Federal Reserve Bulletin, 1970-09

FEDERAL RESERVE BULLETIN » Q Q j G ° ¥ f y » r VXP '• - f ^ L R E s f : SEPTEMBER 1970 BO ARD O F G O V ERN O RS □ TH E FED ER A L RESERV E SYSTEM □ W A SH IN G TO N , D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BUT J FT IN NUMBER 9 □ VOLUME 56 O SEPTEMBER 1970 CONTENTS 667 Recent Price Developments 679 Staff Economic Studies: Summary 681 Changes in Time and Savings Deposits, January-April 1970 691 Treasury and Federal Reserve Foreign Exchange Operations 708 Record of Policy Actions of the Federal Open Market Committee 720 Law Department 739 Announcements 741 National Summary of Business Conditions Financial and Business Statistics A 1 Contents A 3 Guide to Tabular Presentation A 3 Statistical Releases: Reference A 4 U.S. Statistics A 72 International Statistics A 94 Tables Published Periodically A 96 Board of Governors and Staff A 97 Open Market Committee and Staff; Federal Advisory Council A 98 Federal Reserve Banks and Branches A 99 Federal Reserve Board Publications A 103 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony COMMITTEE J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Recent Price Developments THE MOMENTUM of price increases has m oderated in recent m onths as the m ild but prolonged slow dow n in the pace of eco­ nom ic activity has reduced inflationary pressures. The rise in w holesale prices slow ed noticeably after M arch, and the rise in consum er prices was substantially sm aller in June and July than in earlier m onths. A n increase in agricultural m arketings sufficient to cause a dow nturn in farm and food prices contributed to the m oderation of the rise in prices in recent m onths. W holesale prices for agri­ cultural products have declined substantially since M arch, and retail food prices in July w ere below peak levels reached in M ay. Industrial w holesale prices have also risen less rapidly in the last several m onths, reflecting in the m ain less intense dem and for m aterials. A slow er increase in the cost of services and the leveling off in food prices have been the m ost im portant factors contributing to the dim inution of the rise in consum er prices in recent m onths. THE ECONOMIC SETTING D espite the slow er grow th recently in m ajor price indices, the m om entum of inflation rem ains strong. D em and pressures have been reduced, it is true, by fiscal and m onetary restraints intro­ duced in 1968 and 1969, and supplies of industrial com m odities have im proved. H ow ever, cost pressures have only recently begun to ease after intensifying throughout m ost of 1969. O ver-all econom ic activity slow ed last year, but w age in­ creases w ere larger than in 1968. O ther factors also contributed to a faster rise in costs. Excess capacity increased as production Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 Growth in CONSTANT-DOLLAR GNP has slackened; recently price increases have slowed somewhat RATIO SCALE, 1965=100 Constant dollars=1958 prices. GNP: Commerce Dept, data; latest figures, Q2 1970. Industrial production: FRB data; latest figures, August preliminary. Consumer prices and wholesale prices: Dept, of Labor data; latest figures, July and August, respectively. Seasonally adjusted. leveled off or declined, and since m anpow er adjustm ents to the reduced levels of output lagged, w ork forces becam e larger than needed for m axim um efficiency. A s a result gains in w orker pro­ ductivity— w hich had hitherto offset part of the im pact of rising w age rates— cam e to a halt. T hroughout 1969 there w as little if any rise in output per m anhour in the private econom y, and the rise in unit labor costs accelerated. A lso, the rapid expansion in the econom ies of industrial countries abroad brought a rise in the costs of m aterials, especially in the latter part of the year. D uring m uch of the period of grow ing inflation since 1965, cost increases could be passed on in the form of higher prices w ith relative ease. In 1969 prices continued to be pushed up at undim inished rates, but profit m argins w ere sharply reduced by the accelerated rise in costs. Profits before taxes dropped about 12 per cent from the first half of 1969 to the sam e period this year as output declined. In the second quarter of 1970 the pressure of rising costs be­ gan to abate. Productivity show ed a sharp upturn in the A pril- June period, reflecting in part reductions in em ploym ent w hich w ere relatively large com pared w ith declines in output. In m anu­ facturing a reduction in overtim e slow ed increases in average hourly earnings. In industries such as trade and services, w here collective bargaining is less im portant, labor m arkets eased slight­ ly, leading to som ew hat sm aller increases in average hourly earnings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 669 WHOLESALE PRICES The fluctuating pattern of w holesale price changes this year has reflected, in the m ain, swings in farm products and processed foods and feeds, prices of w hich are volatile (C hart 2 ). A ver­ age w holesale prices increased sharply in the first quarter, reflect­ ing in large part gains in livestock, m eat, and other food prod­ ucts, and then rose m ore slowly in the second quarter as these gains w ere reversed. (A tem porary bulge in prices of farm and food products in July w as quickly erased.) The relatively m ore im portant industrial w holesale prices, by contrast, rose at a fairly steady seasonally adjusted annual rate of about 4 per cent in the first half of the year; in July and A ugust, how ever, the rate slackened to less than 3 per cent. Industrial prices. A m ong the early indications of a change in the inflationary clim ate was a leveling off early this year in the L abor D epartm ent’s index of prices of 13 industrial raw m aterials, w hich respond quickly to changes in dem and or supply in w orld m arkets. A lthough industrial production declined after m id-1969, prices of these m aterials advanced strongly until the end of the WHOLESALE PRICES increase less rapidly as drop 1957-59=100 120 100 1970 Dept, of Labor data; latest figures, August. All commodities, farm and food products, and industrials, seasonally adjusted. year as the rate of econom ic expansion stepped up in foreign in­ dustrial countries. By early 1970 production of som e m ajor raw m aterials traded in international m arkets had risen sufficiently to reduce excess dem and, and prices began to level off. In M ay, the industrially im portant nonferrous scrap m etals began to drop in price, and in each of the follow ing 3 m onths the Fed­ eral R eserve index of prices of sensitive industrial m aterials declined. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 Prices of the m uch larger group of the m ore highly processed “interm ediate” m aterials have been slow er to respond to the leveling in econom ic activity. Prices of interm ediate durable m aterials— w hich have advanced m uch faster than nondurable (nonfood) m aterials in the last 2 years— have leveled off recently (C hart 3 ). O n the other hand, prices of nondurable interm ediate products, w hich had increased only about 1 per cent in 1969, have risen faster this year. Prices of FINISHED GOODS still rising despite easing in m aterials prices RATIO SCALE, 1957-59=100 140 RAW MATERIALS/ INTERMEDIATE MATERIALS PRODUCERS' EQUIPMENT, CONSUMER DURABLES Dept, of Labor data; latest figures, August. The relatively slow response of prices of the m ore highly fab­ ricated m aterials, and particularly of finished goods, to a pause in econom ic grow th is attributable in part to the length of tim e required for raw products to pass through the production process. B ut of m ore im portance is the fact that costs of raw m aterials CONSUMER GOODS WHOLESALE PRICES are only a part of the price of m ost products. A s com m odities pass through successive stages of fabrication and distribution, NONDURABLE GOODS: labor costs becom e a larger and larger fraction of the total. Thus, prices of sem ifinished and finished goods tend to follow upw ard trends in unit labor costs even w hen dem and pressures are lessen­ ing. In addition, a drop in dem and for final products often results DURABLE GOODS in an even larger decline in dem and for raw m aterials. Inventory levels m ay be adjusted dow nw ard not only am ong w holesalers and retailers but also at successively earlier stages of fabrication. Dept, of Labor data. A s a consequence cutbacks in orders for prim ary products m ay Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 671 be fairly severe. Thus, stocks of raw m aterials that had seem ed inadequate m ay suddenly appear top-heavy, and prices m ay be­ gin to fall. Metals and metal products. T he w eakening in the m arkets for m etals this year has perhaps been the m ost significant develop­ m ent in industrial prices. M etals and m etal products prices have risen faster than those for other industrial m aterials in the last few years. M oreover, m etals have contributed m ore this year to the increase in the average for industrial com m odity prices as a w hole than any other group. In the first half, m etals and prodducts rose about 4 per cent and accounted for about 40 per cent of the increase in all industrial prices. B ut w hen prices of nonferrous m etal products declined in June and steel m ill prod­ ucts leveled off in A ugust, this helped to slow the average rise in industrial prices. Prices of nonferrous m etals rose about 25 per cent betw een m id-1968 and m id-1970— nearly tw ice as fast as those of steel products— reflecting not only rising dem and at hom e and abroad but also the effect of strikes and other interruptions to produc­ tion. V ariations in supplies of those m etals that m ust be im ported in substantial quantities, such as nickel, antim ony, and copper, have also led to business stockpiling and speculative activity. * INDUSTRY price patterns in 1st half 4 of 1970 varied greatly 1969: tst HALF TOTAL INDUSTRIALS 2nd HALF ■■H 1870; 1st HALF TEXTILES CHEMICALS RUBBER AND PLASTIC LUMBER AND WOOD ----------------------■ ■ ■ ■ METALS MACHINERY AND EQUIPMENT NONMETALLIC 5 -0+ 5 CHANGE FROM PREVIOUS PERIOD, PER CENT Dept, of Labor data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 Prices charged by U .S. producers for copper have continued to advance since m id-1960, clim axed by a rise of about 25 per cent over the past year. Fabricators of copper and brass products de­ pend on dom estic prim ary output for only about half of their supply; the rest com es from scrap and from im ports. In 1969 and early this year, the price of copper in w orld m arkets, m ainly the London M etal Exchange, spurted ahead of the price of copper produced in this country— w idening greatly the spread betw een prices of dom estic and im ported copper. In A pril, w hen the dom estic producers’ ingot price w as about 60 cents per pound, the London price w as over 80 cents. Since that tim e the relation has been sharply reversed; the London price has dropped to a level below the dom estic price for the first tim e in several years, and prices of copper scrap have also fallen. These reductions in prices of m aterials have enabled copper fabricators to low er prices of m ill products during the last few m onths. Thus far, how ever, the U.S. pro­ ducers’ price of unfabricated copper has rem ained unchanged at a level about 25 per cent above a year earlier and 67 per cent above 1965. A lum inum ingot prices began to rise in 1967 as the need for alum inum in aircraft and in building m aterials and as a sub­ stitute for higher priced copper increased. Since early 1969, alu­ m inum prices have been raised three tim es— the last increase w as in A pril 1970. A lthough the present price is 18 per cent above the 1965 level, the ratio of alum inum prices to those of copper has dropped from 68 to 48 per cent during this period. Increased exports of alum inum have helped to m aintain dem and and ship­ m ents this year at a level expected to be alm ost as large as in 1969. The U.S. prim ary producers’ price has been m aintained, and rising rates of residential construction later this year m ay tend to support the m arket for alum inum , and also for copper. Lead and zinc prices w ere reduced late this sum m er after ex­ cessive inventories had led to w idespread discounting, and lead is now below the level of a year ago. N ickel quotations, w hich ad­ vanced nearly one-fourth in late 1969 after the term ination of a 4-m onth strike in C anada, have thus far held steady. Prices of som e other im portant nonferrous m etals have been falling re­ cently from very advanced levels. Steel mill products. T hrough m id-1970 average prices of steel m ill products continued to advance at an annual rate of about 10 per cent. Prices of particular products w ere raised sharply in February, M arch, M ay, June, and July, but in A ugust and early Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 673 Septem ber there was little change— for the first tim e since D ecem ­ ber 1969. Shipm ents of steel have been m aintained in 1970 at a level close to the record levels of a year earlier— in part by an increase in exports relative to im ports; how ever, the balance has recently been shifting the other w ay. N evertheless, steelm akers’ profits declined sharply in the first half of the year. Factors in the decline w ere higher costs of fuel and m aterials— costs of scrap m etals, coal and coke, and alloying m etals w ere up sharply— higher labor costs, and a product m ix of low er profitability. T he increase in w age rates in the steel industry in A ugust was the third under the 1968 contract. In February m ajor steel producers announced a policy of rais­ ing prices of basic steel products only once a year, and by m id­ year they had raised prices on about 90 per cent of shipm ents. In­ creases are still being announced for alloyed steel, tinplate, pig iron, and m any steel m ill products. H ow ever, the over-all price increase for steel products in com ing m onths should be sm aller. O ther m aterials. A m ong the sensitive m aterials, prices of natural rubber and of hides and skins have fallen sharply, and in A ugust they w ere substantially below levels of last A ugust. L um ­ ber and plyw ood prices have also been reduced further over the past year. A m ong the less sensitive m aterials, prices of synthetic textile products have been falling and are now at the low est level since 1967. Prices of construction m aterials have risen about 3 per cent over the past year. D eclines in prices of som e m aterials, not­ ably lum ber and w ood products, w hich w ere adversely affected by the declining volum e of residential construction, helped to reduce the size of the increase. H ow ever, prices of m any building m aterials— for exam ple, concrete products, structural steel prod­ ucts, and highly fabricated com ponents such as plum bing and heating equipm ent— have continued to rise strongly. Fuels. T he cost of fuels is rising at an accelerated rate because of sharply rising dem and, an inelastic supply, and higher costs for labor. Prices of coal have risen about tw o-thirds from the low reached in early 1966 reflecting partly the m arked expansion in consum ption of electricity for industrial and residential use. In the first 6 m onths of this year the price rise for coal accelerated to an annual rate of about 45 per cent as stocks of electric utilities and industrial users w ere draw n dow n to levels w ell below norm al. Stocks of m etallurgical-grade coal and low -sulfur-content coal— w hich are sim ilar, or in som e instances identical, types— are espe- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 cially scarce ow ing to continued high rates of dom estic steel m ill operations and rising exports on the one hand and tighter regu­ lations requiring use of low -sulfur content in order to reduce air pollution on the other. C oal production has not expanded sig­ nificantly in the last several years ow ing to strikes, labor short­ ages, and the tim e required to exploit new m ines or reactivate old ones, but in spite of this, exports— particularly to Japan— have continued to gain. R esidual fuel oil prices have risen alm ost as fast as coal prices this year; m ost residual oil is im ported and shortages of tankers have resulted in a sharp rise in rates since spring. Further, the supply of low -sulfur oils necessary for m any uses is sharply lim ited at present-by inadequate capacity to reduce sulfur content in oils. N atural gas prices, w hich are under regulation, have in­ creased only m oderately thus far, but little expansion in supplies is believed feasible in the near future. Producers’ durable goods. Prices of producers’ equipm ent— m achinery, trucks, tractors, office furniture, and so forth— have gone up m uch m ore than those of consum er durables in the last 3 years. This sustained rise for prices of producers’ equipm ent reflects a long period of strong dem and and continued high backlogs of orders. In addition, output of som e types of m achinery is labor-intensive and not highly standardized, so productivity in­ creases m ay be relatively sm all. Prices of producers’ equipm ent rose at an annual rate of about 3 per cent in the first 8 m onths of this year— about the sam e as in the corresponding period of last year, but considerably less than the 7.5 per cent rate of increase in the last 4 m onths of 1969. The w eakening in new orders for equipm ent this year sug­ gests that the rise for the rem ainder of the year m ay be less than in the com parable period of 1969. CONSUMER PRICES C onsum er prices rose about 6 per cent in 1969, and this high rate of advance continued through M ay of this year. H ow ever, in June the advance on a seasonally adjusted basis slow ed to an annual rate of 4.2 per cent, and the July rise w as 3.4 per cent. T he m ost significant developm ents leading to the low er rate of increase w ere the topping out of the long rise in food prices and a leveling off of m ortgage rates in M ay, w hich contributed to a m arked deceleration of the rise in the average cost of services. In addition, the reduced rate of rise in July is attributable in part to a decline in used car prices follow ing a period of sharp rise. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 675 CONSUMER PRICES Per cent Q2 1969 to Q2 1970 Category Change in Contribution to change in level total index All items.............................. 6.0 100.0 Food............................... 6.6 24.9 Commodities less food1 4.0 27.0 Durable goods1........ 3.9 10.9 New cars................ 2.2 .8 Used cars............... -1.4 -.5 Household............. 2.4 2.0 Nondurable goodsx.. 4.1 16.2 Apparel................... 4.2 6.5 Services1......................... 8.1 48.4 Rent............................ 4.1 3.5 Mortgage interest... 11.1 7.0 Transportation.......... 10.2 8.8 Medical care.............. 6.7 6.0 1 Includes items not shown separately. Note.—Based on Department of Labor data. Changes are seasonally adjusted except for used cars, household durable goods, and services. Components may not add to totals because of rounding. Foods. Food prices frequently run counter to the general course of consum er prices, reflecting variations in the food sup­ ply. B ut over the past 2 years, food prices have increased alm ost as m uch as other prices; hence they have helped to put a sharp squeeze on the consum er budget. C onsum er prices rose about 6 per cent from the second quarter of last year to the sam e period in 1970, but food prices advanced 6.6 per cent, accounting for about 25 per cent of the increase in the total index. M uch of the increase in retail food prices over the past year stem m ed from higher m argins for transportation, processing, and m arketing. B etw een the second quarter of last year and the sam e period this year the spread betw een farm and retail prices in­ creased about 8 per cent and accounted for m ost of the rise in retail food costs. M eals “eaten out,” w hich account for over one-fifth of the food budget, w ere about 8 per cent higher in July than a year earlier. T he uptrend in prices of highly processed foods, such as bakery products and canned and frozen foods, has been steady. Prices of less processed foods, such as m eats, eggs, and fresh fruits and vegetables, have fluctuated until recently around a generally rising trend— reflecting in part the failure of production to expand as rapidly as dem and w as increased by grow th in incom es and population. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 M eat prices rose sharply in the second half of 1969. Per capita m eat consum ption, particularly of beef, had been rising for several years as incom e gained, but in the first half of 1969 it w as reduced by a decline in beef m arketings and last fall there w as an even sharper drop in hog slaughter. Beef m arketings recovered som ew hat in the first half of this year, but hog slaughter has only recently begun to rise. Farm and w holesale prices of m eat have been dropping, but retail prices have been slow er to respond. N evertheless, m eat prices are expected to decline as pork becom es m ore plentiful in com ing m onths. A lthough the advance in m eat prices has attracted the m ost attention, prices have risen m ore rapidly over the last year for m ost other food products, including dairy products, bakery goods and cereals, and fruits and vegetables. Prices of coffee also spurted upw ard after B razil suffered a poor crop last year, and they have rem ained high. A s a result of m ore plentiful supplies of m eat, poultry, and other products, food prices at retail m ay hold steady or decline m ore than seasonally this fall. Nonfood commodities. C om m odity prices excluding food rose 4 per cent from July 1969 to July 1970, w ith nondurable goods rising by about 4 per cent and durable goods by about 4.5 per Prices of MEAT at wholesale and retail drop as production rises Production: Dept, of Agriculture data; latest figures, August estimates. Wholesale and retail: Dept, of Labor data; latest figures, August. Seasonally adjusted. Wholesale and retail prices include fish and poultry. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECENT PRICE DEVELOPMENTS 677 cent. H ow ever, prices of hom es rose faster last year than those of other consum er durable goods. Prices of new cars and household durable goods, for exam ple, each rose a little m ore than 2 per cent over the year, and used cars increased by less than 4 per cent. L ast fall dealers’ list prices for 1970 m odel autos w ere raised about 3.5 per cent from the 1969 m odels, but after allow ances for new safety features and other quality im provem ents, the rise w as m uch less. This year m anufacturers’ profits have been eroded by a drop in sales, by a shift in the sales m ix tow ard low er priced and less profitable m odels, and by higher costs of labor and m aterials. A nnouncem ents indicate that prices of 1971 m odels will rise m ore than in recent years; how ever, sm aller and less expensive m odels are being introduced to com pete w ith foreign cars, registrations of w hich increased 20 per cent in the first half of this year. Prices of television sets and radios rose only 2 per cent over the past year. The w ider acceptance of low er priced im ports in U .S. m arkets m ay have helped hold dow n the increase. Apparel and other com m odities. Increases in apparel prices slow ed to about 3.5 per cent over the past year, com pared w ith about 6 per cent in 1968-69. A w eakening in price rises for w om en’s and girls’ clothing has been attributed to a lack of enthusiasm for style changes. Shoe prices rose 5.4 per cent in the last year; in recent years increases for shoes have outpaced those of alm ost any other type of consum er good. Prices of other nondurable goods— such as cigarettes, alco­ holic beverages, and gasoline— increased at an annual rate of 4 per cent betw een M arch and July 1970, about the sam e rate as over the last year. Services. T he increase in the cost of services has m oderated recently after rising at an accelerating rate betw een 1965 and 1969. O ver the year ending in the second quarter the increase w as about 8 per cent, and it accounted for alm ost half of the rise in the consum er price index, as show n in the table that appears on page 675. A disproportionate part of the year-over-year grow th in service charges cam e during the quarter ending M arch 1970, w hen service costs rose 11 per cent at an annual rate; this reflected a 20 per cent annual rate of increase in the cost of insurance and finance and a 33 per cent rise in public transportation. H om e financing costs escalated as statutory ceilings w ere adjusted up­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

w ard on G overnm ent-underw ritten m ortgages to m ake them m ore com petitive w ith conventionally financed m ortgages. The exceptional rise in public transportation costs reflected a rise in transit fares in N ew Y ork C ity follow ing a w age increase for transit w orkers. c | MORTGAGE INTEREST costs level off | after sharp rise RATIO SCALE, 1967=100 SELECTED SERVICES 100 B B B 1 1968 1969 1970 Dept, of Labor data; latest figures, July. In the second quarter of 1970 m ortgage rates leveled off and public transportation costs rose at a m uch reduced rate. M edical care also rose a little less rapidly, w ith the result that the cost of all consum er services has recently been rising about 7 per cent annually, close to the rate for 1969 as a w hole. H ow ­ ever, if costs of m ortgage finance are excluded, the cost of serv­ ices has been rising at a faster rate this year than in 1969. C osts of m edical care services w ere 7 per cent m ore in July 1970 than in July 1969. H ospital charges have increased m ost, but the cost of visits to doctors and dentists has also risen ap­ preciably. T he fast grow th in costs associated w ith hom eow nership— finance charges, m aintenance expenses, and taxes— contrasts w ith a relatively slow increase in rents. R ents and utility costs have been rising at the rate of about 4 per cent annually, but prices of both of these services are likely to accelerate. □ 678 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the B oard of G over­ In all cases the analyses and conclusions nors of the Federal R eserve System and of set forth are those of the authors and do not the Federal R eserve Banks undertake studies necessarily indicate concurrence by the that cover a w ide range of econom ic and Board of G overnors, by the F ederal R eserve financial subjects, and other staff m em bers Banks, or by the m em bers of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of som e instances the Federal R eserve System the studies or papers sum m arized in the finances sim ilar studies by m em bers of the Bulletin are available in m im eographed academ ic profession. form . The list of Federal R eserve B oard From tim e to tim e the results of studies publications at the back of each Bulletin that are of general interest to the econom ics includes a separate section entitled “Staff profession and to others are sum m arized— or Econom ic Studies” that enum erates the stud­ they m ay be printed in full— in this section ies for which copies are currently available of the Bulletin. in that form . Study Summary OPTIMAL CHOICE OF MONETARY POLICY INSTRUMENTS IN A SIMPLE STOCHASTIC MACRO MODEL William Poole—Staff, Board of Governors Published in The Quarterly Journal of Economics, vol. 84, May 1970 A n im portant controversy over the conduct tainty, once the central bank has set, for in­ of m onetary policy is w hether the central stance, the m oney stock, it w ould know the bank should: (1 ) be prim arily concerned level of interest rates. Thus, to analyze the w ith adjusting the m oney stock w hile per­ problem theoretically it is necessary to as­ m itting interest rates to fluctuate freely; (2) sum e that w hen the m oney stock is set, be prim arily concerned w ith controlling in­ there is no w ay of know ing exactly w hat in­ terest rates w hile perm itting the m oney terest rates w ill be and vice versa w hen in­ stock to fluctuate freely; or (3 ) follow som e terest rates are set. T he sim plest form al sort of com prom ise that involves control of m odel in w hich the problem can be investi­ both the m oney stock and interest rates. gated is the H icksian IS-LM m odel w ith Little theoretical w ork has been done to random term s added to both the IS and the show the conditions that favor one policy L M functions. This sim ple m odel can be over the others. m anipulated quite easily under the assum p­ It is first necessary to realize that the tion that the central bank controls m one­ problem of choosing the optim al m onetary tary policy in such a w ay as to m inim ize the policy instrum ent arises from the existence variance of gross national product from a of uncertainty. In a w orld of perfect cer­ desired target level. Digitized for FRASER 679 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

By using this sim ple m odel, it is found In general, how ever, a com prom ise pol­ that if there is great uncertainty as to the icy is best. W hen the IS variance is high future spending of consum ers, investors, and relative to the L M variance, the com pro­ governm ents com pared w ith the uncertainty m ise takes the form of placing greater em ­ in the am ount of m oney that persons w ant to phasis on controlling the m oney stock than hold, then a policy of fixing the m oney stock on controlling interest rates but neverthe­ will lead to a sm aller variance in G N P than less cushioning interest rate fluctuations to will a policy of fixing interest rates. This sit­ som e extent by adjusting the m oney stock. uation is represented in the m odel by an IS C onversely, w hen the L M is high relative function having a random term w ith a to the IS variance, the com prom ise takes the higher variance than that of the random form of placing greater em phasis on con­ term in the L M function. O n the other hand, trolling interest rates than on controlling if the L M variance is higher than the IS the m oney stock, but m oney stock fluctua­ variance, then a policy of controlling inter­ tions are lim ited by appropriate adjustm ents est rates is to be preferred. in interest rates. □ Digitized for FRASER6 80 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits, January-April 1 9 7 0 In the 3 m onths ending A pril 30, 1970, in­ strum ents issued in denom inations of terest rates paid on tim e and savings deposits $100,000 or m ore, on w hich ceiling rates up w ere increased at m any com m ercial banks— to IV2 per cent have been established. Sav­ continuing the upw ard adjustm ents that had ings deposits also reversed their dow ntrend begun im m ediately after ceiling rates w ere and increased m oderately. B y contrast, out­ lifted by bank supervisory authorities effec­ standing consum er-type tim e deposits reg­ tive January 21, 1970. A substantial num ber istered a slight decline— the first since the of banks, particularly the larger institutions, quarterly rate surveys w ere started in Jan­ had m oved their offering rates to the new uary 1967.1 ceilings before the rate survey on January 31; NET CHANGES IN DEPOSITS and in the period from then through A pril, m any m ore follow ed. T otal tim e and savings deposits, IPC , at in­ This upw ard m ovem ent of rates and the sured com m ercial banks increased by about resulting rate structure on A pril 30 reflect the $4.2 billion, or nearly 2.5 per cent, in the 3 continued com petitive pressures from high m onths ending A pril 30, 1970 (T able 1). yields on m arket instrum ents. Even though This com pares w ith a decline of nearly $7 m oney m arket rates dropped w ell below the billion in the 12 m onths ending January 31. peak levels of early 1970, yields on these Large negotiable C D ’s, held m ainly by instrum ents rem ained above bank rates dur­ businesses, accounted for m ore than half of ing the first part of the survey period. H ow ­ the January-A pril increase. The rapid grow th ever, for som e w eeks near the end of the in these deposits— $2.3 billion, or 36 per cent quarter, m arket rates fell below bank ceil­ — brought the am ount outstanding to nearly ings, and banks w ere again able to com pete $8.8 billion. N evertheless, this w as only about effectively for deposits. half of the peak level of $ 16.9 billion reached A ccom panying the im proved relationship in the survey on O ctober 31, 1968. Largebetw een offering rates and m arket yields, denom ination nonnegotiable C D ’s and open com m ercial banks experienced their first account deposits also expanded in the m ost large quarterly inflow of tim e and savings de­ recent quarter— by about $700 m illion, or posits since late 1968. A fter declining sharp­ 13 per cent. W hile m any large banks, w hich ly in the 12 m onths ending January 31,1970, hold m ost of these deposits, began to offer the total tim e and savings deposits of individuals, 1 Previous surveys of time and savings deposits at all partnerships, and corporations (IPC ) ex­ member banks were conducted by the Board of Gover­ panded in the January-A pril period by m ore nors in late 1965, in early 1966, and quarterly beginning in 1967. Beginning in 1968 the quarterly surveys were than half of the previous year’s decline. A expanded to provide figures for all insured commercial banks and were conducted jointly by the Board of Gov­ m ajor part of the expansion w as in large ne­ ernors and the Federal Deposit Insurance Corporation. gotiable certificates of deposit and other in- The results of earlier surveys have appeared in Bul­ letins for 1966-70, the most recent being May 1970, pp. 408-19. Note.—Caroline H. Cagle of the Board’s Division Appendix tables for this article appear on pp. 688-90 of Research and Statistics prepared this article. of this Bulletin. Digitized for FRASER 681 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES, JULY 1969-APRIL 1970 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits Type of deposit 1969 1970 1969 1970 (quarterly rate) July 31, 1969- Jan. 31- July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 Jan. 31,1970 Apr. 30, 1970 Total time and savings deposits 13,290 13,161 13,148 13,315 178,318 175,485 173,404 177,585 -1.4 2.4 Savings............................................ 12,819 12,622 12,638 12,876 92,075 91,529 89,898 90,511 -1.2 .7 Time deposits in denominations of less than $100,000—total... 12,974 63,934 64,324 66,672 66,402 2.2 -.4 Accounts with original ma­ turity of— Less than 1 year.................. n.a. n.a. n.a. 11,656 n.a. n.a. n.a. 42,871 1 up to 2 years..................... n.a. n.a. n.a. 11,860 n.a. n.a. n.a. 14,133 2 years or more................... n.a. n.a. n.a. 9,399 n.a. n.a. n.a. 9,398 All maturities: CD’s— Issued mainly to con­ sumers i......................... 12,254 12,378 12,165 n.a. 46,611 46,274 45,863 n.a. Issued mainly to others 2. 6,685 6,405 6,339 n.a. 3,464 3,029 3,161 n.a. -4.1 Open accounts— Passbook or statement form*............................ 2,064 2,293 2,753 3,162 12,317 13,508 16,039 (16,320) 14.2 Other4............................... 1,677 1,713 1,641 n.a. 1,543 1,513 1,609 n.a. 2.2 Time deposits in denominations of $100,000 or more............... 4,258 4,086 4,497 5,469 16,735 13,945 11,835 14,900 -15.9 25.9 Negotiable CD’s................. 1,906 1,630 2,001 2,750 9,525 7,686 6,445 8,788 -17.7 36.4 N Op o e n n n e a g c o c t o ia u b n l t e .. . C ... D .... ’ . s .. . . . . . . . . . . . . . . . . . . . . 2,4 5 8 3 6 4 2,5 5 6 2 9 3 2,5 4 8 7 7 5 3,206 5 1 , , 4 7 1 9 1 9 4 1 , , 7 5 2 3 9 0 3 1 , , 9 4 8 0 6 4} 6,112 - -1 1 1 4 . . 6 2 13.2 Christmas savings and other special funds............................ 7,982 7,472 7,894 8,278 5,573 5,686 4,999 5,772 -5.1 15.5 n.a. Not available. than $100,000, other than those described in footnote 3. These in­ 1 Includes all time CD’s in denominations of less than $100,000 struments are issued both to consumers and to businesses. for which, in the judgment of the reporting banks, 50 per cent or Note.—Data were compiled jointly by the Board of Governors of more of the outstanding volume of deposits was issued to consumers the Federal Reserve System and the Federal Deposit Insurance (nonbusiness holders). Corporation. For July 31, 1969, and January 31 and April 30, 1970, 2 Includes all time CD’s in denominations of less than $100,000 for the information was reported by a probability sample of all insured which, in the judgment of the reporting bank, 50 per cent or more of commercial banks; for October 31, 1969, the data for member banks the outstanding volume of deposits was issued to businesses. were reported by virtually all such banks and for insured nonmember 3 Includes time deposits, open account, issued in passbook, state­ banks by the same sample of these banks reporting in earlier surveys. ment, or other forms that are direct alternatives for regular savings Some deposit categories include a small amount of deposits out­ accounts. Most of these are believed to be in accounts totaling less standing in a relatively few banks that no longer issue these types of de­ than $100,000. posits 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. new ceiling rates shortly after the change in billion in the year ending January 31, 1970, R egulation Q on January 21, m oney m arket and relatively little expansion in 1968, w hen rates on com petitive types of instrum ents a 4 per cent ceiling rate had been in effect. w ere above bank rates during the first part M uch of the increase in savings deposits in of the period covered by this survey. It w as the m ost recent quarter occurred at sm all not until M arch in fact that m arket rates banks. H oldings of large banks generally dropped sufficiently to enable banks to issue show ed little change or som e decline, prob­ large-denom ination tim e deposits in volum e ably because depositors in these banks are to dom estic investors. som ew hat m ore rate sensitive than those at R egular savings deposits increased by sm aller banks. about $600 m illion from January through C onsum er-type tim e deposits— all tim e de­ A pril, after m ost banks had raised their m ost posits in denom inations of less than $ 100,000 com m on offering rate to the new 4 Vi per cent (other than savings)— declined slightly to ceiling. This contrasts w ith a decline of $3.7 $66.4 billion on A pril 30. This contrasts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 683 sharply w ith large increases in these deposits on these deposits in the January-A pril throughout 1967, 1968, and 1969. period. A lm ost all of the expansion in consum ertype tim e deposits from July 1969 through MATURITY DISTRIBUTION OF CONSUMER- TYPE TIME DEPOSITS January 1970 had been in open account de­ posits in passbook or statem ent form , w hich In the A pril survey a breakdow n of consum erhad been m ade quite attractive to depositors type tim e deposits by the original m aturity of at m any banks because of the com bination of the deposit becam e available for the first the rate paid— 5 per cent— and the conven­ tim e.2 The figures indicate that about tw oience and flexibility of this type of instrum ent. thirds ($42.9 billion) of all outstanding con­ In the m ost recent period, how ever, these de­ sum er-type tim e deposits had m aturities of posits increased by less than $300 m illion, less than 1 year. N early all insured com m er­ com pared w ith $2.5 billion in the preceding cial banks had som e of these deposits. D e­ quarter. This sharply reduced grow th is re­ posits w ith m aturities of 1 to 2 years, w hich lated in part to the changes in ceiling rate also are held by m ost banks, am ounted to structure. Since these deposits generally re­ $14.1 billion. H oldings of longer-term instru­ quire 90 days’ notice of w ithdraw al and are m ents— 2 years and over— totaled $9.4 bil­ classed as m ultiple-m aturity deposits, they lion, but only seven-tenths of the banks re­ w ere not affected by the changes in ceiling ported som e of these outstanding on A pril 30. rates on January 21. The m axim um rate ap­ Since m aturity data are not available for plicable to all such deposits rem ained at 5 any previous survey, it is not possible to ascer­ per cent until early M arch. A t that tim e the tain the extent to w hich the m aturity pattern supervisory authorities increased the ceiling changed in the reporting period. B ut in view rates on m ultiple-m aturity deposits w ith m a­ of the authorization of higher rates for longer turities of 1 year and over to the sam e levels m aturities, it is likely that appreciable as single-m aturity deposits of sim ilar m aturi­ am ounts-of deposits w ith m aturities of 1 to ties. W hile the new rates w ere m ade retro­ 2 years and of 2 years and over represented active to January 21, the delay undoubtedly shifts by depositors out of the less-than-1contributed to the reduced flow of funds into year category into the longer m aturities to these deposits. obtain the higher rates. O ther factors also m ay have affected the The proportion of total consum er-type change in grow th pattern of consum er-type tim e deposits that represented m aturities of tim e deposits. Som e depositors, particularly 1 year or m ore w as larger for sm all banks the m ore interest sensitive, m ay not have than for big banks. F or exam ple, banks w ith found the new ceiling rates on the longer total deposits of less than $10 m illion held m aturities attractive com pared w ith yields m ore than half of their total consum er-type available on m arket instrum ents. M oreover, deposits in m aturities of 1 year or m ore. This m any banks introduced fairly large m inim um com pares w ith about one-fourth of such de­ posits that w ere in the longer m aturities at deposit requirem ents on the m aturities of 1 very large banks (total deposits of $500 m il­ year or m ore on w hich they w ould pay the lion and over). new ceiling rates. A dditional seasonal or spe­ cial factors— including unusually large Fed­ eral incom e tax paym ents and the largest 2 Since banks had not previously been required to report this breakdown of the figures, some banks were single corporate debt offering in U.S. history permitted to estimate the maturity distribution in the by a m ajor utility— put dow nw ard pressure April 30 survey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 TABLE 2 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON JANUARY 31 AND APRIL 30, 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 Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. Apr. Jan. 30 31 30 31 30 31 30 31 30 31 30 31 Amount of deposits (in millions of dollars) Number of banks, or percentage distribution or percentage distribution Savings deposits: Issuing banks............................................ 12,876 12,638 12,384 12,152 492 486 90,511 89,898 37,196 36,778 53,315 53,120 Percentage distribution by most com­ mon rate paid on new deposits : 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 3.50 or less...................................... 9.0 15.2 9.2 15.6 3.7 5.2 3.1 5.2 5.1 8.9 1.8 2.6 3.51-4.00......................................... 18.6 52.1 19.1 52.4 5.9 44.2 7.4 53.2 12.0 54.7 4.1 52.2 4.01-4.50......................................... 72.4 32.7 71.7 32.0 90.4 50.6 89.5 41.6 82.9 36.4 94.1 45.2 Time deposits in denominations of less than $100,000: Maturities less than 1 year: Issuing banks........................................ 11,656 212,385 11,173 211,913 483 2472 42,871 266,636 22,672 238,431 20,199 228,206 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...................................... 2.8 2.0 2.8 2.0 1.0 .6 .2 .5 .4 .9 0) .1 4.51-5.00......................................... 97.2 74.5 97.2 74.2 99.0 83.9 99.8 76.8 99.6 78.8 100.0 73.9 5.01-5.50......................................... 12.5 12.6 9.3 11.2 10.9 11.6 5.51-5.75......................................... 11.0 11.2 6.2 11.5 9.4 14.4 Maturities of 1 up to 2 years: Issuing banks........................................ 11,860 n.a. 11,391 n.a. 469 n.a. 14,133 n.a. 10,855 n.a. 3,277 n.a. Percentage distribution by most common rate paid on new de­ posits : Total................................................... 100.0 100.0 100.0 100.0 100.0 100.0 4.75 or less....................................... .4 .5 .1 .1 4.76-5.00......................................... 7.2 7.1 9.2 13.5 13.2 14.6 5.01-5.25......................................... .1 (l) .4 .1 (l) .6 5.26-5.50......................................... 92.3 92.4 90.4 86.3 86.7 84.8 Maturities of 2 years and over: Issuing banks........................................ 9,399 n.a. 8,953 n.a. 446 n.a. 9,397 n.a. 4,775 n.a. 4,623 n.a. Percentage distribution by most common rate paid on new de­ posits : Total.................................................. 100.0 100.0 100.0 100.0 100.0 4.75 or less...................................... .3 .3 .9 O) .1 4.76-5.00......................................... 1.7 1.5 6.1 7.1 2.2 12.1 5.01-5.25.......................................... .1 .1 .2 O) (!) 5.26-5.50......................................... .7 .6 1.8 1.6 2.1 5.51-5.75.......................................... 97.2 97.5 91.0 91.3 95.6 86.8 Time deposits in denominations of $100,000 or more: Issuing banks........................................ 5,469 4,497 4,984 4,022 485 475 14,900 11,832 3,840 2,577 11,061 9,256 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...................................... 11.9 28.8 12.6 30.5 4.1 13.6 5.3 8.3 11.2 22.3 3.6 4.4 5.76-6.00......................................... 3.6 13.6 3.8 14.1 2.3 9.3 2.0 7.2 2.9 13.2 1.6 5.5 6.01-6.25......................................... 14.2 33.4 14.0 32.1 16.1 43.8 12.2 35.1 10.8 33.4 12.6 35.6 6.26-6.50......................................... 5.1 2.3 4.8 2.2 7.4 3.6 5.8 2.3 5.6 1.7 5.9 2.5 6.51-6.75.......................................... 6.5 1.9 6.2 1.5 10.1 5.3 15.0 14.1 9.1 3.3 17.0 17.1 6.76-7.00.......................................... 13.7 4.1 12.9 3.8 22.0 7.2 28.4 6.9 16.1 4.0 32.6 7.7 7.01-7.25.......................................... .4 O) .3 1.0 .4 .5 .1 .2 .6 .1 7.26-7.50.......................................... 44.6 15.9 45.4 i 5.8 37.0 16.8 30.8 26.0 44.1 22. i 26.1 27.1 For notes, see p. 687. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 685 RATE STRUCTURE AND RATE CHANGES bank on consum er-type tim e than on savings deposits, and a som ew hat greater proportion A s in previous periods after rate ceilings of sm all banks than of large banks w ere pay­ w ere raised, m any banks m oved their rates ing the new ceilings of 5 Vi and 53A per cent prom ptly to the new ceilings. Som e banks, on A pril 30. W hile nine-tenths or m ore of on the other hand, set the effective date as the issuing banks in each of the m ajor size February 1 or later in that m onth, and for classes reported that they w ere paying these these banks the rate increases w ere not re­ rates, banks w ith total deposits of less than ported until the A pril 30 survey. $100 m illion had a higher percentage of the O n consum er-type tim e deposits w ith m a­ total w ith rates at this level than larger banks. turities of less than 1 year, w here the ceiling M ost of the large m oney m arket banks rate of 5 per cent w as unchanged, nearly all raised offering rates on various m aturities of insured com m ercial banks w ere paying the tim e deposits in denom inations of $100,000 5 per cent rate (Table 2). O n deposits w ith and over im m ediately after the new ceiling m aturities of 1 to 2 years, m ore than ninerates w ere announced in late January. A nd tenths of the banks, w hich held m ore than by A pril 30 nearly four-fifths of the banks four-fifths of the deposits in this m aturity w ith total deposits of $100 m illion and over, range, w ere paying 5 Vi per cent. O n the w hich hold the bulk of these deposits, had longest term instrum ents— 2 years or m ore m oved their m ost com m on offering rate — virtually every issuing bank in the country above the old 6V4 per cent ceiling. M ost of reported 5% per cent as its m ost com m on these banks reported that their m ost com m on rate. rate w as either 7 or 7 Vi per cent, indicating For regular savings deposits, the num ber that inflows of deposits in the 30 days prior of banks paying the new ceiling rate on A pril to the reporting date had been largest for 30 w as a sm aller proportion of the total than m aturities of 6 m onths or m ore. it was for consum er-type tim e deposits. For nonnegotiable C D ’s and open ac­ N early three-fourths of all insured com m er­ count deposits in denom inations of $100,000 cial banks indicated they had a 4Vi per cent and over, w here about 46 per cent of the rate at the end of A pril, and these banks held total is held by consum ers, the m ost com m on about nine-tenths of all regular savings de­ rate reported w as 7 Vi per cent at half of the posits. This was tw ice the proportion at the sm all issuing banks. By contrast, at larger new ceiling rate on January 3 1 ,1 0 days after banks (total deposits of $100 m illion or the ceiling had been raised. m ore) less than a third reported a m ost com ­ R elatively m ore large than sm all banks m on rate as high as this. This pattern of w ere paying a 4 Vi per cent rate on savings higher rates paid at sm all banks than at large deposits. In the case of the largest banks banks was also characteristic of consum er- (those w ith total deposits of $500 m illion type tim e deposits. and over) nearly every bank w as offering this rate, but the proportion dropped as bank AVERAGE INTEREST RATES size decreased— to about tw o-thirds for the sm allest banks. M any of the banks paying Reflecting the upw ard adjustm ent in rates a rate below the ceiling rate on savings w ere paid on tim e and savings deposits in the m ost located in the M iddle W est, w here rates on recent survey period, w eighted average rates these deposits have been low er than in other on m ost form s of tim e and savings deposits parts of the country for som e years. w ere higher on A pril 30 than 3 m onths ear­ By contrast, rates varied less by size of lier. O n all form s of these IPC deposits, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 the average rate at the end of A pril at all rose from 5.12 to 5.19 per cent. F or the insured com m ercial banks w as 4.93 per longer m aturities of sm all-denom ination tim e cent (T able 3). This w as 22 basis points deposits— 1 to 2 years, and 2 years and over higher than on January 31,1970. O n regular — average rates paid on A pril 30 w ere 5.43 savings deposits the rate increased from 4.17 and 5.69 per cent, respectively— just under to 4.42 per cent, w hile on total tim e deposits the perm issible ceilings. in denom inations of less than $100,000 it Increases betw een January 31 and A pril TABLE 3 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON APRIL 30, 1970 Per cent per annum Time deposits in denominations of— Less than $100,000 $100,000 or more All Savings Bank location and size of bank time and and (total deposits in millions of dollars) savings small de­ Savings Maturing in— deposits nomina­ tion time Total Nego­ All deposits Less 1 up to 2 years tiable other than 2 years or more CD’s 1 year All banks: All size groups................................ 4.93 4.75 4.42 5.19 5.00 5.43 5.69 6.93 6.74 Less than 10................................ 4.95 4.91 4.31 5.26 5.00 5.42 5.72 6.58 6.46 10-50............................................ 4.88 4.79 4.39 5.20 5.00 5.43 5.73 6.73 6.89 50-100.......................................... 4.88 4.71 4.39 5.18 5.00 5.47 5.74 7.09 7.02 100-500........................................ 4-89 4.69 4.42 5.16 5.00 5.39 5.65 6.98 6.74 500 and over................................ 5-00 4.71 4.48 5.16 5.00 5.48 5.66 6.94 6.67 Banks in— Selected large SMSA’s1: All size groups............................ 4.95 4.70 4.46 5.16 5.00 5.44 5.66 6.95 6.71 Less than 10............................ 4.80 4.73 4.37 5.21 5.00 5.45 5.70 6.80 6.87 10-50........................................ 4.81 4.69 4.39 5.18 5.00 5.42 5.70 6.78 6.78 50-100...................................... 4.88 4.71 4.43 5.17 5.00 5.46 5.71 6.91 6.99 100-500.................................... 4.91 4.68 4.43 5.16 5.00 5.39 5.64 7.01 6.77 500 and over........................... 5.01 4.71 4.49 5.15 5.00 5.47 5.65 6.94 6.67 All other SMSA’s: All size groups............................ 4.86 4.71 4.37 5.18 5.00 5.43 5.70 6.92 6.84 Less than 10............................ 4.80 4.72 4.25 5.22 4.99 5.43 5.75 6.12 6.12 10-50........................................ 4.85 4.76 4.36 5.22 5.00 5.46 5.70 7.06 7.24 50-100...................................... 4.92 4.74 4.42 5.16 4.99 5.47 5.75 7.21 7.18 100-500.................................... 4.86 4.71 4.41 5.16 5.00 5.37 5.65 6.89 6.68 500 and over........................... 4.80 4.58 4.21 5.19 5.00 5.50 5.75 6.86 6.72 Banks outside SMSA’s: All size groups................................ 4.93 4.86 4.35 5.23 5.00 5.43 5.74 6.79 6.79 Less than 10................................ 5.00 4.96 4.31 5.26 5.00 5.43 5.72 6.73 6.48 10-50............................................ 4.93 4.85 4.39 5.20 5.00 5.43 5.75 6.63 6.89 50-100.......................................... 4.83 4.67 4.28 5.22 5.00 5.49 5.75 7.33 6.87 100-500........................................ 4.75 4.65 4.35 5.19 5.00 5.44 5.74 7.01 6.83 4.98 4.87 4.50 5.19 5.00 5.50 5.75 7.50 1 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 Y oungstown-Warren Des Moines St. Louis San Diego Albany-Schenectady-T roy 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 Note.—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

TIME AND SAVINGS DEPOSITS 687 30 w ere greatest on large-denom ination tim e all other deposits from 6.44 to 6.74 per cent deposits. O n negotiable C D ’s the average — increases of 25 and 30 basis points, re­ rate m oved from 6.68 to 6.93 per cent and on spectively. □ NOTES TABLE 2 n.a. Not available—-see footnote 2. the rate changed during that period, the rale reported was the rate * Less than 0.05 per cent. prevailing on the largest dollar volume of inflows from the time of the 2 A breakdown of small-denomination time deposits by maturity last rate change to the survey date. was not reported in the January 31, 1970, survey; the total for all While rate ranges of Va or Vi of a percentage point are shown in this maturities of these deposits is shown in maturities of less than 1 year. and other tables, the most common rate reported by most banks was the top rate in the range; for example, 4.00, 4.50, etc. On business-type Note.—The most common interest rate for each instrument or time deposits in denominations of $100,000 and over, however, some group of instruments refers to the basic stated rate per annum (before large banks have had on past surveys rates at intervals of yi of a per­ compounding) in effect on the survey date that was generating the centage point. largest dollar volume of deposit inflows. If the posted rates were un­ Time deposits in denominations of $100,000 and over include ne­ changed during the 30-day period just preceding the survey date, the gotiable and nonnegotiable CD’s and open accounts. rate reported as the most common rate was the rate in effect on the Figures may not add to totals because of rounding. largest dollar volume of deposit inflows during that 30-day period. If APPENDIX TABLES 1-6: 1 Less than $500,000. still had some deposits outstanding on the survey date. Time 2 Omitted to avoid individual bank disclosure. deposits, open account, exclude Christmas savings and other special accounts. Dollar amounts may not add to totals because Note.—Data were compiled from information reported by a of rounding. probability sample of all insured commercial banks expanded to In the headings of these tables under “Most common rate paid provide universe estimates. (per cent)" the rates shown are those being paid by nearly all Figures exclude banks that reported no interest rate paid and reporting banks. However, for the relatively few banks that that held no deposits on the survey dates, and they also exclude reported a rate in between those shown, the bank was included a few banks that had discontinued issuing these instruments but in the next higher rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on April 30, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total o 3 r .5 le 0 ss 4.00 4.50 o 3 r .5 le 0 ss 4.00 4.50 NUMBER OF BANKS MILLIONS OF DOLLARS All banks......................................................................... 12,876 1,156 2,396 9,324 90,511 2,833 6,649 81,028 Size of bank (total deposits in millions of dollars): Less than 10............................................................... 7,546 862 1,767 4,917 6,804 416 1,346 5,043 10-50........................................................................... 4,308 241 557 3,510 20,861 794 2,410 17,658 50-100......................................................................... 530 35 43 452 9,531 662 719 8,149 100-500....................................................................... 381 16 25 340 19,558 681 1,414 17,463 500 and over............................................................... in 2 4 105 33,757 (2) 761 32,716 Federal Reserve district: Boston.......................................................................... 367 4 59 304 4,235 98 368 3,770 New York................................................................... 451 8 26 417 14,840 355 1,192 13,293 Philadelphia............................................................... 496 71 136 289 5,921 583 842 4,497 Cleveland..................................................................... 798 92 103 603 9,197 552 383 8,262 Richmond................................................................... 766 10 32 724 6,681 94 140 6,447 Atlanta......................................................................... 1,573 50 316 1,207 6,415 169 1,114 5,131 Chicago....................................................................... 2,492 349 545 1,598 15,941 567 1,660 13,715 St. Louis...................................................................... 1,319 130 255 934 2,640 144 289 2,207 Minneapolis............................................................... 1,364 295 555 514 1,895 206 430 1,260 Kansas City................................................................ 1,677 94 302 1,281 3,115 50 144 2,921 Dallas........................................................................... 1,197 53 67 1,077 3,011 17 88 2,905 San Francisco............................................................. 376 376 16,619 16,619 APPENDIX TABLE 2—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN LESS THAN 1 YEAR Most common interest rates paid by insured commercial banks on new deposits on April 30, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total o 4 r .5 le 0 ss 4.75 5.00 o 4 r .5 le 0 ss 4.75 5.00 NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................................................ 11,656 321 11,333 42,871 89 (2) 42,780 Size of bank (total deposits in millions of dollars): Less than 10............................................................. 6,593 242 6,351 5,423 49 5,374 10-50.......................................................................... 4,053 70 3,983 12,663 14 12,649 50-100........................................................................ 527 4 523 4,586 24 4,562 100-500..................................................................... 373 5 366 7,562 2 (2) 7,558 500 and over............................................................. 110 110 12,637 12,637 Federal Reserve district: Boston........................................................................ 331 7 324 1,500 1 1,499 New York................................................................. 423 27 395 3,250 3 3,247 Philadelphia............................................................. 411 30 380 1,959 18 1,939 Cleveland.................................................................. 755 80 675 3,222 13 3,209 Richmond................................................................. 631 8 623 3,067 1 3,066 Atlanta....................................................................... 1,381 58 1,323 2,974 19 2,955 Chicago..................................................................... 2,187 54 2,133 10,161 27 10,134 St. Louis.................................................................... 1,126 45 1,081 2,561 7 2,553 Minneapolis............................................................. 1,167 9 1,158 3,141 3,141 Kansas City.............................................................. 1,647 1,647 2,452 2,452 Dallas......................................................................... 1,245 1,242 2,369 2,368 San Francisco........................................................... 352 352 6,215 6,215 For notes to Appendix Tables 1-6, see page 687. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 689 APPENDIX TABLE 3—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 1 UP TO 2 YEARS Most common interest rates paid by insured commercial banks on new deposits on April 30, 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 or 5.00 5.25 5.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks.......................................................... 11,860 52 850 7 10,951 14,133 9 1,912 20 12,191 Size of bank (total deposits in millions of dollars): Less than 10............................................ 6,923 47 553 6,323 5,096 695 4,395 10-50......................................................... 3,982 5 238 3,734 4,739 674 2 4,061 50-100....................................................... 486 16 470 1,020 63 956 100-500..................................................... 362 35 325 1,890 411 (2) 1,461 500 and over............................................ 107 8 99 1,387 69 1,319 Federal Reserve district: Boston..................................................... 199 31 168 60 3 57 New York................................................ 385 27 358 454 80 374 Philadelphia............................................ 413 44 369 1,213 162 1,050 Cleveland................................................ 690 96 591 1,028 (2) 140 (2) 884 Richmond............................................... 675 11 664 681 13 668 Atlanta..................................................... 1,506 162 1,344 1,860 536 1,324 Chicago..................................................... 2,305 46 174 2,084 3,061 394 (2) 2,644 St. Louis................................................. 1,349 3 197 1,149 1,944 398 1,546 Minneapolis........ ................................. 1,230 67 1,163 1,123 105 1,018 Kansas City............................................ 1,648 16 1,628 1,167 5 1 1,161 Dallas....................................................... 1,113 11 1,102 850 12 838 San Francisco.......................................... 347 14 331 693 (2) 64 '<*) 628 APPENDIX TABLE 4—TIME DEPOSITS, IPC, IN DENOMINATIONS OF LESS THAN $100,000—MATURING IN 2 YEARS OR MORE Most common interest rates paid by insured commercial banks on new deposits on April 30, 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........................................ 9,399 25 164 64 9,139 9,397 663 1 152 8,578 Size of banks (total deposits in millions of dollars): Less than 10......................... 4,993 20 94 30 4,849 1,140 42 1 1,094 10-50...................................... 3,482 34 23 3,419 2,711 50 1 88 2,573 50-100.................................... 478 9 3 466 924 11 12 900 100-500................................... 341 4 20 6 310 1,561 O) 192 (2) 49 1,319 500 and over......................... 105 1 7 2 95 3,062 (2) 368 (2) 2,692 Federal Reserve district: Boston.................................... 164 6 156 124 2 120 New York............................. 341 22 12 301 766 3 71 (? 688 Philadelphia......................... 291 8 281 1,318 420 (2) 892 Cleveland.............................. 616 1 612 774 (2) (2) (2) 744 Richmond............................. 548 9 539 812 32 780 Atlanta.................................. 1,111 19 1,087 894 31 11 852 Chicago.................................. 1,855 1 28 1,784 1,854 (2) 34 1 94 1,726 St. Louis................................ 899 28 870 411 5 (2) 406 Minneapolis......................... 994 27 967 517 6 512 Kansas City.......................... 1,376 6 1,365 421 2 2 417 Dallas.................................... 898 1 13 882 417 (2) 49 367 San Francisco....................... 306 8 295 1,090 12 1,077 For notes to Appendix Tables 1-6, see page 687. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APPENDIX TABLE 5—NEGOTIABLE CD's, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on April 30, 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......................................... 2,750 306 136 380 174 205 524 71,018 8,788 327 1391,230 4211,1422,470 543,006 Size of bank (total deposits in mil­ lions of dollars): Less than 10........................... 796 *87 44 128 55 14 191 277 252 40 7 65 16 5 48 71 10-50....................................... 1,365 198 75 151 86 121 225 3 506 1,082 146 55 101 86 108 255 3 329 50-100..................................... 251 12 8 41 9 26 38 117 701 8 20 71 22 91 114 376 100-500................................... 240 6 7 47 19 20 52 3 86 1,931 6 40 396 78 178 437 ■“ 6 790 500 and over.......................... 98 3 2 13 5 24 18 1 32 4,822 127 (2) 598 218 7601,616 (2)1,441 Federal Reserve district: Boston..................................... 137 9 1 26 18 12 22 1 48 325 3 (2) 127 28 50 14 (2) 100 New York.............................. 158 11 9 31 16 40 26 25 1,660 125 15 242 37 265 829 147 Philadelphia........................... 94 9 1 43 12 6 23 173 4 (2) 90 59 7 12 Cleveland................................ 145 49 6 7 3 7 33 40 413 13 1 191 4 55 41 108 Richmond............................. 140 24 23 8 10 10 9 56 529 71 3 44 24 18 37 331 Atlanta.................................... 460 21 59 44 7 12 102 215 596 31 52 21 28 78 145 241 Chicago.................................. 385 43 9 45 39 46 55 3 145 1,103 52 57 68 36 77 130 49 635 St. Louis................................. 239 44 4 29 21 2 51 88 233 10 49 5 (2) 17 126 Minneapolis........................... 170 41 20 28 4 11 49 17 158 4 4 48 2 53 14 33 Kansas City.....................!., 284 48 2 42 21 5 44 122 342 11 (2) 64 8 8 83 167 Dallas...................................... 374 6 56 24 15 95 3 175 1,453 1 72 133 105 584 3 555 San Francisco........................ 164 1 2 21 11 33 32 64 1,802 (2) (2) 214 115 348 570 552 APPENDIX TABLE 6—NONNEGOTIABLE CD’s AND OPEN ACCOUNT DEPOSITS, IPC, IN DENOMINATIONS OF $100,000 OR MORE Most common interest rates paid by insured commercial banks on new deposits on April 30, 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......................................... 3,206 452 75 442 136 203 360 141,524 6,100 616 169 579 694 9291,529 671,517 Size of bank (total deposits in mil­ lions of dollars): Less than 10........................... 940 144 4 171 32 34 46 3 506 303 108 1 35 25 16 9 109 10-50....................................... 1,601 200 38 194 62 96 202 8 801 919 107 12 93 35 83 114 5 470 50-100..................................... 334 34 24 35 21 49 53 1 117 582 18 14 50 27 105 93 (2) 275 100-500................................... 244 51 8 36 10 13 44 1 81 1,107 112 18 224 50 69 253 (2) 368 500 and over......................... 87 23 1 6 11 11 15 1 19 3,188 271 (2) 178 557 6561,060 (2) 295 Federal Reserve district: Boston.................................... 127 8 1 2 1 19 43 53 106 9 (2) (2) (2) 19 27 24 New York.............................. 205 51 6 14 33 17 44 2 38 1,574 160 8 119 471 519 201 (2) 48 Philadelphia........................... 196 72 1 17 6 3 6 91 243 102 (2) 29 10 29 3 67 Cleveland............................... 162 29 21 23 5 24 18 42 219 37 4 11 31 31 38 67 Richmond.............................. 315 47 27 33 13 29 12 154 479 10 10 17 15 146 132 150 Atlanta............................ 471 58 5 34 9 11 75 1 278 581 29 2 152 5 24 63 (2) 292 Chicago.................................. 537 96 8 68 42 37 64 222 665 132 11 71 83 13 98 256 St. Louis................................. 248 34 13 9 5 12 175 215 58 19 22 6 7 103 Minneapolis........................... 120 5 1 36 2 3 3 70 62 1 (2) 7 (2) 3 O) 49 Kansas City........................... 237 14 2 36 14 22 19 130 181 28 (2) 17 5 12 37 83 Dallas...................................... 456 31 152 1 28 39 205 480 20 66 (2) 62 52 280 San Francisco....................... 132 7 3 14 1 8 25 8 66 1,296 29 126 52 (2) 69 868 5 99 For notes to Appendix Tables 1-6, see p. 687. Digitized for FR6A9S0ER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This 17th joint interim report reflects the This report was prepared by Charles A . Treasury-F ederal R eserve policy of m aking C oom bs, Senior V ice President in charge of available additional inform ation on foreign the Foreign D epartm ent of the Federal R e­ exchange operations from tim e to tim e. The serve Bank of N ew York, and Special M an­ Federal R eserve Bank of N ew York acts as ager, System O pen M arket A ccount. It agent for both the Treasury and the Federal covers the period M arch to Septem ber 1970. O pen M arket C om m ittee of the Federal R e­ Previous reports have been published in the serve System in the conduct of foreign M arch and Septem ber Bulletins of each exchange operations. year beginning with Septem ber 1962. A lthough m ost of the m ajor industrial coun­ Reserve and the U .S. Treasury outstanding tries w ere beset by inflation and dom estic at the beginning of the year w ere alm ost financial strains during the period under re­ fully repaid by the end of June, and since view, the foreign exchange m arkets w ere then the B ank of England has had no generally characterized by quiet and orderly further recourse to U .S. credit facilities. The trading, interrupted only briefly by the B ank of France debt of $200 m illion to the C anadian recourse to a floating rate early U .S. Treasury w as also fully repaid. The in June. Indeed, the very prevalence of in­ B ank of Italy financed heavy reserve losses flationary trends, both here and abroad, in January and February by draw ing $800 left the exchange m arkets in som ething of a m illion on the Federal R eserve sw ap line, quandary as to w hich currencies m ight but this debt has subsequently been fully re­ eventually fare better or w orse. paid, partially by substituting m edium -term So far in 1970 the U.S. balance of pay­ financing through the E uro-dollar m arket. m ents on official account has shifted from A s of the end of A ugust, no credits by the surplus to deficit. V arious policy actions Federal R eserve to foreign central banks taken by the Federal R eserve to relieve the under the sw ap netw ork w ere outstanding stringency of credit conditions in the U nited (T able 1). States resulted in a heavy return flow of M eanw hile, the Federal R eserve found it funds to the E uro-dollar m arket, w hich, in necessary to m ake repeated draw ings on its turn, facilitated the recovery of official re­ sw ap lines w ith the Swiss N ational B ank, the serves in France, G erm any, Italy, and the N ational B ank of Belgium , and the N ether­ U nited K ingdom w here m oney rem ained lands B ank (T able 2 ). Federal R eserve tight. These shifts in the international flow draw ings of $145 m illion of Swiss francs of funds, in response to differential credit that w ere outstanding at the beginning of conditions, w ere reflected in a corresponding 1970 could not be reversed through m arket shift of creditor-debtor relationships in the transactions, as the usual seasonal w eaken­ Federal R eserve sw ap netw ork and related ing of the Swiss franc during the early credit arrangem ents. M ore than $1 billion m onths of the year failed to m aterialize. A c­ of B ank of E ngland debts to the Federal cordingly, the Swiss N ational B ank agreed to Digitized for FRASER 691 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 TABLE 1 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings, or repayments (—) Drawings Drawings Banks drawing on System on System, 1970 on System, Jan. 1, Aug. 31, 1970 1970 July 1— I II August 31 . Bank of England............................................................ ........................... 650.0 ( -650.0 Bank of France....................................................................................................... J +100.0 \ -100.0 Bank of Italy.......................................................................................................... f +800.0 +200.0 -600.0 -400.0 Bank for International Settlements (against German marks)..................... / +i36!o‘’ +77.0 +22.0 \ -136.0 -77.0 -22.0 Total................................................................................................................. 650.0 \ f +1 -8 ,0 8 3 6 6 . . 0 0 + -6 2 7 7 7 7 . . 0 0 -4 + 2 2 2 2 . . 0 0 ) / ...................... sell, in a direct transaction w ith the Federal verted to a standby basis but, as the flow of R eserve, the Swiss francs required to clean funds to Belgium continued, new draw ings up the balance, and the sw ap line reverted w ere m ade by the Federal R eserve during to a standby basis. L ater in the spring new the sum m er m onths for a total currently flows of dollars to Sw itzerland required the outstanding of $95 m illion. reactivation of the sw ap line in M ay, in the Sim ilarly, a Federal R eserve draw ing of form of a $200 m illion draw ing of Swiss $130 m illion in guilders on the N etherlands francs by the Federal Reserve. Through B ank that w as outstanding as of the end of m arket transactions the Federal R eserve 1969 could not be reversed through m arket subsequently repaid $30 m illion of this debt, transactions. A ccordingly, it w as agreed in another $50 m illion was cleared aw ay M ay 1970 to clean up the debt through through a U .S. T reasury sale of gold to the several special transactions, including a U .S. Swiss N ational B ank, and the rem aining Treasury draw ing, of guilders from the IM F $120 m illion w as liquidated in A ugust by together w ith a sm all sale of SD R ’s to the another direct sale of Swiss francs to the N etherlands B ank. H ere again, the flow of Federal R eserve by the Swiss N ational B ank. dollars to the N etherlands persisted through In the case of the B elgian franc, the Fed­ the sum m er m onths, and by Septem ber 10 eral R eserve late in 1969 reactivated its had necessitated new guilder draw ings by the sw ap line w ith the N ational B ank of Bel­ Federal R eserve am ounting to $220 m illion. gium by draw ing $55 m illion of Belgian There w ere no operations in A ustrian schil­ francs, and further draw ings in 1970 in­ lings, C anadian dollars, Japanese yen, M ex­ creased such debt to $130 m illion by early ican pesos, or the Scandinavian currencies. M ay. Since the sw ap line had by then been in A m ong other developm ents during the continuous use for alm ost 6 m onths, the period under review , the Federal R eserve U .S. Treasury undertook to assist the Fed­ sw ap netw ork w as further enlarged to an eral R eserve in fully liquidating its Belgian $11,230 m illion total on M arch 12 as a franc debt by draw ing B elgian francs from result of an increase in the sw ap line w ith the International M onetary Fund (IM F ) the B ank of Italy from $1 billion to $1,250 and by selling a sm all am ount of special m illion (T able 3 ). In A pril the U .S. T reas­ draw ing rights (SD R ’s) to the N ational ury redeem ed at m aturity a 6-m onth Swiss B ank of Belgium . The sw ap line then re­ franc-denom inated certificate of indebted­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 693 ness equivalent to $54.7 m illion held by the M ay 11 the C anadian authorities announced B ank for International Settlem ents (B IS) that they w ould sell a special issue of bills w hile other foreign-currency-denom inated totaling $250 m illion (C anadian). A t the securities w ere rolled over at m aturity, leav­ 4 EXCHANGE RATES: Sept. 1969 to Sept. 1970 ing a total of $1.4 billion equivalent cur­ N.Y. noon offered rates rently outstanding (T able 4 ). N o operations CENTS PER UNIT OF FOREIGN CURRENCY in forw ard m arkets w ere undertaken by 242.00 either the Federal R eserve or the Treasury. 240.00 238.00 CANADIAN DOLLAR 18.1406 The C anadian dollar rose to its effective 18.0044 ceiling of $0.9324 in late D ecem ber 1969 17.8699 and, except for a brief easing in February, 25.1889 27.5482 rem ained at or very near that level through 25.0000 27.3224+ M ay (C hart 1). The strength of the C ana­ 24.8139 27.1003 dian dollar reflected developm ents in both 23.2829 the current and capital accounts of the C a­ nadian balance of paym ents. The trade sur­ plus w idened substantially, as there w as a broad-based increase in exports. In the cap­ ital sector, funds w ere repatriated from the N ew Y ork stock m arket, w hile during the 22.4719 .1612 first quarter C anadian borrow ing abroad re­ m ained heavy. M oreover, relatively high in­ .1600 terest rates resulting from the vigorous anti- .1589 inflationary policies pursued by the C ana­ 27.8358 dian authorities attracted short-term inflows, 27.6243 including som e repatriation of funds previ­ 27.4160 ously placed in the E uro-dollar m arket. 2.0151 As the exchange m arkets becam e increas­ 2.0000 ingly aw are of the strength of the C anadian 1.9851 paym ents position, tow ard the end of A pril 100.000 rum ors began to circulate that the B ank of C anada w ould raise its upper intervention 93.425 point to the full 1 per cent above par allow ed 92.500 by the IM F, or even that the C anadian dol­ lar w ould be revalued. C onsequently, de­ 91.575 9 9 2 1 . . 5 57 0 5 0 SEPT. m and for C anadian dollars surged and the B ank of C anada began to purchase U.S. Black rule indicates par value of currency. dollars on a m ounting scale. Weekly averages of daily rates. Upper and lower boundaries of panels represent official buying and selling rates of dollars against These heavy purchases of foreign ex­ the various currencies. Until the end of May 1970, however, the Bank of Canada had informed the market that its intervention change w ere financed by the draw ing dow n points in transactions with banks were $0.9324 (upper limit) and $0.9174 (lower limit). On May 31, 1970, the Canadian authorities of G overnm ent deposits w ith the chartered announced they would no longer keep the market rate from exceeding the official buying rate of $0.93425, and the boundaries banks. A s the inflow intensified, how ever, of the Canadian dollar curve from that point on are drawn for graphical convenience only, and on a much reduced scale. such deposits began to be depleted, and on * indicates change as of October 26, 1969. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 sam e tim e, the B ank of C anada raised the 2 | CANADIAN DOLLAR: May to Sept. 1970 chartered banks’ m inim um secondary re­ U.S. CENTS PER CANADIAN DOLLAR serve requirem ents from 8 per cent to 9 per 100 cent of deposits. This m ove im m obilized ap­ proxim ately the am ount to be raised by the bill issue. In addition, in an attem pt to re­ duce the inflow of short-term funds, the B ank of C anada announced Vi of a per­ centage point decrease in its discount rate from 8 per cent to 7 Vi per cent. T he C anadian dollar eased very briefly 1 HIGH but then again m oved to the ceiling as a rise 4 AVERAGE NOON RATES I LOW in the forw ard prem ium continued to pro­ vide a hedged incentive for short-term funds 94 to flow into C anada. Tow ard the end of M ay, how ever, w hen the B ank of C anada entered the forw ard m arket both on a sw ap 92 and on an outright basis, the forw ard prem ­ MAY JULY SEPTEMBER ium backed dow n and the spot rate de­ Black rule indicates par value of currency. clined. • indicates rate was at effective ceiling throughout week. U nder these circum stances, the m arket was taken by surprise on Sunday, M ay 31, ginning of the year, of w hich som e $622 w hen Finance M inister B enson announced m illion— including forw ard purchases— had that, for the tim e being, the upper lim it for occurred in M ay alone.) M r. B enson the C anadian dollar w ould not be defended. stated, how ever, that the authorities w ould M r. B enson cited the rapid and accelerating intervene to prevent an excessive apprecia­ accum ulation of reserves and the threat of tion, as w ell as to m aintain orderly condi­ large-scale speculative inflows as reasons tions in the exchange m arket, and that “the for the decision “to perm it som e apprecia­ IM F has also been inform ed of the C ana­ tion of the m arket rate of exchange.” (R e­ dian G overnm ent’s intention . . . to resum e serves had risen $1.2 billion since the be- the fulfillm ent of its obligations under the TABLE 2 FEDERAL RESERVE SYSTEM SWAP ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent Drawings, or repayments (—) System System swap swap Transactions with- drawings, 1970 drawings, Jan. 1, Sept. 10, 1970 1970 July 1— Sept. 10 National Bank of Belgium 55.0 / \ ....... + ... 5 .. 0 ... . . 0 ... + -1 3 4 0 5 . . 0 0 +75.0 } 95.0 Netherlands Bank.............. 130.0 -130.0 +220.0 ] 220.0 Swiss National Bank......... +200.0 145.0 -145.0 -200.0 }................... Total........................... 330.0 -1 + 4 5 5 0 . . 0 0 + -2 2 6 4 0 5 . . 0 0 + -2 2 0 9 0 5 . . 0 0 315.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 695 A rticles of A greem ent of the IM F as soon week. In subsequent w eeks, the rate con­ as circum stances perm it.” In order to pre­ tinued to fluctuate w idely— reaching as vent a rise in the C anadian dollar from be­ high as $0.9710 and as low as $0.9554 ing excessively deflationary, the B ank of (C hart 2 ). In accordance w ith the an­ C anada sim ultaneously cut its discount rate nounced policy, the B ank of C anada in­ by a further V2 of a percentage point, to 7 tervened to dam pen the swings, in particular per cent, w hile the G overnm ent decided not acting to prevent an excessive rise in the to proceed w ith certain consum er credit re­ rate. straints it had planned to introduce. By the end of June the C anadian dollar had settled around $0.9660, as the m arket TABLE 3 began to feel that this m ight be close to the FEDERAL RESERVE RECIPROCAL level at w hich a new parity w ould eventually CURRENCY ARRANGEMENTS In millions of dollars be established. The rate held fairly steady around that level through m id-July, the Amount of facility, daily fluctuations becom ing narrow er and Institution Sept. 10, 1970 less erratic. A t that point, how ever, a new wave of Austrian National Bank.......................................... 200 National Bank of Belgium...................................... 500 Bank of Canada......................................................... 1,000 dem and built up and in just over a m onth National Bank of Denmark.................................... 200 Bank of England....................................................... 2,000 the C anadian dollar reached $0.9850. The Bank of France......................................................... 1,000 advance m ainly reflected the onset of sea­ German Federal Bank............................................. 1,000 Bank of Italy............................................................. 1,250 sonal dem and, a pick-up in long-term bor­ Bank of Japan........................................................... 1,000 Bank of Mexico......................................................... 130 row ings abroad, and an inflow of short­ N Ba e n th k e o rl f a n N d o s r w Ba a n y. k .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 0 0 0 0 term funds resulting from a sharp squeeze Bank of Sweden......................................................... 250 Swiss National Bank................................................ 600 for balances in C anada. M oreover, the rise Bank for International Settlements: in the rate tended to be self-reinforcing in Swiss francs/dollars............................................... 600 Other authorized European currencies/dollars 1,000 that it encouraged an increasing tendency Total..................................................................... 11,230 to cover C anadian dollar com m itm ents. A n­ other factor in the m arket, starting tow ard the end of July, w as the appearance of pro­ The m arket opened on M onday, June 1, fessional traders, m ainly in E uropean banks, in an atm osphere of considerable nervous­ w ho w ould m ove in and out of the C anadian ness, reflecting the prevalent uncertainty as dollar w ithin a single day to take advantage to how high and for how long the C anadian of the w ide fluctuations in the rate, their dollar w ould float. In hectic trading early actions clearly aggravating those fluctua­ that m orning in London, the rate rose nearly tions. Finally, in m id-A ugust there was a to parity w ith the U.S. dollar but then fell back to the $0.97 to $0.98 range. A substan­ burst of dem and for C anadian dollars, as tial dem and for C anadian dollars appeared grain dealers reacted to reports that a sub­ w hen the m arkets opened in N orth A m erica, stantial portion of the U.S. corn crop was prim arily from banks covering short posi­ threatened by blight. L ater in the m onth, as tions, but the B ank of C anada intervened to the m arket calm ed again, the rate m oved prevent a further run-up in the rate. By late lower. O n A ugust 31 the B ank of C anada afternoon dem and had begun to ebb, and announced that in view of both external the rate declined to as low as $0.9655 on and dom estic econom ic developm ents it was June 2. A ctivity then dim inished to abnor­ cutting its discount rate by half a-percentage m ally low levels over the rem ainder of the point to 6 V2 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 GERMAN MARK abroad, an additional reserve requirem ent The decision by G erm an authorities on of 30 per cent w as im posed, effective A pril Septem ber 29, 1969, to suspend tem porarily 1, on increases in the banks’ nonresident liabilities. their intervention at the m ark’s ceiling and The spot m ark rate im m ediately rose the subsequent revaluation of the m ark on O ctober 26 triggered a m assive outpouring sharply in response to this pronounced of funds from G erm any; by the end of the tightening of m onetary policy. Even though year, the G erm an Federal B ank had sold the Federal B ank repeatedly raised its dayto-day intervention points, on A pril 6 it be­ m ore than $6 V2 billion in spot m arket op­ erations. In D ecem ber, a significant factor gan absorbing dollars from the m arket for in the outflow w as the repatriation of funds the first tim e since last fall. A fter easing by U.S. and E uropean corporations to m eet tem porarily at the m onth-end, the m ark be­ gan to clim b again in M ay. B orrow ing balance of paym ents targets or year-end abroad by G erm an banks continued, but on needs. A fter this year-end positioning w as a m ore lim ited scale, w hile borrow ings by com pleted and as E uro-dollar rates declined com m ercial firm s reached m ajor propor­ sharply, the outflow from G erm any cam e tions. W ith this dem and for m arks reinforced to an abrupt halt. T he m ark then firm ed and generally traded above its $0.2710 floor in by fears of additional m easures of m onetary restraint and by rum ors that the Federal January, although it eased back close to B ank m ight raise its official upper interven­ the floor by the end of February. T he Fed­ tion point to the full 1 per cent above par eral R eserve built up its m ark balances in allow ed by the IM F, the spot rate reached February by purchasing $97.6 m illion its ceiling of $0.2754% on M ay 13 and the equivalent of m arks from a foreign central Federal B ank had to purchase a large bank. am ount of dollars. A brief easing occurred In the m eantim e, credit conditions had again in the second half of M ay, but the tightened considerably in G erm any, as the m onetary authorities had allow ed the out­ rate w as rising once m ore by the m onth-end. flow of late 1969 to constrict dom estic The floating of the C anadian dollar on liquidity. In the absence of strong action on June 1 added a new speculative elem ent to the fiscal front, how ever, this liquidity the continuing inflow of short-term funds squeeze proved insufficient to check the in­ stem m ing from interest arbitrage. Thus, even flationary forces under w ay in G erm any and though G erm any’s current account w as un­ the m arket began to anticipate a further dergoing a substantial deterioration, particu­ tightening of m onetary policy. A ccordingly, larly on services, the m ark rem ained ex­ traders bid m ore actively for m arks in early trem ely strong in June. A characteristic pat­ M arch, lifting the spot rate slightly above tern soon em erged, w ith a bunching of pur­ its floor in the process. N evertheless, the chases on W ednesdays w hen value-date con­ m arket w as surprised by the severity of the siderations favor the m ark, follow ed by an m easures announced by the Federal B ank ebbing of dem and in subsequent days. T he C ouncil on M arch 6: the central bank’s dis­ Federal B ank began taking in dollars on count rate w as raised by 1V2 percentage W ednesday, June 3. D uring the follow ing points to IV2 per cent, its “L om bard” rate w eek the m arket w as quite nervous and re­ on advances against securities by half a per­ valuation rum ors, along w ith the approach­ centage point to 9 V2 per cent, and, to dis­ ing m id-June tax period, led to a large-scale courage banks from borrow ing too heavily conversion of foreign borrow ings by G er­ Digitized for FRASER 6— F o re ig n E x c h a n g e O p e ra tio n s 2 0 4 -8 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 697 m an corporations and triggered the m ove­ in an environm ent of declining interest rates m ent into m arks of other funds as well. In abroad. E arly in July, therefore, the G er­ the m ost hectic day since the fall of 1969, m an cabinet decided to tighten fiscal policy, on June 10, the Federal B ank purchased thereby allow ing som e easing of m onetary $640 m illion at the ceiling, w hile the rate restraint. Included am ong the m easures m oved even higher that afternoon in N ew taken then w ere a tem porary suspension of Y ork after the close of business in F rank­ accelerated depreciation allow ances for in­ furt. Even though the im m ediate dem and for dustry and the im position of a refundable m arks spent itself in this flare-up and ac­ 10 per cent surcharge on personal and cor­ tivity was again norm al during the follow ­ porate incom e taxes. Subsequently, effective ing days, the m arket rem ained unsettled and July 16, the Federal B ank reduced its dis­ fearful about the future. In a m ove aim ed at count and L om bard rates by half a percent­ calm ing these fears, the Federal B ank began age point to the still very high levels of 7 offering to sell outright forw ard m arks, and and 9 per cent, respectively. G erm an m oney this action helped im prove m arket atm os­ m arket rates rem ained firm , nevertheless, phere. N evertheless, the underlying dem and ranging above 9 per cent, so that, against a for m arks rem ained strong and w as further background of easing Euro-dollar quota­ intensified tow ard the end of June by G er­ tions, a considerable interest-arbitrage in­ m an com m ercial banks’ positioning to m eet centive in favor of G erm any persisted. A s a increased reserve requirem ents (effective consequence, dem and for m arks dipped but July 1, these w ere raised by 15 per cent). A t briefly, and the central bank again m ade the sam e tim e, relatively high G erm an in­ large gains in the latter part of July. terest rates w ere again pulling in funds from Eventually, how ever, the G erm an m oney the E uro-dollar m arket— w here rates w ere m arket began to respond to the influx of declining in response to the partial lifting of liquidity from abroad. W ith dom estic inter­ R egulation Q ceilings in the U nited States— est rates easing as a consequence, dem and and on July 1 the Federal B ank once m ore for m arks lessened and the central bank’s purchased a large am ount of dollars. dollar purchases tapered off by early A ugust. T he heavy inflows of interest-sensitive By then, how ever, the expansion of dom estic funds m ade it clear that G erm any could not liquidity had becom e excessive and threat­ fight inflation w ith m onetary policy alone ened to thw art the anti-inflationary efforts of TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues, or redemptions (—) Out­ Out­ Issued to— standing, 1970 standing, Jan. 1, Sept. 10, 1970 1970 July 1- I II Sept. 10 German Federal Bank........................................................................................... 11,081.6 •+542.0 539.6 German banks.. .................................................................................................... H35.5 135.5 125.4 -125.4 540.6 541.0 204.4 ......... -54.7 150.0 Total .............................................................................................................. 2,087.6 -667.4 -54.7 1,366.1 1 Includes valuation adjustments subsequent to the revaluation of the German mark. 2 Denominated in Swiss francs. Note.—Discrepancies in totals result from minor valuation adjustments and from rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 the G erm an authorities. C onsequently, on thereafter declined sharply during the first A ugust 12 the Federal B ank C ouncil an­ quarter of 1970 and into A pril, reaching a nounced new m easures of m onetary re­ low of about 8 per cent in m id-A pril. D e­ straint: effective Septem ber 1, increases in posit rates in the U nited K ingdom , on the bank liabilities above the second-quarter other hand, rem ained firm early in the year average w ere subjected to heavy new reserve and then m oved up in February and early requirem ents, and accordingly the additional M arch in response to the m id-M arch tax 30 per cent requirem ent im posed in M arch squeeze. Inflow s during this period w ere re­ on increases in the banks’ nonresident liabili­ flected, in part, in a large rise in the sterling ties w as abolished. W ith tighter dom estic balances of the overseas sterling area as w ell credit conditions in prospect, dem and for as in som e rebuilding of the balances of nonm arks strengthened som ew hat and the Fed­ sterling-area countries. In addition, B ritisheral B ank again had to absorb dollars from based firm s w ith international subsidiaries the m arket. The am ounts w ere relatively apparently w ere bringing funds hom e to m odest, how ever, and the general m arket bolster their liquidity positions. atm osphere at the close of the period was TABLE 5 m uch calm er than in earlier m onths. U.K. INDEBTEDNESS TO U.S. TREASURY AND FEDERAL RESERVE SYSTEM STERLING Amounts outstanding in millions of dollars Sterling recovered strongly throughout the June 1966 Date System sterling Nov. 1967 Total fall of 1969, as the B ritish trade position swap line balances credit line arrangement shifted into surplus and a reversal of earlier 1969 speculative outflow s gathered m om entum . May 13... 1,415 310 350 2,075 C oncurrently, m onetary policy tightened June 30... 1,025 310 350 1,685 Sept. 30... 1,100 310 350 1,760 sharply, and by the year-end spot sterling Dec. 31... 650 271 350 1,271 had reached parity w hile forw ard sterling 1970 discounts had narrow ed substantially. The J M un ar e . 3 31 0... 1 11 5 5 4 225 3 1 7 1 9 5 Aug. 31... - 115 115 B ank of E ngland w as thereby enabled to m ake sizable reserve gains during the fall Note.—Certain special credits from the U.S. Treasury also were liquidated by March 31. m onths, and by the year-end its out­ standing draw ings on the Federal Reserve A s funds flowed into B ritain the spot had been reduced to $650 m illion from the sterling rate m oved w ell above par and the M ay 1969 peak of $1,415 m illion. B ank of England m ade very sizable reserve Even stronger dem and for sterling gains, w hich as before w ere largely devoted em erged during the first 4 m onths of 1970. to the liquidation of official indebtedness. B ritain’s basic paym ents position continued D raw ings on the Federal R eserve sw ap line to run in heavy surplus, and there w ere fur­ w ere cleaned up through repaym ents of ther favorable shifts in com m ercial leads and $300 m illion in January and $350 m illion lags. M oreover, L ondon began to attract in February, thus restoring the $2 billion very heavy inflows of short-term investm ent sw ap line to a fully available standby basis funds, as E uro-dollar rates fell sharply w hile for the first tim e since July 1968. O ver the tight m oney m arket conditions continued to sam e period and continuing into M arch, prevail in the U nited K ingdom . T he 3- very substantial repaym ents w ere m ade to m onth E uro-dollar rate, for exam ple, had other creditors, including the U .S. Treasury reached IIV 2 per cent in m id-D ecem ber but (T able 5). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 699 The exceptionally strong performance of Following the June 18 election, however, sterling during the winter months, and the there was an increase in demand that briefly emergence of a significant interest differen­ carried sterling above par and resulted in tial in favor of sterling, had led the Bank of substantial reserve gains by the British au­ England to reduce its discount rate by half thorities. Consequently, the Bank of Eng­ a percentage point to 7 Vi per cent on March land was able in June to make a further ad­ 5. Nevertheless, inflows to London contin­ vance repayment of credits extended under ued as Euro-dollar rates declined further, the June 1966 sterling balances arrange­ and the bank rate was cut again to 7 per ment. Of this repayment, the share of the cent in mid-April at the time of the an­ Federal Reserve and U.S. Treasury was $39 nouncement of the U.K. budget. The budget million, bringing the total of such repay­ was generally well received by the market ments to the United States since late 1969 and, despite the further reduction in British to $195 million. For the first half of 1970 interest rates, sterling continued in good de­ as a whole, U.K. reserves rose $264 million, mand, enabling the Bank of England to take while net repayments on short-term credit in more dollars. While some of these gains facilities totaled $2,619 million and $269 were added to reserves, most were used to million was repaid to the IMF. pay off debt, including the final $225 mil­ The improvement in the British reserve lion due under the credit line of $350 mil­ position in May and June was accomplished lion extended by the U.S. Treasury in despite rising Euro-dollar rates resulting November 1967. from heavy borrowing from some continen­ Demand for sterling remained strong tal centers and firm demand on the part of through early May, when it was announced U.S. banks. Although Euro-dollar rates lev­ that the British trade position had slipped eled off by mid-June, the interest comparison into small deficit in April. Buying then remained adverse to the United Kingdom tapered off, and the subsequent call on May into early July, and for a few days at the be­ 18 for a general election to be held on June ginning of the month there was heavy 18 brought sterling under some pressure. In switching out of sterling, which pushed the succeeding days, the spot rate declined fairly spot rate down to nearly $2.39 and brought sharply from about $2.4050 to just above the Bank of England into the market in par. Sterling firmed at the month-end, how­ support. ever, and for May as a whole the reserve Euro-dollar rates then moved lower as a position showed a small gain. change in Regulation Q by the Federal Re­ The floating of the Canadian dollar on serve Board, in response to pressures in U.S. June 1 introduced a new element of uncer­ financial markets in late June, led to a sharp tainty into the market and, as the British decline in the Euro-dollar borrowings of elections drew closer, sterling slipped below U.S. banks. Consequently, the pressure on par. The decline in the rate was not pre­ sterling eased and the spot rate held above cipitous, however, and little official support $2.39, despite the threat of a nationwide was required. The announcement on June dock strike. The July 14 announcement of 15 that there had been a second successive a substantial trade deficit for June, followed trade deficit in May, coupled with growing the next day by the dock workers’ vote to concern over wage and price developments strike, resulted in a further decline in the in Britain, put still further pressure on ster­ sterling rate to about $2.3885, but no offi­ ling, and the rate dropped to about $2.3960. cial support was required. Although the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 market remained nervous during the period swap line with the Federal Reserve, drawing of the strike, there was no significant liqui­ $200 million in late January and an addi­ dation of sterling balances and no further tional $600 million during the course of slide in the rate. Indeed, the settlement of February, when pressures intensified follow­ the strike in late July brought renewed de­ ing the resignation of the Italian Govern­ mand for sterling. ment. The market then entered a period of sum­ In the meantime, however, the Italian mer doldrums in August, and through mid­ authorities had started to take a series of month sterling fluctuated on either side of measures to curb the capital outflow, and $2.39 in quiet trading. Late in the month, these were to bring a significant improve­ however, against the background of an ad­ ment in the situation. In mid-February, the verse seasonal swing, concern about the Bank of Italy curtailed the potential for domestic labor situation brought on some large shifts in commercial leads and lags by selling of sterling, and the spot rate declined limiting prepayments of imports to no more to about $2.3830 by month-end. than 30 days and requiring the repatriation of export earnings within 120 days of ship­ ITALIAN LIRA ment. The Bank also discouraged the out­ The Italian lira had been subjected to con­ flow of Italian bank notes by substantially siderable pressure in September 1969 as a tightening procedures for handling such result of speculative outflows to Germany; notes when presented for conversion. At the and the Bank of Italy had drawn $300 mil­ same time, the Italian authorities began en­ lion on its swap facility with the Federal couraging official entities to meet their capi­ Reserve. When the German mark was tal needs by borrowing abroad. Early in allowed to “float” at the end of September, March the Bank of Italy acted to bring Italian residents started to unwind their Italian interest rates into better alignment mark positions and, by mid-November, the with those abroad by raising both its dis­ lira had moved up to par. With this reversal count rate and its rate on advances against in the flow of funds, the Bank of Italy was securities by 1V2 percentage points, to 5Vi able to acquire dollars in the market and per cent, while maintaining the additional' liquidate completely its swap drawing from penalties of IV2 percentage points on the the Federal Reserve. borrowings of banks making large or fre­ Late in November, unfortunately, the quent use of central bank credit. Domestic situation took an abrupt turn for the worse. liquidity conditions then tightened, and A rash of labor strikes crippled industrial Italian interest rates moved up to more com­ production, thereby choking off exports petitive levels. Furthermore, to bolster the while simultaneously pulling in additional Italian authorities’ defenses, on March 12 imports. This worsening of the current ac­ the Federal Reserve’s swap arrangement count was accompanied by increased capital with the Bank of Italy was increased by outflows. As a consequence, the lira came $250 million to $1,250 million and the under heavy selling pressure that persisted U.S. Treasury extended to the Bank of Italy until mid-March, and the Bank of Italy had a special swap facility of $250 million. to extend sizable market support even There was a clear improvement in the though it had allowed the spot rate to fall market during the second half of March, to its floor by early January. To cover mar­ reflecting the formation of a new coalition ket losses the Bank of Italy reactivated its government, tourist travel to Italy over the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 701 Easter holidays, and a tapering-off of capital tion plus lending under the General Ar­ outflows. This stronger tone of the lira per­ rangements to Borrow, was drawn directly sisted until mid-May (even though inter­ from the Fund. In a related precautionary mittent strikes helped keep the trade deficit operation, the Bank of Italy activated for large), and the Bank of Italy was able to the first time its special $250 million swap purchase a moderate amount of dollars in facility with the U.S. Treasury, drawing the market. Furthermore, the Italian elec­ $100 million on July 14 and repaying the tricity authority—ENEL—raised a total of entire amount on July 17. $425 million in the Euro-dollar market in In early August the lira again needed May, and the foreign currency proceeds of support, but a better tone emerged follow­ the borrowings were added to official re­ ing the formation of a new government led serves. With the help of these funds, the by former Finance Minister Emilio Colombo Bank of Italy repaid in May swap drawings on August 6. Indications of the programs to of $600 million, thereby reducing its in­ be proposed by the new government brought debtedness to the Federal Reserve to $200 a strengthening of market confidence in the million. lira, and there was some covering of short Starting around mid-May, however, the positions. Late in the month the Govern­ lira again came under some pressure as a ment announced its new fiscal program, in­ result of new strikes and uncertainty about cluding a hike in gasoline prices, higher ex­ the outcome of the regional and local elec­ cise taxes, and several measures to increase tions of June 7 and 8. Against this back­ productivity. By the end of August the spot ground, there were renewed fears of a de­ rate had risen well above par and the Italian valuation of the lira, and the Bank of Italy authorities had begun to accumulate dollars had to provide sizable support to the mar­ from the market. ket. Such fears were also evident in the forward market, where the discount on the FRENCH FRANC 3-month lira widened from around 1 per In the year that has elapsed since the cent per annum at the end of May to 13 per franc’s devaluation in August 1969, the cent early in July. Then, on July 6, the French authorities have been able to liqui­ Italian Government resigned after less than date completely $1.5 billion in short-term 4 months in office, and the political crisis international indebtedness, to repay in full temporarily intensified the pressure on the the foreign exchange deposits that French lira. commercial banks had been required to hold To help cover its market losses of late at the Bank of France, and to add $952 spring and early summer, the Bank of Italy million to official reserves, while allowing drew an additional $200 million on the the franc rate to move from close to its floor Federal Reserve facility in June, thereby to near its ceiling. This impressive achieve­ raising such swap debt to $400 million. ment, although partly based on drawings on These drawings were fully liquidated by July the IMF totaling $985 million, reflects pri­ 10, as the Italian authorities decided to mo­ marily the dramatic improvement in France’s bilize resources available from the IMF. A balance of payments position since mid- $250 million special claim on the IMF was October 1969—a turnabout from massive converted into dollars by transferring the deficit to substantial surplus. claim to Japan and $463 million more, The rapid recovery of the franc was representing Italy’s super gold tranche posi­ largely attributable to an effective combina­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 tion of French monetary and fiscal policy France in early June raised commercial in support of the devaluation as well as to bank reserve requirements by 1 percentage developments abroad. Beginning in the fall point. In view of the strengthening of the of 1969 the authorities undertook a vigorous franc, travel allowances and some other anti-inflationary program—cutting back limitations on the use of foreign currencies public spending, curbing consumer credit, were relaxed in the spring and in midyear, encouraging savings, and, more broadly, but the main body of the exchange controls moving to a firmly restrictive monetary introduced in the autumn of 1968 remains policy. This stringent program was main­ in effect. The swing into external surplus tained with only minor relaxations, even enabled the authorities to move in mid-1970 after the external situation had turned toward a somewhat less stringent policy around. Second, the speculative flows prior domestically; some quantitative credit con­ to the devaluation were followed after that trols were relaxed, tax and credit restrictions event by opposite movements that contrib­ on the purchase of a number of durable uted to the franc’s strength: leads and lags goods were eased, and some budgetary funds and other short-term flows were reversed, that had been frozen earlier were released. while consumption and imports, which had In order to limit the expansionary effects of risen sharply in anticipation of a devalua­ these measures, however, the authorities tion, receded markedly in the latter part of once again raised reserve requirements by 1969. Third, the subsequent revaluation of 1 percentage point in early July to 7.5 per the German mark reinforced the new parity cent for sight deposits and to 2.5 per cent of the French franc, initially by triggering for time deposits of up to 3 years’ maturity. a reflow of funds out of Germany. Finally, There was a further strengthening of de­ the severe price and wage inflation experi­ mand for the French franc at the end of enced by virtually all industrialized coun­ July, mainly reflecting a bunching of con­ tries helped mitigate the balance of pay­ versions of export receipts prior to the Au­ ments effects of France’s own inflation and gust vacation period, and the spot rate of the additional pressures exerted on do­ reached a new post-devaluation high. In mestic prices as a result of the devaluation. August, the rate eased marginally in an in­ Against this background, the French active market until late in the month when franc strengthened significantly and in Jan­ the Bank of France cut its discount rate by uary moved above par as Euro-dollar rates half a percentage point to IV2 per cent. This began to decline steeply while French mone­ further evidence of official confidence in the tary conditions remained taut. Moreover, recovery of the franc helped bring about a the French trade position was steadily im­ firming in the spot rate during the closing proving and reached approximate balance days of August. by spring. In April, demand for francs in­ During 1970 the Bank of France used its creased markedly as confidence steadily reserve gains to reduce further its interna­ improved, and the Bank of France added tional indebtedness. By the end of April it considerably to its reserves. had fully liquidated its short-term credits The franc maintained its strength in May from foreign central banks. At the same and June, and the Bank of France again time, the Bank of France also cleared away made large dollar purchases, particularly at its debt to the U.S. Treasury under the No­ the month-end. To offset the domestic mone­ vember 1968 facility, repaying the total of tary effects of these inflows, the Bank of $200 million by April 24: $70 million in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 703 February, $55 million in March, and $75 Toward the end of February, monetary million in April. Then, as a result of the conditions again tightened in Switzerland increase in official reserves, France was re­ and, when the franc rose to its ceiling, the quired to make a repayment of its outstand­ Swiss National Bank had to absorb some ing indebtedness to the IMF; this payment, dollars from the market. Following this in­ amounting to $246 million, was made on jection of liquidity into the domestic market, September 2. the franc eased, but in March Swiss com­ mercial banks began to repatriate funds SWISS FRANC from abroad to meet heavy quarter-end re­ In late 1969 and early 1970 the Swiss quirements. The National Bank decided to authorities took a number of steps to com­ accommodate this quarter-end demand bat the inflationary pressures generated in through swaps with the banks (buying dol­ part by an export boom. Late in December lars spot against sale for delivery in early the Government decided to complete its April), in order to prevent the spot rate Kennedy round of tariff cuts during the from running up to the ceiling. By entering spring of 1970 rather than in 1971 and 1972 into $418 million of swaps, the National as originally scheduled. Then in January the Bank forestalled large uncovered spot pur­ National Bank and the commercial banks chases of dollars. After the end of the quar­ agreed, under the existing restrictions on ter, there was no easing in the market as credit expansion, to reduce further the per­ credit remained tight. At this point the missible rate of growth in bank credit dur­ Swiss and U.S. authorities agreed that the ing the first half of 1970. Meanwhile, bank Treasury should redeem at maturity a 6liquidity had been progressively tightening, month Swiss franc-denominated certificate and this squeeze became evident in January of indebtedness equivalent to $54.7 million when the usual seasonal weakening of the held by the BIS. The National Bank conse­ Swiss franc caused by the reversal of year- quently sold the necessary francs to the end flows failed to materialize. Conse­ Treasury against dollars. quently, the Federal Reserve was unable to Underlying credit conditions in Switzer­ acquire through the market the Swiss francs land remained very tight throughout April that were needed to liquidate the System’s and into early May. In view of the pressures swap debt of $145 million to the Swiss Na­ on the Swiss capital market, the three large tional Bank. Swiss banks decided at the end of April to suspend temporarily the placement of new In February, with relative calm prevail­ issues for foreign borrowers. In mid-May a ing in the markets, the Federal Reserve and large repatriation of funds finally eased the the Swiss National Bank agreed that the domestic liquidity situation. This inflow of time had come to clear up the System’s dollars, however, considerably increased the Swiss franc swap debt, which had been out­ Swiss National Bank’s dollar holdings at a standing since October. Consequently, dur­ ing the month the National Bank sold time when they were already large. To pro­ $140.7 million of francs directly to the Sys­ vide cover for some of the most recent dollar tem against dollars. The Federal Reserve accruals, on May 15 the Federal Reserve re­ used these francs and some from balances activated its swap facility with the National to repay the $145 million swap debt, thereby Bank, drawing $200 million equivalent. restoring the swap arrangement to a fully For the rest of May, Swiss monetary con­ available standby basis. ditions were relatively easy, and pressure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 also lessened somewhat in the capital market decided to clear the swap line once again as a result of the temporary suspension of through direct measures. Accordingly, $50 new foreign issues. The Swiss franc rate million equivalent of the swap debt was re­ consequently remained well away from the paid through a U.S. Treasury sale of gold National Bank’s intervention point. to the Swiss National Bank. Then on August The floating of the Canadian dollar on 25, the System purchased $120 million June 1 re-awakened latent market fears that equivalent of francs from the National the Swiss franc would be revalued or allowed Bank and used those francs plus $ 15 million to float. Against this background, there were from balances to restore the swap arrange­ several bursts of demand for francs early in ment to a fully standby basis. June, and on such days the franc rate rose sharply in hectic trading. A full-scale specu­ DUTCH GUILDER lative rush did not materialize, however, and Beginning in late September 1969 there the passage in mid-June of a bill—to be were heavy speculative inflows into the effective in September—requiring Swiss ex­ Netherlands as the market assessed the risk porters to make non-interest-bearing de­ that the guilder might follow a revaluation posits helped ease pressures. When once’ of the German mark. After the German again, in late June, the Swiss National Bank Federal Bank, on September 29, suspended assisted the commercial banks with their its intervention at the mark ceiling, the buy­ midyear liquidity needs by entering into ing of guilders intensified and became in­ $479 million in swaps, the market calmed creasingly heavy through October. By the further. Domestic liquidity conditions never­ time the mark was formally revalued on theless remained relatively tight in July, and October 26 the Netherlands Bank had been the Swiss franc began edging higher. Near forced to absorb $785 million from the the month-end the spot rate was bid up to market. Part of these reserve gains were the ceiling and the National Bank had to used by the Netherlands Bank to repay absorb dollars from the market. Thereafter, $109.7 million in Dutch drawings then out­ demand for Swiss francs lessened and a standing on the swap line with the Federal somewhat easier tone prevailed through Reserve. To provide cover for some of the August. Netherlands Bank’s additional dollar intake, With a view toward repaying the $200 the Federal Reserve in turn reactivated the million swap drawing made in mid-May, the swap facility, drawing the full $300 million Federal Reserve had begun to accumulate equivalent. In addition, the U.S. Treasury modest amounts of Swiss francs, occasion­ made a special 1-week swap of $200 million ally in the market and also directly from the with the Netherlands Bank. Swiss National Bank against Italian lire held Immediately following the revaluation of in balances. (The National Bank has a re­ the mark in late October, the Dutch authori­ current need for lire, arising from remit­ ties made known their decision not to re­ tances made by Italian workers in Switzer­ value the guilder and the spot rate quickly land.) Using such franc balances, on July moved away from the ceiling as speculative 6 the System prepaid $15 million of swap positions began to be unwound. By Novem­ debt to the Swiss National Bank. Addi­ ber 5 the Netherlands Bank had sold slightly tional franc balances were accumulated in more than one-third of the dollars it had July and early August. The Federal Re­ purchased in October. Consequently, the serve and the National Bank at that point U.S. Treasury had no difficulty in repaying Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 705 its $200 million swap, and the Federal Re­ ground, considerable foreign interest devel­ serve repaid $70 million equivalent of its oped in new guilder bond issues being indebtedness on November 6, thereby reduc­ floated in the Dutch capital market. More­ ing its outstanding swap debt in guilders to over, a favorable shift of leads and lags $230 million. Further repayments were developed, and there was a significant capi­ made in November and December, reducing tal inflow in connection with an industrial the System’s outstanding debt in guilders to takeover. Early in July, the spot guilder rate $130 million by the year-end. moved up through par and the Netherlands The guilder remained soft during the first Bank soon began to purchase considerable quarter of 1970, as the Dutch current ac­ amounts of dollars from the market. To count turned seasonally weak and domestic deal with this dollar inflow, the U.S. Treas­ credit conditions eased somewhat, but there ury sold $20 million of gold to the Nether­ was no significant selling pressure and no lands Bank and the Federal Reserve reacti­ opportunity for further reductions in the vated its swap line on July 24, drawing a Federal Reserve swap drawing. By late April total of $75 million equivalent of guilders the guilder was showing signs of renewed in July. The capital inflow intensified in strength and the outlook for further reversal August, and the Federal Reserve drew an of the swap drawing was not promising. additional $145 million, bringing System Since the remaining swap debt had been out­ swap drawings in Dutch guilders to $220 standing for 6 months, the System sought million equivalent. In late August monetary alternative means of repayment. On April conditions eased in the Netherlands and the 29 the Federal Reserve sold German mark guilder market turned quieter. balances directly to the Netherlands Bank to acquire $60 million of guilders. The BELGIAN FRANC guilders were used to reduce swap drawings During the turbulent period preceding the to $70 million. Then, on May 15 the U.S. revaluation of the German mark in October Treasury drew $60 million of guilders from 1969, there were heavy speculative flows the IMF and sold them to the System. At the of funds to Belgium as the market also con­ same time the Treasury sold 10 million sidered the Belgian franc a candidate for SDR’s to the Netherlands Bank, which in revaluation. Although the speculative out­ turn sold $6.8 million of guilders to the Fed­ burst was quelled in late October by a firm eral Reserve. These guilders, plus a small Government statement rejecting revaluation, amount from balances, were used to repay the underlying demand for francs remained the outstanding $70 million drawing, there­ very strong. With the spot rate holding close by restoring the swap line to a fully avail­ to its ceiling, the National Bank absorbed able standby basis. dollars from the market throughout the rest The guilder market entered a new phase of 1969. To provide cover for some of these with the floating of the Canadian dollar, dollar gains, the Federal Reserve reactivated which briefly rekindled some of last autumn’s its swap line with the National Bank, draw­ fears and nervousness in the exchange mar­ ing a total of $55 million equivalent of Bel­ kets. The market’s initial agitation and hec­ gian francs in November and December. tic trading died down by mid-June, but the Buying pressure on the Belgian franc per­ underlying atmosphere remained tense with sisted after the turn of the year, reflecting the guilder once again being regarded as a tight credit conditions domestically and a candidate for revaluation. Against this back­ large surplus on current account. As a con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 sequence, the spot rate held at or near its market periodically during the summer. To ceiling and the National Bank continued to cover the bulk of these reserve gains, the absorb dollars from the market. The Fed­ System reactivated its swap line, drawing eral Reserve provided cover for these inflows $20 million equivalent at the end of June, by further drawings on the swap line equiva­ $55 million in July, and $20 million in lent to $30 million in February, $20 million August, for a total of $95 million currently in March, $10 million in April, and $15 outstanding. million in early May. Federal Reserve in­ debtedness under the swap facility was thus EURO DOLLAR MARKET raised to $130 million by May 5. Tensions in the Euro-dollar market lessened A need for dollars by the Belgian Gov­ considerably during the period under review. ernment made possible a partial repayment Late in 1969, interest rates began an acrossof these drawings when the Belgian National the-board retreat. The 3-month rate, for ex­ Bank purchased $30 million from the Fed­ ample, moved from 11 Vi per cent in mideral Reserve against Belgian francs on May December to 8 per cent by mid-April (Chart 12. At that point it seemed unlikely, how­ 3). During the next 2 months, rates moved ever, that further significant reduction in the up, reaching levels well above 9 per cent remaining indebtedness of $100 million for most maturities, but over the summer could be effected through similar operations months receded once again. or through a reversal of market flows. Since YIELD COMPARISONS the swap line by then had been in continuous 3-MONTH MATURITIES EXCEPT WHERE NOTED use by the Federal Reserve for some 6 months, it was agreed that alternative financ­ ing should be arranged, in keeping with the LONDON principle that use of central bank credit EURODOLLARS should not be unduly prolonged. Accord­ U.K. LOCAL AUTHORITY FRANKFURT ingly, on May 15 the U.S. Treasury drew DEPOSITS INTERBANK LOANS $90 million of Belgian francs from the IMF and sold the francs to the Federal Reserve. At the same time the Treasury sold 10 mil­ CD’S OF lion SDR’s to the Belgian National Bank, U.S. BANKS: 90 179 DAYS which in turn sold $8.8 million of Belgian francs to the Federal Reserve. The System used the francs so acquired, plus a small amount from balances, to repay completely the remaining $100 million swap debt. As had been anticipated, the Belgian Weekly averages of daily rates. franc remained quite firm through the spring Initially, the drop in Euro-dollar rates and summer months, reflecting a strong from their near-record levels reflected the current-account position. In July exagger­ reversal of year-end pressures. The con­ ated reports of the Group of Ten discussions tinued downtrend in rates, however, which on exchange-rate flexibility led to further occurred despite very heavy switching of speculation over a possible revaluation of funds into sterling investments, was mainly the Belgian franc. Consequently, the Na­ attributable to the progressive reduction of tional Bank had to absorb dollars from the Euro-dollar borrowings of U.S. banks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 707 LIABILITIES OF U.S. BANKS risen to well over 9 per cent. This tightening TO FOREIGN BRANCHES of the market reflected in part the liquidity BILLIONS OF DOLL* squeeze in Germany and France, which drew 16 funds into those countries, and the takedown of two large Euro-dollar issues by the Italian electricity authority. More generally, there 14 was a pronounced change in market expecta­ tions, stemming in part from growing fears regarding the liquidity situation in the 12 United States. During this period, U.S. banks’ liabilities to their own foreign branches rose modestly, averaging around 10 $ 12 Vi billion in the second half of May and SEPT. NOV. JAN. MAR. MAY JULY SEPT. 1969 1970 through June. Effective June 24 in a move aimed at Data as of Wednesday of each week. facilitating the refinancing by the banking through their own foreign branches (Chart system of maturing corporate commercial 4). U.S. banks’ takings declined steadily paper borrowings following the failure of from mid-January through the first quarter, the Penn Central Transportation Company, as alternative domestic sources of funds the Board of Governors of the Federal Re­ were being tapped. At first, U.S. banks ob­ serve System suspended Regulation Q in­ tained a steadily rising amount of funds terest rate ceilings on time deposits of through the issuance of commercial paper $ 100,000 or more with maturities of 30 to by affiliated holding companies or subsidi­ 89 days. Euro-dollar rates immediately re­ aries. Then, as U.S. monetary policy moved ceded as the System’s action helped ease toward a stance of less stringent restraint, money market strains and allayed some of and yields on U.S. Treasury securities fell the fears regarding a potential liquidity below the recently increased rate ceilings on crisis in the United States. With the surge CD’s of similar maturities in February and in U.S. banks’ sales of large CD’s that fol­ March, commercial banks were able to in­ lowed the partial suspension of Regulation crease sharply their sales of CD’s to a broad Q ceilings, the banks were able to curtail spectrum of investors. Consequently, out­ sharply their Euro-dollar borrowings through standing Euro-dollar borrowings fell by $2.3 their own overseas branches; such liabilities billion to $12.0 billion between mid-January fell below $11 billion by late July, more and April 1. Indeed, if U.S. banks had not than $4 billion under the November 1969 been reluctant to run their Euro-dollar tak­ peak. Meanwhile, money market conditions ings below reserve-free base levels estab­ also had relaxed appreciably in Germany, lished under an amendment to Regulation following the large inflow of funds to that M, the decline in borrowings and in Euro­ country and the reduction in the German dollar rates might have been more pre­ Federal Bank’s discount rate on July 15. cipitous. Consequently, Euro-dollar rates declined Starting in mid-April, however, the de­ fairly steadily over the summer months, with cline in Euro-dollar rates was reversed, and the 3-month rate falling as low as 7% per by the middle of June most quotations had cent in early September. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of th e F ederal O pen M arket C om m ittee Records of policy actions taken by the Federal Open Market Com­ mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve Bulletin. The record for each meeting includes the votes on the policy deci­ sions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial condi­ tions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the B ulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. Records for the meetings held in 1970 through May 5 were pub­ lished in the B ulletins for April, pages 333-40; May, pages 436-43; June, pages 507-16; July, pages 573-80; and August, pages 627-33. The records for the meetings held on May 26, and June 23, 1970 follow: 708 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC MEETING HELD ON MAY 26, 1970 Authority to effect transactions in System Account. Revised Commerce Department estimates indicated that real GNP had declined in the first quarter of 1970 at an annual rate of 3.0 per cent, rather than at the 1.6 per cent rate estimated earlier. Staff projections still suggested that real GNP would remain about unchanged in the second quarter, and that it would begin to grow again in the second half of the year. Prices and costs were generally continuing to rise at a rapid pace, but recently there had been some indications of moderating tendencies. Common stock prices had dropped sharply and continuously since early April, with the composite index of stocks listed on the New York Exchange down about one-fourth over that interval. In April industrial production declined by about as much as it had risen in March and was approximately 2.5 per cent below its July 1969 peak. Employment in manufacturing was down substantially from March. Total nonfarm payroll employment also declined, in part because of strikes, and the over-all unemployment rate rose to 4.8 from 4.4 per cent in March. Private housing starts fell substantially after 2 months of strong advance. Retail sales increased in April, according to pre­ liminary estimates, and weekly figures suggested that sales in early May were holding at about the April level. Average wholesale prices were now estimated to have remained un­ changed from mid-March to mid-April, as a sharp decline in prices of farm products and foods offset a further advance in prices of indus­ trial commodities. The consumer price index rose considerably further in April. The downward revision in the official GNP figures for the first quarter was attributable mainly to new information indicating that business inventory investment had declined more than previously estimated. As before, the staff projections suggested that inventory investment would fall only a little further in the second quarter, and that it would rise somewhat over the second half of the year—contributing to the resumption of growth in real GNP anticipated then. It was still expected that consumer spending would be sustained by the second-quarter increases in Federal pay and social security benefits and by the elimina­ tion at midyear of the income tax surcharge; also that residential con­ struction outlays would turn up in the second half. However, it now Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 appeared probable that the growth in business spending on new plant and equipment would taper off somewhat more over the course of the year than had been anticipated earlier. Largely for this reason, the staff projection of the rise in real GNP in the second half had been reduced somewhat. The surplus on U.S. merchandise trade, which had improved some­ what in the first quarter, continued in April at about the first-quarter rate. According to tentative estimates, the over-all balance of payments remained in considerable deficit in April and early May. In foreign exchange markets demands for most major foreign cur­ rencies had continued strong in recent weeks. Demands for the Canadian dollar, which were particularly heavy, moderated only briefly after the Bank of Canada reduced its discount rate from 8 to IV2 per cent on May 12; and rumors of a possible upward adjustment in the exchange rate for that currency began to circulate. Conditions in domestic financial markets had remained highly un­ settled in recent weeks amid mounting concern about a possible liquidity crisis. Interest rates on long-term Treasury, corporate, and municipal securities had risen further to new record highs, in part because of a continuing heavy volume of offerings in capital markets and perhaps some increase in liquidity preferences. In short-term markets, rates on Treasury bills had fluctuated over a relatively wide range since early May but had changed little on balance; the 3-month bill rate, at about 7 per cent on the day before this meeting, was 10 basis points above its level of 3 weeks earlier. Attitudes in financial markets generally were being influenced by uncertainties arising from U.S. military operations in Cambodia and their domestic aftermath, including new uncertainties about the prospects for the Government’s anti-inflationary program. In late April and early May, when it appeared that the disturbed conditions in securities markets were jeopardizing the Treasury’s May financing, the System supplied reserves through open market operations more readily than it might otherwise have done. The outcome of the two-part financing remained in doubt until the financing had been com­ pleted. As it turned out, subscriptions to the cash offering of 18-month notes—for which books were open May 5, the day of the preceding meeting of the Committee—totaled only slightly more than the $3.5 billion offered. Consequently, these subscriptions were allotted in full, in contrast to the usual partial allotments. However, in the exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 711 offering—in which holders of securities maturing in mid-May were offered notes of May 1973 or of February 1977—redemptions for cash were much smaller than had been expected. As a result, in the financing as a whole the Treasury raised about $2 billion of new money, con­ siderably more than it had anticipated. For the exchange offering, subscription books were open on May 4-6; and for both parts of the financing, the settlement date was May 15. System open market operations since the May 5 meeting had been conditioned by “even keel” considerations during the final stages of the financing and, more generally, by the desirability of calming market unsettlement. Operations also were influenced by the fact that in May both the money stock and bank credit appeared to be running signifi­ cantly above levels consistent with the Committee’s target growth rates for the second quarter. However, in view of the very sensitive state of the securities markets, no effort was made to attain the degree of firm­ ness in money market conditions that might have been required to restore the monetary aggregates to the targeted growth path. Since the May 5 meeting the Federal funds rate had fluctuated mostly in a range of 7% to 8 Vs per cent, compared with a range of 8 to 81/* per cent in late April and early May. Member bank borrowings averaged about $920 million in the 3 weeks ending May 20, a little below the $960 million average of the preceding 3 weeks. Both the money stock and the bank credit proxy—daily-average member bank deposits—increased substantially from March to April. The money stock expanded at an annual rate now estimated at about 10.5 per cent; the proxy series, after adjustment for some reduction in banks’ use of funds from nondeposit sources, grew at a rate of about 13.5 per cent. According to tentative estimates for May, the money stock was rising considerably more on the average than had been expected earlier, and the adjusted bank credit proxy was declining much less than had been anticipated. Staff analysis suggested that if prevailing money market conditions were maintained the money stock would increase slightly further from May to June and the adjusted bank credit proxy would rise more rapidly, although not so fast as in the previous month. The analysis implied that, if these expectations were realized and if current estimates for May were correct, both aggregates would increase at annual rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

712 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 of about 7 per cent over the second quarter.1 It appeared that some­ what firmer money market conditions than those currently prevailing would be required if the second-quarter growth rates of about 4 per cent—which the Committee earlier had concluded would be appropriate to the underlying economic situation—were to be attained. Looking forward to the third quarter, the analysis suggested that a 4 per cent growth rate in the money stock probably would be associated with more rapid growth in the adjusted proxy series—perhaps at a 7 per cent rate—partly because the Treasury was expected to raise a large volume of new money in July and August. In its discussion of open market policy, the Committee considered the implications both of the uncertainties and the strains that were unsettling financial markets at present and of the underlying economic situation and outlook. The members agreed that moderate growth in money and bank credit remained the appropriate longer-run objective of policy. They concluded, however, that it was necessary at present to give priority to the objective of moderating pressures on financial markets, recognizing that that might temporarily entail higher growth rates in the monetary aggregates than were considered appropriate for the longer run. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting indicates that real eco­ nomic activity declined more than previously estimated in the first quarter of 1970, but little further change is projected in the second quarter. Prices and costs generally are continuing to rise at a rapid pace, although some components of major price indexes recently have shown moderating tendencies. Since early May most long-term interest rates have remained under upward pressure, partly as a result of continued heavy demands for funds and possible shifts in liquidity preferences, and prices of common stocks have declined further. Atti­ tudes in financial markets generally are being affected by the wide­ spread uncertainties arising from recent international and domestic events, including doubts about the success of the Government’s antiinflationary program. Both bank credit and the money supply rose substantially from March to April on average; in May bank credit 1 Calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 713 appears to be changing little while the money supply appears to be expanding rapidly. The over-all balance of payments continued in considerable deficit in April and early May. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to orderly reduction in the rate of inflation, while encouraging the resumption of sustainable economic growth and the attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, in view of current market uncertainties and liquidity strains, open market operations until the next meeting of the Committee shall be conducted with a view to moderating pres­ sures on financial markets, while, to the extent compatible therewith, maintaining bank reserves and money market conditions consistent with the Committee’s longer-run objectives of moderate growth in money and bank credit. Votes for this action: Messrs. Burns, Hayes, Brim­ mer, Daane, Francis, Hickman, Maisel, Mitchell, Robertson, Sherrill, Swan, and Morris. Votes against this action: None. Absent and not voting: Mr. Heflin. (Mr. Morris voted as his alternate.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

714 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 MEETING HELD ON JUNE 23, 1970 Authority to effect transactions in System Account. Information reviewed at this meeting suggested that real economic activity was changing little in the second quarter of 1970 after having declined at a 3 per cent annual rate in the first quarter. Prices and costs generally were continuing to rise at a rapid pace, although some important components of major price indexes recently had shown moderating tendencies. Staff projections suggested that growth in real GNP would resume after midyear—although the increase projected for the second half had again been revised downward somewhat—and that the rate of price advance would slow as the year progressed. Retail sales edged down in May, according to advance estimates, after rising substantially in April. Industrial production declined appreciably in May, and was about 3 per cent below its July 1969 peak. The labor market continued to weaken: the unemployment rate rose to 5.0 per cent, its highest level in more than 5 years; nonfarm payroll employment declined significantly; and the factory workweek was shortened slightly further. Some of the recent reductions in output and employment were attributable to the effects of strikes in the trucking industry and elsewhere. Average wholesale prices increased somewhat from mid-April to mid-May, following no change in the month ending in mid-April. In both months prices of industrial commodities advanced and prices of farm products and foods declined. The consumer price index continued to rise at a rapid rate in May. The staff estimate that real GNP would change little in the second quarter was based mainly on the expectation that inventory invest­ ment would level out following the substantial reduction earlier in the year. It now appeared that growth in consumer spending in the second quarter would remain close to the first-quarter rate, and that the unusually large rise in disposable income resulting from retroac­ tive increases in Federal pay and social security benefits would be reflected in a sharply higher rate of personal saving. With respect to the outlook for the second half of the year, the increases projected earlier for both inventory investment and final sales had been revised downward somewhat. Among major categories Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 715 of final sales, it was now expected that State and local government outlays would rise somewhat less than earlier projections had sug­ gested and that business fixed investment would turn down in the fourth quarter instead of leveling off. It was still anticipated that Federal expenditures would decline further, that consumer spending would continue upward at a moderate rate, and that residential construction outlays would turn up later in the year. The U.S. balance of payments was in very heavy deficit in April and May, according to preliminary data. Because there was a net increase in Euro-dollar borrowings by U.S. banks over these 2 months, the deficit on the official settlements basis was not quite so large as that on the liquidity basis. In foreign exchange markets the major development in recent weeks had been the decision by the Canadian Government, effective June 1, to allow the exchange rate for the Canadian dollar to float temporarily. This action, which was coupled with a reduction in the Bank of Canada’s discount rate from IV2 to 7 per cent, followed very strong gains in Canadian reserves since the beginning of the year. Reaction to the Canadian move tended to add to demands for certain other currencies, including the German mark—which was already in strong demand partly as a consequence of tightness in German credit markets. Tight credit conditions in Germany also were exerting upward pressure on Euro-dollar interest rates in June. Conditions in domestic financial markets had been highly unset­ tled at the time of the May 26 meeting of the Committee. During the following week they calmed considerably, and yields on long-term Treasury, corporate, and municipal bonds moved down from their late-May peaks. Contributing to the improvement were: the partial recovery of common stock prices following the sharp, sustained de­ cline that had been under way since early April; the sizable volume of Treasury notes and bonds, as well as bills, purchased by the Federal Reserve; and some temporary abatement of the heavy flow of new corporate and municipal security offerings, partly as a result of cancellations and postponements of previously scheduled issues. The calendar of new offerings was still substantial, however, and a resumption of upward pressures on long-term interest rates carried corporate yields to new peaks in mid-June. Market conditions re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

716 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 mained sensitive throughout the period, and the prevailing uncer­ tainties were aggravated a few days before this meeting when a major railroad corporation indicated that it was insolvent and was unable to pay off maturing commercial paper. In short-term markets, interest rates on commercial paper had advanced somewhat recently, and investors in such paper reportedly were becoming increasingly selective. However, most other short­ term rates had declined in recent weeks. The market rate on 3-month Treasury bills, at about 6.55 per cent on the day before this meeting, was approximately 45 basis points below its level of 4 weeks earlier. System open market operations since the preceding meeting had been directed mainly at moderating pressures in financial markets. For this purpose the System provided reserves actively, buying Treasury securities or arranging repurchase agreements on most days in the interval. The effective rate on Federal funds was held for the most part at 8 per cent or below. Average member bank borrowings varied over a wide range, from a high $1.2 billion in the statement week ending June 3 to a low of $650 million 2 weeks later. Earlier on the day of this meeting the Board of Governors had amended Regulation Q, effective the next day, to suspend interest rate ceilings on CD’s and other single-maturity time deposits in denominations of $100,000 and over with maturities of 30 through 89 days.1 This action was taken in recognition of the possibility that current uncertainties in financial markets, including the commercial paper market, could result in unusual demands upon commercial banks for short-term credit accommodation. During the course of May the outstanding volume of large-denomination CD’s of all maturities had declined slightly. Growth in such CD’s had been substantial from early February through mid- April, but had slowed considerably in the latter part of April when increases in interest rates on competitive short-term securities re­ duced the relative attractiveness of CD’s offered at then-prevailing ceiling rates. Inflows of other types of time and savings funds at banks—and at nonbank thrift institutions—had remained sizable in May. 1 The ceiling rates on such deposits had been 6!4 and 6V2 per cent for maturities of 30-59 days and 60-89 days, respectively. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 717 The annual rate of increase in the money stock from April to May was about 4 per cent—less than half the rate estimated at the time of the May 26 meeting and even further below the rapid rates experienced in March and April. According to tentative estimates, the money stock was declining slightly on the average in June. These estimates implied that the annual rate of growth of money over the second quarter 2 would be about 4.5 per cent, compared with 3.8 per cent in the first quarter. The bank credit proxy—daily-average member bank deposits— was about unchanged on the average in May after adjustment for an increase in banks’ use of funds from nondeposit sources. In March and April the adjusted proxy series had risen considerably. Tenta­ tive estimates suggested that the adjusted proxy series was expanding at a substantial rate in June; and that its growth over the second quarter would be at an annual rate of about 7 per cent, following the 0.5 per cent increase of the first quarter. Staff analysis suggested that if prevailing money market conditions were maintained the money stock would increase at an annual rate of about 5 per cent over the third quarter—growing somewhat faster than this from June to July and then slowing as the quarter pro­ gressed. It was expected that growth in time deposits—and, conse­ quently, in the bank credit proxy—would be stimulated by the Board’s suspension of Regulation Q ceiling rates on large-denomina­ tion CD’s of less than 90 ^ days maturity. According to a rough estimate presented at the meeting, the adjusted proxy series might grow in the third quarter at an annual rate of about 9 per cent. It was noted, however, that any such estimates were highly uncertain in part because of the difficulties of foreseeing the extent to which credit flows would be shifted to banking channels from the market. The Committee concluded that uncertainties and strains in finan­ cial markets remained sufficiently great to warrant giving continued priority in open market operations to the objective of moderating pressures in those markets. The members also decided that, to the extent compatible with that course, operations should be directed at fostering moderate growth in money and bank credit in the longer 2 Calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

718 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 run—including growth in money over the third quarter at about the 5 per cent annual rate indicated by the analysis noted above. It was agreed that more rapid growth in bank credit than contemplated earlier would not necessarily be inconsistent with the Committee’s longer-run objective; to the extent that the Board’s Regulation Q action resulted simply in a shift of credit flows from market to bank­ ing channels, it would not involve an increase in over-all credit flows. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real eco­ nomic activity is changing little in the current quarter after declining appreciably earlier in the year. Prices and costs generally are con­ tinuing to rise at a rapid pace, although some components of major price indexes recently have shown moderating tendencies. Since late May market interest rates have shown mixed changes following earlier sharp advances, and prices of common stocks have recovered part of the large decline of preceding weeks. Attitudes in financial mar­ kets continue to be affected by uncertainties and conditions remain sensitive, particularly in light of the insolvency of a major railroad. In May bank credit changed little and the money supply rose mod­ erately on average, following substantial increases in both measures in March and April. Inflows of consumer-type time and savings funds at banks and nonbank thrift institutions have been sizable in recent months, but the brief spring upturn in large-denomination CD’s outstanding at banks has ceased. The over-all balance of pay­ ments was in heavy deficit in April and May. In light of the fore­ going developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to orderly reduc­ tion in the rate of inflation, while encouraging the resumption of sustainable economic growth and the attainment of reasonable equi­ librium in the country’s balance of payments. To implement this policy, in view of persisting market uncertainties and liquidity strains, open market operations until the next meeting of the Committee shall continue to be conducted with a view to moderating pressures on financial markets. To the extent compatible therewith, the bank reserves and money market conditions main­ tained shall be consistent with the Committee’s longer-run objective of moderate growth in money and bank credit, taking account of the Board’s regulatory action effective June 24 and some possible conse­ quent shifting of credit flows from market to banking channels. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 719 Votes for this action: Messrs. Burns, Brimmer, Daane, Francis, Heflin, Hickman, Maisel, Mitchell, Robertson, Sherrill, Swan, and Treiber. Votes against this action: None. Absent and not voting: Mr. Hayes. (Mr. Treiber voted as his alternate.) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions AMENDMENTS TO DEFENSE “(B) a copy of such certification, together PRODUCTION ACT with a detailed justification thereof, is transmitted The Defense Production Act of 1950 (Section to the Congress and to the Committees on Bank­ 301 of which is the basis for guarantees of loans ing and Currency of the respective Houses at least for defense production), which would have expired ten days prior to the exercise of that authority June 30, 1970, was amended (1) by Joint Resolu­ for such use.” tions approved by Congress (a) June 30, 1970 (Public Law 91-300), so as to continue in force un­ til close of July 30, 1970, and (b) August 1, 1970 RULES REGARDING DELEGATION OF AUTHORITY (Public Law 91-371), so as to continue in force until close of August 15, 1970, and (2) by Act The Board of Governors, effective August 25, of Congress approved August 15, 1970 (Public 1970, amended its Rules Regarding Delegation of Law 91-379), so as to continue in force until close Authority to delegate to a Board member authority of June 30, 1972. to grant specific consent to certain stock acquisi­ Public Law 91-379, among other things, also tions by Edge corporations. This delegation ex­ amended Section 301 of the Defense Production pands the delegation approved by the Board Jan­ Act by setting certain limitations on the guarantee­ uary 7, 1969. The text of the amendment reads as ing agencies with respect to loan guarantees. The follows: text of this amendment is as follows: AMENDMENT AN ACT Effective August 25, 1970, subparagraph (2) of To amend the Defense Production Act of 1950, and section 265. la (a) is amended to read as follows: for other purposes. SECTION 265.1a—SPECIFIC FUNCTIONS Be it enacted by the Senate and House of Repre­ sentatives of the United States of America in Congress DELEGATED TO BOARD MEMBERS assembled, (a) Any Board member designated by the Chair­ man is authorized under sections 25 and 25(a) of TITLE I—DEFENSE PRODUCTION ACT the Federal Reserve Act and Parts 211 and 213 of AMENDMENTS this chapter (Regulations K and M ): § 104. Loan guarantees Section 301 of the Defense Production Act of (2) To grant specific consent to the acquisition, 1950 (50 U.S.C. App. 2091) is amended by adding either directly or indirectly, by a member bank or at the end thereof a new subsection as follows: an Edge or Agreement corporation of stock of (1) “(e) (1) Except with the approval of the Con­ a company chartered under the laws of a foreign gress, the maximum obligation of any guarantee­ country or (2) a company chartered under the laws ing agency under any loan, discount, advance, or of a State of the United States that is organized commitment in connection therewith, entered into and operated for the purpose of financing exports under this section shall not exceed $20,000,000. from the United States, provided that such acquisi­ “(2) The authority conferred by this section shall tion does not result, either directly or indirectly, in not be used primarily to prevent the financial in­ the acquisition by such bank or corporation of effec­ solvency or bankruptcy of any person, unless tive control of any such company (other than a “(A) The President certifies that the insol­ company performing nominee, fiduciary, or other vency or bankruptcy would have a direct and banking services incidental to the activities of a for­ substantially adverse effect upon defense pro­ eign branch or affiliate of such bank or corpora­ duction; and tion); and to approve any such acquisition that 720 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

may exceed the limitations in section 25(a) of the SECTION 204.5—RESERVE REQUIREMENTS Federal Reserve Act based on such a corporation’s (a) Reserve percentages. Pursuant to the provi­ capital and surplus. sions of section 19 of the Federal Reserve Act and § 204.2(a) and subject to paragraph (c) of this RESERVES OF MEMBER BANKS section, the Board of Governors of the Federal The Board of Governors, effective September 17, Reserve System hereby prescribes the following 1970, amended section 204.1(f) of Regulation D, reserve balances which each member bank of the “Reserves of Member Banks”, and effective Octo­ Federal Reserve System is required to maintain ber 1, 1970, amended section 204.5, the Supple­ on deposit with the Federal Reserve Bank of its ment to Regulation D. The main purpose of the district: former amendment is to maintain the effectiveness (1) If not in a reserve city— of the reserve requirements of Regulation D by (1) 3 per cent of (A) its savings deposits and (B) applying those requirements to funds received by its time deposits, open account, that constitute de­ a member bank as the result of issuance of obliga­ posits of individuals, such as Christmas club ac­ tions (commonly described as commercial paper) counts and vacation club accounts, that are made by an affiliate. The amendment to the Supplement under written contracts providing that no with­ decreases by 1 percentage point the ratio of reserves drawal shall be made until a certain number of that must be maintained by a member bank against periodic deposits have been made during a period its time deposits in excess of $5 million. The text of of not less than 3 months; and the amendments reads as follows: (ii) 3 per cent of its other time deposits up to $5 million, plus 5 per cent of such deposits in AMENDMENTS TO REGULATION D excess of $5 million; and (iii) 12V2 per cent of its net demand deposits Effective September 17, 1970, section 204.1(f) up to $5 million, plus 13 per cent of such deposits is amended by adding the following sentence at in excess of $5 million. the end thereof: (2) If in a reserve city (except as to any bank located in such a city which is permitted by the SECTION 204.1—DEFINITIONS Board of Governors of the Federal Reserve Sys­ tem, pursuant to § 204.2(a)(2), to maintain the * * * * reserves specified in subparagraph (1) of this para­ (f) Deposits as including certain promissory graph)— notes and other obligations. (i) 3 per cent of (A) its savings deposits and (B) its time deposits, open account, that constitute de­ 5$C 5;C ^ v *1* posits of individuals, such as Christmas club ac­ counts and vacation club accounts, that are made For the purposes of this Part, “deposits” of a under written contracts providing that no with­ member bank also include the liability of a mem­ drawal shall be made until a certain number of ber bank’s affiliate, as defined in section 2 of the periodic deposits have been made during a period Banking Act of 1933 (12 U.S.C. 221a(b)), on of not less than 3 months; and any promissory note, acknowledgment of advance, (ii) 3 per cent of its other time deposits up to due bill, or similar obligation (written or oral), $5 million, plus 5 per cent of such deposits in with a maturity of 7 years or less, to the extent excess of $5 million; and that the proceeds are used for the purpose of (iii) 17 per cent of its net demand deposits up supplying funds to the bank for use in its bank­ to $5 million, plus UV2 per cent of such deposits ing business, or to maintain the availability of in excess of $5 million. such funds, except any such obligation that, if it had been issued directly by the member bank, * ❖ * * * would not constitute a deposit in view of excep­ INTERPRETATION OF REGULATION D tions (1) and (2), above. BORROWINGS BY BANK AFFILIATES AS SUPPLEMENT TO REGULATION D DEPOSITS Effective October 1, 1970, section 204.5(a) is Effective September 17, 1970, the Board of amended to read as follows: Governors has amended § 204.1(f) to apply the 721 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

722 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 rules governing member bank reserve require­ (3) A corporation that is majority-controlled ments (Regulation D) to funds received by mem­ by a company that also majority-controls a mem­ ber banks as the result of issuance of obligations ber bank proposes to acquire $10 million by the by affiliates of the bank, including obligations sale of 90-day $100,000 promissory notes and use commonly described as commercial paper. The the proceeds to acquire all of the automobile loans following examples illustrate the effect of the of the bank. The bank will thereupon cease to en­ amendment: gage in that type of lending. The amendments (1) A corporation that controls a majority of apply to an affiliate’s obligations issued to finance the stock of a member bank establishes and ac­ such a reorganization, even though the shift of quires a majority of the stock of another corpora­ operations from the bank is on a one-time basis. tion. That corporation proposes to acquire $10 The funds obtained by the bank may be used by million by the public sale on September 1 of it to expand its remaining lending activities, and promissory notes in amounts of $100,000 or more the Board considers that such funds should be with a maturity of 90 days and to use $5 million subject to reserve requirements at least as long as to acquire, on September 1, interests in loans the affiliate holds the assets acquired from the made by the bank, $3 million of which will mature bank. in 90 days and $2 million of which will mature in 180 days. Under the amendment to Regulation D, ORDERS UNDER BANK MERGER ACT $5 million of the notes will become subject, on MARINE MIDLAND GRACE TRUST September 17, to a 5 per cent reserve requirement COMPANY OF NEW YORK (assuming the member bank has other time de­ posits subject to § 204.5(a) of $5 million), which In the matter of the application of Marine will continue as long as, and to the extent that, Midland Grace Trust Company of New York for funds of the affiliate are used to maintain the approval of merger with The Community Bank. availability of funds to the bank. (2) If, on September 15, the affiliate described Order Approving Merger of Banks in the preceding paragraph sells to a third person There has come before the Board of Governors, $1 million of the 90-day loans, the bank may there­ pursuant to the Bank Merger Act (12 U.S.C. upon reduce its deposits subject to time deposit 1828(c)), an application by Marine Midland reserve requirements by $1 million. If, on Novem­ Grace Trust Company of New York, New York, ber 1, $1 million of the affiliate’s funds are again New York, a State member bank of the Federal used to purchase from the bank notes maturing in Reserve System, for the Board’s prior approval of 45 days, the bank must add back $1 million to its the merger of that bank and The Community Bank, deposits subject to time deposit reserve require­ Lynbrook, New York, under the charter and name ments, even though the affiliate does not issue ad­ of Marine Midland Grace Trust Company of New ditional obligations. (If, between the sale of notes York. As an incident to the merger, the three on September 15 and the additional purchase on offices of The Community Bank would become November 1, the affiliate places the idle funds in a branches of the resulting bank. Notice of the pro­ checking account with the bank, the usual demand posed merger, in form approved by the Board, deposit reserve requirement applies instead, for that has been published pursuant to said Act. period.) If, upon maturity on November 30 of the Upon consideration of all relevant material in affiliate’s $5 million of obligations, the affiliate the light of the factors set forth in said Act, in­ extends $1 million thereof for 60 days and $2 cluding reports received pursuant to the Act on the million for 90 days, the $1 million is subject to competitive factors involved in the proposed reserves only for 16 days—until the maturity of merger, the 45-day loans—unless additional funds are chan­ It is hereby ordered, for the reasons set forth neled to the bank or repayments on the loans in the Board’s Statement of this date, that said ap­ maturing in that time are deferred. If, on January plication be and hereby is approved, provided that 1, a portion of the $2 million 180-day loans is pre­ said merger shall not be consummated (a) before paid, the amount of such prepayments will reduce the thirtieth calendar day following the date of the amount of the affiliate’s obligations that are this Order or (b) later than three months after subject to reserves, unless additional funds are the date of this Order unless such period is ex­ channeled to the bank. tended for good cause by the Board or by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 723 Federal Reserve Bank of New York pursuant to 19 offices in this area; five of the other banks are delegated authority. large New York City-based institutions. By order of the Board of Governors, August 13, The nearest office of Marine Grace to Com­ 1970. munity Bank are its branches in central Queens Voting for this action: Chairman Burns and Gov­ County and in Jericho, which are, respectively, 12 ernors Robertson, Mitchell, Daane and Maisel. Ab­ and nine miles distant; numerous banking alterna­ sent and not voting: Governors Brimmer and Sher­ tives intervene. The proposed Carle Place branch rill. (Signed) Kenneth A. Kenyon, of Marine Grace will be five miles northeast of Deputy Secretary. West Hempstead, and separated from the latter by [seal] a congested residential and commercial region. The nearest office of Marine Tinker to an office of Community Bank is at Brentwood, thirty miles east STATEMENT of Lynbrook. Marine Midland Grace Trust Company of New The proposed merger would not eliminate any York, New York, New York (“Marine Grace”), meaningful existing competition. State law permits with total deposits of $1.7 billion, has applied, de novo entry into Nassau County by New York pursuant to the Bank Merger Act (12 U.S.C. City-based banks, but the home-office-protection 1828(c)), for the Board’s prior approval of the % feature of State law precludes Marine Grace from merger of that bank with The Community Bank, establishing a new branch in Lynbrook. The pro­ Lynbrook, New York (“Community Bank”), which posed merger would open Lynbrook to de novo has total deposits of $22.2 million.1 The banks entry by other banks. would merge under the charter and name of The effect of the merger on competition would Marine Grace, which is a member of the Federal be no more than slightly adverse. Reserve System. As an incident to the merger, the Financial and managerial resources and pros­ three offices of Community Bank would become pects. The banking factors with respect to each of branches of Marine Grace, increasing the number the banks proposing to merge are satisfactory, as of its authorized offices to 22. they would be with respect to the resulting bank. Competition. Marine Grace, the largest of 12 Convenience and needs of the community. It bank subsidiaries of Marine Midland Banks, Inc., does not appear that there is any important need Buffalo, New York (“Marine Midland”), a regis­ for banking services in the area served by Com­ tered bank holding company, operates its head munity Bank that is not being met with reasonable office and 16 branches in New York City; the convenience. However, the proposed merger would bank also operates a branch in Jericho, Nassau provide a convenient alternative source of full County, and has received approval to open a banking services for the customers of Community branch in Carle Place, also in Nassau County. Bank, and open the Lynbrook community to de Marine Grace is the eighth largest bank in New novo branching. York City. The 12 banks controlled by Marine Summary and conclusion. In the judgment of Midland hold 6 per cent of the total bank deposits the Board, the effect of the proposed merger on in the State, making the holding company the competition would be no more than slightly ad­ State’s seventh largest banking organization. With verse and would be offset by benefits to the banking the exceptions of Marine Grace and Marine Mid­ convenience and needs of the area served by Com­ land Tinker National Bank, East Setauket, Suffolk munity Bank. County (“Marine Tinker”), Marine Midland’s Accordingly, the Board concludes that the ap­ bank subsidiaries are located in upstate New York. plication should be approved. Community Bank operates its head office and a drive-in branch in Lynbrook and a branch in West GIRARD TRUST BANK Hempstead; the bank derives the bulk of its busi­ In the matter of the application of Girard Trust ness from these communities and from East Rock- Bank for approval of assumption of liabilities of away, Rockville Centre, Maiverne and Valley City Bank of Philadelphia. Stream, all of which are in southwestern Nassau County. Community Bank with 7.5 per cent of the Order Approving Assumption of Bank deposits, is the smallest of nine banks that operate Liabilities There has come before the Board of Governors, 1 Figures are as of December 31, 1969. pursuant to the Bank Merger Act (12 U.S.C. 1828 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

724 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 (c)), an application by Girard Trust Bank, Phila­ that an emergency situation exists, which the delphia, Pennsylvania (“Girard Trust”), a member present application is intended to remedy, in order State bank of the Federal Reserve System, for the to safeguard depositors of City Bank. Board’s prior approval of that bank’s acquisition of The Board has considered all relevant material assets and assumption of deposit liabilities of City contained in the record in the light of the factors Bank of Philadelphia, Philadelphia, Pennsylvania set forth in the Act, and concludes that such anti­ (“City Bank”), which is under the receivership of competitive effects as may be attributable to con­ the Secretary of Banking of the State of Pennsyl­ summation of the transaction would be clearly vania. As an incident to the transaction, the sole outweighed in the public interest by the considera­ office of City Bank would become an office of tions supporting and requiring the aforementioned Girard Trust. finding. Any disposition of the application other Published notice of the proposed acquisition of than its approval on a basis that will not delay its assets and assumption of liabilities and requests for consummation would be inconsistent with the best reports on the competitive factors involved therein interests of depositors of City Bank. have been dispensed with as authorized by the It is hereby ordered, on the basis of the find­ Bank Merger Act. ings summarized above, that said application be Girard Trust ($1.7 billion deposits) and City and hereby is approved, and that the proposal Bank ($9.7 million deposits) are both located in shall be consummated immediately, unless such Philadelphia, Pennsylvania. City Bank’s only bank­ period is extended for good cause by the Board, or ing office was closed for insolvency by Pennsyl­ by the Federal Reserve Bank of Philadelphia pur­ vania State banking authorities and, as noted suant to delegated authority. above, is under receivership of the Secretary of By order of the Board of Governors, September Banking of the State of Pennsylvania. On the basis 11, 1970. of information before it, including communications (Signed) Kenneth A. Kenyon, with the Secretary of Banking and the Federal Deputy Secretary. Deposit Insurance Corporation, the Board finds [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 725 ORDERS UNDER SECTION 3 OF BANK HOLDING tional Bank at Lake Shore, Jacksonville (60 per COMPANY ACT cent); The Florida National Bank at Lakeland, Lake­ land (66 per cent); Florida First National Bank at FLORIDA NATIONAL BANKS OF Madison, Madison (62 per cent); The Florida Na­ FLORIDA, INC., tional Bank and Trust Company at Miami, Miami JACKSONVILLE, FLORIDA (86 per cent); Florida Northside Bank of Jackson­ ville, Jacksonville (70 per cent); Florida First Na­ In the matter of the application of Florida Na­ tional Bank at Ocala, Ocala (65 per cent); Florida tional Banks of Florida, Inc., Jacksonville, Florida, First National Bank at Opa-Locka, Opa-Locka (87 for approval of action to become a bank holding per cent); The Florida National Bank at Orlando, company through the acquisition of voting shares Orlando (66 per cent); The Florida First National of 30 banks in the State of Florida. Bank at Pensacola, Pensacola (73 per cent); The Florida National Bank at Perry, Perry (60 per Order Approving Action to Become cent); Florida First National Bank at Port St. Joe, a Bank Holding Company Port St. Joe (80 per cent); The Florida National There has come before the Board of Governors, Bank at St. Petersburg, St. Petersburg (63 per pursuant to section 3(a)(1) of the Bank Holding cent); Florida Bank at Starke, Starke (62 per Company Act of 1956 (12 U.S.C. 1842(a)(1)) cent); Florida First National Bank at Vero Beach, and section 222.3(a) of Federal Reserve Regula­ Vero Beach (71 per cent); Florida National Bank tion Y (12 CFR 222.3(a)), an application by & Trust Company at West Palm Beach, West Palm Florida National Banks of Florida, Inc., Jackson­ Beach (69 per cent). ville, Florida, for the Board’s prior approval of ac­ As required by section 3(b) of the Act, the tion whereby Applicant would become a bank Board gave written notice of receipt of the applica­ holding company through the acquisition of voting tion to the Comptroller of the Currency and the shares of 30 banks located in the State of Florida. Florida Commissioner of Banking, and requested In the case of each of the banks, Applicant pro­ their views and recommendations. The Comptroller poses to acquire all shares of such bank now owned offered no objection to the proposal, and the Com­ by the duPont Trust, a registered bank holding missioner recommended approval of the proposal company, and such additional shares as may be as it relates to banks under his supervision. tendered pursuant to an identical offer to be made Notice of receipt of the application was pub­ to all minority shareholders of such bank. The lished in the Federal Register on June 19, 1970 banks involved, and the minimum percentage of (35 Federal Register 10123), providing an oppor­ shares proposed to be acquired, are as follows: tunity for interested persons to submit comments Florida National Bank at Arlington, Jacksonville and views with respect to the proposed transaction. (70 per cent); Florida National Bank at Bartow, A copy of the application was forwarded to the Bartow (71 per cent); Florida First National Bank United States Department of Justice for its con­ at Belle Glade, Belle Glade (54 per cent); Florida sideration. The time for filing comments and views First National Bank at Brent, Pensacola (68 per has expired and all those received have been con­ cent); The Florida Bank at Bushnell, Bushnell (58 sidered by the Board. per cent); Florida Bank at Chipley, Chipley (63 It is hereby ordered, for the reasons set forth per cent); Florida National Bank at Coral Gables, in the Board’s Statement of this date, that said ap­ Coral Gables (62 per cent); Florida Bank & Trust plication be and hereby is approved, provided that Company at Daytona Beach, Daytona Beach (51 the action so approved shall not be consummated per cent); Florida Bank at DeLand, DeLand (61 (a) before the thirtieth calendar day following the date of this Order or (b) later than three months per cent); Florida Dealers and Growers Bank, after the date of this Order, unless such period is Jacksonville (60 per cent); The Florida First Na­ extended for good cause by the Board, or by the tional Bank at Fernandina Beach, Fernandina Federal Reserve Bank of Atlanta pursuant to dele­ Beach (87 per cent); Florida Bank at Fort Pierce, gated authority. Fort Pierce (60 per cent); The Florida National Bank at Gainesville, Gainesville (85 per cent); By order of the Board of Governors, August 13, The Florida National Bank at Jacksonville, Jack­ 1970. sonville (51 percent); Florida First National Bank Voting for this action: Chairman Burns and Gov­ at Key West, Key West (59 per cent); Florida Na­ ernors Robertson, Mitchell, Daane, and Maisel. Ab­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

726 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 sent and not voting: Governors Brimmer and Sher­ Minimum rill. Name of Per Cent to Deposits Proposed Bank be Acquired {Millions) (Signed) Kenneth A. Kenyon, Deputy Secretary. The Florida National Bank at Lakeland Lakeland (“ Lakeland Bank”) 66 38.3 Florida First National Bank at Madison [seal] Madison (“Madison Bank”) 62 8.2 The Florida National Bank and Trust Company at Miami Miami (“Miami Bank”) 86 171.6 Statement Florida Northside Bank of Jacksonville Jacksonville (“Northside Bank”) 70 7.6 Florida National Banks of Florida, Inc., Jack­ Florida First National Bank at Ocala Ocala (“Ocala Bank”) 65 23.7 sonville, Florida (“Applicant”), has filed with the Florida First National Bank at Opa-Locka Opa-Locka (“Opa-Locka Bank”) 87 6.1 Board, pursuant to section 3(a)(1) of the Bank The Florida National Bank at Orlando Orlando (“Orlando Bank”) 66 61.7 Holding Company Act of 1956, an application for The Florida First National Bank at Pensacola, Pensacola (“Pensacola Bank”) 73 34.8 approval of action to become a registered bank Florida National Bank at Perry holding company through the acquisition of voting Flo P r e i r d r a y F (“ ir P s e t r N ry a t B io a n n a k l ” B ) ank at Port St. Joe 60 6.6 shares of 30 banks located in the State of Florida. Port St. Joe (“Port St. Joe Bank”) 80 5.8 Florida National Bank at St. Petersburg In the case of each of the banks, Applicant pro­ St. Petersburg (“St. Petersburg Bank”) 63 84.7 Florida Bank at Starke poses to acquire all shares of such bank now owned Starke (“Starke Bank”) 62 6.4 Florida First National Bank at Vero Beach by the duPont Trust (“the Trust”), a registered Vero Beach (“Vero Beach Bank”) 71 18.9 Florida National Bank & Trust Company bank holding company, and such additional shares at West Palm Beach, West Palm Beach (“West Palm Beach Bank”) 69 23.8 as may be tendered pursuant to an exchange offer to be made, on the same basis as the exchange with Total deposits $988.1 the Trust, to such bank’s minority shareholders. The banks involved, their deposits \ and the mini­ « The proposal is designed as a first step by the mum percentage of shares to be acquired by Ap­ Trust in complying with the 1966 amendments to plicant (i.e., the percentage now owned by the the Act, which require that the Trust, by July 1, Trust) are as follows: 1971, either cease to be a bank holding company or conform to the prohibitions of the Act against Minimum Name of Per Cent to Deposits ownership of non-banking interests by a bank Proposed Bank* be Acquired (Millions) holding company. Consummation of the proposed transaction will not, in itself, terminate the status Florida National Bank at Arlington Jacksonville (“Arlington Bank”) 70 $ 13.2 of the Trust as a bank holding company, since it The Florida National Bank at Bartow Bartow (“Bartow Bank”) 71 21 .6 will control Applicant as a result of its receipt of Florida First National Bank at Belle Glade Belle Glade (“Belle Glade Bank”) 54 6.7 shares of Applicant in exchange for the bank shares Florida First National Bank at Brent Pensacola (“Brent Bank”) 68 8.0 which the Trust now owns. Compliance by the The Florida Bank at Bushnell Trust with the provisions of the Act will require Bushnell (“Bushnell Bank”) 58 4.6 Florida Bank at Chipley that subsequently, but in any event prior to July 1, Chipley (“Chipley Bank”) 63 6.0 Florida National Bank at Coral Gables 1971, it eliminate any and all relationships with Ap­ Coral Gables (“Coral Gables Bank”) 62 32.5 Florida Bank & Trust Company at Day­ plicant which would enable it to exercise, with re­ tona Beach, Daytona Beach (“Daytona Beach Bank”) 51 33.3 spect to Applicant and/or its subsidiary banks, a Florida Bank at DeLand DeLand (“DeLand Bank”) 61 14.9 controlling influence prohibited by the Act to a Florida Dealers and Growers Bank company which is not a bank holding company. Jacksonville (“Dealers and Growers Bank”) 60 10.5 Therefore, while the present proposal would appear The Florida First National Bank at Fernandina Beach, Fernandina Beach to facilitate an orderly divestiture of the subject (“Fernandina Beach Bank”) 87 10.7 Florida Bank at Fort Pierce banks by the Trust, its consummation will not im­ Fort Pierce (“Fort Pierce Bank”) 60 10.3 The Florida National Bank at Gainesville mediately effectuate such divestiture. That will de­ Gainesville (“Gainesville Bank”) 85 21 .7 The Florida National Bank at Jacksonville pend upon the effectiveness of the subsequent steps Jacksonville (“Jacksonville Bank”) 51 266.9 taken by the Trust, including a sale to the public Florida First National Bank at Key West Key West (“Key West Bank”) 59 18.7 of any shares of Applicant which would enable the Florida National Bank at Lake Shore Jacksonville (“Lake Shore Bank”) 60 10.3 Trust to exercise prohibited control over Applicant or its subsidiary banks. The effectiveness of the xAs of December 31, 1969. Unless otherwise noted, all subsequent steps taken to accomplish the statutory banking data are as of this date, and include holding com­ requirements will, of course, be a subject of con­ pany formations and acquisitions approved by the Board tinuing interest to the Board in the performance of to date. * All banks are located in the State of Florida. its responsibilities under the Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 727 Views and recommendations of supervisory au­ Bank, Coral Gables Bank, and Opa-Locka Bank thorities. As required by section 3(b) of the Act, are all located in Dade County. Together, they con­ the Board gave written notice of receipt of the ap­ trol 7.5 per cent of county deposits, and constitute plication to the Comptroller of the Currency and the fourth largest banking organization in the the Florida Commissioner of Banking, and re­ county. Miami Bank has been controlled by the quested their views and recommendations. The Trust since 1931, and Coral Gables Bank and Opa- Comptroller offered no objection to the proposal, Locka Bank have been affiliated with the group and the Commissioner recommended approval of since their organization in 1944 and 1960, respec­ the application, as it relates to banks under his su­ tively. pervision. Five of the subject banks are located in Duval Statutory considerations. Section 3(c) of the Act County—Jacksonville Bank, Arlington Bank, Deal­ provides that the Board shall not approve an ac­ ers and Growers Bank, Lake Shore Bank, and quisition that would result in a monopoly or would Northside Bank—and account, in the aggregate, be in furtherance of any combination or conspiracy for about 27 per cent of county deposits. Four to monopolize or to attempt to monopolize the busi­ other holding companies, one of which is larger ness of banking in any part of the United States. than the Trust in terms of local deposits, have sub­ Nor may the Board approve a proposed acquisition, sidiary banks in the Jacksonville area. the effect of which, in any section of the country, Two of the banks are located in each of the may be substantially to lessen competition, or to counties of Escambia, Palm Beach, Polk, and tend to create a monopoly, or which in any other Volusia. The subsidiaries in each of the three latter manner would be in restraint of trade, unless the counties, however, are located from 16 to 37 miles Board finds that the anticompetitive effects of the apart, and primarily serve distinct sections of the proposed transaction are clearly outweighed in the county in which they are located; in each case, public interest by the probable effect of the trans­ there is at least one banking organization with a action in meeting the convenience and needs of the larger share of county deposits. The two proposed communities to be served. In each case, the Board subsidiary banks in Escambia County—Pensacola is required to take into consideration the financial Bank and Brent Bank—are both located in the and managerial resources and future prospects of Pensacola area. Although the Trust is the largest the bank holding company and the banks con­ banking organization in the county, controlling cerned, and the convenience and needs of the com­ 24.5 per cent of county deposits, it does not munities to be served. dominate banking either in the county or the Pen­ sacola area. Competitive effects of the proposed transaction. Although Applicant would become the largest The Trust is, and Applicant would become, the banking organization in Florida, the proposed sub­ largest of 17 bank holding companies in Florida. The 30 subsidiary banks are located in 20 counties sidiary banks do not appear dominant either in the in widely separated areas of the State, and account State as a whole or in any local area, and their for 8 per cent of the deposits and 6.3 per cent of affiliation under control of the Trust does not ap­ the banking offices of all banks in Florida. pear to have had anticompetitive effects. It is also Except for two banks (Opa-Locka Bank and significant that the 1966 amendments to the Act Lake Shore Bank) which were organized since indicate no Congressional intent that the banking 1960 under sponsorship of the Trust, all of the group, as such, be broken, as evidenced by the subject banks have been affiliated with the Trust fact that the Trust was given the option of retain­ for more than 10 years, and most have been so ing all of its banking subsidiaries and divesting its affiliated for more than 20 years. Because of these non-banking interests. For these reasons, the Board long-standing affiliations, none of the banks in the is of the view that competitive considerations do group competes with any of the others. Moreover, not present a bar to consummation of Applicant’s 14 of the banks are located in communities and proposal. counties separate from any of the others, so that, On the basis of the foregoing, the Board con­ even in the absence of the present affiliation, com­ cludes that consummation of the proposal would petition among them or with other subsidiaries of not result in a monopoly, or be in furtherance of the Trust would be unlikely. any combination, conspiracy, or attempt to monop­ In each of six counties, there are located two or olize the business of banking in any area, and more of the proposed subsidiary banks. Miami would not restrain trade, substantially lessen com­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

728 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 petition, or tend to create a monopoly in any sec­ ATLANTIC BANCORPORATION, tion of the country. JACKSONVILLE, FLORIDA Financial and managerial resources and future In the matter of the application of Atlantic Ban­ prospects. Applicant, a newly-chartered corpora­ corporation, Jacksonville, Florida, for approval of tion, would begin operations with satisfactory fi­ acquisition of 80 per cent or more of the voting nancial condition and with assets consisting of its shares of The Exchange Bank of St. Augustine, St. investments in the 30 proposed subsidiary banks. Augustine, Florida. The banks are in sound financial condition and prospects of the group are favorable. Order Approving Acquisition of Bank Stock Management of Applicant and its subsidiary by Bank Holding Company banks is competent. Because of the statutory re­ There has come before the Board of Governors, quirement that the Trust divest itself of control of pursuant to section 3(a)(3) of the Bank Holding Applicant, changes in Applicant’s management will Company Act of 1956 (12 U.S.C. 1842(a)(3)) be required prior to July 1, 1971. Applicant has and section 222.3(a) of Federal Reserve Regula­ indicated that, prior to that date, changes will be tion Y (12 CFR 222.3(a)), the application of effected so that thereafter no trustee, officer, direc­ Atlantic Bancorporation, Jacksonville, Florida tor, or employee of the Trust or its subsidiaries will (“Applicant”), a registered bank holding com­ be either an officer or director of Applicant. Ap­ pany, for the Board’s prior approval of the ac­ plicant has demonstrated that there is within the quisition of 80 per cent or more of the voting banking group sufficient qualified personnel who shares of The Exchange Bank of St. Augustine, would have no connection with the Trust or its af­ St. Augustine, Florida (“St. Augustine Bank”). filiates to provide assurance that divestiture by the As required by section 3(b) of the Act, the Trust can be accomplished without presenting man­ Board gave written notice of receipt of the applica­ agement succession problems to Applicant. tion to the Commissioner of Banking for the State To the extent that consummation of the proposal of Florida and requested his views and recommen­ would facilitate divestiture by the Trust in com­ dation. The Commissioner recommended approval pliance with the Congressional mandate, while at of the application. the same time avoiding possible difficulties which Notice of receipt of the application was pub­ smaller banks among the proposed subsidiaries lished in the Federal Register on June 19, 1970 might face were they to be deprived of the banking (35 Federal Register 10123), providing an op­ affiliations upon which they have become dependent, portunity for interested persons to submit com­ considerations under the banking factors weigh in ments and views with respect to the proposal. A favor of approval of the application. copy of the application was forwarded to the Convenience and needs of the communities in­ United States Department of Justice for its con­ volved. Consummation of Applicant’s proposal sideration. Time for filing comments and views has would likely effect little change in the convenience expired and all those received have been considered or needs of the communities served by the proposed by the Board. subsidiary banks. The principal benefits to the com­ The Board has considered the application in the munities involved would result from the fact that light of the factors set forth in section 3(c) of the the proposal would permit the banks to continue Act, including the effect of the proposed acquisi­ to serve in much the same manner as in the past, tion on competition, the financial and managerial avoiding the disruptions which might result from resources and future prospects of the Applicant possible alternative methods of terminating their and the banks concerned, and the convenience and affiliation with the Trust and its nonbanking sub­ needs of the communities to be served. Upon such sidiaries. consideration, the Board finds that: These considerations provide additional weight in Applicant, the fourth largest banking organiza­ support of approval of the application. tion in Florida, controls 15 banks with aggregate Summary and conclusion. On the basis of all of deposits of $577 million, representing approxi­ the relevant facts contained in the record, and in mately 4.7 per cent of total bank deposits in the the light of the factors set forth in section 3(c) of State. (All banking data are as of December 31, the Act, it is the Board’s judgment that the pro­ 1969, adjusted to reflect bank holding company posed transaction would be in the public interest, acquisitions approved by the Board to date.) On and that the application should be approved. acquisition of St. Augustine Bank (deposits $23 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 729 million) and of Hastings Exchange Bank, Hastings, ernors Robertson, Mitchell, and Maisel. Absent and not voting: Governors Daane, Brimmer, and Sherrill. Florida, acquisition of which by Applicant is ap­ proved by the Board by separate Order of this date, (Signed) Kenneth A. Kenyon, Applicant would control 4.9 per cent of such de­ Deputy Secretary. posits, and would remain the fourth largest bank­ [seal] ing organization in the State. Hastings Exchange Bank and St. Augustine Bank have been affiliated In the matter of the application of Atlantic Ban­ through common ownership since organization of corporation, Jacksonville, Florida, for approval of the former in 1950, and, because of this and their acquisition of 80 per cent or more of the voting geographical separation, no competition exists be­ shares of Hastings Exchange Bank, Hastings, tween them. Florida. St. Augustine Bank is the largest of three banks located in the relevant market, which encompasses Order Approving Acquisition of Bank Stock approximately the eastern two-thirds of St. Johns by Bank Holding Company County. The other two banks in that market are There has come before the Board of Governors, both subsidiaries of the State’s third largest banking pursuant to section 3(a)(3) of the Bank Holding organization, a registered bank holding company. Company Act of 1956 (12 U.S.C. 1842(a)(3)), One of these is only marginally smaller than St. and section 222.3(a) of Federal Reserve Regula­ Augustine Bank; the other is a new bank which tion Y (12 CFR 222.3(a)), the application of At­ opened for business in April of this year. Appli­ lantic Bancorporation, Jacksonville, Florida (“Ap­ cant’s nearest subsidiary to St. Augustine Bank is plicant”), a registered bank holding company, for located 30 miles from the latter and does not com­ the Board’s prior approval of the acquisition of 80 pete with it. Consummation of the proposed ac­ per cent or more of the voting shares of Hastings quisition would eliminate no existing competition, Exchange Bank, Hastings, Florida (“Hastings and it does not appear that it would foreclose sig­ Bank”). nificant potential competition, or have adverse ef­ As required by section 3(b) of the Act, the fects on the viability or competitive effectiveness of Board gave written notice of receipt of the appli­ any competing bank. cation to the Commissioner of Banking for the Based upon the foregoing, the Board concludes State of Florida and requested his views and that consummation of the proposed acquisition recommendation. The Commissioner recommended would not have an adverse effect on competition in approval of the application. any relevant area. The banking factors, as they Notice of receipt of the application was pub­ relate to Applicant, its present subsidiaries, and St. lished in the Federal Register on June 18, 1970 Augustine Bank, are consistent with approval. Con­ (35 Federal Register 10059), providing an oppor­ siderations relating to the convenience and needs tunity for interested persons to submit comments of the communities to be served are also consistent and views with respect to the proposal. A copy of with approval of the application. It is the Board’s the application was forwarded to the United States judgment that the proposed transaction would be Department of Justice for its consideration. Time in the public interest, and that the application for filing comments and views has expired and all should be approved. those received have been considered by the Board. It is hereby ordered, for the reasons set forth The Board has considered the application in the in the findings summarized above, that said appli­ light of the factors set forth in section 3(c) of the cation be and hereby is approved, provided that Act, including the effect of the proposed acquisition the action so approved shall not be consummated on competition, the financial and managerial re­ (a) before the thirtieth calendar day following the sources and future prospects of the Applicant and date of this Order or (b) later than three months the banks concerned, and the convenience and after the date of this Order, unless such time be needs of the communities to be served. Upon such extended for good cause by the Board, or by the consideration, the Board finds that: Federal Reserve Bank of Atlanta pursuant to dele­ Applicant, the fourth largest banking organiza­ gated authority. tion in Florida, controls 15 banks with aggregate By order of the Board of Governors, August 20, deposits of $577 million representing approximately 1970. 4.7 per cent of total bank deposits in the State. Voting for this action: Chairman Burns and Gov­ (All banking data are as of December 31, 1969, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

730 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 adjusted to reflect bank holding company acquisi­ the date of this Order, unless such time be extended tions approved by the Board to date.) On acquisi­ for good cause by the Board, or by the Federal tion of Hastings Bank (deposits $4 million) and of Reserve Bank of Atlanta pursuant to delegated au­ The Exchange Bank of St. Augustine, St. Augu­ thority. stine, Florida, acquisition of which by Applicant is By order of the Board of Governors, August 20, approved by the Board by separate Order of this 1970. date, Applicant would control 4.9 per cent of such Voting for this action: Chairman Burns and Gov­ deposits, and would remain the fourth largest bank­ ernors Robertson, Mitchell, and Maisel. Absent and not voting: Governors Daane, Brimmer, and Sherrill. ing organization in the State. The Exchange Bank of St. Augustine and Hastings Bank have been af­ (Signed) K enneth A. Kenyon, filiated through common ownership since organiza­ Deputy Secretary. tion of the latter in 1950, and, because of this and [seal] their geographical separation, no competition exists between them. FIRST NATIONAL CHARTER Hastings Bank is the only bank located in Hast­ CORPORATION, KANSAS CITY, MISSOURI ings, an agricultural communty with a population of 600, located at the fringe of a market centered In the matter of the application of First Nation­ in Palatka (Putnam County), 11 miles southwest. al Charter Corporation, Kansas City, Missouri, for The larger of two Palatka banks (the only other approval of acquisition of 80 per cent or more of banks in the market) is a subsidiary of Applicant; the voting shares of the National Bank of Boonthe other Palatka bank is a subsidiary of another ville, Boonville, Missouri. registered bank holding company, and both are larger than Hastings Bank. Applicant’s subsidiary in Palatka derives a small 4 Order Approving Acquisition of Bank Stock amount of business from the area served by Hast­ by Bank Holding Company ings Bank, and therefore some competition would There has come before the Board of Governors, be eliminated by consummation of the proposal. pursuant to section 3(a)(3) of the Bank Holding However, Hastings Bank does not compete in Company Act of 1956 (12 U.S.C. 1842(a)(3)) Palatka, and, because of its limited size and rela­ and section 222.3(a) of Federal Reserve Regula­ tively remote location, exerts little competitive im­ tion Y (12 CFR 222.3(a)), an application by pact on the Palatka market. These same considera­ First National Charter Corporation, Kansas City, tions, together with the State law’s prohibition Missouri (“Applicant”), a registered bank hold­ against branching, make it unlikely that competi­ ing company, for the Board’s prior approval of the tion between Hastings Bank and the Palatka sub­ acquisition of 80 per cent or more of the voting sidiary would become significant in the future. The shares of the National Bank of Boonville, Boon­ proposed acquisition would not have serious anti­ ville, Missouri (“Bank”). competitive effects in any relevant market. As required by section 3(b) of the Act, the Because of Hastings Bank’s dependence on an Board gave written notice of receipt of the applica­ agricultural economy, its deposits are subject to tion to the Comptroller of the Currency and re­ seasonal fluctuations; its access to the financial and quested his views and recommendation. The Comp­ management resources of Applicant through the troller offered no objection to the approval of the proposed affiliation would result in improvements application. in its prospects. Applicant’s ability to provide a Notice of receipt of the application was pub­ broader service offering would also result in greater lished in the Federal Register on July 17, 1970 (35 convenience to the area served by Hastings Bank, Federal Register 11542), providing an opportu­ and these considerations provide support for ap­ nity for interested persons to submit comments and proval of the application. views with respect to the proposal. A copy of the It is hereby ordered, for the reasons set forth application was forwarded to the United States De­ in the findings summarized above, that said appli­ partment of Justice for its consideration. Time for cation be and hereby is approved, provided that the filing comments and views has expired and all those action so approved shall not be consummated (a) received have been considered by the Board. before the thirtieth calendar day following the date The Board has considered the application in the of this Order or (b) later than three months after light of the factors set forth in section 3(c) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 731 Act, including the effect of the proposed acquisition ernors Maisel, Brimmer, and Sherrill. Absent and not voting: Governors Robertson, Mitchell, and Daane. on competition, the financial and managerial re­ sources and future prospects of Applicant and the (Signed) K enneth A. Kenyon, banks concerned, and the convenience and needs Deputy Secretary. of the communities to be served. Upon such con­ [seal] sideration, the Board finds that: THE FIRST NATIONAL BANCORPORATION, Applicant, the second largest bank holding com­ INC., DENVER, COLORADO pany and the fourth largest banking organization in Missouri, has two subsidiary banks with $407 In the matter of the application of The First Na­ million in deposits, which represent 3.8 per cent of tional Bancorporation, Inc., Denver, Colorado, for the total deposits of all banks in the State. (All approval of acquisition of more than 80 per cent banking data are as of December 31, 1969, ad­ of the voting shares of The First National Bank of justed to reflect holding company formations and Pueblo, Pueblo, Colorado. acquisitions approved by the Board to date.) Bank (deposits $9.4 million) is the smaller of Order D isapproving Acquisition of Bank two banks in Boonville, and is the second largest of Stock by Bank Holding Company 11 banks serving Cooper and Howard Counties, There has come before the Board of Governors, the relevant market. Applicant’s two present sub­ pursuant to section 3(a)(3) of the Bank Holding sidiaries are located more than 100 miles west of Company Act of 1956 (12 U.S.C. 1842(a)(3) ) Bank, and it does not appear that existing com­ and section 222.3(a) of Federal Reserve Regula­ petition would be eliminated, or significant po­ tion Y (12 CFR 222.3 (a) ), an application by tential competition foreclosed, by consummation The First National Bancorporation, Inc., Denver, of the present proposal. Colorado, a registered bank holding company, for Based upon the foregoing, the Board concludes the Board’s prior approval of the acquisition of that consummation of the proposed acquisition more than 80 per cent of the voting shares of The would not have significant adverse effects on com­ First National Bank of Pueblo, Pueblo, Colorado. petition in any relevant area. The banking factors, As required by section 3(b) of the Act, the as they relate to applicant, its subsidiaries, and Board gave written notice of receipt of the ap­ Bank, are regarded as consistent with approval. plication to the Comptroller of the Currency, and Considerations relating to the convenience and requested his views and recommendation. The needs of the communities to be served lend some Comptroller recommended that the application be weight in support of approval; Applicant pro­ approved. poses to expand the services offered by Bank, and Notice of receipt of the application was pub­ to assist it in meeting the larger credit needs of the lished in the Federal Register on February 27, area, through participation with Applicant’s sub­ 1970 (35 Federal Register 3846), providing an op­ sidiaries. It is the Board’s judgment that consum­ portunity for interested persons to submit com­ mation of the proposed acquisition would be in ments and views with respect to the proposal. A the public interest, and that the application should copy of the application was forwarded to the be approved. United States Department of Justice for its con­ It is hereby ordered, on the basis of the find­ sideration. Time for filing comments and views ings summarized above, that said application be has expired and all those received have been con­ and hereby is approved, provided that the acquisi­ sidered by the Board. tion so approved shall not be consummated (a) It is hereby ordered, for the reasons set forth before the thirtieth calendar day following the date in the Board’s Statement of this date, that said ap­ of this Order, or (b) later than three months after plication be and hereby is denied. the date of this Order, unless such period is ex­ By order of the Board of Governors, Septem­ tended for good cause by the Board or by the ber 1, 1970. Federal Reserve Bank of Kansas City pursuant to Voting for this action: Chairman Burns and Gov­ delegated authority. ernors Robertson, Mitchell, and Maisel. Absent and not voting: Governors Daane, Brimmer, and Sherrill. By order of the Board of Governors, August 20, (Signed) E lizabeth L. Carm ichael, 1970. Assistant Secretary. Voting for this action: Chairman Burns and Gov­ [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

732 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 Statement banking organization in the State. The share of State deposits held by the two largest banking or­ The First National Bancorporation, Inc., Denver, ganizations would increase from 29.5 per cent to Colorado (“Applicant”), a registered bank holding about 31 per cent. company, has applied to the Board of Governors, Applicant’s present subsidiaries are located be­ pursuant to section 3(a)(3) of the Bank Holding tween 98 and 160 miles from Pueblo, the situs of Company Act of 1956 (12 U.S.C. 1842(a)(3)), Bank’s only office. No significant competition pres­ for prior approval of the acquisition of more than ently exists between Bank and those subsidiaries. 80 per cent of the voting shares of The First National There are, nevertheless, significant competitive Bank of Pueblo, Pueblo, Colorado (“Bank”). issues presented by Applicant’s proposal. Bank is by Views and recommendation of supervisory far the largest of seven banks in Pueblo County, ac­ authority. As required by section 3(b) of the Act, counting for 39.5 per cent of county deposits— the Board notified the Comptroller of the Cur­ about one-third more than the area’s second largest rency of receipt of the application and requested bank. Bank would be the second bank in the area to his views and recommendation thereon. The Comp­ be affiliated with a bank holding company; the troller recommended approval of the application. area’s fourth largest bank ($15.4 million deposits) Statutory considerations. Section 3(c) of the Act is a subsidiary of Denver U.S. Bancorporation, provides that the Board shall not approve an ac­ Inc., the other large Denver-based bank holding quisition that would result in a monopoly or company. would be in furtherance of any combination or conspiracy to monopolize or to attempt to monop­ In connection with its review of the application, olize the business of banking in any part of the the Board has considered a comment received from United States. Nor may the Board approve a pro­ the Department of Justice, which concluded that posed acquisition the effect of which, in any section consummation of the proposal “would have a of the country, may be substantially to lessen significantly adverse effect on competition.” Specifi­ competition, or to tend to create a monopoly, or cally, the Department took the position that the which in any other manner would be in restraint proposal would serve to entrench the highly con­ of trade, unless the Board finds that the anticom­ centrated banking structure in Pueblo County and petitive effects of the proposed transaction are eliminate the potential that Applicant might enter clearly outweighed in the public interest by the the market either through establishment of a new probable effect of the transaction in meeting the bank or acquisition of a smaller bank, or that Bank convenience and needs of the communities to be might meaningfully participate in the competitive served. In each case, the Board is required to take efforts of another organization which would offer into consideration the financial and managerial an alternative to Applicant and the other large resources and future prospects of the bank holding banking organizations in the State of Colorado. company and the banks concerned, and the conven­ The Department also expressed concern that ap­ ience and needs of the communities to be served. proval of the proposal might trigger other acquisi­ Competitive effect of proposed transaction. Ap­ tions which would lead to the domination of most plicant, which has five subsidiary banks with total principal markets in the State by a few bank hold­ deposits of $570 million1, is presently the second ing companies. largest banking organization in Colorado in terms Applicant, in response to the Department’s of State deposits; it is only slightly smaller than the comments, indicated its view that the Pueblo market State’s largest banking organization, another Den­ was not an attractive area for new entry, and stated ver-based holding company. Acquisition of Bank that acquisition of a smaller bank in the area would ($54 million deposits) would increase Applicant’s not enable it to accomplish the objectives of the in­ share of deposits in the State from 14.5 per cent stant proposal. It also contended that Bank lacks to 15.9 per cent, and it would become the largest the management resources to operate, or contribute significantly to the operation of, a bank holding 1 All banking data are as December 31, 1969, adjusted company. to reflect holding company formations and acquisitions In approving an application by Applicant to approved by the Board to date. Included among Applicant’s subsidiaries is The First National Bank of Greeley, Gree­ acquire The First National Bank of Greeley, ley, Colorado ($40 million deposits), acquisition of which Greeley, Colorado (1970 Federal Reserve Bul­ was approved by the Board on June 9, 1970. Consumma­ tion of that acquisition has been delayed by litigation in­ letin 539), a majority of the Board expressed the stituted by the United States Department of Justice. view that the proper approach to competitive ques­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 733 tions presented by prospective structural changes would dissolve an affiliation now existing between in Colorado banking is to determine, on a case-by- Bank and Park National Bank ($4 million de­ case basis, the desirability or undesirability of the posits), a suburban bank which is the sixth largest structural changes which would result from the in the Pueblo area, thereby removing an impedi­ proposal involved. Based on the particular facts of ment to competition between the two banks. How­ that case, the Board concluded that competition ever, in view of the limited size of Park National would not be unduly threatened by consummation Bank, and its lack of a downtown location, it ap­ of the proposal, but indicated its determination to pears to be in a disadvantageous position to exert deal appropriately with anticompetitive proposals a significant competitive impact on Bank, especial­ in other parts of the State. ly if the latter were affiliated with Applicant, and Those members of the Board who have con­ the Board therefore accords little weight to the sidered the present proposal are unanimous in the possible procompetitive effects of its disaffiliation view that its consummation would preclude possible from Bank. alternative affiliations or de novo entry which Based on the foregoing, the Board concludes would almost certainly result in a more competitive that consummation of Applicant’s proposal would environment in the Pueblo area. Unlike the bank not result in a monopoly or be in furtherance of involved in the Greeley case, Bank is the dominant any combination, conspiracy, or attempt to monop­ institution in its market. It is, moreover, the sec­ olize the business of banking in any area. How­ ond largest independent bank in the entire State of ever, the anticompetitive effects of the proposal, Colorado, and the largest outside the Denver area. both within the Pueblo area and in other Colorado Despite the fact that the Pueblo area has a rela­ areas which would be deprived of the benefits of tively high ratio of population to banking offices, possible alternative affiliations by Bank which the economy of the area has been stagnant, par­ would be foreclosed by the present proposal, are ticularly as compared with other areas of the State. sufficiently serious as to provide significant weight against approval of the application. The area, therefore, cannot be considered more than moderately attractive for new entry. There Financial and managerial resources and future are, however, several smaller banks in the area, the prospects. The financial condition of Applicant and acquisition of any of which would be competitively its subsidiary banks is generally satisfactory, their preferable to the present proposal. Also, to the ex­ management is capable, and prospects of the group tent that deconcentration through de novo entry are favorable. The financial condition and management of Bank may be said to be unlikely, greater significance are satisfactory, and its prospects, whether operat­ must be attached to the present proposal’s likely ing independently or as a subsidiary of Applicant, effect of increasing the already wide disparity in are favorable. the competitive positions of Bank and its smaller rivals. Finally, while the ability of Bank to serve These considerations, while consistent with ap­ as a lead bank in a significant statewide organiza­ proval of the application, provide no significant tion may be subject to question, its utility as a vehi­ weight in support of such action. cle through which a smaller holding company Convenience and needs of the communities in­ might achieve meaningful entry into the Pueblo volved. Consummation of Applicant’s proposal area cannot be seriously doubted. And even if it would have no significant effect on the conven­ were to be assumed that the only result of denial ience and needs of communities served by its pres­ of the present proposal would be to preserve the ent subsidiaries. existing structure of banking in Pueblo, it is the Pueblo is a city with a population of 105,000, Board’s judgment that the preservation of signifi­ located at the foot of the Rocky Mountains, 110 cant independent competitors in the principal miles south of Denver. A large percentage of the Colorado markets is much to be preferred to the city’s labor force is unskilled, and is employed by alternative of permitting the development of a the city’s largest corporation. Because of the lack situation in which such markets are all dominated of economic diversification, the city’s growth rate by one or another of the largest banking organiza­ has been slow in comparison with other cities on tions in the State. the eastern slope of the Rocky Mountains—about A consideration which could be argued to pro­ 16 per cent in the past decade. There are some vide some offsetting weight to these anticompeti­ indications of likely future growth, however, the tive effects is that consummation of the proposal most important of which is the Frying Pan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

734 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 Arkansas Water Division project, which will sup­ directly by Applicant, the proposed acquisition plement irrigation and water supplies, produce would result in Applicant’s control of about 6.5 hydro-electric power, and provide new recreation­ per cent of the voting shares of Bank. al facilities. As required by section 3(b) of the Act, the Bank and other banks in Pueblo provide all the Board gave written notice of receipt of the applica­ usual services required in a city of its size, includ­ tion to the Superintendent of Banks of the State of ing trust services. The principal benefits which Ap­ New York, and requested his views and recom­ plicant claims would result from the acquisition mendation. The Superintendent indicated that he trace to its proposal to increase the social con­ had no objection to the proposal. sciousness of Bank, in order that it will participate Notice of receipt of the application was pub­ more fully in programs to aid the economically lished in the Federal Register on July 28, 1970 (35 disadvantaged in the area. It does not appear that Federal Register 12088), providing an opportunity consummation of the proposal would make pos­ for interested persons to submit comments and sible the provision of any significant new services views with respect to the proposal. A copy of the which are beyond Bank’s present ability to render, application was forwarded to the United States De­ particularly in the light of a close and long-stand­ partment of Justice for its consideration. Time for ing correspondent relationship with Applicant’s filing comments and views has expired and all those lead bank. received have been considered by the Board. These considerations provide some weight in The Board has considered the application in the support of the proposal, but fail to outweigh the light of the factors set forth in section 3(c) of the serious anticompetitive effects noted earlier. Act, including the effect of the proposed acquisition Summary and conclusion. On the basis of all on competition, the financial and managerial re­ relevant facts contained in the record, and in the sources and future prospects of the Applicant and light of the factors set forth in section 3(c) of the the banks concerned, and the convenience and Act, it is the Board’s judgment that the proposed needs of the community to be served. Upon such transaction would not be in the public interest, and consideration, the Board finds that: that the application should be denied. Applicant, the largest bank in Great Britain, is a bank holding company by virtue of its owner­ BARCLAYS BANK LIMITED, ship of more than 25 per cent of the voting stock LONDON, ENGLAND of (1) Barclays Bank DCO, London, England, which operates three branch offices in New York In the matter of the application of Barclays Bank (deposits of $108 million), and (2) Barclays Bank Limited, London, England, for approval of acquisi­ of California, San Francisco, California. Section tion of 1,336,633 voting shares of the Bank of 3(d) of the Act—which prohibits the formation of London and South America Limited, London, a plural State holding company—was inapplicable England. since Applicant became a bank holding company by virtue of the 1966 amendments to the Act, Order Approving Acquisition of Bank Stock rather than pursuant to Board approval. (Prior to by Bank H olding Company that time, the term “bank” was so defined in the There has come before the Board of Governors, Act as not to include Barclays Bank DCO; Ap­ pursuant to section 3(a)(3) of the Bank Holding plicant, therefore, was then regarded as having Company Act of 1956 (12 U.S.C. 1842(a)(3)) only one subsidiary bank, and thus not a bank and section 222.3(a) of Federal Reserve Regula­ holding company.) At the time that Applicant be­ tion Y (12 CFR 222.3(a)), an application by came a bank holding company, the State in which Barclays Bank Limited, London, England (“Ap­ the principal operations of its subsidiaries were plicant”), a registered bank holding company, for conducted was New York; therefore, under sec­ the Board’s prior approval of the acquisition of tion 3(d) of the Act, New York is the only State 1,336,633 of the voting shares of Bank of Lon­ in which Applicant can acquire additional sub­ don and South America Limited, London, England sidiary banks. Bank, a commercial banking insti­ (“Bank”), which has a branch in New York City. tution operating primarily in Great Britain, Europe, Applicant would acquire the stock through its and Latin America, maintains a branch in New subsidiary, Barclays Bank DCO. When combined York City ($106 million deposits) and a represen­ with shares of Bank now owned directly and in­ tative office in Pittsburgh. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 735 Although Applicant’s subsidiary, Barclays Bank Board gave written notice of receipt of the applica­ DCO, and Bank both maintain offices in New York tion to the Ohio Superintendent of Banks, and re­ City, the Board is of the view that consummation quested his views and recommendation. The Super­ of the acquisition by Applicant of a minority stock intendent indicated he had no objection to the ap­ interest in Bank would have no significant effect proval of the application. on banking competition in New York City or in Notice of receipt of the application was published any other part of the United States. Considerations in the Federal Register on July 15, 1970 (35 Fed­ relating to the banking factors and the convenience eral Register 11316), providing an opportunity for and needs of the community involved are consistent interested persons to submit comments and views with approval. It is the Board’s judgment that the with respect to the proposal. A copy of the appli­ proposed transaction would be in the public interest, cation was forwarded to the United States Depart­ and that the application should be approved. ment of Justice for its consideration. Time for filing It is hereby ordered, on the basis of the find­ comments and views has expired and all those re­ ings summarized above, that said application be ceived have been considered by the Board. and hereby is approved, provided that the acquisi­ The Board has considered the application in the tion so approved shall not be consummated (a) light of the factors set forth in section 3(c) of the before the thirtieth calendar day following the date Act, including the effect of the proposed acquisition of this Order or (b) later than three months after on competition, the financial and managerial re­ the date of this Order, unless such period is ex­ sources and prospects of Applicant and the banks tended for good cause by the Board, or by the concerned, and the convenience and needs of the Federal Reserve Bank of New York pursuant to communities to be served. Upon such consideration, delegated authority. the Board finds that: By order of the Board of Governors, September Applicant, the smallest bank holding company in 1, 1970. Ohio, has two subsidiary banks with $7.3 million Voting for this action: Governors Mitchell, Daane, in deposits, which represent less than 0.1 per cent Maisel, and Sherrill. Absent and not voting: Chairman of the total deposits of all banks in the State. (All Burns and Governors Robertson and Brimmer. banking data are as of December 31, 1969, ad­ (Signed) Elizabeth L. Carm ichael, justed to reflect holding company formations and Assistant Secretary. acquisitions approved by the Board to date.) [seal] Bank (deposits $3.1 million) is the only financial institution in Huntsville, and is the fifth largest of AMERICAN BANCORPORATION, eight banks serving Logan County, the relevant COLUMBUS, OHIO market. Applicant’s two present subsidiaries are located 49 and 122 miles from Bank, and it does In the matter of the application of American not appear that existing competition would be elimi­ Bancorporation, Columbus, Ohio, for approval of nated, or significant potential competition fore­ acquisition of 51.77 per cent or more of the voting closed, by consummation of the present proposal. shares of The Huntsville State Bank, Huntsville, Based upon the foregoing, the Board concludes Ohio. that consummation of the proposed acquisition would not have significant adverse effects on com­ Order Approving Acquisition of Bank Stock petition in any relevant area. The banking factors, by Bank Holding Company as they relate to Applicant, its subsidiaries, and There has come before the Board of Governors, Bank, are regarded as consistent with approval. pursuant to section 3(a)(3) of the Bank Holding Considerations relating to the convenience and needs Company Act of 1956 (12 U.S.C. 1842(a)(3)) of the communities to be served lend some weight and section 222.3(a) of Federal Reserve Regula­ in support of approval; in anticipation of consum­ tion Y (12 CFR 222.3(a)), an application by mation of this proposal, certain improvements in, American Bancorporation, Columbus, Ohio (“Ap­ and reductions in costs of, services offered by Bank plicant”), a registered bank holding company, for have already been instituted. Included among these the Board’s prior approval of the acquisition of are the elimination of service charges on checking 51.77 per cent or more of the voting shares of The accounts, a reduction in the minimum deposit re­ Huntsville State Bank, Huntsville, Ohio (“Bank”). quirement for time certificates of deposit, and an As required by section 3(b) of the Act, the extension of banking hours. It is the Board’s judg­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

736 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 ment that consummation of the proposed acquisi­ Board gave written notice of receipt of the appli­ tion would be in the public interest, and that the cation to the Comptroller of the Currency and to application should be approved. the Commissioner of Finance for the State of Mis­ It is hereby ordered, on the basis of the find­ souri and requested their views and recommenda­ ings summarized above, that said application be and tions. The Comptroller and the Commissioner both hereby is approved, provided that the acquisition so recommended approval of the application. approved shall not be consummated (a) before the Notice of receipt of the application was pub­ thirtieth calendar day following the date of this lished in the Federal Register on July 10, 1970 (35 Order, or (b) later than three months after the date Federal Register 11148), which provided an oppor­ of this Order, unless such period is extended for tunity for interested persons to submit comments good cause by the Board or by the Federal Reserve and views with respect to the proposed transaction. Bank of Cleveland pursuant to delegated authority. A copy of the application was forwarded to the By order of the Board of Governors, September United States Department of Justice for its con­ 4, 1970. sideration. The time for filing comments and views Voting for this action: Governors Mitchell, Daane, has expired and all those received have been con­ Maisel, and Sherrill. Absent and not voting: Chairman sidered by the Board. Burns and Governors Robertson and Brimmer. It is hereby ordered, for the reasons set forth (Signed) Elizabeth L. Carm ichael, in the Board’s Statement of this date, that said ap­ Assistant Secretary. plication be and hereby is approved, provided that [seal] the action so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months MISSOURI BANCSHARES, INC., after the date of this Order, unless such period is KANSAS CITY, MISSOURI extended for good cause by the Board, or by the In the matter of the application of Missouri Banc­ Federal Reserve Bank of Kansas City pursuant to shares, Inc., Kansas City, Missouri, for approval of delegated authority. action to become a bank holding company through By order of the Board of Governors, September the acquisition of more than 80 per cent of the vot­ 4-, 1970. ing shares of Kemper State Bank, Boonville; The Voting for this action: Chairman Burns and Gover­ Central National Bank of Carthage, Carthage; The nors Maisel, Brimmer, and Sherrill. Absent and not voting: Governors Robertson, Mitchell, and Daane. Peoples National Bank of Warrensburg, Warrensburg; and Security National Bank of Joplin, Joplin; (Signed) Elizabeth L. Carm ichael, all in the State of Missouri. Assistant Secretary. [seal] Order Approving Action to Become a Bank H olding Company Statement There has come before the Board of Governors, Missouri Bancshares, Inc., Kansas City, Missouri pursuant to section 3(a)(1) of the Bank Holding (“Applicant ’), which presently owns all but direc­ Company Act of 1956 (12 U.S.C. 1842(a)(1)) tors’ qualifying shares of The City National Bank and section 222.3(a) of Federal Reserve Regulation and Trust Company of Kansas City, Kansas City, Y (12 CFR 222.3(a)), an application by Missouri Missouri (“City National”), has filed with the Bancshares, Inc., Kansas City, Missouri, for the Board, pursuant to section 3(a)(1) of the Bank Board’s prior approval of action whereby Applicant Holding Company Act of 1956, an application for would become a bank holding company through the approval of action to become a registered bank acquisition of the following banks in Missouri: holding company through the acquisition of more Kemper State Bank, Boonville; The Central Na­ than 80 per cent of the voting shares of Kemper tional Bank of Carthage, Carthage; The Peoples State Bank, Boonville (“Boonville Bank”); The National Bank of Warrensburg, Warrensburg; and Central National Bank of Carthage, Carthage Security National Bank of Joplin, Joplin. Applicant (“Carthage Bank”); The Peoples National Bank of presently owns all but directors’ qualifying shares Warrensburg, Warrensburg (“Warrensburg Bank”); of The City National Bank and Trust Company, and Security National Bank of Joplin, Joplin (“Jop­ Kansas City, Missouri. lin Bank”), all in Missouri. As required by section 3(b) of the Act, the Views and recommendations of supervisory au­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 737 thorities. As required by section 3(b) of the Act, miles apart in Jasper County, approximately 150 the Board gave written notice of receipt of the ap­ miles south of Kansas City. Carthage Bank is the plication to the Comptroller of the Currency and smaller of two banks in Carthage, a farming com­ the Commissioner of Finance for the State of Mis­ munity of 12,000, and serves primarily the agricul­ souri and requested their views and recommenda­ tural financing needs of its immediate area. Joplin tions. The Comptroller and the Commissioner both Bank, the third largest of five banks in a city of recommended approval of the application. 44,000, is about one-sixth as large as the largest Statutory considerations. Section 3(c) of the Act bank in that city; the city’s second largest bank is provides that the Board shall not approve an acqui­ a subsidiary of the largest bank holding company in sition that would result in a monopoly or would be Missouri. Joplin Bank also serves primarily the in furtherance of any combination or conspiracy to needs of its immediate area, and no significant com­ monopolize or to attempt to monopolize the busi­ petition appears to exist between it and Carthage ness of banking in any part of the United States. Bank. Nor may the Board approve a proposed acquisi­ Boonville Bank is the larger of two banks in tion, the effect of which, in any section of the coun­ Boonville; the other Boonville bank is a recently try, may be substantially to lessen competition, or approved subsidiary of another bank holding com­ to tend to create a monopoly, or which in any other pany. Boonville, which is situated 105 miles east manner would be in restraint of trade, unless the of Kansas City, has a population of 7,700, and Board finds that the anticompetitive effects of the serves as the trade and service center of a pre­ proposed transaction are clearly outweighed in the dominantly agricultural area which includes major public interest by the probable effect of the trans­ portions of Cooper and Howard Counties. Boon­ action in meeting the convenience and needs of the ville Bank controls 29 per cent of the total deposits communities to be served. In each case, the Board of 11 area banks. is required to take into consideration the financial The town of Warrensburg has a population of and managerial resources and future prospects of 9,300 and is situated 66 miles southeast of Kansas the bank holding company and the banks con­ City. Warrensburg Bank is slightly larger than the cerned, and the convenience and needs of the com­ town’s only other bank and controls 33 per cent of munities to be served. the total deposits held by six banks operating in the Competitive effect of proposed transaction. The area. The economy of the town is dependent to a 10 largest banking organizations in Missouri control great extent on a State college located there, which 40.5 per cent of total commercial bank deposits in has an enrollment o‘f 12,000, and upon a military the State.1 Applicant, as a result of its ownership of installation with 9,000 personnel and dependents, City National ($369 million deposits), is the State’s situated nine miles east. fifth largest banking organization and controls 3.4 There is no meaningful competition among the per cent of total deposits. Acquisition of Boonville proposed subsidiary banks or between any of them Bank ($17 million deposits), Carthage Bank ($16 and Applicant’s present subsidiary, City National. million deposits), Warrensburg Bank ($13 million Moreover, the same factors which have limited such deposits), and Joplin Bank (,$9 million deposits) competition to date, coupled with a prohibition would increase Applicant’s control of State deposits against branching in Missouri, make it unlikely that to 3.9 per cent. Applicant would become the State’s competition would develop in the future. fourth largest banking organization, and its second On the basis of the foregoing, the Board con­ largest bank holding company. cludes that consummation of the proposed trans­ Applicant’s present subsidiary, City National action would not result in a monopoly, nor be in ($369 million deposits), is located in downtown furtherance of any combination, conspiracy or Kansas City. It is the fifth largest bank in the State attempt to monopolize the business of banking in and the third largest in Kansas City. any part of the United States, and would not re­ Each of the banks proposed to be acquired is strain trade, substantially lessen competition, or tend located 66 miles or more from Kansas City. The to create a monopoly in any part of the country. areas served are widely separated except for Joplin Financial and managerial resources and future Bank and Carthage Bank, which are located 16 prospects. Applicant acquired its present subsidiary bank, City National, in December 1969. The finan­ 1AI1 banking data are as of December 31, 1969, and re­ cial condition of Applicant is satisfactory, its man­ flect holding company formations and acquisitions approved by the Board to date. agement is competent, and its prospects appear Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

favorable. These same conclusions apply to City ties served by the proposed subsidiaries appear to National. be adequately served at the present time. However, The financial condition of each of the proposed the proposed affiliation would make available needed subsidiary banks is satisfactory, their prospects are trust services in the Warrensburg and Boonville favorable, and their present managements are con­ areas, increase the lending capabilities of all the sidered capable. To varying degrees, however, each banks, and make specialized banking services avail­ of the banks has some need to provide for greater able to each of the areas. management depth and/or management succession, These considerations lend some support for ap­ and consummation of the present proposal would proval of the application. aid in meeting such need. Summary and conclusion. On the basis of all The Board concludes that considerations relat­ relevant facts contained in the record, and in the ing to the banking factors are consistent with ap­ light of the factors set forth in section 3(c) of the proval of the application. Act, it is the Board’s judgment that the proposed Convenience and needs of the communities in­ transaction would be in the public interest, and that volved. The major banking needs of the communi­ the application should be approved. □ Digitized for FRASER 738 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD'S STAFF of Commerce, who resigned as a director on Au­ The Board of Governors of the Federal Reserve gust 18, 1970. System announced the appointment of Frank O’Brien, Jr., as a Special Assistant to the Board, FOREIGN CREDIT RESTRAINT GUIDELINES effective September 8, 1970. The Board of Governors on September 16, 1970, Formerly Chief of Information Services for the amended an export loan definition in the guide­ International Finance Corporation in the World lines under which U.S. banks limit their lending Bank Group Department of Information and Pub­ to foreigners. Banks may now count export term lic Affairs, Mr. O’Brien has been a foreign corre­ loans of any size against their Export Term-Loan spondent and a financial-economic writer for The Ceilings under the voluntary foreign credit restraint Associated Press; Assistant Director (Editorial) of guidelines. Heretofore, only such loans amounting the Research Staff of the Committee for Economic to $250,000 or more each were to be counted under Development; and Deputy Assistant to the Secre­ those ceilings. tary of the Treasury for Public Affairs. He is a Governor Andrew F. Brimmer, the member of graduate of the University of Missouri. the Board who has responsibility for administering The Board also appointed Ralph C. Bryant as an the guidelines, explained that the $250,000 floor Associate Adviser in the Division of International had been carried over, along with other criteria, Finance, effective September 21, 1970. from a Treasury Department reporting require­ Mr. Bryant joined the Board’s staff in June 1965 ment. The latter requirement had been adopted be­ and was appointed Assistant to the Director of the cause it was already in wide use among banks when Division of International Finance in January 1967. the Export Term-Loan Ceilings were created in He has recently returned from a year’s leave of December 1969 as a supplement to General Ceil­ absence, which he spent in London carrying out ings. Experience since that date indicates that the research under an International Affairs Fellowship dollar floor for export term loans can be dropped awarded by the Council on Foreign Relations. He without administrative difficulty and with some holds two degrees from Yale University and one benefit, particularly for smaller banks, as well as from Oxford, where he was a Rhodes Scholar. for smaller exporters who seek to arrange credits for their foreign customers. ELECTION OF DIRECTOR William D. Eberle, President and Chief Executive Use of the Export Term-Loan Ceilings, Gov­ Officer of American Standard, Inc., New York, ernor Brimmer added, has grown modestly. Pres­ New York, was elected a Class B director of the ently, these Ceilings in the aggregate are $1.4 Federal Reserve Bank of New York on Septem­ billion—compared to an aggregate of $10 billion ber 10, 1970, for the remainder of a term expiring of General Ceilings—and outstanding loans on December 31, 1970. Mr. Eberle succeeds Arthur exports shipped since December 1, 1969, have only K. Watson, who resigned as a director effective recently surpassed $100 million. Some export April 16, 1970, prior to assuming his post as U.S. term loans, he pointed out, are exempt from the Ambassador to France. guidelines under other provisions; for example, loans to Canadians, loans guaranteed by the Ex­ APPOINTMENT OF DIRECTOR port-import Bank, and loans covered by FCIA Wayne W. Pyeatt, President of National Bank of (Foreign Credit Insurance Association) insurance. Commerce, Memphis, Tennessee, was appointed a The amendment is effective starting with the director of the Memphis Branch of the Federal current monthly reporting period. This means that Reserve Bank of St. Louis, effective September 10, export term loans, regardless of size, granted after 1970, for the remainder of a term expiring Decem­ August 31, 1970, may be charged to a bank’s Ex­ ber 31, 1972. Mr. Pyeatt succeeds Lewis K. port Term-Loan Ceiling rather than to its General McKee, Chairman of the Board of National Bank Ceiling. Digitized for FRASER 739 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

ASSETS AND LIABILITIES OF OVERSEAS BRANCHES OF MEMBER BANKS, END OF YEAR, 1968 AND 1969 Tn millions of dollars, unless otherwise indicated U.S. Near England and Continental Latin overseas areas East and Ireland Europe America Far East and trust Africa Total Item territories 1968 1969 (incl. 1968 1969 1968 1969 Baha­ 1968 1969 1968 1969 1968 1969 1968 1969 mas) Baha­ All mas other Assets Cash............................................... 2,201 5,806 638 1,178 251 507 267 150 146 42 59 53 41 3,335 8,004 Loans............................................. 4,933 6,990 1,416 1,813 880 891 863 1,308 1,585 551 703 137 134 9,225 12,979 Due from head offices and U.S. branches................................ 4,291 9,836 923 1,809 97 1,328 26 418 408 411 918 7 12 6,147 14,337 Other.............................................. 1,752 2,121 1,144 1,664 508 267 428 787 1,118 33 124 87 78 4,311 5,800 Total...................................... 13,17724,753 4,121 6,464 1,736 2,993 1,584 2,663 3,257 1,037 1,804 284 26523,01841,120 Liabilities Deposits: Demand.................................... 1,343 1,508 623 791 570 86 614 513 630 294 402 100 71 3,443 4,102 Time.......................................... 10,501 21,223 2,283 3,871 638 2,733 344 839 1,020 505 1,054 166 17314,93230,418 Due b t r o a n h c e h ad es . o .. f .. f . i . c .. e .. s . ... a .. n .. d .. ... U ... . . S .. . .. 64 15 105 117 152 25 112 193 322 223 213 1 2 738 806 Other.............................................. 1,269 2,007 1,110 1,685 376 149 514 1,118 1,285 15 135 17 19 3,905 5,794 Total...................................... 13,17724,753 4,121 6,464 1,736 2,993 1,584 2,663 3,257 1,037 1,804 284 26523,01841,120 Number of branches................... 35 40 46 64 178 3! 203 72 76 35 38 9 7 375 459 Note.—Data are from Board of Governors of the Federal Reserve System. OVERSEAS BRANCHES OF MEMBER BANKS conditions in the United States, balances obtained Total assets of the overseas branches of member in the Euro-dollar market for head office use banks increased by $18.1 billion, or 79 per cent, sharply increased around midyear. Loans at over­ during 1969 to a total of $41.1 billion, the Board seas branches expanded by $3.8 billion, or 41 per of Governors announced on September 3, 1970, in cent, continuing the rate of increase for 1968. Be­ releasing data showing balance sheet items of over­ cause of the growth in the number of branches in seas branches at the beginning and end of the year. the Bahamas, data for those branches are shown The data cover the 459 overseas branches in active separately in the table for 1969; for previous years operation at the end of 1969 and include assets and they were included in Latin America. liabilities payable in U.S. dollars as well as those NEW COMMUNICATIONS NETWORK payable in currencies of the countries where the The Federal Reserve announced on September 4, branches are located and in other foreign curren­ 1970, the completion of the first phase of its new cies. communications network that will result ultimate­ The Board noted that the preponderance of the ly in the transfer of money, securities, and eco­ increase in total branch assets in 1969—77 per cent nomic statistics at speeds up to 40 times faster —was again accounted for by the branches in than the conventional teletypewriter system that has Europe, particularly those in London. The $14 bil­ been in use the past 17 years. lion deposit growth in the European branches was Activation of the new electronic transfer system, almost entirely in time deposits, mainly Euro­ designed to handle the heavy communications loads dollars, which almost doubled. anticipated during the 1970’s and beyond, consti­ Amounts due from head offices and United tutes a further step in the Federal Reserve’s pro­ States branches rose by 133 per cent to $14.3 bil­ gram of adapting its operations to developments in lion. Reflecting the marked tightening of credit the data processing and transmission fields. Digitized for FRASER http://fraser.stlouisf7ed4.0org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication September 14 Industrial production continued to show little but production of some other durable and non­ change in August. Since May, the index has fluc­ durable industrial materials rose slightly. tuated narrowly. The value of retail sales also changed little and the wholesale price index was EMPLOYMENT down slightly. Nonfarm employment declined and Nonfarm payroll employment declined in August the unemployment rate edged up in August. Com­ as reductions in manufacturing and construction mercial bank credit, the money supply, and time employment more than offset moderate gains in and savings deposits increased. Between mid- services and State and local governments. The August and mid-September, yields on U.S. Gov­ average factory workweek declined to 39.9 hours ernment securities declined while yields on cor­ in August from 40.1 hours in July. The employ­ porate and municipal bonds advanced moderately. ment rate edged up to 5.1 per cent from 5.0 per cent in July, with most of the rise among teenagers. INDUSTRIAL PRODUCTION Industrial production in August was 169.0 per RETAIL SALES cent of the 1957-59 average, compared with 169.2 The value of retail sales declined slightly in August per cent in July and 174.3 per cent in August and was about 4.5 per cent above a year earlier. 1969. Output of business equipment declined fur­ Sales at nondurable goods stores declined and sales ther in August and production of consumer goods at durable goods stores were unchanged. Unit sales and materials changed little. of new domestic autos changed little, but were 5 Auto assemblies in August, after allowance per cent below a year earlier. for the model changeover period, were at an an­ nual rate of 8.5 million units, the same as in WHOLESALE AND CONSUMER PRICES July. Production of television sets and furniture Wholesale prices declined 0.1 per cent from July increased, but output of household appliances de­ to August (July 14 to August 11) on a seasonally clined from the high July level, and production of adjusted basis, the first decline since April 1967, consumer staples eased off. Among materials, out­ as prices of farm and food products dropped 0.4 put of steel and construction materials was down, per cent and prices of industrial commodities rose 0.2 per cent. Sharp increases were posted for fuels and power, lumber and plywood, and rubber and INDUSTRIAL PRODUCTION plastics products. However, prices for the metals 1957-59=100 and metal products group declined further. On a seasonally adjusted basis, consumer prices rose 0.3 per cent in July; higher prices for services and nonfood commodities accounted for most of the increase. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit increased $5.6 billion in August, matching the sharp rise recorded in July. Outstanding loans sold outright to affiliates de­ clined moderately—the first monthly reduction since December 1969. Slightly more than half of the August expansion in bank credit was attribut­ able to growth in security holdings. A considerable 1966 1968 '.970 1966 1968 1970 volume of Treasury issues was acquired in the F.R. indexes, seasonally adjusted. Latest figures: August. mid-month financing operation. Acquisitions of 741 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

municipal securities and Federal agency issues ing in July while excess reserves remained about during the month were also quite substantial. unchanged. The money supply increased $1.9 billion in August following only moderate growth over the SECURITY MARKETS May-July period. U.S. Government deposits also Yields in all sectors of the U.S. Government securi­ increased. Time and savings deposits continued to ties market declined between mid-August and midexpand substantially, but somewhat less rapidly September. Treasury bill yields generally fell some than in July when deposit inflows were extremely 5 to 15 basis points, while rates on notes and bonds heavy. Growth in large negotiable CD’s, in con­ declined about 10 to 20 basis points. The 3-month sumer-type time and savings deposits at weekly re­ bill was bid at around 6.40 per cent in midporting banks, and in total time and savings September. deposits at country banks continued relatively Yields on corporate and municipal bonds ad­ strong over August. vanced moderately, on balance. Net borrowed reserves of member banks aver­ Stock prices and trading volume on the major aged about $725 million in the four weeks ending exchanges rose during the final weeks of August, August 26 compared with $1,135 million in July but prices leveled off in early September, with and $730 million over the second quarter. Member volume returning to the average level prevailing bank borrowings declined in August after increas­ in July. PRICES INTEREST RATES Wholesale Consumer PER CENT ALL ITEMS ALL COMMODITIES TREASURY BILLS LONG-TERM GOVERNMENT SECURITIES ALL ITEMS LESS FOOD FARM PRODUCTS FOOD AND FOODS F.R. DISCOUNT RATE 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, July; Wholesale, August. years or more and for 90-day Treasury bills. Latest figures: week ending Sept. 4. 742 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial and Business Statistics CONTENTS A 3 GUIDE TO TABULAR PRESENTATION A 3 STATISTICAL RELEASES: REFERENCE 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 Continued on next page A 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 U.S. STATISTICS— Continued A 58 Industrial production A 62 Business activity A 62 Construction A 64 Labor force, employment, and earnings A 66 Consumer prices A 66 Wholesale prices A 68 National product and income A 70 Flow of funds INTERNATIONAL STATISTICS: A 72 U.S. balance of payments A 73 Foreign trade A 74 U.S. gold transactions A 75 U.S. reserve assets; position in the IMF A 76 International capital transactions of the United States A 89 Foreign exchange rates A 90 Money rates in foreign countries A 91 Arbitrage on Treasury bills A 92 Gold reserves of central banks and governments A 93 Gold production TABLES PUBLISHED PERIODICALLY: A 94 Stock market credit A 103 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 G uide to T abular P resen ta tio n SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations P Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds HI, IV Quarters U * A U m se o s u o n f t s fu i n n d s s ignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other politi­ A heavy vertical rule is used in the following in­ cal subdivisions. stances: (1) to the right (to the left) of a total when the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance last) provide (1) the source or sources of data that do sheet, (3) to the left of memorandum items. not originate in the System; (2) notice when figures are “U.S. Govt, securities” may include guaranteed issues estimates; and (3) information on other characteristics of U.S. Govt, agencies (the flow of funds figures also of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds........................................ Aug. 1970 A-70—A-71.9 Banks and branches, number, by class and State................................... Apr. 1970 A-94—A-95 Semiannually Flow of funds: Assets and liabilities: Banking offices: 1955-68............................................ Nov. 1969 A-71.10—A-71.20 Analysis of changes in number___ Aug. 1970 A-96 Flows: On, and not on, Federal Reserve 1955-68............................................ Nov. 1969 A-70—A-71.9 Par List, number........................... Aug. 1970 A-97 Income and expenses: Federal Reserve Banks.................... Feb. 1970 A-94—A-95 Annually Insured commercial banks............. Aug. 1970 A-98 Member banks: Bank holding companies: Calendar year................................ Aug. 1970 A-98—A-107 List of, Dec. 31, 1969....................... June 1970 A-94 Income ratios................................ Aug. 1970 A-l 08—A-l 13 Banking offices and deposits of Operating ratios............................ Aug. 1970 A-l 14—A-119 group banks, Dec. 31, 1969.. .. Aug. 1970 A-95 Stock exchange firms, detailed debit Banking and monetary statistics, 1969 Mar. 1970 A-94—A-107 and credit balances........................... Sept. 1970 A-94—A-95 July 1970 A-94—A-97 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases............................................................................ June 1970 A-l 02 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS o SEPTEMBER 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 f w i h c i t a n s t g e r o e c n u u c r t y ­ ­ Bought repur­ ad­ assets 3 stand­ out­ chase vances ing right agree­ ment Averages of daily figures 1939—Dec............................. 2,510 2,510 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 20,336 142 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—..........Dec................... 52,529 52,454 75 765 3,251 56,610 10.367 6,810 1969—Au g 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—Ja n 56,273 56,182 91 965 3,442 2,114 62,867 11,141 155 6,856 Feb............................. 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 6,391 Apr............................. 55,982 55,787 195 877 3,275 2,209 62,424 11.367 400 6,919 May........................... 57,265 57,179 86 1,066 2,985 1,708 63,087 11.367 400 6,967 June........................... 57,630 57,584 46 978 2,824 1,369 62,843 11.367 400 6,999 July............................ 58,219 58,003 216 1 ,432 2,901 1,302 63,912 11.367 400 6,994 Aug.p......................... 59,544 59,255 289 850 2,427 1 ,248 64,116 11.367 400 7,009 Week ending— 1970—June 1 3 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 7 7 , , 3 5 8 4 8 0 5 5 7 7 , , 4 29 3 5 8 1 9 0 3 2 1 ,3 9 1 47 4 2 2, , 6 7 0 8 1 5 1 1 , , 2 1 2 9 8 2 6 6 2 2 , , 7 3 2 6 9 8 1 11 1 . , 3 3 6 6 7 7 4 4 0 0 0 0 6 6 , , 9 9 8 9 1 1 17..................... 57,977 57,977 748 2,950 1 ,371 63,084 11.367 400 6,996 24..................... 57,299 57,299 977 3,180 1 ,424 62,918 11.367 400 7,004 July 8 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 57 7 , , 6 7 7 4 1 4 5 57 7 . , 6 7 7 4 1 4 1 1, , 0 3 8 8 1 4 2 3 , , 6 21 3 3 9 1 1 , , 5 3 2 7 1 8 6 6 3 3 , , 0 6 1 8 7 0 1 1 1 1 . .3 3 6 6 7 7 4 40 0 0 0 7 7 . , 0 00 0 7 0 2 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 58 8 , , 5 4 3 0 5 2 5 5 7 8 . , 6 3 7 0 1 9 7 2 3 2 1 6 1 1 , , 7 4 7 6 1 9 2 3 , , 6 1 8 9 8 4 1 1 , , 2 2 5 5 7 0 6 6 4 4 , , 2 5 0 3 8 0 1 1 1 1 . . 3 3 6 6 7 7 4 40 0 0 0 6 6 , ,9 9 8 9 8 0 29..................... 58,267 58,267 1,271 2,588 1 ,307 63,469 11.367 400 6,993 Aug. 1 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 8 9 , , 8 27 4 4 0 5 5 8 8 , , 5 8 6 26 0 2 44 8 8 0 1 1 , , 2 0 1 5 3 0 2 2 , , 4 4 2 0 1 8 1 1 , , 4 3 0 5 3 4 6 6 3 4 , , 7 3 1 3 3 9 1 1 1 1. . 3 3 6 6 7 7 4 4 0 0 0 0 7 7, . 0 0 0 0 2 0 19p................... 59,972 59,470 502 705 2,658 1,299 64,701 11.367 400 7,006 26 p................... 59,679 59,679 667 2,481 1,068 63,931 11.367 400 7,011 End of month 1970—June........................... 57,714 57,714 420 2,562 1,556 62,284 11.367 400 6,986 July.............................. 5$,597 58,597 1,292 2,485 1,343 63,754 11.367 400 6,999 Aug.*5......................... 59,978 59,618 360 536 1 ,610 1 ,124 63,311 11.367 400 7,041 Wednesday 1970—June 3....................... 57,698 757,344 354 1,335 2,782 1,215 63,095 11.367 400 6,989 10....................... 57,552 757,552 834 2,184 1,261 61,869 11.367 400 6,994 17....................... 57,823 757,823 459 3,622 1,414 63,356 11.367 400 6.999 24....................... 57,005 6 757,005 840 2,490 1,541 61,910 11.367 400 7.008 July 1....................... 57,714 757,714 923 2,688 1,361 62,720 11.367 400 7.009 8....................... 57,671 757.671 1,598 2,748 1,399 63,450 11.367 400 6.988 15....................... 58,839 757.671 1,168 2,036 2,819 1,233 65,059 11.367 400 6.988 22....................... 58,138 6758,138 1,216 2,794 1,284 63,469 11.367 400 6,991 29....................... 58,338 758,338 820 2,334 1,330 62,859 11.367 400 6.999 Aug. 5*>................... 59,590 758,597 993 643 2,414 1,392 64,114 11.367 400 6.999 12*..................... 59,243 758,850 393 460 2,228 1,424 63,392 11.367 400 7,003 19p................... 59,773 759,508 265 846 2,528 1,207 64,421 11.367 400 7.010 26p..................... 59,618 759,618 1,044 2,379 1,087 64,165 11.367 400 7,013 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ 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 r c C t e c i u i n o i u n l r c a n r ­ y ­ ­ T h c i u r o n a e r g l s a y d s h s ­ ­ Tr u e r a y s­ with r e F s F e . e i R o r g v r . n ­ e B s, a nks Other 2 c O o F u a t . c h n R ­ e t . s r 3 c b a O F i a p l l t . i n i i h R a t t d i a ­ e e . l r s 3 B W F a . n R it k h . s re c r C s e a o e n n u i r n c d v r y s ­ es Total Period or date Averages of daily figures 7,609 2,402 616 7-\9 248 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. 51,328 671 881 141 469 2,062 .22,430 4,649 27,079 .........................1969—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. 52,722 655 1,206 170 642 2,044 23,580 5,278 28,858 .........................1970—Jan. 52,113 610 1,060 182 710 2,160 23,112 4.864 27,976 ......................................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 23,323 4,773 28,096 ......................................Apr. 53,490 544 1,440 182 845 2,215 23,105 4,805 27,910 ....................................May 54,125 495 1,065 165 801 2,255 22,703 4.864 27,567 ....................................June 54,699 450 1,147 191 763 2,253 23,170 4,958 28,128 ....................................July 54,766 451 1,058 177 830 2,275 23,335 5,002 28,337 ....................................Aug.* Week ending— 53,774 524 1 ,230 134 801 2,292 22,721 4,892 27,613 ...................1970—June 3 54,037 516 819 145 793 2,369 22,448 5,021 27,469 ..........................................10 54,261 499 1 ,010 157 835 2,180 22,905 4,798 27,703 ..........................................17 54,172 484 1,195 207 800 2,189 22,641 4,632 27,273 ..........................................24 54,178 456 1,129 163 786 2,256 22,823 5,000 27,823 ...............................July 1 54,653 444 1,311 186 791 2,321 22,739 5.108 27,847 .......................................... 8 54,990 437 1,197 225 742 2,282 23,090 5,132 28,222 ..........................................15 54,747 455 1 ,036 181 748 2,170 23,949 4,424 28,373 ..........................................22 54,488 460 1,059 173 758 2,217 23,075 5.108 28,183 ..........................................29 54,588 461 1,054 190 790 2,337 23,060 5,082 28,142 ..............................Aug. 5 54,898 450 996 171 866 2,355 23,372 5,216 28,588 ..........................................12 54,917 442 1 ,169 179 921 2,175 23,671 4,858 28,529 ..........................................19* 54,702 451 1,045 187 786 2,231 23,307 4,854 28,161 ..........................................26* End of month 54,351 439 1,005 168 806 2,275 21,991 4,999 26,990 .......................1970—June 54,463 461 1 ,200 199 782 2,343 23,072 5,081 28,153 .......................................July 54,663 470 1 ,056 173 750 2,352 22,655 5,038 27,693 ....................................Aug.* Wednesday 53,978 528 1,253 131 815 2,335 22,811 4,898 27,709 .................1970—June 3 54,310 511 880 117 795 2,377 21,640 5,028 26,668 ........................................10 54,347 495 1 ,092 197 797 2,152 23,042 4,801 27,843 ........................................17 54,223 475 1 ,136 246 815 2,208 21,581 4,634 26,215 ..........................................24 54,475 444 900 185 813 2,284 22,396 4,999 27,395 ..............................July 1 55,050 439 1 ,059 160 864 2,339 22,294 5,113 27,407 ........................................ 8 55,003 457 1 ,133 173 696 2,143 24,210 5,135 29,345 ........................................15 54,719 461 981 180 770 2,182 22,934 4,428 27,362 ........................................22 54,587 464 1 ,038 171 767 2,234 22,364 5,115 27.479 ........................................29 54,848 459 754 169 804 2,356 23,490 5,074 28,564 ..............................Aug. 5* 55,060 446 1,043 207 916 2,111 22,379 5,218 27,597 ........................................12* 54,932 451 1,041 172 877 2,193 23,531 4,858 28,389 ........................................19* 54,730 463 937 189 749 2,252 23,626 4,854 28.480 ........................................26* 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. 1 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 □ SEPTEMBER 1970 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t l a d l qu R ir e e ­ d 1 Excess r F in o a .R g w t s . ­ s F er r r v e e ­ e e s T h o e t ld al qu R ir e e ­ d 1 Excess r F in o . a R g w t s . ­ se F r r r e v e ­ e e s T h o e t ld al qu R ire e d ­ 1 Excess F in r . a R o g t w s . ­ se F r r r v e e ­ e e s Banks Banks Banks 1939—Dec............... 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............... 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............... 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............... 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1960—Dec............... 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 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—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............... 28,096 27,978 118 822 -704 5,482 5,453 29 227 -198 1,295 1,316 -21 61 -82 May............. 27,910 27,729 181 976 -795 5,307 5,302 5 176 -171 1,285 1 ,287 -2 23 25 June............. 27,567 27,380 187 888 -701 5,201 5,164 37 132 -95 1,250 1,247 3 3 July.............. 28,128 27,987 141 1 ,358 -1,217 5,315 5,306 9 269 -260 1 ,290 1 ,293 -3 129 -132 Aug.*.......... 28,337 28,197 140 828 -688 5,377 5,379 -2 160 -162 1 ,297 1 ,304 -7 61 68 Week ending— 1969—Aug. 6.... 27,042 26,791 251 1,090 -839 4,844 4,829 15 18 -3 1 ,214 1 ,199 15 15 13. . .. 26,960 26,627 333 1 ,329 -996 4,843 4,784 59 135 -76 1,211 1,210 1 139 -138 20.... 27,159 27,100 59 1 ,221 -1,162 5,101 5,164 -63 136 -199 1,224 1 ,216 8 8 27.... 26,909 26,697 212 1 ,204 -992 4,941 4,896 45 64 -19 1 ,145 1 ,164 -19 6 -25 1970— 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 22.... 28,372 28,214 158 969 -811 5,643 5,584 59 525 -466 1,340 1,336 4 20 -16 29.... 28,126 28,014 112 894 -782 5,375 5,394 -19 86 -105 1,271 1 ,279 -8 86 -94 May 6. ... 28,587 28,237 350 774 -424 5,547 5,440 107 93 14 1,343 1,317 26 86 -60 13___ 27,745 27,717 28 810 -782 5,293 5,378 -85 150 -235 1,269 1,292 -23 14 -37 20.... 28,095 27,881 214 1,179 -965 5,515 5,433 82 332 -250 1,311 1 ,312 -1 -1 27... . 27,331 27,287 44 933 -889 5,023 5,069 -46 86 -132 1,251 1 ,243 8 8 June 3 . .. . 27,613 27,418 195 1,224 -1 ,029 5,198 5,145 53 287 -234 1 ,245 1 ,262 -17 -17 10.... 27,469 27,333 136 857 -721 5,175 5,193 -18 195 -213 1 ,281 1,262 19 19 17. ... 27,703 27,430 273 658 -385 5,289 5,244 45 11 34 1,229 1 ,252 -23 -23 24... . 27,273 27,185 88 887 -799 5,099 5,052 47 97 -50 1,209 1,203 6 6 July 1 . .. . 27,823 27,550 273 991 -718 5,221 5,176 45 119 -74 1,253 1,267 -14 -14 8___ 27,847 27,773 74 1,294 -1,220 5,188 5,233 -45 389 -434 1,286 1,275 11 36 -25 15___ 28,222 27,992 230 1,681 -1,451 5,439 5,381 58 493 -435 1,308 1,306 2 125 -123 22.... 28,373 28,188 185 1,386 -1,201 5,418 5,384 34 166 -132 1 ,316 1 ,311 5 200 -195 29.... 28,183 28,030 153 1,231 -1,078 5,259 5,260 -1 80 -81 1 ,268 1 ,286 -18 182 -200 Aug. 5 . . .. 28,142 27,954 188 1,010 -822 5,238 5,300 -62 147 -209 1 ,288 1,283 5 100 -95 12.... 28,588 28,309 279 1,174 -895 5,579 5,522 57 431 -374 1,331 1,339 -8 86 -94 \9V. .. 28,529 28,447 82 680 -598 5,487 5,535 -48 55 -103 1 ,346 1,350 -4 100 -104 26*... 28,161 28,036 125 660 -535 5,215 5,200 15 77 -62 1 ,247 1,259 -12 14 -26 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Reserves Period Borrow­ Borrow­ ings at Free ings at Free F.R. reserves F.R. reserves T h o e t ld al Required1 Excess Banks T h o e t l a d l Required1 Excess Banks 6 4 3 , , , 3 3 1 1 9 4 7 4 0 5 3 1 , , , 9 0 9 7 5 1 3 6 4 1 1 , , 1 3 4 0 8 1 3 8 8 96 1 1 1 , ,3 1 3 8 0 2 8 2 2 4 21 , ,,2 5 5 7 16 6 08 3 1 , , 5 4 8 6 0 9 6 6 7 1,0 6 81 7 01 1 4 46 4 3 9 8 6 6 6 0 5 8 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 9 9 9 4 4 3 1 5 9 — — — D D D e e e c c c . . . 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ................................1950—Dec. 7 8 8 , , , 7 9 3 3 9 5 5 3 0 7 8 8 , , , 8 7 3 5 1 2 1 3 5 1 2 6 0 8 2 0 1 1 2 2 9 5 0 0 - -1 1 0 28 3 20 7 7 6 , , , 3 7 6 4 0 8 7 7 9 7 6 6 , , , 3 0 9 3 3 6 7 9 6 4 6 3 0 2 7 3 8 0 4 7 55 0 4 5 3 3 8 1 3 5 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 9 9 9 6 6 6 3 4 0 — — — D D D e e e c c c . . . 9 9, , 5 0 0 5 9 6 9 8 , , 4 9 4 8 9 9 6 61 7 222280 - - 1 1 6 5 1 9 8 8 , , 2 6 1 1 9 9 7 8 , , 8 3 8 1 9 8 3 3 0 3 1 0 1 9 61 2 2 1 3 4 8 0 ................................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. 1100,,686184 1 1 0 0 , , 7 6 3 5 0 4 8 1 4 4 4 46 8 1 0 - - 3 4 9 4 6 7 1 10 0 , , 1 1 1 1 3 4 9 9 , , 9 9 2 2 8 8 1 18 8 5 6 4 6 6 37 8 - - 4 2 5 8 1 3 1 11 0 00, , ,8 9 784 7 58 0 1 1 1 0 0 0 , , , 8 9 7 4 6 7 1 4 2 -2 4 7 7 6 4 5 5 3 7 7 1 9 2 - - - 4 5 5 7 2 5 3 5 8 1 1 1 0 0 0 , , , 3 1 2 3 7 5 5 6 2 1 1 1 0 0 0 , , , 1 0 0 5 0 6 8 7 6 1 1 1 7 9 6 7 5 0 4 3 4 2 4 4 1 3 7 - - - 2 1 2 5 4 8 3 4 2 1 1 0 1 , , 9 2 7 9 5 6 1 1 0 1 , , 9 3 1 1 3 4 -1 6 8 2 4 5 5 3 5 5 - - 4 4 7 7 3 3 1 1 10 0 0, , ,1 5 22 7 92 4 0 1100,,140032 1 17 8 1 8 2 4 8 0 3 0 - - 2 1 1 1 2 2 ................................1970—Jan. 10,737 10,802 -65 436 -501 9,963 159 276 -117 11,038 11,066 -28 372 -400 10,281 10,143 138 162 -24 1 1 0 0 , , 9 84 7 9 8 1 1 0 0 , , 9 8 4 4 8 7 302 4 4 8 7 9 7 - - 4 4 4 8 7 7 1 1 0 0 , , 3 2 4 6 0 7 1100,,119222 1 1 4 4 8 5 2 3 6 0 7 0 --115222 .............................................June 11,074 11,118 -44 682 -726 10,449 10,270 179 278 -99 ..............................................July 11,164 11 ,173 -9 424 -433 10,498 10,341 158 183 -25 Week ending— 10,834 10,788 46 434 -388 10,150 9,975 175 638 -463 10,747 10,703 44 466 -422 10,159 9,930 229 589 -360 ..................................................13 1 1 0 0 , , 7 7 7 1 4 0 1 1 0 0 , , 8 6 1 9 1 0 -3270 4 50 5 1 3 - -4 4 8 9 1 0 1 10 0 , , 1 0 1 6 3 0 9 9 , , 9 9 0 47 9 1 1 5 6 1 6 6 6 2 33 4 - -4 47 6 3 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 2 7 0 10,914 10,822 92 400 -308 10,221 10,040 181 292 -111 .........................1970—Apr. 1 10,794 10,891 -97 301 -398 1100,,220280 10,029 179 178 1 .................................................. 8 1 1 1 1 1 1 , , , 2 0 0 6 0 93 9 8 1 1 1 1 1 1 , , , 1 0 1 2 7 9 8 2 4 -3 - 1 3 5 4 5 3 3 1 9 0 1 5 6 - - - 3 3 5 8 4 1 1 1 4 1 1 0 0 , , 4 2 1 9 1 6 1 1 10 0 0 , , , 2 0 1 6 6 6 9 6 6 1 1 14 5 3 2 4 0 21 1 1 3 11 9 8 -6 11 9 52 . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 1 2 2 5 9 2 11,210 11,145 65 382 -317 10,487 10,335 152 213 -61 10,882 10,913 -31 442 -473 10,301 10,134 167 204 -37 ..................................................13 10,986 10,993 -7 553 -560 10,283 10,143 140 294 -154 ..................................................20 10,748 10,793 -45 397 -442 10,309 10,182 127 450 -323 ..................................................27 10,877 10,884 -7 598 -605 10,293 10,127 166 339 -173 ......................................June 3 1 1 1 0 0 0 , , , 9 7 7 7 9 1 1 2 0 1 1 1 0 0 0 , , , 8 7 8 8 6 3 9 8 4 - - 1 4 7 0 7 4 3 4 4 5 0 6 2 1 7 8 - - - 4 3 6 5 2 3 1 5 8 1 1 1 0 0 0 , , , 2 2 2 2 5 1 3 3 4 1 1 1 0 0 0, , , 1 0 0 4 6 4 1 6 4 1 1 14 7 18 9 2 2 2 2 5 1 2 5 9 9 -1 - -7 7 1 1 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 1 7 4 0 10,922 10,879 43 539 -496 10,427 10,228 199 333 -134 ......................................July 1 1 1 11 1 0, , ,1 2 92 1 51 6 0 11 1 11 1 ,, , 21 0 13 4 06 0 - - 1 9 5 0 6 6 6 7 2 9 8 9 9 9 - - - 7 6 8 1 9 0 9 3 4 1 1 1 0 0 0 , , , 4 4 3 2 2 5 3 3 4 1 1 1 0 0 0 , , , 2 1 2 8 6 2 3 9 5 1 1 1 8 9 4 5 8 0 2 2 32 7 4 1 4 0 -1 - - 8 4 81 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 5 2 8 11 ,123 11 ,141 -18 683 -701 10,533 10,343 190 286 -96 ..................................................29 66 11,142 11,076 532 -466 10,474 10,295 179 231 -52 ......................................Aug. 5 11,199 11,186 13 527 -514 10,479 10,262 217 130 87 ..................................................12 11,192 11,249 -57 338 -395 10,503 10,313 190 187 3 ..................................................19p 11 ,129 11,132 -3 372 -375 10,570 10,445 125 197 -72 ..................................................26 p 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 □ SEPTEMBER 1970 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as 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 B o t B w a F o n i r n . k R ­ g s . s F f t i b e n r u N d a a t n e n e e n d r t r k s s a ­ . l 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 o v e c r g i f r e v . e n e d t s ch P a u s r e ­ s Sales t a w c tr o t a i - o n w n s a ­ s y 2 b c b o u h P a f y a u n n i s r k n e e ­ s t s g s b o S e a f l a l n n l i e n k e s g s t d L ea o t l a o e n rs s 3 de f r i a r n o o l g w e m s r ­ s4 lo N a e n t s Total—46 banks 1970—July 1........... -57 352 3,763 -4,173 34.8 7,308 3,545 2,801 4,508 745 757 173 584 8........... -23 772 4,730 -5,525 45.9 8,004 3,274 2,719 5,285 555 1 ,017 119 898 15........... 49 1 ,039 5,544 -6,535 53.2 8,448 2,903 2,420 6,028 484 642 191 451 22........... 99 670 4,788 -5,360 43.6 7,805 3,017 2,570 5,235 446 1 ,019 155 864 29........... 60 557 4,311 -4,807 39.9 7,275 2,964 2,476 4,798 488 1 ,978 142 1,836 Aug. 5........... 60 476 5,304 -5,720 47.3 7,926 2,622 2,601 5,325 21 1 ,963 176 1,786 12........... 119 744 7,159 -7,783 62.5 9,853 2,695 2,448 7,405 247 1 ,753 210 1 ,543 19........... 38 265 6,023 -6,250 50.1 8,507 2,483 2,336 6,171 148 1 ,509 156 1 ,353 26........... 16 200 5,199 -5,383 45.0 7,945 2,746 2,506 5,443 245 2,152 140 2,011 8 in New York City 1970—Julv 1........... 52 93 1 ,012 -1,052 22.4 2,339 1 ,327 1 ,218 1 ,121 109 573 100 473 8........... -13 360 1 ,821 -2,194 46.0 2,699 878 878 1 ,821 723 62 661 15........... 29 468 1 ,710 -2,148 43.8 2,689 980 930 1 ,760 50 485 140 345 22........... 66 139 1 ,087 -1 ,161 23.8 2,222 1 ,134 1 ,098 1 ,123 36 688 126 562 29........... 48 29 831 -812 17.0 2,135 1 ,304 926 1 ,210 379 1 ,096 112 983 Aug. 5........... -29 114 1 ,788 -1 ,931 40.1 2.742 954 934 1 ,806 18 1 ,089 152 937 12........... 61 382 3,040 -3,361 66.8 3,641 600 601 3,040 1 ,123 189 934 19........... 10 21 2,146 -2,157 42.8 2,757 611 611 2,146 774 133 640 26........... 24 56 1 ,545 -1 ,577 33.5 2,357 812 757 1 ,600 ' 56 1 ,270 114 1 ,157 38 outside New York City 1970—July 1........... -110 260 2,751 -3,120 42.9 4,969 2,218 1 ,583 3,387 636 183 72 111 8........... -11 412 2,909 -3,331 45.9 5,305 2,396 1 ,841 3,464 555 293 56 237 15........... 20 571 3,835 -4,387 59.4 5,758 1,924 1 ,490 4,268 434 158 51 106 22........... 33 531 3,701 -4,199 56.7 5,584 1,883 1 ,472 4,112 410 330 29 301 29........... 12 528 3,480 -3,995 54.8 5,140 1 ,660 1 ,551 3,589 109 882 30 852 Aug. 5........... 89 362 3,516 -3,789 52.1 5,183 1 ,668 1 ,665 3,519 3 874 24 849 12........... 58 362 4,118 -4,422 59.6 6,213 2,094 1 ,848 4,365 247 631 21 610 19........... 27 243 3,877 -4,093 55.0 5,750 1 ,873 1 ,725 4,025 148 735 23 713 26. ...... 144 3,654 -3,806 52.4 5,588 1 ,934 1 ,745 3,843 189 881 27 855 5 in City of Chicago 1970—July 1........... 1,101 -1,098 94.8 1 ,509 409 409 1,101 69 69 8........... 36 893 -923 79.2 1 ,279 386 386 893 101 101 15........... 125 1 ,445 -1,561 130.0 1,805 360 360 1 ,445 41 41 22........... 200 1 ,330 -1 ,521 127.5 1 ,589 259 259 1 ,330 62 62 29........... 182 995 -1 ,175 100.2 1 ,309 314 314 995 103 103 Aug. 5........... 100 1,088 -1,177 100.6 1 ,416 328 328 1 ,088 118 118 12........... 86 1,572 -1,658 135.5 1 ,882 310 310 1 ,572 113 113 19........... 100 1,327 -1,420 115.2 1 ,594 267 267 1 ,327 110 110 26........... 14 1,343 -1,359 119.1 1 ,628 284 284 1 ,344 110 110 33 others 1970—July 1 ........ -113 260 1,650 -2,023 33.1 3,460 1,810 1,174 2,286 636 114 72 42 8........... -17 375 2,016 -2,408 39.5 4,026 2,010 1,455 2,571 555 193 56 137 15........... 11 446 2,390 -2,825 45.7 3,953 1,564 1,130 2,823 434 116 51 65 22........... 25 331 2,371 -2,678 43.1 3,995 1,623 1,213 2,782 410 268 29 239 29........... 10 346 2,485 -2,820 46.1 3,830 1,346 1,237 2,594 109 779 30 749 Aug. 5........... 78 262 2,428 -2,612 42.8 3,768 1,340 1,337 2,431 3 755 24 731 12........... 58 276 2,546 -2,764 44.6 4,330 1,785 1,538 2,793 247 518 21 497 19........... 21 143 2,550 -2,673 43.0 4,156 1,605 1,458 2,698 148 625 23 603 26........... -6 130 2,311 -2,447 40.0 3,960 1 ,650 1,462 2,499 188 771 27 744 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

SEPTEMBER 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. 133 Federal Reserve Bank Secs. 13 and 13a 1 Sec. 10(b) 2 A R u a 1 g t 9 e . 7 0 o 31 n , Ef d fe a c t t e ive Pre ra v t i e ous A R u a 1 g t 9 e . 7 0 o 31 n , Ef d fe a c t t e ive Pre r v at i e ous A R u a 1 g t 9 e . 7 0 o 3 n 1, Ef d fe a c t t e ive Pre r v at io e us Boston................................................. 6 Apr. 8, 1969 5 Vi 6 Vi Apr. 8, 1969 6 71/2 Feb. 2, 1970 7 New York........................................... 6 Apr. 4, 1969 5 Vi 61/2 Apr. 4, 1969 6 m Apr. 4, 1969 7 Philadelphia........................................ 6 Apr. 4, 1969 5 Vi 6*/i Apr. 4, 1969 6 71/2 Feb. 10, 1970 7 Cleveland............................................ 6 Apr. 4, 1969 5 Vi 61/2 Apr. 4, 1969 6 71/2 Apr. 4, 1969 7 Richmond........................................... 6 Apr. 4, 1969 5 Vi 61/2 Apr. 4, 1969 6 7Vi Feb. 18, 1970 7 Atlanta................................................ 6 Apr. 4, 1969 51/2 6 Vi Apr. 4, 1969 6 71/2 Feb. 10, 1970 7 Chicago............................................... 6 Apr. 4, 1969 5Vi 61/2 Apr. 4, 1969 6 7 Vi Mar. 4, 1970 7 St. Louis.............................................. 6 Apr. 4, 1969 5 Vi 6 Vi Apr. 4, 1969 6 7Vi Mar. 16, 1970 7 Minneapolis........................................ 6 Apr. 4, 1969 5 Vi 6 Vi Apr. 4, 1969 6 71/2 Apr. 4,1969 6 Vi Kansas City........................................ 6 Apr. 4, 1969 5 Vi 6Vi Apr. 4, 1969 6 7Vi Feb. 18, 1970 7 Dallas................................................... 6 Apr. 4, 1969 5 Vi 6 Vi Apr. 4, 1969 6 71/2 Feb. 18, 1970 7 San Francisco.................................... 6 Apr. 4, 1969 5 Vi 6 Vi Apr. 4, 1969 6 71/2 Feb. 2, 1970 7 1 Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for Federal maturity: 4 months. Reserve Bank purchase. Maximum maturity: 90 days except that dis­ 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 -IVi 1955—Cont. 1960 A Oc p t r . . 3 1 1 0 1 5 . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . 9 . . . . . . 4 . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . t t V V 1 i i-1 tV 1 1 i N Se o p v t . . 2 1 1 9 3 8 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1/a 2 21 - ~ V /2 a 2 2 1 1A /4 2 2 2 2 1 V V V / a 2 i a A S Ju e u n p g e t . . 1 1 1 9 3 2 4 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 V V 3 3 i i - % - - 3 4 4 1 /2 4 3 3 3 V * i 1946 1956 1963 Apr. 25......................... fc-l Apr. 13................... 21/2-3 July 17............................ 3 -31/2 May 10......................... 1 20................... lit 26............................ 3 Vi 1948 Aug. 2 3 4 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i i 3 s 3 3 Nov. 24.... 1 .. 9 .. 6 .. 4 .................. 3 Vi-4 Jan. 12......................... 1 -H/4 Wa 1957 30............................ Aug. 2 1 1 3 3 9. . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . 9 . . . 5 . . . . . . 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wa m 1 - V W a i N D A e u o c g v . . . 2 1 9 2 5 . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 31 - - / 3 3 2 1 i / / 2 2 Dec. 1 6 3 ... .. 1 . 9 .. 6 .. 5 .................. 4 41 - / 4 2 Vi f t 1967 Aug. 21......................... 1 Vi-IVa IVa 1958 Apr. 7............................ 4 -4 Vi 4 25......................... m Wa Jan. 22................... 2^-3 3 1 4 4 4 J A M F a 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \ I W W V V a a 2 i I W l - - - - V I 2 W 2 a i V a a 1 1 1 W W V V V a a a 4 i A A O N 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 7 3 4 1 8 5 2 3 . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 22 W m * Y V a 2 2 2 a 4 W - - V r - - V 2 2 2 3 4 3 a i V V 1 4 a a 2 2 2 2 i W W W V i a a a i D A A N M e u o p a c g v r r . . . . . 2 2 2 2 3 2 1 1 1 1 2 0 7 0 6 0 8 9 6 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . . . . . . . . . . . . . . . . . . . 9 . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 5 5 4 V i V / 5 5 4 5 5 i i i 1 V - - - V - - V / 5 5 5 5 a 2 4 i i 1 V V V /2 i i i 5 5 f 5 5 4 f 1 V V * V t t /2 a i i 1955 1959 1969 Apr. 14......................... 1 Vi-IVa IVi Mar. 6................... 2 Vi-3 3 Apr. 4........................... 5 Vi-6 15......................... 1 Vi-IVa Wa 16................... 3 3 8........................... 6 A M u a g y . 4 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IVa W -2 a Va W W a a J M un ay e 2 1 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 - V 3 i % 3 3 V Vi i 1970 1 5 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 W a - -2 2 V V a a 2 2 Sept. 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 V 4 i-4 4 4 In effect Aug. 31, 1970. t Preferential rate of Vi 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 □ SEPTEMBER 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 4-3 deposits 2 deposits 2-4 (all classes of banks) Time depos­ its Reserve Country Other Effective date i b C r a e e c s n n i e k t t r y r s v a e l 3 b s c R a e i r n t e v y k ­ e s C ba t o r n u y k n s ­ c b l a a ( o n a s f l s k l e s s ) Effective date i $ U 5 n c m d it e i y r l ­ ba $ n O 5 k v m s er il ­ $ U 5 n m de b il r a ­ nk $ s O 5 v m er il ­ d S i e n i p a t g s v o s ­ s­ $ U 5 ti n m m d e e il r ­ d ep $ O 5 o s v m i e ts r il ­ lion lion lion lion lion lion In effect Dec. 31, 1949. 22 18 12 1966—July 14,21. •16 Vi 6 12 64 64 Sept. 8, 15. 1951—Jan. 11,16.......... 23 19 13 Jan. 25, Feb. 1. 24 20 14 1967—Mar. 2. 31/2 1953—July 9,1............ 22 19 13 Mar. 16. 3 1954—June 24, 16.......... 21 July 29, Aug. 1. 20 18 12 1968—Jan. 11,18.... I6I/2 17 12 121/2 1958—Feb. 27, Mar. 1. 191/2 171/2 in/2 Mar. 20, Apr. 1. 19 17 11 1969—Apr. 17............. 17 171/2 121/2 13 Apr. 17................. I8I/2 Apr. 24................. 18 I6I/2 In effect Aug. 31,19707 17 m/2 121/2 13 1960—Sept. 1................. 171/2 Nov. 24................. Present legal Dec. 1................. I6I/2 requirement: 1962—July 28................. (3) Minimum......... 10 7 3 3 3 Oct. 25, Nov. 1. Maximum........ 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central foreign banks, except that only a 3 per cent reserve is required against reserve or reserve city banks and the second to the change at country such borrowings that do not exceed a specified base amount. For details banks. For changes prior to 1950 see Board’s Annual Reports. concerning these requirements, see the amendments to Regulations D 2 Demand deposits subject to reserve requirements are gross demand and M on pp. 656 and 657 of the Aug. 1969 Bulletin. deposits minus cash items in process of collection and demand balances 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation due from domestic banks. club accounts became subject to same requirements as savings deposits. 3 Authority of the Board of Governors to classify or reclassify cities 6 See preceding columns for earliest effective date of this rate. as central reserve cities was terminated effective July 28, 1962. 7 For change in requirements against certain time deposits effective Oct. 4 Beginning Oct. 16, 1969, a member bank is required under Regula­ I, 1970, see amendment to Regulation D beginning on p. 721. tion M to maintain, against its foreign branch deposits, a reserve equal to 10 per cent of the amount by which (1) net balances due to, and certain Note.—All required reserves were held on deposit with F.R. Banks assets purchased by, such branches from the bank’s domestic offices and June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member (2) credit extended by such branches to U.S. residents exceed certain banks were allowed to count part of their currency and coin as reserves; specified base amounts. Regulation D imposes a similar 10 per cent reserve effective Nov. 24, 1960, they were allowed to count all as reserves. For requirement on borrowings by domestic offices of a member bank from 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, June 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

SEPTEMBER 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.............. 4Vi 12 months or more. . 4 Other time deposits:2 Less than 12 months. 3% Multiple maturity:3 30-89 days......, 4 4Vi 90 days-1 year... 5 1 year to 2 years. 5 5Vi 2 years and over.. 5% Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more 4 1 year to 2 years.. 5 Vi 5 Vi 9 6 0 m d o a n y t s h t s o t o 6 1 m 2 o m nt o h n s t . h . s . 2 3 1 % /z 4‘/2 51/2 $1 2 0 0 y , e 0 a 0 r 0 s a a n n d d o o v v e er r : . . 5*/4 Less than 90 days........ 1 4 30-59 days........... 5 Vi (4) (30-89 days) 60-89 days........... 5*/4 (4) 90-179 days......... 5 Vi 5 Vi 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 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member banka as estab­ Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, lished by the Board of Governors under provisions of Regulation Q; p. 167. however, a member bank may not pay a rate in excess of the maximum 3 Multiple-maturity time deposits include deposits that are automati­ rate payable by State banks or trust companies on like deposits under cally renewable at maturity without action by the depositor and deposits the laws of the State in which the member bank is located. Beginning that are payable after written notice of withdrawal. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6V4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6Vi percent on maturities of those in effect for member banks. 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 b l 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 b l 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 June 17, 1970 Four weeks; ending July 15, 1970 Gross demand—Total---- 176,864 42,339 7,309 60,999 66,217 Gross demand—Total. .. 179,584 41,777 7,415 62,873 67,518 Interbank........................ 21 ,787 9,503 1 ,291 8,538 2,456 Interbank....................... 22,365 9,535 1 ,328 8,901 2,601 U.S. Govt........................ 4,538 790 216 1 ,734 1,799 U.S. Govt....................... 6,467 1 ,231 347 2,762 2,127 Other................................ 150,540 32,047 5,802 50,728 61,963 150,753 31,012 5,741 51,210 62,790 Net demand 1..................... 132,587 24,886 5,735 46,491 55,475 Net demand 1................... 135,604 25,469 5,839 47,949 56,347 Time..................................... 155,327 15,176 4,808 56,864 78,479 157,752 15,661 5,120 57,807 79,164 Demand balances due Demand balances due from dom. banks........... 9,739 912 115 2,488 6,224 from dom. banks......... 9,665 538 118 2,547 6,462 Currency and coin............ 4,872 420 89 1 ,523 2,841 Currency and coin........... 4,968 421 90 1 ,551 2,907 Balances with F.R. Balances with F.R. Banks............................... 22,657 4,751 1 ,163 9,324 7,419 22,823 4,816 1 ,175 9,376 7,457 Total reserves held............ 27,529 5,171 1 ,252 10,847 10,260 Total reserves held........... 27,791 5,237 1 ,265 10,927 10,364 Required.......................... 27,367 5,163 1,255 10,845 10,105 27,625 5,211 1,263 10,961 10,191 Excess.............................. 162 8 -3 2 155 166 26 2 -34 173 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 □ SEPTEMBER 1970 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1970 1970 1969 Aug. 26 Aug. 19 Aug. 12 Aug. 5 July 29 Aug. 31 July 31 Aug. 31 Assets 11,045 11,045 11,045 11,045 11,045 11,045 11,045 10,027 400 400 400 400 400 400 400 211 209 209 207 202 215 207 151 Discounts and advances: 1,044 826 425 603 780 536 1,252 1,514 20 35 40 40 40 Acceptances: 37 37 37 37 37 33 37 40 30 38 30 22 Federal agency obligations—Held under repurchase 21 161 31 39 U.S. Govt, securities: Bought outright: Bills................................................................................ 24,311 24,201 23,543 23,290 23,031 24,311 23,290 19,985 32,600 32,600 32,420 32,420 32,420 32,600 32,420 30,553 2,707 2,707 2,887 2,887 2,887 2,707 2,887 4,143 159,618 159,508 158,850 158,597 158,338 159,618 58,597 54,681 Held under repurchase agreements............................. 244 393 832 329 230 Total U.S. Govt, securities................................................ 59,618 59,752 59,243 59,429 58,338 59,947 58,597 54,911 Total loans and securities.................................................. 60,699 60,686 59,740 60,308 59,195 60,577 59,926 56,526 Cash items in process of collection................................. *9,113 *10,091 *9,565 *9,736 9,113 *8,338 8,376 7,693 Bank premises...................................................................... 122 122 122 121 121 121 121 114 Other assets: Denominated in foreign currencies............................. 280 294 294 291 288 280 290 1,929 IMF gold deposited 2.................................................... 210 210 210 210 210 210 210 228 All other............................................................................ 475 581 798 770 711 513 722 464 Total assets........................................................................... *82,555 *83,638 *82,383 *83,088 81,285 *81,699 81,297 77,132 Liabilities F.R. notes............................................................................. 48,068 48,261 48,390 48,193 47,932 47,985 47,810 45,151 Deposits: Member bank reserves................................................... *23,62^ *23,531 *22,379 *23,490 22,364 *22,655 23,072 22,787 U.S. Treasurer—General account............................... 937 1 ,041 1 ,043 754 1,038 1,056 1,200 894 Foreign.............................................................................. 189 172 207 169 171 173 199 143 Other: IMF gold deposit 2.................................................... 210 210 210 2:10 210 210 210 228 All other....................................................................... 539 667 706 594 557 540 572 215 Total deposits....................................................................... *25,501 *25,621 *24,545 *25,2:17 24,340 *24,634 25,253 24,267 Deferred availability cash items....................................... 6,734 7,563 7,337 7,322 6,779 6,728 5,891 5,597 Other liabilities and accrued dividends........................... 614 628 616 627 575 667 664 525 Total liabilities..................................................................... *80,917 *82,073 *80,888 *81,359 79,626 *80,014 79,618 75,540 - Capital accounts Capital paid in..................................................................... 688 688 688 687 686 688 686 665 Surplus................................................................................... 669 669 669 669 669 669 669 630 Other capital accounts....................................................... 281 208 138 373 304 328 324 297 Total liabilities and capital accounts.............................. *82,555 *83,638 *82,383 *83,088 81,285 *81,699 81,297 77,132 - ___ - Contingent liability on acceptances purchased for foreign correspondents.................................................. 255 255 259 261 239 253 239 159 U.S. Govt, securities held in custody for foreign account. ............................................................................ 12,452 12,199 12,130 12,128 11,726 12,489 11,803 8,058 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)....................... 51,131 51,237 51,186 51,177 51,063 51,183 51,119 48,001 Collateral held against notes outstanding: Gold certificate account................................................. 3,322 3,322 3,322 3,322 3,322 3,322 3,322 3,282 U.S. Govt, securities....................................................... 49,420 49,420 49,170 49,110 49,110 49,420 49,110 46,031 Total collateral..................................................................... 52,742 52,742 52,492 52,432 52,432 52,742 52,432 49,313 1 See note 7 on p. A-5. 2 See note 1 (b) at top of p. A-75. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON AUGUST 31, 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 la le n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S o t u . is M ap in o n li e s ­ K C s a a it n s y ­ Dallas F c S i r s a a c n n o ­ Assets 11,045 569 2,653 608 889 1,072 541 1,889 486 133 569 407 1,229 Special Drawing Rights certif. acct.. . . 400 23 93 23 33 36 22 70 15 7 15 14 49 967 108 173 82 62 66 183 43 30 44 47 25 104 215 9 24 11 25 13 29 31 11 7 15 13 27 Discounts and advances: Secured by U.S. Govt, securities----- 178 11 42 6 37 4 11 33 5 9 4 16 Other..................................................... 358 1 137 39 11 142 4 23 1 Acceptances: 33 33 Held under repurchase agreements.. 30 30 Federal agency obligations—Held 31 31 U.S. Govt, securities: Bought outright.................................. 159,618 2,993 15,161 3,014 4,600 4,433 3,155 9,766 2,135 1,220 2,367 2,653 8,121 Held under repurchase agreements.. 329 329 60,577 3,005 15,763 3,020 4,676 4,437 3,177 9,941 2,144 1 ,252 2,372 2,669 8,121 Cash items in process of collection... 11,478 657 1,773 611 866 778 1,082 1 ,950 584 421 766 785 1 ,205 Bank premises.......................................... 121 2 8 2 10 11 17 17 11 8 18 8 9 Other assets: Denominated in foreign currencies.. 280 14 274 14 25 14 18 41 10 6 12 16 36 IMF gold deposited 3 ............... 210 210 All other............................................... 513 36 124 25 36 40 25 91 16 13 19 23 65 Total assets.............................................. 85,806 4,423 20,895 4,396 6,622 6,467 5,094 14,073 3,307 1,891 3,833 3,960 10,845 Liabilities F.R. notes................................................ 48,952 2,783 11 ,524 2,750 3,992 4,375 2,554 8,638 1 ,853 851 1 ,837 1,829 5,966 Deposits: Member bank reserves...................... 22,655 828 6,475 976 1 ,510 1 ,115 1,357 3,203 736 563 1 ,024 1,333 3,535 U.S. Treasurer—General account.. 1 ,056 60 173 45 110 107 77 59 95 64 98 49 119 Foreign.................................................. 173 7 463 8 13 8 10 22 5 3 6 8 20 Other: IMF gold deposit 3........................ 210 210 All other........................................... 540 i 470 3 5 12 2 11 1 3 2 2 28 Total deposits.......................................... 24,634 896 7,391 1 ,032 1 ,638 1,242 1 ,446 3,295 837 633 1 ,130 1 ,392 3,702 Deferred availability cash items.......... 9,868 631 1 ,357 497 796 710 955 1 ,772 536 356 771 621 866 Other liabilities and accrued dividends 667 33 175 32 49 47 33 114 23 14 26 28 93 Total liabilities........................................ 84,121 4,343 20,447 4,311 6,475 6,374 4,988 13,819 3,249 1,854 3,764 3,870 10,627 Capital accounts Capital paid in........................................ 688 32 183 35 61 35 45 101 24 16 29 39 88 Surplus....................................................... 669 32 177 34 60 34 43 99 23 15 28 37 87 Other capital accounts........................... 328 16 88 16 26 24 18 54 11 6 12 14 43 Total liabilities and capital accounts.. 85,806 4,423 20,895 4,396 6,622 6,467 5,094 14,073 3,307 1 ,891 3,833 3,960 10,845 Contingent liability on acceptances purchased for foreign correspond- 253 12 564 13 23 13 38 9 6 11 14 33 1 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................................................... 51 ,183 2,921 11,998 2,830 4,190 4,512 2,713 8,965 1 ,949 889 1 ,927 1 ,978 6,311 Collateral held against notes out­ standing: Gold certificate account.................... 3,322 250 500 300 510 580 1 ,000 155 22 5 U.S. Govt, securities......................... 49,420 2,730 11,600 2,700 3,750 3,970 2,900 8,250 1 ,880 885 1 ,975 2,030 6,750 Total collateral........................................ 52,742 2,980 12,100 3,000 4,260 4,550 2,900 9,250 2,035 907 1 ,975 2,035 6,750 1 See Note 7 on p. A-5. 5 After deducting $189 million participations of other Federal Reserve 2 After deducting $206 million participations of other Federal Reserve Banks. Banks 3 See note 1(b) to table at top of p. A-75. Note.—Some figures for cash items in process of collection and 4 After deducting $110 million participations of other Federal Reserve for member bank reserves are preliminary. Banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ SEPTEMBER 1970 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G h p 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 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 m re s a d h t o e i u f r m 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 u i c r f r h ts i . ty tions 1969—July. 3,495 3,251 200 3,428 3,251 200 10 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 Apr. 1,124 747 1,124 747 May 2,225 835 244 2.017 835 244 17 -9,414 167 11,106 June 2,659 I ,612 641 2,449 1 ,612 641 23 146 July. 1 ,626 744 1,626 744 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 f i h t t a y s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c f i h t t a y s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s s G e it c o i u e v s r t, ­ (n p m u e a t r g e c r r n h e e t e a ­ s ­ 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 u e t s t e r e s ­ ­ , changei 1969—July.... 23 560 560 44 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 1,794 Dec.. . . 3,336 3,336 -165 -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 Apr.. . . 3,685 3,338 723 34 6 49 811 May.. . 16 -1,692 953 1 ,299 799 -34 -15 -49 702 June... 37 905 905 407 -10 397 July.... 2,008 2,008 882 5 887 i 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 i o o d f Total P st o e u rl n in d g s s A c u h s il 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 t l n d h d e e s r r s ­ f S r w an is c s s 1968—Dec. 2,061 1,444 8 433 165 4 3 1969—May 1,889 1,542 50 176 100 15 4 June 1,834 1,564 50 115 15 86 2 July. 1,670 1,383 50 24 15 196 * Aug. 1,929 1,571 224 15 114 3 Sept. 2,330 1,693 204 315 114 2 Oct.. 1,823 1,494 1 7 313 2 5 Nov. 1,370 1,273 1 60 6 2 27 Dec. 1,967 1,575 1 199 60 125 3 4 1970—Jan.. 975 605 1 100 60 201 3 4 Feb. 1,179 215 1 159 801 3 <» Mar. 1,169 207 1 157 801 3 * Apr. 1,101 199 1 93 805 3 * May 510 199 * 94 205 * 11 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Aug. 26 Aug. 19 Aug. 12 Aug. 5 July 29 Aug. 31 July 31 Aug. 31 Discounts and advances—Total....................................... 1,044 846 460 643 816 536 1,292 1,514 Within 15 days.................................................................. 1,041 843 456 598 768 534 1,244 1,506 16 days to 90 days........................................................... 3 3 4 45 48 2 48 8 91 days to 1 year............................................................. Acceptances—T otal............................................................. 37 67 37 37 37 63 37 62 Within 15 days.................................................................. 16 43 4 4 6 42 5 37 16 days to 90 days........................................................... 21 24 33 33 31 21 32 25 91 days to 1 year............................................................. US Government securities—Total................................ 59,618 59,773 59,243 59,590 58,338 59,978 58,597 54,950 Within 15 days1............................................................... 3,189 3,557 3,674 4,206 3,146 2,019 2,264 1,746 16 days to 90 days........................................................... 11,655 11,352 10,363 10,269 10,099 12,644 10,631 10,199 91 days to 1 year............................................................. 13,420 13,510 13,873 13,782 13,760 13,961 14,369 21,556 Over 1 year to 5 years.................................................... 25,266 25,266 25,395 25,395 25,395 25,266 25,395 12,229 Over 5 years to 10 years................................................. 5,464 5,464 5,314 5,314 5,314 5,464 5,314 8,549 Over 10 years.................................................................... 624 624 624 624 624 624 624 671 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 SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1969—July................................. 9,242.8 3,908.6 2,244.4 5,334.2 3,089.8 67.6 136.1 71.8 49.4 40.3 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................................. 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................................. 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................................. 9,793.5 4,232.1 2,309.1 5,561.4 2,525.2 72.4 148.8 74.2 52.0 42.9 Mar................................. 9,842.9 4,336.7 2,291.4 5,506.2 3,214.8 70.7 145.7 72.2 50.3 41.3 Apr................................. 10,163.2 4,422.0 2,417.9 5,741.3 3,323.3 72.9 149.7 75.8 52.2 42.6 May................................ 10,018.3 4,249.4 2,460.0 5,768.9 3,309.0 73.5 150.6 78.4 53.4 43.2 Juner.............................. 10,143.8 4,366.0 2,443.3 5,777.8 3,334.6 73.3 149.3 77.5 52.9 42.9 July................................ 10,218.4 4,324.3 2,508.2 5,894.1 3,385.8 73.3 145.3 79.4 53.8 43.4 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 □ SEPTEMBER 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 19 66 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--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 Apr............. 53,034 37,012 6,053 2,105 136 2,920 8,646 17,152 16,022 4,446 11,075 226 266 3 4 May........... 53,665 37,509 6,084 2,134 136 2,953 8,744 17,458 16,157 4,488 11,173 225 264 3 4 June........... 54,351 37,994 6,128 2,157 136 2,983 8,837 17,753 16,357 4,567 11,298 223 262 3 4 July............ 54,473 37,959 6,145 2,132 136 2,943 8,743 17,861 16,513 4,621 11,404 221 260 3 4 1 Outside Treasury and F.R. Banks. Before 1955 details are slightly 2 Paper currency only; $1 silver coins reported under coin. overstated because they include small amounts of paper currency held by the Treasury and the F.R. Banks for which a denominational break­ Note.-—Condensed from Statement of United States Currency and down is not available. Coin, issued by the Treasury. KINDS OUTSTANPING 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 July 31, against Treasury F.R. Banks 1970 gold and cash Banks and silver and Agents July June July certificates Agents 31 30 31 Gold........................................................................................ 11,367 (11,045) 2322 Gold certificates................................................................... (11,045) 311,044 1 Federal Reserve notes......................................................... 51,120 82 3,309 47,730 47,626 44,695 Treasury currency—Total.................................................. 7,011 59 209 6,743 6,725 6,424 Standard silver dollars................................................... 485 3 482 482 482 Fractional coin................................................................. 5,904 32 208 5,664 5,646 5,345 United States notes......................................................... 323 24 298 297 293 In process of retirement4............................................... 300 300 300 305 Total—July 31, 1970......................................................... 569,498 (11.045) 462 11.044 3,519 54,473 June 30, 1970......................................................... 568,783 (11.045) 439 11.044 2,949 54,351 July 31,1969......................................................... 564,828 (10,027) 631 10,026 3,052 51,120 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

SEPTEMBER 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 1 Total component deposit justed 1 deposits1 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—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 47.0 156.2 197.9 204.2 46.6 157.6 198.3 5.3 May...................................................... 203.9 47.6 156.2 199.6 199.9 47.3 152.6 200.0 6.4 June...................................................... 203.6 47.8 155.9 201.0 201.7 47.7 154.0 201.2 6.5 July....................................................... 204.3 48.1 156.2 206.9 202.7 48.2 154.5 206.9 6.8 Aug.*................................................... 206.2 48.2 158.0 211.8 202.9 48.3 154.7 212.8 7.1 Week ending— 1970—July 15................................................ 204.3 48.0 156.2 206.0 203.8 48.4 155.5 206.0 6.0 22................................................ 202.8 48.1 154.8 207.6 200.8 48.2 152.6 207.6 6.3 29................................................. 204.3 48.0 156.2 209.1 201.6 47.7 153.9 209.1 7.8 Aug. 5................................................. 204.5 48.1 156.4 210.2 203.5 48.3 155.1 210.8 6.9 12................................................. 206.1 48.2 157.9 210.9 203.5 48.6 154.9 212.0 5.9 19................................................ 206.7 48.2 158.4 211.6 202.9 48.4 154.5 212.6 6.3 26................................................. 206.2 48.1 158.0 212.7 201.3 48.0 153.3 213.7 9.1 Sept. 2p............................................... 206.1 48.1 158.0 213.8 203.4 47.9 155.5 214.8 7.4 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 billionsof dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements2 Total member bank deposits plus nondeposit S.A. N.S.A. items 3 Period Total Non­ Demand Demand borrowed Required Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 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—Aug.............. 27.40 26.21 27.16 285.3 152.5 129.9 2.9 283.6 153.1 127.0 3.5 303.8 302.1 Sept.............. 27.40 26.38 27.14 285.7 152.1 129.2 4.4 284.6 151.8 128.3 4.4 304.2 303.1 Oct................ 27.35 26.21 27.13 283.5 151.5 128.9 3.1 283.8 151.1 129.3 3.5 302.2 302.5 Nov.............. 27.78 26.54 27.55 285.8 151.1 129.1 5.6 284.7 150.0 130.3 4.3 305.5 304.3 Dec............... 27.93 26.81 27.71 285.8 151.5 129.4 4.9 288.6 149.7 134.4 4.6 305.7 308.6 1970—Jan................ 28.00 26.97 27.82 284.8 149.4 130.1 5.3 288.5 148.9 135.6 3.9 304.8 308.5 Feb............... 27.72 26.62 27.52 282.9 148.8 128.5 5.6 282.3 148.8 127.4 6.1 303.4 302.8 Mar.............. 27.72 26.78 27.54 286.2 150.6 129.8 5.9 285.4 151.0 128.5 5.8 306.1 305.3 Apr............... 28.22 27.35 28.05 290.2 153.5 131.4 5.2 290.7 153.8 132.5 4.5 309.6 310.2 May............. 27.89 26.92 27.69 289.1 154.6 131.4 3.0 287.9 154.9 127.7 5.4 309.3 308.2 June............. 27.90 27.06 27.71 290.5 155.7 129.9 4.8 289.6 155.7 128.5 5.4 311.1 310.3 July............... 28.04 26.69 27.90 296.0 160.7 130.9 4.4 296.3 160.9 129.6 5.8 315.8 316.1 Aug.*........... 28.59 27.79 28.41 303.3 165.0 132.1 6.3 301.1 166.0 129.2 5.9 322.0 319.9 1 Averages of daily figures. Data reflect percentages of reserve require­ comparable with earlier data due to the withdrawal from the system on ments made effective Apr. 17, 1969. Required reserves are based on Jan. 2, 1969, of a large member bank. average deposits with a 2-week lag. 3 Total member bank deposits subject to reserve requirements, plus 2 Averages of daily figures. Deposits subject to reserve requirements in­ Euro-dollar borrowings, bank-related commercial paper, and certain clude total time and savings deposits and net demand deposits as defined other nondeposit items. by Regulation D. Private demand deposits include all demand deposits ex­ cept those due to the U.S. Govt., less cash items in process of collection Note.—Due to changes in Regulations M and D, required reserves and demand balances due from domestic commercial banks. Effective June include increases of approximately $400 million since Oct. 16, 1969. 9, 1966, balances accumulated for repayment of personal loans were elim­ Back data may be obtained from the Banking Section, Division of Research inated from time deposits for reserve purposes. Jan. 1969 data are not and Statistics, Board of Governors of the Federal Reserve System, Wash­ ington, D.C. 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANKS AND THE MONETARY SYSTEM □ SEPTEMBER 1970 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Gold Bank credit assets, stock Treas­ net— Date D S R c c r p e a a i a r e g t n w t e c h i d s f i i t a i n s 1 ­ l g s r t c o e u i a u n n u r n g c y r t d ­ ­ y ­ Total n L e o t a 2 n > s , 3 Total U.S. s C b a T a a v o r n n i m e n d k a g l s s . s ury R F s B e e e a d s c n e u e r k r r v i a s t e l ies Other4 r O s i e t t i c h e u s e ­ r 3 c T l a i i a n p a t o n i e b i e t t d a t i s a l l l ­ , c d u e T r a p r o n o e t d n s a i c l t y s c C o m a n a u p i a c e s n i n t ­ c t t d a s . , l 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—Aug. 275, 10.400 6,800 512,600 317.700 112.900 57.900 54.900 82,000 529.800 461.800 67.900 Sept. 24. , 10.400 6,800 514.300 321.200 110.700 56.700 53.900 82,400 531.400 465.200 66,200 Oct. 29.. 10.400 6,800 515.500 321,500 112,600 57.800 54,800 81,500 532,700 465,900 66,800 Nov. 26. 10.400 6,800 520.800 323.700 115,100 58,400 56.700 81.900 538.000 469.300 68,700 Dec. 31. 10,367 6,849 532,663 335,127 115,129 57,952 57,154 82,407 549,879 485,545 64,337 1970—Jan. 28. 11,600 6.900 517,100 323,600 111.900 56.300 55.600 81,600 535,500 468.600 67.000 Feb. 25., 11,700 6.900 515.500 323.200 110.400 54.700 55.700 81.900 534,100 466.200 67.900 Mar. 25., 11,800 6.900 519.800 325,300 110.400 54.800 55.600 84,100 538.400 472,100 66,300 Apr. 29*, 11,800 6.900 523.300 325.900 111,600 55.500 56.100 85,800 542.000 476.300 65.800 May 27*. 11,800 7.000 525,000 326.100 113,000 55.900 57.100 85.900 543.800 474.800 69.000 June 24*. 11,800 7.000 528,400 330.100 111,300 54.300 57,000 87,000 547,200 478,400 68.800 July 29*. 11,800 7.000 537.500 335,000 114,800 56.500 58,300 87,700 556,300 488.800 67,500 Aug. 26*. 11,800 7.000 543.800 336.900 117.700 58,100 59.600 89,200 562,600 493.600 69.000 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 t o 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 e m 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 n e F i e g o t n r­ 9 , T h c i u r n o 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—Aug. 275... 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. 29.... 194.400 44.000 150.000 195.800 44,500 151.400 259.600 193.100 66,500 2.300 700 6.500 1,100 Nov. 26.. .. 196.400 45.000 151.400 199,500 46,300 153,200 259.100 192.500 66,600 2.400 700 6.900 900 Dec. 31.... 206,800 45,400 161.400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970—Jan. 28.... 196.400 45.300 151.100 198.900 44,700 154.300 258,700 191.600 67,100 2.500 600 6.500 1.300 Feb. 25.... 195.000 45.300 149.700 194.100 44,800 149.300 260,400 193.000 67,400 2,600 600 7,600 900 Mar. 25... . 200.000 45.900 154.100 196.900 45.400 151,600 264.100 196.200 68,000 2,700 600 6,300 1,500 Apr. 29*... 198.100 46.300 151.800 198,200 45.900 152.300 267.100 199.200 68,000 2,600 600 6,400 1,400 May 27*... 198.200 46,500 151.700 195.800 46.400 149.400 268.600 200,300 68.300 2.400 500 6.200 1.300 June 24*... 199.200 46,600 152,600 196,600 46,600 150.000 269,800 201.000 68,800 2.500 500 7.900 1,100 July 29*... 199.100 46.800 152,300 198.900 46.900 152.000 278.300 209.100 69,200 2,600 500 7.500 1,000 Aug. 26*. .. 199,800 46.800 153.000 198.100 47.100 151.000 282,900 213.200 69,800 2.400 500 8,700 900 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 Figures for this and later dates take into account the following changes Note.—For back figures and descriptions of the consolidated condition (beginning June 30, 1969) for commercial banks: (1) inclusion of con­ statement and the seasonally adjusted series on currency outside banks and solidated reports (including figures for all bank-premises subsidiaries and demand deposits adjusted, see “Banks and the Monetary System,” Section other significant majority-owned domestic subsidiaries) and (2) reporting 1 of Supplement to Banking and Monetary Statistics, 1962, and Bulletins of figures for total loans and for individual categories of securities on a for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti­ gross basis—that is, before deduction of valuation reserves. 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

SEPTEMBER 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 Interbank3 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 Other 2 ac­ mand Time Timei ury counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,S >82 4'*,349 15,952 23 7,173 14,278 1945—Dec. 31... 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,( )65 io:5,921 30,241 219 8,950 14,011 1947—Dec. 315.. 116,284 38,051 69,221 9,006 37,502 155,377 144,103 12,792 240> 1,3431 94,367r 35,360 65 10,059 14,181 1966—Dec. 31... 322,661 217,726 56,163 48,772 69,119 403,368 352,287 19,770 967 4,992 ! 167,751 158,806 4,859 32,054 13,767 1967—Dec. 30... 359,903 235,954 62,473 61,477 77,928 451,012 395,008 21,883 1,314 5,234 t 184,066i 182,511 5,777 34,384 13,722 1968—Dec. 31 ... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24,747 1,211 5,01C1 199,901 203,154 8,899 37,006 13,679 1969—Aug. 276.. 405,860 280,680 54,330 70,850 76,200 499,750 401,770 21,410 870 4,86C > 179,840l 194,790 21,270 38,660 13.683 Sept. 24... 408,670 284,300 53,200 71,170 75,910 503,590 404,160 21,260 810 7,61C > 180,550 I 193,930 21,610 38,860 13,681 Oct. 29... 409,210 284,420 54,41C 70,380 76,960 504,920 406,800 22.190 880 6,18C I 184,150 i 193,400 21,240 39,310 13.683 Nov. 26 .. . 413,080 287,130 55,070 70,880 82,340 514,470 413,300 23.190 680 6,61C 1 190,100 > 192,720 21,960 39,450 13.684 Dec. 31... 421,597 295,547 54,709 71,341 89,984 530.665 435,577 27,174 735 5,054!• 208,870• 193,744 18,360 39,978 13,661 1970—Jan. 28... 410,980 287,330 52,960 70,600 77,400 506,770 406,380 21,550 620 6,32CI 186,130 i 191,760 22,620 40,030 13,662 Feb. 25... 408,890 286,680 51,400 70,810 78,900 506,780 406,390 22,230 620 7,38C> 182,940 193,220 22,620 40,230 13,665 Mar. 25 . . . 412,410 288,230 51,520 72,660 76,360 508,420 407,980 21,810 580 6,140l 183,090 196.360 22,840 40,370 13.664 Apr. 29*.. 416,630 290,090 52.250 74,290 78,410 515,110 413,240 21,600 660 6,230i 185,380 199,370 23,530 40,590 13.665 May 27*.. 4i6,300 289,520 52,500 74,280 78,930 515,590 412.680 22,180 690 5,960 183,390 200,460 23,080 40,850 13.665 June 24*.. 419,430 293,280 51,080 75.070 77,570 517,710 414^250 22,260 700 7,650 182,460 201,180 22,870 40,920 13.670 July 29*.. 423,720 294,920 53.250 75,550 75,330 519,260 421,620 22,400 1,270 7,300 181,290 209.360 19,850 4a,290 13.670 Aug. 26*.. 428,250 296,480 54,780 76,990 79,220 528,070 428,710 22,850 1,550 8,430 182,400 213,480 20,160 41,500 13.670 Members of F.R. System: 1941—Dec. 31... 43,521 18,021 19,539 5,961 23,123 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31.. . 107,183 22,775 78,338 6,070 29.845 138,304 129,670 13,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 ... 97,846 32,628 57,914 7,304 32.845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31... 263,687 182,802 41,924 38,960 60,738 334,559 291,063 18,788 794 4,432 138,218 128,831 4,618 26,278 6,150 1967—Dec. 30... 293,120 196,849 46,956 49,315 68,946 373,584 326,033 20,811 1,169 4,631 151,980 147,442 5,370 28,098 6,071 1968—Dec. 31... 325,086 220,285 47,881 56,920 73,756 412,541 355,414 23,519 1 ,061 4,309 163,920 162,605 8,458 30,060 5,978 1969—Aug. 276.. 325,413 230,654 39,754 55,005 67,843 408,644 323,063 20,433 707 4,046 146,139 151,738 19,925 31,234 5,919 Sept. 24... 327,611 233,744 38,643 55,224 67,504 411,501 324,780 20,234 683 6,576 146,468 150,819 20,322 31,374 5,910 Oct. 29... 327,288 233,260 39,725 54,303 68,596 412,130 326,768 21,182 721 5,438 149,424 150,003 19,893 31,694 5,901 Nov. 26.. . 330,002 235,055 40,276 54,671 73,107 419,571 331,350 22,138 522 5,666 153,874 149,150 20,614 31,793 5,893 Dec. 31... 336,738 242,119 39,833 54,785 79,034 432,270 349,883 25,841 609 4,114 169,750 149,569 17,395 32,047 5,869 1970—Jan. 28... 327,368 234,860 38,328 54,180 68,449 411,828 324,605 20,560 497 5,420 150,363 147,765 21,263 32,078 5,853 Feb. 25... 325,777 234,213 37,110 54,454 69,806 412,036 324,937 21,244 496 6,429 147,932 148,836 21,238 32,242 5,850 Mar. 25.. . 328,556 235,138 37,340 56,078 67,594 413,148 326,028 20,845 454 5,100 148,270 151,359 21,582 32,343 5,839 Apr. 29 ... 332,097 236,436 38,192 57,469 69,174 418,597 330,136 20,608 531 5,251 149,940 153,806 22,376 32,528 5,828 May 21... 331,389 235,805 38,259 57,325 69,710 418,609 329,541 21,183 567 4,914 148,414 154,463 21,749 32,733 5,816 June 24*.. 333,825 238,917 36,986 57,922 68,124 419,818 330,352 21,265 571 6,386 147,142 154,988 21,576 32,771 5.805 July 29*.. 337,377 240,309 38,950 58,118 65,971 420,844 336,818 21,371 1,139 6,181 146,003 162,124 18,675 33,047 5.805 Aug. 26*.. 341,096 241,594 40,305 59,197 69,769 428,607 342,995 21,825 1,423 7,054 146,996 165,697 19,059 33,223 5.805 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—Aug. 276. . 56,571 44,914 4,904 6,753 20,574 81,955 54,538 8,783 373 722 30,490 14,170 5,459 6,275 12 Sept. 24... 57,278 45,807 4,534 6,937 19,165 81,486 54,273 8,346 331 1,298 j0,286 14,012 5,422 6.256 12 Oct. 29... 56,905 45,787 4,722 6,396 21,818 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 6,773 21,845 85,405 57,931 9,540 248 1,508 31,909 14,726 5,420 6,318 12 Dec. 31... 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—Jan. 28... 57,069 45,722 4,794 6,553 20,535 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 6,726 21,808 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 7,312 21,809 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 7,633 20,778 84,145 57,536 8,927 245 968 32,116 15,280 5,756 6,290 12 May 21... 57,288 44,819 4,981 7,488 22,007 84,604 57,147 9,356 280 882 < 31,742 14,887 5,821 6,335 12 June 24... 57,819 45,634 4,300 7,885 19,404 82,845 55,737 9,224 280 998 30,419 14,816 5,231 6.304 12 July 29... 58,720 45,917 5,142 7,661 18,322 82,356 57,063 9,322 592 1,382 28,927 16,840 4,855 6,340 12 Aug. 26. .. 58,468 45,208 5,458 7,802 20,982 84,893 58,959 9,668 729 1,214 29,943 17,405 5,243 6,405 12 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS o SEPTEMBER 1970 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Class of bank lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets 3 and Demand ings counts banks 1,2 U.S. capital Totai3 Treas­ Other ac­ De­ Time Time1 ury 2 counts4 mand U.S. Govt. Other Reserve city member (cont.): City o! 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—Aug. 27 6........... 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............. 14,365 10,771 1,564 2,030 2,802 17,927 13,264 1,677 15 175 6,770 4,626 1,290 1,517 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 May 27............. 14,178 10,341 1,616 2,221 2,658 17,736 12,218 1,265 41 232 5,952 4,728 2,233 1,550 9 June 24............. 14,387 10,779 1,480 2,128 2,717 18,107 12,012 1,283 42 265 5,568 4,854 2,481 1,553 9 July 29............. 14,449 10,662 1,688 2,099 2,560 18,021 12,937 1,237 54 457 5,764 5,425 1,689 1,542 9 Aug. 26............. 14,556 10,642 1,796 2,118 2,911 18,520 12,841 1,192 58 342 5,725 5,524 2,129 1,550 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 40,108 8,514 29,552 2,042 11,286 51,898194495,—08D5ec. 63,411.8............30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31............. 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967—Dec. 30............. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............. 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Aug. 276........... 117,449 86,509 11,810 19,130 24,644 147,680 116,983 8,224 204 1,633 49,740 57,182 10,069 11,219 159 Sept. 24............. 117,698 87,577 11,110 19,011 25,301 148,736 117,685 8,329 217 2,963 49,663 56,513 10,236 11,271 159 Oct. 29............. 117,954 87,388 11,794 18,772 23,979 147,722 117,701 8,631 246 2,411 50,780 55,633 9,506 11,391 158 Nov. 26............. 118,287 87,908 11,583 18,796 26,601 150,766 118,724 8,853 167 2.213 52,603 54,888 10,518 11,381 158 Dec. 31............. 121,324 90,896 11,944 18,484 29,954 157,512 126,232 10,663 242 1,575 58,923 54,829 9,881 11,464 157 1970—Jan. 28............. 118,177 88,298 11,255 18,624 24,714 148,856 115,408 8,327 143 2,350 50,625 53,963 11,846 11,505 158 Feb. 25............. 117,265 87,839 10,775 18,651 24,467 147,785 115,117 8,231 152 2,823 49.823 54,088 11,104 11,549 158 Mar. 25............. 117,942 87,645 11,078 19,219 23,272 147,381 114,763 7,757 116 2,148 49,856 54,886 11,180 11,611 158 Apr. 29............. 119,213 88,093 11,298 19,822 25,042 150,648 117,118 8,113 159 2,304 50,306 56,236 11,788 11,715 158 May 27............. 119,002 88,033 11,287 19,682 24,393 149,816 116,945 8,213 160 1,945 49.990 56,637 11,025 11,780 157 June 24............. 119,473 88,768 11,039 19,666 24,999 150,846 118,046 8,402 163 2,880 49;842 56,759 11,272 11,798 156 July 29............. 120,894 89,581 11,665 19,648 24,422 151,834 120,708 8,374 409 2,349 50,046 59,530 9,777 11,885 156 Aug. 26............. 123,418 91,106 12,341 19,971 25,008 154,765 123,746 8,544 552 3,049 50,085 61,516 9,485 11,934 156 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 19,004 131,338 117,749 2,392 69 1,474 56,672 57,144 308 10,309 5,958 1967—Dec. 30............. 122,511 74,995 24,689 22,826 20,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Dec. 31............. 134,759 83,397 24,998 26,364 22,664 161,122 144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Aug. 276........... 137,561 88,858 21,567 27,136 19,927 161,665 139,763 2,256 111 1,542 60,279 75,575 2,680 12,257 5,739 Sept. 24............. 138,629 89,796 21,528 27,305 20,113 163,495 141,016 2,370 111 1,966 60,964 75,605 2,572 12,354 5,730 Oct. 29............. 138,484 89,744 21,542 27,198 20,195 163,194 140,714 2,325 111 1,365 61,548 75,365 2,684 12,530 5,722 Nov. 26............. 139,184 90,567 21,521 27,096 21,719 165,576 142,737 2,415 86 1,695 63,496 75,045 2,691 12,594 5,714 Dec. 31............. 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—Jan. 28............. 138,438 90,464 20,928 27,046 20,342 163,012 140,933 2,331 86 1,594 62,105 74,817 2,704 12,805 5,674 Feb. 25............. 137,842 90,463 20,438 26,941 20,492 162,686 140,364 2,340 86 1,680 60,781 75,477 2,769 12,867 5,671 Mar. 25............. 139,131 91,537 20,283 27,311 19,812 163,496 141,187 2,271 86 1,850 60,449 76,531 2,510 12,930 5,660 Apr. 29............. 140,326 92,501 20,115 27,710 20,594 165,624 143,183 2,334 86 1,746 61,519 77,498 2,303 12,988 5,649 May 27............. 140,921 92,612 20,375 27,934 20,652 166,453 143,231 2,349 86 1,855 60,730 78,211 2,670 13,068 5,638 June 24?........... 142,146 93,736 20,167 28,243 21,004 168,020 144,557 2,356 86 2,243 61,313 78,559 2,592 13,116 5,628 July 29*........... 143,314 94,149 20,455 28,710 20,667 168,633 146,110 2,438 84 1,993 61,266 80,329 2,354 13,280 5,628 Aug. 26*........... 144,654 94,638 20,710 29,306 20,868 170,429 147,449 2,411 84 2,449 61,243 81,252 2,202 13,334 5,628 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 a COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ and FDIC assets 3 bilities row­ capital ber insurance Total Loans and Total 3 Demand ings ac­ of 1,2 U.S. Other capital De­ Time counts banks Treas­ 2 ac­ mand Time l ury counts4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 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 56,086 276,600 247,176 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 53,702 295,093 260,609 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 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 30«. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13.464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 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 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 83,023 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 29,684 160,657 142,825 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 34,064 190,289 169,615 10.521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12;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 41,690 235,996 206,456 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 46,634 263,375 231,374 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 50,953 296,594 257,884 15,117 657 3,090 116,422 122,597 5,923 21,524 4,716 1969—June 306. 242,241 170,834 29,481 41,927 52,271 305,800 251,489 14,324 437 3,534 113,134 120,060 * 9,895 22,628 4,700 Dec. 31.. 247,526 177,435 29,576 40,514 54,721 313,927 256,314 16,299 361 3,049 121,719 114,855 12,279 23,248 4,668 State member: 1941—Dec. 31.. 15,950 6,295 7,500 2,155 8,145 24,688 22,259 3,739 621 13,874 4,025 1 2,246 1,502 1945—Dec. 31.. 37,871 8,850 27,089 1,933 9,731 48,084 44,730 4,- 411 8,166 24,168 7,986 130 2,945 1,867 1947—Dec. 31.. 32,566 11,200 19,240 2,125 10,822 43,879 40,505 3,978 15 381 27,068 9,062 9 3,055 1,918 1961—Dec. 30.. 63,196 38,924 17,971 6,302 18,501 84,303 74,119 6,835 199 2,066 43,303 21,716 213 6,763 1,600 1962—Dec. 28.. 68,444 43,089 17,305 8,050 17,744 88,831 76,643 6,154 231 2,351 41,924 25,983 1,914 7,104 1,544 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34;680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 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 1,2!9 47,498 40,945 2,535 8,536 1,262 1969—June 30«. 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 Dec. 31.. 90,088 65,560 10,257 14,271 24,313 119,219 94,445 9,541 248 1,065 48,030 35,560 5,116 8,800 1,201 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 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 30«. 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 Dec. 31.. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 For notes see p. A-22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ SEPTEMBER 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 membership Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Lo 1 a .2 ns T U re .S a . s­ Ot 2 her ca a a p n c i d ­ tal Total3 m D a e n ­ d Time Demand Tim l e ings co a u c n ­ ts ba o n f ks ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31............ 1,457 455 761 241 763 2,283 1,872 3:,9 1,391 253 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. 315......... 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 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 Dcc. 31........... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 Total nonmember: 1941—Dec. 31........... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 4i7 5,f;o4 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 28,649 26,495 238 5,345 7,583 1967—Dec. 30........... 67,087 39,409 15,516 12,162 8,983 77,732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—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 Dec. 31........... 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 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 Figures for this and later dates take into account the following changes and noninsured commercial banks include, a small member bank engaged (beginning June 30, 1969) for commercial banks: (1) inclusion of consol­ exclusively in trust business. idated reports (including figures for all bank-premises subsidiaries and Comparability of figures for classes of banks is affected somewhat by other significant majority-owned domestic subsidiaries) and (2) reporting changes in F.R. membership, deposit insurance status, and the reserve of figures for total loans and for individual categories of securities on a classifications of cities and individual banks, and by mergers, etc. gross basis—that is, before deduction of valuation reserves—rather than Data for national banks for Dec. 31, 1965, have been adjusted to make net as previously reported. them comparable with State bank data. 7 Regarding reclassification of New York City and Chicago as reserve Figures are partly estimated except on call dates. cities, see Aug. 1962 Bulletin, p. 993. For various changes between For revisions in series before June 30, 1947, see July 1947 Bulletin, reserve city and country status in 1960-63, see note 6, p. 587, May 1964 pp. 870-71. Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 a COMMERCIAL BANKS A 23 LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Period Securities Securities Total 1,2 Loans1,2 Total1, 2 Loans1,2 U.S. Other 2 U.S. Other 2 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—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 Aug. 27...................................................................... 397.5 270.3 56.9 70.3 394.7 269.5 54.3 70.9 Sept. 24...................................................................... 396.5 271.3 54.7 70.5 396.5 272.1 53.2 71.2 Oct. 29...................................................................... 397.6 273.8 53.5 70.3 397.2 272.4 54.4 70.4 Nov. 26...................................................................... 401.2 276.4 53.4 71.4 400.7 274.7 55.1 70.9 Dec. 31...................................................................... 401.3 278.1 51.9 71.3 410.5 284.5 54.7 71.3 1970—Jan. 28...................................................................... 398.5 276.6 50.4 71.5 397.6 274.0 53.0 70.6 Feb. 25...................................................................... 399.7 278.5 49.8 71.4 395.7 273.5 51.4 70.8 Mar. 25...................................................................... 400.9 277.6 50.3 73.0 399.0 274.8 51.5 72.7 Apr. 29*.................................................................... 402.9 276.6 52.3 74.0 402.9 276.4 52.3 74.3 May 27*.................................................................... 404.9 277.1 53.3 74.4 402.9 276.1 52.5 74.3 June 30re................................................................. 405.1 276.2 54.1 74.8 408.7 281.7 51.6 75.4 July 29*.................................................................... 410.7 279.9 55.5 75.3 410.6 281.8 53.3 75.6 Aug. 26*.................................................................... 416.3 282.4 57.2 76.6 413.4 281.6 54.8 77.0 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. 30, Dec. 31, June 30, Dec. 31, Class of Dec. 30, Dec. 31, June 30, Dec. 31, bank 1967 1968 1969 1969 bank 1967 1968 1969 1969 All commercial.... 1,283 1,216 1,150 1,131 All member—Cont. Insured................. 1,283 1,216 1,149 1,129 Other reserve city., 362 332 293 304 National member 747 730 694 688 Country................... 617 605 588 571 State member---- 232 207 187 188 All nonmember......... 304 278 269 255 All member............. 979 937 881 876 Insured.................... 304 278 268 253 Noninsured............. 2 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. 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A 24 COMMERCIAL BANKS □ SEPTEMBER 1970 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b C a l n a k s s a o n f d 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 F u a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot t h o e r, U s . e S c . u T ri r t e i a es s u 6 ry S a t n a d te call date i m nv e e n s t t s ­ e so tc ld .2 , T 3 o , t 4 al a c i i n n a d ­ l c t a u u l r l- - 5 b T r o o­ t e a s t ­ e v i d i r d i i - - - Other Bills g s lo e o c c v u a t l ­ . r O s it e t i h c e u e s r ­ s d tr u ia s l ­ k a e n r d s ot T he o rs Banks Others uals 3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total:2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,034 53,205 5,276 3,729 1968—Dec. 31..402,477 6,747259,72798,357 9,7186,6254,108 2,206 13,72965,137 58,3376,72464,466 58,570 12.967 1969—June 30io 411,429 7,226277,773 104,403 10,5525,3064,212 2,587 13,74668 j 419 61,5407,00954,044 60,080 12,305 Dec. 31..422,728 9,928286,750 108.44310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 88,912 21,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,129 3,621 1968—Dec. 31.. 399,566 6,526258,07497,741 9,7006,4094,063 2,145 13,621 64,80458,1426,655 64,028 58,288 12,650 1969—June 30io 408,620 7,067276,132 103,723 10,5345,1804,168 2,541 13,60568,10461,3376,941 53,723 59,746 11,950 Dec. 31..419,746 9,693284,945 107,68510.3145,6443,991 2,425 14,89069,66963,008 7,319 54,399 58,84011,869 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 8553,133 3.378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1968—Dec. 31.. 326,023 5,551215,671 87,819 5,921 6,1743.379 2,012 12,79750,461 45,4046,18947,881 48,423 8,498 1969—June 30io 330,587 5,444229,39792,9266,348 4,9963,473 2,386 12,82052,55647,4576,435 39,382 48,6007,764 Dec. 31.. 337,613 7,356235,63996,095 6,187 5,408 3,286 2,258 14,035 53,20748,388 6,776 39,833 47,227 7,558 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 1,172 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 93 111 564 238 11,972 1,642 558 9,772 638 604 1968—Dec. 31.. 57,047 747 42,22225,258 3,803 903 1,099 3,426 3,619 3,485 1,694 5,984 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 6,553 655 Dec. 31.. 60,333 802 47,503 28,189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 City of Chicago: 1 1 9 9 4 4 1 5 — — D D e e c c . . 3 31 1 . . . . 5 2 , , 9 7 3 6 1 0 1,3 9 3 5 3 4 7 7 6 3 0 2 21 4 1 8 23 5 3 2 2 3 2 6 51 95 40 4 1 , , 2 4 1 3 3 0 1,6 2 0 5 0 6 7 1 4 5 9 3 1 1 , , 0 8 2 6 2 4 1 1 8 8 1 2 2 1 0 93 4 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1968—Dec. 31.. 14,274 312 9,974 6,118 535 253 205 1.219 738 848 281 1,863 1,810 315 1969—June 30io 14,321 207 10,366 6,353 366 264 179 1,144 790 888 338 1,616 1,867 265 Dec. 31.. 14,365 215 10,556 6,444 337 262 186 1.219 842 862 354 1,564 1,837 192 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 1,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 38729,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1968—Dec. 31.. 119,339 2,197 81,769 34,632 1,362 1,116 1,254 588 6.005 18,939 16,9162,520 15,036 18,111 2,226 1969—June 30io 120,082 1,997 86,879 37,120 1,512 760 1,360 885 5,816 19,417 17,3542,656 11,635 17,621 1,951 Dec. 31.. 121,628 3,021 88,18037,701 1,386 878 1,300 876 6.006 19,706 17,569 2,757 11,944 16,625 1,859 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1 1 9 9 4 4 5 7 — — D De e c c . . 3 3 1 1 . . . . 3 3 5 6 , , 0 3 0 2 2 4 1 5 0 , , 5 1 9 99 6 3 1 , , 0 4 9 8 6 4 6 8 4 1 8 8 4 23 2 4 2 7 2 1 7 4 5 3 1 , ,8 8 8 2 1 7 1,9 7 7 0 9 7 2 3 2 59 4 2 2 6 2 , ,8 9 5 99 7 5 3 , ,0 7 6 3 3 2 4 2, , 1 5 0 4 8 4 1 1 7 6 , , 6 7 8 2 7 2 2 1 , , 0 3 0 4 6 2 1 1 , , 0 2 6 6 7 2 1968—Dec. 31.. 135,364 2,295 81,70621,811 4,493 720 969 119 2,14727,16424,154 1,69424,998 21,269 5,095 1969—June 30io 138,298 2,248 86,913 22,9844,779 460 963 104 2,041 28,308 25,509 1,765 21,686 22,559 4,893 Dec. 31.. 141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 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 1968—Dec. 31.. 76.454 1,196 44,056 10,5383,797 451 729 194 932 14,676 12,933 535 16,585 10,147 4,469 1969—June 30io 80,841 1,783 48,376 11,4764,204 310 739 201 925 15,863 14,083 57414,662 11,481 4,541 Dec. 31. 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 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-l 9—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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 n te d s B F w e R a r . i n R v e th k e ­ . s s r C c a e o n n u i d c r n y ­ b m a a w B d n e n i a o c s t k e t l h ­ ­ i s s c 7 ju p m D a s o d a t d s 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 k o n r­ 9 G U o .S vt . . g S l a o o t n c a v a d t t e l . c C c h o a f e e i e f n e r r f c d d i t s k ­ i ’ ­ s, IPC I b n a t n er k ­ G P S U a o o a n . s S v v d t ­ t a . . l g S l a o o t n c a v a d t t e l . IPC3 r B i o n o w g r s ­ ­ c C o a t a u a c p n l ­ i t ­ s etc. ings Total: 3 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1968- .... 21,230 7,195 18,910 167,145 22,501 2,245 5,010 16,876 9,684 173,341 1,211 368 19,110 184,8928,899 37,006 >10. . 19,801 6,258 17,591 152,995 22,929 2,258 5,639 16,930 12,717 164,141 882 351 16,690 183,976 14,74038,823 ___ 21,449 7,320 20,314 172,079 24,553 2.620 5.054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 AH insured: 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—D 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 1968- 21,230 7,165 18,343 165,527 22,310 2,117 5,000 16,774 9,442 172,319 1,155 368 19,057 184,1788,675 36,530 > i o!! 19,801 6,229 16,778 151,340 22,755 2,134 5,624 16,819 12,378 163,160 800 351 16,634 183,302 14,45038,321 21,449 7,292 19.528 170,280 24,386 2,471 5,038 17,434 11.476 178,401 695 211 13,166 180.86018,02439,450 Member—Total: 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 15,811 1,438 7,117 64,184 12,333 1,243 22,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—D 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 1968—Dec. 31 . 21,230 5,634 11,279 131,491 21,483 2,036 4,309 12,851 8,592 142,476 1,061 330 15,668 147,545 8,458 30,060 i i o!! 19,801 4,828 10,370 118,038 22,026 2,072 4,874 12,916 11,513 133,857 722 305 13,071 143,990 13.99931,317 21.449 5.676 11.931 133.435 23.441 2.399 4,114 13.274 10,483 145.992 609 186 9.951 140.308 17,39532,047 New York Citv: 1941—Dec.'31 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 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- i o.. 4,212 400 424 15,504 9,725 1,509 983 1,314 7,801 25,338 405 53 673 14,735 3,671 6,283 4,358 463 455 21,316 8,708 1.641 694 1,168 6.605 28,354 268 45 207 14,6924,405 6,301 City of Chicago: 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 942 36 200 3,153 1,292 20 1 ,552 237 66 3,160 719 377 1947- 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1968- 1 ,164 98 281 5,183 1,445 89 257 245 207 6,090 21 2 624 5,545 682 1,433 io.' 652 78 134 4,428 1,298 69 274 321 228 5,644 25 1 391 4,783 1,230 1,492 869 123 150 5.221 1,581 96 175 268 229 6,273 15 i 216 4,409 1,290 1,517 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 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- 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1968- 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 io.. 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 Dec. 31. 9.044 1,787 3.456 44.169 10,072 590 1,575 3.934 1.928 53,062 242 86 4.609 50.4399.881 11,464 Country: 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 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 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1968- 6,714 3,293 7,592 61,827 2,781 58 1,281 7,703 1,612 57,263 111 86 6,043 68,348 804 11,807 io!! 6,991 2,851 7,036 58,325 2,465 49 1,447 7,490 1 ,641 54,432 86 88 5,776 70,852 I ,787 12,376 7,179 3.302 7,870 62.729 3.080 72 1 .671 7.905 1.721 58.304 84 54 4.920 70.768 1,820 12.766 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 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 10 11,430 7,221 34,957 903 186 765 4,013 1,204 30,283 160 47 3,619 39,986 741 7,506 Dec. 31 . 1 ,644 8,383 38,644 1 ,112 222 940 4,284 1 ,416 33,420 126 25 3,269 41,135 965 7,931 1 7 Beginning with 1942, excludes reciprocal bank balances. banks in U.S. possessions are included through 1968 and excluded there­ 8 Through 1960 demand deposits other than interbank and U.S. after. Govt., less cash items in process of collection; beginning with 1961, For the period June 1941—June 1962 member banks include mutual demand deposits other than domestic commercial interbank and U.S. savings banks as follows: three before Jan. 1960, two through December Govt., less cash items in process of collection. 1960, and one through June 1962. Those banks are not included in all 9 For reclassification of certain deposits in 1961, see note 6, p. 589, insured or total banks. May 1964 Bulletin. Beginning June 30, 1969, a small noninsured member bank engaged 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports exclusively in trust business is treated as a noninsured bank and not as a (including figures for all bank-premises subsidiaries and other significant member bank. majority-owned domestic subsidiaries) and (2) reporting of figures for Comparability of figures for classes of banks is affected somewhat by total loans and for individual categories of securities on a gross basis—that changes in F.R. membership, deposit insurance status, and the reserve is, before deduction of valuation reserves. See also notes 1 and 6. classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. Note.—Data are for all commercial banks in the United States; member Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ SEPTEMBER 1970 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For pui rchasing and dealers or carryiniI securities Total involving— To nonbank loans finan. Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ o cial Agri­ Total mer­ U.S. iers 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 Aug. 6............... 232,413 5,379 5,203 97 30 167,395 77,609 2,129 462 3,297 103 2,699 5,767 5,468 13............... 231,418 5,502 5,128 303 21 166,605 77,303 2,133 540 3,066 103 2,691 5,479 5,467 20............... 229,681 5,441 5,188 157 35 165,967 77,084 2,117 466 3,016 103 2,690 5,387 5,487 27............... 230,722 5,659 5,544 69 3 165,465 76,658 2,112 397 2,991 107 2,673 5,355 5,456 1970 July 1............... 240,221 7,387 6,809 209 172 197 172,488 80,089 2,078 447 3,184 96 2,255 7,106 5,807 8............... 240,013 6,727 6,161 208 166 192 172,069 80,008 2,061 563 2,990 102 2,298 7,136 5,745 15............... 238,539 5,866 5,519 49 128 170 172,094 80,096 2,054 274 2,866 105 2,305 7,749 5,699 22............... 239,557 7,745 7,006 437 154 148 171,993 79,912 2,048 498 2,880 104 2,262 7,545 5,710 29............... 238,622 5,885 5,071 552 140 122 171,469 79,320 2,031 786 2,748 104 2,287 7,244 5,734 Aug. 1 5 2 * * . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 4 4 2 0 , , 1 4 9 9 5 8 7 7 , , 9 0 3 6 8 4 6 7 , , 1 3 0 4 5 2 6 2 6 9 1 8 1 1 9 3 8 9 1 1 0 59 0 1 1 7 7 1 2 , , 5 1 0 2 1 1 7 7 9 9 , , 3 3 4 8 8 8 2 2 , , 0 0 3 2 5 7 6 73 9 5 2 2 2, , 9 7 3 9 6 0 1 1 0 0 5 4 2 2, , 3 2 1 9 1 3 7 7 , , 1 3 6 8 1 7 5 5 , , 7 7 2 1 8 8 19*............. 241,110 6,560 5,791 537 168 64 171,695 79,115 2,018 1 ,036 2,853 104 2,337 7,141 5,758 26*............. 241,265 6,845 5,981 623 192 49 171,289 79,217 2,006 973 2,883 103 2,296 6,833 5,756 New York City 19693 Aug. 6............... 53,602 1,658 1,641 7 41,455 25,493 10 376 2,074 10 842 I ,817 1 ,352 13............... 53,287 1,951 1,939 12 41,023 25,354 11 434 1,862 10 836 1 ,738 1,338 20............... 52,728 2,081 2,004 14 40,592 25,250 11 378 1,793 10 836 1,655 1 ,341 27............... 53,293 2,088 2,088 40,463 25,105 11 319 • 1,811 15 825 1,673 1 ,359 1970 July 1............... 55,406 1,730 1,675 30 42,409 25,814 16 360 1,946 12 673 2,374 1,617 8............... 54,685 948 917 31 42,106 25,843 15 419 1,832 17 700 2,286 1,555 15............... 54,484 1,017 992 25 42,080 25,902 15 192 1,772 17 693 2,506 1,517 22............... 55,268 2,317 2,291 16 41,959 25,836 15 373 1,832 17 690 2,350 1,515 29............... 55,076 1,616 1,596 20 41,848 25,642 15 503 1,733 15 690 2,274 1 ,517 Aug. 5*............. 55,645 1 ,205 1,197 8 42,307 25,748 14 524 1,818 15 687 2,265 1,513 12*............. 54,669 781 756 25 41,848 25,756 14 425 1,739 16 689 2,194 1 ,501 19*............. 54,711 889 686 10 23 41,836 25,447 14 788 1,780 15 687 2,140 1,482 26*............. 54,716 996 986 10 41,645 25,560 14 692 1 ,825 15 682 2,005 1,497 Outside New York City 19693 Aug. 6............... 178,811 3,721 3,562 87 23 125,940 52,116 2,119 86 1,223 93 1,857 3,950 4,116 13............... 178,131 3,551 3,189 303 9 125,582 51,949 2,122 106 1,204 93 1,855 3,741 4,129 20............... 176,953 3,360 3,184 94 21 125,375 51,834 2,106 88 1,223 93 1,854 3,732 4,146 27............... 177,429 3,571 3,456 69 3 125,002 51,553 2,101 78 1,180 92 1,848 3,682 4,097 1970 July 1............... 184,815 5,657 5,134 194 162 167 130,079 54,275 2,062 87 1,238 84 1,582 4,732 4,190 8............... 185,328 5,779 5,244 208 166 161 129,963 54,165 2,046 144 1,158 85 1,598 4,850 4,190 15............... 184,055 4.849 4,527 49 128 145 130,014 54,194 2,039 82 1,094 88 1,612 4,973 4,182 22............... 184,289 5,428 4,715 437 144 132 130,034 54,076 2,033 125 1,048 87 1,572 5,195 4,195 29............... 183,546 4,269 3,475 552 140 102 129,621 53,678 2,016 283 1,015 89 1,597 4,970 4,217 Aug. 5*............. 186,550 6,733 6,145 298 198 92 129,814 53,600 2,021 211 1,118 89 1,606 5,122 4,205 12*............. 185,829 6,283 5,349 661 139 134 129,653 53,632 2,013 267 1,051 89 1,622 4,967 4,227 19*............. 186,399 5,671 4,935 527 168 41 129,859 53,668 2,004 248 1,703 89 1,650 5,001 4,276 26*............. 186,549 5.849 4,995 623 192 39 129,644 53,657 1,992 281 1,058 88 1,614 4,828 4,259 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ 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 33,263 468 1,596 19,867 1,034 13,633 23,147 2,067 4,173 12,025 4,882 ..............................Aug. 6 33,381 404 1,604 19,930 1,028 13,476 22,920 1,909 4,114 12,006 4,891 ..........................................13 33,423 389 1,564 19,935 1 ,028 13,278 22,253 1,358 4,139 12,784 3,972 ..........................................20 33,472 434 1 ,551 19,915 1 ,102 13,242 23,417 2,362 4,337 12,783 3,935 ..........................................27 1970 33,496 506 1,465 20,638 941 14,380 22,035 2,090 3,522 14,190 2,233 ..............................July 1 33,480 409 1,499 20,685 959 14,134 23,340 3.519 3,570 14,086 2,165 .......................................... 8 33,534 410 1,563 20,688 972 14,049 22,567 2,829 3,620 14,015 2,103 ..........................................15 33,589 394 1,446 20,683 951 13,971 22,016 2,312 3,663 13,953 2,088 ..........................................22 33,597 422 1,445 20,855 986 13,910 23,378 3,734 3,694 13,913 2,037 ..........................................29 33,616 438 1,455 20,890 966 14,200 23,706 3,724 4,074 13,876 2,032 ..............................Aug. 5* 33,679 378 1,476 20,904 971 13,891 23,468 3.520 4,052 13,847 2,049 ..........................................12* 33,724 428 1,426 20,939 937 13,879 24,334 3,262 3,562 14,936 2,574 ..........................................19* 33,689 400 1 ,417 20,985 916 13,815 24,556 3,486 3,627 14,834 2,609 ..........................................26* New York City 19693 3,566 186 795 I ,573 667 2,694 4,327 811 449 2,084 983 ..............................Aug. 6 3,591 156 817 1,576 672 2,628 4,200 677 466 2,079 978 ..........................................13 3,604 156 791 1,586 660 2,521 4,007 510 442 2,345 710 ..........................................20 3,593 178 777 1 ,595 709 2,493 4,633 1 ,130 463 2,337 703 ..........................................27 1970 3,343 279 803 1,715 574 2,883 4,128 532 370 2,931 295 ..............................July 1 3,336 206 835 1 ,737 589 2,736 4,728 1 ,150 413 2,888 277 .......................................... 8 3,367 228 890 1 ,732 590 2,659 4,509 969 450 2,818 272 ..........................................15 3,386 194 798 1 ,731 590 2,632 4,255 772 436 2,781 266 ..........................................22 3,390 202 814 1 ,818 618 2,617 4,881 1 ,369 476 2,770 266 ..........................................29 3,428 227 820 1.846 599 2,803 5,202 1 ,407 810 2,691 294 ..............................Aug. 5* 3 3 , , 4 44 6 7 0 2 1 2 8 7 9 7 8 8 3 5 4 1 1 , . 8 8 6 4 8 6 5 6 7 0 6 9 2 2 , , 5 5 6 8 7 9 5 5 , , 1 1 2 4 0 6 1 1 , , 3 02 2 1 0 5 84 0 1 8 2 3 , , 6 0 9 9 3 8 4 2 9 9 3 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 2* * 3,449 189 778 1 ,859 557 2,523 5,210 1 ,159 512 3,066 473 ..........................................26* Outside New York City 1969' 29,697 282 801 18,294 367 10,939 18,820 I ,256 3,724 9,941 3,899 . Aug. 6 29,790 248 787 18,354 356 10,848 18,720 1 ,232 3,648 9,927 3,913 .............13 29,819 233 773 18,349 368 10,757 18,246 848 3,697 10,439 3,262 .............20 29,879 256 774! 18,320 393 10,749 18,784 1 ,232 3,874 10,446 3,232 .............27 1970 30,153 227 662 18,923 367 11,497 17,907 1,558 3,152 11,259 1,938 .July 1 30,144 203 664 18,948 370 11,398 18,612 2,369 3,157 11,198 1,888 . 8 30,167 182 673 18,956 382 11,390 18,058 1,860 3,170 11,197 1,831 .15 30,203 200 648 18,952 361 11,339 17,761 1,540 3,227 11,172 1,822 .22 30,207 220 631 19,037 368 11,293 18,497 2,365 3,218 11,143 1,771 .29 30,188 211 635 19,044 367 11,397 18,504 2,317 3,264 11,185 1,738 • Aug. 5* 30,232 189 642 19,058 362 11,302 18,322 2,200 3,211 11,154 1,757 .12* 30,264 201 641 19,071 361 11,312 19,214 2,241 3,054 11,838 2,081 .19* 30,240 211 I 639 19,126 359 11,292 19,346 2,327 3,115 11,768 2,136 .26* For notes see p A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ SEPTEMBER 1970 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other Total political securities of F.R. and do­ ies not assets liabil­ subdivisions collec­ Banks mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants4 other partici­ other6 pation5 Large banks—Total 19693 Aug. 6................................... 36,492 4,013 28,812 1,118 2,549 30,595 16,945 2,793 4,605 471 12,700 300,522 13................................... 36,391 3,851 28,834 1,147 2,559 29,154 15,084 3,046 4,852 474 12,497 296,525 20................................... 36,020 3,729 28,717 1,110 2,464 29,901 16,445 2,987 4,437 494 12,305 296,250 27................................... 36,181 3,712 28,829 1,121 2,519 29,519 16,776 3,157 4,247 496 12,430 297,347 1970 July 1................................... 38,311 4,904 29,170 1,012 3,225 34,012 16,587 3,142 5,098 705 14,440 314,205 8................................... 37,877 4,760 28,957 1,000 3,160 30,561 16,746 3,145 4,593 702 14,016 309,776 15................................... 38,012 4,857 29,016 982 3,157 33,834 18,575 3,267 5,038 707 14,030 313,990 22................................... 37,803 4,768 28,913 981 3,141 30,278 16,797 3,302 4,550 707 13,833 309,024 29................................... 37,890 4,770 28,946 1,018 3,156 26,853 16,544 3,384 4,545 709 14.010 304,667 Aug. 5*................................. 38,430 4,963 29,073 1,045 3,349 28,507 17,628 2,976 4,834 711 14,154 311,005 12*................................. 38,465 5,076 29,095 1,014 3,280 27,611 16,712 3,258 4,547 706 14,042 307,374 19*................................. 38,521 5,084 29,146 1,030 3,261 29,994 17,597 3,254 4,713 706 13,886 311,260 26*................................. 38,575 4,983 29,132 1,039 3,421 28,889 17,738 3,379 4,856 705 14.010 310,842 New York City 19693 Aug. 6.................................. 6,162 985 4,541 106 530 14,978 4,504 368 405 258 4,624 78,739 13.................................... 6,113 931 4,544 108 530 13,413 3,806 381 345 258 4,496 75,986 20................................... 6,048 900 4,534 107 507 14,500 4,234 365 308 258 4,408 76,801 27................................... 6,109 909 4,561 105 534 14,908 4,526 367 280 258 4,470 78,102 1970 July I................................... 7,139 1,468 4,725 862 15,893 4,641 400 438 318 5,269 82,365 8................................... 6,903 1,370 4,612 838 14,767 4,215 405 444 318 5,034 79,868 15................................... 6,878 1,348 4,630 818 16,341 5,019 402 539 323 5,094 82,202 22................................... 6,737 1,262 4,576 827 14,775 3,921 409 450 323 4,856 80,002 29................................... 6,731 1,240 4,582 821 12,540 4,414 410 446 323 4,862 78,071 Aug. 5*................................ 6,931 1,332 4,589 922 12,320 4,548 400 561 324 5,017 78,815 12*................................. 6,894 1,390 4,527 890 11,963 4,358 411 418 324 4,891 77,034 19*................................. 6,866 1,397 4,479 903 14,094 4,336 410 544 324 5,011 79,430 26*................................. 6,865 1,261 4,611 899 14,716 4,774 418 507 324 5,028 80,483 Outside New York City 19693 Aug. 6................................... 30,330 3,028 24,271 1,012 2,019 15,617 12,441 2,425 4,200 213 8,076 221,783 13................................... 30,278 2,920 24,290 1 ,039 2,029 15,741 11,278 2,665 4,507 216 8,001 220,539 20................................... 29,972 2,829 24,183 1,003 1,957 15,401 12,211 2,622 4,129 236 7,897 219,449 27................................... 30,072 2,803 24,268 1 ,016 1,985 14,611 12,250 2,790 3,967 238 7,960 219,245 1970 July 1................................... 31,172 3,436 24,445 928 2,363 18,119 11,946 2,742 4,660 387 9,171 231,840 8................................... 30,974 3,390 24,345 917 2,322 15,794 12,531 2,740 4,149 384 8.982 229,908 15................................... 31,134 3,509 24,386 900 2,339 17,493 13,556 2,865 4,499 384 8,936 231,788 22................................... 31,066 3,506 24,337 909 2,314 15,503 12,876 2,893 4,100 384 8,977 229,022 29................................... 31,159 3,530 24,364 930 2,335 14,313 12,130 2,974 4,099 386 9,148 226,596 Aug. 5*................................ 31,499 3,631 24,484 957 2,427 16,187 13,080 2,576 4,273 387 9,137 232,190 12*................................. 31,571 3.686 24,568 927 2,390 15,648 12,354 2,847 4,129 382 9,151 230,340 19*................................. 31,655 3.687 24,667 943 2,358 15,900 13,261 2,844 4,169 382 8,875 231,830 26*................................ 31,710 3,722 24,521 945 2,522 14,173 12,964 2,961 4,349 381 8.982 230,359 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 Mutua 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 128,943 88,786 6,120 3,380 17,599 729 671 1,981 9,677 100,196 46,916 39,374 8,717 432 4,346 ...............Aug. 6 127,201 90,363 5,832 2,041 16,951 649 761 2,056. 8,548 99,681 46,816 39,132 8,528 429 4,372 .........................13 126,272 88,828 5,441 2,728 17,392 637 737 2,002 8,507 99,265 46,776 38,917 8,365 436 4,373 .........................20 126,890 88,580 5,895 3,111 16,589 640 755 1,847 9,473 98,998 46,690 38,693 8,298 433 4,491 .........................27 1970 139,086 95,254 7,653 5,112 18,802 759 816 2,307 8,383 101,580 46,425 38,498 9,166 483 6,700 ...............July 1 132,735 91,368 6,177 5,429 18,674 799 778 2,158 7,352 102,798 46,443 39,300 9,478 602 6,665 .......................... 8 135,392 94,886 5,901 3,982 19,419 649 829 2,230 7,496 103,909 46,396 40,160 9,873 703 6,453 ..........................15 130,037 91,603 5,391 4,250 18,285 572 742 2,267 6,927 105,241 46,406 41,105 10,105 791 6,505 .........................22 128,669 91,029 5,695 4,887 17,072 564 889 2,293 6,240 106,495 46,344 41,852 10,461 880 6,611 .........................29 129,811 90,750 6,301 3,789 18,591 632 839 2,104 6,805 107,580 46,379 42,359 10,805 931 6,715 ...............Aug. 5* 127,122 91,214 5,974 2,791 17,776 581 799 2,228 5,759 108,241 46,373 42,584 10,998 1,051 6,843 ..........................12* 131,738 91,293 5,569 6,185 18,436 549 778 2,202 6,726 108,724 46,375 43,258 11,107 1 ,077 6,487 ..........................19* 130,596 90,763 5,769 5,555 17,728 510 710 .2,142 7,419 109,727 46,334 43,971 11,289 1,198 6,520 ..........................26* New York City 1969 3 38,844 21,090 500 718 6,886 434 518 1 ,394 7,304 13,337 4,457 5,344 450 254 2,666 . Aug. 6 37,325 21,130 477 289 6,629 371 591 1 ,469 6,369 13,217 4,451 5,225 435 253 2,682 ...........13 37,895 21,037 426 559 7,275 374 572 1,408 6,244 13,088 4,447 5,116 424 252 2,680 ...........20 38,756 21,012 534 662 7,027 393 592 1 ,250 7,286 13,056 4,431 5,027 415 253 2,762 ...........27 1970 42,307 24,010 949 1,075 7,821 464 675 1,650 5,663 14,239 4,391 4,962 402 281 4,097 , . . .July 39,453 22,312 556 1,288 7,721 503 631 1 ,527 4,915 14,516 4,378 5,177 459 353 4,033 40,856 23,010 600 964 8,492 366 690 1,608 5,126 14,788 4,360 5,436 512 421 3,942 . .15 39,082 22,543 368 995 7,836 303 599 1,632 4,806 15,345 4,356 5,854 549 458 4,005 . .22 38,250 22,422 423 1 ,338 7,245 297 748 1 ,701 4,076 15,773 4,354 6,176 604 492 4,018 , .29 37,290 21,402 585 882 7,432 331 682 1,508 4,468 15,916 4,354 6,197 648 517 4,070 . .Aug. 5 * 35,713 21,402 621 563 6,956 309 656 1 ,592 3,614 16,058 4,346 6,177 701 581 4,129 , ...........12* 38,817 22,026 538 1,430 7,822 287 636 1,576 4,502 16,040 4,341 6,423 716 579 3,850 ...........19 * 39,435 22,241 500 1 ,166 7,775 275 574 1 ,529 5,375 16,323 4,338 6,641 738 653 3,822 ...........26 p Outside New York City 1969 3 90,099 67,696 5,620 2,662 10,713 295 153 587 2,373 86,859 42,459 34,030 8,267 178 1,680 . . Aug. 6 89,876 69,233 5,355 1 ,752 10,322 278 170 587 2,179 86,464 42,365 33,907 8,093 176 1,690 . ...........13 88,377 67,791 5,015 2,169 10,117 263 165 594 2,263 86,177 42,329 33,801 7,941 184 1 ,693 ...........20 88,134 67,568 5,361 2,449 9,562 247 163 597 2,187 85,942 42,259 33,666 7,883 180 1 ,729 ...........27 1970 96,779 71,244 6,704 4,037 10,981 295 141 657 2,720 87,341 42,034 33,536 8,764 202 2,603 . . .July 93,282 69,056 5,621 4,141 10,953 296 147 631 2,437 88,282 42,065 34,123 9,019 249 2,632 . 94,536 71,876 5,301 3,018 10,927 283 139 622 2,370 89,121 42,036 34,724 9,361 282 2,511 , ...........15 90,955 69,060 5,023 3,255 10,449 269 143 635 2,121 89,896 42,050 35,251 9,556 333 2,500 ..........22 90,419 68,607 5,272 3,549 9,827 267 141 592 2,164 90,722 41,990 35,676 9,857 388 2,593 . ...........29 92,521 69,348 5,716 2,907 11,159 301 157 596 2,337 91,664 42,025 36,162 10,157 414 2,645 , .Aug. 5* 91,409 69,812 5,353 2,228 10,820 272 143 636 2,145 92,183 42,027 36,407 10,297 470 2,714 . ...........12* 92,921 69,267 5,031 4,755 10,614 262 142 626 2,224 92,684 42,034 36,835 10,391 498 2,637 . ..........19* 91,161 68,522 5,269 4,389 9,953 235 136 613 2,044 93,404 41,996 37,330 10,551 545 2,698 . ...........26* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ SEPTEMBER 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 ities counts (gross) ments deposits to etc.7 ad­ (gross) ad Issued Issued their justed-> ad­ justed1 o to to foreign justed 9 IPC’s others bran­ ches Large banks—Total 19693 Aug. 6.............................. 15,364 814 2,733 25,873 3,567 125 22,907 167,103 226,742 77,369 13,263 7,697 5,566 14,177 2 1 0 3. . . . . . . .. .. . . . . . . .. .. . . . . .. .. . . . . .. . . .. . . . . .. . . .. . . .. . . .. . . . 1 14 4 , , 0 1 5 9 2 0 ' 8 1 5 51 5 2 2, ,9 9 2 4 3 7 2 26 5 , , 3 7 2 7 3 4 3 3 , , 5 5 6 5 2 9 1 1 1 2 9 0 2 2 2 2 , , 8 9 5 2 7 4 1 16 6 5 6 , , 8 5 3 7 1 5 2 2 2 2 5 4 , , 8 1 8 0 6 4 7 76 9 , , 2 0 5 5 1 5 1 1 3 2 , , 1 8 3 2 1 8 7 7, , 3 5 4 8 7 4 5 5, , 4 5 8 4 1 7 1 1 4 4, , 7 3 7 0 6 4 27.............................. 15,019 1 ,100 2,602 26,185 3,570 112 22,871 165,146 224,744 77,671 12,592 7,184 5,408 14,657 1970 July 1.............................. 17,666 671 1,966 25,203 4,016 23,940 172,560 232,906 81,160 14,133 7,041 7,092 11,923 8.............................. 17,480 1 ,402 1,916 25,343 4.019 24,007 172,226 233,443 78,071 15,214 7,737 7,477 12,041 15.............................. 17,373 1 ,837 1,896 25,573 4,015 23,920 172,031 232,610 78,157 15,995 8,448 7,547 12,132 22............................. 17,842 1 ,044 1 ,902 24,963 4.014 23,906 172,338 232,157 77,224 16,926 9,147 7,779 11,783 29.............................. 15,098 652 1 ,811 23,903 4.019 23,945 171,861 233,129 79,857 17,901 9,761 8,140 10,896 Aug. 5*........................... 19,254 513 1,847 23,811 4.014 24,100 172,279 234,415 78,924 18,478 9,995 8,483 10,781 12*........................... 17,955 354 1,809 23,727 4.013 24,079 172,082 234,015 78,944 18,942 10,183 8,759 10,773 19*........................... 16,339 725 1 ,668 23,948 4.014 24,029 172,036 234,891 77,123 19,414 10,759 8,655 10,764 26*........................... 15,417 941 1 ,659 24,349 4.015 24,064 171,753 234,884 78,424 20,174 11,244 8,930 11,146 New York City 19693 Aug. 6.............................. 4,840 663 13,938 1,049 6,053 41,286 51,775 16,262 2,343 1,072 1 ,271 9,828 13.............................. 3,803 644 13,901 1 ,049 6,044 40,879 51,192 16,994 2,345 1,045 1,300 9,876 20.............................. 3,786 150 628 14,165 1 ,049 6,037 40,513 50,568 15,561 2,259 974 1 ,285 10,148 27.............................. 4,065 291 536 14,324 1 ,049 6,022 40,285 51,027 16,159 2,1 915 1 ,273 10,291 1970 July 1.............................. 4,972 175 199 13,168 ,196 6,107 42,185 53,452 17,518 3,139 1,231 1 ,908 7,946 8............................. 4,133 433 174 13,866 ,198 6,093 41,931 53,562 15,677 3,462 1 ,426 2,036 8,322 15............................. 4,421 650 177 14,023 ,199 6,087 41,877 53,264 15,059 3,795 1 ,678 2,117 8,559 22............................. 4,625 63 204 13,401 ,198 6,083 41,791 52,783 15,476 4,158 2,000 2,158 8,184 29............................. 4,151 13 205 12,421 ,202 6,055 41,666 53,278 17,127 4,51 2,274 2,244 7,433 Aug. 5 *........................... 5,569 230 12,471 1,200 6,138 42,088 54,221 16,656 4,595 2,255 2,340 7,294 12*........................... 5,094 237 12,599 1 ,200 6,133 41,684 53,724 16,231 4,661 2,242 2,419 7,514 19*........................... 4,406 168 238 12,426 1 ,203 6,132 41,642 53,628 15,471 4,777 2,491 2,286 7,438 26*........................... 4,126 416 238 12,624 1 ,205 6,116 41,466 53,541 15,778 5,110 2,711 2,399 7,640 Outside New York City 1969 3 Aug. 6............................. 10,524 802 2,070 11,935 2,518 122 16,854 125,817 174,967 61,107 10,920 6,625 4,295 4,349 13.............................. 10,387 151 2,279 11,873 2,513 116 16,880 125,696 174,694 62,061 10,786 6,539 4,247 4,428 20......................... ; 10,266 705 2,319 12,158 2,510 117 16,820 125,318 173,536 60,690 10,569 6,373 4,196 4,628 27.............................. 10,954 809 2,066 11,861 2,521 109 16,849 124,861 173,717 61 ,512 10,404 6,269 4,135 4,366 1970 July 1.............................. 12,694 496 1,767 12,035 2,820 17.833 130,375 179,454 63,642 10,994 5,810 5,184 3,977 8.............................. 13,347 969 1,742 11,477 2,821 17,914 130,295 179,881 62,394 11,752 6,311 5,441 3,719 15.............................. 12,952 1,187 1,719 11,550 2,816 17.833 130,154 179,346 63,098 12,200 6,770 5,430 3,573 22.............................. 13,217 981 1,698 11,562 2,816 17,823 130,547 179,374 61,748 12,768 7,147 5,621 3,599 29.............................. 10,947 639 1,606 11 ,482 2,817 17,890 130,195 179,851 62,730 13,383 7,487 5,896 3,463 Aug. 5*........................... 13,685 513 1 ,617 11,340 2,814 17,962 130,191 180,194 62,268 13,883 7,740 6,143 3,487 12*........................... 12,861 354 1,572 11,128 2,813 17,946 130,398 180,291 62,713 14,281 7,941 6,340 3,259 19*........................... 11,933 557 1,430 11 ,522 2,811 17,897 130,394 181,263 61,652 14,637 8,268 6,369 3,326 26*........................... 11,291 525 1 ,421 11,725 2,810 17,948 130,287 181,343 62,646 15,064 8,533 6,531 3,506 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 subsidiaries. 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. * 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

SEPTEMBER 1970 □ 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 1970 1969 Aug. Aug. Aug. Aug. July 1st 2nd 26 19 12 5 29 Aug. July June II I IV half half Durable goods manufacturing: Primary metals.................................... 2,124 2,138 2,151 2,159 2,209 -85 43 128 rl 55 r —74 76 81 129 Machinery............................................ 6,099 6,106 6,175 6,118 6,097 2 -100 r174 rl 22 r149 329 r271 609 Transportation equipment............... 2,735 2,730 2,769 2,772 2,737 -2 -22 "100 r31 '96 400 127 539 Other fabricated metal products... 2,166 2,192 2,204 2,190 2,224 -58 -28 96 rl 24 rl 25 -115 249 -174 Other durable goods.......................... 2,843 2,822 2,864 2,870 2,859 -16 107 120 r237 r........... -13 237 79 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,528 2,559 2,532 2,553 2,545 -17 -209 60 r —84 r — 415 666 -499 709 Textiles, apparel, and leather........... 2,865 2,935 2,949 2,919 2,852 13 139 92 r207 r169 -471 376 -373 Petroleum refining.............................. 1 ,508 1 ,492 1 ,499 1 ,501 1 ,512 -4 -127 93 r45 r —124 -107 -79 -350 Chemicals and rubber....................... 2,610 2,620 2,648 2,666 2,664 -54 -53 9 r —127 '-1 197 -128 103 Other nondurable goods................... 2,187 2,193 2,177 2,180 2,187 76 114 r35 r —8 36 r21 199 Mining, including crude petroleum and natural gas............................. 4,156 4,164 4,169 4,169 4,221 -65 -39 67 ' — 132 ' — 445 -15 -577 -69 Trade: Commodity dealers................... 871 886 870 840 851 20 -47 -65 ' — 134 ' — 158 366 -292 234 Other wholesale......................... 3,602 3,601 3,607 3,664 3,627 -25 4 r73 rl 46 r_92 48 r54 11 Retail........................................... 4,128 4,162 4,139 4,212 4,181 -53 -172 *•212 r276 r — 103 129 '173 -126 Transportation........................................ 5,732 5,761 5,777 5,752 5,776 -44 136 85 60 —156 246 -96 257 Communication...................................... 1 ,337 1 ,338 1 ,336 1 ,341 I ,319 18 30 -4 r —30 r —220 247 -250 341 Other public utilities.............................. 2,559 2,516 2,535 2,520 2,533 26 -201 202 r — 38 r — 793 252 -831 747 Construction............................................ 3,301 3,272 3,270 3,246 3,240 61 32 '73 rl 49 r —83 -144 r66 -70 Services..................................................... 6,909 6,960 6,999 7,000 7,010 -101 137 rl 49 ' —19 r — 128 408 ' — 147 263 All other domestic loans....................... 4,932 4,904 4,830 5,001 4,973 -41 143 22 r88 r —203 365 ' — 115 507 Bankers’ acceptances.............................. 733 618 598 545 531 202 26 -40 -Al -156 294 -203 183 Foreign commercial and industrial loans.................................................. 2,160 2,130 2,156 2,138 2,149 11 -5 -8 '22 r —106 -24 -84 -192 Total classified loans............................. 68,085 68,099 68,254 68,356 68,297 -212 -130 '1,752 rl ,086 r-2,726 3,370 '-1,640 3,456 Total commercial and industrial loans. 79,217 79,115 79,388 79,348 79,320 -103 -231 '1 ,716 rl ,088 r-3,028 3,438 '-1,940 3,077 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 1970 Industry Aug. June May Apr. Feb. Jan. Dec. Nov. 1st 26 24 27 29 25 28 31 26 II I IV III half Durable goods manufacturing: Primary metals..................................... 1 ,474 1 ,520 1,447 1,463 1,420 1,428 1,476 1,402 68 -24 57 67 44 Machinery............................................. 2,920 2,784 2,763 2,761 2,748 2,686 2,749 2,566 -16 51 193 82 35 Transportation equipment................. 1,608 1,564 1,549 1,560 1,544 1,554 1 ,501 1,389 -11 74 256 148 63 Other fabricated metal products . . . 789 762 755 780 754 757 761 796 3 -2 -8 -29 1 Other durable goods........................... 1 ,135 1 ,132 1 ,162 1,183 1,141 1,145 1 ,169 1,097 -30 -7 59 42 -37 Nondurable goods manufacturing: Food, liquor, and tobacco................. 968 1 ,007 939 951 952 942 953 908 47 7 73 24 54 Textiles, apparel, and leather.. 733 762 756 709 721 708 713 707 36 13 24 46 49 Petroleum refining............................... 1,183 1,266 1,217 1,254 1,234 1,310 1,356 1,310 11 -101 -121 -190 -90 Chemicals and rubber......................... 1 ,664 1 ,709 1,694 1,831 1 ,896 1 ,832 1,829 1,674 -96 -24 112 21 -120 Other nondurable goods................... 1 ,106 1 ,071 1 ,071 1 ,099 1 ,120 1,133 1 ,151 1 ,123 -75 -5 85 15 -80 Mining, including crude pe­ troleum and natural gas................. 3,381 3,582 3,520 3,590 3,757 3,916 4,090 4,044 -127 -381 -29 -84 -508 Trade: Commodity dealers................... 82 88 87 77 81 90 79 81 10 -1 -1 -34 9 Other wholesale......................... 704 '692 717 684 693 686 706 668 r_4 -10 40 — 4 '-14 Retail............................................ 1,334 1 ,308 1 ,285 1 ,242 1,236 1 ,232 1 ,229 1 ,215 102 -23 71 4 79 Transportation.......................................... 4,347 4,276 4,262 4,199 4,291 4,343 4,414 4,146 -55 -83 307 26 - 138 Communication........................................ 487 408 416 445 472 480 498 462 -68 -22 52 6 -90 Other public utilities............................... 1 ,042 1 ,033 984 1 ,020 1,244 1 ,318 1 ,337 1 ,219 -128 -176 42 146 -304 Construction............................................. 985 911 888 899 899 893 904 903 8 -1 13 -2 7 Services....................................................... 3,060 3,017 3,031 2,962 2,971 2,936 2,991 2,945 22 4 131 -10 26 All other domestic loans........................ 1 ,242 '1 ,227 1,186 1,183 1,195 1,214 1,241 1,204 '21 -35 110 108 '-14 Foreign commercial and in­ dustrial loans.................................... 1,599 1,620 1,664 1,614 1,627 1,645 1,642 1,690 -27 5 -75 -135 -22 Total loans................................................ 31,843 '31,739 31,393 31,506 31,996 32,248 32,789 31,549 ' — 309 -741 1,391 247 '-1,050 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 □ SEPTEMBER 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 May 6.......... 7,109 5,579 1 ,530 1 ,798 740 1,058 13.......... 7,411 5,859 1 ,552 1 ,794 734 1,060 20........... 7,736 6,128 1 ,608 1 ,812 727 1,085 27 7,837 6,221 1 ,616 1 ,816 723 1,093 June 3........... 7,830 6,188 1 ,642 1 ,813 703 1,110 10........... 7,829 6,180 1 ,649 1,813 716 1,097 17........... 7,655 6,084 1 ,571 1 ,877 684 1,193 24........... 7,858 6,313 1 ,545 1 ,830 674 1 ,156 July 1........... 7,793 6,146 1,647 1,806 634 1,172 8........... 7,741 6,054 1,687 1,825 634 1,191 15.......... 7,783 6,037 1,746 1,874 637 1,237 22 7,976 6,063 1,913 1,879 648 1,231 29.......... 8,018 6,151 1,867 1,892 r647 C1,245 Aug. 5.......... 7,902 6,006 1,896 1,877 640 1,237 12.......... 7,927 5,998 1,929 1,881 656 1,225 19 7,907 6,089 1,818 1,836 629 1,207 26........... 7,788 5,789 1,999 1,835 627 1,208 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) May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 Percentage distribution of dollar amount Less than 8.00................................ 1.3 1.8 9.7 11.3 3.3 4.6 2.1 2.8 1; 4 1.7 .8 .8 8.00................................................... 44.2 .8 7.6 6.3 8.5 2.7 19.2 1.7 36.8 .4 58.7 .3 8.01-8.49.......................................... 19 9 2 7.2 1.7 8.3 .8 18.1 .4 22 2 21 8 1 8.50................................................... 8! 2 47.2 5.6 3.6 10.6 8.4 12.2 21.8 10.9 37.4 6^2 63! 8 8.51-8.99.......................................... 7.0 21.1 8.6 8.4 14.7 12.9 13.1 22.6 9.1 26.2 3.6 20.9 9.00................................................... 5.8 7.9 11.5 10.8 12.5 14.2 10.0 13.1 6.0 10.9 3.5 4.6 9.01-9.49.......................................... 3.5 7.0 12.6 12.0 12.4 15.9 7.4 12.9 3.7 6.5 .9 3.9 9.50................................................... 3.5 5.4 11.1 14.1 9.2 13.0 6.8 8.5 3.1 6.2 1.7 3.0 9.51-9.99.......................................... 1.8 3.2 10.0 13.9 6.9 9.9 3.2 6.2 1.8 4.2 .5 .9 Over 10.0........................................ 4.8 5.4 16.2 17.9 13.6 17.5 7.9 10.2 5.1 6.4 2.3 1.8 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)....................... 5,278.2 4,502.3 48.9 44.1 453.7 399.0 908.8 810.7 699.9 598.9 3,166.9 2,649.6 Number (thousands)................. 34.1 30.2 12.4 11.2 14.5 12.7 4.7 4.2 1.1 1.0 1.4 1.1 Center Weighted average rates (per cent per annum) 35 centers........................................ 8.49 8.86 9.05 9.17 9.04 9.26 8.73 9.04 8.43 8.87 8.25 8.67 New York City.......................... 8.24 8.65 9.05 9.31 8.91 9.12 8.53 8.89 8.31 8.72 8.13 8.57 7 Other Northeast..................... 8.86 9.23 9.23 9.28 9.34 9.60 9.01 9.36 8.72 9.18 8.45 8.91 8 North Central......................... 8.44 8.86 8.80 8.96 8.93 9.24 8.78 9.11 8.44 8.88 8.24 8.71 7 Southeast................................. 8.44 8.67 8.70 8.82 8.77 8.80 8.49 8.65 8.31 8.54 8.15 8.63 8 Southwest................................ 8.61 8.87 9.10 9.25 8.90 9.11 8.61 8.94 8.32 8.86 8.58 8.67 4 West Coast.............................. 8.42 8.84 9.49 9.61 9.13 9.32 8.72 8.96 8.50 8.98 8.13 8.66 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

SEPTEMBER 1970 □ 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 192 9 5 %-6 1947—Dec. i. iy4 1956—Apr. 13 3% 1966—Mar. 10 5 Vi Aug. 21 4 June 29........... 53/4 193 0 3 Vi-6 1948—Aug. 1 2 Aug. 16........... 6 1 1 1 9 9 9 3 3 3 1 2 3 2 3 1 V V V 4 4 i- - - 5 4 4 1950—Sept. 22 21/4 1 1 9 9 5 5 8 7 — — J A a u n g . . 22 6 , 4 4 Vi 1967—J N M a o n a v . r . . 2 2 20 7 6 . . - . . 2 . . . .. . 7 . . . . . . . . . . . . . . . 5 5 6 V V 2 i -5V4 193 1 4 9 — 47 (Nov.)____ IVi 1951—J O D a c e n t c . . . 1 1 8 7 9 2 2 3 % Vi S A e p p r t . . 2 1 1 1 4 3 Vi 1968— S N A e o p p v r t . . . 2 1 1 5 3 9 6 6 6 1 Y / 4 2 -6 V4 1953—Apr. 27 314 1959— S M e a p y t. 18 1 5 4 Vi D D e e c c . . 18 2........... 6 e 1 y /2 4 1954—Mar. 17 3 1969—Jan. 7........... 7 I960—Aug. 23 41/2 Mar. 17 7Vi 1955—Aug. 4 31/4 June 9.......... 8 Vi Oct. 14 3 Vi 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 m 3- o t n o t h 6 s - 2 90 days1 n R ew at e i s o su n e M y a ie r l k d et n R ew at e i s o su n e M y a ie r l k d et k B e il t l s y ( ie m ld a ) r 5 ­ Other6 issues7 1962.............................. 3.26 3.07 3.01 2.68 2.778 2.77 2.908 2.90 3.01 3.02 3.57 1963............................7 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—Aug................... 8.33 7.71 8.04 9.19 7.007 6.97 7.194 7.19 1 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 i 7.24 | 7.565 7.62 7.38 7.94 7.57 Dec................... 8.84 7.93 8.58 8.97 7.720 I 7.81 | 7.788 7.89 7.64 8.34 7.98 1970—Jan.................... 8.78 8.14 I 8.64 8.98 i 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 1 6.710 6.63 6.598 6.59 6.52 6.88 7.20 Apr................... 8.06 7.26 7.54 1 8.10 I 6.480 6.50 6.568 6.61 6.54 6.96 7.49 May.................. 8.23 7.43 8.02 7.94 7.035 6.83 7.262 7.02 7.12 7.69 7.97 June.................. 8.21 7.55 7.78 7.60 6.742 6.67 6.907 6.86 7.07 7.50 7.86 July................... 8.29 7.64 7.61 7.21 6.468 6.45 6.586 6.51 6.63 7.00 7.58 Aug................... 7.90 7.48 7.20 6.61 6.412 6.41 6.526 6.56 6.55 6.92 7.56 Week ending— 1970—May 2........... 8.13 7.29 8.00 8.43 6.876 6.83 7.253 7.17 7.19 7.56 7.87 9........... 8.35 7.36 8.13 8.46 7.184 6.80 i 7.493 6.93 7.06 7.65 7.96 16 8.30 7.38 8.08 7.96 6.994 6.78 7.202 7.00 7.13 7.63 7.98 23 8.18 7.45 7.93 7.84 6.828 6.72 ;1 6.996 6.95 7.08 7.70 7.97 30 8.13 7.56 7.98 ! 7.64 ! 7.133 7.00 ! 7.355 7.15 7.19 7.77 7.98 j June 6........... 8.13 7.56 7.78 7.84 6.824 6.82 6.858 6.88 7.01 7.52 7.76 13........... 8.15 7.56 7.75 ! 7.98 6.785 6.76 6.895 6.92 7.10 7.53 7.86 20........... 8.25 7.56 7.85 j 7.80 6.733 6.71 6.947 6.96 7.17 7.55 7.95 27........... 8.25 7.51 7.78 j 7.21 6.626 6.50 6.929 6.80 7.06 7.44 7.88 July 4........... 8.38 7.54 7.75 7.23 6.421 6.44 6.603 6.50 6.85 7.29 7.73 11........... 8.35 7.54 7.75 7.34 6.642 6.61 6.656 6.66 6.77 7. 14 7.60 18........... 8.25 7.56 7.63 7.59 6.547 6.45 6.644 6.53 6.62 6.94 7.55 25........... 8.35 7.75 7.58 7. 16 6.385 6.34 6.442 6.41 6.55 6.90 7.56 Aug. 1........... 8.15 7.78 7.43 6.89 6.345 6.37 6.429 6.47 6.52 6.93 7.58 8........... 8.00 7.60 7.33 6.93 6.413 6.46 6.496 6.59 6.61 6.97 7.61 15.......... 8.00 7.50 7.25 6.82 6.512 6.52 6.682 6.66 6.65 7.09 7.65 22, , , 8.00 7.50 7.20 6.64 6.527 6.42 6.587 6.52 6.49 6.95 7.59 29 7.70 7.35 7.05 6.34 6.198 6.25 6.338 6.46 6.46 6.69 7.42 1 i 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. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 INTEREST RATES □ SEPTEMBER 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 1 term) Total 1 Aaa Baa Aaa Baa Indus­ Rail­ Public Pre­ Com­ Com­ trial road utility ferred mon mon 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—Aug........................................ 6.02 5.98 5.74 6 7.8 7.37 6.97 7.86 7.29 7.57 7.40 6.44 3.37 Sept....................................... 6.32 6i.2l 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 6.03 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 5.78 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 May...................................... 6.94 7.00 6.70 7.33 8.46 8.11 8.98 8.19 8.59 8.72 7.26 4.20 J une...................................... 6.99 7.12 6.81 7.41 8.77 8.48 9.25 8.55 8.76 9.06 7.57 4.17 July........................................ 6. 57 6.68 6.40 7.02 8.85 8.44 9.40 8.61 9.11 9.01 7.62 4.20 Aug........................................ 6.75 6.27 5.96 6.65 8.,73 8.13 9.44 8.44 9.19 8.83 7.41 4.07 Week ending— 1970—June 6............................... 7.00 7.04 6.75 7.35 8 62 8.30 9.13 8.41 8.63 8.90 7.42 4.03 13............................... 7.09 7.15 6.85 7.45 8 70 8.42 9.18 8.52 8.68 8.97 7.52 4.19 20............................... 7.05 7.25 6.95 7.55 8 80 8.55 9.26 8.56 8.74 9.14 7.66 4.16 27............................... 6.89 7.04 6.70 7.30 8 89 • 8.60 9.36 8.66 88.8 9.20 7.69 4.28 July 4............................... 6.73 6.99 6.65 7.25 892 8.60 9.41 8.69 8.76 9.20 7.84 4. 32 11............................... 6.56 6.77 6.50 7.10 8 93 8.55 9.44 8.67 9.11 9.13 7.66 4.32 18................................ 6.61 6.77 6.50 7.10 8 88 8.49 9.39 8.62 9.12 9.05 7.59 4.20 25............................... 6.54 6.41 6.15 6.80 8 82 8.40 9.38 8.58 9.12 8.94 7.49 4.10 Aug. 1................................ 6.54 6.47 6.20 6.85 8 76 8.26 9.37 8.52 9.12 8. 85 7.50 4.04 8............................... 6.61 6.36 6.10 6.75 8 73 8.17 9.41 8.47 9.15 8.81 7.44 4.09 15............................... 6.76 6.40 6.10 6.80 8 71 8.10 9.42 8.40 9.19 8.81 7.41 4.19 22............................... 6.90 6.31 5.95 6.45 8 74 8.12 9.44 8.42 9.18 8 84 7.38 4.10 29............................... 6.73 6.01 5.70 6.40 8 72 8.13 9.47 8.44 9.22 8.85 7.39 3.88 1 i Number of issues2......................... 8 20 5 5 108 18 30 38 30 40 14 500 500 1 1 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

SEPTEMBER 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 Ex­ change ( 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—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 May............... 57.78 67.8 61.2 76.06 83.16 31.10 51.15 41.65 43.33 29.85 35.48 54.58 20.92 12,299 3,908 June............... 57.37 67.5 59.5 75.59 82.96 28.94 49.22 41.28 43.40 28.51 33.74 54.21 20.81 10,294 3,189 July................ 60.59 70.6 59.0 75.72 83.00 26.59 50.91 41.15 43.04 26.46 34.90 54.00 20.11 10,358 2,202 Aug................ 59.20 73.8 60.0 77.92 85.40 26.74 52.62 42.28 44.20 27.66 35.74 56.05 20.39 10,420 2,474 Week ending— 1970—Auc. 1........ <60.59 71.7 58.6 77.92 85.48 27.20 51.91 42.36 44.33 27.28 35.72 56.12 20.44 10,239 2.264 8 60.30 72.9 60.4 77.14 84.60 26.69 51.76 41.93 43.84 27.09 35.44 55.79 20.39 8,114 2,083 15 59.10 73.3 59.8 75.48 82.62 26.54 51.54 40.96 42.72 26.85 35.02 54.34 20.12 7,775 1,806 22 58.05 74.1 59.8 77.08 84.43 26.25 52.45 41.72 43.58 27.29 35.51 54.95 20.14 9,991 2,148 29........ 59.35 74.9 60.1 81.25 89.16 27.29 54.29 44.09 46.20 29.06 36.77 58.53 20.78 15,734 4,353 1 Begins June 30, 1965, at 10.90. On that day the average price of a share yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, of stock listed on the American Stock Exchange was $10.90. 20-year bond; Wed. closing prices. Common stocks, derived from com­ ponent common stock prices. Average daily volume of trading, normally Note.—Annual data are averages of monthly figures. Monthly and conducted 5 days per week for 5 Vi hours per day, or 27 Vi hours per week. weekly data are averages of daily figures unless otherwise noted and are In recent years shorter days and/or weeks have cut total weekly trading computed as follows: U.S. Govt, bonds, derived from average market to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22yields in table at bottom of preceding page on basis of an assumed 3 per Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31cent, 20-year bond. Municipal and corporate bonds, derived from average 22.5; 1970—Jan. 2-May 1, 25. 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 s r . r e ­ e s o ) f (t a d h m L o o l u o o la s a u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s 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 o n r e ) / (t d h c o o p P h l r u u l a i a s c s r . r e ­ e s o ) f (t a d h m L o o l u o o l s a a u . r n n s o ) l 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—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 ~>2 *> 70.2 28.1 19.5 Nov.............. 7.97 .96 25.3 72.8 34.4 24.6 8.00 .90 226 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.............. 8.29 l.U 25.0 71.1 35.8 25.1 8.26 .98 22.6 70.4 29.7 20.6 Apr.............. 8.24 1.02 24.8 71.3 34.9 24.5 8.19 .90 22.7 70.2 29.6 20.4 May............. 8.28 .98 25.3 71.7 35.8 25.3 8.18 .94 22.8 70.3 30.5 21.1 Juner........... 8.31 .99 25.1 71.3 36.3 25.6 8.19 .98 23.0 71.5 30.5 21.5 Julyr........... 8.32 1.01 25.1 71.5 35.3 24.9 8.21 .95 23.1 71.5 31.0 21.7 1 Fees and charges—related to principal mortgage amount—include based on probability sample survey of characteristics of mortgages loan commissions, fees, discounts, and other charges, which provide originated by major institutional lender groups (including mortgage added income to the lender and are paid by the borrower. They exclude companies) for purchase of single-family homes. Data exclude loans for any closing costs related solely to transfer of property ownership. refinancing, reconditioning, or modernization; construction loans to homebuilders; and permanent loans that are coupled with construction Note.—Compiled by Federal Home Loan Bank Board in cooperation loans to owner-builders. Series beginning 1965, not strictly comparable with Federal Deposit Insurance Corporation. Data are weighted averages with earlier data. See also the table on Home-Mortgage Yields, p. A-53. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 36 STOCK MARKET CREDIT a SEPTEMBER 1970 STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In millions of dollars) (Per cent of total adjusted debt, except as noted) ma C r r g e i d n it c u e s x t t o e m nd e e rs d b to y— to C m u e s - r s’ to C m u e s r ­ s’ c N re e d t it Adjusted d ( e p b e t r / c c o en ll t a ) teral value Total End of period Bro l kers Ba 2 nks Total a d b n n e a c e b l e t i ­ s t c a f b r n n r e a c e e d l e e t ­ i s t b te r n e o b x d k y ­ e e d rs E pe n r d i o o d f Un 20 der 20-29 30-39 40-49 50-59 6 m 0 o o re r ju ( l d i a m s o e d t b n i e ­ l s t d ­ of Unre­ dol­ 1969—July................. 5,170 2,700 7,870 7,515 2,783 4,732 strict­ Restricted lars) Aug................. 5,000 2,670 7,670 7,019 2,577 4,442 ed Sept................. 4,940 2,620 7,560 7,039 2,579 4,460 Oct................... 5,040 2,570 7,610 7,243 2,753 4,490 Nov................. 5,070 2,520 7,590 7,111 2,613 4,498 1969— 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................... 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.................. 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................. 4,520 2,370 6,890 6,353 2,441 3,912 Dec.. 4.5 27.6 16.2 11.8 7.0 31.0 9,810 Apr.................. 4,360 2,330 6,690 5,985 2,248 3,724 May................ 4,160 2,290 6,450 5,433 2,222 3,211 1970—Jan... 1.7 27.6 16.7 11.4 7.9 34.9 9,280 June................ 3 1\ / 3 4 ,I 8 5 6 0 0 \ / 2,290 6,150 5,281 2,009 3,272 M Feb a . r . . . 4 3 . .7 2 2 27 6 . . 1 9 1 1 6 6. . 3 8 1 1 1 1 . . 6 4 7 7 . . 5 9 3 3 2 3 . . 8 8 9 8 , , 0 8 4 8 0 0 July................. 3 , 790 2,290 6,080 (4) 52,258 (4) Apr.. 1.5 21.8 16.7 12.1 9.3 38.6 8,450 Unrestricted Restricted1 1 End of month data. Total amount of credit extended by member firms of the N.Y. Stock Exchange in margin accounts, excluding credit extended on convertible bonds and other debt instruments and in special subscrip­ May. 1.0 4.8 31.8 13.9 8.8 39.8 9,100 tion accounts. June. 1.3 1.0 23.3 24.9 9.4 40.1 8,490 2 Figures are for last Wed. of month for large commercial banks re­ July.. 1.1 1.0 32.7 16.7 9.0 39.5 8,610 porting weekly and represent loans made to others than brokers or dealers for the purpose of purchasing or carrying securities. Excludes loans col­ lateralized by obligations of the U.S. Govt. 1 Debt representing more than 30 per cent but less than 35 per cent of Change in series. From Jan. 1966 to June 1970 the total of broker- collateral value is unrestricted as of May 6, 1970, but is not separable from extended margin credit was estimated by expanding the total of such the remainder of this category. credit extended by a small sample of New York Stock Exchange member firms according to the proportion of total Customers’ Net Debit Balances Note.—Adjusted debt is computed in accordance with requirements set extended by these firms. Beginning with June 30, 1970, total broker-ex- forth in Regulation T and often differs from the same customer’s net debit tended margin credit is derived from reports by the majority of New York balance mainly because of the inclusion of special miscellaneous accounts Stock Exchange member firms that carry margin accounts for customers; in adjusted debt. Collateral in the margin accounts covered by these data these firms, as a group, account for nearly all such credit extended by now consists exclusively of stocks listed on a national securities exchange. members of that exchange. Unrestricted accounts are those in which adjusted debt does not exceed the 4 Series discontinued. loan value of collateral; accounts in all classes with higher ratios are 5 Change in series. restricted. Note.—Customers’ net debit and free credit balances are end-of-month ledger balances as reported to the New York Stock Exchange by all member firms that carry margin accounts. They exclude balances carried for other member firms of national securities exchanges as well as balances SPECIAL MISCELLANEOUS ACCOUNT BALANCES of the reporting firm and of its general partners. Net debit balances are AT BROKERS, BY EQUITY STATUS OF ACCOUNTS 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 (Per cent of total, except as noted) credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use Equity class of accounts until withdrawn. Net in debit status Total End of period credit balance EQUITY STATUS OF MARGIN ACCOUNT DEBT status 60 per.cent Less than (millions AT BROKERS or more 60 per cent of dollars) (Per cent of total debt, except as noted) 1969—July........................ 51.4 42.0 6.6 4.950 Total Equity class (per cent) 5 5 3 2 . . 0 6 4 4 0 0 . . 0 7 6 6 . . 9 7 4 4 , , 8 8 8 0 0 0 debt 52.8 40.8 6.4 4,780 (mil­ 54.8 37.8 7.3 4,670 E pe n r d i o o d f l d io o o n f l­ s 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er 1970—Jan......................... 5 5 3 4 . .8 0 3 3 8 7. . 3 2 7 8 . .7 9 4 4 , , 6 7 2 6 0 0 lars)! Feb......................... 53.0 38.3 8.8 4,420 54.0 34.7 11.2 4,340 1969— S J A O u e u c l p y g t t . . . . . . . . . 4 5 5 5 , , , , 9 0 1 0 4 4 7 0 0 0 0 0 2 1 1 1 0 7 7 4 . . . . 8 4 0 4 2 2 2 2 4 4 2 3 . . . . 3 5 0 4 1 1 1 1 8 8 8 8 . . . . 3 3 8 4 1 1 1 1 2 2 3 1 . . . . 5 3 8 6 8 7 8 8 . . . . 8 4 6 4 2 2 1 1 1 9 0 8 . . . . 1 1 4 0 July....................... 5 5 4 4 4 0 9 7 . . . 5 5 3 0 4 3 3 3 0 9 8 5 . . . . 1 5 8 9 1 1 1 1 0 1 0 1 . . . . 9 2 9 4 4 4 4 4 , , , , 8 5 3 1 9 4 5 4 0 0 0 0 Nov.. 5,070 16.9 23.5 17.8 12.2 8.9 20.6 Dec.. 4,690 16.6 22.3 17.0 12.8 9.5 21.8 Note.—Special miscellaneous accounts contain credit balances that 1970—J A M F a e p n a b r r . . . . . . . . . 4 4 4 4 , , , , 3 5 6 6 7 8 6 2 0 0 0 0 1 1 1 1 5 5 3 1 . . . . 3 7 8 8 2 2 2 1 1 0 1 8 . . . . 1 1 3 0 1 1 1 1 6 6 5 4 . . . . 1 3 5 8 1 1 1 1 3 3 3 3 . . . . 3 4 8 4 1 1 1 11 0 1 1 . . . . 1 8 2 6 2 2 2 3 2 4 4 0 . . . . 5 9 0 2 c m p sa o u a l l r e y l c s a h t b p e a e r s r a o e u l s c s . e i e n e B d d a t s b h l ) a y e n o c c c c e u c u s u s s t r t o m o . m m ay e e r r s a ’ s ri a s s m e t a h a r s e g i t n m ra a a n r c s g c f i e o n r u s d n b e t p a o s o r e s d i d t e o r p n e o q s l u o i i t a r s e n d o v f f a o c lu a r e s a s h d o d (u f i t s o i u o t a h n l e l a y r l May. 4,160 9.6 15.8 18.3 14.2 13.5 28.6 June. 3,860 8.3 12.4 18.8 15.7 13.5 31.4 July.. 3,790 8.1 15.1 21.1 16.0 13.8 25.8 1 See footnote I to table above. Note.—Each customer’s equity in his collateral (market value of col­ lateral less net debit balance) is expressed as a percentage of current col­ lateral value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 directly Accepting banks F.R. Banks Total Im­ Ex­ Total Others ports ports All re B l a a n te k d Other1 re B la a j n te k d Other2 Total Own Bills Own e F i o gn r­ U i n n i t t o ed U f n ro it m ed other bills bought acct. States States 196 4 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 1 ,719 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969—July. 28,341 889 9,463 975 17,014 4,991 1,388 1.123 264 40 162 3,402 1,779 1,006 2,206 Aug. 29,515 949 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.. 31.881 1,088 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.. 34,277 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 1,271 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 Apr. 37.881 1,088 12,647 5,454 18,692 5,614 1,577 1,314 263 106 194 3,737 2,034 1 ,137 2,444 May 39,589 1,126 12,826 6,339 19,298 5,801 1 ,539 1,287 252 42 231 3,989 2,139 1 ,189 2,472 June -37,663 1,044 rl 1,945 6,424 r18,250 5,849 1 ,589 1,339 250 32 232 3,996 2,190 1,162 2,497 July. 36,826 986 11,048 6,699 18,093 5,973 1 ,599 1,324 275 37 239 4,098 2,294 1 ,198 2,482 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 (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 End of period M ga o g r e t­ Other G U o .S vt . . S l a o t n c a d a te l C r a o a n r t d p e o­ Cash O as t s h e e ts r l T ia a t o i b n e t i d s a l i l ­ De it 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 n u 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 govt. other1 general reserve accts. 3 or 3-6 6-9 Over Total less 9 I960................ 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 1,200 1961................ 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 1 *654 1962................ 32,056 602 6,107 527 5,177 956 695 46 121 41,336 828 3,957 2*548 1963................ 36,007 607 5,863 440 5,074 912 799 49*702 44,606 943 4,153 2*549 1964................ 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965................ 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966................ 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2 010 1967................ 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968................ 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—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 Apr__ 56,279 2,048 3,294 188 11,319 853 1,385 75,366 67,861 1,906 5,599 603 500 455 801 2,360 May... 56,423 2,223 3,362 190 11,465 852 1,374 75,889 68,196 2,071 5,621 616 502 388 769 2,275 June... 56,644 2,131 3,214 197 11,766 956 1 ,404 76,312 68,724 1,957 5,631 646 474 363 707 2,190 July. . . 56,804 2,239 3,241 196 11,945 920 1 ,459 76,804 69,039 2,121 5,643 665 457 351 678 2,151 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 □ SEPTEMBER 1970 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total United State and Foreign 1 Total Bonds Stocks gages estate loans assets States local 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--May............................... 192,649 11 ,153 4,645 3,273 3,235 83,652 70,045 13,607 70,716 5,703 12,126 9,299 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- 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 Mar................................ 199,403 10,941 4,505 3,242 3,194 85,344 71 ,532 13,812 72,616 5,990 14,535 9,977 Apr................................. 199,090 10,833 4,414 3,223 3,196 85,103 71,764 13,339 72,793 6,030 14,759 9,572 May............................... 199,173 10,895 4,472 3,226 3,197 84,633 71 ,858 12,775 72,982 6,061 14,951 9,651 June............................... 199,683 10,788 4,401 3,222 3,165 84,656 71,894 12,762 73,165 6,103 15,180 9,791 i Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o g r e t s ­ I s n m i e t v i c e e e u s n s r t 1 t ­ ­ 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 y ­ d 3 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 i u n n e t g s d ri t o a a o d n t f d ­ 196 1 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1 ,550 1.136 1,872 196 2 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1 ,999 1,221 2,193 196 3 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,572 196 4 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,549 196 5 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2,707 196 6 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1,270 2.136 1,482 196 7 121,805 9,180 3.442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3,004 196 8 130,802 ill ,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3,584 196 9 140,169 10.814 2.443 11,026 162,353 135,494 11,176 9.783 2,426 3,474 2,812 1969—June, 136,242 11.475 2,529 10,363 158,627 134,839 10,674 6,768 3,007 3,339 1 ,532 4,373 July. 137,107 11,301 1,957 10,371 158,634 133,729 10,671 7,392 2,978 3,824 1 ,346 4,145 Aug. 137,951 11,388 1,902 10,635 159,630 133,721 10,669 7,885 2,874 4,471 1,148 3,775 Sept. 138,618 11,260 1,931 10,723 160,279 134,600 10,663 8,295 2,749 3,972 1,057 3,530 Oct.. 139,226 11,171 1,910 10,798 160,840 134,194 10,662 8.783 2,648 4,553 1,023 3,293 Nov. 139,676 11,392 2,114 11,055 161,856 134,420 10,655 9,123 2,539 5,119 882 3,079 Dec., 140,209 10.814 2,441 10,959 162,162 135,489 11,226 9,754 2,454 3,239 807 2,812 1970—Jan.. 140,345 10,821 1,866 11,020 161,686 134,072 11,249 10,230 2,300 3,835 772 2,738 Feb., 140,568 11,084 2,086 11,343 162,465 134,277 11,246 10,262 2,202 4,478 846 2,815 Mar. 140,766 11,423 2,225 11,701 163,253 135,872 11,234 10,036 2,170 3,941 1,084 3,041 Apr. 141,252 11.475 2,361 11,999 164,018 136,079 11 ,239 10,079 2,223 4,398 1,391 3,487 May, 141,975 12,029 2,525 '9,064 165,593 136,832 11,241 10,192 2,293 5,035 1 ,588 3,956 June 143,103 12,018 2,645 9.130 166,896 138,633 11.607 10,503 2,460 3,693 1 ,544 4,038 July. 144,198 12,538 2,402 9.130 168,268 139,199 11.607 10,583 2,520 4,359 1 ,705 4,336 1 U.S. Govt, securities only through 1967. Beginning 1968 the total preceding page) except that figures for loans in process are not included reflects liquid assets and other investment securities. Included are U.S. above but are included in the figures for mutual savings banks. Govt, obligations, Federal agency securities, State and local govt, securi­ ties, time deposits at banks and miscellaneous securities, except FHLB Note.—Federal Home Loan Bank Board data; figures are estimates for stock. all savings and loan assns. in the United States. Data are based on 2 Includes other loans, stock in the Federal home loan banks, other monthly reports of insured assns. and annual reports of noninsured assns. investments, real estate owned and sold on contract, and office buildings Data for current and preceding year are preliminary even when revised. and fixtures. Figures for Jan. and June 1968 reflect conversion of one savings and loan 3 Consists of advances from FHLB and other borrowing. assn. to a mutual savings bank. Figures for June 1968 also reflect exclu­ 4 Insured savings and loan assns. only. Data on outstanding commit­ sion of two savings and loan assns. in process of liquidation. Data for ments are comparable with those shown for mutual savings banks (on 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

SEPTEMBER 1970 a 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 v m a A t n e o d c m e ­ ­ s I m nv e e n s ts t­ p C a o d a n s e s d i ­ h ts B n a o o n n te d d s s p M o b d e s e e m 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 D n t a e u o n b r t e e d e s s n­ c L a o t o o i t v a o p e n e s s r­ D t e u b re e s n­ c L o a d o u n i a s n d n ­ t s s 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—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 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 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 1,457 9,500 9,756 1,680 1,429 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 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 Apr... 9,860 3,090 89 9,993 1,110 1,574 12,456 12,411 1,828 1,594 4,810 4,591 6,890 c6,113 May.. 10,008 2,964 78 9,888 1 ,189 1,579 13,287 12,605 1 ,796 1 ,539 4,942 4,739 6,943 6,113 June.. 10,236 2,844 106 9,880 1 ,333 1 ,586 13,659 13,165 1 ,749 1 ,509 5,097 4,879 6,995 6,179 July. . n.a. n.a. n.a. n.a. n.a. n.a. 14,085 13,401 1 ,762 1 ,518 5,034 4,980 7,026 6,259 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, JULY 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 homeloan banks Federal National Mortgage Federal land banks Notes: Association—Cont. Bonds: 9/25/69 - 7/27/70. . . 8.40 650 Debentures: 10/1/57 - 10/1/67-70. 41/2 75 11/25/69 - 9/25/70. . 8 H 650 4/10/69 - 6/10/71 6.85 250 2/15/57 - 2/15/67-72. 4 K 72 12/22/69 - 11/25/70. 8.70 250 12/12/69 - 7/12/71 . . . 8.60 400 7/15/69 - 8/20/70. 8.15 270 Bonds: 8/23/60 - 8/10/71 ___ 4 H 63 12/23/68 - 10/20/70. . 6.30 223 4/25/69 - 8/25/70. . . 6.70 200 4/10/70 - 8/10/71 7.38 200 4/21/69 - 2/23/71 ___ 6.80 431 8/25/69 - 8/25/70. . . 8.20 650 7/10/70 - 8/10/71___ 8.05 250 2/20/70 - 4/20/71 8% 300 10/27/69 - 10/27/70. 81/4 650 9/11/61 - 9/10/71 41/2 96 4/20/70 - 4/20/71 7.35 225 1/26/70 - 1/26/71.. . 8.63 600 9/10/68 - 9/10/71___ 5/4 350 5/1/56 - 5/1/71........... 3% 60 2/25/69 - 2/25/71. . . 6.60 200 6/10/70 - 10/21/71. . . 8.45 500 7/15/69 - 7/20/71 8.15 270 7/25/69 - 2/25/71. . . 8.00 400 5/10/69 - 11/10/71 . . . 6.85 350 10/20/69 - 7/20/71 . . . 8.45 232 3/25/70 - 3/25/71 . . . 7.70 850 3/10/70 - 12/10/71 . .. 6*4 500 10/20/68 - 10/20/71 . . 6.00 447 9/25/69 - 4/26/71. . . 8^8 250 2/10/60 - 2/10/72___ 98 8/20/68 - 2/15/72___ 5.70 230 4/27/70 - 4/26/71. . . 7.25 400 3/10/69 - 3/10/72___ ey4 250 6/22/70 - 7/20/72___ 8.20 442 5/26/69 - 5/25/71 . . . 7.00 350 10/14/69 - 3/10/72. . . ey4 200 9/14/56 - 9/15/72___ 3K 109 5/25/70 - 5/25/71. . . 8.20 500 12/11/61 - 6/12/72. . . 4Vs 100 9/22/69 - 9/15/72___ 8.35 337 2/25/70 - 6/25/71 . . . 8.45 650 2/10/70 - 6/12/72___ 8.70 300 10/23/72 - 10/23/72. . 5Vs 200 10/27/69 - 11/26/71 . 8.20 250 5/11/70 - 9/11/72___ 8.40 400 7/20/70 - 1/22/73___ 7.95 407 11/25/69 - 2/25/72. . 8.20 200 6/10/70 - 9/11/72___ 7.40 200 2/20/63 - 2/20/73-78. 4M 148 6/26/70 - 2/25/72. . . 8.20 300 11/10/69 - 12/11/72. . 8.00 200 1/20/70 - 7/20/73___ 8.45 198 5/25/70 - 5/25/72. . . 8.15 200 12/12/69 - 3/12/73. . . 8.30 250 4/20/70 - 10/22/73. . . 7.80 300 2/25/70 - 2/26/73. . . 8.35 350 6/12/61 - 6/12/73___ 41/4 146 2/20/72 - 2/20/74___ 4 V4 155 1/26/70 - 1/25/74. . . 8.40 300 7/10/70 - 6/12/73. . . . 8.35 350 2/20/70 - 1/20/75___ 220 6/26/70 - 2/25/74. . . 8.40 250 3/10/70 - 9/10/73___ 8.10 300 4/20/65 - 4/21/75___ 200 8/25/69 - 8/25/74. . . 7.65 188 4/10/70 - 3/11/74___ 7.75 350 2/21/66 - 2/24/76. 5.00 123 11/25/69 - 11/25/74. 8.00 242 9/10/69 - 9/10/74. . .. 7.85 250 7/20/66 - 7/20/76.... 5M 150 3/25/70 - 2/25/80. . . 7.75 350 2/13/62 - 2/10/77. 41/2 198 5/2/66 - 4/20/78 ......... 5Ks 150 Banks for cooperatives 2/20/67 - 1/22/79. . .. 5.00 285 Federal National Mortgage Debentures: Association—S econ dary 2/2/70 - 8/3/70........... 8.65 423 market operations 4/1/70 - 10/1/70......... 7.45 288 Tennessee Valley Authority Discount notes................... 3,231 5/4/70 - 11/2/70......... 224 Short-term notes............... 331 Capital debentures: 6/1/70 - 12/1/70......... 77V.740n 288 Bonds: 9/30/68 - 10/1/73........... 6.00 250 7/1/70 - 1/4/71........... 8.05 295 6/1/69 - 6/1/74............. 8.50 100 4/1/70 - 4/1/75............... 8.00 200 Federal intermediate 6/15/70 - 6/19/75......... 8.75 50 Mortgage backed bonds: credit banks 11/15/60 - 11/15/85. . . 4.40 50 6/1/70 - 6/1/71 ............... 8.13 150 Debentures: 7/1/61 - 7/1/86............. 4^8 50 6/1/70 - 6/2/75............... 8.38 250 11/3/69 - 8/3/70......... 7.95 499 2/1/62 - 2/1/87............. 41/2 45 Debentures: 12/1/69 - 9/1/70......... r8.75 508 5/15/67 - 5/15/92......... 5.70 70 9/12/60 - 9/10/70........... 4% 119 1/5/70 - 10/1/70......... 8.80 613 11/1/67 - 11/13/92. . . . 6% 60 10/11/67 - 10/13/70. 5 Va 400 2/2/70 - 11/2/70......... 8.65 656 10/15/69 - 10/15/94. . . 81/4 100 9/10/69 - 11/10/70......... 8.30 350 3/2/70 - 12/1/70......... 8.10 401 3/17/70 - 3/15/95......... 9.00 100 7/10/69 - 12/10/70......... 8.10 250 4/1/70 - 1/4/71 ........... 7.50 560 6/15/70 - 6/95............... 9.00 50 10/14/69 - 2/10/71......... 8.75 400 5/4/70 - 2/1/71........... 7.40 592 3/11/68 - 3/11/71........... 6.00 350 6/1/70 - 3/1/71........... 8.15 511 2/10/70 - 4/12/71........... 8.75 500 7/1/70 - 4/1/71 ........... 8.05 437 11/10/69 - 5/10/71......... 8.20 400 3/2/70 - 3/1/73........... 8.15 203 Digitized for FR N AoStEe. R — 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 □ SEPTEMBER 1970 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public ; Less: Cash and Memo: iture account monetary assets Net Period r B e 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 le N in n e g d t ­ B l o u a u d y t g s ­ e 1 t s B d u u ( e r o f d - p i r g c ) lu i e t s t s P e d u t c e i b u e b s l r t i i c ­ s A P e t g c i lu e e u s n s 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 G v t t e s o h s v e t t ­ r , S n L p o e e t c s e s i s a : 4 l b E T o q i r o n u r t g o a a w l l s ­ : b o a T p s l i u e r a n e r r n g a y a c ­ t e ­ Other f m O i n n in e t o a e h a g f n t e n , 5 c r s ­ t p o r s w d r a h i e t n n v i o b s p a e f t t r 2 e e ­ r issues Fiscal year: 196 7 149,552 153,201 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 6,030 178,833 -25,162 21,357 5,944 3,271 2,049 -1,119 23,100 -397 1,700 3,364 196 9 187,792 183,080 1,476 184,556 3,236 6,142 633 7,364 2,089 -1,384 -1,295 596 1,266 -82 9,853 1970*....................... 193,844 194,968 1 ,784196,752 -2,908 17,198 -1,740 9,386 676 5,397 2,151 -684 -1 ,021 Half year: 1968—July-Dee.... 82,899 92,210 977 93,186 -10,287 10,450 1,446 -280 1 ,489 -384 11,072 -598 27 -1,356 9,853 1969—Jan.-June... 104,893 90,871 500 91,370 13,523 -4,309 -815 7,643 604 -1,000 -12,370 1 ,194 1,240 1 ,280 July-Dee.... 90,830 97,573 1 ,354 98,930 -8,100 14,505 -429 3,935 329 9,813 -567 315 -1,963 1970—Jan.-June''.. 103,014 97,395 430 97,823 5,190 2,693 -1 ,310 5,446 351 -4,415 2,718 -999 944 Month: 1969—Jul y r12,642 r15 ,639 152 r15,791 -3,150 3,292 31,316 -21 191 34,438 -217 r — 69 *-1,574 Aug.............. 15,009 16,800 316 17,116 -2,107 3,175 -829 1 ,543 124 679 -1,651 -62 -285 Sept.............. 20,412 17,174 448 17,622 2,790 498 -643 521 -291 -375 2,608 577 770 Oct............... 11,811 17,580 342 17,923 -6,112 3,709 -47 -826 99 4,388 -1,166 19 577 Nov.............. 14,336 15,229 236 15,466 -1,130 3,71~ -141 780 103 2,695 958 -4 -610 Dec............... 16,709 15,237 -140 15,097 1 ,612 113 -85 1 ,938 103 -2,012 -1,099 269 -430 1970—Ja..................n 16,297 16,558 -164 16,394 -97 -654 -64 -717 193 -194 1,100 6775 62,166 Feb............... 14,938 14,999 -104 14,894 43 1 ,275 -789 1,204 -579 -139 191 -436 -149 Mar.............. 13,119 16,310 238 16,548 -3,429 3,161 21 770 97 2,314 316 -768 664 Apr............... 22,029 17,844 200 18,043 3,986 -4,813 -39 -285 123 -4,691 85 526 1,317 May............. 13,982 16,333 108 16,441 -2,459 3,893 -278 1 ,565 599 1 ,452 -1,008 -1,258 -1 ,259 June*........... 22,649 15,367 136 15,503 7,146 -169 -161 2,909 -82 -3,157 2,034 162 -1 ,795 July.............. 12,617 19,352 -17 19,335 -6,718 5,649 -38 -233 -153 5,997 -646 -386 -312 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 b G ala o n ld ce Total s * e P c d u u e b r b i l t t i i c e s s A ec g u e r n it c ie y s S i p s G I s e u n c o e v 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 b u y l t d a l a i l c l s: s c p p o G r o N r i n o p v o s v a s w o t . t — r e . - e 7 d Fiscal year: 1967.......................... 1 ,311 4,272 112 5,695 326,221 18,455 56,155 17,663 3,328 267,529 9,220 1968.......................... 1 ,074 4,113 111 5,298 347,578 24,399 59,374 19,766 2,209 290,629 10,041 1969.......................... 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 1970*........................ 1,005 6,929 111 8,045 370,919 12,509 76,124 21,599 825 284,880 35,789 Calendar year: 1968.......................... 703 3,885 111 4,700 358,029 15,064 59,094 20,318 1 ,825 291,855 21,481 1969.......................... 1 ,312 3,903 112 5,327 368,226 13,820 70,677 21,250 825 289,294 30,578 Month: 1969-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 34,214 Apr............... 1,784 5,123 111 7,019 367,194 12,948 71,650 21,082 825 286,584 34,815 May............. 1,295 4,605 111 6,011 371,088 12,670 73,215 21,681 825 288,036 35,068 June*........... 1,005 6,929 111 8,045 370,919 12,509 76,124 21,599 825 284,880 35,789 July............... 1,200 6,087 111 7,399 376,568 12,471 75,891 21,446 825 290,877 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

SEPTEMBER 1970 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Corporation Social insurance taxes Individual income taxes income taxes and contributions Period Total 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 r i e o p ­ s ts s fu R n e d ­ s c E P o r m o t n a a y l t x p l r ­ i e l b o s u y a t m S n i e o e d l n f n - s t 1 i e n 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 E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i p e s ­ t c s . 3 taxes empl. Fiscal year: 196 7 149,55250,521 18,850 7,845 61,52634,918 946 26,047 1,776 3,659 1,867 33,349 13,719 1,901 2,978 2,108 196 8 153,671 57,301 20,951 9,52768,72629,897 1,232 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 196 9 187,79270,18227,258 10,191 87,24938,338 1,660 32,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,916 197035........ 193,84477,37626,243 13,251 90,36835,036 2,206 37,190 1,943 3,468 2,69945,300 15,711 2,431 3,618 3,588 Half year: 1968—July-Dee... 82,89933,736 5,515 47638,775 15,494 784 14,944 131 1,289 1,179 17,544 7,834 1,213 1,417 1,405 1969—Jan.-June.. 104,893 36,44621,743 9,715 48,47422,844 876 17,577 1,584 2,039 1,174 22,374 7,388 1,106 2,074 1,511 July-Dee... 90,83038,766 5,771 48144,056 15,179 982 17,057 131 1,270 1,283 19,741 8,242 1,263 1,496 1,837 1970—Jan-. June?. 103,01438,61020,473 12,76946,316 19,856 1 ,22320,134 1,811 2,197 1,41625,555 7,469 1,168 2,123 1 ,751 Month: 1969—July. '12,642 '6,034 548 150 '6,433 1,196 126 2,510 124 244 2,879 1,419 222 221 '400 Aug.. 15,009 7,014 319 103 7,230 716 145 4,392 601 217 5,209 1,263 213 257 266 Sept.. 20,412 5,948 3,912 84 9,776 5,673 122 2,655 111 51 205 3,022 1,295 215 254 299 Oct.. 11,811 6,284 419 67 6,636 1,180 336 2,044 12 93 216 2,364 1,259 231 264 213 Nov.. 14,336 7,108 160 33 7,236 778 144 3,547 343 187 4,078 1,606 185 222 374 Dec.. 16,709 6,407 412 45 6,774 5,637 110 1,908 59 214 2,181 1,400 197 277 345 1970—Jan... 16,297 6,203 4,491 3510,660 1,252 125 2,179 111 129 254 2,674 1,154 195 286 201 Feb... 14,938 7,535 886 1,456 £,965 774 128 4,224 139 842 203 5,408 1,206 165 265 283 Mar.. . 13,119 6,091 1,235 3,907 3,419 4,559 320 3,006 146 64 221 3,436 1,192 202 322 309 Apr__ 22,029 5,748 8,992 4,039 10,701 4,895 317 2,847 1,081 234 259 4,419 1,226 207 599 300 May.. 13,982 7,058 1,063 2,863 5,258 862 148 4,585 207 857 202 5,851 1,319 192 348 300 June*. 22,649 5,975 3,806 469 9,313 7,514 185 3,293 127 71 277 3,767 1,372 207 303 358 July.., 12,617 6,040 477 236 6,281 1,071 234 2,745 186 255 3,185 1,439 218 293 364 Budget outlays4 Period Total t f i e N o d n n e a s ­ a ­ e l a I f n fa tl ir . s s S e p r a e a r ­ c c e h A t c u g u r r l e ­ i­ so N u u r r e a r a c ­ t l ­ es m t C r a a o e n n r m d c s e p ­ . d h C e o m a v u o n u e s m d l n i o n . - p g . E p m t o d a i w n u a o n d c 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 n v r ­ s a t s , - ­ 5 Fiscal year: 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*...................................... 196,752 80,253 3,500 3,749 6,484 2,522 9,259 3,113 7,434 56,499 8,684 18,277 3,355 -6,377 1971*6.................................... 7200,771 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—July-Dee................... 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................... 98,930 40,598 1,941 1,841 5,479 1,515 4,610 1,826 3,118 26,063 4,148 8,623 1,534 -2,365 1970—Jan.-June p............... 97,823 39,650 1,560 1,909 1,009 1,011 4,648 1,300 4,317 30,436 4,537 9,654 1,808 -4,012 Month: 1969—July............................ '15,791 '6,663 323 319 659 223 613 249 404 4,306 661 1,364 '242 -234 Aug............................ 17,116 6,868 299 337 1,130 369 858 312 516 4,342 669 1,440 289 -314 Sept............................ 17,622 6,767 357 294 1 ,801 286 785 225 659 4,227 693 1,513 231 -215 Oct............................. 17,923 7,267 374 327 1,108 263 964 588 646 4,492 694 1,220 227 -248 Nov............................ 15,466 6,303 443 267 393 188 735 228 391 4,246 710 1,571 253 -263 Dec............................. 15,097 6,833 145 297 385 186 655 224 501 4,450 722 1,515 275 -1,091 1970—Jan.............................. 16,394 6,648 161 290 659 113 713 212 583 4,700 729 1,537 305 -256 Feb............................. 14,894 6,199 298 299 -187 109 571 158 719 4,510 719 1,614 249 -364 Mar............................ 16,548 6,608 312 325 76 181 683 257 532 5,019 801 1,686 312 -242 Apr............................. 18,043 6,806 336 332 107 185 967 281 642 5,996 751 1,631 258 -249 May........................... 16,441 6,516 296 285 144 211 715 99 694 5,207 806 1,563 308 -401 June**......................... 15,503 6,873 157 378 210 212 999 293 1,147 5,004 731 1,623 376 -2,500 July............................ 19,335 6,794 199 268 2,430 208 843 471 553 5,276 732 1,597 198 -234 1 Old-age, disability, and hospital insurance, and Railroad Retirement 5 Consists of government contributions for employee retirement and accounts. interest received by trust funds. 2 Supplementary Medical Insurance premiums and Federal employee Estimates presented in Feb. 1970 Budget Document. Breakdowns do retirement contributions. not add to totals because special allowances for contingencies, Federal pay 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ increase, and allowance for revenue sharing, totaling $2,575 million ous receipts. for fiscal 1971, are not included. 4 Outlays by functional categories are published in the Monthly 7 On May 19, 1970, the administration revised the Budget estimates— Treasury Statement (beginning April 1969). Monthly back data (beginning increasing total outlays to $205.6 billion; revised figures for the functional July 1968) are published in the Treasury Bulletin of June 1969. breakdown are not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES □ SEPTEMBER 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 Con­ Nonmarketable i S ss p u e e c s ia 4 l debt 1 Total v ib e l r e t­ Sav­ Total Bills C c e a r t t e if s i­ Notes Bonds 2 bonds b i o n n g d s s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1962—Dec. 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec. 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec. 317.9 267.5 212.5 56.5 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—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 May 371.1 295.8 236.6 80.1 93.5 63.0 2.4 56.9 52.0 73.3 June 370.9 292.7 232.6 76.2 93.5 63.0 2.4 57.7 52.0 76.3 July. 376.6 298.5 237.8 81.4 93.5 62.9 2.4 58.3 52.0 76.1 Aug. 380.9 301.4 240.5 81.9 99.9 58.7 2.4 58.5 52.1 77.5 1 Includes non-interest-bearing debt (of which $630 million on July 31, 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 io o d f p T g d u r o e b o t b l s a i t s c l ag G t U e a r o n u n .S v c d s i . t t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l s M 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 s e 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 t n e e n d i r g a ­ n l 1 i O m t n o v t i r h 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 '24.3 50.3 '24.3 14.5 '19.4 1967—Dec................. 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 '24.1 51.2 '22.8 15.8 '19.9 1968—Dec................. 358.0 76.6 52.9 228.5 r66.0 3.6 8.0 '14.2 '24.4 '51.9 '23.9 14.3 '22.4 1969—July................. 357.0 85.0 54.1 217.9 '56.3 3.2 7.4 '13.3 '25.3 '51.7 '26.6 11.1 '22.8 Aug................. 360.2 86.6 54.9 218.6 r55.0 3.2 7.2 '14.3 '25.7 '51.7 '27.0 11.9 '22.8 Sept................ 360.7 86.9 54.1 219.6 '54.7 3.1 7.1 '12.7 '25.8 '51.6 '27.6 '12.9 '23.9 Oct.................. 364.4 86.1 55.5 222.7 '56.0 3.0 7.1 '13.9 '25.4 '51.7 '28.3 '12.5 '24.7 Nov................ 368.1 87.0 57.3 223.8 '56.7 3.0 7.2 '14.3 '25.9 '51.7 '28.5 '11.6 '24.8 Dec................. 368.2 89.0 57.2 222.0 '56.8 2.9 7.1 '13.3 '25.4 '51.8 '29.1 '11.4 '24.1 1970—Jan.................. 367.6 88.6 55.5 223.5 '54.6 2.9 7.2 '13.9 '26.1 '51.7 '30.4 '11.7 '24.9 Feb................. 368.8 89.4 55.8 223.6 '53.0 2.9 7.1 '13.2 '26.2 '51.6 '31.1 '12.3 '26.1 Mar................ 372.0 90.4 55.8 225.9 '55.5 2.9 7.0 '12.7 '25.5 '51.6 '31.6 '13.2 '25.9 Apr................. 367.2 90.2 56.5 220.5 '54.5 2.8 7.1 '11.9 '24.7 '51.6 '31.1 '13.2 '23.6 May............... 371.1 92.3 57.3 221.4 '53.9 2.9 6.9 '12.5 '25.2 '51.6 '31.4 '13.8 '23.3 June............... 370.9 95.2 57.7 218.0 '53.3 2.9 6.8 '11.1 '24.6 '51.6 '30.9 '14.8 '22.0 July................. 376.6 94.8 58.6 223.2 55.1 2.8 7.1 12.0 24.2 51.6 31.2 '15.9 23.4 1 Consists of investments 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

SEPTEMBER 1970 □ U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year 1-5 5-10 10-20 Over Type of holder and date Total years years years 20 years Total Bills Other All holders: 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—June 30............................................................. 232,599 105,530 76,154 29,376 89,615 15,882 10,525 11,048 July 31............................................................. 237,821 110,813 81,437 29,376 89,615 15,876 10,514 11,004 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—June 30..................................................... 16,974 2,707 967 1,740 7,185 2,282 2,413 2,387 July 31..................................................... 16,805 2,500 792 1,708 7,219 2,285 2,413 2,387 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—June 30..................................................... 57,714 26,381 22,408 3,973 25,396 5,314 235 389 July 31..................................................... 58,597 27,263 23,290 3,973 25,396 5,314 235 389 Held by private investors: 1967 Dec. 31.................................................... 1968—Dec. 31..................................................... i68,473 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—June 30..................................................... 157,911 76,442 52,779 23,663 57,034 8,286 7,877 8,272 July 31..................................................... 162,419 81,050 57,355 23,695 57,000 8,277 7,866 8,228 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—June 30............................................ 42,451 13,070 4,384 8,686 25,651 2,956 533 241 July 31............................................ 43,926 14,750 5,815 8,935 25,420 2,934 577 246 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—June 30............................................ 2,848 542 147 395 1,258 207 423 419 July 31............................................ 2,816 510 142 368 1,262 211 417 415 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—June 30......................................... 5,869 674 250 424 1,865 333 1,780 1 ,217 July 31............................................ 6,118 913 510 403 1,867 339 1,789 1 ,210 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—June 30............................................ 3,640 2,286 1 ,257 1,029 1,253 57 38 6 July 31............................................ 4,170 2,828 1,972 856 1,263 36 38 6 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—June 30............................................ 3,564 682 201 481 2,031 177 356 318 July 31............................................ 3,542 679 219 460 2,019 178 353 312 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—June 30............................................ 13,236 5,926 4,764 1,162 3,243 678 1 ,501 1,889 July 31............................................ 12,657 5,561 4,474 1 ,087 3,105 656 1 ,470 1,865 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—June 30............................................ 86,303 53,262 41,776 11,486 21,733 3,878 3,246 4,182 July 31............................................ 89,190 55,809 44,223 11,586 22,064 3,923 3,222 4,174 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 5,735 commercial banks, 494 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 747 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 487 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 □ SEPTEMBER 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 W 1 y it e h a in r y 1 e - a 5 rs y 5 e - a 1 r 0 s 10 O y v e e a r r s U D .S e . a G le o rs v t a , nd b O ro th k e e r rs m b C e a o r n c m k ia s ­ l o A th l e l r securities securities 1969—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 Apr................................. 2,046 1,801 160 59 27 887 70 665 424 387 May................................ 2,164 1,685 337 106 36 868 73 717 506 378 June................................ 2,146 1,867 190 59 29 728 68 820 529 414 July................................ 2,395 2,073 200 96 27 832 77 914 573 447 Week ending— 1970—July 1......................... 2,774 2,454 226 66 28 1,030 98 1,160 485 627 8......................... 2,339 1,998 214 97 32 714 81 1,052 492 402 15......................... 2,191 1,913 194 61 23 756 72 749 613 411 22......................... 2,517 2,296 133 65 23 950 64 913 590 571 29......................... 2,035 1,807 145 50 33 715 61 770 490 396 Aug. 5.......................... 2,640 1,968 364 283 25 861 94 1,014 672 280 12......................... 2,008 1,429 449 111 18 715 68 748 477 260 19......................... 2,370 1,729 446 169 26 794 70 887 618 484 26......................... 2,234 1,688 362 155 30 796 91 896 452 527 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 m t A a i t e l u 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 l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp ns o r i a­ o A th l e l r 1969—July................. 2,250 1,901 40 300 9 626 1969—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 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 Apr.................. 4,507 4,228 107 164 8 705 4,922 1,293 1,373 546 1,710 May................ 2,668 1,886 461 306 16 654 May........... 2,898 637 830 466 964 June................ 2,199 1,859 111 227 2 615 June........... 2,310 422 626 421 842 July................. 3,267 3,102 -18 171 13 828 July............ 3,214 855 770 518 1,071 Week ending— Week ending— 1970—June 3........... 2,930 2,322 310 289 9 654 1970—June 3... 2,838 636 920 419 863 10........... 2,646 2,239 154 249 5 576 10... 2,766 545 852 478 892 17........... 2,044 1,714 115 216 -1 551 17. .. 2,235 383 611 421 819 24........... 1,662 1,429 39 197 -3 638 24... 2,075 384 447 444 799 July 1.......... 1,980 1,759 9 208 4 697 July 1... 1,837 285 423 342 788 8........... 2,374 2,147 15 200 12 670 8... 2,571 733 669 363 806 15 2,591 2,391 12 182 7 636 15... 2,903 529 467 365 1,542 22........... 3,225 3,053 -21 178 16 916 22. .. 2,981 750 594 580 1,057 29.......... 4,330 4,198 -40 156 15 1,037 29... 4,124 1,258 1,216 701 949 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

SEPTEMBER 1970 □ GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, AUGUST 31, 1970. (In millions of dollars) Issue and coupon rate Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury bonds—Cont Sept. 3, 1970. 3.103 Feb. 4, 1971........ 1,300 Feb. 15, 1972.....434 2,006 Dec. 15, 1967-72.•2Vi 2,572 Sept. 10, 1970. 3.104 Feb. 11, 1971........ 1,303 Feb. 15, 1972..• • -7 Vi 3,361 Aug. 15, 1970.....4 4,129 Sept. 17, 1970. 3.106 Feb. 18, 1971........ 1,298 Apr. 1, 1972.....IVi 34 Aug. 15, 1971.... .4 2,806 Sept. 22, 19701- 1,758 Feb. 25, 1971........ 1,403 May 15, 1972..,...4% 5,310 Nov. 15, 1971.... •37/s 2,760 Sept. 24, 1970. 3.103 Feb. 28, 1971......... 1.700 Oct. 1, 1972... • 1 Vi 33 Feb. 15, 1972.... .4 2,344 Sept. 30, 1970. 1,505 Mar. 22, 1971 f___ 2,517 Apr. 1, 1973 ,...IVi 34 Aug. 15, 1972.... .4 2,579 Oct. 1, 1970. 3,108 Mar. 31, 1971......... 1,702 May 15, 1973......7% 5,846 Aug. 15, 1973.... .4 3,894 Oct. 8, 1970. 3.106 Apr. 22, 19711- . . . 2,261 Aug. 15, 1973......8H 1,845 Nov. 15, 1973.... •41/g 4,346 Oct. 15, 1970. 3.104 Apr. 30, 1971 ......... 1.700 Oct. 1, 1973... .. 1 Vi 30 Feb. 15, 1974,... •41/g 3,127 Oct. 22, 1970. 3.104 May 31, 1971......... 1 ,702 Feb. 15, 1974 .....734 3,147 May 15, 1974,... •4% 3,582 Oct. 29, 1970. 3.102 June 30, 1971 ......... 1,201 Apr. 1, 1974..,...IVi 34 Nov. 15, 1974,... •3% 2,239 Oct. 31, 1970. 1,504 July 31, 1971......... 1,202 Aug. 15, 1974......55/s 10,284 May 15, 1975-85..41/4 1,213 Nov. 5, 1970. 3,112 Aug. 31, 1971........ 1,204 Oct. 1, 1974... . 1 Vi 42 June 15, 1978-83..31,4 1,545 Nov. 12, 1970. 3.102 Nov. 15, 1974,. ...5% 3,981 Feb. 15, 1980,... .4 2,594 Nov. 19, 1970. 3.107 Feb. 15, 1975,.,...5V4 5,148 Nov. 15, 1980,... .3Vi 1,905 Nov. 27, 1970. 3,092 Apr. 1, 1975,..■ • • 1 Vi 3 May 15, 1985,... • 3% 1,078 Nov. 30, 1970. 1,501 Oct. 1, 1970.....IVi 113 May 15, 1975 ., 6 6,760 Aug. 15, 1987-92..41/4 3,811 Dec. 3, 1970. 1,306 Nov. 15, 1970. .5 7,675 Feb. 15, 1976......6Va 3,739 Feb. 15, 1988-93..4 248 Dec. 10, 1970. 1.303 Feb. 15, 1971. ...53/g 2,509 May 15, 1976...• -6Vi 2,697 May 15, 1989-94.•41/s 1,555 Dec. 17, 1970. 1.303 Feb. 15, 1971.. . • .7% 2,924 Aug. 15, 1976.....71/2 1,683 Feb. 15, 1990 .3 Vi 4,765 Dec. 24, 1970. 1.303 Apr. 1, 1971. ....IVi 35 Feb. 15, 1977... . .8 5,163 Feb. 15, 1995 .3 1,292 Dec. 31, 1970. 2,806 May 15, 1971.. ...5% 4,265 Aug. 15, 1977.. ...734 2,246 Nov. 15, 1998 •3% 4,072 Jan. 7, 1971 . 1,311 May 15, 1971.. 8 4,176 Jan. 14, 1971 . 1,305 Aug. 15, 1971.. ...8X 2,254 Treasury bonds Jan. 21, 1971. 1.300 Oct. 1, 1971.. ...11/2 72 Mar. 15, 1966-71. .2 Vi 1,219 Convertiblebonds Jan. 28, 1971 . 1.301 Nov. 15, 1971.....53/g 1,734 June 15, 1967-72..2Vi 1,237 Investment Series B Jan. 31, 1971. 1,503 Nov. 15, 1971 . ...7% 10,743 Sept. 15, 1967-72..21/z 1,951 Apr. 1, 1975-80..2% 2,386 f Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a .S v n t . s . State di s a s t n t a r d t i . ct Other2 Total c E a d ti u o ­ n b R r a i o d n a g d d e s s i U tie ti s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r 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 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 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 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—July... 1,097 826 261 10 405 245 446 1,097 283 169 105 6 533 Aug.... 808 583 213 12 228 255 325 803 209 155 82 2 353 Sept.... 559 361 106 49 43 100 130 329 559 161 6 75 70 245 Oct.. .. 1,280 898 357 24 482 270 526 1,275 379 40 265 69 523 Nov__ 886 489 358 33 5 102 360 422 885 216 168 138 47 318 Dec__ 816 679 134 3 340 192 286 816 211 221 97 289 1970—Jan.... 1,340 838 495 7 311 500 529 1,326 319 91 305 6 608 Feb.... 1,214 901 302 12 346 264 604 1,209 406 59 238 14 442 Mar.... 1,551 1,084 459 7 434 390 727 1,545 393 206 227 85 662 Apr.... 1 ,646 1,215 416 15 468 343 833 1,646 472 167 292 12 703 May... 995 675 312 8 254 311 430 986 299 30 367 11 278 June... 1,070 642 416 12 165 376 529 1 ,070 523 60 146 7 335 July.. . 1,305 1,038 264 3 559 214 532 1,305 261 129 131 4 780 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 □ SEPTEMBER 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 f b fe 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—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............ 5,420 440 1,782 1,254 11 1,933 1,282 969 313 20 630 Nov.......... 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............ 6,144 413 1,648 1,314 133 2,636 2,120 1,595 525 60 456 Feb........... 6,003 416 2,523 1,198 63 1 ,802 1 ,334 1,068 266 50 417 Mar.......... 6,799 461 1,201 1,504 94 3,539 2,385 1,914 471 90 1,064 Apr........... 5,861 387 700 1,625 8 3,141 2,434 2,001 433 67 641 May.......... 9,545 3,701 974 14 3,905 3,438 3,061 377 68 399 Gross proceeds, major groups of corporate issuers Period Manufacturing Commercial and Transportation Public utility Communication Real estate miscellaneous and financial Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1962.................................................. 2,880 404 622 274 573 14 2,279 562 1,264 43 1,397 457 1963.................................................. 3,202 313 676 150 948 9 2,259 418 953 152 2,818 313 1964.................................................. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965.................................................. 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 1966.................................................. 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967.................................................. 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 1968.................................................. 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969.................................................. 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 1969—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........................................ 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........................................ 690 121 172 165 330 10 557 81 229 4 141 134 Feb....................................... 314 43 65 122 163 7 417 123 216 10 160 163 Mar....................................... 882 533 110 200 262 613 293 286 20 231 108 Apr....................................... 615 74 287 275 122 937 170 57 7 416 179 May...................................... 789 15 110 338 74 535 65 1,750 181 49 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 preceding 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

SEPTEMBER 1970 □ SECURITY ISSUES A 47 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 196 5 15,952 7,891 8,061 12,747 4,649 8,098 3,205 3,242 -37 196 6 19,799 7,541 12,258 15,629 4,542 11,088 4,169 3,000 1,169 196 7 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 196 8 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 196 9 28,841 10,813 18,027 19,523 5,767 13,755 9,897 4,505 4,272 1969— 1 7,133 3,456 3,677 4,949 1,272 3,676 2,363 2,183 I I 7,728 3,268 4,460 5,365 1,504 3,861 2,008 1,764 599 II I 6,507 1,980 4,526 4,499 1,382 3,117 2.763 598 1,410 I V 7,473 2,109 5,364 4,710 1,609 3,101 2.763 500 2,263 1970— 1 7,272 2,185 5,086 4,987 1,507 3,480 2,285 679 1,606 4 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & 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 -10 1966......................... 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 -90 1967......................... 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 1968......................... 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 1969......................... 3,747 69 1,075 1,558 1,165 301 4,464 1,353 1,834 241 1,687 866 1968—IV................. 667 -1,171 960 461 257 -71 1,310 152 269 50 491 -1 1969—1................... 1,458 -372 360 259 539 75 674 331 405 45 239 -337 II.................. 936 -386 433 445 175 49 1,445 235 312 78 560 178 Ill................. 1,087 343 101 274 354 136 898 320 566 31 329 420 IV................ 266 484 181 580 97 41 1,447 467 551 87 559 605 1970—1................... 1 ,084 463 -160 415 591 17 1 ,214 395 546 27 204 289 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and misc. companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- Note.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, 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 ti d o e n m s p­ s N al e e t s Total 2 po C si a t s i h on3 Other 1958............... 1,620 511 1,109 13,242 634 12,608 1969—July... 503 260 243 46,408 4,167 42,241 1959............... 2,280 786 1,494 15,818 860 14,958 Aug... 483 208 275 49,072 4,642 44,430 1960............... 2,097 842 1,255 17,026 973 16,053 Sept... 442 235 207 48,882 4,393 44,489 Oct.... 564 269 295 50,915 4,572 46,343 1961............... 2,951 1,160 1,791 22,789 980 21,809 Nov... 417 277 140 49,242 4,079 38,163 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 Dec... 522 301 221 48,291 3,846 44,445 1963............... 2,460 1,504 952 25,214 1,341 23,873 1970—Jan.... 523 303 220 44,945 3,959 40,986 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Feb... 407 249 158 48,202 4,209 43,993 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Mar... 451 289 162 47,915 4,046 43,869 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Apr... 371 306 65 42,785 3,909 38,876 May.. 304 300 4 39,824 4,042 35,782 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 June.. 364 197 167 38,459 4,396 34,230 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 July... 306 193 113 40,714 4,817 35,897 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 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 □ SEPTEMBER 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.......................................... 177,237 195,738201,399 225,740243,449 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.......................................... 112,341 122,094 123,429 140,879 151,416 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 aftfer 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 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 10,859 11,451 2,611 2,758 2,708 2,782 2,741 2,916 2,836 2,958 Profits before taxes................. 979 1,094 385 678 683 127 206 149 196 128 220 149 186 Profits after taxes................... 815 906 319 565 461 112 174 110 169 98 173 98 92 Dividends................................. 468 502 538 515 488 117 132 100 166 116 136 100 136 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

SEPTEMBER 1970 □ BUSINESS FINANCE A 49 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a f o x o f e r i 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 fi t i t e s s d ­ co c a n a t l s i l p o o u i n w t m a ­ l p ­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a r a f o l 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 n b o u d f t i i t e s s d ­ co c a n t a l i s l p o o u n i w t m a ­ l p ­ ances 1 ances 1 1962............... 55.4 24.2 31.2 15.2 16.0 30.1 1968—IV .. 91.3 41.7 49.6 24.1 25.5 47.4 1963............... 59.4 26.3 33.1 16.5 16.6 31.8 1964............... 66.8 28.3 38.4 17.8 20.6 33.9 1969—1___ 93.0 43.5 49.5 24.1 25.5 48.5 II.... 93.4 43.8 49.7 24.4 25.2 49.3 1965............... 77.8 31.3 46.5 19.8 26.7 36.4 III.. . 89.9 42.1 47.9 25.0 22.9 50.1 1966............... 84.2 34.3 49.9 20.8 29.1 39.5 IV... 88.5 41.4 47.1 25.2 21.9 51.0 1967................ 79.8 33.2 46.6 21.4 25.3 43.0 1968................ 88.7 40.6 48.2 23.3 24.9 46.5 1970—1 ... 82.6 38.0 44.6 25.2 19.4 52.0 1969................ 91.2 42.7 48.5 24.7 23.9 49.8 IIp... 82.3 38.0 44.3 25.1 19.2 53.0 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 . . 1 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 1.5.4 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—III....................... 208.7 491.5 51.9 12.6 4.8 229.4 162.1 30.8 282.7 6.3 196.8 15.1 64.6 IV........................ 212.4 506.3 55.1 13.7 5.1 235.6 164.6 32.2 293.9 6.4 205.2 16.8 65.4 1969—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 1970—1........................... 214.4 553.0 50.2 12.0 4.7 262.8 186.7 36.7 338.6 7.2 233.1 18.6 79.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Total 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 th er n C i o ca m ti m on u s ­ Other1 a ( r n S a n . t A u e) a . 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 19702r..................... 80.52 15.88 16.16 1.86 1.86 3.16 1.26 10.97 2.55 10.16 16.77 1968—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—1................... 17.47 3.59 3.56 .45 .42 .73 .28 2.15 .39 2.14 3.76 78.22 II................. 20.33 4.08 4.07 .47 .47 .80 .31 2.59 .69 2.59 4.26 80.22 Ill2 r............ 20.06 3.78 3.98 .44 .46 .80 .31 2.91 .79 6.58 81.05 IV2.............. 22.66 4.44 4.55 .49 .52 .71 .35 3.32 .68 7.60 82.24 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 □ SEPTEMBER 1970 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm Other 1 - to 4-family houses * 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 n c i 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 n i c 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 A e o r l l s d l ­ 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 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 i v o 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 26.5 196 4 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 196 5 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 196 6 347.4 280.8 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—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—1*... 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 II*.. 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 Ill* 389.8 313.5 21.1 55.1 27.2 9.6 17.5 362.6 247.0 209.7 37.3 115.6 94.1 21.5 92.0 270.6 IV*. 397.5 319.9 21.7 55.8 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—1*... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 II*. 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.5 123.4 101.0 22.4 96.6 286.3 Ill*, 418.7 335.7 24.9 58.1 29.2 10.1 19.1 389.5 263.4 222.5 40.9 126.0 103.1 22.9 98.5 291.0 IV*. 425.3 339.1 26.8 59.4 29.4 10.0 19.4 395.9 266.8 223.6 43.2 129.0 105.5 23.5 100.2 295.7 1970—1*. 429.5 29.8 399.7 268.7 130.8 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 holdings 2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar­ ven­ Total in- guar­ ven­ sured anteed tional sured anteed tional 1941................................. 4,906 3,292 1,048 566 4,812 3,884 900 28 1945................................. 4,772 3,395 856 521 4,208 3,387 797 24 1964................................. 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965................................. 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—11......................... 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 Ill........................ 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV......................... 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1*......................... 70,954 56,433 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

SEPTEMBER 1970 □ 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 a g n V u t A e a e r - ­ d Other i Farm Total Total in F s H u A re - d a g n V u t A e a e r - - d Other Farm 1945 ................................................ 976 6,637 5,860 1,394 4,466 766 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—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....................................... 564 541 27 6 508 23 72,527 66,836 11,675 5,638 49,523 5,691 Mar....................................... 576 546 24 12 510 30 72,616 66,943 11,642 5,636 49,665 5,673 Apr....................................... 524 493 31 4 458 31 72,793 67,121 11,621 5,609 49,891 5,672 May...................................... 521 502 39 9 454 19 72,982 67,320 11,606 5,583 50,131 5,662 June...................................... 549 522 25 5 492 27 73,165 67,498 11,569 5,556 50,373 5,667 1 Include mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value of ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end Note.—Institute of Life Insurance data. For loans acquired, the adjustments are more complete. Beginning 1970 monthly and year ago monthly figures may not add to annual totals; and for loans outstanding data are on a statement balance basis. MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) Period va A n d c ­ es R m e e p n a ts y­ M de e p m o b si e t r s s’ Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t 1 ­ t L e o rm ng 2 ­ Total i con­ pur­ Total 2 in­ guar- ven­ struc­ chase sured anteed tional tion 1945......................... 278 213 195 176 19 46 5,601 4,296 4,784 2,863 1,921 1,151 1945............... 1 ,913 181 1,358 5,376 1964......................... 5,565 5,025 5,325 2,846 2,479 1,199 1965......................... 5,007 4,335 5,997 3,074 2,923 1,043 1963............... 25,173 7,185 10,055 90,944 4,696 6,960 79,288 1966......................... 3,804 2,866 6,935 5,006 1,929 1,036 1964............... 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1965............... 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1967......................... 1,527 4,076 4,386 3,985 401 1,432 1966............... 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1968......................... 2,734 1,861 5,259 4,867 392 1,382 1969......................... 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 1968............... 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1969—June.............. 514 72 6,413 6,054 359 1,276 1969............... 21,832 4,756 11,244 140,209 7,910 7,653 124,646 July............. 759 118 7,053 6,564 489 927 Aug............. 630 139 7,544 6,872 672 847 1969—July... 1,974 421 1,091 137,107 7,522 7,468 122,117 Sept............. 451 55 7,940 7,273 667 891 Aug... 1,918 393 1,089 137,951 7,607 7,538 122,806 637 138 8,439 7,779 660 865 Sept... 1,728 377 936 138,618 7,694 7,570 123,354 Nov............. 552 189 8,802 7,946 856 938 Oct.... 1,698 365 862 139,226 7,770 7,600 123,865 Dec.............. 564 77 9,289 8,434 855 1 ,041 Nov.. . 1,330 286 652 139,676 7,822 7,616 124,238 Dec... 1,508 300 687 140,209 7,910 7,653 124,646 1970—Jan.............. 708 145 9,852 8,744 1,108 786 Feb.............. 384 299 9,937 8,717 1,220 801 1970—Jan.... 1,064 220 530 140,345 7,937 7,669 124,739 Mar............. 136 388 9,745 8,501 1,243 985 Feb.. . 1,042 223 502 140,568 8,000 7,680 124,888 393 278 9,860 7,721 2,138 1,108 Mar... 1,262 284 585 140,766 8,092 7,677 124,997 May............ 240 92 10,008 7,031 2,997 1,188 Apr... 1,400 325 627 141,252 8,184 7,712 125,356 Junep.......... 299 71 10,236 7,002 3,234 1,331 Mayr. 1,586 373 741 141,975 8,325 7,761 125,889 July............. 243 106 10,373 1,193 Juner. 2,086 398 1,017 143,103 8,579 7,862 126,662 July*5.. 2,069 392 1,070 144,198 8,826 7,963 127,409 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 Includes loans for repairs, additions and alterations, refinancing, etc., 1 year but not more than 10 years. not shown separately. 2 Beginning with 1958, includes shares pledged against mortgage loans; Note.—Federal Home Loan Bank Board data. beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note,—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ SEPTEMBER 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) All residential Multifamily1 G uii o d v e e r r w nm rit e t n en t- Con­ E pe n r d i o o d f Total F i i n c 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 FH in A ­ - g V u A ar - ­ ti v o e n n a ­ l tutions tutions sured anteed 1 1 1 9 94 4 1 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 24 4 . . 3 2 1 1 4 5 . . 9 7 9 8 . . 4 6 5 5 . . 9 7 3 3 . .5 6 2 2 . . 2 2 1 19 9 5 63 4. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 1 1 8 8 2 . . 6 2 6 4 5 . . 3 9 3 4 5 . . 1 0 30. . 9 2 1 1 1 4 6 . . 3 3 1963................ 211.2 176.7 34.5 29.0 20.7 8.3 1964.................................. 197.6 69.2 38.3 30.9 128.3 1964................ 231.1 195.4 35.7 33.6 25.1 8.5 1965.................................. 212.9 73.1 42.0 31.1 139.8 1965................ 250.1 213.2 36.9 37.2 29.0 8.2 1966.................................. 223.6 76.1 44.8 31.3 147.6 1966................ 264.0 223.7 40.3 40.3 31.5 8.8 1967P................................ 236.1 79.9 47.4 32.5 156.1 \961p.............. 280.0 236.6 43.4 43.9 34.7 9.2 1968P................................ 251.2 83.8 50.6 33.2 167.4 1968p.............. 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—IIIp. . . 280.0 236.6 43.4 43.9 34.7 9.2 1967—IIP....................... 232.0 78.3 46.6 31.7 153.7 1968—I?........ 283.7 239.0 44.7 44.6 35.3 9.3 IVp....................... 236.1 79.9 47.4 32.5 156.1 IIP.. .. 288.5 242.7 45.8 45.3 35.9 9.4 IllP. . . 293.3 246.4 46.9 46.2 36.7 9.5 1968—Ip.......................... 239.1 81.0 48.1 32.9 158.1 IVP.. .. 298.6 250.8 47.8 47.3 37.7 9.6 IIP......................... 243.2 82.1 48.7 33.4 161.1 HIP....................... 247.0 83.2 49.6 33.6 163.8 1969—I?......... 303.0 254.4 48.6 48.3 38.4 9.9 IVp....................... 251.2 83.8 50.6 33.2 167.4 IIP.... 309.2 259.3 49.9 49.4 39.3 10.1 IIP. . . 314.1 262.7 51.4 50.6 40.2 10.4 1969—Ip.......................... 254.8 85.3 51.4 33.9 169.5 IVp.... 319.0 265.0 54.0 52.1 41.3 10.8 I II I P Ip .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 5 63 9 . . 5 5 8 8 7 8 . . 1 8 5 5 2 3 . . 2 4 3 3 4 5 . . 9 4 1 17 7 2 4 . . 3 6 1970—ip 321.8 53.1 IVp....................... 266.8 90.1 54.5 35.6 176.9 1970—Ip.......................... 268.7 91.6 55.6 36.0 177.2 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 s e o ) 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 an u d rc 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 o e m w es h is o E t m i x n ­ e g s jects 1 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 n s r u e s r ­ i e n 90 days 30 days 60 days or more 1945............. 665 257 217 20 171 192 1964............. 8,130 1,608 4,965 895 663 2,846 1,023 1,821 196 3 3.30 2.32 .60 .38 .34 1965............. 8,689 1,705 5,760 591 634 2,652 876 1,774 196 4 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 2,259 196 5 3.29 2.40 .55 .34 .40 1968............. 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 196 6 3.40 2.54 .54 .32 .36 1969............. 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 196 7 3.47 2.66 .54 .27 .32 196 8 3.17 2.43 .51 .23 .26 1969—June. 787 121 475 134 58 308 99 209 196 9 3.22 2.43 .52 .27 .27 July.. 869 140 518 127 85 356 122 234 Aug.. 791 130 501 92 68 385 126 259 1966—III. 3.09 2.25 .52 .32 .36 Sept.. 872 148 566 95 63 364 134 230 IV. 3.40 2.54 .54 .32 .36 Oct... 911 160 553 140 59 397 148 249 Nov.. 705 131 430 90 55 328 125 203 1967—I... 3.04 2.17 .56 .31 .38 Dec.. 793 148 448 146 50 317 134 183 11.. 2.85 2.14 .45 .26 .34 III. 3.15 2.36 .52 .27 .31 1970—Jan... 807 178 433 139 58 313 139 174 IV. 3.47 2.66 .54 .27 .32 Feb.. 643 141 361 109 32 235 107 128 Mar.. 780 176 406 157 42 257 114 143 1968—1... 2.84 2.11 .49 .24 .32 Apr.. 864 176 385 257 45 232 97 135 11.. 2.89 2.23 .44 .22 .28 May 176 351 237 98 139 III. 2.93 2.23 .48 .22 .26 June 218 478 262 99 163 IV. 3.17 2.43 .51 .23 .26 1969—I.. . 2.77 2.04 .49 .24 .26 1 Monthly figures do not reflect mortgage amendments included in annual II. . 2.68 2.06 .41 .21 .25 totals. III. 2.91 2.18 .47 .26 .25 2 Not ordinarily secured by mortgages. IV. 3.22 2.43 .52 .27 .27 3 Includes a small amount of alteration and repair loans, not shown separ­ ately; only such loans in amounts of more than $1,000 need be secured. 1970—I.. . 2.96 2.14 .52 .30 .31 11.. 2.83 2.10 .45 .28 .31 Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal Note.—Mortgage Bankers Association of America data from repayments on previously insured or guaranteed loans. For VA-guaranteed reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ loans, amounts by type are derived from data on number and average ventional mortgages held by more than 400 respondents, including amount of loans closed. mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 periiod) End of period) period period Total F su H in re A ­ d - a g n V 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 n V 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 ­ 1966............. 2,667 2,062 604 620 371 491 1966............. 4,396 3,345 1,051 2,081 1,920 214 1967............. 3,348 2,756 592 860 1 045 1,171 1967............. 5,522 4,048 1,474 1,400 12 1,736 501 1968............. 4,220 3,569 651 1,089 1 867 1,266 1968............. 7,167 5,121 2,046 1,944 2,697 1,287 1969............. 4,820 4,220 600 827 615 1,130 1969............. 10,950 7,680 3,270 4,121 6,630 3,539 1969-July... 4,493 3,871 622 68 55 1,304 1969-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 Apr... 4,965 4,381 584 44 48 970 Apr... 12,949 9,069 3,880 485 592 4,152 May.. 5,006 4,426 580 62 92 925 May.. 13,287 9,324 3,962 374 817 4,510 June.. 5,033 4,458 575 58 191 992 June.. 13,658 9,610 4,047 434 712 4,709 July... 5,070 4,499 571 55 172 966 July... 14,084 9,936 4,148 470 532 4,725 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- to 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 (In per cent) Primary market Secondary Implicit yield, by (conventional loans) market Mortgage amounts commitment period (in months) FHA series FHLBB series Yield Date Accepted Period (effective rate) on FHA- of insured auction New Existing h N om ew es h lo n o a e m n w s e 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-July............. 7.91 7.94 8.10 8.36 1970—May 4.. 443.3 195.5 43.5 121.1 38.9 9.01 9.04 9.10 Aug............. 8.00 8.05 8.20 8.36 11.. 269.2 102.2 26.0 63.2 13.0 9.04 9.07 9.13 Sept............. 8.05 8.08 8.25 8.40 18.. 300.2 136.3 32.3 86.4 17.5 9.11 9.13 9.18 Oct.............. 8.13 8.13 8.30 8.48 25.. 289.5 145.2 38.9 86.7 19.7 9.15 9.18 9.22 Nov............. 8.13 8.15 8.35 8.48 Dec.............. 8.25 8.24 8.35 8.62 June 1.. 224.2 113.8 31.1 71.4 11.3 9.20 9.24 9.27 15.. 249.7 127.9 34.2 86.7 7.0 9.27 9.30 9.31 1970—Jan............... 8.34 8.29 8.55 29.. 156.3 98.9 30.6 56.5 11.8 9.32 9.33 9.34 Feb.............. 8.41 8.41 8.55 9.29 Mar............. 8.47 8.43 8.55 9.20 July 13.. 286.2 113.3 24.9 72.9 15.3 9.20 9.21 9.22 Apr.............. 8.41 8.34 8.55 9.10 27.. 323.8 150.4 37.0 91.0 22.3 9.10 9.12 9.12 Mayr.......... 8.45 8.34 8.55 9.11 Juner.......... 8.48 8.36 8.55 9.16 Aug. 3.. 441.3 180.1 41.4 91.0 47.8 9.03 9.03 9.12 July*........... 8.48 8.36 8.60 9.11 24.. 575.0 215.1 48.9 124.4 41.9 9.03 9.03 9.04 Aug............. 8.60 9.07 Note.—Implicit secondary market yields are gross—before deduction of 50- Note.—Annual data are averages of monthly figures. The basis-point fee paid for mortgage servicing. They reflect the average accepted bid FHA data are based on opinion reports submitted by field offices price for Govt.-underwritten mortgages after adjustment by Federal Reserve on prevailing local conditions as of the first of the succeeding to allow for FNMA commitment fees and FNMA stock purchase and holding month. Yields on FHA-insured mortgages are derived from requirements, assuming a prepayment period of 15 years for 30-year loans. Com­ weighted averages of private secondary market prices for Sec. mitments for 12-18 months are for new homes only. 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of IS years. Gaps in the data are due to periods of adjustment to changes in maximum per­ missible contract interest rates. The FHA series on average 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 □ SEPTEMBER 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 u h d e m e s r r er e a r n l R n o d i e a z p n m a a s t o i i o r 1 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 e s 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—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 Oct.................................. 118,515 95,850 36,599 25,855 4,084 29,312 22,665 9,025 7,085 6,555 Nov................................. 119,378 96,478 36,650 26,223 4,076 29,529 22,900 9,000 7,238 6,662 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 Apr................................ 120,402 97,104 36,264 26,850 3,960 30,030 23,298 9,102 6,900 7,296 May............................... 121,346 97,706 36,455 27,055 4,003 30,193 23,640 9,159 7,273 7,208 June............................... 122,542 98,699 36,809 27,303 4,040 30,547 23,843 9,239 7,473 7,131 July................................ 123,092 99,302 36,918 27,538 4,081 30,765 23,790 9,254 7,509 7,027 1 Holdings of financial institutions; holdings of retail outlets are in- loans. For back figures and description of the data, see “Consumer Credit,” eluded in “other consumer goods paper.” Section 16 (New) of Supplement to Banking and Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- an<* ^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 ­ e r 1 Other1 Total d m A ea o u l b e to i 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 I960............................................ 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—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 Apr................................. 97,104 84,802 40,245 19,672 11,644 9,652 3,589 12,302 332 11,970 May............................... 97,706 85,335 40,515 19,760 11,778 9,631 3,651 12,371 333 12,038 June................................ 98,699 86,311 40,979 19,936 12,030 9,703 3,663 12,388 336 12,052 July................................ 99,302 86,876 41,703 19,587 12,141 9,739 3,706 12,426 337 12,089 \ 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

SEPTEMBER 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 O co th n e ­ r m an o d d­ s P o e n r a ­ l Auto­ O co th n e ­ r R a e n p d air 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 1941 , 1,797 1,363 167 201 66 1945........................... 745 66 143 114 110 312 1945. 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 1965. 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—July............... 39,248 12,814 7,501 6,709 2,780 9,444 1969--July....................... 19,127 10,538 5,088 70 3,431 Aug............... 39,532 12,859 7,513 6,818 2,787 9,555 19,265 10,570 5,139 69 3,487 Sept............... 39,793 12,864 7,543 6,929 2,808 9,649 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 Nov............... 40,047 12,883 7,618 7,100 2,779 9,667 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- 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 19,586 10,575 5,297 64 3,650 Apr................ 40,245 12,550 7,598 7,568 2,685 9,844 19,672 10,647 5,288 63 3,674 May.............. 40,515 12,600 7,635 7,667 2,705 9,908 19,760 10,689 5,317 62 3,692 June.............. 40,979 12,680 7,722 7,828 2,731 10,018 19,936 10,770 5,372 62 3,732 July............... 41,703 13,002 7,759 8,078 2,755 10,109 July....................... 19,587 10,467 5,307 61 3,752 11 See Note to first table on preceding page. See Note to first table on preceding 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—July....................... 23,755 4,893 2,007 1,189 15,666 196 7 21,206 7,340 1,088 5,939 1,029 5,810 Aug....................... 24,113 4,967 2,024 1,207 15,915 196 8 23,301 7,975 1,163 6,450 1,305 6,408 Sept....................... 24,287 5,021 2,032 1,219 16,015 196 9 24.300 7.900 1,196 6.650 1.584 6.970 Oct........................ 24,374 5,057 2.042 1,219 16,056 Nov....................... 24,586 5,085 2,036 1,231 16,234 1969—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 Apr....................... 24,885 5,137 2,024 1,212 16,512 May..................... 25,060 5,198 2,033 1,236 16,593 1970—Jan.. .. 23,672 7,887 1.205 5,932 1,607 7,041 June..................... 25,396 5,301 2,051 1,247 16,797 Feb.... 23,185 7,857 1,217 5,210 1,579 7,322 July....................... 25,586 5,353 2,064 1,265 16,904 Mar.... 23,036 7,843 1,211 5,062 1,583 7.337 Apr__ 23,298 7,892 1,210 5,289 1,611 7,296 May.. . 23,640 7,925 1.234 5,633 1,640 7,208 un N io o n t s, e .— ind In u s s t t i r t i u a t l i o l n o s a n re p c r o e m se p n a t n e i d e s a , r e m c u o t n u s a u l m s e a r v f in in g a s n c b e a n co k m s, p s a a n v ie in s g , s c re a d n i d t J J u u l n y e . . . . . . 2 2 3 3 , , 7 8 9 4 0 3 8 8 . . 0 0 0 0 5 5 1 1 , . 2 2 4 3 9 4 5 5 , , 7 7 6 2 5 7 1 1 , , 7 7 8 0 2 8 7 7, , 1 0 3 2 1 7 loan assns., and other lending institutions holding consumer instalment credit. See also Note to first table on preceding 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 preceding page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT a SEPTEMBER 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.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 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—July................................ 8,521 8,920 2,582 2,828 2,777 2„778 185 214 2,977 3,100 Aug................................. 8,680 8,604 2,634 2,593 2,819 2,764 177 206 3,050 3,041 Sept................................ 8,669 8,485 2,794 2,566 2,740 2.794 180 194 2,955 2,931 Oct.................................. 8,661 8,797 2,808 2,939 2,707 2,805 175 183 2,971 2,870 Nov................................ 8,632 8,173 2,683 2,433 2,841 2,817 164 160 2,944 2,763 Dec................................. 8,344 10,096 2,472 2,479 2,838 4,004 169 149 2,865 3,464 1970—Jan.................................. 8,521 7,490 2,479 2,130 2,925 2,663 160 118 2,957 2,579 Feb................................. 8,625 7,106 2,536 2,214 3,018 2,275 179 137 2,892 2,480 Mar................................ 8,392 8,243 2,496 2,584 2,922 2,725 165 152 2,809 2,782 Apr................................. 8,491 8,773 2,571 2,776 2,843 2,792 183 185 2,894 3,020 May............................... 9,004 8,857 2,595 2,696 3,183 3,008 180 213 3,046 2,940 June............................... 8,683 9,534 2,587 3,023 2,925 3,019 189 220 2,982 3,272 July................................ 9,065 9,497 2,685 2,952 3,124 3,141 192 220 3,064 3,184 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—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 Apr................................. 8,195 8,331 2,527 2,600 2,729 2,756 173 176 2,766 2,799 May............................... 8,589 8,255 2,600 2,505 2,888 2,803 174 170 2,927 2,777 June............................... 8,242 8,541 2,573 2,669 2,750 2,771 174 183 2,745 2,918 July................................ 8,622 8,894 2,752 2,843 2,874 2,906 170 179 2,826 2,966 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 1969—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 1970—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 Apr................................. 296 442 44 176 114 36 10 9 128 221 May............................... 415 602 -5 191 295 205 6 43 119 163 June............................... 441 993 14 354 175 248 15 37 237 354 July................................ 443 603 -67 109 250 235 22 41 238 218 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

SEPTEMBER 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.i N.S.A. S.A.i N.S.A. S.A.i 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—July. 8.521 8,920 3,041 3,323 1.400 1,507 2,439 2,539 1,641 1,551 Aug.. 8,680 8,604 3,148 3,162 1,431 1,401 2,470 2,463 1,631 1,578 Sept.. 8,669 8,485 3,292 3,203 1,440 1,396 2,332 2,280 1,605 1,606 Oct.. 8,661 8,797 3,298 3,346 1,518 1,603 2,341 2,267 1,504 1,581 Nov.. 8,632 8,173 3,213 2,845 1,490 1,381 2,291 2,217 1.638 1,730 Dec.. 8,344 10,096 3,179 3,302 1,331 1,568 2,213 2,670 1,621 2,556 1970—Jan.. 8.521 7,490 3,047 2,751 1.401 1,201 2,339 1,979 1,734 1,559 Feb.. 8,625 7,106 3,167 2,735 1,386 1,172 2,322 1,991 1,750 1,208 Mar.. 8,392 8,243 3,193 3,206 1,344 1,315 2,217 2,220 1.638 1,502 Apr.. 8,491 8,773 3,208 3,450 1,417 1,475 2,283 2,335 1,583 1,513 May. 9,004 8,857 3,291 3,341 1,468 1,424 2,423 2,388 1,822 1,704 June. 8,683 9,534 3,262 3,643 1,457 1,643 2,392 2,676 1,572 1,572 July. 9,065 9,497 3,382 3,697 1,470 1,571 2,485 2,578 1,728 1,651 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—July. 7,899 8,174 2,859 2,991 1,330 1,341 2,181 2,295 1.529 1,547 Aug.. 8,080 7,705 2,958 2,878 1,386 1,263 2,228 2.105 1,508 1,459 Sept.. 7,971 7,861 2,919 2,942 1,355 1,301 2,133 2.106 1,564 1,512 Oct.. 7,992 8,303 2,986 3,133 1,324 1,394 2,148 2,180 1,534 1,596 Nov.. 8,012 7,545 3,020 2,804 1,346 1,282 2,117 2,005 1.529 1,454 Dec.. 7,929 8,405 2,977 3,044 1,309 1,438 2,094 2,377 ! ,549 1,546 1970—Jan.. 8,141 8,257 2,962 2,912 1.320 1,296 2.197 2,174 1,662 1,875 Feb.. 8,207 7,616 3,101 2,889 1.321 1,223 2,146 1,924 1,639 1,580 Mar.. 8.194 8,473 3,119 3,240 1,300 1,381 2,154 2,205 1,621 1,647 Apr.. 8.195 8,331 3,081 3,161 1,334 1,389 2.198 2,216 1,582 1,565 May. 8,589 8,255 3,170 3,071 1,408 1,336 2,339 2,213 1,672 1,635 June. 8,242 8,541 3,041 3,179 1,434 1,467 2,201 2,340 1,566 1,555 July.. 8,622 8,894 3,264 3,388 1,479 1,505 2,285 2,388 1,594 1,613 Net change in credit outstanding 2 196 4 7,200 3,065 975 2,033 1,127 196 5 8,629 3,865 1,674 2,093 997 196 6 6,215 2,357 1,418 1,416 1,024 196 7 3,387 1,381 141 1,244 621 196 8 8,964 4,252 1,381 2,334 997 196 9 8,279 3,353 1,579 2,593 754 1969—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 Apr.. 296 442 127 289 83 86 85 119 1 -52 May. 415 602 121 270 60 88 84 175 150 69 June. 441 993 221 464 23 176 191 336 6 17 July. , 443 603 533 724 -424 -349 200 190 134 38 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 preceding 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. □ SEPTEMBER 1970 MARKET GROUPINGS (1957-59=100) 19 p 5 r 7 o - ­ 59 1969 1969 1970 Grouping p ti o o r n ­ a a v g e e r P - July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July Total index...................................... 100.00 172.8 174.6 174.3 173.9 173.1 171.4 171.1 170.4 170.5 171.1 170.2 169.0 168.8 169.2 Final products, total............................ 47.35 170.8 172 172.7 172.2 170.9 168.4 168.5 168.5 169.9 169.7 168.5 167.7 167.2 167.2 Consumer goods............................. 32.31 162.5 164.4 164.2 162.8 161.2 160.5 160.7 161.5 162.4 162.0 163.2 163.2 162.9 163.7 Equipment, including defense. . . 15.04 188.6 190.8 190.3 192.4 191.9 185.6 185.2 183.6 186.2 186.3 179.9 177.3 176.4 174.7 Materials.............................................. 52.65 174.6 176.5 175.9 176.0 175.4 174.6 173.9 172.5 171.5 171.7 171.9 170.4 170.5 171.1 Consumer goods Automotive products........................... 3.21 173.2 184.6 179.5 176.6 172.8 168.0 160.9 155.3 154. 160.0 158.4 166.4 170.3 169.9 Autos..................................................... 1.82 162.8 178.7 178.4 169.9 164.0 153.8 141.6 132.9 127.6 138.4 136.1 156.0 163.0 163.8 Auto parts and allied products.... 1.39 186.8 192.4 181.0 185.4 184.4 186.7 186.2 184.9 190.7 188.5 187.8 180.1 179.9 178.0 Home goods and apparel................... 10.00 159.3 160.8 159.3 156.7 156.2 150.9 151.0 152.3 153.6 154.5 155.0 153.0 153.1 154.0 Home goods........................................ 4.59 184.0 184.4 184.5 181.2 179.5 166.7 166.8 169.6 174.8 179.4 180.0 178.4 177.7 179.9 Appliances, TV, and radios......... 1.81 180.2 181.8 181.9 176.5 175.2 142.2 140.1 149.0 168.6 178.1 178.9 182.6 178.8 187.0 Appliances................................... 1.33 192.4 195.6 195.0 188.2 187.2 147.8 151.0 162.5 186.5 199.1 206.7 213.9 201.4 211.2 TV and home radios................. .47 145.6 143.0 144.9 143.6 141.3 126.2 109.6 111.0 118.2 119.1 100.3 94.2 115.2 118.8 Furniture and rugs.................... 1.26 180.3 180.0 179.7 177.9 175.7 176.0 175.0 173.8 169.2 170.3 170.6 165.5 164.9 163.3 Miscellaneous home goods.......... 1.52 191.5 191.1 191.6 189.4 187.8 188.2 191.7 190.5 186.7 188.4 189.0 184.1 187.0 185.3 Apparel, knit goods, and shoes.... 5.41 138.5 140.9 138.0 135.9 136.4 137.5 137.7 137.6 135.7 133.4 133.8 131.4 132.2 Consumer staples................................ 19.10 162.4 162.9 164.1 163.7 161.8 164.2 165.7 167.3 168.2 166.2 168.4 168.0 166.7 167.7 Processed foods.................................. 8.43 136.6 135.3 138.8 137.9 132.3 136.5 137.0 138.7 139.5 139.6 140.2 141.1 137.9 139.0 Beverages and tobacco..................... 2.43 146.8 147.8 152.3 152.6 148.9 145.0 149.6 151.7 154.6 146.1 150.1 142.2 142.6 Drugs, soap, and toiletries............... 2.97 209.0 211.9 207.2 208.6 210.4 213.2 217.0 217.6 217.9 216.5 218.6 219.6 215.0 215.4 Newspapers, magazines, and books 1.47 147.1 147.5 147.6 149.8 147.1 148.9 149.7 147.7 147.6 146.1 146.0 146.9 147.6 142.4 Consumer fuel and lighting............. 3.67 199.6 201.6 201.1 198.6 203.9 206.0 206.0 210.0 210.3 207.2 212.6 212.3 216.4 Fuel oil and gasoline..................... 1.20 144.6 146.1 144.4 146.1 150.9 152.7 148.4 150.3 146.5 150.3 152.1 149.7 153.0 152.1 Residential utilities........................ 2.46 226.3 228.7 228.7 224.2 229.8 232.0 234.1 239.1 241.5 235.0 242.1 242.8 247.3 Electricity.................................... 1.72 249.7 252.6 252.2 245.3 252.9 255.6 258.2 264.7 267.5 257.7 267.5 268.1 273.9 Gas................................................ .74 Equipment Business equipment.............................. 11.63 195.6 196.9 197.0 200.4 200.9 194.4 193.8 192. 196.9 198.0 193.0 188.7 188.0 186.8 Industrial equipment......................... 6.85 179.1 181.2 180.3 183.9 182.9 174.4 176.3 175.0 184.9 186.8 182.1 175.8 175.2 173.6 Commercial equipment..................... 2.42 220.0 220.5 221.3 222.9 224.9 223.3 223.6 223.0 222.4 225.0 223.4 220.4 220.4 220.1 Freight and passenger equipment. . 1.76 246.7 250.5 249.7 251.9 254.5 252.8 240.9 239.5 231.8 226.1 215.4 216.8 213.9 213.3 Farm equipment................................. .61 136.8 124.4 136.0 146.8 153.1 136.5 135.4 138.4 130.3 134.6 130.4 127.4 128.6 Defense equipment.............................. 3.41 Materials Durable goods materials................ 26.73 165.5 167.0 167.3 166.6 165. 163.5 161.8 160.1 157.9 159.1 159.6 157.5 157.5 157.6 Consumer durable............................. 3.43 163.9 163.0 169.5 17*1.7 166.4 158.5 150.9 148.7 142.3 143.0 143.6 146.0 155.4 155.4 Equipment........................................... 7.84 191.9 193.2 195.1 197.2 194.8 190.7 189.8 188.6 188.6 189.8 183.8 177.5 176.6 177.5 Construction........................................ 9.17 152.4 150.0 149.9 149.8 149.6 150.2 150.4 151.2 150.7 148.8 148.8 146.8 145.0 145.2 Metal materials n.e.c......................... 6.29 152.8 156.2 153.5 149.3 153.3 156.1 155.4 149.4 150.2 152.4 147.7 146.8 149.1 153.5 Nondurable materials......................... 25.92 183.9 186.4 184.7 185.5 185.3 186.0 186.5 185.3 185.5 184.7 184.6 183.8 183.9 185.1 Business supplies................................ 9.11 166.6 167.1 167.4 167.0 167.4 166.9 168.5 167.5 166.2 164.8 164.5 162.1 162.5 165.2 Containers........................................ 3.03 168.6 165.5 166.7 167.8 169.9 165.6 174.0 173.7 169.3 165.0 166.2 168.2 165.6 164.1 General business supplies............. 6.07 165.5 167.9 167.8 166.6 166.1 167.6 165.8 164.4 164.7 164.7 163.7 159.1 161.0 165.7 Nondurable materials n.e.c.............. 7.40 237.8 241.6 238.2 240.2 239.0 242.0 240.0 239.5 239.0 237.2 236.1 233.1 232.8 234.0 Business fuel and power................... 9.41 158.2 161.6 159.4 159.8 160.4 160.4 161.7 159.8 162.0 162.7 163.8 166.0 166.2 165.9 Mineral fuels................................... 6.07 134.9 139.7 136.5 137.7 135.7 136.5 137.7 135.3 137.1 137.4 139.1 142.0 141.8 141.1 Nonresidential utilities.................. 2.86 216.7 216.7 217.3 221.1 222.8 220.9 222.5 222.4 225.0 226.3 226.5 228.1 228.6 Electricity.................................... 2.32 220.6 220.5 221.1 225.8 227.8 225.4 227.3 227.1 230.2 231.8 232.0 233.8 234.3 General industrial.................. 1.03 216.1 216.7 219.2 221.4 224.7 218.4 221.1 216.5 218.1 219.4 220.6 221.8 223.9 Commercial and other.......... 1.21 236.1 235.6 234.7 241.7 242.7 243.4 244.8 248.5 253.1 254.8 254.2 256.7 255.9 Gas................................................ .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 184.5 182.4 179.3 176.8 167.2 164.4 163.7 166.6 171.4 171.1 173.5 174.7 175.8 Apparel and staples................. 24.51 157.1 158.1 158.4 157.6 156.2 158.3 159.5 160.8 161.0 159.0 160.7 159.9 159.1 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 a INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1937-59 = 100) Grouping 19 p p 5 r o 7 o r - ­ ­ 59 a a 1 v g 9 e e 6 * r 9 ­ 1969 1970 tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr June' July Total index. 100.00 172.8 174.6 174.3 173.9 173.1 171.4 171.1 170.4 170.5 171.1 170.2 169.0 168.8 169.2 Manufacturing, total., 86.45 173.9 175.6 175.4 175.2 173.9 171. 171.3 170.2 170.3 170.8 170.0 168.1 167.7 168.4 Durable................... 48.07 176.5 178.7 178.8 178.7 177.3 172.1 171.1 169 169.6 171.0 168.4 167.6 167.3 167.7 Nondurable............ 38.38 170.6 171.8 171.3 170.9 169.5 171.5 171.5 171.0 171.3 170.6 171.9 168.7 168.3 169.3 Mining......................... 8.23 130.2 133.2 131.2 131.6 130.2 132.6 134.4 131.7 134.2 135.1 133.9 134.8 135.1 134.5 Utilities........................ 5.32 221.2 222.2 222.6 222.5 226.0 226.0 227.9 230.1 232.7 230.3 233.8 234.9 237.3 238.2 Durable manufactures Primary and fabricated metals......... 12.32 162.5 164.1 164.1 162.3 163.1 162.9 161.1 159.2 156.5 157. 154.7 155.2 155.2 157.7 Primary metals.................................... 6.95 149.1 152.4 151.3 149.3 150.4 150.3 147.7 143.1 139.2 141.9 138.9 142.6 142.0 146.2 Iron and steel.................................. 5.45 140.3 145.3 141.1 141.4 141.5 142.7 138.8 135.2 129.8 134.4 133.0 136.7 137.5 137.6 Nonferrous metals and products. 1.50 181.1 181.8 177.9 178.6 178.7 183.1 181.1 174.8 177.3 183.6 175.4 174.4 169.8 173.9 Fabricated metal products............... 5.37 179.8 179.1 180.6 179.1 179.4 179.2 178.4 180.0 178.9 178.3 175 171.4 172.3 172.5 Structural metal parts................... 2.86 173.3 170.8 171.5 171.5 172.5 174.5 177.1 175.4 174.6 174.4 170.2 164.2 164.4 162.8 Machinery and related products 27.98 188.4 192.3 192.0 192.7 190.0 181 180.3 178.8 180.0 182.2 178.6 177.6 178.1 178.1 Machinery............................................ 14.80 195.7 198.1 199.4 201.2 199.0 187.4 188.7 189.7 195.8 199.1 194.9 191.0 190.6 191.4 Nonelectrical machinery............... 8.43 194.6 196.0 195.5 199.8 200.3 194.9 196.5 195 195.8 196.6 191.7 187.1 185 185.5 Electrical machinery...................... 6.37 197.2 200.8 204.5 202.9 197.3 177.5 178 181.5 195.9 202.5 199.1 196 197.7 199.2 Transportation equipment............... 10.19 174.6 181.1 179.1 178.8 175.7 168 163.9 159.6 154.3 156.0 153.1 157.3 159.9 159.6 Motor vehicles and parts............. 4.68 166.9 174.2 174.1 170.5 167.9 159.9 152 146.8 142.1 148.9 148.0 158.5 164.4 165.4 Aircraft and other equipment.. . 5.26 177.8 183.4 180.3 182.6 179.6 171.9 170.7 166.7 161.4 159.1 154.1 153.0 153.3 151.9 Instruments and related products.. 1.71 194.4 194.7 194.9 195.4 193.9 196.0 197.4 194.8 194.0 193.6 195.4 191.3 187.9 186.8 Ordnance and accessories................. 1.28 Clay, glass, and lumber............... 4.72 142.5 138.3 140.2 140.6 140.7 140.6 139.9 141.1 141.2 137.5 140.3 139.2 133. 132.7 Clay, glass, and stone products. 2.99 156.0 152.7 155.3 157.7 156.3 155.9 157.4 154.5 155.0 151.7 154.6 152.6 149.3 148.2 Lumber and products................. 1.73 119.1 113.4 114.1 111.0 113 114.1 109.7 118.0 117.5 113.1 115.5 116.1 107.1 Furniture and miscellaneous.. 3.05 176.7 176.3 176.2 175.4 174.7 175.1 175.3 175.9 174.0 174.2 173.5 169.1 168.3 167.1 Furniture and fixtures............ 1.54 186.9 185.0 186.5 185.3 184.0 183.7 183.3 183.4 179.4 180.4 179.5 174.4 173.8 171.8 Miscellaneous manufactures. 1.51 166.4 167.4 165.8 165.3 165.3 166.4 167 168.2 168.4 167.8 167.4 163 162.6 162.4 Nondurable manufactures Textiles, apparel, and leather. 7.60 144.2 145.4 143.3 141.1 142.0 142.9 141.5 141.3 138, 137.5 138.9 136.7 136.0 135.3 Textile mill products............... 2.90 154.2 157.0 153.0 151.6 152.1 151.9 150.3 152.9 151.3 150.3 151.3 147.8 146.9 146.5 Apparel products..................... 3.59 149.2 150.7 148.8 146.1 146.5 148.0 147.9 145.8 141.7 140.1 140.8 137.7 138.6 Leather and products............. 1.11 101.9 98.4 100.0 97.7 101.1 102.7 98.0 96.9 96.9 95.9 100.2 104.5 99.1 Paper and printing.......... 8.17 164.4 165.9 166.3 165. 165.3 166.1 166. 164.6 164.6 164.4 165.0 163.0 161.6 161.4 Paper and products____ 3.43 175.6 176.4 177.5 177.5 177.1 175.9 178.0 173.8 174.8 174.9 176.3 174.5 170.5 171.0 Printing and publishing. 4.74 156.3 158.3 158.2 157.3 156.9 159.1 158.6 157.9 157.3 156.9 156.9 154.8 155.2 154.4 Newspapers.................. 1.53 142.7 145.6 144.4 143.3 143.0 154.1 142.0 141.7 142.1 137.9 139.3 136.9 137.5 140.0 Chemicals, petroleum, and rubber. 11.54 222.6 225.2 222.4 223.3 222.7 225.3 224. 222.1 224.1 224.7 227.0 220.2 222.4 224.7 Chemicals and products............... 7.58 239.0 243.1 238.1 240.2 238.3 240.8 241.7 240.2 242.6 242.3 244.4 241.4 241.3 241.7 Industrial chemicals.................... 3.84 283.0 288.6 281.5 286.2 281.2 283.9 283.8 281.9 284.3 284.8 289.2 281.3 284.0 Petroleum products......................... 1.97 143.8 143.5 144.5 146.2 146.7 150.9 149.5 143.3 143.0 146.6 147.9 146.5 147.8 146.8 Rubber and plastics products........ 1.99 238.7 238.3 239.9 240.0 238.6 240.2 234.8 231.4 234.0 235.3 239.4 212.2 224.3 Foods, beverages, and tobacco. 11.07 139.0 138.4 141.0 140.4 136.2 139.2 140.1 142.7 143.5 141.3 142.3 141.3 139.2 140.7 Foods and beverages................. 10.25 140.7 139.9 143.1 142.2 138.0 141.0 142.1 144.7 145.2 143.3 143.7 143.1 140.6 142.4 Food manufactures............... 8.64 136.7 135.8 137.8 137.0 132.6 137.5 137.4 140.2 140.4 140.0 140.1 141.0 138.2 139.8 Beverages................................. 1.61 161.9 161.7 171.3 169.9 166.7 159.7 167.2 168.9 170.7 161.0 162.8 154.6 153.7 Tobacco products...................... .82 117.3 120.3 114.8 118.6 113.8 116.2 115.1 117.8 122.8 116.8 125.1 117.8 120.7 Mining Coal, oilt and gas............... 6.80 127.4 131.7 128.8 129.9 128.1 129.1 130.3 128.3 130.2 130.5 129.8 132.3 132.7 131.9 Coal...................................... 1.16 117.7 130.0 122.1 114.7 115.7 118.9 119.3 113.1 122.3 121.5 123.0 134.2 124.3 124.5 Crude oil and natural gas. 5.64 129.3 132.1 130.2 133.1 130.7 131.2 132.6 131.4 131.8 132.4 131.3 131.9 134.4 133.4 Oil and gas extraction.. 4.91 139.0 142.0 139.9 143.1 140.4 140.6 142.0 140.5 140.6 141.2 142.9 143.9 145.9 145.1 Crude oil..................... 4.25 132.0 135.5 132.4 135.6 132.8 133.5 135.0 133.7 133.0 133.5 135.2 135.8 137.6 136.9 Gas and gas liquids.. .66 184.0 Oil and gas drilling........ .73 64.2 Metal, stone, and earth minerals. 1.43 143.5 140.5 142.6 139.5 140.2 149.6 153.7 148.2 153.5 156.8 153.1 146.6 146.5 147.3 Metal mining.................................. .61 142.0 138.1 142.3 133.1 141.1 153.3 152.3 155.7 158.4 165.8 162.6 151.8 151.1 152.8 Stone and earth minerals............. .82 144.7 142.2 142 144.3 139.6 146.8 154.8 142.6 149.8 150.1 146.1 142.8 143.0 143.2 Utilities Electric. 4.04 233.0 234.2 234.4 234.1 238.5 238.3 240.5 243.1 246.1 242.8 247.1 248.4 251.2 Gas.... 1.28 174.1 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: N.S.A. □ SEPTEMBER 1970 MARKET GROUPINGS (1957-59=100) 19 p 5 r 7 o - ­ 59 1969 1969 1970 Grouping p ti o o r n ­ a a v g e e r P - July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July Total index...................................... 100.00 172.8 167.7 174.6 179.2 177.8 173.6 169.6 168.2 171.5 172.1 170.6 169.1 171.5 164.0 Final products, total............................ 47.35 170.8 166.4 173.4 179.2 176.5 170.0 166.2 167.1 170.5 169.9 166.9 165.8 169.4 162.6 Consumer goods............................. 32.31 162.5 156.5 166.3 172.6 169.4 162.6 156.6 159.0 163.0 161.8 160.6 160.3 164.9 158.3 Equipment, including defense... 15.04 188.6 187.7 188.5 193.4 191.8 186.0 187.0 184.3 186.5 187.3 180.3 177.7 179.2 171.9 Materials.............................................. 52.65 174.6 168.8 175.6 179.2 178.9 176.9 172.6 169.5 172.5 174.0 174.3 172.1 173.4 165.3 Consumer goods Automotive products........................... 3.21 173.2 132.5 133.2 181.8 189.8 179.0 167.8 163.3 161.6 167.0 167.0 173. 182.9 128.8 Autos..................................................... 1.82 162.8 94.7 91.9 175.0 188.6 172.3 155.8 146.2 140.4 152.2 152.4 173.2 185.0 98.3 Auto parts and allied products.... 1.39 186.8 182.1 187.6 190.6 191.3 187.8 183.6 185.9 189.4 186.5 186.3 174.4 180.1 169.0 Home goods and apparel................... 10.00 159.3 147.9 159.2 162.0 166.0 156.6 143.4 147.4 158.6 158.3 157.1 154.1 155.5 142.9 Home goods........................................ 4.59 184.0 172.0 179.4 190.5 193.7 173.7 167.2 166.3 178.4 182.9 181.4 177.5 180.0 168.3 Appliances, TV, and radios......... 1.81 180.2 166.1 164.4 189.5 194.5 147.9 135.0 149.8 181.6 190.1 188.3 185.7 186.0 172.3 Appliances................................... 1.33 192.4 185.5 168.8 200.7 204.3 149.5 147.5 161.6 201.9 215.7 223.0 219.8 213.0 200.7 TV and home radios................. .47 145.6 111.1 152.1 158.0 166.7 143.4 99.7 116.4 124.3 117.8 90.3 89.5 110.0 92.3 Furniture and rugs......................... 1.26 180.3 171.4 183.8 182.9 184.8 182.5 181.5 170.0 167.2 168.3 165.8 159.2 162.9 155.5 Miscellaneous home goods.......... 1.52 191.5 179.6 193.5 197.9 200.2 196.9 193.6 182.9 183.9 186.3 186.2 183.0 187.0 174.2 Apparel, knit goods, and shoes.... 5.41 138.5 12.7.5 142.1 137.9 142.5 142.1 123.2 131.4 141.8 137.4 136.5 134.4 134.8 Consumer staples................................ 19.10 162. 165.1 175.6 176.6 167.8 163.0 161.6 164.4 165.6 162.8 161.4 161.2 166.7 171.3 Processed foods.................................. 8.43 136. 134.6 150.2 155.6 146.8 141.7 134.7 131.8 133.2 131.6 129.8 132.6 136.5 138.3 Beverages and tobacco..................... 2.43 146. 155.8 164.8 156.4 152.8 137.3 129.7 132.7 140.8 142.8 151.7 152.8 163.3 Drugs, soap, and toiletries............... 2.97 209. 206.6 211.3 216.9 215.4 214.3 212.0 213.2 220.1 216.5 216.4 215.2 219.0 214.7 Newspapers, magazines, and books 1.47 147. 147.5 149.4 151.1 147.0 147.0 149.4 146.4 147.0 148.3 146.6 146.5 145.5 142.4 Consumer fuel and lighting............. 3.67 199. 214.3 222.6 215.2 194.3 192.5 207.7 226.9 218.4 209.1 200.0 193.7 203.6 Fuel oil and gasoline..................... 1.20 144. 148.7 148.7 149.4 147.0 151.8 153.5 151.5 150.0 148.7 144.3 144.8 151.3 154.9 Residential utilities......................... 2.46 226. Electricity.................................... 1.72 249. 277.9 295.1 278.4 235.2 227.5 258.2 299.9 282.2 262.9 246.1 231.9 247.9 Gas................................................ .74 Equipment Business equipment............................. 11.63 195.6 193.6 195.1 201.6 200.2 193.6 194. 193.0 197.3 199.5 194.0 189.7 191.9 183.7 Industrial equipment......................... 6.85 179.1 179.4 179.8 185.6 181.8 174.4 177.2 176.9 184.9 187.0 182.1 176.0 178.7 172.7 Commercial equipment..................... 2.42 220.0 216.1 221.3 226.2 227.1 226.0 228.5 223.2 220.8 223.0 219.2 217.8 221.1 213.5 Freight and passenger equipment.. 1.76 246.7 245.5 244.7 251.9 254.5 247.7 238.5 232.3 231.8 232.9 224.0 223.3 222.5 209.0 Farm equipment................................. .61 136.8 113.7 120.7 137.8 143.8 124.1 132.5 141.0 143.9 150.5 140.1 134.4 135.6 Defense equipment............................. 3.41 Materials Durable goods materials.................... 26.73 165.5 160.5 166.2 170.2 169.7 166.3 161.8 156.8 158.4 161.3 160.4 159.5 161.7 152.9 Consumer durable.............................. 3.43 163.9 149.1 161.0 170.0 168.9 163.3 158.4 153.9 144.4 147.3 147.9 150.4 158.5 144.0 Equipment........................................... 7.84 191.9 187.2 189.2 195.2 194.2 190.9 192.6 190.3 190.3 191.9 185.8 178.7 178.4 172.0 Construction........................................ 9.17 152.4 154.5 160.4 160.3 157.8 152.5 145.9 137.0 141.1 144.0 148.1 149.6 154.0 149.0 Metal materials n.e.c.......................... 6.29 152.8 142.1 149.0 153.8 157.0 157.3 148.6 145.5 151.6 156.1 153.6 154.9 153.9 139.7 Nondurable materials......................... 25.92 183.9 177.3 185.3 188.5 188.4 187.8 183.7 182.5 186.9 187.1 188.5 185.1 185.5 178.1 Business supplies................................ 9.11 166.6 156.8 167.5 171.7 174.1 170.9 162.7 161.5 165.6 167.8 169.3 164.8 164.2 154.9 Containers........................................ 3.03 168.6 161.4 176.7 177.5 178.6 165.6 154.9 165.0 167.3 165.8 172.2 169.9 170.7 160.0 General business supplies............. 6.07 165.5 154.5 162.8 168.8 171.9 173.5 166.6 159.8 164.7 168.8 167.8 162.3 161.0 152.4 Nondurable materials n.e.c............... 7.40 237.8 227.8 235.8 241.3 241.4 244.4 237.6 235.9 243.8 241.9 245.7 236.6 236.5 226.0 Business fuel and power................... 9.41 158.2 157.5 162.9 163.2 160.6 159.5 161.5 160.8 162.9 162.8 162.1 164.3 166.1 162.9 Mineral fuels................................... 6.07 134.9 129.5 134.8 135.9 136.2 137.8 139.4 137.5 141.6 140.5 140.9 142.0 140.1 132.2 Nonresidential utilities.................. 2.86 216.7 Electricity.................................... 2.32 220.6 231.7 240.2 238.8 227.5 218.3 221.2 224.7 221.1 223.6 220.7 227.3 239.0 General industrial.................. 1.03 216.1 215.6 223.6 224.7 225.1 218.4 218.9 215.4 212.6 217.0 217.7 222.9 228.4 Commercial and other.......... 1.21 236.1 258.0 267.6 263.9 241.7 230.0 235.0 244.8 240.4 241.0 235.1 243.1 261.0 Gas................................................ .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 155.7 160.4 186.9 192.1 175.9 167.4 165.1 171.5 176.3 175.5 176.0 181.2 152.0 Apparel and staples................. 24.51 157.1 156.8 168.2 168.0 162.2 158.4 153.1 157.1 160.3 157.2 155.9 155.3 159.6 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 a INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1969 1969 1970 Grouping p p ti o r o o r n ­ ­ a a g v e e r p ­ July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Mayr Juner July Total index.................................... 100.00 172.8 167.7 174.6 179.2 177.8 173.6 169.6 168.2 171.5 172.1 170.6 169.1 171.5 164.0 Manufacturing, total......................... 86.45 173.9 167.3 174.3 180.0 179.5 175.0 169.6 167.5 171.3 172.2 171.0 168.9 171.1 161.6 Durable.......................................... 48.07 176.5 169.7 173.6 181.5 181.5 175.4 172.6 169.1 170.7 173.5 170.5 169.4 171.2 160.0 Nondurable.................................... 38.38 170.6 164.3 175.0 178.1 176.9 174.5 165.9 165.6 172.0 170.6 171.7 168.4 171.0 163.6 Mining................................................ 8.23 130.2 127.9 132.3 132.9 132.7 132.9 133.1 130.1 134.1 134.0 135.0 137.9 137.2 130.1 Utilities............................................... 5.32 221.2 Durable manufactures Primary and fabricated metals.... 12.32 162.5 154.3 161.7 165.7 166.3 165.8 161.8 158.3 158.1 161.4 158.7 158.3 159.4 148.5 Primary metals.................................. 6.95 149.1 137.2 144.2 148.6 151.9 152.5 144.7 143.1 145.7 150.7 147.9 149.0 146.8 132.0 Iron and steel................................ 5.45 140 130.0 135.5 140.0 143.6 144.1 136.7 135.2 136.3 141.1 138.3 139.4 137.5 125.2 Nonferrous metals and products 1.50 181.1 163.6 176.1 179.9 182.1 183.1 173.9 171.8 180.0 185.6 183.1 183.6 180.3 156.5 Fabricated metal products............. 5.37 179.8 176.4 184.2 187.7 184.8 183.0 183.8 177.9 174.1 175.1 172.6 170.5 175.7 169.9 Structural metal parts................. 2.86 173.3 170. 175.8 178.4 177.7 177.1 178.9 171.9 167.6 167.6 165.1 163.4 167.7 162.8 Machinery and related products... 27.98 188.4 180.8 182.0 193.6 193.4 184.6 183.2 181.0 182.9 185. 181.0 179.5 181.5 168.6 Machinery.......................................... 14.80 195.7 190.6 193.2 202.1 200.8 189.6 190.2 191.3 198.8 202.1 197.3 192.1 193.6 185.2 Nonelectrical machinery............. 8.43 194.6 191.1 188.3 197.2 196.7 193.0 197.9 197.9 199.7 202.1 197.4 191.8 190.4 182.0 Electrical machinery.................... 6.37 197.2 189.9 199.8 208.5 206.3 185.0 180.1 182.5 197.6 202.1 197.2 192.4 197.8 189.4 Transportation equipment............. 10.19 174.6 161.4 160.6 179.7 181.7 174.2 169.0 163.5 158.2 161.6 157.0 161.2 164.6 143.2 Motor vehicles and parts........... 4.68 166.9 136.5 137.7 173.8 179.9 170.2 159.4 154.3 148.3 155.7 155.4 167.7 176.4 133.8 Aircraft and other equipment.. , 5.26 177.8 179.0 177.1 181.9 180.5 174.5 174.1 168.4 163.8 163.7 154.9 152.4 151.2 148.3 Instruments and related products. 1.71 194.4 192 196.5 197.5 196.0 197.6 199.8 192.5 191.1 194.6 192.5 189.4 189.8 184.9 Ordnance and accessories............... 1.28 Clay, glass, and lumber................... 4.72 142.5 143.6 150.3 150.3 149.1 142.2 132.5 125.6 132.5 134.1 139.9 140.7 143.1 137.9 Clay, glass, and stone products... 2.99 156.0 161.1 167.4 166.7 164.9 157.5 149.1 137.5 142.9 145.8 154.0 155.0 159.6 156.4 Lumber and products..................... 1.73 119.1 113.4 120.9 122.1 121.8 115.8 103.8 105.0 114.6 113.7 115.5 116.1 114.6 Furniture and miscellaneous............ 3.05 176.7 170.6 181.3 181.9 184.0 181.8 181.3 170.2 169.3 171.0 169.0 165.2 168.5 161.8 Furniture and fixtures..................... 1.54 186.9 180.4 191.7 190.9 191.0 188.8 190.3 179.7 176.7 178.2 174.7 169.2 173.5 167.5 Miscellaneous manufactures.......... 1.51 166.4 160.7 170.8 172.7 176.9 174.7 172.2 160.6 161.7 163.6 163.2 161.1 163.4 155.9 Nondurable manufactures Textiles, apparel, and leather.......... 7.60 144.2 131.2 145.9 143. 147.2 147.5 130.8 138.9 146.4 143.0 142.0 139.5 138.5 124.4 Textile mill products........................ 2.90 154.2 142.1 153.8 154.6 156.7 156.5 145.0 152.1 155.5 154.1 154.3 151.5 148.4 137.0 Apparel products............................... 3.59 149.2 135.6 151.8 149.0 153.1 154.8 131.6 141.4 152.3 147.1 145.7 142.5 142.8 Leather and products........................ 1.11 101. 88.6 106.5 99.2 103.6 100.6 91.4 96.4 103.6 100.7 98.2 98.2 98.6 Paper and printing.............................. 8.17 164.4 155 164.3 168.3 172.4 170.2 162. 160.6 166.1 165.7 168.7 164.2 162.7 154.4 Paper and products........................... 3.43 175.6 162.3 177.5 180.2 187.0 178.5 163.8 171.2 180.9 176.6 182.5 175.4 174.4 162.3 Printing and publishing.................... 4.74 156.3 151.2 154.7 159.7 161.9 164.3 162.1 152.9 155.4 157.8 158.8 156.1 154.3 148.6 Newspapers..................................... 1.53 142.7 126.7 132.1 144.0 153.4 159.6 145.5 129.7 136.4 140.0 148.4 145.9 138.2 125.3 Chemicals, petroleum, and rubber... 11.54 222.6 216.1 223.1 229.4 227.0 227.1 221.7 218.5 228.0 226.9 228.3 220.1 225.5 217.4 Chemicals and products................... 7.58 239.0 234.7 239.0 244.8 241.1 241.9 239.1 235.2 246.0 244.4 248.4 241.4 243.7 236.0 Industrial chemicals....................... 3.84 283.0 277.1 280.1 289.1 284.0 288.2 286.6 277.7 290.0 287.6 295.0 281.3 282.6 Petroleum products........................... 1.97 143.8 151.1 152.2 152.0 148.2 148.9 145.9 139.0 140.1 141.5 142.0 145.0 152.2 154.6 Rubber and plastics products.......... 1.99 238.7 209.7 232.7 247.2 251.7 248.6 230.1 233.7 246.7 245.2 237.0 213.3 228.8 Foods, beverages, and tobacco.......... 11.07 139.0 139.1 152.9 155.3 148.4 141.2 134.0 132.6 135.5 134.6 135.2 137.5 142.6 141.3 Foods and beverages......................... 10.25 140.7 141.7 155.2 157.9 150.4 143.0 137.3 133.9 136.6 136.1 136.1 138.7 143.7 144.1 Food manufactures....................... 8.64 136.7 134.4 149.5 155.0 147.2 142.3 135.3 132.5 134.0 132.2 130.6 133.2 136.8 138.4 Beverages......................................... 1.61 161.9 180.8 185.5 173.3 167.5 146.9 148.0 140.9 150.2 157.0 165.4 168.5 180.7 Tobacco products............................... .82 117.3 106.5 124.2 123.2 123.9 118.5 93.7 116.5 122.2 115.0 124.8 122.0 129.1 Mining Coal, oil, and gas................................ 6.80 127.4 122.6 127.3 128.3 128.6 130.2 131.9 130.4 134.1 132.8 132.4 134.0 132.1 123.9 Coal....................................................... 1.16 117.7 91.0 128.4 121.3 126.1 123.8 117.2 110.8 123.8 122.5 123.9 135.5 127.2 92.5 Crude oil and natural gas................. 5.64 129.3! 129.1 127.1 129.8 129.1 131.5 134.9 134.5 136.3 134.9 134.2 133.7 133.1 130.4 Oil and gas extraction................... 4.91 139.0 138.6 136.3 139.4 138.6 141.1 144.6 143.9 145.8 144.7 144.9 143.5 143.1 141.6 Crude oil...................................... 4.25 132.0 132.8 129.8 132.9 131.5 133.5 136.3 135.7 137.0 136.2 137.4 136.5 136.2 134.2 Gas and gas liquids................... .66 184.0 Oil and gas drilling........................ .73 64.2 Metal, stone, and earth minerals.... 1.43 143.5 152.8 156.0 154.4 152.1 145.9 139.3 128.3 133.6 139.7 146.9 156.2 161.3 159.5 Metal mining....................................... .61 142.0 147.8 153.7 150.4 151.0 142.6 137.1 137.0 142.6 147.6 151.2 167.0 170.7 163.5 Stone and earth minerals................. .82 144.7 156.6 157.8 157.3 152.9 148.3 140.9 121.8 126.9 133.9 143.8 148.1 154.4 156.5 Utilities Electric.................................................. 4.04 233.0 251.4 263.6 255.7 230.7 222.2 237.0 256.7 247.2 240.3 231.6 229.2 242.8 Gas......................................................... 1.28 74.1 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 □ SEPTEMBER 1970 SELECTED BUSINESS INDEXES (1957-59= 100, except as noted) Industrial production fac M tu a r n in u g ­ 2 Prices 4 Ca­ Period M F a in jo a r l m pr a o r d k u e c t t g s roupings Ma g j r o o r u i p n i d n u g s s try i p u n t t a i i m c o li i n z t f y a g ­ . s C t c t i r o o o u n n n c ­ ­ ­ N r p t i o e u c l m n o r u a y a l ­ l ­ g ­ ­ Em­ s T r a e o l ta e ta i s l l 3 Whole­ Total (per tracts ment— ploy­ Pay­ Con­ sale Total g s C o u o o m n d e ­ s r E m q e u n ip t ­ M ria a l t s e­ Mfg. M in i g n­ U iti t e il s ­ cent) Total1 ment rolls sumer m co o m di ­ ty 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....................... 165.5 165.1 156.9 182.6 165.8 166.9 126.6 202.5 84.5 173 129.3 115.2 '167.9 165 121.2 108.7 1969....................... 172.8 170.8 162.5 188.6 174.6 173.9 130.2 221.2 133.8 117.3 '180.8 171 127.7 113.0 1969—July........... 174.6 172.8 164.4 190.8 176.5 175.6 133.2 222.2 ] 180 134.0 117.8 '180.4 170 128.2 113.3 Aug........... 174.3 172.7 164.2 190.3 175.9 175.4 131.2 222.6 \ '84.2 216 134.2 117.7 '184.6 172 128.7 113.4 Sept........... 173.9 172.2 162.8 192.4 176.0 175.2 131.6 222.5 j 173 134.4 117.7 '185.0 171 129.3 113.6 Oct............ 173.1 170.9 161.2 191.9 175.4 173.9 130.2 226.0 j 195 134.9 117.4 '184.0 173 129.8 114.0 Nov........... 171.4 168.4 160.5 185.6 174.6 171.8 132.6 226.0 *81.7 178 134.8 116.2 '182.8 172 130.5 114.7 Dec............ 171.1 168.5 160.7 185.2 173.9 171.3 134.4 227.9 J 218 134.9 116.2 '185.0 172 131.1 115.1 1970—Jan............ 170.4 168.5 161.5 183.6 172.5 170.2 131.7 230.1 205 135.2 115.7 '183.0 173 131.8 116.0 Feb............ 170.5 169.9 162.4 186.2 171.5 170.3 134.2 232.7 *79.8 215 135.4 115.0 '179.9 175 132.5 116.4 Mar........... 171.1 169.7 162.0 186.3 171.7 170.8 135.1 230.3 I 208 135.7 115.2 '182.2 174 133.2 116.6 Apr............ 170.2 '168.5 r163.2 '179.0 '171.9 '170.0 133.9 233.8 203 135.5 114.2 '179.3 179 134.0 116.6 May.......... '169.0 r167.7 r163.2 177.3 '170.4 '168.1 '134.8 234.9 *77.9 170 '134.9 112.6 '176.7 178 134.6 116.8 June.......... 168.8 ri67.2 '162.9 '176.4 '170.5 '167.7 '4 35.1 '237.3 j 186 134.4 '112.3 '178.6 178 135.2 117.0 July.......... 169.2 167.2 r163.7 '174.7 '171.1 '168.4 '134.5 '238.2 180 '134.5 '111.9 '178.2 '180 135.7 117.7 Aug.*.... 169.0 166.6 163.2 173.8 171.3 168.1 137.0 234.5 134.3 111.5 180.9 179 117.1 Capacity utilization: Based on data from Federal Reserve, McGraw- 1 Employees only: excludes personnel in the Armed Forces. Hill Economics Department, and Department of Commerce. 2 Production workers only. Construction contracts: F. W. Dodge Co. monthly index of dollar 3 F.R. index based on Census Bureau figures. value of total construction contracts, including residential, nonresidential, 4 Prices are not seasonally adjusted. and heavy engineering; does not include data for Alaska and Hawaii. Employment ami payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. 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 1968 1969 type of construction July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Total construction 1........................... 61,732 67,425 6,298 6,523 5,140 6,240 4,406 5,228 4,927 5,249 6,140 6,757 5,417 6,552 6,177 By type of ownership: Public............................................ 19,597 22,656 2,352 2,605 1,719 1,626 1,427 1,727 1,433 1,652 2,037 1,791 1,695 2,814 Private 1....................................... 42,135 44,769 3,947 3,918 3,420 4,615 2,980 3,501 3,495 3,597 3,864 4,966 3,722 3,738 By type of construction: Residential building 1............... 24,838 25,219 2,296 2,394 1,952 2,290 1,675 1,744 1,475 1,482 1.974 2,466 2,122 2,347 Nonresidential building............ 22,512 25,667 2,402 2,460 2,013 2,502 1,566 2,168 2,252 2,269 2,191 2,412 1,749 2,469 Nonbuilding................................ 14,382 16,539 1,600 1,669 1,174 1,149 1,165 1,317 1,201 1,498 1.975 1,877 1,544 1,361 Private housing units authorized... 1,330 1,299 1,228 1,245 1,201 1,183 1,191 1,239 1,013 1,137 1,099 1,263 1,321 *1,306 1,265 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total Total d N f e r a e n o r s t m n i i ­ a ­ l Total Indus­ Bu C il o d m in ­ gs b O u t i h l e d r ­ Other Total M ta i r l y i­ H w ig ay h­ d C v e m o a v n & t e e i s l n o e o t n r p ­ ­ Other 2 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 9,276 1,796 16,039 1969—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.. '90,657 '63,561 '29,280 34,281 6,946 19,856 5,850 10,629 27,096 943 Nov.. '88,791 '61,805 '28,778 33,027 6,571 10,168 6,023 10,265 26,986 779 Dec.. '89,759 61,878 '28,926 32,952 6,419 10,337 5,861 10,335 27,881 895 1970—Jan.. '90,790 62,737 '28,711 34,026 6,433 11,029 5,885 10,679 28,053 937 Feb.. '91,978 '63,340 '28,658 34,682 6,000 11,724 6,227 10,731 28,638 890 Mar.. '90,688 '63,980 '29,402 34,578 5,916 11,831 6,099 10,733 26,708 766 Apr.. '90,019 62,754 '28,977 33,061 6,230 10,577 5,857 11.113 27,265 746 Mayr 88,529 61,748 28,242 33.506 5,864 10,553 5,975 11.114 26,781 868 Juner 88,541 61,576 27,622 33,954 5,892 10,903 5,878 11,281 26,965 830 July*, 87,681 61,106 27,984 33,122 6,257 9,660 6,013 11,192 26,575 641 1 Includes religious, educational, hospital, institutional, and other build- 4 Beginning 1963, reflects inclusion of new series under “Public” (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in “Other.” 3 Beginning July 1962, reflects inclusion of new series affecting most Note.—Monthly data are at seasonally adjusted annual rates. Figures private nonresidential groups. for period shown are Census Bureau estimates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R -) Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.: Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 f - a 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:*9 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—July................ 1,429 168 304 584 373 803 63 563 127 125 1 26 21 5 35 Aug................ 1,376 186 395 525 270 752 68 556 128 125 3 27 22 4 38 Sept................ 1,481 140 365 615 361 828 96 557 133 129 4 23 18 5 40 Oct.................. 1,390 172 299 574 345 766 93 531 126 123 2 30 25 5 43 Nov................ 1,280 164 267 517 332 762 83 435 97 95 3 23 19 4 33 Dec................. 1,402 167 297 573 365 776 105 521 85 84 1 27 23 4 27 1970-Jan.................. 1,059 150 245 444 220 577 66 416 69 66 3 20 17 3 24 Feb................. 1,306 243 209 525 329 725 72 509 77 74 3 21 18 4 24 Mar................ 1,392 319 290 519 264 708 70 614 117 114 3 30 25 5 29 Apr.'............. 1,224 222 255 524 223 697 57 470 130 128 2 37 32 5 40 May'............. 1,242 190 228 566 258 728 81 433 127 125 2 42 37 5 33 June'............. 1,375 174 302 590 309 831 78 466 140 133 7 46 41 5 35 July*.............. 1,585 260 323 655 347 827 92 666 142 139 3 49 43 6 37 Note.—Starts are Census Bureau series (including farm starts) except habilitation units under FHA, based on field office reports of first compliin 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 □ SEPTEMBER 1970 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force, S.A. Period i p T n o s o N t p t i a u t .S u l l a t . n A i t o o i . o n n n a - l l N ab N o o t . r S in . f A o t . r h c e e T l f S a o o b . r A t c o a e . r l Total Total E In m c n u p o lt l n u o a r y a g e l r d i­ 1 agric I u n lture U pl n oy em ed ­ U (p n e e m r S r a m . e t A c e n p e . 2 t l n o t y ) ­ 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—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 May 139,884 54,915 85,783 82,555 78,449 74,836 3,613 4,106 5.0 June 140,046 52,816 85,304 82,125 78,225 74,671 3,554 3,900 4.7 July. 140,259 52,304 85,967 82,813 78,638 75,119 3,519 4,175 5.0 Aug. 140,468 53,220 85,810 82,676 78.445 75,025 3,420 4,231 5.1 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 t n ruc­ 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 1968.............................................................. 67,915 19,781 606 3,285 4,310 14,084 3,382 19,623 11,845 1969.............................................................. 70,274 20,169 619 3,437 4,431 14,645 3,557 11,211 12,204 SEASONALLY ADJUSTED 1969—Aug................................................... 70,497 20,246 621 3,420 4,457 14,713 3,580 11,248 12,212 Sept.................................................. 70,567 20,252 623 3,436 4,459 14,739 3,584 11,289 12,185 Oct.................................................... 70,836 20,233 622 3,445 4,463 14,824 3,596 11,361 12,292 Nov.................................................. 70,808 20,082 624 3,473 4,464 14,848 3,611 11,383 12,323 Dec................................................... 70,842 20,082 627 3,496 4,469 14,750 3,626 11,431 12,361 1970—Jan.................................................... 70,992 20,018 625 3,394 4,507 14,938 3,648 11,472 12,390 Feb................................................... 71 ,135 19,937 626 3,466 4,496 14,987 3,652 11,530 12,441 Mar.................................................. 71,256 19,944 626 3,481 4,502 14,984 3,665 11,537 12,517 Apr................................................... 71,163 19,795 622 3,426 4,468 14,991 3,673 11,564 12,624 May.................................................. 70,852 19,572 620 3,351 4.,478 14,968 3,677 11,572 12,614 June.................................................. 70,603 19,477 620 3,324 4,511 14,927 3,679 11,532 12,533 July?................................................ 70,635 19,411 618 3,314 4,539 14,939 3,676 11,537 12,601 Aug.P............................................... 70,543 19,338 621 3,275 4; 524 14,931 3,667 11,563 12,624 NOT SEASONALLY ADJUSTED 1969—Aug................................................... 70,758 20,497 638 3,731 4,510 14,670 3,641 11,372 11,699 Sept.................................................. 70,964 20,482 630 3,687 4,508 14,714 3,595 11,300 12,048 Oct.................................................... 71,333 20,395 623 3,648 4,481 14,850 3,589 11,372 12,375 Nov.................................................. 71,354 20,194 622 3,553 4,486 15,092 3,597 11,349 12,461 Dec................................................... 71,760 20,110 623 3,398 4,478 15,638 3,608 11,351 12,554 1970—Jan.................................................... 69,933 19,824 611 3,048 4,435 14,707 3,604 11,254 12,450 Feb................................................... 70,029 19,770 608 3,071 4,420 14,606 3,615 11,357 12,582 Mar.................................................. 70,460 19,794 610 3,161 4,443 14,700 3,639 11,433 12,680 Apr................................................... 70,758 19,627 616 3,286 4,432 14,818 3,658 11,564 12,757 May.................................................. 70,780 19,432 620 3,344 4,469 14,878 3,670 11,641 12,726 June.................................................. 71,385 19,627 635 3,504 4,561 14,994 3,708 11,717 12,639 July*................................................ 70,689 19,333 635 3,573 4,593 14,930 3,738 11,722 12,165 Aug.P............................................... 70,724 19,553 638 3,573 4,578 14,888 3,729 11,690 12,075 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 1968, series has been adjusted to Mar. 1969 bench­ the Armed Forces are excluded. mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted* Not seasonally adjusted1 Industry group 1969 1970 1969 1970 Aug. June July* Aug.* Aug. June July* Aug.* 14,826 14,140 14,099 14,048 15,014 14,261 13,973 14,211 Durable goods....................................................................... 8,698 8,134 8,083 8,054 8,701 8,228 7,999 8,034 Ordnance and accessories.......................................... 181 137 133 130 179 136 131 129 Lumber and wood products..................................... 527 495 489 490 548 516 506 510 Furniture and fixtures................................................ 402 372 372 374 407 373 365 378 Stone, clay, and glass products............................... 524 505 500 496 542 518 514 513 Primary metal industries............................................ 1,093 1,034 1,033 1,047 1,096 1,059 1,045 1,050 Fabricated metal products........................................ 1,115 1,057 1,057 1,057 1,111 1,068 1,038 1,055 Machinery..................................................................... 1,374 1,321 1,316 1,307 1,362 1,335 1,308 1,295 Electrical equipment and supplies........................... 1,363 1,297 1,289 1,277 1,365 1,291 1,265 1,278 Transportation equipment........................................ 1,481 1,309 1,291 1,278 1,440 1,321 1,233 1,216 Instruments and related products........................... 296 280 279 273 297 281 277 274 Miscellaneous manufacturing industries................ 342 327 324 325 354 330 317 336 Nondurable goods................................................................. 6,128 6,006 6,016 5,994 6,313 6,033 5,974 6,177 Food and kindred products...................................... 1,209 1,214 1,206 1,226 1,338 1,203 1,234 1,357 Tobacco manufactures............................................... 72 67 67 66 79 58 58 72 Textile-mill products................................................... 874 842 843 837 882 853 834 843 Apparel and related products.................................. 1,238 1,214 1,225 1,213 1,254 1,228 1,180 1,229 Paper and allied products.......................................... 552 549 545 542 560 557 547 550 Printing, publishing, and allied industries............. 683 679 679 677 682 680 677 676 Chemicals and allied products.................................. 623 603 606 599 630 608 609 605 Petroleum refining and related industries............... 118 118 117 118 122 121 121 122 Rubber and misc. plastic products........................... 463 434 443 441 465 437 434 443 Leather and leather products.................................... 296 286 285 275 301 288 280 280 1 Data adjusted to 1969 benchmark. 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 worked1 Average weekly earnings1 Average hourly earnings1 (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1969 1970 1969 1970 1969 1970 Aug. June July* Aug.* Aug. June July* Aug.* Aug. June July* Aug.* 40.6 39.8 40.1 39.9 129.92 134.40 134.46 134.06 3.20 3.36 3.37 3.36 Durable goods......................................................... 41.2 40.4 40.7 40.6 139.33 144.94 143.87 144.99 3.39 3.57 3.57 3.58 Ordnance and accessories.................................. 40.4 40.6 40.3 41.1 137.89 146.11 143.28 148.47 3.43 3.59 3.60 3.63 Lumber and wood products........................ 39.9 39.6 39.8 40.0 112.16 119.50 118.31 122.51 2.79 2.98 2.98 3.04 Furniture and fixtures................................... 40.3 38.9 39.2 39.1 107.71 107.92 107.59 110.88 2.64 2.76 2.78 2.80 Stone, clay, and glass products................... 41.9 41.1 41.2 41.2 136.53 141.10 140.83 143.03 3.22 3.40 3.41 3.43 Primary metal industries.............................. 41.9 40.4 40.8 40.8 160.51 159.54 160.36 163.21 3.84 3.92 3.94 4.01 Fabricated metal products........................... 41.6 40.9 41.3 40.6 139.28 145.49 144.79 144.08 3.34 3.54 3.54 3.54 Machinery........................................................ 42.5 41.1 41.1 40.9 149.94 155.32 153.06 152.31 3.57 3.77 3.77 3.77 Electrical equipment and supplies.............. 40.4 39.5 40.4 39.8 124.93 130.68 132.14 131.80 3.10 3.30 3.32 3.32 Transportation equipment........................... 41.2 41.6 41.2 42.1 158.76 170.56 166.06 169.33 3.92 4.10 4.08 4.09 Instruments and related products............... 40.9 40.2 40.2 40.3 128.21 133.39 132.53 132.73 3.15 3.31 3.33 3.31 Miscellaneous manufacturing industries... 39.1 38.6 39.2 39.0 103.22 108.75 108.19 109.59 2.64 2.81 2.81 2.81 Nondurable goods................................................... 39.7 39.0 39.2 39.0 116.51 119.95 121.13 120.74 2.92 3.06 3.09 3.08 Food and kindred products......................... 40.9 40.3 40.2 40.3 121.72 127.58 128.61 126.48 2.94 3.15 3.16 3.10 Tobacco manufactures................................. 37.2 37.4 37.8 37.5 93.38 115.14 113.70 107.73 2.49 3.03 3.04 2.85 Textile-mill products...................................... 40.9 40.0 40.3 39.8 97.58 97.93 96.96 97.36 2.38 2.43 2.43 2.44 Apparel and related products..................... 35.9 35.2 35.5 35.0 83.85 84.25 84.25 84.96 2.31 2.38 2.38 2.40 Paper and allied products............................ 42.9 41.6 41.7 41.4 141.37 142.61 144.70 145.18 3.28 3.42 3.47 3.49 Printing, publishing, and allied industries. 38.4 37.7 37.9 37.6 142.82 147.03 148.18 149.31 3.70 3.90 3.92 3.95 Chemicals and allied products.................... 41.8 41.5 41.5 41.5 145.95 152.72 153.59 154.42 3.50 3.68 3.71 3.73 Petroleum refining and related industries . 42.8 42.6 42.7 43.5 171.17 181.04 185.75 185.74 3.99 4.23 4.27 4.26 Rubber and misc. plastic products............. 40.9 40.4 40.7 40.4 126.28 127.26 128.56 128.39 3.08 3.15 3.19 3.17 Leather and leather products....................... 36.9 37.6 37.5 36.9 87.19 94.87 93.74 91.64 2.35 2.49 2.48 i 2.47 i Data adjusted to 1969 benchmark. Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 PRICES □ SEPTEMBER 1970 CONSUMER PRICES (1957-59=100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h m n ip e e r - ­ c F a o o n u i a e d l l l t e r G a i l n c e a i c d s t ­ y o n F i p a n i n u e s g h d r r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o h rv d d e ­ s r tion tion ices 1929............................ 59.7 55.6 85.4 1933 ............................ 45.1 35.3 60.8 1941............................ 51.3 44 2 61 4 64.3 45 2 88.3 51.2 50.6 47.6 57.3 58.2 1945............................ 62.7 58 4 67 5 66 1 53 6 86.4 55.4 57.5 63! 6 75.0 67.3 I960............................ 103.1 101.4 103.1 103.1 103.7 99.5 107.0 101.5 102.2 103.8 105.4 108.1 104.1 104.9 103.8 1961............................ 104.2 102.6 103.9 104.4 104.4 101.6 107.9 101.4 103..0 105.0 107.3 111.3 104.6 107.2 104.6 1962............................ 105.4 103.6 104.8 105.7 105.6 102.1 107.9 101.5 103.6 107.2 109.4 114.2 106.5 109.6 105.3 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—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 Apr................. 134.0 132.0 134.4 122.6 152.1 120.9 115.7 122.0 131.1 128.9 142.3 162.8 129.8 134.4 135.6 May............... 134.6 132.4 135.1 123.0 153.3 121.0 115.8 122.5 131.9 129.9 142.9 163.6 130.3 135.2 136.1 June............... 135.2 132.7 135.6 123.4 154.4 121.2 115.3 122.8 132.2 130.6 143.7 164.7 130.2 136.1 136.7 July................ 135.7 133.4 136.2 123.8 155.0 122.3 115.7 123.0 131.4 131.4 144.3 165.8 130.6 136.6 137.3 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 e P 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 u e i y a n d n i ­ p ­ t ­ F t e u u t r c r e n . , i­ N t e m m a r o l a i e l n l n i ­ s c ­ ­ T e p m 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 u s a ­ s ­ 1960............................... 100.7 96.9 100.0 101.3 101.5 105.2 99.6 100.2 99.9 100.4 101.8 101.3 102.9 100.1 101.4 101.7 1961............................... 100.3 96.0 101.6 100.8 99.7 106.2 100.7 99.1 96.1 95.9 98.8 100.7 102.9 99.5 101.8 102.0 1962............................... 100.6 97.7 102.7 100.8 100.6 107.4 100.2 97.5 93.3 96.5 100.0 100.0 102.9 98.8 101.8 102.4 1963................................ 100.3 95.7 103.3 100.7 100.5 104.2 99.8 96.3 93.8 98. 6 99 2 100.1 103.1 98.1 101.3 103.3 1964............................... 100.5 94.3 103.1 101.2 101.2 104.6 97.1 96.7 92.5 100. 6 9 0 102.8 103.8 98.5 101.5 104.1 1965................................ 102.5 98.4 106.7 102.5 101.8 109.2 98.9 97.4 92.9 101.1 99.9 105.7 105.0 98.0 101.7 104.8 1966............................... 105.9 105.6 113.0 104.7 102.1 119.7 101.3 97.8 94.8 105.6 102.6 108.3 108.2 99.1 102.6 106.8 1967................................ 106.1 99.7 111.7 106.3 102.1 115.8 103.6 98.4 97.0 105.4 104.0 109.5 111.8 101.0 104.3 109.2 1968.............................. 108.8 102 2 114 2 109 0 105 8 119 5 102 5 98.2 100.2 119.4 104.9 112.4 115.4 103.9 108.2 111.7 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—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 Apr..................... 116.6 111.3 124.9 116.2 109.3 128.5 107.5 100.4 104.2 120.1 112.5 127.8 123.4 108.3 117.8 103.1 117.8 May................... 116.8 111.0 124.1 116.6 109.3 127.9 109.1 100.6 104.2 121.0 112.3 128.7 123.7 108.3 117.9 103.2 118.2 June................... 117.0 111.3 124.8 116.7 109.3 127.3 108.6 100.5 104.1 120.2 112.2 129.1 124.1 108.6 117.9 103.3 121.0 July.................... 117.7 113.1 126.6 116.9 109.2 127.1 108.9 100.9 105.6 119.6 112.5 129.0 124.7 108.8 118.1 103.2 121.4 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1957-59=100) 1969 1970 1969 1970 Group Group July May June July July May June July Farm products: Pulp, paper, and allied products: 103.1 123.5 122.2 112.6 Pulp, paper and products, excluding 83.7 88.4 89.2 89.2 building paper and board............ 108.9 113.0 113.0 113.3 126.8 122.2 123.0 126.2 Woodpulp.............................................. 98.0 105.0 105.0 109.6 90.2 83.7 77.9 81.9 Wastepaper............................................ 111.2 104.2 99.0 95.3 67.7 65.6 65.7 66.1 Paper....................................................... 117.1 121.6 121.7 121.9 134.9 139.5 139.6 139.7 Paperboard............................................ 93.7 96.7 95.5 95.5 117.0 79.7 85.3 111.2 Converted paper and paperboard 109.0 113.4 113.6 113.7 111.3 111.1 112.6 116.8 Building paper and board.................. 95.9 93.3 93.3 93.2 106.9 115.0 114.9 116.5 Processed foods and feeds: Metals and metal products: V S C D R P M B u r e e e e a o e g f r v g i a c i e r e a e n t e y a r r t , e s a a l d s a p p g b a e n e r o l n v d e o s d u d e d l o f a g c t r u i b r n e o u l y c a t d i n a e , t k t b f s s n b e a e . l d r e . n a e c . y v . n d t . p o i . e d . p o r . r i f . o l n a r i . v s . o s g d e . . e . h . e d r . u . g . y . . . u . c . . m e . . . . . c . . t . t . . . . s a . . . a t . . . . . . b s . . . t . . . . . . . . e l . . . . . . . e . . . . . r . . . . . . s . . . i . . . . . . . . a . . . . . . . . . . . . . . . l . . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 1 9 8 8 0 1 1 2 1 2 3 6 0 9 2 9 2 2 6 7 3 . . . . . . . . . . 1 4 4 9 3 0 6 5 0 6 1 1 1 1 1 1 1 1 1 1 1 2 1 2 1 2 3 0 0 2 3 8 6 0 2 4 5 6 6 9 . . . . . . . . . . 1 1 3 8 5 4 6 4 4 6 1 1 1 1 1 1 1 1 1 1 2 3 0 1 0 2 2 3 1 1 . 5 1 2 0 5 8 3 3 0 4 . . . . . . . . . . 3 5 8 3 4 5 2 4 7 6 1 1 1 1 1 1 1 1 1 1 2 2 1 3 0 3 2 0 1 1 5 2 1 3 6 5 8 3 0 3 . . . . . . . . . . 8 3 3 8 3 9 2 0 4 7 P H W I Q M M F r l f a o e u A a i e b s a n r m t A c H r t a i i l e a l b m c n w l n i a l c g i a n a l d t o l r g n e e p n d s e q t e t o a e u q s u i e i t n u s r p l e i u m p m r c s m t e e u n t e r a t n a l .. l t . p . . . m . . r . . . . o . e . . . d . t . . . a . u . . . l . . c . . . p . . t . . s r . . . o . . . . . . . d . . . . . . . u . . . . . . . c . . . . . . t . . . . s . 1 1 1 1 1 1 1 1 9 3 1 1 2 1 1 2 1 7 6 1 1 9 0 3 9 2 . . . . . . . . . 1 1 7 3 5 6 7 4 0 1 1 1 1 1 1 1 1 1 1 2 2 2 1 5 0 2 2 7 8 8 0 5 7 1 5 4 . . . . . . . . . 3 9 3 2 7 5 4 0 0 1 1 1 1 1 1 1 1 1 1 2 0 3 2 2 5 2 2 8 5 2 0 0 2 5 4 5 . . . . . . . . . 1 9 4 4 2 0 0 7 0 1 1 1 1 1 1 1 1 1 2 2 2 1 5 2 2 0 3 5 6 9 2 6 3 0 2 1 . . . . . . . . . 1 1 1 8 3 3 4 6 2 119.5 124.1 126.7 128.2 118.7 119.4 120.8 127.4 Machinery and equipment: Textile products and apparel: Agricultural machinery and equip... 132.3 137.4 137.1 137.4 Cotton products...................................... 105.3 105.8 105.9 105.8 Construction machinery and equip.. 134.8 140.9 141.0 141.2 Wool products......................................... 105.0 103.8 102.8 102.6 Metalworking machinery and equip. 133.3 141.3 141.7 142.2 Man-made fiber textile products......... 92.6 89.5 89.0 88.4 General purpose machinery and Silk yarns.................................................. 168.2 204.8 199.5 201.0 equipment..!.................................... 121.5 127.9 128.2 129.8 Apparel...................................................... 113.9 118.0 118.4 118.4 Special industry machinery and Textile housefurnishings 104.9 108. 7 109. 7 109.8 equipment (Jan. 1961= 100).......... 129.2 134.0 134.3 135.1 Miscellaneous textile products............. 120.3 125.6 124.3 125.5 Electrical machinery and equip......... 104.8 107.5 108.2 108.6 Miscellaneous machinery................... 118.1 122.9 123.1 123.0 Hides, skins, leather, and products: Hides and skins....................................... 123.0 101.8 93.8 90.8 Furniture and household durables: Leather....................................................... 121.2 120.4 119.8 119.8 Footwear................................................... 132.7 137.8 137.9 137.9 Household furniture............................ 122.8 125.9 126.0 126.3 Other leather products........................... 117.5 120.4 120.9 121.0 Commercial furniture......................... 119.5 125.1 127 6 127.6 Floor coverings.................................... 93.2 92.8 92.6 92.7 Fuels and related products, and power: Household appliances......................... 93.0 94.9 94.9 94.9 Home electronic equipment............... 77.9 77.0 77.0 77.2 Coal............................................................ 115.1 146.9 152.8 155.5 Other household durable goods.... 131.2 135.3 135.5 135.8 Coke........................................................... 120.3 139.6 139.6 141.0 Gas fuels (Jan. 1958= 100)................... 121.6 136.1 136.3 137.0 Electric power (Jan. 1958= 100).......... 102.5 104.2 104.3 104.8 Nonmetallic mineral products: Crude petroleum...................................... 104.5 i04. 5 104.5 103.3 Petroleum products, refined................. 103.2 104.2 102.2 102.4 Flat glass 116.2 121.1 121.6 122.1 Concrete ingredients........................... 116.1 122.1 122.3 122.4 Chemicals and allied products: Concrete products................................ 112.3 117.4 118.1 118.3 Structural clay products excluding I P n r d e u pa st r r e i d a l p c a h i e n m t.. i . c .. a .. l .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 1 7 9 . . 7 2 1 9 2 8 2 . . 2 8 1 9 2 8 2 . .8 0 1 9 2 8 2 . . 8 8 116.9 121.2 121.2 121.3 P A D P F l a a g r a i u t r s n s i g t c t i s a c u m n l a r t d n e a u s d t r o e i a n i r l p l s i s h a c , a a h l i s n r e n . m d m . e . . d a . i m . c c i .. b a e . a . l l u . t s e . e . t . . i r a . . c . . i n . . a a . . . . d l l . . s . . s . . . . p . . . . . . . . . . r . . . . . . . . o . . . . . . . . d . . . . . . . . . . . u . . . . . . . . . c . . . . . . . . . t . . . . . . . s . . . . . . . . . . . . . 9 9 9 8 8 0 3 0 3 8 . . . . . 8 5 6 2 2 1 9 9 8 9 0 1 4 0 3 6 . . . . . 7 8 6 7 2 1 9 9 9 8 0 1 1 4 0 8 . . . . . 1 8 8 8 2 1 9 9 9 8 0 5 1 0 1 7 . . . . . 8 5 0 0 7 O G t y h p e s r u n m o n p m ro e d t u al c l t i s c minerals............... 1 1 1 1 11 0 0 0 1 6 0 4 9 3 . . . . . 1 9 9 6 0 1 1 1 1 9 2 2 0 1 5 6 0 4 3 . . . . . 1 9 7 0 1 1 1 1 1 9 2 2 0 1 2 0 5 0 3 . . . . . 7 9 8 7 7 1 1 * 1 9 0 1 2 2 2 0 3 0 5 . . . . . 9 9 0 7 7 Other chemicals and products............. 112.8 117.7 117.8 118.4 Rubber and plastic products:1 Transportation equipment: Crude rubber............................................ 90.7 87. 1 86.8 86.0 Motor vehicles and equipment......... 106.6 109.4 109.5 109.4 Tires and tubes........................................ 98.4 101.7 101.7 107. 5 Railroad equipment (Jan. 1961 = 100) 114.3 119.0 119.3 119.3 Miscellaneous rubber products............ 111.0 115.7 115.7 116.5 Plastic construction products (Dec. 1969-100)............................................ 97.6 97.4 96.8 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition....................................... 111.2 115.1 115.8 115.9 Lumber...................................................... 133.4 124.3 123.0 121.8 Tobacco products................................ 123.4 124.1 132.3 131.7 Millwork................................................... 135.6 131.1 131.1 131.1 102.0 109.0 109.4 109.8 Plywood.................................................... 93.9 99.5 98.5 98.5 Photographic equipment and supplies 111.4 116.2 116. 1 117.0 Other wood products (Dec. 1966 = 100) 115.6 119.3 119.3 119.4 Other miscellaneous products........... 114.1 116.6 116.8 118.2 1 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 □ SEPTEMBER 1970 GROSS NATIONAL PRODUCT (In billions of dollars) 1969 1970 Item 1929 1933 1941 1950 1965 1966 1967 1968 1969 II III IV I II Gross national product........................................ 103.1 55.6 124.5 284.8 684.9 749.9 793 9 865.0 931.4 923.7 942.6 951.7 959.5 971.1 Final purchases...................................................... 101.4 57.2 120.1 278.0 675.3 735.1 785.7 857.4 922.9 915.9 931.2 944.5 957.9 968.1 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 432.8 466 3 492.1 535.8 577.5 573.3 582.1 592.6 603.1 614.4 Durable goods.................................................. 9.2 3.5 9.6 30.5 66.3 70.8 73. 1 84.0 90.0 90.6 89.5 90.8 89.1 91.9 Nondurable goods........................................... 37.7 22.3 42.9 98.1 191.1 206.9 2150 230.2 245.8 244.0 248.1 252.0 258.8 262.6 Services............................................................... 30.3 20. 1 28.1 62.4 175.5 188.6 204.0 221.6 241.6 238.7 244.5 249.8 255.2 259.9 Gross private domestic investment..................... 16.2 1.4 17.9 54.1 108.1 121.4 116.6 126.5 139.8 139.3 143.8 140.2 133.2 134.3 Fixed investment............................................... 14.5 3.0 13.4 47.3 98.5 106.6 108.4 118.9 131.4 131.4 132.4 133.0 131.6 131.2 Nonresidential................................................ 10.6 2.4 9.5 27.9 71.3 81.6 83.3 88.7 99.3 97.5 101.5 102.6 102.6 102.8 Structures.................................................. 5.0 .9 2.9 9.2 25.5 28.5 28.0 29.6 33.8 32.3 35.2 35.1 35.7 35.3 Producers’ durable equipment.............. 5.6 1.5 6.6 18.7 45.8 53.1 55.3 59.1 65.5 65.2 66.3 67.5 66.9 67.5 Residential structures.................................. 4.0 .6 3.9 19.4 27.2 25.0 25.1 30.3 32.0 33.9 31.0 30.4 29.1 28.4 Nonfarm.................................................... 3.8 .5 3.7 18.6 26.7 24.5 24.5 29.7 31.5 33.3 30.4 29.8 28.4 27.8 Change in business inventories..................... 1.7 -1.6 4.5 6.8 9.6 14.8 8.2 7.6 8.5 7.9 11.3 7.2 1.6 3.1 Nonfarm........................................................ 1.8 -1.4 4.0 6.0 8.6 15.0 7.5 7.5 8.0 7.6 10.8 6.5 .9 2.6 Net exports of goods and services..................... 1.1 .4 1.3 1.8 6.9 5.3 5.2 2.5 1.9 1.3 2.6 2.6 3.5 4.1 Exports............................................................... 7.0 2.4 5.9 13.8 39.2 43.4 46.2 50.6 55.5 57.2 58.3 58.8 61.1 62.8 5.9 2.0 4.6 12.0 32.3 38.1 41.0 48.1 53.6 55.9 55.6 56.2 57.6 58.7 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 137.0 156.8 180.1 200.2 212.2 209.9 214.1 216.3 219.6 218.4 Federal................................................................ 1.3 2.0 16.9 18.4 66.9 77.8 90.7 99.5 101.3 99.8 102.5 102.1 102.3 99.7 National defense.......................................... 13.8 14.1 50.1 60.7 12.A 78.0 78.8 77.9 79.8 78.8 79. 3 76.8 Other............................................................... 3.1 4.3 16.8 17.1 18.4 21.5 22.6 21.9 22.7 23.3 23.0 22.9 State and local.................................................. 7.2 6.0 7.9 19.5 70.1 79.0 89.4 100.7 110.8 110.1 111.6 114.2 117.4 118.7 * Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 617.8 658.1 675.2 707.2 727.1 726.1 730.9 729.2 723.8 724.9 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, July 1968, July 1969, July 1970, and adjusted totals at annual rates. For back data and explanation of series, Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1969 1970 1929 1933 1941 1950 1965 1966 1967 1968 1969 Item II III IV I IIP National incomc.................................................... 86.8 40.3 104.2 241.1 564.3 620.6 653.6 712.7 769.5 764.0 779.5 785.2 791.5 797.7 Compensation of employees................................ 51.1 29.5 64.8 154.6 393.8 435.5 467.2 514.1 564.2 557.5 572.2 582.1 592.2 596 4 Wages and salaries........................................... 50.4 29.0 62.1 146.8 358.9 394.5 423.1 464.8 509.0 502.9 516.4 525.3 534.4 537.4 Private............................................................ 45.5 23.9 51.9 124.4 289.6 316.8 337.3 369.1 404.9 401.2 409.9 417.2 422.6 424.0 Military.......................................................... .3 . ^ 1.9 5.0 12.1 14.6 16.2 17.9 19.0 18.4 19.9 19.6 20.1 19.5 Government civilian.................................... 4.6 4.9 8.3 17.4 57.1 63.1 69.5 77.8 85.1 83.4 86.6 88.5 91.7 93.9 Supplements to wages and salaries................ .7 .5 2.7 7.8 35.0 41.0 44.2 49.3 55.7 54.6 55.8 56.8 57.9 59.0 Employer contributions for social in­ surance ....................................................... . I . 1 2.0 4.0 16.2 20.3 21.9 24.3 27.5 27.3 21.9 28.3 28.6 29.0 Other labor income..................................... .6 .4 .7 3.8 18.7• 20.7 22.3 24.9 27.6 27.3 27.9 28.5 29.3 30.0 Proprietors’ income.............................................. 15.1 5.9 17.5 37.5 57.3 61.3 62.1 64.1 66.8 66.7 67.5 67.2 67.6 67.8 Business and professional.............................. 9.0 3.3 11.1 24.0 42.4 45.2 47.3 49.1 50.5 50.5 50.9 50.6 50.6 51.2 Farm................................................................... 6.2 2.6 6.4 13.5 14.8 16.1 14.8 15.0 16.4 16.2 16.6 16.6 17.0 16.5 Rental income of persons.................................... 5.4 2.0 3.5 9.4 19.0 20.0 21.1 21.3 22.0 22.0 22.1 22.3 22.5 22.6 Corporate profits and inventory valuation adjustment.......................................................... 10.5 -1.2 15.2 37.7 76.1 82.4 78.7 85.4 85.8 87.4 86.8 82.0 76.7 77.8 Profits before tax............................................ 10.0 1.0 17.7 42.6 77.8 84.2 79.8 88.7 91.2 93.4 89.9 88.5 82.6 82.3 Profits tax liability....................................... 1.4 .5 7.6 17.8 31.3 34.3 33.2 40.6 42.7 43.8 42.1 41.4 38.0 38.0 Profits after tax............................................ 8.6 .4 10.1 24.9 46.5 49.9 46.6 48.2 48.5 49.7 47.9 47.1 44.6 44.3 Dividends.................................................. 5.8 2.0 4.4 8.8 19.8 20.8 21.4 23.3 24.7 24.4 25.0 25.2 25.2 25.1 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 26.7 29.1 25.3 24.9 23.9 25.2 22.9 21.9 19.4 19.2 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 -1.7 -1.8 -1.1 -3.3 -5.4 -6.0 -3.2 -6.5 -5.8 -4.5 Net interest............................................................. 4.7 4.1 3.2 2.0 18.2 21.4 24.4 27.8 30.7 30.4 31.0 31.7 32.4 33.1 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table above. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 II III IV I HP Gross national product........................................ 103.1 55.6 124.5 284.8 684.9 749.9 793.9 865.0 931.4 923.7 942.6 951.7 959.5 971.1 Less: Capital consumption allowances.......... 7.9 7.0 8.2 18.3 59.8 63.9 68.9 74.0 78.9 78.2 79.4 80.7 82.1 83.6 Indirect business tax and nontax lia­ bility ....................................................... 7.0 7.1 11.3 23.3 62.5 65.7 70.4 78.1 85.2 84.3 86.6 87.7 89.3 91.1 Business transfer payments................... .6 .7 .5 .8 2.7 3.0 3.1 3.3 3.5 3.5 3.5 3.5 3.6 3.6 Statistical discrepancy............................. .7 .6 .4 1.5 -3.1 -1.0 -.7 -2.4 -4.7 — 5.3 -5.5 -4.3 -5.4 -3.4 Plus: Subsidies less current surplus of gov­ ernment enterprises............................. -.1 .1 .2 1.3 2.3 1.4 .7 1.0 1.1 1.0 1.2 1.6 1.5 Equals: National income..................................... 86.8 40.3 104.2 241.1 564.3 620.6 653.6 712.7 769.5 764.0 779.5 785.2 791.5 797.7 Less: Corporate profits and inventory valu­ ation adjustment.................................. 10.5 -1.2 15.2 37.7 76.1 82.4 78.7 85.4 85.8 87.4 86.8 82.0 76.7 77.8 Contributions for social insurance.... .2 .3 2.8 6.9 29.6 38.0 42.4 47.1 53.6 53.1 54.2 55.1 56.0 56.7 Excess of wage accruals over disburse­ ments ...................................................... 2.5 -2.1 Plus: Government transfer payments............ .9 1.5 2.6 14.3 37.2 41.1 48.7 55.7 61.6 61.0 62.0 63.4 66.3 75.8 Net interest paid by government and consumers............................................. 2.5 1.6 2.2 7.2 20.5 22.2 23.6 26.3 29.0 28.6 29.1 30.2 31.0 31.4 5.8 2.0 4.4 8.8 19.8 20.8 21.4 23.3 24.7 24.4 25.0 25.2 25.2 25.1 Business transfer payments................... .6 .7 .5 .8 2.7 3.0 3.1 3.3 3.5 3.5 3.5 3.5 3.6 3.6 Equals: Personal income.................................... 85.9 47.0 96.0 227.6 538.9 587.2 629.3 688.7 748.9 741.1 758.1 770.5 782.3 801.3 Less: Personal tax and nontax payments___ 2.6 1.5 3.3 20.7 65.7 75.4 83.0 97.5 117.3 118.1 117.5 119.9 117.0 117.7 Equals: Disposable personal income................. 83.3 45.5 92.7 206.9 473.2 511.9 546.3 591.2 631.6 623.0 640.6 650.6 665.3 683.6 Less: Personal outlays....................................... 79.1 46.5 81.7 193.9 444.8 479.3 506.0 550.8 593.9 589.7 598.7 609.6 620.5 632.1 Personal consumption expenditures. 77.2 45.8 80.6 191.0 432.8 466.3 492.1 535.8 577.5 573.3 582.1 592.6 603.1 614.4 Consumer interest payments............. 1.5 .5 .9 2.4 11.3 12.4 13.2 14.3 15.7 15.6 15.8 16.1 16.4 16.8 Personal transfer payments to for­ eigners ................................................ .3 .2 .2 .5 .7 .6 .7 .7 .8 .8 .9 .8 .9 1.0 Equals: Personal saving....................................... 4.2 -.9 11.0 13.1 28.4 32.5 40.4 40.4 37.6 33.3 42.0 41.1 44.8 51.5 Disposable personal income in constant (1958) dollars................................................................. 150.6 112.2 190.3 249.6 435.0 458.9 477.5 499.0 511.5 507.5 515.9 517.8 522.9 532.0 Note.—Dept, of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also Note to table opposite. PERSONAL INCOME (In billions of dollars) 1969 1970 Item 1968 1969 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July* Total personal income............................ 688.7 748.9 752.7 758.5 763.1 766.7 770.6 774.3 777.8 781.5 787.6 806.0 799.7 798.2 801.8 Wage and salary disbursements........... 464.8 509.0 512.3 516.9 520.0 522.7 525.2 528.0 529.5 531.1 535.0 539.9 540.5 538.1 540.0 Commodity-producing industries... 181.5 197.5 198.7 200.0 200.9 201.8 201.9 203.8 202.2 202.0 203.9 202.3 200.9 201.3 201.4 Manufacturing only........................ 145.9 157.5 158.7 159.9 160.4 160.9 160.0 161.6 160.8 160.0 161.3 160.0 159.2 159.5 159.5 Distributive industries....................... 109.2 119.8 120.1 121.6 122.2 123.1 124.1 124.1 125.4 125.7 126.7 126.0 127.2 127.9 128.7 Service industries................................ 78.4 87.7 88.1 88.6 89.6 90.0 91.0 91.6 93.1 94.1 94.6 95.1 95.5 95.7 96.4 Government........................................ 95.7 104.1 105.4 106.7 107.3 107.7 108.1 108.5 108.9 109.3 109.8 116.5 116.9 113.2 113.5 Other labor income................................ 24.9 27.6 27.7 27.9 28.2 28.3 28.5 28.6 29.0 29.3 29.6 29.8 30.0 30.3 30.6 Proprietors’ income................................ 64.1 66.8 67.2 67.5 67.7 67.5 67.1 67.0 67.2 67.6 67.9 67.9 67.8 67.7 67.8 Business and professional................. 49.1 50.5 50.8 50.9 51.0 50.8 50.5 50.4 50.4 50.6 50.7 51.0 51.3 51.5 51.6 Farm..................................................... 15.0 16.4 16.4 16.6 16.7 16.7 16.6 16.6 16.8 17.0 17.2 16.9 16.5 16.2 16.2 Rental income.......................................... 21.3 22.0 22.0 22.1 22.1 22.2 22.3 22.4 22.5 22.5 22.6 22.6 22.6 22.7 22.7 Dividends................................................. 23.3 24.7 24.8 24.9 25.2 25.2 25.3 25.0 25.1 25.2 25.2 25.2 25.3 24.7 25.2 Personal interest income....................... 54.0 59.7 59.7 60.1 60.5 61.2 62.0 62.6 63.0 63.4 63.7 64.2 64.5 64.8 65.2 Transfer payments.................................. 59.0 65.1 65.2 65.5 65.9 66.3 66.9 67.7 68.8 69.7 71.1 84.1 76.6 77.6 78.1 Less: Personal contributions for social insurance.............................................. 22.8 26.0 26.2 26.4 26.5 26.7 26.7 26.9 27.3 27.3 27.5 27.7 27.7 27.6 27.7 Nonagricultural income........................ 668.2 726.7 730.5 736.1 740.6 744.1 747.9 751.6 755.0 758.4 764.3 783.0 777.0 775.7 779.3 Agriculture income.................................. 20.5 22.2 22.2 22.4 22.5 22.6 22.7 22.7 22.8 23.1 23.3 23.0 22.7 22.4 22.5 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 FLOW OF FUNDS a SEPTEMBER 1970 SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1968 1969 1970 Transaction category, or sector 1965 1966 1967 1968 1969 I II III IV I II III IV I Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors.................... 70.4 68.5 82.6 97.4 88.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 80.5 1 2 U.S. Government................................ 1.7 3.5 13.0 13.4 -3.6 20.2 9.3 29.3 -5.4 -5.3 -13.3 3.7 .4 3.5 2 3 Public debt securities..................... 1.3 2.3 8.9 10.3 -1.3 19.3 4.9 24.5 -7.4 -5.7 -12.5 9.4 3.9 5.8 3 4 Budget agency issues....................... .4 1.2 4.1 3.0 -2.4 .9 4.4 4.9 2.0 .4 -.7 -5.7 -3.5 -2.3 4 5 All other nonfinancial sectors.. 68.7 64.9 69.6 84.1 91.9 74.2 72.5 88.7 100.9 94.2 102.0 89.7 81.8 76.9 5 6 Capital market instruments.......... 39.1 39.9 48.0 50.5 53.6 48.4 44.2 50.5 59.0 55.0 55.0 51.7 52.9 52.6 6 7 Corporate equity shares............. .3 .9 2.4 -.7 4.5 1.5 -.4 -1.8 -2.0 .2 3.2 5.3 9.2 6.1 7 8 Debt capital instruments........... 38.8 39.0 45.7 51.2 49.1 46.8 44.6 52.3 61.1 54.7 51.7 46.4 43.6 46.5 8 9 State and local govt, sec........ 7.3 5.7 7.7 9.9 8.5 7.9 5.4 12.5 13.8 10.2 9.8 6.7 7.1 9.2 9 10 Corporate and fgn. bonds... 5.9 11.0 15.9 14.0 13.3 12.6 13.7 13.2 16.5 15.8 13.3 12.8 11.1 14.9 10 11 Mortgages................................. 25.6 22.3 22.0 27.3 27.4 26.3 25.5 26.6 30.8 28.6 28.6 26.8 25.4 22.4 11 12 Home mortgages................. 15.4 11.4 11.6 15.2 15.7 15.0 14.6 14.6 16.6 16.4 16.6 15.6 14.3 11.3 12 13 Other residential.................. 3.6 3.1 3.6 3.5 4.4 3.0 3.1 3.6 4.2 4.2 4.7 4.6 4.3 4.4 13 14 Commercial........................... 4.4 5.7 4.7 6.6 5.2 6.0 5.6 6.6 8.2 5.9 5.1 4.7 5.2 5.1 14 15 Farm...................................... 2.2 2.1 2.1 2.1 2.0 2.4 2.3 1.9 1.8 2.2 2.3 2.0 1.6 1.5 15 16 Other private credit......................... 29.5 25.0 21.6 33.6 38.3 25.9 28.3 38.2 41.8 39.2 47.1 38.0 28.9 24.3 16 17 Bank loans n.e.c........................... 14.2 10.3 9.6 13.4 14.2 6.6 10.9 13.5 22.5 16.4 19.5 11.5 9.7 7.3 17 18 Consumer credit.......................... 10.0 7.2 4.6 11.1 9.3 9.2 9.8 13.2 12.0 9.9 10.4 8.8 8.4 5.6 18 19 Open market paper..................... -.3 1.0 2.1 1.6 3.3 1.1 -1.1 6.2 .2 5.1 3.9 3.2 1.2 5.0 19 20 Other.............................................. 5.7 6.4 5.2 7.5 11.3 8.9 8.8 5.3 7.0 7.9 13.3 14.6 9.6 6.5 20 21 Ilv borroiving sector—................. 68.7 64.9 69.6 84.1 91.9 74.2 72.5 88.7 100.9 94.2 102.0 89.7 81.8 76.9 21 22 Foreign.............................................. 2.6 1.5 4.1 3.0 3.5 4.4 2.0 2.6 2.9 4.2 5.5 2.4 2.1 2.9 22 23 State and local governments........ 7.6 6.4 7.9 10.2 8.9 8.2 5.5 12.8 14.3 10.8 10.1 7.0 7.7 8.8 23 24 Households....................................... 28.8 23.2 19.7 31.8 31.6 29.6 29.4 33.2 34.9 32.2 34.6 31.3 28.6 25.4 24 25 Nonfinancial business..................... 29.6 33.8 37.9 39.1 47.8 32.1 35.6 39.9 48.8 47.1 51.8 49.0 43.4 39.9 25 26 Corporate...................................... 20.5 24. 29.4 31.0 37.8 25.6 26.6 31.1 40.7 37.6 42.3 38.0 33.4 33.2 26 27 Nonfarm noncorporate................ 5.8 5.5 5.0 5.2 6.4 3.1 5.8 6.0 5.8 6.2 5.8 7.3 6.5 4.0 27 28 Farm.............................................. 3 .’3 3.5 3.5 2.9 3.6 3.3 3.2 2.8 2.2 3.2 3.8 3.7 3.5 2.6 28 Funds advanced directly in credit markets 1 Total funds raised................................ 70.4 68.5 82.6 97.4 88.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 80.5 1 Advanced directly by— 2 U.S. Government............................ 2.8 4.9 4.6 5.2 2.6 6.1 7.1 4.8 2.9 2.3 1.6 3.7 2.8 2.6 2 3 U.S. Govt, credit agencies, net... ♦ .3 .5 -.2 .1 .5 -.1 -.5 -.8 -.2 -.4 -.2 .5 .9 3 4 Funds advanced........................... 2.2 5.1 -.1 3.2 8.9 6.0 4.0 1.2 1.7 3.9 7.1 10.7 13.1 15.6 4 5 Less funds raised in cr. mkt.... 2.3 4.8 -.6 3.5 8.8 5.6 4.1 1.7 2.5 4.1 7.5 10.9 12.6 14.7 5 6 Federal Reserve System................. 3.8 3.5 4.8 3.7 4.2 4.3 6.3 7.2 -2.9 3.1 5.0 -.4 9.2 1.3 6 7 Commercial banks, net.................. 28.3 16.7 36.8 39.0 9.4 19.5 22.8 66.7 47.1 9.2 24.7 1.1 3.1 5.3 7 8 Funds advanced........................... 29.1 16.8 37.0 39.2 13.7 19.4 23.5 66.9 47.0 10.1 29.2 6.2 9.9 14.4 8 9 Less funds raised......................... .8 .1 .2 .2 4.3 * .7 .2 -.1 .9 4.5 5.0 6.8 9.1 9 10 Private nonbank finance................ 30.1 25.9 36.1 33.5 30.9■ 33.8 34.7 32.7 33.0 31.3 34.7 30.5 28.0 24.5 10 11 Savings institutions, net............. 13.7 7.8 16.9 14.5 10.3 15.4 15.7 14.2 12.6 15.7 13.5 6.6 5.6 4.5 11 12 Insurance...................................... 17.9 19.3 20.4 21.5 22.3 21.6 21.1 20.4 22.9 20.3 22.6 27.0 19.1 22.0 12 13 Finance n.e.c., net....................... -1.4 -1.3 -1.3 -2.4 -1.7 -3.3 -2.1 -1.9 -2.5 -4.8 -1.4 -3.0 3.2 -1.9 13 14 Foreign.............................................. -.3 -1.8 2.8 2.5 2.0 -.5 -2.3 3.1 9.4 -1.4 1.3 6.0 2.0 7.0 14 15 Private domestic nonfinancial.... 5.6 19.1 -2.9 13.7 39.0 30.9 13.4 4.0 6.7 44.7 21.8 52.7 36.6 38.8 15 16 Business........................................ 1.0 3.6 -.6 9.0 11.4 10.6 10.4 8.6 6.4 13.2 12.6 12.2 7.1 15.2 16 17 State and local governments. .. 2.5 3.4 1.2 .7 7.2 .6 -1.9 3.1 .9 6.5 4.1 4.9 13.4 3.2 17 18 Households................................... 2.5 11.9 -1.3 5.4 18.8 16.4 9.3 -7.0 2.9 22.2 5.0 32.3 16.0 15.1 18 19 Less net security credit.............. .3 -.2 2.2 1.4 -1.6 -3.3 4.5 .7 3.6 -2.7 -.2 -3.2 -.2 -5.3 19 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors.................... 70.4 68.5 82.6 97.4 88.2 94.4 81.8 118.0 95.5 88.9 88.8 93.4 82.2 80.5 1 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total................................................... 46.3 42.8 47.7 58.1 40.4 63.3 47.7 58.0 63.3 48.8 28.8 36.5 46.0 49.7 2 3 Deposits........................................ 40.7 23.7 50.6 44.3 1.4 32.4 34.3 53.9 56.6 4.1 6.9 -16.1 9.4 10.9 3 4 Demand dep. and currency.. 8.0 4.0 11.6 11.2 5.5 2.7 15.5 11.0 15.8 -2.8 4.1 * 19.1 -2.7 4 5 Time and svgs. accounts.... 32.7 19.7 39.1 33.1 -4.1 29.7 18.9 43.0 40.8 6.9 2.8 -16.2 -9.7 13.6 5 6 At commercial banks. . . 19.5 12.5 22.3 20.5 — 12.0 16.7 6.4 31.2 27.5 -6.1 -6.3 —22.1 -13.6 9.4 6 7 At savings instit................ 13.1 7.2 16.7 12.6 8.0 13.0 12.4 11.8 13.3 13.0 9.1 5.9 3.9 4.2 7 8 Credit mkt. instr., net................ 5.6 19.1 -2.9 13.7 39.0 30.9 13.4 4.0 6.7 44.7 21.8 52.7 36.6 38.8 8 9 U.S. Govt, securities............... 2.5 8.5 -2.8 8.9 15.8 14.6 4.5 6.9 9.6 24.7 -.9 26.3 13.4 4.7 9 10 Pvt. credit market instr........... 3.5 10.4 2.0 6.2 21.6 13.0 13.4 -2.2 .7 17.3 22.5 23.2 23.0 28.8 10 11 Less security debt................... .3 -.2 2.2 1.4 -1.6 -3.3 4.5 .1 3.6 -2.7 -.2 -3.2 -.2 -5.3 11 Other sources: 12 Foreign funds................................... .8 .7 5.0 4.0 10.4 2.1 1.8 7.1 4.9 12.7 14.4 11.9 2.6 8.6 12 13 At banks........................................ 1.1 2.5 2.2 1.5 8.4 2.6 4.1 4.0 -4.5 14.1 13.1 5.9 .6 1.6 13 14 Direct............................................ -.3 -1.8 2.8 2.5 2.0 -.5 -2.3 3.1 9.4 -1.4 1.3 6.0 2.0 7.0 14 15 Chg. in U.S. Govt, cash bal.......... -1.0 -.4 1.2 -1.2 .4 -5.4 -16.2 26.4 -9.6 -6.4 2.1 1.5 4.1 .4 15 16 U.S. Government loans................. 2.8 4.9 4.6 5.2 2.6 6.1 7.1 4.8 2.9 2.3 1.6 3.7 2.8 2.6 16 17 Pvt. insur. and pension res............ 15.7 16.7 18.7 18.2 18.7 16.4 17.5 19.1 19.6 16.7 18.6 22.2 17.3 18.8 17 18 Sources n.e.c..................................... 5.8 3.8 5.6 13.2 15.7 11.8 24.0 2.7 14.4 14.8 23.4 17.6 9.4 .3 18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ FLOW OF FUNDS A 71 PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1968 1969 1970 Transaction category, or sector 1965 1966 1967 1968 1969 III IV II III IV Demand deposits and currency 1 Net incr. in banking system liability. 7.6 2.6 14.3 10.7 6.6 -3.7 .1 39.2 7.2 -10.1 7.3 3.2 24.2 -1.7 2 U.S. Government deposits.......... -1.0 -.4 1.1 -1.3 .5 -5.6 -16.2 26.3 -9.7 -6.3 2.1 1.6 4.3 .7 3 Money supply................................ 8.6 3.0 13.2 12.0 6.1 1.9 16.3 12.9 16.9 -3.9 5.1 1.6 19.9 -2.3 4 Domestic sectors....................... 8.3 3.9 12.6 12.2 5.9 1.3 17.0 13.5 17.1 -4.1 5.1 .9 20.1 -2.9 5 Households............................. 7.2 3.1 11.4 6.9 3.4 -10.2 8.8 15.6 13.5 -7.9 5.6 -1.5 17.3 5.7 6 Nonfinancial business.......... -1.4 .7 -2.1 1.3 .5 7.1 3.6 -1.2 -4.3 3.8 .6 -1.7 -1.1 -8.9 7 State and local governments -.2 -.1 -.4 1.1 2.2 .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 1.6 2.6 1.3 -1.3 1.0 .8 1.0 -.3 9 Mail float................................ 2.5 .3 2.7 1.9 -.6 5.2 1.5 -1.5 2.4 -.6 -.3 -1.3 -1.0 1.3 10 Rest of the world...................... .3 -1.0 .6 -.2 .2 .6 -.7 -.7 -.2 .2 .7 -.2 .6 Time and savings accounts 1 Net increase—Total......................... 33.1 20.2 40.8 33.0 -3.0 29.2 19.1 43.8 39.9 6.5 .6 -15.7 -3.6 18.0 2 At commercial banks—Total. . 20.0 13.3 23.8 20.6 -11.0 16.3 6.1 32.3 27.5 -6. -7.9 -21.5 -7. 12.8 3 Corporate business................. 3.9 -.7 4.1 2.2 -7.8 -1.8 -3.2 9.5 4.1 -7.2 -7.6 -10.8 -5.6 -.4 4 State and local governments. 2.4 1.3 2.4 3.2 -7.5 .8 1.3 5.2 5.7 -5.4 -4.0 -10.4 -10.0 1.8 5 Foreign...................................... .6 .8 1.4 * 1.2 -.7 -.4 1.0 -.1 -.4 -1.4 .7 6.0 3.7 6 Households............................... 13.3 11.9 15.8 15.1 3.3 17.6 8.3 16.5 17.8 6.6 5.4 -.8 2.0 7.9 7 At savings institutions............... 13.1 7.0 17.0 12.4 8.0 12.9 12.9 11.5 12.4 13.4 8.5 5.8 4.2 5.1 Liabilities— 8 Savings and loan assns.. .. 8.5 3.6 10.7 7.3 4.0 7.7 7 7.2 6 8.0 4.6 3.0 .5 1.9 8 9 Mutual savings banks........ 3.6 2.6 5.1 4.1 2.6 4.4 4.0 3.4 4.5 3.8 2.7 1.5 2.4 1.6 9 10 Credit unions....................... 1.0 1.2 1.1 1.4 .9 1.3 .9 1.2 1.6 1.2 1.3 1.4 1.6 10 Assets 11 Households........................... 13.1 7.2 16.7 12.6 8.0 13.0 12.4 11.8 13.3 13.0 9.1 5.9 3.9 4.2 12 Cr. union deps. at S & L’s. -.2 .3 -.2 -.1 .5 -.3 -1.0 .3 -.6 -. 1 .3 .9 U.S. Government securities 1 Total net issues................................. 3.8 8.7 12.6 16.7 5.5 25.5 13.1 31.2 -3.2 .1 -5.7 14.7 13.1 18.3 1 2 Household savings bonds .6 .6 .9 .5 -.4 .2 .3 .8 .7 -.5 -.4 -.7 .1 -.9 2 3 Direct excluding savings bonds .7 1.8 8.0 9.8 -.9 19.1 4.6 23.7 -8.1 -5.2 -12.1 10.1 3.8 6.7 3 4 Budget agency issues.................. * * .2 1.4 -.4 -.2 1.9 1.4 2.7 .8 -1.3 -.8 -.2 .7 4 5 Sponsored agency issues............ 2.1 5.1 -.6 3.2 9.1 5.2 3.7 1.8 2.1 5.2 7.5 10.9 12.6 14.7 5 6 Loan participations.................... .4 1.3 4.0 1.7 -1.9 1.2 2.6 3.5 -.6 -.3 .6 -4.8 -3.2 -3.0 6 7 Net acquisitions, by sector............ 3.8 8.7 12.6 16.7 5.5 25.5 13.1 31.2 -3.2 .1 -5.7 14.7 13.1 18.3 7 8 U.S. Government (agency sec.) * 1.3 -.1 . 1 -1.3 -.1 1.6 -.1 -1.0 -1.1 -2.2 -.8 -1.0 .1 8 9 Sponsored credit agencies......... . 1 1.0 * -. 1 -.4 . 1 .3 -.4 -.5 -2.1 -.1 -.3 .3 3.9 9 10 Direct marketable................... -.2 .3 .9 -. 1 -.7 -.5 .2 .1 -.2 -2.1 -.1 -.6 -.6 4.3 10 11 FHLB special issue................. .3 .6 -.9 .3 .6 . 1 -.5 -.3 * * .3 .8 -.4 11 12 Federal Reserve System............. 3.7 3.5 4.8 3.8 4.2 4.5 6.2 7.4 -2.8 3.2 5.0 -.4 9.1 1.2 12 13 Foreign.......................................... -.2 -2.4 2.1 -.5 -1.1 -2.0 -4.7 .6 4.2 -6.2 -1.1 3.6 -.5 6.1 13 14 Commercial banks..................... -2.3 -3.6 9.4 2.8 -11.2 4.2 -2.2 12.2 -3.1 -15.2 -10.7 -10.3 -8.1 2.7 14 15 Direct........................................ -3.1 -3.4 6.3 t. 7 -9.4 3.5 -1.8 9.8 -4.9 -12.5 —11.3 -6.1 -7.1 1.9 15 16 Agency issues........................... .8 -.2 3.2 1.1 -1.8 .7 -.4 2.4 1.7 -2.7 .5 -4.1 -.9 .8 16 17 Nonbank finance......................... -. 1 .4 -.9 1.6 -.5 4.1 7.4 4.5 -9.7 -3.1 4.4 -3.3 -. 1 -.3 17 18 Direct........................................ -.6 . -.2 -1.3 .3 -2.3 1.5 6.5 3.1 -10.0 -5.9 2.3 -5.9 .1 -2.9 18 19 Agency issues........................... .5 .5 .3 1.3 1.8 2.5 .9 1.4 .3 2.8 2.0 2.6 -.2 2.6 19 20 Pvt. domestic nonfin................... 2.5 8.5 -2.8 8.9 15.8 14.6 4.5 6.9 9.6 24.7 -.9 26.3 13.4 4.7 20 21 Savings bonds—Households. .6 .6 .9 .5 -.4 .2 .3 .8 .7 -.5 -.4 -.7 .1 -.9 21 22 Direct excl. savings bonds. .. .7 3.3 -3.8 4.6 8.1 11.4 -1.9 3.1 5.8 18.3 -7.0 19.3 2.0 -3.4 22 23 Agency issues........................... 1.2 4.7 .2 3.8 8.1 3.0 6.1 3.1 3.1 6.9 6.5 7.7 11.3 9.0 23 Private securities 1 Total net issues, by sector............. 16.1 18.5 27.2 24.2 27.9 22.9 20.2 24.8 29.0 27.8 28.8 26.2 28.7 31.7 1 2 State and local governments.. 7.3 5.7 7.7 9.9 8.5 7.9 5.4 12.5 13.8 10.2 9.8 6.7 7.1 9.2 2 3 Nonfinancial corporations. 5.4 11.4 17.0 12.1 16.4 12.8 12.8 10.3 12.4 14.7 14.9 16.1 19.8 20.2 3 4 Finance companies................... 1.9 .8 1.0 .8 1.6 .9 .8 .7 .9 1.4 2.2 1.4 1.3 1.3 4 5 Commercial banks.................... .8 . 1 .2 .2 . 1 * .7 .2 -.1 .1 .3 * -.1 .2 5 6 Rest of the world...................... .8 .5 1.3 1.3 1.4 1.4 .5 1.1 2.0 1.4 1.6 2.0 .5 .8 6 7 Net purchases................................. 16.1 18.5 27.2 24.2 27.9 22.9 20.2 24.8 29.0 27.8 28.8 26.2 28.7 31.7 7 8 Households................................. 1.1 3.2 -2.9 -3.3 4.4 7.7 -.1 -12.1 -8.9 4.4 1.8 5.7 5.9 2.7 8 9 Nonfinancial corporations.... .5 1.0 -.4 .4 2.3 .8 2.1 -2.6 1.3 2.4 2.7 .2 3.7 2.3 9 10 State and local governments.. .6 1.1 1.5 .5 2.9 -.4 1.0 .3 1.0 3.8 3.7 -1.2 5.0 4.5 10 11 Commercial banks.................... 5.0 1.9 9.7 9.0 1.0 5.2 3.2 12.6 15.2 2.6 3.3 1.0 -2.7 6.1 11 12 Mutual savings banks.............. * .3 2.3 1.6 .6 2.0 1.3 1.5 1.8 1.1 1.1 * .2 1.2 12 13 Insurance and pension funds.. 11.2 12.9 17.4 17.5 17.3 16.2 17.1 17.3 19.3 17.0 17.5 19.8 14.8 15.7 13 14 Finance n.e.c............................... -1.7 -2.2 -1.0 -3.6 -2.6 -9.6 -6.4 5.7 -4.2 -7.4 -2.0 * -1.0 -1.1 14 15 Security brokers and dealers -. 1 .1 . 1 -.9 .4 -1.3 -7.4 9.0 -3.6 .3 -.9 3.4 -1.4 -.2 15 16 Investment companies, net.. -1.5 -2.4 -1.1 -2.8 -3.0 -8.3 1.0 -3.3 -.6 -7.8 -1.1 -3.4 .4 -1.0 16 17 Portfolio purchases........... 1.6 1.4 1.5 1.9 2.7 -1.4 3.4 1.4 4.2 -.2 3.6 2.7 4.6 1.3 17 18 Net issues of own shares. 3.1 3.7 2.6 4.7 5.6 6.8 2.4 4.7 4.9 7.6 4.7 6.1 4.2 2.3 18 19 Rest of the world..................... -.5 .3 .6 2.2 2.0 1.0 2.1 2.1 3.6 3.9 .7 .7 2.7 .6 19 Bank loans n.e.c. 1 Total net borrowing........ 16.6 9.0 7.5 15.7 16.4 8.1 13.6 16.2 24.9 17.3 24.3 12.2 11.7 2.7 1 2 Households.................. 1.4 •4 2.1 3.0 2.0 2.1 2.6 2.9 4.6 2.1 3.5 1.5 1.0 3.1 2 3 Nonfinancial business 12.3 10.1 7.7 10.6 12.5 4.7 8.3 10.8 18.7 13.9 15.5 11.4 9.2 3.5 3 4 Rest of the world .4 -.2 -.2 -.3 -.3 -.3 * -.3 -.7 .3 .5 -1.4 -.5 .8 4 5 Financial sectors 2.4 -1.3 -2.1 2.3 2.1 1.5 2.8 2.7 2.4 1.0 4.8 .7 2.1 -4.6 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ SEPTEMBER 1970 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1969 1970* Item 1968 1969 I II 111 IV I Transactions other than changes in foreign liquid assets in U.S: and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total 1 50,622 55,514 11,948 14,291 14,565 14,712 15,276 Merchandise..................................................................... 33,588 36,473 7,472 9,585 9,581 9,835 10,200 Military sales.................................................................... 1,395 1,515 391 313 458 352 284 Transportation................................................................. 2,969 3,131 660 827 843 803 840 Travel................................................................................. 1,775 2,058 501 520 519 518 559 Investment income receipts, private........................... 6,922 7,906 1,861 1,919 2,043 2,083 2,237 Investment income receipts, Govt............................... 765 932 228 231 243 231 252 Other services................................................................... 3,208 3,498 835 896 878 890 904 Imports of goods and services—Total............................. -48,129 -53,564 -11,618 -13,978 -13,909 -14,061 -14,391 Merchandise..................................................................... -32,964 -35,835 -7,576 -9,606 -9,263 -9,390 -9,685 Military expenditures..................................................... -4,535 -4,850 -1,198 -1,187 -1,220 -1,245 -1,205 Transportation................................................................. -3,269 -3,608 -775 -907 -960 -967 -938 Travel................................................................................. -3,022 -3,390 -820 -855 -875 -840 -873 Investment income payments........................................ -2,933 -4,463 -905 -1,071 -1,240 -1,247 -1,329 Other services................................................................... -1,406 -1,419 -344 -352 -351 -372 -361 Balance on goods and services1........................................ 2,493 1,949 330 313 656 651 885 Remittances and pensions................................................... -1,121 -1,190 -270 - 294 -318 -309 -330 1. Balance on goods, services, remittances and pen­ sions ................................................................................ 1,372 759 60 19 338 342 555 2. U.S. Govt, grants and capital flow, net...................... -3,975 -3,828 -777 -1,159 -1,022 -870 -837 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims.............. -5,359 -5,032 -1,118 -1,519 -1,213 -1,183 -1,259 Scheduled repayments on U.S. Govt, loans......... 1,114 1,291 297 326 345 324 334 * Nonscheduled repayments and selloffs................... 269 -87 44 34 3-154 3-11 88 3. U.S. private capital flow, net........................................ -5,412 -5,374 -1,213 -2,151 -980 -1,030 -1,557 Direct investments...................................................... -3,209 -3,070 -902 -1,015 -877 -276 -1,304 Foreign securities........................................................ -1,254 -1,494 -319 - 539 -567 -69 -159 Other long-term claims reported by— Banks......................................................................... 358 330 133 31 131 35 26 Others........................................................................ -220 -424 -82 -80 -13 -249 -338 Short-term claims reported by— Banks......................................................................... -105 -871 -65 -533 98 -371 130 Others........................................................................ -982 155 22 -15 248 -100 88 4. Foreign capital flow, net, excluding change in liquid assets in the United States..................................... 8,701 4,146 1,774 413 311 1,650 409 Long-term investments.............................................. 6,029 3,910 1,841 414 428 1,227 750 Short-term claims........................................................ 759 140 -83 65 113 45 -9 Nonliquid claims on U.S. Govt, associated with— Military contracts................................................... -105 156 -65 84 -91 229 -55 U.S. Govt, grants and capital.............................. 2 -16 -4 -7 -5 * -9 Other specific transactions.................................... 6 -2 -10 28 -20 -1 -26 Other nonconvertible, nonmarketable, mediumterm U.S. Govt, securities4.................................. 2,010 -41 95 -171 -115 150 -242 5. Allocation of Special Drawing Rights......................... 217 6. Errors and unrecorded transactions............................. -514 -2,924 -1,196 -922 -927 121 -337 Balances5 A. Balance on liquidity basis Seasonally adjusted (Equals sum of items 1-6.)... 171 -7,221 -1,352 -3,801 -2,279 211 «-l,765 -1,548 Less: Net seasonal adjustments............................... -84 15 693 -624 -90 -740 Before seasonal adjustment....................................... 171 -7,221 -1,268 -3,816 -2,972 835 -1,675 -808 B. Balance on basis of official reserve transactions Balance A, seasonally adjusted................................ 171 -7,221 -1,352 -3,801 -2,279 211 -1,765 -1,548 Plus: Seasonally adjusted change in liquid assets in the United States of— Commercial banks abroad.................................... 3,387 9,434 2,952 4,805 1,311 366 -1,717 -1,717 Other private residents of foreign countries. . . 375 -441 -22 -145 -143 -131 -167 -167 International and regional organizations other than IMF............................................................ 48 -60 -88 82 12 -66 154 154 Less: Change in certain nonliquid liabilities to foreign central banks and govts.......................... 2,340 -996 37 -374 -517 -142 -425 -425 Balance B, seasonally adjusted................................. 1,641 2,708 1,453 1,315 -582 522 -3,070 -2,853 Less: Net seasonal adjustments............................... -258 111 458 -311 -262 -912 Before seasonal adjustment........................................ 1,641 2,708 1,711 1,204 -1,040 833 -2,808 -1,941 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 a U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS— Continued (In millions of dollars) 1969 1970p Item 1968 1969 I II III IV I Transactions by which balances were settled—Not seasonally adjusted5 A. To settle balance on liquidity basis............................. -171 7,221 1,268 3,816 2,972 -835 1,675 808 Change in U.S. official reserve assets (in­ crease, —)................................................................. -880 -1,187 -48 -299 -686 -154 481 -386 Gold........................................................................... 1,173 -967 56 -317 -11 -695 -44 -44 SDR’s........................................................................ -53 -920 IMF gold tranche position.................................... -870 -1,034 -31 -228 -233 -542 -253 -253 Convertible currencies............................................ -1,183 814 -73 246 -442 1,083 831 831 Change in liquid liabilities to all foreign accounts.. 709 8,408 1,316 4,115 3,658 -681 1,194 1,194 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt. securities7......................................................... -10 -163 -25 -10 84 -212 -126 -126 Marketable U.S. Govt, bonds and notes7... -379 -79 -3 * -9 -67 -3 -3 Deposits, short-term U.S. Govt, securities, etc....................................................................... -2,709 -272 -1,681 -525 2,169 -235 2,882 2,882 IMF (gold deposits)............................................... -3 -11 1 -3 -9 -9 -9 Commercial banks abroad.................................... 3,387 9,434 3,134 4,716 1,554 30 -1 ,537 -1,537 Other private residents of foreign countries.... 375 -441 -22 -145 -143 -131 -167 -167 International and regional organizations other than IMF.............................................................. 48 -60 -88 82 12 -66 154 154 B. Official reserve transactions.......................................... -1,641 -2,708 -1,711 -1,204 1,040 -833 2,808 1,941 Change in U.S. official reserve assets (in­ crease, —)................................................................. -880 -1 ,187 -48 -299 -686 -154 481 -386 Change in liquid liabilities to foreign central banks and govts., and IMF (see detail above under A.)................................................................... -3,101 -525 -1,708 -538 2,235 -514 2,744 2,744 Change in certain nonliquid liabilities to foreign central banks and govts, of — U.S. private organizations................................ 534 -834 -43 -195 -390 -206 -159 -159 U.S. Govt.............................................................. 1 ,806 -162 88 -172 -119 41 -258 -258 1 Excludes transfers under military grants. 6 Equals sum of items 1-4 plus 6. 2 Excludes military grants. 7 With original maturities over 1 year. 3 Negative entry reflects repurchase of foreign obligations previously sold. Note.—Dept, of Commerce data. Minus sign indicates net payments 4 Includes certificates sold abroad by Export-import Bank. (debits); absence of sign indicates net receipts (credits). Details may not 5 The first column shown for 1970-1 excludes, and the second column add to totals because of rounding. includes, initial allocation by the IMF of $867 million of SDR’s. For purposes of seasonal adjustment the allocation is accounted for at the rate of $217 million per quarter. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Export surplus 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 3,450 2.198 32,604 33,173 3,248 410 251 180 202 May. . 2,549 2,740 33.296 3,695 2,118 2,755 33,276 3,361 432 -15 20 334 June. . 2.582 2,870 33,211 3,776 2,184 2,792 33,186 3,310 398 78 25 466 July. . 2,601 2,858 3,169 3,683 2,245 2,725 3,066 3,242 357 133 103 441 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 I I 7,739 8,465 9,860 10,921 6,500 8,151 9,635 9,918 1,240 314 225 1,003 III.... 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 □ SEPTEMBER 1970 3. U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1969 1970 Area and country 1961 1962 1963 1964 1966 1967 1968 1969 III IV Western Europe: Austria................................ -143 -82 -55 -100 -25 Belgium............................... -63 -40 -83 -58 France................................. -456 — 5 i 8 -405 -884 -60i 600 325 275 Germany, Fed. Rep. of. . -23 -225 500 500 Ireland................................. -1 -2 -2 -52 41 16 25 Italy....................................... 100 200 -80 -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 Bank for Intl. Settlements, -23 200 200 Other..................................... -53 -12 -35 -49 16 -47 1 U7 -7 Total. -754 -1,105 -399 -1,299 -659 -980 -669 969 292 721 Canada........ 190 200 150 50 Latin American republics: Argentina......................... -25 -25 -10 -15 -5 Brazil................................. Colombia......................... '- i Venezuela......................... Other................................. ■-17 -11 -29 ’ -i Total. -109 175 32 17 -41 -54 -5 -9 Asia: Iraq................. -10 -4 -21 -42 Japan.............. -56 Lebanon........ -32 -11 - i -95 Malaysia........ -1 -34 Philippines.. . 25 -1 9 40 17 11 i Saudi Arabia. -48 -13 -50 Singapore.... -81 Other.............. -32 — 47 -13 -14 -14 -75 '-i ‘223 Total................... -101 -93 12 3 -24 -86 -44 -366 10 24 -1 All other......................... -6 -1 -36 -7 -16 -22 3-166 3-68 -1 -1 -2 Total foreign countries. -970 -833 -392 -36 -1,322 -608 1,031 -1,118 957 316 695 -14 Intl. Monetary Fund4. 150 5-225 177 22 -3 10 1 Grand total.... -820 -833 -392 -36 -1,547 -431 -1,009 -1,121 967 317 10 695 -14 1 Includes purchase from Denmark of $25 million. IMF sold to the United States a total of $800 million of gold ($200 2 Includes purchase from Kuwait of $25 million. million in 1956, and $300 million in 1959 and in 1960) with the right of 3 Includes sales to Algeria of $150 million in 1967 and $50 million in repurchase; proceeds from these sales invested by IMF in U.S. Govt, 1968. securities. 4 Includes IMF gold sales to the United States, gold deposits by the 5 Payment to the IMF of $259 million increase in U.S. gold subscription, IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The first less gold deposits by the IMF. withdrawal, amounting to $17 million, was made in June 1968. 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 purchase in foreign currencies automatically if needed. Under appropriate conditions, the United States could pur­ 2 Positive figures represent purchases from the IMF of currencies of chase 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 purchases 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 repurchase within 3 to 5 years, but only to scription was included in the U.S. gold stock and excluded from the the extent that the holdings of dollars of the IMF exceed 75 per cent of reserve position. the U.S. quota. Purchases of dollars by other countries reduce the U.S. commitment to repurchase 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

SEPTEMBER 1970 a 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 l2 ld st T o r c e k a 1 sury v c fo u e C c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e E m n o d n t o h f Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e u C c r r i r o e t e r i i e n s b g 5 n ­ l n e ­ p R I o e M s s i i n e t F r i o v 3 n e D R S r p i a g e w h c i i t a n s l 6 g 1957............... 24,832 22,857 22,781 1,975 1969—Aug.... 16,195 11,154 10,367 3,399 1,642 1958............... 22,540 20,582 20,534 1,958 Sept.... 16,743 11,164 10,367 3,797 1,782 1959............... 21,504 19,507 19,456 1,997 Oct.. . . ^16,316 11,190 10,367 73,341 1,785 1960............... 19,359 17,804 17,767 1,555 Nov.... 16,000 11,171 10,367 2,865 1,964 Dec.. .. 16,964 11,859 10,367 2,781 2,324 1961............... 18,753 16,947 16,889 116 1,690 1962............... 17,220 16,057 15,978 99 1,064 1970—Jan.. . . 17,396 11,882 11,367 2,294 2,321 899 1963............... 16,843 15,596 15,513 212 1,035 Feb.... 17,670 11,906 11,367 2,338 2,507 919 1964............... 16,672 15,471 15,388 432 769 Mar__ 17,350 11,903 11,367 1,950 2,577 920 1965............... 15,450 413,806 413,733 781 4863 Apr.. .. 16,919 11,902 11,367 1,581 2,510 926 May. .. 16,165 11,900 11,367 980 2,360 925 1966............... 14,882 13,235 13,159 1,321 326 June. . . 16,328 11,889 11,367 1,132 2,350 957 1967............... 14,830 12,065 11,982 2,345 420 July. . . 16,065 11,934 11,367 716 2,454 961 1968............... 15,710 10,892 10,367 3,528 1,290 Aug---- 15,796 11,817 11,367 695 2,323 961 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 The United States has the right to purchase foreign currencies equiva­ 7 Includes gain of $67 million resulting from revaluation of the German lent to its reserve position in the IMF automatically if needed. Under ap­ mark in Oct. 1969, of which $13 million represents gain on mark holdings propriate conditions the United States could purchase additional amounts at time of revaluation. 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 U.S. other countries reserve Period with IMF position P s t u a d io y b o n m o s ll c s f a e r r i i n s n p t s ­ by s g N I a o M l e e ld 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 2 i n n c ­ ­ I i d M n o c F i l o n l a m n rs e e t P d u o rc l o l h a f a r s s e 3 s pur R ch e a ­ ses c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( i e n e r n i I o d M d o ) F f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 ,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—Aug.. -36 20 -16 3,518 68 1,642 Sept.. "\Y -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 May. 150 150 2,800 54 2,360 June. -2 7 10 2,810 54 2,350 July.. -139 33 -104 2,706 52 2,454 Aug.. -20 150 131 2.837 55 2,323 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. □ SEPTEMBER 1970 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreigrl 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 i m in G e v o n e l t s d t 2 ­ Total i p S t l i t i o e h e a r s r b o t m e i r r l t d e ­ ­ ­ 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 a U i n r a b b e v . r l S l a k e e e s . r e ­ t t ­ ­ Total i p S t l i t i o e h e a r s r b o t m e i r r l t d e ­ ­ ­ 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 e i r r l t d e ­ ­ ­ M b G U a o a o b n . r S v l 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 5,724 542 1958............ 716,845 200 200 8,665 5,950 552 1959............ 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 19608.......... /20,994 800 800 11,078 10,212 866 7,591 7,048 543 1,525 750 775 \21,027 800 800 11,088 10,212 876 7,598 7,048 550 1,541 750 791 1961 8 / \ 2 2 2 2 , , 8 9 5 3 3 6 8 8 0 00 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 94 40 0 8 8 9 9 0 0 8 8 , , 3 2 5 75 7 7 7, , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 , , 9 9 4 4 9 8 7 70 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 \24,068 800 800 12,714 11,963 751 8,359 7,911 448 2,195 1,284 911 11 VQDAj1 0ft.......... / \ 2 2 6 6 , , 3 3 6 2 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 4 4 , , 3 3 5 8 3 7 1 1 2 2 , , 4 4 6 6 7 7 1 1 , , 1 2 8 1 3 7 7 70 0 3 3 9 9 , , 2 2 0 1 4 4 8 8, , 8 8 6 63 3 3 3 4 5 1 1 1 1 , , 9 9 6 6 5 0 8 8 0 08 8 1 1 , , 1 1 5 5 7 2 1 QA4 8 (28,951 800 800 15,428 13,224 1,125 1,079 111 ,001 10,625 376 1,722 818 904 129,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965............ 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1 Q££ ft /29,904 1 ,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 129,779 1 ,011 211 800 13,655 12,539 860 256 14,208 13,680 528 905 580 325 1 Q67 ft /33,271 1,033 233 800 15,653 14,034 908 711 15,894 15,336 558 691 487 204 133,119 1 ,033 233 800 15,646 14.027 908 711 15,763 15,205 558 677 473 204 1 Q£8 9 /33,82I 1,030 230 800 12,548 11,318 529 701 19,518 18,909 609 725 683 42 \33,614 1,030 230 800 12,481 11,3 J 8 462 701 19,381 18,916 465 722 683 39 1969-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 11,039 9,839 450 750 28,821 28,329 492 731 682 49 Sept... 42,703 1,019 219 800 12,481 11,281 450 750 28,475 27,943 532 728 679 49 Oct.. . 1043,119 1,019 219 800 1012,686 11,611 333 10742 28,731 28,190 541 683 634 49 Nov. r 42,855 1,019 219 800 12,014 11,128 331 555 29,103 28,559 544 719 669 50 (41,830 1,019 219 800 11,992 11,054 383 555 28,157 27,628 529 662 612 50 Dec. 8r ( 41,918 1,019 219 800 11,992 11,054 383 555 28,245 27,716 529 662 612 50 1970-Jan.'.. 42,602 1,019 219 800 12,675 11,863 383 429 28,175 27,644 531 733 683 50 Feb.r. 43,038 1,010 210 800 14,022 13,213 380 429 27,190 26,706 484 816 766 50 Mar.r. 42,933 1 ,010 210 800 14,763 13,954 380 429 26,356 25,880 476 804 754 50 Apr.r. 43,404 1,010 210 800 14,409 13,600 380 429 27,215 26,730 485 770 719 51 May.. 43,321 1,010 210 800 14,787 13,976 382 429 26,820 26,319 501 704 653 51 June*. 43,322 1,010 210 800 15,289 14,463 397 429 26,343 25,807 536 680 628 52 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. 10 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 IM F “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

SEPTEMBER 1970 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 77 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 Canada A re m p L u 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 19683.............................................................................................. / 12,548 7,009 533 1,354 3,168 259 225 \ 12,481 7,001 532 1,354 3,122 248 224 1969—June.................................................................................... 10,237 5,298 461 1,248 2,727 232 271 July..................................................................................... 9,980 5,132 426 1,292 2,616 238 276 Aug..................................................................................... 11,039 5,907 451 1,392 2,788 255 246 Sept..................................................................................... 12,481 7,385 397 1,339 2,871 270 219 Oct...................................................................................... 412,686 47,400 425 1,485 2,853 322 201 Nov..................................................................................... 12,014 6,234 446 1,417 3,104 570 243 Dec.r.................................................................................. 11,992 5,860 495 1,679 3,190 546 222 1970—Jan.'................................................................................... 12,675 6,291 600 1,743 3,313 533 195 Feb.'.................................................................................. 14,022 7,251 662 1,893 3,331 702 183 Mar.'................................................................................. 14,763 7,394 590 2,091 3,780 705 203 Apr.'.................................................................................. 14,409 6,942 733 2,096 3,668 725 245 May.................................................................................... 14,787 7,310 762 2,057 3,632 744 282 Junep.................................................................................. 15,289 8,059 500 2,098 3,571 710 351 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short-term liabilities to the official institutions 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible nonmarketable U.S. Govt, 3 See note 9 to Table 6. securities with an original maturity of more than 1 year. 4 Includes $17 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners To nonmonetary international and regional organizations 5 Payable in dollars Deposits IMF End of period Total i Dem D an e d pos T it i s me 2 b T i c r l c U e l e s a r a . t t S s i e a f u . s i n r ­ d y s O l t i h e a t oT r b h m r . e o t 3 r ­t al P f r o e a i c n n y r u e c a r i i b g ­ e l n s e in m g v o e e l s n d t t ­ 4 Total Demand Time2 b T i c r l c U e 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 ­ 196 7 30,505 30,276 11,577 5,775 9,173 3,750 229 800 473 67 120 178 107 196 8 31,717 31,081 14,387 5,484 6,797 4,412 636 800 683 68 113 394 108 1969—July.. 38,207 37,762 21,042 5,680 5,070 5,970 445 800 682 59 78 227 318 Aug.. 39,650 39,192 21,091 5,854 5,858 6,389 458 800 682 54 76 230 321 Sept.. 40,703 40,287 20,750 6,090 7,052 6,395 416 800 679 61 86 225 307 Oct... 41,235 40,747 20,984 6,376 6,450 6,937 488 800 634 71 76 234 252 Novr. 41,156 40,711 21,235 6,673 5,632 7,171 445 800 669 58 66 291 254 Dec. 6 /40,094 39,666 20,481 6,834 5,015 7,336 429 800 612 57 83 244 227 \40,182 39,753 20,481 6,946 5,015 7,311 429 800 612 57 83 244 227 1970—Jan.'. 40,990 40,548 19,867 6,960 5,938 7,783 442 800 683 66 102 252 263 Feb.' 41,485 41,059 18,949 7,234 6,602 8,274 426 800 766 75 115 317 259 Mar.' 41,388 40,986 17,994 7,226 7,228 8,538 402 800 754 81 131 330 211 Apr.' 41,849 41,487 18,793 7,040 7,164 8,490 362 800 719 87 136 237 259 May. 41,748 41,397 18,266 7,304 7,564 8,263 351 800 653 65 141 226 221 June? 41,698 41,360 18,067 7,298 8,159 7,836 338 800 628 76 131 194 225 Julyp. 41,802 41,458 17,210 7,164 9,103 7,981 344 800 704 65 129 218 290 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. a SEPTEMBER 1970 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions 7 Payable in dollars Payable in dollars Payable End of period in Payable Dema D nd ep osi T ts ime2 T b c i r l c U e e l a s r a . t t s S i e a u f . s n i r ­ d y s O l t i h e a t o r b h m r . e t 3 r ­ f r o e c n r u e c i r i g ­ e n s Total Dema D n e d p osi T ts ime2 T bi c r c l U e e l a s a r . t t S s e a i u f . s n i r ­ d y t s O e l h i r a t o m h b r e . t r ­ 3 cu f r o r r e i e n n i c g i n es 19676............ 29,232 11,510 5,655 8,195 3,643 229 14,027 2,054 2,458 7,985 1,378 152 1968.............. 30,234 14,320 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 1 ,321 463 1969—July.. 36,725 20,983 5,602 4,043 5,653 445 8,780 1,892 1,872 3,872 912 232 Aug.. 38,168 21,037 5,778 4,828 6,067 458 9,839 2,066 1,983 4,671 887 232 Sept.. 39,224 20,689 6,004 6,027 6,088 416 11,281 1 ,993 2,119 5,895 1 ,042 232 Oct. . 39,801 20.912 6,299 5,416 6,686 488 11,611 1,955 2,432 5,301 1,691 232 Nov.r 39,687 21 ,177 6,607 4,540 6,917 445 11,128 1,894 2,709 4,421 1,902 202 Dec.6 3 3 8 8 , , 6 7 8 7 2 0 2 2 0 0 . . 4 4 2 2 3 3 6 6 , , 7 8 5 6 1 3 3 3 . . 9 9 7 7 1 1 7 7 , , 0 10 8 9 4 4 4 2 2 9 9 1 1 1 1 , , 0 0 4 5 5 4 1 1 . . 9 9 1 1 8 8 2 2 . . 9 9 5 5 1 1 3 3 . .8 8 4 4 4 4 2 2. . 1 1 3 3 9 9 2 20 0 2 2 1970—Jan.r 39,507 19,801 6,858 4,886 7,519 442 11,863 1 ,649 2,970 4,749 2,293 202 Feb.r 39,919 18,874 7,119 5,485 8,016 426 13,213 1,661 3,263 5,381 2,706 202 Mar.r 39,834 17.913 7,095 6,098 8,327 402 13,954 1,445 3,412 5,989 2,906 202 Apr.r 40,330 18,706 6,904 6,127 8,231 362 13,600 1,295 3,391 6,035 2,731 148 May. 40,295 18,201 7,162 6,538 8,042 351 13,976 1,330 3,442 6,417 2,639 148 June?* 40,270 17,990 7,166 7,166 7,609 338 14,463 1,410 3,498 7,020 2,387 148 July p. 40,298 17,144 7,034 8,086 7,690 344 15,735 1,553 3,519 7,946 2,569 148 To banks 8 To other foreigners To banks Payable in dollars and other foreigners: End of period payable in Total Dema D n e d p osi T ts ime2 T b c i r l U e e ls r a . t s S i a u f . n i r ­ d y s O l t i h e a t o r h b m r e . t r 3 ­ Total Dema D n e d posi T ts ime2 T b c i r l e U e ls r a . t s S i a f u . n i r ­ d y s O l t i h e a t o r h b m r . e t 3 r ­ f r o e c r n u e c r i i g ­ e n s cates cates 1967 6........... 15,205 11,008 7,763 1,142 129 1,973 4,120 1,693 2,054 81 292 77 196 8 18,916 14,299 10,374 1,273 30 2,621 4,444 1,797 2,199 86 362 173 1969—July. , 27,945 23,596 17,412 1 ,801 54 4,330 4,136 1,679 1,929 116 412 213 Aug.. 28,329 24,031 17,318 I ,947 35 4,732 4,072 1,653 1,847 122 448 226 Sept.. 27,943 23,692 16,920 2,080 25 4,667 4,067 1,776 1,804 107 379 184 Oct.. 28,190 23,990 17,246 2,125 22 4,598 3,944 1,711 1,742 93 398 256 Nov.r 28,559 24,457 17,611 2,164 18 4,664 3,859 1,673 1,734 101 351 243 Dec.6 2 2 7 7 , , 6 7 2 1 8 6 2 2 3 3 , , 4 4 6 3 3 9 1 1 6 6 . . 7 7 9 9 6 6 1 1 . . 9 9 8 8 9 8 2 2 0 0 4 4 , , 6 6 5 3 8 3 4 3 , , 5 9 0 3 1 9 1 1 , , 7 7 0 0 9 9 1 1, , 8 9 1 2 1 3 1 1 0 07 7 3 3 1 1 2 2 2 2 2 2 6 6 1970—Jan.r. 27,644 23,405 16,455 2,050 22 4,879 3,999 1,698 1,838 116 347 240 Feb.r 26,706 22,604 15,548 2,077 27 4,952 3,879 1,665 1.779 78 358 223 Mar.r 25,880 21,730 14,702 1,947 21 5,060 3,951 1,766 1,736 89 361 199 Apr.r 26,730 22,556 15,627 1,784 19 5,126 3,960 1 ,784 1,729 74 374 214 May. 26,319 22,145 15,163 1,954 20 5,007 3,972 1,708 1,766 102 396 202 June** 25,807 21,536 14,813 1,857 26 4,840 4,081 1,768 1,811 120 381 190 JulyP. 24,563 20,450 13,947 1,737 24 4,743 3,917 1,644 1.779 116 378 196 1 Data exclude “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line ar 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

SEPTEMBER 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. Amounts outstanding; in millions of dollars) 1968 1969 1970 Area and country Dec. Nov.r Dec. ir Jan.r Feb.r Mar.r Apr.r May June* July* Europe: 162 252 314 314 299 300 343 279 264 265 274 Belgium-Luxembourg................................. 313 553 528 530 587 625 603 598 511 526 582 Denmark....................................................... 146 151 153 153 178 182 212 186 165 167 189 Finland.......................................................... 176 115 120 120 124 138 130 132 141 130 134 France............................................................ 1,383 1,615 1,588 1,588 1,553 1,608 1,601 1,827 1,898 1,939 2,047 Germany....................................................... 2,640 2,006 1,381 1,381 2,226 2,658 2,680 2,685 2,770 3,455 4,241 Greece........................................................... 183 201 207 207 208 191 178 185 185 179 198 729 733 627 627 626 741 604 590 647 911 902 276 606 463 463 581 539 526 459 408 382 469 448 228 341 341 240 305 281 272 241 216 272 Portugal......................................................... 345 311 309 309 313 289 280 266 263 257 272 Spain.............................................................. 158 164 202 202 195 226 234 179 224 228 324 Sweden........................................................... 453 399 412 412 455 426 381 364 353 410 429 Switzerland................................................... 2,155 1,975 2,002 2,005 1,970 1,952 2,149 2,149 2,249 2,266 2,192 Turkey........................................................... 29 30 28 28 31 35 31 27 24 25 27 United Kingdom......................................... 6,133 12,244 11,392 11,394 10,988 10,460 9,781 10,312 9,474 9,441 8,324 Yugoslavia.................................................... 33 40 37 37 44 33 42 29 40 32 35 Other Western Europe2............................. 357 1,496 1,553 1,553 1,480 1,757 1,976 1,736 1,762 1,491 1,538 U.S.S.R.......................................................... 5 10 11 11 8 6 6 6 4 18 8 Other Eastern Europe................................ 48 38 50 50 44 39 39 37 40 49 53 Total...................................................... 16,170 23,168 21,718 21,725 22,149 22,510 22,078 22,317 21,663 22,388 22,510 Canada........................................................... 2,797 3,844 3,991 4,012 4,121 3,873 3,628 3,787 4,113 3,421 3,646 Latin America : Argentina...................................................... 479 409 416 416 418 450 450 517 525 535 588 Brazil............................................................. 257 402 425 425 412 452 526 544 518 555 543 Chile............................................................... 323 349 393 400 368 392 444 406 447 458 444 Colombia....................................................... 249 250 258 261 269 279 298 291 308 302 275 Cuba............................................................... 8 8 7 7 7 7 7 6 7 7 6 Mexico........................................................... 974 788 848 849 892 916 940 990 883 860 896 Panama.......................................................... 154 124 129 140 156 148 148 146 170 168 169 Peru................................................................ 276 218 239 240 219 216 239 220 233 242 210 Uruguay........................................................ 149 106 111 111 140 119 120 122 121 122 113 Venezuela...................................................... 792 635 674 691 703 695 718 704 675 682 637 Other Latin American republics.............. 611 508 556 562 558 587 611 635 635 645 634 Bahamas and Bermuda............................. 273 1,435 1,405 1,405 1 ,589 1,550 1,343 1,321 1,609 1,505 1,306 Netherlands Antilles and Surinam.......... 88 71 74 80 85 87 90 99 93 95 84 Other Latin America.................................. 30 42 34 34 40 36 36 47 36 39 70 Total...................................................... 4,664 5,345 5,571 5,622 5,856 5,934 5,969 6,049 6,259 6,216 5,976 Asia: China Mainland.......................................... 38 37 36 36 37 39 39 37 41 43 41 Hong Kong................................................... 270 214 213 213 196 223 219 225 223 225 226 India............................................................... 281 293 260 260 260 286 330 322 354 356 363 Indonesia....................................................... 50 74 86 86 78 69 89 87 79 68 59 Israel.............................................................. 215 115 146 146 178 185 152 139 172 147 131 Japan.............................................................. 3,320 3,773 3,788 3,788 3,628 3,557 3,910 4,084 4,020 3,995 3,914 Korea............................................................. 171 231 236 236 283 308 299 258 291 289 307 Philippines.................................................... 269 222 201 201 196 248 285 241 264 261 264 Taiwan........................................................... 155 188 196 196 215 218 228 210 226 262 260 Thailand........................................................ 556 611 628 628 653 666 664 630 643 627 603 Other.............................................................. 628 523 606 606 657 652 762 724 679 714 743 Total...................................................... 5,953 6,280 6,396 6,396 6,381 6,451 6,976 6,958 6,992 6,987 6,912 Africa : Congo (Kinshasa)....................................... 12 86 87 87 85 109 97 73 71 52 50 Morocco........................................................ 13 18 21 21 21 44 52 47 47 43 33 South Africa................................................. 58 54 66 66 69 91 96 58 50 45 47 U.A.R. (Egypt)............................................ 18 19 23 23 25 25 22 22 24 22 24 Other.............................................................. 260 533 499 505 517 606 594 694 716 683 649 Total...................................................... 361 710 695 701 716 875 862 895 908 845 803 Other countries: Australia....................................................... 261 311 282 282 255 244 287 290 329 383 418 All other........................................................ 28 29 29 30 30 32 34 33 30 32 33 Total...................................................... 289 340 311 313 285 275 321 324 359 414 451 Total foreign countries.................................. 30,234 39,687 38,682 38,770 39,507 39,919 39,834 40,330 40,295 40,270 40,298 International and regional: International3.............................................. 1,372 1,316 1,260 1,260 1,302 1,360 1,346 1,276 1,224 1,193 1,251 Latin American regional........................... 78 99 100 100 116 121 111 146 127 132 144 Other regional4............................................ 33 54 52 52 65 85 97 97 102 103 109 Total...................................................... 1,483 1,469 1,412 1,412 1,483 1,566 1,554 1,519 1,453 1,428 1,504 Grand total.......................................... 31,717 41,156 40,094 40,182 40,990 41,485 41,388 41,849 41,748 41,698 41,802 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. □ SEPTEMBER 1970 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY— Continued (End of period. Amounts outstanding; in m illions of dollars) Supplementary data 5 1968 1969 1970 1968 1969 1970 Area or country Area or country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus................................................... 21 8 2 11 15 Jordan.............................................. 7 3 4 17 30 3 6 4 9 10 Kuwait.. 34 67 40 46 66 Ireland, Rep. of.................................. 15 24 20 38 32 Laos.................................................. 4 3 4 3 4 Lebanon........................................... 97 78 82 83 82 Other Latin American republics: Malaysia.......................................... 52 52 41 30 48 Bolivia 61 66 65 68 76 54 60 24 35 34 Costa Rica............................................ 55 51 61 52 43 Ryukyu Islands (incl. Okinawa) . 26 17 20 25 Dominican RpnuhliV 60 69 59 61 76 Saudi Arabia.................................. 70 29 48 106 166 Ecuador 64 66 62 74 70 Singapore........................................ 157 67 40 17 25 Pl SfllvaHnr 84 82 89 69 79 7 2 4 4 6 Gu«itcm3.1ci 96 86 90 84 110 123 5? 40 94 91 Haiti....................................................... 17 17 18 16 19 Honduras.............................................. 31 33 37 29 29 Other Africa: Jamaica 44 42 29 16 17 8 8 6 14 13 Nicaragua 58 67 78 63 76 Ethiopia (incl. Eritrea)................. 23 13 15 20 33 Pjj raona v 14 16 18 13 17 Ghana.............................................. 13 3 8 10 7 rrinirf^H Ar Tnhaort 9 10 8 8 1 3 20 29 34 43 47 Liberia.............................................. 26 25 28 18 29 Libya................................................ 45 69 68 288 430 Other Latin America: Nigeria............................................. 24 20 10 11 11 British West Indies............................. 21 25 25 30 37 4 j 2 2 z 2 5 3 3 1 Other Asia: Tanzania......................................... 27 21 23 10 18 Afghanistan.......................................... 6 6 8 16 15 Tunisia.............................................. 2 7 2 6 7 Burma.................................................... 17 5 5 2 Uganda............................................ 10 6 9 5 7 Cambodia............................................. 3 2 2 1 1 Zambia............................................. 21 25 19 17 38 Ceylon................................................... 5 4 5 3 4 Iran........................................................ 38 41 44 35 41 All other: Iraq........................................................ 10 86 77 26 6 New Zealand.................................. 15 17 20 16 18 1 Data in the two columns shown for this date differ because of changes 3 Data exclude “holdings of dollars” of the International Monetary in reporting coverage. Figures in the first column are comparable in cover­ Fund but include IMF gold investment. age with those shown for the preceding date; figures in the second column 4 Asian, African, and European regional organizations, except BIS and are comparable with those shown for the following date. European Fund, which are included in “Europe.” 2 Includes Bank for International Settlements and European Fund. 5 Represent a partial breakdown of the amounts shown in the “other” categories (except “Other Eastern 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 ti d n . al Total O in t f i s f o t i n c it 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 t l e r l i r es 1966................................ 1 494 506 988 913 25 50 234 8 197 140 277 133 1967 2 j (2 2 , , 5 5 4 6 6 0 6 6 9 8 8 9 1 1 , , 8 8 6 5 3 8 1 1 , , 8 8 0 07 7 1 1 5 5 4 35 0 2 2 5 5 1 1 2 2 3 3 4 4 1 12 26 6 4 4 4 43 3 2 2 1 1 8 8 5 5 0 0 2 2 8 89 4 1968................................ 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969—July..................... 2,825 797 2,028 1,963 30 36 207 129 181 658 199 529 125 Aug..................... 2,768 813 1,956 1,889 30 37 207 149 154 658 157 509 122 Sept..................... 2,678 886 1,792 1,713 43 36 146 130 101 659 117 508 131 Oct...................... 2,530 919 1,611 1,533 43 35 67 123 43 659 117 477 125 Nov..................... 2,483 900 1,583 1,502 44 37 62 154 43 659 70 475 119 Dec.r................. 2,492 889 1,602 1,507 55 41 64 175 41 655 70 472 124 1970—Jan.r................... 2,344 877 1,467 1,376 55 37 25 166 6 657 47 447 120 Feb.r................. 2,343 872 1,471 1,376 59 36 25 191 6 657 54 416 122 Mar.r................. 2,344 891 1,453 1,351 62 40 25 202 6 636 49 403 131 Apr.r................. 2,268 839 1,429 1,319 64 46 25 210 6 636 49 376 127 May.................... 2,214 853 1,362 1,248 64 50 25 217 6 619 28 329 138 June?................. 2,127 842 1,285 1,121 116 48 25 216 6 576 28 242 192 July?.................. 2,044 819 1,226 1,053 121 52 25 197 7 526 28 239 204 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

SEPTEMBER 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. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June* July* Europe: Denmark............................... 10 9 9 9 9 9 9 9 6 6 6 6 6 6 France................................... 5 6 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 44 44 45 42 42 42 42 46 46 46 45 45 44 United Kingdom................. 350 357 368 406 420 421 407 407 358 350 359 369 396 401 Other Western Europe----- 33 24 24 24 24 24 24 24 24 24 24 24 24 24 Eastern Europe................... 6 7 7 7 7 7 7 7 7 7 7 7 7 7 Total.................................. 488 491 502 541 553 553 538 539 491 483 492 501 529 532 Canada...................................... 384 389 389 389 271 272 272 271 270 271 271 279 286 287 Latin America: Latin American republics.. 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Neth. Antilles & Surinam. 15 12 12 12 12 12 12 13 12 12 12 12 12 12 Other Latin America.......... * * * * * 2 2 2 2 2 2 2 2 3 Total............................. 17 14 14 14 14 15 15 17 15 15 15 15 15 16 Asia: Japan..................................... 9 10 10 10 10 10 61 61 62 62 62 61 61 61 Other Asia........................... 18 18 18 19 19 17 18 18 18 18 18 19 19 19 Total.............................. 26 28 28 28 29 27 79 79 80 80 80 81 81 81 Other countries....................... 11 9 9 9 7 7 7 7 7 7 7 7 22 42 Total foreign countries.......... 927 931 942 982 874 875 912 914 864 856 865 883 933 959 International and regional: International........................ 25 32 32 32 32 32 32 31 31 30 30 30 30 30 Latin American regional.. 13 17 17 17 17 18 18 19 19 20 20 21 21 22 Asian regional..................... 1 Total............................. 39 49 49 49 '50 50 50 50 50 50 51 51 52 53 Grand total.................. 966 980 991 1,031 923 925 962 964 914 906 916 934 985 1,012 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 1 ­ m De a n rk ­ Italy2 Korea S d w en e­ T w a a i n ­ 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 e S r w la i n tz d ­ 196 7 1,563 516 314 177 1,047 60 601 125 211 196 8 3,330 1,692 32 1,334 20 146 15 100 1,638 1,051 226 311 1969—Aug. 3.251 1.390 32 1.084 140 15 100 1,861 1,200 125 511 Sept. 3.251 1.390 32 1.084 139 15 100 1,861 1,200 125 511 Oct.. 43,372 1,435 32 1.129 139 15 100 41,937 41,301 125 511 Nov. 3.181 1.431 32 1.129 135 15 100 1.750 1.084 125 541 Dec. 3.181 1.431 32 1.129 135 15 100 1.750 1.084 125 541 1970—Jan.. 2,514 1.431 32 1.129 135 15 100 1.083 542 541 Feb.. 2,513 1.431 32 1.129 135 15 100 1.083 542 541 Mar. 2,799 1,717 32 1,429 121 15 100 1.083 542 541 Apr. 2,897 1,814 32 1,529 118 15 100 1.083 542 541 May 3,096 2,013 32 1,729 117 15 100 1.083 542 541 June 3,511 2,428 32 2.229 32 15 100 1.083 542 541 July. 3.508 2.425 32 2.229 29 15 100 1.083 542 541 Aug. 3.508 2.425 32 2.229 29 15 100 1.083 542 541 I 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 □ SEPTEMBER 1970 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1968 1969 1970 Area and country Dec. Nov.r Dec. ir Jan.r Feb.r Mar.r Apr. May June? July25 Europe: Austria........................................................... 6 6 7 7 20 10 11 3 5 5 13 Belgium-Luxembourg................................ 40 57 56 56 49 53 55 69 67 64 53 Denmark....................................................... 36 41 40 40 49 32 36 31 29 33 28 Finland.......................................................... 63 72 68 68 66 63 64 64 61 63 65 France........................................................... 66 93 107 107 117 94 87 96 100 82 83 Germany....................................................... 171 198 205 205 180 155 192 135 146 152 125 Greece........................................................... 12 17 22 22 17 16 17 19 22 22 25 Italy............................................................... 105 99 120 120 129 123 107 102 103 100 87 Netherlands.................................................. 40 46 51 51 84 61 50 65 86 53 49 Norway......................................................... 43 38 34 34 34 32 36 34 35 33 31 Portugal........................................................ 10 8 8 8 9 11 13 9 13 12 12 Spain.............................................................. 46 68 70 70 73 83 57 99 96 102 52 Sweden........................................................... 58 86 67 67 82 95 78 99 92 112 113 Switzerland................................................... 93 131 99 99 124 122 107 114 91 115 104 Turkey........................................................... 38 26 19 19 14 15 25 19 31 16 22 United Kingdom......................................... 318 400 418 408 405 435 418 393 329 403 399 Yugoslavia.................................................... 22 25 28 28 29 35 32 32 34 30 32 Other Western Europe............................... 15 11 9 9 7 8 9 7 10 8 7 U.S.S.R.......................................................... 3 2 2 2 2 1 2 2 2 2 1 Other Eastern Europe................................ 21 28 34 34 30 34 43 40 46 41 45 Total...................................................... 1,205 1,453 1,463 1,454 1,519 1,478 1,439 1,432 1 ,397 1,449 1,345 Canada........................................................ 533 667 818 826 730 720 652 598 765 815 728 Latin America: Argentina...................................................... 249 301 311 309 301 293 290 285 280 311 306 Brazil............................................................. 338 318 317 317 296 289 285 293 303 306 299 Chile............................................................... 193 177 188 188 178 195 203 213 218 213 210 Colombia...................................................... 206 210 225 225 237 252 249 254 252 249 250 Cuba............................................................... 14 14 14 14 14 14 14 14 14 14 14 Mexico........................................................... 948 778 801 803 805 808 851 888 899 911 901 Panama......................................................... 56 67 68 68 61 68 61 68 67 63 67 Peru............................................................... 207 173 161 161 173 168 163 159 162 172 156 Uruguay........................................................ 44 46 48 48 49 50 55 55 54 52 57 Venezuela...................................................... 232 228 240 240 250 261 264 254 264 253 248 Other Latin American republics.................. 280 286 295 295 303 307 292 295 287 298 295 Bahamas and Bermuda.............................. 80 48 92 93 62 68 73 67 63 65 56 Netherlands Antilles and Surinam.......... 19 15 14 14 13 14 13 15 15 18 16 Other Latin America.................................. 22 20 27 27 22 22 27 29 23 21 23 Total...................................................... 2,889 2,680 2,803 2,802 2,764 2,810 2,839 2,890 2,901 2,946 2,898 Asia: China Mainland.......................................... 1 1 1 1 1 1 1 1 1 1 1 Hong Kong.................................................. 32 37 36 36 37 37 41 41 44 46 41 India............................................................... 19 11 10 10 11 9 9 9 12 11 12 Indonesia...................................................... 23 23 30 30 29 25 68 49 48 52 36 Israel.............................................................. 84 101 108 108 101 96 92 99 94 93 90 Japan............................................................. 3,114 3,114 3,342 3,372 3,160 3.080 3,215 3,276 3,378 3,407 3,378 Korea............................................................. 77 160 158 158 167 172 178 190 216 215 222 Philippines.................................................... 239 230 215 215 207 254 275 295 278 268 269 Taiwan........................................................... 38 42 49 49 50 56 55 59 69 79 82 Thailand........................................................ 99 97 101 101 99 98 95 103 98 100 96 Other............................................................. 145 205 212 212 208 168 162 164 179 184 180 Total...................................................... 3,872 4,022 4,261 4,291 4,069 3,997 4,190 4,286 4,419 4,455 4,406 Africa: Congo (Kinshasa)....................................... 3 5 6 6 5 5 3 4 5 5 5 Morocco........................................................ 2 2 3 3 3 3 4 5 4 4 4 South Africa................................................ 46 56 55 55 53 51 62 60 58 66 69 U.A.R. (Egypt)............................................ 8 11 11 11 10 12 12 15 17 15 15 Other............................................................. 73 82 86 86 79 63 63 62 62 68 65 Total...................................................... 133 155 162 162 150 136 144 146 145 158 157 Other countries: Australia....................................................... 66 52 53 53 58 55 60 56 62 62 63 All other........................................................ 13 14 16 16 14 14 13 22 22 18 15 Total...................................................... 79 66 69 69 72 68 73 78 84 80 78 Total foreign countries.................................. 8,710 9,043 9,576 9,604 9,304 9,209 9,338 9,429 9,711 9,903 9,612 International and regional............................. ♦ 1 2 2 1 2 2 1 2 1 1 Grand total.......................................... 8,711 9,044 9,578 9,606 9,305 9,210 9,340 9,430 9,714 9,904 9,613 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

SEPTEMBER 1970 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o t L i n i c t o i s u a a ­ l ns t B o a — nks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i r c g f n c a n a f c e o d e c e p r r c e s t s t ­ ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c F a n o u c o n o v r a r d i t m n e t , i c i f e s l g e i . s e ­ n , ­ Other paper 196 7 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—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.. 9,044 8,610 3,203 261 1,944 999 1,928 2,922 556 434 316 45 74 Dec. 2 (9,578 9,063 3,281 262 1,946 1,073 1,954 3,169 658 516 352 84 79 19,606 9,091 3,278 262 1,943 1,073 1,954 3,202 656 516 352 84 79 1970—Jan.'. 9,305 8,804 3,260 257 1,986 1,018 1,970 3,019 554 502 347 77 78 Feb.' 9,210 8,750 3,207 265 1,914 1,029 1,992 2,987 563 461 320 62 78 Mar.' 9,340 8,926 3,290 294 1,922 1,074 2,083 3,044 508 415 300 45 70 Apr.' 9,430 8,952 3,116 335 1,734 1,047 2,153 3,223 459 478 342 70 66 May. 9,714 9,216 3,193 315 1,825 1,053 2,220 3,244 559 498 338 76 84 June^ 9,904 9,437 3,316 305 1,932 1,079 2,238 3,287 595 467 314 78 74 July?. 9,613 9,193 3,190 256 1,872 1,062 2,244 3,234 525 420 295 61 64 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 n l ­ 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 Am La 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 Banksi 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—July.... 3,255 2,826 450 208 2,168 408 21 54 447 390 1,294 97 570 404 Aug....... 3,289 2,859 504 212 2,142 409 21 56 436 405 1,348 95 551 397 Sept....... 3,272 2,847 485 211 2,150 409 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.'... 3,268 2,846 495 203 2,147 406 17 55 400 407 1,357 85 573 391 Dec.'... 3,238 2,806 502 209 2,096 414 18 55 411 408 1,329 88 568 378 1970—Jan.'... 3,174 2,735 461 210 2,063 409 29 55 403 406 1,306 90 558 356 Feb.'. . . 3,147 2,725 476 203 2,046 390 33 51 401 416 1,296 86 545 351 Mar.'... 3,212 2,795 519 210 2,067 386 31 56 419 406 1,336 87 559 349 Apr.r... 3,236 2,815 508 220 2,087 390 32 62 413 420 1,363 89 546 343 May.... 3,232 2,822 511 211 2,100 380 30 67 426 427 1,348 89 530 344 June*... 3,165 2,776 486 209 2,080 362 27 67 425 416 1,328 92 517 319 July?. .. 3,111 2,731 473 215 2,043 351 29 68 396 417 1,324 100 500 307 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. □ SEPTEMBER 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 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign ch P a u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ ch P a u s r e ­ s Sales c N h s a e a s t l e 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 r ­ 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 1969r............................. -4 11 -15 -79 64 15,476 12,795 2,681 1,552 2,568 -1,016 1 ,519 2,037 -517 1970—Jan.-Julyp........ 50 3 47 34 13 6,462 6,039 423 872 1,331 -459 678 570 108 1969—July................... 17 1 16 -9 25 1,058 1,007 51 82 321 -239 119 124 -5 Aug.................... 11 * 11 11 1,061 941 120 75 140 -65 107 104 2 Sept................... 40 * 40 40 1,062 904 158 91 208 -117 105 207 -102 Oct..................... -108 * -108 -117 9 1,690 1,195 494 157 157 1 132 139 -6 Nov................... 2 1 1 -1 2 1,221 1,074 147 98 168 -70 106 140 -34 Dec.r................ 37 * 37 52 -15 1,181 969 212 176 195 -19 107 123 -16 1970—Jan.r................. 2 * 2 2 917 903 14 113 190 -77 151 74 77 Feb.r................. -50 * -50 -3 -47 1,026 950 77 109 265 -156 100 77 23 Mar.r............... -8 * -8 * -8 1,105 985 120 168 268 -101 101 115 -13 Apr.r................. 10 1 9 9 1,007 845 162 143 186 -42 80 104 — 24 May................... 18 1 18 2 16 769 930 -161 116 70 47 109 90 18 June?................. 51 * 50 15 35 858 781 76 111 92 19 74 52 22 July?................. 27 1 26 20 6 780 645 135 112 260 -148 62 58 4 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 et n h d e s r­Sw la it n z d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o r t o a p l e Canada A L m a e t r in ica Asia Africa co O un th 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.-Julyp. -172 12 78 36 -29 -131 -57 -90 -106 -27 41 -1 1 9 1969—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............. r—42 1 11 -5 -24 5 -20 -31 -39 25 3 * * * Feb............ -15 9 16 6 19 -3 -14 32 -25 -27 3 * * 1 Mar........... -41 -13 11 -8 -26 22 -19 -33 -30 12 6 -1 * 4 Apr............ 8 -8 20 -23 12 -15 5 -10 25 -13 6 * * 1 May.......... -200 1 -2 33 -46 -102 -32 -149 -30 -26 3 -1 * 1 JuneP........ 64 6 3 18 23 -23 14 41 8 -2 15 * * * July?......... 54 16 19 16 13 -14 9 59 -16 3 6 * 1 1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 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 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 Am La e t r i i n ca co O un th t e r r ies I r n e t g l. i on an a d l 1968....................... 1,964 195 253 510 522 238 1,757 68 12 -1 117 1969r..................... 1,194 97 200 169 251 83 815 32 14 -11 336 1970—Jan.-July* 595 16 111 99 23 319 57 24 189 1969—Jul y 103 39 22 5 81 -11 -5 38 Aug........... 31 24 5 23 2 54 5 -1 -1 -13 Sept........... 39 27 -4 -20 -6 2 -2 5 35 Oct............ 146 25 9 11 15 68 4 -6 82 Nov........... 35 10 6 -13 9 18 1 1 14 Dec.r........ 193 17 26 44 19 146 1 6 38 1970—Jan. r 56 5 15 14 2 43 11 3 -1 Feb............ 92 8 14 35 -12 53 7 -4 37 Mar........... 161 8 8 30 9 78 13 10 58 Apr............ 154 4 32 10 7 76 5 6 65 May.......... 40 * 14 -14 5 9 2 2 26 June*........ 13 -6 4 -12 3 -8 13 2 -6 3 July*......... 81 -2 23 36 68 7 5 -1 1 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 Period Total I a r n n e t d ­ l. c e f o o i u g r n n ­ ­ r E o u p ­ e C a a d n a ­ A L i m a c t a e in r­ Asia r A ic f a ­ O c t o r t u i h e n e s r ­ E pe n r d i o o d f fo b ( r a d e l u i a g e n n c t e e o r s s ) f ( o d b r a u e l e i a g n f n r c e o e r m s s ) gional tries 1966.......................................... 175 128 1968............................ -1,694 -329 -1,366 7 -945 -300 -96 -39 6 1967.......................................... 311 298 1969............................ -1,534 66-1,600 74-1,118 - 98 -471 -6 20 1968—Mar.............................. 351 269 1970—Jan.-July*. .. -351 -31 -320 114 -354 -26 -61 -3 9 453 372 468 398 1969—July................ -244 -11 -233 -1 -211 -6 -18 * 3 636 508 Aug................ -63 -6 -57 9 -50 -16 -1 -1 2 Sept................ -218 -9 -209 16 -131 * -98 * 3 1969—Mar.............................. 553 393 Oct.................. -6 4 -10 70 -21 -12 -48 2 -1 566 397 Nov................ -104 3 -107 15 -78 1 -48 * 1 467 297 Dec................. -35 4 -39 -8 -24 10 -30 * 14 434 278 1970—Jan.r.............. * -2 2 10 -11 -5 5 * 2 1970—Mar.............................. 368 220 Feb.r............. -133 -38 -95 33 -110 -5 -13 -1 2 331 181 Mar.r............. -114 22 -136 36 -154 5 -23 -1 1 Apr.r............. -66 9 -75 17 -82 -2 -9 * 1 J M u a n y e . * .. . . . . . . . . . . . . . . . . . . . . . . . . . 6 41 5 11 5 5 35 4 -1 9 4 3 2 7 3 3 -14 8 * * 2 1 mo N n o ey t e d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in m g o o n n e t y h e c r b e o d o i k t s b o al f a r n e c p e o s r t a i n n d g July*.............. -144 -38 -106 9 -77 -23 -14 * * brokers and dealers in the United States, in accounts of 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. □ SEPTEMBER 1970 21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 22. MATURITY OF EURO DOLLAR DEPOSITS IN FOREIGN (Amounts outstanding; 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. 1970'-—Cont. 1970 Maturity of Jan. 26.........................1,688 June 26................. 6,202 liability Feb. 23........................1,902 July 31................. 6,126 Feb. 4................. 13,472 Apr. May June Mar. 30........................1,879 Aug. 28................. 7,004 11................. 13,215 A M p a r y . 2 27 5 . . . . . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 , , 9 0 0 0 9 3 S O e c p t t . . 2 3 5 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 , , 1 0 0 4 4 1 2 1 5 8 . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . 1 1 3 2 , , 0 9 9 8 4 3 1.69 1.74 1.68 June 29........................1,951 Nov. 27................. 7,170 Call......................................... 2.41 2.36 2.19 Dec. 25................. 6,948 Mar. 4................. 12,395 Other liabilities, maturing July 27........................2,786 Dec. 31 (1/1/69).. 6,039 1 1 12,485 in following calendar Aug. 31........................3,134 1 8 12,472 months after report Sept. 28........................3,472 2 5 11,942 date: O N c o t v . . 2 3 6 0. . . . . . . .. . . . . . . .. .. . . . . . . .. .. . . . . .. .. . . . . . . . . . . . 3 3 , , 6 7 7 8 1 6 1969 Apr. 1................. 11,800 2 nd................................. 9 4 . . 3 5 1 9 5 8 . . 1 9 9 8 1 4 0 . . 0 4 6 9 Dec. 28........................4,036 J F a e n b . . 2 29 6. .. .. .. .. . . .. . . .. .. .. . . .. . . .. .. .. . 8 8 , , 8 5 2 4 2 5 1 8 5 . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . 1 1 1 1 , ,5 8 5 32 8 4 3 t r h d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. . 6 9 8 0 3. . 1 9 5 8 31..2426 1967 M Ap a r r . . 2 3 6 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 9 , , 3 6 9 2 9 1 2 2 2 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 , , 5 9 5 7 0 3 65 t t h h. . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 3 3 1 1. . 1 0 1 5 1 1. . 1 2 8 8 J F a e n b . . 2 2 5 2. .. . . .. .. . . .. . . . . . . .. . . .. .. . . .. . . .. .. .. . . . . . . . . . 3 3 , , 6 3 5 9 3 6 J M un ay e 2 25 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 3 , , 8 2 6 6 8 9 May 6................. 11,982 78 t t h h. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 29 8 ..3211 . .1 2 9 4 J M A M u p n a a r y r e . . 2 2 3 2 6 9 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 3 3 2 , , , , 1 4 0 7 4 6 1 7 7 6 2 6 J S A u e u p ly g t . . 2 3 2 4 0 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 4 4 4 , , , 4 3 6 3 4 5 9 4 8 2 2 1 0 7 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 2 2 1 , , , 0 3 6 2 7 6 6 3 2 1 1 19 1 2 0 t t t t h h h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 1 1 1 23 7 9 0 . . . .2 1 2 2 1 8 4 0 . . . . 2 2 2 2 5 3 6 4 Oct. 29................. 13,649 June 3................. 11,987 Maturities of more than 1 July 26........................3,660 Nov. 26'............... 14,528 10................. 11,946 .28 .32 .34 S O N D A e c e u o p t c g v . t . . . . 2 2 2 3 2 0 7 5 9 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 4 4 4 4, , , , , 2 0 9 3 2 4 5 7 0 2 1 6 9 6 2 Dec. 2 3 1 1 3 4 0 7 1 r ' ' ' ' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 4 4 4 4 2 , , , , , 4 3 2 3 8 9 3 4 9 2 0 2 9 8 2 July 2 1 1 8 1 4 7 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 2 1 2 1 1 , , , , , 2 5 0 5 4 2 3 8 6 5 0 2 0 2 5 Note.—Includes interest- 2 b 5 ea .6 r 6 ing 26 U . . 2 S 4 . d 2 o 7 l . l 3 ar 0 1968 22................. 11,280 deposits and direct borrowings of all branches in 1970r 29................. 10,514 the Bahamas and of all other foreign branches for which such deposits and direct borrowings J F a e n b . . 3 2 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 , , 2 5 5 3 9 0 Jan. 7................. 13,472 Aug. 5................. 10,379 amount to $50 million or more. Mar. 27........................4,920 14................. 13,999 1 2 10,363 Details may not add to totals due to rounding. Apr. 24........................5,020 21................. 13,779 1 9 10,423 May 29........................5,872 28................. 13,623 2 6 10,747 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, p. 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 (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Assets incustody 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 ments1 1967................ 135 9,223 13,253 1968................ 216 9,120 13,066 1967...................... 1,163 852 133 128 49 621 309 1969—Aug... 143 8,058 13,033 1968...................... 1,638 1,219 87 272 60 979 280 S O N D e o e c p c v t t . . . . . . . . . . . . 1 1 1 1 3 4 3 3 1 3 0 4 9 7 8 7 , , , , 5 2 4 0 3 4 5 3 3 7 2 0 1 1 1 1 3 2 2 2 , , , , 3 0 9 9 1 7 9 0 1 8 9 4 1969— J S J A u u e u p l n g y t e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 , , , , 8 6 7 8 1 2 3 2 2 2 6 0 1 1 11 , , , , 1 2 2 2 3 5 4 6 2 6 6 4 1 1 19 1 2 0 3 3 60 2 3 3 3 9 4 1 0 3 7 3 3 1 9 9 923 9 0 0 1,0 9 9 9 1 4 9 8 1 3 4 3 4 4 4 3 5 5 1 6 3 0 0 0 1970— M F A J e p a a b r n r . . . . . . . . . . . . 2 2 3 1 1 0 0 5 3 2 4 0 9 7 9 8 , , , , 1 1 3 21 1 5 7 9 8 4 4 1 1 1 1 2 2 2 2 , , , , 2 2 2 2 9 6 7 7 1 8 2 0 O N D c o e t c v .. . . . 2 . . . . . r . . . . . . . . . . . . . . . 1 f 1 1 1 1 , , , , 3 7 6 4 1 1 7 5 5 8 6 2 1 1 1 , , , 2 2 0 95 5 3 2 1 2 2 4 1 1 1 9 6 0 1 1 7 5 6 2 2 1 1 7 8 8 7 9 3 0 4 6 7 78 5 8 66 1 ,0 9 6 6 8 0 6 1 1 3 0 0 4 5 4 3 1 1 8 6 1 5 8 8 1 J J U M A u u . u S n a l g y . e y . . . . . . . . . . Treasury 1 1 1 1 2 6 9 73 8 8 9 bills, cer 1 1 1 t 9 0 1 2 if , , , , i 7 8 8 4 c 5 0 8 8 a 8 3 9 4 tes of i 1 1 1 1 n 2 2 2 2 d , , , , e 2 2 2 2 b 8 1 3 4 t 3 7 9 0 edness, 1970— J J A M M F u a e p a a n n b r r y e . . ' . . r . r r . . ' . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 , , , , , , 4 5 6 7 7 5 1 4 9 8 2 2 1 1 1 8 9 0 1 1 1 1 1 1 , , , , , , 2 2 0 1 0 1 4 5 4 0 6 7 1 3 5 5 3 0 2 1 1 1 1 10 9 8 7 8 7 3 3 08 6 4 2 1 1 1 1 1 2 8 9 9 9 8 5 8 8 2 4 4 11 7 66 01 8 36 6 29 0 1 1 1 , , , 0 0 0 9 8 8 0 5 0 0 1 8 7 5 7 4 0 4 4 2 3 3 3 3 7 0 6 5 4 2 1 1 7 9 9 6 notes, and bonds; includes securities payable in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand hel N d o f t o e r .— in E t x er c n lu a d ti e o s n a d l e p a o n s d it s r e a g n io d n a U l . o S r . ga G n o iz v a t, t io s n ec s. u r E it a ie r s ­ o o r b l2 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 marked gold is gold held for foreign and international Data on the two lines for this date differ because of changes in reporting coverage. accounts and is not included in the gold stock of the Figures on the first line are comparable in coverage with those shown for the preceding United States. 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

SEPTEMBER 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. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1969 1970 1969 1970 June Sept. Dec. i' Mar.* June Sept. Dec.1 r Mar.* Europe: Austria........................................................ 4 4 2 4 3 5 5 5 5 6 Belgium-Luxembourg............................. 64 69 45 62 70 51 58 53 67 60 Denmark.................................................... 2 2 2 3 3 12 13 15 16 16 Finland....................................................... * 1 2 2 1 7 6 6 7 8 France......................................................... 121 131 124 135 124 162 149 114 122 156 Germany, Fed. Rep. of........................... 102 119 178 255 203 193 166 192 305 195 Greece......................................................... 5 3 3 4 3 24 26 18 19 19 Italy............................................................. 54 62 77 90 83 148 160 143 152 167 Netherlands............................................... 45 70 66 90 110 62 59 45 58 64 Norway....................................................... 14 9 3 4 5 14 12 15 17 12 Portugal...................................................... 7 9 9 10 6 11 15 10 10 14 Spain........................................................... 47 63 55 59 55 81 74 71 77 77 Sweden....................................................... 17 22 35 38 29 26 24 27 32 27 Switzerland................................................ 116 130 114 127 139 44 37 33 43 44 Turkey........................................................ 4 2 3 3 2 14 10 11 12 12 United Kingdom...................................... 354 401 348 439 519 1,234 1,199 931 1,062 1 ,344 Yugoslavia................................................. 1 5 1 1 2 14 15 18 18 18 Other Western Europe............................ 17 19 20 21 19 17 16 10 12 11 Eastern Europe........................................ 1 1 1 2 2 12 10 19 22 17 Total................................................... 976 1 ,122 1 ,087 1 ,348 1 ,378 2,131 2,053 1,734 2,054 2,267 Canada........................................................... 159 181 198 225 219 713 625 728 821 622 Latin America: Argentina................................................... 5 6 6 9 11 42 37 49 52 53 Brazil........................................................... 15 12 16 18 13 90 86 82 86 97 Chile........................................................... 4 10 9 12 10 38 37 40 41 42 Colombia................................................... 6 7 6 7 6 27 33 28 29 33 Cuba........................................................... * * * * * 2 2 . 1 1 1 Mexico........................................................ 11 9 13 17 24 112 110 115 141 139 Panama....................................................... 3 5 3 4 8 17 17 18 19 19 Peru............................................................. 8 6 9 12 10 26 28 27 30 34 Uruguay..................................................... 1 1 1 5 5 4 5 7 7 8 Venezuela................................................... 26 22 25 25 23 70 65 56 58 69 Other L.A. republics............................... 18 26 37 43 25 85 82 84 90 91 Bahamas and Bermuda........................... 19 22 22 31 47 38 33 54 65 82 Neth. Antilles and Surinam.................. 2 2 2 2 4 5 5 6 6 7 Other Latin America............................... 2 1 1 4 5 14 17 16 17 26 Total................................................... 121 132 150 190 190 570 557 582 643 702 Asia: Hong Kong................................................ 5 5 5 8 7 11 10 11 11 13 India............................................................ 18 20 18 20 27 40 37 34 37 36 Indonesia.........................................;.... 6 5 4 5 5 7 8 12 12 10 Israel........................................................... 11 12 12 14 15 13 19 31 36 33 Japan........................................................... 114 118 136 143 133 212 220 234 255 298 Korea.......................................................... 1 2 2 2 1 24 22 26 28 27 Philippines................................................. 11 10 8 9 6 25 26 31 37 32 Taiwan........................................................ s 6 3 3 4 19 19 19 19 23 Thailand..................................................... 2 2 3 3 3 12 12 14 15 15 Other Asia................................................. 50 53 33 27 26 104 111 112 119 112 Total................................................... 223 233 224 234 228 466 485 524 569 601 Africa: Congo (Kinshasa).................................... 2 2 2 2 3 3 3 4 4 4 South Africa.............................................. 14 12 13 14 19 27 25 26 29 28 U.A.R. (Egypt)......................................... 2 7 7 7 1 8 9 9 9 9 Other Africa.............................................. 51 33 27 29 32 43 42 43 46 45 Total................................................... 68 52 49 52 56 81 80 80 88 86 Other countries : Australia.................................................... 46 57 60 61 65 53 65 56 61 60 All other.................................................... 3 6 2 7 6 7 8 9 10 13 Total................................................... 50 63 62 68 71 60 73 64 71 74 International and regional......................... * * * * 2 2 2 * * 5 Grand total........................................ 1,598 1,782 1,770 2,117 2,144 4,023 3,874 3,712 4,246 4,356 1 Data in the two columns shown for this date differ because of changes Note.—Reported by exporters, importers, and industrial and comin reporting coverage. Figures in the first column are comparable in cover- mercial concerns and other nonbanking institutions in the United States, age with those shown for the preceding date; figures in the second column Data exclude claims held through U.S. banks, and intercompany accounts are comparable with those shown for the following date. 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. □ SEPTEMBER 1970 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total P d a o y l i l n a a b r l s e P fo a r y i e n a i b gn le Total P d a o y i l n l a a b r l s e Deposits with currencies banks abroad Other in reporter’s name 1966—Mar....................... 849 614 235 2,473 2,033 211 229 June....................... 894 657 237 2,469 2,063 191 215 Sept....................... 1,028 785 243 2,539 2,146 166 227 Dec........................ 1,089 827 262 2,628 2,225 167 236 1967—Mar....................... 1,148 864 285 2,689 2,245 192 252 June....................... 1,203 916 287 2,585 2,110 199 275 Sept....................... 1,353 1,029 324 2,555 2,116 192 246 Dec........................ I 1,371 1,027 343 2,946 2,529 201 216 Dec. i..................... \ 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 Sept....................... 1,678 1,271 407 3,907 3,292 422 193 Dec........................ 1 ,608 1 ,225 382 3,783 3,173 368 241 1969—Mar....................... 1,576 1,185 391 4,014 3,329 358 327 June....................... 1 ,598 1 ,248 350 4,023 3,282 463 278 Sept....................... 1,782 1 ,436 346 3,874 3,188 420 267 Dec........................ f 1,770 1 ,384 387 3,712 3,126 221 365 Dec.1 r.................. 1 2,117 1 ,627 490 4,246 3,555 313 379 1970—Mar.^................... 2,144 1 ,659 485 4,356 3,790 259 307 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 (Amounts outstanding; 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 it d e o d m E O u t r h o e p r e Canada Brazil Mexico A O L m t a e h t r i e i n r ca Japan O A t s h i e a r Africa o A th l e l r 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........................... 1,129 1,790 147 306 419 194 73 230 128 171 83 38 1969—Mar.......................... 1,285 1,872 175 342 432 194 75 222 126 191 72 43 June......................... 1,325 1 ,952 168 368 447 195 76 216 142 229 72 40 Sept.......................... 1,418 1 ,965 167 369 465 179 70 213 143 246 71 42 Dec........................... ( 1,716 2,215 152 433 496 172 73 388 141 249 69 42 Dec.1'..................... \ 2,155 2,331 152 443 537 174 77 416 142 269 75 46 1970—Mar.*’...................... 2,273 2,706 156 735 546 178 74 454 158 286 71 47 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

SEPTEMBER 1970 □ MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Ar (p ge e n so ti ) na (s A ch u i s l t l r in 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 r e u y p l e o e n ) D ( e k n r m on a e r ) k (m Fi a n r la k n k d a) (pound) (dollar) 1965 .59517 222.78 3.8704 2.0144 92.743 20.959 14.460 31.070 1966. .48690 223.41 1111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967. .30545 111.25 3.8688 2.0125 92.689 20.501 14.325 229.553 1968 .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 1969 .28492 111 .10 3.8654 1.9942 92.855 16.741 13.299 23.774 1969- .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- 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 28.500 111.73 3.8614 2.0140 93.195 16.770 13.324 23.748 27.241 111.45 3.8618 2.0142 496.273 16.770 13.334 23.748 24.934 111 .12 3.8670 2.0146 96.872 16.770 13.328 23.748 24.936 110.99 3.8638 2.0145 97.890 16.770 13.329 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 l l a l y a s r i ) a M (p e e x s i o c ) o ( e g N r u l e i a l t n d h d e ­ r s ) 1965.................................................................. 20.401 25.036 20.938 279.59 .16004 .27662 32.609 8.0056 27.774 1966.................................................................. 20.352 25.007 516.596 279.30 .16014 .27598 32.538 8.0056 27.630 1967.................................................................. 20.323 25.084 13.255 275.04 .16022 .27613 32.519 8.0056 27.759 1968.................................................................. 20.191 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 1969.................................................................. 619.302 725.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1969- 618.627 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........................................................ 17.907 726.801 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 May...................................................... 18.108 27.523 13.240 240.37 .15897 .27862 32.449 8.0056 27.565 June...................................................... 18.111 27.528 13.230 239.77 . 15897 .27864 32.391 8.0056 27.588 July....................................................... 18.164 27.537 13.219 239.06 . 15893 .27826 32.308 8.0056 27.694 18.109 27.537 13.212 238.77 .15928 .27915 32.287 8.0056 27.775 Period (pou N n e d w ) Zeal ( a d n o d llar) N (k o r r o w n a e) y P (e o s r c t u u d g o a ) l A ( S r o f a r u n i t c d h a ) (p S e p s a e i t n a) ( S k w r e o d n e a n ) ( e S f r r w l a a i n n tz c d ­ ) (p U 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 8131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 1968.................................................................. 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969.................................................................. 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 1969—-Aug....................................................... 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 23.229 239.02 111.50 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- 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 23.257 240.47 111.94 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 May...................................................... 111.84 13.987 3.5033 139.69 1.4280 19.233 23.199 240.37 June...................................................... 111.56 13.985 3.4978 139.35 1.4288 19.266 23.171 239.77 July....................................................... 111.23 13.951 3.4913 138.93 1.4290 19.282 23.235 239.06 Aug....................................................... 111.10 13.998 3.4898 138.76 1.4290 19.306 23.247 238.77 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 6 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to system. The new unit, the dollar, replaces the pound and consists of 100 5.55 francs per U.S. dollar. cents, equivalent to 10 shillings or one-half the former pound. 7 Effective Oct. 26, 1969, the new par value of the deutsche mark was 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 set at 3.66 per U.S. dollar. to 4.2 markkaa per U.S. dollar. 8 Effective July 10, 1967, New Zealand adopted the decimal currency 3 A new Argentine peso, equal to 100 old pesos, was introduced on system. The new unit, the dollar, replaces the pound and consists of 100 Jan. 1, 1970. Effective June 18, 1970, the peso was devalued from 3.50 to cents, equivalent to 10 shillings or one-half the former pound. 4.00 pesos to the U.S. dollar. 4 On June 1, 1970, the Canadian Government announced that, for the Note.—After the devaluation of the pound sterling on Nov. 18, 1967, time being, Canada will not maintain the exchange rate of the Canadian the following countries devalued their currency in relation to the U.S. dollar within the margins required by IMF rules. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. s Effective June 6, 1966, the Indian rupee was devalued from 4.76 to Averages of certified noon buying rates in New York for cable transfers. 7.5 rupees per U.S. dollar. For description of rates and back data, see “International Finance,” 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 □ SEPTEMBER 1970 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Aug. 31, 1969 Rate Country 1969 1970 as of Aug. 31, Per Month 1970 cent effective Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. 6.0 Dec. 1957 6.0 Austria..................................... 3.75 Oct. 1967 4.75 5.0 5.0 Belgium.................................... 7.0 July 1969 7.5 7.5 Brazil........................................ 20.0 July 1969 20.0 Burma....................................... 4.0 Feb. 1962 4.0 Canada1................................... 8.0 July 1969 7.5 7.0 7.0 Ceylon...................................... 5.5 May 1968 5.5 Chile.......................................... 14.0 July 1969 14.0 Colombia................................. 8.0 May 1963 8.0 Costa Rica............................... 4.0 June 1966 4.0 Denmark.................................. 9.0 May 1969 9.0 Ecuador.................................... 5.0 Nov. 1956 8.0 8.0 El Salvador.............................. 4.0 Aug. 1964 4.0 Finland.................................... 7.0 Apr. 1962 7.0 France...................................... 7.0 June 1969 8.0 7.5 7.5 Germany, Fed. Rep. of........ 5.0 June 1969 6.0 7.5 7.0 7.0 Ghana .■.................................... 5.5 Mar. 1968 5.5 Greece...................................... 6.0 July 1969 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 Tran........................................... 8.0 Aug. 1969 8.0 Ireland...................................... 8.38 Aug. 1969 8.25 8.62 8.19 7.81 7.19 7.31 7.31 Israel......................................... 6.0 Feb. 1955 6.0 Italy.......................................... 4.0 Aug. 1969 5.5 5.5 Jamaica.................................... 6.0 May 1969 6.0 Japan........................................ 5.84 Aug. 1968 6.25 6.25 Korea........................................ 26.0 June 1969 24.0 24.0 Mexico..................................... 4.5 June 1942 4.5 Netherlands............................ 6.0 Aug. 1969 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............... 10.0 June 1969 10.0 Portugal................................... 2.75 Jan. 1969 3.5 3.5 South Africa........................... 5.5 Aug. 1968 5.5 Spain........................................ 5.5 July 1969 6.5 6.5 Sweden............................... 7.0 July 1969 7.0 Switzerland............................. 3.0 July 1967 3.75 3.75 Taiwan..................................... 10.8 May 1969 10.8 Thailand.................................. 5.0 Oct. 1959 5.0 Tunisia..................................... 5.0 Sept. 1966 5.0 T urkey...................................... 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 7.0 Venezuela................................ 5.5 June 1969 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, or the same as bank rate, whichever is lower. (rate shown is 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 per cent 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

SEPTEMBER 1970 □ MONEY RATES; ARBITRAGE A 91 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la it n z d er­ Month 3 T m r b e o i a l n l s s t u , h r s y i m Da o d y n a - y e 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 o a l n l s 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 o k n a s e n i r t c s s e ’ D m a o d y n a - e y t y o - 3 Tr 6 d b e 0 a i a - y l 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 m r b e i o a l n s ls u t , h ry s D m a d o y a n - y t e o y - d P is r r c i a v o t a u e t n e t 1 1 9 9 6 6 8 7 — —D D e e c c . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 . . 9 8 6 0 5 5 . . 3 6 1 7 7 7. . 7 2 8 6 6 7 . . 8 5 0 2 5 6 . . 9 8 9 3 5 6 . . 0 0 0 0 4 8 . . 7 2 6 2 2 2 . . 7 7 5 5 2 1 . . 7 8 7 4 4 4 . .6 51 5 4 4. . 9 05 6 3 3 . . 7 7 5 5 1969—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 S O A e u c p t g . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 7 . . . 6 6 7 8 5 5 7 7 7. . . 7 5 7 1 7 7 8 8 8 . . . 8 8 8 8 8 8 7 7 7. . . 7 8 8 3 0 0 7 6 7 . . .9 0 0 5 2 7 6 6 6 . . . 0 0 0 0 0 0 9 9 8 . . . 3 3 8 9 7 4 5 4 5 . . . 7 7 7 5 5 5 6 4 5 . . . 6 0 8 8 3 7 5 5 6 . . . 8 9 0 8 8 0 7 7 3 . . . 7 6 8 1 0 6 4 4 4 . . . 7 2 3 5 5 8 D N e o c v . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 . . 7 7 1 8 7 7. . 7 7 8 8 8 8 . . 8 8 8 8 7 7. . 7 7 2 0 6 6 . . 8 9 5 0 6 6 . . 0 0 0 0 1 9 0 . . 5 3 9 8 5 5 . . 7 7 5 5 7 8. . 3 6 5 4 5 6 . . 9 0 5 0 7 5 . . 1 5 1 5 4 4 . . 7 75 5 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 A M M p a a r r y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 6 . . . 5 8 3 1 1 5 7 6 6 . . . 3 6 8 5 6 2 8 8 8 . . . 0 3 6 6 0 0 6 7 6 . . . 8 2 9 2 7 4 6 6 6 . . . 0 2 9 3 6 7 5 5 5 . . . 2 0 5 3 0 6 9 9 8 . . . 4 0 9 7 2 0 7 7 7 . . . 0 0 0 0 0 0 9 9 9 . . . 5 2 6 5 3 8 6 6 6 . . . 0 0 0 0 0 0 7 5 7 . . . 0 5 0 7 7 4 5 5 5 . . . 2 2 0 5 5 0 June............. 5.90 5.98 8.06 | 6.87 6.03 5.00 9.34 7.00 8.76 6.00 6.92 5.25 July............. 5.79 6.00 8.07 j 6.82 6.01 5.00 6.75 8.86 6.00 6.96 5.25 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 3 4 B R R a a a s t t e e e d s i n h o o n e w f f w n e e c e i t s k a l o t y n e a n p v d r e i r v o a a f g t e m e s s o o e n c f t u h d r . a it i i l e y s . closing rates. Sec N ti o o t n e .— 15 F o o f r S d u e p sc p r le 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 r S n ta a t t i i s o t n ic a s l , 1 F 9 in 62 a . nce,” ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date q K ( u U a i b n o U d n a t g j i . s a S . t d i t e s o . t i d ) o o m n U S n ta it te e s d L S ( o f p a n o r v d e f o a o r d n) P d f ( ( o p r i + - s e r o c m w ) u ) o a n i u o o u r d n n r m d t i L n ( o c f N n a e o n v d e f o t t o i r v n e ) qu A i o n t s ed Cana q d A u a o U d t j . a . S t . t i o o n U St n a i t t e e s d C S ( a f p a n o r v a e f o d a r d a) C P d f ( ( d o r a i + - s o e r n c w m ) l a ) l o a d a i u o o u r r i n n a r s m d t n i C n ( c a f N e a n o n v a e f t o d t i r v a e ) Canada basis 1970 Apr. 1 3 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 . .9 9 3 6 6 6. . 3 3 1 0 . .6 6 2 6 - -. . 4 5 2 0 . . 1 2 2 4 6 6 . .9 8 7 2 6 6. . 6 7 1 6 6 6. . 3 3 1 0 . . 4 3 6 0 + + . . 2 0 6 4 . . 5 5 6 0 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 2 1 8 2 1 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 6 . . . . 7 6 6 7 2 9 6 0 6 6 6 6 . . . . 6 6 5 8 8 9 3 5 -.1 . . . 0 1 0 5 3 4 0 - - - - . . . . 3 3 4 4 1 1 9 2 - - - - . . . . 3 4 1 5 1 5 7 8 6 6 6 6 . . . . 4 7 6 5 5 5 9 0 6 6 6 6 . . . . 3 2 5 4 1 5 6 9 6 6 6 6 . . . . 6 5 6 8 3 9 8 5 - - - - . . . . 4 3 0 3 2 8 4 0 + + + + . . . . 6 2 3 1 7 7 6 0 - - . . 1 0 . . 2 3 3 8 5 0 28............... 6.72 6.87 -.15 -.49 -.64 6.47 6.28 6.87 -.59 + .35 -.24 June 125 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6. . 7 7 5 2 6 6 . . 6 8 8 0 -.0 .0 8 7 - -. . 2 1 9 6 - - . . 3 0 7 9 5 5. . 8 8 5 5 5 5 . .6 6 9 9 6 6. . 6 8 8 0 -1 -. . 9 11 9 + + 1 1 . . 1 4 5 6 . . 4 0 7 4 2 1 6 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6. . 8 7 1 2 6 6 . . 3 6 5 7 . . 3 1 7 4 - - . .0 12 7 . .2 0 5 7 5 5 . .9 8 3 7 5 5. . 7 7 1 6 6 6 . . 3 6 5 7 - - . . 9 59 6 + + 1 1 . . 4 7 9 9 . . 8 9 3 0 July 1 2 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 . . 6 7 9 2 6 6 . . 5 4 3 0 . . 1 3 6 2 -.3 .1 0 1 -.1 .4 4 3 5 5 . . 8 9 7 4 5 5 . . 7 7 1 7 6 6 . . 5 4 3 0 - - . . 6 8 3 2 + + 1 1. . 3 2 3 6 . .5 6 1 3 2 1 4 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 . . 7 6 5 6 6 6 . . 2 3 3 7 . . 4 3 3 8 - -. . 5 3 3 9 -.1 .0 5 4 5 5. . 6 7 2 7 5 5. . 6 4 1 7 6 6. .2 3 3 7 - - . . 7 7 6 6 + + 1 . . 9 2 3 8 . . 1 5 7 2 31............... 6.70 6.31 .39 -.16 .23 5.70 5.54 6.31 -.77 + .33 -.44 Aug. 7............... 6.69 6.42 .27 -.18 .09 5.78 5.62 6.42 -.80 + .61 .11 2 2 1 1 8 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 . . . 6 6 7 9 9 0 6 6 6. . . 2 2 4 7 2 8 . . . 4 4 2 2 2 7 - - -. . . 3 5 8 1 5 3 - - - . . . 1 0 3 1 9 8 5 5 5 . . . 5 6 8 5 2 0 5 5 5 . . . 4 3 5 7 7 4 6 6 6 . . . 2 4 2 7 2 8 - - -. . . 8 8 9 5 4 0 + + + . . . 6 7 4 9 8 9 . . . 1 1 3 1 6 6 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 □ SEPTEMBER 1970 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Intl„ Esti­ E pe n r d i o o d f m to a t t a e l d M ta o r n y e­ U St n a i t t e e s d r m es a t t e o d f A i f s g t h an an­ A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile 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—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.. 41,015 2,310 11,859 26,845 135 263 715 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 45 84 879 47 Mar.. . 41,205 2,512 11,903 26,790 140 269 714 1 ,520 45 84 879 47 Apr.. . 2,514 11,902 140 268 712 1.518 45 84 879 47 May. . 2,529 11,900 140 269 713 1 ,520 45 84 880 47 June.. ™U,175 2,544 11,889 *26,740 140 270 714 1.520 45 84 880 48 Julyp.. 2,547 11,934 269 714 1.520 84 880 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 ­ 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 60 2,343 289 196 4 58 92 85 3,729 4,248 77 247 141 112 19 56 2,107 304 196 5 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 1969—July., 29 89 45 3.551 4.563 130 243 158 193 79 46 2,936 363 Aug.. 29 89 45 3.551 4.564 130 243 158 193 69 46 2,938 363 Sept.. 27 89 45 3.545 4.597 130 243 158 193 64 46 2.954 371 Oct.. 27 89 45 3.547 4.597 130 243 158 193 39 46 2.954 371 Nov.. 26 89 45 3.547 4,610 130 243 158 193 39 46 2.956 371 Dec.. 26 89 45 3.547 4.079 130 243 158 193 39 46 2.956 413 1970—Jan.. 27 89 45 3.546 4,075$ 130 243 158 151 39 46 2,976 455 Feb.. 27 89 45 3.544 4.079 120 243 158 151 38 46 2.978 469 Mar.. 27 89 45 3.544 4.079 120 243 158 151 38 46 2.978 469 Apr.. 27 89 45 3.544 4.079 120 243 158 151 26 46 2.978 469 May. 27 89 45 3,541 4.079 120 243 158 151 26 46 2.981 472 June. 26 89 45 3.543 4.080 120 243 158 151 26 46 2.982 472 JulyP 26 89 45 3.543 4.080 120 243 158 151 26 46 2.983 473 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 in il e ip s ­ Po g r a t l u­ A S r a a u b d i i a 196 3 48 172 139 1,601 31 53 57 28 497 78 196 4 48 183 169 1,688 31 53 67 23 523 78 196 5 52 182 158 1,756 31 53 67 38 576 73 196 6 67 193 109 1.730 18 53 65 44 643 69 196 7 136 193 166 1.711 18 53 20 60 699 69 196 8 122 288 165 1,697 24 54 20 62 856 119 1969—July.. 110 288 166 1.703 24 54 25 52 860 119 Aug.. 107 288 167 1.703 24 54 25 45 872 119 Sept.. 103 288 168 1.711 25 54 25 45 872 119 Oct.., 1Q0 288 168 1.711 25 54 25 45 872 119 Nov.. 86 288 172 1.711 25 54 25 45 872 119 Dec.. 86 288 169 1.720 25 54 25 45 876 119 1970—Jan.., 86 288 169 1.720 27 54 25 45 882 119 Feb.. 86 288 170 1.730 27 54 26 46 882 119 Mar.. 86 288 170 1.730 27 54 40 47 890 119 Apr.. 86 288 170 1.730 27 54 49 889 119 May. 86 288 171 1.730 r32 54 50 889 119 June. 86 288 1.730 r32 54 50 890 119 July? 86 288 1,750 32 54 53 119 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ GOLD RESERVES AND PRODUCTION A 93 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions of dollars) Bank E pe n r d io o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g e ­ d U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n 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 81 92 97 93 1,291 140 401 22 -624 196 8 1,243 785 225 2,624 81 92 97 93 1,474 133 403 50 -349 1969—July. 1,171 785 225 2,643 81 92 107 93 136 403 51 -275 Aug.. 1,138 785 226 2.642 81 92 107 93 165 403 51 -268 Sept. 1,093 785 226 2.642 81 92 107 93 1,459 165 403 50 -285 Oct.. 1,128 785 226 2.642 81 92 117 93 165 403 50 -314 Nov., 1,125 785 226 2.642 81 92 117 93 165 403 50 -309 Dec.. 1,115 784 226 2.642 82 92 117 93 1,471 165 403 51 -480 1970—Jan.. 1,075 784 224 2.659 82 92 117 93 165 403 51 -488 Feb.. 1,035 784 224 2.659 82 92 117 93 165 404 51 -467 Mar., 1,002 784 224 2.659 82 92 127 93 1,469 165 404 51 -507 Apr.. 992 784 224 2.659 82 92 127 93 165 404 51 -519 May. 978 784 225 2.659 82 92 127 93 165 404 51 -530 June. 942 784 225 2.670 82 92 127 93 1,469 165 404 51 -516 JulyP 954 784 225 2.670 92 127 404 52 -519 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 i ­ A So fr u ic th a 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 N ra ic g a u ­ a Co b l i o a m­ India Japan P p h i i n l e ip s ­ t A ra u l s ia ­ o A th l e l r 196 4 1.405.0 1,018.9 30.3 7.8 51.4 133.0 7.4 6.9 12.8 5.2 16.1 14.9 33.7 66.6 196 5 1.440.0 1,069.4 26.4 2.3 58.6 125.6 7.6 5.4 11.2 4.6 18.1 15.3 30.7 64.8 196 6 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 196 7 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 196 8 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969*............ 1.420.0 1.090.7 24.8 60.1 85.2 7.5 7.7 •3.4 23.7 20.0 25.1 1969—June. 91.3 21.5 7.3 .5 .7 .4 2.2 1.5 2.2 July. 93.7 6.7 .7 .3 2.1 2.1 Aug.. 93.9 6.6 .7 .3 2.2 2.0 Sept . 95.1 21.5 7.0 .6 .3 24.8 2.2 Oct... 95.2 6.5 .6 .3 2.1 Nov.. 93.6 6.8 .6 2.0 Dec.. 89.5 7.1 .4 1.9 1970—Jan.. 92.8 7.5 .5 1.7 Feb.., 88.4 6.5 .8 Mar.. 94.3 7.1 .5 Apr.. 92.8 6.6 .6 May. 94.5 7.0 June. 96.6 7.2 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. 2 Quarterly data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 STOCK MARKET CREDIT □ SEPTEMBER 1970 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE CARRYING MARGIN ACCOUNTS ON JUNE 1962-69 (In millions of dollars) Item 1962 1963 1964 1965 1966 1967 1968 1969 DEBIT BALANCES Cash on hand and in banks............................................................................ 437 422 466 515 601 686 868 978 Securities— Borrowed............................................................................................................ 151 181 201 255 515 805 1,347 1,226 Sold, delivery pending (failed to deliver).................................................... 368 275 369 448 823 1,588 3,722 2,188 Net debit balances due from member firms of national securities ex­ changes ....................................................................................................... 191 244 224 221 257 291 484 496 Debit balances due from all other customers, exclusive of exchange members or allied exchange members in reporting firms—Total.. 3,636 4,947 5,384 5,173 5,846 6,232 19,249 8,316 I I n n s c t o o n c v k e r m ti a b r le g i b n o a n c d c o m u a n rg ts i . n .. .. a .. c .. c .. o .. u .. n ... t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 [6,1 1 3 0 0 0 4,9 1 8 6 8 0 f............. < 104 85 In cash accounts................................................................................................ 1 12,675 2,661 In other accounts.............................................................................................. J { 240 422 Net debit balances in individual investment and trading accounts of ex­ change members or allied exchange members in reporting firms. . 74 70 78 84 90 109 100 127 Debit balances in— Firm investment accounts.............................................................................. 243 247 264 325 358 477 637 696 Firm trading and underwriting accounts.................................................... 520 694 959 1 ,445 1,240 1,618 1,673 2,317 Commodity margins on deposit with banks, and commodity guaranty funds on deposit....................................................................................... 30 31 28 41 55 49 66 82 All other debit balances...................................................................................... 303 347 389 410 519 1,024 1,103 1,411 Total................................................................................................... 5,954 7,460 8,364 8,917 10,304 12,880 19,250 17,838 CREDIT BALANCES Money borrowed—Total2.................................................................................. 2,305 4,027 4,499 4,541 3,969 3,690 4,017 4,243 From banks and trust companies: In New York City.......................................................................................... 1,007 1,852 2,273 2,662 2,518 2,215 2,419 2,716 Elsewhere in the U.S..................................................................................... 732 1,303 1,353 1,180 859 903 927 822 From U.S. agencies of foreign banks............................................................. 525 815 859 711 552 494 581 483 From other lenders (not including members of national securities ex­ changes) ...................................................................................................... 41 56 14 28 39 79 89 223 Securities— Loaned................................................................................................................ 211 244 268 340 664 674 1,542 1,355 Bought, delivery pending (failed to receive)............................................... 363 289 393 433 851 1,660 4,014 2,406 Net credit balances due to member firms of national securities ex­ changes ....................................................................................................... 170 214 206 199 231 309 431 381 Credit balances due to other customers exclusive of exchange members or allied exchange members in reporting firms—Total................... 1 ,771 1 ,484 1,531 1 ,775 2,479 3,363 15,565 5,331 In free credit balances in cash accounts........................................................ 1 [2,687 2,528 In free credit balances in stock and convertible bond margin accounts 1 ........... I 728 711 In credit balances in short accounts............................................................... ]I,064 921 In other net credit balances............................................................................. J 11,086 1,170 Credit balances and money borrowed which are subordinated to general creditors under approved agreements.................................................. 51 90 111 141 154 190 243 375 Net credit balances in the individual investment and trading accounts of exchange members or allied exchange members in reporting firms.. 43 36 37 48 59 81 99 133 Credit balances in firm investment and trading accounts........................... 76 116 173 214 270 556 589 731 Net balance in capital accounts3 and profit and loss accounts and general partners’ or voting stockholders’ drawing accounts........ 771 759 866 919 1,125 1,353 1 ,736 1,936 All other credit balances..................................................................................... 193 200 279 306 504 704 1,014 948 Total................................................................................................... 5,954 7,460 8,364 8,917 10,304 12,880 19,250 17,838 MEMO: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of U.S. Govt, or its agencies...................... 23 27 10 12 18 13 61 127 Entirely by bonds other than convertible bonds and U.S. Govt. securities................................................................................................ 93 188 156 104 100 103 30 54 By nonexempt securities or mixed collateral...................................... 1 ,833 3,181 3,616 3,301 2,919 2,184 2,805 2,854 Secured by collateral of the firm or of exchange members or allied exchange members in reporting firms: Entirely by obligations of U.S. Govt, or its agencies...................... 24 19 166 320 136 336 48 198 Entirely by bonds other than convertible bonds and U.S. Govt. securities................................................................................................ 106 119 125 116 147 127 101 108 By nonexempt securities or mixed collateral.......................................... 227 492 425 686 645 926 957 886 Unsecured borrowing other than subordinated to general creditors. 1 1 * 2 3 1 13 15 Total................................................................................................... 2,305 4,027 4,499 4,541 3,969 3,690 4,017 4,243 Amount to be repaid for securities sold under repurchase agreements. .. 42 44 134 137 122 326 192 515 Number of firms................................................................................................... 337 335 331 331 328 326 346 352 1 Because of a change in reporting format in 1968, the items “debit differ somewhat because of sampling error in the monthly series, statistical balances due from all other customers exclusive of general partners or discrepancies in reporting, and differences in the date of reporting. voting stockholders” and “credit balances due to other customers ex­ 2 Excluding subordinated borrowing. clusive of general partners or voting stockholders” for prior years are not 3 Excluding subordinated indebtedness included in the item “Credit comparable with those for 1968. The difference results essentially from a balances and money borrowed, etc.,” above. change in the procedure of netting credit balances against debit balances for customers with more than one account at a brokerage firm. The sub- Note.—End-of-month figures. For a discussion of customer debit item of debit balances “in stock margin accounts” is conceptually equiva­ balances and other figures in this table, see, respectively, “Margin Account lent to credit extended to margin customers by brokers, as reported Credit,” June 1968 Bulletin, and “Statistics on Margin Accounts,” monthly in the table on Stock Market Credit, page A-36, but the data Sept. 1936 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SEPTEMBER 1970 □ STOCK MARKET CREDIT A 95 DETAILED DEBIT AND CREDIT BALANCES AND RELATED ITEMS OF MEMBER FIRMS OF THE NEW YORK STOCK EXCHANGE AND THE AMERICAN STOCK EXCHANGE CARRYING MARGIN ACCOUNTS ON JUNE 30, 1970 (In millions of dollars) NYSE AMEX Total Item member member all firms firms1 firms DEBIT BALANCES Cash on hand and in banks............................................................................. 735 11 746 Securities— 656 11 668 Sold, delivery pending (failed to deliver).................................................. 783 21 804 Net debit balances due from member firms of national securities ex- 221 4 224 Debit balances due from all other customers, exclusive of exchange members or allied exchange members in reporting firms—Total.. 5,592 24 5,615 3,826 10 3,836 In convertible bond margin accounts........................................................... 197 1 198 48 48 In cash accounts.............................................................................................. 1,152 9 1,162 In other accounts............................................................................................. 369 4 372 Net debit balances in individual investment and trading accounts of ex­ change members or allied exchange members in reporting firms... 80 1 81 Debit balances in— Firm investment accounts............................................................................ 636 29 665 Firm trading and underwriting accounts.................................................. 2,493 158 2,651 Commodity margins on deposit with banks, and commodity guaranty funds on deposit........................................................................................ 73 1 74 All other debit balances.................................................................................... 1,298 15 1,313 Total................................................................................................. 12,567 274 12,841 CREDIT BALANCES Money borrowed—Total2................................................................................ 3,715 157 3,872 From banks and trust companies: In New York City...................................................................................... 2,020 63 2,083 Elsewhere in the U.S.................................................................................. 886 6 892 From U.S. agencies of foreign banks.......................................................... 293 10 303 From other lenders (not including members of national securities ex­ changes) .................................................................................................... 516 78 594 Securities— 703 1 704 Bought, delivery pending (failed to receive)............................................ 871 23 894 Net credit balances due to member firms of national securities ex­ changes ..................................................................................................... 197 6 203 Credit balances due to other customers exclusive of exchange members or allied exchange members in reporting firms—Total................. 3,607 35 3,642 In free credit balances in cash accounts..................................................... 1,740 21 1,761 In free credit balances in stock and convertible bond margin accounts.. 505 7 512 In credit balances in short accounts............................................................. 629 5 633 In other credit balances.................................................................................. 732 4 736 Credit balances and money borrowed which are subordinated to general creditors under approved agreements................................. 448 6 454 Net balances in the individual investment and trading accounts of ex­ change members or allied exchange members in reporting firms.. 121 121 Credit balances in firm investment and trading accounts......................... 587 9 595 Net balance in capital accounts3 and profit and loss accounts and general partners’ drawing accounts................................................... 1,612 27 1,639 All other credit balances.................................................................................. 707 10 717 Total................................................................................................. 12,567 274 12,841 MEMO: Money borrowed, according to collateral: Secured by customers’ collateral: Entirely by obligations of U.S. Govt, or its agencies................... 31 31 Entirely by bonds other than convertible bonds and U.S. Govt. securities.......................................................................................... 53 53 By nonexempt securities or mixed collateral..............'................... 1,967 4 1,971 Secured by collateral of the firm or of exchange members or allied exchange members in reporting firms: Entirely by obligations of U.S. Govt, or its agencies................... 685 120 805 Entirely by bonds other than convertible bonds and U.S. Govt. securities.............................................................................................. 281 3 283 By nonexempt securities or mixed collateral................................... 688 21 709 Unsecured borrowing other than subordinated to general cred­ itors ....................................................................................................... 10 9 19 Total................................................................................................ 3,715 157 3,872 ....................... Amount to be repaid for securities sold under repurchase agreements. 1,223 1,223 Number of firms................................................................................................ 346 17 363 1 These are members of the American Stock Exchange (AMEX) that are not members of the New York Stock Exchange (NYSE); AMEX members that are also NYSE members are included under NYSE. 2 Excluding subordinated borrowing. 3 Excluding subordinated indebtedness included in the item, “Credit balances and money borrowed, etc.,” above. Note.—Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A rthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Sherman J. M aisel Andrew F. Brimmer W illiam 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 David B. Hexter, Assistant to the Board Joseph R. Coyne, Special Assistant to the Board Frank O’Brien, Jr., 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 Norm and 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 * Eugene A. Leonard, Assistant Secretary Examiner DIVISION OF SUPERVISION AND REGULATION LEGAL DIVISION Frederic Solomon, Director Thomas J. O’Connell, General Counsel ***Brenton C. Leavitt, Deputy Director Robert F. Sanders, Assistant General Counsel Frederick R. Dahl, Assistant Director Lawrence F. Noble, Assistant General Counsel Jack M. Egertson, Assistant Director Pauline B. Heller, Adviser Janet O. Hart, Assistant Director John N. Lyon, Assistant Director DIVISION OF RESEARCH AND STATISTICS John T. McClintock, Assistant Director J. Charles Partee, Director Thomas A. Sidman, Assistant Director Stephen H. Axilrod, Associate Director Tynan Smith, Assistant Director Lyle E. Gramley, Associate Director Stanley J. Sigel, Adviser DIVISION OF PERSONNEL ADMINISTRATION Murray S. Wernick, Adviser Edwin J. Johnson, Director Kenneth B. Williams, Adviser John J. Hart, Assistant Director Peter M. Keir, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES James B. Eckert, Assistant Adviser James L. Pierce, Assistant Adviser Joseph E. Kelleher, Director Stephen P. Taylor, Assistant Adviser Donald E. Anderson, Assistant Director Louis Weiner, Assistant Adviser John D. Smith, Assistant Director Joseph S. Zeisel, Assistant Adviser OFFICE OF THE CONTROLLER Levon H. Garabedian, Assistant Director John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE Harry J. Halley, Assistant Controller Robert Solomon, Director DIVISION OF DATA PROCESSING **Robert L. Sammons, Associate Director Jerold E. Slocum, Director John E. Reynolds, Associate Director John P. Singleton, Associate Director John F. L. Ghiardi, Adviser Glenn L. Cummins, Assistant Director A. B. Hersey, Adviser Henry W. Meetze, Assistant Director Reed J. Irvine, Adviser Richard S. Watt, Assistant Director Samuel I. Katz, Adviser Bernard Norwood, Adviser *On leave from the Federal Reserve Bank of Ralph C. Wood, Adviser St. Louis. Ralph C. Bryant, Associate 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 97 FEDERAL OPEN MARKET COMMITTEE A rthur F. Burns, Chairman A lfred Hayes, Vice Chairman Aubrey N. H eflin J. L. Robertson Andrew F. Brimmer J. Dewey Daane W. Braddock Hickman W illiam W. Sherrill Darryl R. Francis Sherman J. M aisel E liot J. Swan George W. M itchell 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 Herbert V. Prochnow, Secretary W illiam J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 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 P. Eastburn Bayard L. England David C. 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 Jimmie R. Monhollon 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 Robert P. Mayo 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. Laurence T. Britt Minneapolis..................55480 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 99 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Re­ serve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted.) THE FEDERAL RESERVE SYSTEM—PURPOSES AND SUPPLEMENT TO BANKING AND MONETARY STA­ FUNCTIONS. 1963. 298 pp. TISTICS. Sec. 1. Banks and the Monetary Sys­ tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. ANNUAL REPORT. 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. FEDERAL RESERVE BULLETIN. Monthly. $6.00 per $.35. Sec. 9. Federal Reserve Banks. 1965. 36 annum or $.60 a copy in the United States and pp. $.35. Sec. 10. Member Bank Reserves and its possessions, Bolivia, Canada, Chile, Colom­ Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ bia, Costa Rica, Cuba, Dominican Republic, rency. 1963. 11 pp. $.35. Sec. 12. Money Rates Ecuador, Guatemala, Haiti, Republic of Hon­ and Securities Markets. 1966. 182 pp. $.65. duras, Mexico, Nicaragua, Panama, Paraguay, Sec. 14. Gold. 1962. 24 pp. $.35. Sec. 15. Inter­ Peru, El Salvador, Uruguay, and Venezuela; 10 national Finance. 1962. 92 pp. $.65. Sec. 16 or more of same issue sent to one address, $5.00 (New). Consumer Credit. 1965. 103 pp. $.65. per annum or $.50 each. Elsewhere, $7.00 per annum or $.70 a copy. INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. 172 pp. $1.00 a copy; 10 or more sent to one FEDERAL RESERVE CHART BOOK ON FINANCIAL address, $.85 each. AND BUSINESS STATISTICS. Monthly. Annual subscription includes one issue of Historical BANK MERGERS & THE REGULATORY AGENCIES: Chart Book. $6.00 per annum or $.60 a copy in APPLICATION OF THE BANK MERGER ACT OF the United States and the countries listed above; 1960. 1964. 260 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. BANKING MARKET STRUCTURE & PERFORMANCE IN METROPOLITAN AREAS: A STATISTICAL HISTORICAL CHART BOOK. Issued annually in Sept. STUDY OF FACTORS AFFECTING RATES ON Subscription to monthly chart book includes BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or one issue. $.60 a copy in the United States and more sent to one address, $.40 each. countries listed above; 10 or more sent to one address, $.50 each. Elsewhere, $.70 a copy. THE PERFORMANCE OF BANK HOLDING COM­ PANIES. 1967. 29 pp. $.25 a copy; 10 or more THE FEDERAL RESERVE ACT, as amended through sent to one address, $.20 each. Nov. 5, 1966, with an appendix containing pro­ visions of certain other statutes affecting the FARM DEBT. Data from the 1960 Sample Survey Federal Reserve System. 353 pp. $1.25. of Agriculture. 1964. 221 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM. MERCHANT AND DEALER CREDIT IN AGRICUL­ TURE. 1966. 109 pp. $1.00 a copy; 10 or more PUBLISHED INTERPRETATIONS OF THE BOARD OF sent to one address, $.85 each. GOVERNORS, as of Dec. 31, 1969. $2.50. THE FEDERAL FUNDS MARKET. 1959. Ill pp. FLOW OF FUNDS IN THE UNITED STATES, 1939- $1.00 a copy; 10 or more sent to one address, 53. 1955. 390 pp. $2.75. $.85 each. FLOW OF FUNDS ACCOUNTS, 1945-1968. March TRADING IN FEDERAL FUNDS. 1965. 116 pp. $1.00 1970. 138 pp. $1.00 per copy; 10 or more sent a copy; 10 or more sent to one address, $.85 to one address, $.85 each. each. DEBITS AND CLEARING STATISTICS AND THEIR U.S. TREASURY ADVANCE REFUNDING, JUNE USE. 1959. 144 pp. $1.00 a copy; 10 or more 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 sent to one address, $.85 each. or more sent to one address, $.40 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 BANK CREDIT-CARD AND CHECK-CREDIT PLANS. THE DISCOUNT MECHANISM IN LEADING IN­ 1968. 102 pp. $1.00 a copy; 10 or more sent to DUSTRIAL COUNTRIES SINCE WORLD WAR II. one address, $.85 each. 1968. 216 pp. 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 THE REDESIGNED DISCOUNT MECHANISM AND more sent to one address, $.85 each. 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. JOINT TREASURY-FEDERAL RESERVE STUDY OF THE GOVERNMENT SECURITIES MARKET: STAFF THE LEGITIMACY OF CENTRAL BANKS. 1969. STUDIES—PART 1 (papers by Cooper, Bernard, 24 pp. and Scherer). 1970. 86 pp. $.50 a copy; 10 or more sent to one address, $.40 each. SELECTIVE CREDIT CONTROL. 1969. 9 pp. (Limited supplies, in mimeographed or similar SOME PROPOSALS FOR A REFORM OF THE DIS­ form, of staff papers other than those con­ COUNT WINDOW. 1969. 40 pp. tained in Part 1 are available upon request for single copies. See p. 48 of main report for a RATIONALE AND OBJECTIVES OF THE 1955 RE­ list of such papers.) VISION OF REGULATION A. 1969. 33 pp. REAPPRAISAL OF THE FEDERAL RESERVE DIS­ AN EVALUATION OF SOME DETERMINANTS OF COUNT MECHANISM: MEMBER BANK BORROWING. 1969. 29 pp. REPORT OF A SYSTEM COMMITTEE. 1968. 23 ACADEMIC VIEWS ON IMPROVING THE FEDERAL pp. $.25 a copy; 10 or more sent to one ad­ RESERVE DISCOUNT MECHANISM. 1970. 172 dress, $.20 each. pp. REPORT ON RESEARCH UNDERTAKEN IN CON­ CAPITAL AND CREDIT REQUIREMENTS OF AGRI­ NECTION WITH A SYSTEM STUDY. 1968. 47 CULTURE, AND PROPOSALS TO INCREASE pp. $.25 a copy; 10 or more sent to one AVAILABILITY OF BANK CREDIT. 1970. 160 pp. address, $.20 each. STAFF ECONOMIC STUDIES Limited supply of the following papers relating to the Discount Study, in mimeographed or similar Studies and papers on economic and financial sub­ form, available upon request for single copies: jects that are of general interest in the field of economic research. EVOLUTION OF THE ROLE AND FUNCTIONING OF THE DISCOUNT MECHANISM. 1968. 65 pp. Summaries only printed in the Bulletin. (Limited supply of mimeographed copies of full A STUDY OF THE MARKET FOR FEDERAL FUNDS. text available upon request for single copies.) 1968. 47 pp. MEASURES OF INDUSTRIAL PRODUCTION AND THE SECONDARY MARKET FOR NEGOTIABLE FINAL DEMAND, by Clayton Gehman and Cor­ CERTIFICATES OF DEPOSIT. 1968. 89 pp. nelia Motheral. Jan. 1967. 57 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 101 CHANGES IN BANK OWNERSHIP: THE IMPACT ON MEASURES OF MEMBER BANK RESERVES. July OPERATING PERFORMANCE, by Paul F. Jessup. 1963. 14 pp. Apr. 1969. 35 pp. CHANGES IN BANKING STRUCTURE, 1953-62. CHARACTERISTICS OF MERGING BANKS, by David Sept. 1963. 8 pp. L. Smith. July 1969. 30 pp. OPTIMAL FACTOR ADJUSTMENT PATHS: A GENER­ THE OPEN MARKET POLICY PROCESS. Oct. 1963. ALIZATION OF “STOCK ADJUSTMENT" DECISION 11 pp. RULES, by P. A. Tinsley. July 1969. 14 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN­ ECONOMIC FORECASTS: EVALUATION PROCE­ OVER SERIES. Mar. 1965. 4 pp. DURES AND RESULTS, by H. O. Stekler. Oct. 1969. 49 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff Economic Study by Lyle E. Gramley and SOME PROBLEMS IN FORECASTING INVENTORY Samuel B. Chase, Jr. Oct. 1965. 25 pp. INVESTMENT, by H. O. Stekler. Oct. 1969. 23 pp. CYCLES AND CYCLICAL IMBALANCES IN A CHANG­ AUTOMOTIVE TRADE BETWEEN THE UNITED ING WORLD, Staff Paper by Frank R. Garfield. STATES AND CANADA, by Kathryn A. Morisse. Nov. 1965. 15 pp. Nov. 1969. 33 pp. THE AVAILABILITY OF MORTGAGE LENDING COM­ RESEARCH ON BANKING STRUCTURE AND PER­ MITMENTS, by Robert Moore Fisher. Dec. 1969. FORMANCE, Staff Economic Study by Tynan 36 pp. Smith. Apr. 1966. 11 pp. IMPORTED INFLATION AND THE INTERNATIONAL COMMERCIAL BANK LIQUIDITY, Staff Economic ADJUSTMENT PROCESS, by Ruth Logue. Dec. Study by James Pierce. Aug. 1966. 9 pp. 1969. 147 pp. CONSUMER SAVINGS AND THRIFT INSTITUTIONS, TOWARD UNDERSTANDING OF THE WHOLE DE­ by Edward C. Ettin and Barbara Negri Opper. VELOPING ECONOMIC SITUATION, Staff Eco­ June 1970. 12 pp. nomic Study by Frank R. Garfield. Nov. 1966. 14 pp. OPTIMAL CHOICE OF MONETARY POLICY INSTRU­ MENTS IN A SIMPLE STOCHASTIC MACRO A REVISED INDEX OF MANUFACTURING CAPACITY, MODEL, by William Poole. Sept. 1970. 20 pp. Staff Economic Study by Frank de Leeuw with Frank E. Hopkins and Michael D. Sherman. Nov. 1966. 11 pp. Printed in full in the Bulletin. (Reprints available as shown in following list.) THE ROLE OF FINANCIAL INTERMEDIARIES IN U.S. CAPITAL MARKETS, Staff Economic Study REPRINTS by Daniel H. Brill with Ann P. Ulrey. Jan. (From Federal Reserve Bulletin unless preceded 1967. 14 pp. by an asterisk.) REVISED SERIES ON COMMERCIAL AND INDUS­ ADJUSTMENT FOR SEASONAL VARIATION. June TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. 1941. 11 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES SEASONAL FACTORS AFFECTING BANK RESERVES. FINANCE COMPANIES. Feb. 1967. 5 pp. Feb. 1958. 12 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. LIQUIDITY AND PUBLIC POLICY, Staff Paper by 1967. 26 pp. Stephen H. Axilrod. Oct. 1961. 17 pp. SEASONALLY ADJUSTED SERIES FOR BANK MONETARY POLICY AND THE RESIDENTIAL MORT­ CREDIT. July 1962. 6 pp. GAGE MARKET. May 1967. 13 pp. INTEREST RATES AND MONETARY POLICY, Staff BANK FINANCING OF AGRICULTURE. June 1967. Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. 23 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BULLETIN □ SEPTEMBER 1970 EVIDENCE ON CONCENTRATION IN BANKING REVISION OF CONSUMER CREDIT STATISTICS. MARKETS AND INTEREST RATES, Staff Eco- Dec. 1968. 21 pp. nomic Study by Almarin Phillips. June 1967. 11 pp. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 7 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ nomic Study by Frank de Leeuw and Edward THE PUBLIC INFORMATION ACT—ITS EFFECT ON Gramlich. June 1969. 20 pp. MEMBER BANKS. July 1967. 6 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK REVISION OF WEEKLY SERIES FOR COMMERCIAL UNDERWRITING OF MUNICIPAL REVENUE BANKS.. Aug. 1969. 5 pp. BONDS. Aug. 1967. 16 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. THE FEDERAL RESERVE-MIT ECONOMETRIC 20 pp. MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. REVISION OF MONEY SUPPLY SERIES. Oct. 1969. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. 16 pp. 1968. 7 pp. BALANCE OF PAYMENTS PROGRAM: REVISED U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN GUIDELINES FOR BANKS AND NONBANK FINAN­ 1960-67. Apr. 1968. 23 pp. CIAL INSTITUTIONS. Jan. 1970. 11 pp. MARGIN ACCOUNT CREDIT. June 1968. 12 pp. RECENT CHANGES IN STRUCTURE OF COMMER­ MONETARY RESTRAINT AND BORROWING AND CIAL BANKING. Mar. 1970. 16 pp. CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. U.S. BALANCE OF PAYMENTS AND INVEST­ MENT POSITION. Apr. 1970. 17 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. 4 pp. SDR’s IN FEDERAL RESERVE OPERATIONS AND FEDERAL FISCAL POLICY IN THE 1960’s. Sept. STATISTICS. May 1970. 4 pp. 1968. 18 pp. CHANGES IN BANK LENDING PRACTICES, 1969. HOW DOES MONETARY POLICY AFFECT THE May 1970. 5 pp. ECONOMY? Staff Economic Study by Maurice Mann. Oct. 1968. 12 pp. BANKING AND MONETARY STATISTICS, 1969. BUSINESS FINANCING BY BUSINESS FINANCE Selected series of banking and monetary statistics COMPANIES. Oct. 1968. 13 pp. for 1969 only. Mar. and July 1970. 18 pp. MANUFACTURING CAPACITY: A COMPARISON OF FINANCIAL DEVELOPMENTS IN THE SECOND TWO SOURCES OF INFORMATION, Staff Eco­ QUARTER OF 1970. Aug. 1970. 10 pp. nomic Study by Jared J. Enzler. Nov. 1968. 5 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ MONETARY RESTRAINT, BORROWING, AND CAP­ CHANGE OPERATIONS. Sept. 1970. 17 pp. ITAL SPENDING BY SMALL LOCAL GOVERN­ MENTS AND STATE COLLEGES IN 1966. Dec. CHANGES IN TIME AND SAVINGS DEPOSITS, JAN- 1968. 30 pp. UARY-APRIL 1970. Sept. 1970. 10 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 103 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers’, 14, 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, 25, 26, 37 Euro-dollars, 86 Banks and the monetary system, 18 Federal Reserve Banks, 12, 86 Corporate, current, 49 Postal savings, 18, 25 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 Bank credit proxy, 17 Bankers’ balances, 25, 28 Earnings and hours, manufacturing industries, 65 (See also Foreigners, claims on, and liabilities to) Employment, 62, 64, 65 Banks and the monetary system, 18 Euro-dollar deposits in foreign branches of Banks for cooperatives, 39 U.S. banks, 86 Bonds (See also U.S. Govt, securities): 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, 25, 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, 13, 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, 94 Hours and earnings, manufacturing industries, 65 Debits to deposit accounts, 15 Housing permits, 62 Debt (See specific types of debt or securities) Housing starts, 63 Demand deposits: 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 59-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 59-A hguorht 4-A segap o t era secnerefeR( A 104 FEDERAL RESERVE BULLETIN □ SEPTEMBER 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, 72, 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 New security issues, 45, 46 Manufacturers: Ownership of securities of, 24, 28, 37, 38 Capacity utilization, 62 Yields and prices of securities, 34, 35 Production index, 59, 62 State member banks, 21, 23 Margin requirements, 10 Stock market credit, 36, 94 Member banks: Stocks: Assets and liabilities, by classes, 19, 24 New' issues, 46, 47 Borrowings at Reserve Banks, 6, 12 Yields and prices, 34, 35 Deposits, by classes, 11 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 Dealer transactions, positions, and financing, 44 Open market transactions, 14 Federal Reserve Bank holdings, 4, 12, 15, 42, 43 Foreign and international holdings, 12, 81, 84, 86 Payrolls, manufacturing index, 62 International transactions, 81, 84 Personal income, 69 New issues, gross proceeds, 46 Postal Savings, 18, 25 Open market transactions, 14 Prices: Outstanding, by type of security, 42, 43, 45 Consumer and wholesale commodity, 62, 66 Ownership of, 42, 43 Security, 35 Yields and prices, 34, 35, 91 Prime rate, commercial banks, 33 United States notes, 16 Production, 58, 62 Utilities, production index, 59, 62 Profits, corporate, 48, 49 Veterans Administration, 50, 51, 52, 53 Real estate loans: 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,-,'', CHicagoj Omafia* Hncivnatu Kansas Cittj^ fCfiarLotul VC Oklahoma Cittf V '51- A tW Dallas Jioustcn ‘Dram by'RW (jafvin, Cart * (p THE FEDERAL RESERVE SYSTEM ) q a ^ <7 Q> HAW AII Legend Boundaries of Federal Reserve Districts ------Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System © Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis