Federal Reserve Bulletin, 1970-01

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

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

FEDERAL RESERVE BULLETIN NUMBER 1 • VOLUME 56 • JANUARY 1970 CONTENTS 1 1969—A Year of Moderating Growth 11 Balance of Payments—Revised Guidelines for Banks and Nonbank Financial Institutions 23 Record of Policy Actions of the Federal Open Market Committee 35 Law Department 96 Announcements 111 National Summary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 4 U.S. Statistics A 70 International Statistics A 94 Board of Governors and Staff A 95 Open Market Committee and Staff; Federal Advisory Council A 96 Federal Reserve Banks and Branches A 97 Federal Reserve Board Publications A 101 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony J. Charles Partee COMMITTEE Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1969—A Year of Moderating Growth EXPANSION in real economic activity moderated and finally halted during 1969 as monetary and fiscal restraints operated to curb demand. Aggregate expenditures continued to grow at an undiminished rate during the first three quarters, but an increasingly large share of the gains in gross national product represented price rises. Every major sector except business fixed investment showed less real strength as the year progressed. By the year-end the pace of increase in current-dollar GNP also weakened and real growth had ceased. Demands on industrial capacity and manpower resources began to subside, but there was little indication of any easing of the intense wage and price pressures that had built up in recent years. At the start of the year activity was advancing rapidly and the hoped-for response to fiscal restraint introduced by the tax surcharge in mid-1968 proved to be limited. But indications of the effects of monetary and fiscal restraint became apparent by spring when residential construction activity turned down and CHANGES IN GNP Federal purchases of goods and services declined for the second CHANGE, BILLIONS OF DOLLARS WRRENT quarter in a row. In addition, consumer spending grew at a more moderate pace. As a result, by the second quarter the growth of final sales was substantially slower than in the first, and employment gains had moderated somewhat. Despite a large increase in disposable income, growth of consumer demand slowed further after midyear and the saving rate rose sharply. Restrictive monetary policy was reflected in the continued decline of housing activity and in the Dept, of Commerce quarterly data sharp curtailment of growth of State and local government seasonally adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN n JANUARY 1970 1 I PRODUCTION, CAPACITY USE, and PROFITS decline late in year, but PRICES continue to rise 1957-59=100 PER CENT BILLIONS OF DOLLARS 1957-59=100 180 90 105 120 INDUSTRIAL PRODUCTION CAPACITY USE CORPORATE PROFITS INDUSTRIAL COMMODITY sPRICES 170 85 95 ,11 I 160 85 100 1968 1969 1968 1969 1966 1969 1968 1969 "Industrial production" and "Capacity use," FRB data; "Indus- regrouping—Q4 estimated; "Corporate profits," Dept, of Comtrial commodity prices," Bureau of Labor Statistics data, FRB merce data—Q4 estimated. spending. With demands weakening for both consumer durable goods and defense products, industrial output leveled off and then started to edge down, and corporate profits declined. But because there was a lag between the weakening in demand and production adjustments, inventory accumulation rose. By the fourth quarter there were further reductions in industrial output—in part because of strike activity—and inventory growth slowed. Manufacturing employment declined and the workweek was cut, resulting in appreciably smaller gains in personal income. However, growth in business capital expenditures continued strong, and businessmen were planning further large increases for 1970. CONSUMER INCOME Consumer outlays continued to be relatively large in the first half AND OUTLAYS of 1969. But growing pessimism—associated with rising prices, slowing income gains, and concern with future deterioration in income and employment opportunities—became an increasingly important factor in limiting consumer spending in the latter half of the year. Demand was relatively strong early in the year in part due to continued large employment and wage gains. Although increases in after-tax income slowed temporarily in the first quarter when a large share of the retroactive income-tax-surcharge payments were made, a sharp drop in the saving rate from 6.0 per cent in the second half of 1968 to 5.3 per cent helped sustain consumer expenditures. Spending slowed slightly in the second quarter but sales of furniture and appliances remained particularly buoyant, reflecting in part the steady gains in residential construction in late 1968 and early 1969. Unit sales of new autos were also at a very high level although off somewhat from the latter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A YEAR OF MODERATING GROWTH half of 1968. But purchases of nondurable goods began to show signs of slackening growth, and the over-all increase in consumer purchases was somewhat smaller than in the latter half of 1968. A marked decline in confidence after midyear was indicated by the University of Michigan index of consumer sentiment, which is designed to measure attitudes and expectations of consumers about prospective changes in their incomes, about mar- 2 DISPOSABLE INCOME grows but CHANGE, BILLIONS OF DOLLARS DISPOSABLE INCOME 20 gains in consumer SPENDING slow and BCONSUMPTION EXPENDITURES ^. SAVING RATE rises PER CENT BpERSONAL SAVING 1968 1969 Dept, of Commerce data seasonally adjusted at annual rates. ket conditions for durable goods, and also about the future course of business. Following an earlier more moderate decline, this index between May and August showed the sharpest drop for a single quarter since mid-1966. By November the index had fallen even further, to a level close to that reached prior to the 1957-58 recession. Continued rapid price increases apparently were an important element in this deterioration of consumer sentiment. The consumer price index rose sharply throughout the year and the rate of increase in food prices accelerated after midyear. Such rapid price increases completely offset income gains for many Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 FEDERAL RESERVE BULLETIN n JANUARY 1970 employees and, in fact, average weekly earnings in manufacturing adjusted for increases in prices declined slightly during the year. The weakness in retail sales in the second half was typical of a situation of deteriorating confidence and tight credit. Purchases of durable goods fell sharply as furniture and appliance sales slumped—partly in response to the drop in homebuilding activity—and also as unit auto sales declined further to a very low rate by year-end. Purchases of nondurable goods increased more slowly than in the first half, but expenditures for services maintained about their former pace. In real terms, retail sales in June dropped below the level of a year earlier and remained in this depressed state through the year-end. This slowdown in consumer expenditures was reflected in a sizable build-up of retailers' stocks, and inventory/sales ratios rose to advanced levels at producers of automobiles and of household appliances, furniture, and apparel, and at retail outlets generally. In the autumn growth in both employment and income slowed appreciably as production was cut back, thus further weakening the basis for retail sales growth. GOVERNMENT A sharp reversal in 1969 of the Federal Government's fiscal SPENDING operations from moderate deficit to sizable surplus was one of the important factors slowing over-all economic activity. Expenditure and revenue-generating policies in 1969 resulted in a surplus of close to $10 billion on a national income account basis, in contrast with a deficit in 1968 of $5.2 billion. This shift to surplus largely reflected the surcharge and reductions in Federal purchases of goods and services in the first half of 1969—mainly in defense. Federal purchases did rise in the third quarter, when a Federal pay raise became effective, but resumed their earlier downward trend in the fourth quarter. In total, Federal purchases of goods and services in the final quarter of the year were only $800 million higher than at the end of 1968. This compares with an increase of $8.4 billion from the end of 1967 to the end of 1968—a period that also included a pay raise. In addition to purchases, the other important areas of Federal expenditures—grants-in-aid, interest on the national debt, and transfer payments, largely social security—expanded by $8 billion, about $3 billion less than in the previous year. As a result, total outlays by the Federal Government rose by $8.8 billion during 1969, about $10 billion less than the 1968 increase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A YEAR OF MODERATING GROWTH Federal receipts, as measured in the national income accounts, rose sharply in the first half, when retroactive payments were received on personal tax liabilities for calendar-year 1968 incomes. Since expenditures were increasing more slowly during this period, a substantial surplus was attained for the first time in more than 2 years. There was little further growth in receipts after midyear as the retroactive payments were completed and as corporate profits weakened and gains in personal incomes slowed. With Federal expenditures increasing, the surplus fell to between $7 billion and $8 billion, annual rate, compared with $12 billion in the first half. But this was still a much more restrictive fiscal posture than in the second half of 1968 when there was a deficit of $ 1.5 billion. 3 I Federal RECEIPTS exceed EXPENDITURES BILLIONS OF DOLLARS 200 1968 1969 Dept, of Commerce (Federal sector, NIA) data seasonally adjusted at annual rate. Q4 estimated by Federal Reserve. Expansion in State and local government spending also slowed somewhat—largely in the latter half of 1969—from its pace in recent years, although Federal grants-in-aid programs were increasing. This slowdown in growth of outlays resulted in large part from financial market developments. Tight money markets and high interest rates forced many States and municipalities, which had reduced their holdings of liquid assets, to trim capital spending either because market rates of interest exceeded the legal limits that such governments are permitted to pay on new Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BULLETIN o JANUARY 1970 bond issues or because they were simply unwilling to borrow at the prevailing rates. RESIDENTIAL Monetary restraint was most evident in reduced residential con- CONSTRUCTION struction activity during the year, although the sharp rise in home prices probably also curtailed expenditures. As interest rates rose, there were substantial reductions in flows of savings funds to banks and other savings institutions. Other usual private sources of mortgage funds also tightened up markedly. This drying up of private mortgage funds was partially offset by stepped-up purchases of mortgages by the Federal National Mortgage Association and a liberal Federal Home Loan Board lending policy, but housing activity declined steadily as the year progressed. Usury ceilings on mortgage interest rates apparently reduced activity, particularly in Northeastern States. Building of multifamily structures, which was curtailed in the latter part of PRIVATE HOUSINGSTARTS the year, also may have been affected by uncertainties concern- MILLIONS OF UNITS 2.0 ing changes in depreciation practices proposed in the Tax Reform Act, which was not enacted until December. ^^~~~«^ 1.5 Private housing starts declined during 1969 from 1.7 million 1 1.0 19ES 1969 units in the first quarter to 1.3 million in the fourth and con- Bureau of Census data seasonally adjusted at annual rates. struction outlays were trimmed by almost $2 billion, annual rate, over this period. Single-family starts dropped early in the year, but starts of multifamily units remained relatively strong until the fall—reflecting investors' ability to compete more effectively for financing. Although vacancy rates were at their lowest levels in recent years—an indication that there was an over-all shortage of housing relative to demand—building permits and starts were still declining as the year came to a close, foreshadowing further reductions in housing starts and in expenditures for residential construction. In contrast to other sectors, business capital spending main- BUSINESS FIXED INVESTMENT tained a strong upward momentum in 1969. At the end of 1968, businessmen, who had held down spending earlier in the year, sharply accelerated their outlays for new plant and equipment and were planning further large increases for the first half of 1969. In each of the first two quarters of 1969, expenditures fell somewhat short of earlier anticipations—apparently because of delays in both construction and deliveries—but the growth of business fixed investment continued at a level only slightly below the rate at the end of 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A YEAR OF MODERATING GROWTH PLANT and EQUIPMENT spending rebounds in '69 - further gains expected in '70 1964 196S 196B 1967 1968 1969 1970 30 CHANGE, PER CENT Dept, of Commerce-SEC annual data; 1969 preliminary, 1970 anticipated. Changes from prior year. Resource limitations apparently became less of a problem in the second half of 1969, and expenditures in the third quarter about matched previously announced plans. The rate of spending growth dipped in the last quarter, and the increase for 1969 as a whole is now estimated to have been 11 per cent rather than the 14 per cent anticipated in February. Spending in the manufacturing sector rose by 12 per cent in 1969 in sharp contrast to the 1 per cent decline in 1968. The only major manufacturing industry that did not report a substantial increase over 1968 was primary iron and steel, where expenditures were off slightly as needs for additional capacity declined. In the nonmanufacturing sector, which showed an increase of 10 per cent in 1969 as opposed to 8 per cent in 1968, the leading gains were by communications, mining, and public utilities firms; only nonrailroad transportation showed a decline as civilian aircraft orders fell from the exceptionally high levels of recent years. The substantial increase in outlays in 1969 was somewhat surprising in view of the rapid rate of capital expansion between 1964 and 1966, the relatively low operating rates estimated in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 FEDERAL RESERVE BULLETIN a JANUARY 1970 manufacturing since 1967, the high cost and reduced availability of investment funds, and the announced intention of the administration to seek elimination of the investment tax credit retroactively to mid-April. In addition, corporations were facing a weaker profits picture, especially after midyear. But in addition to anticipated strong demands, concern over rising prices for capital goods and rapidly increasing unit labor costs undoubtedly affected the thinking of businessmen. About half of the 1969 capital spending was for modernization and cost reduction rather than for expansion of capacity. In the utilities and communications industries, however, where in many cases operating rates were pressing available capacity, almost all spending was for expansion. As the year came to an end there appeared to be no signifi- NEW ORDERS for MACHINERY and EQUIPMENT cant abatement in business plans to increase plant and equip- .LIONS OF DOLLARS ment outlays. A further rise of 10 per cent, mainly in the first half, was projected for 1970 in the Commerce-SEC survey of anticipated plant and equipment spending. Most of the strength for 1970 was reported in the nonmanufacturing sector where utilities, communications, and commercial firms all reported larger increases than in 1969. Smaller rates of increase, only about equal to the anticipated rise in prices, were reported by 1968 1969 most manufacturing industries. If current anticipations are re- Bureau of Census data seasonally adjusted. Q4 estimated by Federal Re- alized, business fixed investment outlays will continue to be a serve. significant source of aggregate demand in the first half of 1970. But the deterioration of the profits picture and weakening of sales have raised some question about the possible realization of current plans. In addition new orders for machinery and equipment, which tend to lead plant and equipment expenditures by about 6 to 9 months, although erratic, have recently begun to show signs of weakening. INVENTORY CHANGE Inventories were accumulated at a relatively low rate in the first half of 1969 as final sales remained strong. However, additions to inventory were greater in manufacturing and at the retail level in the third quarter when sales of consumer goods turned sluggish. This increase in inventory build-up was partly responsible for the relatively large rise in GNP in the third quarter. Durable goods inventory/sales ratios rose above late 1966 levels in the fourth quarter of 1969. But by the end of the quarter, stock-building of consumer durable goods had slowed as production of autos and some other durable goods had been cut and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A YEAR OF MODERATING GROWTH strikes had reduced inventory growth in some industries. More moderate accumulation of inventories, combined with the slowing in final sales, sharply reduced the fourth quarter gain in current-dollar GNP. EXPORTS AND The surplus of exports of goods and services over imports, which IMPORTS was at its smallest in many years in 1968, declined even further in 1969. The merchandise balance alone, which was a low $600 million in 1968, remained at about that level in calendar year 1969 but by the second half of the year had recovered to about $1.3 billion, annual rate, as exports continued to expand and the growth of imports moderated somewhat. Net exports of services, however, apparently were somewhat smaller in 1969 than in 1968—reflecting mainly larger interest payments to foreign holders of U.S. assets resulting from higher interest rates and larger holdings. As growth in economic activity slowed, gains in nonfarm payroll RESOURCE UTILIZATION AND PRICES employment moderated progressively and the average workweek of production workers edged down. But adjustments of employment and working hours to the reduced rate of growth of output were relatively modest until late in the year; consequently, output per manhour in the private nonfarm economy is estimated to have declined during the first three quarters of the year and apparently picked up only slightly in the fourth quarter. At the same time, wages continued to increase at a rapid pace, reflecting tight labor markets and the pressure of rising living costs. The increase in compensation per manhour was slightly less than in 1968 but only because of the relatively small number of new collective bargaining agreements that were signed in 1969. With compensation increasing at a rapid pace and little growth in productivity, unit labor costs in the private nonfarm economy in 1969 rose by more than 6 per cent—the fastest annual pace since 1956. In the manufacturing sector the performance of productivity was somewhat better. Output per manhour there rose by about 2.5 per cent—still well below the long-term average—and the rise in unit labor costs was 4 per (ANUFACTUHING cent. UNEMPLOYMENT RATE Reflecting demand and cost pressures, the wholesale price index rose by about 4.0 per cent in 1969—the largest yearly increase since 1951. Especially sharp increases occurred in BLS quarterly data seasonally ad- prices of crude materials, processed foods and feeds, consumers' justed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 FEDERAL RESERVE BULLETIN a JANUARY 1970 UNIT LABOR COSTS rise as gains in COMPENSATION outpace PRODUCTIVITY 1967=1 190 1967 1968 1969 BLS quarterly data seasonally adjusted. Q4 estimated by Federal Reserve. nondurable goods, and in industrial prices in the latter part of the year. The consumer price index rose by about 6 per cent in 1969, the largest advance in almost 20 years. There were larger-thanaverage increases in prices of services, especially for such items as medical care. Food prices also advanced very sharply, with exceptionally rapid growth in prices of meat and eggs. Nonfood commodities rose relatively less than the total. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BALANCE OF PAYMENTS PROGRAM Revised Guidelines For Banks and Nonbank Financial Institutions The Board of Governors of the Federal Re- available, the 165 reporting banks were serve System announced on December 17, approximately $1 billion below their ceil- 1969, a revision in guidelines that U.S. ings. banks and other financial institutions have The guidelines for nonbank financial inbeen asked to follow in order to limit in- stitutions, such as insurance companies and creases in loans and investments abroad. pension funds, continue to provide for a The revised guidelines continue the pro- single ceiling. However, an institution may gram of voluntary restraints in effect since exceed its ceiling moderately if the excess 1965. However, in keeping with the Gov- reflects new export credits which could not ernment's efforts to help stimulate U.S. be accommodated under its ceiling. In addiexports, the guidelines are changed to give tion, an institution that has had either a low greater and more explicit recognition to the ceiling, or none at all, may now hold cerestablished priority for export financing. tain covered foreign assets up to a total The Voluntary Foreign Credit Restraint of $500,000. Program is one of several elements in the The effective date for these changes in Government's over-all effort, which also both the bank and the nonbank provisions includes the Interest Equalization Tax and is December 1. the Foreign Direct Investment Control Pro- Governor Andrew F. Brimmer, the Board gram, to strengthen the U.S. balance of pay- member charged with administering the ments position. program, explained that the modifications Under the revised program, each bank is have two objectives. The first aim, in acto have a ceiling exclusively for loans of 1 cordance with the Government's effort to year or longer that finance U.S. goods ex- promote exports, is to direct greater attenported on or after December 1. This Ex- tion to the existing priority for export port Term-Loan Ceiling is to be separate financing, particularly for long-term export from a General Ceiling that will be available loans, within the limits of total lending for loans of any type and of any maturity. restraints. The second aim is to enhance the Under the new program, the aggregate opportunities among U.S. financial institu- General Ceiling of banks currently report- tions to compete for foreign lending busiing to the Federal Reserve Board will be ness. $10.1 billion, and the Export Term-Loan Under the revised program, a participat- Ceiling for these banks will be about $1.3 ing bank will have a General Ceiling equal billion, for a total ceiling of $11.4 billion. to its old lending ceiling that can be used Aggregate ceilings under the previous guide- for any type and maturity of foreign loans. lines were $10.1 billion. As of the end of Each participating bank will also have an October, the latest date for which data are Export Term-Loan Ceiling equal to one- 11 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 FEDERAL RESERVE BULLETIN • JANUARY 1970 half of 1 per cent of its end-of-1968 total will be used for calculating the Export Termassets that can be used for term loans to Loan Ceilings of all bgnks. finance new U.S. exports. Under the new program, banks that had The definition for these export term loans no ceilings under previous guidelines may is the same as the definition banks have qualify for lending ceilings through applicabeen using in reports to the Treasury De- tion to the Federal Reserve Bank in their partment on loans and commitments in district. These ceilings are to be used preconnection with the Interest Equalization dominantly for export financing. Tax. Essentially these are loans, for 1 year Funds of all types advanced to residents or longer and each of $250,000 or more, of Canada continue to be exempted from for U.S. exports of goods and for services the program. Canada has been exempted performed abroad by U.S. firms. Any such since the end of February 1968, when the loans granted for goods shipped, or services Canadian Government took steps to ensure performed, after November 30, 1969, will that Canadian financial institutions would be counted against a bank's Export Term- not serve as a "pass through" for U.S. funds. Loan Ceiling or, if the bank wishes, against Banks and other financial institutions are its General Ceiling. asked again to give priority to developing By setting a separate category for long- countries for loans and investments under term export loans and asking that, even the ceilings. As in the past, loans that are among short-term loans, banks continue to guaranteed or participated in by the Exportgive priority to export financing, the re- Import Bank, guaranteed by the Departvised guidelines should ensure that a greater ment of Defense, or insured by the Foreign amount—and proportion—of U.S. bank Credit Insurance Association are exempted loans to foreigners will be used to finance from the ceilings. The exemption for longthe purchase of U.S. goods and services. term investments in Japan by nonbank fi- Similarly, by providing that General Ceil- nancial institutions will not apply to investings be reduced, and Export Term-Loan ments made after 1969. Ceilings increased, by repayment of present- Governor Brimmer reported that, during ly outstanding export term loans, the guide- the first 10 months of 1969, the banks lines would preserve the lending leeway for reduced their foreign assets covered by the export financing. program by $138 million. In 1968 there Utilization of total assets of banks as a was a net inflow of $612 million, compared base for computing the new export credit with a suggested reduction of $400 million. In the third quarter of 1969, a reduction in ceiling will make the foreign credit restraint foreign assets more than offset a substantial program more equitable in its treatment of outflow that occurred in the second quarter. banks. Since 1965, the program has tended to freeze the pattern of foreign lending At the end of October 1969, the banks' among banks. The ceilings for the larger covered assets, at $9.1 billion, were almost banks have been based on the amount of $400 million below the amount of such foreign loans the banks held at the end of assets outstanding on the base date, De- 1964. The ceilings for smaller banks, how- cember 31, 1964. ever, since November 1967 have been a per- The revised guidelines are printed below. centage of their total assets. Now total assets, Copies will be made available to financial which are not directly related to the relative institutions through the Federal Reserve standings of banks in the foreign loan field, Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 13 I. General Purpose In order to help to strengthen the U.S. bal- limits of the restraints, to give priority to ance of payments, U.S. financial institutions financing U.S. exports of goods and servare asked to continue to restrain their for- ices and to meeting the credit needs of deeign loans and investments and, within the veloping countries. II. Banks A. CEILINGS ii) A bank should not at any time hold claims on foreigners that are export term 1. Banks with Ceilings under Previous Guidelines loans, as defined in section G-3, below, to A bank that had a foreign lending ceiling finance goods exported from the United under the Federal Reserve foreign credit States after November 30, 1969, or to firestraint guidelines in existence on Novem- nance services performed in foreign counber 30, 1969 (hereinafter "previous guide- tries by U.S. individuals or U.S. firms after lines") will have, under the present revised November 30, 1969, in excess of the bank's guidelines, a General Ceiling and an Export Export Term-Loan Ceiling, except such ex- Term-Loan Ceiling. The General Ceiling port term loans as the bank counts against its General Ceiling, described in section will be available for foreign claims of any A-l-a, above. type and maturity, including Export Term Loans; subject to the definitions and other conditions set forth below, the Export 2. Banks without Ceilings under Previous Guidelines Term-Loan Ceiling will be available solely A bank that has not had a foreign lending for foreign export term loans. ceiling under the previous guidelines may discuss with the Federal Reserve Bank in its a. GENERAL CEILING district the possibility of adopting a General i) The General Ceiling will be equal to Ceiling and an Export Term-Loan Ceiling. the bank's adjusted ceiling as of November In determining whether and, if so, in what 30, 1969. amount ceilings should be established, ii) A bank should not at any time hold there should be clear reason for expecting claims on foreigners in excess of its Gen- that the bank will use such ceilings preeral Ceiling, except for the claims which it dominantly for short- and long-term export reports under its separate Export Term- loans. Any General Ceiling and any Export Loan Ceiling described in section A-l-b, Term-Loan Ceiling should not, in the agbelow. gregate, exceed 1 per cent of the bank's iii) Within its General Ceiling, a bank total assets as of December 31, 1968. should give priority to credits financing exports of U.S. goods and services and to 3. Western Europe credits meeting the needs of developing a. CEILING ADJUSTMENT FOR PRIOR countries. TERM LOANS. A bank each month should reduce its General Ceiling by the dollar b. EXPORT TERM-LOAN CEILING amount of any repayments it receives on i) The Export Term-Loan Ceiling will nonexport loans to residents of developed be equal to 0.5 per cent of the bank's total countries of continental Western Europe assets as of December 31, 1968. outstanding on December 31, 1967. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 FEDERAL RESERVE BULLETIN ° JANUARY 1970 b. RESTRAINT ON NEW NONEXPORT 6. Total Assets TERM LOANS. A bank should not make For the purpose of calculating the Export new term loans to such residents, except Term-Loan Ceiling, total assets are those loans that qualify as Export Term Loans. shown in the Official Report of Condition c. SHORT-TERM CREDITS. A bank submitted to the relevant supervisory agency should hold the amount of short-term credits as of December 31, 1968. (having an original maturity of not over 1 B. EXCLUSION year) to such residents to not more than 75 per cent of the amounts of such credits 1. Canada outstanding on December 31, 1967. a. NO RESTRAINT. These guidelines are not to restrain the extension of credit to 4. Adjustment for Prior Export Term residents of Canada. Loans b. REPORTING. For the purpose of re- A bank each month should reduce its porting claims under the General Ceiling, a General Ceiling, and should increase its bank should count against its General Ceil- Export Term-Loan Ceiling, by the dollar ing claims on residents of Canada outstandamount of any repayments it receives on ing on February 29, 1968, deducting any net increase in such claims granted after export term-loans outstanding on Novemthat date and adding any net reduction in ber 30, 1969. such claims granted after that date. 5. Sales of Foreign Assets 2. Certain Guaranteed and Insured Loans a. SALES WITHOUT RECOURSE. A Loans to finance U.S. exports that are bank that sells a foreign claim that is subguaranteed or participated in by the Exject to the guideline ceilings, without report-Import Bank, or guaranteed by the course, (a) to a U.S. resident other than a Department of Defense, or are insured by financial institution participating in the the Foreign Credit Insurance Association Federal Reserve foreign credit restraint proare exempted from the General Ceiling and gram or a direct investor subject to the conthe Export Term-Loan Ceiling. trols administered by the Department of Commerce or (b) to the Export-Import C. TEMPORARY OVERAGES Bank should reduce its General Ceiling or A bank whose claims on foreigners are in its Export Term-Loan Ceiling, whichever is excess of either or both of its ceilings and relevant, by an equivalent amount. that does not show improvements will be b. SALES WITH RECOURSE. A bank invited periodically to discuss with the Fedthat sells a foreign asset, with recourse, to a eral Reserve Bank in its district the steps it U.S. resident other than a financial institu- has taken and that it proposes to take to tion participating in the Federal Reserve bring the amount of its claims under the foreign credit restraint program or to a di- ceilings. rect investor subject to the Foreign Direct Investment Program administered by the D. APPLICABILITY TO FINANCIAL INSTITU- Department of Commerce should continue TIONS to report those assets under its General 1. General Ceiling or its Export Term-Loan Ceiling, as The guidelines are applicable to all U.S. appropriate. banks (exclusive of the trust departments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 15 of commercial banks, which should follow ii) Transfer of Parent's Ceiling. To acthe guidelines for nonbank financial institu- quire or to increase ceilings, such an Edge tions in Part III, below) and to "Edge Act" Act or Agreement Corporation may receive and "Agreement" Corporations. from one or more of its parent banks a share of the ceilings of the parent or parents. 2. Edge Act and Agreement Corporations Once transferred to the corporation, the a. POLICY OF LIMITING AGGREGATE ceilings should not be transferred back to CEILINGS. It is intended that the establish- the parent or parents, except to meet unment of new Edge Act Corporations or new foreseen and overriding developments. If Agreement Corporations not result in the any such exceptional need for retransfer expansion of aggregate lending ceilings should arise, the corporation and its parent under these guidelines. or parents should consult in advance with b. ONE-BANK OWNED CORPORA- the Federal Reserve Bank in their respective TIONS. An Edge Act or Agreement Cor- districts. poration that is owned by one bank and that, under previous guidelines, had a ceil- 3. Bank Holding Companies ing separate from that of its parent bank a. REGISTERED BANK HOLDING may continue to be guided by General and COMPANIES. A registered bank holding Export Term-Loan Ceilings separate from company is to be treated as a bank for the those of its parent or may combine its forpurpose of these guidelines. eign loans and investments with the respecb. ONE-BANK HOLDING COMPANIES. tive General and Export Term-Loan Ceil- A one-bank holding company whose bank ings of its parent. The General Ceiling and subsidiary has ceilings under these guidethe Export Term-Loan Ceiling to which it lines is to be treated as a bank for the would be entitled if it did not combine purpose of these guidelines. Such a holding would be calculated as under section A-l, company, together with its bank subsidiary above, on the basis of the corporation's total and any nonbank subsidiary, should report assets and its adjusted ceiling under previous on a consolidated basis. However, the Genguidelines. An Edge Act or Agreement Coreral Ceiling and the Export Term-Loan poration that is owned by one bank and that Ceiling, respectively, are to be calculated was established after March 3, 1965, should on the basis of the ceiling of the bank subshare the General and Export Term-Loan sidiary under the previous guidelines and on Ceilings of its parent bank. the basis of the bank subsidiary's total asc. MULTIBANK OWNED CORPORAsets. Furthermore, to minimize changes TIONS. from earlier established procedures, any i) Separate Ceilings. An Edge Act or nonbank subsidiary that was reporting prior Agreement Corporation that is owned by to December 1, 1969, to the Department of more than one bank or by a registered bank Commerce under the Foreign Direct Inholding company will have a General Ceil- vestment Program or to a Federal Reserve ing and an Export Term-Loan Ceiling sep- Bank under the nonbank financial instituarate from those of its parents. The corpora- tion guidelines should not report under tion's General Ceiling and Export Term- these bank guidelines. Loan Ceilings are each to be equal, respec- c. CONSOLIDATION OF SUBSIDItively, to 100 per cent and 10 per cent of its ARIES' CEILINGS. A bank subsidiary (inadjusted ceiling as of November 30, 1969. cluding a bank, Edge Act Corporation, or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 FEDERAL RESERVE BULLETIN D JANUARY 1970 Agreement Corporation) of a registered term investment purposes, whether such inbank holding company may consolidate its vestments are payable in foreign currencies General Ceiling and Export Term-Loan or in U.S. dollars. Banks need not, how- Ceiling with the respective ceilings of one ever, reduce necessary working balances or more of the holding company's other held with foreign correspondents. bank subsidiaries that had ceilings under previous guidelines. 4. Transactions for Customers While recognizing that it must follow a 4. Foreign Branches of U.S. Banks customer's instruction, a bank should discourage customers from placing liquid funds a. The guidelines are not designed to reoutside the United States, except in Canada. strict the extension of foreign credits by A bank should not place with a customer foreign branches of U.S. banks if the funds foreign obligations that, in the absence of utilized are derived from foreign sources and do not add to the outflow of capital the guidelines, it would have acquired or from the United States. held for its own account. b. Total claims of a bank's domestic of- 5. U.S. Branches and Agencies of Foreign fices on its foreign branches (including per- Banks manent capital invested in, as well as bal- Branches and agencies of foreign banks ances due from, such branches) represent located in the United States are requested bank credit to foreigners for the purposes of to act in accordance with the spirit of these the program. guidelines. E. CONFORMITY WITH OBJECTIVES OF F. REPORTING GUIDELINES Each bank that has ceilings under these 1. Department of Commerce Program and guidelines and that on a reporting date had Nonbank Financial Institution Guidelines $500,000 or more in foreign claims should Banks should avoid making loans that file a Monthly Report on Foreign Claims would directly or indirectly enable borrow- with the Federal Reserve Bank in the Disers to use funds abroad in a manner incon- trict in which the bank is located. (Forms sistent with the Department of Commerce are available at the Federal Reserve Banks.) program or with the guidelines for nonbank financial institutions. G. DEFINITIONS 1. "Foreigners" include: individuals, 2. Substitute Loans partnerships, and corporations domiciled Banks should not extend to U.S.-resident outside the United States, irrespective of subsidiaries, or branches, of foreign com- citizenship, except their agencies or panies loans that otherwise might have been branches located within the United States; made by the banks to the foreign parent or branches, subsidiaries, and affiliates of U.S. other affiliate of the company or that nor- banks and other U.S. corporations that are mally would have been obtained abroad. located in foreign countries; and any government of a foreign country or official 3. Management of Liquid Assets agency thereof and any official international A bank should not place its own funds or regional institution created by treaty, irabroad (other than in Canada) for short- respective of location. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 17 2. "Claims on foreigners" are claims on ing U.S. exports shipped after November 30, foreigners held for a bank's own account. 1969, or services performed abroad by U.S. They include: foreign long-term securities; individuals or U.S. firms after November foreign customers' liability for acceptances 30, 1969. The loans exclude debt obligaexecuted, whether or not the acceptances tions acquired by a bank and having less are held by the reporting banks; deferred than a year of remaining term until maturity payment letters of credit described in the (regardless of original length of maturity). Treasury Department's Supplementary Re- The loans also exclude Export-Import Bank porting Instructions No. 1, Treasury For- certificates of participation in a pool of eign Exchange Reports, Banking Forms, loans. (Participations with the Exportdated May 10, 1968; participations pur- Import Bank in particular loans and loan chased in loans to foreigners; loans to finan- paper purchased from the Export-Import cial subsidiaries incorporated in the United Bank of foreign obligors are exempted under States, 50 per cent or more of which is section II-B-2, above.) It should be noted owned by foreigners; and foreign assets sold, that, in accordance with IET usage, export with recourse, to U.S. residents other than term-loans have a maturity of 1 year or financial institutions participating in the more, whereas elsewhere in these guidelines Federal Reserve credit restraint program or term loans of other types have a maturity of direct investors subject to the controls ad- more than 1 year and, conversely, short-term ministered by the Commerce Department. credits have a maturity of 1 year or less. "Claims on foreigners" exclude: contingent 4. Developing countries are all countries claims; unutilized credits; claims held for other than: Abu Dhabi, Australia, Austria, account of customers; acceptances executed the Bahamas, Bahrain, Belgium, Bermuda, by other U.S. banks; and, in the manner Canada, Denmark, France, Germany (Feddetermined in section B-l-b above, claims eral Republic), Hong Kong, Iran, Iraq, Ireon residents of Canada. land, Italy, Japan, Kuwait, Kuwait-Saudi 3. An "export term loan" is a loan of Arabia Neutral Zone, Libya, Liechtenstein, which a U.S. commercial bank would have Luxembourg, Monaco, Netherlands, New to notify the Treasury Department under Zealand, Norway, Portugal, Qatar, Repubthat Department's Interest Equalization Tax lic of South Africa, San Marino, Saudi Arareporting requirements being applied on bia, Spain, Sweden, Switzerland, and the December 1, 1969, concerning loans, or United Kingdom; and other than: Albania, commitments, to foreign obligors. In sum- Bulgaria, the People's Republic of China, mary, such loans include or exclude the Cuba, Czechoslovakia, Estonia, Hungary, following: They include credits of an orig- Communist-controlled Korea, Latvia, Lithinal maturity of 1 year or more and of an uania, Outer Mongolia, Poland (including amount of $250,000 or more to a foreign any area under its provisional administraobligor for U.S. goods exported or for U.S. tion), Rumania, Soviet Zone of Germany services performed abroad. The loans may and the Soviet sector of Berlin, Tibet, Union be made directly by a bank or may be made of Soviet Socialist Republics and the Kurile indirectly by a bank through its purchase Islands, Southern Sakhalin, and areas in of documented loan paper. For the purpose East Prussia that are under the provisional of the present guidelines, such loans that are administration of the Union of Soviet Soto be counted against the Export Term- cialist Republics, and Communist-controlled Loan Ceiling are confined to credits financ- Vietnam. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 FEDERAL RESERVE BULLETIN o JANUARY 1970 I. Nonbank Financial Institutions A. TYPES OF INSTITUTIONS COVERED ject to the guideline ceiling, institutions are asked to give first priority to credits that The group of institutions covered by the represent the bona fide financing of U.S. nonbank guidelines includes: trust compaexports, and second priority to credits to nies; trust departments of commercial developing countries. In addition, institubanks; mutual savings banks; insurance tions are requested not to increase the total companies; investment companies; finance of their investments in the developed councompanies; employee retirement and pentries of continental Western Europe beyond sion funds; college endowment funds; the amount held on December 31, 1968, charitable foundations; the U.S. branches except for new credits that are judged to be of foreign insurance companies and of other essential to the financing of U.S. exports. foreign nonbank financial corporations; and This means that reductions through amortiholding companies (other than bank holdzations, maturities, or sales may be offset by ing companies) whose domestic assets connew acquisitions in these countries. Howsist primarily of the stock of operating nonever, institutions are expected to refrain bank financial institutions. Investment from offsetting proceeds of sales to other underwriting firms, securities, brokers and Americans by new acquisitions from fordealers, and investment counseling firms also eigners. are covered with respect to foreign financial Institutions may invest in noncovered assets held for their own account and are foreign assets generally as desired. Howrequested to inform their customers of the ever, they are requested to refrain from program in those cases where it appears making any loans and investments, nonapplicable. Businesses whose principal accovered as well as covered, that appear to be tivity is the leasing of property and equipinconsistent with other aspects of the Govment, and which are not owned or conernment's balance of payments program. trolled by a financial institution, are not Among these are the following: defined as financial institutions. 1. Noncovered credits under this pro- B. CEILING AND PRIORITIES gram that substitute directly for loans that Each institution is requested to limit its commercial banks would have made in the aggregate holdings of foreign assets covered absence of that part of the program appliby the program to no more than 100 per cable to them. cent of the adjusted amount of such assets 2. Noncovered credits to developing held on December 31, 1967, except for country subsidiaries of U.S. corporations special situations discussed in K below. that would not have been permitted under Institutions generally are expected to hold the Department of Commerce program if no foreign deposits or money market instru- made by the U.S. parent directly. ' • ments (other than Canadian). However, an 3. Credits to U.S. corporate borrowers institution may maintain such minimum that would enable them to make new forworking balances abroad as are needed for eign loans and investments inconsistent with the efficient conduct of its foreign business the Department of Commerce program. " '"•'• activities. 4. Credits to U.S. subsidiaries and Among other foreign assets that are sub- branches of foreign companies that other- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 19 wise would have been made to the foreign Canada.1 Included in this category are parent, or that would substitute for funds bonds, notes, mortgages, loans, and other normally obtained from foreign sources. credits maturing more than 10 years after date of acquisition. Excluded are bonds of C. COVERED ASSETS international institutions of which the Covered foreign financial assets, subject United States is a member. to the guideline ceiling, include the follow- 5. Equity securities of foreign corporaing types of investments, except for "free tions domiciled in developed countries other delivery" items received after December 31, than Canada,1 except those acquired after 1967: September 30, 1965, in U.S. markets from 1. Liquid funds in all foreign countries American investors. The test of whether an other than Canada. This category com- equity security is covered will depend on the prises foreign bank deposits, including de- institution's obligation to pay the Interest posits in foreign branches of U.S. banks, Equalization Tax on acquisition. Exclusion and liquid money market claims on foreign from covered assets under this program norobligors, generally defined to include mar- mally will be indicated when, in acquiring ketable negotiable instruments maturing in an equity security that otherwise would be 1 year or less. covered, the purchasing institution receives a certificate of prior American ownership, 2. All other claims on non-Canadian foror brokerage confirmation thereof. eign obligors written, at date of acquisition, to mature in 10 years or less. This category D. BASE-DATE HOLDINGS includes bonds, notes, mortgages, loans, and Base-date holdings for any reporting date other credits. Excluded are bonds and notes after September 30, 1969, are defined as: of international institutions of which the United States is a member, regardless of ma- 1. Total holdings of covered foreign asturity. Excluded also are loans guaranteed sets as of the base date, which is December or participated in by the Export-Import 31, 1969, for investments in Japan of the Bank, guaranteed by the Department of De- types described in C (3), (4), and (5) fense, or insured by the Foreign Credit In- above, and December 31, 1967, for all surance Association. other covered assets; 2. Minus equity securities of companies 3. Net financial investment in foreign domiciled in developed countries (except branches, subsidiaries, and affiliates, located in developed countries other than Canada.1 Canada), that are included in (1) but had been sold to American investors prior to the Such financial investment includes payments current quarter; into equity and other capital accounts of, and net loans and advances to, any foreign 3. Plus, or minus, the difference between businesses in which the U.S. institution has sales proceeds and "carrying" value of an ownership interest of 10 per cent or more. covered equities sold prior to the current Excluded are earnings of a foreign affiliate quarter to other than American investors or if they are directly retained in the capital in other than U.S. markets. On each reportaccounts of the foreign business. ing date, "carrying" value should be the value reflected in the institution's report (on 4. Long-term credits of foreign obligors domiciled in developed countries other than 1 See Note on p. 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 FEDERAL RESERVE BULLETIN a JANUARY 1970 Form FR 392R-68) for December 31, ing amounts of loans guaranteed or par- 1967, in the case of equities held on that ticipated in by the Export-Import Bank, date, and it should be cost in the case of guaranteed by the Department of Defense, equities purchased after that date. or insured by the Foreign Credit Insurance "Adjusted" base-date holdings, to which Association. the 100 per cent ceiling applies, are equal to "base-date" holdings as denned above F. CREDITS TO CERTAIN U.S. CORPORA- TIONS adjusted for sales during the current quarter of included covered equities in accord- Any loan or investment acquired by a ance with the procedures specified in (2) nonbank financial institution after June 30, 1968, that involves the advance of funds to and (3) of the preceding paragraph. a domestic corporation which is simply a E. NONCOVERED ASSETS financing conduit (commonly known as a "Delaware sub") and which in turn will Foreign financial assets not covered by transmit the funds to a foreign business, the guidelines are still reportable on the should be reported as a foreign asset if one quarterly statistical reports to the Federal or more foreigners own a majority of the Reserve Banks. Such noncovered foreign "Delaware" corporation. The amounts of investments include the following: such foreign loans or investments should 1. All financial assets in, or claims on be classified according to the country where residents of, the Dominion of Canada. the funds are actually to be used, not ac- 2. Bonds and notes of international incording to the residence of the owners of the stitutions of which the United States is a "Delaware" corporation. member, regardless of maturity. In the event that U.S. residents hold a 3. Long-term investments in all developmajority ownership interest in the "Delaing countries, including credit instruments ware" corporation, no part of a loan or with final maturities of more than 10 years investment in such a corporation is to be at date of acquisition, direct investment in regarded as a foreign asset of the institution. subsidiaries and affiliates, and all equity securities issued by firms domiciled in these G. LEASING OF PHYSICAL GOODS countries. The foreign leasing activities of firms 4. Equity securities of firms in developed which engage primarily in the leasing of countries other than Canada that have been physical assets (e.g., computers, real propacquired in U.S. markets from American erty, ships, aircraft), and which are not investors (see Point C (5) above). Foreign owned or controlled by a U.S. financial in^ assets of types covered by the program and acquired as "free delivery" items—that is, stitution, are not reportable under the nonas new gifts or, in the case of trust com- bank program. However, such activities are panies or trust departments of commercial reportable when they are undertaken by banks, in new accounts deposited with the nonbank financial institutions. These instituinstitution—are not defined as covered as- tions should report the book value of any sets if they were acquired after December physical assets leased to foreigners on the 31, 1967. Such assets should be reported as appropriate line of the quarterly form they a memorandum item, as should outstand- file with their Federal Reserve Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REVISED GUIDELINES 21 H. INVESTMENT IN CERTAIN FOREIGN IN- covered investments of nonbank financial SURANCE VENTURES institutions may be permitted to exceed the Net investment in foreign insurance ven- guideline ceiling to the extent that the funds tures should be reported as such wherever for such investment are borrowed abroad possible. In the case of any such ventures for investment in the same country or in in which there is no segregated net invest- countries that are subject to the same or ment, the U.S. insurance company may more liberal guideline limitations. Thus, exclude from its foreign assets investments funds borrowed in the developed countries within the foreign country involved, in of continental Western Europe may be used amounts up to 110 per cent of reserves ac- to finance investments in these countries cumulated on insurance sold to residents of and elsewhere, and funds borrowed in other that country, or (if it is larger) the min- developed countries (except Canada) may imum deposit of cash or securities required be used to finance investment in covered as a condition of doing insurance business foreign assets anywhere but in the developed within that country. countries of continental Western Europe. Any institution desiring to offset foreign borrowing against foreign investment, how- I. LONG-TERM CREDITS TO DEVELOPING- COUNTRY BUSINESSES ever, should discuss its plans with the Fed- Institutions are requested to discuss with eral Reserve Bank before entering into such an arrangement. their Federal Reserve Bank in advance any future long-term loans or direct security 2. While institutions are expected to placements that would involve extensions make every reasonable effort to reduce outof credit of $500,000 or more to private standing nonexport credits in order to acbusiness borrowers located in the develop- commodate new export credits within their ing countries. guideline ceiling, such a reduction may not be feasible for some institutions. An institu- J. REPORTING REQUIREMENT tion that cannot avoid exceeding its guideline ceiling if it makes new loans to finance Each nonbank financial institution hold- U.S. exports—excluding loans that are ing, on any quarterly reporting date, covguaranteed or participated in by the Exportered assets of $500,000 or more, or total Import Bank, guaranteed by the Departforeign financial assets of $5 million or ment of Defense, or insured by the Foreign more, is requested to file a statistical report Credit Insurance Association—should nocovering its total holdings on that date with tify its Federal Reserve Bank of the prosthe Federal Reserve Bank of the Federal pective overage before making such loans. Reserve district in which its principal office is located. The reports are due within 20 3. An institution with a guideline ceiling days following the close of each calendar of less than $500,000 may hold covered quarter, and forms may be obtained by con- assets up to this amount if its investments tacting the Federal Reserve Bank. are consistent with other guideline provisions, e.g., those with respect to liquid funds and to nonexport credits to the developed K. COVERED ASSETS IN EXCESS OF CEILING countries of continental Western Europe. 1. In view of the balance of payments The institution is expected to file an initial objectives of the program, it is noted that statement of its holdings with its Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Reserve Bank and thereafter to file a state- changed by as much as $100,000 since its ment with the Bank within 20 days after previous report, even though its total holdthe end of any calendar quarter when its ings remain below the minimum reporting total holdings of covered foreign assets have levels stipulated in the guidelines. • NOTE.—Developed countries other than Canada: are the following countries: Albania, Bulgaria, the continental Western Europe—Austria, Belgium, Den- People's Republic of China, Cuba, Czechoslovakia, mark, France, Germany (Federal Republic), Italy, Estonia, Hungary, Communist-controlled Korea, Lat- Liechtenstein, Luxembourg, Monaco, Netherlands, via, Lithuania, Outer Mongolia, Poland (including Norway, Portugal, San Marino, Spain, Sweden, and any area under its provisional administration), Ru- Switzerland; other developed countries are: Abu mania, Soviet Zone of Germany and the Soviet sector Dhabi, Australia, the Bahamas, Bahrain, Bermuda, of Berlin, Tibet, Union of Soviet Socialist Republics Hong Kong, Iran, Iraq, Ireland, Japan, Kuwait, Kuwait- and the Kurile Islands, Southern Sakhalin, and areas Saudi Arabia Neutral Zone, Libya, New Zealand, Qatar, in East Prussia which are under the provisional ad- Republic of South Africa, Saudi Arabia, and the ministration of the Union of Soviet Socialist Repub- United Kingdom. Also to be considered "developed" lics, and Communist-controlled Vietnam. 22 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Committee at each meeting, in the form in which they will 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 decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was 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 during 1967 and 1968 were published in the BULLETIN beginning with the July 1967 issue and were subsequently published in the Board's Annual Reports for 1967 and 1968. Records for the meetings held in 1969 through September 9 were published in the BULLETINS for April, pages 345-52; May, pages 433-39; June, pages 508-18; July, pages 596-603; August, pages 647-54; September, pages 727-35; October, pages 823-38; November, pages 879-87; and December, pages 928-37. The record for the meeting held on October 7, 1969, follows: 23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 FEDERAL RESERVE BULLETIN o JANUARY 1970 MEETING HELD ON OCTOBER 7, 1969 1. Authority to effect transactions in System Account. According to staff estimates, expansion in real GNP continued in the third quarter at about the 2 per cent annual rate of the second quarter, as an increase in inventory investment approximately offset further slackening in growth of private final sales. Average prices, as measured by the GNP deflator, were estimated to have advanced substantially. Staff projections suggested that real GNP would grow more slowly in the fourth quarter and that it might change little in the first half of 1970. With pressures on resources expected to ease over that period, some moderation in the rate of price advance was projected. A number of monthly measures of economic activity had weakened recently. Nonfarm employment was about unchanged in September and the unemployment rate rose sharply to 4.0 from 3.5 per cent in August. Industrial production edged down in August, and tentative estimates suggested that it changed little or declined slightly in September. It appeared from weekly data for most of September that retail sales in that month were about the same as in August and that, after adjustment for price increases, such sales remained below the level of a year earlier. New orders at manufacturers of durable goods declined appreciably in August, and housing starts fell for the seventh consecutive month. Prices of a large number of industrial commodities increased from mid-August to mid-September and the average advanced substantially further. The over-all wholesale price index rose only slightly, however, as a result of another decline in prices of farm products and foods. In August the consumer price index again increased considerably. The staff projections of GNP for the current and the next two quarters were based on the assumptions that the income tax surcharge would be continued at 5 per cent through the first half of 1970, that the investment tax credit would be repealed, and that social security benefits would be increased by 10 per cent on April 1. The projections suggested that expansion in aggregate final demands would continue to moderate through the second quarter of 1970 and that the rate of inventory accumulation would be declining after the turn of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 25 U.S. merchandise exports rose more than imports in August, so the trade surplus increased a little. With respect to the over-all balance of payments, available data indicated that in August and September the deficit on the liquidity basis had been very large, although not so large as in preceding months, and that the balance on the official settlements basis had shifted into deficit. The official settlements balance had been in surplus for more than a year prior to August mainly as a result of increases in outstanding Euro-dollar borrowings of U.S. banks through their foreign branches, but there apparently had been little net change in those borrowings after July. Speculative flows of funds into Germany during September contributed to the shift in the official settlements balance. Recent developments in foreign exchange markets had been dominated by events connected with the German mark. Demands for marks increased in early September in anticipation of a possible revaluation of that currency after the German elections scheduled for September 28, and by Wednesday, September 24, the German Federal Bank had acquired a substantial volume of dollars in active but orderly trading. The German authorities closed their exchange markets the next 2 days and, after a brief resumption of trading, again on Monday, September 29. The Government then announced that the mark would be allowed to float temporarily, and the exchange rate immediately broke through its previous upper limit. Subsequently the mark strengthened further, reaching a premium above par of about fsVi per cent at the time of this meeting. During the period, the German Federal Bank frequently sold dollars to moderate fluctuations in the rate. The rise in the exchange rate and the expectation that the mark would be revalued once a new German Government was formed led to some reduction in the earlier tensions in foreign exchange markets, although the French franc and the Italian lira remained under selling pressure. Earlier in September discount rates had been increased by the central banks of Germany, Belgium, Switzerland, Austria, and Norway. Despite the tightening of conditions in domestic European money markets, interest rates in the Euro-dollar market—which had risen steadily during August—declined moderately after early September, partly because of the easing in demands by U.S. banks for Eurodollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 FEDERAL RESERVE BULLETIN n JANUARY 1970 On September 17 the Treasury announced that in exchange for securities maturing on October 1 and December 15, 1969, it would offer three new notes having, respectively, maturities of about 20 months, 3 years and 8 months, and 6 years and 10 months, and yields of 8, 7.75, and 7.59 per cent. The new issues were initially well received and rose to a premium in the market. Of the $7.6 billion of maturing securities held by the public, about $5.8 billion were exchanged for the new issues, including somewhat more than $1 billion for each of the two longer-term notes. Following this financing, the Treasury announced that on October 8 it would auction $2 billion of tax-anticipation bills due in April 1970. The Treasury was expected to raise additional funds during the fourth quarter to meet further cash needs. Treasury cash balances at both commercial banks and Federal Reserve Banks had been reduced to very low levels prior to the mid- September tax date, and in the period September 5-16 the Treasury had temporarily financed some of its cash needs through sales of special short-term certificates of indebtedness to the Federal Reserve. The volume of such certificates reached a 16-year high of $1.1 billion on September 10,1 but the Treasury was able to redeem all outstanding certificates by September 17 and subsequently to rebuild its cash balances to a substantial level. 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. Sizable operations were required to offset the impact on bank reserves and money market conditions of substantial changes in Treasury cash balances and large shifts of funds among banks stemming from the Treasury refunding and from foreign central bank transactions. Federal funds traded mainly in a range of %Vi to 9Vi per cent; the average effective rate of about 9 Vs per cent was slightly higher than in the preceding interval. Member bank borrowings averaged $1,075 million in the 4 weeks 1 The volume of special certificates held by the Federal Reserve totaled $322 million on September 5 through 7, $653 million on September 8, $830 million on September 9, $1,102 million on September 10, $862 million on September 11, $759 million on September 12 through 14, $513 million on September 15, and $972 million on September 16. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 27 ending October 1, down from an average of $1,250 million in the previous 4 weeks. Excess reserves were little changed on the average, and so net borrowed reserves also declined. Against the background of continuing credit restraint and limited availability of funds, most market interest rates had risen to new highs in the period since the previous meeting of the Committee. Yield increases were relatively pronounced in the capital markets which absorbed large amounts of new corporate, Federal agency, and intermediate-term Treasury issues. Most recently, however, yields on Treasury and new corporate bonds had stabilized following the good reception accorded a sizable new Federal agency offering, some purchases of Treasury notes and bonds by official accounts, and the publication of the 4 per cent unemployment figure for September. Yields on State and local government bonds had moved counter to the general trend in September; they had declined somewhat as a result of a continuing light volume of new issues and of developments in the Congress relating to proposed legislation affecting the tax-exempt status of such obligations. Most short-term interest rates also had risen since the previous meeting. Rates on Treasury bills were an exception; they were relatively stable for most of the period—mainly because of reinvestment demands generated by the Treasury refunding and by foreign central bank purchases—and had declined in recent days. The market rate on 3-month Treasury bills, at 6.94 per cent on the day before this meeting, was 15 basis points below its level 4 weeks earlier. Conditions in markets for residential mortgages continued to tighten in September. It appeared that savings flows at nonbank thrift institutions had remained weak during that month, and limited data available for the first few days of October suggested that net outflows following quarterly interest crediting would be larger than usual. At commercial banks, business loans outstanding increased moderately in September but holdings of U.S. Government securities declined sharply as banks sold Treasury bills acquired in the late-August bill-strip financing. The bank credit proxy—daily-average member bank deposits—increased at an annual rate of 2.5 per cent from August to September. On balance, there was a small reduction in the average outstanding volume of funds obtained by banks from "nondeposit" sources—including Euro-dollar borrowings, funds obtained Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 FEDERAL RESERVE BULLETIN n JANUARY 1970 by sales of loans to nonbank customers under repurchase agreements, and funds obtained through sales of commercial paper by bank affiliates. After adjustment for this development, the proxy series was estimated to have risen at an annual rate of about 2 per cent on the average in September. In the third quarter as a whole the proxy series so adjusted was estimated to have declined at an annual rate of 4.2 per cent. The increase in the average level of member bank deposits in September was attributable almost entirely to a sharp rise in U.S. Government deposits after the midmonth tax date. Private demand deposits and the money stock2 changed little. Total time and savings deposits declined at a much slower rate than earlier in the year, partly because of a marked reduction in net outflows of consumer-type deposits. In addition, there was a substantial increase in late September in foreign official time deposits. Further run-offs of large-denomination CD's occurred during the month, particularly at banks outside of New York. Staff projections suggested that the average level of member bank deposits would decline from September to October at an annual rate of 5 to 8 per cent if prevailing conditions were maintained in money and short-term credit markets. It appeared likely that the combined total outstanding of funds obtained from nondeposit sources would increase a little on the average—perhaps by an amount equivalent to 1 percentage point or less in the credit proxy. Among deposit categories, reductions were anticipated in the average level of both Government and private demand deposits, and the money stock was projected to decline at an annual rate of 2 to 5 per cent. Continued reductions were expected in both large-denomination CD's and other time and savings deposits. The run-off of CD's appeared likely to moderate appreciably, however, partly because the volume of foreign official deposits was expected to increase further. The Committee decided that a relaxation of monetary restraint 2 The regular annual benchmark corrections and revisions of seasonal adjustment factors for the money stock series had been made since the previous meeting of the Committee. The effect of the adjustment on the statistics for 1969 was to raise the estimated annual rate of growth during the first quarter from 2.9 to 4.1 per cent, and to lower the estimated second-quarter growth rate from 4.7 to 4.5 per cent. During the third quarter the annual rate of increase in the money stock series (on the new basis) was estimated at a fraction of 1 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 29 would not be appropriate at this time in light of the persistence of inflationary pressures and expectations. It was also noted in this connection that fiscal policy was likely to become less restrictive in early 1970 even if, as recommended by the administration, the income tax surcharge was continued at 5 per cent through the first half of the year. At the same time, the Committee agreed that an intensification of monetary restraint would not be desirable at present in view of the considerable degree of restraint already in effect and of the indications that the rate of economic expansion was moderating. The Committee concluded that open market operations should be directed at maintaining the prevailing firm conditions in money and short-term credit markets, subject to the proviso that operations should be modified if bank credit appeared to be deviating significantly from current projections. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that the pace of expansion in real economic activity was sustained in the third quarter by an acceleration of inventory investment, which about offset a further slackening in growth of private final sales. Some monthly economic measures have weakened recently, and slower over-all growth is projected for the fourth quarter. Substantial upward pressures on prices and costs are persisting. Most market interest rates recently have risen to new highs as demands for funds have pressed against limited supplies. In September, on average, the money supply changed little as U.S. Government deposits rose considerably further, and bank credit increased slightly after 2 months of substantial decline. The outstanding volume of large-denomination CD's decreased further in September, and flows of consumer-type time and savings funds at banks and nonbank thrift institutions appear to have remained relatively weak. The U.S. foreign trade surplus increased a little in August. In August and September the deficit in the over-all balance of payments on the liquidity basis was very large, although not as large as in preceding months; and the official settlements balance, which had been in surplus for more than a year, shifted into deficit, reflecting slackened Euro-dollar borrowing by U.S. banks and new speculative flows into Germany. Exchange market tensions were reduced somewhat when the German Government decided to cease Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 FEDERAL RESERVE BULLETIN a JANUARY 1970 temporarily official sales of marks, after which the exchange rate for that currency rose above the official parity. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the reduction of inflationary pressures, with a view to encouraging sustainable economic growth and attaining reasonable equilibrium in the country's balance of payments. To implement this policy, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining the prevailing firm conditions in money and short-term credit markets; provided, however, that operations shall be modified if bank credit appears to be deviating significantly from current projections. Votes for this action: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Mitchell, Robertson, Scanlon, and Sherrill. Vote against this action: Mr. Maisel. In dissenting from this action Mr. Maisel noted that interest rates on all types of market securities had risen substantially on balance in the period since late April, and that during this period the Committee's directives—like that favored by the majority today—had called for maintenance of prevailing firm conditions in money and short-term credit markets. He also noted that the behavior of key monetary aggregates, including member bank reserves, the money stock, and bank credit, had been considerably weaker in the third quarter—either declining more rapidly or rising more slowly—than in the first half of the year; and that sharp declines in the aggregates were projected for October if prevailing money market conditions were maintained. As at the two previous meetings, Mr. Maisel expressed the view that such evidence indicated a steady increase in monetary restrictiveness. He favored permitting more flexibility in money market conditions in order to maintain but not intensify the present degree of monetary restraint measured in terms of key aggregates and interest rates. 2. Amendments to continuing authority directive. On recommendation of the Manager of the System Open Market Account, the Committee made two amendments to the continuing author- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 31 ity directive issued to the Federal Reserve Bank of New York regarding domestic open market operations. In addition, the dollar limit specified in paragraph 2 of the directive on Federal Reserve Bank holdings of special short-term certificates of indebtedness purchased directly from the Treasury, which had been temporarily increased from $1 billion to $2 billion at the previous meeting, reverted to $1 billion under the terms of the action the Committee had taken then. One of the amendments made today also affected paragraph 2; it involved the addition of language authorizing Reserve Banks other than the New York Bank to purchase special short-term certificates from the Treasury for their own account at times when the New York Reserve Bank was closed. With this amendment, paragraph 2 read as follows: 2. The Federal Open Market Committee authorizes and directs the Federal Reserve Bank of New York to purchase directly from the Treasury for the account of the Federal Reserve Bank of New York, or, if the New York Reserve Bank is closed, any other Reserve Bank for its own account (with discretion, in cases where it seems desirable, to issue participations to one or more Federal Reserve Banks) such amounts of special short-term certificates of indebtedness as may be necessary from time to time for the temporary accommodation of the Treasury; provided that the rate charged on such certificates shall be a rate YA of 1 per cent below the discount rate of the Federal Reserve Bank of New York at the time of such purchases, and provided further that the total amount of such certificates held at any one time by the Federal Reserve Banks shall not exceed $1 billion. The second amendment to the directive consisted of the addition of a new paragraph 3, authorizing the Reserve Banks to engage under certain conditions in lending of U.S. Government securities held in the System Open Market Account. The new paragraph read as follows: 3. In order to insure the effective conduct of open market operations, the Federal Open Market Committee authorizes and directs the Federal Reserve Banks to lend U.S. Government securities held in the System Open Market Account to Government securities dealers and to banks participating in Government securities clearing arrangements conducted through a Federal Reserve Bank, under such instructions as the Committee may specify from time to time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 FEDERAL RESERVE BULLETIN a JANUARY 1970 Votes for these actions: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against these actions: None. The amendment to paragraph 2 was made in view of the possibility that the Treasury might need temporary accommodation at times, such as the forthcoming Columbus Day holiday, when the New York Reserve Bank was closed and some other Reserve Banks remained open. The action to add the new paragraph 3 was taken after the Manager had advised that the problem of delivery failures in the Government securities market had worsened significantly over the past year, partly because private facilities for lending such securities had become inadequate; that delivery failures were markedly impairing the performance of the market; and that the functioning of the market would be improved if securities held in the System Open Market Account could be lent, for the express purpose of avoiding delivery failures, to Government securities dealers doing business with the Federal Reserve Bank of New York and to banks participating in securities clearing arrangements conducted through a Reserve Bank. The Committee concurred in the Manager's judgment that under existing circumstances such lending of securities from the System Open Market Account was reasonably necessary to the effective conduct of open market operations and to the effectuation of open market policies. It was agreed that the authorization would be reviewed periodically to determine whether the contemplated lending activity remained necessary. ' The initial instructions specified by the Committee in conjunction with this authorization included a $75 million limit on the par value of securities involved in outstanding loans to any individual dealer at any time and a limit of three business days on the duration of loans to dealers, with those loans eligible for renewal under certain circumstances. The instructions also specified that both the dealers and the banks that borrowed securities were to deposit and pledge collateral consisting of U.S. Government securities of greater current market value than the securities borrowed. In addition, the lending fee to be charged on such securities loans was set at a rate higher than the pre- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 33 vailing fee charged by private lenders, in order to encourage continued maximum use of available private facilities for lending of Government securities. 3. Amendment to authorization for System foreign currency operations. The Committee approved increases from $100 million to $200 million equivalent in the System swap arrangements with the Austrian National Bank, the National Bank of Denmark, and the Bank of Norway, and the corresponding amendments to paragraph 2 of the authorization for System foreign currency operations, effective immediately. As a result of this action, paragraph 2 read as Mows: 2. 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, Relations with Foreign Banks and Bankers, and with the approval of the Committee to renew such arrangements on maturity: Amount of arrangement Foreign bank (millions of dollars equivalent) Austrian National Bank 200 National Bank of Belgium 500 Bank of Canada 1,000 National Bank of Denmark 200 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 200 Bank of Sweden 250 Swiss National Bank 600 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Amount of _ . , , arrangement Foreign bank , ...r c 6 (millions of dollars equivalent) Bank for International Settlements: Dollars against Swiss francs 600 Dollars against authorized European currencies other than Swiss francs 1,000 Votes for this action: Messrs. Martin, Hayes, Bopp, Brimmer, Clay, Coldwell, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against this action: None. While Austria, Denmark, and Norway each had a strong current account in its international payments balance, all three countries had experienced reserve losses recently, for the most part as a result of the pull of high Euro-dollar interest rates and of speculation on a revaluation of the German mark. The indicated action was taken on recommendation of the Special Manager, who advised that it should prove helpful in providing against the contingency of destabilizing short-run speculative pressures on the currencies of the countries involved. 34 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS; "SEC. 7. Effective March 22, 1971: COMMERCIAL PAPER; "(1) So much of section 19(j) of the Federal RESERVES AGAINST EURODOLLAR BORROWINGS; Reserve Act (12 U.S.C. 371 (b)) as precedes the third sentence thereof is amended to read as it would without DEPOSIT INSURANCE COVERAGE; the amendment made by section 2(c) of this Act. SELECTIVE CREDIT CONTROLS "(2) The second and third sentences of section By Act approved December 23, 1969 (Public 18(g) of the Federal Deposit Insurance Act (12 U.S.C. Law 91-151), Congress extended until March 22, 1828(g)) are amended to read as they would without the amendment made by section 3 of this Act. 1971, the flexible authority of the Board, the Fed- "(3) The last three sentences of section 18(g) of eral Deposit Insurance Corporation, and the the Federal Deposit Insurance Act (12 U.S.C. 1828 Federal Home Loan Bank Board in regulating the (g)) are repealed. maximum rates of interest or dividends payable by "(4) Section 5B of the Federal Home Loan Bank insured banks and savings and loan associations on Act (12 U.S.C. 1425b) is repealed." deposit or share accounts. Included among other * * * provisions of the Act are specific authorizations for SEC. 4. (a) Section 19(a) of the Federal Reserve Act (12 U.S.C. 461) is amended by inserting after the Board (1) to apply rate limitations and reserve the word "interest," the following: "to determine what requirements to commercial paper issued indirectly types of obligations, whether issued directly by a memby a member bank through an affiliate and (2) to ber bank or indirectly by an affiliate of a member bank apply reserve requirements to Eurodollar borrow- or by other means, shall be deemed a deposit,". ings by member banks. The Act also increased * * * from $15,000 to $20,000 the insurance coverage of SEC. 5. Section 19(b) of the Federal Reserve Act deposits insured by the Federal Deposit Insurance (12 U.S.C. 461) is amended by adding at the end Corporation and accounts insured by the Federal thereof a new sentence as follows: "The Board may, however, prescribe any reserve ratio, not more than 22 Savings and Loan Insurance Corporation. per centum, with respect to any indebtedness of a mem- By repealing provisions of the Defense Produc- ber bank that arises out of a transaction in the ordinary course of its banking business with respect to either tion Act of 1950, the Act restores to the President funds received or credit extended by such bank to a authority to encourage representatives of all major bank organized under the law of a foreign country or a sectors of the private economy to enter into volun- dependency or insular possession of the United States." tary agreements and programs furthering the objec- * * * tives of the Defense Production Act and exempts SEC. 7 (a) The following provisions of the Federal participants from prosecution under the antitrust Deposit Insurance Act are amended by changing laws because of their activities in such programs. "$15,000", each place it appears therein, to read In addition, the Act grants the President standby "$20,000": (1) The first sentence of section 3(m) (12 U.S.C. authority to request the Board to institute selective 1813(m)). credit controls when necessary to curb inflation. (2) The first sentence of section 7(i) (12 U.S.C. The text of the relevant portions of the Act is as 1817(i)). follows: (3) The last sentence of section ll(a) (12 U.S.C. AN ACT 1821(a)). (4) The fifth sentence of section ll(i) (12 U.S.C. To lower interest rates and fight inflation; to help 1821(i)). housing, small business, and employment; to increase (b) The amendments made by this section are not the availability of mortgage credit; and for other purapplicable to any claim arising out of the closing of poses. a bank prior to the date of enactment of this Act. Be it enacted by the Senate and House of Repre- SEC. 8. (a). The following provisions of title IV sentatives of the United States of America in Congress of the National Housing Act are amended by changing assembled, "$15,000", each place it appears therein, to read "$20,000": TITLE I—AMENDMENTS TO EXISTING ACTS (1) Section 401 (b) (12 U.S.C. 1724(b)). SECTION 1. Section 7 of the Act of September 21, (2) Section 405(a) (12 U.S.C. 1728(a)). 1966 (Public Law 89-587; 80 Stat. 823) is amended (b) The amendments made by this section are not to read: applicable to any claim arising out of a default, as 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 FEDERAL RESERVE BULLETIN • JANUARY 1970 defined in section 401 (d) of the National Housing Act, tuate the purposes of this title, to prevent circumvenwhere the appointment of a conservator, receiver, or tion or evasion thereof, or to facilitate compliance other legal custodian as set forth in that section be- therewith. comes effective prior to the date of enactment of this Sec. 204. Determination of interest charge Act. Except as otherwise provided by the Board, the SEC. 9. (a) Section 708(b) of the Defense Pro- amount of the interest charge in connection with any duction Act of 1950 (50 U.S.C. 2158(b) is amended credit transaction shall be determined under the regby striking out everything after "United States", the ulations of the Board as the sum of all charges payfirst time it appears, and inserting a period in lieu able directly or indirectly to the person by whom the thereof. credit is extended in consideration of the extension (b) Section 708(f) of that Act (50 U.S.C. 2158(f)) of credit. is repealed. Sec. 205. Authority for institution of credit controls (a) Whenever the President determines that such TITLE n—AUTHORITY FOR CREDIT CONTROL action is necessary or appropriate for the purpose of preventing or controlling inflation generated by the Sec. 201. Short title extension of credit in an excessive volume, the Pres- This title may be cited as the Credit Control Act. ident may authorize the Board to regulate and control Sec. 202 Definitions and rules of construction any or all extensions of credit. (a) The definitions and rules of construction set (b) The Board may, in administering this Act, forth in this section apply to the provisions of this title. utilize the services of the Federal Reserve banks and (b) The term "Board" refers to the Board of Gov- any other agencies, Federal or State, which are availernors of the Federal Reserve System. able and appropriate. (c) The term "organization" means a corporation, Sec. 206. Extent of control government or governmental subdivision or agency, The Board, upon being authorized by the President trust, estate, partnership, cooperative, or association. under section 205 and for such period of time as he (d) The term "person" means a natural person or may determine, may by regulation an organization. (1) require transactions or persons or classes of (e) The term "credit" means the right granted by a either to be registered or licensed. creditor to a debtor to defer payment of debt or to (2) prescribe appropriate limitations, terms, and incur debt and defer its payment. conditions for any such registration or license. (f) The term "creditor" refers to any person who (3) provide for suspension of any such registration extends, or arranges for the extension of, credit, or license for violation of any provision thereof or of whether in connection with a loan, a sale of property any regulation, rule, or order prescribed under this Act. or services, or otherwise. (4) prescribe appropriate requirements as to the (g) The term "credit sale" refers to any sale with keeping of records and as to the form, contents, or subrespect to which credit is extended or arranged by the stantive provisions of contracts, liens, or any relevant seller. The term includes any rental-purchase contract documents. any contract or arrangement for the bailing or leasing (5) prohibit solicitations by creditors which would of property when used as a financing device. encourage evasion or avoidance of the requirements of (h) The terms "extension of credit" and "credit tran- any regulation, license, or registration under this Act. saction" include loans, credit sales, the supplying of (6) prescribe the maximum amount of credit which funds through the underwriting, distribution, or ac- may be extended on, or in connection with, any loan, quisition of securities, the making or assisting in the purchase, or other extension of credit. making of a direct placement, or otherwise participat- (7) prescribe the maximum rate of interest, maxing in the offering, distribution, or acquisition of se- imum maturity, minimum periodic payment, maximum curities. period between payments, and any other specification (i) The term "borrower" includes any person to or limitation of the terms and conditions of any exwhom credit is extended. tension of credit. (j) The term "loan" includes any type of credit, (8) prescribe the methods of determining purchase including credit extended in connection with a credit prices or market values or other bases for computing sale. permissible extensions of credit or required down- (k) The term "State" refers to any State, the Com- payment. monwealth of Puerto Rico, the District of Columbia, (9) prescribe special or different terms, conditions, and any territory or possession of the United States. or exemptions with respect to new or used goods, (1) Any reference to any requirement imposed un- minimum original cash payments, temporary credits der this title of any provision thereof includes refer- which are merely incidental to cash purchases, payence to the regulations of the Board under this title or ment or deposits usable to liquidate credits, and other the provision thereof in question. adjustments or special situations. Sec. 203. Regulations (10) prescribe maximum ratios, applicable to any The Board shall prescribe regulations to carry out class of either creditors or borrowers or both, of loans the purposes of this title. These regulations may con- of one or more types or of all types. tain such classifications, differentiations, or other pro- (A) to deposits of one or more types or of all types. visions, and may provide for such adjustments and (B) to assets of one or more types or of all types. exceptions for any class of transactions, as in the (11) prohibit or limit any extensions of credit under judgment of the Board are necessary or proper to effec- any circumstances the Board deems appropriate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 37 Sec. 207. Reports AMENDMENTS TO REGULATION D Reports concerning the kinds, amounts, and charac- Effective February 12, 1970, section 204.l(f) teristics of any extensions of credit subject to this title, is amended to read as follows: or concerning circumstances related to such extensions of credit, shall be filed on such forms, under oath or (f) Deposits as including certain promissory otherwise, at such times and from time to time, and notes and other obligations. For the purposes of by such persons, as the Board may prescribe by reg- this part, the term "deposits" also includes a memulation or order as necessary or appropriate for enablber bank's liability on any promissory note, acing the Board to perform its functions under this title. knowledgment of advance, due bill, or similar The Board may require any person to furnish, under oath or otherwise, complete information relative to any obligation (written or oral) that is issued or untransaction within the scope of this title including the dertaken by a member bank principally as a means production of any books of account, contracts, letters, of obtaining funds to be used in its banking busior other papers, in connection therewith in the cusness, except any such obligation that: tody or control of such person. Sec. 208. Injunctions (1) is issued to (or undertaken with respect to) Whenever it appears to the Board that any person and held for the account of (i) a domestic bankhas engaged, is engaged, or is about to engage in any ing office5" of another bank or (ii) an agency of acts or practices constituting a violation of any regula- the United States or the Government Development tion under this title, it may in its discretion bring an Bank for Puerto Rico; action, in the proper district court of the United States or the proper United States court of any territory or (2) evidences an indebtedness arising from a other place subject to the jurisdiction of the United transfer of direct obligations of, or obligations that States, to enjoin such acts or practices, and upon a are fully guaranteed as to principal and interest by, proper showing a permanent or temporary injunction the United States or any agency thereof that the or restraining order shall be granted without bond. bank is obligated to repurchase; Upon application of the Board, any such court may also issue mandatory injunctions commanding any (3) has an original maturity of more than two person to comply with any regulation of the Board years, is unsecured, and states expressly that it is under this title. subordinated to the claims of depositors; or Sec. 209. Civil penalties (4) arises from a borrowing by a member bank (a) For each wilful violation of any regulation from a dealer in securities, for one business day, under this title, the Board may assess upon any person to which the regulation applies, and upon any part- of proceeds of a transfer of deposit credit in a ner, director, officer, or employee thereof who will- Federal Reserve Bank (or other immediately availfully participates in the violation, a civil penalty not able funds), commonly referred to as "Federal exceeding $1,000. funds", received by such dealer on the date of the (b) In the event of the failure of any person to pay loan in connection with clearance of securities any penalty assessed under this section, a civil action for the recovery thereof may, in the discretion of the transactions. Board, be brought in the name of the United States. This paragraph shall not, however, affect (i) any Sec. 210. Criminal penalty instrument issued before June 27, 1966, (ii) any Whoever willfully violates any regulation under this instrument that evidences an indebtedness arising title shall be fined not more than $1,000 or imprisoned not more than one year, or both. from a transfer of assets under repurchase agreement issued before July 25, 1969, or (iii) any instrument issued to a foreign office or another bank before June 27, 1969. * * * ** FEDERAL FUNDS TRANSACTIONS AS DEPOSITS Effective February 12, 1970, section 204.5(c) is amended by inserting after "to foreign offices of The Board of Governors, effective February 12, other banks8" the following ", or institutions the 1970, has amended Regulation D, "Reserves of time deposits of which are exempt from the rate Member Banks," and Regulation Q, "Interest on limitations of Regulation Q pursuant to § 217.3 (g) Deposits," to narrow the category of "Federal thereof,". funds" transactions that are exempt from Regulations D and Q. The main effect will be to bring AMENDMENT TO REGULATION Q within the coverage of those regulations "Federal Effective February 12, 1970, section 217.1 (f) is funds" transactions with any person other than a amended to read as follows: bank and its subsidiaries, various governmental 5*Any banking office in any State of the United institutions, or a securities dealer in certain cases. States or the District of Columbia of a bank organized The text of the amendments reads as follows: under domestic or foreign law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 FEDERAL RESERVE BULLETIN a JANUARY 1970 (f) Deposits as including certain promissory nondeposit borrowings rather than as deposits. One notes and other obligations. For the purposes of question that arose in connection with such amendthis part, the term "deposits" also includes a mem- ment is the meaning of "bank" as such term is ber bank's liability on any promissory note, ac- used in the exemption from Regulation Q for obliknowledgment of advance, due bill, or similar gations in nondeposit form to another bank. Such obligation (written or oral) that is issued or un- an exemption has been included in § 217.1(f) since dertaken by a member bank principally as a means its adoption in 1966. As used in such exemption, of obtaining funds to be used in its banking busi- "bank" includes a member bank, a nonmember ness, except any such obligation that: commercial bank, a savings bank (mutual or (1) is issued to (or undertaken with respect to) stock), a building or savings and loan association and held for the account of (i) a bank or an or cooperative bank, the Export-Import Bank of institution the time deposits of which are exempt the United States, or a foreign bank. It also includes from § 217.7 pursuant to § 217.3(g) or (ii) an bank subsidiaries that engage in business in which agency of the United States or the Government their parents are authorized to engage and sub- Development Bank for Puerto Rico; sidiaries the stock of which is by statute explicitly (2) evidences an indebtedness arising from a eligible for purchase by national banks. transfer of direct obligations of, or obligations that To assure that the exemption for liabilities to are fully guaranteed as to principal and interest by, banks is not used as a means by which nonbanks the United States or any agency thereof that the may arrange through a bank to "sell" Federal bank is obligated to repurchase; funds to a member bank that are not subject to (3) has an original maturity of more than two Regulations D and Q, obligations within the years, is unsecured, and states expressly that it is exemption must be issued to another bank for its subordinated to the claims of depositors; or own account. In view of this requirement, a mem- (4) arises from a borrowing by a member bank ber bank that "purchases" Federal funds should from a dealer in securities, for one business day, of take such action as may be necessary to ascertain proceeds of a transfer of deposit credit in a Federal the character (not necessarily the identity) of the Reserve Bank (or other immediately available actual "seller" in order to justify classification of funds), commonly referred to as "Federal funds", its liability on the transaction as "Federal funds received by such dealer on the date of the loan purchased" rather than as a deposit. Any bank in connection with clearance of securities transac- that has given general assurance to a member bank tions. that sales by it of Federal funds ordinarily will be This paragraph shall not, however, affect (i) any for its own account and thereafter executes such instrument issued before June 27, 1966, or (ii) transactions for the account of others, should disany instrument that evidences an indebtedness aris- close the nature of the actual lender with respect ing from a transfer of assets under repurchase to each such transaction. If it fails to do so, the agreement issued before July 25, 1969. selling bank would be deemed by the Board as indirectly violating section 19 of the Federal Reserve Act and Regulation Q. INTERPRETATION OF REGULATION Q Also to assure the effectiveness of the limitations In conjunction with the amendment to section on persons who sell Federal funds to member 217.1 (f) of Regulation Q relating to Federal funds banks, the amended § 217.1 (f) applies to nontransactions as deposits, which will become effecdocumentary obligations undertaken by a member tive February 12, 1970, the Board has superseded, bank to obtain funds for use in its banking business, effective that date, its interpretation on "Transfer as well as to documentary obligations. In recent from deposit account to 'borrowed money' account months a number of banks have made the Federal and payment of interest thereon" by amending funds market available to business corporations. such interpretation to read as follows: In some cases this has been on the basis of book entries, in which no instrument is involved. Under MEMBER BANK PARTICIPATION IN the amendment, a bank's liability under informal "FEDERAL FUNDS" MARKET arrangements as well as those formally embodied in a document are within the coverage of § 217.1 (f). Effective February 12, 1970, the Board of Governors has amended § 217.1 (f) to narrow the The expansion of § 217.l(f) to nondocumencategory of "Federal funds" transactions entered tary obligations does not mean that every bank into by member banks that may be classified as liability on a transaction that results in the bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 39 obtaining funds is a deposit. An indorser's or con- since it specifically prohibited the Board from makditional liability such as arises when a bank sells a ing such paper eligible for discount. If "commerloan with recourse need not be classified as a de- cial" is broad enough to encompass investment posit liability. Also, a bank's liability on an ac- banking, it would also seem to include mortgage ceptance that it sells in the market is not a deposit banking. liability under the amendment. In providing for the discount of commercial It should also be noted that when a member paper by Reserve Banks, Congress obviously inbank issues an obligation principally for a purpose tended to facilitate the current financing of agriculother than as a means of obtaining funds to be used ture, industry, and commerce, as opposed to longin its banking business—such as usually would be term investment.3 In the main, trading in stocks and the case with respect to a due bill issued to evidence bonds is investment-oriented; most securities transthe bank's liability to deliver securities or foreign actions do not directly affect the production or exchange sold—it need not classify its liability distribution of goods and services. Mortgage bankthereon as a deposit. However, the circumstances ing, on the other hand, is essential to the construcsurrounding an obligation issued ostensibly for a tion industry and thus more closely related to purpose other than obtaining funds for use in the industry and commerce. Although investment ordinary course of business may cause an obligation bankers also perform similar functions with respect to become subject to Regulation Q—for example, to newly-issued securities, Congress saw fit to deny if the bank's liability on a due bill extended beyond eligibility to all paper issued to finance the carrying a period exceeding that necessary to complete the of securities. Congress did not distinguish between securities sale, or if the bank paid interest to the newly-issued and outstanding securities, perhaps customer in excess of the amount that accrued on covering the larger area in order to make certain the securities sold during the delay in delivery. that the area of principal concern (i.e., trading in outstanding stocks and bonds) was fully included. Speculation was also a major Congressional INTERPRETATION OF REGULATION A concern, but speculation is not a material element ELIGIBILITY FOR DISCOUNT OF in mortgage banking operations. Mortgage loans MORTGAGE COMPANY NOTES would not therefore seem to be within the purpose underlying the exclusions from eligibility in sec- The question has arisen whether notes issued by tion 13. mortgage banking companies to finance their ac- Section 201.3 (a) of Regulation A provides that quisition and temporary holding of real estate morta negotiable note maturing in 90 days or less is not gages are eligible for discount by Reserve Banks. eligible for discount if the proceeds are used "for Under section 13 of the Federal Reserve Act permanent or fixed investments of any kind, such the Board has authority to define what are "agrias land, buildings or machinery, or for any other cultural, industrial, or commercial purposes", which fixed capital purpose". However, the proceeds of is the statutory criterion for determining the eligia mortgage company's commercial paper are not bility of notes and drafts for discount. However, used by it for any permanent or fixed capital pursuch definition may not include paper "covering pose, but only to carry temporarily an inventory of merely investments or issued or drawn for the purmortgage loans pending their "packaging" for sale pose of carrying or trading in stocks, bonds, or to permanent investors that are usually recurrent other investment securities". customers. The legislative history of section 13 suggests that In view of the foregoing considerations the Congress intended to make eligible for discount Board concluded that notes issued to finance such "any paper drawn for a legitimate business purpose of any kind."x and that the Board, in determining temporary "warehousing" of real estate mortgage loans are notes issued for an industrial or comwhat paper is eligible, should place a "broad and adaptable construction" 2 upon the terms in section mercial purpose, that such mortgage loans do not constitute "investment securities", as that term is 13. It may also be noted that Congress apparently used in section 13, and that the temporary holding considered paper issued to carry investment securiof such mortgages in these circumstances is not a ties as paper issued for a "commercial purpose", 1 House Report No. 69, 63d Cong., p. 48. 3 50 CONG. REC. 5012 (1913) (remarks of Rep. 3 50 CONG. REC. 4675 (1913) (remarks of Rep. Thompson of Oklahoma); 50 CONG. REC. 4731-32 Phelan). (1913) (remarks of Rep. Borland). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 FEDERAL RESERVE BULLETIN • JANUARY 1970 permanent investment by the mortgage banking Insurance Corporation, 550 17th Street NW., company. Accordingly, the Board held that notes Washington, D.C. In addition, copies of the regishaving not more than 90 days to run which are tration statement and reports required by § 206.4 issued to finance the temporary holding of mortgage (exclusive of exhibits), the statements required by loans are eligible for discount by Reserve Banks. § 206.5(a), and the annual reports to security holders required by § 206.5(c), will be available SECURITIES OF MEMBER STATE BANKS for inspection at the New York, Chicago, and San Francisco Federal Reserve Banks and at the Effective December 31, 1969, the Board of Reserve Bank of the district in which the bank Governors amended Regulation F, "Securities of filing the statements or reports is located. Member State Banks", principally to incorporate * * * ** the "net income" concept for reporting bank inincome. (The adoption of this concept was an- SECTION 206.4—REGISTRATION nounced on July 18, 1969; 1969 BULLETIN page STATEMENTS AND REPORTS 679.) * * * ** Revisions of the rules governing proxy solicita- (e) Requirement of annual reports. Every registions are included in the amendments. In the main, trant bank shall file an annual report for each such and other revisions clarify the applicability fiscal year after the last full fiscal year for which of various provisions of the regulation and incorfinancial statements were filed with the registration porate administrative practices adopted during statement. The report, which shall conform to the the five years since Regulation F was first adopted, requirements of Form F-2, shall be filed within 90 generally without imposing any additional redays after the close of the fiscal year or within 30 quirements. days of the mailing of the bank's annual report to The text of the amended and revised portions of stockholders, whichever occurs first. the Regulation is as follows: * * * ** AMENDMENTS TO REGULATION F (h) Quarterly reports. Every registrant bank shall file a quarterly report in conformity with the Effective December 31, 1969, portions of Regu- requirements of Form F-4 for each fiscal quarter lation F are amended to read as follows: ending after the close of the latest fiscal year for which financial statements were filed in a registra- SECTION 206.2—DEFINITIONS tion statement, except that no report need be filed * * * ** for the fiscal quarter which coincides with the end (z) The term "significant subsidiary" means of the fiscal year of the bank. Such reports shall a subsidiary meeting either of the following con- be filed not later than 30 days after the end of such ditions: quarterly period, except that the report for any (1) The investments in the subsidiary by its period ending prior to the date on which a class parent plus the parent's proportion of the invest- of securities of the bank first becomes effectively ments in such subsidiary by the parent's other sub- registered may be filed not later than 30 days after sidiaries, if any, exceed 5 per cent of the equity the effective date of such registration. capital accounts of the bank. "Investments" refers * * * ** to the amount carried on the books of the parent (q) Number of copies; signatures; binding. (1) and other subsidiaries or the amount equivalent to Except where otherwise provided in a particular the parent's proportionate share in the equity capiform, eight copies of each registration statement tal accounts of the subsidiary, whichever is greater. and report (including financial statements) and * * * ** four copies of each exhibit and each other doc- SECTION 206.3—INSPECTION AND ument filed as a part thereof, shall be filed with the PUBLICATION OF INFORMATION Board. At least one complete copy of each state- FILED UNDER THE ACT ment shall be filed with each exchange, if any, on which the securities covered thereby are being registered. At least one copy of each report shall be (b) Inspection. Except as provided in parafiled with each exchange, if any, on which the bank graph (c) of this section, all information filed has securities registered. regarding a security registered with the Board will be available for inspection at the Federal Deposit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 41 SECTION 206.5—PROXIES, PROXY form deemed suitable by the management. This STATEMENTS, AND STATEMENTS paragraph (c) shall not apply, however, to solicita- WHERE MANAGEMENT DOES tions made on behalf of management before the NOT SOLICIT PROXIES financial statements are available if solicitation is being made at the time in opposition to the man- (a) Requirement of statement. No solicitation agement and if the management's Statement inof a proxy with respect to a security of a bank cludes an undertaking in bold-faced type to furnish registered pursuant to section 12 of the Act shall such annual report to all persons being solicited at be made unless each person solicited is concurleast 20 days before the date of the meeting. rently furnished or has previously been furnished with a written proxy statement containing the in- NOTES: 1. To reflect adequately the financial posiformation required by Form F-5. If the manage- tion and results of operations of a bank in its annual report to security holders, the financial presentation ment of any bank having such a security outstandshall include, but not necessarily be limited to, the foling fails to solicit proxies from the holders of lowing: any such security in such a manner as to require (a) Comparative statements of condition at the end the furnishing of such proxy statement, such bank of each of the last 2 fiscal years. shall transmit to all holders of record of such (b) Comparative statements of income in a form security a statement containing the information providing for the determination of "net income" for required by Form F-5. The "information state- each fiscal year and per share earnings data. ment" required by the preceding sentence shall be (c) Comparative statements of changes in capital accounts for each fiscal year similar in form to Form transmitted (i) at least 20 calendar days prior to F-9C. any annual or other meeting of the holders of (d) A comparative reconciliation of the "Allowsuch security at which such holders are entitled to ance for Possible Loan Losses" account similar in form vote, or (ii) in the case of corporate action taken to schedule VII, Form F-9D. with the written authorization or consent of se- (e) Supplemental notes to financial statements to curity holders, at least 20 days prior to the earliest the extent necessary to furnish a fair financial presendate on which the corporate action may be taken. tation. A proxy statement or an information statement 2. The financial statements should be prepared on required by this paragraph-is hereinafter some- a consolidated basis to the extent required by § 206.7 (d). Any differences from the principles of times referred to as a "Statement". consolidation or other accounting principles or practices, or methods of applying accounting principles or practices, applicable to the financial statements of the (c) Annual report to security holders to accom- bank filed or to be filed with the Board, which have pany statements. (1) Any statement furnished on a material effect on the financial position or results of operations of the bank, shall be noted and the effect behalf of the management of the bank that relates thereof reconciled or explained in the annual report to to an annual meeting of security holders at which security holders. directors are to be elected shall be accompanied or 3. When financial statements included in the annual preceded by an annual report to such security report (Form F-2) filed, or proposed to be filed, with holders containing such financial statements for the Board are accompanied by an opinion of an indethe last 2 fiscal years as will, in the opinion of the pendent public accountant, the financial statements in the annual report to security holders should also be management, adequately reflect the financial posiaccompanied by an opinion of such independent public tion of the bank at the end of each such year and accountant. the results of its operations for each such year. 4. The requirement for sending an annual report to The financial statements included in the annual each person being solicited will be satisfied with respect report may omit details or summarize information to persons having the same address by sending at least if such statements, considered as a whole in the one report to a holder of record at that address provided (i) that management has reasonable cause to believe light of other information contained in the report that the record holder to whom the report is sent is the and in the light of the financial statements of the "beneficial owner" (see definition in § 206.2 (ff)) of sebank filed or to be filed with the Board, will not curities registered in the name of such person in other by such procedure omit any material information capacities or in the name of other persons at such adnecessary to a fair presentation or to make the dress, or (ii) the security holders at such address confinancial statements not misleading under the sent thereto in writing. Nothing herein shall be deemed to relieve any person so consenting of any obligation to circumstances. Subject to the foregoing requireobtain or send such annual report to any other person. ments with respect to financial statements, the (2) Eight copies of each annual report sent to annual report to security holders may be in any security holders pursuant to this paragraph (c) shall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 FEDERAL RESERVE BULLETIN • JANUARY 1970 be sent to the Board not later than (i) the date ing if such approval does not amount to ratification on which such report is first sent or given to of the action taken at that meeting; security holders or (ii) the date on which pre- (iii) The election of any person to any office liminary copies of the management statement are for which a bona fide nominee is named in the filed with the Board pursuant to paragraph (f), proxy statement and such nominee is unable to whichever date is later. Such annual report is not serve or for good cause refuses to serve; deemed to be "soliciting material" or to be "filed" (iv) Any proposal omitted from the proxy with the Board or otherwise subject to this § 206.5 statement and form of proxy pursuant to § or the liabilities of section 18 of the Act, except to 206.5 (k); the extent that the bank specifically requests that it (v) Matters incident to the conduct of the meetbe treated as a part of the proxy soliciting ma- ing. terial or incorporates it in the proxy statement by (5) No proxy shall confer authority (i) to vote reference. for the election of any person to any office for (d) Requirements as to proxy. (1) The form of which a bona fide nominee is not named in the proxy (i) shall indicate in bold-face type whether proxy statement, or (ii) to vote at any annual or not the proxy is solicited on behalf of the man- meeting other than the next annual meeting (or agement of the bank, (ii) shall provide a specifically any adjournment thereof) to be held after the date designated blank space for dating the proxy, and on which the proxy statement and form of proxy (iii) shall identify clearly and impartially each are first sent or given to security holders. A person matter or group of related matters that manage- shall not be deemed to be a bona fide nominee and ment intended to be acted upon, whether proposed he shall not be named as such unless he has conby the management or by security holders. No sented to being named in the proxy statement and reference need be made, however, to proposals as to serve if elected. to which discretionary authority is conferred pur- (6) The proxy statement or form of proxy shall suant to subparagraph (4) of this paragraph. provide, subject to reasonable specified conditions, that the shares represented by the proxy will be voted and that where the person solicited specifies by means of a ballot provided pursuant to sub- (3) A form of proxy which provides both for paragraph (2) of this paragraph, a choice with the election of directors and for action on other respect to any matters to be acted upon, the shares specified matters shall be prepared so as clearly will be voted in accordance with the specifications to provide, by a box or otherwise, means by which so made. the security holder may withhold authority to vote for the election of directors. Any such form of proxy which is executed by the security holder in (f) Material required to be filed. (1) Three presuch manner as not to withhold authority to vote liminary copies of each statement, form of proxy, for the election of directors shall be deemed to and other items of soliciting material to be furgrant such authority, provided the form of proxy nished to security holders concurrently therewith, so states in bold-face type. This paragraph (3) does shall be filed with the Board by management or any not apply (i) in the case of a merger, consolidaother person making a solicitation subject to this tion or other plan if the election of directors is an § 206.5 at least 10 calendar days (or 15 calendar integral part of the plan and is not to be separately voted upon or (ii) if the only matters to be acted days in-the case of other than routine meetings, upon are the election of directors and the election, as defined below) prior to the date such item is selection, or approval of other persons such as first sent or given to any security holders, or such clerks or auditors. shorter period prior to that date as may be authorized. For the purposes of this subparagraph (4) A proxy may confer discretionary authority (1), a routine meeting means a meeting with reto vote with respect to any of the following matters: spect to which no one is soliciting proxies subject (i) Matters that the persons making the solici- to this § 206.5 other than on behalf of managetation do not know, within a reasonable time before ment and at which management intends to present the solicitation, are to be presented at the meeting, no matters other than the election of directors, elecif a specific statement to that effect is made in tion of inspectors of election, and other recurring the proxy statement or form of proxy; matters. In the absence of actual knowledge to the (ii) Approval of the minutes of the prior meet- contrary, management may assume that no other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 43 such solicitation of the bank's security holders is liminary proxy material should be filed as early as being made. In cases of annual meetings, one addi- possible prior to the intended mailing date. tional preliminary copy of the Statement, the form (10) Where preliminary copies of material are of proxy, and any other soliciting material, marked filed with the Board pursuant to this subsection, to show changes from the material sent or given the printing of definitive copies for distribution to to security holders with respect to the preceding security holders should be deferred until the comannual meeting, shall be filed with the Board. ments of the Board's staff have been received and (2) Three preliminary copies of any additional considered. soliciting material, relating to the same meeting or subject matter, furnished to security holders subsequent to the proxy statement shall be filed with (h) False or misleading statements. (1) No the Board at least 2 days (exclusive of Saturdays, solicitation or communication subject to this section Sundays, and holidays) prior to the date copies of shall be made by means of any Statement, form of such material are first sent or given to security proxy, notice of meeting, or other communication, holders, or such shorter period prior to such date as written or oral, containing any statement that, at may be authorized upon a showing of good cause the time and in the light of the circumstances under therefor. which it is made, is false or misleading with respect to any material fact, or that omits to state any (3) Eight copies of each Statement, form of proxy, material fact necessary in order to make the stateand other items of soliciting material, in the form ments therein not false or misleading or necessary in which such material is furnished to security to correct any statement in any earlier communicaholders, shall be filed with, or mailed for filing to, tion with respect to the solicitation of a proxy for the Board not later than the date such material is the same meeting or subject matter that has befirst sent or given to any security holders. Three come false or misleading. Depending upon particcopies of such material shall at the same time be ular circumstances, the following may be misleadfiled with, or mailed for filing to, each exchange ing within the meaning of this paragraph: predicupon which any security of the bank is listed. tions as to specific future market values, earnings, (4) If the solicitation is to be made in whole or or dividends; material that directly or indirectly imin part by personal solicitation, three copies of all pugns character, integrity, or personal reputation, written instructions or other material that discusses or directly or indirectly makes charges concerning or reviews, or comments upon the merits of, any improper, illegal, or immoral conduct or associamatter to be acted upon, and is furnished to the intions, without factual foundation; failure so to dividuals making the actual solicitation for their identify a statement, form of proxy, and other use directly or indirectly in connection with the soliciting material as clearly to distinguish it from solicitation, shall be filed with the Board by the the soliciting material of any other person or perperson on whose behalf the solicitation is made at sons soliciting for the same meeting or subject least 5 days prior to the date copies of such mamatter; claims made prior to a meeting regarding terial are first sent or given to such individuals, or the results of a solicitation. such shorter period prior to that date as may be authorized upon a showing of good cause therefor. (2) The fact that a proxy statement, form of proxy, or other soliciting material has been filed with or reviewed by the Board or its staff shall not be (9) The date that proxy material is "filed" with deemed a finding by the Board that such material the Board for purposes of subparagraphs (1), (2), is accurate or complete or not false or misleading, and (4) of this paragraph is the date of receipt of or that the Board has passed upon the merits of the material by the Board, not the date of mailing or approved any statement therein or any matter to the Board. In computing the advance filing period to be acted upon by security holders. No represenfor preliminary copies of proxy soliciting ma- tation contrary to the foregoing shall be made. terial referred to in such subparagraphs, the filing date of the preliminary material is to be counted as the first day of the period and definitive material (o) Solicitation prior to furnishing required should not be planned to be mailed or distributed proxy statement. (1) Notwithstanding the provito security holders until after the expiration of sions of § 206.5(a), a solicitation (other than one such period. Where additional time is required for subject to § 206.5 (i)) may be made prior to furfinal printing after receipt of comments, the pre- nishing security holders a written proxy statement Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 FEDERAL RESERVE BULLETIN a JANUARY 1970 containing the information specified in Form F-5 the Board in preliminary form at least 5 business with respect to such solicitation if: days prior to the date definitive copies of such (1) The solicitation is made in opposition to material are first sent or given to security holders, a prior solicitation or an invitation for tenders or or such shorter period as may be authorized. other publicized activity, which if successful, * * * ** could reasonably have the effect of defeating the SECTION 206.7—FORM AND CONTENT action proposed to be taken at the meeting; OF FINANCIAL STATEMENTS (ii) No form of proxy is furnished to security * * * ** holders prior to the time the written proxy statement required by § 206.5(a) is furnished to se- (c) Provisions of general application. * * * security holders: Provided, however, That this sub- (9) General notes to balance sheets. If presparagraph (ii) shall not apply where a proxy ent with respect to the person for which the statement then meeting the requirements of Form statement is filed, the following shall be set forth F-5 has been furnished to security holders by or in the balance sheet or in referenced notes thereto: on behalf of the person making the solicitation; * * * ** (iii) The identity of the person or persons by (10) General notes to statements of income. or on whose behalf the solicitation is made and a If present with respect to the person for which the description of their interests direct or indirect, statement is filed, the following shall be set forth by security holdings or otherwise, are set forth in in the statement of income or in referenced notes each communication sent or given to security thereto: holders in connection with the solicitation, and * * * ** (iv) A written proxy statement meeting the requirements of this section is sent or given to se- (f) Schedules to be filed. * * * curity holders at the earliest practicable date. (2) The following schedule shall be filed with (2) Three copies of any soliciting material each statement of income filed pursuant to this proposed to be sent or given to security holders part: Schedule VII—Allowance for Possible Loan prior to the furnishing of the written proxy state- Losses. ment required by § 206.5 (a) shall be filed with * * * ** Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 45 (Revised Dec. 31, 1969) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FORM F-2 ANNUAL REPORT Pursuant to Section 13 of the Securities Exchange Act of 1934 For the fiscal year ended (Exact name of bank as specified in charter) (Address of principal office) GENERAL INSTRUCTIONS C. Reports by banks not filing proxy statements or statements where management does A. Preparation of report. This form is not not solicit proxies. Information contained in to be used as a blank form to be filled in but an annual report to security holders furnished only as a guide in the preparation of an annual to the Board pursuant to Instruction D below, report. The report shall contain the numbers by any bank not subject to Instruction B, may and captions of all items required to be anbe incorporated by reference in answer or parswered, but the text of such items may be tial answer to any item of this form. In addiomitted if the answers with respect thereto are tion, any financial statements contained in any prepared in the manner specified in section such annual report may be incorporated by 206.4(s) of this Part. Particular attention should reference if such financial statements substanbe given to the definitions in section 206.2 and tially meet the requirements of this form. the general requirements in section 206.4 of this D. Annual reports to stockholders. Every Part. Except as otherwise stated, the informabank that files an annual report on this form tion required shall be given as of the end of the shall furnish to the Board for its information bank's fiscal year, or as of the latest practicable eight copies of any annual report to security date subsequent thereto. holders covering such registrant bank's latest B. Reports by banks filing proxy statements fiscal year, unless copies thereof are furnished and statements where management does not to the Board pursuant to section 206.5 of this solicit proxies. Items 4 through 6 shall not Part. Such report shall be mailed to the Board be restated or answered by any bank that, since not later than the date on which it is first sent the close of its fiscal year, has filed with the or given to security holders, but shall not be Board, with respect to an election of directors, deemed to be "filed" with the Board or othera proxy statement or statement where managewise subject to the liabilities of section 18 of ment does not solicit proxies pursuant to section the Act, except to the extent that the bank spe- 206.5(a) of this Part. The incorporation of cifically requests that it be treated as a part of such Statement by reference in answer to such its annual report on this form or incorporates items is not required. Any financial statements it herein by reference. If no annual report is contained in such Statement or in an annual submitted to security holders for the bank's report to security holders furnished to the Board latest fiscal year, the Board shall be so advised. pursuant to section 206.5(c) of this Part may be incorporated by reference if such financial state- INFORMATION REQUIRED IN REPORT ments substantially meet the requirements of this form. Item 1. Securities registered. As to each class Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 FEDERAL RESERVE BULLETIN • JANUARY 1970 of securities of the bank that is registered pur- approximate amount of such securities owned suant to section 12 of the Act, state the title of of record but not owned beneficially, the apsuch class, the name of the exchange, if any, on proximate amount owned beneficially and the which registered, and the number of holders of percentage of outstanding voting securities reprecord of such class. resented by the amount so owned in each such manner. Item 2. Parents and subsidiaries of the bank. Furnish a list or diagram showing the relation- Instruction. To the extent that the information reship of the bank to all parents and subsidiaries, quired by this item is given in answer to Item 2, a and as to each person named indicate the per- reference to such item will suffice. centage of voting securities owned, or other Item 5. Directors of bank. Furnish the folbasis of control, by its immediate parent. lowing information, in tabular form to the extent practicable, with respect to each director Instructions. 1. This item need not be answered if there has been no change in the list or diagram as of the bank: last previously reported. (a) Name each such director, state the date 2. The list or diagram shall include the bank and shall be so prepared as to show clearly the relation- on which his present term of office will expire ship of each person named to the bank and to the and list all other positions and offices with the other persons named. If any person is controlled by bank presently held by him. means of the direct ownership of its securities by two or more persons, so indicate by appropriate cross (b) State his present principal occupation or reference. employment and give the name and principal 3. Designate by appropriate symbols (a) subsidibusiness of any corporation or other organizaaries for which separate financial statements are filed; (b) subsidiaries included in the respective consolidated tion in which such employment is carried on. If financial statements; and (c) other subsidiaries, indi- not previously reported, furnish similar inforcating briefly why statements of such subsidiaries are mation as to all of his principal occupations or not filed. employments during the last five years. 4. Indicate the name of the country in which each foreign subsidiary was organized. (c) State, as of the most recent practicable 5. The names of particular subsidiaries may be date, the approximate amount of each class of omitted if the unnamed subsidiaries, considered in the equity securities of the bank, or any of its aggregate as a single subsidiary, would not constitute a significant subsidiary. parents or subsidiaries, "beneficially owned" 6. A person, approximately 50 per cent of whose (as defined in section 2O6.2(ff)) directly or invoting securities are owned, directly or indirectly, by directly by him. If he is not the beneficial owner the bank, and approximately 50 per cent of whose of any such securities, make a statement to that voting securities are owned, directly or indirectly, by another person, shall be considered a subsidiary for effect. the purpose of this item. Item 6. Remuneration of director and officers and related matters. Set forth the same infor- Item 3. Changes hi business. Describe briefly mation as to remuneration of officers and direcany material changes during the fiscal year, tors and their transactions with management not previously reported, in the business of the and others as is required to be furnished by bank and its subsidiaries. Item 7 of Form F-5. Item 4. Principal holders of voting securities. Item 7. Financial statements and exhibits. If, to the knowledge of the bank, any person List below all financial statements and exhibits individually, or together with his associates, filed as a part of the annual report: owns of record or beneficially more than 10 per cent of the outstanding voting securities of (a) Financial statements. the bank, name each such person, state the (b) Exhibits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 47 SIGNATURES consolidated balance sheets as of the close of the last two fiscal years of the bank and veri- Pursuant to the requirements of the Securified consolidated statements of income for such ties Exchange Act of 1934, the bank has duly fiscal years. caused this annual report to be signed on its 3. Separate statements of unconsolidated behalf by the undersigned, thereunto duly ausubsidiaries and other persons. There shall be thorized. filed such other verified financial statements with respect to unconsolidated subsidiaries and (Name of bank) other persons as are material to a proper understanding of the financial position and re- Date By sults of operations of the total enterprise. (Name and title of signing officer) 4. Filing of other statements in certain cases. The Board may, upon the request of INSTRUCTIONS AS TO FINANCIAL the bank and where consistent with the pro- STATEMENTS tection of investors, permit the omission of one or more of the statements herein required These instructions specify the balance sheets or the filing in substitution therefor of approand statements of income required to be filed priate statements of comparable character. as a part of annual reports on this form. Sec- The Board may also require the filing of other tion 206.7 of this Part governs the verification, statements in addition to, or in substitution for, form, and content of the balance sheets and the statements herein required in any case statements of income required, including the where such statements are necessary or approbasis of consolidation, and prescribes the statepriate for an adequate presentation of the ment of changes in capital accounts and the financial condition of any person whose finanschedules to be filed in support thereof. cial statements are required, or whose state- 1. Financial statements of the bank, (a) ments are otherwise necessary for the protec- There shall be filed for the bank, in compara- tion of investors. tive columnar form, verified balance sheets as of the close of the last two fiscal years and INSTRUCTIONS AS TO EXHIBITS verified statements of income for such fiscal years. Subject to provisions regarding incorpora- (b) Notwithstanding paragraph (a), the indi- tion by reference, the following exhibits shall vidual financial statements of the bank may be be filed as part of the report: omitted if consolidated statements of the bank 1. Copies of all amendments or modificaand one or more of its subsidiaries are filed. tions, not previously filed, to all exhibits pre- 2. Consolidated statements. There shall be viously filed (or copies of such exhibits as filed for the bank and its majority-owned (i) amended or modified). bank premises subsidiaries, (ii) subsidiaries op- 2. Copies of all documents of the character erating under the provisions of section 25 or required to be filed as an exhibit to an original section 25(a) of the Federal Reserve Act form for registration of securities of a bank ("Agreement Corporations" and "Edge Act which have been executed or otherwise put into Corporations"), and (iii) significant subsidiar- effect during the fiscal year and not previously ies, in comparative columnar form, verified filed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 FEDERAL RESERVE BULLETIN a JANUARY 1970 (Revised Dec. 31, 1969) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FORM F-4 QUARTERLY REPORT OF (Name of bank) (City and State) 3 months Fiscal year to date ending (— months ending ) 19 19 19 19 (current year) (prior year) (current year) (prior year) Item 1. Operating income: (a) Interest and fees on loans (b) Interest and dividends on securities (c) Other operating income (d) Total operating income 2. Operating expenses: (a) Salaries and other compensation (b) Interest expense (c) Other operating expenses (d) Total operating expenses 3. Income before income taxes and securities gains (losses) 4. Applicable income taxes 5. Income before securities gains (losses) 6. Net security gains (losses), less related tax effect 7. Net income Pursuant to the requirements of the Securities Exchange Act of 1934, the bank has duly caused this quarterly report to be signed on its behalf by the undersigned, thereunto duly authorized. (Name of bank) Date By (Name and title of signing officer) (a) Use of Form F-4. Form F-4 is a guide for use sidered necessary or appropriate. Amounts may be in preparation of the quarterly report to be filed with stated in thousands of dollars if a notation to that the Board. effect is made. (b) Persons for whom the information is to be (d) Incorporation by reference to published stategiven. The required information is to be given as to ments. If the bank makes available to its stockholders the registrant bank or, if the bank files consolidated or otherwise publishes, within the period prescribed financial statements with the annual reports filed with for filing the report, a financial statement containing the Board, it shall cover the bank and its consolidated the information required by this form, such informasubsidiaries. If the information is given as to the bank tion may be incorporated by reference to such puband its consolidated subsidiaries, it need not be given lished statement if copies thereof are filed as an exseparately for the bank. hibit to this report. (c) Presentation of information. The form calls (e) Extraordinary items. If present with respect to only for the items of information specified. It is not any interim period reported herein, extraordinary necessary to furnish a formal statement of income. items less applicable income tax effect shall be ap- The information is not required to be verified (see propriately segregated and included in the determinasection 206.7(b) of this Part). The report may carry a tion of net income. (See Form F-9B, Statement of notation to that effect and any other qualification con- Income.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 49 (Revised Dec. 31, 1969) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FORM F-5 PROXY STATEMENT; STATEMENT WHERE MANAGEMENT DOES NOT SOLICIT PROXIES GENERAL INSTRUCTIONS waiver of his appraisal or similar rights and whether a vote against a proposal will be deemed to satisfy Each Statement required under section any notice requirements under State law with respect to appraisal rights. If the State law is unclear, state 206.5(a) of this Part shall, to the extent appliwhat position will be taken in regard to those matters. cable, include the information called for under Item 3. Persons making the solicitation, (a) each of the items below. In the preparation of Solicitations not subject to section 206.5(i). the Statement, particular attention should be (1) If the solicitation is made by the mangiven to the definitions in section 206.2 of this agement of the bank, so state. Give the name Part. of any director of the bank who has informed This form is not to be used as a blank form the management in writing that he intends to to be filled in nor is it intended to prescribe a oppose any action intended to be taken by the form for presentation of material in the Statemanagement and indicate the action which he ment. Its purpose is solely to prescribe the inintends to oppose. formation required to be set forth in the State- (2) If the solicitation is made otherwise ment; any additional information that managethan by the management of the bank, so state ment or the soliciting persons deem appropriate and give the names of the persons by whom may be included. and the persons on whose behalf it is made. INFORMATION REQUIRED IN (3) If the solicitation is to be made other- STATEMENT wise than by the use of the mails, describe the methods to be employed. If the solicitation is Item 1. Revocabilify of proxy. State whether to be made by specially engaged employees or the person giving the proxy has the power to paid solicitors, state (i) the material features of revoke it. If the right of revocation before the any contract or arrangement for such solicitaproxy is exercised is limited or is subject to tion and identify the parties, and (ii) the cost compliance with any formal procedure, briefly or anticipated cost thereof. describe such limitation or procedure. (4) State the names of the persons by Item 2. Dissenters' rights of appraisal. Outwhom the cost of solicitation has been or will line briefly the rights of appraisal or similar be borne, directly or indirectly. rights of dissenters with respect to any matter (b) Solicitations subject to section 206.5 (i). to be acted upon and indicate any statutory (1) State by whom the solicitation is procedure required to be followed by dissenting made and describe the methods employed and security holders in order to perfect such rights. to be employed. Where such rights may be exercised only within a limited time after the date of the adoption of (2) If regular employees of the bank or a proposal, the filing of a charter amendment any other participants in a solicitation have or other similar act, state whether the person been or are to be employed to solicit security solicited will be notified of such date. holders, describe the class or classes of employees to be so employed, and the manner and Instruction. Indicate whether a security holder's failure to vote against a proposal will constitute a nature of their employment for such purpose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 FEDERAL RESERVE BULLETIN a JANUARY 1970 (3) If specially engaged employees, repre- son who would be a participant in a solicitation sentatives, or other persons have been or are to for purposes of section 206.5(i), as defined in be employed to solicit security holders, state subparagraph 2(i) (c), (d), (e), and (/) (i) the material features of any contract or thereof, shall be deemed a person on whose arrangement for such solicitation and identify behalf the solicitation is made for purposes of the parties, (ii) the cost or anticipated cost this paragraph (a). thereof, and (iii) the approximate number of (3) Each nominee for election as a direcsuch employees or employees of any other per- tor of the bank. son (naming such other person) who will (4) Each associate of the foregoing persolicit security holders. sons. (4) State the total amount estimated to Instruction. Except in the case of a solicitation subbe spent and the total expenditures to date for, ject to section 206.5 of this Part made in opposition to another solicitation subject to section 206.5 of this in furtherance of, or in connection with, the Part, this sub-item (a) shall not apply to any interest solicitation of security holders. arising from the ownership of securities of the bank where the security holder receives no extra or special (5) State by whom the cost of the solicibenefit not shared on a pro rata basis by all other tation will be borne. If such cost is to be borne holders of the same class. initially by any person other than the bank, (b) Solicitations subject to section 206.5 (i). state whether reimbursement will be sought (1) Describe briefly any substantial interfrom the bank, and, if so, whether the ques- est, direct or indirect, by security holdings or tion of such reimbursement will be submitted otherwise, of each participant, as defined in to a vote of security holders. section 206.5 (i) (2) (i) (b), (c), (d), and Instruction. With respect to solicitations subject to (e), in any matter to be acted upon at the section 206.5(i), costs and expenditures within the meeting, and include with respect to each parmeaning of this Item 3 shall include fees for attorneys, ticipant the information, or a fair and adequate accountants, public relations or financial advisers, solicitors, advertising, printing, transportation, litiga- summary thereof, required by Items 2(a), tion, and other costs incidental to the solicitation, 2(d), 3, 4(b), and 4(c) of Form F-6. except that the bank may exclude the amounts of such costs represented by the amount normally expended (2) With respect to any person named in for a solicitation for an election of directors in the answer to Item 6(b), describe any substantial absence of a contest, and costs represented by salaries interest, direct or indirect, by security holdings and wages of regular employees and officers, provided a statement to that effect is included in the or otherwise, that he has in any matter to be proxy statement. acted upon at the meeting, and furnish the in- Item 4. Interest of certain persons in matters formation called for by Item 4(b) and (c) of to be acted upon, (a) Solicitations not subject Form F-6. to section 206.5 (i). Describe briefly any sub- Item 5. Voting securities and principal holdstantial interest, direct or indirect, by security ers thereof, (a) State, as to each class of voting holdings or otherwise, of each of the following securities of the bank entitled to be voted at the persons in any matter to be acted upon, other meeting, the number of shares outstanding and than elections to office: the number of votes to which each class is (1) If the solicitation is made on behalf entitled. of management, each person who has been a (b) Give the date as of which the record of director or officer of the bank at any time since security holders entitled to vote at the meeting the beginning of the last fiscal year. will be determined. If the right to vote is not (2) If the solicitation is made otherwise limited to security holders of record on that than on behalf of management, each person on date, indicate the conditions under which other whose behalf the solicitation is made. Any per- security holders may be entitled to vote. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 51 (c) If action is to be taken with respect to (1) Name each such person, state when the election of directors and if the persons his term of office or the term of office for which solicited have cumulative voting rights, make a he is a nominee will expire, and all other posistatement that they have such rights and state tions and offices with the bank presently held briefly the conditions precedent to the exercise by him, and indicate which persons are nomthereof. inees for election as directors at that meeting. (d) If to the knowledge of the persons on (2) State his present principal occupation whose behalf the solicitation is made, any peror employment and give the name and prinson, individually, or together with his associpal business of any corporation or other ciates, owns of record or beneficially more than organization in which such employment is 10 per cent of the oustanding voting securities carried on. Furnish similar information as to of the bank, name such person or persons, all of his principal occupations or employments state the approximate amount of such securities during the last five years, unless he is now a owned of record but not owned beneficially, director and was elected to his present term and the approximate amount owned benefiof office by a vote of security holders at a cially, and the percentage of outstanding voting meeting with respect to which a proxy statesecurities represented by the amount of securiment or statement where management does not ties so owned in each such manner. solicit proxies was submitted to security hold- (e) If to the knowledge of the persons on ers pursuant to section 206.5(a) of this Part. whose behalf the solicitation is made, a change in control of the bank has occurred since (3) If he is or has previously been a the beginning of its last fiscal year, state director of the bank state the period or periods the name of the person or persons who ac- during which he has served as such. quired such control, the basis of such control, (4) State, as of the most recent practicathe date and a description of the transaction ble date, the approximate amount of each class or transactions in which control was acquired of equity securities of the bank, or any of its and the percentage of voting securities of the parents or subsidiaries, "beneficially owned" bank now owned by such person or persons. (as denned in section 206.2(ff)) directly or in- (f) Describe any contractual arrangements, directly by him. If he disclaims beneficial including any pledge of securities of the bank ownership of any such securities, make a stateor any of its parents, known to the persons on ment to that effect. whose behalf the solicitation is made, the op- (b) If any nominee for election as a director eration of the terms of which may at a subis proposed to be elected pursuant to any arsequent date result in a change in control of rangement or understanding between the nomithe bank. nee and any other person or persons, except Instruction. Paragraph (f) does not require a dethe directors and officers of the bank acting scription of ordinary default provisions contained in the charter, trust indentures or other governing instru- solely in that capacity, name such other person ments relating to securities of the bank. or persons and describe briefly such arrange- Item 6. Nominees and directors, (a) If action ment or understanding. is to be taken with respect to the election of di- (c) If fewer nominees are named than the rectors, furnish the following information, in number fixed by or pursuant to the governing tabular form to the extent practicable, with instruments, state (1) the reasons for this prorespect to each person nominated for election as a director and each other person whose term cedure, and (2) that the proxies cannot be of office as a director will continue after the voted for a greater number of persons than meeting: the number of nominees named. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 FEDERAL RESERVE BULLETIN a JANUARY 1970 Item 7. Remuneration and other transactions ing the period specified. However, information need with management and others. Furnish the in- not be given for any portion of the period during which such person was not a director or officer. formation called for by this item if action is to 2. The information is to be given on an accrual be taken with respect to (i) the election of basis, if practicable. The tables required by this paradirectors, (ii) any bonus, profit sharing or graph and paragraph (b) may be combined if the bank so desires. other remuneration plan, contract or arrange- 3. Do not include remuneration paid to a partnerment in which any director, nominee for elecship in which any director or officer was a partner. tion as a director, or officer of the bank will But see paragraph (f) below. participate, (iii) any pension or retirement (b) Furnish the following information, in plan in which any such person will participate, substantially the tabular form indicated, as to or (iv) the granting or extension to any such all pension or retirement benefits proposed to person of any options, warrants, or rights to be paid under any existing plan in the event of purchase any securities, other than warrants or retirement at normal retirement date, directly rights issued to security holders, as such, on a or indirectly, by the bank or any of its subsidpro rata basis. However, if the solicitation is iaries to each director or officer named in made on behalf of persons other than the man- answer to paragraph (a) (1): agement, the information required need be furnished only as to nominees for election as (B) (C) directors and as to their associates. (A) Amount set Estimated Name of aside or accrued annual benefits (a) Furnish the following information in individual during bank's upon retirement substantially the tabular form indicated below last fiscal year as to all direct remuneration paid by the bank and its subsidiaries during the bank's latest fiscal year to the following persons for services in all capacities: (1) Each director of the bank whose Instructions. 1. Column (B) need not be answered aggregate direct remuneration exceeded $30,with respect to payments computed on an actuarial 000, and each of the two highest paid officers basis under any plan which provides for fixed benefits of the bank whose aggregate direct remunera- in the event of retirement at a specified age or after a specified number of years of service. tion exceeded that amount, naming each such 2. The information called for by Column (C) may director and officer. be given in a table showing the annual benefits pay- (2) All directors and officers of the bank able upon retirement to persons in specified salary classifications. as a group, without naming them, but stating 3. In the case of any plan (other than those specithe number of persons included. fied in Instruction 1) where the amount set aside each year depends upon the amount of earnings of the bank (A) (B) (C) or its subsidiaries for such year or a prior year (or Name of Capacities Aggregate where otherwise impracticable to state the estimated individual in which direct or number remuneration remuneration annual benefits upon retirement) there shall be of persons was received set forth, in lieu of the information called for by in group Column (C), the aggregate amount set aside or accrued to date, unless impracticable to do so, in which case the method of computing such benefits shall be stated. In addition, furnish a brief description of the material terms of the plan, including the method used in computing the bank's contribution, and the amount set aside or accrued during the bank's last fiscal year for all officers and directors as a Instructions. 1. This item applies to any person who group, indicating the number of persons in such was a director or officer of the bank at any time dur- group without naming them. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 53 (c) Describe briefly all remuneration pay- Instructions. 1. The extension, regranting, or material amendment of options shall be deemed the ments (other than payments reported under granting of options within the meaning of this paraparagraph (a) or (b) of this item) proposed graph. to be made in the future, directly or indirectly, 2. This item need not be answered with respect to by the bank or any of its subsidiaries pursuant options granted, exercised, or outstanding, as may be specified therein, where the total market value (i) to any existing plan or arrangement to (i) each on the granting date of the securities called for by all director or officer named in answer to para- options granted during the period specified, (ii) on the graph (a)(l), naming each such person, and dates of purchase of all securities purchased through the exercise of options during the period specified, or (ii) all directors and officers of the bank as a (iii) as of the latest practicable date of the securities group, without naming them. called for by all options held at such time, does not exceed $10,000 for any officer or director named in Instruction. Information need not be included as to answer to paragraph (a) (1), or $30,000 for all officers payments to be made for, or benefits to be received and directors as a group. from, group life or accident insurance, group hospitali- 3. The information for all directors and officers as zation, or similar group payments or benefits. If it is a group regarding market value of the securities on impractiable to state the amount of remuneration the granting date of the options and on the purchase payments proposed to be made, the aggregate amount date may be given in the form of price ranges for set aside or accrued to date in respect of such payeach calendar quarter during which options were ments shall be stated, together with an explanation of granted or exercised. the basis for future payments. (e) If to the knowledge of management any (d) Furnish the following information as to indebtedness to the bank has arisen since the all options to purchase securities, from the beginning of the bank's last fiscal year under bank or any of its subsidiaries, which were section 16(b) of the Securities Exchange Act granted to or exercised by the following perof 1934, as a result of transactions in the sons since the beginning of the bank's last fisbank's stock (or other equity securities) by cal year and as to all options held by such perany director, officer, or security holder named sons as of the latest practicable date: (i) each in answer to Item 5(d), which indebtedness director or officer named in answer to parahas not been discharged by payment, state the graph (a)(l), naming each such person; and amount of any profit realized and whether suit (ii) all directors and officers of the bank as will be brought or other steps taken to recover a group, without naming them: such profit. If, in the opinion of counsel, a (1) As to options granted, state (i) the question reasonably exists as to the recovertitle and amount of securities called for; (ii) the ability of such profit, only facts necessary to prices, expiration dates,and other material prodescribe the transactions, including the prices visions; and (iii) the market value of the seand number of shares involved, need be stated. curities called for on the granting date. (2) As to options exercised, state (i) the (f) Describe briefly, and where practicable title and amount of securities purchased; (ii) state the approximate amount of, any material the aggregate purchase price; and (iii) the ag- interest, direct or indirect, of any of the followgregate market value of the securities pur- ing persons in any material transactions since chased on the date of purchase. the beginning of the bank's last fiscal year, or (3) As to all unexercised options held as of in any material proposed transactions, to which the latest practicable date, regardless of when the bank or any of its subsidiaries was or is to such options were granted, state (i) the title be a party: and aggregate amount of securities called for; (1) Any director or officer of the bank; (ii) the range of option prices; and (iii) the (2) Any nominee for election as a diper share market prices of the securities sub- rector; ject to option, as of the latest practicable (3) Any security holder named in answer date. to Item 5 (d); or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 FEDERAL RESERVE BULLETIN n JANUARY 1970 (4) Any associate of any of the foregoing in this instruction, transactions which are exempted from disclosure pursuant to other instructions to persons. this Item 7(f) may be excluded, Instructions. 1. See Instruction 1 to paragraph (a). (v) The transaction involves services as a bank Include the name of each person whose interest in any depositary of funds, transfer agent, registrar, trustee transaction is described and the nature of the relation- under a trust indenture, or other similar services; ship by reason of which such interest is required to be or described. Where it is not practicable to state the (vi) The interest of the specified person, includapproximate amount of the interest, the approximate ing all periodic installments in the case of any lease amount involved in the transaction shall be indicated. or other agreement providing for periodic install- 2. As to any transaction involving the purchase or ments, does not exceed $30,000. sale of assets by or to the bank or any subsidiary, 6. Information shall be furnished under this paraotherwise than in the ordinary course of business, graph with respect to transactions not excluded above state the cost of the assets to the purchaser and the which involve remuneration, directly or indirectly, to cost thereof to the seller if acquired by the seller any of the specified persons for services in any capacwithin two years prior to the transaction. ity unless the interest of such persons arises solely 3. The instruction to Item 4 shall apply to this item. from the ownership, individually and in the aggregate, 4. No information need be given under this paraof less than a 10 per cent interest in another person graph as to any remuneration or other transaction furnishing the services to the bank or its subsidiaries. reported in response to (a), (b), (c), (d), or (e) of this item. Item 8. Selection of auditors. If action is 5. No information need be given under this para- to be taken with respect to the selection or graph as to any transaction or any interest therein where: approval of auditors, or if it is proposed that (i) The rates of charges invloved in the trans- particular auditors shall be recommended by action are fixed by law or determined by competi- any committee to select auditors for whom tive bids; votes are to be cast, name the auditors and de- (ii) The interest of the specified person in the transaction is solely that of a director of another scribe briefly any direct financial interest or corporation which is a party to the transaction; any material indirect financial interest in the (iii) The specified person is subject to this Item bank or any of its parents or subsidiaries, or 7(f) solely as a director of the bank (or associate any connection during the past three years of a director) and his interest in the transaction is solely that of a director, officer of, and/or owner with the bank or any of its parents or subsidof less than a 10 per cent interest'in, another per- iaries in the capacity of promoter, underwriter, son that is a party to the transaction. voting trustee, director, officer, or employee. (iv) The transaction consists of extensions of credit by the bank in the ordinary course of its Item 9. Bonus, profit-sharing, and other rebusiness that (A) are made on substantially the muneration plans. If action is to be taken with same terms, including interest rates and collateral, as those prevailing at the time for comparable respect to any bonus, profit-sharing, or other transactions with other than specified persons, (B) remuneration plan, furnish the following inforat no time exceed 10 per cent of the equity capital mation: accounts of the bank, or $10 million, whichever is less, and (C) do not involve more than the normal (a) Describe briefly the material features of risk of collectibility or present other unfavorable the plan, identify each class of persons who features. Notwithstanding the foregoing, if aggregate extensions of credit to the specified persons, will participate therein, indicate the approxias a group, exceeded 20 per cent of the equity cap- mate number of persons in each such class and ital accounts of the bank at any time during the state the basis of such participation. preceding year, (1) the aggregate amount of such extensions of credit shall be disclosed, and (2) a (b) State separately the amounts which statement shall be included, to the extent applicable, that the bank has had, and expects to have would have been distributable under the plan in the future, banking transactions in the ordinary during the last fiscal year of the bank (1) to course of its business with directors, officers, prindirectors and officers, and (2) to employees, if cipal stockholders, and their associates, on the same terms, including interest rates and collateral on the plan had been in effect. loans, as those prevailing at the same time for comparable transactions with others. For the pur- (c) State the name and position with the pose of determining "aggregate extensions of credit" bank of each person specified in Item 7(a) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 55 who will participate in the plan and the amount (b) State (1) the approximate total amount which each such person would have received necessary to fund the plan with respect to past under the plan for the last fiscal year of the services, the period over which such amount is bank if the plan had been in effect. to be paid, and the estimated annual payments (d) Furnish such information, in addition necessary to pay the total amount over such to that required by this item and Item 7, as period, (2) the estimated annual payment to may be necessary to describe adequately the be made with respect to current services, and (3) the amount of such annual payments to provisions already made pursuant to all bonus, be made for the benefit of (i) directors and profit sharing, pension, retirement, stock opofficers, and (ii) employees. tion, stock purchase, deferred compensation, or other remuneration or incentive plans, now (c) State (1) the name and position with in effect or in effect within the past 2 years, the bank of each person specified in Item 7(a) for (i) each director or officer named in an- who will be entitled to participate in the plan, swer to Item 7(a) who may participate in the (2) the amount which would have been paid plan to be acted upon; (ii) all directors and or set aside by the bank and its subsidiaries for officers of the bank as a group, if any director the benefit of such person for the last fiscal or officer may participate in the plan, and year of the bank if the plan had been in effect, (iii) all employees, if employees may partici- and (3) the amount of the annual benefits estipate in the plan. mated to be payable to such person in the event of retirement at normal retirement date. (e) If the plan to be acted upon can be amended otherwise than by a vote of stock- (d) Furnish such information, in addition holders to increase the cost thereof to the bank to that required by this item and Item 7, as or to alter the allocation of the benefits as be- may be necessary to describe adequately the tween the groups specified in (b), state the na- provisions already made pursuant to all bonus, ture of the amendments which can be so made. profit sharing, pension, retirement, stock option, stock purchase, deferred compensation, or (f) If action is to be taken with respect to other remuneration or incentive plans, now in the amendment or modification of an existing effect or in effect within the past 2 years, for plan, this item shall be answered with respect (i) each director or officer named in answer to the plan as proposed to be amended or to Item 7(a) who may participate in the plan modified and shall indicate any material difto be acted upon; (ii) all directors and officers ferences from the existing plan. of the bank as a group, if any director or offi- Instruction. If the plan is set forth in a formal cer may participate in the plan, and (iii) all plan, contract, or arrangement, three copies thereof shall be filed with the Board at the time preliminary employees, if employees may participate in the copies of the Statement are filed pursuant to section plan. 206.5(f). (e) If the plan to be acted upon can be Item 10. Pension and retirement plans. If amended otherwise than by a vote of stockaction is to be taken with respect to any pen- holders to increase the cost thereof to the bank sion or retirement plan, furnish the following or alter the allocation of the benefits as beinformation: tween the groups specified in (b) (3), state the (a) Describe briefly the material features of nature of the amendments which can be so the plan, identify each class of persons who made. will be entitled to participate therein, indicate (f) If action is to be taken with respect to the approximate number of persons in each the amendment or modification of an existing such class, and state the basis of such partici- plan, this item shall be answered with respect pation. to the plan as proposed to be amended or mod- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 FEDERAL RESERVE BULLETIN • JANUARY 1970 ified and shall indicate any material differences swer to Item 7 (a) who may participate in the from the existing plan. plan to be acted upon; (ii) all directors and officers of the bank as a group, if any director Instructions. 1. The information called for by paragraph (b) (3) or (c) (2) need not be given as to pay- or officer may participate in the plan, and ments made on an actuarial basis pursuant to any (iii) all employees, if employees may particigroup pension plan which provides for fixed benefits pate in the plan. in the event of retirement at a specified age or after a specified number of years of service. Instruction. 1. Paragraphs (b) and (c) do not apply 2. The instruction to Item 9 shall apply to this item. to warrants or rights to be issued to security holders as such on a pro rata basis. Item 11. Options, warrants, or rights. If 2. The Instruction to Item 9 shall apply to paraaction is to be taken with respect to the grant- graph (c) of this item. ing, extension or amendment of any options, 3. Include in the answer to paragraph (c) as to warrants, or rights to purchase securities of the each director or officer named in answer to Item 7(a) and as to all directors and officers as a group (i) the bank or any subsidiary, furnish the following amount of securities acquired during the past two information: years through the exercise of options granted during the period or prior thereto, (ii) the amount of securi- (a) State (i) the title and amount of securities sold during such period of the same class as those ties called for or to be called for by such op- acquired through the exercise of such options, and tions, warrants, or rights; (ii) the prices, ex- (iii) the amount of securities subject to all unexercised options held as of the latest practicable date. piration dates, and other material conditions upon which the options, warrants, or rights Item 12. Authorization or issuance of secumay be exercised; and (iii) in the case of op- rities otherwise than for exchange. If action is tions, the Federal income tax consequences of to be taken with respect to the authorization the issuance and exercise of such options to or issuance of any securities otherwise than the recipient and to the bank. in exchange for outstanding securities of the (b) State separately the amount of options, bank, furnish the following information: warrants, or rights received or to be received (a) State the title and amount of securities by the following persons, naming each such to be authorized or issued. person: (i) each director or officer named in (b) Furnish a description of the material answer to Item 7(a); (ii) each nominee for provisions of the securities such as would be election as a director of the bank; (iii) each required in a registration statement filed purassociate of such directors, officers, or nomi- suant to this Part. If the terms of the securities nees; and (iv) each other person who received cannot be stated or estimated with respect to or is to receive 5 per cent or more of such any or all of the securities to be authorized, options, warrants or rights. State also the total because no offering thereof is contemplated in amount of such options, warrants, or rights the proximate future, and if no further authorireceived or to be received by all directors and zation by security holders for the issuance officers of the bank as a group, without naming thereof is to be obtained, it should be stated them. that the terms of the securities to be author- (c) Furnish such information, in addition ized, including dividend or interest rates, conto that required by this item and Item 7, as version prices, voting rights,, redemption prices, may be necessary to describe adequately the maturity dates, and similar matters will be provisions already made pursuant to all bonus, determined by the board of directors of the profit sharing, pension, retirement, stock op- bank. If the securities are additional shares of tion, stock purchase, deferred compensation, common stock of a class outstanding, the deor other remuneration or incentive plans, now scription may be omitted. in effect or in effect within the past 2 years, (c) Describe briefly the transaction in which for (i) each director or officer named in an- the securities are to be issued, including a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 57 statement as to (1) the nature and approxi- in the particular case to disclose adequately the mate amount of consideration received or to nature and effect of the proposed action. be received by the bank, and (2) the approxi- (e) Outline briefly any other material feamate amount devoted to each purpose so far tures of the proposed modification or exchange. as determinable, for which the net proceeds (f) The instruction to Item 9 shall apply to have been or are to be used. If it is impracticathis item. ble to describe the transaction in which the securities are to be issued, indicate the purpose Item 14. Mergers, consolidations, acquisiof the authorization of the securities, and state tions, and similar matters. If action is to be (i) whether further authorization for the issu- taken with respect to any plan for (i) the ance of the securities by a vote of security merger or consolidation of the bank into or holders will be solicited prior to such issuance, with any other person, or of any other person and (ii) whether present security holders will into or with the bank, (ii) the acquisition by have preemptive rights to purchase such secu- the bank or any of its subsidiaries of securities rities. of another bank, (iii) the acquisition by the bank of any other going business or of the Item 13. Modification or exchange of securiassets thereof, (iv) the sale or other transfer ties. If action is to be taken with respect to the of all or any substantial part of the assets of modification of any class of securities of the the bank, or (v) the voluntary liquidation or bank, or the issuance or authorization for issudissolution of the bank: ance of securities of the bank in exchange for outstanding securities of the bank, furnish the (a) Outline briefly the material features of following information: the plan. State the reasons therefore and the (a) If outstanding securities are to be modi- general effect thereof upon the interests of exfied, state the title and amount thereof. If secu- isting security holders. If the plan is set forth rities are to be issued in exchange for out- in a written document, file three copies thereof standing securities, state the title and amount with the Board when preliminary copies of of securities to be so issued, the title and the Statement are filed pursuant to section amount of outstanding securities to be ex- 206.5 (f). changed therefor, and the basis of the ex- (b) Furnish the following information as to change. the bank and each person (other than sub- (b) Describe any material differences be- sidiaries substantially all of the stock of which tween the outstanding securities and the modi- is owned by the bank) which is to be merged fied or new securities with respect to any of the into the bank, or into or with which the bank matters concerning which information would is to be merged or consolidated, or the business be required in the description of the securities or assets of which are to be acquired, or which in a registration statement filed pursuant to is the issuer of securities to be acquired by the this Part. bank or any of its subsidiaries in exchange for (c) State the reasons for the proposed modi- all or a substantial part of its assets: fication or exchange and the general effect (1) A brief description of the business thereof upon the rights of existing security and property of each such person in substanholders. tially the manner required by Items 3 and 4 (d) Furnish a brief statement as to arrears of Form F-l. in dividends or as to defaults in principal or interest with respect to the outstanding securi- (2) A brief statement as to defaults in ties which are to be modified or exchanged and principal or interest with respect to any securisuch other information as may be appropriate ties of the bank or of such person, and as to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 FEDERAL RESERVE BULLETIN a JANUARY 1970 the effect of the plan thereon and such other the balance sheets included in the Stateinformation as may be appropriate in the par- ment. ticular case to disclose adequately the nature The comparative per share data shall be and effect of the proposed action. presented on a historical and pro forma basis (3) Such information with respect to the (except dividends which are to be furnished on proposed management of the surviving bank as historical basis only) and equated to a comwould be required by Items 6 and 7 of this mon basis in exchange transactions. Form F-5. Information concerning remunera- (8) To the extent material for the exertion of management may be projected for the cise of prudent judgment, the historical and current year based on remuneration actually pro forma earnings data specified in (5), (6), paid or accrued by each of the constituent perand (7) above for the latest available interim sons during the last calendar year. If signifiperiod of the current and prior fiscal years. cantly different, proposed compensation ar- Instructions. 1. Historical statements of income in rangements should also be described. their entirety, as required by Item 15, may be furnished (4) A tabular presentation of the existing in lieu of the summary of earnings specified in paragraph (5). If summary earnings information is preand pro forma capitalization. sented, include, as a minimum, operating revenues, (5) In columnar form, for each of the operating expenses, income before income taxes and security gains (losses), applicable income taxes, inlast three fiscal years, a historical summary of come before securities gains (losses), securities gains earnings. Such summary is to be concluded by (losses), and net income. The summary shall reflect indicating per share amounts of income before retroactive adjustments of any material items affecting the comparability of the results. securities gains (losses), net income, and 2. In connection with any interim period or periods dividends declared for each period reported. between the end of the last fiscal year and the bal- (Extraordinary items, if any, should be appro- ance sheet date, and any comparable prior period, a priately reported and per share amounts of statement shall be made that all adjustments necessary to a fair statement of the results for such interim securities gains (losses) should be included.) period or periods have been included, and results of (6) In columnar form, for each of the the interim period for the current year are not necessarily indicative of results for the entire year. In last three fiscal years, a combined pro forma addition, there shall be furnished in such cases, as summary of earnings, as appropriate in the supplemental information but not as a part of the circumstances, similar in structure to the his- proxy statement, a letter describing in detail the nature and amount of any adjustments, other than nortorical summary of earnings. If the transaction mal recurring accruals, entering into the determination establishes a new basis of accounting for of the results shown. assets of any of the persons included therein, 3. The information required by this Item 14(b) is the pro forma summary of earnings shall be required in a Statement of the "acquiring" or "surviving" bank only where a "significant" merger or acfurnished only for the most recent fiscal year quisition is to be voted upon. For purposes of this and interim period and shall reflect appropriate item, the term "significant" merger or acquisition shall pro forma adjustments resulting from such new mean a transaction where either (1) the net book value of assets to be acquired or the amount to be basis of accounting. paid therefore exceed 5 per cent of the equity capital (7) A tabular presentation of compara- accounts of the acquiring bank, or (2) in an exchange transaction, the number of shares to be issued exceeds tive per share data of the constitutent banks 5 per cent of the outstanding shares of the acquiring or other persons pertaining to: bank, or (3) gross operating revenues for the last fiscal year of the person to be acquired exceeded S (A)(i) Income before securities gains per cent of the gross operating revenues for the last (losses), (ii) net income, and (iii) divi- fiscal year of the acquiring bank. If less than a "sigdends declared, for each of the last three nificant" merger acquisition is to be voted upon, such information need only be included to the extent necesfiscal years; and sary for the exercise of prudent judgment with res- (B) book value per share, at the date of pect thereto. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 59 (c) As to each class of securities of the (c)Notwithstanding paragraphs (a) and (b) bank, or of any person specified in paragraph above, any or all of such financial statements (b), which is admitted to dealing on a national which are not material for the exercise of prusecurities exchange or with respect to which a dent judgment in regard to the matter to be market otherwise exists, and which will be acted upon may be omitted. Such financial materially affected by the plan, state the high statements are deemed material to the exercise and low sale prices (or, in the absence of trad- of prudent judgment in the usual case involving ing in a particular period, the range of the bid the authorization or issuance of any material and asked prices) for each quarterly period amount of senior securities, but are not within two years. This information may be deemed material in cases involving the authoromitted if the plan involves merely the voluntary ization or issuance of common stock, otherwise liquidation or dissolution of the bank. than in an exchange, merger, consolidation, acquisition, or similar transaction. Item 15. Financial statements, (a) If action (d) The Statement may incorporate by refis to be taken with respect to any matter specierence any financial statements contained in an fied in Items 12, 13, or 14 above, furnish annual report sent to security holders pursuant verified financial statements of the bank and its to section 206.5 (c) with respect to the same subsidiaries such as would be required in a meeting as that to which the Statement relates, registration statement filed pursuant to this provided such financial statements substantially Part. In addition, the latest available interim meet the requirements of this item. date balance sheet and statement of income for the interim period between the end of the Item 16. Action with respect to reports. If action is to be taken with respect to any report last fiscal year and the interim balance sheet of the bank or of its directors, officers, or comdate, and comparable prior period, shall be mittees or any minutes of a meeting of its secufurnished. All schedules, except. Schedule VII rity holders, furnish the following information: —"Allowance for Possible Loan Losses," may be omitted. (a) State whether or not such action is to constitute approval or diapproval of any of the (b) If action is to be taken with respect to matters referred to in such reports of minutes. any matter specified in Item 14 (b), furnish (b) Identify each of such matters which it is for each person specified therein, other than intended will be approved or disapproved, and the bank, financial statements such as would furnish the information required by the approbe required in a registration statement filed priate item or items of this schedule with repursuant to this Part. In addition, the latest spect to each such matter. available interim date balance sheet and statement of income for the interim period between Item 17. Matters not required to be subthe end of the last fiscal year and the interim mitted. If action is to be taken with respect to balance sheet date, and comparable prior any matter which is not required to be subperiod, shall be furnished. However, the fol- mitted to a vote of security holders, state the lowing may be omitted: (1) all schedules, nature of such matter, the reasons for submitting it to a vote of security holders and what except Schedule VII—"Allowance for Possible action is intended to be taken by the manage- Loan Losses"; and (2) statements for a subment in the event of a negative vote on the sidiary, all of the stock of which is owned by matter by the security holders. the bank, that is included in the consolidated statement of the bank and its subsidiaries. Such Item 18. Amendment of charter, by-laws, or statements shall be verified, if practicable. other documents. If action is to be taken with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 FEDERAL RESERVE BULLETIN n JANUARY 1970 respect to any amendment of the bank's char- the substance of each such matter in substanter, by-laws, or other documents as to which tially the same degree of detail as is required information is not required above, state briefly by Items 5 to 18, inclusive, above. the reasons for and general effect of such Item 20. Vote required for approval. As to amendment. each matter which is to be submitted to a vote Item 19. Other proposed action. If action is of security holders, other than elections to to be taken with respect to any matter not office or the selection or approval of auditors, specifically referred to above, describe briefly state the vote required for its approval. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 61 (Revised Dec. 31, 1969) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM FORM F-9: FINANCIAL STATEMENTS A. BALANCE SHEET (Form F-9A) B. STATEMENT OF INCOME (From F-9B) C. STATEMENT OF CHANGES IN CAPITAL ACCOUNTS (Form F-9C) D. SCHEDULES (Form F-9D) GENERAL INSTRUCTIONS omitted, the detailed instructions that relate to applicable items shall be followed. 1. Preparation of forms. The forms for financial statements are not to be used as blank 2. Accrual accounting. Financial statements forms to be filled in but only as guides in the shall generally be prepared on the basis of acpreparation of financial statements. The re- crual accounting whereby all revenues and all quirements with respect to the filing of balance expenses shall be recognized during the period sheets and statements of income are contained earned or incurred regardless of the time rein the instructions as to certain other forms ceived or paid, with certain exceptions: (a) required by this Part. Particular attention where the results would be only insignificantly should be given to the general requirements as different on a cash basis, or (b) where accrual to financial statements in section 206.7 of this is not feasible. Statements with respect to the Part, including paragraphs (e) and (f) thereof, first fiscal year that a bank reports on the acwhich prescribe when statements of changes in crual basis shall indicate clearly, by footnote or capital accounts and schedules will be filed. otherwise, the beginning-of-year adjustments Although inapplicable items specified in the that were necessary and their effect on prior forms for financial statements should be financial statements filed under this Part. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 FEDERAL RESERVE BULLETIN • JANUARY 1970 A. BALANCE SHEET Assets Liabilities 12. Deposits: 1. Cash and due from banks (a) Demand deposits in domestic offices . .. (b) Savings deposits in domestic offices 2. Investment securities: (c) Time deposits in domestic offices (a) U.S. Treasury securities (d) Deposits in foreign offices 13. Federal funds purchased and securities sold (b) Securities of other U.S. Government under agreements to repurchase agencies • and corporations 14. Other liabilities for borrowed money (c) Obligations of States and political sub- 15. Bank's acceptances outstanding 16. Mortgages payable divisions 17. Other liabilities (d) Other securities 18. Total liabilities 19. Minority interests in consolidated subsidiaries 3. Trading account securities Reserves 4. Federal funds sold and securities purchased 20. Allowance for posible loan losses under agreements to resell Capital Accounts 5. Other loans 21. Capital notes and debentures 6. Bank premises and equipment 22. Equity capital: (a) Capital stock: Preferred stock 7. Other real estate owned Common stock (b) Surplus 8. Investments in subsidiaries not consolidated (c) Undivided Profits (d) Reserve for contingencies and other 9. Customers' acceptance liability capital reserves 23. Total capital accounts 10. Other assets 24. Total liabilities, reserves, and capital 11. Total assets mediately upon presentation (including checks ASSETS with a Federal Reserve Bank in process of col- 1. Cash and due from banks, (a) State the lection and checks on hand that will be pretotal of (1) currency and coin (A) owned and sented for payment or forwarded for collection held in the bank's vaults and (B) in transit to on the following business day); (2) Governor from a Federal Reserve Bank; (2) the ment checks and warrants drawn on the Treasbank's total reserve balance with the Federal urer of the United States that are in process Reserve Bank as shown by the bank's books; of collection; and (3) such other items in proc- (3) demand and time balances with other ess of collection, including redeemed United banks; and (4) cash items in process of collec- Staes savings bonds, payable immediately upon tion. presentation in the United States, as are cus- (b) Reciprocal demand balances with banks tomarily cleared or collected by banks as cash in the United States, except those of private items. banks and American branches of foreign (e) Checks drawn on a bank other than banks, shall be reported net. the reporting bank that have been deposited (c) Do not include unavailable balances in the reporting bank (or offices or branches with closed or liquidating banks. Such bal- of such bank) and have been forwarded for ances should be reported in "other assets". collection to other offices or branches of the (d) Cash items in process of collection in- reporting bank are cash items in the process clude: (1) checks in process of collection of collection. drawn on another bank, private bank, or any (f) Do not include commodity or bill-ofother banking institution that are payable im- lading drafts payable upon arrival of goods Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 63 against which drawn, whether or not deposit 3. Trading account securities. State the agcredit therefor has been given to a customer. gregate value at the balance sheet date, of secu- If deposit credit has been given, such drafts rities of all types carried by the bank in a should be reported as "loans"; but if the drafts dealer trading account (or accounts) that are were received by the reporting bank on a col- held principally for resale to customers. Indilection basis they should not be included in the cate parenthetically, or otherwise in a note to reporting bank's statement until such time as financial statements, whether the inventory is the funds have been actually collected. valued at (1) cost, (2) lower of cost or mar- (g) Unposted debits should preferably be ket, or (3) market. If cost basis of valuation deducted from the appropriate deposit liability is used, furnish aggregate market value of the caption. If such items are included hereunder, trading account inventory at the current fiscal the amount shall be stated parenthetically. year balance sheet date. 2. Investment securities, (a) State separately 4. Federal funds sold and securities purbook value of (1) U.S. Treasury securities; chased under agreements to resell, (a) State (2) Securities of other U.S. Government agen- the aggregate value of Federal funds sold and cies and corporations; (3) Obligations of securities purchased under resale agreement or States and political subdivisions; and (4) Other similar arrangements. All securities purchased under transactions of this type should be insecurities owned by the bank; include securities cluded regardless of (1) whether they are pledged, loaned or sold under repurchase called simultaneous purchases and sales, buyagreements and similar arrangements. backs, turnarounds, overnight transactions, de- (b) Book value with respect to investment layed deliveries, etc., and (2) whether the quality securities reported in paragraph (a) transactions are with the same or different inshall be cost adjusted for amortization of prestitutions if the purpose of the transactions is mium and, at the option of the bank, for acto resell identical or similar securities. cretion of discount. There shall be set forth in a note to financial statements (1) the basis (b) Federal funds sold and purchases of seof accounting for book value, and (2) if bond curities under resale agreements should be discount is systematically accrued and amounts reported gross and not netted against purchases to 5 per cent or more of interest and dividends of Federal funds and sales of securities under on investments, the total of accretion income repurchase agreements. and deferred income taxes applied thereto. 5. Other Loans, (a) State the aggregate (c) Include in category (3) of paragraph gross value of all loans including (1) accept- (a) obligations, including warrants and tax ances of other banks and commercial paper anticipation notes, of the States of the United purchased in the open market; (2) acceptances States and their political subdivisions, agen- executed by or for the account of the reporting cies, and instrumentalities; also obligations of bank and subsequently acquired by it through territorial and insular possessions of the United purchase or discount; (3) customers' liability States. Do not include obligations of foreign to the reporting bank on drafts paid under letstates. ters of credit for which the bank has not been (d) Do not include borrowed securities or reimbursed; and (4) "cotton overdrafts" or securities purchased under resale agreements "advances," and commodity or bill-of-lading or similar arrangements. drafts payable upon arrival of goods against Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 FEDERAL RESERVE BULLETIN a JANUARY 1970 which drawn, for which the reporting bank has erty and will revert to the lessor on expiration given deposit credit to customers. of the lease. (b) Include (1) paper rediscounted with (e) Bank premises includes vaults, fixed the Federal Reserve or other banks; and (2) machinery and equipment, parking lots owned paper pledged as collateral to secure bills adjoining or not adjoining the bank premises payable, as marginal collateral to secure bills that are used by customers or employees, and rediscounted, or for any other purpose. potential building sites. (c) Do not include contracts of sale or (f) Equipment includes all movable furniother loans indirectly representing bank prem- ture and fixtures of the bank. ises or other real estate; these should be in- 7. Other real estate owned, (a) State the cluded in "bank premises" or "other real aggregate cost of all real estate owned by the estate". bank that is not a part of bank premises. (d) Do not deduct bona fide deposits ac- (b) With respect to real estate acquired cumulated by borrowers for the payment of through default of a loan, aggregate cost shall loans. include the unpaid balance on the defaulted 6. Bank premises and equipment, (a) State loan plus the bank's out-of-pocket costs in acthe aggregate cost of (1) bank premises owned, quiring clear title to the property. Any adjust- (2) leasehold improvements, and (3) equipments from aggregate cost shall be explained ment less any accumulated depreciation or in a footnote. amortization with respect to such assets. (c) The aggregate market value of all real (b) All fixed assets acquired subsequent to estate owned by the bank that is not a part of December 31, 1959, shall be stated at cost less bank premises shall be set forth in a footnote, accumulated depreciation or amortization. together with an explanation of the method of (c) All fixed assets acquired prior to Janu- determining such market value. ary 1, 1960, that are not presently accounted 8. Investments in subsidiaries not consolifor by the bank on the basis of cost less accudated. State the aggregate investment, includmulated depreciation or amortization, may be ing advances, in subsidiaries not consolidated. stated at book value. Any such assets that are still in use and would not have been fully de- 9. Customers' acceptance liability, (a) State preciated on an acceptable method of account- the liability to the reporting bank of its customing for depreciation if the bank had recorded ers on drafts and bills of exchange that have depreciation on such basis shall be described been accepted by the reporting bank or by briefly in a footnote, together with an explana- other banks for its account and that are outtion of the accounting that was used with re- standing—that is, not held by the bank, on the spect to such assets. reporting date. (If held by the reporting bank, they should be reported as "loans"). (d) The term "leasehold improvements" comprehends two types of situations: (1) where (b) In case a customer anticipates his liathe bank erects a building on leased property; bility to the bank on outstanding acceptances and (2) where a bank occupies leased quarters by paying the bank either the full amount of or uses leased parking lots and appropriately his liability or any part thereof in advance of capitalizes disbursements for vaults, fixed ma- the actual maturity of the acceptance, the bank chinery and equipment directly related to such should decrease the amount of the customer's leased quarters, or resurfacing or other im- liability on outstanding acceptances. If such provements directly related to such parking lots funds are not received for immediate applicathat will become an integral part of the prop- tion to the reduction of the indebtedness to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 65 bank or the receipt thereof does not immedi- (e) Include outstanding drafts (including ately reduce or extinguish the indebtedness, advices or authorizations to charge the bank's then such funds held to meet acceptances must balance in another bank) drawn in the regular be reported in "demand deposits". course of business by the reporting bank on other banks pursuant to customer order. (c) Do not include customer's liability on unused commercial and travelers' letters of (f) Do not include trust funds held in the credit issued under guaranty or against the de- bank's own trust department that the bank posit of security—that is, not issued for money keeps segregated and apart from its general or its equivalent. assets and does not use in the conduct of its business. 10. Other assets. State separately, if material, (1) income earned but not collected; 13. Federal funds purchased and securities (2) prepaid expenses; (3) property acquired sold under agreements to repurchase, (a) for the purpose of direct lease financing; and State the aggregate value of Federal funds pur- (4) any other asset not included in the preced- chased and securities sold under repurchase or ing items. similar arrangements. All securities sold under transactions of this type should be included 11. Total assets. State the sum of all asset regardless of (1) whether they are called simulitems. taneous purchases and sales, buy-backs, turnarounds, overnight transactions, delayed de- LIABILITIES liveries, etc., and (2) whether the transactions 12. Deposits, (a) State separately (1) deare with the same or different institutions if mand deposits in domestic offices of the bank, the purpose of the transactions is to repurchase (2) savings deposits in domestic offices of the identical or similar securities. bank, (3) time deposits in domestic offices of the bank, and (4) deposits in foreign offices. (b) Federal funds purchased and sales of Related unposted debits, if any, should pref- securities under repurchase agreements should erably be deducted from domestic deposists. be reported gross and not netted against sales of Federal funds and purchases of securities (b) The domestic deposit liability categories under resale agreements. shall be segregated in accordance with the Rules and Regulations of the Federal Deposit Insur- 14. Other liabilities for borrowed money. ance Corporation, Part 327.2—Classification State the aggregate amount borrowed by the of Deposits. reporting bank on its own promissory notes, on (c) The term "unposted debit" means a cash notes and bills rediscounted (including commodity drafts rediscounted), or on any other item in the bank's possession drawn on itself instruments given for the purpose of borrowing that has been paid or credited and is chargeable money. against, but has not been charged against, deposit liabilities at the close of the reporting 15. Bank's acceptances outstanding, (a) State period. This term does not include items that the aggregate of unmatured drafts and bills of have been reflected in deposit accounts on the exchange accepted by the reporting bank, or by general ledger, although they have not been some other bank as agent for the reporting bank debited to individual deposit accounts. (other than those reported in "demand de- (d) Reciprocal demand deposit balances posits"), less the amount of such acceptances with banks in the United States, except those acquired by the reporting bank through disof private banks and American branches of count or purchase and held on the reporting foreign banks, shall be reported net. date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 FEDERAL RESERVE BULLETIN a JANUARY 1970 (b) Include bills of exchange accepted by the judgment as to possible loss or value deprereporting bank that were drawn by banks or ciation and (B) has been established through a bankers in foreign countries, or in dependencies charge against income. or insular possessions of the United States, for (b)Any provision for possible loan losses that the purpose of creating dollar exchange as rethe bank establishes as a precautionary measure quired by usage of trade in the respective counthat is in excess of the amount reported in paratries, dependencies, or insular possessions. graph (a) shall not be included in this allowance 16. Mortgages payable, (a) State separately but shall be reported as a contingency reserve— here, or in a note referred to herein, such in- that is, as a segregation of undivided profits. formation as will indicate (1) the general char- Note. Any allowance that (1) represents manageacter of the debt including the rate of interest; ment's judgment as to possible loss or value deprecia- (2) the date of maturity; (3) if the payment tion in investment securities and (2) has been established through an appropriate charge against income of principal or interest is contingent, an approshall be separately stated. Any provision for possible priate indication of such contingency; and (4) security losses that the bank establishes as a precaua brief indication of priority. tionary measure only (such as to reflect normal fluctuations in market value of readily marketable secur- (b) If there are any liens on bank premises ities) shall not be included in this allowance but shall or other real estate owned by the bank or its be reported as a contingency reserve—that is, as a segregation of undivided profits. consolidated subsidiaries which have not been assumed by the bank or its consolidated subsi- CAPITAL ACCOUNTS diaries, report in a footnote the amount thereof 21. Capital notes and debentures. State together with an appropriate explanation. separately here, or in a note referred to herein, 17. Other liabilities. State separately, if each issue or type of obligation and such informaterial, (a) accrued payrolls; (b) accrued mation as will indicate (a) the general characincome tax liability (Federal and State com- ter of each type of debt including the rate of bined); (c) accrued interest; (d) cash divi- interest; (b) the date of maturity (or dates if dends declared but not paid; (e) income col- maturing serially) and call provisions; (c) the lected but not earned; and (f) any other liability aggregate amount of maturities, and sinking not included in Items 12 through 16. fund requirements, each year for the 5 years following the date of the balance sheet; (d) if 18. Total liabilities. State the sum of Items the payment of principal or interest is contin- 12 through 17. gent, an appropriate indication of the nature of 19. Minority interests in consolidated subthe contingency; (e) a brief indication of priorsidiaries. State the aggregate amount of minority; and (f) if convertible, the basis. ity stockholders' interests in capital stock, sur- 22. Equity capital, (a) Capital stock. State plus, and undivided profits of consolidated subfor each class of shares the title of issue, the sidiaries. number of shares authorized, the number RESERVES of shares outstanding and the capital share liability thereof, and, if convertible, 20. Allowance for possible loan losses, (a) the basis of conversion. Show also the dollar State the balance of the loan losses allowance amount, if any, of capital shares subscribed but account at the end of the fiscal year. Include in unissued, and of subscriptions receivable this allowance only (1) any provision that the thereon. bank makes for possible loan losses pursuant to the Treasury tax formula and (2) any (b) Surplus. State the net amount formally amount in excess of the provision taken under transferred to the surplus account on or before such formula that (A) represents management's the reporting date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 67 (c) Undivided profits. State the amount of element of known losses, or losses the amount undivided profits shown by the bank's books. of which can be estimated with reasonable (d) Reserve for contingencies and other accuracy. capital reserves. (4) Reserves for possible security (1) State separately each such reserve losses, reserves for possible loan losses, and and its purpose. other contingency reserves that are established as precautionary measures only shall be in- (2) These reserves constitute amounts cluded in these reserves, as they represent segset aside for possible decrease in the book value regations of "undivided profits". of assets, or for other unforseen or indeterminable liabilities not otherwise reflected on the 23. Total capital accounts. State the total of bank's books and not covered by insurance. Items 21 and 22. (3) As these reserves represent a segre- 24. Total liabilities, reserves and capital. gation of undivided profits, do not include any State the total of Items 18, 19, 20 and 23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 FEDERAL RESERVE BULLETIN • JANUARY 1970 B. STATEMENT OF INCOME 1. Operating Income: (a) Interest and fees on loans (b) Income on Federal funds sold and securities purchased under agreements to resell (c) Interest and dividends on investments: (1) U.S. Treasury securities (2) Securities of other U.S. Government agencies and corporations (3) Obligations of States and political subdivisions (4) Other securities (d) Trust department income (e) Service charges on deposit accounts (f) Other service charges, collection and exchange charges, commissions, and fees (g) Other operating income (h) Total operating income 2. Operating Expenses: (a) Salaries and wages (b) Pensions and other employee benefits (c) Interest on deposits (d) Expenses of Federal funds purchased and securities sold under agreements to repurchase (e) Interest on other borrowed money (f) Interest on capital notes and debentures (g) Occupancy expense of bank premises, net: Gross occupancy expense Less: Rental income (h) Furniture and equipment expense (Including depreciation of $ ) (i) Provision for loan losses (j) Other operating expenses (k) Total operating expenses 3. Income before Income Taxes and Securities Gains (Losses) 4. Applicable Income Taxes 5. Income before Securities Gains (Losses) 6. Net Security Gains (Losses), less related tax effect, $ 7. Net income OR 7. Income before Extraordinary Items 8. Extraordinary Items, less related tax effect, ! 9. Net Income 10. Earnings per common share*: Income before securities gains (losses) Net Income * Per share amount of securities gains (losses) may be stated separately. If extraordinary items are reported, per share amount of income before extraordinary items and per share amount of extraordinary items shall be stated separately. 1. Operating income. State separately: drafts for which the bank has given deposit , , . . ,, , credit to customers, etc. (a) Interest and fees on loans. Also include interest on loan paper that has (1) Include interest, fees and other di nted with Federal Reserve or been re SCOU charges on all assets that are reported on the pledged as collateral to secure other banks or balance sheet as other loans. bills payable or for any other purpose. (2) Include interest on acceptances, com- (3) Include service charges and other mercial paper purchased in the open market, fees on loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 69 (4) Include profits (or losses) resulting (2) This item may be reported on the from the sale of acceptances and commercial cash basis in those instances where the presenpaper at discount rates other than those at tation of the item on the financial statements which such paper was purchased. would not be materially affected thereby. The cash basis may also be used with respect to an (5) Current amortization of premiums on individual trust or estate if accrual of income mortgages or other loans shall be deducted therefrom is not feasible. If any portion of from interest on loans and current accumulatrust department income is not reported on tion of discount on such items shall be added the accrual basis, there shall be a footnote exto interest on loans. plaining the method of reporting and the rea- (b) Income on Federal funds sold and se- son for departing from reporting on the accrual curities purchased under agreements to resell. basis. Include the total gross revenue from Federal (e) Service charges on deposit accounts. Infunds sold and securities purchased under clude amounts charged depositors that fail to agreements to resell. maintain specified minimum deposit balances; (c) Interest and dividends on investments. charges based on the number of checks drawn (1) State separately interest and divi- on and deposits made in deposit accounts; dens from (A) U.S. Treasury securities, (B) charges for account maintenance and for securities and other U. S. Government agencies checks drawn on "no minimum balance" deand corporations, (C) obligations of States posit accounts; return check charges; etc. and political subdivisions, and (D) other se- (f) Other service charges, collection and curities owned by the bank, including securities exchange charges, commissions, and fees. State pledged, loaned, or sold under repurchase the aggregate of other service charges, collecagreements and similar arrangements. tion and exchange charges, commissions, and (2) Include accretion of discount on se- fees. Exclude charges on loans and deposits curities, if any; deduct amortization of pre- and those related to the Trust Department. Do miums on securities. If the reporting bank ac- not include reimbursements for out-of-pocket crues bond discount and such income amounts expenditures made by the bank for the account to 5 per cent or more of the total of interest of customers. If expense accounts were charged and dividends on investments, state in a note to with the amount of such expenditures, the refinancial statements, the amount of accretion imbursements should be credited to the same income and deferred income taxes applicable expense accounts. thereto. (g) Other operating income. (3) When securities are purchased, any (1) Include all operating income not repayment for accrued interest shall not be ported in Items l(a) through l(f). charged to expenses, nor when collected be (2) Include (A) net trading account incredited to earnings. Such interest shall be come consisting of profits and losses, interest, charged to a separate account that will be credand other income and expense related to secuited upon collection of the next interest payrities carried in a dealer trading account or ment. The balance in the account shall be accounts that are held principally for resale shown as "Other assets" in the balance sheet. to customers, but exclude salaries, commis- (d) Trust department income. sions, and other indirect expenses; (B) income (1) Include income from commissions from lease financing; (C) gross rentals from and fees for services performed by the bank in "other real estate" and safe deposit boxes; any authorized fiduciary capacity. (D) net remittable profits (or losses) of for- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 FEDERAL RESERVE BULLETIN ° JANUARY 1970 eign branches and consolidated subsidiaries and related functions. Such compensation shall less any minority interests (unless the report- be included in Item 2(g). ing bank preferably combines or consolidates (5) Do not include amounts paid to legal, each item of income and expense); (E) intermanagement, and investment counsel for proest on time balances with other banks; and fessional services if such counsel are not sala- (F) all other recurring credits (such as misried officers or employees of the bank. Such cellaneous recoveries) and immaterial nonamounts shall be included in Item 2(j). recurring credit items. (b) Pensions and other employee benefits. (3) Do not include rentals from bank (1) Include all supplementary benefits, premises. Such rental income shall be reported other than direct compensation included in in the inset to Item 2 (g). In the event there Item 2(a) accrued during the report period on is a net occupancy income, the income shall behalf of all officers and employees except be shown in parenthesis in Item 2(g). building department personnel (see Item 2 (g)). (4) Itemize (A) net trading account in- (2) Include the bank's own contribution come, (B) net remittable profits (or losses) of to its pension fund; unemployment and Social foreign branches and consolidated subsidiaries Security taxes for the bank's own account; life (if included in this sub-Item), and (C) all insurance premiums (net of dividends reother amounts that represent 25 per cent or ceived) and hospitalization insurance payable more of the total of this sub-Item, unless by the bank; and other employee benefits. "other operating income" is less than 5 per cent of "total operating income." (3) Do not include expenses related to testing, training, or education of officers and (h) Total operating income. State the sum employees; the cost of bank newspapers and of Items l(a) through l(g). magazines; premiums on insurance policies 2. Operating expenses. State separately: where the bank is beneficiary; and athletic activities where the principal purpose is for pub- (a) Salaries. licity or public relations and employee benefits (1) Include compensation for personal are only incidental. Such amounts shall be services of all officers and employees, including included in Item 2(j). dinning room and cafeteria employees but not building department employees. (c) Interest on deposits. Include interest on all deposits. (2) Include amounts withheld from sala- (d) Expense of Federal funds purchased ries for Social Security taxes and contributions and securities sold under agreements to reto the bank's pension fund. Do not include purchase. Include the total gross expenses of Social Security taxes paid by the bank for its Federal funds purchased and securities sold own account and the bank's contribution to under agreements to repurchase. pension funds. Such amounts shall be included in Item 2(b). (e) Interest on other borrowed money. (3) Include bonus and profit sharing (1) Include all interest on bills payable, paid directly or through a trustee. Such com- rediscounts, unsecured notes payable, and pensation that is deferred and not distributed other instruments issued for the purpose of to employees shall be reported in Item 2(b). borrowing money other than Federal funds purchased and securities sold under agreements (4) Do not include compensation of offito repurchase. cers and employees who spent the major portion of their working time on bank building (2) Do not include interest on mortgages Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 71 on bank premises. Such interest shall be in- amount for credit losses. Such amount shall be cluded in Item 2(g). determined by management in light of past loan (f) Interest on capital notes and debentures. loss experience and evaluation of potential loss (1) Include all interest on capital notes in the current loan portfolio. The estimated and debentures. loan loss factor allocable to operating expense (2) Amortization of premium or discount shall not be less than the amount computed shall be deducted from or included in the under one of the elective methods set forth in sub-Item (2). amount reported. (3) Do not include premium or discount (2) The bank may elect in 1969, and paid or realized on retirement of such securi- thereafter consistently use for financial reportties. Such amounts shall be reported in Item ing purposes, one of the following methods for l(g) or2(j). allocating loan losses to operating expense: (A) Average ratio of loss over the (g) Occupancy expense of bank premises, past five years applied to average loans outnet. standing during the current year. Ratio of loss (1) Include in "gross occupancy expense" shall be the single decimal quotient of total net inset the aggregate amount of (A) salaries, charge-offs (losses less recoveries) and total wages, and supplementary compensation of average loans for the five most recent years, bank personnel who devote the major portion of including the current year. their time to the operation of bank premises (B) Average ratio of loss on a forward or its consolidated premises subsidiaries; (B) moving average beginning with the year 1969 depreciation of bank premises and amortization applied to average loans outstanding during of leasehold improvements; (C) rent expense the current year. Ratio of loss shall be the single of bank premises; (D) real estate taxes; (E) decimal quotient of total net charge-offs and interest on mortgages on bank premises owned; total average loans for the number of years and (F) other bank premises operating and beginning with 1969 and ending with the year maintenance expenses. of report. In 1973, banks which elect the for- (2) Include in "rental income" inset the ward moving average method will compute aggregate amount of rentals from bank premthe minimum allocable credit loss expense on ises leased by the bank or its consolidated the same basis as banks which elect method premises subsidiaries. (1). (3) Report the net occupancy expense Note. For purposes of Items 2(A) and (B), annual (or net income) of bank premises. If net income "average loans outstanding" (1) shall include Federal is reported, the amount shall be shown in paren- funds sold and securities purchased under agreements to resell, and (2) may be computed on any reasonable thesis. schedule of frequency. In the absence of other pro- (h) Furniture and equipment expense. cedures, "Other loans", and "Federal funds sold and (1) Include normal and recurring de- securities purchased under agreements to resell", as reported in the Statements of Condition called by the preciation charges; rental costs of office ma- supervisory authorities, shall be averaged. chines and tabulating and data processing (C) Actual net charge-offs as experiequipment; and ordinary repairs to furniture enced in the current year. and office machines, including servicing costs. (3) An estimated amount for loan losses The amount applicable to depreciation charges allocable to operating expense in excess of the shall be shown in parenthesis. minimum amount computed as instructed in (2) Include taxes on equipment, sub-Item (2) should be provided when judged (i) Provision for loan losses. appropriate in the opinion of management. (1) Banks which provide for loan losses (4) Furnish in a note to financial stateon a reserve basis shall include an estimated ments an explanation of the basis for allocating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 FEDERAL RESERVE BULLETIN n JANUARY 1970 loan losses to operating expense including (A) (k) Total operating expenses. State the sum the method followed, and (B) amount added of Items 2(a) through 2(j). at the discretion of management, if any. 3. Income before income taxes and security (5) The amount may be expressed in gains (losses). State the difference of Item even dollars or thousands of dollars. l(h) minus Item 2(k). Note. The amount reported for loan losses in 4. Applicable income taxes, (a) State the operating expense shall be adjusted, if necessary, to the amount transferred to the allowance for loan aggregate of Federal and State taxes applicable losses recorded on the books of the bank by an entry to the amount reported in Item (3). to the undivided profits account in the statement of (b) Do not include taxes applicable to net changes in capital accounts. For example, if the estimated loan loss expense reported in the statement of security gains (losses) and extraordinary items. income is less than the amount transferred to the Such taxes (or tax reductions) shall be reallowance for loan losses, the amount of difference, ported in Items 6 and 8. less related tax effect, should be charged against the undivided profits account. If the estimated loan loss 5. Income before securities gains (losses). expense reported in the statement of income (1) is State the difference of Item 3 minus Item 4. more than the amount transferred to the allowance 6. Net security gains (losses). State the net for loan losses, and (2) represents the minimum amount the bank is required to allocate under its result of security gains and losses realized. Reelected method, the amount of difference, less related lated income taxes (or tax reductions) shall tax effect, should be credited to the undivided profits be shown parenthetically. account. (6) Banks which do not provide for loan 7. Net income. State the sum or difference losses on a reserve basis shall include the of Items 5 and 6. amount of actual net charge-offs (losses less Note. If extraordinary items are reported (See recoveries) for the current year. Item 8) the caption to this Item shall read, "Income before extraordinary items." (j) Other operating expenses. 8. Extraordinary items. State the material (1) Include all operating expenses not results of non-recurring transactions that have reported in Items 2(a) through 2(i). occurred during the current reporting period. (2) Include advertising, business promo- Only the results of major events outside of the tion, contributions, cost of examinations by ordinary operating activity of the bank are to supervisory authorities, deposit insurance asbe reported herein. Such events would include, sessment, fees paid to directors and members of but not be limited to, material gain or loss committees, memberships, net cash shortages from sale of bank premises, expropriation of or overages, operating expenses (except salaproperties, and major devaluation of foreign ries) of "Other real estate owned", postage, currency. Related income taxes (or tax repremium on fidelity insurance, publicity, reductions) shall be shown parenthetically. (Less tainer fees, stationery and office supplies, subthan material results of non-recurring transacscriptions, taxes not reported against other tions are to be included in Items l(g) or 2(j), items, telegrams and cables, telephone, tempo- as appropriate.) rary agency help, travel, unreimbursed losses 9. Net income. State the sum or difference on counterfeits, forgeries, payments over stops, of Items 7 and 8. and all other recurring expenses and immaterial nonrecurring charges. 10. Earnings per common share. State the (3) Deposit insurance assessment expense per share amounts applicable to common stock shall be reported as a net figure—that is, all (including common stock equivalents) and per assessment credits during the period shall be share amounts on a fully diluted basis, if apapplied against the assessment expense. plicable. The basis of computation, including (4) Itemize all amounts that represent 25 the number of shares used, shall be furnished in per cent or more of this item. a note to financial statements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 73 C. STATEMENT OF CHANGES IN CAPITAL ACCOUNTS Reserve for Capital continnotes Undigencies Increase (decrease) and Surplus vided and other deben- profits capital tures par reserves 1. Net income transferred to undivided profits 2. Capital notes and debentures, preferred stock and common stock sold (par or face value) 3. Stock issued incident to mergers and acquisitions 4. Premium on capital stock sold 5. Additions to, or reductions in, surplus, undivided profits, and reserves incident to mergers 6. Transfer to allowance for loan loss, exclusive of portion charged against income, less related income tax effect $ 7. Cash dividends declared on preferred stock 8. Cash dividends declared on common stock 9. Stock issued in payment of stock dividend, shares at par value. 10. All other increases (decreases)1 11. Net increase (decrease) for the year 12. Balance at beginning of year 2 13. Balance at end of year 1 State separately any material amounts, indicating clearly the nature of the transaction out of which the item arose. 2 If the statement is filed as part of an annual or other periodic report and the balances' at the beginning of the period differ from the closing balances as filed for the previous fiscal period, state in a footnote the difference and explain. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 FEDERAL RESERVE BULLETIN a JANUARY 1970 D. SCHEDULES SCHEDULE I—U.S. TREASURY SECURITIES, SECURITIES OF OTHER U.S. GOVERNMENT AGENCIES AND CORPORATIONS, AND OBLIGATIONS OF STATES AND POLITICAL SUBDIVISIONS Principal Book Type and maturity grouping amount value! U.S. Treasury securities Within 1 year After 1 but within 5 years After 5 but within 10 years After 10 years Total U.S. Treasury securities Securities of other U.S. Government agencies and corporations Within 1 year After 1 but within 5 years After 5 but within 10 years After 10 years Total securities of other U.S. Government agencies and corporations Obligations of states and political subdivisions 2 3 Within 1 year After 1 but within 5 years After 5 but within 10 years After 10 years Total obligation of states and political subdivisions 1 State briefly in a footnote the basis for determining the amounts in this column. 2 Include obligations of the States of the United States and their political subdivisions, agencies, and instrumentalities; also obligations of territorial and insular possessions of the United States. Do not include obligations of foreign States. 3 State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of securities that are less than "investment grade." If market value is determined on any basis other than market quotations at balance sheet date, explain. SCHEDULE II—OTHER SECURITIES Type Book value 1 Bonds, notes, and debentures 2 3 Stock of the Federal Reserve Bank Other stocks2 4 Total 1 State briefly in a footnote the basis for determining the amounts shown in this column. 2 State in a footnote the aggregate amount and book value of foreign securities included. 'State in a footnote the aggregate (a) principal amount, (b) book value, and (c) market value of bonds, notes, and debentures that are less than ."investment grade." If market value is determined on any basis other than market quotations at balance sheet date, explain. 4 State in a footnote the aggregate market value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 75 SCHEDULE III—OTHER LOANS * Type Book value Real estate loans: Insured or guaranteed by the U.S. Government or its agencies Other Loans to financial institutions Loans for purchasing or carrying securities (secured or unsecured) Commercial and industrial loans Loans to individuals for household, family, and other consumer expenditures All other loans (including overdrafts) Total other loans reported in balance sheet 1 If impractical to classify foreign branch and foreign subsidiary loans in accordance with this schedule, a separate caption stating the total amount of such loans may be inserted. Such action should be explained in a footnote. SCHEDULE IV—BANK PREMISES AND EQUIPMENT Gross book Accumulated depreciation Amount at which Classification 1 value 2 and amortization3 * carried on balance sheet Bank premises (including land $- Equipment Leasehold improvements Totals 5 1 If impractical to consolidate foreign branch and foreign subsidiary bank premises and equipment in accordance with the breakdown required by this schedule, a separate caption stating the total amount of all such property may be inserted. Such action should be explained in a footnote. 2 State briefly in a footnote the basis of determining the amounts in this column. 3 If provision for depreciation and amortization is credited in the books directly to the asset accounts, the amounts for the last fiscal year shall be stated in an explanatory footnote. 4 The nature and amount of significant additions (other than provisions for depreciation and amortization) and deductions shall be stated in an explanatory footnote. •• Show in a footnote totals (corresponding to the first two columns) representing amounts reported for Federal income tax purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 FEDERAL RESERVE BULLETIN a JANUARY 1970 SCHEDULE V—INVESTMENTS IN, DIVIDEND INCOME FROM, AND SHARE IN EARNINGS OR LOSSES OF UNCONSOLIDATED SUBSIDIARIES Bank's Equity in Total proportionate Per cent underlying investment, Amount of part of Name of subsidiary of voting net assets including dividends ~ earnings or stock owned at balance advances sheet date1 loss for the period Totals $ $ $ $ 1 Equity shall include advances reported in preceding column to the extent recoverable. 2 In a footnote state as to any dividends other than cash, the basis on which they have been reported as income. Also; if any such dividend received has been credited to income in an amount differing from that charged to surplus and/ or undivided profits by the disbursing subsidiary, state the amount of such difference and explain. SCHEDULE VI—"OTHER" LIABILITIES FOR BORROWED MONEY Item Amount Borrowings from Federal Reserve Bank Unsecured notes payable within 1 year Unsecured notes payable after 1 year Other obligations Total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 77 SCHEDULE VH—ALLOWANCE FOR POSSIBLE LOAN LOSSES Amount set up pursuant to Other Item Treasury amount1 tax formula Balances at beginning of period Recoveries credited to Allowance Additions due to mergers and absorptions 2 Transfers to Allowance: From income From undivided profits 3 Totals Losses charged to Allowance Balances at end of period 4 1 Do not include any provision for possible loan losses that the bank establishes as a precautionary measure. Include only any provision that (1) has been established through a charge against income, (2) represents management's judgment as to possible loss or value depreciation, and (3) is in excess of the provision taken under the Treasury tax formula. 2 Describe briefly in a footnote any such addition. 3 Indicate by parenthesis the gross amount of any credit adjustment to undivided profits. 4 Describe briefly in a footnote the basis used in computing the amount accumulated in the Allowance at the end of the period. State the amount that could have been deducted for Federal income tax purposes if such amount is in excess of the amount provided by the bank pursuant' to the Treasury tax formula. NOTE.—The sum of the balances should equal the amount of "Allowance for possible loan losses" reported in the balance sheet. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 FEDERAL RESERVE BULLETIN • JANUARY 1970 ORDERS UNDER BANK MERGER ACT of the merger of that bank with El Dorado State Bank, Napa, California ("Napa Bank"), which UNITED CALIFORNIA BANK, has deposits of $8 million.1 The banks would LOS ANGELES, CALIFORNIA merge under the charter and name United, which is a member of the Federal Reserve System. As an In the matter of the application of United Caliincident to the merger, the sole office of Napa fornia Bank for approval of merger with El Dorado Bank would become a branch of United, increas- State Bank. ing the number of its offices to 225. Competition. United operates 224 banking of- ORDER APPROVING MERGER OF BANKS fices in 35 of California's 58 counties. Napa Bank There has come before the Board of Governors, operates its sole office in Napa (population pursuant to the Bank Merger Act (12 U.S.C. 1828 35,700), the largest city in Napa County (popu- (c)), an application by United California Bank, lation 80,700), which is about 55 miles northeast Los Angeles, California, a State member bank of of San Francisco. The nearest offices of United the Federal Reserve System, for the Board's prior to Napa Bank are its branches at Vallejo, 16 miles approval of the merger of that bank and El Do- south of Napa, and at Santa Rosa, 40 miles to rado State Bank, Napa, California, under the the northwest of Napa. Neither bank derives a charter and name of United California Bank. As meaningful amount of business from the area an incident to the merger, the office of El Dorado served by the other. State Bank would become a branch of the resulting Napa Bank, with 8.2 per cent of area deposits, bank. Notice of the proposed merger, in form ap- is the smallest of five banks that operate a total proved by the Board, has been published pursuant of six offices in the city of Napa. California's largto said Act. est, third largest, and fourth largest banks operate Upon consideration of all relevant material in a total of four offices in Napa; the other banking the light of the factors set forth in said Act, in- office in Napa is a branch of Redwood Bank (decluding reports furnished by the Comptroller of posits $25 million), which is headquartered in the Currency, the Federal Deposit Insurance Corp- San Rafael. California law permits State-wide de oration, and the Attorney General on the com- novo branching and United heretofore obtained petitive factors involved in the proposed merger, authorization to establish a new branch in Napa, IT IS HEREBY ORDERED, for the reason set forth which it later abandoned. Thus, there is some po^ in the Board's Statement of this date, that said tential for the development of competition between application be and hereby is approved, provided United and Napa Bank, which would be elimithat said merger shall not be consummated (a) nated by the merger of the two banks. before the thirtieth calendar day following the date United, the fifth largest of 149 commercial of this Order or (b) later than three months after banks in California, holds 8.2 per cent of the the date of this Order unless such period is ex- commercial bank deposits in the State; the five tended for good cause by the Board or by the largest banks hold 78 per cent of such deposits. Federal Reserve Bank of San Francisco pursuant Napa Bank, with .02 per cent of the State's Comto delegated authority. mercial bank deposits, ranks 133rd in this respect. Dated at Washington, D.C. this 11th day of The effect of the proposed merger on competi- December 1969. tion would be slightly adverse. By order of the Board of Governors. Financial and managerial resources and prospects. The banking factors with respect to United Voting for this action: Chairman Martin and Governors Robertson, Mitchell, Daane, and Brimmer. are reasonably satisfactory, as they would be with Absent and not voting: Governors Maisel and Sherrill. respect to the resulting bank. The banking fac- (Signed) ROBERT P. FORRESTAL, tors with respect to Napa Bank are reasonably Assistant Secretary. satisfactory except for a management succession problem. Napa Bank was organized in 1964 by a [SEAL] group with no banking experience. The organizers STATEMENT initially obtained the services of a retired bank ex- United California Bank, Los Angeles, California ecutive to operate the bank, but he retired in 1968. ("United"), with total deposits of $3.6 billion, has Since that time the bank has encountered difficulty applied, pursuant to the Bank Merger Act (12 U.S.C. 1828(c)), for the Board's prior approval 1 Figures are as of June 30, 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 79 in obtaining the services of a chief executive officer lish a de novo branch in Napa, only two-tenths of on a permanent basis. Consummation of the pro- a mile from Napa Bank; the expiration date of the posed merger would immediately resolve this prob- authority was set at February 27, 1969. This site lem. for the proposed branch was acquired by United Convenience and needs of the community. The in March, 1968. On February 12, 1969, United effect of the merger on banking convenience and requested an extension of its authority to establish needs would be limited to the area served by Napa the branch, which was granted, and the new ex- Bank. piration date was set at August 27, 1969. However, Napa is presently served by offices of three large by letter of June 25, 1969, United surrendered its State-wide banks so that it appears that the bank- authority to establish a branch in Napa, alleging as ing needs of the community are being adequately the reason for its action that a review of the bankmet. Napa Bank has concentrated on making in- ing market situation in Napa showed that the comstalment loans for automobiles and other consumer munity would not support an additional banking goods; the bank has made no effort to offer a office. The agreement between United and Napa reasonable complement of commercial banking Bank to merge is dated March 18, 1969. In the services. The replacement of Napa Bank by an circumstances, I cannot accept the reason profoffice of United would provide an additional fered by United for abandoning its authority to source of full banking services for the city of establish a branch in Napa. Napa. In my judgment, the sole justification for ap- Summary and conclusion. In the judgment of proving the merger of United and Napa Bank lies the Board, the merger would have only a slightly in the desirability of a prompt resolution of the adverse effect on competition; at the same time, management succession problem of Napa Bank, a it would provide a ready solution for the man- problem which I conclude the bank probably canagement succession problem of Napa Bank and not resolve in the near future except through benefit the banking convenience and needs of the merger. It would be preferable from the stand- Napa community. point of banking competition, of course, if Napa Accordingly, the Board concludes that the ap- Bank merged with a bank other than one of the plication should be approved. State's largest and, manifestly, one of the most likely entrants into the Napa market by the establishment of de novo branch. Accordingly, I con- CONCURRING STATEMENT OF GOVERNOR BRIMMER clude that approval of the application in this case IN WHICH GOVERNOR ROBERTSON JOINS is warranted only by the slimmest margin. I concur in the conclusion of my colleagues that the application in this case should be ap- SEATTLE TRUST AND SAVINGS BANK proved; I also agree with their characterization of SEATTLE, WASHINGTON the probable effect of the merger on competition In the matter of the application of Seattle Trust as slightly adverse. However, I do not agree that and Saving Bank, for approval of merger with there are probable benefits under the convenience Cle Elum State Bank and needs factor, per se, that ought to be treated as weighing in favor of approval. ORDER APPROVING MERGER OF BANKS It is true that the replacement of Napa Bank by an office of United will provide an additional There has come before the Board of Governors, source of full banking services for the city of pursuant to the Bank Merger Act (12 U.S.C. Napa, but the loss of Napa Bank to the com- 1828(c)), an application by Seattle Trust and munity is not necessary to achieve that end. As Savings Bank, Seattle, Washington, a State member my colleagues noted, California law permits State- bank of the Federal Reserve System, for the wide de novo branching. Yet, they did not stress Board's prior approval of the merger of that bank a point to which I attach considerable weight: and Cle Elum State Bank, Cle Elum, Washington, during the calendar year 1968 and to date in 1969, under the charter and name of Seattle Trust and United received authorization to establish a total Savings Bank. As an incident to the merger, the of 16 de novo branches, including six in northern two offices of Cle Elum State Bank would become California. branches of the resulting bank. Notice of the pro- More particularly, on February 27, 1968, the posed merger, in form approved by the Board, has Board approved an application by United to estab- been published pursuant to said Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 FEDERAL RESERVE BULLETIN • JANUARY 1970 Upon consideration of all relevant material in by State Bank (Cle Elum, Roslyn and environs) the light of the factors set forth in said Act, in- has a population of about 3,600. The only other cluding reports furnished by the Comptroller of banking facility in the area is the Cle Elum branch the Currency, the Federal Deposit Insurance Cor- of Seattle-First National Bank, the largest bank in poration, and the Attorney General on the competi- Washington. Other banking facilities are 25 or more tive factors involved in the proposed merger, miles from the offices of State Bank. IT IS HEREBY ORDERED, for the reasons set forth The nearest offices of Seattle Trust and State in the Board's Statement of this date, that said Bank are 75 miles apart, and the areas served by application be and hereby is approved, provided the two banks are distinctly separate. The interventhat said merger shall not be consummated (a) ing area is mountainous and primarily national before the thirtieth calendar day following the date forest land, sparsely populated. The two communiof this Order or (b) later than three months after ties having banking offices in the intervening area the date of this Order unless such period is exare served by branches of Seattle-First National tended for good cause by the Board or by the Bank. Federal Reserve Bank of San Francisco pursuant Under Washington law, banks may establish de to delegated authority. novo branches outside the county in which they are Dated at Washington, D.C. this 7th day of headquartered, but only in incorporated, unbanked January, 1970. communities. The area served by State Bank has By order of the Board of Governors. one such community but its population is about Voting for this action: Governors Robertson, 400, so that it is unlikely that Seattle Trust, or Mitchell, Daane, Maisel, and Sherrill. Absent and not any other bank, will enter the area served by State voting: Chairman Martin and Governor Brimmer. Bank through de novo branching KENNETH A. KENYON, In terms of deposits, Seattle Trust is the eighth Deputy Secretary. largest bank in the State, with 2.5 per cent of the [SEAL] State's total commercial banking deposits. State STATEMENT Bank, with 0.1 per cent of such deposits, ranks 57th. The two largest banks in Washington to- The Seattle Trust and Savings Bank, Seattle, gether hold 51 per cent of such deposits. The Washington ("Seattle Trust"), with total deposits merger would combine the fifth largest commercial of about $135.5 million, has applied pursuant to bank headquartered in King County with the fourth the Bank Merger Act (12 U.S.C. 1828(c)), for largest of the five banks operating in Kittitas County. the Board's prior approval of the merger of that The proposed merger would not have an adverse bank with Cle Elum State Bank, Cle Elum, Washeffect on competition. ington ("State Bank"), which has deposits of $4.7.' The banks would merge under the charter and name Financial and managerial resources and prosof Seattle Trust, which is a member of the Federal pects. The banking factors with respect to each Reserve System. As an incident to the merger, the of the banks proposing to merge are reasonably two offices of State Bank would become branches satisfactory, as they would be with respect to the of Seattle Trust, increasing the number of its oper- resulting bank. ating offices to 20. Convenience and needs of the communities. The Competition. Seattle Trust operates its head of- effect of the merger on banking convenience and fice and 14 branches in King County, the Seattle needs would be limited to the area served by State metropolitan area. The bank has received approval Bank. The relatively low ratio of loans to total to establish an additional branch in King County, deposits at State Bank and its relatively high ratio and it has applications pending for five other of investment in Government obligations to total branches in the county. Seattle Trust also operates deposits indicates that the bank has not been an three branches in the Olympia area, about 60 miles aggressive competitor. This is indicated also by the southwest of Seattle. bank's maturity limitation on real estate loans and State Bank is headquarters in Cle Elum, about its relative inactivity in the exercise of its trust 80 miles southeast of Seattle, and its sole branch powers. As noted above, the largest commercal is in Roslyn, four miles northwest of Cle Elum. bank in the State has a branch in Cle Elum. Thus, Both offices are in Kittitas County. The area served while it would not appear that consummation of the proposal would bring to the area served by 1 Figures are as of September 30, 1969. State Bank new banking services, the area would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 81 benefit from the establishment there of an alter- IT IS HEREBY ORDERED, for the reason set forth nate source of full-service banking. in the Board's Statement of this date, that said Summary and conclusion. The proposed merger, application be and hereby is approved, provided in the Board's judgment, would benefit the bank- that the action so approved shall not be consuming convenience in the area served by State Bank mated (a) before the thirtieth calendar day foland would not have an adverse effect on banking lowing the date of this Order or (b) later than competition. three months after the date of this Order, unless Accordingly, the Board concludes that the ap- such period is extended for good cause by the plication should be approved. Board, or by the Federal Reserve Bank of Chicago pursuant to delegated authority. ORDERS UNDER SECTION 3 OF BANK Dated at Washington, D.C., this 22nd day of HOLDING COMPANY ACT December 1969. By order of the Board of Governors. CITIZENS BANCORPORATION, Voting for this action: Chairman Martin and Gov- SHEBOYGAN, WISCONSIN ernors Mitchell, Daane, and Sherrill. Voting against this action: Governors Robertson and Brimmer. In the matter of the application of Citizens Absent and not voting: Governor Maisel. Bancorporation, Sheboygan, Wisconsin, for ap- (Signed) ROBERT P. FORRESTAL, proval of action to become a bank holding com- Assistant Secretary. pany through the acquisition of 80 per cent or [SEAL] more of the voting shares of Citizens Bank of Sheboygan, North Side State Bank, and Commun- STATEMENT ity South Side Bank, all of Sheboygan, Wisconsin. Citizens Bancorporation, Sheboygan, Wisconsin ("Applicant"), has filed with the Board, pursuant ORDER APPROVING ACTION TO BECOME A to section 3(a)(l) of the Bank Holding Company BANK HOLDING COMPANY Act of 1956, an application for approval of action There has come before the Board of Governors, to become a bank holding company through the pursuant to section 3(a)(l) of the Bank Holding acquisition of 80 per cent or more of the voting Company Act of 1956 (12 U.S.C. 1842(a)(l)) shares of Citizens Bank of Sheboygan ("Citizens and section 222.3(a) of Federal Reserve Regula- Bank"), North Side State Bank ("North Side tion Y (12 CFR 222.3(a)), an application by Bank"), and Community South Side Bank ("Com- Citizens Bancorporation, Sheboygan, Wisconsin, munity Bank"), all of Sheboygan, Wisconsin. for the Board's prior approval of action whereby Views and recommendations of supervisory Applicant would become a bank holding company authorities. As required by section 3(b) of the through the acquisition of 80 per cent or more Act, the Board gave written notice of receipt of of the voting shares of Citizens Bank of Sheboy- the application to the Commissioner of Banking gan, North Side State Bank, and Community South of the State of Wisconsin and requested his views Side Bank, all of Sheboygan, Wisconsin. and recommendation. The Commissioner offered As required .by section 3(b) of the Act, the no objection to approval of the application. Board gave written notice to the Commissioner of Statutory considerations. Section 3(c) of the Banking of the State of Wisconsin of receipt of Act provides that the Board shall not approve an the application and requested his views and recom- acquisition that would result in a monopoly or mendation. The Commissioner offered no objec- would be in furtherance of any combination or contion to approval of the application. spiracy to monopolize or to attempt to monopolize Notice of receipt of the application was pub- the business of banking in any part of the United lished in the Federal Register on September 25, States. Nor may the Board approve a proposed 1969 (34 Federal Register 14786), which pro- acquisition, the effect of which, in any section of vided an opportunity for interested persons to the country, may be substantially to lessen compesubmit comments and views with respect to the tition, or to tend to create a monopoly, or which in proposed transaction. A copy of the application any other manner would be in restraint of trade, was forwarded to the United States Department unless the Board finds that the anticompetitive of Justice for its consideration. The time for fil- effects of the proposed transaction are clearly ing comments and views has expired and all those outweighed in the public interest by the probable received have been considered by the Board. effect of the transaction in meeting the convenience Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 FEDERAL RESERVE BULLETIN • JANUARY 1970 and needs of the communities to be served. In shares of two long-affiliated banks which are the each case, the Board is required to take into con- second and third largest in the city and which sideration the financial and managerial resources constitute the other group. Applicant's group is and future prospects of the bank holding com- slightly the larger of the two, with the difference pany and the banks concerned, and the conveni- resulting almost entirely from deposits held by ence and needs of the communities to be served. Citizens Bank's suburban offices. In terms of de- Competitive effects of the proposed transaction. posits held by city offices, the two groups are about The 10 largest banking organizations in the State equal in size. It does not appear that any undue of Wisconsin, which include 9 of the 12 Wiscon- adverse effect on the competing banking group in sin-based bank holding companies,1 control total the city, or on competing banks in Sheboygan deposits of $3.2 billion, representing 38.8 per County, would result from consummation of the cent of the deposits held by all banks in the State.2 present proposal. The acquisition of Citizens Bank (the State's ninth North Side Bank was organized in 1928 by largest banking organization with $92 million several shareholders of the predecessor of Citizens deposits), North Side Bank ($10 million deposits), Bank, and a majority of its shares are held by a and Community Bank ($2 million deposits) would wholly-owned subsidiary of the latter. The relaresult in Applicant's becoming Wisconsin's seventh tionship between Citizens Bank and Community largest bank holding company and banking or- Bank began in 1966, when the directors of Citizens ganization, with control of 1.3 per cent of the Bank acquired control of Community Bank (then total State deposits. Sheboygan Trust Company), with the encourage- All of the proposed subsidiary banks are lo- ment of supervisory authorities, in order to solve cated in the City of Sheboygan, which has a pop- financial problems of the bank. About 95 per cent ulation of 49,000. Citizens Bank is the largest of the outstanding shares of Community Bank are bank in the City and County of Sheboygan, and presently held by directors of Citizens Bank. North Side Bank and Community Bank are, respec- The relationship between Citizens Bank and tively, the fourth largest and the smallest of 5 each of the other proposed subsidiaries is such as banks in the city and of 14 banks in Sheboygan to preclude the existence of meaningful competi- County. The main office of Citizens Bank is located tion among the three banks. It does not appear in the principal downtown business district of likely that these relationships would be severed Sheboygan, and branches of the bank are located regardless of the Board's action with respect to in the communities of Plymouth, 15 miles west, the present application. Continuation of the affilia- Sheboygan Falls, 6 miles southwest, and Cedar tion beween Citizens Bank and North Side Bank is Grove, 16 miles south. The service area of Citizens completely within Citizens Bank's control as a Banks' main office includes all of the City of She- result of its ownership of a corporation which boygan and extends slightly beyond the city limits owns a majority of the shares of North Side Bank. on three sides. Both of Applicant's other proposed While the relationship of Citizens Bank with Comsubsidiaries, Community Bank and North Side munity Bank originated more recently than that Bank, are located within this area, three miles with North Side Bank, and its continuation is not south and one mile northwest of Citizens Bank, so immediately within the control of Citizens respectively. Bank, that relationship also appears strong and Each of the five banks within the City of She- likely to endure indefinitely. In addition, the size boygan is a member of one of two banking groups, of Community Bank, and its history of financial with the members of each group so closely re- difficulties prior to the establishment of its aslated as to constitute a single competitive force. sociation with Citizens Bank, strongly suggests Security Financial Services, Inc. recently received that it would not be a meaningful competitor of the Board approval3 to become a registered bank two larger banking groups in Sheboygan even if the holding company through the acquisition of voting present relationships were in some way dissipated. These considerations support the conclusion that consummation of Applicant's proposal would 1 In addition, three holding companies headquarneither eliminate present competition nor foreclose tered in Minnesota have subsidiary banks in Wisconsin. 2 Unless otherwise noted, banking data are as of June significant potential competition. 30, 1969, refer to insured commercial banks, and have Giving similar effect to the present relationships been adjusted to reflect holding company formations and acquisitions approved by the Board to date. among the three banks involved in Applicant's 31969 Federal Reserve BULLETIN 841. proposal, and to the likely continuation of those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 83 relationships, it is evident that their formalization, the present proposal. However, Community Bank as proposed, would have no meaningful effect on is limited by its resources in providing banking concentration in any area. Although it might well services to the southern part of the city. Although be concluded that there are fewer than the op- Citizens Bank has provided some assistance in this timum number of competitors in the Sheboygan regard since 1966, consummation of the present area, it does not appear that approval of the pres- proposal would facilitate its doing so. In addition, ent application would aggravate that situation, or customers of North Side Bank would be offered that denial of the application would preserve trust and data processing services for the first time. a possible avenue of deconcentration. Under these Considerations relating to the convenience and circumstances, it is the Board's view that consum- needs of the areas involved lend some weight in mation of Applicant's proposal would have no favor of approval of the application. significant effect on competition. Summary and conclusion. On the basis of all the On the basis of the foregoing, the Board con- relevant facts contained in the record, and in the cludes that consummation of this proposal would light of the factors set forth in section 3(c) of the not result in a monopoly or be in furtherance of Act, it is the Board's judgment that the proposed any combination, conspiracy, or attempt to mon- transaction would be in the public interest and opolize the business of banking in any part of the that the application should be approved. United States, and would not restrain trade, substantially lessen competition, or tend to create a DISSENTING STATEMENT OF GOVERNORS monopoly in any part of the country. ROBERTSON AND BRIMMER Financial and managerial resources and future prospects. Applicant was recently organized and Approximately two months ago, we, joined by has not engaged in any business activities. Its pro- Governor Maisel, dissented from the Board's acjected financial condition is satisfactory, its man- tion in approving the bank holding company agement competent, and its prospects, which formation of Security Financial Services, Inc., Shewould be dependent on those of its proposed sub- boygan, Wisconsin. That formation involved the sidiaries, appear favorable. acquisition of two of Sheboygan's five banks and The financial condition and management of control of 43 per cent of the total deposits of those Citizens Bank, Applicant's proposed lead bank, are five institutions combined. Our opposition was also satisfactory. Prospects of the bank appear premised, in part, upon our conclusion that such favorable. approval would effect perpetuation of the highly The financial condition and management of oligopolistic Sheyboygan market—which has the North Side Bank are satisfactory. It appears likely highest degree of concentration of banking rethat the bank will find it necessary to raise addi- sources of any city in Wisconsin with similar tional capital within the near future, and this population density. Our dissent in that case noted would be facilitated by the present proposal, in the deterrent to deconcentration of the Sheboygan view of the likely greater marketability of Ap- market likely to result should the subject applicaplicant's stock. Prospects of the bank, which ap- tion be given similar Board approval. The Board's pear favorable in any event, would be improved action approving Citizens Bancorporation's acquiby the proposed action. sition of Sheboygan's three remaining banks (one Community Bank is located in the most rapidly of which—Citizens Bank—is the largest in the growing area of Sheyboygan. Its financial condi- City and County of Sheboygan) places in two tion and management are generally satisfactory. banking organizations control of 100 per cent of Although hampered by its limited resources and the banking offices and bank deposits in the City earnings, its prospects are regarded as reasonably of Sheboygan and nearly 85 per cent of the total favorable in the light of its location and the bank deposits in Sheboygan County. present relationship with Citizens Bank, and would In support of its approval action in this case, be improved by affiliation with Applicant. the Board states that "It does not appear that . . . Considerations regarding the banking factors denial of the application would preserve a possible lend weight toward approval of the application. avenue of deconcentration." We disagree with this Convenience and needs of the communities in- conclusion for two reasons. First, as we stated volved. The banking needs of the area are being in dissent from the Board's Security Financial adequately served by present banking facilities Services approval, the likelihood of disaffiliation and would be little affected by consummation of through stock sales is greater under the existing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 FEDERAL RESERVE BULLETIN o JANUARY 1970 form of common stock ownership than will be cation to the Comptroller of the Currency and rethe case when such ownership is consolidated in quested his views and recommendation. He recomthe corporate form proposed. mended approval of the application. Secondly, the oligopolistic structure that will Notice of receipt of the application was published now confront potential entrants to the Sheboygan in the Federal Register on September 17, 1969 (34 market is sufficiently formidable, even to compet- Federal Register 14487), providing an opportunity itors of equal or greater size than the two market for interested persons to submit comments and occupants, as reasonably to suggest that prospects views with respect to the proposal. A copy of the for meaningful deconcentration of the Sheboygan application was forwarded to the United States market are nil. Department of Justice for its consideration. Time Considering the existing affiliation between and for filing comments and views has expired and among the banks that will compose Applicant's all those received have been considered by the system, it is reasonably concluded that the serv- Board. ices assertedly to result from the approved forma- IT IS HEREBY ORDERED, for the reasons set forth tion could, and in our judgment would, be avail- in the Board's Statement of this date, that said able in equal measure and with near equal facility application be and hereby is approved, provided under the existing ownership arrangement. that the action so approved shall not be consum- We are unable to conclude that the subsantial mated (a) before the thirtieth calendar day followanticompetitive effects inherent in the proposed ing the date of this Order or (b) later than three formation are outweighed to any meaningful months after the date of this Order unless such degree by the asserted additional services. We do time shall be extended by the Board, or by the not believe the transaction to be in the public in- Federal Reserve Bank of Atlanta pursuant to deleterest. Accordingly, we would deny the application. gated authority. Dated at Washington,. D.C., this 29th day of BROWARD BANCSHARES, INC., December, 1969. FORT LAUDERDALE, FLORIDA By order of the Board of Governors. In the matter of the application of Broward Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Brimmer, and Sher- Bancshares, Inc., Fort Lauderdale, Florida, for aprill. Absent and not voting: Chairman Martin and Govproval of action to become a bank holding com- ernor Maisel. pany through acquisition of at least 80 per cent of (Signed) KENNETH A. KENYON, the voting shares of each of the following banks: Deputy Secretary. Broward National Bank of Fort Lauderdale, Fort [SEAL] Lauderdale National Bank, and Coral Ridge National Bank of Fort Lauderdale, all in Fort Lauder- STATEMENT dale, Florida. Broward Bancshares, Inc., Fort Lauderdale, Florida ("Applicant"), has applied to the Board of ORDER APPROVING APPLICATION UNDER Governors pursuant to section 3(a)(l) of the BANK HOLDING COMPANY ACT Bank Holding Company Act of 1956 (12 U.S.C. There has come before the Board of Governors, 1842(a)(l)), for prior approval of action to bepursuant to section 3(a)(l) of the Bank Holding come a bank holding company through the ac- Company Act of 1956 (12 U.S.C. 1842(a)(l)) quisition of at least 80 per cent of the voting shares and section 222.3 (a) of Federal Reserve Regulation of Broward National Bank of Fort Lauderdale Y (12 CFR 222.3(a)), an application by Broward ("Broward Bank"), Fort Lauderdale National Bancshares, Inc., Fort Lauderdale, Florida, for the Bank ("Lauderdale Bank"), and Coral Ridge Na- Board's prior approval of action whereby Applicant tional Bank of Fort Lauderdale ("Coral Ridge would become a bank holding company through the Bank"), all in Fort Lauderdale, Florida. acquisition of at least 80 per cent of the voting Broward Bank, with deposits of approximately shares of each of the following banks: Broward $91 million,1 is located in the original downtown National Bank of Fort Lauderdale, Fort Lauderdale National Bank and Coral Ridge National Bank ^Unless otherwise noted, banking data are as of June 30, 1969, refer to insured commercial banks, and of Fort Lauderdale, all in Fort Lauderdale, Florida. have been adjusted to reflect holding company forma- As required by section 3(b) of the Act, the tions and acquisitions for which Board approvals have Board gave written notice of receipt of the appli- been issued to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 85 area of Fort Lauderdale. Lauderdale Bank, located ty. The largest bank in the county (as well as in about one-half mile southeast of Broward Bank, the city of Fort Lauderdale), on the basis of total holds nearly $43 million of deposits. Coral Ridge deposits in the relevant area, is the First National Bank, with deposits of about $46 million, is located Bank, which has deposits of $161 million. Together approximately six miles northeast of Broward with its three affiliates, it holds 19.8 per cent of total Bank in what appears to be the newest and most deposits in the county. rapidly developing section of the city. The area lying within the city limits of Fort Views and recommendation of supervisory au- Lauderdale is designated by Applicant as the servthority. As required by section 3(b) of the Act, ice area of Broward Bank as well as of Laudernotice of receipt of the application was given to dale Bank. Coral Ridge Bank's service area is the Comptroller of the Currency, and his views and described by Applicant as an area rectangular in recommendation were requested. He recommended shape, extending approximately one mile east to approval of the application. the Atlantic Ocean, three miles north to McNab Statutory considerations. Section 3(c) of the Act Road, five miles west to U.S. Highway 441, and provides that the Board shall not approve an ac- two miles south to Sunrise Boulevard. This service quisition that would result in a monopoly or would area lies within the city of Fort Lauderdale. The be in furtherance of any combination or con- combined deposits of the three banks constitute apspiracy to monopolize or to attempt to monopolize proximately 31 per cent of the total deposits held the business of banking in any part of the United by 16 banks in Fort Lauderdale and the group States. Nor may the Board approve a proposed ranks second in the city. As indicated earlier, First acquisition the effect of which, in any section of the National Bank is the city's largest bank. Coral country, may be substantially to lessen competition Ridge Bank, the second largest bank in its service or to tend to create a monopoly, or which in any area, holds 21.6 per cent of the deposits held by the other manner would be in restraint of trade, unless nine banks located there. the Board finds that the anticompetitive effects of Applicant states that the three banks in its group the proposed transaction are clearly outweighed in have been affiliated through common ownership the public interest by the probable effect of the since the opening of Lauderdale Bank in 1947 and transaction in meeting the convenience and needs Coral Ridge Bank in 1958; that both these banks of the community to be served. In each case the were established under the sponsorship of Broward Board is required to take into consideration the Bank which continuously has provided management financial and managerial resources and future pros- personnel and guidance to them; that the three banks pects of the bank holding company and the banks have always operated and publicly advertised as a concerned, and the convenience and needs of the banking group; and that the group's principals community to be served. have continuously owned over 50 per cent of the Competitive effect of the proposed transaction. stock of each of the three banks. According to The 10 largest banking organizations in Florida, Applicant, Lauderdale Bank was organized as an which include 9 of the 13 bank holding companies affiliate of Broward Bank in order to provide cusin the State, control approximately 38 per cent of tomer parking and drive-in facilities for customers total bank deposits in the State. The three proposed who needed such facilities, Broward Bank being subsidiary banks, as a group, control less than 2 unable at that time to obtain adjacent property per cent of such deposits. Consummation of the for expansion to provide such facilities. (Branches proposed acquisitions would make Applicant the are not permitted under State law.) Coral Ridge tenth largest banking organization and bank hold- Bank, it is stated, was organized to gain entry into ing company in Florida. the fast growing Coral Ridge area. Applicant fur- There are 33 banks in Broward County. No bank ther states that, at the time of the formation of or banking group is regarded as exercising a these two banks, Broward Bank encouraged many dominant influence in the county. The three banks customers to transfer their accounts to the new in Applicant's group, ranking second, seventh, and banks. ninth on the basis of total deposits, in the aggre- Broward Bank derives 9 per cent of its demand gate control 16.5 per cent of deposits and con- IPC deposits and 22 per cent of its time IPC destitute the second largest group located there. The posits from the service area of Coral Ridge Bank. Everglades Bank & Trust Company, Fort Lauder- Lauderdale Bank derives 9 per cent of its demand dale, a subsidiary of the State's second largest IPC deposits and 19 per cent of its time IPC debanking organization, is located in Broward Coun- posits from that area. Coral Ridge Bank's service Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 FEDERAL RESERVE BULLETIN n JANUARY 1970 area, being totally within the service area of the County. On the basis of a 1968 estimated populaother two banks, derives all of its deposits from tion of nearly one-half million, the county ranks their service area. However, because of the existing third in the State; and has shown a rate of increase common ownership and management relationships in population from 1960 to 1968 that is greater of the three banks and the active cooperation than that for the State as a whole. Prospects for among them, approval of the application would the county's continued growth are regarded as merely place in a corporate structure a group rela- favorable. Fort Lauderdale, the largest city in the tionship that already exists and has existed for county and the county seat, has a 1969 estimated many years, ever since the organization of the two population of 150,000. It is regarded as one of the smaller banks. leading tourist centers in the State and one of its The data presented reflect that formation of the rapidly growing cities. Continued growth for the proposed holding company would have no sig- city of Fort Lauderdale appears likely. nificant effect upon concentration of banking re- Applicant states that formation of the proposed sources in the State nor in any relevant service holding company system would result in certain area, no meaningful competition would be lessened, advantages to the subsidiary banks, particularly the and no banking alternative would be eliminated. two smaller ones, in the nature of improved com- Disaffiliation of these banks in the foreseeable fu- puter, accounting, and trust services, larger loan ture and the development of significant competition capabilities, better resources for raising additional among them are regarded as unlikely. Also it ap- equity capital and other services. However, it appears unlikely that consummation of the proposed pears that the communities' needs for banking affiliation will have any undue adverse effect on services are being met adequately by the banks in any of the banks competing in the relevant areas. the relevant areas; and that the services mentioned On the record before the Board, it is concluded by Applicant can be provided within the existing that the proposed affiliation would not result in a affiliate relationship. Considerations relating to the monopoly nor be in furtherance of any combina- convenience and needs of the communities served tion or conspiracy to monopolize or attempt to by the proposed subsidiaries lend little, if any, monopolize the business of banking in any relevant weight in favor of approval but are consistent area; and would not substantially lessen competi- therewith. tion, tend to create a monopoly, nor in any other Summary and conclusion. On the basis of all manner restrain trade in any relevant section of the relevant facts contained in the record, and in the country. the light of the factors set forth in section 3(c) Financial and managerial resources and future of the Act, it is the Board's judgment that the prospects. Upon consummation of the proposal proposed transaction would be in the public interherein, Applicant would commence operations as a est and that the application should be approved. bank holding company with a net worth of $14 million and no debt. Its financial condition is sat- JEFFERSON BANCORP, INC., isfactory. Its management, which would be drawn MIAMI BEACH, FLORIDA from the management of the proposed subsidiary In the matter of the application of Jefferson banks, is experienced and capable. Prospects for the Bancorp, Inc., Miami Beach, Florida, for approval proposed holding company would depend upon of action to become a bank holding company those of its subsidiaries and, on this basis, appear favorable. Each of the proposed subsidiary banks is through the acquisition of 80 percent or more of considered to be a sound, well-managed institution the voting shares of Jefferson National Bank of with good prospects. The Board concludes that con- Miami Beach, Florida, and Jefferson National siderations under the banking factors are consistent Bank at Sunny Isles, Sunny Isles, Florida. with approval. ORDER APPROVING APPLICATION UNDER Convenience and needs of the community in- BANK HOLDING COMPANY ACT volved. Broward County, located on the east coast of south Florida, between Dade and Palm Beach There has come before the Board of Governors, counties, is coterminous with the Fort Lauderdale- pursuant to section 3(a)(l) of the Bank Holding Hollywood Standard Metropolitan Statistical Area Company Act of 1956 (12 U.S.C. 1842(a)(l)) and ranks seventh in land area among Florida's 67 and section 222.3 (a) of Federal Reserve Regulacounties. Suburban and tourist needs and demands tion Y (12 CFR 222.3(a)), an application by have led to a recent rapid growth of Broward Jefferson Bancorp, Inc., Miami Beach, Florida, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 87 for the Board's prior approval of action whereby Views and recommendation of supervisory Applicant would become a bank holding company authority. As required by section 3(b) of the Act, through the acquisition of 80 per cent or more of the Board gave written notice of receipt of the the voting shares of Jefferson National Bank of application to the Comptroller of the Currency Miami Beach, Miami Beach, Florida, and Jeffer- and requested his views and recommendation. The son National Bank at Sunny Isles, Sunny Isles, Comptroller indicated that, based on Applicant's Florida. representations, his office had no objection to the As required by section 3(b) of the Act, the proposal. Board notified the Comptroller of the Currency Statutory considerations. Section 3(c) of the of receipt of the application and requested his Act provides that the Board shall not approve an views and recommendation. The Comptroller in- acquisition that would result in a monopoly or dicated that he had no objection to approval of would be in furtherance of any combination or the application. conspiracy to monopolize or to attempt to mo- Notice of receipt of the application was pub- nopolize the business of banking in any part of the lished in the Federal Register on July 25, 1969 (34 United States. Nor may the Board approve a pro- Federal Register 12304), providing an opportu- posed acquisition, the effect of which, in any section nity for interested persons to submit comments and of the country, may be substantially to lessen comviews with respect to the proposal. A copy of the petition, or to tend to create a monopoly, or which in application was forwarded to the Department of any other manner would be in restraint of trade, un- Justice for its consideration. Time for filing com- less the Board finds that the anticompetitive effects ments and views has expired and all those received of the proposed transaction are clearly outweighed in have been considered by the Board. the public interest by the probable effect of the trans- IT IS HEREBY ORDERED, for the reason set forth action in meeting the convenience and needs of in the Board's Statement of this date, that said the communities to be served. In each case the application be and hereby is approved, provided Board is required to take into consideration the that the action so approved shall not be consum- financial and managerial resources and future mated (a) before the thirtieth calendar day fol- prospects of the bank holding company and the lowing the date of this Order or (b) later than banks concerned, and the convenience and needs three months after the date of this Order, unless of the communities to be served. such period is extended for good cause by the Competitive effect of proposed transaction. Board, or by the Federal Reserve Bank of At- There are 14 bank holding companies in the State lanta pursuant to delegated authority. of Florida, which, in the aggregate, holds deposits Dated at Washington, D.C., this 8th day of of $4.8 billion,1 representing 40.7 per cent of the January, 1970. State's total deposits. Upon acquisition of Miami By order of the Board of Governors. Beach Bank ($36 million deposits) and Sunny Voting for this action: Chairman Martin and Gov- Isles Bank ($8 million deposits), Applicant would ernors Mitchell, Maisel, Brimmer, and Sherrill. Absent rank fourteenth in size among 15 bank holding and not voting: Governors Robertson and Daane. companies in the State. The consummation of Ap- (Signed) KENNETH A. KENYON, plicant's proposal would increase the percentage Deputy Secretary, of banking deposits held by bank holding com- [SEAL] panies in Florida by less than .4 per cent and would not significantly affect State-wide banking STATEMENT concentration. Jefferson Bancorp, Inc., Miami Beach, Florida Miami Beach Bank commenced its operations in ("Applicant"), has filed with the Board, pursuant 1964, and Sunny Isles Bank opened in 1965. to section 3 (a) (1) of the Bank Holding Company Miami Beach Bank is situated about eight miles Act of 1956, an application for approval of south of the Sunny Isles Bank. Both banks are action to become a bank holding company through located in Dade County, but serve separate porthe acquisition of 80 per cent or more of the voting shares of Jefferson National Bank of Miami Beach, Miami -Beach, Florida ("Miami 1AU banking data are as of June 30, 1969, unless Beach Bank"); and Jefferson National Bank at otherwise noted, and are adjusted to reflect holding Sunny Isles, Sunny Isles, Florida ("Sunny Isles company formations and acquisitions approved by the Bank"). Board to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 FEDERAL RESERVE BULLETIN o JANUARY 1970 tions of the Miami Beach area. There are no other moderate growth, and its prospects appear favorbanks located within the area served by either; able. both, however, compete with banks located just On the basis of the foregoing, considerations outside the areas which they serve. Four banks, relating to the banking factors are consistent with with deposits ranging from $25 million to $149 approval of the application. million, are located within a radius of about three Convenience and needs of the communities inmiles from Miami Beach Bank, and six banks, with volved. The service area of the Miami Beach Bank deposits of $12 to $34 million, are located at disincludes residential and commercial sections with tances of from two to seven miles from Sunny an estimated population of 25,000. The popula- Isles Bank. tion fluctuates with the tourist season, but the con- The two subject banks control 1.6 per cent of struction of apartment accommodations has the $2.8 billion deposits held by 63 banks in the brought permanent residents to the area. Miami county. Six bank holding companies control 18 of Beach Bank and the competing banks which are these banks, and account, in the aggregate, for 52 located near its service area offer a wide range of per cent of the county's total deposits. The in- banking services, and consummation of this procrease in concentration which would result from posal would not result in a change in the services consummation of Applicant's proposal would not now being offered. be significant in any case. The area served by the Sunny Isles Bank is a The two subject banks have been affiliated as a tourist area which has a population of 3,000 perresult of common individual ownership since July manent residents; its commercial establishments 1968. Even in the absence of such affiliation, it consist mainly of motel and hotel accommodadoes not appear that significant competition would tions. The banking needs of the area's residents exist between the two banks, considering the difand businesses appear to be adequately served by ference in their sizes, the distance between their the Sunny Isles Bank and the competing banks looffices, and the number and size of intervening cated near the service area. There are proposals banks. In the light of the prohibition of branching for construction in the area which may attract under Florida law, it appears that these same facmore permanent and semi-permanent residents. tors would likewise limit future competition between the two banks. Although the banking needs of the relevant areas appear to be adequately served, the forma- On the basis of the foregoing, the Board contion of the holding company would permit greater cludes that consummation of the proposed transcooperation between the two proposed subsidiary action would not result in a monopoly, nor be in banks, which would serve to facilitate expansion furtherance of any combination, conspiracy or of their lending activities, and which could result attempt to monopolize the business of banking in in more efficient operations and services to the exany part of the United States, and would not repanding communities which they serve. The constrain trade, substantially lessen competition, or siderations relating to the banking factors are contend to create a monopoly in any part of the sistent with approval of the application, and lend country. some weight in support thereof. Financial and managerial resources and future Summary and conclusion. On the basis of all prospects. Applicant, a newly organized Florida relevant facts contained in the record, and in the corporation, has no financial or operating history. light of the factors set forth in section 3(c) of the Its projected financial condition and management Act, it is the Board's judgment that the proposed aopear satisfactory, and its prospects, which would action would be in the public interest and that the be dependent upon those of the two banks it proapplication should be approved. poses to acquire, also appear satisfactory. The Miami Beach Bank is considered to be in a generally satisfactory financial condition, and to CENTRAL BANKING SYSTEM INC., have capable management. The bank is experienc- OAKLAND, CALIFORNIA ing satisfactory growth, and its prospects are considered favorable. In the matter of the application of Central Bank- The financial condition of the Sunny Isles Bank ing System, Inc., Oakland, California, for apis satisfactory and its management, as supple- proval of acquisition of 51 per cent or more of the mented by the Miami Beach Bank, is also con- voting shares of Tahoe National Bank, South Lake sidered satisfactory. The bank has experienced Tahoe, California. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 89 ORDER APPROVING ACQUISITION OF BANK STOCK for prior approval of the acquisition of 51 per cent BY BANK HOLDING COMPANY or more of the voting shares of Tahoe National Bank, South Lake Tahoe, California ("Bank"). There has come before the Board of Governors, Views and recommendation of supervisory aupursuant to section 3(a) (3) of the Bank Holding thority. As required by section 3(b) of the Act, Company Act of 1956 (12 U.S.C. 1842(a)3)), the Board gave written notice of receipt of the apand section 222.3 (a) of Federal Reserve Regulation plication to the Comptroller of the Currency and Y (12 CFR 222.3(a)), an application by Cenrequested his views and recommendation thereon. tral Banking System, Inc., Oakland, California, a In response, the Comptroller recommended apregistered bank holding company, for the Board's proval of the application. prior approval of the acquisition of 51 per cent or Statutory considerations. Section 3(c) of the more of the voting shares of Tahoe National Bank, Act provides that the Board shall not approve an South Lake Tahoe, California. acquisition that would result in a monopoly or As required by section 3(b) of the Act, the would be in furtherance of any combination or Board gave written notice of receipt of the appliconspiracy to monpolize or to attempt to monopocation to the Comptroller of the Currency and lize the business of banking in any part of the requested his views and recommendation thereon. United States. Nor may the Board approve a pro- In response, the Comptroller recommended apposed acquisition, the effect of which, in any secproval of the application. tion of the country, may be substantially to lessen Notice of receipt of the application was pub- competition, or to tend to create a monopoly, or lished in the Federal Register on October 21, 1969 which in any other manner would be in restraint (34 Federal Register 17086), providing an oppor- of trade, unless the Board finds that the anticomtunity for interested persons to submit comments petitive effects of the proposed transaction are and views with respect to the proposal. A copy of clearly outweighed in the public interest by the the application was forwarded to the United States probable effect of the transaction in meeting the Department of Justice for its consideration. Time convenience and needs of the communities to be for filing comments and views has expired and all served. In each case, the Board is required to take those received have been considered by the Board. into consideration the financial and managerial re- IT IS HEREBY ORDERED, for the reasons set forth sources and future prospects of the bank holding in the Board's Statement of this date, that said ap- company and the banks concerned, and the conplication be and hereby is approved, provided that venience and needs of the communities to be the acquisition so approved shall not be consum- served. mated (a) before the thirtieth calendar day fol- Competitive effect of proposed transaction. Aplowing the date of this Order, or (b) later than plicant is the second largest of six registered bank three months after the date of this Order, unless holding companies operating in the State of Calisuch time shall be extended for good cause by the fornia. The deposits 1 controlled by the six hold- Board, or by the Federal Reserve Bank of San ing companies combined represent approximately Francisco pursuant to delegated authority. 10 per cent of total bank deposits in the State. The Dated at Washington, D. C, this 23rd day of largest of the six holding companies controls 8 per December, 1969. cent of such deposits. Applicant's subsidiary banks By order of the Board of Governors. have deposits of $255.7 million, which represent Voting for this action: Vice Chairman Robertson .58 per cent of California bank deposits. and Governors Mitchell, Daane, Maisel, Brimmer, and Applicant has four subsidiary banks, the largest Sherrill. Absent and not voting: Chairman Martin. of which, the Central Valley National Bank, Oak- (Signed) KENNETH A. KENYON, land, Alameda County, California (deposits Deputy Secretary. $212.3 million), operates 34 banking offices in 11 [SEAL] California counties. Applicant's other subsidiaries are unit banks which operate in three counties in STATEMENT which the Central Valley National Bank also has offices. The subsidiaries are: (1) First National Central Banking System, Inc., Oakland, Cali- Bank of Fresno, Fresno County (deposits $24.9 fornia ("Applicant"), a registered bank holding company, has applied to the Board of Governors, pursuant to section 3 (a) (3) of the Bank Holding 1 All banking data are as of June 30, 1969, and refer Company Act of 1956 (12 U.S.C. 1842(a)(3)), to insured commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 FEDERAL RESERVE BULLETIN a JANUARY 1970 million); (2) Peninsula National Bank of Burlin- Based upon the foregoing, the Board concludes game, San Mateo County (deposits $11.7 mil- that consummation of the proposed acquisition lion) ; and (3) Livermore National Bank, Alameda would not result in a monopoly or be in further- County (deposits $6.8 million). Based upon the ance of any combination, conspiracy, or attempt shares of deposits held by subsidiaries of Applicant to monopolize the business of banking in any area, in the counties in which it is represented, it is rea- and would not substantially lessen competition, sonably concluded that Applicant does not hold a tend to create a monopoly, or restrain trade in any monopoly nor occupy a dominant position in any section of the country. market. Financial and managerial resources and future Bank is located in South Lake Tahoe, El prospects. The financial conditions and manage- Dorado County, California, where it operates two ments of Applicant and its subsidiaries are reoffices. Its service area, which approximates the garded as generally fair. Applicant's prospects and relevant market, comprises the eastern portion of those of its subsidiaries are regarded as favorable. El Dorado County, together with the western Bank's financial condition, its management, and portion of Douglas County, Nevada, and is loits prospects, in its present circumstances, are recated at the southern shore of Lake Tahoe. Bank garded as substantially less than satisfactory. Since is located approximately 115 miles distant from commencement of operations in 1963, its capital the closest subsidiary of Applicant. Neither Bank funds have been reduced substantially and further nor any of Applicant's subsidiaries derive any subreductions are likely to occur in the future. Bank's stantial business in any area served by the other. problems are primarily related to its need for im- There is, therefore, no significant existing compeproved and experienced management. In this contition between subsidiaries of Applicant and Bank nection, Applicant has recently made available to which will be eliminated by consummation of the Bank an experienced banker who is engaged in proposed transaction. supervising the Bank's over-all operations, includ- Although, under California banking law, any ing approval of alj loans. The experienced mansubsidiary of Applicant could establish a de novo agement services thus being provided would, upon office in the relevant market, this is not a realistic consummation of the proposal, continue on a perpossibility. In addition to Bank, the market, with manent basis. With capable management, Bank's an estimated population of 20,000 persons, is alprospects should be satisfactory. Considerations reready served by branches of five larger California lating to the banking factors, as applied to the and Nevada banking organizations. These factors, transaction, therefore, are regarded as weighted together with Applicant's distant location from the heavily in favor of approval. market, makes its entry there unlikely. There is, therefore, no substantial potential competition be- Convenience and needs of the communities intween Bank and subsidiaries of Applicant which volved. Consummation of the proposed transacwill be eliminated by the proposed acquisition. tion would have no effect on customers of Appli- Consummation of the proposed transaction cant's present subsidiaries. would not result in an increase in concentration • There is no evidence that the general banking of banking resources in any area served by Bank needs of residents of the relevant market are going or by any subsidiary of Applicant. Applicant's unserved. As indicated, Bank is not participating share of the total deposits held by all commercial in a meaningful manner in serving its customers. banks in the State of California would increase Through its affiliation with Applicant, Bank should from .58 to .59 per cent. The Board finds, there- be able to offer such residents an additional alfore, that acquisition of Bank by Applicant would ternate source of full-service banking. Consideranot significantly increase the concentration of comtions relating to the convenience and needs of the mercial banking resources in the State. Bank poscommunity, therefore, support approval of the sesses the third largest share of bank deposits held application. by the six banking institutions which operate in the relevant market area. Competition between Summary and conclusion. On the basis of all Bank and the other banks located in the market is relevant facts contained in the record and in the likely to become more aggressive if Bank is op- light of the factors set forth in section 3(c) of the erated as a subsidiary of Applicant. No adverse Act, it is the Board's judgment that the proposed effect upon the competitive position of other banks acquisition would be in the public interest, and is reasonably foreseen in Applicant's proposal. that the application should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 91 SOCIETY CORPORATION, STATEMENT CLEVELAND, OHIO Society Corporation, Cleveland, Ohio ("Appli- In the matter of the application of Society Corcant"), a registered bank holding company, has poration, Cleveland, Ohio, for approval of acquisiapplied to the Board of Governors, pursuant to tion of up to 100 per cent (less directors' qualifysection 3(a) (3) of the Bank Holding Company ing shares) of the voting shares of The American Act of 1956 (12 U.S.C. 1842(a)(3)), for prior Bank, Port Clinton, Ohio. approval of the acquisition of up to 100 per cent (less directors' qualifying shares) of the voting ORDER APPROVING ACQUISITION OF BANK STOCK shares of The American Bank, Port Clinton, Ohio BY BANK HOLDING COMPANY ("Bank"). There has come before the Board of Governors, Views and recommendation of supervisory aupursuant to section 3(a)(3) of the Bank Holding thority. As required by section 3(b) of the Act, Company Act of 1956 (12 U.S.C. 1842(a)(3)) notice of receipt of the application was given to and section 222.3(a) of Federal Reserve Regulation the Superintendent of Banks for the State of Ohio, Y (12 CFR 222.3(a)), an application by Society and his views and recommendation were re- Corporation, Cleveland, Ohio, a registered bank quested. The Superintendent recommended apholding company, for the Board's prior approval proval of the application. of the acquisition of up to 100 per cent (less direc- Statutory considerations. Section 3(c) of the tors' qualifying shares) of the voting shares of The Act provides that the Board shall not approve an American Bank, Port Clinton, Ohio. acquisition that would result in a monopoly or As required by section 3(b) of the Act, the would be in furtherance of any combination or Board gave written notice of receipt of the appliconspiracy to monopolize or to attempt to monopcation to the Superintendent of Banks for the State olize the business of banking in any part of the of Ohio and requested his views and recommenda- United States. Nor may the Board approve a protion. The Superintendent recommended approval posed acquisition, the effect of which, in any secof the application. tion of the country, may be substantially to lessen Notice of receipt of the application was pubcompetition, or to tend to create a monopoly, or lished in the Federal Register on August 26, 1969 which in any other manner would be in restraint (34 Federal Register 13681) providing an opporof trade, unless the Board finds that the anticomtunity for interested persons to submit comments petitive effects of the proposed transaction are and views with respect to the proposal. A copy of clearly outweighed in the public interest by the the application was forwarded to the United States probable effect of the transaction in meeting the Department of Justice for its consideration. Time convenience and needs of the communities to be for filing comments has expired and all those reserved. In each case, the Board is required to take ceived have been considered by the Board. into consideration the financial and managerial IT IS HEREBY ORDERED, for the reasons set forth resources and future prospects of the bank holding in the Board's Statement of this date, that said apcompany and the banks concerned, and the conplication be and hereby is approved, provided that venience and needs of the communities to be the acquisition so approved shall not be consumserved. mated (a) before the thirtieth calendar day fol- Competitive effect of the proposed transaction. lowing the date of this Order or (b) later than The 10 largest banking organizations in Ohio conthree months after the date of this Order, unless trol about 45 per cent of deposits held by all comsuch period is extended for good cause by the mercial banks in the State.1 Applicant is the fifth Board, or by the Federal Reserve Bank of Clevelargest banking organization and the second largest land, pursuant to delegated authority. of six bank holding companies in the State. It con- Dated at Washington, D- C. this 29th day of trols four banks with aggregate deposits of $806.6 December 1969. million, representing 4.1 per cent of the total de- By order of the Board of Governors. posits in the State. Acquisition of Bank ($24.5 Voting for this action: Vice Chairman Robertson million deposits) would increase Applicant's share and Governors Mitchell, Daane, Brimmer, and Sherof the total deposits in the State to 4.2 per cent and rill. Absent and not voting: Chairman Martin and Governor Maisel. (Signed) KENNETH A. KENYON, ^11 banking data are as of June 30, 1969, adjusted Deputy Secretary. to reflect holding company formations and acquisi- [SEAL] tions approved by the Board to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 FEDERAL RESERVE BULLETIN a JANUARY 1970 would not change Applicant's position relative to tance between Bank and Applicant's other subother banking organizations and bank holding sidiaries, it does not appear that any significant companies in the State. competition would be eliminated by consumma- Applicant's largest subsidiary bank is Society tion of the present proposal. The same considera- National Bank, which has deposits of $699 mil- tions would appear to preclude any likelihood that lion and is the fourth largest bank in Cleveland. such competition would develop between Bank Its other subsidiaries are The Springfield Bank, and those subsidiaries in the future. Springfield ($69 million deposits); The Fremont In evaluating the potential for future competi- Savings Bank Company, Fremont ($22 million de- tion between Bank and Applicant, the Board has posits) ; and The Western Reserve Bank of Lake also considered the possibility that Applicant might County, Painesville ($16 million). enter into competition in Ottawa County through Bank, the only office of which is located in Port the alternative means of acquisition of a smaller Clinton, Ohio (population 7,900), is the largest bank or establishment of a new bank, and has conof seven banks in Ottawa County, and serves an cluded that neither of those courses appears likely. area which extends about five miles west and The population of Ottawa County is only 39,000, southwest of Port Clinton and eastward to the end and has increased only 10 per cent since 1960. of the Marblehead and Catawba Peninsulas. One Seven banks operate eight banking offices in the other bank, with about $15 million in deposits, is county, and the population per banking office is located in Port Clinton, and three other banks, almost one-third lower than the State average located about 12 miles from Port Clinton, compete (4,805 versus 6,730). Economic growth of the in the area described. It does not appear that any area has also been slow, with a disposable income undue adverse effect on competing banks would per banking office of $12.3 million versus a State result from consummation of Applicant's proposal. average of $19.7 million. No new bank has been started in the county since 1934. Port Clinton is The only one of Applicant's subsidiary banks the only significant city in Ottawa County, and is which has an office within 60 miles of Port Clintherefore the only banking location in the county ton is The Fremont Savings Bank ($22 million likely to be attractive to a holding company condeposits), which is located in Fremont, Sandusky templating an acquisition in the area. The only County, 16 miles southeast of Port Clinton. Alother bank in the city is a subsidiary of a corporathough no competing banks are located on direct tion with diversified financial and manufacturing access routes between Fremont and Port Clinton, interests, and does not appear to represent a likely neither Bank nor Fremont Savings Bank derives alternative acquisition. more than a minor amount of business from the area served by the other, and no significant com- The data presented reflect that Applicant's acquipetition exists between them. This appears to be a sition of Bank would not eliminate existing comperesult of the different economic base of the two tition or foreclose potential competition and would areas and of natural geographical barriers which have no significant impact upon the degree of conseparate them. Port Clinton is located on Lake centration of banking resources in any relevant Erie and is well known as a recreational com- market. On the record before the Board, it is conmunity. Fremont is located in an area of very cluded that the proposed acquisition would not level land of lake bed origin which is primarily result in a monopoly or be in furtherance of any devoted to agriculture; farms in the area average combination or conspiracy to monopolize the busibetween 100 and 150 acres. Much of the area ness of banking in any relevant area. Approval of between Port Clinton and Fremont is swamp land. the application would not substantially lessen com- Because of these factors, there are no significant petition, tend to create a monopoly, or restrain commercial ties between the two areas. This is to trade in any section of the country. some extent reflected by the loan portfolios of Financial and managerial resources and future Bank and Fremont Savings Bank: about 23 per prospects. The financial condition of Applicant, its cent of Bank's loans are boat loans, whereas Fre- subsidiary banks and Bank is generally satisfacmont Savings Bank has no significant amount of tory. All have competent management. Bank's loans of this type; almost 10 per cent of the loans chief executive officer and his wife, who serves as made by Fremont Savings Bank are loans to executive vice president of Bank, are its principal farmers, which constitute less than .5 per cent of stockholders. Both are past the usual retirement Bank's portfolio. age and Applicant's proposal would avoid the un- In view of the above, and considering the dis- certainties which could result from their retire- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 93 ment. Prospects of Applicant, its present sub- ORDER APPROVING ACQUISITION OF BANK STOCK sidiaries, and Bank appear favorable. BY BANK HOLDING COMPANY These considerations are consistent with ap- There has come before the Board of Governors, proval of the present application, and lend some pursuant to section 3(a) (3) of the Bank Holding weight in support for such action as they relate Company Act of 1956 (12 U.S.C. 1842(a)(3)) to Bank. and section 222.3(a) of Federal Reserve Regula- Convenience and needs of the communities intion Y (12 CFR 222.3(a)), an application by volved. Consummation of the present proposal First at Orlando Corporation, Orlando, Florida, a would not affect the convenience or needs of cusregistered bank holding company, for the Board's tomers served by Applicant's present subsidiary prior approval of the acquisition of at least 80 per banks. cent of the voting shares of First National Bank of In general, the banking needs of the Port Clin- Melbourne, Melbourne, Florida. ton area have been served adequately by the banks As required by section 3(b) of the Act, the located there. On consummation of the acquisi- Board gave written notice of receipt of the applition, however, Bank, drawing on the resources of cation to the Comptroller of the Currency and rethe Applicant, would offer trust services, autoquested his views and recommendation. The mated demand deposit account reconcilation, Comptroller recommended approval of the appliautomated payroll services, and other services not cation. now available locally. Notice of receipt of the application was pub- Additionally, Applicant plans to develop Bank's lished in the Federal Register on September 9, capacity for commercial and industrial lending. 1969 (34 Federal Register 14189), providing an The prospects for economic growth of the comopportunity for interested persons to submit community appear closely related to the growth of the ments and views with respect to the proposal. A Erie Industrial Park, which was established in copy of the application was forwarded to the 1965 on the former site of the United States Gov- United States Department of Justice for its conernment Erie Ordnance Depot. Applicant states sideration. Time for filing comments and views has that there is a need for local commercial financing expired and all those received have been conwhich would attract additional firms to the indussidered by the Board. trial park. Assistance from Applicant's other bank- IT IS HEREBY ORDERED, for the reasons set forth ing subsidiaries would be available in negotiating in the Board's Statement of this date, that said apthese more complex credits and in arranging parplication be and hereby is approved, provided that ticipations to meet credit needs beyond Bank's the acquisition so approved shall not be consumlending capacity. mated (a) before the thirtieth calendar day follow- Considerations relating to the convenience and ing the date of this Order or (b) later than three needs of the community served by Bank provide months after the date of this Order, unless such some weight in favor of approval of this appliperiod is extended for good cause by the Board, cation. or by the Federal Reserve Bank of Atlanta, pur- Summary and conclusion. On the basis of all suant to delegated authority. relevant facts contained in the record and in the Dated at Washington, D. C, this 30th day of light of the factors set forth in section 3(c) of the December 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 Voting for this action: Vice Chairman Robertson that application should be approved. and Governors Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Martin and Governor Mitchell. (Signed) KENNETH A. KENYON, Deputy Secretary. FIRST AT ORLANDO CORPORATION, [SEAL] ORLANDO, FLORIDA STATEMENT In the matter of the application of First at Orlando Corporation, Orlando, Florida, for ap- First at Orlando Corporation, Orlando, Florida proval of acquisition of at least 80 per cent of the ("Applicant"), a registered bank holding comvoting shares of First National Bank of Mel- pany, has applied to the Board of Governors, purbourne, Melbourne, Florida. suant to section 3(a) (3) of the Bank Holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 FEDERAL RESERVE BULLETIN • JANUARY 1970 Company Act of 1956 (12 U.S.C. 1842(a)(3)), of the remaining six banks are subsidiaries of a for prior approval of the acquisition of at least 80 bank holding company, another is the subject of a per cent of the voting shares of First National holding company application now pending before Bank of Melbourne, Melbourne, Florida ("First the Board, and the remaining three are members Melbourne Bank"). of an affiliated group of banks with aggregate de- Views and recommendation of supervisory au- posits of $32 million. Another member of the latthority. As required by section 3(b) of the Act, ter group, located 11 miles north of First Melthe Board gave written notice of receipt of the ap- bourne Bank and just outside the area, also complication to the Comptroller of the Currency, and petes to some extent for area loans and deposits. requested his views and recommendation. The In terms of area deposits, First Melbourne Bank Comptroller recommended approval of the appli- is the third largest of the four banking organizacation. tions. While approval of the subject application Statutory considerations. Section 3(c) of the would enable the bank to compete more effectively Act provides that the Board shall not approve an with other banks in the area, it does not appear acquisition that would result in a monopoly or that there would be any undue adverse effect on would be in furtherance of any combination or any competing bank. conspiracy to monopolize or to attempt to monop- Applicant's closest subsidiary is located in olize the business of banking in any part of the Brevard County at Cocoa, 22 miles north of Mel- United States. Nor may the Board approve a pro- bourne; each of its other subsidiaries is more than posed acquisition, the effect of which, in any sec- 45 miles from Melbourne. There are a number of tion of the country, may be substantially to lessen banking alternatives in Cocoa and Melbourne, and competition, or tend to create a monopoly, or in the area between. Neither the Cocoa Bank nor which in any other manner would be in restraint First Melbourne Bank derives any significant busiof trade, unless the Board finds that the anticom- ness from the area served by the other, and no petitive effects of the proposed transaction are existing competition would be eliminated by conclearly outweighed in the public interest by the summation of the present proposal. Neither does probable effect of the transaction in meeting the it appear, in view of the distances separating the convenience and needs of the communities to be present subsidiary banks from First Melbourne served. In each case the Board is required to take Bank, the presence of intervening banks, and the into consideration the financial and managerial prohibition against branching under Florida law, resources and future prospects of the bank holding that significant potential competition would be company and the banks concerned, and the con- foreclosed. venience and needs of the communities to be For the foregoing reasons, the Board concludes served. that consummation of the present proposal would Competitive effect of the proposed transaction. not result in a monopoly or be in furtherance of The 10 largest banking organizations in Florida, any combination, conspiracy or attempt to moall of which are bank holding companies, control nopolize the business of banking in any part of 38 per cent1 of all banking deposits in the State. the United States, and would not restrain trade, Applicant has 13 subsidiary banks with aggregate substantially lessen competition, or tend to create deposits of $404 million, representing 3.5 per cent a monopoly in any section of the country. of the deposits held by all Florida banks. The Financial and managerial resources and future acquisition of First Melbourne Bank ($16 million prospects. The financial condition of Applicant deposits) would increase Applicant's control of and its subsidiary banks is generally satisfactory, the State's banking deposits to 3.6 per cent, with their managements are considered competent, and a resultant negligible effect on State-wide concen- the prospects for the group appear favorable. tration. Applicant would remain the fifth largest The financial condition of First Melbourne Bank banking organization in Florida. is regarded as satisfactory. The present manage- First Melbourne Bank is located in Brevard ment of the bank is regarded as competent and County and serves an 11-mile coastal area with a experienced, and its prospects are considered population of approximately 90,000. It is the favorable. second largest of seven area banks. However, two Considerations under the banking factors are consistent with approval of the application. 'AH banking data are as of June 30, 1969, unless otherwise noted, but reflect holding company forma- Convenience and needs of the communities intions and acquisitions approved by the Board to date. volved. The convenience and needs of customers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 95 located in areas served by Applicant's present sub- services to be offered, thereby assuring that bank sidiary banks would not be affected by the pro- will continue to be a meaningful alternative to posed acquisition. larger organizations competing in the area. It appears that the banking needs of Melbourne The considerations relating to the convenience and surrounding areas are being satisfactorily and needs of customers in the area served by First served at present. No major changes are contem- Melbourne Bank are consistent with, and provide plated in the services now being offered by First some weight in support of, approval of the appli- Melbourne Bank, but Applicant anticipates greater cation. efficiencies in the operation of the bank due to Summary and conclusion. On the basis of all benefits derived from the group affiliation, and the relevant facts contained in the record, and in these efficiencies could provide indirect benefits to the light of the factors set forth in section 3(c) of the community which it serves. In addition, affilia- the Act, it is the Board's judgment that the protion would provide greater facility in handling posed acquisition would be in the public interest, large credit requests, and would permit broader and that the application should be approved. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements DESIGNATIONS AND APPOINTMENTS OF CHAIRMEN AND FEDERAL RESERVE AGENTS, DEPUTY CHAIRMEN, AND DIRECTORS The Board of Governors of the Federal Reserve System announced its appointments at the Federal Reserve Banks and branches, effective January 1, 1970. The appointments are for Chairmen, who also serve as Federal Reserve Agents, Deputy Chairmen, and directors at the Federal Reserve Banks, and for directors at the Federal Reserve branches. Names in CAPITALS indicate NEW appointments; all others are reappointments. Brief biographic data about each of the new appointees follow the listings. CHAIRMEN AND FEDERAL RESERVE AGENTS (One-year terms) Federal Reserve Bank: Boston JAMES S. DUESENBERRY, Professor of Economics, Harvard University, Cambridge, Massachusetts. New York Albert L. Nickerson, former Chairman of the Board, Mobil Oil Corporation, New York, New York. Philadelphia Willis J. Winn, Dean, Wharton School of Finance and Commerce, University of Pennsylvania, Philadelphia, Pennsylvania. Cleveland Albert G. Clay, President, Clay Tobacco Company, Mt. Sterling, Kentucky. Richmond Wilson H. Elkins, President, University of Maryland, College Park, Maryland. Atlanta Edwin I. Hatch, President, Georgia Power Company, Atlanta, Georgia. Chicago EMERSON G. HIGDON, President, The Maytag Company, Newton, Iowa. St. Louis Frederic M. Peirce, Chairman of the Board and Chief Executive Officer, General American Life Insurance Company, St. Louis, Missouri. Minneapolis Robert F. Leach, Attorney, Oppenheimer, Hodgson, Brown, Wolff and Leach, St. Paul, Minnesota. Kansas City Dolph Simons, Editor, Journal-World, Lawrence, Kansas. Dallas Carl J. Thomsen, Senior Vice President, Texas Instruments, Incorporated, Dallas, Texas. San Francisco O. Meredith Wilson, President and Director, Center for Advanced Study in the Behavioral Sciences, Stanford, California. DEPUTY CHAIRMEN (One-year terms) Federal Reserve Bank: Boston John M. Fox, President and Chairman of the Board, United Fruit Company, Boston, Massachusetts. New York James M. Hester, President, New York University, New York, New York. 96 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

DEPUTY CHAIRMEN—Continued Philadelphia Bayard L. England, Chairman of the Board, Atlantic City Electric Company, Atlantic City, New Jersey. Cleveland J. Ward Keener, Chairman of the Board, The B. F. Goodrich Company, Akron, Ohio. Richmond Robert W. Lawson, Jr., Managing Partner of Charleston Office, Steptoe & Johnson, Charleston, West Virginia. Atlanta John C. Wilson, President, Horne-Wilson, Inc., Atlanta, Georgia. Chicago WILLIAM H. FRANKLIN, President, Caterpillar Tractor Company, Peoria, Illinois. St. Louis Smith D. Broadbent, Jr., Owner, Broadbent Hybrid Seed Company, Cadiz, Kentucky. Minneapolis David M. Lilly, Chairman of the Board, Toro Manufacturing Corporation, Minneapolis, Minnesota. Kansas City Willard D. Hosford, Jr., Vice President and General Manager, John Deere Company, Omaha, Nebraska. Dallas CHAS. F. JONES, President, Humble Oil & Refining Company, Houston, Texas. San Francisco S. Alfred Halgren, Senior Vice President, Carnation Company, Los Angeles, California. FEDERAL RESERVE BANK DIRECTORS l (Three-year terms) Boston LOUIS W. CABOT, Chairman of the Board, Cabot Corporation, Boston, Massachusetts. New York Albert L. Nickerson (see above). Philadelphia BayardL. England (see above). Cleveland Albert G. Clay (see above). Richmond Robert W. Lawson (see above). Atlanta F. EVANS FARWELL, President, Milliken & Farwell, Inc., New Orleans, Louisiana. Chicago Emerson G. Higdon (see above). St. Louis Sam Cooper, President, HumKo Products, Division of Kraftco Corporation, Memphis, Tennessee. Minneapolis David M. Lilly (see above). Kansas City Willard D. Hosford, Jr. (see above). Dallas PHILIP G. HOFFMAN, President, University of Houston, Houston, Texas. San Francisco S. Alfred Halgren (see above). 1 Each Federal Reserve Bank has a board of direc- of Governors. One term in each class of directors extors consisting of nine members, divided equally into pires at the end of each year. three classes, known as Classes A, B, and C. The six The Board of Governors designates the Chairmen A and B directors are elected by the member banks, and Deputy Chairmen from among the Class C direcand the three C directors are appointed by the Board tors. Each Chairman also serves as the Federal Reserve Agent at his Bank. 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 FEDERAL RESERVE BULLETIN • JANUARY 1970 FEDERAL RESERVE BANK BRANCH DIRECTORS : (Three-year terms unless otherwise indicated) Federal Reserve Bank and Branch: New York Buffalo MORTON ADAMS, General Manager, Pro-Fac Cooperative Inc., Rochester, New York. Cleveland Cincinnati Phillip R. Shriver, President, Miami University, Oxford, Ohio. Pittsburgh Lawrence E. Walkley, President and Chief Executive Officer, Westinghouse Air Brake Company, Pittsburgh, Pennsylvania. Richmond Baltimore Arnold J. Kleff, Jr., Manager, Baltimore Refinery, American Smelting and Refining Company, Baltimore, Maryland. Charlotte E. CRAIG WALL, Sr., Chairman of the Board, Canal Industries, Inc., Conway, South Carolina. Atlanta E. STANLEY ROBBINS, President, National Floor Prod- Birmingham ucts Company, Inc., Florence, Alabama. Henry K. Stanford, President, University of Miami, Coral Jacksonville Gables, Florida. ROY J. FISHER, Manager, Tennessee Operations, Aluminum Nashville Company of America, Alcoa, Tennessee. D. BEN KLEINPETER, Wholesale Manager, Kleinpeter New Orleans Farms Dairy, Inc., Baton Rouge, Louisiana. Chicago Detroit WILLIAM M. DEFOE, Chairman of the Board, Defoe Shipbuilding Company, Bay City, Michigan. St. Louis Jake Hartz, Jr., President, Jacob Hartz Seed Company, Inc., Stuttgart, Arkansas. Little Rock John G. Beam, President, Thomas Industries, Inc., Louisville, Kentucky. Louisville William L. Giles, President, Mississippi State University, State College, Mississippi. Memphis 2 Federal Reserve branches have either five or Governors of the Federal Reserve System. The anseven directors, of whom a majority are appointed by nouncement of the appointments of branch directors the board of directors of the parent Federal Reserve made by the Federal Reserve Banks is published on Bank, and the others are appointed by the Board of page 102. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 99 FEDERAL RESERVE BANK BRANCH DIRECTORS—Continued Minneapolis (2-year term) Helena WILLIAM A. CORDINGLEY, Publisher, Great Falls Tribune, Great Falls, Montana. Kansas City (2-year terms) Denver Cris Dobbins, Chairman of the Board and President, Ideal Basic Industries, Inc., Denver, Colorado. Oklahoma City C. W. Flint, Jr., Chairman of the Board, Flint Steel Corporation, Tulsa, Oklahoma. Omaha A. James Ebel, Vice President and General Manager, Cornhusker Television Corporation, Lincoln, Nebraska. Dallas El Paso ALLAN B. BOWMAN, President and General Manager, Banner Mining Company, Tucson, Arizona. Houston Geo. T. Morse, Jr., President and General Manager, Peden Iron and Steel Company, Houston, Texas. San Antonio W. A. Belcher, Veterinarian and Rancher, Brackettville, Texas. San Francisco Los Angeles Leland D. Pratt, President, Kelco Company, San Diego, California. (2-year terms) Portland Frank Anderson, Farmer, Heppner, Oregon. Salt Lake City Royden G. Derrick, President and General Manager, Western Steel Company, Salt Lake City, Utah. Seattle FRANCIS G. CRANE, Owner-Manager, Crane and Crane Orchards and Cold Storage, Brewster, Washington. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 FEDERAL RESERVE BULLETIN a JANUARY 1970 Federal Reserve Bank of Boston President of Milliken & Farwell, Inc., in New Or- JAMES S. DUESENBERRY, Cambridge, leans. As a director he succeeds John A. Hunter, Massachusetts, who has been serving as a Board- President of Louisiana State University, Baton appointed director of the Federal Reserve Bank Rouge, Louisiana, whose term expired December of Boston since January 1, 1969, was designated 31, 1969. Chairman of the Bank for the year 1970. Mr. E. STANLEY ROBBINS, Florence, Alabama, Duesenberry is Professor of Economics at Harwas appointed a director of the Birmingham vard University in Cambridge. As Chairman he Branch of the Federal Reserve Bank of Atlanta succeeds Howard W. Johnson, President of Masfor a three-year term beginning January 1, 1970. sachusetts Institute of Technology, Cambridge, Mr. Robbins is President of National Floor Prod- Massachusetts, whose terms as Chairman and as ucts Company, Inc., in Florence. As a director he a director expired December 31, 1969. succeeds Mays E. Montgomery, General Manager of Dixie Home Feeds Company, Athens, LOUIS W. CABOT, Boston, Massachusetts, Alabama, whose term expired December 31, was appointed a Class C director of the Federal 1969. Reserve Bank of Boston for a three-year term beginning January 1, 1970. Mr. Cabot is Chair- ROY J. FISHER, Alcoa, Tennessee, was apman of the Board of Cabot Corporation in Bos- pointed a director of the Nashville Branch of the ton. As a director he succeeds Howard W. John- Federal Reserve Bank of Atlanta for a three-year son (see preceding paragraph). term beginning January 1, 1970. Mr. Fisher is Manager of Tennessee Operations for the Aluminum Company of America in Alcoa. As a direc- Federal Reserve Bank of New York tor he succeeds James E. Ward, Chairman of the Board of Baird-Ward Printing Company, Nash- MORTON ADAMS, Rochester, New York, was appointed a director of the Buffalo Branch of ville, Tennessee, whose term expired December 31, the Federal Reserve Bank of New York for a 1969. three-year term beginning January 1, 1970. Mr. D. BEN KLEINPETER, Baton Rouge, Louisi- Adams is General Manager of Pro-Fac Cooperaana, was appointed a director of the New Ortive Inc., in Rochester. As a director he succeeds leans Branch of the Federal Reserve Bank of Gerald F. Britt, President of L-Brooke Farms, Atlanta for a three-year term beginning January Inc., Byron, New York, whose term expired 1, 1970. Mr. Kleinpeter is Wholesale Manager of December 31, 1969. Kleinpeter Farms Dairy, Inc., in Baton Rouge. As a director he succeeds George B. Blair, General Manager of American Rice Growers Cooper- Federal Reserve Bank of Richmond ative Association, Lake Charles, Louisiana, whose E. CRAIG WALL, Sr., Conway, South Caro- term expired December 31, 1969. lina, was appointed a director of the Charlotte Branch of the Federal Reserve Bank of Richmond Federal Reserve Bank of Chicago for a three-year term beginning January 1, 1970. EMERSON G. HIGDON, Newton, Iowa, who Mr. Wall is Chairman of the Board of Canal Inhad been serving as Deputy Chairman since Jandustries, Inc., in Conway. As a director he sucuary 1,1969, and has been a Board-appointed direcceeds James A. Morris, Commissioner of The tor of the Federal Reserve Bank of Chicago since South Carolina Commission on Higher Education, January 1, 1967, was designated Chairman of the Columbia, South Carolina, whose term expired Bank for the year 1970. Mr. Higdon is President December 31, 1969. of The Maytag Company in Newton. As Chairman he succeeds Franklin J. Lunding, Chairman of the Finance Committee of Jewel Companies, Federal Reserve Bank of Atlanta Inc., Melrose Park, Illinois, whose term as Chair- F. EVANS FARWELL, New Orleans, Louisiman expired December 31, 1969. ana, was appointed a Class C director of the Federal Reserve Bank of Atlanta for a three-year WILLIAM H. FRANKLIN, Peoria, Illinois, term beginning January 1, 1970. Mr. Farwell is who has been serving as a Board-appointed di- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 101 rector of the Federal Reserve Bank of Chicago Bank for the year 1970. Dr. Jones is President since January 1, 1969, was appointed Deputy of Humble Oil & Refining Company, in Houston. Chairman of the Bank for the year 1970. Mr. As Deputy Chairman he succeeds Max Levine, Franklin is President of Caterpillar Tractor Com- retired Chairman of the Board of Foley's in pany in Peoria. As Deputy Chairman he succeeds Houston, whose terms as Deputy Chairman and Emerson G. Higdon (see preceding paragraph). as a director expired December 31, 1969. WILLIAM M. DEFOE, Bay City, Michigan, PHILIP G. HOFFMAN, Houston, Texas, was was appointed a director of the Detroit Branch of appointed a Class C director of the Federal Rethe Federal Reserve Bank of Chicago for a three- serve Bank of Dallas for a three-year term beginyear term beginning January 1, 1970. Mr. Defoe ning January 1, 1970. Dr. Hoffman is President is Chairman of the Board of Defoe Shipbuilding of the University of Houston. As a director he Company in Bay City. As a director he succeeds succeeds Max Levine (see preceding paragraph). Max P. Heavenrich, Jr., President of Heavenrich Bros, and Company, Saginaw, Michigan, whose ALLAN B. BOWMAN, Tucson, Arizona, was term expired December 31, 1969. appointed a director of the El Paso Branch of the Federal Reserve Bank of Dallas for a three-year term beginning January 1, 1970. Mr. Bowman is Federal Reserve Bank of Minneapolis President and General Manager of Banner Min- WILLIAM A. CORD1NGLEY, Great Falls, ing Company in Tucson. As a director he suc- Montana, was appointed a director of the Helena ceeds C. Robert McNally, Jr., a rancher at Ros- Branch of the Federal Reserve Bank of Minne- well, New Mexico, whose term expired December apolis for a two-year term beginning January 1, 31, 1969. 1970. Mr. Cordingley is Publisher of the Great Falls Tribune in Great Falls. As a director he Federal Reserve Bank of San Francisco succeeds Edwin G. Koch, President of Montana FRANCIS G. CRANE, Brewster, Washington, College of Mineral Science and Technology, was appointed a director of Seattle Branch of the Butte, Montana, whose term expired December Federal Reserve Bank of San Francisco for a two- 31, 1969. year term beginning January 1, 1970. Mr. Crane is Owner-Manager of Crane and Crane Orchards Federal Reserve Bank of Dallas and Cold Storage in Brewster. As a director he CHAS F. JONES, Houston, Texas, who has succeeds William McGregor, Vice President of been serving as a Board-appointed director of the McGregor Land and Livestock Company, Federal Reserve Bank of Dallas since October 22, Hooper, Washington, whose term expired De- 1968, was appointed Deputy Chairman of the cember 31, 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 FEDERAL RESERVE BULLETIN a JANUARY 1970 FEDERAL RESERVE BANK APPOINTMENTS OF BRANCH DIRECTORS' The Federal Reserve Banks have announced the following appointments of branch directors. The appointments have been made for terms of three years beginning January 1, 1970 except as otherwise indicated. Federal Reserve Bank and Branch: New York Buffalo DAVID J. LAUB, President and Chief Executive Officer, Marine Midland Trust Company of Western New York, Buffalo, New York, succeeds E. Perry Spink, Chairman of the Board, Liberty National Bank and Trust Company, Buffalo, New York. Cleveland Cincinnati EDWARD W. BARKER, President, First National Bank, Middletown, Ohio, succeeds Robert J. Barth, President, The First National Bank, Dayton, Ohio. FRED O. MacFEE, JR., Vice President and General Manager, Aircraft Engine Operating Division, General Electric Company, Evendale, Ohio, succeeds John W. Humphrey, Chairman of the Board, The Philip Carey Manufacturing Company, Cincinnati, Ohio. Pittsburgh ROBINSON F. BARKER, Chairman of the Board and Chief Executive Officer, PPG Industries, Pittsburgh, Pennsylvania, succeeds Charles M. Beeghly, Chairman of the Executive Committee, Jones and Laughlin Steel Corporation, Pittsburgh, Pennsylvania. JACK W. BINGHAM, President, The Merchants & Manufacturers National Bank, Sharon, Pennsylvania, succeeds Thomas L. Wentling, President, First National Bank of Westmoreland, Greensburg, Pennsylvania. Richmond Baltimore J. R. CHAFFINCH, JR., Executive Vice President, The Denton National Bank, Denton, Maryland, succeeds John P. Sippel, President, The Citizens National Bank, laurel, Maryland. Charlotte J. WILLIS CANTEY, President, The Citizens and Southern National Bank, Columbia, South Carolina. (Reappointed) Atlanta Birmingham HARVEY TERRELL, Chairman of the Board, The First National Bank of Birmingham, Alabama, suceeds Will T. Cothran, Chairman of the Board, Birmingham Trust National Bank, Birmingham, Alabama. Jacksonville JAMES G. RICHARDSON, Chairman of the Board and President, The Commercial Bank and Trust Company of Ocala, Florida, succeeds L. V. Chappell, President, First National Bank, Clearwater, Florida. 1 Federal Reserve branches have either five or Governors of the Federal Reserve System. The anseven directors, of whom a majority are appointed by nouncement of appointments of branch directors made the board of directors of the parent Federal Reserve by the Board of Governors is published on page 98. Bank, and the others are appointed by the Board of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 103 A tlan ta—Con United Nashville EDWARD C. HUFFMAN, Chairman of the Board and President, First National Bank, Shelbyville, Tennesseee, succeeds Andrew Benedict, Chairman of the Board, First American National Bank, Nashville, Tennessee. New Orleans H. P. HEIDELBERG, JR., President, Pascagoula-Moss Point Bank, Pascagoula, Mississippi, succeeds A. L. Gottsche, Executive Vice President, First Mississippi National Bank, Biloxi, Mississippi. Chicago Detroit ROLAND A. MEWHORT, Chairman of the Board, Manufacturers National Bank, Detroit, Michigan, succeeds John H. French, Jr., President, City National Bank, Detroit, Michigan. GEORGE L. WHYEL, President, Genesee Bank, Flint, Michigan. (Reappointed) St. Louis Little Rock ELLIS E. SHELTON, President, The First National Bank, Fayetteville, Arkansas. (Reappointed) WAYNE A. STONE, President, Simmons First National Bank, Pine Bluff, Arkansas. (Reappointed) Louisville JAMES C. ZIMMERMAN, Executive Vice President, The Owensboro National Bank, Owensboro, Kentucky, succeeds Wm. G. Deatherage, President, Planters Bank & Trust Co., Hopkinsville, Kentucky. PAUL CHASE, President, The Bedford National Bank, Bedford, Indiana. (Reappointed) Memphis JAMES R. FITZHUGH, Executive Vice President, Bank of Ripley, Tennessee, succeeds Con T. Welch, President, Citizens Bank, Savannah, Tennessee. LEWIS K. MCKEE, Chairman of the Board, National Bank of Commerce, Memphis, Tennessee, succeeds Allen Morgan, Chairman of the Board, The First National Bank, Memphis, Tennessee. Minneapolis (2-year term) Helena RICHARD D. RUBIE, Chairman of the Board and President, Missoula Bank of Montana, Missoula, Montana, succeeds B. Meyer Harris, President, The Yellowstone Bank, Laurel, Montana. Kansas City (2-year terms) Denver ARMIN B. BARNEY, Chairman of the Board, The Colorado Springs National Bank, Colorado Springs, Colorado. (Reappointed) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 FEDERAL RESERVE BULLETIN a JANUARY 1970 Kansas City—Continued Oklahoma City W. H. MCDONALD, Chairman of the Executive Committee, The First National Bank and Trust Company of Oklahoma City, Oklahoma, succeeds Howard J. Bozarth, Vice Chairman of the Board, The Fidelity National Bank and Trust Company, Oklahoma City, Oklahoma. Omaha JOHN W. HAY, JR., President, Rock Springs National Bank, Rock Springs, Wyoming. (Reappointed) S. N. WOHLBACH, President, First National Bank, Grand Island, Nebraska. (Reappointed) Dallas El Paso SAM D. YOUNG, JR., President, El Paso National Bank, El Paso, Texas, succeeds Robert W. Heyer, Consultant, Southern Arizona Bank & Trust Company, Tucson, Arizona. ARCHIE B. SCOTT, President, The Security State Bank, Pecos, Texas. (Reappointed) Houston W. G. THORNELL, President, The First National Bank, Port Arthur, Texas. (Reappointed) JOHN E. WHITMORE, Chairman of the Board, Texas National Bank of Commerce, Houston, Texas. (Reappointed) San Antonio W. O. ROBERSON, President, First National Bank, Brownsville, Texas, succeeds J. R. Thornton, Chairman of the Board and President, State Bank and Trust Company, San Marcos, Texas. T. C. FROST, JR., President, The Frost National Bank, San Antonio, Texas. (Reappointed) San Francisco (2-year terms) Los Angeles SHERMAN HAZELTINE, Chairman of the Board, First National Bank of Arizona, Phoenix, Arizona. (Reappointed) Portland RALPH J. Voss, President, First National Bank of Oregon, Portland, Oregon. (Reappointed) Salt Lake City WILLIAM E. IRVIN, President, The Idaho First National Bank, Boise, Idaho. (Reappointed) Seattle JOSEPH C. BAILLARGEON, Chairman of the Board, Seattle Trust & Savings Bank, Seattle, Washington, succeeds Maxwell Carlson, President, The National Bank of Commerce, Seattle. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 105 CHANGES IN BOARD STAFF son Electric Co., a Washington-based electrical The Board of Governors announced the follow- contracting firm. ing official staff promotions and appointments, ef- INCREASE IN INTEREST RATES AND PROPOSED fective January 1, 1970: CHANGE IN RESERVE REQUIREMENTS Normand R. V. Bernard was appointed an As- The Board of Governors of the Federal Reserve sistant Secretary and Gordon B. Grimwood was System announced on January 20, 1970, an upward appointed Defense Planning Coordinator and Asrealignment of maximum interest rates that member sistant Secretary. commercial banks may pay on time and savings de- Mr. Bernard joined the Board's staff as an econposits. At the same time, the Board published for omist in the Government Finance Section, Division comment a proposed rule applying reserve requireof Research and Statistics, in June 1962 and transments to certain types of bank-related commercial ferred to the Secretary's Office in January 1968 with paper. The interest-rate changes became effective principal responsibility in the Federal Open Market January 21 while the proposed action on commercial Committee area. He holds a B.A. from Assumption paper, if adopted, would become effective as of College, Worcester, Massachusetts, and M.A. and February 26. Ph.D. degrees from Boston College. Prior to his The dual moves were taken within the framework Board service, he was an Instructor at Boston Colof continued over-all credit restraint and were based lege. on these considerations: a rebalancing of the Board's Since joining the Board's staff in May 1941, regulatory structure in the light of recently expand- Mr. Grimwood has held positions in the Office of ed authority in this field and developments in finanthe Secretary, Division of Research and Statistics, cial markets; a readjustment of the structure of Division of International Finance, and the Office maximum interest rates payable by commercial of Defense Planning. Prior to his appointment, he banks for deposits to bring it somewhat more in line had been the Assistant to the Director of the Divi- with going yields on market securities; the need for sion of International Finance. greater equity in the rates that may be paid for Murray S. Wernick, Associate Adviser, and Ber- smaller savings balances; and a desire to encourage nard Shull, Assistant Adviser, in the Division of longer-term savings in reinforcement of anti-infla- Research and Statistics, were promoted to Ad- tionary measures. viser and Associate Adviser, respectively. The revisions in the Board's Regulation Q ceiling In addition, James L. Pierce and Stephen P. rates were held to moderate size, so as not to foster Taylor were appointed Assistant Advisers in the sudden and large movements of funds into the bank- Division of Research and Statistics. Both will ing system that could cause distortions in traditional continue to serve also in their former capacities: financial flows or lead to an upsurge in the volume Mr. Pierce as Chief of the Special Studies Section of bank lending. and Mr. Taylor as Chief of the Flow of Funds The revisions were made after consultation with Section. the Federal Deposit Insurance Corporation and the Mr. Pierce holds a Ph.D. from the University of Federal Home Loan Bank Board, which have paral- California at Berkeley. Before his appointment to lel regulatory authority over the maximum interest the Board's staff in August 1965, he was an Assistant rates that may be paid by insured State nonmember Professor of Economics at Yale University and a banks, mutual savings banks, and savings and loan staff member of the Cowles Foundation for Re- associations. search in Economics. In taking the actions announced, the Board of Mr. Taylor joined the Board's staff in May 1953 Governors expressed its belief that higher rates paid as an economist in the Division of Research and to savers by institutions generally would increase Statistics. He had previously been with the Office of the pool of savings for investment in mortgages. Business Economics, U.S. Department of Com- The change in the maximum interest rates paymerce. Mr. Taylor has an M.B.A. from the Gradu- able on time and savings deposits is the first since ate School of Business, Columbia University. April 19, 1968, when maximum interest rates on Donald E. Anderson was appointed an Assistant deposits of $100,000 or more were increased. Director in the Division of Administrative Serv- In the action, the Board raised from 4 to 4.5 per ices. Prior to joining the Board's staff as a Project cent the maximum rate national and State member Representative for Construction in September banks may pay on passbook savings, the first change 1968, Mr. Anderson was president of the Ander- in this rate since November 24, 1964. The Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 FEDERAL RESERVE BULLETIN n JANUARY 1970 also approved the following maximum rate struc- commercial paper market of about $33 billion. ture for other types of consumer-type deposits— Governor Robertson dissented from the action those of less than $100,000: increasing the maximum rates payable on time deposits of $100,000 or more. Governor Sherrill was Maturity M N a e x w imum P r r a e t v e i o ( u % s not present. 30-89 days multiple maturity1.... 4.50 4.00 90 days and over multiple maturity1 5.00 500 EARNINGS AND EXPENSES OF THE FEDERAL 30 days-1 year single maturity.... 5.00 5.00 RESERVE BANKS IN 1969 AND 1968 1 to 2 year single maturity 5.50 5.00 2 years or more single maturity . . 5.75 5.00 Preliminary figures received from the Federal Re- 1 Multiple-maturity time deposits include deposits that are serve Banks indicate that during 1969 their gross automatically renewable at maturity without action by the de- current earnings amounted to $3,373 million. Expositor and deposits that are payable after written notice of withdrawal. penses totaled $275 million, leaving net current earnings of $3,098 million. With a $1 million net Previously, there was no provision in Regulation deduction from profit and loss account, net earn- Q for an interest rate above 5 per cent on consumerings before payments to the U.S. Treasury were type deposits. The 1-year and 2-year instruments $3,097 million. Payments to the U.S. Treasury as that may now be offered by member banks at the interest on Federal Reserve notes amounted to 5.50 per cent and 5.75 per cent maximum rates, re- $3,019 million; statutory dividends to member spectively, must be single-dated maturities. banks, $39 million; and additions to surplus ac- The Board also approved the following schedule counts, $39 million. of maximum rates that member commercial banks Under the policy adopted by the Board of Govmay pay on time deposits of $100,000 or more: ernors at the end of 1964, all net earnings after Maximum rate (%) the statutory dividend to member banks and addi- Maturity New Previous tions to surplus to bring it to the level of paid-in 30-59 days 6.25 5.50 60-89 days 6.50 5.75 capital were paid to the U.S. Treasury as interest 90-179 days 6.75 6.00 180 days to 1 year 7.00 6.25 on Federal Reserve notes. 1 year or more 7.50 6.25 Compared with 1968, gross earnings were up In proposing to use new legislative authority for $609 million, or 22 per cent. The principal inthe first time, the Board said it is considering a 10 creases in earnings were as follows: on Governper cent reserve requirement on funds obtained by ment securities, $527 million; on discounts and member banks through the issuance of commercial advances, $36 million; and on foreign currencies, paper or similar obligations by bank affiliates, in- $45 million. cluding a member bank's parent company—either a Expenses in 1969 were up $33 million, about one-bank holding company or a company registered 13 per cent, and dividends, $2 million. under the Bank Holding Company Act. On October 29, 1969, the Board announced Item 1969 1968 that it was considering amending its rules governing the payment of interest on deposits to apply to funds Thousands of dollars received by member banks from the issuance of commercial paper by bank affiliates or by a parent Current earnings 3,373,360 2,764,446 holding company. Subsequently, the Act of Decem- Current expenses 274,973 242,350 ber 23, 1969, explicitly authorized the Board to apply reserve requirements to such obligations. Ac- Current net earnings.... 3,098,387 2,522,096 cordingly, the Board has withheld action in applying Net addition to or deducinterest-rate ceilings to bank-related commercial tion from (—) current net paper while it is considering amending its rules to earnings -557 8,520 apply reserve requirements to the same type paper. Net earnings before pay- Comments on this proposal should be received by ments to U.S. Treasury.. 3,097,830 2,530,616 the Board by February 16. Dividends paid 39,237 36,960 Commercial paper issued by bank holding com- Payments to U.S. Treasury panies or their affiliates has grown substantially dur- (interest on F.R. notes).. 3,019,161 2,463,629 ing the last several months, totaling about $4 billion Transferred to surplus 39,432 30,027 at the end of December compared with a total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 107 ARRANGEMENTS RELATING TO SALES OF the Fund whenever the occasion would arise, for GOLD BY SOUTH AFRICA TO THE example, to pay charges, to make repurchases of INTERNATIONAL MONETARY FUND the Fund's holdings of rand or to pay the gold Under the two-tier gold system established at a subscription arising from any increase in South meeting in Washington on March 16-17, 1968, by Africa's quota. South Africa has stated that South the central bank governors of seven countries (Fed- African rand purchased by other Fund members in eral Reserve BULLETIN, March 1968, p. 254), accordance with Fund procedures would generally central banks throughout the world have generally be converted into gold by South Africa on the reneither sold gold in private gold markets nor bought quest for conversion of the member purchasing the gold there. Since that time the question of appro- rand from the Fund. The announced policy also priate arrangements for the sale of gold by South envisages that South Africa may offer to sell gold Africa within the framework of the two-tier system to the Fund to obtain currency when South Africa has been discussed among officials of the United is designated by the Fund under the Articles to States, South Africa, certain other countries, and receive special drawing rights from another participant in return for currency to be provided by South the International Monetary Fund. Africa to the participant that is using its special In December 1969 agreement was reached on drawing rights. These Fund-related sales of gold will this question. The agreement was embodied in a not affect the volume of sales of newly-mined gold decision by the IMF. The IMF statement announcin the market. ing the decision and letters to the IMF from South The Fund decision, which is taken without prej- African and U.S. authorities are reproduced below. udice to the determination of the legal position under the Fund's Articles of Agreement, is to be re- IMF ANNOUNCEMENT viewed whenever requested because of a major After noting a policy statement of South Africa change in circumstances and in any event after five with respect to the sale of gold and the handling of years. The Fund also has accepted at this time an its reserves, the International Monetary Fund to- offer previously made by South Africa to sell gold day decided that it will buy gold offered to it by to the Fund in return for 14.5 million pounds South Africa whenever the latter indicates that the sterling. offer is in accordance with this statement. South Africa has also stated that when selling Under this policy, South Africa may offer to sell gold other than in the private market it intends in gold to the Fund when the market price of gold practice normally to offer such gold to the Fund. falls to $35 per fine ounce or below, in amounts The Fund took the decision to purchase gold from necessary to meet current foreign exchange needs South Africa with the understanding that members during any such period. Further, South Africa may generally do not intend to initiate gold purchases sell gold to the Fund, regardless of the price in the directly from South Africa. Gold sold to the Fund private market, to the extent that South Africa has can be used by it whenever the Fund deems it necesa need for foreign exchange over a semiannual sary to replenish its holdings of member currencies. period beyond the need that can be satisfied by the Ordinarily, sales of gold to the Fund by South sale of all current new gold production in the private Africa will be subject to a charge of one-quarter market. of one per cent. At the same time South Africa intends to sell its current production of gold in an orderly manner in SOUTH AFRICAN LETTER the private market to the full extent of current pay- MINISTRY OF FINANCE ments needs. However, South Africa may offer to PRETORIA sell gold up to $35 million quarterly beginning Janu- 23rd December, 1969 ary 1, 1970 from the stock of gold it held on March Dear Mr. Schweitzer, 17, 1968, reduced by sales it made to monetary authorities (including Fund-related transactions) after As you know, for some time the Republic of that date and also by such future sales to monetary South Africa has been discussing with the United authorities as it may make to finance deficits or as a States, with other members, and with you proceresult of Fund-related transactions. dures for the orderly sale of newly-mined gold in South Africa would also continue to use gold in the market and the sale of gold to the International accordance with the Articles and past decisions of Monetary Fund. I wish to inform you that as a re- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 FEDERAL RESERVE BULLETIN n JANUARY 1970 suit of these discussions, the South African authori- when Rand are included in drawings under ties have adopted a policy with respect to gold sales normal Fund procedures. These Fundand I would like to request that the Fund confirm related transactions, which may take place that it will be prepared in the light of this statement without regard to the market price of gold, of policy to buy gold from South Africa in the will be reflected by changes in the composicircumstances and under the conditions set forth tion of South Africa's reserves but will not below. affect the volume of sales of newly-mined The following are the intentions of the South gold in the market. African authorities as to the handling of newly- (3) Notwithstanding paragraphs (l)(b) and mined gold and reserves. (2) (a) above, the amount of gold held by (1) Without prejudice to the determination of South Africa on March 17, 1968, reduced by the legal position under the Articles of Agree- sales by South Africa to monetary authorities ment of the Fund, the South African authori- (including Fund-related transactions) after ties may offer to sell gold to the Fund for the that date and further reduced by such future currencies of other members at the price of 35 sales to monetary authorities as may be made Dollars per ounce, less a handling charge, as to finance deficits or as a result of Fund-related follows: transactions, will be available for such addi- (a) During periods when the market price of tional monetary sales as the South African gold falls to 35 dollars per ounce or below, authorities may determine, up to 35 million at which times offers to sell gold to the Fund Dollars quarterly beginning January 1, 1970. under this paragraph (a) would be limited It is also contemplated that as an implementato amounts required to meet current foreign tion of this understanding, the Fund would exchange needs, and agree to purchase the amount of gold offered (b) regardless of the price in the private mar- to it by South Africa in May 1968. ket, up to the extent that South Africa ex- In order to determine whether South Africa has periences needs for foreign exchange over balance of payments surpluses or deficits as well as semi-annual periods beyond those which can to indicate other operational and procedural points be satisfied by the sale of all current new with respect to this policy, I enclose a memorandum gold production on the private market or by which clarifies these particular matters. sales to the Fund under paragraph (l)(a) It would be appreciated if, in the light of these above. policy intentions, the Fund were able to decide that (2) (a) The South African authorities intend it would purchase gold from South Africa in the to sell current production of newly-mined circumstances outlined above. I would expect that gold in an orderly manner on the private the Fund would review the situation at any time market to the full extent of current payif there were a major change in circumstances and ments needs. It is anticipated that new in any event after five years. production in excess of those needs during The South African authorities will work out with a semi-annual period may be added to rethe Managing Director consultation procedures on serves. the currencies to be purchased from the Fund with (b) When selling gold other than in the prigold. vate market, the South African authorities I hope that this announced policy, the implemenintend in practice normally to offer such gold tation of which I believe will be a contribution to to the Fund. the stability of the International Monetary System, (c) The South African authorities may use and my suggestion meet with the concurrence of the gold in normal Fund transactions, e.g. in re- Fund. A copy of this letter has been sent to the Secpurchase of appropriate drawings from the retary of the Treasury of the United States. Fund, and to cover the gold portion of any South African quota increase, and to obtain Yours sincerely, currency convertible in fact to exchange /s/ (N. Diederichs) against special drawing rights for which Minister of Finance South Africa is designated by the Fund. Republic of South Africa Rand drawn from the Fund by other mem- The Managing Director bers would generally be converted into gold International Monetary Fund Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ANNOUNCEMENTS 109 Operational and Procedural Points ings from the IMF, fall short of the amount allowable for an accounting period in which A. For the present purposes, balance of payments South Africa aims to finance its entire deficit by deficits and surpluses will be equal to the change these means, such shortfall will be added to the during the accounting period in the total of amount allowable for the next succeeding ac- South African official gold and foreign exchange counting period. reserves, the net IMF position and changes in 3. It is expected that any discrepancies under SDR holdings, and any foreign assets held by 1 and 2 above will be minimal. other South African banking institutions and 4. Should sales to monetary authorities under public agencies under swap arrangements with paragraph l(b), plus sales of SDRs and drawthe Reserve Bank. It is understood that changes ings from the IMF, fall short of the amount in gold holdings outside the monetary reserves allowable for an accounting period in which and in monetary banks' positions not covered byv South Africa does not aim to finance its entire Reserve Bank swaps are normally not signifi- deficit by these means but chooses to sell more cant. If they should at any time become signifi- on the free market than it undertakes to do in cant, further consideration will be given to their paragraph 2(a), no correction will be made for inclusion in the calculation. SDR allocations will any succeeding accounting period. not be considered as reducing a deficit or increas- E. When the price criterion is operative, sales of ing a surplus as above defined. South Africa gold to the IMF shall be attributed to the total does not envisage unusual or non-traditional deficit, if any, during the accounting period. The foreign borrowings or other special transactions balance of such sales, if any, will be attributed that would affect the elements listed in this parato newly mined gold to the extent of gold prograph. duction during the accounting period. B. Addition of newly mined gold to South African F. Sales or payments under paragraph 2(c) in conreserves under paragraph 2(a) will take place nection with IMF-related transactions are exwhen there is a surplus for an accounting period. pected to take place only within the criteria It is envisaged that all new gold production, less normally envisaged for IMF drawings by memdomestic consumption, during the accounting bers, for use of members' currencies in drawings period will be treated as a balance of payments by other members and for SDR transactions. credit item and that it will, in fact, be sold G. Fundamentally, it is expected that the composicurrently under paragraph l(a) and paragraph tion of South African reserves will not be greatly 2(a) to the full extent necessary to meet pay- changed. In particular, it is understood that the ments needs, except for the sales available under ratio of gold to total reserves will remain relaparagraph 3, apart from the Fund transaction tively stable. If South Africa should desire to initiated in May 1968. make additional sales of gold or otherwise ex- C. Sales of gold by South Africa to monetary au- change assets for the purpose of achieving a thorities under paragraph 1 (a) may be made for basic change in the composition of its reserve any day when both London fixing prices are holdings, further discussion would be held with $35.00 p.f.o. or below, in an amount reason- a view to clarifying intentions. ably commensurate with one-fifth of weekly sales from new production required to be mar- U.S. LETTER keted to meet balance of payments needs. D. Subject to paragraph 2(a): THE SECRETARY OF THE TREASURY WASHINGTON 1. Should sales to monetary authorities under paragraph l(b), plus sales of SDRs and draw- December 24, 1969 ings from the IMF by South Africa, exceed the Dear Mr. Schweitzer: deficit defined under paragraph A of this I have received a copy of the letter dated Decemmemorandum, such excess will be deducted from ber 23, 1969, sent to you by Mr. Diederichs in the amount allowable for the first succeeding which he sets forth the intentions which South accounting period wherein a deficit is again Africa proposes to follow with respect to the hanencountered. dling of its newly-mined gold and reserves. This 2. Should sales to monetary authorities under matter bears importantly on the continued effective paragraph l(b), plus sales of SDRs and draw- functioning of the two-tier gold market which was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 FEDERAL RESERVE BULLETIN a JANUARY 1970 initiated at a meeting on March 16-17, 1968, which that they do not intend to initiate official gold puryou attended. chases directly from South Africa. With this under- In view of the intentions of South Africa, and in standing, I believe that the policies to be followed view of discussions we have had with other Fund will be consistent with the stability and proper members, I should like to inform you that I have functioning of the international monetary system. instructed the U.S. Executive Director to take the Sincerely yours, following position. The United States is prepared /s/ to support decisions of the International Monetary Paul A. Volcker Fund to purchase gold offered for sale by South Acting Secretary Africa in the circumstances and under the conditions described in that letter, assuming that there is Managing Director an understanding among Fund members generally International Monetary Fund Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication January 16 Industrial production declined somewhat further and passenger equipment was maintained at record in December and nonfarm employment edged down levels in December, but production of farm equipbut the unemployment rate was unchanged. Indus- ment declined. Steel output was about unchanged, trial commodity prices continued to rise. The money while production of most other durable materials supply and time and savings deposits rose but U.S. declined. Government deposits declined, as did total bank credit. By mid-January, yields on U.S. Treasury EMPLOYMENT securities were down from the peak levels reached Nonfarm employment declined in December as emin late December. Between mid-December and midployment reductions in manufacturing, retail trade, January, yields on seasoned corporate bonds inand construction more than offset further increases creased. in State and local government and services. Manufacturing employment declined for the fourth suc- INDUSTRIAL PRODUCTION cessive month with reductions mainly in the auto- Industrial production declined for the fifth month motive and primary metals industries. The factory in a row in December to 170.9 per cent of the 1957- workweek, at 40.6 hours, was virtually unchanged 59 average. The index was down 0.3 per cent from from the October and November level. The over-all November and up 1.3 per cent from a year earlier. unemployment rate was unchanged in December at For the year 1969, industrial output was 4.4 per 3.4 per cent. cent larger than in 1968. Auto assemblies dropped 8 per cent further in RETAIL SALES December to a seasonally adjusted annual rate of The value of retail sales in December was virtu- 7.2 million units, and in early January production ally unchanged from November and about 4 per was cut again. Output of household appliances and cent above a year earlier. Retail sales at both durable television sets declined again in December and and nondurable goods stores were maintained but production of furniture continued at the reduced unit sales of new domestic autos declined in Decem- October-November level. Output of industrial and ber and in early January. commercial equipment changed little from the strike-lowered November rate. Output of freight COMMODITY PRICES INDUSTRIAL PRODUCTION Average industrial commodity prices rose 0.4 per 1957-59=100 cent from mid-November to mid-December as met- 180 als and machinery and equipment largely accounted MATERIALS f^*^ for the advance. Since then prices of copper and lead and some steel products have increased further. 140 jsz/f INAL PRODUCTS Consumer prices rose 0.5 per cent in November 120 reflecting large increases for food, apparel, and services. 200 BUSINESS /\ r~,M DURABLE -T\ - EQUIPMENT/ ^~sp^ 180 AGRICULTURE MANUFACTURES ^ / O -i 160 The uptrend in farm output continued in 1969 as crop production set a new high and livestock out- *f^ > >^~*NO M N A D N U U R FA A C B T L U E RES •/S>/CONSUMER GOODS put was maintained at the 1968 record level with beef and poultry meat exceeding 1968 output. Prosi i i i i pects for the first half of 1970 are for increased production from a year earlier of beef, broilers, and eggs, little change in milk, and some decline in pork. F.R. indexes, seasonally adjusted. Latest figures: December. Ill Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 FEDERAL RESERVE BULLETIN • JANUARY 1970 BANK CREDIT, DEPOSITS, AND RESERVES large banks in New York continued to sell CD's to foreign official sources. Consumer-type time and Commercial bank credit declined $1.1 billion in Desavings deposits expanded at large banks, although cember, offsetting about a third of the November the increase was smaller than in December of other increase. Holdings of U.S. Treasury securities derecent years. clined substantially, reflecting in part sales of tax- Net borrowed reserves of member banks averanticipation bills acquired in the Treasury's lateaged about $870 million over the 5 weeks ending November financing. Holdings of other securities December 31 compared with $975 million in Noalso declined. Repayments of broker-dealer loans vember. Member bank borrowings declined somewere large following substantial borrowings over what and excess reserves increased slightly. the two previous months. Business loans, however, increased at a somewhat faster pace than earlier in SECURITIES MARKETS the fourth quarter while most other loan categories Yields on U.S. Treasury securities have declined continued to show moderate growth. from their peak levels reached in late December. The money supply rose by $300 million in De- The 3-month bill was around 7.85 per cent in midcember, bringing the monthly average expansion to January, down from a record level of 8.08 per cent $200 million in the fourth quarter compared with on December 29. Over the same period, rates on inno change in the third quarter and a $700 million termediate and long-term Government notes and monthly average expansion earlier in the year. U.S. bonds declined around 25 to 30 basis points. Government deposits declined somewhat in Decem- Yields on municipal and newly issued corporate ber following a sharp buildup in November. Time bonds were down during the mid-December to midand savings deposits increased $700 million—the January period, while seasoned corporate bond first monthly rise in 1969. Attrition of large-denom- yields increased. Stock prices rose slightly, on balination negotiable CD's was smaller than usual as ance, with a moderate volume of trading. PRICES Wholesale INTEREST RATES 1965 1966 1967 1968 1969 1970 Bureau of Labor Statistics "Farm products and foods" is Discount rate, range or level for all F.R. Banks. Weekly BLS "Farm products and processed foods and feeds." Latest average market yields for U.S. Govt. bonds maturing in 10 figures: Consumer, November; Wholesale, December. years or more and for 90-day Treasury bills. Latest figures: week ending Jan. 9. Digitized for FRASER http://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 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN • JANUARY 1970 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 A 101 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation p Preliminary IPC Individuals, partnerships, and corporations r Revised SMSA Standard metropolitan statistical area rp Revised preliminary A Assets I, II, L Liabilities III, IV Quarters S Sources of funds n.a. Not available U Uses of funds n.e.c. Not elsewhere classified * Amounts insignificant in terms of the par- 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 include 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 Semiannually Issue Page Annually—Continued Issue Page Banking offices: Flow of funds: Analysis of changes in number of.. . Aug. 1969 A-94 Assets and liabilities: On, and not on, Federal Reserve 1967 May 1968 A-67.10 Par List, number Aug. 1969 A-95 1955-68 Nov. 1969 A-71.10 Flows: 1955-68 Nov. 1969 A-70 Annually Bank holding companies: Income and expenses: List of, Dec. 31, 1968 June 1969 A-91 Federal Reserve Banks Feb. 1969 A-92 Banking offices and deposits of Member banks: group banks, Dec. 31, 1968 Aug. 1969 A-96 Calendar year May 1969 A-95 Operating ratios May 1969 A-104 Insured commercial banks May 1969 A-107 Banking and monetary statistics, 1968.. Mar. 1969 A-92—A-102 May 1969 A-91—A-94 Banks and branches, number, by class Stock exchange firms, detailed debit and State Apr. 1969 A-91 and credit balances Sept. 1969 A-94 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS n JANUARY 1970 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding U.S. Govt. securities > Treas- Period or date ury Dis- Gold cur- Held counts Other stock rency under and Float 2 F.R. Total < out- Bought repur- ad- assets 3 stand- Total out- chase vances ing right agreement Averages of daily figures 1929 June 179 179 978 61 1 317 4 024 2,018 1933 June 1 933 1 933 250 12 2 208 4 030 2,295 1939 Dec 2 510 2 510 8 83 2 612 17 518 2,956 1941 Dec 2 219 2 219 5 170 2 404 22 759 3,239 1945 Dec 23 708 23 708 381 652 24 744 20 047 4,322 1950 Dec 20 345 20,336 9 142 1 117 21 606 22 879 4,629 1960 Dec . . 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965 Dec ... . 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966 Dec 43,760 43,274 486 570 2,383 46,864 13,158 6,284 1967 Dec 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968 Dec 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 52,074 191 824 2,602 55,786 10,367 6,806 Mar 52,122 51,987 135 918 2,367 55,477 10,367 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 54,028 53,926 102 1.407 2,463 2,614 60,565 10,367 6,746 July 54,298 54,252 46 ,190 2,684 2,670 60,887 10,367 6,737 54,599 54,334 265 ,249 2,302 2,672 60 876 10,367 6,739 Sept 53,840 53,722 118 ,067 2,477 3,032 60,459 10,367 6,761 Oct 54,708 54,497 211 ,135 2,462 3,153 61,516 10 367 6,785 Nov 56 499 56,424 75 ,241 2,541 2,460 62 788 10 367 6,810 57,500 57,295 205 ,087 3,217 2,204 64,083 10 367 6,841 Week ending— 1969 Oct 1 54,123 53,813 310 ,436 2,184 3,300 61,083 10,367 6,777 8 54,408 54,030 378 967 2,316 3,224 60,987 10,367 6,781 15 54,922 54,566 356 ,347 2,165 3,182 61,690 10,367 6,779 22 54,890 54,738 152 ,015 3,031 3,137 62,129 10,367 6,785 29... 54,557 54,557 ,179 2,377 3,117 61,270 10,367 6,792 Nov 5 . . 55,624 55,345 279 ,328 2,172 2,945 62 116 10 367 '6,802 12 56,007 55,930 77 ,244 2,312 2,881 62 491 10,367 6,804 19 56 745 56 745 071 2,892 2 380 63 131 10 367 6,809 26 56 909 56,909 ,210 2,717 2,026 62 910 10 367 6,819 Dec 3 57,479 57,311 168 ,191 2,539 2,008 63,273 10,367 6,823 10" 57,664 57,483 181 ,199 2,656 2,035 63,621 10,367 6,836 17" 57,435 57,279 156 ,043 3,013 2,134 63,702 10,367 6,841 24s 57 237 57 173 64 094 3 572 2 248 64 216 10 367 6,846 31" . 57,491 57,154 337 ,104 3,975 2,480 65,148 10,367 6,848 End of month 1969 Oct 55,532 55,286 246 ,691 2,343 2,927 62,534 10,367 6,802 Nov .. 57,318 57 318 .531 2,705 1 996 63 599 10 367 6,823 Dec" . 57 154 657 154 '183 3,450 2 743 63 594 10 367 6,848 Wednesday 1969 Oct 1 53,845 53,845 1,181 2,181 3,259 60,503 10,367 6,779 8 54,349 54,138 211 788 2,182 3,165 60,546 10,367 6,782 15 55,398 54 874 524 1,183 2,117 3,140 61,925 10,367 6,781 22 53,893 «53 893 585 2,560 3,110 60 188 10 367 6,787 29 54,783 6 54,783 1,175 2,126 3,019 61,143 10,367 6,802 Nov 5 . . 56 254 55 746 508 1 204 1,997 2 997 62 513 10 367 6,803 12 . 56,297 56,297 695 1,698 2,907 61,639 10,367 6,805 19 56,803 56,803 652 3,000 2,009 62,509 10,367 6,814 26 56 708 6,756 708 1 146 2 296 2 019 62 219 10 367 6 818 Dec 3" 57,832 6 57 656 176 814 2,640 2,043 63 390 10 367 6,829 10" 57 153 657 153 666 2 580 2 082 62 539 10 367 6 839 17" 57,584 657'229 355 682 3,362 2 257 63*988 10*367 6,844 24" 57,609 6 57 160 449 721 3,844 2,264 64 539 10 367 6,846 31" .. . 57,154 657,154 183 3,450 2,743 63,594 10,367 6,848 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n 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 en u c r y - Treas- with F.R. Banks Other O F t . h R e . r Period or date in ury F.R. liacir- cash ac- bilities c t u io la n - h in o g ld s - T u re r a y s- F ei o g r n - Others counts3 ca a p n it d al' B W F a . n R it k h . s r c C a e o n n u in c d r y - 5 Total Averages of daily figures 4,400 210 30 30 376 2,314 2,314 1929—June 5,455 272 81 164 350 2,211 2,211 1933—June 7,609 2,402 616 739 248 11,473 11,473 1939—Dec. 10,985 2,189 592 1,531 292 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. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .1968—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 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 51,328 671 881 141 469 2,062 22,430 4,649 27,079 .Aug. 51,438 678 597 128 454 2,055 22,238 4,733 26,971 . Sept. 51,683 665 983 121 479 2,078 22,659 4,681 27,340 ..Oct. 52,468 666 1,074 135 445 2,140 23,037 4,727 27,764 .Nov. 53,591 656 1,194 146 458 2,192 23,054 4,958 28,012 .Dec.* Week ending— 51,197 666 1,130 123 464 2,055 22,591 4,809 27,400 .1968—Oct. 1 51,454 666 912 134 497 2,152 22,320 4,833 27,153 51,849 670 1,104 116 511 2,018 22,567 4,812 27,379 .15 51,819 663 943 117 462 2,209 23,248 4,366 27,614 .22 51,650 660 945 117 450 2,085 22,522 4,650 27,172 .29 51,833 662 ,114 136 463 2,183 22,894 4,767 27,661 .Nov. 5 52,314 670 ,155 137 447 2,139 22,800 4,925 27,725 12 52,551 662 ,074 147 436 2,068 23,370 4,599 27,969 19 52,687 661 ,018 122 436 2,138 23,033 4,568 27,601 26 53,064 659 ,022 123 455 2,238 22,902 4,835 27,737 .Dec. 3 53,287 652 ,183 138 427 2,318 22,819 4,928 27,747 10* 53,525 656 975 149 437 2,126 23,042 4,940 27,982 17* 53,757 651 ,246 143 449 2,133 23,050 4,839 27,889 24» 53,975 659 ,405 163 517 2,153 23,492 5,177 28,669 31* End of month 51,710 649 954 131 452 2,181 23,628 4,767 28,395 . 1969—Oct. 52,991 633 980 130 453 2,218 23,385 4,835 28,220 Nov. 53,885 657 1,312 134 807 1,919 22,095 5,177 27,272 Dec* Wednesday 51,356 658 1,058 134 476 2,095 21,872 4,813 26,685 1969—Oct. 51,809 668 1,148 123 503 2,173 21,271 4,842 26,113 51,998 677 784 142 484 1,993 22,995 4,818 27,813 .15 51,798 669 1,330 109 449 2,042 20,945 4,367 25,312 .22 51,783 663 1,055 119 462 2,103 22,127 4,652 26,779 .29 52,138 677 1,027 208 471 2,221 22,942 4,767 27,709 .Nov. 5 52,617 669 874 106 448 2,007 22,091 4,924 27,015 12 52,655 665 1,099 147 398 2,087 22,639 4,598 27,237 19 53,015 661 853 109 427 2,167 22,173 4,569 26,742 26 53,253 659 1,267 113 465 2,286 22,544 4,834 27,378 .Dec. 3" 53,555 657 1,116 104 416 2,316 21,581 4,928 26,509 10" 53,684 667 861 128 450 2,110 23,299 4,940 28,239 17* 54,029 657 1,058 168 521 2,163 23,156 4,839 27,995 24* 53,885 657 1,312 134 807 1,919 22,095 5,177 27,272 31* 1 U.S. Govt. securities include Federal agency obligations. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning with 1960 reflects a minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 1961 BULLETIN, p. 164. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 3 Beginning Apr. 16, 1969, "Other F.R. assets" and "Other F.R. of-business figures for reserve period 2 weeks previous to report date. liabilities and capital" are shown separately; formerly, they were « Reflects securities sold, and scheduled to be bought back, under netted together and reported as "Other F.R. accounts." matched sale/purchase transactions. 1 Includes industrial loans and acceptances, when held (industrial ' Includes securities loaned—fully secured by U.S. Government loan program discontinued Aug. 21, 1959). For holdings of accept- securities pledged with Federal Reserve Banks. ances on Wed. and end-of-month dates, see subsequent tables on F.R. Banks. See also note 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS n JANUARY 1970 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor- Reserves Bor- Reserves Bor- T h o e t l a d l qu R i e r - ed 1 Excess B r i F a o n a n . w g t R k s - . s s F er r r v e e e e - s T h o e t l a d l qu R ir e e - d 1 Excess B r F i a n o a . n R w g t k s . - s s F e r r r e v e - e e s T h o e t l a d l qui R re e d - 1 Ba r F in o n a . g R w k t s s . - s F e r r r e v e - e e s 1929—June 2,314 2,275 42 974 -932 762 755 174 -167 161 161 1 63 -62 1933—June 2 2,160 1,797 363 184 179 861 792 69 69 211 133 78 78 1939—Dec 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 3 1960—Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 -4 1962—Dec 20,040 19,468 572 304 268 3,863 3,817 46 108 -62 1,042 ,035 7 18 -11 1963—Dec 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 ,051 5 26 -21 1964—Dec 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 ,086 -3 28 -31 1965—Dec 22,719 22,267 452 454 4,301 4,260 41 111 -70 1,143 ,128 15 23 -8 1 1 9 9 6 6 7 6 — — D D e e c c 2 2 3 5 , , 8 2 3 6 0 0 2 24 3 , , 9 4 1 3 5 8 3 34 9 5 2 5 2 5 3 7 8 -1 1 6 0 5 7 4 5 , , 5 0 8 5 3 2 4 5 , , 5 0 5 3 6 4 2 1 7 8 1 4 2 0 2 - - 9 2 5 2 1 1, , 2 1 2 1 5 9 , , 1 2 1 1 5 7 4 5 1 4 3 - - 5 5 0 1968—Dec 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 ,184 85 -70 1969—Jan 28,063 27,846 217 697 -480 5,397 5,392 5 65 -60 1,286 ,287 -1 48 _49 Feb 27,291 27,063 228 824 -596 5,190 5,194 -4 63 -67 1,259 ,253 6 39 -33 Mar 26,754 26,537 217 918 -701 5,040 5,019 21 65 -44 1,204 ,207 -3 98 -101 Apr 27,079 26,927 152 996 -844 5,039 5,045 -6 111 -117 1,202 ,202 116 -116 May 27,903 27,603 300 ,402 -1,102 5,174 5,134 40 129 -89 1,277 ,281 -4 144 -148 June 27,317 26,974 343 ,407 -1,064 4,962 4,894 68 96 -28 1,241 ,206 35 27 8 J D A S O N u e c u o e l p v t y g c t * 2 2 2 2 2 2 6 6 7 7 8 7 , , , , , , 9 0 9 3 7 0 7 7 8 4 6 1 1 9 0 0 4 2 2 2 2 2 2 2 6 6 6 7 7 7 , , , , , , 5 7 7 8 7 1 1 3 7 9 6 7 1 5 6 7 4 4 2 3 2 2 1 1 5 0 3 3 1 4 3 3 6 8 6 3 ! , , , , , 2 l 1 2 0 0 4 3 9 4 6 8 1 5 0 9 7 7 -1 - - - - - , 8 8 9 9 9 0 3 4 8 9 4 7 1 9 8 2 6 4 4 4 4 5 5 5 , , , , , , 1 4 9 8 3 9 9 3 6 3 7 9 5 5 3 7 6 0 4 5 4 4 5 5 , , , , , , 8 3 1 9 9 3 1 8 8 6 2 5 7 5 3 7 2 0 2 4 2 2 5 1 0 1 3 6 0 2 2 1 1 6 8 9 8 3 6 0 6 3 7 8 9 - - - 1 1 2 - - - 6 5 6 4 2 1 6 2 4 3 6 0 1 1 1 1 1 1 , , , , , 1 1 2 2 2 2 9 8 8 2 0 4 7 8 3 8 0 4 , , , , , , 2 2 2 1 1 2 3 0 6 9 8 5 5 7 7 6 6 4 - - 1 1 -8 1 1 0 0 4 6 3 5 5 2 1 5 9 1 7 7 9 - - - - - - 1 1 4 6 2 3 1 5 7 7 6 7 Week ending— 1968—Dec. 4.. 26,859 26,380 479 531 -52 5,038 4,862 176 74 102 1,187 ,155 32 13 19 11.. 26,461 26,409 52 434 -382 4,823 4,937 -114 86 -200 1,157 ,174 -17 -17 18.. 27,088 26,720 368 575 -207 5,223 5,121 102 104 -2 1,187 ,185 2 45 -43 25.. 27,232 26,812 420 859 -439 5,122 5,017 105 282 -177 1,175 ,162 13 149 -136 1969—July 2.. 27,500 27,004 496 ,634 -1,138 5,013 4,857 156 138 18 1,220 ,202 18 10 9.. 27,176 27,063 113 ,020 -907 4,816 4,870 -54 -54 1,209 ,222 -13 5 -18 16.. 27,275 27,099 176 ,279 -1,103 5,027 4,971 56 137 -81 1,261 ,265 -4 15 -19 23.. 27,164 26,782 382 ,354 -972 4,909 4,822 87 89 1,200 ,190 10 10 30.. 26,594 26,448 146 ,269 -1,123 4,630 4,593 37 154 -117 1,143 ,152 -9 -13 27,042 26,791 251 ,090 -839 4,844 4,829 15 18 -3 1,214 ,199 15 15 AuB>!:: 26,960 26,627 333 ,329 -996 4,843 4,784 59 135 -76 1,211 ,210 1 139 -138 20.. 27,159 27,100 59 ,221 -1,162 5,101 5,164 -63 136 -199 1,224 ,216 8 27.. 26,909 26,697 212 ,204 -992 4,941 4,896 45 64 -19 1,145 ,164 -19 '-25 Sept. 3.. 26,950 26,548 402 ,240 -838 4,945 4,922 23 84 -61 1,215 ,186 29 29 10.. 26,941 26,550 391 740 -349 5,086 4,941 145 64 81 1,183 ,179 4 5 -1 17.. 26,814 26,682 132 ,018 -886 4,947 4,984 -37 129 -166 1,182 ,190 9 -17 24.. 26,931 26,727 204 ,106 -902 4,926 4,915 11 111 -100 1,169 ,166 39 -36 Oct. 1.. 27,400 27,080 320 1,436 -1,116 5,134 5,062 72 99 -27 1,211 ,212 -1 158 -159 8.. 27,153 27,014 139 967 -828 5,012 5,041 -29 198 -227 1,192 ,197 -5 15.. 27,379 27,161 218 1,347 -1,129 5,222 5,186 36 222 -186 1,242 ,231 11 22 -11 2 29 2 . . . . 2 2 7 7 , , 6 1 1 7 4 2 2 2 7 7 , , 4 0 5 9 8 2 1 8 5 0 6 1 1 , , 1 01 7 5 9 -1 - , 8 0 5 9 9 9 5 5, , 1 2 5 9 8 6 5 5, , 1 3 4 5 8 5 -5 1 9 0 4 6 2 5 -10 5 1 5 1 1 , , 2 2 7 2 1 7 (, 2 23 7 9 2 -12 1 1 5 6 - -2 1 8 6 Nov. 5.. 27,661 27,365 296 1,328 1,032 5,347 5,257 90 144 -54 1,272 ,254 18 189 171 12.. 27,725 27,354 371 1,244 -873 5,404 5,318 86 350 -264 1,246 ,244 85 -83 19.. 27,969 27,823 146 1,071 -925 5,588 5,559 29 25 4 1,287 ,279 8 8 26.. 27,601 27,463 138 1,210 -1,072 5,275 5,269 6 8 -2 1,232 ,237 -5 -6 Dec. 3.. 27,737 27,534 203 1,191 -988 5,300 5,294 6 266 -260 1,229 ,227 2 1 10". 27,747 27,492 255 1,199 -944 5,438 5,354 84 299 -215 1,253 ,257 A -4 17*. 27,982 27,926 56 1,043 -987 5,463 5,471 -8 164 -172 1,289 ,287 2 2 24*. 27,889 27,615 274 1,094 -820 5,251 5,238 13 296 -283 1,239 ,238 1 31». 28,669 28,161 508 1,104 -596 5,620 5,515 105 348 -243 1,321 ,304 17 120 -103 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 ld al Required i Excess Banks T h o e t ld al Required' Excess Banks 761 749 12 409 —397 632 610 22 327 305 1929—June 648 528 120 58 62 441 344 96 126 —30 1933—June 3.140 1,953 1 188 1 188 1,568 897 671 3 668 1939—Dec. 4.317 3,014 1 303 1 1 302 2,210 1.406 804 4 800 1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 1950 Dec 7,950 7.851 100 20 80 6,689 6,066 623 40 583 1960—Dec. 8,178 8,100 78 130 —52 6,956 6,515 442 48 394 1962 Dec. 8,393 8,325 68 190 — 122 7,347 6,939 408 74 334 1963 Dec. 8,735 8,713 22 125 -103 7,707 7,337 370 55 315 1964—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 1965—Dec. 9,509 9,449 61 220 -159 8 619 8,318 301 161 140 1966—Dec. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 1967—Dec. 10,990 10,900 90 270 -180 9,875 9,625 250 180 70 1968 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 Apr. 11,275 11,195 80 618 -538 10,177 9,993 184 511 327 May 10,986 10,922 64 713 —649 10,128 9,952 176 571 395 10,752 10,846 —94 517 —611 10,194 9,994 200 582 382 July 10,814 10,730 84 480 -396 10,114 9 928 186 637 451 10,668 10,654 14 461 -447 10,113 9,928 185 468 -283 10,745 10,772 -27 531 -558 10,172 10,007 165 447 -282 Oct 10,888 10,841 47 572 -525 10,256 10,066 190 443 -253 Nov 10,963 10,964 479 -480 10,330 10,158 172 321 -149 Week ending— 10,824 10,788 36 247 -211 9,810 9,575 235 197 38 1968 Dec 4 10,745 10,772 -27 199 -226 9,736 9,526 210 149 61 11 10,878 10,846 32 230 -198 9,800 9,568 232 196 36 . ..18 10,973 10,942 31 260 -229 9,961 9,691 270 168 102 . .25 11,012 10,907 105 791 —686 10,255 10,038 217 697 480 ... 1969 July 2 10,921 10,966 —45 494 -539 10,230 10,005 225 521 296 9 10,877 10,946 — 69 628 —697 10,110 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 10 747 10 703 44 466 —422 10,159 9 930 229 589 360 13 10,774 10,811 —37 453 —490 10,060 9,909 151 624 473 20 10,710 10,690 20 501 -481 10,113 9,947 166 633 467 ... 27 10,709 10,587 122 463 -341 10,081 9,853 228 664 436 Sept 3 10,634 10,612 22 206 -184 10,038 9,818 220 465 -245 10 10 644 10,669 —25 457 —482 10,041 9,839 202 423 221 . . 17 10 685 10,645 40 566 -526 10,151 10,001 150 390 240 24 10,786 10,724 62 626 -564 10,269 10,082 187 553 -366 Oct. 1 10 737 10,744 —7 351 — 358 10,212 10,032 180 418 238 g 10,813 10,824 -11 664 — 675 10,102 9,920 182 439 257 15 10,894 10,846 48 562 -514 10,153 9,985 168 396 228 . . 22 10,613 10,669 -56 587 -643 10,174 10,036 138 511 — 373 . 29 10,815 10,804 U 505 —494 10,227 10,050 177 490 313 Nov 5 10,881 10,821 60 400 -340 10,194 9,971 223 409 — 186 12 10,908 10,949 -41 625 -666 10,186 10,036 150 421 — 271 19 10,801 10,801 697 -697 10,293 10,156 137 504 —367 . .26 10,879 10,858 21 545 -524 10,329 10,155 174 379 205 Dec 3 10,837 10,822 14 520 -506 10,220 10,059 162 380 -218 10*> 10,975 11,028 -71 584 -655 10,275 10,140 137 295 -158 17i> 11,059 10,962 97 506 -409 10,340 10,177 163 292 -129 24" 11,177 11,091 86 338 -252 10,552 10,251 302 298 -4 31P 1 Beginning Sept. 12, 1968, amount is based on close-of-business fig- weeks ending on Wed. that fall within the month. Beginning with Jan ures for reserve period 2 weeks previous to report date. 1964, reserves are estimated except for weekly averages. 2 This total excludes, and that in the preceding table includes, $51 Total reserves held: Based on figures at close of business through Nov. million in balances of unlicensed banks. 1959; thereafter on closing figures for balances with F.R. Banks and opening 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS o JANUARY 1970 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, unless otherwise noted) Basic reserve position Interbank Federal funds transactions U R .S e . l a G te o d v t t . r s a e n c s u a r c i t t i i o e n s s d w ea i l t e h rs Less— Net- Gross transactions Net trarsactions Reporting banks week a e n n d ding— s E e x r r v c e e e - s s s ! r a B o t B w a F o n i r n . k R - g s s . F f t i b e n u r N d a a t n e n e e n d t r r k s s - a . l S d u e r o f p i r c l i u t s r P r e e e q a s r o e u v r c f g ir v e . e n e d s t c P h u a r s - es Sales t a w t c T r t o a o i - o n t w a n s l a - s2 y b c o b P h u f a u a y n n r s i k e n - e t s s g s o b S e f a l a l n n l i e n k e s t g s de L a o t le a o r n s s 3 de f r B i r a o n o o l w g e r m r s - - s* lo N a e n t s Total—46 Banks 1969—Nov. 5 142 543 3,048 -3,449 28.9 6,133 3.085 2,677 3,456 407 1,018 155 863 12 251 646 4,801 -5,196 43.2 7,369 2,568 2,283 5,086 285 898 161 738 19 94 390 4,151 -4,448 36.0 7,343 3,192 2,600 4,743 592 828 186 642 26 43 446 2,771 -3,174 26.7 5,889 3,118 2,451 3,438 667 854 179 675 Dec 3 16 573 3,515 — 4,072 34.0 6,505 2,990 2,714 3,791 276 1,190 152 1,038 10 133 557 4,501 —4,924 40.8 7,116 2,615 2,297 4,819 318 831 165 666 17 53 461 4,539 -4,946 40.1 7,413 2,874 2,554 4,859 321 762 143 619 24 107 652 4,551 —5 097 42.5 7,144 2,593 2,571 4,573 23 945 162 783 31 340 653 4,315 4 629 37.6 7,101 2,786 2,551 4,549 235 1,052 155 897 8 in New York City 1969 Nov 5 94 121 199 —227 4 7 1,731 1,532 1,293 438 238 809 139 670 12 149 350 1,583 — 1 784 36 7 2,200 617 600 1,600 17 750 136 614 19. . 94 1,396 -1 302 25 6 2,519 1,124 992 1,527 132 660 132 528 26. . . 31 8 568 -545 11 3 1,752 1,184 977 774 206 630 127 504 Dec 3. ... 13 266 1,065 -1,318 27 3 2,065 1,000 941 1,124 59 921 98 822 10 105 293 1 528 1 716 35 1 2 231 703 703 1 528 650 87 563 17 65 164 1 394 1 494 29 9 2 392 997 998 1 394 612 96 517 24 45 296 974 -1,224 25.7 2,071 1,098 1,082 989 15 816 137 679 31 178 319 1 243 1 384 27 5 2 204 961 961 1 243 896 130 766 38 outside New York City 1969 Nov 5 48 422 2,849 -3 223 45 1 4,402 1 553 1.384 3,018 169 209 16 194 12 101 296 3,217 — 3,412 47 6 5,169 1,952 ,683 3,486 268 148 24 124 19 390 2,756 -3 146 43 3 4,824 2,068 ,608 3,216 460 168 54 114 26 12 438 2,203 —2,629 37.2 4,137 1,935 ,474 2,663 461 223 52 171 Dec 3 3 307 2,450 -2,754 38.5 4,440 1,990 ,772 2,668 217 269 54 216 10 28 264 2,973 -3,209 44.7 4,885 1,912 ,594 3,291 318 181 78 103 17 -12 297 3,145 -3,453 47.0 5,021 1,876 ,556 3,465 321 149 47 102 24 61 356 3,577 -3,873 53.5 5,073 1,495 ,488 3,584 7 129 25 104 31 162 334 3,072 -3,244 44.6 4,897 1,825 ,590 3,306 235 156 25 131 J in City of Chicago 1969 Nov 5 11 187 984 — 1 160 100 9 1,214 229 229 984 53 53 12 9 85 1 181 1 256 110 1 1 514 333 333 1 180 30 30 19 11 1 236 1 225 104 3 1 602 366 366 1 236 39 39 26 5 868 — 863 76 4 1 234 366 366 868 41 41 6 999 993 88 8 1 317 318 318 1 000 60 60 10 1 1 358 — 1 357 118 3 1 593 235 235 1 358 67 1 66 17 5 1 093 — 1 087 92 4 1 410 317 317 1 093 51 51 24 2 1 127 — 1 125 99 5 1 400 274 274 1 127 45 45 31 23 120 1 041 — 1,138 95 2 1,308 267 267 1 ,041 28 2 26 33 others 1969 Nov S 37 235 1 865 —2 063 34 4 3,189 1 324 1,155 2,034 169 156 16 141 12 92 211 2,037 -2,156 35.8 3,655 1,619 1,350 2,306 268 118 24 94 19 -11 390 1,519 -1,921 31.5 3,222 1,703 1,242 1,980 460 129 54 75 26 7 438 1,335 -1,766 29.7 2,903 1,569 1,108 1,795 461 182 52 130 Dec 3 -4 307 1,451 -1,761 29.2 3,123 1,672 1,455 1,668 217 209 54 156 10 27 264 1,615 -1,852 30.7 3,292 1,678 1,359 1,933 318 114 78 37 17 . . — 17 297 2,052 -2,366 38.4 3,611 1,559 1,239 2,373 321 98 47 51 24 59 356 2 451 —2,748 45.0 3,673 1,222 1,215 2,458 7 84 25 60 31 139 214 2,031 -2,106 34.7 3,589 1,558 1,323 2,266 235 128 23 104 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- * 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 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 BULLETIN, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n DISCOUNT RATES A 9 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per aminm) Discounts for and advances to member banks Advances to all others under last par. Sec. 13 ' Advances and discounts under Advances under Federal Reierve Bank Sees. 13 and 13a ' Sec. 10(b)2 D R e a 1 c t 9 e . 6 9 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t io e us D R e a 1 c t 9 e . 6 3 9 o 1 n , Ef d fe a c t t e ive Pre ra v t io e us D R e a 1 c t 9 e . 6 9 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t io e us Boston Apr. 8, 1969 Apr. 8, 1969 7 Apr. 8, 1969 New York... Apr. 4, 1969 Apr. 4, 1969 TA Apr. 4, 1969 Philadelphia.. Apr. 4, 1969 Apr. 4, 1969 Apr. 4, 1969 Cleveland Apr. 4,1969 Apr. 4, 1969 7V4 Apr. 4, 1969 Richmond... Apr. 4,1969 Apr. 4, 1969 Apr. 4, 1969 Atlanta Apr. 4, 1969 Apr. 4, 1969 7 Apr. 4, 1969 Chicago Apr. 4, 1969 Apr. 4, 1969 7 Apr. 4, 1969 St. Louis Apr. 4, 1969 Apr. 4, 1969 h Apr. 4, 1969 Minneapolis.. Apr. 4, 1969 Apr. 4, 1969 Apr. 4, 1969 Kansas City.. Apr. 4, 1969 Apr. 4, 1969 Apr. 4, 1969 Dallas Apr. 4, 1969 Apr. 4, 1969 Apr. 4, 1969 San Francisco Apr. 4, 1969 Apr. 4, 1969 7 Apr. 4, 1969 7 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. Maximum maturity: 90 days except that dis- ' Advances to individuals, partnerships, or corporations other than counts of certain bankers' acceptances and of agricultural paper may member banks secured by direct obligations of, or obligations fully have maturities not over 6 months and 9 months, respectively. guaranteed as to principal and interest by, the U.S. Govt. or any agency thereof. Maximum maturity: 90 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 AU 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 -1% 1955—Cont. 1960 1942 "*•.?:::::::::: 2 2& June 1 3 0 ¥ Apr. 11 I 14 Oct. 15 l Nov. 18 Aug. 12 3 3w 30 t'/4 23 Sept. 9 $ 1946 1956 1963 A M p a r y . 2 1 5 0 t 54-1 Apr. 2 1 0 3 July 2 1 6 7 3 3-4* Aug-£:::::::::: 1948 1964 J A a U n B . - M 1 1 9 2 :::::::::::::::::: l -154 Aug. 2 9 3 1957 Nov. 2 3 4 0 1965 3*-4 Nov. 15 33-3* Dec. 6 8 19J0 Dec. 2 13 4 4** Al*2:::::::::::::::::: "ti" Jan. 2 2 4 2 1958 Apr. 1 7 4 1967 4 -4V4 k 4 1953 Mar. 7 Nov. 20 \3* Jan. 16 13 27 23 21 Apr. 18 1968 t Feb. 5 1954 A M u a g y . 1 9 5 Mar. 2 1 2 5 45V4 k 5 * 15 ""•Si:::::::::: Apr. 19 Apr. 14 26 16 Oct. 24 Aug. 16 May 21 Nov. 7 30 Dec. 18 "ft* 1955 1959 20 Apr-l5:::::::::::::::::: Mar. 6 16 1969 May 2 May 29 '?Apr. 4 5W-6 Aug. 4 June 12 8 6 Sept. 11 12.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'.'. 18 In effect Dec. 31, 1969... t Preferential rate of */i 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 1 year or less. The rate of 1 per cent was Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. continued for discounts of eligible paper and advances secured by such 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, paper or by U.S. Govt. obligations with maturities beyond 1 year. 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, NOTE.—Discount rates under Sees. 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, 11-13,19,21,24,5.75; The rate charged by the F.R. Bank of N.Y. on repurchasec ontracts 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS n JANUARY 1970 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec 31,1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits *.' deposits 2 deposits 2.4 (all classes of banks) Time deposits Reserve Country Other Effective date > b C r a e e c s n n i e k t t r y r s v a e • l b s c R a e i r n t e v y k - e s C ba t o r n u y k n s - b cl a a ( o n a s f l s k l e s s ) Effective date ' Un c d it e y r ban O k v s er Unde b r ank O s ver d S i e n i p a t g v s o s - s- U ti n m de e r dep O os v i e ts r J5 mil- $5 mil- SS mil- $5 mil- S5 mil-$5 million lion lion lion lion lion In effect Dec. 31, 1949 22 18 12 5 1966—July 14,21 6V4 «12 64 64 5 Sept. 8,15 6 1951-^Jan 11 16 23 19 13 6 Jan. 25, Feb. 1 24 20 14 1967—Mar. 2 3W 314 1953—July 9,1 22 19 13 Mar. 16 3n 3 1954—June 24,16 21 5 July 29, Aug. 1.... 20 18 12 1968—Jan. 11,18 16V4 17 12 121A 1938—Feb. 27, Mar. 1 19W 17Vi HVi Mar.20, Apr. 1.... 19 17 11 1969—Apr. 17 17 1714 13 A A p p r r . . 2 1 4 7 IS* 16Vi In effect Dec. 31 1969 . 17 17V4 12& 13 3 3 6 1960—Sent 1 n\A Nov. 24 12 Present legal Dec 1 requirement: 1962—July 28 10 7 3 3 3 Oct 25 Nov 1.... 4 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. due from domestic banks. 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation 3 Authority of the Board of Governors to classify or reclassify cities club accounts became subject to same requirements as savings deposits. as central reserve cities was terminated effective July 23, 1962. 6 See preceding columns for earliest effective date of this rate. •Beginning Oct. 16, 1969, a member bank is required under Regulation M to maintain, against its foreign branch deposits, a reserve equal NOTE.—All required reserves were held on deposit with F.R. Banks to 10 per cent of the amount by which (1) net balances due to, and certain June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member assets purchased by, such branches from the bank's domestic offices and banks were allowed to count part of their currency and coin as reserves; (2) credit extended by such branches to U.S. residents exceed certain effective Nov. 24, 1960, they were allowed to count all as reserves. For specified base amounts. Regulation D imposes a similar 10 per cent reserve 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 50 60 70 50 70 90 70 50 70 70 80 Regulation U: For credit extended by banks on— Stocks 70 50 70 90 70 50 70 70 80 50 60 Regulation O: For credit extended by others than brokers and dealers and banks on- 70 80 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 conon 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Ian. 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 1964 196S 1966 1966 1968 Savings deposits: ' Savings deposits 4 4 4 L 12 es m s t o h n a th n s 1 o 2 r m m o o n r t e hs 4 3J4 4 3J4 M 4 Ot M he u r l t t i i p m le e m de a p tu os r i i t t s y : : * ' 90 days or more 5 5 5 Other time deposits: * Less than 90 days 4 4 4 (30-89 days) 12 months or more 4 1; Single-maturity: 6 months to 12 months Less than $100,000 5 5 90 days to 6 months $100,000 or more: Less than 90 days 4 30-59 days (30-89 days) 9 6 0 0 - - 1 8 7 9 9 d d a a y y s s 514 j 6 * 180 days and over 6V* 1 Closing date for the Postal Savings System was Mar. 28,1966. Max- NOTE.—Maximum rates that may be paid by member banks as estabimum 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 m b e a A m n l k b l e s r Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l k b l e s r Y N o e r w k C o i f ty Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending Nov. 5, 1969 Four weeks ending Dec. 3, 1969 Oross demand—Total.... 178,365 «, 163 7,242 62,203 66,757 Gross demand—-Total...182,628 43,831 7,404 63,294 68,099 Interbank 22,362 9,496 1,315 9,070 2,481 Interbank 23,108 S tm. 1,368 ,196 2,561 U.S. Govt 3,506 650 177 1,382 1,297 U.S. Govt 4 275 856 186 614 1,619 Other 152,498 32,017 5,751 51,750 62,979 Other 155,245 32,993 5,850 52,484 63,918 Net demand * 133,080 24,785 5,595 46,803 55,897 Net demand i 134,792 24,930 5,631 47,408 56,823 Time 150,859 14,581 4,641 55,999 75,638 Time 149,895 14,945 4,545 55,232 75,174 Demand balances due Demand balances, due from dom. banks 9,686 482 125 2,750 6,328 from dom. banks 9,894 508 163 2,693 6,528 Currency and coin 4,649 375 83 1,447 2,744 Currency and coin 4,733 391 84 1,476 2,781 Balances with F.R. Balances with F.R. Banks 22,808 4,881 1,170 9,337 7,420 Banks 23,026 5,001 1,165 9,391 7,470 Total reserves held 27,457 5,256 1,253 10,784 10,164 Total reserves held 27,759 5,392 1,249 10,867 10,251 Required 27,269 5,237 1,249 10,786 9,998 Required 27,544 5,361) 1,247 K,857 10,080 Excess 188 19 4 -2 166 Excess 215 12 2 10 171 l 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS • JANUARY 1970 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month 1969 1969 1968 Dec. 31 Dec. 24 Dec. 17 Dec. 10 Dec. 3 Dec. 31 Dec. 31 Assets Gold certificate account. 10,036 10,036 10,036 10,036 10,036 10,036 10,036 10,026 Cash 110 115 111 115 118 110 125 207 Discounts and advances: Member bank borrowings 183 721 682 666 814 183 1,531 186 Other Acceptances: Bought outright 64 59 60 58 53 64 49 58 Fe H de e r l a d l u a n g d e e n r c y r e o p b u l r i c g h a a ti s o e n a s— gre H em eld en u ts nder repurchase 42 43 8 agreements 90 57 20 U.S. Govt. securities: Bought outright: Bills 22,266 22,272 22,341 22,265 22,768 22,266 22,430 18,756 Certificates—Special. Other.. Notes 31,392 31,392 31,392 31,392 31,392 31,392 31,392 28,706 Bonds 3,496 3,496 3,496 3,496 3,496 3,496 3,496 5,475 Total bought outright 257,154 257,160 257,229 257,153 257,656 257,154 57,318 52,937 Held under repurchase agreements. 359 298. 156 Total U.S. Govt. securities. 57,154 57,519 57,527 57,153 57,812 57,154 57,318 52,937 Total loans and securities 57,401 58,431 58,369 57,877 58,707 57,401 58,898 53,181 Cash items in process of collection. . . "10,574 "11,415 "11,581 "9,379 rlO,072 "10,574 9,423 9,464 Bank premises 116 115 115 114 113 116 113 113 Other assets: Denominated in foreign currencies. 1,967 1,522 1,522 1,411 1,376 1,967 1,370 2,061 IMF gold deposited 1 219 219 219 219 219 219 219 230 All other 441 408 401 338 335 441 294 603 Total assets. "80,864 "82,261 "82,354 "79,489 ••80,976 0,864 80,478 75,885 Liabilities F.R. notes 47,473 47,624 47,287 47,157 46,869 47,473 46,594 44,726 Deposits: Member bank reserves "22,095 "23,156 "23,299 "21,581 "22,544 "22,095 23,385 21,818 U.S. Treasurer—General account. 1,312 1,058 861 1,116 1,267 1,312 980 703 Foreign 134 168 128 104 113 134 130 216 Other: IMF gold deposit ' 219 219 219 219 219 219 219 230 All other 588 302 231 197 246 588 234 517 Total deposits "24,348 "24,903 "24,738 "23,217 "24,389 "24,348 24,948 23,484 Deferred availability cash items 7,124 7,571 8,219 6,799 7,432 7,124 6,718 6,020 581 596 614 610 650 581 612 395 Other liabilities and accrued dividends "79,526 "80,694 "80,858 "77,783 "79,340 "79,526 78,872 74,625 Total liabilities Capital accounts Capital paid in 669 669 667 667 666 669 667 630 Surplus 669 630 630 630 630 669 630 630 Other capital accounts 268 199 409 340 309 Total liabilities and capital accounts "80,864 "82,261 "82,354 "79,489 "80,976 "80,864 80,478 75,885 Contingent liability on acceptances purchased for foreign correspondents 146 147 147 145 145 146 146 109 U.S. Govt. securities held in custody for foreign account 7,030 7,299 7,792 7,709 7,139 7,030 7,533 9,120 Federal Reserve Noes—Federal Reserve Agents Accounts F.R. notes outstanding (issued to Bank)... 50,412 50,264 49,992 49,757 49,443 50,412 49,281 47,560 Collateral held against notes outstanding: 3,222 3,222 3,222 3,287 3,287 •<,222 3,287 4,057 48,152 48,102 47,902 47,752 47,622 48,152 47,286 44,691 Total collateral 51,374 51,324 51,124 51,039 50,909 51,374 50,573 48,748 1 See note l(b) at top of p. A-75. 2 See Note 7 on page A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON DECEMBER 31, 1969 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a - - C la le n v d e- m Ri o c n h d - At t l a an- c C a h g i o - L S o t u . is M ap in o n li e s - K C s a a i n t s y - Dallas F c S i r s a a c n n o - Assets Gold certificate account 10,036 570 2,325 526 862 927 494 1,468 345 131 424 324 1,640 F.R. notes of other banks 7 1 7 10 7i 15 8 9 3; 6 1 8 0 6 6 8 9 1 1 5 4 1 9 4 2 1 9 0 21 4; 29 8 1 1 0 9 2 Discounts and advances: Secured by U.S. Govt. securities... 130 4' 11 6 17 14 5 1 33 1( 1 Acceptances: 64 64 Held under repurchase agreements. Federal agency obligations—Held U.S. Oovt. securities': 57,15 2,899 13,921 3,072 4,431 4,273 3,188 9,499 2,106 1,150 2,231 2,458 7,926 Held under repurchase agreements. Total loans and securities 57,40 2,901 14,037 3,073 4,435 4,285 3,227 9,518 2,121 1,153 2,249 2,475 7,927 Cash items in process of collection... sl2,999 786 2,499 74( 894 1,088 1,119 2,18; 622 432 882 725 1,025 116 i 6 11 18 10 6 18 8 9 Other assets: Denominated in foreign currencies.. 1,967 94 2500 102 175 102 126 291 69 45 85 112 266 219 219 All other 441 28 109 22 35 36 23 70 is 10 16 19 58 "84,060 4,462 19,865 4,505 6,485 6,523 5,113 13,614 3,221 1,801 3,725 3,700 11,046 Liabilities 48,244 2,755 11,264 2,757 3,953 4,327 2,642 8,458 1,797 819 1,775 1,747 5,950 Deposits: "22,095 834 5,831 996 1,575 1,108 1,322 2,950 824 538 1,056 1,233 3,828 U.S. Treasurer—General account.. 1,312 65 303 71 94 131 96 108 68 49 128 81 118 134 6 437 7 12 7 8 19 4 3 6 7 18 Other: I A M ll F o t g h o e l r d deposit 3 5 2 8 1 8 9 ""16 2 3 1 2 9 0 18 24 29 18 51 12 6 15 13 66 "24,348 921 6,710 1,092 1,705 1,275 1,444 3,128 908 596 1,205 1,334 4,030 Deferred availability cash items 9,549 693 1,398 557 663 809 909 1,734 449 344 666 520 807 Other liabilities and accrued dividends 581 29 139 31 44 44 32 96 21 12 23 25 85 82,722 4,398 19,511 4,437 6,365 6,455 5,027 13,416 3,175 1,771 3,669 3,626 10,872 Capital accounts 669 32 177 34 60 34 43 99 23 15 28 37 87 669 32 177 34 60 34 43 99 23 15 28 37 87 Total liabilities and capital accounts.. 84,060 4,462 19,865 4,505 6,485 6,523 5,113 13,614 3,221 1,801 3,725 3,700 11,046 Contingent liability on acceptances purchased for foreign correspond- 146 7 537 8 13 8 9 22 5 3 6 8 20 i Federal Reserve Notes—Federal Reserve Agents'Accounts F.R. notes outstanding (issued to Bank) 50,412 2,875 11,793 2,829 4 200 4,456 2 798 8,793 1,876 844 1,841 1,863 6,244 Collateral held against notes outstanding: 3,222 180 500 300 510 545 1000 155 27 5 Eligible paper 48,152 2,717 11,400 2,620 3750 3,955 2 850 7950 1,780 825 1,875 1,930 6,500 Total collateral 51,374 2,897 11900 2,920 4260 4,500 2 850 8950 1,935 852 1,875 1,935 6,500 1 See note 7 on page A-5. 4 After deducting $97 million participations of other Federal Reserve 2 After deducting $1,467 million participations of other Federal Re: Banks. Banks. 5 After deducting $109 million participations of other Federal Reserve 3 See note l(b) to table at top of page A-75. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT n JANUARY 1970 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 1year 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 1968—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 Oil 4 590 231 Feb 1 234 1 110 175 1 149 1 110 175 23 —8 479 33 6 095 Mar ... 385 65 381 217 65 381 49 574 73 —574 2,121 1,346 206 2,121 1,346 206 M^ly!!! 2 368 1 444 2 173 1 444 33 10 883 78 -10 895 4 586 3 993 7 4 586 3 993 7 July... 3 495 3 251 200 3 428 3 251 200 10 24 2 201 1 658 2 201 1 658 407 4 514 SeDt 4,762 5,483 115 4,762 5,483 115 Oct .. 5,145 '3,704 5,016 3,704 i -694 74 519 Nov.... 2,915 735 148 2,852 735 148 1,177 29 -40 28 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- change' Exch. Exch. secur- purchase Out- chase Gross or ma- Gross or ma- Gross ities agree- right, agreepur- Gross turity pur- Gross turity pur- Gross ments) net ments, chases sales shifts chases sales shifts chases sales net 1968 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 -4 137 Apr ... 1,929 1,790 708 54 5 43 810 May... 60 12 24 4,192 4,470 646 1 -5 -60 582 1,312 1,562 336 -80 C -30 220 July.... 23 10 560 560 44 -1 43 —4,921 2,721 2,491 773 39 * 22 834 1,121 1,062 -777 -39 -3 -22 -841 Oct 52 175 3 2,655 2,715 1,381 17 4 1,402 Nov.... 3 -1,137 4 1,031 1,260 1,803 -17 8 1,794 i Net change in U.S. Govt. securities, Federal agency obligations, and NOTE.—Sales, redemptions, and negative figures reduce System holdbankers' acceptances. ings ; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions 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 I * 2 1968 SeDt 1,281 698 13 4 452 75 33 3 Oct 1 273 694 124 4 378 65 1 4 3 Nov 2 211 1 443 111 4 571 75 1 4 3 Dec 2 061 1 444 8 3 433 165 1 4 3 1969 Jan 1 883 1 443 41 2 25 294 67 1 4 6 Feb 1,938 1,450 13 1 25 318 125 4 1 Mar 2,059 1,396 23 1 461 160 13 4 1 1,960 1,245 44 1 50 436 163 15 4 * May 1,889 1,542 50 176 100 * 15 4 1 June 1,834 1,564 50 115 * 15 86 2 July 1 670 1 383 50 24 15 196 * 1 929 1 571 224 15 114 3 Sept 2,330 1,693 204 * 315 114 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 Q FEDERAL RESERVE BANKS; BANK DEBITS A 15 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In mfllions of dollars) Wednesday End of month Item 1969 1969 1968 Dec. 31 Dec. 24 Dec. 17 Dec. 10 Dec. 3 Dec. 31 Nov. 30 Dec. 31 Discounts and advances—Total. 183 721 682 666 814 183 1,531 188 Within 15 days 180 717 677 659 811 180 1 527 186 16 days to 90 days 3 4 5 7 3 3 4 2 91 days to 1 year Acceptances—Total.. 64 101 103 58 61 64 49 58 Within 15 days.... 15 52 49 8 21 15 13 16 16 days to 90 days. 49 49 54 50 40 49 36 42 91 days to 1 year.. U.S. Government securities—Total. 57,154 57,609 57,584 57,153 57,832 57,154 57,318 52,937 Within 15 days' 2,148 2,943 2,122 1,392 2,403 2,148 1,373 2,017 16 days to 90 days 11,168 10,566 10,967 10,730 10,272 11,168 10,901 17,567 91 days to 1 year 22,707 22,969 23,364 23,900 24,026 22,707 23,913 8,919 Over 1 year to 5 years 12,811 12,811 12,811 12,811 12,811 12,811 12,811 12,880 Over 5 years to 10 years 7,642 7,642 7,642 7,642 7,642 7,642 7,642 10,943 Over 10 years 678 678 678 678 678 678 678 611 I 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 i 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 others 2 N.Y.) SMSA's SMSA's N.Y. 6 others 2 N.Y.) SMSA's 1968—Nov 8,541 5 3 925 9 1 904.1 4 615 6 2 711 5 65 7 142 7 63 3 45 0 37 4 Dec 8,755.8 4,076.8 1,902.4 4,679.0 2,776.6 66.0 144.8 62.1 44.8 37.6 1969—Jan 8,734.2 3,896.7 2,007.9 4,837.5 2,829.6 65.7 138.3 65.5 46.2 38.2 Feb 8,833.1 3 929.8 2 047.2 4 903.2 2 856.1 67 3 144.9 67.2 47.0 38 7 Mar 8,723.7 3,882.8 1,974.3 4,840.9 2 866.6 66.0 142.6 64.5 46.1 38.5 Apr 8,883.8 3 902.0 2,028.9 4 981.8 2,952.9 66.6 140.9 66.3 47.2 39 4 May 9,147.6 4,097.6 2,083.2 5,050.0 2,966.8 68.2 147.3 67.1 47.5 39.5 9,385.2 4,155.7 2,164.4 5,229.6 3,065.2 68.7 145.5 68.6 48.4 40.1 July 9,242.8 3,908.6 2,244.4 5,334.2 3,089.8 67.6 136.1 71.8 49.4 40.3 9,430.1 4,148.4 2,242.8 5,281.7 3,038.9 70.1 146.5 72.9 49.7 40.3 Sept 9,737.3 4,311.5 2,249.6 5,425.8 3,176.3 72.3 153.5 73.0 50.9 41.9 Oct 9 526.9 4 127.6 2 254.7 5 399.3 3 144.7 70 8 148 8 72 9 50.6 41 5 Nov 9,484.1 4,207.5 2,224.8 5,276.6 3,051.8 70.5 151.6 71.7 49.4 40.3 1 Excludes interbank and U.S. Govt. demand deposit accounts. NOTE.—-Total SMSA's includes some cities and counties not designated 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and as SMSA's. Los Angeles-Long Beach. For a description of series, see Mar. 1965 BULLETIN, p. 390. The data shown here differ from those shown in the Mar. 1965 BULLETIN because they have been revised, as described in the Mar. 1967 BULLETIN, p. 389. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY a JANUARY 1970 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in circulation ' Total Coin Jl 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 12 1958 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 33 918 24,388 2,582 1,588 92 2,313 6,878 10,935 9 531 2,869 6,106 242 300 3 10 1962 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 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 9,311 240 285 3 4 1968—Oct.. 48,719 34,421 5,565 1,900 136 2,763 8,336 15,722 14,299 4,028 9,734 241 289 3 4 Nov. 49,989 35,489 5,625 1,957 136 2,862 8,627 16,282 14,500 4,092 9,869 242 290 3 4 Dec. 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969—Jan.. 48,983 34,401 5,673 1,907 136 2,779 8,257 15,650 14,582 4,090 9,951 244 291 3 4 Feb.. 48,996 34,421 5,603 1,895 136 2,784 8,318 15,685 14,576 4,080 9,955 243 291 4 4 Mar. 49,475 34,792 5,645 1,909 136 2,806 8,383 15,915 14,682 4,102 10,023 244 291 3 19 Apr. 49,642 34,895 5,692 1,934 136 2,815 8,363 15,955 14,747 4,130 10,073 244 292 3 4 May 50,399 35,529 5,730 1,971 136 2,861 8,531 16,300 14,869 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 4,212 10,259 245 292 3 5 July. 51,120 35,981 5,827 1,992 136 2,852 8,546 16,629 15,139 4,251 10,345 243 291 3 5 Aug. 51,461 36,232 5,849 2,001 136 2,868 8,586 16,791 15,229 4,276 10,418 241 286 3 5 Sept. 51,336 36,032 5,877 2,023 136 2,858 8,500 16,639 15,303 4,280 10,493 239 283 3 5 Oct.. 51,710 36,275 5,909 2,041 136 2,865 8,536 16,789 15,435 4,302 10,608 236 280 3 5 Nov. 52,991 37,325 5,965 2,115 136 2,971 8,839 17,300 15,666 4,385 10,761 235 278 3 5 i Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break- NOTE.—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANDING AND IN CIRCULATION (In millions of dollan) Held in the Treasury Currency in circulation l Total out- Held by standing, As security For F.R. 1969 1968 Kind of currency No 1 v 9 . 6 9 30, g a o s g l i d a lv in e a r n st d Tr c e a a s s h ury B F a a . n n R d k . s A B a g a n e n n d k t s s Nov. Oct. Nov. certificates Agents 30 31 30 Gold 10,367 (10,036) 2331 (10,036) 310,035 1 Federal Reserve notes 49,281 165 2,684 46,431 45,206 43,750 6,823 137 126 6,560 6,505 6,239 485 482 482 482 5,712 104 125 5,483 5,428 5,144 323 29 1 292 292 306 303 303 303 308 Total Nov 30 1969 566,471 (10,036) 633 10,035 2,812 52,991 Oct 31 1969 565,521 (10,036) 649 10,036 3,127 51,710 Nov 30 1968 563,562 (10,026) 742 10,024 2,807 49,989 1 Outside Treasury and F.R. Banks. Includes any paper currency held s Does not include all items shown, as gold certificates are secured by outside the United States and currency and coin held by banks. Esti- gold. Duplications are shown in parentheses. mated totals for Wed. dates shown in table on p. A-5. 2 Includes $219 million gold deposited by and held for the International NOTE.—Prepared from Statement of United States Currency and Coin Monetary Fund. and other data furnished by the Treasury. For explanation of currency 3 Consists of credits payable in gold certificates, the Oold Certificate reserves and security features, see the Circulation Statement or the Aug. Fund—Board of Governors, FRS. 1961 BULLETIN, p. 936. * Redeemable from the general fund of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n 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. Currency Demand ad- Currency Demand ad- demand Total component deposit justed! Total component deposit justed i deposits' component component 1965—Dec 166.7 36.3 130.4 146.7 172.0 37.1 134.9 145.2 4.6 1966—Dec 170.4 38.3 132.1 158.5 175.8 39.1 136.7 156.9 3.4 1967—Dec . . 181.7 40.4 141.3 183.7 187.5 41.2 146.2 182.0 5.0 1968—Dec 194.8 43.4 151.4 204.9 201.0 44.3 156.7 203.1 5.0 1969—Jan 195.8 43.5 152.3 203.2 201.7 43.5 158.2 202.8 4.9 Feb 196.3 43.8 152.5 202.4 194.8 43.4 151.4 202.4 6.9 Mar 196 8 44.1 152 7 202.3 195.0 43.7 151 3 202 9 4 8 Apr 198 1 44.2 154.0 202.3 199.2 43.8 155.3 202 7 5 4 May.. 198.3 44.5 153.8 201.7 194.4 44.2 150.3 202 2 9 2 199.0 44.8 154.2 200.8 197.0 44.7 152.3 201.0 6 0 July 199.3 45.0 154.4 197.7 197.8 45.2 152.7 197.7 5.6 199.0 45.3 153.8 194.5 195.9 45.4 150.5 195.5 4 3 Sept 199.0 45.2 153.7 194.1 197.6 45.2 152.4 194.3 5.3 Oct . 199.1 45.6 153.6 193.5 199.3 45.6 153.7 193.7 4 2 Nov 199.3 45.9 153.4 193.4 201.0 46.4 154.7 192.6 5.1 Dec » 199.6 46.0 153.6 194.1 206.0 47.0 159.0 192.4 5.5 Week ending— 1969 Nov. 5 198.7 45.7 153.0 193.3 201.4 45.9 155.5 193.3 5.5 12 . . 199 7 45.8 153.9 193.1 201.1 46.4 154 7 192 8 4 9 19 200 1 45.9 154.2 193.2 201.9 46.3 155 6 192 5 4 3 26 199.2 45.9 153.2 193.5 199.8 46.3 153.5 192.4 5.4 Dec 3 199.3 45.9 153.4 193.8 202.2 46.7 155.5 192.3 6.0 10P 198.4 46.0 152.4 193.9 202.8 47.0 155.8 192.3 4.4 UP 198.7 46.1 152.6 194.2 205.7 46.8 158.8 192.4 4.9 24P 197.8 46.1 151.6 194.3 205.2 47.3 157.9 192.4 7.3 31P 202.9 45.9 157.0 193.9 211.0 46.9 164.1 192.5 5.5 1 At all commercial banks. and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside the Treasury, F.R. Banks, and vaults of all commercial NOTE.—For description of revised series and for back data, see Oct. banks. Time deposits adjusted are time deposits at all commercial 1969 Bulletin, pp. 787-803. banks other than those due to domestic commercial banks and the Averages of daily figures. Money supply consists of (1) demand U.S. Govt. Effective June 9, 1966, balances accumulated for payment of deposits at all commercial banks other than those due to domestic com- personal loans were reclassified for reserve purposes and are excluded from mercial banks and the U.S. Govt., less cash items in process of collection time deposits reported by member banks. AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S. A.l Deposits subject to reserve requirements 2 S.A. N.S.A. Period Total Non- Required borrowed Time Private U.S. Time Private U.S. 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—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 2.4 288.8 155.4 128.8 4.7 Aug.. 27.40 26.21 27.16 285.3 152.5 129.9 2.9 283.6 153.1 127.0 3.5 Sept.. 27.40 26.38 27.14 285.7 152.1 129.2 4.4 284.6 151.8 128.3 4.4 Oct... 27.35 26.21 27.13 283.5 151.5 128.9 3.1 283.8 151.1 129.3 3.5 Nov.. 27.78 26.54 27.55 285.8 151.1 129.1 5.6 284.7 150.0 130.3 4.3 Dec." 27.91 26.79 27.71 285.7 151.5 129.3 4.9 288.5 149.7 134.3 4.6 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 include total time and savings deposits and net demand deposits as denned NOTE.—Due to changes in Regulations M and p, required reserves by Regulation D. Private demand deposits include all demand deposits ex- include increases of approximately $400 million since Oct. 16, 1969. cept those due to the U.S. Govt., less cash items in process of collection Seasonally adjusted data for the period 1959 to date may be obtained from and demand balances due from domestic commercial banks. Effective June the Banking Section. Division of Research and Statistics, Board of Govern- 9, 1966, balances accumulated for repayment of personal loans were elim- ors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANKS AND THE MONETARY SYSTEM ° JANUARY 1970 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Gold T s r t c o e r u a i u u n n e r n r a t c g y d - - s y - - Total n L e o t a i n . s , 2 Total U.S. s C a T a v o r n i m e n d a g l s . s ury R F s B e e e a d c s n e u e r r k r v a i s t e l ies Others r O s i e t t i c h e u e s - r 2 c n T l a i i a a e n p t o n i t b e i t e — t d a i t s a l l - l, c d u T e r a p o r n o e t d a n s l i c t y s C c m o a a n u p i a c e n s i n - t c t t d a s . l , 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—Dec. 31., 10,367 6,795 514,427 311,334 121,273 68,285 52,937 51 81,820 531,589 484,212 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 53,300 Mar. 26.. 10,400 6,800 504,100 307,300 114,600 62,500 52,000 100 82,300 521,300 466,300 54,900 Apr. 30.. 10,400 6,700 511,400 313,200 115,000 61,900 53,100 100 83,200 528,500 472,500 56,100 May 28. 10,400 6,700 508,700 313,200 112,700 59,200 53,400 100 82,800 525,800 467,000 58,900 June 30< 10,367 6,736 522,058 326,725 111,793 57,667 54,095 31 83,540 539,162 470,457 68,705 July 30. 10,400 6,700 515,000 321,200 111,300 58,300 53,000 82,400 532,100 464,600 67,500 Aug. 27. 10,400 6,800 512,600 317,700 112,900 57,900 54,900 82,000 529,800 461,800 67,900 Sept. 24., 10,400 6,800 514,300 321,200 110,700 56,700 53,900 82,400 531,400 465,200 66,200 Oct. 29 n. 10,400 6,800 514,800 321,000 112,500 57,700 54,800 81,300 531,900 465,100 66,800 Nov. 26*, 10,400 6,800 519,300 322,800 114,900 58,200 56,700 81,600 536,500 467,800 68,700 Dec. 31s 10,400 6,800 530,300 333,600 115,000 57,800 57,200 81,700 547,500 483,000 64,500 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 5 Not seasonally adjusted Time U.S. Government Date For- Total o b r u C e a t n u n s c i r k d - y s e d j m e u D p a s a t o d e e n s - - d d it 6 s Total o b r u C e a t n u n s c i r k d - y s e d j m u e D p a s a t d o e e n - - s d d it 6 s Total b m C a e n o r k m ci s a - l * b M sa a v n u i k t n u s g a s 1 l S P t a S o e v y s m i s t n - a ' g l s e n i e g t n 8 , T h c i u r o n a e r l g s a y d h s s - - s b c a a o a A v n n m i t d n k l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 ,123 1968—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Jan. 29.... 190,100 42,800 147,300 192,500 42,200 150,400 266,000 201,200 64,900 2,200 800 7,900 500 Feb. 26.... 191,300 42,800 148,500 190,500 42,300 148,100 266,700 201,600 65,200 2,100 800 6,200 600 Mar. 26.... 193,500 43,200 150,300 190,700 42,800 147,900 267,700 201,800 65,900 2,100 700 4,600 500 Apr. 30.... 192,300 43,300 149,000 192,300 42,900 149,400 266,900 201,200 65,700 2,300 700 9,300 ,000 May 28.... 191,700 43,600 148,100 189,300 43,500 145,900 267,500 201,500 66,000 2,100 700 6,900 400 June 30*... 195,300 43,700 151,600 193,996 44,478 149,518 266,171 199,516 66,655 2,402 633 5,997 ,258 July 30.... 192,600 44,000 148,600 192,300 44,100 148,300 262,200 196,000 66,200 2,300 700 5,800 ,200 Aug. 27.... 193,700 43,900 149,800 192,100 44,200 147,900 260,800 194,500 66,300 2,100 700 5,200 ,000 Sept. 24.... 194,200 44,000 150,200 192,900 44,100 148,800 260,300 193,600 66,600 2,300 700 7,900 ,200 Oct. 29"... 194,100 44,400 149,700 195,500 44,500 151,000 259,200 192,700 66,500 2,300 700 6,400 ,100 Nov. 26"... =195,600 '44,900 150,700 198,800 46,300 152,500 258,300 191,700 66,600 2,400 700 6,800 900 Dec. 31*... 205,700 45,300 160,400 213,600 46,300 167,300 259,600 192,400 67,300 2,600 700 5,200 ,300 1 Beginning with data for June 30, 1966, about $1,1 billion in "Deposits 7 Includes relatively small amounts of demand deposits. Beginning with accumulated for payment of personal loans" were excluded from "Time June 1961, also includes certain accounts previously classified as other liadeposits" and deducted from "Loans" at all commercial banks. These bilities. changes resulted from a change in Federal Reserve regulations. These 8 Reclassification of deposits of foreign central banks in May 1961 rehypothecated deposits are shown in a table on p. A-23, duced this item by $1,900 million (SI ,500 million to time deposits and $400 2 See note 2 at bottom of p. A-22. million to demand deposits). 3 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 4 Beginning June 30, 1969, figures for commercial banks reflect (1) inclusion of consolidated reports (including figures for all bank-premises NOTE.—For back figures and descriptions of the consolidated condition subsidiaries and other significant majority-owned domestic subsidiaries) statement and the seasonally adjusted series on currency outside banks and and (2) reporting of figures for total loans and for individual categories of demand deposits adjusted, see/'Banks and the Monetary System," Section securities on a gross basis—that is, before deduction of valuation reserves. 1 of Supplement to Banking and Monetary Statistics, 1962, and BULLETINS See also note 1. for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti- 5 Series began in 1946; data are available only for last Wed. of month. mated and are rounded to the nearest $100 million. 6 Other than interbank and U.S. Govt., less cash items in process of For description of substantive changes in official call reports of condition collection. beginning June 1969, see BULLETIN for August 1969, pp. 642-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a COMMERCIAL BANKS A 19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total Securities Total Interbank^ Other Total Num- Cash lia- Bor- capita ber Class of bank issets bilities row- ac- of and date Total Loans and Total 3 Demand ings counts banks 1.2 U.S. capital De- Treas- Other ac- mand Time Time* ury counts < U.S. Govt. Other AU commercial banks: 1941—Dec. 31.... 50,746 21,714 21,808 7,22:26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31.... 124,019 26,083 90,606 7,33 34,806160,312150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31'... 116,284 38,057 69,221 9,"0"06 37,502155,377144,10312,792 240 ,343 94,36' 35,360 6510,059 14,181 1966—Dec. 31.... 322,661217,726 56,16348,77269,119403,368 352,28' 19,770 967 4,992167,751 158,806 4,859 32,054 13,767 1967—Dec. 30.... 359,903235,954 62,47361,47"77,928 451,012395,008 21,883 1,314 5,234 184,066182,511 5,777 34,384 13,722 1968—Dec. 31 401,262 265,259 64,466 71,53783,752 500,657434,023 24,747 1,211 5,010199,901203,154 8,89937,006 13,679 1969—Jan. 29 394,820 261,130 63,150 70,54071,850 480,940 407,780 19,350 1,080 7,540 178,270201,54012,830 36,870 13,673 Feb. 26 393,470 263,120 59,47070,88071,590480,700 404,52019,550 1,010 5,830 176,230201,90013,010 37,180 13,673 Mar. 26 394,900264,970 58,51071,42072,090482,870 403,670 19,910 990 4,250 176,360202,16014,360 37,360 13,677 Apr. 30 400,750 227700,470 57,98072,30081,110 498400 417;000 21,230 960 8,950184,290201,57015,780 38,000 13,669 May 28 399,920272,720 55,380 7-1,820 76,700 493,250 408!520 20,990 950 6,530178,200201,85017,490 38,090 13,668 June 30'..., 4101,,279 283,850 54,044 72,38588,209 516,752 425 36325,187 5,639193,787199,86814,740 38,823 13,673 July 30 409',,200 283,240 54,700 71 ;260 74;370 650 404 040 21,060 860 5,490180,260196,37019,450 38,480 13,682 Aug. 27 405,860280,680 54,330 701,85076;200 499;750 401 770 21,410 870 4,860179,840194,79021,270 38,660 13,683 Sept. 24 408,670284,300 53,200 71,170 75 910503,590 404 160 21,260 810 7,610180,550193,930 211610 38)860 13,681 Oct. 29* 408,470283,970 54,310 70, 190 76960504 180 406,1060 22,190 880 6,160183,810193,020 21,240 39,310 13,683 Nov. 26"" 411,580 L28_6.,230 54,850 701,50082,340512 970 411,,800 23,190 680 6,560189,400191,970"2 1,960 39145"0 13,684 Dec. 31" 418,760 2—93 ,590 54,570 701;,60089,8505271650 433,200 27,220 670 4,960207,720 1'9""2,63017,800 39,850 13,684 Members of F.R. System 1941—Dec. 31 43,521 18,021 19,539 5,961 23,123 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 6,07029,845138,304 1"29,670 13,576 6644 222,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 97,846 32,628 57,914 7,304 3"2",845132,060 122,52812,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31 263,687 182,802 41,924 38,96060,738 334,559 291,06318,788 794 4,432 138,218128,831 4,618 26,278 6,150 293,120 196,849 46,956 49,31568,946 373,584 326,033 20,811 1,169 4,631 151,980147,442 5,370 28,098 6,071 1967—Dec. 30 325,086 220,285 47,88156,920 73,756 412,541355,41423,519 1,061 4,309 163,920162,605 8,458 30,060 5,978 1968—Dec. 31 319,249216,806 46i,,464 555,97963,826 395 585 332284 18,402 927 6,556 145,546160,85312,000 29,966 5,972 1969—Jan. 29 317,925218,407 43,1387 56,13163,247 394 742 329130 18,593 860 4,907 144,065160,70512,179 30,190 5,967 Feb. 26 318,742219,595 421,,709 56,,4 3863,.74 9 396,20 9 327.685 18,950 842 3,374 143,989160,53013,636 30•,342 5,962 Mar. 26 3221,, 920 •2_"2".3,609 42 372 56,939 72,.3 98 4.0..9.,.3.4.0 339,062 20,260 796 7,981 150,719159,30614,888 30,699 5,955 Apr. 30 321,197 224,696 40,177 56,324 68,479 403,971330,433 20,054 790 5,405 145,261158,92316,467 30,752 5,944 May 28 June 30« 329,707 233,960 39,382 5566,364 78 615 424,278 344466 24,097 722 4,874 158,287 156,485 13,999 31,317 5,936 July 30 328,560 233,196 39,96255,402 66 159 410, 993 20,079 699 4,562146,373 153,280 18,145 31,090 5,925 Aug. 27 325,413 230,654 39,75455,005 843 408,644 323 063 20,433 707 4,046146,139 151,738 19,925 31,234 5,919 S O e c p t. t . 2 2 9 4 3 3 2 2 7 7 , , 6 2 1 8 1 8 2 2: ; 3 3 _3 3 _, , 2 7 6 4 0 4 3 3 8 9 , , 6 7 4 2 3 55 5 4 5 , , 3 2 0 2 3 4 68, 5 5 0 96 4 4 4 1 1 2 1 , , 1 50 3 1 0 3 3 2 26 47 7""6 8 " 0 81 2 2 0 1 , , 2 1 3 8 4 2 6 72 8 1 3 6 5, , 4 5 3 7 8 61 1 4 4 6 9 , , 4 4 6 2 8 4 1 1 5 5 0 0 , , 0 81 0 9 3 2 1 0 9 , , 3 89 2 3 2 3 3 1 1 , , 3 6 7 9 4 4 5 5 , , 9 9 0 1 1 0 Nov. 26*. .. . 330,002 2"3"5 ,05540,27654,6"71' 7"3", 107 4191,571331,,350 22,138 522 5,666 153,874 149,150 20,614 31,793 5,893 Dec. 31*.... 336,361:241,567 40,03854,756 79,304 432,272 349,915 25,896 514 4•,0 76 169,745 149,684 16,957 32,110 5,893 Reserve city member: New York City:7 1941—Dec. 31 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 866 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 6,940 17,287 1,236 2,120 37 1947_Dec. 31 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 267 19,040 1,445 30 2,259 37 1966—Dec. 31 46,536 35,941 4,920 5,674 4,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 52,141 39,059 6,027 7,055 8,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1967—Dec. 30 57,047 42,968 5,984 8,094 9,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 1968—Dec. 31 55,692 42,544 5,560 7,588 8,452 78,065 58,225 7,401 501 1,873 29,314 19,136 3,278 6,119 12 1969—Jan. 29 54,596 42,652 4,495 7,449 7,659 76,545 56,323 7,123 469 924 29,340 18,467 3,299 6,156 12 Feb. 26 53,942 41,875 4,574 7,493 8,680 76,776 55,046 7,588 442 356 28,746 17,914 4,010 6,153 12 Mar. 26 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 Apr. 30 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 May 28 June 30« 57,885 46,232 4,445 7,20826,223 89,283 62,534 1,233 405 983 34,453 15,460 3,671 6,283 12 July 30 57,645 45,922 4,893 6,83019,776 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 6,775533 2100,574 81,955 54,538 8,783 373 722 30,490 14,170 5,459 6,275 12 Sept. 24 57,278 45,807 4,534 6,93719,165 81,486 54,273 8,346 331 1,298 30,286 14,012 5,422 6,256 12 Oct. 29 56,905 45,787 4,722 6,39621,818 83,804 56,712 9,073 337 1,328 31,553 14,421 5,639 6,281 12 Nov. 26 58,509 46,249 5,487 6,77321,845 85,405 57,931 9,540 248 1,508 31,909 14,726 5,420 6,318 12 Dec. 31 60,337 48,269 5,047 7,02122,426 88,205 62,464 0,431 237 694 36,145 14,957 4,388 6,377 12 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS n JANUARY 1970 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Cla a s n s d o d f a b t a e nk Total Lo 1 a .2 ns T U u r S e r .S a e y c s . u - rit O ie t s her a C ss a e s t h s 3 c b c o T a i a u l a l p o i i n a n c t t i - - i d t a t e a s l s l * Total 3 m D In a e n t - e d rba T n i k m 3 e U. D S. ema O O n t t d h h e e r r Time1 r B in o o w g r s - - c c T a o a o p u c t i n - t a a t l s l N ba b u o n e m f r k - s Govt. Reserve city member (cont.): City of Chicago: ».• 1941_Dec. 31 2,760 954 1,430 376 1,566 4,363 4,057 ,035 127 2,419 476 288 13 1945—Dec. 31 5,931 1,333 4,213 385 1,489 7,459 7,046 ,312 1,552 3,462 719 377 12 1947—Dec. 31 s,r— 1,801 2,890 397 1,739 6,866 6,402 ,217 72 4,201 913 426 14 1966—Dec. 31 11,802 8,756 ,545 1,502 2,638 14,935 12,673 ,433 310 6,008 4,898 484 1,199 11 12,744 9,223 ,574 1,947 2,947 16,296 13,985 ,434 267 6,250 6,013 383 1,346 10 1967—Dec. 30 14,274 10,286 ,863 2,125 3,008 18,099 14,526 ,535 6,542 6,171 682 1,433 1968—Dec. 31 13,935 10,189 ,647 2,099 2,932 17,589 13,376 ,165 569 5,722 5,902 1,424 1969—Jan. 29 13,802 10,030 ,558 2,214 3,128 17,685 13,144 ,246 238 5,826 5,817 1,130 1,431 Feb. 26 14,146 10,313 ,634 2,199 2,768 17,696 12,789 ,267 92 5,775 5,638 1,418 1,435 Mar. 26 14,004 10,218 ,592 2,194 2,835 17,635 13,201 ,170 615 5,901 5,498 1,319 1,460 Apr. 30 13,646 9,996 ,473 2,177 3,067 17,559 12,662 ,190 233 5,886 5,336 1,682 1,446 May 28 June 30« 14,321 10,573 ,616 2,132 2,716 17,869 13,035 ,368 274 6,192 5,176 1,230 1,492 July 30 14,238 10,630 ,556 2,052 2,601 17,635 12,042 ,192 242 5,686 4,907 1,354 1,455 Aug. 27 13,832 10,373 ,473 1,986 2,698 17,344 11,779 ,170 149 5,630 4,811 1,717 1,483 Sept. 24 14,006 10,564 ,471 1,971 2,925 17,784 11,806 ,189 349 5,555 4,689 2,09f 1,493 Oct. 29 13,945 10,341 ,667 1,937 2,604 17,410 11,641 ,153 334 5,543 4,584 2,064 1,492 Nov. 26 14,022 10,331 ,685 2,006 2,942 17,824 11,958 ,330 250 5,866 4,491 1,985 1,500 Dec. 31 14,369 10,773 ,565 2,031 2,855 17,988 13,317 ,732 175 6,769 4,614 1,290 1,516 Other reserve city: '. > 1941—Dec. 31 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 12,557 4,806 1,967 351 1945—Dec. 31 40,108 8,514 29,552 2,04211,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2,566 359 1947—Dec. 31 36,040 13,449 20,196 2,39613,066 49,659 46,46" 5,627 22 405 28 ;990 11,423 1 2,844 353 1966—Dec. 31 95,831 69,464 13,04013,326 24,228123,863108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 105,724 73,571 14,66717,487 26,867136,626120,485 9,374 310 1,715 53,288 55,798 2,55.r10,032 163 1967—Dec. 30 119,006 83,634 15,036 20,337 28,136151,957132,30510,181 307 1,884 57,449 62,484 4,23910,684 161 1968—Dec. 31 116,456 82,141 14,167 20,148 23,463144,460 122,369 7,651 306 2,348 50,142 61,922 6,179 10,743 161 1969—Jan. 29 116,211 83,065 19,995 23,142143,969121,555 8,024 272 2,079 49,549 61,631 6,08510,773 161 Feb. 26 116,128 83,534 19,856 23,094143,928120,639 7,885 281 1,338 49,75161,384 6,76310,878 161 Mar. 26 117,795 84,932 12;857 20,006 25,890148,544 112244,498 8,062 249 3,457 51,73560,995 7,52210,982 161 Apr. 30 116,902 85,316 11,982 19,604 24,557146,119121,240 7,882 248 2,219 50,043 60,848 7,819 11,014 161 May 28 June 30' 119,789 88,582 11,63519,,572 27,265152,827125,157 9,028 159 2,171 54,079 59,721 7,311 11,166 159 July 30 118,838 87,753 11,71619,369 24,037148,510118,489 8,108 204 1,735 50,33358,109 9,173 11,194 159 Aug. 27 117,449 86,509 11,81019,130 ,644147,680116,983 8,224 204 1,633 49,74057,18210,06911,219 159 Sept. 24 117,698 87,577 11,11019,01125,301148,736117,685 8,329 217 2,963 49,66356,51310,23611,271 159 Oct. 29 117,954 87,388 11,79418,772 2—3 ,979147,722117,701 8,631 246 2,411 50,78055,633 9,50611,391 158 Nov. 26 118,287 87,908 11,58318,796 26,601150,766 111188,724 8,853 167 2,213 52,60354,88810,.51-8 J 11,381 158 Dec. 31 120,976 90,447 11,95818,57129,968156,951126,14710,687 164 1,541 58,90054,855 9,5"8"8 11,492 158 Country member: 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 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 24,23512,494 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 28,37814,560 23 2,934 6,519 1966—Dec. 31 109,518 68,641 22,419 18,,45819,004131,338117,749 2,392 69 1,474 56,672 57,144 30810,309 5,958 122,511 74,995 24,689 22,826 "2"0,334146,052131,156 2,766 96 1,564 61,16165,569 55211,005 5,886 1967—Dec. 30 134,759 83,397 24,998 26,364 22,664 161,122144,682 2,839 111 1,281 66,57873,873 80411,8 5,796 1968—Dec. 31 133,166 81,932 25,090 26,144 18,979155,471138,314 2,185 102 1,766 60,36873, 1,65811,680 5,790 1969—Jan. 29 133,316 82,660 24,183 26,47319,318156,543138,108 2,200 102 1,666 59,35074,790 1,66511,830 5,785 Feb. 26 134,526 83,873 23, 763 26,"8"9"0 19,207 157,809139,211 2,210 102 1,588 59,71775,594 1,44511,876 5,780 Mar. 26 135,514 85,222 23,307 26,985 21,063160,766141,522 2,240 111 1,829 61,57075,772 1,78012,017 5,773 Apr. 30 135,802 86,210 22,623 26,969 20,071160,098140,343 2,157 111 2,127 59,75576,193 2,04512,075 5,762 May 28 June 30« 137,711 88,573 21,686 27,452 22,410164,299143,739 2,515 86 1,448 63,,562 76,129 1,78712,376 5,756 July 30 137,839 88,891 21,797 27,15119,745161,929140,396 2,260 111 1,764 601,,622 75639 2,60712,200 5,745 Aug. 27 137,561 88,858 21,567 27 136 19,927 161,665139,763 2,256 111 1,542 60i,,279 75;575 2,68012,25' 5,739 Sept. 24 138,629 89,796 21,528 27 305 20,113 163,495 141^016 2,370 111 1,966 60,964 75,605 2,57212,354 5,730 Oct. 29 138,484 89,744 21,542 27 198 20,195 163,194 140,71' 2,325 111 1,365 61, ,365 2, 6"8"4 12,530 5,722 Nov. 26 139,184 90,567 21,52127096 21,719 165,576 142,737 2,415 86 1,695 63,496 75,045 2,691 12,594 5,714 Dec. 31* 140,679 92,078 21,468 27,133 24,055169,128147,987 3,046 86 1,666 67,93175,258 1,691 12,725 5,714 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a COMMERCIAL 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— Classification by Total Interbank3 Other Total Num- FRS membership Cash lia- Bor- capital ber and FDIC bilities row- ac- of insurance Total Loans and Total' Demand ings counts banks 1. 2 U.S. Other capital Time Time Treas- acury counts 4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31..49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31..121,809 25,765 88,912 7,131 34,292 1"5,7544 147,775 13,883 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31..114,274 37,583 67,941 8,750 36,926 152,733141,85112,615 54 1,325 92,975 34,882 61 9,734 13,398 1961—Dec. 30..213,904124,348 66,026 23,531 56,086 276,600 247,17617,737 333 5,934141,050 82,122 462 22,089 13,108 1962—Dec. 28..234,243139,449 65,891 28,903 53,702 295,093 260,60915,844 402 6,815140,169 97,380 3,584 23,712 13,119 1963—Dec. 20..252,579155,261 62,723 34,594 50,337 310,730 273,65715,077 443 6,712140,702110,723 3,571 25,277 13,284 1964—Dec. 31..275,053174,234 62,499 38,320 59,911343,876 305,11317,664 733 6,487154,043126,185 2,580 27,377 13,486 1965—Dec. 31..303,593200,109 59,120 44,364 60,327 3—7'4 ;—05"1 330,323 18,149 923 5,508159,659 •1"4,6084 4,325 29,827 13,540 1966—Dec. 31..321,473217,379 55,788 48,307 68,515 401,409 35143819,497 881 4,975166,689 159,396 4,717 31,609 13,533 1967—Dec. 30..358,536235,502 62,094 60,941 77,348 448,878 39411821,598 1,258 5,219182,984 183,060 5,531 33,916 13,510 1968—Dec. 31..399,566264,600 64,028 70,938 83,061498^071 432171924,427 1,155 51000 198,535 203,602 8,675 36,530 13,481 1969—June 30«.408,620283,199 53,723 71,697 87,311513,960 423,95724,889 800 5,624192,357 200,287 14,450 38,321 13,464 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,1 23,262 8,322 4 3,640 5,117 1 19 9 4 4 7 5 — — D D e e c c . . 3 3 1 1 . . . . 6 65 9 , , 2 3 8 1 0 2 2 1 1 3 , , 4 9 2 2 8 5 5 3 1 8 , , 2 6 5 7 0 4 4 5 , ,1 1 7 3 8 7 2 22 0 , , 0 1 2 4 4 4 9 88 0 , , 1 2 8 2 2 0 8 8 4 2 , , 9 0 3 2 9 3 8,3 9 7 , 5 2 29 35 14,013 4 5 5 3 , ,5 4 4 7 1 3 1 19 6 , , 2 2 7 2 8 4 4 7 5 8 4 5 , , 6 4 4 0 4 9 5 5 , , 0 0 1 0 7 5 795 1961—Dec. 30..116,402 67,309 36,088 13,006 31,078150,809135,51110,359 104 3,315 76,292 45,441 225 11,875 4,513 1962—Dec. 28..127,254 75,548 35,663 16,042 29,684160,657142,825 9,155 127 3,735 76,075 53,733 1,636 12,750 4,505 1963—Dec. 20..137,447 84,845 33,384 19,218 28,635170,233150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31..151,406 96,688 33,405 21,312 34,064190,289169,61510,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31..176,605118,537 32,347 25,720 36,880 2"19,744 193,86012,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31..187,251129,182 30,355 27,713 41,690 235,996 206,45612,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30..208,971139,315 34,308 35,348 46,634 263375 231,37413,877 652 3,142106,019107,684 3,478 19,730 4,758 1968—Dec. 31..236,130159,257 35,300 41,572 50,953 296 594 257,88415,117 657 3,090116, 4—22 1"2"2,597 5,923 21,524 4,716 1969—June 30 «.242,241170,834 29,481 41,927 52,271305,800 251,48914,324 437 3,534113,134 120,060 9,895 22,628 4,700 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,411 8,166 24,168 7,986 130 2,945 1,867 1947_Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1961—Dec. 30..63,196 38,924 17,971 6,302 18,501 84,303 74,119 6,835 199 2,066 43,303 21,716 213 6,763 1,600 1962—Dec. 28..68,444 43,089 17,305 8,050 17,744 88,831 76,643 6,154 231 2,351 41,924 25,983 1,914 7,104 1,544 1963—Dec. 20..72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31..77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31..74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31..77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30..85,128 58,513 12,649 13,966 22,312 11,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31..89,894 61,965 12,581 15,348 22,803116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 30«. 88,346 64,007 9,902 14,437 26,344119,358 93,858 9,773 1,341 45,152 37,307 4,104 8,689 1,236 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31..14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31..16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 149 12,366 6,558 7 1,271 6,478 1961—Dec. 30..34,320 18,123 11,972 4,225 6,508 41,504 37,560 543 553 21,456 14,979 24 3,452 6,997 1962—Dec. 28..38,557 20,811 12,932 4,814 6,276 45,619 41,142 535 729 22,170 17,664 34 3,870 7,072 1963—Dec. 20..42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31..46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31..52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31..56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30..64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31..73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 691 34,615 40,060 217 6,482 7,504 1969—June 30 «. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 749 34,070 42,921 451 7,004 7,528 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS n JANUARY 1970 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other Total Num- FRS membership Cash lia- Bor- capital ber and FDIC assets 3 bilities row- ac- of insurance Total Loans and Totals Demand ings counts banks 1.2 U.S. Other capital De- Time Time Treas- 2 ac- mand l ury counts 4 U.S. Govt. Other Noninsured nonmember: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 3:9 1,291 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 ii1 1,505 365 4 279 714 1947_Dec. 31'. 2,009 474 1,280 255 576 2,643 2,251 177 185 18 1,392 478 4 325 783 1961—Dec. 30.. 1,536 577 553 406 346 1,961 1,513 177 148 12 869 307 8 370 323 1962—Dec. 28.. 1,584 657 534 392 346 2,009 1,513 164 133 14 872 330 44 371 308 1963—Dec. 20.. 1,571 745 463 362 374 2,029 1,463 190 83 17 832 341 93 389 285 1964—Dec. 31.. 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965—Dec. 31.. 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1966—Dec. 31.. 2,400 1,570 367 463 604 3,171 2,073 274 86 17 1,062 633 142 434 233 1967—Dec. 30.. 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968—Dec. 31.. 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30«. 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Total nonmember: 1941—Dec. 31.. 7,233 3,696 2,270 ,266 3,431 10,992 9,573 4:7 5,:04 3,613 18 1,288 7,662 1945—Dec. 31.. 16,849 3,310 12,277 |,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 ,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1961—Dec. 30.. 35,856 18,700 12,525 4,631 6,854 43,465 39,073 719 178 565 22,325 15,286 33 3,822 7,320 1962—Dec. 28.. 40,141 21,469 13,466 5,206 6,622 47,628 42,654 699 176 743 23,042 17,994 77 4,240 7,380 1963—Dec. 20.. 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—Dec. 31.. 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31.. 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1966—Dec. 31.. 59,257 35,206 14,239 9,812 8,381 69,092 61,506 983 173 560 29,532 30,258 241 5,776 7,617 1967—Dec. 30.. 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31.. 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 «. 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million 1 See table "Deposits Accumulatedfor Payment of Personal Loans" and was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve its notes on p. A-23. city bank in Chicago with total deposits of $190 million was reclassified as 2 Beginning June 30, 1966, loans to farmers directly guaranteed by a country bank. CCC were reclassified as securities, and Export-Import Bank portfolio fund participations were reclassified from loans to securities. This reduced NOTE.—Data are for all commercial banks in the United States (includ- "Total loans" and increased "Other securities'* by about $1 billion. ing Alaska and Hawaii, beginning with 1959). Commercial banks represent "Total loans" include Federal funds sold, and beginning with June 1967 all commercial banks, both member and nonmember, stock savings securities purchased under resale agreements, figures for which are included banks; and nondeposit trust companies. in "Federal funds sold, etc.," on p. A-24. For the period June 1941-June 1962 member banks include mutual 3 Reciprocal balances excluded beginning with 1942. savings banks as follows: three before Jan. 1960; two through Dec. 1960, 4 Includes other assets and liabilities not shown separately. See also and one through June 1962. Those banks are not included in insured note 1. commercial banks. 5 Beginning with Dec. 31, 1947, the series was revised; for description, Beginning June 30, 1969, commercial banks and member banks exclude see note 4, p. 587, May 1964 BULLETIN. a small national bank in the Virgin Islands; also, member banks exclude, 6 Monthly series beginning July 1969 and call report series beginning and noninsured commercial banks include, a small member bank engaged June 30, 1969, reflect (1) inclusion of consolidated reports (including exclusively in trust business. figures for all bank-premises subsidiaries and other significant majority- Comparability of figures for classes of banks is affected somewhat by owned domestic subsidiaries) and (2) reporting of figuresf or total loans and changes in F.R. membership, deposit insurance status, and the reserve for individual categories of securities on a gross basis—that is, before classifications of cities and individual banks, and by mergers, etc. deduction of valuation reserves—rather than net as previously reported. Data for national banks for Dec. 31, 1965, have been adjusted to make 7 Regarding reclassification of New York City and Chicago as reserve them comparable with State bank data. cities, see Aug. 1962 BULLETIN, p. 993. For various changes between Figures are partly estimated except on call dates. reserve city and country status in 1960-63, see note 6, p. 587, May 1964 For revisions in series before June 30, 1947, see July 1947 BULLETIN, BULLETIN. pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n COMMERCIAL BANKS A 23 LOANS AND INVESTMENTS (In billion of dollan) Seasonally adjusted Not seasonally adjusted Period Securities Securttiea Total i,» Lout i.i Total",» Loami.i D U o . n S . . Other! O U o .S vt . . Other' 1939—Dec. 31 185.9 107.8 57.7 20.5 189.5 110.0 58.9 20.5 I960—Dec. 31 194.5 113.8 59.8 20.8 198.5 116.7 61.0 20.9 1961—Dec 30 209.6 120.4 65.3 23.9 214.4 123.9 66.6 23.9 1962—Dec. 31 227.9 134.0 64.6 29.2 233.6 137.9 66.4 29.3 1963—Dec. 31 246.2 149.6 61.7 35.0 252.4 153.9 63.4 35.1 1964—Dec. 31 267.2 167.7 60.7 38.7 273.9 172.1 63.0 38.8 1965—Dec. 31 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 1966—Dec. 31 310.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967—Dec. 30 346.5 225.4 59.7 61.4 354.5 230.5 62.5 61.5 1968—Nov. 27 381.6 250.4 61.0 70.2 381.1 248.8 62.8 69.5 Dec. 31 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969—Jan. 29 385.9 253.7 60.8 71.4 385.0 251.3 63.2 70.5 Feb. 26 387.9 258.4 58.1 71.5 384.1 253.7 59.5 70.9 Mar. 26' 386.6 257.3 57.4 71.9 385.4 255.5 58.5 71.4 Apr. 30' 390.7 261.0 57.7 72.1 391.5 261.2 58.0 72.3 May 28' 392.2 264.1 56.1 72.0 390.2 263.0 55.4 71.8 June 30 (old series).. 392.5 264.3 56.2 72.0 396.4 269.8 54.0 72.6 June 30 (new series)' 397.3 269.2 56.3 71.8 401.3 274.9 54.0 72.4 July 30' 397.7 269.9 56.8 71.0 397.7 271.7 54.7 71.3 Aug. 27' 397.5 270.3 56.9 70.3 394.7 269.5 54.3 70.9 Sept. 24' 396.5 271.3 54.7 70.5 396.5 272.1 53.2 71.2 Oct. 29" 396.8 273.3 53.4 70.1 396.5 272.0 54.3 70.2 Nov. 26» 399.7 275.5 53.2 71.0 399.2 273.8 54.9 70.5 Dec. 31" 398.6 276.2 51.8 70.5 407.8 282.6 54.6 70.6 1 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 balano lmulated 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. > 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 FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 30, Dec. 31, June 30, Class of Dec. 31, Dec. 30, Dec. 31, June 30, bank 1966 1967 1968 1969 bank 1966 1967 1968 1969 All commercial.... 1,223 ,283 1,216 1,150 All member—Cont. Insured 1 223 ,283 1,216 1,149 Other reserve city 370 362 332 293 National member 729 747 730 694 Country 571 617 605 588 State member.... 212 232 207 187 All nonmember 283 304 278 269 All member 941 979 937 881 Insured 282 304 278 268 NOTE.—These hypothecated deposits are excluded from "Time deposits" These deposits have not been deducted from "Time deposits" and and "Loans" at all commercial banks beginning with June 30, 1966, as "Loans" for commercial banks as shown on pp. A-21 and A-22 and on pp. shown in the tables on the following pages: A-19, A-20, and A-26—A-30, A-24 and A-25 (IPC only for time deposits). (consumer instalment loans), and in the table at the top of this page. Details may not add to totals because of roundnig. These changes resulted from a change in the Federal Reserve regulations. See June 1966 BULLETIN, p. 808. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS • JANUARY 1970 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans ' Investments For To U.S. Treasury Total Fed- purchasing financial securities 6 Class of loans1 eral Com- or carrying institutions Other, State bank and and funds mer- Agri- securities Real to and call date i m nv e e n s t t s - s e o tc l . d 2 , T 3 o . t 4 al a c i i n n a - d l c t a u u l r l 5 - - b T ro o - v i d i n d i - - - Oth s er Bills g s lo e o c c v a u t l - . O r s i e t th i c e u e s r - ! d tr u ia s- l k a e n r d s ot T h o ers Banks Others uals» Total ce a r n ti d fi- Notes Bonds rities deal- cates Total:' 1947—Dec. 31..116,284 38,057 18,1671,660 8301,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1967—Dec. 30..361,186 4,057233,180 88,443 9 270 6,215 3,780 1,90212,535 58,525 51,585 5,659 62, n.a. n.a. n.a.50,006 11,471 1968—Dec. 31..402,477 6,747259,727 98,357 9 718 6,625 4,108 2,206 13•| 729 65,137 58,337 6,724 64, n.a. n.a. n.a.58,570 12.967 1969—June 30) o|4"1'1",429 7,226277,7731104,403 10,552 5,306 4,212 2,58713,746 68,419 61,540 7,009 54, n.a. n.a. n.a.60,080 12,305 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,.505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31..121,809 25,765 9,461 1,314 3,164 3,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,8733,258 1947—Dec. 31.. 114,274 37,583 18,0—12 1,610 8—23 "1 ,19'"0 114 9,266 5,654j 914 67,941 9,676 5,918 52,347 5,129 3,621 1967—Dec. 30..358,536 3,919231 583 87,870 9,250 6,017 3,719 1,848 12,394 58,209 51,395 5,606 62,094 13,134 18,624 31,62349,737 11,204 1968—Dec. 31..399,566 6,L_ 074 97..,.7419,700 6,409 4,063 2,145 13,621 64,804 58,142 6,655 64,028 n.a. n.a. n.a.58,288 12,650 1969—June 301 o|4O"8,620 7,067276,132103,723 10,6345,1804,168 2,541 13,605 68,104 61,3376,94153,723 n.a. n.a. n.a.59,746 11,850 Member, total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,090 2,871 1945—Dec. 31.. 107,183 22,775 8,949 885555 3,133 3,378 47 3,455 1,9001,057 78,33819,260 144,27144,807 3,254 2,815 1947—Dec. 31.. 97,846 32,62816,9621,046 811 1,065 113 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1967—Dec. 30..294,098 3,438194,389 79,344 5,702 5,820 3,099 1,75411,587 45.528 40,454 5.190 46,956 9,63313,657 24,614 41,520 7,795 1968—Dec. 31..326,023 5,551215,671 87,819 5,9216,174 3,379 2,012 12,797 50,461 45,404 6,189 47,881 n.a. n.a. n.a. 48,423 8,498 1969—June 30 m •3•3"0,587 5,444229,397 92,926 6,348 4,996 3,473 2,386 12,820 52,556 47,457 6,435 39,382 n.a. n.a. n.a. 48,600 7,764 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,4531,172 26 80 287 272 17,574 3,910 3,32510,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,642 558 9,772 638 604 1967—Dec. 30.. 52,141 415 644 23,183 133,874 831 914 2,990 3,431 3,099 ,285 6,027 1,897 1,962 2,303 6,318 737 1968—Dec. 31.. 57,047 747 222 25,258 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 1969—June 30 m 57,885 992 240 26,469 13 3,410 887 1,218 3,819 4,041 3,7"0'6 1',676 4,445 n.a. n.a. n.a. 6,553 655 City of Chicago: 1941—Dec. 31.. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1967—Dec. 30.. 12,744 266 8,958 5,714 459 220 162 951 675 754 241 1,574 427 344 853 1,487 459 1968—Dec. 31.. 14,274 31 9,974 6,118 535 205 1,219 738 848 281 1,863 n.a. n.a. n.a. 1,810 315 1969—June 3010 14,321 207 10,366 6,353 366 179 1,144 790 888 338 1,616 n.a. n.a. n.a. 1,867 265 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 4271,503 1,459 855 387 29,552 8,016 5,65315,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 3,147 1,969 35120,196 2,731 1,901 15,563 ,342 1,053 1967—Dec. 30..106,086 1,219 72,7.1.3. 30,609 ,311 8811,143 5,446 16,96915,047 2,148 14,667 3,140 3,557 8,312 15,376 2,110 1968—Dec. 31..119,339 2,197 81,7"6"9 34,632 ,3621,116 1,254 588 6,00518,93916,916 2!,52015,036 n.a. n.a. 18,1112,226 1969—June 3010120,082 1,997 86,879 37,120 ,512 760 1,360 885 5,81619,41717,,354 2'.,65611,635 n.a. n.a. n.a.17,621 1,951 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,544 166;,722 1,342 1,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 224 22,857 3,063 2,108 17,687 2,0061,262 1967—Dec. 30..123,127 1,538 074 19,839 4,332 607 906 100 2,200 24,453 21,554 1,516 24,689 4,168 7,79313,147 18,338 4,488 1968—Dec. 31..135,364 2,295 4,493 720 969 119 2,147 27,164 24,154 1,694 24,998 n.a. n.a. n.a,"21 ,2269 5,095 1969—June 30101'3"8,298 2,248 913 22)984 4,779 460 963 104 2,041 28,308 25,509 1,765 21,686 n.a. n.a. n.a.22 "559 4,893 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,078 625 1967—Dec. 30.. 67,087 618 38,791 9,1 395 681 148 948 12,99711,131 469 15,516 n.a, n.a. n.a. 8,486 3,676 1968—Dec. 31.. 76,454 1,196 44,056 100,,:538 3 451 729 194 93214,676 1122,933 535 16,585 n.a. n.a. n.a.10,-1.47 4,469 1969—June 30 io 80,841 1,783 48,376 11,476 4, 310 739 201 925 15,863 14,083 574 14,662 n.a. n.a. n.a.11,4814,541 • 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 1941 and 1945 appear in the add to the total and are not entirely comparable with prior figures. Total table on pp. A-19—A-22. loans continue to be shown net. See also note 10. ' Beginning with June 30, 1966, loans 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 Prior to Dec. 1965, Federal funds sold were included with "Total loans" securities." This increased "Other securities" by about $1 billion. and "Loans to banks." • Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes) entitled Deposits Accumulated for Payment of at book value; they do not add to the total (shown at book value) and are Personal Loans, p. A-23. not entirely comparable with prior figures. See also note 10. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n t f e d s B F w e R a r . i n e R v t - h k e . s s r C c a e o n n u i c r d n y - b m a w a B d n e n o i a c s t k - t l e h - i s s c ' j m p u D a s d o a t d s e e e n - i - - d t d s > m D e I o s n t - t i e c r ? ba e F n ig k o n r- 9 G U o . v S t . . g S l a o o t n c a v a d t t e l . c C c h o e f a e e i e f t n e r r f c c i d d t s . k - i ' - s, IPC I b n a t n er k - G P S U i a n o o a n . s g v v S d t s - t a . . l g S l a o o t n c a v a d t t e l . IPC 3 r B i o n o w g r s - - co a u c n - ts Total:' 1947—Dec. 31.... 17 796 2,216 10,216 87 123 11,362 1,430 1 343 6 799 2 581 84,987 240 HI 866 34,383 65 10,059 1967—Dec. 30.... 20 275 5,93 17,490153253 19,853 2,029 5234 15564 8 677 159,825 1,316 26715,892167,6345,77734,384 1968—Dec. 31.... 21,230 7,195 18,910167 145 22,501 2,245 5010 16876 9 684 173,341 1,211 36819,110184,8928,89937,006 1969—June 3010.. 19,801 6,258 17,591 152,995 22,929 2,258 5,639 16,930 12717 164,141 882 35116,690183,97614,74038,823 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37845 9,823 673 1,762 3,677 1077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74 722 12,566 1,24823,740 5098 2 585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17796 2,145 9,736 85 751 11,236 1,379 1325 6 692 2 559 83,723 54 111 826 33,946 61 9,734 1967—Dec. 30.... 20,275 5,916 16,997151948 19,688 1,909 5219 15471 8608 158,905 1,258 26715,836166,9565,53133,916 1968—Dec. 31.... 21,230 7,165 18,343165 527 22,310 2,117 5000 16774 9442 172,319 1,155 36819,057184,1788,67536,530 1969—June 30'".. 19,801 6,229 16,778 151 340 22,755 2,134 5 624 16819 12378 163,160 800 35116,634183,30214,45038,321 Member, total: 1941—Dec. 31.... 12396 1,087 6,246 33 754 9,714 671 1709 3 066 1009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15811 1,438 7,117 64 184 12,333 1,24322 179 4 240 2450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17797 1,672 6 270 73 528 10,978 1,375 1 176 5 504 2401 72,704 50 105 693 27,542 54 8,464 1967—Dec. 30.... 20 275 4,646 10550121 530 18,951 1,861 4 631 11857 940 132,184 1,169 23512,856135,3295,37028,098 1968—Dec. 31.... 21 230 5,634 11279131 491 21,483 2,036 4 309 12851 8592 142,476 1,061 33015,668147,5458,45830,060 1969—June 301».. 19801 4,828 10370118038 22,026 2,072 4 874 12916 11513 133,857 722 30513,071 143,99013,99931,317 New York City: 1 1 9 9 4 4 1 5 — — D D e e c c . . 3 3 1 1.... 5 0 1 1 0 5 5 11 9 1 3 1 7 4 8 1 1 1 0 50 7 6 6 5 1 3 3 , , 5 5 9 3 5 5 ,1 6 0 0 5 7 6 9 8 4 6 0 6 3 23 1 7 9 1 4 3 5 3 0 8 1 15 1 , , 7 2 1 8 2 2 1 6 7""io 2 2 9 0 1,2 7 0 7 6 8 "J95 2 1 , , 1 64 2 8 0 1947—Dec. 31 4 639 151 70 16653 3,236 ,217 267 290 1105 17,646 12 12 14 1,418 30 2,259 1967—Dec. 30.... 4 786 397 476 20 004 5,900 ,337 1084 890 4748 25,644 741 70 1,152 18,8401,880 5,715 1 19 9 6 6 9 8 — — J D u e n c e . 3 3 0 1 1 . 0 .. . . . 4 5 2 0 1 6 2 4 4 4 0 3 0 4 4 2 2 0 4 2 1 0 5 8 5 0 0 8 4 9 7 , , 7 5 2 3 5 2 , , 4 5 3 0 3 9 9 8 8 8 3 8 ! 0 3 6 1 8 4 4 7 8 80 2 1 7 2 25 7 , , 3 4 3 5 8 5 6 40 2 5 2 7 5 3 3 1,6 6 2 7 3 3 1 1 8 4 , , 3 73 8 5 02 3 , ,6 7 7 3 1 3 6 6 , , 1 2 3 8 7 3 City of Chicago: 1941—Dec. 31 021 43 298 2 215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31 942 36 20C 3 153 1,292 20 1 552 237 66 3,160 719 377 1947—Dec. 31 j 070 30 175 3 737 1,196 21 72 285 63 3,853 2 9 902 426 1967—Dec. 30.... 105 94 151 4 758 1,357 77 267 283 217 5,751 21 2 602 5,409 383 1,346 1968—Dec. 31.... ! 164 98 281 5 183 1,445 89 257 245 207 6,090 21 2 624 5,545 682 1,433 1969—June 3010.. 652 78 134 4 428 1,298 69 274 321 228 5,644 25 1 391 4,7831,230 1,492 Other reserve city: 1941—Dec. 31.... 4 060 425 2 590 11 117 4,302 54 491 i 144 286 11,127 104 20 243 4,542 ••••j 1,967 1945—Dec. 31.... 6 326 494 2 174 22 372 6,307 110 8 221 i 763 611 22,281 30 38 160 9,563 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 2,844 1967—Dec. 30.... 8 618 1,452 2 805 39957 8,985 390 715 3 542 1580 48,165 310 80 5,830 50,2502,55510,033 1968—Dec. 31.... 8 847 1,800 2 986 43 674 9,725 456 884 3 835 1947 51,6e7 307 168 7,378 55,271 4,23910,684 1969—June 3010.. 7 945 1,499 2 776 39781 8,538 444 2 172 3 792 1843 48,444 205 162 6,231 53,6217,311 11;i66 Country: 1941—Dec. 31 .... 2 210 526 3 216 9 661 790 2 225 370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4 527 796 4 665 23595 1,199 8 5 465 2 004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4 993 929 3 900 27424 1,049 7 432 2 647 528 25,203 17 45 337 14,177 23 2,934 1967—Dec. 30 5,767 2,704 7 117 56,812 2,709 57 1564 7 142 1,395 52,624 96 83 5,272 60,830 55211,005 1968—Dec. 31 6,714 3,293 7 592 61,827 2,781 58 1281 7 703 612 57,263 111 86 6,043 68,348 80411,807 1969—June 30'0.. 6,991 2,851 7 036 58,325 2,465 49 1447 7 490 \\641 54,432 86 88 5,776 70,852 1,787 12,376 Nonmember :3 1947 Dec 31 544 3f947 13,595 385 55 167 1 295 180 12,284 190 6 172 6,858 12 1,596 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—Dec. 31.... 1,560 7 631 35,654 1,018 209 701 4 205 092 30,865 150 38 3,442 37,347 441 6,945 1969—June 3010 1,430 7,221 34,957 903 186 765 4 013 \\204 30,283 160 47 3,619 39,986 741 7,506 7 Beginning with 1942, excludes reciprocal bank balances. banks in U.S. possessions are included through 1968 and excluded there- 8 Through 1960 demand deposits other than interbank and U.S. after. Govt., less cash items in process of collection; beginning with 1961, For the period June 1941-—June 1962 member banks include mutual demand deposits other than domestic commercial interbank and U.S. savings banks as follows: three before Jan. 1960, two through December Govt., less cash items in process of collection. 1960, and one through June 1962. Those banks are not included in all 9 For reclassification of certain deposits in 1961, see note 6, p. 589, insured or total banks. May 1964 BULLETIN. Beginning June 30, 1969, a small noninsured member bank engaged 10 Beginning June 30,1969, reflects (1) inclusion of consolidated reports exclusively in trust business is treated as a noninsured bank and not as a (including figures for all bank-premises subsidiaries and other significant member bank. majority-owned domestic subsidiaries) and (2) reporting of figures for Comparability of figures for classes of banks is affected somewhat by total loans and for individual categories of securities on a gross basis—that changes in F.R. membership, deposit insurance status, and the reserve is, before deduction of valuation reserves. See also notes 1 and 6. classifications of cities and individual banks, and by mergers, etc. Data for national banks for Dec. 31, 1965, have been adjusted to make NOTE.—Data are for all commercial banks in the United States; member them comparable with State bank data. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS • JANUARY 1970 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In 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 nonbank Wednesday i m n a v e n e n d s t t s - To C m o e m r- - a T n o d b d r e o a k l e e r r s s ot T he o rs institutions com- To cial Agri- Total mer- U.S. others Total and culcial Treas- Other indus- tural Pers. banks ury trial U.S. U.S. and se- curi- Treas- Other Treas- Other sales curi- ties ury ury sees. finan. Other ties sees. COS., etc. Large banks- Total 19683 Dec. 4... 228,412 160,490 71,27: 2,010 1,948 4,606 101 2,648 5,327 5,053 11... 229,355 160,852 71,691 2,007 2,132 4,495 95 2,692 5,456 5,060 18... 233,432 164,645 73,025 1,990 2,245 4,746 103 2,709 6,307 5,113 25... 231,856 163,735 73,142 1,983 895 4,901 105 2,698 6,458 5,100 1969 Nov. 5. 233,155 5,981 5,432 371 87 168,413 78,117 2,052 586 3,102 104 2,575 5,827 5,484 12. 232,966 6,035 5,532 347 74 82 168,422 78,236 2,054 490 3,266 101 2,554 5,767 5,465 19. 232,526 6,178 5,759 287 66 66 168,043 78,092 2,058 537 3,363 100 2,549 5,439 5,434 26. 233,971 6,256 5,542 616 66 32 168,169 78,003 2,045 722 3,475 100 2,524 5,421 5,369 Dec. 3.. 233,640 5,784 5,249 376 114 45 168,567 78,347 2,037 598 3,311 100 2,508 5,602 5,398 10.. 234,363 6,007 5,448 260 238 61 168,792 78,525 2,041 589 3,376 100 2,490 5,622 5,427 17.. 238,220 6,321 5,881 234 100 106 172,002 80,367 2,030 491 3,410 100 2,534 6,531 S.405 24.. 237,780 6,174 5,801 161 144 68 172,449 80,514 2,042 437 3,631 100 2,505 6,517 5,436 31*. 239,696 4,681 4,059 335 153 134 175,267 81,408 2,042 1,137 4,003 105 2,580 7,001 5,605 New York City 19683 Dec. 53,589 40,363 23,575 1,179 2,585 862 1,535 1,325 53,985 40,362 23,679 1,423 2,375 888 1,612 1,311 54,887 41,292 24,216 1,416 2,531 896 1,980 1,335 53,662 40,486 24,265 541 2,681 886 2,037 1,339 1969 Nov. 5. 54,233 1,600 1,571 42,203 25,876 474 1,895 810 ,954 1,414 12. 53,721 1,123 1,098 42,272 25,961 385 2,059 808 ,939 1,405 19. 54,073 1,383 1,364 42,191 25,911 436 2 126 802 ,790 1,387 26. 55,176 1,522 1,506 42,406 25,946 594 2,189 788 ,777 1,389 Dec. 3 54,790 1,115 1,093 42,470 26,138 470 2,019 782 ,881 1,372 10 55,059 919 755 42,665 26,335 459 2,076 773 ,917 1,373 17 57,214 1,733 1,714 43,944 27,064 373 2,059 763 2,377 1,341 24 56,878 1,985 1,955 43,940 27,062 337 2,273 749 2,268 1,342 31P 57,003 691 619 45,274 27,345 995 2,605 762 2,460 1,312 Outside New York City 19683 Dec. 4 174,823 120,127 47,697 1,992 769 2,021 ,786 3,792 3,728 11 175,370 120,490 48,012 1,990 709 2,120 ,804 3,844 3,749 18 178,545 123,353 48,809 1,972 829 2,215 ,813 4,327 3,778 25 178,194 123,249 48,877 1,965 354 2,220 ,812 4,421 3,761 1969 Nov. 5. 178,922 4,381 3,861 361 87 126,210 52,241 2,040 112 ,207 ,765 3,873 4,070 12. 179,245 4,912 4,434 332 74 126,150 52,275 2,042 105 ,207 ,746 3,828 4,060 19. 178,453 4,795 4,395 281 66 125,852 52,181 2,045 101 ,237 ,747 3,649 4,047 26. 178,795 4,734 4,036 606 66 125,763 52,057 2,032 128 ,286 ,736 3,644 3,980 Dec. 3.. 178,850 4,669 4,156 376 114 126,097 52,209 2,024 128 ,292 ,726 3,721 4,026 10.. 179,304 5,088 4,693 260 93 126,127 52,190 2,028 130 ,300 ,717 3,705 4,054 17.. 181,006 4,588 4,167 234 100 128,058 53,303 2,018 118 ,351 ,771 4,154 4,064 24.. 180,902 4,189 3,846 161 144 128,509 53,452 2,030 100 1,358 ,756 4,249 4,094 31*. 182,693 3,990 3,440 335 153 129,993 54,063 2,031 142 1,398 1,818 4,541 4,293 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF URGE COMMERCIAL BANKS—Continued (In 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 Certifestate instal- eign other Total Bills icates Do- For- ment govts.2 Within 1 to After mes- eign 1 yr. 5yrs. 5 yrs. tic Large banks— Total 19683 31 726 4 802 1 537 18 310 1 088 13,310 29,579 5,145 4,967 12,649 6 818 Dec. 4 31 838 4 233 1 577 18 385 1 088 13 348 29 858 5 395 5 002 12 649 6 812 11 31^949 4,721 1^580 18^453 l|O88 13,868 29,825 5,551 5,198 12,253 6; 823 18 32,001 4,470 1,635 18,530 1,125 13,929 29,160 4,907 5,216 12,257 6,780 25 1969 33 947 418 1 375 20 024 I KK 13 697 23 428 3 303 3 152 13 334 3 639 Nov 5 33^995 450 l|295 201040 ,077 13,632 22,971 2,879 3,145 13,344 3^603 .12 34,057 395 1,416 20,035 ,059 13,509 22,641 2,511 3,606 13,328 3,196 . ..19 34,086 410 1,355 20,037 ,080 13,542 23,878 3,779 3,633 13,392 3,074 26 34,056 372 1,458 20,039 ,083 13,658 23,670 3,623 3,659 13,384 3,004 ...Dec. 3 34 050 385 1 416 20 061 089 13 621 23,974 3 923 3 675 13 372 3 004 . ...10 34 103 377 1 468 20 150 065 13,971 23,572 3,684 3 567 13 329 2 992 17 34 063 424 1 593 20 215 053 13,919 23,270 3 475 3J515 13J279 3 001 . .. 24 34,026 413 1,444 20,315 01 fi 14,172 23,990 4,183 3,481 13,304 3,022 31" New York City 19683 3,164 1,869 794 1,346 696 2,340 5,985 1.773 735 1,901 1,576 Dec. 4 3 169 1 601 840 1 348 693 2 334 6 188 962 755 1 881 1 590 11 3 182 1 121 793 1349 706 2 680 6 051 875 743 1 855 1 578 18 3,187 876 825 1,352 728 2,673 5^637 ,515 753 1,832 1,537 25 1969 3 764 187 724 1 593 722 2,768 4,592 ,295 284 2 447 566 .Nov 5 3,771 244 649 1 606 700 2,723 4,385 ,106 278 2 430 571 12 3,791 197 746 1,611 687 2,685 4,363 ,030 401 2,395 537 19 3 798 201 677 1 613 703 2 709 5 124 833 370 2 427 494 26 3,806 185 762 1 608 704 2,721 5,052 752 390 2,432 478 Dec 3 3.812 163 735 1 622 719 2,658 5,319 950 401 2 488 480 ...10 3,841 189 748 1 623 694 2,853 5,057 698 384 2 515 460 ...17 3,828 212 841 1,624 681 2,704 4,676 ,308 401 2,500 467 24 3,817 197 692 1,630 645 2,795 4,708 .320 404 2,510 474 31i" Outside New York City 19683 28,562 2,933 743 16,964 392 i 0,970 23,594 3,372 4,232 10,748 5 242 Dec. 4 28,669 2,632 737 17,037 395 11,014 23,670 3J433 4,247 10 768 5 222 11 28,767 3,600 787 17,104 382 11,188 23,774 3,676 4,455 10,398 5 245 .18 28,814 3,594 810 17,178 397 11,256 23,523 3,392 4,463 10,425 5 243 25 1969 30,183 231 651 18,431 383 10,929 18,836 2.008 2,868 10,887 3 073 Nov 5 30,224 206 646 18,434 377 10,909 18,586 ,773 2,867 10,914 3 032 ... . 12 30,266 198 670 18,424 372 10,824 18,278 ,481 3,205 10 933 2 659 19 30,288 209 678 18,424 377 10,833 18,754 ,946 3 263 10 965 2 580 26 30,250 187 696 18,431 379 10,937 18,618 ,871 3,269 10,952 2,526 Dec 3 30,238 222 681 18,439 370 10,963 18,655 ,973 3,274 10,884 2 524 10 30,262 188 720 18 527 371 11,118 18 515 .986 3,183 10 814 2 532 ...17 30,235 212 752 18,591 372 11,215 18 594 2!l67 3,114 10,779 2 534 ...24 30,209 216 752 18,685 371 11,377 19,282 2,863 3,077 10,794 2,548 31" For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS n JANUARY 1970 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (com.) 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 and 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 Certif. war- All of All rants4 other partici- other' pation' Large banks-—• Total 19683 Dec. 4 38,343 4,970 28,916 1,369 3,088 29,400 15,747 2,940 4,794 10,748 292,041 11 38,645 5,036 29,182 1,350 3,077 28,437 15,295 3 192 4 584 10,626 291,489 18 38,962 5,318 29,193 1,414 3,037 28,925 16,201 3 184 4 846 10 696 297,284 25 38,961 5,109 29,410 1,424 3,018 27,818 16,597 3 033 4 669 11 023294,996 1969 Nov. 5 35,333 3,483 28,319 1,081 2,450 38,351 17,194 2,858 5,362 576 13,260 310,756 12 35,538 3,383 28,574 1 nm 2,496 38,718 16,261 3,144 5,153 577 13,166 309,985 19 35,664 3,487 28,561 ,066 2,550 32,032 16,919 3,157 4,799 576 13,109 303,118 26 35,668 3,366 28,582 ,092 2,628 33,799 16,232 2,975 4,839 577 13,030 305,423 Dec 3 35,619 3,425 28,476 ,085 2,633 33,522 16,732 3,180 4,813 577 13,258 305,722 10 35,590 3,365 28,580 ,077 2,568 31,630 15,934 3,332 4,566 582 13,133 303,540 17 36,325 3 591 29,027 111 2 596 34 763 17 485 3 335 4 971 580 13 112312 466 24 35,887 3,465 28,698 ,092 2,632 32,289 16,765 3,042 4,627 596 13,315 308,414 3lr 35,758 3,357 28,617 DKd 2,700 36,377 16,185 3,366 5,901 591 13,597 315,713 New York City 19683 Dec 4 7 241 1 537 4,802 99 803 13 394 3 289 406 386 3 871 74 935 11 7 435 1 610 4 927 96 802 13 369 3 300 431 317 3 830 75 232 18 7,544 1 781 4,886 101 776 13 114 4 134 413 374 3 904 76 826 25 7,539 1,726 4,943 109 761 11,799 4,351 387 289 4,153 74,641 1969 Nov 5 5,838 784 4,413 110 531 20,813 4,325 381 433 271 4 770 85 226 12 5,941 726 4 551 118 546 21 351 4 594 406 437 272 4 707 85 488 19 6,136 878 4,572 105 581 15,375 4,769 382 463 273 4 699 80 034 26 6,124 847 4,571 119 587 16,470 4,049 367 380 275 4,683 81,400 Dec 3 6,153 901 4,541 119 592 16,320 4,523 416 458 274 4,754 81,535 10 6,156 874 4.590 123 569 15,925 4,415 444 337 275 4,604 81,059 17 . . .. 6,480 986 4,791 123 580 17,408 4,850 421 482 275 4,724 85,374 24 6 277 977 4,580 124 596 14,704 3,584 370 369 285 4 863 81 053 31n 6,330 900 4,676 125 629 16,749 4,143 415 456 284 5,048 84,098 Outside New York City 19683 31,102 3,433 24,114 1,270 2,285 16,006 12,458 2,534 4,408 6,877 217,106 11 31,210 3,426 24,255 1,254 2,275 15,068 11,995 2,761 4,267 6,796 216,257 18 31 418 3 537 24 307 1 313 2 261 15 811 12 067 2 771 4 472 6 792 220 458 25 31,422 3,383 24,467 1,315 2,257 16,019 12,246 2,646 4,380 6,870 220,355 1969 Nov 5 29,495 2,699 23,906 971 1,919 17,538 12,869 2,477 4,929 305 8,490 225,530 12 29,597 2,657 24,023 967 1,950 17,367 11,667 2,738 4,716 305 8,459 224,497 19 29,528 2,609 23,989 961 1,969 16,657 12,150 2,775 4,336 303 8,410 223,084 26 29,544 2,519 24,011 973 2,041 17,329 12,183 2,608 4,459 302 8,347 224,023 Dec 3 29,466 2,524 23,935 966 2,041 17,202 12,209 2,764 4,355 303 8,504 224,187 10 29,434 2 491 23,990 954 1,999 15,705 11,519 2,888 4 229 307 8 529 222,481 17 . 29,845 2,605 24,236 988 2,016 17,355 12,635 2,914 4 489 305 8,388 227,092 24 29 610 2 488 24 118 968 2 036 17,585 13,181 2 672 4 258 311 8 452 227 361 31r 29,428 2,457 23,941 959 2,071 19,628 12,042 2,951 5,445 307 8,549 231,615 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CM CO X. < m o z i- ROP c C 3o! UJ z 2 > _i 111 o 111 K UJ D i 1 o O> < < —) OC UJ I g 1 3 1 o - UJ 111- I 2R85 SPSS PBSS§g (OnOn ^ooN'-'f^ ^p^oo«o«—• -4-soooao a\^<Nmn i>i>.i>r^ oooooooo OOCT\SONO a 8*11 S«! 0 fS 0 r 0 S O t O S 0 t 0 N 0 M V4^ 3?2S S555S 5asa Iifiill 5tsss OOONOO (—r-.v£>\o vovo^c^cvo ocTocT -O^^DSJD SO^D^MS'O OO(*1—H(N(S 00sO\O^ t^(S«»O ONU-)IOO\00 oor-v>-* I o 5^55 •*^--*^f •*'*1*^-^- J3.I ?§?¥ < * *» * (S * -^ ! - ¥ ^* * *> f o ^ o C o O o ^ g " ^ o T c f^ ^ ^ c ^ o ^ o O o C t- O f s ^* ssss voooin^m ^l>o^l> vooeooon wr-ooo «s«s sssss m 00 _ — v ( o S o O i O > S25S StSS 3S3g §2SS5 ^•incsc oor-r-in NMWffi 0SO\O00O\ OOP-VO Ot-P-XTO CStStSM (S<S(S(S(S §S§;2 N — Mi H O t- ^ ^ H D — O W O ^o 0\Ni>ON o i/ t — mi ^ n -( m S in o o v£ r > - o «*- < > s v c o 4 v£> 2- RS3SS S2SS5 CJOO^T^ t£inr( ^<S 0OO 00 i % fl \ ^ D W »0 N 0f ^ O 1 •n — oo — — OOOOtS ONOOOONte»r-r-r- ooooi>r-i^ m < HAS DOOQN pp- ^-3 p-tsvofn SPSS S38S SSSSS •I3 !a nr-rOnmr-oOo vcunooy p-fn(NO> r*r-c i M -- « n v Q 6 « o n > m in f o fi o r» o s o o r r - - . o ^ o O v N ^o '* o s — o a.a sosr-r- oor-oor^C r-r-r*r-oo o"o"o"o" ~SJ?oo ^H"o*-H"o"r>T iUtB C P t- ~ i I » 0 O 0 O O f C ^ T » * \S 0 n O « r «aN * — * - O ' \ ^ O o — r ^ * " i e n v t o * - - ^ * ^ « O O /* * C i * ^ — \ m oo ^ «S -\o M (0 w-wmrt (S mm (SfStsm rlHfonw S2fS£ S8SS §2R2 o " M A om O n s t v ^ r t v i r 0 i 0 - 0 ^ 9 * t - U m ^ 3 O 0 — — N m O o O P \ - o i * - o © i v O — i r p - 0 - « O o r O o t 0 O\ — OQ mooMwr ooo\m« oso\(S«s t-(Nr-o r-otsoor- SSSS a O ¥ mO a m ¥ < f4 H "« ( S S c rf * w cs " < (s S r ( * S r (* » > e s tn < s \O* vop-m^1 HnmO O1"i-<nvi S2SS 00^^-00 -*-*Q-H<S S'Sb'SS r-oso^o 2 Q O £ O N 3£1 O * * " s \ © 4 /! O m ^o if o ^ N e - t * o -Q m o © • in n V r * D - ( o t S - o -- O r H -' © n * I ^5?5 5???^ (S ^*%r in ^mfS^- ^* fS SO »* •* Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS a JANUARY 1970 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 deposits' 1 ties of pur- F.R. ties, ac- loans invest- mand banks chased Banks Others etc. s Loans ities counts (gross) ments deposits to etc.' ad- (gross) ad- Issued Issued their justed' ad- justed 1 o Total to to foreign justed 9 IPC's others branches Large banks— Total 19683 TVr 4 58 11 ">01 17 912 3,248 71 872 155 688 771 610 80,311 74 V>& 15 816 8 490 6,883 11.. 214 11 155 18 409 3 245 71 859 156 619 775 177 81,871 74 ">A0 15 765 f 495 7,356 18.. 888 11 504 18 531 3,252 i\ ,798 159 924 778 711 82,002 71 511 15 074 i 419 7,232 25.. 244 11 1R4 17 669 3 237 •>1838 159 265 777 186 83,305 71 468 15 111 1 157 6,948 1969 Nov 5.. 17 159 1 016 1 117 26,337 3,602 113 71,270 168 544 7">7 105 77,953 11 465 5 nr> 5 641 14,405 12.. 17 191 569 ? 49R 26,395 3,601 IP 269 168 475 776 984 78,396 11 449 5 765 5 684 14,357 19.. 16 576 535 ? 575 27,294 3 600 111 ^1,175 168 067 776 T7' 79,835 11 40? 5 866 5 516 15,040 26.. 15 <>ni 937 ? 560 27,121 3 594 111 71 17ft 168,473 778 019 79,348 11 119 5 791 5 578 14,886 T>c 3.. 16 779 626 7 8^0 27,093 3,602 105 71,111 168,730 778 019 79,349 11 159 5 690 5 4A9 14,796 10.. 16 946 520 7 714 26,772 3,603 108 71,176 168,966 778 510 82,449 11 191 5 617 5 554 14,564 17.. 18.6P 557 7 641 26,893 3,595 104 71,70T 172,065 711 96? 81,995 11 148 5 570 5 578 14,583 24.. 18 765 576 7 680 26,953 3,579 91 71,718 172,398 711 555 82,875 11 056 5 518 5 518 14,400 31K. n 5">0 110 7 799 25,544 3,741 94 71,1V> 175,476 715 774 89,949 10 850 5 405 5 445 13,001 JVewYork City 19683 TVr 4.. 1 056 9,296 938 5,936 38,494 51 770 17,413 7 478 5 151 7 175 5,075 11. 1 777 9,828 938 5 940 38,761 57 184 16,995 7 441 5 118 7;i?5 5,492 18 225 4 P0 9,848 941 5 891 40 171 51 766 17,534 6 889 4 59? 7,797 5,435 25. 3 845 9,329 939 5,884 39,610 52786 18,025 6 839 4 593 2,246 5,128 1969 Nov. 5. 4 579 230 198 13,839 ,052 1 A089 42 045 57475 15,651 7 576 674 1,90? 9,620 12.. 4 859 12 186 13,786 ,052 1 A097 42 053 57 179 15,390 7 611 657 1,976 9,677 19 4 587 187 14,378 ,052 1 6 071 42 013 57 5P 17,104 698 789 1 909 10,121 26.. 4 "PI 57 184 14,264 ,052 1 A,061 42,221 51 469 16,175 7 710 767 1 961 9,991 Dec. 3. 4 699 85 181 14,405 ,052 1 6 098 42 307 51 5P 15,970 7 661 717 1 9?4 10,103 10 777 158 14,022 051 3 A116 42 666 54 141 17,380 7 775 71? ,993 9,810 17. 5,895 14 110 14,527 ,050 3 A,036 43,774 55 111 17,330 7 741 777 7 016 10,166 24 5,477 50 119 14,233 ,040 1 A,0->R 43,758 54 711 17,817 7 745 7?7 7 071 9,706 31". 1,506 6 176 13,544 ,039 ? A119 45,149 56 187 20,197 7 70? 694 7 008 8,724 Outside New York City 19683 Dec 4 58 8 147 8,616 2 310 15 936 117 194 171 890 62,898 16 848 10 681 6,165 1.808 11 214 7 578 8,581 2,307 15 919 117 858 172 718 64,876 16 817 10 647 A,170 1,864 18.. 663 7 184 8,683 2,311 15,907 119 753 174 945 64^468 16 6?4 10 48? A14"> 1,797 25. 744 7 119 8,340 2,298 15 954 119 655 174 A00 65,280 16 679 10 518 6 111 1,820 1969 Nov. 5.. 17,610 786 1 919 12,498 !,550 110 17 181 126 499 174 810 62,302 8 889 5 148 1 741 4,785 12 1? 111 557 7 117 12,609 2,549 109 17 177 126 422 174 A05 63 006 8 816 S 108 1 708 4,680 19 11 944 535 •> 191 12,916 2,548 108 17 104 126 054 173 860 62,731 8 704 5 077 1,6">7 4,919 26 11,580 880 2 176 12,857 2,542 108 17,117 126,252 174550 63,173 8 589 5 024 3,565 4,895 TVc 3.. 11,510 541 7 419 12,688 2,550 107 17,">11 126 423 174 507 63,379 8498 4 951 1 545 4,693 10.. 11 719 520 7 176 12,750 2,552 105 17 •>in 126 300 174 189 65,069 8 466 4 905 1 5A1 4^54 17.. Pi 717 543 7 111 12,366 2,545 101 17,166 128 291 176 651 64,665 8 405 4 841 1 56? 4,417 24.. P 791 526 7 141 12,720 2,539 90 17,210 128 640 176 814 65,058 8 111 4 796 1 515 4,694 31". 10,014 104 2 473 12,000 2,702 92 17,233 130,327 179 037 69,752 8 148 4 711 3,437 4,277 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Figures not comparable with 1969 data. For description of revision mercial banks. in series beginning July 2 (with overlap for June 25), see BULLETIN for Aug. 1 o All demand deposits except U.S. Govt. and domestic commercial 1969, pp. 642-46. banks, less cash items in process of collection. 4 Includes short-term notes and bills. ii Certificates of deposit issued in denominations of $100,000 or more. 5 Federal agencies only. 6 Includes corporate stock. NOTE.—Figures for Nov. and Dec. 1969 are preliminary and may be 7 Includes securities sold under agreements to repurchase. revised in a forthcoming BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding •let change during Industry 1969 1969 1969 1968 Dec. Dec. Dec. Dec. Dec. 2nd 1st 31 24 17 10 3 Dec. Nov. Oct. IV III II half half Durable goods manufacturing: 2,085 2,043 2,044 2,006 1,965 137 -36 -25 76 53 -36 129 51 5,926 5,970 5,942 5,694 5,510 412 138 -221 329 280 221 609 675 2,632 2,531 2,474 2,371 2,342 284 84 32 400 139 -50 539 107 Other fabricated metal products... 2,003 1,993 2,034 1,983 1,982 37 -55 -97 -115 -59 176 -174 318 2,515 2,509 2,538 2,438 2,386 135 —44 -81 -13 92 176 79 214 Nondurable goods manufacturing: 3 253 3 242 3 126 2 928 2,906 333 272 64 666 43 211 709 -396 2,337 2,391 2,429 2,437 2,470 -159 -114 -198 -471 98 253 -373 494 1 718 1 695 1 673 1,679 1,662 86 1 194 -107 -243 142 -350 457 2 845 2 851 2,811 2,720 2,676 135 41 24 197 -94 256 103 249 2,084 2,067 2,038 2,003 2,003 90 -19 -35 36 163 79 199 83 Mining, including crude petroleum and natural gas 4,837 4,810 4,820 4,768 4,721 79 -56 -38 -15 -54 -41 -69 195 Trade: Commodity dealers 1 190 1 131 1 142 1,131 1,122 109 132 125 366 -132 -356 234 -372 Other wholesale 3 569 3 551 3,546 3,511 3,513 138 198 12 48 -37 33 11 200 Retail 4 180 4 333 4,445 4,344 4,417 — 13 — 185 327 129 -255 425 -126 246 5,736 5,590 5,568 5,454 5,477 298 -55 3 246 11 106 257 250 1,539 1,483 1,463 1,319 1,349 258 32 -43 247 94 138 341 34 3,565 3,351 3,322 3,184 3,214 420 -57 89 452 295 78 747 -118 3,142 3,128 3,138 3,097 3,131 21 -59 -106 -144 -26 156 -170 361 7 020 6,828 6,815 6,759 6,783 247 171 -10 408 -145 185 263 730 4,945 4,784 4,821 4,685 4,759 382 -138 121 365 142 534 507 966 708 664 576 507 457 280 -19 33 294 -111 -43 183 -198 Foreign commercial and industrial 2,238 2,292 2,312 2,281 2,262 -15 -33 24 -24 -168 -76 -192 -119 Total classified loans 70,067 69,237 69,077 67,299 67,107 3,418 199 -218 3,370 86 2,567 3,456 4,427 Total commercial and industrial loans. 81,408 80,514 80,367 78,525 78,347 3,532 354 -419 3,450 -333 2,768 3,117 4,690 See NOTE to table below. "TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1969 1969 |1968 1969 Industry D 3 e 1 c. N 2 o 6 v. O 2 c 9 t. Sept. AT J 3 u 0 ly June M 2 a 8 y A%- III IV h 2n al d f Durable goods manufacturing: Primary metals 1,476 1,402 1,407 1,419 1,375 1,363 1,352 1,390 1,358 67 -36 50 57 124 T M r a a c n h s i p n o e r r t y ation equipment 2 1 ,5 7 0 4 1 9 2 1 , ,3 5 8 6 9 6 2 1 , ,3 5 0 0 5 7 2 1, , 2 5 4 5 5 6 2 1 , ,1 5 9 0 5 9 2 1 , ,1 5 3 5 0 5 2 1 , ,0 4 9 7 7 4 2 1, , 0 4 8 3 6 2 2 1 , , 4 11 8 0 8 82 -6 4 6 5 1 1 6 2 8 8 2 1 5 9 6 3 2 4 7 0 5 4 Other fabricated metal 148 products 761 796 770 769 780 799 798 789 776 -29 84 -24 -8 -37 Other durable goods 1,169 1,097 1,087 1,110 1,062 1,052 1,068 1,039 1,014 42 20 16 59 101 Nondurable goods manufacturing: Food^ liquor, and tobacco, 953 908 873 853 838 859 813 767 151 -67 94 Textiles, apparel, and leather 713 707 686 689 664 651 646 619 618 43 24 n 24 67 Petroleum refining 1,356 1,310 1,282 1,477 1,465 1,455 1,667 1,632 1,633 -190 139 316 -121 -311 Chemicals and rubber 1 829 1,674 1,701 1,717 1,741 1,774 1,695 1,672 1,587 22 95 -88 112 134 Other nondurable goods.. 1,151 1,123 1,071 1,066 1,058 1,055 1,051 1,036 1,012 15 26 -36 85 100 Mining, including crude petroleum and natural gas, 4,090 4,044 4,079 4,119 4,030 4,089 4,203 4,230 4,302 -84 -67 237 -29 -113 Trade: Commodity dealers., 79 81 81 80 111 114 114 111 112 -34 4 -8 -1 -35 Other wholesale 706 668 691 666 659 675 671 659 653 -5 g 31 40 35 Retail 1,229 1,215 1,182 1.158 1,144 1,160 1,155 1,154 1,163 3 1 19 71 74 Transportation 4,414 4,146 4,115 4 107 4,061 4,042 4,081 4,014 3,988 26 49 126 307 333 Communication 498 462 486 446 446 436 440 409 440 6 3 -4 52 58 Other public utilities 1,337 1,219 1,244 1,295 1,241 1,216 1,149 1,135 1,109 146 -81 6 42 188 Construction 904 903 899 891 890 875 891 886 847 17 66 13 13 Services 2,991 2,945 2,854 2,860 2,861 2,861 2,869 2,885 2,891 "' -9 293 131 122 All other domestic loans 1,241 1,204 1,222 1,131 1,053 1,050 1,020 1,023 1,025 111 60 110 221 Foreign commercial and industrial loans 1,642 1,690 1,692 1,717 1,739 1,791 1,836 1,869 1,853 -119 -95 -75 -194 Total loans 32,789 31,549 31,234 31,398 30,937 30,981 31,136 30,883 30,746 262 418 1,1871 1,391 1,653 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 32 BANK RATES ° JANUARY 1970 PRIME RATE, 1929-69 (Per cent per annum) In effect during— Rate Effective date Rate Effectivedate Rate Effective date Rate m 1929 5*4-6 1947 Dec.i 1% 1956—Apr. 13 1966—Mar. 10 5*4 Aug. 21 4 June 29 1930 3*4-6 1948 Aug.' 2 Aug. 16 1 1 9 9 3 3 1 2 2 3 % *4 - - 5 4 1950—Sept. 22 2*4 1957 Aug 6 4*4 1967—Jan. 26-27... it* 1933 1*4-4 Mar. 27 19 1 3 9 4 4 — 7 (Nov.) 1*4 1951—J O D a c e n t c . . 1 1 7 8 9 2 2 % % 1958—J A S a e p n p r . t . . 2 2 1 2 1 1 3 4 *4 1968—A N Se p o p r v t . . . 2 2 1 0 5 9 66 6 * - 4 6*4 1953 ADr 27 3*} 1959—M Se a p y t. 18 4*4 D N e o c v . . 13 6 6 * * 4 4 1 Dec. 18 6% 1954—Mar 17 3 1960—Aug. 23 4*4 1969—Jan. k 1955 Aug 4 3*4 Mar. 17 Oct 14 3*4 1965—Dec. 6 5 June 9 1 Date of change not available. SHORT-TERM BUSINESS LOANS Size of loan (in thousands of dollars) All >izes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 1969 Percentage distribution of dollar amoun Less than 8.50 4.4 5.7 21.5 24.5 9.6 11.6 6.0 7.6 3.0 4.6 2.8 3.3 8 50 41.1 38.5 4.5 5.0 9.1 8.3 21.0 18.3 37.5 34.1 57.6 55.4 8.51-8.99 23.5 23.7 10.4 8.7 13.2 13.0 25.7 25.9 27.1 28.2 23.8 24.2 900 9.3 9.2 10.2 10.4 14.6 14.1 12.4 12.5 9.3 8.9 6.9 6.7 9 01-9 49 7.4 8.5 11.7 12.9 16.3 18.7 12.9 13.7 9.0 9.3 2.8 3.7 9 50.. . . .. 5 3 5.3 13.2 12.1 12.3 11.1 7.6 7.2 5.8 5 1 2.7 3.2 9 51 9 99 3 4 3 8 14.5 14.3 10.0 10.3 5.1 5.9 3.2 3.2 1.3 1.5 Over 10.00 5.7 5.4 13.8 12.2 14.9 12.7 9.5 8.6 4.9 6.4 2.3 2.0 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: 3.942.2 4,155.0 43.7 48.9 403.4 450.4 844.3 926.4 600.8 579.7 2,050.1 2,149.5 Number (thousands) 30.4 33.8 11.4 12.7 12.8 14.4 4.3 4.7 1.0 0.9 0.9 1.0 Center Weighted average rates (per cent per annum) 8.83 8.82 9.05 8.99 9.20 9.14 9.00 8.96 8.84 8.84 8.66 8.67 New York City 8.66 8.65 9.22 9.12 9.13 9.12 8.83 8.83 8.74 8.65 8.58 8.59 9.21 9.14 ^.16 9.09 9.57 9.49 9.36 9.32 9.18 9.15 8.85 8.77 8 North Central 8.83 8.85 8.77 8.80 9.16 9.14 9.11 9.06 8.81 8.93 8.70 8.72 7 Southeast 8.58 8.46 8.69 8.59 8.73 8.57 8.55 8.39 8.60 8.48 8.45 8.45 8 Southwest 8.79 8.85 9.20 9.09 9.02 8.96 8.81 8.83 8.76 8.75 8.66 8.84 4 West Coast 8.81 8.75 9.45 9.47 9.22 9.23 8.95 8.94 8.76 8.82 8.67 8.56 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a INTEREST RATES A 33 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 Finance Period P co ri m m l e . pa C p O e . r ba P n ri k m er e s' Federal 3-month bills 5 6-month bills 5 9- to 12-month issues paper, placed accept- funds 3- to 5m 4 o - n to th e s - > d 3 i - r e to ct l 6 y - , 90 a n d c a e y s s , • rate 3 Rate on Market Rate on Market Bills (mar- Other « i . s ? su « e « s 7 months 2 new issue yield new issue yield ket yield): 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 3.28 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 5.11 4.881 4.85 5.082 5.06 5.07 5.17 5.16 1967 5.10 4.89 4.75 4.22 4.321 4.30 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 1969 7.83 7.16 7.61 8.22 6.677 6.64 6.853 6.84 6.77 7.06 6.85 1968—Dec 6.17 5.86 6.20 6.02 5.916 5.94 6.014 6.05 5.98 6.00 5.99 1969—Jan 6.53 6.14 6.46 6.30 6.177 6.13 6.312 6.28 6.05 6.26 6.04 Feb 6.62 6.33 6.47 6.64 6.156 6.12 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 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 "7.89 "8.39 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 Sept .... 8.48 7.61 8.14 9.15 7.129 7.08 7.316 7.31 7.35 7.76 7.58 Oct '8.56 7.86 8.17 ••9.00 7.040 6.99 7.297 7.29 7.22 7.63 7.47 Nov 8.46 7.92 8.18 8.85 7.193 7.24 7.565 7.62 7.38 7.94 7.57 Dec 8.84 7.93 8.58 8.97 7.720 7.81 7.788 7.89 7.64 8.34 7.98 Week ending— 1969—Sept. 6 8.25 7.56 8.09 9.57 7.014 7.02 7.166 7.24 7.34 7.67 7.30 8.40 7.60 8.13 8.57 7.184 7.10 7.408 7.30 7 34 7.74 7.44 20 ... 8.50 7.63 8.13 9 07 7.156 7.12 7.329 7.34 7.33 7.76 7.63 27 8.60 7.63 8.15 9.61 7.161 7.10 7.362 7.31 7.37 7.80 7.74 Oct. 4 8.83 7.73 8.25 9.11 7.106 7.02 7.340 7.31 7.41 7.93 7.93 11 "8.73 7.88 8.25 9.43 7.046 6.98 7.289 7.33 7.34 7.76 7.74 18 8 63 7 91 8.25 9 68 7.042 7.01 7.327 7.30 7 25 7 62 7 36 25 8.50 C7.94 8.15 8.68 6.975 6.94 7.265 7.24 7.04 7.42 7.12 Nov. 1 8.23 7.78 8.00 8.39 7.030 7.00 7.263 7.26 7.12 7.55 7.35 8 8.19 7.88 8.00 9.07 6.998 7.07 7.281 7.38 7.06 7.70 7.45 15 8.41 7.94 8.00 9.32 7.157 7.14 7.435 7.45 7.15 7.87 7.54 22 8.58 C7.94 8.20 8.79 7.141 7.24 7.518 7.74 7.50 8.05 7.68 29 8.63 7.94 8.50 8.32 7.476 7.49 8.027 7.90 7.77 8.09 7.60 Dec 6 8.63 7.98 8.38 8.91 7.453 7.60 7.613 7.83 7.55 8.11 7.64 13 8.75 7.88 8.53 8.75 7.702 7.81 7.803 7.92 7.61 8.32 7.95 20 8.93 7.89 8.63 9.14 7.920 7.88 7.922 7.89 7.61 8.37 8.06 27 9.00 7.90 8.72 9.18 7.804 7.82 7.815 7.82 7.67 8.44 8.10 1970 jan. 3 9.00 8.03 8.75 8.71 8.096 8.02 8.101 8.03 7.75 8.56 8.26 1 Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. 5 Bills quoted on bank discount rate basis. maturities in the 90-179 day range. 6 Certificates and selected note and bond issues. 3 Seven-day average for week ending Wednesday. 7 Selected note and bond issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 INTEREST RATES a JANUARY 1970 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 l t o a n t g es - Total i term) Total i Aaa Baa Aaa Baa In tr d i u al s- R ro a a il d - P u u ti b li l t i y c fe P r r r e e - d C m o o m n - C m o o m n - 6 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 6.08 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 5.64 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 5.57 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 5.8 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 1969 6.10 5.73 5.45 6.07 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 1968—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 '5.66 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 6 03 July 6 07 5 80 5.61 6.08 7.39 7.08 7.84 7.29 7.50 7.49 6.42 3.34 6 02 5 98 5 74 6.28 7 37 6.97 7.86 7.29 7.57 7.40 6.44 3.37 Sept 6 32 6.21 5.83 6.58 7.53 7.14 8.05 7.42 7.68 7.62 6.61 3.33 5.66 Oct 6 27 6.12 5.80 6.45 7.72 7.33 8.22 7.59 7.76 7.91 6.79 3.33 Nov 6 51 6.25 5.88 6.60 7.76 7.35 8.25 7.61 7.83 7.94 6.84 3.31 Dec 6 81 6.84 6.50 7.23 8.13 7.72 8.65 7.95 8.16 8.39 7.19 3.52 Week ending— 1969 Sept 6 6.18 6.09 5.80 6.47 7.43 7.05 7.95 7.34 7.60 7.49 6.46 3.33 13.. 6.23 6.27 5.85 6.65 7.50 7.12 8.03 7.39 7.68 7.56 6.58 3.33 20.. 6.31 6.27 5.85 6.65 7.55 7.16 8.07 7.43 7.68 7.67 6.64 3.35 27... 6.41 6.19 5.82 6.55 7.58 7.19 8.08 7.45 7.70 7.69 6.74 3.31 Oct 4 6 56 6.22 5.83 6.58 7.66 7.28 8.18 7.53 7.73 7.82 6.87 3.42 11 6 34 6.15 5.80 6.40 7.74 7.37 8.26 7.62 7.70 7.98 6.78 3.41 18 6.16 6.05 5.75 6.38 7.77 7.39 8.26 7.65 7.76 7.99 6.80 3.31 25 6 07 6 13 5 80 6 48 7 71 7 31 8 21 7 59 7 79 7 89 6 75 3 24 Nov 1 6.32 6.16 5.84 6.52 7.68 7.25 8.17 7.54 7.80 7.82 6.75 3.27 g 6 34 6 06 5 75 6.42 7 68 7.26 8 19 7 55 7 79 7 84 6 78 3 25 15 6.46 6.14 5.78 6.50 7.70 7.29 8.19 7.56 7.76 7.89 6.75 3.24 22 6 61 6 33 5 95 6.67 7 78 7.38 8 28 7 62 7 84 7 98 6 85 3 33 29 6.60 6.47 6.05 6.83 7.89 7.50 8.38 7.75 7.96 8.09 6.99 3.43 Dec 6 . 6 65 6 68 6.34 7.05 7.97 7.60 8.45 7.79 8.01 8.22 7.08 3.50 13 6 73 6 82 6.48 7.20 8.05 7.64 8.57 7.83 8.07 8.35 7.21 3.54 20 6 84 6 92 6.57 7.32 8.15 7.73 8.68 7.95 8.19 8.44 7.33 3.59 27 6 92 6 92 6.57 7.32 8.27 7.84 8.80 8.13 8.28 8.50 7.16 3.51 1970—Jan. 3 7.00 6.88 6.52 7.28 8.33 7.90 8.89 8.19 8.34 8.56 7.16 3.48 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 2 ra 3 i( lr 1 o 9 a 6 d 7 a , v A er a a a g -r e a o te r d t h r e a i A lr a o a ad c o b m o p n o d s s i te a r s e e r n ie o s . longer a component of the ser S ie to s c a k r s: e f S r t o a m nd M ar o d o d a y n * d s P I o n o v r e ' s s t o c r o s r p S o e r r a v t ic e e s e s r e i r e i s e . s . 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 eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios NOTE.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Monthly and weekly yields are computed as follows: U.S. Govl. bonds: adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 Exchange ( G t l U e o r o n . m v S g t . ) - . S l a o t n c a a d 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 u u ti b li l t i y c Total In tr d i u al s- T p t o r i a r o t n n a s - - Utility Fi- in to d t e a x l • NYSE AMEX 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 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1968 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 1968—Dec 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 1969—Jan 66.55 86.4 71.8 101.46 110.15 54.78 69.24 57.33 59.61 56.18 4S.98 75.26 31.67 11,685 5,801 Feb 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 Mar 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 Apr. 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 May 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 June 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 July 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 Aug 62.64 73.6 67.2 94.51 103.97 42.03 57.84 52.37 55.29 42.72 40.20 68.16 26.57 10,439 3,718 Sept 63.05 74.9 66.5 95.52 105.07 41.75 58.80 53.27 56.22 43.12 40.55 71.71 27.48 13,486 5,611 Oct 61.08 73.4 65.7 96.21 105.86 40.63 59.46 53.85 56.84 42.59 41.36 71.62 27.97 11,247 8,075 Nov 58.71 68.7 62.9 91.11 100.48 36.69 55.28 50.86 53.93 37.77 38.69 66.95 26.32 12,384 4,928 Dec Week ending— Dec. 6.... 59.93 69.9 64.2 92.24 101.70 37.81 55.95 51.53 54.55 39.16 39.32 68.15 26.82 12,003 4,116 13.... 59.35 68.7 63.5 90.60 99.92 36.51 54.96 50.55 53.55 37.57 38.57 66.88 26.26 11,547 4,272 20.... 58.46 68.0 62.3 90.29 99.62 35.72 54.68 50.38 53.46 36.90 38.25 66.20 26.15 10,849 4,879 27.... 57.92 78.5 62.5 90.97 100.33 36.41 55.27 50.74 53.84 37.37 38.60 66.33 26.11 10,425 4,347 1970—Jan. 3.... 57.33 68.6 62.2 91.98 101.40 37.37 55.05 51.45 54.62 38.11 38.84 67.47 26.32 13,936 7,111 i Begins June 30,1965, at 10.90. On that day the average price of a share cent, 20-year bond. Municipal and corporate bonds, derived from average of stock listed on the American Stock Exchange was $10.90. yields as computed by Standard and Poor's Corp., on basis of a 4 per cent, 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 5^-hour trading day; beginning Jan. 1969 a computed as follows: U.S. Goit. bonds, derived from average market 4- hour trading day; beginning July 7, 1969, a 4J^-hour trading day. yields in table at bottom of preceding page on basis of an assumed 3 per FERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t n c t e r t ) - c F c h ( e e a p n e r e s t g r & ) e ! s M (y a e tu a r n i ) ty L c p r ( e o a p r n a t i e c i t n r o e ) / (t d h c p o P o h l r u u l a i a s c r s r . e - e s o ) f (t a d h m L o o l o u o la a u s r n . n s o t ) f C c t ( r r e p a o a n e t n c t e r t ) - c F c h ( e e a p n e r e s t g r ) * e i , s M (y a e t a u r r s it ) y L p r c ( o a e p r n a t i e c i n t r o e ) / (t d h c o p o P h l r u u l a i a s r c s r . - e e s o ) f (t a d h L m o o l o u l o a a s u r . n n s o ) t f 1963 5.84 .64 24.0 73.3 22.5 16.3 5.98 .60 19.2 70.8 17.8 12.6 1964 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1968—Nov 7.07 .84 25.4 74.1 30.7 22.5 7.07 .82 22.7 72.9 26.2 18.9 Dec 7.09 .89 25.9 74.0 33.7 24.7 7.09 .85 23.3 73.2 28.1 20.4 1969—Jan 7.16 .84 25.6 73.6 33.2 24.1 7.18 .86 22.8 72.6 27.9 20.0 Feb 7.26 .81 25.6 73.3 32.4 23.5 7.28 .86 22.9 72.8 27.2 19.6 Mar 7.32 .93 25.8 73.8 33.0 24.0 7.35 .84 23.0 72.7 28.2 20.2 Apr 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 7.76 .92 25.5 72.0 34.6 24.5 7.79 .91 22.8 71.7 28.5 20.1 Aug 7.86 .86 25.2 72.3 34.0 24.3 7.90 .93 22.6 71.2 28.4 19.8 Sept 7.89 .92 25.3 72.4 34.3 24.7 7.92 .92 22.2 70.7 27.5 19.2 Oct 7.98 .89 25.3 72.9 34.6 25.0 7.98 .91 22.2 70.2 28.1 19.5 Nov." 7.98 .96 25.3 72.9 34.3 24.6 7.98 .89 22.5 70.4 28.6 19.9 1 Feet 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT a JANUARY 1970 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- addebit credit tended strict- Restricted justed Brokers Banks Total bal- bal- by End of ed debt 1 l ances ances brokers period (millions Under 30-39 40-49 50-59 60 per of 1968 Nov 6,200 2,630 8,830 9,029 3,419 5,610 20 20-29 per per per cent dol- Dec . . 6,200 2,710 8,900 9,790 3,717 6,073 cent cent cent or more lars) 1969—Jan 5 930 2,750 8 680 9,042 3 597 5 445 F M A e p a b r r 5 5 5 , , , 7 5 5 5 7 9 0 0 0 2 2 2 , , , 8 7 7 1 8 6 0 0 0 8 8 8 , , , 5 3 3 6 7 3 0 0 0 9 8 8 , , , 3 1 0 1 4 4 8 8 4 3 3 3 , , , 0 6 2 7 4 9 7 7 4 5 5 4 , , 9 0 5 6 2 0 7 4 1 1968— D N e ov c. .. 1 3 0 . . 8 6 3 3 6 8. . 9 4 2 2 1 0 . . 4 2 7 7. . 5 6 3 3 . . 8 6 2 26 0 . . 3 4 1 1 2 1 , , 0 4 6 6 0 0 May 5 5, , 3 6 4 7 0 0 2 2 , , 7 7 4 7 0 0 8 8, , 0 4 8 4 0 0 8 8 , , 2 4 1 7 4 4 3 3 , , 0 0 8 8 4 4 5 5, , 1 3 2 9 5 0 1969—Jan... 5.9 40.6 20.9 8.1 4.4 20.1 11,180 July . ... 5,170 2,700 7,870 7,515 2,783 4,732 Feb... 2.7 38.8 22.9 9.4 5.1 21.1 10,840 5 000 2,670 7 670 7 019 2 577 4 442 Mar.. 5.5 37.3 21.1 9.3 4.9 21.9 10,520 S O e c p t t ' 4 5 5 , , , 0 0 9 4 8 40 0 0 2 2 2 , , , 6 5 5 2 7 2 0 0 0 7 7 7 , , , 6 5 6 1 6 0 0 0 0 7 7 7 , , , 1 2 0 1 4 3 1 3 9 2 2 2, , , 6 7 5 1 5 7 3 3 9 4 4 4, , , 4 4 4 9 9 6 8 0 0 J J A M u u p a l n y r y e . . . . . . 4 7 1 1 . . . . 8 4 8 0 3 3 3 2 5 3 7 9 . . . . 1 1 4 4 1 1 1 1 9 8 9 9 . . . . 6 9 9 0 1 1 8 8 0 3 . . . . 5 8 8 8 4 4 6 6 . . . . 7 6 6 0 2 2 2 3 5 4 8 0 . . . . 5 6 1 4 1 1 1 1 0 0 0 0 , , , , 7 1 7 4 2 0 7 4 0 0 0 0 Aug.. 4.6 29.2 18.5 11.2 6.5 30.0 10,300 1 End of month data. Total amount of credit extended by member firms Sept.. 2.9 30.2 19.0 11.7 6.6 29.6 9,910 of the New York Stock Exchange in margin accounts, estimated from Oct.'. 5.8 31.9 18.1 10.1 6.2 27.9 9,970 reports by a sample of 38 firms. Nov." 3.2 31.3 18.1 10.9 6.8 29.7 9,930 2 Figures are for last Wed. of month for large commercial banks reporting weekly and represent loans made to others than brokers or dealers for the purpose of purchasing or carrying securities. Excludes loans col- NOTE.—Adjusted debt is computed in accordance with requirements set lateralized by obligations of the U.S. Govt. forth in Regulation T and often differs from the same customer's net debit NOTE.—Customers' net debit and free credit balances are end-of-month balance mainly because of the inclusion of special miscellaneous accounts ledger balances as reported to the New York Stock Exchange by all in adjusted debt. Collateral in the margin accounts covered by these data member firms that carry margin accounts. They exclude balances carried now consists exclusively of stocks listed on a national securities exchange. for other member firms of national securities exchanges as well as balances Unrestricted accounts are those in which adjusted debt does not exceed the of the reporting firm and of its general partners. Net debit balances are loan value of collateral; accounts in all classes with higher ratios are total debt owed by those customers whose combined accounts net to a restricted. 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 AT BROKERS SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, unless otherwise indicated) (Per cent of total, unless otherwise indicated) Total Equity class (per ceat) Equity class of accounts debt in debit status (mil- Net Total End of lions End of period credit balance period of 80 or Under status 60 per cent Less than (millions dol- more 70-79 60-69 50-59 40-49 40 or more 60 per centof dollars) lars)! 1968— D N e ov c. .. 6 6 , , 2 2 0 0 0 0 2 2 5 4 . . 5 0 3 3 0 1 . . 2 4 1 19 9 . . 4 4 7 8. . 0 4 4 3 . .9 2 1 1 4 2. . 5 2 1968— D N e o c v 5 5 3 4 . . 2 4 4 4 3 0 . . 3 4 5 3 . . 2 5 5 5 , , 5 6 5 9 0 0 1969— M M S O N F A J J A J u u e a e o u p c a a p n l b n v t g y r r y t e . . . . . . . . . . ' . * . . . . . . . . . 5 5 5 5 5 5 4 5 5 5 5 , , , , , , , , , , , 1 0 7 5 6 3 0 0 9 5 9 7 0 5 7 7 4 4 8 4 9 3 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 1 1 1 1 1 4 3 0 2 0 6 7 4 7 7 4 . . . . . . . . . . . 1 5 5 0 0 9 4 8 0 4 4 2 2 2 2 2 2 2 2 2 2 2 2 3 5 4 3 6 6 4 7 9 8 . . . . . . . . . . . 5 5 7 3 0 2 9 4 3 4 2 2 2 2 2 1 1 1 1 1 1 1 0 0 2 0 8 8 7 9 9 8 8 . . . . . . . . . . . 5 0 6 8 8 3 8 0 0 3 4 1 1 1 1 1 1 9 9 7 9 9 2 1 2 1 3 2 . . . . . . . . . . . 5 5 7 9 0 5 8 2 7 3 6 4 7 7 8 4 5 5 5 8 8 8 . . . . . . . . . . . 8 2 9 4 9 6 4 2 2 4 6 2 2 2 1 1 1 1 1 1 1 1 1 0 9 0 8 4 8 4 6 3 5 . . . . . . . . . . . 1 1 3 1 6 7 8 8 0 1 4 1969 A J J A S O N F M M J u u a e e u p o c p a a n l n b v y g r t r y t e . . ' * 5 5 5 5 5 5 5 5 5 5 5 2 4 2 3 4 1 2 2 2 2 2 . . . . . . . . . . . 8 8 6 0 7 5 4 9 2 7 6 4 4 4 4 3 4 4 4 4 3 4 0 0 7 2 0 9 2 1 2 0 3 . . . . . . . . . . . 8 7 8 7 0 0 5 7 3 9 2 5 5 5 5 6 7 6 5 6 6 6 . . . . . . . . . . . 1 5 3 7 1 6 4 7 9 6 0 5 4 4 5 5 5 5 5 4 4 4 , , , , , . , , , , , 1 1 4 9 7 7 6 0 9 8 6 2 1 0 2 8 0 8 2 5 0 8 0 0 0 0 0 0 0 0 0 0 0 i See footnote 1 to table above. NOTE.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional NOTE.—Each customer's equity in his collateral (market value of col purchases. Balances may arise as transfers based on loan values of other lateral less net debit balance) is expressed as a percentage of current col collateral in the customer's margin account or deposits of cash (usually lateral value. sales proceeds) occur. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n OPEN MARKET PAPER; SAVINGS INSTITUTIONS A 37 COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by- Based on1— Placed through Placed End of period dealers 1 directly 2 Accepting' banks F.R. Banks Total Im- Ex- Total Others ports ports All r B el a a n te k d Other r B el a a n te k d Other Total Own Bills Own F ei o g r n - U i n n i t t o ed U f n ro it m ed Other bills bought acct. States States 1963 6,747 n.a. 1,928 n.a. 4,819 2,890 1,291 1,031 260 162 92 1,345 567 908 1,414 1964 8,361 n.a. 2,223 n.a. 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 1,719 1965 9,058 n.a. 1,903 n.a. 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966 13,279 n.a. 3,089 n.a. 10,190 3,603 •,198 983 215 193 191 2,022 997 829 1 778 1967 '16,535 n.a. 4,901 n.a. 11,634 4,317 ,906 1,447 459 164 156 2,090 ,086 989 2,241 1968—Nov. 22,220 n.a. 7,758 n.a. 14,462 4,389 ,605 1,352 253 58 114 2,612 ,476 922 1,992 Dec. 20,497 n.a. 7,201 n.a. 13,296 4^428 ,544 1,344 200 58 109 2,717 ,423 952 '2,053 1969—Jan.. 21,813 n.a. 7,873 n.a. 13,940 4,370 ,407 1,211 195 50 104 2,809 ,405 906 2,059 Feb. 22,865 n.a. 8,342 n.a. 14,523 4,420 ,473 1,263 210 91 99 2,757 ,449 859 2,112 Mar. 23,681 n.a. 9,003 n.a. 14,678 4,464 ,452 1,185 266 94 122 3,787 ,460 872 2,133 Apr. 24,390 ri.a1.0,076 n.a. 14,314 4,510 1,478 1,223 255 142 125 2,765 ,523 875 '2,112 May 25,305 n.a. 9,931 n.a. 15,374 4,668 1,387 1,179 208 76 183 3,022 ,591 910 2,166 June 26,004 602 9,557 640 15,205 4,880 1,413 1,183 231 41 159 3,186 ,673 967 «2,240 July. 28,346 889 9,463 980 17,014 4,991 1,388 1,123 264 40 162 '3,402 ,779 1,006 2,206 Aug. 29,476 990 10,360 1,220 16,906 5,145 1,390 1,108 282 62 159 3,535 ,791 1,084 '2,271 Sept. 29,564 954 10,917 1,542 16,151 '5,232 1,351 1,044 308 37 159 4,077 ,880 1,063 2,289 O No ct v . . . 3 3 1 3 , , 7 4 9 9 1 7 1 1 , , 2 06 0 9 0 1 1 1 0 , ,9 3 9 2 8 4 2 2 , , 5 8 7 7 3 9 1 1 7 8 , , 1 0 5 9 1 4 5 5, , 2 2 1 5 2 6 1 1 ,3 3 3 4 5 1 1 1 , , 0 05 7 8 6 2 2 7 6 7 6 4 4 1 9 1 1 4 4 9 6 3 3, , 6 7 7 3 6 4 , , 9 8 1 5 3 0 ' 1 1 , 0 0 6 61 3 '2 2 , 2 2 8 9 2 9 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 Mort- Other U.S. S a t n a d te C r o a r t p e o- Cash O as t s h e e ts r lia a ti b n e i d s li- De it p s o 2 s- l O ia t t i b h e i s e li r - r c e o s a u e c n r - v ts e (in months gage Govt. local and general govt. other' reserve accts. 3 le o ss r 3-9 O 9 ver Total 1945 4,202 62 10,650 1,257 606 185 16,962 15,332 48 1,582 n.a. 1960 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 n.a. n.a, n.a. 1,200 1961 28,902 475 6,160 677 5,040 937 640 42,829 38 277 781 3,771 n.a. n.a, n.a. 1,654 1962 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 n.a. n.a, n.a. 2,548 1963 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 n.a. n.a. n.a. 2,549 1964 40,328 739 5,791 391 5,099 1,004 886 54^238 48,849 989 4,400 n.a, n.a 2,820 1965 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 n.a. n.a. n.a, 2,697 1966 47,193 ,078 4,764 251 5,719 953 ,024 60,982 55,006 1,114 4,863 n.a. n.a. n.a, 2,010 1967 50,311 ,203 4,319 219 8,183 993 ,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968 53,286 ,407 3,834 194 10,180 996 ,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1968—Nov 52,946 ,532 3,913 200 10,001 914 ,267 70,773 63,800 1,707 5,266 945 ,132 1,125 3,202 Dec 53,286 ,407 3,834 194 10,180 996 ,256 71,152 64,507 1,372 5,273 811 ,034 1,166 3,011 1969—Jan 53,579 ,426 3,962 195 ,298 835 ,256 71,550 64,747 1,507 5,295 760 ,073 1,186 3,020 Feb 53,807 ,559 3,989 190 ,429 888 ,269 72,132 65,087 1,692 5,353 711 ,165 1,210 3,085 Mar 54,005 ,562 3,990 194 ,649 900 ,293 72,593 65,759 1,476 5,359 778 ,266 1,171 3,214 Apr 54,209 ,519 3,900 199 ,721 792 ,270 72,610 65,575 1,663 5,372 796 ,270 1,241 3,308 May 54,442 ,713 3,821 197 ,800 897 ,288 73,159 65,888 1,843 5,428 818 ,237 1,255 3,310 June 54,672 ,633 3,618 192 029 865 ,306 73,316 66,243 1,664 5,409 843 ,190 1,216 3,249 July 54,887 ,539 3,634 201 982 845 ,303 73,392 66,091 1,863 5,438 787 ,202 1,170 3,158 Aug 55,068 1,717 3,613 201 983 846 ,297 73,724 66,193 2,038 5,492 728 ,157 1,153 3,039 Sept 55,188 1,732 3,536 190 990 833 ,327 73,796 66,519 1,796 5,481 756 ,097 1,037 2,890 Oct 55,346 1,725 3,359 191 885 791 ,339 73,638 66,344 1,785 5,509 721 951 1,135 2,808 Nov 55,497 1,867 3,321 196 863 820 ,343 73,914 66,505 1,853 5,556 677 946 1,082 2,705 I 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 6, 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 savings bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 SAVINGS INSTITUTIONS a JANUARY 1970 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort- Real. Policy Other assets Total U S n ta it te e s d Sta lo te c a a l ndForeign > Total Bonds Stocks gages loans Statement value: 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 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 1968 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 1 1 9 9 6 6 6 7 1 17 6 7 7 , , 3 0 6 2 1 2 1 10 0 , , 5 8 3 6 0 4 4 4 , , 8 58 2 7 4 2 3 , , 9 13 9 1 3 2 2 , , 9 9 0 5 9 0 6 7 8 3 , , 6 9 7 9 7 7 6 6 1 5 , , 1 0 4 1 1 5 7 8 , , 5 9 3 8 6 2 6 6 4 7 , , 6 5 6 7 1 5 4 5 , , 8 1 8 8 8 8 1 9 0 , , 9 0 1 6 1 0 1 O 1, , 0 D 1 V 1 1 1968 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5^73 11,284 10,881 1968—Oct.'.. 186,258 10,831 4,557 3,199 3,075 78,994 68,507 10,487 69,177 5,531 11,134 10,591 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 69,941 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 July... 193,041 10,561 4,148 3,237 3,176 82,528 70,676 11,852 71,079 5,789 12,652 10,432 Aug 194,028 10,555 4,152 3,249 3,154 82,779 70,811 11,968 71,250 5,805 12,921 10,718 Sept.... 194,803 10,523 4,112 3,246 3,165 83,129 71,053 12,076 71,429 5,809 13,172 10,741 Oct.... 195,932 10,490 4,089 3,252 3,149 83,596 71,376 12,220 71,569 5,835 13,406 11,018 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and NOTE.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in "other assets." SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments 3 Total assets— End of period M ga o g r e t s - s G U e it c o i . u e S v s r t . . - Cash Other" lia T b o il t i a ti l es S c a a v p i i n ta g l s R a d p n e i r v s d o e id f r i u e v t n s d e - s m r B o o w n or e e - d y2 p L r o o i a n ce n s s s Other d p M u er r a i i d o n e d g O e p u in n e ts r g d t i a o a o n d t f d- 1960 60,070 4,595 2,680 4,131 71,476 62,142 4,983 2,197 1,186 968 n.a. 1,340 1961 68 834 5 211 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 7 762 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—Nov 129,899 9,696 2,693 9,942 152,230 129,972 9,838 5,371 2,398 4,651 1,317 3,788 Dec 130,802 9,555 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 1,275 3,584 1969 Jan 131 424 9 944 2,370 9,527 153,288 131,527 10,322 5,702 2,408 3,329 1.351 3,718 Feb 132 095 10 143 2,517 9,712 154,490 132,123 10,307 5,624 2,475 3,952 ,497 4,028 Mar 133 012 10 160 2,548 10,019 155,762 133,502 10,298 5,631 2,649 3,682 ,688 4,373 Apr 134 038 9 892 2,378 10,027 156,358 132,986 10,296 6,095 2,805 4,176 ,787 4,601 May 135 026 9 892 2,421 10,464 157,826 133,480 10,285 6,283 2,916 4,862 ,676 4,607 136 242 9 467 2 529 10,361 158,627 134,839 10 674 6,768 3,007 3 339 532 4 373 July 137 107 9 199 1 957 10 371 158,634 133,729 10 671 7 392 2,978 3 824 346 4 145 137,951 9,142 1,902 10,035 159,630 133,721 10,669 7,885 2,874 4,471 ,148 3,775 Sept 138 618 9 007 1,931 10,723 160,279 134,600 10,663 8,295 2,749 3,9t2 ,057 3,530 Oct.' 139,226 8,906 1,910 10,798 160,840 134,194 10,662 8,783 2,648 4,553 023 3,293 Nov . 139,648 8,996 2,123 11,076 161,843 134,435 10,659 9,124 2,516 5,109 '876 3,083 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 exclupreceding 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n FEDERALLY SPONSORED CREDIT AGENCIES A 39 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate laiid Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad- Cash Mem- Deben- Loans Loans vances Invest- and Bonds ber Capital Mort- tures to Deben- and Deben- Mortto ments de- and de- stock gage and cooper- tures dis- tures gage Bonds mem- posits notes posits loans notes atives counts loans bers (A) (D (A) (L) (A) (L) (A) (L) 1964 5,325 1 523 141 4 369 I 1QQ 1 227 1,940 1 601 958 686 2,247 2,112 3,718 3,169 1965 5,997 11.640 129 5,221 ,045 ,277 2,456 1,884 1,055 797 2,516 2,335 4,281 3,710 1966 6 935 2 523 113 6 859 037 369 4 266 3 800 1,290 1 074 2,924 2,786 4 958 4 385 1967 4,386 2,598 127 4*060 *432 ,395 5*348 4*919 l 'SOA 1,253 3*411 3 *214 5,609 4,904 1968—Nov... 5,040 2,581 81 4,701 ,322 ,402 6,758 6,166 ,583 3,636 3,570 6,107 5,423 5,423 Dec... 5,259 2,375 126 4,701 ,383 ,402 6,872 6,376 ,577 1,334 3,654 3,570 6,126 5,399 1969—Jan... 5,357 2,049 82 4,701 ,111 ,408 7,032 6,604 ,630 1,401 3,719 3,576 6,169 5,432 Feb... 5,298 2,069 82 4,601 ,131 ,434 7,244 7,193 ,680 1,425 n.a. 3,668 6,226 5,432 Mar... 5,331 2,181 97 4,674 ,244 ,443 7,417 7,193 ,663 1,425 3,921 3,743 6,317 5,535 5,764 2,051 99 5,021 ,179 ,447 7,574 7 317 ,648 1,426 n.a. 3,907 6,412 5,719 May.'.' 5,971 2,393 73 5,521 ,202 ,448 7,718 7,241 ,614 1,395 n.a. 4,044 6,483 5,716 June.. 6,413 1,964 141 5,521 .278 ,451 7,891 8,077 ,594 1,391 4,355 4,176 6,557 5,716 July.. 7,053 1,496 88 6,021 928 ,435 8,125 8,093 ,594 1,387 n.a. 4,310 6,605 5,867 Aug... 7,543 1,543 56 6,572 848 .438 8,577 8,093 ,572 1,422 n.a. 4,397 6,644 5,867 Sept... 7,940 1,657 97 7,072 891 1J444 8,999 8,815 ,585 1,420 4,329 4,357 6,676 5,927 Oct... 8,439 1,654 90 7,572 865 1,457 9,500 9,756 ,680 1,429 n.a. 4,192 6,700 5,950 Nov.. 8,802 1,968 110 8,172 939 1,465 10,009 10,205 1J705 1,445 n.a. 4,152 6,704 5,949 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, NOVEMBER 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: Jan. 26,1970 6.75 500 Debentures: Oct. 1,1967-70 41 75 Feb. 25,1970 7 450 June 10,1971 6.85 250 Jan. 20, 1970 5 209 May 25, 1970 6 500 Aug. 10,1971 4f 64 Feb. 20, 1970 5 82 July 27, 1970 8.40 650 Sept. 10,1971 4' 96 Feb. 20,1970 6.: 344 Bo J A A S O F A F M M M n u e e e u u p c d b p n a a a b t g g r s . r y r t . . e . . . : . . . 2 2 2 2 2 2 2 2 2 2 2 0 5 5 5 5 5 6 7 5 5 5 , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 7 7 7 7 7 7 7 7 7 7 7 1 0 0 0 0 0 0 0 0 0 0 6 6 6 8 8 5 8 6 6 6 8 . . . . . . . 2 7 6 8 3 2 8 5 0 0 5 8 0 0 6 6 2 2 5 2 6 2 2 3 3 5 5 0 5 0 5 2 0 0 4 0 0 0 0 0 0 0 5 0 0 6 0 J J D O S F S S N F M M u u e e e e e e c o n n b a a p b p c p t v e e . . r r . . t t t . . . . . . 1 1 1 1 1 1 U 1 1 1 1 0 0 1 1 0 2 2 0 0 0 0 , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 7 7 7 7 7 7 7 7 7 7 7 7 7 2 3 1 2 2 3 2 2 2 4 1 7 6 8 7 6 4 . 4 4 6 5 4 . . 6 . 5 . V 1 0 8 8 7 % " C U , 4 0 5 5 4 5 ' , 2 2 2 2 2 2 1 1 3 3 1 5 0 5 9 0 9 5 0 4 0 5 5 0 0 0 8 0 8 0 0 6 0 0 0 J J J A A J J J O F M A u u u u u u e u c p p l l l a n l n b y y y t y g r r y . e e . . . . 2 2 2 2 2 2 2 2 2 2 0 0 0 0 3 0 2 1 2 0 0 1 , , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 7 7 7 7 7 7 7 7 7 7 7 7 1 1 0 1 0 0 1 0 0 0 0 0 6 6 8 6 8 8 6 3 6 3 5 . . . . . . < . 6 4 8 1 1 3 7 L ' " f 5 0 5 5 0 0 i . 2 2 2 2 4 2 2 3 1 3 7 6 2 3 7 8 4 0 8 6 7 2 0 0 3 1 0 5 1 3 3 2 4 Feb. 25,1971 8.00 400 Oct. 20, 1971 6.00 447 N A M F A N e p o u o b a v r v g . y . . . . 2 2 2 2 2 2 5 6 5 5 6 5 , , , , , , 1 1 1 1 1 1 9 9 9 9 9 9 7 7 7 7 7 7 1 1 2 1 4 4 8 8 7 8 7 . . . . 8 2 6 2 0 ' 0 5 0 0 ' 2 2 2 2 2 3 0 5 5 5 0 5 0 0 0 0 1 0 Ba D nk e D J A F b s a e e p e n f b c n r o . . . . t r u c r 2 5 o 1 1 e o , , , , s 1 1 1 1 p : 9 9 9 9 e 6 7 7 7 r 9 a 0 0 0 t ives 7 8 6 8 . . . . 8 0 9 2 5 5 0 0 2 2 2 3 5 7 8 9 4 6 9 7 A S S O F F F e e e e e p c b b b p p t r . . . . t t . . . 2 2 2 2 1 1 1 1 0 0 3 5 5 5 , , , , , , , 1 1 1 1 1 1 1 9 9 9 9 9 9 9 7 7 7 7 7 7 7 2 3 5 4 2 2 2 - 78 4 8 5 5 4 4 ' 3 . . - 1 1 : ; 7 ' 0 2 2 2 3 1 1 1 0 0 3 3 0 4 5 0 0 7 0 9 8 5 Federal National Mortgage Associa- May 4,1970 8.05 229 Feb. 24,1976 5 123 tion—Secondary market opera- July 20,1976 51 150 Di t s i c o o n u s nt notes 3,193 Fe D de e r b a e l n i t n u te r r e m s: ediate credit banks A Ja p n r . . 2 2 0 2 , , 1 1 9 9 7 7 9 8 5 5' 2 1 8 5 5 0 Dec. 1,1969 6.70 495 Debentures: Jan. 5,1970 6.85 525 Dec. 12,1969 6 550 Feb. 2,1970 6.90 526 Feb. 10,1970 6.60 250 Mar. 2, 1970 7.10 445 Apr. 10, 1970 4% 142 Apr. 1,1970 7.90 448 Tennessee Valley Authority June 10,1970 6.60 400 May 4,1970 8M 473 Short-term notes 348 July 10,1970 7.38 400 June 1,1970 6.70 436 Bonds: Sept. 10,1970 4% 119 July 1,1970 8.20 352 June 1,1974 8.00 100 Oct. 13,1970 5U 400 Aug. 3, J970 7.95 454 Nov. 15, 1985 4.40 50 Nov. 10, 1970 8.30 350 July 1,1986 4r 50 Dec. 10,1970 8.10 250 Feb. 1,1987 41, 45 Feb. 10,1971 8.75 400 Federal land banks May 15,1992 5.7i 70 Mar. 11,1971 6 350 Bonds: Nov. 13, 1992 6' 60 May 5,1971 8.20 400 Feb. 15,1967-72 4% 72 Oct. 1994 8 100 NOTE.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERAL FINANCE a JANUARY 1970 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and Memo: iture account monetary assets Net Period B re u c d ei g p e t t s p t N e u e n x r e d e - t s i- l N e in n e g d t - B l o u a u d ys t g - 1 et s B d u u ( e r - o f d p ) i r g c lu i e t s t s P e d u t c e i b u e b s l r t i i c - A s P e t g i c l e u e u s n s r ' : c i- y S m L p e e e n a c s t s i c s a : c l b o I u y n n O v G t e t s o h s v t e - t r . S n L p o e e te c s s s ia : • l *b E o T q r i o n u r t g o a a w l l s - : o b T p a s i l e u r n a r e r g n a a y c - t e - Other n m O n n in e t o a e h a g f n t e n ' , c r s - t p o r s w r d a h i t e n v n i o b p s a e f t 2 t r e e - r issues Fiscal year: 1966 130,856 "•130.820 3,832 '134,652 '3,796 2,633 '4,041 2,470 '774 354 '3,076 -609 161 '270 1967 149,552153 701 5,053 158,254 -8,702 6,314 5,079 5,035 '4,000 -482 2,838 -5,124 303 rl ,042 1968 153 671 '17? MY?. 6 03C '178 833-25 162 21,357 5,944 3,371 1,949 -1,119 23,100 —397 1 728 r3 392 1969 187 792181 080 1 47f 184,556 3,236 6,142 633 7,263 2,190 -1,384 -1,295 596 1 490 147 Half year: 1967—July Dec 67 181 84 867 1 66( 86,527 -19,346 18,442 1,650 1,079 577 -436 18,872 -131 32 375 86 490 ff7941 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 97- 93,163 -10,282 10,450 1,446 -380 1,587 -384 11,076 -598 -105 -1,496 9,853 1969—Jan-Junep . 104,962 91,101 503 91,606 13,356 -4,308 -806 7,643 603 -1,000 -12,364 1,194 1,260 1,461 Month: 1968 Nov r12 709'15 Ofiri 5' '15,121 '-2,412 -331 -80 209 230 -165 -686 -3,754 '469 r188 Dec 15,820 14,465 -7 14,394 1,427 1,166 -238 99 35 -185 979 1,932 -279 -753 4,565 1969—Jan.. .. 15,845 15,798 -3' 15,761 84 1,383 -33 612 112 -1,000 1,626 2,504 789 1 583 Feb 14,590 14,161 37: 14,734 -144 -648 195 1,159 274 -1,887 -2,304 -126 -399 Mar 13 727 15 617 15,639 -1 912 782 -91 150 122 418 — 114 — 171 1 208 23,596 15,977 5( 15,972 7,625 -1,080 -559 1,266 -449 -2,456 3,380 2,119 330 May 13 346 15 279 48' 15 764 —2 41 f 1 599 — 137 2 571 375 — 1 485—2 458 1 843 400 23!805 11,895 -373 13,522 10,283 -6,345 -188 1,885 169 -8,587 186 829 -681 July 12 542 15 152 15 695 —3 153 3 292 M.316 -21 191 M 438 —217 —484 402 14 999 16 790 31( 17 106 —2 107 3,175 — 829 1,623 44 679 — 1,651 —62 285 20 406 17 167 44! 17 616 2 790 498 -643 511 -281 -375 2,608 577 770 Oct 11 832 17 60? 342 17 944 —6 112 3,709 -47 -846 119 4,388 — 1,166 19 577 Nov 14,332 15,225 23f 15,461 -1,130 3,718 -141 1,223 -340 2,695 958 -4 -610 Selected balances Treasury operating balance Federal securities pe E o r n i f o d d B F a . n R k . s ac l c T a o o n a a u d x n nts ba G la o n ld ce Total se P c d u u e b r b i l t t i i c es s A ec g u e r n it c i y es S i p s G I s e n u c o v e i v a s e t l s L . tm e a s c e s c : n o t O u s n t o h t f s er S n L p o e e t s c e s i s a : 4 l E p T h q u b o e u b y t l a d l a i l l c s: s c p p D M o G r o N r e i n o e p v b o v s m a s t w o . t t — o o e . r - " : f ed Fiscal year: 1965. 672 10 689 108 11 469 317 274 9,335 48,650 '17 890 3 455 '261 614 8 309 1966.. 766 10050 102 10 917 319,907 13,377 51,120 Ml 664 3 810 '264 690 10 436 1967.. 1 311 4 272 112 5,695 326,221 18,455 56,155 '17 663 3,328 '267 529 9 220 1968... . 1 074 4 113 111 5,298 347,578 24,399 59,526 '19 614 2,209 '290 629 10 041 1969* 1 258 4,525 112 5,894 353,720 '14,249 66,790 '70 871 825 '279^483 24,071 Calendar year: 1967. 1 123 4 329 112 5 564 344,663 20,206 57,234 18 223 2,892 286 520 8 994 1968 703 1,885 111 4,700 358,029 15,064 59,146 70 266 1,825 291,855 21,481 Month: 1968 Nov 478 1 179 HI 2 768 356,863 20,267 59,047 70 632 2 010 295 441 16 328 Dec 703 3,885 111 4,700 358,029 15,064 59,146 20 266 1,825 291,855 21,481 1969 Jan 517 6 576 111 7 204 359,412 15,031 59,759 70 378 825 293 481 21,840 Feb 505 4 284 111 4 900 358,764 15,225 60,918 ?n652 825 291 595 22.068 Mar 783 1,891 111 4,786 359,546 15,134 61,068 70 774 825 292,012 22,696 Apr 950 7,105 111 8,166 358,466 14,575 62,334 ?(1325 825 289,557 23,520 May 621 4,976 112 5,708 360,065 14,437 64,905 20 700 825 288,072 24,043 1,258 4,525 112 5,894 353,720 14,249 66,790 ?0 871 825 279,483 24,991 July 935 4 630 112 5 677 357 012 15,572 66,768 ?1 062 825 283 930 25 809 894 1 020 112 4,026 360,187 14,743 68,39 71 106 825 284,608 27,121 Sept 1 003 5,519 112 6,634 360,685 14,100 68,90 70 826 825 284,233 27,734 Oct. 954 •1402 112 5,468 364,394 14,053 68,05. 70 946 825 288,621 29 147 Nov 980 5,335 112 6,426 368,112 13,905 69,278 20 608 825 291 306 n.a. 1 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 + 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C n o co rp m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n a s xes Period Total W he i l t d h- N w he o it l n h d - - fu R n e d - s t N ot e a t l G ce r r i e p o - s ts s fu R n e d - s c E o P r n m t a o a t y l r p l x - i l e b o s u y a t m S i n o e e d l n n f s - t e in U m s n u p - r l. . c O e n r i t p e h e - t t e s r 2 t N ot e a t l Excise Cus- E a g s n i t f a d t te c M e r ip e is - t c s . ^ empl. Fiscal year: 1966 130,85642,811 18,486 5,851 55,446 30,834 761 20,662 3,777 1,129 25,567 13,062 1.761 3,066 1,875 1967 149,555522 5500,521 18,850 7,845 61,526 34,918 94626,047 1,776 3,659 1,867 33,349 13,719 1,901 2,978 2 108 1968 153,671 57,301:2 0,.951 9;527 68,726 29,897 1,23: 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 1969 187,79270,182 27,258 10", 1—91 87,249 38,338 1,66032,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,916 Half year: 1967—July-Dec. . 67,181 27,211 4,150 ,805 11,345 576 2,679 105 1,335 96415,082 7,076 993 1,332 1,125 1968—Jan.-June.. 86,49030,089 166,802 8,971 37,921 18,551 655 5,001 1,439 2,011 1,087 9,538 7,003 1,045 1,718 1,369 July-Dec... 82,881 33,712 5,515 475 38,751 15,494 785 4,945 131 1,290 1,179 7,544 7,834 1,213 1,417 1,413 1969—Jan. June*. 104,96236,43221,750 9,708 48,47522,862 876 7,586 1,583 2,036 1,170 22",375 7,379 1,107 2,060 1,579 Month: 1968—Nov.. '12,708 '6,337 202 •40 '•6,499 679 '138 3,126 346 ••186'3,658 ,354 186 229 '240 Dec. 15,820 6,068 376 46 6,397 5,273 1,850 15 49 2,118 ,412 195 256 284 1969—Jan.. 15,845 5,113 5,184 75 10,222 1,665 62 110 159 218 2,176 ,254 119 277 194 Feb.. 14,590 7,254 1,202 1,169 8,456 784 102 128 773 183 4,880 ,152 144 230 217 Mar.. 13,727 6,015 843 2,858 3,999 5,189 223 134 63 198 2,865 ,156 197 308 237 Apr.. 23,596 5,164 9,540 2,598 12,106 5,554 231 958 162 206 3,881 ,160 224 631 271 May. 13,346 6,681 804 2,725 4,760 959 152 190 821 5,748 ,272 213 310 237 June. 23,805 6,244 4,171 292 0,123 8,692 104 64 61 2,823 ,395 210 319 347 July.. 12,542 6,005 548 150 6,404 1,196 126 124 2,879 1,419 222 221 328 Aug.. 14,999 7,014 319 103 7,230 716 145 601 217 5,209 1,263 213 257 256 O N Se o c p t v t . . . . . . . 2 1 1 0 1 4 , , , 8 3 4 3 3 0 2 2 6 5 6 7, , , 1 9 2 0 4 8 8 8 4 3,9 4 1 1 1 6 2 9 0 6 8 3 7 4 3 7 9 6 , , , 2 6 7 3 3 7 6 6 6 5 1 , , 6 1 7 8 7 7 0 3 8 3 1 1 3 4 2 6 4 2 2 2 3;547i 3 9 4 5 3 3 1 2 2 1 0 1 8 5 6 7 4 3 2 , , , 0 3 0 7 6 2 8 4 2 1 1 1, , , 6 2 2 0 5 9 6 9 5 2 2 1 3 1 8 1 5 5 2 2 2 5 2 6 4 2 4 2 2 3 9 7 3 2 0 4 Budget outlays4 Period Total t f i e N d o n n e a s - a - e l a I ff n a t i l r . s s S e p r a e a r - c c e h A t c u g u r r l e - i- o N u u r r r a e a c - t l - es t m C r a a e o n n r m d s c p e - . d h e C o m a v u o n e u s m l d n i o n . - p g E p m d t o a i n w u a o n d c n e a - r - w H e a e l n a fa d lt r 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 t g i r n a o o a t c n v r n - t a s s . 3 - - Fiscal year: 1966 34,652 56,785 4,490 5,933 3,679 2,035 7,135 2,644 4,496 31,320 5,920 11,285 2,360 -3,431 1967 158,254 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 78,833 80,517 '4,619 4,721 '5,943 '1,702 '8,047 '4,076 '7,012 '43,508 '6,882 13,744 '2,561 -4,499 1969 84,556 81,239 4,056 4,247 6,046 2,131 7,943 1,041 7,604 49,007 7,703 15,795 2,860 -5,117 1970" 92,860 Half year: 1967—July-Dec 86,527 •38,739 2,292 1968—Jan.-June 92,335 •41,784 2,429 July-Dec 93,163 39,803 1,906 2,133 4,924 ,268 4,501 685 3,382 23,899 3,664 7,609 ,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 -3,156 Month: 1968—Nov 15,121 6,605 319 335 567 206 614 '-5 '475 4,106 612 ,328 '158 ••—195 Dec 14,394 6,923 94 353 320 203 601 3 638 3,956 627 ,324 192 -841 1969—Jan 15,761 6,887 271 347 626 144 635 234 576 4,103 636 ,280 226 -204 Feb 14,734 6,416 381 335 271 72 406 204 721 4,058 651 ,349 173 -302 Mar 15,639 6,815 286 385 327 152 583 -79 569 4,405 715 ,411 278 -210 15,972 6,934 377 353 448 199 537 46 632 4,373 695 ,407 226 -255 May.'.'.'. '.'.'.'.'.'.'.'.I'.15,764 6,733 459 367 153 154 657 273 744 4,197 686 ,388 244 -291 June 13,522 7,651 374 326 -701 141 625 -267 978 3,971 656 ,352 239-1,823 July 15,695 6,560 324 319 659 223 613 249 411 4,299 660 ,364 272 -258 Aug 17,106 6,868 299 337 1,130 368 858 311 524 4,336 669 ,440 279 -314 Sept 17,616 6,767 357 294 1,801 286 784 225 666 4,219 693 ,513 225 -215 Oct 17,944 7,267 374 327 1,108 263 964 588 654 4,484 694 ,220 248 -248 Nov 15,461 6,303 443 267 393 188 735 228 398 4,239 710 ,571 249 -263 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 1968) 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. « Estimate presented in the Sept. 1969 Summer Budget Review. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES • JANUARY 1970 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l t s a i » s c l Total Total Bills Ma C c r e a k r t e t e i t f a s i b - le Notes Bonds 2 b C v i o b e o n r l n e d t - - s T N o o ta n l m 3 arke b S t i o n a a n b g v d l s - e s i S ss p u e e ci s a 4 l & 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 59.0 97.0 3.0 52.0 49.7 46.1 1965—Dec 320 9 270 3 214 6 60 2 50 2 104 2 2 8 52 9 50.3 46.3 1966—Dec 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Ian 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 64.9 353.7 284.9 226.1 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 66.8 360.2 289.9 231.2 74.0 78.5 78.7 2.5 56.3 52.1 68.4 Sept 360.7 289.9 231.2 74.0 78.5 78.7 2.5 56.3 52.1 68.9 Oct 364.3 294.4 235.0 79.0 85.4 70.6 2.4 56.9 52.1 68.1 Nov 368.1 297.0 237.9 81.9 85.4 70.6 2.4 56.6 52.1 69.3 Dec 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1 Includes non-interest-bearing debt (of which $633 million on Dec. 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 p n er d i o o d f p T d u o e b t b a li t l c ag G t U a e r o n n u S v c d s . t i t e . s B F a . n R k . s Total m C b e a o r n m c k ia - s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m u c ie r e - s - r c O a o t t r i h p o e n o r - s g S l a o o t n c v a a d t ts e l . Savi I n n g d s ividu O a t l h s er n F a i o n t a i r t n o e e n d i r g a - n l1 O i m t n o t v i r h s e s e c s r . - 2 funds bonds securities 1939—Dec 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1962—Dec 303.5 53.2 30.8 219.5 67.1 6.0 11.5 18.6 20.1 47.0 19.1 15.3 14.8 1963—Dec 309.3 55.3 33.6 220.5 64.2 5.6 11.2 18.7 21.1 48.2 20.0 J5.9 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—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 Mar 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 19.1 July 357.0 85.0 54.1 217.9 56.0 3.2 7.4 15.8 27.5 51.2 25.7 11.1 19.9 Aug 360.2 86.6 54.9 218.6 54.7 3.2 7.2 16.8 27.3 51.2 26.0 11.9 20.4 Sept 360.7 86.9 54.1 219.6 54.4 3.1 7.1 15.2 27.6 51.1 26.7 13.1 21.2 Oct 364.4 86.1 55.5 222.7 55.7 3.0 7.1 16.4 27.0 51.1 27.4 12.9 22.1 Nov 368.1 87.0 57.3 223.8 56.4 3.0 7.2 16.8 27.3 51.1 27.6 12.1 22.2 1 Consists of investment of foreign and international accounts in The debt and ownership concepts were altered beginning with the the United States. Mar. 1969 BULLETIN. The new concepts (1) exclude guaranteed se- 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 1 19 9 6 6 7 6 — D De e c c 3 3 1 1 2 2 1 2 8 6 , , 0 4 2 7 5 6 1 1 0 0 4 5 , , 3 21 6 8 3 6 69 4 , , 8 6 7 8 0 4 4 3 0 4 , , 5 49 3 3 4 7 5 8 9 , , 1 4 5 4 9 6 2 1 8 8 , , 0 8 0 5 5 9 8 8, , 4 4 1 3 7 3 1 16 6 , , 6 9 7 2 9 3 1968 Dec 31 . . 236 812 108,611 75,012 33,599 68,260 35,130 8,396 16,415 1969 Oct 31 235 029 109 550 78 990 30,560 74,762 26,247 8,363 16,107 Nov 30 237 919 120,144 81,914 38,230 73,305 20,026 8,360 16,083 U.S. Govt. agencies and trust funds: 1966 Dec 31 1967 Dec 31 1968 Dec 31 . 15 402 2,438 1 034 1,404 4,503 2,964 2,060 3,438 1969 Oct 31 16 110 1,833 805 1,028 5,319 3,463 2,059 3,437 Nov 30 . . . 16 212 2 320 832 1,488 5,926 2 472 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 Oct 31 55 515 33 240 20 686 12 554 12 824 8 776 220 454 Nov 30 57 318 36 187 22 430 13 757 12 811 7 641 224 453 Held by private investors: 1966 Dec. 31 1967 Dec. 31 1968 Dec. 31 168 473 77,670 55,222 22,448 50,877 21,223 6,133 12,569 1969 Oct. 31 163 404 74,477 57,499 16,978 56,619 14,008 6,084 12,216 Nov 30 164,389 81,637 58,652 22,985 54,568 9,913 6,077 12,193 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 10,415 8,036 26,370 6 386 485 502 1968 Dec. 31 53 174 18,894 9,040 9,854 23,157 10 035 611 477 1969—Oct. 31 44 678 12,339 5,639 6,700 25,370 5 989 553 427 Nov. 30 45 268 15,274 6,252 9,022 24,615 4 402 562 416 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 1,117 709 229 773 1969 Oct 31 2 971 351 138 213 1,316 373 207 725 Nov 30 2 945 496 142 354 1,256 268 203 722 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 1,892 721 1,120 2,221 1969 Oct 31 6 152 694 324 370 1,822 387 1 189 2,061 Nov 30 6 210 869 373 496 1,843 258 1,200 2,040 Nonfinancial corporations: 1966—Dec 31 6,323 4,729 3,396 1,333 1,339 200 6 49 1967 Dec 31 4,936 3,966 2,897 1,069 898 61 3 9 1968 Dec 31 5 915 4 146 2,848 1,298 1,163 568 12 27 1969 Oct 31 .... 5 236 3,317 2,173 1,144 1,694 202 13 10 Nov 30 5 599 3,770 2,432 1,338 1,732 74 14 9 Savings and loan associations: 1966 Dec 31 3 883 782 583 199 1,251 1,104 271 475 1967 Dec 31 4,575 1,255 718 537 1,767 811 281 461 1968 Dec 31 4,724 1,184 680 504 1,675 1,069 346 450 1969 Oct 31 4 041 686 272 414 2,024 531 338 462 Nov 30 . . .. 4 058 893 327 566 2,004 367 337 458 State and local governments: 1966 pec 31 15 384 5,545 4,512 1,033 2,165 1 499 1 910 4,265 1967 Dec 31 14 689 5,975 4,855 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 Oct 31 13,442 5,846 4,911 935 2,784 610 1,183 3,020 Nov 30 14,486 6,802 5,517 1,285 2,925 546 1,212 3,001 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 Oct 31 86 884 51,244 44,042 7,202 21,609 5 916 2 601 5 511 Nov 30 85,823 53,533 43,609 9,924 20,193 3,998 2,549 5,547 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 5,785 commercial banks, 49S mutual savings agencies and certain Govt. deposit accounts have been removed from U.S. banks, and 751 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 44 U.S. GOVERNMENT SECURITIES a JANUARY 1970 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Dealers and brokers securities 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.S. Govt. Other m b C e a o r n m c k i - a s l o A th l e l r securities 1968 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 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 Aue 2,286 1,965 233 51 36 948 104 776 459 311 2,442 2,017 290 101 34 1,009 80 835 520 342 Oct 2 725 2 209 364 111 41 1 145 99 1 006 474 460 Nov. 2,439 2,114 225 60 40 920 87 913 518 413 Week ending— 1969—Nov. 5 2,598 2,196 278 88 35 956 81 1,022 540 496 12 2,063 1,749 210 65 39 785 79 800 399 261 19 2,247 1,912 216 78 41 877 96 745 529 518 26 2,738 2,425 232 38 43 1,031 96 1,076 534 440 Dec 3 2 755 2,402 256 57 40 1,154 89 1,014 498 354 10 2 338 2,018 240 38 43 1,108 85 756 479 443 17 2,507 2,064 334 64 46 1,145 103 897 362 383 24 2,538 2,173 261 55 52 992 90 968 488 416 31" 2,763 2,322 294 60 87 301 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 Commercial banks U.S. Period Ma t A i t e u l s l ri- W y i e t a h r in y 1 ea -5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e i o u e n v s r c t i y . - Period sou A r l c l es Y N C o e it r w y k w E h ls e e r - e C t o io r n po s r i a- o A th l e l r 1968—Nov 3,766 2,948 160 539 120 652 1968—Nov. 4,191 877 1,199 ,325 791 Dec 4,093 3,605 136 304 48 615 Dec 4,431 1,212 886 ,461 871 1969—Jan 2,918 2,757 0 130 32 508 1969—Jan 3,100 737 641 ,310 412 Feb 2,389 2,193 34 144 17 449 Feb 2,660 417 361 ,311 573 Mar.. . . 2,230 2,119 -37 131 18 507 Mar. 2,322 396 370 ,031 526 Apr 3,107 2,998 -60 116 54 740 Apr 3,392 963 497 ,086 847 May.... 2,585 1,964 71 498 52 792 May 3,103 542 376 ,072 1,112 June.... 2,454 1,975 56 408 16 703 June 2,994 717 520 862 896 July.... 2,250 1,901 40 300 9 626 July 2,372 810 363 690 509 Aug.. . . 2,299 1,853 170 230 47 492 Aug 2,539 563 405 733 838 Sept 2,313 1,936 162 181 34 496 Sept 2,586 771 564 470 781 O No ct v 2 3, , 4 3 5 8 1 9 3 1 , , 1 9 5 0 8 3 2 1 5 5 6 5 1 1 0 9 6 3 3 3 7 0 5 60 1 6 2 O N c o t v 2 3, , 6 2 9 2 2 6 1,0 4 5 6 0 2 3 71 9 2 2 5 8 2 5 0 6 1,0 8 7 5 3 2 Week ending— Week ending— 1969—Oct. 1. 2,115 1,237 497 357 427 1969—Oct. 1.. 2,389 619 473 257 1,040 1,602 1,009 321 258 464 8.. 1,825 377 302 221 926 15. 2,339 1,844 254 214 450 15.. 1,928 383 249 414 882 22. 2,021 1,608 192 176 532 22.. 2,199 353 413 586 847 29. 3,100 2,660 244 135 583 29.. 2,471 548 455 793 675 Nov. 5. 3,917 3,491 236 137 585 Nov. 5.. 4,141 1,060 944 786 1,351 12. 3,611 3,269 172 127 514 12.. 3,987 1,206 751 764 1,267 19. 3,152 2,890 134 101 651 19.. 3,397 890 615 908 984 26. 3,358 3,118 133 655 26.. 3,288 936 561 930 861 NOTE.—The figures include all securities sold by dealers under repur- 1 All business corporations, except commercial banks and insurance chase contracts regardless of the maturity date of the contract, unless the companies. contract is matched by a reverse repurchase (resale) agreement or delayed delivery sale with the same maturity and involving the same amount of NOTE.—Averages of daily figures based on the number of calendar days securities. Included in the repurchase contracts are some that more in the period. Both bank and nonbank dealers are included. See also clearly represent investments by the holders of the securities rather than NOTE to the opposite table on this page. dealer trading positions. Average of daily figures based on number of trading days in the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, DECEMBER 31, 1969 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—font. Jan. 2, 1970... 2,911 May 31, 1970.... 1,501 Oct. 1, 1971. 72 Aug. 15, 1970 4 4,129 Jan. 8, 1970... 2,903 June 4, 1970.... 1,200 Nov. 15, 1971. 1,734 Aug. 15, 1971. 2,806 Jan. 15, 1970... 2,906 June 11, 1970.... 1,200 Feb. 15, 1972. 2,006 Nov. 15, 1971. 2,760 Jan. 22, 1970... 2,900 June 18, 1970 1,201 Apr. 1, 1972. 34 Feb. 15, 1972. 2,344 Jan. 29, 1970... 2,901 June 22, 1970f..• 4,508 May 15, 1972. 5,310 Aug. 15, 1972. 2,579 Jan. 31, 1970... 1,501 June 25, 1970 1,209 Oct. 1, 1972. 33 Aug. 15, 1973. 3,894 Feb. 5, 1970... 3,005 June 30, 1970 1,702 Apr. 1, 1973. 34 Nov. 15, 1973. 4,348 Feb. 13, 1970... 3,000 July 31, 1970 1,702 May 15, 1973. 1,157 Feb. 15, 1974. 3,128 F F e e b b . . 2 1 6 9 , , 1 19 9 7 7 0 0 . . . . . . 3 3 , , 0 0 0 0 4 2 A Se u p g t . . 3 3 1 0 , , 1 1 9 9 7 7 0 0.... 1 1 , , 7 5 0 0 1 5 A O p ct r . . 1 1 , , 1 1 9 9 7 7 3 4 . . 3 3 0 4 N M o a v y . 1 1 5 5 , , 1 1 9 9 7 7 4 4 , 3 7 * 2 3 , , 2 5 4 8 0 4 Feb. 28, 1970... 1,501 Oct. 31, 1970.... 1,003 Aug. 15, 1974. 10,284 May 15, 1975-85.. 4V 1,214 Mar. 5, 1970. 3,001 Nov. 30, 1970.... 1,001 Oct. 1, 1974. 4 June 15, 1978-83 1,552 A A A A M M M M M A A p p p p p p a a a a a r r r r r r r r r r r . , . . . . , . . . . 2 2 2 2 3 3 1 1 1 2 3 9 0 6 3 2 1 6 9 •2 , , , , , , , , , , , 1 1 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 9 9 7 7 7 7 7 7 7 7 7 7 7 0 0 0 0 0 0 0 0 0 0 0 f f 2 3 3 3 3 1 1 1 1 1 1 1 . , , , , , , , , , , , 7 2 0 0 5 2 2 0 2 0 2 7 0 0 0 0 0 0 0 1 0 1 5 0 1 1 1 1 2 8 3 4 0 0 2 2 Tr A O N D A M M F ea e e u p o c b s a a c t r g v u . . y y . . . . r y 1 3 1 1 1 1 5 1 1 5 5 1 5 5 n , , , , , , , , o t 1 1 1 1 1 e 1 1 1 s 9 9 9 9 9 9 9 9 7 7 7 7 7 7 7 7 1 0 0 0 0 0 0 0 . . . . . . . 2 7 7 8 2 1 , , , , , , 6 3 5 7 7 0 1 7 2 0 9 6 0 1 9 9 3 5 4 2 3 Tr M A M e N M M F F a e e u o s a a a b b a u g v r r . y . y r . . . . y 1 1 1 1 1 1 1 1 5 5 b 5 5 5 5 5 5 , , o , , , , , , n 1 1 1 1 1 1 1 1 d 9 9 9 9 9 9 9 9 s 7 7 7 6 7 7 7 6 6 4 6 6 5 5 5 6 . . . . . . - - 7 7 0 1 • . . . . . . . . . . • • 5 5 • 6 2 2 7 6 6 : < y V 1 W / 4 i 2 2 1 5 6 3 3 1 , , , , , , , , , , 2 2 6 6 9 1 7 7 2 8 8 8 9 4 6 3 1 0 1 2 7 8 0 9 N A F F N M F M F e e e e o u o b b b a a b v g v . . . y y . . . . 1 1 1 1 1 1 1 1 1 5 5 5 5 5 5 5 5 5 , , , , , , , , , 1 1 1 1 1 1 1 1 1 9 9 9 9 9 9 9 9 9 8 8 8 9 8 9 9 8 8 8 7 9 8 0 5 0 0 5 - - - . . . . 9 . . 9 9 . . . . . . 3 . . 2 . . 4 . . 4 4 2 1 1 3 1 1 , , , , , , , , 8 2 5 5 9 0 4 8 2 1 5 0 0 8 9 0 1 4 9 8 7 6 9 7 8 4 9 May 7, 1969. 1,204 Feb. 15, 1971. 2,931 June 15, 1967-72.. 2 V 1,241 May 14, 1969. 1,200 Apr. 1, 1971. 35 Sept. 15, 1967-72..2V! l]951 Convertible bonds May 21, 1969. 1,201 May 15, 1971. 4,265 Dec. 15, 1967-72..2Vf 2,,582 Investment Series B May 28, 1969. May 15, 1971. 4,173 Feb. 15, 1970 4 4,,381 Apr. 1, 1975-80..2M 2,426 t Tax-anticipation series. NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered' Total Gener- U.S. district Total Roads Veter- Other al Reve- HAA» Govt. State and Other2 Edu- and Util- Hous- ans' purobli- nue loans stat. cation bridges ities * ing5 aid poses gations auth. 1962 8,845 5,582 2,681 437 145 1,419 2,600 4,825 8,732 8,568 2,963 1,114 1,668 521 125 2,177 1963 10,538 5,855 4*180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,396 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 "iio 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 5,667 1968 16,596 9,269 6,517 528 282 2,774 5,946 7,884 n.a. 16,489 4,820 1,526 2,833 787 6,523 1968—Nov.. 1,021 585 320 HI 6 223 324 473 n.a. 997 271 25 115 121 465 Dec... 1,140 337 781 22 20 415 706 n.a. 1,138 169 46 196 20 707 n.a. 1969—Jan... 1,262 942 309 11 546 285 432 n.a. 1,261 362 165 169 4 561 Feb.... 987 460 378 143 7 144 477 366 n.a. 985 245 222 306 145 202 Mar... 538 326 201 11 110 149 279 n.a. 538 261 96 71 3 107 1,801 1,007 785 9 539 738 525 n.a. 1,801 365 36 302 5 1,095 May!!. 1,109 637 272 177 23 266 338 504 n.a. 1,094 323 109 118 191 353 June... 734 517 178 39 97 154 485 n.a. 725 237 45 141 1 301 July... 1,092 825 257 10 405 242 444 n.a. 1,091 283 169 104 6 529 Aug 804 580 211 12 228 254 321 n.a. 797 206 155 81 353 Sept.... 535 338 105 49 43 129 405 n.a. 531 147 5 73 70 236 Oct.... 1,264 889 353 23 482 264 517 n.a. 1,259 373 39 264 68 515 Nov.. . 872 487 347 33 5 102 352 416 n.a. 867 209 166 136 47 315 1 Only bonds sold pursuant to 1949 Housing Act, which are secured 5 Includes urban redevelopment loans. by contract requiring the Housing Assistance Administration to make annual contributions to the local authority. NOTE.—The figures in the first column differ from those shown on the 2 Municipalities, counties, townships, school districts. following page, which are based on Bond Buyer data. The principal 3 Excludes U.S. Govt. loans. Based on date of delivery to purchaser difference is in the treatment of U.S. Govt. loans. and payment to issuer, which occurs after date of sale. Investment Bankers Assn. data; par amounts of long-term issues 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 46 SECURITY ISSUES a JANUARY 1970 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. U.S. U.S. Govt. State Others Total Govt.2 agency* and local* Total P o u ff b er li e d d j P p ri l v a a ce te d ly Preferred Common 1961 35,527 12,253 1,448 8,360 303 13,165 9,420 4,700 4,720 450 3,294 1962 29,956 8 590 1 188 8 558 915 10,705 8,969 4,440 4,529 422 1 314 1963 35,199 10 827 1 168 10 107 887 12,211 10,856 4,713 6,143 343 1 011 1964 37,122 10,656 1,205 10,544 760 13,957 10,865 3,623 7,243 412 2,679 1965 40,108 9,348 2,731 11,148 889 15,992 13,720 5,570 8,150 725 1,547 1966 45,015 8,231 6,806 11,089 815 18,074 15,561 8,018 7,542 574 1,939 1967 68,514 19,431 8,180 14,288 1,817 24,798 21,954 14,990 6,964 885 1,959 1968 65,562 18,025 7,666 16,374 1,531 21,966 17,383 10,732 6,651 637 3,946 1968—Sept 3,819 361 250 1,423 228 1,557 1.159 726 433 1 397 Oct 6,111 430 1,147 2,260 46 2,129 ,604 1,099 595 25 499 Nov 3,294 379 1,037 18 1,767 ,301 939 362 41 425 Dec 3,812 377 223 1,138 20 2,054 ,572 607 965 19 464 1969 Jan . 4,284 427 424 1,244 13 2,075 ,616 980 636 67 393 Feb 4,086 443 450 974 74 2,045 ,237 842 395 72 736 Mar 3,514 382 453 520 61 2,098 ,344 835 509 98 657 Apr 5,780 412 981 1,627 12 2,748 ,917 1,268 649 68 762 May 4,608 410 950 1,088 85 2,076 ,382 871 510 10 684 June.... 4,056 419 351 710 45 2,530 ,786 1,272 514 50 694 July 5,014 421 940 1,052 24 2,478 ,889 1,279 609 40 553 Aug 3,314 377 600 794 17 1,427 944 68S 259 72 410 Sept 3,958 353 587 531 60 2,427 ,701 1,222 479 74 652 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o a u n s d Transportation Public utility Communication a R nd ea f l i n e a st n a c t i e al Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1961 3,371 741 800 389 692 20 2,347 692 692 1 128 1 522 753 1962 2,880 404 622 274 573 14 2,279 562 1,264 43 1 397 457 1963 3,202 313 676 150 948 9 2,259 418 953 152 2 818 313 1964 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965 4,712 704 1 153 251 953 60 2,332 604 808 139 3,762 514 1966 ... 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2 247 186 1968 . 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969 Jan 299 104 169 200 257 2 509 118 181 4 201 31 Feb 344 169 197 346 329 18 136 179 56 176 96 Mar 297 194 192 305 139 63 352 52 198 34 166 107 Apr . 327 186 330 276 151 101 627 157 43 1 438 110 May 434 134 101 397 141 4 371 20 129 68 203 70 505 186 119 314 202 13 •606 96 187 4 167 131 July'... 636 238 133 177 122 4 446 47 286 266 123 Aug.r,.. 284 77 37 161 48 6 354 153 122 4 99 82 Sept 501 124 142 209 181 9 413 131 230 43 233 210 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments, International Bank for Reconstruction and number of units by offering price. Development, and domestic nonprofit organizations. 2 Includes guaranteed issues. 3 Issues not guaranteed. NOTE.—Securities and Exchange Commission estimates of new issues • See NOTE to table at bottom of opposite page. maturing in more than 1 year sold for cash in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES an 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 incuts change issues ments change I c n o v s e . s i t, Other I c n o v s e . s ' t, Other I c n o v s e . s ' 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 35 384 16,234 19,150 19,381 5,418 13,962 9,945 6,057 3,857 6,959 6,088 —900 1968 I 7,720 3,021 4,700 3,997 1,286 2,711 2,493 1,230 823 912 1,670 319 II 8,421 3,933 4,489 5,124 1,308 3,816 1,873 1,424 1,053 1,572 820 -147 m 8,280 4,112 4,167 4,732 1,249 3,482 2,127 1,421 949 1,914 1,178 -493 IV 10,962 5,168 5,794 5,528 1,575 3,953 3,452 1,982 1,032 2,561 2,420 -579 1969 I 10,631 4,521 6,110 4,949 1,272 3,676 3,498 2,184 1,065 2,183 2,433 n 9 688 4 323 5 365 5 365 1 504 3,861 1,960 2,363 1 055 1 764 905 599 in n.a. n.a. n.a. 4,499 1,382 3,117 n.a. 2,008 n.a. 598 n.a. 1,410 Type of issuer Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B o n n o d te s s Stocks & B o n n o d t s es Stocks & B o n n o d te s s Stocks & B o n n o d t s es Stocks & B o n n o d t s es Stocks & B o n n o d t s es 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 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 5,347 1968—lr 991 —60 191 112 170 -26 956 309 295 31 109 1,624 IIr . 1 550 -127 375 371 260 10 818 244 524 33 288 143 Illr 1 210 — 484 716 — 123 300 -62 585 187 491 6 181 1,161 IV 667 -1,171 960 461 257 -71 1,310 152 269 50 491 2 419 1969—I 1,458 -372 360 259 539 75 674 331 405 45 239 2,096 II 936 -386 433 445 175 49 1,445 235 312 78 560 1,083 III 1,087 343 101 274 354 136 898 320 566 31 329 n.a. 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 I Re t d io e n m s p- s N al e e t s Total * po C si a ti s o h n ^ Other Sales > Re t d io e n m s p- s N al e e t s Total 2 po C si a t s i h on' Other 1957 1,391 406 984 8,714 523 8,191 1968—Nov... 688 313 375 54,860 3,413 51,447 1958 1,620 511 ,109 13,242 634 12,608 Dec... 653 319 354 52,677 3,187 49,490 1959 2,280 786 ,494 15,818 860 14,958 1969—Jan.... 876 397 479 53,323 3,831 49,492 1960 2,097 842 ,255 17,026 973 16,053 Feb... 625 379 246 50,512 3,880 46,632 1961 2,951 ,160 ,791 22,789 980 21,809 Mar... 628 285 343 51,663 4,331 47,332 1962 2,699 ,123 ,576 21,271 1,315 19,956 Apr... 654 348 306 52,787 4,579 48,208 May.. 529 364 165 52,992 4,262 48,730 1963 2,460 ,504 952 25,214 1,341 23,873 June. 474 338 136 49,401 3,937 45,464 1964 3,404 ,875 ,528 29,116 1,329 27,787 July... 503 260 243 46,408 4,167 42,241 1965 4,359 ,962 !,395 35,220 1.803 33,417 Aug... 483 208 275 49,072 4,642 44,430 Sept... 442 235 207 48,882 4,393 44,489 1966 4,671 !,005 .,665 34,829 2,971 31,858 Oct.... 564 269 295 50,915 4,572 46,343 1967 4,670 2,745 ,927 44,701 2,566 42,135 Nov... 417 277 140 42,242 4,079 38,163 1968 6,820 ),84I .,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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 48 BUSINESS FINANCE • JANUARY 1970 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1967 1968 1969 < Industry 1964 1965 1966 1967 1968 III IV HI IV Manufacturing Total (177 corps.): Sales 158,253 177,237 77,738 201,399 225,740 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 59,770 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 40,879 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 1,068 1,838 1,871 2,198 1,559 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.S79 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 42,71 43,641 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 2,916 Profits before taxes 829 979 1,094 385 634 92 -13 126 206 116 186 128 220 Profits after taxes 694 815 906 319 568 81 -31 110 175 108 174 98 173 Dividends 440 468 502 538 5V 103 155 116 136 98 166 116 136 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 1,68." 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 1 Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federa] 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. Ail 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n BUSINESS FINANCE A 49 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a f o x o f e r it s e s c ta o In x m e - e s P t a r a f o x te f e i r t s s d C d e i a n v s d i h - s t U r p i r b n o u d f t i i t e s s d - co c a n a t l s l i p o o u i w n t m a - l p- Quarter P b t e r a f o x o f e r it s e s c ta o In x m e - e s P t a r a f o x te f e i r t s s d C d e i a n v s d i h - s t U r p i r b n o u d fi t i t e s s d - co c a n t a l i s l o p o u n i w t m a - l pances! ances 1 1961 50.3 23.1 27.2 13.8 13.5 26.2 1968—1 87.9 39.9 47.9 22.2 25.7 44.8 1962 55.4 24.2 31.2 15.2 16.0 30.1 II.... 90.7 41.1 49.7 22.9 26.7 45 8 1963 59.4 26.3 33.1 16.5 16.6 31.8 III... 91.5 41.4 50.0 23.6 26.5 46.2 1964 66.8 28.3 38.4 17.8 20.6 33.9 IV... 94.5 42.9 51.6 23.8 27.8 46.7 1965 77.8 31.3 46.5 19.8 26.7 36.4 1966 84.2 34.3 49.9 20.8 29.1 39.5 1969—1.... 95.5 43.4 52.2 23.8 28.4 47.7 1967 80.3 33.0 47.3 21.5 25.9 42.6 II.... 95.4 43.6 51.8 24.3 27.5 48.6 1968 91.1 41.3 49.8 23.1 26.7 45.9 III... 92.5 42.3 50.2 24.9 25.4 49.6 1 Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . - I t n o v r e ie n s - Other Total F in e c d o e m ra e l Other ties O U o . v S t . .I Other G U o . v S t . .i Other taxes 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 «49.9 17.0 3.9 190.2 126.9 22.3 229.6 3.1 160.4 19.1 46.9 1966' 188.2 442.6 49.3 15.4 4.5 205.2 143.1 25.1 254.4 4.4 179.0 18.3 52.8 1967' 198.8 463.1 51.4 12.2 5.1 214.6 152.3 27.6 264.3 5.8 186.4 14.6 57.4 1968 Ir . . 204.3 470.9 49.3 14.5 4.8 216.6 155.0 30.7 266.6 6.1 184.7 16.5 59.3 II' 207 8 481 2 50 5 13 0 4 7 223.5 158 3 31.2 273 5 6 2 190 9 14 8 61 5 III' .. . 208.7 491.5 51.9 12.6 4.8 229.4 162.1 30.8 282.7 6.3 196.8 15.1 64.6 IV . 212.4 506.3 55.1 13.7 5.1 235.6 164.6 32.2 293.9 6.4 205.2 16.8 65.4 1969 I' 215.0 515.7 51.9 15.4 4.8 239.8 169.2 34.6 300.8 6.9 206.1 19.1 68.8 II' 216.3 526.7 52.6 13.0 4.8 247.1 174.0 35.3 310.4 7.2 215.3 15.4 72.5 Ill 214.6 536.8 51.2 11.8 4.6 254.7 178.7 35.7 322.2 7.5 222.9 16.4 75.4 1 Receivables from, and payables to, the U.S. Govt. exclude amounts NOTE.—Securities and Exchange Commission estimates; excludes offset against each other on corporations* books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT an billions of dollars) Manufacturing Transportation Total Period Total Durable d N ur o a n b - le Mining Railroad Other u P t u il b it l i i e c s n C i o ca m ti m on u s - Other 1 a ( r n S a n . t u A e a ) . l 1963 39 22 7 85 7 84 1 04 1.10 1.92 5.65 3.79 10.03 (964 44.90 9.43 9.16 14 1.41 2.38 6.22 4.30 10.83 1965 51 96 11 40 11 05 30 1 73 2 81 6 94 4 94 11 79 1966. . 60 63 13 99 13 00 47 1.98 3.44 8.41 5.62 12 74 1967 61.66 13.70 13.00 .42 1.53 3.88 9.88 5.91 12.34 1968 64 08 13 51 12 93 42 1 34 4 31 11 54 6 36 12 67 1969? 71.25 15.34 14.35 .61 1.49 4.29 13.06 7.75 13.34 19702 78.13 15.73 15.85 59 1.60 4.12 15.01 24 23 1968—1 14.25 2.96 2.82 .36 .37 .98 2.33 1.48 2.93 64.75 II 15.86 3.22 3.28 .36 .36 1.04 2.97 1.51 3.11 62.60 Ill 16.02 3.37 3.25 .34 .30 1.12 2.96 1.50 3.18 63.20 IV 17.95 3.95 3.57 .35 .30 1.18 3.28 1.86 3.46 65.90 1969 I 15.21 3.26 2.95 .36 .32 1.06 2.66 1.68 2.91 68.90 H 17.73 3.83 3.52 .41 .35 1.14 3.38 1.86 3.23 70.20 III 18.22 3.86 3.72 .40 .40 .96 3.44 1.96 3.48 72.45 IV2 20.09 4.39 4.16 .44 .42 1.13 3.59 5.96 73.30 1970—12 17.04 3.44 3.44 .40 .39 1.04 3.01 5.32 76.85 < 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT o JANUARY 1970 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses* Multifamily and Mortgage holders2 commercial properties' tvpe« E p n er d io o d f h A e o r l l d s l - F u i t n c i i n i s o a a t n l i n - s - * a U c g i . e e S n s . - v o I i t a d n h n u d e d a i r - l s s h A e o r l l d s l - F u i t n i c n i i s o a a t n l i n - s - ' O h e o t r h l s d e 3 - r h e A o r l l d s l - Total u F i t n in i s o a t n i n - s . 1 O h e o t r h ld s e - r Total tu F i t n i i n s o a t n i n - s . i O h e o t r h l s d er - F w u H V n ri d A A it e e — - r n - t C v io e o n n n - a - l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1964 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 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 38.1 118.7 97.1 21.6 92.8 277.2 1967—II».. 356.2 287.6 16.7 51.9 24.3 8.7 15.6 331.9 227.8 195.3 32.5 104.1 83.6 20.5 85.3 246.6 ra».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 IV. 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968—11"... 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 UP.. 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 Ill" 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 IV. 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—I"... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 II" 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.6 123.4 101.0 22.4 96.6 286.2 III" 418.5 335.5 24.9 58.1 29.3 10.1 19.2 389.2 263.4 222.5 40.9 125.8 102.9 22.9 1 Commercial banks (including nondeposit trust companies but not 5 Derived figures; includes small amounts of farm loans held by savings trust depts.), mutual savings banks, life insurance companies, and savings and loan assns. and loan assns. 6 Data by type of mortgage on nonfarm 1 - to 4-family properties alone 2 U.S. agencies include former FNMA and, beginning fourth quarter are shown on second page following. 1968, new GNMA as well as FHA, VA, PHA, Farmers Home Admin., and in earlier years, RFC, HOLC, and FFMC. They also include U.S. NOTE.—'Based on data from Federal Deposit Insurance Corp., Federal sponsored agencies—new FNMA and Federal land banks. Other agencies Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul- (amounts small or current separate data not readily available) included ture and Commerce, Federal National Mortgage Assn., Federal Housing with "individuals and others." Admin., Public Housing Admin., Veterans Admin., and Comptroller of 3 Derived figures; includes debt held by Federal land banks and farm the Currency. debt held by Farmers Home Admin. Figures for first three quarters of each year are F.R. estimates. 4 For multifamily and total residential properties, see p. A-S2. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings l Mutual savings bank holdings2 Residential Residential End of period Other Other Total non- Farm Total non- Farm FHA- VA- Con- farm FHA- VA- Con- farm Total in- guar- ven- Total in- guar- vensured anteed tional sured anteed tional 1941 4 906 3 292 1,048 566 4 81"> 3,884 900 28 1945 4,7T> 3 395 856 5?1 4,708 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 70? 2,688 21,997 14,377 ?911 44617 40,096 11791 11408 14897 4,469 52 1966 54,180 34,876 7 544 2,599 24,733 16,366 1 118 47 117 42,242 14 500 11 471 16 77? 5.041 53 1967 59,019 37,642 7 709 2,696 27,237 17,931 1 446 50 490 44,641 15 074 11,795 17 77? 5,732 117 1968 65 696 41,433 7 9?6 2,708 30,800 20,505 1 758 51,456 46,748 15 569 1?,011 19,146 6,592 117 1966 IV 54 180 34,876 7 544 2,599 24,733 16,366 1 118 47 117 42,242 14 500 11,471 16,77? 5,041 53 1967 I 54 511 34,890 7 -144 2,547 24,899 16,468 1,171 48 107 42,879 14,771 11,619 16,517 5,176 52 II 55 711 35,487 7 196 2 495 25.596 16,970 1,?74 48 891 43,526 14,947 11,768 16,811 5,316 51 Ill . .. 57 48? 36 639 7 584 2 601 26,454 17,475 1,168 49 71? 44,094 15,016 11,7S5 17,?91 5,526 112 IV .... 59 019 37,642 7 709 2,696 27,,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968 I 60 111 38 157 7 694 2 674 27,789 18,396 1,566 51•>18 45,171 15179 1187'' 18Pft 5 931 116 II 61 967 39,113 7 678 2,648 28,787 19,098 1 756 51 791 45,570 15,746 11 918 18 406 6,108 115 Ill 63 779 40,251 7 768 2,657 29,826 19,771 1 757 57 496 46,051 15 167 11 945 18 719 6,329 116 IV 65 616 41,433 7 9?6 2,708 3O.8OC 20,505 1 758 51 456 46,748 15 569 17 011 19;i46 6,592 117 1969—i 67 146 42,302 7 951 2,711 31,638 20,950 1 894 54 178 47,305 15 678 1? 097 19 510 6,756 117 n . 69 07° 43,532 8 060 2,743 32,729 21,459 4 088 54 844 47,818 15 769 1?;i5i 19 898 6,908 117 HI 70 179 55 159 1 Includes loans held by nondeposit trust companies, but not bank States and possessions. First and third quarters, estimates based on FDIC trust depts. data for insured banks for 1962 and part of 1963 and on special F.R. inter- 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. polations thereafter. For earlier years, the basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from NOTE.—Second and fourth quarters. Federal Deposit Insurance Corpo- the National Assn. of Mutual Savings Banks. ration series for all commercial and mutual savings banks in the United Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n REAL ESTATE CREDIT A 51 MORTGAGE ACTIVITY OF LIFE INSURANCE COMPANIES (In millions of dollars) Loans acquired Loans outstanding (end of period) Nonfarm Nonfarm Period Total Total in F s H ur A e - d a g n V u t A a ee r - d - Other! Farm Total Total in F s H ur A e - d a g n V u t A a e r e - - d Other Farm I945 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 ,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963 9,172 8,306 ,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 [964 10,433 9,386 ,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965 11 137 9,988 ,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966 10 217 9 223 100 467 7,456 994 64,609 59,369 12,351 6.201 40,817 5,240 1967 8 470 7,633 '757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968 7,925 7,153 719 346 6,088 772 69,973 64,172 11,961 5,954 46,257 5,801 1968—Oct r 618 582 85 29 468 36 69,177 63,401 12,001 5,986 45,414 5,776 Nov 623 589 62 29 498 34 69 407 63,627 11 999 5 993 45 635 5 780 Dec 1,207 1,123 84 29 1,010 84 70,071 64,268 12^015 5,982 46,271 5,803 1969—Jan 641 589 59 28 502 52 70,205 64,437 12,003 5,974 46,460 5,768 Feb 558 497 64 29 404 61 70,355 64,584 11,983 5,973 46,628 5,771 Mar 626 541 53 21 467 85 70,480 64,694 11,947 5,943 46,804 5,786 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 47 190 5 827 556 498 55 20 423 58 70,964 65,114 11,882 5,879 47,353 5,850 July 593 557 49 6 502 36 71,079 65,226 11,845 5,819 47,562 5,853 532 495 44 13 438 37 71,250 65,388 11,824 5,799 47,765 5,862 576 553 41 14 498 23 71,429 65,564 11,797 5,775 47,992 5,865 Oct 688 663 47 9 607 25 71,569 65,766 11,777 5,774 48,245 5,803 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 for 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 c - es R m e e p n a ts y- M d e e m po b s e it r s s' Period h N o e m w e Home FHA- VA- Con- Total t S e h r o m r t- 1 t L er o m ng * - Total' con- pur- Total * in- guar- vens t tr io u n c- chase sured anteed tional 1945 278 213 195 176 19 46 1961 2,882 2,220 2,662 1,447 1,216 1,180 1945 1,913 181 1,358 5,376 1 19 9 6 6 3 2 4 5, , 6 1 0 1 1 1 4 3 , , 2 2 9 94 6 4 3 , , 7 4 8 79 4 2 2 , , 0 8 0 6 5 3 1 1, , 9 4 2 7 1 4 1 1 , , 2 15 1 1 3 1961 17,733 5,212 7,317 68,834 4 167 7 152 57,515 1964 . . 5,565 5,025 5,325 2,846 2,479 1,199 1 1 1 9 9 9 6 6 6 3 4 2 . 2 2 2 5 4 1 , , , 9 1 1 1 5 7 3 3 3 7 6 6^ , , 1 6 1 8 3 1 5 8 5 1 1 0 0 8, , ,5 0 6 3 5 5 8 5 0 1 7 9 0 8 0 1 , , ,3 7 9 3 7 4 3 0 4 4 4 4 6 8 7 9 9 6 6 4 7 6 6 0 9 68 1 6 3 0 0 7 8 6 9 9 7, , ,7 2 2 5 8 8 6 8 4 1 1 1 9 9 9 6 6 6 5 7 6 5 3 1 , , ,5 0 8 2 0 0 7 7 4 4 2 4 , , , 3 0 8 3 7 6 5 6 6 5 6 4 , , , 9 9 3 3 9 8 5 7 6 5 3 3 , , , 9 0 0 8 7 0 5 4 6 2 1 , , 9 9 4 2 2 0 9 3 1 1 1 1, , , 4 0 0 3 4 3 2 3 6 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 1 1 19 9 9 6 6 6 8 6 7. 2 2 1 0 1 6 , , , 9 1 9 8 2 2 3 2 4 4 4 3 , , , 9 2 6 1 4 5 6 3 3 11 7 9 6 2 8 0 1 2 4 5 8 1 1 1 2 3 1 1 0 4 8 8 4 0 0 2 5 2 7 5 5 6 7 6 2 9 5 6 1 8 9 6 7 6 0 3 1 5 1 5 1 2 71 1 11 0 0 7 9 3, , , 0 6 1 0 6 3 1 3 2 1968— D N e o c v 3 1 0 5 1 5 1 8 5 1 0 5 5 , , 2 0 5 4 9 0 4 4, , 8 6 6 4 7 3 3 3 9 9 2 7 1 1 , , 3 32 8 1 2 1968—Nov... 1,724 392 868 129 899 6 529 6 919 116,451 1969—J F a e n b 2 1 7 2 7 0 1 1 7 7 8 9 5 5 , , 3 2 5 9 7 8 4 4 , , 9 9 7 4 5 0 3 35 8 8 2 1 1 , , 1 1 3 1 0 0 Dec... 1,886 407 869 130 802 6 658 7 012 117,132 Mar 155 122 5,331 4,983 349 1,243 1969—Jan.... 1,592 348 783 131 424 6 747 7 074 117,603 May!'.'.'.'.'.'. 5 3 4 2 5 7 1 1 1 2 3 0 5 5 , , 9 7 7 6 1 4 5 5 , , 4 6 2 4 3 7 3 34 2 1 4 1 1, , 2 1 0 7 1 8 Feb... 1,580 364 767 132 095 6 857 7 129118,109 June 514 72 6,413 6,054 359 1,276 Mar... 1,870 440 896 133 012 6 972 7 194118,846 July 759 118 7,053 6,564 489 927 Apr... 2,073 485 1023 134 038 7 120 7 271 119,647 Aug 630 139 7,544 6,872 672 '847 May.. 2,146 482 1 113 135 026 7 245 7 354120,427 Sept 451 55 7,940 7,273 667 891 June.. 2,415 495 1 345 136 242 7 402 7 408 121,432 Oct 637 138 8,439 7,779 660 865 July... 1,974 421 1 091 137 107 7 522 7 468 122,117 Nov 552 189 8,802 7,946 856 939 Aug... 1,918 393 1089 137 951 7 607 7 538 122,806 Sept... 1,728 377 936 138 618 7 694 7 570123,354 N O o ct v . . . . . . . 1 1, ,3 6 0 9 7 8 2 36 8 5 2 6 8 5 6 7 2 1 1 3 3 9 9 2 6 2 4 6 8 7 7 , , 7 81 7 3 0 7 7 6 61 0 7 0 1 1 2 2 3 4 , ,2 8 1 5 8 6 1 2 S S e e c c u u r r e e d d o lo r a u n n s s , e a c m ur o e r d t i l z o e a d n s q u m a a rt t e u r r l i y n , g h i a n v i 1 n y g e a m r a o tu r r l i e t s ie s s . of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc., not shown separately. NOTE.—Federal Home Loan Bank Board data. I 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT a JANUARY 1970 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) an billions of dollars) All residential Multifamilyl G un o d v e e r r w nm rit e t n en t- Con- E pe n r d io o d f Total t F u i i n c t n i i s o a a t l i n n - s - h O ol t d h e e r r s Total t F u i i c n t n i i s a o a t l i n n - - s h O ol t d h e e r r s End of period Total Total F su H in re A - d - an g V t u e A a e r d - - 1 ti v o e n n a - l 1 1 1 9 9 9 4 4 6 1 5 3 2 2 2 1 4 4 1 . . . 2 3 2 1 1 1 7 4 5 6 . . . 9 7 7 3 9 8 4 . . . 4 6 5 2 5 5 9 . . . 9 7 0 2 3 3 0 . . . 5 6 7 2 2 8. . . 3 2 2 1 1 1 9 9 9 6 5 6 3 4 4 1 1 1 8 9 8 2 7 . . . 6 2 6 6 6 4 9 5 . . . 3 2 9 3 3 4 5 8 . . . 1 0 3 3 30 0 . . . 2 9 9 1 1 1 1 2 4 6 8 . . . 3 3 3 1964 231.1 195.4 35.7 33.6 25.1 8.5 1965 212.9 73.1 42.0 31.1 139.8 1 1 1 9 9 9 6 6 67 5 6 " 2 2 2 5 6 8 0 4 0 . . . 1 0 0 2 2 2 2 1 3 3 3 6 . . . 7 2 6 4 4 3 0 3 6 . . . 3 4 9 4 4 3 3 0 7 . . . 9 3 2 2 3 3 9 1 4 . . . 5 0 7 9 8 8 . . . 2 8 2 1 1 1 9 9 9 6 6 6 7 8 6 " " . .. 2 2 2 2 3 5 3 6 1 . . . 6 1 2 7 7 8 6 3 9 . . . 1 8 9 4 4 5 4 7 0 . . . 8 4 6 3 3 3 2 3 1 . . . 5 2 3 1 1 1 5 4 6 6 7 7 . . . 1 6 4 1968* 298.6 250.8 47.8 47.3 37.7 9.6 1966—IV 223.6 76.1 44.8 31.3 147.6 1967— I i I n I I I * " " . . . . . . . . . . 2 2 28 6 7 0 9 4 . . . 0 7 8 2 2 2 3 2 3 2 8 6 . . . 5 3 6 4 4 4 2 1 3 . . . 3 4 4 4 4 4 2 1 3 . . . 8 9 9 3 3 3 2 4 3 . . . 9 7 8 9 8 9 . . . 0 9 2 1967 I I I I I " P I* 2 2 2 2 3 2 7 2 4 . . . 8 0 9 7 7 7 7 8 6 . . . 2 3 4 4 4 4 5 5 6 . . . 7 2 6 3 3 3 1 1 1 . . . 5 2 7 1 1 1 5 5 4 0 3 8 . . . 6 7 4 1968—1" 283.7 239.0 44.7 44.6 35.3 9.3 IV" 236.1 79.9 47.4 32.5 156.1 I II I I * !" .. .. . . . 2 2 8 9 8 3 . . 6 3 2 2 4 4 2 6 . . 7 4 4 4 5 6 . . 9 9 4 46 5 . . 2 3 3 3 5 6 . . 9 7 9 9 . . 5 4 1968—I*. . 239.1 81.0 48.1 32.9 158.1 IV*.... 298.6 250.8 47.8 47.3 37.7 9.6 I I I l P l* 2 2 4 4 3 7 . . 2 0 8 8 2 3 . . 1 2 4 49 8 . . 6 7 3 3 3 3 . . 4 6 1 1 6 6 1 3 . . 1 8 1969—1" 303.1 254.4 48.7 48.3 38.4 9.9 IV* 251.2 83.8 50.6 33.2 167.4 I II I I * " .. . . . . . 3 3 0 1 8 4. . 1 9 2 26 5 2 9 . . 7 3 4 51 9 . . 4 6 4 5 9 0 . . 4 6 4 3 0 9 . . 1 3 1 1 0 0 . . 1 5 1969—1* 254.8 85.3 51.4 33.9 169.5 UP 259.5 87.1 52.2 34.9 172.3 Ill* 263.4 i Structures of five or more units. NOTE.—Based on data from same source as for "Mortgage Debt Out- 1 Includes outstanding amount of VA vendee accounts held by private standing" table (second preceding page). investors under repurchase agreement. NOTE.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from Federal Home Loan Bank Board, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In millions of dollars) FHA-insured VA-guaranteed DELINQUENCY RATES ON HOME MORTGAGES Mortgages Mortgages Period Prop- (Per 100 mortgages held or serviced) Pro- erty Total h N om ew es h is o E t m i x n - e g s jects I m p i r e m o n v - ts e z . Totals h N om ew es h is o E t m i x n - e g s Loan b s u n t o d t e l i i n n q fo u r e e n c t l o fo su r— re Loans in fore- End of period closure 1 1 9 9 4 6 5 3 7,2 6 1 6 6 5 1,6 2 6 5 4 7 3,9 2 0 1 5 7 8 2 4 0 3 8 17 0 1 4 3,0 1 4 9 5 2 1,272 1,770 Total 30 days 60 days o 9 r 0 m da o y r s e 1964 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1965 8,689 1,705 5,760 591 634 2,652 876 1,774 1963 3.30 2.32 .60 .38 .34 1966 7,320 1,729 4,366 583 641 2,600 980 1,618 1964 3.21 2.35 .55 .31 .38 1967 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1968 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1965 3.29 2.40 .55 .34 .40 1966 3.40 2.54 .54 .32 .36 1968—Nov.. 749 126 473 101 49 377 138 239 1967 3.47 2.66 .54 .27 .32 Dec.. 702 117 409 118 58 365 136 229 1968 3.17 2.43 .51 .23 .26 1969—Jan... 762 134 474 105 48 369 145 225 1966—1 3.02 2.13 .55 .34 .38 Feb.. 614 106 388 80 39 296 114 182 II 2.95 2.16 .49 .30 .38 Mar.. 642 110 381 100 50 329 122 207 in 3.09 2.25 .52 .32 .36 Apr.. 681 113 428 82 57 301 111 191 3.40 2.54 .54 .32 .36 May. 704 111 409 123 62 323 115 208 IV.... June. 787 121 475 134 58 308 99 209 1967—1 3.04 2.17 .56 .31 .38 July.. 869 140 518 127 85 356 122 234 II 2.85 2.14 .45 .26 .34 Aug.. 791 130 501 92 68 385 126 259 III.... 3.15 2.36 .52 .27 .31 Sept.. 872 148 566 95 63 364 134 230 IV _ 3.47 2.66 .54 .27 .32 Oct... 911 160 553 140 59 397 148 249 Nov.. 705 131 430 90 55 328 125 203 1968—1 2.84 2.11 .49 .24 .32 II 2.89 2.23 .44 .22 .28 Ill 2.93 2.23 .48 .22 .26 1 Monthly figures do not reflect mortgage amendments included in annual IV 3.17 2.43 .51 .23 .26 totals. ^ Not ordinarily secured by mortgages. 1969—1 2.77 2.04 .49 .24 .26 3 Includes a small amount of alteration and repair loans, not shown separ- II 2.68 2.06 .41 .21 .25 ately; only such loans in amounts of more than $1,000 need be secured. ni.... 2.91 2.18 .47 .26 .25 NOTE.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, Nora.—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 conrepayments 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 ° 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 Mortgage Mortgage Mortgage holdings transactions commitments holdings transactions commitments (during (during End of period) End of period) period period FHA- VA- Made Out FHA- VA- Made Out Total in- guar- Pur- during stand- Total in- guar- Pur- during standsured anteed chases Sales period ing sured anteed chases Sales period ing 1965 2,212 1,540 671 156 154 198 332 1965 2,519 1 864 656 757 47 1 189 462 1966 2,667 2,062 604 620 371 491 1966 4,396 3 345 1 051 2 081 1 920 214 1967 3,348 2,756 592 860 1,045 1,171 1967 5,522 4 048 1 474 1 400 12 1,736 501 1968 4,220 3,569 651 1,089 1 867 1,266 1968 7,167 5,121 2,046 1,944 2,697 1,287 1968-Nov.. 4,166 3,511 655 58 57 1,248 1968 Nov.. 7,048 5 045 2 003 132 225 1.236 Dec... 4,220 3,569 651 73 70 ,266 Dec. 7,167 5 121 2 046 146 269 ,287 1969-Jan... 4,255 3,607 648 54 62 ,297 1969-Jan... 7,334 5,227 2,107 193 276 ,283 Feb.. 4,301 3,657 644 63 40 ,296 Feb.. 7,510 5,345 2,165 201 388 ,406 Mar.. 4,328 3,687 641 44 48 ,311 Mar.. 7,689 5,467 2,222 205 372 ,621 Apr... 4,357 3,721 636 50 49 ,312 Apr.. 7 851 5 576 2 276 192 460 .887 May.. 4,395 3,764 631 61 71 ,321 May. 7,998 5 678 2 320 176 532 2! 237 June.. 4,442 3,816 626 70 71 ,322 8,175 5 802 2 373 209 561 2,578 July... 4,493 3,871 622 68 55 ,304 July.. 8,417 5 975 2 442 269 785 3,088 Aug... 4,552 3,935 617 77 33 ,266 Aug.. 8,887 6,304 2,583 497 599 3,181 O N Se c o p t v . t . . . . . . . . . 4 4 4 , , , 6 7 6 8 3 1 0 9 4 4 4 4 , , , 1 0 0 3 0 7 5 1 2 6 6 6 0 0 1 8 4 3 7 8 8 7 0 4 5 3 4 1 9 1 , , , 1 2 2 7 1 3 1 2 7 S O N e c o p t v t . . . . . . . . . 1 9 9 0 , , , 8 3 3 5 2 8 0 6 6 7 6 6 , , 3 9 6 0 5 0 5 0 2 2 2 3 , 0 9 7 8 0 2 1 0 4 5 5 4 5 6 6 4 4 8 7 8 4 1 6 0 3 0 3 3 3 3, , , 4 5 4 6 9 0 5 4 2 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. Mortgage p. ort-f ol-i os o.f f-o r-m er- FNMA and include mortgages sub-j,e-c t- -to- partici,p ation commitments made during the period include some multifamily and nonpool of Government Mortgage Liquidation Trust, but exclude conven- profit hospital loan commitments in addition to 1-4 family loan comtional mortgage loans acquired by former FNMA from the RFC Mortgage mitments accepted in FNMA's free market auction system. Co., the Defense Homes Corp., the Public Housing Admin., and Community Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (Per cent) Primary market Secondary Implicit yield, by market Mortgageamounts commitment period (in months) FHA series FHLBB series Yield Auction Acceptec Period (effective rate) on FHA- date insured New new By commitment New Existing homes homes Offered Total period (inmonths) 3 6 12-18 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 millionsof dollars In percent 1967 6.46 6.52 6.53 6.55 968 6.97 7.03 7.12 7.21 1969 1968 Dec 7.23 7.23 7.40 7.50 Oct. 20 161 6 134 9 35 7 60 8 38.3 8.58 8.63 8 44 1969—Jan 7.30 7.32 7.55 27 120 6 118 4 37 7 52 8 28.0 8.54 8.60 8 45 Feb 7.39 7.42 7.60 7.99 Mar 7.47 7.49 7.65 8.05 Nov. 3 230 2 81 7 31 0 44 1 6.6 8.44 8.49 8 45 Apr 7.62 7.60 7.75 8.06 10 267 4 101 9 45 1 50 6 6.2 8.47 8.49 8 47 May 7.65 7.68 7.75 8.06 17 242 6 122 7 46 0 67 3 10.4 8.50 8.51 8 48 June 7.76 7.79 8.00 8.35 24 233 4 122 3 41 6 67.7 13.0 8.53 8.54 8 50 July 7.91 7.94 8.10 8.36 Aug 8.00 8.05 8.20 8.36 Dec. 1 235.9 120 6 24 2 67 0 29.4 8.57 8.58 8 52 Sept 8.05 8.08 8.25 8.40 8 242 9 123 0 23 2 77 0 22.8 8.62 8.64 8 57 Oct 8.13 8.13 8.30 8.48 15 229.4 121 7 37 1 55.4 29.2 8.67 8.70 8 62 Nov "8.13 »8.13 8.35 8.48 22 307.3 121 8 22 6 68.2 31.0 8.75 8.78 8 69 Dec 8.35 8.62 29 269.3 128 4 20 1 79.0 29.3 8.85 8.87 8 77 1970 NOTE.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices Jan. 5 704.7 122 7 8 4 70.4 43.9 9 19 9.19 9 15 on prevailing local conditions as of the first of the succeeding 12 (150.0) month. Yields on FHA-insured mortgages are derived from weighted averages of private secondary market prices for Sec. 203, 30-year mortgages with minimum downpayment and an NOTE.—Implicit secondary market yields are gross—before deduction of 50assumed prepayment at the end of 15 years. Gaps in the data basis-point fee paid for mortgage servicing. They reflect the average accepted bid are due to periods of adjustment to changes in maximum per- price for Govt.-underwritten mortgages after adjustment by Federal Reserve missible contract interest rates. The FHA series on average to allow for FNMA commitment fees and FNMA stock purchase and holding contract interest rates on conventional first mortgages in primary requirements, assuming a prepayment period of 15 years for 30-year loans. Commarkets are unweighted and are rounded to the nearest 5 basis mitments for 12-18 months are for new homes only. points. The FHLBB effective rate series reflects fees and charges Total accepted shown in parenthesis for most recent week indicates FNMA as well as contract rates (as shown in the table on conventional announced limit before the "auction" date. first mortgage terms, p. A-35) and an assumed prepayment at end of 10 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 CONSUMER CREDIT ° JANUARY 1970 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Total m A pa o u p b t e o il r - e co g O n o s t o u h d m e s r er e a r n R n d i e z p m a a t o i io r d n - Pe lo rs a o n n s al Total p S a l i o y n m a g n l e e s n - t a C cc h o a u r n g t e s S c e r r e v d i i c t e paper loans i I939 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1962 63,821 48,720 19,381 12 627 3 298 13,414 15,101 5,456 5,684 3,961 1963 71,739 55,486 22,254 14 177 3 437 15,618 16,253 6,101 5,903 4,249 1964 80,268 62,692 24,934 16,333 3,577 17,848 17,576 6,874 6,195 4,507 1965 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 1967 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 1968 113,191 89,890 34,130 24,899 3,925 26,936 23,301 9,138 7,755 6,408 1968 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|l38 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 6,748 115,995 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 28,541 22,764 9 120 7,039 6,605 117,380 94,732 36,245 25,467 4,063 28,957 22,648 9,073 6,988 6,587 118,008 95 356 36,321 25,732 4 096 29,207 22,652 9,075 7,005 6,572 Oct 118,515 95 850 36,599 25 855 4 084 29 312 22,665 9 025 7,085 6,555 Nov 119,378 96,478 36,650 26,223 4,076 29,529 22,900 9,000 7,238 6,662 1 Holdings of financial institutions; holdings of retail outlets are in- loans. For back figures and description of the data, see "Consumer Credit," cluded in "other consumer goods paper." Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, NOTE.—Consumer credit estimates coyer 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 Total m b C e a o r n m c k ia - s l fi S n c a o a l s n e . s ce u C n r i e o d n i s t fi s n C u a m o n n c e - e r i Other i Total d m A ea o u l b e t r o il s - e 2 o O r u e t t t h l a e e i t r l s 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—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 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 Aug., 94,732 82,910 39,532 19,265 11,220 9,436 3,457 11,822 336 11,486 Sept. 95,356 83,440 39,793 19,360 11,347 9,450 3,490 11,916 336 11,580 Oct.. 95,850 83,949 40,006 19,569 11,438 9,436 3,500 11,901 338 11,563 Nov. 96,478 84,301 40,047 19,668 11,491 9,532 3,563 12,177 337 11,840 1 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.*' See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 End of period Total ch P a u s r e p - d ape D r irect s g p O u c o a o t m o p n h d - e e e r s r r e l m r t o a n i a n o o i n z d n d a s - - s l P o o a e n r n a - s l End of period Total m A pa o u p b t e o il r - e s g O c u o o t m o n h d - e e s r r m i R o z a a e d n p t e i d a r o n i n r - l s o P o a e n n r a s - l paper loans 1 1 1 9 9 9 4 3 4 1 9 5 1 1 7 7 0 4 2 7 5 6 9 2 4 3 4 6 7 7 6 3 1 1 3 4 7 8 3 8 3 1 1 0 6 1 9 6 4 1 1 1 6 3 1 1 5 0 4 3 3 7 6 1 1 3 2 1 1 1 9 9 9 4 4 3 1 5 9 1 1 , , 1 7 3 9 9 0 7 7 0 1,3 8 1 6 7 6 3 8 4 1 1 2 1 6 4 5 7 2 1 0 5 4 1 8 8 5 6 5 6 6 4 1 1 1 9 9 9 6 6 6 3 4 2 • 2 2 1 2 5 9 , , , 0 0 0 2 0 9 3 5 4 6 7 8 , , , 3 6 1 8 9 8 1 1 4 3 4 4 , , 4 7 1 5 3 0 1 4 2 2 3 3 , , , 2 8 6 1 2 7 3 4 0 2 2 2 , , , 2 3 4 6 7 5 1 7 7 4 4 5 , , , 2 9 5 8 5 4 5 0 2 1 1 1 9 9 9 6 6 6 3 2 4 1 1 13 1 2 , , , 6 4 6 0 0 3 5 5 0 7 7 8 , , , 2 2 9 5 8 2 1 5 2 2 2 3 , , , 4 6 0 6 9 2 5 9 2 2 2 2 1 0 1 3 7 4 2 1 1 , , , 0 7 4 9 9 7 1 5 6 1965 28,962 10,209 5,659 4,166 2,571 6,357 1965 15,279 9,068 3,556 185 2,470 1 1 1 9 9 9 6 6 6 6 7 8 3 3 3 2 1 6 , , 3 9 7 1 5 0 9 2 0 1 1 1 0 2 1 , , 2 9 0 1 2 2 3 7 4 5 6 7 ,1 2 9 0 6 5 5 7 6 4 5 6 , , 6 0 1 8 6 2 1 0 6 2 2 2 ,7 6 6 1 4 2 9 7 9 7 7 8 ,8 0 7 5 1 5 5 1 1 1 1 1 9 9 9 6 6 6 7 6 8 1 1 1 6 6 8 , , , 6 8 2 9 3 1 7 8 9 9 9 9 , , , 5 2 9 7 5 8 2 2 6 4 4 4 , , , 5 2 8 1 5 4 8 6 9 1 1 7 5 1 4 1 4 2 2 3 , , , 7 9 3 1 1 5 8 0 4 1968 D N e o c v 3 3 6 6 , , 5 9 6 5 0 2 1 12 2 , , 2 1 1 9 3 0 7 7, , 1 0 0 6 5 3 5 6 , , 8 0 5 6 5 0 2 2, , 7 7 1 2 9 3 8 8, , 8 7 5 2 5 9 1968— D N e o c. v. 1 1 7 8 , , 9 2 6 1 0 9 9 9 , , 8 9 9 8 8 6 4 4 , , 7 8 7 4 8 9 7 7 4 4 3 3 , , 2 3 1 1 0 0 1969 N A J S O J F M M u a e e p o c p a n a l b t v r y y r t . . . 3 3 3 3 3 3 3 3 4 3 4 7 7 7 7 8 9 9 8 0 9 0 , , , , , , , , 0 2 0 9 8 0 7 0 2 3 5 0 5 1 5 5 0 9 4 4 4 3 5 7 6 6 4 6 3 7 8 7 2 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , 3 7 1 1 8 2 9 8 5 8 8 8 2 6 5 8 2 4 1 6 5 1 8 7 0 3 3 4 1 4 4 9 4 7 7 7 7 7 7 7 7 7 7 7 , , , , , , , , , , , 1 1 1 5 5 2 3 4 5 6 5 1 0 0 6 1 7 6 5 1 9 4 7 8 1 8 3 7 3 8 7 7 3 6 6 6 6 6 6 7 6 6 6 7 , , , , , , , , , , , 1 1 1 5 2 8 0 4 1 7 9 3 6 8 1 5 9 0 2 0 0 2 5 8 8 8 0 7 9 3 9 6 9 2 2 2 2 2 2 2 2 2 2 2 , , , , , , , , , , , 7 7 7 6 7 6 6 7 6 8 7 2 6 8 7 9 7 9 8 9 0 7 1 3 7 6 8 0 0 0 2 8 9 9 9 9 8 8 9 9 9 9 9 9 , , , , , , , , , , 0 6 6 9 5 3 4 4 6 9 2 1 1 1 0 6 5 4 4 7 4 0 0 2 2 7 7 5 9 4 4 2 4 1969— F J M J S O N M A J u e u e a o u c b a a p n l n t v . y g r y . t e . . . . . . . . . 1 1 1 1 1 1 1 1 1 1 1 8 9 8 8 9 8 9 8 8 9 9 , , , , , , , , , , , 1 9 4 2 1 2 5 2 6 6 3 6 7 1 6 2 1 6 5 3 6 6 1 5 8 5 7 9 9 3 6 8 0 1 1 1 1 1 1 1 1 9 9 9 0 0 0 0 0 0 0 0 , , , , , , , , , , , 9 9 9 5 0 7 6 2 4 5 5 5 3 9 8 9 4 4 7 2 6 5 1 8 5 3 8 6 0 0 7 2 7 4 4 4 4 4 5 5 5 5 5 5 , , , , , , , , , , , 1 0 1 2 8 8 8 8 0 9 2 9 3 8 2 5 6 9 6 3 4 4 1 9 8 7 7 7 6 8 5 9 7 7 7 7 7 7 7 6 6 6 6 6 1 1 0 0 0 0 9 7 6 9 9 3 3 3 3 3 3 3 3 3 3 3 , , , , , , , , , , , 6 4 5 3 4 3 4 5 2 3 3 2 3 1 1 5 8 8 2 4 9 7 1 8 9 2 7 7 2 7 3 6 6 See NOTE to first table on previous page. See NOTE to first table on previous page. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL INSTITUTIONS (In millions of dollars) (In millions of dollars) Single- Other Repair payment Charge accounts Auto- con- and Per- loans End of period Total mobile sumer modern- sonal paper goods ization loans Total Service paper loans End of period Com- Other credit mer- finan- Retail Credit cial cial outlets cards * 1939 789 81 24 15 669 banks insti- 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 1 1 9 96 6 3 4 1 1 3 5 , , 1 1 6 9 6 9 2 2, , 8 4 9 9 5 8 1,1 9 7 4 6 9 9 8 1 4 3 6 1 8 0 , , 8 21 7 5 3 1 1 9 9 4 4 1 5 3 3 , , 0 2 8 0 7 3 6 6 9 7 3 4 1 7 5 2 2 1 1 , , 6 6 4 1 5 2 5 8 9 4 7 5 1965 17,292 3,368 ,367 972 11,585 1962 15 101 4 690 766 5,179 505 3 961 1 19 9 6 6 7 6 1 1 8 9 , , 7 9 0 5 8 2 3 3, , 9 7 9 2 3 7 , , 6 5 0 0 0 3 1 1 , , 0 0 2 4 0 6 1 13 2 ^ ,4 3 5 1 8 3 1 1 9 96 6 3 4 1 1 6 7 , , 2 5 5 7 3 6 5 5 , , 2 9 0 5 5 0 9 8 2 9 4 6 5 5, , 5 3 8 4 7 4 5 60 5 8 9 4 4 , , 2 50 4 7 9 1968 22,286 4,506 ,877 1,132 14,771 1965 . . 18 990 6 690 QD1 5,724 706 4 889 1968—Nov. 21,926 4,455 ,847 1,134 14,490 1966 20,004 6,946 ,026 5,812 874 5,346 Dec. 22,286 4,506 ,877 1,132 14,771 1 1 9 9 6 6 7 8 2 23 1 ', , 2 30 0 1 6 7 7^ ,3 9 4 7 0 5 * 0 1 8 6 8 3 5 6 , , 9 4 3 5 9 0 1 1, 3 0 0 2 5 9 5 6* ,8 4 1 0 0 8 1969—Jan.. 22,180 4,475 ,877 1,123 14,705 Feb. 22,302 4,502 ,885 1,128 14,787 1968—Nov.... 22,082 7,857 ,167 5,670 1,294 6,094 Mar. 22,496 4,562 ,904 ,134 14,896 Dec... 23,301 7,975 ,163 6,450 1,305 6,408 A M p a r y . 2 2 2 3 , , 7 1 9 7 0 2 4 4, , 7 6 4 5 7 2 , , 9 9 2 5 8 6 , , 1 1 4 7 3 4 1 15 5 , , 2 0 9 6 5 7 1969—Jan.... 22,625 7,878 ,160 5,763 ,334 6,490 June 23,511 4,847 ,994 ,189 15,481 Feb.... 22,189 7,877 ,173 5,087 ,316 6,736 July. 23,755 4,893 2,007 ,189 15,666 Mar.... 22,278 7,961 ,178 5,037 ,303 6,799 Aug. 24,113 4,967 2,024 ,207 15,915 Apr 22,568 8,040 ,176 5,237 ,320 6,795 S O N e o c p t v t . . . . 2 2 2 4 4 4 , , , 3 5 2 7 8 8 4 6 7 5 5 5 , , , 0 0 02 5 8 1 7 5 2 2 2 , , , 0 0 0 4 3 3 2 6 2 , , , 2 2 2 1 3 1 9 1 9 1 1 1 6 6 6 , , , 0 2 0 5 3 1 6 4 5 J J M u u a n ly y e . . . . . . . . . 2 2 2 2 2 2 , , , 9 9 7 0 3 6 8 7 4 7 8 8 , , , 0 0 9 3 1 4 1 7 6 , , , 2 1 1 0 9 7 1 6 4 5 5 5 , , , 5 6 5 4 0 7 1 9 4 , , , 4 3 4 2 6 9 8 2 8 6 6 6, , , 6 7 6 0 4 7 5 8 9 Aug.... 22,648 7,879 ,194 5,438 ,550 6,587 Sept... 22,652 7,882 ,193 5,448 ,557 6,572 NOTE.—Institutions represented are consumer financec ompanies, credit Oct.... 22,665 7,837 ,188 5,568 ,517 6,555 unions, industrial loan companies, mutual savings banks, savings and Nov.... 22,900 7,795 ,205 5,685 ,553 6,662 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 hotneheatlng-oil accounts. Bank credit card accounts outstanding are included in estimates of instalment credit outstanding. See also NOTE to first table on previous page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT a JANUARY 1970 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a ir ti o a n n d loans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1962 56,191 19,694 15,701 2,084 18,710 1963 63,591 22,126 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 Nov 8 288 8,166 2 681 2 546 2 640 2 739 191 190 2 776 2 691 Dec. 8,277 9,568 2,592 2,489 2,656 3,608 192 163 2,837 3,308 1969 Jan 8,371 7,557 2,661 2,369 2,654 2,449 179 137 2,877 2,602 Feb 8,414 6,971 2,716 2,344 2,598 1,985 201 149 2,899 2,493 Mar 8 381 8,132 2 730 2 750 2 625 2 423 198 179 2 828 2 780 Apr 8 720 9,024 2 772 3 023 2,763 2,668 219 216 2 966 3 117 Mav 8,680 8,960 2,757 2,985 2,767 2,760 209 246 2,947 2,969 8 705 9,169 2 725 3 045 2,869 2 832 218 245 2 893 3 047 July 8,521 8,920 2,582 2,828 2,777 2,778 185 214 2,977 3,100 8,680 8,604 2,634 2,593 2,819 2,764 177 206 3,050 3,041 8,669 8,485 2,794 2,566 2,740 2,794 180 194 2,955 2,931 Oct . 8 661 8,797 2 808 2 939 2 707 2 805 175 183 2 971 2 870 Nov 8,632 8,173 2,683 2,433 2,841 2,817 164 160 2,944 2,763 Repayments 1962 51,360 17,447 14,935 2,010 16,969 1963 56 825 19,254 16,369 2,046 19,156 1964 63,470 21,369 18,666 2,086 21,349 1965 ' 69,957 23,543 20,518 2,116 23,780 1966 76,120 25,404 23 178 2,110 25,428 1967 81,306 26^499 25,535 2,142 27,130 1968 88,089 28 018 28,089 2,132 29 850 1968 Nov 7 454 7,271 2,363 2,319 2,388 2,319 175 169 2 528 2 464 Dec 7,502 7,631 2,357 2,284 2,422 2,377 175 169 2,548 2,801 1969—Jan 7,730 7,955 2,467 2,486 2,442 2,666 173 176 2,648 2,627 Feb 7 616 7 083 2 468 2 304 2 352 2 263 172 160 2 624 2 356 Mar 7 735 7,840 2,501 2,541 2,461 2,521 180 180 2 593 2 598 7,960 8,033 2,519 2,552 2,569 2,575 185 187 2,687 2 719 7,834 7,810 2,488 2,488 2,507 2,523 183 185 2,656 2,614 7,910 7,895 2,460 2,471 2,602 2,512 183 187 2,665 2,725 July 7 899 8,174 2,471 2,551 2 511 2 562 191 197 2 726 2 864 Aug 8 080 7,705 2,562 2 429 2,574 2,469 185 182 2 759 2 625 7,971 7,861 2,498 2,490 2,600 2,529 156 161 2,717 2,681 Oct 7,992 8,303 2,463 2,661 2,615 2,682 189 195 2,725 2,765 Nov. 8,012 7,545 2,503 2,382 2,623 2,449 179 168 2,707 2,546 Net change in credit outstanding 2 1962 4,831 2,247 766 74 1,741 1963 6 766 2 872 140 2,203 1964 7 200 2,677 ! •$ 139 2,229 1965 8,629 3,684 2,232 150 2,563 1966 6,215 1,937 2,413 90 1,775 1967 3,387 168 1,417 -29 1,831 1968 8,964 3,406 2,504 136 2,918 1968 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 61 291 355 795 1,274 265 574 267 320 35 58 228 322 July 622 746 111 277 266 216 -6 17 251 236 600 899 72 164 245 295 -8 24 291 416 698 624 296 76 140 265 24 33 238 250 Oct 669 494 345 278 92 123 -14 — 12 246 105 Nov 620 628 180 51 218 368 -15 -8 237 217 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 loans, Statistics, 1965, and pp. 983-1003 of the BULLETIN for Dec. 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 ° 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 f a in n a i n es ce Ot i h n e st r i t f u in ti a on n s cial Retail outlets Period S.A.I N.S.A. S.A.I N.S.A. S.A.1 N.S.A. S.A.I N.S.A. S.A.I N.S.A. Extensions 1962 56,191 20,474 11,269 14,787 9,659 1963 63,591 23 344 12,152 16,768 11,327 1964 70,670 25,950 12,613 18,797 13,310 1965 78,586 29,528 13,722 20,906 14,430 1966 82,335 30,073 14,278 21,490 16,494 1967 84,693 30,850 13,833 22,574 17,436 1968 97,053 36,332 15,909 25,777 19,035 1968—Nov.. 8,288 8,166 3,111 2,877 ,411 1,368 2,139 2,139 ,627 1,782 Dec. 8,277 9,568 3,139 3,094 ,362 1,535 2,208 2,571 ,568 2,368 1969—Jan.. 8,371 7,557 3,135 2,908 ,381 1,227 2,250 1,977 ,605 1,445 Feb.. 8,414 6,971 3,155 2,728 ,419 1,192 2,315 1,972 ,525 1,079 Mar- 8,381 8,132 3,199 3,155 ,429 1,359 2,239 2,219 ,514 1,399 Apr.. 8,720 9,024 3,318 3,585 ,405 1,463 2,378 2,447 ,619 1,529 May. 8,680 8,960 3,236 3,436 ,451 1,478 2,365 2,428 ,628 1,618 June. 8,705 9,169 3,272 3,540 ,436 1,566 2,323 2,479 ,674 1,584 July. 8,521 8,920 3,041 3,323 400 1,507 2,439 2,539 ,641 1,551 Aug.. 8,680 8,604 3,148 3,162 ,431 1,401 2,470 2,463 ,631 1,578 Sept.. 8,669 8,485 3,292 3,203 ,440 1,396 2,332 2,280 ,605 1,606 Oct.. 8,661 8,797 3,298 3,346 ,518 1,603 2,341 2,267 ,504 1,581 Nov.. 8,632 8,173 3,213 2,845 1,490 1,381 2,291 2,217 1,638 1,730 Repayments 1962 51,360 18,468 10,200 13,455 9,237 1963 56,825 20,326 10,927 15,070 10,502 1964 63,470 22,971 11,638 16,764 12,097 1965 69,957 25,663 12,048 18,813 13,433 1966 76,120 27,716 12,860 20,074 15,470 1967 81,306 29,469 13,692 21,330 16,815 1968 88,089 32,080 14,528 23,443 18,038 1968—Nov.. 7,454 7,271 2,769 2,669 ,254 ,231 1,950 1,909 1,481 ,462 Dec. 7,502 7,631 2,761 2,702 ,215 ,276 2,019 2,211 1,507 ,442 1969—Jan.. 7,730 7,955 2,812 2,855 ,282 ,271 2,082 2,083 1,554 ,746 Feb.. 7,616 7,083 2,869 2,677 ,231 ,148 2,066 1,850 1,450 ,408 Mar.. 7,735 7,840 2,928 2,954 ,287 ,325 2,011 2,025 1,509 ,536 Apr.. 7,960 8,033 2,967 2,988 ,236 ,298 2,140 2,153 1,617 ,594 May. 7,834 7,810 2,917 2,943 ,278 ,260 2,091 2,046 1,548 ,561 June. 7,910 7,895 2,989 2,971 ,223 ,241 2,079 2,140 1,619 ,543 July. 7,899 8,174 2,859 2,991 ,330 ,341 2,181 2,295 1,529 ,547 Aug.. 8,080 7,705 2,958 2,878 ,386 ,263 2,228 2,105 1,508 ,459 O N Se o c p t v t . . . . . . 7 7 8 , , , 9 0 9 7 1 9 1 2 2 8 7 7 , , , 3 5 86 0 4 1 3 5 2 2 3 , , , 9 9 0 1 8 2 9 6 0 3 2 2 , , , 1 8 9 3 0 4 3 4 2 , , , 3 3 3 5 4 2 5 6 4 , , , 3 3 2 0 9 8 1 4 2 2 2 2, , , 1 1 1 1 4 3 7 8 3 2 2 2 , , , 1 0 1 8 0 0 0 6 5 1 1 1 , , , 5 5 5 2 3 6 9 4 4 , , , 4 5 5 9 5 1 6 4 2 Net change in credit outstanding 2 1962 4,831 1,997 1,078 1,332 422 1963 6,766 3,018 1,225 1,698 825 1964 7,200 3,065 975 2,033 1,127 1965 8,629 3,865 1,674 2,093 997 1966 6,215 2,357 1,418 1,416 1,024 1967 3,387 1,381 141 1,244 621 1968 8,964 4,252 1,381 2,334 997 1968—Nov.. 834 895 342 208 157 137 189 230 146 320 Dec. 775 1,937 378 392 147 259 189 360 61 926 1969—Jan... 641 -398 323 53 99 -44 168 -106 51 -301 Feb... 798 -112 286 51 188 44 249 122 75 -329 Mar.. 646 292 271 201 142 34 228 194 5 -137 Apr... 760 991 351 597 169 165 238 294 2 -65 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 Aug... 600 899 190 284 45 138 242 358 123 119 Sept.. 698 624 373 261 85 95 199 174 41 94 Oct... 669 494 312 213 194 209 193 87 -30 -15 Nov.. 620 628 193 41 144 99 174 212 109 276 1 Includes adjustments for differences in trading days. tween extensions and repayments for some particular holders do - 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: S.A. • JANUARY 1970 MARKET GROUPINGS (1957-59= 100) Grouping 19 p p 5 r o 7 o r - - - 59 a 1 v 9 e 6 r 8 - 1968 1969 tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.' Sept.' Oct.' Nov. Total index 100.00 165.5 167.5 168.7 169.1 170.1 171.4 171.7 172.5 173. 174.6 174.3 173.9 173.1 171.4 Final products, total 47.35 165.1 167.9 168.1 168.2 169.3 170.8 170.2 170.0 170. 172.8 172. 172.^ 170. 168.0 Consumer goods 32.31 156.9 159.2 160.1 161.0 161.7 162.8 161.8 160.7 161.5 164.4 164.2 162.8 160.8 159.6 Equipment, including defense 15.04 182.6 186.5 185.3 183.5 185.5 187.8 188.4 190.0 190.4 190.8 190.3 192. 191.8 185.9 Materials 52.65 165.8 167.6 169.3 169.6 170.8 172.1 172.9 174.5 176.3 176.5 175.9 176.0 175.9 174.6 Consumer goods Automotive products 3.21 174.3 181.2 177.8 176.2 174.7 175.4 166.1 165.8 178. 184.6 179.5 176.6 172.8 167.5 Autos 1.82 174.8 180.6 174.5 170.6 165.0 165.0 149.6 148.9 168.3 178.7 178.4 169.9 164.0 153.8 Auto parts and allied products 1.39 173.8 182.1 182.2 183.5 187.6 189.0 187.9 188.0 192.3 192.4 181.0 185.4 184.4 185.6 Home goods and apparel 10.00 156.0 158.6 157.6 160.8 160.5 162.8 161.5 161.9 759.7 160.8 159.3 156. 155.9 150.0 Home goods 4.59 175.4 178.3 180.0 184.3 183.0 186.3 186.1 185.9 186.1 184.4 184.5 181.2 179.5 167.7 Appliances, TV, and radios 1.81 168.4 171.9 173.2 177.7 179.1 182.9 182.0 182.0 180.2 181.8 181.9 176.5 174.9 144.3 Appliances 1.33 174.1 177.2 181.7 186.9 187.3 189.4 190.1 192.7 190.7 195.6 195.0 188.2 186.8 150.8 TV and home radios .47 152.4 156.9 149.4 151.5 156.0 164.4 158.9 151.9 150.6 143.0 144.9 143.6 141.3 126.2 Furniture and rugs 1.26 173.7 177.0 180.2 184.3 181.2 182.0 183.3 183.4 184.0 180.0 179.7 177.9 176.0 176.2 Miscellaneous home goods 1.52 185.3 187.0 187.9 192.2 189.0 193.8 193.4 192.6 194.8 191.1 191.6 189.4 188.0 188.5 Apparel, knit goods, and shoes 5.41 139.5 142.0 138.7 140.8 141.4 142.9 140.6 141.5 137.4 140.9 138.0 135.9 135.9 Consumer staples 19.10 154.5 155.S 158.4 158.6 160.2 160.8 161.2 159.2 159.6 162.9 164.1 163.7 161.4 163.3 Processed foods 8.43 132.6 132.0 134.7 134.8 136.7 136.4 137.1 136.4 136.1 135.3 138.8 137.9 132.3 136.2 Beverages and tobacco 2.43 144.5 142.3 145.4 144.6 147.5 150.9 143.7 137.9 140.4 147.8 152.3 152.6 148.9 Drugs, soap, and toiletries 2.97 193.4 200.4 201.4 203.7 203.7 205.0 209.9 208.0 206.1 211.9 207. 208.6 210.4 212.5 Newspapers, magazines, and books. 1.47 143.3 146.0 147.1 146.3 145.7 143.3 145.9 147.3 146.3 147.5 147.6 149.8 147.1 148.8 Consumer fuel and lighting 3.67 183.4 186. 190.2 190.0 192.0 193.6 194.1 189.8 192.7 201.6 201. 198.6 201.6 Fuel oil and gasoline 1.20 139.0 140.6 141.3 129.9 139.6 141.6 142.4 143.9 146.8 146.1 144.4 146.1 150.9 152.0 Re E si l d ec e t n r t i i c a i l t y utilities 2 1 . . 4 7 6 2 2 2 0 2 5 3 . . 1 9 2 2 0 2 8 8 . . 3 0 2 2 3 1 5 4 . . 7 0 2 2 1 4 9 2 . . 3 8 2 2 1 3 7 9 . . 6 9 2 2 4 1 0 8 . . 6 9 2 2 1 4 9 0 . . 3 6 2 23 1 0 2 . . 0 2 2 2 1 3 5 3 . . 1 7 2 2 2 5 8 2 . . 7 6 2 2 2 5 8 2 . . 7 2 2 2 4 2 5 4 . . 3 2 2 2 4 2 8 6. . 4 0 Gas .74 174.1 Equipment Business equipment 11.63 184.7 191.2 191.1 191.4 191.9 192.9 194.1 195.7 197.0 196.9 197.0 200.4 200.8 194.6 Industrial equipment 6.85 168.2 174.0 174.9 175.9 175.7 176.7 178.6 180.9 182.7 181.2 180.3 183.9 182.9 175.0 Commercial equipment 2.42 205.2 208.7 205.3 209.9 214.3 217.3 220.1 221.7 221.0 220.5 221.3 222.9 224.9 222.0 Freight and passenger equipment. 1.76 234.3 247.4 247.2 245.5 244.4 242.3 239.7 238.4 240.8 250.5 249.7 251.9 254.4 254.1 Farm equipment .61 145.0 152.4 134.0 136.1 133.0 135.6 133.9 134.9 135.2 124.4 136.0 146.8 151.0 Defense equipment 3.41 Materials Durable goods materials.. 26.73 157.8 157.6 159.7 161.2 162.6 164.0 165.8 165.5 167.0 167.0 167.3 166.6 165.8 163.1 Consumer durable 3.43 164.2 169.6 161.0 162.2 167.7 163.2 157.9 156.6 162.7 163.0 169.5 171.7 166.4 158.3 C E M q o e n u ta s ip t l r m m u e c a n t t i t o er n ials n.e.c 9 7 6 . . . 1 2 8 7 9 4 1 1 1 8 4 3 5 5 7 . . . 7 9 1 1 1 3 4 8 1 8 7 . . . 8 3 7 1 1 1 4 8 5 0 7 2 . . . 5 5 2 1 1 1 4 5 8 3 4 7 . . . 5 6 4 1 1 1 5 5 8 0 4 9 . . . 2 2 3 1 1 1 5 9 5 4 0 3 . . . 5 7 3 1 1 15 5 9 1 3 0 . . . 5 2 3 1 1 1 4 9 5 1 8 3 . . . 7 0 4 1 1 1 5 5 9 1 3 3 . . . 7 6 2 1 1 1 5 9 5 0 3 6 . . . 0 2 2 1 1 1 9 4 5 5 9 3 . . . 1 5 9 1 1 14 4 9 9 9 7 . . . 3 8 2 1 1 15 4 9 3 9 4 . . . 3 7 8 1 1 1 5 4 9 6 9 0 . . . 1 9 3 Nondurable materials 25.92 174.1 177.9 179.2 178.3 179.2 180.3 180.3 183.7 185.9 186.4 184.7 185.5 186.3 186.5 Business supplies 9.11 157.6 161.7 163.2 164.2 164.4 165.3 162.3 165.9 166.3 167.1 167.4 167.0 168.5 169.1 Containers 3.03 156.6 161.5 164.8 167.4 168.1 170.4 165.0 168.2 167.5 165.5 166.7 167.8 172.8 172.2 General business supplies. 6.07 158.1 161.8 162.4 162.6 162.5 162.7 160.9 164.7 165.7 167.9 167.8 166.6 166.4 167.5 Nondurable materials n.e.c. 7.40 222.4 230.3 233.6 229.3 231.6 232.7 232.3 236.6 239.4 241.6 238.2 240.2 241.0 241.3 Business fuel and power 9.41 152.0 152.5 151.9 151.8 152.3 153.7 156.9 159.3 162.8 161.6 159.4 159.8 160.4 160.4 Mineral fuels 6.07 133.0 131.4 130.0 127.8 127.7 130.2 134.2 137.4 141.8 139.7 136.5 137.7 135.7 136.1 Nonresidential utilities 2.86 200.2 205.7 206.7 211.5 212.5 211.7 213.7 214.9 216.1 216.7 217.3 221. 222.8 Electricity 2.32 202.3 207.1 208.1 213.7 214.8 214.7 216.7 218.1 220.0 220.5 221.1 225.8 227.8 General industrial 1.03 197.4 202.0 204.2 206.2 209,2 208.3 212.4 213.4 216.4 216.7 219.2 221.4 224.7 Commercial and other.. 1.21 216.6 222.0 222.2 231.2 230.7 231.2 231.7 233.4 234.7 235.6 234.7 241.7 242.7 Gas .54 174 Supplementary groups of consumer goods Automotive and home goods 7.80 175.0 179.5 179.1 181.0 179.6 181.8 177.9 177.6! 183.0 184.5 182.4 179.3 176.8 167.6 Apparel and staples 24.51 151.2 152.8 154.1 154.7 156.0 156.8, 156.6 155.31 154.7 158.1 158.4 157.6 155.8 For note see page A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1957-59 = 100) Grouping 19 p p t 5 i r o o 7 o r n - - - 59 a 1 a v 9 g e 6 e r 8 - Nov 1 . 968 Dec. Jan. Feb. Mar. Apr. May J 1 u 96 n 9 e July Aug. Sept.' Oct.' Nov.' Total index 100.00 165.5 167.5 168.7 169.1 170. 171.4 171.7 172.5 173.7 174.6 174.3 173.9 173.1 171.4 Manufacturing, total 86.45 166.9 169. 170.2 170.2 171.8 173.1 173.0 173.8 174.8 175.6 175.4 175.2 174.1 171.9 Durable 48.07 169.8 171.3 172.4 173.0 174.5 175.9 175.7 176.7 178.3 178.7 178.8 178.7 177.3 172.5 Nondurable 38.38 163.3 166.3 167.4 166.7 168.3 169.5 169.6 170.3 170.5 171.8 171.3 170.9 170.1 171.1 Mining 8.23 126.6 126.4 127.4 125.8 124.8 126.7 128.8 130.3 134.4 133.2 131.2 131.6 130.2 132.0 Utilities 5.32 202.5 206.9 210.1 215.1 214.9 215.1 216.3 213.6 215.6 222.2 222.6 222.5 224.4 224.9 Durable manufactures Primary and fabricated metals 12.32 150.5 148.6 152.9 155.6 158.4 160.3 161. 162.3 165.1 164.1 164.1 162.3 163.1 163.4 Primary metals 6.95 137.0 129.3 135.4 139.5 143.6 146.2 147.9 149.3 153.1 152.4 151.3 149.3 150.4 151.1 Iron and steel 5.45 130.7 115.8 124.6 126.8 133.7 139.0 141.2 141.6 145.6 145.3 141.1 141.4 141.5 143.8 Nonferrous metals and products. 1.50 160.0 173.8 180.7 179.6 183.4 186.9 186.2 184.3 190.8 181.8 177.9 178.6 178.5 179.7 Fabricated metal products 5.37 167.9 173.5 175.6 176.4 177.6 178.5 178.3 179.2 180.6 179.1 180.6 179.1 179.5 179.2 Structural metal parts 2.86 162.2 168.3 170.3 170. 174.5 175.8 174.4 173.1 173.8 170.8 171.5 171.5 172.5 174.4 Machinery and related products... 27.98 183.7 186.2 185.6 185.2 186.3 187.9 187.4 188.4 190.3 192.3 192.0 192.7 190.0 181.6 Machinery 14.80 184.3 187.4 188.6 191.8 192.7 194.7 194.6 196.9 197.2 198.1 199.4 201.2 198.9 188.2 Nonelectrical machinery 8.43 181.0 184.4 185.3 188.3 189.6 190.2 190.8 193. 195.3 196.0 195.5 199.8 200.2 195.8 Electrical machinery 6.37 188.5 191.4 193.0 196.4 196.9 200.7 199.5 201.8 199.6 200.8 204.5 202.9 197.2 178.1 Transportation equipment 10.19 179.5 180.2 176.4 171.2 173.1 174.1 172.4 171.8 176.6 181. 179.1 178.8 175.5 168.2 Motor vehicles and parts 4.68 171.4 177.7 172.3 167.3 167.7 167.6 160.8 156.8 169. 174.2 174.1 170.5 167.9 159.8 Ins A tr ir u c m ra e f n t t a s n a d n d o t r h e e la r te e d q u p i r p o m d e u n ct t s .. . 5 1 . .7 2 1 6 1 18 8 4 5 . . 2 0 1 18 7 8 9 . . 5 6 1 18 7 9 7 . . 7 0 1 19 7 1 0 . . 6 9 1 1 7 9 4 0 . . 1 4 1 19 7 2 6 . . 8 0 1 1 7 9 8 5 . . 7 4 1 1 9 8 5 0 . . 3 8 1 19 7 5 9 . . 7 5 1 19 8 4 3 . .4 7 1 1 9 8 4 0 . . 9 3 1 1 9 8 5 2 . . 4 6 1 1 7 9 9 3 . . 6 9 1 1 9 7 4 1 . . 9 9 Ordnance and accessories 1.28 Clay, glass, and lumber 4.72 137.4 141.5 144.3 143.8 145.6 145.1 143.2 143.6 140.6 138.3 140.2 140.6 140.6 141.0 Clay, glass, and stone products. 2.99 146.2 150.4 151.2 156.2 156.5 153.4 155.1 156.9 155.2 152.7 155.3 157.7 156.2 156.6 Lumber and products 1.73 122.3 126.1 132.3 122.5 126.7 130.8 122.6 120.7 115.5 113.4 114.1 111.0 113.8 Furniture and miscellaneous.. 3.05 169.9 172.2 174.2 176.6 175.7 176.5 178.4 179.0 179.1 176.3 176.2 175.4 174.7 175.2 Furniture and fixtures 1.54 178.3 181.7 182.9 186.8 186.5 187.0 188.9 190.2 189.9 185.0 186.5 185.3 184.0 183.9 Miscellaneous manufactures. 1.51 161.4 162.5 165.3 166.2 164.7 165.7 167.6 167.5 168.1 167.4 165.8 165.3 165.3 166.4 Nondurable manufactures Textiles, apparel, and leather 7.60 144.8 147.5 145.0 143.6 142.6 144.7 143.7 146.3 146.0 145.4 143.3 141.1 141.7 141.3 Textile mill products 2.90 151.5 155.1 153.5 152.9 152.0 152.9 154.2 156.5 157.8 157.0 153.0 151.6 152.3 151.9 Apparel products 3.59 149.9 152.5 149.2 148.1 147.9 150.2 147.8 150.0 149.2 150.7 148.8 146.1 145.8 Leather and products 1.11 111.0 111.7 109.2 105.0 101.3 105.6 103.4 107.6 104.7 98.4 100.0 97.7 101.1 Paper and printing 8.17 155.5 159.8 159.7 160.2 161.2 162.2 162.4 163.8 164.4 165.9 166.3 165.8 165.7 166.9 Paper and products 3.43 163.8 170. 169.9 171. 173.9 175.0 175.8 174.9 175.3 176.4 177.5 177.5 178.0 178.0 Printing and publishing., 4.74 149.6 152.3 152.3 152.4 152.1 153.0 152.7 155.9 156.5 158.3 158.2 157.3 156.9 159.0 Newspapers 1.53 136.1 140.8 139.5 141.2 141.7 141.4 137.5 142.8 141.3 145.6 144.4 143.3 143.0 145.1 Chemicals, petroleum, and rubber.. 11.54 207.7 213.6 216.8 214.1 218.0 219.6 221.7 222.7 223.2 225.2 222.4 223.3 224.3 224.9 Chemicals and products 7.58 221.7 228.7 231.8 231.3 234.4 235.2 239.1 239.5 239.7 243.1 238. 240.2 240.5 240.7 Industrial chemicals 3.84 262.0 268.0 275.0 273.4 276.7 277.7 283.3 285.2 286.1 288.6 281.5 286.2 285.0 Petroleum products 1.97 139.6 141.4 141.2 131.0 140.2 142.7 142.2 143.5 145.4 143.5 144.5 146.2 146.7 148.'7 Rubber and plastics products 1.99 222.0 227.5 234.6 230.8 232.8 236.2 234.2 237.0 237.3 238.3 239.9 240.0 239.6 Foods, beverages, and tobacco 11.07 135.3 134.9 137.0 138.0 139.5 139.8 138.2 136.9 137.0 138.4 141.0 140.4 136.2 138.6 Foods and beverages 10.25 136.4 136. 138.8 139.4 140.9 141.5 140.5 138.6 138.3 139.9 143.1 142.2 138.0 140.7 Food manufactures 8.64 132.7 132.8 134.6 136.1 137.2 136.7 136.7 136.6 136.1 135.8 137.8 137.0 132.6 137.2 Beverages 1.61 156.5 153.7 161.6 157.4 160.9 167.2 160.6 149.4 149.8 161.7 171.3 169.9 166.7 Tobacco products .82 120.9 119.9 113.6 119.5 121.2 118.7 110.5 115.4 121.9 120.3 114.8 118.6 113.8 Mining Coal, oil, and gas 6.SO 125.3 124.6 124.2 122.4 120.2 121.9 125.7 128.7 133.1 131.7 128.8 129.9 128.1 128.5 Coal 1.16 118.2 115.9 118.3 115.3 112.4 114.3 120.2 123.9 124.8 130.0 122.1 114.7 115.7 118.9 Crude oil and natural gas. 5.64 126.8 126.3 125.4 123.9 121.8 123.5 126.9 129.6 134.8 132.1 130.2 133.1 130.7 130.5 Oil and gas extraction.. 4.91 136.5 135.1 132.8 130.8 131.3 134.0 137.5 140.5 145.8 142.0 139.9 143.1 140.4 140.2 Crude oil 4.25 130.5 128.6 126.4 124.0 124.0 127.0 130.2 133.1 139.2 135.5 132.4 135.6 132.8 133.0 Gas and gas liquids.. .66 174.5 Oil and gas drilling .73 61.1 67.3 75.4 Metal, stone, and earth minerals. 1.43 132.9 135.3 143.0 142.1 146.4 149.9 143.6 138.3 140.4 140.5 142.6 139.5 140.2 148.6 Metal mining .61 126.4 135.1 137.6 140.2 142.7 149. 146.6 134.5 137.4 138.1 142.3 133. 141. 152.3 Stone and earth minerals .82 137.8 135.5 147.0 143.5 149.2 150.5 141.4 141.2 142.6 142.2 142.8 144.3 139.6 145.9 Utilities Electric. 4.04 211.5 216.0 219.9 226.1 225.5 225.7 226.9 223.1 225.9 234.2 234.4 234.1 Gas 1.28 174.1 For note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. ° JANUARY 1970 MARKET GROUPINGS (1957-59=100) Grouping 19 p p t 5 i o r o 7 o r n - - - 59 a 1 a v 9 g e 6 r e 8 - Nov 1 . 968 Dec. Jan. Feb. Mar. Apr. May J 1 u 9 n 6 e 9 July Aug. Sept.r Oct.' Nov.' 100.00 165.5 169 1 166 3 166.5 170.5 173.1 171.9 172.4 176.7 167.7 174.6 179.2 178.0 173 3 47.35 165.1 169.2 165 6 166.6 169.3 171.9 168.6 168.4 174.0 166.4 173.4 179.2 176.4 169.3 32.31 156.9 161.7 155.8 158.9 161.8 163.9 159.0 158.2 165.5 156.5 166.3 172.6 169.3 161.4 Equipment, including defense.... 15.04 182.6 185.4 186.6 183.1 185.4 189.0 189.1 190.4 192.4 187.7 188.5 193.4 191.7 186.3 52.65 165.8 169.5 166.9 166.4 171.5 174.3 174.8 176.1 179.2 168.8 175.6 179.2 179.4 177.0 Consumer goods 3.21 174.3 198 3 185 5 185.4 183.6 186.0 174.7 173.1 191.1 132.5 133.2 181.8 189.8 177.0 1.82 174.8 212.2 192 0 187.7 181.5 184.8 164.6 165.3 191.0 94.7 91.9 175.0 188.6 172.3 Auto parts and allied products 1.39 173.8 180.1 176.9 182.3 186.3 187.5 187.9 183.5 191.1 182.1 187.6 190.6 191.3 183.2 10.00 156.0 162.7 149.2 155.9 164.2 168.9 161.9 162.3 165.4 147.9 159.2 162.0 165.8 154.3 4.59 175.4 186.2 178.8 182.8 187.7 191.2 188.8 188.4 191.2 172.0 179.4 190.5 193.8 174.7 Appliances, TV, and radios 1.81 168.4 180.1 161.5 183.2 195.0 198.8 194.7 194.3 194.6 166.1 164.4 189.5 194.1 150.2 1.33 174.1 180.7 172.2 191.8 206.0 211.7 213.1 212.0 212.7 185.5 168.8 200.7 203.9 152.6 .47 152.4 178.2 131.5 158.9 164.1 162.6 143.0 144.3 143.8 111.1 152.1 158.0 166.7 143.4 1.26 173.7 183.5 186.9 180.2 179.0 179.8 178.2 176.4 181.8 171.4 183.8 182.9 185.2 182.7 1.52 185 3 195.6 192 6 184 5 186.2 191.7 190.5 191.4 194.8 179.6 193.5 197.9 200 4 197 2 Apparel, knit goods, and shoes 5.41 139.5 142.7 124.1 133.1 144.2 150.0 139.2 140.1 143.6 127.5 142.1 137.9 142.0 19.10 154.5 155.0 154.3 155 9 156.8 157.6 154.9 153.5 161.2 165.1 175.6 176.6 167.8 162.4 8.43 132.6 137.0 132.4 128.1 129.2 128.6 127.0 128.2 134.7 134.6 150.2 155.6 146.8 141.4 Beverages and tobacco 2.43 144.5 135.0 125.9 126.9 134.5 147.5 145.4 148.3 160.8 155.8 164.8 156.4 152.8 2.97 193.4 201.4 196.8 199.6 203.7 205.0 207.8 203.8 213.3 206.6 211.3 216.9 215.4 '213!6 NewspaperSj magazines, and books. 1.47 143.3 144.1 146.8 145.0 145.1 145.4 146.5 146.9 145.7 147.5 149.4 151.1 147.0 146.9 Consumer fuel and lighting 3.67 183.4 175.0 191.3 206.9 200.5 196.4 184.1 176.0 185.6 214.3 222.6 215.2 194.3 1.20 139.0 139.7 144.6 135.3 143.0 140.0 135.1 139.3 145.1 148.7 148.7 149.4 147.0 isi.'i 2 46 205 1 Electricity 1.72 223.9 205.0 235.7 275.1 255.7 247.8 224.5 203.8 219.7 277.9 295.1 278.4 235.2 Gas .74 174 1 Equipment 11.63 184.7 188.3 191.3 190.2 191.8 194.6 195.5 196.7 200.0 193.6 195.1 201.6 200.1 193.7 6.85 168.2 172.4 175.8 175.5 174.8 176.9 178.6 181.1 184.5 179.4 179.8 185.6 181.8 175.0 2.42 205.2 211.2 209.8 210.1 212.8 215.3 215.9 219.0 221.7 216.1 221.3 226.2 227.1 224.7 Freight and passenger equipment... 1.76 234.3 240.0 239.8 238.1 244.4 249.6 249.3 245.6 250.4 245.5 244.7 251.9 254.4 249.0 Farm equipment .61 145.0 126.8 131.1 138.6 146.8 152.8 149.6 142.7 143.2 113.7 120.7 137.8 141.9 3 41 Materials 26.73 1S7.8 159.6 158.2 157.0 162.8 165.9 166.4 167.4 171.6 160.5 166.2 170.2 169.8 166.0 3.43 164 2 174.7 169 0 167 9 170.2 168.1 162.6 161.3 166.0 149.1 161.0 170 0 168 9 163.0 7.84 185.1 187.9 190 3 189 1 191.0 192.8 192.4 193.0 195.1 187.2 189.2 195.2 194 2 190.5 9.17 145.9 148.0 143.1 136.6 143.4 148.3 151.7 155.3 161.6 154.5 160.4 160.3 158 0 152.1 6.29 137.7 132.9 134.3 140.8 151.6 157.0 157.6 156.6 160.1 142.1 149.0 153.8 157 0 157.3 25.92 174.1 179.6 176.0 176.2 180.6 182.8 183.4 1SS.0 187.0 177.3 185.3 188.5 189.4 188.3 9.11 157.6 165.3 157.7 158.4 163.7 168.3 166.9 168.6 168.0 156.8 167.5 171.7 175.3 173.0 3.03 156 6 161.1 146 7 159 0 166.1 171.3 170.9 169.9 172.7 161 4 176 7 177 5 181 6 172 2 6.07 158.1 167.5 163.2 158.0 162.5 166.8 164.9 168.0 165.7 154.5 162.8 168.8 172.2 173.4 7.40 222.4 232.6 228.9 228.2 236.2 237.4 239.3 240.1 243.0 227.8 235.8 241.3 243.4 243.7 9.41 152.0 151.9 152.0 152.5 153.1 153.9 155.4 157.4 161.2 157.5 162.9 163.2 160.6 159.5 6.07 133.0 132.7 131.6 129 9 131.8 133.0 135.9 137.3 138.1 129 5 134.8 135 9 136 2 137 4 2 86 200 2 Electricity 2.32 202.3 201.2 203.8 210.2 205.9 207.7 206.4 210.9 224.4 231.7 240.2 238.8 227.4 General industrial 1.03 197.4 202.0 202.2 205.2 202.7 207.3 209.6 214.5 220.7 215.6 223.6 224.7 225.1 Commercial and other 1.21 216.6 210.9 215.5 225.4 219.2 218.7 214.3 218.7 239.4 258.0 267.6 263.9 241.7 Gas .54 174.1 Supplementary groups of consumer goods 7.80 175.0 191.2 181.5 183.9 186.0 189.1 183.0 182.1 191.1 155.7 160.4 186.9 192 1 175.7 Apparel and staples 24.51 151.2 152.3 147.6 150.9 154.1 156.0 151.4 150.5 157.3 156.8 168.2 168.0 162.1 For note see page A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1957-59= 100) Grouping 19 p p 5 r o 7 o r - - - 59 a 1 v 9 e 6 r 8 - 1968 1969 tion Nov. Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct.' Nov. Total index 100.00 165.5 169. 166.3 166.5 170.5 173.1 171.9 172. 176.7 167. 174.6 179.2 178.0 173.3 Manufacturing, total 86.45 166.9 171.4 167.5 167.0 172. 175.1 173. 174.4 178.5 167.3 174.3 180.0 779.7 174.7 U M t D N i i n li o u i t n n i r e g a d s b u l r e able 4 3 8 5 8 8 . . . . 2 3 0 3 2 7 3 8 2 1 1 1 0 6 6 2 2 9 3 6 . . . 8 3 6 1 1 1 7 2 6 4 6 8 . . . 8 0 1 1 12 7 6 6 2 1 . . . 3 6 2 1 1 12 7 6 4 1 1 . . . 1 4 4 1 1 1 7 2 6 5 4 8 . . . 3 2 0 1 1 1 7 2 7 0 5 8 . . . 8 4 6 m 1 13 6 0 8 . . i .6 1 1 1 6 3 7 9 2 8 . . . 5 9 3 1 1 1 8 7 3 2 3 4 . . 9 6 1 1 1 6 6 2 9 4 7 . . . 7 3 9 1 1 13 7 7 2 3 5 . . . 3 6 0 1 1 1 7 8 3 8 1 2 . . . 1 5 9 1 1 1 8 3 7 1 2 7 . . . 5 7 6 1 1 1 7 7 3 5 3 2 . . . 5 7 3 Durable manufactures Primary and fabricated metals... 12.32 150.5 149.8 150.6 153, 160.1 164.0 164. 164.1 167.9 154.3 161.7 165.7 166.3 165.9 Primary metals 6.95 137.0 129.3 131.3 139. 150.3 155.3 155.3 153.0 155.4 137.2 144.2 148.6 151.9 152.6 Iron and steel 5.45 130.7 117.0 121.5 129. 140.4 146.0 146.8 144.4 145.6 130.0 135.5 140.0 143.6 145.2 Nonferrous metals and product 1.50 160.0 173.8 167.0 176. 186. 189.0 186.2 184.3 190.8 163.6 176.1 179.9 181.9 179.7 Fabricated metal products 5.31 167.9 176.3 175.6 172, 172.8 175.3 175.6 178.3 184.2 176.4 184.2 187.7 184.9 183.0 Structural metal parts 2.86 162. 170.8 172.0 166. 167.5 168.9 169.2 172. 177.3 170.8 175.8 178.4 177.7 177.0 Machinery and related products.. 27.98 183.7 190.3 188.4 186.8 189. 192.1 190.0 190.5 194. 180.8 182.0 193.6 193.3 184.9 Machinery 14.80 184.3 189.1 188. 191.7 195.0 197.6 197.4 198.5 201.3 190.6 193.2 202.1 200.7 190.0 Nonelectrical machinery 8.43 181.0 182.6 185.3 188.3 192.3 195.5 196.5 197.9 200.8 191.1 188.3 197.2 196.6 193.8 Electrical machinery 6.37 188.5 197.6 192.4 196.1 198.6 200.5 198.6 199.3 201.9 189.9 199.8 208.5 206.2 185.1 Transportation equipment 10.19 179.5 188.3 183.8 176.0 178.2 181.4 176.2 175.6 181.1 161.4 160.6 179.7 181.7 174.2 Motor vehicles and parts 4.68 171.4 192.6 181.5 176.6 176.3 177.7 167.9 165.6 180.9 136.5 137.7 173.8 179.8 170.1 Aircraft and other equipment. 5.26 185.0 182.3 183. 172.6 176.7 181.1 179.6 180.1 177.0 179.0 177.1 181.9 180.5 174.5 Instruments and related products 1.71 184.2 190.0 192.0 189.3 189.4 191.8 192.5 193.3 197.7 192.8 196.5 197.5 196.0 196.5 Ordnance and accessories 1.28 Clay, glass, and lumber 4.7. 137.4 139.4 133.2 127.6 134.6 140.1 142.8 145.2 150.4 143.6 150.3 150.3 149.0 141.3 Clay, glass, and stone products. 2.99 146.2 150.4 143. 138.4 141.0 147.4 154.5 159.4 165.9 161.1 167.4 166.7 164.8 156.6 Lumber and products 1.73 122.3 120.4 115.8 109.0 123.5 127.5 122.6 120.7 123.6 113.4 120.9 122.1 121.8 Furniture and miscellaneous 3.05 169.9 180.0 177.7 169.8 171.0 173.3 173.7 174.8 179.3 170.6 181.3 181.9 184.0 181.9 Furniture and fixtures*. 1.54 178.3 186.8 189.8 183.1 183.7 184.8 183.8 184.5 189.5 180.4 191.7 190.9 191.0 189.1 Miscellaneous manufactures 1.51 161.4 173.1 165.3 156.2 158.1 161.6 163.4 165.0 168.9 160.7 170.8 172.7 176.9 174.7 Nondurable manufactures Textiles, apparel, and leather 7.60 144.8 148.0 133.2 140.6 148.7 154.5 145.4 146.9 149.2 131.2 145.9 143.8 146.9 143.9 Textile mill products 2.90 151.5 157.4 146.6 150.6 154.3 159.8 155.7 158.8 161.0 142.1 153.8 154.6 156.9 156.5 Apparel products 3.59 149.9 152.5 132.0 143.7 156.8 163.7 150.8 151.5 153.7 135.6 151.8 149.0 152.4 Leather and products 1.11 111.0 109.5 101.9 104.5 108.3 110.9 101.3 101.1 104.2 88.6 106.5 99.2 103.6 Paper and printing 8.17 155.0 163.1 155.9 157.0 162.0 165.9 165.3 165.1 165.6 155.8 164.3 168.3 173.5 172.3 Paper and products 3.43 163.8 177.0 156.3 168.5 178.2 180.3 178.4 175.8 179.3 162.3 177.5 180.2 189.6 183.6 Printing and publishing.. 4.74 149.6 157.4 155.6 148.7 150.3 155.6 155.7 157.4 155.7 151.2 154.7 159.7 161.9 164.2 Newspapers 1.53 136.1 154.9 143.0 129.9 136.0 144.9 146.4 152.2 142.0 126.7 132.1 144.0 153.4 159.6 Chemicals, petroleum, and rubber.. 11.54 207.7 214.3 212. 210.2 220.8 221.3 222.1 222.8 228.2 216.1 223.1 229.4 228.6 225.9 Chemicals and products 7.58 221.7 230.9 227.8 226.5 236. 237.3 241.9 239.7 244.9 234.7 239.0 244.8 243.3 241.8 Industrial chemicals 3.84 262.0 274.7 275.0 269.3 280.9 280.5 286.1 285.2 287.5 277.1 280.1 289.1 287.8 Petroleum products 1.97 139.6 139.6 137.8 127.1 137.4 137.7 136.5 142. 149.8 151.1 152.2 152.0 148.2 146! 8 Rubber and plastics products 1.99 222.0 225.2 226.4 230.8 244.9 243.5 231.9 238.2 242.0 209.7 232.7 247.2 252.8 Foods, beverages, and tobacco... 11.07 135.3 136.9 131.2 128.2 130.7 133.1 131.3 132.8 140.5 139.1 152.9 155.3 148.4 140.7 Foods and beverages 10.25 136.4 138.0 134.2 129.0 131.6 134.4 133.0 133.8 141.3 141.7 155.2 157.9 150.4 142.7 Food manufactures 8.64 132.7 137.4 132.6 128.6 129.7 129.0 127.4 128.4 134.7 134.4 149.5 155.0 147.2 142.0 Beverages 1.61 156.5 141.4 143.0 131.3 141.6 163.0 163.2 162.8 176.2 180.8 185.5 173.3 167.5 Tobacco products .82 120.9 122.3 92.5 118.2 120.6 116.9 110.3 119.6 130.4 106.5 124.2 123.2 123.9 Mining Coal, oil, and gas 6.80 125.3 125.7 125.6 124.4 123.9 124.1 128.3 129.6 130.3 122.6 127.3 128.3 128.6 129.7 Coal 1.16 118.2 120.6 116.2 113.0 113.7 115.2 121.0 125.1 116.6 91.0 128.4 121.3 126. 123.8 Crude oil and natural gas 5.64 126.8 126.7 127.5 126.8 126.0 125.9 129.8 130.5 133.1 129.1 127.1 129.8 129. 130.9 Oil and gas extraction 4.91 136.5 135.5 135.2 134.0 136.1 137.2 139.4 140.2 143.2 138.6 136.3 139.4 138.6 140.6 Crude oil 4.25 130.5 128.6 127.7 125.9 127.7 129.5 132.3 133.8 137.8 132.8 129.8 132.9 131.5 133.0 Gas and gas liquids .66 174.5 Oil and gas drilling .73 61.1 67.0 75.2 Metal, stone, and earth minerals.. 1.43 132.9 132.1 129.5 122.2 125.7 131.5 139.2 148.9 155.1 752.8 156.0 154.4 152.1 144.9 Metal mining .61 126.4 125.6 123.8 123.4 128.4 132.7 136.3 147.9 155.3 147.8 153.7 150.4 151.0 141.6 Stone and earth minerals .82 137.8 136.9 133. 121.4 123.7 130.6 141.4 149.7 155.0 156.6 157.8 157.3 152.9 147.4 Utilities Electric 4.04 211.5 202.8 217.4 237.9 227.1 224.8 214.1 207.9 222.4 251.4 263.6 255.7 230.7 Gas 1.28 174.1 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 BUSINESS ACTIVITY; CONSTRUCTION a JANUARY 1970 SELECTED BUSINESS INDEXES (1957-59 = 100, unless otherwise noted) 1ndustrial production Manu- Prices « facturing 2 Major market groupings Major industry p ut a C j c l a i i z - ty a- s C tr o u n c - - N r t o i u c n r u a a l l g - - Total Period Total Final products Mate- groupings in c ( e m p n e f t r g ) . t t r c i o a o n c n t - s T p o e l t m o a y l - - i p m E l m o en y - t - P ro a l y ls - s r a e l t e a s il 3 s C um on e - r W m c s o o a h m d l o e - i l t e y - Total g s C u o o m o n d - e s rE m qu en ip t - rials Mfg. M in in g - U iti t e il s - 1951 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.9 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 84.5 173 129.2 115.2 167.8 166 121.2 108.7 1968—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 171.7 170.2 161.8 188.4 172.9 173.0 128.8 216.3 183 132.9 117.0 177.8 172 126.4 111.9 May 172.5 170.0 160.7 190.0 174.5 173.8 130.3 213.6 "84.5 210 133.3 117.0 177.7 172 126.8 112.8 June 173.7 170.7 161.5 190.4 176.3 174.8 134.4 215.6 180 133.8 117.6 180.3 172 127.6 113.2 July 174.6 172.8 164.4 190.8 176.5 175.6 133.2 222.2 176 133.7 117.3 179.8 170 128.2 113.3 174.3 172.7 164.2 190.3 175.9 175.4 131.2 222.6 "84.2 216 134.2 118.5 183.9 172 128.7 113.4 Sept 173.9 172.2 162.8 192.4 176.0 175.2 131.6 222.5 173 134.0 117.3 184.2 171 129.3 113.6 Oct 173.1 170.7 160.8 191.8 175.9 174.1 130.2 224.4 195 134.5 117.0 183.4 173 129.8 114.0 Nov 171.4 168.0 159.6 185.9 174.6 171.9 132.0 224.9 | "81.8 178 134.5 115.9 182.4 173 130.5 114.7 Dec* 170.9 167.6 159.1 185.8 174.0 171.2 133.9 225.5 134.5 115.8 183.9 173 115.0 1 Employees only; excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, MeGraw- 2 Production workers only. Hill Economics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar * Prices are not seasonally adjusted. value of total construction contracts, including residential, nonresidential, 5 Figure is for 4th quarter 1968. and heavy engineering; does not include data for Alaska and Hawaii. NOTE.—All series: Data are seasonally adjusted unless otherwise noted. inc E lu m d p e l s o d ym at e a n f t o r a n A d l a p s a k y a r o a l n ls d : H Ba a s w e a d i i o b n e g B in u n re in a g u w o i f t h L a 1 b 9 o 59 r . Statistics data; Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1968 1969 Type of ownership and type of construction 1967 1968 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov, Total construction l 54,514 61,732 4,863 4,543 4,766 4,802 5,003 5,895 7,081 6,443 6,298 6,523 5,140 6,240 4,406 By type of ownership: Public 19,039 19,597 1,558 1,278 1,546 1,572 1,632 1,791 2,536 2,326 2,352 2,605 1,719 1,626 Private i 35,475 42,135 3,305 3,265 3,220 3,230 3,371 4,104 4,545 4,118 3,947 3,918 3,420 4,615 By tyoe of construction: Residential building ' 21,155 24,838 2,043 1,743 1,746 1,820 1,957 2,546 2,620 2,548 2,296 2,394 1,952 2,290 1,675 Nonresidential building 20,139 22,512 1,992 1,849 2,145 1,885 1,772 2,136 2,680 2,357 2,402 2,460 2,013 2,502 1,566 Nonbuilding 13,220 14,382 828 951 875 1,097 1,274 1,213 1,780 1,538 1,600 1,669 1,174 1,149 1,165 Private housing units authorized... 1,141 1,330 1,425 1,463 1,403 1,477 1,421 1,502 1,323 1,340 1,228 1,245 1,201 rl,183 1,159 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes NOTE.—Dollar value of construction contracts as reported by theF. 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total N f r a e o r s n m i- - BuUduigs Total M ta i r l y i- H w ig a h y - C v o a n & ti s o e n r- Others dential Total In tr d ia u l s- m C e o r m cia - l b i O n u t g h i s l e d r 1 - Other de m v e e n lo t p- 1959 55,305 39,235 24,251 14,984 2,106 3,930 2,823 6,125 16,070 1,465 5,761 1,121 7,723 1960 53,941 38 078 21,706 16,372 2,851 4,180 3,118 6,223 15,863 1,366 5,437 1,175 7,885 1961 55,447 38,299 21,680 16,619 2,780 4,674 3,280 5,885 17,148 1,371 5,854 1,384 8,539 1962 3 59,667 41,798 24,292 17,506 2,842 5,144 3,631 5,889 17,869 1,266 6,365 1,524 8,714 1963* 63,423 44,057 26,187 17,870 2,906 4,995 3,745 6,224 19,366 1,189 7,084 1,690 9,403 1964 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1,729 10,590 1965 72 319 50.253 26,268 23,985 5,118 6,739 4,735 7,393 22,066 852 7,550 2,019 11,645 1966 75,120 51,120 23,971 27,149 6,679 6,879 5,037 8,554 24,000 769 8,355 2,195 12 681 1967 76,160 50,587 23,736 26,851 6,131 6,982 4,993 8,745 25,573 721 8,538 2,196 14 511 1968 84 692 56,996 28,823 28,173 5,594 8,333 4,873 9,373 27,696 824 9,295 2,046 15,531 1968 Nov 87,812 59,014 30,152 28,862 6,271 8,262 4,716 9,613 28,798 852 9,444 2,005 16,497 Dec 88 068 58,899 30,937 27,962 5,905 8,046 4,449 9,562 27,169 1,132 9,605 2,155 14,277 1969 Jan 91 972 62 875 31 084 31 791 6 800 9 971 5 142 9 878 29 097 1 044 Feb 92*066 62 550 31 436 31 114 6 318 9 941 5 198 9 657 29 516 1 024 Mar r 91 722 62 762 32 423 30 339 6,019 9 751 4 827 9 742 29 960 1 039 Apt.' 92,696 62,962 32,930 30,032 5,857 9,066 5,273 9,836 29,734 1,196 May 92 254 63 564 32,866 30 698 5,923 9 284 5,428 10,063 28 690 1 003 91 539 63 197 31 805 31 392 6,050 10 020 5 117 10 145 28 342 949 Julvr 91 787 64 242 31 385 32,857 6,404 10,417 5,566 10,470 27 545 792 91 687 64 008 30,880 33,128 6,414 10,343 5,917 10,454 27,679 863 Sect r 93 608 65 546 31,035 34,511 6,714 11,118 5,995 10,684 28,044 920 93 896 65 811 31 530 34 281 6 946 10 856 5 850 10 629 28 085 Nov 91,950 63^756 31,203 32,553 6,526 9,557 12,073 10,247 28,194 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.) 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- ily 2 fa - m to i l 4 y - f m 5 am - o o r i r e ly - 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 1,313 52 328 244 83 90 1962 ,463 264 290 531 378 991 471 1,492 1,463 30 339 261 78 118 1963 ,610 261 328 591 431 1,021 589 1,642 1,610 32 292 221 71 151 1964 ,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 59 191 1965 ,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966 ,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967 ,292 215 337 520 220 844 72 376 1,322 1 292 30 232 180 53 240 1968 ,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 318 1968—Nov.. ,733 193 396 810 334 905 86 742 130 127 2 22 18 4 28 Dec.. ,509 196 345 659 307 922 69 516 100 96 3 21 16 4 24 1969—Jan... ,878 316 564 760 238 1,066 88 724 106 102 4 18 14 4 27 Feb... ,686 216 578 662 230 975 112 599 95 90 5 17 13 3 28 Mar.. ,584 265 430 554 335 828 92 664 136 132 4 23 19 4 32 ,563 255 358 582 368 797 86 680 160 159 1 27 23 4 35 Ma'y! .509 243 345 587 334 883 84 542 158 156 2 25 21 4 33 June. 1,469 236 288 604 341 808 76 585 151 147 4 26 22 5 35 July.. 1,371 193 285 551 342 765 65 541 127 125 1 26 21 5 33 Aug.. 1,384 189 388 529 278 723 69 592 128 125 3 27 22 4 35 Sept.. 1,542 155 380 620 387 849 93 603 133 129 4 23 18 5 36 O No ct v . . " !1 . 1, , 3 2 7 87 2 1 14 7 1 3 2 3 5 0 9 7 5 5 2 58 8 3 32 6 9 4 7 76 7 7 0 9 9 1 8 4 5 2 0 9 4 1 9 2 7 4 1 9 2 4 2 2 3 2 3 2 0 2 1 5 8 5 4 4 2 0 9 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 Manufacturers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT a JANUARY 1970 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, unless otherwise indicated) Civilian labor force, S.A. Period i p T n o s o N t p t i a u t . u S l l t a . n i A t o i o o n . n n a - l l N ab N o o t . r S in . f A o t r . h c e e T l f S a o o b . r A t c o a e r . l Total Total E I i n n m c d u n p u l o l t s n o u t a y r r a i g e e l r d s i 1 - agric I u n lture U pl n o e y m ed - U (p n e m r e S r a m . e t A c e n p e * . t l n o t y ) - 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 1969 137,841 53,602 84,239 80,733 77,902 74,296 3,606 2,831 3.5 19683-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 3.5 137,737 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 3.6 138,127 52,081 84,584 81,054 78,187 74,553 3,634 2,867 3.5 Sept 138,317 53,790 84,902 81,359 78,127 74,669 3,458 3,232 4.0 Oct 138,539 53,501 85,014 81,486 78,325 74,993 3,332 3,161 3.9 Nov 138,732 53,812 84,788 81,295 78,497 75,068 3,429 2,798 3.4 Dec 138,928 54,072 85,029 81,589 78,779 75,274 3,505 2,810 3.4 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning Jan. 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousandsof persons) Period Total M t a u n r u in f g ac- Mining c C o o n t n i s o t t r n r a u c c t - T t l i i o r c a n n u s & t p il o i p t r i u t e b a s - - Trade Finance Service G m ov e e n r t n- 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 1969» 70,138 20,120 628 3,410 4,449 14,643 3,558 11,102 12,227 SEASONALLY ADJUSTED 1968 Dec 68,875 19,958 623 3,330 4,360 14,271 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 Apr 69 789 20 111 624 3 363 4,439 14,533 3,531 11,044 12 144 May 70,013 20,118 622 3,407 4,444 14,609 3,541 11,065 12,207 70,300 20,198 622 3,466 4,467 14,665 3,557 11,066 12,259 July 70,247 20,164 629 3,434 4,483 14,671 3,568 11,067 12,231 70 500 20 334 631 3 410 4,484 14,702 3,581 11,120 12 238 Sept 70 390 20 197 631 3,420 4,480 14,716 3,586 11,150 12,210 Oct 70 651 20 156 631 3,418 4,480 14,809 3,595 11,244 12,318 Nov.p 70 653 20,018 632 3,460 4,488 14,823 3,610 11,265 12,357 Dec.P 70,639 19,988 636 3,446 4,493 14,785 3,615 11,288 12,388 NOT SEASONALLY ADJUSTED 1968 —Dec . 69,805 20,008 619 3.247 4,370 15,113 3,449 10,773 12,226 1969 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 10,792 12,244 Mar 68,894 19,978 610 3,077 4,346 14,201 3,490 10,913 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 70 980 20 336 638 3,601 4,512 14,717 3,585 11,243 12,348 July 70,347 20,114 645 3,681 4,528 14,662 3,629 11,266 11,822 Aug 70,607 20,435 647 3,707 4,533 14,660 3,642 11,253 11,730 Sept 70,814 20,421 639 3,663 4,529 14,702 3,597 11,183 12,080 Oct 71 198 20 339 632 3,623 4,502 14,847 3,591 11,255 12,409 71 244 20 156 631 3 529 4,510 15,077 3,596 11,231 12,514 Dec.? 71,588 20,039 632 3,360 4,502 15,655 3,601 11,220 12,579 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 Oct. 1967 Census of Governments. persons, domestic servants, unpaid family workers, and members of Beginning with 1967, series has been adjusted to Mar. 1968 benchthe Armed Forces are excluded. mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1969 1968 1969 Dec. Oct. Nov.* Dec.* Dec. Oct. Nov.!" Dec." Total 14,635 14,732 14,603 14,582 14,701 14,918 14,750 14,645 Durable goods 8,536 8,674 8,509 8,491 8,595 8,733 8,588 8,546 Ordnance and accessories 195 168 167 160 198 170 169 163 Lumber and wood products 324 509 510 510 518 514 509 505 Furniture and fixtures 402 408 404 405 407 413 410 410 Stone, clay, and glass products 530 531 530 531 523 537 534 524 Primary metal industries 1,044 1,109 1,105 1,097 1,036 1,084 1,088 1,088 Fabricated metal products 1,100 1,117 1,117 1,122 1,112 1,129 1,133 1,134 Machinery 1,346 1,387 1,374 1,379 1,343 1,372 1,366 1,376 Electrical equipment and supplies 1,330 1,389 1,276 1,272 1,354 1,407 1,297 1,294 Transportation equipment 1,427 1,423 1,398 1,373 1,467 1,449 1,430 1,411 Instruments and related products 287 288 287 285 290 289 289 288 Miscellaneous manufacturing industries.. 351 345 341 357 347 369 363 353 Nondurable goods 6,099 6,058 6,094 6,091 6,106 6,185 6,162 6,099 Food and kindred products 1,202 1,185 1,215 1,200 1,192 1,270 1,244 1,190 Tobacco manufactures 69 65 65 64 75 78 72 70 Textile-mill products 883 860 862 863 884 866 867 864 Apparel and related products 1,243 1,238 1,237 1,245 1,242 1,255 1,250 1,244 Paper and allied products 549 557 558 559 551 558 562 562 Printing, publishing, and allied industries 671 683 684 684 676 685 689 Chemicals and allied products 617 613 617 619 614 610 614 616 Petroleum refining and related industries. 119 118 119 120 117 119 118 118 Rubber and misc. plastic products 441 450 448 446 448 455 455 453 Leather and leather products 305 289 289 291 307 289 292 293 NOTE.—Bureau of Labor Statistics; data cover production and related workers only (full- and part-time) who worked during, or received pay for, the pay period that includes the 12th of the 'month. HOURS AND EARNINGS OF PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES Average hours worked Average weekly earnings Average hourly earnings (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1968 1969 1968 1969 1968 1969 Dec. Oct. Nov.* Dec.* Dec. Oct. Nov.* Dec.* Dec. Oct. Nov.* Dec* Total 40.8 40.5 40.5 40.6 127.82 131.87 132.36 134.15 3.11 3.24 3.26 3.28 Durable goods 41.3 41.2 41.1 41.2 137.61 142.42 142.14 144.77 3.30 3.44 3.45 3.48 Ordnance and accessories 41.3 40.1 40.5 40.3 141.28 141.05 144.43 144.43 3.38 3.50 3.54 3.54 Lumber and wood products 41.1 40.0 40.3 40.8 107.16 113.93 113.32 114.09 2.62 2.82 2.84 2.81 Furniture and fixtures 40.5 39.9 39.9 40.1 105.32 108.81 108.81 110.84 2.55 2.68 2.70 2.71 Stone, clay, and glass products 42.0 41.7 42.1 42.0 128.21 137.57 138.09 136.59 3.06 3.26 3.28 3.26 Primary metal industries 41.6 42.2 41.6 41.5 152.67 160.55 159.39 160.61 3.67 3.85 3.85 3.87 Fabricated metal products 41.7 41.4 41.4 41.8 136.50 141.36 141.44 144.40 3.25 3.39 3.40 3.43 Machinery 42.2 42.4 42.4 42.5 148.17 155.61 155.61 159.10 3.47 3.67 3.67 3.70 Electrical equipment and supplies 40.2 40.2 40.1 40.2 J23.62 126.45 126.36 129.34 3.03 3.13 3.12 3.17 Transportation equipment 41.8 41.3 40.5 41.0 164.86 165.92 164.77 168.05 3.87 3.96 3.98 4.03 Instruments and related products 40.5 40.7 41.0 41.7 125.97 131.70 133.49 138.51 3.08 3.22 3.24 3.29 Miscellaneous manufacturing industries.. 39.0 38.8 38.8 38.8 101.14 105.32 106.23 107.25 2.58 2.68 2.71 2.75 Nondurable goods 39.9 39.5 39.5 39.8 113.08 117.51 117.91 119.60 2.82 2.96 2.97 2.99 Food and kindred products 40.9 40.5 40.7 40.6 117.96 120.88 122.70 124.03 2.87 2.97 3.00 3.04 Tobacco manufactures 37.1 37.2 37.4 36.8 96.14 96.77 98.74 100.61 2.55 2.52 2.64 2.69 Textile-mill products 41.2 40.6 40.8 41.0 94.85 98.57 99.46 100.19 2.28 2.41 2.42 2.42 Apparel and related products 36.1 35.7 35.8 36.2 81.36 83.77 84.13 84.84 2.26 2.34 2.35 2.35 Paper and allied products 43.2 42.7 42.8 42.7 136.90 142.33 142.76 143.09 3.14 3.31 3.32 3.32 Printing, publishing, and allied industries 38.5 38.3 38.3 38.8 139.65 144.77 144.77 149.35 3.59 3.77 3.78 3.81 Chemicals and allied products 41.9 41.7 41.8 41.9 141.46 147.62 148.75 150.72 3.36 3.54 3.55 3.58 Petroleum refining and related industries 42.7 42.6 42.7 42.9 159.56 173.36 174.22 170.89 3.79 4.06 4.08 4.04 Rubber and misc. plastic products 41.5 40.9 40.8 41.1 126.12 129.27 128.64 130.31 3.01 3.13 3.13 3.14 Leather and leather products 37.8 37.3 37.4 37.5 88.32 88.80 90.88 92.58 2.30 2.40 2.43 2.43 NOTE.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 PRICES o JANUARY 1970 CONSUMER PRICES (1957-59=100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m i e p e r - - F c a o o u n i a e l d l l t e r G a l i n c e a i c d t s - y o n F i p a n i u n e s g r h r d s a - - - A u p p a p k n a e d e r p elT p t o r i a r o t n n a s - - Total M c ic a e a r d e l - s c P o a e n r r a e - l r R e a c i e n r n a e g d d a- - O g s a o e t n r o h v d d e - r s tion tion ices 1929 59 7 55 6 85.4 1933 45 1 35 1 60.8 1941. 51.3 44.2 61.4 64. 45 2 88.3 51.2 50.6 47.6 57.3 58.2 1945. 62.7 58.4 67.5 66. 53 6 86.4 55.4 57.5 63.6 75.0 67.3 1958. 100.7 101 9 ion 7 100 1 100 4 <»q 0 100.3 99.9 99.8 99.7 100.3 100.1 100.4 100.8 99.8 1959. 101.5 100 1 101 1 101 6 101 4 100 ? 102.8 100.7 100.6 103.8 102.8 104.4 102.4 102.4 101.8 1960 103.1 101 4 103.1 103.1 103.7 99 5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104.9 103.8 1961 104.2 10? 6 101 q 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 105.4 101 6 104.8 105.7 105.A 10? 107.9 101.5 103.6 107.2 109.4 114.2 106.5 109.6 105.3 1963. 106.7 Ml 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 ? 107 8 109. 101 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965. 109.9 108 8 108 f 108 q 111.4 10"> a 107.8 103.1 106.8 111.1 115.6 122.3 109.9 115.2 111.4 1966. 113.1 114 ? 111 1 110 4 115.7 108 1 108.1 105.0 109.6 112.7 119.0 127.7 112.2 117.1 114.9 1967. 116.3 in ? 114 i 11? 4 120.? 111 fi 108.5 108.4 114.0 115.9 123.8 136.7 115.5 120.1 118.2 1968 Nnv 123 4 120 121.7 116.1 131.1 115 q 109.9 114.8 124.0 121.2 132.4 148.2 122.8 128.0 125.4 TV.C 123.7 1212 1223 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 Tun . . .. 124 1 122n 122.7 116.q 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 q 123 1 117.? 133. 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.^ 135.7 117.2 110.6 116.4 124.9 124.3 134.3 152.5 124.8 128.7 126.1 Apr . .. 126 4 123 1 125 1 117 8 137. 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 1 138.0 117 1 111.2 117.4 126.6 124.0 135.7 154.5 125.8 130.2 126.9 127 6 125 1 126 1 118 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 4 110.9 118.2 126.8 124.3 137.0 155.9 126.6 130.7 129.1 128 7 127 4 127 8 119 1 141.1 117 7 111.5 118.5 126.6 124.2 137.7 156.8 126.8 131.2 130.1 Sent 129 3 127 ^ 128 6 119.7 142.6 118 112.0 119.0 128.7 123.6 138.4 157.6 127.3 131.6 131.3 Oct 129 8 127 •> !•><) ? no 1 143.6 118 4 112.2 119.3 129.8 125.7 138.6 156.9 127.3 132.0 132.2 Nov .. 130.5 128 1 129 8 120 5 144 5 118 9 113.2 119.6 130.7 125.6 139.1 157.4 127.8 132.3 133.1 NOTE.—Bureau of Labor Statistics index for city -wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1957-59=100) Industrial commodities Period m c t A o o ie m l d l s i - - p F u r a c o r t d m s - c f f e P o a e s r o e n s o d d e d - d s s Total T t e il t e e c x s . - , H e i t d c. es, F e u tc e . l, C ic e h a t e c l m . s, - R b e u t e c b r . , - L b e u t e c m r . , - P e a t p c e . r, M e a t l e c s . , t- e c M q a h n u i a n d i - p - - F t e u u t r r c n e . , i- N t m e m a r o i l a e n n l - i l - - c s T e p m t q r o i e a u o r n t n n i a p s t * 1 - - n c M e e o l i l s u a - s ment 1958 100.4 103.6 102.5 99.5 98.9 96.0 98.7 100.4 100.1 97.4 100.1 99.1 100.0 100.2 99.9 100 6 1959 100.6 97.2 99.9 101.3 100.4 109.1 98.7 100.0 99.7 104.1 101.0 101.2 102.1 100.4 101.2 100 8 1960 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.9 100.1 101.4 101 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 99.5 101.8 102 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 98.8 101.8 102 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 98.0 101.7 104.8 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 99.1 102.6 106.8 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 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 98.1 101.1 138.0 108.1 117.5 118.3 105.9 112.6 100.2 112.8 113.2 111.2 121A 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 98.2 102.5 125.3 108.4 118.7 119.0 106.1 113.0 100.4 115 5 Aug 113.4 108.9 121.5 112.8 108.7 126.4 104.7 98.7 103.0 124.0 108.7 120.4 119.1 106.2 113 0 99.9 115 9 Sept 113.6 108.4 121.3 113.2 109.0 128 2 104 7 98 9 102.7 123.2 108.8 121.7 119.9 106.4 113 5 100.0 116,4 Oct 114.0 107.9 121.6 113.8 109.1 127.4 105.4 98.6 103.5 122.6 109.0 122.4 120.5 106.5 113.8 102.3 116.7 Nov 114.7 111.1 121.8 114.2 109.2 126.8 105.5 98.9 104.4 123.9 109.3 122.9 121.0 106.9 113.9 102.7 117.0 1 For transportation equipment, Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • PRICES A 67 WHOLESALE PRICES: DETAIL (1957-59= 100) 1968 1969 1968 1969 Group Group Nov. Sept. Oct. Nov. Nov. Sept. Oct. Nov. Farm products: Pulp, paper, and allied products: Fresh and dried produce. 109.4 103.4 101.3 125.3 Pulp, paper and products, excluding Grains 82.0 83.4 84.8 81.7 building paper and board 105.7 109.3 109.6 109.9 Livestock 103.9 119.2 118.7 116.6 Woodpulp 98.0 98.0 98.0 98.0 Live poultry 87.6 89.0 85.3 86.3 Wastepaper 112.8 108.4 107.2 107.0 Plant and animal fibers.. 71.2 66.4 66.1 66.0 Paper 113.4 116.5 116.5 117.0 Fluid milk 132.4 135.6 136.8 137.6 Paperboard 91.0 95.9 95.9 96.0 167.6 122.5 113.8 139.8 Converted paper and paperboard.. 105.4 109.8 110.3 110.6 Hay and seeds 107.3 105.7 101.2 103.4 Building paper and board 93.8 95.1 94.6 94.4 Other farm products. 106.9 110.6 116.7 115.9 Processed foods and feeds: Metals and metal products: Cereal and bakery products 119.3 120.4 121.2 121.9 Iron and steel 106.0 113.2 113.7 113.7 Meat, poultry, and fish 107.7 122.9 120.2 120.5 Steelmill products 109.1 115.5 116.4 116.4 Dairy products 130.0 133.4 130.7 131.2 Nonferrous metals 122.4 143.5 144.8 146.4 Processed fruits and vegetables 114.1 116.6 116.0 116.3 Metal containers'. 117.3 120.3 120.6 120.6 Sugar and confectionery 117.9 127.2 127.7 127.9 Hardware 117.6 121.0 122.2 122.7 Beverages and beverage materials.... 110.6 113.1 115.0 116.0 Plumbing equipment 115.0 120.2 120.8 122.2 Animal fats and oils 78.2 104.0 118.3 123.0 Heating equipment 95.8 98.0 98.7 99.3 Crude vegetable oils 76.2 79.8 88.4 97.0 Fabricated structural metal products 108.8 112.8 113.4 113.6 Refined vegetable oils 90.0 85.0 88.9 91.1 Miscellaneous metal products 117.7 124.2 124.4 124.4 Vegetable oil end products 99.9 102.1 104.7 106.5 Miscellaneous processed foods 118.5 121.2 131.6 127.2 Manufactured animal feeds 117.3 119.3 119.9 119.5 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip... 129.3 133.0 133.2 135.8 Construction machinery and equip. 132.1 136.1 137.7 138.6 Cotton products 105.4 105.9 105.8 106.0 Metalworking machinery and equip 130.4 134.4 135.4 136.5 Wool products 104.6 105.0 104.5 104.6 General purpose machinery and Man-made fiber textile products 93.0 92.1 91.6 91.5 equipment 113.3 122.6 123.4 123.7 Silk yarns 172.0 181.2 183.9 184.6 Special industry machinery and Apparel 111.8 116.2 116.5 116.7 equipment (Jan. 1961= 100) 124.8 129.6 130.2 130.6 Textile housefumishings 110.1 107.3 108.0 108.0 Electrical machinery and equip 103.6 105.4 105.6 106.0 Miscellaneous textile products 125.2 121.4 127.2 129.6 Miscellaneous machinery 115.2 119.2 120.0 120.4 Hides, skins, leather, and products: Furniture and household durables: Hides and skins 107.0 128.7 118.0 110.4 Leather 113.8 121.7 120.3 119.6 Household furniture 118.9 123.0 123.3 123.6 Footwear 131.7 134.9 135.2 135.5 Commercial furniture 116.7 121.7 122.4 124.0 Other leather products. 113.3 117.9 118.4 118.6 Floor coverings 94.8 93.2 93.1 93.1 Household appliances 92.7 93.0 93.1 93.6 Fuels and related products, and power: Home electronic equipment 80.2 77.9 77.9 77.7 Other household durable goods. .. 125.9 131.4 131.2 131.1 Coal 111.0 115.9 120.6 123.5 Coke 117.0 120.3 126.9 126.9 Gas fuels (Jan. 1958- 19©) 120.4 123.0 128.7 128.8 Nonmetallic mineral products: Electric power (Jan. 1958= 108) 102.0 103.5 103.7 103.4 Crude petroleum 99.7 104.5 104.5 104.5 Flat glass 110.0 116.2 116.2 116.2 Petroleum products, refined 99.2 101.8 101.6 101.6 Concrete ingredients 110.2 116.5 116.6 116.7 Concrete products 109.2 113.2 113.5 113.6 Chemicals and allied products: Structural clay products excluding refractories 115.2 117.5 117.8 118.5 Industrial chemicals 97.9 98.2 97.6 97.8 Refractories 112.6 117.2 117.2 117.2 Prepared paint 115.9 119.2 120.3 120.3 Asphalt roofing 96.8 96.7 96.7 94.0 Paint materials 91.9 93.3 93.9 93.1 Gypsum products 106.2 106.1 105.9 109.8 Drugs and Pharmaceuticals 93.5 94.0 94.0 94.2 Glass containers 110.3 116.1 116.1 116.1 Fats and oils, inedible 73.4 102.1 98.9 100.5 Other nonmetallic minerals 106.8 109.6 110.6 110.6 Agricultural chemicals and products. 96.7 87.4 86.3 86.7 Plastic resins and materials 80.8 81.0 80.2 79.6 Other chemicals and products 110.2 113.9 114.3 114.9 Transportation equipment: Rubber and products: Motor vehicles and equipment 106.6 106.1 108.7 109.0 Railroad equipment (Jan. 1961= 100) 108.5 114.4 115.1 115.1 Crude rubber 86.7 90.6 89.7 88.7 Tires and tubes 99.5 99.2 100.6 101.7 Miscellaneous rubber products. 108.3 110.7 111.7 113.0 Miscellaneous products: Lumber and wood products : Toys, sporting goods, small arms, ammunition 109.2 112.1 112.3 112.8 Lumber 136.2 129.5 128.0 129.3 Tobacco products 116.5 123.8 123.8 124.0 Millwork 122.5 134.4 133.9 133.2 Notions 100.7 106.7 106.7 107.2 Plywood 112.6 94.4 95.8 99.6 Photographic equipment and supplies 113.0 113.9 114.9 115.0 Other wood products (Dec. 1966= 100) 109.2 116.5 116.7 116.7 Other miscellaneous products... 111.9 114.3 114.8 114.9 NOTE.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to classification changes. Back data not yet available for some new classiincorporate (1) new weights beginning with Jan. 1967 data and (2) various fications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 NATIONAL PRODUCT AND INCOME n JANUARY 1970 GROSS NATIONAL PRODUCT (In billions of dollars) 1968 1969 Item 1929 1933 1941 1950 1964 1965 1966 1967 1968 III IV II III Gross national product 103.1 55.« 124.5 284.8 632.4 S84.9 749.9 793.5 865.7 876.4 892.5 908.7 924.8 942.8 Final purchases 101.4 57.. 120.1 278.0 626.6 675.3 735.1 786.2 858.4 869.. 882.0 902.1 917.9 932.0 Personal consumption expenditures... 77.2 45.8 80.6 191.0 401.2 432.8 466.3 492.3 536.6 544.9 550.7 562.0 572.8 579.8 Durable goods 9.2 3.5 9.6 30.5 59.2 66.3 70.8 73.0 83.3 85.8 86.3 88.4 90.6 89.8 Nondurable goods 37.7 22.3 42.9 98.1 178.7 191. 206.9 215. 230.6 233.3 234.3 238.6 242.1 245.1 Services 30.3 20. 28. 62.4 163.3 175.5 188.6 204.2 222.8 225.8 230.1 235.0 240.1 244.9 Gross private domestic investment 16.2 1.4 17.9 54.1 94.0 108.1 121.4 116.0 126.3 125.2 133.9 135.2 137.4 143.3 Fixed investment 14.5 3.0 13.4 47.3 88.2 98.5 106.6 108.6 119.0 118.0 123.4 128.6 750.5 132.5 Nonresidential 10.6 2.4 9.5 27.9 61.1 71.3 81.6 83.7 88.8 88.1 91.5 95.3 97.4 101.1 Structures 5.0 .9 2.9 9.2 21.2 25.5 28.5 27.9 29.3 29.0 30.1 32.3 32.1 34.7 Producers' durable equipment. 5.6 1.5 6.6 18.7 39.9 45.8 53.1 55.7 59.5 59.1 61.4 63.0 65.7 66.4 Residential structures 4.0 .6 3.9 19.4 27.1 27.2 25.0 25.0 30.2 29.9 31.9 33.3 32.7 31.4 Nonfarm 3.8 .5 3.7 18.6 26.6 26.7 24.5 24.4 29.6 29.4 31.4 32.8 32.2 30.9 Change in business inventories 1.7 -1.6 4.5 6.8 5.8 9.6 14.8 7.4 7.3 7.2 10.5 6.6 6.9 10.7 Nonfarm 1.8 -1.4 4.0 6.0 6.4 8.6 15.0 6.8 7.4 7.5 10.7 6.6 6.7 10.3 Net exports of goods and services. 1.1 .4 1.3 1.8 8.5 6.9 5.3 5.2 2.5 3.6 1.2 1.5 1.6 2.7 Exports 7.0 2.4 5.9 13.8 37. 39.2 43.4 46.2 50.6 53.4 50.6 47.6 57.1 57.8 Imports 5.9 2.0 4.6 12.0 28.6 32.3 38.1 41.0 48.1 49.7 49.4 46.1 55.5 55.2 Government purchases of goods and services. 8.5 8.0 24.8 37.9 128.7 137.0 156.8 180.1 200.3 202.5 206.7 210.0 212.9 217.0 Federal 1.3 2.0 16.9 18.4 65.2 66.9 77.8 90.7 99.5 100.9 101.9 101.6 100.6 103.2 National defense 13.8 14.1 50.0 50.1 60.7 72.4 78.0 78.8 79.3 79.0 78.5 80.3 Other 3.1 4.3 15.2 16.8 17.1 18.4 21.5 22.1 22.5 22.6 22.1 22.9 State and local 7.2 6.0 7.9 19.5 63.5 70.1 79.0 89.3 100.7 101.7 104.8 108.5 112.3 113.8 Gross national product in constant (1958) dollars. 203.6 141.5 263.7 355.3 581.1 617.8 658.1 674.6 707.6 712.8 718.5 723.1 726.7 730.6 NOTE.—-Dept, of Commerce estimates. Quarterly data are seasonally see 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 III IV National income 86.8 40.3 104.2 241.1 518.1 564.3 620.6 654.0 714.4 724.1 737.3 751.3 765.7 780.6 Compensation of employees 51.1 29.5 64.8 1S4.6 365.7 393.8 435. 532.3 546.0 558.2 571.9 Wages and salaries SO.4 29.0 62.1 146.8 333.7 358.9 394. 423.5 465 470.7 482.1 493.3 504.3 516.9 Private 45.5 23.9 51.9 124.4 269 A 289.6 316.8 337.3 369 372.7 382.8 392.5 402.0 410.2 Military .3 .3 1.9 5.0 11.7 12.1 14, 16. 18.0 18.7 18.3 18.2 18.4 20.1 Government civilian 4.6 4.9 8.3 17.4 52.6 57. 63.1 70. 78.0 79.3 80.9 82.5 84.0 86.6 Supplements to wages and salaries .7 .5 2.7 7.8 32.0 41.0 43. 48.6 49.1 50.2 52.7 53.8 55.0 Employer contributions for social insurance .1 .1 2.0 4.0 15.4 16. 20. 24.4 24.7 25.3 27.3 27.9 28.6 Other labor income .6 .4 .7 3.8 16.6 18.7 20. 22. 24. 24.5 25.0 25. 26.0 26.4 Proprietors' income 15.1 5.9 17.5 37.5 52.3 57.3 61.3 61.! 63.8 64.1 64.1 64.6 66.5 67.3 Business and professional 9.0 3.3 11.1 24.0 40.2 42.4 45. 47.: 49.2 49.3 49.7 49.7 50. 50.5 Farm 6.2 2.6 6.4 13.5 12.1 14.8 16. 14.' 14.6 14.8 14.4 14.9 16.4 16.8 Rental income of persons 5.4 2.0 3.5 9.4 18.0 19.0 20. 20.8 21.2 21.2 21.4 21.5 21.6 21.7 Corporate proBts and inventory valuation adjustment 10.5 -1.2 15.2 37.7 66.3 76.1 82.4 79.2 87.9 90.6 90.3 89.5 89.2 88.8 Profits before tax 10.0 1.0 17.7 42.6 66.8 77.8 84.2 80.3 91.1 94.5 95.5 95.4 92.5 Profits tax liability 1.4 .5 7.6 17.8 28.3 31.3 34.3 33.0 41.3 41.4 42.9 43.4 43.6 42.3 Pr D of i i v ts id a e f n te d r s tax 8 5 . . 6 8 2. . 0 •* 1 4 0 . . 4 1 24 8 . . 9 8 3 1 8 7 . . 4 8 4 1 6 9 . . 5 8 4 2 9 0 . . 9 8 4 2 7 1 . . 3 5 4 2 9 3 . . 8 1 5 2 0 3 . . 0 6 5 2 1 3 . . 6 8 5 2 2 3 . . 2 8 5 2 1 4 . . 8 3 5 2 0 4 . . 2 9 Undistributed profits 2.8 5.7 16.0 20.6 26.7 29.1 25.9 26.7 26.5 27.8 28.4 27.5 25.4 -1.6 Inventory valuation adjustment .5 -2.5 -5.0 -.5 -1.7 -1.8 -1.1 -3.2 -.9 -4.2 -6.1 -6.2 -3.7 -2.1 Net interest 4.7 3.2 2.0 15.8 18.2 21.4 24.7 28.0 28.4 29.3 29.8 30.3 30.9 4.1 NOTE.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 III IV I II III 103.1 55.6 124.5 284.8 632.4 684.9 749.9 793.5 865.7 876.4 892.5 908.7 924.8 942.8 Less: Capital consumption allowances 7.9 7.0 8.2 18.3 56.1 59.8 63.9 68.6 73.3 73.7 74.6 75.9 77.2 78.6 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 58.4 62.5 65.7 70.1 77.9 79.4 81.4 83.3 85.7 88.0 Business transfer payments .( 2.5 2.7 3.0 3.2 3.4 3.4 3.5 3.5 3.6 3.6 .6 1.5 — 1.3 — 3.1 — 1.0 — 1.0 —2.5 —3.3 -3.4 -4.2 -6.5 -6.9 Plus: Subsidies less current surplus of gov —. 1 .1 1.3 1.3 2.3 1.4 .8 1.1 .9 1.1 .9 1.1 Equals: National income 86.8 40.3 104.2 241.1 518.1 564.3 620.6 654.0 714.4 724.1 737.3 751.3 765.7 780.6 Less: Corporate profits and inventory valu- 10. i I • 15.2 37.7 66.3 76.1 82.4 79.2 87.9 90.6 90.3 89.5 89.2 88.8 Contributions for social insurance.... 2.8 6.9 27.9 29.6 38.0 42.4 47.0 47.6 48.6 52.7 53.8 55.1 Excess of wage accruals over disburse- Plus: Government transfer payments g 1.5 2.6 14.3 34.2 37.2 41.1 48.8 55.8 56.7 58.1 60.1 61.3 62.5 Net interest paid by government and 2.5 1.6 2.2 7.2 19.1 20.5 22.2 23.6 26.1 26.4 27.4 27.9 28.5 28.9 5.8 2.0 4.4 8.8 17.8 19.8 20.8 21.5 23.1 23.6 23.8 23.8 24.3 24.9 Business transfer payments .6 * .8 2.5 2.7 3.0 3.2 3.4 3.4 3.5 3.5 3.6 3.6 . 7 85.9 96.0 227.6 497.5 538.9 587.2 629.4 687.9 696.1 711.2 724.4 740.5 756.5 47.0 Less: Personal tax and nontax payments.... 2.6 3.3 20.7 59.4 65.7 75.4 82.9 97.9 102.6 107.0 114.2 118.5 117.5 1.5 Equals: Disposable personal income 83.3 92.7 206.9 438.1 473.2 511.9 546.5 590.0 593.4 604.3 610.2 622.0 639.0 45.5 79.1 46.5 81.7 193.9 411.9 444.8 479.3 506.2 551.6 560.2 566.2 577.7 588.8 596.0 Personal consumption expenditures. 77.2 45.8 80.6 191.0 401.2 432.8 466.3 492.3 536.6 544.9 550.7 562.0 572.8 579.8 Consumer interest payments 1.5 .5 .9 2.4 10.1 11.3 12.4 13.1 14.2 14.4 14.7 15.0 15.2 15.4 Personal transfer payments to for- .3 .2 .2 .5 .6 .7 .6 .8 .8 .8 .7 .7 .7 .8 4.2 -.9 11.0 13.1 26.2 28.4 32.5 40.4 38.4 33.2 38.0 32.5 33.3 43.1 Disposable personal income in constant (1958) 150.6 112.2 190.3 249.6 407.9 435.0 458.9 477.7 497.6 498.9 502.1 502.6 506.2 514.1 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) 1969 Item 1967 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov." Total personal income 629.4 687.9 711.5 716.0 718.7 723.9 730.7 735.6 740.0 746.1 751.4 757.5 760.7 763.7 766.9 Wage and salary disbursements 423.5 465.0 482.2 485.8 489.3 492.6 497.9 500.8 503.8 508.5 512.8 517.9 519.9 522. 524.4 Commodity-producing industries... 166.5 181.5 187. 189.6 190.1 190.6 193.8 195.2 196. 198.3 198.9 201.0 201.5 201.8 201.4 Manufacturing only 134. 145.9 150.5 151.8 152.4 152.5 154.9 155.S 156.3 157.8 158.5 160.5 160.7 160.6 159.6 Distributive industries 100.3 109.2 113.5 113.3 114.6 115.6 116.4 117. 118.3 119.5 120.1 121.4 121.8 122.3 123.2 Service industries 70.5 78.3 82.0 83.0 84.5 85.6 86.3 86.4 87.0 87.8 88.0 88.8 89.4 90.3 91.4 Government 86.2 96.0 99.1 99.9 100.1 100.8 101.4 101.9 102.3 102.9 105.9 106.8 107.2 107.8 108.3 Other labor income. 22.1 24.2 25.0 25.1 25.3 25.5 25.6 25.8 25.9 26. 26.3 26.4 26.6 26.8 26.9 Proprietors' income 61.9 63.8 64.0 64.2 64.0 64.7 65.0 65.8 66.5 67.3 67.3 67.3 67.3 67.3 67.2 Business and professional. 47.2 49.2 49.7 49.8 49.5 49.8 49. 50.0 50.1 50.4 50.5 50.5 50.5 50.6 50.6 Farm 14.7 14.6 14.3 14.4 14.5 14.9 15.8 16.4 16.9 16.8 16.8 16.8 16.7 16.6 15.3 Rental income 20.8 21.2 21.4 21.4 21.4 21.5 21.5 21.6 21.6 21.7 21.7 21.7 21.8 21.8 21.5 Dividends 21.5 23.1 24.0 23.6 23.6 23.8 24.2 24.3 24.5 24.6 24.8 25.1 25.3 25.4 24.1 Personal interest income 48.3 54.1 56.7 57.3 57.4 57.6 58.4 58.8 59.2 59.5 59.8 60.2 60.6 61.1 57.9 Transfer payments 52.0 59.2 61.5 62. 63.0 63.5 64.7 64.9 65.2 65.7 66. 66.4 66.7 67.1 64.3 Less: Personal contributions for social insurance 20.6 22.6 23.2 23.4 25.3 25.3 25.6 25.7 25.8 26. 26.4 26.6 26.7 26.9 27.0 Nonagricultural income. 609.7 667.9 691.5 695.9 698.5 703.1 709.5 713.8 717.7 723.4 728.8 734.9 738.1 741.3 744.4 Agriculture income 19.7 20.1 20.0 20.1 20.2 20.7 21.2 21.8 22.3 22.7 22.6 22.6 22.6 22.5 22.5 NOTE.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also NOTE to table opposite. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 FLOW OF FUNDS n JANUARY 1970 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (In billions of dollars) 1967 1968 1969 Transaction category, or sector 1965 1966 1967 1968 III IV II III IV Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors 70.4 «S.5 82.fi 97.4 72.1 52.6 102.2 103.0 94.2 81.5 117.7 95.2 96.3 2 U.S. Government 1.7 3.5 13.0 13.4 10.1 -9.9 31.6 20.3 20.2 9.3 29.3 -5.5 -.4 -18.7 2 3 Public debt securities 1.3 2.3 8.9 10.3 4.6 -17.1 31.6 16.6 19.3 4.8 24.4 -7.5 -.4 -22.5 3 4 Budget agency issues .4 1.2 4.1 3.0 5.5 7.2 * 3.7 .9 4.4 4.9 2.0 -.1 3.8 4 5 All other nonfinancial sectors 68.7 64.9 69.6 »4.1 62.0 62.5 70.6 S2.7 74.0 72.3 88.4 100.7 96.7 107. S 6 Capital market instruments 39.1 39.9 48.0 50.5 39.8 43.3 53.3 55.7 48.4 44.2 50.5 59.0 56.1 55.9 7 Corporate equity shares .3 .9 2.4 -.7 .8 1.9 2.9 3.8 1.5 -.4 -1.8 -2.0 .2 1.7 8 Debt capital instruments 38.8 39.0 45.7 51.2 39.0 41.4 50.4 51.8 46.8 44.6 52.3 61.1 56.0 54.2 9 State and local govt. sec.... 7.3 5.7 7.7 9.9 7.2 8.3 6.1 9.3 7.9 5.4 12.5 13.8 11.5 11.5 10 Corporate and fgn. bonds.. 5.9 11.0 15.9 14.0 14.7 14.6 18.9 15.3 12.6 13.7 13.2 16.5 16.3 14.7 11 Mortgages 25.6 22.3 22.0 27.3 17.1 18.5 25.3 27.3 26.3 25.5 26.6 30.8 28.2 28.0 12 Home mortgages 15.4 11.4 11.6 15.2 8.0 8.7 14.1 15.7 15.0 14.6 14.6 16.6 16.3 16.2 13 Other residential 3.6 3.1 3.6 3.5 3.2 3.3 3.9 4.0 3.0 3.1 3.6 4.2 3.7 4.3 14 Commercial 4.4 5.7 4.7 6.6 4.0 4.7 4.9 5.1 6.0 5.6 6.6 8.2 5.9 5.1 15 Farm 2 2 2 1 £7. I1 2 I 1 8 I 7 2 5 ? « 2 4 X . J 1.9 1.8 2.2 2.4 16 Other private credit 29.5 25.0 21.6 33.6 22.2 19.2 17.4 27.0 25.6 28.1 37.9 41.6 40.6 51.6 17 Bank loans n.e.c 14.2 10.3 9.6 13.4 9.2 8.9 4.6 15.9 6.5 10.8 13.4 22.5 15.1 17.9 18 Consumer credit 10.0 7.2 4.6 11.1 3.2 4.0 5.5 5.2 9.1 9.5 13.0 11.9 9.9 10.4 19 Open market paper -.3 1.0 2.1 1.6 4.1 3.6 -.1 .9 1.1 -1.1 6.2 .2 5.7 5.2 20 Other 5.7 6.4 5.2 7.5 5.7 2.8 7.4 5.0 8.9 8.8 5.3 7.0 9.8 18.1 21 By borrowing sector— 68.7 64.9 69.6 84.1 62.0 62.5 70.6 82.7 74.0 72.3 88.4 100.7 96.7 107.5 22 Foreign 2.6 1.5 4.1 3.0 5.2 3.9 3.8 3.3 4.4 2.0 2.6 2.9 5.7 8.2 23 State and local governments... 7.6 6.4 7.9 10.2 7.2 8.5 6.6 9.3 8.2 5.5 12.8 14.3 12.1 11.8 24 Households 28.8 23.2 19.7 31.8 15.2 16.4 19.5 27.4 29.4 29.1 33.0 34.7 30.9 33.1 25 Nonfinancial business 29.6 33.8 37.9 39.1 34.3 33.7 40.7 42.7 32.0 35.6 39.9 48.7 47.9 54.4 26 Corporate 20.5 25.4 29.3 31.0 27.5 26.7 30.2 33.0 25.7 26.6 31.1 40.7 38.7 43.6 27 Nonfarm noncorporate 5.8 5.0 5.0 5.2 3.6 3.9 7.0 5.6 3.0 5.8 6.0 5.8 7.2 5.8 28 Farm 3.3 3.5 3.5 2.9 3.2 3.1 3.5 4.1 3.3 3.2 2.8 2.2 2.0 S.O Funds advanced directly in credit markets 1 Total funds raised 70.4 68.5 S2.6 97.4 72.1 52.6 102.2 103.0 94.2 81.5 117.7 95.2 96.3 88.8 1 Advanced directly by— 2 U.S. Government 2.8 4.9 4.6 5.2 8.1 3.9 3.4 2.9 6.1 7.1 4.8 2.9 5.1 5.9 3 U.S. Govt. credit agencies, net... • .3 .5 2 2.6 1.1 -1.5 * .5 -.1 -.5 -.8 -.2 -1.1 4 Funds advanced 2.2 5.1 -.1 3i2 1.2 -3.4 -.3 2.2 6.0 4.0 1.2 1.7 4.8 6.5 5 Less funds raised in cr. mkt... 2.3 4.8 -.6 3.5 -1.4 -4.5 1.2 2.2 5.6 4.1 1.7 2.5 5.0 7.6 6 Federal Reserve System 3.8 3.5 4.8 3.7 4.3 3.8 3.9 7.3 4.3 6.3 7.2 -2.9 .1 2.3 7 Commercial banks, net 28.3 16.7 36.8 39.0 41.0 21.5 49.6 35.0 19.4 22.8 66.7 47.1 4.6 15.3 8 Pvt. nonbank finance 30.1 25.9 36.1 33.5 30.1 41.3 44.0 28.7 33.7 34.4 32.6 33.0 31.6 35.8 9 Savings institutions, net 13.7 7.8 16.9 14.5 14.7 20.8 20.5 11.6 15.5 15.7 14.2 12.6 16.3 16.2 10 Insurance 17.9 19.3 20.4 21.5 19.0 21.7 22.6 18.5 21.5 21.0 20.5 23.0 20.8 21.0 11 Finance n.e.c, net -1.4 -1.3 -1.2 -2.5 -3.6 -1.1 .9 -1.4 -3.3 -2.3 -2.1 -2.6 -5.5 -1.4 12 Funds advanced 6.9 5.8 4.4 9.8 3.5 -5.4 15.3 3.9 3.5 8.8 19.4 7.2 -6.7 17.1 13 Less funds raised in markets, 8.3 7.1 5.6 12.3 7.1 -4.2 14.4 5.3 6.8 11.1 21.5 9.9 -1.2 18.5 14 Foreign -.3 -1.8 2.8 2.5 1.5 3.0 1.8 4.9 -.5 -2.3 3.1 9.4 -.1 .4 14 15 Pvt. domestic nonfinancial 5.6 19.1 -3.0 13.8 -15.5 -21.9 1.0 24.2 20.7 13.3 3.8 6.5 55.2 30.2 15 16 Business 1.0 3.6 * 9.0 -4.0 -6.0 .2 9.5 10.5 10.2 8.4 6.3 21.2 15.9 16 17 State and local governements. 2.5 3.4 1.2 .7 -1.2 * 1.7 4.5 .6 -1.9 3.1 .9 9.3 6.9 17 18 Households 2.5 11.9 -2.0 5.5 -11.6 -13.2 2.6 14.0 16.3 9.5 -7.0 2.8 21.8 6.8 18 19 Less net security credit -.2 2.2 1.4 -1.4 2.7 3.5 3.9 -3.3 4.5 .7 3.6 -2.8 -.6 19 Sources of funds sujplied to credit markets Total borrowing 1 by nonfinancial sectors 70.4 68.5 82.6 97.4 72.1 52.6 102.2 103.0 94.2 81.5 117.7 95.2 96.3 88.8 1 Supplied directly and indirectly by pvt. domesticnonfin. sectors:.. 2 Total 46.3 42.8 47.7 58.1 43.3 29.2 55.3 62.5 63.1 47.5 57.6 63.0 58.5 42.3 3 Deposits 40.7 23.7 50.6 44.3 58.7 51.0 54.2 38.3 32.4 34.3 53.9 56.6 3.3 12.1 4 Demand dep. and currency. 8.0 4.0 11.6 11.2 11.2 10.0 14.2 10.8 2.7 15.4 10.9 15.7 -1.9 17.6 5 Time and svgs. accounts... 32.7 19.7 39.1 33.1 47.6 41.1 40.1 27.5 29.7 18.9 43.0 40.8 5.2 -5.6 6 At commercial banks. . 19.5 12.5 22.3 20.5 30.2 21.4 22.3 15.5 16.7 6.4 31.2 27.5 -9.2 -14.3 7 At savings instlt 13.1 7.2 16.7 12.6 17.3 19.7 17.8 12.0 13.0 12.4 11.8 13.3 14.4 8 Credit mkt. instr., net 5.6 19.1 -3.0 13.8 -15.5 -21.9 1.0 24.2 30.7 13.3 3.8 6.5 55.2 30.2 9 U.S. Govt. securities 2.5 8.5 -2.8 8.9 -16.2 -18.9 8.8 15.1 14.5 4.4 6.8 9.5 21.6 -4.7 10 Pvt. credit market instr 3.5 10.4 2.0 6.3 y -.2 -4.2 12.9 12.9 13.4 -2.3 .5 30.7 34.3 11 Less security debt .3 -.2 2.2 1.4 2.7 3.5 3.9 - 3.3 4.5 .7 3.6 -2.8 -.6 Other sources: 12 Foreign funds .8 .7 5.0 4.0 * 5.1 7.2 7.5 2.1 1.8 7.1 4.9 13.6 13.3 13 At banks 1.1 2.5 2.2 1.5 -1.5 2.1 5.4 2.6 2.6 4.1 4.0 -4.5 13.7 12.9 14 Direct -.3 -1.8 2.8 2.5 1.5 3.0 1.8 4.9 -.5 -2.3 3.1 9.4 1 .4 15 Chg. in U.S. Govt. cash bal -1.0 -.4 1.2 -1.2 -1.3 -11.8 14.0 3.8 -5.3 -16.2 26.4 -9.6 -5.7 -9.2 16 U.S. Government loans 2.8 4.9 4.6 5.2 8.1 3.9 3.4 2.9 6.1 7.1 4.8 2.9 5.1 5.9 17 Pvt. insur. and pension res 15.7 16.7 18.7 18,2 17.1 19.1 19.8 18.6 16.4 17.5 19.1 19.6 15.0 20.2 18 Sources n.e.c 5.8 3.8 5.6 13.2 4.9 7.3 2.5 7.7 11.8 23.8 2.7 14.4 9.8 16.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 n FLOW OF FUNDS A 71 PRINCIPAL FINANCIAL TRANSACTIONS (In billions of dollars) 1968 1969 Transaction category, or sector 1965 1966 1967 1968 III IV Demand deposits and currency 1 Net incr. in banking system liability. 7.« 2.6 14.3 10.7 10.6 -.5 30.4 16.7 -3.7 .1 39.1 7.2 -7.9 8.0 2 U.S. Government deposits -1.0 -.4 1.1 -1.3 -1.4 -11.9 14.0 3.8 -5.6 -16.2 26.3 -9.6 -5.5 -9.1 2 3 Money supply 8.6 3.0 13.2 12.0 12.0 11.4 16.3 12.9 1.8 16.3 12.8 16.8 -2.4 17.1 3 4 Domestic sectors 8.3 3.9 12.6 12.2 12.3 10.5 15.4 12.2 1.2 17.0 13.5 17.0 -3.5 17.6 4 5 Households 7.2 3.1 11.4 6.9 6.4 10.1 12.6 16.1 -10.3 8.6 15.5 13.5 -9.0 17.6 5 6 Nonfinancial business -1.4 .7 -2.1 1.3 -4.1 -1.3 3.0 -5.8 7.1 3.5 -1.3 -4.3 5.9 -1.1 6 7 State and local governments -.2 -.4 1.1 .4 -.8 -.2 -1.2 .6 1.6 -1.9 4.1 -1.0 2.0 7 8 Financial sectors .3 1.1 1.0 .5 1.3 1.4 -1.5 1.6 2.6 1.3 -1.7 8 1 9 0 Re M st a o il f t f h lo e a t world 2. . 5 3 -1. . 0 3 2. . 7 6 - 1 .2 .9 - 8 . ' 2 .4 2. . 0 9 -1.3 .9 1 . . 7 8 5. . 2 6 - 1 .7 .7 - - 1 . . 7 4 - 2 .2 .5 2 1 . . 3 2 -.5 1 9 0 Time and savings accounts 1 Net increase—Total 33.1 20.2 40.8 33.0 49.6 44.8 40.6 28.2 29.2 19.1 43.8 39.9 5.3 -6.4 2 At commercial banks—Total. 20.0 13.3 23.8 20.6 32.0 24.3 22.6 16.3 16.3 6.2 32.3 27.5 -9.5 -15.3 4 5 3 C F St o o a r r t e p e i o g a r n n a d te l o b c u a s l i n g e o s v s ernment: 2 3 . . . 4 9 6 - 1 .7 . . 3 8 4 2 1 . . . 1 4 4 2 3 . . 2 2 * 7 5 1 . . . 8 2 2 2 3 . . 4 5 * 3 . . . 8 8 5 5 1 . . . 0 2 5 - — .1 . 8 8 .7 - — 3 1 . . 2 3 4 9 5 1 . . . 5 2 0 — 4 5 . . 1 7 1 -1 - — 6 7 . . 2 0 1 -1 -3 - 1 . . . 9 9 5 6 Households 13.3 11.9 15.8 15.1 17.2 17.9 18.0 9.9 17.6 8.3 16.5 17.8 14.0 1.1 7 At savings institutions 13.1 7.0 17.0 12.4 17.6 20.5 18.0 11.8 12.9 12.9 11.5 12.4 14.7 8.9 Liabilities— 8 Savings and loan assns.. 8.5 3.6 10.7 7.3 11.2 13.1 11.9 6.5 7.7 7.6 7.2 6.8 8.8 5.0 8 9 Mutual savings banks 3.6 2.6 5.1 4.1 5.3 6.0 5.0 4.2 4.4 4.0 3.4 4.5 4.1 2.7 9 10 Credit unions 1.0 .8 1.2 1.1 1.1 1.4 1.1 1.1 .9 1.3 .9 1.2 1.8 1.2 10 Assets 11 Households 13.1 7.2 16.7 12.6 17.3 19.7 17.8 12.0 13.0 12.4 11.8 13.3 14.4 8.8 11 12 Cr. union deps. at S & L' * -.2 .3 -.2 .3 .8 -.2 .5 -.3 -1.0 .3 .1 12 U.S. Government securities 1 Total net issues 3.8 8.7 12.6 16.7 8.7 -14.4 31.8 24.1 25.5 13.0 31.2 -3.3 4.7 -11.0 2 Household savings bonds .6 .6 .9 .5 .8 1.1 .7 .9 .2 .3 .8 .7 -.5 -.4 3 Direct excluding savings bonds .7 1.8 8.0 9.8 3.7 -18.2 30.8 15.6 19.1 4.6 23.6 -8.1 .1 -22.1 4 Budget agency issues * • .2 1.4 * .3 * .3 -.2 1.9 1.4 2.7 .3 3.9 5 Sponsored agency issues 2.1 5.1 -.6 3.2 -1.4 -4.6 .1 3.7 5.2 3.7 1.8 2.1 5.0 7.6 6 Loan participations .4 1.3 4.0 1.7 5.6 7.0 • 1 3.5 1.2 2.6 3.5 -.6 -.3 7 Net acquisitions, by sector 3.8 8.7 12.6 16.7 8.7 -14.4 31.8 24.1 25.5 13.1 31.2 -3.2 4.7 -11.0 8 U.S. Government (agency sec.) * 1.3 -.1 .1 1.6 -.1 -1.6 -.3 -.1 1.6 -.1 -1.0 -1.1 -1.0 9 Sponsored credit agencies .1 1.0 * -.1 3.4 .3 -2.1 -1.6 .1 .3 A -.5 -1.5 * 9 10 Direct marketable -.2 .3 .9 -.1 5.2 1.7 -2.1 -1.4 -.5 .2 .1 -.2 -2.2 .2 10 11 FHLB special issue .3 .6 -.9 -1.9 -1.4 * -.2 .6 .1 -.5 -.3 .6 -.3 11 12 Federal Reserve System 3.7 3.5 4.8 "i'.i 4.6 3.6 3.8 7.3 4.5 6.2 7.4 -2.8 .2 2.3 12 13 Foreign -.2 -2.4 2.1 -.5 2.1 1.9 -.1 4.5 -2.0 -4.7 .7 4.2 -4.2 -2.3 13 14 Commercial banks 2.3 -3.6 9.4 2.8 15.3 2.2 19.0 1.3 4.3 -2.1 12.2 -3.1 -6.0 -13.9 14 15 Direct 3.1 -3.4 6.3 1.7 13.1 -2.6 16.8 -2.2 3.6 -1.7 9.8 -4.8 -7.5 -15.9 15 16 Agency issues .8 -.2 3.2 1.1 2.2 4.9 2.2 3.5 .7 -.4 2.4 1.7 1.5 2.0 16 17 Nonbank finance -.1 .4 -.9 1.6 -2.1 -3.4 3.9 - 2.1 4.1 7.4 4.5 -9.7 -4.3 8.6 17 18 Direct -.6 -.2 -1.3 .3 -3.2 -4.8 4.6 -1.7 1.5 6.5 3.1 -10.0 -6.3 6.5 18 19 Agency issues .5 .5 .3 1.3 1.0 1.4 -.6 A 2.5 .9 1.4 .3 2.0 2.1 19 20 Pvt. domestic nonfin 2.5 8.5 -2.8 8.9 -16.2 -18.9 8.8 15.1 14.5 4.4 6.8 9.5 21.6 -4.7 20 21 Savings bonds—Households, .6 .6 .9 .5 .8 1.1 .7 .9 .2 .3 .8 .7 -.5 -.4 21 22 Direct excl. savings bonds.. • .7 3.3 -3.8 4.6 -16.3 -16.5 7.9 9.4 11.3 -2.0 3.0 5.7 19.4 -12.7 22 23 Agency issues 1.2 4.7 .2 3.8 -.7 -3.5 .2 4.8 3.0 6.1 3.1 3.1 2.7 8.4 23 Private securities 1 Total net issues, by sector 16.1 18.5 27.2 24.2 24.7 25.2 29.5 29.6 22.9 20.2 24.8 29.0 29.2 30.6 2 State and local governments.. 7.3 5.7 7.7 9.9 7.2 8.3 6.1 9.3 7.9 5.4 12.5 13.8 U.5 11.5 3 Nonfinancial corporations 5.4 11.4 17.0 12.1 14.5 15.5 20.2 17.7 12.8 12.8 10.3 12.4 15.0 14.8 4 Finance companies 1.9 .8 1.0 .8 1.2 .3 1.6 1.1 .9 .8 .7 .9 1.2 2.4 5 Commercial banks .1 .2 .2 .8 .1 # .1 * .7 .2 -.1 .1 .3 6 Rest of the world .5 1.3 1.3 1.0 1.0 1.6 1.4 1.4 .5 1.1 2.0 1.4 1.6 7 Net purchases 16.1 18.5 27.2 24.2 24.7 25.2 29.5 29.6 22.9 20.2 24.8 29.0 29.2 30.6 8 Households 1.1 3.2 -2.9 -3.4 -5.0 -2.3 -7.9 3.8 6.9 * -11.9 -.88 9.1 7.8 9 Nonfinancial corporations .5 1.0 -.4 .4 -3.5 .6 .6 .7 .8 2.1 -2.6 1.3 9.9 5.1 10 State and local governments.. .6 1.0 1.4 .6 1.6 .6 1.7 1.7 .3 1.0 .3 1.0 4.0 4.1 11 Commercial banks 5.0 1.9 9.7 9.0 13.6 9.1 5.8 10.5 5.2 3.2 12.6 15.2 -2.8 -2.1 12 Mutual savings banks .3 2.3 1.6 2.4 3.1 3.0 .5 2.0 1.3 1.5 1.8 1.1 1.2 13 Insurance and pension funds.. 12.9 17.4 17.5 15. 16.5 19.0 19.1 16.2 17.1 17.3 19.3 16.9 17.1 14 Finance n.e.c -2.2 -.9 -3.7 .4 -3.4 5.7 -6.4 -9.5 -6.5 5.5 -4.3 -12.9 -3.4 15 Security brokers and dealers .2 -.9 .1 -2.9 6.1 -2.5 -1.3 -7.5 8.9 -3.6 -3.3 -3.3 16 Investment companies, net.. -2.4 -1. -2.8 .3 -.4 -.3 -3.9 -8.2 1.0 -3.4 -.7 -9.6 -.1 17 Portfolio purchases 1.4 1.5 1.9 3.0 1.0 3.3 -1.3 -1.4 3.4 1.4 4.2 -.6 3.8 18 Net issues of own shares. 3.7 2.6 4.7 2.7 1.4 3.6 2.6 6.7 2.5 4.8 5.0 9.0 3.9 19 Rest of the world .3 .6 2.2 .2 .9 1.5 g 1.0 2.1 2.1 3.6 3.9 .7 Bank loans n.e.c. 1 Total net borrowing 16.6 9.0 7.5 15.7 4.9 7.8 4.8 12.4 8.0 13.6 16.1 24.8 15.7 21.9 2 Households 1.4 .4 2.1 3.0 1.8 2.1 -.8 5.5 2. 2.6 2.9 4.6 2.2 1.7 3 Nonfinancial business 12.3 10.1 7.7 10.6 8.2 7.3 4.7 10.7 4.7 8.3 10.8 18.6 13.0 15.2 4 Rest of the world.. . .4 -.2 -.2 -.6 .7 -.2 -.3 « -.3 -.7 -.1 1.0 5 Financial sectors 2.4 -1.3 -2.1 2i3 -1.0 .3 -3.5 1.5 2.8, 2.7, 2.4 .5 4.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS n JANUARY 1970 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1968 1969 Item 1966 1967 III IV III" 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 12,668 13,344 12,653 11,913 14,245 14,548 Merchandise 29,389 30,681 33,598 8,395 8,879 8,383 7,469 9,588 9,560 Military sales 829 1,240 1,427 353 406 364 418 334 421 Transportation 2,608 2,775 2,924 731 757 720 618 816 843 Travel 1,590 1,646 1,770 424 450 456 503 515 540 Investment income receipts, private 5,659 6,234 6,934 1,768 1,828 1,777 1,886 1,918 2,111 Investment income receipts, Govt 593 638 765 205 212 140 234 233 246 Other services 2,693 2,973 3,177 792 812 813 785 841 827 Import! of goods and services—Total -38,081 -41,011 -48,078 -11,827 -12,435 -12,352 -11,550 -13,942 -13,812 Merchandise -25,463 -26,821 -32,972 -8,131 -8,566 -8,458 -7,572 -9,591 -9,232 Military expenditures -3,764 -4,378 -4,530 -1,116 -1,143 -1,169 -1,204 -1,208 -1,198 Transportation -2,922 -2,990 -3,248 -786 -841 -836 -742 -876 -927 Travel -2,657 -3,195 -3,022 -732 -792 -735 -810 -844 -871 Investment income payments -2,142 -2,362 -2,933 -742 -770 -749 -892 -1,086 -1,248 Other services -1,133 -1,266 -1,374 -320 -323 -405 -330 -337 -336 Balance on goods and services' 5,279 5,177 2,516 841 909 301 363 303 73« Remittances and pensions -923 -1,196 -1,159 -274 -325 -285 -271 -286 -307 1. Balance on goods* services, remittances and pensions 4,356 3,981 1,357 567 584 16 92 17 429 2. U.S. Govt. grants and capital flow, net -3,444 -4,224 -3,955 -1,055 -968 -835 -793 -1,155 -1,052 Grants,2 loans, and net change in foreign currency holdings, and short-term claims -4,676 -5,227 -5,347 -1,365 -1,301 -1,254 -1,118 -1,515 -1,239 S N c o h n e s d c u h le e d du r l e e p d a r y e m p e a n y t m s e o n n t s U a . n S d . s G el o lo v f t f . s loans... 4 8 2 0 9 3 99 6 7 1,1 2 2 6 3 9 30 3 7 27 5 8 5 2 1 5 6 0 9 2 4 8 4 1 3 3 2 4 6 3-1 3 5 4 4 1 3. U.S. private capital flow, net -4,310 -5,655 -5,157 -1,537 -1,868 -947 -1,341 -2,002 -1,333 Direct investments -3,639 -3,154 -3,025 -1,009 -1,262 -283 -928 -1,057 -1,095 Foreign securities • -481 -1,266 -1,266 -164 -337 -455 -323 -427 -562 Other long-term claims: Reported by banks 337 255 358 49 165 133 32 131 Reported by others -112 -281 -174 -32 -57 -119 -66 -32 -15 Short-term claims: Reported by banks -84 -730 -89 194 -255 -124 -51 -533 74 Reported by others -331 -479 -960 -575 -122 30 -106 15 134 4. Foreign capital flow, net, excluding change in liquid assets in U.S 2,532 3,360 8,565 2,517 1,805 2,688 1,633 355 291 Long-term investments 2,156 2,411 5,942 1,461 1,267 1,915 1,708 396 386 Short-term claims 296 499 750 269 236 202 -76 49 101 Nonliquld claims on U.S. Govt. associated with— Military contracts 346 64 -137 6 -141 27 -80 60 -61 U.S. Govt. grants and capital -205 -84 2 15 -6 -2 -4 -8 * Other specific transactions -12 1 g -6 41 -10 -10 28 Other nonconvertible, nonmarketable, me- -20 dium-term U.S. Oovt. securities* -49 469 2,010 772 409 556 95 -171 -115 5. Errors and unrecorded transactions -489 -1,007 -642 -480 309 -60 -1,260 -1,088 -891 Balances A. Balance on liquidity basis Seasonally adjusted (= 1+2+3+4+5). -1,357 -3,544 168 9 -139 862 -1,670 -3,871 -2,555 Less: Net seasonal adjustments -96 269 124 -395 -59 368 Before seasonal adjustment -1,357 -3,544 168 105 738 -1,275 -3,812 -2,923 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted -1,357 -3,544 168 -139 862 -1,670 -3,871 -2,555 Plus: Seasonally adjusted change in liquid assets in the U.S. of— Commercial banks abroad 2,697 1,272 3,382 2,297 702 -74 2,962 4,801 1,253 Other private residents of foreign countries.. 212 414 374 103 44 223 -23 -144 -147 International and regional organizations other than IMF -525 -214 55 -86 19 43 83 Less: Change in certain nonliquid liabilities to foreign central banks and govts 761 1,346 2,341 770 529 687 37 -367 -523 Balance B, seasonally adjusted... 266 -3,418 1,638 1,553 97 367 1,144 1,236 -918 Less: Net seasonal adjustments. 3 25 442 -567 34 120 Before seasonal adjustment 266 -3,418 1,638 1,550 72 -75 1,711 1,202 -1,038 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS—Continued (In millions of dollars) 1968 1969 Item 1967 1968 III IV III* Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis 1,357 3,544 -168 -105 4D8 -738 1,275 3,812 2,923 Change in U.S. official reserve assets (increase, —) 568 52 -880 -137 -571 -1,076 -48 -299 -686 Gold 571 1,170 1,173 22 -74 -137 56 -317 -11 Convertible currencies -540 -1,024 -1,183 267 -474 -575 -73 246 -442 IMF gold tranche position 537 -94 -870 -426 -23 -364 -31 -228 -233 Change in liquid liabilities to all foreign accounts 789 3,492 712 32 979 338 1,323 4,111 3,609 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities5 -945 455 -10 * -49 -61 -25 -10 84 Marketable U.S. Govt. bonds and notess. -245 48 -379 8 -26 -2 -3 • -9 Deposits, short-term U.S. Govt. securities, etc -582 1,495 -2,707 -2,187 37 550 -1,681 -530 2,173 I C O M o th m F e m r ( g p e o r r l c i d v ia a d l t e e b p a r o e n s s k i i t d s s e ) a n b t r s o o a f d foreign countries. 2,m 1 17 1 i 7 1 1,2 4 7 1 2 2 4 2 3,3 3 - 8 3 7 2 4 2, - 2 1 1 0 0 1 5 3 95 4 4 4 • -4 2 1 2 5 3 3, - 1 2 4 3 2 1 4 - , 1 7* 4 1 4 5 1 - , 1 5 - 4 0 9 7 9 International and regional organizatio ns other than IMF -525 -214 55 -86 19 43 -88 83 B. Official reserve transactions -266 3,418 -1,638 -1,550 -72 75 -1,711 -1,202 1,038 Change in U.S. official reserve assets (increase, —) 568 52 -880 -137 -571 -1,076 -48 -299 -686 Change in liquid liabilities to foreign central banks and govts. and IMF (see detail above under A.) -1,595 2,020 -3,099 -2,190 -38 487 -1,708 -543 2,239 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S private organizations 793 894 535 150 131 138 -43 -188 -396 Of U.S. Govt -32 452 1,806 627 406 526 88 -172 -119 1 Excludes transfers under military grants. 5 With original maturities over 1 year. 2 Excludes military grants, NOTE.—Dept, of Commerce data. Minus sign indicates net payments 3 Negative entry reflects repurchase of foreign obligations previously sold. (debits); absence of sign indicates net receipts (credits). Details may not 4 Includes certificates sold abroad by Export-Import Bank, add to totals because of rounding. 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 32,018 332 322 127 75 Feb 2,353 2,582 2 775 32,297 2,013 2,216 2,592 32,655 339 366 184 -359 Mar 2,530 2,525 32,439 33,196 2,050 2,166 32,589 32,981 480 359 -150 215 Apr 2,317 2,608 32,855 33,355 2,091 2,198 32,604 33,177 226 410 251 178 May 2 416 2 549 2 740 33 292 2 061 2,118 2,755 33,276 355 432 — 15 16 2 485 2 582 2 870 33 213 2,102 2,184 2,792 33,188 383 398 78 25 July 2,469 2,601 2 858 3 172 2,216 2,245 2,725 3,066 253 357 133 106 2,460 2,566 32 950 3,385 2,137 2,145 2,872 3,180 324 421 78 205 Sept 2,503 2,597 33,211 3,326 2,288 2,198 2,951 3,055 214 399 261 271 Oct 2 616 2 415 32 631 r3 369 2,303 2,254 2,736 3,222 313 161 -105 '147 Nov 2 491 2,671 2,972 3,367 2,195 2,396 2,883 3,214 296 275 89 153 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 n 7 217 7 739 8 465 9 859 6,253 6,500 8,151 9,641 964 1,240 314 218 in 7,431 7,764 9,019 9,883 6,641 6,588 8,548 9,301 790 1,177 471 582 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 beentries into bonded warehouses. cause of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. GOLD TRANSACTIONS o JANUARY 1970 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollar* at S35 per fine troy ounce) 1968 1969 Area and country 1961 1962 1963 1964 1965 1966 1967 1968 II III IV I II III Western Europe: Austria — 143 —82 —55 -100 -25 -144 -63 -*0 -83 -58 -33 France -456 -518 -405 -884 -601 600 220 240 140 50 275 -23 -225 -1 -2 -2 —2 -52 -32 -11 3 16 Italy 100 200 -80 -60 -85 -209 -25 76 25 —60 -35 -19 30 — 156 — 146 — J30 — 32 — 180 -125 102 —81 —50 2 —30 -50 -25 —25 United Kingdom -306 -387 329 618 150 80 -879 -835 50 15 Bank for Intl. Settlements. -23 Other -53 -12 1 -6 -35 -49 16 -47 -22 -16 -8 -1 '17 -7 Total . -754 -1,105 -399 -88 -1,299 -659 -980 -669 163 213 150 -52 292 9 190 200 150 50 Latin American republics: -90 85 -30 -39 1 —25 —5 -15 —5 -10 Brazil -2 57 72 54 25 -1 • * Colombia 38 10 29 7 -25 Other -17 -5 -11 -9 -13 -6 11 -40 -7 -3 -3 -7 -5 -5 Total .. -109 175 32 56 17 -41 9 -65 -12 -18 -8 -7 -5 -15 Asia: 10 4 21 42 28 -56 -21 -32 -11 -11 -1 —95 -21 Malaysia -1 -34 -24 * 25 20 * -1 9 * 10 * 7 17 ii 48 13 50 25 25 81 23 28 11 Other -32 -47 -13 -6 -14 -ii -22 -75 -26 -28 -6 -2 -l Total -101 -93 12 3 -24 -86 -44 -366 -146 -71 -6 5 28 10 A11 other -6 1 -36 -7 -16 -22 2-166 2-68 -16 2-51 -1 -2 1 Total foreign countries -970 -833 -392 -36 -1,322 -608 -1,031 -1,118 -10 73 136 -57 316 2 Intl. Monetary Fund 3 150 4-225 177 22 -3 -11 1 1 g Grand total -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 -22 73 136 -56 317 10 1 Includes purchase from Denmark of $25 million. 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. 3 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 4 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). * Represents a $600 million IMF gold sale to United States (1957), 2 Positive figures represent purchases from the IMF of currencies of less $6 million gold purchase by IMF from another member with U.S. other members for equivalent amounts of dollars; negative figures repre- dollars (1948). sent repurchase of dollars, including dollars derived from charges on s 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 subto 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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) End of year r a T e s s o s e t e r a t v s l e To G ta o l l 2 d sto T c r k e a 1 sury cu v fo e r C r r r o e t e i n i n b g - c l n i e es p R o e s s i e t r io v n e End of month r a T e s s o s e t e r a t v l s e To G ta o l l 2 d st T oc r k ea < sury v c fo c u e C r i r r o e e t r i n s i e b g * - n l n e - p R I o e M s s in i e F t r i o v 3 n e 1956 23,666 22,058 21,949 ,608 1968—Dec.. 15,710 10,892 10,367 3,528 1,290 1957 24,832 22,857 22,781 ,975 1958 22,540 20,582 20,534 ,958 1969—Jan.. 15,454 10,828 10,367 3,338 1,288 1959 21,504 19,507 19,456 ,997 Feb.. 15,499 10,801 10,367 3,399 1,299 1960 19,359 17,804 17,767 ,555 Mar. 15,758 10,836 10,367 3,601 1,321 Apr.. 15,948 10,936 10,367 3,624 1,388 1961 18,753 16,947 16,889 116 ,690 May. 16,070 11,153 10,367 3,474 1,443 1962 17,220 16,057 15,978 99 ,064 June. 16,057 11,153 10,367 3,355 1,549 1963 16,843 15,596 15,513 212 ,035 July. 15,936 11,144 10,367 3,166 1,626 1964 16,672 15,471 15,388 432 769 Aug. 16,195 11,154 10,367 3,399 1,642 1965 15,450 4 13,806 "13,733 781 ••863 Sept. 16,743 11,164 10,367 3,797 1,782 Oct.. 16,316 11,190 10,367 3,341 1,785 1966 14,882 13,235 13,159 1,321 326 Nov. 16,000 11,171 10,367 2,865 1,964 1967 14,830 12,065 11,982 2,345 420 Dec.. 16,964 11,859 10,367 2,781 2,324 1968 15,710 10,892 10,367 3,528 1,290 ' Includes (a) gold sold to the United States by the International Mon- * Reserve position includes, and gold stock excludes, S259 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 23 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 th a e n r s a c c o t u io n n t s r i b es y p r o e U s s e i .S t r i . v o e n Period with IMF in IMF P s t u d a io b y o n s m o ll c s f a r e r i i n p s n t - s by s g N I a o M l e l e d t s F 1 T t c f i r o c u o a i r r n e n e r s s i e s g a 2 n i n n c - - I i d M n o c F i l o n la m n r e e s t D d r o a o l w l f a in rs gs R d m o e e i l p l n n a a t r y s s - c T ha o n ta g l e Amount P q e U r u o . o S c f t e . a nt p ( e e r n i d od o ) f 3 1946 1957. 2,063 4 594 -45 -2,664 827 775 775 28 1,975 1958 1963 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964 1966 776 1,640 45 -723 6 1,744 4,834 94 =326 1967 20 -114 -94 4,740 92 420 1968 -84 20 -806 -870 3,870 75 1,290 1968 Dec .. . . .. -159 4 -27 -182 3,870 75 1,290 1969 Jan 2 2 3,872 75 1,288 Feb . . 2 -13 -11 3,861 75 ) I'm Mar 2 -24 -22 3,839 74 ,321 1 -68 -67 3,772 73 ,388 May 1 -56 -55 3,717 72 ,443 5 1 -112 -106 3,611 70 ,549 July 2 -79 -77 3,534 68 ,626 -36 20 -16 3,518 68 ,642 Sept 17 3 -282 122 -140 3,378 65 ,782 Oct 1 -9 5 -3 3,375 65 ,785 Nov -268 89 -179 3,196 62 964 Dec 4 -396 32 -360 2,836 55 2,324 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 INTL. CAPITAL TRANSACTIONS OF THE U.S. a JANUARY 1970 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dolars) Liabilities to Intl. Liabilities to foreign countries Liabilities to non- Monetary Fund arising monetary intl.and from gold transactions regional organizations 5 Official nstitutionS 3 Banks and other foreigners Non- End Short- market- Shortof Total term Market- able Short- Market- term Marketperiod liabil- able convert- term able liabil- able Gold Gold ities re- U.S. ible liabil- U.S. ities re- U.S. Total de- invest- Total ported Govt. U.S. Total ities re- Govt. Total ported Govt. posit 1 ment 2 i b n a b U n y k .S s . n b o a o t n n e d d s s 4 T bo u re r n y a d s s - i p n b o a b U r n y t k e .S d s . n b o a o t n n e d s d s 4 in b a b U n y k .S s .* n b o a o t n n e d s d s * notes 1957 '15,825 200 200 n.a. 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958 '16,845 200 200 n.a. 8,665 n a n a 5 950 n a n a 552 1959 19 428 500 500 10 120 9 154 966 7 618 7 077 541 1 190 530 6*60 19608 20,994 800 800 11,078 10,212 866 7,591 7,048 543 1,525 750 775 21,027 800 800 11,088 10,212 876 7,598 7,048 550 1,541 750 791 19618 22,853 800 800 11,830 10,940 890 8,275 7,759 516 1,948 703 1,245 22,936 800 800 11,830 10,940 890 8,357 7,841 516 1,949 704 1,245 19628 24,068 800 800 12,748 11,997 751 8,359 7,911 448 2,161 1,250 911 24,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 1963B 26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 26,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 19648 28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 818 904 29,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 11,,772222 818 904 1 1 9 9 6 66 5 8 f 2 2 9 9 . '9 1 0 1 4 5 ,0 8 1 3 1 4 21 3 1 4 8 80 0 0 0 1 1 5 3 , , 3 6 7 0 2 0 1 1 3 2 , , 0 4 6 8 6 4 1,1 8 0 6 5 0 1 2 2 5 0 6 1 1 1 1 4 ,3 4 8 7 7 8 1 13 1 , , 8 0 5 0 9 6 452782 1 , 9 4 0 3 6 1 6 58 7 1 9 7 3 5 2 2 5 19678 1 /3 2 3 9 . , 2 7 7 7 1 9 , , 0 0 1 3 1 3 2 2 1 3 1 3 8 8 0 0 0 0 1 1 3 5 , , 6 6 5 5 5 3 1 1 2 4 , , 5 0 3 3 9 4 8 90 6 8 0 2 71 5 1 6 1 1 4 5 , , 2 8 0 9 8 4 1 1 3 5 , , 6 3 8 3 0 6 5 5 2 5 8 8 9 69 0 1 5 5 4 8 8 0 7 3 2 2 0 5 4 \33,I19 ,033 233 800 15,646 14.027 908 711 15,763 15,205 558 677 473 204 1968-Oct.... 33,949 ,030 230 800 12,137 10,844 531 762 20,018 19,398 620 764 696 68 Nov... 35,510 ,030 230 800 13,689 12,398 529 762 20,030 19,406 624 761 693 68 (33,821 ,030 230 800 12,548 11,318 529 701 19,518 18,909 609 725 683 42 Dec. *. \33,607 ,030 230 800 12,481 11,318 462 701 19,374 18,909 465 722 683 39 1969-Jan... 33,596 ,031 231 800 10,726 9,563 462 701 21,166 20,672 494 673 633 40 Feb... 34,265 ,031 231 800 10,778 9,643 459 676 21,817 21,315 502 639 601 38 Mar.. 34,930 ,031 231 800 10,772 9,637 459 676 22,493 21,998 495 634 596 38 Apr... 36,066 ,033 233 800 10,936 9,762 459 715 23,426 22,929 497 671 632 39 May.. 37,674 ,033 233 800 12,434 11,310 459 665 23,487 23,014 473 720 672 48 June.. 39,041 ,028 228 800 10,232 9,107 459 666 27,064 26,608 456 717 669 48 July. . 40,166 ,028 228 800 9,980 8,780 450 750 28,426 27,945 481 732 683 49 Aug.. 41,592 ,028 228 800 11,040 9,840 450 750 28,793 28,301 492 731 682 49 Sept... 42,676 ,019 219 800 12,485 11,285 450 750 28,447 27,915 532 725 676 49 Oct.*. 43,060 ,019 219 800 12,660 11,602 333 725 28,706 28,165 541 675 626 49 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 infor the purpose of making gold subscriptions to the IMF under quota in- cluded on the second line are based on a benchmark survey as of Nov. 30, creases. 1968, and the monthly transactions reports. For statistical convenience, 2 U.S. Govt. obligations at cost value and funds awaiting investment the new series is introduced as of Dec. 31, 1968, rather than as of the obtained from proceeds of sales of gold by the IMF to the United States survey date. to acquire income-earning assets. Upon termination of investment, the The difference between the two series is believed to arise from errors in same quantity of gold can be reacquired by the IMF. reporting during the period between the two benchmark surveys, from 3 Includes Bank for International Settlements and European Fund. shifts in ownership not involving purchases or sales through U.S. banks • 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. s 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 * 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • 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 n es E W ur e o st p e e r n l Canada A re m L p e u a r t b i i c l n i a c n s Asia Africa cou O n t t h r e ie r s 2 1966 13,655 7,488 1,189 ,134 3,339 277 228 1967 15,646 9,872 996 ,131 3,145 249 253 1968—Oct... 12,137 6,854 416 ,262 3,121 271 213 Nov.. 13,689 8,097 574 ,357 3,161 271 229 12,548 7,009 533 ,354 3,168 259 225 Dec. 3 12,481 7,001 532 ,354 3,122 248 224 1969—Jan.. . 10,726 5,435 564 ,350 2,929 250 198 Feb.., 10,778 5,250 512 ,414 3,069 262 271 Mar.. 10,772 5,190 466 ,373 3,206 246 291 Apr.. 10,936 5,522 446 ,445 2,951 264 308 May. 12,434 7,294 403 ,281 2,904 235 317 June. 10,232 5,298 461 ,243 2,727 232 271 July. . 9,980 5,132 426 ,292 2,616 238 276 Aug.. 11,040 5,907 451 ,391 2,790 255 246 Sept.. 12,485 7,385 397 ,339 2,875 270 219 Oct.*. 12,660 7,359 425 ,480 2,858 318 220 1 Includes Bank for International Settlements and European Fund. Nam—Data represent short-term liabilities to the official institutions 2 Includes countries in Oceania and Eastern Europe, and Western Euro- of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible 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 organizations 5 Payable in dollars IMF Deposits End of period Total 1 Total Deposits b T i c r l e U l e s r a . t S s a if u n . i r - d y s O t h e t o r h r m e t r - P f r o a e c r n y u i e n a c r i i b g - e l n s e i m n g v e o e n l s d t t 4 - Total Demand Time2 b T c i r l c e U l e a s r a . t t S s a i e f u . n s i r - d y s l O t i h e a t r o b h m r . e t 3 r - Demand Time 2 cates liab.3 1966 27,599 27,010 9,884 5,869 7,547 3,710 589 800 580 56 139 212 173 1967' ( [3 3 0 0 , , 5 6 0 5 5 7 3 3 0 0 , , 4 2 2 7 8 6 1 1 1 1 , , 7 5 4 7 7 7 5 5, , 7 7 7 8 5 0 9 9 , , 1 1 7 7 3 3 3 3 , , 7 7 2 5 7 0 2 2 2 2 9 9 8 80 0 0 0 4 47 8 3 7 6 6 7 7 1 12 2 0 4 1 17 7 8 8 1 1 1 0 8 7 1968—Nov.. 33,297 32,726 14,979 5,438 7,843 4,466 571 800 693 44 110 428 110 Dec. 31,710 31,074 14,381 5,484 6,797 4,412 636 800 683 68 113 394 108 1969—Jan... 31,668 31,163 15,658 5,489 5,422 4,594 505 800 633 59 94 361 118 Feb.. , 32,359 31,802 16,021 5,568 5,486 4,727 557 800 601 62 89 307 143 Mar.. 33,031 32,457 16,226 5,598 5,376 5,257 574 800 596 69 92 211 225 Apr.. 34,123 33,538 16,744 5,609 5,706 5,479 585 800 632 63 76 225 267 May. 35,796 35,230 16,652 5,608 7,272 5,698 566 800 672 58 70 236 307 June. 37,184 36,583 20,146 5,687 4,974 5,776 601 800 669 75 75 214 304 July.. 38,208 37,763 21,097 5,625 5,070 5,971 445 800 683 59 78 227 319 Aug.. 39,623 39,165 21,167 5,779 5,858 6,361 458 800 682 54 74 230 322 Sept.. 40,676 40,260 20,751 6,086 7,052 6,371 416 800 676 61 82 225 307 Oct.". 41,193 40,705 20,993 6,379 6,457 6,876 488 800 626 71 71 234 249 Nov.» 41,570 41,125 21,688 6,664 5,632 7,141 445 800 669 58 62 291 258 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. n JANUARY 1970 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 institutions'' Payable in dollars Payable in dollars End of period Total Dema D n e d posi T ts ime* T b c i r l c U e e l a r s a . t t s S i a e u f . s n i r - d y s O l t h i e a t o r h b r m e . t 3 r - P f r o a e c r n y u i e n a c r i b i g - e n l s e Total Dema D n e d posi T ts ime 2 T bi c r c l U e e l a s r a . t t s S e a i u f . s n i r - d y O s l t h i e a t o r h b r m e . t 3 r - cu P f r a o r y r e i e a n n i b g c l n i e es 1966 26,219 9,829 5,730 6,535 3,537 589 12,539 1,679 2,668 6,316 ,359 517 (29,370 11,680 5,656 8,195 3,610 229 14,034 2,054 2,462 7,985 ,381 152 1967« (29,232 11,510 5,655 8,195 3,643 229 14,027 2,054 2,458 7,985 ,378 152 1968—Nov 31,804 14,935 5,329 6,615 4,355 571 12,398 2,253 1,910 6,494 ,337 404 Dec 30,227 14,313 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 ,321 463 1969 Jan 30,235 15,599 5,395 4,261 4,475 505 9,563 1,941 1,938 4,125 ,221 338 Feb 30,958 15,959 5,478 4,379 4,584 557 9,643 1,844 1,927 4,265 ,219 388 Mar 31,635 16,157 5,506 4,364 5,033 574 9,637 2,012 1,876 4,218 ,143 388 Apr 32,691 16,681 5,532 4,681 5,212 585 9,762 1,869 1,894 4,531 ,080 388 May 34,324 16,593 5,538 6,236 5,390 566 11,310 1,793 1,993 6,092 ,045 388 June 35,715 20,071 5,612 3,960 5,472 601 9,107 2,037 1,982 3,819 881 388 July 36,725 21,038 5,547 4,043 5,653 445 8,780 1,892 1,872 3,872 912 232 Aug 38,141 21,113 5,705 4,828 6,038 458 9,840 2,066 1,984 4,671 887 232 Sept 39,200 20,689 6,004 6,027 6,064 416 11,285 1,993 2,123 5,895 1,042 232 Oct.1 39,767 20,922 6,308 5,423 6,626 488 11,602 1,955 2,441 5,309 ,665 232 Nov." 40,101 21,630 6,602 4,541 6,883 445 11,097 1,893 2,708 4,402 ,892 202 To banks! 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 i r c l e U e l a r s a . t t s S e i a u f s . n i r - d y s O l t h i e a t o r h b r m e . t 3 r - Total Dema D n e d posi T ts ime 2 T b c i r c l e U e l a r s a . t t s S i e a u f . s n i r - d y s O l t i h e a t o r h b r m e . t 3 r - f r o e c r u n e r c ig - ie n s 1966 13,680 9,864 6,636 1,243 137 1,848 3,744 ,513 1,819 83 329 72 19676 i ( 1 1 5 5 , , 3 2 3 0 6 5 1 1 1 1 , , 1 0 3 0 2 8 7 7 , , 9 7 3 6 3 3 1 1 , , 1 1 4 4 2 2 1 1 2 2 9 9 1 1, , 9 9 7 2 3 7 4 4 , , 1 1 2 2 7 0 , , 6 6 9 9 3 3 2 2 , , 0 0 5 5 2 4 8 8 1 1 2 3 9 0 2 2 7 7 7 7 1968—Nov 19,406 14,896 11,008 1,240 38 2,610 4,343 ,674 2,179 83 408 167 Dec 18,909 14,292 10,367 1,273 30 2,621 4,444 ,797 2,199 86 362 173 1969—Jan 20,672 16,084 11,914 1,253 29 2,889 4,421 ,744 2,204 107 366 167 Feb 21,315 16,754 12,346 1,366 41 3,001 4,391 ,770 2,186 73 362 170 Mar 21,998 17,419 12,394 1,469 42 3,514 4,392 ,751 2,161 104 374 187 Apr. 22,929 18,351 13,049 1 516 40 3,746 4,381 ,763 2 122 110 386 197 J M un ay e 2 2 6 3 , , 6 0 0 1 8 4 2 1 2 8 , , 1 5 0 2 9 0 1 1 3 6 , , 0 2 9 4 8 5 1 1 , , 4 6 7 3 3 8 3 3 5 5 3 4, , 1 9 9 1 1 5 4 4 , , 3 2 1 8 5 6 , , 7 7 0 8 3 9 2 1 , , 0 9 7 9 2 2 no 4 4 3 0 1 0 2 1 1 7 3 9 July 27,945 23,596 17,467 1,746 54 4,330 4,136 ,679 1,929 106 412 213 Aug 28,301 24,004 17,394 1,873 35 4,703 4,071 ,653 1,847 116 448 226 Sept 27,915 23,668 16,921 2,077 25 4,644 4,063 ,775 1,804 122 377 184 Oct." 28,165 23,949 17,239 2,125 22 4,563 3,960 ,728 1,742 107 396 256 Nov." 29,004 24,906 18,064 2,161 37 4,644 3,855 ,672 1,734 93 348 243 101 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- * 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- « 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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) 1968 1969 Area and country Mar. Apr. May June July Aug. Sept. Oct." Nov. v Europe: Austria 162 155 159 116 132 192 178 157 248 252 Belgium-Luxembourg 313 310 350 340 493 488 438 404 443 517 Denmark 146 124 159 245 148 136 106 114 125 151 Finland 176 151 146 116 95 90 99 98 99 115 France ,383 1,476 1,260 1,139 1,425 1,330 1,525 1,536 1,527 1,615 Germany ,640 1,064 1,597 3,653 2,116 2,057 2,677 4,234 2,898 2,006 Greece 183 170 190 176 165 199 201 184 181 201 Italy 729 633 669 628 697 754 782 812 828 733 Netherlands 276 268 302 360 276 329 342 366 738 606 Norway 448 336 334 289 257 235 264 175 203 228 Portugal 345 325 318 300 316 320 326 312 309 311 Spain 138 146 163 146 158 167 155 163 178 164 Sweden 453 419 391 319 276 210 260 209 318 399 Switzerland ,155 2,154 1,960 1,783 1,852 1,543 1,603 1,871 1,936 2,010 Turkey 29 30 28 36 28 23 20 23 35 30 United Kingdom ,133 8,868 9,657 9,684 12,380 13,375 13,300 12,680 11,954 12,680 Yugoslavia 33 21 24 22 21 27 27 37 39 40 Other Western Europe' 357 383 386 387 412 396 472 628 1,162 1,487 U.S.S.R 5 6 8 4 8 7 11 5 10 Other Eastern Europe 48 35 41 38 39 33 41 43 67 38 Total 16,170 17,074 18,141 19,780 21,293 21,912 22,824 24,059 23,295 23,593 Canada 2,797 3,061 3,093 3,253 3,084 3,450 3,578 3,380 4,183 3,843 Latin America: Argentina 479 494 521 481 426 499 446 427 442 407 Brazil 257 265 291 314 292 304 293 322 362 402 Chile 323 336 345 344 348 352 365 343 352 349 Colombia 249 229 223 229 229 223 252 244 249 245 Cuba 8 8 8 8 8 8 11 12 10 12 Mexico 974 914 886 789 798 759 764 739 790 787 Panama 154 149 158 152 150 139 130 125 119 124 Peru 276 274 273 262 252 248 231 227 220 218 Uruguay 149 151 146 145 151 144 133 125 111 106 Venezuela 792 751 753 707 704 658 725 694 661 633 Other Latin American republics.. 611 602 617 588 574 553 549 534 535 508 Bahamas and Bermuda 266 464 489 529 811 945 1,106 1,109 1,434 1,429 Netherlands Antilles and Surinam 88 95 97 99 97 93 76 77 72 74 Other Latin America 30 34 31 32 29 29 32 34 29 39 Total 4,657 4,765 4,838 4,679 4,870 4,955 5,114 5,011 5,388 5,333 Asia: China Mainland 38 38 38 38 38 37 38 36 35 37 Hong Kong 270 262 253 257 237 220 220 205 217 214 India 281 253 274 297 227 239 252 257 283 293 Indonesia 50 69 80 70 67 66 69 75 63 74 Israel 215 150 140 154 152 146 134 138 122 115 Japan 3,320 3,547 3,419 3,442 3,436 3,373 3,491 3,604 3,640 3,772 Korea 171 132 129 138 143 151 158 188 217 231 Philippines 269 264 242 213 211 221 232 234 247 226 Taiwan 155 159 160 174 189 185 189 186 182 187 Thailand 556 563 553 543 534 530 566 585 561 611 Other 628 556 547 509 502 492 529 541 547 523 Total 5,953 5,993 5,835 5,833 5,736 5,662 5,878 6,050 6,116 6,282 Africa: Congo (Kinshasa) 12 9 19 14 12 16 50 69 71 86 Morocco 13 15 17 17 18 17 16 18 18 18 South Africa 58 53 76 61 58 56 59 51 53 54 U.A.R. (Egypt) 18 19 19 24 25 22 19 19 17 19 Other 260 268 258 256 252 261 254 240 333 533 Total 361 365 390 373 365 373 399 396 492 710 Other countries: Australia 261 343 365 380 338 340 320 272 263 311 Another 28 34 30 27 30 33 28 32 31 29 Total 289 377 395 407 368 373 349 304 293 340 Total foreign countries 30,227 31,635 32,691 34,324 35,715 36,725 38,141 39,200 39,767 40,101 International and regional: International* 1,372 1,261 1,311 1,347 1,318 1,328 1,321 1,311 1,277 1,318 Latin American regional 78 96 87 90 113 118 116 114 103 99 Other regional3 33 39 34 35 38 37 45 51 46 52 Total 1,483 1,396 1,432 1,472 1,469 1,483 1,482 1,476 1,426 1,469 Grand total 31,710 33,031 34,123 35,796 37,184 38,208 39,623 40,676 41,193 41,570 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 80 INTL. CAPITAL TRANSACTIONS OF THE U.S. a JANUARY 1970 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY—Continued (Amounts outstanding; in millions of dollars) Supplementary data 4 (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 Luxembourg 31.3 (5) (s) (5) 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 64.6 Ryukyu Islands (incl.i 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 58.9 159.5 156.9 66.6 40.1 Ecuador 85.6 64.1 66.4 61.9 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 6.2 Jamaica 22.4 44.4 41.7 28.5 Ethiopia, (incl. 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 12.7 13.6 15.7 17.7 Kenya 16.4 19.8 28.6 34.1 Trinidad & Tobago 6.1 9.2 10.4 7.7 Liberia 24.9 26.4 25.2 27.8 Libya 17.9 45.0 68.9 n.a. Other Latin America: Nigeria 37.9 24.0 19.6 9.5 British West Indies 13.8 20.6 25.2 25.3 Southern Rhodesia 2.4 4.2 1.4 2.0 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 2.0 7.1 2.3 Burma 10.8 16.6 4.7 5.2 Uganda 1.4 10.0 5.8 n.a. Cambodia 1.9 2.7 2.4 2.0 Zambia 24.8 21.3 25.3 n.a. 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 n.a. New Zealand 17.5 15.4 16.8 19.6 1 Includes Bank for International Settlements and European Fund. 4 Represent a partial breakdown of the amounts shown in the "other" 2 Data exclude "holdings of dollars" of the International Monetary categories (except "Other Eastern Europe"). Fund but include IMF gold investment. 5 Included with Belgium. 3 Asian, African, and European regional organizations, except BIS and European Fund, which are included in "Europe." 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countrie Country or area To End of period Total i a n n t d l. Official Other Other All regional Total institu- Banks' foreign- Argen- Latin Israel Japan Thailand Other other tions ers tina America Asia countries 1966 1 494 506 988 913 25 50 234 8 197 140 277 133 19672 i ( 2 2 , , 5 5 6 4 0 6 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 4 3 0 5 2 2 5 5 1 1 2 2 3 3 4 4 1 1 2 2 6 6 4 4 4 4 3 3 2 2 1 1 8 8 5 5 0 0 2 2 8 8 4 9 1968 Nov 3,038 749 2,289 2,239 10 40 247 248 217 656 201 623 97 Dec 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969—Jan 3 174 785 2,389 2,346 6 38 273 250 240 658 201 647 120 Feb 3 146 787 2,359 2,315 8 36 284 247 228 658 200 613 129 Mar 3 116 777 2 338 2 298 5 36 284 243 221 658 200 607 126 3 057 781 2 276 2 234 5 37 284 205 208 658 202 592 127 May 2,976 776 2,200 2,159 5 36 284 193 189 658 202 562 112 2 947 785 2 162 2 110 18 34 284 153 189 658 199 558 120 Julv .. . 2 826 795 2 031 1,967 29 36 207 129 181 658 199 532 125 2,771 810 1,961 1,894 30 37 207 149 154 658 157 515 122 Sept 2,679 882 1,796 1,717 43 36 146 130 101 659 117 512 131 Oct p 2,549 933 1,616 1,538 43 35 72 123 43 658 117 478 125 NOV.P 2,481 905 1,576 1,497 42 36 69 145 43 658 70 474 117 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 Nov. Dec. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct." Nov.* Europe: 11 11 10 10 9 9 9 9 9 9 9 9 9 9 2 2 1 1 1 1 1 1 1 1 1 7 7 5 5 5 5 6 6 6 6 6 6 6 6 4 4 2 2 2 2 2 2 2 2 2 2 2 2 38 38 37 37 37 37 37 37 37 37 37 37 37 37 1 1 1 1 1 1 1 1 1 6 6 5 5 5 5 5 5 5 5 5 5 5 87 87 39 45 45 45 45 44 44 44 44 45 42 42 446 432 350 371 377 370 371 351 334 357 368 406 420 421 Other Western Europe 46 46 30 30 30 30 30 30 30 21 21 21 21 21 Eastern Europe 6 6 6 6 6 6 6 7 7 7 7 7 7 7 Total 654 641 488 515 520 512 514 494 477 491 502 541 553 553 375 373 384 386 387 388 388 388 387 389 389 389 271 272 Latin America: Latin American republics.. 5 5 2 2 2 2 2 2 2 2 2 2 2 2 Neth. Antilles & Surinam. 22 22 15 15 15 15 15 12 12 12 12 12 12 12 Other Latin America 1 • * • * * • • * * * * 2 Total 28 28 17 17 18 17 17 14 14 14 14 14 14 15 Asia: 10 10 9 9 9 9 10 10 10 10 10 10 10 10 2 2 2 2 2 2 2 2 2 2 2 2 Other Asia 61 61 16 15 15 15 16 16 16 16 16 16 17 15 Total 73 73 26 27 27 27 28 28 28 28 28 28 29 27 23 23 11 11 9 9 9 9 9 9 9 9 7 7 1,153 1,138 927 956 961 954 956 932 915 931 942 982 874 875 International and regional: 29 29 25 25 24 24 24 32 32 32 32 32 32 32 Latin American regional.. 39 13 13 14 14 14 15 15 15 17 17 17 17 18 Asian regional 1 1 1 1 Total 68 43 39 40 38 38 39 48 48 49 49 49 50 50 1,221 1,180 966 996 999 992 995 980 963 980 991 1,031 923 925 NOTE.—Data represent estimated official and private holdings of mar- Data shown for Dec. 1968 (second column) through latest date are based ketable U.S. Govt. securities with an original maturity of more than 1 on a benchmark survey as of Nov. 30, 1968, and the monthly transactions year. Data shown through Dec. 1968 (first column) are based on a July 31, reports. For statistical convenience, the new series is introduced as of Dec. 1963, benchmark survey of holdings and regular monthly reports of se- 31, 1968, rather than as of the survey date. See also note 9 to Table 6. curities transactions (see Table 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 gium adai m De a n rk - Italy 2 Korea S d w en e- T la h n a d i- Total A tr u ia s- Bel- m G a e n r y - 3 Italy z S er w la it n - d B.I.S. 1966 695 353 144 184 342 25 50 125 111 1967 1,563 516 314 177 1,047 50 601 125 211 1968—Dec. 3,330 ,692 1,334 20 146 100 1,638 50 1,051 226 311 1969—Jan.. 3,455 ,692 1,334 146 100 1,763 50 1,176 226 311 Feb. 3,431 ,692 1,334 146 100 1,738 50 1,126 226 337 Mar. 3,405 ,667 1,334 141 100 1,738 50 1,126 226 337 Apr. 3,568 ,666 1,334 140 100 1,902 50 1,250 226 376 May 3,518 ,666 1,334 140 100 1,852 50 1,200 226 376 June 3,269 ,416 1,084 140 100 1,853 50 1,200 226 377 July. 3,352 ,391 1,084 140 100 1,961 25 1,200 226 511 Aug. 3,251 ,390 1,084 140 100 1,861 25 1,200 125 511 Sept. 3,251 ,390 1,084 139 100 1,861 25 1,200 125 511 Oct.. 3,271 ,435 1,129 139 100 1,836 1,200 125 511 Nov. 3,097 ,431 1,129 135 100 1,666 1,000 125 541 Dec. 3,097 ,431 1,129 135 100 1,666 1,000 125 541 1 Includes bonds issued in 1964 to the Government of Canada in connec- 2 Bonds issued to the Government of Italy in connection with milition 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, 1114 11J3- pI-inU- UaJ-Wd-dra- i t11i1 oLUnG , nUlolllnEUm OaUrllkCAe.table U.S. Treasury notes amounting t,o jS1I25 2. million; end of 1968 through Sept. 1969, $84 million; and Oct. 1969 miillliliion equivalent were issued to a group of German commercial banks iini through latest date, $54 million. June 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. n JANUARY 1970 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period; in millions of dollars) 1968 1969 Area and country Dec. Mar. Apr. May June July Aug. Sept. Oct.!' Nov.1 Europe: Austria 6 3 3 12 3 4 4 5 5 6 Belgium-Luxembourg 40 46 53 55 62 49 49 53 71 57 Denmark 36 31 29 31 35 34 31 32 40 41 Finland 63 57 59 59 60 61 65 72 72 72 France 66 58 66 89 95 87 80 91 85 93 Germany 171 136 157 178 165 158 161 213 199 199 Greece 12 12 12 13 14 15 18 20 19 17 Italy 105 98 110 109 107 94 89 101 108 99 Netherlands 40 41 38 38 48 39 41 46 54 54 Norway 43 32 39 42 46 49 40 40 36 38 Portugal 10 8 9 9 12 9 9 9 9 8 Spain 46 44 47 40 51 56 49 53 70 68 Sweden 58 56 53 54 77 70 54 71 64 86 Switzerland 93 108 124 107 93 101 110 92 110 131 Turkey 38 35 31 28 29 34 30 32 31 26 United Kingdom 318 328 329 333 345 355 326 383 425 400 Yugoslavia 22 36 38 37 33 26 26 24 25 25 Other Western Europe 15 11 11 12 12 12 12 10 11 11 U.S.S.R 3 3 2 4 4 2 1 2 2 2 Other Eastern Europe 21 18 21 25 21 27 28 28 25 28 Total 1,205 1,160 1,231 1,275 1,311 1,282 1,224 1,377 1,462 1,462 Canada 533 682 737 801 739 702 724 634 746 667 Latin America: Argentina 249 254 274 266 275 284 276 297 305 301 Brazil 338 337 331 328 336 292 309 307 317 318 Chile 193 165 164 161 168 179 170 177 174 177 Colombia 206 197 208 197 200 218 210 212 215 210 Cuba 14 14 14 14 14 14 13 14 14 15 Mexico 948 971 953 958 931 941 914 833 798 775 Panama 56 58 56 55 53 58 58 69 63 69 Peru 207 181 191 188 182 177 171 168 179 173 Uruguay 44 42 41 43 44 42 43 41 43 46 Venezuela 232 203 211 212 226 238 239 237 233 228 Other Latin American republics.. 280 273 274 285 283 271 275 269 285 281 Bahamas and Bermuda 80 61 65 64 61 60 76 52 59 48 Netherlands Antilles and Surinam 19 16 11 14 13 12 12 13 14 15 Other Latin America 22 17 18 19 24 20 22 23 21 24 Total 2,889 2,789 2,812 2,804 2,809 2,806 2,786 2,712 2,721 2,680 Asia: China Mainland , , 1 1 , 1 1 1 1 1 Hong Kong 32 33 42 38 40 36 39 36 43 37 India 19 11 12 10 12 9 9 9 8 11 Indonesia 23 25 59 61 54 38 32 33 25 23 Israel 84 94 93 122 118 101 99 91 94 101 Japan 3,114 3,053 2,916 3,036 3,224 3,147 3,157 3,162 3,071 3,114 Korea 77 75 102 114 121 136 138 164 159 157 Philippines 239 269 253 256 272 274 249 242 241 232 Taiwan 38 44 47 46 44 37 38 38 39 42 Thailand 99 84 84 86 88 87 89 93 94 97 Other 145 137 152 158 179 166 165 164 190 205 Total 3,872 3,825 3,760 3,929 4,153 4,031 4,015 4,033 3,965 4,019 Africa: Congo (Kinshasa) 3 2 4 7 4 3 3 3 4 5 Morocco 2 4 3 4 3 3 3 2 3 2 South Africa 46 38 42 46 47 47 44 49 54 56 U.A.R. (Egypt) 8 8 10 11 11 13 13 12 10 11 Other 73 56 61 64 69 67 64 69 71 82 Total 133 109 120 132 133 132 127 135 141 155 Other countries: Australia 66 56 65 67 65 59 57 55 57 51 Allother 13 10 11 11 12 13 14 14 14 14 Total 79 66 75 78 77 71 71 69 70 66 Total foreign countries 8,710 8,632 8,734 9,019 9,222 9,026 8,948 8,959 9,106 9,049 International and regional * 2 1 1 1 1 1 1 1 1 Grand total 8,711 8,634 8,735 9,019 9,223 9,026 8,948 8,960 9,107 9,050 NOTE.—Short-term claims are principally the following items payable their own account or for account of their customers in the United States; on demand or with a contractual maturity of not more than 1 year: loans and foreign currency balances held abroad by banks and bankers and made to, and acceptances made for, foreigners; drafts drawn against their customers in the United States. Excludes foreign currencies held foreigners, where collection is being made by banks and bankers for by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a 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 Total Total O in t f i s f o L t i i n c t o i s u a a - l n..t B o— anks' Others C s t t o o i i a o n u l n l n g t e d - s c - - f A e o o a m i c r f g n c a a n f c e c o d e e p c r r e s t t - s - . Other Total w D e i i e t g h p n o f e s o r i r s ts - g F c a o u n p c o n v o r a a r d t i m p n e t . i i e c s g e l f r e . e s i n - - , Other 1966 7,853 7,433 3,141 256 1,739 1,145 . I 288 2,540 464 420 241 70 110 1967 2 (8,583 8,158 3,137 306 1,603 1,228 ,511 3,013 498 425 287 74 63 (8,606 8,182 3,150 306 ,616 1,228 ,552 3,013 467 425 287 70 67 1968 Nov . 8,547 8,149 3,219 220 ,811 1,189 ,697 2,747 486 398 279 52 67 Dec ... 8,711 8,262 3,166 247 ,697 1,222 ,733 2,854 509 448 336 40 72 1969 Jan 8 371 7 986 3 041 217 ,667 1 157 623 2,794 528 385 252 59 73 Feb 8 413 8 017 3 141 222 ,757 1 162 567 2 746 563 396 257 62 76 Mar 8,634 8,186 3,208 275 ,781 1,152 ,634 2,777 567 448 267 91 90 Apr 8,735 8,225 3,164 289 ,763 1,111 ,723 2,773 565 510 318 94 98 May 9,019 8,497 3,209 295 ,855 1,059 ,734 2,900 654 522 291 127 104 9,223 8,670 3,327 293 ,971 1,062 ,751 3,068 526 553 334 111 108 July 9,026 8,514 3,119 258 ,829 1,032 ,766 3,059 571 512 310 90 113 8,948 8 468 3 073 235 ,819 1,020 838 3,015 543 480 272 101 107 Sept 8 960 8,467 3 090 212 ,880 998 857 2,973 546 493 354 51 88 Oct p 9,107 8,589 3,192 263 ,922 1,007 ,894 2,940 563 518 392 46 79 Nov P 9,050 8,616 3,210 262 949 999 926 2,922 558 434 316 45 73 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 io o d f Total Loans to— O lo t n h g e - r P c fo u a r r y i e r n a i e b g n n l - e U K d n i o n i m t g e - d E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu- Banks' 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 ,556 180 449 537 1968—Nov 3,603 3,242 577 246 2,419 347 14 69 497 420 ,382 128 624 484 Dec... 3,567 3,158 528 237 2,393 394 16 68 479 428 ,375 122 617 479 1969—Jan.... 3,509 3,120 509 230 2,382 374 16 67 473 408 ,376 118 611 456 Feb.... 3,534 3,114 501 243 2,370 402 18 67 474 432 ,382 117 610 452 Mar.... 3,434 3,017 485 211 2,321 401 16 67 473 400 ,336 114 571 473 3,434 3,019 474 230 2,315 400 15 66 480 402 ,331 113 577 466 May!!! 3,454 3,057 472 236 2,349 381 17 55 488 397 ,353 112 572 477 June... 3,402 2,979 478 220 2,281 401 22 54 484 398 ,331 101 587 448 July... 3,254 2,825 446 208 2,171 408 21 54 447 390 ,294 97 570 403 Aug.... 3,288 2,860 504 211 2,145 406 21 56 436 405 ,348 95 551 395 Sept.... 3,272 2,848 485 211 2,151 408 17 55 416 403 ,334 93 562 408 Oct.?.. 3,282 2,849 492 207 2,150 417 16 56 411 410 ,343 88 572 402 Nov.*.. 3,262 2,842 494 204 2,143 404 17 55 400 407 ,354 83 572 391 1 Excludes central banks, which are included with "Official institutions." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. n JANUARY 1970 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 > securities * Foreign bonds Foreign stocks Net purchases or sales Period Pur- Net pur- Pur- Net pur- Pur- Net pur- Intl. 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 17,563 13,329 4,234 2,306 3,673 -1,367 1,566 -314 1,252 1969—Jan.-Nov.r -41 11 -52 -130 78 14,237 11,820 2,418 1,375 2,328 -954 1,782 -387 1,396 1968—Nov 2 * 2 —2 3 1,615 1 270 345 172 361 -189 155 —9 Dec -41 -26 -15 -15 1,803 1,468 334 104 166 -62 114060 179 -79 1969 Jan 30 1 29 * 29 1,661 1,124 537 164 335 -170 130 109 20 Feb 4 -1 5 -3 7 1,405 1,057 348 119 225 -106 123 191 -68 M Ap a r r -7 3 1 — 2 7 * " 2 T 1 1 , , 2 1 6 1 9 9 1,0 9 1 7 8 9 2 1 9 0 0 1 2 10 4 1 4 2 1 6 7 2 9 - — 1 7 9 7 1 1 2 0 6 2 1 1 2 3 5 7 —3 1 4 May — 15 9 —24 * —24 1,565 1 335 229 155 149 6 169 254 —85 — 17 17 — 17 1,172 1,192 —20 88 202 -115 185 293 — 108 July 17 1 16 —9 25 1 058 1 007 51 82 321 -239 117 120 — 3 11 « 11 11 1,061 941 120 75 140 —65 105 103 2 40 * 40 40 1,062 904 158 91 208 -117 104 205 -101 -108 * -108 -117 9 1,653 1,195 457 157 173 -16 130 131 -1 2 1 1 -1 2 1,214 1,068 146 98 134 -36 105 115 -10 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corporaofficial 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. Nora-^tatistics 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 et n h d e s r-Sw 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 r t o a p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e r r ies r I e n g t i l o . n & al 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 ? 1 12 1969—Jan.-Nov." 1,466 136 204 202 485 -250 279 1,055 148 135 89 5 K 34 1968—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 I960—Jan 361 9 27 8 150 1 16 211 94 30 22 4 Feb 267 9 21 3 110 2 43 188 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 30 1 8 June -105 -11 12 16 -120 -68 24 -148 15 10 15 4 July -52 5 4 24 -63 -31 -26 -87 7 3 19 6 Aug 89 76 19 -15 29 -21 40 127 -27 -21 7 3 Sept 118 21 17 32 38 -4 27 130 -3 -15 1 6 Oct.* 347 12 41 79 126 -34 22 246 32 57 6 4 Nov.*.... 112 1 30 21 36 -11 30 107 -4 4 1 « Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • 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 et n h d e s r-Sw 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 r t o a p l e Canada Am La e t r i i n ca Asia Africa co O un th tr er ies I r n e t g l. i o a n n a d l 1967 313 114 38 9 177 -337 42 43 41 31 30 34 14 121 1968 1,964 195 253 39 510 522 238 1,757 68 12 -1 • 11 117 1969—Jan.-Nov.J' 952 59 167 7 141 204 56 633 17 7 -12 n 9 297 1968 Nov 60 50 4 1 24 -2 -4 71 -5 -5 -3 4 Dec 98 9 3 * 38 34 10 93 -9 * 3 10 1 1969 Jan 176 3 3 2 52 8 33 102 4 2 * 3 66 Feb . . 81 1 3 * 7 46 -8 48 4 6 -3 10 16 Mar 191 33 43 — 1 24 9 10 119 -6 — 10 -11 -2 102 27 -1 * -2 1 34 3 36 8 8 6 -32 May 74 9 7 4 25 44 89 3 9 7 —34 85 1 2 * -4 56 -1 53 7 1 23 July 103 5 39 1 22 8 5 81 -11 -5 * 38 31 * 24 5 23 2 54 5 -15 -13 39 3 27 1 -4 -20 -6 2 -2 5 * 35 O No ct v .* .* 1 3 1 5 0 4 * 1 8 0 2 1 7 6 -13 7 7 9 3 1 2 8 4 1 -7 1 * 1 8 1 2 4 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 r o n n e n t d - l a . l c T e o f o i o u g t r n a n - l - r E o u p - e C a a d n a - A L i m a c t a e in r- Asia r A ic f- a O c t o r t u h ie n e s r - E p n er d io o d f fo b ( r a d e l u i a g e n n c e t e r o 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 — 1,682 — 329-1,352 7 —932 —300 —96 — 39 6 1967 311 298 1969-Jan.-Nov.» -1,340 62-1,402 65-1,031 -108 -329 -6 6 1968—Mar 351 269 June 453 372 1968—Nov -198 -58 -140 41 -101 -60 -26 3 2 Sept 468 398 Dec -141 -6 -135 -68 -21 -5 -35 4 -6 Dec 636 508 1969—Jan -150 -32 -118 13 -124 « -4 -1 3 1969—Mar 553 396 Feb -175 -5 -170 3 -163 4 -9 * 2 June 566 401 Mar -18 102 -120 22 -20 -60 -45 -6 -11 Sept.* 467 297 Apr -112 8 -119 -22 -63 -14 -21 * 1 May -79 3 -83 -16 -43 2 -26 * 1 June -223 4 -227 -21 -164 — 1 -41 * 1 NOTE.—Data represent the money credit balances and July -241 -11 -230 -1 -211 -6 -15 * 3 money debit balances appearing on the books of reporting Aug -63 -6 -57 9 -50 -16 — 1 — 1 2 brokers and dealers in the United States, in accounts of Sept -217 -9 -208 16 -131 -97 * 3 foreigners with them, and in their accounts carried by Oct.* -17 4 -22 53 -21 -12 -43 2 -1 foreigners. Nov.*. .. -46 3 -49 15 -41 1 -26 * 1 A Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. a JANUARY 1970 21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 22. MATURITY OF EURO-DOLLAR DEPOSITS IN FOREIGN (In millions of dollars) BRANCHES OF U.S. BANKS Wednesday Amount Wednesday Amount Wednesday Amount (End of month) Amounts, 1966 1968 1969—Cont. billions of dollars Maturity of Jan. 26 1,688 Jan. 31 4,259 liability Feb. 23 1,902 Feb. 28 4,530 July 2 12,826 Aug. Sept. Oct. Mar. 30 1,879 Mar. 27 4,920 9 13,833 A M p a r y . 2 2 7 5 2 1 , , 0 9 0 0 3 9 A M p a r y . 2 2 9 4 5 5 , ,0 8 2 7 0 2 2 3 1 3 0 6 1 1 1 4 4 4 , , ,2 3 4 6 6 3 1 9 4 cau ;.::.:: 1 1 . . 4 9 1 3 1 1 . . 2 8 9 3 0 1 . . 7 8 8 0 June 29 1,951 June 26 6,202 Other liabilities, maturing July 31 6,126 Aug. 6 14,177 in following calendar J A S u e u l p y g t . . 3 2 2 1 8 7 2 3 3 , , , 7 1 4 8 3 7 6 4 2 A S O e u c p t g t . . . 2 2 3 8 5 0 7 7 7 , , , 0 0 1 4 0 0 1 4 4 2 2 1 0 7 3 1 1 1 4 4 4 , , , 7 6 3 7 5 0 6 8 4 m da o 2 1 t n e n s t : t d hs after report 6 4 . . 4 3 8 4 7 3 . . 1 7 6 6 4 6 . . 4 6 6 0 O N c o t v . . 2 3 6 0 3 3 , , 6 7 7 8 1 6 N De o c v . . 2 2 7 5 7 6 , , 1 9 7 4 0 8 Sept. 1 3 0 1 1 4 4 , , 5 9 7 1 1 9 3 4 r th d 2 1 . . 8 6 2 9 3 1 . . 5 4 6 5 4 1 . . 0 2 8 7 Dec. 28 4,036 17 14,593 5th 1.07 1.00 1.56 1969 24 14,349 6th 0.88 1.40 0.85 1967 7th 0.46 0.27 0.32 Jan. 29 8,545 Oct. 1 14,118 8th 0.25 0.29 0.44 J F a e n b . . 2 2 2 5 3 3 , , 3 6 9 5 6 3 Feb. 26 8,822 1 8 5 1 1 4 4 , , 6 9 0 7 9 0 1 9 0 t t h h 0 0. . 3 2 5 7 0 0 . . 4 2 1 6 0 0 . . 3 1 1 3 Mar. 29 3,412 Mar. 26 9,621 22 14,310 11th 0.27 0.12 0.10 A M p a r y . 2 3 6 1 3 2 , , 0 7 4 7 7 6 Apr. 1 9 2 6 9 9 9 , , , 5 2 6 1 0 9 1 6 4 Nov. 2 5 9 1 1 4 3 , , 4 6 1 4 5 9 Ma y t e 1 u a 2 r r t i h ties of more than 1 0 0 . . 1 2 1 8 0 0 . . 0 3 8 1 0 0. . 2 1 9 5 June 28 3,166 23 10,281 12 14,369 July 26 3,660 30 9,399 2 1 6 9 '1 1 4 5 , , 9 0 0 4 3 8 Total 22.6223.19 23.16 Aug. 30 3,976 May 7 9,977 S N O e o c p t v t . . . 2 2 2 9 7 5 4 4 4 , , , 2 0 3 0 5 2 6 9 2 2 2 1 1 8 4 1 9 9 0 , , , 5 8 0 4 6 9 5 8 5 Dec. 2 1 1 3 4 0 7 1 1 1 1 4 4 4 4 , , , , 8 5 4 6 1 9 3 1 5 6 0 4 d th e e N p o O B s T i a t E h s a .— a m n I a d n s c d l a i u r n d e d e c s t o b i f n o t r a e r l r l o e w o st t i - n h b g e e r s a r o f i o f n r g a e l i l g U b n r . S a b . n r c a d h n o e c l s h l a e i r n s Dec. 27 4,241 June 4 10,808 31 13,036 for which such deposits and direct borrowings 11 11,852 amount to $50 million or more. 18 13,057 Details may not add to totals due to rounding. 25 13,269 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. 23. DEPOSITS, U.S. GOVT. SECURITIES, 24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGNERS (In millions of dollars) fin millions of dollars) Payable in Assetsin custody Payable in dollars foreign currencies End of period Deposits End of United U.S. Govt Earmarked period Total Short- Short- King- Canada securities 1 gold term term dom Deposits invest- Deposits investments1 ments 1 1966 174 7,036 12,946 1967 135 9,223 13,253 1966 971 757 48 109 59 441 301 1968—Dec... 216 9,120 13,066 19672 ( ,078 768 133 127 49 537 309 ,163 852 133 128 49 621 309 1969—Jan.... 126 7,893 13,132 Feb.. . 121 8,062 13,160 1968—Oct ,768 ,393 95 229 51 1,134 242 Mar... 164 8,012 13,176 Nov.. ,829 ,398 106 265 60 1,155 261 130 8,526 13,128 Dec... 1,638 ,219 87 272 60 979 280 May!! 107 10,035 13,037 June.. 155 7,710 13,039 1969—Jan.'. ,785 ,350 110 245 79 1,076 342 July... 158 7,419 13,050 Feb.'. 1,867 ,388 128 243 108 1,099 411 Aug... 143 8,058 13,033 Mar.' 1,865 ,361 111 261 132 1,065 462 Sept... 143 9,252 13,004 Apr.'. 1,833 ,320 125 268 121 1,028 468 Oct.... 131 8,447 12,979 May'. 1,949 ,382 104 347 116 1,026 527 Nov... 130 7,533 12,998 June'. 1,787 ,223 123 347 93 957 453 Dec... 133 7,030 12,311 July.. 1,778 ,232 113 313 120 987 450 Aug.' 1,699 ,210 96 293 99 966 410 Sept.' 1,592 ,099 100 303 90 912 360 1 U.S. Treasury bills, certificates of indebtedness, Oct... 1,627 1,191 92 279 65 951 371 notes, and bonds; includes securities payable in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand NOTE.—Excludes deposits and U.S. Govt. securities or having a contractual maturity of not more than 1 year from the date on which the held for international organizations. Earmarked gold obligation was incurred by the foreigner. is gold held for foreign and international accounts and 2 Data on the two lines for this date differ because of changes in reporting coverage. is not included in the gold stock of the United States. Figures on the first line are comparable in coverage with those shown for the preceding date; figures on the second line 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 26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 25. 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 June' Sept. Dec.' Mar. June Juner Sept. Dec' Mar.' June Europe: 3 2 3 4 6 6 5 5 5 47 60 78 79 67 54 68 49 61 52 g 8 4 2 2 9 10 12 12 12 Finland 4 4 4 * • 9 9 9 g 7 92 114 114 116 121 136 157 145 140 162 125 150 120 112 102 127 174 204 153 193 IS 14 11 5 24 26 27 22 24 Italy 60 64 63 57 54 119 130 124 119 148 84 65 42 49 45 86 67 54 59 62 Portugal . 4 6 5 8 4 4 7 6 1 7 4 1 g 0 1 g 0 1 7 0 172 1 11 4 Spain SO 48 37 40 47 72 76 71 85 81 Sweden 24 26 25 20 17 26 26 26 25 26 Switzerland 70 112 116 115 116 32 71 39 49 44 3 3 5 5 4 9 7 6 13 14 284 407 393 384 354 1,537 1,450 1,221 1,306 1,234 1 1 1 1 1 g 4 7 g 14 6 5 9 13 17 13 15 16 17 17 Eastern Europe 1 1 2 2 1 10 6 8 12 12 Total 887 1,096 1,034 1,017 979 2,292 2,318 2,040 2,112 2,132 Canada 199 199 194 164 159 559 501 540 724 713 Latin America: 6 7 6 8 5 31 36 46 45 42 Brazil . . 18 19 16 17 15 87 102 91 90 90 Chile . . .. 12 6 5 4 4 30 38 36 39 38 9 7 7 7 6 25 25 29 26 27 Cuba * * * * 2 2 2 2 2 9 9 6 7 11 83 94 103 111 112 3 5 3 4 3 12 15 15 14 17 Peru 5 6 7 7 8 28 28 26 28 26 1 1 1 1 1 5 4 6 5 4 35 36 33 27 26 59 57 67 60 70 Other L A republics 18 23 20 16 18 63 72 82 78 85 12 10 18 19 19 36 46 66 66 38 4 4 5 3 2 6 5 6 6 Other Latin America 2 1 2 2 8 8 9 11 14 Total 133 134 130 122 121 474 532 584 579 570 Asia: 4 4 5 4 5 10 10 8 9 11 India . . .. 14 10 12 15 18 37 39 34 32 40 5 3 4 5 6 6 7 7 8 7 Israel 17 15 17 13 11 10 9 6 11 13 78 91 89 99 114 175 195 207 200 212 1 1 2 1 14 18 21 22 24 8 10 9 8 11 22 21 25 25 25 4 3 5 5 5 12 12 19 19 19 Thailand... . .. 2 2 2 2 15 15 16 13 12 Other Asia 45 36 31 41 50 90 97 134 120 104 Total 176 175 176 195 223 392 423 477 460 466 Africa: 1 1 1 2 5 3 2 3 3 South Africa 6 12 11 9 14 16 19 31 27 27 U.A.R. (Egypt) 6 4 5 5 2 6 6 7 7 8 Other Africa 12 8 8 14 51 37 37 37 42 43 Total 24 25 24 29 68 64 65 76 78 81 Other countries: 46 43 45 44 46 62 58 54 56 53 All other 7 6 5 5 3 10 9 11 9 7 Total ... . . . .. 53 49 49 50 50 72 68 65 65 60 International and regional * * * * • 1 1 1 2 2 1,473 1,678 1,608 1,576 1,601 3,855 3,907 3,783 4,018 4,024 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. ° JANUARY 1970 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (In millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y i ll n a a b r l s e cu P fo r a r r y i e e n a n i b g c n l i e es Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter's name . 1965 June 740 568 172 2,411 1,966 198 248 779 585 195 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 2,033 211 229 894 657 237 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 1,203 916 287 2,585 2,110 199 275 Sept 1,353 1,029 324 2,555 2,116 192 246 Dec 1 371 1 027 343 2,946 2,529 201 216 Dec.' 1,386 1,039 347 3,011 2,599 203 209 1968 Mar ' 1,358 991 367 3,369 2,936 211 222 Juner 1,473 1,056 417 3,855 3,415 210 229 1,678 1,271 407 3,907 3,292 422 193 Dec ' 1,608 1,225 382 3,783 3,174 368 241 1969 Mar 1,576 1,185 391 4,018 3,334 357 327 June 1,601 1,248 354 4,024 3,283 463 278 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (In millions of dollars) Claims Country or area Total End of period liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n r ca Japan O A t s h i e a r Africa o A th l e l r 1965 June 110 1.081 31 118 208 221 70 144 85 96 91 17 Sept 120 ,101 31 116 230 217 74 138 89 96 91 18 Dec 136 ,169 31 112 233 209 69 196 98 114 89 17 Dec.' 147 ,139 31 112 236 209 65 198 98 87 85 18 1966—Mar 176 ,156 27 124 239 208 61 206 98 87 87 19 188 ,207 27 167 251 205 61 217 90 90 86 14 Sept 249 ,235 23 174 267 202 64 207 102 91 90 14 Dec 329 ,256 27 198 272 203 56 212 95 93 87 13 1967—Mar 454 ,324 31 232 283 203 58 210 108 98 84 17 430 ,488 27 257 303 214 88 290 110 98 85 15 Sept 411 452 40 212 309 212 84 283 109 103 87 13 Dec 414 ,537 43 257 311 212 85 278 128 117 89 16 Dec.' 428 ,570 43 263 322 212 91 274 128 132 89 16 1968—Mar ' 582 ,536 41 265 330 206 61 256 128 145 84 21 747 ,568 32 288 345 205 67 251 129 134 83 33 Sept.' 767 ,625 43 313 376 198 62 251 126 142 82 32 Dec r 1,100 ,784 147 312 420 194 73 231 128 156 83 38 1969 Mar ' 1,256 ,854 175 348 422 194 75 224 126 176 72 43 1,299 !961 168 374 447 195 76 217 142 229 72 41 * Data differ from that shown for Dec in line above because of changes in reporting coverage. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 a MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Ar ( g p e e n s t o in ) a (s A ch u i s l t l r in ia g) B (f e r lg a i n u c m ) C (d a o n ll a a d r a ) ( C ru ey p l e o e n ) D ( e k n r m on a e r ) k (m Fi a n r la k n k d a) (pound) (dollar) 1965 .59517 222.78 3.8704 2.0144 92.743 20.959 14.460 31.070 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 1969 .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 1968—Dec. .28500 110.82 3.8681 1.9935 93.177 16.678 13.340 23.763 1969—Jan.. .28512 110.95 3.8670 1.9921 93.206 16.678 13.317 23.763 Feb. .28490 111.15 3.8650 1.9928 93.060 16.678 13.288 23.772 Mar. .28489 111.17 3.8671 1.9883 92.863 16.678 13.321 23.785 Apr. .28490 111.24 3.8669 1.9890 92.903 16.678 13.285 23.785 May .28490 110.93 3.8646 1.9925 92.837 16.694 13.269 23.785 June .28490 111.07 3.8647 1.9868 92.628 16.795 13.282 23.785 July. .28490 111.11 3.8664 1.9889 92.526 16.785 13.282 23.771 Aug. .28490 110.87 3.8668 1.9885 92.743 16.784 13.282 23.785 Sept. .28490 110.81 3.8637 1.9869 92.732 16.784 13.287 23.785 O N De o c c t v . . . . . . . 2 2 2 8 8 8 4 4 4 9 9 9 0 0 0 1 1 1 1 1 1 1 1 1 . . . 4 3 1 3 8 0 3 3 3. . . 8 8 8 6 6 6 2 4 5 1 4 2 2 2 2 . . . 0 0 0 1 1 0 2 2 2 1 5 3 9 9 9 2 3 2 . . . 9 0 7 4 8 6 1 3 2 1 1 1 6 6 6 . . . 7 7 7 7 8 8 2 4 4 1 1 1 3 3 3 . . . 3 3 2 4 3 9 8 4 7 2 2 2 3 3 3 . . . 7 7 7 4 4 7 8 8 3 Period F (f r r a a n n c c e ) ( G d m e e r u a m t r s k a c n h ) y e (r I u n p d e ia e) ( I p r o e u la n n d d ) ( I l t i a ra ly ) J ( a y p en an ) M (d a o l l a l y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e - r s ) 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 1969 319.302 425.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1968—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. 318.627 25.083 13.218 238.53 .15915 .27810 32.605 8.0056 27.635 Sept. 18.005 25.236 13.214 238.40 .15885 .27908 32.629 8.0056 27.659 Oct.. 17.907 426.801 13.217 239.02 .15923 .27911 32.659 8.0056 27.804 N De o c v . . 1 1 7 7 . . 9 92 5 8 2 2 2 7 7 . . 1 1 0 3 1 1 1 1 3 3. . 2 2 3 3 1 2 2 2 3 3 9 9 . . 7 6 3 3 . .1 1 5 5 9 9 7 4 1 8 . . 2 2 7 7 9 9 5 5 1 3 3 3 2 2 . . 6 4 6 8 1 1 8 8 . . 0 0 0 0 5 5 6 6 2 2 7 7 . . 7 6 4 2 8 2 Period (pou N n e d w ) Zea ( la d n o d llar) N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o f a r u n i t c d h a ) (p S e p s a e i t n a) S (k w r e o d n e a n ) ( e S f r r w l a a i n n tz c d - ) ( U p K d o n i o u n it m n g e d - d ) 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 .6651 19.358 23.114 279.30 1967. 276.69 6131.97 13.985 3.4784 139.09 .6383 19.373 23.104 275.04 1968., 111.37 14.000 3.4864 139.10 .4272 19.349 23.169 239.35 1969. 111.21 13.997 3.5013 138.90 .4266 19.342 23.186 239.01 1968—Dec... 110.93 14.000 3.4886 138.56 .4279 19.323 23.259 238.42 1969—Jan.. . 111.06 13.988 3.4925 138.72 .4278 19.340 23.146 238.70 Feb... 111.27 13.988 3.4975 138.98 .4279 19.326 23.145 239.14 Mar.. 111.28 14.001 3.5042 138.99 .4277 19.340 23.261 239.17 Apr... 111.35 14.007 3.5036 139.08 .4271 19.350 23.135 239.31 May.. 111.04 13.999 3.4985 138.69 .4262 19.337 23.117 238.65 June.. 111.18 14.014 3.4989 138.87 .4260 19.327 23.176 238.95 July.. 111.22 14.005 3.5011 138.92 .4267 19.337 23.197 239.04 Aug.. 110.99 13.998 3.5031 138.62 .4277 19.345 23.228 238.53 Sept.. 110.92 13.989 3.5029 138.54 .4276 19.330 23.265 238.40 N D O e o c c t v . . . . . . . . 1 1 1 1 1 11 1 1 . . . 2 5 5 1 0 4 1 1 1 4 3 3 . . . 0 9 9 8 0 8 9 0 6 3 3 3 . . . 5 5 5 0 0 0 5 3 3 9 8 2 1 1 1 3 3 3 8 9 9 . . . 9 3 2 1 2 6 . . . 4 4 4 2 2 2 4 3 6 8 0 2 1 1 1 9 9 9 . . . 3 3 3 6 5 5 5 2 4 2 2 23 3 3 . . . 2 2 1 0 2 1 3 9 8 2 2 2 3 3 3 9 9 9 . . . 7 6 0 3 3 2 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 6 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. 3 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to NOTE.—After the devaluation of the pound sterling on Nov. 18, 1967. 5.55 francs per U.S. dollar. the following countries devalued their currency in relation to the U.S. * Effective Oct. 26, 1969, the new par value of the deutsche mark was dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. set at 3.66 per U.S. dollar. Averages of certified noon buying rates in New York for cable transfers. 5 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to For description of rates and back data, see "International Finance," 7.5. rupees per U.S. dollar. Section 15 of Supplement to Banking and Monetary Statistics, 1962. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 MONEY RATES • JANUARY 1970 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Rate as of Changes during the last 12 months Dec. 31, 1968 Rate Country 1969 as of Dec. 31, Per Month 1969 cent effective Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 6.0 Dec. 1957 6.0 3.75 Oct. 1967 4.75 4.75 4.5 Dec. 1968 5 0 5.5 6 0 7.0 7.5 7.5 22.0 Jan. 1967 20.0 20.0 4.0 Feb. 1962 4.0 Canada i 6.5 Dec. 1968 7.0 7.5 8.0 8.0 Ceylon 5.5 May 1968 5.5 Chile 12.0 July 1968 13.0 14.0 14.0 8.0 May 1963 8.0 4.0 June 1966 4.0 6.0 Aug. 1968 7 0 9 0 9.0 5 0 Nov 1956 5.0 El Salvador 4.0 Aug. 1964 4.0 Finland.... 7.0 Apr 1962 7.0 6.0 Nov. 1968 7.0 8.0 8.0 Germany, Fed. Rep. of. 3.0 May 1967 4.0 5.0 6.0 6.0 Ghana 5.5 Mar. 1968 5.5 Greece 5.0 July 1968 5.5 6.0 6.0 3.0 Jan. 1962 3.0 Iceland 9.0 Jan. 1966 9.0 India 5.0 Mar 1968 5.0 9.0 Aug. 1963 9.0 7.0 Nov. 1968 8.6 8.0 Ireland 7.17 Dec. 1968 7.12 8.0 8.75 8.38 8.5 8.44 8.38 8 25 8.25 Israel 6.0 Feb. 1955 6.0 Italy 3.5 June 1958 4.0 4.0 5.0 Sept. 1968 5.5 6.0 6.0 5.84 Aug. 1968 6.25 6.25 Korea 28.0 Dec. 1965 26.0 26.0 Mexico 4.5 June 1942 4.5 5.0 Dec. 1968 5.5 6.0 6.0 New Zealand 7.0 Mar. 1961 7.0 6.0 Apr. 1954 6.0 3.5 Feb. 1955 4 5 4.5 Pakistan . 5 0 June 1965 5.0 9 5 Nov 1959 9.5 7.5 Feb 1968 8.0 10.0 10.0 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 5.0 Oct. 1968 6 0 7 0 7.0 3.0 July 1967 3 75 3.75 11.9 Aug. 1968 10 8 10.8 5.0 Oct. 1959 5.0 5.0 Sept. 1966 5.0 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom 7.0 Sept. 1968 8 0 8.0 4.5 Dec. 1960 5.5 5.5 > 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 Rate shown is for advances only. (rate shown is for agricultural and industrial paper); Ecuador—6 per cent for bank acceptances for commercial purposes; NOTE.—Rates shown are mainly those at which the central bank either Indonesia— Various rates depending on type of paper, collateral, comdiscounts or makes advances against eligible commercial paper and/or modity involved, etc.; govt. securities for commercial banks or brokers. For countries with Japan—Penalty rates (exceeding the basic rate shown) for borrowings more than one rate applicable to such discounts or advances, the rate from the central bank in excess of an individual bank's quota; shown is the one at which it is understood the central bank transacts Peru—5 and 7 per cent for small credits to agricultural or fish production, the largest proportion of its credit operations. Other rates for some import substitution industries and manufacture of exports; 8 per cent for of these countries follow: other agricultural, industrial and mining paper; Argentina—3 and 5 per cent for certain rural and industrial paper, de- Philippines— 6 per cent for financing the production, importation, and dispending on type of transaction; tribution of rice and corn and 7.75 per cent for credits to enterprises en- Brazil—t per cent for secured paper and 4 per cent for certain agricultural gaged in export activities. Preferential rates are also granted on credits to paper; rural banks; and Chile—17 percent for forestry paper, preshipment loans and consumer Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. loans, 18 per cent for selective and special rediscounts, 19.5 per cent for 1962), and 5 per cent for advances against govt. bonds, mortgages, or gold, cash position loans, and 23.5 per cent for construction paper beyond a and 6 per cent for rediscounts of certain industrial paper and on advances basic rediscount period. A fluctuating rate applies to paper covering the against securities of Venezuelan companies. acquisition of capital goods. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 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 i n tz d er- Month 3 T m r b e o i a l n s ls u t , h ry s! D m a o d y n a - e y t y o - 2 3 B a a m a c n n c o c e k n e p e s t r t h , - s s ' 3 T m r b e i a o l s n ls u t , r h y s D m a d o y a n - y e to y - a B d llo e a p w n o o k n a s e n i r t c s s e ' D m a o d y n a - e y t y o s - T 6 r d b e 0 a i a - l y s l 9 s s u 0 , 4 ry D m a o d y n a - e y t y o s - T 3 r m b e i a o l s n ls u t , r h y s D m a d o y a n - y e to y - d P is r r c i a v o t a u e t n e 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 4.51 4.05 3.75 1968—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 9.23 4.75 5.80 5.50 7.17 4.25 Aug 7.65 7.57 8.88 7.80 6.95 6.00 8.84 4.75 5.87 5.98 7.71 4.25 Sept 7.75 7.77 8.88 7.80 7.07 6.00 9.39 5.75 4.03 6.00 7.66 4.38 Oct 7.68 7.71 8.88 7.73 7.02 6.00 9.37 5.75 6.68 5.88 3.80 4.75 Nov 7.71 7.78 8.88 7.72 6.85 6.00 5.75 7.65 5.95 5.55 4.75 1 Based on average yield of weekly tenders during month = Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. NOTE.—For description and back data, see "International Finance," 4 * R R a a t t e e i s n h o e w ffe n c t i s a o t n e n p d ri v o a f t m e s o e n c t u h r . ities. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date q K ( u U a in U o d n g t j . i a S . d t t e . o t i d o o m n U S n ta i t t e e s d L S ( o f p a n o r v d e f o a o r d n) P d f ( ( o r p i - + s e r ) o c m w o u ) o n o a n i u u r d n r m d t i L n ( o c f N e n a o n v d e f t o t o i r v n e ) qu A ot s ed Canad A a U dj .S . . to U S n ta it te e s d C S ( a f p a n o r v a e f o a d r d a) C P d f ( ( d o r a i - + s e r o n c m ) w l a ) o l o a a o d i u u n r r i r n a m s d t n i C n ( c a f N a e n o v n e a f o t t d i r v a e ) basis) in quotation Canada basis 1969 Aug. 1 7.64 7.01 .63 -2.60 -i.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 S«*-,i 7.58 7.02 .56 -8.92 -8.36 7.73 7.49 7.02 .47 + .61 +1.08 2 1 6 9 7 7 7 . . . 5 6 5 8 4 8 7 7 7 . . . 0 1 0 3 0 3 . . . 6 4 5 1 8 5 - - - 4 7 6 . . . 5 9 0 8 2 0 - - - 4 5 7 . . . 3 0 5 1 3 2 7 7 7 . . . 7 7 7 5 7 2 7 7 7 . . . 5 5 4 1 3 8 7 7 7 . . . 0 0 1 3 3 0 . . . 4 4 5 1 5 0 + + + . . . 6 3 3 1 9 9 + + + 1 . . . 0 8 8 6 0 9 Oct. 3 7.57 6.97 .60 -2.56 -1.96 7.77 7.53 6.97 .56 + .52 +1.08 10 7.55 6.98 .57 -2.47 -1.90 7.69 7.45 6.98 .47 + .61 +1.08 17 7.61 6.99 .62 -1.52 -.90 7.64 7.40 6.99 .41 + .56 + .97 24 7.61 6.95 .66 -1.38 -.72 7.62 7.38 6.95 .43 + .19 + .62 31 7.61 6.98 .63 -1.27 -.64 7.62 7.38 6.98 .40 + .02 + .42 Nov. 7 7.58 7.09 .49 -.79 -.30 7.67 7.43 7.09 .34 -.04 + .38 14 7.58 7.14 .44 -.66 -.22 7.67 7.43 7.14 .29 -.13 + .16 21 7.58 7.31 .27 -.69 -.42 7.72 7.48 7.31 .17 + .09 + .26 28 7.58 7.49 .09 -.51 -.42 7.75 7.50 7.49 .01 + .09 + .10 Dec. 5 7.61 7.56 .05 -.17 -.12 7.77 7.53 7.56 -.03 + .04 + .01 12 7.58 7.72 -.14 -.37 -.51 7.77 7.53 7.72 -.19 + .09 -.10 19 7.55 7.80 -.25 -.38 -.63 7.78 7.53 7.80 -.27 + .09 -.18 23 7.55 7.78 -.23 -.38 -.61 7.78 7.53 7.78 -.25 + .09 -.16 31 7.49 7.98 -.49 -.55 -1.04 7.82 7.57 7.98 -.41 -.04 -.45 1970 Jan. 9 7.43 7.86 -.43 -.20 -.63 7.83 7.58 7.86 -.28 -.17 -.45 NOTE.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 BULLETIN, Premium or discount on forward pound and on forward Canadian dollar:pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

I 8818S8 \C 00 O\ON o^o^o^ o 21°Sf>c'S'S>-S3'£' 02 iit ffi n .<CrP^ 5-2, g. o 8, I. I? : : $: : $: : ft: : feSfiftSfeft §.2£s 73 S88SS8SBKKB KB SSiSfe&S S W s h v i K J > - K 4 ) « tO '2 t « O V IO O W O U O » W -- U — Ul — U* U H- K ON >W WO U O I9 t i O U - I J • .. • •. 0 ^<£ 0 . . • . . • v j \ o D - - - .• • Lo O A-- - • • • O L V A D 3LAOLALALA m an _ m to to to to to to to to to to to toto toto^iototo o ^ 0 to 0 W 00 t 0 o 0 t 0 o 0 t o 00 t o 0 0 to 0 t 0 o 0 h 0 J 0 K 0 ) 0 t 0 o 00 tot 0 o 0 00 h- L * t> - * **» - ~ K» ^ - U — » |s» IO a T sO«00 4^-U.f>-«- -uw -Joo-Jtotoio " 0 0 t 0 0 O O O t N o V L 0 A 0 » ^ O U i N * w M O ' N l L ~ o A ' 4 w O - <t * o N " - O l 1 V O D * L K A N ) O K " » t 0 O 0 0 0 w O O O " 0 O O l O N O O 0 N 0 t O O L \ A t 0 O O 0 N V H O - - J " V I O > * — > t " O I N — O 4k. a m II MMM^-MMK-OOOO OO tOU)WLALAO\ O Ul O M 0 U 0 l 0 U 0 l U CO lM 0 U 0 l 0 U 0 l U 00 l U 00 lU O l O 0 L 0 A L 0 A 0 0 O 0 O 00 O 0 O 0 -J -O O . N K O *> NON"-1 * u« . * tn . u * i . tn *. <- * n .^ ty i 4 Lf 1 t w . « ^ w ^ « ^ « * w . i 4 i k y i 4 w ^ i 4 y ^ i 4 u * i - O 4k O . 0 t 0 « < y i— ,O • \ - "• * ^J- - " © 1N—O 4 " k *O— .4 \" >L k -A» K 'V4 w ->'* W I-L.A" O N -LX N AO O 'UO N »O ' OW — O O' O 0 O 0 t O ^0 t O N00O - N J O O L A t L OO A 0 O S0 N W4 k — .O*L As O >] N O\ - O O. Ul ^ to- • to- • to- to- totototoKB nil sssssaaas s& £-w^ o S'S- U 4k l . U 4 t ^ U 4 l ^ U < ^ L U M * U V l ) L L A H s IO j O tO O ^ 0 4 0 ^ 0 J 0 ~ OO J O ^ O 1 M M U M IO -J W v - J J0 ' 0 UI g: : 8: : 0 L LS A 0 I L Q O » O t O L O A Q L N L O A N W O < | S t O O I LA s ^ ll ssssstasss: as ssssss ON U» LA I* Lrt Wi (Ji Uk Ul Ultrt Wi"-n to IO 4k. tO 00 O\ 1 - ^^M££M^^£££»M ^^ ^ ^ ^w oooooOO —tOtONJ OWi OOSOvlsig iggSSSSSSS SS 2£S!=iS£ ^o^ -j-J.-J ON m t/t i! 55 nSSgHs W tO -J -J 00 00 Ol LA ON -~i O0 ~-l-J -AWOiMO I! II ^.^ ^^j ^j ^j ^j ^j ^j •— | fc.,] ^j ^^ ^^ ^j ^J ^^ ^ i KSKKKKSSSKSe K£ SSSS-S ty> ty» ut «^t W« O« tn u» LA m LA LALA 4^<^4^4^>4>S> 00 00 00 00 00 00 00 00 00 00 00 0000 AOCft'-U\D if •S.M *D so vo « * ^e vo \o NO so *a %o\o ^p^^vc*o S88SBKKKKBK KK SSSSSSi I? WWWWWVJWWWWW UlUt LhSOKlOOOO m L to A t L o A t L o r t t o L A tO L A tO V t » O L t A o L to A K © > © tO O M O hJ O O N W O I \ ^ O I N ^ . L J A N 4 I & V . ) 4 L k A . 4 L ^. A 4^ - L 4 A ^- 4 L k A . 4 k V . t 4 k W . 4 t k L . 4 A k . L 4> A - L/i 4 U k. l 4k. Ul 4 L k. A 4 k en U NO i L W A i t U o J (O O LA 4 L k A . 4 W *> l U 4k l . W 4 l * - W LA ( O LA O L \ A * J O N U O « N O O N O IA O O t N O ON U O ON ^ 4 W ^ L W O O to O tO M 4k. ^SSSSS;****;*; SJ; SS;S!SS£: S^SSSSSSSS" 22 %%%$&& 00 00 00 00 00 00 00 OO 00 00 00 OOOO O\ O- <-" U> 4*. ^k j " l O o s ^ o s j t o 'v 4 ^ L O *. A t < o « 4 L * ^ j A . o o 0 ' W j t o 0 o " ^ O U v i > o N o ' L N ^ t d O o J < t O t v O o o \ " t 4 K v » O D J . I " 4 t O v k o D . K t L ' l v o A O t L O O t "v o t o U O 'o w o 4 ) > Q to * \ O % t o O ^ t * o ^ O " N ^ O ) " ^ t • ^ o I « W t ^ o » i M I 0 - N 0 > I K - 0 > J N 0 > - O J 0 N 0 O O 0 N N 0 O N O 0 0 S W 0 O W 0 N l 0 O *J 0 N W O 0 W N 0 O 00 N 0 W O 9 N W 0 O 0 N LAO O O N O N ^ O - O O O N N - ^)OI O "- O £. I U - » O K> O — O N C U)WUWO)UUWUU>W Oi> L*J Ub)(>lWkJK} %HMOH«HsMOH\>O>VMO>-«I-M«\ 0S•0—«^^- O S QN« *>J «*sl *> J ^«<)«OJ000000 — H- 1 — -J N - - J w C w rt & 0\ j v O o t v L o A ^ L J A O L N A O L S A LA ONO LA S L A 00\ U O tt 0 O 0 t 4 O *. \ O D 0 \O 0 00 ssssfiS^assii *«: ftfttssfc Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

JANUARY 1970 • GOLD RESERVES AND PRODUCTION A 93 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d io o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er- Taiwan T la h n a d i- Turkey ( U E . g A y . p R t . ) U K d n i o i n t m g ed - U gu r a u y - V zu e e n l e a - Y sl u av g i o a - S I e f n t o t t r l l e . ments 4 1962 499 446 181 2,667 43 104 140 174 2,582 180 401 4 50 1963 630 573 182 2,820 50 104 115 174 2,484 171 401 14 —279 1964 374 616 189 2,725 55 104 104 139 2,136 171 401 17 50 1965 425 810 202 3,042 55 96 116 139 2,265 155 401 19 —558 1966 637 785 203 2,842 62 92 102 93 1,940 146 401 21 —424 1967 583 785 203 3,089 81 92 97 93 1,291 140 401 22 —624 1968- 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 93 136 403 50 —286 May 1 282 785 225 2,643 81 92 97 93 136 403 50 —282 1,264 785 225 2,643 81 92 97 93 1,474 136 403 51 —285 July 1,171 785 225 2,643 81 92 107 93 136 403 51 —275 1 138 785 226 2 642 81 92 107 93 403 51 268 Sept 1,093 785 226 2,642 81 92 107 93 1,459 165 403 50 -285 Oct p 1 128 785 226 2 642 81 92 117 93 403 50 314 1,125 785 226 2,642 92 117 403 50 -309 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts. of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun- in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are * Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank's gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual NOTE.—For back figures and description of the data in this and the countries. following tables on gold (except production), see "Gold," Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa Morth and South America Asia Other World Period p t r i o o d n u 1 c- A So fr u ic th a R de h s o ia - Ghana C s ( h K o a n i s n g a - o ) U S n ta it te e s d C a a d n a - M ic e o x- r N a i g c u a a - Co b l i o a m- India P p h in ili e p s - t A ra u l s i - a ot A h l e l r 1961 1,215.0 803.0 20.1 29.2 8.1 54.8 156.6 9.4 7.9 14.0 5.5 14.8 37.7 53.9 1962 1,295.0 892.2 19.4 31.1 7.1 54.5 146.2 8.3 7.8 13.9 5.7 14.8 37.4 56.6 1963 1,355.0 960.1 19.8 32.2 7.5 51.4 139.0 8.3 7.2 11.4 4.8 13.2 35.8 64.3 1964 1,405.0 1,018.9 20.1 30.3 6.6 51.4 133.0 7.4 7.9 12.8 5.2 14.9 33.7 62.8 1965 1,440.0 1,069.4 19.0 26.4 3.2 58.6 125.6 7.6 6.9 11.2 4.6 15.3 30.7 61.5 1966 1,445 0 1,080.8 19.3 24.0 5.6 63.1 114.6 7.5 7.0 9.8 4.2 15.8 32 1 61 2 1967 1,410.0 1,068.7 18.0 26.7 5.4 53.4 103.7 '5.8 6.2 9.0 3.4 17.2 28.4 '64 1 1968» 1,420.0 1,088.0 17.5 25.4 5.9 53.9 94.1 6.2 6.8 8.4 4.0 17.8 27.6 64.4 1968 Oct 92.4 7 7 5 7 2 6 Nov 87.9 7.5 .6 .6 1.9 Dec 83.5 7.7 .6 .7 .3 24.2 2.2 1969 Jan 83 4 7 8 6 5 3 1 9 Feb ... . 86.7 7.1 .5 .7 3 2.0 Mar 89.1 7.6 .6 .7 2.1 Apr 89.3 7.3 .7 2.3 May 90.0 7 4 7 2 2 91 3 7 3 7 2 2 July 93 7 6 7 7 Auu 93 9 6 6 7 Sept 95.1 7.0 • 6 Oct 95.2 6.5 1 Estimated; excludes U.S.S.R., other Eastern European countries, NOTE.—Estimated world production based on report of the U.S. China Mainland, and North Korea. Bureau of Mines. Country data based on reports from individual 2 Quarterly data. countries and Bureau of Mines. Data for the United States are from the Bureau of the Mint. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 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 Board ROBERT E. NICHOLS, Special Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF FEDERAL RESERVE BANK OPERATIONS ROBERT C. HOLLAND, Secretary KENNETH A. KENYON, Deputy Secretary JOHN R. FARRELL, Director ELIZABETH L. CARMICHAEL, Assistant Secretary JOHN N. KILEY, JR., Associate Director ARTHUR L. BROIDA, Assistant Secretary JAMES A. MCINTOSH, Assistant Director NORMAND R. V. BERNARD, Assistant Secretary P. D. RING, Assistant Director GORDON B. GRIMWOOD, Defense Planning CHARLES C. WALCUTT, Assistant Director Coordinator and Assistant Secretary LLOYD M. SCHAEFFER, Chief Federal Reserve Examiner LEGAL DIVISION DAVID B. HEXTER, General Counsel DIVISION OF SUPERVISION AND REGULATION THOMAS J. O'CONNELL, Deputy General Counsel FREDERIC SOLOMON, Director JEROME W. SHAY, Assistant General Counsel BRENTON C. LEAVITT, Deputy Director ROBERT F. SANDERS, Assistant General Counsel FREDERICK R. DAHL, Assistant Director JACK M. EGERTSON, Assistant Director PAULINE B. HELLER, Adviser JANET O. HART, Assistant Director DIVISION OF RESEARCH AND STATISTICS JOHN N. LYON, Assistant Director MILTON W. SCHOBER, Assistant Director J. CHARLES PARTEE, Director THOMAS A. SIDMAN, Assistant Director STEPHEN H. AXILROD, Associate Director LYLE E. GRAMLEY, Associate Director STANLEY J. SIOEL, Adviser DIVISION OF PERSONNEL ADMINISTRATION TYNAN SMITH, Adviser EDWIN J. JOHNSON, Director MURRAY S. WERNICK, Adviser JOHN J. HART, Assistant Director KENNETH B. WILLIAMS, Adviser PETER M. KEIR, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES BERNARD SHULL, Associate Adviser JOSEPH E. KELLEHER, Director JAMES B. ECKERT, Assistant Adviser DONALD E. ANDERSON, Assistant Director JAMES L. PIERCE, Assistant Adviser JOHN D. SMITH, Assistant Director STEPHEN P. TAYLOR, Assistant Adviser Louis WEINER, Assistant Adviser OFFICE OF THE CONTROLLER JOSEPH S. ZEISEL, Assistant Adviser JOHN KAKALEC, Controller DIVISION OF INTERNATIONAL FINANCE HARRY J. HALLEY, Assistant Controller ROBERT SOLOMON, Director •ROBERT L. SAMMONS, Associate Director OFFICE OF DEFENSE PUNNING JOHN E. REYNOLDS, Associate Director INNIS D. HARRIS, Coordinator JOHN F. L. GHIARDI, Adviser A. B. HERSEY, Adviser DIVISION OF DATA PROCESSING REED J. IRVINE, Adviser JEROLD E. SLOCUM, Director SAMUEL I. KATZ, Adviser JOHN P. SINGLETON, Associate Director BERNARD NORWOOD, Adviser GLENN L. CUMMINS, Assistant Director RALPH C. WOOD, Adviser RICHARD S. WATT, Assistant Director ROBERT F. GEMMILL, Associate Adviser SAMUEL PIZER, Associate Adviser *On leave of absence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 95 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 MARK C. WHEELER, FIRST FEDERAL DONALD M. GRAHAM, SEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN M. MEYER, JR., SECOND FEDERAL ALLEN MORGAN, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT GEORGE H. BROWN, JR., THIRD FEDERAL PHILIP H. NASON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN A. MAYER, FOURTH FEDERAL JACK T. CONN, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT ROBERT D. H. HARVEY, FIFTH FEDERAL JOHN E. GRAY, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT GEORGE S. CRAFT, SIXTH FEDERAL A. W. CLAUSEN, TWELFTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank Chairman President Vice President or branch Zip code Deputy Chairman First Vice President in charge of branch Boston 02106 James S. Duesenberry 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 Robert S. Bennett A. A. Maclnnes, Jr. Philadelphia 19101 Willis J. Winn Karl R. Bopp Bayard L. England Robert N. Hilkert Cleveland 44101 Albert G. Clay W. Braddock Hickman J. Ward Keener Walter H. MacDonald Cincinnati 4S201 Graham E. Marx Fred O. Kiel Lawrence E. Walkley Clyde E. Harrell Pittsburgh 15230 Wilson H. Elkins Aubrey N. Heflin Richmond 23213 Robert W. Lawson, Jr. Robert P. Black Arnold J. Kleff, Jr. H. Lee Boatwright, III Baltimore 21203 Edmund F. MacDonald Charlotte 28201 Atlanta 30303 Edwin I. Hatch Monroe Kimbrel John C. Wilson Kyle K. Fossum Birmingham 35202 Dan L. Hendley Jacksonville 32201 Henry K. Stanford Edward C. Rainey Nashville 37203 Jeffrey J. Wells New Orleans 70160 Robert H. Radcliff, Jr. Arthur H. Kantner Chicago 60690 Emerson G. Higdon Charles J. Scanlon William H. Franklin Hugh J. Helmer Detroit 48231 L. Wm. Seidman 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 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 Chas. F. Jones T. W. Plant El Paso 79999 Gordon W. Foster Fredric W. Reed Houston 77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio 78206 Francis B. May Carl H. Moore San Francisco 94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles 90054 Leland D. Pratt Paul W. Cavan Portland 97208 Robert F. Dwyer William M. Brown Salt Lake City 84110 Peter E. Marble Arthur L. Price Seattle 98124 C. Henry Bacon, Jr. William R. Sandstrom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 97 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should 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 97—A 101 of the December 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 annum or $.60 a copy in the United States and IN METROPOLITAN AREAS: A STATISTICAL its possessions, Bolivia, Canada, Chile, Colom- STUDY OF FACTORS AFFECTING RATES ON bia, Costa Rica, Cuba, Dominican Republic, BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or Ecuador, Guatemala, Haiti, Republic of Hon- more sent to one address, $.40 each. duras, Mexico, Nicaragua, Panama, Paraguay, Peru, El Salvador, Uruguay, and Venezuela; 10 THE PERFORMANCE OF BANK HOLDING COMor more of same issue sent to one address, $5.00 PANIES. 1967. 29 pp. $.25 a copy; 10 or more per annum or $.50 each. Elsewhere, $7.00 per sent to one address, $.20 each. annum or $.70 a copy. FARM DEBT. Data from the 1960 Sample Survey FEDERAL RESERVE CHART BOOK ON FINANCIAL of Agriculture. 1964. 221 pp. $1.00 a copy; 10 AND BUSINESS STATISTICS. Monthly. Annual or more sent to one address, $.85 each. subscription includes one issue of Historical Chart Book. $6.00 per annum or $.60 a copy in MERCHANT AND DEALER CREDIT IN AGRICULthe United States and the countries listed above; TURE. 1966. 109 pp. $1.00 a copy; 10 or more 10 or more of same issue sent to one address, sent to one address, $.85 each. $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. THE FEDERAL FUNDS MARKET. 1959. Ill pp. $1.00 a copy; 10 or more sent to one address, HISTORICAL CHART BOOK. Issued annually in Sept. $.85 each. Subscription to monthly chart book includes one issue. $.60 a copy in the United States and countries listed above; 10 or more sent to one TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 address, $.50 each. Elsewhere, $.70 a copy. a copy; 10 or more sent to one address, $.85 each. FLOW OF FUNDS IN THE UNITED STATES, 1939- 53. 1955. 390 pp. $2.75. U.S. TREASURY ADVANCE REFUNDING, JUNE 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 DEBITS AND CLEARING STATISTICS AND THEIR or more sent to one address, $.40 each. USE. 1959. 144 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. THE FEDERAL RESERVE ACT, as amended through Nov. 5, 1966, with an appendix containing pro- SUPPLEMENT TO BANKING AND MONETARY STA- visions of certain other statutes affecting the TISTICS. Sec. 1. Banks and the Monetary Sys- Federal Reserve System. 353 pp. $1.25. tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 REGULATIONS OF THE BOARD OF GOVERNORS OF pp. $.35. Sec. 6. Bank Income 1966. 29 pp. THE FEDERAL RESERVE SYSTEM. $.35. Sec. 9. Federal Reserve Banks. 1965. 36 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. 1962. 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 FEDERAL RESERVE BULLETIN n JANUARY 1970 INTEREST RATE EXPECTATIONS: TESTS ON YIELD RESERVE ADJUSTMENTS OF THE EIGHT MAJOR SPREADS AMONG SHORT-TERM GOVERNMENT NEW YORK CITY BANKS DURING 1966. 1968. SECURITIES. 1968. 83 pp. $.50 a copy; 10 or 29 pp. more sent to one address, $.40 each. DISCOUNT POLICY AND OPEN MARKET OPERA- TIONS. 1968. 23 pp. SURVEY OF FINANCIAL CHARACTERISTICS OF CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. THE REDESIGNED DISCOUNT MECHANISM AND THE MONEY MARKET. 1968. 29 pp. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. SUMMARY OF THE ISSUES RAISED AT THE ACA- 321 pp. $1.00 a copy; 10 or more sent to one DEMIC SEMINAR ON DISCOUNTING. 1968. address, $.85 each. 16 pp. REPORT OF THE JOINT TREASURY-FEDERAL RE- A REVIEW OF RECENT ACADEMIC LITERATURE SERVE STUDY OF THE U.S. GOVERNMENT ON THE DISCOUNT MECHANISM. 1968. 40 pp. SECURITIES MARKET. 1969. 48 pp. $.25 a copy; 10 or more sent to one address, $.20 each. DISCOUNT POLICY AND BANK SUPERVISION. 1968. 72 pp. (Limited supplies of the staff studies on the Government Securities Market Study, as THE LEGITIMACY OF CENTRAL BANKS. 1969. listed on page 48 in the main report, are 24 pp. available upon request for single copies. These studies are printed in mimeographed SELECTIVE CREDIT CONTROL. 1969. 9 pp. or similar form.) SOME PROPOSALS FOR A REFORM OF THE DIS- REAPPRAISAL OF THE FEDERAL RESERVE DIS- COUNT WINDOW. 1969. 40 pp. COUNT MECHANISM: REPORT OF A SYSTEM COMMITTEE. 1968. 23 RATIONALE AND OBJECTIVES OF THE 1955 REpp. $.25 a copy; 10 or more sent to one ad- VISION OF REGULATION A. 1969. 33 pp. dress, $.20 each. AN EVALUATION OF SOME DETERMINANTS OF MEMBER BANK BORROWING. 1969. 29 pp. REPORT ON RESEARCH UNDERTAKEN IN CON- NECTION WITH A SYSTEM STUDY. 1968. 47 pp. $.25 a copy; 10 or more sent to one STAFF ECONOMIC STUDIES address, $.20 each. Studies and papers on economic and financial subjects that are of general interest in the field of Limited supply of the following papers relating to economic research. the Discount Study, in mimeographed or similar form, available upon request for single copies: Summaries only printed in the Bulletin. (Limited supply of mimeographed copies of full EVOLUTION OF THE ROLE AND FUNCTIONING text available upon request for single copies.) OF THE DISCOUNT MECHANISM. 1968. 65 pp. MEASURES OF INDUSTRIAL PRODUCTION AND A STUDY OF THE MARKET FOR FEDERAL FUNDS. FINAL DEMAND, by Clayton Gehman and Cor- 1968. 47 pp. nelia Motheral. Jan. 1967. 57 pp. THE SECONDARY MARKET FOR NEGOTIABLE CHANGES IN BANK OWNERSHIP: THE IMPACT ON CERTIFICATES OF DEPOSIT. 1968. 89 pp. OPERATING PERFORMANCE, by Paul F. Jessup. Apr. 1969. 35 pp. THE DISCOUNT MECHANISM IN LEADING IN- DUSTRIAL COUNTRIES SINCE WORLD WAR II. CHARACTERISTICS OF MERGING BANKS, by David 1968. 216 pp. L. Smith. July 1969. 30 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 99 OPTIMAL FACTOR ADJUSTMENT PATHS: A GENER- CYCLES AND CYCLICAL IMBALANCES IN A CHANG- ALIZATION OF "STOCK ADJUSTMENT" DECISION ING WORLD, Staff Paper by Frank R. Garfield. RULES, by P. A. Tinsley. July 1969. 14 pp. Nov. 1965. 15 pp. ECONOMIC FORECASTS: EVALUATION PROCE- RESEARCH ON BANKING STRUCTURE AND PER- DURES AND RESULTS, by H. O. Stekler. Oct. FORMANCE, Staff Economic Study by Tynan 1969. 49 pp. Smith. Apr. 1966. 11 pp. SOME PROBLEMS IN FORECASTING INVENTORY COMMERCIAL BANK LIQUIDITY, Staff Economic INVESTMENT, by H. O. Stekler. Oct. 1969. 23 pp. Study by James Pierce. Aug. 1966. 9 pp. AUTOMOTIVE TRADE BETWEEN THE UNITED TOWARD UNDERSTANDING OF THE WHOLE DE- STATES AND CANADA, by Kathryn A. Morisse. VELOPING ECONOMIC SITUATION, Staff Eco- Nov. 1969. 33 pp. nomic Study by Frank R. Garfield. Nov. 1966. 14 pp. MONETARY POLICY AND THE AVAILABILITY OF MORTGAGE LENDING COMMITMENTS, by Rob- A REVISED INDEX OF MANUFACTURING CAPACITY, ert Moore Fisher. Dec. 1969. 36 pp. Staff Economic Study by Frank de Leeuw with IMPORTED INFLATION AND THE INTERNATIONAL Frank E. Hopkins and Michael D. Sherman. ADJUSTMENT PROCESS, by Ruth Logue. Dec. Nov. 1966. 11 pp. 1969.147 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN Printed in full in the Bulletin. U.S. CAPITAL MARKETS, Staff Economic Study (Reprints available as shown in following list.) by Daniel H. Brill, with Ann P. Ulrey. Jan. 1967. 14 pp. REPRINTS REVISED SERIES ON COMMERCIAL AND INDUS- (From Federal Reserve BULLETIN unless preceded TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. by an asterisk.) AUTO LOAN CHARACTERISTICS AT MAJOR SALES ADJUSTMENT FOR SEASONAL VARIATION. Descrip- FINANCE COMPANIES. Feb. 1967. 5 pp. tion of method used by Board in adjusting economic data for seasonal variations. June 1941. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. 11pp. 1967. 26 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. MONETARY POLICY AND THE RESIDENTIAL MORT- Feb. 1958. 12 pp. GAGE MARKET. May 1967. 13 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. BANK FINANCING OF AGRICULTURE. June 1967. 23 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. EVIDENCE ON CONCENTRATION IN BANKING INTEREST RATES AND MONETARY POLICY, Staff MARKETS AND INTEREST RATES, Staff Eco- Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. nomic Study by Almarin Phillips. June 1967. 11pp. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. CHANGES IN BANKING STRUCTURE, 1953-62. Sept. 1963. 8 pp. REVISED INDEXES OF MANUFACTURING CAPACITY THE OPEN MARKET POLICY PROCESS. Oct 1963 AND CAPACITY UTILIZATION. July 1967. 3 pp. 11pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON REVISION OF BANK DEBITS AND DEPOSIT TURN- MEMBER BANKS. July 1967. 6 pp. OVER SERIES. Mar. 1965. 4 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff INTEREST COST EFFECTS OF COMMERCIAL BANK Economic Study by Lyle E. Gramley and UNDERWRITING OF MUNICIPAL REVENUE Samuel B. Chase, Jr. Oct. 1965. 25 pp. BONDS. Aug. 1967. 16 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN n JANUARY 1970 THE FEDERAL RESERVE-MIT ECONOMETRIC HOUSING PRODUCTION AND FINANCE. Mar. 1969. MODEL, Staff Economic Study by Frank de 7 pp. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. RECENT TRENDS IN THE U.S. BALANCE OF PAY- THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. MENTS. Apr. 1969. 18 pp. 1968. 7 pp. QUARTERLY SURVEY OF CHANGES IN BANK LEND- U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN ING PRACTICES. Apr. 1969. 5 pp. 1960-67. Apr. 1968. 23 pp. BANKING AND MONETARY STATISTICS, 1968. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. Selected series of banking and monetary statistics for 1968 only. Mar. and May 1969. 16 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND OUR PROBLEM OF INFLATION. June 1969. 15 pp. LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. THE CHANNELS OF MONETARY POLICY, Staff Economic Study by Frank de Leeuw and Edward REVISED SERIES ON BANK CREDIT. Aug. 1968. Gramlich. June 1969. 20 pp. 4 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL FEDERAL FISCAL POLICY IN THE 1960's. Sept. BANKS. Aug. 1969. 5 pp. 1968. 18 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX- HOW DOES MONETARY POLICY AFFECT THE CHANGE OPERATIONS. Sept. 1969. 22 pp. ECONOMY? Staff Economic Study by Maurice Mann. Oct. 1968. 12 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. BUSINESS FINANCING BY BUSINESS FINANCE 20 pp. COMPANIES. Oct. 1968. 13 pp. REVISION OF MONEY SUPPLY SERIES. Oct. 1969. MANUFACTURING CAPACITY: A COMPARISON OF 16 pp. TWO SOURCES OF INFORMATION, Staff Economic Study by Jared J. Enzler. Nov. 1968. CHANGES IN TIME AND SAVINGS DEPOSITS, APRIL- 5 pp. JULY 1969. Oct. 1969. 11 pp. MONETARY RESTRAINT, BORROWING, AND CAP- FINANCIAL DEVELOPMENTS IN THE THIRD ITAL SPENDING BY SMALL LOCAL GOVERN- QUARTER OF 1969. Nov. 1969. 10 pp. MENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. BALANCE OF PAYMENTS PROGRAM: REVISED REVISION OF CONSUMER CREDIT STATISTICS. GUIDELINES FOR BANKS AND NONBANK FINAN- CIAL INSTITUTIONS. Jan. 1970. 11 pp. Dec. 1968. 21 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 101 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 Euro-dollars, 86 Banks and the monetary system, 18 Federal Reserve Banks, 12, 86 Corporate, current, 49 Postal savings, 18 Federal Reserve Banks, 12 Subject to reserve requirements, 17 Automobiles: Discount rates, 9, 90 Consumer instalment credit, 54, 55, 56 Discounts and advances by Reserve Banks, 4, 12, 15 Production index, 58, 59 Dividends, corporate, 48, 49 Dollar assets, foreign, 75, 81 Bankers' balances, 25, 28 (See also Foreigners, claims on, and liabilities to) Earnings and hours, manufacturing industries, 65 Banks and the monetary system, 18 Employment, 62, 64, 65 Banks for cooperatives, 39 Euro-dollar deposits in foreign branches of Bonds (See also U.S. Govt. securities): U.S. banks, 86 New issues, 45, 46, 47 Yields and prices, 34, 35 Farm mortgage loans, 50, 51 Branch banks, liabilities of U.S. banks to their foreign Federal finance: branches, 30, 86 Cash transactions, 40 Brokerage balances, 85 Receipts and expenditures, 41 Business expenditures on new plant and equipment, 49 Treasury operating balance, 40 Business indexes, 62 Federal funds, 8, 24, 26, 30, 33 Business loans (See Commercial and industrial loans) Federal home loan banks, 39, 51 Federal Housing Administration, 50, 51, 52, 53 Capacity utilization, 62 Federal intermediate credit banks, 39 Capital accounts: Federal land banks, 39 Federal National Mortgage Assn., 39, 53 Banks, by classes, 19, 25, 30 Federal Reserve Banks: Federal Reserve Banks, 12 Central banks, 90, 92 Condition statement, 12 Certificates of deposit, 30 U.S. Govt. securities held, 4, 12, 15, 42, 43 Coins, circulation, 16 Federal Reserve credit, 4, 12, 15 Commercial and industrial loans: Federal Reserve notes, 12, 16 Commercial banks, 24 Federally sponsored credit agencies, 39 Weekly reporting banks, 26, 31 Finance company paper, 33, 37 Commercial banks: Financial institutions, loans to, 24, 26 Assets and liabilities, 19, 24, 26 Float, 4 Consumer loans held, by type, 55 Flow of funds, 70 Deposits at, for payment of personal loans, 23 Foreign: Number, by classes, 19 Currency operations, 12, 14, 75, 81 Real estate mortgages held, by type, 50 Deposits in U.S. banks, 4, 12, 18, 25, 29, 86 Commercial paper, 33, 37 Exchange rates, 89 Condition statements (See Assets and liabilities) Trade, 73 Construction, 62, 63 Foreigners: Consumer credit: Claims on, 82, 83, 86, 87, 88 Instalment credit, 54, 55, 56, 57 Liabilities to, 30, 76, 77, 79, 80, 81, 86, 87, 88 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 Customer credit, stock market, 36 Gross national product, 68, 69 Hours and earnings, manufacturing industries, 65 Debits to deposit accounts, 15 Housing permits, 62 Debt (See specific types of debt or securities) Housing starts, 63 Demand deposits: Adjusted, banks and the monetary system, 18 Adjusted, commercial banks, 15, 17, 25 Income, national and personal, 68, 69 Banks, by classes, 11, 19, 25, 29 Industrial production index, 58, 62 Subject to reserve requirements, 17 Instalment loans, 54, 55, 56, 57 Turnover, 15 Insurance companies, 38, 42, 43, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BULLETIN a JANUARY 1970 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, S3 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 loans, 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 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 Tax receipts, Federal, 41 Number, by classes, 19 Reserve position, basic, 8 Time deposits, 11, 17, 18, 19, 25, 29 Reserve requirements, 10 Treasury cash, Treasury currency, 4, 16, 18 Treasury deposits, 5, 12, 40 Reserves and related items, 4, 17 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, 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, 22, 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 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES a (o THE FEDERAL RESERVE SYSTEM g) a Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis