONDS AND NOTES (End of period; in millions of dollars) 1968 1969 Area and country July Aug. Sept. Oct. Nov. Dec. Dec. Jan. Feb. Mar. Apr. May Junep Julyp Europe: Denmark....................... 11 11 11 1 1 1 1 1 1 10 10 9 9 9 9 9 9 Finland.......................... 2 2 2 2 2 2 1 1 1 1 1 1 1 France........................... 7 7 7 7 7 7 5 5 5 5 6 6 6 6 Netherlands...................... 4 4 4 4 4 4 2 2 2 2 2 2 2 2 Norway.............................. 57 38 38 38 38 38 37 37 37 37 37 37 37 37 Spain.................................. Sweden.............................. 26 6 6 6 6 6 5 5 5 5 5 5 5 5 Switzerland.................. 91 90 90 90 87 87 39 45 45 45 45 44 44 44 United Kingdom............... 445 455 449 444 446 432 350 371 377 370 371 351 334 357 Other Western Europe. . . . 47 46 46 46 46 46 30 30 30 30 30 30 30 21 Eastern Europe................. 7 6 6 6 6 6 6 6 6 6 6 7 7 7 Total 697 666 660 655 654 641 488 515 520 512 514 494 477 491 Canada 376 374 371 370 375 373 384 386 387 388 388 388 387 389 Latin America: Latin American republics.. 5 5 5 5 5 5 2 2 2 2 2 2 2 2 Neth. Antilles & Surinam. 20 22 22 22 22 22 15 15 15 15 15 12 12 12 Other Latin America........ 2 2 2 1 1 1 * • « * « • * • Total 27 29 28 28 28 28 17 17 18 17 17 14 13 13 Asia: Japan....... 10 10 10 10 10 10 9 9 9 9 10 10 10 10 Taiwan. . . 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Other Asia 52 50 61 61 61 61 16 15 15 15 16 16 16 16 Total 63 62 73 73 73 73 26 27 27 27 28 28 28 28 Other countries 20 25 25 25 23 23 11 11 9 9 9 9 9 9 Total foreign countries. 1,184 1 ,156 1,157 1,151 1,153 1 ,138 927 956 961 954 956 932 915 930 International and regional: International............... 122 122 37 29 29 29 25 25 24 24 24 32 32 32 Latin American regional. 38 38 38 38 39 13 13 14 14 14 15 15 15 17 Asian regional............. 1 1 1 1 I 1 1 Total 160 160 76 68 68 43 39 40 38 38 39 48 48 49 Grand total 1,344 1 ,316 1,233 1,219 1,221 1 ,180 966 996 999 992 995 980 962 979 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 I 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 16). 12. 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 Total g B iu e m l­ C ad a a n ­ 1 m De a n rk ­ Italy2 Korea S d w e e n ­ T w a an i­ T la h n a d i­ Total A tr u ia s­ g B iu e m l­ m G a e n r y ­ 3 Italy z S er w la i n t­ d 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—Aug,.............. 2,595 I ,122 12 914 10 146 15 25 1,473 50 60 926 125 311 Sept................ 2,865 1 J92 12 1,164 20 146 15 25 10 1 J 473 50 60 926 125 311 Oct................. 2,996 1 ,397 12 LI 64 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 i ’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 Apr................. 3,568 1 ,666 32 1 '334 140 15 25 20 100 1,902 50 1 250 226 376 May............... 3,518 1 666 32 1,334 140 15 25 20 100 1 ’852 50 I ’200 226 376 June............... 3’269 1 ,416 32 1 '084 140 15 25 20 100 1,853 50 1 200 226 377 July................ 3,352 1 ,391 32 1 '084 140 15 20 100 1,961 25 I 200 226 511 Aug................ 3,251 1 ,390 32 1,084 ......1..4.0 15 ........2.0 100 1 ,861 25 ...1 ..^.2..0..0 125 511 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

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period; in millions of dollars) 1966 19671 1968 1969 Area and country Dec. Dec. Dec. Dec. Jan.r Feb.’’ Mar. Apr.r May JuneP July» Europe: Austria..................................................... 16 17 16 6 3 5 3 3 12 3 4 Belgium-Luxembourg2........................... 67 66 83 40 45 52 46 53 55 62 49 Denmark................................................. 62 37 37 36 34 42 31 29 31 35 34 Finland.................................................... 91 78 78 63 63 61 57 59 59 60 61 France..................................................... 74 88 88 66 59 53 58 66 89 95 87 Germany................................................. 227 176 179 171 142 149 136 157 178 165 158 Greece..................................................... 16 19 19 12 11 12 12 12 15 14 15 Italy......................................................... 1 10 58 58 105 75 93 98 110 109 107 94 Netherlands............................................. 40 35 35 40 37 34 41 38 38 48 39 Norway.................................................... 76 61 61 43 38 35 32 39 42 46 49 Portugal................................................... 41 26 26 10 9 8 8 9 9 12 9 Spain........................................................ 67 54 54 46 40 40 44 47 40 51 56 Sweden..................................................... 75 75 75 58 59 54 56 53 54 77 70 Switzerland............................................. 88 98 98 93 95 124 108 124 107 93 101 Turkey..................................................... 52 38 38 38 26 26 35 31 28 29 34 United Kingdom..................................... 193 244 244 318 306 305 338 339 338 356 358 Yugoslavia............................................... 19 13 13 22 33 34 36 38 37 33 26 Other Western Europe3.......................... 40 30 13 15 11 11 11 11 12 12 12 U.S.S.R.................................................... 2 3 3 3 1 1 3 2 4 4 2 Other Eastern Europe............................ 16 18 18 21 18 18 18 21 25 21 27 Total................................................ 1 ,374 1 ,234 1 ,238 1 ,205 1 ,105 1,157 1,170 1 ,241 1 ,283 1 ,321 1 ,285 Canada.................................................... 61 1 597 597 523 503 588 663 697 741 700 684 Latin America: Argentina............................................. 187 221 221 249 245 247 254 274 266 275 284 Brazil....................................................... 112 173 173 338 338 336 337 331 328 336 292 Chile........................................................ 158 177 177 193 176 168 165 164 161 168 179 Colombia................................................. 305 217 217 206 190 188 197 208 197 200 218 Cuba........................................................ 16 16 16 14 14 14 14 14 14 14 14 Mexico..................................................... 757 960 960 943 914 931 966 948 953 927 933 Panama................................................... 85 47 47 56 52 57 58 56 55 53 57 Peru......................................................... 212 249 249 207 200 179 181 191 188 182 177 Uruguay.................................................. 45 42 42 44 40 43 42 41 43 44 42 Venezuela................................................ 220 226 226 232 213 204 203 211 212 226 238 Other Latin American republics............ 261 289 289 280 268 270 273 274 285 283 271 Bahamas and Bermuda.......................... 61 63 63 80 147 88 64 68 67 64 60 Netherlands Antilles and Surinam......... 18 10 10 19 21 14 16 11 14 13 12 Other Latin America.............................. 16 18 18 22 17 16 17 18 19 24 21 Total................................................ 2,453 2,707 2,707 2,884 2,837 2,756 2,787 2,810 2,801 2,807 2,798 Asia: China Mainland..................................... 1 1 1 1 1 1 1 1 1 1 1 Hong Kong............................................. 31 28 30 32 27 26 33 42 38 40 36 India........................................................ 16 10 10 19 13 13 11 12 10 12 9 Indonesia................................................. 6 5 5 23 19 24 25 59 61 54 38 Israel........................................................ 98 57 57 84 80 80 94 93 122 118 101 Japan....................................................... 2,572 3,147 3,154 3,113 2,998 2,972 3,053 2,916 3,035 3,223 3,137 Korea...................................................... 31 59 59 77 71 78 75 102 114 120 136 Philippines............................................... 220 295 303 239 233 241 269 253 256 272 273 Taiwan............................................. 15 37 37 38 36 39 44 47 46 44 37 Thailand.................................................. 81 100 100 99 93 87 84 84 86 88 87 Other....................................................... 135 137 138 145 138 142 137 152 158 178 166 Total................................................. 3,206 3,875 3,894 3,872 3,709 3,703 3,825 3,760 3,928 4,150 4,021 Africa: Congo (Kinshasa)................................... 1 1 1 3 3 2 2 4 7 4 3 Morocco.......................................... 2 2 2 2 2 3 4 3 4 3 3 South Africa........................................... 50 37 37 46 40 38 38 42 46 47 47 U.A.R. (Egypt).................................. 25 11 1 1 8 10 8 8 10 11 11 13 Other....................................................... 69 52 52 73 72 70 56 60 62 67 65 Total................................................. 147 102 102 133 127 120 109 119 130 132 131 Other countries: Australia.............................................. 52 54 54 66 59 53 56 64 66 65 58 All other.................................................. 10 13 13 13 11 10 10 11 11 13 13 Total................................................. 62 67 67 79 70 63 65 75 77 78 71 Total foreign countries............................... 7,853 8,583 8,606 8,695 8,350 8,387 8,620 8,701 8,961 9,187 8,990 International and regional.......................... 1 * ♦ « 1 1 2 1 1 1 1 Grand total.................................. 7,853 8,583 8,606 8,695 8,351 8,387 8,622 8,701 8,961 9,188 8,990 1 Data in the two columns for this date differ because of changes in Note.—Short-term claims are principally the following items payable reporting coverage. Figures in the first column are comparable in coverage on demand or with a contractual maturity of not more than 1 year: loans with those shown for the preceding date; figures in the second column 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 column 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 column for Dec. 1967, excludes Luxem­ their customers in the United States. Excludes foreign currencies held bourg. by U.S. monetary authorities. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Loans to— C t o io ll n e s c ­ A a m c n c a c e d e p e s t­ Deposits g c F o u o v r r i t e t , i e ig s s e n , ­ Total Total O in ti f s o fi t n c it s i u a ­ l Banks 1 Others st o i a n u n g t d ­ ­ f e o o i r g f n a fo e c r r c s ­ t, Other Total w e i i t g h n e f r o s r­ a c n n o a d n m c f l e . i­ Other paper 1966............................. 7,853 7,433 3,141 256 1,739 1 ,145 1 ,288 2,540 464 420 241 70 110 1967 2......................... (8,583 8,158 3,137 306 1 ,603 1,228 1,511 3,013 498 425 287 74 63 18,606 8,182 3,150 306 1 ,616 1,228 1,552 3,013 467 425 287 70 67 1968—July................... 8,179 7,841 3,002 287 1 ,566 1 ,148 1 ,586 2,787 467 338 230 44 65 Aug.................. 8,230 7*903 3,022 300 1 ^570 1 '152 1 ,606 2,824 452 326 225 38 62 Sept.................. 8'323 7’977 3', 197 302 1,731 1 '163 1 ,621 2,745 415 346 250 29 67 Oct.................... 8,428 8,031 3’150 267 1 705 I ,178 1,657 2^773 451 397 306 28 63 Nov................... 8,547 8 J 49 3,219 220 1 ’811 1 ,189 1,697 2,747 486 398 279 52 67 Dec................... 8'695 8,259 3'163 247 1 ;697 1 ,219 1 ,733 2,854 509 436 336 29 72 1969—Jan. r................. 8,351 7,984 3,038 217 1,667 1 ,154 1 .623 2,794 528 367 252 42 73 Feb.f................ 8’387 8'014 3 J 38 222 1 ’757 1'159 1 ,567 2’746 563 373 257 40 76 Mar.................. 8; 622 8,195 3; 204 275 1 J81 1 ,149 1 ,634 2,777 580 427 267 70 90 Apr.r................ 8,701 8'218 3,159 289 I ,763 1,108 1 ,723 2,773 563 483 318 67 98 May........... 8,961 8,466 3,'206 295 1 '855 1 ,056 1 ,733 2,899 628 495 290 100 104 Junep............... 9,188 8'670 3'323 291 1 '973 I '059 1 ,748 3,067 532 518 334 77 107 July*................. 8,990 8‘,500 3,106 258 I ,819 1 ,029 1 ,763 3,059 573 491 309 71 111 1 Excludes central banks which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date. reporting coverage. Figures on the first line are comparable in coverage 15. LONG TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— Other P fo a r y e in a ig b n le U K n in ite g d ­ Other Canada Latin Japan. Other o A th l e l r long­ curren­ dom Europe America Asia countries Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1966................. 4,180 3,915 702 512 2,702 247 18 70 1,143 326 1 ,346 326 409 562 1967................. 3'925 3’638 669 323 2’645 272 15 56 720 427 1,556 180 449 537 1968—July. . . . 3,627 3,272 541 274 2,457 343 11 65 552 414 1,411 145 545 495 Aug...... 3,612 3,262 526 268 2,467 339 12 70 519 414 1 ,401 138 567 502 Sept...... 3,571 3,217 516 266 2,435 342 12 71 506 418 1 ,384 136 558 498 Oct....... 3,645 3,285 582 267 2,436 346 13 71 495 416 1 ,418 132 620 492 Nov...... 3,603 3,242 577 246 2,419 347 14 69 497 420 1 ,382 128 624 484 Dec....... 3,567 3,158 528 237 2,393 394 16 68 479 428 1 ,375 122 617 479 1969—Jan.r. . . 3,509 3,120 509 230 2,382 374 16 67 473 408 1,376 118 611 456 Feb..... 3,534 3,114 501 243 2,370 402 18 67 474 432 1 ,382 117 610 452 Mar...... 3^34 3^17 485 211 2,321 401 16 67 473 400 1 ,336 114 571 473 Apr...... 3,435 3,020 478 230 2,312 400 15 66 480 402 1 ,331 113 577 466 May.... 3,454 3,056 477 236 2,343 381 17 55 487 397 1 ,353 112 572 478 June». . . 3,406 2,981 485 220 2,276 404 22 54 484 398 1 ,334 101 588 447 July"... 3,259 2,826 445 209 2,172 407 27 54 447 390 1 ,298 98 570 404 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 16. PURCHASES AND SALES BY FOREIGNERS OF LONG TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Pur­ Net pur­ Pur­ Net pur­ Pur­ Net pur­ Inti, Foreign chases Sales chases or chases Sales chases or chases Sales chases or Total and sales sales sales regional Total Official Other 1967. -43 -121 78 45 33 10,275 9,205 1 ,070 2,024 3,187 -1,163 880 1 ,037 -157 1968 -489 -161 -328 -380 51 17,558 13,329 4,229 2,306 3,673 -1,367 1,245 1 ,562 -316 1969—Jan.-Julyp, 13 10 4 -12 16 9,221 7,731 1,490 1,003 1,720 -717 950 1,212 -261 1968—July. 8 -6 14 14 1 ,496 1,109 387 167 253 -86 81 83 -2 Aug. -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 I ,454 402 450 692 -242 216 154 62 Nov. 2 2 -2 3 1 ,610 1 ,270 340 172 361 -189 146 155 '-9 Dec. 41 -26 -15 ............. — 15 I ,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 -1 5 -3 7 1 ,416 1 ,065 351 121 227 -106 123 191 -68 Mar........ — 7 -7 -7 1 ,270 981 289 244 264 -19 126 125 1 Apr......... 3 1 2 2 1,121 1 ,019 102 104 180 -76 102 137 -34 May........ -15 9 -24 ♦ -24 1 ,566 1 ,338 228 156 151 6 169 254 -85 Junep.. .. -17 -17 -17 1,169 1,192 -23 91 205 -115 185 293 -108 Julyp , ,. . 17 1 16 -9 25 1 ,018 i ;oo2 16 119 349 -230 116 104 12 I Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 12. 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. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la it n z d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada Am La e t r i i n c a Asia Africa co O u t n h t e ri r e s r I e n g ti io . n & a l 1967.................... 757 68 68 22 250 -115 49 342 265 84 49 3 14 1968..................... 2,270 201 169 298 822 -28 130 1,592 386 151 124 2 3 12 1969—Jan-Julyp. 807 26 98 86 260 -179 160 451 151 110 74 * 1 21 1968—July.......... 222 20 8 -4 120 -10 18 153 46 5 20 I -2 Aug....... 80 15 6 7 48 -9 13 80 9 -17 6 * 1 Sept.......... 150 25 8 4 45 7 11 100 25 7 16 -1 2 Oct........... 211 9 24 7 119 -11 -4 144 21 30 15 2 Nov.......... 284 48 17 18 92 26 6 207 40 18 18 2 Dec.......... 237 20 31 8 79 -21 34 151 39 39 6 ♦ • 2 1969—Jan........... 362 9 27 8 152 1 16 213 94 30 22 -I 4 Feb........... 270 9 21 3 113 2 43 191 36 40 5 -1 Mar.......... 99 4 18 13 82 -39 33 111 -9 -12 9 Apr........... 74 6 12 35 -21 20 51 9 10 3 * * 1 May........ 156 3 5 22 63 -25 50 118 -1 30 1 8 Junep....... -104 -11 12 16 -120 -68 24 -148 15 10 15 • -I 4 JulyP........ -51 5 4 24 -64 -29 -26 -86 8 3 19 « ♦ 6 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la it n z d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada Am La e t r i i n ca Asia Africa co O u t n h t e ri r e s I r n e t g i, i on an a d l 1967.................... 313 114 38 9 177 -337 42 43 41 31 30 34 14 121 1968.................... 1 ,959 195 248 39 510 522 238 1,752 68 12 -1 * H 117 1969—Jan.-JulyP. 683 51 60 3 ill 205 43 474 9 10 -12 • 23 180 1968—July.......... 164 18 13 4 68 21 19 143 16 4 I * 2 Aug.......... 212 17 56 7 28 47 35 190 -2 13 2 9 Sept.......... 170 6 51 1 43 -8 9 102 4 -3 —1 68 Oct........... 191 9 58 13 25 4 106 4 -11 -24 3 113 Nov.......... 56 50 -1 1 24 -2 -6 66 -5 -5 -1 • -3 4 Dec........... 98 9 3 * 38 34 9 93 -9 • 3 • 10 1 1969—Jan........... 163 3 3 2 38 8 34 89 4 2 ♦ 3 66 Feb........... 81 1 3 7 46 -9 48 4 6 -3 10 16 Mar.......... 190 32 43 -1 23 9 12 118 -6 -10 -11 -2 102 Apr.......... 28 — 2 2 34 3 37 8 8 • * 6 -32 May......... 73 9 7 4 25 44 1 88 3 9 7 — 34 June?....... 82 2 -5 55 -2 50 7 2 1 ♦ -1 23 July”........ 67 5 3 1 22 8 5 44 -11 -5 I * ♦ 38 Note.—Statistics include State and local govt, securities, and securities the United States. Also includes issues of new debt securities sold abroad of U.S. Govt, agencies and corporations that are not guaranteed by by U.S, corporations organized to finance direct investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF 20. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (Amounts outstanding; in millions of dollars) (In millions of dollars) Credit Debit Period Total g I i a o n r n e n t d ­ i a , l T c e f o o o ig u t r a n n ­ l ­ r E o u pe ­ C a a d n a ­ A La i m c t a i e n r ­ Asia r A ic f a ­ O c t o r t i h u e e s n r ­ E p n e d ri o o d f fo b ( r a d e l u i a g e n n c e t e o r s s ) f ( o d b r u a e l e i a g n f n r c e o e r m s s ) tries 1964..................................... 116 91 1965................................. 158 119 1967.................. -1,320 -393 -927 3 -768 38 -152 -20 -27 1966..................................... 175 128 1968.................. — 1,684 -329 -1,354 7 -934 -300 -96 -39 6 1967..................................... 311 298 I969-Jan.-Julyp. -978 69 -1,047 6 -804 -81 -162 -7 I 1968—Mar.......................... 351 269 Juner........................ 453 372 1968—July........ -88 -14 -74 53 -56 -60 -7 -4 Sept.r............... 468 398 Aug........ -173 -13 -159 -58 -92 -2 -8 -1 2 Dec........................... 632 506 Sept........ -214 -18 -195 -69 -61 -44 -21 Oct...... -180 -218 39 79 -55 6 -7 16 ♦ 1969—Mar.......................... 552 392 N De o c v . . . . . . . . . . . . . . . . . - -1 1 3 9 6 8 -5 -6 8 - -1 1 3 4 1 0 -6 4 8 1 -1 -1 01 7 -6 -5 0 - - 3 2 5 6 3 * -6 2 JuneP........................ 547 387 1969—Jan......... -155 -32 -122 13 -129 -5 -4 -1 3 Note.—Data represent the money credit balances and Feb......... -174 -5 -170 -3 -163 4 -9 2 money debit balances appearing on the books of reporting Mar........ -18 102 -121 22 -20 -60 -45 -6 -11 brokers and dealers in the United States, in accounts of Apr......... -110 8 -118 -21 -62 -14 -21 1 foreigners with them, and in their accounts carried by May....... -79 3 -83 -16 -43 2 -26 1 foreigners. Junep.... -223 4 -227 -23 -163 -1 -41 * 1 JulyP.. . . -218 -It -207 35 -224 -6 -15 ♦ 3 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 21. 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 '—Cont. Jan. 31.......................... 4,259 Apr. 2......................... 9,206 J F a e n b . . 2 2 9 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 , ^ , 0 0 0 4 7 4 7 0 6 J F a e n b . . 2 2 6 3 . . M . . . . . . a . . . . r . . . . . . . . . 3 . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... 1 1 1. . , , ’,. 9 6 8.. 0 8 7 2 8 9 A M Fe p a b r r . . . 2 2 2 8 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 5 , , , 5 9 02 3 2 0 0 0 2 1 3 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ‘ . . . . . . . . . . . . . . . . 9 . . ...... 1 ..9 9 0 .., , , .5 6 2 ..1 8 9 .1. 1 4 ........... Apr. 29.......................... 1,146 Apr. 27.................... 1,909 May 29.......................... 5,872 30.......................... 9,399 May 27.......................... 1'132 2^003 June 26.......................... 6,202 June 24.......................... ’917 1,951 July 31........................... 6,126 Aug. 28.......................... 7,004 July 29.......................... 1,008 July 27........................... 2,786 Sept. 25........................ 7,104 May 7.......................... 9,977 1 J 66 3’134 14.......................... 9,545 Sept. 30.......................... 1,166 Sept. 28.......................... 3’472 Oct. 30............................ 7,041 21 10,095 Nov. 27........................... 7,170 28 . 9,868 Oct. 28.......................... 1,198 Oct. 26........................... 3,671 Dec. 4.......................... 6,883 Nov. 25.......................... 1,380 Nov. 30........................... 3,786 11........................... 7,356 Dec. 30......................... 1’183 Dec. 28.......................... 4’,036 18.......................... 7,232 25.......................... 6,948 June 4.......................... 10,808 1965 1967 11.......................... 11,847 1969' 18.......................... 13,029 J M F a e a n b r . . . 2 2 3 7 4 1 . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 , , 3 4 3 9 3 5 1 2 8 M Fe a b r . . 2 2 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 , , , 6 4 3 5 1 9 3 2 6 Jan. 1 8 1 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 8 , , , 0 0 4 8 3 8 3 9 5 25.......................... 13,228 A M p a r y . 2 2 8 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 , , 4 4 3 3 3 2 A M p a r y . 2 3 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 , , 7 04 7 7 6 2 29 2........................... 8 8 , , 5 54 3 5 6 July 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .......... * 1 1 3 2 , , 7 7 1 7 9 6 lune 30.......................... 1 ,436 3,166 Feb. 5.......................... 8,531 16.................... 14,162 12.......................... 8,273 23 .. 14,241 Inly 28.......................... 1,572 July 26.......................... 3,660 19.......................... 8,531 30.................... 14,324 Aug, 25.......................... 1'7^2 3,976 26.......................... 8,822 Sept. 29.......................... 1,611 Sept 27 ......................... 4,059 Mar. 5.......................... 9,113 Aug. 6.......................... 14,077 Oct. 27...................... 1,719 Oct. 25.......................... 4,322 12........................... 9,382 " 13.......1..4.,.2..0..9.. ......... Nov. 24........................ 1 ,697 Nov. 29.......................... 4,206 19.......................... 9,720 20.......................... 14,672 Dec. 29.......................... 1 ,345 Dec. 27.......................... 4,241 26........................... 9,621 27.......................... 14,550 Note.—The data represent gross liabilities of reporting banks to their branches in foreign countries. For weekly data covering the period Jan. 1964-Mar. 1968, see May 1968 Bulletin, page A-104. 22. DEPOSITS, U.S. GOVT. SECURITIES, 23. SHORT TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGNERS (In millions of dollars) (In millions of dollars) Payable in Payable in dollars foreign currencies Assets in custody End of End of United period Deposits U.S. Govt, Earmarked period Total S te h r o m rt ­ S t h er o m rt ­ K d i o n m g­ Canada securities 1 gold Deposits invest­ Deposits invest­ ments1 ments1 1966............. 174 7,036 12,946 1967............. 135 9,223 13,253 1966................. 973 757 48 109 59 441 301 JI ,078 768 133 127 49 537 309 1968—Aug... 127 7,590 13,357 19672................ (1,163 852 133 128 49 621 309 Sept... 192 7,777 13,187 Oct.... 100 7,956 13,151 1968—June.... 1 ,850 1,539 114 134 63 1,222 327 Nov... 220 9,673 13,059 July....... 1,837 1,537 124 131 45 1,236 286 Dec... 216 9,120 13,066 Aug....... 1,996 1,704 116 132 44 1,377 281 Sept....... 1,835 1,410 90 298 37 1,183 241 1969—Jan... . 126 7,893 13,132 Oct........ 1 ,768 1,393 95 229 51 1,134 242 Feb... 121 8,062 13,160 Nov....... 1,829 1,398 106 265 60 1,155 261 Mar... 164 8,012 13,176 Dec..... 1 ,638 1 ,219 87 272 60 979 280 Apr.. . 130 8,526 13,128 May.. 107 10,035 13,037 1969—Jan......... 1 ,775 1 ,350 101 245 79 1,076 333 June.. 155 7,710 13,039 Feb. '. .. L861 1,388 122 243 107 1,099 405 July... 158 7,419 13,050 Mar.'... 1,841 1,342 105 261 132 1,046 457 Aug... 143 8,058 13,033 Apr.'.. . 1 ,808 1,301 119 267 121 1,010 462 May'... 1,966 1,408 95 347 U6 1,053 518 June.. .. 1,743 1,197 106 347 93 936 435 1 U.S. Treasury bills, certificates of indebtedness, notes, and bonds; includes securities payable in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than I year from the date on which the Note.—Excludes deposits and U.S. GovL securities obligation was incurred by the foreigner. held for international organizations. Earmarked gold 2 Data on the two lines for this date differ because of changes in reporting coverage. is gold held for foreign and international accounts and Figures on the first line are comparable in coverage with those shown for the preceding is not included in the gold stock of the United States. date; figures on the second fine are comparable with those shown for the following date. Note.—Data represent the liquid assets abroad of large nonbanking concerns in the United States. They are a portion of the total claims on foreigners reported by nonbanking concerns in the United States and are included in the figures shown in Table 25. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 24. 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 1968 1969 1968 1969 Mar. June Sept. Dec. Mar.” Mar. June Sept. Dec. Mar.’’ Europe: Austria.................................................. 2 3 2 3 3 17 6 6 5 5 Belgium-Luxembourg.......................... 29 47 60 78 79 44 54 68 49 61 Denmark.............................................. 43 8 8 4 2 10 9 10 12 12 Finland................................................. 4 4 4 4 7 9 9 9 6 France.................................................. 68 92 114 112 112 128 136 157 145 140 Germany, Fed. Rep. of....................... 108 125 150 120 112 128 127 174 204 153 Greece.................................................. 12 15 14 11 5 20 24 26 27 22 Italy...................................................... 59 60 64 63 57 111 119 130 124 119 Netherlands......................................... 71 84 65 42 55 78 86 67 54 59 Norway.............................................. . 4 4 5 4 6 10 10 10 10 12 Portugal................................................ 4 6 8 4 7 6 8 8 7 7 Spain.................................................... 34 50 48 37 40 88 72 76 71 85 Sweden................................................. 17 24 26 25 20 26 26 26 26 25 Switzerland........................................... 63 70 112 116 115 31 32 71 39 49 Turkey.................................................. 3 3 3 5 5 9 9 7 6 13 United Kingdom................................. 255 274 407 393 384 1 ,095 1,527 1 ,450 1,219 1,309 Yugoslavia........................................... 1 1 1 1 6 6 4 7 8 Other Western Europe........................ 4 6 5 9 13 12 13 15 16 17 Eastern Europe.................................... 1 1 1 2 2 10 10 6 8 12 Total............................................. 783 877 1 ,096 1,032 1,018 1,836 2,282 2,318 2,038 2,115 Canada.................................................... 191 199 199 194 166 501 559 501 540 704 Latin America: Argentina............................................. 5 6 7 6 8 28 31 36 46 45 Brazil.................................................... 13 18 19 16 17 83 87 102 91 90 Chile..................................................... 10 12 6 5 4 31 30 38 36 39 Colombia....................................... 6 9 7 7 7 25 25 25 29 26 Cuba..................................................... 2 2 2 2 2 Mexico.................................................. 7 9 9 6 7 109 83 94 103 111 Panama................................................ 5 3 5 3 4 10 12 15 15 14 Peru...................................................... 6 5 6 7 7 28 28 28 26 28 Uruguay............................................... 2 1 1 1 1 4 5 4 6 5 Venezuela............................................. 35 35 36 33 27 62 59 57 67 60 Other L.A. republics............................ 15 18 23 20 16 59 63 72 82 78 Bahamas and Bermuda........................ 9 12 10 18 19 35 36 46 66 66 Neth. Antilles & Surinam.................... 5 4 4 5 3 5 6 5 6 6 Other Latin America........................... 2 2 1 2 2 9 8 8 9 11 Total............................................. 120 133 134 130 122 490 474 532 584 579 Asia: Hong Kong.......................................... 4 4 4 5 4 7 10 10 8 9 India..................................................... 13 14 10 12 15 41 37 39 34 32 Indonesia.............................................. 4 5 3 4 5 6 6 7 7 8 Israel.................................................... 4 17 15 17 13 7 10 9 6 11 Japan.................................................... 75 78 91 89 99 178 175 195 207 200 Korea................................................... 1 1 1 1 2 12 14 18 21 22 Philippines........................................... 8 8 10 9 8 26 22 21 25 25 Taiwan.................................................. 6 4 3 5 5 8 12 12 19 19 Thailand............................................... 2 2 2 2 2 13 15 15 16 13 Other Asia........................................... 46 45 36 31 39 86 90 97 134 120 Total............................................. 165 176 175 176 193 383 392 423 477 460 Africa: Congo (Kinshasa)................................ 1 1 1 1 1 2 5 3 2 3 South Africa......................................... 7 6 12 11 9 17 16 19 31 27 U.A.R. (Egypt).................................... 4 6 4 5 5 5 6 6 7 7 Other Africa......................................... 16 12 8 8 14 37 37 37 37 41 Total............................................. 29 24 25 24 29 61 64 65 76 78 Other countries: Australia.............................................. 53 46 43 44 44 57 62 58 54 56 AH other.............................................. 7 7 6 5 5 12 10 9 11 11 Total............................................. 60 53 49 49 49 69 72 68 65 67 International and regional...................... * • * * * * 1 1 1 2 Grand total................................. 1,348 1 ,463 1,678 1 ,606 1,578 3,341 3,845 3,907 3,781 4,003 Note.—Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks, and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their foreign affiliates. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ SEPTEMBER 1969 25. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l in l a a b rs le cu P fo r a r r e y e in n a ig c b n i l e e s Total P d a o y i l n l a a b rs le b D a e n p k o s s i a ts b r w oa ith d Other in reporter’s name 1965—Mar................................................................................. 695 531 165 2,612 2,147 189 277 June................................................................................ 740 568 172 2'411 I '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 2jll0 199 275 Sept.. ............................................................................ 1,353 1,029 324 2,555 2,U6 192 246 Dec............................................................................... 1 ,371 1 '027 343 2,946 2,529 201 216 Dec. I............................................................................... 1,386 1 '039 347 3'01 1 2,599 203 209 (968—Mar.................................................................................. 1,348 981 367 3.341 2,908 211 222 June................................................................................. 1,463 1 ,046 417 3’845 3’406 210 229 Sept .............................................................................. 1 '678 1,271 407 3,907 3^292 422 193 1 '606 1 '223 382 3 781 3,172 368 241 1969—Mar. p.............................................................................. 1,578 1,182 397 4,003 3,325 350 328 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 26. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (In millions of dollars) Claims End of period Total Country or area 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 1965—Mar....................... 115 1,075 35 121 203 220 74 137 81 96 91 18 June....................... 110 1,081 31 118 208 221 70 144 85 96 91 17 Sept....................... 120 1,101 31 116 230 217 74 138 89 96 91 18 Dec........................ 136 1,169 31 112 233 209 69 196 98 114 89 17 Dec. 1..................... 147 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar....................... 176 1,156 27 124 239 208 61 206 98 87 87 19 June....................... 188 1 ’207 27 167 251 205 61 217 90 90 86 14 Sept........................ 249 11235 23 174 267 202 64 207 102 91 90 14 Dec........................ 329 11256 27 198 272 203 56 2i2 95 93 87 13 1967—Mar....................... 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 11488 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 June...................... 747 1 1568 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 I 739 142 312 381 194 73 231 128 156 83 38 1969—Marp..................... 1,235 1,805 165 348 383 194 75 224 126 176 72 43 t Data differ from that shown for Dec. in line above because of changes in reporting coverage. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Ar ( g p e es n o ti ) na (s A c u h s il t li r n ia g) B (f e ra lg n iu c m ) C (d a o n l a la d r a ) C (ru e p y e lo e n ) D ( e kr n o m n a e r ) k (m Fi a nl r a k n k d a) (pound) (dollar) 1 1 9 9 6 6 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................................... . . 5 7 9 1 5 7 1 8 7 6 2 2 2 2 2 2 . .4 7 8 8 3 3 . . 8 8 7 6 0 9 4 8 2 2 . . 0 0 1 09 4 9 4 9 9 2 2 . . 7 6 4 8 3 9 2 2 0 0 . , 9 9 8 5 8 9 1 1 4 4 . . 4 4 6 6 0 0 3 3 1 1 , . 0 0 6 7 7 0 1966.............. .48690 223.41 1111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967.............. .30545 111,25 3.8688 2.0125 92.689 20.501 14.325 229.553 1968.............. .28473 111.25 3.8675 2,0026 92.801 16.678 13.362 23.761 1968—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 16.67 8 13.321 23.763 Nov.. . .28476 110.89 3.8664 31.9927 93.177 16,675 <13.308 <23.757 Dec.. ............................................. .28500 ...............1..10.82 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 June... .28490 111.07 3.8647 1.9868 92.628 16,795 13.282 23.785 July. .. .28490 1 II .11 3,8664 1.9889 92.526 16.785 13.282 23.771 Aug.. ............................................ .28490 ...............1..10.87 3.8668 1.9885 92.743 16.784 13.282 23.785 Period ( F fr ra a n n c c e ) ( G d m e e u r a m ts rk a 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 ( a ye p n a ) n M (d a o la ll y a s r i ) a 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 25.007 516.596 279.30 .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—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.. . <20.121 625.153 13.230 238.58 3. 16037 .27925 32.538 8,0056 427.556 Dec............................................... 20.199 25.032 13.234 238.42 .16026 .27940 32.614 8.0056 27.710 1969—Jan.. .. 20.199 24.978 13.244 238.70 .16022 .27934 32.640 8,0056 27.636 Feb.... 20.188 24.881 13,244 239.14 .15978 .27945 32,675 8.0056 27.581 Mar.. . 20,167 24.879 13,244 239.17 .15911 .27935 32.639 8.0056 27.565 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 June... 20.110 24.992 13.223 238.95 .15946 . 27880 32.638 8.0056 27.424 July. .. 20.110 25.002 13.228 239,04 .15926 .27809 32.586 8.0056 27,469 Aug.. ............................................ 718.627 25.083 13.218 238.53 .15915 .27810 32.605 8.0056 27.635 Period (pou N n e d w ) Zea ( la d n o d llar) N (k o ro rw n a e y ) ( P e o s r c t u u d g o a ) l ( A S ra o fr n u ic t d h a ) (p S e p s a e i t n a) ( S k w ro e n de a n ) ( e S fr r w l a a n i n tz c d ­ ) ( U p K d o n i o n u it m n g 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 8131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 1968.............. 111.37 14.000 3.4864 139,10 1.4272 19.349 23.169 239.35 1968—Aug.. . 111.26 13.999 3.4863 138.96 1.4284 19.369 23.223 239.11 ■ Sept.. . 111.08 13.997 3,4846 138.74 1.4282 19.371 23.251 238.74 Oct.... 111.19 13.998 3,4844 138.88 1.4282 19.335 23.270 238.97 Nov.. . 111.01 <13.999 <3.4855 138.65 31.4281 619.323 23.256 238.58 Dec............................................... 110.93 14.000 3.4886 138.56 1.4279 19.323 23.259 238.42 1969—Jan.... 111.06 13.988 3.4925 138.72 1.4278 19.340 23.146 238.70 Feb.... 111.27 13.988 3.4975 138.98 1.4279 19.326 23.145 239.14 Mar.. . 111.28 14.001 3.5042 138.99 1.4277 19.340 23.261 239.17 Apr.... 111.35 14.007 3.5036 139,08 1.4271 19.350 23.135 239.31 May... 111.04 13.999 3,4985 138.69 1.4262 19.337 23.117 238.65 June... 111.18 14.014 3,4989 138.87 1.4260 19.327 23,176 238.95 July... 111.22 14.005 3.5011 138.92 1.4267 19.337 23.197 239.04 Aug.. . .......................................... 110.99 13.998 3.5031 138.62 1.4277 19.345 23,228 238.53 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 8 Effective July 10, 1967, New Zealand adopted the decimal currency system. The new unit, the dollar, replaces the pound and consists of 100 system. The new unit, the dollar, replaces the pound and consists of 100 cents, equivalent to 10 shillings or one-half the former pound. cents, equivalent to 10 shillings or one-half the former pound. 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 to 4.2 markkaa per U.S. dollar. Note.—After the devaluation of the pound sterling on Nov. 18, 1967. 3 Quotations not available 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. 3 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, see “International Finance,” 6 Quotations not available Nov. 20-21, 1968. Section 15 of Supplement to Banking and Monetary Statistics, 1962. 7 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to 5.55 francs per U.S. dollar. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 90 MONEY RATES □ SEPTEMBER 1969 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Aug. 31, 1968 Rate Country 1968 1969 as of Aug. 31, Per Month 1969 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. 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 7.0 7.0 Brazil.................................. 22.0 Jan. 1967 20.0 20.0 Burma.................................. 4.0 Feb. 1962 4.0 Canada 1.............................. 6.5 July 1968 6.0 6.5 7.0 7.5 8.0 8.0 Ceylon.................................. 5.5 May 1968 5.5 Chile 2.................................. 16.61 Jan. 1968 19.09 19.59 19.59 Colombia.............................. 8.0 May 1963 8.0 Costa Rica............................ 4.0 June 1966 4.0 Denmark.............................. 6.0 Aug. 1968 7.0 9.0 9.0 Ecuador................................ 5.0 Nov. 1956 5.0 El Salvador.......................... 4.0 Aug. 1964 4.0 Finland................................ 7.0 Apr. 1962 7.0 France.................................. 5.0 July 1968 6.0 7.0 7.0 Germany, Fed. Rep. of....... 3.0 May 1967 4.0 5.0 5.0 Ghana.................................. 5.5 Mar. 1968 5.5 Greece.................................. 5.0 July 1968 5.5 6.0 6.0 Honduras 3.......................... 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 8.0 8.0 Ireland.................................. 7.25 Aug. 1968 6.86 6.81 7.0 7.17 7.12 8.0 8.75 8.38 8.5 8.44 8.44 Israel..................................... 6.0 Feb. 1955 6.0 Italy...................................... 3.5 June 1958 4.0 4.0 Jamaica............................... 6.0 Nov. 1967 5.0 5.5 6.0 6.0 Japan .................................... 5.84 Aug. 1968 5.84 Korea................................... 28.0 Dec. 1965 26,0 26.0 Mexico.................................. 4.5 June 1942 4.5 Netherlands.......................... 4.5 Mar. 1967 5.0 5.5 6.0 6.0 New Zealand........................ 7.0 Mar. 1961 7.0 Nicaragua............................ 6.0 Apr. 1954 6.0 Norway.............................. 3.5 Feb. 1955 3.5 Pakistan................................ 5.0 June 1965 5.0 Peru...................................... 9.5 Nov. 1959 9.5 Philippine Republic............ 7.5 Feb. 1968 8.0 10.0 10.0 Portugal..................... 2.5 Sept. 1965 2.75 2.75 South Africa................... 5.5 Aug. 1968 5.5 Spain................................... 4.5 Nov. 1967 5.5 5.5 Sweden................................. 5.5 Feb. 1968 5.0 6.0 7.0 7.0 Switzerland.......................... 3.0 July 1967 3.0 Taiwan ...................... 11.9 Aug. 1968 10.8 10,8 Thailand.............................. 5.0 Oct. 1959 5.0 Tunisia................................ 5.0 5.0 Turkey................................ 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom................. 7.5 Mar. 1968 7.0 8.0 8.0 Venezuela............................. 4.5 Dec. 1960 5.5 5.5 i On June 24, 1962, the bank rate on advances to chartered banks Colombia—5 per cent for warehouse receipts covering approved lists of was fixed at 6 per cent. Rates on loans to money market dealers will products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent continue to be .25 of 1 per cent above latest weekly Treasury bill tender for rediscounts in excess of an individual bank’s quota; average rate, but will not be more than the bank rate. Costa Rica—5 per cent for paper related to commercial transactions 2 Beginning with Apr. 1, 1959, new rediscounts have been granted at (rate shown is for agricultural and industrial paper); the average rate charged by banks in the previous half year. Old redis­ Ecuador—6 per cent for bank acceptances for commercial purposes; counts remain subject to old rates provided their amount is reduced by Indonesia—various rates depending on type of paper, collateral, com­ one-eighth each month beginning with May 1, 1959, but the rates are modity involved, etc.; raised by 1.5 per cent for each month in which the reduction does not Japan—penalty rates (exceeding the basic rate shown) for borrowings occur. from the central bank in excess of an individual bank’s quota; 3 Rate shown is for advances only. Peru—5 and 7 per cent for small credits to agricultural or fish production, import substitution industries and manufacture of exports; 8 per cent for Note.—Rates shown are mainly those at which the central bank either other agricultural, industrial and mining paper; discounts or makes advances against eligible commercial paper and/or Philippines—6 per cent for financing the production, importation, and dis­ govt, securities for commercial banks or brokers. For countries with tribution of rice and corn and 7.75 per cent for credits to enterprises en­ more than one rate applicable to such discounts or advances, the rate gaged in export activities. Preferential rates are also granted on credits to shown is the one at which it is understood the central bank transacts rural banks; and the largest proportion of its credit operations. Other rates for some Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. of these countries follow: 1962), and 5 per cent for advances against govt, bonds, mortgages, or gold, Argentina—3 and 5 per cent for certain rural and industrial paper, de­ and 6 per cent for rediscounts of certain industrial paper and on advances pending on type of transaction; against securities of Venezuelan companies. Brazil—3 per cent for secured paper and 4 per cent for certain agricultural paper; Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 a MONEY RATES; ARBITRAGE A 91 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 ill n s s u t , h ry s ’ m Da o d y n a - e y t o y2 ­ 3 B a a m a 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 o ill 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 e a w p n o o k a n s e n i r c t s s e ’ D m a o d y n a - y e t o y ­ 3 Tr 6 d e b a 0 a i y l - l s 9 s s u 0 , 4 r y D m a o d y n a - y e t o y3 ­ 3 T 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 a iv 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............. 5.80 5.67 7.78 7.52 6.83 6.00 4.76 2.75 2.77 4.SI 4.05 3.75 1968—July............ 6.21 5.68 7.58 7.15 6.51 5.50 6.00 2.75 2.43 4.57 4.40 3.75 Aug............ 5.75 5.04 7.44 6.95 6.43 5.50 5.92 2.75 3.07 4.47 3.81 3.75 Sept............ 5.62 5.11 7.24 6.74 6.21 5.31 6.76 2.75 2.66 4.39 3.73 3.75 Oct............. 5.63 5.10 6.97 6.51 5.93 5.00 7.08 2.75 3.18 4.47 4.15 3.75 Nov............ 5.64 4.73 7.03 6.67 5.92 5.00 9.16 2.75 1.55 4.50 4.86 3.75 Dec............. 5.96 5.31 7.26 6.80 5.99 5.00 8.22 2.75 1.84 4.65 4.96 3.75 1969—Jan.............. 6.36 6.02 7.28 6.77 5,91 5.00 8.04 2.75 3.30 4.90 4.44 3.75 Feb............. 6.31 5.34 7.32 6.97 6.08 5.08 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 8.34 3.75 2.46 5.39 5.77 4,00 May........... 6.74 6.67 8.46 7,82 6.88 6.00 8.96 3.75 1.63 5.50 5.88 4.00 June........... 7.03 6.98 8.73 7.89 6.66 6.00 9.46 4.75 5.02 5.50 5.92 4.06 July............ 7.49 7.40 8.88 7.86 6.95 6.00 4.75 5.80 5.50 7.17 4.25 1 Based on average yield of weekly tenders during month 5 Monthly averages based on daily quotations. 2 3 R Ba a s te ed s h o o n w w n e i e s k 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 a to n d B a b n a k c in k g d a a n ta d , M se o c 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 62 a . nce,’’ * Rate in effect at end of month. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date q K ( u U a i b n o U d a n g t . s j i a S d . t i e t s o . t i ) d o o m n U S n ta it te e s d L S o (f p n a o r d v e f o o a d n r ) d f ( ( o p i s + — r o c w u ) o ) a n u o o r d n n d r t i L n ( o c f N n a e o d v n e f o o t t i v n r e ) qu A o in s te d C ana q d u a A o U d t . j a S . t . i t o o n U S n ta it t e es d C S ( a f p a n o r v a e f o d a d r a ) C d f ( ( d o a is + - o r n c w ) l a ) l o a d a o u r o i r s a n n d r n t i C n ( c a f N a e n o v n a e f o d t t i v a r e ) Canada basis 1969 Apr. 3. . ......... 7.60 6.05 1.55 -2,79 -1.24 6.55 6.36 6.05 .3! + .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 -2.7! -1.25 6.69 6.49 6.17 .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 13............. 7.71 6.73 .98 -4.04 -3.06 7.09 6.88 6.73 .15 + 1.30 + 1.45 20............. 7.71 6.53 1.18 -4.04 -2.86 7.11 6.89 6.53 .36 + 1.64 + 2.00 27............. 7.58 6.08 1 .50 -3.30 -1.80 7.11 6.89 6.08 .81 + 1.41 +2.22 July 3............. 7.58 6.80 .78 -3.30 -2.52 7.13 6.91 6.80 .11 + 1.60 + 1.71 11............. 7.78 6.93 .85 -2.97 -2.12 7.35 7.13 6.93 .20 + 1.64 + 1.84 18............. 7.68 7.00 .68 -2.73 -2.05 7.63 7.39 7.00 .39 + 1.12 + 1.51 25............. 7.64 7.07 .57 -2.51 -1.94 7.63 7,39 7.07 .32 + 1.12 + 1.44 Aug. 1............. 7.64 7.01 .63 -2.60 -1.97 7.60 7.36 7.01 .35 + .82 + 1.17 8............. 7.64 6.94 .70 -2.80 -2.10 7.60 7.36 6.94 .42 + .78 + 1.20 15............. 7.64 6.86 .78 -7.91 -7.13 7.62 7.38 6.86 .52 + .69 + 1.21 22............. 7.64 6.86 .78 -8.16 -7.38 7.66 7.42 6.86 .56 + .69 + 1.25 29.............. 7.64 6.99 .65 -8.33 -7.68 7.66 7.42 6.99 .43 + .48 + .91 Sept. 5............. 7.58 7.02 .56 -8.92 -8.36 7.73 7.49 7.02 .47 + .61 + 1.08 Note.—Treasury bills'. AU rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of scries 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 92 GOLD RESERVES □ SEPTEMBER 1969 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Inti. Esti­ E pe n r d io o d f m to a t t a e l d M ta o r n y e ­ U St n a i t t e e s d r m es a t t e o d f A is fg ta h n a n r ­ Ar ti g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world i 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 >80 45 84 1 ,015 45 1968--July............... 2,212 10,676 33 94 259 714 1 ,518 45 84 926 45 Aug........ 2,230 10,681 33 99 260 714 1 ,518 45 84 926 45 Sept.............. 40,725 2,296 10,755 27,675 33 104 258 714 1 ,524 45 84 863 45 Oct.............. 2,299 10,788 33 109 258 714 1,522 45 84 863 45 Nov............. 2,286 10,897 33 109 257 714 1 ,522 45 84 863 45 Dec............... 40,905 2,288 10,892 27,725 33 109 257 714 1,524 45 84 863 46 1969-—Jan................ 2,288 10,828 33 109 258 714 1 ,524 45 84 863 47 Feb.............. 2,292 10,801 33 109 257 714 1 ,522 45 84 863 46 Mar......... 41,050 2,295 10,836 27,920 33 109 256 714 1 ,522 45 84 863 46 Apr............... 2 297 10,936 33 109 255 714 1,522 45 84 863 47 May............ 2,301 11,153 33 109 256 714 1,522 45 84 863 46 Junep........... 40,950 2,257 11,153 27,540 33 110 258 715 1 ,522 45 84 866 Julyp............ 2,'316 (1,144 33 258 715 1,522 84 866 Ger­ E pe nd rio o d f lo C m o b ­ ia m De a n rk ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 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 HO 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--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 1,923 356 Feb............... 31 114 45 3,877 4,541 132 243 158 193 79 46 2 925 356 Mar............... 30 114 45 3,827 4,541 132 243 158 193 79 46 2,924 357 Apr............... 30 114 45 3,726 4,541 131 243 158 193 79 46 2.924 359 May............. 29 88 45 3,551 4,542 130 243 158 193 79 46 2,926 359 Junep............ 29 89 45 3,552 4,563 130 243 158 193 79 46 2,937 363 Julyp............. 29 89 45 3,551 4,563 243 158 193 79 46 2,936 363 E pe n r d io o d f Kuwait a L n e o b n ­ Libya Ma si l a ay­ M c e o xi­ Mo c r o oc­ N la e n th d e s r­ N w o ay r­ P st a a k n i­ Peru P p h in i e lip s ­ Po ga rt l u­ A S r a a u b d ia i 1962......................... 49 172 3 3 95 29 1,581 30 53 47 41 471 78 1963......................... 48 172 7 8 139 29 1,601 31 53 57 28 497 78 1964......................... 48 183 17 7 169 34 1 ,688 31 53 67 23 523 78 1965......................... 52 182 68 2 158 21 1 ,756 31 53 67 38 576 73 1966......................... 67 193 68 109 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--July............... 122 288 85 66 165 21 1,697 24 54 20 69 761 94 Aug............... 116 288 85 66 165 21 1,697 24 54 20 61 835 119 Sept.............. HO 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 2! 1 ’697 24 54 20 62 856 1 1969--Jan................ 122 288 85 66 165 21 1 ,697 24 54 20 58 857 19 Feb............... 124 288 85 66 165 21 1 ,698 23 54 20 60 856 19 Mar.............. 123 288 85 65 165 21 1 ,698 24 54 25 65 856 19 Apr............... 123 288 85 65 165 21 1,698 24 54 25 67 860 19 May.............. 120 288 85 64 165 21 1,698 24 54 25 56 860 19 JuneP............ 120 288 85 21 1,703 24 54 25 52 860 19 JulyP............. HO 288 85 1,703 24 54 25 52 19 For notes see end of table. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ GOLD RESERVES AND PRODUCTION A 93 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe nd ri o o d f A So fr 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 .R pt . ) 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............................ 499 446 181 2,667 43 104 140 174 2,582 180 401 4 -50 1963............................. 630 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 1964............................. 574 616 189 2,725 55 104 104 139 2J36 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— 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 Apr.................. 1 '409 785 225 2,644 81 92 97 93 1 36 403 50 -286 1 '282 785 225 2 643 81 92 97 93 136 403 50 — 282 June”............... 1 ’,264 785 225 2’643 81 92 97 93 , 1,474 403 50 -285 JulyP................. 1 '171 785 225 2,643 92 107 403 -275 i Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e„ gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see "Gold,” Section 14 of z 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 i ­ A S f o r u ic th a d R e h s o ia ­ Ghana C s ( h K o a n i s n g a ­ o ) U S n ta i t t e e s d C a a d n a ­ M ic e o x­ r N ag ic u a a ­ Co b l i o a m­ India P p h in il e ip s ­ t A ra u l s ia ­ ot A he ll r 1961.. 1,215.0 803.0 20 29 2 8 54 8 156.6 7.9 14.0 5.5 14.8 37.7 53.9 1962.. 1,295.0 892.2 19 4 31 7 54 5 146.2 7.8 13.9 5.7 14.8 37.4 56.6 1963.. 1,355.0 960.1 19 8 32 2 7 5 51 4 139.0 7.2 4.8 13.2 35.8 64.3 1964.. 1,405.0 1 ,018.9 20 30 3 6 6 51 4 133.0 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 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 63 114.6 7.0 9.8 4.2 15.8 32.1 61.2 1967.. 1,410.0 1,068.7 18 0 26 7 5 4 53 4 103.7 6.2 9.0 3.4 17.2 28.4 63.5 1968”. 1,420.0 1,088.0 17 5 25 4 5 9 53 9 94.1 6.8 8.4 4.0 18.5 27.6 63.7 196#“ June. 91.5 2 21 6 7.5 .6 1.6 2.9 July. 90.5 7.4 .8 2.2 Aug. 91.5 7.7 .6 2.3 Sept. 93.7 8.3 .6 24.6 2.3 Oct.. 92.4 7.7 .7 2.6 Nov. 87.9 7.5 .6 1.9 Dec. 83.5 7.7 2.2 1969—Jan.. 83.4 7.8 1.8 Feb.. 86.7 7.1 2.0 Mar. 89.1 7.6 Apr.. 89.3 7.3 May. 90.0 7.4 June. 91.3 7.3 t Estimated; excludes U.S.S.R., other Eastern European countries, Note.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 94 STOCK MARKET CREDIT □ SEPTEMBER 1969 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE CARRYING MARGIN ACCOUNTS ON JUNE 1961-68 (In millions of dollars) Item 1961 1962 1963 1964 1965 1966 1967 1968 DEBIT BALANCES Cash on hand and in banks....................................................................... 422 437 422 466 515 601 686 868 Securities— Borrowed........................................................................................... 152 151 181 20! 255 515 805 1,347 Sold, delivery pending (failed to deliver)............................................... 530 368 275 369 448 823 1,588 3,722 Net debit balances due from member firms of national securities exchanges............................................................................................ 252 191 244 224 221 257 291 484 Debit balances due from all other customers, exclusive of general partners or voting stockholders—Total................................................. 4,072 3,636 4,947 5,384 5,173 5,846 6,232 19 249 In stock margin accounts......................................................................... [6,130 In convertible bond margin accounts....................................................... 100 In subscription accounts.......................... ........................................ 104 fn cash accounts....................................... .......................................... 2,675 In other (including U.S. Govt, securities)................................................. 240 Net debit balances in general partners’ or voting stockholders’ individual investment and trading accounts.............................................. 58 74 70 78 84 90 109 100 Debit balances in— Firm investment accounts...................................................................... 293 243 247 264 325 358 477 617 Firm trading and underwriting accounts............................................. 582 520 694 959 I ,445 1,240 1,618 1,673 Commodity margins on deposit with banks, and commodity guaranty funds on deposit...................................................................... 22 30 31 28 41 55 49 All other debit balances............................................................................. 309 303 347 389 410 519 1 ,024 1,103 Total................................................................................... 6,694 5,954 7,460 8,364 8,917 10,304 12,880 9,250 CREDIT BALANCES Money borrowed—Totals......................................................................... 2,880 2,305 4,027 4,499 4,541 3,969 3,690 4,017 From banks and trust companies: In New York City.............................................................................. 1,515 1,007 1,852 2,273 2,662 2,518 2,215 2,419 Elsewhere in the U.S......................................................................... 501 732 1'303 1,353 1,180 859 903 927 From U.S. agencies of foreign banks. .......................................... 817 525 815 859 ’711 552 494 581 From other lenders (not including members of national securities exchanges)......................................................................................... 47 4! 56 14 28 39 79 89 Securities— Loaned.................................................................................................... 233 211 244 268 340 664 674 1,542 Bought delivery pending (failed to receive).......................................... 568 363 289 393 433 851 1 ,660 4,014 Net credit balances due to member firms of national securities exchanges............................................................................................ 197 170 214 206 199 231 309 431 Credit balances due to other customers exclusive of general partners or voting stockholders-—'Total............................................................ 1 ,599 1,771 1 ,484 1,531 1,775 2,479 3,363 15,565 In free credit balances in cash accounts............................................................. (2,687 In free credit balances in margin accounts........................................................ 728 In credit balances In short accounts....................................................... 1,064 In other net credit balances.................................................................... 1,086 Credit balances and money borrowed which are subordinated to general creditors under approved agreements............................................. 31 51 90 111 141 154 190 243 Net credit balances in general partners’ or voting stockholders' individual investment and trading accounts......................................... 47 43 36 37 48 59 81 99 Credit balances in firm investment and trading accounts....................... 100 76 116 173 214 270 556 589 Net balance in capital accounts 3 and profit and loss accounts and 797 771 759 866 919 1,125 1,353 1,736 All other credit balances ......................................................................... 241 193 200 279 306 504 704 1,014 Total.................................... .............................................. 6,694 5,954 7,460 8,364 8,917 10,304 12,880 9,250 MEMO: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of U.S. Govt, or its agencies.................... 38 23 27 10 12 18 13 61 Entirely by bonds other than convertible bonds and U.S. Govt. securities....................................................................................... 108 93 188 156 104 100 103 30 Ry ponexempt securities or mixed collateral................................. 2,289 1 ,833 3,181 3,616 3,301 2,919 2,184 2,805 Secured by firm or general partners’ or voting stockholders’ collateral: Entirely by obligations of US.. Govt, or its agencies.................... 41 24 19 166 320 136 336 48 Entirely by bonds other than convertible bonds and U.S. Govt. securities..................................................................................... 104 106 119 125 116 147 127 101 By nonexempt securities or mixed collateral.................................... 300 227 492 425 686 645 926 957 Unsecured borrowing other than subordinated to general creditors. 1 I 1 * 2 3 1 13 Total................................................................................... 2,880 2,305 4,027 4,499 4,541 3,969 3,690 4,017 Amount to be repaid for securities sold under repurchase agreements... 27 42 44 134 137 122 326 192 Number of firms......................................................................................... 336 337 335 331 331 328 324 346 1 Because of a change in reporting format in 1968, the items “debit differ somewhat because of sampling error in the monthly series, statistical balances due from all other customers exclusive of general partners or discrepancies in reporting, and differences in the date of reporting. voting stockholders” and “credit balances due to other customers ex­ 2 Excluding subordinated borrowing. clusive of general partners or voting stockholders” for prior years are not 3 Excluding subordinated indebtedness included in the item “Credit comparable with those for 1968. The difference results essentially from a balances and money borrowed, etc.,’’above. change in the procedure of netting credit balances against debit balances for customers with more than one account at a brokerage firm. The sub­ Note.—End-of-month figures. For a discussion of customer debit item of debit balances “in stock margin accounts” is conceptually equiva­ balances and other figures in this table, see, respectively, “Margin Account lent to credit extended to margin customers by brokers, as reported Credit,” June 1968 Bulletin, and “Statistics on Margin Accounts,” monthly in the table on Stock Market Credit, page A-36, but the data Sept. 1936 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

SEPTEMBER 1969 □ STOCK MARKET CREDIT A 95 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE CARRYING MARGIN ACCOUNTS ON JUNE 30, 1969 (In millions of dollars) NYSE AMEX Total Item member member all firms firms 1 firms DEBIT BALANCES Cash on hand and in banks.................................................................... 978 25 1 ,003 Securities— Borrowed........................................................................................... 1,226 21 1,247 Sold, delivery pending (failed to deliver)..................................... 2,188 80 2,268 Net debit balances due from member firms of national securities exchanges.............................................................................................. 496 28 524 Debit balances due from all other customers, exclusive of general partners or voting stockholders—Total.................................................. 8,316 40 8,356 In stock margin accounts....................................................................... 4,988 15 5,002 bi convertible bond margin accounts.............................................. 160 2 162 In subscription accounts.................................................................. 85 85 In cash accounts.................................................................................... 2,661 22 2,682 in other (including U.S. Govt, securities).............................................. 422 2 424 Net debit balances in general partners’ or voting stockholders’ individual investment and trading accounts...................................... 127 5 133 Debit balances in— Firm investment accounts.................................................................... 696 47 743 Firm trading and underwriting accounts............................................. 2,317 154 2,471 Commodity margins on deposit with banks, and commodity guaranty funds on deposit................................................................................ 82 1 83 All other debit balances.......................................................................... I ,411 17 1 ,429 Total.................................................................................. 17,838 420 18,258 CREDIT BALANCES Money borrowed—Total2........................................................ 4,243 152 4,394 From banks and trust companies: In blew York City............................................................................. 2,716 65 2,780 Elsewhere in the U.S....................................................................... 822 3 825 From U.S. agencies of foreign banks..................................................... 483 34 517 From other lenders (not including members of national securities exchanges)..................................................................... 223 49 272 Securities— 1 ,355 2 1 ,357 Bought, delivery pending (failed to receive)........................................ 2,406 79 2,485 Net credit balances due to member firms of national securities exchanges............................................................ ■ ........................... 381 15 396 Credit balances due to other customers exclusive of general partners or voting stockholders—Total........................................................... 5,331 67 5,398 In free credit balances in cash accounts............................................... 2,528 35 2,563 In free credit balances in margin accounts........................................... 711 7 718 In credit balances in short accounts..................................................... 921 10 931 1,170 16 1,186 Credit balances and money borrowed which are subordinated to general creditors under approved agreements.......................................... 375 6 381 Net credit balances in general partners’ or voting stockholders’ individual investment and trading accounts....................................... 133 134 Credit balances in firm investment and trading accounts....................... 731 21 752 Net balance in capital accounts3 and profit and loss accounts and general partners’ or voting stockholders’ drawing accounts....... 1 ,936 51 1 ,987 All other credit balances.......................................................................... 948 26 973 Total................................................................................... 17,838 420 18,258 MEMO: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of U S. Govt, or its agencies................. 127 127 Entirely by bonds other than convertible bonds and U.S. Govt. securities............................................................................... 54 2 56 By nonexempt securities or mixed collateral............................... 2,854 14 2,868 Secured by firm or general partners’ or voting stockholders’ col­ lateral: Entirely by obligations of U.S. Govt, or its agencies................. 198 104 302 Entirely by bonds other than convertible bonds and U.S. Govt. securities..................................................................................... 108 1 109 By nonexempt securities or mixed collateral................................... 886 17 903 Unsecured borrowing other than subordinated to general creditors 15 15 30 Total................................................................................... 4,243 152 4,394 Amount to be repaid for securities sold under repurchase agreements.. 515 35 550 Number of firms....................................................................................... 352 19 371 1 These are members of the American Stock Exchange (AMEX) that are not members of the New York Stock Exchange (NYSE); AMEX members that are also NYSE members are included under NYSE. 2 Excluding subordinated borrowing. 3 Excluding subordinated indebtedness included in the item, “Credit balances and money borrowed, etc.,” above. Note.—-Details may not add to totals because of rounding. Data in this table as of June 28, 1968, appeared in corrected form in the Oct. 1968 Bulletin. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Wm. McC. Martin, Jr., Chairman J. L. Robertson, Vice Chairman George W. Mitchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer William W. Sherrill Robert C. Holland, Secretary of the Board J. Charles Partee, 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 Bbard 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 Pauline B. Heller, Adviser Brenton C. Leavitt, Deputy Director Frederick R. Dahl, Assistant Director DIVISION OF RESEARCH AND STATISTICS Jack M. Egertson, Assistant Director J. Charles Partee, Director Janet O. Hart, Assistant Director Stephen H. Axilrod, Associate Director John N. Lyon, Assistant Director Lyle E. Gramley, Associate Director Milton W. Schober, Assistant Director Stanley J. Sigel, Adviser Thomas A. Sidman, Assistant Director Tynan Smith, Adviser DIVISION OF PERSONNEL ADMINISTRATION Kenneth B. Williams, Adviser Peter M. Keir, Associate Adviser Edwin J. Johnson, Director Murray S. Wernick, Associate Adviser John J. Hart, Assistant Director James B. Eckert, Assistant Adviser DIVISION OF ADMINISTRATIVE SERVICES . Bernard Shull, Assistant Adviser Louis Weiner, Assistant Adviser Joseph E. Kelleher, Director Joseph S. Zeisel, 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 Jerold E. Slocum, Director Robert F. Gemmill, Associate Adviser John P. Singleton, Associate Director Samuel Pizer, Associate Adviser *On leave of absence. A 96 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 97 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President Deputy Chairman First Vice President in charge of branch Zip code Boston.................... ....02106 Howard W. Johnson Frank E. Morris John M. Fox Earle O. Latham New York..................10045 Albert L. Nickerson Alfred Hayes James M. Hester William F. Treiber Buffalo.............. ....14240 Gerald F. Britt A. A. Maclnnes, Jr. Philadelphia......... ....19101 Willis J. Winn Karl R. Bopp Bayard L. England Robert N. Hilkert Cleveland............... ....44101 Albert G. Clay W. Braddock Hickman J. Ward Keener Walter H. MacDonald Cincinnati........ ....45201 Graham E. Marx Fred O. Kiel Pittsburgh........ ....15230 Lawrence E. Walkley Clyde E. Harrell Richmond.............. ....23213 Wilson H. Elkins Aubrey N. Heflin Robert W. Lawson, Jr. Robert P. Black Baltimore.......... ....21203 Arnold J. Kleff, Jr. Donald F. Hagner Charlotte........... ....28201 James A. Morris Edmund F. MacDonald Atlanta................... ....30303 Edwin I. Hatch Monroe Kimbrel John C. Wilson Kyle K. Fossum Birmingham... ....35202 Mays E. Montgomery Dan L. Hendley Jacksonville........32201 Henry K. Stanford Edward C. Rainey Nashville........... ....37203 James E. Ward Jeffrey J. Wells New Orleans.......70160 Robert H. Radcliff, Jr. Arthur H. Kantner Chicago................. ....60690 Franklin J. Lunding Charles J. Scanlon Emerson G. Higdon Hugh J. Helmer Detroit.............. ....48231 Max P. Heavenrich, Jr. Daniel M. Doyle St. Louis....................63166 Frederic M. Peirce Darryl R. Francis Smith D. Broadbent, Jr. Dale M. Lewis Little Rock........72203 Jake Hartz John F. Breen Louisville.......... ...40201 Harry M. Young, Jr. Donald L. Henry Memphis.......... ....38101 William L. Giles Eugene A. Leonard Minneapolis.......... ....55440 Robert F. Leach Hugh D. Galusha, Jr. David M. Lilly M. H. Strothman, Jr. Helena.............. ....59601 Edwin G. Koch Howard L. Knous Kansas City........... ....64198 Dolph Simons George H. Clay Willard D. Hosford, Jr. John T. Boysen Denver.............. ...80217 Cris Dobbins John W. Snider Oklahoma City.....73125 C. W. Flint, Jr. Howard W. Pritz Omaha.............. ...68102 Henry Y. Kleinkauf George C. Rankin Dallas..................... ....75222 Carl J. Thomsen Philip E. Coldwell Max Levine T. W. Plant El Paso............. ....79999 C. Robert McNally, Jr. Fredric W. Reed Houston............ ....77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio... ...78206 W.A. Belcher Carl H. Moore San Francisco____ ...94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles.... ...90054 Norman B. Houston Paul W. Cavan Portland............ ...97208 Frank Anderson William M. Brown Salt Lake City......84110 Royden G. Derrick Arthur L. Price Seattle............... ...98124 William McGregor William R. Sandstrom Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 99 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Re­ serve System, Washington, D.C., 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic releases, see pp. A 95—A 98 of the June 1969 Bulletin, (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND BANK MERGERS & THE REGULATORY AGENCIES: FUNCTIONS. 1963. 298 pp. APPLICATION OF THE BANK MERGER ACT OF 1960. 1964. 260 pp. $1.00 a copy; 10 or more ANNUAL REPORT. sent to one address, $.85 each. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per BANKING MARKET STRUCTURE & PERFORMANCE IN METROPOLITAN AREAS: A STATISTICAL annum or $.60 a copy in the United States and STUDY OF FACTORS AFFECTING RATES ON its possessions, Bolivia, Canada, Chile, Colom­ BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or bia, Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Hon­ more sent to one address, $.40 each. duras, Mexico, Nicaragua, Panama, Paraguay, THE PERFORMANCE OF BANK HOLDING COM­ Peru, El Salvador, Uruguay, and Venezuela; 10 PANIES. 1967. 29 pp. $.25 a copy; 10 or more or more of same issue sent to one address, $5.00 sent to one address, $.20 each. per annum or $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. FARM DEBT. Data from the 1960 Sample Survey of Agriculture. 1964. 221 pp. $1.00 a copy; 10 FEDERAL RESERVE CHART BOOK ON FINANCIAL or more sent to one address, $.85 each. AND BUSINESS STATISTICS. Monthly. Annual subscription includes one issue of Historical MERCHANT AND DEALER CREDIT IN AGRICUL­ Chart Book. $6.00 per annum or $.60 a copy in TURE. 1966. 109 pp. $1.00 a copy; 10 or more the United States and the countries listed above; sent to one address, $.85 each. 10 or more of same issue sent to one address, $.50 each. Elsewhere, $7.00 per annum or $.70 THE FEDERAL FUNDS MARKET. 1959. Ill pp. a copy. $1.00 a copy; 10 or more sent to one address, $.85 each. HISTORICAL CHART BOOK. Issued annually in Sept. Subscription to monthly chart book includes TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 one issue. $.60 a copy in the United States and a copy; 10 or more sent to one address, $.85 countries listed above; 10 or more sent to one each. address, $.50 each. Elsewhere, $.70 a copy. U.S. TREASURY ADVANCE REFUNDING, JUNE 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 FLOW OF FUNDS IN THE UNITED STATES, 1939­ or more sent to one address, $.40 each. 53. 1955. 390 pp. $2.75. THE FEDERAL RESERVE ACT, as amended through DEBITS AND CLEARING STATISTICS AND THEIR Nov. 5, 1966, with an appendix containing pro­ USE. 1959. 144 pp. $1.00 a copy; 10 or more visions of certain other statutes affecting the sent to one address, $.85 each. Federal Reserve System. 353 pp. $1.25. SUPPLEMENT TO BANKING AND MONETARY STA­ REGULATIONS OF THE BOARD OF GOVERNORS OF TISTICS. Sec. 1. Banks and the Monetary Sys­ THE FEDERAL RESERVE SYSTEM. tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 RULES OF ORGANIZATION AND PROCEDURE­ pp. $.35. Sec. 6. Bank Income 1966. 29 pp. BOARD OF GOVERNORS OF THE FEDERAL RE­ $.35. Sec. 9. Federal Reserve Banks. 1965. 36 SERVE SYSTEM. 1967. 16 pp. pp. $.35. Sec. 10. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ PUBLISHED INTERPRETATIONS OF THE BOARD OF rency. 1963. 11 pp. $.35. Sec. 12. Money Rates GOVERNORS, as of June 30, 1969. $2.50. and Securities Markets. 1966. 182 pp. $.65. Sec. 14. Gold. 1963. 24 pp. $.35. Sec. 15. Inter­ BANK CREDIT-CARD AND CHECK-CREDIT PLANS. national Finance. 1962. 92 pp. $.65. Sec. 16 1968. 102 pp. $1.00 a copy; 10 or more sent to (New). Consumer Credit. 1965. 103 pp. $.65. one address, $.85 each. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 INTEREST RATE EXPECTATIONS: TESTS ON YIELD DISCOUNT POLICY AND BANK SUPERVISION. SPREADS AMONG SHORT-TERM GOVERNMENT 1968. 72 pp, SECURITIES. 1968. 83 pp. $.50 a copy; 10 or more sent to one address, $.40 each. THE LEGITIMACY OF CENTRAL BANKS. 1969. 24 PP- SURVEY OF FINANCIAL CHARACTERISTICS OF CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or SELECTIVE CREDIT CONTROL. 1969. 9 pp. more sent to one address, $.85 each. REPORT OF THE JOINT TREASURY-FEDERAL RE­ SERVE STUDY OF THE U.S. GOVERNMENT SURVEY OF CHANGES IN FAMILY FINANCES. 1968. SECURITIES MARKET. 1969. 48 pp. $.25 a copy; 321 pp. $1,00 a copy; 10 or more sent to one 10 or more sent to one address, $.20 each. address, $.85 each. (Limited supplies of the staff studies on the REAPPRAISAL OF THE FEDERAL RESERVE DIS­ Government Securities Market Study, as COUNT MECHANISM: listed on page 48 on the main report, are REPORT OF A SYSTEM COMMITTEE. 1968. 23 available upon request for single copies. pp. $.25 a copy; 10 or more sent to one ad­ These studies are printed in mimeographed dress, $.20 each. or similar form.) REPORT ON RESEARCH UNDERTAKEN IN CON­ STAFF ECONOMIC STUDIES NECTION WITH A SYSTEM STUDY. 1968. 47 Studies and papers on economic and financial sub­ pp. $.25 a copy; 10 or more sent to one jects that are of general interest in the field of address, $.20 each. economic research. Limited supply of the following papers relating to Summaries only printed in the Bulletin. (Limited supply of mimeographed copies of full the Discount Study, in mimeographed or similar text available upon request for single copies.) form, available upon request for single copies: MEASURES OF INDUSTRIAL PRODUCTION AND EVOLUTION OF THE ROLE AND FUNCTIONING OF THE DISCOUNT MECHANISM. 1968. 65 pp. FINAL DEMAND, by Clayton Gehman and Cor­ nelia Motheral. Jan. 1967. 57 pp. A STUDY OF THE MARKET FOR FEDERAL FUNDS. THE LABOR MARKET AND POTENTIAL OUTPUT OF 1968. 47 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL: A PRELIMINARY REPORT, by A. J. Telia THE SECONDARY MARKET FOR NEGOTIABLE and P. A. Tinsley. Aug. 1968. 26 pp. CERTIFICATES OF DEPOSIT. 1968. 89 pp. THE REGULATION OF SHORT-TERM CAPITAL MOVE­ THE DISCOUNT MECHANISM IN LEADING IN­ MENTS: WESTERN EUROPEAN TECHNIQUES IN DUSTRIAL COUNTRIES SINCE WORLD WAR II. THE 1960’s, by Rodney H. Mills, Jr. Sept. 1968. 1968. 216 pp. 35 pp. RESERVE ADJUSTMENTS OF THE EIGHT MAJOR A TECHNIQUE FOR FORECASTING DEFENSE EX­ NEW YORK CITY BANKS DURING 1966. 1968. PENDITURES, by Harvey Galper and Edward 29 pp. Gramlich. Oct. 1968. 13 pp. DISCOUNT POLICY AND OPEN MARKET OPERA­ CHANGES IN BANK OWNERSHIP: THE IMPACT ON TIONS. 1968. 23 pp. OPERATING PERFORMANCE, by Paul F. Jessup, Apr. 1969. 35 pp. THE REDESIGNED DISCOUNT MECHANISM AND CHARACTERISTICS OF MERGING BANKS, by David THE MONEY MARKET. 1968. 29 pp. L. Smith. July 1969, 30 pp. SUMMARY OF THE ISSUES RAISED AT THE ACA­ OPTIMAL FACTOR ADJUSTMENT PATHS: A GENER­ DEMIC SEMINAR ON DISCOUNTING. 1968. ALIZATION OF "STOCK ADJUSTMENT" DECISION 16 pp. RULES, by P. A. Tinsley. July 1969. 14 pp. A REVIEW OF RECENT ACADEMIC LITERATURE Printed in full in the Bulletin. ON THE DISCOUNT MECHANISM. 1968. 40 pp. (Reprints available as shown in following list.) Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 101 REPRINTS TOWARD UNDERSTANDING OF THE WHOLE DE­ VELOPING ECONOMIC SITUATION, Staff Eco­ (From Federal Reserve Bulletin unless preceded nomic Study by Frank R. Garfield. Nov. 1966. by an asterisk.) 14 pp. ADJUSTMENT FOR SEASONAL VARIATION. Descrip­ A REVISED INDEX OF MANUFACTURING CAPACITY, tion of method used by Board in adjusting eco­ Staff Economic Study by Frank de Leeuw with nomic data for seasonal variations. June 1941. Frank E. Hopkins and Michael D. Sherman. 11 PP- Nov. 1966. 11 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. THE ROLE OF FINANCIAL INTERMEDIARIES IN Feb. 1958. 12 pp. U.S. CAPITAL MARKETS, Staff Economic Study LIQUIDITY AND PUBLIC POLICY, Staff Paper by by Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. 14 pp. ' Stephen H. Axilrod. Oct. 1961. 17 pp. REVISED SERIES ON COMMERCIAL AND INDUS­ SEASONALLY ADJUSTED SERIES FOR BANK TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. CREDIT. July 1962. 6 pp. INTEREST RATES AND MONETARY POLICY, Staff AUTO LOAN CHARACTERISTICS AT MAJOR SALES Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. FINANCE COMPANIES. Feb. 1967. 5 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. RECENT CHANGES IN LIQUIDITY, Staff Paper by 1967. 26 pp. Daniel H. Brill. June 1963, 10 pp. MONETARY POLICY AND ECONOMIC ACTIVITY: A MEASURES OF MEMBER BANK RESERVES. July POSTWAR REVIEW. May 1967. 22 pp. 1963. 14 pp. MONETARY POLICY AND THE RESIDENTIAL MORT­ MEASURING AND ANALYZING ECONOMIC GROWTH, GAGE MARKET. May 1967. 13 pp. Staff Paper by Clayton Gehman. Aug. 1963. 14 PP- BANK FINANCING OF AGRICULTURE. June 1967. 23 pp. CHANGES IN BANKING STRUCTURE, 1953-62. EVIDENCE ON CONCENTRATION IN BANKING Sept. 1963. 8 pp. MARKETS AND INTEREST RATES, Staff Eco­ ECONOMIC CHANGE AND ECONOMIC ANALYSIS, nomic Study by Almarin Phillips. June 1967. Staff Paper by Frank R. Garfield. Sept. 1963. H PP- 17 PP- NEW BENCHMARK PRODUCTION MEASURES, 1958 THE OPEN MARKET POLICY PROCESS. Oct 1963. AND 1963. June 1967. 4 pp. 11 PP- REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. YIELD DIFFERENTIALS IN TREASURY BILLS, 1959­ 64, Staff Paper by Samuel I. Katz. Oct. 1964. THE PUBLIC INFORMATION ACT—ITS EFFECT ON 20 pp. MEMBER BANKS. July 1967. 6 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN­ INTEREST COST EFFECTS OF COMMERCIAL BANK OVER SERIES. Mar. 1965. 4 pp. UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967, 16 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff THE FEDERAL RESERVE-MIT ECONOMETRIC Economic Study by Lyle E. Gramley and MODEL, Staff Economic Study by Frank de Samuel B. Chase, Jr. Oct. 1965. 25 pp. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. ING WORLD, Staff Paper by Frank R. Garfield. 1968. 7 pp. Nov. 1965. 15 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN RESEARCH ON BANKING STRUCTURE AND PER­ 1960-67. Apr. 1968. 23 pp. FORMANCE, Staff Economic Study by Tynan Smith. Apr. 1966, 11 pp. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic REVISION OF MONEY SUPPLY SERIES. June 1968. Study by James Pierce. Aug. 1966. 9 pp. 6 PP- Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 MONETARY RESTRAINT AND BORROWING AND HOUSING PRODUCTION AND FINANCE. Mar. 1969. CAPITAL SPENDING BY LARGE STATE AND 7 PP- LOCAL GOVERNMENTS IN 1966. July 1968. BANKING AND MONETARY STATISTICS, 1968. 30 pp. Selected series of banking and monetary statis­ RECENT CHANGES IN STRUCTURE OF TIME AND tics for 1968 only. Feb. and Mar. 1969. 16 pp. SAVINGS DEPOSITS. July 1968. 20 pp. BALANCE OF PAYMENTS PROGRAM: REVISED REVISED SERIES ON BANK CREDIT. Aug. 1968. GUIDELINES FOR BANKS AND NONBANK FI­ 4 PP- NANCIAL INSTITUTIONS. Apr. 1969. 9 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. RECENT TRENDS IN THE U.S. BALANCE OF PAY­ 1968. 18 pp. MENTS. Apr. 1969. 18 pp. HOW DOES MONETARY POLICY AFFECT THE QUARTERLY SURVEY OF CHANGES IN BANK LEND­ ECONOMY? Staff Economic Study by Maurice ING PRACTICES. Apr. 1969. 5 pp. Mann. Oct. 1968. 12 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, BUSINESS FINANCING BY BUSINESS FINANCE OCTOBER 1968-JANUARY 1969. May 1969. COMPANIES. Oct. 1968. 13 pp. 15 pp. ECONOMIC UPSWING IN WESTERN EUROPE. Nov. OUR PROBLEM OF INFLATION. June 1969. 15 pp. 1968. 17 pp. MANUFACTURING CAPACITY: A COMPARISON OF THE CHANNELS OF MONETARY POLICY, Staff Eco­ TWO SOURCES OF INFORMATION, Staff Eco­ nomic Study by Frank de Leeuw and Edward nomic Study by Jared J. Enzler. Nov. 1968. Gramlich. June 1969. 20 pp. 5 PP- CHANGES IN TIME AND SAVINGS DEPOSITS. MONETARY RESTRAINT, BORROWING, AND CAP­ JANUARY-APRIL 1969. July 1969. 10 pp. ITAL SPENDING BY SMALL LOCAL GOVERN­ FINANCIAL DEVELOPMENTS IN THE SECOND MENTS AND STATE COLLEGES IN 1966. Dec. QUARTER OF 1969. Aug. 1969. 9 pp. 1968. 30 pp. REVISION OF CONSUMER CREDIT STATISTICS. REVISION OF WEEKLY SERIES FOR COMMERCIAL Dec. 1968. 21 pp. BANKS. Aug. 1969. 5 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, TREASURY AND FEDERAL RESERVE FOREIGN EX­ APRIL-OCTOBER 1968. Mar. 1969. 21 pp. CHANGE OPERATIONS. Sept. 1969. 22 pp. Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 103 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers’, 14, 31, 37 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment of Arbitrage, 91 personal loans, 23 Assets and liabilities (See also Foreigners, claims on, Adjusted, and currency, 18 and liabilities to): Banks, by classes, 11, 19, 25, 29, 37 Banks, by classes, 19, 24, 26, 37 Federal Reserve Banks, 12, 86 Banks and the monetary system, 18 Postal savings, 18 Corporate, current, 49 Subject to reserve requirements, 17 Federal Reserve Banks, 12 Discount rates, 9, 90 Automobiles: Discounts and advances by Reserve Banks, 4, 12, 15 Consumer instalment credit, 54, 55, 56 Dividends, corporate, 48, 49 Production index, 58, 59 Dollar assets, foreign, 75, 81 Bankers’ balances, 25, 28 (See also Foreign liabilities and claims) Earnings and hours, manufacturing industries, 65 Banks and the monetary system, 18 Employment, 62, 64, 65 Banks for cooperatives, 39 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Farm mortgage Ioans, 50, 51 Yields and prices, 34, 35 Federal finance: Branch banks, liabilities of U.S. banks to their foreign Cash transactions, 40 branches, 30, 86 Receipts and expenditures, 41 Brokerage balances, 85 Treasury operating balance, 40 Business expenditures on new plant and equipment, 49 Federal funds, 8, 24, 26, 30, 33 Business indexes, 62 Federal home loan banks, 39, 51 Business loans (See Commercial and industrial loans) Federal Housing Administration, 50, 51, 52, 53 Federal intermediate credit banks, 39 Capacity utilization, 62 Federal land banks, 39 Capital accounts: Federal National Mortgage Assn., 39, 53 Banks, by classes, 19, 25, 30 Federal Reserve Banks: Federal Reserve Banks, 12 Condition statement, 12 Central banks, 90, 92 U.S. Govt, securities held, 4, 12, 15, 42, 43 Certificates of deposit, 30 Federal Reserve credit, 4, 12, 15 Coins, circulation, 16 Federal Reserve notes, 12, 16 Commercial and industrial loans: Federally sponsored credit agencies, 39 Commercial banks, 24 Finance company paper, 33, 37 Weekly reporting banks, 26, 31 Financial institutions, loans to, 24, 26 Commercial banks: Float, 4 Assets and liabilities, 19, 24, 26 Flow of funds, 70 Consumer Ioans held, by type, 55 Foreign: Deposits at, for payment of personal loans, 23 Currency operations, 12, 14, 75, 81 Number, by classes, 19 Deposits in U.S. banks, 4, 12, 18, 25, 29, 86 Real estate mortgages held, by type, 50 Exchange rates, 89 Commercial paper, 33, 37 Trade, 73 Condition statements (See Assets and liabilities) Foreigners: Construction, 62, 63 Claims on, 82, 83, 86, 87, 88 Consumer credit: Liabilities to, 30, 76, 77, 79, 80, 81, 86, 87, 88 Instalment credit, 54, 55, 56, 57 Noninstalment credit, by holder, 55 Consumer price indexes, 62, 66 Gold: Consumption expenditures, 68, 69 Certificates, 12, 16 Corporations: Earmarked, 86 Sales, profits, taxes, and dividends, 48, 49 Net purchases by U.S., 74 Security issues, 46, 47 Production, 93 Security yields and prices, 34, 35 Reserves of central banks and govts., 92 Cost of living (See Consumer price indexes) Stock, 4, 18, 75 Currency and coin, 4, 10, 25 Government National Mortgage Association, 53 Currency in circulation, 4, 16, 17 Gross national product, 68, 69 Customer credit, stock market, 36, 94 Hours and earnings, manufacturing industries, 65 Housing permits, 62 Debits to deposit accounts, 15 Housing starts, 63 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, 29 Subject to reserve requirements, 17 Turnover, 15 )xedni siht ni dettimo si ”A“ xiferp eht hguohtla 49-A hguorht 4-A segap ot era secnerefeR( Income, national and personal, 68, 69 Industrial production index, 58, 62 Instalment loans, 54, 55, 56, 57 Insurance companies, 38, 42, 43, 51 Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

A 104 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1969 )xedni siht ui dettimo si ”A“ xiferp eht hguohtla 49-A hguorht 4-A segap ot era secnerefeR( Insured commercial banks, 21, 23, 24 Real estate loans: Interbank deposits, 11, 19,25 Banks, by classes, 24, 27, 37, 50 Interest rates: Delinquency rates on home mortgages, 52 Business loans by banks, 32 Mortgage yields, 53 Federal Reserve Bank discount rates, 9 Type of holder and property mortgaged, 50, 51, Foreign countries, 90, 91 52, 53 Money market rates, 33, 91 Reserve position, basic, member banks, 8 Mortgage yields, 53 Reserve requirements, member banks, 10 Prime rate, commercial banks, 32 Reserves: Time deposits, maximum rates, 11 Central banks and govts., 92 Yields, bond and stock, 34 Commercial banks, 25, 28, 30 International capital transactions of the U.S., 76-88 Federal Reserve Banks, 12 International institutions, 74, 75, 90, 92 Member banks, 4, 6, 11, 17, 25 Inventories, 68 Residential mortgage Ioans, 35, 50, 51, 52 Investment companies, issues and assets, 47 Retail credit, 54 Investments (See also specific types of investments): Retail sales, 62 Banks, by classes, 19, 24, 28, 37 Commercial banks, 23 Sales finance companies, loans, 54, 55, 57 Federal Reserve Banks, 12, 15 Saving: Life insurance companies, 38 Flow of funds series, 70 Savings and loan assns., 38 National income series, 69 Savings and loan assns., 38, 43, 51 Savings deposits (See Time deposits) Labor force, 64 Savings institutions, principal assets, 37, 38 Loans (See also specific types of loans): Securities (See also U.S. Govt, securities): Banks, by classes, 19, 24, 26, 37 Federally sponsored agencies, 39 Commercial banks, 19, 23, 24, 26, 31 International transactions, 84, 85 Federal Reserve Banks, 4, 12, 15 New issues, 45, 46, 47 Insurance companies, 38, 51 Silver coin and silver certificates, 16 Insured or guaranteed by U.S., 50, 51, 52, 53 State and local govts.: Savings and loan assns., 38, 51 Deposits, 25, 29 Holdings of U.S. Govt, securities, 42, 43 New security issues, 45, 46 Ownership of securities of, 24, 28, 37, 38 Manufacturers: Yields and prices of securities, 34, 35 Capacity utilization, 62 State member banks, 21, 23 Production index, 59, 62 Stock market credit, 36, 94 Margin requirements, 10 Stocks: Member banks: New issues, 46, 47 Assets and liabilities, by classes, 19, 24 Yields and prices, 34, 35 Borrowings at Reserve Banks, 6, 12 Deposits, by classes, 11 Number, by classes, 19 Tax receipts, Federal, 41 Reserve position, basic, 8 Time deposits, 11, 17, 18, 19, 25, 29 Reserve requirements, 10 Treasury cash, Treasury currency, 4, 16, 18 Reserves and related items, 4, 17 Treasury deposits, 5, 12, 40 Mining, production index, 59, 62 Treasury operating balance, 40 Mobile home shipments, 63 Money rates (See Interest rates) Unemployment, 64 Money supply and related data, 17 U.S. balance of payments, 72 Mortgages (See Real estate loans and residential mort­ U.S. Govt, balances: gage loans) Commercial bank holdings, 25, 29 Mutual funds (See Investment companies) Consolidated condition statement, 18 Mutual savings banks, 18, 19, 22, 29, 37, 42, 43, 50 Member bank holdings, 17 Treasury deposits at Federal Reserve Banks, 4, 12, 40 U.S. Govt, securities: National banks, 21, 23 Bank holdings, 18, 19, 24, 27, 37, 42, 43 National income, 68, 69 Dealer transactions, positions, and financing, 44 National security expenditures, 41, 68 Federal Reserve Bank holdings, 4, 12, 15, 42, 43 Nonmember banks, 21, 23, 24, 25 Foreign and international holdings, 12, 81, 84, 86 International transactions, 81, 84 New issues, gross proceeds, 46 Open market transactions, 14 Open market transactions, 14 Outstanding, by type of security, 42, 43, 45 Ownership of, 42, 43 Yields and prices, 34, 35, 91 Payrolls, manufacturing, index, 62 United States notes, 16 Personal income, 69 Utilities, production index, 59, 62 Postal Savings System, 18 Prices: Veterans Administration, 50, 51, 52, 53 Consumer and wholesale commodity, 62, 66 Security, 35 Prime rate, commercial banks, 32 Weekly reporting banks, 26 Production, 58, 62 Profits, corporate, 48, 49 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 ☆ (O THE FEDERAL"RESERVE SYSTEM q ) * Legend ■—— Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories O Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis