Federal Reserve Bulletin, 1970-05

F E D E R A L R E S E R V E BULLETIN * ★ ★ * ^ V . • f^A L R E ^ * * • ' * * * * MAY 1970 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 5 O VOLUME 56 □ MAY 1970 CONTENTS 399 Financial Developments in the First Quarter of 1970 408 Changes in Time and Savings Deposits, October 1969-January 1970 421 SDR’s in Federal Reserve Operations and Statistics 425 Changes in Bank Lending Practices, 1969 430 Statement to Congress 436 Record of Policy Actions of the Federal Open Market Committee 444 Law Department 481 Announcements 483 National Summary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 4 U.S. Statistics A 72 International Statistics A 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 COMMITTEE J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the First Quarter of 1970 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in fi­ nancial markets during the winter and early spring. PRESSURES in financial markets moderated during the first quarter of 1970, as interest rates declined and most monetary aggregates expanded faster than in the previous quarter. The money stock grew at a seasonally adjusted annual rate of 3.8 per cent, up from the very slow rate of growth of the second half of 1969. Time deposits of commercial banks also rose in the first quarter, after having declined in the second half of last year, but growth for the quarter as a whole was quite slow. Late in the quarter, however, banks began to add to their outstanding time deposits at a relatively rapid pace, as they were able to offer higher rates after the Board of Governors’ liberalization of Reg­ ulation Q ceilings and the decline of market interest rates. As time deposit performance improved, bank reliance on non­ deposit sources of funds declined. Euro-dollar borrowings from foreign branches fell by $1.6 billion from December to March— with most of the decline in the last month of the quarter—and sales of commercial paper by bank affiliates moderated late in the period. This substitution among various types of liabilities helped to limit the growth in banks’ assets. Total loans and investments advanced only slightly faster than in the fourth quarter of 1969— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 FEDERAL RESERVE BULLETIN □ MAY 1970 after including the outright sale of loans to bank affiliates. All of the growth in bank credit was attributable to an increase in loans; holdings of securities were practically unchanged, following sharp reductions throughout 1969. In January banks ran off securities in volume when time deposits were declining, but sub­ stantial acquisitions of investments in March offset the earlier decline. At nonbank thrift institutions, net inflows of deposits increased moderately during the first quarter as a whole. Such institutions used some of their deposit flows to rebuild liquidity and repay borrowings, and mortgage commitments remained under con­ straint. The rate of expansion in total mortgage debt continued to decline. In other long-term markets, corporate borrowers issued an increased volume of securities, and so did State and local governmental units. The increased supply of longer-term securities tended to limit the decline in interest rates in such markets from the peak rates reached in December 1969. Interest rates in short-term markets, however, declined substantially during the first quarter as some borrowers apparently shifted their credit demands to longer-term markets. In late March banks followed the pattern of lower rates by reducing the prime rate on business loans. BANK RESERVES AND BORROWINGS BILLIONS OF DOLLARS, SEASONALLY ADJUSTED RESERVES: TOTAL / NONBORROWED^ X Jf mSMSSsSmiWmmmm H H NOT SEASONALLY ADJUSTED Monthly average of daily figures for member banks. Total and nonborrowed reserves are adjusted to exclude the effects of changes in reserve requirement percentages. Nonborrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. Excess reserves are total reserves less required reserves. Latest figures, March. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Ql 1970 401 MONETARY AGGREGATES The money stock—currency and privately held demand de­ posits—rose at an annual rate of 3.8 per cent in the first quarter, at a time when interest rates were declining. This rate of increase compares with an expansion rate of little more than 1 per cent during the preceding quarter; the bulk of the pick-up in growth occurred in private demand deposits, which showed their first quarterly increase since the second quarter of 1969. Meanwhile, the currency component of money stock continued to grow at a relatively rapid pace. U.S. Government demand deposits, sea­ sonally adjusted, rose further. Although nonborrowed reserves evidenced sizable swings within the quarter in reflection of de­ posit movements and other factors, such reserves declined slightly on balance. Time and savings deposits at all commercial banks showed a sharp run-off during January following year-end interest credit­ ing, as investors shifted funds to higher-yielding market instru­ ments. But banks were able to maintain and attract interestbearing deposits as the quarter progressed, and in March the rapid net expansion of such deposits offset the earlier decline. In large part, this pattern was accounted for by the combination of reduced market rates of interest and higher rates offered on FLOWS OF SELECTED MONETARY AGGREGATES Percentage annual rates of change, seasonally adjusted 1969 1970 Item I IT III IV I Money stock.......................................... 4.1 4.5 1.2 3.8 Time and savings deposits at all commercial banks.......................... -5.1 -3.0 -13.3 .4 Money stock plus time and sav­ ings deposits at all commercial banks.................................................... -.6 .7 -6.7 .7 2.0 Total member bank deposits plus Euro-dollars plus other nonde­ posit funds1....................................... n.a. n.a. -4.3 2.0 .5 memo: Average money stock2.................. 6.0 4.5 1.2 .6 2.6 1 Beginning on May 28, 1969, the following data were collected weekly: Euro-dollars borrowed directly from foreign banks or through brokers and dealers, bank liabilities to own branches in U.S. territories and possessions, commercial paper issued by bank holding companies or other bank affiliates, and loans or participation in pools of loans sold under repurchase agreement to other than banks and other than banks’ own affiliates or subsidiaries. 2 The percentage change in the average level of the money stock during a quarter from the average level during the preceding quarter, at annual rates. This measure is included because it is used by many analysts and in various econometric models in relating money stock data to quarterly figures for eco­ nomic activity, such as the gross national product. n.a. Not available. Note.—With the exception of the memo item, changes are calculated from the average amounts outstanding in the last month of each quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 FEDERAL RESERVE BULLETIN □ MAY 1970 time and savings deposits; most banks raised their offering rates quickly after interest rate ceilings under Regulation Q were raised effective January 21, 1970. All types of time and savings deposits evidenced significant growth in the latter part of the quarter. In particular, largedenomination certificates of deposit (CD’s) showed their first quarterly increase since the fourth quarter of 1968, as banks were able to sell such claims to State and local governments, to foreign official institutions, and—to a degree—to corporations. As funds became more readily available, major banks showed less interest in issuing CD’s to foreign official institutions at premium rates. These institutions had been a major source of funds from September to March. This sharp turnaround in growth in time deposits late in the quarter encouraged substitution of these funds for higher-cost nondeposit sources of funds. Outstanding Euro-dollars borrowed from foreign branches of U.S. banks averaged $12.7 billion in March, a decline of $1.6 billion from the December monthly average. While issuance of commercial paper by bank holding companies and affiliates rose by nearly $2.2 billion in the first quarter, or at a pace $0.6 billion larger than in the previous quarter, most of this increase occurred early in the quarter when total time and savings deposits were running off. Commercial paper sales moderated significantly as deposit growth resumed. The adjusted bank credit proxy—total member bank deposits plus Euro-dollars plus other nondeposit sources of funds—in­ creased at an annual rate of 0.5 per cent in the first quarter, somewhat less than in the fourth quarter when there had been a relatively more rapid increase in nondeposit sources of funds. BANKS’ USES OF FUNDS Total security investments at banks were about unchanged for the first quarter, in sharp contrast to the sizable declines that had occurred throughout 1969. Holdings of U.S. Government securi­ ties declined by a total of $2.0 billion. Banks reduced their Government portfolio substantially during January when time deposits declined rapidly. In March, however, banks acquired a modest volume of Treasury securities as pressures on available funds lessened. Over the quarter, banks increased their holdings of Federal agency and municipal securities, with by far the larg­ est increase occurring in March. To some degree, the acquisition of municipal and Federal agency issues late in the quarter rep­ resented the activities of dealer banks, which were building up Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Ql 1970 403 BANK CREDIT-components their inventories of securities for resale, but there are also indica­ ---..-.-..-.-.-..-.-.-.-..-.-..-.-..-.-.-..-.- -----W----B--g-- -B-ffljg of M rs tions that banks in general were buying short-term and some U.S. GOVT. SECURITIES □TTI IH" long-term securities for investment purposes. Total loans in bank portfolios were essentially unchanged in the first quarter of 1970, a sharp contrast to the $5 billion increase in the quarter earlier. Even after adjusting for loans sold, the net change in credit supplied through bank loans was well below the rate registered in any quarter of 1969. This re­ duced growth was attributable principally to the large repayment of loans by nonbank financial institutions, which had borrowed heavily during the fourth quarter of 1969. While business loans held in bank portfolios declined, if loans sold to affiliates or sub­ sidiaries are taken into account, the rate of business loan growth was about the same as during the second half of 1969. But in March alone the rate of business loan growth was relatively weak, probably reflecting the slower pace of economic activity as Seasonally adjusted. well as an enlarged volume of loan repayments from proceeds of capital market borrowing. Real estate loans continued to BANK LOANS-major components advance at the limited fourth-quarter rate, which was associated “^^^""""^^^HAMGr^iLUONrorDOLU^ with the sluggish behavior of new construction and other real 4 estate activity. The advance in consumer loans moderated as consumer purchases of durable goods—particularly autos—were n ...n ,„ noticeably below the level of the fourth quarter of 1969. The sluggish performance of total loans in the first quarter appears to have represented a combination of reduced demands n H rn .i and the effects of tighter lending standards adopted earlier by banks. In addition, banks appear to have evidenced concern to i ii 11— 11 — . 2 rebuild liquidity positions with the funds that became available through deposit inflows. While the prime rate on business loans HM D* Q3 Ql was reduced one-half percentage point to 8 per cent, other loan _______________1969 1970 terms and conditions do not appear to have been altered sig­ Seasonally adjusted. nificantly. NONBANK Net deposit inflows to savings and loan associations and mutual INTERMEDIARIES AND savings banks increased at a modest rate from the fourth quarter THE MORTGAGE MARKET of 1969 to the first quarter of 1970. Outflows were heavy in January, but deposits expanded during the next 2 months; growth was particularly sizable in March. Declines in yields on money market instruments and increases in rate ceilings on savings de­ posits—announced in late January—were contributing factors, as they were for commercial banks. Intermediaries utilized new funds mainly to improve portfolio liquidity and to repay borrow- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 FEDERAL RESERVE BULLETIN □ MAY 1970 NONBANK SAVINGS ACCOUNTS ings. New mortgage commitments at thrift institutions continued ANNUAL RATE OF CHANGE, PER CENT to decline. Net mortgage-debt formation continued downward early this year for the fourth consecutive quarter. While support from the Federal National Mortgage Association and the Federal home 02 Q3 Ql loan banks remained exceptionally strong, there was a marked 1969 1970 Seasonally adjusted. slowing in expansion of residential mortgage debt. The season­ ally adjusted quarterly rate of about $3.6 billion was the lowest since the second quarter of 1967. Expansion of total mortgage holdings by savings and loan associations, the major lenders on homes, was the smallest for any first quarter since 1967. Net expansion by commercial banks and mutual savings banks was also quite small, although net mortgage lending by life insurance companies apparently improved somewhat from the very reduced levels in the comparable period of other recent years. NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly rates 1969 1970 Item I II III IV Ie 7.6 7.1 6.6 6.1 5.2 Residential.......................................... 5.5 5.3 4.9 4.4 3.6 Other i.................................................. 2.1 1.8 1.6 1.7 1.6 e Partly estimated. 1 Includes commercial, farm, and other nonresidential properties. FUNDS RAISED A substantial rise in new corporate bond offerings, which accel- IN OPEN MARKET erated in March, brought the first-quarter volume to a record high. A number of large companies in the manufacturing indus­ try, a group noticeably absent from the capital markets in 1969, issued bonds in the first quarter. Many corporations turned to long-term debt instruments to rebuild their depleted liquidity positions and to repay short-term debt. Long-term borrowing by public utilities and communications firms continued to rise, reflecting the long-range capital outlay programs needed to meet the steadily expanding demand for utility services. In addition, many corporations were under pressure from the widening mar­ gin between capital spending and the volume of funds generated internally through earnings and depreciation. Equity issues re­ mained relatively high in the first quarter in spite of pronounced weakness in the stock market. Long-term bond issues by State and local governments reached Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Ql 1970 405 OFFERINGS OF NEW SECURITY ISSUES Monthly averages in billions of dollars, not seasonally adjusted 1969 1970 Item I II III IV Ie Corporate securities—Total............ 2.1 2.5 2.1 2.3 2.6 Bonds.................................................... 1.4 1.7 1.5 1.5 1.9 Stocks................................................... .7 .8 .6 .8 .7 State and local government bonds. .9 1.2 .8 1.0 1.3 e Estimated. the highest level in a year and in fact were considerably above the year-earlier quarter. A sharp decline in yields, especially in the shorter maturities, made possible the sale of issues that had been deferred because of market conditions in 1969. Interest rate ceilings had depressed the volume of long-term borrowing by municipalities, especially in the latter half of 1969; however, moves in late 1969 and early 1970 by legislative authorities to lift these ceilings, combined with falling market rates during the first quarter, permitted municipal offerings to move back toward the long-run trend. Expectations of easing monetary policy and declines in interest rates, as well as a pick-up in bank purchases of municipals, buoyed prices of such securities. A heavy backlog of State and local borrowing needs still overhung the market, however. Net cash borrowing by the Federal Government declined about seasonally during the first quarter, although the budget deficit shrank by somewhat less than usual in the first 3 months of the year. Corporate tax payments and the nonwithheld por­ tions of individuals’ tax payments were both lower than in the corresponding period of 1969—reflecting the slower pace of economic activity and the reduction of the surtax in 1970— while budget expenditures rose above the year-earlier level. Bor­ rowings by Federal agencies climbed to a new peak of $3.6 billion in the first quarter, with a variety of agencies entering the market to raise new money. The Federal Home Loan Bank Board, as part of its effort to support the mortgage markets, advanced funds to savings institutions in the early part of the quarter and built up its own liquidity position in preparation to supply additional funds that might later be needed. The outstanding volume of commercial paper issued by firms other than banks continued to rise during the first quarter, but the rate of increase tapered off in March. The reduced rate of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 FEDERAL RESERVE BULLETIN □ MAY 1970 FEDERAL GOVERNMENT BORROWING AND CASH BALANCE Quarterly totals in billions of dollars, not seasonally adjusted 1969 1970 Item I II III IV I Budget surplus or deficit................... -2.0 15.5 -2.5 -5.7 -3.5 Net cash borrowing, or repayment (-)1...................................................... .2 -12.6 23.2 5.1 2.0 Other means of financing3............... 1.9 -1.8 ... -.8 3.1 Change in cash balance..................... .1 1.1 .7 -1.3 1.6 memo: Federal agency borrowing4......... 1.1 2.3 2.7 2.9 3.6 1 Excludes effect on agency debt outstanding of transfers of certain agencies to private ownership. 2 Adjusted to remove effects of reclassification of $1.6 billion in Commodity Credit Corporation cer­ tificates of interest from budget transactions to agency securities (borrowing from the public). 3 Checks issued less checks paid and other accrued items. 4 Includes debt of FHLBB, Federal land banks, FNMA, Federal intermediate credit banks, and banks for cooperatives. borrowing in this market may have reflected, in part, an attempt by corporations to improve their balance sheet structure by using part of the proceeds from long-term security offerings to pay down short-term debt. MONEY MARKET Expectations of easing credit conditions were a major factor in AND INTER^ST^RATES t^le first'(luarter decline in interest rates, especially in the short­ term markets. In addition, short-term rates were driven down as borrowing demands were focused in long-term markets, and as banks and other financial institutions invested in short-term securities in an effort to rebuild liquidity positions. The average yield for 3-month Treasury bills in March was 6.63 per cent, more than a full percentage point below the average in December. The Federal funds rate registered a similar decline late in the quarter when a rise in nonborrowed reserves provided through open market operations reduced the pressure on bank reserve positions. As money market conditions eased, banks reduced their borrowing at the Federal Reserve discount window. The decline in commercial and finance-company paper rates was less pronounced than it was for other short-term rates, as banks and others issued sizable amounts of paper. Surges in demand for long-term funds by the private sector late in the quarter and continued apathy towards long-term fixedincome securities on the part of institutional investors kept long-term yields from falling as much as short-term yields. Yields on corporate Aaa new issues in March were only 25 basis points below the December 1969 highs, even though there had been a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Ql 1970 407 dramatic slide in rates during January and February. This trend was reversed by a rapid build-up in new-issue volume in March and by the prospect of sustained capital market borrowing through the first half of 1970. By early March State and local government bond yields had fallen 95 basis points from their 1969 record high, as signs of easier credit market conditions began to appear and bank pur­ chases of municipal bonds picked up. Long-term U.S. Govern­ ment bond yields also showed a sharp drop—30 basis points from the beginning-of-1970 high—but then edged back up in late March. Yields on Federal Housing Administration mortgages rose to a new high in the first quarter, partly in response to the increases in Government-insured mortgage ceiling rates. The spread be­ tween yields on new corporate bonds and FHA mortgages widened substantially over the quarter as a whole, particularly in comparison with the last 2 months of 1969; but the yield advantage of mortgages was reduced somewhat in March as corporate rates began to rise again and FHA-mortgage yields turned down. □ INTEREST RATES PER CENT PER ANNUM 10 9 8 7 6 5 4 3 1967 1966 Monthly averages except FHA (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; FHA, weighted averages of private secondary market prices of new-home 30-year mortgages converted to annual yield (dashed line indicates period of adjustment to change in contractual interest rate); corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits, October 1969-January 1970 Interest rates paid on time and savings de­ tained from a survey conducted jointly by the posits were increased at many commercial Federal Reserve System and the FDIC as of banks after the Board of Governors and the January 31, 1970. The data reported by a Federal Deposit Insurance Corporation rais­ sample of all insured commercial banks have ed ceiling rates on such deposits in late been expanded to give universe estimates. January 1970. The new maximum permis­ The prompt upward adjustment of rates sible rates, together with the earlier ceilings at many banks and the resulting rate struc­ are shown on page All of this Bulletin.1 ture on January 31 reflected the continued At the time of the change to new ceilings pressure from high yields on market instru­ on January 21 virtually all of the large ments. Money market rates reached peak banks and most of the smaller ones had been levels in early January of this year, although paying the old ceiling rates for many they had receded slightly by the time the months. Rate increases in response to the new ceiling rates became effective. Yields on new ceilings were numerous in the 10-day 3-month Treasury bills, for example, were interval preceding the January 31 quarterly above 8 per cent in early January, and of­ survey of time and savings deposit rates.2 fering rates on prime 4- to 6-month com­ However, many banks that raised their rates mercial paper exceeded 9 per cent—well set the effective date for the increases at the above the ceiling rates on time deposits at beginning of February, or later in that banks. month. Changes after January 31 are not Rate increases near the end of January reflected in this survey. came too late to have any appreciable influ­ Information on changes in interest rates ence on deposit flows for the 3 months end­ paid by insured commercial banks and on ing January, which is the period covered by flows into time and savings deposits during the survey. In that period commercial banks the 3 months ending in January was ob­ experienced a further substantial net out­ flow of time and savings deposits—the third Note.—Caroline H. Cagle of the Board’s Division quarterly decline since the surveys were of Research and Statistics prepared this article. started in January 1967. The shrinkage in 1 The new ceiling rates on multiple-maturity time deposits reflected further massive outflows of deposits were not announced until March 3 but were made retroactive to January 21, 1970. large-denomination time deposits and a sub­ 2 Previous surveys of time and savings deposits at stantial loss of regular savings deposits. Con­ all member banks were conducted by the Board of Governors in late 1965, in early 1966, and quarterly sumer-type open account deposits in pass­ beginning in 1967. Beginning in 1968 the quarterly book or statement form continued to grow surveys were expanded to provide figures for all in­ sured commercial banks and were conducted jointly by rapidly, no doubt reflecting in part shifts the Board of Governors and the FDIC. The results of from savings deposits. Small-denomination earlier surveys have appeared in Bulletins in 1966, business-type time deposits also increased 1967, 1968, 1969, and 1970, the most recent being March 1970, pp. 211-24. slightly in the most recent quarter, as they Appendix tables for this article appear on pp. 415had in the comparable period of last year. 19 of this Bulletin. 408 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SELECTED SURVEY DATES IN 1969 AND FOR JANUARY 31. 1970 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits 1969 1970 1969 1970 (quarterly rate) Type of deposit Apr. 30, Oct. 31, 1969- 1969- Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Oct. 31, Jan. 31, 1969 1970 Total time and savings deposits........................... 13,268 13,290 13,161 13,148 180,801 178,318 175,485 173,404 -1.5 -1.2 Savings................................................................. 12,791 12,819 12,622 12,638 93,215 92,075 91,529 89,898 -.9 -1.8 Time deposits in denominations of less than $100,000—total.......................................... n.a. n.a. n.a. n.a. 60,978 63,934 64,324 66,672 2.7 3.7 Issued mainly to consumers—total.... 12,065 12,413 12,544 12,385 55,243 58,927 59,782 61,902 4.1 3.5 CD’s1................................................... 11,937 12,254 12,378 12,165 45,610 46,611 46,274 45,863 .8 -.9 Open account (passbook or state­ ment form)2............................... 1,658 2,064 2,293 2,753 9,633 12,317 13,508 16,039 18.8 18.7 Issued mainly (or in large part) to businesses—total............................... 7,508 7,372 6,998 7,043 5,735 5,007 4,542 4,770 -11.0 5.0 CD’s 3................................................... 6,755 6,685 6,405 6,339 4,058 3,464 3,029 3,161 -13.6 4.4 Open account4................................... 1,710 1,677 1,713 1,641 1,677 1,543 1,513 1,609 -5.0 6.3 Time deposits in denominations of $100,000 or more (issued mainly to businesses)— total.............................................................. 4,030 4,258 4,086 4,497 21,185 16,735 13,945 11,835 -18.9 -15.1 Negotiable CD’s............................... 1,946 1,906 1,630 2,001 12,853 9,525 7,686 6,445 -22.6 -16.1 Nonnegotiable CD’s......................... 2,263 2,486 2,569 2,587 6,048 5,411 4,729 3,986 -11.6 -15.7 Open account..................................... 552 534 523 475 2,284 1,799 1,530 1,404 -18.1 -8.2 Christmas savings and other special funds.. 7,984 7,982 7,472 7,894 5,423 5,573 5,686 4,999 2.4 -12.1 n.a. Not available. than $100,000, other than those described in footnote 2. These 1 Includes all time'C.D.’s in denominations of less than $100,000 instruments are issued both to consumers and to businesses. for which, in the judgment of the reporting banks, 50 per cent or more Note.—Data were compiled jointly by the Board of Governors of of the outstanding volume of deposits was issued to consumers the Federal Reserve System and the Federal Deposit Insurance Cor­ (nonbusiness holders). poration. For April 30, and July 31, 1969, and for Jan. 31,1970, the 2 Includes time deposits, open account, issued in passbook, state­ information was reported by a probability sample of all insured ment, or other forms that are direct alternatives for regular savings commercial banks; for Oct. 31,1969, the data for member banks were accounts. Most of these are believed to be in accounts totaling less reported by virtually all such banks and for insured nonmember than $100,000. banks by the same sample of these banks reporting in earlier surveys. 3 Includes all time C.D.’s in denominations of less than $100,000 Some deposit categories include a small amount of deposits out­ for which, in the judgment of the reporting bank, 50 per cent or more standing in a relatively few banks that no longer issue these types of of the outstanding volume of deposits was issued to businesses. deposits and are not"included in the number of issuing banks. Dollar 4 Includes time deposits, open account, in denominations of less amounts may not add to totals because of rounding. NET CHANGES IN DEPOSITS such deposits outstanding and the increased Total time and savings deposits held by in­ concentration of these holdings among de­ dividuals, partnerships, and corporations positors having relatively close working re­ (IPC) at insured commercial banks declined lationships with the banks. Other largeby $2.1 billion, or about 1.2 per cent, in denomination time deposits declined less the 3 months ending January 31, 1970. rapidly than large negotiable CD’s, as they (See Table 1.) This compares with a quar­ had in earlier quarters. The reduction in terly decline of 1.5 per cent in the April- these other large-denomination deposits was October period. about $870 million, or 14 per cent. Busi­ Large negotiable certificates of deposit, ness holders account for a much smaller part held in large part by corporate businesses, of these deposits than of large CD’s. accounted for a major part of the reduction. Holders of small-denomination time de­ However, the rate of decline in these de­ posits are mainly consumers, who are gen­ posits, $1.2 billion or 16 per cent, was much erally less rate-sensitive than corporations slower than in the two preceding quarters and institutional investors, which hold the and reflected in part the reduced level of bulk of the large-denomination deposits. 409 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 FEDERAL RESERVE BULLETIN □ MAY 1970 Nevertheless, in late 1969 and early 1970 On savings deposits about 36 per cent of consumers tended to divert increasing the banks raised their offering rate in the 3 amounts of savings into market instruments months ending January 31, 1970. (See Ap­ yielding much higher returns than those pendix Table 9.) Most of these increases available on bank deposits. Savings deposits, were from the old 4 per cent to the new AVi on which a 4 per cent ceiling rate had pre­ per cent ceiling. About 3 per cent of the in­ vailed until early this year, declined more creases, however, were at banks that had rapidly from October to January than in any been paying less than 4 per cent last October previous quarterly survey period, and con­ and that moved up to this level by January sumer CD’s also showed some further de­ 31. cline. Together these two deposit categories Nearly one-third of all insured commer­ had declined by more than $2.0 billion from cial banks holding two-fifths of all savings their October 31 level. deposits were offering to pay depositors 4.5 Only open-account deposits in passbook per cent as of the end of January. (See or statement form increased appreciably. Table 2.) However, half of the banks were The increase in these deposits—$2.5 billion, still offering only 4 per cent, and 15 per cent or nearly 19 per cent—was at about the were still paying 3.5 per cent or less. same quarterly rate as for April-October of The proportion of banks paying the new last year; no doubt part of this increase re­ AVi per cent ceiling on savings deposits flected shifts out of regular savings deposits varied by size and location of bank. Half of to obtain a higher interest rate. Only one the banks with total deposits of $100 mil­ out of every five banks offers this type of lion and over were at this level compared deposit, but the number of issuing banks has with less than one-third for banks of smaller more than doubled since January 1969 and size. In some geographic areas—such as the this number includes a high percentage of Boston, Kansas City, Dallas, and San Fran­ the largest banks. Issuing banks have almost cisco Reserve Districts—about half of all the universally offered the 5 per cent ceiling banks had increased their rates to 4.5 per rate and have introduced many unusual cent by January 31. This compares with less features that have considerable appeal for than one-seventh of all banks paying this depositors. rate in the Philadelphia and Minneapolis Small-denomination business-type de­ Reserve Districts, where low savings deposit posits also increased in the most recent rates have prevailed for some time. quarter. However, the growth was less rapid than in the comparable period of last year. On consumer-type time deposits the most common offering rate at most commercial RATE STRUCTURE AND RATE CHANGES banks was still 5 per cent on January 31. Nevertheless, about one-fourth of the banks As a result of the rapid response of banks to the new ceiling rates on time and savings that issue consumer CD’s and that account deposits, the structure of rates on these de­ for about the same proportion of such de­ posits on January 31 showed considerable posits had raised the most common rate on change from that prevailing last October. these instruments above 5 per cent by Jan­ As in previous periods following the raising uary 31. (See Appendix Table 2.) These of rate ceilings, the proportion of banks that banks were about equally divided between moved their rates promptly to the new ceil­ those that reported a rate of 5.5 per cent ings was greater for the largest banks than (the ceiling rate on deposits with maturities for smaller institutions. of 1 year up to but not including 2 years) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 411 TABLE 2 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON OCTOBER 31, 1969, AND JANUARY 31, 1970, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Jan. Oct. Jan. Oct. Jan. Oct. Jan. Oct. Jan. Oct. Jan Oct. 31 31 31 31 31 31 31 31 31 31 31 31 Amount of deposits (in millions of dollars) Number of banks, or percentage distribution or percentage distribution Savings deposits: 12,638 12,622 12,152 12,137 486 485 89,898 91,529 36,778 37,692 53,120 53,836 Percentage distribution by most com­ mon rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 3.50 or less........................................ 15.2 19.3 15.6 19.8 5.2 6.8 5.2 6.2 8.9 10.0 2.6 3.5 3.51-4.00........................................... 52.1 80.7 52.4 80.2 44.2 93.2 53.2 93.8 54.7 90.0 52.2 96.5 4 01-4.50........................................... 32.7 32.0 50.6 41.6 36.4 45.2 Time deposits in denominations of less than $100,000: Issued mainly to consumers: Issuing banks........................................ 12,385 12,541 11,913 12,064 472 477 61,902 59,776 35,665 33,709 26,238 26,067 Percentage distribution by most common rate paid on new de­ posits : T otal.................................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 4.50 or less........................................ 2.0 3.0 2.0 3.1 .6 .8 .4 .6 .7 1.0 0) .1 4.51-5.00........................................... 74.5 97.0 74.2 96.9 83.9 99.2 76.3 99.4 78.3 99.0 73.6 99.9 5.01-5.25........................................... 0) O) .4 . 1 O) .2 5.26-5.50........................................... 12.5 12.6 8.9 11.2 11.2 11.3 5 51-5.75........................................... 11.0 11.2 6.2 12.0 9.8 14.9 Issued mainly to businesses: Issuing banks........................................ 7,043 6,979 6,635 6,579 408 400 4,734 4,498 2,766 2,606 1,968 1,893 Percentage distribution by most common rate paid on new de­ posits : 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 4.50 or less........................................ 6.9 6.8 7.1 6.8 5.9 7.5 2.5 2.2 3.2 2.7 1.4 1.7 4.51-5.00........................................... 73.7 93.2 73.3 93.2 78.2 92.5 83.0 97.8 86.0 97.3 78.9 98.3 5.01-5.25........................................... O) O) .2 O) 0) 0) 5 26-5 50 12.1 12.1 11.8 9.7 7.4 12.9 5 51-5 75 ...................... 7.3 7.5 3.9 4.8 3.4 6.8 Time deposits in denominations of $100,000 or more: Issuing banks........................................ 4,497 4,069 4,022 3,602 475 467 11,832 13,797 2,577 2,806 9,256 10,991 Percentage distribution by most common rate paid on new de­ posits : 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 5.75 or less........................................ 28.8 37.1 30.5 38.7 13.6 24.0 8.3 17.3 22.3 27.6 4.4 14.7 5.76-6.00........................................... 13.6 15.9 14.1 15.4 9.3 19.9 7.2 21.7 13.2 16.4 5.5 23.0 6.01-6.25........................................... 33.4 47.0 32.1 45.9 43.8 56.1 35.1 61.0 33.4 56.0 35.6 62.3 6 26-6 50 2.3 2.2 3.6 2.3 1.7 2.5 6 51-6 75 .................................. 1.9 1.5 5.3 14.1 3.3 17.1 6 76_7 00 4.1 3.8 7.2 6.9 4.0 7.7 7 01-7 25 0) .4 .1 .1 7 26-7 50 15.9 15.8 16.8 26.0 22.1 27.1 1 Less than 0.05 per cent. Note.—The most common interest rate for each instrument or other tables, the'most common rate reported by most banks was the group of instruments refers to the basic stated rate per annum (before top rate in the'range; for example, 4.00, 4.50, etc. On business-type compounding) in effect on the survey date that was generating the time deposits in denominations of $100,000 and over, however, some largest dollar volume of deposit inflows. If the posted rates were large banks have had on past surveys rates at intervals of ^ of a unchanged during the 30-day period just preceding the survey date, percentage point, such as 5.625 and 5.875. the rate reported as the most common rate was the rate in effect on For a description of time deposits in denominations of less than the largest dollar volume of deposit inflows during that 30-day period. $100,000 issued mainly to consumers and those issued mainly to If the rate changed during that period, the rate reported was the rate business, see notes to Table 1. Time deposits in denominations of prevailing on the largest dollar volume of inflows from the time of $100,000 and over (issued mainly to businesses) include negotiable the last rate change to the survey date. and nonnegotiable CD’s and open accounts. Figures may not add to While rate ranges of lA of a percentage point are shown in this and totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 FEDERAL RESERVE BULLETIN □ MAY 1970 and those that reported 5.75 per cent (the such deposits reported a most common rate ceiling on deposits with maturities of 2 years of 5 per cent on January 31. About one-fifth and over). of the 7,000 banks that issue instruments of The fact that rate increases on consumer this kind reported they were paying a rate CD’s were relatively less numerous than on above the old ceiling at the end of January; savings accounts by January 31 probably 12 per cent stated this rate was 5.5 per cent reflects in part the reporting in these surveys and 7 per cent indicated it was 5.75 per cent. of the most common rate as opposed to the While most of the largest money market highest rate offered, and in part it reflects banks raised their rates on time deposits in the timing of rate changes at many banks denominations of $100,000 and over im­ just preceding the survey date. In raising mediately after the new ceiling rates were rates on long-maturity certificates, some announced, only about one-third of all banks—probably in an effort to minimize banks with total deposits of $100 million the cost impact of rate changes—simultane­ and over had raised their most common rate ously raised the minimum denominations re­ above the old 6lA per cent ceiling by Jan­ quired in order to inhibit transfers from sav­ uary 31. Half of these rate increases were to ings accounts on which a lower rate is the new maximum of IV2 per cent. As of the paid. Accordingly at such banks, the “most survey date, issuing banks paying rates common rate” on certificates at the time of above the old 6V4 per cent ceiling accounted the survey—that is, the rate bringing in the for about half of the large-denomination largest volume of new deposits—might still time deposits outstanding, and those banks have been the old 5 per cent rate on instru­ offering the new IV2 per cent maximum ac­ ments with shorter maturities and smaller counted for more than one-fourth of the denominations. By contrast, on savings de­ total. posits, where minimum deposit require­ ments, if any, are negligible, the most com­ AVERAGE INTEREST RATES mon rate reported in the survey was proba­ As a result of rate increases made in late bly also the maximum rate paid. January, weighted average interest rates paid On consumer-type open account deposits on most forms of time and savings deposits —a category that includes the “golden pass­ were higher on January 31, 1970, than they book,” 90-day-notice deposits—most banks were paying 5 per cent on the survey date, had been 3 months earlier. On all time since the bulk of these deposits fit the defini­ and savings deposits held by individuals, tion of multiple-maturity deposits on which partnerships, and corporations the average the rate ceilings were not raised by super­ rate paid by insured commercial banks was visory authorities until March 3. (See Ap­ 4.71 per cent, 20 basis points higher than pendix Table 3.) However, about 4 per cent on October 31, 1969. (See Table 3.) For of the issuing banks had raised their offer­ savings deposits the rate had increased from ing rate on single-maturity open account de­ 3.95 to 4.17 per cent. On consumer CD’s posits to the new 5% per cent ceiling by the new average was 5.17 per cent, while January 31. on open account deposits in passbook form The rate structure on small-denomination it remained near 5 per cent. Because the business-type time deposits was similar to new ceiling-rate structure permitted banks that on consumer-type CD’s. About three- to pay rates as high as IV2 per cent on time fourths of the banks holding four-fifths of deposits in denominations of $100,000 and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 413 over with maturities of 1 year or more, the time deposits were at banks in the largest largest rate increases were on large negotia­ size class—total deposits of $500 million ble CD’s and other large-denomination in­ and over. By contrast, the lowest rates were struments, on which average rates paid had generally paid by the smallest banks (total moved up to 6.68 and 6.44 per cent, re­ deposits of less than $10 million). One ex­ spectively, by January 31—63 and 49 basis ception was on consumer-type open account points above the October 31 levels. deposits, where with few exceptions banks in The highest rates on nearly all types of all size classes were paying 5 per cent. □ TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON JANUARY 31, 1970 Per cent per annum Business-type time deposits Consumer-type time deposits in denominations of— All Savings Bank location and size of bank time and and Time, $100,000 or more (total deposits in millions of dollars) savings consumer- Savings open deposits type time account Less than deposits Total CD’s (passbook $100,0001 Nego­ or state­ tiable Other ment form) CD’s All banks 4.71 4.56 4.17 5.13 5.17 5.02 5.06 6.68 6.44 Less than 10................................ 4.75 4.72 4.04 5.16 5.17 4.96 5.00 6.28 5.85 10-50............................................ 4.63 4.56 4.08 5.10 5.12 4.99 5.03 6.48 5.89 50-100.......................................... 4.72 4.58 4.22 5.12 5.17 5.01 5.10 6.76 6.43 100-500........................................ 4.67 4.48 4.17 5.09 5.13 5.00 5.06 6.61 6.35 500 and over................................ 4.79 4.54 4.23 5.18 5.28 5.04 5.15 6.74 6.66 Banks in— Selected large SMSA’s2: All size groups............................ 4.73 4.52 4.20 5.14 5.21 5.03 5.10 6.72 6.55 Less than 10............................ 4.61 4.54 4.13 5.12 5.14 4.99 5.10 6.28 6.23 10-50........................................ 4.57 4.48 4.12 5.09 5.12 4.96 5.06 6.39 6.16 50-100...................................... 4.71 4.56 4.23 5.12 5.18 5.00 5.14 6.83 6.39 100-500.................................... 4.69 4.47 4.19 5.09 5.13 5.01 5.08 6.69 6.34 500 and over........................... 4.80 4.54 4.23 5.18 5.29 5.04 5.15 6.75 6.66 All other SMSA’s: All size groups............................ 4.67 4.54 4.16 5.10 5.13 5.01 5.04 6.49 6.43 Less than 10............................ 4.61 4.55 4.04 5.11 5.12 5.03 4.99 6.33 5.63 10-50........................................ 4.60 4.53 4.11 5.07 5.08 5.04 5.03 6.48 6.17 50-100...................................... 4.76 4.59 4.20 5.12 5.18 5.01 5.06 6.74 6.51 100-500.................................... 4.67 4.53 4.18 5.11 5.15 4.99 5.03 6.40 6.43 500 and over........................... 4.73 4.53 4.18 5.11 5.14 5.00 5.16 6.41 6.68 Banks outside SMSA's: All size groups................................ 4.70 4.66 4.05 5.13 5.15 4.99 5.01 6.48 5.79 Less than 10................................ 4.79 4.76 4.02 5.17 5.18 4.94 4.99 6.26 5.84 10-50............................................ 4.67 4.62 4.04 5.11 5.13 5.00 5.02 6.59 5.57 50-100.......................................... 4.67 4.61 4.24 5.10 5.14 5.00 5.06 6.30 6.25 100-500........................................ 4.42 4.32 3.97 5.00 5.00 5.00 5.00 6.30 6.02 500 and over................................ 4.97 4.85 4.50 5.17 5.50 5.00 5.50 7.50 »Includes CD’s'and small-demonination time deposits, open account, other than those in passbook or statement form. 2 The selected large Standard Metropolitan Statistical Areas, as defined by the Bureau of the Budget and arranged by size of population in the 1960 census, are as follows: New York City Buffalo San Bernardino-Riverside Norfolk-Portsmouth Nashville Los Angeles Houston Tampa-St. Petersburg Gary-Hammond-E. Chicago Salt Lake City Chicago Milwaukee Louisville Ft. Worth Flint Philadelphia Paterson-Clifton-Passaic Indianapolis Syracuse Wichita Detroit Seattle Dayton Hartford Ft. Lauderdale-Hollywood San Francisco-Oakland Dallas San Antonio Akron Orlando Boston Cincinnati Columbus Oklahoma City Charlotte Pittsburgh Kansas City Phoenix Youngstown-Warren Des Moines St. Louis San Diego Albany-Schenectady-Troy Sacramento Ft. Wayne Washington, D.C. Atlanta San Jose Honolulu Baton Rouge Cleveland Miami Birmingham Omaha West Palm Beach Baltimore Denver Memphis Jacksonville Rockford Newark New Orleans Jersey City Tulsa Jackson, Miss. Minneapolis-St. Paul Portland, Ore. Rochester Richmond N<m.—The average rates were calculated by weighting the most common rate reported on each type of deposit at each bank by the amount of that type of deposit outstanding. Christmas savings and other special funds, for which no rate information was collected, were excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 FEDERAL RESERVE BULLETIN □ MAY 1970 NOTES TO APPENDIX TABLES 1-8: 1 Less than $500,000. Note.—Data were compiled from information reported by a 2 Omitted to avoid individual bank disclosure. probability sample of all insured commercial banks expanded to pro­ 3 Includes all CD’s in denominations of less than $100,000 of vide universe estimates. which, in the judgment of the issuing bank, 50 per cent or more Figures exclude banks that'reported no interest rate paid and that of the total amount outstanding on the survey date was issued to held no deposits on the survey dates, and they also exclude a few nonbusiness (consumer) holders. banks that had discontinued issuing these instruments but still had 4 Includes all CD’s in denominations of less than $100,000 of some deposits outstanding on the survey date. Time deposits, open which, in the judgment of the reporting bank, 50 per cent or more of account, exclude Christmas savings and other special accounts. Dollar the total amount outstanding on the survey date was issued to amounts may not add to totals because of rounding. businesses. In the headings of these tables under “Most common rate paid s Includes all time deposits, open account, in denominations o* (per cent)” the rates shown are those being paid by nearly all reporting less than $100,000 except those in passbook or statement form used banks. However, for the relatively few banks that reported a rate in as direct alternatives for savings deposits, shown separately in between those shown, the bank was included in the next higher rate. Appendix Table 3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 415 APPENDIX TABLE 1— SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.00 3.00 or less 3.50 4.00 4.50 or less 3.50 4.00 4.50 NUMBER OF BANKS MILLIONS OF DOLLARS All banks....................................................................... 12,638 1,387 539 6,583 4,129 89,898 2,546 2,095 47,833 37,424 Size of bank (total deposits in millions oi dollars) Less than 10................................................................. 7,414 1,015 328 3,899 2,172 7,230 551 190 4,419 2.070 10-50.......................................................................... 4,262 351 188 2,272 1,451 20,954 1,330 908 11,644 7.071 50-100....................................................................... 476 9 10 197 260 8,594 144 141 4,055 4,254 100-500..................................................................... 379 12 11 176 180 19,613 521 587 10,116 8,389 500 and over............................................................ 107 2 39 66 33,507 (2) 17,598 15,640 Federal Reserve district: Boston....................................................................... 367 4 1 179 183 4,031 52 (2) 1,556 2,364 New York................................................................. 442 5 7 318 112 14,526 348 232 6,710 7,236 Philadelphia............................................................. 498 113 29 311 45 5,925 533 588 3,090 1.713 Cleveland.................................................................. 820 82 48 537 153 9,257 296 358 5,571 3,033 Richmond................................................................. 700 9 2 453 236 6,238 23 (2) 3,321 2,816 Atlanta...................................................................... 1,501 49 48 814 590 6,373 14 198 3,123 3,037 Chicago..................................................................... 2,439 386 104 1,234 715 15,865 627 285 6,239 8.713 St. Louis................................................................... 1,274 290 27 630 327 2,664 359 68 1,442 794 Minneapolis............................................................. 1,357 324 226 619 188 1,881 188 222 836 635 Kansas City............................................................. 1,663 121 2 782 758 3,126 92 (2) 1,527 1,506 Dallas........................................................................ 1,198 4 45 501 648 3,063 12 7 971 2,072 San Francisco.......................................................... 379 205 174 16,950 13,446 3,504 APPENDIX TABLE 2— CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— ISSUED MAINLY TO CONSUMERS 3 Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 5.00 5.25 5.50 5.75 or 5.00 5.25 5.50 5.75 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................ 12,165 203 8,909 7 1,653 1,393 45,863 164 32,971 51 6,480 6,196 Size of bank (total deposits in millions of dollars): Less than 10......................... 7,247 138 5,019 1,096 994 10,421 104 7,340 1,553 1,425 10-50...................................... 4,011 59 3,202 420 326 15,624 57 12,489 12 1,499 1,568 50-100.................................... 453 343 77 33 3,948 2,789 790 370 100-500.................................. 353 274 44 27 6,475 5,021 (2) 860 561 500 and over......................... 101 71 16 13 9,395 5,331 (2) 1,779 2,274 Federal Reserve district: Boston..................................... 251 220 28 239 225 14 New York............................. 294 264 12 9 1,781 0)2 1,570 (2) 155 16 Philadelphia.......................... 463 409 31 11 3,615 29 3,110 250 226 Cleveland................................ 811 634 44 71 3.393 28 2,601 (2) 305 457 Richmond............................... 637 480 119 37 2,529 1,880 312 336 Atlanta.................................... 1,474 1,031 207 225 4,010 2,941 (2) 364 700 Chicago................................... 2,351 1,713 317 269 9,805 90 6,487 1,578 1,650 St. Louis.................................. 1,296 959 148 184 4.393 4 3,285 487 618 Minneapolis........................... 1,285 1,067 119 99 4,443 3,984 320 139 Kansas City............................ 1,748 48 1,150 328 220 3,718 2,687 (2) 664 351 Dallas...................................... 1,214 5 724 271 214 2,856 1,707 829 319 San Francisco......................... 341 258 29 54 5,080 2,494 1,203 1,383 For notes to Appendix tables 1-8, see p. 414. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

416 FEDERAL RESERVE BULLETIN □ MAY 1970 APPENDIX TABLE 3— TIME DEPOSITS, OPEN ACCOUNT, IPC— CONSUMER-TYPE IN PASSBOOK OR STATEMENT FORM Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 5.00 5.25 5.50 5.75 or 5.00 5.25 5.50 5.75 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................... 2,753 211 2,437 102 16,039 107 15,429 (2) (2) 445 Size of bank (total deposits in millions of dollars): Less than 10....................... 893 180 654 503 38 452 13 10-50................................... 1,278 21 1,216 3,287 55 3,195 37 50-100................................. 284 4 278 1,881 1,867 (2) (2) 100-500............................... 220 6 212 3,266 3,198 (2) (2) 500 and over......................... 78 77 7,102 6,717 (2) Federal Reserve district: 8 Boston.................................... 246 244 1,324 1,320 New York............................. 178 4 172 2,283 1,860 (2) Philadelphia......................... 90 7 83 403 403 Cleveland.............................. 214 23 191 1,388 1,388 Richmond............................. 271 29 219 1,351 1,348 2 Atlanta.................................. 467 50 402 1,503 85 1,394 (2) 20 Chicago.................................. 620 17 579 4,561 6 4,553 St. Louis................................ 218 71 124 222 2 213 Minneapolis......................... 20 20 72 72 Kansas City.......................... 126 123 235 235 Dallas.................................... 195 183 459 (,2i 433 (2) 10 San Francisco....................... 108 97 2,237 2,211 15 APPENDIX TABLE 4— CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF LESS THAN $100,000— ISSUED MAINLY TO BUSINESSES 4 Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 5.00 5.25 5.50 5.75 or 5.00 5.25 5.50 5.75 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................... 6,339 131 4, 835 483 3,161 26 2,520 (2) 426 188 Size of bank (total deposits in millions of dollars): Less than 10......................... 3,229 2,319 497 324 569 21 457 63 28 10-50....................................... 2,457 2,048 250 122 1,025 3 909 (2) 69 44 50-100..................................... 307 245 39 20 266 1 188 61 16 100-500................................... 265 211 39 12 701 (2) 568 (2)‘ 63 69 500 and over......................... 81 65 10 5 600 (2) 398 169 32 Federal Reserve district: Boston....................... 220 211 2 4 62 59 (2) 3 New York................. 250 228 10 9 258 2 226 30 2 Philadelphia............. 222 201 1 9 115 15 91 (2) 8 Cleveland. 403 362 10 29 111 (2) 92 (2) 14 5 Richmond. 364 312 40 12 295 265 24 6 Atlanta... 736 566 117 51 320 * (2)' 196 (2)' 104 19 Chicago........ 1,347 946 228 164 495 2 337 50 105 St. Louis.... 578 480 49 1 260 1 255 4 Minneapolis. 526 447 53 26 353 348 3 Kansas City... 674 392 148 105 199 5 154 36 5 Dallas............... 754 513 164 53 296 1 219 65 12 San Francisco. 265 230 13 20 395 (2) 279 93 21 For notes to Appendix tables 1-8, see p. 414. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 417 APPENDIX TABLE 5—TIME DEPOSITS, OPEN ACCOUNT, IPC, IN DENOMINATONS OF LESS THAN $100,000— BUSINESS-TYPE 5 Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 4.50 Total 4.50 or 5.00 5.25 5.50 5.75 or 5.00 5.25 5.50 5.75 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................ ,641 619 881 34 106 1,575 113 1,397 (2) 30 34 Size of bank (total deposits in millions of dollars): Less than 10......................... 588 231 298 23 191 143 3 10-50...................................... 677 299 317 517 477 10 50-100..................................... 147 33 105 196 174 (2) 13 1 100-500................................... 158 38 113 463 440 2 (2) 500 and over......................... 71 18 48 207 162 (2) 19 Federal Reserve district: Boston.................................... 91 35 51 , 21 5 16 8O) New York............................. 262 108 151 , 324 28 276 (2) Philadelphia.......................... 165 102 62 , 200 7 192 Cleveland................................ 144 124 20 . 56 16 41 Richmond............................... 192 80 109 . 2 162 17 145 (2) (2i Atlanta.................................... 231 37 166 . 28 123 1 119 Chicago................................... 128 33 72 2 20 267 3 262 (2) <2] l St. Louis.................................. 93 33 7 . 23 30 57 32 18 6 Minneapolis........................... 48 48 66 66 Kansas City............................ 81 32 40 . 36 34 O) Dallas...................................... 115 28 82 . 101 86 14 San Francisco........................ 91 7 73 . 160 143 (2) '*4* APPENDIX TABLE 6— NEGOTIABLE CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 5.75 Total 5.75 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................... 2,001 353 338 708 56 44 118 1 383 6,445 243 4312,528 141 654 607 (2)1,840 Size of bank (total deposits in mil­ lions of dollars): Less than 10........................... 451 137 45 121 31 39 78 86 24 7 29 4 4 18 10-50........................................ 1,008 160 225 361 9 18 36 199 541 36 139 183 2 24 24 133 50-100..................................... 212 29 36 77 3 8 14 45 479 31 25 167 4 23 32 196 100-500................................... 233 21 23 109 10 7 21 1 41 1,801 109 89 816 60 55 231 (2) 440 500 and over.......................... 97 6 9 40 3 11 8 20 3,538 42 1721,333 71 552 315 1,053 Federal Reserve district: Boston..................................... 123 7 41 58 1 1 11 4 269 19 20 199 (2) (2) 21 6 New York.............................. 156 26 39 73 2 6 3 7 1,070 26 137 451 (2) 237 17 165 Philadelphia........................... 123 55 2 53 9 3 1 150 16 (2) 60 1 35 (2) Cleveland................................ 90 29 7 24 30 357 5 3 125 224 Richmond.............................. 89 7 56 13 3 2 1 7 298 18 40 88 8 (2) (2) 140 Atlanta.................................... 298 47 58 93 4 9 87 373 35 44 124 22 56 93 Chicago.................................. 273 70 30 110 3 5 33 1 21 720 58 41 336 24 117 57 (2) 85 St. Louis.................................. 100 6 7 13 24 1 24 25 163 9 6 57 20 (2) 9 60 Minneapolis........................... 105 46 25 21 2 1 6 4 123 3 6 62 (2) (2) 26 10 Kansas City................... 175 32 16 58 5 6 9 49 300 3 21 66 13 10 138 48 Dallas...................................... 313 21 23 125 2 13 15 114 1,128 21 15 382 (2) 26 241 430 San Francisco....................... 156 7 34 67 1 6 7 34 1,495 28 64 578 (2) 209 38 574 For notes to Appendix tables 1-8, see p. 414. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 FEDERAL RESERVE BULLETIN □ MAY 1970 APPENDIX TABLE 7—NONNEGOTIABLE CERTIFICATES OF DEPOSIT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 5.75 Total 5.75 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 less NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................... 2,587 945 296 801 52 50 76 1 366 3,984 648 377 970 124 374 174 (2) 1,312 Size oi bank (total deposits in mil­ lions oi dollars): Less than 10........................... 770 329 38 151 193 259 136 9 37 2 6 43 10-50....................................... 1,256 427 200 470 95 650 211 99 263 21 8 45 50-100..................................... 270 100 24 86 38 420 69 32 152 14 26 120 100-500................................... 215 66 26 79 26 838 130 65 333 26 31 (2) 214 500 and over.......................... 76 23 8 15 14 1,819 101 172 185 311 103 889 Federal Reserve district: Boston.................................... 106 26 47 57 7 13 31 (2) 2 (2? New York.............................. 123 49 32 681 129 105 150 (2) 266 Philadelphia........................... 93 42 30 119 27 13 51 9 18 Cleveland................................ 182 124 37 147 53 6 44 (2) 12 24 Richmond............................. 214 101 59 346 129 10 94 (2) (2) 32 Atlanta................................... 344 86 114 423 29 26 165 3 64 110 Chicago................................ 347 146 59 445 102 35 132 (2) 12 135 St. Louis............................... 223 58 95 196 92 12 41 (2) (2) (2) 29 Minneapolis......................... 162 92 31 62 14 11 13 (2) 2 Kansas City......................... 237 44 108 124 12 11 67 (2) 19 Dallas.................................... 446 163 131 387 42 35 117 (2) 17 150 San'Francisco..................... 110 14 58 997 12 100 65 (2) (2) 790 APPENDIX TABLE 8—TIME DEPOSITS, OPEN ACCOUNT, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on January 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 5.75 Total 5.75 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 or 6.00 6.25 6.50 6.75 7.00 7.25 7.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................... 475 277 57 96 30 1,383 342 378 425 (2) 86 Size of bank (total deposits in mil­ lions of dollars): Less than 10........................... 110 55 23 15 10-50....................................... 147 53 30 7 (2) (2) 50-100..................................... 55 33 13 9 (2) 100-500................................... 100 127 47 68 (2) 6 500 and over......................... 63 1,116 228 279 "8 425 (2) 66 Federal Reserve district: Boston................................... 16 20 (2) O) New York............................. 84 883 49 287 60 403 Philadelphia......................... 69 111 1 6 (2) Cleveland............................... 20 26 20 <2? Richmond.............................. 18 16 13 Atlanta.................................. 112 69 19 18 27 5 Chicago................................ 67 36 11 14 (2) (2) (2) St. Louis............................... 4 5 5 Minneapolis......................... 1 (2) (2) Kansas City......................... 13 4 4 Dallas.................................... 37 40 16 14 San Francisco..................... 34 172 76 (2) (2) (2) 66 For notes to Appendix Tables 1-8, see p. 414. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 419 APPENDIX TABLE 9— INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS, IPC, BETWEEN OCTOBER 31, 1969 AND JANUARY 31, 1970 Business-type time Savings Consumer-type time Instruments of less than Instruments of $100,000 $100,000 or more Group Size of bank (total Size of bank (total Size of bank (total Size of bank (total deposits in millions deposits in millions deposits in millions deposits in millions of dollars) of dollars) of dollars) of dollars) All All All All bank bank bank bank sizes Less 10- 100 sizes Less 10- 100 sizes Less 10- 100 sizes Less 10- 100 than 100 and than 100 and than 100 and than 100 and 10 over 10 over 10 over 10 over Number of issuing banks Jan. 13,1970............... 12,588 7,386 4,720 482 12,341 7,341 4,530 470 7,002 3,537 3,060 405 4,480 1,311 2,697 472 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP * Total. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, Oct. 31, 1969-Jan. 31, 1970. 63.1 65.2 61.5 47.5 73.1 67.8 80.8 82.8 65.8 57.4 73.9 77.8 46.6 38.3 51.0 44.7 Banks raising rate........ 36.4 34.1 38.3 52.1 24.5 28.9 18.1 16.4 19.8 23.8 15.4 18.3 30.5 24.7 30.3 47.5 New most common rate1 (per cent) 3.50 or less........ 0.3 0.4 (2) (2) (2) 3.51-4.0 0 3.6 4.6 2.4 1.0 0.1 0.3 4.01-4.5 0 32.5 29.1 35.9 51.0 0.1 0.1 (2) 0.8 0.7 To 1.0 0.1 0.2 4.51-4.7 5 4.76-5.0 0 1.4 1.8 0.9 0.6 0.8 0.6 0.9 1.2 0.1 0.2 (2) 5.01-5.2 5 (2) 0.1 0.4 (2) 0.2 0.5 1.8 (2) 5.26-5.5 0 12.1 13. 9.6 8.9 .ff 12.9 9.0 11.6 1.1 1.8 0.9 0.2 5.51-5.7 5 10.9 13. 7.5 6.4 6.9 9.4 4.4 4.2 0.6 1.0 0.2 5.76-6.0 0 0.7 0.9 1.9 6.01-6.2 5 8.4 6.7 8.5 12.1 6.26-6.5 0 1.4 1.8 0.9 3.6 6.51-6.7 5 1.9 0.2 2.2 5.1 6.76-7.0 0 3.5 2.8 3.2 7.2 7.01-7.2 5 (2) 0.4 7.26-7.5 0 12.1 9.5 12.5 16.7 Banks reducing rate 0.4 0.6 0.1 0.4 0.4 0.7 0.1 0.2 1.5 1.5 1.5 0.7 7.1 6.2 7.7 6.7 New most common rate1 (per cent) 3.50 or less........... 0.4 0.6 0.1 0.4 (2) (2) 0.2 (2) 0.4 0.1 0.1 0.2 3.51-4.0 0 (2) (2) (2) 0.2 1.2 1.5 1.1 4.01-4.5 0 0.4 0.6 (2) (2) (2) 0.5 (2) (2) 0.2 4.51-4.7 5 (2) (2) 4.76-5.0 0 (2) 0.2 2.8 3.3 2.6 2.5 5.01-5.2 5 (2) 0.4 5.26-5.5 0 ■1 0.5 0.'8 0.3 0.6 5.51-5.7 5 0.1 0.2 0.2 5.76-6.0 0 3.5 2.1 4.4 2.5 6.01-6.2 5 (2) (2) 6.26-6.5 0 6.51-6.7 5 6.76-7.0 0 7.01-7.2 5 Banks introducing new instrument...................... 0.1 0.1 (2) 2.0 2.6 1.0 0.6 15.8 30.8 11.0 1.1 Most common rate1 (per cent) 4.00 or less............. 0.1 0.1 (2) (2) 0.2 0.6 0.9 0.2 4.01-4.5 0 (2) (2) 4.51-4.7 5 4.76-5.0 0 - 1.4 1.8 0.9 0.4 3.3 6.8 2.2 5.01-5.2 5 0.5 1.8 5.26-5.5 0 0.9 2.4 0.3 5.51-5.7 5 (2) 5.76-6.0 0 ,<21 2.0 1.3 6.01-6.2 5 3.6 1.5 5.3 6.26-6.5 0 0.9 3.1 (2) 6.51-6.7 5 6.76-7.0 0 0.6 "2.0 o.i 2 7.01-7.2 5 7.26-7.5 0 3.9 ii.’ 3 0.9 0.2 * Shaded areas indicate that rates shown in the stub are higher than the 1970, with the rates reported by the same banks on October 31,1969. The maximum permissible rate on the various instruments. table excludes banks that issued these types of deposits on October 31, but 1 For description of most common rate, see Note to Table 2, p. 411. no longer issued them on January 31. Percentages may not add to totals 2 Less than 0.05 per cent. because of rounding. Note.—This table was compiled by comparing rates as reported by the For a description of consumer-type time deposits and business-type time sample banks that had these types of deposits outstanding on January 31, deposits, see Table 1, p. 409. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SDR’s in Federal Reserve Operations and Statistics Special Drawing Rights—the new interna­ million in January, $20 million in February, tional reserve asset—came into existence on $1 million in March, and $6 million in January 1 of this year, when the Interna­ April. tional Monetary Fund (IMF) allocated SDR’s equivalent to $3,414 million to 104 BALANCE OF PAYMENTS countries participating in the system. (See Changes in U.S. holdings of SDR’s are re­ the Board’s Annual Report for 1969, pp. 60 flected in the balance of payments accounts, and 61.) This article explains how U.S. along with changes in our other international holdings of SDR’s, and changes in such hold­ reserve assets (gold, convertible foreign cur­ ings, affect Federal Reserve operations and rencies, and reserve position in IMF): spe­ accounts; also, how they are reflected in cifically in Table 1 on page A73, in the statistics on U.S. international monetary item “Change in U.S. official reserve assets.” reserves, the U.S. balance of payments, and A contra-entry for the allocation will be U.S. flows of funds, published in the Bulle­ made to balance the accounts; this new entry tin. will be separated from the customary capital and current-account categories. INTERNATIONAL RESERVES This table will show SDR’s for the first Data on U.S. holdings of international re­ time in the balance of payments results for serve assets appear in Table 4 at the top of the first quarter of 1970, which will appear page A75 of this issue of the Bulletin. in the July Bulletin. End-of-month figures for U.S. holdings of SDR’s for January through April 1970 are FEDERAL RESERVE OPERATIONS AND ACCOUNTS shown in the last column of this table (and are included in the “Total” column for each Under the law providing for U.S. participa­ of those months). As indicated in footnote tion in the SDR system (Public Law 90-349: 6 of the table, each monthly entry includes text is in the July 1968 Bulletin, pp. 638the initial IMF allocation of $867 million 39), the Secretary of the Treasury is author­ of SDR’s to the United States, plus U.S. net ized to issue SDR certificates (broadly com­ acquisitions of SDR’s from other participat­ parable with gold certificates) to the ing countries and from the IMF since the Federal Reserve Banks—and these Banks beginning of the SDR system. Inasmuch as are thereby required to purchase them—for the United States had sold no SDR’s through the purpose of financing SDR acquisitions or April, and had used only a negligible amount for financing exchange stabilization opera­ in transactions with the IMF related to in­ tions. By the end of April, $400 million of terest and charges, the changes in the month­ U.S. holdings of SDR’s (under Public Law ly figures shown reflect mainly gross U.S. 90-349, these are held by the Exchange purchases of SDR’s from other participating Stabilization Fund) had been monetized in countries; such purchases amounted to $32 this way. 421 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 FEDERAL RESERVE BULLETIN □ MAY 1970 The Treasury, when it wishes to monetize Federal Reserve Bank holdings of SDR a specific amount of SDR’s, authorizes and certificates are also reflected in the consoli­ requests the Federal Reserve Bank of New dated condition statement for banks and the York to credit a special account of the monetary system, shown on page A18, where Treasury with the total amount of such they are included in the first column on the monetization and to debit the Bank’s SDR asset side, in combination with the gold certificate account by a corresponding stock.2 The corresponding liability—while amount. The Board of Governors of the Fed­ the funds credited against the SDR certifi­ eral Reserve System then distributes by for­ cates are still in the Treasury’s special ac­ mula, among all 12 Federal Reserve Banks count—is included in the last column of the in proportion to their respective totals of table, “Capital and misc. accounts, net.” Federal Reserve note liabilities at the end of Finally, Federal Reserve Bank holdings the preceding year, SDR certificates issued of SDR certificates appear in the table show­ in the first instance to the Federal Reserve ing “Member Bank Reserves, Federal Re­ Bank of New York.1 Each of the other Fed­ serve Bank Credit, and Related Items,” on eral Reserve Banks pays for its share of the pages A4 and A5. They are shown in the SDR certificates through its gold certificate next-to-last column on page A4, next to the account, with a corresponding credit to the “Gold stock” column, as one of the “Factors gold certificate account of the Federal Re­ supplying reserve funds.” The corresponding serve Bank of New York. Each of the Fed­ entry on page A5 (“Factors absorbing re­ eral Reserve Banks except New York there­ serve funds”) appears initially—unless the fore has an increase in one asset (SDR cer­ funds do not remain in the Treasury’s special tificates) offset by a decline in another asset account long enough to be reflected there— (gold certificates). The Federal Reserve in the “Other” column, under “Deposits, Bank of New York has an increase in its other than member bank reserves, with F.R. deposit liabilities (special account of the Banks.” Treasury) matched by increases in two as­ Weekly figures for the series shown in the sets (SDR certificates—to the extent of its tables on pages A4 and A5 and on A12 and share in the over-all distribution effected by A13 are also published weekly by the Board the Board of Governors—and gold certifi­ of Governors in the H.4.1 release—together cates). with H.4.1(a), (b), and (c)—“Factors Federal Reserve Bank holdings of SDR Affecting Bank Reserves and Condition certificates are the second entry under assets, Statement of F.R. Banks.” And once each “Special Drawing Rights certificate ac­ month—in the issue providing data for the count,” in the tables on the condition of the last Wednesday of the month—the weekly Federal Reserve Banks (pp. A12 and A13). release H.8, “Assets and Liabilities of All As long as the funds remain in the special Commercial Banks in the United States,” SDR account of the Treasury at the Federal shows the consolidated condition statement Reserve Bank of New York, the correspond­ that is the basis for the one published on ing liability item is included with “All other,” under “Other” deposits. page A18 of the Bulletin. 2 In the tables on pp. A4 and A18, the “gold stock” consists of all gold against which the Federal Reserve "Under the procedures used—for SDR’s just as for Banks hold gold certificates (or certificate-account gold—the transactions are carried out through book debits) plus other Treasury gold exclusive of Exchange entries, rather than through physical issuance of cer­ Stabilization Fund holdings; this is the “Treasury gold tificates. stock” shown on p. A75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SPECIAL DRAWING RIGHTS 423 Beginning with the May issue, the month­ Article XXXII. The dollar is one of the cur­ ly G.15 release on the Interdistrict Settle­ rencies in the first of these two categories; ment Fund will show not only the end-of- currencies in this category are termed “inter­ month status of the SDR certificate account, convertible” currencies. A country whose both for each Federal Reserve Bank sepa­ currency is in this category must be prepared rately and for the System as a whole, but to provide, at a rate of exchange prescribed also “Withdrawals,” “Deposits,” and “Distri­ by the IMF (based on market rates for the butions” made during the month. “With­ U.S. dollar), any other “currency convert­ drawals” and “Deposits” will include, re­ ible in fact” in the same category, that is, any spectively, any redemptions and new other “interconvertible” currency—at the issuances of SDR certificates by the Treas­ option of the country using SDR’s—in ex­ ury (and will normally appear only on the change for balances in its currency the latter line for the Federal Reserve Bank of New country has obtained in transactions involv­ York). “Distributions” will show the dis­ ing SDR’s. Under these provisions the United tribution among Federal Reserve Banks, States, as a country whose currency is “inter­ made by the Board of Governors, of certifi­ convertible” in the sense indicated, may be cate issuances or redemptions during the called upon to supply another “interconvert­ month. ible” currency in exchange for dollars ob­ Another aspect of Federal Reserve opera­ tained by an SDR user, through IMF desig­ tions involving SDR’s relates to the provision nation, from either the United States or of currency against SDR’s in international another participating country.3 transactions. In transactions between partici­ There are three currencies which are pating countries, SDR’s may be used in two “interconvertible” under Section (b)(1) of ways: through bilateral agreement and Article XXXII: the U.S. dollar, the U.K. through designation by the IMF. It is ex­ pound sterling, and the French franc. While pected that the United States will use SDR’s thus far the United States has had to convert mainly via the first of these procedures, be­ only relatively small amounts of dollars into cause U.S. use of SDR’s (like U.S. use of “interconvertible” currencies in SDR trans­ monetary gold or other international reserve actions, there could in future be occasional assets) will normally be for the purpose of demands for conversions of more significant converting dollars held by particular foreign amounts into sterling or francs. Such re­ countries. quests should present no problems. Under Under the designation process—generally arrangements established between the Fed­ expected to be the method normally used by eral Reserve, and, respectively, the Bank of most other participating countries—a coun­ England and the Bank of France, a proce­ try wishing to use SDR’s informs the IMF of dure exists under which the Federal Reserve this fact. The IMF then designates countries may obtain, at the representative exchange to receive the SDR’s, and the amount each country is to receive. Under Section 4 of Article XXV of the Articles of Agreement, 3 As used here the word “interconvertible,” which does not appear in the Articles of Agreement them­ each country so designated is required to selves, has only the meaning implicit in it in the above provide, in exchange for the SDR’s it receives indication of the conditions that a country having an “interconvertible” currency must meet in connection as a result of designation, “currency con­ with SDR transactions. It has no direct relation to cur­ vertible in fact.” There are two different rency convertibility in its more familiar sense. A cur­ categories of “currency convertible in fact,” rency may be convertible for the purposes of Article VIII without being “interconvertible” in the sense indi­ as this term is defined in Section (b) of cated above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 FEDERAL RESERVE BULLETIN □ MAY 1970 rate prescribed by the Fund, sterling or ings of the United States and of the rest of francs needed to effect such conversions. the world. With this treatment, SDR alloca­ tions to the United States, including the FLOW OF FUNDS initial one on January 1 of this year, will be The flow of funds statistics shown in this excluded from tables on transactions, while Bulletin include on page A71.9 a special in flow of funds tables on assets and liabili­ form of the balance of payments statement ties outstanding they will appear as increases that integrates foreign financial transactions in U.S. assets not associated with trans­ with the United States with domestic data on actions. borrowing and lending. Most of these finan­ SDR certificates issued by the Exchange cial transactions are in credit instruments Stabilization Fund (ESF) to the Federal Re­ that represent liabilities of either the United serve will appear in the flow of funds tables States or the rest of the world, and each as a form of borrowing by the U.S. Govern­ change in U.S. net claims abroad is matched ment (p. A71.5), which includes ESF, from in the accounts by a change in foreign net the monetary authorities sector (p. A71.6), liabilities. Gold has been an exception to which includes the Federal Reserve. This this principle in that it is treated as an asset borrowing will appear in the tables together of holders—U.S. or foreign—for which no with the “Treasury currency” claim of the counterpart liability is recorded. SDR’s will monetary authorities sector shown on p. A70, appear in flow of funds tables on the same line 14. Special-account deposits at the Fed­ basis, as a U.S. asset not matched by a for­ eral Reserve arising from SDR certificate eign liability. Trading in existing SDR’s will transactions will appear as U.S. Government enter as offsetting changes in the asset hold­ deposits with the monetary authorities sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices, 1969 Since late 1964 the Federal Reserve System mands early in the year by reducing their has conducted quarterly surveys to obtain holdings of liquid assets—particularly U.S. information from large commercial banks Government securities, which they had ac­ concerning changes in their nonprice lend­ cumulated in large volume in the latter half ing policies and practices and their appraisal of 1968—and by sharply increasing their of current and anticipated demand for busi­ borrowings in the Euro-dollar market. But ness loans. The results of these surveys are banks also took steps to ration credit more published annually in the spring. Summary effectively, by increasing the rates charged statistics covering the four surveys in 1969 borrowers and by imposing tighter policies are included in this article. on loan terms, especially in the enforcement With gross national product expanding at of compensating or supporting balances. In a rapid pace early in 1969, associated credit the February survey, however, only about requirements were large. The principal stim­ one-half of the respondents reported that ulus to final demands came from the business they had tightened their policies on lending sector, where outlays for plant and equip­ to nonlocal customers, and only a little more ment rose substantially. Financing of these than three-fifths had done so with respect to outlays, as well as enlarged working capital new customers. needs, was reflected in part in increased de­ As the year progressed, the impact of tight mands for business loans at banks, as re­ monetary policy became more pervasive and ported by about three-fifths of the respond­ banks were prompted to adopt further meas­ ents in the February survey. ures that would limit the pressure on their In view of the inflationary character of resources. Demand for loans continued economic developments and of expectations strong throughout the spring, and nearly of further inflation, the Federal Reserve half of the respondents in the May survey moved to reinforce the shift toward mone­ anticipated a continuation of strong de­ tary restraint that had been initiated in late mands over the next quarter; at the same 1968. Consequently, credit became more costly and less of it was available. Because of time there was a deterioration in the volume sharp increases in interest rates on market of funds available for lending. Banks reacted instruments, large negotiable certificates of to these increasing pressures in a variety of deposit (CD’s) were no longer competitive ways. To raise funds for the extension of with alternative investments, and the volume loans at a time when attrition of time deposits of funds available to banks from these de­ was accelerating, banks further reduced their posits declined substantially from the peak liquidity and increased their borrowings of levels reached late in 1968. Euro-dollars. In addition, they sought to ob­ To a considerable extent, banks were able tain funds from nondeposit sources—for to adjust to the increased pressure on avail­ instance, through sales of commercial paper able funds and to meet expanding loan de­ by their subsidiaries or affiliates. 425 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 FEDERAL RESERVE BULLETIN □ MAY 1970 However, neither the current nor the pro­ more, banks indicated that they were screen­ spective supply of funds from all sources was ing loan applicants much more carefully; sufficient to mitigate the need for cumulative roughly two-thirds of the respondents in both tightening of lending terms and conditions surveys reported that the potential value of during the spring and summer. Hence, ac­ the applicant—as a depositor or as a source cording to the May and August surveys, in­ of collateral business—and the intended use terest charges to nonfinancial business cus­ of the loan were being increasingly consid­ tomers had been increased by roughly 80 to ered in reviewing loan applications. 90 per cent of the banks surveyed—prob­ Many banks also reported a reluctance to ably reflecting the March and June increases extend speculative loans, term loans, and in the prime rate. Rates charged finance mortgage loans, and from two-thirds to fourcompanies had also been raised. Further­ fifths of the banks in both surveys reported QUARTERLY SURVEY—FEBRUARY 1969 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1969, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 123 (100.0) 11 (8.9 60 (48.8) 48 (39.0) (3.3) Anticipated in next 3 months..................... 122 (100.0) 9 (7.4) 56 (45.9) 52 (42.6) (4.1) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged............................. 123 (100.0) 36 (29.3) 70 (56.9) 17 (13.8) Compensating or supporting balances. 123 (100.0) 21 (17.1) 58 (47.2) 44 (35.7) Standards of creditworthiness............... 122 (100.0) 12 (9.8) 28 (23.0) 82 (67.2) Maturity of term loans........................... 122 (100.0) 10 (8.2) 27 (22.1) 85 (69.7) Practice concerning review of credit lines or loan applications: Established customers............................ 123 (100.0) 2 (1.6) 38 (30.9) 83 (67.5) New customers........................................ 123 (100.0) 34 (27.6) 42 (34.1) 47 (38.3) Local service area customers................ 120 (100.0) 2 (1.7) 35 (29.2) 83 (69.1) Nonlocal service area customers.......... 121 (100.0) 32 (26.4) 28 (23.1) 61 (50.5) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.......................................... 123 (100.0) 29 (23.6) 44 (35.8) 49 (39.8) (.8) Intended use of the loan........................ 123 (100.0) 32 (26.0) 36 (29.3) 54 (43.9) (.8) Loans to independent finance companies:3 Terms and conditions: Interest rate charged............................... 122 (100.0) 19 (15.6) 46 (37.7) 57 (46.7) Compensating or supporting balances. 122 (100.0) 7 (5.7) 21 (17.2) 94 (77.1) Enforcement of balance requirements. 122 (100.0) 14 (11.5) 22 (18.0) 86 (70.5) Establishing new or larger credit lines. 122 (100.0) 38 (31.1) 29 (23.8) 52 (42.6) (2.5) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................. 123 (100.0) 11 (8.9) 51 (41.5) 59 (48.0) (1.6) Consumer instalment loans....................... 122 (100.0) 3 (2.5) 9 (7.4) 103 (84.4) (5.7) Single-family mortgage loans................... 120 (100.0) 12 (10.0) 28 (23.3) 77 (64.2) (2.5) Multifamily mortgage loans..................... 120 (100.0) 20 (16.7) 29 (24.2) 70 (58.3) (.8) All other mortgage loans........................... 120 (100.0) 17 (14.2) 34 (28.3) 69 (57.5) Participation loans with correspondent banks.......................................................... 123 (100.0) 7 (5.7) 19 (15.4) 94 (76.5) (2.4) Loans to brokers.......................................... 120 (100.0) 20 (16.7) 21 (17.5) 79 (65.8) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1969 427 that they had made their policies on lending ber survey reported that they had increased to new and nonlocal customers much firmer. their interest charges. Concerning most of Even in the relatively more profitable con­ the other aspects of lending policy covered sumer instalment lending area, monetary re­ by the survey, a substantial majority of straint was beginning to have an impact; banks indicated that their policies were nearly 3 out of every 10 respondents in the essentially unchanged. At the same time, August survey indicated less willingness to however, fewer banks reported a tendency make these loans. toward stronger loan demand and, in gen­ With pressures on available funds con­ eral, it appeared that the policies initiated tinuing through the end of 1969, banks earlier were considered sufficiently restric­ maintained their restrictive credit policies. tive to ration the available supply of bank About half of the respondents in the Novem­ credit. □ QUARTERLY SURVEY—MAY 1969 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1969, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier.............. 124 (100.0) 18 (14.5) 60 (48.4) 42 (33.9) (3.2) Anticipated in next 3 months................... 123 (100.0) 10 (8.1) 47 (38.2) 60 (48.8) (4.9) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged........................... 124 (100.0) 48 (38.7) 65 (52.4) 11 (8.9) Compensating or supporting balances. 124 (100.0) 36 (29.0) 58 (46.8) 30 (24.2) Standards of creditworthiness............. 124 (100.0) 18 (14.5) 35 (28.2) 71 (57.3 Maturity of term loans......................... 124 (100.0) 23 (18.5) 30 (24.2) 71 (57.3) Practice concerning review of credit lines or loan applications: Established customers.......................... 124 (100.0) 6 (4.8) 53 (42.7) 65 (52.5) New customers..................................... 122 (100.0) 53 (43.4) 45 (36.9) 24 (19.7) Local service area customers............... 123 (100.0) 7 (5.7) 51 (41.5) 65 (52.8) Nonlocal service area customers......... 123 (100.0) 52 (42.3) 35 (28.5) 36 (29.2) Factors relating to applicant:2 Value as depositor or source of collat­ eral business...................................... 123 (100.0) 40 (32.5) 43 (35.0) 40 (32.5) Intended use of the loan....................... 124 (100.0) 46 (37.1) 44 (35.5) 34 (27.4) Loans to independent finance companies:3 Terms and conditions: Interest rate charged.............................. 123 (100.0) 21 (17.1) 42 (34.1) 60 (48.8) Compensating or supporting balances., 123 (100.0) 14 (11.4) 22 (17.9) 87 (70.7) Enforcement of balance requirements.. 123 (100.0) 22 (17.9) 32 (26.0) 69 (56.1) Establishing new or larger credit lines.. 123 (100.0) 55 (44.7) 23 (18.7) 44 (35.8) (.8) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses......................... 124 (100.0) 29 (23.4) 52 (41.9) 43 (34.7) Consumer instalment loans..................... 123 (100.0) 3 (2.4) 22 (17.9) 96 (78.1) (1.6) Single-family mortgage loans.................. 122 (100.0) 21 (17.2) 36 (29.5) 64 (52.5) (.8) Multifamily mortgage loans.................... 121 (fOO.O) 27 (22.3) 44 (36.4) 50 (41.3) All other mortgage loans......................... 122 (100.0) 29 (23.8) 48 (39.3) 45 (36.9) Participation loans with correspondent banks..................................................... 123 (100.0) 11 (8.9) 37 (30.1) 75 (61.0) Loans to brokers...................................... 121 (100.0) 16 (13.2) 32 (26.4) 73 (60.4) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 FEDERAL RESERVE BULLETIN □ MAY 1970 QUARTERLY SURVEY—AUGUST 1969 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 15, 1969, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 124 (100.0) (5.6) 42 (33.9) 64 (51.6) 11 (8.9) Anticipated in next 3 months..................... 124 (100.0) (1.6) 24 (19.4) 79 (63.7) 19 (15.3) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 124 (100.0) 40 (32.3) 57 (46.0) 27 (21.7) Compensating or supporting balances. 123 (100.0) 36 (29.3) 48 (39.0) 39 (31.7) Standards of creditworthiness............... 123 (100.0) 19 (15.4) 31 (25.2) 73 (59.4) Maturity of term loans........................... 123 (100.0) 26 (21.1) 26 (21.1) 71 (57.8) Practice concerning review of credit lines or loan applications: Established customers............................ 124 (100.0) 19 (15.3) 45 (36.3) 60 (48.4) New customers........................................ 124 (100.0) 69 (55.6) 32 (25.8) 23 (18.6) Local service area customers................ 123 (100.0) 16 (13.0) 44 (35.8) 63 (51.2) Nonlocal service area customers.......... 122 (100.0) 53 (43.4) 31 (25.4) 38 (31.2) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.......................................... 123 (100.0) 39 (31.7) 41 (33.3) 43 (35.0) Intended use of the loan........................ 124 (100.0) 48 (38.7) 37 (29.8) 38 (31.5) Loans to independent finance companies:3 Terms and conditions: Interest rate charged............................... 123 (100.0) 30 (24.4) 29 (23.6) 64 (52.0) Compensating or supporting balances. 123 (100.0) 16 (13.0) 27 (22.0) 80 (65.0) Enforcement of balance requirements. 123 (100.0) 24 (19.5) 28 (22.8) 71 (57.7) Establishing new or larger credit lines. 121 (100.0) 55 (45.5) 20 (16.5) 46 (38.0) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 123 (100.0) 35 (28.5) 46 (37.4) 42 (34.1) Consumer instalment loans......................... 123 (100.0) 4 (3.3) 31 (25.2) 86 (69.9) (1.6) Single-family mortgage loans..................... 121 (100.0) 25 (20.7) 36 (29.8) 59 (48.7) (.8) Multifamily mortgage loans..................... 120 (100.0) 40 (33.3) 30 (25.0) 50 (41.7) All other mortgage loans........................... 120 (100.0) 37 (30.8) 38 (31.7) 45 (37.5) Participation loans with correspondent banks.......................................................... 124 (100.0) 17 (13.7) 44 (35.5) 62 (50.0) (.8) Loans to brokers.......................................... 123 (100.0) 33 (26.8) 40 (32.5) 50 (40.7) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1969 429 QUARTERLY SURVEY—NOVEMBER 1969 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1969, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 125 (100.0) (4.0) 37 (29.6) 76 (60.8) 7 (5.6) Anticipated in next 3 months..................... 123 (100.0) (.8) 26 (21.1) 80 (65.1) 16 (13.0) Much firmer Moderately Essentially Moderately Much Total policy firmer unchanged easier easier Loans to nonfinancial businesses: Terms and conditions: Interest rates charged............................. 125 (100.0) 13 (10.4) 49 (39.2) 63 (50.4) Compensating or supporting balances. 125 (100.0) 20 (16.0) 52 (41.6) 53 (42.4) Standards of creditworthiness............... 125 (100.0) 14 (11.2) 31 (24.8) 80 (64.0) Maturity of term loans........................... 125 (100.0) 17 (13.6) 28 (22.4) 79 (63.2) (.8) Practice concerning review of credit lines or loan applications: Established customers............................ 125 (100.0) 8 (6.4) 38 (30.4) 79 (63.2) New customers........................................ 125 (100.0) 47 (37.6) 30 (24.0) 47 (37.6) (.8) Local service area customers................ 125 (100.0) 8 (6.4) 32 (25.6) 85 (68.0) Nonlocal service area customers.......... 124 (100.0) 42 (33.9) 28 (22.6) 54 (43.5) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.......................................... 124 (100.0) 25 (20.2) 32 (25.8) 67 (54.0) Intended use of the loan........................ 125 (100.0) 25 (20.0) 24 (19.2) 76 (60.8) Loans to independent finance companies:3 Terms and conditions: Interest rate charged............................... 124 (100.0) 5 (4.0) 19 (15.3) 100 (80.7) Compensating or supporting balances. 124 (100.0) 9 (7.3) 24 (19.4) 91 (73.3) Enforcement of balance requirements. 124 (100.0) 15 (12.1) 28 (22.6) 81 (65.3) Establishing new or larger credit lines. 122 (100.0) 40 (32.8) 19 (15.6) 63 (51.6) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses........................... 125 (100.0) 24 (19.2) 37 63 (50.4) (.8) Consumer instalment loans....................... 124 (100.0) 4 (3.2) 28 90 (72.6) (1.6) Single-family mortgage loans................... 122 (100.0) 19 (15.6) 18 (14.8) 85 (69.6) Multifamily mortgage loans..................... 121 (100.0) 27 (22.3) 17 (14.0) 77 (63.7) All other mortgage loans........................... 123 (100.0) 27 (22.0) 26 (21.1) 69 (56.1) (.8) Participation loans with correspondent banks.......................................................... 124 (100.0) 10 (8.1) 30 (24.2) 83 (66.9) (.8) Loans to brokers.......................................... 122 (100.0) 14 (11.5) 30 (24.6) 78 (63.9) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be ^ companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statement to Congress Statement by Arthur F. Burns, Chairman, the United States with deposits of $1 billion Board of Governors of the Federal Reserve or more. Nine of them are subsidiaries of System, before the Committee on Banking registered bank holding companies—com­ and Currency, U.S. Senate, May 14, 1970. panies that own two or more banks. Of the other 42 billion-dollar banks, one has been owned by a holding company since 1927. The Board of Governors welcomes your de­ In 1965 another was acquired by a company cision to move ahead with hearings on legis­ whose nonbanking assets are considerably lation to extend the Bank Holding Company larger than those of the bank. Then in late Act of 1956 to cover one-bank holding com­ 1967, a third billion-dollar bank created a panies. We think that it is entirely possible corporation that in 1967 and 1968 acquired as well as desirable to complete such action ownership of the bank plus several nonbank this year, in view of the wide agreement that subsidiaries, much smaller in size, engaged exists on the basic principle underlying this in fiduciary, mortgage, insurance, real estate legislation. That basic principle is incorpo­ investment, and data processing businesses. rated in Section 4 of the 1956 Act, which In the last 3 months of 1968 five more fol­ provides that bank holding companies, with lowed suit. By the end of 1969 there were relatively minor exceptions, shall confine 15 more, so that out of the 51 billion-dollar themselves to the management and control banks, 9 were owned by registered bank of banks and related activities. holding companies, 19 were independent, The 1956 Act required companies that and 23 were owned by one-bank holding owned two or more banks to divest any non­ companies. Among the 23 were the 6 largest related businesses they then owned if they banks in the country. These 6 banks alone chose to keep their banks. The reason for have more deposits than all of the banks in this requirement, as set forth in your com­ the registered bank holding company sys­ mittee’s report on that legislation, was “to tems; indeed, they hold more than a fifth of remove the danger that a bank holding com­ the deposits in our entire banking system. pany might misuse or abuse the resources of Whatever the reasons for exempting onea bank it controls in order to gain an advan­ bank holding companies may have been in tage in the operation of the nonbanking ac­ 1956 or in 1966, the time is clearly at hand tivities it controls.” when Congress must decide whether the In 1956 and again in 1966, your com­ rules against mixing banking and other mittee decided not to apply this principle to businesses in a holding company system companies that own only one bank. In should apply to one-bank holding com­ scheduling the present hearings you have panies or should be abandoned. It is dis­ recognized, however, the need to reconsider criminatory to apply these rules solely to the this decision in the light of the new wave of registered bank holding companies, which one-bank holding companies formed in the have fewer banks and a much smaller share past 2 years. of deposits than the exempt companies. Leading this movement are the largest As Chairman Martin testified last year banks in the country. There are 51 banks in before the House Committee on Banking 430 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

and Currency,1 complete enforcement of were engaged on that date. The date of June these rules is needed to guard against undue 30, 1968, would differentiate between the concentration of economic power. Let me older, and generally smaller, companies and quote from his testimony on this point: the newer companies formed by the coun­ try’s largest banks. Most of the nonbank If a holding company combines a bank with a typical business firm, there is a strong possibility that the subsidiaries of the latter companies appear bank’s credit will be more readily available to the to be bank-related, and virtually all of them customers of the affiliated business than to customers have been established after June 30, 1968. of other businesses not so affiliated. Since credit has Although the problems posed by divesti­ become increasingly essential to merchandising, the ture are difficult, they will get worse if legis­ business firm that can offer an assured line of credit lation is delayed. Most one-bank holding to finance its sales has a very real competitive ad­ vantage over one that cannot. In addition to favoring companies seem to be refraining from ac­ the business firm’s customers, the bank might deny quiring unrelated businesses, pending an credit to competing firms or grant credit to other early decision by the Congress on this legis­ borrowers only on condition that they agree to do lation. But if this session should close with­ business with the affiliated firm. This is why... if we out action, it could easily be interpreted as allow the line between banking and commerce to be indicating a decision by the Congress to pre­ erased, we run the risk of cartelizing our economy. ... Just as we have seen the country’s largest banks serve the exemption for one-bank holding joining the new wave of one-bank holding com­ companies, thereby leading to expansion by panies, we could later see the country’s business such companies into unrelated fields. Such a firms clustering about banks in holding company development would make the job of un­ systems in the belief that such an affiliation would be scrambling all the harder when final action advantageous, or perhaps even necessary to their on the legislation comes, as I believe it must. survival. To forestall expansion that will be increas­ If this committee agrees that one-bank ingly painful to reverse, we need a law this holding companies should be covered by year—as good a law as can be devised at legislation, you immediately face the ques­ this time. It will always be possible to make tion whether to require those that have un­ revisions later, if this proves necessary in related businesses to divest their banks or their nonbank interests in compliance with the light of experience, or advisable in the Section 4, which provides that such divesti­ light of new insights such as may be ex­ ture shall be completed within 2 years unless pected from the studies of the Presidential the Board of Governors extends the period Commission on Financial Structure and up to three additional years. Regulation. The Board recognizes that divestiture Enactment of a bill that simply covers poses questions of equity to the companies one-bank holding companies, with whatever involved, as well as possible adverse effects grandfather clause you decide is appropri­ on communities where forced sales of small ate, would meet the most pressing needs of banks might result. A majority of the Board the moment. At the same time it would be recommends, therefore, that holding com­ desirable to make several changes in the pro­ panies covered under the Act by this legisla­ visions of Section 4 relating to the fields of tion be allowed to retain subsidiaries ac­ business that bank holding companies quired before June 30, 1968, provided they should be allowed to enter. Before suggest­ engage only in those activities in which they ing amendments, I think it would be helpful to review the present law and how the Board 1 For complete statement see Federal Reserve Bulle­ has interpreted it. tin for April 1969, pp. 331-38. 431 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

432 FEDERAL RESERVE BULLETIN □ MAY 1970 As now written, Section 4 of the Act “all the activities of which are ... of a fi­ prohibits bank holding companies from en­ nancial, fiduciary, or insurance nature” if gaging in nonbanking activities or owning the Board determines that these activities are voting stock of nonbanking organizations, “so closely related to the business of bank­ with a number of exemptions. The most im­ ing or of managing or controlling banks as portant exemptions are in Section 4(c)(1) to be a proper incident thereto” and thus in (C), Section 4(c)(5), and Section 4(c) harmony with the purposes of the Act. Vir­ (8 ). tually all of the subsidiaries established un­ Under Section 4(c)(1)(C) a bank hold­ der Section 4(c)(8) have been insurance ing company may acquire interests in a com­ companies or agencies. Where an insurance pany engaged solely in “furnishing services agency is involved, the Board has inter­ to or performing services for such bank preted the provision as requiring a “direct holding company or its banking subsidi­ and significant connection” between the aries.” Your committee’s report on the 1956 activities of the agency and those of the sub­ Act indicated that such services would in­ sidiary banks. The connection may be estab­ clude “auditing, appraising, investment lished, for example, by the fact that the in­ counseling ... and many others.” The Board surance agency will be housed in bank of­ has interpreted the exemption to include a fices and use bank personnel, or that its in­ mortgage company that acts merely as an come will be derived from bank-related adjunct to facilitate operations of one or transactions or insurance sold to bank cus­ more of the subsidiary banks. The Board has tomers. Insurance company subsidiaries also interpreted the exemption to include an (underwriters, as contrasted with agents) equipment leasing company operated es­ have been permitted where all of the insur­ sentially as a conduit for extensions of credit ance is written in connection with bank by subsidiary banks to the lessees of the transactions. equipment. Thus, in its interpretations of the 1956 Under Section 4(c)(5) a bank holding Act, the Board has recognized that combin­ company may acquire “shares which are of ing banks with functionally related busi­ the kinds and amounts eligible for invest­ nesses in a holding company system may ment by national banking associations.” lead to economies in production, distribu­ Various statutory provisions explicitly au­ tion, sales, research, and finance. Economies thorize national banks to buy stock of par­ ticular organizations, such as safe deposit of production can be achieved where there is a similarity of operations, such as servic­ companies, bank premises subsidiaries, ing checking accounts and processing pay­ small business investment companies, and so on. The Board has ruled that a member rolls. Consumers can benefit from the con­ bank may establish a wholly owned opera­ venience of being able to buy insurance on tions subsidiary—that is, an organization a new car at the time they arrange for its designed to serve, in effect, as a separately financing—assuming, of course, that the ar­ incorporated department of the bank. This rangement is entirely voluntary. A research ruling automatically expanded the scope of staff can be too expensive for one bank to investments permissible for bank holding maintain but pay for itself when the ex­ companies under Section 4(c) (5). penses are shared with other subsidiaries in Section 4(c)(8) permits a bank holding a holding company system. A holding com­ company to acquire shares of a company pany also may be able to obtain capital Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 433 funds more easily and less expensively than matic approval would be granted only where any of its smaller components. the applicant demonstrated to the Board’s By weighing the prospects of realizing satisfaction that approval would serve the such benefits against the risks of undesirable public interest. consequences, a judgment may be fooned Guidelines governing such approval about the kinds of services bank holding would be established by the Board, taking company subsidiaries should be authorized into account the competitive and other fac­ to provide. In the Board’s judgment, author­ tors already specified in the Act as to acqui­ ized subsidiaries might well include those sitions of banks. Thus, an applicant propos­ engaged in lending funds on their own ac­ ing an acquisition involving a relatively count or for the account of others; acting large amount of nonbank assets would or­ as investment adviser; operating a “no-load” dinarily bear a greater burden of proving mutual fund; leasing equipment where the that the acquisition is not contrary to the lease is really a form of security for financ­ public interest. Also, while approval would ing; performing insurance functions in con­ be required whether the expansion is to be nection with services offered by other sub­ achieved by establishing a new company or sidiaries; providing bookkeeping or data- by acquiring an existing one, de novo entry processing services; originating, servicing, would be favored because a company newly and selling mortgage loans; acting as travel entering a market must, of course, face the agent or issuing travelers checks; and making competition of those already in it. equity investments in community rehabilita­ Under the present provisions of Section tion and development corporations engaged 4(c), particularly Sections 4(c)(1)(C) in providing better housing and employ­ and 4(c) (5), bank holding companies may ment opportunities for people of low or acquire or establish subsidiaries to engage moderate incomes. The list of permissible in most of the activities I have mentioned. activities should change as times change; But some modifications in Section 4(c)(8) we are therefore not recommending that would make it more useful in dealing with Congress include a specific list in the statute. activities not covered by Sections 4(c)(1) Rather, we believe the Board should be au­ (C) and 4(c)(5). Section 4(c)(8) now re­ thorized to specify permissible activities by quires that a formal hearing be held on each regulation, after providing interested parties application thereunder, even in the absence an opportunity for a hearing. of any interest or testimony by anyone other Once a particular activity has been deter­ than the applicant. This is a time-consum­ mined to be functionally related to banking, ing and expensive procedure, which should and so permissible for holding companies be limited to instances where a hearing is generally, administrative approval should be requested by an interested party. It would required before a holding company could be helpful, too, to revise the standards set establish a subsidiary to engage in the activ­ forth in Section 4(c)(8) to incorporate the ity. Approvals could be granted automati­ concepts I have outlined. We have in mind cally under a notification procedure where a provision permitting any activity that the the proposal is within guidelines designed to Board determines, after opportunity for a identify situations in which entry would be hearing, is “functionally related to banking procompetitive. Application for establish­ in such a way that its performance by an ment of subsidiaries under circumstances affiliate of a bank holding company can that do not meet the guidelines for auto­ reasonably be expected to produce benefits Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

434 FEDERAL RESERVE BULLETIN □ MAY 1970 to the public, such-as greater convenience, stagnant banking system and, perhaps also, increased competition, or gains in efficiency, a consequent drag on our economy. that outweigh possible adverse effects, such Turning to the question of administration as undue concentration of resources, de­ of the Act, we believe that it would be most creased competition, conflicts of interest, or effective to place this responsibility in one unsound banking practices.” This standard agency, and the Board has the advantage of is in harmony with the standard incorpo­ having had experience in this field. Although rated in S. 1664; it simply spells out to a the Board indicated last year that dispersal greater degree the process by which we be­ of administrative authority would be accept­ lieve “related” activities should be identified. able if necessary to get a bill, subsequent The Board supports in principle the other developments seem to indicate that dis­ revisions in Section 4(c)(8) incorporated persal would not in fact enhance the pros­ in S. 1664, except for those provisions dis­ pects for action in this Congress. persing administrative authority among the Let me comment briefly now on a few three banking agencies, to which I shall remaining issues. return in a moment. The Board favors broadening the tests of A revision of Section 4 along the lines I control, as all of the bills before you would have suggested would avoid rigidities such do, to cover situations where control is exer­ as those incorporated in the House-passed cised in fact through ownership of less than bill. We believe that bill goes too far in pro­ 25 per cent of the voting stock. tecting insurance agents, travel agents, bookkeepers, mutual funds, and others from In view of the recent use of the partner­ competition. Greater freedom of entry into ship form to bring several banks in Michigan these fields by bank holding companies, sub­ and other States under common control, the ject to safeguards such as I have outlined, definition of “company” should be extended would promote the fair competition in the to cover partnerships, as all of the bills be­ provision of services that the public has a fore you would do. right to expect. The House-passed bill, as we understand The Board opposes the restrictive ap­ it, would require a bank that held in its trust proach of the House-passed bill to a defini­ department a controlling interest in the stock tion of banking. Aside from the uncertain­ of another bank to register and file reports ties and competitive inequities it would in­ under the Act; but such a bank could con­ volve, it seems to turn the principles of the tinue to acquire stocks of other banks in a 1956 Act upside down. In 1956 Congress fiduciary capacity without Board approval, decided that bank holding companies should in view of the exemption in Section 3 of the be confined to activities closely related to 1956 Act, which would be retained. The banking. But the House bill seems to pro­ Board believes that something beyond re­ vide that certain services, including some porting is needed to assure that acquisitions heretofore considered banking services, are through trust accounts are not used to cir­ not to be offered by holding company sub­ cumvent the purpose of the Act. Outright sidiaries, and therefore should also not be repeal of the exemption in Section 3, how­ offered by banks. If banks and bank holding ever, would interfere drastically with the companies are to be prohibited from offer­ ability of banks to offer fiduciary services. ing service simply because it might compete We recommend, instead, that the exemption with a nonbank business, we can expect a in Section 3 be limited, as to bank stock, to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENT TO CONGRESS 435 cases where the trustee bank obtains voting against our banks operating abroad, to the instructions from the beneficiary. detriment of the foreign commerce of the The House-passed bill would repeal the United States. The provisions of the Houseexemption for labor, agricultural, and horti­ passed bill authorizing the Board to grant cultural organizations in Section 4(c) of the exemptions in this area would be most useful Act; the Board has repeatedly recommended in dealing with these problems. that this be done. In summary, the Board recommends that We also recommend that the exemptions your committee report favorably a bill that in Section 4(c) (5) and Section 4(c) (9) be would— amended, as provided in S. 1664, so as to First, amend the definition of “bank hold­ preclude the possibility that a bank might ing company” to include companies that establish a holding company to acquire a control only one bank, as provided in all of foreign bank without obtaining Board ap­ the bills before you; proval, which would be required under Sec­ Second, include a grandfather clause tion 25 of the Federal Reserve Act if the dated June 30, 1968, as provided in S. bank made the acquisition directly. 1664; Coverage of one-bank holding companies Third, revise the standards in Section 4 requires a new look at how the Act should (c) regarding permissible activities, along apply to foreign banks and bank holding the lines mentioned in this.statement; companies. Several banks chartered in New Fourth, make more limited changes, York and California are subsidiaries of for­ chiefly to broaden the test of control, cover eign one-bank holding companies. A num­ partnerships, and permit foreign bank hold­ ber of foreign-chartered banks have offices ing companies to retain foreign nonbanking of one kind or another in this country. interests. Taken literally, the definition of “bank” in This is the outline of legislation the Board Section 2(c) of the Act, together with Sec­ would like to see. In closing let me repeat tion 2(h), would seem to apply the divesti­ that it is my hope—as well as the hope of ture requirements of Section 4 of the Act in the other members of the Board of Gov­ a number of these situations. The Board ernors—that Congress will pass a one-bank sees no useful purpose in this. We think the holding company bill this year. Action is objectives of the Act can be accomplished needed now, before large banks make sub­ without covering foreign-chartered banks stantial acquisitions in unrelated fields and without covering domestically chartered through their one-bank holding companies. banks that do no business in the United Action is needed now, while it is still possible States except as an incident to their foreign to preserve a reasonable distinction between operations. Moreover, we believe bank hold­ banking and industry without undue hardship ing companies that are principally engaged either to the companies themselves or to the in banking abroad should be allowed to re­ economy and the Nation. We should not let tain interests in foreign-chartered nonbank­ the basic purpose of this legislation stray ing companies that are also principally en­ from our minds. Nor should we permit de­ gaged in business outside the United States. tails or technicalities to distort our focus on We do not believe Congress intended the this basic and most important issue. The Act to be applied in such a way as to impose Board stands ready to cooperate with the our ideas of banking upon other countries. committee in any way you call upon us in To do so might invite foreign retaliation your consideration of this legislation. □ 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 Com­ mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B u lletin . The record for each meeting includes the votes on the policy deci­ sions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial condi­ tions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions for the meetings held during 1967, 1968, and 1969 were published in the beginning with the July 1967 B u lletin issue and were subsequently published in the Board’s Annual Reports for 1967, 1968, and 1969. The record for the first meeting held in 1970 was published in the for April, pages 333-40. The record for the meeting held on B u lletin February 10, 1970, follows: 436 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEETING HELD ON FEBRUARY 10, 1970 Authority to effect transactions in System Account. According to information reviewed at this meeting, over-all economic activity apparently was weakening further in early 1970 but prices and costs were continuing to rise rapidly. Staff projections suggested that real GNP, which had leveled off in the fourth quarter of 1969, would decline slightly in the first half of 1970 but would begin growing again in the second half. Some moderation in the rate of price advance was expected over the course of the year. Industrial production was tentatively estimated to have declined in January for the sixth consecutive month. There were various indica­ tions that the demand for labor was continuing to ease: Total nonfarm employment was about unchanged in January at the level reached 3 months earlier, the average length of the workweek in manufacturing had declined sharply, and the over-all unemployment rate had risen to 3.9 per cent after 2 months at the (revised) level of 3.5 per cent. Retail sales estimates for November and December had been revised down­ ward to levels below October, and weekly sales data for January sug­ gested only a slight advance in that month. Private housing starts de­ clined again in December, reaching their lowest level since June 1967, and the downtrend had apparently continued in January. Average wholesale prices continued to rise at a rapid pace from mid- December to mid-January; the increase was exceptionally sharp for farm products and foods. The consumer price index again advanced rapidly in December. Federal budget estimates recently released by the administration showed small surpluses in both the 1970 and the 1971 fiscal years, despite the reduction of the income tax surcharge from 10 to 5 per cent on January 1, 1970, and its scheduled expiration on July 1. The budget document ifhplied tight controls over expenditures; it suggested that Federal purchases of goods and services would decline over the course of the 1970 calendar year, with substantial cutbacks in defense expenditures. However, a sharp rise in transfer payments was in pros­ pect for the second quarter, reflecting an increase in social security benefit payments—and a retroactive payment for the period since January 1—under legislation that had been enacted earlier. 437 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

438 FEDERAL RESERVE BULLETIN □ MAY 1970 The staff’s GNP projections for the first half of 1970 suggested fur­ ther reductions in business inventory accumulation and in residential construction outlays as well as in defense spending. Only moderate increases in consumer spending were projected—despite the reduction in the surtax in the first quarter and the anticipated increase in social security benefit payments in the second—because it appeared likely that smaller gains in employment and shorter workweeks would tend to slow the growth in personal income and that the personal saving rate would rise somewhat. It was expected, however, that business capi­ tal spending would increase substantially further in the first half. The projections of resumed growth in real GNP in the second half of 1970 were based in part on expectations of a recovery in residential construction outlays, some step-up in spending by State and local governments, an end to the reduction in business inventory accumula­ tion, and the elimination of the income tax surcharge at midyear. How­ ever, the rate of increase in real GNP was expected to be held to mod­ erate proportions by continuing declines in defense spending and by a leveling off in business capital outlays. The surplus in U.S. merchandise trade rose in December, as imports declined more than exports. For the fourth quarter as a whole the trade surplus was somewhat larger than in the preceding quarter. The over-all payments balance reverted to deficit in January on both the liquidity and official settlements bases, as a result of cessation (and partial reversal) of the exceptionally large year-end inflow of funds that had produced large surpluses in December and in the fourth quarter as a whole. In foreign exchange markets sterling strengthened significantly after mid-January. The Italian lira was under considerable selling pressure throughout the month. Euro-dollar rates declined more than seasonally in January, in part because of reduced demands for Euro-dollars by U.S. banks. On January 28 the Treasury announced that, in exchange for bonds maturing on February 15 and March 15, it would offer three new notes having, respectively, maturities of 18 months, 3V2 years, and 7 years, and yields of SV4, SVs, and 8 per cent. The refunding was favor­ ably received by the market, and according to preliminary estimates, only about 15 per cent of the $5.6 billion of maturing securities held by the public were turned in for cash. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 439 Interest rates on new corporate and municipal bonds and on out­ standing Treasury securities of all maturities had fluctuated over a relatively wide range since the January 15 meeting of the Committee. The rate declines that had been under way earlier in the month con­ tinued for a time after mid-January, against the background of addi­ tional reports indicating weakness in the economy. Subsequently, how­ ever, yields turned up under the pressure of a mounting volume of new corporate and municipal issues and continued large-scale borrowing by Federal agencies. Then, around the month-end, yields moved sharply downward as market participants interpreted statements by various offi­ cials as suggesting that monetary restraint would be eased soon. On the day before this meeting the market rate on 3-month Treasury bills was 7.30 per cent, about 55 basis points below its mid-January level. At both commercial banks and nonbank thrift institutions, outflows of savings funds—which had been unusually heavy following year-end interest and dividend crediting—continued at a significant rate through­ out January. On January 20 the Board of Governors of the Federal Reserve System announced moderate increases in maximum interest rates payable by member banks on time and savings deposits.1 At about the same time the Federal Deposit Insurance Corporation and the Federal Home Loan Bank Board announced increases in maximum rates payable by the banks and savings and loan associations over which they have regulatory authority. Thus far these actions had had little observable effect on flows of time and savings funds. 1By amendment to Regulation Q effective Jan. 21, 1970, the Board of Gov­ ernors increased from 4 to AVi per cent the maximum rate payable on passbook savings and on 30- to 89-day “consumer-type” time deposits—those of less than $100,000—of multiple maturity. Maximum rates were increased from 5 per cent to 5V2 and 53A per cent, respectively, for 1-year and 2-year single-maturity consumer-type deposits; for other consumer-type deposits (that is, multiple matu­ rities of 90 days and over and single maturities of less than 1 year) the previous maximum of 5 per cent was retained. In addition, the following changes were made in maximum rates payable on time deposits of $100,000 or more: New Previous Maturity maximum maximum (per cent) 30-59 days . 6V4 SV2 60-89 days 6V2 53A 90-179 days 63A 6 180 days to 1 year 1 6V4 1 year or more 6V4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

440 FEDERAL RESERVE BULLETIN □ MAY 1970 Private demand deposits and the money stock declined over the course of January, following a sharp and sudden rise at the year-end, and by early February they were below their average December levels. However, the erosion of the year-end bulge in these series was slower than expected, and from December to January on the average the money stock increased at an annual rate of 9 per cent. Meanwhile, total time and savings deposits contracted sharply—at an estimated annual rate of 12.5 per cent—because of the large outflow of consumer-type deposits. Reflecting diverse movements among deposit categories, the bank credit proxy—daily-average member bank deposits—declined from December to January at an annual rate estimated at about 3.5 per cent. A sharp increase in funds obtained through sales of commercial paper by bank affiliates was nearly offset by a decline in the average level of Euro-dollar borrowings through foreign branches. After taking into account the net change in funds from these “nondeposit” sources, the adjusted bank credit proxy was estimated to have declined at an annual rate of about 3 per cent from December to January. In the fourth quar­ ter of 1969 the money stock and the adjusted proxy series had increased at annual rates of about 1.5 and 2 per cent, respectively. Along with the amendment to Regulation Q, on January 20 the Board of Governors published for comment a proposed rule applying reserve requirements to certain types of bank-related commercial paper. It was noted that the proposed action was of a type explicitly authorized by legislation enacted December 23, 1969. Earlier—on October 29, 1969—the Board had announced that it was considering applying in­ terest rate ceilings to certain bank-related commercial paper, but action on that proposal subsequently was withheld while consideration was being given to the application of reserve requirements to the same type of paper. System open market operations since the preceding meeting of the Committee had been directed at maintaining firm conditions in the money market, with operations subject to modification if it appeared that die Committee’s objective of modest growth in the money stock and bank credit over the first quarter was not being achieved. In fact, not only had the average levels of two aggregates moved in opposite directions from December to January—the money stock rising and the bank credit proxy declining—but also, during the period since the previous meeting, the projections for the first quarter had been revised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 441 upward for the money stock and downward for the proxy series. In the 4 weeks ending February 4, the Federal funds rate averaged slightly more than 9 per cent and member bank borrowings about $1 billion, both relatively close to their averages in the preceding 4 weeks. Average net borrowed reserves increased somewhat as excess reserves declined from the seasonal high they had reached at the year-end. The latest staff projections suggested that, if prevailing money market conditions were maintained, the average level of the money stock would decline from January to February and would rise by a roughly equal amount from February to March; and that over the first quarter as a whole the money stock would expand at an annual rate of 3 to 4 per cent. The adjusted bank credit proxy, on the other hand, was projected to decline over the quarter at an annual rate of 2 to 4 per cent. This pro­ jection reflected an expectation that time and savings deposits—particu­ larly consumer-type deposits—would continue to contract for a time, although there was some prospect that the decline would end in late February or early March as the quarterly interest-crediting period approached. It also seemed possible that by March large-denomination CD’s—particularly those of longer maturity—might become at least marginally competitive with other market securities. An alternative set of projections suggested that the money stock would grow slightly more rapidly over the first quarter—at an annual rate of 4 to 5 per cent—if money market conditions were eased some­ what at present. It was anticipated that with such a change time and savings deposits would be stronger than otherwise in March; and that the adjusted bank credit proxy might advance sufficientiy in that month to result in no net decline, or perhaps a slight rise, over the first quarter as a whole. It was noted that any easing of money market conditions would be expected to have a greater stimulative effect on bank credit in the second quarter than in the first. The Committee concluded that, in light of the latest economic devel­ opments and the current business outlook, it was appropriate to move gradually toward somewhat less restraint at this time. In particular, the Committee decided that money market conditions should be shaded in the direction of less firmness, beginning immediately, with a view to encouraging moderate growth in money and bank credit over the months ahead. It was agreed that the shift toward less firm money market condi­ tions should be implemented cautiously, with close attention to succes­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

442 FEDERAL RESERVE BULLETIN □ MAY 1970 sive estimates of growth rates in the monetary and credit aggregates; and that operations should be modified promptly if those aggregates ap­ peared to be deviating significantly from a pattern of moderate growth. Some members expressed the view that the longer any relaxation of prevailing money market firmness was postponed the greater the likeli­ hood that developments in the economy would necessitate an unduly large and abrupt move toward monetary ease later on. At the same time, some members noted that caution was needed to avoid creating an exaggerated impression of the amount of relaxation contemplated, since widespread misunderstanding on that score could stimulate a new surge of inflationary expectations. It was also agreed that in the conduct of open market operations account should be taken of the current Treasury refunding and of any regulatory action by the Board of Governors with respect to bankrelated commercial paper. The following current economic policy direc­ tive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real eco­ nomic activity, which leveled off in the fourth quarter of 1969, may be weakening further in early 1970. Prices and costs, however, are continuing to rise at a rapid pace. Long-term market interest rates recently have fluctuated under the competing influences of heavy de­ mands for funds and shifts in investor attitudes regarding the outlook for monetary policy. Bank credit declined in January but the money supply increased substantially on average; both had risen slightly in the fourth quarter. Flows of time and savings funds at banks and non­ bank thrift institutions have remained generally weak since year-end, and they apparently have been affected little thus far by the recent increases in maximum rates payable for such funds. The U.S. foreign trade balance improved somewhat in December, as imports fell off. The over-all balance of payments has been in substantial deficit in recent weeks. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the orderly reduction of inflationary pressures, with a view to encouraging sustainable economic growth and attaining rea­ sonable equilibrium in the country’s balance of payments. To implement this policy, while taking account of the current Treasury refunding, possible bank regulatory changes and the Com­ mittee’s desire to see moderate growth in money and bank credit over the months ahead, System open market operations until the next meet­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 443 ing of the Committee shall be conducted with a view to moving gradually toward somewhat less firm conditions in the money market; provided, however, that operations shall be modified promptly to resist any tendency for money and bank credit to deviate significantly from a moderate growth pattern. Votes for this action: Messrs. Bums, Bopp, Clay, Daane, Maisel, Mitchell, Robertson, Scanlon, and Sherrill. Votes against this action: Messrs. Hayes, Brimmer, and Coldwell. The members who dissented from the policy directive did so pri­ marily because they felt that any overt move toward less firm money market conditions was premature at this time and could strengthen market expectations of substantial easing. While recognizing some areas of weakness in the economy, they were impressed by the strength of inflationary expectations, the continuing increases in prices and wages, business plans for a large volume* of capital spending, and the prospectively large balance of payments deficit. They were also concerned about the prospects for adequate fiscal restraint, even though the budget called for a small surplus. They agreed with the majority of the Committee that some growth in the monetary and credit aggregates was called for, but in their view this objective could have been covered adequately by a directive similar to the one the Committee had adopted at its January meeting. Thus, they preferred not to relax restraint at this time because of the risk of encouraging resurgent growth in over-all demand before* inflationary pressures and expectations had been adequately dampened. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions NEGOTIABILITY OF PAPER SUPPLEMENT TO REGULATION G The Board of Governors, effective April 16, Effective May 6, 1970, section 207.5(a) and 1970, amended Regulation A, “Advances and Dis­ (b) (the Supplement to Regulation G) is amended counts by Federal Reserve Banks”, so as to elimi­ to read as follows: nate the regulatory requirement that paper offered by member banks to the Federal Reserve Banks SECTION 207.5—SUPPLEMENT for discount or as collateral for advances under section 13 of the Federal Reserve Act must in all (a) Maximum loan value of margin securities. cases be negotiable. The amendments, which are For the purpose of § 207.1, the maximum loan essentially technical in nature and reflect no change value of any margin security, except convertible in the Federal Reserve System’s general credit and securities subject to §207.1 (d), shall be 35 per cent monetary policies, are incorporated into Regulation of its current market value, as determined by any A as follows: reasonable method. (b) Maximum loan value of convertible debt AMENDMENT TO REGULATION A securities subject to § 207.1(d). For the purpose of § 207.1, the maximum loan value of any security against which credit is extended pursuant to Effective April 16, 1970, Part 201 is amended § 207.1(d) shall be 50 per cent of its current mar­ by deleting the word “negotiable” where it occurs ket value, as determined by any reasonable method. in sections 201.3(a)(1), 201.3(b), 201.3(d), and 201.3(e); by deleting subparagraph (2) of section * He * * * 201.3(i); and by deleting “(1)” immediately after the catch line in section 201.3(i). SUPPLEMENT TO REGULATION T Effective May 6, 1970, section 220.8(a) (1), (c), CREDIT IN STOCK MARKET TRANSACTIONS and (d) (the Supplement to Regulation T) is amended to read as follows: MAXIMUM LOAN VALUE OF STOCKS AND CONVERTIBLE BONDS SECTION 220.8—SUPPLEMENT The Board of Governors amended the Supple­ ments to Regulation G, “Securities Credit by Per­ (a) Maximum loan value for general accounts. sons Other than Banks, Brokers, or Dealers”; Reg­ The maximum loan value of securities in a general ulation T, “Credit by Brokers and Dealers”; and account subject to § 220.3 shall be: Regulation U, “Credit by Banks for the Purpose (1) of a registered non-equity security held in of Purchasing or Carrying Margin Stocks”, effec­ the account on March 11, 1968, and continuously tive May 6, 1970. The amendments lowered the thereafter, and of a margin equity security (except as provided in § 220.3(c) and paragraphs (b) and margin requirement from 80 to 65 per cent for (c) of this section), 35 per cent of the current credit extended by brokers, dealers, banks, and market value of such securities. other lenders to finance purchase of stocks and from 60 to 50 per cent for credit extended by such * * $ * * persons to finance purchase of convertible bonds. No change was made in the 70 per cent retention re­ (c) Maximum loan value for special con­ quirement applicable to undermargined accounts. vertible debt security account. The maximum loan The text of the amendments to the Supplements value of a margin security eligible for a special reads as follows: convertible security account pursuant to § 220.4(j) 444 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

shall be 50 per cent of the current market value of ties exchange may effect and finance for any cus­ the security. tomer bona fide arbitrage transactions in securities. (d) Margin required for short sales. The For the purpose of this paragraph, the term “arbi­ amount to be included in the adjusted debit balance trage” means (1) a purchase or sale of a security of a general account, pursuant to § 220.3(d)(3), in one market together with an offsetting sale or as margin required for short sales of securities purchase of the same security in a different market (other than exempted securities) shall be 65 por at as nearly the same time as practicable, for the cent of the current market value of each security. purpose of taking advantage of a difference in prices in the two markets, or (2) a purchase of a * * * * * security which is, without restriction other than the payment of money, exchangeable or con­ SUPPLEMENT TO REGULATION U vertible within 90 calendar days following the date of its purchase into a second security together Effective May 6, 1970, section 221.4(a) and with an offsetting sale at or about the same time (b) (the Supplement to Regulation U) is amended of such second security for the purpose of taking to read as follows: advantage of a disparity in the prices of the two securities, except that when the security purchased SECTION 221.4—SUPPLEMENT is solely a due bill for, or other evidence of the right to receive, only the security that is sold, and (a) Maximum loan value of stocks. For the the security that is sold is trading as a when-issued purpose of § 221.1, the maximum loan value of security, such period shall be 180 calendar days. any stock, whether or not registered on a national securities exchange, shall be 35 per cent of its current market value, as determined by any rea­ AMENDMENT TO REGULATION U sonable method. (b) Maximum loan value of convertible debt Effective May 1, 1970, paragraph (j) of sec­ securities subject to § 221.3(t). For the purpose tion 221.2 is amended to read as follows: of §221.3 (t), the maximum loan value of any security against which credit is extended pursuant to § 221.3 (t) shall be 50 per cent of its current SECTION 221.2—EXCEPTIONS TO market value, as determined by any reasonable GENERAL RULE method. * * * * (j) Any credit extended to a member of a na­ tional securities exchange for the purpose of financ­ ARBITRAGE CREDIT ing his or his customers’ bona fide arbitrage trans­ actions in securities. For the purposes of this para­ The Board of Governors amended Regulations graph, the term “arbitrage” means (1) a purchase T and U, effective May 1, 1970, so as to add an or sale of a security in one market together with exception to the regulations to permit arbitrage an offsetting sale or purchase of the same security transactions without regard to margin requirements in a different market at as nearly the same time as up to 180 days in certain circumstances. The text of practicable, for the purpose of taking advantage the amendments reads as follows: of a difference in prices in the two markets, or (2) a purchase of a security which is, without restric­ AMENDMENT TO REGULATION T tion other than the payment of money, exchange­ able or convertible within 90 calendar days follow­ Effective May 1, 1970, paragraph (d) of section ing the date of its purchase into a second security 220.4 is amended to read as follows: together with an offsetting sale at or about the same time of such second security, for the purpose SECTION 220.4—SPECIAL ACCOUNTS of taking advantage of a disparity in the prices of the two securities, except that when the security * * * * * purchased is solely a due bill for, or other evi­ (d) Special arbitrage account. In a special dence of the right to receive, only the security that arbitrage account, a member of a national securi­ is sold, and the security that is sold is trading as a 445 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

446 FEDERAL RESERVE BULLETIN □ MAY 1970 when-issued security, such period shall be 180 (i) the offer or sale of any security or securities calendar days; and registered under the Securities Act of 1933 (15 U.S.C. 77) or exempt from such registration by Rule 156 of the Securities and Exchange Commis­ CREDIT BY INSURANCE COMPANIES sion (17 CFR 230-156) issued by (a) such in­ surance company, or (b) an investment company The Board of Governors also amended Regula­ registered pursuant to section 8 of the Investment tion T, effective May 15, 1970, so as to permit life Company Act of 1940 (15 U.S.C. 80a-8) for insurance companies subject to registration with which the insurance company is an underwriter, the Securities and Exchange Commission under investment advisor or dealer; and section 15 of the Securities Exchange Act of 1934 (ii) those activities which are not part of the (15 U.S.C. 78o) (because they offer or sell vari­ conventional lending activities of such life insur­ able annuity contracts) to extend, maintain, or ance companies and which, in accordance with arrange for credit subject to Regulation G rather the ordinary usage of the trade, would be con­ than to Regulation T, where the securities credit sidered part of the business of a broker or dealer. they extend is unrelated to transactions involving a variable annuity or a general securities business. The text of the amendment reads as follows: INTERPRETATION OF REGULATIONS G AND U AMENDMENT TO REGULATION T STATUS AFTER JULY 8, 1969, OF CREDIT EXTENDED PRIOR TO THAT DATE TO Effective May 15, 1970, section 220.7 is PURCHASE OR CARRY MUTUAL FUND amended by adding a new paragraph (f) to read as SHARES follows: Prior to July 8, 1969, the margin and other SECTION 220.7—MISCELLANEOUS requirements of Regulations G and U applied to PROVISIONS credit extended to purchase or carry shares of a sjc H5 H5 H5 mutual fund (secured by certain described col­ lateral), if (1) the portfolio of the fund did (f) Credit by insurance companies that issue “customarily include” securities that would them­ variable annuity contracts. (1) Except as provided selves have been subject to the regulations and in subparagraph (2) of this paragraph, Part 207 (2) the fund was included in a list of such funds of this Chapter (Regulation G) rather than this that the Board published for this purpose. Part shall apply to any credit extended, main­ It was found that virtually all mutual funds met tained, or arranged for by a life insurance com­ the “customarily include” test. Accordingly, for pany which (i) meets the definition of “insurance administrative reasons, the Board discontinued company” set forth in section 2(a) (17) of the publication of the list and restated the rule to Investment Company Act of 1940 (15 U.S.C. 80acover all mutual funds except those at least 95 2(a)(17)) and (ii) is engaged in issuing or per cent of whose assets are continuously invested participating in the issuance of any variable an­ in exempted securities. nuity contract, or of any interest in a separate The Board made these changes, effective July account established by such insurance company, 8,-1969, in Regulation G (Code of Federal Regula­ registered under the Securities Act of 1933 (15 tions, Title 12, Part 207) by adding a new § 207.2 U.S.C. 77) or exempt from such registration by Rule 156 of the Securities and Exchange Com­ (d) (while eliminating former § 207.2(c)(3) and mission (17 CFR 230.156). § 207.4(b)), and in Regulation U (Code of Fed­ (2) The provisions of this Part shall apply to eral Regulations, Title 12, Part 221) by adding a any credit extended to or maintained or arranged new §221.3(v) (while eliminating former § 221.3 for a customer by a life insurance company de­ (b)(3) and § 221.3(d)). scribed in subparagraph (1) of this paragraph that The Board has received several questions re­ has registered, or is required to register, as a specting the effect of the amendments on certain broker or dealer pursuant to section 15 of the stock-secured credits that were extended prior to Securities Exchange Act of 1934 (15 U.S.C. 78o) July 8, 1969, to purchase or carry mutual fund in connection with its activities as such a broker or shares and were treated as not subject to Regula­ dealer, including: tions G or U at the time of extension on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 447 ground that the funds were not on the Board’s carry margin securities is considered to be extended published list. for that purpose. Banks extending credit to such The Board has held that whether a loan is for customers must treat the credit as subject to that the purpose of purchasing or carrying a stock not regulation, and the credit must comply with all registered on a national securities exchange depends the requirements thereof “unless the credit and on the present status of the stock. Thus, a credit its purposes are effectively and unmistakably sep­ is treated as one for such a purpose if used to arated and disassociated from any financing or re­ purchase or carry a stock that became registered financing, for the customer or others, of any pur­ after the loan was made. (1937 Federal Reserve chasing or carrying of [margin] stocks.” B ulletin 955; Published Interpretations f 6435). Since credit to purchase or carry mutual fund The converse is also true (1938 Federal Reserve shares (no matter when extended) is credit to pur­ B ulletin 90; Published Interpretations 11 6445). chase or carry margin stocks, any person or The same principle applies to the closely paral­ organization that engages, as an important activity, lel question in the present case. Credits extended in extending credit to purchase or carry such shares before July 8, 1969, to purchase or carry shares (with the exception mentioned) is a lender subject in the mutual funds in question were for the pur­ to § 221.3 (q) even though the funds were not on pose of purchasing or carrying “margin stocks” the Board’s list prior to July 8, 1969. However, as (Regulation U) or “margin securities” (Regula­ stated above, as an administrative matter the re­ tion G) even though, at the time of extension, the tention requirements of the regulations need apply funds were not on the Board’s published list. Ac­ only to all substitutions and withdrawals, occurring cordingly, if collateralized as specified in the regu­ on or after April 27, 1970, of collateral securing lations, the credits were subject to the pertinent such credit. regulation from the effective date of the amend­ ments, July 8, 1969. In view of the likelihood that § 221.3 (q) applies In applying the above interpretation, it should be to any loan to any financial institution which has borne in mind that the Board’s margin regulations pledged or offers to pledge mutual fund shares, are based on (1) the requirement of an initial de­ particularly shares which were not on the Board’s posit in connection with the original extension of list prior to July 8, 1969, a bank should treat any a credit, and (2) limitations on substitutions or such loan as being subject to the requirements of withdrawals of the collateral securing a credit. the regulation unless the borrower supplies clear In the latter category, the Board’s margin regu­ proof, to be preserved in the files of the bank, that lations apply a retention requirement to proceeds § 221.3 (q) does not apply or that the loan is of a sale of collateral in an undermargined loan “separated and disassociated” as specified in the (except for a same-day sale-and-purchase substi­ section. In this connection, a general statement, tution) in order to strengthen the margin status of such as that the credit is for “working capital” or the loan (§ 207.1 (j) of Regulation G and § 221.1 “general corporate purposes”, is insufficient evi­ (b) of Regulation U). While this requirement be­ dence that the requirements of the regulation are came applicable on July 8, 1969, to credit previ­ not applicable. ously extended to purchase shares in mutual funds that had not been on the Board’s list prior to that TRUTH IN LENDING date, the Board, in view of all the circumstances, will not insist upon reconstitution of loans to take The Board of Governors has amended Supple­ account of withdrawals and substitutions of col­ lateral before April 27, 1970, the date of issuance ment III to Regulation Z, “Truth in Lending”, of this interpretation, even though henceforth all effective June 1, 1970. The amendment exempts withdrawals and substitutions must comply with certain credit transactions in the State of Oklahoma the requirement. from the requirements of Chapter 2 of the Truth Application of § 221.3(q). Section 221.3(q) of in Lending Act (15 U.S.C. 1601ff)). The text of Regulation U provides that credit extended by the amendment reads as follows: banks to a customer who is engaged “principally, Effective June 1, 1970, Supplement III to Regu­ or as one of the customer’s important activities,” lation Z (Section 226.12—Supplement) is amended in the business of extending credit to purchase or by adding paragraph (c) as follows: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

448 FEDERAL RESERVE BULLETIN □ MAY 1970 SUPPLEMENT III TO REGULATION Z AM ENDM ENT TO RULES OF PROCEDURE SECTION 226.12— SUPPLEMENT Effective April 16, 1970, section 262.3(f)(4) State exemptions granted pursuant to § 226.12 is amended to read as follows: * * * * * SECTION 262.3— APPLICATIONS (c) Oklahoma. Except as provided in § 226.12 * * * * * (c), all classes of credit transactions within the State of Oklahoma are hereby granted an exemp­ (f) Bank holding company and merger appli­ tion from the requirements of Chapter 2 of the cations. Truth in Lending Act effective June 1, 1970, with * * * * * the following exceptions: (1) Transactions in which a federally char­ (4) The Board’s action on an application is em­ tered institution is a creditor; bodied in an Order that indicates the votes of (2) Consumer credit sales of insurance by an members of the Board and, where appropriate, is insurer; accompanied by a Statement of the reasons for (3) Transactions under common carrier tariffs the Board’s action. Both the Order and any accom­ in which the charges for the services involved, the panying Statement are released to the press; each charge for delayed payment and any discount Order is published in the Federal Register, and the allowed for early payment are regulated by a Order and any accompanying Statement are pub­ subdivision or agency of the United States or the lished in the Federal Reserve Bulletin. State of Oklahoma; and (4) Transactions in which a licensed pawn­ ORDERS UNDER BANK MERGER ACT broker is a creditor. PEOPLES TRUST OF NEW JERSEY HOLDING COMPANY AND MERGER STATEMENTS In the matter of the application of Peoples Trust of New Jersey for approval of merger with The In order to expedite processing of holding com­ Peoples National Bank of Hackettstown. pany and merger applications, the Board of Gov­ ernors has amended its Rules of Procedure, effec­ Order Approving Merger of Banks tive April 16, 1970, to eliminate statements with respect to certain actions on bank holding company There has come before the Board of Governors, and merger applications. Statements will continue to pursuant to the Bank Merger Act (12 U.S.C. 1828 be issued in all cases (1) in which an application for (c)), an application by Peoples Trust of New a bank acquisition is denied or (2) involving the Jersey, Hackensack, New Jersey, a State member formation of new bank holding companies. State­ bank of the Federal Reserve System, for the ments generally will be omitted in cases in which Board’s prior approval of the merger of that bank (a) the application is approved without dissent, and The Peoples National Bank of Hackettstown, (b) no hearing or oral presentation has been held, Hackettstown, New Jersey, under the charter and (c) the competitive effect is no worse than “slightly name of Peoples Trust of New Jersey. As an inci­ adverse” in the opinion of the Board or of the dent to the merger, the four offices of The Peoples reporting Federal agencies (See 12 CFR 250.182), National Bank of Hackettstown would become (d) there is no unusual feature that might set a branches of the resulting bank. Notice of the pro­ precedent for future cases, and (e) there are no posed merger, in form approved by the Board, has other unusual circumstances. In cases where state­ been published pursuant to said Act. ments are not issued, the Board’s orders will be Upon consideration of all relevant material in expanded to include the legal factors considered, the light of the factors set forth in said Act, includ­ an indication of the size of the institutions involved, ing reports furnished by the Comptroller of the and a brief summary of the reasons for the Board’s Currency, the Federal Deposit Insurance Corpora­ approval. The text of the amendment reads as tion, and the Attorney General on the competitive follows: factors involved in the proposed merger, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 449 It is hereby ordered, for the reasons set forth Hackettstown Bank operates its head office in in the Board’s Statement of this date, that said Hackettstown (population 10,300) in northeastern application be and hereby is approved, provided Warren County (population 75,500) and has re­ that said merger shall not be consummated (a) ceived approval to establish an in-town branch; the before the thirtieth calendar day following the date bank operates two branches in the County, both of this Order or (b) later than three months after of which are within five miles of its head office. the date of this Order unless such period is ex­ The only other banking office in Hackettstown is tended for good cause by the Board or by the a branch of Warren County National Bank (de­ Federal Reserve Bank of New York pursuant to posits $33 million). The nearest offices of Hackettstown Bank and Peoples Trust (including delegated authority. those approved but not yet opened) are 26 miles By order of the Board of Governors, April 21, apart, and there are a number of offices of other 1970. banks in the intervening area. There is no mean­ Voting for this action: Chairman Bums and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, ingful competition existing between the merger and Sherrill. proponents. (Signed) K enneth A. Kenyon, Hackettstown Bank is located in a market that Deputy Secretary is comprised of most of Warren County, plus the [seal] Townships of Mount Olive and Washington, which are located in adjoining Morris County. There are Statement 21 banking offices in this area, 19 of which are operated in Warren County by nine banks. Peoples Trust of New Jersey, Hackensack, New Hackettstown Bank, with 12 per cent of area Jersey (“Peoples Trust”), with total deposits of deposits, ranks third in this respect. Warren County $556 million, has applied, pursuant to the Bank National Bank, largest of the eight banks that are Merger Act (12 U.S.C. 1828(c)), for the Board’s headquartered in Warren County, is a proposed bank holding company affiliate of New Jersey’s prior approval of the merger of that bank with The largest bank; the State’s second largest bank oper­ Peoples National Bank of Hackettstown, Hackettsates three branches in Warren County. town, New Jersey (“Hackettstown Bank”), which New Jersey law permits a bank to establish a has deposits of $21.4 million.1 The banks would de novo branch in the banking district in which it merge under the charter and name of Peoples is headquartered, subject, however, to a home- Trust, which is a member of the Federal Reserve office-protection feature for all municipalities and System. As an incident to the merger, the four to a branch-office-protection feature for munici­ offices of Hackettstown Bank would become palities with populations under 7,500. Hacketts­ branches of Peoples Trust, increasing the number town Bank, largely because of its size, does not of its offices to 33.2 appear to be a likely entrant into the area now Competition. Peoples Trust is the fourth largest served by Peoples Trust. There are 25 municipali­ bank in New Jersey’s First Banking District and ties in the market in which Hackettstown Bank in the State, holding, respectively, 7.5 per cent and operates, but only six are open to entry by de novo 4 per cent of the deposits. The bank operates its branching, and the populations of these range from head office and 23 branches in Bergen County and about 70 to 3,000. It seems unlikely that Peoples has received approval to establish two additional Trust would find it economically feasible to branch branches in the County; it also operates a branch de novo into these municipalities now or in the in Essex County and in Morris County, and has near future. The merger of Peoples Trust and received approval to establish a second branch Hackettstown Bank would remove home-officein the latter County. In addition, Peoples Trust is protection from Hackettstown, which is the seat of affiliated through common shareholders with two Warren County and the second largest of three recently chartered banks in Bergen County, and major population centers in the market in which a third such affiliate is being organized. Hackettstown Bank operates. The National Union Bank of Dover (deposits $65 million), which is 1 Figures are as of December 31, 1969, except the de­ headquartered in Morris County, has filed an posits of Peoples Trust reflect those acquired through its application to establish a de novo branch in merger with Fort Lee Trust Company on February 20, 1970 (1970 Federal Reserve Bulletin 150). Hackettstown, contingent on approval of the appli­ 2 Includes authorized but unopened offices. cation in this case. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

450 FEDERAL RESERVE BULLETIN □ MAY 1970 The proposed transaction would have no more of the sole office of Union State Bank. Notice than a slightly adverse effect on competition. of the proposed acquisition of assets and assump­ Financial and managerial resources and pros­ tion of deposit liabilities, in form approved by the pects. The banking factors with respect to each of Board, has been published pursuant to the Bank the banks proposing to merge are satisfactory, ex­ Merger Act. cept the capital of Peoples Trust needs to be Upon consideration of all relevant material in strengthened. Peoples Trust is fully capable of in­ the light of the factors set forth in said Act, includ­ creasing its capital, and, it is expected, will do so ing reports furnished by the Comptroller of the soon. Thus, the banking factors with respect to Currency, the Federal Deposit Insurance Corpora­ Peoples Trust following its merger with Hacketts­ tion, and the Attorney General on the competitive town Bank would be satisfactory. factors involved in the proposed transaction, Convenience and needs of the community. The It is hereby ordered, for the reasons set forth effect of the merger on banking convenience and in the Board’s Statement of this date, that said needs would be limited to the area served by applications be and hereby are approved, provided Hackettstown Bank. that said acquisition of assets and assumption of The replacement of Hackettstown Bank by of­ deposit liabilities and establishment of the branch fices of Peoples Trust would provide a convenient shall not be consummated (a) before the thirtieth alternative source of full banking services for the calendar day following the date of this Order residents of the area now served by Hackettstown or (b) later than three months after the date of Bank and would remove home-office-protection in this Order unless such period is extended for good the case of the Hackettstown Community. As was cause by the Board or by the Federal Reserve indicated earlier, a bank headquartered in Morris Bank of Chicago pursuant to delegated authority. County has already filed an application to estab­ By order of the Board of Governors, April 21, lish a de novo branch in Hackettstown. 1970. Summary and conclusion. In the judgment of the Voting for this action: Chairman Bums and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, Board, the slightly adverse effect of the proposed and Sherrill. merger on competition would be outweighed by (Signed) K enneth A. Kenyon, the benefits for the banking convenience and needs Deputy Secretary of the Hackettstown community and environs. [seal] Accordingly, the Board concludes that the appli­ cation should be approved. Statement UNION BANK AND TRUST COMPANY Union Bank and Trust Company, Ottumwa, Iowa (“Union Bank”), with total deposits of $41.8 In the matter of the application of Union Bank million, has applied, pursuant to the Bank Merger and Trust Company for approval of acquisition Act (12 U.S.C. 1828(c)), for the Board’s prior of assets of Union State Bank. approval of its acquisition of assets and assumption of deposit liabilities of Union State Bank, Rich­ Order Approving Acquisition of Bank's land, Iowa (“State Bank”), which has total de­ Assets posits of $1.7 million.1 As an incident to the trans­ action, the sole office of State Bank would become There has come before the Board of Governors, a branch of Union Bank, increasing the number of pursuant to the Bank Merger Act (12 U.S.C. 1828 its offices to four.2 (c)), an application by Union Bank and Trust Competition. Union Bank operates its head of­ Company, Ottumwa, Iowa, a State member bank fice and one branch in Ottumwa (population of the Federal Reserve System, for the Board’s 35,000); the bank also operates a branch at Agency prior approval of its acquisition of assets and as­ (population 700), about five miles east of Ottum­ sumption of deposit liabilities of Union State Bank, wa. All offices of Union Bank are in Wapello Richland, Iowa, and, as an incident thereto, Union County and it is the largest of the three banks Bank and Trust Company has applied, under sec­ tion 9 of the Federal Reserve Act (12 U.S.C. figures are as of December 31, 1969. 2 State law permits limited-purpose branch offices only; 321), for the Board’s prior approval of the estab­ permissible activities include receiving deposits and paying lishment by that Bank of a branch at the location checks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 451 that are headquartered in Ottumwa, the County the banks are reasonably satisfactory, as they seat. The other two banks have deposits of $17 would be with respect to the resulting bank. million and $11 million, respectively. The only Convenience and needs of the community. The other bank headquartered in Wapello County is at transaction would affect banking convenience and Eldon (population 1,400), about 15 miles south­ needs only in the area presently served by State east of Ottumwa; the bank has deposits of $2 mil­ Bank. lion and is controlled by the chairman and presi­ Richland is a small community, the economy of dent of Union Bank. The only other bank with an which is heavily dependent on agriculture; it is not office in Wapello County is headquartered in Mon­ a trading or marketing center, and is not expected roe County and has deposits of $10 million; the to increase in population. The nearest relatively bank operates a branch at Eddyville, about 16 large community is Fairfield (population 8,000), miles northwest of Ottumwa. the seat of Jefferson County, which is 15 miles The sole office of State Bank is in Richland south of Richland. The chief executive officer of (population 500), which is in Keokuk County, State Bank, who owns over 90 per cent of the about 37 miles northeast of Ottumwa. There is no bank’s outstanding shares and who is beyond the other banking office in Richland. Three banks, normal retirement age, wishes to dispose of his with deposits ranging from $2 million to $10 mil­ interest in the bank. The proposed transaction lion, operate four offices within a nine-mile radius would have the advantage of assuring the con­ of State Bank. tinuance of a banking facility for the Richland There is no competition between Union Bank community. and State Bank and, due largely to the restrictions Summary and conclusion. In the judgment of of State law respecting branch banking, there is the Board, the proposed transaction would not no potential for the development of competition between them. have an adverse effect on competition and would The effect of the proposed merger on competi­ benefit the banking convenience and needs of the tion would not be adverse. Richland community. Financial and managerial resources and pros­ Accordingly, the Board concludes that the appli­ pects. The banking factors with respect to each of cation should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

452 FEDERAL RESERVE BULLETIN □ MAY 1970 ORDERS UNDER SECTION 3 OF BANK HOLDING By order of the Board of Governors, April 17, COMPANY ACT 1970. Voting for this action: Chairman Burns and Gov­ ernors Mitchell, Daane, and Sherrill. Voting against FIRST CONNECTICUT BANCORP, INC., this action: Governors Robertson and Maisel. Absent HARTFORD, CONNECTICUT and not voting: Governor Brimmer. (Signed) K enneth A. Kenyon, In the matter of the application of First Connecti­ Deputy Secretary. cut Bancorp, Inc., Hartford, Connecticut, for ap­ [seal] proval of action to become a bank holding company. Statement Order Approving Application to Become First Connecticut Bancorp, Inc., Hartford, Con­ Bank Holding Company necticut, (“Applicant”), has applied to the Board, pursuant to section 3(a)(1) of the Bank Holding There has come before the Board of Governors, Company Act of 1956, for prior approval of action pursuant to section 3(a)(1) of the Bank Holding to become a bank holding company, through the ac­ Company Act of 1956 (12 U.S.C. 1842(a)(1)) quisition of all of the voting shares of United Bank and section 222.3(a) of Federal Reserve Regulation and Trust Company, Hartford (“United Bank”), Y (12 CFR 222.3 (a)), an application by First Con­ and Simsbury Bank and Trust Company, Simsbury necticut Bancorp, Inc., Hartford, Connecticut, for (“Simsbury Bank”), and 80 per cent or more of the the Board’s prior approval of action whereby Ap­ voting shares of The New Britain National Bank, plicant would become a registered bank holding New Britain (“New Britain Bank”), all located in company through the acquisition of 100 per cent of the State of Connecticut. the voting shares of United Bank and Trust Com­ Views and recommendations of supervisory au­ pany, Hartford, and Simsbury Bank and Trust Com­ thorities. As required by section 3(b) of the Act, pany, Simsbury, and 80 per cent or more of the the Board notified the Comptroller of the Currency voting shares of The New Britain National Bank, and the Commissioner of Banks of the State of Con­ New Britain, all in the State of Connecticut. necticut of receipt of the application and requested As required by section 3(b) of the Act, the Board their views and recommendations thereon. Both the notified the Comptroller of the Currency and the Comptroller and the Commissioner recommended Commissioner of Banks of the State of Connecticut that the application be approved. of receipt of the application and requested their Statutory considerations. Section 3(c) of the Act views and recommendations. Both recommended provides that the Board shall not approve an acquisi­ that the application be approved. tion that would result in a monopoly or would be in Notice of receipt of the application was published furtherance of any combination or conspiracy to in the Federal Register on October 23, 1969 (34 monopolize or to attempt to monopolize the busi­ Federal Register 17464), which provided an oppor­ ness of banking in any part of the United States. tunity for interested persons to submit comments Nor may the Board approve a proposed acquisition and views with respect to the proposed transaction. the effect of which, in any section of the country, A copy of the application was forwarded to the may be substantially to lessen competition, or to tend United States Department of Justice for its con­ to create a monopoly, or which in any other manner sideration. The time for filing comments and views would be in restraint of trade, unless the Board finds has expired and all those received have been con­ that the anticompetitive effects of the proposed sidered by the Board. transaction are clearly outweighed in the public in­ It is hereby ordered, for the reasons set forth terest by the probable effect of the transaction in in the Board’s Statement of this date, that said ap­ meeting the convenience and needs of the com­ plication be and hereby is approved, provided that munities to be served. In each case the Board is re­ the action so approved shall not be consummated quired to take into consideration the financial and (a) before the thirtieth calendar day following the managerial resources and future prospects of the date of this Order or (b) later than three months bank holding company and the banks concerned, after the date of this Order, unless such period is ex­ and the convenience and needs of the communities tended for good cause by the Board, or by the Fed­ to be served. eral Reserve Bank of Boston pursuant to delegated Competitive effect of the proposed transaction. authority. Banking in the State of Connecticut is relatively Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 453 highly concentrated, with the two largest banks in the The three subject banks, as a group, would control State holding 37 per cent of the deposits held by the about 8 per cent of the deposits originating in the 64 commercial banks in Connecticut.1 Each of the Hartford area. two largest banks is about twice as large as the third Consummation of Applicant’s proposal would largest bank in the State. United Bank, the tenth eliminate some competition between United Bank largest, is about one-tenth the size of the largest and each of the other two proposed subsidiaries, bank, and less than one-ninth as large as the second and would reduce the number of competing bank­ largest. The 10 largest banks in the State hold 81 ing organizations in the Hartford area from 18 to per cent of the State’s commercial bank deposits. 16. On the other hand, Applicant would present a United Bank ($90 million deposits), the largest much stronger competitive alternative to the two of the proposed subsidiaries, is headquartered in larger banks in the Hartford area. Hartford, and has 16 offices in 10 cities and towns in In determining the relative weight to be assigned the central and southeastern portions of the State. to those competitive effects which are adverse to Ap­ Simsbury Bank ($25 million deposits) has four plicant’s proposal and those which are favorable to offices: its main office in Simsbury, and a branch in it, it is significant that banking concentration in the each of the adjacent towns of Avon, Granby, and Hartford area results not from a lack of a sufficient Canton. New Britain Bank ($52 million deposits) number of competitors, but from the fact that the has six offices: three in New Britain, two in Berlin, two dominant banks in the area far outstrip the and one in West Hartford. other 16 both in overall size and in market share. All but two of the offices of United Bank are In view of this, it is concluded that competition located within, or at the fringes of, a market ap­ will not be significantly lessened by the reduction proximated by a geographic area within a radius of in competitive alternatives which would result from 15 miles of the center of the city of Hartford. This consummation of the proposal. Rather, it appears area, hereinafter referred to as “the Hartford area,” that competition would be promoted as a result of also encompasses all of the offices of Simsbury Bank the more balanced market structure which would and New Britain Bank. The head offices of the three be brought about by the creation of a third strong subject banks are 10-12 miles apart. The nearest organization in the area. In addition, with a strong office of United Bank is about six miles from any base in the Hartford area, Applicant would con­ office of Simsbury Bank, and four miles from an stitute a significant potential competitor in other office of New Britain Bank; no office of Simsbury concentrated markets in the State. Bank is within 12 miles of an office of New Britain The Board concludes that consummation of the Bank. proposed transaction would not result in a monop­ To an even greater extent than is true of the State oly or be in furtherance of any combination, con­ as a whole, banking in the Hartford area is domi­ spiracy or attempt to monopolize the business of nated by the State’s two largest banks, both of banking in any area, and would not substantially which are headquartered in the area. These two lessen competition, tend to create a monopoly, or banks, Connecticut Bank and Trust Company ($830 restrain trade in any section of the country. million deposits) and Hartford National Bank and Financial and managerial resources and future Trust Company ($901 million deposits) have a prospects. Applicant would begin operations with a combined total of 43 offices in the Hartford area, satisfactory financial condition. Its management which account for over 80 per cent of the area de­ would be comprised of competent and experienced posits held by 18 banks competing therein. As a senior management of the three subsidiary banks result of its downtown Hartford location, coupled and its prospects, which would be dependent upon with area commuting patterns, United Bank, the those of the proposed subsidiaries, appear favor­ third largest bank in the area in overall size com­ able. petes to some extent throughout the area. Its com­ The financial condition and management of the petitive force, however, is not nearly the equal of proposed subsidiaries are satisfactory, and the pros­ the two larger banks, which have offices blanketing pects of all three are favorable. the area. New Britain Bank and Simsbury Bank, the These considerations are consistent with approval fourth and sixth largest in the area, serve a limited of the application. portion of the area, as do the area’s 13 other banks. Convenience and needs of the communities in­ *A11 banking data are as of June 30, 1969, adjusted to volved. Hartford is located in central Connecticut, reflect mergers approved by supervisory authorities to date. about 115 miles northeast of New York City and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

454 FEDERAL RESERVE BULLETIN □ MAY 1970 102 miles southwest of Boston. It is one of the Here, the three subject banks are all located in world’s leading insurance centers, and the State’s the Hartford market. Although each of them is primary financial center. Manufacturing in the substantially smaller than either of the two largest Hartford area is highly diversified, but there is banks in the area, they are among the very largest heavy emphasis on the fabricated metals, aircraft, of the remaining area banks, ranking third, fourth and machinery industries. and sixth in size among 18 banks in the Hartford As earlier indicated, the Hartford area is served area. Each is a capable competitor, with demon­ by a large number of banks, including the two larg­ strated ability to establish branches outside the town est in the State. The area is also served by a large or city in which it is headquartered. United Bank number of mutual savings banks, with aggregate is headquartered in Hartford, the principal city deposits which are only slightly less than those held in the area. It serves persons commuting to the city by the commercial bank offices located in the same from all parts of the area, and, additionally, has area. The banking needs of the Hartford area are several offices in other parts of the area. New adequately served at present, and the principal Britain Bank and Simsbury Bank serve econom­ effect of Applicant’s proposal would be to improve ically significant segments of the area, and United the services offered by the three proposed sub­ Bank is a significant competitor for business arising sidiaries, making them more competitive with serv­ in both of the areas served by the two smaller ices offered by the larger banks. Applicant proposes banks. (A large portion of the Simsbury popula­ to expand and improve business lending, trust, and tion commutes to Hartford). municipal financing services of the subject banks. In Simsbury, where Simsbury Bank maintains While the lending ability of Applicant’s organiza­ the only banking office serving a population of over tion would continue to be far less than that of its 16,000, the anticompetitive effects of the pro­ largest competitors, • the increased facility for ar­ posal will be especially serious. Under Connecticut ranging participations would enable the subsidiary law, a bank is permitted to establish branches at banks to compete meaningfully in meeting a larger any location in the State, except that it may not portion of the area’s credit needs than any of them establish a branch in any town in which another can serve alone. bank is headquartered. The law appears to make no These considerations support approval of the ap­ exception to the latter prohibition in a case where plication. the bank which is headquartered in the town is a Summary and conclusion. On the basis of all subsidiary of a bank holding company. Thus, it relevant facts contained in the record, and in the appears that, for the indefinite future, there will light of the factors set forth in section 3(c) of the continue to be only one bank in Simsbury, in the Act, it is the Board’s judgment that the proposed absence of a new bank being chartered in the acquisition would be in the public interest, and that town. The fact that such local monopoly will be the application should be approved. maintained under the present proposal makes it especially undesirable that United Bank (one of Dissenting Statement of Governor Robertson the larger banks in Hartford) will no longer pres­ ent meaningful alternative banking facilities com­ Mr. Justice Holmes once said: “Men must turn petitive with those provided by the Simsbury Bank. square corners when they deal with the govern­ The lessening of competition which will result ment”. (Rock Island, A. & L. R.R. Co. v. United from consummation of Applicant’s proposal will States, 254 U.S. 141, 143 (1920)). Likewise, in be substantial by any reasonable measure. That be­ my view, the public is entitled to expect that gov­ ernment agencies will “turn square corners” in ing the case, the statutory criteria require that the carrying out a Congressional mandate. application be denied, unless such anticompetitive In the Bank Holding Company Act, Congress effects are clearly outweighed by the statutory forbade the approval of any acquisition the effect “convenience and needs” factor. The convenience of which “may be substantially to lessen competi­ and needs of the community to be served, in the tion or to tend to create a monopoly” (the language present case, are well met indeed. There admittedly of section 7 of the Clayton Act), unless the anti­ are no such needs going unserved. competitive effects “are clearly outweighed in the The Board’s majority avoids the necessity of public interest by the probable effect of the trans­ finding a clear outweighing of the anticompetitive action in meeting the convenience and needs of effects of the proposal by concluding that competi­ the community to be served.” tion will not be substantially lessened. That conclu­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 455 sion is reached by attributing offsetting weight in the tives which would have equally accomplished any competitive balance to the greater ability of the beneficial effects from its formation. It chose the subject banks, under Applicant’s proposal, to com­ most anticompetitive of them. Any weight in favor pete with the two larger banks in their market. The of approval which could be accorded the beneficial Act, however, provides no authority for a restruct- effects fails to offset the anti-competitive impact of ing of the nation’s banking system in the image of the procedure selected. the market’s largest banking organizations. On the An organization resulting from a combination contrary, the intent of Congress was to preserve a of three banks of the size of those involved in the framework for a system in which sound banks, present case, but located in separate markets, both large and small, would compete in serving would possess the same financial and managerial the markets in which they are located. strength as Applicant will possess, without reducing Combinations of moderate-sized banks under the number of competitive alternatives in any the holding company format might be permissible market. Additionally, such a combination would if such banks were located in separate markets, but result in strengthening a moderate-sized competi­ when three viable banks compete to a significant tor in each of three markets involved, rather than degree in the same market, (as in this case), their only in one, as here. A proposal such as Appli­ combination inevitably lessens competition in that cant’s, which joins competing moderate-sized banks market substantially, and in such a case the statute is actually counter-productive to the attainment of clearly defines the limited circumstances under a balanced banking structure, because it reduces which approval of their affiliation can be granted. the likelihood that a multi-market organization will Those circumstances simply are not present in be able to find in Hartford a suitable vehicle for this case. participation in that market. With respect to the limits on its own authority, A particularly disturbing aspect of the proposal is the Supreme Court has said: the effect of the “home office protection” feature Though our preference were for monopoly and against of Connecticut law, which fails to distinguish be­ competition, we should “guard against the danger of tween an independent bank and a holding company sliding unconsciously from the narrow confines of law into the more spacious domain of policy.” Denver subsidiary. The result is that the proposed holding Stock Yard Co. v. Livestock Assoc., 356 U.S. 282, 289 company, in addition to its other advantages, will (1958) be preserved from competition in sub-markets A regulatory agency, no less than a Court, should served by its subsidiaries. This is an advantage take a statute as it is written; it should turn square which even the two largest banks in the State do corners in administering laws. The statutory criteria, not possess with respect to their branching areas. as applied to the facts of this case, dictate that the In Simsbury, the effect will be to perpetuate a application should be denied. condition whereby local residents and businesses are denied the convenience and competitive advantages Dissenting Statement of of alternative banking facilities which almost cer­ Governor Maisel tainly would develop within the community if the I share the view that the anticompetitive effects area were opened to branching by other banks. of Applicant’s proposal are not outweighed by any Although this inequitable situation results from a other considerations presented in the record, and peculiarity of State law, rather than the holding therefore join with Governor Robertson in dissent­ company format per se, it is an effect which cannot ing from the Board’s action. reasonably be ignored in determining the public in­ It is true that a more balanced banking structure terest with respect to a holding company proposal in the State of Connecticut could result in a arising in such a State. healthier competitive environment in banking mar­ In the absence of any publicly beneficial effects kets throughout the State. But that does not suggest which could not be accomplished in a less anti­ that any proposal which an Applicant might con­ competitive manner, I would deny the application. ceive to strengthen a moderate-sized competitor warrants approval because of that fact; it is the BANCOHIO CORPORATION, proposal’s total effect on competition which must COLUMBUS, OHIO be considered. In the present case, the Applicant, the first bank holding company to be formed in In the matter of the application of BancOhio Connecticut, had a wide range of possible alterna­ Corporation, Columbus, Ohio, for approval of ac­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

456 FEDERAL RESERVE BULLETIN □ MAY 1970 quisition of up to 100 per cent of the voting shares applied to the Board of Governors, pursuant to of The Community Bank, Napoleon, Ohio. section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)), for prior Order Approving Acquisition of Bank Stock approval of the acquisition of up to 100 per cent by Bank Holding Company of the voting shares of The Community Bank, Napoleon, Ohio (“Bank”). There has come before the Board of Governors, Views and recommendation of supervisory au­ pursuant 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 Regula­ the Superintendent of Banks for the State of Ohio, tion Y (12 CFR 222.3(a)) an application by and his views and recommendation were requested. BancOhio Corporation, Columbus, Ohio, a regis­ The superintendent recommended approval of the tered bank holding company, for the Board’s prior application. approval of the acquisition of up to 100 per cent Statutory considerations. Section 3(a) of the of the voting shares of The Community Bank, Act provides that the Board shall not approve an Napoleon, 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 appli­ conspiracy to monopolize or to attempt to mo­ cation to the Superintendent of Banks for the nopolize the business of banking in any part of the State of Ohio and requested his views and recom­ United States. Nor may the Board approve a pro­ mendation. The Superintendent recommended ap­ posed acquisition, the effect of which, in any sec­ proval 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 February 20, which in any other manner would be in restraint of 1970 (35 Federal Register 3265), providing an trade, unless the Board finds that the anticompeti­ opportunity for interested persons to submit com­ tive effects of the proposed transaction are clearly ments and views with respect to the proposal. A outweighed in the public interest by the effect of copy of the application was forwarded to the the transaction in meeting the convenience and United States Department of Justice for its con­ needs of the communities to be served. In each sideration. The time for filing comments and views case, the Board is required to take into considera­ has expired and all those received have been con­ tion the financial and managerial resources and fu­ sidered by the Board. ture prospects of the bank holding company and It is hereby ordered, for the reasons set forth the banks concerned, and the convenience and in the Board’s Statement of this date, that said needs of the communities to be served. application be and hereby is approved, provided Competitive effect of the proposed transaction. that the acquisition so approved shall not be con­ Applicant is the largest bank holding company and summated (a) before the thirtieth calendar day fol­ the second largest banking organization located in lowing the date of this Order or (b) later than three the State of Ohio. It operates 23 banking sub­ months after the date of this Order, unless such sidiaries, with total deposits of approximately $1.1 period is extended for good cause by the Board, or billion.1 Applicant holds 6 per cent of the deposits by the Federal Reserve Bank of Cleveland pursuant held by all banking organizations in Ohio; its share to delegated authority. of such deposits would increase to 6.1 per cent as a By order of the Board of Governors, April 21, result of the present proposal. 1970. Bank, which has $16.9 million deposits, operates Voting for this action: Chairman Burns and Gov­ two offices in Napoleon, Ohio (population 8,000), ernors Robertson, Daane, Maisel, and Brimmer. Absent and not voting: Governors Mitchell and Sherrill. the county seat of Henry County (population (Signed) K enneth A. Kenyon, 27,000). It is the largest of six banks in the county. Bank’s principal competitor ($6.8 million de­ Deputy Secretary. [seal] posits) is headquartered in Holgate, Ohio, 11 miles south of Napoleon, and has two branches, includ­ Statement ing one recently established in Napoleon. Four XA11 banking data are as of June 30, 1969, and reflect BancOhio Corporation, Columbus, Ohio (“Ap­ holding company formations and acquisitions approved by plicant”) a registered bank holding company, has the Board to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 457 other banks, ranging in deposit size from $3.5 mil­ affiliation with Applicant would provide it with an lion to $5.1 million are located in Henry County, assured source of future management strength, and 10-22 miles from Napoleon. Applicant is expected to encourage greater utiliza­ Applicant’s present subsidiaries are located in 22 tion of Bank’s resources. Prospects of Bank, which separate counties in central Ohio. Henry County are favorable in any event, would be enhanced by is in the northwestern section of the State, and is these measures. not contiguous to any county in which Applicant The Board concludes that considerations under has a subsidiary. Applicant’s closest subsidiary is the banking factors lend some weight toward ap­ located 62 miles from Napoleon, and no competi­ proval of the application. tion presently exists between Bank and any of Convenience and needs of the communities in­ Applicant’s subsidiaries. Further, since Ohio law volved. Consummation of the proposal would have restricts branching to the county in which a bank no effect on customers served by Applicant’s present is headquartered, it does not appear that such com­ subsidiaries. petition is likely to develop in the future. The record before the Board indicates that the Despite the fact that it is the largest bank in major bank service requirements arising in Henry Henry County, it does not appear that Bank has County are presently served by existing facilities. been an aggressive competitor. Its loan-to-deposit However, Bank’s loan to deposit ratio has been low, ratio is the lowest of the six county banks, and its and, in spite of the fact that Henry County is pre­ overly conservative lending policy is also reflected dominantly agricultural, only a small percentage of in the fact that at a time when no other bank had Bank’s loans are agricultural. The proposed affilia­ an office within eight miles of Napoleon, three of tion will encourage the liberalization of Bank’s con­ them derived between 20 per cent and 25 per cent servative lending policies. In addition, Applicant of their loan business from residents of that intends to expand Bank’s services by offering fi­ city. During the five-year period ending December nancial counseling, trust services and international 31, 1968, Bank’s loans increased by only 1.5 per banking facilities. cent, compared with increases ranging from 6.4 Considerations relating to the convenience and per cent to over 74 per cent by the other five banks. needs factors, therefore, weigh in favor of ap­ It appears that Bank’s greater size, as com­ proval of the application. pared with other banks in Henry County, is at­ Summary and conclusion. On the basis of all tributable to its more favorable location rather relevant facts contained in the record and in the than its competitive posture. Acquisition by Appli­ light of the factors set forth in section 3(c) of the cant would likely result in an increase in Bank’s Act, it is the Board’s judgment that the proposed aggressiveness and in greater utilization of its re­ acquisition would be in the public interest, and sources to benefit its community. It does not ap­ that the application should be approved. pear that there would be any undue adverse effect on competing banks. MERRILL BANKSHARES COMPANY, Based upon the foregoing, the Board concludes BANGOR, MAINE that consummation of the proposed acquisition would not result in a monopoly, nor be in further­ In the matter of the application of Merrill Bank­ ance of any combination, conspiracy or attempt to shares Company, Bangor, Maine, for approval of monopolize the business of banking in any area, acquisition of all of the voting shares of the suc­ and would not substantially lessen competition, cessor by merger to Federal Trust Company, Watend to create a monopoly, or restrain trade in any terville, Maine. section of the country. Financial and managerial resources and future Order Approving Acquisition of Bank Stock prospects. The financial condition of Applicant by Bank Holding Company and its present subsidiaries is generally satisfactory and its management is considered competent. Fu­ There has come before the Board of Governors, ture prospects of the group appear favorable. pursuant to section 3(a)(3) of the Bank Holding Bank’s financial condition is satisfactory. Its prin­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) cipal executive officer and its cashier, however, and section 222.3(a) of Federal Reserve Regula­ have reached the usual retirement age, creating po­ tion Y (12 CFR 222.3(a)), an application by Mer­ tential management succession problems. Bank’s rill Bankshares Company, Bangor, Maine, a reg­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

458 FEDERAL RESERVE BULLETIN □ MAY 1970 istered bank holding company, for the Board’s prior tice of receipt of the application was given to, and approval of the acquisition of all of the voting views and recommendation requested of, the Maine shares of the successor by merger to Federal Trust Bank Commissioner. The Commissioner interposed Company, Waterville, Maine. no objection to approval of the application. As required by section 3(b) of the Act, the Statutory considerations. Section 3(c) of the Act Board notified the Maine Bank Commissioner of provides that the Board shall not approve an ac­ receipt of the application and requested his views quisition that would result in a monopoly or would and recommendation. The Commissioner inter­ be in furtherance of any combination or conspiracy posed no objection to approval of the application. to monopolize or to attempt to monopolize the Notice of receipt of the application was pub­ business of banking in any part of the United lished in the Federal Register on November 5, States. Nor may the Board approve a proposed 1969 (34 Federal Register 17931), 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 com­ submit comments and views with respect to the petition, or to tend to create a monopoly, or which proposed transaction. A copy of the application in any other maniier would be in restraint of trade, was forwarded to the United States Department of unless the Board finds that the anticompetitive ef­ Justice for its consideration. The time for filing fects of the proposed transaction are clearly out­ comments and views has expired and all those re­ weighed in the public interest by the probable effect ceived have been considered by the Board. of the transaction in meeting the convenience and It is hereby ordered, for the reasons set forth needs of the communities to be served. In each in the Board’s Statement of this date, that said case the Board is required to take into consideration application be and hereby is approved, provided the financial and managerial resources and future that the acquisition so approved shall not be con­ prospects of the bank holding company and the summated (a) before the thirtieth calendar day fol­ banks concerned, and the convenience and needs lowing the date of this Order or (b) later than of the communities to be served. three months after the date of this Order, unless Competitive effect of the proposed transaction. such period is extended for good cause by the Applicant controls about $89 million in deposits, Board, or by the Federal Reserve Bank of Boston and is the sixth largest banking organization and pursuant to delegated authority. the smallest of four bank holding companies oper­ By order of the Board of Governors, April 27, ating in Maine.1 The 10 largest banking organiza­ 1970. tions, which include the four bank holding com­ Voting for this action: Chairman Burns and Gov­ panies, control about $887 million in deposits, rep­ ernors Mitchell, Daane, and Sherrill. Voting against this resenting 82 per cent of the total deposits held by + action: Governors Robertson, Maisel, and Brimmer. all commercial banks in the State. Upon acquisi­ (Signed) K enneth A. Kenyon, tion of Federal Trust, which has deposits of $40 Deputy Secretary. million, Applicant would become the fourth larg­ [seal] est of such organizations; it would control 11.8 per cent of total commercial bank deposits in the State, Statement an increase from 8.1 per cent. Merrill Bankshares Company, Bangor, Maine Applicant’s subsidiary banks are Merrill Trust (“Applicant”), a registered bank holding com­ Company, Bangor, ($81 million deposits) and pany, has applied to the Board, pursuant to section Washburn Trust Company, Washburn ($8 mil­ 3(a)(3) of the Bank Holding Company Act of lion in deposits), both of which are in Maine. Since 1956, for prior approval of the acquisition of all its formation in 1969, Applicant has competed of the voting shares of a new State bank into which principally in the Bangor area through Merrill Trust it proposes to merge Federal Trust Company, Wa­ Company and in the northeastern corner of the terville, Maine (“Federal Trust”). The new bank State through its other subsidiary bank. Federal has no significance except as a means of acquiring Trust has six offices, and principally serves the all of the shares of the bank to be merged into it; Waterville market, which encompasses the area the proposal is therefore treated herein as a pro­ within a 15 mile radius of Waterville. The distance posal to acquire shares of Federal Trust. XA11 banking data are as of June 30, 1969, unless other­ Views and recommendation of supervisory au­ wise noted, and reflect all holding company formations and thority. As required by section 3(b) of the Act, no­ acquisitions approved by the Board to date. 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LAW DEPARTMENT 459 between Federal Trust’s home office in Waterville proposal would have procompetitive effects of and Merrill Trust’s main office in Bangor is about much greater significance than the adverse effects of 45 miles. No branch of Federal Trust is within the elimination of the aforedescribed present and 15 miles of an office of Merrill Trust. Because of potential competition. First, although Federal Trust the distance separating Waterville from Bangor, has been an able competitor in the Waterville area, there is no significant competition between main it has shown no inclination until recently to expand offices of the two banks. It does appear that some into the southern area of Kennebec County, which of the branches of the two banks are sufficiently includes the Augusta market dominated by De­ proximate to be regarded as reasonably convenient positors Trust Company. Recently, however, it has alternative sources of banking service for residents proposed to open a new branch in Augusta. While of the small towns located between them. How­ the proposed affiliation is perhaps not essential to ever, the total population of the towns so located the establishment of such a branch, it seems clear is less than 5,000, and the amount of business in­ that Federal Trust would be better able to offer volved is a very minor portion of the total deposits significant competition to Depositors Trust Com­ and loans of either bank. It therefore appears highly pany in the Augusta area as a subsidiary of Appli­ unlikely that the policies, prices, or competitive cant than it would as an independent bank. A posture adopted by either bank are significantly significant potential therefore exists that consum­ affected by the competition of the other. Rather, mation of Applicant’s proposal could facilitate in­ the principal competitive stimulus to Federal Trust creased competition in one of the State’s most sig­ is, and, regardless of Board action on the present nificant markets. Also, with representation irr two application, will continue to be Depositors Trust of the State’s larger banking markets (Bangor and Company ($139 million deposits), which is by far Waterville), and the ability to expand through the largest bank in the State; which, like Federal branching into a third (Augusta), and with the Trust, is headquartered in Kennebec County; and increased size which would result from the pro­ which has a branch in Waterville. Similarly, the posed acquisition, Applicant would have a greater principal competitors of Merrill Trust are, and ability to expand through procompetitive means will remain, the other banks headquartered in into other markets in the State, thereby significantly Bangor. The elimination of the minimal competi­ increasing potential competition in those areas. tion between Federal Trust and Merrill Trust is On balance, it is the Board’s view that com­ therefore not regarded as a significant adverse con­ petitive considerations are at least consistent with sideration with respect to the present application. approval of the application. With regard to potential competition, neither On the basis of the foregoing, the Board con­ Federal Trust nor Merrill Trust is able, under cludes that consummation of the proposed acquisi­ State law, to branch into the county principally tion would not result in a monopoly or be in fur­ served by the other, except into a town which has therance of any combination, conspiracy, or attempt no banking office. However, it is possible, with to monopolize the business of banking in any supervisory approval, for banks in the State to relevant area, and would not substantially lessen branch without restriction into counties contiguous competition, tend to create a monopoly, or restrain to that in which they are headquartered, as well as trade in any section of the country. within their home office county. Two counties, Financial and managerial resources and future Somerset and Waldo, are contiguous to both Ken­ prospects. The financial condition and manage­ nebec County (in which Waterville is located) and ment of Applicant, its subsidiary banks, and of Penobscot County (in which Bangor is located), Federal Trust are satisfactory, and their prospects and therefore are within the unrestricted branching appear favorable. area of both Federal Trust and Merrill Trust. Al­ Considerations relating to the banking factors are though some potential thus exists for increased com­ consistent with approval of Applicant’s proposal. petition between the two banks, the possibility that Convenience and needs of the communities in­ significant competition would develop as a result volved. The banking needs of residents of the area of extensive branching by either of them in the served by Applicant’s present subsidiaries and by intervening counties is extremely remote, because Federal Trust appear to be adequately served at of the economic unattractiveness of the areas in­ present. However, all of the areas involved would volved as branch sites. benefit from the greater facility with which the In the Board’s judgment, consummation of the banks will be able to meet larger credit needs in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

460 FEDERAL RESERVE BULLETIN □ MAY 1970 the communities which they serve, through loan the headquarters county of Applicant’s largest sub­ participations among them. Federal Trust and the sidiary, Merrill Trust Company. Both banks have present subsidiaries of Applicant would, as a re­ offices in Waldo County, and Federal Trust has sult of the increase in the resource of Applicant’s offices in southern Somerset County which com­ system, have greatly expanded credit capability. In pete to some extent with offices of Merrill Trust addition, Federal Trust will have access to spe­ Company which are located near the county line. cialists on trust matters, lending, and daily opera­ Existing competition between offices of Bank and tions, and to the computer facilities of Applicant’s Merrill Trust Company for business arising in the organization, which should result in improvements two counties would therefore be eliminated by the in the services which it offers. Applicant also pro­ proposal, and a potential would be foreclosed for poses a more extensive branch system for Federal increased competition which could arise in the Trust, which should lead to better service in towns event of increased branching by either in the in­ which presently have no banking office or no sig­ tervening counties. Applicant would become the nificant competitive alternative. dominant organization over a broad area of north­ Considerations under this factor favor approval eastern Maine, encompassing the entire area from of the application. Bangor to Waterville, 45 miles southwest. Two Summary and conclusion. On the basis of all bank holding companies, Applicant and Depositors relevant facts contained in the record, and in light Corporation, the State’s largest banking organiza­ of the factors set forth in section 3(c) of the Act, it tion, would dominate the area from Augusta to is the Board’s judgment that the proposed transac­ Bangor as a result of the elimination of the inde­ tion would be in the public interest and that the pendent status of the only significant banking alter­ application should be approved. native located in the 60 mile area intervening those two cities. Dissenting Statement of Governors It seems apparent to us that an acquisition which Robertson, Maisel, and Brimmer would not only lead to further concentration of We dissent from the Board’s action because of State-wide banking resources, but which would also our view that consummation of Applicant’s pro­ eliminate significant present and potential competi­ posal will have significant adverse competitive ef­ tion and extend the dominance of the Applicant fects which are not outweighed by any other con­ into an adjacent banking market, is not in the public siderations. interest unless such anticompetitive effects are Maine is a State with a very small number of large, justified by a demonstrated need for additional bank­ or even moderate-sized, banking organizations. Only ing services in the area involved. No such need is 10 banking organizations in the State have de­ evidenced in the present record. Federal Trust is a posits of over $20 million. These 10 organizations, sound, well managed, full-service institution which among which are four bank holding companies, appears to be adequately serving its area. There is control over 80 per cent of the deposits held by all no apparent need for it to affiliate with a holding banks in the State. Applicant, the sixth largest of company in order to preserve its viability or ability such organizations, proposes, under the present to serve, and, even if there were such a need, the application, to become the fourth largest through present proposal represents one of the most anti­ acquisition of a bank which is the eighth largest competitive of several alternatives available to it. organization and the fourth largest independent The Board’s majority finds the anticompetitive bank in the State. It is obvious that the effect of effects of Applicant’s proposal to be outweighed that acquisition will be to concentrate the deposits by the stronger competition which Applicant could of the State among still fewer organizations. potentially offer in Augusta and in other markets But this is not the only, nor even the principal, in the State. In a State such as Maine, the develop­ anticompetitive effect of the proposed acquisition. ment of strong organizations capable of competing Under Maine law, a bank is permitted to branch in most or all of the State’s significant markets is freely in the county in which it is located and in an appropriate goal. But that development should counties contiguous thereto; outside of those areas, be accomplished in a manner which maximizes, it may branch only into a town which has no bank­ rather than minimizes, the number of existing and ing office. Waldo County and Somerset County are potential competitors in each of the markets in­ contiguous to both Kennebec County, in which volved. The present proposal is but one of several Federal Trust is located, and Penobscot County, alternative affiliations available to Federal Trust; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 461 each of them would increase the bank’s competitive A copy of the application was forwarded to the ability and increase the potential of the organiza­ United States Department of Justice for its consider­ tion involved for expansion into other markets in ation. The time for filing comments and views has the State. Most of them, however, would do so expired and all those received have been considered without eliminating existing or potential competi­ by the Board. tion in any area of the State, and, therefore, are It is hereby ordered, for the reasons set forth competitively preferable to the present proposal. in the Board’s Statement of this date, that said Since the only effects which are arguably favorable application be and hereby is approved, provided to Applicant’s proposal could be accomplished that the action so approved shall not be consum­ through much less anticompetitive means, they mated (a) before the thirtieth calendar day follow­ provide no basis for approval of the application. ing the date of this Order or (b) later than three Under all the circumstances of this case, we months after the date of this Order, unless such believe that the statutory criteria require that the period is extended for good cause by the Board, application be denied. or by the Federal Reserve Bank of St. Louis pur­ suant to delegated authority. By order of the Board of Governors, April 27, U. N. BANCSHARES, INC., 1970. SPRINGFIELD, MISSOURI Voting for this action: Chairman Burns and Govovernors Robertson, Maisel, and Brimmer. Absent and In the matter of the application of U. N. Banc­ not voting: Governors Mitchell, Daane, and Sherrill. shares, Inc., Springfield, Missouri, for approval of (Signed) K enneth A. Kenyon, action to become a bank holding company through Deputy Secretary. the acquisition of up to 100 per cent of the voting [seal] shares of The Union National Bank of Springfield, and of Springfield National Bank, both in Spring­ field, Missouri. Statement U. N. Bancshares, Inc., Springfield, Missouri Order Approving Action to Become (“Applicant”), has filed with the Board, pursuant Bank Holding Company to section 3(a)(1) of the 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)(1) of the Bank Holding acquisition of up to 100 per cent of the voting Company Act of 1956 (12 U.S.C. 1842(a)(1)), shares of The Union National Bank of Spring­ and section 222.3(a) of Federal Reserve Regula­ field (“Union Bank”), and Springfield National tion Y (12 CFR 222.3(a)), an application by Bank (“Springfield Bank”), both in Springfield, U. N. Bancshares, Inc., Springfield, Missouri, for Missouri. the Board’s prior approval of action whereby Ap­ Views and recommendation of supervisory au­ plicant would become a bank holding company thority. As required by section 3(b) of the Act, through the acquisition of up to 100 per cent of the Board gave written notice of receipt of the the voting shares of The Union National Bank of application to the Comptroller of the Currency Springfield and Springfield National Bank, both in and requested his views and recommendation. The Springfield, Missouri. Comptroller did not object to approval of the As required by section 3(b) of the Act, the proposed transaction. Board gave written notice of receipt of the appli­ Statutory considerations. Section 3(c) of the cation to the Comptroller of the Currency and re­ Act provides that the Board shall not approve an quested his views and recommendation. The Comp­ acquisition that would result in a monopoly or troller did not object to approval of the proposed would be in furtherance of any combination or con­ transaction. 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 March 11, 1970 States. Nor may the Board approve a proposed (35 Federal Register 4351), which provided an op­ acquisition, the effect of which, in any section of portunity for interested persons to submit comments the country, may be substantially to lessen com­ and views with respect to the proposed transaction. petition, or to tend to create a monopoly, or which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

462 FEDERAL RESERVE BULLETIN □ MAY 1970 in any other manner would be restraint of trade, Springfield Bank on Union Bank for management unless the Board finds that the anticompetitive strength, it does not appear that meaningful exist­ effects of the proposed transaction are clearly out­ ing competition will be eliminated, or potential weighed in the public interest by the probable effect competition foreclosed, by consummation of Ap­ of the transaction in meeting the convenience and plicant’s proposal. needs of the communities to be served. In each On the basis of the foregoing, the Board con­ case, the Board is required to take into considera­ cludes that consummation of the proposal would tion the financial and managerial resources and not result in a monopoly or be in furtherance of future prospects of the bank holding company and any combination, conspiracy or attempt to monop­ the banks concerned, and the convenience and olize the business of banking in any part of the needs of the communities to be served. United States and would not restrain trade, sub­ Competitive effect of the proposed transaction. stantially lessen competition, or tend to create a The 10 largest banking organizations in Missouri monopoly in any section of the country. control 39 per cent of the deposits held by all com­ Financial and managerial resources and future mercial banks in the State.1 Upon consummation prospects. Applicant was recently organized and of its proposal, Applicant’s two subsidiary banks has not engaged in any business activites. The fi­ would hold aggregate deposits of about $90 million, nancial condition of Applicant and its two proposed representing less than 1 per cent of the deposits in subsidiaries is satisfactory, their management is the State. It would not rank among the 10 largest competent, and their prospects (which in the case banking organizations in the State. of Applicant are dependent upon those of its pro­ Applicant’s proposed lead bank is The Union posed subsidiaries) appear favorable. National Bank of Springfield, Springfield, Missouri, Considerations relating to the banking factors the largest bank in Greene County, with $89.6 mil­ are consistent with approval of the application. lion deposits, representing 35 per cent of the deposits Convenience and needs of the communities in­ in the county. Union Bank’s share of deposits in the volved. Springfield (population 121,000), the third Greene County market has declined from 41 per largest city in the State and the seat of Greene cent in 1965. The bank faces substantial competi­ County, Missouri, is located in the southwest part tion from other banks located in Springfield (the of the State, about 150 miles southeast of Kansas second largest bank, a subsidiary of the State’s City and 225 miles southwest of St. Louis. Spring­ largest bank holding company, controls 26 per cent field is located in the “Heart of the Ozarks” and of the deposits in the market; the third, fifth, and is a tourist center as well as the hub of an important seventh largest banks, which are members of a industrial area. family-owned chain, control 21 per cent) and from Applicant states that approval of its proposal four other banks in the Greene County market would result in advantages, primarily to customers which are outside of Springfield. of Springfield Bank, in the nature of trust services, The other proposed subsidiary, Springfield Na­ larger loan capability, and computer service. Al­ tional Bank, is a newly chartered bank (opened though it appears that the community’s needs for for business April 8, 1970) also located in Spring­ banking services are being adequately met, and field, 5.4 miles southeast of the main office of that, to a large extent, the services mentioned by Union Bank. Springfield Bank, which was organized Applicant could be provided within the existing principally by directors of Union Bank, serves an affiliate relationship, consummation of the proposal area wholly within the area served by Union Bank. would facilitate cooperation between the banks However, because of the nature of the affiliation which would benefit the public. which exists between the two banks, they are not Considerations relating to the convenience and competitive alternatives. In addition to the fact needs of the community served by the proposed that over 65 per cent of the shares of both banks subsidiaries lend some weight in favor of approval are commonly owned, all of the directors of of the application. Springfield Bank are directors of Union Bank. In Summary and conclusion. On the basis of all the view of the nature and origins of the relationship relevant facts contained in the record, and in the between the two banks, and the dependence of light of the factors set forth in section 3(c) of the Act, it is the Board’s judgment that the proposed XA11 banking data are as of June 30, 1969, and include all bank holding company formations and acquisitions transaction would be in the public interest and that approved by the Board to date. the application should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 463 BRENTON BANKS, INC., lion in deposits, which represent 2.7 per cent of DES MOINES, IOWA the total deposits for the State. (All banking data are as of June 30, 1969, adjusted to reflect bank In the matter of the application of Brenton holding company formations and acquisitions ap­ Banks, Inc., Des Moines, Iowa, for approval of proved by the Board to date.) One of Applicant’s acquisition of 98 per cent of the voting shares of subsidiary banks has operated a limited-service Northwest Brenton Bank and Trust Company, Ur­ office in Urbandale since 1959. Iowa banking laws bandale, Iowa, a proposed new bank. prohibit the continued operation of this branch in the event that any other bank is established with headquarters in the town. Applicant proposes to Order Approving Acquisition of Bank Stock establish and acquire a new full-service bank in by Bank Holding Company expanded quarters at the present location of its subsidiary’s branch, and to continue operations There has come before the Board of Governors, of the latter. Consummation of the proposal would pursuant to section 3(a)(3) of the Banking Hold­ not eliminate present competition or foreclose po­ ing Company Act of 1956 (12 U.S.C. 1842(a) tential competition, and it does not appear that it (3)) and section 222.3(a) of Federal Reserve would adversely affect present or potential com­ Regulation Y (12 CFR 222.3(a)), an application petitors in the area involved. by Brenton Banks, Inc., Des Moines, Iowa (“Ap­ On the basis of the foregoing, the Board con­ plicant”), a registered bank holding company, for cludes that consummation of Applicant’s proposal the Board’s prior approval of the acquisition of would not have an adverse effect on competition in 98 per cent of the voting shares of Northwest any relevant area. The banking factors, as applied Brenton Bank and Trust Company, Urbandale, to the facts of record, are consistent with approval Iowa, a proposed new bank. of the application. Consummation of the proposal As required by section 3(b) of the Act, the would afford the Urbandale area the convenience Board gave written notice of receipt of the appli­ of complete banking services, and that considera­ cation to the Superintendent of the Department tion weighs in favor of approval action. It is the of Banking for the State of Iowa and requested Board’s judgment that the proposed transaction his views and recommendation. The Superintend­ would be in the public interest, and that the appli­ ent, having tentatively approved the chartering of cation should be approved. the new bank with knowledge that it was proposed that the bank became a subsidiary of Applicant, It is hereby ordered, for the reasons set forth above, that said application be and hereby is ap­ did not submit comments to the Board on the proved, provided that the acquisition so approved application. shall not be consummated (a) before the thirtieth Notice of receipt of the application was pub­ calendar day following the date of this Order or lished in the Federal Register on February 19, (b) later than three months after the date of this 1970 (35 Federal Register 3190), which pro­ Order, unless such period is extended for good vided an opportunity for interested persons to cause by the Board, or by the Federal Reserve submit comments and views with respect to the Bank of Chicago pursuant to delegated authority. proposed acquisition. A copy of the application By order of the Board of Governors, April 29, was forwarded to the United States Department 1970. of Justice for its consideration. The time for filing comments and views has expired and all those Voting for this action: Chairman Burns and Gov­ ernors Robertson, Maisel, and Brimmer. Absent and received have been considered by the Board. not voting: Governors Mitchell, Daane, and Sherrill. The Board has considered the application in the (Signed) K enneth A. Kenyon, light of the factors set forth in section 3(c) of the Deputy Secretary. Act, including the effect of the proposed acquisi­ [seal] tion on competition, the financial and managerial resources of the Applicant and the banks con­ FIRST FLORIDA BANCORPORATION, cerned, and the convenience and needs of the TAMPA, FLORIDA communities to be served, and finds that: Applicant, the second largest bank holding com­ In the matter of the application of First Florida pany and the third largest banking organization Bancorporation, Tampa, Florida, for approval of in Iowa, has 14 subsidiary banks with $156 mil­ acquisition of 80 per cent or more of the voting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

464 FEDERAL RESERVE BULLETIN □ MAY 1970 shares of Liberty National Bank of St. Petersburg, or competitive effectiveness of any other bank St. Petersburg, Florida. would be adversely affected. Based upon the foregoing, the Board con­ cludes that consummation of the proposed acqui­ Order Approving Acquisition of Bank Stock sition would not have an adverse effect on com­ by Bank Holding Company petition in any relevant market. The financial con­ There has come before the Board of Governors, dition and management of Applicant’s group and pursuant to section 3(a)(3) of the Bank Holding Bank are satisfactory, and the prospects for each Company Act of 1956 (12 U.S.C. 1842(a)(3)) appear favorable. Considerations concerning com­ and section 222.3(a) of Federal Reserve Regula­ munity convenience and needs weigh in favor of tion Y (12 CFR 222.3(a)), an application by approval of the application, because of the ex­ First Florida Bancorporation, Tampa, Florida panded services that would be made available by (“Applicant”), a registered bank holding com­ Bank, one of the smallest banks in St. Petersburg. pany, for the Board’s prior approval of the ac­ It is the Board’s judgment that the proposed trans­ quisition of 80 per cent or more of the voting action would be in the public interest, and that shares of Liberty National Bank of St. Petersburg, the application should be approved. St. Petersburg, Florida (“Bank”). It is hereby ordered, for the reasons set forth As required by section 3(b) of the Act, the above, that said application be and hereby is ap­ Board gave written notice of receipt of the appli­ proved, provided that the acquisition so approved cation to the Comptroller of the Currency and re­ shall not be consummated (a) before the thirtieth quested his views and recommendation. The Comp­ calendar day following the date of this Order or troller recommended approval of the application. (b) later than three months after the date of this Order unless such period is extended for good cause Notice of receipt of the application was pub­ by the Board, or by the Federal Reserve Bank of lished in the Federal Register on March 6, 1970 Atlanta pursuant to delegated authority. (35 Federal Register 4231), providing an oppor­ By order of the Board of Governors, April 29, tunity for interested persons to submit comments 1970. and views with respect to the proposed transac­ tion. A copy of the application was forwarded to Voting for this action: Chairman Burns and Gov­ ernors Robertson, Maisel, and Brimmer. Absent and the United States Department of Justice for its not voting: Governors Mitchell, Daane, and Sherrill. consideration. The time for filing comments and (Signed) K enneth A. Kenyon, views has expired and all those received have been Deputy Secretary. considered by the Board. [seal] The Board has considered the application in the light of the factors set forth in section 3(c) of the DACOTAH BANK HOLDING CO., Act including the effect of the proposed acquisi­ ABERDEEN, SOUTH DAKOTA tion on competition, the financial and managerial resources of the Applicant and the banks con­ In the matter of the application of Dacotah Bank cerned, and the convenience and needs of the com­ Holding Co., Aberdeen, South Dakota, for ap­ munities to be served and finds that: proval of acquisition of 63.36 per cent or more of Applicant presently controls 16 banks which the voting shares of Bank of Lemmon, Lemmon, hold deposits of $333 million, representing 2.9 South Dakota. per cent of total deposits held by Florida’s com­ mercial banks. Its share of State deposits would Order Approving Acquisition of Bank Stock increase to 3 per cent as a result of the acquisition by Bank Holding Company of Bank ($16 million deposits), and Applicant would remain the sixth largest banking organiza­ There has come before the Board of Governors, tion in the State. There is no significant competi­ pursuant to section 3(a)(3) of the Bank Holding tion between Bank and Applicant’s present sub­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) sidiary banks, the nearest office of which is located and section 222.3(a) of Federal Reserve Regula­ in Tampa, 21 miles northeast of Bank. It does not tion Y (12 CFR 222.3(a)), an application by appear that consummation of this proposal would Dacotah Bank Holding Co., Aberdeen, South Da­ eliminate existing competition or foreclose sig­ kota (“Applicant”), for the Board’s prior ap­ nificant potential competition, or that the viability proval of the acquisition of 63.36 per cent or more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 465 of the voting shares of Bank of Lemmon, Lemmon, of these considerations weigh in favor of approval South Dakota (“Bank”). of the application. It is the Board’s judgment that As required by section 3(b) of the Act, the the proposed transaction would be in the public Board gave written notice of receipt of the appli­ interest, and that the application should be ap­ cation to the Superintendent of Banks of the State proved. of South Dakota, and requested his views and It is hereby ordered, for the reasons set forth recommendation. The Superintendent recom­ above, that said application be and hereby is ap­ mended approval of the application. proved, provided that the acquisition so approved Notice of receipt of the application was pub­ shall not be consummated (a) before the thirtieth lished in the Federal Register on October 16, calendar day following the date of this Order or 1969 (34 Federal Register 16565), providing an (b) later than three months after the date of this opportunity for interested persons to submit com­ Order, unless such period is extended for good cause ments and views with respect to the proposal. A by the Board, or by the Federal Reserve Bank of copy of the application was forwarded to the Minneapolis pursuant to delegated authority. United States Department of Justice for its con­ By order of the Board of Governors, April 29, sideration. Time for filing comments and views has 1970. expired and all those received have been considered Voting for this action: Chairman Bums and Gov­ by the Board. ernors Robertson, Maisel, and Brimmer. Absent and not voting: Governors Mitchell, Daane, and Sherrill. The Board has considered the application in the (Signed) K enneth A. Kenyon, light of the factors set forth in section 3(c) of the Deputy Secretary. Act, including the effect of the proposed acquisition [seal] on competition, the financial and managerial re­ sources and future prospects of the Applicant and the banks concerned, and the convenience and HUNTINGTON BANCSHARES needs of the communities to be served, and finds INCORPORATED, that: COLUMBUS, OHIO Applicant, the third largest bank holding com­ pany and fourth largest banking organization in In the matter of the application of Huntington South Dakota, controls four banks with $32 mil­ Bancshares Incorporated, Columbus, Ohio, for ap­ lion in deposits, representing 2.4 per cent of State proval of acquisition of 80 per cent or more of the deposits. (Banking data are as of June 30, 1969, voting shares of The Bank of Wood County Com­ adjusted to reflect holding company formations pany, Bowling Green, Ohio. and acqusitions approved by the Board to date.) Acquisition of Bank ($7 million deposits) would Order Approving Acquisition of Bank Stock not significantly increase Applicant’s control of by Bank Holding Company State deposits, or change its ranking in relation to other banking organizations in South Dakota. Bank There has come before the Board of Governors, is the smaller of two banks in Lemmon (popula­ pursuant to section 3(a)(3) of the Bank Holding tion 2,400), and the third largest of four banks Company Act of 1956 (12 U.S.C. 1842(a)(3)), located within a 30 mile radius thereof. The closest and section 222.3(a) of Federal Reserve Regula­ of Applicant’s present subsidiaries is located about tion Y (12 CFR 222.3(a)), the application of 100 miles from Lemmon. It does not appear that Huntington Bancshares Incorporated, Columbus, present competition would be eliminated, or sig­ Ohio (“Applicant”), a registered bank holding nificant potential competition foreclosed, as a result company, for the Board’s prior approval of the of the proposed acquisition, or that there would acquisition of 80 per cent or more of the voting be undue adverse effects on any competing bank. shares of The Bank of Wood County Company, Based upon the foregoing, the Board concludes Bowling Green, Ohio (“Bank”). that consummation of the proposed acquisition As required by section 3(b) of the Act, the would not have an adverse effect on competition Board gave written notice of receipt of the appli­ in any relevant area. Prospects of Bank would be cation to the Ohio Superintendent of Banks and enhanced by the proposal, and the Lemmon com­ requested his views and recommendation. The munity would benefit from expanded services Superintendent recommended approval of the ap­ which Applicant proposes to institute at Bank; both plication. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

466 FEDERAL RESERVE BULLETIN □ MAY 1970 Notice of receipt of the application was published endar day following the date of this Order or (b) in the Federal Register on March 10, 1970 (35 later than three months after the date of this Federal Register 4312), providing an opportunity Order, unless such time be extended for good for interested persons to submit comments and cause by the Board, or by the Federal Reserve Bank views with respect to the proposal. A copy of the of Cleveland pursuant to delegated authority. application was forwarded to the Department of By order of the Board of Governors, May 1, Justice for its consideration. Time for filing com­ 1970. ments and views has expired and all those received Voting for this action: Vice Chairman Robertson and Governors Maisel, Brimmer, and Sherrill. Absent and have been considered by the Board. not voting: Chairman Bums and Governors Mitchell The Board has considered the application in the and Daane. light of the factors set forth in section 3(c) of the (Signed) K enneth A. Kenyon, Act, including the effect of the proposed acquisi­ Deputy Secretary. tion on competition, the financial and managerial [seal] resources and future prospects of the Applicant and the banks concerned, and the convenience In the matter of the application of Huntington and needs of the communities to be served, and Bancshares Incorporated, Columbus, Ohio, for ap­ finds that: proval of acquisition of 80 per cent or more of the Applicant controls four banks (26 offices) with voting shares of Lagonda National Bank of Spring­ total deposits of $505 million, representing 2.6 field, Springfield, Ohio. per cent of the total bank deposits in the State of Ohio. (All banking data are as of June 30, 1969, Order Approving Acquisition of Bank Stock adjusted to reflect holding company formations and by Bank Holding Company acquisitions approved by the Board to date.) Upon acquisition of Bank ($41 million deposits), Appli­ There has come before the Board of Governors, cant’s share of State deposits would increase to 2.8 pursuant to section 3(a)(3) of the Bank Holding per cent. Applicant has no subsidiary in Wood Company Act of 1956 (12 U.S.C. 1842(a)(3)), County, in which Bank is located; its closest sub­ and section 222.3(a) of Federal Reserve Regula­ sidiary is located about 90 miles southeast of tion Y (12 CFR 222.3(a)), the application of Bowling Green. Although Bank is the larger of two Huntington Bancshares Incorporated, Columbus, banks in Bowling Green, and the largest of 11 Ohio (“Applicant”), a registered bank holding banks in Wood County, it has been conservatively company, for the Board’s prior approval of the operated, and affiliation with Applicant would acquisition of 80 per cent or more of the voting likely increase its competitive effectiveness. Con­ shares of Lagonda National Bank of Springfield, summation of the proposed acquisition would not Springfield, Ohio (“Bank”). eliminate existing competition or foreclose sig­ As required by section 3(b) of the Act, the nificant potential competition, and would not have Board gave written notice of receipt of the appli­ undue adverse effects on the viability or competi­ cation to the Comptroller of the Currency and tive effectiveness of any competing bank. requested his vews and recommendation. The Based upon the foregoing, the Board concludes Comptroller recommended approval of the appli­ that consummation of the proposed acquisition cation. would not have an adverse effect on competition Notice of receipt of the application was pub­ in any relevant area. The banking factors, as ap­ lished in the Federal Register on March 25, 1970 plied to the facts of record, are consistent with ap­ (35 Federal Register 5057), providing an oppor­ proval of the application, and considerations relat­ tunity for interested persons to submit comments ing to the convenience and needs of the communi­ and views with respect to the proposal. A copy of ties to be served lend some weight in support of the application was forwarded to the Department approval. It is the Board’s judgment that the pro­ of Justice for its consideration. Time for filing posed transaction would be in the public interest, comments and views has expired and all those and that the application should be approved. received have been considered by the Board. It is hereby ordered, for the reasons set forth The Board has considered the application in above, that said application be and hereby is ap­ the light of the factors set forth in section 3(c) proved, provided that the action so approved shall of the Act, including the effect of the proposed ac­ not be consummated (a) before the thirtieth cal­ quisition on competition, the financial and man­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 467 agerial resources and future prospects of the COMMERCE BANCSHARES, INC., Applicant and the banks concerned, and the KANSAS CITY, MISSOURI convenience and needs of the communities to be served, and finds that: In the matter of the application of Commerce Applicant controls five banks (30 offices) with Bancshares, Inc., Kansas City, Missouri, for ap­ total deposits of $546 million, representing 2.8 proval of acquisition of more than 80 per cent of per cent of the total bank deposits in the State of the voting shares of American Trust Company of Ohio. (All banking data are as of June 30, 1969, Hannibal, Hannibal, Missouri. adjusted to reflect holding company formations and acquisitions approved by the Board to date, Order Approving Acquisition of Bank Stock including the proposal involving The Bank of by Bank Holding Company Wood County Company which the Board, under separate Order, has approved today.) Upon ac­ There has come before the Board of Governors, quisition of Bank ($42 million deposits). Appli­ pursuant to section 3(a)(3) of the Bank Holding cant’s share of State deposits would increase to 3 Company Act of 1956 (12 U.S.C. 1842(a)(3)) per cent. Applicant has no subsidiary in Clark and section 222.3(a) of Federal Reserve Regulation County, in which Bank is located, or in any ad­ Y (12 CFR 222.3(a)), an application by Com­ jacent county; its closest subsidiary is located about merce Bancshares, Inc., Kansas City, Missouri 38 miles from Springfield. Consummation of the (“Applicant”), a registered bank holding company, proposed acquisition would not eliminate exist­ for the Board’s prior approval of the acquisition of ing competition or foreclose significant potential more than 80 per cent of the voting shares of Amer­ competition, and would not have undue adverse ican Trust Company of Hannibal, Hannibal, Mis­ effects on the viability or competitive effectiveness souri (“Bank”). of any competing bank. As required by section 3(b) of the Act, the Based upon the foregoing, the Board concludes Board gave written notice of receipt of the appli­ that consummation of the proposed acquisition cation to the Commissioner of Finance of the State would not have an adverse effect on competition of Missouri, and requested his views and recom­ in any relevant area. The banking factors, as ap­ mendation. The Commissioner indicated that he had plied to the facts of record, are consistent with ap­ no objection to approval of the application. proval of the appliciation, and considerations Notice of receipt of the application was pub­ relating to the convenience and needs of the com­ lished in the Federal Register on January 24, 1970 munities to be served lend some weight in support (35 Federal Register 1027), providing an oppor­ of approval. It is the Board’s judgment that the tunity for interested persons to submit comments proposed transaction would be in the public inter­ and views with respect to the proposal. A copy of est, and that the application should be approved. the application was forwarded to the United States It is hereby ordered, for the reasons set forth Department of Justice for its consideration. Time above, that said application be and hereby is ap­ for filing comments has expired and all those re­ proved, provided that the action so approved shall ceived have been considered by the Board. not be consummated (a) before the thirtieth cal­ The Board has considered the application in the endar day following the date of this Order or (b) light of the factors set forth in section 3(c) of the later than three months after the date of this Order, Act, including the effect of the proposed acquisition unless such time be extended for good cause by the on competition, the financial and managerial re­ Board, or by the Federal Reserve Bank of Cleve­ sources and future prospects of the Applicant and land pursuant to delegated authority. the banks concerned, and the convenience and By order of the Board of Governors, May 1, needs of the communities to be served. Upon such 1970. consideration, the Board finds that: Voting for this action: Vice Chariman Robertson and Applicant has 10 subsidiary banks with $700 Governors Maisel, Brimmer, and Sherrill. Absent and million in deposits, and is the largest bank holding not voting: Chairman Burns and Governors Mitchell company and the third largest banking organiza­ and Daane. tion in the State of Missouri. (All banking data are (Signed) K enneth A. Kenyon, as of June 30, 1969, adjusted to reflect holding Deputy Secretary. company formations and acquisitions approved by [seal] the Board to date. Not reflected in the foregoing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

468 FEDERAL RESERVE BULLETIN □ MAY 1970 figures is the Board’s approval today, under separate Company Act of 1956 (12 U.S.C. 1842(a)(3)) Order, of the acquisition of Tipton Farmers Bank, and section 222.3(a) of Federal Reserve Regula­ Tipton, Missouri (deposits $3.5 million)). Bank, tion Y (12 CFR 222.3(a)), an application by with deposits of $7.6 million, is the smallest of Commerce Bancshares, Inc., Kansas City, Missouri three banks in Hannibal and of four banks in (“Applicant”), a registered bank holding company, Marion County, and is located about 60 miles from for the Board’s prior approval of the acquisition of the nearest of Applicant’s present subsidiaries. It more than 80 per cent of the voting shares of does not appear that existing competition would be Tipton Farmers Bank, Tipton, Missouri (“Bank”). eliminated, or significant potential competition fore­ As required by section 3(b) of the Act, the closed, by consummation of Applicant’s proposal, Board gave written notice of receipt of the applica­ or that there would be undue adverse effects on tion to the Commissioner of Finance of the State of other banks in the area involved. Missouri, and requested his views and recom­ Based upon the foregoing, the Board concludes mendation. The Commissioner commented that he that consummation of the proposed acquisition viewed the proposal as a progressive step for bank­ would not adversely affect competition in any ing in the area involved. relevant area. The banking factors lend some sup­ Notice of receipt of the application was pub­ port for approval of the application, in that it will lished in the Federal Register on December 18, resolve a management succession problem at Bank, 1969 (34 Federal Register 19839), providing an result in improved asset administration, and gen­ opportunity for interested persons to submit com­ erally enhance Bank’s prospects. Applicant intends ments and views with respect to the proposal. A to expand the services offered by Bank and improve copy of the application was forwarded to the its physical facilities, which should enable it to bet­ United States Department of Justice for its con­ ter serve its community. It is the Board’s judgment sideration. Time for filing comments has expired that consummation of the proposed acquisition and all those received have been considered by the would be in the public interest, and that the applica­ Board. tion should be approved. The Board has considered the application in the It is hereby ordered that, on the basis of the light of the factors set forth in section 3(c) of the Board’s findings, summarized above, said applica­ Act, including the effect of the proposed acquisition tion be and hereby is approved, provided that the on competition, the financial and managerial re­ acquisition so approved shall not be consummated sources and future prospects of the Applicant and (a) before the thirtieth calendar day following the the banks concerned, and the convenience and date of this Order or (b) later than three months needs of the communities to be served. Upon such after the date of this Order, unless such period is consideration, the Board finds that: extended for good cause by the Board, or by the Applicant has 10 subsidiary banks with $700 Federal Reserve Bank of Kansas City pursuant to million in deposits, and is the largest bank holding delegated authority. company and the third largest banking organization By order of the Board of Governors, May 6, in the State of Missouri. (All banking data are as 1970. of June 30, 1969, adjusted to reflect holding com­ Voting for this action: Chairman Burns and Gov­ pany formations and acquisitions approved by the ernors Robertson, Mitchell, Daane, Maisel, Brimmer, and Sherrill. Board to date. Not reflected in the foregoing figures (Signed) K enneth A. Kenyon, is the Board’s approval today, under separate Or­ [seal] Deputy Secretary. der, of the acquisition of American Trust Company of Hannibal, Hannibal, Missouri (deposits $7.6 In the matter of the application of Commerce million)). Bank, with deposits of $3.5 million, is Bancshares, Inc., Kansas City, Missouri, for ap­ the only bank located in Tipton, and ranks third proval of acquisition of more than 80 per cent of in size among five banks in Moniteau County. Ap­ the voting shares of Tipton Farmers Bank, Tipton, plicant’s closest subsidiary is located about 56 miles Missouri. from Tipton. It does not appear that existing com­ petition would be eliminated, or significant potential Order Approving Acquisition of Bank Stock competition foreclosed, by consummation of Appli­ by Bank Holding Company cant’s proposal, or that there would be undue ad­ There has come before the Board of Governors, verse effects on any other bank in the area involved. pursuant to section 3(a)(3) of the Bank Holding Based upon the foregoing, the Board concludes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 469 that consummation of the proposed acquisition pany Act of 1956 (12 U.S.C. § 1841(a)), has would not adversely affect competition in any filed requests for determinations by the Board of relevant area. Banking factors, as related to the Governors of the Federal Reserve System that the facts of record, are consistent with approval of the activities of five nonbank companies, Citizens Agri­ application. Bank has pursued very conservative cultural Credit Corporation, F & M Agricultural lending policies and has a limited service offering; Credit Corporation, Citizens Insurance Agency, it does not presently offer time and savings deposit Inc., Roslyn Insurance Agency, Inc., and Security services. Affiliation with Applicant would result in Insurance Agency, Inc., are of the kind described a liberalization of lending policies and an expansion in section 4(c)(8) of the Act (12 U.S.C. § 1843 of the services offered, and should increase Bank’s (c)(8)) and section 222.4(a) of Federal Reserve service to the community. It is the Board’s judg­ Regulation Y (12 CFR § 222.4(a)) so as to make ment that consummation of the proposed acquisi­ it unnecessary for the prohibitions of section 4(a) tion would be in the public interest, and that the of the Act, respecting the ownership or control of application should be approved. voting shares of nonbanking companies, to apply It is hereby ordered that, on the basis of the in order to carry out the purposes of the Act. Board’s findings, summarized above, said applica­ Pursuant to the requirements of section 4(c)(8) tion be and hereby is approved, provided that the of the Act, and in accordance with the provisions acquisition so approved shall not be consummated of sections 222.4(a) and 222.5(a) of Regulation (a) before the thirtieth calendar day following the Y (12 CFR §§ 222.4(a) and 222.5(a)), a hearing date of this Order or (b) later than three months was held on these matters on August 12, 1969. On after the date of this Order, unless such period is April 3, 1970, the hearing examiner filed his report extended for good cause by the Board, or by the and recommended decision, a copy of which is ap­ Federal Reserve Bank of Kansas City pursuant to pended hereto, wherein he recommended that the delegated authority. Board make the requested determinations. The time By order of the Board of Governors, May 6, for filing exceptions to the report and recommended 1970. decision has expired, and none has been filed. The Voting for this action: Chairman Burns and Gover­ findings of fact, conclusions of law, and recom­ nors Robertson, Mitchell, Daane, Maisel, Brimmer, mendations of the hearing examiner are adopted, and Sherrill. and on the basis of the entire record, (Signed) K enneth A. Kenyon, It is hereby ordered, that the activities of each [seal] Deputy Secretary. of the nonbanking companies named hereinabove are determined to be so closely related to the busi­ ORDERS UNDER SECTION 4 OF THE ness of banking and of managing or controlling BANK HOLDING COMPANY ACT banks as to be a proper incident thereto and as to make it unnecessary for the prohibitions of section DACOTAH BANK HOLDING COMPANY, 4(a) of the Bank Holding Company Act of 1956 ABERDEEN, SOUTH DAKOTA to apply in order to carry out the purposes of that In the matter of the applications, pursuant to Act; provided, however, that the determination, section 4(c)(8) of the Bank Holding Company Act with respect to each such company, is subject to of 1956, by Dacotah Bank Holding Company, revocation by the Board if the facts upon which it Aberdeen, South Dakota, for determinations as to is based change in any material respect. Citizens Agricultural Credit Corporation, F & M By order of the General Counsel of the Board of Agricultural Credit Corporation, Citizens Insurance Governors, April 29, 1970, acting on behalf of the Agency, Inc., Roslyn Insurance Agency, Inc., and Board pursuant to delegated authority (12 CFR § Security Insurance Agency, Inc., nonbank com­ 265.2(b)(2)). panies. DOCKET NOS. BHC— 92, BHC— 93, (Signed) K enneth A. Kenyon, BHC— 94, BHC— 95, BHC— 96. Deputy Secretary. [seal] Order Making Determinations Under Bank Holding Compay Act Hearing Examiner’s Report and Recommended Decision Dacotah Bank Holding Company, Aberdeen, South Dakota, a bank holding company within the Dacotah Bank Holding Company (Applicant), a meaning of section 2(a) of the Bank Holding Com­ bank holding company under section 2(a) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

470 FEDERAL RESERVE BULLETIN □ MAY 1970 Bank Holding Company Act of 1956, as amended,1 of which are located in the northeast quadrant of (Act) seeks a determination by the Board of Gov­ South Dakota: ernors of the Federal Reserve System (Board) Security Bank, Webster, South Dakota, which also that the activities of its proposed non-banking sub­ has a branch office at Roslyn, South Dakota sidiaries are or are to be of the kind described in Farmers & Merchants Bank, Aberdeen, South Dakota section 4(c)(8) of the Act,2 so as to make it un­ Citizens Bank of Mobridge, Mobridge, South necessary for the prohibitions of section 4(a) of Dakota the Act3 to apply in order to carry out the purposes Citizens State Bank, Clark, South Dakota, with branch offices at Bradley, Vienna and Willow of the Act. Lake, South Dakota. Pursuant to Notice of Request and Order for (Applicant’s Exhibit 1; Tr. 14, 15, 16-17). Hearing, published in the Federal Register on July 3. In this proceeding, Dacotah Bank Holding 11, 1969,4 this matter was heard by the under­ Company seeks a determination by the Board of signed, a duly designated Hearing Examiner,5 on Governors that it may retain the voting shares August 12, 1969, at Minneapolis, Minnesota. The which it presently owns or acquire voting shares in Applicant and the Board, the latter in a non-adverthe following corporations: sary capacity, were represented at the hearing by counsel and were afforded full opportunity to be Citizens Agricultural Credit Corporation heard, to examine and cross-examine witnesses, to Mobridge, South Dakota F & M Agricultural Credit Corporation introduce evidence, to file proposed findings of fact Aberdeen, South Dakota and conclusions of law in support thereof. The Citizens Insurance Agency, Inc. Applicant’s proposed findings of fact, conclusions Clark, Bradley, Vienna and Willow* Lake, South Dakota of law, and supporting brief were received on Sep­ Roslyn Insurance Agency, Inc. tember 8, 1969. Comments of Board counsel were Roslyn, South Dakota Security Insurance Agency, Inc. received on September 16, 1969. Webster, South Dakota Based upon a consideration of the complete record, and in light of prior decisions and orders of (Board’s Exhibit 1 and 1-A; Tr. 17, 21). the Board, it is concluded that the Applicant is en­ 4. Each of Applicant’s subsidiary banks had titled to a favorable determination under section been engaged in the general insurance business, 4(c)(8) of the Act. Findings of fact and conclu­ through an affiliated organization, for a number of sions of law follow:6 years prior to the time that Applicant acquired that bank. In this proceeding, Applicant does not seek to establish anything new. Applicant merely Findings of Fact seeks the right to continue the activities which had been engaged in at these banks before they became Dacotah Bank Holding Company subsidiaries * of Dacotah Bank Holding Company. 1. Dacotah Bank Holding Company was or­ (Tr. 13-15, 24, 25, 49, 50, 71-73, 91, 119). ganized in 1964. From 1964 to 1969, Dacotah Bank Holding Company was a so-called “one Area Practice bank” holding company. By order dated March 10, 1969, the Board of Governors approved the ap­ 5. It is customary for commercial banks in the plication of Dacotah Bank Holding Company to State of South Dakota to engage in the general become a registered bank holding company under insurance business, either directly or through af­ the Bank Holding Company Act of 1956. The filiated organizations. The only exceptions are na­ total assets of Dacotah Bank Holding Company, tional banks located in cities having populations in including all of its subsidiary banks, is approx­ excess of 5,000. However, some national banks, imately $36 million. (Applicant’s Exhibit 2; Tr. which are precluded from engaging in the general 13, 14) insurance business at their main offices, do engage 2. Dacotah Bank Holding Company owns con­ in the insurance business through branches located trolling stock interests in the following banks, all in communities having less than 5,000 persons. As 1 12 U.S.C. 1841(a) of December 31, 1968, there were 248 banking 212 U.S.C. 1843(c)(8) offices in South Dakota. Of these, all but 31 were 3 12 U.S.C. 1843(a) engaged in the general insurance business, directly 4 34 Fed. Reg. 11507 5 Board’s Exhibit 2 or through affiliated organizations. (Applicant’s Ex­ 6 Applicant’s proposed findings of facts adopted. hibit 6; Tr. 30-35). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 471 6. From the viewpoint of service to the com­ Mobridge and other commercial banks in the Mo­ munity, it is important that banks engage in the bridge area, it is important that Citizens Agricul­ general insurance business. Many banks function tural Credit Corporation be permitted to engage in in small agricultural communities, and competent the general insurance business. (Applicantt’s Ex­ insurance services would not be available in these hibit 33; Tr. 94-97, 99). communities if bankers did not provide these serv­ 12. Mobridge, South Dakota has a population of ices. The general insurance business is important to slightly less than 5,000. The total footings of Cit­ the banks themselves because it permits the banker izens Bank of Mobridge are slightly in excess of to be assured that the loan collateral is covered by $7.7 million. Citizens Agricultural Credit Corpora­ insurance, and because insurance business provides tion, working in conjunction with Citizens Bank of an income which is important to the growth of the Mobridge, provides an important service for the bank and the support of adequate banking quarters Mobridge community. The association of the insur­ and equipment. (Tr. 35). ance agency and the bank has made possible the employment of trained and qualified persons to Citizens Agricultural Credit Corporation serve the insurance needs of the community. The insurance agency has contributed materially to the 7. Citizens Agricultural Credit Corporation was establishment of a new banking house for Citizens incorporated in 1959. It maintains its offices in the Bank of Mobridge, which was occupied in 1967. banking house of the Citizens Bank of Mobridge, A building of the size and quality which now Mobridge, South Dakota. Its sole business is that houses the bank could not have been justified were of a general insurance agency. (Applicant’s Exhibit it not for the insurance agency. (Tr. 94, 98-101). 25; Tr. 19, 90). 8. Citizens Agricultural Credit Corporation has F & M Agricultural Credit Corporation no employees of its own. All of its activities are performed by employees of Citizens Bank of Mo­ 13. F & M Agricultural Credit Corporation was bridge. Citizens Agricultural Credit Corporation incorporated in 1960. It maintains its offices in the pays a fee to Citizens Bank of Mobridge for space banking house of the Farmers & Merchants Bank, in the banking house, and for the services of bank Aberdeen, South Dakota. Its sole business activities employees. (Tr. 90). are general insurance, and agricultural loans. (Ap­ 9. Citizens Agricultural Credit Corporation is plicant’s Exhibit 34; Tr. 18, 109-110). engaged in the general insurance business. Its major 14. Farmers & Merchants Bank began opera­ lines are fire and casualty insurance, and hospi­ tions in 1955. Shortly thereafter, the bank began talization insurance. (Applicant’s Exhibit 30). general insurance operations. When the F & M 10. More than 90 per cent of the premium vol­ Agricultural Credit Corporation was incorporated ume of Citizens Agricultural Credit Corporation is in 1960, it took over that insurance function. (Tr. represented by insurance which is written on the 24, 25). basis of sales made in the banking house of Citizens 15. F & M Agricultural Credit Corporation has Bank of Mobridge. Approximately 80 per cent of no employees of its own. All of its activities are the policyholders of Citizens Agricultural Credit performed by employees of Farmers & Merchants Corporation are customers of Citizens Bank of Bank. F & M Agricultural Credit Corporation pays Mobridge. Approximately 34 per cent of the policy­ a fee to Farmers & Merchants Bank for space in holders are borrowing customers of Citizens Bank the banking house, and for the services of the bank of Mobridge. (Applicant’s Exhibit 31; Tr. 97-98). employees. (Tr. 110, 118, 119). Twenty-four percent of the insurance policies writ­ 16. F & M Agricultural Credit Corporation is ten contain loss payable or mortgage clauses in engaged in the general insurance business. Its prin­ favor of the Bank. (Applicant’s Exhibit 32). cipal lines of insurance are property and casualty 11. It is customary for banks in the Mobridge insurance, and health and accident insurance. (Ap­ area to engage in the general insurance business plicant’s Exhibit 39). either directly or through affiliated organizations. 17. More than 90 per cent of the insurance The Mobridge branch of the First National Bank policies sold by F & M Agricultural Credit Cor­ of Aberdeen, the only other banking office in Mo­ poration are sold in the banking house of Farmers bridge, is engaged in the general insurance business & Merchants Bank. Approximately 89 per cent of through an affiliated corporation. From the stand­ the policyholders of F & M Agricultural Credit point of competition between Citizens Bank of Corporation are customers of Farmers & Merchants Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

472 FEDERAL RESERVE BULLETIN □ MAY 1970 Bank. Approximately 70 per cent of the policy­ 22. Loans made by F & M Agricultural Credit holders are borrowing customers of Farmers & Corporation are re-discounted with the Federal Merchants Bank. (Applicant’s Exhibit 40; Tr. 114). Intermediate Credit Bank of Omaha. The loans Approximately 58 per cent of the insurance policies must be made for agricultural purposes, and the are written to secure property held as collateral to paper is re-discounted with recourse. (Tr. 120a bank loan made by Farmers & Merchants Bank. 122). During the year from July 1, 1968 through (Applicant’s Exhibit 41). June 30, 1969, F & M Agricultural Credit Cor­ 18. It is customary for banks in the Aberdeen poration had 22 borrowing customers. Of these area to engage in the general insurance business borrowing customers, 20 also had loans with either directly or through affiliated organizations. Farmers & Merchants Bank. The same lending The only banks in the area which do not engage in officers who make loans for the bank, also make the general insurance business are two national loans for F & M Agricultural Credit Corporation. banks situated in Aberdeen, which do not engage in The F & M Agricultural Credit Corporation makes the insurance business because the population of use of the same credit files that are used by Aberdeen exceeds 5,000 persons. All other banks Farmers & Merchants Bank. (Applicant’s Exhibit and banking offices in the Aberdeen area are en­ 43; Tr. 118, 119, 123-124). The normal proce­ gaged in the general insurance business (directly or dure is that the customer establishes a line of credit through affiliated organizations), including those with the bank, against which he makes periodic branches of the First National Bank of Aberdeen withdrawals in accordance with his needs. These which are situated in cities with less than 5,000 withdrawals are accumulated until they reach a population. (Applicant’s Exhibit 42; Tr. Ill, 112). sizeable level. At that time, the loan is transferred 19. Farmers & Merchants Bank is the smallest from Farmers & Merchants Bank to the F & M of the three banks in Aberdeen, having deposits Agricultural Credit Corporation. The F & M Agri­ of approximately $12.5 million. It competes against cultural Credit Corporation, in turn, re-discounts two banks which are substantially larger than it, the loans with the Federal Intermediate Credit having deposits of approximately $76 million and Bank of Omaha. (Tr. 121, 124-125). $25 million respectively. Both competitors are 23. Legal restrictions make it impractical ♦ for a owned by large holding companies, and both have commercial bank to re-discount paper with the Fed­ been in existence since the 1880’s. It is extremely eral Intermediate Credit Bank, except through the important from a competitive standpoint that the vehicle of an agricultural credit corporation. (Tr. Farmers & Merchants Bank make available insur­ 125, 126). ance services to its customers, through F & M 24. There are 26 agricultural credit corporations Agricultural Credit Corporation. (Applicant’s Ex­ in the five-state area served by the Federal Interme­ hibit 2; Tr. 112, 113). diate Credit Bank of Omaha. Of these, 18 are affili­ 20. Many of the agricultural customers of Farm­ ated with commercial banks. There are 23 agricul­ ers & Merchants Bank originally did their banking tural credit corporations in the States of Minnesota, with banks located in the smaller towns in the Wisconsin and North Dakota. Of these, 13 are Aberdeen area, and were able to purchase their affiliated with commercial banks. (Applicant’s Ex­ insurance at that bank. As their credit needs grew, hibit 44). these persons became customers of Farmers & Citizens Insurance Agency, Inc. Merchants Bank, which was a larger bank. These 25. Citizens Insurance Agency, Inc. was incor­ persons still expected to be able to purchase their porated in 1959. It is closely associated with insurance at the bank which handled their banking Citizens State Bank of Clark, and maintains its needs. The general insurance activities of F & M offices in the banking houses of that bank at Clark, Agricultural Credit Corporation help Farmers & Bradley, Vienna and Willow Lake, South Dakota. Merchants Bank meet this need. (Tr. 114). Its sole business activity is that of a general insur­ 21. F & M Agricultural Credit Corporation be­ ance agency. It also owns the building in which the gan its lending activities in the fall of 1962. At Clark office of Citizens State Bank of Clark is that time, Farmers & Merchants Bank had a rela­ housed. [*] Prior to the incorporation of Citizens tively low lending limit, and needed additional sources of credit in order to compete with the two Insurance Agency, Inc. in 1959, Citizens State Bank of Clark was engaged in the general insurance larger banks situated in Aberdeen. The lending ac­ tivities of F & M Agricultural Credit Corporation [* See section 4(c)(1)(A) of the Act; First Bank Stock helped to fulfill this need. (Tr. 37, 119). Corporation, 1959 Federal Reserve Bulletin 917, 920-21.] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 473 business, at least since 1939. (Applicant’s Exhibit Inc., were not permitted to engage in the general 45; Tr. 21, 132, 133). insurance business. (Applicant’s Exhibit 53; Tr. 26. Citizens Insurance Agency, Inc. has no em­ 139, 140). ployees of its own. All of its activities are per­ 31. The population of the communities served formed by employees of Citizens State Bank of by Citizens Insurance Agency, Inc. are: Clark, both at the main office of the bank in Clark, Clark 1,500 and at its branches at Bradley, Vienna and Willow Bradley 150 Lake. Citizens Insurance Agency, Inc. pays a fee Vienna 150 Willow Lake 475 to Citizens State Bank of Clark for space in the banking houses, and for the the services of bank From the standpoint of customers, it is important employees. (Tr. 133). that Citizens State Bank of Clark be able to offer 27. Citizens Insurance Agency, Inc. is engaged general insurance services to its affiliate, Citizens in the general insurance business. However, it does Insurance, Inc., which is the only agency in Vienna, not sell any life insurance, other than credit life in­ Willow Lake and Bradley which offers multiple surance. A high percentage of the premiums earned lines of insurance. (Tr. 132, 139). at the Clark, Bradley and Willow Lake offices of 32. The total footings of Citizens State Bank of the insurance agency are from health and accident Clark, including all of its branches, are slightly in insurance, and auto and fire insurance. (Applicant’s excess of $6,400,000. Citizens State Bank of Clark Exhibits 50, 54, 57, 60). recently occupied a new banking house at Clark, 28. At least 90 per cent of the insurance written which would not have been possible without the by Citizens Insurance Agency, Inc. is written at the earnings of the insurance agency. (Applicant’s Ex­ banking offices of Citizens State Bank of Clark, by hibit 2; Tr. 132, 139). customers who come into the bank to ask for in­ surance. (Tr. 141). Roslyn Insurance Agency, Inc. 29. The percentage of policyholders at each of the offices of Citizens Insurance Agency, Inc. who 33. Roslyn Insurance Agency, Inc. was incor­ are bank customers and bank borrowers are as porated in 1968, and succeeded to the business of follows: George Gilbertson Insurance Agency, Unincor­ Percentage of Percentage of porated, on January 1, 1969. Roslyn Insurance Policyholders Who Policyholders Who Agency maintains its offices at the Roslyn Branch, Are Bank Customers Are Bank Borrowers Security Bank, Webster, South Dakota. The Roslyn Clark 57% 20% bank, through the George Gilbertson Insurance Willow Lake 87% 32% Vienna 83% 37% Agency, was engaged in the general insurance busi­ Bradley 71% 33% ness for many years. (Applicant’s Exhibit 17; Tr. 71-73, 75). (Applicant’s Exhibits 51, 55, 58 and 61). The 34. Roslyn Insurance Agency, Inc. has no em­ percentage of insurance policies that are written ployees of its own. All of its activities are per­ to secure property held as collateral to bank loans formed by employees of the Roslyn Branch, Se­ made by the various offices of Citizens State Bank curity Bank, Webster, South Dakota. Roslyn Insur­ of Clark are as follows: ance Agency, Inc. pays a fee to the bank for space Clark 19.3% in the banking house of the branch, and for the Willow Lake 26% services of bank employees. (Tr. 73, 74). Vienna 40% 35. Roslyn Insurance Agency, Inc. is engaged in Bradley 52% the general insurance business. Its principal lines (Applicant’s Exhibits 52, 56, 59 and 62). are auto insurance, farm and fire insurance, and 30. It is customary for banks in the area sur­ health and accident insurance. (Applicant’s Ex­ rounding the communities of Clark, Bradley, hibit 21). Vienna and Willow Lake to engage in the general 36. Approximately 95 per cent of the business of insurance business either directly or through af­ Roslyn Insurance Agency, Inc. consists of insurance filiated organizations. The only other bank in Clark, sales to customers who come to the bank asking the First National Bank of Clark, offers insurance for insurance. Approximately 72 per cent of the services. From a competitive viewpoint, Citizens policyholders are bank customers, and approx­ State Bank of Clark would be at a definite dis­ imately 40 per cent of the policyholders are borrow­ advantage if its affiliate, Citizens Insurance Agency, ing customers of the bank. (Applicant’s Exhibit 22; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

474 FEDERAL RESERVE BULLETIN □ MAY 1970 Tr. 82). Approximately 34 percent of the insur­ area to engage in the general insurance business ance policies are written to secure property held as either directly or through affiliated organizations. collateral to bank loans made by the Roslyn Branch Eight banks, including one branch of a national of Security Bank, Webster. (Applicant’s Exhibit bank, compete actively with Security Bank, Web­ 23). ster. Each of these banks engages in the general 37. It is customary for banks in the Roslyn area insurance business, either directly or through an to engage in the general insurance business either affiliated organization. Security Bank, Webster (in­ directly or through affiliated organizations. The cluding its branch at Roslyn) has total footings of Roslyn Branch competes actively with six banks, approximately $8.5 million. It is important from one of which is a branch of a national bank. Each a competitive standpoint that Security Bank, Web­ of these six competitors is engaged in the general ster be able to offer general insurance services insurance business. (Applicant’s Exhibit 24; Tr. through its affiliated corporation, Security Insur­ 78-80, 81). ance Agency of Webster, South Dakota. (Appli­ 38. Roslyn has a population of approximately cant’s Exhibits 2 and 16; Tr. 54-56, 60). 250 persons and serves a predominantly rural area. 43. Webster has a population of 2,500 persons. There are no other insurance agencies in Roslyn, Security Insurance Agency offers a well-staffed the nearest other agency being at Webster, 11 miles multiple line insurance agency. It is important to away. The general insurance activities afforded by the Webster community that Security Insurance Roslyn Insurance Agency, Inc. are an important Agency of Webster, South Dakota be permitted to service to the Roslyn community. (Tr. 80-82). continue to offer insurance services. (Tr. 58, 60). Security Insurance Agency of Webster, Discussion South Dakota Section 4(a) of the Act prohibits a bank holding 39. Security Insurance Agency of Webster, company from acquiring, either directly or indi­ South Dakota was incorporated in 1960. It main­ rectly, ownership or control of any voting shares tains its offices at the main office of Security Bank, of any company which is not a bank. Excepted Webster. Its sole business is that of a general in­ from this prohibition by section 4(c)(8) are surance agency. Prior to the incorporation of “shares of any company all the activities of which Security Insurance Agency, a partnership was en­ are or are to be of a financial, fiduciary, or insur­ gaged in the general insurance business in connec­ ance nature” if the Board determines after hearing tion with the bank for many years. (Applicant’s and on the record such activities “to be so closely Exhibit 7; Tr. 49, 50). related to the business of banks or of managing 40. Security Insurance Agency has no employees or controlling banks as to be a proper incident of its own. All of its activities are performed by thereto.” employees of Security Bank, Webster. Security In­ The potential dangers envisaged in permitting surance Agency pays a fee to Security Bank, Web­ bank holding companies to own or control shares ster, for space in the banking house and for the in companies whose activities are unrelated to bank­ services of bank employees. (Tr. 50). ing were briefly outlined by the Senate Committee 41. Security Insurance Agency is engaged in on Banking and Currency in Senate Report No. the general insurance business. Its principal lines 1095, 84th Congress, 2d Session as follows: of insurance are fire, auto and health and accident Your committee holds the opinion that bank holding companies should confine their activities to the control insurance. (Applicant’s Exhibit 13). Most of the and management of banks and activities closely related insurance written by Security Insurance Agency is to banking. They should not combine management and written to customers who come to the banking control of banking activities with management and con­ trol of nonbanking activities. The divestment require­ house to ask for insurance. Approximately 94 per ments in this bill are designed to remove the danger cent of the policyholders of Security Insurance that a bank holding company might misuse or abuse the resources of a bank it controls in order to gain an Agency are customers of Security Bank, Webster. advantage in the operation of the nonbanking activities Approximately 40 per cent of the policyholders are it controls. borrowing customers of the bank (Applicant’s Ex­ No such danger was seen, however, in permitting hibit 14; Tr. 58-59). Approximately 11 per cent holding companies to retain ownership or control of the insurance policies written have loss payable of shares in nonbanking insurance agencies and in­ or mortgage clauses in favor of Security Bank, Web­ surance companies all of whose activities relate to, ster. (Applicant’s Exhibit 15). and could be said to be a proper incident of, the 42. It is customary for banks in the Webster banking business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 475 For example, the operation of a credit-life insurance The record is clear that each non-banking sub­ program in connection with bank loans is clearly within the scope of banking operations as presently sidiary will, as in the past, deal for the most part conducted. So is the operation of an insurance pro­ with customers of its affiliated banks and that 11%, gram under which the insurance proceeds retire the or more, of all insurance sold will relate to lend­ outstanding balance of the mortgage upon the death of the mortgagor in cases where the bank holds the ing transaction. The following table shows the mortgage.7 percentages of policies written by the Applicant’s The Board has consistently held under section insurance agencies in connection with loans made 4(c)(8) of the Act that where it is shown that the by each subsidiary bank (Applicant’s brief, p. 4): insurance activities of the non-banking subsidiary Citizens Agricultural Credit Corporation or subsidiaries will have a direct and significant (Mobridge) 24% F & M Agricultural Credit Corporation connection with the business of banking or of man­ (Aberdeen) 58% aging and controlling banks, and where it is further Citizens Insurance Agency, Inc. Clark 19.3% shown that such activities will be conducted as a Willow Lake 26% proper adjunct to the banking business of its af­ Vienna 40% filiated banks, an exemption would accord with the Bradley 52% Roslyn Insurance Agency, Inc. purposes of the Act.8 (Roslyn) 34% In determining whether the insurance activities Security Insurance Agency, Inc. of the non-banking subsidiary may properly be said (Webster) 11% to be closely related and a proper incident or ad­ In Otto Bremer Company, 1969 Federal Reserve junct to the banking business, as contemplated by Bulletin 388, 391, the Board approved acquisition section 4(c)(8) of the Act, the practice of other of five insurance agencies. Three of the five agencies banking institutions in the area is given consider­ derived 10%, 14%, and 19%, respectively, of their able weight. Thus, in Bank Shares Incorporated, 45 premiums from insurance on loan collateral. It is Federal Reserve Bulletin 959 (1959), the Board noteworthy that the Board reaffirmed the proposi­ stated that “the long established practice by banks tion that the “closley related” and “proper incident” in the area— nonholding companies as well as hold­ requirements of section 4(c)(8) of the Act were ing companies— of maintaining connected insurance satisfied even though substantially less than a ma­ agencies, without objection by bank supervising jority of the insurance agency’s activities were di­ authorities may be considered as indicating that rectly related to bank transactions.9 It held that such connections are a ‘proper’ incident to the the percentage of premiums in question which di­ banking business as conducted by the subsidiary rectly related to loan transactions were not in­ bank involved.” significant, under prior determinations of the Board, In addition, the physical and personnel connec­ and were sufficient to show a direct and significant tion between the banking and non-banking sub­ connection between the activities of the insurance sidiaries is viewed as giving rise to a presumption agencies and the business of banking, or of man­ that the activities of the insurance agencies are aging and controlling banks. “related” to the business of banking as that term is used under section 4(c)(8) of the Act. This is On the other hand, where, as here, substantially not to say that mere organizational and physical less than one-half of the insurance policies issued integration of the banks and affiliated insurance by one or more of the non-banking subsidiaries act­ agencies creates a conclusive presumption that the ing as insurance agent directly relate to loan trans­ “closely related” requirement of section 4(c)(8) of actions, it may fairly be argued that the insurance the Act can thus be met; it is to say, however, that activity is, or will be, conducted as an end in itself, a practice which the Board has held is forbidden it is a circumstance which tends to prove that the by the Act. In this connection, however, it should required nexus exists. be noted that while the National Banking Act 7 Senate Report No. 1092, supra, at p. 13. prohibits national banks in locations whose popula­ 8 See First Bank Stock Corporation, supra; Otto Bremer Company, 45 Federal Reserve Bulletin 892; Otto Bremer tion is over 5,000 from acting as agent for any fire, Company, 46 Federal Reserve Bulletin 621; Otto Bremer life or other insurance company, it nonetheless per­ Company, 47 Federal Reserve Bulletin 1039; Otto Bremer Company, 49 Federal Reserve Bulletin 1389; Otto Bremer mits such activity in locations'where the population Company, Otto Bremer Foundation, 51 Federal Reserve is below that number. 12 U.S.C. 92. See also Saxon Bulletin 1555, 1559; and Otto Bremer Company, 1961 Federal Reserve Bulletin 391. See also First Security Cor­ Bulletin 673. poration, 1969 Federal Reserve Bulletin 667; Citizens and 9 See Bank Shares Incorporated, 1959 Federal Reserve Southern Holding Company, et al., 1969 Federal Reserve Bulletin 954, 957. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

476 FEDERAL RESERVE BULLETIN □ MAY 197.0 v. Georgia Association of Independent Insurance Intermediate Credit Bank of Omaha. (See Finding Agents, Inc., 399 F. 2d 1010 (5th Cir. 1968). In­ of Fact 22 and 23.) Such activity clearly comes asmuch as six of the eight banking offices 10 of the within the purview of section 4(c)(8) of the Act, Applicant will be doing business in places having which exempts under criteria already discussed not a population ranging from 150 to 2,500, and it is only activities of an insurance nature but activities in this area that the ratio of insurance on loan, as of a financial nature as well. As stated in Otto opposed to non-loan, related transactions is low, it Bremer Company, Al Federal Reserve Bulletin 23, is not unreasonable to apply the policy underlying decided January 12, 1961, in language equally ap­ the National Banking Act in the area of insurance plicable here: in determinations under section 4(c)(8) of the The making of agricultural loans is classically a bank­ Bank Holding Company Act.11 In any event, as ing function, and one in which the Bank is presently engaged. Discounting such paper is clearly a banking previously noted, as recently as 1969, the Board or financial transaction. The Credit Company will be found a significant connection for purposes of sec­ owned by the owners of the Bank. It will be operated, tion 4(c) (8) of the Act between the activities of an supervised, and directed by the personnel and manage­ ment of the Bank. Its business will be conducted on insurance company and the business of banking, the premises of the Bank, and without separate and or of managing and controlling banks, even though identifiable quarters. Such close physical and personnel but 10% of the insurance written related to loan relationships, in connection with the transaction of financial business, while not ipso facto satisfying the transactions. Otto Bremer Company, supra; see also “closely related” requirements in Section 4(c)(6) of First Bank Stock Corporation, 1959 Federal Re­ the Act, may be regarded as giving rise to a presump­ tion that the activity in question is related or incidental serve Bulletin 917, 930 (application re First Serv­ to the business of the Bank. * * * ice Agencies, Inc.) Physical and personnel integration of non-bank­ Conclusions of Law ing with banking activities, as already stated, tends to demonstrate that the non-banking business is 1. All of the activities of Citizens Agricultural being conducted as an adjunct to the banking busi­ Credit Corporation, Citizens Insurance Agency, ness. The record shows that the Applicant’s bank Inc., Roslyn Insurance Agency, Inc., and Security personnel and bank premises are to be available to Insurance Agency of Webster, are of an insurance each non-banking subsidiary on a fee basis. The nature, and are so closely related to the business of concentration of banking and insurance services banking as to be a proper incident thereto, and as on bank premises has long been recognized as to make it unnecessary for the prohibitions of sec­ promoting bank efficiency in that the arrangement tion 4 of the Bank Holding Company Act of 1956, results in uniform practices and procedures. In ad­ as amended, to apply in order to carry out the dition, income derived from the sale of insurance purposes of that Act. strengthens, of course, the financial standing of each 2. All of the activities of F & M Agricultural banking affiliate, a matter of no small concern to Credit Corporation are of a financial and insurance those banks serving sparsely populated areas. nature, and are so closely related to the business of Based on the foregoing, it is concluded that the banking as to be a proper incident thereto, and as record supports a finding that the criteria for an to make it unnecessary for the prohibitions of sec­ exemption under section 4(c)(8) of the Act have tion 4 of the Bank Holding Company Act of 1956, been met in this case. as amended, to apply in order to carry out the pur­ The F & M Agricultural Credit Corporation re­ poses of that Act. quired separate comment. In addition to its insur­ ance activities, it will make agricultural loans, and Recommendation its loans will be re-discounted with the Federal It is recommended that the Board of Governors 10 Population of each banking location follows: Aberdeen of the Federal Reserve System: —28,000 (Tr. 23); Mobridge—approximately 5,000 (Tr. 1. Enter an order determining the issues in this 45, 94); Roslyn—approximately 200 (Tr. 47); Webster— proceeding in accordance with the above Fndings 2,500 (Tr. 60); Bradley—150; Clark—1,500; Vienna—150; Willow Lake—475 (Tr. 132). of Fact and Conclusions of Law, and 11 As of December 31, 1968, there were 248 banking 2. Grant the request of Dacotah Bank Holding offices in South Dakota. Of these, all but 31 were engaged in the general insurance business, directly or through af­ Company, for an order pursuant to section 4(c) (8) filiated organizations. (Applicant’s Exhibit 6, Tr. 30-35). of the Bank Holding Company Act of 1956, as It will be seen, therefore, that the Applicant could well amended. suffer irreparable harm if not afforded the same competi­ tive advantages in the sale of insurance as enjoyed by other (Signed) Philip J. La Macchia, banks doing business in the same area. [April 3, 1970] Hearing Examiner Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 477 CENTRAL BANKING SYSTEM, INC., facts upon which it is based change in any material OAKLAND, CALIFORNIA respect. By order of the General Counsel of the Board In the matter of the application, pursuant to sec- of Governors, May 6, 1970, acting on behalf of tion 4(cX8) of the Bank Holding Company Act of the Board pursuant to delegated authority (12 CFR 1956, by Central Banking System, Inc., Oakland, § 265.2(b)(2)). California, for a determination as to Cenval (Signed) K enneth A. Kenyon, Agency, Inc., a proposed nonbank subsidiary. Deputy Secretary. DOCKET NO. BHC— 97 [seal] Order Making Determination Under Hearing Examiner's Recommended Decision Bank Holding Company Act Central Banking System, Inc., (Applicant) a Central Banking System, Inc., Oakland, Califor­ bank holding company under section 2(a) of the nia, a bank holding company within the meaning of Bank Holding Company Act of 1956, as amended,1 section 2(a) of the Bank Holding Company Act seeks a determination by the Board of Governors of 1956 (12 U.S.C. § 1841(a)), has filed a request of the Federal Reserve System (Board) that the for a determination by the Board of Governors activities of its proposed non-banking subsidiary are of the Federal Reserve System that the activities of the kind described in section 4(c)(8) of the planned to be undertaken by its proposed nonbank A ct2 and sections 222.4(a) and 222.5(a) of the subsidiary Cenval Agency, Inc., are of the kind de­ Board’s Regulation3 so as to make it unnecessary scribed in section 4(c)(8) of the Act (12 U.S.C. for the prohibitions of section 4(a) of the A ct4 to § 1843(c)(8)) and section 222.4(a) of Federal apply in order to carry out the purposes of the Act. Reserve Regulation Y (12 CFR § 222.4(a)) so Section 4(a) prohibits a bank holding company as to make it unnecessary for the prohibitions of from acquiring direct or indirect ownership or con­ section 4(a) of the Act, respecting the ownership trol of any voting shares of a company which is or control of voting shares of nonbanking compa­ not a bank. Section 4(c)(8) excepts from the pro­ hibitions of section 4(a) the “shares of any com­ nies, to apply in order to carry out the purposes of the Act. pany all of the activities of which are or are to be of a financial, fiduciary, or insurance nature” if the Pursuant to the requirements of section 4(c)(8) Board determines after hearing and on the record of the Act, and in accordance with the provisions “such activities to be so closely related to the busi­ of section 222.4(a) and 222.5(a) of Regulation Y ness of banking or of managing or controlling banks (12 CFR §§ 224.4(a) and 222.5(a)), a hearing as to be a proper incident thereto.” was held on these matters on August 22, 1969. Pursuant to Notice of Request and Order for On March 13, 1970, the hearing examiner filed his Hearing published in the Federal Register on July report and recommended decision, a copy of which 11, 1969,5 this matter was heard by the under­ is appended hereto, wherein he recommended that signed, a duly designated Hearing Examiner6 on the Board make the requested determination. The August 22, 1969, at San Francisco, California. The time for filing exceptions to the report and recom­ Applicant and the Board, the latter in a non-advermended decision has expired, and none has been sary capacity, were represented at the hearing by filed. The findings of fact, conclusions of law, and counsel and were afforded full opportunity to be recommendations embodied therein are adopted, heard, to examine and cross-examine witnesses, to and on the basis of the entire record, introduce evidence, and to file proposed findings of It is hereby orderd, that the activities planned fact and conclusions of law and briefs in support to be undertaken by the proposed subsidiary named thereof. The Applicant’s proposed findings of fact, hereinabove are determined to be so closely related conclusions of law and supporting brief were re­ to the business of banking and of managing or ceived on September 24, 1969. Comments of Board controlling banks as to be a proper incident thereto and as to make it unnecessary for the prohibitions 112 U.S.C. 1841(a) of section 4(a) of the Bank Holding Company Act 2 12 U.S.C. 1843(c)(8) 312 CFR 222.4(a) and 222.5(a) of 1956 to apply in order to carry out the purposes 4 12 U.S.C. 1843(a) of that Act; provided, however, that this determina­ 5 34 Fed. Reg. 11506 tion is subject to revocation by the Board if the 6 Board Exhibit 2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

478 FEDERAL RESERVE BULLETIN □ MAY 1970 counsel, submitted pursuant to section 263.11(a) f. insurance to protect against loss or destruc­ of the Rules of Practice, were received on Oc­ tion of collateral required in connection with auto­ tober 6, 1969. mobile, mobile home, and some aircraft loans (Tr. Based upon a consideration of the entire record, 16); and in light of prior decisions and orders of the g. fire and similar casualty insurance required by Board, it is clear that the Applicant is entitled to the subsidiary banks in connection with loans se­ a favorable determination under section 4(c)(8) cured by interests in real property (Tr. 16); of the Act. Findings of fact and conclusions of h. vendor’s single interest insurance for interim law follow: coverage (Tr. 14, 31-32). The aggregate dollar amount of installment loans Findings of Fact and real estate loans covered by insurance as of July 31, 1969, was approximately $66,500,000 1. The Applicant, a Delaware corporation hav­ and $74,000,000, respectively, for Central Valley ing its principal office in Oakland, California, is a National Bank; $6,700,000 and $600,000, respec­ registered bank holding company under the Act. tively, for First National Bank of Fresno; $1,- It has four (4) banking subsidiaries: Central Valley 900,000 and $3,300,000, respectively, for Peninsula National Bank, First National Bank of Fresno, National Bank; and $1,500,000 and $1,300,000, re­ Livermore National Bank, and Peninsula National spectively, for Livermore National Bank (Tr. 16, Bank of Burlingame. The Applicant owns 96%, 17). or more, of the voting shares of each bank. As 4. Applicant’s subsidiary banks do not require of June 30, 1969, these banks had total deposits credit life or credit disability insurance as a condi­ of $255,238,472 and total loans of $186,025,501. tion of obtaining a loan. The purpose of credit life (Tr. 7, Applicant’s Exhibit 1 and 1(c)) insurance is to protect both the borrower’s estate 2. The Applicant proposes to create a non-bank- and the lending institution from loss in the event of ing corporate subsidiary, all of whose voting stock the borrower’s death. The life of the borrower is would be held by it, for the purpose of carrying insured in the total amount of the loan outstanding on activities of an insurance nature. (Applicant’s at any time and the amount of the insurance de­ Exhibit 1) The proposed non-banking subsidiary creases as the amount of the loan obligation will function as an insurance agency (Agency) and decreases through installment payments, etc. (Tr. will, for the most part, serve customers of the 15-16). Credit disability insurance is written on the Applicant’s banking subsidiaries in bank related same principle to guarantee payment of a loan in transactions. (Tr. 22, 33) the case of disability of the borrower which renders 3. The Agency will write insurance of the kind him unable to meet the payments as originally con­ now obtained by the Applicant and customers of templated (Tr. 16). its banking subsidiaries through outside insurance 5. Credit life and credit disability insurance agents as follows: policies are generally not available except through a. Fire and property damage and liability insur­ lending institutions or agencies connected with them ance with respect to the operation of the sub­ (Tr. 18, 21, 28). The great majority of banks in sidiary banks (Tr. 15); California presently make credit life and disability b. bankers’ blanket bond and liability insurance insurance available to their customers (Tr. 28). on employees of the subsidiary banks and robbery, Applicant’s subsidiary banks require that bor­ theft, and forgery as well as other coverage under rowers obtain insurance from some source in con­ normal bank bond insurance (Tr. 15); nection with casualty insurance on automobile, c. group life and accident, disability, and med­ mobile home, and some aircraft loans and fire and ical insurance on employees of Applicant and the storm damage insurance in connection with real subsidiary banks (Tr. 15); estate mortgage loans. Borrowers will not be re­ d. credit life and disability insurance in connec­ quired to use the services of the Agency as a con­ tion with consumer loans made by the banks (Tr. dition of obtaining these or other loans, and bor­ 15); rowers will be free to obtain insurance coverage e. occasional insurance on lives of major com­ from sources other than the Agency (Applicant’s mercial borrowers where the continued presence Exhibit 1, pp. 5 and 7). in the business of one or more individuals is con­ 7. Applicant expects that use of the Agency sidered a significant factor in the repayment of the would mean elimination of uncertainty in obtaining loan (Tr. 16); adequate coverage for banking transactions through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 479 use of uniform policies and practices among with insurance agencies (Tr. 24, 38-39). Several branches and offices of the subsidiary banks; elim­ savings and loan holding companies own title in­ ination of substantial delays heretofore experienced surance companies which write title insurance in in “followup” time spent by bank employees in connection with mortgage loans (Tr. 39). assuring that insurance coverage is, in fact, obtained 11. Applicant has been informed by the State for loans and other banking transactions; reduction insurance regulatory authority that Applicant would of clerical and other errors in insurance policies not be prohibited under State insurance law from issued; and by the application of central account­ owning and operating the Agency so long as the ing and data processing by Applicant in order to Agency and its personnel sought to be licensed met provide accurate and up-to-date Information on all the normal qualifications prescribed for any cor­ insurance in force including expiration and renewal porate insurance agency and its licensed personnel data, reducing uncertainties as to the existence of (Tr. 26-27, 37-38). Therefore, Applicant may law­ adequate coverage on collateral. Moreover, the po­ fully form and own an insurance agency subsidiary tential conflict of interest arising when an officer or in California if approval of the Board is obtained employee of the bank is permitted to retain a por­ under the Act. tion of the premium on insurance written in con­ 12. Applicant should not obtain any undue com­ nection with bank transactions will be eliminated. petitive advantage over competing banks in its serv­ (Tr. 17, 18, 19; Applicant’s Exhibit 1, p. 7) ice area by reason of formation and ownership by 8. Officers, directors, and employees of the Applicant of the Agency. Customers of Applicant’s Agency will be drawn from the Applicant and its subsidiary banks will not be offered services which banking subsidiaries. (Tr. 19) Subsidiary banks will they cannot obtain at other California banks (Tr. be compensated by Applicant on a proportionate 28, 30, 32-33). basis for the time spent by bank employees in performing services for the Agency and for space used on bank premises in connection with such Discussion services. It is expected that the Agency eventually Section 4(a) of the Bank Holding Company Act will be staffed by employees of its own. An officer of 1956, as amended, provides, inter alia, that “no or employee of the Agency will be designated as bank holding company * * * acquire direct or in­ the person responsible for carrying on the Agency’s direct ownership or control of any voting shares business and will qualify by taking the examination of any company which is not a bank”. Section required by California law. (Applicant’s Exhibit 1, 4(c)(8) exempts from the prohibitions of section p. 6; Tr. 22) 4(a) “shares of any company all of the activities 9. State banking authorities in California do not of which are or are to be of a financial, fiduciary, prohibit sharing of premises and personnel by banks or insurance nature,” provided the Board deter­ and insurance agencies or the ownership of insur­ mines after hearing and on the record such activi­ ance agencies by officers or shareholders of the ties “to be so closely related to the business of banks and such activities and relationships do exist banking or of managing or controlling banks as (Tr. 23, 36, and 37), even though State-chartered to be a proper incident thereto.” banks are prohibited from acting as insurance agents in communities having a population in excess The record shows that all of the activities of the of 5,000 persons. (Applicant’s Exhibit 1, p. 8) Agency will be of an insurance nature. Accord­ 10. Although definitive statistics on the number ingly, it remains to be determined whether the in­ of banks and other financial institutions in Califor­ surance activities of the proposed Agency will be nia having related insurance agency business are so “closely related” to the business of banking or not available, informal information given to repre­ of managing and controlling banks as to be a sentatives of Applicant by officials of the State bank “proper incident thereto.” supervisory agency has indicated that those authori­ The Board has consistently held in its determina­ ties do not restrict the sharing of premises or per­ tions under section 4(c)(8) of the Act that where sonnel or the use of bank officers as employees and it is shown that the insurance activities of the non­ that the practice does exist among State-chartered banking subsidiary will have a direct and significant banks (Tr. 36, 37). In addition, many savings and connection with the business of banking or of man­ loan institutions, major competitors of Applicant’s aging and controlling banks, and where it is fur­ subsidiary banks for certain categories of loans, ther shown that such activities will be conducted own or are affiliated, through holding companies, as a proper adjunct of the banking business of its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

affiliated banks, an exemption would accord with of banking. Secondly, the physical and personnel the purposes of the Act.7 connection between the Agency and affiliated banks The testimonial and documentary evidence ad­ give rise to a presumption that the activities of the duced at the hearing conclusively establishes that Agency will be “related” or incidental to the busi­ with minor exceptions the insurance activities of the ness of banking. This is not to say that such orga­ Agency will be exclusively confined to bank related nizational and physical integration creates a con­ transactions; that most installment and real estate clusive presumption of a close nexus between the loans of the Applicant’s subsidiary banks which are respective banking and non-banking subsidiaries, now outstanding are covered by various forms of but merely that, in the absence of evidence to the insurance to secure repayment of loans or to pro­ contrary, reason suggests that the required nexus tect against loss of loan collateral; that upon ap­ may be presumed. Thirdly, banking practices in the proval of the requested exemption under section areas to be served by the Agency are consistent 4(c)(8) of the Act, such insurance will be written with the view that the potential evils which are be­ or issued by the Agency; that insurance coverage lieved to inhere in an arrangement which permits placed by a single agency on loans of affiliated banks to engage in non-banking activities are not banks will result in uniform and efficient practices, present here. As stated by the Board in Bank Shares and will eliminate potential conflicts of interest in­ Incorporated, 45 Federal Reserve Bulletin 959 herent in the current practice of bank officers and (1959) “the long-established practice by banks in employees handling insurance sales and receiving the area— nonholding company as well as holding commissions for their own account while, at the company banks— of maintaining connected insur­ same time, serving as loan officers. In addition the ance agencies, without objection by the bank su­ Agency will function with a staff drawn from of­ pervisory authorities, may be considered as indicat­ ficials and employees of affiliated banks and will ing that such connections are a ‘proper’ incident to operate on bank premises. The record is clear, the banking business as conducted by the subsidiary moreover, that no borrower will be required to banks involved.” purchase insurance from the Agency as a condition of obtaining a loan. Conclusions of Law The evidence further shows that it is common It is concluded that the proposed insurance ac­ practice for non-bank holding companies in those tivities of the Agency will be so closely related to areas served by the Applicant to operate insurance the business of banking or of managing or control­ agencies in conjunction with banking, and that such ling banks as to be a proper incident thereto and insurance activities are generally recognized as a as to make it unnecessary for the prohibitions of proper adjunct of the business of banking by State section 4(a) of the Bank Holding [Company] Act supervisory banking authorities in California. of 1956, as amended, to apply in order to carry out The Applicant has manifestly met the statutory the purposes of the Act. criteria for an exemption under section 4(c)(8) of the Act. In the first place the vast majority of insurance to be issued by the Agency will be in Recommendation connection with bank-related transactions. There It is recommended that the Board of Governors can be no question, therefore, that the contem­ of the Federal Reserve System: plated insurance activities of the Agency will have 1. Enter an order determining the issues in this a direct and significant connection with the business proceeding in accordance with the above Findings 7 See First Bank Stock Corporation, supra; Otto Bremer of Fact and Conclusions of Law, and Company, 45 Federal Reserve Bulletin 892; Otto Bremer 2. Grant the request of Central Banking Sys­ Company, 46 Federal Reserve Bulletin 621; Otto Bremer Company, 47 Federal Reserve Bulletin 1039; Otto Bremer tem, Inc., for an order pursuant to section 4(c) (8) Company, 49 Federal Reserve Bulletin 1389; Otto Bremer of the Bank Holding Company Act of 1956, as Company, Otto Bremer Foundation, 51 Federal Reserve Bulletin 1555, 1559; and Otto Bremer Company, 1961 Fed­ amended. eral Reserve Bulletin 391. See also First Security Corpora­ (Signed) Philip J. La Macchia, tion, 1969 Federal Reserve Bulletin 667; Citizens and South­ Hearing Examiner. ern Holding Company, et al., 1969 Federal Reserve Bul­ letin 673. [March 13, 1970] 480 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGE IN THE BOARD'S STAFF tion T) and loans by banks and other lenders The Board of Governors appointed Lawrence F. (Regulations U and G, respectively) for the purpose Noble an Assistant General Counsel in the Legal of purchasing or carrying securities registered on a Division, effective April 19, 1970. national stock exchange or named in the Board’s Mr. Noble, a graduate of St. Peter’s College, over-the-counter margin list. Jersey City, received an LL.B. degree, cum laude, No change was made in the 70 per cent “reten­ from St. John’s University, Brooklyn, and has been tion requirement” applicable to undermargined on the Board’s staff since 1967. accounts. That requirement specifies the portion of the proceeds of a sale of securities from a margin RESIGNATION OF DIRECTOR account that must be retained in the account if the equity in that account does not match the new T. H. Shearin, who had served since January 1, 1968, as a director of the Los Angeles Branch of margin requirements. the Federal Reserve Bank of San Francisco, re­ Federal Reserve margin requirements set the signed effective April 16, 1970. Mr. Shearin was minimum downpayment that must be made to until recently President of the Community National purchase a stock or a convertible bond on credit. Bank in Bakersfield, California. Under a 65 per cent margin requirement, a pur­ chaser of stock is required to put up 65 per cent REDUCTION IN MARGIN REQUIREMENTS of the purchase price in cash (or collateral with The Board of Governors of the Federal Reserve that much “loan value” under the regulations) at System on May 5, 1970, lowered its margin re­ the time of the transaction. He may then obtain quirement for purchasing or carrying stocks from credit for the remaining 35 per cent of the purchase 80 to 65 per cent, effective May 6. The Board also price. lowered the margin requirement for purchasing or AMENDMENTS TO FOREIGN CREDIT RESTRAINT carrying convertible bonds— those that can be con­ GUIDELINES FOR BANKS verted into stock— from 60 to 50 per cent, also effective May 6. In making the changes, the Board The Board of Governors has amended, effective cited the sharp reduction in the use of credit for May 13, 1970, the Federal Reserve foreign credit stock purchases. restraint guidelines1 to clarify and to generalize In the Securities Exchange Act of 1934, Congress principles developed earlier in specific cases under granted the Board of Governors authority to im­ which domestic subsidiaries of U.S. banking institu­ pose margin requirements “for the purpose of tions may offset certain foreign borrowings against preventing the excessive use of credit for the pur­ the foreign assets that are subject to guideline chase or carrying of securities.” restraint. Since the last change in margin requirements in Under the amendments, domestic subsidiaries of June 1968, when they were increased from 70 to 80 Edge Act and Agreement Corporations of U.S. per cent for stocks and 50 to 60 per cent for con­ banks, in calculating their foreign assets that are to vertible bonds, margin credit extended by brokers be consolidated with those of their parents and had dropped from $6.7 billion to $4.5 billion in thereby made subject to guideline ceilings, may March 1970, and the number of margin accounts deduct any of the subsidiaries’ foreign borrowings had dropped from 940,000 to 820,000. Meanwhile, that are outstanding and that had an original credit extended by banks for purchasing or carrying maturity of 3 years or more. securities had declined from a high of $2.8 billion The principle was established in April 1968, in February 1969 to $2.4 billion in March 1970. when the Board authorized an Edge Act Corpora­ The action, amending the Board’s regulations tion to make an investment abroad through its relating to stock market credit, will cover new ex­ 1 For full text of guidelines, see Bulletins for January tensions of credit by brokers and dealers (Regula­ 1970, pp. 11-22, and March 1970, p. 311. 481 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

domestic subsidiary outside the guideline ceiling to sidiary in computing the value of assets to be con­ the extent that it financed the investment with funds solidated for reporting purposes with those of the raised abroad at terms of at least 3 years. The parent institution; any excess of outstanding bor­ principle has been reaffirmed in later specific au­ rowings of the subsidiary over foreign assets of the thorizations. The amendment gives the principle subsidiary may not be used to reduce the reportable general applicability. value of foreign assets of the parent institution. The opportunity to offset foreign borrowings Replace guideline provision II-D-4 with the fol­ against foreign assets has been confined to the “sec­ lowing: ond-tier” domestic subsidiaries of banks, that is, 4. Foreign Branches and Foreign Subsidiaries of to domestic subsidiaries of Edge Act or Agreement U.S. Banks and Banking Institutions Corporations, and not extended to banks or their a. The guidelines are not designed to restrict the Edge Act or Agreement Corporations, and has been extension of foreign credit by foreign branches of limited to borrowings of 3 years or more. Such U.S. banks or by foreign subsidiaries of U.S. banks, borrowings might have adverse effects on the bal­ Edge Act Corporations, or Agreement Corpora­ ance of payments if, in the absence of these limits, tions, except as the result of the restraints on banks they led to a substitution of deposits, or of short­ (including Edge and Agreement Corporations) with term investments, by foreigners in the United States. respect to foreign credit to, or foreign investment in, The amendments are set forth below. such branches or subsidiaries. Insert new guideline provision II-A-7 as follows: b. Total claims of a bank’s domestic offices on 7. Foreign Borrowings. its foreign branches and foreign subsidiaries (in­ In principle, the restraints under these guidelines cluding permanent capital invested in, as well as bal­ are imposed on gross foreign assets, including gross ances due from, such foreign branches and foreign claims on foreigners. However, certain liabilities to subsidiaries) represent bank credit to foreigners for foreigners may be counted as offsets to foreign purposes of the guidelines. assets only where the liabilities arise from borrow­ [The superseded provision read as follows: ings abroad that substitute for direct investment 4. Foreign Branches of U.S. Banks capital outflow from the United States and are not likely to substitute for foreign deposits, or for short­ a. The guidelines are not designed to restrict the term foreign investments, in the United States. Such extension of foreign credits by foreign branches offsetting may be done in the manner described of U.S. banks if the funds utilized are derived from below. foreign sources and do not add to the outflow of a. BANKS AND EDGE ACT AND AGREE­ capital from the United States. MENT CORPORATIONS. A bank, an “Edge Act” b. Total claims of a bank’s domestic offices on its Corporation, or an “Agreement” Corporation may foreign branches (including permanent capital in­ not count its borrowings from, or its other liabilities vested in, as well as balances due from, such to, foreigners as offsets to its claims on foreigners branches) represent bank credit to foreigners for and other foreign assets. the purposes of the program.] b. DOMESTIC SUBSIDIARIES. A domestically Insert new guideline provision II-D-5 as follows: chartered subsidiary (for example, a so-called Dela­ 5. Domestic Subsidiaries of Edge Act and Agree­ ware subsidiary) of an Edge Act Corporation or of ment Corporations an Agreement Corporation may count the outstand­ The foreign assets of domestically chartered ing amount of its borrowings from foreigners as subsidiaries of Edge Act Corporations and of offsets to its claims on foreigners and to its other Agreement Corporations (net of foreign borrowings foreign assets, provided those borrowings are of an offset under II-A-7-b, above) should be consolidated original maturity of 3 years or more. Such borrow­ with the foreign assets of the parent for purposes ings would include debentures, promissory notes, or of the guidelines. other debt obligations of the domestic subsidiary to ERRATUM a foreigner. The amount of the offset at any time would be equal to the amount of the outstandings In the April 1970 Bulletin, page 363, the order after deducting (/) any repayments of principal and and statement under the Bank Holding Company (ii) in the case of convertible debt issues, any Act referring to “Midatlantic Banks, Inc., Newark, conversions. This offsetting principle may be used New Jersey” are with respect to “Midlantic to reduce the value of foreign assets of the sub­ Banks, Inc., Newark, New Jersey.” 482 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication May 14 Industrial production declined in April to a level sharply in April, but production of most house­ 0.8 per cent below a year earlier. Nonfarm employ­ hold appliances rose further. Output of consumer ment and the average factory workweek also de­ nondurable goods was unchanged. Iron and steel clined, and unemployment rose further. The whole­ output changed little but production of most other sale price index was unchanged, although industrial durable materials and parts for further processing commodity prices continued to rise. Commercial declined. Output of rubber products decreased, in bank credit, the money supply, and time and sav­ part because of a major work stoppage. ings deposits increased further. Between mid-April EMPLOYMENT and mid-May, interest rates rose sharply and com­ mon stock prices fell. The unemployment rate rose to 4.8 per cent in April from 4.4 per cent in March. The April in­ INDUSTRIAL PRODUCTION crease was concentrated among males, with a large Industrial production in April was 170.4 per cent rise among those 16 to 24 years old. Total nonfarm of the 1957-59 average, 0.4 per cent below the payroll employment declined, due in part to strikes upward revised March level of 171.1 per cent, but and lockouts in construction and transportation. about the same as in February. Output of consumer Employment growth continued moderate in trade goods and of materials was down slightly in April, and services, and further hiring of temporary while production of business and defense equip­ Census takers raised Federal employment. Manu­ ment declined 2 per cent. Some of the decline in facturing employment was reduced further in output in April may have reflected reduced sup­ April with the drop concentrated largely in the plies of component parts because of strikes and durable goods industries. The average workweek lockouts in the trucking industry. of factory workers was off 0.2 hour to 40.0 hours, Auto assemblies changed little from the annual 0.8 hour shorter than a year earlier. rate of 7 million units reached in March. Produc­ tion schedules for May are set at an annual rate of RETAIL SALES 8 million units. Output of television sets fell The value of retail sales in April apparently rose 1.5 per cent and was 3 per cent above a year earlier. Unit sales of new domestic autos rose 2 per cent to an annual rate of 7.5 million units but INDUSTRIAL PRODUCTION 1957-59 were 9 per cent below a year earlier. In early May auto sales fell off to a rate of somewhat less than - MATERIALS,—. 7 million units. - .:7-Nc^FINAL PRODUCTS AGRICULTURE Gross income of farmers rose to a new high in the i i i i I first quarter under the impetus of strong demand _ - for livestock products. Rising production costs, _ BUSINESS r\ EQUIPMENT/ however, left net earnings little changed from 1969 levels. Increases in land prices slowed to 4 - / CONSUMER per cent in the year ending March 1, the third suc­ GOODS^^ cessive year of moderate deceleration in the rate of increase. - 1966 1968 WHOLESALE AND CONSUMER PRICES The wholesale price index was unchanged in F.R. indexes, seasonally adjusted. Latest figures: April. April as a 0.3 per cent increase in industrial 483 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

commodities was offset by a sharp decline in prices posits were heavy. Subsequently growth in these of farm products. Since mid-April, steel sheet deposit categories slackened. prices have been raised, effective June 1. Con­ Net borrowed reserves of member banks aver­ sumer prices increased 0.5 per cent in March, aged about $720 million over the five weeks end­ largely as a result of increases in charges for ing April 29 compared with $750 million in mortgage interest, medical care, and other services. March. Both member bank borrowings and ex­ cess reserves remained close to March levels. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit increased $2 billion in SECURITY MARKETS April, somewhat more than in March. Outright Interest rates on corporate bonds, municipal loan sales to affiliates continued at about the re­ securities, and Government securities increased duced March pace. A sharp increase in holdings sharply between mid-April and mid-May. Short­ of U.S. Government securities and further sub­ term yields also increased, and Treasury bills were stantial growth in holdings of municipal and quoted in the vicinity of 7 per cent, or about 70 Agency issues were offset in part by reductions in basis points above a month earlier. The bond mar­ loans, reflecting weakness in several major cate­ ket absorbed large amounts of new corporate is­ gories. sues and also experienced a combined refunding The money supply increased $1.8 billion in and cash sale of notes by the Treasury. April, almost as rapidly as in March. The increase Since mid-April yields on newly issued corpo­ in both months— on a monthly average basis— rate bonds have increased about 50 basis points, was associated in part with the sharp bulge at the exceeding the yields established during the latter end of March. On a weekly average basis, demand part of 1969. Municipal yields have also con­ deposits declined substantially during April. Time tinued to climb, reaching the 1969 record levels. and savings deposits at all commercial banks in­ Stock prices continued downward and in midcreased sharply in April. Early in the month, sales May were at a 7-year low. The volume of trading of large negotiable CD’s were substantial and on the two major exchanges remained at moderate inflows of consumer-type time and savings de- levels. PRICES INTEREST RATES Wholesale Consumer PER CENT 1957-59=100 ___^^^LMTEM^/'’ COM MODITIES^X^ ALL ITEMS LESS FOOD FARM PRODUCTS ^-^^FOOD AND FOODS _/ COMMODITIES _ 1966 1968 1970 1966 1968 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, March; Wholesale, April. years or more and for 90-day Treasury bills. Latest figures: week ending May 8. 484 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 Loan sales by banks A 33 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 □ MAY 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 (flows through Q4 1969) 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 G u id e to T a b u la r P re se n ta tio n 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 in­ clude not fully guaranteed issues) as well as direct obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other political subdivisions. In some of the tables details do not add to totals because of rounding. The footnotes labeled Note (which always appear last) provide (1) the source or sources of data that do not originate in the System; (2) notice when figures are estimates; and (3) information on other characteristics of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds. May 1970 A-70 Banks and branches, number, by class and State.......................................... Apr. 1970 A-94 Flow of funds: Semiannually Assets and liabilities: 1967..........;.................................... May 1968 A-67.10 Banking offices : 1955-68............................................ Nov. 1969 A-71.10 Analysis of changes in number of.... Feb. 1970 A-96 Flows: On, and not on, Federal Reserve 1955-68............................................ Nov. 1969 A-70 Par List, number............................. Mar. 1970 A-108 Income and expenses: Federal Reserve Banks.............................Feb. 1970 A-94 Annually Member banks: Calendar year........................................May 1969 A-95 Bank holding companies: Operating ratios.....................................May 1969 A-104 List of, Dec. 31, 1968........................ June 1969 A-91 Insured commercial banks........................May 1969 A-107 Banking offices and deposits of group banks, Dec. 31, 1968........... Aug. 1969 A-96 Banking and monetary statistics: Stock exchange firms, detailed debit 196 8 May 1969 A-91—A-94 and credit balances............................ Sept. 1969 A-94 196 9 Mar. 1970 A-94—A-l 07 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

a A 4 BANK RESERVES AND RELATED ITEMS MAY 1970 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury u H n e d l e d r co D a u n i n s d ­ ts Float 2 O F t . h R e . r Total 4 s G to o c ld k c D e R r r t a i i g w fi h c i t n a s t g e r c o e u n u r c t ­ ­ y Bought repur­ ad­ assets 3 account stand­ Total out­ chase vances ing right agree­ ment Averages of daily figures 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—De c 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966—De c 43,760 43,274 486 570 2,383 46,864 13’158 6,284 1967—De c 48,891 48,810 81 238 2,030 51,268 12^436 6,777 1968—De c 52,529 52,454 75 765 3,251 56,610 10*367 6,810 1969—Ap r 52,463 52,257 206 996 2,429 2,837 58,821 10,367 6,507 May........................... 53,390 52,898 492 1,402 2,218 2,876 59,999 10,367 6,737 June........................... 54,028 53,926 102 1,407 2,463 2,614 60,565 10,367 6,746 July........................... 54,298 54,252 46 1,190 2,684 2,670 60,887 10,367 6,737 Aug............................ 54,599 54,334 265 1,249 1,230 2.672 60,876 10,367 6,739 Sept............................ 53,840 53,722 118 1,067 2,477 3,032 60,459 10,367 6,761 Oct............................. 54,708 54,497 211 1,135 2,462 3,153 61,516 10,367 6,785 Nov............................ 56,499 56,424 75 1,241 2,541 2,460 62,788 10,367 6,810 Dec............................ 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Fe b 55,949 55,548 401 1,099 2,476 1,853 61,468 11,367 243 6,869 Mar............................ 55,780 55,695 85 936 2,551 2,061 61,388 11,367 345 6,891 Apr.p......................... 55,982 55,787 195 878 3,251 2,209 62,401 11,367 400 6,919 Week ending— 1970—Feb. 4. 55,892 55,511 381 1,258 2,488 1,905 61,630 11,367 200 6,857 11. 55,768 55,521 247 1,069 2,525 2,003 61,446 11,367 200 6,865 18. 56,299 55,543 756 1,110 2,395 1,729 61,657 11,367 229 6,867 25. 55,769 55,487 282 1,077 2,532 1,765 61,226 11,367 300 6,873 Mar. 4. 55,700 55,700 876 2,382 1,988 61,002 11,367 300 6,883 11. 55,393 55,393 972 2,427 2,013 60,860 11,367 300 6,887 18. 56,032 55,906 126 857 2,450 2,069 61,471 11,367 314 6,888 25. 55,838 55,825 13 976 2,665 2,089 61,624 11,367 400 6,894 Apr. 1.......... 55,986 55,714 272 989 2,886 2,125 62,060 11,367 400 6,903 8.......... 55,727 55,674 53 536 3,466 2,153 61,948 11,367 400 6,907 15.......... 56,121 55,830 291 1,057 2,914 2,189 62,379 11,367 400 6,914 22P........ 55,975 55,832 143 1,018 3,553 2,231 62,847 11,367 400 6,924 29 p........ 56,017 55,760 257 983 3,135 2,267 62,489 11,367 400 6,931 End of month 1970—Feb... 55,823 55,823 1,148 2,568 1,977 61,572 11,367 300 6,881 Mar... 55,785 55,785 684 2,827 2,139 61,487 11,367 400 6,911 Apr. p. 56,542 756,162 380 546 3,502 2,239 62,935 11,367 400 6,946 Wednesday 1970—Feb. 4. 56,304 755,517 787 1,187 3,021 1,852 62,468 11,367 200 6,866 11. 56,211 755,544 667 997 2,200 1,829 61,365 11,367 200 6,864 18. 56,371 755,543 828 663 2,534 1,572 61,279 11,367 300 6,872 25. 55,749 755,543 206 873 1,955 1,802 60,464 11,367 300 6,879 Mar. 4. 55,064 6.755,064 452 2,536 2,007 60,115 11,367 300 6,886 11. 54,922 6.754,922 496 2,097 2,034 59,602 11,367 300 6,888 18. 56,447 756,102 345 621 2,777 2,171 62,097 11,367 400 6,887 25* 55,621 755,532 89 1,594 2,237 2,101 61,629 11,367 400 6,900 Apr. \p. 56,035 755,785 250 613 2,948 2,159 61,843 11,367 400 6,907 8*\ 55,564 755,564 445 2,845 2,173 61,085 11,367 400 6,912 15*. 56,380 755,876 504 1,435 3,077 2,210 63,218 11,367 400 6,922 22 p. 56,078 755,580 498 1,349 3,026 2,254 62,830 11,367 400 6,926 29p. 56,085 756,085 924 2,745 2,251 62,063 11,367 400 6,934 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Cur­ reserves, Other reserves Period or date re c i n i n r c ­ y T c u r a e r s a y h s­ with F.R. Banks O F a t . c h R ­ e . r b F i l l . i i R a ti ­ e . s c t u io la n ­ h i o ng ld s ­ T u re r a y s­ F ei o g r n ­ Other 2 counts 3 ca a p n it d al 3 B W F a .R n it k h . s r C e a n n u c d r y ­ Total coin 5 Averages of daily figures 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. 49,703 707 369 131 510 1,937 22,581 4,498 27.079 ..................................Apr. 49,947 691 549 132 445 1,968 23,371 4,532 27,903 .................................May 50,693 672 970 107 458 2,010 22,768 4,549 27,317 .................................June 51,256 657 1,117 142 473 2,038 22,309 4,671 26,980 ..................................July 51,328 671 881 141 469 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 23,071 4,960 28,031 .................................Dec. 52,113 610 1,060 182 710 2,160 23,112 4,864 27,976 .....................1970—Feb. 52,412 575 1,148 219 763 2,134 22,740 4.733 27.473 ................................Mar. 52,867 567 1,180 166 870 2,137 23,300 4,749 28,049 .................................Apr.P Week ending— 51,960 633 1,071 157 682 2,190 23,360 5,055 28,415 .............................Feb. 4 52,143 618 1,164 150 630 2,267 22,906 5,091 27,997 .....................................11 52,202 607 1,047 169 724 2,084 23,286 4,773 28,059 .....................................18 52,080 600 1,085 196 759 2,100 22,946 4,631 27,577 .....................................25 52,107 588 1,005 267 770 2,173 22,640 4,822 27,462 .............................Mar. 4 52,319 575 1,049 212 714 2,233 22,311 4,922 27,233 .....................................11 52,508 569 1,062 215 745 2,040 22,902 4,729 27,631 .....................................18 52,459 573 1,223 187 792 2,089 22,962 4,510 27,472 .....................................25 52,566 572 1,281 238 820 2,151 23,100 4.706 27,806 .............................Apr. 1 52,718 576 1,156 214 881 2,218 22,859 4,850 27,709 ..................................... 8 52,988 567 954 136 876 2,161 23,378 4,884 28,262 ....................................15 52,945 567 1,158 143 863 2,042 23,819 4,540 28,359 ....................................22* 52,817 559 1,384 158 863 2,110 23,295 4.707 28,002 .....................................29? End of month 52,032 580 915 313 776 2,156 23,344 4,824 28,168 .................1970—Feb. 52,681 566 1,192 200 839 2,172 22,495 4,706 27,201 .............................Mar. 53,029 557 1,784 204 825 2,200 23,049 4,898 27,947 .............................Apr.p Wednesday 52,108 620 1,205 178 681 2,236 23,873 5,055 28,928 .............................Feb. 4 52,335 613 1,019 136 753 2,299 22,641 5,093 27,734 .....................................11 52,207 605 872 187 773 2,091 23,083 4,775 27,858 ....................................18 52,224 602 900 228 837 2,125 22,094 4,632 26,726 .....................................25 52,223 594 1,058 174 764 2,204 21,651 4,824 26,475 .............................Mar. 4 52,546 575 1,173 214 740 2,250 20,660 4,929 25,589 .....................................11 52,565 575 1,048 180 832 2,062 23,489 4,730 28,219 ....................................18 52,553 581 1,479 194 815 2,106 22,568 4,510 27,078 .....................................25 52,712 578 1,057 212 908 2,185 22,865 4,698 27,563 ...........................Apr. 1 p 52,958 577 1,009 144 901 2,235 21,940 4,847 26,787 .................................... 8p 53,086 570 869 152 926 2,017 24,287 4,889 29,176 ....................................15 p 52,947 570 941 189 885 2,070 23,922 4,540 28,462 ....................................22p 53,024 564 1,367 224 869 2,138 22,578 4,707 27,285 ....................................29 p 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- 8 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 6 Reflects securities sold, and scheduled to be bought back, under netted together and reported as “Other F.R. accounts.” matched sale/purchase transactions. * Includes industrial loans and acceptances, when held (industrial 7 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 a MAY 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 el t d al qu R ir e e ­ d i Excess B r F i o a n a . n w g R t k s ­ . s s F e r 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 o a n . a w n R g t k s . ­ s se F r r r e v e ­ e e s T h o el ta d l qui R re e d ­ i Excess B F r i a o n a . n R w g t k s . ­ s s F e r r r v e e e ­ e s 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 I960—Dec............. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 —4 1963—Dec............. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 26 -21 1964—Dec............. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 1,086 -3 28 -31 1965—Dec............. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1966—Dec............. 23,830 23,438 392 557 -165 4,583 4,556 27 122 -95 1,119 1,115 4 54 -50 1967—Dec............. 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—Dec............. 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 1,184 15 85 -70 1969—Apr............. 27,079 26,927 152 996 -844 5,039 5,045 -6 111 -117 1,202 1,202 116 -116 May............ 27,903 27,603 300 1,402 -1,102 5,174 5,134 40 129 -89 1,277 1,281 -4 144 -148 June............ 27,317 26,974 343 1,407 -1,064 4,962 4,894 68 96 -28 1,241 1,206 35 27 8 July............. 26,980 26,864 116 1,190 -1,074 4,837 4,817 20 86 -66 1,197 1,207 -10 5 -15 Aug............. 27,079 26,776 303 1,249 -946 4,963 4,922 41 93 -52 1,188 1,196 -8 39 -47 Sept............. 26,971 26,735 236 1,067 -831 4,990 4,967 23 87 -64 1,200 1,186 14 51 -37 Oct.............. 27,340 27,197 143 1,135 -992 5,195 5,183 12 138 -126 1,228 1,235 -7 19 -26 Nov............. 27,764 27,511 253 1,241 -988 5,376 5,350 26 169 -143 1,244 1,254 -10 57 -67 Dec............. 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 27 -9 1970—Jan.............. 28,858 28,692 166 965 -799 5,668 5,659 9 141 -132 1,320 1,316 4 86 -82 Feb.............. 27,976 27,703 273 1,092 -819 5,458 5,424 34 110 -76 1,253 1,264 -11 47 -58 Mar............. 27,473 27,358 115 896 -781 5,349 5,344 5 153 -148 1,265 1,249 16 31 -15 Apr.?.......... 28,049 27,976 72 823 -751 5,476 5,454 23 227 -204 1,296 1,316 -20 61 -81 Week ending— 1969—Apr. 2---- 26,743 26,434 309 1,195 -886 5,027 4,999 28 28 1,188 1,184 4 312 -308 9.... 26,599 26,374 225 947 -722 4,903 4,918 -15 75 -90 1,167 1,168 -1 258 -259 16.... 26,616 26,472 144 759 -615 4,969 4,999 -30 105 -135 1,237 1,221 16 37 -21 23.... 27,580 27,408 172 1,135 -963 5,235 5,198 37 212 -175 1,192 1,206 -14 35 -49 30.... 27,657 27,572 85 1,118 -1,033 5,048 5,077 -29 84 -113 1,215 1,218 -3 53 -56 Dec. 3---- 27,737 27,534 203 1,191 -988 5,300 5,294 6 266 -260 1,229 1,227 2 1 . 1 10.... 27,775 27,484 291 1,200 -909 5,444 5,355 89 299 -210 1,254 1,257 -3 -3 17.... 28,016 27,919 97 1,044 -947 5,465 5,471 -6 164 -170 1,291 1,287 4 4 24.... 27,876 27,612 264 1,096 -832 5,255 5,238 17 296 -279 1,242 1,238 4 4 31.... 28,680 28,152 528 1,104 -576 5,628 5,515 113 348 -235 1,320 1,304 16 120 -104 1970—Jan. 7.... 28,696 28,411 285 852 -567 5,624 5,604 20 196 -176 1,304 1,312 -8 197 -205 14___ 28,988 28,911 77 865 -788 5,747 5,780 -33 234 -267 1,335 1,340 -5 29 -34 21.... 29,400 29,196 204 963 -759 5,923 5,873 50 80 -30 1,366 1,360 6 77 -71 28.... 28,518 28,406 112 1,030 -918 5,410 5,451 -41 86 -127 1,290 1,279 11 16 -5 Feb. 4---- 28,415 28,204 211 1,258 -1,047 5,520 5,489 31 75 -44 1,269 1,287 -18 104 -122 11.... 27,997 27,790 207 1,069 -862 5,414 5,399 15 130 -115 1,272 1,260 12 12 18.... 28,059 27,810 249 1,110 -861 5,645 5,576 69 218 -149 1,275 1,292 -17 121 ” -138 25.... 27,577 27,405 172 1,065 -893 5,323 5,317 6 6 1,254 1,237 17 7 10 Mar. 4---- 27,462 27,264 198 836 -638 5,309 5,288 21 86 -65 1,213 1,238 -25 7 -32 11.... 27,233 27,162 71 932 -861 5,300 5,326 -26 169 -195 1,255 1,247 8 9 -1 18.... 27,631 27,481 150 817 -667 5,434 5,429 5 146 -141 1,255 1,266 -11 7 -18 25.... 27,472 27,376 96 936 -840 5,338 5,312 26 102 -76 1,240 1,225 15 97 -82 Apr. 1.... 27,806 27,467 339 949 -610 5,415 5,340 75 232 -157 1,256 1,265 -9 25 -34 8.... 27,709 27,530 179 496 -317 5,417 5,317 100 100 1,290 1,293 -3 17 -20 15.... 28,262 28,160 102 1,017 -915 5,487 5,536 -49 349 -398 1,347 1,364 -17 134 -151 22v. .. 28,359 28,221 138 971 -833 5,648 5,584 64 525 -461 1,342 1,336 6 20 -14 29p... 28,002 28,026 -24 893 -917 5,369 5,394 -25 86 -111 1,270 1,279 -9 86 -95 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 Borrow­ Reserves Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves Banks Banks T h o e t l a d l Required1 Excess T h o el ta d l Required i Excess 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. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 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. 10,914 10,923 -9 512 -521 9,924 9,757 167 257 -90 ...........................1969—Apr. 11,275 11,195 80 618 -538 10,177 9,993 184 511 -327 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 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 ......................................Sept. 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 10,970 10,964 6 479 -473 10,335 10,158 177 321 -144 11,296 11,314 -18 455 -473 10,574 10,403 171 283 -112 ...........................1970—Jan. 10,975 10,913 62 535 -473 10,290 10,102 188 400 -212 .......................................Feb. 10,737 10,802 -65 436 -501 10,122 9,963 159 276 -117 11,031 11,065 -34 373 -407 10,244 10,142 102 162 -60 ......................................Apr.P Week ending— 10,706 10,693 13 512 -499 9,822 9,558 264 371 -107 .....................1969—Apr. 2 10,762 10,738 24 372 -348 9,767 9,550 217 242 -25 .......................................... 9 10,689 10,743 -54 443 -497 9,721 9,509 212 174 38 ..........................................16 11,109 11,091 18 663 -645 10,044 9,913 131 225 -94 ..........................................23 11,159 11,185 -26 617 -643 10,235 10,092 143 364 -221 ..........................................30 10,879 10,858 21 545 -524 10,329 10,155 174 379 -205 10,846 10,818 28 522 -494 10,231 10,054 177 379 -202 ..........................................10 10,984 11,034 -50 584 -634 10,276 10,127 149 296 -147 ..........................................17 11,032 10,961 71 508 -437 10,347 10,175 172 292 -120 ..........................................24 11,187 11,091 96 337 -241 10,545 10,242 303 299 4 ..........................................31 11,280 11,223 57 216 -159 10,488 10,272 216 243 -27 .....................1970—Jan. 7 11,349 11,439 -90 440 -530 10,557 10,352 205 162 43 ..........................................14 11,455 11,482 -27 554 -581 10,656 10,481 175 252 -77 ..........................................21 11,210 11,220 -10 542 -552 10,608 10,456 152 386 -234 11,140 11,110 30 596 -566 10,486 10,318 168 483 -315 10,964 11,000 -36 606 -642 10,337 10,121 216 321 -105 ..........................................11 10,930 10,916 14 386 -372 10,209 10,026 183 385 -202 10,774 10,769 5 593 -588 10,226 10,082 144 465 -321 ..........................................25 10,773 10,751 22 404 -382 10,167 9,987 180 339 -159 .................................Mar. 4 10,644 10,722 -78 530 -608 10,034 9,867 167 224 -57 ..........................................11 10,866 10,866 394 -394 10,076 9,920 156 270 -114 ..........................................18 10,781 10,833 -52 458 -510 10,113 10,006 107 279 -172 ..........................................25 10,914 10,822 92 400 -308 10,221 10,040 181 292 -111 10,794 10,891 -97 301 -398 10,208 10,029 179 178 1 .......................................... 8 11,208 11,194 14 395 -381 10,220 10,066 154 139 15 ..........................................15 11,089 11,127 -38 307 -345 10,281 10,174 107 119 -12 ..........................................22 p 11,058 11,078 -20 512 -532 10,305 10,275 30 209 -179 ..........................................29p 1 Beginning Sept. 12, 1968, amount is based on close-of-business fig­ Total reserves held: Based on figures at close of business through Nov ures for reserve period 2 weeks previous to report date. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ MAY 1970 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, unless otherwise noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Net- Gross transactions Net transactions Reporting banks and Total Bor­ week ending— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F f i b e n u N a d n t n e e e d t r r k s ­ al S d u e r o f p i r c lu it s r P r e e e q a s r u e o v c r g i f v r e . e e n d s t c P ha u s r e ­ s Sales t a w c tr t o a i - o n w n s­ a s2 y b c o b u P h a f y a u n n i s r k n e e ­ s g s t s b o S e a f a l n l l n i e k n e s s g t d L ea o t l a o e n rs s 3 de f r i a r o n o l w g e m s r ­ s4 lo N a e n t s trans. Total—46 Banks 1970—Mar. 4.......... 114 79 4,008 -3,972 33.4 7,204 3,196 2,811 4,393 384 1,188 329 859 11.......... 23 518 4,829 -5,324 44.6 7,605 2,776 2,442 5,163 334 1,358 366 992 18.......... -45 362 4,865 -5,271 43.6 7,582 2,717 2,591 4,991 126 957 306 652 25.......... 52 386 4,308 -4,643 38.8 7,061 2,753 2,447 4,615 307 1,152 297 855 Apr. 1......... 159 496 4,367 -4,705 39.2 7,140 2,772 2,429 4,711 343 1,797 229 1,569 8.......... 137 269 5,949 -6,081 50.4 8,316 2,367 2,338 5,978 29 2,336 222 2,114 15.......... 16 832 6,624 -7,439 59.4 8,832 2,208 2,183 6,649 25 1,854 160 1,694 22.......... 60 769 7,179 -7,888 63.2 9,221 2,042 2,007 7,214 36 2,026 176 1,850 29.......... 29 424 4,839 -5,235 43.0 7,814 2,975 2,634 5,180 340 1,154 213 942 8 in New York City Mar. 4.......... 52 32 609 -589 12.2 1,913 1,305 1,194 720 111 858 123 735 11.......... 21 169 1,329 -1,478 30.5 2,298 969 963 1,334 6 943 145 798 18.......... 16 146 1,180 -1,311 26.5 2,289 1,109 1,109 1,180 698 141 557 25.......... 45 97 961 -1,013 20.9 2,039 1,078 1,039 1,000 40 892 151 741 Apr. 1.......... 97 232 1,302 -1,437 29.5 2,201 899 899 1,302 1,038 108 931 ' 8.......... 134 1,640 -1,506 31.0 2,521 880 880 1,640 1,042 125 917 15.......... 3 322 2,042 -2,362 46.7 2,749 707 707 2,042 927 99 828 22.......... 45 517 2,479 -2,951 57.9 3,073 595 595 2,478 989 115 875 29.......... 14 63 1,358 -1,406 28.6 2,321 963 879 1,441 84 662 145 517 38 outside New York City 1970—Mar. 4.......... 62 46 3,399 -3,383 47.8 5,290 1,891 1,617 3,673 273 330 205 124 11.......... 3 349 3,500 -3,846 54.3 5,307 1,807 1,479 3,828 328 415 222 193 18.......... -60 216 3,685 -3,961 55.5 5,293 1,609 1,483 3,810 126 259 165 95 25.......... 7 289 3,348 -3,630 51.0 5,022 1,675 1,408 3,614 267 261 147 114 Apr. 1.......... 62 264 3,065 -3,267 45.8 4,938 1,873 1,530 3,409 343 759 121 638 8.......... 3 269 4,309 -4,575 63.5 5,796 1,487 1,458 4,338 29 1,295 98 1,197 15.......... 14 510 4,582 -5,078 68.0 6,083 1,501 1,476 4,607 25 928 62 866 22.......... 15 252 4,700 -4,937 66.9 6,148 1,448 1,412 4,736 36 1,037 62 976 29.......... 14 361 3,481 -3,828 52.7 5,493 2,012 1,755 3,738 257 493 68 425 5 in City of Chicago 1970—Mar. 4.......... -11 1,124 -1,135 100.5 1,458 335 335 1,124 60 60 11.......... 16 1,367 -1,352 119.3 1,668 301 301 1,367 68 68 18.......... -5 1,066 -1,071 92.9 1,489 423 423 1,066 47 47 25.......... 16 90 1,133 -1,208 108.4 1,444 311 311 1,133 46 46 Apr. 1.......... 6 21 988 -1,003 86.9 1,287 299 299 988 95 95 8.......... 12 15 1,251 -1,254 106.2 1,594 343 343 1,251 92 92 15.......... -10 134 1,435 -1,580 126.6 1,739 304 304 1,435 50 50 22.......... 9 20 1,528 -1,540 126.0 1,841 313 313 1,528 54 54 29.......... -5 86 1,280 -1,371 117.7 1,598 317 317 1,280 108 108 33 others 1970—Mar. 4.......... 73 46 2,276 -2,249 37.8 3,832 1,557 1,283 2,550 273 269 205 64 11.......... -13 348 2,133 -2,494 42.0 3,639 1,506 1,178 2,461 328 348 222 126 18.......... -55 216 2,618 -2,889 48.2 3,804 1,185 1,060 2,744 126 212 165 48 25.......... -9 199 2,214 -2,422 40.4 3,578 1,364 1,097 2,481 267 215 147 68 Apr. 1.......... 56 243 2,077 -2,264 37.9 3,651 1,574 1,231 2,421 343 664 121 543 8.......... -9 254 3,058 -3,321 55.1 4,202 1,144 1,115 3,087 29 1,203 98 1,105 15.......... 24 375 3,147 -3,498 56.3 4,344 1,197 1,172 3,172 25 878 62 816 22.......... 6 232 3,172 -3,398 55.1 4,307 1,135 1,100 3,208 36 983 62 921 29.......... 19 276 2,201 -2,458 40.2 3,896 1,695 1,438 2,458 257 385 68 317 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry­ 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank’s weekly average pur­ by Govt, or other issues. chases and sales are offsetting. Note.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 Bulletin, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ DISCOUNT RATES A 9 FEDERAL RESERVE BANK DISCOUNT RATES (Per cent per annum) Discounts for and advances to member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 13 3 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b)2 A R p a 1 r t 9 e . 7 0 o 30 n , Ef d fe a c t t e ive Pre ra v t i e ous A R p a 1 r t 9 e . 7 0 o 3 n 0, Ef d fe a c t t e ive Pre ra v t i e ous A R p a 1 r t 9 e . 7 0 o 30 n , Ef d fe a c t t e ive Pre r v a i t o e us Boston............................................. 6 Apr. 8, 1969 51/2 6V2 Apr. 8, 1969 6 7V4 Feb. 2, 1970 7 New York....................................... 6 Apr. 4, 1969 5 Vi 61/2 Apr. 4, 1969 6 7V4 Apr. 4, 1969 7 Philadelphia.................................... 6 Apr. 4, 1969 5Vi 6% Apr. 4, 1969 6 7i/4 Feb. 10, 1970 7 Cleveland........................................ 6 Apr. 4, 1969 5% 61/2 Apr. 4, 1969 6 7V4 Apr. 4,1969 7 Richmond....................................... 6 Apr. 4, 1969 5 V2 6% Apr. 4, 1969 6 71/2 Feb. 18, 1970 7 Atlanta............................................ 6 Apr. 4, 1969 5V4 6Yl Apr. 4, 1969 6 71/2 Feb. 10, 1970 7 Chicago........................................... 6 Apr. 4, 1969 5% 6ih. Apr. 4, 1969 6 71/4 Mar. 4, 1970 7 St. Louis.......................................... 6 Apr. 4, 1969 5Vi 6!h Apr. 4, 1969 6 71/2 Mar. 16, 1970 7 Minneapolis.................................... 6 Apr. 4, 1969 5'A 61/2 Apr. 4, 1969 6 71/2 Apr. 4,1969 6V4 Kansas City.................................... 6 Apr. 4, 1969 5% 61/4 Apr. 4, 1969 6 71/4 Feb. 18, 1970 7 Dallas.............................................. 6 Apr. 4, 1969 5% 6% Apr. 4, 1969 6 7V4 Feb. 18, 1970 7 San Francisco................................. 6 Apr. 4, 1969 5% 6 % Apr. 4, 1969 6 71/4 Feb. 2, 1970 7 i 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 3 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 All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1941 1 -IVz 1955—Cont. 1960 A O p ct r . . 3 1 1 0 5 1 . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . 9 . . . 4 . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t t J * /4 4-1 tV 1 1 i N Se o p v t. . 2 1 1 3 9 3 8 ................. • . 2 2 i/ 2 2 4 1 - % - / 2 2 2 % i/2 2 2 2 2 V V ' % A a a A S Ju e u n p g e t . . 1 1 1 9 3 2 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 1 / 3 3 4 4 V - - - 3 4 4 4 14 4 3 3 3 3 1 V / 4 4 1946 1956 1963 A M p a r y . 2 1 5 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t Vi-1 Apr. 2 1 0 3 . . 2 2V i/ a 2 - - 3 3 2 2 V V a a July 2 1 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 31 - / 3 4 1/2 3 Vi Aug. 24. 2%-3 3 1948 31. 3 3 Nov. 24.... 1 .. 9 .. 6 . 4 .................... 31/4-4 4 Jan. 12....................... 1 -1 Va Wa 1957 30............................. 4 4 Aug. 2 1 1 3 9 3 . . . . . .. . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . .. . . . . . Wa W 1V -W a i i W 1 iV % a i A N u o g v . . 2 1 9 3 5 . . . 3 3 3 - - % 3 3 1 1 / / 2 2 3 3 3 V4 Dec. 1 6 . 3 .. . 1 .. 9 .. 6 . 5 .................... 4 41 -4 /2 1/2 4 4 % Vi 1950 Dec. 2. 3 3 1967 Aug. 21....................... Wi-Wa Wa 1958 Apr. 7............................. 4 -41/2 4 25....................... m Wa Jan. 22. 2%-3 3 1 4 4 4 A M F Ja e p n a b r y . . . 2 2 1 1 1 1 5 1 4 3 6 . 6 . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . 1 . . . . . . . . 9 9 . . . . . . . 5 5 . . . . . . . . . . 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 IV 3 2 a I 4 V - - 2 2 a 1 1 8 8 A O N A S M M e u c o p a a p t g v r y r . t . . . . . 2 2 2 2 1 1 1 1 9 7 4 7 1 3 4 5 2 8 3 . . . . . . . . . . . f 2 2 W W W 1 f 2 / 2 a a a 2 W 4 V i - - - - / l - 2 2 2 4 2 a a 2 V 1 % /2 a 2 2 2 2 2 I 2 W W W 1 S V V / a 4 a a a a D N A A M e u o p a c g r v r . . . . . 2 2 2 2 2 3 1 1 1 1 2 0 0 6 0 7 9 6 5 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 4 5 4 1 1 V / / 5 5 5 4 5 4 4 4 1 1 1 1 - - - - - / / 5 / / 5 5 4 5 2 4 2 4 1 1 V % / / 4 2 2 5 4 5 5 4 5 5 5 5 4 1 V 1 1 1 V V ! V / V / / / 4 a 4 4 4 4 4 4 i 1955 1959 1969 Apr. 14....................... Wi-Wa 1V4 Mar. 6. 21/4-3 3 Apr. 4............................. 51/2-6 6 15....................... m-iVA 16. 3 3 8............................. 6 6 May 2....................... IVa II May 29. 3 -31/2 31/4 Aug. 4....................... 1Va-2Va June 12. 31/2 31/4 1970 5....................... IVa-2% i* Sept. 11. 31/4-4 4 12....................... 2 -2(4 2 18. 4 4 In effect Apr. 30,1970---- 6 6 t Preferential rate of V2 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 Secs. 13 and 13a (as described in table 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, above). For data before 1942, see Banking and Monetary Statistics, 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968—Apr. 4,5,11, 15,16,5.125; 1943, pp. 439-42. Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 11-13, 19, 21,24,5.75; The rate charged by the F.R. Bank of N.Y. on repurchase contracts July 5, 16, 5.625; Aug. 16, 19, 5.25. against U.S. Govt, obligations was the same as its discount rate except Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ MAY 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 4.5 deposits 2 deposits 2-4 (all classes of banks) Time depos­ its Reserve Country Other Effective date * C re e s n e t r r v a e l s R er e v ­ e Coun­ cl ( a a s l s l es Effective date * city banks banks S in a g v s ­ time deposits ba c n i k ty s 3 b c a i n ty ks ba tr n y ks ba o nk f s) Under Over Under Over de i p ts os­ Under Over $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ lion lion lion lion lion lion In effect Dec. 31, 1949........ 22 18 12 5 1966—July 14,21....... 6 16% 6 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............. 3% 3% 1953—July 9,1................. 22 19 13 Mar. 16............. 3 3 1954—June 24, 16............... 21 5 July 29, Aug. 1__ 20 18 12 1968—Jan. 11,18 16% 17 12 12% 1958—Feb. 27, Mar. 1.... 191/z 11% Mar. 20, Apr. 1.... 19 !IK 11 1969—Apr. 17............. 17 17% 12% 13 Apr. 17..................... 18% Apr. 24..................... 18 16% In effect Apr. 30,1970. . 17 17% 12% 13 3 3 6 I960_Sept 1 17% Nov. 24..................... 12 Present legal Dec. 1..................... 16% requirement: 1962—July 28..................... (3) Minimum.................. 10 7 3 3 3 Oct. 25, Nov. 1.... 4 Maximum................. 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central 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 28, 1962. 6 See preceding columns for earliest effective date of this rate. 4 Beginning Oct. 16, 1969, a member bank is required under Regula­ tion 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 Jan. 16, Aug. 5, Oct. 16, July 28, July 10, Nov. 6, Mar. 11, Juno 8, May 6, 1958 1958 1958 1960 1962 1963 1968 1968 1970 Regulation T: For credit extended by brokers and dealers on— Margin stocks...................................................... 50 70 90 70 50 70 70 80 65 Registered bonds convertible into margin stocks 50 60 50 For short sales......................................................... 50 70 90 70 50 70 70 80 65 Regulation U: For credit extended by banks on— Margin stocks...................................................... 50 70 90 70 50 70 70 80 65 Bonds convertible into margin stocks............... 50 60 50 Regulation G; For credit extended by others than brokers and dealers and banks on— Margin stocks...................................................... 70 80 65 Bonds convertible into listed stocks................... 50 60 50 Note.—Regulations G, T, and U, prescribed in accordance with the cent) and the maximum loan value. The term margin stocks is defined in Securities Exchange Act of 1934, limit the amount of credit to purchase the corresponding regulation. and carry margin stocks that may be extended on securities as collateral Regulation G and special margin requirements for bonds convertible by prescribing a maximum loan value, which is a specified percentage into stocks were adopted by the Board of Governors effective Mar. 11, of the market value of the collateral at the time the credit is extended; 1968. margin requirements are the difference between the market value (100 per Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits........... Other time deposits:2.., Multiple maturity:3.., 12 months or more.. 4 30-89 days.............. 4 4 'A Less than 12 months. 3 Vi 90 days-1 year........ 5 1 year to 2 years 5 5 Vi 2 years and over sy4 Single-maturity: Other time deposits: 2 Less than $100,000: 30 days to 1 year.. 5 1 year to 2 years.. 5% 5% 12 months or more........ 4 2 years and over. . 5% 6 months to 12 months.. 3% 4% $100,000 and over: 90 days to 6 months.... 2% 30-59 days.......... 5% 61/4 Less than 90 days........... 1 4 60-89 days.......... 5V4 6% (30-89 days) 90-179 days........ 5Vz 6 63/4 180 days to 1 year. 7 1 year or more. .. W/4 m 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ Note.—Maximum rates that may be paid by member banks as estab­ imum rates on postal savings accounts coincided with those on savings lished by the Board of Governors under provisions of Regulation Q; deposits. however, a member bank may not pay a rate in excess of the maximum 2 For exceptions with respect to certain foreign time deposits, see rate payable by State banks or trust companies on like deposits under Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, the laws of the State in which the member bank is located. Beginning p. 167. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 3 Multiple-maturity time deposits include deposits that are automati­ commercial banks, as established by the FDIC, have been the same as cally renewable at maturity without action by the depositor and deposits those in effect for member banks. that are payable after written notice of withdrawal. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeksending Feb. 25, 1970 Four weeks ending Mar. 25, 1970 I Gross demand—Total... 180,256 44,865 7,377 61,651 66,363 Gross demand—Total__ 179,551 44,303 7,363 61,791 66,094 Interbank..................... 22,306 9,918 1 ,296 8,640 2,452 Interbank..................... 22,149 9,825 1,320 8,543 2,462 U.S. Govt..................... 6,009 1,279 360 2,438 1 ,932 U.S. Govt.................... 5,741 1,030 305 2,325 2,081 Other............................ 151,942 33,668 5,722 50,573 61,979 Other........................... 151,661 33,449 5,737 50,924 61,552 Net demand 1................. 133,791 25,532 5,737 46,854 55,669 Net demand 1............... 133,640 25,381 5,763 47,091 55,404 Time................................. 148,670 14,675 4,645 54,109 75,241 Time................................ 150,547 15,112 4,712 54,576 76,147 Demand balances due Demand balances due from dom. banks........ 9,651 541 135 2,770 6,205 from dom. banks......... 9,340 All 122 2,552 6,240 Currency and coin.......... 4,887 418 83 1,511 2,876 Currency and coin........... 4,746 409 86 1 ,474 1,111 Balances with F.R. Balances with F.R. Banks........................... 23,125 5,058 1 ,185 9,444 7,439 Banks............................ 22,704 4,936 1,155 9,292 7,321 Total reserves held.......... 28,012 5,476 1 ,268 10,955 10,315 Total reserves held.......... 27,450 5,345 1,241 10,766 10,098 Required....................... 27,802 5,445 1,269 10,951 10,137 Required....................... 27,321 5,339 1,244 10,793 9,945 Excess.......................... 210 31 -2 4 178 Excess........................... 129 6 -3 -27 153 1 Demand deposits subject to reserve requirements are gross demand Note.—Averages of daily figures. Balances with F.R. Banks are as deposits minus cash items in process of collection and demand balances of close of business; all other items (excluding total reserves held and due from domestic banks. excess reserves) are as of opening of business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 12 FEDERAL RESERVE BANKS □ MAY 1970 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1970 1970 1969 Apr. 29 Apr. 22 Apr. 15 Apr. 8 Apr. 1 Apr. 30 Mar. 31 Apr. 30 Assets 11,045 11,045 11,045 11,045 11,045 11,045 11 045 10,023 400 400 400 400 400 400 *400 196 195 189 190 187 198 188 204 Discounts and advances: 834 1,259 1,395 405 573 456 644 2,531 90 90 40 40 40 90 40 Acceptances: 58 58 58 58 58 57 52 52 Held under repurchase agreements........................... 65 58 30 49 90 Federal agency obligations—Held under repurchase agreements............................................................ 25 60 34 34 79 U.S. Govt, securities: Bought outright: Bills........................................................ 21,197 20,692 20,988 20,676 20,897 21,274 20,897 18,152 Certificates—Special....................................... Other......................................... Notes............................................................... 32,073 32,073 32,073 32,073 32,073 32,073 32,073 30,046 Bonds............................................................... 2,815 2,815 2,815 2,815 2,815 2,815 2,815 4,387 Total bought outright.................................... 156,085 155,580 155,876 155,564 155,785 156,162 55,785 52,585 Held under repurchase agreements............... 473 444 216 346 528 Total U.S. Govt, securities............................ 56,085 56,053 56,320 55,564 56,001 56,508 55,785 53,113 Total loans and securities.................................. 57,067 57,550 57,931 56,067 56,736 57 194 56,521 55,865 Cash items in process of collection.............................. *>10,298 *>11,324 *>11,511 *>10,017 *>10,470 *>10,050 9,205 9,912 Bank premises................................................ 117 118 118 118 116 117 116 115 Other assets: Denominated in foreign currencies........................... 1,101 1,155 1 ,155 1,156 1,171 1,101 1,169 1,960 IMF gold deposited 2.......................................... 210 210 210 210 210 210 210 233 All other.................................................... 823 771 727 689 662 811 644 657 Total assets..................................................... *81,257 *>82,768 *>83,286 *>79,892 *>80,997 *>81,126 79,498 78,969 Liabilities F.R. notes........................................................... 46,528 46,463 46,601 46,491 46,248 46,516 46,222 43,448 Deposits: Member bank reserves.............................................. *>22,578 *>23,922 *>24,287 *>21 ,940 *>22,865 *>23,049 22,495 24,377 1,367 U.S. Treasurer—86G9eneral 1a,c0c0o9u nt......1..,.0..5..7... ...........1..,784 1,192 941 950 Foreign............................................................ 224 189 152 144 212 204 200 130 Other: IMF gold deposit 2................................................ 210 210 210 210 210 210 210 233 All other.......................................................... 659 675 716 691 698 615 629 225 Total deposits......................................................... *>25,038 *>25,937 *>26,234 *>23,994 *>25,042 *>25,862 24,726 25,915 Deferred availability cash items.................................. 7,553 8,298 8,434 7,172 7,522 6,548 6,378 7,636 ........................ Oth5e0r8 liabilities5 0an7d accrued5 1d8ividends511 525 562 523 443 Total liabilities........................................................... *>79,627 *>81,205 *>81,787 *>78,168 *>79,337 *>79,488 77,849 77,442 Capital accounts Capital paid in............................................................. 682 681 681 681 681 682 681 650 Surplus........................................................................ 669 669 669 669 669 669 668 630 Other capital accounts.................................................. 279 213 149 374 310 287 300 247 Total liabilities and capital accounts............................ *>81,257 *>82,768 *>83,286 *>79,892 *>80,997 *>81,126 79,498 78,969 Contingent liability on acceptances purchased for foreign correspondents.............................................. 194 187 178 174 170 194 170 125 U.S. Govt, securities held in custody for foreign account....................................................................... 9,340 9,328 9,345 9,224 9,111 9,154 9,118 8,546 Federal Reserve Notes—-Federal Reserve Agents* Accounts F.R. notes outstanding (issued to Bank).. 49,221 49,261 49,259 49,133 49,099 49,233 49,106 46,383 Collateral held against notes outstanding: Gold certificate account......................... 3,327 3,327 3,327 3,292 3,292 3,327 3,292 3,522 Eligible paper........................................ U.S. Govt, securities............................... 47,910 47,910 47,900 47,900 47,900 47,910 47,900 45,020 Total collateral. 51,237 51,237 51,227 51,192 51,192 51,237 51,192 48,542 1 See note 7 on page A-5. 2 See note 1 (b) at top of page A-75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON APRIL 30, 1970 (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 l l a e 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 it n s y ­ Dallas F c S i r s a a c n n o ­ Assets 11,045 559 2,958 676 892 959 670 1,854 479 241 456 396 905 Special Drawing Rights certif. acct---- 400 23 93 23 33 36 22 70 15 7 15 14 49 738 80 179 28 60 49 128 26 19 11 34 26 98 198 10 25 7 21 11 27 27 12 7 12 13 26 Discounts and advances: Secured by U.S. Govt, securities.... 259 31 36 14 30 5 50 2 4 38 15 34 287 108 30 5 8 12 6 13 3 9 18 15 60 Acceptances: 57 57 Held under repurchase agreements.. 49 49 Federal agency obligations—Held 34 34 U.S. Govt, securities: Bought outright............................... 56,162 2,809 14,182 2,850 4,313 4,159 3,032 9,190 1,979 1,076 2,071 2,446 8,055 Held under repurchase agreements.. 346 346 57,194 2,948 14,734 2,855 4,335 4,201 3,043 9,253 1,984 1,089 2,127 2,476 8,149 Cash items in process of collection... 12,843 797 2,199 806 859 900 1,200 2,159 627 425 1,032 742 1,097 Bank premises...................................... 117 2 9 2 8 11 17 17 10 6 18 8 9 Other assets: Denominated in foreign currencies.. 1,101 53 1291 56 98 56 72 163 37 24 46 62 143 IMF gold deposited 2...................... 210 210 All other........................................... 811 52 203 41 60 61 42 129 29 18 30 34 112 Total assets.......................................... 84,657 4,524 20,901 4,494 6,366 6,284 5,221 13,698 3,212 1,828 3,770 3,771 10,588 Liabilities F R notes............................................ 47,254 2,715 11,109 2,670 3,850 4,231 2,523 8,302 1,797 823 1,765 1,717 5,752 Deposits: Member bank reserves..................... 23,049 902 6,412 1,000 1,553 1,149 1,470 3,397 824 576 1,031 1,306 3 429 U.S. Treasurer—General account.. 1,784 132 553 126 83 49 127 129 67 50 88 113 267 Foreign............................................. 204 9 360 10 17 10 13 29 7 4 8 11 26 Other: IMF gold deposit 2...................... 210 210 All other....................................... 615 562 i 1 id 2 ii * 3 2 3 18 Total deposits........................ ............ 25,862 1,043 7,797 1,137 1,654 1,218 1,612 3,568 898 633 1,129 1,433 3,740 Deferred availability cash items......... 9,341 662 1,404 576 676 706 954 1,494 442 322 789 510 806 Other liabilities and accrued dividends 562 27 153 28 43 39 29 87 19 14 20 24 79 Total liabilities.................................... 83,019 4,447 20,463 4,411 6,223 6,194 5,118 13,451 3,156 1,792 3,703 3,684 10,377 Capital accounts 682 32 182 34 61 35 45 101 23 15 29 38 87 669 32 177 34 60 34 43 99 23 15 28 37 87 Other capital accounts.................. 287 13 79 15 22 21 15 47 10 6 10 12 37 Total liabilities and capital accounts.. 84,657 4,524 20,901 4,494 6,366 6,284 5,221 13,698 3,212 1,828 3,770 3,771 10,588 Contingent liability on acceptances purchased for foreign correspond- 194 9 451 10 17 10 13 29 7 4 8 11 25 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to 49,233 2,818 11,644 2,738 4,016 4,359 2,676 8,580 1,876 854 1,821 1,827 6,024 Collateral held against notes out­ standing: Gold certificate account.................. 3,327 250 500 300 510 580 1,000 155 27 5 Eligible paper................................... U.S. Govt, securities....................... 47,910 2,600 11,400 2,620 3,750 3,860 2,800 7.950 1,780 845 1 ,875 1,930 6.500 Total collateral..................................... 51,237 2,850 11,900 2,920 4,260 4,440 2,800 8.950 1,935 872 1,875 1,935 6.500 1 After deducting $810 million participations of other Federal Reserve 4 After deducting $143 million participations of other Federal Reserve Banks Banks. 2 See note 1(b) to table at top of page A-75. 3 After deducting $144 million participations of other Federal Reserve Note.—Some figures for cash items in process of collection and Banks. for member bank reserves are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ MAY 1970 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities by maturity Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r a u o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f m r t r s i p , ty ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t o i u c f r r h t i s . ty tions 1969—Mar. 385 65 381 217 65 381 49 574 73 -574 Apr. 2,121 1,346 206 2,121 1,346 206 May 2,368 1,444 2,173 1,444 33 10,883 ’78* 10,895 June 4,586 3,993 7 4,586 3,993 7 July. 3,495 3,251 200 3,428 3,251 200 ’io’ 24 Aug. 2,201 1,658 2,201 1,658 407 4,514 Sept. 4,762 5,483 115 4,762 5,483 115 Oct., 5,145 3,704 5,016 3,704 1 -694 74 519 Nov. 2,915 735 148 2,852 735 148 28 1,177 29 -40 Dec. 1,250 1,029 386 1,250 1,029 386 1970—Jan.. 3,133 4,154 615 3,133 4,154 615 Feb. 801 395 100 801 395 100 -564 1,319 Mar. 2,657 2,577 119 2,657 2,577 119 154 -154 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal acceptances (U.S. Govt, Net agency 5-10 years Over 10 years securities) change obliga­ Month in U.S. tions Under Net c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa ro le s s s s G e it o c ie u v s r t, ­ p ( m u a n r g e e c r t n h e t r e a s e ­ s ) ­ e r O i n g u e h t t t ­ , m r a c e g h n e p r a n e e u s t t e r e s ­ ­ , change1 1969--Mar.... 26 20 2,044 1,854 130 5 — 4 7 137 Apr.... 1,929 1,790 708 54 5 43 810 May... 60 12 24’ 4,192 4,470 646 1 -5 -60 582 June... 1,312 1,562 336 -80 -5 -30 220 July.... ’23’ 10 560 560 44 -1 43 Aug___ -4,921 2,721 2,491 773 39 * 22 834 Sept.. .. 1,121 1,062 -777 -39 -3 -22 -841 Oct....... 52 175 2,655 2,715 1,381 17 4 1,402 Nov.... 3 -1,137 1,031 1,260 1,803 -17 8 1,794 Dec.. . . 3,336 3,336 -165 15 -150 1970—Jan... 1,201 1,009 -1,444 30 -7 26 -1,395 Feb.. -688 -66 4,407 4,599 114 -30 -1 -26 57 Mar.. 1,176 1,176 -38 -4 -43 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d io o d f Total P st o e u rl n in d g s s A ch u i s l t l r in ia g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i n t ld h d e e s r r s ­ f S r w an i c ss s 1968—Dec............. 2,061 1,444 8 3 433 165 1 1 4 3 1969—Jan.............. 1,883 1,443 41 2 25 294 67 1 1 4 6 Feb............. 1,938 1,450 13 1 25 318 125 1 4 1 Mar............ 2,059 1,396 23 1 461 160 13 1 4 1 Apr............. 1,960 1,245 44 1 50 436 163 15 1 4 • May............ 1,889 1,542 50 176 * 100 * * 15 1 4 1 June............ 1,834 1,564 50 115 * * * 15 1 86 2 July............ 1,670 1,383 50 24 * * 15 1 196 * Aug............. 1,929 1,571 224 * * 15 1 114 3 Sept............ 2,330 1,693 204 • * • 315 1 114 2 Oct............. 1,823 1,494 1 * 7 313 1 2 5 Nov............ 1,370 1,273 1 * 60 6 1 2 27 Dec............. 1,967 1,575 1 * 199 60 125 1 3 4 1970—Jan.............. 975 605 1 * 100 60 201 1 3 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ FEDERAL RESERVE BANKS; BANK DEBITS A 15 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1970 1970 1969 Apr. 29 Apr. 22 Apr. 15 Apr. 8 Apr. 1 Apr. 30 Mar. 31 Apr. 30 Discounts and advances—'Total................................... 924 1,349 1,435 445 613 546 684 2,532 Within 15 days............................................................ 828 1,254 1,391 398 565 449 639 2,522 16 days to 90 days.................................................... 96 45 44 47 48 97 45 10 91 days to 1 year........................................................ 50 Acceptances—Total....................................................... 58 123 116 58 88 106 52 142 Within 15 days............................................................ 15 82 76 17 45 64 15 106 16 days to 90 days..................................................... 43 41 40 41 43 42 37 36 91 days to 1 year........................................................ U.S. Government securities—Total.............................. 56,085 56,078 56,380 55,564 56,035 56,542 55,785 53,192 Within 15 days*.......................................................... 3,362 3,447 3,582 2,500 2,741 13,836 1,673 3,155 16 days to 90 days...................................................... 20,880 21,246 21,568 22,019 22,266 9,523 22,606 8,660 91 days to 1 year........................................................ 10,302 9,844 9,689 9,504 9,487 11,642 9,965 8,857 Over 1 year to 5 years................................................ 13,976 13,976 13,976 13,976 13,976 13,976 13,976 18,507 Over 5 years to 10 years............................................ 6,953 6,953 6,953 6,953 6,953 6,953 6,953 13,376 Over 10 years............................................................. 612 612 612 612 612 612 612 637 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period Total Leading SMSA’s T S o M ta S l A 23 ’s 2 226 Total Leading SMSA’s T S o M ta S l A 23 ’s 2 226 SM 23 S 3 A’s N.Y. 6 others2 N (e . x Y cl . . ) SM oth S e A r ’s SM 23 S 3 A’s N.Y. 6 others2 N (e . x Y cl . . ) SM oth S e A r ’s 1969—Mar.r........................... 8,723.5 3,882.8 1,974.3 4,840.7 2,866.5 66.0 142.6 64.5 46.1 38.5 Apr.r........................... 8,887.6 3,902.0 2,028.9 4,985.7 2,956.7 66.7 140.9 66.3 47.2 39.4 Mayr........................... 9,147.7 4,097.6 2,083.2 5,050.1 2,966.8 68.2 147.3 67.1 47.5 39.5 Juner........................... 9,384.8 4,155.7 2,164.4 5,229.1 3,064.7 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 71.9 49.4 40.3 Aug.............................. 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.r........................... 9,737.2 4,311.5 2,249.6 5,425.7 3,176.2 72.3 153.5 73.0 50.9 41.9 Oct............................... 9,527.0 4,127.6 2,254.7 5,399.3 3,144.7 70.8 148.8 72.9 50.6 41.5 Nov.r........................... 9,484.4 4,207.5 2,224.8 5,276.9 3,052.1 70.5 151.6 71.7 49.4 40.3 Dec.............................. 9,560.4 4,198.2 2,212.9 5,362.2 3,149.3 69.4 145.7 69.6 49.2 40.8 1970—Jan............................... 9,547.5 4,054.0 2,277.4 5,493.5 3,216.1 69.4 139.9 71.6 50.6 41.9 Feb.r........................... 9,794.1 4,232.1 2,309.1 5,561.9 3,252.8 72.4 148.8 74.2 52.0 42.9 Mar.............................. 9,834.2 4,336.7 2,281.7 5,497.5 3,215.8 70.6 145.7 71.8 50.2 41.3 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 n MAY 1970 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939..................... 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941..................... 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945..................... 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947..................... 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950..................... 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955..................... 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 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..................... 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—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 Dec............ 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970—Jan............ 51,901 36,120 5,986 2,074 136 2,872 8,425 16,626 15,781 4,380 10,889 231 273 3 5 Feb............ 52,032 36,227 5,988 2,060 136 2,862 8,482 16,699 15,805 4,384 10,914 229 271 3 5 Mar........... 52,701 36,780 6,028 2,086 136 2,915 8,622 16,993 15,921 4,418 10,999 228 269 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 dollars) Held in the Treasury Currency in circulation 1 Total out­ Held by standing, As security For F.R. 1970 1969 Kind of currency M 1 a 9 r. 7 0 31, g a o s g l i d a lv in a er n s t 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 d n k t s s Mar. Feb. Mar. certificates Agents 31 28 31 Gold................................................................................ 11,367 (11,045) 2322 Gold certificates............................................................. (11,045) 311,044 1 Federal Reserve notes.................................................... 49,106 143 2,884 46,079 45,450 43,218 Treasury currency—Total.............................................. 6,911 101 187 6,623 6,583 6,256 Standard silver dollars.............................................. 485 3 482 482 482 Fractional Coin.......................................................... 5,802 69 187 5,546 5,506 5,163 United States notes.................................................... 323 29 293 293 305 In process of retirement4.......................................... 302 301 302 306 Total—March 31, 1970................................................. 567,384 (11.045) 566 11.044 3,072 52,701 February 28, 1970............................................. 567,393 (11.045) 580 11.044 3,736 52,032 March 31, 1969.................................................. 563,560 (10,025) 684 10,023 3,379 49,475 1 Outside Treasury and F.R. Banks. Includes any paper currency held 5 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 $210 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 Gold Certificate reserves and security features, see the Circulation Statement or the Aug. Fund—Board of Governors, FRS. 1961 Bulletin, p. 936. 4 Redeemable from the general fund of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 i Total component deposit justed 1 deposits i component component 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—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 June................................................. 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 Aug.................................................. 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 45.9 153.7 194.1 206.0 46.9 159.1 192.4 5.5 1970—Jan................................................... 201.1 46.1 155.0 192.1 207.1 46.1 161.1 191.7 4.7 Feb................................................... 199.3 46.4 153.0 192.0 197.8 45.9 151.9 192.0 7.1 Mar.................................................. 201.5 46.7 154.8 194.3 199.7 46.3 153.4 194.9 6.9 Apr.**............................................... 203.3 47.1 156.2 197.9 204.3 46.7 157.6 198.3 5.4 Week ending— 1970—Mar. 4.......................................... 200.6 46.5 154.2 193.0 198.5 46.0 152.6 193.2 6.9 11.......................................... 200.0 46.6 153.4 193.3 198.5 46.5 152.0 193.9 6.5 18.......................................... 199.9 46.7 153.2 194.1 199.3 46.4 152.9 194.7 6.3 25.......................................... 200.2 46.8 153.5 194.8 197.3 46.2 151.2 195.4 7.7 Apr. 1.......................................... 206.8 46.9 159.9 196.0 204.9 46.2 158.7 196.8 7.1 8.......................................... 204.7 46.9 157.8 197.2 204.6 46.8 157.8 197.7 5.7 15.......................................... 203.7 47.1 156.6 197.5 205.7 46.8 158.9 197.9 3.6 22.......................................... 202.5 47.1 155.4 198.2 205.1 46.6 158.5 198.4 6.2 29 p........................................ 201.8 47.3 154.5 198.8 201.6 46.4 155.2 199.0 5.5 1 At all commercial banks. and F.R. float; (2) foreign demand balances at F.R. Banks; and (3) cur­ rency 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.1 Deposits subject to reserve requirements2 S.A. N.S.A. Period Total bo N rro o w n­ ed Required Total sa T a v i n i m n d g e s d P e r m iv a a n te d d G e U m o .S v an t . . d Total sa T a v i n i m n d g e s d P e r m iv a a n te d d G e U m o . v S an t . . d 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—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............................... 27.93 26.81 27.71 285.8 151.5 129.4 4.9 288.6 149.7 134.4 4.6 1970—Jan................................ 28.00 26.97 27.82 284.8 149.4 130.1 5.3 288.5 148.9 135.6 3.9 Feb............................... 27.72 26.62 27.52 282.9 148.8 128.5 5.6 282.3 148.8 127.4 6.1 Mar............................... 27.72 26.78 27.54 286.2 150.6 129.8 5.9 285.4 151.0 128.5 5.8 Apr.p............................ 28.19 27.32 28.05 290.2 153.5 131.4 5.3 290.7 153.8 132.4 4.5 1 Averages of daily figures. Data reflect percentage reserve require­ inated from time deposits for reserve purposes. Jan. 1969 data are not ments made effective Apr. 23, 1969. Required reserves are based on comparable with earlier data due to the withdrawal from the system on average deposits with a 2-week lag. Jan. 2, 1969, of a large member bank* 2 Averages of daily figures. Deposits subject to reserve requirements in­ clude total time and savings deposits and net demand deposits as defined Note.—Due to changes in Regulations M and D, 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 a MAY 1970 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Gold Bank credit assets, stock Treas­ net— Date Sp a e n c d i al c u u r r y ­ U.S. Treasury securities T lia o b ta il l ­ Total Cap a i n t d al D c R c r e a i a r g t t w e i h f s i t i n ­ s 1 g s r t o e i a n n u n g c t d ­ y ­ Total n L e o t a 2 n > s , 3 Total s C a a v o n i m n d g l. s R F B e e a d s n e e r k r v a s e l Other4 r O s i e t t i c h e u e s ­ r 3 ca i a n p t n i e i e t d t s al, c d u e r a p r n o e d n si c t y s c m o n a u i c e n s ­ t c ts . , 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—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 305................. 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 ................... 10.400 6,800 51S4e.3p0t.0 2 4321.200 110,700 56.700 53.900 82.400 531 400 465,200 66,200 Oct. 29 p................. 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. 31p................. 10.400 6,800 530,400 333,700 115,000 57,800 57,200 81,700 547.600 483,100 64.500 1970—Jan. 28p................. 11,600 6.900 514.600 322,200 111,400 55,800 55.600 81,000 533,100 466.400 66.700 Feb. 25p................. 11,700 6.900 513,100 321.800 110,000 54.300 55.700 81.300 531.600 464,000 67.700 Mar. 15 p................. 11,800 6.900 517.300 323,900 109,900 54.300 55.600 83.400 536,000 469,900 66,000 Apr. 29p................. 11,800 6.900 520,900 324,500 111,200 55,100 56,100 85,200 539.600 474.400 65,200 DETAILS OF DEPOSITS AND CURRENCY Money supply Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S. Government Date Total o b r u C e a t n n u s c i k r d y ­ s e d ju e m D p a s a o t d e e n s ­ ­ d d it 7 s Total o b r u C e a t n n u s c i k r d y ­ s e d ju m e D p a s a t o d e e n s ­ ­ d d it 7 s Total b m C a e n o r k c m s ia ­ l 2 b M sa a v n u i k t n u s g a s l 8 S P t a S e o v y m s i s t n a ­ 4 g l s e n F i e g o t n r­ 9 , T h c i u r o n a e r g l 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 1,123 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—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 1 ,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 305... 195,300 43,700 151,600 193,996 44,478 149,518 266,171 199,516 66,655 2,402 633 5,997 1,258 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 1,200 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 1,000 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 1 ,200 Oct. 29p... 194,100 44,400 149,700 195,500 44,500 151,000 259,200 192,700 66,500 2,300 700 6,400 1,100 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 p. .. 205,700 45,300 160,400 213,600 46,300 167,300 259,600 192,400 67,200 2,700 700 5,200 1,300 1970—Jan. 28*\. 195,500 45,300 150,200 198,100 44,700 153,400 257,300 190,200 67,100 2,500 600 6,500 1,300 Feb. 25p. .. 194,100 45,300 148,800 193,200 44,800 148,400 259,100 191,700 67,400 2,600 600 7,500 900 Mar. 25p. .. 199,200 45,900 153,300 196,100 45,400 150,800 262,800 194,800 68,000 2.700 600 6,300 1,500 Apr. 29p. .. 197,200 46,300 150,900 197,300 45,900 151,400 266,200 197,800 68,400 2,600 600 6,400 1,400 1 Includes Special Drawing Rights certificates beginning January 1970. 8 Includes relatively small amounts of demand deposits. Beginning with 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits June 1961, also includes certain accounts previously classified as other lia­ accumulated for payment of personal loans” were excluded from “Time bilities. deposits” and deducted from “Loans” at all commercial banks. These 9 Reclassification of deposits of foreign central banks in May 1961 re­ changes resulted from a change in Federal Reserve regulations. These duced this item by $1,900 million ($1,500 million to time deposits and $400 hypothecated deposits are shown in a table on p. A-23. million to demand deposits). 3 See note 2 at bottom of p. A-22. 4 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 5 Beginning June 30, 1969, figures for commercial banks reflect (1) Note.—For back figures and descriptions of the consolidated condition inclusion of consolidated reports (including figures for all bank-premises statement and the seasonally adjusted series on currency outside banks and subsidiaries and other significant majority-owned domestic subsidiaries) demand deposits adjusted, see “Banks and the Monetary System,” Section and (2) reporting of figures for total loans and for individual categories of 1 of Supplement to Banking and Monetary Statistics, 1962, and Bulletins securities on a gross basis—that is, before deduction of valuation reserves. for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti­ See also note 1. mated and are rounded to the nearest $100 million. 6 Series began in 1946; data are available only for last Wed. of month. For description of substantive changes in official call reports of 7 Other than interbank and U.S. Govt., less cash items in process of condition beginning June 1969, see Bulletin for August 1969, pp. collection. 642-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ COMMERCIAL BANKS A 19 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank 3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks 1. 2 U.S. capital De­ Treas­ Other2 ac­ mand Time Time1 ury counts 4 U.S. Other Govt. All commercial banks: 1941—Dec. 31.............. 50,746 21,714 21,808 7,22526,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31.............. 124,019 26,083 90,606 7,331 34,806 160,312150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 315............ 116,284 38,057 69,221 9,00637,502 155,377144,103 12,792 240 1,343 94,367 35,360 6510,059 14,181 1966—Dec. 31............. 322,661 217,726 56,16348,77269,119403,368352,28719,770 967 4,992 167,751 158,806 4,85932,054 13,767 1967—Dec. 30............. 359,903235,954 62,47361,47777,928451,012395,00821,883 1,314 5,234184,066182,511 5,77734,384 13,722 1968—Dec. 31............. 401,262265,259 64,46671,53783,752500,657434,02324,747 1,211 5,010 199,901203,154 8,89937,006 13,679 1969—Apr. 30.............. 400,750270,470 57,98072,30081,110498,200417,00021,230 960 8,950 184,290201,570 15,78038,000 13,669 May 28.............. 399,920272,720 55,38071,82076,700493,250408,52020,990 950 6,530 178,200201,85017,49038,090 13,668 June 306............ 410,279283,850 54,04472,38588,209516,752425,36325,187 882 5,639 193,787199,868 14,74038,823 13,673 July 30.............. 409,200283,240 54,70071,26074,370501,650404,04021,060 860 5,490180,260196,37019,45038,480 13,682 Aug.27.............. 405,860280,680 54,33070,85076,200499,750401,77021,410 870 4,860 179,840194,79021,27038,660 13,683 Sept.24.............. 408,670284,300 53,20071,17075,910503,590404,16021,260 810 7,610 180,550193,93021,61038,860 13,681 Oct. 29*............ 408,470283,970 54,31070,19076,960504,180406,06022,190 880 6,160183,810193,02021,24039,310 13,683 Nov 26*............ 411,580286,230 54,85070,50082,340512,970411,80023,190 680 6,560189,400191,97021,96039,450 13,684 Dec. 31*............ 418,810293,630 54,57070,61089,880527,730433,35027,230 670 4,960207,800192,69017,80039,850 13,662 1970—Jan. 28*............ 408,440285,970 52,50069,97077.280504,080404,29021,570 660 6,270185,340190,45022,62039,860 13,662 Feb. 25*............ 406,460285,320 50,95070,19078,750504,070404,27022,260 660 7,320182,140191,89022,62040,070 13,665 Mar. 25*............ 409,960286,860 51,07072,03076,230505,710405,89021,830 610 6,080182,340195,03022,84040,200 13,664 Apr. 29*............ 414,130288,670 51,81073,65078,220512,280411,06021,620 690 6,180184,540198,03023,50040,430 13,664 Members of F.R. System: 1941—Dec. 31.............. 43,521 18,021 19,539 5,96123,123 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.............. 107,183 22,775 78,338 6,07029,845 138,304129,67013,576 6422,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31.............. 97,846 32,628 57,914 7,30432,845 132,060122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 263,687 182,802 41,92438,96060,738334,559291,063 18,788 794 4,432 138,218 128,831 4,61826,278 6,150 1967—Dec. 30.............. 293,120196,849 46,95649,31568,946373,584326,03320,811 1,169 4,631 151,980147,442 5,37028,098 6,071 1968—Dec. 31.............. 325,086220,285 47,881 56,92073,756412,541 355,41423,519 1,061 4,309 163,920162,605 8,45830,060 5,978 1969—Apr. 30.............. 322,920223,609 42,37256,93972,398409,340339,06220,260 796 7,981 150,719 159,306 14,88830,699 5,955 May 28.............. 321,197224,696 40,17756,32468,479403,971 330,43320,054 790 5,405 145,261 158,923 16,46730,752 5,944 June 306............ 329,707233,960 39,38256,36478,615424,278344,46624,097 722 4,874 158,287156,485 13,99931,317 5,936 July 30.............. 328,560233,196 39,96255,40266,159410,401 324,99320,079 699 4,562 146,373 153,28018,14531,090 5,925 Aug. 27.............. 325,413230,654 39,75455,00567,843408,644323,06320,433 707 4,046 146,139151,738 19,92531,234 5,919 Sept. 24.............. 327,611233,744 38,64355,22467,504411,501 324,78020,234 683 6,576 146,468 150,81920,32231,374 5,910 Oct. 29.............. 327,288233,260 39,72554,30368,596412,130326,76821,182 721 5,438 149,424150,003 19,89331,694 5,901 Nov. 26.............. 330,002235,055 40,27654,671 73,107419,571 331,35022,138 522 5,666153,874149,15020,61431,793 5,893 Dec. 31.............. 336,392241,594 40,03854,76079,313432,310349,99725,898 514 4,078169,781 149,72616,95732,110 5,871 1970—Jan. 28.............. 327,368234,860 38,32854,18068,449411,828324,60520,560 497 5,420150,363 147,76521,26332,078 5,853 Feb. 25.............. 325,777234,213 37,11054,45469,806412,036324,93721,244 496 6,429147,932148,83621,23832,242 5,850 Mar. 25*............ 328,556235,138 37,34056,07867,594413,148326,02820,845 454 5,100148,270151,35921,58232,343 5,841 Apr. 29*............ 332,071 236,410 38,19257,46969,174418,571 330,13620,608 531 5,251 149,940153,80622,35032,528 5,841 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 6 866 12,051 807 1,648 36 1945—Dec. 31.............. 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31.............. 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31.............. 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30.............. 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31.............. 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Apr. 30.............. 55,607 43,237 4,616 7,75422,610 82,395 59,841 8,788 419 2,080 31,513 17,041 4,267 6,240 12 May 54,847 43,174 4,099 7,57420,784 80,195 56,188 8,825 414 826 29,577 16,546 4,921 6,217 12 June 306............ 57,885 46,232 4,445 7,20826,223 89,283 62,534 11,233 405 983 34,453 15,460 3,671 6,283 12 July 30.............. 57,645 45,922 4,893 6,830 19,776 82,327 54,066 8,519 369 821 29,732 14,625 5,0U 6,241 12 Aug. 56,571 44,914 4,904 6,75320,574 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 6,937 19,165 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 7,021 22,426 88,205 62,46410,431 237 694 36,145 14,957 4,388 6,377 12 1970—Jan. 28.............. 57,069 45,722 4,794 6,55320,535 82,673 56,240 8,697 236 1,140 31,730 14,437 4,930 6,248 12 Feb. 25............. 56,568 45,523 4,319 6,72621,808 83,599 57,251 9,393 216 1,484 31,497 14,661 5,068 6,304 12 Mar. 25............. 57,225 45,505 4,408 7,31221,809 84,348 58,076 9,585 211 844 32,203 15.233 5,467 6,272 12 Apr. 29............. 58,010 45,286 5,091 7,63320,778 84,145 57,536 8,927 245 968 32,116 15,280 5,756 6,290 12 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS □ MAY 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 te ank Total Lo 1 a ,2 ns T U r u e S r .S a y e s . c ­ urit O ie t s h 2 er a C ss a e s t h s 3 c c b o T a i a u l a l p o i i n n c a t i t i d ­ t a ­ t e a s l s l 4 Total 3 m D I a n e n t ­ e d rba T n i k m 3 e U. D S. em O an th d er Time1 r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l b N a b u o n e m f k r s ­ Other Govt. Reserve city member (cont.): City of Chicago: 7, 8 1941—Dec. 31.................. 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945—Dec. 31.................. 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947—Dec. 31.................. 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1966—Dec. 31.................. 11,802 8,756 1,545 1,502 2,638 14,935 12,673 1,433 25 310 6,008 4,898 484 1,199 11 1967—Dec. 30.................. 12,744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1,346 10 1968—Dec. 31................. 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1,535 21 257 6,542 6,171 682 1,433 9 1969—Apr. 30.................. 14,004 10,218 1,592 2,194 2,835 17,635 13,201 1,170 17 615 5,901 5,498 1,319 1,460 9 May 28................. 13,646 9,996 1,473 2,177 3,067 17,559 12,662 1,190 17 233 5,886 5,336 1,682 1,446 9 June 306................ 14,321 10,573 1,616 2,132 2,716 17,869 13,035 1,368 25 274 6,192 5,176 1,230 1,492 9 July 30.................. 14,238 10,630 1,556 2,052 2,601 17,635 12,042 1,192 15 242 5,686 4,907 1,354 1,455 9 Aug. 27.................. 13,832 10,373 1,473 1,986 2,698 17,344 11,779 1,170 19 149 5,630 4,811 1,717 1,483 9 Sept. 24................. 14,006 10,564 1,471 1,971 2,925 17,784 11,806 1,189 24 349 5,555 4,689 2,092 1,493 9 Oct. 29.................. 13,945 10,341 1,667 1,937 2,604 17,410 11,641 1,153 27 334 5,543 4,584 2,064 1,492 9 Nov. 26................. 14,022 10,331 1,685 2,006 2,942 17,824 11,958 1,330 21 250 5,866 4,491 1,985 1,500 9 Dec. 31................. 14,369 10,773 1,565 2,031 2,855 17,988 13,317 1,732 27 175 6,769 4,614 1,290 1,516 9 1970—Jan. 28.................. 13,684 10,376 1,351 1,957 2,858 17,287 12,024 1,205 32 336 5,903 4,548 1,783 1,520 9 Feb. 25................. 14,102 10,388 1,578 2,136 3,039 17,966 12,205 1,280 42 442 5,831 4,610 2,297 1,522 9 Mar. 25................. 14,258 10,451 1,571 2,236 2,701 17,923 12,002 1,232 41 258 5,762 4,709 2,425 1,530 9 Apr. 29................. 14,522 10,530 1,688 2,304 2,760 18,154 12,299 1,234 41 233 5,999 4,792 2,503 1,535 9 Other reserve city: 7,8 1941—Dec. 31................. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31................. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31................. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,99011,423 1 2,844 353 1966—Dec. 31................. 95,831 69,464 13,040 13,32624,228 123,863 108,804 8,593 233 1,633 49,00449,341 1,952 9,471 169 1967—Dec. 30................. 105,724 73,571 14,66717,48726,867 136,626120,485 9,374 310 1,715 53,28855,798 2,555 10,032 163 1968—Dec. 31................. 119,006 83,634 15,03620,33728,136 151,957132,305 10,181 307 1,884 57,44962,484 4,239 10,684 161 1969—Apr. 30................. 117,795 84,932 12,85720,00625,890148,544124,498 8,062 249 3,457 51,73560,995 7,522 10,982 161 May 28................. 116,902 85,316 11,98219,60424,557 146,119 121,240 7,882 248 2,219 50,04360,848 7,819 11,014 161 June 306................ 119,789 88,582 11,635 19,57227,265 152,827125,157 9,028 159 2,171 54,079 59,721 7,311 11,166 159 July 30................. 118,838 87,753 11,716 19,36924,037 148,510118,489 8,108 204 1,735 50,33358,109 9,173 11,194 159 Aug. 27.................. 117,449 86,509 11,81019,13024,644 147,680116,983 8,224 204 1,633 49,74057,182 10,069 11,219 159 Sept. 24................. 117,698 87,577 11,110 19,01125,301 148,736117,685 8,329 217 2,963 49,66356,513 10,23611,271 159 Oct. 29................. 117,954 87,388 11,79418,77223,979 147,722117,701 8,631 246 2,411 50,78055,633 9,506 11,391 158 Nov. 26................. 118,287 87,908 11,583 18,79626,601 150,766118,724 8,853 167 2,213 52,60354,888 10,51811,381 158 Dec. 31................. 120,976 90,447 11,95818,571 29,968 156,951 126,14710,687 164 1,541 58,90054,855 9,58811,492 158 1970—Jan. 28................. 118,177 88,298 11,255 18,62424,714148,856115,408 8,327 143 2,350 50,62553,963 11,84611,505 158 Feb. 25................. 117,265 87,839 10,775 18,651 24,467 147,785 115,117 8,231 152 2,823 49,82354,08811,10411,549 158 Mar. 25'............... 117,942 87,645 11,07819,21923,272 147,381 114,763 7,757 116 2,148 49,85654,88611,18011,6111 158 Apr. 29................. 119,213 88,093 11,29819,82225,042150,648117,118 8,113 159 2,304 50,30656,23611,78811,715 158 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 4 1,982 6,219 1945—Dec. 31................. 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31................. 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1966—Dec. 31................. 109,518 68,641 22,419 18,458 19,004131,338 117,749 2,392 69 1,474 56,67257,144 30810,309 5,958 1967—Dec. 30................. 122,511 74,995 24,68922,82620,334 146,052131,156 2,766 96 1,564 61,16165,569 55211,005 5,886 1968—Dec. 31................. 134,759 83,397 24,99826,36422,664 161,122 144,682 2,839 111 1,281 66,57873,873 80411,807 5,796 1969—Apr. 30................. 135,514 85,222 23,30726,98521,063 160,766141,522 2,240 111 1,829 61,57075,772 1,78012,017 5,773 May 28................. 135,802 86,210 22,62326,96920,071 160,098 140,343 2,157 111 2,127 59,75576,193 2,045 12,075 5,762 June 306................ 137,711 88,573 21,68627,45222,410 164,299143,739 2,515 86 1,448 63,56276,129 1,78712,376 5,756 July 30................. 137,839 88,891 21,79727,151 19,745161,929 140,396 2,260 111 1,764 60,62275,639 2,607 12,200 5,745 Aug. 27................. 137,561 88,858 21,56727,136 19,927161,665139,763 2,256 111 1,542 60,27975,575 2,680 12,257 5,739 Sept. 24................. 138,629 89,796 21,52827,30520,113 163,495 141,016 2,370 111 1,966 60,96475,605 2,572 12,354 5,730 Oct. 29................. 138,484 89,744 21,54227,19820,195 163,194140,714 2,325 111 1,365 61,54875,365 2,684 12,530 5,722 Nov. 26.................. 139,184 90,567 21,521 27,09621,719 165,576142,737 2,415 86 1,695 63,49675,045 2,691 12,594 5,714 Dec. 31................. 140,710 92,105 21,46827,13724,064169,166148,069 3,048 86 1,668 67,96775,300 1,691 12,725 5,692 1970—Jan. 28................. 138,438 90,464 20,92827,04620,342163,012140,933 2,331 86 1,594 62,10574,817 2,70412,805 5,674 Feb. 25................. 137,842 90,463 20,43826,941 20,492162,686140,364 2,340 86 1,680 60,781 75,477 2,76912,867 5,671 Mar. 25................. 139,131 91,537 20,28327,311 19,812163,496141,187 2,271 86 1,850 60,44976,531 2,51012,930 5,662 Apr. 29*............... 140,326 92,501 20,11527,71020,594165,624143,183 2,334 86 1,746 61,51977,498 2,303 12,988 5,662 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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— F C R la S s s m ifi e c m at b io er n s h b i y n Securities Cash T l o ia ta ­ l Interbank3 Other Bor­ Total Num­ a i n n d su F ra D nc IC e Total Lo 1, a 2 ns T U re .S as . ­ Oth 2 er assets3 c b a i a a l p i n c t i d i ­ t e a s l Total3 m D a e n ­ d Time Demand Tim l e r i o n w gs ­ c c a o a p u c i n ­ ta ts l ba b o n e f k r s ury 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,(5 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,J3 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1961—Dec. 30.. 213,904 124,348 66,026 23,531 56,086276,600247,176 17,737 333 5,934 141,050 82,122 462 22,089 13,108 1962—Dec. 28. .234,243 139,449 65,891 28,903 53,702295,093260,609 15,844 402 6,815 140,169 97,380 3,584 23,712 13,119 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337310,730273,657 15,077 443 6,712 140,702110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593200,109 59,120 44,364 60,327374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473217,379 55,788 48,307 68,515401,409351,438 19,497 881 4,975 166,689159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536235,502 62,094 60,941 77,348448,878394,11821,598 1,258 5,219 182,984183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566264,600 64,028 70,938 83,061498,071432,71924,427 1,155 5,000 198,535203,602 8,675 36,530 13,481 1969—June 306. 408,620283,199 53,723 71,697 87,311 513,960423,95724,889 800 5,624 192,357200,287 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 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,:>29 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1961—Dec. 30.. 116,402 67,309 36,088 13,006 31,078 150,809 135,511 10,359 104 3,315 76,292 45,441 225 11,875 4,513 1962—Dec. 28.. 127,254 75,548 35,663 16,042 29,684 160,657142,825 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 28,635 170,233 150,823 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 34,064190,289 169,61510,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880219,744 193,86012,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690235,996206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,308 35,348 46,634263,375231,374 13,877 652 3,142 106,019 107,684 3,478 19,730 4,758 1968—Dec. 31.. 236,130 159,257 35,300 41,572 50,953296,594257,884 15,117 657 3,090 116,422122,597 5,923 21,524 4,716 1969—June 306. 242,241 170,834 29,481 41,927 52,271 305,800251,489 14,324 437 3,534 113,134120,060 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,' 111 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 22,312111,188 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 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 306. 88,346 64,007 9,902 14,437 26,344 119,358 93,858 9,773 285 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 2:44 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1961—Dec. 30.. 34,320 18,123 11,972 4,225 6,508 41,504 37,560 543 30 553 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 43 729 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 61 726 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 70 649 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 83 618 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 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31,004 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 94 691 34,615 40,060 217 6,482 7,504 1969—June 306. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 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 □ MAY 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 FRS a i n n m d su e F r m a D n b c I e C e rs hip Total Lo 1 a ,2 ns T U re .S as . ­ Oth 2 er a C ss a e s t h s3 c b a i a l a l p i n i c a t i d i ­ t ­ e a s l Total3 m D a e n ­ d Time Demand Tim l e B r i o n o w g r s ­ ­ c c T a o a p o u c i t n ­ t a a t l s l N ba b u o n e m f k r s ­ ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31.. 1,457 455 761 241 763 2,283 1,872 3719 1,2>91 253 13 329 852 1945—Dec. 31.. 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 313. 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 306. 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 1,266 3,431 10,992 9,573 45\7 5,:>04 3,613 18 1,288 7,662 1945—Dec. 31. . 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947—Dec. 31. . 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 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 .",8,649 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 306. 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 Accumulated for 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 figures for 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

MAY 1970 a COMMERCIAL BANKS A 23 LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total 1,2 Loans i,2 Total i,2 Loans1,2 U.S. Other2 U.S. Other2 Govt. Govt. 1960—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 Dec. 31............................................................... 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969—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)3......................................... 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 71.3 397.5 270.3 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. 29p.............................................................. 396.8 273.3 53.4 70.1 396.5 272.0 54.3 70.2 Nov. 26p.............................................................. 399.7 275.5 53.2 71.0 399.2 273.8 54.9 70.5 Dec. 31 p.............................................................. 398.6 276.2 51.8 70.5 407.8 282.6 54.6 70.6 1970—Jan. 28?............................................................. 396.1 275.3 49.9 70.9 395.1 272.7 52.5 70.0 Feb. 25*.............................................................. 397.2 277.1 49.4 70.8 393.3 272.1 51.0 70.2 Mar. 25 *............................................................. r398.4 r276.2 49.8 72.4 r396.6 r273.5 51.1 72.0 Apr. 29 p.............................................................. 400.4 275.2 51.9 73.4 400.4 275.0 51.8 73.7 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 balances accumulated as was done previously. For a description of the revision, see Aug. 1969 for payment of personal loans were deducted as a result of a change in Bulletin, pp. 642-46. Federal Reserve regulations. Beginning June 30, 1966, CCC certificates of interest and Export- Note.—For monthly data 1948-68, see Aug. 1968 Bulletin, pp. A-94 Import Bank portfolio fund participation certificates totaling an estimated —A-97. For a description of the seasonally adjusted series see the follow­ $1 billion are included in “Other securities” rather than “Other loans.” ing Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. 3 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 1.283 1,216 1,150 All member—Cont. Insured................................... 1.223 1.283 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............................... 941 979 937 881 282 304 278 268 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 rounding. 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 □ MAY 1970 LOANS AND INVESTMENTS BY CUSS OF BANK (In millions of dollars) Other loans 1 Investments For To U.S. Treasury b C a l n a k s s a o nd f lo T a a o n n t d a s l i f F u er e n a d d l ­ s C m o e m r­ ­ Agri- o p s r u e r c c c u a h r r a r it y s i i i e n n s g g in f s in ti a tu n t c i i o a n l s Real Ot t h o er, securities 6 S a t n a d te call date invest­ sold, Total cial cul- in- Other local Other ments etc.2 3,4 a i n n d ­ t a u l r- 5 b T ro o ­ v d i i d - - Bills g se o c v u t ­ . r s it e i c e u s ­ 5 d tr u ia s l ­ k a e n r d s ot T he o rs BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total:2 1947—Dec. 31.. 116,284 38,057 18,1671,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1967—Dec. 30..361,186 4,057233,18088,4439,2706,2153,780 1,902 12,53558,52551,5855,65962,473 n.a. n.a. 50,006 11,471 1968—Dec. 31..402,477 6,747259,72798,3579,7186,6254,108 2,206 13,72965,13758,3376,72464,466 n.a. n.a. 58,570 12.967 1969—June 3010411,429 7,226277,773 104,403 10,5525,3064,212 2,587 13,74668,41961,5407,00954,044 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 1,3143,1643,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,0121,610 8231,190 114 9,266 5,654 91467,941 9,676 5,91852,347 5,1293,621 1967—Dec. 30..358,536 3,919231,58387,8709,2506,0173,719 1,848 12,39458,20951,3955,60662,094 13,13418,62431,623 49,737 11,204 1968—Dec. 31..399,566 6,526258,07497,741 9,7006,4094,063 2,145 13,62164,80458,1426,65564,028 n.a. n.a. n.a. 58,288 12,650 1969—June 30io408,620 7,067276,132103,723 10,5345,1804,168 2,541 13,60568,10461,3376,941 53,723 n.a. n.a. n.a.59,746 11,950 Member, total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,1333.378 47 3,455 1,900 1,057 78,338 19,26014,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1967—Dec. 30..294,098 3,438194,38979,3445,7025,8203,099 1,754 11,58745,52840,4545,19046,956 9,633 13,65724,614 41,5207,795 1968—Dec. 31..326,023 5,551215,671 87,8195,9216,1743.379 2,012 12,79750,46145,4046,18947,881 n.a. n.a. n.a. 48,4238,498 1969—June 3010330,587 5,444229,39792,9266,3484,9963,473 2,386 12,82052,55647,4576,43539,382 n.a. n.a. n.a.48,6007,764 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 2,453 ,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,642 558 9,772 638 604 1967—Dec. 30.. 52,141 415 38,64423,183 3,874 831 914 2,990 3,431 3,0991,285 6,027 1,897 1,962 2,303 6,318 737 1968—Dec. 31.. 57,047 747 42,22225,258 3,803 903 1,099 3,426 3,619 3,485 1,694 5,984 n.a. n.a. 7,233 861 1969—June 30io 57,885 992 45,24026,469 3,410 887 1,218 3,819 4,041 3,706 1,676 4,445 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.. 14,274 312 9,974 6,118 535 253 205 1,219 738 848 281 1,863 n.a. n.a. n.a. 1,810 315 1969—June 30io 14,321 207 10,366 6,353 366 264 179 1,144 790 338 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 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 4271,503 17 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 2,731 1,901 15,563 1,3421,053 1967—Dec. 30.. 106,086 1,219 72,713 30,609 1,311 881 1,143 578 5,44616,969 15,0472,148 14,667 3,140 3,557 8,312 15,3762,110 1968—Dec. 31.. 119,339 2,197 81,76934,632 1,362 1,116 1,254 588 6,005 18,939 16,9162,52015,036 n.a. n.a. n.a. 18,111 2,226 1969—June 30io120,082 1,997 86,87937,120 1,512 7601,360 885 5,816 19,417 17,3542,656 11,635 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 1,2221,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26,999 5,732 4,54416,722 1,3421,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,0061,262 1967—Dec. 30.. 123,127 1,538 74,07419,8394,332 607 906 100 2,20024,45321,5541,51624,689 4,168 7,793 13,14718,3384,488 1968—Dec. 31.. 135,364 2,295 81,70621,811 4,493 720 969 119 2,14727,16424,154 1,69424,998 n.a. n.a. n.a.21,2695,095 1969—June 30 io138,298 2,248 86,91322,9844,779 460 963 104 2,041 28,30825,509 1,76521,686 n.a. n.a. n.a.22,5594,893 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 10911,318 2,179 1,219 7,920 1,078 625 1967—Dec. 30.. 67,087 618 38,791 9,0993,568 395 681 148 94812,99711,131 46915,516 n.a. n.a. n.a. 8,4863,676 1968—Dec. 31.. 76,454 1,196 44,05610,5383,797 451 729 194 93214,67612,933 535 16,585 n.a. n.a. n.a. 10,1474,469 1969—June 30io 80,841 1,783 48,376 11,4764,204 310 739 201 92515,863 14,083 57414,662 n.a. n.a. n.a. 11,481 4,541 1 Beginning with June 30, 1948, figures for various loan items are 4 Breakdowns of loan, investment, and deposit classifications are not shown gross (i.e., before deduction of valuation reserves); they do not available before 1947; summary figures for 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. 5 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.” 6 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. 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MAY 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 te f d B s F w e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w B d n e n o i c a s t k e l t ­ h ­ i s s c 7 ju p m D s o a d a t s d e e e n i ­ ­ d t ­ d s 8 m D e I s n o t t ­ i e c r 7 ba e F n ig o k n r ­ 9 G U o . v S t . . g S l a o o t n c a v d a t t e l . c C c h o a f e e i e f n e r f r c d d i s t k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U a o o a n . s v S v d t ­ 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 ­ ­ c C o a t a u a c p l n ­ i t ­ s etc. ings Total: 3 1947-Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 6510,059 1967—Dec. 30.... 20,275 5,931 17,490153,253 19,853 2,029 5,234 15,564 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 5,010 16,876 9,684 173,341 1,211 36819,110 184,8928,89937,006 1969—June 30io.. 19,801 6,258 17,591 152,995 22,929 2,258 5,639 16,930 12,717 164,141 882 351 16,690183,97614,74038,823 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1967—Dec. 30.... 20,275 5,916 16,997151,948 19,688 1,909 5,219 15,471 8,608 158,905 1,258 26715,836166,9565,531 33,916 1968—Dec. 31.... 21,230 7,165 18,343 165,527 22,310 2,117 5,000 16,774 9,442 172,319 1,155 36819,057184,1788,67536,530 1969—June 30*0.. 19,801 6,229 16,778 151,340 22,755 2,134 5,624 16,819 12,378 163,160 800 351 16,634183,30214,45038,321 Member, total: 1941—Dec. 31.... 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.... 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31.... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1967—Dec. 30.... 20,275 4,646 10,550121,530 18,951 1,861 4,631 11,857 7,940 132,184 1,169 23512,856135,3295,37028,098 1968—Dec. 31.... 21,230 5,634 11,279131,491 21,483 2,036 4,309 12,851 8,592 142,476 1,061 33015,668147,5458,45830,060 1969—June 30 io.. 19,801 4,828 10,370118,038 22,026 2,072 4,874 12,916 11,513 133,857 722 30513,071 143,99013,99931,317 New York City: 1941—Dec. 31___ 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 * i 95 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1967—Dec. 30.... 4,786 397 476 20,004 5,900 1,337 1,084 890 4,748 25,644 741 70 1,152 18,8401,880 5,715 1968—Dec. 31.... 4,506 443 420 20,808 7,532 1,433 888 1,068 4,827 27,455 622 73 1,623 18,3802,733 6,137 1969—June 30 io.. 4,212 400 424 15,504 9,725 1,509 983 1,314 7,801 25,338 405 53 673 14,7353,671 6,283 City of Chicago: 1941—Dec. 31___ 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1967—Dec. 30.... 1,105 94 151 4,758 1,357 77 267 283 217 5,751 21 2 602 5,409 383 1,346 1968—Dec. 31.... 1,164 98 281 5,183 1,445 89 257 245 207 6,090 21 2 624 5,545 682 1,433 1969—June 30 io.. 652 78 134 4,428 1,298 69 274 321 228 5,644 25 1 391 4,783 1,230 1,492 Other reserve city: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31.... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1967—Dec. 30.... 8,618 1,452 2,805 39,957 8,985 390 1,715 3,542 1,580 48,165 310 80 5,830 50,2502,555 10,033 1968—Dec. 31.... 8,847 1,800 2,986 43,674 9,725 456 1,884 3,835 1,947 51,667 307 168 7,378 55,271 4,239 10,684 1969—June 3010. . 7,945 1,499 2,776 39,781 8,538 444 2,172 3,792 1,843 48,444 205 162 6,231 53,621 7,311 11,166 Country: 1941—Dec. 31.... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31.... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1967—Dec. 30.. .. 5,767 2,704 7,117 56,812 2,709 57 1,564 7,142 1,395 52,624 96 83 5,272 60,830 55211,005 1968—Dec. 31.... 6,714 3,293 7,592 61,827 2,781 58 1,281 7,703 1,612 57,263 111 86 6,043 68,348 80411,807 1969—June 30io.. 6,991 2,851 7,036 58,325 2,465 49 1,447 7,490 1,641 54,432 86 88 5,776 70,8521,787 12,376 Nonmember :3 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 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 1,092 30,865 150 38 3,442 37,347 441 6,945 1969—june 30i° 1,430 7,221 34,957 903 186 765 4,013 1,204 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. I960, 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. 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A 26 WEEKLY REPORTING BANKS □ MAY 1970 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans .1 Federal funds sold, etc Other To brokers For pui •chasing and dealers or carryinjg securities Total involving— To nonbank loans finan. Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 19693 Apr. 2............. 232,612 168,547 75,269 1,969 737 3,395 106 2,787 5,506 5,203 9............. 231,964 167,914 75,337 1 ,971 902 3,331 107 2,782 5,477 5,103 16.............. 235,556 171,569 76,568 1,999 1,719 3,796 106 2,778 6,129 5,170 23............. 232,165 169,152 76,462 1,996 823 3,508 104 2,788 5,671 5,139 30............. 233,357 170,182 76,659 2,005 766 3,598 106 2,763 6,131 5,218 1970 Mar. 4............. 233,828 6,898 5,658 972 173 95 168,477 78,531 2,006 1,043 3,113 96 2,377 5,663 5,512 11............. 232.586 6,458 5,462 731 234 31 167,529 78,541 1 ,997 817 3,140 94 2,364 5,210 5,463 18............. 233,248 6,424 6,016 207 154 47 168,268 79,274 2,005 429 3,213 98 2,372 5,373 5,452 25............. 232,953 5,836 5,427 237 106 66 168,339 78,853 2,007 594 3,542 100 2,365 5,407 5,454 Apr. 1 *........... 238,535 7,679 6,507 785 225 162 170,290 79,028 2,017 758 3,965 101 2,371 5,992 5,666 8*........... 236,337 6,875 5,392 1 ,141 253 89 168,485 78,570 2,009 1,110 3,259 100 2,363 5,563 5,611 15*........... 238,480 6,812 6,063 637 90 22 170,039 79,503 2,034 890 3,548 99 2,361 5,965 5,591 Up........... 235,599 5,830 5,330 326 99 75 168,777 79,336 2,036 586 3,295 98 2,354 5,619 5,559 29*........... 235.586 6,193 5,787 312 31 63 168,526 78,925 2,025 789 3,278 99 2,331 5,556 5,559 New York City 19693 Apr. 2............. 53,347 41,805 24,501 15 539 1,972 12 840 1,704 1,365 9............. 52,691 40,859 24,447 15 725 1,917 10 837 1,694 1,319 16............. 54,353 42,435 24,741 15 1,159 2,319 10 837 2,085 1,336 23............. 52,935 41,567 24,693 14 521 2,110 10 844 1 ,785 1,340 30............. 53,517 42,133 24,736 15 549 2,214 10 845 2,036 1,362 1970 Mar. 4............. 53,717 1,238 1,179 41,899 25,670 12 850 1,886 12 748 1,836 1,581 11............. 53,945 1,781 1,699 41,402 25,682 12 591 1,927 10 746 1,654 1,584 18............. 54,229 1,864 1,816 41,590 25,950 12 268 1,963 12 749 1,696 1,569 25............. 53,986 1,455 1,399 41,858 25,726 12 475 2,276 13 745 1,721 1,554 Apr. 1 p........... 56,015 1,256 1,201 43,192 25,786 12 623 2,639 13 740 2,080 1,714 8*........... 54,526 911 849 41,963 25,621 13 804 1,989 13 735 1,796 1,682 15*............ 55,637 919 865 26 42,569 25,886 13 654 2,249 11 731 2,059 1,653 22*........... 54,396 959 902 41,716 25,765 13 374 2,140 11 723 1,846 1,627 29*........... 54,754 1,578 1,555 41,521 25,491 13 571 2,128 12 720 1,840 1,607 Outside New York City 19693 Apr. 2............. 179,265 126,742 50,768 1,954 198 1,423 94 1,947 3,802 3,838 9............. 179,273 127,055 50,890 1,956 177 1,414 97 1,945 3,783 3,784 16............. 181,203 129,134 51,827 1,984 560 1,477 96 1,941 4,044 3,834 23............. 179,230 127,585 51,769 1,982 302 1,398 94 1,944 3,886 3,799 30............. 179,840 128,049 51,923 1,990 217 1,384 96 1,918 4,095 3,856 1970 Mar. 4............. 180,111 5,660 4,479 952 163 66 126,578 52,861 1,994 193 1,227 84 1,629 3,827 3,931 11............. 178,641 4,677 3,763 701 190 23 126,127 52,859 1,985 226 1,213 84 1,618 3,556i 3,879 18............. 179,019 4,560 4,200 172 144 44 126,678 53,324 1,993 161 1,250 86 1,623 3,677 3,883 25............. 178,967 4,381 4,028 202 96 55 126,481 53,127 1,995 119 1,266 87 1,620 3,686 3,900 Apr. 1 *........... 182,520 6,423 5,306 775 197 145 127,098 53,242 2,005 135 1,326 88 1,631 3,912 3,952 8*........... 181,811 5,964 4,543 1,087 253 81 126,522 52,949 1,996 306 1,270 87 1,628 3,767 3,929 15*........... 182,843 5,893 5,198 630 64 1 127,470 53,617 2,021 236 1,299 88 1,630 3,906 3,938 22*........... 181,203 4,871 4,428 311 99 33 127,061 53,571 2,023 212 1,155 87 1,631 3,773 3,932 29*........... 180,832 4,615 4,232 312 31 40 127,005 53,434 2,012 218 1,150 87 1,611 3,716 3,952 30 For notes see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE 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 Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts.2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 19693 32,623 5,379 1,688 18,832 1,059 13,994 26,072 3,521 5,210 11,914 5,427 ........................Apr. 2 32,648 4,687 1,678 18,911 1,096 13,884 25,528 3,031 5,379 11,723 5,395 ................................. 9 32,717 4,748 1,695 18,959 1,037 14,148 25,587 3,064 5,457 11,680 5,386 .................................16 32,803 4,013 1,690 19,030 1,045 14,080 24,839 2,322 5,410 11,688 5,419 .................................23 32,876 4,262 1,617 19,121 953 14,107 24,789 2,291 5,434 11,632 5,432 .................................30 1970 33,411 503 1,410 20,189 951 13,672 22,344 2,972 2,924 13,860 2,588 ........................Mar. 4 33,402 453 1,460 20,194 948 13,446 22,120 2,808 2,915 13,826 2,571 .................................11 33,442 449 1,544 20,150 985 13,482 21,919 2,563 3,053 13,760 2,543 .................................18 33,451 486 1,461 20,180 965 13,474 21,872 2,525 3,157 13,691 2,499 .................................25 33,440 499 1,459 20,229 1,040 13,725 23,616 4,229 3,226 13,635 2,526 ........................Apr. 1 * 33,392 467 1,428 20,186 1,015 13,412 23,361 3,899 3,340 13,613 2,509 ................................. 8* 33,430 422 1,442 20,215 993 13,546 23,427 3,985 3,377 13,589 2,476 .................................1 5p 33,412 437 1,340 20,219 988 13,498 22,967 3,499 3,420 13,610 2,438 ................................22* 33,367 447 1,311 20,263 1,012 13,564 22,878 3,423 3,407 13,634 2,414 .................................29* New York City 19693 3,290 1,988 835 1,468 691 2,585 4,620 999 694 1,798 1.129 ........................Apr. 2 3,295 1,097 778 1,468 692 2,565 4,579 1,009 699 1.777 1,094 ................................. 9 3,305 1,087 802 1,477 693 2,569 4,703 1,102 732 1.778 1,091 .................................16 3,347 1,374 821 1,480 695 2,533 4,334 720 725 1,777 1,112 .................................23 3,377 1,434 857 1,484 664 2,550 4,309 695 721 1,764 1.129 .................................30 1970 3,355 300 730 1,646 579 2,694 4,248 972 314 2.656 306 ........................Mar. 4 3,344 251 793 1,640 588 2,580 4,295 1,013 327 2.657 298 .................................11 3,357 237 875 1,640 606 2,656 4,235 956 359 2,630 290 .................................18 3,358 266 809 1,644 580 2,679 4,151 840 391 2,636 284 .................................25 3,372 297 830 1,639 625 2,822 4,933 1,615 393 2,633 292 ........................Apr. 1 p 3,381 273 778 1,637 626 2,615 4,972 1,620 427 2,632 293 ................................. 8* 3,400 229 801 1,641 625 2,617 5,106 1,751 446 2,617 292 .................................15* 3,392 250 730 1,651 603 2,591 4,823 1 ,500 439 2,607 277 .................................22* 3,373 237 719 1 ,644 615 2,551 4,850 1 ,510 453 2,620 267 .................................29* Outside New York City 19693 29,333 3,391 853 17,364 368 11,409 21,452 2,522 4,516 10,116 4,298 ........................Apr. 2 29,353 3,590 900 17,443 404 11,319 20,949 2,022 4,680 9,946 4,301 ................................. 9 29,412 3,661 893 17,482 344 11,579 20,884 1,962 4,725 9,902 4,295 .................................16 29,456 2,639 869 17,550 350 11,547 20,505 1,602 4,685 9,911 4,307 .................................23 29,499 2,828 760 17,637 289 11,557 20,480 1,596 4,713 9,868 4,303 .................................30 1970 30,056 203 680 18,543 372 10,978 18,096 2,000 2,610 11,204 2,282 ........................Mar. 4 30,058 202 667 18,554 360 10,866 17,825 1,795 2,588 11,169 2,273 .................................11 30,085 212 669 18,510 379 10,826 17,684 1,607 2,694 11,130 2,253 .................................18 30,093 220 652 18,536 385 10,795 17,721 1,685 2,766 11,055 2.215 .................................25 30,068 202 629 18,590 415 10,903 18,683 2,614 2,833 11,002 2,234 .......................Apr. 1 * 30,011 194 650 18,549 389 10,797 18,389 2,279 2,913 10,981 2.216 ................................ 8* 30,030 193 641 18,574 368 10,929 18,321 2,234 2,931 10,972 2,184 ................................15* 30,020 187 610 18,568 385 10,907 18,144 1,999 2,981 11,003 2,161 ................................22* 29,994 210 592 18,619 397 11,013 18,028 1,913 2,954 11,014 2,147 ................................29* 30 For notes see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

EPORTING BANKS □ MAY 1970 S AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continu (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re­ of state corp. stock, in serves and and process with political securities of F.R. liab subdivisions collec­ Banks iti< tion Tax Certif. war­ All of All rants4 other partici­ other6 pation5 4,722 28,940 1,350 2,981 28,534 16,663 296, 5,192 29,099 1,316 2,915 27,152 16,551 294! 5,170 29,044 1,319 2,867 30,825 16,762 30i; 5,037 28,930 1,331 2,876 28,870 16,393 296! 5,082 28,987 1 ,360 2,957 32,133 18,432 302 3,676 28,493 1,072 2,868 34,593 15,920 306 3,855 28,495 1 ,081 3,048 32,535 15,206 302! 4,023 28,658 1 ,045 2,911 34,463 17,762 307; 4,089 28,644 1 ,102 3,071 29,247 16,861 300; 4,087 28,589 1,112 3.162 33,871 17,357 313 4,469 28,893 1,133 3,121 32,065 14,906 306 4,826 29,135 1,124 3,117 38,629 18,384 317; 4,870 28,961 1,074 3,120 31,457 17,977 307 4,862 28,906 1,059 3.162 30,554 16,787 304 1,442 4,590 98 792 13,202 4,261 75, 1,671 4,693 101 788 12,188 4,336 74! 1,666 4,671 107 771 13,558 4,171 76; 1,581 4,581 102 770 14,117 3,662 75; 1,583 4,602 118 772 16,269 5,031 19, 1,002 4,540 82 708 17,672 4.512 81, 996 4,609 91 771 17,584 3,802 8i; 1,046 4,675 89 730 18,603 4.752 83; 1,079 4,597 93 753 16,141 4.512 so; 1,212 4,551 93 778 16,771 4,859 84, 1,269 4,547 95 769 16,418 4.752 8i; 1,403 4,778 94 768 19,966 4,309 85; 1,462 4,583 100 753 15,178 4,568 80; 1,416 4,508 95 786 15,589 3,895 80, 3,280 24,350 1,252 2,189 15,332 12,402 220, 3,521 24,406 1,215 2,127 14,964 12,215 220, 3,504 24,373 1,212 2,096 17,267 12,591 225; 3,456 24,349 1,229 2,106 14,753 12,731 220; 3,499 24,385 1,242 2,185 15,864 13,401 222; 2,674 23,953 990 2,160 16,921 11.408 224, 2,859 23,886 990 2,277 14,951 11,404 220, 2,977 23,983 956 2,181 15,860 13,010 223; 3,010 24,047 1,009 2,318 13,106 12,349 220 j 2,875 24,038 1,019 2,384 17,100 12,498 228, 3,200 24,346 1,038 2,352 15,647 10,154 225, 3,423 24,357 1,030 2,349 18,663 14,075 232; 3,408 24,378 974 2,367 16,279 13.409 227, 3,446 24,398 964 2,376 14,965 12,892 224, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings1 Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc.1 cial checks ings sions banks Large banks— Total 19693 128,681 93,161 6,257 2,003 16,260 776 691 1,927 7,606 108,389 48,653 43,419 10,718 530 4,578 125,529 91,788 5,878 1,286 15,812 817 670 1,893 7,385 108,089 48,340 43,402 10,797 526 4,529 ........................ 9 133,627 95,898 6,031 4,581 16,046 716 748 1,911 7,696 107,320 47,913 42,967 10,961 494 4,508 ........................16 128,545 91,517 5,747 4,67C 15,307 636 717 1,89C 8,061 107,281 47,812 42,957 11,019 493 4,512 ........................23 134,767 92,701 7,005 6,946 16,316 631 789 2,036 8,343 106,949 47,737 42,908 10,812 494 4,513 ........................30 1970 136,145 91,593 6,512 5,365 18,558 610 837 2,191 10,479 95,893 45,690 35,667 6,910 274 7,099 131,896 91,013 5,966 2,961 17,907 571 713 2,180 10,585 96,268 45,800 35,763 6,994 283 7,174 ........................11 135,911 90,242 5,983 5,509 18,570 558 760 2,850 11,439 96,732 45,945 35,836 7,113 266 7,347 ........................18 130,762 89,225 6,358 4,018 16,643 489 788 2,370 10,871 97,353 45,997 36,210 7,229 275 7,415 ........................25 141,131 97,063 6,849 4,119 18,952 795 900 2,387 10,066 98,229 46,221 36,523 7,562 297 7,383 134,650 93,826 5,971 2,706 17,866 836 750 2,415 10,280 98,453 46,152 36,546 7,912 310 7,274 ........................ 8* 143,901 98,566 6,613 3,381 19,043 735 841 2,327 12,395 98,628 45,922 36,468 8,387 327 7,255 ........................15* 134,014 94,344 6,061 3,493 17,213 608 708 2,384 9,203 99,059 45,894 36,557 8,753 328 7,239 ........................22* 131,784 91,703 6,447 4,281 16,407 587 756 2,252 9,351 99,282 45,892 36,762 8,918 317 7,104 ........................26* New York City 19693 37,449 23,192 594 410 5,811 470 537 1,359 5,076 16,584 4,667 7,686 852 294 2,880 35,314 21,853 684 88 5,388 477 523 1,339 4,962 16,370 4,637 7,575 835 292 2,820 ........................ 9 38,015 22,668 436 1,689 5,706 401 594 1,342 5,179 15,993 4,588 7,350 790 277 2,787 ........................16 37,149 21,764 418 1,004 5,797 358 570 1,325 5,913 15,909 4,582 7,274 778 278 2,788 ........................23 41,188 22,967 758 2,041 6,879 349 628 1,473 6,093 15,745 4,576 7,233 655 275 2,794 ........................30 1970 42,825 22,574 648 1,154 7,721 340 680 1,538 8,170 13,597 4,355 4,156 129 150 4,701 42,038 22,095 571 642 7,861 320 545 1,522 8,482 13,720 4,370 4,206 130 157 4,752 ........................11 43,920 21,028 554 1,458 8,421 310 602 2,193 9,354 13,851 4,388 4,206 132 140 4,880 ........................18 41,451 21,132 540 821 7,515 256 632 1,734 8,821 14,075 4,391 4,355 135 147 4,942 ........................25 44,373 24,788 779 779 7,681 522 717 1,685 7,422 14,409 4,424 4,551 270 163 4,896 41,841 22,666 680 640 7,219 524 579 1,718 7,815 14,419 4,411 4,570 333 168 4,834 ........................ 8* 45,581 23,298 672 1,009 8,117 427 670 1,657 9,731 14,289 4,378 4,516 335 182 4,775 ........................15* 40,534 22,938 528 586 7,014 340 535 1,740 6,853 14,205 4,378 4,474 345 183 4,720 ........................22* 40,716 22,569 587 942 6,902 319 607 1,624 7,166 14,131 4,379 4,556 346 182 4,563 Outside New York City 19693 91,232 69,969 5,663 1,593 10,449 306 154 568 2,530 91,805 43,986 35,733 9,866 236 1 ,698 90,215 69,935 5,194 1,198 10,424 340 147 554 2,423 91,719 43,703 35,827 9,962 234 1,709 ........................ 9 95,612 73,230 5,595 2,892 10,340 315 154 569 2,517 91,327 43,325 35,617 10,171 217 1,721 ........................16 91,396 69,753 5,329 3,666 9,510 278 147 565 2,148 91,372 43,230 35,683 10,241 215 1,724 ........................23 93,579 69,734 6,247 4,905 9,437 282 161 563 2,250 91,204 43,161 35,675 10,157 219 1,719 ........................30 1970 93,320 69,019 5,864 4,211 10,837 270 157 653 2,309 82,296 41,335 31,511 6,781 124 2,398 89,858 68,918 5,395 2,319 10,046 251 168 658 2,103 82,548 41,430 31,557 6,864 126 2,422 ........................11 91,991 69,214 5,429 4,051 10,149 248 158 657 2,085 82,881 41,557 31,630 6,981 126 2,467 ........................18 89,311 68,093 5,818 3,197 9,128 233 156 636 2,050 83,278 41,606 31,855 7,094 128 2,473 ........................25 96,758 72,275 6,070 3,340 11,271 273 183 702 2,644 83,820 41,797 31,972 7,292 134 2,487 92,809 71,160 5,291 2,066 10,647 312 171 697 2,465 84,034 41,741 31,976 7,579 142 2,440 ........................ 8* 98,320 75,268 5,941 2,372 10,926 308 171 670 2,664 84,339 41,544 31,952 8,052 145 2,480 ........................15* 93,480 71,406 5,533 2,907 10,199 268 173 644 2,350 84,854 41,516 32,083 8,408 145 2,519 .......................22* 91,068 69,134 5,860 3,339 9,505 268 149 628 2,185 85,151 41,513 32,206 8,572 135 2,541 .......................29* 30 For notes see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS a MAY 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 deposits1 ties of pur­ F.R. ties Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed 1 o Total to to foreign justed9 IPC’s others bran­ ches Large banks—Total 19693 Apr. 2., 833 12,648 19,974 3,530 22,315 163,168 227,233 81,884 18,609 11,447 7,162 9,206 9. 518 13,796 20,342 3.522 22,329 163,227 227,277 81,279 18,482 11,349 7,133 9,511 16. 789 13,754 20,607 3.523 22,262 166,821 230,808 82,175 17,981 10,975 7,006 9,694 23., 1,001 11,996 21,602 3,522 22,264 165,139 228,152 79,698 17,980 11,005 6,975 10,281 30., 2,175 11,749 20,973 3.524 22,479 165,920 229,095 79,372 17,600 10,817 6,783 9,414 1970 Mar. 4. 17,866 237 2,816 25.513 4.037 23,610 169,214 227,667 77,629 11,009 4,894 6,115 12,673 11. 17,980 346 2,772 25,104 4.033 23,614 168,072 226,671 78,493 11,168 4,933 6,235 12,922 18. 18,433 456 2,683 25.513 4.036 23,500 168,227 226,783 77,369 11,351 4,954 6,397 12,904 25. 16,591 1,334 2,543 24,696 4.033 23,496 168,262 227,040 80,854 11,820 5,330 6,490 12,356 Apr. 1p. 18,496 422 2,485 24,618 4,041 23,650 170,963 231,529 84,189 12,237 5,512 6,725 12,034 Sp. 17,990 300 2,620 24,816 4,039 23,685 169,501 230,478 82,013 12,499 5,671 6,828 12,410 \5p. 19,105 1,332 2,493 24,642 4.038 23.649 170,366 231,995 82,848 12,774 5,770 7,004 12,213 22 p. 18,241 1,164 2,349 24,608 4.037 23,609 168,840 229,832 81,851 12,941 5,831 7,110 11,992 29 p. 18,075 680 2,418 24,907 4.037 23.650 168,485 229,352 80,542 13,047 5,947 7,100 12,467 New York City 19693 Apr. 2. 3,343 11,344 1.048 5,934 39,817 51,359 18,026 4,381 2,626 1,755 7,082 9. 85 3,987 11,288 1.048 5,928 39,762 51,594 17,650 4,288 2,563 1,725 7,059 16. 190 4,325 11,360 1.048 5,905 41,348 53,266 17,062 4,053 2,400 1,653 7,114 23. 110 3,423 11,899 1.048 5,895 40,193 51,561 16,231 4,020 2,383 1,637 7,470 30. 298 3,524 11,923 1.049 5,974 40,699 52,083 15,999 3,820 2,312 1,508 7,264 1970 Mar. 4... 4,808 323 13,097 1.203 6,098 41,658 52,238 16,278 2,661 527 2,134 8,328 11... 4,669 324 13,307 1.203 6,101 41,233 51,995 15,951 2,732 545 2,187 8,524 18.. 4,973 60 324 13,154 1,202 6,038 41,401 52,176 15,438 2,796 552 2,244 8,446 25.. 4,469 115 315 12,883 1.203 6,013 41,648 52,321 16,974 3,004 728 2,276 8,134 Apr. 1 *., 5,211 100 316 12.535 1.204 6,061 42,950 54,517 19,142 3,211 841 2,370 7,830 8p., 4,648 14 316 12,887 1.204 6,059 41,752 53,404 17,564 3,227 869 2,358 8,266 15*\, 4,922 679 303 12,726 1.205 6,061 42,394 54,543 16,489 3,187 868 2,319 8,165 22 p., 4,890 379 305 12.536 1.206 6,032 41,523 53,244 17,756 3,159 876 2,283 7,855 29 p.. 4,817 79 311 12,904 1,207 6,027 41,307 52,962 17,283 3,075 903 2,172 8,196 Outside New York City 19693 Apr. 2. 833 9,305 8,630 2,482 16,381 123,351 175,874 63,858 14,228 8,821 5.407 2,124 9. 433 9,809 9,054 2.474 16,401 123,465 175,683 63,629 14,194 8,786 5.408 2,452 16. 599 9,429 9,247 2.475 16,357 125,473 177,542 65,113 13,928 8,575 5,353 2,580 23. 891 8,573 9,703 2.474 16,369 124,946 176,591 63,467 13,960 8,622 5,338 2,811 30. 1,877 8,225 9,050 2.475 16,505 125,221 177,012 63,373 13,780 8,505 5,275 2,150 1970 Mar. 4. 13,058 237 2,493 12,416 2.834 17.512 127,556 175,429 61,351 8,348 4,367 3,981 4,345 11. 13,311 346 2,448 11,797 2.830 17.513 126,839 174,676 62,542 8,436 4,388 4,048 4,398 18. 13,460 396 2,359 12,359 2.834 17,462 126,826 174,607 61,931 8,555 4,402 4,153 4,458 25., 12,122 1,219 2,228 11,813 2.830 17,483 126,614 174,719 63,880 8,816 4,602 4,214 4,222 Apr. Ip. 13,285 322 2,169 12,083 2,837 17,589 128,013 177,012 65,047 9,026 4,671 4,355 4,204 8p. 13,342 286 2,304 11,929 2.835 17,626 127,749 177,074 64,449 9,272 4,802 4,470 4,144 15 p. 14,183 653 2,190 11,916 2,833 17,588 127,972 177,452 66,359 9,587 4,902 4,685 4,048 22p. 13,351 785 2,044 12,072 2.831 17,577 127,317 176,588 64,095 9,782 4,955 4,827 4,137 29p. 13,258 601 2,107 12,003 2,830 17,623 127,178 176,390 63,259 9,972 5,044 4,928 4,271 1 Includes securities purchased under agreements to resell. 7 Includes securities sold under agreements to repurchase. 2 Includes official institutions and so forth. 8 Includes minority interest in consolidated subsidaires. 3 Figures not comparable with 1969 data. For description of revision 9 Exclusive of loans and Federal funds transactions with domestic com­ in series beginning July 2 (with overlap for June 25), see Bulletin for Aug. mercial banks. 1969, pp. 642-46. 10 All demand deposits except U.S. Govt, and domestic commercial 4 Includes short-term notes and bills. banks, less cash items in process of collection. 5 Federal agencies only. 11 Certificates of deposit issued in denominations of $100,000 or more. 6 Includes corporate stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1970 1970 1970 1969 1969 A 2 p 9 r. A 2 p 2 r. A 1 p 5 r. A 8 pr. Ap 1 r. Apr. Mar.r Feb. Ir IV III h 2 a n l d f h 1 a s l t f Durable goods manufacturing: Primary metals............................... 2,064 2,062 2,085 2,073 2,067 50 -1 -37 - 71 76 53 129 65 Machinery...................................... 6,128 6,088 6,118 6,011 6,012 18 258 170 184 329 280 609 708 Transportation equipment............. 2,763 2,834 2,806 2,804 2,806 -24 52 78 155 400 139 539 173 Other fabricated metal products. .. 2,193 2,213 2,222 2,158 2,138 45 84 78 145 -115 -59 -174 327 Other durable goods...................... 2,636 2,643 2,606 2,559 2,546 97 126 27 24 -13 92 79 253 Nondurable goods manufacturing: Food, liquor, and tobacco............. 2,825 2,836 2,734 2,761 2,787 -17 -35 -89 -411 666 43 709 -433 Textiles, apparel, and leather......... 2,555 2,581 2,590 2,555 2,552 46 104 138 172 -471 98 -373 523 Petroleum refining.......................... 1 ,588 1 ,593 1,599 1,587 1 ,581 -13 56 -58 -117 -107 -243 -350 465 Chemicals and rubber.................... 2,876 2,982 2,908 2,894 2,865 21 -6 125 10 197 -94 103 259 Other nondurable goods................ 2,025 2,027 2,033 1 ,994 2,078 -68 21 51 9 36 163 199 115 Mining, including crude petroleum and natural gas......................... 4,284 4,304 4,313 4,323 4,336 -114 -38 -148 -439 -15 -54 -69 195 Trade: Commodity dealers................ 982 1 ,002 1 ,015 1,061 1,063 -53 -81 -15 -155 366 -132 234 -370 Other wholesale...................... 3,583 3,576 3,581 3,549 3,573 76 114 8 -62 48 -37 11 187 Retail...................................... 4,210 4,185 4,337 4,069 4,131 132 13 200 -102 129 -255 -126 270 Transportation................................... 5,455 5,485 5,469 5,555 5,583 -125 14 -51 -156 246 11 257 299 Communication................................. 1 ,375 1 ,407 1,411 1,338 1,408 23 5 5 -187 247 94 341 19 Other public utilities.......................... 2,584 2,596 2,586 2,649 2,807 -190 -354 -247 -791 452 295 747 -53 Construction...................................... 3,111 3,127 3,109 3,075 3,054 48 10 23 -79 -144 -26 -170 394 Services.............................................. 6,795 6,762 6,790 6,791 6,839 -120 63 80 -105 408 -145 263 781 All other domestic loans.................... 4,806 4,865 4,964 4,810 4,928 -23 143 -5 -116 365 142 507 689 Bankers’ acceptances.......................... 650 730 719 629 569 98 43 -74 -156 294 -111 183 -203 Foreign commercial and industrial loans........................................... 2,189 2,181 2,191 2,196 2,188 -5 27 -31 -44 -24 -168 -192 -164 Total classified loans......................... 67,677 68,079 68,186 67,441 67,911 -98 618 228 2,292 3,370 86 3,456 4,499 Total commercial and industrial loans. 78,925 79,336 79,503 78,570 79,028 169 538 195 -2,738 3,438 -361 3,077 5,252 See’Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1970 1969 1970 1969 1969 Industry Apr. Mar. Feb. Jan. Dec. Nov. Oct. Sept. Aug. 2nd 29 25 25 28 31 26 29 24 27 I IV III II half Durable goods manufactur­ ing: Primary metals.................. 1,463 1,452 1,420 1,428 1,476 1,402 1,407 1,419 1,375 -24 57 67 -36 124 Machinery........................ 2,761 2,800 2,748 2,686 2,749 2,566 2,507 2,556 2,509 51 193 82 45 275 Transportation equipment. 1 ,560 1,575 1,544 1,554 1,501 1,389 1,305 1,245 1,195 74 256 148 -66 404 Other fabricated metal products........................ 772 759 754 757 761 796 770 769 780 -2 -8 -29 84 -37 Other durable goods......... 1 ,178 1,162 1,141 1,145 1,169 1,097 1,087 1,110 1,062 -7 59 42 20 101 Nondurable goods manufac­ turing: Food, liquor, and tobacco. 950 960 952 942 953 908 873 888 861 7 73 24 152 97 Textiles, apparel, and leather........................... 709 726 721 708 713 707 686 696 669 13 24 46 25 70 Petroleum refining............ 1,254 1,255 1,234 1,310 1,356 1,310 1,282 1,477 1,465 -101 -121 -190 139 -311 Chemicals and rubber....... 1,831 1,805 1,896 1,832 1,829 1,674 1,701 1,718 1,742 -24 112 21 95 133 Other nondurable goods. . 1,099 1,146 1,120 1,133 1,151 1,123 1,071 1,066 1,058 -5 85 15 26 100 Mining, including crude pe­ troleum and natural gas. 3,590 3,709 3,757 3,916 4,090 4,044 4,079 4,119 4,030 -381 -29 -84 -67 -113 Trade: Commodity dealers.. 77 78 81 90 79 81 81 80 111 -1 -1 -34 4 -35 Other wholesale........ 684 696 693 686 706 668 691 672 663 -10 40 -4 -2 36 Retail........................ 1,242 1,206 1,236 1,232 1,229 1,215 1,182 1,162 1,148 -23 71 4 1 75 Transportation..................... 4,199 4,331 4,291 4,343 4,414 4,146 4,115 4,107 4,061 -83 307 26 49 333 Communication.................... 445 476 472 480 498 462 486 446 446 -22 52 6 3 58 Other public utilities............. 1,020 1,161 1,244 1,318 1,337 1,219 1,244 1,296 1,243 -176 42 146 -82 188 Construction........................ 888 903 899 893 904 903 899 899 898 -1 13 -2 16 11 Services................................. 2,962 2,995 2,971 2,936 2,991 2,945 2,854 2,865 2,866 4 131 -10 -1 121 All other domestic loans.... 1,183 1,206 1,195 1,214 1,241 1,204 1,206 1,184 1,108 -35 110 108 -1 218 Foreign commercial and in­ dustrial loans................ 1,614 1,647 1,627 1,645 1,642 1,690 1,692 1,701 1,739 5 -75 -135 12 -210 Total loans........................... 31,481 32,048 31,996 32,248 32,789 31,549 31,218 31,475 31,029 -741 1,391 247 416 1,638 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 LOAN SALES BY BANKS □ MAY 1970 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding, in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1970—Jan. 7... 4,630 3,233 1,397 1,386 696 690 14... 5,225 3,729 1,496 1,401 689 712 21... 5,517 3,978 1,539 1,445 711 734 28... 5,832 4,282 1,550 1,458 721 736 Feb. 4... 5,904 4,266 1,637 1,495 741 754 11. .. 6,019 4,429 1,590 1,502 736 766 18... 6,282 4,687 1,595 1,520 756 764 25... 6,402 4,795 1,607 1,543 761 782 Mar. 4... 6,484 4,849 1,635 1,550 753 797 11... 6,450 4,904 1,546 1,562 760 802 18... 6,479 4,915 1,564 1,525 753 772 25. .. 6,682 5,148 1,534 1,527 745 782 Apr. 1. .. 6,646 5,089 1,557 1,520 720 800 8... 6,710 5,162 1,548 1,587 763 824 15... 6,609 5,052 1,557 1,573 755 818 22... 6,706 5,156 1,550 1,603 766 837 29... 6,948 5,379 1,569 1,609 762 847 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. RATES ON SHORT-TERM BUSINESS LOANS OF BANKS Size of loan (in thousands of dollars) All sizes 1-9 10-99 100-499 500-999 1,000 and over Interest rate (per cent per annum) Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. Feb. Nov. 1970 1969 1970 1969 1970 1960 1970 1969 1970 1969 1970 1969 Percentage distribution of dollar amount Less than 8.50........................... 2.8 4.4 19.3 21.5 8.1 9.6 4.9 6.0 2.1 3.0 1.2 2.8 47.2 41.1 3.6 4.5 8.4 9.1 21.8 21.0 37.4 37.5 63.8 57.6 8.51 8.99.................................... 21.1 23.5 8.4 10.4 12.9 13.2 22.6 25.7 26.2 27.1 20.9 23.8 7.9 9.3 10.8 10.2 14.2 14.6 13.1 12.4 10.9 9.3 4.6 6.9 9.01-9.49.................................... 7.0 7.4 12.0 11.7 15.9 16.3 12.9 12.9 6.5 9.0 3.9 2.8 5.4 5.3 14.1 13.2 13.0 12.3 8.5 7.6 6.2 5.8 3.0 2.7 9.51-9.99.................................... 3.2 3.4 13.9 14.5 9.9 10.0 6.2 5.1 4.2 3.2 0.9 1.3 Over 10.00................................. 5.4 5.7 17.9 13.8 17.5 14.9 10.2 9.5 6.4 4.9 1.8 2.3 Total............................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Total loans: Dollar (millions).................... 4,502.3 3,942.2 44.1 43.7 399.0 403.4 810.7 844.3 598.9 600.8 2,649.6 2,050.1 Number (thousands).............. 30.2 30.4 11.2 11.4 12.7 12.8 4.2 4.3 1.0 1.0 1.1 0.9 Center Weighted average rates (per cent per annum) 35 centers.................................. 8.86 8.83 9.17 9.05 9.26 9.20 9.04 9.00 8.87 8.84 8.67 8.66 New York City...................... 8.65 8.66 9.31 9.22 9.12 9.13 8.89 8.83 8.72 8.74 8.57 8.58 7 Other Northeast.................. 9.23 9.21 9.28 9.16 9.60 9.57 9.36 9.36 9.18 9.18 8.91 8.85 8 North Central...................... 8.86 8.83 8.96 8.77 9.24 9.16 9.11 9.11 8.88 8.81 8.71 8.70 7 Southeast............................. 8.67 8.58 8.82 8.69 8.80 8.73 8.65 8.55 8.54 8.60 8.63 8.45 8 Southwest........................... 8.87 8.79 9.25 9.20 9.11 9.02 8.94 8.81 8.86 8.76 8.67 8.66 4 West Coast.......................... 8.84 8.81 9.61 9.45 9.32 9.22 8.96 8.95 8.98 8.76 8.66 8.67 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

MAY 1970 a INTEREST RATES A 33 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate Effective date Rate Effective date Rate Effective date Rate \ 929 ............. 51/2-6 1947—Dec. 1............... 1V4 1956—Apr. 13......... 3*4 1966—Mar. 10......... 5% Aug. 21......... 4 June 29......... 5% 1930 ........................... 31/2-6 1948—Aug. 1 2 Aug. 16......... 6 1 1 1 9 9 9 3 3 3 2 3 ! . . . . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . . . . . . . .. . . . . .. . . . . .. . . . . .. . . . . .. . . . 2 3 11 1 34 / 4 2 - - - 5 4 4 1 19 9 5 5 1 0 — __ S ja e n p . t. 22 8......... 2 21 1 / 4 2 1 1 9 9 5 58 7 — — J A a u n g . . 2 2 £ 1 2 . . . . . . . . . . . . . . . . . . 4 3 41 1 / /2 2 1 1 9 9 6 67 8— — N J M A a o p n a v r . r . . . 2 0 o 1 7 n 6 9. - . 2 .. 7 ... . . . . . 5 5 6 1 V /2 i -534 2V4 Sept. VO VO VO vo $ 'ss; VO 193 1 4 9 — 47 (Nov.)............... 11/2 O De ct c . . 17......... 3 A Se p p r t . . 11......... 4 Nov. 2 1 5 3. . . . . . . . . . . . . . . . . . 1953—Apr. 27 314 1959— S M e a p y t. 1 1 8. .. . . . .. . . . . . .. . . . . . .. 5 41/2 D D e e c c . . 1 2 8 . . . . . . . . . . . . . . . . . . 6V4 1954—Mar. 17......... 3 1969—Jan. 7......... 1 1960—Aug. 23 41/2 Mar. 17......... -t~~ 00 ss. 1955—Aug. 4......... 314 June 9......... Oct. 14......... 31/2 1965—Dec. 6......... 5 1970—Mar. 25......... 8 1 Date of change not available. MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 Finance Prime CO. Prime coml. paper bankers’ Federal 3-month bills5 6-month bills5 9- to 12-month issues Period paper placed accept­ funds 3- to 5- 4- to 6- directly, ances, rate3 year months 1 3- to 6- 90 days 1 Rate on Market Rate on Market Bills (mar­ Other 6 issues 7 months2 new issue yield new issue yield ket yield)5 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 1969—Apr................. 7.04 6.38 6.86 7.41 6.150 6.11 6.168 6.13 6.03 6.11 6.15 May............... 7.35 6.54 7.38 8.67 6.077 6.03 6.149 6.15 6.10 6.26 6.33 June............... 8.23 7.25 7.99 8.90 6.493 6.43 6.725 6.75 6.86 7.07 6.64 July................ 8.65 7.89 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 1970—Jan.................. 8.78 8.14 8.64 8.98 7.914 7.87 7.863 7.78 7.50 8.22 8.14 Feb................. 8.55 8.01 8.30 8.98 7.164 7.13 7.249 7.23 7.07 7.60 7.80 Mar................ 8.33 7.68 7.60 7.76 6.710 6.63 6.598 6.59 6.52 6.88 7.20 Apr................. 8.06 7.26 7.54 8.10 6.480 6.50 6.568 6.61 6.54 6.96 7.49 Week ending— 1970—Feb. 7......... 8.53 8.13 8.40 9.21 7.754 7.61 7.718 7.62 7.37 8.07 8.08 14......... 8.63 8.11 8.38 9.18 7.312 7.20 7.387 7.30 7.12 7.77 7.94 21......... 8.55 7.88 8.28 9.39 6.777 6.80 6.917 7.02 6.90 7.39 7.66 28......... 8.50 7.92 8.13 8.41 6.812 6.87 6.975 6.95 6.84 7.12 7.45 Mar. 7......... 8.50 7.94 7.95 8.32 6.868 6.89 6.773 6.80 6.64 6.95 7.24 14......... 8.50 7.89 7.80 7.71 6.876 6.76 6.729 6.68 6.55 6.91 7.15 21......... 8.35 7.61 7.53 7.82 6.836 6.71 6.707 6.60 6.57 6.96 7.30 28......... 8.03 7.41 7.19 7.45 6.262 6.16 6.183 6.26 6.32 6.70 7.08 Apr. 4......... 8.08 7.25 7.23 7.93 6.330 6.35 6.391 6.42 6.36 6.77 7.22 11......... 8.08 7.25 7.43 7.68 6.409 6.39 6.454 6.41 6.27 6.73 7.29 18......... 8.00 7.25 7.38 8.02 6.310 6.37 6.247 6.37 6.29 6.78 7.43 25......... 8.00 7.25 7.63 8.21 6.476 6.58 6.494 6.75 6.70 7.07 7.62 May 2......... 8.13 7.29 8.00 8.43 6.876 6.83 7.253 7.17 7.19 7.56 7.87 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 □ MAY 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 States (long­ Total i term) Total i Aaa Baa Aaa Baa In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c fe P r r r e e ­ d C m o o m n ­ C m o o m n ­ 1962............................................ 3.95 3.30 3.03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963............................................ 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964............................................ 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965............................................ 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................ 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967............................................ 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968............................................ 5.25 4.48 4.20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 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 6.05 1969—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 June................................. 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 Aug.................................. 6.02 5.98 5.74 6.28 7.37 6.97 7.86 7.29 7.57 7.40 6.44 3 37 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 6.49 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 6.00 1970—Jan................................... 6.86 6.74 6.38 7.13 8.32 7.91 8.86 8.15 8.38 8.54 7.01 3.56 Feb................................... 6.44 6.47 6.19 6.80 8.29 7.93 8.78 8.11 8.39 8.47 7.04 3.68 Mar.................................. 6.39 6.08 5.81 6.40 8.18 7.84 8.63 7.98 8.33 8.34 6.97 3.60 Apr.................................. 6.53 6.50 6.24 6.87 8.20 7.83 8.70 8.00 8.34 8.37 6.98 3.70 Week ending— 1970—Feb. 7........................... 6.71 6.66 6.28 7.04 8.32 7.97 8.81 8.14 8.42 8.51 7.02 3.73 14........................... 6.48 6.51 6.26 6.85 8.31 7.97 8.79 8.14 8.39 8.51 7.01 3.71 21........................... 6.30 6.48 6.24 6.80 8.28 7.93 8.79 8.11 8.37 8.48 7.13 3.67 28........................... 6.25 6.23 6.00 6.50 8.23 7.83 8.73 8.04 8.37 8.39 7.01 3.59 Mar. 7........................... 6.28 6.13 5.85 6.43 8.16 7.79 8.62 7.98 8.34 8.30 6.95 3.56 14........................... 6.44 6.04 5.75 6.38 8.14 7.80 8.59 7.95 8.29 8.29 6.93 4.62 21........................... 6.51 6.11 5.84 6.42 8.20 7.88 8.65 8.00 8.34 8.36 7.03 3.66 28........................... 6.33 6.05 5.80 6.38 8.22 7.92 8.66 8.02 8.34 8.41 6.95 3.57 Apr. 4........................... 6.32 6.14 5.90 6.44 8.18 7.85 8.65 7.98 8.31 8.37 6.95 3.56 11........................... 6.38 6.36 6.10 6.75 8.17 7.80 8.63 7.97 8.29 8.35 7.01 3.61 18........................... 6.46 6.49 6.25 6.85 8.18 7.82 8.67 7.99 8.33 8.36 6.90 3.69 25........................... 6.70 6.72 6.47 7.10 8.21 7.83 8.74 8.01 8.38 8.37 6.98 3.76 Number of issues2...................... 8 20 5 5 108 18 30 38 30 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Averages of daily figures for bonds maturing or callable in 10 years or arately. Because of a limited number of suitable issues, the number more. State and local govt, bonds: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. Corporate bonds: Averages of daily figures. Both of these 23, 1967, Aaa-rated railroad bonds are no longer a component of the series are from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios are 2 Number of issues varies over time; figures shown reflect most recent based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on 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. Govt, bonds: adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 o r . n m S v g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P 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 o r n t n a s ­ ­ Utility na F n i c ­ e i t n o d ta e l x 1 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 1968........................ 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1969........................ 64.49 79.0 68.5 97.84 106.30 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 1969—Apr............... 67.73 84.2 69.5 101.26 110.68 49.53 65.63 56.61 59.41 50.88 44.34 72.38 30.14 11,287 5,153 May............. 66.68 82.3 70.3 104.62 114.53 49.97 66.91 58.50 61.50 50.46 45.75 75.10 31.12 12,222 6,451 June.............. 64.84 78.6 68.9 99.14 108.59 46.43 63.29 55.20 58.07 47.70 43.39 68.62 29.14 11,203 5,029 July.............. 64.75 78.5 68.2 94.71 103.68 43.00 61.32 52.40 55.00 42.80 42.31 64.56 25.78 10,872 4,215 Aug.............. 65.18 76.1 68.4 94.18 103.39 42.04 59.20 52.09 54.85 41.45 41.34 65.29 26.44 9,608 3,531 Sept.............. 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 Oct............... 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 Nov.............. 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 4,396 Dec.............. 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 1970—Jan............... 58.33 69.7 62.2 90.31 99.41 37.62 55.72 50.61 53.58 37.51 38.76 66.19 26.48 10,532 4,062 Feb............... 61.63 71.7 62.4 87.16 95.73 36.58 55.24 48.76 51.29 36.06 38.55 65.01 25.61 11,500 3,830 Mar.............. 62.04 75.6 62.8 88.65 96.95 37.33 59.04 49.46 51.33 36.85 40.77 67.37 25.15 10,141 3,122 Apr.............. 60.89 62.8 71.9 85.95 94.01 35.59 55.76 47.51 49.47 34.99 39.49 64.07 23.56 10,146 3,150 Week ending— 1970—Apr. 4....... 62.57 63.5 74.9 89.70 98.13 37.09 59.74 49.90 52.02 36.74 41.07 68.01 25.02 9,647 2,913 11 , . . 62.14 63.6 73.0 88.51 96.77 37.31 59.11 49.08 51.11 36.37 40.62 66.80 24.56 9,010 2,509 18....... 61.43 62.8 72.2 86.56 94.55 36.49 57.76 47.84 49.77 35.32 39.93 64.60 23.68 10,064 2,874 25....... 59.59 62.2 70.0 84.26 92.20 35.59 55.69 46.45 48.36 34.26 38.66 62.48 22.84 9,806 3,096 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 Vi-hour trading day; beginning Jan. 1969 a computed as follows: U.S. Govt, bonds, derived from average market 4- hour trading day; beginning July 7, 1969, a 4^-hour trading day. yields in table at bottom of preceding page on basis of an assumed 3 per TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t c n e t r t ) ­ c F c h e ( e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c r p ( a o e p r t i n a e i c t n o r e ) / (t d h c o p o P h l r u u l i a a s c r s . r e ­ e s o ) f (t a d h L m o o l o u o la a s u r . n n s o ) t f C c t ( r r e p a o a n e t c n e t r t ) ­ c F c h e ( e a p e n r e s g t r ) e & 1 s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c t n o r e ) / (t d h c o p o P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o o l s a a u . r n n s o ) t f 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 1969...................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1969—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............ 7.97 .96 25.3 72.8 34.4 24.6 8.00 .90 22.6 70.4 28.8 20.1 Dec............ 8.07 1.06 25.4 71.9 35.3 25.0 8.08 .93 22.9 70.6 30.0 20.8 1970—Jan............. 8.16 1.08 25.0 69.3 36.1 25.1 8.13 .94 22.4 70.3 29.8 20.5 Feb............ 8.23 1.09 25.2 71.8 35.0 24.9 8.23 1.02 22.4 70.2 29.4 20.4 Mar............ 8.28 1.36 25.2 71.6 36.0 25.4 8.26 1.27 22.7 70.7 29.6 20.6 i Fees and charges—related to principal mortgage amount—include based on probability sample survey of characteristics of mortgage 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 □ MAY 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 Cus­ Net Adjusted debt/collateral value End of period B m ro a l k rg er in s c B us a t 2 n o k m s ers T b o y t — al to a d b n n m e a c e b e l e t i ­ r s t s’t c o a b f r n n m r e a c e e d l e e e t ­ i r s t s’ b t c e r r n e o b e x d k y d ­ e e i d t rs E pe n r d i o o d f s U tr e n i d r c e t ­ ­ Restricted j T ( u d a m o s e d t t b i e a l ­ t d ­ l lions 1969—Mar............... 5,590 2,780 8,370 8,318 3,294 5,024 Un 20 der 20-29 30 p - e 3 r 9 40 p - e 4 r 9 50 p - e 5 r 9 6 c 0 e p n e t r d o o f l­ Apr............... 5,570 2,760 8,330 8,044 3,077 4,967 cent cent cent or more lars) May.............. 5,670 2,770 8,440 8,474 3,084 5,390 June.............. 5,340 2,740 8,080 8,214 3,084 5,125 July.............. 5,170 2,700 7,870 7,515 2,783 4,732 1969—Mar.. 5.5 37.3 21.1 9.3 4.9 21.9 10,520 Aug............... 5,000 2,670 7,670 7,019 2,577 4,442 Apr.. 7.4 35.1 19.6 8.8 4.6 24.5 10,720 Sept............... 4,940 2,620 7,560 7,039 2,579 4,460 May. 4.8 37.4 18.9 8.5 4.7 25.6 10,770 Oct................ 5,040 2,570 7,610 7,243 2,753 4,490 June. 1.8 33.1 19.9 10.8 6.0 28.4 10,440 Nov............... 5,070 2,520 7,590 7,111 2,613 4,498 July.. 1.0 29.4 19.0 13.8 6.6 30.1 10,100 Dec............... 4,970 2,580 7,550 7,445 2,803 4,642 Aug.. 4.6 29.2 18.5 11.2 6.5 30.0 10,300 Sept.. 2.9 30.2 19.0 11.7 6.6 29.6 9,910 1970—Jan.r............. 4,680 2,430 7,110 6,683 2,626 4,057 Oct... 5.8 31.9 18.1 10.1 6.2 27.9 9,970 Feb.r............ 4,570 2,390 6,960 6,562 2,463 4,099 Nov.. 3.2 31.3 18.1 11.0 6.8 29.7 9,910 Mar.*........... 4,510 2,370 6,880 6,353 2,441 3,972 Dec.. 4.5 27.6 16.2 11.8 7.0 31.0 9,810 1970—Jan.r. 1.7 27.6 16.7 11.4 7.9 34.9 9,280 1 End of month data. Total amount of credit extended by member firms Feb. r 4.2 26.9 16.8 11.4 7.9 32.8 9,037 of the New York Stock Exchange in margin accounts, estimated from Mar.* 3.7 27.1 16.3 11.7 7.6 33.7 8,890 reports by a sample of 38 firms. 2 Figures are for last Wed. of month for large commercial banks re­ porting weekly and represent loans made to others than brokers or dealers Note.—Adjusted debt is computed in accordance with requirements set for the purpose of purchasing or carrying securities. Excludes loans col­ forth in Regulation T and often differs from the same customer’s net debit lateralized by obligations of the U.S. Govt. balance mainly because of the inclusion of special miscellaneous accounts Note.—Customers’ net debit and free credit balances are end-of-month in adjusted debt. Collateral in the margin accounts covered by these data ledger balances as reported to the New York Stock Exchange by all now consists exclusively of stocks listed on a national securities exchange. member firms that carry margin accounts. They exclude balances carried Unrestricted accounts are those in which adjusted debt does not exceed the for other member firms of national securities exchanges as well as balances loan value of collateral; accounts in all classes with higher ratios are of the reporting firm and of its general partners. Net debit balances are restricted. total debt owed by those customers whose combined accounts net to a debit. Free credit balances are in accounts of customers with no unfulfilled commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use until withdrawn. EQUITY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS SPECIAL MISCELLANEOUS ACCOUNT BALANCES (Per cent of total debt, unless otherwise indicated) AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total, unless otherwise indicated) Total Equity class (per cent) debt Equity class of accounts (mil­ in debit status End of lions Net Total period d o o f l­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End of period c st r a e t d u i s t 60 per cent Less than ( b m a i l l a l n io c n e s lars)! or more 60 per cent of dollars) 1969—Mar.. 5,590 22.1 27.9 20.5 9.5 5.2 14.8 1969—Mar.................... 52.9 40.9 6.1 5,400 Apr.. 5,570 24.0 26.2 20.0 9.5 4.9 15.4 52.5 42.5 5.0 5,120 May . 5,670 23.0 26.4 19.0 9.7 5.2 16.8 52.2 42.3 5.5 5,020 June. 5,340 17.5 25.7 19.0 11.7 7.2 18.7 54.7 39.7 5.7 5,110 July.. 5,170 14.4 24.3 18.3 13.3 8.4 21.1 July.................... 51.4 42.0 6.6 4.950 Aug.. 5,000 17.8 24.4 18.3 12.6 7.8 19.1 53.0 40.0 6.9 4,880 Sept.. 4,940 17.0 23.0 18.4 12.5 8.6 20.4 52.6 40.7 6.7 4,800 Oct... 5,040 20.4 22.5 18.8 11.8 8.4 18.0 52.8 40.8 6.4 4,780 Nov.. 5,070 16.9 23.5 17.8 12.2 8.9 20.6 54.8 37.8 7.3 4,670 Dec.. 4,690 16.6 22.3 17.0 12.8 9.5 21.8 54.8 37.3 7.9 4,760 1970—Jan.r. 4,680 13.8 21.0 16.1 13.4 10.8 24.9 1970—Jan.r.................. 53.0 38.2 8.7 4,620 Feb. ' 4,670 15.7 21.1 16.3 13.3 11.1 22.5 Feb.r.................. 53.0 38.3 8.8 4,420 Mar.* 4,500 15.3 20.3 15.8 13.4 11.2 23.9 54.0 34.8 11.2 4,430 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

MAY 1970 □ 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 on— Placed through Placed End of period dealers * directly2 Accepting' banks F.R. Banks Total Im­ Ex­ Total Others ports ports All re B l a a n te k d Other re B l a a n te k d Other Total Own Bills Own e F i o g r n ­ U i n n i t t o ed U fr n o it m ed Other bills bought acct. corr. States States 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 1,198 983 215 193 191 2,022 997 829 1,778 1967........................ 16,535 n.a. 4,901 n.a. 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968........................ 20,497 n.a. 7,201 n.a. 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969—Mar.............. 23,681 n.a. 9,003 n.a. 14,678 4,464 1,452 1,185 266 94 122 3,787 1,460 872 2,133 Apr............... 24,390 n.a. 10,076 n.a. 14,314 4,510 1,478 1,223 255 142 125 2,765 1,523 875 2,112 May............. 25,305 n.a. 9,931 n.a. 15,374 4,668 1,387 1,179 208 76 183 3,022 1,591 910 2,166 June............. r26,007 602 9,557 r643 15,205 4,880 1,413 1,183 231 41 159 3,186 1,673 967 2,240 July.............. r28,341 889 9,463 r975 17,014 4,991 1,388 1,123 264 40 162 3,402 1,779 1,006 2,206 Aug.............. r29,515 r949 10,360 *1,300 16,906 5,145 1,390 1,108 282 62 159 3,535 1,791 1,084 2,271 Sept.............. '29,663 954 10,917 *■1,641 16,151 5,232 1,351 1,044 308 37 159 3,685 1,880 1,063 2,289 Oct............... r31,881 n ,088 10,998 *•2,644 17,151 5,256 1,335 1,058 277 41 149 3,730 1,913 1,061 2,282 Nov.............. *■33,551 1,200 11,324 *•2,933 18,094 5,212 1,341 1,076 266 49 146 3,676 1,850 1,063 2,299 Dec............... 31,624 1,216 10,601 2,993 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970—Jan............... r34,277 1,266 10,772 *•4,177 18,062 5,288 1,439 1,123 316 83 147 3,619 1,863 1,096 2,329 Feb............... 35,935 >•1,223 11,604 4,696 18,364 5,249 1,408 1,110 298 56 152 3,632 1,864 1,054 2,331 Mar.............. 37,079 1,223 12,411 5,210 18,235 5,352 1,398 1,156 242 52 170 3,732 1,891 1,113 2,349 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 loans assets— commitments 3 End of period M ga o g r e t­ Other G U o .S vt . . g S l a o o t n c a v d a t t e l . o C r t a o h a n r t e d p e r o 1 ­ Cash O as t s h e e ts r g r l e T i e a a t s n o i n b e e e t r i d s a r v l a i l e ­ l D i e t p s o 2 s­ l O ia t t i b e h i s e li r ­ G r c e o e s a u n e c e n r ­ v r t a s e l cla ( s i s n i fi m ed o n b t y h s m ) aturity accts. 3 or 3-6 6-9 Over Total less 9 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. n.a. 2,820 1965.............. 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 n.a. n.a. n.a. 2,697 1966.............. 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 n.a. n.a. n.a. 2,010 1967.............. 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968.............. 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 1969.............. 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1969—Mar... 54,005 1,562 3,990 194 10,649 900 1,293 72,593 65,759 1,476 5,359 778 1,266 1,171 3,214 Apr__ 54,209 1,519 3,900 199 10,721 792 1,270 72,610 65,575 1,663 5,372 796 1,270 1,241 3,308 May... 54,442 1,713 3,821 197 10,800 897 1,288 73,159 65,888 1,843 5,428 818 1,237 1,255 3,310 June... 54,672 1,633 3,618 192 11,029 865 1,306 73,316 66,243 1,664 5,409 843 1,190 1,216 3,249 July... 54,887 1,539 3,634 201 10,982 845 1,303 73,392 66,091 1,863 5,438 787 1,202 1,170 3,158 Aug.... 55,068 1,717 3,613 201 10,983 846 1,297 73,724 66,193 2,038 5,492 728 1,157 1,153 3,039 Sept.. . 55,188 1 ,732 3,536 190 10,990 833 1,327 73,796 66,519 1,796 5,481 756 1,097 1,037 2,890 Oct.. .. 55,346 1,725 3,359 191 10,885 791 1,339 73,638 66,344 1,785 5,509 721 486 466 1,135 2,808 Nov.. . 55,497 1,867 3,321 196 10,863 820 1,343 73,914 66,505 1,853 5,556 677 463 483 1,082 2,705 Dec__ 55,822 1,839 3,282 193 10,845 919 1,307 74,206 67,086 1,585 5,535 584 485 452 946 2,467 1970—Jan.... 55,860 1,861 3,276 204 10,894 780 1,360 74,235 66,997 1,708 5,531 576 454 516 912 2,457 Feb.*-.. 55,966 2,122 3,303 190 10,938 884 1,353 74,755 67,255 1,918 5,582 549 458 496 882 3,385 Mar.. . 56,119 2,080 3,274 194 11,212 848 1,436 75,164 67,885 1,913 5,596 648 478 476 807 2,409 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 sav­ ings bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 SAVINGS INSTITUTIONS □ MAY 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 i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets Statement value: 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: 1966, 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5,573 11,284 10,881 1969- 189,492 11 ,193 4,790 3,204 3,199 81,784 69,068 12,716 70,150 5,626 11,416 9,323 Feb.r......................... 189,832 11,165 4,788 3,203 3,174 81,766 69,293 12,473 70,299 5,632 11,522 9,448 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 10,741 195,932 10,490 4,089 3,252 3,149 83,596 71,376 12,220 71,569 5,835 13,406 11,018 Nov............................ 196,661 10,510 4,118 3,249 3,143 83,980 71 ,719 12,261 71 ,710 5,900 13,580 10,981 Dec............................ 197,230 10,558 4,159 3,264 3,135 83,792 71,290 12,502 72,127 5,901 13,805 11,047 1970—Jan............................. 197,677 10,962 4,532 3,242 3,188 84,764 71,542 13,222 72,340 5,923 14,060 9,628 Feb............................ 198,506 10,980 4,527 3,250 3,203 85,021 71,600 13,421 72,527 5,984 14,295 9,699 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 commitments3 Total assets— End of period M ga o ge rt s ­ s G U e it o c i . e u S v s r t . . ­ Cash Other1 lia T b o il t i a ti l e s S c a a v p i i n ta g l s R a d p n e i r v s d o e i f d r u i v e t n s e d ­ s m ro B o w n o e e r­ d y2 p L ro o i c a n e 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 t g s r d i t o a a o d n t f d ­ 1961...................... 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1 ,136 n.a. 1,872 1962...................... 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 n.a. 2,193 1963...................... 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 n.a. 2,572 1964...................... 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 n.a. 2,549 1965...................... 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 n.a. 2,707 1966...................... 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1,270 2,136 n.a. 1,482 1967...................... 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 n.a. 3,004 1968...................... 130,802 9,555 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 n.a. 3,584 1969...................... 140,169 8,715 2,443 11,026 162,353 135,494 11 ,176 9,783 2,426 3,474 n.a. 2,812 1969—Mar........... 133,012 10,160 2,548 10,019 155,762 133,502 10,298 5,631 2,649 3,682 1,688 4,373 Apr............ 134,038 9,892 2,378 10,027 156,358 132,986 10,296 6,095 2,805 4,176 1,787 4,601 May........... 135,026 9,892 2,421 10,464 157,826 133,480 10,285 6,283 2,916 4,862 1,676 4,607 June........... 136,242 9,467 2,529 10,363 158,627 134,839 10,674 6,768 3,007 3,339 1,532 4,373 July........... 137,107 9,199 1,957 10,371 158,634 133,729 10,671 7,392 2,978 3,824 1,346 4,145 Aug............ 137,951 9,142 1,902 10,635 159,630 133,721 10,669 7,885 2,874 4,471 1,148 3,775 Sept............ 138,618 9,007 1,931 10,723 160,279 134,600 10,663 8,295 2,749 3,972 1,057 3,530 Oct............. 139,226 8,906 1,910 10,798 160,840 134,194 10,662 8,783 2,648 4,553 1,023 3,293 Nov........... 139,676 9,011 2,114 11,055 161,856 134,420 10,655 9,123 2,539 5,119 882 3,079 Dec............ 140,209 8,553 2,441 10,959 162,162 135,489 11,226 9,754 2,454 3,239 807 2,812 1970—Jan............. 140,345 8,455 1,866 11,020 161,686 134,072 11,249 10,230 2,300 3,835 772 2,738 Feb.r......... 140,568 8,468 2,086 11,343 162,465 134,277 11,246 10,262 2,202 4,478 846 2,815 Mar.*......... 140,885 8,578 2,226 11,694 163,383 135,938 11,242 10,044 2,184 3,975 1,091 3,066 1 Includes other loans, stock in the Federal home loan banks, other Note.—Federal Home Loan Bank Board data; figures are estimates for investments, real estate owned and sold on contract, and office buildings all savings and loan assns. in the United States. Data are based on and fixtures. monthly reports of insured assns. and annual reports of noninsured assns. 2 Consists of advances from FHLB and other borrowing. Data for current and preceding year are preliminary even when revised. 3 Insured savings and loan assns. only. Data on outstanding commit­ Figures for Jan. and June 1968 reflect conversion of one savings and loan ments are comparable with those shown for mutual savings banks (on assn. to a mutual savings bank. Figures for June 1968 also reflect exclu­ preceding page) except that figures for loans in process are not included sion of two savings and loan assns. in process of liquidation. Data for above but are included in the figures for mutual savings banks. May 1969 reflect conversion of one savings and loan assn. to a commercial bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 land Assets Liabilities and capital operations) cooperatives credit banks banks End of period Ad­ Cash Mem­ Deben­ Loans Loans v m a t n e o c m e ­ s I m nv e e n s ts t­ p a o d n s e i d ­ ts B n a o o n t n e d d s s po d b s e e i ­ r ts C s a to p c it k al M l g o a a o g n r e s t­ n t a u o n r t e e d s s c a o t o i t v o p e e s r­ D t e u b re e s n­ co a d u n is n d ­ ts D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 1966............. 6,935 2,523 113 6,859 1,037 1,369 4,266 3,800 1,290 1,074 2,924 2,786 4,958 4,385 1967............. 4,386 2,598 127 4,060 1,432 1 ,395 5,348 4,919 1,506 1,253 3,411 3,214 5,609 4,904 1968............ 5,259 2,375 126 4,701 1,383 1,402 6,872 6,376 1,577 1,334 3,654 3,570 6,126 5,399 1969............ 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1,473 4,275 4,116 6,714 5,949 1969—Mar... 5,331 2,181 97 4,674 1,244 1,443 7,417 7,193 1,663 1,425 3,921 3,743 6,317 5,535 Apr... 5,764 2,051 99 5,021 1,179 1,447 7,574 7,317 1,648 1,426 n.a. 3,907 6,412 5,719 May.. 5,971 2,393 73 5,521 1,202 1,448 7,718 7,241 1,614 1,395 n.a. 4,044 6,483 5,716 June.. 6,413 1,964 141 5,521 1,278 1,451 7,891 8,077 1,594 1,391 4,355 4,176 6,557 5,716 July. . 7,053 1,496 88 6,021 928 1,435 8,125 8,093 1,594 1,387 n.a. 4,310 6,605 5,867 Aug... 7,543 1,543 56 6,572 848 1,438 8,577 8,360 1,572 1,422 n.a. 4,397 6,644 5,867 Sept... 7,940 1,657 97 7,072 891 1,444 8,999 8,815 1,585 1,420 4,329 4,357 6,676 5,927 Oct... 8,439 1,654 90 7,572 865 t ,457 9,500 9,756 1,680 1,429 n.a. 4,192 6,700 5,950 Nov.. 8,802 1,968 110 8,172 939 1,467 10,009 10,205 1,705 1,445 n.a. 4,152 6,704 5,949 Dec... 9,289 1,862 124 8,422 1,041 1,478 10,541 10,511 1,732 1 ,473 4,275 4,116 6,714 5,949 1970—Jan.. . 9,852 1,536 72 8,822 806 1,503 11,070 10,717 1,804 1 ,508 4,371 4,161 6,738 5,938 Feb... 9,937 1,787 93 9,171 802 1,537 11,540 11,659 1,844 1,577 4,474 4,311 6,777 '6,032 Mar... 9,745 2,870 107 9,825 986 1,558 12,016 12,227 1,840 1,576 4,644 4,422 6,833 6,032 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, MARCH 31, 1970 Cou­ Amount Cou­ Amount Cou­ Amount Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon (millions and maturity rate of dollars and maturity rate of dollars) and maturity rate of dollars) Federal home loan banks Federal National Mortgage Federal land banks Notes Association—Cont. Bonds: 7/25/69 - 5/25/70........ 500 Debentures: 10/1/57 - 10/1/67-70. . 41/2 75 9/25/69 - 7/27/70........ 8.40 650 11/10/69 - 5/10/71. . .. 8.20 400 2/15/57 - 2/15/67-72.. 4Ks 72 11/25/69 - 9/25/70___ 8^ 650 4/10/69 - 6/10/71........ 6.85 250 2/14/58 - 4/1/70......... 3^2 83 12/22/69 - 11/25/70. . . 8.70 250 12/12/69 - 7/12/71 8.60 400 12/20/67 - 4/20/70. . . . 6.20 362 3/25/70 - 3/25/71 ........ 7.70 850 8/23/60 - 8/10/71 ........ 4H 63 1/20/69 - 6/22/70........ 6.70 174 9/11/61 - 9/10/71........ 41/2 96 3/20/69 - 6/22/70........ 634 203 9/10/68 - 9/10/71 ........ 534 350 1/5/60 - 7/20/70......... 5H 85 Bonds: 5/10/69 - 11/10/71. . .. 6.85 350 3/20/68 - 7/20/70........ 6.00 241 2/26/68 - 3/25/70........ 6.00 200 3/10/70 - 2/10/71........ 634 500 7/15/69 - 8/20/70........ 8.15 270 3/25/69 - 3/25/70........ 6.85 346 2/10/60 - 2/10/72........ 5H 98 12/23/68 - 10/20/70. . . 6.30 223 4/25/68 - 4/27/70........ 6.00 225 3/10/69 - 3/10/72........ 634 250 4/21/69 - 2/23/71 ........ 6.80 431 10/25/68 - 5/25/70___ 5.80 300 10/14/69 - 3/10/72___ 634 200 2/20/70 - 4/20/71........ 81/! 300 6/25/69 - 6/26/70........ 8.00 550 12/11/61 - 6/12/72. 4M 100 5/1/56 - 5/1/71 ........... 3 Vi 60 4/25/69 - 8/25/70........ 6.70 200 2/10/70 - 6/12/72........ 8.70 300 7/15/69 - 7/20/71........ 8.15 270 8/25/69 - 8/25/70........ 8.20 650 6/10/70 - 9/11/72........ 7.40 200 10/20/69 - 7/20/71 8.45 232 10/27/69 - 10/27/70. . . 8% 650 11/10/69 - 12/11/72. . . 8.00 200 10/20/68 - 10/20/71. . . 6.00 447 1/26/70 - 1/26/71 ........ 8.63 600 12/12/69 - 3/12/73___ 8.30 250 8/20/68 - 2/15/72........ 5.70 230 2/25/69 - 2/25/71........ 6.60 200 6/12/61 - 6/12/73........ 414 146 9/14/56 - 9/15/72........ 3K 109 7/25/69 - 2/25/71 ........ 8.00 400 3/10/70 - 9/10/73........ 8.10 300 9/22/69 - 9/15/72........ 8.35 337 9/25/69 - 4/26/71........ 8M 250 9/10/69 - 9/10/74........ 7.85 250 10/23/72 - 10/23/72. . . 5J"8 200 5/26/69 - 5/25/71 ........ 7.00 350 2/13/62 - 2/10/77........ 41/2 198 2/20/63 - 2/20/73-78 . . 43^ 148 2/25/70 - 6/25/71 ........ 8.45 650 1/20/70 - 7/20/73........ 8.45 198 10/27/69 - 11/26/71 . . . 8.20 250 2/20/72 - 2/20/74........ 4% 155 11/25/69 - 2/25/72___ 8.20 200 2/20/70 - 1/20/75........ 220 2/25/70 - 2/26/73........ 8.35 350 Banks for cooperatives: 4/20/65 - 4/21/75........ 200 1/26/70 - 1/25/74........ 8.40 300 Debentures: 2/21/66 - 2/24/76........ 5.00 123 8/25/69 - 8/25/74........ 7.65 201 10/1/69 - 4/1/70. . 8.20 282 7/20/66 - 76/20/7........ 5^ 150 11/25/69 - 11/25/74... 8.00 249 11/3/69 - 5/4/70. . 8.05 273 5/2/66 - 4/20/78.......... 150 3/25/70 - 2/25/80........ 7.75 350 12/1/69 - 6/1/70. . 8.45 315 2/20/67 - 1/22/79........ 5.00 285 1/5/70 - 7/1/70. . . 8.65 286 2/2/70 - 8/3/70. . . 8.65 420 Federal National Mortgage Tennessee Valley Authority Association—Secondary Short-term notes............. 360 market operations Bonds: Discount notes...................... 3,997 Federal intermediate 6/1/69 - 6/1/74........... .50 100 Capital debentures: credit banks 11/15/60 - 11/15/85. . . 4.40 50 9/30/68 - 10/1/73......... 6.00 250 Debentures: 7/1/61 - 7/1/1986........ 4^ 50 Debentures: 7/1/69 - 4/1/70. 7.90 448 2/1/62 - 2/1/1987........ 4% 45 4/11/60 - 4/10/70......... 4^ 142 8/4/69 - 5/4/70. 814 493 5/15/67 - 5/15/92........ 5.70 70 6/14/68 - 6/10/70......... 6.60 400 9/2/69 - 6/1/70. c8 Vs 436 11/1/67 -.11/13/92. 6V8 60 6/10/69 - 7/10/70......... 7.38 400 10/1/69 - 7/1/70 8.20 352 10/15/69 - 10/15/94. . . 814 100 9/12/60 - 9/10/70......... 4^ 119 11/3/69 - 8/3/70 7.95 454 3/17/70 - 3/15/95........ 9.00 100 10/11/67 - 10/13/70. 5V4 400 12/1/69 - 9/1/70 c8.75 458 9/10/69 - 11/10/70........ 8.30 350 1/5/70 - 10/1/70 8.80 570 7/10/69 - 12/10/70........ 8.10 250 2/2/70 - 11/2/70 8.65 656 10/14/69 - 2/10/71........ 8.75 400 3/2/70 - 12/1/70 8.10 333 3/11/68 - 3/11/71 ......... 6.00 350 3/2/70 - 3/1/73. 8.15 203 2/10/70 - 4/12/71.......... 8.75 500 Digitized for FRASER Note.—These securities are not guaranteed by the U.S. Govt.; see also note to table above. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 FEDERAL FINANCE □ MAY 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 Other debt Period B re u c d ei g p e t t s p t N e u e n x r e e d ­ t s i­ l N e in n e g d t ­ B l o u a u d y g t s ­ e 1 t s B d u u ( e r o d f p - i r g l c ) u e it s t P se d u t c e i b e u b l s r i t i c ­ A s P e t g i l c e u e u s s n r : 3 c i­ y S m L p e e e n s c a t s i c s a : c l b o I y u n O n v G t e t s o h s v t e ­ t r , S n L p o e e t s c e s i s a : 4 l b E o T q r i o u n r t o g a a w l l s: ­ b o a T p s l i u r a e n e n r r g a y a c ­ t e ­ Other f m i n i n e n o e a a g f n t n , 5 c s ­ t p o r s r w a h i n t v n i o s p a e f t 2 r e e ­ r issues Fiscal year: 196 6 130,856130,820 3,832134,652 -3,796 2,633 4,041 2,470 774 354 3,076 -609 161 270 196 7 149,552153,201 5,053 158,254 -8,702 6,314 5,079 5,035 4,000 -482 2,838 -5,222 304 945 196 8 153,671 172,802 6,030178,833 -25,162 21,357 5,944 3,271 2,049 -1,119 23,100 -397 1,700 3,364 196 9 187,792183,080 1,476184,556 3,236 6,142 633 7,364 2,089 -1,384 -1,295 596 1,616 270 9,853 Half year: 1968—Jan.-June... 86,490 87,941 4,364 92,307 -5,816 2,915 4,294 2,192 1,472 -683 4,228 -266 1,668 2,989 July-Dee__ 82,899 92,210 977 93,186 -10,287 10,450 1,446 -280 1,487 -384 11,076 -598 27 -1,363 9,853 1969—Jan.-June... 104,893 90,870 499 91,370 13,523 -4,308 -813 7,643 603 -1,000-12,371 1,194 1,589 1,633 July-Dee__ 90,818 97,562 1 ,355 98,917 - 8,099 14,505 -429 3,939 326 9,811 -567 315 -1,964 Month: 1969—Ma r r13,734 15,637 15,639 -1,906 782 -91 150 122 418 -114 r —50 '1,323 Apr............ 23,596 15,922 50 15,972 7,625 -1,080 -559 1,253 -436 -2,456 3,380 2,119 330 May........... 13,346 15,279 485 15,764 -2,418 1 ,599 -137 2,585 361 -1,485 2,458 -1,843 -400 June........... 23,805 13,895 -373 13,522 10,283 -6,345 -1 1,885 169 -8,587 186 920 -590 July............ 12,542 15,542 152 15,695 -3,153 3,292 31,316 -21 191 34,438 -217 -484 -402 Aug............ 14,999 16,790 316 17,106 -2,107 3,175 -829 1 ,543 124 679 1,651 -62 -285 Sept............ 20,406 17,167 448 17,616 2,790 498 -643 521 -291 -375 2,608 577 770 Oct............. 11,832 17,602 342 17,944 -6,112 3,709 -47 -826 99 4,388 1,166 19 577 Nov............ 14,332 15,225 236 15,461 -1,130 3,718 -141 780 103 2,695 958 -4 -610 Dec............ 16,704 15,232 -140 15,092 1 ,612 113 -85 1 ,938 103 -2,012 1,099 269 -430 1970—Ja...............n 16,303 16,564 -164 16,399 -97 -654 -64 -717 193 -194 ,100 6775 62,166 Feb............. 14,929 14,990 -104 14,886 43 1 ,275 -789 1,204 -579 -139 191 -436 -149 Mar............ 13,110 16,301 238 16,539 -3,429 3,161 21 770 97 2,314 316 -768 664 I Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts ba G la o n ld ce Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S i p s G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t c s e s i s a : 4 l E p T h q u b o e u b y t l a l a d i l l c s: s c p p o G r o N r i n o v p o s v s a w o . t t — . r e - e 7 d Fiscal year: 196 6 766 10,050 102 10,917 319,907 13,377 51,120 13,664 3,810 264,690 10,436 196 7 1,311 4,272 112 5,695 326,221 18,455 56,155 17,663 3,328 267,529 9,220 196 8 1,074 4,113 111 5,298 347,578 24,399 59,374 19,766 2,209 290,629 10,041 196 9 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,071 Calendar year 196 8 703 3,885 111 4,700 358,029 15,064 59,094 20,318 1 ,825 291,855 21,481 196 9 1,312 3,903 112 5,327 368,226 13,820 70,677 21,250 825 289,294 30,578 Month: 1969—Mar... 783 3,891 111 4,786 359,546 15,134 61,015 20,827 825 292,012 22,696 Apr.. . 950 7,105 111 8,166 358,466 14,575 62,268 20,391 825 289,557 23,520 May. . 621 4,976 112 5,708 360,065 14,437 64,853 20,752 825 288,072 24,043 June.. 1,258 4,525 112 5,894 353,720 14,249 66.738 20,923 825 279,483 24,991 July.. . 935 4.630 112 5,677 357,012 15,565 67,716 21,116 825 283,921 25,809 Aug.. . 894 3,020 112 4,026 360,187 14,736 68,259 21,240 825 284,599 27,121 Sept... 1,003 5,519 112 6,634 360,685 14,093 68,779 20,950 825 284,224 27,734 Oct.... 954 4,402 112 5,468 364,394 14,045 67.959 21,044 825 288,612 29,038 Nov.. . 980 5,335 112 6.426 368,112 13,905 68.739 21,147 825 291,306 30,072 Dec.. . 1,312 3,903 112 5,327 368,226 13,820 70,677 21,250 825 289,294 30,578 1970—Jan... . 1,127 5,188 112 6.427 367,572 13,755 69.960 21,442 825 289,100 31,288 Feb.... 915 5,592 111 6,618 368,847 12,966 71,164 20,863 825 288,961 32,946 Mar... 1,192 5.630 111 6,934 372,007 12,987 71,935 20,959 825 291,275 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 4Represents 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 initial allocation of SDR’s of $867 million. mediate Credit Banks (FICB) and Banks for Cooperatives in Dec. 1968. 7 Includes debt of Federal home loan banks, Federal land banks, D.C. 3 Reflects transfer of publicly held CCC certificates of interest from ex­ Stadium Fund, FNMA (beginning Sept. 1968), FICB, and Banks for Cooperatives (beginning Dec. 1968). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o 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 ax s es Period Total Em tax p e lo s y a m n e d n t Excise Cus­ E a s n ta d te M r i e s ­ c. W he i l t d h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l G ce r i o p s ts s fu R n e d ­ s co P r n o ay l t l r ­ ibut S i e o l n f- s1 e in U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 2 t N ot e a t l taxes toms gift ceipts 3 taxes empl. Fiscal year: 1966.................................. 130,85642,811 18,486 5,851 55,44630,834 761 20,662 3,777 1,12925,56713,062 1,767 3,066 1,875 1967.................................. 149,55250,521 18,850 7,84561,52634,918 94626,047 1,776 3,659 1,86733,34913,719 1,901 2,978 2,108 1968.................................. 153,671 57,30120,951 9,52768,72629,897 1,23227,680 1,544 3,346 2,05234,62214,079 2,038 3,051 2,491 1969.................................. 187,79270,18227,25810,19187,24938,338 1,66032,521 1,715 3,328 2,35339,91815,222 2,319 3,491 2,916 Half year: 1968—Jan.-June............... 86,49030,08916,802 8,971 37,921 18,551 65515,001 1,439 2,011 1,08719,538 7,003 1,045 1,718 1,369 July-Dee................ 82,89933,736 5,515 47638,77515,494 78414,944 131 1,289 1,17917,544 7,834 1,213 1,417 1,405 1969—Jan.-June............... 104,89336,44621,743 9,71548,47422,844 87617,577 1,584 2,039 1,17422,374 7,388 1,106 2,074 1,511 July-Dee................ 90,81838,766 5,771 48144,05615,179 98217,057 131 1,270 1,283 19,741 8,242 1,263 1,496 1,824 Month: 1969—Mar........................ r13,734 6,015 843 2,858 3,999 5,189 223 2,470 134 63 198 2,865 1,156 197 308 237 Apr........................ 23,596 5,164 9,540 2,59812,106 5,554 231 2,555 958 162 206 3,881 1,160 224 631 271 May....................... 13,346 6,681 804 2,725 4,760 959 152 4,545 190 821 192 5,748 1,272 213 310 237 June....................... 23,805 6,244 4,171 29210,123 8,692 104 2,523 64 61 176 2,823 1,395 210 319 347 July........................ 12,542 6,005 548 150 6,404 1,196 126 2,510 124 244 2,879 1,419 222 221 328 Aug...................... 14,999 7,014 319 103 7,230 716 145 4,392 601 217 5,209 1,263 213 257 256 Sept........................ 20,406 5,948 3,912 84 9,776 5,673 122 2,655 111 51 205 3,022 1,295 215 254 292 Oct......................... 11,832 6,284 419 67 6,636 1,180 336 2,044 12 93 216 2,364 1,259 231 264 234 Nov...................... 14,332 7,108 160 33 7,236 778 144 3,547 343 187 4,078 1,606 185 222 370 Dec......................... 16,704 6,407 412 45 6,774 5,637 110 1,908 9 59 214 2,181 1,400 197 277 340 1970—Jan......................... 16,303 6,203 4,491 3510,660 1,252 125 2,179 111 129 254 2,674 1,154 195 286 208 Feb......................... 14,929 7,535 886 1,456 6,965 774 128 4,224 139 842 203 5,408 1,206 165 265 275 Mar........................ 13,110 6,091 1,235 3,907 3,419 4,559 320 3,006 146 64 221 3,436 1,192 202 322 300 Budget outlays4 Period Total t f i N e d o n e n a s ­ a ­ e l a I f n fa tl i . rs s S e p r a e a r ­ c c e h A c tu u g r l r e ­ i­ so N u u r r e a r a c ­ t l ­ es t m C r a a o e n n r m d c sp e ­ . d h e C o m v a u o e n u s m l d n i o n . - p g . E p m t d a o i u n w o a d c n n e a ­ r ­ w H e a e l n a f d a 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 o a o a t n c v n r ­ a s t s , - ­ 5 Fiscal year: 1966.................................. 134,652 56,785 4,490 5,933 3,679 2,035 7,135 2,644 4,523 31,294 5,920 11,285 2,292 -3,364 1967.................................. 158,254 70,081 4,547 5,423 4,376 1,860 7,554 2,616 6,135 37,602 6,897 12,588 2,510-3,936 1968.................................. 178,833 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.................................. 184,556 81,240 3,785 4,247 6,221 2,129 7,873 1,961 6,825 49,095 7,640 15,791 2,866 -5,117 1970*6............................... 197,885 79,432 4,113 3,886 6,343 2,485 9,436 3,046 7,538 57,097 8,681 17,821 3,620 -6,088 1971«6............................... 200,771 73,583 3,589 3,400 5,364 2,503 8,785 3,781 8,129 65,341 8,475 17,799 4,084 -6,639 Half year: 1968—Jan —June............... 92,307 41,778 2,429 93,186 39,823 1,907 2,133 4,928 1,269 4,501 1,033 3,061 23,893 3,665 7,608 1,324 -1,959 1969—Jan.-June............... 91,370 41,417 1,878 2,114 1,293 860 3,372 928 3,764 25,202 3,975 8,183 1,542 -3,158 July-Dee................. 98,917 40,588 1 ,941 1,839 5,479 1,520 4,610 1,827 3,161 26,020 4,148 8,630 1,592 -2,438 Month: 1969—Mar........................ 15,639 6,816 286 385 327 152 583 r —28 r520 4,405 715 1,411 '275 r — 208 15,972 6,934 377 353 448 199 537 46 632 4,373 695 1,407 226 -255 15,764 6,733 459 367 153 154 657 273 744 4,197 686 1,388 244 -291 June....................... 13,522 7,651 374 326 -701 141 625 -267 978 3,971 656 1,352 239-1,823 July........................ 15,695 6,560 324 319 659 223 613 249 411 4,299 660 1,364 272 -258 Aug......................... 17,106 6,868 299 337 1,130 368 858 311 524 4,336 669 1,440 279 -314 Sept........................ 17,616 6,767 357 294 1,801 286 784 225 666 4,219 693 1,513 225 -215 Oct......................... 17,944 7,267 374 327 1,108 263 964 588 654 4,484 694 1,220 248 -248 Nov........................ 15,461 6,303 443 267 393 188 735 228 398 4,239 710 1,571 249 -263 Dec......................... 15,092 6,822 145 296 385 192 655 224 509 4,443 722 1,521 319-1,139 1970—Jan.......................... 16,399 6,648 161 291 659 113 713 212 591 4,691 728 1,537 311 -256 Feb......................... 14,886 6,199 298 299 -187 109 571 158 719 4,510 719 1,614 241 -364 Mar........................ 16,539 6,608 312 325 76 181 683 257 532 5,019 801 1,686 303 -242 1 Old-age, disability, and hospital insurance, and Railroad Retirement Treasury Statement (beginning April 1969). Monthly back data (beginning accounts. July 1968) are published in the Treasury Bulletin of June 1969. 2 Supplementary Medical Insurance premiums and Federal employee 5 Consists of government contributions for employee retirement and retirement contributions. interest received by trust funds. 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ 6 Estimates presented in Jan. 1970 Budget Document. Breakdowns do ous receipts. not add to totals because special allowances for contingencies, Federal pay 4 Outlays by functional categories are now published in the Monthly increase, and allowance for revenue sharing, totaling $475 million for fiscal 1970 and $2,575 million for fiscal 1971, are not included. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES □ MAY 1970 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o b o t l s a i s c l Marketable C ve o r n t­ ­ Nonmarketable i S s p su e e c s ia 4 l debt 1 Total ible Sav­ Total Bills Certifi­ Notes Bonds 2 bonds Total 3 ings cates bonds & 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—Mar. 359.5 296.6 237.3 77.5 78.2 81.5 2.5 56.8 52.3 61.1 Apr. 358.5 294.2 235.0 75.3 78.2 81.4 2.5 56.8 52.2 62.3 May 360.1 293.3 234.1 75.3 78.9 79.8 2.5 56.7 52.2 64.9 June 353.7 284.9 226.1 68.4 78.9 78.8 2.5 56.4 52.2 66.8 July. 357.0 288.4 229.6 71.9 78.9 78.8 2.5 56.3 52.2 66.8 Aug. 360.2 289.9 231.2 74.0 78.5 78.7 2.5 56.3 52.1 68.4 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 1970—Jan.. 367.6 295.5 236.3 81.1 85.4 69.8 2.4 56.8 52.1 70.1 Feb. 368.8 295.4 236.0 81.2 91.4 63.4 2.4 57.0 52.1 71.4 Mar. 372.0 297.9 238.2 83.7 91.4 63.1 2.4 57.3 52.0 72.1 Apr. 367.2 293.3 234.0 79.7 91.3 63.1 2.4 56.9 52.0 71.8 1 Includes non-interest-bearing debt (of which $632 million on Apr. 30, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1970, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds, and the Federal postal saving bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U a e r o n u n .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 c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 O i m t n o t v i h r s e s c e s . r ­ 2 funds bonds securities 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 15.9 15.6 1964—Dec.............. 317.9 58.4 37.0 222.5 63.9 5.5 11.0 18.2 21.1 49.1 20.7 16.7 16.3 1965—Dec............... 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec............... 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.9 50.3 24.4 14.5 18.8 1967—Dec............... 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 25.1 51.2 22.9 15.8 18.9 1968—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—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 r13.0 r22.0 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 Dec............... 368.2 89.0 57.2 222.0 56.5 2.9 7.1 15.8 27.1 51.2 28.2 12.2 21.0 1970—Jan................ 367.6 88.6 55.5 223.5 54.3 2.9 7.2 16.4 28.3 51.1 29.6 12.1 21.5 Feb............... 368.8 89.4 55.8 223.6 52.7 2.9 HA 15.9 28.4 51.0 30.2 12.9 22.4 Mar.............. 372.0 90.4 55.8 225.9 55.2 2.9 7.0 15.2 27.7 50.9 30.8 13.8 22.4 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

MAY 1970 □ U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All holders: 1967—Dec. 31..................................................... 226,476 104,363 69,870 34,493 78,159 18,859 8,417 16,679 1968—Dec. 31.................................................... 236,812 108,611 75,012 33,599 68,260 35,130 8,396 16,415 1969—Dec. 31..................................................... 235,863 118,124 80,571 37,553 73,301 20,026 8,358 16,054 1970—Feb. 28..................................................... 235,968 117,796 81,171 36,625 77,104 19,330 10,557 11,182 Mar. 31..................................................... 238,195 121,272 83,729 37,543 75,890 19,329 10,551 11,155 U.S. Govt, agencies and trust funds: 1967—Dec. 31............................................. 1968—Dec. 31............................................. 15,402 2,438 1,034 1,404 4,503 2,964 2,060 3,438 1969—Dec. 31............................................. 16,295 2,321 812 1,509 6,006 2,472 2,059 3,437 1970—Feb. 28............................................. 16,212 2,002 622 1,380 6,608 2,805 2,413 2,384 Mar. 31............................................. 16,362 2,102 669 1,433 6,647 2,806 2,423 2,384 Federal Reserve Banks: 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—Dec. 31............................................. 57,154 36,023 22,265 13,758 12,810 7,642 224 453 1970—Feb. 28............................................. 55,823 34,128 20,935 13,193 14,130 6,953 233 379 Mar. 31............................................. 55,785 34,244 20,897 13,347 13,976 6,953 233 379 Held by private investors: 1967—Dec. 31............................................. 1968—Dec. 31............................................. 168,473 77,670 55,222 22,448 50,877 21,223 6,133 12,569 1969—Dec. 31............................................. 162,414 79,780 57,494 22,286 54,485 9,912 6,075 12,164 1970—Feb. 28............................................. 163,933 81,666 59,614 22,052 56,366 9,572 7,911 8,419 Mar. 31............................................. 166,048 84,926 62,163 22,763 55,267 9,570 7,895 8,392 Commercial banks: 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—Dec. 31...................................... 45,173 15,104 6,727 8,377 24,692 4,399 564 414 1970—Feb. 28...................................... 42,026 12,222 4,425 7,797 25,603 3,428 531 243 Mar. 31...................................... 44,337 15,149 6,822 8,327 24,995 3,424 525 242 Mutual savings banks: 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 Dec. 31...................................... 2,931 501 149 352 1,251 263 203 715 1970—Feb. 28...................................... 2,867 538 137 401 1,248 225 428 427 Mar. 31...................................... 2,845 532 141 391 1,236 227 427 424 Insurance companies: 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—Dec. 31...................................... 6,152 868 419 449 1,808 253 1,197 2,028 1970—Feb. 28...................................... 6,128 802 408 394 1,922 378 1,779 1,248 Mar. 31...................................... 6,051 749 360 389 1,889 389 1,778 1,248 Nonfinancial corporations: 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—Dec. 31...................................... 5,007 3,157 2,082 1,075 1,766 63 12 8 1970—Feb. 28...................................... 4,725 2,894 1,985 909 1,731 79 13 8 Mar. 31...................................... 4,606 3,044 2,138 906 1,484 57 13 8 Savings and loan associations: 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—Dec. 31...................................... 3,851 808 269 539 1,916 357 329 441 1970—Feb. 28...................................... 3,729 793 254 539 2,018 245 350 323 Mar. 31...................................... 3,716 810 286 524 1,989 243 354 322 State and local governments: 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—Dec. 31...................................... 13,909 6,416 5,200 1,216 2,853 524 1,225 2,893 1970—Feb. 28...................................... 14,707 7,282 5,984 1,298 2,984 832 1,670 1,939 Mar. 31...................................... 14,068 6,847 5,631 1 ,216 2,953 751 1,591 1,926 All others: 1967 Dec 31...................................... 1968—Dec. 31...................................... 80,853 46,524 37,591 8,933 19,526 7,316 2,411 5,075 1969—Dec. 31...................................... 85,391 52,926 42,648 10,278 20,199 4,053 2,545 5,665 1970—Feb. 28...................................... 89,751 57,135 46,421 10,714 20,860 4,385 3,140 4,231 Mar. 31...................................... 90,425 57,795 46,785 11,010 20,721 4,479 3,207 4,222 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 5,758 commercial banks, 495 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 749 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 468 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 □ MAY 1970 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt, Period agency Total Within 1-5 5-10 Over Dealers and brokers Com­ All securities 1 year years years 10 years U.S. Govt, Other m b e a r n c k ia s l other securities 1969—Mar............................ 2,254 1,962 180 69 43 829 91 837 496 319 Apr............................ 2,270 1,998 165 69 39 803 97 840 530 387 May........................... 2,286 1,852 210 189 35 853 102 781 549 360 June........................... 2,491 2,171 199 86 34 1,039 107 849 496 395 July............................ 2,233 1,966 172 62 34 839 91 822 480 351 Aug............................ 2,286 1,965 233 51 36 948 104 776 459 311 Sept............................ 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 87 913 518 414 Dec............................ 2,551 2,162 281 55 54 1,029 98 965 460 381 1970—Jan............................. 2,385 2,058 233 58 36 971 92 922 402 410 Feb............................. 2,936 2,302 421 176 36 1,332 124 1,043 437 513 Mar............................ 2,681 2,238 298 114 31 1 ,208 92 921 460 501 Week ending— 1970—Mar. 4...................... 2,949 2,421 394 95 39 1,274 108 1,079 489 534 11...................... 2,697 2,242 318 109 30 1,308 108 885 396 397 18...................... 2,207 1,790 264 127 27 996 82 686 443 552 25...................... 3,631 3,109 356 137 28 1,723 99 1,316 492 640 Apr. 1...................... 2,461 2,105 224 96 36 936 87 836 603 452 8...................... 1,804 1,546 162 62 35 836 68 552 349 278 15...................... 2,025 1,816 147 43 20 877 56 669 422 404 22...................... 1,908 1,685 161 38 24 799 66 651 391 475 29...................... 2,180 1 ,980 130 41 29 913 80 685 502 319 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 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e o ie u n v s r c t i . y ­ Period sou A r U ces Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r i a­ o A th U er 1969—Mar............... 2,230 2,119 -37 131 18 507 1969—Mar.......... 2,322 396 370 1,031 526 Apr............... 3,107 2,998 -60 116 54 740 3,392 963 497 1,086 847 May.............. 2,585 1,964 71 498 52 792 May......... 3,103 542 376 1,072 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 Oct................ 2,389 1,903 256 193 37 512 2,226 462 392 520 852 Nov............... 3,451 3,158 155 106 30 606 Nov.......... 3,692 1,050 712 856 1,073 Dec............... 3,607 3,266 205 100 35 564 Dec........... 3,689 1,036 651 884 1,119 1970—Jan................ 2,908 2,869 -2 22 20 529 1970-Jan............ 3,075 907 469 792 907 Feb................ 3,182 2,464 374 330 14 559 Feb........... 2,995 660 504 650 1,180 Mar............... 3,667 3,116 248 285 17 731 Mar.......... 3,719 958 943 588 1,229 Week ending— Week ending— 1970—Feb. 4 3,148 3,013 99 34 2 543 1970—Feb. 4... 2,854 669 476 652 1,056 11 3,184 2,275 495 412 2 456 11... 3,151 940 451 631 1,130 18........ 2,803 2,040 392 356 15 553 18... 3,029 384 445 598 1,603 25 3,222 2,479 365 353 26 626 25... 2,908 640 585 745 937 Mar. 4......... 3,734 3,045 321 336 33 756 Mar. 4. .. 3,079 836 748 628 868 11 3,613 3,005 277 303 28 687 11. .. 3,828 1,099 1,082 658 989 18........ 3,127 2,615 227 273 12 706 18... 3,573 815 770 614 1,375 25 , . 3,584 3,076 220 276 12 715 25. .. 3,236 805 808 575 1,049 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

MAY 1970 a GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, APRIL 30, 1970 (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. May 7, 1970. 3.002 Sept. 30, 1970....... 1,505 Oct. 1, 1971..,.. 1 Vi 72 1967-72.•2 Vi 2,577 May 14, 1970. 2,994 Oct. 1, 1970....... 1.301 Nov. 15, 1971.....53/s 1,734 Aug. 15 j 1970.... 4 4,129 May 21, 1970. 3.003 Oct. 8, 1970....... 1,305 Feb. 15, 1972..,...434 2,006 Aug. 15, 1971.... 4 2,806 May 28, 1970. 3.002 Oct. 15, 1970....... 1.301 Apr. 1, 1972,....IVi 34 Nov. 15; 1971.,..• 3% 2,760 May 31, 1970. 1,501 Oct. 22, 1970....... 1,303 May 15, ...43/4 5,310 1972.... 4 2,344 June 4, 1970. 3.002 Oct. 29, 1970....... 1.301 Oct. 1, 1972,.,...1% 33 1972.... 4 2,579 June 11, 1970. 2,998 Oct. 31, 1970....... 1,504 Apr. 1, 1973 ,...1% 34 Aug. 15, 1973.....4 3,894 June 18, 1970. 3.003 Nov. 30, 1970....... 1.501 May 15, 1973.,...734 1,157 Nov. 15, 1973,,..• 41/s 4,346 June 22, 1970f 4,508 Dec. 31, 1970....... 1.502 Aug. 15, 1973,.,...S Vs 1,839 Feb. 15; 1974,,..• 41/s 3,128 June 25, 1970. 3,013 Jan. 31, 1971....... 1.503 Oct. 1, 1973,.,...1% 30 May 15, 1974....AI/4 3,583 June 30, 1970. 1.702 Feb. 28, 1971....... 1,200 Apr. 1, 1974.....IVi 34 Nov. 15, 1974....• 37/s 2,240 July 2, 1970. 3.002 Mar. 31, 1971....... 1,201 Aug. 15, 1974..,...55/s 10,284 May 15, 1975-85..4% 1,214 July 9, 1970. 3,009 Apr. 30, 1971 ....... 1,200 Oct. 1, 1974.....Hi 23 June 15, 1978-83..31/4 1,549 July 16, 1970. 3,008 Nov.15, 1974.....5% 3,981 Feb. 15, 1980.....4 2,595 July 23, 1970. 3,007 Feb. 15, 1975,....534 5,148 Nov. 15, 1980....• 3 Vi 1,905 July 30, 1970. 3.002 Apr. 1, 1975..,...IVi May 15, 1985...,.3V4 1,083 July 31, 1970. 1.702 May 15, 1970..,...55/g 7,793 May 15, 1975,,, . .6 6*760 Aug. 15 3 1987-92..4% 3,813 Aug. 6, 1970. 1,203 May 15, 1970..,..63/g 8,764 Feb. 15, 1976......6% 3,739 Feb. 15, 1988-93..4 248 Aug. 13, 1970. 1,201 Aug. 15, 1970..,...63/s 2,329 May 15, 1976.....6 Vi 2,697 May 15, 1989-94. .41/8 1,555 Aug. 20, 1970. 1,198 Oct. 1, 1970..,..IVi 113 Aug. 15, 1976.....7 Vi 1,682 1990.....31/2 4,791 Aug. 27, 1970. 1.301 Nov. 15, 1970...,. .5 7,675 Feb. 15, 1977.... .8 1,856 1995..., 3 1,355 Aug. 31, 1970. 1,701 Feb. 15, 1971. • •5% 2,509 1998,..,• 3 Vi 4,152 Sept. 3, 1970. . 1.302 Feb. 15, 1971......734 2,924 Sept. 10, 1970.. 1.301 Apr. 1, 1971..,• • 1 Vi 35 Treasury bonds Sept. 17, 1970.. 1.303 May 15, 1971..,,..sy4 4,265 Mar. 15, 1966-71.. 2Vi 1,220 bonds Sept. 22, 1970f. 1,758 May 15, 1971.., . .8 4,173 June 15, 1967-72..2Vi 1,239 Investment Series B Sept. 24, 1970. . 1.302 Aug. 15, 1971,.,..8M 2,252 Sept. 15, 1967-72.. 2% 1,951 Apr. 1, 1975-80. .2% 2,408 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 ered3 Total Gener­ U.S. district Total Roads Veter­ Other al Reve­ HA A1 Govt. State and Other2 Edu­ and Util­ Hous­ ans’ pur­ obli­ nue loans stat. cation bridges ities4 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 2,437 727 120 2,838 1965.............. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966.............. 11,405 6,804 3,955 325 312 2,590 4,110 4,695 n.a. 11,303 3,738 1,476 1,880 533 3.667 1967.............. 14,766 8,985 5,013 477 334 2,842 4,810 7,115 n.a. 14,643 4,473 1,254 2,404 645 5.667 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 1969.............. 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,638 3,252 1,432 1,734 543 4,884 1969—Mar.. . 538 326 201 11 110 149 279 n.a. 537 261 96 71 3 107 Apr__ 1,801 1,007 785 9 539 738 525 n.a. 1,799 365 36 302 5 1,095 May... 1,110 637 273 177 23 266 340 504 n.a. 1.096 323 109 118 191 355 June... 737 517 181 39 97 155 486 n.a. 727 237 45 141 1 303 July... 1,097 826 261 10 405 245 446 n.a. 1.097 283 169 105 6 533 Aug.... 808 583 213 12 228 255 325 n.a. 803 209 155 82 2 353 Sept.... 559 361 106 49 43 100 130 329 n.a. 559 161 6 75 70 245 Oct__ 1,280 898 357 24 482 270 526 n.a. 1,275 379 40 265 69 523 Nov.... 886 489 358 33 5 102 360 422 n.a. 885 216 168 138 47 318 Dec__ 816 679 134 3 340 192 286 n.a. 816 211 221 97 289 1970—Jan.... 1,338 836 495 7 311 500 527 n.a. 1,327 316 91 304 608 Feb.... 1,212 900 300 12 346 264 602 n.a. 1,207 406 59 237 490 Mar.... 1,499 1,061 431 7 434 367 699 n.a. 1,493 359 202 224 623 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 □ MAY 1970 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total G U o . v S t . .2 a G g U e o n .S v c t . y . 3 and S U t l . a o S t c e . a l4 Others Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 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 1969................... 52,496 4,765 8,617 11,460 961 26,744 18,347 12,734 5,613 682 7,714 1969—Jan.......... 4,284 427 424 1,244 113 2,075 1,616 980 636 67 393 Feb.......... 4,086 443 450 974 174 2,045 1,237 842 395 72 736 Mar......... 3,514 382 453 520 61 2,098 1,344 835 509 98 657 Apr......... 5,780 412 981 1,627 12 2,748 1,917 1,268 649 68 762 May........ 4,608 410 950 1,088 85 2,076 1,382 871 510 10 684 June........ 4,056 419 351 710 45 2,530 1,786 1,272 514 50 694 July......... 5,014 421 940 1,052 124 2,478 1,889 1,279 609 40 553 Aug......... 3,314 377 600 794 117 1,427 944 685 259 72 410 Sept......... 3,958 353 587 531 60 2,427 1,701 1,222 479 74 652 Oct.r....... 5,420 440 1,782 1,254 11 1,933 1,282 969 313 20 630 Nov.r.... 4,069 300 450 853 92 2,374 1,390 1,164 226 83 902 Dec......... 4,440 380 650 812 65 2,531 1,860 1,346 514 32 640 1970—Jan.......... 6,109 413 1,648 1,314 133 2,601 2,080 1,595 485 62 460 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 u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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........................................... 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 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 June................................. 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.................................. 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 Oct.r............................... 115 144 95 202 52 16 676 69 120 225 219 Nov.*-.............................. 286 167 183 242 137 5 422 201 156 45 207 326 Dec.................................. 420 181 190 193 140 6 497 103 255 22 358 166 1970—Jan................................... 667 120 179 166 322 11 557 81 225 4 130 140 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 4 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

MAY 1970 n SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers All securities Bonds and notes Common and preferred stocks Period New issues Retirements Net change New Retire­ Retire­ Net issues ments change issues ments change In c v o e s s .1 t. Other In co ve s. s 1 t. Other I c n o ve s. s 1 t. Other 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 j 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--III.............. 8,280 4,112 4,167 4,732 1 j ?,49 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 II............... 9,688 4,323 5,365 5,365 1,504 3,861 1,960 2,363 1,055 1,764 905 599 Ill.............. n.a. n.a. n.a. 4,499 1,382 3,117 n.a. 2,008 n.a. 598 n.a. 1,410 IV.............. n.a. n.a. n.a. 4,710 1,609 3,101 n.a. 2,763 n.a. 500 n.a. 2,263 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 4 & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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 IQfiR................ . 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 5,347 1968--III.............. 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 Ill.............. 1,087 343 101 274 354 136 898 320 566 31 329 n.a. IV.............. 266 484 181 580 97 41 1,447 467 551 87 559 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 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a ti s o h n 3 Other Sales 1 Re t d io e n m s p­ s N al e e t s Total 2 po C si a t s i h o n3 Other 1958............. 1,620 511 1,109 13,242 634 12,608 1959............. 2,280 786 1,494 15,818 860 14,958 1969—Mar... 628 285 343 51,663 4,331 47,332 Apr... 654 348 306 52,787 4,579 48,208 1960............. 2,097 842 1,255 17,026 973 16,053 May.. 529 364 165 52,992 4,262 48,730 1961............. 2,951 1,160 1,791 22,789 980 21,809 June.. 474 338 136 49,401 3,937 45,464 1962............. 2,699 1,123 1,576 21,271 1,315 19,956 July... 503 260 243 46,408 4,167 42,241 Aug... 483 208 275 49,072 4,642 44,430 1963............. 2,460 1,504 952 25,214 1,341 23,873 Sept... 442 235 207 48,882 4,393 44,489 1964............. 3,404 1,875 1,528 29,116 1,329 27,787 Oct.... 564 269 295 50,915 4,572 46,343 1965............. 4,359 1,962 2,395 35,220 1.803 33,417 Nov... 417 277 140 49,242 4,079 38,163 Dec... 522 301 221 48,291 3,846 44,445 1966............. 4,671 2,005 2,665 34,829 2,971 31,858 1967............. 4,670 2,745 1,927 44,701 2,566 42,135 1970—Jan.... 523 303 220 44,945 3,959 40,986 1968............. 6,820 3,841 2,979 52,677 3,187 49,490 Feb... 407 249 158 48,202 4,209 43,993 1969............. 6,717 3,661 3,056 48,291 3,846 44,445 Mar... 451 289 162 47,915 4,046 43,869 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 □ MAY 1970 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 1965 1966 1967 1968 1969 I II III IV I II III IV Manufacturing Total (177 corps.): Sales.................................... 177,237195,738201,399225,740243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 Profits before taxes.............. 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes................ 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends............................ 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.):2 Sales.................................... 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes.............. 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes................ 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends................................... 2,527 2,729 3,027 3,082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.):3 Sales.................................... 112,341 122,094123,429140,879151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 Profits before taxes.............. 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 Profits after taxes................ 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 Dividends............................ 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales.................................... 16,427 19,038 20,134 22,109 24,593 5,184 5,389 5,737 5,799 5,714 5,923 6,631 6,325 Profits before taxes.............. 1,710 1,916 1,967 2,227 2,425 498 563 590 576 534 581 666 644 Profits after taxes................ 896 1,008 1,041 1,093 1,171 255 260 285 293 261 275 314 321 Dividends.................................... 509 564 583 616 661 150 155 155 156 162 165 164 170 Chemical and allied products (20 corps.): Sales.................................... 18,158 20,007 20,561 22,808 24,494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 6,183 Profits before taxes.............. 2,891 3,073 2,731 3,117 3,258 760 807 806 744 844 875 818 721 Profits after taxes................ 1,630 1,737 1,579 1,618 1 ,773 390 419 412 398 448 473 441 411 Dividends............................ 926 948 960 1,002 1,031 236 236 243 287 252 251 254 274 Petroleum refining (16 corps.): Sales.................................... 17,828 20,887 23,258 24,218 25,586 5,890 6,013 6,100 6,214 6,107 6,610 6,264 6,605 Profits before taxes.............. 1,962 2,681 3,004 2,866 2,941 767 692 740 667 726 728 750 737 Profits after taxes................. 1,541 1,898 2,038 2,206 2,224 592 520 561 534 562 558 554 550 Dividends................................... 737 817 1,079 1,039 1,123 253 255 258 273 282 273 282 286 Primary metals and products (34 corps.): Sales.................................... 26,548 28,558 26,532 30,171 33,674 7,150 8,427 7,461 7,133 7,671 8,612 8,448 8,943 Profits before taxes.............. 2,931 3,277 2,487 2,921 3,052 669 915 601 735 691 828 715 818 Profits after taxes................ 1,689 1,903 1,506 1,750 1,912 376 550 343 482 431 504 435 542 Dividends............................ 818 924 892 952 987 224 230 233 264 242 245 247 253 Machinery (24 corps.): Sales.................................... 25,364 29,512 32,721 35,660 38,719 8,371 8,864 8,907 9,517 8,957 9,757 10,542 9,463 Profits before taxes.............. 3,107 3,612 3,482 4,134 4,377 936 1,008 1,112 1,079 1,071 1,167 1,141 998 Profits after taxes................ 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends............................ 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales.................................... 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes.............. 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1,663 1,542 652 1,411 Profits after taxes................ 3,294 2,877 1,999 2,903 2,604 783 847 330 943 806 750 342 706 Dividends............................ 1,890 1,775 1,567 1,642 1,723 364 364 364 550 365 436 366 556 Public utility Railroad: Operating revenue............... 10,208 10,661 10,377 10,855 2,610 2,757 2,707 2,781 2,741 2,916 2,836 Profits before taxes.............. 979 1,094 385 634 126 206 116 186 128 220 149 Profits after taxes................. 815 906 319 568 110 175 108 174 98 173 140 Dividends............................ 468 502 538 517 116 136 98 166 116 136 100 Electric power: Operating revenue............... 15,816 16,959 17,954 19,421 21,075 5,106 4,553 4,869 4,892 5,480 4,913 5,370 5,312 Profits before taxes.............. 4,213 4,414 4,547 4,789 4,938 1,351 1,040 1,271 1,125 1,384 1,065 1,366 1,123 Profits after taxes................ 2,586 2,749 2,908 3,002 3,186 863 641 764 733 873 707 827 779 Dividends............................ 1,838 1,938 2,066 2,201 2,299 539 555 543 565 580 577 561 581 Telephone : Operating revenue............... 11,320 12,420 13,311 14,430 16,057 3,486 3,544 3,629 3,771 3,853 3,975 4,044 4,185 Profits before taxes.............. 3,185 3,537 3,694 3,951 4,098 971 989 990 1,001 1,070 1,043 979 1,006 Profits after taxes................ 1,718 1,903 1,997 1,961 2,080 525 441 493 502 540 523 497 520 Dividends............................ 1,153 1,248 1,363 1,428 1,493 351 318 396 363 368 371 373 381 1 Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federal Reserve to include accounting methods and other reporting procedures. affiliated nonelectric operations. 2 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 3 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts. of American Telephone and Telegraph Co.) published reports of companies. and for two affiliated telephone companies. Dividends are for the 20 Railroads: Interstate Commerce Commission data for Class I line- operating subsidiaries and the two affiliates. haul railroads. All series: Profits before taxes are income after all charges and before Electric power: Federal Power Commission data for Class A and B Federal income taxes and dividends. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a BUSINESS FINANCE A 49 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i s r ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a t l i s l p o o u i n w t m a ­ l p­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a t n a l i l s o p o u n i w t m a ­ l p ­ ances1 ances 1 1962............. 55.4 24.2 31.2 15.2 16.0 30.1 1968—11.... 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 43.9 51.7 23.8 27.9 47.7 1967............. 80.3 33.0 47.3 21.5 25.9 42.6 II.... 95.4 44.1 51.3 24.3 27.0 48.6 1968............. 91.1 41.3 49.8 23.1 26.7 45.9 III... 92.5 42.8 49.7 24.9 24.9 49.6 1969............. 93.7 43.3 50.5 24.6 25.9 49.1 IV... 91.4 42.4 49.0 25.2 23.8 50.5 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . , i Other G U o . v S t . . 1 Other taxes 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—11...................... 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 Ill.................... 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—1....................... 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 IV.................... 214.2 547.9 52.1 12.2 4.8 259.4 183.4 36.1 333.8 7.3 233.0 17.0 76.4 11 i Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations* books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PUNT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Durable d N ur o a n b ­ le Mining R ro a a i d l­ Air Other Electric and G a o s t her n C i o ca m ti m on u s ­ Other1 a T ( r n S a o n . t t A u e a ) a . l l 1963...................... 40.77 7.53 8.70 1.27 1.26 .40 1.58 3.67 1.31 4.06 10.99 1964...................... 46.97 9.28 10.07 1.34 1.66 1.02 1.50 3.97 1.51 4.61 12.02 1965...................... 54.42 11.50 11.94 1.46 1.99 1.22 1.68 4.43 1.70 5.30 13.19 1966...................... 63.51 14.96 14.14 1.62 2.37 1.74 1.64 5.38 2.05 6.02 14.48 1967...................... 65.47 14.06 14.45 1.65 1.86 2.29 1.48 6.75 2.00 6.34 14.59 1968...................... 67.76 14.12 14.25 1.63 1.45 2.56 1.59 7.66 2.54 6.83 15.14 1969...................... 75.56 15.96 15.72 1.86 1.86 2*51 1.68 8.94 2.67 8.30 16.05 19702.................... 83.58 17.61 17.19 1.94 2.36 2.91 1.64 11.15 2.58 9.68 16.50 1968—II............... 16.85 3.36 3.63 .43 .37 .58 .42 1.94 .68 1.62 3.81 66.29 Ill.............. 16.79 3.54 3.59 .39 .31 .64 .41 1.87 .74 1.61 3.69 67.77 IV.............. 19.03 4.16 3.94 .40 .38 .66 .47 2.16 .74 2.00 4.13 69.05 1969—1................ 16.04 3.36 3.22 .42 .38 .68 .38 1.88 .48 1.81 3.41 72.52 II............... 18.81 3.98 3.84 .48 .44 .66 .46 2.22 .77 2.00 3.97 73.94 Ill.............. 19.25 4.03 4.12 .47 .49 .53 .40 2.23 .80 2.11 4.07 77.84 IV.............. 21.46 4.59 4.53 .49 .55 .64 .44 2.61 .62 2.39 4.60 77.84 1970—I2.............. 17.76 3.68 3.56 .41 .45 .69 .37 2.28 .39 5.!93 80.00 II2............. 20.79 4.33 4.14 .47 .54 .80 .40 2.82 .70 6.60 81.78 1 Includes trade, service, construction, finance, and insurance. Note.—Dept, of Commerce and Securities and Exchange Commission 2 Anticipated by business. estimates for corporate and noncorporate business; excludes agriculture, real estate operators, medical, legal, educational, and cultural service, and nonprofit organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 50 REAL ESTATE CREDIT □ MAY 1970 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1- to 4-family houses4 Multifamily and Mortgage holders2 commercial properties5 type6 E pe n r d i o o d f h A e o r l l s d l ­ tu F i t i c n i n i o s a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t i c n i n i o s a a t n l i n ­ s ­ 1 O h e o t r h l s d e 3 ­ r h e A o r l l s d l ­ Total tu F i t i n i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ F w u H V n ri d A A t e te - — 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 55.8 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—IIP. 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—P... 375.8 302.6 19.6 53.5 26.0 9.3 16.7 349.8 239.1 203.7 35.4 110.6 89.6 21.0 89.4 260.4 IIP. 382.9 308.1 20.6 54.2 26.7 9.6 17.1 356.1 243.2 206.7 36.5 112.9 91.8 21.2 90.7 265.4 IIIp. 389.8 313.5 21.1 55.1 27.2 9.6 17.5 362.6 247.0 209.7 37.3 115.6 94.1 21.5 92.0 270.6 IVp. 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 92.8 277.2 1969—Ip... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 IIP. 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.5 123.4 101.0 22.4 96.6 286.3 IIIp. 418.5 335.5 24.9 58.1 29.3 10.1 19.1 389.2 263.4 222.5 40.9 125.8 102.9 22.9 IVp. 424.6 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-52. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings2 1 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar­ ven­ Total in­ guar­ ven­ sured anteed tional sured anteed tional 1941............................. 4,906 3,292 1,048 566 4,812 3,884 900 28 1945............................. 4,772 3,395 856 521 4,208 3,387 797 24 1964............................. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................. 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966............................. 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................. 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968............................. 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1967—1........................ 54,531 34,890 7,444 2,547 24,899 16,468 3,173 48,107 42,879 14,723 11,619 16,537 5,176 52 II...................... 55,731 35,487 7,396 2,495 25,596 16,970 3,274 48,893 43,526 14,947 11,768 16,811 5,316 51 Ill..................... 57,482 36,639 7,584 2,601 26,454 17,475 3,368 49,732 44,094 15,016 11,785 17,293 5,526 112 IV..................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968—1....................... 60,119 38,157 7,694 2,674 27,789 18,396 3,566 51,218 45,171 15,179 11,872 18,120 5,931 116 II...................... 61,967 39,113 7,678 2,648 28,787 19,098 3,756 51,793 45,570 15,246 11,918 18,406 6,108 115 Ill..................... 63,779 40,251 7,768 2,657 29,826 19,771 3,757 52,496 46,051 15,367 11,945 18,739 6,329 116 IV..................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1........................ 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II...................... 69,079 43,532 8,060 2,743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19,898 6,908 117 HI..................... 70,179 55,359 IV..................... 70,929 55,918 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

MAY 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 u A re - d g V u A ar - ­ Other i Farm Total Total in F s H u A re - d g V u A ar - - Other Farm anteed anteed 1945............................................ 976 6,637 5,860 1,394 4,466 766 1962............................................ 7,478 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 1963............................................ 9,172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964............................................ 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965........................................... 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966............................................ 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 1967............................................ 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968........................................... 7,925 7,153 719 346 6,088 772 69,973 64,172 11,961 5,954 46,257 5,801 1969........................................... 7,200 6,658 602 199 5,857 542 72,031 66,257 11,690 5,669 48,898 5,774 1969—Feb.r............................... 1,192 1,081 124 58 899 111 70,299 64,531 11,967 5,961 46,603 5,768 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 June................................. 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 Aug.................................. 532 495 44 13 438 37 71,250 65,388 11,824 5,799 47,765 5,862 Sept................................. 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 5,744 48,245 5,803 Nov................................. 464 446 39 8 399 18 71,710 65,915 11,762 5,720 48,433 5,795 Dec.................................. 803 774 48 8 718 29 72,127 66,353 11,744 5,697 48,912 5,774 1970—Jan................................... 599 572 34 8 530 27 72,340 66,621 11,696 5,660 49,265 5,719 Feb.................................. 1,163 1,113 61 14 1,038 50 72,527 66,836 11,675 5,638 49,523 5,691 i 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 outst anding 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 i r t s s * Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t i ­ t L e o rm ng ­ 2 Total i con­ pur­ Total 2 in- guar­ ven­ struc­ chase sured anteed tional tion 278 213 195 176 19 46 1963. 5,601 4,296 4,784 2,863 1,921 1,151 1945............. 1,913 181 1,358 5,376 1 1 9 9 6 6 4 5 . . 5 5 , , 5 0 6 0 5 7 4 5, ,3 0 3 2 5 5 5 5 , , 3 9 2 9 5 7 2 3 , , 8 0 4 7 6 4 2 2 , , 4 9 7 2 9 3 1 1 , , 1 0 9 4 9 3 1963............. 25,173 7,185 10,055 90,944 4,696 6,960 79,288 3,804 2,866 6,935 5,006 1,929 1,036 1 1 1 9 9 9 6 6 6 6 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 4 4 6 , , , 9 1 9 1 9 2 3 2 4 6 3 6 , , , 6 0 6 5 1 3 3 3 8 1 1 7 0 0 , , , 8 5 8 2 3 3 8 8 0 1 1 1 1 0 1 4 0 1 , , , 4 3 3 2 3 0 7 3 6 5 5 4 , , , 1 2 8 4 6 9 5 9 4 6 6 6 , , , 3 1 6 9 5 8 8 7 3 1 9 8 0 8 3 9 , , , 0 7 7 0 6 5 1 3 6 1968. 2 1 , , 7 5 3 27 4 4 1 , , 0 86 7 1 6 5 4 , , 2 3 5 8 9 6 4 3 , , 8 98 6 5 7 4 3 0 9 1 2 1 1 , , 4 3 3 8 2 2 5,531 1,500 9,289 8,434 855 1,041 1967............. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1 1 9 9 6 6 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 , , 9 8 8 3 3 2 4 4 , , 9 7 1 5 6 6 1 1 1 1, , 2 2 1 4 5 4 1 1 3 4 0 0 , , 8 2 0 0 2 9 7 6 , , 9 65 1 8 0 7 7 , , 6 0 5 1 3 2 1 1 2 17 4 , , 1 6 3 4 2 6 1969- 5 1 4 5 5 5 1 11 2 3 2 5 5, , 3 7 3 6 1 4 5 4 , , 4 98 2 3 3 3 34 4 1 9 1 1 , , 2 1 4 7 3 8 327 120 5,971 5,647 324 1,201 1969—Mar... 1,870 440 896 133,012 6,972 7,194118,846 514 72 6,413 6,054 359 1,276 Apr... 2,073 485 1,023 134,038 7,120 7,271 119,647 July........... 759 118 7,053 6,564 489 927 May.. 2,146 482 1,113 135,026 7,245 7,354120,427 Aug........... 630 139 7,544 6,872 672 847 June.. 2,415 495 1,345 136,242 7,402 7,408121,432 451 55 7,940 7,273 667 891 J A u u ly g . . . . . . 1 1 , , 9 9 1 7 8 4 4 3 2 9 1 3 1 1 , , 0 0 9 8 1 9 1 1 3 3 7 7 , , 9 1 5 0 1 7 7 7 , , 6 5 0 2 7 2 7 7 , , 5 4 3 6 8 8 1 1 2 2 2 2 , ,1 8 1 0 7 6 5 6 5 3 2 7 1 1 8 38 9 8 8, , 4 8 3 02 9 7 7 , , 9 7 4 7 6 9 6 8 6 5 0 6 9 8 3 65 8 Sept... 1,728 377 936 138,618 7,694 7,570123,354 564 77 9,289 8,434 855 1,041 Oct.... 1,698 365 862 139,226 7,770 7,600123,865 Nov... 1,330 286 652 139,676 7,822 7,616124,238 1970—Jan............ 708 145 9,852 8,744 1,108 786 Dec... 1,508 300 687 140,209 7,910 7,653124,646 Feb............ 384 299 9,937 8,717 1,220 801 136 388 9,745 8,501 1,243 985 1970—Jan.... 1,064 220 530 140,345 7,937 7,669124,739 Feb.r. 1,042 223 502 140,568 8,000 7,680124,888 Mar. p. 1,253 290 576 140,885 8,107 7,689125,089 2 1 S S e e c c u u r r e e d d o lo r a u n n s, s e a c m ur o e r d ti z lo e a d n q s u m ar a t t e u r r l i y n , g h i a n v i 1 n g y e m ar a o tu r r l i e ti s e 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. 2 Beginning with 1958, includes shares pledged against mortgage loans; beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note,—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ MAY 1970 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1 to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) Government- All residential Multifamily i underwritten Con­ E pe n r d io o d f Total F i i c n n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i i c n n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F 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 tutions tutions 1 1 1 9 9 96 4 4 1 5 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 4 1 . . . 3 2 2 1 1 1 7 5 4 6 . . . 7 7 9 3 9 8 4 . . . 4 5 6 2 5 5 9 . . . 9 7 0 2 3 3 0 . . . 5 7 6 2 2 8. . . 3 2 2 1 1 1 9 9 9 5 6 6 4 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 8 9 8 2 7 . . . 6 2 6 6 6 4 5 9 . . . 3 9 2 3 3 4 8 5 . . . 1 3 0 3 30 0 . . . 9 2 9 1 1 1 1 2 4 6 8 . . . 3 3 3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 1965............................. 212.9 73.1 42.0 31.1 139.8 1 1 9 9 6 6 5 6 2 2 5 6 0 4 . . 1 0 2 22 13 3. . 7 2 4 3 0 6 . . 3 9 4 3 0 7 . . 3 2 2 3 9 1. . 5 0 8 8. . 8 2 1 1 9 96 6 7 6 * .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 23 2 6 3 . . 1 6 7 7 6 9 . . 1 9 4 4 4 7 . . 8 4 3 3 1 2. . 5 3 1 15 4 6 7 . . 1 6 1967*............ 280.0 236.6 43.4 43.9 34.7 9.2 1968*........................... 251.2 83.8 50.6 33.2 167.4 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 ll * * .. . . . . . 2 2 6 7 9 4 . . 7 8 2 2 2 32 8 . . 5 3 4 4 2 1 . . 3 4 4 4 1 2 . .8 9 3 3 2 3. . 8 9 9 8. . 9 0 1967—1*...................... 224.9 76.4 45.2 31.2 148.4 III*. . . 280.0 236.6 43.4 43.9 34.7 9.2 II*..................... 227.8 77.3 45.7 31.5 150.6 Ill*.................... 232.0 78.3 46.6 31.7 153.7 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 II*.. .. 288.5 242.7 45.8 45.3 35.9 9.4 III*. . . 293.3 246.4 46.9 46.2 36.7 9.5 1968—1*...................... 239.1 81.0 48.1 32.9 158.1 IV* ... 298.6 250.8 47.8 47.3 37.7 9.6 II*..................... 243.2 82.1 48.7 33.4 161.1 Ill*.................... 247.0 83.2 49.6 33.6 163.8 1969—1*....... 303.0 254.4 48.6 48.3 38.4 9.9 IV*.................... 251.2 83.8 50.6 33.2 167.4 II*.... 309.2 259.3 49.9 49.4 39.3 10.1 III*.. . 314.1 262.7 51.4 50.6 40.1 10.5 1969—1*...................... 254.8 85.3 51.4 33.9 169.5 II*..................... 259.5 87.1 52.2 34.9 172.3 Ill*.................... 263.4 88.8 53.3 35.5 174.6 i Structures of five or more units. sta N nd o i t n e g .— ” t B a a b s l e e d ( s o e n c o d n a d t a p r f e ro ce m d i s n a g m p e a g so e) u . rce as for “Mortgage Debt Out­ inv 1 e I s n to c r l s u d u e n s d o er u t r s e t p a u n r d c i h n a g s e a m ag o r u e n e t m o e f n t V . A vendee accounts held by private 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 (Per 100 mortgages held or serviced) Mortgages Mortgages Period Prop­ Pro­ erty Loans not in foreclosure Total h N om ew es h is o E t m i x n ­ e g s jects i m pr i e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n ­ e g s End of period but delinquent for— L c o l f o a o s n r u e s r ­ i e n Total 30 days 60 days o 9 r 0 m da o y r s e 1945........... 665 257 217 20 171 192 1964........... 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1963.............. 3.30 2.32 .60 .38 .34 1965........... 8,689 1,705 5,760 591 634 2,652 876 1,774 1964.............. 3.21 2.35 .55 .31 .38 1966........... 7,320 1,729 4,366 583 641 2,600 980 1,618 1967........... 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1965.............. 3.29 2.40 .55 .34 .40 1968........... 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1966.............. 3.40 2.54 .54 .32 .36 1969........... 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1967.............. 3.47 2.66 .54 .27 .32 1968.............. 3.17 2.43 .51 .23 .26 1969—Feb.. 614 106 388 80 39 296 114 182 1969.............. 3.22 2.43 .52 .27 .27 Mar.. 642 110 381 100 50 329 122 207 Apr.. 681 113 428 82 57 301 111 191 1966—1......... 3.02 2.13 .55 .34 .38 May. 704 111 409 123 62 323 115 208 2.95 2.16 .49 .30 .38 June. 787 121 475 134 58 308 99 209 III.... 3.09 2.25 .52 .32 .36 July.. 869 140 518 127 85 356 122 234 IV.... 3.40 2.54 .54 .32 .36 Aug.. 791 130 501 92 68 385 126 259 Sept.. 872 148 566 95 63 364 134 230 3.04 2.17 .56 .31 .38 Oct... 911 160 553 140 59 397 148 249 II....... 2.85 2.14 .45 .26 .34 Nov.. 705 131 430 90 55 328 125 203 III.... 3.15 2.36 .52 .27 .31 Dec.. 793 148 448 146 50 317 134 183 IV___ 3.47 2.66 .54 .27 .32 1970—Jan... 807 178 433 139 58 313 139 174 1968—1......... 2.84 2.11 .49 .24 .32 Feb.. 643 141 361 109 32 235 107 128 II....... 2.89 2.23 .44 .22 .28 III.... 2.93 2.23 .48 .22 .26 IV___ 3.17 2.43 .51 .23 .26 1 Monthly figures do not reflect mortgage amendments included in annual totals. 1969—1......... 2.77 2.04 .49 .24 .26 2 Not ordinarily secured by mortgages. II....... 2.68 2.06 .41 .21 .25 3 Includes a small amount of alteration and repair loans, not shown separ­ Ill.... 2.91 2.18 .47 .26 .25 ately; only such loans in amounts of more than $1,000 need be secured. IV___ 3.22 2.43 .52 .27 .27 Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, Note.—Mortgage Bankers Association of America data from gross amounts of loans closed. Figures do not take into account principal reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ repayments on previously insured or guaranteed loans. For VA-guaranteed ventional mortgages held by more than 400 respondents, including loans, amounts by type are derived from data on number and average mortgage bankers (chiefly), commercial banks, savings banks, and amount of loans closed. savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 Total F su H in re A ­ d - a g V n u t A e a e r - ­ d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Total F su H in re A ­ d - a g V n u t A e a e r - ­ d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ 196 6 2,667 2,062 604 620 371 491 196 6 4,396 3,345 1,051 2,081 1,920 214 196 7 3,348 2,756 592 860 1,045 1.171 196 7 5,522 4,048 1,474 1,400 12 1,736 501 196 8 4,220 3,569 651 1,089 867 1,266 196 8 7,167 5,121 2,046 1,944 2,697 1,287 196 9 4.820 4.220 600 827 615 1.130 196 9 10.950 7.680 3.270 4,121 6,630 3.539 1969-Mar.. 4,328 3,687 641 44 48 1.311 1969-Mar.. 7,689 5,467 2,222 205 372 1,621 Apr.. 4,357 3,721 636 50 49 1.312 Apr.. 7,851 5,576 2,276 192 460 1,887 May. 4,395 3,764 631 61 71 1.321 May. 7,998 5,678 2,320 176 532 2,237 June. 4,442 3,816 626 70 71 1.322 June. 8,175 5,802 2,373 209 561 2,578 July.. 4,493 3,871 622 68 55 1,304 July.. 8,417 5,975 2,442 269 785 3,088 Aug.. 4,552 3,935 617 77 33 1,266 Aug.. 8,887 6.304 2,583 497 599 3,181 Sept.. 4,614 4,001 613 80 41 1,237 Sept.. 9,326 6,602 2,724 468 703 3,402 Oct... 4,680 4,072 608 84 51 1,212 Oct... 9,850 6,950 2,900 554 813 3,594 Nov.. 4,739 4,135 604 77 39 1.171 Nov.. 10,386 7.305 3,081 564 460 3,465 Dec.. 4.820 4.220 600 99 54 1.130 Dec.. 10.950 7.680 3.270 593 683 3.539 1970-Jan... 4,862 4,266 596 59 34 1,098 1970-Jan... 11,513 8,062 3,452 592 836 3,694 Feb.. 4,903 4,311 592 58 24 1,057 Feb.. 12,005 8,392 3,613 522 816 3,933 Mar.. 4,938 4,350 588 53 95 1,014 Mar.. 12,499 8,739 3,760 526 696 4,108 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 portfolios of former FNMA and include mortgages subject to participation commitments made during the period include some multifamily and non­ pool of Government Mortgage Liquidation Trust, but exclude conven­ profit hospital loan commitments in addition to 1-4 family loan com­ tional 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 Com­ munity Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (Per cent) Primary market Se m co ar n k d e a t ry Mortgage amounts co Im m p m li i c tm it e y n ie t l p d e , r b io y d (in months) FHA series FHLBB series Yield Date Accepted Period (effective rate) on FHA- of insured auction New Existing h N om ew es ho ne m w e s Offered Total pe B r y io c d o ( m in m m itm on e t n h t s ) 3 6 12-18 homes homes 3 6 12-18 1966..................... 6.25 6.41 6.40 6.38 1967...................... 6.46 6.52 6.53 6.55 In millions of dollars In per cent 1968..................... 6.97 7.03 7.12 7.21 1969..................... 7.81 7.82 7.99 8.26 1969—Apr............ 7.62 7.60 7.75 8.06 1970—Jan. 5.. 704.7 122.7 8.4 70.4 43.9 9.19 9.19 9.15 May........... 7.65 7.68 7.75 8.06 12.. 637.8 150.7 8.7 81.8 60.2 9.40 9.36 9.40 June........... 7.76 7.79 8.00 8.35 26.. 581.4 297.8 37.7 187.3 72.8 9.37 9.29 9.26 July........... 7.91 7.94 8.10 8.36 Aug............ 8.00 8.05 8.20 8.36 Feb. 9.. 497.0 295.3 41.2 188.0 66.1 9.23 9.28 9.15 Sept........... 8.05 8.08 8.25 8.40 24.. 438.1 279.9 52.7 150.4 76.8 9.20 9.25 9.13 Oct............ 8.13 8.13 8.30 8.48 Nov........... 8.13 8.15 8.35 8.48 Mar. 9.. 354.6 276.4 60.7 136.5 79.2 9.16 9.19 9.13 Dec............ 8.25 8.24 8.35 8.62 23.. 395.4 239.0 47.6 124.5 67.0 9.12 9.14 9.12 1970—jan............. 8.34 8.29 8.55 Apr. 6.. 268.4 190.2 41.0 121.4 27.8 9.05 9.07 9.10 Feb............ 8.41 8.41 8.55 9.29 20.. 315.7 185.2 54.0 98.2 33.0 9.02 9.04 9.10 Mar........... *8.51 *8.48 8.55 9.20 Apr............ 8.55 9.10 May 4. . 443.3 195.5 43.5 121.1 38.9 9.01 9.04 9.10 11 (100.0) Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices Note.—Implicit secondary market yields are gross—before deduction of 50on prevailing local conditions as of the first of the succeeding basis-point fee paid for mortgage servicing. They reflect the average accepted bid month. Yields on FHA-insured mortgages are derived from price for Govt.-underwritten mortgages after adjustment by Federal Reserve weighted averages of private secondary market prices for Sec. to allow for FNMA commitment fees and FNMA stock purchase and holding 203, 30-year mortgages with minimum downpayment and an requirements, assuming a prepayment period of 15 years for 30-year loans. Com­ assumed prepayment at the end of 15 years. Gaps in the data mitments for 12-18 months are for new homes only. are due to periods of adjustment to changes in maximum per­ Total accepted shown in parenthesis for most recent period indicates FNMA missible contract interest rates. The FHA series on average announced limit before the “auction” date. contract interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional 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 a MAY 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 p n o a s t o p h u d e e m s r r er e a r n l R n o d i e a z p n m a s a t o i i o r i d n ­ Pe lo rs a o n n s al Total p S a l i y o n m a g n l e s e n ­ t a C cc h o a u rg n e ts S c e r r e v d ic it e 1939. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 . 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950. 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955. 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960. 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 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 1969. 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 1969--Mar............................ 111,950 89,672 34,262 24,306 3,874 27,230 22,278 9,139 6,340 6,799 Apr............................ 113,231 90,663 34,733 24,399 3,903 27,628 22,568 9,216 6,557 6,795 May........................... 114,750 91,813 35,230 24,636 3,964 27,983 22,937 9,218 6,971 6,748 June........................... 115,995 93,087 35,804 24,956 4,022 28,305 22,908 9,227 7,002 6,679 July............................ 116,597 93,833 36,081 25,172 4,039 28,541 22,764 9,120 7,039 6,605 Aug............................ 117,380 94,732 36,245 25,467 4,063 28,957 22,648 9,073 6,988 6,587 Sept............................ 118,008 95,356 36,321 25,732 4,096 29,207 22,652 9,075 7,005 6,572 118,515 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 Dec............................ 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 1970—Jan............................. 121,074 97,402 36,291 27,346 3,991 29,774 23,672 9,092 7,539 7,041 Feb............................. 120,077 96,892 36,119 26,987 3,970 29,816 23,185 9,074 6,789 7,322 Mar............................ 119,698 96,662 36,088 26,814 3,951 29,809 23,036 9,054 6,645 7,337 1 Holdings of financial institutions; holdings of retail outlets are in- loans. For back figures and description of the data, see “Consumer Credit,” eluded in “other consumer goods paper.” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- anc* ^ec< 1968 Bulletin, pp. 983-1003. hold, family, and other personal expenditures, except real estate mortgage INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Total m b C e a o r n c m k ia s ­ l fi S n c a o a l n s e . c s e u C n r i e o d n i s t fi s n C u a m o n n c e ­ r e1 Other1 Total d m A ea o u l b e t i o r l s ­ e 2 o O r u e t t t h l a e e i t l r 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 1950...................................... 14,703 11,805 5,798 3,711 590 1,286 420 2,898 287 2,611 1955...................................... 28,906 24,398 10,601 8,447 1,678 2,623 1,049 4,508 487 4,021 1960...................................... 42,968 36,673 16,672 10,763 3,923 3,781 1,534 6,295 359 5,936 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 1969...................................... 98,169 84,982 40,305 19,798 11,594 9,740 3,545 13,187 336 12,851 1969—Mar............................ 89,672 78,006 37,257 18,253 10,294 8,927 3,275 11,666 320 11,346 Apr............................ 90,663 79,062 37,854 18,418 10,508 9,008 3,274 11,601 325 11,276 May........................... 91,813 80,155 38,347 18,636 10,699 9,080 3,393 11,658 329 11,329 June........................... 93,087 81,388 38,916 18,961 10,939 9,146 3,426 11,699 333 11,366 July............................ 93,833 82,130 39,248 19,127 11,054 9,293 3,408 11,703 335 11,368 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 Dec............................ 98,169 84,982 40,305 19,798 11,594 9,740 3,545 13,187 336 12,851 1970—Jan............................. 97,402 84,531 40,144 19,703 11,468 9,683 3,533 12,871 333 12,538 Feb............................. 96,892 84,393 39,990 19,652 11,459 9,691 3,601 12,499 331 12,168 Mar............................ 96,662 84,308 39,956 19,586 11,533 9,650 3,583 12,354 331 12,023 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

MAY 1970 □ CONSUMER CREDIT A 55 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY SALES FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair paper Other and Per­ Other Repair con­ mod­ sonal Auto­ con­ and Per­ End of period Total sumer erniza­ loans End of period Total mobile sumer modern­ sonal ch P a u s r e ­ d Direct g p o a o p d e s r l t o i a o n n s paper g p o a o p d e s r iz lo a a ti n o s n loans 1939....................... 1,079 237 178 166 135 363 1,197 878 115 148 56 1941....................... 1,726 447 338 309 161 471 1,797 1,363 167 201 66 1945....................... 745 66 143 114 110 312 300 164 24 58 54 1950....................... 5,798 1,177 1,294 1,456 834 1,037 1950............................. 3,711 2,956 532 61 162 1955....................... 10,601 3,243 2,062 2,042 1,338 1,916 1955............................. 8,447 6,905 1,048 28 466 1960....................... 16,672 5,316 2,820 2,759 2,200 3,577 1960............................. 10,763 7,488 2,059 146 1,070 1964....................... 25,094 8,691 4,734 3,670 2,457 5,542 1964............................. 13,605 8,285 3,022 207 2,091 1965....................... 28,962 10,209 5,659 4,166 2,571 6,357 15,279 9,068 3,556 185 2,470 1966....................... 31,319 11,024 5,956 4,681 2,647 7,011 16,697 9,572 4,256 151 2,718 1967....................... 32,700 10,927 6,267 5,126 2,629 7,751 16,838 9,252 4,518 114 2,954 1968....................... 36,952 12,213 7,105 6,060 2,719 8,855 1968............................. 18,219 9,986 4,849 74 3,310 1969....................... 40,305 12,784 7,620 7,415 2,751 9,735 1969............................. 19,798 10,743 5,306 65 3,684 1969—Mar............. 37,257 12,224 7,168 6,188 2,670 9,007 1969—Mar.................... 18,253 9,988 4,868 70 3,327 Apr.............. 37,854 12,388 7,273 6,299 2,690 9,204 18,418 10,095 4,896 70 3,357 May............ 38,347 12,541 7,367 6,406 2,721 9,312 May.................. 18,636 10,246 4,945 69 3,376 June............ 38,916 12,727 7,457 6,557 2,763 9,412 June.................. 18,961 10,440 5,039 70 3,412 July............. 39,248 12,814 7,501 6,709 2,780 9,444 July.................... 19,127 10,538 5,088 70 3,431 Aug............. 39,532 12,859 7,513 6,818 2,787 9,555 Aug.................... 19,265 10,570 5,139 69 3,487 Sept............. 39,793 12,864 7,543 6,929 2,808 9,649 Sept................... 19,360 10,557 5,191 69 3,543 Oct.............. 40,006 12,914 7,597 7,023 2,798 9,674 19,569 10,693 5,227 67 3,582 40,047 12,883 7,618 7,100 2,779 9,667 Nov................... 19,668 10,727 5,247 66 3,628 Dec.............. 40,305 12,784 7,620 7,415 2,751 9,735 19,798 10,743 5,306 65 3,684 1970—Jan.............. 40,144 12,664 7,569 7,472 2,714 9,725 1970—Jan..................... 19,703 10,660 5,310 65 3,668 Feb.............. 39,990 12,585 7,533 7,474 2,691 9,707 Feb.................... 19,652 10,604 5,324 64 3,660 Mar............. 39,956 12,552 7,538 7,476 2,678 9,712 Mar................... 19,586 10,575 5,297 64 3,650 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 cards1 1939, 789 81 24 15 669 banks insti­ 1941 , 957 122 36 14 785 tutions 1945, 731 54 20 14 643 1950 2,296 360 200 121 1,615 1939.............. 2,719 625 162 1,414 518 1955 5,350 763 530 327 3,730 1941.............. 3,087 693 152 1,645 597 1960 9,238 1,675 791 802 5,970 1945.............. 3,203 674 72 1,612 845 1964. 15,199 2,895 1,176 913 10,215 1950.............. 6,768 1,576 245 3,291 76 1,580 1965, 17,292 3,368 1,367 972 11,585 1955.............. 9,924 2,635 367 4,579 216 2,127 1966. 18,708 3,727 1,503 1,020 12,458 1960.............. 13,173 3,884 623 4,893 436 3.337 1967, 19,952 3,993 1,600 1,046 13,313 1968, 22,286 4,506 1,877 1,132 14,771 196 4 17,576 5,950 924 5,587 608 4,507 1969, 24,879 5,119 2,037 1,224 16,499 196 5 18,990 6,690 981 5,724 706 4,889 196 6 20,004 6.946 1,026 5,812 874 5,346 1969-—Mar................... 22,496 4,562 1,904 1,134 14,896 196 7 21,206 7,340 1,088 5,939 1,029 5,810 Apr.................... 22,790 4,652 1,928 1,143 15,067 196 8 23,301 7,975 1,163 6,450 1,305 6,408 May.................. 23,172 4,747 1,956 1,174 15,295 196 9 24.300 7.900 1.196 6.650 1.584 6.970 June.................. 23,511 4,847 1,994 1,189 15,481 July.................... 23,755 4,893 2,007 1,189 15,666 1969—Mar.... 22,278 7,961 1,178 5,037 1,303 6,799 Aug.................... 24,113 4,967 2,024 1,207 15,915 Apr__ 22,568 8,040 1,176 5,237 1,320 6,795 Sept................... 24,287 5,021 2,032 1,219 16,015 May... 22,937 8,017 1,201 5,609 1,362 6,748 Oct..................... 24,374 5,057 2,042 1,219 16,056 June... 22,908 8,031 1.196 5,574 1,428 6,679 Nov.................... 24,586 5,085 2,036 1,231 16,234 July... 22,764 7.946 1,174 5,541 1,498 6,605 Dec.................... 24,879 5,119 2,037 1,224 16,499 Aug.... 22,648 7,879 1,194 5,438 1,550 6,587 Sept.. . 22,652 7,882 1,193 5,448 1,557 6,572 1970—Jan..................... 24,684 5,065 2,026 1,212 16,381 Oct.. .. 22,665 7,837 1,188 5,568 1,517 6,555 Feb.................... 24,751 5,066 2,021 1,215 16,449 Nov__ 22,900 7,795 1.205 5,685 1,553 6,662 Mar................... 24,766 5,092 2,018 1,209 16,447 Dec__ 24.300 7.900 1.196 6.650 1.584 6.970 1970—Jan.. .. 23,672 7,887 1.205 5,932 1,607 7,041 Note.—Institutions represented are consumer finance companies, credit Feb.... 23,185 7,857 1,217 5,210 1,579 7,322 unions, industrial loan companies, mutual savings banks, savings and Mar.... 23,036 7,843 1,211 5,062 1,583 7.337 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 homeheating-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 □ MAY 1970 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 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 1969. 102,888 32,354 33,079 2,278 35,177 1969—Mar.. 381 8,132 2,730 2,750 2,625 2,423 198 179 2,828 2,780 Apr.. 720 9,024 2,772 3,023 2,763 2,668 219 216 2,966 3,117 May. 680 8,960 2,757 2,985 2,767 2,760 209 246 2,947 2,969 June. 705 9,169 2,725 3,045 2,869 2,832 218 245 2,893 3,047 July. 521 8,920 2,582 2,828 2,777 2,778 185 214 2,977 3,100 Aug.. 680 8,604 2,634 2,593 2,819 2,764 177 206 3,050 3,041 Sept.. 669 8,485 2,794 2,566 2,740 2,794 180 194 2,955 2,931 Oct.. 661 8,797 2,808 2,939 2,707 2,805 175 183 2,971 2,870 Nov.. 632 8,173 2,683 2,433 2,841 2,817 164 160 2,944 2,763 Dec.. 344 10,096 2,472 2,479 2,838 4,004 169 149 2,865 3,464 1970—Jan.. 521 7,490 2,479 2,130 2,925 2,663 160 118 2,957 2,579 Feb.. 625 7,106 2,536 2,214 3,018 2,275 179 137 2,892 2,480 Mar.. 392 8,243 2,496 2,584 2,922 2,725 165 152 2,809 2,782 Repayments 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 1969. 94,609 29,882 30,369 2,163 32,195 1969—Mar.. 7,735 7,840 2.501 2,541 2,461 2,521 180 180 2,593 2,598 Apr.. 7,960 8,033 2,519 2,552 2,569 2,575 185 187 2,687 2,719 May. 7,834 7,810 2,488 2,488 2,507 2,523 183 185 2,656 2,614 June. 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 Sept.. 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 Dec.. 7,929 8,405 2.499 2,527 2,552 2,618 185 185 2,693 3,075 1970—Jan.. 8,141 8,257 2,469 2,441 2,722 2,926 168 167 2,782 2,723 Feb.. 8,207 7,616 2,550 2,386 2,761 2,634 171 158 2.725 2,438 Mar.. 8,194 8,473 2.501 2,615 2,792 2,898 169 171 2,732 2,789 Net change in credit outstanding 2 1964. 7,200 2,677 2,155 139 2,229 1965. 8,629 3,684 2,232 150 2*563 1966. 6,215 1,937 2,413 90 1 *775 1967. 3,387 168 1,417 —29 1 *831 1968. 8,964 3,406 2,504 136 2*918 1969. 8,279 2,472 2,710 115 2*982 —Mar............................ 646 292 229 209 164 -98 18 -1 235 182 Apr............................ 760 991 253 471 194 93 34 29 279 398 May........................... 846 1,150 269 497 260 237 26 61 291 355 June........................... 795 1,274 265 574 267 320 35 58 228 322 July............................ 622 746 111 277 266 216 -6 17 251 236 Aug............................ 600 899 72 164 245 295 -8 24 291 416 Sept............................ 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 Dec............................ 415 1,691 -27 -48 286 1,386 -16 -36 172 389 >—Jan............................. 380 -767 10 -311 203 -263 -8 -49 175 -144 Feb............................. 418 -510 -14 -172 257 -359 8 -21 167 42 Mar............................ 198 -230 -5 -31 130 -173 -4 -19 77 -7 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

MAY 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 o n n c s ial Retail outlets Period S.A.1 N.S.A. S.A.i N.S.A. S.A.1 N.S.A. S.A.i N.S.A. S.A.1 N.S.A. Extensions 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 1969. 102,888 38,533 17,141 27,958 19,256 1969—Mar.. 8 381 8,132 3,199 3,155 1,429 1,359 2,239 2.219 514 1,399 Apr.. 8720 9,024 3,318 3,585 1,405 1,463 2,378 2,447 619 1,529 May. 8680 8,960 3,236 3,436 1,451 1,478 2,365 2,428 628 1,618 June. 8705 9,169 3,272 3,540 1,436 1,566 2,323 2,479 674 1,584 July. 8521 8,920 3,041 3,323 1.400 1,507 2,439 2,539 641 1,551 Aug.. 8680 8,604 3,148 3,162 1,431 1,401 2,470 2,463 631 1,578 Sept.. 8 669 8,485 3,292 3,203 1,440 1,396 2,332 2,280 605 1,606 Oct.. 8661 8,797 3,298 3,346 1,518 1,603 2,341 2,267 504 1,581 Nov.. 8632 8,173 3,213 2,845 1,490 1,381 2,291 2,217 638 1,730 Dec.. 8344 10,096 3,179 3,302 1,331 1,568 2,213 2,670 621 2,556 1970—Jan.. 8521 7,490 3,047 2,751 1.401 1,201 2,339 1,979 734 1,559 Feb.. 8625 7,106 3,167 2,735 1,386 1,172 2,322 1,991 750 1,208 Mar.. 8392 8,243 3,193 3,206 1,344 1,315 2,217 2.220 638 1,502 Repayments 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 1969. 94,609 35,180 15,562 25,365 18,502 1969—Mar.. 7,735 7,840 2,928 2,954 287 1,325 2,011 2,025 509 1,536 Apr.. 7,960 8,033 2,967 2,988 236 1,298 2,140 2,153 617 1,594 May. 7,834 7,810 2,917 2,943 278 1,260 2,091 2,046 548 1,561 June. 7,910 7,895 2,989 2,971 223 1,241 2,079 2,140 619 1,543 July., 7,899 8,174 2,859 2,991 330 1,341 2,181 2,295 529 1,547 Aug.. 8,080 7,705 2,958 2,878 386 1,263 2,228 2.105 508 1,459 Sept.. 7,971 7,861 2,919 2,942 355 1,301 2,133 2.106 564 1,512 Oct.. 7,992 8,303 2,986 3,133 324 1,394 2,148 2,180 534 1,596 Nov.. 8,012 7,545 3,020 2,804 346 1,282 2,117 2,005 529 1,454 Dec.. 7,929 8,405 2,977 3,044 309 1,438 2,094 2,377 549 1,546 1970—Jan.. 8,141 8,257 2,962 2,912 320 1,296 2,197 2,174 662 1,875 Feb.. 8,207 7,616 3,101 2,889 321 1,223 2,146 1,924 639 1,580 Mar.. 8,194 8,473 3,119 3,240 300 1,381 2,154 2,205 621 1,647 Net change in credit outstanding 2 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 1969. 8,279 3,353 1,579 2,593 754 1969—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 Dec.. 415 1,691 202 258 22 130 119 293 72 1,010 1970—Jan.. 380 -767 85 -161 81 -95 142 -195 72 -316 Feb.. 418 -510 66 -154 65 -51 176 67 111 -372 Mar.. 198 -230 74 -34 44 -66 63 15 17 -145 1 Includes adjustments for differences in trading days. tween extensions and repayments for some particular holders do 2 Net changes in credit outstanding are equal to extensions less not equal the changes in their outstanding credit. Such transfers do repayments, except in certain months when data for extensions and not affect total instalment credit extended, repaid, or outstanding. repayments have been adjusted to eliminate duplication resulting See also Note to previous table. from large transfers of paper. In those months the differences be­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: S.A. □ MAY 1970 MARKET GROUPINGS 195759 100 ( - = ) 1957-59 1969 1970 pro­ 1969 Grouping por­ aver­ tion age* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.r Feb.r Mar. Total index................................. 100.00 172.8 171.4 171.7 172.5 173.7 174.6 174.3 173.9 173.1 171.4 171.1 170.4 170.5 171.1 Final products, total........................ 47.35 170.8 170.8 170.2 170.0 170.7 172 172.7 172.2 170.9 168.4 168.5 168.5 170.0 170.6 Consumer goods......................... 32.31 162.5 162.8 161.8 160.7 161.5 164.4 164.2 162.8 161.2 160.5 160.7 161.5 162.0 163.7 Equipment, including defense... 15.04 188.6 187.8 188.4 190.0 190.4 190.8 190.3 192.4 191.9 185.6 185.2 183.6 186.2 185.6 Materials........................................ 52.65 174.6 172.1 172.9 174.5 176.3 176.5 175.9 176.0 175.4 174.6 173.9 172.5 171.3 171.8 Consumer goods Automotive products....................... 3.21 173.2 175.4 166.1 165. 178.7 184.6 179.5 176.6 172.8 168.0 160.9 155.3 154. 161.5 Autos............................................. 1.82 162.8 165.0 149.6 148.9 168.3 178.7 178.4 169.9 164.0 153.8 141.6 132.9 127.6 138.8 Auto parts and allied products.... 1.39 186.8 189.0 187.9 188.0 192.3 192.4 181.0 185.4 184.4 186.7 186.2 184.9 190.7 191.4 Home goods and apparel................ 10.00 159.3 162.8 161.5 161.9 159.7 160. 159.3 156.7 156.2 150.9 151.0 152.3 153.3 154.4 Home goods.................................. 4.59 184.0 186.3 186.1 185.9 186.1 184.4 184.5 181.2 179.5 166.7 166.8 169.6 174.7 178.8 Appliances, TV, and radios........ 1.81 180.2 182.9 182.0 182.0 180.2 181.8 181.9 176.5 175.2 142.2 140.1 149.0 168.4 176.0 Appliances.............................. 1.33 192.4 189.4 190.1 192.7 190.7 195.6 195.0 188.2 187.2 147.8 151.0 162.5 186.2 196.2 TV and home radios............... .47 145.6 164.4 158.9 151.9 150.6 143.0 144.9 143.6 141.3 126.2 109.6 111.0 118.2 119.1 Furniture and rugs..................... 1.26 180.3 182.0 183.3 183.4 184.0 180.0 179.7 177.9 175.7 176.0 175.0 173.8 169.2 170.9 Miscellaneous home goods......... 1.52 191.5 193.8 193.4 192.6 194.8 191.1 191.6 189.4 187.8 188.2 191.7 190.5 186.8 188.5 Apparel, knit goods, and shoes___ 5.41 138.5 142.9 140.6 141.5 137.4 140.9 138.0 135.9 136.4 137.5 137.7 137.6 135.1 Consumer staples............................ 19.10 162.4 160.8 161.2 159.2 159.6 162.9 164.1 163.7 161.8 164.2 165.7 167.3 167. 168.9 Processed foods............................. 8.43 136.6 136.4 137.1 136.4 136.1 135.3 138.8 137.9 132.3 136.5 137.0 138.7 139.5 140.1 Beverages and tobacco................... 2.43 146.8 150.9 143.7 137.9 140.4 147.8 152.3 152.6 148.9 145.0 149.6 151.7 154.6 Drugs, soap, and toiletries............. 2.97 209.0 205.0 209.9 208.0 206.1 211.9 207.2 208.6 210.4 213.2 217.0 217.6 220.1 223.3 Newspapers, magazines, and books 1.47 147.1 143.3 145.9 147.3 146.3 147.5 147.6 149.8 147.1 148.9 149.7 147.7 147.6 146.1 Consumer fuel and lighting........... 3.67 199.6 193.6 194.1 189.8 192.7 201.6 201.1 198.6 203.9 206.0 206.0 210.0 206.6 Fuel oil and gasoline.................. 1.20 144.6 141.6 142.4 143.9 146.8 146.1 144.4 146.1 150.9 152.7 148.4 150 145.9 150.0 Residential utilities..................... 2.46 226.3 218.9 219.3 212.2 215.1 228.7 228.7 224.2 229.8 232.0 234.1 239.1 236.3 Electricity............................... 1.72 249.7 240.6 240.6 230.0 233.7 252.6 252.2 245.3 252.9 255.6 258.2 264.7 260.0 Gas......................................... .74 Equipment Business equipment......................... 11.63 195.6 192.9 194.1 195.7 197.0 196.9 197.0 200.4 200.9 194.4 193. 192. 196.8 197.0 Industrial equipment...................... 6.85 179.1 176.7 178.6 180.9 182.7 181.2 180.3 183.9 182.9 174.4 176.3 175.0 184.9 185.5 Commercial equipment.................. 2.42 220.0 217.3 220.1 221.7 221.0 220.5 221.3 222.9 224.9 223.3 223.6 223.0 222.4 225.0 Freight and passenger equipment.. 1.76 246.7 242.3 239.7 238.4 240.8 250.5 249.7 251.9 254.5 252.8 240.9 239.5 231.5 225.6 Farm equipment............................. .61 136.8 135.6 133.9 134.9 135.2 124.4 136.0 146.8 153.1 136.5 135.4 138.4 129.5 Defense equipment.......................... 3.41 Materials Durable goods materials.................. 26.73 165.5 164.0 165.8 165.5 167.0 167.0 167.3 166.6 165.8 163.5 161. 160.1 157.9 159.8 Consumer durable......................... 3.43 163.9 163.2 157.9 156.6 162.7 163.0 169.5 171.7 166.4 158.5 150.9 148.7 142.3 144.6 Equipment..................................... 7.84 191.9 190.7 190.3 191.7 193.2 193.2 195.1 197.2 194.8 190.7 189.8 188.6 188.6 189.9 Construction.................................. 9.17 152.4 154.5 153.2 153.0 151.7 150.0 149.9 149.8 149.6 150.2 150.4 151.2 150.3 149.2 Metal materials n.e.c...................... 6.29 152.8 153.3 151.5 148.4 153.6 156.2 153.5 149.3 153.3 156.1 155.4 149.4 150.6 154.1 Nondurable materials...................... 25.92 183.9 180.3 180.3 183.7 185.9 186.4 184.7 185.5 185.3 186.0 186.5 185.3 185.0 184.3 Business supplies............................ 9.11 166.6 165.3 162.3 165.9 166.3 167.1 167.4 167.0 167.4 166.9 168.5 167.5 165.1 162.7 Containers................................ 3.03 168.6 170.4 165.0 168.2 167.5 165.5 166.7 167.8 169.9 165.6 174.0 173.7 169.1 164.2 General business supplies........... 6.07 165.5 162.7 160.9 164.7 165.7 167.9 167.8 166.6 166.1 167.6 165.8 164.4 163.1 162.0 Nondurable materials n.e.c............ 7.40 237.8 232.7 232.3 236.6 239.4 241.6 238.2 240.2 239.0 242.0 240.0 239.5 238.7 237.0 Business fuel and power................ 9.41 158.2 153.7 156.9 159.3 162.8 161.6 159.4 159.8 160.4 160.4 161.7 159.8 162.1 163.6 Mineral fuels.............................. 6.07 134.9 130.2 134.2 137.4 141.8 139.7 136.5 137.7 135.7 136.5 137.7 135.3 137.2 138.4 Nonresidential utilities............... 2.86 216.7 211.7 213.7 214.9 216.1 216.7 217.3 221.1 222.8 220.9 222.5 222.4 225.0 Electricity............................... 2.32 220.6 214.7 216.7 218.1 220.0 220.5 221.1 225.8 227.8 225.4 227.3 227.1 230.2 General industrial............... 1.03 216.1 208.3 212.4 213.4 216.4 216.7 219.2 221.4 224.7 218.4 221.1 216.5 218.1 Commercial and other......... 1.21 236.1 231.2 231.7 233.4 234.7 235.6 234.7 241.7 242.7 243.4 244.8 248.5 253.1 Gas......................................... .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 181.8 177.9 177.6 183.0 184.5 182.4 179.3 176.8 167.2 164.4 163.7 166.5 171.7 Apparel and staples............... 24.51 157.1 156.8 156.6 155.3 154.7 158.1 158.4 157.6 156.2 158.3 159.5 160.8 161.1 61 For Note see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 n INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS 1957-59 100 ( = ) Grouping 19 p p 5 r o 7 o r - ­ ­ 59 a 1 v 9 e 6 r 9 ­ 1969 1907 tion age* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.1 Mar.1 Total index. 100.00 172.8 171.4 171.7 172.5 173.7 174.6 174.3 173.9 173.1 171.4 171.1 170.4 170.5 171.1 Manufacturing, total., 86.45 173. 173.1 173.0 173.8 174. 175.6 175.4 175.2 173.9 171.8 171.3 170.2 170.3 170.7 Durable................ 48.07 176.5 175.9 175.7 176.7 178.3 178.7 178.8 178.7 177.3 172.1 171.1 169.7 169.5 170.4 Nondurable........... 38.38 170.6 169.5 169.6 170.3 170.5 171.8 171.3 170.9 169.5 171.5 171.5 171.0 171.3 171.4 Mining. 8.23 130.2 126.7 128.8 130.3 134.4 133.2 131.2 131.6 130.2 132.6 134.4 131.7 134.3 136.1 Utilities. 5.32 221.2 215.1 216.3 213.6 215.6 222.2 222.6 222.5 226.0 226.0 227.9 230.1 230.2 230.0 Durable manufactures Primary and fabricated metals........ 12.32 162.5 160.3 161.2 162.3 165.1 164.1 164.1 162.3 163.1 162.9 161.1 159.2 156.7 158.5 Primary metals............................... 6.95 149.1 146.2 147.9 149.3 153.1 152.4 151.3 149.3 150.4 150 147.7 143.1 139.5 143.3 Iron and steel............................. 5.45 140.3 139.0 141.2 141.6 145.6 145 141.1 141.4 141.5 142.7 138.8 135 130.3 136.2 Nonferrous metals and products. 1.50 181.1 186.9 186.2 184.3 190.8 181.8 177.9 178.6 178.7 183.1 181.1 174.8 177.2 183.5 Fabricated metal products............. 5.37 179.8 178.5 178.3 179.2 180.6 179.1 180.6 179.1 179.4 179.2 178.4 180.0 178.9 178.2 Structural metal parts................ 2.86 173.3 175.8 174.4 173.1 173 170.8 171.5 171.5 172.5 174.5 177.1 175.4 174.6 174.4 Machinery and related products... 27.98 188. 187.9 187.4 188.4 190.3 192.3 192.0 192.7 190.0 181.1 180.3 178. 179.9 181.1 Machinery.................................... 14.80 195.7 194.7 194.6 196.9 197.2 198.1 199.4 201.2 199.0 187.4 188.7 189.7 195.7 197.1 Nonelectrical machinery........... 8.43 194.6 190.2 190.8 193.1 195.3 196.0 195.5 199.8 200.3 194.9 196.5 195.9 195.6 196.4 Electrical machinery................. 6.37 197.2 200.7 199.5 201.8 199.6 200.8 204.5 202.9 197.3 177.5 178.3 181.5 195.8 198.0 Transportation equipment........... 10.19 174.6 174.1 172.4 171.8 176.6 181.1 179.1 178.8 175.7 168.3 163.9 159.6 154.2 156.0 Motor vehicles and parts.......... 4.68 166.9 167.6 160.8 156.8 169.1 174.2 174.1 170.5 167.9 159.9 152.0 146.8 142.0 148.9 Aircraft and other equipment. . 5.26 177.8 176.0 178.7 180.8 179.5 183.4 180.3 182.6 179.6 171.9 170.7 166.7 161.4 159.1 Instruments and related products. 1.71 194.4 192. 195.4 195.3 195.7 194 194.9 195.4 193.9 196.0 197.4 194.8 194.0 193.6 Ordnance and accessories............. 1.28 Clay, glass, and lumber............. 4.72 142.5 145.1 143.2 143.6 140.6 138.3 140.2 140.6 140.7 140.6 139.9 141.1 140.2 137.7 Clay, glass, and stone products. 2.99 156.0 153.4 155.1 156.9 155.2 152.7 155.3 157.7 156.3 155.9 157.4 154.5 155.0 151.4 Lumber and products............... 1.73 119.1 130. 122.6 120.7 115.5 113.4 114.1 111.0 113.8 114.1 109.7 118.0 114.6 Furniture and miscellaneous.. 3.05 176 176.5 178.4 179.0 179.1 176.3 176.2 175.4 174.7 175.1 175.3 175.9 174.0 174.2 Furniture and fixtures.......... 1.54 186.9 187.0 188.9 190.2 189.9 185.0 186.5 185.3 184.0 183.7 183.3 183.4 179.4 180.4 Miscellaneous manufactures. 1.51 166.4 165.7 167.6 167.5 168.1 167.4 165.8 165.3 165.3 166.4 167.2 168.2 168.4 167.8 Nondurable manufactures Textiles, apparel, and leather. 7.60 144.2 144.7 143.7 146.3 146.0 145.4 143.3 141.1 142.0 142.9 141.5 141.3 139.2 137.5 Textile mill products............. 2.90 154.2 152.9 154.2 156.5 157.8 157.0 153.0 151.6 152.1 151.9 150.3 152.9 152.8 150.2 Apparel products.................. 3.59 149.2 150.2 147.8 150.0 149.2 150.7 148.8 146.1 146.5 148.0 147.9 145.8 141.4 Leather and products........... 1.11 101.9 105.6 103.4 107.6 104.7 98.4 100.0 97.7 101.1 102.7 98.0 96.9 96.9 Paper and printing......... 8.17 164.4 162.2 162.4 163. 164.4 165.9 166.3 165. 165.3 166.1 166. 164.6 164.6 163.5 Paper and products....... 3.43 175.6 175.0 175.8 174.9 175.3 176.4 177.5 177.5 177.1 175.9 178.0 173.8 174.9 172.6 Printing and publishing., 4.74 156.3 153.0 152.7 155.9 156.5 158.3 158.2 157.3 156.9 159.1 158.6 157.9 157.3 156.9 Newspapers................ 1.53 142.7 141.4 137.5 142.8 141.3 145.6 144.4 143.3 143.0 154.1 142.0 141.7 142.1 137.9 Chemicals, petroleum, and rubber. 11.54 222.6 219.6 221.7 222.7 223.2 225.2 222.4 223.3 222.7 225.3 224. 222.1 224.6 225.8 Chemicals and products.............. 7.58 239.0 235.2 239.1 239.5 239.7 243.1 238.1 240.2 238.3 240.8 241.7 240.2 243.1 244.4 Industrial chemicals.................. 3.84 283.0 277.7 283.3 285.2 286.1 288.6 281.5 286.2 281.2 283.9 283.8 281.9 283.6 Petroleum products...................... 1.97 143.8 142.7 142.2 143.5 145.4 143.5 144.5 146.2 146.7 150.9 149.5 143.3 143.9 i49.’i Rubber and plastics products....... 1.99 238.7 236.2 234.2 237.0 237.3 238.3 239.9 240.0 238.6 240.2 234.8 231.4 234.2 Foods, beverages, and tobacco. 11.07 139.0 139.8 138.2 136.9 137.0 138.4 141.0 140.4 136.2 139.2 140.1 142.7 143.5 144.3 Foods and beverages.............. 10.25 140.7 141.5 140.5 138.6 138.3 139.9 143.1 142.2 138.0 141.0 142.1 144.7 145.2 146.0 Food manufactures............. 8.64 136.7 136.7 136.7 136.6 136.1 135. 137.8 137.0 132.6 137.5 137.4 140.2 140.4 140.6 Beverages............................. 1.61 161.9 167.2 160.6 149.4 149.8 161.7 171.3 169.9 166.7 159.7 167.2 168.9 170.7 Tobacco products................... .82 117.3 118.7 110.5 115.4 121.9 120.3 114.8 118.6 113.8 116.2 115.1 117.8 122.8 Mining Coal, oil, and gas............. 6.80 127.4 121.9 125.7 128.7 133.1 131.7 128.8 129.9 128.1 129.1 130.3 128.3 130.3 132.1 Coal................................. 1.16 117.7 114.3 120.2 123.9 124.8 130.0 122.1 114.7 115.7 118.9 119.3 113.1 122.3 121.5 Crude oil and natural gas. 5.64 129.3 123.5 126.9 129.6 134.8 132.1 130.2 133.1 130.7 131.2 132.6 131.4 132.0 134.3 Oil and gas extraction.. 4.91 139.0 134.0 137.5 140.5 145.8 142.0 139.9 143.1 140.4 140.6 142.0 140.5 140.7 142.4 Crude oil.................. 4.25 132.0 127.0 130.2 133.1 139.2 135.5 132.4 135.6 132.8 133.5 135.0 133.7 133.4 134.9 Gas and gas liquids.. .66 184.0 Oil and gas drilling....... .73 64.2 Metal, stone, and earth minerals. 1.43 143.5 149.9 143.6 138.3 140.4 140.5 142.6 139.5 140.2 149.6 153.7 148.2 153.5 156.7 Metal mining............................. .61 142.0 149.1 146.6 134.5 137.4 138.1 142.3 133.1 141.1 153.3 152.3 155.7 158.4 165.5 Stone and earth minerals........... .82 144.7 150.5 141.4 141.2 142.6 142.2 142.8 144.3 139.6 146.8 154.8 142.6 149.8 150.1 Utilities Electric. 4.04 233.0 225.7 226.9 223.1 225.9 234.2 234.4 234.1 238.5 238.3 240.5 243.1 242.9 Gas....... 1.28 174.1 61 For Note see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. □ MAY 1970 MARKET GROUPINGS 195759 100 ( - = ) 1957-59 1969 1970 pro­ 1969 Grouping por­ aver­ tion age* Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Total index. 100.00 172.8 173.1 171.9 172.4 176.7 167.7 174.6 179.2 177.8 173.6 169.6 168.2 171.2 172.8 Final products, total........................ 47.35 170.8 171.9 168.6 168.4 174.0 166.4 173.4 179.2 176.5 170.0 166.2 167.1 170.4 171.7 Consumer goods......................... 32.31 162.5 163.9 159.0 158.2 165.5 156.5 166.3 172.6 169.4 162.6 156.6 159.0 162.9 164.3 Equipment, including defense. . . 15.04 188.6 189.0 189.1 190.4 192.4 187.7 188.5 193.4 191.8 186.0 187.0 184.3 186.4 187.5 Materials........................................ 52.65 174.6 174.3 174.8 176.1 179.2 168.8 175.6 179.2 178.9 176.9 172.6 169.5 172.2 174.5 Consumer goods Automotive products.................. 3.21 173.2 186.0 174.7 173.1 191.1 132.5 133.2 181.8 189. 179.0 167.8 163.3 161.6 168.6 Autos........................................ 1.82 162.8 184.8 164.6 165.3 191.0 94.7 91.9 175.0 188.6 172.3 155.8 146.2 140.4 152.7 Auto parts and allied products. 1.39 186.8 187.5 187.9 183.5 191.1 182.1 187.6 190.6 191.3 187.8 183.6 185.9 189.4 189.5 Home goods and apparel........... 10.00 159.3 168.9 161.9 162.3 165.4 147.9 159.2 162.0 166.0 156.6 143.4 147.4 158.2 160.8 Home goods............................. 4.59 184.0 191.2 188.8 188.4 191.2 172.0 179.4 190.5 193.7 173.7 167.2 166.3 178.3 183.1 Appliances, TV, and radios. . 1.81 180.2 198.8 194.7 194.3 194.6 166.1 164.4 189.5 194.5 147.9 135.0 149.8 181.3 190.3 Appliances......................... 1.33 192.4 211.7 213.1 212.0 212.7 185.5 168.8 200.7 204.3 149.5 147.5 161.6 201.5 216.0 TV and home radios......... .47 145.6 162.6 143.0 144.3 143.8 111.1 152.1 158.0 166.7 143.4 99.7 116.4 124.3 117.8 Furniture and rugs................ 1.26 180.3 179.8 178.2 176.4 181.8 171.4 183.8 182.9 184.8 182.5 181.5 170.0 167.2 168.8 Miscellaneous home goods... 1.52 191.5 191.7 190.5 191.4 194.8 179.6 193.5 197.9 200.2 196.9 193.6 182.9 184.0 186.4 Apparel, knit goods, and shoes. 5.41 138.5 150.0 139.2 140.1 143.6 127.5 142.1 137.9 142.5 142.1 123.2 131.4 141.2 Consumer staples............................ 19.10 162.4 157.6 154.9 153.5 161.2 165.1 175.6 176.6 167.8 163.0 161.6 164.4 165.5 165.5 Processed foods............................. 8.43 136.6 128.6 127.0 128.2 134.7 134.6 150.2 155.6 146.8 141.7 134.7 131.8 133.2 132.1 Beverages and tobacco................... 2.43 146.8 147.5 145.4 148.3 160.8 155.8 164.8 156.4 152.8 137.3 129.7 132.7 140.8 Drugs, soap, and toiletries............. 2.97 209.0 205.0 207.8 203.8 213.3 206.6 211.3 216.9 215.4 214.3 212.0 213.2 220.1 223.3 Newspapers, magazines, and books, 1.47 147.1 145.4 146.5 146.9 145.7 147.5 149.4 151.1 147.0 147.0 149.4 146.4 147.0 148.3 Consumer fuel and lighting........... 3.67 199.6 196.4 184.1 176.0 185.6 214.3 222.6 215.2 194.3 192.5 207.7 226.9 218.2 Fuel oil and gasoline.................. 1.20 144.6 140.0 135.1 139.3 145.1 148.7 148.7 149.4 147.0 151.8 153.5 151.5 149.4 148.3 Residential utilities..................... 2.46 226.3 Electricity............................... 1.72 249.7 247.8 224.5 203.8 219.7 277.9 295.1 278.4 235.2 227.5 258.2 299.9 282.2 Gas......................................... .74 Equipment Business equipment........................ 11.63 195.6 194.6 195.5 196.7 200.0 193.6 195.1 201.6 200.2 193.6 194.8 193.0 197.1 199.7 Industrial equipment.................... 6.85 179.1 176.9 178.6 181.1 184.5 179.4 179.8 185.6 181.8 174.4 177.2 176.9 184.8 187.6 Commercial equipment................ 2.42 220.0 215.3 215.9 219.0 221.7 216.1 221.3 226.2 227.1 226.0 228.5 223.2 220.8 223.0 Freight and passenger equipment. 1.76 246.7 249.6 249.3 245.6 250.4 245.5 244.7 251.9 254.5 247.7 238.5 232.3 231.5 232.4 Farm equipment........................... .61 136.8 152.8 149.6 142.7 143.2 113.7 120.7 137.8 143.8 124.1 132.5 141.0 142.9 Defense equipment......... 3.41 Materials Durable goods materials. 26.73 165.5 165.9 166.4 167.4 171.6 160.5 166.2 170.2 169.7 166.3 161.8 156.8 158.4 162.1 Consumer durable......... 3.43 163 168.1 162.6 161.3 166.0 149.1 161.0 170.0 168.9 163.3 158.4 153.9 144.4 148.9 Equipment..................... 7.84 191.9 192.8 192.4 193.0 195.1 187.2 189.2 195.2 194.2 190.9 192.6 190.3 190.3 192.0 Construction.................. 9.17 152.4 148.3 151.7 155.3 161.6 154.5 160.4 160.3 157.8 152.5 145.9 137.0 140.7 144.4 Metal materials n.e.c.... 6.29 152.8 157.0 157.6 156.6 160.1 142.1 149.0 153.8 157.0 157.3 148.6 145.5 152.0 157.8 Nondurable materials........... 25.92 183.9 182.8 183.4 185.0 187.0 177.3 185.3 188.5 188.4 187.8 183.7 182.5 186.5 187.4 Business supplies................. 9.11 166.6 168.3 166.9 168.6 168.0 156.8 167.5 171.7 174.1 170.9 162.7 161.5 164.5 165.7 Containers....................... 3.03 168.6 171.3 170.9 169.9 172.7 161.4 176.7 177.5 178.6 165.6 154.9 165.0 167.1 165.0 General business supplies. 6.07 165.5 166.8 164.9 168.0 165.7 154.5 162.8 168.8 171.9 173.5 166.6 159.8 163.1 166.0 Nondurable materials n.e.c.. 7.40 237.8 237.4 239.3 240.1 243.0 227.8 235.8 241.3 241.4 244.4 237.6 235.9 243.5 244.4 Business fuel and power......... 9.41 158 153.9 155.4 157.4 161.2 157.5 162.9 163.2 160.6 159.5 161.5 160.8 163.1 163.7 Mineral fuels....................... 6.07 134.9 133.0 135.9 137.3 138.1 129.5 134.8 135.9 136.2 137.8 139.4 137.5 141.7 141.4 Nonresidential utilities........ 2.86 216.7 Electricity........................ 2.32 220.6 207.7 206.4 210.9 224. 231.7 240.2 238.8 227.5 218.3 221.2 224.7 221.1 General industrial........ 1.03 216.1 207.3 209.6 214.5 220.7 215.6 223.6 224.7 225.1 218.4 218.9 215.4 212.6 Commercial and other. 1.21 236.1 218.7 214.3 218.7 239.4 258.0 267.6 263.9 241.7 230.0 235.0 244.8 240.4 Gas.................................. .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 189.1 183.0 182.1 191.1 155.7 160.4 186.9 192.1 175.9 167.4 165.1 171.4 177.1 Apparel and staples................ 24.51 157.1 156.0 151.4 150.5 157.3 156.8 168.2 168.0 162.2 158.4 153.1 157.1 160.2 61 For Note see p. A- . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS 195759 100 ( - = ) Grouping 19 p p 5 r o 7 o r - ­ ­ 59 a a 1 g v 9 e e 6 * r 9 ­ 1969 1970 tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.r Feb.r Mar, Total index. 100.00 172.8 173.1 171.9 172.4 176.7 167.7 174.6 179.2 177.8 173.6 169.6 168.2 171.2 172.8 Manufacturing, total., 86.45 173.9 175.1 173.7 174.4 178.5 167.3 174.3 180.0 179.5 175.0 169.6 167.5 171.1 172.9 Durable................ 48.07 176.5 178.6 177.7 178.3 182.2 169.7 173.6 181.5 181.5 175.4 172.6 169.1 170.6 173.2 Nondurable........... 38.38 170.6 170.8 168.6 169.5 173.9 164.3 175.0 178.1 176.9 174.5 165.9 165 171 172.6 Mining...................... 8.23 130.2 125.4 130.2 132.9 134.6 127.9 132.3 132.9 132.7 132.9 133.1 130.1 134.1 135.2 Utilities.................... 5.32 221.2 Durable manufactures Primary and fabricated metals........ 12.32 162.5 164.0 164.2 164.1 167.9 154.3 161.7 165.7 166.3 165. 161.8 158.3 158.3 162.1 Primary metals............................... 6.95 149.1 155.3 155.3 153.0 155.4 137.2 144.2 148.6 151.9 152.5 144.7 143.1 146.1 152.2 Iron and steel............................. 5.45 140.3 146.0 146.8 144.4 145.6 130.0 135.5 140.0 143.6 144.1 136.7 135.2 136.8 143.0 Nonferrous metals and products. 1.50 181.1 189.0 186.2 184.3 190.8 163.6 176.1 179.9 182.1 183.1 173.9 171.8 179.9 185.5 Fabricated metal products............. 5.37 179.8 175.3 175.6 178.3 184.2 176.4 184.2 187.7 184.8 183.0 183.8 177.9 174.1 175.0 Structural metal parts................ 2.86 173 168.9 169.2 172.2 177.3 170 175.8 178.4 177.7 177.1 178.9 171.9 167.6 167.6 Machinery and related products 27.98 188.4 192.1 190.0 190.5 194.2 180.8 182.0 193.6 193.4 184.6 183.2 181.0 182. 184.9 Machinery...................................... 14.80 195 197.6 197.4 198.5 201.3 190.6 193.2 202.1 200.8 189.6 190.2 191 198.7 200.4 Nonelectrical machinery............. 8.43 194.6 195.5 196.5 197.9 200. 191.1 188.3 197.2 196.7 193.0 197.9 197.9 199.5 201.9 Electrical machinery................... 6.37 197.2 200.5 198.6 199.3 201.9 189.9 199.8 208.5 206.3 185.0 180.1 182.5 197.5 198.3 Transportation equipment............. 10.19 174.6 181.4 176.2 175.6 181.1 161.4 160.6 179.7 181.7 174.2 169.0 163.5 158 161.6 Motor vehicles and parts........... 4.68 166.9 177.7 167.9 165.6 180.9 136.5 137.7 173.8 179.9 170.2 159.4 154.3 148.2 155.7 Aircraft and other equipment... 5.26 177.8 181.1 179.6 180.1 177.0 179.0 177.1 181.9 180.5 174.5 174.1 168.4 163.8 163.7 Instruments and related products.. 1.71 194.4 191.8 192.5 193.3 197.7 192.8 196.5 197.5 196.0 197.6 199.8 192.5 191.1 194.6 Ordnance and accessories.............. 1.28 Clay, glass, and lumber............. 4.72 142.5 140.1 142.8 145.2 150.4 143.6 150.3 150.3 149.1 142.2 132.5 125.6 131.4 134.1 Clay, glass, and stone products. 2.99 156.0 147.4 154.5 159.4 165.9 161.1 167.4 166.7 164.9 157.5 149.1 137.5 142.9 145.5 Lumber and products............... 1.73 119.1 127.5 122.6 120.7 123.6 113.4 120.9 122.1 121.8 115.8 103.8 105.0 111.7 Furniture and miscellaneous.. 3.05 176.7 173.3 173.7 174 179.3 170.6 181.3 181.9 184.0 181.8 181.3 170.2 169.3 171.0 Furniture and fixtures......... 1.54 186.9 184.8 183.8 184.5 189.5 180.4 191.7 190.9 191.0 188.8 190.3 179.7 176.7 178.2 Miscellaneous manufactures. 1.51 166.4 161.6 163.4 165.0 168.9 160.7 170.8 172.7 176.9 174.7 172.2 160.6 161.7 163.6 Nondurable manufactures Textiles, apparel, and leather. 7.60 144.2 154.5 145.4 146.9 149.2 131.2 145.9 143.8 147.2 147.5 130. 138.9 146 146.7 Textile mill products............. 2.90 154.2 159.8 155.7 158.8 161.0 142.1 153.8 154.6 156.7 156.5 145.0 152.1 155.1 157.0 Apparel products.................. 3.59 149.2 163.7 150.8 151.5 153.7 135.6 151.8 149.0 153.1 154.8 131.6 141.4 152.0 Leather and products........... 1.11 101.9 110.9 101.3 101.1 104.2 88.6 106.5 99.2 103.6 100.6 91.4 96.4 103.6 Paper and printing......... 8.17 164.4 165.9 165.3 165.1 165.6 155. 164.3 168.3 172.4 170.2 162. 160.6 166.1 166.2 Paper and products....... 3.43 175.6 180.3 178.4 175.8 179.3 162.3 177.5 180.2 187.0 178.5 163.8 171.2 181.0 177.8 Printing and publishing., 4.74 156.3 155.6 155.7 157.4 155.7 151.2 154.7 159.7 161.9 164.3 162.1 152.9 155.4 157.8 Newspapers................ 1.53 142.7 144.9 146.4 152.2 142.0 126.7 132.1 144.0 153.4 159.6 145.5 129.7 136.4 140.0 Chemicals, petroleum, and rubber.. 11.54 222.6 221.3 222.1 222.8 228.2 216.1 223.1 229.4 227.0 227.1 221.7 218.5 227.0 228.0 Chemicals and products............... 7.58 239.0 237.3 241.9 239.7 244.9 234.7 239.0 244.8 241.1 241.9 239.1 235.2 245.6 246.6 Industrial chemicals.................. 3.84 283.0 280.5 286.1 285.2 287.5 277.1 280.1 289.1 284.0 288.2 286.6 277.7 289.3 Petroleum products...................... 1.97 143.8 137.7 136.5 142.1 149.8 151.1 152.2 152.0 148.2 148.9 145.9 139.0 141.0 143.9 Rubber and plastics products....... 1.99 238.7 243.5 231.9 238.2 242.0 209.7 232.7 247.2 251.7 248.6 230.1 233.7 241.2 Foods, beverages, and tobacco. 11.07 139.0 133.1 131.3 132.8 140.5 139.1 152.9 155.3 148.4 141.2 134.0 132.6 135.5 137.4 Foods and beverages.............. 10.25 140.7 134.4 133.0 133.8 141.3 141.7 155.2 157.9 150.4 143.0 137.3 133.9 136.6 138.6 Food manufactures............. 8.64 136.7 129.0 127.4 128.4 134.7 134.4 149.5 155.0 147.2 142.3 135.3 132.5 134.0 132.7 Beverages............................ 1.61 161.9 163.0 163.2 162.8 176.2 180.8 185.5 173.3 167.5 146.9 148.0 140.9 150.2 Tobacco products................... .82 117.3 116.9 110.3 119.6 130.4 106.5 124.2 123.2 123.9 118.5 93.7 116.5 122.2 Mining Coal, oil, and gas............. 6.80 127.4 124.1 128.3 129.6 130.3 122.6 127.3 128.3 128.6 130.2 131.9 130.4 134.2 134.3 Coal.................................. 1.16 117.7 115.2 121.0 125.1 116.6 91.0 128.4 121.3 126.1 123.8 117.2 110.8 123.8 122.5 Crude oil and natural gas. 5.64 129.3 125.9 129.8 130.5 133.1 129.1 127.1 129.8 129.1 131.5 134.9 134.5 136.4 136.8 Oil and gas extraction.. 4.91 139.0 137.2 139.4 140.2 143.2 138.6 136.3 139.4 138.6 141.1 144.6 143.9 145.9 145.9 Crude oil.................. 4.25 132.0 129.5 132.3 133. 137.8 132.8 129.8 132.9 131.5 133.5 136.3 135.7 137.4 137.6 Gas and gas liquids.. .66 184.0 Oil and gas drilling .73 64.2 Metal, stone, and earth minerals. 1.43 143.5 131.5 139.2 148.9 155.1 152.8 156.0 154.4 152.1 145.9 139.3 128.3 133.6 139.6 Metal mining.............................. .61 142.0 132.7 136.3 147.9 155.3 147.8 153.7 150.4 151.0 142.6 137.1 137.0 142.6 147.3 Stone and earth minerals........... .82 144.7 130.6 141.4 149.7 155.0 156.6 157.8 157.3 152.9 148.3 140.9 121.8 126.9 133.9 Utilities Electric. 4.04 233.0 224.8 214.1 207.9 222.4 251.4 263.6 255.7 230.7 222.2 237.0 256.7 247.2 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 □ MAY 1970 SELECTED BUSINESS INDEXES (1957-59 = 100, unless otherwise noted) Industrial production fac M tu a r n in u g ­ 2 Prices 4 Ca­ Nonag­ Period Total M F a in jo a r l m pr a o r d k u e c t t g s roupi M ng a s te­ Ma g j r o o r u i p n i d n u g s s try i p u n t c t a ( i i e o m c p l n i i e n z t f t r y a g ) ­ . t s C r t c t i a r o o o c u n n n t c s ­ ­ ­ T m r p o t i e u c e l t m o a r n u a y l t l ­ l — ­ ­ i p m E lo m en y ­ t ­ P ro a l y ls ­ s T r a e o t l a e ta s il l 3 s C um on e ­ r W c s o a h m l o e l ­ e­ Total g s C o u o o m n d e ­ s r E m q e u n ip t ­ rials Mfg. M in i g n­ U iti t e il s ­ modity 1951.................... 81.3 78.6 77.8 78.4 83.8 81.9 91.3 56.4 94.0 63 91.1 106.1 80.2 76 90.5 96.7 1952.................... 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 67 93.0 106.1 84.5 79 92.5 94.0 1953.................... 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 70 95.6 111.6 93.6 83 93.2 92.7 1954.................... 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 76 93.3 101.8 85.4 82 93.6 92.9 1955.................... 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 91 96.5 105.5 94.8 89 93.3 93.2 1956.................... 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 92 99.8 106.7 100.2 92 94.7 96.2 1957.................... 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 93 100.7 104.7 101.4 97 98.0 99.0 1958.................... 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74.0 102 97.8 95.2 93.5 98 100.7 100.4 1959.................... 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 105 101.5 100.1 105.1 105 101.5 100.6 1960.................... 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 80.6 105 103.3 99.9 106.7 106 103.1 100.7 1961.................... 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 78.5 108 102.9 95.9 105.4 107 104.2 100.3 1962.................... 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 82.1 120 105.9 99.1 113.8 115 105.4 100.6 1963.................... 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 83.3 132 108.0 99.7 117.9 120 106.7 100.3 1964.................... 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 85.7 137 111.1 101.5 124.3 128 108.1 100.5 1965.................... 143.4 142.5 140.3 147.0 144.2 145.0 114.8 160.9 88.5 143 115.8 106.7 136.6 138 109.9 102.5 1966.................... 156.3 155.5 147.5 172.6 157.0 158.6 120.5 173.9 90.5 145 121.8 113.5 151.7 148 113.1 105.9 1967.................... 158.1 158.3 148.5 179.4 157.8 159.7 123.8 184.9 85.3 153 125.4 113.6 155.1 153 116.3 106.1 1968................... 165.3 164.9 156.7 182.6 165.7 166.8 126.4 201.6 84.5 173 129.2 115.2 167.8 165 121.2 108.7 1969.................... 172.8 170.8 162.5 188.6 174.6 173.9 130.2 221.2 133.5 117.0 180.2 171 127.7 113.0 1969—Mar......... 171.4 170.8 162.8 187.8 172.1 173.1 126.7 215.1 5*84.5 182 132.7 117.3 178.2 169 125.6 111.7 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 I 186 133.8 117.6 180.3 172 127.6 113.2 July......... 174.6 172.8 164.4 190.8 176.5 175.6 133.2 222.2 1 180 133.7 117.3 179.8 170 128.2 113.3 Aug.......... 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 I 173 134.0 117.3 184.2 171 129.3 113.6 Oct.......... 173.1 170.9 161.2 191.9 175.4 173.9 130.2 226.0 I 195 134.5 117.0 183.4 173 129.8 114.0 Nov......... 171.4 168.4 160.5 185.6 174.6 171.8 132.6 226.0 *81.7 178 134.5 115.8 182.2 172 130.5 114.7 Dec.......... 171.1 168.5 160.7 185.2 173.9 171.3 134.4 227.9 J 218 134.6 115.8 184.4 172 131.3 115.1 1970—Jan........... 170.4 168.5 161.5 183.6 172.5 170.2 131.7 230.1 1 205 134.8 115.4 182.4 173 131.8 116.0 Feb.......... 170.5 170.0 162.0 186.2 171.3 170.3 134.3 230.2 I *79.5 215 135.2 114.9 179.3 175 132.5 116.4 Mar......... 171.1 170.6 163.7 185.6 171.8 170.7 136.1 230.0 J 208 135.3 114.9 181.5 174 133.2 116.6 Apr.*....... 170.4 169.4 163.5 182.2 171.4 170.1 135.5 231.5 135.1 113.8 178.8 177 116.5 1 Employees only; excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 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 4 Prices are not seasonally adjusted, value of total construction contracts, including residential, nonresidential, s Figure is for first quarter 1969. 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 y d m at e a n t f o a r n A d l p a a sk yr a o a ll n s d : B H a a s w ed a ii o b n e g B i u n r n e i a n u g w of i th L a 1 b 9 o 5 r 9 . Statistics data; Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1969 1970 Type of ownership and type of construction 1968 1969 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Total construction 1........................ 61,732 67,425 5,003 5,895 7,081 6,443 6,298 6,523 5,140 6,240 4,406 5,228 4,927 5,249 6,140 By type of ownership: Public...................................... 19,597 22,656 1,632 1,791 2,536 2,326 2,352 2,605 1,719 1,626 1,427 1,727 1,433 1,652 Private 1.................................. 42,135 44,769 3,371 4,104 4,545 4,118 3,947 3,918 3,420 4,615 2,980 3,501 3,495 3,597 By type of construction: Residential building 1............. 24,838 25,219 1,957 2,546 2,620 2,548 2,296 2,394 1,952 2,290 1,675 1,744 1,475 1,482 1,974 Nonresidential building........... 22,512 25,667 1,772 2,136 2,680 2,357 2,402 2,460 2,013 2,502 1,566 2,168 2,252 2,269 2,191 Nonbuilding........................... 14,382 16,539 1,274 1,213 1,780 1,538 1,600 1,669 1,174 1,149 1,165 1,317 1,201 1,498 1,975 Private housing units authorized... 1,330 1,299 1,421 1,502 1,323 1,340 1,228 1,245 1,201 1,183 1,191 1,239 1,013 1,137 1,117 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative^are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total N f r a e o r s m n i­ ­ Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v & t e i l o o n p­ Other 2 dential Total Indus­ Com­ b O u t i h l e d r ­ Other ment trial mercial ings 1 196 1 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 19634........ 63,423 44,057 26,187 17,870 2,906 4,995 3,745 6,224 19,366 1,189 7,084 1,690 9,403 196 4 66,200 45,810 26,258 19,552 3,565 5,396 3.994 6,597 20,390 938 7,133 1,729 10,590 196 5 72,319 50,253 26,268 23,985 5,118 6,739 4,735 7,393 22,066 852 7,550 2,019 11,645 196 6 75,120 51,120 23.971 27,149 6,679 6,879 5,037 8,554 24,000 769 8,355 2.195 12,681 196 7 76.160 50,587 23,736 26,851 6,131 6,982 4,993 8,745 25,573 721 8,538 2.196 14,511 196 8 84,692 56,996 28,823 28,173 5,594 8,333 4,873 9,373 27,696 824 9,295 2,046 15,531 196 9 90,866 62,806 30,603 32,203 6,373 10,136 5,521 10,170 28,060 949 1969—Mar. 91,722 62,762 32,423 30,339 6,019 9,751 4,827 9,742 28,960 1,039 Apr.. 92,784 63,050 33,018 30,032 5,857 9,066 5,273 9,836 29,734 1,196 May. 92,359 63,669 32.971 30,698 5,923 9,284 5,428 10,063 28,690 1,003 June. 91,475 63,027 31,635 31,392 6,050 10,020 5,177 10,145 28,448 949 July" 90,806 63,161 30,304 32,857 6,404 10,417 5,566 10,470 27.645 792 Aug. 89.889 62,412 29,284 33,128 6,414 10,343 5,917 10,454 27,477 863 Sept. 91,105 63,725 29,214 34,511 6,714 11,118 5.995 10,684 27,380 920 Oct.r 90,972 63,696 29,415 34,281 6,946 19,856 5,850 10,629 27,096 943 Nov. 88,913 61,927 28,900 33,027 6,571 10,168 6,023 10,265 26,986 779 Dec. 89,463 61,582 28,630 32,952 6,419 10,337 5,861 10,335 27,881 895 1970—Jan.r 89.890 61,837 27,811 34,026 6,433 11,029 5,885 10,679 28,053 937 Feb.1 90,747 62,101 27,419 34,682 6,000 11,724 6,227 10,731 28.646 890 Mar. 90.161 62,155 27,671 34,484 6,032 11,494 6,225 10,733 28,006 * 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 Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (n.s.a.; Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1961........................ 1,313 247 277 473 316 974 3:39 1,365 1,313 52 328 244 83 90 1962........................ 1,463 264 290 531 378 991 471 1,492 1,463 30 339 261 78 118 1963........................ 1,610 261 328 591 431 1,021 589 1,642 1,610 32 292 221 71 151 1964........................ 1,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 59 191 1965........................ 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966........................ 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967........................ 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968........................ 1,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 318 1969........................ 1,467 206 349 588 323 810 87 571 1,500 1,467 33 291 240 51 413 1969—Mar.r........... 1,588 307 397 555 329 824 91 673 136 132 4 23 19 4 32 Apr.r........... 1,505 250 353 570 332 797 92 616 160 159 1 27 23 4 36 Mayr........... 1,533 246 357 602 328 877 78 578 158 156 2 25 21 4 35 Juner........... 1,507 243 322 599 343 826 70 611 151 147 4 26 22 5 36 July r............ 1,429 168 304 584 373 803 63 563 127 125 1 26 21 5 35 Aug.r........... 1,376 186 395 525 270 752 68 556 128 125 3 27 22 4 38 Sept.r........... 1,481 140 365 615 361 828 96 557 133 129 4 23 18 5 40 Oct.r............ 1,390 172 299 574 345 766 93 531 126 123 2 30 25 5 43 Nov.r........... 1,280 164 267 517 332 762 83 435 97 95 3 23 19 4 33 Dec.r........... 1,402 167 297 573 365 776 105 521 85 84 1 27 23 4 27 1970—Jan.r............ 1,059 150 245 444 220 577 66 416 69 66 3 20 17 3 24 Feb.*........... 1,301 234 204 525 329 722 72 507 77 74 3 21 18 4 24 Mar.*........... 1,383 325 277 517 264 690 70 623 117 114 3 30 25 5 29 Note.—Starts are Census Bureau series (including farm starts) except habilitation units under FHA, based on field office reports of first compli­ in the case of Govt.-underwritten, which are from Federal Housing ance inspections. Data may not always add to totals because of rounding. Admin, and Veterans Admin, and represent units started, including re­ Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 64 EMPLOYMENT □ MAY 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 t u . u S l l t a . n i A t o o i . n o n a n - l l N ab N o o t . r S i n . f A o t . r h c e e T l f a S o o b . r A t c o a e . r l Total Total E In m c n u p o l l t n o u a y ra g e l r d i 1 ­ In U pl n o e y m ed ­ U (p n e m e r S a r m . e t A c e n p e . 2 t l n o t y ) ­ agriculture industries 196 4 127,224 51,394 75,830 73,091 69,305 64,782 4,523 3,786 5.2 196 5 129,236 52,058 77,178 74,455 71,088 66,726 4,361 3,366 4.5 196 6 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 19673......... 133,319 52,527 80,793 77,347 74,371 70.527 3,844 2,975 3.8 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,239 80,733 77,902 74,296 3,606 2,831 3.5 1969—Apr. 137,337 54,200 83,950 80,434 77,589 73,928 3,661 2.845 3.5 May 137,549 54,464 83,652 80,130 77,321 73,544 3,777 2,809 3.5 June 137,737 51,857 84,028 80,504 77,741 74,058 3,683 2,763 3.4 July. 137,935 51,617 84,310 80,789 77,931 74,370 3,561 2,858 3.5 Aug. 138,127 52,081 84,517 80,987 78,142 74.528 3,614 2.845 3.5 Sept. 138,317 53,790 84,868 81,325 78,194 74,696 3.498 3,131 3.8 Oct.. 138,539 53,501 85,051 81,523 78,445 74,999 3,446 3,078 3.8 Nov. 138,732 53,812 84,872 81,379 78,528 75,094 3.434 2,851 3.5 Dec. 138,928 54,072 85,023 81,583 78,737 75,302 3.435 2.846 3.5 1970—Jan.. 139,099 54,993 85,599 82,213 79,041 75,615 3,426 3,172 3.9 Feb., 139,298 54,673 85,590 82,249 78,822 75,323 3.499 3,427 4.2 Mar. 139,497 54,489 86,087 82,769 79,112 75,562 3,550 3,657 4.4 Apr. 139,687 54,456 86,143 82,872 78,924 75,338 3,586 3,948 4.8 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 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Contract Transporta­ Period Total M t a u n ri u n f g ac­ Mining con ti s o tr n uc­ ti li o c n u & til i p ti u e b 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 67,860 19,768 610 3,267 4,313 14,081 3,383 10,592 11,846 1969...................................................... 70,141 20,121 628 3,411 4,448 14,644 3,559 11,103 12,227 SEASONALLY ADJUSTED 1969—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 June........................................... 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 Aug............................................ 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........................................... 70,635 20,004 632 3,461 4,484 14,836 3,613 11,264 12,341 Dec............................................ 70,679 20,007 635 3,459 4,489 14,773 3,623 11,297 12,396 1970—Jan............................................. 70,818 19,965 634 3,334 4,521 14,939 3,650 11,349 12,426 Feb............................................ 71,004 19,886 634 3,418 4,511 14,991 3,654 11,415 12,495 Mar.*........................................ 71,060 19,865 633 3,443 4,511 14,947 3,665 11,422 12,574 Apr.*......................................... 70,972 19,721 628 3,378 4,477 14,983 3,682 11,439 12,664 NOT SEASONALLY ADJUSTED 1969—Apr............................................ 69,462 19,952 619 3,255 4,403 14,398 3,517 11,044 12,274 May........................................... 69,929 19,982 624 3,404 4,431 14,517 3,534 11,131 12,306 June........................................... 70,980 20,336 638 3,601 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 Nov........................................... 71,227 20,143 631 3,530 4,506 15,090 3,599 11,230 12,498 Dec............................................ 71,629 20,056 631 3,373 4,498 15,642 3,609 11,229 12,591 1970—Jan............................................. 69,797 19,767 619 3,021 4,453 14,709 3,606 11,133 12,489 Feb............................................ 69,893 19,712 616 3,045 4,439 14,608 3,617 11,232 12,624 Mar.*........................................ 70,297 19,722 617 3,140 4,457 14,698 3,639 11,296 12,728 Apr.*......................................... 70,582 19,564 623 3,270 4,441 14,778 3,667 11,439 12,800 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 bench­ the Armed Forces are excluded. mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted Not seasonally adjusted Industry group 1969 1970 1969 1970 Apr. Feb. Mar.* Apr.* Apr. Feb. Mar.* Apr.* 14,739 14,467 14,468 14,332 14,604 14,312 14,341 14,196 Durable goods.............................................................. 8,634 8,364 8,391 8,284 8,612 8,317 8,361 8,261 Ordnance and accessories.................................... 193 155 151 141 191 155 150 139 Lumber and wood products................................ 525 504 499 496 515 488 488 486 413 399 398 396 407 396 395 391 Stone, clay, and glass products........................... 529 530 522 518 526 505 506 515 Primary metal industries...................................... 1,057 1,068 1,058 1,041 1,069 1,067 1,060 1,053 Fabricated metal products.................................. 1,118 1,104 1,100 1,087 1,110 1,097 1,091 1,079 1,370 1,377 1,372 1,364 1,379 1,385 1,386 1,373 Electrical equipment and supplies....................... 1,369 1,336 1,344 1,329 1,354 1,337 1,334 1,314 1,420 1,262 1,321 1,290 1,430 1,277 1,338 1,299 292 284 284 284 291 283 284 282 Miscellaneous manufacturing industries.............. 348 345 342 338 340 327 329 330 6,105 6,103 6,077 6,048 5,992 5,995 5,980 5,935 Food and kindred products................................. 1,205 1,243 1,234 1,219 1,126 1,156 1,151 1,139 Tobacco manufactures........................................ 68 66 67 67 59 63 61 58 Textile-mill products............................................ 875 856 849 850 872 849 846 848 Apparel and related products.............................. 1,252 1,231 1,225 1,224 1,239 1,238 1,234 1,212 Paper and allied products.................................... 549 562 561 559 544 555 554 554 Printing, publishing, and allied industries........... 672 685 683 681 672 682 683 681 Chemicals and allied products............................. 617 612 609 602 623 607 609 607 Petroleum refining and related industries............. 118 119 120 118 116 116 116 117 Rubber and misc. plastic products........................ 449 444 445 439 446 443 442 436 Leather and leather products............................... 300 285 284 289 295 286 284 283 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 1969 1970 1969 1970 1969 1970 Apr. Feb. Mar.* Apr.* Apr. Feb. Mar.* Apr.* Apr. Feb. Mar. Apr.* Total............................................................... 40.8 39.9 40.2 40.0 127.58 130.94 132.40 131.80 3.15 3.29 3.31 3.32 41.4 40.4 40.7 40.5 137.20 140.24 142.10 141.45 3.33 3.48 3.50 3.51 40.9 41.0 41.0 40.9 138.11 145.25 146.88 147.02 3.41 3.56 3.60 2.63 Lumber and wood products..................... 40.2 40.3 39.8 39.5 106.13 111.79 112.46 112.97 2.64 2.83 2.84 2.86 40.9 39.1 39.3 39.3 103.46 104.49 105.69 105.38 2.58 2.70 2.71 2.73 Stone, clay, and glass products................ 42.0 41.8 41.9 41.7 131.57 134.15 137.12 139.36 3.14 3.28 3.32 3.35 Primary metal industries.......................... 41.8 40.9 40.7 40.2 157.4.5 157.08 157.08 155.94 3.74 3.85 3.85 3.86 Fabricated metal products........................ 41.8 41.1 41.3 41.1 136.21 140.42 141.86 142.04 3.29 3.45 3.46 3.49 42.6 41.8 41.8 41.4 150.80 155.87 157.45 155.25 3.54 3.72 3.74 3.75 Electrical equipment and supplies............ 40.9 39.7 40.2 40.3 122.92 127.04 129.52 128.63 3.05 3.20 3.23 3.24 Transportation equipment........................ 41.5 40.2 40.4 40.2 157.44 157.61 160.40 159.59 3.84 3.98 4.01 4.02 Instruments and related products............. 40.8 40.2 40.7 40.8 125.96 131.86 133.90 133.65 3.11 3.28 3.29 3.30 Miscellaneous manufacturing industries... 39.5 38.7 38.9 39.2 102.44 108.64 109.20 108.64 2.62 2.80 2.80 2.80 Nondurable goods............................................ 39.8 39.3 39.4 39.4 113.08 117.69 118.38 118.17 2.87 3.01 3.02 3.03 Food and kindred products...................... 40.9 40.7 40.7 40.6 117.89 122.80 124.31 124.18 2.94 3.07 3.10 3.12 Tobacco manufactures............................. 36.4 37.4 37.3 37.2 95.94 107.30 105.56 110.17 2.68 2.90 2.90 3.01 41.1 40.0 40.2 40.7 92.92 96.80 97.69 97.20 2.30 2.42 2.43 2.43 Apparel and related products.................. 36.0 35.5 35.5 35.7 81.85 83.78 85.20 84.02 2.28 2.36 2.38 2.36 Paper and allied products........................ 43.4 42.3 42.3 42.1 135.99 139.95 141.04 140.19 3.17 3.34 3.35 3.37 Printing, publishing, and allied industries. 38.3 38.0 38.0 37.9 138.68 144.02 146.30 145.52 3.64 3.81 3.85 3.86 Chemicals and allied products.................. 41.6 41.8 41.9 41.4 142.46 149.34 150.42 150.12 3.40 3.59 3.59 3.60 Petroleum refining and related industries . 42.9 42.7 42.4 41.9 174.10 176.81 176.82 178.51 4.03 4.23 4.22 4.23 Rubber and misc. plastic products........... 41.4 41.0 40.7 40.7 123.82 127.48 127.26 127.35 3.02 3.14 3.15 3.16 Leather and leather products................... 37.7 37.0 37.2 38.1 85.78 92.38 91.14 91.51 2.35 2.47 2.47 2.48 Note.—Bureau of Labor Statistics; data are for production and related workers only. 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A 66 PRICES □ MAY 1970 CONSUMER PRICES (1957-59=100) Housing Health and recreation Period it A em ll s Food Total Rent H ow om ne e r - - F a o u n i e l d l e G a l n e a c d s ­ n F i a n i u n s g h d r s ­ ­ A up p a k p n e a d e re p l T p t o r i a r o n t n a s ­ ­ Total M ic e a d l ­ s P o e n r a ­ l R a i e n n a g d d­ g O a o t n o h d d e s r ship coal tricity opera­ care care re ti c o re n a­ s i e c r e v s ­ tion 1929........................ 59.7 55.6 85.4 1933........................ 45.1 35.3 60.8 1941........................ 51.3 44.2 61.4 64.3 45.2 88.3 51.2 50.6 47.6 57.3 58.2 1945........................ 62.7 58.4 67.5 66.1 53.6 86.4 55.4 57.5 63.6 75.0 67.3 1960........................ 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104.9 103.8 1961........................ 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103.0 105.0 107.3 111.3 104.6 107.2 104.6 1962........................ 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107.2 109.4 114.2 106.5 109.6 105.3 1963........................ 106.7 105.1 106.0 106.8 107.0 104.0 107.8 102.4 104.8 107.8 111.4 117.0 107.9 111.5 107.1 1964........................ 108.1 106.4 107.2 107.8 109.1 103.5 107.9 102.8 105.7 109.3 113.6 119.4 109.2 114.1 108.8 1965........................ 109.9 108.8 108.5 108.9 111.4 105.6 107.8 103.1 106.8 111.1 115.6 122.3 109.9 115.2 111.4 1966........................ 113.1 114.2 111.1 110.4 115.7 108.3 108.1 105.0 109.6 112.7 119.0 127.7 112.2 117.1 114.9 1967........................ 116.3 115.2 114.3 112.4 120.2 111.6 108.5 108.4 114.0 115.9 123.8 136.7 115.5 120.1 118.2 1968........................ 121.2 119.3 119.1 115.1 127.0 115.1 109.5 113.0 120.1 119.6 130.0 145.0 120.3 125.7 123.6 1969........................ 127.7 125.5 126.7 118.8 139.4 117.7 111.5 117.9 127.1 124.2 136.6 155.0 126.2 130.5 129.0 1969—Mar.............. 125.6 122.4 124.4 117.5 135.7 117.2 110.6 116.4 124.9 124.3 134.3 152.5 124.8 128.7 126.1 Apr.............. 126.4 123.2 125.3 117.8 137.1 117.4 111.2 116.9 125.6 124.6 135.1 153.6 125.5 129.6 126.6 May............. 126.8 123.7 125.8 118.1 138.0 117.5 111.2 117.4 126.6 124.0 135.7 154.5 125.8 130.2 126.9 June............. 127.6 125.5 126.3 118.5 138.7 117.5 111.3 117.9 127.0 124.6 136.3 155.2 126.2 130.4 127.9 July.............. 128.2 126.7 127.0 118.8 140.0 117.4 110.9 118.2 126.8 124.3 137.0 155.9 126.6 130.7 129.1 Aug............. 128.7 127.4 127.8 119.3 141.3 117.7 111.5 118.5 126.6 124.2 137.7 156.8 126.8 131.2 130.1 Sept.............. 129.3 127.5 128.6 119.7 142.6 118.1 112.0 119.0 128.7 123.6 138.4 157.6 127.3 131.6 131.3 Oct............... 129.8 127.2 129.2 120.1 143.6 118.4 112.2 119.3 129.8 125.7 138.6 156.9 127.3 132.0 132.2 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 Dec.............. 131.3 129.9 130.5 121.0 145.4 119.2 113.7 120.0 130.8 126.4 139.6 158.1 128.1 132.7 133.5 1970—Jan............... 131.8 130.7 131.1 121.3 146.8 119.7 114.1 120.1 129.3 127.3 140.1 159.0 128.5 133.1 133.9 Feb............... 132.5 131.5 132.2 121.8 148.5 120.6 114.6 120.8 130.0 127.3 140.7 160.1 129.0 133.2 134.3 Mar.............. 133.2 131.6 133.6 122.3 150.9 120.8 114.8 121.6 130.6 127.1 141.4 161.6 129.6 133.6 134.8 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 i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ c f f P e o a e s r o n e s o d d d e ­ s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, t . ­ e c m M a q e h n r e u i a y d n n i ­ p ­ t ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e m p t q r o i a e o u r n n n i t p a s t ­ 1 ­ ­ n c M e e o l i l s u a ­ s ­ 1960........................... 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.9 100.1 101.4 n.a. 101.7 1961........................... 100.3 96.0 101.6 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100.7 102.9 99.5 101.8 n.a. 102.0 1962........................... 100.6 97.7 102.7 100.8 100.6 107.4 100.2 97.5 93.3 96.5 100.0 100.0 102.9 98.8 101.8 n.a. 102.4 1963........................... 100.3 95.7 103.3 100.7 100.5 104.2 99.8 96.3 93.8 98.6 99.2 100.1 103.1 98.1 101.3 n.a. 103.3 1964........................... 100.5 94.3 103.1 101.2 101.2 104.6 97.1 96.7 92.5 100.6 99.0 102.8 103.8 98.5 101.5 n.a. 104.1 1965........................... 102.5 98.4 106.7 102.5 101.8 109.2 98.9 97.4 92.9 101.1 99.9 105.7 105.0 98.0 101.7 n.a. 104.8 1966........................... 105.9 105.6 113.0 104.7 102.1 119.7 101.3 97.8 94.8 105.6 102.6 108.3 108.2 99.1 102.6 n.a. 106.8 1967........................... 106.1 99.7 111.7 106.3 102.1 115.8 103.6 98.4 97.0 105.4 104.0 109.5 111.8 101.0 104.3 n.a. 109.2 1968........................... 108.7 102.2 114.1 109.0 105.7 119.5 102.4 98.2 100.3 119.3 105.2 112.4 115.2 104.0 108.1 n.a. 111.8 1969........................... 113.0 108.5 119.8 112.7 108.0 125.8 104.6 98.3 102.1 132.0 108.2 118.9 119.0 106.1 112.8 100.7 114.7 1969—Mar................. 111.7 106.5 116.4 112.0 107.1 123.4 104.2 98.0 100.9 149.5 107.4 115.8 117.8 105.7 111.9 100.0 112.5 Apr.................. 111.9 105.6 117.3 112.1 107.1 126.0 104.5 97.9 101.2 143.3 108.0 116.5 118.0 105.8 112.3 100.1 112.7 May................ 112.8 110.5 119.4 112.2 106.9 126.1 104.5 98.1 101.1 138.0 108.1 117.5 118.3 105.9 112.6 100.2 112.8 June................ 113.2 111.2 121.4 112.2 107.2 125.7 105.0 98.3 101.2 129.8 108.3 117.9 118.6 105.9 112.8 100.3 115.1 July.................. 113.3 110.5 122.0 112.4 107.7 126.4 105.0 98.2 102.5 125.3 108.4 118.7 119.0 106.1 113.0 100.4 115.5 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 Dec.................. 115.1 111.7 122.6 114.6 109.2 126.5 106.1 98.8 104.5 122.5 109.5 123.8 121.9 107.2 114.5 102.7 117.0 1970—Jan................... 116.0 112.5 125.1 115.1 109.5 126.6 105.6 99.1 104.7 121.6 111.1 124.9 122.5 107.5 116.5 102.9 117.4 Feb.................. 116.4 113.7 125.2 115.5 109.4 126.7 106.4 99.5 104.6 120.2 111.8 126.1 122.8 107.9 116.9 102.9 117.5 Mar................. 116.6 114.3 124.9 115.8 109.5 126.8 106.3 100.0 104.4 119.5 112.1 127.0 123.1 108.1 117.3 103.2 117.8 1 1968 100 For transportation equipment, Dec. = . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ PRICES A 67 WHOLESALE PRICES: DETAIL 195759 100 ( - = ) 1969 1970 1969 1970 Group Group Mar. Jan. Feb. Mar. Mar. Jan. Feb. Mar. Farm products: Pulp, paper, and allied products: Fresh and dried produce. 112.1 116.6 117.2 118.2 Pulp, paper and products, excluding Grains............................. 81.6 85.9 85.9 85.5 building paper and board............ 107.7 111.8 112.5 112.9 Livestock........................ 112.5 117.3 124.9 129.6 Woodpulp........................................ 98.0 103.7 104.7 104.7 Live poultry.................... 95.5 94.8 87.1 90.8 Wastepaper...................................... 108.1 107.5 108.2 108.5 Plant and animal fibers.. 67.3 65.3 65.4 64.9 Paper............................................... 116.1 120.3 121.5 121.6 Fluid milk...................... 132.8 140.5 140.8 139.7 Paperboard...................................... 93.6 96.0 97.1 97.0 Eggs.............................. 110.9 152.2 136.9 120.1 Converted paper and paperboard... 107.6 111.9 112.2 112.9 Hay and seeds................ 112.5 107.7 106.3 106.3 Building paper and board............... 99.6 93.4 93.0 92.9 Other farm products....... 106.8 116.3 115.2 114.8 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 119.3 122.3 123.3 123.7 Iron and steel................................... 108.8 114.6 117.0 117.7 Meat, poultry, and fish...................... 112.2 125.8 124.9 127.1 Steelmill products............................ 111.7 115.5 117.7 118.4 Dairy products................................... 130.4 133.9 134.1 133.1 Nonferrous metals........................... 129.9 152.8 152.8 153.4 Processed fruits and vegetables.......... 115.1 116.9 117.3 116.5 Metal containers.............................. 119.4 120.6 125.0 125.0 Sugar and confectionery.................... 119.5 129.1 127.7 127.4 Hardware........................................ 119.1 124.2 124.7 124.9 Beverages and beverage materials.... 111.3 117.4 118.3 118.4 Plumbing equipment........................ 116.6 122.8 122.8 122.8 Animal fats and oils........................... 96.1 111.0 115.7 133.7 Heating equipment.......................... 96.6 99.7 99.9 100.5 Crude vegetable oils........................... 83.0 86.4 99.5 110.7 Fabricated structural metal products 109.6 114.0 114.6 116.0 Refined vegetable oils......................... 91.6 97.8 99.8 111.9 Miscellaneous metal products......... 120.4 124.9 125.2 127.1 Vegetable oil end products................. 103.1 107.5 107.5 112.4 Miscellaneous processed foods........... 119.3 126.5 127.4 127.1 Manufactured animal feeds................ 115.7 131.7 131.3 119.0 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip.., 131.7 136.7 137.2 137.1 Cotton products.......................... 104.6 106.1 106.1 105.8 Construction machinery and equip., 134.0 140.2 140.3 140.6 Wool products............................ 104.2 104.3 104.3 104.4 Metalworking machinery and equip 131.4 138.6 139.3 139.8 Man-made fiber textile products. 92.1 91.5 91.0 90.4 General purpose machinery and Silk yarns.................................... 155.0 193.5 196.3 194.2 equipment.................................... 119.8 126.1 126.5 127.1 Apparel....................................... 112.8 117.2 117.5 117.9 Special industry machinery and Textile housefurnishings............. 107.7 109.1 109.0 108.6 equipment (Jan. 1961= 100)........ 126.9 133.3 133.4 133.6 Miscellaneous textile products... 121.9 129.0 124.3 126.5 Electrical machinery and equip....... 104.2 106.8 106.9 107.2 Miscellaneous machinery................ 116.5 121.5 121.7 122.3 Hides, skins, leather, and products: Hides and skins........... 109.1 102.8 101.1 99.4 Furniture and household durables: Leather........................ 116.4 119.6 117.3 118.2 Footwear.................... 131.5 135.9 136.9 136.9 Household furniture...................... 121.3 124.3 125.1 125.3 Other leather products. 115.3 119.2 119.8 119.9 Commercial furniture.................... 117.8 124.4 124.5 124.9 Floor coverings.............................. 95.5 93.5 93.5 93.4 Fuels and related products, and power: Household appliances.................... 92.8 94.4 94.4 94.7 Home electronic equipment........... 78.6 77.2 77.2 77.2 Coal.......................................... 112.7 125.4 131.7 133.4 Other household durable goods... 129.6 133.0 134.8 134.6 Coke.......................................... 120.3 126.9 126.9 126.9 Gas fuels (Jan. 1958=100)........ 124.6 132.4 135.2 135.0 Electric power (Jan. 1958= 100). 102.3 103.4 103.6 103.6 Nonmetallic mineral products: Crude petroleum....................... 103.7 104.5 104.5 104.5 Petroleum products, refined.... 101.7 101.0 101.2 100.8 Flat glass........................................ 112.3 118.4 119.0 119.9 Concrete ingredients...................... 115.5 120.1 120.6 120.8 Chemicals and allied products: Concrete products.......................... 111.2 115.9 116.4 117.0 Structural clay products excluding Industrial chemicals........................... 97.9 97.9 97.7 97.3 refractories................................. 116.0 119.4 119.4 119.8 Prepared paint.................................... 118.7 121.7 122.0 122.8 Refractories................................... 112.6 123.5 125.1 125.4 Paint materials................................... 91.9 93.4 92.8 92.6 Asphalt roofing.............................. 99.2 101.8 100.8 97.8 Drugs and pharmaceuticals................ 93.6 94.5 94.6 95.0 Gypsum products.......................... 106.2 107.3 108.3 107.0 Fats and oils, inedible........................ 80.4 95.0 94.3 102.2 Glass containers............................. 116.1 120.9 120.9 120.9 Agricultural chemicals and products.. 92.3 87.6 91.4 92.0 Other nonmetallic minerals........... 107.6 111.0 111.0 112.4 Plastic resins and materials................ 81.3 80.0 80.3 81.2 Other chemicals and products............ 111.2 115.5 115.7 116.5 Rubber and plastic products:1 Transportation equipment: Crude rubber..................................... 88.9 89.3 89.4 87.6 Motor vehicles and equipment... 106.3 109.1 109.1 109.4 Tires and tubes................................. 96.3 101.7 101.7 101.7 Railroad equipment (Jan. 1961 = 100) 110.2 117.4 117.7 118.7 Miscellaneous rubber products.......... 109.7 114.0 114.3 114.3 Plastic construction products (Dec. 1969 = 100)...................................... 99.8 99.1 99.1 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms. ammunition................................ 110.5 114.1 114.2 115.3 Lumber............................................... 164.7 126.9 124.1 123.3 Tobacco products.......................... 116.7 124.0 124.0 124.1 Millwork............................................ 128.8 131.5 130.7 130.7 Notions.......................................... 100.7 107.2 109.0 109.0 Plywood............................................. 146.9 95.5 96.3 94.5 Photographic equipment and supplies 112.0 115.7 115.8 115.9 Other wood products (Dec. 1966 = 100) 112.4 119.5 119.5 119.5 Other miscellaneous products.... 111.4 115.1 114.8 114.8 i Retitled to include the direct pricing of plastic construction products; incorporate (1) new weights beginning with Jan. 1967 data and (2) various continuity of the group index is not affected. classification changes. Back data not yet available for some new classi- Note.—Bureau of Labor Statistics indexes as revised in Mar. 1967 to fications. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 NATIONAL PRODUCT AND INCOME □ MAY 1970 GROSS NATIONAL PRODUCT (In billions of dollars) 1969 1970 Item 1929 1933 1941 1950 1965 1966 1967 1968 1969 I II III IV I* Gross national product................................... 103.1 55.6 124.5 284.8 684.9 749.9 793.5 865.7 932.1 908.7 924.8 942.8 952.2 960.4 Final purchases............................................... 101.4 57.2 120.1 278.0 675.3 735.1 786.2 858.4 924.1 902.1 917.9 932.0 944.5 957.5 Personal consumption expenditures................ 77.2 45.8 80.6 191.0 432.8 466.3 492.3 536.6 576.0 562.0 572.8 579.8 589.5 600.6 Durable goods............................................ 9.2 3.5 9.6 30.5 66.3 70.8 73.0 83.3 89.8 88.4 90.6 89.8 90.4 89.7 Nondurable goods...................................... 37.7 22.3 42.9 98.1 191.1 206.9 215.1 230.6 243.6 238.6 242.1 245.1 248.7 255.3 Services..................................................... 30.3 20.1 28.1 62.4 175.5 188.6 204.2 222.8 242.6 235.0 240.1 244.9 250.3 255.6 Gross private domestic investment.................. 16.2 1.4 17.9 54.1 108.1 121.4 116.0 126.3 139.4 135.2 137.4 143.3 141.8 137.3 Fixed investment......................................... 14.5 3.0 13.4 47.3 98.5 106.6 108.6 119.0 131.4 128.6 130.5 132.5 134.0 134.4 Nonresidential......................................... 10.6 2.4 9.5 27.9 71.3 81.6 83.7 88.8 99.2 95.3 97.8 101.1 102.5 104.3 Structures............................................ 5.0 .9 2.9 9.2 25.5 28.5 27.9 29.3 33.4 32.3 32.1 34.7 34.5 35.9 Producers’ durable equipment............ 5.6 1.5 6.6 18.7 45.8 53.1 55.7 59.5 65.8 63.0 65.7 66.4 68.0 68.4 Residential structures............................. 4.0 .6 3.9 19.4 27.2 25.0 25.0 30.2 32.2 33.3 32.7 31.4 31.6 30.1 Nonfarm............................................. 3.8 .5 3.7 18.6 26.7 24.5 24.4 29.6 31.7 32.8 32.2 30.9 31.0 29.6 Change in business inventories.................. 1.7 - 1.6 4.5 6.8 9.6 14.8 7.4 7.3 8.0 6.6 6.9 10.7 7.7 2.9 Nonfarm................................................. 1.8 -1.4 4.0 6.0 8.6 15.0 6.8 7.4 7.8 6.6 6.7 10.3 7.4 2.6 Net exports of goods and services.................. 1.1 .4 1.3 1.8 6.9 5.3 5.2 2.5 2.1 1.5 1.6 2.7 2.7 3.7 Exports...................................................... 7.0 2.4 5.9 13.8 39.2 43.4 46.2 50.6 55.3 47.6 57.1 57.8 58.6 60.7 Imports...................................................... 5.9 2.0 4.6 12.0 32.3 38.1 41.0 48.1 53.2 46.1 55.5 55.2 55.9 57.0 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 137.0 156.8 180.1 200.3 214.6 210.0 212.9 217.0 218.3 218.8 Federal....................................................... 1.3 2.0 16.9 18.4 66.9 77.8 90.7 99.5 101.9 101.6 100.6 103.2 102.3 100.2 National defense.................................... 13.8 14.1 50.1 60.7 72.4 78.0 79.2 79.0 78.5 80.3 79.2 77.3 Other...................................................... 3.1 4.3 16.8 17.1 18.4 21.5 22.7 22.6 22.1 22.9 23.1 22.9 State and local........................................... 7.2 6.0 7.9 19.5 70.1 79.0 89.3 100.7 112.7 108.5 112.3 113.8 116.0 118.6 Gross national product in constant (1958) dollars........................................................ 203.6 141.5 263.7 355.3 617.8 658.1 674.6 707.6 727.5 723.1 726.7 730.6 729.8 726.9 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) 1969 1970 1929 1933 1941 1950 1965 1966 1967 1968 1969* Item I II III IVp I* National income............................................. 86.8 40.3 104.2 241.1 564.3 620.6 654.0 714.4 771.0 751.3 765.7 780.6 786.5 Compensation of employees........................... 51.1 29.5 64.8 154.6 393.8 435.5 467.4 513.6 564.3 546.0 558.2 571.9 581.1 589.5 Wages and salaries..................................... 50.4 29.0 62.1 146.8 358.9 394.5 423.5 465.0 509.9 493.3 504.3 516.9 525.0 532.4 Private.................................................... 45.5 23.9 51.9 124.4 289.6 316.8 337.3 369.0 405.3 392.5 402.0 410.2 416.6 422.2 Military.................................................. .3 .3 1.9 5.0 12.1 14.6 16.2 18.0 19.2 18.2 18.4 20.1 19.9 19.6 Government civilian............................... 4.6 4.9 8.3 17.4 57.1 63.1 70.0 78.0 85.4 82.5 84.0 86.6 88.5 90.5 Supplements to wages and salaries.............. .7 .5 2.7 7.8 35.0 41.0 43.9 48.6 54.4 52.7 53.8 55.0 56.1 57.1 Employer contributions for social in­ surance ............................................... .1 .1 2.0 4.0 16.2 20.3 21.8 24.4 28.2 27.3 27.9 28.6 29.1 29.6 Other labor income................................ .6 .4 .7 3.8 18.7 20.7 22.1 24.2 26.2 25.5 26.0 26.4 26.9 27.5 Proprietors’ income........................................ 15.1 5.9 17.5 37.5 57.3 61.3 61.9 63.8 66.3 64.6 66.5 67.3 66.7 66.8 Business and professional.......................... 9.0 3.3 11.1 24.0 42.4 45.2 47.2 49.2 50.2 49.7 50.1 50.5 50.4 50.3 Farm.......................................................... 6.2 2.6 6.4 13.5 14.8 16.1 14.7 14.6 16.1 14.9 16.4 16.8 16.3 16.5 Rental income of persons............................... 5.4 2.0 3.5 9.4 19.0 20.0 20.8 21.2 21.6 21.5 21.6 21.7 21.8 22.0 Corporate profits and inventory valuation adjustment.................................................. 10.5 - 1.2 15.2 37.7 76.1 82.4 79.2 87.9 88.2 89.5 89.2 88.8 85.2 Profits before tax...................................... 10.0 1.0 17.7 42.6 77.8 84.2 80.3 91.1 93.7 95.5 95.4 92.5 91.4 Profits tax liability.................................. 1.4 .5 7.6 17.8 31.3 34.3 33.0 41.3 43.3 43.9 44.1 42.8 42.4 Profits after tax...................................... 8.6 .4 10.1 24.9 46.5 49.9 47.3 49.8 50.5 51.7 51.3 49.7 49.0 Dividends............................................ 5.8 2.0 4.4 8.8 19.8 20.8 21.5 23.1 24.6 23.8 24.3 24.9 25.2 25.2 Undistributed profits.......................... 2.8 - 1.6 5.7 16.0 26.7 29.1 25.9 26.7 25.9 27.9 27.0 24.9 23.8 Inventory valuation adjustment................. .5 - 2.1 -2.5 -5.0 -1.7 - 1.8 - 1.1 -3.2 -5.6 - 6.1 - 6.2 -3.7 - 6.2 -5.9 Net interest.................................................... 4.7 4.1 3.2 2.0 18.2 21.4 24.7 28.0 30.6 29.8 30.3 30.9 31.6 32.3 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

MAY 1970 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1969 1970 Item 1929 1933 1941 1950 1965 1966 1967 1968 1969* I II III IV* I* Gross national product................................... 103.1 55.6 124.5 284.8 684.9 749.9 793.5 865.7 932.1 908.7 924.8 942.8 952.2 960.4 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 59.8 63.9 68.6 73.3 77.9 75.9 77.2 78.6 79.9 81.3 Indirect business tax and nontax lia­ bility ................................................ 7.0 7.1 11.3 23.3 62.5 65.7 70.1 77.9 86.6 83.3 85.7 88.0 89.4 91.0 Business transfer payments................. .6 .7 .5 .8 2.7 3.0 3.2 3.4 3.6 3.5 3.6 3.6 3.6 3.7 Statistical discrepancy......................... .7 .6 .4 1.5 -3.1 - 1.0 - 1.0 -2.5 -5.9 -4.2 -6.5 -6.9 - 6.0 Plus: Subsidies less current surplus of gov­ ernment enterprises......................... -.1 .1 .2 1.3 2.3 1.4 .8 1.1 1.1 .9 1.1 1.2 .9 Equals: National income................................ 86.8 40.3 104.2 241.1 564.3 620.6 654.0 714.4 771.0 751.3 765.7 780.6 786.5 Less: Corporate profits and inventory valu­ ation adjustment............................. 10.5 - 1.2 15.2 37.7 76.1 82.4 79.2 87.9 88.2 89.5 89.2 88.8 85.2 Contributions for social insurance---- .2 .3 2.8 6.9 29.6 38.0 42.4 47.0 54.4 52.7 53.8 55.1 56.1 57.3 Excess of wage accruals over disburse­ ments ............................................... Plus: Government transfer payments........... .9 1.5 2.6 14.3 37.2 41.1 48.8 55.8 61.9 60.1 61.3 62.5 63.6 66.3 Net interest paid by government and consumers....................................... 2.5 1.6 2.2 7.2 20.5 22.2 23.6 26.1 28.7 27.9 28.5 28.9 29.7 30.1 Dividends............................................ 5.8 2.0 4.4 8.8 19.8 20.8 21.5 23.1 24.6 23.8 24.3 24.9 25.2 25.2 Business transfer payments................ .6 .7 .5 .8 2.7 3.0 3.2 3.4 3.6 3.5 3.6 3.6 3.6 3.7 Equals: Personal income............................... 85.9 47.0 96.0 227.6 538.9 587.2 629.4 687.9 747.2 724.4 740.5 756.5 767.4 778.5 Less: Personal tax and nontax payments__ 2.6 1.5 3.3 20.7 65.7 75.4 82.9 97.9 117.5 114.2 118.5 117.5 119.9 118.6 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 473.2 511.9 546.5 590.0 629.7 610.2 622.0 639.0 647.5 659.9 Less: Personal outlays................................. 79.1 46.5 81.7 193.9 444.8 479.3 506.2 551.6 592.0 577.7 588.8 596.0 605.8 617.1 Personal consumption expenditures. 77.2 45.8 80.6 191.0 432.8 466.3 492.3 536.6 576.0 562.0 572.8 579.8 589.5 600.6 Consumer interest payments........... 1.5 .5 .9 2.4 11.3 12.4 13.1 14.2 15.3 15.0 15.2 15.4 15.5 15.7 Personal transfer payments to for­ eigners.......................................... .3 .2 .2 .5 .7 .6 .8 .8 .8 .7 .7 .8 .8 .8 Equals: Personal saving................................. 4.2 -.9 11.0 13.1 28.4 32.5 40.4 38.4 37.6 32.5 33.3 43.1 41.7 42.8 Disposable personal income in constant (1958) dollars........................................................ 150.6 112.2 190.3 249.6 435.0 458.9 477.7 497.6 509.5 502.6 506.2 514.1 514.8 518.5 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 1970 Item 1968 1969 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.* Total personal income........................ 687.9 747.2 730.7 735.6 740.0 746.1 751.4 757.5 760.7 763.7 767.6 770.6r774.5 778.5 782.6 Wage and salary disbursements.......... 465.0 509.9 497.9 500.8 503.8 508.5 512.8 517.9 519.9 522.2 525.1 527.8 530.1 532.3 534.7 Commodity-producing industries... 181.5 197.7 193.8 195.2 196.2 198.3 198.9 201.0 201.5 201.8 201.7 203.4 201.3 201.5 202.5 Manufacturing only..................... 145.9 157.6 154.9 155.8 156.3 157.8 158.5 160.5 160.7 160.6 159.8 161.0 160.1 159.3 159.8 Distributive industries.................... 109.2 119.5 116.4 117.2 118.3 119.5 120.1 121.4 121.8 122.3 123.5 123.5 125.9 126.1 126.5 Service industries........................... 78.3 88.1 86.3 86.4 87.0 87.8 88.0 88.8 89.4 90.3 91.5 91.9 93.3 94.6 95.1 Government................................... 96.0 104.5 101.4 101.9 102.3 102.9 105.9 106.8 107.2 107.8 108.4 109.0 109.6 110.1 110.6 Other labor income........................... 24.2 26.2 25.6 25.8 25.9 26.1 26.3 26.4 26.6 26.8 26.9 27.1 27.3 27.5 27.7 Proprietors’ income........................... 63.8 66.3 65.0 65.8 66.5 67.3 67.3 67.3 67.3 67.3 66.7 66.2 r66.5 66.8 67.2 Business and professional............... 49.2 50.2 49.7 50.0 50.1 50.4 50.5 50.5 50.5 50.6 50.4 50.3 50.3 50.3 50.4 Farm.............................................. 14.6 16.1 15.3 15.8 16.4 16.9 16.8 16.8 16.8 16.7 16.3 15.9 r16.2 16.5 16.8 Rental income.................................... 21.2 21.6 21.5 21.5 21.6 21.6 21.7 21.7 21.7 21.8 21.8 21.9 21.9 22.0 22.0 Dividends.......................................... 23.1 24.6 24.1 24.2 24.3 24.5 24.6 24.8 25.1 25.3 25.4 25.0 25.2 25.2 25.2 Personal interest income.................... 54.1 59.4 57.9 58.4 58.8 59.2 59.5 59.8 60.2 60.6 61.3 61.8 62.1 62.4 62.8 Transfer payments............................. 59.2 65.5 64.3 64.7 64.9 65.2 65.7 66.1 66.4 66.7 67.2 67.8 68.9 70.0 70.9 Less: Personal contributions for social insurance........................................ 22.6 26.2 25.6 25.7 25.8 26.1 26.4 26.6 26.7 26.9 26.9 27.1 27.5 27.6 27.8 Nonagricultural income...................... 667.9 725.2 709.5 713.8 717.7 723.4 728.8 734.9 738.1 741.3 745.3 748.6 752.2 755.8 759.6 Agriculture income............................. 20.1 22.0 21.2 21.8 22.3 22.7 22.6 22.6 22.6 22.5 22.3 22.0 r22.3 22.6 23.0 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

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR YEAR 1969 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest U.S. of All State Govt. Sponsored Mone­ Pvt. the sectors Discrep­ Natl, House­ Busi­ and local Total Total credit tary Coml.1 nonbank world ancy savings Sector holds ness govts. agencies auth. banks finance and invest­ ment Transaction category U S U S U S U S U S U S U S U S U S U S U S U S U 1 Gross saving............................................... ........ 81.8 .. .. -5.6 ...... 222.8 ...... 7.8 3.9 .1 3.7 .1 .6 235.1 234.5 1 2 3 C N a e p t i s t a a v l i c n o g n ( s 1 u - m 2) p . t . i .. o .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .. . . .. .. .. . 6 15 6 .5 2.. ..-56 . . . . . . . . . . . . 1 7 4 3 9 .2 6.... 78 2 1 4 6 1 * 9 7 — 6 5 6 1 8 5 4 0 5 6 1 8 5 3 0 9 6 2 3 4 Gross investment (5+10)............................ 137.3 ...... 74.7...... —7.5...... 204.4 ...... 8.6...... 2.2 * 2.7 -.5 3.7 218.9 16.3 225.6 4 5 Private capital expenditures........................ 116.8 ....... 111.1 ...... 227.9 ...... 1.4 6 8 229 2 5 9 229.2 5 6 Consumer durables................................ 89.8...... 89.8...... 89 8 89.8 6 7 Residential construction........................ 22.0...... 10.2...... 32.2...... 32 2 32.2 7 8 Plant and equipment.............................. 5.0....... 92.8...... 97.8...... 1.4 .6 .8 99 2 99.2.......... 8 9 Inventory change................................... 8.0...... 8 0...... 8 0 8 0 9 10 Net financial investment (11-12).................. 20.5...... -36.4...... -7.5...... -23.4 8.6...... .8 * * 2.1 -1.3 3.7 -10.4 10.4 -3.7 10 11 Financial uses............................................. 50.2....... 25.5...... 1.9...... 77.7...... 7.0...... 78.2 9.2 4.1 16.9 48.0 10.1 173.0 6.5 11 12 Financial sources......................................... 62.0 9.4 101.1 - 1.6 77.4 9.1 4.1 14.9 49.3 6.5 183.4 10.1 12 1 1 3 4 G Tr o e l a d s u & r y o f c fi u c r i r a e l n fo c r y e . i . g .. n .. . e .. x .. c .. h .. a . n ... g . e .. . . . . . . . . . . . . . . . . . . . . . . . . 1.4 -.1 - 1 -1.0 .3 .3 * . .3 3 2 .............. 1 1 3 4 1 1 5 6 De P m ri a v n a d te d d ep o o m s e it s s t i a c n .. d .. . c .. u .. r . r .. e .. n .. c .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 .5 2.2 6 0 .4 5.9 * 2 3 8 3 3 3 3 1 3 7 6* .7 4 5 6 . . 9 6 — 6 1 1 5 6 1.1 . .. 5 6 — i 1.1 ^5 — 6 17 18 Foreign............................................... — l 3 2 2 18 2 1 0 9 Tim At e c a o n m d m sa e v r i c n ia g l s b a a c n c k o s u . n .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 1 . . 3 3 -7.8 -7.5 - - 1 4 2 . . 1 0 -.1 - -. 1 .1 - - 1 3 1 . . 0 0 -11 0 -- 1 1 1 2 - — 1 3 T .0 0 - — 1 3 1 . . 0 0 . . . . . . 2 1 0 9 21 At savings institutions......................... 8.0 8.0 * 8.0 * 8.0 8.0 8.0 ... 21 22 Life insurance reserves........................... 4.5 4.5 .1 4 5 .. . 4 5 4.5 4.5 .............. 22 23 Pension fund reserves............................ 15.8 15.8 1.6 14 2 .. 1 42 15.8 15.8 . ... 23 24 Interbank items...................................... .9 .9 * .4 1.0 .5 .9 .9 24 25 Credit market instruments...................... 18.7 31.4 11.4 48.1 7.2 8.9 37.3 88.3 2.6 —3.6 77.3 31.0 8.9 8.8 4 2 14.9 4.3 49.3 17.9 1.9 3.5119.2 119.2 25 26 Corporate shares................................ -4.3 ........ 4.3 -4.3 4.3 12.8 5 5 12.8 5.6 1.5 .2 io!o io!o 26 27 U.S. Government securities................ 13.1 -1.4 4.2 15.8 -1.3 -3.6 -8.0 9.1 — .4 9.1 4.2 -11 2 — 5 — 11 5*5 5,5 .............. 27 28 State and local obligations.................. 3.8 2.3 .1 8.5 6.1 8.5 2.4 1 4 1 0 8.5 8.5 .............. 28 29 Corporate and foreign bonds.............. 4.9 ........ 12.1 2.8 7.7 12.1 6.8 1.7 — .4 .1 7.2 1.6 .5 1.2 14.9 14.9 ... 29 30 Home mortgages................................ -.5 16.0........ -.5 .2 -.3 15.5 .1 -.1 15.6 * 3.9 2 6 9.2 * 15.4 15.4 ... 30 31 Other mortgages................................. 1.8 1.1 ........ 10.8 1.8 11.9 .6 9.5 .6 2 3 6 5 11.9 11.9 ... 31 32 Consumer credit................................. 9.3 1.8 1.8 9.3 7.5 3 3 4 2 9.3 9.3 ... 32 3 3 3 4 B O a th n e k r l l o o a a n n s s n .. . . e .. . . c .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. . 9 0 8.7 1 8 2 . . 9 5 .4 8.7 1 12 4 . . 3 5 3 2 1 1 4 6 . . 3 4 1 2 2 . . 1 5 4.8 —.3 * 16 .5 4 4.2 .. 9.0 . 2 8 .6 1 1.0 — 2 .4 3 2 10 7 .2 4 1 2 6 7 4 .2 ... 3 33 4 35 Security credit......................................... -.8 -2,4 -.8 -2.4 -3.8 -2.2 — 1 2 —2.6 —2.2 — .2 — .2—4.8 —4.8 35 36 To brokers and dealers....................... -.8 -.8 — 1.2 -2.2 — 1 2 —2 2 — 2 —2.2 —2.2 36 37 To others............................................. .......-2.4 -2.4 -2.6 .. —2 6 — 2—2.6 —2.6 37 38 Taxes payable......................................... .8 1.0 3 * 2 1 1.0 1.1 1 38 39 Trade credit............................................ .4 17.3 11.4 .5 17.3 12.3 .9 -.3 .3 3 1.0 .4 19.5 12.4— 7 1 39 40 Equity in noncorporate business............ -4.8 ........-4.8 -4.8 -4.8 —4.8 —4.8 40 41 Miscellaneous claims.............................. 2.1 .3 4.2 6.5 6.3 6.8 .1 .4 3.2 25.1 .3 .5 4 2.3 17.5 .7 6.9 7.0 2.5 16.6 34.9 18 3 41 42 Sector discrepancies (1-4).......................... 9.4 7.1 1.9 18.4 -.8 1.7 1 0 6 —3 1 16 3 16 3 8 9 42 1 Commercial banks and unconsolidated affiliates. A 70 FLOW OF FUNDS □ MAY 1970 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ FLOW OF FUNDS A 71 .1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Transaction category, or sector 1965 1966 1967 1968 1969 IV I II III IV I II III IV Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors................. 70.4 68.5 82.6 97.4 88.2 103.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 1 ?, U.S. Government............................ 1.7 3.5 13.0 13.4 -3.6 20.3 20.2 9.3 29.3 -5.4 -5.3 -13.3 3.7 .4 2 3 Public debt securities................... 1.3 2.3 8.9 10.3 -1.3 16.6 19.3 4.9 24.5 -7.4 -5.7 -12.5 9.4 3.9 3 4 Budget agency issues................... .4 1.2 4.1 3.0 -2.4 3.7 .9 4.4 4.9 2.0 .4 -.7 -5.7 -3.5 4 5 All other nonfinancial sectors. 68.7 64.9 69.6 84.1 91.9 82.8 74.2 72.5 88.7 100.9 94.2 102.0 89.7 81.8 5 6 Capital market instruments......... 39.1 39.9 48.0 50.5 53.6 55.7 48.4 44.2 50.5 59.0 55.0 55.0 51.7 52.9 6 7 Corporate equity shares........... .3 .9 2.4 -.7 4.5 3.8 1.5 -.4 - 1.8 - 2.0 .2 3.2 5.3 9.2 7 8 Debt capital instruments......... 38.8 39.0 45.7 51.2 49.1 51.8 46.8 44.6 52.3 61.1 54.7 51.7 46.4 43.6 8 9 State and local govt, sec....... 7.3 5.7 7.7 9.9 8.5 9.3 7.9 5.4 12.5 13.8 10.2 9.8 6.7 7.1 9 10 Corporate and fgn. bonds... 5.9 11.0 15.9 14.0 13.3 15.3 12.6 13.7 13.2 16.5 15.8 13.3 12.8 11.1 10 11 Mortgages............................. 25.6 22.3 22.0 27.3 27.4 27.3 26.3 25.5 26.6 30.8 28.6 28.6 26.8 25.4 11 12 Home mortgages............... 15.4 11;4 11.6 15.2 15.5 15.7 15.0 14.6 14.6 16.6 16.4 16.6 15.6 13.5 12 13 Other residential................ 3.6 3.1 3.6 3.5 4.4 4.0 3.0 3.1 3.6 4.2 4.2 4.7 4.6 4.3 13 14 Commercial....................... 4.4 5.7 4.7 6.6 5.4 5.1 6.0 5.6 6.6 8.2 5.9 5.1 4.7 6.0 14 15 Farm................................. 2.2 2.1 2.1 2.1 2.0 2.5 2.4 2.3 1.9 1.8 2.2 2.3 2.0 1.6 15 16 Other private credit..................... 29.5 25.0 21.6 33.6 38.3 27.1 25.9 28.3 38.2 41.8 39.2 47.1 38.0 28.9 16 17 Bank loans n.e.c....................... 14.2 10.3 9.6 13.4 14.2 15.9 6.6 10.9 13.5 22.5 16.4 19.5 11.5 9.7 17 18 Consumer credit...................... 10.0 7.2 4.6 11.1 9.3 5.4 9.2 9.8 13.2 12.0 9.9 10.4 8.8 8.4 18 19 Open market paper.................. -.3 1.0 2.1 1.6 3.3 .9 1.1 - 1.1 6.2 .2 5.1 3.9 3.2 1.2 19 20 Other........................................ 5.7 6.4 5.2 7.5 11.3 5.0 8.9 8.8 5.3 7.0 7.9 13.3 14.6 9.6 20 21 By borrowing sector—............... 68.7 64.9 69.6 84.1 91.9 82.8 74.2 72.5 88.7 100.9 94.2 102.0 89.7 81.8 21 22 Foreign........................................ 2.6 1.5 4.1 3.0 3.5 3.3 4.4 2.0 2.6 2.9 4.2 5.5 2.4 2.1 22 23 State and local governments....... 7.6 6.4 7.9 10.2 8.9 9.3 8.2 5.5 12.8 14.3 10.8 10.1 7.0 7.7 23 24 28.8 23.2 19.7 31.8 31.4 27.5 29.6 29.4 33.2 34.9 30.9 35.0 31.9 28.0 24 25 Nonfinancial business.................. 29.6 33.8 37.9 39.1 48.1 42.7 32.1 35.6 39.9 48. 8 48.3 51.4 48.5 44.0 25 26 Corporate................................. 20.5 24.9 29.3 31.0 38.0 33.0 25.6 26.6 31.1 40.7 38.2 42.1 37.8 34.0 26 27 Nonfarm noncorporate.............. 5.8 5.5 5.0 5.2 6.5 5.7 3.1 5.8 6.0 5.8 6.9 5.6 7.0 6.5 27 28 3.3 3.5 3.5 2.9 3.6 4.1 3.3 3.2 2.8 2.2 3.2 3.8 3.7 3.5 28 Funds advanced directly in credit markets 1 Total funds raised........................... 70.4 68.5 82.6 97.4 88.2 103.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 1 Advanced directly by— 2 U.S. Government........................ 2.8 4.9 4.6 5.2 2.6 2.9 6.1 7.1 4.8 2.9 2.3 1.6 3.7 2.8 2 3 U.S. Govt, credit agencies, net... * .3 .5 -.2 .1 * .5 -.1 -.5 -.8 -.2 -.4 -.2 .5 3 4 Funds advanced....................... 2.2 5.1 -.1 3.2 8.9 2.2 6.0 4.0 1.2 1.7 3.9 7.1 10.7 13.1 4 5 Less funds raised in cr. mkt— 2.3 4.8 -.6 3.5 8.8 2.2 5.6 4.1 1.7 2.5 4.1 7.5 10.9 12.6 5 6 Federal Reserve System............... 3.8 3.5 4.8 3.7 4.2 7.3 4.3 6.3 7.2 -2.9 3.1 5.0 -.4 9.2 6 7 Commercial banks, net................ 28.3 16.7 36.8 39.0 9.4 35.0 19.5 22.8 66.7 47.1 9.2 24.7 1.1 3.1 7 8 Funds advanced....................... 29.1 16.8 37.0 39.2 13.7 35.1 19.4 23.5 66.9 47.0 10.1 29.2 6.2 9.9 8 9 Less funds raised...................... .8 .1 .2 .2 4.3 .1 * .7 .2 -.1 .9 4.5 5.0 6.8 9 10 Private nonbank finance.............. 30.1 25.9 36.1 33.5 31.0 28.6 33.8 34.6 32.5 32.9 31.3 34.8 30.7 28.1 10 11 Savings institutions, net........... 13.7 7.8 16.9 14.5 10.3 11.6 15.4 15.7 14.2 12.6 15.7 13.5 6.6 5.6 11 12 Insurance................................. 17.9 19.3 20.4 21.5 22.3 18.3 21.6 21.1 20.4 22.9 20.3 22.6 27.0 19.1 12 13 Finance n.e.c., net.................... -1.4 -1.3 - 1.2 -2.5 - 1.6 -1.4 -3.2 -2.2 - 2.0 - 2.6 -4.7 -1.3 -2.9 3.4 13 14 Foreign........................................ -.3 - 1.8 2.8 2.5 2.0 4.9 -•5 -2.3 3.1 9.4 -1.4 1.3 6.0 2.0 14 15 Private domestic nonfinancial.... 5.6 19.1 -3.0 13.8 38.9 24.5 30.8 13.5 4.2 6.8 44.6 21.7 52.5 36.5 15 16 Business................................... 1.0 3.6 -.6 9.0 11.4 7.2 10.6 10.4 8.6 6.4 13.2 12.6 12.2 7.1 16 17 State and local governments... 2.5 3.4 1.2 .7 7.2 4.5 .6 -1.9 3.1 .9 6.5 4.1 4.9 13.4 17 18 Households.............................. 2.5 11.9 -1.4 5.5 18.7 16.7 16.3 9.4 -6.9 3.0 22.2 4.9 32.2 15.8 18 19 Less net security credit............. .3 -.2 2.2 1.4 - 1.6 3.9 -3.3 4.5 .7 3.6 -2.7 -.2 -3.2 -.2 19 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors.................. 70.4 68.5 82.6 97.4 88.2 103.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 1 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total............................................ 46.3 42.8 47.7 58.1 40.3 62.8 63.2 47.8 58.1 63.4 48.8 28.7 36.4 45.9 2 3 Deposits................................... 40.7 23.7 50.6 44.3 1.4 38.2 32.4 34.3 53.9 56.6 4.1 6.9 -16.1 9.4 3 4 Demand dep. and currency.. 8.0 4.0 11.6 11.2 5.5 10.7 2.7 15.5 11.0 15.8 - 2.8 4.1 * 19.1 4 5 Time and svgs. accounts.... 32.7 19.7 39.1 33.1 -4.1 27.5 29.7 18.9 43.0 40.8 6.9 2.8 -16.2 -9.7 5 6 At commercial banks.. . 19.5 12.5 22.3 20.5 -12.0 15.5 16.7 6.4 31.2 27.5 -6.1 -6.3 -22.1 -13.6 6 7 At savings instit............. 13.1 7.2 16.7 12.6 8.0 12.0 13.0 12.4 11.8 13.3 13.0 9.1 5.9 3.9 7 8 Credit mkt. instr., net.............. 5.6 19.1 -3.0 13.8 38.9 24.5 30.8 13.5 4.2 6.8 44.6 21.7 52.5 36.5 8 9 U.S. Govt, securities............. 2.5 8.5 -2.8 8.9 15.8 15.2 14.6 4.5 6.9 9.6 24.7 -.9 26.3 13.4 9 10 Pvt. credit market instr......... 3.5 10.4 2.0 6.3 21.5 13.2 12.9 13.5 -2.1 .8 17.2 22.4 23.1 22.9 10 11 Less security debt................. .3 -.2 2.2 1.4 - 1.6 3.9 -3.3 4.5 .7 3.6 -2.7 -.2 -3.2 -.2 11 Other sources: 12 Foreign funds.............................. .8 .7 5.0 4.0 10.4 7.5 2.1 1.8 7.1 4.9 12.7 14.4 11.9 2.6 12 13 At banks.................................. 1.1 2.5 2.2 1.5 8.4 2.6 2.6 4.1 4.0 -4.5 14.1 13.1 5.9 .6 13 14 Direct....................................... -.3 - 1.8 2.8 2.5 2.0 4.9 -.5 -2.3 3.1 9.4 -1.4 1.3 6.0 2.0 14 15 Chg. in U.S. Govt, cash bal........ - 1.0 -.4 1.2 - 1.2 .4 3.8 -5.4 -16.2 26.4 -9.6 -6.4 2.1 1.5 4.1 15 16 U.S. Government loans.............. 2.8 4.9 4.6 5.2 2.6 2.9 6.1 7.1 4.8 2.9 2.3 1.6 3.7 2.8 16 17 Pvt. insur. and pension res.......... 15.7 16.7 18.7 18.2 18.7 18.6 16.4 17.5 19.1 19.6 16.7 18.6 22.2 17.3 17 18 Sources n.e.c................................ 5.8 3.8 5.6 13.2 15.8 7.7 11.9 23.9 2.6 14.3 14.9 23.5 17.8 9.5 18 713 For notes see p. A- . . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

71.2 FLOW OF FUNDS □ MAY 1970 3. PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Transaction category, or sector 1965 1966 1967 1968 1969 IV II III IV III IV Demand deposits and currency 1 Net incr. in banking system liability. 7.6 2.6 14.3 10.7 66 16.7 -3.7 .1 39.2 7.2 -10.1 7.3 3.2 24.2 1 2 U.S. Government deposits......... -1.0 -.4 1.1 -1.3 .5 3.7 -5.6 -16.2 26.3 -9.7 -6.3 2.1 1.6 4.3 2 3 Money supply........................... 8.6 3.0 13.2 12.0 6.1 12.9 1.9 16.3 12.9 16.9 -3.9 5.1 1.6 19.9 3 4 Domestic sectors.................... 8.3 3.9 12.6 12.2 5.9 12.3 1.3 17.0 13.5 17.1 -4.1 5.1 .9 20.1 4 5 Households......................... 7.2 3.1 11.4 6.9 3.4 16.1 -10.2 8.8 15.6 13.5 -7.9 5.6 -1.5 17.3 5 6 Nonfinancial business......... -1.4 .7 -2.1 1.3 .5 -5.9 7.1 3.6 -1.2 -4.3 3.8 .6 -1.7 - 1.1 6 7 State and local governments -.2 -.1 -.4 1.1 2.2 -1.2 .6 1.6 -1.9 4.1 1.9 -1.8 4.6 3.9 7 8 Financial sectors................ .3 -.1 1.1 1.0 .4 1.5 -1.5 1.6 2.6 1.3 -1.3 1.0 .8 1.0 8 9 Mail float........................... 2.5 .3 2.7 1.9 -.6 1.7 5.2 1.5 -1.5 2.4 -.6 -.3 -1.3 -1.0 9 10 Rest of the world................... .3 -1.0 .6 -.2 .2 .7 .6 -.7 -.7 -.2 .2 .7 -.2 10 Time and savings accounts 1 Net increase—Total..................... 33.1 20.2 40.8 33.0 -3.0 28.2 29.2 19.1 43.8 39.9 6.5 .6 -15.7 -3.6 1 2 At commercial banks—Total. . 20.0 13.3 23.8 20.6 -11.0 16.3 16.3 6.2 32.3 27.5 -6.8 -7.9 -21.5 -7.8 2 3 Corporate business............... 3.9 -.7 4.1 2.2 -7.8 5.0 -1.8 -3.2 9.5 4.1 -7.2 -7.6 -10.8 -5.6 3 4 State and local governments. 2.4 1.3 2.4 3.2 -7.5 .5 .8 1.3 5.2 5.7 -5.4 -4.0 -10.4 -10.0 4 5 Foreign................................. .6 .8 1.4 * 1.2 1.2 -.7 -.4 1.0 -.1 -.4 -1.4 .7 6.0 5 6 Households........................... 13.3 11.9 15.8 15.1 3.3 9.9 17.6 8.3 16.5 17.8 6.6 5.4 2.0 6 7 At savings institutions............. 13.1 7.0 17.0 12.4 8.0 11.9 12.9 12.9 11.5 12.4 13.4 8.5 4.2 7 Liabilities— 8 Savings and loan assns.. .. 8.5 3.6 10.7 7.3 4.0 6.5 7.7 7.6 7.2 6.8 8.0 4.6 3.0 .5 8 9 Mutual savings banks....... 3.6 2.6 5.1 4.1 2.6 4.2 4.4 4.0 3.4 4.5 3. 2.7 1.5 2.4 9 10 Credit unions.................... 1.0 1.2 1.1 1.4 1.1 .9 1.3 .9 1.2 1.6 1.2 1.3 1.4 10 Assets 11 Households....................... 13.1 7.2 16.7 12.6 12.0 13.0 12.4 11.8 13.3 13.0 9.1 5.9 3.9 11 12 Cr. union deps. at S & L’s. -.2 .3 -.2 -.2 -.1 .5 -.3 -1.0 .3 -.6 -.1 .3 12 U.S. Government securities 1 Total net issues............................ 3.8 8.7 12.6 16.7 5.5 24.1 25.5 13.1 31.2 -3.2 .1 -5.7 14.7 13.1 1 2 Household savings bonds........ .6 .6 .9 .5 -.4 .9 .2 .3 .8 .7 -.5 -.4 -.7 .1 2 3 Direct excluding savings bonds .7 1.8 8.0 9.8 -.9 15.7 19.1 4.6 23.7 - 8.1 -5.2 - 12.1 10.1 3.8 3 4 Budget agency issues................ * * .2 1.4 -.4 .3 -.2 1.9 1.4 2.7 .8 -1.3 -.8 -.2 4 5 Sponsored agency issues.......... 2.1 5.1 -.6 3.2 9.1 3.7 5.2 3.7 1.8 2.1 5.2 7.5 10.9 12.6 5 6 Loan participations.................. .4 1.3 4.0 1.7 -1.9 3.5 1.2 2.6 3.5 -.6 -.3 .6 -4.8 -3.2 6 7 Net acquisitions, by sector........... 3.8 8.7 12.6 16.7 5.5 24.1 25.5 13.1 31.2 -3.2 .1 -5.7 14.7 13.1 7 9 8 U Sp .S o . n s G o o re v d e r c n r m ed e i n t t a ( g a e g n e c n ie c s y sec.) .1 * 1 1. . 3 0 -.1 * -.1 .1 -1 -. . 4 3 - - 1 .3 .6 -.1 .1 1 . . 3 6 - - . . 1 4 - - 1 .5 .0 - - 2 1 . . 1 1 - - 2 .1 .2 - -. . 8 3 - 1 . . 3 0 9 8 10 Direct marketable............... -.2 .3 .9 -.1 -.7 -1.4 -.5 .2 .1 -.2 - 2.1 -.1 -.6 -.6 10 11 FHLB special issue.............. .3 .6 -.9 .3 -.2 .6 .1 -.5 -.3 * * .3 .8 11 12 Federal Reserve System.......... 3.7 3.5 4.8 3.8 4.2 7.3 4.5 6.2 7.4 2.8 3.2 5.0 -.4 9.1 12 13 Foreign.................................... -.2 -2.4 2.1 -.5 - 1.1 4.5 - 2.0 -4.7 .6 4.2 - 6.2 - 1.1 3.6 -.5 13 14 Commercial banks................... -2.3 -3.6 9.4 2.8 - 11.2 1.3 4.2 - 2.2 12.2 -3.1 -15.2 -10.7 -10.3 - 8.1 14 15 Direct................................... -3.1 -3.4 6.3 1.7 -9.4 - 2.2 3.5 - 1.8 9.8 -4.9 -12.5 -11.3 - 6.1 -7.1 15 16 Agency issues....................... .8 -.2 3.2 1.1 - 1.8 3.5 .7 -.4 2.4 1.7 -2.7 .5 -4.1 -.9 16 17 Nonbank finance..................... -.1 .4 -.9 1.6 -.5 - 2.1 4.1 7.4 4.5 -9.7 -3.1 4.4 -3.3 -.1 17 18 Direct................................... -.6 -.2 -1.3 .3 -2.3 -1.7 1.5 6.5 3.1 - 10.0 -5.9 2.3 -5.9 .1 18 19 Agency issues....................... .5 .5 .3 1.3 1.8 -.4 2.5 .9 1.4 .3 2.8 2.0 2.6 -.2 19 20 Pvt. domestic nonfin................ 2.5 8.5 - 2.8 8.9 15.8 15.2 14.6 4.5 6.9 9.6 24.7 -.9 26.3 13.4 20 21 Savings bonds—Households. .6 .6 .9 .5 -.4 .9 .2 .3 .8 .7 -.5 -.4 -.7 .1 21 22 Direct excl. savings bonds... .7 3.3 -3.8 4.6 8.1 9.5 11.4 -1.9 3.1 5.8 18.3 -7.0 19.3 2.0 22 23 Agency issues....................... 1.2 4.7 .2 3.8 8.1 4.8 3.0 6.1 3.1 3.1 6.9 6.5 7.7 11.3 23 Private securities 1 Total net issues, by sector........... 16.1 18.5 27.2 24.2 27.9 29.6 22.9 20.2 24.8 29.0 27.8 28.8 26.2 28.7 1 2 State and local governments... 7.3 5.7 7.7 9.9 8.5 9.3 7.9 5.4 12.5 13.8 10.2 9.8 6.7 7.1 2 3 Nonfinancial corporations___ 5.4 11.4 17.0 12.1 16.4 17.7 12.8 12.8 10.3 12.4 14.7 14.9 16.1 19.8 3 4 5 C Fi o n m an m c e e r c c i o a m l b p a a n n k ie s s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 8 9 . . 1 8 1 . . 2 0 . . 8 2 1 . . 1 6 1. . 1 1 .9 * . . 7 8 . .7 2 -.1 .9 1 . . 1 4 2. . 2 3 1.4 * - 1 .1 .3 4 5 6 Rest of the world................... .8 .5 1.3 1.3 1.4 1.4 1.4 .5 1.1 2.0 1.4 1.6 2.0 .5 6 7 Net purchases............................. 16.1 18.5 27.2 24.2 27.9 29.6 22.9 20.2 24.8 29.0 27.8 28.8 26.2 28.7 7 8 Households............................ 1.1 3.2 -3.0 -3.3 4.3 3.8 7.6 *-11.9 - 8.8 4.4 1.7 5.6 5.7 8 9 Nonfinancial corporations__ .5 1.0 -.4 .4 2.3 .7 .8 2.1 - 2.6 1.3 2.4 2.7 .2 3.7 9 10 State and local governments.. .6 1.1 1.5 .5 2.9 1.8 -.4 1.0 .3 1.0 3.8 3.7 - 1.2 5.0 10 1 1 1 2 C M o u m tu m a e l r s c a i v a i l n b g a s n b k a s n . k .. s .. . . . . . . . . . . . . . . . . . . . . . . . . 5.0 * 1 . . 3 9 9 2. . 3 7 9 1 . . 0 6 1 . . 6 0 10 . . 5 5 2 5 . . 0 2 3 1 . . 2 3 1 1 2 . . 5 6 1 1 5 . . 8 2 2 1. . 1 6 3 1. . 1 3 1.0 * -2. . 7 2 1 11 2 13 Insurance and pension funds.. 11.2 12.9 17.4 17.5 17.3 19.1 16.2 17.1 17.3 19.3 17.0 17.5 19.8 14.8 13 14 Finance n.e.c.......................... -1.7 - 2.2 -.9 -3.7 -2.5 -6.5 -9.5 -6.5 5.5 -4.3 -7.4 -1.9 .2 -.8 14 15 Security brokers and dealers -.1 .1 .1 -.9 .4 -2.5 -1.3 -7.5 8.9 -3.6 .3 -.9 3.4 -1.3 15 16 Investment companies, net.. -1.5 -2.4 - 1.0 - 2.8 -2.9 -4.0 - 8.2 1.0 -3.4 -.7 -7.7 - 1.1 -3.3 .4 16 17 Portfolio purchases......... 1.6 1.4 1.5 1.9 2.7 -1.3 -1.4 3.4 1.4 4.2 -.2 3.6 2.7 4.6 17 18 Net issues of own shares. 3.1 3.7 2.5 4.7 5.6 2.7 6.7 2.5 4.8 5.0 7.5 4.6 6.0 4.1 18 19 Rest of the world.................... -.5 .3 .6 2.2 2.0 -.3 1.0 2.1 2.1 3.6 3.9 .7 .7 2.7 19 Bank 1<oans n.e;.c. 1 Total net borrowing----- 16.6 9.0 7.5 15.7 16.4 12.4 8.1 13.6 16.2 24.9 17.3 24.3 12.2 11.7 1 2 Households.............. 1.4 .4 2.1 3.0 2.0 5.5 2.1 2.6 2.9 4.6 2.1 3.5 1.5 1.0 2 3 Nonfinancial business 12.3 10.1 7.7 10.6 12.5 10.7 4.7 8.3 10.8 18.7 13.9 15.5 11.4 9.2 3 4 Rest of the world .4 -.2 -.2 -.3 -.3 -.2 -.3 * -.3 -.7 .3 .5 -1.4 -.5 4 5 Financial sectors.... 2.4 -1.3 - 2.1 2.3 2.1 -3.5 1.5 2.8 2.7 2.4 1.0 4.8 .7 2.1 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ FLOW OF FUNDS A 71.3 Notes to Table 2 Insurance consists of life companies, fire and casualty companies, private Funds raised, by type and sector. Credit flows included here are the pension funds, and State and local government retirement funds. Finance amounts shown on lines 25-34 of Table 1 by households, business, govern­ n.e.c. is finance companies, open-end investment companies, security ments, and foreigners. All funds raised by financial sectors are excluded. brokers and dealers, agencies of foreign banks, and banks in U.S. posses­ U.S. Government budget issues (line 4) are loan participation certificates sions. issued by CCC, Export-import Bank, FNMA, and GNMA, together with Sources of funds supplied to credit markets. In this section lending by security issues by FHA, Export-import Bank, and TVA. Issues by federally financial sectors is replaced by sources of funds to financial sectors. sponsored credit agencies are excluded as borrowing by financial institu­ Foreign funds at banks are deposits and foreign branch claims on U.S. tions. Such issues are in line 5 of the next section of the table and in U.S. home offices. Sources n.e.c. consist mainly of retained income and mis­ Government securities in Table 3. Corporate share issues are net cash cellaneous liabilities of financial sectors less their miscellaneous assets. issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corporations plus bankers’ acceptances. Notes to Table 3 Funds advanced directly in credit markets. Net purchases, by sector, of the Demand deposits and currency. Lines 5-8 are holder record; line 9 is credit instruments shown in the section above. Financial sectors’ purchases difference between holder and bank record. are shown net of their own funds raised in credit-market forms—securities U.S. Government securities. Includes issues by sponsored credit agencies and loans on lines 25-34 of Table 1. Lines 3, 7,10,11, and 13 reflect such not consolidated into the U.S. Government sector and not included in adjustments. In addition, security credit is included in funds advanced as funds raised in Table 2. Sponsored agencies are listed in notes to Table 4, an asset and deducted from funds advanced as a liability, netting to zero p. A-71.9. Loan participations include FNMA, GNMA, Export-import in the totals. Security credit assets are in lines 8, 13, and 14 and subtracted Bank, and CCC certificates. Where not shown separately, loan participa­ in line 19. Security credit liabilities are in line 19 and subtracted in lines tions are grouped with agency issues. All figures are changes in par values 14 and 19. of holdings. Lines 3-5 cover federally sponsored agencies. Commercial banks include Private securities. Total excludes open-end investment company shares, bank affiliates not consolidated in bank reports. Savings institutions are which are deducted on line 18. savings and loan associations, mutual savings banks, and credit unions. Bank loans n.e.c. Includes lending by bank affiliates. 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Category 1965 1966 1967 1968 1969 IV III IV Households1 1 Personal income.............................. 538.9 587.2 629.4 687.9 747.2 645.9 664.3 680.1 696.1 711.2 724.4 740.5 756.5 767.4 2 Less: Personal taxes & nontaxes... 65.7 75.4 82.7 97.9 117.5 85.7 89.3 92.7 102.6 106.9 114.2 118.5 117.5 119.9 3 Personal outlays................... 444.8 479.3 506.2 551.6 592.1 516.7 535.1 545.1 560.2 566.2 577.7 588.8 596.0 605.8 4 Equals: Personal saving, NIA basis. 28.4 32.5 40.5 38.4 37.6 43.5 39.8 42.3 33.3 38.0 32.5 33.3 43.1 41.7 5 Plus: Credits from Govt, insur.2. 4.8 5.3 6.0 5.6 6.6 6.1 5.3 5.8 5.5 5.8 5.9 6.6 9.3 4.7 6 Capital gains dividends.3 .9 1.3 1.7 2.5 2.5 2.6 3.0 1.8 2.4 2.7 5.0 1.9 2.2 1.1 7 Net durables in consumpt.. 14.8 15.2 12.4 16.9 17.1 12.4 15.2 16.1 18.6 17.6 18.1 18.7 16.3 15.4 Equals: Net saving..................... 49.0 54.3 60.7 63.3 63.9 64.7 63.4 66.0 59.8 64.1 61.4 60.4 70.9 62.9 9 Plus: Capital consumption---- 59.9 64.3 69.8 76.2 82.7 72.2 73.8 75.3 76.9 78.6 80.4 81.8 83.6 85.1 9 10 On owner-occ. homes... 7.1 7.4 7.8 8.2 8.6 8.0 8.1 8.2 8.3 8.3 8.5 8.6 8.7 8.8 10 11 On nonprofit pi. and eq. 1.2 1.3 1.4 1.5 1.4 1.4 1.4 1.5 1.5 1.5 1.5 1.3 1.5 1.3 11 12 On consumer durables.. 51.5 55.6 60.6 66.5 72.7 62.7 64.2 65.7 67.2 68.8 70.4 71.9 73.5 75.0 12 13 Equals: Gross savings................ 108.8 118.6 130.5 139.5 146.6 136.8 137.2 141.3 136.7 142.7 141.8 142.2 154.6 148.0 13 14 Gross investment.......................... 112.4 119.8 131.4 133.3 137.3 139.6 130.8 130.4 132.7 139.4 135.8 125.5 145.3 142.5 14 15 Capital expend, (net of sales). . 89.6 94.2 94.4 109.1 116.8 99.4 105.5 108.0 111.4 111.4 115.7 118.7 117.0 115.8 15 16 Residential construction....... 19.1 18.9 16.9 21.2 22.0 19.7 21.2 21.6 21.3 20.6 22.4 23.0 22.3 20.5 16 17 Consumer durable goods.. .. 66.3 70.8 73.0 83.3 89.8 75.2 79.5 81.8 85.8 86.3 88.4 90.6 89.8 90.4 17 18 Plant and equip, (nonprofit). 4.1 4.5 4.5 4.6 5.0 4.5 4.9 4.6 4.3 4.5 4.9 5.1 4.9 4.9 18 19 Net finan. investment.................. 22.9 25.6 37.0 24.3 20.5 40.3 25.3 22.4 21.3 28.0 20.1 6.8 28.3 26.7 19 20 Net acquis, of financial assets. 53.0 49.3 60.7 58.9 50.2 73.7 51.9 59.3 55.3 69.1 47.5 41.4 55.9 56.3 20 21 Total deposits and curr....... 33.6 22.2 43.9 34.7 14.6 38.0 20.5 29.5 44.0 44.7 11.7 20.0 3.5 23.2 21 22 Demand dep. and curr... 7.2 3.1 11.4 6.9 3.4 16.1 -10.2 8.8 15.6 13.5 -7.9 5.6 -1.5 17.3 22 23 Savings accounts............. 26.4 19.1 32.5 27.7 11.3 21.9 30.6 20.8 28.4 31.1 19.6 14.5 5.1 5.9 23 24 At commercial banks .. 13.3 11.9 15.8 15.1 3.3 9.9 17.6 8.3 16.5 17.8 6.6 5.4 -.8 2.0 24 25 At savings institutions.. 13.1 7.2 16.7 12.6 8.0 12.0 13.0 12.4 11.8 13.3 13.0 9.1 5.9 3.9 25 26 Life insurance reserves. 4.8 4.6 4.8 4.5 4.5 4.7 4.6 4.5 4.5 4.5 5.3 3.7 4.5 4.5 26 27 Pension fund reserves.. 12.3 13.4 15.3 14.9 15.8 15.7 13.3 14.8 15.5 16.1 13.1 16.2 20.0 14.0 27 28 Credit market instruments.. 2.5 11.9 -1.4 5.5 18.7 16.7 16.3 9.4 -6.9 3.0 22.2 4.9 32.2 15.8 28 29 U.S. Govt, securities....... 2.2 7.3 .6 7.1 13.1 11.3 6.2 8.4 2.6 11.1 16.1 2.1 24.1 10.1 29 30 State and local oblig....... 2.3 2.1 -2.1 -.2 3.8 -3.1 1.5 -2.0 2.6 -2.9 5.0 1 .7 3.3 5.0 30 31 Corporate and fgn. bonds .7 2.0 4.0 4.6 4.9 7.2 4.8 7.8 -.8 6.9 4.8 5.3 4.7 4.7 31 32 Investment co. shares. . . . 3.1 3.7 2.5 4.7 5.6 2.7 6.7 2.5 4.8 5.0 7.5 4.6 6.0 4.1 32 33 Other corp. shares........... -5.0 -4.7 -7.4 -12.4 -9.9 -3.0 -5.4 -8.2 -18.5 -17.7 -13.0 -10.0 -8.4 -8.1 33 34 Mortgages....................... -.8 1.4 1 .0 1.6 1.3 1.6 2.5 1.0 2.5 .7 1.7 1.1 2.5 34 35 Net invest, in noncorp. bus.. -1.9 -4.1 -4.6 -3.2 -4.8 -4.4 -4.0 -3.0 -2.9 -3.0 -5.3 -4.5 -4.7 -4.5 35 36 Security credit.................... .5 * 1.1 .7 -.8 1.4 -.5 2.2 -.8 1.9 -1.5 -1.0 -1.8 1.1 36 37 Miscellaneous..................... 1.3 1.2 1.7 1.8 2.1 1.6 1.7 1.7 1 . 1.9 2.0 2.0 2.1 2.2 37 38 Net increase in liabilities......... 30.2 23.6 23.7 34.6 29.8 33.5 26.6 36.9 33.9 41.2 27.4 34.6 27.6 29.6 38 39 Credit mkt. instruments... . 28.8 23.2 19.7 31.8 31.4 27.5 29.6 29.4 33.2 34.9 30.9 35.0 31.9 28.0 39 40 Home mortgages............. 15.2 12.3 10.5 14.9 16.0 14.3 15.5 14.2 14.2 15.6 15.7 17.3 16.6 14.6 40 41 Other mortgages............. 1.2 1.3 1.2 1.1 1.1 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1 1.1 41 42 Instalment cons, credit. .. 8.6 6.2 3.4 9.0 8.3 4.4 7.1 8.4 10.1 10.2 8.3 9.6 7.7 8.0 42 43 Other consumer credit. .. 1.4 1.0 1.2 2.1 1.0 .9 2.1 1.4 3.1 1 1.5 .8 1.1 .5 43 44 Bank loans n.e.c.............. 1.4 .4 2.1 3.0 2.0 5.5 2.1 2.6 2.9 4.6 2.1 3.5 1.5 1.0 44 45 Other loans4.................... .9 2.0 1.3 1.6 2.9 1.2 1.6 1.7 1.8 1.6 2.1 2.7 4.0 3.0 45 46 Security credit. -.2 3.3 2.1 -2.4 5.3 -3.8 -.1 5.5 -4.3 -1.2 -5.0 .9 46 47 Trade debt .3 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 47 48 Miscellaneous.. .4 .3 .4 .3 .3 .3 .4 .4 .4 .4 .3 .3 48 49 Discrepancy (13-14). -3.6 -1.2 -.9 6.2 9.4 -2.8 6.4 10.9 4.0 3.3 6.0 16.7 9.3 5.5 49 719 For notes see p. A- . . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.4 FLOW OF FUNDS □ MAY 1970 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Transaction category, or sector 1965 1966 1967 1968 1969 IV I II III IV I II III IV Nonfinancial business—Total 1 Income before taxes 1...................... 129.5 139.1 135.8 145.1 146.5 137.4 140.2 145.3 147.4 147.4 146.5 148.1 147.9 143.3 1 2 Gross saving.................................... 71.8 77.7 78.1 81.0 81.8 80.2 76.7 81.7 83.3 82.3 81.4 81.7 82.9 80.9 2 3 Gross investment............................. 64.6 69.6 69.9 74.1 74.7 72.4 69.5 73.7 77.6 75.8 75.1 74.2 73.5 75.8 3 4 Capital expenditures.................. 84.1 97.0 93.6 99.2 111.1 98.3 92.0 99.2 98.2 107.5 106.6 107.9 114.7 115.1 4 5 Fixed investment......................... 74.4 82.2 86.2 91.9 103.0 88.8 90.4 89.1 91.0 97.2 100.0 101.0 103.9 107.3 5 6 Business plant & equipment. . . 66.3 76.1 78.2 82.9 92.8 79.7 83.0 80.4 82.5 85.8 89.0 91.3 94.8 96.2 6 7 1-4 family resident, const. 2---- .7 -.7 2.0 .9 -.1 2.3 .1 .9 .4 2.2 1.2 -.2 -1.6 .1 7 8 Other residential...................... 7.4 6.8 6.1 8.1 10.3 6.8 7.3 7.8 8.2 9.2 9.7 9.9 10.8 11.0 8 9 Change in inventories 3............... 9.6 14.8 7.4 7.3 8.0 9.5 1.6 10.1 7.2 10.3 6.6 6.9 10.7 7.8 9 10 Net financial investment................... -19.5 -27.4 -23.7 -25.1 -36.4 -25.9 -22.5 -25.6 -20.6 -31.7 -31.5 -33.7 -41.2 -39.3 10 11 Net increase in financial assets.... 24. 16.5 14.7 28.2 25.5 27.1 33.4 18.3 30.7 30.3 30.2 30.8 24.3 15.9 11 12 Net increase in liabilities 4........... 43.5 43.9 38.4 53.3 62.0 53.0 55.9 43.9 51.3 62.0 61.6 64.5 65.5 55.3 12 13 Credit market instruments....... 29.6 33.8 37.9 39.1 48.1 42.7 32.1 35.6 39.9 48.8 48.3 51.4 48.5 44.0 13 14 Securities.............................. 5.4 11.4 17.0 12.1 16.4 17.7 12.8 12.8 10.3 12.4 14.7 14.9 16.1 19.8 14 15 Home mortgages.................. .1 -1.0 1.1 .3 -.5 1.4 -.5 .3 .4 1.0 .6 -.7 -1.0 -1.1 15 16 Other mortgages.................. 9.1 9.7 9.2 11.0 10.8 10.5 10.2 9.8 10.9 13.1 11.2 10.9 10.2 10.8 16 17 Bank loans n.e.c................... 12.3 10.1 7.7 10.6 12.5 10.7 4.7 8.3 10.8 18.7 13.9 15.5 11.4 9.2 17 18 Other loans 4........................ 2.6 3.6 2.8 5.1 8.9 2.6 4.9 4.4 7.6 3.6 7.9 10.8 11.7 5.3 18 19 Trade debt............................... 9.1 7.4 4.0 6.8 11.4 6.6 11.3 . 1 9.2 7.6 8.1 14.9 14.2 7.9 19 20 Other liabilities........................ 4.9 2.7 -3.5 7.4 2.5 3.7 12.5 8.2 3.2 5.7 5.3 -1.8 2.8 3.3 20 21 Discrepancy (2-3)........................... 7.2 8.0 8.2 6.9 7.1 7.8 7.2 8.1 5.7 6.5 6.3 7.5 9.4 5.1 21 Farm and nonfarm noncorporate business5 1 Net income 1................................... 65.6 69.8 70.7 72.8 75.4 71.2 72.2 72.6 73.1 73.1 73.7 75.6 76.4 75.9 1 2 Gross saving 6................................. 15.2 16.5 17.0 17.9 19.1 17.4 17.6 17.8 18.0 18.3 18.5 19.0 19.1 19.7 2 3 Gross investment............................. 15.2 16.5 17.0 17.9 19.1 17.4 17.6 17.8 18.0 18.3 18.5 19.0 19.1 19.7 3 4 Capital expenditures.................. 21.3 19.9 21.1 22.4 23.6 22.8 21.3 22.3 22.0 23.8 22.6 22.9 23.9 24.9 4 5 Fixed investment.......................... 19.6 19.5 20.2 21.6 23.0 20.8 20.8 21.4 21.4 22.9 22.1 22.9 22.9 24.1 5 6 Change in inventories 3............... 1.7 .4 1.0 .8 .6 2.0 .5 .9 .6 .9 .5 * 1.0 .9 6 7 Net financial investment................... -6.1 -3.4 -4.2 -4.5 -4.5 -5.5 -3.7 -4.5 -4.0 -5.5 -4.1 -3.9 -4.7 -5.3 7 8 Net increase in financial assets---- 1.0 1.1 1.2 1.5 1.3 1.5 1.2 1.6 1.8 1.5 .9 1.3 2.1 1.0 8 9 Net increase in liabilities 4........... 7.1 4.5 5.4 6.0 5.8 7.0 4.9 6.1 5.8 7.0 5.0 5.1 6.8 6.3 9 10 Credit market instruments....... 9.1 9.0 8.5 8.1 10.1 9.7 6.4 9.0 8.8 8.1 10.1 9.4 10.7 10.0 10 11 Mortgages............................. 5.4 4.5 5.8 5.5 5.7 6.5 4.8 5.2 5.3 6.5 6.3 6.1 5.7 4.9 11 12 Bank loans n.e.c................... 1.7 2.2 1.3 1.1 1.6 1.8 1.1 1.6 1.0 .5 1.1 1.5 2.1 1.9 12 13 Other loans 4. ?..................... 2.0 2.2 1.4 1.6 2.7 1.4 .6 2.2 2.5 1.1 2.7 1.8 2.9 3.2 13 14 Trade debt, net........................ * -.4 1.5 1.1 .5 1.7 2.5 .2 -.1 2.0 .2 .2 .8 .8 14 15 Proprietors’ net investment .. -1.9 -4.1 -4.6 -3.2 -4.8 -4.4 -4.0 -3.0 -2.9 -3.0 -5.3 -4.5 -4.7 -4.5 15 Nonfinancial corporate business 1 Profits before tax............................. 65.7 71.1 66.2 75.6 76.6 69.4 73.3 75.3 75.1 78.4 78.9 78.7 75.2 73.6 1 2 Less: Profits tax accruals............... 27.5 30.0 28.1 35.6 36.7 29.5 34.5 35.4 35.4 36.9 37.6 37.6 36.0 35.4 2 3 Net dividends paid............... 16.8 18.1 19.0 20.3 21.6 18.6 19.7 20.1 20.6 20.9 20.8 21.4 21.9 22.1 3 4 Equals: Undistributed profits......... 21.3 22.9 19.1 19.7 18.4 21.4 19.1 19.8 19.1 20.6 20.5 19.7 17.3 16.1 4 5 Plus: Foreign branch profits, net....... 1.8 1.8 2.1 2.4 2.5 2.5 2.1 2.4 2.5 2.5 2.5 2.3 2.4 2.6 5 6 Inv. valuation adj.................... -1.7 -1.8 -1.1 -3.2 -5.6 -3.3 -5.3 -2.6 - .9 -4.2 -6.1 -6.2 -3.7 -6.2 6 7 Capital consumption............. 35.2 38.2 41.2 44.3 47.4 42.3 43.2 44.2 44.6 45.1 46.0 46.9 47.8 48.7 7 8 Equals: Gross internal funds.......... 56.6 61.2 61.2 63.1 62.7 62.8 59.1 63.9 65.3 64.1 63.0 62.7 63.8 61.2 8 9 Gross investment (10+15).............. 49.4 53.1 53.0 56.2 55.6 55.1 51.9 55.9 59.6 57.5 56.6 55.2 54.3 56.2 9 10 Capital expenditures................ 62.8 77.1 72.5 76.9 87.5 75.5 70.7 76.9 76.2 83.7 84.0 85.0 90.8 90.2 10 11 Fixed investment......................... 54.9 62.7 66.0 70.3 80.0 68.0 69.6 67.7 69.7 74.3 77.9 78.0 81.0 83.3 11 12 Plant and equipment................ 52.8 61.6 63.8 68.0 77.2 65.3 67.9 65.5 67.6 70.9 74.6 75.7 78.6 79.7 12 13 Residential construction........... 2.0 1.1 2.2 2.3 2.9 2.7 1.7 2.2 2.1 3.4 3.2 2.3 2.4 3.6 13 14 Change in inventories 3............... 7.9 14.4 6.4 6.5 7.4 7.5 1.1 9.2 6.5 9.4 6.1 7.0 9.7 6.9 14 15 Net financial investment................... -13.4 -24.0 -19.5 -20.7 -31.9 -20.4 -18.8 -21.0 -16.6 -26.2 -27.4 -29.8 -36.4 -34.1 15 16 Net acquis, of finan. assets........... 23.1 15.5 13.5 26.6 24.2 25.6 32.2 16.7 28.8 28.8 29.3 29.6 22.3 14.9 16 17 Liquid assets............................ 1.7 1.9 * 10.1 2.3 5.2 13.7 8.5 13.7 4.5 8.0 4.2 -3.0 -.6 17 18 Demand dep. and curr......... -1.5 .7 -2.2 1.3 .5 -5.9 7.1 3.6 -1.2 -4.3 3.8 .7 -1.7 - 1.1 18 19 Time deposits....................... 3.9 -.7 4.1 2.2 -7.8 5.0 -1.8 -3.2 9.5 4.1 -7.2 -7.6 -10.8 -5.6 19 20 U.S. Govt, securities............. -1.6 -1.2 -3.1 1.8 -1.4 1.3 7.6 -.9 1.7 -1.3 6.1 -3.2 -3.8 -4.9 20 21 Open market paper............... .5 2.0 1.5 4.5 8.7 4.1 .1 6.9 6.2 4.7 2.9 11.7 13.1 7.2 21 22 State and local oblig............. .5 1.0 -.4 .4 2.3 .7 .8 2.1 -2.6 1.3 2.4 2.7 .2 3.7 22 23 Consumer credit...................... 1.2 1.2 .9 1.7 1.3 .4 1.8 1.5 2.1 1.1 1.6 .9 1.4 .7 23 24 Trade credit............................. 15.1 11.3 8.8 14.8 17.3 14.1 15.2 9.0 16.5 18.6 18.3 18.2 18.5 14.1 24 25 Other financial assets 9............ 5.1 1.0 3.8 .1 3.4 6.0 1.4 -2.3 -3.5 4.6 1.3 6.2 5.4 .8 25 26 Net increase in liabilities.............. 36.5 39.4 33.0 47.3 56.2 46.0 51.0 37.8 45.5 55.0 56.6 59.4 58.7 48.9 26 27 Credit market instruments....... 20.5 24.9 29.3 31.0 38.0 33.0 25.6 26.6 31.1 40.7 38.2 42.1 37.8 34.0 27 28 Corporate bonds.................. 5.4 10.2 14.7 12.9 12.1 14.0 11.5 13.4 12.1 14.6 14.6 12.5 10.5 10.7 28 29 Corporate stock.................... * 1.2 2.3 -.8 4.3 3.6 1.3 -.6 -1.9 -2.2 ,1 2.4 5.6 9.1 29 30 Mortgages............................. 3.9 4.2 4.5 5.8 4.5 5.3 4.9 4.9 5.9 7.6 5.6 4.2 3.5 4.9 30 31 Bank loans n.e.c................... 10.6 7.9 6.4 9.6 10.9 8.8 3.6 6.7 9.8 18.2 12.8 14.0 9.3 7.3 31 32 Other loans ...................... .6 1.4 1.4 3.6 6.2 1.2 4.4 2.2 5.1 2.6 5.2 9.0 8.8 2.0 32 33 Profit tax liability.................... 2.2 .2 -4.1 3.7 .8 1.0 10.4 3.4 -1.9 2.9 5.6 -3.9 .8 .5 33 34 Trade debt............................... 9.1 7.8 2.6 5.7 10.9 4.9 8.8 -.1 8.3 5.6 7.9 14.7 13.4 7.1 34 35 Other liabilities........................ 4.6 6.5 5.2 6.9 6.5 7.2 6.2 7.8 8.0 5.7 5.0 6.5 6.7 7.4 35 36 Discrepancy (8-9)........................... 7.2 8.0 8.2 6.9 7.1 7.8 7.2 8.1 5.7 6.5 6.3 7.5 9.4 5.1 36 37 Memo: Net trade credit.................. 5.9 3.5 6.2 9.2 6.4 9.1 6.4 9.0 8.2 13.0 10.5 3.5 5.1 7.0 37 38 Profits tax payments 11................... 25.8 30.5 32.7 32.0 36.0 28.3 23.3 33.3 37.3 34.0 32.8 41.9 35.1 34.0 38 For notes see p. A-71.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ FLOW OF FUNDS A 71.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Category 1965 1966 1967 1968 1969 IV I II III IV I II III IV State and local governments-—General funds 1 1 Net surplus, NIA basis................... 1.0 1.3 -2.0 -1.5 -.6 -1.4 -3.1 -1.3 -.7 -.8 -1.8 -2.0 -.3 1.8 1 2 Less: Retirement cr. to households . 3.3 4.0 4.6 4.3 5.0 4.2 3.9 3.9 4.6 4.7 4.1 5.3 7.0 3.5 2 3 Equals: Gross saving..................... -2.4 -2.7 -6.6 -5.7 -5.6 -5.7 -6.9 -5.2 -5.3 -5.5 -5.9 -7.3 -7.3 -1.7 3 4 Net financial investment................... -3.1 -2.1 -5.2 -5.6 -7.5 -5.7 -6.8 -4.6 -6.9 -4.0 -8.3 -12.4 -8.3 -1.0 4 5 Net acq. of financial assets........... 4.9 4.8 3.2 5.1 1.9 4.1 1.9 1.4 6.4 10.8 3.0 -1.8 -.8 7.2 5 6 Currency and demand deposits. -.2 -.1 -.4 1.1 2.2 -1.2 .6 1.6 -1.9 4.1 1.9 -1.8 4.6 3.9 6 7 Time deposits........................... 2.4 1.3 2.4 3.2 -7.5 .5 .8 1.3 5.2 5.7 -5.4 -4.0 -10.4 -10.0 7 8 Credit market instruments....... 2.5 3.4 1.2 .7 7.2 4.5 .6 -1.9 3.1 .9 6.5 4.1 4.9 13.4 8 9 U.S. Government securities.. 1.9 2.4 -.3 .1 4.2 2.6 .9 -3.0 2.6 -.3 2.5 .2 5.9 8.2 9 10 Direct............................... 1.3 2.2 -.9 -.8 2.0 .8 -.3 -5.6 3.3 -.4 .5 -.7 2.6 5.6 10 11 U.S. Govt, agency sec...... .6 .1 .6 .8 2.2 1.8 1.2 2.6 -.7 .1 2.0 .9 3.4 2.6 11 12 State and local securities---- -.1 * * * .1 * -.2 .2 * .1 * .1 .1 * 12 13 Corporate bonds.................. .7 1.1 1.5 .4 2.8 1 7 .2 .8 .3 .9 3.8 3.6 -1.2 5.0 13 14 Home mortgages.................. * * * .2 .2 .1 .1 .2 .2 .2 .2 .2 .2 .2 14 15 .1 .2 * 1 .3 -.1 .4 .1 .1 * .1 -.1 15 16 Net incr. in liabilities.................... 8.0 6.9 8.4 10.7 9.4 9.8 8.7 6.0 13.3 14.8 11.3 10.6 7.5 8.2 16 17 Credit mkt. borrowing............. 7.6 6.4 7.9 10.2 8.9 9.3 8.2 5.5 12.8 14.3 10.8 10.1 7.0 7.7 17 18 State & local obligations....... 7.3 5.7 7.7 9.9 8.5 9.3 7.9 5.4 12.5 13.8 10.2 9.8 6.7 7.1 18 19 Short-term........................ .6 .7 1.7 1.6 4.1 1.2 1.9 * .8 3.9 4.3 4.4 2.9 4.7 19 70 Other................................. 6.7 5.1 6.1 8.3 4.4 8.0 6.1 5.4 11.7 9.9 6.0 5.4 3.9 2.4 20 21 U.S. Govt, loans.................. .3 .6 .2 .3 .4 * .2 .2 .3 .5 .5 .3 .3 .5 21 22 Trade debt............................... .4 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 22 23 Discrepancy (7-8)........................... .7 -.7 -1.4 -.2 1.9 -.2 -.6 1.6 -1.6 2.3 5.1 1.0 -.7 23 U.S. Government 2 1 Total receipts, NIA basis................ 124.7 142.5 151.1 176.3 201.5 156.4 165.7 170.8 181.4 187.3 198.6 202.8 201.3 203.3 1 2 Personal taxes............................. 53.8 61.7 67.5 79.5 95.6 70.0 72.1 74.7 83.7 87.4 93.8 96.9 95.0 96.7 2 3 Corp. profits tax accruals............ 29.3 32.1 30.6 38.3 40.2 32.0 37.0 38.1 38.4 39.8 40.7 41.0 39.8 39.4 3 4 Indirect taxes............................... 16.5 15.7 16.3 18.0 18.8 16.7 17.4 17.9 18.3 18.5 18.5 18.6 19.1 19.1 4 5 Insurance receipts........................ 25.1 33.0 36.7 40.5 46.9 37.7 39.3 40.1 40.9 41.7 45.6 46.4 47.5 48.1 5 6 Total expenditures, NIA basis........ 123.5 142.8 163.5 181.5 192.0 168.4 174.2 180.3 184.1 187.4 188.5 189.3 193.6 196.7 6 7 Goods and services...................... 66.9 77.8 90.7 99.5 101.9 93.5 96.3 99.0 100.9 101.9 101.6 100.6 103.2 102.3 7 8 Grants and donations.................. 24.2 29.0 30.8 33.5 36.8 32.1 32.1 33.1 34.0 34.9 35.0 36.0 36.6 39.5 8 9 Net interest.................................. 8.7 9.5 10.0 11.6 13.1 10.3 11.1 11.4 11.6 12.2 12.5 12.9 13.1 13.7 9 10 Insurance benefits........................ 23.7 26.4 32.0 36.9 40.3 32.4 34.7 36.7 37.6 38.5 39.4 39.8 40.7 41:2 10 11 Net surplus, NIA basis................... 1.2 -.2 -12.4 -5.2 9.4 -12.0 -8.4 -9.5 -2.7 -.1 10.1 13.5 7.7 6.6 11 12 Less: Insur. credits to households) . 1.4 1.4 1.4 1.3 1.7 1.8 1.5 1.8 .9 1.0 1.8 1.3 2.4 1.2 12 13 Equals: Gross saving...................... -.2 -1.6 -13.8 -6.5 7.8 -13.8 -9.9 -11.3 -3.7 -1.1 8.3 12.2 5.3 5.3 13 14 Net financial investment................... -.8 -.1 -12.5 -6.3 8.6 -11.1 -9.4 -10.5 -3.1 -2.3 9.3 14.6 4.0 6.4 14 15 Net acquis, of finan. assets........... 3.0 5.4 2.8 9.3 7.0 11.4 13.6 — 1.1 29.2 -4.6 5.0 3.6 9.5 9.9 15 16 Demand deposits & currency.. -1.4 -.1 1.0 -1.7 1.1 4.6 -6.8 -14.3 24.8 -10.4 -3.1 1.6 2.2 3.7 16 17 Credit market instruments....... 2.8 4.9 4.6 5.2 2.6 2.9 6.1 7.1 4.8 2.9 2.3 1.6 3.7 2.8 17 18 Agency securities4................ * 1.3 -.1 .1 -1.3 -.3 -.1 1.6 -.1 -1.0 -1.1 -2.2 -.8 -1.0 18 19 Mortgages............................. -.1 .8 .9 1.1 .7 1.1 1.3 1.5 1.0 .7 .4 .8 .8 .8 19 20 Other loans........................... 2.9 2.8 3.8 3.9 3.2 2.1 4.9 3.9 3.8 3.1 2.9 3.0 3.8 3.0 20 Excess of tax accruals 21 Over receipts........................ 1.2 -.7 -4.6 3.3 1.0 1.2 10.9 1.8 -1.4 2.0 5.0 -3.7 1.4 1.5 21 22 Other financial assets3............. .5 1.3 1.8 2.5 2.3 2.7 3.3 4.5 1.0 1.0 .9 4.1 2.2 1.9 22 23 Net increase in liabilities.............. 3.8 5.5 15.3 15.6 — 1.6 22.5 23.0 9.5 32.3 -2.2 —4.3 -11.0 5.4 3.5 23 24 U.S. Government securities.... 1.7 3.5 13.0 13.4 -3.6 20.3 20.2 9.3 29.3 -5.4 -5.3 -13.3 3.7 .4 24 25 Savings bonds—households.. .6 .6 .9 .5 -.4 .9 .2 .3 .8 .7 -.5 -.4 -.7 .1 25 26 Direct excl. savings bonds... .7 1.8 8.0 9.8 -.9 15.7 19.1 4.6 23.7 -8.1 -5.2 -12.1 10.1 3.8 26 27 Budget agency sec.6............. .4 1.2 4.1 3.0 -2.4 3.7 .9 4.4 4.9 2.0 .4 -.7 -5.7 -3.5 27 28 Life & retirement reserves....... 1.4 1.4 1.4 1.3 1.7 1.8 1.5 1.8 .9 1.0 1.8 1.3 2.4 1.2 28 29 Other liabilities........................ .7 .6 .9 .9 .4 .3 1.3 -1.7 2.0 2.2 -.8 .9 -.6 1.9 29 30 Discrepancy (13-14)........................ .6 -1.5 -1.3 -.2 -.8 -2.7 -.6 -.8 -.6 1.3 -1.0 -2.5 1.3 -1.0 30 31 Memo: Corp. tax receipts, net........ 28.1 32.8 35.1 35.0 39.2 30.8 26.1 36.3 39.9 37.7 35.7 44.7 38.4 37.9 31 Federally sponsored credit agencies6 1 Current surplus............................... .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 1 2 Net increase in assets...................... 2.3 5.3 -.1 3.2 9.2 2.2 6.3 4.0 1.0 1.6 4.3 7.4 11.7 12.6 2 3 Credit market instruments........... 2.2 5.1 -.1 3.2 8.9 2.2 6.0 4.0 1.2 1.7 3.9 7.1 10.7 13.1 3 4 U.S. Government secutiries.... .1 1.0 * -.1 -.4 -1.6 .1 .3 -.4 -.5 -2.1 -.1 -.3 .3 4 5 Residential mortgages............. .5 1.9 1.1 1.6 3.9 1.9 2.2 2.1 1.1 1.1 1.7 2.5 4.7 6.6 5 6 Farm mortgages....................... .6 .7 .7 .5 .6 .7 .6 .6 .4 .4 .6 .8 .6 .3 6 7 Other loans............................... 1.0 1.6 -1.8 1.2 4.8 1.1 3.1 1.0 .1 .6 3.7 4.0 5.7 5.9 7 8 To coops (BC)...................... .1 .2 .2 .1 .2 .2 .2 -.1 * .1 .2 .2 -.1 .3 8 9 To farmers (FICB)............... .3 .4 .5 .2 .6 .6 .4 .2 * .3 .6 .7 .4 .8 9 10 To S & L’s (FHLB)............. .7 .9 -2.5 .9 4.0 .3 2.4 .8 * .2 2.9 3.1 5.3 4.8 10 11 Net increase in liabilities................. 2.2 5.2 -.2 3.2 9.1 2.0 5.8 4.3 1.5 1.3 4.4 6.9 12.0 13.2 11 12 Credit market instruments........... 2.3 4.8 -.6 3.5 8.8 2.2 5.6 4.1 1.7 2.5 4.1 7.5 10.9 12.6 12 13 Agency securities...................... 2.1 5.1 -.6 3.2 9.1 3.7 5.2 3.7 1.8 2.1 5.2 7.5 10.9 12.6 13 14 U.S. Government loans......... .2 -.2 -.1 .2 -.3 -1.5 .3 .4 -.1 .4 -1.1 14 15 Miscellaneous liabilities............... * .4 .5 -.3 .4 -.2 .3 .2 -.2 -1.3 .3 -.6 1.1 .6 15 For notes see p. A-71.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.6 FLOW OF FUNDS □ MAY 1970 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Category 1965 1966 1967 1968 1969 IV I II III IV I II III IV Monetary authorities 1 1 Current surplus............................... * * * * * * * * * * * * * * 1 2 Net acquisition of financial assets. . . 2.3 4.2 4.8 3.8 4.1 7.4 1.8 1.8 3.9 7.6 .3 4.0 5.1 7.0 2 3 Gold and foreign exchange 2....... -1.3 -.3 -.5 -1.2 -.1 -.8 -6.2 -2.6 1.1 3.1 * -.9 2.0 -1.5 3 4 Treasury currency........................ .2 .7 .5 .2 * .2 .7 -.3 .1 .3 .1 -.4 .2 .3 4 5 F.R. float..................................... -.4 .3 * 1.0 * -.1 1.7 .4 -5.0 6.9 -3.8 -.3 3.2 .6 5 6 F.R. loans to domestic banks.... -.1 .1 * * * .9 1.4 -1.9 .6 .1 .9 .5 .2 -1.6 6 7 Credit mkt. instruments............... 3.8 3.5 4.8 3.7 4.2 7.3 4.3 6.3 7.2 -2.9 3.1 5.0 -.4 9.2 7 8 U.S. Govt, securities................ 3.7 3.5 4.8 3.8 4.2 7.3 4.5 6.2 7.4 -2.8 3.2 5.0 -.4 9.1 8 9 2.2 4.2 4.7 3.8 4.1 7.4 1.8 1.8 3.9 7.6 .3 4.0 5.1 6.9 9 10 Member bank reserves................ .4 1.3 1.2 .9 .2 1.4 2.9 -1.6 -.8 2.9 .1 2.3 -1.1 -.4 10 11 Vault cash of coml. banks 3........ .3 .6 .5 1.3 .2 2.9 -3.3 1.7 3.7 2.9 -.3 .9 .3 -.3 11 Demand deposits and currency 12 U.S. Government.................... * .2 .9 -1.1 . 6 2.3 -3.5 -.5 -.3 * -.1 -.1 .1 2.4 12 13 Foreign 4................................. -.1 .2 * .1 -.1 * .4 -.2 .1 .1 -.2 * -.1 -.1 13 14 Currency outside banks........... 2.1 2.0 2.1 2.4 2.8 .5 3.7 3.1 1.0 1.9 1.4 3.2 2.3 4.3 14 15 Other........................................... * -.1 * .2 .4 .1 1.5 -.8 .2 -.2 -.7 -2.3 3.5 1.0 15 Commercial banks and affiliates 5 Current surplus............................. 2.1 2.5 2.8 3.3 3.7 3.0 3.1 3.2 3.6 3.4 3.5 3.6 3.8 3.8 1 2 Net acquisition of financial assets. . 30.5 20.1 39.9 43.2 16.9 41.0 20.4 25.5 71.9 55.2 10.9 37.0 7.3 12.8 2 3 Total loans and investments.... 29.1 16.8 37.0 39.2 13.7 35.1 19.4 23.5 66.9 47.0 10.1 29.2 6.2 9.9 3 4 Credit market instruments... . 29.0 16.2 35.5 38.0 14.9 35.4 25.1 23.3 52.2 51.2 16.0 27.0 8.7 8.4 4 5 U.S. Government securities6 -2.3 -3.6 9.4 2.8 -11.2 1.3 4.2 -2.2 12.2 -3.1 -15.2 -10.7 -10.3 -8.1 5 6 Direct............................. -3.1 -3.4 6.3 1.7 -9.4 -2.2 3.5 -1 9.8 -4.9 -12.5 — 11.3 -6.1 -7.1 6 7 Agency issues.................. 1.1 * .3 1.1 -.2 1.2 .8 1.3 2.2 -1.6 -.6 -.4 2.1 7 8 Loan partic. certificates.. -.3 -.2 2.9 -1.7 2.2 -.1 -.4 1.1 -.4 -1.1 1.2 -3.7 -3.0 8 9 Other securities & mtg........ 10.6 6.6 14.3 15.7 6.0 16.6 11.7 9.6 18.7 22.7 10.2 9.2 4.4 .1 9 10 State and local obligations 5.1 1.9 9.0 8.7 1.4 10.1 4.9 2.9 12.3 14.7 2.6 4.9 1.0 -2.7 10 11 Corporate bonds............. -.1 .1 .8 .3 -.4 .4 .3 .3 .2 .4 -1.6 11 12 Home mortgages............. 3.1 2.4 2.4 3.5 2.6 3.3 3.3 3.3 3.4 3.9 4.3 3.3 i.7 1.2 12 13 Other mortgages............. 2.5 2.3 2.2 3.2 2.3 2.8 3.2 3.2 2.7 3.6 3.4 2.6 1.8 1.6 13 14 Other credit exc. security. . 20.7 13.3 11.7 19.5 20.2 17.5 9.1 15.9 21.4 31.6 21.0 28.5 14.6 16.5 14 15 Consumer credit............. 4.6 2.6 1.8 4.9 3.3 2.3 4.0 3.6 6.0 5.9 3.7 3.7 2.5 3.1 15 16 Bank loans n.e.c.............. 16.6 9.1 7.5 15.7 16.4 12.4 8.0 13.6 16.2 24.9 17.3 24.3 12.2 11.7 16 17 Open market paper......... -.5 1.6 2.4 -1.1 .5 2.8 -2.9 -1.4 -.9 .8 -.1 .5 * 1.6 17 18 Security credit........................ .1 .5 1.5 1.3 -1.2 -.3 -5.6 .2 14.7 -4.2 -5.9 2.2 -2.6 1.4 18 19 Vault cash & mem. bk. reserves. .7 1.9 1.7 2.1 .4 4.3 -.4 .2 2.9 5.8 -.2 3.2 -.8 -.7 19 20 Loans to affiliate banks. .6 1.0 .7 .4 .3 20 21 Miscellaneous assets.... .7 1.4 1.2 1.9 2.3 1.6 1.3 1.1 2.1 2.4 * 4.0 1.5 3.3 21 22 Net increase in liabilities. 29.2 18.9 38.2 41.4 14.9 37.2 19.1 23.8 70.0 52.7 9.2 34.1 5.9 10.6 22 23 Demand deposits, net. 5.6 .3 11.3 9.3 3.3 13.9 -4.4 -2.2 38.3 5.3 -11.3 4.2 .8 17.6 23 24 U.S. Government.. -1.0 -.5 .2 -.2 -.1 1.5 -2.2 -15.7 26.6 -9.6 -6.2 2.3 1.4 1.9 24 25 Other 7.................... 6.6 11.1 9.5 3.4 12.4 -2.2 13.5 11.7 14.9 -5.1 2.0 -.6 15.7 25 26 Time deposits.................. 20.0 13.3 23.8 20.6 -11.0 16.3 16.3 6.2 32.3 27.5 -6.8 -7.9 -21.5 -7.8 26 27 Large negotiable CD’s. 3.8 -.8 4.7 2.5 -12.0 1.3 .9 -5.1 12.0 2.2 -16.7 -15.4 -12.3 -3.5 27 28 Other........................... 16.2 14.0 19.1 18.1 1.0 15.0 15.4 11.3 20.3 25.3 9.9 7.5 -9.2 -4.3 28 29 Commercial paper issues. 4.2 .8 4.2 5.0 6.9 29 30 Bank security issues........ .8 .2 .2 .1 .2 -.1 .1 .3 * -.1 30 31 F.R. float......................... -.4 1.0 1.7 .4 -5.0 6.9 -3.8 -.3 3.2 .6 31 32 Borrowing at F.R. Banks. -.1 1.4 -1.9 .6 .1 .9 .5 .2 -1.6 32 33 Loans from affiliates......... .6 1.0 .7 .4 .3 33 34 Profit tax liabilities........... -.1 -.2 .2 .3 -.3 -.1 .4 -.8 * .6 .3 -.1 34 35 Miscellaneous liabilities8., 3.3 5.0 2.9 10.5 17.5 5.9 4.3 20.9 3.2 13.7 28.2 31.7 17.5 -5.3 35 36 Discrepancy.................................... .4 .8 .7 1.0 1.2 .9 1.1 .4 1.2 .1 1.8 1.0 36 Memo: Amounts included above for un­ consolidated bank affiliates: 37 Net acquisition of financial assets---- 5.1 2.4 7.7 6.6 3.8 37 38 Bank loans n.e.c........................... 3.8 1.4 7.0 6.2 .7 38 39 Loans to affiliate banks............... .6 1.0 .7 .4 .3 39 40 Miscellaneous assets.................... .7 2.8 40 41 Net increase in liabilities.... 5.1 2.4 7.7 6.6 3.8 41 42 Commercial paper issues. 4.2 .8 4.2 5.0 6.9 42 43 Miscellaneous liabilities.. .9 1.6 3.5 1.5 -3.0 43 For notes see p. A-71.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ FLOW OF FUNDS A 71.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Category 1965 1966 1967 1968 1969 IV I II III IV I II III IV Private nonbank financial institutions—Total 1 1 Current surplus............................... 1.4 1.6 1.4 .1 .1 .5 -.4 .8 .1 -.2 -2.4 .7 .5 1.6 1 2 Physical investment (life insurance).. .4 .5 .6 .7 .8 .7 .7 .7 .8 .7 .8 .8 .8 .8 2 3 Net acquisition of financial assets.... 41.3 34.9 44.4 49.0 48.0 39.0 42.2 49.7 58.3 45.7 37.9 56.5 49.6 48.8 3 4 Demand deposits and currency... .3 -.1 1.0 1.0 .3 1.4 -1.4 1.6 2.5 1.3 -1.5 1.0 .1 1.8 4 5 Time deposits (MSB).................. * ♦ * .1 -.1 -.3 .1 .2 -.2 -.2 5 6 Svgs. and loan shares (Cr. union) * -.2 .3 -.2 * -.2 -.1 .5 -.3 -1.0 .3 -.6 -.1 .3 6 7 Credit market instruments........... 39.0 33.2 37.1 44.9 49.3 30.6 45.5 40.8 54.2 39.1 44.1 56.8 53.2 43.9 7 8 U.S. Government securities---- -.1 .4 -.9 1.6 -.5 -2.1 4.1 7.4 4.5 -9.7 -3.1 4.4 -3.3 -.1 8 9 State and local oblig................ -.5 .8 1.2 1.0 1.0 1.6 .9 2.2 .2 .6 .2 .4 2.1 1.0 9 10 Corporate and foreign bonds... 7.4 8.0 11.0 9.4 7.2 8.9 8.8 6.2 14.2 8.5 7.9 8.2 10.8 1.9 10 11 Corporate stocks...................... 5.7 5.9 9.0 9.7 12.8 5.3 5.7 5.9 14.7 12.6 10.2 12.7 13.0 15.4 11 12 Home mortgages...................... 12.0 5.1 8.0 8.6 9.2 9.9 6.7 7.4 8.2 12.0 10.8 11.2 7.4 7.3 12 13 Other mortgages...................... 7.8 6.8 6.8 7.1 6.5 6.6 6.4 6.4 6.9 8.7 6.2 6.5 6.8 6.7 13 14 Consumer credit...................... 3.8 2.9 1.4 3.8 4.2 1.9 3.0 3.9 3.9 4.4 4.4 5.3 3.6 4.3 14 15 Other loans.............................. 2.9 3.3 .6 3.7 9.0 -1.6 9.9 1.5 1.4 2.0 7.6 8.2 12.8 7.4 15 16 Security credit............................. .2 -.1 2.8 2.0 -2.6 5.0 -2.7 6.0 -.2 5.0 -6.3 -.6 -5.2 1.8 16 17 Trade credit................................. .2 .2 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 17 18 Miscellaneous assets.................... 1.7 2.0 2.9 .9 .7 2.2 .5 .4 1.9 1.0 1.1 -.2 1.2 .7 18 19 Net increase in liabilities.................. 40.6 34.7 44.6 48.7 49.3 43.4 42.8 47.4 58.3 46.2 43.2 55.9 51.8 46.3 19 20 Time and savings accounts........... 13.1 7.0 17.0 12.4 8.0 11.9 12.9 12.9 11.5 12.4 13.4 8.5 5.8 4.2 20 21 Insurance and pension reserves. .. 15.7 16.7 18.7 18.2 18.7 18.6 16.4 17.5 19.1 19.6 16.7 18.6 22.2 17.3 21 22 Credit market instruments........... 9.1 6.6 1.7 11.4 17.9 5.8 13.7 10.5 7.7 13.7 15.9 19.7 21.9 14.2 22 23 Finance company bonds.......... 1.9 .8 1.0 .8 1.6 1.1 .9 .8 .7 .9 1.4 2.2 1.4 1.3 23 24 Investment company shares.... 3.1 3.7 2.5 4.7 5.6 2.7 6.7 2.5 4.8 5.0 7.5 4.6 6.0 4.1 24 25 Mtg. loans in process............... * -.9 1.0 .2 * 1.0 .2 .1 -.1 .6 .7 .3 -.4 -.7 25 26 Bank loans n.e.c....................... 2.4 -1.3 -2.1 2.3 2.1 -3.5 1.5 2.8 2.7 2.4 1.0 4.8 .7 2.1 26 27 Other loans.............................. 1.7 4.3 -.7 3.3 8.6 4.5 4.5 4.4 -.5 4.9 5.2 7.7 14.2 7.3 27 28 Finance company paper....... 1.0 3.4 1.8 2.5 4.6 4.2 2.1 3.6 -.5 4.6 2.3 4.6 8.9 2.6 28 29 .7 .9 -2.5 .9 4.0 .3 2.4 .8 * .2 2.9 3.1 5.3 4.8 29 30 Security credit............................. * .6 2.1 2.0 -2.2 1.2 -4.8 1.7 13.7 -2.5 -9.4 1.8 -4.5 3.4 30 31 Taxes payable.............................. .2 * -.1 * .1 -.1 -.1 .1 .1 * .1 * .2 * 31 32 Miscellaneous liabilities............... 2.6 3.8 5.2 4.6 6.9 5.9 4.7 4.6 6.2 3.1 6.6 7.5 6.1 7.2 32 33 Discrepancy.................................... .2 .8 .9 -.9 .6 4.2 -.4 -2.2 -.6 -.4 2.2 -.6 1.9 -1.7 33 Savings and loan associations 1 Net acquisition of financial assets.... 10.2 4.6 9.7 9.3 9.4 8.0 10.7 9.9 8.9 7.6 12.8 10.1 8.2 6.5 1 2 Demand deposits & currency 2... * -.5 -.3 -.4 -.2 -.3 -.4 -.8 -.6 .1 -.1 -.5 * * 2 3 Credit market instruments........... 9.6 4.2 9.2 10.0 10.0 8.2 11.8 11.8 9.0 7.5 12.6 11.7 8.8 6.8 3 4 U.S. Govt, securities................ .5 .4 1.6 .6 .4 -2.2 3.5 3.2 -.2 -3.9 1.9 .4 -.1 -.4 4 5 Home mortgages...................... 7.1 2.9 6.0 7.2 8.0 8.7 6.5 6.5 6.9 8.9 9.1 9.5 7.4 6.1 5 6 Other mortgages...................... 1.9 .9 1.5 2.1 1.5 1.9 1.8 2.0 2.2 2.4 1.7 1.7 1.6 1.2 6 7 Consumer credit...................... .1 * * .1 * -.1 * .1 .1 .1 * .1 * -.1 7 8 Misc. financial trans.................... .6 .9 .8 -.3 -.4 .1 -.7 -1.0 .5 * .3 -1.2 -.6 -.3 8 9 Net increase in liabilities.................. 9.4 4.0 9.3 8.5 8.5 7.5 10.2 9.2 8.4 6.3 12.3 9.1 7.5 5.0 9 10 Savings shares............................. 8.5 3.6 10.7 7.3 4.0 6.5 7.7 7.6 7.2 6.8 8.0 4.6 3.0 .5 10 11 Credit market instruments........... .8 .1 -1.7 1.1 4.1 1.7 2.2 1.2 -.1 1.3 3.2 3.6 5.1 4.6 11 12 Mtg. loans in process............... * -.9 1.0 .2 * 1.0 .2 .1 -.1 .6 .7 .3 -.4 -.7 12 13 Borrowing from FHLB........... .7 .9 -2.5 .9 4.0 .3 2.4 .8 * .2 2.9 3.1 5.3 4.8 13 Mutual savings banks 1 Net acquisition of financial assets3. .. 4.0 2.8 5.4 4.6 3.1 3.4 4.9 4.8 4.5 4.0 4.8 3.5 1.8 2.0 1 2 Credit market instruments........... 3.9 2.7 5.2 4.3 3.0 3.9 4.9 4.3 3.8 4.3 4.9 3.5 1.4 2.3 2 3 U.S. Govt, securities................ -.3 -.5 -.3 -.3 -.5 .2 .2 .6 -.8 -1.1 .3 -.5 -1.0 -.8 3 4 State and local govt, securities.. -.1 -.1 * * * -.1 * -.1 * * * * * * 4 5 Corporate bonds...................... -.1 .3 2.1 1.4 .3 .4 1.7 1.1 1.2 1.6 .8 .8 -.3 -.2 5 6 Corporate stocks...................... .2 * .2 .3 .3 .2 .2 .2 .3 .3 .3 .3 .3 .3 6 7 Home mortgages...................... 2.7 1.6 1.8 1.4 1.4 1.6 1.0 1.2 1.4 2.1 1.6 1.5 1.1 1.3 7 8 Other mortgages...................... 1.4 1.1 1.4 1.4 1.2 1.4 1.2 1.1 1.4 1.7 1.3 1.2 1.0 1.2 8 9 Savings deposits........................... 3.6 2.6 5.1 4.1 2.6 4.2 4.4 4.0 3.4 4.5 3.8 2.7 1.5 2.4 9 10 Miscellaneous liabilities............... .1 * .1 .2 .2 .1 .1 .1 .5 .2 .1 .5 -.1 .3 10 Life insurance companies 1 Net acquisition of financial assets3.. • 8.7 8.3 9.4 9.3 8.9 7.5 9.4 10.1 8.8 9.1 9.1 8.8 9.6 8.2 1 2 Credit market instruments........... 8.2 8.1 8.4 8.6 8.5 7.5 9.5 9.2 7.3 8.5 8.6 8.6 9.6 7.1 2 3 U.S. Govt, securities................ -.4 -.3 -.3 -.2 -.5 -.2 .2 -.6 * -.5 -.9 -.3 -.7 -.3 3 4 State and local obligations.... -.3 -.4 -.1 * .2 .2 * .7 -.7 .2 .2 .1 .5 .2 4 5 Corporate bonds...................... 2.8 2.4 3.8 3.8 1.9 4.9 4.4 3.9 3.0 3.8 2.9 2.7 2.1 -.3 5 6 Corporate stock....................... .7 .3 1.1 1.4 1.6 1.5 1.3 1.5 1.3 1.7 1.9 1.8 1.1 1.7 6 7 Home mortgages...................... 1.1 .6 -.5 -.7 -1.2 -.7 -.6 -.6 -.8 -1.0 -.7 -.6 -.8 -2.7 7 8 Other mortgages...................... 3.8 4.0 3.4 3.2 3.3 3.0 2.7 2.8 3.3 4.0 2.7 2.9 3.2 4.2 8 9 Other loans............................... .6 1.5 1.0 1.1 3.2 -1.2 1.5 1.5 1.3 .2 2.5 2.0 4.2 4.2 9 10 Net increase in liabilities.................. 7.9 7.9 9.0 9.1 9.4 9.4 9.2 9.0 9.0 9.2 10.5 8.1 9.4 9.5 10 11 Life insurance reserves................ 4.7 4.5 4.7 4.6 4.5 4.7 4.6 4.6 4.5 4.5 5.3 3.7 4.5 4.4 11 12 Pension fund reserves.................. 2.1 2.1 2.6 2.9 3.0 2.7 2.8 2.9 3.0 3.0 3.4 2.6 3.0 3.1 12 13 Other liabilities............................ 1.2 1.2 1.8 1.5 1.8 2.0 1.6 1.5 1.5 1.7 1.8 1.9 1.8 1.9 13 719 For notes see p. A- . . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 71.8 FLOW OF FUNDS □ MAY 1970 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Category 1965 1966 1967 1968 1969 IV I II III IV I II III IV Private pension funds 1 Net acquisition of financial assets.. 5.6 6.1 6.7 6.4 6.2 7.0 5.1 6.1 7.0 7.3 3.9 7.0 7.7 6.3 2 Demand deposits and currency * * .4 .3 -.1 1.1 -.8 .7 .8 .6 -1.6 1.6 -.6 .4 3 Credit market instruments....... 5.2 5.5 5.4 5.8 6.2 4.3 5.6 5.1 5.9 6.7 5.7 5.5 8.0 5.6 4 U.S. Govt, securities............ * -.5 -.6 .5 .3 -.8 .7 .5 .1 .7 .5 .1 1.9 -1.5 5 Corporate bonds.................. 1.5 1.9 .9 .7 .5 .5 .9 .7 .7 .3 -.8 .7 1.3 .6 6 Corporate stock.................... 3.1 3.7 5.0 4.7 5.4 4.6 4.0 4.1 5.0 5.7 5.8 4.8 4.5 6.4 7 Mortgages............................ .6 .5 .1 .1 * -.2 * .1 -.1 .2 .1 8 Miscellaneous........................... .3 .6 .1 1.6 .3 .1 -.2 -.1 .4 .3 State and local govt, employee retirement funds 1 Net acquisition of financial assets 3.3 4.0 4.6 4.3 5.0 4.2 3.9 3.9 4.6 4.7 4.1 5.3 7.0 3.5 1 2 Demand deposits and currency... * .1 .1 .1 -.1 .1 .1 * .4 .1 -.2 -.6 .5 -.1 2 3 Credit market instruments......... 3.3 3.8 4.5 4.1 5.0 4.1 3.7 3.9 4.1 4.6 4.2 5.8 6.4 3.5 3 4 U.S. Govt, securities................ .4 .2 * * -.1 -.9 .2 .1 -.4 .3 -1.0 -.4 .4 .5 4 5 Direct................................... .2 .1 -.2 -.4 -.3 -1.0 -.2 -.3 -.9 -.3 -1.3 -.4 * .5 5 6 U.S. Govt, agency sec.......... .2 .1 .2 .4 .2 .1 .4 .4 .4 .5 .3 .1 .4 .1 6 7 State and local obligations....... -.3 -.1 -.1 -.1 -.1 -.1 .1 -.3 * -.2 -.1 -.2 -.1 -.1 7 8 Other cr. mkt. instruments.... 3.2 3.8 4.6 4.1 5.2 5.1 3.3 4.1 4.6 4.5 5.2 6.3 6.1 3.1 8 9 Corporate bonds.................. 2.1 2.5 3.4 2.4 3.0 4.0 1.7 2.5 3.2 2.3 3.6 3.9 3.4 1.1 9 10 Corporate stock.................... .4 .5 .7 1.3 1.8 .8 1.1 1.1 1.3 1.7 1.2 2.0 1.9 2.1 10 11 Mortgages............................. .7 .8 .5 .4 .4 .3 .6 .5 .1 .5 .4 .4 .8 -.1 11 12 Other........................................... .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 12 Other insurance companies 1 Current surplus........................... .5 .1 .2 -.1 -.1 -.1 .1 1 2 Net acquisition of financial assets.. 1.2 2. 2.3 3.4 3.0 2.8 3.2 3.5 2.2 3.0 3.3 3.3 2 3 Demand deposits and currency -.1 * .1 * * * .1 * * -.1 * 3 4 Credit market instruments....... 1.1 1. 2.1 3.0 2.6 2.5 2.8 3.1 1.9 2.7 3.0 2.9 4 5 U.S. Government securities.. # -.7 -.3 -.5 -.3 * -.6 -.4 1.0 -2.1 -.3 5 6 State and local oblig............. .4 1. 1.4 1.0 1.0 1.4 1.0 1.0 .9 .5 1.7 .8 6 7 Corporate bonds.................. .6 .7 1.2 1.1 .7 1.1 1.2 .2 * 3.1 1.0 7 8 Corporate stock.................... .1 .6 l.l 1.0 .7 .7 1.5 1.1 1.2 .3 1.3 8 9 Commercial mortgages......... * * * * * * * * ♦ 9 10 Trade credit............................. .3 .3 .3 .3 •3 .3 .3 .3 .3 10 11 Net increase in liabilities.............. 1.6 1.8 2.1 2.3 2.7 2.2 1.9 2.5 2.7 2.7 2.8 2.8 11 12 Discrepancy................................. .3 .1 .2 -.10 -.3 -.1 -1.0 -1.1 .4 -.4 -.6 -.6 12 Finance companies 1 Net acquisition of financial assets.... 5.4 2.6 .9 5.5 8.1 .9 4.1 7.1 3.0 7.6 4.9 11.1 8.5 8.5 1 2 Demand deposits and currency... .2 .2 .2 .2 .3 .2 .2 .2 .2 .3 .3 .3 .3 .3 2 3 Home mortgages......................... .5 -.6 .4 . 6 .8 .2 -.3 .4 .5 1.9 .7 .8 -.5 2.3 3 4 Consumer credit.......................... 2.6 1.8 .6 2.4 2.6 .8 1.8 2.9 2.4 2.3 2.9 3.2 2.1 3.1 4 5 Other loans (to bus.).................... 2.0 1.2 -.4 2.2 4.3 -.4 2.4 3.6 -.1 3.2 1.0 6.8 6.7 2.7 5 6 Net increase in liabilities.................. 5.2 2.8 .9 5.5 8.2 1.5 4.8 6.9 3.0 7.4 5.1 11.4 10.8 5.5 6 7 Corporate bonds.......................... 1.9 .8 1.0 .8 1.6 1.1 .9 .8 .7 .9 1.4 2.2 1.4 1.3 7 8 Bank loans n.e.c........................... 2.2 -1.4 -2.0 2.3 2.0 -3.9 1.9 2.5 2.8 1.9 1.4 4.6 .5 1.6 8 9 Open market paper...................... 1.0 3.4 1.8 2.5 4.6 4.2 2.1 3.6 -.5 4.6 2.3 4.6 8.9 2.6 9 11 Open-end investment companies 1 Current surplus............................... -1.1 -1.2 -1.4 -2.2 -2.2 -2.3 -2.7 -1.5 -2.2 -2.5 -4.7 -1.6 -1.9 -.7 1 2 Net acquisition of financial assets.... 2.0 2.5 1.1 2.5 3.3 .4 4.0 .9 2.7 2.5 2.8 3.0 4.1 3.4 2 3 Demand deposits and currency... .1 * .2 .1 -.1 .2 -.1 .4 -.2 .3 -.1 —. 1 -.1 * 3 4 Credit market instruments........... 2.0 2.5 .9 2.4 3.4 .1 4.1 .5 2.8 2.2 2.9 3.1 4.1 3.4 4 5 U.S. Govt, securities................ * .6 -.5 .2 -.5 .9 * .5 1.4 -1.0 -.7 .2 -1.3 5 6 Corporate bonds...................... .4 .4 * .4 .2 -.2 -.5 1.0 .4 .9 .5 -.6 .3 6 7 Corporate stocks.................... 1.2 1.0 1.5 1.5 2.5 -1.1 -1.0 2.4 1.0 3.4 -.7 3!l 3.3 4.3 7 8 Open market paper ................ .3 .5 * .3 1.2 .5 5.6 -3.5 * -1.0 3.8 -.4 1.3 .2 8 9 Net stock issues 4........................... 3.1 3.7 2.5 4.7 5.6 2.7 6.7 2.5 4.8 5.0 7.5 4.6 6.0 4.1 9 719 For notes see p. A- . . Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 o FLOW OF FUNDS A 71.9 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1967 1968 1969 Transaction category, or sector 1965 1966 1967 1968 1969 IV I II III IV I II III IV Rest of the world 1 Net U.S. exports............................. 6.9 5.3 5.2 2.5 2.1 3.8 1.9 3.4 3.6 1.2 1.5 1.6 2.6 2.7 1 2 U.S. exports................................. 39.2 43.4 46.2 50.6 55.3 46.7 47.7 50.7 53.4 50.6 47.6 57.1 57.8 58.6 2 3 U.S. imports................................ 32.3 38.1 41.0 48.1 53.2 42.8 45.9 47.3 49.7 49.4 46.1 55.5 55.2 55.9 3 4 Transfer receipts from U.S.............. 2.8 2.8 3.0 2.9 2.7 2.6 2.5 2.8 3.1 3.1 2.4 2.8 2.6 3.0 4 5 Current account balance................. -4.1 -2.4 -2.2 .3 .6 -1.3 .7 -.6 -.6 1.9 1.0 1.2 .3 5 6 Net financial investment................... -3.7 -2.0 -1.1 1.2 3.7 -.6 2.5 .4 -.8 2.8 5.4 5.7 4.0 -.4 6 7 Net acquis, of financial assets....... 1.9 3.3 7.6 8.3 10.1 14.1 8.8 7.0 7.0 10.5 13.8 14.9 12.3 -.6 7 8 Gold......................................... 1.7 .6 1.2 .12 -1.0 4.0 5.4 .1 -.3 -.5 .2 -1.3 • -2.8 8 9 U.S. dem. dep. and currency... .3 -1.0 .6 -.2 .2 .7 .6 -.7 -.7 . —2 .2 • .7 -.2 9 10 Time deposits........................... .6 .8 1.4 * 1.2 1.2 -.7 -.4 1.0 -.1 -.4 -1.4 .7 6.0 10 11 U.S. Government securities---- -.2 -2.4 .21 -.5 -1.1 4.5 -2.0 -4.7 .6 4.2 -6.2 -1.1 3.6 -.5 11 12 Other credit market instr.1. ... -.1 .6 .8 2.8 3.0 * 1.2 2.5 2.5 5.0 4.7 2.4 2.4 2.5 12 13 Other financial assets 2............ -.3 4.7 1.6 5.1 7.7 3.7 4.2 10.2 3.8 2.1 15.3 16.3 4.9 -5.6 13 14 Net increase in liabilities.............. 5.6 5.3 8.7 7.1 6.5 14.7 6.3 6.6 7.8 7.7 8.5 9.3 8.3 -.2 14 15 Official U.S. fgn. exchange 3... .4 * 1.1 2.1 .3 4.8 1.8 .6 2.0 3.7 .4 -A 2.8 -1.9 15 16 Securities.................................. .8 .5 1.3 1.3 1.4 1.4 1.4 .5 1.1 2.0 1.4 1.6 2.0 .5 16 17 Loans 4..................................... 1.9 1.1 2.8 1.7 2.1 1.9 3.0 1.5 1.5 .9 2.7 3.9 .4 1.6 17 18 Other liabilities 5...................... 2.5 3.8 3.5 2.1 2.7 6.6 * 4.0 3.2 1.1 3.8 3.9 3.1 -.3 18 19 Discrepancy $.................................. -.3 -.4 -1.0 -.9 -3.1 -.7 -1.9 -1.0 .2 -.8 -4.4 -4.5 -4.0 .7 19 U.S. gold & net fgn. exchg. held by: 20 Monetary authority..................... -1.3 -.3 -.5 -1.2 -.1 -.8 -6.2 -2.6 1.1 3.1 • -.9 2.0 -1.3 20 21 U.S. Treasury.............................. .1 -.2 .4 2.0 1.4 1.6 2.6 3.2 1.2 1.2 .2 2.1 .8 2.3 21 Notes to Table 4 Households Banking 1 Includes personal trusts and nonprofit organizations. 1 Federal Reserve System plus those Treasury accounts included in 2 Imputed saving associated with growth of government life insurance “Member Bank Reserves, Federal Bank Credit, and Related Items” and retirement reserves. (p. A-4). Excludes Exchange Stabilization Fund, which is in U.S. Govt, 3 From open-end investment companies. accounts. 4 Policy loans, hypothecated deposits, and U.S. Govt, loans to nonprofit 2 Includes F.R. holdings of foreign currencies, which are net in other organizations. F.R. accounts in table mentioned in note 1. 3 Includes vault cash of nonmember banks. Business 4 IMF deposits are net in line 3. 1 Excludes imputed rental income from owner-occupied houses. 3 This section represents a combined statement for commercial banks 2 Change in work in process. plus affiliates not consolidated in bank reports (see lines 37-43 below). 3 After inventory valuation adjustment. Based on balance sheet estimates for last day of quarter. Reported bank 4 Excludes CCC-guaranteed loans, treated as U.S. Govt, purchases on data, as on p. A-19, are frequently for last Wednesday of month or other NIA basis. reporting date. Excludes banks in U.S. possessions. 5 Includes corporate farms. 6 Net change in par value of holdings. 6 Noncorporate net income is treated as payment in full to proprietors 7 Net of F.R. float, shown separately in line 28. in the household sector. Gross saving consists of capital consumption 8 Includes liabilities to foreign branches. allowances plus corporate farm retained profits. 7 Loans from U.S. Govt, and commercial loans from finance companies. Nonbank finance 9 8 I D n i c r l e u c d t e i s n v e e a s r t n m in e g n s t s r a e b ta r i o n a e d d , f i o n r e b i u g s n i n c e u s r s r ; e n s c ee y h n o o l t d e i n 6 g s a , b a o n v d e . unallocated 1 In addition to types shown, inlcudes credit unions, agencies of foreign banks, security brokers and dealers, and banks in possessions. current assets. 2 Excludes deposits at FHLB, which are included in Miscellaneous, I o Commercial paper, commercial loans from finance companies, and line 8. U.S. Govt, loans. 3 Includes cash and other assets, not shown separately. II Includes State and local profit taxes. 4 Includes retained capital gains dividends. Governments 1 Retirement funds are on p. A-71.8. Rest of the world 2 Unified budget basis for all years. Excludes sponsored agencies shown 1 Corporate securities and acceptances. below. 2 Trade credit, direct investment in the United States, bank liabilities to 3 Govt, life insurance, employee retirement, and R.R. retirement foreign branches, deposits at agencies of foreign banks, security credit, programs. and unallocated assets. 4 Securities of sponsored credit agencies only. 3 Includes net IMF position. 5 Mainly nonconvertible foreign currencies and official foreign exchange 4 Bank loans, acceptances, and loans from U.S. Govt. position of Treasury. 5 Trade debt, direct investment abroad, foreign currencies other than in 6 Home loan banks, land banks, intermediate credit banks, banks for line 15, subscriptions to international organizations except IMF, and cooperatives, and Federal National Mortgage Association (before 1969, unidentified liabilities. secondary market operations only). 6 Errors and omissions in U.S. balance of payments statement. NOTE.—1969 year-end amounts outstanding: Tables on assets and liabilities outstanding at the end of 1969 are available on request to the Flow of Funds Section, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ MAY 1970 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1969 Item 1966 1967 1968 1969* I II III IV* Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total1....................... 43,360 46,188 50,594 55,387 11,919 14,254 14,553 14,661 Merchandise............................................................ 29,389 30,681 33,598 36,487 7,478 9,599 9,581 9,829 Military sales.......................................................... 829 1,240 1,427 1,504 414 331 417 341 Transportation........................................................ 2,608 2,775 2,924 3,122 621 819 832 850 Travel...................................................................... 1,590 1,646 1,770 2,052 504 516 523 509 Investment income receipts, private........................ 5,659 6,234 6,934 7,965 1,885 1,917 2,117 2,046 Investment income receipts, Govt........................... 593 638 765 931 232 231 245 224 Other services.......................................................... 2,693 2,973 3,177 3,326 785 841 838 862 Imports of goods and services—Total......................... -38,081 -41,011 -48,078 -53,314 -11,571 -13,964 -13,847 -13,932 Merchandise............................................................ -25,463 -26,821 -32,972 -35,797 -7,579 -9,599 -9,243 -9,376 Military expenditures.............................................. -3,764 -4,378 -4,530 -4,882 -1,204 -1,208 -1,220 -1,249 Transportation........................................................ -2,922 -2,990 -3,248 -3,464 -744 -878 -902 -940 Travel...................................................................... -2,657 -3,195 -3,022 -3,372 -821 -855 -890 -806 Investment income payments.................................. -2,142 -2,362 -2,933 -4,431 -893 -1,087 -1,255 -1,196 Other services.......................................................... -1,133 -1,266 -1,374 -1,369 -330 -337 -337 -365 Balance on goods and services1................................... 5,279 5,177 2,516 2,073 348 290 706 729 Remittances and pensions............................................ -923 -1,196 -1,159 -1,163 -271 -286 -307 -299 1. Balance on goods, services, remittances and pen­ sions ..................................................................... 4,356 3,981 1,357 910 77 4 399 430 2. U.S. Govt, grants and capital flow, net................... -3,444 -4,224 -3,955 -3,866 -793 -1,155 -1,037 -880 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims............. -4,676 -5,227 -5,347 -5,070 -1,118 -1,515 -1,222 -1,216 Scheduled repayments on U.S. Govt, loans........ 803 997 1,123 1,292 281 326 339 347 Nonscheduled repayments and selloffs................ 429 6 269 -87 44 34 3-154 3-11 3. U.S. private capital flow, net.................................. -4,310 -5,655 -5,157 -5,009 -1,357 -2,051 -1,279 -324 Direct investments............................................... -3,639 -3,154 -3,025 -3,060 -928 -1,057 -1,134 58 Foreign securities................................................. -481 -1,266 -1,266 -1,380 -323 -427 -562 -69 Other long-term claims: Reported by banks.......................................... 337 255 358 329 133 31 131 34 Reported by others.......................................... -112 -281 -174 -346 -82 -81 -3 -180 Short-term claims: Reported by banks.......................................... -84 -730 -89 -857 -51 -532 79 -353 Reported by others.......................................... -331 -479 -960 305 -106 15 210 186 4. Foreign capital flow, net, excluding change in liquid assets in U.S..................................................... 2,532 3,360 8,565 3,869 1,638 351 341 1,540 Long-term investments........................................ 2,156 2,411 5,942 3,699 1,709 389 418 1,183 Short-term claims................................................ 269 499 750 48 -76 49 105 -30 Nonliquid claims on U.S. Govt, associated with— Military contracts............................................ 346 64 -137 178 -76 63 -47 238 U.S. Govt, grants and capital................................... -205 -84 2 -12 -4 -8 * * Other specific transactions............................... -12 1 -3 -3 -10 28 -21 -1 Other nonconvertible, nonmarketable, mediumterm U.S. Govt, securities4............................. -49 469 2,010 -41 95 -171 -115 150 5. Errors and unrecorded transactions......................... -489 -1,007 -642 -2,963 -1,239 -1,039 -1,034 348 Balances A. Balance on liquidity basis Seasonally adjusted (=1+2+34-4+5)............... -1,357 -3,544 168 -7,058 -1,675 -3,888 -2,608 1,113 Less' Net seasonal adjustments........................... -407 -72 364 115 Before seasonal adjustment.................................. -1,357 -3,544 168 -7,058 -1,268 -3,816 -2,972 998 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted............................. -1,357 -3,544 168 -7,058 -1,675 -3,888 -2,608 1,113 Plus: Seasonally adjusted change in liquid assets in the U.S. of— Commercial banks abroad............................... 2,697 1,272 3,382 9,272 2,954 4,802 1,298 218 Other private residents of foreign countries... 212 414 374 -437 -22 -145 -143 -127 International and regional organizations other than IMF..................................................... -525 -214 55 -63 -88 82 8 -65 Less: Change in certain nonliquid liabilities to foreign central banks and govts....................... 761 1,346 2,341 -998 37 -375 -518 -142 Balance B, seasonally adjusted............................. 266 -3,418 1,638 2,712 1,132 1,226 -927 1,281 Less' Net seasonal adjustments........................... -579 21 116 442 Before seasonal adjustment.................................. 266 -3,418 1,638 2,712 1,711 1,205 -1,043 839 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 d U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS— Continued (In millions of dollars) 1969 Item 1966 1967 1968 1969* I II III IV* Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis......................... 1,357 3,544 -168 7,058 1,268 3,816 2,972 -998 Change in U.S. official reserve assets (in­ crease, —)........................................................ 568 52 -880 -1,187 -48 -299 -686 -154 Gold................................................................. 571 1,170 1,173 -967 56 -317 -11 -695 Convertible currencies...................................... -540 -1,024 -1,183 814 -73 246 -442 1,083 IMF gold tranche position............................... 537 -94 -870 -1,034 -31 -228 -233 -542 Change in liquid liabilities to all foreign accounts.. 789 3,492 712 8,245 1,316 4,115 3,658 -844 Foreign central banks and govts. : Convertible nonmarketable U.S. Govt. securities 5................................................. -945 455 -10 -163 -25 -10 84 -212 Marketable U.S. Govt, bonds and notes5... -245 48 -379 -79 -3 ♦ -9 -67 Deposits, short-term U.S. Govt, securities, etc............................................................. -582 1,495 -2,707 -274 -1,681 -525 2,173 -241 IMF (gold deposits)......................................... 177 22 -3 -11 1 -3 -9 Commercial banks abroad............................... 2,697 1,272 3,382 9,272 3,134 4,716 1,554 -132 Other private residents of foreign countries---- 212 414 374 -437 -22 -145 -143 -127 International and regional organizations other than IMF..................................................... -525 -214 55 -63 -88 82 8 -65 B. Official reserve transactions.................................... -266 3,418 -1,638 -2,712 -1,711 -1,205 1,043 -839 Change in U.S. official reserve assets (in­ crease, —)........................................................ 568 52 -880 -1,187 -48 -299 -686 -154 Change in liquid liabilities to foreign central banks and govts., and IMF (see detail above under A.).......................................................... -1,595 2,020 -3,099 -527 -1,708 -538 2,239 -520 Change in certain nonliquid liabilities to foreign central banks and govts.: Of U.S. private organizations...................... 793 894 535 -836 -43 -196 -391 -206 Of U.S. Govt................................................ -32 452 1,806 -162 88 -172 -119 41 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) Imports 2 Export surplus Period 1967 1968 1969 1970 1967 1968 1969 1970 1967 1968 1969 1970 Month: Jan... 2,639 2,814 32,086 3,305 2,317 2,687 32,014 3,250 322 127 72 55 Feb... 2.582 2,775 32.295 3,628 2,216 2,592 32,653 3,256 366 184 -358 372 Mar... 2,525 32,439 33,197 3,379 2,166 32,589 32,976 3,214 359 -150 221 165 Apr... 2,608 32,855 33,353 2.198 32,604 33,173 410 251 180 May.. 2,549 2,740 33.296 2,118 2,755 33,276 432 -15 20 June.. 2.582 2,870 33,211 2,184 2,792 33,186 398 78 25 July.. 2,601 2,858 3,169 2,245 2,725 3,066 357 133 103 Aug... 2,566 32,950 3,373 2,145 2,872 3,180 421 78 193 Sept... 2,597 33,211 3,326 2.198 2,951 3,055 399 261 271 Oct.. . 2,415 32,631 3,362 2,254 2,736 3,222 161 -105 140 Nov... 2,671 2,972 3,367 2,396 2,883 3,214 275 89 153 Dec... 2,677 2,977 3,239 2,493 2,908 3,007 184 70 232 Quarter: I....... 7,745 8,028 7,578 10,313 6,698 7,867 7,643 9,719 1,047 161 -65 594 11.... 7,739 8,465 9,860 6,500 8,151 9,635 1,240 314 225 111.... 7,764 9,019 9,867 6,588 8,548 9,301 1,177 471 566 IV.... 7,763 8,580 9,968 7,143 8,527 9,443 620 53 525 Year4... 31,011 34,092 37,274 26,928 33,093 36,022 4,083 1,001 1,252 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus Note.—Bureau of the Census data. Details may not add to totals be­ entries into bonded warehouses. cause of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. GOLD TRANSACTIONS □ MAY 1970 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS $35 (Net sales (—) or net acquisitions; in millions of dollars at per fine troy ounce) 1968 1969 1961 1962 1963 1964 1965 1966 1967 1968 1969 Area and country IV III IV Western Europe: Austria............................. -143 -82 -55 -100 -25 Belgium............................ -144 —63 -40 -83 -58 France............................... -456 —sis -405 -884 -60i 600 325 140 275 Germany, Fed. Rep. of... --23 -225 500 Ireland.............................. -1 -2 -2 -52 41 ” *3 16 Italy.................................. 100 200 -60 -85 -209 -76 Netherlands...................... -25 -60 -35 -19 Spain................................. -156 -146 -130 -32 -180 Switzerland....................... -125 102 -81 -50 -2 -30 -50 -25 United Kingdom.............. -306 -387 ‘”329 618 150 80 -879 -835 15 Bank for Intl. Settlements. -23 200 Other................................ -53 -12 .......i -35 -49 16 -47 1 U7 -7 Total. -754 -1,105 -399 -88 -1,299 -659 -980 -669 969 150 -52 292 Canada............................. 190 200 150 50 Latin American republics: Argentina...................... -90 -30 -39 -25 -25 -10 Brazil............................. -2 72 -3 Colombia...................... 7 Venezuela...................... Other............................. -17 -5 -11 -9 -6 -40 -29 -3 -7 -5 -5 Total. -109 175 32 56 17 -41 -65 -54 -8 -15 Asia: Iraq............... -10 -4 -21 -42 Japan............ -56 Lebanon....... -21 -11 -11 -95 Malaysia....... -34 Philippines... 25 ’“io -1 9 40 17 Saudi Arabia. -13 -50 Singapore.... -81 Other............. ’-47 -i3 -6 -14 -14 -22 -75 Total................ -101 -93 12 3 -24 -86 -44 -366 42 5 10 All other...................... -6 -1 -36 -7 -16 -22 2-166 2-68 -1 -2 -1 Total foreign countries. -970 -833 -392 -36 -1,322 -608 -1,031 -1,118 957 136 316 Intl. Monetary Fund 3. 150 4-225 177 22 -3 10 1 Grand total -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 967 136 317 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 4 Represents the U.S. gold tranche position in the IMF (the U.S* IMF operations. Does not include transactions in gold relating to gold quota minus the holdings of dollars of the IMF), which is the amount deposit or gold investment (see Table 6). that the United States could draw in foreign currencies virtually automati­ cally if needed. Under appropriate conditions, the United States could 2 Positive figures represent purchases from the IMF of currencies of draw additional amounts equal to its quota. other members for equivalent amounts of dollars; negative figures repre­ 5 Includes $259 million gold subscription to the IMF in June 1965 for sent repurchase of dollars, including dollars derived from charges on a U.S. quota increase, which became effective on Feb. 23, 1966. In figures drawings and from other net dollar income of the IMF. The United published by the IMF from June 1965 through Jan. 1966, this gold sub­ States has a commitment to repay drawings within 3 to 5 years, but only scription was included in the U.S. gold stock and excluded from the to the extent that the holdings of dollars of the IMF exceed 75 per cent of reserve position. the U.S. quota. Drawings of dollars by other countries reduce the U.S. commitment to repay by an equivalent amount. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. quota was increased to $4,125 million in 1959 and to $5,160 million in 3 Includes dollars obtained by countries other than the United States Feb. 1966. Under the Articles of Agreement, subscription payments equal from sales of gold to the IMF. 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

MAY 1970 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo e C u c r r r i o e t r e i i e n b s g n ­ l n e ­ p R o e s s i e t r io v n e E m n o d n t o h f Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo e C u c r r i r o e t e r i i e n s b g n 5 ­ l n e ­ p R I o e M s s i i n e t F r i o v 3 e n d S r r i p a g e w h c t i i s n a 6 g l 1957, 24,832 22,857 22,781 1,975 1969--Apr.. 15,948 10,936 10.367 3,624 1,388 1958, 22,540 20,582 20,534 1,958 May. 16,070 11.153 10.367 3,474 1,443 1959, 21,504 19,507 19,456 1,997 June. 16,057 11.153 10.367 3,355 1,549 1960, 19,359 17,804 17,767 1,555 July. . 15,936 11,144 10.367 3,166 1,626 Aug.., 16,195 11.154 10.367 3,399 1,642 1961, 18,753 16,947 16,889 116 1,690 Sept.. 16,743 11,164 10.367 3,797 1,782 1962, 17,220 16,057 15,978 99 1,064 Oct.. . 716,316 11,190 10.367 73,341 1,785 1963, 16,843 15,596 15,513 212 1,035 Nov.. 16,000 11,171 10.367 2,865 1,964 1964, 16,672 15,471 15,388 432 769 Dec.. 16,964 11,859 10.367 2,781 2,324 1965, 15,450 413,806 413,733 781 4863 1970—Jan.. . 17,396 11,882 11.367 2,294 2,321 899 1966, 14,882 13,235 13,159 1,321 326 Feb.. 17,670 11,906 11.367 2,338 2,507 919 1967, 14,830 12,065 11,982 2,345 420 Mar.. 17,350 11,903 11.367 1,950 2,577 920 1968, 15,710 10,892 10.367 3,528 1,290 Apr.. 16,919 11,902 11.367 1,581 2,510 926 1969, 16,964 11,859 10.367 2,781 2,324 1 Includes (a) gold sold to the United States by the International Mon­ June 1965 through Jan. 1966, this gold subscription was included in the etary Fund with the right of repurchase, and (b) gold deposited by the U.S. gold stock and excluded from the reserve position. IMF to mitigate the impact on the U.S. gold stock of foreign purchases 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. for the purpose of making gold subscriptions to the IMF under quota 6 Includes initial allocation by the IMF of $867 million of special draw­ increases. For corresponding liabilities, see Table 6. ing rights on Jan. 1, 1970, plus net transactions in SDR’s since that 2 Includes gold in Exchange Stabilization Fund. time. 3 In accordance with IMF policies the United States has the right to 7 Includes gain of $67 million resulting from revaluation of the German draw foreign currencies equivalent to its reserve position in the IMF vir­ mark in Oct. 1969, of which $13 million represents gain on mark holdings tually automatically if needed. Under appropriate conditions the United at time of revaluation. States could draw additional amounts equal to the U.S. quota. See Table 5. 4 Reserve position includes, and gold stock excludes, $259 million gold Note.—See Table 23 for gold held under earmark at F.R. Banks for subscription to the IMF in June 1965 for a U.S. quota increase which foreign and international accounts. Gold under earmark is not included became effective on Feb. 23, 1966. In figures published by the IMF from in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. transactions with IMF Transactions by re U se .S rv . e other countries Period with IMF p in o s I i M tio F n P s t u a d io y b o n m s o ll c s f a e r r i i n s p n t ­ s by s g N I a o M l e l e d t s F i T t c f i r c o u o a i r r n e n e r s s s i e g a n i 2 n c n ­ ­ I i M d n o c F i l o n la m n rs e e t D d ra o w o ll f i a n r g s3 s R d m o e e i l p n l n a a t r y s s ­ c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. ’*-84* 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1969—Apr.. 1 -68 -67 3,772 73 1,388 May. 1 -56 -55 3,717 72 1,443 June. 5 1 -112 -106 3,611 70 1,549 July.. 2 -79 -77 3,534 68 1,626 Aug.. -36 20 -16 3,518 68 1,642 Sept.. 'ii' -282 122 -140 3,378 65 1,782 Oct.. -9 5 -3 3,375 65 1,785 Nov.. -268 89 -179 3,196 62 1,964 Dec.. -396 32 -360 2,836 55 2,324 1970—Jan.. -33 36 3 2,839 55 2,321 Feb.. 32 -262 42 -186 2,653 51 2,507 Mar.. -178 103 -70 2,583 50 2,577 Apr.. -2 66 67 2,650 51 2,510 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. □ MAY 1970 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreign countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Non­ p E e o r n i f o d d Total Total p G o d s o e i l ­ t d 1 m in G e v o n e l s t d t 2 ­ Total i p S t l i t i o e e h a r s r b o t m i e r r l t e d ­ ­ ­ M b G U a o a o b n . r S v l k d e t . e s , t­ c m T o U a i n r a b b e v r . l S l a k e e e s . e r ­ t t ­ ­ Total i p S t l i t i o e h e a r s r b o t m i e r r l t e d ­ ­ ­ M b G U a o a o b r n .S v l k d e t . e s , t ­ Total i p S t l i t i o e h e a r s r b o t m i e r r l t e d ­ ­ ­ M b G U a o a b o r n .S l v k d e t . e s , t ­ in b a b U n y k . S s . no a t n e d s 4 b a o u n n ry d ds in b a b U n y k . S s . no a t n e d s 4 in b a U b n y . k S s . 6 no a t n e d s 4 notes 1957........... 715,825 200 200 7,917 n.a. n.a. 5,724 n.a. n.a. 542 n.a. 1958........... 716 845 200 200 8,665 n.a. n.a. 5,950 n.a. n.a. 552 n.a. 1959........... 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 19608......... 2 21 0 , , 0 9 2 9 7 4 8 80 00 0 8 80 00 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0, ,2 2 1 1 2 2 8 8 6 7 6 6 7 7, , 5 5 9 9 1 8 7 7, ,0 0 4 4 8 8 5 54 5 3 0 1 1 , , 5 5 4 2 1 5 7 7 5 50 0 7 79 7 1 5 19618......... 2 2 2 2 , , 8 9 5 3 3 6 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 9 4 4 0 0 8 8 9 9 0 0 8 8 , , 2 3 7 5 5 7 7 7, , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 , , 9 9 4 4 8 9 7 7 0 0 3 4 1 1 , , 2 2 4 4 5 5 19628......... [24,068 800 800 12,748 11,997 751 8,359 7,911 448 2,161 1,250 911 124,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 1 0^1 ft [26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 126,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 1 Q£A ft [28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 [29,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965........... 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 11 Q70££080......... r 1 2 2 9 9 , , 9 7 0 7 4 9 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 8 0 0 0 0 1 13 3 , , 6 6 5 0 5 0 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 1 1 4 4 , , 3 2 8 0 7 8 1 13 3 , , 6 85 8 9 0 5 5 2 2 8 8 9 90 0 5 6 5 5 8 8 1 0 3 3 2 2 5 5 1 QA7 8 33,271 1,033 233 800 15,653 14,034 908 711 15,894 15,336 558 691 487 204 [33,119 1,033 233 800 15,646 14.027 908 711 15,763 15,205 558 677 473 204 IlQ70^Oooy......... i [ [ 3 3 3 3 , , 8 6 2 1 1 4 1 1 , , 0 0 3 30 0 2 2 3 3 0 0 8 80 0 0 0 1 1 2 2 , , 4 5 8 4 1 8 1 1 1 1 , ,3 3 1 18 8 5 4 2 6 9 2 7 70 01 1 1 1 9 9, , 3 5 8 1 1 8 1 1 8 8 , , 9 9 0 1 9 6 4 6 6 0 5 9 7 7 2 2 5 2 6 6 8 83 3 4 39 2 1969-Feb... 34,269 1,031 231 800 10,778 9,643 459 676 21,821 21,319 502 639 601 38 Mar... 34,930 1,031 231 800 10,772 9,637 459 676 22,493 21,998 495 634 596 38 Apr... 36,066 1,033 233 800 10,936 9,762 459 715 23,426 22,929 497 671 632 39 May. . 37,673 1,033 233 800 12,434 11,310 459 665 23,487 23,014 473 719 671 48 June.. 39,045 1,028 228 800 10,237 9,112 459 666 27,064 26,608 456 716 668 48 July. . 40,165 1,028 228 800 9,980 8,780 450 750 28,426 27,945 481 731 682 49 Aug... 41,619 1,028 228 800 11,041 9,841 450 750 28,821 28,329 492 729 680 49 Sept... 42,703 1,019 219 800 12,485 11,285 450 750 28,475 27,943 532 724 675 49 Oct... 1043,119 1,019 219 800 1012,690 11,615 333 10742 28,731 28,190 541 679 630 49 Nov... 43,310 1,019 219 800 12,018 11,132 331 555 29,558 29,014 544 715 665 50 Dec... 42,026 1,019 219 800 11,981 11,043 383 555 28,364 27,835 529 662 612 50 1970—Jan.. 42,939 1,019 219 800 12,649 11,837 383 429 28,533 28,002 531 738 688 50 Feb.* 43,300 1,010 210 800 14,004 13,195 380 429 27,466 26,982 484 820 770 50 1 Represents liability on gold deposited by the International Monetary regular monthly reports of securities transactions (see Table 16). Data in­ Fund to mitigate the impact on the U.S. gold stock of foreign purchases cluded on the second line are based on a benchmark survey as of Nov. 30, for the purpose of making gold subscriptions to the IMF under quota in­ 1968, and the monthly transactions reports. For statistical convenience, creases. the new series is introduced as of Dec. 31, 1968, rather than as of the 2 U.S. Govt, obligations at cost value and funds awaiting investment survey date. obtained from proceeds of sales of gold by the IMF to the United States The difference between the two series is believed to arise from errors in to acquire income-earning assets. Upon termination of investment, the reporting during the period between the two benchmark surveys, from same quantity of gold can be reacquired by the IMF. shifts in ownership not involving purchases or sales through U.S. banks 3 Includes Bank for International Settlements and European Fund. and brokers, and from physical transfers of securities to and from abroad. 4 Derived by applying reported transactions to benchmark data; It is not possible to reconcile the two series or to revise figures for earlier breakdown of transactions by type of holder estimated for 1960-63. dates. Includes securities issued by corporations and other agencies of the U.S. Includes $17 million increase in dollar value of foreign currency Govt, that are guaranteed by the United States. liabilities resulting from revaluation of the German mark in Oct. 1969. 5 Principally the International Bank for Reconstruction and Develop­ ment and the Inter-American Development Bank. Note.—Based on Treasury Dept, data and on data reported to the 6 Includes difference between cost value and face value of securities in Treasury Dept, by banks and brokers in the United States. Data correspond IMF gold investment account. Liabilities data reported to the Treasury to statistics following in this section, except for minor rounding differences. include the face value of these securities, but in this table the cost value of Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury the securities is included under “Gold investment.” The difference, which letters of credit and non-negotiable, non-interest-bearing special United amounted to $43 million at the end of 1969, is included in this column. States notes held by other international and regional organizations. 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for The liabilities figures are used by the Dept, of Commerce in the statistics which breakdown by type of holder is not available. measuring the U.S. balance of international payments on the liquidity 8 Data on the two lines shown for this date differ because of changes in basis; however, the balance of payments statistics include certain adjust­ reporting coverage. Figures on the first line are comparable with those ments to Treasury data prior to 1963 and some rounding differences, and shown for the preceding date; figures on the second line are comparable they may differ because revisions of Treasury data have been incorporated with those shown for the following date. at varying times. The table does not include certain nonliquid liabilities 9 Data included on the first line for holdings of marketable U.S. Govt, to foreign official institutions that enter into the calculation of the official securities are based on a July 31, 1963, benchmark survey of holdings and reserve transactions balance by the Dept, of Commerce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a 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 r g i l n es E W u e ro st p e e r n 1 Canada A re m L pu e a b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 15,646 9,872 996 1,131 3,145 249 253 1 Q<G 1 f 12,548 7,009 533 1,354 3,168 259 225 \ 12,481 7,001 532 1,354 3,122 248 224 1969—Feb.......................................................................... 10,778 5,250 512 1,414 3,069 262 271 10,772 5,190 466 1,373 3,206 246 291 Apr.......................................................................... 10,936 5,522 446 1,445 2,951 264 308 May........................................................................ 12,434 7,294 403 1,281 2,904 235 317 10,237 5,298 461 1,248 2,727 232 271 July......................................................................... 9,980 5,132 426 1,292 2,616 238 276 11,041 5,907 451 1,392 2,790 255 246 12,485 7,385 397 1,339 2,875 270 219 412,690 47,400 425 1,485 2,857 322 201 12,018 6,234 446 1,417 3,108 570 243 11,981 5,860 495 1,671 3,190 543 222 1970—Jan........................................................................... 12,649 6,287 600 1,735 3,314 518 195 Feb.*....................................................................... 14,004 7,249 662 1,882 3,333 694 184 1 Includes Bank for International Settlements and European Fund. liabilities resulting from revaluation of the German mark in Oct. 1969. 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ pean dependencies in Latin America. Note.—Data represent short-term liabilities to the official institutions 3 See note 9 to Table 6. of foreign countries, as reported by banks in the United States, and foreign 4 Includes $17 million increase in dollar value of foreign currency official holdings of marketable and convertible nonmarketable U.S. Govt, securities with an original maturity of more than 1 year. 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 Deposits IMF End of period Total i Deposits b T iTl r U l e so a . t S s aa u . ln r d y s O t h e t o r h m r e t r ­ P r f e o a c n y r i u e c n a 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 i c r l c e U l e s a r a . t t S s i e a f u . s i n ­ r d y s l O t i h e a t o r b h m r e . t 3 r ­ Demand Time 2 certifi­ liab.3 cates 1 0£*7 /30,657 30,428 11,747 5,780 9,173 3,727 229 800 487 67 124 178 118 130,505 30,276 11,577 5,775 9,173 3,750 229 800 473 67 120 178 107 1968............................ 31,717 31,081 14,387 5,484 6,797 4,412 636 800 683 68 113 394 108 1969—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 16,743 5,610 5,706 5,479 585 800 632 63 76 225 267 May................. 35,795 35,229 16,638 5,622 7,272 5,697 566 800 671 58 70 236 306 June................. 37,188 36,587 20,132 5,706 4,974 5,775 601 800 668 75 75 214 303 July.................. 38,207 37,763 21,044 5,678 5,070 5,971 445 800 682 59 78 227 318 Aug.................. 39,650 39,192 21,095 5,851 5,858 6,388 458 800 680 54 74 230 321 Sept.................. 40,703 40,287 20,754 6,086 7,052 6,395 416 800 675 61 82 225 307 Oct................... 41,235 40,747 20,987 6,372 6,450 6,938 488 800 630 71 72 234 252 Nov.................. 41,611 41,166 21,690 6,673 5,632 7,171 445 800 665 58 62 291 254 Dec.................. 40,290 39,861 20,689 6,831 5,015 7,326 429 800 612 57 83 244 227 1970—Jan................... 41,327 40,885 20,319 6,824 5,938 7,804 442 800 688 66 103 252 267 Feb.*............... 41,747 41,321 19,397 7,110 6,602 8,212 426 800 770 75 119 317 260 Mar.*............... 41,601 41,200 18,387 7,105 7,230 8,478 401 800 768 81 133 332 221 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. □ MAY 1970 8. SHORTTERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) 7 To residents of foreign countries To official institutions Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r l c e U e l a s r a . t t s S i e a f u s . n i r ­ d y s O l t h i e a t o r h b m r e . t 3 r ­ f r o e c n r i u e n c r i i g ­ e n s Total Dema D n e d posi T ts ime2 T bi r c l c U e l e a s a r . t t S s e a i u f . s n i r ­ d y s O l t h i e t a o r h b m r e . t r 3 ­ c P u f a r o r y r e i e a n n i b g c l i n e es 1967«.......... ( ( 2 29 9 , , 2 3 3 7 2 0 1 1 1 1 , , 5 68 10 0 5 5 , , 6 6 5 5 5 6 8 8 . . 1 1 9 9 5 5 3 3, , 6 6 4 1 3 0 2 2 2 2 9 9 1 14 4 , , 0 0 2 3 7 4 2 2 , , 0 0 5 5 4 4 2 2 , , 4 45 6 8 2 7 7 , , 9 9 8 8 5 5 1 1 , , 3 3 8 7 1 8 1 1 5 52 2 1968............ 30,234 14,320 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 1,321 463 1969—Mar.. 31,635 16,157 5,506 4,364 5,033 574 9,637 2,012 1,876 4,218 1,143 388 Apr.., 32,691 16,680 5,533 4,681 5,212 585 9,762 1,869 1,894 4,531 1,080 388 May., 34,324 16,579 5,552 6,236 5,390 566 11,310 1,793 1,993 6,092 1,045 388 June.. 35,720 20,057 5,630 3,960 5,472 601 9,112 2,037 1,987 3,819 881 388 July.. 36,725 20,985 5,600 4,043 5,653 445 8,780 1,892 1,872 3,872 912 232 Aug.., 38,170 21,040 5,777 4,828 6,067 458 9,841 2,066 1,985 4,671 887 232 Sept.. 39,228 20,692 6,004 6,027 6,088 416 11,285 1,993 2,123 5,895 1,042 232 Oct... 39,805 20,916 6,300 5,416 6,686 488 11,615 1,955 2,436 5,301 1,691 232 Nov.. 40,146 21.632 6,611 4,540 6,917 445 11,132 1,894 2,713 4,421 1,902 202 Dec... 38,878 20.632 6,748 3,971 7,099 429 11,043 1,918 2,940 3,844 2,139 202 1970—Jan.. . 39,839 20,253 6,721 4,885 7,537 442 11,837 1,649 2,944 4,749 2,293 202 Feb.*. 40,177 19,322 6,992 5,485 7,952 426 13,195 1,661 3,244 5,381 2,707 202 Mar.* 40,033 18,305 6,971 6,098 8,257 401 13,923 1,443 3,397 5,989 2,892 202 To banks8 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 s r a . t t s S e i a f u s . n i r ­ d y s O l t i h e a t o r h b m r e . t 3 r ­ Total Dema D n e d posi T ts ime2 T b c i r l c U e e l a r s a . t t s S i e a f u . s n i r ­ d y s O l t h i e a t o r h b m r e . t 3 r ­ f re o c n r u e c r i i ­ g e n s 19676........... \ [1 1 5 5 , , 2 3 0 3 5 6 1 1 1 1 , , 1 00 3 8 2 7 7 , , 9 76 3 3 3 1 1 . . 1 1 4 4 2 2 1 1 2 2 9 9 1 1 , , 9 9 2 73 7 4 4 , , 1 1 2 2 7 0 1 1 . . 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............. 18,916 14,299 10,374 1,273 30 2,621 4,444 1,797 2,199 86 362 173 1969—Mar.. 21,998 17,419 12,394 1,469 42 3,514 4,392 1,751 2,161 104 374 187 Apr... 22,929 18,351 13,048 1,517 40 3,746 4,381 1,763 2,122 110 386 197 May.. 23.014 18,520 13,083 1,487 35 3,915 4,315 1,703 2,072 110 431 179 June.. 26,608 22,109 16,231 1,652 35 4,191 4,286 1,789 1,992 106 400 213 July.. 27,945 23,596 17,413 1,799 54 4,330 4,136 1,679 1,929 116 412 213 Aug.. 28,329 24,031 17,321 1,944 35 4,732 4,072 1,653 1,847 122 448 226 Sept... 27,943 23,692 16,923 2,077 25 4,667 4,067 1,776 1,804 107 379 184 Oct.. . 28,190 23,990 17,250 2,121 22 4,598 3,944 1,711 1,742 93 398 256 Nov.. 29.014 24,912 18,066 2,164 18 4,664 3,859 1,673 1,734 101 351 243 Dec... 27,835 23,670 17,005 1,996 20 4,648 3,939 1,709 1,811 107 312 226 1970—Jan.. . 28,002 23,887 16,907 2,063 21 4,897 3,875 1,698 1,714 116 347 240 Feb.*. 26,982 23,003 15,997 2,092 27 4,887 3,756 1,665 1,656 78 358 223 Mar.*, 26,110 22,084 15,094 1,964 21 5,005 3,827 1,768 1,610 89 361 199 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 certificates of deposit. 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 5 Principally the International Bank for Reconstruction and Develop­ tute contingent liabilities, since they represent essentially the amount of ment and the Inter-American Development Bank. dollars available for drawings from the IMF by other member countries. Includes difference between cost value and face value of securities in Data exclude also U.S. Treasury letters of credit and non-negotiable, non- IMF gold investment account. interest-bearing special U.S. notes held by the Inter-American Develop­ 6 Data on the two lines shown for this date differ because of changes in ment Bank and the International Development Association. reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 1970 Area and country Dec. July Aug. Sept. Oct. Nov. Dec. Jan. | Feb. * Mar.* Europe: 162 192 178 157 248 252 314 299 300 343 Belgium-Luxembourg........................................... 313 488 438 404 445 553 528 583 622 603 Denmark............................................................... 146 136 106 114 125 151 153 178 182 212 176 90 99 98 99 115 120 123 137 129 France................................................................... 1,383 1,330 1,525 1,536 1,527 1,615 1,588 1,553 1,608 1,601 2,640 2,057 2,677 4,235 2,902 2,006 1,381 2,226 2,658 2,680 Greece................................................................... 183 199 201 184 181 201 207 206 191 178 Italy....................................................................... 729 754 797 813 843 733 627 626 741 605 Netherlands.......................................................... 276 329 342 366 738 606 463 581 539 526 448 235 264 175 203 228 341 240 305 281 345 320 326 312 309 311 309 313 289 280 Spain..................................................................... 158 167 155 163 179 164 202 195 226 234 Sweden.................................................................. 453 210 260 209 318 399 412 455 426 381 2,155 1,543 1,606 1,871 1,937 2,010 2,027 1,984 1,966 2,171 Turkey................................................................... 29 23 20 23 35 30 28 31 35 33 United Kingdom................................................... 6,133 13,375 13,315 12,698 11,973 12,699 11,590 11,438 10,826 10,100 33 27 27 37 39 40 37 44 33 42 Other Western Europe1........................................ 357 396 472 628 1,182 1,461 1,528 1,465 1,741 1,935 5 8 7 11 5 10 11 8 6 6 Other Eastern Europe........................................... 48 33 41 43 47 38 50 44 39 39 Total.............................................................. 16,170 21,912 22,858 24,078 23,336 23,623 21,916 22,590 22,869 22,379 Canada..................................................................... 2,797 3,450 3,571 3,386 4,166 3,844 3,991 4,101 3,857 3,613 Latin America: Argentina.............................................................. 479 499 446 429 448 409 416 418 450 450 257 304 293 322 362 402 425 412 452 525 Chile..................................................................... 323 352 366 343 352 349 393 361 385 436 Colombia.............................................................. 249 223 252 244 249 250 258 267 277 295 8 8 8 8 8 8 7 7 7 7 974 759 764 740 791 788 848 891 915 938 Panama................................................................. 154 139 130 125 119 124 129 145 136 134 276 248 231 227 220 218 239 218 215 238 Uruguay................................................................ 149 144 133 125 111 106 111 140 119 120 Venezuela.............................................................. 792 658 725 694 661 635 674 684 673 693 Other Latin American republics........................... 611 553 552 538 536 508 556 551 577 603 Bahamas and Bermuda......................................... 273 945 1,106 1,109 1,444 1,435 1,405 1,583 1,543 1,345 Netherlands Antilles and Surinam........................ 88 93 76 77 72 71 74 79 82 84 Other Latin America............................................. 30 29 32 34 29 42 34 40 36 36 4,664 4,955 5,115 5,014 5,403 5,345 5,571 5,795 5,867 5,905 Asia: China Mainland.................................................... 38 37 38 36 35 37 36 37 39 34 270 220 220 205 217 214 213 196 223 219 281 239 252 257 283 293 260 260 286 330 Indonesia............................................................... 50 66 69 75 63 74 86 78 69 89 215 146 134 138 123 115 146 178 185 152 Japan..................................................................... 3,320 3,373 3,491 3,605 3,640 3,773 3,788 3,628 3,557 3,909 Korea.................................................................... 171 151 158 188 217 231 236 283 308 299 Philippines............................................................ 269 221 232 232 244 225 201 197 250 283 Taiwan.................................................................. 155 185 189 186 182 188 196 215 218 228 Thailand................................................................ 556 530 566 585 561 611 628 653 666 664 Other..................................................................... 628 492 529 541 547 523 606 657 652 758 5,953 5,662 5,878 6,049 6,113 6,284 6,396 6,381 6,453 6,965 Africa: Congo (Kinshasa)................................................. 12 16 50 69 71 86 87 75 109 92 13 17 16 18 18 18 21 21 44 52 South Africa.......................................................... 58 56 59 51 53 54 66 69 91 96 U.A.R. (Egypt)................................................... 18 22 19 19 17 19 23 25 25 22 Other..................................................................... 260 261 254 240 334 533 496 499 587 587 Total.............................................................. 361 373 399 396 492 710 692 689 856 850 Other countries: Australia................................................................ 261 340 320 272 263 311 282 255 244 287 All other................................................................ 28 33 28 32 31 29 29 28 30 32 Total.............................................................. 289 373 349 305 294 340 311 283 274 319 Total foreign countries............................................. 30,234 36,725 38,170 39,228 39,805 40,146 38,878 39,839 40,177 40,033 International and regional: International2........................................................ 1,372 1,328 1,321 1,311 1,277 1,316 1,260 1,307 1,365 1,366 Latin American regional....................................... 78 118 116 114 106 99 100 116 117 109 33 36 43 50 47 50 52 65 88 93 Total.............................................................. 1,483 1,482 1,480 1,475 1,430 1,465 1,412 1,488 1,570 1,568 Grand total.................................................... 31,717 38,207 39,650 40,703 41,235 41,611 40,290 41,327 41,747 41,601 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. □ MAY 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. Dec. Apr. Dec, Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus...................................... 2 21 8 2 11 Jordan......................................... 40 7 3 4 17 Iceland...................................... 4 3 6 4 9 Kuwait........................................ 37 34 67 40 46 Ireland, Rep. of....................... 9 15 24 20 38 Laos............................................ 4 4 3 4 3 Luxembourg............................. 31 (5) (5) (5) (5) Lebanon..................................... 113 97 78 82 83 Malaysia..................................... 64 52 52 41 30 Other Latin American republics: Pakistan...................................... 55 54 60 24 35 Bolivia...................................... 60 61 66 65 68 Ryukyu Islands (incl. Okinawa) 14 26 17 20 25 Costa Rica................................ 43 55 51 61 52 Saudi Arabia.............................. 61 70 29 48 106 Dominican Republic............... 55 60 69 59 61 Singapore................................... 160 157 67 40 17 Ecuador................................... 86 64 66 62 74 Syria............................................ 6 7 2 4 4 El Salvador............................... 73 84 82 89 69 Vietnam...................................... 148 123 51 40 94 Guatemala................................ 73 96 86 90 84 Haiti......................................... 16 17 17 18 16 Other Africa: Honduras................................. 30 31 33 37 29 Algeria........................................ 7 8 6 14 Jamaica..................................... 22 44 42 29 16 Ethiopia, (incl. Eritrea)............. 24 23 13 15 20 Nicaragua................................ 46 58 67 78 63 Ghana........................................ 4 13 3 8 10 Paraguay.................................. 13 14 16 18 13 Kenya......................................... 16 20 29 34 43 Trinidad & Tobago................. 9 10 Liberia........................................ 25 26 25 28 18 Libya.......................................... 18 45 69 68 288 Other Latin America: Nigeria........................................ 38 24 20 10 11 British West Indies................. 14 25 25 30 Southern Rhodesia.................... 2 4 1 2 2 Sudan.......................................... 2 2 5 3 3 Other Asia: Tanzania..................................... 20 27 21 23 n.a. Afghanistan............................. 5 6 6 16 Tunisia........................................ 10 2 7 2 6 Burma......................................... 11 17 5 5 2 Uganda...................................... 1 10 6 9 5 Cambodia............................... 2 3 2 2 1 Zambia....................................... 25 21 25 19 17 Ceylon..................................... 5 5 4 5 3 Iran.......................................... 50 38 41 44 35 All other: Iraq.......................................... 35 10 86 77 New Zealand............................. 17 15 17 20 16 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 countries Country or area To End of period Total reg i a n i n o t d i n . al Total O in t f i s f o t i n i c t i s u a ­ l Banks1 fo O r e e t r h i s g e n r ­ A t r i g n e a n­ A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ies 1966............................. 1,494 506 988 913 25 50 234 8 197 140 277 133 1967 2 / 2,546 689 1,858 1,807 15 35 251 234 126 443 218 502 84 { 2,560 698 1,863 1,807 15 40 251 234 126 443 218 502 89 1968............................. 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969—Mar.................. 3,117 777 2,339 2,298 6 36 284 242 221 658 200 608 126 Apr................... 3,058 781 2,277 2,234 6 37 284 205 208 658 202 594 127 May.................. 2,974 776 2,198 2,156 6 36 284 193 189 658 202 561 112 June.................. 2,941 785 2,156 2,102 19 34 284 149 189 658 199 557 120 July................... 2,823 796 2,027 1,962 30 36 207 129 181 658 199 528 125 Aug................... 2,765 812 1,953 1,886 30 37 207 148 154 658 157 508 122 Sept................... 2,676 885 1,790 1,711 43 36 146 130 101 659 117 506 131 Oct.................... 2,534 918 1,616 1,538 43 35 74 123 43 658 117 476 125 Nov................... 2,486 898 1,587 1,506 44 37 69 154 43 658 70 474 119 Dec................... 2,487 886 1,601 1,505 55 41 64 175 41 655 70 471 124 1970—Jan.................... 2,334 869 1,465 1,373 55 37 25 163 6 657 47 446 120 Feb.*................ 2,332 864 1,468 1,373 59 36 25 187 6 657 54 415 122 Mar.*............... 2,311 873 1,438 1,339 61 39 25 192 6 636 49 403 127 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

MAY 1970 □ 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 1970 Area and country Dec. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.* Mar.* Europe: Denmark.......................... 10 9 9 9 9 9 9 9 9 9 9 9 6 6 France............................... 5 5 6 6 6 6 6 6 6 6 6 6 6 6 Netherlands..................... 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Norway............................. 37 37 37 37 37 37 37 37 37 37 37 37 37 37 Sweden............................. 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Switzerland....................... 39 45 45 44 44 44 44 45 42 42 42 42 46 46 United Kingdom.............. 350 370 371 351 334 357 368 406 420 421 407 407 358 350 Other Western Europe---- 33 33 33 33 33 24 24 24 24 24 24 24 24 24 Eastern Europe................ 6 6 6 7 7 7 7 7 7 7 7 7 7 7 Total............................. 488 512 514 494 477 491 502 541 553 553 538 539 491 483 Canada................................. 384 388 388 388 387 389 389 389 271 272 272 271 270 271 Latin America: Latin American republics., 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Neth. Antilles & Surinam 15 15 15 12 12 12 12 12 12 12 12 13 12 12 Other Latin America........ * * * * * * * * * 2 2 2 2 2 Total......................... 17 17 17 14 14 14 14 14 14 15 15 17 15 15 Asia: Japan................................ 9 9 10 10 10 10 10 10 10 10 61 61 62 62 Other Asia....................... 18 18 18 18 18 18 18 19 19 17 18 18 18 18 Total......................... 26 27 28 28 28 28 28 28 29 27 79 79 80 80 Other countries.................... 11 9 9 9 9 9 9 9 7 7 7 7 7 7 Total foreign countries........ 927 954 956 932 915 931 942 982 874 875 912 914 864 856 International and regional: International.................... 25 24 24 32 32 32 32 32 32 32 32 31 31 30 Latin American regional. 13 14 15 15 15 17 17 17 17 18 18 19 19 20 Asian regional................. 1 Total......................... 39 38 39 48 48 49 49 49 50 50 50 50 50 50 Grand total.............. 966 992 995 980 963 980 991 1,031 923 925 962 964 914 906 Note.—Data represent estimated official and private holdings of mar­ year, and are based on a Nov. 30,1968, benchmark survey of holdings and ketable U.S. Govt, securities with an original maturity of more than 1 regular monthly reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total g B iu e m l­ C ad a a n ^ ­ m De a n rk ­ Italy 2 Korea S d w en e­ Tai- T la h n a d i- Total A tr u ia s­ g B iu e m l­ m G a e n r y ­ 3 Italy z S er w la i n t­ d 196 7 1,563 516 314 177 1,047 50 60 601 125 211 196 8 3,330 1,692 32 1,334 20 146 20 100 1,638 50 1,051 226 311 1969—Apr. 3,568 1,666 32 1,334 140 20 100 1,902 50 1,250 226 376 May 3,518 1,666 32 1,334 140 20 100 1.852 50 1,200 226 376 June 3,269 1,416 32 1,084 140 20 100 1.853 50 1,200 226 377 July. 3,352 1,391 32 1,084 140 20 100 1,961 25 1,200 226 511 Aug. 3.251 1.390 32 1,084 140 20 100 1,861 25 1,200 125 511 Sept. 3.251 1.390 32 1,084 139 20 100 1,861 25 1,200 125 511 Oct., 43,372 1,435 32 1,129 139 20 100 41,937 41,301 125 511 Nov. 3.181 1.431 32 1,129 135 20 100 1.750 1.084 125 541 Dec. 3.181 1.431 32 1,129 135 20 100 1.750 1.084 125 541 1970—Jan.. 2,514 1.431 32 1,129 135 20 100 1.083 542 541 Feb.. 2,513 1.431 32 1,129 135 20 100 1.083 542 541 Mar. 2,799 1,717 32 1,429 121 20 100 1.083 542 541 Apr. 2,897 1,814 32 1,529 118 20 100 1.083 542 541 1 Includes bonds issued in 1964 to the Government of Canada in connec­ 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 tion with transactions under the Columbia River treaty. Amounts out­ million equivalent were issued to a group of German commercial banks in standing end of 1967 through Oct. 1968, $ 114 million; end of 1968 through June 1968. The revaluation of the German mark in Oct. 1969 increased Sept. 1969, $84 million; and Oct. 1969 through latest date, $54 million. the dollar value of these notes by $10 million. 2 Bonds issued to the Government of Italy in connection with mili­ 4 Includes an increase in dollar value of $101 million resulting from tary purchases in the United States. revaluation of the German mark in Oct. 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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 1970 Area and country Dec. July Aug. Sept. Oct. Nov. Dec.1 Jan. Feb. p Mar.* Europe: 6 4 4 5 5 6 7 7 20 10 11 Belgium-Luxembourg................................ 40 49 49 53 71 57 56 56 49 53 55 36 34 31 32 40 41 40 40 49 32 36 63 61 65 72 72 72 68 68 66 63 64 66 87 80 92 85 93 107 107 117 94 87 Germany....................................................... 171 158 161 213 200 199 207 207 183 160 197 12 15 18 20 19 17 22 22 17 16 17 105 94 89 101 108 99 120 120 129 123 107 40 39 41 46 54 46 51 51 84 61 50 43 49 40 40 36 38 34 34 34 32 36 Portugal........................................................ 10 9 9 9 9 8 8 8 9 11 13 46 56 49 53 70 68 70 70 73 83 57 58 70 54 71 64 86 67 67 82 95 78 Switzerland................................................... 93 101 110 92 110 131 99 99 124 122 107 38 34 30 32 31 26 19 19 14 15 25 318 355 326 383 425 400 418 408 405 435 418 22 26 26 24 25 25 28 28 29 35 32 Other Western Europe............................... 15 12 12 10 11 11 9 9 7 8 9 U.S.S.R.......................................................... 3 2 1 2 2 2 2 2 2 1 2 Other Eastern Europe................................ 21 27 28 28 25 28 34 34 30 34 43 Total...................................................... 1,205 1,282 1,224 1,377 1,463 1,454 1,466 1,456 1,522 1,483 1,445 533 702 724 634 728 667 818 844 744 740 672 Latin America: 249 284 276 297 306 301 311 311 304 296 292 338 292 309 307 317 318 317 317 296 289 285 Chile............................................................... 193 179 170 177 174 177 188 188 178 195 203 206 218 210 212 215 210 225 225 237 252 249 14 14 13 14 14 14 14 14 14 14 14 948 941 914 836 802 778 801 801 804 807 845 56 58 58 69 61 67 68 68 61 68 61 Peru............................................................... 207 177 171 168 179 173 161 161 173 168 163 Uruguay........................................................ 44 42 43 41 43 46 48 48 49 50 55 Venezuela...................................................... 232 238 239 237 233 228 240 240 250 261 264 Other Latin American republics.................. 280 271 275 271 287 286 295 295 303 307 285- Bahamas and Bermuda.............................. 80 60 76 52 59 48 92 92 62 68 72 Netherlands Antilles and Surinam.......... 19 12 12 13 14 15 14 14 13 14 13 Other Latin America.................................. 22 20 22 21 18 20 27 27 22 22 33 Total...................................................... 2,889 2,806 2,786 2,716 2,722 2,680 2,803 2,804 2,766 2,811 2,835 Asia: China Mainland.......................................... 1 1 1 1 1 1 1 1 1 1 1 32 36 39 36 43 37 36 36 37 37 41 19 9 9 9 8 11 10 10 11 9 9 Indonesia....................................................... 23 38 32 33 25 23 30 30 29 25 68 84 101 99 91 94 101 108 108 101 96 91 3,114 3,147 3,157 3,164 3,071 3,114 3,342 3,372 3,160 3,080 3,216 Korea............................................................ 77 136 138 164 159 160 158 158 167 172 178 239 274 249 242 241 232 216 216 208 255 274 38 37 38 38 39 42 49 49 50 56 55 99 87 89 93 94 97 101 101 99 98 95 Other............................................................. 145 166 165 164 190 205 212 212 208 168 165 Total...................................................... 3,872 4,031 4,015 4,035 3,965 4,023 4,262 4,292 4,070 3,998 4,193 Africa: Congo (Kinshasa)....................................... 3 3 3 3 4 5 6 6 5 5 3 2 3 3 2 3 2 3 3 3 3 4 South Africa................................................ 46 47 44 49 54 56 55 55 53 51 62 U.A.R. (Egypt)............................................ 8 13 13 12 10 11 11 11 10 12 12 73 66 63 69 72 82 86 86 79 63 63 Total...................................................... 133 131 126 135 143 155 162 162 150 136 144 Other countries: 66 59 57 55 57 52 53 53 58 55 60 All other........................................................ 13 13 14 14 14 14 16 16 14 14 13 Total...................................................... 79 71 71 69 70 66 69 69 72 68 73 Total foreign countries.................................. 8,710 9,024 8,946 8,966 9,091 9,045 9,580 9,626 9,324 9,236 9,362 International and regional............................. * 1 1 1 1 1 2 2 1 2 2 Grand total.......................................... 8,711 9,025 .8,947 8,967 9,092 9,046 9,582 9,629 9,325 9,238 9,364 1 Data in the two columns shown for this date differ because of changes on demand or with a contractual maturity of not more than 1 year: loans in reporting coverage. Figures in the first column are comparable in cover­ made to, and acceptances made for, foreigners; drafts drawn against age with those shown for the preceding date; figures in the second column foreigners, where collection is being made by banks and bankers for are comparable with those shown for the following date. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and their customers in the United States. Excludes foreign currencies held Note.—Short-term claims are principally the following items payable by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 □ 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 Loans to- Foreign End of period Total C t o io ll n e s c­ A a c n c c e e p s t ­ Deposits g cu ov ri t t , i e s s e , ­ Total Total O in t f i s f o t i n i c t i s u a ­ l Banks1 Others st o i a n u n g t d ­ ­ f e o o m i r g f a n a f d o e c r r c e s ­ t . Other Total w e i i t g h n e f r o s r­ a n c n o a d m n c f l e i . ­ Other paper 1967 2.......... (8,583 8,158 3,137 306 1,603 1,228 1,511 3.013 498 425 287 74 63 (8,606 8,182 3,150 306 1,616 1,228 1,552 3.013 467 425 287 70 67 196 8 8,711 8,261 3,165 247 1,697 1,221 1.733 2,854 509 450 336 40 73 1969—Mar.. 8,634 8,184 3,206 275 1,781 1,150 1,634 2,777 567 450 267 91 92 Apr.. 8,734 8,225 3,162 289 1,763 1,110 1,723 2,773 565 510 318 94 98 May.. 9,018 8,496 3.208 295 1,855 1,057 1.734 2,900 654 522 291 127 104 June. , 9,222 8,669 3,325 293 1,971 1,061 1,751 3,068 526 553 334 1U 108 July.. 9,025 8,513 3,118 258 1,829 1,030 1,766 3,059 571 512 310 90 113 Aug.. 8,947 8,467 3,072 235 1,819 1,018 1,838 3,015 543 480 272 101 107 Sept.. 8,967 8,472 3,093 212 1,880 1,000 1,860 2,973 546 495 355 51 89 Oct... 9,092 8,573 3,173 263 1,921 990 1,896 2,940 563 520 393 46 80 Nov.. 9,046 8,611 3,204 262 1,944 999 1,928 2,922 556 435 317 45 74 Dec.2 (9,582 9,064 3,282 263 1,946 1.073 1.954 3,169 658 518 355 84 80 I 9,629 9,110 3,279 263 1,943 1.073 1.954 3,202 675 518 355 84 80 1970—Jan... 9,325 8,821 3,261 258 1,986 1,018 1 ,970 3,019 570 504 349 77 78 Feb.*. 9,238 8,772 3.209 269 1,911 1,029 1,992 2,991 580 466 326 61 80 Mar.* 9,364 8,944 3,288 288 1,927 1.073 2,083 3,043 529 420 305 44 71 1 Excludes central banks which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date. reporting coverage. Figures on the first line are comparable in coverage 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo u a r y r i e r n a i e b g n l n e ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u t A n h t l e l r r ies Official Other term cies Total institu­ Banks * foreign­ claims tions ers 1967................... 3,925 3,638 669 323 2,645 272 15 56 720 427 1,556 180 449 537 1968................... 3,567 3,158 528 237 2,393 394 16 68 479 428 1,375 122 617 479 1969—Mar....... 3,434 3,017 485 211 2,321 401 16 67 473 400 1,336 114 571 473 Apr........ 3,435 3,020 474 230 2,316 400 15 66 480 402 1,331 113 577 466 May.... 3,456 3,058 472 236 2,350 381 17 55 489 397 1,353 112 572 478 June------ 3,403 2,980 478 220 2,282 401 22 54 484 398 1,331 101 587 449 July.... 3,255 2,826 446 208 2,173 408 21 54 447 390 1,294 97 570 404 Aug....... 3,289 2,861 504 212 2,145 406 21 56 436 405 1,348 95 551 397 Sept....... 3,272 2,848 485 211 2,151 408 17 55 416 403 1,334 93 562 410 Oct........ 3,278 2,847 493 204 2,149 415 16 56 411 410 1,344 88 568 401 Nov....... 3,267 2,846 494 203 2,147 406 17 55 400 407 1,357 85 571 392 Dec....... 3,230 2,803 500 209 2,094 409 17 55 411 403 1,329 86 567 378 1970—Jan........ 3,173 2,734 460 210 2,063 409 29 55 4t)3 406 1,306 90 557 355 Feb.*... 3,146 2,723 469 203 2,050 391 33 51 401 416 1,296 86 545 351 Mar.*... 3,211 2,793 517 209 2,066 387 31 56 419 406 1,336 87 558 349 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. □ MAY 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 i securities 2 Foreign bonds Foreign stocks Net purchases or sales Period I a n n t d l. Foreign c P ha u s r e ­ s To S t a a l l es c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t e l p e s s u o r r ­ ch P a u s r e ­ s Sales c N h e s a t a s l e e p s s u O r I ­ regional Total Official Other 1968............................... -489 -161 -328 -380 51 17,563 13,329 4,234 2,306 3,686 -1,380 1,252 1,566 -314 1969............................... -4 11 -15 -79 64 15,470 12,795 2,675 1,549 2,572 -1,023 1,509 1,936 -427 1970—Jan.-Mar.*.. .. -55 * -56 -3 -53 3,025 2,837 188 389 692 -303 314 261 52 1969—Mar................... -7 -7 -7 1,269 979 290 244 262 -19 126 125 1 Apr.................... 3 1 2 * 2 1,119 1,018 101 101 209 -108 104 138 -34 May................... -15 9 -24 * -24 1,565 1,335 229 155 149 6 169 254 -85 June................... -17 -17 -17 1,172 1,192 -20 88 202 -115 185 293 — 108 July................... 17 i 16 -9 25 1,058 1,007 51 82 321 -239 117 120 -3 S „A e u p 6e t .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. . .. 4 11 0 * * 4 11 0 4 11 0 1 1 , , 0 0 6 6 1 2 9 9 4 0 1 4 1 1 2 5 0 8 9 7 1 5 2 1 0 4 8 0 -1 -6 1 5 7 1 1 0 0 5 4 2 1 0 0 5 3 -101 2 Oct..................... -108 * -108 -117 9 1,690 1,195 494 157 157 1 130 131 -1 Nov................... 2 1 1 -1 2 1,221 1,074 147 98 168 -70 106 140 -34 Dec.................... 37 * 37 52 -15 1,189 969 220 173 195 -22 107 123 -16 1970—Jan..................... 2 * 2 2 909 902 7 113 170 -57 114 74 40 Feb.p................. -50 * -50 -3 -47 1,025 950 76 109 263 -154 99 76 24 Mar.*............... -8 * -8 * -8 1,090 985 105 168 260 -92 101 112 -11 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S., corpora­ official institutions of foreign countries ; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r­ y N la e n th d e s r­Sw la i n tz 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 1968....................... 2,270 201 169 298 822 -28 130 1,592 386 151 124 2 3 12 1969....................... 1,487 150 216 189 490 -243 292 1,094 125 136 90 7 -1 36 1970—Jan.-Mar.P -97 -3 39 -7 -32 24 -53 -32 -93 11 12 -1 * 6 1969—Mar........... 99 4 18 13 82 -39 33 111 -9 -12 9 * * * Apr............ 74 6 12 * 35 -21 20 51 9 10 3 * * 1 May.......... 156 3 5 22 63 -25 50 118 -1 30 1 * * 8 June.......... -105 -11 12 16 -120 -68 24 -148 15 10 15 * -1 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............ 348 12 41 79 126 -34 22 246 32 58 6 3 * 4 Nov........... 112 1 30 21 37 -12 30 107 -4 5 1 3 ♦ * Dec............ 19 14 12 -13 5 9 13 40 -23 -1 1 * * 2 1970—Jan............. -41 1 11 -5 -24 5 -20 -31 -39 25 3 * * * Feb.*......... -15 9 16 6 19 -3 -14 32 -25 -27 3 * * 1 Mar.p.... -41 -13 11 -8 -26 22 -19 -33 -30 12 6 -1 4c 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 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 e n th d e s r­Sw la i n tz 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 i i n ca Asia Africa co O u t n h t e r r ies I r n e t g l. i o a n n a d l 196 8 1,964 195 253 39 510 522 238 1,757 117 196 9 1,188 105 200 14 169 251 83 822 -1 336 1970—Jan.-Mar.* 285 10 37 78 151 30 94 1969—Ma r 191 33 43 -1 24 9 10 119 -10 -2 102 Apr........... 27 -1 * -2 1 34 3 36 8 6 -32 May......... 74 9 7 4 25 44 1 89 9 7 -34 June......... 85 1 2 * -4 56 -1 53 1 -1 23 July.......... 103 5 39 1 22 8 5 81 -5 * 38 Aug.......... 31 * 24 -1 5 23 2 54 -1 -15 -13 Sept.......... 39 3 27 1 -4 -20 -6 2 5 35 Oct........... 146 4 25 4 9 11 15 68 -6 82 Nov............. 35 4 10 1 6 -13 9 18 1 14 Dec........... 201 42 17 5 26 44 19 154 6 -1 38 1970—Ja..............n 48 1 15 14 2 36 3 -1 Feb.*........ 91 5 13 35 -12 52 -4 37 Mar.*. . . . 146 4 30 9 63 10 58 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 (In millions of dollars) (Amounts outstanding; in millions of dollars) Total Credit Debit Intl. for­ Latin Other End of balances balances Period Total and eign Eu­ Can­ Amer­ Asia Af­ Coun­ period (due to (due from re­ coun­ rope ada ica rica tries foreigners) foreigners) gional tries 1964.......................................... 116 91 1968............................ -1,694 -329 -1,366 7 -945 -300 -96 -39 6 1965.......................................... 158 119 1969............................ -1,450 66-1,516 74-1,122 -101 -380 -6 20 1966.......................................... 175 128 1967.......................................... 311 298 1970—Jan.-Mar.*. . -251 -17 -233 79 -283 -5 -28 -2 5 1968—Mar.............................. 351 269 1969—Mar................ -18 102 -120 22 -20 -60 -46 -6 -11 453 372 Apr................. -142 8 -150 -22 -94 -14 -21 1 468 398 May............... -79 3 -83 -16 -43 2 -26 1 636 508 June............... -223 4 -227 -21 -164 -1 -41 1 July................ -241 -11 -230 -1 -211 -6 -15 3 1969—Mar.............................. 553 393 Aug................ -63 -6 -57 9 -50 -16 -1 — 1 2 566 397 Sept................ -217 -9 -208 16 -131 * -97 3 467 297 Oct.................. * 4 -5 70 -21 -12 -43 -1 434 278 Nov................ -104 3 -107 15 -78 1 -48 1 Dec................. -38 4 -42 -8 -24 7 -30 14 Note.—Data represent the money credit balances and 1970—Jan.................. -18 -2 -16 10 -29 -5 5 2 money debit balances appearing on the books of reporting Feb.*............. -130 -38 -92 33 -109 -5 -13 — i 2 brokers and dealers in the United States, in accounts of Mar.*............. -103 22 -125 36 -146 5 -21 1 1 foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MAY 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; in billions of dollars) 1966 1968—Cont. 1969—Cont. 1969 1970 Maturity of Jan. 26......................1,688 Apr. 24............... 5,020 Nov. 5............... 14,415 liability Feb. 23......................1,902 May 29............... 5,872 12............... 14,369 Dec. Jan. Feb. Mar. 30......................1,879 June 26............... 6,202 19............... 15,048 J A J S M A u u e u p l a n p y g r y e t . . . 2 2 2 2 3 2 8 7 5 1 7 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 3 1 1 2 , , , , , , 9 9 0 4 1 7 5 0 0 3 7 8 1 9 3 4 2 6 J D N D A S O u e e e u o c l p c c y t g v . t . . . . . 2 2 2 2 3 3 3 1 7 8 1 5 5 0 . . . . . . ( . . . . . . . . . . . 1 . . . . . . . . . . . . . / . . . . . . 1 . . . . . . . . . . . . / . . . . . . 6 . . . . . . . . . . . . 9 . . . . . . . . . . . . ) . . . . . . . . . . . . . . . 7 7 7 6 6 6 7 , , , , , , , 1 0 1 1 9 0 0 0 2 0 7 4 3 4 4 0 4 6 9 8 1 Dec. 2 2 3 1 1 6 3 1 . 0 . 4 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 4 4 3 4 4 4 , , , , , , 0 6 4 6 9 8 1 3 3 0 1 0 2 4 4 0 5 3 Ot m i d h n a e o t r e n f l : o t i h a ll b s o i w lit i a i n e f g t s e , r m ca a l r t e e u n p r d i o n a r g r t 8 1 1 . . . 9 4 4 8 0 6 ' ' 7 1 1 . . . 2 9 4 9 1 5 8 1 1 . . . 0 7 9 8 4 0 Oct. 26......................3,671 4.28 r4.93 4.64 Nov. 30......................3,786 1969 3.72 r3.61 3.34 Dec. 28......................4,036 1970 4th............................. 1.11 r1.26 1.60 Jan. 29................ 8,545 1.10 rl. 52 1.30 1967 F M e a b r . . 2 2 6 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 9 , , 8 6 2 2 2 1 Jan. 1 7 . 4 .. ............ 1 1 4 3 , , 3 8 7 4 3 7 6th............................. 1 . . 3 3 3 0 ' ' 1 . . 2 2 0 0 . . 1 7 7 7 J M F a e n a b . r . . 2 2 2 5 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 , , , 6 4 3 5 1 9 3 2 6 J A M u p n a r y e . 2 2 3 5 8 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 9 3 , , , 8 3 2 9 6 6 9 8 9 2 2 1 8 1 1 3 3 , , 8 8 6 6 3 3 1 9 0 t t h h. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 6 5 8 . . . 1 2 1 1 5 0 . . . 2 1 2 1 2 2 A M p a r y . 2 3 6 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . 2 3, , 0 7 4 7 7 6 July 30............... 14,434 Feb. 4............... 13,771 1 1 1 2 t t h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . 0 1 9 5 . . 1 1 8 6 . . 1 17 0 June 28......................3,166 Aug. 6............... 14,177 1 1 13,604 Maturities of more than 1 13............... 14,304 1 8 13,340 year............................... .30 .28 .29 20............... 14,776 2 5 13,403 July 26......................3,660 27............... 14,658 Aug. 30......................3,976 24.72 r24.4224.65 S O N D e c e o p t c v . t . . . 2 2 2 2 5 7 9 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 4, , , , 2 0 3 2 4 5 2 0 1 9 2 6 Sept. 2 1 1 3 4 0 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 4 4 4 4 , , , , 3 9 5 5 4 1 9 7 9 3 9 1 Mar. 2 1 1 4 5 8 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 2 2 2 , , , , 3 9 9 6 5 2 0 7 6 2 4 3 de N po o s t it e s . — an I d n c d l i u r d e e c s t b i o n r t r e o r w es i t n -b g e s a o ri f n a g l l b U r . a S n . ch d e o s l l i a n r the Bahamas and of all other foreign branches 1968 Oct. 1............... 14,118 Apr. 1............... 12,034 for which such deposits and direct borrowings 8................ 14,609 8............... 12,410 amount to $50 million or more. Jan. 31......................4,259 15............... 14,970 1 5 12,213 Details may not add to totals due to rounding. Feb. 28......................4,530 22............... 14,310 2 2 11,999 Mar. 27......................4,920 29............... 13,649 2 9 12,483 Note.—The data represent gross liabilities of reporting banks to their branches in for­ eign 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) (In millions of dollars) Payable in Assets in custody Payable in dollars foreign currencies End of period Deposits End of United U.S. Govt. Earmarked period Total Short­ Short­ King­ Canada securities1 gold Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom ments 1 ments 1 1967............. 135 9,223 13,253 1968.............. 216 9,120 13,066 1967................... 1,163 852 133 128 49 621 309 1969—Apr... 130 8,526 13,128 1968................... 1,638 1,219 87 272 60 979 280 May.. 107 10,035 13,037 June.. 155 7,710 13,039 1969—Feb......... 1,867 1,388 128 243 108 1,099 411 July... 158 7,419 13,050 Mar........ 1,865 1,361 111 261 132 1,065 462 Aug... 143 8,058 13,033 Apr......... 1,833 1,320 125 268 121 1,028 468 Sept... 143 9,252 13,004 May....... 1,949 1,382 104 347 116 1,026 527 Oct... 131 8,447 12,979 June....... 1,787 1,223 123 347 93 957 453 Nov... 130 7,533 12,998 July........ 1,778 1,232 113 313 120 987 450 Dec... 134 7,030 12,311 Aug........ 1,699 1,210 96 293 99 966 410 Sept........ 1,592 1,099 100 303 90 912 360 1970—Jan... 152 7,374 12,291 Oct......... 1,637 1,201 92 279 65 951 381 Feb.. . 313 8,219 12,268 Nov........ 1,671 1,218 95 280 78 970 401 Mar... 200 9,118 12,270 Dec.2 '... ( 1,309 936 123 174 76 610 460 Apr... 204 9,154 12,272 \ 1,401 989 123 214 76 653 464 1970—Jan.'. ... 1,589 1,149 154 219 67 947 390 1 U.S. Treasury bills, certificates of indebtedness, Feb......... 1,594 1,163 163 199 69 1,007 321 notes, and bonds; includes securities payable in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand hel N d ot f e o . r — i E n x te c r l n u a d t e i s o n d a e l po o s r i g ts a n a iz n a d ti o U ns .S . . E G ar o m vt a , rk s e e d c ur g it o ie ld s o ob r l h ig a a v t i i n o g n a w c a o s n t i r n a c c u t r u r a e l d m b a y t u t r h it e y f o o f r e n ig o n t e m r. ore than 1 year from the date on which the 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

MAY 1970 ° 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 Dec. Mar. June Sept. Dec.p Dec. Mar. June Sept. Dec.* Europe: Austria................................................... 3 3 4 4 2 5 5 5 5 5 Belgium-Luxembourg........................... 78 79 67 69 45 49 61 52 58 62 Denmark................................................ 4 2 2 2 2 12 12 12 13 15 Finland.................................................. 4 * * 1 1 9 6 7 6 6 France.................................................... 114 116 121 131 124 145 140 162 149 112 Germany, Fed. Rep. of........................ 120 112 102 119 223 204 143 193 166 280 Greece.................................................... 11 5 5 3 3 27 22 24 26 18 Italy........................................................ 63 57 54 62 82 124 119 148 160 142 Netherlands........................................... 42 49 45 70 65 54 59 62 59 45 Norway.................................................. 4 6 14 9 11 10 12 14 12 14 Portugal................................................. 4 7 7 9 9 7 7 11 15 10 Spain...................................................... 37 40 47 63 56 71 85 81 74 68 Sweden................................................... 25 20 17 22 27 26 25 26 24 27 Switzerland............................................ 116 115 116 130 114 39 49 44 37 33 Turkey.................................................... 5 5 4 2 3 6 13 14 10 11 United Kingdom................................... 393 384 354 401 378 1,221 1,306 1,234 1,199 991 Yugoslavia............................................. 1 1 1 5 1 7 8 14 15 18 Other Western Europe......................... 9 13 17 19 20 16 17 17 16 10 Eastern Europe..................................... 2 2 1 1 1 8 12 12 10 16 Total.............................................. 1,034 1,017 979 1,122 1,165 2,040 2,102 2,132 2,053 1,883 Canada...................................................... 194 164 159 181 197 540 730 713 625 727 Latin America: Argentina.............................................. 6 8 5 6 6 46 45 42 37 46 Brazil...................................................... 16 17 15 12 16 91 90 90 86 78 Chile...................................................... 5 4 4 10 9 36 39 38 37 39 Colombia............................................... 7 7 6 7 6 29 26 27 33 28 Cuba...................................................... * * * * * 2 2 2 2 1 Mexico................................................... 6 7 11 9 13 103 111 112 110 115 Panama.................................................. 3 4 3 5 3 15 14 17 17 18 Peru........................................................ 7 7 8 6 9 26 28 26 28 27 Uruguay................................................ 1 1 1 1 1 6 5 4 5 7 Venezuela.............................................. 33 27 26 22 25 67 60 70 65 56 Other L.A. republics............................. 20 16 18 26 36 82 78 85 82 84 Bahamas and Bermuda......................... 18 19 19 22 21 66 66 38 33 54 Neth. Antilles & Surinam..................... 5 3 2 2 2 6 6 5 5 6 Other Latin America............................ 2 2 2 1 1 9 11 14 17 16 Total............................................... 130 122 121 132 147 584 579 570 557 574 Asia: Hong Kong............................................ 5 4 5 5 5 8 9 11 10 11 India...................................................... 12 15 18 20 18 34 32 40 37 34 Indonesia............................................... 4 5 6 5 4 7 8 7 8 12 Israel...................................................... 17 13 11 12 12 7 12 13 19 31 Japan...................................................... 89 99 114 118 128 207 200 212 220 234 Korea..................................................... 1 2 1 2 2 21 22 24 22 26 Philippines............................................. 9 8 11 10 8 25 25 25 26 31 Taiwan................................................... 5 5 5 6 3 19 19 19 19 19 Thailand................................................ 2 2 2 2 3 16 13 12 12 14 Other Asia............................................. 31 41 50 53 33 134 120 104 111 112 Total............................................... 176 195 223 233 215 478 460 466 485 524 Africa: Congo (Kinshasa)................................. 1 1 2 2 2 2 3 3 3 4 South Africa.......................................... 11 9 14 12 13 31 27 27 25 26 U.A.R. (Egypt)..................................... 5 5 2 7 7 7 7 8 9 9 Other Africa.......................................... 8 14 51 33 26 37 41 43 42 43 Total............................................... 24 29 68 52 48 76 78 81 80 80 Other countries: Australia................................................ 45 44 46 57 60 54 56 53 65 56 All other................................................ 5 5 3 6 2 11 9 7 8 9 Total............................................... 49 50 50 63 61 65 65 60 73 65 International and regional....................... * * * * * 2 2 2 * Grand total.................................... 1,608 1,576 1,601 1,782 1,834 3,784 4,015 4,024 3,874 3,852 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. □ MAY 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 l n l a a b r l s e cu P fo r a r r y e i e n a n i b g c l i n e es Total P d a o y i l n a la 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 in reporter’s Other name 1965 Dec................................................................................... 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 1,028 785 243 2,539 2,146 166 227 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 1,353 1,029 324 2,555 2,116 192 246 1,371 1,027 343 2,946 2,529 201 216 Dec.1................................................................................ 1,386 1,039 347 3,011 2,599 203 209 1968—Mar.................................................................................. 1,358 991 367 3,369 2,936 211 222 June.................................................................................. 1,473 1,056 417 3,855 3,415 210 229 1,678 1,271 407 3,907 3,292 422 193 1,608 1,225 382 3,784 3,175 368 241 1969—Mar................................................................................... 1,576 1,185 391 4,015 3,330 358 327 June.................................................................................. 1,601 1,248 354 4,024 3,283 463 278 Sept................................................................................... 1,782 1,436 346 3,874 3,188 420 267 1,834 1,396 438 3,852 3,189 298 365 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 End of period lia T b o il t i a ti l es 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 c r a Japan O A t s h i e a r Africa o A th l e l r 1965—Dec........................ 147 1,139 31 112 236 209 65 198 98 87 85 18 1966—Mar........................ 176 1,156 27 124 239 208 61 206 98 87 87 19 June....................... 188 1,207 27 167 251 205 61 217 90 90 86 14 Sept........................ 249 1,235 23 174 267 202 64 207 102 91 90 14 Dec......................... 329 1,256 27 198 272 203 56 212 95 93 87 13 1967—Mar........................ 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 1,488 27 257 303 214 88 290 110 98 85 15 Sept........................ 411 1,452 40 212 309 212 84 283 109 103 87 13 Dec........................ 414 1,537 43 257 311 212 85 278 128 117 89 16 Dec.1..................... 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—Mar........................ 582 1,536 41 265 330 206 61 256 128 145 84 21 June....................... 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept........................ 767 1,625 43 313 376 198 62 251 126 142 82 32 Dec........................ 1,103 1,798 147 312 420 194 73 232 128 171 83 38 1969—Mar....................... 1,259 1,880 175 348 433 194 75 224 126 191 72 43 June....................... 1,299 1,961 168 374 447 195 76 217 142 229 72 41 Sept........................ 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec.*..................... 1,667 2,070 152 433 496 53 63 372 141 249 69 42 1 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

MAY 1970 □ MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Ar ( g p e es n o ti ) na (s A ch u i s ll t i r n ia g) B (f e r l a g n iu 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 ro m n a e r ) k ( F m i a n r l k a k n a d ) (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 1969—Apr................................................... .28490 111.24 3.8669 1.9890 92.903 16.678 13.285 23.785 .28490 110.93 3.8646 1.9925 92.837 16.694 13.269 23.785 .28490 111.07 3.8647 1.9868 92.628 16.795 13.282 23.785 .28490 111.11 3.8664 1.9889 92.526 16.785 13.282 23.771 .28490 110.87 3.8668 1.9885 92.743 16.784 13.282 23.785 .28490 110.81 3.8637 1.9869 92.732 16.784 13.287 23.785 .28490 111. 10 3.8644 2.0023 92.762 16.784 13.297 23.773 .28490 111.38 3.8621 2.0121 92.941 16.784 13.334 23.748 .28490 111.43 3.8652 2.0125 93.083 16.772 13.348 23.748 1970—jan ................................................ 328.487 111.58 3.8649 2.0124 93.199 16.772 13.339 23.748 Feb................................................... 28.507 111.77 3.8663 2.0131 93.179 16.772 13.337 23.748 28.504 111.83 3.8663 2.0133 93.212 16.770 13.340 23.748 28.500 111.84 3.8651 2.0127 93.207 16.770 13.325 23.748 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 el u a n n d d ) ( I l t i a r l a y ) J ( a y p en a ) n M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la e il n t d h d e ­ r s ) 1965............................................................. 20.401 25.036 7.0.938 279.59 .16004 .27662 32.609 8.0056 27.774 1966............................................................. 20.352 25.007 416.596 279.30 .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............................................................. 519.302 625.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1969 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................................................. 518.627 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.................................................. 17.907 626.801 13.217 239.02 .15923 .27911 32.659 8.0056 27.804 Nov................................................ 17.928 27.101 13.231 239.63 .15971 .27951 32.661 8.0056 27.748 Dec................................................... 17.952 27.131 13.232 239.73 .15948 .27953 32.481 8.0056 27.622 1970—Jan .................................................. 18.005 27.126 13.239 240.04 .15890 .27948 32.438 8.0056 27.522 Feb................................................... 18.034 27.110 13.248 240.47 .15886 .27950 32.469 8.0056 27.486 Mar.................................................. 18.038 27.225 13.260 240.58 .15897 .27963 32.460 8.0056 27.525 Apr................................................... 18.076 27.459 13.260 240.61 .15895 .27926 32.460 8.0056 27.533 Period (po N un e d w ) Zeal ( a d n o d llar) N (k o r r o w ne a ) y P (e o s r c t u u d g o a ) l A ( S r o a fr u n ic d th a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r w r l a a i n n tz c d ­ ) ( U p K d o n i o u n i m t 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 1.6651 19.358 23.114 279.30 1967............................................................. 276.69 7131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969 ........................................................... 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1969 Apr................................................... 111.35 14.007 3.5036 139.08 1.4271 19.350 23.135 239.31 May.................................................. 111.04 13.999 3.4985 138.69 1.4262 19.337 23.117 238.65 June................................................. 111.18 14.014 3.4989 138.87 1.4260 19.327 23.176 238.95 July.................................................. 111.22 14.005 3.5011 138.92 1.4267 19.337 23.197 239.04 110.99 13.998 3.5031 138.62 1.4277 19.345 23.228 238.53 110.92 13.989 3.5029 138.54 1.4276 19.330 23.265 238.40 Oct................................................... 111.21 13.986 3.5038 138.91 1.4262 19.365 23.229 239.02 Nov.............................................. 111.50 13.989 3.5032 139.26 1.4248 19.354 23.118 239.63 Dec................................................. 111.54 14.000 3.5059 139.32 1.4230 19.352 23.203 239.73 1970—Jan .................................................. 111.69 13.983 3.5096 139.50 1.4247 19.355 23.176 240.04 Feb ................................................ 111.89 13.990 3.5104 139.75 1.4266 19.305 23.257 240.47 Mar................................................. 111.94 14.001 3.5072 139.82 1.4268 19.232 23.202 240.58 Apr................................................. 111.96 14.001 3.5021 139.83 1.4274 19.233 23.244 240.61 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 6 Effective Oct. 26, 1969, the new par value of the deutsche mark was system. The new unit, the dollar, replaces the pound and consists of 100 set at 3.66 per U.S. dollar. cents, equivalent to 10 shillings or one-half the former pound. 7 Effective July 10, 1967, New Zealand adopted the decimal currency 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 system. The new unit, the dollar, replaces the pound and consists of 100 to 4.2 markkaa per U.S. dollar. cents, equivalent to 10 shillings or one-half the former pound. 3 A new Argentine peso, equal to 100 old pesos, was introduced on Jan. 1, 1970. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, 4 Effective June 6, 1966, the Indian rupee was devalued from 4.76 to the following countries devalued their currency in relation to the U.S. 7.5 rupees per U.S. dollar. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. 5 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to Averages of certified noon buying rates in New York for cable transfers. 5.55 francs per U.S. dollar. For description of rates and back data, see “International Finance,” 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 □ MAY 1970 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Apr. 30, 1969 Rate Country 1969 1970 as of Apr. 30, Per Month 1970 cent effective May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr,. 6.0 Dec. 1957 6.0 3.75 Oct. 1967 4.75 5.0 5.0 5.5 Apr. 1969 6.0 7.0 7.5 7.5 22.0 Jan. 1967 20.0 20.0 4.0 Feb. 1962 4.0 7.0 Mar. 1969 7.5 8.0 8.0 5.5 May 1968 5.5 Chile 13.0 Jan. 1969 14.0 14.0 8.0 May 1963 8.0 4.0 June 1966 4.0 7.0 Mar. 1969 9.0 9.0 5.0 Nov. 1956 8.0 8.0 4.0 Aug. 1964 4.0 7.0 Apr. 1962 7.0 6.0 Nov. 1968 7.0 8.0 8.0 Germany Fed. Rep of... 4.0 Apr. 1969 5.0 6.0 7.5 7.5 Ghana ........................... 5.5 Mar. 1968 5.5 Greece ......................... 5.5 Feb. 1969 6.0 6.0 Honduras2 . , . 3.0 Jan. 1962 3 0 Iceland 9.0 Jan. 1966 9.0 India.................................... 5.0 Mar. 1968 5.0 Indonesia . 9.0 Aug. 1963 9.0 Iran....................................... 7.0 Nov. 1968 8.0 8.0 Ireland.................................. 8.38 Apr. 1969 8.5 8.44 8.38 8.25 8.62 8.19 8.19 Israel ................................... 6.0 Feb. 1955 6.0 Italy....................................... 3.5 June 1958 4.0 5.5 5 5 Jamaica................................. 5.5 Mar. 1969 6.0 6.0 Japan.................................... 5.84 Aug. 1968 6.25 6.25 28.0 Dec. 1965 26.0 26.0 Mexico ............................... 4.5 June 1942 4.5 Netherlands.......................... 5.5 Apr. 1969 6.0 6.0 New Zealand........................ 7.0 Mar. 1961 7.0 Nicaragua............................. 6.0 Apr. 1954 6.0 Norway................................ 3.5 Feb. 1955 4.5 4.5 Pakistan................................ 5.0 June 1965 5.0 Peru...................................... 9.5 Nov. 1959 9 5 Philippine Republic............. 8.0 Feb. 1969 10.0 10.0 Portugal................................ 2.75 Jan. 1969 2.75 South Africa......................... 5.5 Aug. 1968 5.5 Spain..................................... 4.5 Nov. 1967 5.5 6.5 6!5 Sweden.................................. 6.0 Feb. 1969 7.0 7.0 Switzerland........................... 3.0 July 1967 3.75 3.75 Taiwan ............................... 11.9 Aug. 1968 10.8 10.8 Thailand............................... 5.0 Oct. 1959 5.0 Tunisia.................................. 5.0 Sept. 1966 5.0 Turkey................................... 7.5 May 1961 7.5 United Arab Rep. (Egypt).. 5.0 May 1962 5.0 United Kingdom.................. 8.0 Feb. 1969 7.5 7.0 7.5 Venezuela............................ 4.5 Dec. 1960 5.5 5.5 1 On June 24, 1962, the bank rate on advances to chartered banks products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent was fixed at 6 per cent. Rates on loans to money market dealers will for rediscounts in excess of an individual bank’s quota; continue to be .25 of 1 per cent above latest weekly Treasury bill tender Costa Rica—5 per cent for paper related to commercial transactions average rate, but will not be more than the bank rate. (rate shown js for agricultural and industrial paper); 2 Rate shown is for advances only. Ecuador—5 per cent for special advances and for bank acceptances for agricultural purposes, 7 per cent for bank acceptances for industrial Note.—Rates shown are mainly those at which the central bank either purposes, and 10 per cent for advances to cover shortages in legal reserves; discounts or makes advances against eligible commercial paper and/or Indonesia— Various rates depending on type of paper, collateral, com­ govt, securities for commercial banks or brokers. For countries with modity involved, etc.; more than one rate applicable to such discounts or advances, the rate Japan—Penalty rates (exceeding the basic rate shown) for borrowings shown is the one at which it is understood the central bank transacts from the central bank in excess of an individual bank’s quota; the largest proportion of its credit operations. Other rates for some Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ of these countries follow: tion, import substitution industries and manufacture of exports; 8 per Argentina—3 and 5 per cent for certain rural and industrial paper, de­ cent for other agricultural, industrial and mining paper; pending on type of transaction; Philippines—6 per cent for financing the production, importation, and dis­ Brazil—8 per cent for secured paper and 4 per cent for certain agricultural tribution of rice and corn and 7.75 per cent for credits to enterprises en­ paper; gaged in export activities. Preferential rates are also granted on credits to Chile—17 percent for forestry paper, preshipment loans and consumer rural banks; and loans, 18 per cent for selective and special rediscounts, 19.5 per cent for Venezuela—2 per cent for rediscounts of certain agricultural paper (Sept. cash position loans, and 23.5 per cent for construction paper beyond a 1962), and 5 per cent for advances against govt, bonds, mortgages, or gold, basic rediscount period. A fluctuating rate applies to paper covering the and 6 per cent for rediscounts of certain industrial paper and on advances acquisition of capital goods. against securities of Venezuelan companies. Colombia—5 per cent for warehouse receipts covering approved lists of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 n 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 t u , h r s y i m Da o d y n a - e y t y o 2 - 3 B a a m a c n n c o c k e n e p e s t r t h , ­ s s ’ 3 T m r b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - a B d ll e a o p n w o k o n a e s n r i s t c s * e D m a o d y n a - e y t y o - 3 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 - 5 3 T r m b e i a o l s l n s u t , h ry 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 e u t n e t 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—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—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 9.59 5.75 7.64 5.95 5.55 4.75 Dec............. 7.78 7.78 8.88 7.70 6.90 6.00 10.38 5.75 8.35 6.00 7.11 4.75 1970—Jan.............. 7.80 7.88 8.88 7.55 6.88 6.00 10.21 5.75 9.09 6.00 6.76 4.75 Feb............. 7.70 7.81 8.88 7.60 7.03 6.00 9.70 5.75 8.48 6.00 7.05 4.75 Mar............ 8.60 7.27 6.97 5.56 7.00 9.55 6.00 7.04 5.00 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 3 B R a a s te ed s h o o n w w n e i e s k l o y n a p v r e i r v a a g t e e s s o ec f u d r a it i i l e y s . closing rates. Se N cti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m t e io n n t a to n d B a b n a k c i k n g d a a n ta d , M se o e n e “ ta In ry te S rn ta a t t i i s o t n ic a s l , 1 F 9 in 62 a . nce,’ 4 Rate in effect at end of month. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date United P d ( r i + e sc m ) o i u o u n r m t inc N en e t t ive Canada P d ( r i e + sc m ) o i u u o n m r t inc N en e t t ive q K ( u i a n o U d g t j . a . S d t o . t i o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) f ( p o - r o ) w u n a o r d n d L ( o f n a o v d f o o r n) qu A i o n t s ed q A uo U d t j . a . S t t . i o o n U S n ta i t t e e s d C S ( a f p n a o r v a e f o d ad r a) C f ( d o a - o n rw ) l a l d a a o r i r n a s d n C ( a fa n o v a f d or a) basis) Canada basis 1969 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 16............. 7.40 7.73 -.33 -.40 -.73 7.80 7.55 7.73 -.18 -.17 -.35 23............. 7.37 7.80 -.43 -.57 -1.00 7.78 7.53 7.80 -.27 -.26 -.53 30.............. 7.37 7.85 -.48 -.39 -.87 7.77 7.52 7.85 -.33 -.48 -.81 Feb. 6............. 7.43 7.50 -.07 -.52 -.59 7.83 7.57 7.50 .07 -.26 -.19 13............. 7.46 7.19 .27 -.55 -.28 7.72 7.47 7.19 .28 -.26 .02 20............. 7.46 6.74 .72 -.42 .30 7.64 7.39 6.74 .65 -.30 .35 27.............. 7.49 6.82 .67 -.64 .03 7.62 7.38 6.82 .56 -.30 .26 Mar. 6.............. 7.27 6.81 .46 -.46 .00 7.55 7.31 6.81 .50 -.22 .28 13............. 7.21 6.70 .51 -.44 .07 7.46 7.22 6.70 .52 -.13 .39 20.............. 7.15 6.56 .59 -.54 .05 7.32 7.09 6.56 .53 + .00 .53 26............. 7.06 6.11 .95 -.53 .42 7.06 6.76 6.11 .65 + .00 .65 Apr. 3.............. 6.96 6.30 .66 -.42 .24 6.97 6.76 6.30 .46 + .04 .50 10............. 6.93 6.31 .62 -.50 .12 6.82 6.61 6.31 .30 + .26 .56 17............. 6.60 6.34 .26 -.39 -.13 6.60 6.40 6.34 .06 + .11 .17 24............. 6.70 6.47 .23 -.28 -.05 6.72 6.52 6.47 .05 + .26 .31 May 1.............. 6.70 6.85 -.15 -.42 -.57 6.75 6.55 6.85 .30 + .17 .13 8.............. 6.66 6.53 .13 | -.31 -.18 6.69 6.49 6.53 .04 + .26 .30 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

A 92 GOLD RESERVES □ MAY 1970 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Intl. Esti­ End of mated Mone­ United mated Afghan­ Argen­ Aus­ Aus­ Bel­ period total tary States rest of istan tina tralia tria gium Brazil Burma Canada Chile world1 Fund world 1963. 42,305 2,312 15,596 24,395 78 208 536 1,371 150 42 817 43 1964. 43,015 2,179 15,471 25,365 71 226 600 1,451 92 84 1,026 43 1965. 243,230 31,869 13,806 27,285 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2,652 13,235 27,300 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 109 257 714 1,524 45 84 863 46 1969—Mar.. 41,050 2,295 10,836 27,920 109 256 714 1.522 45 84 863 46 Apr.. 2,297 10,936 109 255 714 1.522 45 84 863 47 May. 2,301 11.153 109 256 714 1.522 45 84 863 46 June. 40,970 2.257 11.153 27,560 110 258 715 1.522 45 84 866 47 July.. 2,316 11,144 115 258 715 1.522 45 84 866 47 Aug.. 2,336 11.154 120 257 715 1.520 45 84 866 47 Sept.. 40,900 2.258 11,164 27,480 120 257 715 1.520 45 84 872 47 Oct... 2,260 11,190 125 262 715 1.520 45 84 872 47 Nov.. 2,288 11,171 130 263 715 1.518 45 84 872 48 Dec.. *4i‘,6i5' 2,310 11,859 *261845 135 263 715 1.520 45 84 872 47 1970—Jan.... 2,413 11,882 140 263 710 1.518 45 84 870 48 Feb... 2,435 11,906 140 268 714 1.520 84 879 47 Mar.*. 2,512 11,903 269 714 1.520 84 879 Ger­ E pe n r d i o o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 196 3 62 92 61 3,175 3,843 77 247 142 98 18 2,343 289 196 4 58 92 85 3,729 4,248 77 247 141 112 19 2,107 304 196 5 35 97 84 4,706 4,410 78 281 146 110 21 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 23 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 25 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 79 2.923 356 1969—Mar.. 30 114 45 3,827 4.541 132 243 158 193 79 2.924 357 Apr.. 30 114 45 3,726 4.541 131 243 158 193 79 2.924 359 May. 29 88 45 3.551 4.542 130 243 158 193 79 2,926 359 June., 29 89 45 3.552 4.563 130 243 158 193 79 2.937 363 July.. 29 89 45 3.551 4.563 130 243 158 193 79 2,936 363 Aug.. 29 89 45 3.551 4.564 130 243 158 193 69 2.938 363 Sept.. 27 89 45 3.545 4.597 130 243 158 193 64 2.954 371 Oct... 27 89 45 3.547 4.597 130 243 158 193 39 2.954 371 Nov.. 26 89 45 3.547 4,610 130 243 158 193 39 2.956 371 Dec.. . 26 89 45 3.547 4.079 130 243 158 193 39 2.956 413 1970—Jan... 27 89 45 3.546 4.079 130 243 158 151 39 2,976 455 Feb.. . 27 89 45 3.544 4.079 120 243 158 151 38 2.978 469 Mar.* 27 89 45 3.544 4.079 120 243 158 151 38 2.978 469 E pe n r d i o o d f Kuwait a L n e o b n ­ Libya M s a i l a ay­ Mexi- Moroc- N la e n th d e s r- N w o ay r­ P s a ta k n i­ Peru P p h i i n l e ip s ­ Po g r a t l u­ A S r a a u b d i i a 196 3 48 172 7 139 29 1,601 31 53 57 28 497 78 196 4 48 183 17 169 34 1,688 31 53 67 23 523 78 196 5 52 182 68 158 21 1,756 31 53 67 38 576 73 196 6 67 193 68 109 21 1.730 18 53 65 44 643 69 196 7 136 193 68 166 21 1.711 18 53 20 60 699 69 196 8 122 288 85 165 21 1.697 24 54 20 62 856 119 1969—Mar.. 123 288 85 165 21 1.698 24 54 25 65 856 119 Apr.. , 123 288 85 165 21 1.698 24 54 25 67 860 119 May. 120 288 85 165 21 1.698 24 54 25 56 860 119 June., 120 288 85 166 21 1.703 24 54 25 52 860 119 July.. 110 288 85 166 21 1.703 24 54 25 52 860 119 Aug.. 107 288 85 167 21 1.703 24 54 25 45 872 119 Sept.. 103 288 85 168 21 1.711 25 54 25 45 872 119 Oct... 100 288 85 168 21 1.711 25 54 25 45 872 119 Nov.. 86 288 85 172 21 1.711 25 54 25 45 872 119 Dec.., 86 288 85 169 21 1.720 25 54 25 45 876 119 1970—Jan... 86 288 85 169 21 1.720 27 54 25 45 882 119 Feb.. . 86 288 85 21 1.730 27 54 46 882 119 Mar.* 86 288 85 21 1.730 27 54 47 119 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MAY 1970 a GOLD RESERVES AND PRODUCTION A 93 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E p n er d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l l e . ­ ments 4 196 3 630 573 182 2,820 50 104 115 174 2,484 171 401 14 -279 196 4 574 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 196 5 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 196 6 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 196 7 583 785 203 3,089 92 97 93 1,291 140 401 22 -624 196 8 1,243 785 225 2,624 92 97 93 1,474 133 403 50 -349 1969—Mar.., ,367 785 225 2,645 92 97 93 1,476 136 403 50 -284 Apr.. . ,409 785 225 2,644 92 97 93 136 403 50 -286 May. , ,282 785 225 2.643 92 97 93 136 403 50 -282 June.. ,264 785 225 2.643 92 97 93 1,474 136 403 51 -285 July.. ,171 785 225 2.643 92 107 93 136 403 51 -275 Aug.. ,138 785 226 2.642 92 107 93 165 403 51 -268 Sept.. ,093 785 226 2.642 92 107 93 1,459 165 403 50 -285 Oct... ,128 785 226 2.642 92 117 93 165 403 50 -314 Nov.. ,125 785 226 2.642 92 117 93 165 403 50 -309 Dec.. . ,115 784 226 2.642 82 92 117 93 i *47i 165 403 51 -480 1970—Jan... 1,075 784 225 2.659 92 117 93 165 403 51 -488 Feb... 1,035 784 225 2.659 92 117 93 165 404 51 -467 Mar.* 1,002 784 225 2.659 92 124 404 51 -507 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 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ 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 St n a i t t e e s d C a a d n a ­ M ic e o x­ r N a i g c u a a ­ Co b l i o a m­ India P p h i i n l e ip s ­ t A ra u l s ia ­ ot A h l e l r 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 18.5 27.6 63.7 1969*........................... 1.090.7 85.2 7.7 1969—Feb................... 86.7 7.1 .5 .7 .3 1.5 2.0 Mar.................. 89.1 7.6 .6 .7 1.7 2.1 Apr................... 89.3 7.3 .5 .7 1.6 2.4 May................. 90.0 7.4 .4 .7 1.5 2.2 June................. 91.3 7.3 .5 .7 1.5 2.2 July.................. 93.7 6.7 .7 1.9 Aug.................. 93.9 6.6 .7 1.9 Sept,................ 95.1 7.0 .6 2.0 Oct.................. 95.2 6.5 .6 Nov.................. 93.6 6.8 .6 Dec.................. 89.5 7.1 .4 1970—Jan................... 102.5 7.5 Feb................... 88.4 6.5 i 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 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 Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Sherman J. M aisel 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 Jerome W. Shay, Assistant General Counsel Frederic Solomon, Director Robert F. Sanders, Assistant General Counsel **Brenton C. Leavitt, Deputy Director Lawrence F. Noble, Assistant General Counsel Frederick R. Dahl, Assistant Director Pauline B. Heller, Adviser Jack M. Egertson, Assistant Director Janet O. Hart, Assistant Director DIVISION OF RESEARCH AND STATISTICS John N. Lyon, Assistant Director J. Charles Partee, Director Milton W. Schober, Assistant Director Stephen H. Axilrod, Associate Director Thomas A. Sidman, Assistant Director Lyle E. Gramley, Associate Director Stanley J. Sigel, 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 James B. Eckert, Assistant Adviser Joseph E. Kelleher, Director James L. Pierce, Assistant Adviser Donald E. Anderson, Assistant Director Stephen P. Taylor, Assistant Adviser John D. Smith, Assistant Director Louis Weiner, Assistant Adviser Joseph S. Zeisel, Assistant Adviser OFFICE OF THE CONTROLLER John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE Harry J. Halley, Assistant Controller Robert Solomon, Director * Robert L. Sammons, Associate Director John E. Reynolds, Associate Director DIVISION OF DATA PROCESSING John F. L. Ghiardi, Adviser Jerold E. Slocum, Director A. B. Hersey, Adviser John P. Singleton, Associate Director Reed J. Irvine, Adviser Glenn L. Cummins, Assistant Director Samuel I. Katz, Adviser Richard S. Watt, Assistant Director Bernard Norwood, Adviser Ralph C. Wood, Adviser *On leave of absence. Robert F. Gemmill, Associate Adviser ** Currently serving also as Program Director for Samuel Pizer, Associate Adviser Banking Structure in the Office of the Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 95 FEDERAL OPEN MARKET COMMITTEE A rthur F. Burns, Chairman A lfred Hayes, Vice Chairman Aubrey N. H eflin J. L. R obertson Andrew F. Brimmer J. Dewey Daane W. Braddock Hickman W illiam W. S h errill Darryl R. Francis Sherman J. Maisel Eliot J. Swan George W. Mitchell Robert C. Holland, Secretary Arthur L. Broida, Deputy Secretary George Garvy, Associate Economist Kenneth A. Kenyon, Assistant Secretary Lyle E. Gramley, Associate Economist Charles Molony, Assistant Secretary A. B. Hersey, Associate Economist Howard H. Hackley, General Counsel William J. Hocter, Associate Economist David B. Hexter, Assistant General Counsel Homer Jones, Associate Economist J. Charles Partee, Economist James Parthemos, Associate Economist Stephen H. Axilrod, Associate Economist John E. Reynolds, Associate Economist J. Howard Craven, Associate Economist Robert Solomon, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL Philip H. Nason, ninth federal reserve district, President Jack T. Conn, tenth federal reserve district, Vice President Mark C. Wheeler, first federal George S. Craft, sixth federal RESERVE DISTRICT RESERVE DISTRICT John M. Meyer, Jr., second federal Donald M. Graham, seventh federal RESERVE DISTRICT RESERVE DISTRICT George H. Brown, Jr., third federal Allen Morgan, eighth federal RESERVE DISTRICT RESERVE DISTRICT John A. Mayer, fourth federal John E. Gray, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Robert D. H. Harvey, fifth federal A. W. Clausen, twelfth federal RESERVE DISTRICT RESERVE DISTRICT H erbert V. Prochnow, Secretary W illiam 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 Deputy Chairman First Vice President in charge of branch Zip code 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 David Eastburn Bayard L. England David Melnicoff Cleveland......................44101 Albert G. Clay W. Braddock Hickman J. Ward Keener Walter H. MacDonald Cincinnati................45201 Graham E. Marx Fred O. Kiel Pittsburgh................15230 Lawrence E. Walkley Clyde E. Harrell Richmond.....................23213 Wilson H. Elkins Aubrey N. Heflin Robert W. Lawson, Jr. Robert P. Black Baltimore.................21203 Arnold J. Kleff, Jr. H. Lee Boatwright, III Charlotte..................28201 William B. McGuire Edmund F. MacDonald Atlanta..........................30303 Edwin I. Hatch Monroe Kimbrel John C. Wilson Kyle K. Fossum Birmingham............35202 C. Caldwell Marks Dan L. Hendley Jacksonville..............32201 Henry Cragg Edward C. Rainey Nashville..................37203 Robert M. Williams Jeffrey J. Wells New Orleans............70160 Frank G. Smith Arthur H. Kantner Chicago........................60690 Emerson G. Higdon William H. Franklin Ernest T. Baughman 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 Al Pollard John F. Breen Louisville.................40201 Harry M. Young, Jr. Donald L. Henry Memphis..................38101 Alvin Huffman, Jr. Eugene A. Leonard Minneapolis..................55440 Robert F. Leach Hugh D. Galusha, Jr. David M. Lilly M. H. Strothman, Jr. Helena......................59601 Warren B. Jones 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 Re­ serve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. For a more complete list, including periodic releases, see pp. A 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 COM­ or 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 AGRICUL­ the 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 Dec. 31, 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 □ MAY 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 RE­ pp. $.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 sub­ jects 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. THE AVAILABILITY OF MORTGAGE LENDING COM­ MITMENTS, by Robert Moore Fisher. Dec. 1969. A REVISED INDEX OF MANUFACTURING CAPACITY, 36 pp. Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. IMPORTED INFLATION AND THE INTERNATIONAL Nov. 1966. 11 pp. ADJUSTMENT PROCESS, by Ruth Logue. Dec. 1969.147 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS, Staff Economic Study Printed in full in the Bulletin. by Daniel H. Brill, with Ann P. Ulrey. Jan. (Reprints available as shown in following list.) 1967. 14 pp. REPRINTS REVISED SERIES ON COMMERCIAL AND INDUS­ TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. (From Federal Reserve Bulletin unless preceded by an asterisk.) AUTO LOAN CHARACTERISTICS AT MAJOR SALES FINANCE COMPANIES. Feb. 1967. 5 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. 1967. 26 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. MONETARY POLICY AND THE RESIDENTIAL MORT­ 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. SEASONALLY ADJUSTED SERIES FOR BANK 23 pp. 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. 11 pp. MEASURES OF MEMBER BANK RESERVES. July 1963. 14 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 CHANGES IN BANKING STRUCTURE, 1953-62. AND 1963. June 1967. 4 pp. Sept. 1963. 8 pp. REVISED INDEXES OF MANUFACTURING CAPACITY THE OPEN MARKET POLICY PROCESS. Oct. 1963. AND CAPACITY UTILIZATION. July 1967. 3 pp. 11 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON REVISION OF BANK DEBITS AND DEPOSIT TURN­ MEMBER BANKS. July 1967. 6 pp. OVER SERIES. Mar. 1965. 4 pp. 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 □ MAY 1970 THE FEDERAL RESERVE-MIT ECONOMETRIC RECENT TRENDS IN THE U.S. BALANCE OF PAY­ MODEL, Staff Economic Study by Frank de MENTS. Apr. 1969. 18 pp. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. QUARTERLY SURVEY OF CHANGES IN BANK LEND­ THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. ING PRACTICES. Apr. 1969. 5 pp. 1968. 7 pp. BANKING AND MONETARY STATISTICS, 1968. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN Selected series of banking and monetary statis­ 1960-67. Apr. 1968. 23 pp. tics for 1968 only. Mar. and May 1969. 16 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ MONETARY RESTRAINT AND BORROWING AND nomic Study by Frank de Leeuw and Edward CAPITAL SPENDING BY LARGE STATE AND Gramlich. June 1969. 20 pp. LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL BANKS. Aug. 1969. 5 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. 4 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. FEDERAL FISCAL POLICY IN THE 1960's. Sept. 1968. 18 pp. REVISION OF MONEY SUPPLY SERIES. Oct. 1969. 16 pp. HOW DOES MONETARY POLICY AFFECT THE ECONOMY? Staff Economic Study by Maurice BALANCE OF PAYMENTS PROGRAM: REVISED Mann. Oct. 1968. 12 pp. GUIDELINES FOR BANKS AND NONBANK FINAN­ CIAL INSTITUTIONS. Jan. 1970. 11 pp. BUSINESS FINANCING BY BUSINESS FINANCE COMPANIES. Oct. 1968. 13 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ CHANGE OPERATIONS. Mar. 1970. 21 pp. MANUFACTURING CAPACITY: A COMPARISON OF RECENT CHANGES IN STRUCTURE OF COMMER­ TWO SOURCES OF INFORMATION, Staff Eco­ CIAL BANKING. Mar. 1970. 16 pp. nomic Study by Jared J. Enzler. Nov. 1968. 5 pp. U.S. BALANCE OF PAYMENTS AND INVEST­ MENT POSITION. Apr. 1970. 17 pp. MONETARY RESTRAINT, BORROWING, AND CAP­ CHANGES IN TIME AND SAVINGS DEPOSITS, OCTO­ ITAL SPENDING BY SMALL LOCAL GOVERN­ BER 1969-JANUARY 1970. May 1970. 12 pp. MENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. FINANCIAL DEVELOPMENTS IN THE FIRST QUAR­ TER OF 1970. May 1970. 9 pp. REVISION OF CONSUMER CREDIT STATISTICS. SDR’S IN FEDERAL RESERVE OPERATIONS AND Dec. 1968. 21 pp. STATISTICS. May 1970. 4 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. CHANGES IN BANK LENDING PRACTICES, 1969. 7 pp. May 1970. 5 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, 33, 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, 13, 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 Banks, by classes, 19, 25, 30 Federal National Mortgage Assn., 39, 53 Federal Reserve Banks, 12 Federal Reserve Banks: 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, 6,12,15 Commercial and industrial loans: Federal Reserve notes, 12, 16 Commercial banks, 24, 32 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: Loans sold outright, 32 Currency operations, 12, 14, 75, 81 Number, by classes, 19 Deposits in U.S. banks, 5, 12, 18, 25, 29, 86 Real estate mortgages held, by type, 50 Exchange rates, 89 Commercial paper, 33, 37 Trade, 73 Condition statements (See Assets and liabilities) Foreigners: Construction, 62, 63 Claims on, 82, 83, 86, 87, 88 Consumer credit: Liabilities to, 30, 76, 77, 79, 80, 81, 86, 87, 88 Instalment credit, 54, 55, 56, 57 Noninstalment credit, by holder, 55 Gold: Consumer price indexes, 62, 66 Certificates, 12, 16 Consumption expenditures, 68, 69 Earmarked, 86 Corporations: Net purchases by U.S., 74 Sales, profits, taxes, and dividends, 48, 49 Production, 93 Security issues, 46, 47 Reserves of central banks and govts., 92 Security yields and prices, 34, 35 Stock, 4, 18, 75 Cost of living (See Consumer price indexes) Government National Mortgage Association, 53 Currency and coin, 5, 10, 25 Gross national product, 68, 69 Currency in circulation, 5, 16,17 Customer credit, stock market, 36 Hours and earnings, manufacturing industries, 65 Housing permits, 62 Debits to deposit accounts, 15 Housing starts, 63 Debt (See specific types of debt or securities) Demand deposits: Income, national and personal, 68, 69 Adjusted, banks and the monetary system, 18 Industrial production index, 58, 62 Adjusted, commercial banks, 15, 17, 25 Instalment loans, 54, 55, 56, 57 Banks, by classes, 11, 19, 25, 29 Insurance companies, 38, 42, 43, 51 Subject to reserve requirements, 17 Insured commercial banks, 21, 23, 24 Turnover, 15 Interbank deposits, 11, 19, 25 )xedni siht n i dettimo si” A“ xiferp eht hguohtla 39-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si” A“ xiferp eht hguohtla 39-A hguorht 4-A segap o t era secnerefeR( A 102 FEDERAL RESERVE BULLETIN □ MAY 1970 Interest rates: Reserve position, basic, member banks, 8 Business loans by banks, 32 Reserve requirements, member banks, 10 Federal Reserve Bank discount rates, 9 Reserves: Foreign countries, 90, 91 Central banks and govts., 92 Money market rates, 33, 91 Commercial banks, 25, 28, 30 Mortgage yields, 53 Federal Reserve Banks, 12 Prime rate, commercial banks, 33 Member banks, 5, 6, 11, 17, 25 Time deposits, maximum rates, 11 U.S. reserve assets, 75 Yields, bond and stock, 34 Residential mortgage loans, 35, 50, 51, 52 International capital transactions of the U.S., 76-88 Retail credit, 54 International institutions, 74, 75, 90, 92 Retail sales, 62 Inventories, 68 Investment companies, issues and assets, 47 Investments (See also specific types of investments): Sales finance companies, loans, 54, 55, 57 Banks, by classes, 19, 24, 27, 28, 37 Saving: Commercial banks, 23 Flow of funds series, 70 Federal Reserve Banks, 12, 15 National income series, 69 Life insurance companies, 38 Savings and loan assns., 38, 43, 51 Savings and loan assns., 38 Savings deposits (See Time deposits) Savings institutions, principal assets, 37, 38 Labor force, 64 Securities (See also U.S. Govt, securities): Loans (See also specific types of loans): Federally sponsored agencies, 39 Banks, by classes, 19, 24, 26, 27, 37 International transactions, 84, 85 Commercial banks, 19, 23, 24, 26, 27, 31, 32 New issues, 45, 46, 47 Federal Reserve Banks, 4, 6, 12, 15 Silver coin and silver certificates, 16 Insurance companies, 38, 51 Special Drawing Rights, 4, 12, 13, 18, 75 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 Manufacturers: New security issues, 45, 46 Capacity utilization, 62 Ownership of securities of, 24, 28, 37, 38 Production index, 59, 62 Yields and prices of securities, 34, 35 Margin requirements, 10 State member banks, 21, 23 Member banks: Stock market credit, 36 Assets and liabilities, by classes, 19, 24 Stocks: Borrowings at Reserve Banks, 6, 12 New issues, 46, 47 Deposits, by classes, 11 Yields and prices, 34, 35 Number, by classes, 19 Reserve position, basic, 8 Reserve requirements, 10 Tax receipts, Federal, 41 Reserves and related items, 4, 17 Time deposits, 11, 17, 18, 19, 25, 29 Mining, production index, 59, 62 Treasury cash, Treasury currency, 4, 5,16, 18 Mobile home shipments, 63 Treasury deposits, 5, 12, 40 Money rates (See Interest rates) Treasury operating balance, 40 Money supply and related data, 17 Mortgages (See Real estate loans and Residential mort­ gage loans) Unemployment, 64 Mutual funds (See Investment companies) U.S. balance of payments, 72 Mutual savings banks, 18, 29, 37, 42, 43, 50 U.S. Govt, balances: Commercial bank holdings, 25, 29 National banks, 21, 23 Consolidated condition statement, 18 National income, 68, 69 Member bank holdings, 17 National security expenditures, 41, 68 Treasury deposits at Reserve Banks, 5, 12, 40 Nonmember banks, 22, 23, 24, 25 U.S. Govt, securities: Bank holdings, 18, 19, 24, 27, 37, 42, 43 Open market transactions, 14 Dealer transactions, positions, and financing, 44 Federal Reserve Bank holdings, 4, 12, 15,42, 43 Payrolls, manufacturing index, 62 Foreign and international holdings, 12, 81, 84, 86 Personal income, 69 International transactions, 81, 84 Postal Savings System, 18 New issues, gross proceeds, 46 Prices: Open market transactions, 14 Consumer and wholesale commodity, 62, 66 Outstanding, by type of security, 42, 43, 45 Security, 35 Ownership of, 42, 43 Prime rate, commercial banks, 33 Yields and prices, 34, 35, 91 Production, 58, 62 United States notes, 16 Profits, corporate, 48, 49 Utilities, production index, 59, 62 Real estate loans: Veterans Administration, 50, 51, 52, 53 Banks, by classes, 24, 27, 37, 50 Delinquency rates on home mortgages, 52 Weekly reporting banks, 26 Mortgage yields, 53 Type of holder and property mortgaged, 50, 51, 52, 53 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 Minneapolis^ GKicagoj Omafia.* rjnctvnatil Kansas City1^ St.Ixmis Oklahoma. City Dallas ■Houston >an Antonio^ October 16, 1969 ‘Dram by'RW. (jaCvm, Cart 1 ☆ Co THE FEDERAL RESERVE SYSTEM g) * Q HAWAII © L e g e n d Boundaries of Federal Reserve Districts ------Boundaries of Federal Reserve Branch Territories o Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis