Federal Reserve Bulletin, 1971-04

F E D E R A L R E S E R V E B U L L E T I N * ★ ★ * APRIL 1971 BOARD OF GOVERNORS □ THE FEDERAL RESERVE SYSTEM □ WASHINGTON, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN NUMBER 4 □ VOLUME 57 □ APRIL 1971 CONTENTS 269 U.S. Balance of Payments and Investment Position 283 Staff Economic Studies: Summary 285 Changes in Time and Savings Deposits, July-October 1970 298 Changes in Bank Lending Practices, 1970 303 Statements to Congress 320 Record of Policy Actions of the Federal Open Market Committee 328 Law Department 363 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 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

U.S. Balance of Payments and Investment Position DURING 1970 the U.S. balance of payments reflected the cooling down of the economy after a prolonged period of excess demand, as well as some moderation in the rate of advance in economic activity abroad after the earlier months of the year. Both here and abroad, however, costs and prices continued to rise sharply. Confronted with a sluggish economy and rising unemployment, U.S. public policy shifted early in 1970 toward promoting resumption of real growth, while in Europe the emphasis remained on policies of restraint. The net effect of cyclical demand conditions here and abroad on the international trans­ actions of the United States was to permit some progress toward an improved current account, but differences in financial market conditions set off a massive reversal of the inflows of private liquid funds that had been brought into the United States during the 1968-69 period of credit stringency. U.S. PAYMENTS BALANCES Even though it was generally anticipated that as U.S. monetary policy eased there would be a return flow to Europe of funds borrowed by U.S. banks, the size and speed of the redistribution of claims on the United States from foreign commercial banks —including U.S. bank branches—to foreign monetary authorities were greater than expected. Moreover, as discussed in the final section of this article, the redistribution has continued through the first quarter of this year. The 1970 balance of payments deficit on the official reserve transactions basis—before allocation of Special Drawing Rights 1960-64, annual average. 1965-70, — was $10.7 billion (Table 1, line 12). For 1969 and 1970 annual data. 1970 excludes SDR t • j i 1 1 r> • • allocation. combined the annual deficit on this basis of measurement aver- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN a APRIL 1971 aged $4 billion, about double the annual average of 1960-67. Since the earlier period, the goods and services balance has become smaller, while inflows of foreign nonliquid capital have grown considerably. There has been an increase in recorded out­ flows of U.S. private capital and, especially in 1969, in the unidentified outflows through errors and omissions. The very large 1970 deficit had as a counterpart a $7.3 billion increase in officially held claims on the United States, while about one-third of the deficit was financed by a $3.3 billion reduction in U.S. reserve assets, apart from the allocation of SDR’s. The aggregate increase in foreign central banks’ holdings of dollar assets in 1970 was considerably larger than the $7.3 billion increase in these claims on the United States. The additional TABLE l U.S. BALANCE OF PAYMENTS, 1960-70 In billions, of dollars 1960-64 1965-67 Line Item average average 1968 1969 1970 1 Exports of goods and services 1.......................................................... 31.3 43.0 50.6 55.5 63.0 Merchandise, excluding military..................................................... 21.7 28.8 33.6 36.5 42.0 Military sales....................................................................................... .6 1.0 1.4 1.5 1.5 Investment income 2.......................................................................... 4.3 6.3 7.7 8.8 9.6 Other services...................................................................................... 4.8 6.8 8.0 8.7 9.8 2 Imports of goods and services............................................................. -25.4 -37.1 -48.1 -53.6 -59.3 Merchandise, excluding military..................................................... -16.2 -24.6 -33.0 -35.8 -39.9 Military expenditures......................................................................... -3.0 -3.7 -4.5 -4.9 -4.8 Investment income 2.......................................................................... -1.2 -2.1 -2.9 -4.5 -5.1 Other services...................................................................................... -5.0 -6.7 -7.7 -8.4 -9.5 3. Balance on goods and services 1......................................................... 5.9 5.9 2.5 1.9 3.7 Merchandise, excluding military..................................................... 5.4 4.2 .6 .6 2.2 Military sales and expenditures...................................................... -2.4 -2.7 -3.1 -3.3 -3.4 Investment income 2.......................................................................... 3.2 4.3 4.8 4.4 4.5 Other services...................................................................................... -.2 .1 .3 .3 .3 4 Remittances and pensions, net............................................................ -.7 -1.0 -1.1 -1.2 -1.4 5 U.S. Govt, grants 3 and capital, net, excluding nonscheduled repayments....................................................................................... -3.5 -3.9 -4.2 -3.7 -3.5 6 -4.5 -4.6 -5.4 -5.2 -6.4 7 Foreign capital, 4 excluding reserve transactions 5 and excluding liabilities to commercial banks abroad..................................... .9 1.7 6.8 4.6 4.4 8 Errors and omissions............................................................................. -1.0 -.7 -.5 -2.8 -1.3 9 Adjusted over-all balance (sum of lines 3 through 8)................... -3.0 -2.7 -2.0 -6.4 -4.4 10 Change in U.S. liabilities to commercial banks abroad............... .5 1.4 3.4 9.2 -6.5 11 Nonscheduled repayments of U.S. Govt, credits and net U.K. official transactions in U.S. securities other than Treasury issues................................................................................................. .4 -.1 .3 -.1 .2 12 Balance on official reserve transactions basis 6 (sum of lines 9,10, and 11).............................................................................................. -2.1 -1.5 1.6 2.7 -10.7 Financed by: 1.0 .6 —.9 -1.2 3.3 (of which gold)................................................................................ (.8) (1.1) (1.2) (-1.0) (.8) Increase (+) in U.S. liabilities to reserve holders....................... 1.2 .9 -.8 -1.5 7.3 MEMO: Balance on liquidity basis 6............................................................... -2.8 -2.1 .2 -7.0 -4.7 1 Excluding transfers under military grants. tions included in the standard classification of official reserve transac- 2 Excluding undistributed earnings of subsidiaries. tions (line 12). In addition net U.K. official transactions in U.S. 3 Excluding military grants. securities other than U.S. Treasury issues are excluded from line 4 Including assets in the United States of international and regional 7 and are included in line 11. institutions other than the IMF. 6 Excluding the 1970 SDR allocation of $867 million. 5 “Reserve Transactions” excluded from line 7 are those transac- Note.—Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 271 increase resulted in large part from placements of foreign central bank reserves in dollar deposits with commercial banks outside the United States. Such placements did not reduce the total dollar reserves of a central bank placing funds in the Euro-dollar market —though its claims on the United States would fall—but they provided funds for an expansion of Euro-dollar lending to private borrowers outside the United States. As these borrowers con­ verted the loan proceeds into local currencies (or avoided a need to buy dollars in the exchange market) there was an increase in the reserves—in the form of claims against the United States— of the central banks of the countries to which loans flow. Despite the large intake of dollars into foreign reserve holdings, conditions in exchange markets were relatively orderly in 1970, and there was little evidence of speculative flows into currencies or into gold. Contributing to this situation were the adjustments of the exchange rates of France and Germany in the latter part of 1969, the upward adjustment of the exchange rate of the Canadian dollar after May 1970—though a new parity has not yet been fixed—and the provision of a more orderly process of reserve creation through SDR’s. Moreover, it was generally recognized that the United States had sharply curtailed economic activity in a serious effort to reduce inflation, and that, as policy shifted toward renewal of growth, changed monetary conditions could be expected to result in large return flows of liquid funds borrowed earlier. Efforts to eliminate excess demand in the U.S. economy yielded some improvement in the balance on goods and services. This was the primary factor in the reduction of the adjusted over-all balance (Table 1), from a deficit of $6.4 billion in 1969 to $4.4 billion in 1970. The gain in the current account was partly offset by larger recorded outflows of U.S. private capital, but at the same time the net flows of unidentified capital that probably cause most of the fluctuations in the “errors and omis­ sions” appear to have subsided to more normal levels. Developments in the U.S. balance of payments in 1970 under­ lined the problems of reducing international imbalances. Failure of the balance on goods and services to improve after mid­ year reflected the strong tendency for imports to rise, even under conditions of underemployment of resources, as well as the difficulties encountered in export markets when the rate of advance of economic activity abroad slackens. Moreover, U.S. direct investors showed a keener interest in expanding foreign Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN □ APRIL 1971 rather than domestic productive facilities—though their use of funds from U.S. sources was still restricted—presumably reflect­ ing a judgment that a faster-growing demand in foreign countries would put more pressure on foreign capacity. Foreign investment in the U.S. stock market was also sensitive to U.S. business condi­ tions, so that gains in the trade account were partly offset by lower investment inflows in the early part of the year. CURRENT TRANSACTIONS The balance on transactions in goods and services for 1970 registered a surplus of $3.7 billion, an improvement of $1.7 billion from 1969, but still far below the average $6 billion surpluses of the 1960-67 period. The gain was largely in BALANCE on GOODS and SERVICES w m n rm m merchandise trade, as discussed below. A very small increase was recorded in the service sector, mainly as a result of slightly larger net investment income receipts and increased fees and royalties from direct investments. Among other service items, the large negative balance on military transactions in 1970 was unchanged from 1969; increased outlays resulting from military pay raises offset decreased outlays from reductions in troop 1960-64, annual average. 1965-70, strength and military construction activity abroad. Expenditures half years at seasonally adjusted annual rates. “Goods” exclude mili­ by U.S. tourists showed the greatest yearly increase since 1967— tary goods; “Services” include mili­ tary transactions. the year of the Canadian Exposition. During 1970 the courses of developments in the trade and service sectors diverged. The balance on trade excluding military exports rose through the first half—reaching peak annual rates of $5 billion in June and July—then dropped to a slightly lower rate in the third quarter, and declined further in the fourth INVESTMENT INCOME PAYMENTS and RECEIPTS quarter, as imports increased sharply and exports fell. In con­ m m ff DDL ms------------------\ trast, the balance on services was relatively flat through the first three quarters, but then strengthened considerably in the fourth quarter, as the decline in U.S. interest rates reduced income payments to foreigners while income receipts from direct invest­ ment rose. Sales of military equipment were also greater in the fourth quarter, mainly because of increased deliveries to Israel and the United Kingdom. The surplus on goods and services was 1960-64, annual average. 1965-70, at a rate of about $3 billion in the fourth quarter of 1970, no half years at seasonally adjusted higher than in the first quarter and down from the midyear rate. annual rates. Merchandise trade. The U.S. merchandise trade surplus in 1970 rose to $2.2 billion on the balance of payments basis from the low $0.6 billion levels of both 1968 and 1969. After mid-1970, however, the surplus declined steadily, and by January-February 1971 it had fallen to a $0.5 billion annual rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 273 MERCHANDISE TRADE In 1970 increases in exports exceeded increases in imports with m m w m m 45 all major areas except Canada, so that the U.S. trade balance with other areas improved. An especially large improvement of more than $1 billion in our balance with continental Europe ac­ counted for more than three-fifths of the year-to-year increase in the total trade balance. Smaller improvements were registered in our balances with Latin America, the United Kingdom, Japan, and the less-developed countries of Asia and Africa. The U.S. balance with Canada declined in 1970 as imports 1960-64, annual average. 1965-69 from Canada increased and exports to that country fell. The half years and 1970 quarters, all at seasonally adjusted annual rates. reduction in exports to Canada was associated with the general weakness of demand in the Canadian economy last year but also reflected the adverse effects of the automotive strike in the United States in the fourth quarter of 1970. Excluding trade in automotive products, exports to Canada rose slightly, but not as much as imports. U.S. EXPORTS U.S. nonmilitary exports in 1970 were $42.0 billion, an in­ TfmoNsHJnJoTnrs crease of 15 per cent from the strike-depressed level of 1969. (An adjustment for the effect of the 1969 U.S. dock strike would re­ duce the increase to 12 per cent.) About one-third of the total rise (unadjusted) in the value of exports in 1970 represented price increases, as measured by unit values. The increase in real volume can be attributed largely to sustained strength in foreign demand for U.S. agricultural products, initial sales of the new “jumbo jets,” and a general strength of demand abroad associated with the growth of economic activity in most foreign industrial 1967-69 half years and 1970 quar­ ters, all at seasonally adjusted an­ countries, though the rate of growth slowed during the year. nual rates. Agricultural exports accounted for roughly a fourth of the total rise in exports from 1969 to 1970. After three successive years of decline, agricultural exports in 1970 increased by 21 per cent. About half the increase reflected larger wheat and soybean shipments. The rise in soybean exports resulted from a decline in the availability of competing oils abroad, whereas increased shipments of grains reflected reduced production in Europe where supplies were the lowest since 1966. Exports of nonagricultural commodities increased by approx­ imately 14 per cent in 1970. Deliveries of civilian aircraft were up somewhat, reflecting initial sales of the new jumbo jets. However, shipments of automotive equipment to Canada fell 10 per cent, mainly because of the automotive strike. Exports of machinery and industrial supplies—chemicals, steel, paper Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN □ APRIL 1971 INDUSTRIAL PRODUCTION products, and coal—accounted for most of the 16 per cent increase in other nonagricultural exports. A key factor in the upsurge in exports of machinery and industrial materials was the high level of demand and economic activity in foreign markets. However, the flattening of foreign industrial activity in the second half of 1970 led to a decline in these nonagricultural exports in the fourth quarter, particularly to the industrial countries such as Canada, those in continental Western Europe, and to a lesser extent Japan. Steel exports, which had expanded rapidly after mid-19 69 as a result of strong tSeriy°data. adiusted OECD quar‘ demand and reduced availabilities of steel in Europe, fell abruptly in the third quarter of 1970 and declined further in the fourth quarter. Exports of other industrial materials also fell or leveled off in the second half of 1970. Despite the sharp increase in U.S. exports, the U.S. share of total world exports to non-U.S. markets declined slightly in 1970, continuing its downward trend of the past decade; in 1970 our share was 18.2 per cent compared with an average of 19.4 per cent during 1964-67 and 21.0 per cent in 1960. The U.S. share of world trade in manufactured goods in the January-September 1970 period was also lower than in the year-earlier period. The largest declines in U.S. shares were in transport equipment (including military aircraft) and electrical machinery. U.S. imports in 1970 were $39.9 billion on the balance of payments basis, 11 per cent above their 1969 level. The increase was spread fairly evenly over the major commodity groups. Imports of foodstuffs, nonfood consumer goods (other than U.S. IMPORTS and GNP CONSTANT 1964 DOLLARS automobiles), and industrial materials each increased by nearly RATIO SCALE, 1960=100 $1 billion; imports of machinery and automobiles each rose by $0.5 billion. Price rises (as measured by unit values) accounted for about two-thirds of the total rise in the value of imports from 1969 to 1970. Price increases were responsible for half or more of the increased value of foods, automobiles from Europe and Japan, other consumer goods, and industrial materials. All of the increase in the value of machinery imports reflected higher prices. After adjustment for price increases, the volume of total imports rose by 3 per cent from 1969 to 1970. This upward movement in real imports last year is unlike the behavior of imports in past periods of sluggishness in the domestic economy. ^Exciudes^utomotive imports from imports jn t^e 2960-61 recession—the last prolonged period of internot elsewhere specified. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 275 ruption of normal growth—imports in real terms were 10 per cent smaller than in the previous year. In neither 1960-61 nor 1970 did total gross national product in constant dollars show much change. Thus, if the 1960-61 experience had been duplicated last year—that is, if the composition of imports, the relative movements in the major components of GNP, and the response of each category of imports to changes in the corresponding category of GNP had been the same from 1969 to 1970 as from 1959-60 to 1960-61—imports in constant 1964 dollars would have been $4 billion less in 1970 than they actually were. (These compari­ sons have been made using GNP and imports, both in real terms, for the four quarters extending from the middle of 1960 to the middle of 1961. The level of activity and flow of imports in that period are compared with the figures for the preceding fourquarter period. For the recent experience, the comparison is be­ tween the calendar years 1969 and 1970.) There are a number of factors that may explain the difference in the behavior of real imports in the two periods. The first is that the movements of the various components of GNP in 1970 were different from those in 1960-61. Personal consumption ex­ penditures—apart from purchases of cars—and expenditures for producers’ durable equipment in real terms both held up much better than they did in 1960-61. A major factor in the recent slowdown was the decline in government expenditures, which probably have less direct impact on imports than other compo­ nents of the GNP. Imports (in 1964 dollars) might have been $1 billion less than they actually were in 1970 if relative movements in the components of domestic demand from 1969 to 1970 had been the same as from 1959-60 to 1960-61. Most of the divergence in the behavior of real imports, how­ ever, can be attributed to other factors. Two such factors are the greater acceptance of foreign products by American consumers and businesses in the last 10 years, and the changed supply condi­ tions abroad resulting from the somewhat different patterns of foreign business cycle developments. The continuous availability of an increasingly wide variety of foreign products of good quality, attractively designed and sold at competitive prices, and the expansion in facilities to market and service these products, have made imports an increasingly more important part of domestic markets. Automobiles are probably an outstanding example of the changed status of foreign products in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN □ APRIL 1971 the domestic market. In both 1960-61 and 1970, periods of reduced total sales of new cars, there was a decided shift in domestic car purchases toward smaller cars. However, while in 1970 foreign cars nearly maintained their 1969 share of the rapidly expanding small-car market—despite the entry of the new domestic subcompacts—in 1960 the introduction of new domestic compact cars reduced very sharply the number of imported cars and their share in total sales of compact cars. IMPORTS and GNP by COMPONENTS-1964 dollars RATIO SCALE, 1960=100 RATIO SCALE, 1960=100 The different business cycle patterns abroad in the two periods undoubtedly contributed to the strength of real imports in 1970. Industrial production in European countries and Japan was on the upswing in 1960-61, and increased demand in home markets limited those countries’ ability to export. This time, however, foreign industrial production peaked in the first half of 1970. As pressure on supply capabilities abroad eased, greater quantities of goods became available, inducing foreign producers to become more aggressive in marketing their goods in other countries. Steel is an item that was particularly affected by such changes in supply conditions, and this was a primary reason for the heavy inflow of steel into the United States in the second half of 1970. In contrast, there was a sharp decline in steel imports in 1960, largely as the result of a return to more normal import levels after the 1959 U.S. steel strike. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 111 A special factor that contributed to the high level of real imports in 1970 was the general shortage in fuel and energy supplies. Requirements for oil are not directly related to short-run changes in business conditions but rather are determined by longer-run consumption needs. While total oil consumption in the United States increased by 4 per cent in 1970, the volume of imports of petroleum products spurted, rising by 20 per cent, as electric utilities shifted away from coal because of more stringent pollution controls. The net recorded outflow of private U.S. and foreign capital— apart from foreign liquid funds—was nearly $1.5 billion higher in 1970 than in 1969, though it was still far below the annual average of the 1960-67 period. Outflows of U.S. private capital were recorded at $6.4 billion in 1970, $1.1 billion more than in 1969. Most of the increase resulted from higher direct investment outflows; long-term borrowing abroad to finance these invest­ ments was slightly lower (Table 2, line 9) and increasingly took the form of borrowing from foreign banks. It also seems likely that under the revised regulations of the Office of Foreign TABLE 2 PRIVATE CAPITAL FLOWS In millions of dollars; outflow from U.S. (—) 1960-64 1965-67 Line Item average average 1968 1969 1970 1 U.S. and foreign private capital, net.............................. -3,432 -2,010 4,652 8,352 -8,023 (Net flow, excluding foreign liquid assets in U.S.).. (-4,188) (-3,339) (842) (-364) (-1,781) 2 U.S. private assets abroad................................................ -4,504 -4,588 -5,412 -5,233 -6,351 3 Direct investment outflows.............................................. -1,846 -3,422 -3,209 -3,070 -3,967 4 Net purchases of foreign securities................................. -827 -835 -1,254 -1,494 -878 5 Claims reported by U.S. banks....................................... -1,372 -43 253 -541 -883 6 Short-term assets related to direct investments 1......... 0 -126 -1,139 -187 -150 7 -459 -162 -63 59 -473 8 Foreign private nonliquid assets in U.S........................... 316 1,249 6,254 4,869 4,570 9 Related to U.S. direct investments abroad 2............... 0 508 2,859 1,720 1,615 10 U.S. corporate stocks 3.................................................... 182 288 2,096 1,565 702 11 Other U.S. securities (excluding Treasury issues)4... 24 — 191 149 518 661 12 Other nonliquid assets in U.S.4...................................... 110 644 1,150 1,066 1,592 13 Foreign private liquid assets in U.S................................. 756 1,329 3,810 8,716 -6,242 14 International and regional institutions (excluding IMF)........................................................................ 95 -343 48 -60 177 15 Foreign private nonbank.................................................. 159 311 375 -441 92 16 Commercial banks............................................................. 502 1,362 3,387 9,217 -6,511 MEMO: Capital transactions related to U.S. direct invest­ ments (lines 3, 6, and 9).......................................... -1,846 -3,040 -1,489 -1,537 -2,502 1 Unexpended proceeds of the new issues included in line 9, held abroad. 2 Includes new security issues sold abroad for the purpose of financing direct investments plus all long-term borrowing abroad by U.S. corporations, although the latter may include some borrowing for other purposes. 3 Excludes transactions included in line 9. 4 Includes transactions of international and regional institutions other than the IMF. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 FEDERAL RESERVE BULLETIN □ APRIL 1971 Direct Investments a considerable part of the rise in short-term borrowing abroad by nonbanks (part of line 12, Table 2) could have been used to finance U.S. direct investments abroad. About two-thirds of the $900 million increase in direct-investment outflows in 1970 was for investment in Western Europe, and there were substantial increases also in outflows to Canada, Latin America, and Australia. These larger outflows reflected primarily an enormous increase—22 per cent—in plant and equipment expenditures of foreign affiliates. For Western Europe the increase in such expenditures was 30 per cent; this amounted to $1.4 billion, of which the rise in capital outflows from the United States financed only about 40 per cent. No doubt the restrictions on direct investment outflows stood in the way of an even larger rise, given the relative easing of U.S. PRIVATE CAPITAL FLOWS BILLIONS OF DOLLARS capital markets. Substantially increased outflows of U.S. private capital were also reported by U.S. banks, but outflows subject to the ceilings of the Federal Reserve voluntary foreign credit restraint program increased by only about $100 million. The greater part of the reported outflow either took the form of credits exempt because they were associated with Export-Import Bank loans, or repre­ sented increased foreign assets reported by U.S. agencies of for­ eign banks. An increase in nonbank claims on foreigners resulted largely from a single transaction of $286 million that was part of the financing for a direct investment by foreigners in the United 1960-64, annual average. 1965-68, annual data. 1969-70, quarters at States. seasonally adjusted annual rates. Offsetting these enlarged outflows, net U.S. purchases of foreign securities in 1970 dropped considerably. Part of this drop resulted from lower placements of Canadian new issues in the U.S. market, as the Canadian authorities encouraged the use of their domestic capital market; another part reflected a switch by American investors from large purchases of foreign corporate stocks in 1969—$300 million of Japanese stocks alone—to a small net liquidation in 1970. This switch was encouraged by the application in January 1970 for the first time of the Federal Reserve guidelines to Japanese equities, but reflected more gen­ erally the better showing of U.S. equity markets after midyear. Foreign private capital, other than liquid funds, flowed into the United States in 1970 at a rate only slightly less than in 1969 (Table 2), and far above the rates prevalent before borrowing abroad was encouraged by the introduction of mandatory con- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 279 trols on U.S. direct investments in 1968. Flows representing borrowing abroad by U.S. corporations to finance their foreign affiliates were probably larger than in 1969, though the part in­ cluded under corporate short-term borrowing abroad (part of line 12, Table 2) is not separately identifiable. The main differ­ ence from 1969 inflows was the much smaller amount of net purchases by foreigners of U.S. corporate stocks. Changes in such purchases seemed to reflect the performance of U.S. equity mar­ kets; foreign investors sold U.S. corporate stocks, on balance, through the period of sharp decline in the U.S. market, but then purchased again in sizable volume beginning in June. Just as the outstanding feature of capital accounts in 1969 had been the huge inflow of foreign private liquid funds to the United States, the return flow of a large part of those funds dominated 1970 capital flows (Table 2). Most of the flow represented repayment of Euro-dollars borrowed by U.S. banks, primarily through their foreign branches. Gross liabilities to such branches, which had reached a peak of over $15 billion in October 1969, were reduced to $6.9 billion by the end of 1970. Several measures were taken to cushion the rate of outflow, including a change in relevant reserve requirements at the end of November 1970, sales of $1.5 billion of special Export-Import Bank notes to the foreign branches in the first quarter of 1971, and a special Treasury issue of $1.5 billion in early April. Never­ theless, the high cost of Euro-dollar borrowings compared with the sharply lower cost of domestic sources of funds led banks to continue to reduce the use of Euro-dollar funds for domestic purposes. By early April 1971, the total of such gross borrowings outstanding, plus the $3.0 billion of special obligations issued, was down to about $5.0 billion. (These figures are on a balance of payments basis and are substantially smaller than the banks’ reserve free bases as computed for regulatory purposes.) In addition to changes in recorded capital flows, a considerable volume of unrecorded short-term capital flows is probably reflected in the fluctuations in the residual errors and omissions item of the accounts. As shown in Table 1 (line 8), unrecorded net payments in 1970 dropped from the very large figure of 1969 to a more normal rate, probably reflecting the lower relative and absolute interest yield on Euro-dollar deposits, the absence of large speculative flows into foreign currencies, and perhaps unreported borrowings abroad by U.S. companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN □ APRIL 1971 INTERNATIONAL The total value of U.S. assets and investments abroad rose by INVESTMENT POSITION about $8 billion in 1970, while the value of foreign assets and investments in the United States rose by about $6 billion (Table 3). These changes reflect not only capital flows recorded in the balance of payments but also reinvested earnings of direct investments and, at times, sizable swings in market values of securities. The composition of U.S. foreign assets differs sig­ nificantly from that of U.S. liabilities to foreigners, and the basis of valuation for the various types of assets is inconsistent, so that the calculation of a net over-all investment position may be quite misleading. Most of the increase during 1970 in U.S. private investments abroad, which brought them to a total value of $119 billion, TABLE 3 INTERNATIONAL INVESTMENT POSITION OF THE UNITED STATES In billions of dollars Item 1950 1960 1968 1969 1970c U.S. assets and investments abroad.......................... 54.4 85.8 146.8 157.8 166.1 Private investments...................................................... 19.0 49.4 102.5 110.2 119.4 Long-term, total......................................................... 17.5 44.4 89.5 96.0 104.1 11.8 31.9 65.0 70.8 77.2 Securities................................................................ 4.3 9.5 18.2 18.7 19.9 Banking claims and other.................................. 1.4 3.1 6.4 6.6 7.0 Short-term, total....................................................... 1.5 5.0 13.0 14.1 15.3 Reported by banks............................................... .9 3.6 8.7 9.6 10.7 .6 1.4 4.3 4.5 4.6 U.S. Government credits and claims1................... 11.1 17.0 28.5 30.7 32.3 U.S. monetary reserve assets.................................... 24.3 19.4 15.7 17.0 14.4 Monetary gold........................................................... 22.8 17.8 10.9 11.9 11.1 1.4 1.6 4.8 5.1 3.3 Foreign assets and investments in U.S...................... 17.6 41.2 81.2 90.8 96.4 Nonliquid obligations................................................. 8.8 19.7 47.6 48.9 53.1 Private obligations................................................... 8.7 19.4 42.9 43.9 48.1 Direct...................................................................... 3.4 6.9 10.8 11.8 13.0 U.S. corporate stocks.......................................... 2.9 9.3 19.6 18.1 18.8 Other long-term................................................... 1.7 2.2 10.0 11.0 12.6 Short-term reported by nonbanks................... .7 1.0 2.5 3.0 3.7 U.S. Government obligations.................................. .1 .3 4.7 4.9 5.0 Liquid liabilities............................................................ 8.8 21.5 33.6 41.9 43.3 To private foreigners, total...................................... 4.3 9.1 20.1 28.9 22.7 To foreign banks (including U.S. bank branches)........................................................... 2.1 4.8 14.5 23.6 17.1 To others................................................................ 2.2 4.3 5.6 5.3 5.5 To official accounts, total 2.................................... 4.6 12.4 13.5 13.0 20.6 Liabilities of U.S. banks.................................... 2.4 4.0 5.6 7.2 6.0 U.S. Government obligations........................... 2.2 8.4 7.9 5.8 14.7 1 Other than U.S. monetary reserve assets. 2 Includes, in addition to foreign reserve holders, other foreign government agencies. e Estimated. Note.—Data for 1950, 1960, 1968, and 1969 are as published by the Office of Business Economics, U.S. Dept, of Commerce; data for 1970 are estimates based on capital flows as reported by the OBE, plus rough allowances for reinvested earnings, changes in market valuations, and currency revaluations. The basis of valuation is as follows: direct investments at book values as appearing, in principle, on the books of the affiliates rather than the head offices; securities at market values; other assets and liabilities at stated values in the accounts of banks and other debtors or creditors. For more detailed data see Survey of Current Business, U.S. Dept, of Commerce, October 1970. Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. BALANCE OF PAYMENTS 281 reflected the net outflow of $6 billion of U.S. capital; the remainder reflected mainly the reinvestment of foreign earnings and a small net improvement in the market price of foreign bonds. The total of U.S. Government foreign assets fell by about $1.0 billion to $46.7 billion, but within this total, holdings of reserve assets fell $2.6 billion, even though the initial allocation of SDR’s added $867 million to reserves. The U.S. reserve position in the International Monetary Fund fell by nearly $400 million, holdings of convertible currencies, mainly sterling, fell by $2.2 billion as swap drawings were repaid, and the gold stock was re­ duced by nearly $800 million. Meanwhile, the total of U.S. Gov­ ernment credits and other nonreserve claims abroad rose $1.6 bil­ lion to more than $32 billion, but these assets are generally not available to finance deficits, and some part is scarcely distinguish­ able from grants. Foreign investments in, and other nonliquid claims on, the United States rose by about $4 billion in 1970, mainly as a result of net capital inflows plus some reinvestment of earnings. Market prices of stocks at the end of 1970 were not much changed compared to the end of 1969. Liquid foreign claims on the United States rose by only $1.4 billion, compared to more than $8 billion in 1969. Liabilities to foreign official accounts rose by $7.6 billion, while liabilities to private foreign accounts were reduced by $6.2 billion. After these changes, such liabilities to private foreigners were $22.7 billion, about $2.5 billion higher than at the end of 1968, and more than double the amount at the end of 1960. Liquid claims on the United States held by foreign official accounts were $20.6 billion at the end of 1970, an in­ crease of $7.1 billion over the amount at the end of 1968. How­ ever, foreign official holdings of near-liquid U.S. obligations were reduced from $5.1 billion at the end of 1968 to $3.9 billion at the end of last year. RECENT DEVELOPMENTS jn the early months of 1971 the over-all deficit in the U.S. balance of payments has been large and the trade balance has diminished below the rate in the fourth quarter of 1970. Widening disparities in international interest rates have encouraged capital outflows, including continued repayments of U.S. banks’ borrow­ ings from the Euro-dollar market. Reserve gains of several countries have been extraordinarily large. Much of the current difficulty stems from the difference in the phase of the business cycle between the United States and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

other major industrial countries. The U.S. economy is just beginning to work out of a period of underemployment of resources, while in most other countries attention is still con­ centrated on restraining demand and resisting cost increases, and only tentative moves toward some easing of restraints had been made by mid-April. These conditions are not likely to support improvement in the U.S. balance on goods and services. At the same time, the stances of monetary policy here and abroad have been such that interest rate differences have tended to draw interest-sensitive funds from the United States. Measures have been taken in the United States to offset some of the higher cost to U.S. banks of retaining their Euro-dollar borrowings by the sale of special issues of Export-Import Bank notes and Treasury obligations to the foreign branches. Moreover, U.S. short-term interest rates have moved up recently. In other countries credit markets are still relatively taut, but there has been a series of discount rate cuts aimed at reducing international interest rate disparities, and in a few cases also at revitalizing lagging economic activity. Nevertheless, it is clear that major imbalances are persisting in the balances of payments of major countries and that insufficient progress has been made toward removing them. □ 282 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ In all cases the analyses and conclusions nors of the Federal Reserve System and of set forth are those of the authors and do not the Federal Reserve Banks undertake studies necessarily indicate concurrence by the that cover a wide range of economic and Board of Governors, by the Federal Reserve financial subjects, and other staff members Banks, or by the members of their staffs. prepare papers related to such subjects. In Single copies of the full text of each of some instances the Federal Reserve System the studies or papers summarized in the finances similar studies by members of the Bulletin are available in mimeographed academic profession. form. The list of Federal Reserve System From time to time the results of studies publications at the back of each Bulletin that are of general interest to the economics includes a separate section entitled “Staff profession and to others are summarized—or Economic Studies” that enumerates the stud­ they may be printed in full—in this section ies for which copies are currently available of the Bulletin. in that form. Study Summary OPERATING POLICIES OF BANK HOLDING COMPANIES— PART I Robert J. Lawrence—Staff, Board of Governors Prepared as a staff paper in early 1971 Investigations into the performance of mul­ should give an indication of how the new tibank holding companies have taken on multibank companies will deal with their added significance in view of the recent banks. rapid growth of this form of banking organi­ It has been argued that the replacement zation and, especially, the passage of the of independent unit banks by holding com­ 1970 amendments to the Bank Holding pany systems can yield benefits to the public Company Act. That legislation places the through greater efficiency of operation, a present one-bank holding companies under better allocation of bank credit, and the pro­ the same regulatory standards as the multi­ vision of a wider range of banking services. bank companies; hence, except in the States Realizing such benefits would appear to re­ where statewide branching is permitted or quire some centralization of operations and multibank holding companies are prohib­ decision-making in the holding company. ited, many of the one-bank companies prob­ This paper analyzes and discusses the ably will acquire additional banks. While responses of holding company managements this study was confined to investigating the to a survey of their operating policies; these policies of the present multibank holding responses were obtained from questionnaires companies toward their banks, the findings that were sent to the holding companies and 283 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

from interviews with holding company offi­ phasis probably should be given to the cials. The study had two general objectives: performance characteristics of the applying (1) to determine whether the economic and company as to generalizations about the organizational characteristics of holding performance of holding companies. companies were related to the degree of In general, the operational areas in which centralization of decision-making, and (2) holding companies exercise the greatest con­ to determine the areas of operation in which trol are those relating to bank investments holding company control or influence was and to the correspondent relationships of greatest. the subsidiary banks. Areas in which holding The results of the analysis suggest that companies appear to exercise little control holding company policies cannot be ex­ are decisions regarding individual loan plained by the organizational or economic applications, the structure of the loan port­ characteristics of the companies. Companies folios of the banks, and pricing of banking differ considerably in the amount of control services. exercised over their subsidiary banks, but Responses to the survey indicate that the there appears to be no relationship between holding companies are very circumspect the degree of centralization and variables with regard to their pricing policies. Such such as the size of the holding company, the caution stems from the outcomes of several geographic distribution of its banks, the antitrust cases involving pricing policies of number of years the company has been in affiliated companies. This paper discusses existence, and the size distribution of its the antitrust implications of holding com­ banks. It is concluded, therefore, that a pany pricing policies and concludes that holding company’s policies can only be the holding companies probably have been determined by investigating the management overly cautious in this area. The current philosophy of the senior officers of the par­ views of the Justice Department on this ticular company. The results also suggest matter were requested, and the Department’s that, in the Federal Reserve’s evaluation of response is presented in an Appendix to the holding company applications, as much em­ study. □ 284 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Time and Savings Deposits, July-October 1970 In the 3 months ending October 31, 1970, To bring their offering rates in line with interest rates were reduced sharply on large- market rates on competing instruments, denomination time deposits at most big com­ most big banks made sizable reductions in mercial banks, which hold the bulk of these the rates paid on short-term large-denominadeposits. At the same time, offering rates on tion time deposits in the 3 months ending consumer-type deposits—regular savings October 31. Even so, market rates declined and other small-denomination time deposits faster than bank rates, and as a result com­ —which are widely held throughout the mercial banks experienced huge inflows of banking system, remained at or close to large-denomination time deposits. By con­ regulatory ceilings at nearly all banks. Since trast, on time deposits held mainly by con­ October, however, reductions in rates paid sumers, where competing savings institutions on consumer-type deposits have been an­ had not lowered rates, most banks main­ nounced by a number of large banks, and tained their rates at the ceiling level. Inflows rates on large-denomination deposits have into these categories of deposits in the most been reduced sharply further. recent survey period continued at a rela­ These rate movements reflected the down­ tively slow pace. ward pressure from interest rates in all mar­ kets during most of 1970. In the period NET CHANGES IN DEPOSITS covered by this survey,1 short-term interest rates continued the decline begun earlier in Total time and savings deposits held by in­ the year, and by the end of October some dividuals, partnerships, and corporations rates were lower than at any time since early (IPC) at insured commercial banks in­ 1969. Rates in longer-term markets also creased by nearly $ 11 billion, or close to 6 declined, and the rate charged prime busi­ per cent, in the 3 months ending October 31, ness customers by banks was cut from 8 to 1970 (Table 1). This was about the same IV2 per cent in September after having been rate of growth as in the preceding quarter, reduced by Vi percentage point earlier in but represented a considerable jump from the year. the average quarterly increase in the 6 months ending April 30, 1970. Note.—Caroline H. Cagle of the Board’s Division Large negotiable certificates of deposit of Research and Statistics prepared this article. held mainly by businesses accounted for a 1 Previous surveys of time and savings deposits at major part of the recent expansion as they all member banks were conducted by the Board of Governors in late 1965, in early 1966, and quarterly had in the April-July period. These deposits beginning in 1967. Beginning in 1968 the quarterly rose by $5.8 billion, or 44 per cent, and surveys were expanded to provide figures for all in­ sured commercial banks and were conducted jointly represented more than half of the increase in by the Board of Governors and the Federal Deposit all time and savings deposits, IPC, in the Insurance Corporation. The results of earlier surveys have appeared in Bulletins for 1966-70, the most July-October period. This growth pushed recent being November 1970, pp. 803-13. the amount outstanding to $18.8 billion on Appendix tables for this article appear on pp. 292-97. October 31, well above the previous peak in 285 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 FEDERAL RESERVE BULLETIN □ APRIL 1971 TABLE 1 TYPES OF TIME AND SAVINGS DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS HELD BY INSURED COMMERCIAL BANKS ON SURVEY DATES IN 1970 Number of issuing banks Amount (in millions of dollars) Percentage change in deposits) (quarterly rate) Type of deposit 1970 1970 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31 Apr. 30 July 31 Oct. 31 Jan. 31— July 31— July 31, 1970 Oct. 31, 1970 Total time and savings deposits. . 13,148 13,315 13,324 13,335 173,404 177,585 187,743 198,485 4.1 5.7 Savings......................................... 12,638 12,876 12,842 12,791 89,898 90,511 92,226 94,453 1.3 2.4 Time deposits in denominations of less than $100,000^— total...................................... 12,974 13,024 13,074 66,672 66,402 68,898 69,720 1.7 1.2 Accounts with original ma­ turity of— Less than 1 year................ n.a. 11,656 12,014 12,031 n.a. 42,871 40,594 39,664 -2.3 1 up to 2 years................... n.a. 11,860 12,155 12,220 n.a. 14,133 15,149 15,500 2.3 2 years or more................. n.a. 9,399 9,923 10,342 n.a. 9,398 13,154 14,556 10.7 All maturities: CD’s— Issued mainly to con­ sumers 1...................... 12,165 n.a. n.a. n.a. 45,863 n.a. n.a. n.a. Issued mainly to others2 6,339 n.a. n.a. n.a. 3,161 n.a. n.a. n.a. Open accounts— Passbook or state­ ment form 3............... 2,753 3,162 3,117 2,971 16,039 (16,320) (17,489) (17,793) 4.5 (1.7) Other 4. . ....................... 1,641 n.a. n.a. n.a. 1,609 n.a. n.a. n.a. Time deposits in denominations of $100,000 or more............. 4,497 5,469 5,392 5,522 11,835 14,900 20,432 28,058 31.5 37.3 Negotiable CD’s............... 2,001 2,750 2,921 2,917 6,445 8,788 13,024 18,792 42.3 44.3 N O o p n en n e a g c o c t o ia u b n l t e . .. C ... D ... ’ .. s .. . . . . . . . . . . . . . . . . 2,5 4 8 7 7 5 3,206 2,976 3,048 3 1 , , 9 4 8 0 6 4 1 6,112 7,407 9,266 17.3 25.1 Christmas savings and other special funds........................... 7,894 8,278 8,366 7,997 4,999 5,772 6,187 6,253 11.4 1.1 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 January 31, April 30, and July 31, 1970, the in­ 2 Includes all time CD’s in denominations of less than $100,000 for formation was reported by a probability sample of all insured com­ which, in the judgment of the reporting bank, 50 per cent or more of mercial banks; for October 31, 1970, the data for member banks were the outstanding volume of deposits was issued to businesses. 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. the October 1968 survey. Other large-de- ary-April period. Large banks, nearly all of nomination time deposits also forged up­ which were paying the AV2 per cent maxi­ ward—by $1.9 billion, or 25 per cent— mum rate, experienced a faster rate of bringing the amount outstanding at the end growth than smaller banks, about one-fourth of October to a record $9.3 billion. Nearly of which were still offering depositors 4 per two-fifths of these deposits are estimated to cent or less. be held by consumers (nonbusinesses), who Consumer-type time deposits—all time also found that banks were offering more deposits in denominations of less than attractive rates than were other outlets com­ $100,000 other than savings—increased peting for funds. only about $800 million, or 1 per cent, in Regular savings deposits at insured com­ the most recent survey period. In the previ­ mercial banks rose about $2.2 billion, or ous 3 months such deposits had expanded by nearly 2.5 per cent, in the 3 months ending $2.5 billion. The recent growth was almost October 31—up considerably from the in­ entirely in accounts with original maturity creases of $ 1.7 billion in the quarter ending of 2 years or more, where most banks were July 31 and only $600 million in the Janu- paying the 53A per cent ceiling. In this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 287 maturity range deposits expanded by nearly time deposits, IPC (other than savings), 11 per cent, compared with a decline or held by businesses varied considerably by little change in the lower-yielding, shorter- size of bank—from more than half for banks maturity categories. With market rates de­ in the largest size class to 8 per cent for clining rapidly, small depositors also were banks in the smallest size group. In the reaching for the highest-yielding instrument smaller banks even the large-denomination available and, in addition, were locking in deposits are held to a considerable extent by those yields for relatively long periods. consumers. The proportion of total time and savings deposits, IPC, held by businesses increased BUSINESS-HELD TIME DEPOSITS substantially in the year ending October As had been true in earlier surveys, business 1970—from less than one-fifth to more than holdings of time deposits were concentrated one-third. This resulted mainly from the in the large-denomination instruments. On large increase during 1970 in deposits in October 31, 1970, businesses held nearly denominations of $100,000 and over. In three-fourths of all time deposits in denomi­ late 1969 these deposits had been at a nations of $100,000 or more at member sharply reduced level owing to heavy attri­ banks—but this proportion was about one- tion during that year when yields on compet­ eighth for time deposits in smaller denomina­ ing market instruments were substantially tions. (See Table 2.) above ceiling rates on time deposits. Among Reflecting principally differences in types large negotiable CD’s, where corporate of customers served, the proportion of total holders have always predominated, business TABLE 2 ESTIMATED PERCENTAGE OF TIME DEPOSITS, IPC, HELD BY BUSINESSES AT MEMBER BANKS ON OCTOBER 31, 1970 Denominations of less than $100,000 Denominations of $100,000 and over All time deposits Maturing in- Non- Group (excluding negotiable pass book All All types Negotiable CD’s and savings) maturities Less 1 up to 2 years CD’s open than 2 years or more account one year Ml banks reporting information................... 36.3 12.6 14.6 9.2 9.3 72.5 76.4 63.5 Jize of bank (total deposits in millions of dollars): Under 10..................................................... 8.0 5.9 6.7 5.3 5.4 60.2 65.2 53.4 10-50........................................................... 11.8 6.9 8.0 6.2 4.6 53.0 55.6 49.9 50 100......................................................... 19.2 9.7 10.4 9.8 7.0 51.7 52.7 50.6 100-500....................................................... 29.2 12.2 14.2 8.1 8.4 62.3 65.1 56.2 500 and over.............................................. 51.6 18.5 20.5 17.5 12.9 77.2 80.8 68.0 '.R. district: Boston......................................................... 37.5 8.8 10.0 6.1 3.1 68.1 68.1 68.3 New York.................................................. 57.0 18.2 20.9 20.8 9.9 74.4 82.5 56.0 Philadelphia............................................... 25.6 13.3 19.0 9.0 7.0 66.7 69.3 60.2 Cleveland.................................................... 23.2 7.0 7.6 6.3 6.0 72.2 74.4 65.6 Richmond................................................... 25.4 9.1 10.4 7.8 6.0 67.0 65.0 69.8 25.7 12.7 15.2 9.2 9.6 58.7 64.6 48.9 Chicago....................................................... 25.5 8.5 9.1 7.2 7.1 71.2 83.5 42.6 St. Louis..................................................... 17.2 7.0 7.9 5.9 6.5 69.1 71.6 65.8 Minneapolis............................................... 19.2 7.0 7.3 7.5 5.4 75.0 83.5 44.3 Kansas City................................................ 20.5 8.6 10.2 5.9 6.8 58.2 57.7 59.7 Dallas.......................................................... 35.5 10.7 13.3 7.4 5.5 57.4 59.6 45.5 50.9 24.4 27.6 18.1 18.1 84.3 81.7 88.7 Note.—Data are for member banks of the Federal Reserve System the member banks that did report accounted for a substantial propor­ only. No insured nonmember banks reported this information, and tion of the total deposits of these types in all member banks. Christmas there was some nonreporting among member banks. Nevertheless. savings and other special funds are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN □ APRIL 1971 holdings increased from 73 to 76 per cent months earlier. Nearly all large banks were in the 12 months ending October 1970. offering the ceiling rate to their customers, Even among small-denomination instru­ but this proportion declined as bank size ments, the percentage held by businesses decreased to a low of about seven-tenths for rose from less than 8 to nearly 13 per cent. banks in the smallest size group (total de­ posits of less than $10 million). Most of RATE CHANGES AND RATE STRUCTURE the small banks that had not moved to the ceiling rate were paying 4 per cent, but As in late 1966 and early 1967 when market about 675 of these banks reported a rate of interest rates were declining, bank offering 3 per cent or less. rates on passbook savings and consumertype time deposits were sluggish in receding About two-thirds of the banks with total from ceiling levels. On deposits with the deposits of $100 million and over, which shortest original maturity—under 1 year— account for a major portion of all large virtually all banks in late October 1970 were negotiable CD’s outstanding, lowered their paying the 5 per cent ceiling (Table 3). Ex­ most common offering rate on these deposits cept for a few banks—mainly small institu­ between July and October. The most com­ tions—that had moved the rate up to the mon rate as used in this survey is the rate— maximum or had recently introduced these regardless of maturity—that brought in the deposits, the situation was little changed largest dollar volume of new deposits in the from the previous survey. For maturities of 30 days immediately preceding the survey 1 to 2 years and 2 years and over, more than date. As of October 31 over half of these nine-tenths of the banks that offer these de­ large banks reported their most common posits (holding an equivalent proportion of rate on large negotiable CD’s was between all deposits in these categories) were paying 6.75 and 7 per cent. Three months earlier depositors the 5 Vi and 53A per cent ceilings, most big banks had reported a rate of 7.5 respectively. Again these proportions were or 8 per cent, with about 1 per cent of the about the same as they had been 3 months issuing banks indicating a rate of more than earlier. Nevertheless a few banks had low­ 8 per cent. ered the offering rate below the regulatory On nonnegotiable CD’s and open account ceiling on the longer maturities by October deposits in denominations of $100,000 or 31. (See Appendix Table 9.) These reduc­ more, about two-fifths of the large banks re­ tions were offset by rate increases at other duced their most common rate in the Julybanks. October period—a smaller proportion than On regular savings deposits rates paid for large negotiable CD’s. This reflects in were still being increased to the AVi per cent part the fact that offering rates last July were ceiling in the most recent quarter by a few not so high on “other” large-denomination banks. As in previous surveys, rates on sav­ deposits as on negotiable CD’s. As of ings deposits were lower in relation to the October 31 a higher proportion of small regulatory ceiling than those on consumer- banks than of large banks were continuing to type time deposits. Slightly more than three- offer high rates on these deposits: more than fourths of all insured commercial banks in­ two-fifths of the issuing banks with total de­ dicated that they were paying the AVi per posits of less than $100 million reported a cent maximum on October 31. These banks rate of 7.5 per cent or more, compared with held more than nine-tenths of all savings half this proportion for the banks of larger deposits—a little higher proportion than 3 size. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 289 TABLE 3 TIME AND SAVINGS DEPOSITS, IPC, HELD BY INSURED COMMERCIAL BANKS ON OCTOBER 31 AND JULY 31, 1970, BY TYPE OF DEPOSIT, BY MOST COMMON RATE PAID ON NEW DEPOSITS IN EACH CATEGORY, AND BY SIZE OF BANK Size of bank (total deposits in Size of bank (total deposits in millions of dollars) millions of dollars) All banks All banks Group Less than 100 100 and over Less than 100 100 and over Oct. July Oct. July Oct. July Oct. July Oct. July Oct. July 31 31 31 31 31 31 31 31 31 31 31 31 Number of banks, or percentage distribution Amount of deposits (in millions of dollars) or percentage distribution Savings deposits: Issuing banks............................................ 12,791 12,842 12,269 12,338 522 504 94,453 92,226 38,718 38,004 55,735 54,222 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............................................ 8.0 8.4 8.2 8.6 2.7 3.8 2.3 2.9 3.8 4.7 1.3 1.7 3.51-4.00................................................ 15.7 15.5 16.0 15.9 7.3 6.3 6.7 6.3 10.0 8.8 4.4 4.5 4.01-4.50................................................ 76.3 76.1 75.8 75.5 90.0 89.9 91.0 90.8 86.2 86.5 94.3 93.8 Time deposits in denominations of less than $100,000: Maturities less than 1 year: Issuing banks........................................ 12,031 12,014 11,512 11,516 519 498 39,664 40,594 20,196 21,008 19,468 19.586 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 4.50 or less............................................ 2.0 2.4 2.0 2.5 1.7 1.6 .1 .2 .2 .3 O) .1 4.51 5.00................................................ 98.0 97.6 98.0 97.5 98.3 98.4 99.9 99.8 99.8 99.7 100.0 99.9 Maturities of 1 up to 2 years: Issuing banks........................................ 12,220 12,155 11,717 11,672 503 483 15,500 15,149 11,634 11,485 3,866 3,665 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 5.00 or less............................................ 5.9 6.5 5.8 6.5 7.2 6.6 9.5 9.7 9.8 10.7 8.8 6.8 5 01 5.25................................................ .3 . 1 .3 . 1 .2 .3 . 1 .4 . 1 . 1 5.26-5.50................................................ 93.8 93.4 93.9 93.4 92.8 93.2 90.2 90.2 89.8 89.2 91.2 93.1 Maturities of 2 years and over: Issuing banks........................................ 10,342 9,923 9,855 9,454 487 469 14,556 13,154 7,867 7,211 6,689 5,944 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 5.00 or less............................................ 1.6 1.4 1.5 1.2 5.5 5.6 2.3 5.3 1.5 3.6 3.2 7.5 5.01-5.25................................................ (!) (!) (i) (!) .2 . 1 (!) (l) (!) .2 5.26-5.50................................................ .9 .9 .9 .9 1.5 .6 .6 .4 .5 .2 .7 .6 5.51 5.75................................................ 97.5 97.7 97.6 97.9 92.8 93.8 97.0 94.3 98.0 96.2 95.9 91.9 Time deposits in denominations of $100,000 or more: Issuing banks............................................ 5,522 5,392 5,002 4,894 520 498 28,058 20,432 4,580 4,132 23,477 16,299 Percentage distribution by most com­ mon rate paid on new deposits: 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 6.00 or less............................................ 15.3 12.3 16.2 13.2 7.7 4.4 4.3 3.8 10.6 9.7 3.0 2.3 6.01 6.50................................................ 13.1 7.2 12.6 7.2 18.5 6.4 18.6 3.3 14.8 6.8 19.4 2.5 6.51-6.75................................................ 9.2 4.7 7.9 4.5 21.2 6.4 34.5 4.9 11.2 4.7 39.1 5.0 6.76-7.00................................................ 21.8 18.6 21.3 18.4 26.2 20.3 24.7 17.8 26.4 15.1 24.4 18.5 7.00-7.25................................................ 2.4 1.8 2.0 1.8 6.0 2.0 2.8 2.4 2.1 1.7 2.9 2.5 7.26-7.50................................................ 37.7 51.1 39.5 52.1 19.4 41.8 14.6 29.8 34.2 53.8 10.8 23.7 7.50-8.00................................................ .4 4.0 .4 2.7 1.0 17.7 .4 37.3 .4 7.6 .4 44.8 8 00-8.50................................................ .1 .3 .1 . 1 1.0 .1 .7 .3 .6 .7 1 Less than 0.05 per cent. While rate ranges of lA or of a percentage point are shown in this Note.—The most common interest rate for each instrument or and other tables, the most common rate reported by most banks was group of instruments refers to the basic stated rate per annum (before the top rate in the range; for example, 4.00, 4.50, etc. On business-type compounding) in effect on the survey date that was generating the time deposits in denominations of $100,000 and over, however, some largest dollar volume of deposit inflows. If the posted rates were un­ large banks have had on past surveys rates at intervals of % of a per­ changed during the 30-day period just preceding the survey date, the centage point. rate reported as the most common rate was the rate in effect on the Time deposits in denominations of $100,000 and over include ne­ largest dollar volume of deposit inflows during that 30-day period. If gotiable and nonnegotiable CD’s and open accounts. Each bank was the rate changed during that period, the rate reported was the rate grouped by the most common rate paid on the largest dollar volume of prevailing on the largest dollar volume of inflows from the time of the deposits and all of the deposits of these types were included at this last rate change to the survey date. rate. Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN □ APRIL 1971 AVERAGE INTEREST RATES posits the rate rose between July 31 and October 31 by only 2 basis points to 5.25 The weighted average interest rate on all per cent. forms of time and savings deposits, IPC, at insured commercial banks of 5.08 per cent On time deposits in denominations of on October 31, 1970, was almost unchanged $100,000 or more rates declined sharply. from the previous survey on July 31 (Table The average rate on negotiable CD’s was 4). 6.84 per cent on October 31—down 72 On regular savings deposits the rate was basis points since July 31. On other largeunchanged at 4.43 per cent, while on total denomination instruments, the rate was 6.77 small-denomination consumer-type time de­ per cent—down 36 points. TABLE 4 AVERAGE OF MOST COMMON INTEREST RATES PAID ON VARIOUS CATEGORIES OF TIME AND SAVINGS DEPOSITS, IPC, AT INSURED COMMERCIAL BANKS ON OCTOBER 31, 1970 Time deposits in denominations of— Savings All and Less than $100,000 $100,000 or more Bank location and size of bank time and small de­ (total deposits in millions of dollars) savings nomina­ Savings deposits tion time Maturing indeposits Total Nego­ All tiable other Less than 1 up to 2 years CD’s 1 year 2 years or more All banks: All size groups................................ 5.08 4.78 4.43 5.25 5.00 5.45 5.73 6.84 6.77 Less than 10................................ 4.98 4.95 4.33 5.32 5.00 5.46 5.74 6.87 6.73 10-50............................................. 4.94 4.82 4.40 5.26 5.00 5.44 5.73 6.98 6.71 50-100........................................... 4.97 4.77 4.43 5.25 5.00 5.49 5.75 7.01 6.99 100-500......................................... 5.02 4.72 4.43 5.22 5.00 5.44 5.70 6.95 6.74 500 and over................................ 5.25 4.73 4.48 5.22 5.00 5.48 5.74 6.78 6.77 Banks in— Selected large SMSA’s 1: All size groups............................ 5.16 4.73 4.47 5.23 5.00 5.46 5.72 6.82 6.75 Less than 10............................ 4.87 4.78 4.39 5.30 5.00 5.47 5.73 6.89 6.77 10-50......................................... 4.91 4.74 4.43 5.26 5.00 5.46 5.72 6.96 6.69 50-100....................................... 4.95 4.74 4.44 5.24 5.00 5.50 5.75 7.07 6.96 100-500.................................... 5.07 4.71 4.44 5.21 5.00 5.43 5.68 6.97 6.65 500 and over........................... 5.27 4.74 4.49 5.22 5.00 5.48 5.74 6.77 6.77 All other SMSA’s: All size groups............................ 4.95 4.76 4.38 5.25 5.00 5.46 5.73 6.96 6.92 Less than 10............................ 4.86 4.79 4.24 5.31 5.00 5.46 5.74 6.77 6.79 10-50......................................... 4.92 4.81 4.39 5.28 5.00 5.48 5.74 7.04 6.76 50-100....................................... 5.01 4.78 4.42 5.24 5.00 5.48 5.75 7.03 7.12 100-500..................................... 4.96 4.75 4.42 5.23 5.00 5.44 5.71 6.88 6.94 500 and over........................... 4.91 4.61 4.23 5.25 5.00 5.47 5.73 7.11 6.79 Banks outside SMSA’s: All size groups................................ 4.97 4.90 4.38 5.28 5.00 5.44 5.74 6.96 6.75 Less than 10................................ 5.02 4.99 4.33 5.33 5.00 5.46 5.74 6.89 6.69 10-50............................................. 4.96 4.87 4.38 5.26 5.00 5.42 5.74 6.99 6.71 50-100........................................... 4.96 4.82 4.44 5.25 5.00 5.47 5.74 6.82 6.83 100-500......................................... 4.87 4.71 4.40 5.27 5.00 5.46 5.75 7.04 6.85 500 and over................................ 5.05 4.88 4.50 5.21 5.00 5.50 5.75 7.25 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 Youngstown-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 291 Small variations in rates paid by size of est rate paid was the 5 per cent ceiling, the bank were evident in the most recent survey. proportion of banks with a requirement as On passbook savings the smaller the bank low as $100 dropped to about three out of the lower the average rate paid—with a 10 banks. spread of 15 basis points on October 31 In the longer-maturity groups—1 to 2 between the rate for the smallest and the years and 2 years and over—two-fifths of largest bank size classes. On consumer-type the banks stated that to receive the statutory time deposits the reverse was true: the ceiling rates of 5 Vi and 53A per cent, re­ smaller the bank size group the higher the spectively, the bank required a depositor to average rate—with a spread of 10 basis put up between $500 and $1,000. This con­ points. This reflected a higher percentage of trasts with only three-tenths of the banks large than small banks that had lowered the that had requirements in this range for ma­ rate paid on the longer maturities of con­ turities of less than 1 year with a rate of 5 sumer-type time deposits in the most recent per cent. quarter. On large negotiable CD’s the largest Minimum deposit requirements of $ 1,000 banks (total deposits of $500 million or or more were reported by relatively few more) were paying somewhat lower average banks. Only 4 per cent of the banks offering rates than smaller institutions. ceiling rates on instruments with a maturity of less than 1 year had a requirement as high MINIMUM DENOMINATION REQUIREMENTS as this. Nevertheless, the proportion was AND MAXIMUM PERIOD FOR RATE GUAR­ double (8 per cent) for banks offering ceil­ ANTEE ing rates on instruments with a maturity of The minimum deposit required to purchase 2 years or more. a consumer-type time deposit instrument on Size of bank also influenced minimum de­ October 31, 1970, was $500 or less at more posit requirements. On consumer-type time than half of all member banks. At most of deposits in comparable maturity ranges, the the remaining banks it did not exceed largest banks had higher minimum deposit $1,000. This was true in the three maturity requirements than smaller banks. categories: less than 1 year, 1 up to 2 years, About one out of every 10 member banks and 2 years and over, as shown in Appendix that issued consumer-type time deposits with Table 7. These requirements were about the maturities of 2 years or more reported the same as reported in the October 1969 bank would guarantee the rate for a specified survey. period. For the most part these were banks Minimum requirements varied somewhat that reported a most common rate of 5% with the interest rate paid. For the relatively per cent. The maximum period for which few banks that offered an instrument with a three-fifths of the banks would guarantee maturity of less than 1 year at a rate of 4 the rate was 5 years, but one-fourth of the per cent or less, for example, two out of banks indicated a period of 5 to 10 years three of the banks had a minimum require­ and one-tenth, more than 10 years. (See Ap­ ment no greater than $100. When the inter- pendix Table 8.) □ NOTES TO APPENDIX TABLES 1-6: 1 Less than $500,000. a few banks that had discontinued issuing these instruments but - Omitted to avoid individual bank disclosure. still had some deposits outstanding on the survey date. Time deposits, Note.—Data were compiled from information reported by all open account, exclude Christmas savings and other special accounts. member banks and by a probability sample of all insured non­ Dollar amounts may not add to totals because of rounding. member commercial banks. The latter were expanded to pro­ In the headings of these tables under “Most common rate paid vide universe estimates. (percent)” the rates shown are those being paid by nearly all reporting Figures exclude banks that reported no interest rate paid and banks. However, for the relatively few banks that reported a rate in that held no deposits on the survey dates, and they also exclude between those shown, the bank was included in the next higher rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN □ APRIL 1971 APPENDIX TABLE 1—SAVINGS DEPOSITS Most common interest rates paid by insured commercial banks on new deposits on October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 3.50 4.00 4.50 3.50 4.00 4.50 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS AH banks................................................................................ 12,791 1,020 2,007 9,764 94,453 2,223 6,314 85,915 Size of bank (total deposits in millions of dollars): Less than 10...................................................................... 7,286 752 1,421 5,113 6,897 383 1,092 5,422 10-50................................................................................... 4,465 235 518 3,712 22,676 834 2,271 19,570 50-100................................................................................. 518 19 31 468 9,144 264 490 8,390 100-500............................................................................... 404 12 32 360 20,185 457 1,616 18,112 500 and over..................................................................... 118 2 5 111 35,551 (2) 846 34,420 Federal Reserve district: Boston................................................................................ 317 4 75 238 4,079 16 516 3,547 New York.......................................................................... 443 9 39 395 15,531 284 1,204 14,043 Philadelphia....................................................................... 464 65 73 326 6,000 552 588 4,859 Cleveland............................................................................ 754 65 110 579 9,092 142 543 8,407 Richmond.......................................................................... 819 17 61 741 7,460 121 276 7,063 Atlanta................................................................................ 1,457 97 338 1,022 6,255 249 975 5,031 Chicago.............................................................................. 2,568 258 402 1,908 17,046 481 1,361 15,204 St. Louis............................................................................. 1,184 67 192 925 2,954 130 248 2,577 Minneapolis....................................................................... 1,310 300 398 612 1,882 203 295 1,384 Kansas City....................................................................... 1,841 82 277 1,482 3,338 29 236 3,074 Dallas.................................................................................. 1,260 56 41 1,163 3,401 17 72 3,311 San Francisco................................................................... 374 1 373 17,415 (2) 17,414 APPENDIX TABLE 2—TIME DEPOSITS, !PCf 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 October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.75 5.00 4.50 4.75 5.00 or less or less NUMBER OF BANKS MILLIONS OF DOLLARS All banks.................................................................. 12,031 234 11,791 39,664 48 39,610 Size of bank (total deposits in millions of dollars): Less than 10........................................................ 6,769 171 6,595 4,484 20 O) 4,464 10-50.................................................................... 4,234 53 4,181 11,727 24 11,702 50-100.................................................................. 509 4 505 3,985 1 3,984 100-500................................................................ 401 6 392 7,441 2 7,432 500 and over........................................................ 118 118 12,027 12,027 Federal Reserve district: Boston.................................................................. 308 1 307 1,266 (2) 1,266 New York............................................................ 416 15 399 3,105 (2) 3,096 Philadelphia......................................................... 322 21 300 1,899 (2) 1,894 Cleveland.............................................................. 657 25 631 2,808 (2) 2,800 Richmond............................................................ 730 20 710 3,022 3,018 Atlanta................................................................. 1,373 30 1,343 3,278 3,275 Chicago................................................................ 2,387 40 2,347 9,531 9,526 St. Louis............................................................... 1,138 17 1,120 2,220 (2) 2,214 Minneapolis......................................................... 1,109 11 1,097 2,334 (2) 2,332 Kansas City.......................................................... 1,876 43 1,833 2,209 2.201 Dallas................................................................... 1,342 10 1,332 2,309 2,307 San Francisco...................................................... 373 1 372 5,682 (2) 5,681 For notes to Appendix Tables 1-6, see page 291. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 293 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 October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 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............................................................................. 12,220 25 697 32 1J,466 15,500 12 1,470 43 13,974 Size of bank (total deposits in millions of dollars):. . . . Less than 10............................................................... 6,998 387 6,578 4,694 386 4,296 10-50..................................................................................... 4,213 261 3,928 5,743 710 4,989 50-100................................................................................... 506 13 493 1,197 36 1,161 100-500................................................................................. 389 26 363 1,993 248 1,745 500 and over................................................................... 114 10 104 1,873 91 1,782 Federal Reserve district: Boston.............................................................................. 215 17 196 90 (2) 3 (2) 86 New York....................................................................... 383 44 333 682 (2) 155 3 524 Philadelphia.................................................................... 399 42 352 1,086 (2) 100 24 962 Cleveland.............................................................. 681 116 556 1,061 301 752 Richmond....................................................................... 729 19 707 919 (2) 34 <2> . 884 Atlanta............................................................................. 1,376 118 14 1,242 1,583 (2) 283 1,288 Chicago........................................................................... 2,542 78 2,458 3,385 156 (2) 3,226 St. Louis.......................................................................... 1,209 111 1,098 1,642 256 1,386 Minneapolis.................................................................... 1,223 45 1,177 1,303 91 (2V 1,211 Kansas City.................................................................... 1,863 65 1,796 1,466 (2) 54 1,412 Dallas............................................................................... 1,230 34 1,193 1,201 (2) 26 (2) 1,174 San Francisco................................................................ 370 8 358 1,082 (2) 11 (2) 1,069 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 October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 4.50 4.50 or 5.00 5.25 5.50 5.75 5.00 5.25 5.50 5.75 less ile°srs NUMBER OF BANKS MILLIONS OF DOLLARS All banks..................................... 10,342 15 155 91 10,078 14,556 331 16 86 14,122 Size of banks (total deposits in millions of dollars): Less than 10................................ 5,650 54 54 5,531 2,013 22 10 1,981 10-50............................................. 3,717 70 29 3,615 4,480 (2) 87 (2) 18 4,371 50-100........................................... 488 6 1 481 1,374 6 (2) 1,358 100-500......................................... 376 18 5 350 2,508 (2) 159 (2V 47 2,289 500 and over........................... 111 7 2 101 4,182 (2) 57 (2) 4,124 Federal Reserve district: Boston...... a ..................... 212 11 201 182 12 170 New York............................... 333 15 5 3Q9 1,184 (2) 40 (2) 1 1,129 Philadelphia........................... 319 8 3 306 1,485 (2) 110 (2) 5 1,368 Cleveland................................ 571 29 7 532 1,187 O) 11 31 1,144 Richmond............................... 651 3 3 642 1,115 O) 9 O) 1,106 Atlanta.................................... 1,106 30 4 1,071 1,176 (2) 72 5 1,099 Chicago................................... 2,173 32 36 2,104 2,988 (2) 15 28 2,944 St. Louis................................. 1,008 ..j. 7 1,0Q0 892 (2) 885 Minneapolis........................... 966 2 963 976 (2) (2) 974 Kansas City........................... 1,584 9 1,564 804 (2) 5 798 Dallas..................................... 1,092 15 1,060 774 (2) 55 713 San Francisco......................... 327 326 1,792 (2) 1,792 For notes to Appendix Tables 1-6, see p. 291. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN □ APRIL 1971 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 October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total 6.00 Total 6.00 or 6.50 6.75 7.00 7.25 7.50 8.00 8.50 or 6.50 6.75 7.00 7.25 7.50 8.00 8.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................ 2,917 367 374 322 742 611,032 17 218,792 4213,4567,3504,312 5712,589 92 (2) Size of bank (total deposits in mil lions of dollars): Less than 10............................... 760 136 58 56 208 6 291 5 178 32 15 11 37 4 77 1 10-50....................................... 1,542 194 194 137 376 39 593 7 2 1,403 74 215 121 514 47 426 4 (2) 50-100...................................... 264 17 62 36 58 2 87 2 807 28 136 130 229 (2) 277 (2) 100-500.................................... 248 17 39 48 79 12 51 2 3,393 110 367 823 1,196 261 608 (2) 500 and over............................. 103 3 21 45 21 2 10 1 13,011 1762,7246,2642,335 (2) 1,201 (2) Federal Reserve district: Boston........................................ 149 9 22 29 42 2 45 956 10 184 493 202 (2) 66 New York.................................. 199 35 33 31 51 9 37 3 5,832 65 1,5772,553 734 98 776 28 Philadelphia............................... 75 21 12 10 19 13 565 18 105 396 16 29 Cleveland.................................... 116 18 21 23 21 1 32 798 177 132 378 84 (2) 27 Richmond................................... 156 22 43 12 24 55 665 28 203 41 257 136 Atlanta........................................ 392 18 58 40 110 8 157 1 845 18 108 175 252 12 225 (2) Chicago...................................... 468 93 47 40 105 11 170 2 2,218 47 139 783 981 94 174 (2) St. Louis..................................... 209 35 14 5 67 1 87 330 4 93 39 123 (2) 71 Minneapolis............................... 213 42 22 39 30 8 71 1 392 15 14 183 123 15 41 (2) Kansas City............................... 292 41 33 18 71 8 117 3 1 646 25 207 61 225 38 84 3 (2) Dallas.......................................... 461 27 44 24 165 5 190 5 1 2,234 10 317 663 602 8 630 3 (2) San Francisco........................... 187 6 25 51 37 8 58 2 3,313 3 3771,584 713 304 331 (2) 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 October 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Group Total Total 6.00 6.00 or 6.50 6.75 7.00 7.25 7.50 8.00 8.50 or 6.50 6.75 7.00 7.25 7.50 8.00 8.50 less less NUMBER OF BANKS MILLIONS OF DOLLARS All banks........................................ 3,048 641 403 224 538 32 1,198 9,266 7841,7742,3332,620 2091,509 Size of bank (total deposits in mil­ lions of dollars): Less than 10............................... 757 167 81 21 148 333 199 43 28 11 39 1 76 1 10-50........................................... 1,645 333 238 116 248 694 1,262 256 216 129 197 8 441 (2) 50-100......................................... 284 52 29 31 66 94 732 55 66 113 191 32 268 (2) 100-500....................................... 268 65 40 27 66 64 1,661 224 328 189 549 38 320 13 500 and over............................. 94 24 15 29 10 13 5,412 2071,136 1,892 1,645 129 403 Federal Reserve district: Boston........................................ 108 17 15 11 55 146 15 60 16 36 (2) 19 New York.................................. 182 55 38 35 24 2,624 148 899 1,393 109 11 64 Philadelphia............................... 146 35 22 20 57 424 120 113 66 28 (2) 96 Cleveland.................................... 170 60 25 27 44 325 89 71 37 57 (2) 55 (2) (2) Richmond.................................. 313 42 105 50 80 636 92 304 68 76 (2) 73 Atlanta........................................ 449 107 37 70 204 758 80 41 73 284 7 266 (2) (2)‘ Chicago....................................... 460 113 72 96 142 1,128 124 80 135 317 5 453 10 (2) S M t. i n L n o e u a i p s o .. l .. i . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 1 2 0 2 3 5 1 2 1 1 4 7 2 38 7 1 4 9 2 4 3 1 0 19 7 2 31 6 8 1 4 3 25 6 3 1 8 6 (2) 12 5 9 7 (2) Kansas City............................. 250 15 41 76 249 24 42 41 56 (2) 56 (2) Dallas.......................................... 414 37 101 225 491 25 27 22 234 13 168 (2) San Francisco........................... 124 6 22 55 2,059 9 39 451 1,369 116 74 (2) For notes to Appendix Tables 1-6, see p. 291. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

TIME AND SAVINGS DEPOSITS 295 APPENDIX TABLE 7— MINIMUM DENOMINATION ON WHICH MOST COMMON RATE WAS PAID BY MEMBER BANKS ON TIME DEPOSITS IN DENOMINATIONS OF LESS THAN $100,000 ON OCTOBER 31, 1970 Number of banks Minimum denomination (dollars) Most common rate All (per cent) denomina­ tions 100 101- 501- 1,001- 2,501- 5,001- 10,001- 25,001or less 500 1,000 2,500 5,000 10,000 25,000 100,000 MATURITY OF LESS THAN 1 YEAR All rates......................................... 5,145 1,524 1,859 1,551 79 101 23 6 2 4 00 or less.............................. 42 28 8 4 1 1 4 01-4 50 ............................. 87 42 24 17 1 2 1 4.51-5.00.................................. 5,016 1,454 1,827 1,530 78 98 21 6 2 MATURITIES OF 1 UP TO 2 YEARS All rates......... 5,259 1,170 1,649 2,130 110 183 4.00 or less 14 7 5 2 4.01-4.50.. 10 3 1 4 1 1 4.51-5.00.. 363 90 102 138 10 22 1 5.01-5.25.. 19 1 1 9 3 5 5.26-5.50.. 4,853 1,069 1,540 1,977 96 155 io‘ MATURITIES OF 2 YEARS OR MORE All rates........................................ 4,563 947 1,410 1,851 103 200 4.00 or less.............................. 5 4 1 4.01-4.50................................. 6 5 1 4.51-5.00................................. 86 38 14 28 1 3 5.01-5.25................................. 3 2 1 5.26-5.50................................. 55 7 3 38 4 2 5.51-5.75.................................. 4,408 893 1,390 1,784 ioi’ 192 39 Note.—Not all member banks reported this information, but those which did accounted for the bulk of deposits of these types. APPENDIX TABLE 8— MAXIMUM PERIOD FOR WHICH MEMBER BANKS WOULD GUARANTEE INTEREST RATES ON SMALL-DENOMINATION TIME DEPOSITS WITH MATURITIES OVER 2 YEARS ON OCTOBER 31, 1970 Most common rate paid (per cent) Most common rate paid (per cent) Item All All rates 4.50 or 4.51- 5.01- 5.26- 5.51- rates 4.50 or 4.51- 5.01- 5.26- 5.51less 5.00 5.25 5.50 5.75 less 5.00 5.25 5.50 5.75 NUMBER OF BANKS PERCENTAGE DISTRIBUTION WITHIN GROUP Total reporting information.. .. 4,581 87 4,424 Banks that would guarantee rate for more than 2 years.............. 486 38 436 100.0 100.0 100.0 100.0 100.0 100.0 Maximum guarantee period (months): 25-36........................................ 74 1 71 15.2 50.0 2.6 16.3 37-48........................................ 16 1 15 3.3 2.6 3.5 49-60........................................ 214 27 180 44.0 50.0 71.1 100.0 50.0 41.3 61-96........................................ 25 2 22 5.2 5.3 16.7 5.0 97-120...................................... 100 6 93 20.6 15.8 16.7 21.3 Over 120.................................. 57 1 55 11.7 2.6 16.7 12.6 Note.—Not all member banks reported this information, but those which did accounted for the bulk of deposits of this type. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APPENDIX TABLE 9— INSURED COMMERCIAL BANKS CHANGING THE MOST COMMON RATE PAID ON NEW TIME AND SAVINGS DEPOSITS, IPC, BETWEEN JULY 31 AND OCTOBER 31, 1970 Time deposits in denominations of— Less than $100,000 maturing in— $100,000 or more Savings Less than 1 year 1 up to 2 years 2 years and over Negotiable CD’s All other Group Size of bank Size of bank Size of bank Size of bank Size of bank Size of bank (total deposits (total deposits (total deposits (total deposits (total deposits (total deposits in millions in millions in millions in millions in millions in millions All of dollars) All of dollars) All of dollars) All of dollars) All of dollars) All of dollars) size size size size size size groups groups groups groups groups groups 100 100 100 100 100 100 Under and Under and Under and Under and Under and Under and 100 over 100 over 100 over 100 over 100 over 100 over Number of issuing banks October 31, 1970........... 12,726 12,218 508 11,933 11,427 506 12,103 11,610 493 10,456 9,974 482 3,066 2,721 345 3,031 2,677 354 PERCENTAGE DISTRIBUTION OF NUMBER OF BANKS IN GROUP * Total.............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 No change in rate, July 31-October 31, 1970 96.7 96.8 97.0 96.9 96.8 98.4 95.2 95.3 92.7 89.8 89.7 91.1 47.2 50.0 25.5 49.1 49.8 43.8 Banks raising rate............... 2.5 2.4 2.6 .7 .7 .6 2.0 1.9 2.6 1.3 i.2 2.7 11.4 11.7 9.0 11.8 12.0 10.2 New most common rate 2 (per cent) 3.50 or less.. 3.51-4.00... 4.01-4.50... 4.51-5.00... (!) .3 5.01-5.25... 0) .3 5.26-5.50... 0) O) 5.51-5.75... 5.76-6.00... .2 .1 .8 6.01-6.25... .1 .1 6.26-6.50... 2.9 3.1 i.*7 6.51-6.75... .2 0) 1.1 6.76-7.00... 2.2 2.3 2.0 7.01-7.50... 5.9 6.2 3.7 7.51-8.00... .1 0) .3 8.01-8.50... .1 .1 296 FEDERAL RESERVE BULLETIN □ APRIL 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Banks reducing rate 3____ .4 1.7 1.7 2.9 1.5 1.4 3.3 24.6 19.6 63.2 24.2 22.2 39.0 New most common rate 2 (per cent) 3.50 or less............ O) .3 O) .3 3.51-4.0 0 msm.m4 O) O) (l> 0) 4.01-4.5 0 O) O) O) .2 .1 .3 4.51-5.0 0 1.3 1.3 2.9 .5 .4 .1 .6 .4 2.0 5 5. . 2 0 6 1 - - 5 5 . . 5 2 5 0 .4 .4 O 1 ) .0 i!o .9 .3 . . 1 3 . . 3 1 '' ’ .6 5.51-5.7 5 .2 . 1 .9 .2 .2 .3 5.76-6.0 0 2.0 1.9 2.9 3.8 3.9 2.5 6.01-6.2 5 1.4 1.1 3.5 1.8 1.6 3.7 6.26-6.5 0 4.3 3.6 10.4 4.7 4.4 6.5 6.51-6.7 5 5.3 3.2 21.7 4.2 3.4 10.7 6.76-7.0 0 7.8 6.5 18.0 7.9 7.5 10.7 7.01-7.5 0 2.5 2.2 5.2 .4 .3 1.1 7.51-8.0 0 O) O) O) O) .3 8.01-8.5 0 Banks introducing new in­ strument ....................... 2.0 2.1 1.1 1.1 1.8 7.4 7.7 2.9 16.8 18.7 2.3 14.9 16.0 7.0 Most common rate 2 (per cent) 4.00 or less.................. .2 .2 4.01-4.5 0 .2 .2 O) O) .4 .4 .3 4.51-5.0 0 1.6 1.6 O) O) .4 1.6 3.0 3.2 1.4 5.01-5.2 5 O) .3 5.26-5.5 0 .2 .3 5.51-5.7 5 7.1 7.4 2A .7 . I .1 5.76-6.0 0 2.4 .8 .9 6.01-6.2 5 .5 1.2 1.3 .6 6.26-6.5 0 .4 2. 1 2.4 .3 6.51-6.7 5 1.6 .6 .5 1.4 6.76-7.0 0 4.8 1.7 1.8 .8 7.01-7.5 0 4.8 4.8 5.2 2.0 7.51-8.0 0 . 1 .1 8.01-8.5 0 * Shaded areas indicate that rates shown in the stub are higher 3 Includes a relatively few banks that discontinued issuance of October 31, 1970. Percentages may not add to totals because of than the maximum permissible rate on the various instruments. these deposits between July 31 and October 31, 1970. rounding. 1 Less than 0.05 per cent. Note.—This table was compiled by comparing rates as reported 2 For description of most common rate, see Note to Table 3, by the sample banks that had these types of deposits outstanding p. 289. on July 31, 1970, with the rates reported by the same banks on N) VO VI Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Changes in Bank Lending Practices, 1970 Since late 1964, the Federal Reserve System posits in early spring—particularly con­ has conducted quarterly surveys to obtain sumer-type accounts—and the fall of short­ information from large commercial banks term rates of interest to near or below the concerning changes in their nonprice lending prime rate, banks lowered the rate charged policies and practices and their appraisal of prime commercial customers by Vi of a current and anticipated demand for business percentage point. In addition, they began to loans. The results of these surveys are pub­ screen loan requests by established, local lished annually in the spring. Summary sta­ customers less stringently. Although banks tistics covering the four surveys in 1970 are emphasized the rebuilding of depleted li­ included in this article. quidity positions and the reduction of high- While monetary policy eased early in cost borrowings, the marked change in 1970, loan demand continued fairly strong financial conditions was also reflected in a and participants in the February 15, 1970, small shift toward increased willingness of survey were still under pressure from the banks to extend consumer instalment and effects of restrictive policies that had been single-family mortgage loans. pursued throughout 1969. Bank liquidity Late in June, financial markets came un­ positions were quite low, and banks were der severe pressures in the wake of bank­ still relying heavily on funds from nonde­ ruptcy proceedings by a major railroad. The posit sources—such as funds obtained from Board of Governors of the Federal Reserve sales of bank-related commercial paper and System, among other actions, suspended the Euro-dollar borrowings from foreign ceiling rates on large negotiable certificates branches. In this environment, virtually no of deposit (CD’s) with maturities of 30 to participant reported any easing in lending 89 days. Thus, banks were enabled to obtain terms and conditions. More than a third funds in the market and could accommodate raised interest rates further and reinforced creditworthy borrowers who were unable to compensating balance requirements. Other replace maturing commercial paper—the measures of bank lending conditions re­ market most affected by investor reactions mained at the restrictive levels recorded in to the bankruptcy. Banks attracted a sub­ late 1969. stantial volume of short-term CD’s and, at Banks began to alter their policies after the same time, extended loans to finance the February survey, however, when interest companies and to other borrowers adversely rates on short-term market instruments de­ affected by the unsettled nature of the paper clined and deposit inflows accelerated. market. Following the raising of ceiling rates on time Participants in the August 15 survey in­ and savings deposits in late January, banks dicated that loan demand had picked up quickly took advantage of the opportunity during the preceding 3 months. However, to increase the interest rate attractiveness the temporary surge in loan demands around of their claims. With the influx of time de­ midyear no doubt masked the underlying 298 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

weakness in economic activity and associ­ Despite reductions in the prime rate in ated credit demands. Sizable minorities of September and early November totaling % banks reported that they had firmed their of a percentage point, three-fifths of the re­ policies since the preceding survey in several spondents in the November 15 survey had areas, particularly with respect to interest experienced a weakening in loan demand— rates, compensating balances, and standards as the level of business activity slackened, of creditworthiness. Several banks also be­ in part reflecting the automobile strike—and came more reluctant to make loans to brok­ a continued shift by businesses of a large por­ ers or term loans to businesses. On the other tion of their financing needs to the capital hand, the trend toward increased willingness markets. At the same time, availability of to make mortgage loans, which had ap­ funds increased further. Consumer-type time peared in the previous survey, continued. and savings deposits expanded at a rapid QUARTERLY SURVEY— FEBRUARY 1970 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON FEBRUARY 15, 1970, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 125 (100.0) (1.6) 12 (9.6) 95 (76.0) 15 (12.0) (.8) Anticipated in next 3 months..................... 125 (100.0) 14 (11.2) 87 (69.6) 23 (18.4) (.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 125 (100.0) (6.4) 36 (28.8) 80 (64.0) (.8) Compensating or supporting balances. 125 (100.0) (6.4) 40 (32.0) 77 (61.6) Standards of creditworthiness............... 125 (100.0) (5.6) 21 (16.8) 97 (77.6) Maturity of term loans........................... 125 (100.0) (4.8) 16 (12.8) 103 (82.4) Practice concerning review of credit lines or loan applications: Established customers.............................. 125 (100.0) 1 (.8) 23 (18.4) 100 (80.0) (.8) New customers.......................................... 125 (100.0) 19 (15.2) 26 (20.8) 78 (62.4) (1.6) Local service area customers................. 125 (100.0) 19 (15.2) 105 (84.0) (.8) Nonlocal service area customers........... 124 (100.0) 20 (16.1) 19 (15.3) 85 (68.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business........................................... 124 (100.0) 13 (10.5) 24 (19.4) 87 (70.1) Intended use of the loan......................... 125 (100.0) 12 (9.6) 15 (12.0) 98 (78.4) Loans to independent finance companies:3 Terms and conditions: Interest rate charged................................ 124 (100.0) (3.2) 15 (12.1) 104 (83.9) (.8) Compensating or supporting balances. 124 (100.0) (4.8) 21 (16.9) 97 (78.3) Enforcement of balance requirements . 124 (100.0) (6.5) 30 (24.2) 86 (69.3) Establishing new or larger credit lines. 124 (100.0) 20 (16.1) 20 (16.1) 84 (67.8) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 125 (100.0) (6.4) 19 (15.2) 98 (78.4) Consumer instalment loans........................ 124 (100.0) (2.4) 20 (16.1) 100 (80.7) (.8) Single-family mortgage loans..................... 122 (100.0) (6.6) 17 (13.9) 96 (78.7) (.8) Multifamily mortgage loans....................... 119 (100.0) 11 (9.2) 15 (12.6) 93 (78.2) All other mortgage loans............................ 122 (100.0) 14 (11.5) 15 (12.3) 91 (74.6) (1.6) Participation loans with correspondent banks........................................................... 123 (100.0) (3.3) 10 (8.1) 108 (87.8) (.8) Loans to brokers........................................... 122 (100.0) (6.6) 17 (13.9) 97 (79.5) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. 299 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN □ APRIL 1971 pace in view of the interest rate attractive­ bonds were the more heavily favored, al­ ness of these deposits as well as in reflection though longer-term securities gained increas­ of the relatively high savings rate and general ing popularity in view of the yield advantage consumer uncertainty about the economic on these issues. The imposition of reserve outlook. Sales of CD’s also were large, al­ requirements in late September on commer­ though less than the volume immediately cial paper issued by bank affiliates precipi­ following the suspension of short-term CD tated large declines in such borrowings. ceiling rates. Banks also reduced their high-cost borrow­ While rates on market instruments con­ ings from foreign branches. tinued to decline, many banks invested some This ready supply of lendable funds, of their excess funds in the securities market. which led to sharply improved liquidity posi­ Short- and intermediate-term State and local tions at most banks, encouraged an appreci- QUARTERLY SURVEY— MAY 1970 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON MAY 15, 1970, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 124 (100.0) 3 (2.4) 26 (21.0) 81 (65.3) 13 (10.5) (.8) Anticipated in next 3 months....................... 125 (100.0) 25 (20.0) 89 (71.2) 11 (8.8) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged.............................. 125 (100.0) (1.6) 14 (11.2) 77 (61.6) 32 (25.6) Compensating or supporting balances. 125 (100.0) (2.4) 22 (17.6) 98 (78.4) 2 (1.6) Standards of creditworthiness............... 125 (100.0) (4.0) 21 (16.8) 99 (79.2) Maturity of term loans........................... 125 (100.0) (3.2) 11 (8.8) 108 (86.4) 2 (1.6) Practice concerning review of credit lines or loan applications: Established customers............................ 125 (100.0) (1.6) 10 (8.0) 108 (86.4) 5 (4.0) New customers.......................................... 125 (100.0) (6.4) 23 (18.4) 85 (68.0) 9 (7.2) Local service area customers................. 125 (100.0) (1.6) 11 (8.8) 106 (84.8) 6 (4.8) Nonlocal service area customers........... 124 (100.0) (7.3) 21 (16.9) 92 (74.2) 2 (1.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.......................................... 124 (100.0) (3.2) 21 (16.9) 97 (78.3) 2 (1.6) Intended use of the loan......................... 125 (100.0) (4.0) 10 (8.0) 110 (88.0) Loans to independent finance companies:3 Terms and conditions: Interest rate charged................................ 125 (100.0) 2 (1.6) 3 (2.4) 95 (76.0) 25 (20.0) Compensating or supporting balances. 125 (100.0) 3 (2.4) 5 (4.0) 117 (93.6) Enforcement of balance requirements . 125 (100.0) 4 (3.2) 16 (12.8) 105 (84.0) Establishing new or larger credit lines. 125 (100.0) 11 (8.8) 17 (13.6) 96 (76.8) (.8) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 125 (100.0) (3.2) 15 (12.0) 103 (82.4) 3 (2.4) Consumer instalment loans........................ 124 (100.0) 7 (5.6) 105 (84.7) 11 (8.9) (.8) Single-family mortgage loans..................... 122 (100.0) (4.1) 5 (4.1) 92 (75.4) 18 (14.8) (1.6) Multifamily mortgage loans....................... 119 (100.0) (3.4) 8 (6.7) 99 (83.2) 6 (5.0) (1.7) All other mortgage loans............................ 122 (100.0) (2.5) 13 (10.7) 102 (83.5) 4 (3.3) Participation loans with correspondent banks........................................................... 124 (100.0) (1.6) 7 (5.6) 113 (91.2) (1.6) Loans to brokers.......................................... 123 (100.0) (4.9) 19 (15.4) 98 (79.7) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

CHANGES IN BANK LENDING PRACTICES, 1970 301 able relaxation of lending terms. Besides including for the first time mortgages on further reductions in the prime rate, the re­ multifamily and nonresidential properties. spondents in the November survey reported However, in light of concern over the quality significant easing in terms and conditions to of credit, banks maintained or strengthened both new and nonlocal customers. Marked their standards of creditworthiness, and they changes also were indicated in the willing­ apparently made little change in their poli­ ness to make term loans to businesses, con­ cies with respect to compensating bal­ sumer instalment loans, and mortgage loans, ances. □ QUARTERLY SURVEY— AUGUST 1970 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON AUGUST 15, 1970, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Total stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier................. 125 (100.0) (1.6) 28 (22.4) 85 (68.0) 10 (8.0) Anticipated in next 3 months....................... 125 (100.0) 29 (23.2) 84 (67.2) 12 (9.6) Much firmer Moderately Essentially Moderately Much Total policy firmer policy unchanged easier policy easier policy Loans to nonfinancial businesses: Terms and conditions: Interest rates charged................................ 125 (100.0) 22 (17.6) 100 (80.0) (2.4) Compensating or supporting balances. , 125 (100.0) 1 (.8) 31 (24.8) 92 (73.6) (.8) Standards of creditworthiness............... 125 (100.0) 2 (1.6) 26 (20.8) 97 (77.6) Maturity of term loans............................. 125 (100.0) 2 (1.6) 17 (13.6) 105 (84.0) (.8) Practice concerning review of credit lines or loan applications: Established customers............................... 125 (100.0) 6 (4.8) 115 (92.0) 4 (3.2) New customers............................................ 124 (100.0) (4.0) 15 (12.1) 92 (74.2) 11 (8.9) (.8) Local service area customers................... 125 (100.0) 5 (4.0) 111 (88.8) 9 (7.2) Nonlocal service area customers............. 124 (100.0) 6 (4.8) 16 (12.9) 100 (80.7) 2 (1.6) Factors relating to applicant:2 Value as depositor or source of collat­ eral business.............................. 124 (100.0) 2 (1.6) 21 (16.9) 101 (81.5) Intended use of the loan............. 125 (100.0) 13 (10.4) 111 (88.8) (.8) Loans to independent finance companies Terms and conditions: Interest rate charged.......................... 124 (100.0) 2 (1.6) 10 (8.1) 112 (90.3) Compensating or supporting balances. 124 (100.0) 1 (.8) 14 (11.3) 109 (87.9) Enforcement of balance requirements . 124 (100.0) 5 (4.0) 24 (19.4) 95 (76.6) Establishing new or larger credit lines. 124 (100.0) 16 (12.9) 14 (11.3) 92 (74.2) (1.6) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more willing more willing Willingness to make other types of loans: Term loans to businesses............................ 125 (100.0) (1.6) 15 (12.0) 102 (81.6) (4.8) Consumer instalment loans........................ 124 (100.0) 8 (6.5) 108 (87.0) (6.5) Single-family mortgage loans..................... 121 (100.0) (.8) 5 (4.1) 95 (78.6) 20 (16.5) Multifamily mortgage loans....................... 121 (100.0) (2.5) 7 (5.8) 101 (83.4) 10 (8.3) All other mortgage loans............................ 122 (100.0) (2.5) 9 (7.4) 104 (85.2) 6 (4.9) Participation loans with correspondent banks........................................................... 124 (100.0) 1 (.8) 119 (96.0) 4 (3.2) Loans to brokers.......................................... 123 (100.0) (.8) 13 (10.6) 108 (87.8) 1 (.8) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

QUARTERLY SURVEY— NOVEMBER 1970 CHANGES IN BANK LENDING PRACTICES AT SELECTED LARGE BANKS: POLICY ON NOVEMBER 15, 1970, COMPARED WITH POLICY 3 MONTHS EARLIER Number of banks; figures in parentheses indicate percentage distribution of total banks reporting Much Moderately Essentially Moderately Much Item stronger stronger unchanged weaker weaker Strength of demand for commercial and in­ dustrial loans:1 Compared with 3 months earlier............... 125 (100.0) 4 (3.2) 46 (36.8) 72 (57.6) (2.4) Anticipated in next 3 months...................... 125 (100.0) 15 (12.0) 55 (44.0) 54 (43.2) (.8) Much firmer Moderately Essentially Moderately Much Total policy firmer unchanged easier easier Loans to nonfinancial businesses: Terms and conditions: Interest rates charged................................ 125 (100.0) 1 (.8) 31 (24.8) 87 (69.6) (4.8) Compensating or supporting balances. 125 (100.0) 4 (3.2) 116 (92.8) 5 (4.0) Standards of creditworthiness................ 125 (100.0) 11 (8.8) 109 (87.2) 5 (4.0) Maturity of term loans............................. 125 (100.0) (.8) 4 (3.2) 106 (84.8) 14 (11.2) Practice concerning review of credit lines or loan applications: Established customers............................... 125 (100.0) (1.6) 81 (64.8) 40 (32.0) (1.6) New customers............................................. 125 (100.0) (6.4) 58 (46.4) 51 (40.8) (6.4) Local service area customers.................. 125 (100.0) (.8) 81 (64.8) 39 (31.2) (3.2) Nonlocal service area customers........... 125 (100.0) (4.8) 92 (73.6) 25 (20.0) (1.5) Factors relating to applicant:2 Value as depositor or source of collat­ eral business............................................. 124 (100.0) 2 (1.6) (4.0) 110 (88.8) 7 (5.6) Intended use of the loan........................... 125 (100.0) 1 (.8) (2.4) 105 (84.0) 16 (12.8) Loans to independent finance companies:3 Terms and conditions: Interest rate charged.................................. 125 (100.0) (3.2) 65 (52.0) 51 (40.8) (4.0) Compensating or supporting balances. 125 (100.0) (.8) (2.4) 119 (95.2) 2 (1.6) Enforcement of balance requirements. 125 (100.0) (.8) (5.6; 117 (93.6; Establishing new or larger credit lines. 125 (100.0) (2.4) (4.0) 96 (76.8) 21 (16.8) Considerably Moderately Essentially Moderately Considerably Total less willing less willing unchanged more wiling more willing Willingness to make other types of loans: Term loans to businesses............................... 125 (100.0) (1.6) 85 (68.0) 38 (30.4) Consumer instalment loans......................... 124 (100.0) (1.6) 90 (72.6) 28 (22.6) (3.2) Single-family mortgage loans...................... 121 (100.0) (.8) 88 (72.8) 31 (25.6) (.8) Muitifamily mortgage loans......................... 121 (100.0) (.8) 104 (86.0) 16 (13.2) All other mortgage loans. ........................... 123 (100.0) (.8) 102 (83.0) 19 (15.4) (.8) Participation loans with correspondent banks............................................................... 125 (100.0) (1.6) (1.6) 105 (84.0) 16 (12.8) Loans to brokers............................................. 124 (100.0) (.8) (4.8) 109 (87.9) (6.5) 1 After allowance for bank’s usual seasonal variation. 3 “Independent,” or “noncaptive,” finance companies are finance 2 For these factors, firmer means the factors were considered to be companies other than those organized by a parent company mainly more important in making decisions for approving credit requests, for the purpose of financing dealer inventory and carrying instalment and easier means they were considered to be less important. loans generated through the sale of the parent company’s products. 302 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Arthur F. Burns, Chairman, This authority lapsed on March 22, but Board of Governors of the Federal Reserve apparently will soon be extended until System, before the Subcommittee on Finan­ June 1. This temporary reversion to the precial Institutions of the Committee on Bank­ 1966 law has created no real problems in ing, Housing and Urban Affairs, U.S. Senate, view of current market conditions. At other March 31, 1971. times, however, return to the pre-1966 law could force retention of ceilings when they I appreciate this opportunity to present the are no longer needed, or require imposition views of the Board of Governors of the Fed­ of ceilings without regard to size of deposit. eral Reserve System on S. 1201. The authority to differentiate between largedenomination money-market CD’s and Section 1 of the bill would extend for a smaller consumer-type deposits may be 2-year period the authority granted in 1966 needed again if we are to avoid undesirable for flexible, coordinated regulation of rates shifts of funds out of thrift institutions or dis­ payable on time and savings deposits. For a ruption in financial markets generally. The number of years the Board has recom­ Board therefore continues to believe that mended that this authority be made perma­ the 1966 law should be made permanent. nent. This recommendation does not, of course, mean that rate ceilings should always Section 2 of the bill would remove the be in force. On the contrary, we hope that time limitation on the authority of the Presi­ changes in the structure of our financial in­ dent to establish voluntary programs, includ­ stitutions and in economic and financial con­ ing programs for restraining credit, under ditions will, in time, warrant a suspension of the Defense Production Act. The authority such ceilings so that depositary institutions to establish voluntary credit restraint pro­ can compete more freely for the savings of grams under that Act was terminated by the the public. Recognizing that ceilings are not Congress in 1952, but was restored 2 years always useful, Congress in 1966 authorized ago in Public Law 91-151. The Board the regulatory agencies to suspend them recommended against restoration of this when it is appropriate to do so. authority in 1969, on the ground that it was not needed. However, Congress decided that In addition to authorizing suspension of this authority, along with authority for ceilings, the 1966 amendments widened the mandatory credit controls, should be on the grounds for differentiating between kinds of statute books in case of need, so that the deposits in establishing ceilings. Both of President “would be afforded the broadest these features of the 1966 law proved to be of great value last summer, when ceilings on possible spectrum of alternatives in fighting large-denomination certificates of deposit inflation.” Since the 1969 legislation pro­ with short maturities were suspended, vided permanent authority or mandatory thereby helping to relieve tensions in the credit controls, we see no reason for treat­ commercial paper market that arose in the ing the authority for voluntary programs wake of the Penn Central bankruptcy. differently. 303 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN □ APRIL 1971 Section 3 of the bill would extend the standby authority at intervals as short as 6 authority granted to the President in the months. By restoring the standby authority Economic Stabilization Act of 1970 to im­ for a longer period, as the House bill does, pose mandatory controls over prices, rents, but providing that it shall expire in 6 months wages, and salaries. The Board believes that in case it is exercised, congressional review measures besides general monetary and fiscal will be assured when it is most timely. policies are needed under present conditions Let us turn now to Section 5 of the bill, to deal with the twin problems of inflation passing over Section 4 for a moment. Sec­ and unemployment. As I suggested earlier tion 5 would amend the standby authority this month in testifying before the full com­ for selective credit controls granted by the mittee, a multifaceted incomes policy is Credit Control Act of 1969. The 1969 called for to improve the functioning of our legislation provides that the President may labor and product markets—a policy that authorize the Board to control “any and all the Board believes should include a Wage- extensions of credit” whenever he determines Price Review Board. Such a board, with that such action is necessary to prevent or power to mobilize public opinion in support control “inflation generated by an excessive of voluntary efforts to curb inflationary wage volume of credit.” S. 1201 would authorize and price actions, would be more in har­ imposition of such controls if either the mony with our traditions than would manda­ President or the Board made the required tory controls, which should be used only as determination of need. The Board hopes, a last resort. as I am sure the members of the committee If the Congress believes, nevertheless, that hope, that it will never be necessary to use the President should have standby powers to this authority. And if, contrary to our ex­ freeze wages and prices, provision should be pectations, conditions should arise calling made for prompt congressional review of for such action, we would hope and expect any freeze order. The Board endorses the that the Board and the President would approach taken by the House in H.R. 4246, agree that it was in fact needed. Thus we which assures such a review by providing see no necessity at present for authorizing that if the authority to impose mandatory the Board to act without a Presidential controls is exercised it shall expire shortly finding. thereafter. Congress could, of course, extend Finally, Section 4 of S. 1201 would au­ the authority if upon review it determined thorize the Board to require banks that are that such action was necessary. The Board members of the Federal Reserve System to recommends that you adopt this House pro­ maintain supplemental reserves against as­ vision. We are inclined to believe that such a sets, in addition to the reserves they must procedure would offer more positive con­ now maintain against depositary liabilities. gressional control over this very broad grant The purpose of the supplemental reserve of power than would reliance solely on a requirements would be to facilitate flows of termination date fixed without reference to credit into specified channels and restrain whether the authority is exercised. While flows into sectors where, in the Board’s S. 1201 would restore the general authority judgment, such restraint would “help stabil­ for a relatively short period (until Septem­ ize the national economy.” The Board ber 30 of this year), Congress presumably unanimously recommends against enactment would not wish to review the grant of of this section of the bill at the present time. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 305 All of us agree, I am sure, on the need to protecting the integrity of the Nation’s explore ways to avoid unwanted selective money. Once supplementary reserve re­ effects of general monetary restraint. But quirements came into use, shifts in the level use of reserve requirements for this purpose of required reserves would result from every poses problems for which we do not yet shift in the lending policies of commercial have answers. Much further study is needed. banks. As required reserves rose or fell, One problem arises from the fact that funds for expansion of bank credit would the requirements would apply only to mem­ be absorbed or released. These movements ber banks. A set of requirements designed would introduce an additional element of to induce member banks to make more uncertainty into the task of achieving, loans in specified areas, and less in others, through open market operations, a desired would increase the burden of maintaining rate of growth in the money supply or in membership in the Federal Reserve System, bank credit. and thus increase the competitive advantage Even if these operational difficulties could of nonmember banks. This would be par­ be overcome, there would still be funda­ ticularly true if the order of priorities or the mental objections to this section of the bill. extent of incentives and penalties were sub­ I trust you will consider most carefully the ject to frequent changes. The System is al­ implications of granting the central bank ready experiencing attrition of membership the vast discretionary authority contained which, as it continues, progressively lessens in this bill to determine social priorities in the effectiveness of changes in reserve re­ the use of credit. The Federal Reserve quirements as an instrument of monetary System has the critically important assign­ policy. ment of providing for aggregate supplies of The main reason member banks are leav­ money and credit needed to promote healthy ing the System now is that they believe economic growth with reasonable price reserve requirements are too costly. If stability. Congress has granted the System attrition were increased by adoption of a considerable measure of independence, to supplementary reserve requirements, the ensure that it will be insulated from shorteffectiveness of such requirements in influ­ run political pressures in performing this encing credit flows would be reduced. For function. We believe there is great value that reason as well as for reasons of equity, to our society in this arrangement, and that supplementary reserve requirements on as­ its continuance depends on confining the sets, if contemplated at all, should apply discretion of the central bank, in the main, to all insured commercial banks. Further­ to matters of general monetary policy. more, consideration would need to be given S. 1201 authorizes the Board to establish to imposing such requirements on other supplementary reserve requirements to facili­ credit-granting institutions as well. tate flows of credit into housing, small busi­ Another shortcoming of supplementary nesses, exports, municipal finance, farms reserve requirements is that they would with sales of less than $100,000 a year, and complicate the already intricate task of development of areas of low income or high the Federal Reserve System in discharging unemployment. Increasing credit flows for the main responsibility assigned to it by the these purposes implies reducing them for Congress—namely, to conduct monetary others—relatively, if not absolutely. The policy so as to promote prosperity while implications of such a wide-ranging substi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN □ APRIL 1971 tution of public for private decisions need Small Business Administration; the Nation’s to be considered with utmost care. farmers are assisted by the Farmers Home Our free credit markets have served our Administration and the several lending Nation well over the years by channeling agencies of the cooperative farm credit financial resources to productive and socially system. These agencies have performed a beneficial uses. The Board recognizes, nev­ vital service in improving the functioning of ertheless, that market mechanisms are im­ financial markets. If the Congress should perfect and that the effects of monetary ease conclude that the sectors singled out for or restraint do not affect all sectors of the special attention in S. 1201 deserve more economy uniformly. There is ample jus­ ready access to sources of credit, certainly tification, therefore, for serious efforts to the most direct and probably also the best improve the functioning of our financial means of accomplishing this objective would markets—particularly, to cushion the effects be to expand the scope of operations of ex­ of monetary restraint on sectors such as isting Federal credit agencies in these fields, housing. and to create new entities where they seem Such efforts have been made on an exten­ needed. sive scale in our country, and they have However, if after due deliberation the typically* taken the form of supplementing Congress were to decide that supplementary the market mechanism rather; |jian subject­ reserve requirements on assets of banks are ing the decision-making process of private to play some role in redistributing fund flows financial institutions to detailed and shifting in financial markets, we would strongly urge governmental rules. Federally sponsored that the order and degree of priorities should credit agencies that borrow funds in the be determined by the Congress and embod­ money and capital markets and channel ied in legislation. Broad discretionary au­ them to sectors of high social priority have thority of this kind should not be lodged in played a particularly constructive role in this the Federal Reserve, which is not the ap­ regard. So also have government loan guar­ propriate body to make fundamental deci­ antees to encourage private investment in sions regarding social priorities. risk enterprises or in low- and middle- It may be useful to note that the trend income housing. over the past 10 years or more in central For most of the specific sectors singled banks of other industrial countries has been out for special attention in S. 1201, special away from practices that discriminate in credit facilities already exist. The Nation’s favor of particular sectors and toward policy homebuilding industry, for example, is pro­ instruments that have broad application and vided special assistance, particularly in peri­ generalized effects. ods of monetary restraint, by the Federal home loan banks, Federal National Mort­ Let me say, in conclusion, that while gage Association, Government National grave doubts surround the specific provisions Mortgage Association, and through a variety of Section 4 of the bill, the Board recognizes of programs operated by the Department of the need to continue to explore means by Housing and Urban Development; small which undesirable selective effects of gen­ firms are aided in securing credit by the eral monetary policies can be prevented. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 307 Statement by Andrew F. Brimmer, Member, types of credit flows which should be facili­ tated. With less detail, the broad objectives Board of Governors of the Federal Reserve of the proposed legislation could still be System, before the Subcommittee on Finan­ achieved. cial Institutions of the Committee on Bank­ ing, Housing and Urban Affairs, U.S. Senate, April 7,1971. Before proceeding with the rest of this testimony, let me express my appreciation to the chairman of this subcommittee for taking note of the fact, when he introduced I am delighted to respond to the invitation to this bill, that I suggested on April 1, 1970, present my views on S. 1201. I will restrict variable reserve requirements on bank assets my comments to Section 4 of the bill, which should be explored. I am flattered that only would give to the Board of Governors of the a year later the idea is being given a hearing Federal Reserve System authority to estab­ before this committee of Congress. lish supplemental reserve requirements In the rest of this statement, I will try to against assets for Federal Reserve member accomplish the following tasks: banks—in addition to the reserves they are now required to keep against deposit liabil­ ities. —Provide information on the changing sources and uses of funds raised in capital markets in I welcome this hearing as an important recent years, partly in response to the chang­ step in the evolution of reserve requirements ing posture of monetary policy. as a tool of monetary policy. Supplemental —Show that a significant part of the sharp reserve requirements on assets could prove changes in the availability of commercial highly beneficial in avoiding unwanted and bank credit in recent years can be traced to the behavior of roughly 20 multinational disproportionate effects of monetary re­ banks (which are an integral part of the straint in particular sectors of the economy. Euro-dollar market) and about 60 larger These hearings focus public attention on banks which are dominant in their regions. the proposal and serve to stimulate examina­ —Demonstrate the strong tendency for com­ tion and refinements. Hopefully, the result mercial banks to prefer loans to business will be its adoption in some form in the firms over loans to other sectors of the economy—with the preference for business near future. However, I think the preferable loans rising progressively as the size of banks course of action is not to adopt Section 4 increases. at this juncture. I can see a number of ques­ —Show that medium-sized national banks tions which should be resolved before the make relatively greater use of their legal real proposal is put into effect. I also have estate lending limit, compared to both the several specific reservations about some smallest and largest institutions. —Show that insured nonmember banks are aspects of the present draft: accounting for an increasing share of the fluc­ tuations in bank credit and the money sup­ —In its present form, the bill would apply only ply—and consequently are further compli­ to Federal Reserve member banks. I believe cating the task of monetary management. all insured commercial banks should be cov­ —Show that the Federal Reserve has already ered. made considerable use of differential require­ —The bill is overly specific with respect to the ments to soften the effects of policy measures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL RESERVE BULLETIN □ APRIL 1971 or to encourage banks to modify their bor­ 1 1 showing the amount and sources of funds rowing and lending behavior to conform raised in capital markets, by major economic more to the objectives of monetary policy. sectors, in 1968, 1969, and 1970. Several -Show that variable reserve requirements on highlights should be mentioned. The first bank assets need not place the Federal Re­ serve in the midst of private decision making thing to note is that a decline in the bor­ and can encourage market forces to dampen rowing activity of the Federal Government undesirable effects of monetary restraint. was the cause of the reduction in total credit flows in 1969. In both 1968 and 1970 I believe that this analysis demonstrates net Federal borrowing accounted for about the need to broaden the instruments of one-seventh of total funds raised by non­ public policy available to cushion the im­ financial sectors, and a small net repayment pact of monetary restraint on particular sec­ occurred in 1969. tors of the economy. Supplemental reserve For all other nonfinancial sectors, the requirements on assets may well provide an volume of funds in 1969 expanded substan­ answer to this problem if they are extended tially from the level in the previous year, (along with the privilege of borrowing from despite conditions of severe monetary re­ the Federal Reserve Banks) to insured non­ straint. Among principal borrowers, busi­ member banks as well as members. ness firms (particularly corporate borrow­ ers) recorded the most striking gains in both MONETARY POLICY AND CREDIT FLOWS absolute and relative terms. Their heavy IN RECENT YEARS borrowing was undertaken partly to finance The differential impact of monetary policy a sizable expansion in current output and on particular types of credit flows can be partly to finance a strong investment boom. seen clearly in the record for the last few In contrast, in 1969 the volume of funds years. It will be recalled that, as a byproduct raised by State and local governments of the policy of severe monetary restraint shrank somewhat, and net borrowing by followed in 1969, a striking change occurred households rose slightly. In 1970 total funds in the pattern of credit flows compared with obtained by nonfinancial sectors (other than that for the previous year. In 1970, to a the Federal Government) declined to considerable extent, such credit flows re­ roughly the same level registered in 1968. turned to more traditional channels. Of But among these sectors, only State and course, the policy of monetary restraint in local governments and agricultural busi­ 1969 itself was an integral part of the na­ nesses increased the volume of funds raised. tional campaign to check inflation. In the The gain for State and local units was es­ same vein, the policy of moderate easing in pecially marked; in fact, last year they credit conditions was part of our national registered considerable progress toward effort to cushion the slowdown in the econ­ making up the shortfall in borrowing which omy and thereby prevent a large decline in occurred during the period of credit strin­ production and an unacceptable rise in un­ gency in 1969. The largest drop in the amount of funds raised last year occurred employment. Thus, in both 1969 and 1970 among households. A substantial part of the pattern of credit flows was a byproduct of concerted efforts to attain the Nation’s 1 Copies of tables and charts referred to herein are economic objectives. available upon request to Publications Services, Divi­ To provide perspective on these changing sion of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. credit flows, statistics are presented in Table 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 309 the reduced borrowing by households in can be seen in the behavior of commercial 1970 centered in home mortgages and con­ banks. The figures in Table 2 can be used sumer credit—both of which in turn re­ for this purpose. In 1969 commercial banks’ flected the lower rate of spending on home liabilities (the key to their lending ability) construction and consumer durable goods. rose by only two-fifths as much as in the Finally, with the moderation of economic preceding year. As already mentioned, the activity in 1970—particularly with the pass­ primary reason was a noticeable loss of time ing of the investment boom which had been deposits—especially negotiable certificates so evident in 1969—net corporate borrow­ of deposits (CD’s) in denominations of ing declined slightly. It will be recalled that $100,000 and over. The latter experience, the strength of business expenditures for in turn, was due to the decision of supervi­ plant and equipment in 1969 and the rapid sory authorities to hold the maximum rates expansion of commercial bank loans to busi­ of interest which could be paid on time ness to help finance such outlays were of deposits below sharply rising market yields. major concern to the Federal Reserve in that In 1970 (and particularly after midyear year. when the ceilings were suspended with re­ The significant changes in the sources of spect to CD’s with maturities of less than 90 funds supplied to capital markets in the last days) interest rates offered by the banks few years can also be traced in Table 1. were again competitive with market yields In 1969 there was a sharp swing away from —which were declining sharply—and the financial institutions and toward households banks gained funds. and nonfinancial businesses as sources of The figures in Table 2 also show the funds. The reverse was true last year, and sharp changes in uses of commercial bank the more traditional pattern in the supply of funds in recent years. In 1969 total bank funds was substantially restored. The great­ credit expanded by less than half the amount est fluctuations occurred at commercial recorded the previous year. However, the banks, but changes at other financial institu­ rise in bank loans in 1969 was about as tions (especially at savings and loan asso­ large as that recorded the year before. To ciations) were also noticeable. In 1969 meet this private demand for credit, the commercial banks, which bore the brunt of banks liquidated a sizable amount of U.S. monetary restraint, lost a sizable amount of Government securities and switched the time deposits, and their lending ability was funds into loans. In 1970 the growth in bank severely restrained. Last year, reflecting the credit was nearly double that recorded in greater availability of bank reserves, the the preceding year. But the overwhelming relative role of commercial banks in supply­ proportion of the banks’ funds went into ing funds returned to what it had been in investments, and only a modest growth oc­ 1968. Also in 1970 the relative position of curred in bank loans. Finally, in 1969 savings and loan associations was substan­ commercial banks pulled in a record amount tially restored—a reflection of the greatly of Euro-dollars through their foreign enhanced flow of savings to them (as well branches in an effort to offset the loss of as to mutual savings banks and other finan­ domestic time deposits. Last year they em­ cial intermediaries). ployed a substantial portion of their en­ Of course, the most graphic picture of the larged resources to repay liabilities to their impact of monetary policy on credit flows foreign branches. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN □ APRIL 1971 BANKING STRUCTURE AND THE Yet, similar relative changes were recorded BEHAVIOR OF BANK CREDIT FLOWS in earning asset holdings, both unadjusted About a year ago, I devised a framework of and adjusted for loan sales, at all groups of analysis which allows one to study the lend­ banks. This similarity in total asset per­ ing behavior of commercial banks according formance in the face of markedly different to the character of their business.2 The deposit flows reflected greater flexibility framework was constructed by recasting data among the largest banks in developing al­ for selected groups of large banks which ternative sources of lendable funds. The report to the Federal Reserve on a weekly two larger groups of banks relied much basis. more heavily on domestic nondeposit Given the purpose of these hearings, it sources and siphoned substantially larger might be helpful to summarize here develop­ volumes of funds from the Euro-dollar ments at these groups of banks during the market. The multinational banks were par­ last few years. The results of the regrouping ticularly heavy borrowers in the Euro-dollar are shown in Tables 3 and 4. In this schema, market. The affiliates of multinational and I identified 20 banks as “Multinational major regional banks also sold a considera­ banks” and another 60 banks as “Major bly larger volume of commercial paper— regional banks.” Those banks classed as and in turn purchased larger quantities of multinational banks were picked on the loans—than did the large local banks. basis of their size, volume of business loans, General changes in the composition of importance in the Federal funds market in asset portfolios were somewhat more simi­ particular and the money market in gen­ lar at these three groups of banks. How­ eral, the volume of their foreign lending, ever, data in Table 3 do indicate that the and the extent of their participation in the multinational banks made relatively larger Euro-dollar market. Similar criteria were reductions in their security holdings than used to classify major regional banks, but did the other two bank groups. At the same greater stress was given to domestic activi­ time, after adjustment for loan sales, growth ties and the relative importance of these in total loans and in business loans was con­ banks in their own area of the country. siderably stronger at the multinational banks The remaining 250 weekly reporting banks than at either the major regional or large were designated “Large local banks.” 3 local banks in 1969. The experience of these groups of banks The pattern of deposit and credit flows at with deposit flows has differed considerably. these three groups of banks in 1970 differed In 1968 the multinational banks lagged considerably from that recorded in 1969. somewhat behind the other two groups in Referring again to Tables 3 and 4, it will the expansion of deposits. However, in 1969 be noted that the multinational banks gained both the multinational banks and major a substantial volume of new deposits during regional banks experienced deposit outflows the year. This growth, measured in both that were relatively much more severe than absolute and relative terms, was considera­ those recorded by the large local banks. bly stronger than that which occurred at the major regional banks, and it was somewhat 2 The approach was first described in “The Bank­ ing Structure and Monetary Management,” which I stronger than that recorded by the large presented before the San Francisco Bond Club, April local banks. 1, 1970. 3 It should be remembered that the smallest banks Yet growth in earning assets at the multi­ in this group have total deposits of at least $100 million. national banks was only slightly above that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 311 recorded by the major regional banks and tion of this kind especially helpful in under­ was considerably less than that which oc­ standing how shifts in monetary policy or curred at the large local banks. The ex­ other exogenous developments work their planation for the failure of earning asset way through the banking system and how developments at the three groups of banks the results of these developments alter the to match more closely changes in deposits course of general economic conditions. at these banks is that the multinational banks decided to use a large portion of their in­ ASSET PREFERENCES OF COMMERCIAL coming deposit funds to reduce nondeposit BANKS liabilities. The large local banks, on the It is widely recognized that commercial other hand, channeled only a small portion banks channel a major share of their lendof their relatively large inflow of deposits able funds into loans to business firms. How­ to the repayment of nondeposit liabilities, ever, the extent to which this is true is less while there was virtually no net change at widely appreciated. To cast more light on major regional banks. the role of business loans in bank lending, A fairly diverse pattern of change in the composition of earning assets (total credit expansion can also be seen in the loans and investments) of all insured com­ statistical data for the three groups of banks. mercial banks, as of June 1966 and June It appears that loan demands, particularly 1970, was examined in considerable detail. business loan demands, eased markedly at The results are shown in Tables 5 through both the multinational and major regional 12 and in Charts A through C. ‘ There is no banks during 1970. Multinational banks need to discuss here the detailed findings. recorded a slight drop in their total loans, However, several points should be made, for adjusted for loan sales, and a somewhat they throw considerable light on the asset larger decrease in their business loans. The preferences of commercial banks. The first major regional banks had a modest rise in comments are based on the banks’ structure total loans (adjusted) and no net change in of earning assets in June 1970, and they loans to business. In contrast, growth in apply to all classes of banks: all insured total loans at the large local banks was banks combined; all Federal Reserve mem­ somewhat stronger in 1970 than in 1969. In ber banks; national banks; and insured fact, the 1970 advance in their business nonmember banks. Charts A through C loans was nearly as large as the relatively might be particularly helpful in following the sharp advance recorded in 1969. All three discussion. Chart A refers to all insured groups of banks made net additions to their banks; Chart B to Federal Reserve mem­ investment portfolios during 1970. How­ ber banks; and Chart C to insured non­ ever, growth at the multinational banks was member banks. The following generalizasubstantially stronger than at the other groups of banks. 1 In this part of the analysis, the 13,000-odd in­ sured commercial banks were grouped by deposit The above analysis provides useful in­ size, and 22 asset categories were identified separately. sight into the relative impact that changes in For each individual bank, the ratio of a particular asset category to the bank’s total earning assets was monetary and credit conditions have on calculated. These ratios for individual banks were different categories of banks and into the then averaged to obtain ratios for each size group of banks. All insured banks were further subdivided ways in which these different groups of into three classes: all Federal Reserve member banks; institutions have adjusted to the shifting de­ national banks; and insured nonmember banks. Data were obtained from the call reports for June 1966 posit and loan circumstances. I find informa­ and June 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN □ APRIL 1971 tions seem to hold true for each group of at the medium-size banks and lowest at both banks: the smallest and largest size groups of banks. In general, such loans at the largest banks —Small banks hold a larger proportion of their amount to about 15 per cent of total earn­ earning assets in securities than do larger ing assets. In contrast, at medium-size banks, banks: the ratio of total investments (mainly the ratio was about 20 per cent. U.S. Government and State and local issues) —A similar “rainbow-shaped” distribution of to total earning assets declines continually loans to individuals, with respect to size of as the size group of banks increases. While bank, can be observed. there are minor differences among various classes of banks, the ratio generally drops Still further insights into the lending be­ from about 40 per cent for the smallest havior of commercial banks can be gotten banks to about 15 per cent for the largest. from an analysis of the changes in the com­ -Holdings of U.S. Treasury securities become position of their assets, by size of bank, a progressively smaller proportion of total earning assets—and of total investments held between June 1966 and June 1970. The —as the size of banks increase. following generalizations are applicable for -Holdings of State and local government se­ all classes of banks: curities, expressed as a percentage of total earning assets, is generally higher at medium- —During these 4 years, total investments de­ size banks than at either the smallest or clined as a percentage of total earning assets largest size group. at all size groups (and in all classes) of -The ratio of total loans (including Federal banks. The extent of the decline was fairly funds sold) to total earning assets rises uniform—ranging, in almost all instances, continually as the size of banks increases. between 2 and 3 percentage points. Again, while there are some differences —In this period, U.S. Treasury issues declined among bank classes, the ratio is generally —and other securities increased—in relative about 60 per cent for the smallest size group importance at all size groups of banks. and rises to about 75 per cent at the largest —Total loans increased in relative importance size group. during these years. With respect to business -Of the various categories of loans, business loans, there was little if any change in relative loans display the closest—and clearest—as­ importance—except at the very largest sociation with size of bank. The relative banks, where such loans climbed a few importance of such loans compared with percentage points in relation to total earning total earning assets climbs progressively and assets. in tandem as the size of banks advances. The —Real estate loans decreased at the smallest ratio of business loans to total earning assets size group of banks and increased at the rises from about 8 per cent at the smallest largest size groups—when expressed as a size group to about 25 to 30 per cent at the proportion of total earning assets. However, largest. in both cases, the changes were quite mod­ -A similar pattern—although less dramatic— erate—about 1 or 2 percentage points. is evident in the case of loans to financial in­ —No general pattern of change in relative im­ stitutions (banks, nonbank financial institu­ portance of other loan categories is discern­ tions, and brokers and dealers) and in loans ible. The changes which did occur in par­ to other investors for carrying securities. ticular size groups were quite small. These “financial” loans rise from about 1 per cent at the smallest banks to about 8 One other aspect of the analysis of com­ per cent at the largest lenders. mercial bank asset preferences may be of -Loans to farmers as a percentage of total particular interest to this committee. This earning assets decline as the size of bank concerns the extent to which national banks increases—from around 17 per cent to 1 are using their statutory potential to make per cent. real estate loans. Under Section 24 of the -Real estate loans expressed as a proportion of total earning assets are generally highest Federal Reserve Act, a national bank’s total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 313 real estate loans are limited to an amount through the banking system whatever addi­ equal to its total capital and surplus or 70 tions to bank reserves it finds consistent with per cent of its time and savings deposits— over-all monetary policy objectives, this whichever is the greater. Thus, one can suggests that the lending behavior of com­ readily compare the national bank’s actual mercial banks must be a matter of prime holdings of real estate loans with their statu­ concern. In my judgment the Federal Re­ tory lending potential. serve needs a better set of tools with which The 70 per cent time and savings deposits to assure that the banks’ lending behavior criterion was used in the present analysis, reinforces the basic aims of monetary man­ and the results are shown in Table 13 and agement. Chart D.5 Several of the findings should be mentioned: GROWING IMPORTANCE OF BANKS OUT­ SIDE THE FEDERAL RESERVE SYSTEM —The very largest and very smallest size groups of banks appear to make less use of their I stressed at the outset that the authority to real estate lending than do banks in the set supplemental reserve requirements on medium-size range. Thus, the pattern of use assets should not be restricted to member is approximately the same as that observed with respect to real estate loans as a propor­ banks of the Federal Reserve System. In­ tion of the banks’ total earning assets. stead, it should also apply to insured com­ —The relative use of real estate lending po­ mercial banks that are not members of the tential by all except the very largest size System. There are at least two reasons why group of banks declined between 1966 and this should be the case. 1970. At the largest banks, use of the poten­ tial rose significantly. The first one is the need to avoid aggra­ —As a result of these changes, in 1970 the vating the already serious problem of attri­ use of lending potential by the largest group tion in Federal Reserve membership. Be­ of banks was higher than that for the three tween 1960 and 1970 the number of mem­ smallest size classes. Banks in the three ber banks shrank by 414 (6 per cent) to intermediate-size groups, however, continued to make the most intensive use of their lend­ 5,803, while the number of all insured com­ ing potential. mercial banks expanded by 338 (2Vi per cent). The number of insured banks that On the basis of the evidence yielded by are not members of the Federal Reserve this analysis of commercial banks’ asset System rose by 749 (11 per cent) to 7,675. preferences, I reach the following conclu­ Among Federal Reserve member banks, the sions: the attraction of loans to business is number of national banks increased by 95 so strong that one should ordinarily expect to 4,637. In contrast, the number of Statebanks to respond to the fullest extent possi­ chartered member banks (which are mem­ ble to the demand for credit by business bers by choice) dropped by 509 (30 per firms. Experience indicates, moreover, that cent) to 1,166. in a period of severe monetary restraint, Reflecting these trends, a significant other sectors of the economy are likely to change occurred in the structure of the bank­ obtain proportionately less—while the busi­ ing system during the last decade as far as ness sector obtains proportionately more— membership in the Federal Reserve System of a given supply of commercial bank funds. is concerned. In 1960 member banks con­ Since the Federal Reserve must channel stituted 47 per cent of the total number of 5 The calculations were made using the same insured commercial banks, and they held statistical procedures described above for the analysis of the banks’ asset composition. 84 per cent of total deposits and of total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN □ APRIL 1971 loans and investments. By 1970 they repre­ banks. From these data it would appear that, sented 43 per cent of the banks, and the on average, nonmember banks have an im­ ratio for both deposits and loans had pact on the change in the money supply dropped to 80 per cent. Moreover, during which is greater than the relative share of the last decade, insured nonmember banks money supply deposits held at these institu­ accounted for one-quarter of the rise in tions. total deposits and in total loans and invest­ In Table 16 total bank credit and selected ments—although they held only one-sixth components outstanding at each class of of the total in each category in 1960. bank are shown for each year 1960-70. To a considerable extent, the attrition in These data tell the same kind of story Federal Reserve membership can be traced sketched above in the case of the money to the reluctance of many of the smaller supply. Nonmember banks are providing a State-chartered banks to carry the already rising share of the credit extended by insured existing burden of required reserves. In fact, commercial banks, and they are responsible all of the relative decline in the proportion for an increasing proportion of the fluctua­ of banks that are members of the Federal tions in the volume of such credit outstand­ Reserve System was among State-chartered ing. Their impact on the market for par­ institutions. State members declined from ticular types of bank loans (for example, 13 per cent to 9 per cent of all insured com­ real estate loans) in a given year can be mercial banks between 1960 and 1970, especially noticeable. while national banks remained unchanged at Thus, the lending behavior of commercial 34 per cent. This already difficult situation banks outside the Federal Reserve System is should not be made worse by restricting the already complicating the task of monetary application of supplemental reserve require­ management. Hopefully, the situation will ments only to Federal Reserve member not be made more complicated by the con­ banks. tinued exemption of nonmember banks from The second reason for covering insured the requirement to carry reserves fixed by nonmember banks is their growing impact the Federal Reserve—while supplemental on total bank credit and the money supply. reserves on assets are applied to member The magnitude of this impact can be seen banks. Instead, it would be preferable that clearly in Tables 14, 15, and 16. Table 14 all insured commercial banks be required to shows the level of the total money supply carry reserves—both on deposits and on as­ and its components as of December for each sets—set by the Federal Reserve on the basis year from 1960 to 1970. Table 15 shows of over-all requirements of monetary man­ (a) Federal Reserve member bank and non­ agement. At the same time, as the Federal member bank demand deposits as a percent­ Reserve Board has recommended for sev­ eral years, nonmember banks should be age of demand deposits included in the total given the privilege of borrowing at Federal money supply and (b) the distribution of Reserve Banks. changes in these items for each year 1960- 70. These data indicate that, in all years RESERVE REQUIREMENTS IN except 1970, the proportion of the change HISTORICAL PERSPECTIVE in the demand deposit component of the At this juncture, I would like to digress money supply accounted for by nonmember briefly to stress a few points that are fre­ banks was greater than the proportion of quently overlooked in discussions of the total demand deposits accounted for by these appropriate role of required reserves in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 315 banking system. Unfortunately, even today persisted until the mid-1930’s. By an amend­ the fact that such reserves are useful purely ment to the Federal Reserve Act in May as instruments of monetary management is 1933 (referred to as the Thomas Amend­ not fully understood—and the possibility of ment), authority was given for the first time extending this function further is compre­ to vary reserve requirements for member hended even less. banks. However, the authority was subject In the United States several historical to the proclamation of an emergency by the experiences with required reserves are quite President (which was never done in this instructive. It will be recalled that the Na­ connection), and the authority was never tional Banking Act of 1863 for the first time used. In the Banking Act of 1935, the dis­ established legal reserve requirements for cretionary authority was given to the Fed­ federally chartered banks. The basic assump­ eral Reserve Board directly. This step repre­ tion was that required reserves would pro­ sented a clear recognition of the role of vide liquidity for both bank notes and de­ required reserves as a tool of monetary posits. National banks in central reserve and control—which could be used to influence reserve cities had to maintain reserves equal directly the rate of expansion of aggregate to 25 per cent of outstanding notes and de­ bank credit. The Board has made consider­ posits, and for banks in other cities (country able use of this authority since it was first banks) the ratio was 15 per cent. The re­ employed in August 1936. quirement for notes was dropped in 1874. In my opinion the next step in the evo­ The notion that reserves were assumed to lution of the reserve requirement tool should provide liquidity for individual banks was be to make it more useful in cushioning the evidenced by the form in which required impact of shifts in bank credit flows on par­ reserves could be held: for banks, in central ticular sectors of the economy. The sugges­ reserve cities, vault cash; for reserve city tion that the Board have authority to set banks, half in vault cash and half in deposits supplemental reserve requirements on bank in central reserve or reserve city banks; for assets represents such an innovation. country banks, two-fifths in vault cash and three-fifths in deposits in reserve city or cen­ EVOLUTION OF RESERVE REQUIREMENTS IN RECENT YEARS tral reserve city banks. The record of Amer­ ican economic history shows quite clearly The suggestion that one of the traditional that the system of required reserves estab­ instruments of monetary policy be reordered lished under the National Banking Act to influence the cost and availability of failed to meet the liquidity goal each time it credit in particular economic sectors is not was tested. The reason for the failure (the especially startling. As a matter of fact, the impossibility of an individual bank being Federal Reserve Board has shown consider­ able to liquidate enough assets to meet with­ able flexibility in the use of reserve require­ drawals during periods of crisis) was under­ ments in the last few years. For the most stood by only a few observers. part this has involved tailoring changes in Perhaps that fact explains why the con­ such requirements to differentiate the impact cept of “pooling” reserves was carried over by size of bank—as implied by deposit size. into the Federal Reserve Act in 1913. While For example, in July 1966 the requirement a few innovations were made in the adminis­ on time deposits over $5 million was raised tration of required reserves, the idea that from 4 per cent to 5 per cent—and kept at they were needed as a source of liquidity 4 per cent on deposits below that amount. In Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN □ APRIL 1971 September of the same year the percentage centives for banks to avoid precipitate re­ was raised further to 6 per cent on the $5 duction in Euro-dollar borrowings at times, million and over category; again no change such as the present, when interest differen­ was made for amounts below that figure. In tials favor repayment of those borrowings. March 1967 in two Vi -percentage-point In the same vein the Federal Reserve steps, reserve requirements were cut from Board published for comment a proposal to 4 per cent to 3 per cent on savings deposits apply reserve requirements to commercial and on time deposits under $5 million. The paper when offered by a bank-related cor­ requirement was left at 6 per cent on time poration and when the proceeds are used to deposits over $5 million. supply funds to the member bank. The In January 1968 the Federal Reserve Board put this issue aside for a time in early Board also began to differentiate reserve re­ 1970 because of a desire to avoid exerting quirements on demand deposits. At that additional restraint on money and credit time, the requirement was raised from 16 Vi markets. However, the question was opened per cent to 17 per cent on deposits over $5 again last summer, and reserve requirements million at reserve city banks, while the re­ were applied to bank-related commercial quirement on amounts below this figure was paper in October 1970. Demand deposit left unchanged. At country banks, the cor­ requirement percentages were applied to responding increase was from 12 per cent to paper with initial maturities of less than 30 12 Vi per cent for demand deposits over $5 days, and time deposit requirements were million, while it remained at 12 per cent on applied to paper with longer maturities. This amounts below that cutoff. In April 1969 action was announced a month in advance a Vi percentage point increase was made of the effective date, and banks were able to effective at all member banks and on all shift most of their commercial paper funds demand deposits while maintaining the Vi into the time deposit requirement category. percentage point differential on demand de­ In this action the Board lowered reserve re­ posits above and below $5 million. quirements on time deposits over $5 million Undoubtedly the most imaginative use of 1 percentage point to 5 per cent and estab­ reserve requirements in recent years has lished the new commercial paper require­ been their application to Euro-dollar bor­ ment at the same level. rowings by American banks. In October In November 1970, following significant 1969 the Board established a marginal re­ reductions by some banks in outstanding serve requirement of 10 per cent on Euro­ Euro-dollar borrowings and in reserve-free dollar borrowings in excess of amounts out­ bases, the Board increased from 10 per cent standing in a base period—the four weeks to 20 per cent the rate of reserve require­ ending May 28, 1969—and on foreign ments on borrowings in excess of reservebranch loans to U.S. residents in excess of free bases, thereby giving the banks an base-period amounts. (Banks that did not added inducement to preserve their reservehave outstanding borrowings were given free bases against a time of future need. At minimum reserve-free bases equal to a speci­ that time the Board also applied the auto­ fied percentage of deposits.) The Board also matic downward adjustment to banks that provided that the reserve-free bases be sub­ operated under a minimum base equal to ject to automatic downward adjustment to 3 per cent of deposits. the extent that borrowings fell below the On January 15,1971, the Board amended base-period levels, thereby creating some in­ its regulations to permit banks to count to­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 317 ward maintenance of their reserve-free bases to nonmember banks in the future) could any funds invested by foreign branches in be reduced. Export-Import Bank securities offered un­ In suggesting that this possibility be ex­ der a program announced by that institu­ plored, I am convinced that the Federal tion. At that time the Board postponed for Reserve needs a better means of influencing banks using a minimum base the application the availability of credit in different sectors of the automatic downward adjustment of of the economy. At the same time, I am their bases. Last week a further amendment keenly aware of the desirability of assuring was made to the Board’s regulations which that the instrument used would minimize extended to direct Treasury securities the interference with normal business decisions same privilege previously accorded the and the economic forces of the market place. Export-Import Bank issues. The banking community—within whatever outer limits of credit expansion the central EXTENDING THE RANGE OF RESERVE bank considers are consistent with stabiliza­ REQUIREMENTS tion policy—can best allocate financial re­ sources among individual borrowers. There­ It was against this emerging background that fore, banks should be assured as much I first suggested in February 1970 that con­ freedom of choice as the basic objectives of sideration might be given to applying a sup­ maintaining a balanced economy would plemental reserve requirement on loans ex­ permit. tended by U.S. banks to foreign borrowers Since, during a period of inflation, the as a replacement for the present voluntary object would continue to be to restrain the foreign credit restraint program. At the time growth of bank lending rather than to bur­ I emphasized that such a market-oriented den the amount of lending achieved by some approach would be superior to one based on date in the past, the reserves might apply ceilings fixed by administrative decision— only to the amount of lending above some and at the same time it would offer meaning­ determined volume. That is, the cash re­ ful protection to our balance of payments. serves would constitute marginal, rather In April last year I went on to suggest than average, required reserves. The ap­ that thought might also be given to the possi­ proach might be varied so that a cash re­ bility of adopting such a requirement for serve requirement might be applied against domestic purposes as well. The objective of whatever new loans the bank might extend the supplemental reserve on domestic loans rather than apply a marginal reserve against would be to raise the cost of bank lending by the amount of loans above the amount out­ reducing the marginal rate of return to the standing on a particular date. bank making the loan—and thereby dampen Under either variant of this approach, the the expansion of bank loans. The basic pur­ percentage reserve requirement would be pose of the supplemental reserve would not set on the basis of the Federal Reserve’s be simply to levy new reserve requirements on the banking system. If it were thought determination of the degree of influence to that its adoption would raise the average be applied, for domestic stabilization rea­ level of reserves required beyond what the sons, against unchecked bank loan expan­ Board thought was necessary for general sion. The restraint would be levied in pro­ stabilization purposes, the regular reserve portion to the lending. The approach would requirements applicable to deposits of Fed­ not require immediate asset adjustments by eral Reserve member banks (and hopefully each bank; instead it would leave the deci­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN □ APRIL 1971 sion to individual banks to adapt their lend­ reserves now required against deposit liabil­ ing to the circumstances at the time. ities, would not necessarily pose insurmount­ The loans that would be subject to the able problems for over-all monetary policy. supplemental reserve requirement could be While there would be an impact on the re­ defined in a way that would take account of quired reserves of commercial banks, if the any set of priorities that might be established Federal Reserve wished, this could be offset from ume to time. For example: if the ob­ by an appropriate reduction in reserve re­ jective of public policy were to give priority quirements on deposits or by open market to loans to meet the credit needs of State operations. While the technical aspects of and local governments, it could be achieved open market operations might become more through a lower reserve ratio against State complex, I believe such difficulties could be and local security holdings than the ratio overcome. applied to other assets. Loans to acquire Another question that would be raised if homes could be encouraged—if public supplemental reserve requirements were em­ policy calls for giving housing a high priority ployed concerns larger corporations which —by setting the requirement very low, or have access to credit in many markets. If perhaps at zero. In contrast, if policy called bank loans were the only forms of credit so for substantial restraint on consumer credit restrained, these corporations could well do or on loans to business, the reserve ratio their borrowing elsewhere, displacing other applicable to such loans could be set quite borrowers. Consequently, it is necessary to high. In fact, any array of loan priorities assess the degree to which such shifts from could be adopted and the reserve require­ banks to other credit markets could impair ment scaled accordingly—depending on the the objective of assuring that credit is avail­ changing needs of public policy. able for high-priority needs. Under ordinary circumstances, however, But having cited several questions, I re­ if there were no need to pursue a policy of main confident that answers to problems monetary restraint—and consequently no such as these can be found if enough effort need to be concerned about the side effects is devoted to solving them. of such a policy course—less differentiation Last year when I urged the consideration among types of assets would be necessary. of the supplemental reserve requirement In fact, if there were no need to counteract against assets, I stressed that it be viewed any adverse byproducts of monetary re­ as a long-run approach. I emphasized that straint, no supplemental reserve require­ time would be needed to explore its ramifi­ ments would need to be established. If al­ cations—aside from the fact that the Federal ready employed, they would not have to be Reserve Board does not now have the au­ changed. thority to apply reserve requirements to Such a supplemental cash reserve require­ domestic loans of member banks. Moreover, ment system sketched above would have the to avoid adding further to the already exist­ effect of cushioning the impact of monetary ing inequities between nonmember and policy on particular sectors of the economy. member banks of the Federal Reserve Sys­ However, it would do so without any direct tem, I urged that all commercial banks be interference by the Federal Reserve in the made subject to the new provision. As I detailed lending decisions of individual indicated above, I still believe that this step banks. The new reserve requirement, which should be taken. It might be recalled that, probably would be much smaller than the for several years, the Board has urged in its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Annual Report that legislation be passed that will lead, within a year or so, to further which would permit the establishment of a broadening of the scope of reserve require­ system of graduated reserve requirements on ments to include the option to impose vari­ deposits, while extending the coverage to able requirements on particular types of nonmember banks—who would also be bank loans or investments. In the meantime, given access to the Federal Reserve Banks’ its probable impact on our banking system discount window. must be carefully assessed. I believe such an Now that Congress is weighing the mod­ assessment will provide answers to the ques­ ification of reserve requirements, I hope tions that have been raised about this pro­ consideration will be given to extending posal—and thus hasten progress toward a them to nonmember banks. I also hope that better monetary policy—a goal we all these hearings are the first step in a process seek. □ 319 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Com­ mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve 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 Bulletin beginning with the July 1967 issue, and such records have continued to be published in the Board’s Annual Reports. The record for the meeting held on January 12, 1971, follows: 320 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MEETING HELD ON JANUARY 12, 1971 Authority to effect transactions in System Account. The information reviewed at this meeting suggested that real output of goods and services (real gross national product) had declined in the fourth quarter of 1970, largely as a consequence of the strike in the automobile industry that ended in late November. The resumption of higher automobile production was expected to result in a bulge in economic activity in early 1971. The rate of advance in major price indexes appeared to have moderated recently, following substantial increases earlier in the fall. In December the labor market eased further, and the unemploy­ ment rate rose to 6.0 from 5.8 per cent in November. Although both nonfarm payroll employment and industrial production increased, the advances appeared to be attributable to the ending of the auto strike. On the other hand, weekly data suggested that nonautomotive retail sales might have been relatively strong during December. In Novem­ ber private housing starts had risen considerably further, to the highest rate in nearly 2 years. Average wholesale prices—which had declined from mid-October to mid-November—were about unchanged in the following month, when a further reduction in prices of farm products and foods about offset an increase in prices of industrial commodities. Over the fourth quarter as a whole wholesale prices rose much less than in the preceding quarters of 1970 as a result of declines in prices of farm products and foods. In November the rise in the consumer price index slowed appreciably from the accelerated rate of the two preced­ ing months. Staff projections suggested that real GNP would rise sharply in the first quarter in the aftermath of the auto strike, but that the pace of the advance would then slow. For both the first and second quarters the projections contemplated sizable increases in residential construction expenditures and in State and local government outlays. Prospects were for moderate increases in consumer spending, apart from the anticipated return to a higher rate of new car purchases early in the year. Neither defense spending nor business outlays on fixed invest­ ment were expected to contribute to expansion in GNP over the first 321 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 FEDERAL RESERVE BULLETIN □ APRIL 1971 half of the year. It was noted, however, that these projections did not make allowance for the probability that steel users would accumulate inventories of that metal as a hedge against a possible strike in the steel industry at the end of July, when current wage contracts will expire. The deterioration in the U.S. foreign trade balance that had been under way since mid-1970 continued in November. In June and July merchandise exports had been substantially larger than imports, but the surplus had declined in each of the three succeeding months, and in November exports were slightly smaller than imports. With respect to the over-all balance of payments, tentative estimates for the fourth quarter suggested that on the “liquidity” basis 1 the deficit had re­ mained about as large as in the third quarter. The deficit on the “official reserve transactions” basis was very large, mainly as a result of heavy repayments of Euro-dollar borrowings by U.S. banks. Interest rates in the Euro-dollar market rose considerably in the first half of December and then declined sharply after midmonth, reflecting seasonal forces to a large extent. Also contributing to the early-December rise in rates was more aggressive bidding by U.S. banks for Euro-dollars following the November 30 announcement by the Board of Governors of certain measures designed to moderate repayments of Euro-dollar borrowings by these banks. In general, exchange rates for major foreign currencies eased in early December while Euro-dollar interest rates were rising; then toward the end of the month they firmed as Euro-dollar rates declined. Effective January 9, the Bank of France reduced its discount rate from 7 to 6V2 per cent. The Treasury was expected to announce on January 20 the terms on which it would refund securities maturing on February 15, includ­ 1 The balance on the “liquidity” basis is measured by changes in U.S. reserves and in liquid U.S. liabilities to all foreigners. The balance on the “official reserve transactions” basis (sometimes referred to as the “official settlements” basis) is measured by changes in U.S. reserves and in liquid and certain nonliquid liabilities to foreign official agencies, mainly monetary authorities. The latter balance differs from the former by (1) treating changes in liquid U.S. liabilities to foreigners other than official agencies (including liabilities to U.S. bank branches abroad) as ordinary capital flows, and (2) treating changes in certain nonliquid liabilities to foreign monetary authorities as financing items rather than ordinary capital flows. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 323 ing about $5 billion held by the public. It appeared likely that the Treasury would decide at the same time to refund securities maturing in mid-March, and perhaps also to pre-refund certain issues maturing later in the year. In capital markets the strong rally that had been under way since late October halted in mid-December, but only temporarily; yields rose on most types of long-term bonds during the closing weeks of the year, but they turned down again in early January. Short-term interest rates followed a similar pattern. For example, the market rate on 3-month Treasury bills reached a low of about 4.75 per cent shortly after mid-December, advanced to about 4.90 per cent near year-end, and then declined to about 4.65 per cent on the day before this meeting. Various factors contributed to the upward pressures on interest rates in late December. These included the very heavy recent and prospective volume of corporate and municipal bond offerings, the possibility that the Treasury might pre-refund a sizable volume of securities in connection with its mid-February financing, and—in the Government securities sector—uncertainties that existed for a time about the availability of insurance against loss or theft. The renewed declines in market interest rates were stimulated by continuing reports of sluggishness in economic activity, by an easing of conditions in money markets, and by further reductions in the prime lending rate of commercial banks and in Federal Reserve discount rates. The prime rate was lowered to 63A per cent on December 22, 1970, and then to 6V2 per cent on January 6, 1971; and discount rates at 10 Federal Reserve Banks were reduced from 5V2 to 5lA per cent effective January 8. In December interest rates on residential mortgages declined further in both primary markets for conventional home loans and secondary markets for federally underwritten mortgages. Nonbank thrift institu­ tions continued to experience very heavy inflows of savings funds during December, and the net outflows following year-end interest and dividend crediting were much smaller than usual. At commercial banks substantial increases were recorded in Decem­ ber in both consumer-type time and savings deposits and largedenomination certificates of deposit (CD’s). The volume of business loans outstanding (adjusted to include loans that had been sold to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 FEDERAL RESERVE BULLETIN □ APRIL 1971 affiliates) declined for the fourth successive month. However, banks continued to acquire securities at a rapid rate, and total bank credit— as measured by the “adjusted bank credit proxy” 2—rose sharply from November to December. Various measures of the money stock also expanded considerably on the average in December—including “Mb” defined as private demand deposits plus currency in circulation; and UM2,” defined as Mx plus commercial bank time deposits other than large-denomination CD’s. However, growth in M1 was smaller both in December and over the fourth quarter as a whole than had been expected at the time of the previous meeting of the Committee. After having expanded at an annual rate of approximately 6 per cent during the first three quarters of 1970, M1 increased over the fourth quarter at a rate of about 3.5 per cent.3 Fourth-quarter growth rates for M2 and the adjusted bank credit proxy were about 9 and 8 per cent, respectively. System open market operations following the mid-December meet­ ing of the Committee had been directed initially at maintaining the money market conditions that had recently been attained. Subse­ quently, however, when it became clear that Mx was expanding at rates below earlier expectations, easier money market conditions were sought. Operations were complicated by the market churning that is typical of the period around a year-end, and conditions fluctu­ ated relatively widely from day to day. Most recently, however, Federal funds had traded at an effective rate of about AV2 per cent, 2 The series called the “adjusted bank credit proxy” consists of daily-average figures on total member bank deposits subject to reserve requirements, plus Euro-dollar borrowings, bank-related commercial paper, and certain other nondeposit items. In recent years the Committee has been making use of this series as the best available measure, although indirect, of developing move­ ments in bank credit. Because the series can be compiled with a very short lag, it can be kept more nearly current than available bank loan and invest­ ment data. Moreover, daily-average figures for a calendar month are much less subject to the influence of single-date fluctuations than are the available month-end data on total bank credit, which represent estimates of loans and investments at all commercial banks on 1 day—the last Wednesday—of each month. For monthly statistics, see the series entitled “Total member bank deposits plus nondeposit items” in the statistical section of the Federal Reserve Bulletin (on p. A-17 of the January 1971 issue). 3 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 325 compared with the rates around 5 per cent that had prevailed shortly before the preceding meeting. During the interval the System supplied a substantial volume of reserves, partly through purchases of longerterm Treasury securities. Staff analysis suggested that the bulge in economic activity antici­ pated for the first quarter would tend to produce more rapid growth in money and bank credit than had been recorded in the fourth quarter. According to the analysis, however, some further easing of money market conditions probably would be required if M1 were to expand sufficiently over the first quarter—at an annual rate of about 7.5 per cent—to compensate for the shortfall in the fourth quarter from the expected growth rate. The Committee agreed that it would be desirable at this time to promote accommodative conditions in credit markets and moderate expansion in monetary and credit aggregates. In the discussion diver­ gent views were expressed about the degree to which open market operations during the period immediately ahead should be directed toward attaining specific objectives for various monetary and credit aggregates. A number of members favored seeking growth rates in the first quarter high enough to make up for the fourth-quarter short­ fall in Mlm Others, while not necessarily opposed to such growth rates, noted that their concern about the shortfall was mitigated by the recent relatively high rates of expansion in M2 and the bank credit proxy, or by the fact that they did not attach great importance in any event to short-run fluctuations in the growth rate of a single monetary aggregate. At the conclusion of the discussion the Committee agreed that the attainment of its objectives for both credit conditions and the monetary and credit aggregates would be facilitated by some moderate easing of money market conditions; and that such easing should be accom­ plished soon, partly because it would become necessary to take account of the forthcoming Treasury financing later in the month. The mem­ bers also agreed that money market conditions should be eased some­ what further if it appeared that the aggregates were expanding at rates below those consistent with making up the fourth-quarter shortfall in Mx. The following current economic policy directive was issued to the Federal Reserve Bank of New York: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 FEDERAL RESERVE BULLETIN □ APRIL 1971 The information reviewed at this meeting suggests that real output of goods and services declined in the fourth quarter of 1970, largely as a consequence of the recent strike in the automobile industry. Unemployment increased further in December. The resumption of higher automobile production is expected to result in a bulge in activity in early 1971. Wage rates generally are continuing to rise at a rapid pace, but gains in productivity appear to be slowing the increase in unit labor costs. The rise in both wholesale and con­ sumer prices appears to have moderated recently, following sub­ stantial increases earlier in the fall. Most market interest rates turned down again in recent days, and Federal Reserve discount rates were reduced by an additional one-quarter of a percentage point. Demands for funds in capital markets have continued heavy, but business loan demands at banks remain weak. Although growth in the money supply accelerated in December, over the fourth quarter as a whole it was at a rate below that prevailing in the pre­ ceding three quarters. Banks made substantial further additions to their holdings of securities in December, and bank credit increased sharply. The foreign trade surplus has declined markedly in recent months. The over-all balance of payments deficit on the liquidity basis in the fourth quarter was apparently about as large as in the third quarter. The deficit on the official settlements basis was very large as banks continued to repay Euro-dollar liabilities. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the resumption of sustainable economic growth, while encouraging an orderly reduction in the rate of inflation and the attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, the Committee seeks to promote ac­ commodative conditions in credit markets and moderate expansion in monetary and credit aggregates. System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining bank reserves and money market conditions consistent with those objectives, taking account of the forthcoming Treasury financing. Votes for this action: Messrs. Burns, Brimmer, Daane, Heflin, Maisel, Mitchell, Robertson, Swan, Mayo, and Treiber. Vote against this action: Mr. Francis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 327 Absent and not voting: Messrs. Hayes and Sher­ rill. (Mr. Treiber voted as alternate for Mr. Hayes, and Mr. Mayo voted as alternate for the late Mr. Hickman.) Mr. Francis dissented from this action for reasons similar to those underlying his dissent from the directive adopted at the December meeting. In his judgment, if growth in were maintained over coming months at an average annual rate of approximately 5 per cent—about the average prevailing over the second half of 1970— the longer-run performance of production and prices would be better than if money were to expand at some faster rate. In addition, he favored reducing the emphasis given to money market conditions in implementing open market policy. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS during the four-week (“computation”) period end­ ing on the Wednesday fifteen days before the By Joint Resolution approved March 31, 1971 beginning of the maintenance period, exceeds the (Public Law 92-8) Congress extended until June 1, greater of 1971, the flexible authority of the Board, the (i) the lowest corresponding daily average Federal Deposit Insurance Corporation, and the total8 for any computation period ending after Federal Home Loan Bank Board in regulating the November 25, 1970, or maximum rates of interest or dividends payable by (ii) 3 per cent of the member bank’s daily insured banks and savings and loan associations on average deposits subject to § 204.5(a) of this chap­ deposits or share accounts. ter (Regulation D) during the current computation period, or the lowest corresponding daily average RESERVES AGAINST EURODOLLAR BORROWINGS total8 for any computation period beginning on The Board of Governors, effective April 1, 1971, or after January 21, 1971, and after the bank has amended footnote 8 to section 213.7(a) of Regu­ had a foreign branch in operation for more than lation M, “Foreign Activities of National Banks”, 90 days, whichever amount is the lesser: to provide a means by which a member bank may Provided, That the applicable base computed un­ retain its reserve-free base with respect to its Euro­ der (i) or (ii) shall be reduced by the daily average dollar borrowings from its foreign branches by amount of any deposits of the member bank counting within its base the amount of purchases subject to § 204.5(c) of this chapter (Regulation by its foreign branches of certain U.S. Treasury D) during the computation period. obligations. The text of the amendment reads as * * * * * follows: MARGIN REQUIREMENTS AMENDMENT TO REGULATION M The Board of Governors, effective March 30, Effective April 1, 1971, footnote 8 to section 1971, amended Regulation G, “Securities Credit 213.7(a) is amended to read as set forth below. by Persons other than Banks, Brokers, or Dealers”, The text of section 213.7(a) reads as follows: by adding a new subparagraph (3) to section 207.1(f), and Regulation U, “Credit by Banks for SECTION 213.7—RESERVES AGAINST the Purpose of Purchasing or Carrying Margin FOREIGN BRANCH DEPOSITS Stocks”, by adding new paragraph (1) to section (a) Transactions with parent bank. During each 221.2. The amendments, which are issued pursuant week of the four-week period beginning October to section 7(d)(E) of the Securities Exchange Act 16, 1969, and during each week of each succes­ of 1934, authorize the Board, upon certification by sive four-week (“maintenance”) period, a member the Securities Investor Protection Corporation that bank having one or more foreign branches shall circumstances exist which warrant such action, to maintain with the Reserve Bank of its district, as a reserve against its foreign branch deposits, a United States and (2) credit extended or renewed by a domestic office after June 26, 1969, to persons not resi­ daily average balance equal to 20 per cent of the dents of the United States to the extent such credit was amount by which the daily average total of not extended in order to replace credit outstanding on (1) net balances due from its domestic offices that date which was paid prior to its original maturity (see definition of United States resident in footnote 9). to such branches, and 8 Including the principal amount paid by a foreign (2) assets (including participations) held by branch of the member bank for obligations held by such such branches which were acquired from its do­ branch that were purchased by it from the Export-Import Bank of the United States pursuant to its program mestic offices,7 announced on January 15, 1971, or purchased by it from the U.S. Treasury pursuant to its program announced on 7 Excluding (1) assets so held on June 26, 1969, repre­ April 1, 1971, and excluding assets representing credit senting credit extended to persons not residents of the extended to persons not residents of the United States. 328 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

exempt a loan for the purpose of making a loan or Part 220 of this Chapter (Regulation T), which providing capital to a broker or dealer subject to loan has been exempted by the Board of Governors Regulation T, “Credit by Brokers and Dealers”, of the Federal Reserve System, by Order, from the from the restrictions imposed by Regulations G requirements of this part, either unconditionally or and U. The text of the amendments reads as upon specified terms and conditions or for stated follows: periods, upon a finding that the granting of such an exemption is necessary or appropriate, in the AMENDMENT TO REGULATION G public interest or for the protection of investors; Provided, That the Securities Investor Protection Effective March 30, 1971, section 207.1(f) is Corporation shall have certified to the Board that amended by adding a new subparagraph (3) as such action is appropriate under the circumstances. follows: BANK HOLDING COMPANIES SECTION 207.1—GENERAL RULE The Board of Governors, effective March 18, ^ 1971, amended Regulation Y, “Bank Holding Companies” by adding paragraph (d) to section (f) Credit extended to person subject to Regu­ 222.4. The amendment implements the Board’s lation T. authority to impose conditions upon holding com­ pany acquisitions and expansions on the basis of section 4(c)(12) of the Bank Holding Company (3) The Board of Governors of the Federal Act. Under the amendment, acquisitions of going Reserve System may by Order exempt from the concerns by a company that became a bank hold­ prohibitions of this paragraph (f) and the require­ ing company as a result of the 1970 amendments ments of this part, either unconditionally or upon to the Bank Holding Company Act and elects to specified terms and conditions or for stated periods, divest itself of its bank may normally be made any loan for the purpose of making a loan or pro­ following a simple notification procedure, and de viding capital to a person who is subject to Part novo expansion may be undertaken without further 220 of this Chapter (Regulation T), upon a find­ action. Acquisitions by other such companies re­ ing that the granting of such an exemption is neces­ quire the Board’s approval. That approval will sary or appropriate, in the public interest or for normally be limited to acquisitions a holding com­ the protection of investors; Provided, That the pany demonstrates are necessary to assure that the Securities Investor Protection Corporation shall company’s required divestitures can be made as have certified to the Board that such action is quickly as possible, as efficiently as possible, and appropriate under the circumstances. with as little economic loss to the divesting com­ pany as possible. A form for use in filing an irrevo­ AMENDMENT TO REGULATION U cable declaration under this amendment has been Effective March 30, 1971, section 221.2 is adopted by the Board. Copies are available at the amended by deleting the period at the end of para­ Federal Reserve Banks. graph (k) and inserting in its place “; and”, and The text of the amendment reads as follows: by adding a new paragraph (1) as follows: AMENDMENT TO REGULATION Y SECTION 221.2—EXCEPTIONS TO Effective March 18, 1971, section 222.4 is GENERAL RULE amended by adding a new paragraph as follows: Notwithstanding the provisions of § 221.1, a bank may extend and may maintain any credit for SECTION 222.4—INTERESTS IN the purpose specified in § 221.1, without regard to NONBANKING ORGANIZATIONS the limitations prescribed therein, or in § 221.3 (t), if the credit comes within any of the following % 5fc :j5 sjs (d) Certain acquisitions by companies that descriptions. became bank holding companies on December 31, sf: sfc H* Hs H5 1970, as a result of the 1970 amendments. Except (1) Any loan for the purpose of making a loan as provided in this paragraph, no bank holding or providing capital to a person who is subject to company may acquire, directly or indirectly, any 329 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 FEDERAL RESERVE BULLETIN □ APRIL 1971 shares or commence to engage in any activities on ties in terms of a bank’s capital structure. Accord­ the basis of section 4(c) (12) of the Act. A com­ ingly, the Board has decided that, for the purposes pany may file with the Board an irrevocable decla­ of the limitations set forth above, undivided profits ration, in the form approved by the Board, that it may be included as part of “capital stock and will cease to be a bank holding company by Janu­ surplus”. ary 1, 1981, unless it is granted an exemption un­ As used herein, the term “undivided profits” der section 4(d) of the Act. A company that has includes paid-in or earned profits (unearned in­ filed such a declaration may (1) commence new come must be deducted); reserves for loan losses activities de novo, either directly or through a or bad debts, less the amount of tax which would subsidiary, without further action under this para­ become payable with respect to the tax-free portion graph, until such time as the Board notifies the of the reserve if such portion were transferred company to the contrary, and (2) make an acqui­ from the reserve; valuation reserves for securities; sition of a going concern 45 days after the com­ and reserves for contingencies. It does not include pany has informed its Reserve Bank of the pro­ reserves for dividends declared or reserves for posed acquisition, unless the company is notified taxes, interest and expenses. to the contrary within that time or unless it is permitted to make the acquisition at an earlier ORDERS UNDER BANK MERGER ACT date, based on exigent circumstances of a particu­ UNION BANK, lar case. If the company has not filed such a decla­ LOS ANGELES, CALIFORNIA ration, no acquisition may be made, or activity commenced, on the basis of section 4(c)(12) ex­ In the matter of the application of Union Bank, cept with prior approval of the Board. Normally Los Angeles, California, for approval of merger only requests with respect to acquisitions or expan­ with Bank of Long Beach, N.A., Long Beach, sion of activities that the company demonstrates to California. the satisfaction of the Board are necessary to en­ able it more efficiently to market its assets subject Order Approving Application for Merger of to divestiture will be approved. This paragraph Banks Under Bank Merger Act does not apply to acquisitions made pursuant to a binding commitment entered into before March 23, There has come before the Board of Governors, 1971. pursuant to the Bank Merger Act (12 U.S.C. 1828(c)), an application by Union Bank, Los An­ geles, California, a member State bank of the Fed­ UNDIVIDED PROFITS AS “CAPITAL STOCK eral Reserve System, for the Board’s prior approval AND SURPLUS1' of the merger of that bank and Bank of Long The Board of Governors has reexamined the Beach, N.A., Long Beach, California, under the question whether a member bank’s undivided charter and name of Union Bank. As an incident profits may be considered as part of its “capital to the merger, the two existing offices and an ap­ stock and surplus”, as that or a similar term is used proved office (not yet in operation) of Bank of in provisions of the Federal Reserve Act that limit Long Beach, N.A. would become branches of the member banks with respect to the following: loans resulting bank. Notice of the proposed merger, in to affiliates (12 U.S.C. 371c), purchases of invest­ form approved by the Board, has been published ment securities (12 U.S.C. 335), loans on stock as required by said Act. or bond collateral (12 U.S.C. 248(m)), deposits In accordance with the Act, the Board requested with nonmember banks (12 U.S.C. 463), bank reports on the competitive factors involved from acceptances (12 U.S.C. 372, 373), investments in the Attorney General, the Comptroller of the and by Edge and Agreement corporations (12 Currency, and the Federal Deposit Insurance U.S.C. 601, 615, 618), and the amount of paper Corporation. The Board has considered all relevant of one borrower that may be discounted or ac­ material contained in the record in the light of the cepted as collateral for an advance by a Federal factors set forth in the Act, including the effect of Reserve Bank (12 U.S.C. 330, 345, 347). the proposal on competition, the financial and Upon such reexamination the Board concludes managerial resources and prospects of the banks that its negative view expressed in 1964 is unneces­ concerned, and the convenience and needs of the sarily restrictive in the light of the Congressional communities to be served, and finds that: purpose in establishing limitations on bank activi­ Union Bank (deposits of $1.5 billion) is the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 331 seventh largest bank in California, having about On the basis of the foregoing, the Board con­ 3.3 per cent of the commercial bank deposits in cludes that consummation of the proposal would the State. (All banking data are as of June 30, not eliminate significant existing or potential com­ 1970.) It operates its main office and 16 branches petition. Considerations relating to the financial and in southern California; in northern California it managerial resources and future prospects of the maintains ten offices and has recently (February banks are consistent with approval of the applica­ 11, 1971) received approval to operate another tion. Customers of Long Beach, N.A. would benefit office as an incident to a merger. Bank of Long by the merger because Union Bank plans to offer Beach, N.A. (deposits of $16 million) operates them an additional source of a wider range of two offices in Long Beach, California, and has banking services, such as computer and trust received approval to operate an office in the down­ services, and through its larger lending limit would town district of that city. be better able to meet the needs of medium and Bank of Long Beach, N.A., with about 2.5 per large-sized business customers. Therefore, con­ cent of market deposits, ranks eighth among the venience and needs considerations lend support to 12 banks (total of 50 offices) operating in its approval of the application. It is the Board’s judg­ market area, which includes the cities of Long ment that consummation of the proposed merger Beach, Lakewood, and Signal Hill. Among the would be in the public interest, and that the appli­ competitors of Bank of Long Beach, N.A. are five cation should be approved. of the largest banks in the State; these five banks It is hereby ordered, on the basis of the find­ operate 64 per cent of the offices located in the ings summarized above, that said application be area and control about 69 per cent of the deposits and hereby is approved, provided that the merger in the area. so approved shall not be consummated (a) before The office of Union Bank located closest to the the thirtieth calendar day following the date of nearest office of Bank of Long Beach, N.A. is in this Order, or (b) later than three months after Torrance, which is about 12 miles west of Long the date of this Order, unless such period is ex­ Beach. A large number of offices of other banks tended for good cause by the Board, or by the are located in the densely populated areas inter­ Federal Reserve Bank of San Francisco pursuant vening between the present offices of Union Bank to delegated authority. and Bank of Long Beach, N.A. There is, therefore, By order of the Board of Governors, March no substantial existing competition between these 12, 1971. two banks. Voting for this action: Vice Chairman Robertson Under California law each bank could be per­ and Governors Mitchell, Daane, Maisel, Brimmer, and mitted to establish de novo branch offices in the Sherrill. Absent and not voting: Chairman Burns. areas served by the other. Because of the small size (Signed) Kenneth A. Kenyon, of Bank of Long Beach, N.A., it appears unlikely Deputy Secretary. that bank would in the near future establish a de novo branch outside its market. It also does not [seal] appear probable that Union Bank would establish a de novo branch office in the Long Beach area. THE FARMERS SAVINGS AND TRUST In 1966, Union Bank withdrew an application to COMPANY, establish such a branch because a large scale real MANSFIELD, OHIO estate development did not progress beyond the In the matter of the application of The Farmers planning stages; since that time, Union Bank indi­ Savings and Trust Company, Mansfield, Ohio, for cates that the area is not sufficiently attractive for approval of merger with the Lucas State Bank, establishment of a de novo office of Union Bank. Lucas, Ohio. Furthermore, since Bank of Long Beach, N.A. has only a very small share of the deposits in its area, Order Approving Merger of Banks the amount of potential competition between the Under Bank Merger Act merging banks which would be eliminated in this market area by the proposed transaction is not There has come before the Board of Governors, significant; at the same time, Union Bank’s entry pursuant to the Bank Merger Act (12 U.S.C. into the market by acquisition of Bank of Long 1828(c)), an application by The Farmers Savings Beach, N.A. would likely increase competition and Trust Company, Mansfield, Ohio (“Appli­ among the large banks in the market. cant”), a member State bank of the Federal Re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 FEDERAL RESERVE BULLETIN □ APRIL 1971 serve System, for the Board’s prior approval of managerial resources and prospects of the merg­ the merger of that bank and the Lucas State Bank, ing banks and the resulting bank are satisfactory Lucas, Ohio (“Bank”), under the charter and the and consistent with approval of the application. name of Applicant. As an incident to the merger, Consummation of the merger would provide cus­ the sole office of Bank would become a branch of tomers of Bank with certain additional bank­ Applicant. Notice of the proposed merger, in the ing services; the convenience and needs aspects form approved by the Board, has been published as of the proposal lend weight, therefore, to approval required by said Act. of the transaction. Based upon the foregoing, it Pursuant to the Act, the Board requested reports is the Board’s judgment that consummation of the on the competitive factors involved from the At­ proposal would be in the public interest and that torney General, the Comptroller of the Currency, the application should be approved. and the Federal Deposit Insurance Corporation. It is hereby ordered, on the basis of the find­ The Board has considered all relevant material ings summarized above, that said application be contained in the record in the light of the factors and hereby is approved, provided that the merger set forth in the Act, including the effect of the so approved shall not be consummated (a) before proposal on competition, the financial and man­ the thirtieth calendar day following the date of this agerial resources and prospects of the banks con­ Order, or (b) later than three months after the cerned, and the convenience and needs of the date of this Order, unless such period is extended communities to be served, and finds that: for good cause by the Board, or by the Federal Applicant (deposits $44 million), the third Reserve Bank of Cleveland pursuant to delegated largest of seven banks located in Richmond authority. County, holds about 17 per cent of Richmond By order of the Board of Governors, March County commercial banking deposits. (All bank­ 12, 1971. ing data are as of June 30, 1970.) Bank (deposits Voting for this action: Vice Chairman Robertson $3 million) is the smallest of the seven institutions and Governors Mitchell, Daane, Maisel, Brimmer, and located in Richmond County. Applicant is a sub­ Sherrill. Absent and not voting: Chairman Burns. sidiary of First Banc Group of Ohio, Inc., Colum­ (Signed) Kenneth A. Kenyon, bus, Ohio, which is the fourth largest registered Deputy Secretary. bank holding company in the State, controlling about 3 per cent of deposits in the State of Ohio. [seal] Consummation of the proposed merger would not increase substantially the concentration of banking MANAPORT BANK, resources in any relevant area. MANASSAS, VIRGINIA Applicant was instrumental in organizing Bank in 1928 and provided Bank with its initial man­ In the matter of the application of Manaport agement. Since that time Applicant and Bank have Bank, for approval of merger with First Manassas been closely associated, and each president of Bank Bank and Trust Company. has been either a president or senior officer of Applicant. There is no indication that this close Order Approving Merger of Banks relationship which exists between Applicant and Bank is likely to change in the foreseeable future There has come before the Board of Governors, regardless of the Board’s action with respect to the pursuant to the Bank Merger Act (12 U.S.C. 1828 present application. In view of the close relation­ (c)), an application by Manaport Bank, Manassas, ship which has existed between Applicant and Virginia, a proposed State member bank of the Bank it may be reasonably concluded that present Federal Reserve System, for the Board’s prior and potential competition would neither be fore­ approval, of the merger of that Bank and First closed by approval of the application nor encour­ Manassas Bank and Trust Company, Manassas, aged by its denial. It does not appear that compe­ Virginia, under the charter of the former and the tition with and between other banks in Richmond name of the latter. Notice of the proposed merger, County would be affected in any significant way by in form approved by the Board, has been published consummation of the proposal. pursuant to said Act. The Board concludes that consummation of the Upon consideration of all relevant material in proposed merger would not have an adverse effect the record, including reports received pursuant on competition in any area. The financial and to the Act on the competitive factors involved in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 333 the proposed merger, and in the light of the factors (12 U.S.C. 1828(c)), approving an application by set forth in said Act, Trust Company of Georgia, Atlanta, Georgia for It is hereby ordered, for the reasons set forth prior approval of the merger of Trust Company in the Board’s Statement1 of this date concerning with Peachtree Bank and Trust Company, Cham­ the application of Northern Virginia Bankshares blee, Georgia, by means of Trust Company’s pur­ Incorporated, Bailey’s Crossroads, Virginia, to be­ chase of assets and assumption of liabilities of come a holding company, that said merger appli­ Peachtree Bank. cation be and hereby is approved, provided that There has come before the Board pursuant to said merger shall not be consummated (a) before section 262.2(f)(6) of the Board’s Rules of Pro­ the thirtieth calendar day following the date of cedure (12 CFR 262.2(f)(6)) a petition by the this Order or (b) later than three months after United States Department of Justice for (1) re­ the date of this Order unless such period is ex­ consideration of the Board’s Order of February tended for good cause by the Board, or by the 22, 1971, and (2) a stay in the operation of its Federal Reserve Bank of Richmond pursuant to Order of February 22, 1971 until such time as the delegated authority. Board rules on the petition for reconsideration, By order of the Board of Governors, April 8, and if reconsideration is granted, until such re­ 1971. consideration is completed and the application is Voting for this action: Chairman Burns and Gov­ ernors Robertson, Daane, Brimmer, and Sherrill. either re-approved or disapproved. Absent and not voting: Governors Mitchell and The petition appears to raise complex issues of Maisel. a procedural and substantive nature. In order that (Signed) Kenneth A. Kenyon, the Board may give appropriate consideration to Deputy Secretary. these issues, a stay of the Board’s approval Order [seal] of February 22, 1971 appears to be in the interests of all parties as well as in the public interest. Ac­ TRUST COMPANY OF GEORGIA, cordingly, ATLANTA, GEORGIA It is hereby ordered, that the Board’s Order of In the matter of the application of Trust Com­ February 22, 1971, in this matter be and hereby is pany of Georgia, Atlanta, Georgia, for approval of stayed until further order of the Board. acquisition of assets and assumption of liabilities of By order of the Board of Governors, March Peachtree Bank and Trust Company, Chamblee, 19, 1971. Georgia. Voting for this action: Vice Chairman Robertson Stay of Order Approving Application for and Governors Mitchell, Daane, Maisel, and Brimmer. Absent and not voting: Chairman Burns and Gov­ Acquisition of Assets and Assumption of ernor Sherrill. Liabilities Under Bank Merger Act On February 22, 1971 the Board of Governors (Signed) K enneth A. Kenyon, issued an Order pursuant to the Bank Merger Act Deputy Secretary. i See page 358 of this Bulletin. [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 FEDERAL RESERVE BULLETIN □ APRIL 1971 ORDERS UNDER SECTION 3 OF BANK of the State’s total deposits. (All banking data HOLDING COMPANY ACT are as of June 30, 1970, adjusted to reflect bank holding company formations and acquisitions ap­ MARSHALL & ILSLEY BANK STOCK COR­ proved by the Board to date.) Upon acquisition PORATION, MILWAUKEE, WISCONSIN of Bank ($14 million in deposits), Applicant In the matter of the application of Marshall & would increase its share of State-wide deposits to llsley Bank Stock Corporation, Milwaukee, Wis­ 6.6 per cent. consin, for approval of acquisition of 80 per cent Bank has its principal office in Mayville and one or more of the voting shares of State Bank of branch in Knowles, a few miles north of Mayville. Mayville, Mayville, Wisconsin. It is the only bank in Mayville and serves an area of approximately 215 square miles in northeast Dodge County. The closest banking office of any Order Approving Acquisition of Bank subsidiary of Applicant to Bank is a branch office Stock by Bank Holding Company of Ripon State Bank in Brandon, approximately There has come before the Board of Governors, 25 miles northwest of Mayville in Fond du Lac pursuant to section 3(a)(3) of the Bank Holding County. Under Wisconsin law, no present sub­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) sidiary of Applicant may establish a branch in and section 222.3(a) of Federal Reserve Regu­ Bank’s service area. There appears to be no lation Y (12 CFR 222.3(a)), an application by significant competition between Bank and Ripon Marshall & llsley Bank Stock Corporation, Mil­ State Bank or any other subsidiary of Applicant. waukee, Wisconsin (“Applicant”), a registered Bank is the largest of five banks competing in bank holding company, for the Board’s prior its service area, holding 43.5 per cent of area approval of the acquisition of 80 per cent or more deposits. The second and third largest banks in of the voting shares of State Bank of Mayville, such area hold 20 per cent and 17.4 per cent of Mayville, Wisconsin (“Bank”). area deposits, respectively. All of the banks in As required by section 3(b) of the Act, the Bank’s service area primarily serve the towns in Board gave written notice of receipt of the ap­ which they are located, and Bank is not regarded plication to the Commissioner of Banking of the as dominating such area. State of Wisconsin and requested his views and Based upon the record before it, the Board con­ recommendation. The Commissioner offered no cludes that consummation of the proposed ac­ objection to approval of the application. quisition would not have significant adverse effects Notice of receipt of the application was pub­ on competition in any relevant area. Considera­ lished in the Federal Register on January 5, 1971 tions relating to the financial and managerial (36 Federal Register 129), providing an oppor­ resources and future prospects, as they relate to tunity for interested persons to submit comments Applicant, its subsidiaries, and Bank are regarded and views with respect to the proposed transaction. as consistent with approval of the application. A copy of the application was forwarded to the Bank’s affiliation with Applicant appears to offer United States Department of Justice for its con­ the prospect that expanded or improved banking sideration. The time for filing comments and services will be provided by, or made available views has expired and all those received have been through, Bank to the communities in Bank’s ser­ considered by the Board. vice area—notably, with respect to loan, trust, and The Board has considered the application in computer services—and that Bank’s operations the light of the factors set forth in section 3(c) will be strengthened through special services pro­ of the Act, including the effect of the proposed vided by Applicant. Considerations relating to acquisition on competition, the financial and the convenience and needs of the communities in managerial resources and future prospects of the Bank’s service area lend some support for approval Applicant and the banks concerned, and the con­ of the application. It is the Board’s judgment that venience and needs of the communities to be consummation of the proposed acquisition would served. Upon such consideration, the Board finds be in the public interest, and that the application that: should be approved. Applicant, the third largest registered bank It is hereby ordered, for the reasons set forth holding company and banking organization in in the findings summarized above, that said ap­ Wisconsin, controls twelve banks with aggregate plication be and hereby is approved, provided that deposits of $558 million, representing 6.4 per cent the acquisition so approved shall not be consum­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 335 mated (a) before the thirtieth calendar day follow­ all those received have been considered by the ing the date of this Order or (b) later than three Board. months after the date of this Order, unless such The Board has considered the application in period is extended for good cause by the Board, the light of the factors set forth in section 3(c) or by the Federal Reserve Bank of Chicago pur­ of the Act, including the effect of the proposed suant to delegated authority. acquisition on competition, the financial and By order of the Board of Governors, March managerial resources and future prospects of the 11, 1971. Applicant and tfie banks concerned, and the con­ venience and ijeeds of the communities to be Voting for this action: Chairman Burns and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, served. Upon such consideration, the Board finds and Sherrill. that: (Signed) K enneth A. Kenyon, Applicant is the fourth largest banking organiza­ Deputy Secretary. tion and the second largest bank holding company in Virginia, controlling 13 banks with aggregate [seal] deposits of $582.1 million. This represents 8.0 per cent of total banking deposits in the State of VIRGINIA COMMONWEALTH Virginia. (Banking data are as of June 30, 1970, BANKSHARES, INC., adjusted to reflect holding company acquisitions RICHMOND, VIRGINIA and formations approved by the Board through In the matter of the application of Virginia February 28, 1971.) Since Bank is a proposed Commonwealth Bankshares, Inc., Richmond, new bank, consummation of the proposal would Virginia, for approval of acquisition of 100 per not increase concentration in any market. cent of the voting shares of The Bank of Virginia Bank would have a single office in the town of of Roanoke Valley, Vinton, Virginia, a proposed Vinton and would primarily serve that town, the new bank. eastern side of the city of Roanoke, and eastern Roanoke County. The three largest banks in the city of Roanoke each have branches in Vinton, Order Approving Acquisition of Bank with which Bank would be in competition. The Stock by Bank Holding Company relevant banking market is considered to approxi­ There has come before the Board of Governors, mate the cities of Roanoke and Salem and all of pursuant to section 3(a)(3) of the Bank Holding Roanoke County. Applicant has two bank sub­ Company Act of 1956 (12 U.S.C. 1842(a)(3)), sidiaries with offices in that market. One such and section 222.3(a) of Federal Reserve Regula­ subsidiary, The Bank of Virginia, headquartered tion Y (12 CFR 222.3(a)), the application of in Richmond, has a branch office in downtown Virginia Commonwealth Bankshares, Inc., Rich­ Roanoke. The other, The Bank of Virginia of mond, Viriginia (“Applicant”), a registered bank the Southwest, has four offices in Salem and its holding company, for the Board’s prior approval environs. These two subsidiaries of Applicant of the acquisition of 100 per cent of the voting together hold approximately 11.5 per cent of shares of The Bank of Virginia of Roanoke Valley, deposits in the relevant market. Under Virginia Vinton, Virginia, a proposed new bank. law, no present banking subsidiary of Applicant As required by section 3(b) of the Act, the may establish a branch in Bank’s primary service Board gave written notice of receipt of the ap­ area. plication to the Commissioner of Banking for the Based upon the foregoing, the Board concludes State of Virginia and requested his views and that consummation of the proposed acquisition recommendation. The Commissioner recom­ would not have an adverse effect on competition mended approval of the application. in any relevant area and might have a pro-com­ Notice of receipt of the application was pub­ petitive effect through the introduction of an lished in the Federal Register on January 14, 1971 additional banking alternative for residents of (36 Federal Register 575), providing an oppor­ eastern Roanoke County, presently the fastest tunity for interested persons to submit comments growing area in the relevant market. The banking and views with respect to the proposal. A copy of factors, as they relate to Applicant, its subsidiaries, the application was forwarded to the United States and Bank, and considerations relating to the con­ Department of Justice for its consideration. Time venience and needs of the communities to be for filing comments and views has expired and served, are regarded as consistent with approval Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

336 FEDERAL RESERVE BULLETIN □ APRIL 1971 of the application. It is the Board’s judgment that Superintendent recommended approval of the the proposed transaction would be in the public application. interest, and that the application should be ap­ Notice of receipt of the application was pub­ proved. lished in the Federal Register on January 26, 1971 It is hereby ordered, for the reasons set forth (36 Federal Register 1232), providing an oppor­ in the findings summarized above, that said ap­ tunity for interested persons to submit comments plication be and hereby is approved, provided that and views with respect to the proposal. A copy the action so approved shall not be consummated of the application was forwarded to the United (a) before the thirtieth calendar day following States Department of Justice for its consideration. the date of this Order, or (b) later than three Time for filing comments and views has expired months after the date of this Order; and provided and all those received have been considered by further that (c) The Bank of Virginia of Roanoke the Board. Valley shall be opened for business not later than The Board has considered the application in the six months after the date of this Order. The time light of the factors set forth in section 3(c) of periods described in (b) and (c) above may be the Act, including the effect of the proposed ac­ extended for good cause by the Board, or by the quisition on competition, the financial and man­ Federal Reserve Bank of Richmond pursuant to agerial resources and future prospects of the delegated authority. Applicant and the banks concerned, and the con­ By order of the Board of Governors, March venience and needs of the communities to be 15, 1971. served. Upon such consideration, the Board finds that: Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Maisel, Brimmer, and Applicant, the second largest bank holding com­ Sherrill. Absent and not voting: Chairman Burns. pany and the fourth largest banking organization (Signed) Kenneth A. Kenyon, in Ohio, controls 10 banks with aggregate deposits Deputy Secretary, of $1,038 million, representing 5.2 per cent of the commercial bank deposits in the State. (All [seal] banking data are as of June 30, 1970, and reflect holding company acquisitions approved by the SOCIETY CORPORATION, Board to date.) Upon acquisition of Bank ($32 CLEVELAND, OHIO million deposits), Applicant would control 5.3 In the matter of the application of Society Cor­ per cent of the commercial bank deposits in the poration, Cleveland, Ohio, for approval of acquisi­ State; its position relative to other banking organi­ tion of 80 per cent or more of the voting shares zations and holding companies would remain the of The Peoples Bank of Youngstown, Youngstown, same. Ohio. Bank is by a substantial margin the smallest of four banks headquartered in Youngstown and the sixth largest of 14 banks in the Youngstown- Order Approving Acquisition of Bank Warren SMSA, holding less than 4.1 per cent of Stock by Bank Holding Company total area deposits. The fifth largest bank in this There has come before the Board of Governors, market has control over almost three times as pursuant to section 3(a)(3) of the Bank Holding many deposits as Bank. Applicant’s closest sub­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) sidiary bank is located 33 miles from Youngstown and section 222.3(a) of Federal Reserve Regu­ and there is no meaningful competition between lation Y (12 CFR 222.3(a)), the application of Bank and that bank or any other of Applicant’s Society Corporation, Cleveland, Ohio (“Appli­ subsidiaries. Further, in light of the distances in­ cant”), a registered bank holding company, for volved and Ohio law restricting branching, it the Board’s prior approval of the acquisition of seems unlikely on the facts of record that any 80 per cent or more of the voting shares of The significant competition would develop in the fu­ Peoples Bank of Youngstown, Youngstown, Ohio ture. Based on the foregoing, the Board concludes (“Bank”). that consummation of the proposal would have As required by section 3(b) of the Act, the no adverse effect on competition in any relevant Board gave written notice of receipt of the ap­ area and might stimulate competition in the plication to the Ohio Superintendent of Banks Youngstown area. and requested his views and recommendation. The Considerations relating to the convenience and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 337 needs of the communities to be served lend some As required by section 3(b) of the Act, the weight toward approval of the application as Board gave written notice of receipt of the appli­ affiliation with Applicant would facilitate loan cation to the Massachusetts Commissioner of participations and would enable Bank to provide Banks and requested her views and recommenda­ international banking services. The banking fac­ tion. The Commissioner recommended approval tors are regarded as consistent with approval. It of the application. is the Board’s judgment that the proposed trans­ Notice of receipt of the application was pub­ action would be in the public interest, and that lished in the Federal Register on February 19, the application should be approved. 1971 (36 Federal Register 3221), providing an It is hereby ordered, for the reasons set forth opportunity for interested persons to submit com­ in the findings summarized above, that said ap­ ments and views with respect to the proposal. A plication be and hereby is approved, provided copy of the application was forwarded to the that the action so approved shall not be consum­ United States Department of Justice for its con­ mated (a) before the thirtieth calendar day follow­ sideration. Time for filing comments and views ing the date of this Order, or (b) later than three has expired and all those received have been months after the date of this Order, unless such considered by the Board. time be extended for good cause by the Board, The Board has considered the application in or by the Federal Reserve Bank of Cleveland the light of the factors set forth in section 3(c) pursuant to delegated authority. of the Act, including the effect of the proposed By order of the Board of Governors, March acquisition on competition, the financial and man­ 15, 1971. agerial resources and future prospects of the Ap­ plicant and the banks concerned, and the conve­ Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Maisel, Brimmer, nience and needs of the communities to be served, and Sherrill. Absent and not voting: Chairman Burns. and finds that: (Signed) Kenneth A. Kenyon, Applicant is a nonoperating corporation formed Deputy Secretary. for the purpose of acquiring Bank (deposits $8.6 million). As it has no present operations or sub­ [seal] sidiaries, consummation of the proposal would FIRST MASSACHUSETTS FINANCIAL eliminate neither existing nor potential competi­ CORPORATION, tion. On the contrary, the acquisition would, as WESTWOOD, MASSACHUSETTS noted below, have a pro-competitive effect by strengthening one of the three commercial banking In the matter of the application of First Massa­ alternatives in the City of Brockton. chusetts Financial Corporation, Westwood, Massa­ Considerations relating to the financial and chusetts, for approval of action to become a bank managerial resources of Bank lend strong support holding company through the acquisition of 51 toward approval of the application. Bank suffers per cent or more of the voting shares of Massa­ from a substantial capital weakness and, as part chusetts Bank and Trust Company, Brockton, of the proposal, and in an attempt to remedy this Massachusetts. situation, Applicant will immediately place new capital into Bank through the purchase of com­ Order Approving Action to Become a mon stock. Applicant further proposes to provide Bank Holding Company additional capital to Bank, if needed, at the con­ There has come before the Board of Governors, clusion of the first year after acquisition. Appli­ pursuant to section 3(a)(1) of the Bank Holding cant proposes managerial changes which should Company Act of 1956 (12 U.S.C. 1842(a)(1)), also serve to strengthen Bank and both changes and section 222.3(a) of Federal Reserve Regu­ should permit it to become a viable competitor lation Y (12 CFR 222.3(a)), an application by in Brockton. Both the Massachusetts Commis­ First Massachusetts Financial Corporation, West­ sioner of Banks and the Federal Deposit Insurance wood, Massachusetts, for the Board’s prior ap­ Corporation have strongly recommended approval proval of action whereby Applicant would become of the application, in both cases on the basis of a bank holding company through the acquisition considerations concerning the banking factors. of 51 per cent or more of the voting shares of While there is no evidence that substantial bank­ Massachusetts Bank and Trust Company, Brock­ ing needs of the Brockton community are going ton, Massachusetts. unserved, the proposal would benefit the conven­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 FEDERAL RESERVE BULLETIN □ APRIL 1971 ience and needs of the community by strengthening posal is therefore treated as one to acquire shares a convenient local source of banking services. Con­ of The Citizens National Bank of Wooster. siderations relating to the convenience and needs of As required by section 3(b) of the Act, the the communities to be served thus lend additional Board gave written notice of receipt of the appli­ weight toward approval of the application. It is cation to the Comptroller of the Currency and the Board’s judgment that the proposed transac­ requested his views and recommendation. The tion would be in the public interest, and that the Comptroller offered no objection to approval of application should be approved. the application. It is hereby ordered, for the reasons set forth Notice of receipt of the application was pub­ above, that said application be and hereby is ap­ lished in the Federal Register on January 30, proved, provided that the acquisition so approved 1971 (36 Federal Register 1495) providing an shall not be consummated (a) before the thirtieth opportunity for interested persons to submit com­ calendar day following the date of this Order or ments and views with respect to the proposed (b) later than three months after the date of this transaction. A copy of the application was for­ Order, unless such period is extended for good warded to the United States Department of Jus­ cause by the Board, or by the Federal Reserve tice for its consideration. Time for filing com­ Bank of Boston pursuant to delegated authority. ments and views has expired and all those received By order of the Board of Governors, March have been considered by the Board. 12, 1971. The Board has considered the application in Voting for this action: Vice Chairman Robertson the light of the factors set forth in section 3(c) and Governors Mitchell, Daane, Maisel, Brimmer, of the Act, including the effect of the proposed and Sherrill. Absent and not voting: Chairman Burns. acquisition on competition, the financial and man­ agerial resources and future prospects of the (Signed) Kenneth A. Kenyon, Applicant and the banks concerned, and the con­ Deputy Secretary. venience and needs of the communities to be [seal] served. Upon such consideration, the Board finds that: FIRST BANC GROUP OF OHIO, INC., Applicant, the eighth largest banking organiza­ COLUMBUS, OHIO tion in Ohio, controls seven banks with deposits In the matter of the application of First Banc of approximately $584 million, representing less Group of Ohio, Inc., Columbus, Ohio, for ap­ than 3 per cent of total commercial bank deposits proval of acquisition of 100 per cent of the voting in the State. (All banking data are as of June 30, shares (less directors’ qualifying shares) of the 1970, adjusted to reflect holding company forma­ successor by merger to The Citizens National tions and acquisitions approved by the Board to Bank of Wooster, Wooster, Ohio. date.) The acquisition of Bank, with deposits of $19.3 million, would increase Applicant’s control Order Approving Acquisition of Bank of deposits in the State less than 0.1 per cent. Stock by Bank Holding Company Bank is located 60 miles south-southwest of Cleveland, in Wayne County, and is the fourth There has come before the Board of Governors, largest bank in the County controlling about 14 pursuant to section 3(a)(3) of the Bank Holding per cent of its deposits. Applicant’s nearest sub­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) sidiary to Bank is located 32 miles to the west and section 222.3(a) of Federal Reserve Regu­ and one county, served by 12 offices of five banks, lation Y (12 CFR 222.3(a)), an application by intervenes between the two. It appears that no First Banc Group of Ohio, Inc., Columbus, Ohio present competition exists between any of Appli­ (“Applicant”), a registered bank holding com­ cant’s subsidiaries and Bank. On the facts of pany, for the Board’s prior approval of the ac­ record and in light of Ohio’s branching restric­ quisition of 100 per cent of the voting shares (less directors’ qualifying shares) of a new national tions, it appears unlikely that consummation of bank into which would be merged The Citizens the proposal herein would foreclose potential com­ National Bank of Wooster, Wooster, Ohio petition. Based upon the record, the Board con­ (“Bank”). The new national bank has signifi­ cludes that consummation of the proposed acquisi­ cance only as a means of acquiring all of the tion would have no significant adverse effect on shares of the bank to be merged into it; the pro­ competition in any relevant area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 339 The banking factors as they pertain to Applicant directors’ qualifying shares) of Exchange Bank of and Bank are consistent with approval of the North Winter Haven, Winter Haven, Florida application. Considerations relating to the con­ (“Bank”), a proposed new bank. venience and needs of banking customers in As required by section 3(b) of the Act, the Wayne County lend some weight in favor of ap­ Board gave written notice of receipt of the ap­ proval of the application. Although the needs of plication to the Commissioner of Banking of the those customers are presently being served, con­ State of Florida, and requested his views and rec­ summation of the acquisition will enable Bank to ommendation. The Commissioner recommended offer an additional competitive alternative for approval of the application. such services as trust and credit card services. It Notice of receipt of the application was pub­ is the Board’s judgment that the proposed trans­ lished in the Federal Register on January 5, 1971 action would be in the public interest and should (36 Federal Register 129), providing an oppor­ be approved. tunity for interested persons to submit comments It is hereby ordered, for the reasons set forth and views with respect to the proposed transac­ in the findings summarized above, that said appli­ tion. A copy of the application was forwarded to cation be and hereby is approved, provided that the United States Department of Justice for its the action so approved shall not be consummated consideration. The time for filing comments and (a) before the thirtieth calendar day following views has expired and all those received have the date of this Order or (b) later than three been considered by the Board. months after the date of this Order, unless such The Board has considered the application in time be extended for good cause by the Board, the light of the factors set forth in section 3(c) or by the Federal Reserve Bank of Cleveland of the Act including the effect of the proposed pursuant to delegated authority. acquisition on competition, the financial and man­ By order of the Board of Governors, March agerial resources of the Applicant and the banks 17, 1971. concerned, and the convenience and needs of the communities to be served and finds that: Voting for this action: Chairman Burns and Gov­ ernors Robertson, Mitchell, Daane, Maisel, Brimmer, Applicant presently controls five banks, which and Sherrill. hold deposits of approximately $282 million, rep­ (Signed) Kenneth A. Kenyon, resenting 2.3 per cent of total deposits held by Deputy Secretary. Florida’s commercial banks, and is the State’s ninth largest banking organization and bank hold­ [seal] ing company. (All banking data are as of June 30, 1970, adjusted to reflect holding company EXCHANGE BANCORPORATION, INC., formations and acquisitions approved by the TAMPA, FLORIDA Board through February 28, 1971.) Applicant’s acquisition of the proposed new bank would have In the matter of the application of Exchange no immediate effect on concentration of banking Bancorporation, Inc., Tampa, Florida, for ap­ resources. proval of acquisition of 100 per cent of the voting shares (less directors' qualifying shares) of Ex­ Applicant’s closest subsidiaries to Bank are change Bank of North Winter Haven, Winter Exchange National Bank of Winter Haven ($50 Haven, Florida, a proposed new bank. million deposits) located two miles south of Bank’s proposed location and Bank of Central Florida ($7 million deposits) located in Haines Order Approving Acquisition of Bank City, 11 miles northeast of Bank’s proposed site. Stock by Bank Holding Company Two of the three banks with which Bank would There has come before the Board of Governors, compete are subsidiaries of bank holding com­ pursuant to section 3(a)(3) of the Bank Holding panies both of which are larger than Applicant. Company Act of 1956 (12 U.S.C. 1842(a)(3)) It appears that consummation of this proposal and section 222.3(a) of Federal Reserve Regu­ would serve to stimulate additional competition; lation Y (12 CFR 222.3(a)), an application by existing competition would not be affected and Exchange Bancorporation, Inc., Tampa, Florida no significant potential competition would be fore­ (“Applicant”), a registered bank holding com­ closed; nor would there be undue adverse effects pany, for the Board’s prior approval of the ac­ on any competing banks. quisition of 100 per cent of the voting shares (less The banking factors with respect to Applicant, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 FEDERAL RESERVE BULLETIN □ APRIL 1971 its subsidiaries and Bank are generally satisfactory. Citizens Banking Company, Perrysburg, Ohio Although present banking needs are being served, (“Citizens Bank”). the establishment of Bank would provide more As required by section 3(b) of the Act, the convenient banking services to customers in the Board gave written notice of receipt of the ap­ North Winter Haven area. Considerations relating plication to the Superintendent of Banks for the to the convenience and needs of the communities State of Ohio and requested his views and recom­ involved lend some weight toward approval of the mendation. The Superintendent had no objection application. It is the Board’s judgment that the to approval of the application. proposed transaction would be in the public in­ Notice of receipt of the application was pub­ terest and that the application should be approved. lished in the Federal Register on February 9, 1971 It is hereby ordered, for the reasons set forth (36 Federal Register 2643), providing an oppor­ in the findings summarized above, that said ap­ tunity for interested persons to submit comments plication be and hereby is approved, provided and views with respect to the proposal. A copy that the acquisition so approved shall not be con­ of the application was forwarded to the United summated (a) before the thirtieth calendar day States Department of Justice for its consideration. following the date of this Order or (b) later than Time for filing comments and views has expired three months after the date of this Order, and and all those received have been considered by the provided further that (c) Exchange Bank of North Board. Winter Haven shall be open for business not later The Board has considered the application in than six months after the date of this Order. The the light of the factors set forth in section 3(c) periods described in (b) and (c) hereof may be of the Act, including the effect of the proposed extended for good cause by the Board or by the acquisition on competition, the financial and man­ Federal Reserve Bank of Atlanta pursuant to agerial resources and future prospects of the delegated authority. Applicant and the banks concerned, and the con­ By order of the Board of Governors, March venience and needs of the communities to be 30, 1971. served. Upon such consideration, the Board finds that: Voting for this action: Chairman Burns and Gov­ ernors Robertson, Mitchell, Daane, Brimmer, and Applicant is the second largest banking organi­ Sherrill. Absent and not voting: Governor Maisel. zation and the largest bank holding company in (Signed) Kenneth A. Kenyon, Ohio, controlling 27 banks with deposits totaling Deputy Secretary. $1.4 billion, representing 6.9 per cent of deposits held by all banking organizations in the State. [seal] (All banking data are as of June 30, 1970, ad­ justed to reflect holding company formations and BANCOHIO CORPORATION, acquisitions approved by the Board through Feb­ COLUMBUS, OHIO ruary 28, 1971.) Applicant’s acquisition of Bank, In the matter of the application of BancOhio with deposits of $12 million, would increase its Corporation, Columbus, Ohio, for approval of share of deposits in the State by an insignificant the acquisition of 80 per cent or more of the voting amount. shares of The Citizens Banking Company, Perrys- Citizens Bank operates two offices in and pri­ burg, Ohio. marily serves the city of Perrysburg, which is a residential suburb 10 miles south of Toledo. It is the larger of two banks in Perrysburg (the Order Approving Acquisition of Bank smaller of which is a branch of a $42 million bank Stock by Bank Holding Company headquartered fifteen miles away), the fourth There has come before the Board of Governors, largest bank in Wood County and the ninth larg­ pursuant to section 3(a)(3) of the Bank Holding est of eleven banks in the Toledo area with 1.3 Company Act of 1956 (12 U.S.C. 1842(a)(3)) per cent of area deposits. Bank of Wood County, and section 222.3(a) of Federal Reserve Regu­ a subsidiary of the third largest bank holding lation Y (12 CFR 222.3(a)), the application of company in Ohio, holds deposits of $42 million BancOhio Corporation, Columbus, Ohio (“Appli­ and is the largest bank in Wood County. Four cant”), a registered bank holding company, for of the largest banks in the Toledo area are lo­ the Board’s prior approval of the acquisition of cated in Toledo. The nearest subsidiaries of Appli­ 80 per cent or more of the voting shares of The cant to Bank are 33 miles southwest and 47 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 341 miles southeast. It appears that none of Appli­ of acquisition of 80 per cent or more of the voting cant’s subsidiaries competes with Bank in any shares of Farmers and Merchants Bank, Weyaumeaningful degree and considering the limitations wega, Wisconsin. of Ohio branching law and other facts of record, development of such competition appears un­ Order Approving Acquisition of Bank likely. Based on the foregoing, the Board con­ Stock by Bank Holding Company cludes that consummation of the proposed ac­ quisition would not adversely affect competition There has come before the Board of Governors, in any relevant area, but should enable Bank to pursuant to section 3(a)(3) of the Bank Holding compete more aggressively with its much larger Company Act of 1956 (12 U.S.C. 1842(a)(3)) competitors without having any adverse effects and section 222.3(a) of Federal Reserve Regula­ on the smaller banks located in the Toledo area tion Y (12 CFR 222.3 (a)), an application by Val­ with which it competes. ley Bancorporation, Appleton, Wisconsin, a regis­ Considerations relating to financial and man­ tered bank holding company, for the Board’s prior agerial resources and prospects, as they relate to approval of the acquisition of 80 per cent or more Applicant, its subsidiaries and Bank, are regarded of the voting shares of Farmers and Merchants as consistant with approval of the application. Bank, Weyauwega, Wisconsin. Perrysburg is a growing residential area located As required by section 3(b) of the Act, the less than fifteen minutes from downtown Toledo. Board gave written notice of receipt of the ap­ Although all services are available in Toledo, plication to the Wisconsin Commissioner of Bank­ affiliation with Applicant will enable Bank to ing, and requested his views and recommendation. offer trust, international banking and other ser­ The Commissioner did not object to approval of vices in the community and to expand Bank’s loan the application. portfolio. Thus considerations relating to con­ Notice of receipt of the application was pub­ venience and needs of the communities involved lished in the Federal Register on November 7, lend support to approval of the application. It is 1970 (35 Federal Register 17225), providing an the Board’s judgment that consummation of the opportunity for interested persons to submit com­ proposed acquisition would be in the public in­ ments and views with respect to the proposal. A terest and that the application should be approved. copy of the application was forwarded to the It is hereby ordered, for the reasons set forth United States Department of Justice for its con­ in the findings summarized above, that said ap­ sideration. The time for filing comments and views plication be and hereby is approved, provided that has expired and all those received have been con­ the action so approved shall not be consummated sidered by the Board. (a) before the thirtieth calendar day following It is hereby ordered, for the reasons set forth the date of this Order or (b) later than three in the Board’s Statement of this date, that said months after the date of this Order, unless such application be and hereby is approved, provided time be extended for good cause by the Board, or that the acquisition so approved shall not be con­ by the Federal Reserve Bank of Cleveland pursu­ summated (a) before the thirtieth calendar day ant to delegated authority. By order of the Board of Governors, March following the date of this Order or (b) later than 30, 1971. three months after the date of this Order, unless such period is extended for good cause by the Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, Board, or by the Federal Reserve Bank of Chicago and Sherrill. Absent and not voting: Governor pursuant to delegated authority. Maisel. By order of the Board of Governors, March 30, (Signed) Kenneth A. Kenyon, 1971. Deputy Secretary. Voting for this action: Chairman Burns and Gov­ [seal] ernors Mitchell, Daane, and Sherrill. Voting against this action: Governors Robertson, Maisel, and Brimmer. VALLEY BANCORPORATION, APPLETON, WISCONSIN (Signed) Kenneth A. Kenyon, Deputy Secretary. In the matter of the application of Valley Bancorporation, Appleton, Wisconsin, for approval [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 FEDERAL RESERVE BULLETIN □ APRIL 1971 Statement F & M Bank ($7 million of deposits) is the only bank in the city of Weyauwega, which is about Valley Bancorporation, Appleton, Wisconsin 31 miles west of Appleton and is in the south­ (“Applicant”), a registered bank holding com­ eastern portion of Waupaca County. F & M Bank, pany, has applied to the Board of Governors, pur­ with about 15 per cent of market deposits, is the suant to section 3(a)(3) of the Bank Holding fourth smallest of the seven banking organizations Company Act of 1956 (12U.S.C. 1842(a)(3)), in its market area, which encompasses the southern for prior approval of the acquisition of 80 per half of Waupaca County and extends eight miles cent or more of the voting shares of Farmers and south into northern portions of Waushara and Merchants Bank, Weyauwega, Wisconsin (“F & Winnebago Counties. The three larger banking MBank”). organizations in the market together control about Views and recommendation of supervisory 60 per cent of the deposits in the market. Upon authority. As required by section 3(b) of the Act, consummation of the proposal, six alternative the Board gave written notice of receipt of the banking organizations will remain in the market, application to the Wisconsin Commissioner of and Applicant will not be represented in the princi­ Banking, and requested his views and recom­ pal city in the market. mendation. The Commissioner did not object to The banking office of a subsidiary of Applicant approval of the application. located nearest to F & M Bank is in Fremont, Statutory considerations. Section 3(c) of the about 7 miles east of Weyauwega. The Fremont Act provides that the Board shall not approve office ($4 million of deposits) is a small branch an acquisition that would result in a monopoly or of Applicant’s lead bank, which is headquartered would be in furtherance of any combination or in Appleton. The Fremont office has only about conspiracy to monopolize or attempt to monopolize 8 per cent of market deposits, making it the second the business of banking in any part of the United smallest banking organization in the market. States. Nor may the Board approve a proposed Weyauwega has a population of about 1,300, acquisition, the effect of which, in any section of and Fremont has only 600; the intervening area the country, may be substantially to lessen com­ is also sparsely populated. The two cities are petition, or to tend to create a monopoly, or which separated by the Wolf River and its marshes, and in any other manner would be in restraint of trade, the river is bridged at only one point in the area. unless the Board finds that the anticompetitive This natural barrier prevents residents from having effects of the proposed transaction are clearly out­ unrestricted access to the two banking offices in weighed in the public interest by the effect of the the area. transaction in meeting the convenience and needs There is some competition between the Fremont of the communities to be served. In each case, the office and F & M Bank, but this competition is not Board is required to take into consideration the regarded as substantial. Because of the sparse financial and managerial resources and future population of the area and the natural barrier prospects of the bank holding company and the between the banks, the proximity of the two offices banks concerned, and the convenience and needs has not resulted in the kind of direct competition of the communities to be served. that might, perhaps, be expected to be the case Competitive effect of the proposed transaction. with nearby banking alternatives. F & M has Applicant is the seventh largest banking organiza­ sought to expand its service area principally in a tion and seventh largest bank holding company in north-south direction. Wisconsin by virtue of its control of nine banks Nor is there a likelihood that consummation of with aggregate deposits of approximately $116 the proposal would foreclose significant potential million, representing 1.3 per cent of the com­ competition. Under the branching laws of Wis­ mercial deposits in the State.1 Consummation of consin, the Wolf River is virtually at the western the proposal would not significantly affect con­ perimeter of the permissible branching area for centration of deposits on a State-wide basis nor banks headquartered in Appleton. Applicant’s lead bank already has four offices in a small area would it affect Applicant’s relative position among on the eastern side of the Wolf River. The eco­ the largest banking organizations in the State. nomic activity of the area appears to be insufficient to justify the opening of new offices in the Fre­ 1 All banking data are as of June 30, 1970, and reflect mont area, and State law prevents further expan­ holding company acquisitions approved by the Board sion westward. through February 28, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 343 On the basis of the foregoing, the Board con­ Dissenting Statement of Governors cludes that consummation of the proposed acquisi­ Robertson, Maisel, and Brimmer tion would not result in a monopoly or be in In our opinion, consummation of the proposal furtherance of any combination, conspiracy, or at­ will have an adverse competitive effect which is tempt to monopolize the business of banking in not outweighed by considerations relating to the any area. While the acquisition would eliminate convenience and needs of the Weyauwega-Fresome present competition, it does not appear that mont community or by any other considerations. such competition is significant. The Board there­ fore further concludes that the proposal would There can be no doubt that existing competition will be eliminated by consummation of the pro­ not substantially lessen competition, tend to create posal. An office of Applicant’s lead bank is lo­ a monopoly, or restrain trade in any section of the cated in Fremont, and this banking office is the country. nearest competitor of F & M Bank, which is lo­ Financial and managerial resources and future cated in Weyauwega. The Fremont office and prospects. Applicant’s financial condition is prin­ F & M Bank are on the same road and are located cipally related to that of its subsidiaries. It has only seven miles apart. There are no other banks recently added capital at two of its subsidiary in either Fremont or Weyauwega and none in the banks and plans to strengthen the condition of a intervening area. The two principal competitors third. In light of Applicant’s plans and its recent of F & M Bank are located in Waupaca, which actions to implement those plans, the financial is located in exactly the opposite direction from conditions of Applicant and its subsidiaries are re­ Weyauwega as compared to Fremont. garded as satisfactory. Their managements are The majority minimizes the significance of the considered competent, and their prospects appear proximity of the Fremont office to F & M Bank favorable. The financial condition, management by referring to the natural barrier presented by the and prospects of F & M Bank are regarded as Wolf River. The fact is that the two banking satisfactory. Overall, the banking factors are con­ offices are located in the same trade area. All that sidered consistent with approval of the application. the Wolf River with its limited bridges does is to Convenience and needs of the communities to increase slightly for a few persons the distances to be served. The needs of the residents of the area F & M Bank relative to the distances to the Fre­ are apparently being adequately met at the present mont office. At the present time, many residents time. However, the residents should reap benefits and small businesses in the Weyauwega-Fremont as a result of consummation of the proposal. area have a convenient choice between two com­ peting offices. The Board’s action today will lead Through F & M Bank’s affiliation with Applicant, to the elimination of that choice for those resi­ customers of F & M Bank will be able to take dents. advantage of a larger lending limit. In addition, We think the statistics compel the conclusion the trust services offered by the Fremont office of that the Fremont office and F & M Bank are direct Applicant’s system will be made more conveniently and substantial competitors. The Fremont office available to customers of F & M Bank. It also obtains about 14 per cent of its deposit business appears likely that the economies of scale that Ap­ from the service area of F & M Bank, and F & M plicant should be able to effect through consum­ Bank obtains about 6 per cent of its deposit busi­ mation of the proposal will result in new, ex­ ness and 8 per cent of its loan business from the panded and improved services to be offered at service area of the Fremont office. The amount F & M Bank. Such services could not ordinarily of business which F & M Bank takes away from be offered by a small unaffiliated bank. Thus, it the Fremont office is substantial. The deposits that appears that considerations relating to the con­ F & M Bank derives in the service area of the Fre­ venience and needs of the communities involved mont office amount to 14 per cent of the deposits lend some support for approval of the application. that the Fremont office derives in its own service Summary and conclusion. On the basis of all area. The comparable statistic for loans is a the relevant facts contained in the record, and in striking 33 per cent. the light of the factors set forth in section 3(c) Furthermore, the number of customers in the of the Act, it is the Board’s judgment that the pro­ service area of each bank who have taken their posed transaction would be in the public interest business to the other bank assumes even greater and that the application should be approved. significance when we consider the well-known fact Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 FEDERAL RESERVE BULLETIN □ APRIL 1971 that the present customers of each bank are able services through the Fremont office. We do not to gain improvements in terms and services be­ find a significant need for either of these alleged cause each bank fears that its remaining customers benefits. If such needs do arise, F & M could, as may also switch to the other bank if improvements it has in the past, utilize loan participations and the are not made. trust services of its correspondent banks. Further­ By looking to the number of competitors left in more, quite obviously the trust services and larger the market and their relative sizes, the majority lending limit of the Fremont office are now avail­ finds that there will be no substantial diminution able to Weyauwega-Fremont residents. We do not of existing competition. We think that, when we see how these services will be made more con­ are presented with a proposal whereby Applicant veniently available by consummation of this pro­ seeks to acquire the competitor nearest to an office posal. of one of Applicant’s subsidiaries, it is far better We believe that it is not in the public interest for to emphasize the competitive situation in the im­ us to approve a proposal that would have the effect mediate area than to look broadly to the market. of serving somewhat better the occasional needs of However, even when we evaluate the effect of this a few residents of the community at the expense of proposal at the market level, we find that the depriving all the residents of a clear choice be­ statistics strongly support the conclusion that the tween two competing banking offices. The proposal effect of the proposal is substantially anti-competi­ before us would have that effect. tive. At the present time, Applicant has about We would, therefore, deny the application. 8 per cent of market deposits, making it the sec­ ond smallest banking organization in the market. AMERICAN BANKSHARES CORPORATION Upon consummation of the proposal, Applicant’s MILWAUKEE, WISCONSIN share of the market will be tripled, making it the largest banking organization in the market; and a In the matter of the application of American substantial banking alternative will be eliminated. Bankshares Corporation, Milwaukee, Wisconsin, Indeed, under an even broader view of the rele­ for approval of acquisition of 80 per cent or more vant area, we find that consummation of the pro­ of the voting shares of Menomonee Falls Bank, posal will have significant anti-competitive effects. Menomonee Falls, Wisconsin. Applicant’s lead bank is headquartered in Apple­ ton, the nearest large city to Weyauwega. Offices Order Approving Acquisition of Bank of that bank have been established between Apple­ Stock by Bank Holding Company ton and Weyauwega; four of these are within 25 miles of Weyauwega. Consummation of the pro­ There has come before the Board of Governors, posal will facilitate Applicant’s expansion west­ pursuant to section 3(a)(3) of the Bank Holding ward from Appleton and will further entrench Company Act of 1956 (12 U.S.C. 1842(a)(3)) Applicant as the dominant banking organization and section 222.3(a) of Federal Reserve Regula­ in that area. tion Y (12 CFR 222.3(a)), an application by We find no benefits to the Weyauwega-Fremont American Bankshares Corporation, Milwaukee, community that could possibly outweigh the seri­ Wisconsin (“Applicant”), a registered bank hold­ ous anti-competitive effect of the proposal. Weyau­ ing company, for the Board’s prior approval ot wega is a very small city (population 1,352). The the acquisition of 80 per cent or more of the voting population in the service area of F & M Bank is shares of Menomonee Falls Bank, Menomonee estimated to be about 5,000, and the area is char­ Falls, Wisconsin (“Bank”). acterized by slow growth. The city of Weyauwega As required by section 3(b) of the Act, the has little industry; its retail business is limited and Board gave written notice of receipt of the applica­ based largely upon the agricultural population tion to the Commissioner of Banking of the State around it. We find no evidence that the residents of Wisconsin and requested his views and recom­ in the area need a wider range of banking services mendation. The Commissioner offered no objec­ or that the needs they do have are not being ade­ tion to approval of the application. quately met. Notice of receipt of the application was pub­ The principal benefits to the community cited lished in the Federal Register on December 25, by Applicant to accrue as a result of consumma­ 1970 (35 Federal Register 19644), providing an tion of the proposal are the larger lending limit that opportunity for interested persons to submit com­ F & M Bank can offer and the furnishing of trust ments and views with respect to the proposed Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 345 transaction. A copy of the application was for­ ened through special services provided by Appli­ warded to the United States Department of Justice cant. Considerations relating to the convenience for its consideration. The time for filing comments and needs of the communities in Bank’s service and views has expired and all those received have area thus lend support for approval of the applica­ been considered by the Board. tion. It is the Board’s judgment that consumma­ The Board has considered the application in the tion of the proposed acquisition would be in the light of the factors set forth in section 3(c) of the public interest, and that the application should be Act, including the effect of the proposed acquisi­ approved. tion on competition, the financial and managerial It is hereby ordered, for the reasons set forth resources and future prospects of the Applicant in the findings summarized above, that said appli­ and the banks concerned, and the convenience and cation be and hereby is approved, provided that needs of the communities to be served. Upon such the acquisition so approved shall not be consum­ consideration, the Board finds that: mated (a) before the thirtieth calendar day follow­ Applicant, the sixth largest banking organization ing the date of this Order or (b) later than three in Wisconsin, controls three banks with aggregate months after the date of this Order, unless such deposits of $126 million, representing 1.4 per cent period is extended for good cause by the Board, or of the State’s total deposits. (All banking data are by the Federal Reserve Bank of Chicago pursuant as of June 30, 1970, adjusted to reflect bank hold­ to delegated authority. ing company formations and acquisitions approved By order of the Board of Governors, April 1, by the Board to date.) Upon acquisition of Bank 1971. ($8.9 million in deposits), Applicant would in­ crease its share of State-wide deposits by only Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Brimmer, and Sher­ 0.1 per cent, leaving unchanged its present rank­ rill. Absent and not voting: Chairman Burns and ing among banking organizations in the State. Governor Maisel. Bank is located in the town of Menomonee Falls (Signed) Kenneth A. Kenyon, which is approximately 15 miles northwest of Deputy Secretary. downtown Milwaukee. The only other bank in Menomonee Falls is almost four times as large as [seal] Bank. The closest banking office of any subsidiary of Applicant to Bank is situated about eight miles THE FIRST NATIONAL BANCORPORA­ away within the city limits of Milwaukee. Though TION, INC., there is some existing competition between this DENVER, COLORADO subsidiary of Applicant and Bank, it is of a small magnitude. Applicant has 3.9 per cent of de­ In the matter of the application of The First posits in a market approximated by Milwaukee National Bancorporation, Inc., Denver, Colorado, County and the eastern portion of Waukesha for approval of acquisition of 80 per cent or more County while Bank has only 0.3 per cent of de­ of the voting shares of The Exchange National posits in this area. Based upon the record before Bank of Colorado Springs, Colorado Springs, Colo­ it, the Board concludes that consummation of the rado. proposed acquisition would not have significant adverse effects on competition in any relevant Order Approving Acquisition of Bank area. Stock by Bank Holding Company Banking factors as they relate to Applicant are generally satisfactory and are consistent with ap­ There has come before the Board of Governors, proval of the application and in the case of Bank pursuant to section 3(a)(3) of the Bank Holding weigh in favor of approval due to the likelihood Company Act of 1956 (12 U.S.C. 1842(a)(3)) of strengthened management. and section 222.3(a) of Federal Reserve Regula­ Bank’s affiliation with Applicant appears to offer tion Y (12 CFR 222.3(a)), an application by the prospect that expanded or improved banking The First National Bancorporation, Inc., Denver, services, such as a more varied loan policy, will Colorado, a registered bank holding company, for be provided by Bank to customers in Bank’s service the Board’s prior approval of the acquisition of area, and that Bank’s operations will be strength­ 80 per cent or more of the voting shares of The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 FEDERAL RESERVE BULLETIN □ APRIL 1971 Exchange National Bank of Colorado Springs, views and recommendation thereon. The Comp­ Colorado Springs, Colorado. troller indicated his view that the proposed acquisi­ As required by section 3(b) of the Act, the tion would have no adverse competitive effect. Board gave written notice of receipt of the appli­ Statutory considerations. Section 3(c) of the cation to the Comptroller of the Currency, and Act provides that the Board shall not approve an requested his views and recommendation. The acquisition that would result in a monopoly or Comptroller indicated his view that the proposed would be in furtherance of any combination or acquisition would have no adverse competitive conspiracy to monopolize or to attempt to monop­ effect. olize the business of banking in any part of the Notice of receipt of the application was pub­ United States. Nor may the Board approve a pro­ lished in the Federal Register on July 25, 1970 (35 posed acquisition the effect of which, in any sec­ Federal Register 12041), providing an opportunity tion of the country, may be substantially to lessen for interested persons to submit comments and competition, or to tend to create a monopoly, or views with respect to the proposal. A copy of the which in any other manner would be in restraint application was forwarded to the United States of trade, unless the Board finds that the anticom­ Department of Justice for its consideration. Time petitive effects of the proposed transaction are for filing comments and views has expired, and all clearly outweighed in the public interest by the those received have been considered by the Board. probable effect of the transaction in meeting the It is hereby ordered, for the reasons set convenience and needs of the communities to be forth in the Board’s Statement of this date, that served. In each case, the Board is required to take said application be and hereby is approved, pro­ into consideration the financial and managerial vided that the action so approved shall not be con­ resources and future prospects of the bank hold­ summated (a) before the thirtieth calendar day ing company and the banks concerned, and the following the date of this Order or (b) later than convenience and needs of the communities to be three months after the date of this Order, unless served. such time shall be extended for good cause by the Competitive effect of proposed transaction. Ap­ Board, or by the Federal Reserve Bank of Kansas plicant, the second largest banking organization City pursuant to delegated authority. and bank holding company in Colorado, controls By order of the Board of Governors, April 1, six banks with deposits of $553 million, represent­ 1971. ing 14 per cent of all commercial bank deposits in Voting for this action: Chairman Burns and Colorado.1 It became a bank holding company in Governors Mitchell, Daane, and Sherrill. Voting against this action: Governors Robertson, Maisel, and 1968 through the acquisition of First National Brimmer. Bank of Denver (“Denver Bank”), and three other banks in the Denver area. On acquisition of Bank (Signed) Kenneth A. Kenyon, Deputy Secretary. (deposits of $52 million) Applicant would in­ crease its control of State deposits by slightly more [seal] than 1 per cent and would become, by a slight margin, Colorado’s largest banking organization Statement and bank holding company. Bank is the second largest of 12 banks located in The First National Bancorporation, Inc., Den­ the City of Colorado Springs, El Paso County, ver, Colorado (“Applicant”), a registered bank Colorado. The county is served by 18 banks repre­ holding company, has applied to the Board of senting 15 banking organizations: Governors, pursuant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a) (3)), for prior approval of the acquisition 1 All banking data are as of June 30, 1970, adjusted to reflect holding company formations and acquisitions of 80 per cent or more of the voting shares of The approved by the Board through January 31, 1971. In­ Exchange National Bank of Colorado Springs, cluded among Applicant’s subsidiaries are the First Na­ Colorado Springs, Colorado (“Bank”). tional Bank of Greeley, Greeley, Colorado ($39 million deposits) and The Security State Bank of Sterling, Ster­ Views and recommendation of supervisory ling, Colorado ($21 million deposits), which were ap­ authority. As required by section 3(b) of the Act, proved by the Board on June 9, 1970, and November 3, the Board notified the Comptroller of the Currency 1970, respectively. Consummation of these acquisitions has been delayed by litigation instituted by the United of receipt of the application and requested his States Department of Justice. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 347 COLORADO SPRINGS BANKING MARKET Total Deposits Percentage of Banking Organizations June 30. 1970 Market Share Affiliated Bankshares of Colorado, Inc. 98.2 34 (holding company approved 1969) First National Bank of Colorado Springs 90.5 31 Fort Carson National Bank 4.4 2 Bank of Manitou 3.3 1 Farrar Group 66.9 23 The Exchange N.B. of Colorado Springs 1 52.3 18 Colorado Commercial Bank 14.6 5 Colorado Springs National Bank and affiliate 45.8 16 Colorado Springs National Bank 2 38.4 13 The East Colorado Springs National Bank 7.4 2 Central Colorado Bancorp, Inc. 31.2 11 (holding company approved 1970) The Central Colorado Bank 25.1 The Academy Boulevard Bank 6.1 American Heritage Bank and Trust Company 12.7 4 The Pikes Peak N.B. of Colorado Springs 7.5 3 Air Academy National Bank 7.0 2 All others (6) 23.5 __8_ 292.8 1013 1 Subject of present application. 2 While acquisition by United Banks of Colorado, Inc. has been approved, consum­ mation has been delayed by litigation instituted by the United States Department of Justice. 3 Percentages do not add to 100 due to rounding. Thus, although Bank is the county’s second largest application would be to end that affiliation and bank with 18 per cent of deposits, it is slightly create an additional competitor in the market. more than one-half as large as the county’s largest Another affiliate in the same chain banking organi­ banking organization which controls approxi­ zation is The First National Bank of Pueblo ($54 mately 34 per cent of county deposits. It should million deposits), the largest bank in Pueblo, Colo­ be noted that the 12 smallest banks are retail in­ rado.2 The chain of which Bank is now a part stitutions which have successfully served local would thus continue to have representation in two markets in competition with the larger banks in major Colorado markets, and would continue to the county. The last two banks to be chartered— be a significant competitive factor in both. in 1969 and 1966—have deposits of $2 million and In approving the present application, the Board $6 million, respectively. It appears that consum­ has approved the entry of four holding companies mation of the acquisition would not unduly affect into the Colorado Springs market. Two of these competition by these smaller banking institutions. approvals severed pre-existing “chain” relation­ The closest banking subsidiary of Applicant to ships and in effect added two new competitors to Bank is First National Bank of South Glenn (de­ the Colorado Springs area. While the entry of posits $6 million) which is located 57 miles north additional holding companies into the area is a of Colorado Springs and does not compete to any matter of conjecture, there remain several un­ significant extent with Bank. Applicant’s largest affiliated banks which, in appropriate circum­ subsidiary, First National Bank of Denver (de­ stances, could be acquired by existing or newly posits $468 million), which is located 71 miles formed holding companies. north of Colorado Springs, does compete with The introduction of Applicant as a competitive Bank to a limited extent, primarily through a mort­ force in Colorado Springs and El Paso County gage loan production office located in Colorado should have the effect of reducing the market Springs. However that bank made only 2 per cent dominance of the area’s largest banking organiza­ of the mortgage loans in Colorado Springs in tion. While the desirability of strengthening com­ 1969. It appears from the facts of record that petition between the largest and second largest consummation of the transaction would not elimi­ organizations in a market is not such as would nate substantial existing competition between any ordinarily justify an acquisition which eliminates of Applicant’s subsidiaries and Bank. direct and significant competition, it is, we believe, Approval of the application would have several a consideration which should be given appropriate pro-competitive effects insofar as banking in El weight in determining the public interest where, as Paso County is concerned. Bank is affiliated through common individual ownership with the fifth largest bank in the county ($15 million de­ 2 A proposal by Applicant to acquire that bank was denied by the Board on September 1, 1970 (1970 Federal posits). An effect of approval of the pending Reserve Bulletin 731). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 FEDERAL RESERVE BULLETIN □ APRIL 1971 here, the only possible adverse effects of the pro­ Board is not aware of any evidentiary basis for posal are of a more speculative nature. the premise on which the argument is based, and, The Board has considered a comment by the in the absence of a demonstration that such ex­ Department of Justice, which concludes that the pansion in fact, rather than in theory, leads to a proposed acquisition would have a significantly curtailment in the availability of essential corre­ adverse effect on competition on the grounds, spondent services, is unwilling to adopt that con­ among others, that consummation of the acquisi­ clusion as a principal basis for curtailing expansion tion might eliminate a source of correspondent which is likely to result in better service to the services for unaffiliated Colorado Springs banks, communities affected. would entrench the highly concentrated banking With regard to the alleged entrenchment effect, structure in El Paso County, would eliminate eight banks have been chartered in the Colorado potential competition, and might trigger acquisi­ Springs area in the past 15 years and remain tions of leading local banks throughout Colorado viable. The number of competing banks in the by the large State-wide holding companies. area does not now appear so small as to justify, As regards the possible loss of correspondent ser­ much less require, denial of Applicant’s proposal vices, the argument appears to be premised on the in order to preserve a mere possibility (as dis­ theory that the affiliation of a Denver bank with tinguished from a probability) of additional entry. a Colorado Springs bank will reduce the number Applicant has indicated that its expansion plans of correspondents for the other banks in Colorado into Colorado Springs are premised on the acquisi­ Springs, in part because these banks would be tion of a “wholesale” bank that is capable of unwilling to entrust confidential or business data offering sophisticated banking services and of to an affiliate of a competitor. However, corre­ supplying the capital requirements for the ex­ spondent services vary in character and import­ panding industrial needs of the city. These ser­ ance, and the majority could be equally well vices cannot economically be offered through performed by banks outside the areas in which acquisition of a small bank or through de novo the Justice Department alleges anticompetitive entry, unless the market involved affords unusual effects. Banks in Colorado Springs and in the State prospects for rapid expansion of such a subsidiary. have more “upstream correspondents” outside Analysis indicates that prospects of the Colorado than within the State. Portfolio and management Springs market are not as attractive, in this sense advice, loan participations, and miscellaneous at least, as might at first appear, as is more fully specialized services could be furnished by these detailed in the Concurring Statement of Governor out-of-State correspondents. Check processing Mitchell. For example, probably because a sub­ may be done by banks with computer facilities, stantial percentage of area personnel are transient at service bureaus or at the Federal Reserve in military personnel with other banking connections, Denver; no confidential information is involved the average account size and the per capita account which might preclude a bank from seeking the size of Colorado Springs banks are relatively small, services of an affiliate of a competitor. despite the area’s growing population. Accord­ Moreover, the argument relies, in part, at least, ingly, although it is nearly always possible that on the premise that Applicant’s Denver subsidiary, foreclosure of a given route of expansion will en­ courage a resourceful organization to seek an a leading correspondent bank in the State, would alternative, the Board does not in this case find be less desirable or less available as a corre­ the present competitive circumstances to be so spondent for banks in the Colorado Springs area if exigent, or possible alternatives so clearly pref­ it had an affiliate in that area. A difficulty with erable or so likely to result, as to warrant denial the argument is that it would appear applicable, of a proposal which would provide immediate if valid in any case, to any proposal through benefits of competition, service, and economies which the Denver bank would obtain a Colorado of scale. Springs affiliate, without particular regard to the Insofar as any “triggering effect” which ap­ size or market position of such affiliate. More proval of the application may have, each subse­ broadly applied, it argues against permitting a quent application also must receive the approval large correspondent bank to become a subsidiary of the Board. Presumably, one of the reasons for of a holding company, or in any other way expand the requirement of administrative approval of in­ into markets in which are located banks for which dividual cases, rather than the establishment of it serves, or could serve, as correspondent. The firm legislative guidelines, is to permit the recogni­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 349 tion of distinctions which may exist among cases Summary and conclusion. On the basis of all which would otherwise be grouped in proscribed relevant facts contained in the record, and in the or permitted categories. Each application should light of the factors set forth in section 3(c) of the be analyzed on the basis of the competitive struc­ Act, it is the Board’s judgment that the proposed ture of the market and other facts existing at the transaction would be in the public interest, and time of Board consideration of the matter. On that the application should be approved. that basis, and after careful consideration of this entire record, the Board concludes that Appli­ Concurring Statement of cant’s acquisition of Bank would not result in a Governor Mitchell monopoly or be in furtherance of any combina­ tion, conspiracy, or attempt to monopolize the I concur in the majority view that the applica­ business of banking in any area, and would not tion should be approved. I believe such action is consistent with the approvals given by the Board substantially lessen competition, tend to create a in two recent cases, one involving Affiliated monopoly, or restrain trade in any section of the country. Bankshares of Colorado 1 and the other United Financial and managerial resources and future Banks of Colorado.2 I am, however, troubled by prospects. The financial condition of Applicant the fact that the record in this and other recent cases involving the restructuring of the Colorado and its subsidiary banks is generally satisfactory, banking system gives rise to so much difference their management is qualified, and prospects of the group appear favorable. of judgment and opinion on the questions of com­ Bank is in satisfactory financial condition, but petition, concentration and the convenience and needs of the public. because of the recent retirement of its chief ex­ ecutive officer is undergoing a transitional period as regards its management, and at the present time Competition, Concentration and Service to the needs additional assistance in the trust department Public and data processing department. Applicant’s abil­ In assessing the impact on the public interest ity to provide assistance in these areas and to of bank mergers, holding company acquisitions or furnish management depth would further enhance de novo entry, there does not seem to be much Bank’s prospects. disagreement on basic goals. The public will These factors lend some weight for approval of benefit from more competition, less concentra­ the application. tion, greater convenience in the location of bank­ Convenience and needs of the communities ing facilities, and the provision of more diversified involved. Consummation of the Applicant’s pro­ services. Unfortunately, these objectives often posal would have no significant effect on the con­ seem not to be entirely compatible because more venience and needs of the communities served by and better services can only be realized through its present subsidiary banks. economies of scale and in banking this requires Colorado Springs, situated 71 miles south of larger banking organizations and may involve Denver, has a population of 135,060 and is the questions of concentration and anti-competitive­ second largest city and metropolitan area in ness. Colorado; the population of El Paso County is Public policy has been and continues highly almost twice that of the city. The economy of the ambivalent on the role of competition and con­ area is dependent on military installations, tourism centration in banking. Widespread banking fail­ and light manufacturing. Banking needs of the ures in the early Thirties increased reliance on area appear to be adequately and conveniently governmental policies designed to partially insulate served at the present time by the banks located banks and other depository institutions from the there; however, affiliation of Bank with Applicant pressures of competition. Banks were prohibited, could offer customers an alternative for sophisti­ pricewise, from competing with each other in cated services which the area’s growth is likely to supplying demand deposit services. In many demand. Applicant indicates that some specialized States, banks were prevented from branching into loan services would be introduced at Bank and that the “home office” territory of another bank. In internal improvements in trust services and data other States, competition via branching of all kinds processing would be effected. These considerations all lend weight for ap­ 1 1969 Federal Reserve Bulletin, 552. proval of the application. 111970 Federal Reserve Bulletin, 845. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 FEDERAL RESERVE BULLETIN □ APRIL 1971 was prohibited. State and Federal chartering and professionalization in banking has increased authorities often severely restricted entry in order and as electronic accounting, analysis, and data to prevent “over banking” and on the grounds processing have altered the profile of customer there was no need for additional offices. services and the cost dimensions of doing business. Today, a more competitive environment in The changing banking structure of Colorado and banking is possible because deposit insurance has Colorado Springs is illustrative of the difficulties all but removed failure as a cause of depositor loss of transition in a State which has traditionally and stronger banking managements and better limited economies of scale and is in the process of supervisory techniques have been developed. But moving toward a structure in which some of the many constraints on competition still apply. Fed­ advantages of scale may be realized. eral law limits competition for funds seeking a Branching constraints have impaired Colorado higher interest return. At times, Regulation Q has banking’s ability to service its customers more all but prohibited competition among financial adequately. Comparative statistics and the studies institutions for loanable resources; banks have of Professor Benston (see Appendix A) indicate been severely limited in their competitive access that there are significant economies of scale in to financial and capital markets. banking and that they tend to be “spent” in pro­ Under the circumstances, the statutory injunc­ viding additional convenience in offices and facil­ tion in the merger law to avoid anti-competitive ities when they are realized. This conclusion mergers or acquisitions is often difficult to imple­ conforms to expectations and “explains” the ment. Statutes aimed at “protecting” depository comparative structure data. Thus, per capita de­ institutions may do so by prohibiting effective mand deposits in accounts under $100,000 tend to competition. At the present time, competition on be relatively uniform among major banking the deposit side is largely limited to service and markets regardless of the number of banking convenience features. The evidence of such com­ offices. Additional banking offices add to the petition is often far from readily apparent as it convenience of depositors but do not add to the adheres to continuing personal and intangible re­ aggregate of such deposits in the area though they lationships between bankers and their customers. may strengthen a given bank’s competitive posi­ On the other hand, it is quite obvious that banks tion. For example, the State of Washington’s generally operate in competitive markets in their SMSA’s have almost the identical population of investment and lending operations. Portfolios of Colorado’s (1,810,000 compared to 1,764,000), Governments, State and local securities, mort­ the demand deposits under $100,000 in the areas gages, and loans to consumers, brokers and deal­ are very nearly the same, too, $766 million and ers, businesses and agriculture are acquired in $763 million, but there are almost 2 Vi times as competition with nonlocal banks, other local inter- many banking offices in these areas in Washington mediares, nonfinancial corporations and Govern­ as in Colorado. ment or Government-sponsored agencies. Since Colorado needs more banking facilities In recent years competition in banking at the and can only achieve this objective by changes in local level has been becoming more of a reality its banking structure which will permit economies as sheltering policies and neighborhood or local of scale to be realized it follows that in the absence monopolies are being broken down by greater of branching authorization, holding company de­ mobility of customers and their greater awareness velopment should be encouraged. of competitive terms. Radio and TV advertising, Moreover, holding companies ought to be re­ banking by mail or near work has broadened the quired to extend their operations with de novo banking alternatives for most households and offices whenever feasible. This general rule would businesses in urban areas. But banking competi­ be modified only if the banking market to be tion can only exist in a meaningful sense if at entered already had a normal complement of of­ least some banking units have the capacity to fices or because the economy of the area does not broaden their services and make them more con­ appear capable of profitably supporting an average veniently available. Their capability to do so is standard of banking convenience. a matter of realizing economies of scale. Entry into new markets. From a practical Economies of scale in banking. Banking has standpoint, the crux of the matter is a judgment long enjoyed significant economies of scale but in on the attitude of banking entrepreneurship toward the past decade, in particular, such economies have entry into a given market. When a bank seeks become increasingly important as specialization regulatory approval for entry how does it draw the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 351 line between de novo entry and purchase of a market shares are likely to be protected or frac­ market share or between purchase of a major or tionated by public policy, and the economies of minor market share? De novo entry has the dis­ scale attainable under State laws. Broadly speak­ advantage of start-up costs and getting customers ing, the approximate level of locally oriented bank away from someone else. It seems to work best in deposits is substantially determined by the eco­ rapidly growing areas where established institu­ nomic characteristics of the community and the tions in the older sections have locational dis­ competition from nonbank intermediaries, market advantages which a new institution can avoid. instruments, and nonlocal banks. The market Despite this important advantage it seems clear shares that individual competitors can attract is a from the record of cases before the regulatory function of their competitive abilities and the cost agencies that the purchase of as large a market involved in implementing them. Many banking share as is available is ordinarily the preferred markets are so small or so fractionated that knowl­ method of entry. In some instances, moreover, edgeable competitors would not attempt to enter it is the only method of entry that will be con­ them. Such markets can only attract marginal sidered by a knowledgeable banking entrepreneur. operators offering services of the lowest order. And, so far as the public interest is concerned, When banking entrepreneurs are given relative there is ordinarily a positive advantage when the freedom to establish offices, they ordinarily tend acquiring bank replaces an incompetent, stodgy to provide far more facilities than are available in or deteriorating management. Colorado today. Greater convenience to the public Given a general entrepreneurial preference for is possible with branching or holding company entry via acquisition, there is nothing inherently systems than with unit systems. Branching systems hostile to the public interest in regulatory author­ can service markets much more intensively than ities recognizing the legitimacy of corporate unit banks and generally considerably more in­ interests. An acquisition is not suspect because tensively than holding companies. They can do so it promises a profit for the stockholders of the because a certain scale of operation is essential to acquired bank or the acquiring bank, or both. It cover the management overhead of a banking becomes suspect if there is some evidence that the organization and because more specialization is newcomer will be less competitive, is predatory in possible. Looked at from the standpoint of entry its policies, or by the record of its acquisitions can alternatives, an area in which a competitive bank­ be shown to be moving toward domination of some ing office can generate $2-3 million in demand and banking market. time accounts may support a profitable branch Even if none of these conditions exist, the public operation but be unprofitable for a holding com­ interest may still be better served by de novo pany affiliate. A larger potential might support a entry, especially if the absorption of a competent holding company affiliate but be insufficient to and aggressive competitor should be involved. But cover the costs of an independent bank. Scale also if banking markets are too fractionated by new has a good deal to do with the quality and feasibil­ entries economies of scale will be minimal and ity of several banking functions, such as portfolio so will banking service standards. Moreover, a management, the extension of consumer and other regulatory decision turning on the method of entry, specialized credits and the functional applications granting entry is desirable, may be highly con­ of data processing equipment. jectural as to how entrepreneurmanship will react In certain holding company systems important to being limited to this alternative. If its reaction operating economies of scale are being realized; is negative, regulatory policy is used, in effect to in others, there is little to distinguish operations preserve the status quo. What is needed is an from those of a unit bank. If operating economies insight into the basis on which banks make entry are not exploited and passed on to the public in decisions. What do they regard as a realistic the form of better and more convenient banking balancing of the services that can be provided in facilities one of the major community advantages a new market and the cost incurred in doing so? inherent in holding company banking organiza­ Since banks have to be motivated by profitable tions is lost. prospects, the level of convenience and banking Whether the relatively new holding companies service they offer to the public depends crucially in Colorado have achieved significant economies on deposit levels which they believe can be ac- of scale is another fact on which the record is chieved. These, in turn, depend upon the com­ unsatisfactory. The probability is that progress is munity’s deposit potential, the extent to which being made in that direction but, of necessity, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 FEDERAL RESERVE BULLETIN □ APRIL 1971 rather slowly. The point is a critical one in ap­ with the limitations on branching in the Colorado praising the likelihood of de novo entry. Acquisi­ law. tion may be the only feasible route unless the Simply in terms of facilities, the Colorado potential market is expanding so rapidly that scale region as a whole, with one banking office for economies characteristic of larger independent 14,600 persons is, as indicated in the attachments, units will make for profitable operations. seriously deficient in providing convenient bank­ ing accommodations. But the ratio of persons to The Quality of Banking Services offices varies widely in sub-markets within the region. In Weld County (Greely), for example, A thorough appraisal of the quality of banking it is 5,900—only slightly in excess of the national services in Colorado is not included in the record average. In Logan County, where the Board even though in this decision, as well as others recently approved an acquisition, the figure is before it, structural implications have been de­ 4,600. In the Denver and Pueblo SMSA’s the liberately regarded as of primary importance. population per office is much higher—17,700 and Those portions of Colorado where the banking 16,700, respectively. Colorado Springs, with structure is changing are growing much faster than 12,700 persons per office, would clearly benefit the country as a whole (34 per cent compared to from additional banking offices. Such an improve­ 12 per cent in the past decade). They are ab­ ment in public convenience would no doubt have sorbing far more in capital and credit than can long since been achieved had Colorado permitted be locally generated, hence they need to attract branch banking. Its consummation is problemati­ funds from other sections of the nation and max­ cal, if not academic, under unit banking and at imize their utilization of available local resources. least doubtful in the near future with holding It is not clear how this is being done. Nor is it company affiliations. clear whether the Colorado banking system is Whether or not there are unmet banking needs functioning adequately by contemporary or his­ in Colorado Springs or any other community de­ torical standards. Banking does not, of course, pends upon the service standards applied. A cur­ serve all of the financial needs of this or any other rency exchange or supermarket can cash checks section of the country. Insurance companies, conveniently. A limited service office of a bank savings and loan associations, credit unions, capital can accept deposits. But there is more to modern markets, investment trusts, Government and quasi- banking than accepting deposits and cashing Government agencies, as well as individual inves­ checks. A present-day bank should be able to tors provide credit and capital, too. But knowl­ offer competitively priced services in a broad edgeable and capable bankers are a key element variety of financial markets. To do so it must in any community experiencing rapid economic have prospects for growth and earnings to attract growth. The essential need for Colorado at this men with ability and investors with money. stage of its development is access to their financial Meeting the convenience and needs of the com­ resources and expertise. munity, therefore, involves far more than an Some indication of the quality of service and enumeration of available service items and fea­ tures. Basically what matters in a bank is the the market penetration of local banking organiza­ financial capacity and banking know-how to deal tions can be inferred from comparative perform­ with the entire spectrum of a community’s finan­ ance of banking in Colorado, in the United States cial problems. and in roughly comparable markets where com­ petitive forces have been permitted to accommo­ Colorado Springs Banking Market date banking needs more fully. Accordingly, I have assembled in the attached Appendix A relevant Banking opportunities in the Colorado Springs evidence available to me which I believe suffi­ SMSA are generally thought to be promising, but ciently documents the applicability of the fore­ the economic and deposit data are not equally going generalizations to Colorado banking. reassuring, particularly in comparison with other The relationships and inferences outlined in that areas in Colorado. As presented in the attached Appendix point to the conclusion that, to better Appendix B, such data make it seem doubtful serve public needs and convenience, Colorado that de novo entry into the Colorado Springs should have more banking offices—or at least as SMSA has more than a marginal appeal. The cost many more offices as are economically consistent of branch entry might be entirely feasible, but— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 353 given the scale economies achievable in Colorado significantly below the modes in both the larger holding company practices at this time—affiliated and the smaller SMSA’s. de novo entry is, on the record of present perform­ ance, not obviously attractive. CONCENTRATION RATIOS IN 160 SMSA’s, 1968 Concentration ratios. One popular approach to Largest Bank Largest four Banks evaluating competitive situations is the use of Larger Smaller Larger Smaller Ratio SMSA’s SMSA’s Ratio SMSA’s SMSA’s concentration ratios—the share of the particular 50 & over 9% 15% 90 & over 24% 50% 40-50 15 26 80-90 34 20 market enjoyed by each banking organization. 30-40 37 28 70-80 13 14 Shares are usually measured in terms of total 20-30 30 23 60-70 15 10 Less than 20 9 8 Less than 60 14 6 deposits or assets. Markets are usually towns, 100 100 100 100 cities, counties, SMSA’s or States. The definition of the appropriate market area often involves con­ Another way of looking at concentration ratios siderable judgment and approximation but if the is to compare distributions of such ratios in unit intent is to seek that market in which the greater banking States with those in limited branching or state-wide branching States. The following table part of the deposit competition is local, then the measure of total deposits or total assets is often does this for 47 SMSA’s in 15 unit banking States and 57 SMSA’s in 17 limited branching States. It inappropriate. Local market shares can be much more reliably is immediately apparent that these measures show measured by using either demand or time and significantly lower levels of concentration in unit saving deposits of individuals, partnerships and banking States. But the ratios do not take into corporations whose account balances are less than account the affiliations through common owner­ some amount which is large enough to exclude ship of banking chains, satellite arrangements or account holders who are susceptible to nonlocal the dependence inherent in many bank loans to purchase a controlling stock interest. Nor do they bank competition. The amount cutoff needed to segregate local customers will not likely be less incorporate the effects of the recent expansion of holding companies in several States, most notably than $10,000 nor more than $100,000, depending Florida and Missouri. Therefore, in many unit upon the character of the community and the proximity of nonlocal banks. banking States, the concentration ratios fall sig­ nificantly short of reflecting the present degree of Using pertinent concentration ratios of this concentration in ownership and control of banks. type, I do not belive it can be established that, from the standpoint of public policy, the banking structure of Colorado Springs is unduly concen­ CONCENTRATION RATIOS FOR 47 METROPOLITAN AREAS IN UNIT BANKING STATES COMPARED TO trated or so anti-competitive as to require redress. 57 SUCH AREAS IN LIMITED BANKING STATES 1 I base that judgment on the clear evidence of the One Bank Four Banks Limited Limited degree of nonbank and nonlocal bank competition Concentration Unit Branching Unit Branching existing in the many banking markets and on the Ratio % % Less than 10 2 fact that Congress has not directed a broad re­ 10 to 20 15 2 20 to 30 43 16 vision or dismantling of the existing banking struc­ 30 to 40 26 38 2 ture. It is illuminating to factually compare the 4 5 0 0 t t o o 5 6 0 0 6 6 33 5 15 2 3 concentration ratios in SMSA’s comparable in size 60 to 70 2 2 15 16 70 to 80 2 2 19 9 to Colorado Springs, assuming this application had 80 to 90 21 24 90 & over 26 48 been approved. 100 100 100 100 The data conveniently available to me are con­ i Areas with total deposits of less than $500 million on centration ratios based on June 1968 demand June 30, 1970. Concentration ratios based on demand deposits IPC under $100,000, as of June 30, 1968. deposits IPC in accounts of under $100,000. The The unit banking States are: Arkansas, Colorado, ratios are for the largest bank in each area and Florida, Illinois, Iowa, Kansas, Minnesota, Missouri, the four largest banks combined. The accompany­ Montana, Nebraska, North Dakota, Oklahoma, Texas, West Virginia and Wyoming. ing table divides 160 SMA’s into two equal groups, The limited branching States are: Alabama, Georgia, those smaller and those larger than Colorado Indiana, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi, New Hampshire, New Jersey, New Mexico, Springs. The concentration ratio for the largest New York, Ohio, Pennsylvania, Tennessee, Utah and Wis­ bank in the Colorado Springs area is 31 per cent consin. and for the four largest 73 per cent. The large bank ratio falls into the modal groups in the Concentration ratios are sometimes calculated accompanying table and the four bank ratio falls for States as indicative of the dominance of a small Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 FEDERAL RESERVE BULLETIN □ APRIL 1971 number of banking organizations. The usefulness mitted under our regulatory system are in danger of such data is limited as there are very few in­ of being stifled. stances in which a State can be regarded as a realistic market area. The following table shows APPENDIX A such concentration ratios as of June 30, 1961 and Banking data for the Colorado metropolitan June 30, 1970. It is based on total deposits and region, for the U. S. and for two additional metro­ all units of a holding company are combined into politan regions, comprising most of the three one banking organization. The data are most in­ SMSA’s in Utah (Salt Lake, excluding Davis teresting because they show a significant decline County, Ogden and Provo-Orem) and two SMSA’s between 1961 and 1970 in shares of the largest in the Puget Sound area of Washington (Seattle and next to largest banks in over half of the States, and Tacoma), are instructive in revealing the little change in a third and an increase in 10 effect of structure patterns on banking services and per cent. market penetration. About 80 per cent of Colorado’s 2,196,000 MARKET SHARES OF LARGEST BANKING ORGANIZA­ TIONS IN EACH STATE, 1970 AND 1961. population is located in a multi-city metropolitan June 30, 1970 June 30, 1961 region east of the mountains, extending from Fort Number Number Number Number Collins, in the North, to Pueblo, in the South, and State 1 1 & 2 1 1 & 2 Alabama (LB) 12 19 18 25 centering in Denver. It consists of the seven Alaska (B) 34 61 31 55 Arizona (B) 46 79 47 83 counties which form three SMSA’s plus two count­ Arkansas (U) 7 11 7 13 ies which are important banking markets. This is California (B) 38 51 41 54 Colorado (U) 15 28 19 34 the region of Colorado in which the banking struc­ Connecticut (B) 19 36 18 35 Delaware (B) 33 54 43 63 ture is undergoing rapid change. It is presently D.C.(B) 30 54 32 56 Florida (U) 8 14 7 14 served by 122 (December 1969) banking offices Georgia (LB) 20 31 21 36 Hawaii (B) 38 70 43 82 (excluding industrial banks and military facilities) I I d ll a in h o o i s ( B (U ) ) 3 1 7 4 2 6 7 6 3 17 6 6 3 7 4 and 100 banking organizations. These banking Indiana (LB) 9 18 10 19 facilities are so located and linked that they could Iowa (U) 6 9 7 11 Kansas (U) 6 9 7 11 readily be incorporated into a single urban clearing Kentucky (LB) 10 19 12 23 Louisiana (LB) 10 16 14 22 area. The area is blanketed by common press, Maine (B) 16 29 14 25 Maryland (B) 20 33 21 35 radio and television coverage and in this sense is Massachusetts (LB) 27 39 28 40 Michigan (LB) 17 26 21 31 a single market. Minnesota (U) 27 51 31 56 Colorado has a much higher population to Mississippi (LB) 14 25 13 23 Missouri (U) 8 16 10 19 banking office ratio than either the U. S. as a Montana (U) 29 44 30 43 Nebraska (U) 10 18 15 25 whole or the comparable metropolitan areas. (See Nevada (B) 62 77 73 86 New Hampshire (LB) 16 26 12 18 accompanying Table) Thus it is atypical in that New Jersey (LB) 5 10 6 12 New Mexico (LB) 17 32 17 31 the banks in that area provide only 40 per cent of New York (LB) 17 31 17 32 North Carolina (B) 21 38 24 41 the facilities available on the average in the North Dakota (U) 17 34 19 37 country as a whole. Economization of offices Ohio (LB) 10 16 12 18 Oklahoma (U) 7 14 12 23 reduces the cost of banking but, under present-day Oregon (B) 43 81 43 85 Pennsylvania (LB) 12 19 13 21 practices, at the expense of inconvenience to bank Rhode Island (B) 53 85 54 88 South Carolina (B) 23 37 25 36 customers and the assumption of certain banking South Dakota (B) 24 39 24 33 Tennessee (LB) 9 18 11 21 services, notably check cashing and currency ser­ Texas (U) 5 11 8 15 vice, by supermarkets, other retailers, or currency Utah (LB) 30 46 32 53 Vermont (B) 14 28 9 19 exchanges. Virginia (B) 14 25 7 14 Washington (B) 33 53 36 55 Commercial banks are not the only financial West Virginia (U) 5 10 6 12 Wisconsin (LB) 16 22 20 27 intermediaries providing credit and depository ser­ Wyoming (U) 15 23 17 28 vice to the public—savings and loan associations, credit unions, and mutual savings banks (in some I conclude from my analysis of this case that areas) are highly competitive with banks.1 The the changes in banking structure taking place in Colorado are not only needed to provide better 1 It is sometimes assumed from the over-all deposit banking service and to facilitate growth in this statistics that all or most of the 63 million households in developing metropolitan region, but that there is the nation have checking accounts. The 84 odd million de­ no significant evidence that undue concentration mand deposit accounts in the nation’s commercial banks should not be so interpreted. This total includes busi­ is a threat or that competitive opportunities per­ nesses, nonprofit institutions and multiple accounts of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 355 table shows the number of offices and amount of For an average commercial bank, overall elasticity deposits in the Colorado, Utah and Washington with respect to operating costs is .93. A 10 per cent increase in the output at the average bank of each areas. These inter-area comparisons are useful service while holding all other independent variables in revealing a relatively stable relationship between constant at their geometric mean values is accom­ panied by a 9.3 per cent increase in operating costs. area income and depository aggregates. But the crude total deposit aggregates include correspond­ Branch banking was found to be more expensive ent bank balances, money market CD’s and large than unit banking for both commercial banks and compensating balances in demand accounts which savings and loans. However, these costs increase at a decreasing rate as additional branches are added. Fur­ are highly exposed to nonlocal bank competition ther, for commercial banks, the additional cost of and often do not accurately portray local com­ branching appears to be offset by the economies of petitive positions. If depository totals are refined larger scale operation, since larger banks tend to be branch banks. . . . to more nearly reflect household and local sources . . . Elasticities measured indicate that larger firms of funds, the nature and degree of local bank and are preferable cet. par. However, for specific regula­ nonbank competition and the role of branching is tory decisions the amount of the expected savings and operating costs should be compared to an estimate more clearly revealed. (See Table) These rela­ of the disadvantages, if any, of favoring larger banks. tionships are more consistent than total deposits However, one can generalize that the size of the economies of scale is not such that medium sized with such income variables as personal income or banks would be “squeezed out” by larger banks if adjusted gross income. growth and mergers were allowed. However, small A reasonable conclusion from these data, bear­ banks do appear to have a considerable cost disad­ vantage, especially with respect to branches of larger ing in mind that banking facilities are two to banks. In choosing between chartering a small unit three times as numerous in the nation and the bank or allowing branching of a larger bank, the illustrative areas as in the Denver region, is that regulatory authorities should prefer the branching application unless considerations of competition are branching makes possible larger organizations and overriding. economies of scale that cannot be attained in unit Benston’s findings are especially relevant to the banking and that may be seriously diluted even issue of a restructured banking system in Colorado. in holding company organizations. In Washington They suggest that greater dependence on large and Utah, and branching States generally, those banking organizations could extend the scope and economies appear to be absorbed by intra­ improve the convenience of banking in that State. depository industry competition. In the process more convenient depository services are provided APPENDIX B but apparently without significantly enlarging the industry’s market size. In States where competi­ The richness and penetration of the banking tion is limited by law and numerous offices are market in the Colorado Springs SMSA is best not available, the inconveniences and costs of examined by reviewing the comparative perform­ getting to and from more remote locations are ance by all area depository institutions; commer­ apparently borne by bank customers, particularly cial banks, savings and loan associations and credit household depositors. unions. As is apparent from the data already cited, Such a conclusion is consistent with the findings this comparison should be done by reference to in a recent paper (Sept. 1970), by Professor the level of bank time and savings deposits under George Benston, of the University of Rochester, $100,000 since this is the financial sector which wherein he summarized several studies on econ­ is sensitive to local competitive forces. omies of scale in commercial banking as follows: 2 Time and savings account deposits at all de­ pository institutions in per capita terms are sig­ households (estimates for the average household range nificantly lower in the Colorado Springs SMSA from 1.2 to 1.4 accounts). A large number of income ($849) than in the Pueblo ($1,320) and Denver recipients, probably between 10 and 15 per cent, do not have checking accounts but use coin and currency for SMSA’s ($1,725), or in Boulder or Larimer their transactions and credit unions, savings and loan asso­ Counties. ciations, mutual savings banks, U. S. savings bonds, and The major source for the relatively poor show­ passbook accounts in commercial banks as readily access­ ible sources of liquidity in an emergency or for major ing of intermediaries in the Colorado Springs household expenditures. Banks clearly are not the sole SMSA does not seem to be due to lack of com­ alternative for savers nor do they even handle a majority petition on the part of the commercial banks of money settlements for millions of households. 2 Presented at the 1970 Conference of University Pro­ there. It lies in the failure of the intermediaries fessors, sponsored by the American Bankers Association, as a group to match the performance of similar the University of California, Los Angeles, and the Uni­ versity of Southern California. institutions in the Denver and Pueblo SMSA’s Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 FEDERAL RESERVE BULLETIN □ APRIL 1971 or in Boulder or Larimer Counties. In fact, even deposit totals are not greatly different within the though time and savings deposits of commercial region. However, there are significantly more banks lag well behind the combined total for accounts per capita in Colorado Springs (.41) savings and loan associations and credit unions compared to Denver and Pueblo SMSA’s (.34). in all of these areas (no more than 40 per cent A partial explanation of these characteristics of of the depository market), the differential is not the Colorado Springs banking and depository significantly less adverse in Colorado Springs than markets probably lies in the fact that 20 to 30 elsewhere. per cent of the households or potential depositors The relatively stable relationship of population in the area are military personnel. Some have to demand deposit accounts under $100,000 established financial connections in other locations. noted earlier in the comparison of the Colorado Others obviously make only partial use of local metropolitan region with SMSA’s in Utah and banking facilities, apparently using service-charge Washington and with national data also shows up type demand deposit accounts. Thus the banks within Colorado. The average size of such ac­ in Colorado Springs seem to be able to attract at counts under $1,000 and per capita demand least as many and even more accounts (relative COLORADO DEPOSIT MARKETS ___________SMSA’s Counties Col. Springs Denver Pueblo Boulder Larimer Time & Savings Accounts per capita Commercial Banks (under $100,000) $ 334 $ 670 $ 410 $ 428 $ 575 Savings & Loan and Credit Unions 515 1.055 910 806 870 Total 849 1,725 1,320 1,234 1,445 Per Cent Time & Saving in Commercial Banks 39 39 31 35 40 No. of Bank Time & Saving Accts. per capita .32 .34 .34 .34 .32 IPC Demand Deposits Under $100,000 Amount per capita $ 393 $ 455 $ 321 $ 408 $ 395 No. of accts. per capita .41 .34 .34 .42 .43 Average size of IPC Demand Acct. (Under $1,000) $ 217 $ 235 $ 207 $ 243 $ 217 COMPARATIVE BANKING AND DEPOSITORY MEASURES Colorado, Utah, Washington, United States __________Metropolitan Areas_________ U.S. Colorado Utah Washington Totals Population (thousands)4/1/70 (preliminary) 1,764 728 1,810 204,351 Number of: Comm, banking offices (8/70) 121 105 281 36,049 Mutual savings bank offices (8/70) 0 0 26 1,528 Savings & loan offices (5/31/70) 94 23 78 8,498 Total Offices 215 128 385 46,075 Population per: Commercial banking office 14,582 6,937 6,440 5,669 P A e d D r j s . e o p g n o r a o s l s it s i o n i r c n y o c m o in m e s t e . p p o e f r e f r i c c c e a a p p it i a ta ( ( d d o o l l l l a a r r s s ) ) 8 2 3 , , , 2 1 4 0 3 9 6 6 2 2 5 1 , , , 8 6 8 6 9 7 8 0 0 4 4 2, , , 8 0 7 6 6 0 8 7 0 2 4 3, , , 4 4 2 2 3 8 1 5 0 Total deposits (millions of dollars) Commercial banks (6/29/68) 2,902 1,188 2,605 400,878 Mutual savings banks (6/29/68) 0 0 819 63,031 Savings & loan assns. (9/68) 1,460 327 987 126,779 Total 4,362 1,515 4.411 590,688 Total deposits per capita (dollars) Comercial banks 1,645 1,631 1,440 1,961 Mutual savings banks 0 0 453 308 Savings & loan assns. 828 449 545 621 Total 2,473 2,080 2,438 2,890 Time & Savings IPC (under $100,000) (millions of dollars) Commercial banks 1,073 459 1,173 144,863 Mutual savings banks 0 0 806 62,064 Total 1,073 459 1,979 206,927 Time & Savings (under $100,000 per capita) (dollars) Commercial banks 608 631 684 709 Mutual savings banks & savings & loan assns. 828 449 991 925 Total 1,436 1,080 1,639 1,624 Demand deposits under $100,000 (millions of dollars) IPC Total 763 266 766 93,171 Per Capita 432 365 423 456 Per capita deposits under $100,000 of mutual savings banks, savings & loan assns., IPC demand, time and savings of commercial banks (dollars) 1,868 1,445 2,062 2,080 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 357 to population) than in other Colorado areas but Thus, Bank is part of a banking group with assets the average balances are consistently lower, par­ of over $120 million—one of only eight organiza­ ticularly in time and savings accounts. tions in Colorado which have deposits in excess of Another bit of evidence suggesting that the $100 million—which could serve as the nucleus of market in Colorado Springs is less attractive than a new holding company offering competition to might appear is that savings and loan and credit Applicant and the other large banking organiza­ tions in the State. union totals also run well behind those in the other areas. Part of the reason must be that Ordinarily, a favorable aspect of the application would be its introduction of new competition into adjusted gross income lags in the Colorado Colorado Springs by breaking the affiliation be­ Springs SMSA. It is almost a third higher in tween Bank and another bank in that market. Denver SMSA and Boulder County; it is 10 Under the circumstances of this case, however, the per cent higher in Pueblo SMSA. In short, breaking of the affiliation will likely mean that one Colorado Springs is not a particularly productive less Statewide banking organization will be formed, banking market even when cultivated intensively. with all the members of the above-described chain becoming affiliates of one or the other of the few Dissenting Statement of Governors large holding companies now in existence. Any Robertson, Maisel, and Brimmer benefits to competition which consummation of the proposal might provide could be achieved through In our judgment, Applicant’s acquisition of means less inimical to regional competition than Bank will eliminate existing competition, foreclose the present proposal. Moreover, alternate methods potential competition, lessen the likelihood of of entry in the Colorado Springs area would also formation of a strong competitor to the existing be more beneficial to competition in that area, holding companies in the State, and further the since such entry would likely lead to meaningful concentration of banking resources in Colorado. deconcentration, while Applicant’s acquisition of Based on the facts of record and the statutory the largest independent bank in the area would criteria, we would deny the application. tend to produce the opposite result. Consummation of the proposal will eliminate In this connection, we believe that Colorado present competition between Bank and Applicant’s Springs is not, as the majority contends, an unat­ largest subsidiary, First National Bank of Denver tractive market for de novo entry. That market (“Denver Bank”), located 71 miles north of Colo­ has enjoyed a good growth rate (between 1960 and rado Springs. Such competition is particularly 1970 the population has increased from 70,000 to significant and immediate with respect to mortgage 135,000), and has a higher than average popula­ lending; Denver Bank maintains a loan production tion per banking office (12,700). The total de­ office approximately one block from Bank in Colo­ posits per banking office ($13,434,000) compare rado Springs that competes actively with Bank for favorably with the ratio in the State of Colorado mortgage loans. During the first six months of ($13,617,000) as well as that prevailing through­ 1970, Bank ranked third in mortgage lending in out the United States ($12,559,000). the Colorado Springs area, while Denver Bank In addition to the above, we previously have ranked fourth. Combined, Denver Bank and Bank expressed our belief that approval of the acquisi­ constitute the largest mortgage lender in the area. tion of large banking organizations by the large Additionally, Denver Bank derives a substantial Colorado holding companies is inconsistent with number of its trust accounts from Colorado the Congressional mandate to control the expan­ Springs and the two banks compete to some extent sion of bank holding companies so as to prevent for the deposit accounts of large companies and concentration of banking resources in a few large developers in the area. organizations (e.g., 1970 Federal Reserve Bul­ Bank is the ninth largest banking organization letin 543). The consideration which compelled and the second largest independent bank in Colo­ our votes to deny that application apply with equal rado. It is affiliated with another bank in Colorado if not stronger force to the present application. Springs ($14 million deposits) and with two banks On all of the facts of record, we conclude that in the Pueblo area (combined deposits of $58 mil­ the acquisition will substantially lessen competition lion), one of which is the largest bank in its area without offsetting public benefit, and that it should and the largest independent bank in the State. be denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 FEDERAL RESERVE BULLETIN □ APRIL 1971 NORTHERN VIRGINIA BANKSHARES such period is extended for good cause by the INCORPORATED, Board, or by the Federal Reserve Bank of Rich­ BAILEY’S CROSSROADS, VIRGINIA mond pursuant to delegated authority. By order of the Board of Governors, April 8, In the matter of the application of Northern 1971. Virginia Bankshares Incorporated, Bailey’s Cross­ roads, Virginia, for approval of action to become Voting for this action: Chairman Burns and Gov­ ernors Robertson, Daane, Brimmer, and Sherrill. a bank holding company through the acquisition Absent and not voting: Governors Mitchell and of 100 per cent of the voting shares of (7) Hamil­ Maisel. ton Bank and Trust Co., Bailey’s Crossroads, (Signed) Kenneth A. Kenyon, Virginia, and (2) First Manassas Bank and Trust Deputy Secretary. Co., Manassas, Virginia, by merger into two non­ operating banks. [seal] Statement Order Approving Action To Become A Bank Holding Company Northern Virginia Bankshares Incorporated, Bailey’s Crossroads, Virginia (“Applicant”), has There has come before the Board of Governors, filed with the Board, pursuant to section 3(a)(1) pursuant to section 3(a)(1) of the Bank Holding of the Bank Holding Company Act of 1956, an Company Act of 1956 (12 U.S.C. 1842(a)(1)) application for approval of action to become a and section 222.3(a) of Federal Reserve Regu­ bank holding company, through the acquisition of lation Y (12 CFR 222.3(a)), an application by 100 per cent of the voting shares of (1) Hamilton Northern Virginia Bankshares Incorporated, Bank and Trust Co. (“Hamilton Bank”), Bailey’s Bailey’s Crossroads, Virginia, for the Board’s ap­ Crossroads, Virginia by merger into a nonoperating proval of action whereby Applicant would become bank of which Applicant plans to own all the a bank holding company through the acquisition shares, and (2) First Manassas Bank and Trust of 100 per cent of the voting shares of (1) Hamil­ Co. (“Manassas Bank”), Manassas, Virginia, by ton Bank and Trust Co., Bailey’s Crossroads, merger into a nonoperating bank of which Appli­ Virginia and (2) First Manassas Bank and Trust cant plans to own all the shares. Co., Manassas, Virginia, by merger into two non­ The nonoperating banks have no significance operating banks.1 except as a means to facilitate the acquisition of all As required by section 3(b) of the Act, the the voting shares of Hamilton Bank and Manassas Board gave written notice of receipt of the appli­ Bank. Accordingly, the proposal is treated herein cation to the Virginia Commissioner of Banking as the proposed acquisition of the shares of these and requested his views and recommendation. The two banks. Commissioner recommended approval of the ap­ Views and recommendations of supervisory au­ plication. thority. As required by section 3(b) of the Act, Notice of receipt of the application was published the Board gave written notice of receipt of the in the Federal Register on February 4, 1971 (36 application to the Virginia Commissioner of Bank­ Federal Register 2430), which provided an op­ ing, and requested his views and recommendation. portunity for interested persons to submit com­ The Commissioner recommended approval of the ments and views with respect to the proposed application. transaction. A copy of the application was for­ Statutory considerations. Section 3(c) of the warded to the United States Department of Justice Act provides that the Board shall not approve an for its consideration. The time for filing comments acquisition that would result in a monopoly or and views has expired and all those received have would be in furtherance of any combination or been considered by the Board. conspiracy to monopolize or to attempt to monop­ It is hereby ordered, for the reasons set forth olize the business of banking in any part of the in the Board’s Statement of this date, that said United States. Nor may the Board approve a pro­ application be and hereby is approved, provided posed acquisition, the effect of which, in any sec­ that the action so approved shall not be consum­ tion of the country, may be substantially to lessen mated (a) before the thirtieth calendar day fol­ competition, or to tend to create a monopoly, or lowing the date of this Order or (b) later than which in any other manner would be in restraint three months after the date of this Order, unless of trade, unless the Board finds that the anticom­ petitive effects of the proposed transaction are 1 See page 332 of this Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 359 clearly outweighed in the public interest by the On the basis of the foregoing, the Board con­ probable effect of the transaction in meeting the cludes that consummation of this proposal would convenience and needs of the communities to not result in a monopoly or be in furtherance of be served. In each case, the Board is required to any combination, conspiracy, or attempt to mo­ take into consideration the financial and manage­ nopolize the business of banking in any part of rial resources and future prospects of the bank the United States, and would not restrain trade, holding company and the banks concerned, and substantially lessen competition, or tend to create the convenience and needs of the communities to a monopoly. be served. Financial and managerial resources and future Competitive effects of the proposed transaction. prospects. Applicant’s financial condition and its The 10 largest banking organizations in the State management appear to be satisfactory and its pros­ of Virginia, six of which are registered bank hold­ pects, which are dependent upon those of its two ing companies, control total deposits of $5.01 proposed subsidiaries, appear favorable. billion, representing 69.3 per cent of the deposits The financial condition and management of held by all commercial banks in the State.1 Con­ Hamilton Bank are satisfactory, and its prospects summation of the proposal herein would result are regarded as favorable. The financial condition in Applicant becoming the State’s eighth and and management of Manassas Bank are satisfac­ smallest registered bank holding company, con­ tory, and its prospects, which are favorable, would trolling .1 per cent of commercial bank deposits be enhanced through affiliation with Applicant. in the State. The Board concludes that considerations relating Hamilton Bank ($8.3 million deposits), located to the banking factors are consistent with approval in suburban Washington, D. C., operates two of the application as they relate to Applicant and offices in Fairfax County, Virginia, and has re­ Hamilton Bank, and lend some weight toward ceived permission to open two additional branches approval as they relate to Manassas Bank. in Alexandria and Falls Church, Virginia. Hamil­ Convenience and needs of the communities in­ ton Bank is one of the smaller of the 21 banks lo­ volved. The major banking needs of the areas cated in Fairfax County, an area dominated by served by Hamilton Bank and Manassas Bank the State’s seven largest banking organizations. appear to be adequately served by present banking Manassas Bank ($1.1 million deposits) is lo­ facilities. Consummation of the proposal, how­ cated in a neighborhood shopping center in Prince ever, would enlarge the lending base of each Bank; William County near the town of Manassas, ap­ and moreover, Applicant may eventually become proximately 30 miles southwest of Washington, an alternative source of expanded banking services D. C. Manassas Bank is by far the smallest of the to the larger banking organizations now repre­ competing banks located in the northwest portion sented in the areas involved. of Prince William County, and holds only about These considerations are consistent with, and 2.4 per cent of the commercial bank deposits in lend some support for, approval of the application. that area. Summary and conclusions. On the basis of all Hamilton Bank and Manassas Bank are located the relevant facts contained in the record, and in 25 miles apart, and do not appear to be signifi­ the light of the factors set forth in section 3(c) cant competitors, primarily because of overlapping of the Act, it is the Board’s judgment that the ownership and management. Manassas Bank was proposed transaction would be in the public in­ organized under the leadership of the president of terest and that the application should be approved. Hamilton Bank. In addition, each bank serves its immediate area, and neither derives any significant COLORADO CNB BANKSHARES, INC., business from the service area of the other. Fur­ DENVER, COLORADO thermore, it does not appear likely that competi­ In the matter of the application of Colorado tion between the two banks would develop in the CNB Bankshares, Inc., Denver, Colorado, for ap­ future because of numerous banking alternatives proval of acquisition of at least 80 per cent of the in the area and Virginia’s banking law which voting shares of First National Bank of Sterling, precludes either bank from establishing a branch Sterling, Colorado. office in the county of the other. Order Approving A cquisition of Bank Stock 1A11 banking data are as of June 30, 1970, adjusted to By Bank Holding Company reflect holding company formations and acquisitions ap­ There has come before the Board of Governors, proved by the Board to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 FEDERAL RESERVE BULLETIN □ APRIL 1971 pursuant to section 3(a)(3) of the Bank Holding Applicant’s subsidiary that is closest to Bank Company Act of 1956 (12 U.S.C. 1842(a)(3)) is separated from it by 115 miles. The record and section 222.3(a) of Federal Reserve Regula­ indicates that there is no significant competition tion Y (12 CFR 222.3(a)), the application of between Bank and any of Applicant’s subsidiary Colorado CNB Bankshares, Inc., Denver, Colo­ banks, and none is likely to develop in the future. rado, a registered bank holding company, for the Apparently, there is little likelihood that Appli­ Board’s prior approval of the acquisition of at cant would establish a de novo office in the area least 80 per cent of the voting shares of First served by Bank. Thus, it appears that consumma­ National Bank of Sterling, Sterling, Colorado tion of Applicant’s proposal would not eliminate (“Bank”). significant existing competition nor foreclose po­ As required by section 3(b) of the Act, the tential competition. Rather, affiliation with Appli­ Board gave written notice of receipt of the appli­ cant should enable Bank to compete more ag­ cation to the Comptroller of the Currency and gressively with the two larger banks in Sterling. requested his views and recommendation. The On the basis of the record before it, the Board Comptroller recommended approval. concludes that consummation of the proposed Notice of receipt of the application was pub­ acquisition would not have an adverse effect on lished in the Federal Register on February 9, 1971 competition in any relevant area. The financial (36 Federal Register 2643), providing an op­ and managerial resources and prospects of Appli­ portunity for interested persons to submit com­ cant, and its subsidiaries, are regarded as consis­ ments and views with respect to the proposal. A tent with approval of the application. Bank’s copy of the application was forwarded to the prospects for growth, continuity of management United States Department of Justice for its con­ and the recruiting and training of management sideration. Time for filing comments and views personnel should be enhanced by consummation has expired and all those received have been con­ of the proposed affiliation. Also, Applicant pro­ sidered by the Board. poses to assist in providing customers of Bank The Board has considered the application in with a number of expanded and improved services the light of the factors set forth in section 3(c) with respect to loans and fiduciary services. Con­ of the Act, including the effect of the proposed siderations relating to the convenience and needs acquisition on competition, the financial and man­ agerial resources and future prospects of the of the communities involved lend some support Applicant and the banks concerned, and the con­ to approval of the application. It is the Board’s venience and needs of the communities to be judgment that the proposed transaction would be served. Upon such consideration, the Board finds in the public interest, and that the application that: should be approved. Applicant is the third largest banking organiza­ It is hereby ordered, for the reasons set forth tion in Colorado by virtue of control of 6 banks in the findings summarized above, that said appli­ with aggregate deposits of approximately $282 cation be and hereby is approved, provided that million, representing 7.4 per cent of all deposits the action so approved shall not be consummated of commercial banks in the State. (All banking (a) before the thirtieth calendar day following the data are as of June 30, 1970, adjusted to reflect date of this Order or (b) later than three months holding company acquisitions approved by the after the date of this Order, unless such time is Board through February 28, 1971). Upon ac­ extended for good cause by the Board, or by the quisition of Bank ($6.6 million of deposits), Federal Reserve Bank of Kansas City pursuant to Applicant would increase its share of State-wide delegated authority. deposits to 7.6 per cent, and Applicant would By order of the Board of Governors, April 8, retain its relative position among banking organi­ 1971. zations in the State. On the basis of deposits, Bank is the smallest Voting for this action: Chairman Burns and Gov­ ernors Robertson, Daane, Brimmer, and Sherrill. of the three banks in Sterling and, with about 16.5 Absent and not voting: Governors Mitchell and per cent of market deposits, Bank ranks third in Maisel. size among the four banks located in the relevant market, defined as approximately Logan County. (Signed) Kenneth A. Kenyon, Deputy Secretary. The largest bank in the market holds 52.8 per cent of deposits in the area. [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 361 FIRST FLORIDA BANCORPORATION, acquisitions approved through February 28, TAMPA, FLORIDA 1971.) Midway Bank (deposits of $6 million) is lo­ In the matter of the application of First Florida cated in an unincorporated area west of the Tampa Bancorporation, Tampa, Florida, for approval of city limits. Applicant’s lead bank is located in the acquisition of 80 per cent or more of the voting downtown Tampa; and a much smaller bank sub­ shares of Midway Bank at Tampa, Tampa, sidiary of Applicant is located near the eastern Florida. end of the city. These two present subsidiary banks in the Tampa area control about 14 per cent of market deposits and, as a result, Applicant is the Order Approving Acquisition of Bank Stock third largest banking organization in the market, By Bank Holding Company defined as approximately Hillsborough County There has come before the Board of Governors, except for Plant City. Midway Bank controls only pursuant to section 3(a)(3) of the Bank Holding .7 per cent of market deposits, which makes it Company Act of 1956 (12 U.S.C. 1842(a)(3)) the third smallest of the 19 banking organizations and section 222.3(a) of Federal Reserve Regula­ in the market. Therefore, consummation of the tion Y (12 CFR 222.3(a)), an application by proposal will increase market concentration only First Florida Bancorporation, Tampa, Florida marginally. (“Applicant”), a registered bank holding com­ Midway Bank and Applicant’s smaller Tampa pany, for the Board’s prior approval of the acqui­ bank are not regarded as competitors nor is it sition of 80 per cent or more of the voting shares likely that they would become competitors in the of Midway Bank at Tampa, Tampa, Florida future. They are located at opposite ends of the (“Midway Bank”). city, about 15 miles apart, and there are several As required by section 3(b) of the Act, the intervening banks. Nor does Midway Bank com­ Board gave written notice of receipt of the appli­ pete to a significant extent with Applicant’s lead cation to the Florida State Commissioner of Bank­ bank, despite some overlap in the service areas of ing and requested his views and recommendation. the two banks. Applicant’s lead bank is a large The Commissioner recommended approval of the wholesale-oriented institution, while Midway Bank application. is a small retail-oriented institution; thus, in gen­ Notice of receipt of the application was pub­ eral, they serve customers with different needs. lished in the Federal Register on January 28, 1971 Furthermore, the two banks have been affiliated (36 Federal Register 1373), providing an oppor­ since 1968 and common directors and officers tunity for interested persons to submit comments serve both banks. Because this affiliation, and the and views with respect to the proposal. A copy of fact that Applicant’s lead bank is better equipped the application was forwarded to the United States to provide large credits and more sophisticated Department of Justice for its consideration. Time banking services, it obtains business from Midway for filing comments and views has expired and Bank’s service area on a referral basis from Mid­ all those received have been considered by the way Bank. In addition, there are a number of Board. banks in the area intervening between Midway The Board has considered the application in Bank and Applicant’s lead bank. On the basis of the light of the factors set forth in section 3(c) the facts of record, it seems unlikely that the two of the Act, including the effect of the proposed banks would become competitors in the future. acquisition on competition, the financial and man­ Therefore, it appears that consummation of the agerial resources and future prospects of the Ap­ proposed acquisition would not eliminate any sig­ plicant and the banks concerned, and the con­ nificant existing competition nor foreclose signifi­ venience and needs of the communities to be cant potential competition; nor does it appear served. Upon such consideration, the Board finds likely that consummation would have any undue that: adverse effects on other banks in the areas in­ Applicant controls 18 banks with aggregate volved. deposits of approximately $360 million, represent­ On the basis of the record before it, the Board ing 2.9 per cent of the total commercial bank de­ concludes that consummation of the proposed posits in the State, and is the sixth largest banking acquisition would not adversely affect competition organization in Florida. (All banking data are as in any relevant area. The financial condition, man­ of June 30, 1970, and reflect holding company agement, and prospects of Applicant and its sub­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

sidiary banks are regarded as generally satisfac­ It is hereby ordered, for the reasons set forth tory. Under the direction of Applicant’s lead bank, in the findings summarized above, that said ap­ the financial condition of Midway Bank has im­ plication be and hereby is approved, provided that proved considerably; the management of Midway the action so approved shall not be consummated Bank is regarded as satisfactory and its prospects (a) before the thirtieth calendar day following appear to be favorable. Considerations relating to the date of this Order or (b) later than three the convenience and needs of the communities to months after the date of this Order, unless such be served lend some weight in support of approval time is extended for good cause by the Board, or of the application because Midway Bank, through by the Federal Reserve Bank of Atlanta pursuant association with a large full-service banking or­ to delegated authority. ganization, would be able to continue to offer By order of the Board of Governors, April 8, specialized services, such as trust, travel, and inter­ 1971. national services, and would be assured a source Voting for this action: Chairman Burns and Gov­ of qualified management and additional capital, if ernors Robertson, Maisel, and Sherrill. Absent and not voting: Governors Mitchell, Daane, and Brimmer. needed. It is the Board’s judgment that consumma­ tion of the proposed acquisition would be in the (Signed) Kenneth A. Kenyon, Deputy Secretary. public interest, and that the application should be approved. [seal] 362 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication April 14 Industrial production edged up slightly in March, construction materials increased further in March, nonfarm employment changed little, and the but nondurable materials declined. unemployment rate increased. Retail sales rose. Bank credit, the money supply, and time and EMPLOYMENT savings deposits increased. Between mid-March Nonfarm payroll employment was little changed and mid-April yields on U.S. Government between February and March, and continued well securities increased, and those on municipal and below the level of a year earlier. Employment corporate bonds changed little through early April increases in construction and in State and local and then rose somewhat. governments were about offset by a further decline in manufacturing, mainly in durable goods in­ INDUSTRIAL PRODUCTION dustries. The average workweek of manufacturing Industrial production in March was 165.2 per cent production workers rose 0.4 hour, following a decrease of 0.3 hour in February. The unemploy­ of the 1957-59 average, compared with 164.9 ment rate increased in March to 6.0 per cent per cent in February and 171.1 per cent a year earlier; the total index was 174.6 per cent at its from 5.8 per cent in February. peak in July 1969. Output of consumer goods RETAIL SALES rose in March but was offset by further curtail­ ments in production of business and defense The value of retail sales in March rose 1.5 per cent equipment. Over-all output of industrial materials from February. Sales at durable goods stores were was about unchanged. up 2 per cent and at nondurable goods stores 1.5 Auto assemblies were at an annual rate of about per cent. Total sales were 7 per cent above a 9 million units, the same as in February. Pro­ year earlier. duction schedules for April indicate some decline from the February-March rate. Output of furni­ AGRICULTURE ture, television sets, and consumer staples rose in March. Production of industrial equipment and Recent surveys show that farmers intend to expand commercial aircraft declined further and com­ crop plantings this year but to reduce hog output mercial and farm equipment remained at about in response to the short feed supplies and heavy the February level. Output of iron and steel and hog production in recent months. Total crop acreage is expected to be up 4 per cent from last INDUSTRIAL PRODUCTION year and 7 per cent from 1969 when a record crop 1957-59=100 was produced. 180 WHOLESALE AND CONSUMER PRICES 160 The wholesale price index increased 0.3 per cent after seasonal adjustment from February to March. 140 Industrial commodities rose 0.2 per cent, largely as a result of higher prices for construction materials. 200 Farm and food products were slightly higher as processed foods and feeds more than offset a 180 decline in prices of farm products. 160 The consumer price index rose 0.2 per cent in February, seasonally adjusted, following an in­ 140 crease of 0.3 per cent in January. Sharp declines in mortgage interest rates and prices of used cars and gasoline offset much of the continued strong F.R. indexes, seasonally adjusted. Latest figures: March. 363 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

advance for other service costs and resumed price time and savings deposits at large banks and total increases for food and apparel. time and savings deposits at country banks con­ tinued very heavy but sales of large negotiable CD’s slackened further. BANK CREDIT, DEPOSITS, AND RESERVES Net borrowed reserves of member banks aver­ aged about $120 million over the 5 weeks ending Commercial bank credit, adjusted for transfers of March 31 compared with $70 million in February. loans between banks and their affiliates, increased Member bank excess reserves declined but borrow­ substantially further in March. Over the first ings also dropped slightly. quarter, growth averaged about $5 billion per month—more than twice the average monthly SECURITY MARKETS expansion in the fourth quarter of 1970. Growth in holdings of municipal and Federal agency issues Treasury bill rates increased by around 65 to 80 —which had slackened in February—accelerated basis points from mid-March to mid-April. The in March and holdings of U.S. Treasury issues 3-month bill was bid at around 4.05 per cent in increased substantially further partly in asso­ mid-April compared with 3.30 per cent a month ciation with Treasury financing operations. Expan­ earlier. Yields on intermediate-term Government sion in loans slowed in March, principally because securities also advanced sharply over the same of weakness in business loans. period—generally by about half a percentage The money stock increased sharply further in point—while long-term Treasury bond yields March—at an annual rate of 10.5 per cent. Ex­ changed little. pansion over the first quarter was at an annual Yields on new corporate bond issues remained rate of 8.6 per cent compared with rates of 3.4 steady from mid-March to early April but then per cent in the fourth quarter of 1970 and 6.1 increased. Municipal bond yields rose but still per cent in the third. Time and savings deposits remained below early March yields. also continued to increase substantially, rising over Prices on common stocks were relatively steady $5 billion in March. Inflows of consumer type until late in the period and then rose. PRICES INTEREST RATES Wholesale Consumer 1967=100 PER CENT 120 no 100 90 120 110 100 90 Bureau of Labor Statistics. “Farm products and foods” is Discount rate, range or level for all F.R. Banks. Weekly aver­ BLS “Farm products, and processed foods and feeds.” Latest age market yields for U.S. Govt, bonds maturing in 10 years figures: Consumer, February; Wholesale, March. or more and for 90-day Treasury bills. Latest figures: week ending April 9. 364 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 interest 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 stock A 18 Bank reserves; bank credit A 19 Banks and the monetary system A 20 Commercial banks, by classes 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 □ APRIL 1971 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 Number of banks and branches in operation on De­ cember 31, 1970 A 103 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation 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 III, IV Quarters U Uses of funds * Amounts insignificant 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 stances: (1) to the right (to the left) of a total when cal subdivisions. 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........................................ Mar. 1971 A-71.1—A-71.9 Banks and branches, number, by class and State.......................................Apr. 1971 A-94—A-95 Semiannually Flow of funds: Banking offices: Assets and liabilities: Analysis of changes in number___ Feb. 1971 A-96 1959-70................................................Mar. 1971 A-71.10—A-71.21 On, and not on, Federal Reserve Flows: Par List, number........................... Feb. 1971 A-97 1966-70................................................Mar. 1971 A-70—A-71.9 Annually Income and expenses: Federal Reserve Banks........................Feb. 1971 A-94—A-95 Bank holding companies: Insured commercial banks................Aug. 1970 A-98 List of, Dec. 31, 1969...................... June 1970 A-94 Member banks: Banking offices and deposits of Calendar year....................................Aug. 1970 A-98—A-107 group banks, Dec. 31, 1969. . . . Aug. 1970 A-95 Income ratios...................................Aug. 1970 A-108—A-113 Operating ratios................................Aug. 1970 A-114—A-119 Banking and monetary statistics, 1970..................................................... Feb. 1971 A-98—A-99 Stock exchange firms, detailed debit Mar. 1971 A-94—A-106 and credit balances...............................Sept. 1970 A-94—A-95 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases............................................................................ Dec. 1970 A-100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ APRIL 1971 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 Dis­ Gold Drawing cur­ u H n e d l e d r co a u n n d ts Float 2 O F t . h R e . r stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ ad­ assets 3 account stand­ Total out­ chase vances ing right agree­ ment Averages of daily figures 1939—Dec............................. 2,510 2,510 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—De c 52,529 52,454 75 765 3,251 56,610 10.367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10.367 6,841 1970—Ma r 55,780 55,695 85 936 2,551 2,061 61,388 11.367 345 6,891 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............................. 59,544 59,255 289 849 2,446 1,248 64,134 11.367 400 7,009 Sept............................ 59,903 59,625 278 607 2,832 1,216 64,619 11,300 400 7,049 Oct............................. 59,533 59,360 173 462 2.933 1,734 64.708 11.117 400 7,069 Nov............................ 60,393 60.004 389 425 2.933 1,314 65,132 11.117 400 7,100 Dec............................. 61,688 61,310 378 321 3,570 1,032 66.708 11,105 400 7,145 1971 _ jan.............................. 62,068 61,941 127 370 3,636 1,216 67,363 10.732 400 7,157 Feb.............................. 62,350 62,051 299 328 2,974 1,065 66,797 10.732 400 7,188 Mar.P......................... 62,719 62,381 338 319 2,644 896 66,664 10.732 400 7,235 Week ending— 1971—Jan. 6..................... 62,477 62,091 386 407 4,393 1 ,164 68,538 10.732 400 7,148 13..................... 62,110 62,110 277 3,718 1,182 67,347 10.732 400 7,151 20..................... 61,970 61,874 96 472 3,910 1,222 67,643 10.732 400 7,155 27..................... 61,889 61,809 80 354 3,022 1,256 66,586 10.732 400 7,164 Feb. 3....................... 61,956 61,783 173 283 2,620 1,264 66,201 10.732 400 7,172 10....................... 61,769 61,722 47 247 3,163 1,284 66,528 10.732 400 7,177 17....................... 62,936 62,161 775 561 2,632 1,166 67,401 10.732 400 7,189 24....................... 62,350 62,152 198 250 3,472 797 66,944 10.732 400 7,195 Mar. 3....................... 62,627 62,479 148 258 2,723 844 66,520 10.732 400 7,210 10....................... 62,206 62,169 37 421 2,906 829 66,414 10.732 400 7,223 17....................... 63,032 62,301 731 290 2,549 879 66,867 10.732 400 7,230 24^..................... 62,510 62,423 87 333 2,862 922 66,708 10.732 400 7,242 31 p..................... 63,076 62,581 495 257 2,525 966 66,917 10.732 400 7,255 End of month 1971—Jan.............................. 61,783 6 61,783 308 2,750 1,267 66,167 10.732 400 7,172 Feb............................. 62,462 6 62,462 263 2,832 832 66,443 10.732 400 7,213 Mar.p......................... 64,345 6 62,841 1,504 391 2,513 997 68,384 10.732 400 7,263 Wednesday 1971—Jan. 6. 62,140 6,761,785 355 288 4,874 1,159 68,613 10.732 400 7.150 13. 62,110 6 62,110 273 3,058 1,202 66,706 10.732 400 7.151 20. 62,701 6 62,033 668 1,522 3,029 1,248 68,612 10.732 400 7,160 27. 62,044 6 61 ,883 161 740 2,978 1,270 67,100 10.732 400 7,165 Feb. 3. 61,951 6 61,783 168 242 ,370 1,261 65,909 10.732 400 7.176 10. 60,647 6.760,647 255 510 1,314 64.780 10.732 400 7.177 17. 64,461 662,280 2,181 1,598 ,679 839 69,793 10.732 400 7,191 24. 61,700 6,761,700 251 ,076 804 65,883 10.732 400 7,201 Mar. 3p. 62,767 662,490 277 262 2,793 867 66.780 10.732 400 7,212 m . 62,495 662,233 262 1,521 2,435 861 67,387 10.732 400 7,225 IIP. 63,054 662,301 753 566 2,671 921 67,360 10.732 400 7,238 24p. 62,455 662,405 50 819 2,178 981 66,494 10.732 400 7,249 31*. 64,345 662,841 1,504 391 2,513 997 68,384 10.732 400 7,263 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank Cur­ reserves, Other reserves Period or date re c i n i n r c ­ y T c u r a e r s a y h s­ with F.R. Banks O F a t . c h R ­ e . r b F i l l . i i R a ti ­ e . s c t u io la n ­ h i o ng ld s ­ Tr u e r a y s­ F ei o g r n ­ Other2 counts3 ca a p n it d a l 3 B W F a . n R it k h . s c r C e a o n n u i c n d r y ­ 5 Total Averages of daily figures 7,609 2,402 616 739 248 11,473 11.473 .........................1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .........................1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 .........................1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .........................1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .........................1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 .........................1965—Dec. 44,579 1,191 291 164 429 83 19,568 4,262 23,830 .........................1966—Dec. 47,000 1,428 902 150 451 -204 20,753 4,507 25,260 .........................1967—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .........................1968—Dec. 53,591 656 ,194 146 458 2,192 23,071 4,960 28,031 ........................1969—Dec. 52,412 575 1,148 219 763 2,134 22,740 4,733 27.473 .........................1970—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 54,736 451 1,058 177 830 2,275 23,353 4,996 28,349 .....................................Aug. 54,931 457 1,070 141 750 2,300 23,719 5,106 28,825 ......................................Sept. 55,063 459 1,042 142 747 2,249 23,593 5,108 28,701 .......................................Oct. 55,864 453 890 149 721 2.256 23,416 5,142 28,558 .....................................Nov. 57,013 427 849 145 735 2,265 23,925 5,340 29,265 ......................................Dec. 56,192 445 1,028 155 786 2,109 24,938 5,550 30,488 ..........................1971—Jan. 55,754 465 1,025 153 778 2,232 24,710 5,170 29,880 ......................................Feb. 56,123 467 783 139 718 2,227 24,574 5,098 29,672 ......................................Mar.* Week ending— 57,021 430 973 154 1,053 2,006 25,181 5,430 30,611 ......................1971—Jan. 6 56,654 430 1,039 158 711 2,061 24,578 5,664 30,242 ..........................................13 56,099 440 925 158 718 2,120 25,470 5,559 31,029 ..........................................20 55,585 465 1,184 159 737 2,169 24,583 5,589 30,172 ..........................................27 55,442 468 900 143 807 2,237 24,510 5,449 29,959 ................................Feb. 3 55,664 466 1,163 147 771 2,300 24,326 5,434 29,760 ..........................................10 55,946 465 1,226 157 759 2,097 25,073 5,129 30,202 ..........................................17 55,816 463 816 155 759 2,243 25,019 4,897 29,916 ..........................................24 55,719 469 924 138 768 2,321 24,522 5,020 29,542 ..............................Mar. 3 56,000 467 1,044 136 732 2,379 24,011 5,393 29,404 ..........................................10 56,300 463 547 141 742 2,139 24,897 5,058 29,955 ..........................................17 56,213 465 743 121 698 2,141 24,700 4,801 29,501 ..........................................24* 56,110 475 806 162 694 2,198 24,860 5,119 29,979 ..........................................31* End of month 55,348 467 976 129 769 2,217 24,565 5,449 30.014 ..........................1971—Jan. 55,611 471 1,064 147 776 2,309 24,409 5,022 29,431 ......................................Feb. 56,294 481 858 201 794 2,255 25,895 5,119 31.014 ......................................Mar.* Wednesday 56,889 429 1,105 154 723 2,032 25,563 5,423 30,986 ....................1971—Jan. 6 56,539 435 587 136 719 2,098 24,476 5,666 30,142 ...........................................13 55,909 458 608 185 713 2,151 26,879 5,560 32,439 ...........................................20 55,586 471 1,237 155 717 2,188 25,043 5,589 30,632 ...........................................27 55,591 468 1,112 161 802 2,260 23,822 5,449 29,271 ................................Feb. 3 55,929 470 1,742 129 721 2,318 21,780 5,445 27,225 ..........................................10 56,069 468 485 172 762 2,214 27,946 5,134 33,080 ..........................................17 55,828 465 1,350 153 710 2,261 23,449 4,896 28,345 ..........................................24 55,897 469 960 114 740 2,355 24.589 5,013 29,602 ................................Mar. 3* 56,270 469 1,203 134 745 2,402 24,522 5,441 29,963 ..........................................10* 56,363 460 363 134 718 2,103 25.589 5,065 30,654 ...........................17* 56,220 479 926 146 669 2,180 24,255 4,801 29,056 ..........................................24* 56,294 481 858 201 794 2,255 25,895 5,119 31,014 ..........................................31* 1 Includes Federal agency obligations. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning with 1960 reflects a minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 1961 Bulletin, p. 164. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. of-business figures for reserve period 2 weeks previous to report date. liabilities and capital” are shown separately; formerly, they were 6 Includes securities loaned—fully secured by U.S. Govt, securities netted together and reported as “Other F.R. accounts.” pledged with F.R. Banks. 4 Includes industrial loans and acceptances, until Aug. 21, 1959, when 7 Reflects securities sold, and scheduled to be bought back, under industrial loan program was discontinued. For holdings of acceptances matched sale/purchase transactions. on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ APRIL 1971 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o el t d al qu R ir e e ­ d i Excess B r F i o a n a . n w R g t k s ­ . s se r r e v ­ es T h o e t ld al qu R ir e e ­ d ] B r F i o a n . a n w g R t k s . ­ s se F r r r v e e e ­ e s T h o e t l a d l qu R ir e e ­ d B r F i a o n . a n w R g t k s . ­ s 1939—Dec............... 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............... 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1.143 848 295 295 1945—Dec............... 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............... 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1.199 1,191 3 1960—Dec............... 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 -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 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—Dec............... 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1 ,285 1,267 1 27 1970—Mar.............. 27,473 27,358 115 896 -781 5,349 5,344 5 153 -148 1,265 1,249 16 31 -15 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 c —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 5,306 9 269 -260 1,290 1,293 -3 129 -132 Aug.............. 28,349 28,204 145 827 -682 5,378 3 159 -156 1,298 1,304 -6 61 -67 Sept.............. 28,825 28,553 272 607 -335 5,436 61 117 -56 1,316 1,310 6 14 -8 Oct............... 28,701 28,447 254 462 -208 5,542 41 12 29 1,307 1,309 -2 11 -13 Nov.............. 28,558 28,438 120 425 -305 5,444 -3 60 -63 1,282 1,283 11 -12 Dec............... 29,265 28,993 272 321 -49 5,589 34 25 9 1,329 1,322 4 3 1971—Jan................ 30,488 30,209 279 370 -91 5,976 5,917 59 40 19 1,387 1,392 1 -6 Feb............... 29,880 29,679 201 328 -127 5,854 5,810 44 29 15 1,403 1,380 4 19 Mar.p....... 29,672 29,493 179 319 -140 5,662 5,703 -41 51 -92 1,377 1,390 16 -29 Week ending— 1970—Mar. 4----- 27,462 27,264 198 836 -638 5,309 5.288 86 -65 1,213 1,238 -25 7 -32 11... . 27,233 27,162 71 932 -861 5,300 5.326 169 -195 1.255 1,247 8 9 -1 18. ... 27,631 27,481 150 817 -667 5,434 5,429 146 _141 1.255 1,266 -11 7 -18 25.... 27,472 27,376 96 936 -840 5,338 5,312 102 -76 1,240 1,225 15 97 -82 Sept. 2 . . . . 28,37C 28,192 178 660 -482 5,303 5.288 79 -64 1.277 1.276 1 1 9----- 28,931 28,516 415 763 -348 5,539 5,450 187 -98 1.311 1 ,293 18 -11 16. ... 28,921 28,565 356 500 -144 5,599 5,478 121 89 32 1,302 1.326 -24 -24 23___ 28,394 28,441 -47 460 -507 5,296 5,380 -84 78 -162 1,315 1,289 26 12 14 30.... 29,034 28,762 272 661 -389 5,581 5,476 105 103 2 1,319 1,340 -21 18 -39 Oct. 7 . . .. 28,786 28,434 352 398 -46 5,615 5.568 47 47 1,337 1,312 25 25 14.... 28,464 28,423 41 450 -409 5,550 5,563 -13 -34 1,336 1 ,343 -7 21 -28 21___ 28,890 28,701 189 586 -397 5,682 5,666 16 -5 1,287 1,314 -27 29 -56 28..•• 28,447 28,256 191 433 -242 5,417 5,399 18 7 1.301 1.276 25 25 Nov. 4... . 28,652 28,334 318 423 -105 5,571 5,475 96 85 1,298 1,291 7 12 -5 11 ... . 28,725 28,443 282 445 -163 5,488 5,466 22 -47 1 ,298 1,319 -21 -21 18.... 28,763 28,599 164 330 -166 5,588 5,558 30 30 1,308 1,301 7 7 25.... 28,373 28,297 76 436 -360 5,266 5.327 -61 -150 1,231 1,237 -6 18 -24 Dec. 2.... 28,875 28,458 417 455 -38 5,54C 5,391 149 60 1.277 1,270 7 18 9.. . . 28,718 28,582 136 290 -154 5,387 5,438 -51 -51 1.312 1,303 9 16... . 29,038 28,918 120 399 -279 5,634 37 -22 1.302 1.327 -25 18 -43 23. . . . 29,298 29,088 210 325 -115 5,602 -28 -67 1,341 1,330 11 11 30.... 29,843 29,409 434 270 164 5,693 150 150 1,362 1,332 30 30 1971—Jan. 6.... 30,611 30,035 576 407 169 5,902 162 91 1,396 1,411 -15 -15 13.... 30,242 30,210 32 277 -245 5,910 -60 -60 1,402 1,384 18 18 20. . .. 31,029 30,937 92: 472: -380 6,198 -33 -125 1,424 1,464 -40 -45 27___ 30,172 29,89Ci 282: 354^ -72 5,752 5,760 -34 1,373 1,335 38 38 Feb. 3 . . .. 29,959 29,722: 231 2831 -46 5,775 5,742 33 33 1,331 1,346 -15 -15 10___ 29,76C 29,555i 205; 241r -42 5,685 5,755 -70 -70 1,379 1.367 12 12 17.... 30,202 29,905i 291' 561 -264 6,118 6,043 75 117 -42 1,367 1,388 -21 -39 24.... 29,916 29,599> 311* 25C) 67 5,770 5,732 38 38 1,417 1,386 31 31 Mar. 3.... 29,542 29,37:I 11() 2581 -88 5,583 5.568 15 15 1.387 1,402 -15 -15 10.... 29,404 29,32:i 8:> 4211 -339 5,595 5,657 -62 120 -182 1,355 1.367 -12 44 -56 17..... 29,955 29,69() 26f5 29() -25 5,853 5,830 23 46 -23 1,447 1,419 28 +28 2 3 4 1p v. . . . . . . 2 2 9 9 , ,5 97 01 $ 2 2 9 9, , 5 4 5 3 < * ) j 42 6 ( :5 ) 2 33 5 ; : 5 J -2 1 7 6 0 3 5 5 , , 6 8 5 3 4 2 5 5 , , 6 7 6 1 9 4 - 1 1 1 5 8 59 - 1 7 1 4 8 1 1 , . 3 3 6 8 0 7 1 1, , 3 3 7 9 9 0 -30 1 1 4 4 -4 -6 4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow­ Reserves Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves T h o el t d al Required * Excess Banks T h o e t ld al Required1 Excess Banks 3,140 1,953 1 188 1,188 1,568 897 671 3 668 .........................1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ..............................1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ..............................1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 ..............................1950—Dec. 7,950 7,851 100 20 80 6,689 6,066 623 40 583 ..............................1960—Dec. 8,393 8,325 68 190 -122 7,347 6,939 408 74 334 ..............................1963—Dec. 8,735 8,713 22 125 -103 7,707 7,337 370 55 315 ..............................1964—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 ..............................1965—Dec. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 ..............................1967—Dec. 10,990 10,900 90 270 -180 9,875 9,625 250 180 70 .............................1968—Dec. 10,970 10,964 6 479 -473 10,335 10,158 177 321 -144 ..............................1969—Dec. 10,737 10,802 -65 436 -501 10,122 9,963 159 276 -117 .............................1970—Mar. 11,038 11,066 -28 372 -400 10,281 10,143 138 162 -24 10,978 10,948 30 477 -447 10,340 10,192 148 300 -152 10,849 10,847 2 489 -487 10,267 10,122 145 267 -122 11,074 11,118 -44 682 -726 10,449 10,270 179 278 -99 ...........................................July 11,174 11,178 -4 424 -428 10,496 10,344 152 183 -31 11,407 11,375 32 369 -337 10,605 10,432 173 107 66 11,319 11,270 49 338 -289 10,492 10,326 166 101 65 11,216 11,274 -58 301 -359 10,619 10,437 182 53 129 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 11,974 11,962 12 294 -282 11,151 10,938 213 35 178 ..............................1971—Jan. 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 11,708 11,653 55 236 -181 10,925 10,747 178 16 162 Week ending— 10,773 10,751 22 404 -382 10,167 9,987 180 339 -159 .......................1970—Mar. 4 10,644 10,722 -78 530 -608 10,034 9,867 167 224 -57 ...............................................11 10,866 10,866 394 -394 10,076 9,920 156 270 -114 ...............................................18 10,781 10,833 -52 458 -510 10,113 10,006 107 279 -172 ...............................................25 11,232 11,242 -10 402 -412 10,558 10,386 172 179 -7 11,509 11,424 85 430 -345 10,572 10,349 223 117 106 ............................................... 9 11,445 11,376 69 317 -248 10,575 10,385 190 94 96 ...............................................16 11,241 11,328 -87 320 -407 10,542 10,444 98 50 48 ...............................................23 11,406 11,393 13 386 -373 10,728 10,553 175 154 21 ...............................................30 11,349 11,253 96 308 -212 10,485 10,301 184 90 94 ....................................Oct. 7 11,168 11,278 -110 337 -447 10,410 10,239 171 71 100 ...............................................14 11,446 11,376 70 405 -335 10,475 10,345 130 131 -1 ...............................................21 11,183 11,203 -20 305 -325 10,546 10,378 168 117 51 ...............................................28 11,215 11,188 27 314 -287 10,568 10,380 188 86 102 11,383 11,326 57 311 -254 10,556 10,332 224 65 159 ..............................................11 11,313 11,343 -30 296 -326 10,554 10,397 157 34 123 11,215 11,206 9 288 -279 10,661 10,527 134 41 93 ...............................................25 11,325 11,269 56 301 -245 10,733 10,528 205 47 158 11,363 11,356 7 263 -256 10,656 10,485 171 27 144 ............................................... 9 11,415 11,460 -45 294 -339 10,650 10,497 153 28 125 ...............................................16 11,611 11,564 47 261 -214 10,772 10,592 180 25 155 ...............................................23 11,682 11,666 16 245 -229 10,956 10,718 238 25 213 ...............................................30 12,028 11,903 125 310 -185 11,123 10,819 304 26 278 ........................1971—Jan. 6 11,912 11 ,996 -84 249 -333 11,078 10,920 158 28 130 ...............................................13 12,214 12,246 -32 332 -364 11,226 11,029 197 43 154 ...............................................20 11,862 11,800 62 286 -224 11,185 10,995 190 42 148 ...............................................27 11,766 11,759 7 253 -246 11,087 10,875 212 30 182 .....................................Feb. 3 11,728 11,702 26 229 -203 10,968 10,731 237 18 219 ...............................................10 11,733 11,753 -20 380 -400 10,984 10,721 263 46 217 ...............................................17 11,744 11,673 71 228 -157 10,985 10,808 177 22 155 ...............................................24 11,633 11,655 -22 242 -264 10,939 10,747 192 16 176 11,537 11,572 -35 244 -279 10,917 10,726 191 13 178 ...............................................10 11,774 11,724 50 231 -181 10,881 10,717 164 13 151 ...............................................17 11,593 11,609 -16 246 -262 10,894 10,770 124 14 110 ...............................................24 p 11,805 11,690 115 221 -106 10,955 10,776 179 22 157 ...............................................31* 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 □ APRIL 1971 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 week a e n n d ding— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s s . F t f i b e r n u N a d a n t n n e e e d s t r r k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q s a r e u o v c r g i f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n t w a n s l a ­ s y 2 b c b o P u h a f y a u n n s i r k n e e ­ s g s t s o b S e a f l a n l l n i e k n e s s g t d L ea o t l o a e n r s s3 de f r B i r a o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 1971—Feb. 3........... 76 6,346 -6,270 48.7 9,345 2,999 2,726 6,619 272 3,083 106 2,977 10........... 27 7,693 -7,666 59.5 10,459 2,766 2,662 7,797 104 3,158 99 3,058 17........... 41 235 7,094 -7,287 55.1 10,437 3,343 3,257 7,180 86 1,996 263 1,733 24........... 170 6,509 -6,339 49.3 10,049 3,539 3,407 6,642 133 2,134 234 1,899 Mar. 3........... 72 1 6,434 -6,363 50.3 9,575 3,142 2,974 6,601 168 2,439 218 2,220 10........... -20 159 7,369 -7,548 59.6 10,657 3,288 3,080 7,577 209 2,505 200 2,305 17........... 66 46 6,906 -6,885 53.0 10,003 3,097 2,892 7,111 205 1,926 200 1,727 24........... 67 6,732 -6,807 53.5 9,775 3,043 2,740 7,034 302 2,005 325 1,679 31........... 18 5,934 -5,779 45.0 8,998 3,065 2,687 6,312 378 1,879 440 1,439 8 in New York City 1971—Feb. 3........... 44 1,784 -1,740 33.5 2,936 1,152 958 1,978 194 1,762 102 1,660 10........... -27 2,551 -2,578 49.4 3,349 798 755 2,594 43 1,668 89 1,579 17........... 43 114 3,215 -3,286 59.7 3,989 774 774 3,215 1,230 192 1,037 24........... 81 2,410 -2,330 44.7 3,550 1,140 1,092 2,458 1,296 137 1,160 Mar. 3........... 65 2,365 -2,300 45.6 3,263 860 2,402 1,554 148 1,406 10........... -10 108 3,087 -3,205 62.5 3,864 776 687 3,177 1,513 135 1,378 17.......... 19 46 2,737 -2,764 52.2 3,509 772 772 2,737 1,269 142 1,127 24.......... 16 52 2,936 -2,973 57.8 3,548 611 612 2,936 1,316 101 1,215 31.......... 147 2,713 -2,566 49.5 3,419 706 657 2,762 49 1,252 173 1,079 38 outside New York City 1971—Feb. 3. 4,562 -4,530 59.0 6,409 1,847 1,768 4,641 79 1,322 4 1,318 10. 5,141 -5,088 66.4 7,110 1,968 1,907 5,203 61 1,490 10 1,479 17. 3,879 -4,002 51.9 6,448 2,569 2,483 3,965 86 766 71 695 24. 4,099 -4,010 52.5 6,499 2,399 2,315 4,184 85 837 97 740 Mar. 3. 4,069 -4,064 53.3 6,313 2,244 2,114 4,199 130 885 71 815 10. 4,281 -4,343 57.6 6,794 2,512 2,393 4,400 119 992 65 926 17. 4,169 -4,122 53.5 6,494 2,325 2,120 4,374 205 658 58 600 24. 3,796 -3,834 50.6 6,227 2,431 2,129 4,098 302 689 224 465 31. 3,221 -3,213 42.0 5,580 2,359 2,029 3,550 330 626 267 360 5 in City of Chicago 1971—Feb. 3. -4 1,286 -1,291 105.4 1,598 311 287 1,310 24 114 114 10. 9 1,468 -1,459 117.3 1,800 332 292 1,509 41 113 113 17. - 12 904 -933 73.6 1,458 554 518 939 35 85 85 24. 19 1,269 -1,251 99.0 1,634 365 344 1,290 20 102 102 Mar. 3. . 7 1,317 -1,311 102.6 1,701 384 359 1,343 26 93 93 10. . -7 44 1,340 -1,391 111.9 1,753 413 376 1,377 37 115 115 17. . 16 1,426 -1,411 109.0 1,884 457 389 1,495 68 68 68 24. . 1,158 -1,172 94.4 1,592 435 389 1,203 46 90 90 31. . 1,060 -1,066 85.0 1,404 344 295 1,109 49 106 106 33 others 1971—Feb. 3. 36 3,276 -3,240 50.2 4,811 1,535 1,481 3,331 55 1,207 4 1,204 10. 45 3,674 -3,629 56.6 5,310 1,636 1,615 3,694 20 1,376 10 1,366 17. 10 103 2,975 -3,068 47.6 4,990 2.015 1,964 3,026 51 681 71 610 24. 71 2,830 -2,759 43.3 4,865 2,035 1,971 2.894 65 735 97 638 Mar. 3. 1 2,752 -2,753 43.4 4.611 1,859 1,756 2,856 104 793 71 722 10. -3 2,941 -2,952 46.9 5,040 2,099 2,017 3,023 82 877 65 812 17. 32 2,743 -2,711 42.3 4.611 1,868 1,731 2,879 137 590 58 533 24. -24 2,638 -2,663 42.0 4,635 1,997 1,740 2.895 257 599 224 375 31. 17 2,161 -2,148 33.6 4,176 2.015 1,734 2,442 281 520 267 253 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

APRIL 1971 □ F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Advances to and discounts for member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 133 Federal Reserve Bank Secs. 13 and 13a i Sec. 10(b) 2 M Ra 1 a t 9 r e 7 . 1 o 31 n , Ef d fe a c t t e ive Pre r v at i e ous M Ra 1 a t 9 r e . 7 1 3 o 1 n , Eff d e a c t t e ive Pre ra v t i e ous M Ra 1 a t 9 r e . 7 1 3 o 1 n , Ef d fe a c t t e ive Pre r v at io e us 4V4 Feb. 13, 1971 5 51/4 Feb. 13, 1971 51/2 6V4 Feb. 13, 1971 7 New York............................................ 43/4 Feb. 19, 1971 5 51/4 Feb. 19,1971 5 Vi 6V4 Feb. 19,1971 7 Philadelphia........................................ 4% Feb. 13, 1971 5 5Ya Feb. 13,1971 5 Vi 6V4 Feb. 13, 1971 7 Cleveland............................................ 4Va Feb. 13, 1971 5 5Va Feb. 13, 1971 51/2 63/4 Feb. 13, 1971 7 Richmond............................................ 4Va Feb. 13, 1971 5 51/4 Feb. 13, 1971 51/2 6V4 Feb. 26,1971 7 Atlanta................................................. 4Va Feb. 13, 1971 5 51/4 Feb. 13,1971 51/2 63/4 Feb. 13, 1971 7 Chicago................................................ 41/4 Feb.13 1971 5 51/4 Feb. 13, 1971 5 Vi 63,4 Feb. 13, 1971 7 St. Louis.............................................. 43/4 Feb. 13, 1971 5 51/4 Feb. 13, 1971 51/2 634 Feb. 13,1971 7 Minneapolis........................................ 4% Feb.13,1971 5 51/4 Feb. 13, 1971 51/2 63/4 Feb.13,1971 7 Kansas City........................................ 43/4 Feb.13,1971 5 5Ya Feb. 13, 1971 5 Vi 6V4 Feb. 13, 1971 7 Dallas................................................... 43/4 Feb. 13, 1971 5 51/4 Feb. 13, 1971 51/2 63/4 Feb. 13, 1971 7 San Francisco..................................... 41/4 Feb. 13,1971 5 5V4 Feb. 13, 1971 51/2 63^ Feb. 13,1971 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 F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers’ acceptances and of agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully 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. SUMMARY OF EARLIER CHANGES (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, 1945........ f 1/2 V4 1957—Aug. 2 9 3 . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 3 31 - /2 31/2 3 3 1/2 1965—Dec. 1 6 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 - /2 41/2 4 4 1 1 / / 2 2 1946—Apr. 25..................... t V2-I l Nov. 15..................... 3 -31/2 3 May 10..................... 1 1 Dec. 2..................... 3 3 1967—Apr. 7..................... 4 -41/2 4 14..................... 4 4 1948—Jan. 12..................... 1 -Wa Wa 1958—Jan. 22................... 234-3 3 Nov. 20..................... 4 -41/2 41/2 19..................... Wa Wa 24..................... 234-3 234 27..................... 41/2 41/2 Aug. 13..................... IVi-IVi IVi Mar. 7..................... 214-3 21/4 23..................... ivi IV2 2 1 1 3. . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 21 2 4- % 234 2 21 Y /4 a 1968—Mar. 2 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41/ 5 2-5 4 5 Vi 1950—Aug. 21..................... ivi-m 1 v4 Apr. 18..................... 134-214 13/4 Apr. 19..................... 5 -51/2 51/2 25..................... Wa iy4 M Au a g y . 1 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 l 4 3 - / 2 4 W 13/ a 4 Aug. 2 1 6 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 5 4 1 - / 5 2 1/2 5 51 V /2 i 1953—Jan. 16..................... 134-2 2 Sept. 12..................... 134-2 2 30..................... 5va 51/4 23..................... 2 2 23..................... 2 2 Dec. 18..................... 5%-5Vi 51/2 Oct. 24..................... 2 -21/2 2 20..................... 51/2 5 Vi 1954— A Fe p b r . . 1 1 5 5 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I 1 V 3 2 1 ^ - % - I 2 V4 W 1 W % a a 1959— N M o a v r . . 7 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21/ 2 2 1 - / 3 2 2 3 Vi 1969—Apr. 4 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51/ 6 2-6 6 6 May 2 1 1 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1* I 4 V -1 2 % W W 2 2 May 2 1 9 6. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . 3 3 -31/2 3 3 1/2 1970—Nov. 1 1 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 3 3/ / 4 4- - 6 6 5 6 3/4 1955— N S A A M e o u p a p g v r y t . . . . 2 1 1 1 1 1 9 2 4 5 3 2 3 8 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 1 l 1 1 V 1 3 3 / 2 4 2 / 4 4 1 2 2 1 - - - V V - - - 2 2 - 2 2 4 2 4 1 i l 1 1 1 1 1 3 3/ / 4 4 4 4 ^ 4 2 2 2 2 2 2 2 W l W W 1 V 1 1 3/ / 4 4 2 4 a a 2 i 1 1 9 9 6 6 3 0 — — J S A J J S u u u e e u l n n p p y g e t e t . . . 1 1 1 1 1 1 1 9 7 3 2 4 0 8 1 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 3 1 1 1 / / / 3 4 3 3 2 2 2 1 - 1 - - - - 3 / / 2 4 4 4 3 2 1 1 / / 2 2 4 3 4 4 3 3 3 3 3 1 1 1 V / / / 2 2 2 i 1971— J D a e n c . . 2 2 1 1 1 1 4 8 9 2 9 1 5 1 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 5 5 V 1 1 / / 5 5 5 5 4 2 2 1 1 3 - - - - - / / 5 / 5 5 5 5 4 2 4 3 3 V 1 1 / / 4 4 2 4 4 5 5 5 5 5 5 5 5 5 1 1 3 1 1 3 1 / / / / / / 4 4 4 4 4 2 2 1956—Apr. 13..................... 21/2-3 234 26..................... 31/2 31/2 Feb. 13..................... 434-5 5 20..................... 234-3 234 19..................... 434 434 Aug. 24..................... 23/4-3 3 1964—Nov. 24..................... 31/2-4 4 31..................... 3 3 30..................... 4 4 In effect Mar. 31, 1971 .... 4 H 4 M f Preferential rate of Vi of 1 per cent for advances secured by U.S. Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15: Nov. 10, 2.375; 1956—Aug. Govt, obligations maturing in 1 year or less. The rate of 1 per cent was 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, continued for discounts of eligible paper and advances secured by such 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July paper or by U.S. Govt, obligations with maturities beyond 1 year. 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, Note.—Rates under Secs. 13 and 13a (as described in table and notes 28, 30, 31, 3.875; 1965—Jan. 4-8, 3.875; 1968—Apr. 4, 5,11,15,16, 5.125; above). For data before 1946, see Banking and Monetary Statistics, 1943, Apr. 30, 5.75; May 1-3, 6, 9, 13-16, 5.75; June 7, 11-13, 19, 21, 24, 5.75; pp. 439-42 and Supplement to Section 12, p. 3. July 5, 16, 5.625; Aug. 16, 19, 5.25; 1971—Jan. 21, 27, 4.75; Feb. 1-2, The rate charged by the F.R. Bank of N.Y. on repurchase contracts 4.50; 4, 11, 4.25; 16-17, 4.00; 18-19, 3.75. Mar. 1-2, 10, 12, 15-18, 24, against U.S. Govt, obligations was the same as its discount rate except 29-31, 3.75. in the following periods (rates in percentages): 1955—May 4-6, 1.65; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ APRIL 1971 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4,5 deposits 2 deposits 2> * (all classes of banks) Time depos­ its Reserve Country Other Effective date * C re e c s n i e t t r y r v a e l s c R e i r t e v y ­ e C ba o tr n u y k n s ­ b cl a a ( o n a s k l s f l e s s ) Effective date 1 Un c d it e y r ban O k v s er Unde b r a nks Over d S e in i p a t g s v o s ­ s­ U ti n m d e e r d ep O os v it e s r banks banks $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ lion lion lion lion lion lion In effect Dec. 31,1949......... 22 18 12 5 1966—July 14,21........ 6 I6I/2 6 12 64 64 5 Sept. 8, 15........ 6 1951—Jan. 11,16................ 23 19 13 6 Jan. 25, Feb. 1.... 24 20 14 1967—Mar. 2............... 3% 3% 1953—July 9 i.................. 22 19 13 Mar. 16............... 3 3 1954—June 24, 16................ 21 5 July 29, Aug. 1.... 20 18 12 1968—Jan. 11,18........ I61/2 17 12 12% 1958—Feb. 27, Mar. 1.... 19Vi 17% IH/2 Mar. 20, Apr. 1___ 19 17 11 1969—Apr. 17............... 17 171/2 12% 13 Apr. 17....................... 18% Apr 24 ............... 18 16% 1970 Oct. 1................... 5 1960—Sept. 1....................... 17% Nov. 24....................... 12 In effect Mar. 31, 1971. 17 17% 12% 13 3 3 5 16% 1962—July 28....................... (3) Present legal Oct. 25, Nov. 1.... 4 requirement: Minimum................... 10 7 3 3 3 Maximum................... 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central rowings above a specified base from foreign banks by domestic offices reserve or reserve city banks and the second to the change at country of a member bank. For details concerning these requirements, see Regula­ banks. For changes prior to 1950 see Board’s Annual Reports. tions D and M and appropriate supplements and amendments thereto. 2 Demand deposits subject to reserve requirements are gross demand 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation deposits minus cash items in process of collection and demand balances club accounts became subject to same requirements as savings deposits. due from domestic banks. 6 See preceding columns for earliest effective date of this rate. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. Note.—All required reserves were held on deposit with F.R. Banks 4 Since Oct. 16, 1969, member banks have been required under Regula­ June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member tion M to maintain reserves against balances above a specified base due banks were allowed to count part of their currency and coin as reserves; from domestic offices to their foreign branches. Effective Jan. 7, 1971, the effective Nov. 24, 1960, they were allowed to count all as reserves. For applicable reserve percentage was increased from the original 10 per cent further details, see Board’s Annual Reports. o 20 per cent. Regulation D imposes a similar reserve requirement on bor­ MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945--Feb. 4. 40 50 1945—Feb. 5 July 4. 50 50 July 5 1946--Jan. 20. 75 75 1946—Jan. 21 1947- -Jan. 31. 100 100 1947—Feb. 1 1949- -Mar. 29. 75 75 1949—Mar. 30 1951- -Jan. 16. 50 50 1951—Jan. 17 1953- -Feb. 19. 75 75 1953—Feb. 1955--Jan. 3. 50 50 1955—Jan. Apr. 22. 60 60 Apr. Jan. 15. 70 70 1958—Jan. 1958—Aug. 4. 50 50 Aug. Oct. 15. 70 70 Oct. 1960--July 27. 90 90 1960—July 1962--July 9. 70 70 1962—July 1963- -Nov. 5. 50 50 1963—Nov. 1968--Mar. 10. 70 70 1968—Mar. 11 June 7. 70 50 70 June 1970—May 5. 80 60 80 Effective May 6, 1970. 65 50 65 Note.—Regulations G, T, and U, prescribed in accordance with the Securities Exchange Act of 1934, limit the amount of credit to purchase and carry margin stocks that may be extended on securities as collateral by prescribing a maximum loan value, which is a specified percentage of the market value of the collateral at the time the credit is extended; margin requirements are the difference between the market value (100 per cent) and the maximum loan value. The term margin stocks is defined in the corresponding regulation. Regulation G and special margin requirements for bonds convertible into stocks were adopted by the Board of Governors effective Mar. 11, 1968. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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.............. 41/2 12 months or more. . 4 Other time deposits:2 Less than 12 months. 3 Vi Multiple maturity:3 30-89 days............ 4 4Vi 90 days-1 year. .. 5 1 year to 2 years.. 5 5Vi 2 years and over.. 5Va 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 6 months to 12 months 3% 4 Vi 2 years and over. . 5Va 90 days to 6 months.. , 21/2 $100,000 and over: Less than 90 days........ 1 4 30-59 days........... 5 Vi (4) (30-89 days) 60-89 days........... 53/4 (4) 90-179 days......... 5% 5 Vi 6 63/4 180 days to 1 year. / 7 1 year or more. .. }ey4 I 71/2 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 banks are 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 6% commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6Vi per cent 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 b k l e s r Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l b k 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 weeks ending Jan. 27, 1971 Four weeks ending Feb. 24, 1971 Gross demand—Total.... 193,260 44,165 7,989 68,160 72,946 Gross demand—Total... 187,458 43,725 7,886 65,509 70,338 Interbank........................ 26,673 12,068 1,525 10,012 3,068 Interbank....................... 25,578 11,845 1,459 9,414 2,860 U.S. Govt........................ 5,286 969 261 2,130 1,926 U.S. Govt...................... 7,268 1,471 381 2,792 2,624 Other............................... 161,301 31,128 6,203 56,019 67,952 154,612 30,409 6,046 53,303 64,854 Net demand 1..................... 145,755 27,608 6,257 51,465 60,425 Net demand 1................... 141,750 27,036 6,248 49,978 58,488 Time..................................... 182,494 21,528 6,284 67,870 86,813 Time................................... 186,456 21,860 6,518 69,152 88,926 Demand balances due Demand balances due from dom. banks........... 11,380 1,159 134 2,777 7,311 from dom. banks......... 10,859 1,185 132 2,632 6,910 Currency and coin............ 5,561 468 120 1,780 3,192 Currency and coin........... 5,227 443 98 1,627 3,059 Balances with F.R. Balances with F.R. 24,953 5,490 1,279 10,224 7,961 24,733 5,394 1,276 10,116 7,947 Total reserves held............ 30,514 5,958 1,399 12,004 11,153 Total reserves held.......... 29,960 5,837 1,374 11,743 11,006 Required.......................... 30,268 5,943 1,399 11,986 10,941 29,696 5,818 1,372 11,722 10,784 Excess.............................. 246 15 18 212 264 19 2 21 222 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 □ APRIL 1971 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1971 1971 1970 Mar. 31 Mar. 24 Mar. 17 Mar. 10 Mar. 3 Mar. 31 Feb. 28 Mar. 31 Assets Gold certificate account.................................................... 10,464 10,464 10,464 10,464 10,464 10,464 10,464 11,045 Special Drawing Rights certificate account................. 400 400 400 400 400 400 400 400 268 270 269 266 265 268 266 188 Discounts and advances: Member bank borrowings............................................ 391 819 566 1,521 262 391 263 684 Other................................................................................. Acceptances: Bought outright.............................................................. 53 51 50 47 47 53 54 52 Held under repurchase agreements............................. 85 10 98 28 44 85 Federal agency obligations—Held under repurchase 185 9 96 30 29 185 U.S. Govt, securities: Bought outright: Bills............................................................................... 25,638 25,479 25,437 25,437 25,694 25,638 25,801 20,897 Certificates—Other..................................................... Notes............................................................................. 34,031 33,825 33,777 33,718 33,718 34,031 33,624 32,073 Bonds............................................................................. 3,172 3,101 3,087 3,078 3,078 3,172 3,037 2,815 Total bought outright.................................................... i 62,841 i 62,405 i 62,301 i 62,233 i 62,490 i 62,841 i 62,462 55,785 Held under repurchase agreements............................. 1,319 41 657 232 248 1,319 Total U.S. Govt, securities............................................... 64,160 62,446 62,958 62,465 62,738 64,160 62,462 55,785 Total loans and securities.................................................. 64,874 63,335 63,768 64,091 63,120 64,874 62,779 56,521 * 9,855 p 9,514 p 11,278 * 9,851 p 10,954 * 9,855 9,579 9,205 134 134 134 133 133 134 131 116 Other assets: 33 33 33 33 107 33 107 1,169 IMF gold deposited 2.................................................... 159 159 159 159 159 159 159 210 All other........................................................................... 671 655 595 536 468 671 435 644 Total assets........................................................................... p 86,858 p 84,964 * 87,100 * 85,933 p 86,070 p 86,858 84,320 79,498 Liabilities F.R. notes............................................................................. 49,513 49,452 49,586 49,511 49,151 49,513 48,868 46,222 Deposits: Member bank reserves................................................... p 25,895 * 24,255 * 25,589 * 24,522 * 24,589 * 25,895 24,409 22,495 U.S. Treasurer—General account............................... 858 926 363 1,203 960 858 1,064 1,192 Foreign.............................................................................. 201 146 134 134 114 201 147 200 Other: IMF gold deposit 2.................................................... 159 159 159 159 159 159 159 210 All other....................................................................... 635 510 559 586 581 635 617 629 Total deposits...................................................................... * 27,748 * 25,996 * 26,804 * 26,604 p 26,403 p 27,748 26,396 24,726 Deferred availability cash items....................................... 7,342 7,336 8,607 7,416 8,161 7,342 6,747 6,378 Other liabilities and accrued dividends.......................... 546 537 525 537 554 546 535 523 Total liabilities..................................................................... * 85,149 * 83,321 * 85,522 * 84,068 * 84,269 * 85,149 82,546 77,849 Capital accounts Capital paid in..................................................................... 717 715 713 713 712 717 711 681 Surplus.................................................................................. 702 702 702 702 702 702 702 668 Other capital accounts....................................................... 290 226 163 450 387 290 361 300 Total liabilities and capital accounts.............................. * 86,858 p 84,964 * 87,100 * 85,933 * 86,070 p 86,858 84,320 79,498 Contingent liability on acceptances purchased for foreign correspondents.................................................. 255 259 260 261 265 255 266 170 Marketable U.S. Govt, securities held in custody foi foreign and international accounts3............................ 15,130 14,919 14,705 14,141 13,251 j 15,130 13,057 9,118 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank).. . 52,996 52,926 52,956 52,782 52,764 52,996 c 52,791 49,106 Collateral held against notes outstanding: Gold certificate account............................. 3,220 3,220 3,220 3,220 3,220 3,220 3,220 3,292 U.S. Govt, securities................................... 51,665 51,665 51,665 51,665 51,665 51,665 51,665 47,900 Total collateral. 54,885 54,885 54,885 54,885 54,885 54,885 54,885 51,192 1 See note 6 on p. A-5. 3 This caption valid beginning Sept. 16, 1970; figures prior to that 2 See note 1 (b) at top of p. A-75. date include both marketable and nonmarketable securities for foreign account only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1971 (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 ou t. is M ap i o n l n is e­ K C s a a it n s y ­ Dallas F c S i r s a a c n n o ­ Assets 10,464 460 1,686 811 848 977 574 1,889 339 230 375 336 1,939 Special Drawing Rights certif. acct.... 400 23 93 23 33 36 22 70 15 7 15 14 49 1,080 121 242 36 60 60 364 27 16 13 26 21 94 268 11 22 10 29 17 36 38 15 7 28 17 38 Discounts and advances: Secured by U.S. Govt, securities.... 97 26 39 * 3 * 26 * * 3 294 13 281 Acceptances: Bought outright.................................. 53 53 Held under repurchase agreements.. 85 85 Federal agency obligations—Held 185 185 U.S. Govt, securities: 162,841 3,149 16,040 3,264 4,871 4,712 3,073 10,160 2,365 1,240 2,454 2,929 8,584 Held under repurchase agreements.. 1,319 1,319 64,874 3,175 17,734 3,264 4,871 4,715 3,073 10,467 2,365 1,240 2,457 2,929 8,584 Cash items in process of collection... 12,598 699 2,346 659 926 925 1,258 2,031 610 431 834 806 1,073 134 2 8 3 15 11 17 17 13 13 18 9 8 Other assets: Denominated in foreign currencies.. 33 1 2 9 2 3 2 2 5 1 1 1 2 4 159 159 671 45 180 40 48 51 31 100 24 13 24 30 85 Total assets.............................................. 90,681 4,537 22,479 4,848 6,833 6,794 5,377 14,644 3,398 1,955 3,778 4,164 11,874 Liabilities F.R. notes................................................ 50,593 2,853 12,121 2,901 4,118 4,524 2,515 8,850 1,938 867 1,864 1,923 6,119 Deposits: Member bank reserves....................... 25,895 881 7,160 1,203 1,636 1,301 1,612 3,679 847 629 1,065 1,478 4,404 U.S. Treasurer—General account.. 858 49 203 85 71 66 64 42 45 32 54 19 128 Foreign.................................................. 201 8 4 79 8 15 8 11 25 6 4 7 9 21 Other: IMF gold deposit 3........................ 159 159 All other........................................... 635 * 587 2 14 2 6 * 1 2 2 19 Total deposits.......................................... 27,748 938 8,188 1,298 1,722 1,389 1,689 3,752 898 666 1,128 1,508 4,572 Deferred availability cash items.......... 10,085 640 1,575 533 800 748 1,037 1,697 484 374 694 617 886 Other liabilities and accrued dividends 546 27 149 28 42 38 26 85 20 11 20 24 76 Total liabilities........................................ 88,972 4,458 22,033 4,760 6,682 6,699 5,267 14,384 3,340 1,918 3,706 4,072 11,653 Capital accounts Capital paid in........................................ 717 33 188 37 65 37 49 107 24 16 31 40 90 Surplus....................................................... 702 33 185 36 63 36 47 105 24 16 30 39 88 Other capital accounts........................... 290 13 73 15 23 22 14 48 10 5 11 13 43 Total liabilities and capital accounts.. 90,681 4,537 22,479 4,848 6,833 6,794 5,377 14,644 3,398 1,955 3,778 4,164 11,874 Contingent liability on acceptances purchased for foreign correspond- 255 12 5 67 13 23 13 17 38 9 6 11 14 32 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to 52,996 3,014 12,844 2,981 4,286 4,653 2,751 9,122 2,027 898 1,948 2,054 6,418 Collateral held against notes out­ standing: Gold certificate account.................... 3,220 250 500 300 510 500 1,000 155 5 U S. Govt, securities......................... 51,665 2,840 12,600 2,800 3,900 4,210 2,900 8,450 1,930 930 1,975 2,130 7,000 Total collateral........................................ 54,885 3,090 13,100 3,100 4,410 4,710 2,900 9,450 2,085 930 1,975 2,135 7,000 1 See note 6 on p. A-5. 5 After deducting $188 million participations of other F.R. Banks. 2 After deducting $24 million participations of other F.R. Banks. 3 See note 1 (b) to table at top of page A-75. Note.—Some figures for cash items in process of collection and for 4 After deducting $122 million participations of other F.R. Banks. member bank reserves are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ APRIL 1971 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 p h r u a 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 p h r u a 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 p h r u a o s r s e ­ s s G sa r l o e s s s m re s a d h t o i e u f r m t r s i p , ty ­ c G h p r u a o s r s e ­ s s G sa r l o e s s s m E s a h x tu i c f r h ts i . ty tions 1970—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 1,612 641 2,449 1,612 641 23 146 July. 1,626 744 1,626 744 Aug. 1,127 106 1,127 106 -21 -129 Sept. 2.657 2,367 308 2,474 2,367 308 17 90 Oct. 245 183 134 245 183 134 Nov. 2,871 1,391 2,715 1,391 37 6] 362 80 Dec. 3,414 2,280 2,883 2,280 5 365 1971—Jan.. 1,515 1,547 327 1,515 1,547 327 Feb. 5,832 5,153 5,347 5,153 -3,732 174 4,092 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 u a 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, ­ p ( m u n a r g e e c t r n h e r t e a s e ­ s ) ­ e r O i n g u e h t t t ­ , m r a c e g h n e p r a n e u e s t t e r e s ­ ­ , changei 1970—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 Aug.. .. 150 3,181 2,852 1,351 31 -4 30 1,407 Sept.. . . 16 3,906 3,861 28 50 3 21 101 Oct....... 3,465 3,353 40 * -14 34 Nov.. .. 23 ‘386 16 -36 3,863 4,125 1,218 -27 1 13 1,204 Dec.. . . 113 48 5,109 5,334 908 -61 21 -50 819 1971—Jan.. . 2,298 2,298 -359 2 -357 Feb. .. -360 4,183 4,183 679 -5 673 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 io o d f Total s P t o e u rl n in d g s s A c u h s il t l r i i n a 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 h d d e e s r r s ­ f S r w an is c s s 1968—Dec.............. 2,061 1,444 8 3 433 165 1 1 4 3 1969—Dec.............. 1,967 1,575 1 * 199 60 125 1 3 4 1970—Jan............... 975 605 1 * 100 60 201 1 3 4 Feb.............. 1,179 215 1 * 159 801 1 3 * Mar.............. 1,169 207 1 * 157 801 1 3 * Apr.............. 1,101 199 1 * 93 805 1 3 * May............. 510 199 * * 94 205 1 * 11 June............. 690 180 * * 94 400 1 * 15 July............. 290 180 * * 95 1 * 14 Aug.............. 280 180 * * 96 1 * 3 Sept............. 680 580 * * 96 1 * 3 Oct............... 408 306 * * 97 1 * 4 Nov............. 265 161 * * 98 1 * 4 Dec.............. 257 154 * * 98 1 * 4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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 1971 1971 1970 Mar. 31 Mar. 24 Mar. 17 Mar. 10 Mar. 3 Mar. 31 Feb. 28 Mar. 31 Discounts and advances—Total....................................... 391 819 566 1,521 262 391 264 684 Within 15 days................................................................. 389 817 565 1,521 262 389 263 639 16 days to 90 days........................................................... 2 2 1 2 1 45 91 days to 1 year............................................................. Acceptances—T otal............................................................. 138 61 148 75 91 138 54 52 Within 15 days................................................................. 98 22 110 45 61 98 22 15 16 days to 90 days........................................................... 40 39 38 30 30 40 32 37 91 days to 1 year............................................................. U.S. Government securities—Total................................ 64,345 62,455 63,054 62,495 62,767 64,345 62,441 55,785 Within 15 days1............................................................... 4,434 3,480 4,267 3,127 2,959 4,434 1,831 1,673 16 days to 90 days........................................................... 14,414 14,516 14,280 14,911 15,144 14,414 15,410 22,606 91 days to 1 year............................................................. 14,934 14,174 14,284 14,302 14,509 14,934 15,179 9,965 Over 1 year to 5 years.................................................... 23,619 23,452 23,436 23,420 23,420 23,619 23,356 13,976 Over 5 years to 10 years................................................. 6,080 6,001 5,970 5,922 5,922 6,080 5,875 6,953 Over 10 years................................................................... 864 832 817 813 813 864 790 612 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 S Y l c A l 2 . . ) 3 ’s 2 SM o 2 t 2 h S 6 e A r ’s 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 S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1970—Feb.................................. 9,790.3 4,232.1 2,309.1 5,558.1 3,249.0 72.3 148.8 74.2 51.9 42.8 Mar................................. 9,842.0 4,336.7 2,291.4 5,505.3 3,213.9 70.6 145.7 72.2 50.2 41.2 Apr................................. 10,164.2 4,422.0 2,417.9 5,742.3 3,324.4 72.8 149.7 75.8 52.1 42.5 May................................ 10,015.7 4,249.4 2,460.0 5,766.4 3,306.4 73.4 150.6 78.4 53.3 43.0 June................................ 10,136.3 4,366.0 2,443.3 5,770.3 3,327.0 73.1 149.3 77.5 52.7 42.7 July................................ 10,207.8 4,324.3 2,508.2 5,883.6 3.375.3 73.1 145.3 79.4 53.6 43.1 Aug................................. 10,550.5 4,770.6 2,478.8 5,779.9 3,301.1 75.7 162.8 77.9 52.5 42.2 Sept................................. 10,552.0 4,668.1 2,502.9 5,883.9 3,381.0 75.3 161.0 77.9 53.0 42.8 Oct.................................. 10,780.2 4,899.8 2,497.4 5,880.5 3,383.0 78.1 175.9 78.4 53.4 43.2 Nov................................. 10,533.9 4,824.0 2,420.1 5,709.9 3,289.8 75.6 168.5 75.8 51.6 41.8 Dec.r.............................. 10,896.5 5,016.1 2,480.1 5,880.3 3,400.2 77.0 170.6 76.7 52.4 42.6 1971—Jan................................... 10,710.1 4,825.9 2,475.2 5,884.2 3,409.0 76.4 168.3 77.3 52.8 42.9 Feb.................................. 11,535.6 5,477.4 2,550.4 6,058.2 3,507.8 82.2 191.3 80.1 54.2 43.9 1 Excludes interbank and U.S. Govt, demand deposit accounts. For description of series, see Mar. 1965 Bulletin, p. 390. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and The data shown here differ from those shown in the Mar. 1965 Bulletin Los Angeles-Long Beach. because they have been revised, as described in the Mar. 1967 Bulletin, p. 389. Note.—Total SMSA’s includes some cities and counties not designated as SMSA’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ APRIL 1971 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939. 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 . 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950. 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958. 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959. 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960, 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 , 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963 , 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964, 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 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— 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 Aug............ 54,669 38,042 6,170 2,142 136 2,942 8,743 17,909 16,627 4,654 11,487 220 259 3 4 Sept............ 54,795 38,082 6,193 2,168 136 2,964 8,747 17,875 16,712 4,668 11,562 219 257 3 4 Oct............. 55,021 38,192 6,213 2,181 136 2,975 8,761 17,926 16,829 4,694 11,656 217 255 3 4 Nov............ 56,381 39,284 6,251 2,242 136 3,068 9,090 18,497 17,097 4,781 11,839 216 254 3 4 Dec............. 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 4 1971--Jan.............. 55,345 38,081 6,254 2,190 136 2,971 8,673 17,857 17,264 4,809 11,983 214 251 3 4 Feb............. 55,611 38,298 6,266 2,178 136 2,972 8,753 17,994 17,313 4,822 12,022 213 249 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 OF UNITED STATES CURRENCY OUTSTANDING AND IN CIRCULATION (Condensed from Circulation Statement of United States Money, issued by Treasury Department. In millions of dollars) Held in the Treasury Currency in circulation 1 Total, out­ Held by standing, As security For F.R. 1970 Kind of currency Feb. 28, against Treasury F.R. Banks 1970 gold and cash Banks and silver and Agents Feb. Jan. certificates Agents 28 31 Gold...................................... 10,732 (10,464) 2 268 Gold certificates................. (10,464) 3 10,463 Federal Reserve notes 52,791 133 3,924 48,734 48,482 Treasury currency—Total. 7,213 71 266 6,876 6,863 Standard silver dollars.. 485 3 482 482 Fractional Coin.............. 6,108 58 265 5,785 5,773 United States notes........ 323 10 312 311 In process of retirement 298 298 298 Total—Feb. 28, 1971........ 5 70,736 (10.464) 471 10.463 4,191 55,611 Jan. 31, 1971......... 5 70,957 (10.464) 472 10.463 4,677 55,345 Feb. 28, 1970........ 5 67,393 (11,045) 580 11,044 3,736 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 $159 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

APRIL 1971 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted M2 M3 M2 Ms (Mi plus (M2 plus (Mi plus (M2 plus Month or week Mi time deposits deposits at Mi time deposits deposits at (Currency at coml. nonbank (Currency at coml. nonbank plus demand banks other thrift plus demand banks other thrift deposits) than large institutions2) deposits) than large institutions2) time C.D.’s1) time CD’s1) 1967—Dec................. 183.1 345.6 528.5 188.6 350.1 533.3 1968—Dec................. 197.4 378.2 572.6 203.4 383.0 577.5 1969—Dec................. 203.6 387.1 588.4 209.8 392.0 593.5 1970—Mar................ 206.6 390.4 592.4 204.7 389.1 591.4 Apr................. 208.3 393.9 597.2 209.3 395.8 599.3 May............... 209.2 396.4 600.8 205.3 393.4 597.6 June............... 209.6 398.6 604.1 207.8 396.9 602.8 July................. 210.6 401.9 609.1 209.0 400.5 607.9 Aug................. 211.8 406.1 614.7 208.7 403.1 611.3 Sept................ 212.8 409.6 619.7 211.4 408.2 618.0 Oct.................. 213.0 412.1 623.9 213.0 412.3 624.0 Nov................. 213.5 414.5 628.2 215.3 415.4 628.6 Dec................. 214.6 419.0 634.6 221.1 424.1 639.9 1971—Jan.................. 214.8 423.0 642.1 221.3 428.9 648.4 Feb.................. 217.3 430.8 653.9 215.5 428.4 651.2 Mar.*............. 219.2 437.4 217.2 436.1 Week ending— 1971—Feb. 24 217.9 432.6 212.7 426.7 Mar. 3 218.5 434.6 216.7 432.3 10 218.3 435.2 216.9 434.0 17 218.4 436.2 217.8 436.4 24 219.3 438.5 216.2 436.1 31*___ 220.7 441.1 217.7 438.9 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks Month or Nonbank Nonbank U.S. week Cur­ Time and savings • thrift Cur­ Time and savings thrift Govt. rency deposits institu­ rency deposits institu­ depos­ Demand tions 4 Demand tions 4 its 5 deposits deposits CD’s 3 Other Total CD’s 3 Other Total 1967—Dec............. 40.4 142.7 21.0 162.5 183.5 183.0 41.2 147.4 20.6 161.5 182.1 183.1 5.0 1968—Dec.. _____ 43.4 154.0 24.0 180.8 204.8 194.4 44.3 159.1 23.6 179.6 203.2 194.6 5.0 1969—Dec............. 46.0 157.7 11.2 183.4 194.6 201.3 46.9 162.9 11.1 182.1 193.2 201.5 5.6 1970—Mar............ 46.7 159.8 11.5 183.8 195.3 202.1 46.3 158.4 11.5 184.4 195.9 202.4 6.9 Apr............. 47.1 161.2 12.9 185.6 198.5 203.3 46.6 162.6 12.8 186.5 199.3 203.5 5.3 May........... 47.7 161.6 13.2 187.1 200.3 204.4 47.3 158.0 13.0 188.1 201.1 204.2 6.4 June........... 47.8 161.9 13.2 189.0 202.2 205.5 47.7 160.1 13.2 189.2 202.3 205.9 6.5 July............. 48.1 162.5 16.9 191.3 208.2 207.2 48.3 160.7 16.6 191.5 208.1 207.5 6.8 Aug............. 48.2 163.7 19.0 194.2 213.2 208.7 48.3 160.4 19.5 194.4 214.0 208.2 7.1 Sept............. 48.2 164.6 21.7 196.8 218.5 210.1 48.2 163.1 21.6 196.8 218.4 209.8 6.8 Oct.............. 48.5 164.5 23.2 199.1 222.2 211.9 48.5 164.5 23.2 199.3 222.5 211.7 6.1 Nov............. 48.7 164.8 23.9 201.1 225.0 213.6 49.2 166.1 24.6 200.0 224.6 213.2 5.6 Dec............. 48.9 165.7 26.0 204.4 230.4 215.6 50.0 171.1 25.8 203.0 228.7 215.9 7.1 1971—Jan.............. 49.2 165.5 27.1 208.2 235.3 219.1 49.1 172.1 27.0 207.6 234.5 219.5 6.6 Feb........... 49.6 167.7 27.4 213.5 240.9 223.1 49.2 166.3 27.4 212.9 240.3 222.9 8.3 Mar.*......... 50.0 169.2 27.9 218.2 246.1 49.5 167.7 28.0 218.9 246.9 5.4 Week ending— 1971—Feb. 24... 49.5 168.4 27.4 214.6 242.0 48. 8 163.9 27.5 214.0 241.5 8.0 Mar. 3 ... 49.8 168.7 27.7 216.1 243.7 49.2 167.5 27.8 215.6 243.5 7.5 10... 49.8 168.5 27.8 216.9 244.7 49.8 167.1 28.2 217.1 245.3 5.5 17. .. 50.0 168.4 28.5 217.8 246.2 49.7 168.1 28.4 218.6 247.0 5.8 24. . . 50.0 169.3 27.9 219.2 247.1 49.5 166.7 28.1 219.9 248.0 5.4 31*.. 50.1 170.6 27.3 220.4 247.7 49.3 168.4 27.5 221.3 248.8 4.1 1 Includes, in addition to currency and demand deposits, savings Note.—For description of revised series and for back data, see Dec. deposits, time deposits open account, and time certificates of deposits 1970 Bulletin, pp. 887-909. other than negotiable time certificates of deposit issued in denomina­ Averages of daily figures. Money stock consists of (1) demand tions of $100,000 or more by large weekly reporting commercial banks. deposits at all commercial banks other than those due to domestic com­ 2 Includes M2, plus the average of the beginning and end of month mercial banks and the U.S. Govt., less cash items in process of col­ deposits of mutual savings banks and savings and loan shares. lection and F.R. float; (2) foreign demand balances at F.R. Banks; 3 Negotiable time certificates of deposit issued in denominations of and (3) currency outside the Treasury, F.R. Banks, and vaults of all $100,000 or more by large weekly reporting commercial banks. commercial banks. Time deposits adjusted are time deposits at all 4 Average of the beginning and end-of-month deposits of mutual commercial banks other than those due to domestic commercial savings banks and savings and loan shares. banks and the U.S. Govt. 5 At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 18 BANK RESERVES; BANK CREDIT □ APRIL 1971 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements2 Total member bank deposit plus nondeposit S.A. N.S.A. items3 Period Total Non­ Demand Demand borrowed Required Time Time Total and Total and S.A. N.S.A. savings U.S. savings Private U.S. Govt. Govt. 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—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—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 27.78 28.41 303.2 164.9 131.9 6.4 301.0 166.0 129.1 5.9 321.9 319.8 Sept... 29.24 28.71 29.02 308.0 169.5 132.3 6.2 306.8 169.9 131.2 5.8 324.5 323.2 Oct.... 29.39 28.93 29.13 310.6 173.0 132.4 5.2 310.9 173.2 132.6 5.1 324.8 325.1 Nov.. . 29.47 29.03 29.23 314.0 175.7 132.3 6.0 312.8 174.9 133.4 4.6 326.7 325.6 Dec.. . 29.93 29.58 29.70 319.6 179.9 133.5 6.2 322.8 178.2 138.7 6.0 331.2 334.4 1971—Jan.... 30.23 29.80 30.03 323.9 183.2 134.1 6.7 328.2 182.8 139.7 5.6 334.1 338.3 Feb.... 30.52 30.18 30.26 329.1 187.5 135.4 6.2 328.4 187.1 134.3 7.0 337.7 337.0 Mar.p. 30.76 30.41 30.53 333.2 191.7 136.7 4.8 332.2 192.3 135.4 4.5 340.2 339.2 1 Averages of daily figures. Data reflect percentages of reserve require­ 3 Total member bank deposits subject to reserve requirements, plus ments made effective Apr. 17, 1969. Required reserves are based on Euro-dollar borrowings, bank-related commercial paper, and certain average deposits with a 2-week lag. other nondeposit items. This series for deposits is referred to as “the 2 Averages of daily figures. Deposits subject to reserve requirements in­ adjusted bank credit proxy.” clude total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits ex­ Note.—Due to changes in Regulations M and D, required reserves cept those due to the U.S. Govt., less cash items in process of collection include increases of approximately $400 million since Oct. 16, 1969. and demand balances due from domestic commercial banks. Effective June Back data may be obtained from the Banking Section, Division of Research 9, 1966, balances accumulated for repayment of personal loans were elim­ and Statistics, Board of Governors of the Federal Reserve System, Wash­ inated from time deposits for reserve purposes. Jan. 1969 data are not ington, D.C. 20551. comparable with earlier data due to the withdrawal from the System on Jan. 2, 1969, of a large member bank. LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Securities Securities Period Total 1,2 Loans1, 2 Total1,2 Loans1, 2 U.S. Other2 U.S. Other2 Govt. Govt. I960—Dec. 31..................................................................... 194.5 113.8 59.8 20.8 198.5 116.7 61.0 20.9 1961—Dec. 30..................................................................... 209.6 120.4 65.3 23.9 214.4 123.9 66.6 23.9 1962—Dec. 31..................................................................... 227.9 134.0 64.6 29.2 233.6 137.9 66.4 29.3 1963—Dec. 31..................................................................... 246.2 149.6 61.7 35.0 252.4 153.9 63.4 35.1 1964—Dec. 31...................................................................... 267.2 167.7 60.7 38.7 273.9 172.1 63.0 38.8 1965—Dec. 31..................................................................... 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 1966—Dec 31..................................................................... 310.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967—Dec. 30..................................................................... 346.5 225.4 59.7 61.4 354.5 230.5 62.5 61.5 1968—Dec. 31...................................................................... 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969 Dec. 313................................................................... 401.3 278.1 51.9 71.3 410.5 284.5 54.7 71.3 1970—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...................................................................... 403.5 277.0 52.4 74.0 403.5 276.9 52.3 74.3 May 27...................................................................... 405.9 278.0 53.4 74.5 403.9 277.0 52.6 74.3 June 30..................................................................... 406.4 277.4 54.1 75.0 410.1 282.9 51.6 75.6 July 29...................................................................... 412.8 281.5 55.8 75.5 412.6 283.4 53.5 75.7 Aug. 26..................................................................... 418.3 284.1 57.5 76.7 415.4 283.2 55.1 77.1 Sept. 30..................................................................... 423.7 287.3 57.6 78.8 423.3 288.0 55.8 79.5 Oct. 28p................................................................... 424.0 286.9 56.3 80.8 423.6 285.5 57.1 81.0 Nov. 25p................................................................... 427.3 287.7 56.5 83.2 426.8 286.2 58.0 82.6 Dec. 31 e................................................................... 432.5 288.9 58.0 85.6 442.4 295.5 61.2 85.7 1971—Jan. 27^................................................................... 438.0 291.2 58.4 88.4 437.1 288.5 61.3 87.3 Feb. 24?.................................................................... 443.6 294.3 59.6 89.8 440.0 289.8 61.2 89.0 Mar. 31 p................................................................... 447.6 294.3 61.2 92.1 445.4 292.4 61.4 91.7 1 Adjusted to exclude interbank loans. are now reported gross, without valuation reserves deducted, rather than 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated net of valuation reserves as was done previously. For a description of the for payment of personal loans were deducted as a result of a change in revision, see Aug. 1969 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 “Loans.” ing Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. 3 Beginning June 30, 1969, data revised to include all bank-premises 1967, pp. 1511-17. subsidiaries and other significant majority-owned domestic subsidiaries; Data are for last Wed. of month except for June 30 and Dec. 31; data earlier data include commercial banks only. Also, loans and investments are partly or wholly estimated except when June 30 and Dec. 31 are call dates. 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APRIL 1971 d BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Date S c c s G . e a a t D o r t n o e t c . d l i s R d k f i 1 . ­ T r s c o e u r i t u n n e u a r a g y c r n t ­ ­ s y d ­ ­ 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 l T n a i i a n p a e t o i n b t e i e t — t d a t i s a l l l ­ , c d u e T r a p o r n o e t d s a n i l c ts y C c m o a a n a u p n i c e s n d i ­ t c t t 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—Dec. 315 10.367 6,849 532,663 335,127 115,129 57,952 57,154 23 82,407 549,879 485,545 64,337 1970—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 6.900 523.900 326.300 111.700 55,600 56.100 85.800 542,600 476.800 65.800 May 27. 11,800 7.000 526,100 327,000 113.100 56.000 57.100 86,000 544.800 475.800 69,000 June 30. 11,767 6,986 536,845 336,860 112,475 54,742 57,714 19 87,510 555,596 487,093 68,501 July 29. 11,800 7.000 539.300 336,400 115.100 56.800 58.300 87.800 558.100 489.800 68.300 Aug. 26. 11,800 7.000 545,400 338,100 118,000 58.300 59.600 89.400 564,200 494,000 70.200 Sept. 30. 11.500 7.100 554.800 343.800 119,000 59.000 60,000 91,900 573,300 504,600 68.800 Oct. 28*. 11.500 7.100 554.300 341.300 119,600 60.300 59.300 93.400 572.900 505.300 67.600 Nov. 25*, 11.500 7.100 558.900 341.300 122.400 61.200 61.100 95,200 577,500 509,900 67.600 Dec. 30*. 11.500 7.100 576.300 352,500 125,000 64.300 60.600 100 98.800 594.900 528,700 66.200 1971—Jan. 27*. 11,100 7.200 573.500 345,900 126.700 64,500 62,000 300 101,000 591.800 526,200 65.600 Feb. 24*. 11,100 7.200 576.500 346.800 126,800 64,400 61,700 700 102,900 594.800 528.300 66,500 Mar. 31* 11,100 7,300 585,700 349,600 129,800 64,900 64,200 800 106,300 604.100 537.300 66,800 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted 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 m e D p a s a o t d e n e 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 ei e g t n 9 , T h c i u r o n a e r g l s a y d s h 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—Dec. 315.. 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—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... 198,400 46.300 152.100 198.400 45.900 152.600 267.400 199.500 68,000 2,600 600 6,400 1,400 May 27... 198.600 46,500 152.100 196.200 46.400 149.800 269,300 201,000 68.300 2.400 500 6,200 1,300 June 30.. . 199.600 46.600 153.000 201,614 47,032 154,582 273,109 203,916 69,193 2,641 439 8,285 1,005 July 29... 199,300 46.800 152,500 199,100 46.900 152,200 279.200 210,000 69.200 2,600 500 7,400 1,000 Aug. 26.. . 199.900 46.800 153.100 198.200 47,100 151.100 283.400 214.100 69.300 2.400 500 8,600 900 Sept. 30.. . 203.500 47,200 156,300 202.200 47.300 154.900 289.400 219.500 69,900 2.400 400 8,800 1,200 Oct. 28*.. 201.600 47.400 154,200 202.400 47.300 155.100 292,000 221,800 70.200 2,600 500 6,600 1,300 Nov. 25*.. 202,000 47.600 154.400 205,200 48.900 156,300 294,800 224,300 70,500 2.500 500 6,200 800 Dec. 30*. . 208,600 47.800 160,800 215,800 48.900 166.900 300,900 229.200 71,700 2,600 400 7,700 1,300 1971—Jan. 27*.. 202.900 48.300 154,600 205.400 47,600 157.800 307.200 234,600 72,600 2.500 500 9,400 1 ,200 Feb. 24*.. 204.500 48.600 155.900 203.400 48,000 155,400 313,250 240.100 73,100 2.500 500 7,300 1,400 Mar. 31*.. 213.500 49.400 164.100 207,600 48.900 158,700 321.100 246,700 74,400 2.500 500 4,900 900 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. See table duced this item by $1,900 million ($1,500 million to time deposits and $400 (and notes), Deposits Accumulated for Payment of Personal Loans, p. A-23. million to demand deposits). 3 See note 2 on 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

A 20 COMMERCIAL BANKS □ APRIL 1971 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 assets 3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks 1,2 U.S. capital De­ Treas­ Other2 ac­ mand Time Time1 ury counts4 U.S. Govt. Other A11 commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,982 44,349 15,952 23 7,173 14,278 1945—Dec. 31 .. . 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,065 105,921 30,241 219 8,950 14,011 1947—Dec. 31 5. 116,284 38,057 69,221 9,006 37,502 155,377 144,103 12,792 240 1,343 94,367 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 5,234 184,066 182,511 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 5,010 199,901 203,154 8,899 37,006 13,679 1969--Dec. 31 6. 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--Mar. 25... 412,410 288,230 51,520 72,660 76,360 508,420 407,980 21,810 580 6.140 183,090 196,360 22,840 40,370 13.664 Apr. 29 ... 417,170 290,550 52,330 74,290 78,410 515,650 413,780 21,600 660 6,230 185,620 199,670 23,530 40,590 13.665 May 21... 417,340 290,370 52,640 74,330 78.930 516,630 413,720 22,180 690 5,960 183,740 201,150 23,080 40,850 13.665 June 30... 423,240 296,091 51,569 75,579 85,631 529,679 432,429 26,338 898 8,076 192,999 204,118 18,546 41,708 13.671 July 29... 425,530 296,330 53,510 75,690 74.930 520,800 422,740 22,440 1,350 7,170 181,540 210,240 19,850 41,510 13.671 Aug. 26.. . 430,080 297,900 55.050 77,130 78,820 529,640 429,680 22,890 1,630 8,270 182,520 214,370 20,160 41,720 13,675 Sept. 30*.. 436,790 301,530 55,750 79,510 85,760 543,900 447,320 26,480 1,710 8,470 190,810 219,850 18,170 42,040 13,678 Oct. 28*.. 439,350 301,310 57.050 80,990 78,310 538,950 439,790 24,780 1.740 6,220 184,870 222,180 20,200 42,080 13,684 Nov. 25*.. 442,490 301,860 58,020 82,610 82,400 546,470 445,690 24,680 1.740 5,790 188,780 224,700 21,680 42,270 13.687 Dec. 30*.. 461,120 314,300 61,100 85,720 87,080 570,560 469,850 27,640 1,860 7,330 203,410 229,610 22,140 42,500 13.687 1971--Jan. 27*.. 453,850 305,310 61,250 87,290 83,300 558,140 461,630 25,380 1,990 9,080 190,210 234,970 20,650 42,660 13,692 Feb. 24*.. 457,650 307,450 61,160 89,040 81,930 560,790 462,880 25,870 1,950 6,890 187,620 240,550 21,660 42,980 13.700 Mar. 31*.. 463,100 310,080 61,350 91,670 93,690 579,750 482,240 30,660 1,960 3,960 198,540 247,120 22,290 43,470 13.700 Member of F.R. System: 1941—Dec. 31 ... 43,521 18,021 19,539 5,961 23,113 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--Dec. 31 6. 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--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 30... 335,551 240,100 37,324 58,127 75,539 428,975 345,514 25,122 691 6,957 155,916 156,829 17,507 33,184 5,803 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 5,795 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 5,785 Sept. 30. .. 346,643 244,769 40,779 61,095 75,853 440,724 358,433 25,339 1,500 7,258 153,951 170,385 17,169 33,479 5,784 Oct. 28. .. 348,424 244,377 41,872 62,175 68,978 435,498 350.996 23,643 1.535 5,169 148,472 172,177 19,021 33,481 5,781 Nov. 25. .. 350,746 244,442 42,661 63,643 72,422 441,486 355,566 23,516 1.535 4,855 151,385 174,275 20,538 33,629 5,773 Dec. 30. .. 366,578 255,301 45,054 66,223 76,993 462,506 376,543 26,390 1,657 6,052 164,115 178,329 21,166 33,806 5,766 1971--Jan. 27... 359,731 247,183 45,222 67,326 73,521 451,224 369,092 24,179 1,785 7,929 152,695 182,504 19,557 33,950 5,761 Feb. 24... 362,488 248,916 44,840 68,732 72,296 452,887 369,632 24,680 1,744 5,730 150,712 186,766 20,440 34,213 5.754 Mar. 31*.. 366,723 250,777 45,193 70,753 83,092 469,355 386,692 29,399 1,749 3,726 159,983 191,835 21,107 34,658 5.754 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 2,1201 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 6,3701 467' 1,016' 26,535 : 17,449 1,874 5,298: 12 1967-—Dec. 30... 52,141 39,059 6,027 7,055 i 18,797 74,609 60,407 7,238 741 1,084■ 31,282 : 20,062 1,880 5,715i 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--Dec. 31 6. 60,333 48,305! 5,048: 6,9801 22,349 87,753 62,381 10,349 268; 694^ 36,126> 14,944 4,405 6,301 12 1970--Mar. 25... 57,225 45,505i 4,4081 7,312 : 21,809' 84,348: 58,076 9,585i 211 844^ 32,203 i 15,233 5,467 ' 6,272! 12 Apr. 29 ... 58,01C 45,2861 5,091 7,633 i 20,778 84,145i 57,536 8,927' 245i 9681 32,116 » 15,280 1 5,756 . 6,29C) 12 May 27... 57,288 44,819' 4,981 7,488! 22,007' 84,604t 57,147 9,356> 28C ) 8821 31,742 1 14,887 r 5,821 6,33?i 12 June 30... 57,088 44,881 4,413t 7,795 i 23,07C> 85,666) 60,615 11,148! 321 1,236i 32,59( ) 15,32C ) 4,057 ’ 6,374I 12 July 29... 58,72C 45,917r 5,142! 7,661 18,322: 82,356> 57,063 9,322: 592 > 1,382! 28,927 1 16,84C1 4,855 i 6,34C) 12 Aug. 26... 58,468 45,208! 5,4581 7,802 * 20,9821 84,8921 58,959 9,668! 729> 1,214\ 29,943 \ 17,405 i 5,243 6,405i 12 Sept. 30... 59,484 46,265i 5,144\ 8,075i 23,057r 88,026> 64,019 12,161 719 > 1,355i 31,072 \ 18,712 : 4,184 L 6,439> 12 Oct. 28... 59,215 45,99() 5,337' 7,888 I 19,175! 83,785> 59,297 10,738! 776> 6581 28,02-1 \ 19,101 5,038 ! 6,38!i 12 Nov. 25 . .. 59,65" 45,717' 5,4625 8,477 1 20,151 85,36*I 59,654 10,276> SU \ 74S) 28,552 I 19,263 ! 6,224I - 6,42^1 12 Dec. 30. .. 63,43' 48,359> 5,878I 9.20C) 22,916> 91,95!> 66,943 12,0521 91S> 92^I 32,827' 20,22C) 6,12C> 6,442> 12 1971--Jan. 27..., 60,65* 45,791 6,011, 8,856 > 21,214 1 87,43"1 64,712 11,27C) 95() 1,9855 29,761 20,746i 4,997 r 6,44^) 12 Feb. 24.... 60,791 46,61() 5,37*I 8,80:) 20,3921 86,74<) 63,848 11,3671 91S ) 87<) 29,35: > 21,331 5,855 i 6,51() 12 Mar. 31.. 59,91: 45,45-1 5,68:J 8,77:> 27,111I 93,161I 71,34! 14,67:> 84(3 572* 33,11*1 22,14() 5,7411 6,722J 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 o 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— 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 Total3 Treas­ Other ac­ De­ Time Time1 ury 2 counts4 mand U.S. Govt. Other Reserve city member (cont.): City of Chicago: 7 •8 1941 Dec. 31............. 2,760 954 1,430 376 1,566 4,363 4,057 1,035 127 2,419 476 288 13 1945 Dec. 31............. 5,931 1,333 4,213 385 1,489 7,459 7,046 1,312 1,552 3,462 719 377 12 1947 Dec. 31............. 5,088 1,801 2,890 397 1,739 6,866 6,402 1,217 72 4,201 913 426 14 1966—Dec. 31............. 11,802 8,756 1,545 1,502 2,638 14,935 12,673 1,433 25 310 6,008 4,898 484 1.199 11 1967 Dec. 30............. 12,744 9,223 1,574 1,947 2,947 16,296 13,985 1,434 21 267 6,250 6,013 383 1,346 10 1968 Dec. 31............ 14,274 10,286 1,863 2,125 3,008 18,099 14,526 1 ,535 21 257 6,542 6,171 682 1,433 9 1969—Dec. 31 6......... 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 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 30............. 14,648 10,986 1,54C 2,121 2,622 18,291 13,266 1,682 16 347 6,102 5,119 1,507 1,566 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 Sept. 30............. 15,058 11,151 1,746 2,161 2,788 18,849 13,764 1,595 69 380 6,017 5,703 1,959 1,562 9 Oct. 28............. 14,835 10,735 1,925 2,175 3,040 18,841 13,399 1,301 79 250 5,921 5,848 2,253 1,565 9 Nov. 25............. 15,076 10,921 1,839 2,316 2,981 19,016 13,538 1,375 79 250 5,855 5,979 2,330 1,580 9 Dec. 30............. 15,810 11,387 1,984 2,439 3,133 19,997 14,433 1,435 76 243 6,626 6,053 2,230 1,586 9 1971—Jan. 27............. 15,530 10,901 2,208 2,421 2,981 19,487 14,303 1,313 79 487 6,091 6,333 1,969 1,591 9 Feb. 24............. 15,479 11,00C 2,048 2,431 3,083 19,482 14,264 1,451 58 252 6,010 6,493 2,125 1,618 9 Mar. 31............. 16,056 11,345 2,179 2,532 2,695 19,609 14,665 2,074 130 168 5,598 6,695 1,961 1,635 9 Other reserve city: 7 • 8 1941_Dec 31 . . . 15,347 7,105 6,467' 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............ 40,108 8,514 29,552: 2,042 11,286 51,898: 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............ 36,04C 13,449 20,196i 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 13,040l 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 26,867 136,626i 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............. 119,006 83,634 15,0361 20,337 28,136 151,957r 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—Dec. 31 6........ 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—Mar. 25............. 117,942 87,645 11,078 19,219 23,272 147,381 114,763 7,757 116i 2,148 49,856 54,886 11,180 11,611 158 Apr. 29............. 119,213 88,093 11,298 19,822 25,042 150,6481 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 24,393 149,816i 116,945 8,213 160i 1,945 49,990 56,637 11,025 11,780 157 June 30............. 121,213 90,152 11,3721 19,689 27,106 154,889• 123,673 9,530 273 3,115 53,317 57,438 9,779 11,868 156 July 29............. 120,894 89,581 11,665; 19,648 24,422 151,834t 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 25,008 154,765i 123,746 8,544 552, 3,049 50,085 61,516 9,485 11,934 156 Sept. 30............. 125,582 91,955 12,859i 20,768 27,368 159.587’ 129,246 8,992 628: 3,082 53,139 63,405 9,019 12,040 156 Oct. 28............. 126,646 91,973 13,299i 21,374 25,157 158,316> 127,238 9,032 599' 2,138 51,709 63,760 9,380 12,032 156 Nov. 25............. 126,943 91,301 13,789> 21,853 26,774 160,182! 129,249 9,213 561 1,977 52,625 64,873 9,711 12,053 156 Dec. 30............. 133,782 96,404 14,656i 22,722; 27,956 168,418! 136,577 10,062 581 2,304 57,155 66,475 10,874 12,131 156 1971—Jan. 27............. 130,725 92,805 14,490> 23,430i 26,930 164,214t 133,018 8,875 675 3,141 52,463 67,864 10,413 12,234 156 Feb. 24............. 131,751 92,932 14,498! 24,321 26,701 164,99:* 133,375 9,169 686» 2,262 52,063 69,195 10,014 12,321 156 Mar. 31............. 134,204 94,302 14,636► 25,266. 29,361 170,51i[ 138,409 9,791 692: 1,592 55,594 70,740 11,044 12,474 156 Country member: 7 • 8 1941—Dec. 31............. 12,518 5,890 4,377r 2,250i 6,402 19,466i 17,415 792 30l 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 17r 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31............ 36,324 10,199 22,857r 3,268 10,778 47,553i 44,443 1,056 17r 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' 22,826i 20,334 146,052I 131,156 2,766> 96i 1,564 61,161 65,569 552: 11,005i 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—Dec. 316.......... 140,715 92,147 21,278: 27,291 23,928 169,078i 148,007 3,152 84 1,671 67,930> 75,170 1 ,820' 12,766 5,691 1970—Mar. 25............. 139,131 91,537 20,283 27,311 19,812 163,496> 141,187 2,271 86i 1,850 60,449 76,531 2,510i 12,930i 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 20,375I 27,934 20,652 166,453l 143,231 2,349 86i 1,855 60,730' 78,211 2,670• 13,068 5,638 June 30............. 142,603 94,081 19,999' 28,522 22,741 170,129> 147,960 2,763i 81 2,259 63,907 78,951 2,164 13,377 5,626 July 29............. 143,314 94,149 20,455; 28,710 20,667 168,6331 146,110 2,438 84■ 1,993 61,266 80,329 2,354■ 13,280i 5,618 Aug. 26............. 144,654 94,638 20,710i 29,306 20,868 170,429' 147,449 2,411 84• 2,449 61,243 81,252 2,202 13,334 5,608 Sept. 30............. 146,519 95,398 21,030i 30,091 22,640 174,262: 151,404 2,591 84■ 2,441 63,723 82,565 2,007 13,438; 5,607 Oct. 28............. 147,728 95,679 21,311 30,738 21,606 174,556> 151,062 2,5721 81 2,123 62,818 83,468 2,350i 13,499' 5,604 Nov. 25............. 149,070 96,503 21,5701 30,997 22,516 176,920) 153,125 2,652: 81 1,879 64,353 84,160 2,273 13,572: 5,596 Dec. 30............. 153,549 99,151 22,5361 31,862 22,988 182,1361 158,590 2,8401 81 2,581 67,507 85,581 1,942. 13,647 5,589 1971—Jan. 27............. 152,818 97,686 22,513 32,619 22,336 180,086» 157,059 2,721 81 2,316 64,380' 87,561 2,178 13,676 5,584 Feb. 24............ 154,467 98,374 22,916; 33,177 22,119 181,664t 158,145 2,693 81 2,337 63,287 89,747 2,446 13,764 5,577 Mar. 31p.......... 156,551 99,673 22,695: 34,183 23,925 186,072i 162,273 2,862: 81 1,393 65,677 92,260 2,361 13,826i 5,577 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ APRIL 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CUSS 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 G U o .S vt . . Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,<554 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,1 *83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 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 4,915 166,689 159,396 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 306. 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 1970—June 30.. 421,141 294,963 51,248 74,929 84,885 526,484 431,094 26,017 829 8,040 191,752 204,456 18,215 41,159 13,478 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 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 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 3,049 121,719 114,885 12,279 23,248 4,668 1970—June 30.. 247,862 176,376 28,191 43,295 51,942 312,480 254,261 14,947 393 5,066 113,296 120,559 13,051 24,106 4,637 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 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 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 306. 88,346 64,007 9,902 14,437 26,344 119,358 93,858 9,773 285 1,341 45,152 37,307 4,104 8,689 1,236 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 1970—June 30.. 88,404 64,439 9,133 14,832 23,598 117,209 91,967 10,175 299 1,891 42,620 36,983 4,457 9,078 1,166 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 1,560i 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 12,366i 6,558 7' 1,271 6,478 1963—Dec. 20.. 42,464 23,550i 13,391 5,523 5,942 49,275: 44,280 559 61 726■ 23,140 1 19,793 72: 4,234• 7,173 1964—Dec. 31.. 46,567 26,544■ 13,790I 6,233 7,174 54,747' 49,389 658 70 649 25.504 ■ 22,509 991 4,488 7,262 1965—Dec. 31.. 52,028 30,310i 14,137' 7,581 7,513 60,679' 54,806 695i 83 618 27;528: 25,882 91 4,912: 7,320 1966—Dec. 31.. 56,857 33,6361 13,873 9,349' 7,777 65,921 59,434 709» 87 543 28,471 29,625; 99 1 5,342: 7,384 1967—Dec. 30.. 64,449 37,675i 15,146 i 11,629 ' 8,403 74,3281 67,107 786i 89 588 31,004^ 34,640 i 162 : 5,830l 7,440 1968—Dec. 31.. 73,553 43,378: 16,155i 14,02C> 9,305 84,605i 76,368 908: 94 691 34,615i 40,060i 217' 6,482: 7,504 1969—June 306. 78,032 48,358! 14,341 15,333 i 8,696i 88,802: 78,610 791 78 749 34,07C> 42,921 451 7,004► 7,528 Dec. 31.. 82,133 51,6431 14,565i 15,925i 10,056i 94,4531 83,380 i,on' 85i 924■ 37,561 43,792: 629> 7,403i 7,595 1970—June 30.. 84,875 54,14S> 13,924t 16,802! 9,346 96,194!■ 84,865 894I 137 1,083i 35,837r 46,913i 708! 7,975i 7,675 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS a i n n m d su e F r m a D n b c I e C e rs hip Total Lo 1. a n 2 s T U re .S a . s­ Oth 2 er a C ss a e s t h s 3 c b a i a l l a p i i n c a t i i d ­ t ­ e a s l Total3 m D a e n ­ d Time Demand Tim l e r B i o n o w g r s ­ ­ c c T a o a o p u c t i n ­ a ta t l s l N ba b u o n e m f k r s ­ ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941—Dec. 31............ 1,457 455 761 241 763 2,283 1,872 329 1,291 253 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 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 M75 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969—June 30 6 ........ 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 1970—June 30........... 3,043 2,073 321 650 746 4,140 2,280 321 69 36 1,247 606 331 549 193 Total nonmember: 1941—Dec. 31.......... 7,233 3,696 2,270 1.266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31.......... 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7,130 1947— Dec. 31........... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 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 30 6 .... 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 1970—June 30........... 87,919 56,222 14,245 17,452 10,092 100,934 87,145 1,215 207 1,119 37,084 47,520 1,038 8,523 7,868 1 See table (and notes) at the bottom of this page. 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. Total ing Alaska and Hawaii, beginning with 1959). Commercial banks represent loans include Federal funds sold, and beginning with June 1967 securities all commercial banks, both member and nonmember; stock savings purchased under resale agreements, figures for which are included in banks; and nondeposit trust companies. “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 items not shown separately. See also note 1. and one through June 1962. Those banks are not included in insured 5 Beginning with Dec. 31, 1947, the series was revised; for description, commercial banks. see note 4, p. 587, May 1964 Bulletin. Beginning June 30, 1969, commercial banks and member banks exclude 6 Figure takes into account the following changes (beginning June 30, a small national bank in the Virgin Islands; also, member banks exclude, 1969) for commercial banks: (1) inclusion of consolidated reports (in­ and noninsured commercial banks include, a small member bank engaged cluding figures for all bank-premises subsidiaries and other significant exclusively in trust business. 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— changes in F.R. membership, deposit insurance status, and the reserve that is, before deduction of valuation reservss—rather than net as pre­ classifications of cities and individual banks, and by mergers, etc. viously reported. Data for national banks for Dec. 31, 1965, have been adjusted to make 7 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, them comparable with State bank data. p. 993. For various changes between reserve city and country status in Figures are partly estimated except on call dates. 1960-63, see note 6, p. 587, May 1964 Bulletin. For revisions in series before June 30, 1947, see July 1947 Bulletin, 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million pp. 870-71. was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, June 30, Dec. 31, June 30, Class of Dec. 31, June 30, Dec. 31, June 30, bank 1968 1969 1969 1970 bank 1968 1969 1969 1970 All commercial........................... 1,216 1,150 1,131 945 All member—Cont. Insured...................................... 1,216 1,149 1,129 943 Other reserve city................ 332 293 304 222 National member................... 730 694 688 536 Country................................. 605 588 571 492 State member........................... 207 187 188 178 All nonmember........................ 278 269 255 230 All member.................................. 937 881 876 714 Insured.................................. 278 268 253 229 Noninsured........................... 2 2 Note.—These hypothecated deposits are excluded from Time deposits resulted from a change in Federal Reserve regulations. See June 1966 and Loans at all commercial banks beginning with June 30, 1966, as Bulletin, p. 808. shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal­ These deposits have not been deducted from Time deposits and Loans ment loans), and in the table at the bottom of p. A-18. These changes for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24 and A-25 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS □ APRIL 1971 LOANS AND INVESTMENTS BY CUSS OF BANK (In millions of dollars) Other loans 1 Investments purc F h o a r s ing To U.S. Treasury b c C a a l n l a l k s d s a a o n te d f l i m o T n a a v o e n n e n t d s a s t t l s i ­ f s e F e u o t r e c n l a d d . d l 2 , ­ s T 3 o , t a 4 l C m c a o n i e a m d r l ­ ­ A c tu u g r l r - - i - o T s r e o c c a u r r r it y i i e n s g in f s in ti a tu n t c i i o a n l s Real Ot i d t h n o i e - - r, Oth 5 er securities 6 S g l a o o t n c a v d a t t e l . O r s it e t i h c es u e r ­ 5 in­ al 5 bro­ vid- Bills secu­ d tr u ia s l ­ k a e n r d s ot T h o ers Banks Others uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total:2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1968—Dec. 31..402,477 6,747 259,72798,3579,718 6,625 108 2,206 13,72965,13758,3376,72464,466 58,570 12.967 1969—Dec. 31 io422,728 9, 286,75010844310,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1970—June 30. .424,18411,193285,843 108,36111,2333,9723,565 2,522 14,39370,55064,1807,06851,569 62,975 12,604 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 ,91221,526 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, 5262:58,07497,741 9,7006,4094,063 2,145 13,621 64,80458,1426,65564,028 58,288 12,650 1969—Dec. 31*0419,746 9,693 284,945 107,68510.314 5,644 3,991 2,425 14,89069,66963,008 7,319 54,399 58,840 11,869 1970—June 30..421,141 10,867284,096 107,56711,2153,886 3,541 2,457 14,24870,25263,921 7,009 51,248 62,619 12,311 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 8553,133 378 47 3,455 1,900 1,057 78,338 19,260 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,9621,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1968—Dec. 31. .326,023 5,551 215,671 87,819 5,921 6,1743,379 2,012 12,79750,461 45,4046,18947,881 48,423 ,498 1969—Dec. 31 io337,613 7,3562‘!35,63996,0956,187 5,408 ‘ 286 2,258 14,035 53,20748,3886,77639,833 47,227 7,558 1970—June 30 336,266 ,267 2!,32,54895,1906,626 3,7492,920 2,228 13,45253,215 48,7296,43937,324 50,1088,019 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—Dec. 31 io 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 1970—June 30 57,088 553 44,328 26,692 2,444 741 1,228 4,178 3,728 3,773 1,528 4,413 6,847 948 City of Chicago: 1941—Dec. 31.. 2,760 954 732 6 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 2 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 3 73 87 46 149 26 2,890 367 248 2,274 213 185 1968—Dec. 31.. 14,274 312 9,974 6,118 535 253 205 1.219 738 848 281 1,863 1,810 315 1969—Dec. 31 io 14,365 215 10,556 6,444 337 262 186 1.219 842 862 354 1,564 1,837 192 1970—June 30. . 14,648 383 10,603 6,635 379 141 152 1,154 823 942 331 1,540 1,861 261 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 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 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—Dec. 31 * 121,628 3,021 88,18037,701 1,386 878 1,300 876 6.006 19,706 17,5692,757 11,944 16,625 1,859 1970—June 30.. 121,435 3,473 86,901 37,502 1,478 5881,151 689 5,981 19,536 17,1562,820 11,372 17,733 1,955 Country: 1941—Dec. 31. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 1,881 707 359 26,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31 36,324 10,199 3,096 818 23 227 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1968—Dec. 31.. 135,364 2,295 81,70621,811 4,493 720 969 119 2,147 27,16424,154 1,69424.998 21,2695,095 1969—Dec. 311 141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,858 21,278 22,5724,718 1970—June 30. 143,095 3,858 90,71624,361 5,088 337 887 159 2,13929,12726,858 1,759 19.999 23,6674,855 Nonmember: 1947—Dec. 31. 18.454 5,432 1,205 614 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,073 625 1968—Dec. 31.. 76.454 1,196 44,056 10,538 3,797 451 729 194 932 14,676 12,933 535 16,585 10,1474,469 1969—Dec. 311 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 1970—June 30. 87,919 2,926 53,296 13,171 4,606 223 645 294 941 17,336 15,451 629 14,245 12,8764,585 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-20—A-23. 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), Deposits Accumulated for Payment of Personal at book value; they do not add to the total (shown at book value) and are 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

APRIL 1971 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits Bal­ De­ i b c C a a l n l a l k s d s a a o n te d f B s F w e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w d n e n o c i s t k e t ­ h i s s c 7 ju p m s o a d a t d s 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 v . t. S g l a o o t n a c v d t a t e l . c C c h o a f e e i e f n e r r f c d d i s t k ­ i ’ ­ s, IPC I b n a t n e k r­ G P U S a o o a n . s S v v d t t ­ . a . l S g l a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s etc. ings Total: 3 1947—Dec. 31.... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1968—Dec. 31.. .. 21,230 7,195 18,910 167,145 22,501 2,245 5,010 16,876 9,684 173,341 1,211 368 19,110 184,8928,899 37,006 1969—Dec. 31*0.. 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 1970—June 30.... 21,526 7,090 18,208 158,241 23,759 2,579 8,076 17,062 10,254 165,683 898 20217,148 187,713 18,54641,708 A11 insured: 1941—Dec. 31.. . . 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.. .. 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1968—Dec. 31.... 21,230 7,165 18,343 165,527 22,310 2,117 5,000 16,774 9,442 172,319 1,155 368 19,057 184,178 8,675 36,530 1969—Dec. 31 io. . 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 1970r—June 30.... 21,526 7,061 17,577 156,743 23,624 2,393 8,040 16,955 10,073 164,725 829 202 17,088 187,166 18,21541,159 Member—Total: 1941—Dec. 31___ 12,396 1,087 6,246 33,754 9,714 671 1,709 3,066 1,009 33,061 140 50 418 11,878 4 5,886 1945—Dec. 31.. .. 15,811 1,438 7,117 64,184 12,333 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31 .... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1968—Dec. 31 ... . 21,230 5,634 11,279 131,491 21,483 2,036 4,309 12,851 8,592 142,476 1,061 33015,668 147,545 8,458 30,060 1969—Dec. 31 *<>. . 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 1970—June 30.. .. 21,526 5,476 10,617 121,562 22,809 2,313 6,957 12,930 9,179 133,807 691 16813,142 144,233 17,50733,184 New York City: 1941—Dec. 31___ 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31.... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31___ 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1968—Dec. 31 .... 4,506 443 420 20,808 7,532 1,433 888 1,068 4,827 27,455 622 73 1,623 18,3802,733 6,137 1969—Dec. 31 io.. 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 1970—June 30.... 4,621 429 606 17,479 9,474 1,673 1,236 1,136 5,628 25,825 321 40 572 14,7084,057 6,374 City of Chicago: 1941—Dec. 31___ 1,021 43 298 2,215 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31___ 942 36 200 3,153 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31___ 1,070 30 175 3,737 1,196 21 72 285 63 3,853 2 9 902 426 1968—Dec. 31.... 1,164 98 281 5,183 1,445 89 257 245 207 6,090 21 2 624 5,545 682 1,433 1969—Dec. 31 io.. 869 123 150 5,221 1,581 96 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1970—June 30.... 885 96 135 4,683 1,607 75 347 326 178 5,597 16 1 390 4,729 1,507 1,566 Other reserve city: 1941—Dec. 31.... 4,060 425 2,590 11,117 4,302 54 491 1,144 286 11,127 104 20 243 4,542 1,967 1945—Dec. 31.... 6,326 494 2,174 22,372 6,307 110 8,221 1,763 611 22,281 30 38 160 9,563 2 2,566 1947—Dec. 31 .... 7,095 562 2,125 25,714 5,497 131 405 2,282 705 26,003 22 45 332 11,045 1 2,844 1968—Dec. 31.... 8,847 1,800 2,986 43,674 9,725 456 1,884 3,835 1,947 51,667 307 168 7,378 55,271 4,239 10,684 1969—Dec. 31 io.. 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 1970—June 30.... 8,784 1,728 2,810 40,393 9,021 509 3,115 3,798 1,723 47,797 273 67 6,005 51,5889,779 11,868 Country: 1941—Dec. 31___ 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31 .... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31.... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1968—Dec. 31. . . . 6,714 3,293 7,592 61,827 2,781 58 1,281 7,703 1,612 57,263 111 86 6,043 68,348 80411,807 1969—Dec. 31*0.. 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 1970—June 30.. .. 7,236 3,222 7,066 59,008 2,707 56 2,259 7,670 1,650 54,587 81 60 6,176 73,207 2,164 13,377 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 1969—Dec. 31 io 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 1970—June 30 1,614 7,592 36,678 949 266 1,119 4,132 1,075 31,877 207 34 4,005 43,480 1,038 8,523 7 Beginning with 1942, excludes reciprocal bank balances. Note.—Data are for all commercial banks in the United States; member 8 Through 1960 demand deposits other than interbank and U.S. banks in U.S. possessions were included through 1968 and then excluded. 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 Dec. 1960, Govt., less cash items in process of collection. and one through June 1962. Those banks are not included in all insured or 9 For reclassification of certain deposits in 1961, see note 6, p. 589, 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 26 WEEKLY REPORTING BANKS □ APRIL 1971 assets and liabilities of large commercial banks (In millions of dollars) Loans Federal funds sold, etc.] Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans finan. Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1970 Mar. 4............. 233,826 6,898 5,658 972 173 168,477 78,333 2,006 1,043 3,113 96 2,373 5,663 5,496 11............. 232,584 6,458 5,462 731 234 167,529 78,271 1,997 817 3,140 94 2,360 5,210 5,447 18............ 233,246 6,424 6,016 207 154 168,268 78,972 2,005 429 3,213 98 2,368 5,373 5,436 25............ 232,951 5,836 5,427 237 106 168,339 78,496 2,007 594 3,542 100 2,361 5,407 5,438 1971 Feb. 3............. 258,967 9,690 7,639 1,502 328 221 175,021 80,284 2,010 1,413 3,429 146 2,325 6,986 6,012 10............ 259,270 10,252 7,858 1,956 355 83 174,731 80,342 2,012 1,597 3,332 143 2,321 6,628 5,997 1 7 256,538 7,794 7,061 330 338 65 174,846 80,753 2,032 774 3,468 142 2,323 6,712 6,017 24............ 257,168 9,012 7,453 1,194 342 23 174,538 80,800 2,023 1,174 3,267 144 2,330 6,391 6,021 Mar. 3*.......... 259,580 9,023 7,826 822 335 40 175,811 81,111 2,035 1,288 3,695 167 2,350 6,786 5,993 10*.......... 258,059 7,787 6,459 907 326 95 175,211 81,235 2,028 792 3,754 138 2,377 6,593 6,010 17*.......... 259,663 8,278 7,323 495 360 100 176,183 81,841 2,033 826 3,676 158 2,370 6,750 6,155 24 *.......... 257,950 7,440 6,538 537 291 74 175,816 81,458 2,038 876 3,516 142 2,361 6,726 6,162 31*.......... 260,092 8,287 6,883 880 391 133 176,290 81,208 2,048 858 3,970 129 2,357 7,014 6,264 New York City 1970 Mar. 4............ 53,717 1,238 1,179 41,899 25,670 12 850 1,886 12 748 1,836 1,581 11............. 53,945 1,781 1,699 41,402 25,682 12 591 1,927 10 746 1,654 1,584 1 8 54,229 1,864 1,816 41,590 25,950 12 268 1,963 12 749 1,696 1,569 2 5 53,986 1,455 1,399 41,858 25,726 12 475 2,276 13 745 1,721 1,554 1971 Feb. 3............ 58,024 1,671 1,519 107 42,490 25,412 16 1 ,146 2,186 12 619 2,132 1 ,406 10............. 57,289 1,317 1,201 44 42,468 25,468 15 1,371 2,137 13 615 1,957 1,399 1 7 56,408 1,048 1,001 17 42,452 25,658 15 671 2,223 13 616 2,134 1,427 2 4 56,986 1,693 1,588 15 42,344 25,754 15 1,000 2,080 16 614 1,936 1,468 Mar. 3*.......... 57,412 1,467 1,395 15 42,975 25,734 17 1,059 2,391 17 615 2,176 1,459 10*.......... 56,197 551 456 49 42,390 25,746 17 614 2,480 18 618 1,973 1,464 17*.......... 56,974 1,367 1,291 15 42,613 25,825 17 647 2,412 20 617 2,094 1,478 24*.......... 55,849 646 610 10 42,334 25,716 17 695 2,247 22 613 2,067 1,456 31*.......... 56,048 390 363 14 11 42,419 25,591 17 601 2,702 22 601 2,190 1,463 Outside New York City 1970 Mar. 4............ 180,109 5,660 4,479 952 163 126,578 52,663 1,994 193 1,227 84 1,625 3,827 3,915 11............ 178,639 4,677 3,763 701 190 126,127 52,589 1,985 226 1,213 84 1,614 3,556 3,863 1 8 179,017 4,560 4,200 172 144 126,678 53,022 1,993 161 1,250 86 1,619 3,677 3,867 2 5 178,965 4,381 4,028 202 96 126,481 52,770 1,995 119 1,266 87 1,616 3,686 3,884 1971 Feb. 3............ 200,943 8,019 6,120 1,457 328 114 132,531 54,872 1,994 267 1,243 134 1,706 4,854 4,606 10............ 201,981 8,935 6,657 1,886 353 39 132,263 54,874 1,997 226 1,195 130 1,706 4,671 4,598 17............ 200,130 6,746 6,060 300 338 48 132,394 55,095 2,017 103 1,245 129 1,707 4,578 4,590 24............ 200,182 7,319 5,865 1,104 342 132,194 55,046 2,008 174 1,187 128 1,716 4,455 4,553 Mar. 3*........ 202,168 7,556 6,431 765 335 132,836 55,377 2,018 229 1,304 150 1,735 4,610 4,534 10*..... 201,862 7,236 6,003 861 326 132,821 55,489 2,011 178 1,274 120 1,759 4,620 4,546 17*........ 202,689 6,911 6,032 434 360 133,570 56,016 2,016 179 1,264 138 1,753 4,656 4,677 24*........ 202,101 6,794 5,928 511 291 133,482 55,742 2,021 181 1,269 120 1,748 4,659 4,706 31*........ 204,044 7,897 6,520 878 377 133,871 55,617 2,031 257 1,268 107 1,756 4,824 4,801 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 o 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 Bills icates Do­ For­ ment govts. 2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large Banks— Total 1970 33,445 503 1,410 20,174 951 13,871 22,344 2,972 2,934 13,850 2,588 ............................Mar. 4 33,435 453 1.460 20,179 948 13,718 22,120 2,808 2,925 13,816 2,571 ........................................11 33,476 449 1,544 20,135 985 13,785 21,919 2,563 3,063 13,750 2,543 ........................................18 33,485 486 1.461 20,165 965 13,832 21,872 2,526 3,157 13,690 2,499 ........................................25 1971 34,274 457 1,458 21,703 790 13,734 28,576 6,270 4,719 14,840 2,747 ...........................Feb. 3 34,291 465 1,454 21,633 797 13,719 28,259 5,868 4,717 14,954 2,720 ........................................10 34,362 534 1,481 21,579 779 13,890 27,762 5,425 3,033 15,007 4,297 ........................................17 34,416 462 1,465 21,567 774 13,704 27,593 5,232 2,994 15,221 4,146 ........................................24 34,401 418 1,504 21,545 760 13,758 28,222 5,949 3,032 15,207 4,034 .........................Mar. 3*> 34,483 427 1,507 21,499 762 13,606 28,123 5,862 3,056 15,264 3,941 ......................................IOp 34,477 470 1,450 21,511 757 13,709 27,709 5,467 3,045 15,193 4,004 ......................................\lv 34,528 483 1,395 21,538 789 13,804 27,046 4,706 3,123 15,164 4,053 ......................................24p 34,553 454 1,338 21,591 783 13,723 28,060 5,676 3,141 15,186 4,057 ......................................31p New York City 1970 3,355 300 730 1,646 579 2,694 4,248 972 314 2.656 306 .........................Mar. 4 3,344 251 793 1.640 588 2,580 4,295 1,013 327 2.657 298 ......................................11 3.357 237 875 1.640 606 2,656 4,235 956 359 2,630 290 ......................................18 3.358 266 809 1,644 580 2,679 4,151 840 391 2,636 284 ......................................25 1971 3,527 145 815 1,899 495 2,680 5,790 1,491 903 2,969 427 .........................Feb. 3 3,525 146 800 1,860 505 2,657 5,548 1,242 889 2,985 432 ......................................10 3,546 223 824 1,859 491 2,752 4,972 1,073 383 2,880 636 ......................................17 3,552 145 831 1,857 494 2.582 5,062 1,115 376 2,984 587 ......................................24 3,559 148 870 1,845 480 2,605 5,030 1,283 386 2,867 494 .........................Mar. 3p 3.591 136 873 1,839 485 2,536 5,238 1,430 409 2,860 539 ......................................10 v 3.592 172 839 1,835 482 2.583 5,052 1,223 401 2,855 573 ......................................17® 3,617 169 783 1,841 501 2,590 4,826 964 421 2,870 571 ......................................24p 3,607 142 723 1,823 481 2,456 5,384 1,459 429 2,875 621 ......................................31p Outside New York City 1970 30.090 203 680 18,528 372 11,177 18,096 2,000 2,620 11,194 2,282 .........................Mar. 4 30.091 202 667 18,539 360 11,138 17,825 1,795 2,598 11,159 2,273 ......................................11 30,119 212 669 18,495 379 11,129 17,684 1,607 2,704 11,120 2,253 ......................................18 30,127 220 652 18,521 385 11,153 17,721 1,686 2,766 11,054 2,215 ......................................25 1971 30,747 312 643 19,804 295 11,054 22,786 4,779 3,816 11,871 2,320 .........................Feb. 3 30,766 319 654 19,773 292 11,062 22,711 4,626 3,828 11,969 2,288 ......................................10 30,816 311 657 19,720 288 11,138 22,790 4,352 2,650 12,127 3,661 ......................................17 30,864 317 634 19,710 280 11,122 22,531 4,117 2,618 12,237 3,559 ......................................24 30,842 270 634 19,700 280 11,153 23,192 4,666 2.646 12,340 3,540 .........................Mar. 3 v 30,892 291 634 19,660 277 11,070 22,885 4,432 2.647 12,404 3,402 ......................................10p 30,885 298 611 19,676 275 11,126 22,657 4,244 2,644 12,338 3,431 ......................................\lv 30,911 314 612 19,697 288 11,214 22,220 3,742 2,702 12,294 3,482 ......................................24p 30,946 312 615 19,768 302 11,267 22,676 4,217 2,712 12,311 3,436 ......................................31? For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ APRIL 1971 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 Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants 3 other partici­ other5 pation4 Large Banks— Total 1970 Mar. 4............................. 36,107 3,693 28,496 1,052 2,866 34,593 15,920 2,865 4,790 646 13,561 306,201 11............................. 36,477 3,855 28,515 1,061 3,046 32,536 15,206 3,094 4,479 649 13,548 302,096 18............................. 36,635 4,023 28,678 1,025 2,909 34,463 17,762 3,098 4,662 666 13,449 307,346 25............................. 36,904 4,089 28,664 1,082 3,069 29,248 16,861 3,189 4,379 667 13,595 300,890 1971 Feb. 3............................. 45,680 6,486 32,919 1,210 5,065 31,870 17,978 3,202 6,358 725 14,897 333,997 10............................. 46,028 6,688 33,044 1,234 5,062 30,802 16,105 3,381 7,021 724 14,912 332,215 1 7 46,136 6,838 32,972 1,238 5,088 36,931 21,808 3,454 7,319 733 14,799 341,582 24............................. 46,025 6,850 32,981 1,159 5,035 29,520 17,212 3,529 6,410 734 14,503 329,076 Mar. 3 *......................... 46,524 6,808 33,347 1,179 5,190 33,232 18,471 3,159 6,655 737 15,031 336,865 10*........................... 46,938 7,088 33,510 1,158 5,182 30,671 18,625 3,307 6,551 736 14,780 332,729 17*........................... 47,493 7,203 33,748 1,194 5,348 33,723 19,508 3,373 6,717 737 14,730 338,451 24 p........................... 47,648 7,118 33,959 1,214 5,357 29,639 18,167 3,431 6,362 737 15,325 331,611 31*........................... 47,455 6,898 33,831 1,193 5,533 36,286 19,479 3,327 7,488 737 15,494 New York City 1970 Mar. 4........................... 6,332 1,002 4,540 82 708 17,672 4,512 392 392 288 4,979 81,952 11........................... 6,467 996 4,609 91 771 17,584 3,802 406 382 288 4,956 81,363 1 8 6,540 1,046 4,675 89 730 18,603 4,752 399 362 289 4,888 83,522 2 5 6,522 1,079 4,597 93 753 16,141 4,512 392 298 290 4,905 80,524 1971 Feb. 3............................ 8,073 1,489 5,239 134 1 ,211 14,437 4,359 430 1,128 340 5,315 84.033 10........................... 7,956 1,375 5,342 111 1,128 15,461 4,642 446 1,546 341 5,308 85.033 17........................... 7,936 1,440 5,273 100 1 ,123 17,251 6,112 435 1,612 343 5,314 87,475 24........................... 7,887 1,431 5,241 88 1,127 13,695 4,431 423 1,185 345 5,224 82,289 Mar. 3*......................... 7,940 1,348 5,348 94 1,150 15,357 3,786 408 1,206 346 5,423 83,938 10*......................... 8,018 1,518 5,292 94 1,114 15,075 5,131 428 1,211 346 5,271 83,659 17*......................... 7,942 1,498 5,225 100 1,119 16,261 4,531 436 1,293 346 5,230 85,071 24*......................... 8,043 1,329 5,444 91 1,179 14,463 5,081 423 1,110 346 5,734 83,006 31*......................... 7,855 1,326 5,181 93 1,255 18,904 5,153 412 1,904 346 5,767 88,534 Outside New York City 1970 Mar. 4. 29,775 2,691 23,956 970 2,158 16,921 11,408 2,473 4,398 358 8,582 224,249 11. 30,010 2,859 23,906 970 2,275 14,952 11,404 2,688 4,097 361 8,592 220,733 18. 30,095 2,977 24,003 936 2,179 15,860 13,010 2,699 4,300i 377 8,561 223,824 25. 30,382 3,010 24,067 989 2,316 13,107 12,349 2,797 4,081 377 8,690 220,366 1971 Feb. 3... 37,607 4,997 27,680 1,076 3,854 17,433 13,619 2,772 5,230i 385 9,582 249,964 10. 38,072 5,313 27,702 1,123 3,934 15,341 11,463 2,935 5,475 383i 9,604 247,182 17... 38,200 5,398 27,699 1 ,138 3,965 19,680' 15,696 3,019 5,707 3901 9,485 254,107 24. 38,138 5,419 27,740| 1,071 3,908: 15,825 12,781 3,106 5,225: 389' 9,279 246,787 Mar. 3*., 38,584 5,460i 27,999 1,085 4,040I 17,875 14,685 2,751 5,449» 391 9,608 252,927 10*. 38,920 5,570i 28,218 1,064 4,0681 15,596i 13,494 2,879» 5,340> 390> 9,509 249,070 17*. 39,551 5,705 28,523 1,094l 4,229» 17,462 14,977 2,937 5,424t 391 9,500 253,380 24*. 39,605 5,789' 28,515 1,123i 4,178I 15,176i 13,086 3,008I 5,252! 391 9,591 248,605 31*. 39,600 5,572! 28,6501 1,100► 4,278! 17,382: 14,326 2,915i 5,584^ 391 9,727 254,369 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts. 2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large Banks— Total 1970 136,146 91,594 6,512 5,365 18,558 610 837 2,191 10,479 95,893 45,677 35,675 6,914 275 7,099 ............Mar. 4 131,897 91,014 5,966 2,961 17,907 571 713 2,180 10,585 96,268 45,783 35,774 6,999 284 7,174 ...........................11 135,912 90,243 5,983 5,509 18,570 558 760 2,850 11,439 96,732 45,931 35,845 7,117 267 7,347 ...........................18 130,762 89,223 6,360 4,018 16,643 489 788 2,370 10,871 97,354 45,982 36,220 7,234 276 7,415 ............................25 1971 141,118 94,435 7,179 6,747 21,461 700 789 2,332 7,475 123,628 49,456 53,733 14,153 1,555 4,253 ............Feb. 3 137,736 93,091 6,642 4.873 21,927 663 799 2.380 7,361 124,575 49,793 54,273 14,325 1,564 4,129 ............................10 145,510 98,310 7,045 5,235 22,952 735 836 2,505 7,892 124,772 50,139 54,415 14,155 1,559 3,974 ............................17 135,249 93,744 6,483 4,320 20,175 608 796 2,319 6,804 125,842 50,458 54,889 14,497 1,533 3,931 ............................24 141,127 96,064 6,693 4,924 22,251 639 770 2,229 7,557 127,092 51.024 55,412 14,676 1,573 3,860 ............Mar. 3p 136,351 95,189 6,264 3,065 20,814 616 742 2,360 7,301 128,155 51,546 55,972 14,656 1,579 3,824 ............................10 p 140,449 97,533 6,181 3,926 21,310 644 733 2.380 7,742 129,021 52.025 56,034 14,649 1 ,555 4,167 ..........................\lv 134,079 95,125 6,469 2,135 19,650 594 739 2,243 7,124 129,075 52,377 55,868 14,599 1,566 4,111 ..........................24? 146,453 99,265 6,957 2.873 24,704 785 804 2,271 8,794 129,175 52,973 55,544 14,485 1,532 4,080 ..........................3\p New York City 1970 42,825 22,574 648 1,154 7,721 340 680 1,538 8,170 13,597 4,355 4,156 129 150 4,701 ............Mar. 4 42,038 22,095 571 642 7,861 320 545 1,522 8,482 13,720 4,370 4.206 130 157 4,752 ............................11 43,920 21,028 554 1,458 8,421 310 602 2,193 9,354 13,851 4,388 4.206 132 140 4,880 ............................18 41,451 21,132 540 821 7,515 256 632 1,734 8,821 14,075 4,391 4,355 135 147 4,942 ............................25 1971 42,251 22,073 926 1,850 9,817 386 644 1,729 4,826 19,724 4,710 10.619 1,050 875 2,335 ............Feb. 3 42,146 22,228 529 1,079 10,611 361 642 1,742 4,954 19,971 4,748 10,938 1,032 858 2,262 ............................10 44,059 23,223 771 1,115 10,654 388 677 1,812 5,419 19,955 4,795 10,983 1,027 855 2,162 ............................17 40,030 22,375 550 850 9,304 320 623 1,653 4,355 20,290 4,830 11,302 1,020 856 2,149 ............................24 42,397 22,716 508 1 10,282 328 620 1,590 4,961 20,697 4,886 11.620 1,142 836 2,086 .............Mar. 3? 40,916 22,632 483 9,621 309 595 1,741 4,828 20,988 4,962 11,885 1,131 821 2,060 ............................10p 42,567 23,383 549 9,883 342 573 1,698 5,282 21,125 5,032 11,855 1,090 784 2,235 ............................17 p 39,994 22,610 653 9,138 309 582 1,609 4,786 21,092 5,( 11,775 1,117 803 2,176 ............................24 p 46,755 24,452 664 12,543 424 650 1,605 5,866 21,074 5,182 11,633 1,170 786 2,170 ............................31 p Outside New York City 1970 93,321 69,020 5,864 4,211 10,837 270 157 653 2,309 82,296 41,322 31,519 6,785 125 2,398 ..........Mar. 4. 89,859 68,919 5,395 2,319 10,046 251 168 658 2,103 82,548 41,413 31,568 6,869 127 2,422 ............................11 91,992 69,215 5,429 4,051 10,149 248 158 657 2,085 82,881 41,543 31,639 6,985 127 2,467 ............................18 89,311 68,091 5,820 3,197 9,128 233 156 636 2,050 83,279 41,591 31,865 7,099 129 2,473 ............................25 1971 98,867 72,362 6,253 4,897 11,644 314 145 603 2,649 103,904 44,746 43,114 13,103 680 1 ,91 ............Feb. 3 95,590 70,863 6,113 3,794 11,316 302 157 638 2,407 104,604 45,045 43,335 13,293 706 1 ,867 ...........................10 101,451 75,087 6,274 4,120 12,298 347 159 693 2.473 104,817 45,344 43,432 13,128 704 1 ,812 ............................17 95,219 71,369 5,933 3,470 10,871 288 173 666 2,449 105,552 45,628 43,587 13,477 677 1,782 ...........................24 98,730 73,348 6,185 3,532 11,969 311 150 639 2,596 106,395 46,138 43,79 13,534 737 1 ,774 ............Mar. 3p 95,435 72,557 5,781 2,358 11,193 307 147 619 2.473 107,167 46,584 44,08 13,525 758 1 ,764 ...........................10p 97,882 74,150 5,632 3,069 11,427 302 160 682 2,460 107,896 46,993 44,179 13,559 771 1,932 ...........................17p 94,085 72,515 5,816 1,828 10,512 285 157 634 2,338 107,983 47,289 44,093 13,482 763 1 ,935 ...........................24p 99,698 74,813 6,293 2,322 12,161 361 154 666 2,928 108,101 47,791 43,911 13,315 746 1 ,910 ...........................31p For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ APRIL 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits n ties of pur­ F.R. ties Secur­ ac­ loans invest­ mand banks chased, Banks Others etc. 8 Loans ities counts (gross) ments deposits to etc. 7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed i o Total to to foreign justed 9 IPC’s others bran­ ches Large Banks— Total 1970 Mar. 4...................... 17,866 237 2,816 25.516 4,037 23,614 169,214 227,665 77,630 10,986 4,886 6,100 12,350 11...................... 17,980 346 2,772 25,107 4.033 23,618 168,072 226,669 78,493 11,143 4,926 6,217 12,477 18...................... 18,433 456 2,683 25.516 4,036 23,504 168,227 226,781 77,370 11,326 4,947 6,379 12,419 25...................... 16,591 1,334 2,543 24,699 4.033 23,500 168,262 227,038 80,853 11,795 5,322 6,473 11,885 1971 Feb. 3...................... 19,043 218 1,034 19,941 4.071 24,865 176,615 250,871 81,040 26,995 17,502 9,493 6,432 10...................... 19,048 236 968 20,645 4.071 24,857 176,660 250,947 80,134 27,415 17,843 9,572 6,234 1 7 19,890 1,500 964 19,947 4.069 24,849 175,045 248,943 80,392 27,225 17,795 9,430 5,871 2 4 18,035 227 933 19,772 4.070 24,868 175,635 249,253 81,234 27,489 18,024 9,465 5,667 Mar. 3 *.................... 19,174 245 887 19,159 4.077 25,023 176,590 251,336 80,720 27,824 18,192 9,632 5,018 10?.................... 17,880 1,503 829 18,741 4.078 25,112 176,112 251,173 81,801 28,179 18,573 9,606 4,807 17*.................... 19,691 551 828 18,678 4,076 25,077 176,668 251,870 81,490 28,391 18,482 9,909 4,177 24?.................... 18,481 795 865 19,067 4.078 25,091 176,235 250,929 82,655 28,128 18,251 9,877 4,321 31®.................... 18,852 377 828 17,768 4,059 25,312 177,240 252,755 82,590 27,523 17,708 9,815 3,051 New York City 1970 Mar. 4...................... 4,808 323 13,097 1.203 6,098 41,658 52,238 16,278 2,661 527 2,134 8,066 11...................... 4,669 324 13,307 1.203 6,101 41,233 51,995 15,951 2,732 545 2,187 8,107 1 8 4,973 60 324 13,154 1,202 6,038 41,401 52,176 15,438 2,796 552 2,244 8,038 2 5 4,469 115 315 12,883 1.203 6,013 41,648 52,321 16,974 3,004 728 2,276 7,751 1971 Feb. 3...................... 5,090 116 9,413 1,210 6,229 42,497 56,360 16,147 8,063 5,716 2,347 4,141 10...................... 5,698 83 9,704 1.209 6,222 42,438 55,942 14,995 8,306 6,022 2,284 3,866 17...................... 6,293 499 84 9,153 1.210 6,222 42,276 55,184 15,039 8,310 6,058 2,252 3,776 24...................... 5,573 83 8,893 1,214 6,206 42.304 55,253 16,181 8,514 6,295 2,219 3,449 Mar. 3p.................... 4,681 82 8,606 1,216 6,259 42,899 55,869 15,366 8,731 6,472 2,259 3,059 10^.................... 4,783 800 82 8,539 1,216 6,335 42,349 55,605 15,513 8,954 6,741 2,213 3,096 17*.................... 5,171 '320 72 8,254 1.219 6,343 42,517 55,511 15,566 9,018 6,663 2,355 2,550 24?.................... 5,233 393 72 8,676 1.219 6,327 42,201 55,070 16,086 8,995 6,615 2,380 2,712 31 p.................... 5,337 71 7,686 1,200 6,411 42.304 55,543 14,757 8,820 6,381 2,439 1,846 Outside New York City 1970 Mar. 4. 13,058 237 2,493 12,419 2.834 17.516 127,556 175,427 61,352 S, 325 4,359 3,966 4,284 11. 13,311 346 2,448 11,800 2.830 17.517 126,839 174,674 62,542 8,411 4,381 4,030 4,370 18. 13,460 396 2,359 12,362 2.834 17,466 126,826 174,605 61,932 8,530 4,395 4,135 4,381 25. 12,122 1,219 2,228 11,816 2.830 17,487 126,614 174,717 63,879 8,791 4,594 4,197 4,134 1971 Feb. 3. 13,953 218 918 10,528 2,861 18,636 134,118 194,511 64,893 18,932 11,786 7,146 2,291 10. 13,350 236 885 10,941 2,862 18,635 134,222 195,005 65,139 19,109 11,821 7,288 2,368 17. 13,597 1,001 880 10,794 2.859 18,627 132,769 193,759 65,353 18,915 11,737 7,178 2,095 24. 12,462 227 850 10,879 2.856 18,662 133,331 194,000 65,053 18,975 11,729 7,246 2,218 Mar. 3 p. 14,493 245 805 10,553 2,861 18.764 133,691 195,467 65,354 19,093 11,720 7,373 1,959 10P. 13,097 703 747 10,202 2,862 18,777 133,763 195,568 66,288 19,225 11,832 7,393 1,711 17*. 14,520 231 756 10,424 2.857 18,734 134,151 196,359 65,924 19,373 11,819 7,554 1,627 24®. 13,248 402 793 10,391 2.859 18.764 134,034 195,859 66,569 19,133 11,636 7,497 1,609 31*. 13,515 377 757 10,082 2.859 18,901 134,936 197,212 67,833 18,703 11,327 7,376 1,205 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com­ 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1971 1971 1971 1970 1970 Industry Mar. Mar. Mar. Mar. Mar. Mar. Feb. Jan. IV III 2nd 1st 31 24 17 10 3 half half Durable goods manufacturing: Primary metals.................................... 2,315 2,323 2,296 2,282 2,214 141 54 -26 169 -169 149 -20 81 Machinery............................................ 5.182 5,186 5,314 5,378 5,273 -168 103 -182 -247 -595 -173 -768 271 Transportation equipment............... 2,837 2,859 2,908 2,892 2,885 41 -107 -26 -92 -69 238 169 127 Other fabricated metal products... 1,976 1,981 1,969 1,942 1,943 69 56 -57 68 -269 -75 -344 249 Other durable goods.......................... 2,703 2,688 2,693 2,632 2,620 90 157 -98 149 -249 51 -198 237 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,567 2,605 2,664 2,674 2,677 -76 119 -342 -537 549 -199 350 -499 Textiles, apparel, and leather.......... 2,484 2,471 2,480 2,444 2,407 82 214 -130 166 -522 127 -395 376 Petroleum refining.............................. 1.183 1,370 1,380 1,415 1,402 -197 -58 -88 -343 -105 -8 -113 -79 Chemicals and rubber....................... 2,812 2,822 2,815 2,800 2,781 31 120 -119 32 -22 85 63 -128 Other nondurable goods.................. 1,893 1,911 1,923 1,887 1,902 4 -5 -104 -105 -214 101 -113 27 Mining, including crude petroleum and natural gas............................. 3,895 3,890 3,886 3,* 3,910 -25 5 -108 -181 -76 -257 -577 Trade: Commodity dealers.................. 1,322 1,304 1,323 1,282 1,306 5 -60 -2 -57 375 106 481 -292 Other wholesale........................ 3,711 3,742 3,743 3,694 3,675 81 54 -125 10 26 52 78 54 Retail.......................................... 4,207 4,133 4,172 4,111 4,141 135 62 -35 162 -201 -107 -308 173 Transportation...................................... 6,286 6,282 6,257 6,196 6,236 141 12 133 286 119 247 366 -96 Communication...................................... 1,357 1,414 1,376 1,371 1,378 -59 -4 112 49 46 -27 19 -250 Other public utilities............................ 2,021 2,078 2,182 2,160 2,326 -365 13 25 -327 -240 -146 -386 -831 Construction.......................................... 3,583 3,550 3,537 3,520 3,508 117 55 172 146 51 197 66 Services................................................... 7,198 7,192 7,182 7,188 7,197 -35 -74 -91 -200 300 225 525 -147 All other domestic loans..................... 4,746 4,671 4,750 4,735 4,732 79 15 -274 -180 -52 148 96 -115 Bankers’ acceptances............................ 1,527 1,571 1,570 1,660 1,596 -110 130 -184 -164 945 241 1,186 -203 Foreign commercial and industrial loans................................................ 2,549 2,525 2,517 2,462 2,420 145 6 -11 140 198 57 255 -84 Total classified loans........................... 68,354 68,568 68,937 68,621 68,529 63 599 -1,619 -957 -184 1,068 884 -1,640 Total commercial and industrial loans 81,208 81,458 81,841 81,235 81,111 427 742 -1,579 -410 372 1,607 1,979 -1,940 See Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- 1971 1970 1971 1970 1970 Industry M 3 a 1 r. F 2 e 4 b. J 2 a 7 n. D 3 e 0 c. N 2 o 5 v. O 2 c 8 t. Se 3 p 0 t. A 2 u 6 g. J 2 u 9 ly I IV III II h 2 a n l d f Durable goods manufactur­ ing: Primary metals.................... 1,630 1,564 1,544 1,527 1,535 1,548 1,677 1,474 1,523 103 -150 157 68 7 Machinery............................ 2,591 2,634 2,666 2,681 2,690 2,826 2,924 2,920 2,824 -90 -243 140 -16 -103 Transportation equipment. 1,613 1,633 1,647 1,633 1,621 1,627 1,655 1,608 1,599 -20 -22 91 -11 69 Other fabricated metal products............................ 733 747 750 742 801 781 807 789 770 -9 -65 45 3 -20 Other durable goods.......... 1,216 1,222 1,107 1,089 1,131 1,136 1,141 1,135 1,158 127 -52 9 -30 -43 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 974 971 949 985 932 984 1,008 968 968 -11 -23 1 47 -22 Textiles, apparel, and leather................................ 617 659 674 657 703 720 751 733 767 -40 -94 -11 36 -105 Petroleum refining.............. 915 1,142 1,191 1,213 1,220 1,230 1,248 1,183 1,199 -298 -35 -18 11 -53 Chemicals and rubber........ 1,850 1,834 1,800 1,849 1,738 1,693 1,780 1,664 1,687 1 69 71 -96 140 Other nondurable goods. . 1,100 1,116 1,116 1,171 1,159 1,171 1,183 1,106 1,098 -71 -12 112 -75 100 Mining, including crude pe­ troleum and natural gas. 3,123 3,270 3,354 3,326 3,329 3,419 3,461 3,381 3,489 -203 -135 -121 -127 -256 Trade: Commodity dealers. . 80 79 79 79 83 73 82 82 80 1 -3 -6 10 -9 Other wholesale......... 782 754 783 756 739 727 697 704 708 26 59 5 -4 64 Retail........................... 1,417 1,459 1,450 1,399 1,371 1,351 1,360 1,334 1,292 18 39 52 102 91 Transportation......................... 4,867 4,763 4,731 4,564 4,453 4,443 4,417 4,347 4,425 303 147 141 -55 288 Communication....................... 402 398 398 415 415 386 448 487 424 -13 -33 40 -68 7 Other public utilities............... 973 1,056 1,029 1,018 1,022 1,017 1,065 1,042 1,031 -45 -47 32 -128 -15 Construction............................ 1,107 1,063 1,048 1,044 1,005 972 957 985 959 63 -87 46 8 189 3,142 3,154 3,186 3,209 3,208 3,069 3,132 3,060 3,049 -67 77 115 22 192 All other domestic loans 1,268 1,319 rl,346 1,285 1,716 1,241 1,225 1,242 1,267 -17 60 -2 15 56 Foreign commercial and in­ dustrial loans................... 1,792: 1,716 1,723 1,716 1,283 1,612 1,604 1,599 1,599 76 112 -16 21 96 Total loans................................ 32,192: 32,553 r32,571 32,358 32,205 32,026 32,622 31,843 31,916 -166 -264 883 -267 619 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 □ APRIL 1971 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1970—Dec. 2........... 3,491 2,450 1,041 1,832 462 1,370 9........... 3,424 2,403 1,022 1,853 459 1,394 16........... 3,155 2,261 894 1,830 440 1,390 23........... 3,029 2,170 859 1,846 449 1,397 30........... 2,735 1,899 836 1,890 442 1,448 1971—Jan. 6........... 2,832 1,964 868 1,929 453 1,476 13........... 2,723 1,908 815 1,902 432 1,470 20........... 2,667 1,882 785 1,903 425 1,478 27........... 2,600 1,832 768 1,908 427 1,481 Feb. 3........... 2,725 1,817 908 1,914 435 1,479 10........... 2,704 1,816 888 1,909 429 1,480 17........... 2,608 1,777 831 1,883 423 1,460 24........... 2,622 1,807 815 ’"1,872 r411 rl,461 Mar. 3........... 2,610 1,713 897 1,875 412 1,463 10.......... 2,562 1,701 861 1,885 417 1,468 17........... 2,472 1,636 836 1,868 421 1,447 24........... 2,401 1,614 787 1,872 420 1,452 31........... 2,560 1,556 1,004 1,849 412 1,437 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) Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 1970 Percentage distribution of dollar amount Less than 7.50................................ 9.7 .8 4.7 3.7 2.3 1.4 3.5 1.0 6.7 .5 13.6 .7 7.50.................................................... 35.1 .3 4.3 .7 5.9 .5 17.8 .5 27.5 47.3 .2 16.6 .3 4.2 1.0 77..501-7.99......6.............1..8....0...................2. 22.7 .1 16.4 .4 8.00.................................................... 8.9 41.9 10.7 8.7 11.0 8.2 11.5 19.5 11.3 36.5 7.2 57i3 8.01-8.49.......................................... 6.8 20.1 7.3 6.0 11.3 8.8 10.8 19.2 7.6 25.0 4.7 21.4 8.50................................................... 5.8 7.9 8.0 6.3 10.8 11.0 8.0 11.6 6.6 10.0 4.1 5.6 8.51-8.99.......................................... 3.7 7.3 9.7 8.0 10.1 13.4 7.8 12.7 2.2 6.8 1.7 4.4 9.00................................................... 3.6 6.2 11.6 14.0 9.8 13.4 6.4 9.4 4.3 6.7 1.4 3.7 9.01-9.49.......................................... 1.9 4.2 10.1 12.9 7.3 11.7 3.2 7.7 2.3 4.1 .5 1.6 9.50................................................... 2.5 3.4 7.9 11.2 7.4 9.3 4.1 5.7 2.0 3.9 1.2 1.3 Over 9.50......................................... 5.4 7.4 21.6 27.3 17.1 21.6 8.9 12.4 6.9 6.3 1.9 3.4 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: Dollars (millions)...................... 4,208.6 4,193.4 39.6 38.7 378.4 402.6 777.0 815.1 566.3 574.3 2,447.3 2,362.7 Number (thousands)................. 27.8 28.6 9.9 9.7 12.0 12.7 4.0 4.2 .9 .9 1.0 1.1 Center Weighted average rates (per cent per annum) 35 centers........................................ 8.07 8.50 8.89 9.15 8.79 9.07 8.34 8.75 8.09 8.46 7.74 8.25 New York City.......................... 7.74 8.24 8.67 9.07 8.60 8.95 8.12 8.59 7.83 8.24 7.59 8.12 7 other Northeast..................... 8.47 8.89 9.00 9.41 9.09 9.42 8.60 9.01 8.30 8.68 7.99 8.49 8 North Central........................ 8.05 8.47 8.71 8.90 8.72 8.99 8.36 8.79 8.26 8.46 7.78 8.27 7 Southeast................................. 8.15 8.49 8.72 8.76 8.64 8.79 8.16 8.54 7.95 8.45 7.78 8.15 8 Southwest................................ 8.08 8.53 8.85 9.08 8.53 8.84 8.26 8.59 7.99 8.48 7.69 8.33 4 West Coast.............................. 8.16 8.54 9.41 9.51 8.99 9.19 8.38 8.81 8.12 8.61 7.90 8.28 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

APRIL 1971 □ 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 1929................................... 5 Vl-6 1951—Jan. 8........... 21/2 1959—May 18........... 41/2 1969—Jan. 7 7 Oct. 17........... 234 Sept. 1........... 5 Mar. 17 71/2 1 1 9 93 30 1 . . . .. .. . . . . . . . . .. .. . . . . . . . . .. .. . . . . . . . . .. .. . . . . . . . . .. .. . . . . . . . . .. .. .. . 2 31 % /2 - - 5 6 Dec. 19........... 3 1960—Aug. 23 41/2 June 9 8V4 1 1 19 9 9 3 3 1 3 3 4 9 2 — 4 .. 7 .. .. ( . N .. . . . . . o . . . . v . . . . . . . . . ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 I * 1 1/ / 4 2 2 - - 4 4 1 1 1 9 9 9 5 5 5 4 3 5 — — — A O M A p c u a t g r r . . . . 2 1 1 4 7 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 31 * % / 4 2 1 1 9 9 6 6 5 6 — — J D A M u u e n a c g r e . . . 2 6 9 . . . . . . . . . . . . . . . . . . . .. 5 5 5 6 1 3 / 4 2 1970— N D S N M e e o o a p c v v r t . . . . . 2 2 2 2 1 1 5 2 3 2. . . . . . . . . . . . . . . . . . . . . m 7 1 6 8 V M 4 Effective date 1956—A Au p g r. . 2 1 1 3. . . . . . . . . . . . . . . .. .. .. 3 4 34 1967—J N M a o n a v . r . . 2 2 0 0 7 6-27... 5 5 6 1 1 / / 2 2-534 1971— J J J a a a n n n . . . 1 1 6 8 5 . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . 6 6 6 1 1/ /4 2 Feb. 16 . . , 5V4 1947—Dec.1................. 1V4 1957—Aug. 41/2 1968—Apr. 19 61/2 Mar. 11........... 5*4-5% Sept. 25 ........ 6 -614 Mar. 19........... 51/4 1948—Aug.1................. 2 1958—Jan. 22.......... 4 Nov. 13 . ... 6V4 Apr. 21.......... 31/2 Dec. 2.......... 61/2 1950—Sept. 22........... 21/4 Sept. 11.......... 4 Dec. 18........... 634 1 Date of change not available. MONEY MARKET RATES (Per cent per annum) U.S. Government secutities (taxable)4 Finance Prime CO. Prime Period m 4 p c - o o a t n m p o t e h l 6 r . s - 1 m d 3 p i p - o r l a e a t n p c o c t t e e h l 6 d r y s - , 2 9 b a 0 a a c n n d c c k e a e e p y s r t , s s ­ 1 ’ F f r e u a d n t e e d r 3 s al n R ew at 3 e i - s m o su n o e nth b M i y l a l i s e r 5 l k d et n R ew at 6 e i - s m o su n o e nth b M i y ll a i s e r 5 l k d et B k 9 e i - l t l t s y o i ( e m 1 l 2 d a - ) r m 5 ­ ont O h t i h ss e u r e 6 s 3 is - y s t e u o a e r s 5 7 - 1963.............................. 3.55 3.40 3.36 3.18 3.157 3.16 3.253 3.25 3.30 3.28 3.72 1964.............................. 3.97 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1965.............................. 4.38 4.27 4.22 4.07 3.954 3.95 4.055 4.05 4.06 4.09 4.22 1966.............................. 5.55 5.42 5.36 5.11 4.881 4.85 5.082 5.06 5.07 5.17 5.16 1967.............................. 5.10 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 1968.............................. 5.90 5.69 5.75 5.66 5.339 5.33 5.470 5.48 5.45 5.62 5.59 1969.............................. 7.83 7.16 7.61 8.22 6.677 6.64 6.853 6.84 6.77 7.06 6.85 1970.............................. 7.72 7.23 7.31 7.17 6.458 6.42 6.562 6.55 6.53 6.90 7.37 1970—Mar................... 8.33 7.68 7.60 7.76 6.710 6.63 6.598 6.59 6.52 6.88 7.20 Apr................... 8.06 7.26 7.54 8.10 6.480 6.50 6.568 6.61 6.54 6.96 7.49 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 6.555 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 Sept................... 7.32 7.12 7.03 6.29 6.244 6.12 6.450 6.47 6.40 6.68 7.24 Oct.................... 6.85 6.76 6.54 6.20 5.927 5.90 6.251 6.21 6.23 6.34 7.06 Nov................... 6.30 6.16 5.79 5.60 5.288 5.28 5.422 5.42 5.39 5.52 6.37 Dec................... 5.73 5.48 5.32 4.90 4.860 4.87 4.848 4.89 4.87 4.94 5.86 1971—Jan..................... 5.11 5.07 4.77 4.14 4.494 4.44 4.510 4.47 4.39 4.29 5.72 Feb.................. 4.47 4.37 4.09 3.72 3.773 3.69 3.806 3.78 3.84 3.80 5.31 Mar................... 4.19 4.05 3.80 3.71 3.323 3.38 3.431 3.50 3.61 3.66 4.74 Week ending— 1970—Dec. 5........... 5.63 5.50 5.38 5.50 5.084 4.98 4.979 4.95 4.93 5.05 5.81 12........... 5.75 5.49 5.48 4.91 4.882 4.92 4.874 4.94 4.91 5.06 5.80 19........... 5.75 5.50 5.25 5.07 4.775 4.77 4.785 4.81 4.79 4.88 5.82 26........... 5.75 5.45 5.25 4.84 4.727 4.82 4.765 4.87 4.88 4.85 5.96 1971—Jan. 2........... 5.75 5.44 5.25 4.82 4.830 4.87 4.836 4.88 4.86 4.85 5.94 9........... 5.68 5.41 5.23 3.82 4.921 4.84 4.927 4.89 4.71 4.76 5.99 16........... 5.38 5.25 4.88 4.27 4.640 4.51 4.633 4.55 4.48 4.40 5.78 23........... 4.85 4.93 4.48 4.13 4.213 4.20 4.243 4.22 4.19 3.87 5.58 30........... 4.53 4.69 4.45 4.23 4.201 4.19 4.235 4.24 4.18 4.11 5.54 Feb. 6............ 4.63 4.63 4.35 4.09 4.110 4.06 4.114 4.11 4.11 4.03 5.49 13............ 4.63 4.53 4.13 3.59 3.845 3.71 3.839 3.75 3.80 3.82 5.33 20............ 4.38 4.31 4.03 4.14 3.640 3.56 3.679 3.65 3.72 3.70 5.24 27............. 4.25 4.03 3.85 3.46 3.497 3.43 3.590 3.57 3.68 3.64 5.15 Mar. 6........... 4.25 3.88 3.75 3.41 3.347 3.35 3.467 3.44 3.64 3.69 5.07 13........... 4.25 4.08 3.70 3.29 3.307 3.28 3.359 3.39 3.52 3.56 4.75 20........... 4.20 4.13 3.83 3.93 3.307 3.39 3.416 3.51 3.57 3.59 4.55 27........... 4.05 4.13 3.80 3.70 3.331 3.37 3.481 3.54 3.63 3.68 4.56 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 □ APRIL 1971 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 Total1 term) Total i 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 1970........... 6.59 6.42 6.12 6 75 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 1970—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 June. 6.99 7.12 6.81 7.41 8.77 8.48 9.25 8.55 8.76 9.06 7.57 4.17 7.50 Tulv 6.57 6.68 6.40 7.02 8.85 8.44 9.40 8.61 9.11 9.01 7.62 4.20 Auff........................................ 6.75 6.27 5.96 6.65 8.73 8.13 9.44 8.44 9.19 8.83 7.41 4.07 Sept. 6.63 6.18 5.90 6.49 8.68 8.09 9.39 8.40 9.10 8.80 7.31 3.82 6.34 Oct 6.59 6.41 6.07 6.74 8.63 8.03 9.33 8.35 9.06 8.74 7.33 3.74 Nov....................................... 6.24 6.04 5.79 6.33 8.65 8.05 9.38 8.37 9.06 8.77 7.30 3.72 Dec........................................ 5.97 5.49 5.21 5.80 8.35 7.64 9.12 7.95 8.96 8.45 6.88 3.46 1971—Jan......................................... 5.91 5.34 5.08 5.65 8.04 7.36 8.74 8.57 8.70 8.17 6.53 3.32 Feb........................................ 5.84 5.28 4.92 5.73 7.75 7.08 8.39 7.24 8.39 7.94 6.32 3.18 Mar........................................ 5.71 5.26 5.00 5.56 7.84 7.21 8.46 7.36 8.39 8.08 6.48 3.10 Week ending— 1971—Jan. 2............................... 6.16 5.49 5.25 5.75 8.19 7.48 8.97 7.75 8.86 8.31 6.92 3.36 9............................... 6.09 5.59 5.40 5.80 8.16 7.45 8.90 7.71 8.84 8.26 6.79 3.36 16............................... 5.96 5.30 5.00 5.60 8.10 7.42 8.82 7.66 8.76 8.22 6.62 3.35 23............................... 5.83 5.24 4.95 5.60 8.02 7.36 8.69 7.54 8.63 8.19 6.33 3.30 30............................... 5.78 5.24 4.95 5.60 7.87 7.19 8.54 7.38 8.57 8.01 6.38 3.26 Feb. 6................................ 5.80 5.39 5.10 5.75 7.79 7.10 8.47 7.26 8.52 7.96 6.30 3.20 13................................ 5.78 5.16 4.75 5.65 7.74 7.06 8.40 7.20 8.41 7.94 6.34 3.17 20................................ 5.83 5.24 4.85 5.75 7.72 7.07 8.34 7.22 8.32 7.93 6.24 3.15 27................................ 5.92 5.35 5.00 5.80 7.74 7.10 8.34 7.25 8.32 7.95 6.41 3.19 Mar. 6............................... 5.94 5.46 5.15 5.85 7.78 7.13 8.40 7.27 8.37 8. CO 6.43 3.18 13............................... 5.77 5.24 4.95 5.60 7.84 7.20 8.47 7.32 8.40 8.11 6.53 3.11 20............................... 5.65 5.14 4.90 5.40 7.88 7.26 8.50 7.38 8.40 8.13 6.44 3.05 27................................ 5.54 5.18 5.00 5.40 7.86 7.25 8.47 7.42 8.38 8.07 6.46 3.10 Number of issues2......................... 7 20 5 5 119 20 30 40 29 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Govt.: Averages of daily figures for bonds maturing or callable in 10 years arately. Because of a limited number of suitable issues, the number or more. (2) State and local govt.: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are 23, 1967, Aaa-rated railroad bonds are no longer a component of the from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend /price ratios 2 Number of issues varies over time; figures shown reflect most recent are 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 Bonds: Monthly and weekly yields are computed as follows: (1) U.S. adjusted at annual rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ SECURITY MARKETS A 35 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks 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 ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l i NYSE AMEX 196 7 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 4,508 196 8 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 6,353 196 9 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 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 1970—Ma r 62.04 75.6 62.8 88.65 96.95 37.33 59.04 49.46 51.53 36.85 40.77 67.37 25.15 10,141 3,122 Apr........ 60.89 71.9 62.8 85.95 94.01 36.05 57.19 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 Sept........ 60.10 72.3 60.8 82.58 90.66 29.14 54.44 45.10 47.43 30.43 36.74 60.13 21.72 14,423 4,438 Oct......... 60.44 71.9 61.3 84.37 92.85 31.73 53.37 46.06 48.87 32.38 36.01 59.04 22.39 11,887 3,135 Nov........ 63.27 75.1 61.9 84.28 92.58 30.80 54.86 45.84 48.54 31.23 36.71 57.40 21.73 11,519 2,677 Dec........ 65.63 79.8 64.7 90.05 98.72 32.95 59.96 49.00 51.68 33.70 39.93 61.95 22.19 15,241 4,330 1971—Ja............n 66.10 79.9 66.5 93.49 102.22 36.64 63.43 51.29 53.72 37.76 42.52 66.41 23.56 17,429 4,493 Feb........ 66.78 81.5 66.8 97.11 106.62 38.78 62.49 53.42 56.45 40.37 42.30 68.19 25.02 19,540 6,054 Mar........ 67.94 82.8 65.8 99.60 109.59 39.70 62.42 54.89 58.43 41.71 41.60 70.66 25.88 16,955 5,570 Week ending— 1971—Mar. 6. 65.89 80.4 65.7 97.56 107.30 39.61 61.24 53.68 57.02 41.06 41.11 68.90 25.41 16,472 5,573 13. 67.40 82.9 65.9 99.42 109.41 39.95 62.08 54.77 58.33 41.81 41.47 69.87 25.87 18,315 6,354 20. 68.47 83.4 65.9 101.05 111.21 40.03 63.13 55.66 59.34 42.38 41.84 71.36 26.12 18,268 6,079 27. 65.51 83.9 66.0 100.02 110.03 39.38 62.93 55.18 58.73 41.50 41.81 71.48 26.00 15,598 4,712 i 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% hours per day, or 27% 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 on 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 I, 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 t g ) r e & i s M (y a e tu ar r s i ) ty L c p r ( a o e p ri t n a e c i n t o r e ) / (t d h c p o o P h r l u u l i a a s c r s . r e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r e s t g ) r e & i s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c t n o r e ) / (t d h c o o p P h l u r u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o s a a u . r n n s o ) t f 1964......................... 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965......................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966......................... 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967.......................... 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968......................... 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969......................... 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 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 1.11 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 June............. 8.31 .99 25.1 71.3 36.3 25.6 8.19 .98 23.0 71.5 30.5 21.5 July............. 8.32 1.01 25.1 71.5 35.3 24.9 8.21 .95 23.1 71.5 31.0 21.7 Aug.............. 8.35 .98 24.8 71.6 35.7 25.5 8.25 .89 23.1 71.7 30.4 21.4 Sept.............. 8.31 1.03 25.2 72.7 35.3 25.3 8.27 .88 22.8 71.7 29.7 21.0 Oct............... 8.33 1.05 25.1 72.4 34.6 24.8 8.20 .88 22.8 71.5 29.0 20.5 Nov.............. 8.26 .99 25.3 72.1 35.8 25.2 8.18 .85 22.8 71.5 29.9 21.1 Dec............... 8.20 1.07 '25.8 r73.8 '35.3 r25.8 8.12 r. 85 23.3 71.9 30.7 '21.7 1971—Jan.r............ 8.03 .92 25.8 73.3 36.2 26.4 7.94 .82 23.5 72.5 30.7 22.0 Feb............... 7.75 1.01 26.3 74.0 36.6 26.6 7.67 .78 24.0 73.2 31.2 22.5 i 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 □ APRIL 1971 STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In millions of dollars) (Per cent of total adjusted debt, except as noted) Credit extended to Cus­ Cus­ Net Adjusted debt/collateral value End of period margin customers by— to d m n e e b e t i r t s’tom f n r e e e e t rs’ t c e r n e e x d d ­ e i d t (per cent) j T u a o s d t t e a ­ d l Bro l kers Ba 2 nks Total a b n a c l e ­ s c a b r n e a c d l e ­ i s t bro b k y ers 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 ( l d i m o eb n il s t ­ of Unre­ dol­ 1970—Feb.................. 4,570 2,390 6,960 6,562 2,463 4,099 strict­ Restricted lars) Mar................. 4,520 2,370 6,890 6,353 2,441 3,912 ed 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 June................; ’{3*860} 2,290 6,150 5,281 2,009 3,272 1970— M Fe a b r . . . . 4 3 . .7 2 2 2 7 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................. 3,800 2,290 6,090 (4) 52,180 (4) Apr.. 1.5 21.8 16.7 12.1 9.3 38.6 8,450 Aug................. 3,810 2,300 6,110 (4) 2,083 (4) Sept................. 3,920 2,330 6,250 (4) 2,236 (4) Oct................... 4,010 2,270 6,280 (4) 2,163 (4) Unrestricted Restricted1 Nov................. 4,010 2,320 6,332 (4) 2,197 (4) Dec.................. 4,030 2,330 6,360 (4) 2,286 (4) May. 1.0 4.8 31.8 13.9 8.8 39.8 9,100 1971—Jan................... 4,000 2,300 6,300 (4) 2,452 (4) June. 1.3 1.0 23.3 24.9 9.4 40.1 8,490 Feb.................. 4,090 2,330 6,420 (4) 2,743 (4) July.. 1.1 1.0 32.7 16.7 9.0 39.5 8,610 Aug.. .7 1.1 37.8 14.3 9.2 36.9 8,580 Sept.. .6 1.1 45.5 12.0 8.9 31.9 8,900 1 End-of-month data. Total amount of credit extended by member firms Oct... .7 1.0 38.4 18.0 9.2 32.6 8,780 of the N.Y. Stock Exchange in margin accounts, excluding credit extended Nov.. 1.0 0.9 39.0 16.4 9.7 33.0 8,570 on convertible bonds and other debt instruments and in special subscrip­ Dec.. .0 .3 47.0 13.7 9.5 29.4 8,140 tion accounts. 2 Figures are for last Wed. of month for large commercial banks re­ 1971—Jan. . .0 .4 55.1 12.5 8.4 23.6 8,180 porting weekly and represent loans made to others than brokers or dealers Feb. . .0 .4 56.2 13.2 7.7 22.5 8,410 for the purpose of purchasing or carrying securities. Excludes loans col­ lateralized by obligations of the U.S. Govt. 3 Change in series. From Jan. 1966 to June 1970 the total of broker- i Debt representing more than 30 per cent but less than 35 per cent of extended margin credit was estimated by expanding the total of such collateral value is unrestricted as of May 6, 1970, but is not separable from credit extended by a small sample of N.Y. Stock Exchange member firms the remainder of this category. according to the proportion of total Customers’ net debit balances ex­ t m en a d rg e i d n b c y r e t d h i e t s e is fi d r e m ri s v . e B d e g fr i o nn m in r g e p w o i r th ts J b u y n e t h 3 e 0 , m 19 a 7 jo 0 r , i t t o y ta o l f b N ro .Y ke . r S -e t x o t c e k n d E e x d ­ for N th o t in e . R — e A gu d l j a u t s i t o e n d T d e a b n t d i s o c ft o e m n p d u if t f e e d rs i n fr o a m cc o th rd e a s n a c m e e w c i u th s t r o e m qu e i r r ’ e s m ne e t n t d s e s b e it t change member firms that carry margin accounts for customers; these balance mainly because of the inclusion of special miscellaneous accounts firms, as a group, account for nearly all such credit extended by members of in adjusted debt. Collateral in the margin accounts covered by these data that exchange. now consists exclusively of stocks listed on a national securities exchange. 4 Series discontinued. Unrestricted accounts are those in which adjusted debt does not exceed the 5 Change in series. loan value of collateral; accounts in all classes with higher ratios are Note.—Customers’ net debit and free credit balances are end-of-month restricted. 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 of the reporting firm and of its general partners. Net debit balances are SPECIAL MISCELLANEOUS ACCOUNT BALANCES total debt owed by those customers whose combined accounts net to a AT BROKERS, BY EQUITY STATUS OF ACCOUNTS debit. Free credit balances are in accounts of customers with no unfulfilled commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit (Per cent of total, except as noted) and free credit balances since the latter are available for the brokers’ use until withdrawn. Equity class of accounts EQUITY STATUS OF MARGIN ACCOUNT DEBT Net in debit status Total AT BROKERS End of period credit balance (Per cent of total debt, except as noted) status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n r s s ) Total Equity class (per cent) debt 1970—Feb......................... 53.0 38.3 8.8 4,420 (mil­ 54.0 34.7 11.2 4,340 End of lions 54 0 35.9 10.2 4,140 period d o o f l ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er 5 4 0 9 . .5 3 3 39 8 . . 1 8 1 1 0 1 . . 9 4 4 4, , 8 5 4 5 0 0 lars) 1 July........................ 47.5 40.5 11.9 4,390 46.7 42.6 10.7 4,430 46.6 44.5 9.0 4,480 1970—Feb.. 4,670 15.7 21.1 16.3 13.3 11.1 22.5 46.2 43.9 9.9 4,430 Mar.. 4,520 15.3 20.3 15.8 13.4 11.2 24.0 45.5 43.9 10.6 4,240 Apr.. 4,360 11.8 18.1 14.5 13.8 11.6 30.2 48.2 42.3 9.4 4,030 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 1971—Jan.......................... 49.2 43.6 7.2 4,260 July.. 3,800 8.1 15.1 21.1 16.0 13.8 25.8 Feb......................... 49.1 44.2 6.7 4,380 Aug.. 3,810 10.7 15.1 22.9 16.6 13.6 21.1 Sept.. 3,920 11.4 18.3 24.4 16.7 13.1 16.0 Oct... 4,010 9.9 15.2 25.5 16.9 14.3 18.2 Note.—Special miscellaneous accounts contain credit balances that Nov.. 4,010 10.4 14.8 26.1 17.5 14.1 17.2 may be used by customers as the margin deposit required for additional Dec.. 4,030 11.0 16.1 27.1 16.8 13.5 15.5 purchases. Balances may arise as transfers based on loan values of other collateral in the customer’s margin account or deposits of cash (usually 1971—Jan. . 4,000 12.1 19.6 28.3 17.1 10.0 12.8 sales proceeds) occur. Feb.. 4,090 11.4 19.5 31.1 16.3 9.3 12.3 1 See note 1 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 values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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 Heldby— 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 l a a n le k d Other2 Total Own Bills Own e F i o g r n ­ U i n n i t t o ed U f n ro it m ed other bills bought acct. corr. 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 2,053 196 9 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970—Mar.. 37,164 1,223 12,411 5,295 18,235 5,352 1,398 1,156 242 52 170 3,732 1,891 1 ,113 2,349 Apr.. 38,011 1,088 12,647 5,584 18,692 5,614 1,577 1,314 263 106 194 3,737 2,034 1,137 2,444 May. 39,724 1,126 12,826 6,474 19,298 5,801 1,539 1,287 252 42 231 3,989 2,139 1,189 2,472 June. 37,798 1,044 11,945 6,559 18,250 5,849 1,589 1,339 250 32 232 3,996 2,190 1,162 2,497 July.. 36,961 986 11,048 6,834 18,093 5,973 1,599 1,324 275 37 239 4,098 2,294 1,198 2,482 Aug.. 36,570 802 11,242 6,501 18,025 5,979 1,911 1,541 370 63 253 3,752 2,354 1,294 2,331 Sept.. 33,958 505 12,013 4,115 17,325 5,848 1,952 1,557 395 87 235 3,574 2,396 1,285 2,167 Oct... 34,401 520 12,564 3,179 18.138 6,167 2,125 1,737 388 73 238 3,731 2,553 1,323 2,292 Nov.. 33,966 526 12,775 2,600 18,065 6,267 2,368 1,875 493 87 243 3,569 2,490 1,388 2,390 Dec.. 31,765 409 12,262 1,940 17,154 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971—Jan.*. 32,295 362 13,071 1,668 17,194 6,912 2,742 2,058 684 59 270 3,841 2,589 1,555 2,768 Feb.* 32,506 383 13,538 1,518 17,067 6,984 3,189 2,406 784 54 266 3,475 2,618 1,520 2,847 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— commitments 3 End of period M ga o g r e t­ Other G U o .S vt . . S g l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r g l r i T e e a a t s n o b i n e e e t i r d s a l r v i a l ­ e l D i e t p s o 2 s­ l O ia t t i b h e 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 classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 196 0 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 1,200 196 1 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 1,654 196 2 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 2.548 1 19 9 6 6 3 4 4 3 0 6 , ,0 32 0 8 7 7 6 3 0 9 7 5 5, , 7 8 9 6 1 3 4 39 4 1 0 5 5, ,0 09 7 9 4 1,0 9 0 1 4 2 7 8 9 8 9 6 4 5 9 4 , . 7 23 0 8 2 4 4 4 8, ,6 84 0 9 6 9 9 4 8 3 9 4 4 , , 1 4 5 0 3 0 2 2 . , 5 8 4 2 9 0 196 5 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 196 6 47.193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 196 7 50,311 1,203 4,319 219 8,183 993 1,138 66.365 60,121 1,260 4,984 742 982 799 2,523 196 8 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 3,011 196 9 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 1970—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 67,855 1,713 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 Aug.... 56,986 2,249 3,271 197 12,099 972 1.464 77.238 69,222 2,327 5,689 603 406 332 715 2,057 Sept.. . 57,202 2.240 3,281 197 12,222 1,001 1.459 77,602 69,817 2,087 5,698 635 334 266 691 1,926 Oct.... 57,398 2,291 3.215 207 12,243 1,035 1.465 77,855 70,093 2,051 5,712 596 338 274 666 1,875 Nov__ 57,473 2,332 3,219 205 12,378 1,112 1,483 78,202 70,361 2,111 5,730 564 315 311 662 1,852 Dec.r . 57,775 2,255 3,151 197 12,876 1.270 1,471 78,995 71,580 1,690 5,726 619 322 302 1,931 1971—Jan.... 58,014 2,365 3,196 206 13,457 1,129 1,564 79,930 72,441 1,739 5,750 638 322 285 705 1,950 Feb.... 58.194 2,592 3,328 222 13,919 1.270 1,575 81,100 73,366 1,926 5,809 723 352 283 790 2,148 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-19. 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. loans beginning with Aug. 1967. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 SAVINGS INSTITUTIONS □ APRIL 1971 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period a T s o s t e a ts l Total U St n a i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks M ga o g r e t s ­ e R s e ta a t l e P lo o a li n c s y a O ss th et e s r 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--Dec................................. 197,208 10,914 4,514 3,221 3,179 84,566 70,859 13,707 72,027 5,912 13,825 9,964 1970—Jan.................................. 197,677 10,962 4,532 3,242 3,188 84,764 71,542 13,222 72,340 5,923 14,060 9,628 Feb................................. 198,506 10,980 4,527 3,250 3,203 85,021 71,600 13,421 72,527 5,984 14,295 9,699 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 July................................ 201,002 11,071 4,650 3,251 3,170 85,404 72,200 13,204 73,352 6,144 15,354 9,677 Aug................................. 201,918 11,090 4,653 3,255 3,182 85,841 72,497 13,344 73,427 6,158 15,517 9,885 Sept................................. 203,148 11,004 4,561 3,265 3,178 86,675 72,915 13,760 73,540 6,202 15,674 10,053 203,922 11,029 4,565 3,277 3,187 87,099 73,389 13,710 73,728 6,255 15,813 9,998 Nov................................ 205,064 11,049 4,588 3,281 3,180 87,755 73,644 14,111 73,848 6,311 15,918 10,183 Dec................................. 206,193 10,967 4,494 3,285 3,188 88,183 73,123 15,060 74,345 6,362 16,025 10,311 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 ge rt s ­ I s n i m e t v i c e e e u s n s r t l 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 d y3 p L ro o i c a n e n s s s Other d p M u er r a i i d o n e d g O e p u in n e t g s d ri t o a a o d n t f d ­ 1961... 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1 ,136 1,872 1962... 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,193 1963... 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,572 1964... 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,549 1965... 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2,707 1966... 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1 ,270 2,136 1,482 1967... 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3,004 1968... 130,802 i 11,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3,584 1969 5. 140,347 10,893 2,439 8,620 162,299 135,670 11,239 9,728 2,455 3,207 807 2,812 1970 5—Jan............. 140,483 10,900 1,864 8,576 161,823 134,253 11,262 10,207 2,301 3,800 722 2,738 Feb............ 140,706 11,163 2,084 8,649 162,602 134,458 11,259 10,253 2,203 4,429 846 2,815 Mar........... 140,904 11,502 2,223 8,761 163,390 136,053 11,247 10,013 2,171 3,906 1,084 3,041 Apr............ 141,390 11 ,554 2,359 8,852 164,155 136,260 11,252 10,056 2,224 4,363 1 ,391 3,487 May........... 142,113 12,108 2,523 8,986 165,730 137,013 11,254 10,169 2,294 5,000 1,588 3,956 June........... 143,241 12,097 2,643 9,052 167,033 138,814 11,620 10,480 2,461 3,658 1,544 4,038 July............ 144,320 12,742 2,404 8,999 168,465 139,357 11,617 10,555 2,530 4,406 1,700 4,333 Aug............ 145,434 12,826 2,413 9,091 169,764 139,907 11,615 10,622 2,581 5,039 1,531 4,303 Sept........... 146,556 12,850 2,455 9,182 171,043 141,734 11,609 10,705 2,679 4,316 1,628 4,354 Oct............. 147,712 13,277 2,715 9,248 172,952 142,825 11,588 10,721 2,747 5,071 1,711 4,539 Nov........... 148,896 13,340 3,155 9,356 174,747 143,928 11,592 10,691 2,838 5,698 1,628 4,633 Dec............ 150,562 13,058 3,520 9,434 176,574 146,744 12,012 10,942 3,087 3,789 1,602 4,393 1971—Jan.r............ 151,503 15,506 2,930 9,386 179,325 149,298 12,056 10,494 3,055 4,422 1,665 4,565 Feb............... 152,638 16,812 3,236 9,523 182,209 151,743 12,060 10,080 3,157 5,169 2,054 5,225 1 U.S. Govt, securities only through 1967. Beginning 1968 the total ments are comparable with those shown for mutual savings banks (on reflects liquid assets and other investment securities. Included are U.S. preceding page) except that figures for loans in process are not included Govt, obligations, Federal agency securities, State and local govt, securi­ above but are included in the figures for mutual savings banks. ties, time deposits at banks, and miscellaneous securities, except FHLBB 5 Balance sheet data for all operating savings and loan associations stock. Compensating changes have been made in “Other assets.” were revised by the Federal Home Loan Bank Board for 1969 and 1970. 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings Note.—Federal Home Loan Bank Board data; figures are estimates for and fixtures. See also note 1. all savings and loan assns. in the United States. Data are based on 3 Consists of advances from FHLBB and other borrowing. monthly reports of insured assns. and annual reports of noninsured assns. 4 Insured savings and loan assns. only. Data on outstanding commit­ Data for current and preceding year are preliminary even when revised. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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 va A t n o d c ­ es I m nv e e n s ts t­ C a d a n e s d ­ h B a o n n d ds M b d e e e m r ­ ­ C s a to p c it k al M l g o a a o g n r e s t­ D t a e u n b re d e s n­ c L o o o to a p n e s r­ D t e u b re e s n­ L a d o n i a s d n ­ s D t e u b re e s n­ M ga o g r e t­ Bonds m be e r m s ­ posits notes posits (A) n ( o L te ) s at ( i A ve ) s (L) co ( u A n ) ts (L) lo (A an ) s (L) 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 1970. 10,614 3,864 105 10,183 2.332 1,607 15.502 15.206 2.030 1,755 4.974 4.799 7.186 6.395 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 c6,032 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. 10,372 2,704 70 10,029 1,194 1,592 14,085 13,401 1,762 1,518 5,034 4,980 7,026 6,259 Aug.. 10,445 2,729 99 10,091 1,244 1,595 14,452 13,976 1,778 1.537 5,015 4,918 7,061 6.339 Sept.. 10,524 2,722 109 10,089 1,340 1,598 14,815 14,396 1,852 1.537 4,998 4,839 7,101 6.339 Oct.. 14,702 14,702 1,973 1,601 4,972 4,818 7,137 6.395 Nov.. 15,397 15,067 2,020 1,700 4,934 4,767 7,156 6.395 Dec.. 10,614 3,864 105 10,183 2,332 1,607 15.502 15.206 2.030 1 ,755 4.974 4.799 7.186 6.395 1971—Jan. 10,326 4,101 112 9,836 2,751 1,599 15,619 15,311 2,119 1,786 5,055 4,845 7,210 6.395 Feb.. 15,552 15,111 2,164 1,819 5,177 4,959 7,258 6,645 Note.—Data from Federal Home Loan Bank Board, Federal National offered securities (excluding, for FHLB’s bonds held within the FHLB Mortgage Assn., and Farm Credit Admin. Among omitted balance System) and are not guaranteed by the U.S. Govt.; for a listing of these sheet items are capital accounts of all agencies, except for stock of FHLB’s. securities, see table below. Loans are gross of valuation reserves and Bonds, debentures, and notes are valued at par. They include only publicly represent cost for FNMA and unpaid principal for other agencies. OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, FEBRUARY 28, 1971 Cou­ Amount Cou­ Amount Cou­ Amount Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon (millions and maturity rate of dollars) and maturity rate of dollars) and maturity rate of dollars) Federal home loan banks1 Federal National Mortgage Federal intermediate Notes : Association—Cont. credit banks Debentures: Debentures: Bonds: 3/11/68 - 3/11/71 ___ 6.00 350 6/1/70 - 3/1/71 ......... 8.15 511 2/25/69 - 2/25/71.. 6.60 200 2/10/70 - 4/12/71___ 8.75 500 7/1/70 - 4/1/71......... 8.05 491 7/25/69 - 2/25/71. . 8.00 400 11/10/69 - 5/10/71. . . 8.20 400 8/3/70 - 5/3/71.......... 7.25 472 3/25/70 - 3/25/71 . . 7.70 850 4/10/69 - 6/10/71___ 6.85 250 9/1/70-6/1/71........... 7.30 274 9/25/69 - 4/26/71 . . 8 % 250 12/12/69 - 7/12/71. . . 8.60 400 10/1/70 - 7/1/71. . .. 7.10 537 4/27/70 - 4/26/71 . . 7.25 400 8/23/60 - 8/10/71 ___ 4Vs 63 11/2/70 - 8/2/71___ 6.80 584 5/26/69 - 5/25/71 . . 7.00 350 4/10/70 - 8/10/71___ 7.38 200 12/1/70 - 9/1/71___ 5.70 412 5/25/70 - 5/25/71 . . 8.20 500 7/10/70 - 8/10/71____ 8.05 250 1/4/71 - 10/4/71 5.30 375 2/25/70 - 6/25/71 . . 8.45 650 9/11/61 - 9/10/71 ___ 41/2 96 2/1/71 - 11/1/71........ 4.55 675 7/27/70 - 7/27/71 . . m 500 9/10/68 - 9/10/71 53/4 350 3/2/70 - 3/1/73......... 8.15 203 8/25/70 - 8/25/71 . . 7.65 650 6/10/70 - 10/21/71 . . . 8.45 500 9/1/70-7/2/73........... 7.75 200 9/25/70 - 9/27/71 . . 7.35 400 5/10/69 - 11/10/71. . . 6.85 350 1/4/71 _ 7/1/74........ 5.95 224 10/27/69 - - 11/26/71 8.20 250 3/10/70 - 12/10/71... 6% 500 11/25/69 - ■ 2/25/72. 8.20 200 2/10/60 - 2/10/72___ 5^ 98 Federal land banks 6/26/70 - 2/25/72. . 8.20 300 3/10/69 - 3/10/72. . .. 63/4 250 Bonds: 5/25/70 - 5/25/72. . 8.15 200 10/14/69 - 3/10/72. . . 6V4 200 2/15/57 - 2/15/67-72 4'A 72 9/25/70 - 11/27/72. 7M 250 12/11/61 - 6/12/72. . . 4^ 100 2/20/70 - 4/20/71. . . 8y2 300 2/25/70 - 2/26/73. . 8.35 350 2/10/70 - 6/12/72___ 8.70 300 4/20/70 - 4/20/71 . . . 7.35 225 10/27/70 - 8/27/73.. 7.20 450 5/11/70 - 9/11/72___ 8.40 400 5/1/56 - 5/1/71 ......... 3!/2 60 1/26/70 - 1/25/74. . 8.40 300 6/10/70 - 9/11/72___ 7.40 200 7/15/69 - 7/20/71 . . . 8.15 270 6/26/70 - 2/25/74. . 8.40 250 11/10/69 - 12/11/72. . 8.00 200 10/20/69 - 7/20/71 . . 8.45 232 8/25/69 -• 8/25/74. . 7.65 184 10/13/70 - 12/11/72. . 7.20 400 10/20/68 - 10/20/71. 6.00 447 11/25/69 - 11/25/74 8.05 239 11/10/70 - 3/12/73. . . 7.30 450 8/20/68 - 2/15/72. . . 5.70 230 1/26/71 - 2/25/75... 6.10 250 12/12/69 - 3/12/73. . . 8.30 250 2/23/71 - 4/20/72. . . . 4.45 300 8/25/70 - ■ 5/26/75. . 8.00 265 6/12/61 - 6/12/73. . .. 41/4 146 6/22/70 - 7/20/72. . . 8.20 442 7/27/70 - ■ 8/25/75. . 7.95 300 7/10/70 - 6/12/73. . . . 8.35 350 9/14/56 - 9/15/72. . . 3Vh 109 12/18/70 - 11/25/75. 6.50 350 3/10/70 - 9/10/73___ 8.10 300 9/22/69 - 9/15/72. . . 8.35 337 3/25/70 - ■ 2/25/80. . 7.75 350 12/10/70 - 12/10/73. . 5.75 500 10/23/72 - 10/23/72. 5K 200 10/15/70- 10/15/80. 7.80 200 4/10/70 - 3/11/74___ 7.75 350 7/20/70 - 1/22/73. . . 7.95 407 8/5/70 - 6/10/74........ 7.90 400 2/20/63 - 2/20/73-78 4K 148 Federal National Mortgage 9/10/69 - 9/10/74. . .. 7.85 250 1/20/70 - 7/20/73. . . 8.45 198 Association— 2/10/71 -9/10/74......... 5.65 300 8/20/73 - 7/20/73.... 7.95 350 Secondary market 11/10/70 - 3/10/75. . . 7.55 300 4/20/70 - 10/22/73. . 7.80 300 operations 10/13/70 - 9/10/75. . . 7.50 350 2/20/72 - 2/20/74. . . 41/2 155 Discount notes................... 2,410 2/13/62 - 2/10/77. . .. 41/2 198 10/20/70 - 4/22/74. . 7.30 354 Capital debentures: 12/10/70 - 6/10/77. . . 6.38 250 2/20/70 - 1/20/75. . . 8M 220 9/30/68 - 10/1/73......... 6.00 250 1/21/71 - 6/10/81.... 7.25 250 4/20/65 - 4/21/75. . . Ws 200 4/1/70 - 4/1/75............. 8.00 200 2/10/71 -6/10/82......... 6.65 250 2/21/66 - 2/24/76. . . 5.00 123 7/20/66 - 7/20/76. . . 5^ 150 Mo 9 6 r / / 9 t 1 g / / 7 7 ag 0 0 e - - - b 1 a 6 0 c /1 k /2 / e 7 / d 7 1 2 b . . . o . . . . . n . . . . d . . . . . s . . . : . . . . . . 7 8 . .1 5 3 0 4 1 0 5 0 0 Ba D nk e 1 1 b s 1 0 e f / / n o 2 1 r t / /7 7 u c 0 0 r o e o - - s p : e 4 5 r / / a 3 2 t / / i 7 v 7 1 e 1 s . . . . . . . . . . . . . . . . . . 7 6 . . 1 7 0 0 2 3 7 43 0 2 2 5 / / / 2 2 2 3 0 /6 / / 7 6 6 1 7 - - - 4 4 / / 1 2 2 / 0 2 0 2 / / 8 7 /7 1 8 9 _ _ . _ _ _ _ . . 6 5 5 . . K 7 0 0 0 4 2 1 4 2 5 2 4 0 6/1/70 - 6/2/75............. 8.38 250 12/10/70 - 6/1/71 5.70 371 9/29/70- 10/1/90........... 8.63 200 1/4/71 - 7/1/71 ........... 5.25 320 2/1/71 -8/2/71.............. 4.50 415 10/1/70 - 10/1/73. . .. 7.30 100 1 Data for changes in Oct. and Nov. 1970 not yet available. Digitized for FRNAoStEe.—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 o APRIL 1971 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public - Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus: ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 1967.......................... 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 -25,161 21,357 5,944 3,271 2,049 -1,119 23,100 -397 1,700 3,364 196 9 187,784 183,072 1,476 184,548 3,236 6,142 633 7,364 2,089 -1,384 2-1,295 596 1,616 269 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 Half year: 1969—Jan.-June. .. 104,886 90,863 500 91,362 13,523 -4,309 -815 7,643 604 -1,000 -12,370 1,194 1,590 1,630 July-Dee.. .. 90,833 97,563 ,364 98,927 -8,093 14,505 -429 3,935 330 9,811 -767 315 -2,170 1970—Jan.-June. .. 102,910 96,893 767 97,661 5,248 2,693 -1,310 5,451 346 -4,415 2,918 -896 1,188 July-Dee.. .. 87,562 104,084 99 104,183 -16,621 18,240 -19 1,807 157 16,257 54 -952 -534 Month: 1970—Fe b 14,931 14,994 -104 14,891 40 1,275 -789 1,204 -579 -139 191 -404 -114 Mar............... 13,111 16,283 254 16,540 -3,429 3,161 21 770 97 2,314 316 -768 664 Apr................ 22,043 17,858 200 18,057 3,986 -4,813 -39 -285 123 -4,691 85 526 1,317 May............... 13,986 16,337 108 16,445 -2,459 3,893 -278 1,565 599 1,452 -1,008 -1,258 -1,259 June............... 22,561 14,871 480 15,351 7,210 -169 -160 2,909 -82 -3,156 2,034 265 -1,755 July............... 12,609 19,344 -17 19,327 -6,718 5,649 -38 -233 -153 5,997 -646 -386 -312 Aug................ 15,172 17,429 66 17,495 -2,323 4,333 -3 1,539 76 2,716 -58 -367 -818 Sept............... 18,725 17,329 114 17,443 1,281 -2,223 12 -890 27 -1,347 1,497 7 1,570 Oct................. 11,493 17,490 150 17,640 -6,147 1,522 -17 -1,178 122 2,561 -2,383 -192 1,011 Nov............... 14,134 16,616 112 16,728 -2,594 3,440 -5 81 48 3,306 -429 -71 -1,212 Dec................ 15,429 15,876 -326 15,550 -121 5,519 31 2,487 38 3,024 2,185 -54 -772 1971—Ja n 15,773 16,870 245 17,115 -1,341 -818 1,013 -551 86 660 1,518 654 2,854 Feb................ 15,130 16,717 -170 16,546 -1,417 2,324 -1,001 1,464 -382 240 -1,718 -193 -734 Selected balances Treasury operating balance Federal securities End Memo: of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts ba G la o n ld ce Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S is p G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t s c e s i s a : 3 l E p T h u q b o e b u y l t l d a a i l c l s: s c p p o G r o N r i n v o p o s a v s w o t . t e — . r - e 5 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 12,510 76,124 21,599 825 284,880 35,789 Calendar year: 1969.......................... 1 ,312 3,903 112 5,327 368,226 13,820 70,677 21,250 825 289,294 30,578 1970.......................... 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 Month: 1970—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 34,851 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 12,510 76,124 21,599 825 284,880 35,762 July............... 1,200 6,087 111 7,399 376,568 12,471 75,891 21,446 825 290,877 36,398 Aug............... 1,056 6,174 111 7,341 380,901 12,469 77,431 21,521 825 293,593 37,116 Sept............... 1,238 7,489 111 8,839 378,678 12,481 76,541 21,548 825 292,246 37,404 Oct................ 920 5,424 111 6,455 380,200 12,465 75,363 21,669 825 294,808 37,811 Nov............... 587 5,217 110 5,914 383,640 12,460 75,444 21,717 825 298,113 38,252 Dec............... 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 1971—Jan................ 976 8,532 109 9,616 388,341 13,504 77,380 21,842 825 301,798 38,600 Feb.............. 1,064 6,725 109 7,898 390,664 12,503 78,843 21,461 825 302,038 1 Equals net expenditures plus net lending. International Monetary Fund and international lending organizations. 2 The decrease in Federal securities resulting from conversion to private New obligations to these agencies are handled by letters of credit. ownership of Govt.-sponsored corporations (totaling $9,853 million) is 4 Includes accrued interest payable on public debt securities, deposit not included here. In the bottom panel, however, these conversions de­ funds, miscellaneous liability and asset accounts, and seigniorage. crease the outstanding amounts of Federal securites held by the public 5 Includes debt of Federal home loan banks, Federal land banks, D.C. mainly by reductions in agency securities. The Federal National Mortgage Stadium Fund, FNMA (beginning Sept. 1968), FICB, and banks for Association (FNMA) was converted to private owership in Sept. 1968 and cooperatives (beginning Dec. 1968). the Federal Intermediate Credit Banks (FICB) and Banks for Coopera­ tives in Dec. 1968. Note.—Half years may not add to fiscal year totals due to revisions in 3 Represents non-interest-bearing public debt securities issued to the series which are not yet available on a monthly basis, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a t t a i x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Total W he it l h d - N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c E o P r m n t o a a y l t x p l r ­ i e l b o s u y a t m S i n 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 9,527 68,72629,897 1,232 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 196 9 187,78470,18227,258 10,191 87,24938,338 1,660 32,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,908 197 0 193,74377,41626,236 13,24090,412 35,037 2,208 37,190 1,942 3,465 2,70045,298 15,705 2,430 3,644 3,424 Half year: 1969—Jan.-June. 104,88636,44621,743 9,715 48,47422,844 87617,577 1,584 2,039 1,17422,374 7,388 1,106 2,074 1,504 July-Dee.. 90,833 38,797 5,771 481 44,087 15,179 982 17,057 131 1,270 1,282 19,740 8,241 1,263 1,496 1,809 1970—Jan.-June. 102,91038,619 20,465 12,759 46,325 19,858 1,22620,134 1,811 2,196 1,41625,558 7,464 1,168 2,148 1,615 July-Dee.. 87,562 37,445 5,569 56542,449 12,744 1,467 17,768 133 1,348 1,57620,826 8,152 1,317 1,537 2,005 Month: 1970—Feb.. 14,931 7,536 886 n, 446 r6,976 774 '136 4,224 139 842 201 5,406 1,204 165 265 r278 Mar.. 13,111 6,091 1,235 3,907 3,419 4,559 320 3,006 146 64 221 3,436 1,192 202 322 301 Apr.. 22,043 5,748 8,992 4,039 10,701 4,895 317 2,847 1,081 234 259 4,419 1,226 207 599 314 May. 13,986 7,058 1,063 2,863 5,258 862 148 4,585 207 857 202 5,851 1,319 192 348 304 June. 22,561 6,014 3,797 458 9,353 7,517 188 3,294 127 70 278 3,769 1,367 207 328 207 July. 12,609 6,040 477 236 6,281 1,071 234 2,745 186 255 3,185 1,439 218 293 356 Aug.. 15,172 6,985 333 100 7,219 666 182 4,494 587 249 5,330 1,309 223 224 382 Sept.. 18,725 5,907 3,623 81 9,449 4,543 265 2,521 123 47 270 2,962 1,272 218 234 313 Oct... 11,493 5,667 497 55 6,110 1,089 420 2,311 106 280 2,697 1,237 231 262 288 Nov.. 14,134 7,007 216 42 7,181 711 187 3,474 374 259 4,107 1,549 207 239 327 Dec.. 15,429 5,838 422 50 6,209 4,664 179 2,222 ■'9 50 265 2,545 1,346 220 285 339 1971—Jan.. 15,773 6,339 4,280 40 10,579 1,085 558 2,178 113 165 264 2,720 1,195 199 269 286 Feb.. 15,130 7,246 654 1,407 6,493 683 310 4,835 141 721 248 5,944 1,505 175 280 361 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 u g r l r 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 ­ . de C m a v o n e u m l d n o . - p. E m d t a i n u a o n d c n a ­ ­ 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 g r n a a o t c n v r ­ a t s . - ­ housing power tions5 Fiscal year: 1967........................................ 158,254 70,081 4,547 5,423 4,376 1,821 7,594 2,616 5,853 37,885 6,897 12,588 2,510 -3,936 1968........................................ 178,833 80,517 4,619 4,721 5,943 1,655 8,094 4,076 6,739 43,780 6,882 13,744 2,561 -4,499 1969........................................ 184,548 81,232 3,785 4,247 6,221 2,081 7,921 1,961 6,525 49,395 7,640 15,791 2,866 -5,117 1970........................................ 196,588 80,295 3,570 3,749 6,201 2,480 9,310 2,965 7,289 56,785 8,677 18,312 3,336 -6,380 1971 er(>................................. 212,755 76,443 3,586 3,368 5,262 2,636 11,442 3,858 8,300 70,474 9,969 19,433 4,381 -7,197 1972*6................................... 229,232 77,512 4,032 3,151 5,804 4,243 10,937 4,495 8,808 76,749 10,644 19,687 4,970 -7,771 Half Year: 1969—Jan.-June................. 91,362 41,408 1,878 2,114 1,293 860 3,372 928 3,764 25,202 3,975 8,183 1,542 -3,158 July-Dee................... 98,927 40,616 1,941 1,839 5,476 1,515 4,611 1,820 3,120 26,063 4,148 8,623 1,520 -2,365 1970—Jan.-June................. 97,661 39,683 1,627 1,910 711 1,017 4,651 1 ,291 4,314 30,432 4,537 9,687 1,817 -4,015 July-Dee................... 104,183 38,485 1,409 1,720 4,633 1,575 5,794 1,677 3,744 32,710 4,625 9,594 1,823 -3,606 Month: 1970—Feb............................. 14,891 6,199 298 299 -187 r75 r605 160 716 4,511 719 1,614 243 -362 Mar............................ 16,540 6,608 312 325 76 181 683 252 532 5,019 801 1,686 308 -242 Apr............................ 18,057 6,806 336 332 107 185 967 280 642 5,996 751 1,631 272 -249 May............................ 16,445 6,516 296 285 144 211 715 98 694 5,207 806 1,563 312 -401 June........................... 15,351 6,926 225 378 -88 218 1,002 291 1,147 5,001 731 1,655 368 -2,503 July............................ 19,327 6,794 199 268 2,430 208 843 471 553 5,276 732 1,597 190 -234 Aug............................ 17,495 6,253 285 282 720 371 885 259 680 5,289 766 1,705 346 -347 Sept............................ 17,443 6,374 221 282 44 337 1,231 268 651 5,434 722 1,731 396 -250 Oct............................. 17,640 6,354 311 302 927 316 1,105 234 593 5,545 767 1,148 334 -296 Nov............................ 16,728 5,965 234 266 422 283 898 132 534 5,488 829 1,738 264 -324 Dec............................ 15,550 6,745 160 318 90 59 832 314 733 5,678 808 1,676 294 -2,157 1971—Jan............................. 17,115 6,153 184 262 632 -409 826 373 676 5,899 768 1,631 367 -247 Feb............................. 16,546 5,851 236 295 -89 234 759 217 686 5,929 797 1,695 294 -357 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 6 Estimates presented in the Jan. 1971 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 $800 million for ous receipts. fiscal 1971 and $5,969 million for fiscal 1972, are not included. 4 Outlays by functional categories are published in the Monthly Treasury Statement (beginning April 1969). Monthly back data (beginning Note.—Half years may not add to fiscal year totals due to revisions in July 1968) are published in the Treasury Bulletin of June 1969, series which are not yet available on a monthly basis, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 U.S. GOVERNMENT SECURITIES □ APRIL 1971 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 Certifi­ Notes Bonds 2 bonds Total 3 ings cates bonds & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec.. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1962—Dec. 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec. 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec. 317.9 267.5 212.5 56.5 59.0 97.0 3.0 52.0 49.7 46.1 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—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 Sept. 378.7 300.1 239.3 80.7 99.9 58.7 2.4 58.4 52.1 76.7 Oct.. 380.2 302.9 242.2 83.7 99.8 58.7 2.4 58.3 52.2 75.4 Nov. 383.6 306.0 244.4 84.6 101.2 58.6 2.4 59.2 52.4 75.6 Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 52.5 78.1 1971—Jan.. 388.3 308.8 247.7 87.9 101.2 58.5 2.4 58.7 52.6 77.7 Feb. 390.7 309.8 248.1 89.3 104.3 54.5 2.4 59.3 52.8 78.9 Mar. 391.7 309.7 247.5 89.0 104.3 54.2 2.4 59.9 53.0 80.0 1 Includes non-interest-bearing debt (of which $628 million on Mar. 31, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1971, was not subject to statutory debt limitation). bonds. 2 Includes Treasury bonds and minor amounts of Panama Canal and 4 Held only by U.S. Govt, agencies and trust funds and the Federal postal saving bonds. home loan banks. 3 Includes (not shown separately): depositary bonds, retirement plan bonds, foreign currency series, foreign series, and Rural Electrification Note.—Based on Daily Statement of U.S. Treasury. See also second Administration bonds; before 1954, Armed Forces leave bonds; before paragraph in Note to table below. OWNERSHIP OF PUBLIC DEBT (Par value, in billions of dollars) Held by- Held by private investors E pe n r d i o o d f p T g d u r o e b o t b l s a i t s c l ag G t U e a r o n n u .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 M s b a a v u n i t n u k g a s s l p I c a n a o n n s 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 n t e e n d i r g a ­ n l 1 O i m t n o t v 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 66.0 3.6 8.0 14.2 24.4 51.9 23.9 14.3 22.4 1969—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—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 Aug................. 380.9 96.4 59.9 224.6 58.0 2.9 7.2 11.7 24.2 51.7 30.6 16.5 21.8 Sept................. 378.7 95.5 60.0 223.2 56.9 2.9 7.1 10.3 24.0 51.7 31.0 17.4 22.1 Oct.................. 380.2 94.4 60.0 225.8 58.9 2.8 7.0 11.1 24.2 51.9 30.5 18.2 21.4 Nov................ 383.6 94.6 61.2 227.9 59.8 2.7 6.9 10.8 23.2 51.9 30.4 20.0 22.1 Dec................. 389.2 97.1 62.1 229.9 63.2 2.8 7.0 10.6 22.9 52.1 29.8 20.6 21.1 1971—Jan.................. 388.3 96.7 61.8 229.9 62.1 2.7 7.3 11.1 23.0 52.1 29.5 20.9 21.1 Feb.................. 390.7 98.0 62.5 230.2 62.1 2.8 7.2 10.2 23.8 52.3 28.9 22.7 20.1 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

APRIL 1971 o U.S. GOVERNMENT SECURITIES A 43 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 ea -2 rs 0 20 O y v e e a r rs Total Bills Other A11 holders: 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—Dec. 31............................................................. 247,713 123,423 87,923 35,500 82,318 22,554 8,556 10,863 1971—Jan. 31............................................................. 247,667 123,418 87,918 35,500 82,317 22,553 8,542 10,839 Feb. 28............................................................. 248,092 115,534 89,303 26,231 86,011 27,197 8,529 10,821 U.S. Govt, agencies and trust funds: 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—Dec. 31..................................................... 17,092 3,005 708 2,297 6,075 3,877 1,748 2,387 1971—Jan. 31..................................................... 17,209 3,085 804 2,281 6,104 3,885 1,748 2,387 Feb. 28..................................................... 17,101 2,672 804 1,868 6,028 4,266 1,748 2,387 Federal Reserve Banks: 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—Dec. 31..................................................... 62,142 36,338 25,965 10,373 19,089 6,046 229 440 1971—Jan. 31..................................................... 61,783 35,979 25,606 10,373 19,089 6,046 229 440 Feb. 28..................................................... 62,462 32,441 25,800 6,641 23,356 5,875 290 500 Held by private investors: 1968—Dec. 31..................................................... 168,473 77,670 55,222 22,448 50,877 21,223 6,133 12,569 1969—Dec. 31..................................................... 162,414 79,780 57,494 22,286 54,485 9,912 6,075 12,164 1970—Dec. 31..................................................... 168,479 84,080 61,250 22,830 57,154 12,631 6,579 8,036 1971—Jan. 31..................................................... 168,675 84,354 61,508 22,846 57,124 12,622 6,565 8,012 Feb. 28..................................................... 168,529 80,421 62,699 17,722 56,627 17,056 6,491 7,934 Commercial banks: 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—Dec. 31............................................. 50,917 19,208 10,314 8,894 26,609 4,474 367 260 1971—Jan. 31............................................ 49,866 18,483 9,490 8,993 26,393 4,384 359 248 Feb. 28............................................. 49,051 16,100 9,373 6,727 25,890 6,483 354 224 Mutual savings banks: 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—Dec. 31............................................. 2,745 525 171 354 1,168 339 329 385 1971—Jan. 31............................................ 2,701 483 174 309 1,170 337 323 389 Feb. 28............................................. 2,818 462 205 257 1,151 487 335 383 Insurance companies: 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—Dec. 31............................................. 6,066 893 456 437 1,723 849 1,369 1,231 1971—Jan. 31............................................. 6,309 932 495 437 1,764 891 1,413 1,309 Feb. 28............................................ 6,271 812 415 397 1,570 981 1,628 1,278 Nonfinancial corporations: 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—Dec. 31............................................. 3,057 1,547 1,194 353 1,260 242 2 6 1971—Jan. 31............................................ 3,376 1,889 1,522 367 1,266 208 2 12 Feb. 28............................................ 2,909 1,474 1,266 208 1,210 216 3 6 Savings and loan associations: 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—Dec. 31............................................. 3,263 583 220 363 1,899 281 243 258 1971—Jan. 31............................................ 3,259 632 306 326 1,847 288 240 253 Feb. 28............................................. 3,385 624 341 283 1,816 468 224 253 State and local governments: 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—Dec. 31............................................. 11,204 5,184 3,803 1,381 2,458 774 1,191 1,598 1971—Jan. 31............................................ 11,282 5,360 4,086 1,274 2,443 788 1,168 1,524 Feb. 28............................................ 12,079 6,151 5,035 1,116 2,320 923 1,164 1,520 All others: 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—Dec. 31............................................. 91,227 56,140 45,092 11,048 22,037 5,672 3,078 4,298 1971—Jan. 31............................................ 91,882 56,575 45,435 11,140 22,241 5,726 3,060 4,277 Feb. 28............................................ 92,016 54,798 46,064 8,734 22,670 7,498 2,783 4,270 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 5,697 commercial banks, 490 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 744 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 469 nonfinancial corporations and 488 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 503 State and local govts. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks “All others,” a residual, includes hoiaings 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 o APRIL 1971 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total Within 1-5 5-10 Over Dealers and brokers Com­ All securities 1 year years years 10 years U se .S c . u r G it o i v es t, Other m b e a r n c k ia s l other 1970—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 Aug................................. 2,121 1,578 372 146 25 722 74 820 505 398 Sept................................. 2,500 2,041 293 137 28 878 90 931 602 403 Oct.................................. 2,768 2,266 284 190 28 1,018 109 1,094 547 569 Nov................................. 3,418 2,430 601 338 50 1,330 172 1,278 638 712 Dec.................................. 2,590 2,043 343 153 52 949 123 1,025 493 428 1971—Jan................................... 3,482 2,629 564 248 40 1,346 130 1,364 642 671 Feb.................................. 3,317 2,293 579 397 49 1,179 145 1,232 760 679 Week ending— Feb. 3.......................... 2,981 2,215 527 214 26 1,177 106 1,089 609 639 10.......................... 3,680 2,535 679 424 42 1,395 170 1,317 799 874 17.......................... 3,342 2,336 578 369 60 1,263 117 1,343 620 586 24.......................... 3,341 2,183 562 532 64 1,028 166 1,265 881 620 Mar. 3......................... 3,000 2,235 429 293 43 1,063 122 1,116 699 554 10......................... 3,466 2,248 638 507 72 1,193 173 1,444 657 675 17......................... 3,347 2,178 642 479 49 1,190 161 1,235 761 603 24......................... 2,758 1,958 399 340 62 927 124 1,050 658 666 31......................... 2,772 2,010 412 305 45 816 131 1,131 695 401 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 t 1 a h r in y 1 ea -5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e r r s a s G e g t c e o i u e n v s r c t i . y ­ Period sou A r l c l es Y N C o e i r t w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1970—Feb.................. 3,182 2,464 374 330 14 559 1970- 2,995 660 504 650 1,180 Mar................. 3,667 3,116 248 285 17 731 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 2,898 637 830 466 964 June................. 2,199 1,859 111 227 2 615 2,310 422 626 421 842 July................. 3,267 3,102 -18 171 13 828 3,214 855 770 518 1,071 Aug................. 4,474 3,389 454 604 27 819 4,900 1,526 1,168 834 1,373 Sept................. 4,020 3,326 246 433 16 724 4,220 1,164 1,456 449 1,152 Oct................... 3,963 3,449 103 379 33 1,001 4,233 1,370 1,232 392 1,240 Nov................. 4,760 3,399 617 682 62 1,066 5,149 1,517 1,527 416 1,689 Dec.................. 5,571 4,399 612 485 76 1,049 5,949 1,868 1,960 379 1,742 1971—Jan................... 5,634 4,626 525 403 80 966 1971- 6,198 1,888 1,695 527 2,088 Feb.................. 4,655 3,320 569 691 75 946 Feb.............. 5,684 1,673 1,318 369 2,324 Week ending— Weekending— 1971—Jan. 6........... 5,789 4,863 444 417 65 950 1971--Jan. 6.. .. 6,260 1,874 2,039 455 1,892 13........... 5,588 4,776 367 391 54 860 13.... 6,094 1,669 1,729 467 2,229 20........... 5,224 4,338 455 351 80 897 20.... 5,508 1,513 1,487 426 2,081 27........... 5,714 4,726 632 249 107 1,108 27.... 6,374 2,141 1,534 626 2,073 Feb. 3.......... 5,777 3,912 909 852 104 1,037 Feb. 3.... 7,238 2,462 1,956 568 2,252 10.......... 4,781 3,162 730 798 92 970 10.... 6,769 2,164 1,916 475 2,215 17.......... 4,399 3,199 449 680 70 873 17.... 5,835 1,559 1,072 328 2,876 24.......... 4,165 3,100 397 615 53 927 24.... 4,315 1,064 674 377 2,201 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 table on the left, 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

APRIL 1971 □ GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MARCH 31, 1971 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont Apr. 1, 1971. 3,305 Aug. 26, 1971......... 1,402 Oct. 1, 1972.....1*4 33 Sept. 15, 1967-72.• 2*4 1,951 Apr. 8, 1971. 3,404 Aug. 31, 1971......... 1,704 Apr. 1, 1973.... • 1 Vi 34 Dec. 15, 1967-72..21/2 2,566 Apr. 15, 1971. 3,408 Sept. 2, 1971......... 1,401 May 15, 1973.,...7% 5,842 Aug. 15, 1971,... .4 2,805 Apr. 22, 1971. 3.403 Sept. 9, 1971......... 1,401 Aug. 15, 1973.,..• 8 y8 1,839 Nov. 15, 1971 ,., •3% 1,087 Apr. 22, 1971 f 4,262 Sept. 16, 1971......... 1,401 Oct. 1, 1973 .,.1*4 30 Feb. 15, 1972 ., .4 981 Apr. 29, 1971. 3.403 Sept. 23, 1971......... 1,601 Feb. 15, 1974 .,.7% 3,141 Aug. 15, 1972.... .4 2,579 Apr. 30, 1971. 1.700 Sept. 30, 1971 ......... 1,703 Apr. 1, 1974,,...1 *4 34 Aug. 15, 1973,....4 3,894 May 6, 1971. 3.406 Oct. 31, 1971......... 1,701 May 15, 1974.....71/4 4,507 Nov. 15, 1973,,..•41/s 4,344 May 13, 1971. 3.404 Nov. 30, 1971......... 1,702 Aug. 15, 1974 . .55/8 10,284 Feb. 15, 1974 ., .41/s 3,127 May 20, 1971., 3.407 Dec. 31, 1971......... 1,702 Oct. 1, 1974.....1*4 42 May 15, • 4*4 3,580 May 27, 1971. 3,304 Jan. 31, 1972......... 1,199 Nov. 15, 1974,,.. .5% 3,981 Nov. 15, 1974,...•37/s 2,239 May 31, 1971., 1.701 Feb. 28, 1972......... 1,201 Feb. 15, 1975 ., .5y4 5,148 May 15, 1975-85..4*4 1,212 June 3, 1971., 3.300 Mar. 31, 1972......... 1,200 Apr. 1, 1975 , • 1*4 8 June 15, 1978-83..3*4 1,539 June 10, 1971., 3.301 May 15, 1975 6 6,760 Feb. 15, 1980.....4 2,592 June 17, 1971.. 3.301 Treasury notes Aug. 15, 1975.,.. ■ 5V8 7,680 Nov. 15, 1980 .,.31/2 1,904 June 22, 1971f 2,515 Apr. 1, 1971.........1% 35 Oct. 1, 1975,... • 1*4 29 May 15, 1985 . .3*4 1,064 June 24, 1971.. 3,303 May 15, 1971.........5 *4 4,265 Feb. 15, 1976.... .61/4 3,739 Aug. 15, 1987-92..41/4 3,807 June 30, 1971.. 1.702 May 15, 1971..........8 4,176 May 15, 1976.... .61/2 2,697 Feb. 15, 1988-93..4 247 July 1, 1971.. 1.402 Aug. 15, 1971.........8M 2,257 Aug. 15, 1976.... .71/2 4,194 May 15, 1989-94.•41/s 1,553 July 8, 1971.. 1.402 Oct. 1, 1971.........li/2 72 Feb. 15, 1977.,., 8 5,163 Feb. 15, 1990 ,,. .3*4 4,698 July 15, 1971.. 1.408 Nov. 15, 1971..........5% 971 Aug. 15, 1977.,...734 2,263 Feb. 15, 1995 ,.. 3 1,225 July 22, 1971.. 1.401 Nov. 15, 1971.........iy4 5,832 Feb. 15, 1978.,., .61/4 8,386 Nov. 15, 1998 .31/2 3,948 July 29, 1971.. 1.400 Feb. 15, 1972..........4% 799 July 31, 1971.. 1.703 Feb. 15, 1972.........7 Vi 2,681 Aug. 5, 1971.. 1.405 Apr. 1, 1972.........n/2 34 Convertiblebonds Aug. 12, 1971.. 1.400 May 15, 1972.........4% 5,310 Treasury bonds Investment Series B Aug. 19, 1971.. 1.402 May 15, 1972.........6% 2,037 June 15, 1967-72.•2*4 1,234 Apr. 1, 1975-80.• 23,4 2,351 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered 3 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 at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i 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 s h r e e ­ s r gations auth. 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 5,867 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 11,838 3,252 1,432 1,734 543 4,884 1970................ 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1970—Feb.... 1,214 901 302 12 346 264 604 1,209 406 59 238 14 490 Mar. .. 1,555 1,088 459 8 434 391 731 1,549 395 208 228 85 633 Apr.... 1,647 1,217 416 15 303 345 1,001 1,647 473 167 292 12 703 May... 996 674 315 7 254 311 433 987 298 30 367 11 281 June... 1,085 651 423 12 165 379 543 1,085 528 61 147 8 342 July. .. 1,348 1,055 288 4 388 229 730 1,348 268 130 142 4 803 Aug. .. 1,359 873 481 5 331 518 509 1,358 404 136 196 4 617 Sept.. . 1,758 1,207 541 9 534 536 688 1,756 491 137 243 21 864 Oct.. .. 1,924 1,184 695 32 13 290 531 1,102 1,923 532 123 380 68 821 Nov.. . 1,748 892 753 99 5 247 765 736 1,743 523 63 364 12 683 Dec__ 2,190 1,270 914 6 571 826 793 2,176 425 327 623 121 681 Jan... . 2,684 1,601 960 121 2 577 1,131 975 2,673 503 390 426 373 980 Feb.... 1,820 1,219 596 6 585 607 629 1,804 515 132 312 123 721 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 □ APRIL 1971 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 . v S c t . y . 3 a ( n U S d t . a S lo t . e ) c 4 al Other 5 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 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 1970...................... 88,664 14,831 16,180 15,160 949 38,944 30,264 25,384 4,880 1,388 7,292 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........... 5,891 387 700 1,625 9 3,170 2,469 2,022 448 67 634 May.......... 9,548 3,701 950 974 14 3,909 3,441 3,041 399 69 399 June......... 6,985 819 1,693 1,058 27 3,389 2,368 1,931 436 222 436 July.......... 5,896 405 1,107 1,310 306 2,768 2,151 1,831 320 88 529 Aug........... 8,155 3,573 915 1,318 76 2,273 1,935 1,731 205 92 246 Sept.......... 8,199 1,428 1,600 1,650 4 3,518 2,814 2,425 389 176 528 Oct............ 8,353 412 2,169 1,882 113 3,777 2,694 2,390 303 180 903 Nov.......... 9,040 2,414 750 1,684 10 4,182 3,283 3,001 283 124 774 Dec........... 7,651 401 924 2,245 100 3,980 3,270 2,436 834 168 541 1971—Jan............ 7,340 436 1,050 2,614 223 3,017 2,528 2,032 496 64 425 Gross proceeds, major groups of corporate issuers Period Manufacturing C m om is m ce e ll r a c n ia e l o u an s d Transportation Public utility Communication a R nd e a f l i n e a s n ta c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 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 1970.................................................. 9,191 1,322 1,949 2,545 2,188 92 8,016 3,001 5,059 83 3,861 1,636 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....................................... 616 73 283 276 154 939 170 56 6 421 176 May...................................... 801 17 113 338 63 535 65 1,747 182 49 June...................................... 896 42 124 396 117 2 673 430 353 i 204 151 July....................................... 602 36 232 162 215 8 624 219 143 335 191 Aug....................................... 663 20 91 96 125 531 99 278 1 248 122 Sept....................................... 937 56 118 228 145 904 337 443 2 266 81 Oct........................................ 929 76 288 286 138 653 448 338 34 348 238 Nov....................................... 927 180 147 129 170 7 845 505 693 502 78 Dec........................................ 932 124 207 147 307 58 725 230 277 5 822 146 1971—Jan......................................... 647 68 243 241 184 555 68 392 222 112 1 Gross proceeds are derived by multiplying principal amounts or 5 Foreign governments and their instrumentalities, International Bank number of units by offering price. for Reconstruction and Development, and domestic nonprofit organ- 2 Includes guaranteed issues. izations. 3 Issues not guaranteed. 4 See note to table at bottom of preceding page. Note.—Securities and Exchange Commission estimates of new issues 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

APRIL 1971 □ 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 1966......................... 19,799 7,541 12,258 15,629 4,542 11,088 4,169 3,000 1,169 1967......................... 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 1968......................... 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 1969......................... 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 1970......................... 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 1969—IV................ 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 II................. 10,114 2,227 7,886 7,876 1,545 6,330 2,238 682 1,556 Ill............... 9,385 2,089 7,297 7,598 1,546 6,051 1,788 542 1,245 IV................ 11,936 2,577 9,359 9,034 2,069 6,964 2,902 508 2,394 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 nd te s s Stocks & B o n n o d te s s Stocks & B n o o nd te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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 1,558 946 186 4,464 1,353 1,834 241 1,687 866 1970......................... 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1969—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 II................. 1,334 -6 343 633 64 -24 1,953 583 2,134 10 504 361 Ill................ 2,169 39 263 326 21 -15 1,917 750 991 6 691 139 IV................ 2,054 374 407 404 428 58 1,777 1,189 1,135 51 1,165 318 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous 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 i 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 i Re ti d o e n m s p­ s N al e e t s Total 2 po C si a t s io h n3 Other 1958............... 1,620 511 1,109 13,242 634 12,608 1970—Jan.... 523 303 220 44,945 3,959 40,986 1959............... 2,280 786 1,494 15,818 860 14,958 Feb... 407 249 158 48,202 4,209 43,993 1960............... 2,097 842 1,255 17,026 973 16,053 Mar... 451 289 162 47,915 4,046 43,869 Apr... 371 306 65 42,785 3,909 38,876 1961............... 2,951 1,160 1,791 22,789 980 21,809 May. . 304 300 4 39,824 4,042 35,782 1962............... 2,699 1,123 1,576 21,271 1,315 19,956 June.. 364 197 167 38,459 4,396 34,230 1963............... 2,460 1,504 952 25,214 1,341 23,873 July... 306 193 113 40,714 4,817 35,897 Aug... 311 167 144 42,452 4,794 37,658 1964............... 3,404 1,875 1,528 29,116 1,329 27,787 Sept... 357 218 139 44,353 4,593 39,760 1965............... 4,359 1,962 2,395 35,220 1.803 33,417 Oct.. . 420 243 177 43,567 4,377 39,190 1966............... 4,671 2,005 2,665 34,829 2,971 31,858 Nov... 343 215 128 45,223 4,126 41,097 Dec... 467 307 160 47,618 3,649 43,969 1967............... 4,670 2,745 1,927 44,701 2,566 42,135 1968............... 6,820 3,841 2,979 52,677 3,187 49,490 1971—Jan.... 487 242 245 50,251 3,663 46,588 1969............... 6,717 3,661 3,056 48,291 3,846 44,445 Feb.. . 349 322 27 51,300 3,600 47,700 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 □ APRIL 1971 SALES, PROFITS, AND DIVIDENDS OF URGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 1965 1966 1967 1968 1969 I II III IV I II III IV Manufaci Total (177 corps.): Sales.................................................. 177,237 195,738201,399225,740243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 Profits before taxes......................... 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes............................ 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends......................................... 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.):2 Sales.................................................. 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes........................ 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes........................... 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends......................................... 2,527 2,729 3,027 3,082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.):3 Sales.................................................. 112,341 122,094 123,429 140,879 151,416 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 after taxes........................... 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends......................................... 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales................................................... 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes......................... 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1,663 1,542 652 1,411 Profits after taxes........................... 3,294 2,877 1,999 2,903 2,604 783 847 330 943 806 750 342 706 Dividends......................................... 1,890 1,775 1,567 1,642 1,723 364 364 364 550 365 436 366 556 Public utility Railroad: Operating revenue.......................... 10,208 10,661 10,377 10,859 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......................................... 1,838i 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 Railroad: 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. Series have been temporarily discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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 p l io o u i n w t m a ­ l p­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i t e s s d ­ co c a n t a i l s p o lo u n it w m a ­ l p ­ ances1 ances 1 1963............... 59.4 26.3 33.1 16.5 16.6 31.8 1969—1. 93.0 43.5 49.5 24.1 25.5 48.5 1964............... 66.8 28.3 38.4 17.8 20.6 33.9 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 1970—1 ... 82.6 38.0 44.6 25.2 19.4 52.0 1968................ 88.7 40.6 48.2 23.3 24.9 46.5 II.... 82.0 38.1 43.9 25.1 18.8 53.0 1969................ 91.2 42.7 48.5 24.7 23.9 49.8 III... 84.4 38.9 45.4 25.4 20.0 54.0 1970*............. 81.6 37.6 44.0 25.2 18.8 53.5 IV*.. 77.5 35.4 42.1 25.1 16.9 55.0 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates, Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v 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 15.4 4.5 205.2 143.1 25.1 254.4 4.4 179.0 18.3 52.8 1967................................ 198.9 470.4 54.1 12.7 5.1 216.0 153.4 29.0 271.4 5.8 190.6 14.1 60.8 1968................................ 212.0 513.8 58.0 14.2 5.1 237.1 165.8 33.6 301.8 6.4 209.8 16.4 69.1 1969—1........................... 214.6 523.3 54.6 16.0 4.8 241.3 170.4 36.1 308.7 6.9 210.7 18.5 72.7 II......................... 215.6 534.5 55.4 13.5 4.8 248.6 175.2 36.9 318.9 7.2 220.1 15.0 76.5 Ill....................... 213.8 544.7 53.9 12.4 4.6 256.3 180.0 37.4 330.9 7.5 227.9 15.9 79.6 IV....................... 213.2 555.9 54.9 12.7 4.8 261.0 184.8 37.8 342.7 7.3 238.1 16.6 80.6 1970—1........................... 213.3 561.0 52.9 12.5 4.7 264.5 188.0 38.5 347.7 7.2 238.4 18.0 84.2 II......................... 213.6 566.3 52.5 10.7 4.4 268.7 190.2 39.9 352.7 7.0 244.1 14.6 87.1 Ill....................... 214.0 567.6 53.7 9.3 4.2 270.0 191.8 38.5 353.6 6.8 243.0 15.4 88.3 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 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 c m at m ion u s ­ Other1 T A (S o . . R t A a . . ) l 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 1970......................... 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 19712....................... 83.13 15.40 16.45 1.90 1.82 2.36 1.39 13.03 2.40 11.14 17.22 1969—11................. 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 Ill................ 20.26 3.87 4.12 .46 .46 .74 .30 2.79 .78 2.56 4.16 81.88 IV................. 21.66 4.26 4.40 .50 .43 .76 .33 3.12 .63 2.81 4.42 78.63 1971—12................ 17.96 3.21 3.46 .44 .38 .45 .29 2.86 .41 6.<47 80.55 II 2.............. 20.89 3.86 4.03 .50 .53 .71 .36 3.29 .61 7.01 82.54 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 □ APRIL 1971 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti es 5 M t o y r p tg e a 6 ge E p n er d i o o d f h A e o r l l s d l ­ tu F i t i n c 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 tt e e - — 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 1964.......... 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965.......... 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966.,, . 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967* 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968*........ 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 92.8 277.2 1968—IIP. 382.9 308.1 20.6 54.2 26.7 9.6 17.1 356.1 243.2 206.7 36.5 112.9 91.8 21.2 90.7 265.4 III®. 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 III®. 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 29.5 9.9 19.6 395.9 266.8 223.6 43.2 129.0 105.5 23.5 100.2 295.7 1970—I.... 429.3 340.6 28.5 60.1 29.8 9.8 20.0 399.5 268.5 223.7 44.8 131.0 107.1 23.9 101.9 297.9 II®.. 435.6 344.4 30.1 61.2 30.3 9.8 20.5 405.2 271.7 225.6 46.1 133.5 109.0 24.5 103.2 302.3 III... 442.7 349.6 31.3 61.8 30.7 98.0 20.8 412.0 275.8 228.6 47.2 136.2 111.2 25.0 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 p. A-52. 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 ] Mutual savings bank holdings 2 Residential Residential End of period Other Other Total non­ Farm Total non­ FHA- VA- Con­ farm FHA- Con­ farm Total in­ guar­ ven­ Total in­ guar­ ven­ sured anteed tional sured anteed tional 1941........ 4,906 1,048 566 4,812 3,884 900 28 1945........ 4,772 856 521 4,208 3,387 797 24 196 4 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 53 196 5 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 52 196 6 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 53 196 7 59.019 37.642 7.709 2.696 27.237 17.931 3.446 50.490 44.641 15.074 11.795 17.772 5.732 117 196 8 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—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 III. 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 III. 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.. 70,854 44,568 7,t 2,496 34,184 22,248 4,038 56,433 48,892 15,865 12,144 20,883 7,427 114 IIP 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,961 49,291 15,916 12^150 21,225 7,556 114 III. 72,091 45,345 22,637 4,109 57,432 49,708 7,628 96 1 Includes loans held by nondeposit trust companies, but not bank States and possessions. First and third quarters, estimates based on special trust depts. F.R. interpolations after 1963 or beginning 1964. For earlier years, the 2 Data for 1941 and 1945, except for totals, are special F.R. estimates. basis for first- and third-quarter estimates included F.R. commercial bank call report data and data from the National Assn. of Mutual Savings Note.—Second and fourth quarters, Federal Deposit Insurance Corpo­ 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

APRIL 1971 o 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—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 July...................................... 551 531 50 5 476 20 73,352 67,687 11,561 5,528 50,598 5,665 Aug....................................... 472 458 31 8 419 14 73,427 67,767 11,526 5,499 50,742 5,660 Sept....................................... 520 489 31 6 452 31 73,540 67,875 11,486 5,467 50,922 5,665 Oct....................................... 555 527 28 5 494 28 73,728 68,058 11,453 5,442 51,163 5,670 Nov....................................... 553 533 37 6 490 20 73,848 68,189 11,436 5,416 51,337 5,659 Dec........................................ 1,143 1,099 44 8 1,047 44 74,345 68,693 11,325 5,390 51,978 5,652 1 Includes 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-earlier 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 s e it r s s1 Period h N om ew e Home FHA- VA- Con­ Total t S e h rm or t­ i t L e o rm ng ­ 2 Total i con­ pur­ Total 2 in- guar- ven­ struc­ chase sured anteed tional tion 1945......................... 278 213 195 176 19 46 1963......................... 5,601 4,296 4,784 2,863 1,921 1,151 1945............... 1,913 181 1,358 5,376 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,$02 6,658 7,012 117,132 1970—Feb.............. 384 299 9,937 8,717 1,220 801 1969............... 21,832 4,756 11,244 140,209 7,910 7,653 124,646 Mar............. 136 388 9,745 8,501 1,243 985 Apr.............. 393 278 9,860 7,721 2,138 1,108 1970—Feb.. . 1,042 223 502 140,568 8,000 7,680 124,888 May............ 240 92 10,008 7,031 2,997 1,188 Mar... 1,262 284 585 140,766 8,092 7,677 124,997 June............ 299 71 10,236 7,002 3,234 1,331 Apr... 1,400 325 627 141,252 8,184 7,712 125,356 July............. 243 106 10,373 4,445 5,927 1,193 May.. 1,586 373 741 141,975 8,325 7,761 125,889 Aug............. 179 106 10,446 3,967 6,478 1,238 June.. 2,086 398 1,017 143,103 8,579 7,862 126,662 Sept............. 204 125 10,524 3,477 7,047 1,339 July... 2,080 393 1,071 143,103 8,579 7,862 r127,403 Oct.r.......... 134 119 10,539 3,265 7,274 1,496 Aug... 2,111 369 1,147 145,296 9,011 8,050 r128,234 Nov.r.......... 112 126 10,524 3,156 7,368 1,978 Sept... 2,183 388 1,100 146,418 9,224 8,115 129,079 224 134 10,615 3,081 7,534 2,331 Oct.... 2,127 406 1,032 147,570 9,441 8,230 129,903 Nov... 1,972 355 919 148,896 9,226 8,336 130,794 1971—Jan............... 43 331 10,326 2,924 7,403 2,750 Dec.. . 2,474 416 968 150,560 10,195 8,507 131,860 27 428 9,926 2,697 7,230 3,093 1971—Jan.... 1,667 307 752 151,503 10,474 8,673 132,377 Feb. p . 1,876 346 819 152,638 10,829 8,763 133,046 2 1 S S e e c c u ur re ed d o lo r a u n n s, s e a c m ur o e r d ti z lo e a d n s q u m ar a t t e u r r l i y n , g h i a n v i 1 n g y e m ar a o tu r r l i e ti s e s s . of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc. not shown separately. Note.—Federal Home Loan Bank Board data. 2 Beginning with 1958, includes shares pledged against mortgage loans; beginning with 1966, includes junior liens and real estate sold on contract; and beginning with 1967, includes downward structural adjustment for change in universe. Note.—Federal Home Loan Bank Board data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 52 REAL ESTATE CREDIT □ APRIL 1971 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) All residential Multifamily i Governmenttu:nderwritte:n Con­ E pe n r d io 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 in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total FH in A ­ - g V u A ar - ­ ti v o e n n a ­ l tutions tutions sured anteed i 1941................ 24.2 14.9 9.4 5.9 3.6 2.2 1954.................................. 18.6 4.3 4.1 .2 14.3 1945................ 24.3 15.7 8.6 5.7 3.5 2.2 1963.................................. 182.2 65.9 35.0 30.9 116.3 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 1967*................................ 236.1 79.9 47.4 32.5 156.1 1967?.............. 280.0 236.6 43.4 43.9 34.7 9.2 1968*................................ 251.2 83.8 50.6 33.2 167.4 1968*.............. 298.6 250.8 47.8 47.3 37.7 9.6 1967—IV......................... 236.1 79.9 47.4 32.5 156.1 1968—III___ 293.3 246.4 46.9 46.2 36.7 9.5 IV, ... 298.6 250.8 47.8 47.3 37.7 9.6 239.1 81.0 48.1 32.9 158.1 II........................... 243.2 82.1 48.7 33.4 161.1 1969—1........... 303.0 254.4 48.6 48.3 38.4 9.9 Ill......................... 247.0 83.2 49.6 33.6 163.8 II......... 308.9 259.3 49.6 49.4 39.3 10.1 251.2 84.4 50.6 33.8 166.8 Ill... . 314.1 262.7 51.4 50.6 40.2 10.4 IV........ 319.0 265.0 54.0 52.2 41.3 10.9 1969—1............................ 254.8 85.3 51.4 33.9 169.5 II........................... 259.5 87.1 52.2 34.9 172.3 1970—1........... 312.7 265.8 55.9 53.2 42.1 11.1 Ill......................... 263.5 88.8 53.4 35.4 174.6 II*.... 326.2 268.7 57.5 54.5 43.1 11.4 IV......................... 266.8 90.1 54.5 35.6 176.9 Ill*. . . 332.9 272.8 60.1 55.9 44.1 11.8 1970—1............................ 268.5 91.6 55.6 36.0 177.1 II*......................... 271.7 92.1 56.1 36.0 179.9 i Structures of five or more units. Ill*....................... 275.8 Note.—Based on data from same source as for “Mortgage Debt Out­ standing” table (second preceding page). 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. Note.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In millions of dollars) DELINQUENCY RATES ON HOME MORTGAGES FHA-insured VA-guaranteed (Per 100 mortgages held or serviced) Mortgages Mortgages Loans not in foreclosure Period Prop­ but delinquent for— Loans in Pro­ erty fore­ Total h N om ew 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 Total 30 days 60 days o 9 r 0 m da o y r s e closure 1945............. 665 257 217 20 171 192 1963................ 3.30 2.32 .60 .38 .34 1964............. 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1964................ 3.21 2.35 .55 .31 .38 1965............. 8,689 1,705 5,760 591 634 2,652 876 1,774 1965................ 3.29 2.40 .55 .34 .40 1966............. 7,320 1,729 4,366 583 641 2,600 980 1,618 1966................ 3.40 2.54 .54 .32 .36 1967............. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1967................ 3.47 2.66 .54 .27 .32 1968....... 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1968................ 3.17 2.43 .51 .23 .26 1969............. 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1969................ 3.22 2.43 .52 .27 .27 1969—Sept.. 872 148 566 95 63 364 134 230 1966—III. 3.09 2.25 .52 .32 .36 Oct... 911 160 553 140 59 397 148 249 IV.... 3.40 2.54 .54 .32 .36 Nov.. 705 131 430 90 55 328 125 203 Dec.. 793 148 448 146 50 317 134 183 1967—1........... 3.04 2.17 .56 .31 .38 II......... 2.85 2.14 .45 .26 .34 1970—Jan... 807 178 433 139 58 313 139 174 III. 3.15 2.36 .52 .27 .31 Feb.. 643 141 361 109 32 235 107 128 IV___ 3.47 2.66 .54 .27 .32 Mar.. 780 176 406 157 42 257 114 143 Apr.. 864 176 385 257 45 232 97 135 1968—1........... 2.84 2.11 .49 .24 .32 May. 943 176 351 367 48 237 98 139 II........ 2.89 2.23 .44 .22 .28 June. 1,097 218 478 336 64 262 99 163 Ill.... 2.93 2.23 .48 .22 .26 July.. 1,087 230 475 319 62 297 108 189 IV___ 3.17 2.43 .51 .23 .26 Aug.. 1,030 247 504 228 49 316 111 204 Sept.. 1,099 268 521 247 63 336 113 223 1969—1........... 2.77 2.04 .49 .24 .26 II......... 2.68 2.06 .41 .21 .25 Ill.... 2.91 2.18 .47 .26 .25 1 Monthly figures do not reflect mortgage amendments included in annual IV___ 3.22 2.43 .52 .27 .27 totals. 2 Not ordinarily secured by mortgages. 1970—1.......... 2.96 2.14 .52 .30 .31 3 Includes a small amount of alteration and repair loans, not shown separ­ II........ 2.83 2.10 .45 .28 .31 ately; only such loans in amounts of more than $1,000 need be secured. Ill___ 3.10 2.26 .53 .31 .25 Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, Note.—Mortgage Bankers Association of America data from gross amounts of loans closed. Figures do not take into account principal reports on 1- to 4-family FHA-insured, VA-guaranteed, and con­ repayments on previously insured or guaranteed loans. For VA-guaranteed ventional mortgages held by more than 400 respondents, including loans, amounts by type are derived from data on number and average mortgage bankers (chiefly), commercial banks, savings banks, and amount of loans closed. savings and loan associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ REAL ESTATE CREDIT A 53 GOVERNMENT NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY ASSOCIATION ACTIVITY (In millions of dollars) (In millions of dollars) Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage holdings transactions commitments holdings transactions commitments (during (during End of period) End of period) period period Total F su H in re A - d - a g n V u t A e a e r - d ­ c P ha u s r e ­ s Sales p d M e u r 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 ­ 196 6 2,667 2,062 604 620 371 491 196 6 4,396 3,345 1,051 2,081 1,920 214 196 7 3,348 2,756 592 860 1,045 1,171 196 7 5,522 4,048 1,474 1,400 12 1,736 501 196 8 4,220 3,569 651 1,089 867 1,266 196 8 7,167 5,121 2.046 1,944 2,697 1,287 196 9 4.820 4.220 600 827 615 1.130 196 9 10,950 7,680 3,270 4,121 6,630 3,539 1969-Dec.. 4.820 4.220 600 99 54 1.130 1970-Jan... 11,513 8,062 3,452 592 836 3,694 Feb.. 12,005 8,392 3,613 522 816 3,933 1970-Jan.. 4,862 4,266 596 59 34 1,098 Mar.. 12,499 8,739 3,760 526 696 4,108 Feb. 4,903 4,311 592 58 24 1,057 Apr.. 12,949 9,069 3,880 485 592 4,152 Mar. 4,938 4,350 588 53 95 1,014 May. 13,287 9,324 3,962 374 817 4,510 Apr., 4,965 4,381 584 44 48 970 June. 13,658 9,610 4.047 434 712 4,709 May, 5,006 4,426 580 62 92 925 July.. 14,084 9,936 4,148 470 532 4,684 June, 5,033 4,458 575 58 191 992 Aug.. 14,452 10,218 4,234 413 718 4,834 July., 5,070 4,499 571 55 172 966 Sept.. 14,807 10,499 4,308 406 650 4,849 Aug.. 5,102 4,535 567 54 123 802 Oct... 15,152 10,780 4,372 397 535 4,805 Sept. 5,109 4,546 563 27 57 795 Nov.. 15,396 10,981 4,416 294 541 4,930 Oct.., 5,132 4,573 559 46 42 775 Dec.. 15,502 11,071 4,431 165 600 5,203 Nov., 5,141 4,587 • 554 35 42 776 Dec.. 5,184 4,634 550 70 37 738 1971-Jan... 15,520 11,092 4,428 75 139 5,092 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. FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM HOME-MORTGAGE YIELDS Implicit yield, by Mortgage amounts commitment period (In per cent) (in months) Primary market Secondary Date Accepted (conventional loans) market of auction By commitment FHA series Offered period (in months) 3 6 12-18 FHLBB series Yield Total Period (effective rate) on FHAinsured 3 6 12-18 New h n o e m w e New Existing homes loans In millions of dollars In per cent homes homes 1970—June 15.. 249.7 127.9 34.2 86.7 7.0 9.27 9.30 9.31 1966......................... 6.25 6.41 6.40 6.38 29.. 156.3 98.9 30.6 56.5 11.8 9.32 9.33 9.34 1967......................... 6.46 6.52 6.53 6.55 1968......................... 6.97 7.03 7.12 7.21 July 13.. 286.2 113.3 24.9 72.9 15.3 9.20 9.21 9.22 1969......................... 7.81 7.82 7.99 8.26 27.. 323.8 150.4 37.0 91.0 22.3 9.10 9.12 9.12 1970—Mar............. 8.47 8.43 8.55 9.20 Aug. 3.. 441.3 180.1 41.4 91.0 47.8 9.03 9.03 9.04 Apr.............. 8.41 8.34 8.55 9.10 24.. 492.8 215.1 48.9 124.4 41.9 9.03 9.03 9.03 May............ 8.45 8.34 8.55 9.11 8.48 8.36 8.55 9.16 Sept. 8.. 384.2 200.1 45.6 117.0 37.5 9.06 9.04 9.04 July............. 8.49 8.37 8.60 9.11 24.. 207.8 195.3 40.1 121.5 33.7 9.01 9.01 9.02 Aug............. 8.52 8.41 8.60 9.07 Sept............. 8.48 8.42 8.50 9.01 Oct. 5.. 267.5 149.8 62.2 73.1 14.5 8.90 8.92 8.97 Oct.............. 8.51 8.35 8.50 8.97 19.. 352.5 149.7 53.2 88.1 8.4 8.89 8.90 8.95 Nov............. 8.43 8.32 8.45 8.90 Dec. r.......... 8.38 8.26 8.30 8.40 Nov. 2.. 341.5 181.2 100.0 62.4 18.7 8.90 8.93 8.93 16.. 222.4 170.3 75.8 79.4 15.1 8.89 8.90 8.92 1971—Jan............... 8.18 8.08 7.95 Feb.............. 7.92 7.80 7.75 Dec. 7.. 166.5 127.8 54.7 60.9 12.2 8.56 8.54 8.57 Mar.............. 7.60 7.32 14.. 165.1 124.7 42.1 72.1 10.5 8.51 8.43 8.47 1971—Jan. 25.. 44.1 35.5 9.9 25.6 7.82 7.96 8.40 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices Feb. 8.. 23.4 23.3 10.6 12.7 7.67 7.67 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from Mar. 1.. 185.6 51.8 15.2 29.3 7.3 7.43 7.43 7.56 weighted averages of private secondary market prices for Sec. 15.. 193.5 74.0 17.9 41.2 14.9 7.32 7.44 7.54 203, 30-year mortgages with minimum downpayment and an 29.. 122.5 67.0 36.7 26.3 3.9 7.32 7.45 7.55 assumed prepayment at the end of 15 years. Gaps in data are due to periods of adjustment to changes in maximum permis­ sible contract interest rates. The FHA series on average contract Note.—Implicit secondary market yields are gross—before deduction of 50interest rates on conventional first mortgages in primary markets basis-point fee paid for mortgage servicing. They reflect the average accepted bid are unweighted and are rounded to the nearest 5 basis points. price for Govt.-underwritten mortgages after adjustment by Federal Reserve The FHLBB effective rate series reflects fees and charges as well to allow for FNMA commitment fees and FNMA stock purchase and holding as contract rates (as shown in the table on conventional first- requirements, assuming a prepayment period of 15 years for 30-year loans. Com­ mortgage terms, p. A-35) and an assumed prepayment at end mitments for 12-18 months are for new homes only. of 10 years Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 54 CONSUMER CREDIT □ APRIL 1971 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1939. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 . 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 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 1970. 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1970—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 Aug................................. 123,655 99,860 36,908 27,801 4,104 31,047 23,795 9,294 7,508 6,993 Sept................................. 123,907 100,142 36,738 28,055 4,123 31,226 23,765 9,316 7,489 6,960 Oct.................................. 123,866 99,959 36,518 28,152 4,126 31,163 23,907 9,313 7,656 6,938 Nov................................. 123,915 99,790 36,011 28,378 4,133 31,268 24,125 9,345 7,757 7,023 Dec................................. 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1971--Jan................................... 125,077 100,101 35,004 29,575 4,067 31,455 24,976 9,480 8,094 7,402 Feb.................................. 123,815 99,244 34,869 28,928 4,051 31,396 24,571 9,506 7.353 7,712 i Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and, Monetary Statistics, 1965, Note.—Consumer credit estimates cover loans to individuals for house- and pp. 983-1003 of the Bulletin for Dec. 1968. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Mis­ Auto­ Other Total mercial Finance Credit cellaneous Total mobile retail banks cos. 1 unions lenders 1 dealers 2 outlets 1939. 4,503 3,065 1,079 1,836 132 18 1,438 123 1,315 1941. 6,085 4,480 1,726 2,541 198 15 1,605 188 1,417 1945. 2,462 1,776 745 910 102 19 686 28 658 1950, 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965. 71,324 61,533 28,962 24,282 7,324 965 9,791 315 9,476 1966, 77,539 66,724 31,319 26,091 8,255 1,059 10,815 277 10,538 1967. 80,926 69,490 32,700 26,734 8,972 1,084 11,436 285 11,151 1968. 89,890 77,457 36,952 29,098 10,178 1,229 12,433 320 12,113 1969. 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 12,851 1970. 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1970—Feb........................................................ 96,892 84,393 39,990 31,538 11,459 1,406 12,499 331 12,168 Mar....................................................... 96,662 84,308 39,956 31,433 11,533 1,386 12,354 331 12,023 97,104 84,802 40,245 31,537 11,644 1,376 12,302 332 11,970 May...................................................... 97,706 85,335 40,515 31,595 11,778 1,447 12,371 333 12,038 June...................................................... 98,699 86,311 40,979 31,862 12,030 1,440 12,388 336 12,052 July....................................................... 99,302 86,876 41,703 31,561 12,141 1,471 12,426 337 12,089 Aug....................................................... 99,860 87,315 41,934 31,588 12,292 1,501 12,545 337 12,208 Sept....................................................... 100,142 87,471 42,051 31,510 12,409 1,501 12,671 337 12,334 99,959 87,243 42,010 31,309 12,422 1,502 12*716 335 12,381 Nov....................................................... 99,790 86,820 41,740 31,081 12,438 1,561 12,970 332 12,638 Dec........................................................ 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1971- 100,101 86,308 41,611 30,791 12,353 1,553 13,793 324 13,469 Feb........................................................ 99,244 85,910 41,446 30,511 12,351 1,602 13,334 323 13,011 1 Finance companies consist of those institutions formerly classified 2 Automobile paper only; other instalment credit held by automobile as sales finance, consumer finance, and other finance companies. Mis- dealers is included with “other retail outlets,” cellaneous lenders include savings and loan associations and mutual See also Note to table above, savings banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ CONSUMER CREDIT A 55 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair E p n er d i o o d f Total ch P a u s r e ­ d pape D r irect s g p O c u o a o t m o p h n d e e e ­ r s r r m iz l o o a a d n a ti e n d o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s g O p c u o a o t m o p h n d e e e ­ s r r r m i R z lo a o e a n a d p ti n d e a o s r i n r n­ s l P o o a e n n r a ­ s l 1939................. 1,079 237 178 166 135 363 1939. 1,836 932 134 151 619 1941.................. 1,726 447 338 309 161 471 1941, 2,541 1,438 194 204 705 1945.................. 745 66 143 114 110 312 1945, 910 202 40 62 606 1950.................. 5,798 1,177 1,294 1,456 834 1,037 1950, 5,315 3,157 692 80 1,386 1955.................. 10,601 3,243 2,062 2,042 1,338 1,916 1955. 11,838 7,108 1,448 42 3,240 1960.................. 16,672 5,316 2,820 2,759 2,200 3,577 1960. 15,435 7,703 2,553 173 5,006 1965.................. 28,962 10,209 5,659 4,166 2,571 6,357 1965, 24,282 9,400 4,425 224 10,233 1966.................. 31,319 11,024 5,956 4,681 2,647 7,011 1966. 26,091 9,889 5,171 191 10,840 1967.................. 32,700 10,927 6,267 5,126 2,629 7,751 1967. 26,734 9,538 5,479 154 11,563 1968.................. 36,952 12,213 7,105 6,060 2,719 8,855 1968. 29,098 10,279 5,999 113 12,707 1969.................. 40,305 12,784 7,620 7,415 2,751 9,735 1969. 31,734 11,053 6,514 106 14,061 1970.................. 41,895 12,433 7,587 8,633 2,760 10,482 1970. 31,123 9,941 6,648 94 14,440 1970—Feb.... 39,990 12,585 7,533 7,474 2,691 9,707 1970—Feb......................... 31,538 10,908 6,523 103 14,004 Mar... 39,956 12,552 7,538 7,476 2,678 9,712 31,433 10,876 6,489 102 13,966 Apr___ 40,245 12,550 7,598 7,568 2,685 9,844 31,537 10,949 6,478 101 14,009 May... 40,515 12,600 7,635 7,667 2,705 9,908 31,595 10,990 6,505 99 14,001 June... 40,979 12,680 7,722 7,828 2,731 10,018 31,862 11,073 6,560 98 14,131 July... 41,703 13,002 7,759 8,078 2,755 10,109 July........................ 31,561 10,771 6,499 96 14,195 Aug.. . 41,934 12,981 7,748 8,183 2,770 10,252 31,588 10,732 6,529 94 14,233 Sept.. . 42,051 12,890 7,734 8,263 2,783 10,381 31,510 10,619 6,568 94 14,229 Oct.. .. 42,010 12,824 7,730 8,286 2,785 10,385 31,309 10,465 6,594 94 14,156 Nov__ 41,740 12,628 7,654 8,299 2,779 10,380 31,081 10,226 6,548 94 14,213 Dec___ 41,895 12,433 7,587 8,633 2,760 10,482 31,123 9,941 6,648 94 14,440 1971—Jan.... 41,611 12,253 7,530 8,613 2,727 10,488 1971- 30,791 9,754 6,605 93 14,339 Feb.... 41,446 12,165 7,561 8,535 2,704 10,481 Feb.......................... 30,511 9,672 6,493 93 14,253 See Note to first table on preceding page. Note.—Finance companies consist of those institutions formerly clas­ sified as sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (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 cardsi 1939.................................... 150 27 5 12 106 banks insti­ 1941.................................... 213 47 9 11 146 tutions 1945.................................... 121 16 4 10 91 1950.................................... 692 159 40 102 391 1939.................. 2,719 625 162 1,414 518 1955.................................... 1,959 560 130 313 956 1941.................. 3,087 693 152 1,645 597 1960.................................... 4,566 1,460 297 775 2,034 1945.................. 3,203 674 72 1,612 845 1965.................................... 8,289 3,03,6 498 933 3,822 1950................. 6,768 1,576 245 3,291 76 1,580 1966.................................... 9,314 3,41*0 588 980 4,336 1955................. 9,924 2,635 367 4,579 216 2,127 1967.................................... 10,056 3,707 639 1,006 4,704 1960.................. 13,173 3,884 623 4,893 436 3.337 1968.................................... 11,407 4,213 727 1,093 5,374 1969.................................... 12,943 4,809 829 1,183 6,122 196 5 18,990 6,690 981 5,724 706 4,889 1970.................................... 14,046 5,202 898 1,256 6,690 196 6 20,004 6,946 1,026 5,812 874 5,346 196 7 21,206 7,340 1,088 5,939 1,029 5,810 1970—Feb......................... 12,865 4,762 822 1,176 6,105 196 8 23,301 7,975 1,163 6,450 1,305 6,408 Mar........................ 12,919 4,791 826 1,171 6,131 196 9 24,300 7,900 1,196 6,650 1,584 6,970 Apr......................... 13,020 4,835 834 1,174 6,177 197 0 25,641 8.205 1.279 6.932 1.918 7.307 May....................... 13,225 4,897 845 1,199 6,284 June....................... 13,470 4,998 863 1,211 6,398 1970—Feb.... 23,185 7,857 1,217 5,210 1,579 7,322 July........................ 13,612 5,049 872 1,230 6,461 Mar.. . 23,036 7,843 1,211 5,062 1,583 7.337 Aug........................ 13,793 5,110 881 1,240 6,562 Apr___ 23,298 7,892 1,210 5,289 1,611 7,296 Sept........................ 13,910 5,158 890 1,246 6,616 May... 23.640 7,925 1.234 5,633 1,640 7,208 Oct.......................... 13,924 5,164 891 1,247 6,622 June... 23,843 8.005 1.234 5,765 1,708 7,131 Nov........................ 13,999 5,171 893 1,260 6,675 July... 23,790 8.005 1,249 5,727 1,782 7,027 Dec......................... 14,046 5,202 898 1,256 6,690 Aug.... 23,795 8,041 1.253 5,664 1,844 6,993 Sept.... 23,765 8,062 1.254 5,617 1.872 6,960 1971—Jan.......................... 13,906 5,143 888 1,247 6,628 Oct.... 23,907 8,059 1.254 5,797 1,859 6,938 Feb.......................... 13,953 5,148 889 1,254 6,662 Nov.... 24,125 8,071 1,274 5,884 1.873 7,023 Dec— 25.641 8.205 1.279 6.932 1.918 7.307 lan N eo o u t s e . l — en O de th rs e . r financial lenders consist of credit unions and miscel­ 1971—J F a e n b .. . .. .. . 2 24 4 , , 5 9 7 7 1 6 8 8 , . 1 20 9 5 6 1 1 , , 3 2 0 8 1 4 5 6 , , 4 1 3 4 5 4 1 1 . , 9 9 1 5 8 0 7 7 , , 7 4 1 0 2 2 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 □ APRIL 1971 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Total Automobile paper Ot g h o e o r d c s o p n a s p u e m r er mode R r e n p iz a a ir ti o a n n d l oans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S. A.1 N.S.A. S. A.1 N.S.A. S. A.1 N.S.A. Extensions 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 1970............................................... 104,130 29,831 36,781 2,’145 35,373 1970—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 Aug................................... 8,809 8,915 2,537 2,540 3,168 3,152 173 197 2,931 3,026 Sept................................... 8,849 8,580 2,621 2,402 3,071 3,097 186 194 2,971 2,887 Oct.................................... 8,580 8,670 2,349 2,463 3,113 3,200 182 184 2,936 2,823 Nov................................... 8,414 8,271 2,127 2,006 3,113 3,147 180 176 2,994 2,942 Dec................................... 8,536 10,194 2,170 2,045 3,281 4,562 177 149 2,908 3,438 1971—Jan..................................... 8,916 7,545 2,461 1,997 3,252 2,868 177 122 3,026 2,558 Feb.................................... 9,081 7,489 2,687 2,336 3,204 2,431 197 155 2,993 2,567 Repayments 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 1970............................................... 101,138 30,943 34,441 2,075 33,679 1970—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 Aug................................... 8,577 8,357 2,632 2,550 2,967 2,889 175 174 2,803 2,744 Sept................................... 8,490 8,298 2,599 2,572 2,913 2,843 174 175 2,804 2,708 Oct.................................... 8,662 8,853 2,550 2,683 3,036 3,103 179 181 2,897 2,886 Nov................................... 8,716 8,440 2,577 2,513 3,082 2,921 176 169 2,881 2,837 Dec.................................... 8,515 8,823 2,618 2,566 2,945 2,991 175 172 2,777 3,094 1971—Jan..................................... 8,829 8,605 2,623 2,483 3,145 3,242 175 165 2,886 2,715 Feb.................................... 8,979 8,346 2,636 2,471 3,212 3,078 188 171 2,943 2,626 Net change in credit outstanding 2 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 1970............................................... 2,992 -1,112 2,340 70 1,694 1970—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 Aug................................... 232 558 -95 -10 201 263 -2 23 128 282 Sept................................... 359 282 22 -170 158 254 12 19 167 179 Oct.................................... -82 -183 -201 -220 77 97 3 3 39 -63 Nov................................... -302 -169 -450 -507 31 226 4 7 113 105 Dec.................................... 21 1,371 -448 -521 336 1,571 2 -23 131 344 1971—Jan..................................... 87 -1,060 -162 -486 107 -374 2 -43 140 -157 Feb.................................... 102 -857 51 -135 -8 -647 9 -16 50 -59 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

APRIL 1971 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Period Total Commercial banks Finance companies lenders Retail outlets S.A.i N.S.A. S.A.i N.S.A. S. A.1 N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1965. 78,586 29,528 25,192 9,436 14,430 1966. 82,335 30,073 25,406 10,362 16,494 1967. 84,693 30,850 25,496 10,911 17,436 1968. 97,053 36,332 28,836 12,850 19,035 1969. 102,888 38,533 30,854 14,245 19,256 1970. 104,130 39,136 29,662 14,619 20,713 1970—Feb.. 8,625 7,106 3,167 2,735 2,510 2,125 1.198 1,038 1,750 1,208 Mar.. 8,392 8,243 3,193 3,206 2,439 2,391 1,122 1,144 1,638 1,502 Apr.. 8,491 8,773 3,208 3,450 2,502 2,581 1.198 1,229 1,583 1,513 May. 9,004 8,857 3,291 3,341 2,639 2,503 1,252 1,309 1,822 1,704 June. 8,683 9,534 3,262 3,643 2,616 2,912 1,233 1,407 1,572 1,572 July.. 9,065 9,497 3,382 3,697 2,590 2,731 1,365 1,418 1,728 1,651 Aug.. 8,809 8,915 3,308 3,385 2,427 2,416 1,235 1,318 1,839 1,796 Sept.. 8,849 8,580 3,417 3,352 2,441 2,300 1,265 1,212 1,726 1,716 Oct.. 8,580 8,670 3,276 3,301 2,371 2,387 1,221 1,187 1,712 1,795 Nov.. 8,414 8,271 3,159 2.885 2,300 2,342 1,184 1,150 1,771 1,894 Dec.. 8,536 10,194 3,326 3,390 2,240 2,795 1,187 1,206 1,783 2,803 1971—Jan.. 8,916 7,545 3,338 2.885 2,411 1,961 1,288 1,055 1,879 1,644 Feb., 9,081 7,489 3,478 2,988 2,513 2,121 1,282 1,117 1,808 1,263 Repayments 1965. 69,957 25,663 22,551 8,310 13,433 1966. 76,120 27,716 23,597 9,337 15,470 1967. 81,306 29,469 24,853 10,169 16,815 1968. 88,089 32,080 26,472 11,499 18,038 1969. 94,609 35,180 28,218 12,709 18,502 1970. 101,138 37,961 29,858 13,516 19,803 1970—Feb.. 8,207 7,616 3,101 2,889 2,368 2,158 1,099 989 1,639 1,580 Mar.. 8.194 8,473 3,119 3,240 2,389 2,496 1,065 1,090 1,621 1,647 Apr.. 8.195 8,331 3,081 3,161 2,415 2,477 1,117 1,128 1,582 1,565 May. 8,589 8,255 3,170 3,071 2,574 2,445 1,173 1,104 1,672 1,635 June. 8,242 8,541 3,041 3,179 2,548 2,645 1,087 1,162 1,566 1,555 July.. 8,622 8,894 3,264 3,388 2,580 2,617 1,184 1,276 1,594 1,613 Aug.. 8,577 8,357 3,185 3.154 2,507 2,389 1,158 1,137 1,727 1,677 Sept.. 8,490 8,298 3,249 3.235 2,482 2,378 1,127 1,095 1,632 1,590 Oct.. 8,662 8,853 3,258 3,342 2.551 2,588 1,165 1,173 1,688 1,750 Nov.. 8,716 8,440 3,276 3.155 2.552 2,570 1,135 1,075 1,753 1,640 Dec.. 8,515 8,823 3,262 3.235 2,465 2,753 1,113 1,159 1,675 1,676 1971—Jan.. 8,829 8,605 3,385 3,169 2,486 2,293 1,199 1,195 1,759 1,948 Feb. 8,979 8,346 3,369 3,153 2,656 2,401 1,186 1,070 1,768 1,722 Net change in credit outstanding 2 1965............................................... 8,629 3,865 2,641 1,126 997 1966............................................... 6,215 2,357 1,809 1,025 1,024 1967............................................... 3,387 1,381 643 742 621 1968............................................... 8,964 4,252 2,364 1,351 997 1969............................................... 8,279 3,353 2,636 1,536 754 1970............................................... 2,992 1,590 -611 1,103 910 1970—Feb.................................... 418 -510 66 -154 142 -33 99 49 111 -372 Mar................................... 198 -230 74 -34 50 -105 57 54 17 -145 Apr.................................... 296 442 127 289 87 104 81 101 1 -52 May.................................. 415 602 121 270 65 58 79 205 150 69 June.................................. 441 993 221 464 68 267 146 245 6 17 July................................... 443 603 533 724 -405 -301 181 142 134 38 Aug................................... 232 558 123 231 -80 27 77 181 112 119 Sept................................... 359 282 168 117 -41 -78 138 117 94 126 Oct.................................... -82 -183 18 -41 -180 -201 56 14 24 45 Nov................................... -302 -169 -117 -270 -252 -228 49 75 18 254 Dec.................................... 21 1,371 64 155 -225 42 74 47 108 1,127 1971—Jan..................................... 87 -1,060 -47 -284 -75 -332 89 -140 120 -304 Feb.................................... 102 -857 109 -165 -143 -280 96 47 40 -459 1 Includes adjustments for differences in trading days. changes in their outstanding credit. Such transfers do not affect total 2 Net changes in credit outstanding are equal to extensions less re­ instalment credit extended, repaid, or outstanding. payments, except in certain months when data for extensions and re­ payments have been adjusted to eliminate duplication resulting from Note.—“Other financial lenders” include credit unions and miscellaneous large transfers of paper. In those months the differences between ex­ lenders. See also Note to preceding table and Note 1 at bottom of p. A-54. tensions and repayments for some particular holders do not equal the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 58 INDUSTRIAL PRODUCTION: S.A. □ APRIL 1971 MARKET GROUPINGS (1957-59=100) 1957-59 1969 1970 1971 Grouping p p r o o r ­ ­ a ag v e e * r > tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan.r Feb. Total index......................................... 100.00 172.8 170.5 171.1 170.2 169.0 168.1 169.2 168.! 165.1 162.3 161.5 164.4 165.6 164.9 Final products, total............................. 47.35 170.8 169.9 169.7 168.5 167.7 167.1 166.8 166.5 163.1 159.8 159.4 162.9 163.9 162.3 Consumer goods............................... 32.31 162.5 162.4 162.0 163.2 163.2 162.8 163.5 163.5 160.1 157.0 157.0 162.4 165.2 164.0 Equipment, including defense.. . 15.04 188.6 186.2 186.3 179.9 177.3 176.3 173.7 173.0 169.6 165.9 164.5 164.2 161.3 158.5 Materials................................................. 52.65 174.6 171.5 171.7 171.9 170.4 171.2 171.4 171.2 168.9 164.8 163.8 166.0 167.2 167.7 Consumer goods Automotive products............................. 3.21 173.2 154. 160.0 158.4 166.4 170.3 172. 167.5 133.1 110.1 112.2 145.9 166.4 174.9 Autos........................................................ 1.82 162. 127.6 138.4 136.1 156.0 163.0 163.8 163.3 108.5 76.5 78.1 131.9 155.1 168.1 Auto parts and allied products.... 1.39 186.8 190.7 188.5 187.8 180.1 179.9 184.7 173.1 165.6 154.5 157.0 164.3 181.4 183.9 Home goods and apparel..................... 10.00 159.3 153.6 154.5 155.0 153.0 153.2 155.4 156.4 153.4 153.9 150.3 150.9 152.3 150.9 Home goods........................................... 4.59 184.0 174.8 179.4 180.0 178.4 177.7 182.5 183.7 179.0 180.2 180.0 174.0 177.5 175.6 Appliances, TV, and radios......... 1.81 180.2 168.6 178.1 178.9 182.6 178. 192.3 198.6 189.9 194.3 188.1 169.1 174.3 172.6 Appliances...................................... 1.33 192.4 186.5 199.1 206.7 213.9 201.4 218.4 223.7 212.8 216.0 208.3 182.2 194.2 192.0 TV and home radios.................. .47 145.6 118.2 119.1 100.3 94.2 115.2 118.8 127.8 125.5 133.2 131.1 132.2 118.3 118.0 Furniture and rugs........................... 1.26 180.3 169.2 170.3 170.6 165.5 164.9 165.2 164.9 164.4 166.5 169.3 170.5 173.9 171.9 Miscellaneous home goods........... 1.52 191.5 186.7 188.4 189.0 184.1 186.9 185.0 181.6 178.0 174.8 179.3 182.8 184.2 182.1 Apparel, knit goods, and shoes___ 5.41 138.5 135.7 133.4 133.8 131.4 132.4 132.4 133.2 131.7 131.6 125.2 131.3 131.0 Consumer staples.................................. 19.10 162.4 168.2 166.2 168.4 168.0 166.6 166.3 166.6 168.1 166.7 168.0 171.1 171.7 169.1 Processed foods.................................... 8.43 136.6 139.5 139.6 140.2 141.1 137.9 138.7 139.4 139.3 135.2 138.3 141.0 141.5 137.9 Beverages and tobacco....................... 2.43 146.8 154.6 146.1 150.1 142.2 142.6 141.9 144.7 149.0 148.1 147.5 152.1 150.6 Drugs, soap, and toiletries................ 2.97 209.0 217.9 216.5 218.6 219.6 217.4 217.4 213.9 215.5 215.0 220.1 226.8 227.2 220.9 Newspapers, magazines, and books 1.47 147.1 147.6 146.1 146.0 146.9 147.6 142.9 143.1 140.5 140.8 143.2 144.7 145.5 145.1 Consumer fuel and lighting.............. 3.67 199.6 210.3 207.2 212.6 212.3 213.7 212.8 213.5 219.2 221.7 217.2 218.0 219.3 Fuel oil and gasoline....................... 1.20 144.6 146.5 150.3 152.1 149.7 153.0 148.2 148.9 152.7 155.2 154.8 155.6 156.9 153.0 Residential utilities.......................... 2.46 226.3 241.5 235.0 242.1 242.8 243.3 244.3 245.0 251.7 254.2 247.6 248.5 249.7 Electricity....................................... 1.72 249.7 267.5 257.7 267.5 268.1 268.1 269.1 269.7 281.9 285.0 275.1 2/6.0 277.1 Gas................................................... .74 Equipment Business equipment................................ 11.63 195.6 196.9 198.0 193.0 188.7 188.0 186.1 185.9 182.3 178.9 177. 177.9 174.3 172.0 Industrial equipment........................... 6.85 179.1 184.9 186 182.1 175.8 175.2 174.6 173.3 170.5 169.7 167.9 166.8 164.4 161.3 Commercial equipment....................... 2.42 220.0 222.4 225.0 223.4 220.4 220.4 218.3 214.2 210.5 207.0 205.7 204.3 200.7 199.4 Freight and passenger equipment.. 1.76 246.7 231.8 226.1 215.4 216.8 213 207.3 214.3 206.5 193.7 194.6 202.3 203.6 195.5 Farm equipment................................... .61 136.8 130.3 134.6 130.4 127.4 128.6 126.0 133.2 133.6 128.0 130.8 127.0 96.7 Defense equipment................................ 3.41 Materials Durable goods materials...................... 26.73 165.5 157.9 159.1 159.6 157.5 157.8 158.4 157.4 151.9 144.3 141.9 147.0 148.3 149.7 Consumer durable............................... 3.43 163.9 142.3 143.0 143.6 146.0 155.4 156.0 161.3 143.6 110.9 111.2 139.0 150.0 152.4 Equipment.............................................. 7.84 191.9 188.6 189.8 183.8 177.5 176.6 178.4 175.9 173.1 166.7 164.1 163.6 163.4 161.8 Construction........................................... 9.17 152.4 150.7 148.8 148.8 146.8 145.1 146.3 147.3 146.1 144.2 140.6 142.0 144.0 146.3 Metal materials n.e.c........................... 6.29 152.8 150.2 152.4 147.7 146.8 150.0 152.6 147.2 140.1 136.2 133.7 143.3 147.7 148.5 Nondurable materials........................... 25.92 183.9 185.5 184.7 184.6 183.8 184.9 184.9 185.4 186.4 186.0 186.3 185.7 186.8 186.2 Business supplies.................................. 9.11 166.6 166.2 164.8 164.5 162.1 163.4 164.9 165.0 161.2 159.5 160.7 162.2 161.7 160.5 Containers.......................................... 3.03 168.6 169.3 165.0 166.2 168.2 166.0 161.9 167.5 163.1 164.1 164.2 166.5 167.0 166.8 General business supplies.............. 6.07 165.5 164.7 164.7 163.7 159.1 162.1 166.4 163.7 160.3 157.2 158.9 160.0 159.0 157.4 Nondurable materials n.e.c............... 7.40 237.8 239.0 237.2 236.1 233.1 234.7 234.2 233.4 235.8 236.0 238.5 235.3 238.9 238.8 Business fuel and power.................... 9.41 158.2 162.0 162.7 163.8 166.0 166.6 165.4 167.5 171.8 172.5 170.1 169.3 170.1 169.5 Mineral fuels...................................... 6.07 134.9 137.1 137.4 139.1 142.0 142.4 140.2 144.4 147.5 148.0 146.6 145.0 145.5 143.6 Nonresidential utilities................... 2.86 216.7 225.0 226.3 226.5 228.1 228.6 229.4 227.9 235.1 236.7 231.1 232.6 234.3 Electricity....................................... 2.32 220.6 230.2 231.8 232.0 233.8 234.3 235.0 233.0 238.7 240.8 233.9 235.8 237.9 General industrial................... 1.03 216.1 218.1 219.4 220.6 221.8 223.9 227.2 225.4 225.8 223.1 216.3 219.5 219 Commercial and other........... 1.21 236.1 253.1 254.8 254.2 256.7 255.9 254.8 252.7 263.0 268.6 261.2 262.1 265.8 Gas................................................... .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 166.6 171.4 171.1 173.5 172.7 178.5 177.0 160.1 151.4 152.1 162.5 172.9 175.3 Apparel and staples................... 24.51 157.1 161.0 159.0 160.7 159.9 159.0 158.8 159.2 160.1 158.9 158.6 162.3 162.7 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1957-59 = 100) Grouping 19 p p t 5 i o r o 7 o r n - ­ ­ 59 a a 1 v g 9 e e 6 ® r 9 ­ Feb. Mar. Apr. May June July 1970 Aug. Sept. Oct. Nov. Dec.r Jan. 1 r 971 Feb. 100.00 172.8 170.5 171.1 170.2 169.0 168.8 169.2 168.8 165.8 162.3 161.5 164.4 165.6 164.! 86.45 173.9 170.3 170.8 170.0 168.1 168.0 168.5 167.7 163.7 159.4 159.0> 162.1 163.5 162. Durable.................................................. 48.07 176.5 169.6 171.0 168.4 167.6 167.3 167.4 166.7 160.4 153.5 151.4 ■ 156.1 158.1 157. 38.38 170.6 171.3 170.6 171.9 168.7 168.9 170.0 169.0 167.7 166.9 168.6i 169.7 170.2 169. 8.23 130.2 134.2 135.1 133.9 134.8 135 5 133.8 137.1 138.9 139 9 139.4 ■ 138.8 139.2 137. Utilities...................................................... 5.32 221.2 232.7 230.3 233.8 234.9 235!4 236.3 235.8 242.8 244.8 238.7 240.0| 241.5 242. Durable manufactures Primary and fabricated metals............ 12.32 162.5 156.5 157.8 154.7 155.2 155.6 157.1 157.1 154.2 145.6 142.1 146.1 150.01 151. Primary metals......................................... 6.95 149.1 139.2 141.9 138.9 142.6 142.7 145.2 145.6 142.6 133.9 129.3i 135.4 138.6 141. Iron and steel...................................... 5.45 140.3 129.8 134.4 133.0' 136.7 138*8 136.8 134.1 129.5 121.5 117.2: 122.3 128.2 133. Nonferrous metals and products.. 1.50 181.1 177.3 183.6 175.4 174.4 169.2 172.6 169.7 172.1 161.5 162.9' 177.1 175.7 173. Fabricated metal products.................. 5.37 179.8 178.9 178.3 175.2 171.4 172.3 172.5 171.9 169.2 160.6 158.7 160.0 i 164.6. 163. Structural metal parts....................... 2.86 173.3 174.6 174.4 170.2 164.2 164.4 162.9 164.0 162.7 158.0 158.2: 158.9 163.3 164. Machinery and related products......... 27.98 188.4 180.0 182.2 178.6 177.6 178.0 177.4 176.0 167.2 158.9 156.8 f 162.9 ' 164.1 163. 14.80 195.7 195.8 199.1 194.9 191.0 190.6 191.2 190.3 186.2 182.9 179.Cl 176.7 174.7 173. Nonelectrical machinery.................. 8.43 194.6 195.8 196.6 191.7 187.1 185.2 185.2 183.0 180.0 176.1 172.7 170.4 166.3 166. Electrical machinery.......................... 6.37 197.2 195.9 202.5 199.1 196.3 197.7 199.1 199.9 194.5 191.9 187.4, 185.1 185.9' 182. Transportation equipment................... 10.19 174.6 154.3 156.0 153.1 157.3 159.9 158.1 156.7 139.0 122.0 121.9' 142.5 148.6i 148. Motor vehicles and parts................ 4.68 166.9 142.1 148.9 148.0 158.5 164.4 164.8 164.7 127.3 95.4 96.9i 142.0' 158.8 166. Aircraft and other equipment.... 5.26 177,8 161.4 159.1 154.1 153.0 153.3 149.7 147.1 145.7 141.1 139.5 139.3 136.1 129. Instruments and related products. .. 1.71 194.4 194.0 193.6 195.4 191.3 187.9 187.0 183.3 181.8 181.3 181.7 180.5 181.4 179. 1.28 4.72 142.5 141.2 137.5 140.3 139.2 134.1 134.7 136.9 133.8 135.0 133.3' 135.4 138.7 136. Clay, glass, and stone products......... 2.99 156.0 155.0 151.7 154.6 152.6 149.4 148.8 150.1 148.7 149.4 148.5 152.6 151.3 150. 1.73 119.1 117.5 113.1 115.5 116.1 107.6 110.5 114.2 108.2 110.1 107.0i 105.8 116.9 Furniture and miscellaneous................. 3.05 176.7 174.0 174.2 173.5 169.1 168.3 167.3 166.1 164.8 165.2 166.7' 166.1 166.3 166. Furniture and fixtures........................... 1.54 186.9 179.4 180.4 179.5 174.4 173.8 172.5 172.9 171.7 173.9 174.7 174.5 174.5 173. Miscellaneous manufactures............... 1.51 166.4 168.4 167.8 167.4 163.6 162.6 162.0 159.1 157.7 156.3 158.5 157.5 158.0 159. Nondurable manufactures Textiles, apparel, and leather.............. 7.60 144.2 138.8 137.5 138.9 136.7 135.8 135.9 135.9 135.2 135.7 133.0i 135.6 134.6 132. Textile mill products 2.90 154.2 151.3 150.3 151.3 147.8 145.9 145.3 146.1 145.7 146.7 145.1 143.9 Apparel products............................ 3.59 149.2 141.7 140.1 140.8 137.7 139.0 140.9 140.7 139.3 138.7 135.5 141.7 139.0 Leather and products............................ 1.11 101.9 96.9 95.9 100.2 104.5 99.3 95.6 93.6 94.6 97.2 93.1 94.2 94.7 Paper and printing.................................. 8.17 164.4 164.6 164.4 165.0 163.0 161.7 161.9 162.1 157.6 157.7 160.5 159.7 160.5 160.. Paper and products........................... 3.43 175.6 174.8 174.9 176.3 174.5 170.8 172.0 172.9 166.2 168.0 171.7 169.5 Printing and publishing........................ 4.74 156.3 157.3 156.9 156.9 154.8 155.2 154.6 154.3 151.5 150.2 152.4 152.7 152.6 152.< Newspapers.......................................... 1.53 142.7 142.1 137.9 139.3 136.9 137.5 140.0 138.7 137.4 134.5 137.2 136.6 134.9 139. Chemicals, petroleum, and rubber.... 11.54 222.6 224.1 224.7 227.0 220.2 224.3 226.8 223.5 222.0 221.5 224.1 225.2 226.4 224.. Chemicals and products....................... 7.58 239.0 242.6 242.3 244.4 241.4 243.2 243.3 239.8 240.8 240.7 243.7 243.9 245.9 243. < Industrial chemicals........................... 3.84 283.0 284.3 284.8 289.2 281.3 285.8 285.7 280.7 282.0 282.9 285.4 281.7 284.6 Petroleum products................................ 1.97 143.8 143.0 146.6 147.9 146.5 147.8 145.5 147.5 150.3 150.1 154.2 156.0 154.5 iiij Rubber and plastics products........... 1.99 238.7 234.0 235.3 239.4 212.2 227.8 244.8 236.9 221.4 219.1 218.9 222.3 223.8 Foods, beverages, and tobacco............. 11.07 139.0 143.5 141.3 142.3 141.3 139.2 140.0 140.1 141.0 138.4 141.2 142.7 143.0 142.\ Foods and beverages............................. 10.25 140.7 145.2 143.3 143.7 143.1 140.7 141.1 141.6 142.4 139.6 142.7 144.4 144.7 144.: Food manufactures............................ 8.64 136.7 140.4 140.0 140.1 141.0 138.3 139.5 138.8 138.7 135.7 139.4 140.1 140.9 140. * Beverages............................................ 1.61 161.9 170.7 161.0 162.8 154.6 153.7 149.6 156.4 162.2 160.3 160.7 167.6 165.3 Tobacco products................................... .82 117.3 122.8 116.8 125.1 117.8 120.7 126.6 121.8 122.9 124.1 121.6 121.7 121.9 Mining Coal, oil, and gas.................................... 6.80 127.4 130.2 130.5 129.8 132.3 133.3 131.0 135.1 138.2 139.2 137.1 136.2 136.6 134.8 Coal............................................................. 1.16 117.7 122.3 121.5 123.0 134.2 124.3 127.5 128.5 127.9 128.1 127.3 130.1 131.1 129.5 Crude oil and natural gas.................... 5.64 129.3 131.8 132.4 131.3 131.9 135.1 131.7 136.5 140.3 141.5 139.1 137.4 137.7 135.9 Oil and gas extraction....................... 4.91 139.0 140.6 141.2 142.9 143.9 146.7 143.2 148.2 152.1 152.6 151.2 148.5 148.9 147.0 Crude oil........................................... 4.25 132.0 133.0 133.5 135.2 135.8 137.5 134.4 139.8 144.1 145.1 143.8 141.0 141.5 138.7 Gas and gas liquids .66 184.0 Oil and gas drilling . .... .73 64.2 Metal, stone, and earth minerals........ 1.43 143.5 153.5 156.8 153.1 146.6 146.1 146.8 146.6 142.2 143.3 150.1 151.4 151.4 148.7 Metal mining........................................... .61 142.0 158.4 165.8 162.6 151.8 150.3 150.9 152.3 144.5 145.1 160.1 159.7 157.8 154.4 Stone and earth minerals..................... .82 144.7 149.8 150.1 146.1 142.8 143.0 143.8 142.3 140.5 142.0 142.7 145.2 146.7 144.4 Utilities Electric........................................................ 4.04 233.0 246.1 242.8 247.1 248.4 248.7 249.5 248.6 257.1 259.6 251.5 253.0 254.6 , 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. □ APRIL 1971 MARKET GROUPINGS (1957-59=100) 1957-59 1970 1971 pro­ 1969 Grouping por­ a a v ge e * r- 5 tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Total index......................................... 100.00 172.8 171.5 172.1 170.6 169.1 172.1 163.6 169.1 170.2 166.5 162.9 162.5 164.3 165.4 Final products, total.............................. 47.35 170.8 170.5 169.9 166.9 165.8 169.9 161. 167.1 168.8 164.7 160.2 160.0 163.5 162.4 Consumer goods............................... 32.31 162.5 163.0 161.8 160.6 160.3 165.7 157.6 165.3 168.1 164.0 158.0 157.0 164.4 164.5 Equipment, including defense... 15.04 188.6 186.5 187.3 180.3 177.7 179.0 170.9 170.9 170.4 166.1 164.8 166.4 161.2 158.2 Materials.................................................. 52.65 174.6 172.5 174.0 174.3 172.1 174.1 165.3 170.9 171.5 168.5 165.4 164.7 165.0 168.1 Consumer goods Automotive products............................. 3.21 173.2 161.6 167.0 167.0 173 182.9 131.6 116.6 135.2 118.9 117.5 148.4 175.0 184.0 Autos........................................................ 1.82 162.8 140.4 152.2 152.4 173.2 185.0 98.3 68.9 108.5 88.0 87.5 137.6 169.1 184.9 Auto parts and allied products.... 1.39 186.8 189.4 186.5 186.3 174.4 180.1 175.6 179.5 170.3 159.7 157.0 162.5 182.7 182.9 Home goods and apparel..................... 10.00 159.3 158.6 158.3 157.1 154.1 156.4 143.7 154.1 156.2 162.0 154.6 142.1 150.2 155.7 Home goods........................................... 4.59 184.0 178.4 182.9 181.4 177.5 180.0 168.7 174.1 182.9 190.9 184.5 171.2 174.9 179.9 Appliances, TV, and radios......... 1.81 180.2 181.6 190.1 188.3 185.7 186.0 172.3 170.1 189.9 205.7 188.2 156.1 176.7 187.3 Appliances...................................... 1.33 192.4 201.9 215.7 223.0 219.8 213.0 200.6 182.8 208.3 223.0 202.1 168.8 197 208.4 TV and home radios.................. .47 145.6 124.3 117.8 90.3 89.5 110.0 92.3 134.2 138.0 157.2 148.9 120.3 117.0 127.7 Furniture and rugs........................... 1.26 180.3 167.2 168.3 165.8 159.2 162.9 157.3 168.7 169.0 175.2 175.6 176. 170.1 169.8 Miscellaneous home goods........... 1.52 191.5 183.9 186.3 186.2 183.0 186.9 173.9 183.4 186.0 186.3 187.6 184.6 176.8 179.4 Apparel, knit goods, and shoes.... 5.41 138.5 141.8 137.4 136.5 134.4 136.4 122.5 137.2 133.7 137.5 129.3 117.5 129.2 Consumer staples.................................. 19.10 162.4 165.6 162.8 161.4 161.2 167.7 169.2 179.4 179.8 172.6 166.6 166.3 169.4 166.6 Processed foods.................................... 8.43 136.6 133.2 131.6 129.8 132.6 136.5 138.0 153.0 155.0 150.1 143.6 137.2 134.4 131.7 Beverages and tobacco....................... 2.43 146.8 140.8 142.8 151.7 152.8 163.3 148.7 156.7 152.7 152.4 139.8 131.7 135.0 Drugs, soap, and toiletries................ 2.97 209.0 220.1 216.5 216.4 215.2 225.0 216.3 218.2 222.0 220.2 221.2 221.6 222.7 223.1 Newspapers, magazines, and books 1.47 147.1 147.0 148.3 146.6 146.5 145.5 142.9 144.8 141.8 140.7 141.3 144.4 144.2 144.5 Consumer fuel and lighting.............. 3.67 199.6 218.4 209.1 200.0 193.7 203.6 226.3 236.7 236.2 211.1 202.6 219.8 238.2 Fuel oil and gasoline....................... 1.20 144.6 150.0 148.7 144.3 144.8 151.3 151.0 153.3 156.2 151.2 153.9 160.9 161.7 156.5 Residential utilities.......................... 2.46 226.3 Electricity....................................... 1.72 249.7 282.2 262.9 246.1 231.9 247.9 296.0 316.1 315.7 265.1 244.8 276.0 314.0 Gas................................................... .74 Equipment Business equipment............................... 11.63 195.6 197.3 199.5 194.0 189.7 191.9 182.9 183.5 183.4 178.8 177.2 179.7 173. 171.6 Industrial equipment........................... 6.85 179.1 184.9 187.0 182.1 176.0 178.7 172.9 172.8 172.0 168.7 167.9 169.3 164.7 160.5 Commercial equipment...................... 2.42 220.0 220.8 223.0 219.2 217.8 221.1 213.9 214.2 213.7 209.1 208.2 208.8 200.9 198.0 Freight and passenger equipment. . 1.76 246.7 231.8 232.9 224.0 223.3 222.4 203.2 207.9 204.4 193.7 190.7 200.3 197.5 195.5 Farm equipment................................... .61 136.8 143.9 150.5 140.1 134.4 135.6 114.1 110.9 131.0 127.8 119.4 122.0 98.4 Defense equipment................................ 3.41 Materials Durable goods materials...................... 26.73 165.5 158.4 161.3 160.4 159.5 162.0 153.2 156.0 154.9 147.1 143.6 146.9 145.9 149.6 Consumer durable............................... 3.43 163.9 144.4 147.3 147.9 150.4 158.5 142.7 147.6 140.7 111.5 114.5 146.0 155.3 154.7 Equipment.............................................. 7.84 191.9 190.3 191.9 185.8 178.7 178.4 172.9 170.6 171.4 166.2 164.3 166.1 164.9 163.3 Construction........................................... 9.17 152.4 141.1 144.0 148.1 149.6 154.1 150.1 155.7 153.4 149.4 142.7 137.7 130.5 136.9 Metal materials n.e.c........................... 6.29 152.8 151.6 156.1 153.6 154.9 154.8 138.9 142.9 144.3 139.5 134.8 137.0 143.9 149.8 Nondurable materials........................... 25.92 183.9 186.9 187.1 188.5 185.1 186.6 177. 186.2 188.6 190.5 188.0 182.9 184.9 187.7 Business supplies.................................. 9.11 166.6 165.6 167.8 169.3 164.8 165.1 154.7 165.0 165.2 167.4 164.4 156.6 155.9 159.9 Containers.......................................... 3.03 168.6 167.3 165.8 172.2 169.9 171.1 157.9 177.6 173.1 176. 164.2 148.2 158.7 164.8 General business supplies.............. 6.07 165.5 164.7 168.8 167.8 162.3 162.1 153.1 158.8 161.3 162.7 164.5 160.8 154.5 157.4 Nondurable materials n.e.c............... 7.40 237.8 243.8 241.9 245.7 236.6 238.5 226.0 231.1 235.8 241.6 240.9 232.9 235.3 243.6 Business fuel and power.................... 9.41 158.2 162.9 162.8 162.1 164.3 166.5 162.3 171.3 174.0 172.7 169.2 169.1 171.2 170.6 Mineral fuels...................................... 6.07 134.9 141.6 140.5 140.9 142.0 140.8 131.1 142.6 145.7 148.5 148.0 146.8 147.9 148.4 Nonresidential utilities................... 2.86 216.7 Electricity....................................... 2.32 220.6 221.1 223.6 220.7 227.3 239.0 247.1 253.4 252.9 240.4 226.4 229.4 235.3 General industrial................... 1.03 216.1 212.6 217.0 217.7 222.9 228.4 226.1 229.9 229.2 223.5 216.3 217.3 218.7 Commercial and other........... 1.21 236.1 240.4 241.0 235.1 243.1 261.0 279.0 288.1 287.2 267.5 246.8 251.6 261.8 Gas................................................... .54 Supplementary groups of consumer goods Automotive and home goods. 7.80 179.5 171.5 176.3 175.5 176.0 181.2 153.5 150.4 163.2 161.3 156.9 161.8 174.9 181.6 Apparel and staples.................. 24.51 157.1 160.3 157.2 155.9 155.3 160.8 158.9 170.0 169.6 164.9 158.4 155.5 160.6 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1957-59= 100) 1970 1971 1957-59 1969 Grouping pro­ aver­ p ti o o r n ­ age p Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec Jan.r Feb. Total index. 100.00 172.8 171.5 172.1 170.6 169.1 172.1 163.6 169.1 170.2 166.5 162.9 162.5 164.3 165.4 Manufacturing, total., 86.45 173.9 171.3 172.2 171.0 168. 171.8 161.6 166.4 167.6 164.5 161.2 160.0 161.3 163.3 Durable.................... 48.07 176.5 170.7 173.5 170.5 169.4 171.3 159.8 161.0 162.3 156.3 153.3 156.7 157.8 158.6 Nondurable............. 38.38 170.6 172.0 170.6 171.7 168. 172.3 163.8 173.2 174.2 174.8 171.1 164.2 165.7 169.1 Mining........................... 8.23 130.2 134.1 134.0 135.0 137.9 137.6 129.2 138.2 140.1 141.8 140.5 139 138.7 137.3 Utilities......................... 5.32 221.2 Durable manufacture Primary and fabricated metals.......... 12.32 162.5 158.1 161.4 158.7 158.3 159.9 148.0 153.9 155.1 146.7 142. 145. 150.9 152.8 Primary metals...................................... 6.95 149.1 145 150.7 147.9 149. 147.6 131.1 137.2 137.9 132.2 128.0 131.2 141.4 147.7 Iron and steel.................................... 5.45 140.3 136.3 141.1 138.3 139.4 138. 124.5 128.7 128.2 123.3 118.4 120.5 132 139.8 Nonferrous metals and products. 1.50 181.1 180.0 185.6 183.1 183.6 179.7 155.3 168.0 173.3 164.6 162.9 170.0 172.7 176.3 Fabricated metal products................ 5.37 179.8 174.1 175.1 172.6 170.5 175.7 169.9 175.3 177.3 165.4 162.0 164.8 163.2 159.5 Structural metal parts.................... 2.86 173.3 167.6 167.6 165.1 163.4 167.7 162.9 168.1 169.2 162.7 160.6 160.5 160.0 158.3 Machinery and related products 27.98 188.4 182.9 185.8 181.0 179.5 181.4 168.2 165.5 167.7 160.8 158.9 164.6 166.1 166.0 Machinery............................................... 14.80 195.7 198.8 202.1 197.3 192.1 193.6 185.3 184.5 187.0 184.2 180.2 177.7 176.0 176.3 Nonelectrical machinery................ 8.43 194.6 199.7 202.1 197.4 191. 190.4 182.4 176.2 177.7 172.9 171.0 171 168.0 169.7 Electrical machinery....................... 6.37 197.2 197.6 202.1 197.2 192.4 197. 189.2 195.6 199.3 199.1 192.5 185.8 186.5 184.9 Transportation equipment................ 10.19 174.6 158.2 161.6 157.0 161.2 164.6 142.0 136.1 139.0 124.8 125.5 145.2 152.7 153.0 Motor vehicles and parts.............. 4.68 166.9 148.3 155.7 155.4 167.7 176.4 134.0 123.0 128.4 100. 102.5 144.8 166.7 174.3 Aircraft and other equipment... 5.26 177.8 163.8 163.7 154.9 152.4 151.2 146.1 144.5 145.1 141. 141.6 142.1 137.5 130.9 Instruments and related products.. 1.71 194.4 191.1 194.6 192.5 189.4 189.8 185.1 184.8 183 183.3 183.2 182.7 179.2 177.2 Ordnance and accessories.................. 1.28 Clay, glass, and lumber................ 4.72 142.5 132 134 139.9 140.7 143.3 139.9 146.9 143.2 143.0 134. 128.2 123.4 128.2 Clay, glass, and stone products. 2.99 156.0 142.9 145.8 154.0 155.0 159.7 157.0 161.8 157.2 157.6 150.0 144.5 134.7 138.3 Lumber and products.................. 1.73 119.1 114.6 113.7 115.5 116.1 115.1 110.5 121.1 119.0 117.8 108.6 100.1 104.0 Furniture and miscellaneous.. 3.05 176.7 169.3 171.0 169.0 165.2 168.5 161.9 170.9 170.9 173.9 173.1 171.7 162.7 162.2 Furniture and fixtures............. 1.54 186.9 176.7 178.2 174.7 169.2 173.5 168.2 lll.l 176.8 180.5 179.6 181.1 172.8 171.1 Miscellaneous manufactures. 1.51 166.4 161.7 163.6 163.2 161.1 163.4 155 163.9 164.8 167.2 166.4 162.2 152.5 153.0 Nondurable manufactures Textiles, apparel, and leather. 7.60 144.2 146.4 143.0 142.0 139.5 139.3 124.9 139.0 137. 141.3 135.6 125.4 132.3 140.0 Textile mill products................ 2.90 154.2 155.5 154.1 154.3 151.5 147.4 135.9 146.8 148.6 151.1 149.5 138 Apparel products....................... 3.59 149.2 152.3 147.1 145.7 142.5 145.3 128.2 144.9 142.1 146.3 138.2 126.1 134.8 Leather and products.............. 1.11 101.9 103.6 100.7 98.2 98.2 98.8 86.0 99.7 96.0 99.6 91.2 87.9 94.2 Paper and printing........... 8.17 164.4 166.1 165.7 168, 164.2 162.8 153.1 160.8 160.1 165.0 164.5 156.0 157.7 162.0 Paper and products......... 3.43 175.6 180.9 176.6 182.5 175.4 174.7 159.1 174.6 168.7 178.9 174.3 155.9 Printing and publishing. 4.74 156.3 155.4 157.8 158.8 156.1 154.3 148.8 150.8 153.8 155.0 157.4 156.1 147.8 150.8 Newspapers.................... 1.53 142.7 136.4 140.0 148.4 145.9 138.2 125.3 126.9 138.1 144.3 150.9 140.0 123.4 133.7 Chemicals, petroleum, and rubber. 11.54 222.6 228.0 226.9 228.3 220.1 229.2 219.3 223.3 227.5 226.6 225.9 222.1 222.7 227.2 Chemicals and products.................. 7.58 239.0 246.0 244.4 248.4 241.4 248.5 237.5 239.3 244.6 245.0 244.8 241.4 240.8 247.0 Industrial chemicals...................... 3. 283.0 290.0 287.6 295.0 281 287.2 276.0 276.5 284. 288.5 289.1 284.5 280.3 Petroleum products........................... 1.97 143.8 140.1 141.5 142.0 145.0 152.2 153.2 155.3 156.3 151.6 152.2 152.3 149.9 148.8 Rubber and plastics products........ 1.99 238.7 246.7 245.2 237.0 213.3 232.4 215.4 229.8 232.5 231.1 226.6 217.9 226.0 Foods, beverages, and tobacco. 11.07 139.0 135.5 134.6 135.2 137.5 142.7 140.4 153.6 154.2 151.0 143.3 136.7 135.2 133.7 Foods and beverages.................. 10.25 140.7 136.6 136.1 136.1 138.7 143.8 142.7 155.4 156.3 152.2 144.9 139.7 135.1 134.7 Food manufactures................ 8.64 136.7 134.0 132.2 130.6 133.2 136.9 138.1 152.8 154.6 150.6 144, 138.0 135.3 132.7 Beverages................................... 1.61 161.9 150.2 157.0 165.4 168.5 180.7 167.3 169.4 165.4 161.1 147.8 148.3 137.9 Tobacco products........................ .82 117.3 122.2 115.0 124.8 122.0 129.1 112.0 131.8 127.7 135.1 124.0 99.1 129.2 Mining Coal, oil, and gas................ 6.80 127.4 134.1 132.8 132.4 134.0 132.7 122.9 133.5 136.5 139.7 139.2 139.2 140.3 138.9 Coal........................................ 1.16 117.7 123.8 122.5 123.9 135.5 127.2 94.7 135.2 135.3 139.6 132.5 127.8 128.5 131.1 Crude oil and natural gas. 5.64 129.3 136.3 134.9 134.2 133.7 133.8 128.8 133.2 136.8 139.7 140.6 141.5 142.7 140.5 Oil and gas extraction.. 4.91 139.0 145.8 144.7 144.9 143.5 144.0 139. 144.4 148.1 150.6 151.7 151.3 152.4 152.4 Crude oil...................... 4.25 132.0 137.0 136.2 137.4 136.5 136.1 131.7 137.0 141.2 143.6 143.8 142.4 143.6 142.9 Gas and gas liquids.. .66 184.0 Oil and gas drilling .73 64.2 Metal stone, and earth minerals. 1.43 143.5 133.6 139.7 146.9 156.2 161.0 159.0 160.2 157.2 152.1 146.5 140.6 131.1 129.4 Metal mining..................................... .61 142.0 142.6 147.6 151.2 167.0 169.8 161.5 164.5 163.3 155.3 148.9 143.1 138. 139.0 Stone and earth minerals.............. .82 144.7 126.9 133.9 143.8 148.1 154.4 157.2 157.0 152.6 149.8 144.8 138.2 125.3 122.3 Utilities Electric. 4.04 233.0 247.2 240.3 231.6 229.2 242.8 268.0 280.2 279.7 253.9 234.2 249.3 268.8 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 □ APRIL 1971 SELECTED BUSINESS INDEXES (1957-59= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 Period Total To M t F a a i l n jo a r g l s C o u m p o o m r n a d o e r ­ s d k r u e E c t m t q s g u e r n i o p t u ­ pin M ri g a a s l t s e­ Mfg M . a g j r o o M r u i n i p i n g n i d n ­ u g s s try U iti t e il s ­ i u p n c ( t t a C i i e p m c o l n e i a i n z f t r t ­ ) g y a . ­ t s r C c t t a r i o o o c u n n t n c s ­ ­ ­ N T m r p t i o e o u c e l m n o t r u n a a a y l t ­ l l - — g ­ i - p m E lo m en y ­ t ­ P ro a l y ls ­ T s r a e o l t e t a a s i l l 3 s = ( C u 1 m 1 o 9 0 6 n e 0 7 ­ r ) m W = c ( s 1 o o a h 1 9 m d l o 0 6 e i 0 l 7 ­ t e y ) ­ 1952. 84.3 84.3 79.5 94.1 84.3 85.2 90.5 61.2 91.3 93.0 106.1 84.5 79 79.5 88.6 19S3, 91.3 89.9 85.0 100.5 92.6 92.7 92.9 66.8 94.2 95.6 111.6 93.6 83 80.1 87.4 1954, 85.8 85.7 84.3 88.9 85.9 86.3 90.2 71.8 83.5 93.3 101.8 85.4 82 80.5 87.6 1955, 96.6 93.9 93.3 95.0 99.0 97.3 99.2 80.2 90.0 96.5 105.5 94.8 89 80.2 87.8 1956, 99.9 98.1 95.5 103.7 101.6 100.2 104.8 87.9 87.7 99.8 106.7 100.2 92 81.4 90.7 1957. 100.7 99.4 97.0 104.6 101.9 100.8 104.6 93.9 83.6 100.7 104.7 101.4 97 84.3 93.3 1958. 93.7 94.8 96.4 91.3 92.7 93.2 95.6 98.1 74.0 97.8 95.2 93.5 98 86.6 94.6 1959. 105.6 105.7 106.6 104.1 105.4 106.0 99.7 108.0 81.5 101.5 100.1 105.1 105 87.3 94.8 1960, 108.7 109.9 111.0 107.6 107.6 108.9 101.6 115.6 80.6 103.3 99.9 106.7 106 88.7 94.9 1961. 109.7 111.2 112.6 108.3 108.4 109.6 102.6 122.3 78.5 102.9 95.9 105.4 107 89.6 94.5 1962. 118.3 119.7 119.7 119.6 117.0 118.7 105.0 131.4 82.1 105.9 99.1 113.8 115 90.6 94.8 1963. 124.3 124.9 125.2 124.2 123.7 124.9 107.9 140.0 83.3 86.1 108.0 99.7 117.9 120 91.7 94.5 1964. 132.3 131.8 131.7 132.0 132.8 133.1 111.5 151.3 85.7 89.4 111.1 101.5 124.3 128 92.9 94.7 1965. 143.4 142.5 140.3 147.0 144.2 145.0 114.8 160.9 88.5 93.2 115.8 106.7 136.6 138 94.5 96.6 1966. 156.3 155.5 147.5 172.6 157.0 158.6 120.5 173.9 90.5 94.8 121.8 113.5 151.7 148 97.2 99.8 1967, 158.1 158.3 148.5 179.4 157.8 159.7 123.8 184.9 85.3 100.0 125.4 113.6 155.1 153 100.0 100.0 1968. 165.5 165.1 156.9 182.6 165.8 166.9 126.6 202.5 84.5 113.2 129.3 115.2 167.9 165 104.2 102.5 1969. 172.8 170.8 162.5 188.6 174.6 173.9 130.2 221.2 123.7 133.8 117.3 180.8 171 109.8 106.5 1970 134.5 111.5 177.4 116.3 110.4 1970— M Fe a b r .. . . . . . . . . . . . . . . . . . . . . . . . 1 1 7 7 1 0 . . 1 5 1 1 6 69 9. .7 9 1 1 6 6 2 2 . . 4 0 1 1 8 8 6 6 . . 3 2 1 1 7 7 1 1 . . 5 7 1 1 7 7 0 0 . . 3 8 1 13 3 5 4 . . 1 2 2 2 3 3 2 0 . . 7 3 579.8 1 1 3 3 2 7 . . 0 0 1 13 3 5 5 . . 6 4 1 1 1 1 5 5 . . 2 0 1 1 8 79 2 . . 9 2 1 1 7 7 5 4 1 11 1 4 3 . . 5 9 1 1 0 0 9 9 . . 7 9 Apr............ 170.2 168.5 163.2 179.0 171.9 170.0 133.9 233.8 130.0 135.5 114.2 179.3 179 115.2 109.9 May........... 169.0 167.7 163.2 177.3 170.4 168.1 134.8 234.9 78.0 110.0 134.9 112.6 176.7 "178 115.7 110.1 June........... 168.8 167.1 162.8 176.3 171.2 168.0 135.5 235.4 120.0 134.5 112.3 178.6 178 116.3 110.3 July............ 169.2 166.8 163.5 173.7 171.4 168.5 133.8 236.3 116.0 134.4 111.9 178.1 180 116.7 110.9 Aug............ 168.8 166.5 163.5 173.0 171.2 167.7 137.1 235.8 76.2 135.0 134.1 110.9 179.0 180 116.9 110.5 Sept........... 165.8 163.1 160.1 169.6 168 9 163.7 138.9 242.8 118.0 134.3 111.1 178.4 181 117.5 111.0 Oct............. 162.3 159.8 157.0 165.9 164.8 159.4 139.9 244.8 115.0 133.6 106.4 168.8 179 118.1 111.0 Nov............ 161.5 159.4 157.0 164.5 163.8 159.0 139.4 238.7 r72.4 130.0 133.4 105.5 168.5 177 118.5 110.9 Dec............ 164.4 '•162.9 '162.4 164.2 '166.0 '162.1 '138.8 240.0 132.0 133.9 108.1 176.8 179 119.1 111.0 1971-—Jan............. r165.6 '■163.9 '165.2 '161.3 '167.2 '163.5 139.2 '241.5 117.0 '134.5 r107.9 179.1 r 182 119.2 111.8 Feb............. '164.9 r162.3 '164.0 '158.5 '167.7 '162.7 '137.2 '242.9 73.1 126.0 134.3 r107.4 r177.4 183 119.4 112.8 Mar.*5.... 165.2 162.8 165.4 157.3 168.0 162.9 139.8 242.0 134.4 107.0 178.2 186 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. value of total construction contracts, including residential, nonresidential, 5 Figure is for first quarter 1970. and heavy engineering; does not include data for Alaska and Hawaii. Employment and 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) 1970 1971 Type of ownership and type of construction 1968 1969 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Total construction 1............................. 61,732 67,425 5,249 6,140 6,757 5,417 6,552 6,177 6,229 5,398 5,453 5,144 4,974 4,383 4,993 By type of ownership: Public.............................................. 19,597 22,656 1,652 2,037 1,791 1,695 2,814 2,312 2,078 1,869 2,023 1,937 1,688 1,464 1,578 Private 1.......................................... 42,135 44,769 3,597 3,864 4,966 3,722 3,738 3,865 4,151 3,529 3,430 3,208 3,286 2,919 3,415 By type of construction: Residential building 1................ 24,838 25,219 1,482 1,974 2 466 2,122 2,347 2,347 2,349 2,176 2,301 1,947 2,045 1,631 Nonresidential building............. 22,512 25,667 2,269 2,191 2,412 1,749 2,469 2,469 2,331 1,943 1,862 1,701 1,693 1,711 Nonbuilding.................................. 14,382 16,539 1,498 1,975 1,877 1,544 1,361 1,361 1,549 1,278 1,289 1,497 1,235 1,041 Private housing units authorized. .. 1,330 1,299 1,137 1,099 1,263 1,321 1,306 1,275 1,326 1,371 r,S2i 1,487 1,768 1,635 ^1,622 (In thousands, S.A., A.R.) l 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

APRIL 1971 o CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total N f r a e o r s n m i­ ­ Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v t & e i l o o n p­ Other 2 dential Total Indus­ Com­ b O u th il e d r ­ Other ment trial mercial ings * 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 1970—Feb. 91,978 63,340 28,658 34,682 6,000 11,724 6,227 10,731 28,638 890 Mar. 90,718 64,159 29,381 34,778 5,916 11,831 6,099 10,733 26,559 766 Apr. r90,721 63,365 29,829 33,777 6,230 10,577 5,857 11.113 27,115 746 May r89,702 62,656 29,150 33.506 5,864 10,553 5,975 11.114 27,046 868 June >•90,063 61,652 27,698 33,954 5,892 10,903 5,878 11,281 '28,411 830 July. r89,084 r60,675 r27,014 33,661 5,915 10,027 5,932 11,787 '28,409 592 Aug. r89,987 r61,493 '27,536 33.957 6,241 10,188 5,959 11,569 '28,494 845 Sept. '91,007 r62,725 '28,768 33.957 5,741 10,375 5,686 12,155 '28,282 738 Oct. r92,338 r64,488 '30,531 33.957 5,983 10,210 5,572 12,192 '27,850 866 Nov. r92,895 '64,549 '31,791 32,758 5,752 9,278 5,575 12,153 '28,346 701 Dec. r97,978 '66,904 '33,275 r33,689 5,358 10,372 5,739 12,160 '31,074 768 1971—Jan.. 101,740 69,832 34,351 35,481 5,904 11,558 6,083 11,936 31,908 1,016 Feb.. 103,738 70,323 35,406 34,917 5,914 11,155 5,586 12,262 33,415 949 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.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. 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 fa - m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 1961............................ 1,313 247 277 473 316 974 3:J9 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 1970—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................ 1,393 176 311 592 314 835 78 480 141 135 6 46 41 5 35 July................ 1,603 264 335 652 352 827 95 681 143 141 2 49 43 6 37 Aug................. 1,425 181 298 640 306 838 94 493 132 129 3 40 34 6 38 Sept................ 1,509 198 262 673 376 881 122 506 133 131 2 40 34 6 41 Oct.................. 1,583 227 331 649 376 890 87 606 143 141 2 46 40 6 41 Nov.r............. 1,693 262 355 737 339 934 111 648 128 127 1 39 34 5 30 Dec.'............. 2,054 234 427 916 477 1,240 102 712 124 121 3 69 63 6 27 1971—Jan.................. 1,709 238 320 716 435 937 110 662 114 110 4 37 32 5 25 Feb.®............. 1 715 244 284 724 463 975 111 629 102 100 2 32 27 5 28 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation 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 □ APRIL 1971 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 t a . n A i t o o i . o n n ) n a - l la ( b N N o . o r S t . f A i o n . r ) ce ( 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 l l t n o u a y r g a e l r d i 2 - In U pl n o e y m ed ­ U (p n e m r e S a r m . e A t c e n p e . 1 t l ) n o t y ; ­ industries agriculture 1965............................... 129,236 52,058 77,178 74,455 71,088 66,726 4,361 3,366 4.5 1966............................... 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 19673............................ 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 1968............................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969............................... 137,841 53,602 84,239 80,733 77,902 74,296 3,606 2,831 3.5 1970............................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1970— Mar.................. 139,497 54,489 85,918 82,600 78,969 75,436 3,533 3,631 4.4 Apr................... 139,687 54,456 86,031 82,760 78,886 75,317 3,569 3,874 4.7 May................. 139,884 54,915 85,849 82,621 78,601 75,031 3,570 4,020 4.9 June................. 140,046 52,816 85,392 82,213 78,299 74,763 3,536 3,914 4.8 July.................. 140,259 52,304 85,865 82,711 78,574 75,066 3,508 4,137 5.0 Aug................... 140,468 53,220 85,904 82,770 78,508 75,073 3,435 4,262 5.1 Sept.................. 140,675 55,019 86,084 82,975 78,479 75,043 3,436 4,496 5.4 Oct.................... 140,886 54,631 86,379 83,300 78,691 75,398 3,293 4,609 5.5 Nov.................. 141,091 54,705 86,512 83,473 78,550 75,197 3,353 4,923 5.9 Dec................... 141,301 55,137 86,622 83,609 78,463 75,055 3,408 5,146 6.2 1971—Jan.................... 141,500 55,872 86,873 83,897 78,864 75,451 3,413 5,033 6.0 Feb................... 141,670 56,017 86,334 83,384 78,537 75,208 3,329 4,847 5.8 Mar................... 141,885 56,286 86,405 83,475 78,475 75,079 3,396 5,000 6.0 1 Per cent of civilian labor force. Note.—Bureau of Labor Statistics. Information relating to persons 16 2 Includes self-employed, unpaid family, and domestic service workers. 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) Period Total M t a u n ri u n f g ac­ Mining c C o o n t n i s o t t r r n a u c c t ­ t T i li o r c a n n u s & ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 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 1970................................................................... 70,664 19,393 622 3,347 4,498 14,950 3,679 11,577 12,597 SEASONALLY ADJUSTED 1970—Mar...................................................... 71,242 19,944 626 3,481 4,502 14,984 3,665 11,537 12,503 Apr....................................................... 71,149 19,795 622 3,426 4,468 14,991 3,673 11,564 12,610 May..................................................... 70,839 19,572 620 3,351 4,478 14,968 3,677 11,572 12,601 June..................................................... 70,629 19,477 620 3,324 4,511 14,927 3,679 11,532 12,559 July...................................................... 70,587 19,402 618 3,314 4,539 14,933 3,676 11,514 12,591 Aug...................................................... 70,414 19,271 619 3,305 4,520 14,912 3,670 11,521 12,596 Sept...................................................... 70,531 19,285 621 3,262 4,511 14,961 3,684 11,622 12,585 Oct....................................................... 70,182 18,684 621 3,278 4,509 15,011 3,696 11,665 12,718 Nov...................................................... 70,085 18,538 625 3,303 4,493 14,945 3,711 11,695 12,775 Dec....................................................... 70,303 18,842 625 3,319 4,437 14,851 3,723 11,727 12,779 1971—Jan........................................................ 70,652 18,807 625 3,241 4,499 15,133 3,746 11,778 12,823 Feb.®.................................................... 70,559 18,718 624 3,182 4,515 15,133 3,745 11,786 12,856 Mar.?.................................................. 70,568 18,655 622 3,229 4,515 15,135 3,753 11,780 12,879 NOT SEASONALLY ADJUSTED 1970—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...................................................... 70,602 19,325 635 3,572 4,593 14,924 3,738 11,698 12,117 Aug...................................................... 70,527 19,446 636 3,606 4,574 14,869 3,732 11,648 12,016 Sept...................................................... 70,922 19,512 628 3,500 4,561 14,936 3,695 11,634 12,456 Oct....................................................... 70,692 18,850 622 3,471 4,527 15,038 3,689 11,677 12,818 Nov...................................................... 70,644 18,645 623 3,379 4,515 15,191 3,697 11,660 12,934 Dec....................................................... 71,234 18,864 621 3,226 4,446 15,744 3,704 11,645 12,984 1971—Jan........................................................ 69,622 18,622 611 2,910 4,427 14,899 3,701 11,554 12,898 Feb p.................................................... 69,503 18,557 607 2,819 4,438 14,749 3,708 11,609 13,016 Mar.?.................................................. 69,782 18,508 606 2,932 4,456 14,814 3,727 11,674 13,065 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

APRIL 1971 o EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1970 1971 1970 1971 Mar. Jan. Feb.P Mar.2* Mar. Jan. Feb.P Mar.p 14,512 13,595 13,530 13,480 14,385 13,432 13,395 13,357 8,409 7,679 7,633 7,566 8,379 7,634 7,595 7,538 Ordnance and accessories............................................ 151 110 105 102 150 112 105 102 Lumber and wood products........................................ 511 492 493 500 498 473 477 487 Furniture and fixtures................................................... 390 371 369 370 388 370 367 367 Stone, clay, and glass products.................................. 517 496 496 488 503 477 475 475 Primary metal industries............................................... 1,063 992 992 985 1,066 986 992 987 Fabricated metal products.......................................... 1,087 1,014 1,013 991 1,079 1,011 1,008 984 Machinery......................................................................... 1,381 1,190 1,177 1,160 1,395 1,192 1,188 1,172 Electrical equipment and supplies............................. 1,323 1,181 1,176 1,168 1,313 1,187 1,177 1,160 Transportation equipment........................................... 1,358 1,254 1,234 1,237 1,372 1,266 1,244 1,251 Instruments and related products............................. 289 261 259 252 289 261 259 252 Miscellaneous manufacturing industries................. 339 318 319 313 326 299 303 301 6,103 5,916 5,897 5,914 6,006 5,798 5,800 5,819 Food and kindred products........................................ 1,235 1,199 1,201 1,209 1,153 1,134 1,120 1,128 Tobacco manufactures.................................................. 67 63 63 63 60 62 60 57 Textile-mill products...................................................... 861 835 831 827 858 826 825 825 Apparel and related products..................................... 1,223 1,208 1,198 1,211 1,230 1,185 1,205 1,218 Paper and allied products............................................ 558 535 533 530 552 530 527 524 Printing, publishing, and allied industries.............. 690 673 671 668 690 669 669 668 Chemicals and allied products.................................... 613 595 593 595 615 588 590 596 Petroleum refining and related industries................ 119 117 117 117 116 114 114 113 Rubber and misc. plastic products............................. 453 420 422 428 449 419 421 424 Leather and leather products...................................... 284 271 268 266 283 271 269 266 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 1970 1971 1970 1971 1970 1971 Mar. Jan. Feb.? Mar.? Mar. Jan. Feb.? Mar.P Mar. Jan. Feb.** Mar.p 40.2 39.8 39.5 39.9 132.40 138.60 138.29 139.74 3.31 3.50 3.51 3.52 40.7 40.4 40.1 40.5 142.51 149.57 149.23 151.10 3.51 3.73 3.74 3.74 41.1 41.2 41.8 42.1 145.66 156.83 155.70 156.75 3.57 3.77 3.77 3.75 Lumber and wood products......................... 39.5 39.4 40.1 40.3 112.97 117.09 120.56 124.12 2.86 3.01 3.06 3.08 Furniture and fixtures...................................... 39.4 39.5 39.2 39.8 105.96 110.09 109.91 112.97 2.71 2.83 2.84 2.86 Stone, clay, and glass products.................... 41.8 41.2 41.2 41.7 137.12 142.21 143.42 146.67 3.32 3.52 3.55 3.56 Primary metal industries................................ 40.7 40.3 40.6 41.4 157.49 164.83 166.05 170.57 3.86 4.08 4.10 4.11 Fabricated metal products............................. 41.2 40.5 40.2 40.3 142.33 147.17 146.07 146.40 3.48 3.67 3.67 3.66 Machinery............................................................ 41.8 40.2 40.1 40.1 157.88 155.57 156.39 157.96 3.75 3.87 3.90 3.91 Electrical equipment and supplies............... 40.2 39.8 39.2 39.6 129.92 135.83 134.85 136.67 3.24 3.43 3.44 3.46 Transportation equipment............................. 40.4 41.3 41.5 41.6 160.40 182.10 181.56 181.66 4.01 4.42 4.45 4,.42 Instruments and related products................ 40.7 39.7 39.3 40.0 133.50 136.28 135.98 139.20 3.28 3.45 3.46 3..48 Miscellaneous manufacturing industries... 39.0 38.8 37.8 38.6 109.20 112.22 111.72 112.71 2.80 2.93 2.94 2,,92 Nondurable goods...................................................... 39.4 39.3 38.8 39.0 118.78 124.09 123.52 124.55 3.03 3.19 3.20 3.21 Food and kindred products........................... 40.5 40.8 40.6 40.1 124.00 134.13 132.87 132.26 3.10 3.32 3.33 3.34 Tobacco manufactures.................................... 37.5 39.4 36.1 37.1 105.56 115.28 107.81 113.04 2.90 3.01 3.02 3.14 Textile-mill products........................................ 40.2 40.4 40.2 40.3 97.04 101.60 101.85 102.51 2.42 2.54 2.54 2.55 Apparel and related products....................... 35.6 35.2 34.7 35.1 84.85 85.61 86.06 87.54 2.37 2.46 2.48 2.48 Paper and allied products.............................. 42.2 41.9 41.8 41.7 140.70 147.74 147.80 148.99 3.35 3.56 3.57 3.59 Printing, publishing, and allied industries. 38.0 37.7 37.4 37.4 145.92 151.03 151.78 153.34 3.84 4.06 4.08 4.10 Chemicals and allied products...................... 41.8 41.6 41.5 41.6 150.48 157.77 158.18 159.74 3.60 3.82 3.83 3.84 Petroleum refining and related industries . 42.2 42.6 43.5 42.9 176.81 185.64 190.40 190.40 4.23 4.42 4.48 4.48 Rubber and misc. plastic products............. 40.7 40.1 40.0 39.9 127.26 132.47 131.08 130.28 3.15 3.32 3.31 3.29 Leather and leather products........................ 37.4 37.0 36.6 37.0 91.64 95.23 95.20 95.42 2.47 2.56 2.58 2.60 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 □ APRIL 1971 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H o s w 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 a G i l c n e a i c d t s ­ y o n F i p a n i n u e s g r d h 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 r h v d d e ­ s r tion tion ices 1929............................. 51.3 48.3 76.0 48.5 1933.............................. 38.8 30.6 54.1 36.9 1941............................. 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945............................. 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960.............................. 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1961.............................. 89.6 89.1 90.9 92.9 86.9 91.0 99.4 93.7 90.4 90.6 86.7 81.4 90.6 89.3 88.5 1962.............................. 90.6 89.9 91.7 94.0 87.9 91.5 99.4 93.8 90.9 92.5 88.4 83.5 92.2 91.3 89.1 1963.............................. 91.7 91.2 92.7 95.0 89.0 93.2 99.4 94.6 91.9 93.0 90.0 85.6 93.4 92.8 90.6 1964.............................. 92.9 92.4 93.8 95.9 90.8 92.7 99.4 95.0 92.7 94.3 91.8 87.3 94.5 95.0 92.0 1965.............................. 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966.............................. 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967.............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.............................. 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969.............................. 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970—Feb.................. 113.9 114.1 115.7 108.4 123.5 108.1 105.6 111.6 114.0 109.8 113.7 117.1 111.7 110.9 113.6 Mar.................. 114.5 114.2 116.9 108.8 125.5 108.2 105.8 112.4 114.6 109.7 114.2 118.2 112.2 111.2 114.0 Apr.................. 115.2 114.6 117.6 109.1 126.5 108.3 106.6 112.8 115.0 111.2 114.9 119.1 112.4 111.9 114.7 May................ 115.7 114.9 118.2 109.4 127.5 108.4 106.7 113.2 115.7 112.1 115.4 119.7 112.8 112.6 115.1 June................ 116.3 115.2 118.6 109.8 128.5 108.6 106.3 113.5 116.0 112.7 116.1 120.5 112.7 113.3 115.7 July................. 116.7 115.8 119.2 110.1 129.0 109.6 106.6 113.7 115.3 113.4 116.6 121.3 113.1 113.7 116.2 Aug.................. 116.9 115.9 119.9 110.5 130.0 110.1 107.3 113.9 115.4 112.7 117.2 122.0 113.7 114.2 116.8 Sept.................. 117.5 115.7 120.6 110.9 131.3 111.4 107.6 114.2 117.2 113.0 117.7 122.6 H4.0 114.7 117.4 Oct................... 118.1 115.5 121.2 111.4 131.9 112.5 108.8 114.5 118.2 115.2 118.2 122.8 114.4 115.2 118.0 Nov.................. 118.5 114.9 121.9 111.8 132.5 113.9 109.9 115.1 119.0 116.0 118.7 123.4 114.5 116.0 118.3 Dec.................. 119.1 115.3 122.6 112.6 133.4 114.9 110.7 115.3 119.2 116.9 119.1 124.2 115.0 116.2 118.5 1971—Jan................... 119.2 115.5 122.7 112.9 133.4 116.7 111.5 115.4 117.6 117.5 119.8 124.9 115.3 117.3 118.9 Feb.................. 119.4 115.9 122.6 113.6 132.3 117.2 112.8 115.9 118.1 117.5 120.2 125.8 115.4 117.5 119.1 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Pro­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t d m s ­ c f f e o a e s o n e s 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 e r u i a y n d n i ­ p ­ t ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i a o e 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 ­ I960.................................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961.................................. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962.................................. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963.................................. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964.................................. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965.................................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966................................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967.................................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968.................................. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969.................................. 106.5 108.8 107.3 106.0 105.9 108.6 101.0 99.9 105.4 125.2 104.2 108.5 106.4 104.9 108.1 100.7 104.9 1970—Feb...................... 109.7 114.0 112.1 108.7 107.3 109.4 102.7 101.1 107.9 114.0 107.7 115.1 109.8 106.7 112.1 102.9 107.5 Mar...................... 109.9 114.6 111.8 108.9 107.4 109.5 102.6 101.6 107.7 113.4 108.0 115.9 110.1 106.9 112.5 103.2 107.8 Aprl.................... 109.9 111.6 111.8 109.3 107.2 111.0 103.8 102.0 107.5 113.9 108.4 116.6 110.4 107.1 112.9 103.1 107.8 May.................... 110.1 111.3 111.1 109.7 107.2 110.4 105.3 102.2 107.5 114.8 108.2 117.4 110.6 107.1 113.0 103.2 108.1 June.................... 110.3 111.6 111.7 109.8 107.2 109.9 104.8 102.1 107.4 114.0 108.1 117.8 111 .0 107.4 113.0 103.3 110.7 July..................... 110.9 113.4 113.3 110.0 107.1 109.8 105.1 102.5 109.0 113.5 108.4 117.7 111.5 107.6 113.2 103.2 111.1 Aug...................... 110.5 108.5 112.9 110.2 107.4 109.8 105.8 102.7 109.7 114.0 108.2 117.5 H i'6 107.7 113.6 103.3 111.2 Sept...................... 111.0 112.1 113.0 110.4 107.5 109.9 107.1 102.5 109.4 114.2 108.3 117.4 m .i 107.8 113.8 103.6 111.5 Oct....................... 111.0 107.8 111.8 111.3 107.3 110.4 108.7 103.0 109.5 113.1 108.9 117.7 112.7 108.0 114.2 108.2 111.6 Nov...................... 110.9 107.0 111.7 111.3 107.1 110.9 109.7 103.3 109.1 111.9 108.7 116.8 113.1 108.4 114.6 108.5 111.8 Dec...................... 111.0 107.1 110.7 111.7 106.7 110.4 112.8 103.3 109.4 111.1 108.5 116.2 113.8 108.7 115.1 108.9 111.9 1971—Jan....................... 111.8 108.9 111.8 112.2 106.9 111.7 113.5 103.8 108.4 112.2 109.0 116.5 114.2 109.3 118.8 109.5 112.3 Feb...................... 112.8 113.9 113.3 112.5 106.7 112.4 113.0 104.2 109.1 117.5 109.3 116.4 114.6 109.7 119.0 109.7 112.6 i For transportation equipment, Dec, 1968 = 100, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1970 1971 1970 1971 Group Group Mar. Jan. Feb. Mar. Jan. Feb. Mar. Farm products: Pulp, paper, and allied products: Fresh and dried produce. 116.3 115.7 118.3 125.3 Pulp, paper and products, excluding Grains................................... 92.7 111.0 111.7 108.4 building paper and board............. 108.3 109.4 109.6 109.6 Livestock.............................. 128.2 102.2 118.9 114.9 Woodpulp............................................... 106.8 112.2 112.2 112.2 Live poultry......................... 110.9 96.3 100.0 100.1 Wastepaper............................................. 138.9 107.8 105.9 104.8 Plant and animal fibers. . 90.0 87.0 88.0 88.9 Paper........................................................ 110.5 112.6 112.7 113.1 Fluid milk........................... 114.6 117.6 117.7 118.1 Paperboard............................................. 102.1 99.3 101.3 102.5 Eggs....................................... 142.5 113.3 97.6 101.2 Converted paper and paperboard.. 107.6 109.3 109.4 109.0 Hay and seeds.................... 92.1 108.7 108.6 107.6 Building paper and board................. 101.1 100.1 100.4 101.4 Other farm products........ 115.3 119.9 119.5 116.1 Processed foods and feeds: Metals and metal products: Cereal and bakery products............ 105.6 111.0 111.1 111.5 Meat, poultry, and fish..................... 121.0 108.6 115.2 112.9 Iron and steel........................................... 113.6 117.6 118.0 118.2 Dairy products.................................... 109.2 112.8 112.3 115.0 Steelmill products.................................. 111.8 116.8 117.0 118.0 Processed fruits and vegetables___ 108.7 111.2 111.5 111.9 Nonferrous metals................................. 126.9 115.4 114.2 113.7 Sugar and confectionery................... 112.7 118.6 118.3 119.2 Metal containers.................................... 111.7 115.8 115.8 115.8 Beverages and beverage materials. 111.2 115.0 115.2 115.3 Hardware.................................................. 109.8 115.3 115.5 115.5 Animal fats and oils........................... 160.3 114.6 122.6 142.1 Plumbing equipment............................. 111.1 113.2 113.2 113.2 Crude vegetable oils........................... 123.4 124.9 127.6 128.8 Heating equipment................................ 108.4 113.6 114.1 114.5 Refined vegetable oils........................ 121.2 141.0 147.7 152.5 Fabricated structural metal products 110.2 115.2 115.7 116.6 Vegetable oil end products.............. 110.2 119.4 119.4 119.4 Miscellaneous metal products.... 111.6 117.7 117.7 117.9 Miscellaneous processed foods.... 112.9 111.8 111.9 113.7 Manufactured animal feeds............. 97.1 108.1 104.9 107.2 Textile products and apparel: Machinery and equipment: Cotton products................................ 105.1 107.1 107.5 107.8 Agricultural machinery and equip... 112.0 116.3 116.8 116.5 Wool products................................... 101.1 96.2 95.4 94.5 Construction machinery and equip.. 114.1 120.2 120.5 120.8 Manmade fiber textile products. 104.5 97.2 97.4 97.6 Metalworking machinery and equip 112.9 115.2 116.0 116.0 Apparel................................................. 110.4 112.3 112.0 112.2 General purpose machinery and Textile housefurnishings................. 102.5 103.3 103.4 103.5 equipment............................................. 111.9 117.0 117.3 117.8 Miscellaneous textile products. .. 107.5 106.8 107.3 106.7 Special industry machinery and equipment............................................ 114.5 119.3 119.4 119.6 Hides, skins, leather, and products: Electrical machinery and equip......... 105.3 108.8 109.3 109.7 Miscellaneous machinery.................... 111.9 116.1 115.9 116.3 Hides and skins............. 105.5 98.9 105.3 105.5 Leather............................. 107.2 108.2 108.7 108.6 Footwear......................... 112.1 116.0 116.3 116.5 Furniture and household durables: Other leather products. 105.8 107.4 107.6 107.5 Fuels and related products, and power: Household furniture........................... 111.0 112.9 113.9 114.0 Commercial furniture......................... 112.4 117.5 118.2 118.2 C E C G l o o a e s k a c t e l f r . . u . i . . . c . e . . . . l . . p . . s . . . o . . . . . . . . w . . . . . . . . . . . . e . . . . . . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 0 2 1 0 9 3 2 1 . . . . 1 3 9 0 1 1 1 1 0 0 4 7 9 9 5 6 . . . . 3 8 9 0 1 1 1 1 0 1 4 7 8 0 5 6 . . . . 1 9 2 0 1 1 1 1 1 4 0 7 1 5 6 9 . . . . 1 9 0 4 H H O Fl o o t o h m u o e s r r e e h c h e o o o le v l u d c e s t e r r a i o h n p n o g p i l s l c d i . a . e . d . n . q u . c . u . r e . a . i s . p . b . . . m . l . . . e . . . . e . . . g . n . . . . . o t . . . . . . o . . . . . . . . d . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . 1 1 9 9 1 0 9 3 5 5 . . . . 1 5 9 0 1 1 1 9 0 1 0 4 0 7 9 . . . . 4 8 0 4 1 1 1 9 1 0 0 4 7 9 0 . . . . 1 2 8 6 1 1 1 9 1 0 0 3 9 0 7 . . . . 8 7 2 0 Crude petroleum...................... 106.0 113.2 113.2 113.2 Petroleum products, refined. 98.6 107.9 106.9 105.9 Nonmetallic mineral products: Chemicals and allied products: Flat glass................................................. 114.3 123.1 123.1 125.3 Industrial chemicals............................... 99.9 101.8 101.9 102.2 Concrete ingredients........................... 114.1 117.6 117.3 120.6 Prepared paint.......................................... 112.4 114.5 114.5 115.1 Concrete products................................ 111.0 117.1 117.6 118.5 Paint materials......................................... 101.9 103.6 103.6 103.5 Structural clay products excluding Drugs and pharmaceuticals.................. 101.1 101.9 102.4 102.6 refractories......................................... 108.5 111.4 112.7 113.6 Fats and oils, inedible........................... 125.7 133.7 142.6 144.3 Refractories........................................... 119.4 126.7 126.7 126.7 Agricultural chemicals and products., $8.8 91.7 92.6 93.9 Asphalt roofing.................................... 104.0 108.8 108.8 123.6 Plastic resins and materials.................. 91.2 89.5 89.8 87.3 Gypsum products................................ 104.1 97.0 97.9 98.9 Other chemicals and products............ 107.6 111.0 111.2 111.5 Glass containers.................................... 119.6 131.9 131.9 131.5 Other nonmetallic minerals.............. 110.2 121.0 121.0 121.4 Rubber and plastic products: Crude rubber............................................... 102.8 99.5 99.1 99.1 Tires and tubes........................................... 105.9 107.5 107.5 107.5 Transportation equipment: Miscellaneous rubber products............. 111.3 117.0 117.0 117.2 Plastic construction products (Dec. Motor vehicles and equipment. 107.0 113.9 114.1 113.8 1969 = 100)............................................... 99.1 95.3 95.8 95.9 Railroad equipment...................... 114.6 119.0 119.0 119.9 Unsupported plastic film and sheeting. (Dec. 1970=100).................................. 100.0 102.9 102.7 Laminated sheets, high pressure........... (Dec. 1970=100).................................. 100.7 99.9 99.5 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms. ammunition....................................... 109.0 111.7 112.3 113.1 Lumber........................... 113.7 113.0 120.3 129.0 Tobacco products................................ 109.9 116.8 116.9 116.9 Millwork....................... 116.5 114.2 115.2 116.2 Notions.................................................... 107.6 111.3 111.3 111.7 Plywood......................... 105.9 104.9 112.8 120.2 Photographic equipment and supplies 104.2 105.6 105.6 105.8 Other wood products. 117.4 117.8 118.1 118.3 Other miscellaneous products.... 106.2 111.3 111.7 111.8 1 Retitled to include the direct pricing of plastic construction products; continuity of the group index is not affected. Note.—Bureau of Labor Statistics indexes, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 NATIONAL PRODUCT AND INCOME □ APRIL 1971 GROSS NATIONAL PRODUCT (In billions of dollars) 1969 1970 Item 1929 1933 1941 1950 1966 1967 1968 1969 1970 IV I II III IV Gross national product........................................ 103.1 55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 951.7 959.5 971.1 985.5 989.9 Final purchases.......................................................... 101.4 57.2 120.1 278.0 735.1 785.7 857.4 922.9 973.1 944.5 957.9 968.1 980.0 986.3 Personal consumption expenditures................... 77.2 45.8 80.6 191.0 466.3 492.1 535.8 577.5 616.7 592.6 603.1 614.4 622.1 627.0 Durable goods................................................... 9.2 3.5 9.6 30.5 70.81 73.1 84.0 90.0 89.4 90.8 89.1 91.9 91.2 85.3 Nondurable goods............................................ 37.7 22.3 42.9 98.1 206.9 215.0 230.2 245.8 264.7 252.0 258.8 262.6 265.8 271.5 Services............................................................... 30.3 20.1 28.1 62.4 188.6 204.0 221.6 241.6 262.6 249.8 255.2 259.9 265.1 270.2 Gross private domestic investment..................... 16.2 1.4 17.9 54.1 121.4 116.6 126.5 139.8 135.7 140.2 133.2 134.3 138.3 137.1 Fixed investment.................................................. 14.5 3.0 13.4 47.3 106.6 108.4 118.9 131.4 132.3 133.0 131.6 131.2 132.7 133.5 Nonresidential................................................... 10.6 2.4 9.5 27.9 81.6 83.3 88.7 99.3 102.6 102.6 102.6 102.8 103.6 101.3 Structures................................................... 5.0 .9 2.9 9.2 28.5 28.0 29.6 33.8 35.2 35.1 35.7 35.3 35.0 34.7 Producers’ durable equipment.............. 5.6 1.5 6.6 18.7 53.1 55.3 59.1 65.5 67.4 67.5 66.9 67.5 68.6 66.6 Residential structures.................................. 4.0 .6 3.9 19.4 25.0 25.1 30.3 32.0 29.7 30.4 29.1 28.4 29.2 32.2 Nonfarm.................................................... 3.8 .5 3.7 18.6 24.5 24.5 29.7 31.5 29.1 29.8 28.4 27.8 28.6 31.6 Change in business inventories..................... 1.7 -1.6 4.5 6.8 14.8 8.2 7.6 8.5 3.5 7.2 1.6 3.1 5.5 3.6 Nonfarm......................................................... 1.8 -1.4 4.0 6.0 15.0 7.5 7.5 8.0 2.9 6.5 .9 2.6 5.0 3.0 Net exports of goods and services..................... 1.1 .4 1.3 1.8 5.3 5.2 2.5 1.9 3.6 2.6 3.5 4.1 4.2 2.6 Exports............................................................... 7.0 2.4 5.9 13.8 43.4 46.2 50.6 55.5 62.2 58.8 61.1 62.8 62.8 62.0 5.9 2.0 4.6 12.0 38.1 41.0 48.1 53.6 58.6 56.2 57.6 58.7 58.6 59.3 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 156.8 180.1 200.2 212.2 220.5 216.3 219.6 218.4 221.0 223.2 Federal.................................................................... 1.3 2.0 16.9 18.4 77.8 90.7 99.5 101.3 99.7 102.1 102.3 99.7 98.6 98.2 National defense.......................................... 13.8 14.1 60.7 72.4 78.0 78.8 76.6 78.8 79.3 76.8 75.8 74.6 Other............................................................... 3.1 4.3 17.1 18.4 21.5 22.6 23.1 23.3 23.0 22.9 22.9 23.5 State and local.................................................. 7.2 6.0 7.9 19.5 79.0 89.4 100.7 110.8 120.9 114.2 117.4 118.7 122.4 125.0 Gross national product in constant (1958) dollars................................................................. 203.6 141.5 263.7 355.3 658.1 675.2 707.2 727.1 724.1 729.2 723.8 724.9 727.4 720.3 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 1966 1967 1968 1969 1970* Item IV I II III I vp National income.................................................... 86.8 40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.4 785.2 791.5 797.4 806.6 806.0 Compensation of employees................................ 51.1 29.5 64.8 154.6 435.5 467.2 514.1 564.2 599.8 582.1 592.2 596.4 603.8 606.7 Wages and salaries.............................................. 50.4 29.0 62.1 146.8 394.5 423.1 464.8 509.0 540.1 525.3 534.4 537.4 543.4 545.2 Private............................................................ 45.5 23.9 51.9 124.4 316.8 337.3 369.1 404.9 426.1 417.2 422.6 424.0 428.9 429.1 Military.......................................................... .3 .3 1.9 5.0 14.6 16.2 17.9 19.0 19.3 19.6 20.1 19.5 19.1 18.6 Government civilian.................................... 4.6 4.9 8.3 17.4 63.1 69.5 77.8 85.1 94.6 88.5 91.7 93.9 95.4 97.5 Supplements to wages and salaries................. .7 .5 2.7 7.8 41.0 44.2 49.3 55.7 59.7 56.8 57.9 59.0 60.4 61.4 Employer contributions for social in­ surance ....................................................... .1 .1 2.0 4.0 20.3 21.9 24.3 27.5 29.3 28.3 28.6 29.0 29.6 29.9 Other labor income..................................... .6 .4 .7 3.8 20.7 22.3 24.9 27.6 30.4 28.5 29.3 30.0 30.8 31.5 Proprietors' income.............................................. 15.1 5.9 17.5 37.5 61.3 62.1 64.1 66.8 67.6 67.2 67.6 67.8 67.8 67.4 Business and professional.............................. 9.0 3.3 11.1 24.0 45.2 47.3 49.1 50.5 51.4 50.6 50.6 51.2 51.7 52.0 Farm................................................................... 6.2 2.6 6.4 13.5 16.1 14.8 15.0 16.4 16.2 16.6 17.0 16.5 16.1 15.3 Rental income of persons.................................... 5.4 2.0 3.5 9.4 20.0 21.1 21.3 22.0 22.7 22.3 22.5 22.6 22.7 23.0 Corporate profits and inventory valuation adjustment.......................................................... 10.5 -1.2 15.2 37.7 82.4 78.7 85.4 85.8 76.8 82.0 76.7 77.5 78.4 74.5 Profits before tax................................................ 10.0 1.0 17.7 42.6 84.2 79.8 88.7 91.2 81.6 88.5 82.6 82.0 84.4 77.5 Profits tax liability....................................... 1.4 .5 7.6 17.8 34.3 33.2 40.6 42.7 37.6 41.4 38.0 38.1 38.9 35.4 Profits after tax............................................... 8.6 .4 10.1 24.9 49.9 46.6 48.2 48.5 44.0 47.1 44.6 43.9 45.4 42.1 Dividends................................................... 5.8 2.0 4.4 8.8 20.8 21.4 23.3 24.7 25.2 25.2 25.2 25.1 25.4 25.1 Undistributed profits.............................. 2.8 -1.6 5.7 16.0 29.1 25.3 24.9 23.9 18.8 21.9 19.4 18.8 20.0 16.9 Inventory valuation adjustment................... .5 -2.1 -2.5 -5.0 -1.8 -1.1 -3.3 -5.4 -4.8 -6.5 -5.8 -4.5 -5.9 -3.0 Net interest............................................................ 4.7 4.1 3.2 2.0 21.4 24.4 27.8 30.7 33.5 31.7 32.4 33.1 33.8 34.5 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

APRIL 1971 o 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 1966 1967 1968 1969 1970® IV I II III IV® Gross national product........................................... 103.1 55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 951.7 959.5 971.1 985.5 989.9 Less: Capital consumption allowances........... 7.9 7.0 8.2 18.3 63.9 68.9 74.0 78.9 84.3 80.7 82.1 83.6 85.0 86.5 Indirect business tax and nontax lia­ bility ........................................................... 7.0 7.1 11.3 23.3 65.7 70.4 78.1 85.2 92.1 87.7 89.3 91.1 93.3 94.5 Business transfer payments..................... .6 .7 .5 .8 3.0 3.1 3.3 3.5 3.6 3.5 3.6 3.6 3.6 3.7 Statistical discrepancy............................... .7 .6 .4 1.5 -1.0 -.7 -2.4 -4.7 -2.1 -4.3 -5.4 -3.1 -1.1 1.2 Plus: Subsidies less current surplus of gov­ ernment enterprises............................... -.1 .1 .2 2.3 1.4 .7 1.0 1.8 1.2 1.6 1.5 1.8 2.1 Equals: National income........................................ 86.8 40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.4 785.2 791.5 797.4 806.6 806.0 Less: Corporate profits and inventory valu­ ation adjustment.................................... 10.5 -1.2 15.2 37.7 82.4 78.7 85.4 85.8 76.8 82.0 76.7 77.5 78.4 74.5 Contributions for social insurance----- .2 .3 2.8 6.9 38.0 42.4 47.1 53.6 57.1 55.1 56.0 56.7 57.6 58.1 Excess of wage accruals over disburse­ ments.......................................................... 2.5 -2.1 -.4 Plus: Government transfer payments............. .9 1.5 2.6 14.3 41.1 48.7 55.7 61.6 73.9 63.4 66.3 75.8 75.1 78.5 Net interest paid by government and consumers................................................. 2.5 1.6 2.2 7.2 22.2 23.6 26.3 29.0 31.8 30.2 31.0 31.4 32.2 32.5 Dividends...................................................... 5.8 2.0 4.4 8.8 20.8 21.4 23.3 24.7 25.2 25.2 25.2 25.1 25.4 25.1 Business transfer payments.................... .6 .7 .5 .8 3.0 3.1 3.3 3.5 3.6 3.5 3.6 3.6 3.6 3.7 Equals: Personal income...................................... 85.9 47.0 96.0 227.6 587.2 629.3 688.7 748.9 801.0 770.5 782.3 801.3 807.2 813.3 Less: Personal tax and nontax payments___ 2.6 1.5 3.3 20.7 75.4 83.0 97.5 117.3 116.3 119.9 117.0 117.7 114.2 116.1 Equals: Disposable personal income.................. 83.3 45.5 92.7 206.9 5119 546.3 591.2 6316 684.8 650.6 665.3 683.6 693.0 697.2 Less: Personal outlays......................................... 79.1 46.5 81.7 193.9 479.3 506.0 550.8 593.9 634.6 609.6 620.5 632.1 640.2 645.5 Personal consumption expenditures. 77.2 45.8 80.6 191.0 466.3 492.1 535.8 577.5 616.7 592.6 603.1 614.4 622.1 627.0 Consumer interest payments.............. 1.5 .5 .9 2.4 12.4 13.2 14.3 15.7 17.0 16.1 16.4 16.8 17.2 17.5 Personal transfer payments to for­ eigners.................................................... .3 .2 .2 .5 .6 .7 .7 .8 .9 .8 .9 1.0 1.0 .9 Equals: Personal saving......................................... 4.2 -.9 11.0 13.1 32.5 40.4 40.4 37.6 50.2 41.1 44.8 51.5 52.7 51.8 Disposable personal income in constant (1958) dollars...................................................................... 150.6 112.2 190.3 249.6 458.9 477.5 499.0 5115 529.8 517.8 522.9 532.0 534.2 530.0 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) 1970 1971 Item 1969 1970 Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.25 Total personal income. 748.9 801.0 781.5 787.6 806.0 799.7 798.2 803.3 806.4 811.9 809.9 812.6 817.5 826.7 828.9 Wage and salary disbursements.......... 509.0 540.1 531.1 535.0 539.9 540.5 538.1 541.5 543.2 546.6 541.8 544.1 549.8 557.8 559.4 Commodity-producing industries.. 197.5 201.2 202.0 203.9 202.3 200.9 201.3 202.1 202.0 201.5 196.8 196.8 202.3 203.0 202.3 Manufacturing only....................... 157.5 158.9 160.0 161.3 160.0 159.2 159.5 160.1 159.6 159.5 154.3 153.6 158.9 160.2 160.0 Distributive industries....................... 119.8 128.4 125.7 126.7 126.0 127.2 127.9 129.1 129.7 130.2 130.6 131.4 130.5 133.4 134.0 Service industries................................ 87.7 96.6 94.1 94.6 95.1 95.5 95.7 96.8 97.3 97.9 98.8 99. 100.4 102.2 103.0 Government......................................... 104.1 114.0 109.3 109.8 116.5 116.9 113.2 113.5 114.2 117.0 115.6 116.1 116.6 119.2 120.1 Other labor income. 27.6 30.4 29.3 29.6 29.8 30.0 30.3 30.6 30. 31.1 31.3 31.5 31.7 31.9 32.1 Proprietors’ income................ 66 67.6 67.6 67.9 67.9 67.8 67.7 67.8 67.8 67.8 67.6 67.3 67.1 67.1 66.9 Business and professional. 50.5 51.4 50.6 50.7 51.0 51.3 51.5 51.6 51.7 51.8 51.9 52.0 52.1 52.2 52.1 Farm...................................... 16.4 16.2 17.0 17.2 16.9 16.5 16.2 16.2 16.1 16.0 15.7 15.3 15.0 14.9 14.8 Rental income.................... 22.0 22.7 22.5 22.6 22.6 22.6 22.7 22.7 22.7 22.8 22.9 23.0 23.1 23.2 22.8 Dividends............................ 24.7 25.2 25.2 25.2 25.2 25.3 24.7 25.2 25.3 25.5 25.6 25.7 24.1 25.9 26.0 Personal interest income. 59.7 65.2 63.4 63.7 64.2 64.5 64.8 65.3 66.0 66.8 67.0 67.1 67.1 67.5 68.0 Transfer payments............ 65.1 77.6 69.7 71.1 84.1 76.6 77.6 78.1 78.6 79.6 81.7 81.9 82.9 83.8 84.4 Less: Personal contributions for social insurance.................................................. 26.0 27.8 27.3 27.5 27.7 27.7 27.6 27.8 28.0 28.2 28.0 28.1 28.4 30.6 30.6 Nonagricultural income. 726.7 778.6 758.4 764.3 783.0 777.0 775.7 780.9 784.0 789.7 787.9 791.0 796.2 805.5 807.6 Agriculture income......... 22.2 22.4 23.1 23.3 23.0 22.7 22.4 22.4 22.3 22.2 21.9 21.6 21.3 21.2 21.3 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 □ APRIL 1971 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 1966 1967 1968 1969 1970 IV I II III IV I II III IV Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors.................... 68.5 83.5 96.9 90.4 95.4 90.7 92.5 93.6 88.4 86.8 80.9 102.9 92.2 105.7 1 2 U.S. Government................................ 3.5 13.0 13.4 -3.6 12.7 -7.0 -5.4 -9.5 -.7 1.2 2.7 16.2 12.3 19.6 2 3 Public debt securities...................... 2.3 8.9 10.3 -1.3 12.8 -8.4 -5.8 -8.8 4.9 4.9 3.2 18.2 11.6 18.4 3 4 Budget agency issues....................... 1.2 4.1 3.1 -2.4 -.1 1.4 .5 -.7 -5.6 -3.7 -.5 -2.0 .8 1.2 4 5 All other nonfinancial sectors.. 64.9 70.5 83.5 94.1 82.7 97.7 97.9 103.0 89.1 85.7 78.2 86.7 79.9 86.1 5 6 Capital market instruments........... 39.9 48.9 50.2 53.9 65.4 58.3 57.6 55.1 51.2 51.7 51.6 60.7 62.9 86.4 6 7 Corporate equity shares............. .9 2.4 -.7 4.8 6.6 -2.1 .3 3.6 6.0 9.2 5.9 6.0 5.4 9.1 7 8 Debt capital instruments........... 39.0 46.6 50.9 49.1 58.8 60.4 57.3 51.5 45.2 42.5 45.6 54.7 57.5 77.3 8 9 State and local govt, sec........ 5.7 8.7 9.6 8.1 11.8 14.2 12.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 9 10 Corporate and fgn. bonds... 11.0 15.9 14.0 13.1 22.4 16.3 15.8 13.3 12.1 11.1 15.0 22.4 22.3 29.9 10 11 Mortgages................................. 22.3 22.0 27.3 27.9 24.6 29.9 28.7 28.8 27.5 26.7 21.8 22.1 26.3 28.1 11 12 Home mortgages................... 11.4 11.6 15.2 15.7 12.7 16.1 16.5 16.6 15.7 13.9 10.8 11.1 14.3 14.6 12 13 Other residential.................... 3.1 3.6 3.5 4.8 5.6 3.9 4.2 4.7 4.8 5.6 4.6 5.4 6.2 6.3 13 14 Commercial............................. 5.7 4.7 6.6 5.5 4.5 8.0 5.9 5.1 5.3 5.8 4.8 4.2 4.1 5.0 14 15 Farm......................................... 2.1 2.1 2.1 1.9 1.7 1.9 2.2 2.3 1.8 1.5 1.5 1.4 1.7 2.2 15 16 Other private credit......................... 25.0 21.6 33.3 40.2 17.3 39.4 40.3 47.9 38.0 33.9 26.6 26.0 16.9 -.3 16 17 Bank loans n.e.c........................... 10.3 9.6 13.4 15.7 .7 20.9 17.0 19.1 11.7 14.2 7.3 8.3 2.1 -14.6 17 18 Consumer credit.......................... 7.2 4.6 11.1 9.3 4.3 12.1 10.2 10.8 8.9 7.5 4.9 6.1 6.1 .3 . 18 19 Open market paper..................... 1.0 2.1 1.6 3.3 3.8 .7 4.9 4.7 2.7 1.0 4.9 2.2 .5 7.5 19 20 6.4 5.2 7.3 11.8 8.4 5.7 8.1 13.3 14.6 11.2 9.5 9.4 8.3 6.6 20 21 By borrowing sector—................... 64.9 70.5 83.5 94.1 82.7 97.7 97.9 103.0 89.1 85.7 78.2 86.7 79.9 86.1 21 22 Foreign.............................................. 1.5 4.1 3.0 3.7 2.8 2.8 4.0 6.0 2.3 2.4 2.6 1.7 2.6 4.5 22 23 State and local governments......... 6.4 8.8 9.9 8.5 12.2 14.6 13.4 9.7 5.8 5.1 9.4 10.4 9.2 19.7 23 24 Households....................................... 23.2 19.7 31.8 32.2 21.3 34.7 33.0 36.0 31.5 28.2 24.5 20.6 22.7 17.5 24 25 Nonfinancial business..................... 33.8 37.9 38.8 49.7 46.3 45.6 47.4 51.3 49.4 49.9 41.6 54.1 45.4 44.4 25 26 Corporate......................................... 24.9 29.3 30.3 39.1 37.9 35.0 37.1 41.1 37.4 41.0 34.9 45.0 34.4 37.3 26 27 Nonfarm noncorporate................. 5.5 5.0 5.8 7.4 5.1 8.0 7.1 6.6 8.7 6.4 3.7 5.4 7.6 3.9 27 28 Farm.................................................. 3.5 3.5 2.7 3.2 3.3 2.6 3.3 3.6 3.3 2.5 3.0 3.7 3.3 3.2 28 Funds advanced directly in credit markets 1 Total funds raised................................ 68.5 83.5 96.9 90.4 95.4 90.7 92.5 93.6 88.4 86.8 80.9 102.9 92.2 105.7 1 Advanced directly by— 2 U.S. Government............................ 4.9 4.6 4.9 2.5 3.3 3.1 2.5 1.7 3.7 2.3 3.9 3.3 3.2 2.6 2 3 U.S. Govt, credit agencies, net... .3 .5 -.2 .2 1.2 -.8 .4 -.8 -.1 1.5 -.7 1.5 1.2 2.9 3 4 Funds advanced........................... 5.1 -.1 3.2 9.0 8.8 2.3 4.0 7.6 10.5 14.1 13.7 6.8 7.5 7.3 4 5 Less funds raised in cr. mkt___ 4.8 -.6 3.5 8.8 7.6 3.1 3.6 8.4 10.6 12.5 14.4 5.4 6.3 4.4 5 6 Federal Reserve System................. 3.5 4.8 3.7 4.2 5.0 -4.4 4.1 4.0 -.5 9.3 1.2 5.5 7.7 5.5 6 7 Commercial banks, net.................. 16.7 36.6 39.5 12.2 31.1 36.2 7.9 29.3 -.9 12.1 .9 23.9 65.3 34.4 7 8 Funds advanced........................... 16.8 36.9 39.7 16.5 29.3 36.1 8.8 33.8 4.2 18.9 10.0 28.0 53.8 25.5 8 9 Less funds raised......................... .1 .2 .2 4.3 -1.8 -.1 .9 4.5 5.0 6.8 9.1 4.1 -11.6 -8.9 9 10 Private nonbank finance................ 25.9 34.4 34.2 30.4 37.3 38.3 31.1 39.8 26.1 24.8 25.1 41.4 39.9 42.7 10 11 Savings institutions, net............. 7.8 16.8 14.6 10.4 14.9 16.4 15.9 13.3 6.8 5.6 4.7 15.3 18.1 21.7 11 12 Insurance...................................... 19.3 18.7 22.0 21.8 23.3 25.2 19.8 27.5 20.6 19.5 22.7 26.1 22.3 22.1 12 13 Finance n.e.c., net....................... -1.3 -1.1 -2.4 -1.8 -.9 -3.2 -4.6 -1.0 -1.3 -.2 -2.3 .1 -.5 -1.1 13 14 Foreign.............................................. -1.8 2.8 2.5 1.3 10.0 11.9 .2 1.0 5.1 -1.1 9.4 9.4 4.9 16.3 14 15 Private domestic nonfinancial----- 19.1 -.2 12.3 39.5 7.5 6.5 46.5 18.6 55.0 37.9 41.0 17.9 -30.1 1.3 15 16 Business......................................... 3.6 -.2 7.4 13.8 1.9 2.0 15.8 14.1 18.1 7.0 15.2 13.4 -26.9 6.1 16 1 1 8 7 H St o a u te s e a h n o d l d lo s c .. a ... l . . g .. o ... v .. e .. r .. n .. m .... e .. n .. t .. s . . .. . .. . 1 3 1 . . 4 9 2.1 * 5. . 8 4 1 6 8 . . 1 0 -2 7 . . 7 0 4 3 . . 1 7 1 8 9 . . 1 8 2 1 . . 9 5 2 7 5 . .9 7 2 5 4. . 9 6 - 2 1 3 . . 9 9 -5 7 . . 0 4 -7 4 . . 9 4 -7 4 . . 5 1 1 1 8 7 19 Less net security credit............... -.2 2.2 1.4 -1.6 -1.2 3.3 -2.7 -.2 -3.2 -.4 -3.8 -2.1 -.3 1.4 19 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors.................... 68.5 83.5 96.9 90.4 95.4 90.7 92.5 93.6 88.4 86.8 80.9 102.9 92.2 105.7 1 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total.................................................. 42.8 51.3 60.8 44.2 69.3 58.1 58.9 26.8 47.1 43.8 54.6 72.2 67.7 82.9 2 3 Deposits........................................ 23.7 51.5 48.5 4.7 61.8 51.6 12.5 8.2 -7.9 5.9 13.6 54.3 97.8 81.6 3 4 Demand dep. and currency.. 4.0 12.4 14.8 7.1 5.5 13.1 5.9 6.6 7.6 8.2 1.5 7.0 6.7 6.6 4 5 Time and svgs. accounts.... 19.7 39.1 33.7 -2.4 56.4 38.5 6.6 1.6 -15.5 -2.3 12.1 47.3 91.2 75.0 5 6 At commercial banks. . . 12.5 22.5 20.8 -10.5 39.8 23.9 -6.8 -7.4 -21.3 -6.4 7.3 32.0 69.5 50.1 6 7 At savings instit................. 7.2 16.6 12.9 8.1 16.6 14.6 13.4 9.0 5.8 4.2 4.7 15.2 21.7 24.8 7 8 19.1 -.2 12.3 39.5 7.5 6.5 46.5 18.6 55.0 37.9 41.0 17.9 -30.1 1.3 8 9 U.S. Govt, securities................ 8.5 -1.7 7.7 15.0 -6.8 3.0 21.8 .9 23.2 14.1 6.0 -8.1 — 11.7 -13.2 9 10 Pvt. credit market instr........... 11.4 7.8 13.4 26.9 14.2 15.9 27.2 23.6 29.4 27.3 38.1 23.9 -19.9 14.7 10 11 Less security debt................... -.2 2.2 1.4 -1.6 -1.2 3.3 -2.7 -.2 -3.2 -.4 -3.8 -2.1 -.3 1.4 11 Other sources: 12 Foreign funds................................... .7 4.6 4.3 9.6 2.3 8.2 13.8 14.8 10.4 -.6 10V8 2.6 -4.5 .1 12 13 At banks........................................ 2.5 1.7 1.8 8.3 -7.8 -3.7 13.7 13.8 5.3 .5 1.3 -6.8 -9.4 -16.1 13 14 Direct............................................ -1.8 2.8 2.5 1.3 10.0 11.9 .2 1.0 5.1 -1.1 9.4 9.4 4.9 16.3 14 15 Chg. in U.S. Govt, cash bal.......... -.4 1.2 -1.1 .4 2.4 -6.8 -5.8 1.7 1.6 3.9 1.0 1.7 1.4 5.7 15 16 U.S. Government loans................. 4.9 4.6 4.9 2.5 3.3 3.1 2.5 1.7 3.7 2.3 3.9 3.3 3.2 2.6 16 17 Pvt. insur. and pension res............ 16.7 17.5 18.5 18.7 20.0 20.0 14.9 22.4 18.7 18.9 18.7 21.4 19.8 20.2 17 18 Sources n.e.c..................................... 3.8 4.3 9.5 15.0 -1.9 8.2 8.2 26.2 6.8 18.6 -8.0 1.7 4.5 -5.9 18 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ FLOW OF FUNDS A 71 PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1968 1969 1970 Transaction category, or sector 1966 1967 1968 1969 1970 IV 1 II III IV I II III IV Demand deposits and currency 1 Net incr. in banking system liability. 2.6 14.8 14.8 8.5 8.9 7.1 - 1.0 10.3 11.0 13.2 5.0 8.9 8.6 13.2 2 U.S. Government deposits.......... -.4 1.1 - 1.2 .6 2.3 -6.9 -5.7 1.7 1.9 4.2 1.1 1.6 .8 5.6 3 Money supply................................ 3.0 13.7 16.0 7.9 6.6 14.0 4.7 8.6 9.1 9.0 3.9 7.3 7.8 7.6 4 Domestic sectors....................... 3.9 13.4 15.7 7.6 6.4 13.6 4.8 8.0 8.5 9.0 2.5 7.7 8.3 7.0 5 Households............................. 3.1 9.4 11.1 5.9 3.3 15.5 -.9 10.2 9.5 5.1 5.8 5.7 * 1.7 6 Nonfinancial business.......... .7 .8 1.8 -.8 1.1 -5.4 3.9 -5.6 -4.3 3.0 -3.3 .9 5.8 .9 7 State and local governments -.1 - 1.0 .7 3.2 .9 .6 2.5 3.4 3.9 2.9 -.4 .7 .7 2.7 8 Financial sectors................... -.1 1.0 .9 .5 .9 .5 - 1.1 1.4 .9 .8 1.0 .6 1.6 .4 9 Mail float................................ .3 3.2 1.2 - 1.2 .1 2.6 .3 -1.3 -1.5 - 2.8 -.6 -.3 .2 1.2 10 Rest of the world...................... - 1.0 .3 .3 .3 .3 .4 -.1 .6 .6 1.4 -.4 -.5 .5 Time and savings accounts 1 Net increase—Total........................... 20.2 40.8 33.3 — 1.6 55.4 38.0 5.9 -.2 -15.4 3.4 17.0 44.5 88.8 71.2 2 At commercial banks—Total... 13.3 23.8 20.6 -9.7 38.0 24.2 -7.6 -9.0 -21.2 - 1.1 11.5 28.6 66.9 45.1 3 Corporate business................... -.7 2.9 1.9 -9.8 12.8 3.9 -14.4 -9.5 -11.0 -4.2 .5 6.1 32.3 12.2 4 State and local governments.. 1.3 2.4 3.2 -5.9 9.1 3.5 -3.7 -5.0 -10.3 -4.6 6.5 10.2 11.5 8.3 5 Foreign........................................ .8 1.2 -.3 1.0 -1.9 .2 -.5 -1.4 .4 5.7 4.3 -3.5 -3.2 -5.1 6 Households................................. 11.9 17.1 15.7 5.2 17.9 16.5 11.3 7.1 * 2.4 .4 15.7 25.7 29.6 7 At savings institutions................. 7.0 17.0 12.8 8.1 17.3 13.9 13.5 5.7 4.5 5.5 15.9 21.8 26.1 Liabilities— 8 Savings and loan assns......... 3.6 10.6 7.5 4.1 11.2 8.1 8.0 4 2.9 .7 2.2 9.8 15.6 17.0 9 Mutual savings banks.......... 2.6 5.1 4.2 2.6 4.5 4.5 3.8 2.7 1.5 2.2 1.6 4.4 4.7 7.3 10 Credit unions......................... 1.2 1.1 1.4 1.7 1.3 1.6 1.2 1.3 1.5 1.6 1.7 1.5 1.9 Assets 11 Households............................. 7.2 16.6 12.9 8.1 16.6 14.6 13.4 9.0 5.8 4.2 4.7 15.2 21.7 24.8 11 12 Cr. union deps. at S & L’s.. -.2 .3 -.1 .7 -.7 .1 -.2 -.1 .3 .6 .2 1.3 12 U.S. Government securities 1 Total net issues........................................ 8.7 12.5 16.7 5.5 20.3 -4.2 -.5 -1.0 10.0 13.8 17.2 21.6 18.7 23.9 1 2 Household savings bonds.............. .6 1.0 .4 -.4 .2 .7 -.4 -.4 -.8 .1 -.9 -.2 .5 1.3 2 3 Direct excluding savings bonds... 1.8 7.9 9.9 -.9 12.7 -9.0 -5.4 -8.4 5.6 4.8 4.1 18.4 11.0 17.2 3 4 Budget agency issues........................ * .1 1.5 -.4 1.2 2.6 .8 -1.3 -.8 -.2 2.1 .2 1.0 1.3 4 5 Sponsored agency issues.................. 5.1 -.6 3.2 9.1 7.6 2.7 4.8 8.4 10.6 12.5 14.4 5.4 6.3 4.4 5 6 Loan participations........................... 1.3 4.0 1.7 -1.9 -1.3 -1.2 -.3 .7 -4.8 -3.3 -2.6 -2.2 -.1 -.2 6 7 Net acquisitions, by sector.................. 8.7 12.5 16.7 5.5 20.3 -4.2 -.5 -1.0 10.0 13.8 17.2 21.6 18.7 23.9 7 8 U.S. Government (agency sec.)... 1.3 -.1 .1 -1.3 .1 -1.0 -1.1 -2.2 -.8 -1.0 .1 * * .3 8 9 Sponsored credit agencies.............. 1.0 * -.1 -.2 1.5 .1 -2.0 .3 -.5 1.2 2.0 -.6 1.4 3.2 9 10 Direct marketable......................... .3 .9 -.1 -.5 1.6 .1 -2.0 .3 -.8 .4 2.8 -.8 1.6 3.1 10 11 FHLB special issue....................... . 6 -.9 .3 -.2 * * .3 .8 -.8 .2 -.2 .1 11 12 Federal Reserve System.................. 3.5 4.8 3.8 4.2 5.0 -4.3 4.0 4.2 -.4 9.2 1.1 5.4 7.8 5.6 12 13 Foreign................................................. -2.4 2.1 -.5 -1.8 8.4 6.8 -4.5 -1.8 2.7 -3.7 8.0 8.1 4.8 12.8 13 14 Commercial banks............................ -3.6 9.3 3.4 -9.5 8.2 -4.1 -16.2 -7.2 -9.5 -5.2 .6 7.3 15.5 9.5 14 15 Direct................................................ -3.4 6.3 2.2 -9.3 5.2 -5.0 -14.4 -8.8 -7.6 -6.2 -.6 7.3 11.5 2.8 15 16 Agency issues................................. -.2 3.0 1.3 -.3 3.0 .9 -1.8 1.6 -1.9 1.0 1.3 -.1 4.0 6.7 16 17 Nonbank finance............................... .4 -1.9 2.2 -.8 3.9 -4.8 -2.4 4.8 -4.7 -.8 -.6 9.5 .9 5.8 17 18 Direct................................................ -.2 -2.2 .4 -2.4 1.9 -6.5 -4.4 2.7 -7.3 -.6 -3.2 7.3 -2.0 5.6 18 19 Agency issues................................. .5 .3 1.8 1.6 2.0 1.7 2.0 2.0 2.6 -.2 2.6 2.2 2.9 .2 19 20 Pvt. domestic nonfin......................... 8.5 -1.7 7.7 15.0 -6.8 3.0 21.8 .9 23.2 14.1 6.0 -8.1 -11.7 -13.2 20 21 Savings bonds—Households... .6 1.0 .4 -.4 .2 .7 -.4 -.4 -.8 .1 -.9 -.2 .5 1.3 21 22 Direct excl. savings bonds......... 3.3 -3.0 4.1 8.7 -9.4 -.1 16.1 -5.1 18.8 5.0 -3.2 -9.2 -12.5 -12.7 22 23 Agency issues................................. 4.7 .4 3.2 6.7 2.5 2.4 6.2 6.4 5.2 9.1 10.1 1.3 .3 -1.8 23 Private securities 1 Total net issues, by sector............. 18.5 28.2 23.9 27.7 43.0 29.3 30.4 28.8 25.1 26.3 31.3 41.0 39.4 60.2 1 2 State and local governments... 5.7 8.7 9.6 8.1 11.8 14.2 12.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 2 3 Nonfinancial corporations........ 11.4 17.0 12.1 16.4 27.9 12.2 14.7 14.9 16.1 19.8 20.2 28.9 25.7 37.0 3 4 Financs companies..................... ,.8 1.0 .8 1.6 2.1 1.0 1.4 2.2 1.4 1.3 1.3 2.3 2.8 1.9 4 5 Commercial banks..................... J.l .2 .2 .1 * -.1 .1 .3 * -.1 .2 * * 5 6 Rest of the world........................ .5 1.3 1.3 1.5 1.1 2.0 1.5 2.0 2.0 .5 .7 -.4 2.1 2.0 6 7 Net purchases.................................., 18.5 28.2 23.9 27.7 43.0 29.3 30.4 28.8 25.1 26.3 31.3 41.0 39.4 60.2 7 8 Households................................. 3.2 -1.8 -1.2 2.7 9.9 3.8 3.4 -2.0 4.7 4.8 6.2 8.2 9.5 15.7 8 9 Nonfinancial corporations____ 1.0 -.2 -1.1 5.1 .4 -.9 6.7 3.1 5.5 5.0 .6 2.0 -2.4 1.2 9 10 State and local governments.. 1.1 1.9 -.4 2.6 .4 -1.8 4.9 3.0 .9 1.4 .9 1.4 -.8 .1 10 11 Commercial banks.................... 1.9 9.8 8.9 .3 11.7 13.6 1.6 2-4 -1.1 -1.7 5.0 9.7 12.5 19.5 11 12 Mutual savings banks.............. .3 2.3 1.6 .6 1.9 1.5 1.1 1.0 * .2 1.2 2.0 1.2 3.1 12 13 Insurance and pension funds.. 12.9 16.6 17.6 16.8 17.5 19.8 16.3 20.5 15.0 15.4 17.1 20.7 13.2 19.0 13 14 Finance n.e.c............................... -2.2 -.9 -3.6 -2.5 * -10.3 -7.6 * -.6 -1.7 -.3 -3.6 4.0 -.1 14 15 Security brokers and dealers .1 .2 -.9 .5 1.3 -9.2 .2 1.1 2.8 -2.2 .5 .6 5.5 -1.3 15 16 Investment companies, net.. -2.4 -1.1 -2.8 -3.0 -1.4 -1.2 -7.8 -1.1 -3.4 .4 -.8 -4.2 -1.6 1.1 16 17 Portfolio purchases........... 1.4 1.5 1.9 2.7 1.8 4.3 -.2 3.6 2.7 4.6 1.3 -1.0 2.4 4.5 17 18 Net issues of own shares. 3.7 2.6 4.7 5.6 3.2 5.5 7.6 4.7 6.1 4.2 2.1 3.2 3.9 3.4 18 19 Rest of the world...................... .3 .6 2.3 2.1 1.2 3.7 3.9 .9 .7 2.9 .6 .5 2.1 1.6 19 Bank loans n.e.c. 1 Total net borrowing........ 9.0 7.5 15.7 17.8 .6 23.0 18.0 24.0 11.1 17.6 4.9 9.6 4.9 -17.0 2 Households.................. .4 2.1 3.1 2.4 .3 4.3 2.9 4.2 .9 1.5 2.3 -1.1 .9 -.9 3 Nonfinancial business 10.1 7.7 10.6 13.5 .9 17.5 13.9 14.4 12.3 12.8 4.3 9.7 1.1 -11.5 Rest of the world -.2 -.2 -.3 -.2 -.4 -.9 .2 .6 -1.5 -.1 .6 -.3 .1 -2.2 Financial sectors -1.3 -2.1 2.3 2.1 -.2 2.1 .9 4.9 -.6 3.4 -2.3 1.2 2.8 -2.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 72 U.S. BALANCE OF PAYMENTS □ APRIL 1971 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1969 1970 1968 1969 1970® IV r IIr IIIr IV® Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total1 50,622 55,514 62,962 14,767 15,364 15,798 15,969 15,831 Merchandise............................................. 33,588 36,473 42,041 9,890 10,252 10,586 10,700 10,503 Military sales........................................... 1,395 1,515 1,479 352 256 430 339 454 Transportation........................................ 2,969 3,131 3,665 803 877 926 950 912 Travel.......................................................... 1,775 2,058 2,318 518 560 576 589 593 Investment income receipts, private. 6,922 7,906 8,706 2,083 2,259 2,066 2,170 2,211 Investment income receipts, Govt.. . 765 932 911 231 240 241 224 206 Other services........................................... 3,208 3,498 3,844 890 920 973 997 952 Imports of goods and services—Total. -48,129 -53,564 -59,291 -14,075 -14,518 -14,759 -14,969 -15,047 Merchandise........................................... -32,964 -35,835 -39,856 -9,404 -9,729 -9,829 -9,987 -10,311 Military expenditures......................... -4,535 -4,850 -4,837 -1,245 -1,178 -1,255 -1,210 -1,195 Transportation...................................... -3,269 -3,608 -4,032 -967 -978 -979 -1,073 -1,001 Travel....................................................... -3,022 -3,390 -3,916 -840 -925 -988 -1,026 -977 Investment income payments........... -2,933 -4,463 -5,109 -1,247 -1,343 -1,320 -1,287 -1,160 Other services........................................ -1,406 -1,419 -1,540 -372 -365 -388 -386 -403 Balance on goods and services1 2,493 1,949 3,672 692 846 1,039 1,000 784 Remittances and pensions......... -1,121 -1,190 -1,387 -309 -328 -360 -364 -336 1. Balance on goods, services, remittances and pen­ sions..................................................................................... 1,372 759 2,285 383 518 679 636 448 2. U.S. Govt, grants and capital flow, net........................ -3,975 -3,828 -3,235 -870 -855 -725 -804 -852 Grants,2 loans, and net change in foreign cur­ rency holdings, and short-term claims................ -5,359 -5,032 -4,954 -1,183 -1,278 -1,237 -1,192 -1,248 Scheduled repayments on U.S. Govt, loans.......... 1,114 1,291 1,475 324 335 398 386 356 Nonscheduled repayments and selloffs.................... 269 -87 244 3-11 114 2 40 3. U.S. private capital flow, net........................................... -5,412 -5,233 -6,351 -889 -1,711 -1,944 -1,176 -1,518 Direct investments.......................................................... -3,209 -3,070 -3,967 -276 -1,411 -1,434 -711 -410 Foreign securities............................................................ -1,254 -1,494 -878 -69 -133 66 -549 -261 Other long-term claims reported by— Banks.............................................................................. 358 330 201 35 24 61 23 93 Others............................................................................ -220 -424 -589 -249 -381 -13 -132 -63 Short-term claims reported by— Banks.............................................................................. -105 -871 -1,084 -371 108 -538 118 -772 Others............................................................................. -982 296 -34 41 82 -86 75 -105 4. Foreign capital flow, net, excluding change in liquid assets in the United States................................... 8,701 4,131 3,861 1,635 585 1,317 1,064 897 Long-term investments............................................. 6,029 3,959 3,060 1,276 788 612 867 794 Short-term claims....................................................... 759 76 704 -19 93 165 211 235 Nonliquid claims on U.S. Govt, associated with— Military contracts..................................................... -105 156 -583 229 -20 -254 -66 -244 U.S. Govt, grants and capital............................... 2 -16 -30 * -9 -17 -3 * Other specific transactions...................................... 6 -2 -12 -1 -25 11 -20 22 Other nonconvertible, nonmarketable, medium term U.S. Govt, securities4.................................... 2,010 -41 723 150 -242 800 75 90 5. Allocation of Special Drawing Rights. 867 217 217 217 216 6. Errors and unrecorded transactions... -514 -2,841 -1,274 162 -205 -779 -535 245 Balances A. Balance on liquidity basis 5 Seasonally adjusted (Equals sum of items 1-4+6.) 171 -7,012 -4,715 420 -1,666 -1,452 -817 -780 Less: Net seasonal adjustments............................. -624 -113 -20 822 -689 Before seasonal adjustment...................................... 171 -7,012 -4,715 1,044 -1,553 -1,432 -1,639 -91 B. Balance on basis of official reserve transactions5 Balance A, seasonally adjusted................................... 171 -7,012 -4,715 420 -1,666 -1,452 -817 -780 Plus: Seasonally adjusted change in liquid assets in the United States of— Commercial banks abroad...................................... 3,387 9,217 -6,511 149 -1,862 -111 -1,396 -3,142 Other private residents of foreign countries. .. 375 -441 92 -131 -152 192 -148 200 International and regional organizations other than IMF................................................................ 48 -60 177 -66 142 -125 83 77 Less: Change in certain nonliquid liabilities to foreign central banks and govts............................. 2,340 -996 -271 -142 -420 501 -246 -106 Balance B, seasonally adjusted... 1,641 2,700 -10,686 514 -3,118 -1,997 -2,032 -3,539 Less: Net seasonal adjustments. -311 -285 72 580 -367 Before seasonal adjustment......... 1,641 2,700 -10,686 825 -2,833 -2,069 -2,612 -3,172 MEMO—Balances including SDR allocation Balance A, Seasonally adjusted6.................... -1,449 -1,235 -600 -564 Balance A, Before seasonal adjustment.... -3,848 -686 -1,432 -1,639 -91 Balance B, Seasonally adjusted....................... -2,901 -1,780 -1,815 -3,323 Balance B, Before seasonal adjustment......... -9,819 -1,966 -2,069 -2,612 -3,172 For notes see end of table, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 73 1. U.S. BALANCE OF PAYMENTS— Continued (In millions of dollars) 1969 1970 Item 1968 1969 1970 p IV I ' II >■ III r IV p Transactions by which balances were settled—Not seasonally adjusted -171 7,012 54,715 -1,044 51,553 1,432 1,639 91 Change in U.S. official reserve assets (in­ crease, —)...................................................................... -880 -1,187 3,344 -154 481 1,022 801 1,040 Gold................................................................................. 1,173 -967 787 -695 SDR’s............................................................................. 16 1 1 14 395 422 -37 — 34 140 IMF gold tranche position...................................... -870 -1,034 389 -542 -253 227 406 9 Convertible currencies............................................... -1,183 814 2,152 1,083 831 818 34 469 Change in liquid liabilities to all foreign accounts.. 709 8,199 1,371 -890 1,072 410 838 -949 Foreign central banks and govts.: Convertible nonmarketable U.S. Govt, securities?............................................................. -10 -163 -126 -212 -126 * Marketable U.S. Govt, bonds and notes7... -379 -79 -39 -67 -3 17 20 -73 Deposits, short-term U.S. Govt, securities, etc............................................................................ -2,709 -264 8,231 -227 2,902 522 2,452 2,355 IMF (gold deposits)................................................... -3 -11 — 453 -9 -423 -21 Commercial banks abroad...................................... 3,387 9,217 -6,511 -187 -1,682 -196 -1,146 -3,487 Other private residents of foreign countries.... 375 -441 92 -131 -152 192 -148 200 International and regional organizations other than IMF.................................................................. 48 -60 177 -66 142 -125 83 77 -1,641 -2,700 510,686 -825 52,833 2,069 2,612 3,172 Change in U.S. official reserve assets (in­ crease, —)...................................................................... -880 -1,187 3,344 -154 481 1,022 801 1,040 Change in liquid liabilities to foreign central banks and govts., and IMF (see detail above under A.)........................................................................ -3,101 -517 7,613 -506 2,764 539 2,049 2,261 Change in certain nonliquid liabilities to foreign central banks and govts, of — U.S. private organizations.................................. 534 -834 -806 -206 -154 -235 -233 -184 U.S. Govt.................................................................. 1,806 -162 535 41 -258 743 -5 55 1 Excludes transfers under military grants. 6 Equals sum of items 1-6. 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 Excludes initial allocation by the IMF of $867 million of SDR’s on add to totals because of rounding. Jan. 1, 1970. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Imports : Export surplus Period 1969 1970 1971 1968 1969 1970 1971 1968 1969 1970 1971 Month: Jan.. 2,814 3 2,094 3,406 3,735 2,687 3 2,014 3,223 3,686 127 80 183 49 Feb.. 2,775 3 2,313 3,547 3,690 2,592 3 2,653 3,278 3,553 184 -340 269 136 Mar.. 3 2,439 3 3,197 3,376 3 2,589 3 2,976 3,218 -150 221 158 Apr.. 3 2,855 3 3,353 3,409 3 2,604 3 3,173 3,263 251 180 146 May. 2,740 3 3,296 3,661 2,755 3 3,276 3,338 -15 20 323 June. 2,870 3 3,211 3,730 2,792 3 3,185 3,266 78 26 465 July. 2,858 3,168 3,699 2,725 3,064 3,255 133 104 444 Aug.. 3 2,950 3,370 3,592 2,872 3,179 3,346 78 191 246 Sept.. 3 3,211 3,323 3,553 2,951 3,054 3.428 261 269 125 Oct.. 3 2,631 3,362 3,689 2,736 3,221 3,501 -105 141 188 Nov.. 2,972 3,365 3,499 2,883 3,212 3.428 89 153 71 Dec.. 2,977 3,238 3,570 2,908 3,006 3,404 70 232 166 Quarter I____ 8,028 7,604 10,328 7,867 7,643 9,719 161 -39 609 11... 8,465 9,860 10,800 8,151 9,635 9,867 314 225 933 111... 9,019 9,862 10,845 8,548 9,297 10,029 471 565 816 IV... 8,580 9,966 10,758 8,527 9,438 10,333 53 852 425 Year4.. 34,063 37,332 42,732 33,226 36,043 39,948 837 1,289 2,784 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 □ APRIL 1971 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 1962 1963 1964 1965 1966 1967 1968 1969 1970 IV 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 -129 -129 I G re e l r a m n a d n .. y .. , .. . F ... e .. d .. . .. . R .... e .. p .. . . .. o ... f . . .. .. . . , -2 - 2 1 5 -2 -2 -52 50 41 0 • • "2 5 2 0 5 0 Italy.......................................... 200 -80 -60 -209 -76 Netherlands......................... -60 -35 -19 -30 Spain........................................ —146 -130 -32 -180 Switzerland........................... 102 -81 -50 -30 -50 -25 United Kingdom.................. -387 329 618 150 -879 -835 Bank for Intl. Settlements. 200 200 Other...................................... -12 -35 -49 16 -47 11 -29 -7 -1 -21 Total. -1,105 -399 -1,299 -659 -980 -669 969 -204 721 -27 -180 Canada 190 200 150 50 Latin American republics: Argentina ......................... -39 -1 -25 -25 -28 -15 -23 Brazil................................... 25 -3 -1 -23 -23 Colombia........................... 29 7 -1 Venezuela........................... -25 Other................................... -5 -9 -13 -40 -29 -80 -12 -9 -66 Total. 175 32 56 -41 -65 -131 -9 -4 -111 Asia: Iraq.................. -21 -42 Japan............... -119 -119 Lebanon......... -32 -95 Malaysia......... -1 -34 Philippines. .. 25 9 40 -4 Saudi Arabia. -13 -50 Singapore----- -81 Other................ -47 -14 -14 -75 -91 2 23 -41 Total.................... -93 -86 -44 -366 42 -213 -1 24 -39 -197 All other........................... -1 -22 3-166 3-68 -1 -81 1 -4 -75 Total foreign countries. -833 -392 -36 -1,322 -608 -1,031 -1,118 957 -631 695 -14 -73 -563 Intl. Monetary Fund5.. 6-225 177 22 -3 10 -156 -322 4142 Grand total.......... -833 -392 -36 -1,547 -431 -1,009 -1,121 967 -787 695 -14 -395 -422 1 Includes purchase from Denmark of $25 million. 5 Includes IMF gold sales to and purchases from the United States, 2 Includes purchase from Kuwait of $25 million. U.S. payment of increases in its gold subscription to IMF, gold deposits 3 Includes sales to Algeria of $150 million in 1967 and $50 million in by the IMF (see note 1 (b) to Table 4), and withdrawal of deposits. The 1968. first withdrawal, amounting to $17 million, was made in June 1968. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Govt, to the IMF. The country data include U.S. gold sales to various countries securities. In Sept. 1970 IMF repurchased $400 million. in connection with the IMF quota payments. Such U.S. sales to countries 6 Payment to the IMF of $259 million increase in U.S. gold subscription and resales to the United States by the IMF total $548 million each. less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 4 Represents the U.S. gold tranche position in the IMF (the U.S. IMF operations. Does not include transactions in gold relating to gold quota minus the holdings of dollars of the IMF), which is the amount deposit or gold investment (see Table 6). that the United States could 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. 6 Includes $30 million of special drawing rights. commitment to repurchase by an equivalent amount. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. 3 Includes dollars obtained by countries other than the United States quota was increased to $4,125 million in 1959, to $5,160 million in Feb. from sales of gold to the IMF. 1966, and to $6,700 million in Dec. 1970. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) year 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 e n 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 C u 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 i r o v 3 n e SDR’s4 1958... 22,540 20,582 20,534 1 ,958 1970 1959... 21,504 19,507 19,456 1,997 Mar___ 17,350 11,903 11,367 1,950 2,577 920 1960. . . 19,359 17,804 17,767 1,555 Apr.. .. 16,919 11,902 11.367 1,581 2,510 926 May. .. 16,165 11,900 11.367 980 2,360 925 1961. . . 18,753 16,947 16,889 116 1,690 June... 16,328 11,889 11,367 1,132 2,350 957 1962. .. 17,220 16,057 15,978 99 1,064 July. . . 16,065 11,934 11,367 716 2,454 961 1963... 16,843 15,596 15,513 212 1,035 Aug.... 15,796 11,817 11,367 695 2,323 961 1964.. . 16,672 15,471 15,388 432 769 Sept___ 15,527 11,494 11,117 1,098 1,944 991 1965. . . 15,450 613,806 613,733 781 6 863 Oct.. . . 15,120 11,495 11,117 811 1,823 991 Nov___ 14,891 11,478 11,117 640 1,812 961 1966. . . 14,882 13,235 13,159 1,321 326 Dec.. .. 14,487 11,072 10,732 629 1,935 851 1967. . . 14,830 12,065 11,982 2,345 420 1968. . . 15,710 10,892 10,367 3,528 1,290 1971 1969. . . 7 16,964 11,859 10,367 72,781 2,324 Jan.. . . 14,699 11,040 10,732 491 1,700 1 ,468 1970... 14,487 11,072 10,732 629 1,935 Feb... . 14,534 11,039 10,732 327 1,700 1,468 Mar___ 14,342 10,963 10,732 256 1,680 1,443 1 Includes (a) gold sold to the United States by the International Mon­ 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. etary Fund with the right of repurchase, and (b) gold deposited by the 6 Reserve position includes, and gold stock excludes, $259 million gold IMF to mitigate the impact on the U.S. gold stock of foreign purchases subscription to the IMF in June 1965 for a U.S. quota increase which for the purpose of making gold subscriptions to the IMF under quota became effective on Feb. 23, 1966. In figures published by the IMF from increases. For corresponding liabilities, see Table 6. June 1965 through Jan. 1966, this gold subscription was included in the 2 Includes gold in Exchange Stabilization Fund. U.S. gold stock and excluded from the reserve position. 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 Includes initial allocation by the IMF of $867 million of Special Draw­ Note.—See Table 23 for gold held under earmark at F.R. Banks for ing Rights on Jan. 1, 1970, and second allocation of $717 million of foreign and international accounts. Gold under earmark is not included SDR’s on Jan. 1, 1971, plus net transactions in SDR’s. 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. U.S. transactions with IMF Transactions by reserve other countries Period with IMF position P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F i T t c f i r c o u o a i r r n e n e r s s i s e g a n 2 i n c n ­ ­ I i M d n o c F l o l a m n rs e et P d u o r l c 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 r u 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 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2.836 55 2,324 1970. 1,155 6712 'iso 25 -854 741 1,929 4.765 71 1.935 1970—Mar.. 5 -178 103 -70 2,583 50 2,577 Apr.. 3 -2 66 67 2,650 51 2,510 May. 150 150 2,800 54 2,360 June. 5 -2 7 10 2,810 54 2,350 July.. 2 -139 33 -104 2,706 52 2,454 Aug.. 1 -20 150 131 2.837 55 2,323 Sept.. 6 132 10 -16 253 379 3,216 62 1,944 Oct.. 129 -3 -34 29 121 3,337 65 1,823 Nov.. 104 1 -95 1 11 3,348 65 1,812 Dec.. 1,155 315 -1 -73 21 1,417 4.765 71 1.935 1971—Jan.. , 250 -23 11 235 5.000 75 1.700 Feb.. * 5.000 75 1.700 Mar.. 20 20 5,020 75 1,680 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. □ APRIL 1971 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreigr l countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Non­ p E e o r n i f o d d Total Total p G o d s o e i l t ­ d 1 m in G e v o n e l t s d t 2 ­ Total i i p S t b n l i t i o a e h e a b r U s n r b o y t m k e i r . r l S t s e d ­ ­ . ­ M n b G o U a a o a t o b n n . e r S v l d k s d e . t e s , 4 t­ c m T b o U a a o i n u r a b b e n n v r . r l S l y a d e d k e e s . r s e ­ t t ­ ­ Total i i p S t b n l i t i o e a h e a b r s U n r b o y t m k e i r . r l S t s e d ­ ­ . ­ M n b G o U a a o a t o b n r n . e S v l k d d s e t e . s , 4 t ­ Total i i n p S t b l i t i o e a h e a U b r s n r b o y t . m k i e r S r l t e s d ­ . ­ ­ 6 M n b G U o a a o a t o b n n r . e S v l k d d s e . t e s , 4 t ­ 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 1960 8.......... / \ 2 2 0 1 , , 9 0 9 27 4 8 8 0 0 0 0 8 8 0 00 0 1 1 1 1, , 0 0 8 7 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 7 7, , 5 5 9 9 1 8 7 7 , ,0 0 4 48 8 5 5 5 43 0 1 1 , , 5 5 4 2 1 5 7 75 5 0 0 7 79 7 1 5 1961 8.......... / \ 2 2 2 2 , , 8 9 5 3 3 6 8 80 0 0 0 8 80 00 0 1 11 1 , , 8 8 3 30 0 1 1 0 0 , , 9 94 4 0 0 8 89 9 0 0 8 8, , 2 3 7 5 5 7 7 7, , 8 7 4 5 1 9 5 51 1 6 6 1 1 , , 9 9 4 4 8 9 7 70 0 3 4 1 1 , , 2 2 4 4 5 5 1962 8 , , , , /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 1963 8........... / 1 2 2 6 6 , , 3 3 6 2 1 2 8 80 0 0 0 8 80 00 0 1 1 4 4 , , 3 3 5 8 3 7 1 1 2 2, ,4 46 67 7 1 1 , , 2 1 1 83 7 7 70 0 3 3 9 9 , , 2 2 1 0 4 4 8 8 , , 8 8 6 6 3 3 3 3 4 5 1 1 1 1 , , 9 9 6 6 5 0 8 8 0 0 8 8 1 1 , , 1 15 5 7 2 (28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 1964 8 129,002 800 800 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 1966 8.......... 1 /2 2 9 9 , , 9 7 0 79 4 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 8 0 0 0 0 1 1 3 3 , , 6 6 5 0 5 0 1 1 2 2, , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 1 1 4 4 , , 2 3 0 8 8 7 1 1 3 3 , , 6 8 8 5 0 9 5 5 2 2 8 8 9 9 0 0 5 6 5 58 8 1 0 3 32 2 5 5 1967 8.......... / \3 3 3 3 , , 1 2 1 71 9 1 1 , , 0 0 3 3 3 3 2 2 3 33 3 8 8 0 0 0 0 1 1 5 5 , , 6 6 5 4 3 6 1 1 4 4 , , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 1 1 5 5 , , 7 8 6 9 3 4 1 1 5 5 , , 2 3 0 3 5 6 5 5 5 5 8 8 6 69 7 1 7 4 47 8 3 7 2 2 0 0 4 4 /33,828 1,030 230 800 12,548 11,318 529 701 19,525 18,916 609 725 683 42 1968 9.......... \33,614 1,030 230 800 12,481 11,318 462 701 19,381 18,916 465 722 683 39 1969- Dec. 8, io /41,776 1,019 219 800 11,992 11,054 383 555 28,106 27,577 529 659 609 50 \41,900 1,019 219 800 11,994 11,056 383 555 28,224 27,695 529 663 613 50 1970-Jan.. . 42,846 1,019 219 800 12,682 11,870 383 429 28,410 27,879 531 735 685 50 Feb... 42,991 1,010 210 800 14,025 13,216 380 429 27,140 26,656 484 816 766 50 Mar... 42,972 1,010 210 800 14,767 13,958 380 429 26,390 25,914 476 805 755 50 Apr... 43,362 1,010 210 800 14,414 13,605 380 429 27,172 26,687 485 766 715 51 May.. 43,226 1,010 210 800 14,797 13,986 382 429 26,716 26,215 501 703 652 51 June.. 43,382 1,010 210 800 15,306 14,480 397 429 26,386 25,850 536 680 628 52 July... 43,513 1,010 210 800 16,602 15,756 417 429 25,143 24,601 542 758 705 53 Aug... 44,012 1,010 210 800 16,622 15,776 417 429 25,536 24,974 562 844 799 45 Sept... 44,220 587 187 400 17,778 16,932 417 429 25,092 24,525 567 763 717 46 Oct... 44,232 587 187 400 18,131 17,376 326 429 24,700 24,135 565 814 769 45 Nov... 44,493 579 179 400 19,961 19,206 326 429 23,168 22,582 586 785 738 47 Dec.. . 43,269 566 166 400 20,066 19,293 344 429 21,795 21,156 639 842 817 25 1971-Jan. p. 43,734 559 159 400 20,500 19,727 344 429 21,637 20,953 684 1,038 1,014 24 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 IMF “holdings of dollars,” and holdings of U.S. Treasury the securities is included under “Gold investment.” The difference, which letters of credit and non-negotiable, non-interest-bearing special United amounted to $19 million at the end of 1970, 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

APRIL 1971 □ 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 fo T r o e t i a g l n E W u e ro st p e e r n i Canada Am L e a r ti i n can Asia Africa cou O n t t h ri e e r s 2 countries republics 15,646 9,872 996 1,131 3,145 249 253 f 12,548 7,009 533 1,354 3,168 259 225 \ 12,481 7,001 532 1,354 3,122 248 224 1969—Dec........................................................................................... 411,994 5,860 495 1,681 3,190 546 222 1970—Jan............................................................................................. 12,682 6,291 600 1,745 3,318 533 195 Feb............................................................................................ 14,025 7,251 662 1,896 3,331 702 183 Mar........................................................................................... 14,767 7,394 590 2,094 3,780 705 204 Apr............................................................................................ 14,414 6,942 733 2,101 3,668 725 245 May.......................................................................................... 14,797 7,311 762 2,066 3,632 744 282 June.......................................................................................... 15,306 8,064 500 2,109 3,571 710 352 July........................................................................................... 16,602 9,569 527 2,102 3,331 691 382 Aug............................................................................................ 16,622 9,674 690 1,987 3,189 692 390 Sept........................................................................................... 17,778 11,171 620 1,738 3,254 661 334 Oct............................................................................................. 18,131 11,589 575 1,767 3,336 526 338 19,961 13,254 637 1,641 3,639 449 341 Dec............................................................................................ 20,066 13,046 662 1,536 4,060 407 355 1971—Jan.®........................................................................................ 20,500 13,702 678 1,370 4,046 381 323 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 i abilities resulting from revaluation of the German mark in Oct. 1969. 8. 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 organizations5 Payable in dollars Deposits IMF End of period Total i Total Dem D an e d pos T it i s me 2 b T i c l r 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 o r h b m r e . t 3 r ­ P r f e a o c n y r i u e n c a r i i b g ­ e l n s e i m n g v o e e n l s d t t­ 4 Total Demand Time2 b T i c l r c e l U 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 ­ 1968.................................. 31,717 31,081 14,387 5,484 6,797 4,413 636 800 683 68 113 394 108 1 Q£Q 6 /40,040 39,611 20,430 6,834 5,015 7,332 429 800 609 57 83 244 224 140,164 39,735 20,436 6,957 5,015 7,327 429 800 613 62 83 244 223 1970—Feb....................... 41,438 41,012 18,880 7,245 6,602 8,285 426 800 766 80 115 317 255 Mar...................... 41,427 41,025 18,004 7,238 7,228 8,555 402 800 755 86 131 330 207 Apr....................... 41,807 41,445 18,724 7,021 7,164 8,536 362 800 715 92 128 237 258 May...................... 41,653 41,302 18,139 7,287 7,564 8,312 351 800 652 70 132 226 224 June...................... 41,758 41,420 18,091 7,269 8,159 7,901 338 800 628 83 119 194 232 July...................... 41,862 41,518 17,220 7,178 9,103 8,017 344 800 705 73 131 218 284 Aug....................... 42,349 42,012 17,432 7,240 9,845 7,495 337 800 799 66 137 252 343 Sept...................... 42,574 42,217 17,234 7,238 10,856 6,889 357 400 717 73 135 179 330 Oct........................ 42,680 42,330 17,041 7,041 11,665 6,583 350 400 769 68 144 188 368 Nov...................... 42,926 42,583 15,833 6,725 13,651 6,374 343 400 738 68 137 148 385 Dec....................... 41,666 41,298 15,792 5,885 14,110 5,511 368 400 817 69 156 211 381 1971—Jan.®.................... 42,094 41,716 14,763 5,645 14,440 6,868 378 400 1,014 115 151 273 475 Feb.®.................. 42,406 41,996 13,433 5,469 16,361 6,733 410 400 935 64 145 279 447 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. □ APRIL 1971 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 End of period Total Dema D n e d posi T ts ime2 T b c i r l c e U e l a s r a . t t s S i e a f u s . n i r ­ d y s O l t i h e a t o r b h m r . e 3 t r ­ P f r o e a c n r y i u e c n a i r i b g ­ e l n s e Total Dema D n e d posits T bi c r c l U e e l a s a r . t t S s e i a u f . s n i r ­ d y s O l t h i e a t o r h b m r e . t 3 r ­ c P u f r a o r y r e i e a n n i b c g l i n e es 1968.............. 30,234 14,320 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 1,321 463 1969.6......... 3 3 8 8 , , 7 6 5 3 1 1 2 20 0 . . 3 3 7 7 3 2 6 6, , 7 8 5 7 1 4 3 3. . 9 97 7 1 1 7 7 , , 1 1 0 0 9 4 4 4 2 2 9 9 1 1 1 1 , , 0 0 5 5 4 6 1 1 . . 9 9 1 1 8 9 2 2 . . 9 9 5 5 1 1 3 3 . . 8 8 4 4 4 4 2 2 . . 1 1 3 4 9 0 2 2 0 02 2 1970—Feb.. 39.872 18,800 7,130 5,485 8,031 426 13,216 1,664 3,263 5,381 2,706 202 Mar.. 39.872 17,918 7,107 6,098 8,348 402 13,958 1,448 3,412 5,989 2,907 202 Apr.. 40,292 18,632 6,893 6,127 8,278 362 13,605 1,300 3,372 6,035 2,750 148 May. 40,201 18,069 7,155 6,538 8,088 351 13,986 1,340 3.426 6,417 2,655 148 June. 40,330 18,008 7,150 7,166 7,668 338 14,480 1,421 3,475 7,020 2,416 148 July.. 40,357 17,147 7,047 8,086 7,733 344 15,756 1,576 3,502 7,946 2,584 148 Aug.. 40,750 17,366 7.103 8,793 7,151 337 15,776 1,249 3,612 8,653 2,114 148 Sept.. 41,457 17,161 7.103 10,277 6,560 357 16,932 1,369 3,440 10,141 1,834 148 Oct.. 41,511 16,972 6,897 11,077 6,215 350 17,376 1,444 3,178 10,919 1,687 148 Nov.. 41,788 15,764 6,588 13,103 5,989 343 19,206 1,367 2,846 12,967 1,878 148 Dec.. 40,449 15,723 5,729 13,498 5,130 368 19,293 1,629 2,568 13,354 1,594 148 1971—Jan.p. 40,680 14,647 5,494 13,768 6,393 378 19,727 1,741 2,491 13,609 1,738 148 Feb.? 41,071 13,369 5,324 15,682 6,287 410 21,518 1,660 2.427 15,513 1,768 150 To banks 8 To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Deposits T b c i r l c e e U l a s r a . t t s S e i a u fD s . n i r ­ d e y m an s O ld t i h e a t o r h b m r e . t 3 r ­ Time2 Total Deposi T ts ime2 T b c i r l c e U e l a s r a . t t s S e i a f u D s . n i r ­ d y e m an s O ld t i h e a t o r h b m r . e 3 t r ­ f r o e c r n u e c r i i g ­ e n s 1968........................... 18,916 14,299 10,374 1,273 30 2,621 4,444 1.797 2,199 86 362 173 1 QAQ 6 / 27,577 23,412 16,745 1.988 20 4,658 3,939 1,709 1.811 107 312 226 1 27,695 23,407 16,744 1,989 20 4,654 4,062 1,710 1,934 107 312 226 1970—Feb................ 26,656 22,541 15,471 2,077 27 4,967 3,892 1,666 1,790 78 358 223 Mar............... 25,914 21,751 14,702 1,947 21 5,081 3,964 1.767 1,748 89 361 199 Apr................ 26,687 22,499 15,547 1,781 19 5,152 3,974 1,785 1,740 74 375 214 May.............. 26,215 22,025 15,020 1,951 20 5,035 3,988 1,710 1,779 102 398 202 June.............. 25,850 21,564 14,817 1,851 26 4,871 4,096 1J70 1,824 120 383 190 July............... 24,601 20,434 13,909 1,733 24 4,768 3,971 1,662 1,812 116 381 196 Aug............... 24,974 20,839 14,432 1,726 23 4,658 3,946 1,685 1,764 116 380 189 Sept............... 24,525 20,400 14,139 1,893 23 4,345 3,917 1,653 1,770 114 380 208 Oct................ 24,135 20,055 13,921 1,957 32 4,145 3,878 1,607 1,762 127 383 202 Nov............... 22,582 18,433 12,747 1,922 21 3,743 3,954 1,651 1,820 115 369 195 Dec............... 21,156 16,894 12,360 1,323 14 3,197 4,042 1,734 1,839 131 338 220 1971—Jan. ............. 20,953 16,683 11,218 1,166 29 4,271 4,040 1,689 1,836 130 385 230 Feb.2’............ 19,553 15,219 10,038 997 26 4,158 4,074 1,670 1,901 143 361 260 1 Data exclude “holdings of dollars” of the International Monetary with those shown for the preceding date; figures on the second line are Fund. comparable with those shown for the following date. 2 Excludes negotiable time certificates of deposit, which are included 7 Foreign central banks and foreign central govts, and their agencies, in “Other.” and Bank for International Settlements and European Fund. 3 Principally bankers’ acceptances, commercial paper, and negotiable 8 Excludes central banks, which are included in “Official institutions.” time certificates of deposit. 4 U.S. Treasury bills and certificates obtained from proceeds of sales of Note.—“Short-term” refers to obligations payable on demand or having gold by the IMF to the United States to acquire income-earning assets. an original maturity of 1 year or less. For data on long-term liabilities Upon termination of investment, the same quantity of gold can be re­ reported by banks, see Table 10. Data exclude the “holdings of dollars” acquired by the IMF. of the International Monetary Fund; these obligations to the IMF consti­ 5 Principally the International Bank for Reconstruction and Develop­ tute contingent liabilities, since they represent essentially the amount of ment and the Inter-American Development Bank. dollars available for drawings from the IMF by other member countries. Includes difference between cost value and face value of securities in Data exclude also U.S. Treasury letters of credit and non-negotiable, non- IMF gold investment account. interest-bearing special U.S. notes held by the Inter-American Develop­ 6 Data on the two lines shown for this date differ because of changes in ment Bank and the International Development Association, reporting coverage. Figures on the first line are comparable in coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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) 1969 1970 1971 Area and country Dec. June July Aug. Sept. Oct. Nov. Dec. Jan.® Feb.® Europe: Austria............................................................................ 314 265 274 287 273 263 236 185 204 198 Belgium-Luxembourg................................................. 530 526 582 581 614 742 709 596 760 766 153 167 189 189 195 193 187 189 196 216 Finland............................................................................ 120 130 134 140 137 134 139 117 117 112 France............................................................................. 1,581 1,915 2,030 2,282 2,286 2,311 2,417 2,267 2,354 2,263 1,381 3,455 4,241 4,505 5,439 5,977 7,543 7,520 7,795 8,516 Greece............................................................................. 207 179 198 199 204 212 198 184 162 176 627 911 902 839 909 1,104 1,162 1,317 1,579 1,623 Netherlands................................................................... 463 382 469 631 626 800 748 762 584 652 Norway........................................................................... 341 216 272 309 287 315 291 324 317 311 Portugal.......................................................................... 309 257 272 272 275 251 250 274 299 299 Spain................................................................................ 202 228 325 416 391 299 234 198 205 209 Sweden............................................................................ 412 410 429 431 389 378 449 503 519 541 Switzerland.................................................................... 2,005 2,266 2,192 2,032 2,015 1,985 1,914 1,947 1,936 2,009 Turkey............................................................................. 28 25 27 28 34 34 37 46 53 51 United Kingdom......................................................... 11,349 9,481 8,339 8,600 9,113 7,865 6,659 5,508 5,637 5,209 Yugoslavia.......................................................................... 37 32 35 27 33 31 49 37 36 46 Other Western Europe1........................................... 1,553 1,496 1,563 1,154 850 747 828 594 460 374 U.S.S.R................................................................................ 11 18 8 7 3 13 13 15 11 9 Other Eastern Europe............................................... 50 49 53 41 46 43 48 54 63 56 Total............................................................................ 21,674 22,408 22,534 22,971 24,118 23,694 24,112 22,637 23,284 23,634 Canada................................................................................ 4,012 3,421 3,646 3,827 3,787 4,529 4,213 4,016 3,626 3,647 Latin America: Argentina............................................................................ 416 535 588 581 533 605 560 539 508 514 Brazil................................................................................... 425 555 544 427 398 419 353 305 344 325 Chile..................................................................................... 400 458 444 429 325 359 327 265 256 247 Colombia............................................................................ 261 302 275 294 282 258 244 247 231 212 Cuba..................................................................................... 7 7 6 7 7 6 7 7 7 8 849 859 896 915 846 780 876 820 828 824 Panama............................................................................... 140 168 169 170 177 174 178 162 163 174 Peru...................................................................................... 240 242 210 208 221 213 213 225 186 177 Uruguay.............................................................................. 111 122 113 108 107 104 108 117 125 124 Venezuela............................................................................ 691 682 637 651 630 643 652 735 672 689 Other Latin American republics............................ 576 661 651 635 631 618 604 620 617 611 Bahamas and Bermuda................................................. 1,405 1,505 1,306 1,189 1,015 761 806 733 799 673 Netherlands Antilles and Surinam............................. 80 95 84 88 95 91 96 98 92 95 Other Latin America...................................................... 34 39 44 40 34 39 42 39 37 38 5,636 6,231 5,967 5,740 5,300 5,065 5,064 4,911 4,866 4,712 Asia: China Mainland............................................................... 36 43 41 41 41 38 35 33 36 36 213 225 226 245 235 250 274 258 305 317 India..................................................................................... 260 356 363 356 366 401 426 302 236 229 Indonesia............................................................................ 86 68 59 61 53 50 85 73 60 65 Israel..................................................................................... 146 147 131 115 121 118 107 135 121 128 Japan................................................................................... 3,809 4,018 3,942 3,996 4,149 4,274 4,557 5,147 5,166 5,449 Korea................................................................................... 236 289 307 280 263 195 185 199 193 178 Philippines.......................................................................... 201 261 264 275 242 282 279 297 294 308 Taiwan................................................................................. 196 262 260 212 228 247 260 275 292 278 Thailand.............................................................................. 628 627 603 591 5 85 549 511 508 489 469 Other.................................................................................... 606 714 745 779 768 727 680 708 722 735 Total............................................................................ 6,417 7,011 6,941 6,951 7,052 7,133 7,401 7,936 7,913 8,192 Africa: Congo (Kinshasa)............................................................ 87 52 50 30 18 17 17 14 16 13 Morocco.............................................................................. 21 43 33 21 14 14 10 11 7 7 South Africa...................................................................... 66 45 47 49 47 53 55 83 71 71 U.A.R. (Egypt)................................................................. 23 22 24 19 19 19 20 17 16 19 Other.................................................................................... 505 683 664 685 678 567 471 395 469 334 Total............................................................................ 701 845 817 803 777 669 574 521 580 443 Other countries: Australia............................................................................. 282 383 418 428 389 390 392 389 376 398 All other.............................................................................. 29 32 33 31 34 31 33 39 34 46 Total............................................................................ 311 : 414 451 459 423 421 425 428 410 444 Total foreign countries...................................................... 38,751 40,330 40,357 40,750 41,457 41,511 41,788 40,449 40,680 41,071 International and regional: International2.................................................................... 1,261 1,194 1,250 1,330 848 881 873 975 1,175 1,086 Latin American regional............................................... 100 131 143 150 145 175 152 131 150 156 Other regional3................................................................. 52 103 112 119 124 113 113 111 89 93 Total............................................................................ 1,413 1,428 1,505 1,599 1,117 1,169 1,138 1,217 1,414 1,335 Grand total............................................................... 40,164 41,758 41,862 42,349 42,574 42,680 42,926 41,666 42,094 42,406 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. □ APRIL 1971 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY— Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 4 1968 1969 1970 1968 1969 1970 Area or country Area or country Dec. Apr. Dec, Apr. Dec. Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: Cyprus............................................ 2 11 15 Jordan............................................... 3 4 17 30 Iceland........................................... 6 4 9 10 10 Kuwait.............................................. 67 40 46 66 Ireland, Rep. of.......................... 24 20 38 32 41 Laos................................................... 3 4 3 4 5 Lebanon........................................... 78 82 83 82 54 Other Latin American republics: Malaysia........................................... 52 41 30 48 22 Bolivia............................................. 66 65 68 76 69 Pakistan............................................ 60 24 35 34 38 Costa Rica...................................... 51 61 52 43 41 Ryukyu Islands (incl. Okinawa) 17 20 25 26 Dominican Republic.................. 69 59 78 96 99 Saudi Arabia.................................. 29 48 106 166 106 * E El c u S a a d lv o a r d ... o .. r .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 8 6 2 6 89 2 7 6 6 9 7 79 2 7 7 5 9 S S i y n r g ia a .. p .. o ... r . e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 2 40 4 17 4 25 6 57 7 Guatemala...................................... 86 90 84 110 100 Vietnam............................................ 51 40 94 91 179 Haiti................................................. 17 18 17 19 16 Honduras........................................ 33 37 29 29 34 Other Africa: Jamaica........................................... 42 29 17 17 19 Algeria............................................... 8 6 14 13 17 Nicaragua....................................... 67 78 63 76 59 Ethiopia (incl. Eritrea)................ 13 15 20 33 19 Paraguay......................................... 16 18 13 17 16 Ghana............................................... 3 8 10 7 8 Trinidad & Tobago.................... 10 8 11 10 Kenya................................................ 29 34 43 47 38 Liberia............................................... 25 28 23 41 22 Libya................................................. 69 68 288 430 195 Other Latin America: Nigeria.............................................. 20 10 11 11 British West Indies...................... 25 25 30 38 33 Southern Rhodesia....................... 1 2 2 2 Sudan................................................. 5 3 3 1 Other Asia: Tanzania........................................... 21 23 10 18 Afghanistan.................................... 6 8 16 15 Tunisia.............................................. 7 2 6 7 7 Burma.............................................. 5 5 2 5 4 Uganda............................................. 6 9 5 7 8 Cambodia....................................... 2 2 1 1 2 Zambia............................................. 25 19 20 38 10 Ceylon............................................. 4 5 3 4 4 Iran................................................... 41 44 35 41 32 All other: Iraq................................................... 86 77 26 6 New Zealand.................................. 17 20 16 18 25 1 Includes Bank for International Settlements and European Fund. 3 Asian, African, and European regional organizations, except BIS and 2 Data exclude “holdings of dollars” of the International Monetary European Fund, which are included in “Europe.” Fund but include IMF gold investment. 4 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 i c t i s u a ­ l Banks1 fo O r e e t r h i s g e n r ­ A t r i g n e a n­ A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ies 196 7 2,560 698 1,863 1,807 40 251 234 126 443 218 502 89 196 8 3,166 777 2,389 2,341 40 284 257 241 658 201 651 97 196 9 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 1970—Feb.., 2,341 872 1,470 1,375 59 36 25 190 6 657 54 414 122 Mar.. 2,343 891 1,452 1,351 62 40 25 202 6 636 49 403 131 Apr.., 2,274 845 1,429 1,318 64 46 25 210 6 636 49 376 127 May., 2,212 857 1,355 1,241 64 50 25 217 6 619 28 328 132 June . 2,128 848 1,280 1,116 116 48 25 216 6 576 28 242 187 July . 2,034 827 1,208 1,036 118 54 25 198 7 523 28 237 191 Aug.. 1,937 839 1,097 928 118 51 25 145 7 499 22 204 194 Sept.. 1,917 863 1,054 883 119 53 25 147 7 477 11 190 197 Oct... 1,837 845 992 821 119 52 25 147 7 466 9 141 196 Nov.. 1,728 809 919 749 118 52 13 143 7 416 8 138 193 Dec.. 1,697 788 909 695 160 54 13 138 6 385 122 236 1971—Jan.*5. 1,586 735 852 635 157 60 13 144 6 340 107 233 Feb.? 1,453 688 765 562 153 51 13 106 6 310 100 229 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ 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) 1969 1970 1971 Area and country Dec. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.P Feb.33 Europe: Denmark................................. 9 6 6 6 6 6 6 6 6 5 5 3 3 3 France...................................... 6 6 6 6 6 6 6 6 6 6 6 6 6 7 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............................. 42 46 46 46 45 45 44 47 49 49 49 49 48 49 United Kingdom.................. 407 358 350 359 369 396 401 411 423 424 447 499 546 544 Other Western Europe.... 24 24 24 24 24 24 24 24 24 24 24 24 24 29 Eastern Europe.................... 7 7 7 7 7 7 7 7 7 7 6 6 6 6 Total.................................... 538 491 483 492 501 529 532 545 560 559 582 632 677 681 Canada........................................ 272 270 271 271 279 286 287 294 284 191 190 192 192 191 Latin America: Latin American republics.. 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Neth. Antilles & Surinam. 12 12 12 12 12 12 12 12 12 12 12 12 12 12 Other Latin America.......... 2 2 2 2 2 2 3 4 4 5 4 4 4 4 Total............................... 15 15 15 15 15 15 16 17 17 18 18 18 18 18 Asia: Japan........................................ 61 62 62 62 61 61 61 61 61 61 61 61 61 61 Other Asia............................. 18 18 18 18 19 19 19 19 19 19 18 38 38 38 Total............................... 79 80 80 80 81 81 81 81 80 80 80 99 99 99 Other countries......................... 7 7 7 7 7 22 42 42 42 42 42 42 42 42 Total foreign countries........... 912 864 856 865 883 933 959 979 984 891 912 983 1,028 1,031 International and regional: International.......................... 32 31 30 30 30 30 30 22 22 22 22 * * 16 Latin American regional.. 18 19 20 20 21 21 22 23 23 23 24 24 25 25 Asian regional....................... Total............................... 50 50 50 51 51 52 53 45 45 46 46 24 25 41 Grand total................... 962 914 906 916 934 985 1,012 1,024 1,030 936 959 1,008 1,052 1,072 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 D a e r n k ­ Italy2 Korea S d w en e­ Tai- T la h n a d i­ Total A tr u ia s­ g B iu e m l­ m G a e n r y ­ 3 Italy e S r w la i n tz d ­ 196 8 3,330 1,692 32 1,334 20 146 15 25 20 100 1,638 50 1,051 226 311 196 9 43,181 1,431 32 1,129 135 15 20 100 4 1,750 4 1,084 125 541 1970— Mar. 2,799 1,717 32 1,429 121 15 20 100 1.083 542 541 Apr. 2,897 1,814 32 1,529 118 15 20 100 1.083 542 541 May 3,096 2,013 32 1,729 117 15 20 100 1.083 542 541 June 3,511 2,428 32 2.229 32 15 20 100 1 ,083 542 541 July. 3.508 2.425 32 2.229 29 15 20 100 1.083 542 541 Aug. 3.508 2.425 32 2.229 29 15 20 100 1.083 542 541 Sept 3.508 2.425 32 2.229 29 15 20 100 1 ,083 542 541 Oct.. 3,567 2,484 32 2.289 28 15 20 100 1.083 542 541 Nov. 3,564 2,481 32 2.289 25 15 20 100 1.083 542 541 Dec. 3.563 2.480 32 2.289 25 15 20 100 1.083 542 541 1971—Jan. 3.563 2.480 32 2.289 25 15 20 100 1.083 542 541 Feb. 3.563 2.480 32 2.289 25 15 20 100 1.083 542 541 Mar. 3.563 2.480 32 2.289 25 15 20 100 1.083 542 541 1 Includes bonds issued in 1964 to the Government of Canada in connec­ 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 tion with transactions under the Columbia River treaty. Amounts out­ million equivalent were issued to a group of German commercial banks in standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through June 1968. The revaluation of the German mark in Oct. 1969 increased Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and the dollar value of these notes by $10 million. Oct. 1970 through latest date, $24 million. 4 Includes an increase in dollar value of $101 million resulting from 2 Bonds issued to the Government of Italy in connection with mili­ revaluation of the German mark in Oct. 1969. tary purchases in the United States, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1971 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1969 1970 1971 Area and country Dec. June July Aug. Sept. Oct. Nov. Dec. Jan.? Feb.* Europe: Austria................................................................................. 7 6 13 7 4 5 8 6 4 4 Belgium-Luxembourg.................................................... 56 64 53 52 70 68 71 50 69 68 Denmark............................................................................ 40 33 28 36 34 36 37 40 46 53 Finland................................................................................ 68 63 65 63 63 56 55 66 103 110 France................................................................................. 107 82 83 75 104 78 105 113 95 111 Germany............................................................................. 205 152 125 169 181 182 184 184 142 171 Greece................................................................................. 22 22 25 27 28 27 25 26 21 22 Italy...................................................................................... 120 100 87 90 102 106 92 101 92 98 Netherlands........................................................................ 51 53 49 46 67 52 57 61 74 69 Norway............................................................................... 34 33 31 30 33 40 48 54 61 65 Portugal.............................................................................. 8 12 12 8 10 16 13 11 12 14 70 102 52 51 59 58 54 54 49 56 Sweden................................................................................ 67 112 113 103 112 123 110 97 102 100 Switzerland........................................................................ 99 115 109 123 100 115 98 100 121 113 Turkey................................................................................. 19 16 17 10 6 4 4 9 3 4 United Kingdom............................................................. 408 403 403 340 386 378 430 379 409 512 Yugoslavia.......................................................................... 28 30 32 33 36 42 41 35 35 31 Other Western Europe................................................... 9 8 7 6 7 8 12 22 10 11 U.S.S.R................................................................................ 2 2 1 2 3 3 1 3 2 2 Other Eastern Europe.................................................... 34 41 45 43 40 43 41 36 36 41 Total............................................................................ 1,454 1,449 1,350 1,315 1,446 1,437 1,487 1,448 1,486 1,655 Canada..................................................................................... 826 816 730 751 806 860 865 1,061 867 861 Latin America: C C P P V N C O B O B M A U a e a o h e u r e t t r r e h h a n h r u g n t i l b x h l o u z e e a a e e g a e i e r r i m . m z n m c u . . . l r . . . u . o t L L . . . a l . b a . . . i a . e a . . . . y n . a s a . . . . i . . n l . . . . a . . . . a . . t t . a . . . . . . . d a i i . . . . . . . . . . . n n . . . . . . . . . n . s . . . . . . . . . . . . . . . . . . . . . . . d . . . . . . . . . A . . A . . . . A . . . . . . . . . . . . . . . . . . . . . . . . . B . . . . . m . m . n . . . . . . . . . . . . . . . . . . . . . . . . . . t . . e . . . . . . e . . . . i . e . . . . . . . . . . r . l . . . . . . r . . . . r . . . . l . . m . . . . i . . . . . . . . e . i . . . . . c . . . . . . . c . . . . . . . s . . . . . . . . u a . . . . . . . . . . a . . . . . . . . . . . . n . d . a . . . . . . . . . . . . . . . . . . . . . . . . . n . . . a . . . . . . . . . . . . . r . . . . . . . . . . . . . d . . . . . e . . . . . . . . . . . . . . . . . . . . . . . . . . p . . . . . . . . . . . . . . . . . . S . . . . . . . . . . . . u . . . . . . . . . . . . . . . . . . . . . u . . . . . . . b . . . . . . . . . . . . . . . . . . . . . r . . . . . . . . . l . . . . . . . . . . . . . . i . i . . . . . . . . . . . . . n . . . c . . . . . . . . . . . . . . . . . . . . . . . . . . . s . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 3 3 8 1 1 2 9 9 0 6 4 2 0 1 4 6 8 1 1 1 3 5 5 7 3 7 9 8 8 8 0 4 4 2 2 2 2 9 3 3 1 1 1 5 1 4 9 0 5 2 6 6 7 1 1 1 1 1 5 3 5 3 9 8 2 3 2 8 4 2 2 2 2 9 2 3 1 0 9 2 9 4 5 6 5 5 1 5 0 1 1 1 5 3 6 7 9 8 8 6 6 6 0 0 4 2 2 2 2 2 2 8 1 5 9 9 5 2 6 9 8 6 5 1 4 1 1 1 8 3 7 6 6 0 9 0 4 2 0 7 4 2 2 2 2 9 3 3 1 8 6 0 7 6 2 5 0 1 0 8 3 1 1 5 5 5 7 4 2 7 6 0 3 6 2 4 8 9 2 2 2 3 3 1 1 1 9 9 2 2 6 0 0 8 2 9 5 3 1 1 3 8 4 3 7 6 0 9 9 4 6 4 4 4 2 9 2 3 3 1 3 1 1 2 7 3 2 0 5 4 8 2 0 8 8 1 1 1 1 1 5 2 2 4 9 2 6 4 4 3 4 2 9 2 3 3 1 3 1 1 8 9 8 0 2 2 9 6 2 4 4 7 1 1 1 5 3 4 2 2 7 7 9 2 3 9 4 0 2 2 9 3 3 3 1 1 1 7 2 8 0 3 1 2 8 4 7 5 8 1 1 6 8 2 9 2 3 5 4 6 6 0 9 6 3 9 2 2 3 3 3 1 1 1 4 7 9 9 3 2 3 5 2 5 8 3 1 1 1 1 3 5 6 6 4 7 5 0 4 3 4 4 Total............................................................................ 2,802 2,946 2,900 2,867 2,943 3,041 3,058 3,187 3,141 3,171 Asia: China Mainland............................................................... 1 1 1 1 1 2 1 2 1 1 Hong Kong........................................................................ 36 46 41 35 46 36 36 39 40 41 India..................................................................................... 10 11 12 11 10 12 12 13 16 13 Indonesia............................................................................ 30 52 36 42 46 41 54 56 49 49 Israel..................................................................................... 108 93 90 80 82 105 110 120 99 121 Japan.................................................................................... 3,432 3,513 3,484 3,387 3,331 3,370 3,538 3,890 3,675 3,478 Korea................................................................................... 158 215 222 228 227 218 197 196 196 194 Philippines.......................................................................... 215 268 269 209 215 134 129 137 135 137 Taiwan................................................................................. 49 79 82 81 81 82 82 95 101 113 Thailand.............................................................................. 101 100 96 106 108 100 97 109 106 109 Other.................................................................................... 212 184 180 165 157 160 164 157 167 182 Total............................................................................ 4,352 4,561 4,511 4,345 4,304 4,262 4,420 4,815 4,585 4,437 Africa: Congo (Kinshasa)............................................................ 6 5 5 4 6 4 5 4 7 4 Morocco.............................................................................. 3 4 4 6 5 6 4 6 6 6 South Africa...................................................................... 55 66 69 68 72 72 76 77 83 84 U.A.R. (Egypt)................................................................. 11 15 15 14 13 12 10 13 16 14 Other.................................................................................... 86 68 65 65 63 63 72 79 78 85 Total............................................................................ 162 158 157 157 159 157 166 180 190 194 Other countries: Australia............................................................................. 53 62 63 66 60 59 59 64 70 105 All other.............................................................................. 16 18 15 16 17 15 16 16 17 19 Total............................................................................ 69 80 78 82 77 75 75 80 87 124 Total foreign countries...................................................... 9,664 10,009 9,726 9,516 9,735 9,831 10,071 10,771 10,356 10,443 International and regional................................................. 2 1 1 2 2 1 2 3 2 2 Grand total............................................................... 9,667 10,010 9,727 9,517 9,737 9,832 10,073 10,774 10,357 10,445 Note.—Short-term claims are principally the following items payable their own account or for account of their customers in the United States; on demand or with a contractual maturity of not more than 1 year: loans and foreign currency balances held abroad by banks and bankers and made to, and acceptances made for, foreigners; drafts drawn against their customers in the United States. Excludes foreign currencies held foreigners, where collection is being made by banks and bankers for by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 14. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) Payable in dollars Payable in foreign currencies End of period Total Total Total O in t f i s f o L t i i n c o t 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 f g n c a n a f c e d o c e e p c e r r s s t ­ 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 o n u p c o n o v r a a r i d n m t p e t , i c i e e f l g s e i r . s e ­ n , ­ Other 1968............... 8,711 8,261 3,165 247 1,697 1,221 1,733 2,854 509 450 336 40 73 19692............. (9,578 9,063 3,281 262 1,946 1,073 1,954 3,169 658 518 352 84 79 ) 9,667 9,151 3,278 262 1,943 1,073 2,015 3,202 656 516 352 89 74 1970—Feb.. 9,278 8,817 3,207 265 1,914 1,029 2,060 2,987 563 461 320 67 73 Mar.. 9,414 8,999 3,290 294 1,922 1,074 2,157 3,044 508 415 300 50 65 Apr.. 9,518 9,040 3,116 335 1,734 1,047 2,241 3,223 459 478 342 76 60 May. 9,806 9,308 3,193 315 1,825 1,053 2,312 3,244 559 498 338 93 66 June. 10,010 9,543 3,316 305 1,932 1,079 2,344 3,287 595 467 314 83 69 July.. 9,727 9,306 3,191 256 1,873 1,063 2,350 3,234 531 421 296 66 59 Aug.. 9,517 9,054 2,975 178 1,711 1,087 2,354 3,171 553 463 354 50 59 Sept.. 9,737 9,257 3,231 186 1,936 1,109 2,381 3,056 589 479 366 40 74 Oct.. . 9,832 9,317 3,129 109 1,897 1,123 2,438 3,158 593 515 366 67 83 Nov.. 10,073 9,518 3,132 95 1,894 1,143 2,429 3,330 627 555 354 112 89 Dec.. 10,774 10,123 3,038 119 1,709 1,210 2,414 3,966 705 651 393 92 166 1971—Jan.®. 10,357 9,850 2,849 110 1,561 1,178 2,396 3,950 655 507 308 79 120 Feb.® 10,445 9,909 2,922 88 1,578 1,256 2,388 3,970 629 535 334 111 91 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 End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g e ­ d E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1968.................... 3,567 3,158 528 237 2,393 394 16 68 479 428 1,375 122 617 479 1969.................... 3,250 2,806 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970—Feb........ 3,161 2,727 476 205 2,046 402 33 63 401 416 1,298 86 546 351 Mar,.... 3,226 2,796 519 211 2,067 398 31 68 419 406 1,337 87 559 349 Apr........ 3,248 2,815 508 220 2,087 401 32 74 413 420 1,363 89 546 343 May.... 3,232 2,822 511 211 2,100 380 30 67 426 427 1,348 89 530 345 June.... 3,165 2,776 486 209 2,080 362 27 67 425 416 1,328 92 517 319 July------ 3,115 2,733 473 215 2,044 354 29 69 396 417 1,324 100 502 307 Aug........ 3,118 2,707 458 225 2,023 383 29 64 398 411 1,312 106 515 312 Sept........ 3,142 2,737 447 244 2,046 377 28 65 395 416 1,345 108 499 314 Oct......... 3,216 2,827 518 256 2,053 359 30 67 407 409 1,329 109 582 313 Nov....... 3,199 2,809 498 247 2,064 364 26 66 387 398 1,345 113 582 307 Dec........ 3,067 2,691 504 230 1,957 352 25 71 411 312 1,318 115 548 291 1971—Jan.®. .. 2,953 2,601 485 208 1,909 327 24 70 412 278 1,272 117 523 280 Feb.®... 2,947 2,625 484 208 1,933 296 26 76 420 267 1,248 121 521 295 i 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. □ APRIL 1971 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 c P ha u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t e l e p 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 196 9 -4 -15 -79 64 15,476 12,795 2,681 1,552 2,578 -1,026 1,519 2,037 -517 197 0 46 71 -39 110 11,416 9,849 1,568 1,487 2,420 -934 1,033 995 38 1971—Jan-Feb.P 64 48 5 43 2,757 2,432 324 242 547 -305 157 203 -46 1970—Fe b -50 -50 -47 1,029 950 79 109 265 -156 100 77 23 Mar........... -8 -8 -8 1,108 989 120 168 268 -101 101 115 -13 Apr............ 10 9 9 1,010 850 160 143 186 -42 80 104 -24 May.......... 18 18 2 16 769 930 -161 116 70 47 109 90 18 June........... 51 50 15 35 858 783 76 113 97 16 74 60 15 July............ 27 26 20 6 783 650 133 126 263 -136 62 58 4 Aug............ 13 21 21 656 514 142 143 380 -237 60 45 15 Sept............ 5 5 5 1,034 703 330 110 93 17 76 90 -14 Oct............ -93 -94 -3 1,177 938 239 109 255 -146 71 120 -50 Nov........... 23 22 22 754 609 145 97 87 10 65 76 -11 Dec............ 49 -22 71 53 1,321 1,030 291 140 263 -123 83 86 -3 1971—.Jan.P......... 44 45 45 1,242 1,022 220 116 428 -312 90 95 -5 Feb.?......... 20 3 -2 1,515 1,410 105 126 119 7 67 108 -41 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1969........................ 1,487 150 216 189 490 -245 295 1,094 125 136 90 7 -1 36 1970......................... 623 58 195 128 110 -33 24 482 -9 44 85 -1 1 22 1971—Jan.-Feb.p 98 -36 56 23 21 -16 67 114 -23 * -4 * * 11 1970—Feb............. -13 9 16 6 19 -3 -14 32 -25 -24 3 * * 1 Mar............ -41 -13 11 -8 -26 22 -19 -33 -30 12 6 -1 * 4 Apr............. 4 -8 20 -23 12 -15 5 -10 25 -18 6 * * 1 May........... -200 1 -2 33 — 46 -102 -32 -149 -30 -26 3 -1 * 1 June........... 63 6 3 18 23 -23 14 41 8 -2 15 * * * July............ 52 16 18 16 13 -14 9 58 -16 3 6 * 1 1 Aug............ 104 7 18 16 40 20 11 113 -6 -9 4 * * 2 Sept............ 225 -4 36 37 49 29 6 154 26 20 22 * * 2 Oct............. 158 -3 23 13 -1 32 21 85 31 30 13 -1 * -1 Nov............ 98 7 13 18 11 3 31 84 6 1 * * * 7 Dec............. 216 39 27 8 39 14 11 137 40 32 4 * * 3 1971—Jan.p. , .. 130 -13 27 14 26 7 46 107 11 6 -3 * _ i 12 Feb.p......... -32 -23 28 9 -6 -23 21 7 -34 -6 * * * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1969......................... 1,195 97 200 14 169 251 83 815 32 14 -11 -1 10 336 1970......................... 945 35 48 37 134 118 91 464 128 23 28 1 -12 314 1971—Jan.-Feb.® 226 5 -3 2 31 24 39 98 25 -2 1 * -12 117 1970—Feb............. 92 3 8 5 14 35 -12 53 7 -4 1 * -1 37 Mar............ 161 4 8 19 8 30 9 78 13 10 1 * * 58 Apr............. 156 7 4 16 32 10 7 76 7 6 1 * * 65 May........... 40 3 * * 14 -14 5 9 2 2 2 * -1 26 June........... 13 4 -6 * 4 -12 3 -8 13 2 10 * -6 3 July............ 81 4 -2 -1 23 36 8 68 6 5 1 * -1 1 Aug............ 38 -1 -3 * -1 -1 1 -4 21 2 * -2 21 Sept............ 106 1 25 * 3 -1 2 31 16 -7 1 * * 64 Oct.............. 81 -1 * 1 8 -8 43 43 14 1 6 * -2 19 Nov............ 47 2 1 * 3 1 4 13 17 2 3 * * 13 Dec............. 75 2 7 -3 9 28 18 61 1 1 3 * 1 8 1971—Jan.®......... 89 * -6 * 15 2 * 12 28 -4 * * * 52 Feb.®......... 137 4 3 2 16 22 39 85 -4 1 1 * -12 65 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 i o u g r n n ­ ­ r E o u pe ­ C a a d n a ­ A L i a m c t a i e n r­ Asia r A ic f a ­ O c t o r t i u 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 b d 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 1969.............................. -1,544 66-1,610 74-1,128 -98 -471 -6 20 1967............................................. 311 298 1970.............................. -895 -257 -639 50 -569 -9 -125 -6 20 1971—Jan.-Feb.®... -351 -201 -151 -19 -57 -18 -60 * 3 468 398 636 508 1970— Feb.................. -133 -38 -95 33 -110 -5 -13 -1 2 Mar.................. -114 22 -136 36 -154 5 -23 -1 1 1969—Mar................................ 553 393 Apr.................. -66 9 -75 17 -82 -2 -9 * 1 566 397 May................ 65 11 54 -1 42 3 8 * 2 467 297 June............... 30 5 25 1 39 -1 -15 * 1 434 278 July................ -132 -38 -94 9 -78 -23 -1 * * -222 -158 -64 4 -127 56 2 ♦ 1 368 220 Sept.................. 3 16 -13 5 22 -30 -12 * 2 334 182 Oct................... -196 -91 -105 -33 -51 4 -27 * 2 291 203 Nov.................. -1 3 -4 -10 15 -2 -9 — 1 1 Dec.®............................ 349 279 -125 4 -129 -22 -74 -5 -31 — 1 4 1971—Jan.®................ -317 -197 -120 2 -84 -10 -30 * 2 Note.—Data represent the money credit balances and Feb.®.............. -35 -4 -31 -21 27 -8 -30 * 1 money debit balances appearing on the books of reporting 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. □ APRIL 1971 21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 22. MATURITY OF EURO DOLLAR AND FOREIGN BRANCH HOLDINGS OF SPECIAL EXPORT-IMPORT DEPOSITS IN FOREIGN BANK SECURITIES BRANCHES OF U.S. BANKS (Amounts outstanding; in millions of dollars) (End of month; in billions of dollars) Wednesday Amount Wednesday Amount Wednesday Amount 1970 1971 Maturity of liability 1966 1970 1970—Cont. Nov. Dec. Jan. Mar. 30.................... 1,879 Jan. 28.................. 13,605 Nov. 4........................9,024 J S u e n p e t. 2 2 9 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1 , , 4 9 7 5 2 1 F M e a b r . . 2 25 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 1, , 8 0 8 8 5 6 1 1 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 , , 8 7 9 6 2 6 Call......................................... 2 1 . . 0 3 7 0 1 1 . . 3 78 7 1 1 . . 5 7 1 7 Dec. 28.................... 4,036 Apr. 29.................. 11,944 25........................8,435 Other liabilities, maturing J M un ay e 2 2 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 2 2 , ,3 17 4 2 6 Dec. 2........................8,252 i m n on fo th ll s o wi a n f g te r cal r e e n p d o a r r t 1967 9........................8,215 date: Mar. 29.................... 3,412 July 1. 8 .. ............... 1 1 1 1 , , 4 4 0 98 7 2 1 6 3 . . . . . . . . . . . . 7 8, , 3 9 0 0 5 2 2nd.................................. 9 5 . . 0 3 7 2 1 4 0 . . 4 6 6 9 8 5 . . 8 0 5 0 June 28.................... 3,166 1 5 11,517 3 0 ......7,676 3rd................................... 3.23 3.75 3.91 Sept. 27.................... 4,059 2 2 11,235 4th................................... 1.58 1.57 1.51 Dec. 27.................... 4,241 2 9 10,469 1971 5th................................... 1.39 1.33 2.03 Mar. 27.......... 1 .. 9 .. 6 .. 8 .... 4,920 Aug. 2 1 1 5 6 2 9 . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . .. . . . . . . . . . . .. . . . 1 1 1 1 0 0 0 0 , , , , 3 2 3 6 8 1 3 2 7 3 9 9 Jan. 1 2 2 6 3 0 7 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . 7 7 7 , , 4 , , 8 8 5 3 6 2 3 8 1 3 5 1 7 6 9 8 0 t t t t t h h h h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1. . . . . 2 3 2 1 1 9 8 5 4 4 1. . . . . 4 2 1 1 1 6 9 6 6 4 1. . . . . 4 2 2 1 2 8 3 8 3 0 D J S u e e n p c e t . . 2 3 2 1 6 5 . ( . . . . 1 . . . . . / . . . 1 . . . . . / . . . 6 . . . . . . 9 . . . . . ) . . . . . . . . . . . . 7 6 6 , , , 1 2 0 0 0 3 2 4 9 Sept. 1 2 6 . 9 .. . .............. 1 1 1 0 0 0 , , , 2 5 3 2 2 3 0 5 2 Feb. 1 1 3 0 .. . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . 7 6 ,4 , , 8 2 3 7 3 2 1 4 Mat 1 1 u 1 2 r t t i h h ti . . e . . . . s . . . . . . . . o . . . . f . . . . . . m . . . . . . o . . . . . . r . . e . . . . . . . . t . . h . . . . a . . . . . . n . . . . . . . . 1 . . . . . .2 1 1 5 . . 2 2 0 0 . . 2 1 4 4 2 3 10,126 2 4 ......6,667 .60 .53 .54 1969 3 0 9,663 Mar. 3........................6,518 Mar. 26.................... 9,621 Oct. 7.................. 9,830 10........................6,307 27.11 28.10 27.83 June 25..................... 13,269 14.................. 9,589 17........................5,677 Sept. 24.................... 14,349 21.................. 9,595 24........................5,829 Dec. 31..................... 12,805 28.................. 9,297 3 1 ......4,558 Note.—Includes interest-bearing U.S. dollar deposits and direct borrowings of all branches in the Bahamas and of all other foreign branches Note.—The data represent gross liabilities of reporting banks to their branches in for­ for which such deposits and direct borrowings eign countries, and Export-Import bank securities held by foreign branches as follows: $1,000 amount to $50 million or more. million, Jan. 27, 1971—Feb. 24, 1971; and $1,500 million, Mar. 3, 1971 through latest date. Details may not add to totals due to rounding. For back data 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 in custody Payable in dollars foreign currencies End of period Deposits End of United U.S. Govt. Earmarked period Total Short­ Short­ King­ Canada securities1 gold Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom ments 1 ments 1 1968................ 216 9,120 13,066 1969................ 134 7,030 12,311 1968...................... 1,638 1,219 87 272 60 979 280 1970—Mar... 200 9,118 12,270 /l,319 952 116 174 76 610 469 Apr.. . 204 9,154 12,272 \1,454 1,025 161 183 86 663 519 May. . 128 9,754 12,239 June.. 168 10,888 12,240 1970— Feb.'.. .. 1 ,573 1,157 193 144 80 951 372 July... 199 11,803 12,217 Mar. r. . . 1,443 1,047 186 147 63 863 302 Aug... 173 12,489 12,283 Apr.r.... 1,438 1,053 178 142 66 892 270 Sept... 136 13,983 12,611 Mayr.. .. 1,459 1,011 200 138 109 837 331 Oct.... 142 14,458 12,617 Juner.... 1,476 1,041 174 148 112 754 359 Nov... 136 16,196 12,644 Julyr------ 1,423 1,009 181 159 74 752 309 Dec... 148 16,226 12,926 Aug.r.... 1,276 868 164 151 94 662 297 Sept.r . . . 1,375 889 183 177 126 668 382 1971—Jan.... 129 16,206 12,958 Oct.r.... 1,455 942 177 177 159 641 477 Feb... 147 18,033 12,981 Nov.r . . . 1,488 976 171 175 166 628 524 Mar... 201 20,534 13,057 Dec.r.... 1,066 642 133 170 121 363 440 1971—Jan............ 1,257 842 124 178 114 511 410 1 U.S. Treasury bills, certificates of indebtedness, notes, and bonds; includes securities payable in foreign currencies. 1 Negotiable and other readily transferable foreign obligations payable on demand or having a contractual maturity of not more than 1 year from the date on which the hel N d o f t o e r .— in E t x e c rn lu a d ti e o s n a d l e p a o n s d i ts r e a g n io d n a U l .S or . ga G n o iz v a t, t io s n e s c . u r E it a ie r s ­ obl 2 i g D a a ti t o a n o n w a th s e i t n w c o u r l r i e n d e s b f y o r t t h h e i s f d or a e te ig d n i e f r f . er because of changes in reporting coverage. marked gold is gold held for foreign and international Figures on the first line are comparable in coverage with those shown for the preceding accounts and is not included in the gold stock of the date; figures on the second line are comparable with those shown for the following date. United States. 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

APRIL 1971 o 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 Dec. Mar. June Sept. Dec. Mar. June Sept. Europe: Austria..................................................................................... 4 3 4 6 5 7 8 9 Belgium-Luxembourg......................................................... 65 72 71 66 59 60 58 54 Denmark................................................................................. 3 3 3 3 16 16 17 16 Finland.................................................................................... 2 1 1 1 7 8 8 13 France..................................................................................... 137 127 156 141 122 155 176 154 Germany, Fed, Rep. of...................................................... 218 193 164 166 219 172 174 192 Greece...................................................................................... 4 3 3 3 19 19 27 28 Italy.......................................................................................... 85 83 85 70 155 169 173 160 Netherlands............................................................................ 90 110 116 121 64 72 72 62 Norway................................................................................... 4 5 5 6 17 12 13 13 Portugal................................................................................... 10 6 5 10 10 14 18 14 Spain........................................................................................ 59 55 47 48 77 78 72 73 Sweden..................................................................................... 38 29 31 35 32 27 27 25 Switzerland............................................................................. 129 157 157 183 45 47 37 45 Turkey...................................................................................... 3 2 2 3 12 12 11 13 United Kingdom.................................................................. 430 556 635 641 999 1,198 1,081 1,010 Yugoslavia............................................................................. 1 2 1 1 18 19 15 17 Other Western Europe....................................................... 21 19 21 21 12 11 12 9 Eastern Europe..................................................................... 1 2 3 5 22 17 20 24 Total................................................................................ 1,304 1,428 1,509 1,532 1,909 2,111 2,020 1,932 Canada......................................................................................... 226 204 204 213 821 638 685 696 Latin America Argentina................................................................................ 9 11 15 10 54 55 62 61 Brazil........................................................................................ 18 13 14 17 86 97 100 107 Chile.......................................................................................... 12 10 11 11 41 42 37 42 Colombia................................................................................. 7 6 5 6 33 36 37 37 Cuba.......................................................................................... * * * * 1 1 1 1 Mexico..................................................................................... 17 24 21 28 151 149 141 149 Panama.................................................................................... 4 8 5 5 19 19 19 18 Peru.......................................................................................... 12 10 6 6 30 34 37 29 Uruguay.................................................................................. 5 5 5 5 7 8 6 5 Venezuela................................................................................ 25 23 28 14 58 69 65 72 Other L.A. republics........................................................... 43 27 28 35 90 92 102 97 Bahamas and Bermuda...................................................... 31 46 57 89 65 83 158 139 Neth. Antilles and Surinam............................................. 2 4 38 24 6 7 8 10 Other Latin America.......................................................... 4 5 6 5 17 25 20 23 Total................................................................................ 190 190 240 255 658 718 791 790 Asia: Hong Kong............................................................................ 8 7 8 8 11 13 17 19 India.......................................................................................... 20 27 37 41 37 36 41 42 Indonesia................................................................................. 5 5 7 7 12 11 17 14 Israel......................................................................................... 14 15 17 21 36 34 23 21 Japan........................................................................................ 144 133 114 135 255 296 310 314 Korea........................................................................................ 2 1 2 1 28 27 50 29 Philippines.............................................................................. 9 6 7 7 38 32 33 32 Taiwan..................................................................................... 3 4 4 8 19 23 29 27 Thailand.................................................................................. 3 3 3 4 15 15 15 13 Other Asia.............................................................................. 27 26 28 47 119 113 126 145 Total................................................................................ 235 228 228 282 570 601 660 657 Africa: Congo (Kinshasa)................................................................ 2 3 14 15 4 4 5 4 South Africa.......................................................................... 14 19 19 24 30 28 35 29 U.A.R. (Egypt)..................................................................... 7 1 2 2 9 9 10 11 Other Africa.......................................................................... 29 33 37 51 46 47 49 48 Total................................................................................ 52 56 72 90 88 87 99 92 Other countries: Australia................................................................................. 61 65 70 75 61 65 85 71 All other................................................................................. 7 6 6 5 10 13 14 15 Total................................................................................ 68 71 76 80 71 78 100 86 International and regional.................................................... * * * * * 1 2 1 Grand total................................................................... 2,075 2,179 2,329 2,453 4,119 4,234 4,357 4,253 Note.—Reported by exporters, importers, and industrial and com­ mercial concerns and other nonbanking institutions in the United States. Data exclude claims held through U.S. banks, and intercompany accounts between U.S. companies and their foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ APRIL 1971 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 i l n l a a b r l s e cu P fo r a r r y e i e n a n i b g c l n i e es Total P d a o y i l n a la b r l s e D ba e n p k o s s i a ts b r w o i a t d h Other in reporter’s name 1966—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.......................... f 1.371 1,027 343 2,946 2,529 201 216 Dec.1...................... { 1,386 1,039 347 3,011 2,599 203 209 1968—Mar......................... 1,358 991 367 3,369 2,936 211 222 June......................... 1,473 1,056 417 3,855 3,415 210 229 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......................... 1,613 1,263 350 4,023 3,316 429 278 Sept......................... 1,797 1,450 346 3,874 3,222 386 267 Dec.......................... ( 1,786 1,399 387 3,710 3,124 221 365 Dec. i...................... { 2,075 1,629 446 4,119 3,500 241 379 1970—Mar......................... 2,179 1,689 490 4,234 3,703 218 313 June......................... 2,329 1,803 526 4,357 3,773 236 349 Sept......................... 2,453 1,928 525 4,253 3,653 297 303 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 End of period lia T b o il t i a ti l es Country or area Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th l e l r 1966—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............................. f 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............................. f 1,725 2,215 152 433 496 172 73 388 141 249 69 42 Dec.1......................... X 2,191 2,332 152 443 537 174 77 417 142 269 75 46 1970— Mar............................ 2,252 2,714 159 735 549 178 74 455 158 286 71 47 June........................... 2,506 2,727 161 712 557 175 65 475 166 286 76 54 Sept............................ 2,746 2,856 157 720 597 177 63 584 144 283 73 58 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

APRIL 1971 □ MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Argentina Austria Belgium Canada Ceylon Denmark Finland (peso) (schilling) (franc) (dollar) (rupee) (krone) (markka) (pound) (dollar) 196 6 .48690 223.41 i 111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 196 7 .30545 111.25 3.8688 2.0125 92.689 20.501 14.325 229.553 196 8 .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 196 9 .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 197 0 3 26.589 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 1970—Mar. 28.504 111.83 3.8663 2.0133 93.212 16.770 13.340 23.748 Apr., 28.500 111.84 3.8651 2.0127 93.207 16.770 13.325 23.748 May, 28.500 111.73 3.8614 2.0140 93.195 16.770 13.324 23.748 June, 27.241 111.45 3.8618 2.0142 496.273 16.770 13.334 23.748 July. 24.934 111.12 3.8670 2.0146 96.872 16.770 13.330 23.748 Aug. 24.936 110.99 3.8638 2.0145 97.890 16.770 13.329 23.748 Sept. 24.888 110.87 3.8684 2.0145 98.422 16.770 13.331 23.748 Oct.. 24.874 110.97 3.8698 2.0146 97.890 16.775 13.331 23.736 Nov. 24.864 111.11 3.8676 2.0147 98.014 16.792 13.336 23.722 Dec. 24.836 111.12 3.8681 2.0137 98.276 16.792 13.354 23.722 1971—Jan.. 24.829 111.82 3.8665 2.0145 98.831 16.792 13.361 23.722 Feb. 24.831 112.38 3.8651 2.0148 99.261 16.792 13.359 23.722 Mar. 24.835 112.42 3.8670 2.0145 99.367 16.792 13.368 23.722 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 re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p en an ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ s r) 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 7 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1970....................................................................... 18.087 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 1970—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........................................................... 18.120 27.537 13.219 239.06 .15893 .27826 32.308 8.0056 27.694 Aug........................................................... 18.109 27.537 13.212 238.77 .15928 .27915 32.287 8.0056 27.775 Sept........................................................... 18.112 27.537 13.211 238.53 .16005 .27935 32.314 8.0056 27.785 Oct............................................................ 18.104 27.531 13.217 238.74 .16052 .27948 32.395 8.0056 27.781 Nov........................................................... 18.120 27.544 13.231 239.03 .16064 .27956 32.402 8.0056 27.793 Dec........................................................... 18.107 27.437 13.229 239.06 .16039 .27959 32.382 8.0056 27.763 1971—Jan............................................................ 18.119 27.496 13.269 240.58 .16045 .27932 32.515 8.0056 27.820 Feb........................................................... 18.122 27.594 13.311 241.78 .16036 .27969 32.615 8.0056 27.814 Mar........................................................... 18.129 27.538 13.304 241.87 .16063 .27971 32.616 8.0056 27.816 New Zealand South Switz­ United Period (pound) (dollar) 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 (ra fr n ic d a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e f r r l a a n n c d ) (p K d o i o u n m n g d ­ ) 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 1970....................................................................... 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1970—Mar......................................................... 111.94 14.001 3.5072 139.82 1.4268 19.232 23.202 240.58 Apr........................................................... 111.96 14.001 3.5021 139.83 1.4274 19.233 23.244 240.61 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 Sept........................................................... 110.98 13.994 3.4886 138.62 1.4287 19.225 23.219 238.53 Oct............................................................ 111.08 13.993 3.4893 138.74 1.4290 19.282 23.090 238.74 Nov.......................................................... 111.22 13.996 3.4924 138.91 1.4290 19.324 23.155 239.03 Dec........................................................... 111.23 14.021 3.4919 138.93 1.4290 19.340 23.187 239.06 1971—Jan............................................................ 111.94 14.003 3.5000 139.81 1.4290 19.365 23.227 240.58 Feb........................................................... 112.50 14.001 3.5031 140.51 1.4290 19.332 23.266 241.78 Mar........................................................... 112.54 14.010 3.5019 140.56 1.4290 19.369 23.254 241.87 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 German 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 □ APRIL 1971 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of March 31, 1970 Rate Country 1970 1971 as of Mar. 31, Per Month 1971 cent effective Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Argentina............................... 6.0 Dec. 1957 6.0 Austria.................................... 5.0 Jan. 1970 5.0 Belgium................................. 7.5 Sept. 1969 7.0 6.5 6.0 6.0 Brazil...................................... 20.0 July 1969 20.0 Burma..................................... 4.0 Feb. 1962 4.0 Canada................................... 8.0 July 1969 7.5 7.0 6.5 6.0 5.25 5.25 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 8.0 8.0 Ecuador.................................. 8.0 Jan. 1970 8.0 El Salvador........................... 4.0 Aug. 1964 4.0 Finland.................................. 7.0 Apr. 1962 7.0 France.................................... 8.0 Oct. 1969 7.5 7.0 6.5 6.5 Germany, Fed. Rep. of... 7.5 Mar. 1970 7.0 6.5 6.0 6.0 Ghana.................................... 5.5 Mar. 1968 5.5 Greece.................................... 6.0 July 1969 6.0 Honduras............................... 3.0 Jan. 1962 3.0 Iceland.................................... 9.0 Jan. 1966 9.0 India........................................ 5.0 Mar. 1968 6.0 6.0 Indonesia............................... 9.0 Aug. 1963 9.0 Iran.......................................... 8.0 Aug. 1969 8.0 Ireland.................................... 7.81 Mar. 1970 7.19 7.31 7.31 Israel....................................... 6.0 Feb. 1955 6.0 Italy......................................... 5.5 Mar. 1970 5.5 Jamaica.................................. 6.0 May 1969 6.0 Japan...................................... 6.25 Sept. 1969 6.0 5.75 5.75 Korea...................................... 26.0 June 1969 24.0 23.0 23.0 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.................................. 4.5 Sept. 1969 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 3.75 3.75 South Africa......................... 5.5 Aug. 1968 6.5 6.5 Spain....................................... 6.5 Mar. 1970 6.25 6.25 Sweden................................... 7.0 July 1969 6.5 6.5 Switzerland........................... 3.75 Sept. 1969 3.75 Taiwan.................................... 10.8 May 1969 9.8 9.8 Thailand................................ 5.0 Oct. 1959 5.0 Tunisia.................................... 5.0 Sept. 1966 5.0 Turkey.................................... 7.5 May 1961 9.0 9.0 United Arab Rep. (Egypt) 5.0 May 1962 5.0 United Kingdom................ 7.5 Mar. 1970 7.0 7.0 Venezuela.............................. 5.5 June 1969 5.0 5.0 Vietnam.................................. 7.0 Mar. 1970 18.0 18.0 l Note.—Rates shown are mainly those at which the central bank either agricultural purposes, 7 per cent for bank acceptances for industrial discounts or makes advances against eligible commercial paper and/or purposes, and 10 per cent for advances to cover shortages in legal reserves; govt, securities for commercial banks or brokers. For countries with Honduras—Rate shown is for advances only. more than one rate applicable to such discounts or advances, the rate Indonesia—Various rates depending on type of paper, collateral, com­ shown is the one at which it is understood the central bank transacts modity involved, etc.; the largest proportion of its credit operations. Other rates for some Japan—Penalty rates (exceeding the basic rate shown) for borrowings of these countries follow: from the central bank in excess of an individual bank’s quota; Argentina—3 and 5 per cent for certain rural and industrial paper, de­ Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ pending on type of transaction; tion, import substitution industries and manufacture of exports; 8 per Brazil—8 per cent for secured paper and 4 per cent for certain agricultural cent for other agricultural, industrial and mining paper; paper; Philippines—6 per cent for financing the production, importation, and dis­ Chile—17 per cent for forestry paper, preshipment loans and consumer tribution of rice and corn and 7.75 per cent for credits to enterprises en­ loans, 18 per cent for selective and special rediscounts, 19.5 per cent for gaged in export activities. Preferential rates are also granted on credits to cash position loans, and 23.5 per cent for construction paper beyond a rural banks; and basic rediscount period. A fluctuating rate applies to paper covering the Venezuela—2 per cent for rediscounts of certain agriculture paper, 4Vi acquisition of capital goods. per cent for advances against government bonds, and 5 Vi per cent for Colombia—5 per cent for warehouse receipts covering approved lists of rediscounts of certain industrial paper and on advances against promissory products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent notes or securities of first-class Venezuelan companies. for rediscounts in excess of an individual bank’s quota; Vietnam—10 per cent for export paper; treasury bonds are rediscounted Costa Rica—5 per cent for paper related to commercial transactions at a rate 4 percentage points above the rate carried by the bond; and (rate shown is for agricultural and industrial paper); there is a penalty rate of 24 per cent for banks whose loans exceed quan­ Ecuador—5 per cent for special advances and for bank acceptances for titative ceilings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ MONEY RATES; ARBITRAGE A 91 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n s ls u t , h ry s1 D m a 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 ll s n s u t , h ry s D m a d o y a n - y e to y - a B l d l e o a p w n o o k n a s e n i r t c s s e ’ D m a o d y n a - y e to y - 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 r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - d P is r r i c a v o t a e u t n e t 1968—Dec............... 5.96 5.31 7.26 6.80 5.99 5.00 8.22 2.75 1.84 4.65 4.96 3.75 1969—Dec............... 7.15 6.95 8.49 7.64 6.75 5.84 8.97 4.42 4.81 5.55 5.98 4.21 1969—Dec............... 7.78 7.78 8.88 7.70 6.90 6.00 10.38 5.75 8.35 6.00 7.11 4.75 1970—Mar............... 7.35 7.35 8.60 7.27 6.97 5.56 9.47 7.00 9.55 6.00 7.04 r4.94 Apr............... 6.81 6.82 8.30 6.94 6.26 5.23 9.02 7.00 9.68 6.00 5.57 5.25 May.............. 6.51 6.66 8.06 6.82 6.03 5.00 8.90 7.00 9.23 6.00 7.07 5.25 June.............. 5.90 5.98 8.06 6.87 6.03 5.00 9.35 7.00 8.76 6.00 6.92 5.25 July.............. 5.79 6.00 8.07 6.82 6.01 5.00 8.57 6.75 8.86 6.00 6.96 5.25 Aug............... 5.66 5.74 8.06 6.81 6.08 5.00 8.13 6.75 7.85 6.00 6.03 5.25 Sept............... 5.44 5.51 8.06 6.82 5.84 5.00 8.13 6.75 9.15 6.00 6.31 5.25 Oct................ 5.25 5.24 8.06 6.81 5.93 5.00 7.82 6.75 7.43 6.00 6.89 5.25 Nov............... 4.74 4.52 8.06 6.81 5.81 5.00 7.30 6.25 8.44 5.75 4.33 5.25 Dec............... 4.47 5.07 8.06 6.82 5.95 5.00 7.46 5.75 7.52 5.91 6.73 5.25 1971—Jan................ 4.59 5.25 8.06 6.79 5.84 5.00 6.46 5.75 7.61 5.60 4.46 5.25 Feb................ 4.51 4.90 8.06 6.75 6.08 5.00 5.75 7.32 5.05 5.41 5.25 Mar............... 3.33 3.48 8.06 6.66 6.12 5.00 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 3 B R a a s t e e d s h o o n w w n e i e s k l o y n a p v r e i r v a a g t e e s s o ec f u d r a it i i l e y s . closing rates. Se N cti o o t n e .— 15 F o o f r S d u e p s p c l r e ip m t e io n n t t a o 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 t a a t t i i o st n ic a s l , 1 F 9 i 6 n 2 a . nce,’ 4 Rate in effect at end of month. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date q K ( u U i a o n U d n t g j i . a . d S t t e o i . t d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o a r d n) d f ( ( p o i + - s o r c ) w u ) o n a u o o r d n n r d t i L n ( o c f N n e a o n v d e f t o o t iv r n e ) qu A i o n s ted Cana q d u A a o U d t j . a . S ti t . o o n U S n ta i t t e e s d C S ( a f p n a o r v a e f o d ad r a) C d f ( ( d o a i + - s o n r c ) w l a ) l o d a a o u o r i r n n a r s d n t i C n ( c a f N e a n o n v a e f t o d t iv r a e ) basis) Canada basis 1970 Oct. 2................ 6.69 5.80 .89 -.92 -.03 5.40 5.26 5.80 -.54 .94 .40 9................ 6.69 6.01 .68 -1.27 -.59 5.41 5.27 6.01 -.74 1.10 .36 16................ 6.69 5.86 .83 -1.14 -.31 5.35 5.21 5.86 -.65 .98 .33 23................ 6.69 5.71 .98 -.96 .02 5.22 5.08 5.71 -.63 .33 -.30 30................ 6.69 5.79 .90 -.83 .07 4.97 4.84 5.79 -.95 .41 -.54 Nov. 6................ 6.69 5.44 1.25 -.89 .36 5.00 4.87 5.44 -.57 .43 -.14 13................ 6.69 5.46 1.23 -1.18 .05 4.86 4.74 5.46 -.72 .49 -.23 20................ 6.69 5.10 1.59 -.86 .73 4.60 4.49 5.10 -.61 .57 -.04 27................ 6.69 5.00 1.69 -.98 .71 4.35 4.25 5.00 -.75 .49 -.26 Dec. 4................ 6.69 4.87 1.82 -.71 1.11 4.46 4.36 4.87 -.51 .65 .14 11................ 6.69 4.80 1.89 -.80 1.09 4.54 4.42 4.80 -.38 .61 .23 18................ 6.69 4.68 2.01 -.68 1.33 4.51 4.35 4.68 -.33 .61 .28 24................ 6.69 4.78 1.91 -.91 1.00 4.40 4.29 4.78 -.49 .00 -.49 31................ 6.69 4.80 1.89 -.92 .97 4.44 4.33 4.80 -.47 -.12 -.59 1971 Jan. 8................ 6.69 4.69 2.00 -.99 1.01 4.55 4.44 4.69 -.25 -.30 -.55 15................ 6.66 4.35 2.31 -1.52 .79 4.65 4.53 4.35 .18 -.63 -.45 22................ 6.66 4.06 2.60 -2.28 .32 4.55 4.44 4.06 .38 -.83 -.45 29................ 6.66 4.08 2.58 -2.72 -.14 4.72 4.60 4.08 .52 -1.11 -.59 Feb. 5............... 6.66 3.97 2.69 -2.70 -.01 4.83 4.71 3.97 .74 -1.03 -.29 11............... 6.66 3.62 3.04 -3.17 -.13 4.83 4.71 3.62 1.09 -1.05 .04 19............... 6.60 3.37 3.23 -3.57 -.34 4.58 4.47 3.37 1.10 -1.01 .09 26............... 6.60 3.33 3.27 -3.13 .14 4.03 3.94 3.33 .61 -1.09 -.48 Mar. 5................ 6.70 3.28 3.42 -3.61 -.19 3.98 3.86 3.28 .58 -.88 -.30 12................ 6.70 3.16 3.54 -3.34 .20 3.30 3.23 3.16 .07 -.18 -.11 19................ 6.57 3.30 3.27 -3.20 .07 3.01 2.95 3.30 -.35 .38 .03 26................ 6.57 3.32 3.25 -2.85 .40 3.05 2.99 3.32 -.33 -.19 -14 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 o APRIL 1971 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Intl. Esti­ End of mated Mone­ United mated Argen­ Aus­ Aus­ Bel­ period total tary States rest of Algeria tina tralia tria gium Brazil Burma Canada Chile world1 Fund world 1964. 43.015 2,179 15,471 25,365 6 71 226 600 1,451 92 84 1,026 43 1965. 243,230 31,869 13,806 27,285 6 66 223 700 1,558 63 84 1,151 44 1966. 43,185 2.652 13,235 27,300 6 84 224 701 1,525 45 84 1,046 45 1967. 41,600 2,682 12,065 26,855 155 84 231 701 1,480 45 84 1,015 45 1968. 40,905 2,288 10,892 27,725 205 109 257 714 1,524 45 84 863 46 1969. 41.015 2,310 11,859 26,845 205 135 263 715 1.520 45 84 872 47 1970—Feb.. 2,435 11,906 205 140 268 714 1.520 45 84 879 47 Mar.. 41,205 2,512 11,903 26,790 205 140 269 714 1.520 45 84 879 47 Apr.. 2,514 11,902 205 140 268 712 1.518 45 84 879 48 May. 2,529 11,900 205 140 269 713 1.520 45 84 880 47 June. 41,170 2,544 11,889 26,735 205 140 270 714 1.520 45 84 880 48 July.. 2,547 11,934 205 140 269 714 1.520 45 84 880 48 Aug.. 2.652 11,817 205 140 269 714 1.518 45 63 880 47 Sept.. 41,180 2,825 11.494 26,860 205 140 282 714 1,530 45 63 880 47 Oct... 2,902 11.495 205 140 283 714 1.528 45 63 880 47 Nov.. 3,224 11,478 205 140 283 714 1.528 45 63 880 47 Dec.. *285 4,339 11,072 ^25]875' 191 140 239 714 1.470 45 63 791 47 1971—Jan.... 4,380 11,040 191 140 240 714 1.470 45 63 791 47 Feb.p. 4,400 11,039 191 240 714 1,468 45 42 791 Ger­ E pe n r d i o o d f lo C m o b ­ ia m D a e r n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 196 4 58 92 85 3,729 4,248 77 247 141 112 2,107 304 196 5 35 97 84 4,706 4,410 78 281 146 110 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 2,923 356 196 9 26 89 45 3,547 4.079 130 243 158 193 2,956 413 1970—Feb., 27 89 45 3.544 4.079 120 243 158 151 2.978 469 Mar. 27 89 45 3.544 4.079 120 243 158 151 2.978 469 Apr., 27 89 45 3.544 4.079 120 243 158 151 2.978 469 May 27 89 45 3,541 4.079 120 243 158 151 2.981 472 June 26 89 45 3.543 4.080 120 243 158 151 2.982 472 July. 26 89 45 3.543 4.080 120 243 158 151 2.983 473 Aug. 26 89 45 3.537 4.080 120 243 158 151 2.983 474 Sept. 26 89 45 3.537 4.081 119 243 148 151 2.983 530 Oct.. 26 65 45 3.537 4.081 119 243 148 151 2.983 530 Nov. 18 65 45 3,533 4.081 117 243 131 144 2,981 532 Dec. 17 65 29 3.532 3,980 117 243 131 144 2,887 532 1971—Jan.. 17 65 29 3.532 3,979 114 243 131 143 2,886 532 Feb. 3 17 65 29 3,531 3,978 99 243 131 143 2,885 534 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- N la e n th d e s r- N w o ay r­ P s a ta k n i­ 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 4 48 183 17 7 169 34 1,688 31 53 67 23 523 78 196 5 52 182 68 2 158 21 1,756 31 53 67 38 576 73 196 6 67 193 68 1 109 21 1.730 18 53 65 44 643 69 196 7 136 193 68 31 166 21 1,711 18 53 20 60 699 69 196 8 122 288 85 66 165 21 1,697 24 54 20 62 856 119 196 9 86 288 85 63 169 21 1,720 25 54 25 45 876 119 1970—Feb.. 86 288 85 63 170 21 1.730 27 54 26 46 882 119 Mar.. 86 288 85 63 170 21 1.730 27 54 40 47 890 119 Apr.. 86 288 85 63 170 21 1.730 27 54 40 49 890 119 May. 86 288 85 63 171 21 1 ,730 27 54 40 50 890 119 June. 86 288 85 63 171 21 1 ,730 27 54 40 50 890 119 July.. 86 288 85 63 171 21 1.750 27 54 40 53 890 119 Aug.. 86 288 85 63 171 21 1.751 27 54 40 54 901 119 Sept.. 86 288 85 63 176 21 1,801 34 54 40 56 902 119 Oct.., 86 288 85 63 176 21 1,801 33 54 40 59 902 119 Nov.. 86 288 85 63 176 21 1,832 23 54 40 59 902 119 Dec.. 86 288 85 48 176 21 1,787 23 54 56 902 119 1971 _jan... 86 288 85 48 21 1,812 23 54 58 119 Feb.P 86 85 48 21 1,812 23 54 59 119 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 □ GOLD RESERVES AND PRODUCTION A 93 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions of dollars) Bank E pe n r d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g ed ­ U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l le . ­ ments 4 196 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 -349 196 9 1,115 784 226 2,642 82 92 117 93 1,471 165 403 51 -480 1970— 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 July.., 954 784 225 2.670 82 92 127 93 165 404 52 -519 Aug.., 920 534 225 2.720 82 92 126 93 165 404 52 -311 Sept.., 921 534 225 2.720 82 92 126 93 1,454 165 404 52 -303 Oct... 879 534 225 2.720 82 92 126 93 165 404 52 -308 Nov.., 788 534 225 2.720 82 92 126 93 161 384 52 -305 Dec.. . 666 498 200 2,732 82 92 126 85 1 j 349 162 384 52 -282 1971—Jan... 632 498 200 2.731 82 92 126 85 162 384 32 -173 Feb.?. 632 498 200 2.731 92 126 162 384 32 -173 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 produc­ Congo tion 1 A So fr u ic th a Ghana s ( h K a i s n a ­ ) U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra i g ca u ­ a Co b l i o a m­ India Japan P p h in il e ip s ­ t A ra u l s ia ­ o A th l e l r 1964.................................. 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 1965............................ 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 1966.................................. 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 1967.................................. 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 1968.................................. 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 1969p................................ 1,420.0 1,090.7 24.8 6.0 60.1 89.1 6.3 3.7 7.7 3.4 23.7 20.0 24.5 60.0 1970—Jan....................... 92.8 7.5 .5 .5 .2 2.1 1.7 Feb...................... 88.4 6.5 .6 .8 .3 1.9 1.8 Mar..................... 94.3 7.1 .6 .5 .3 2.1 2.6 Apr...................... 92.8 6.6 .5 .6 .3 1.8 1.8 May.................... 94.5 7.0 .6 .3 2.2 1.7 June............. 96.6 1.7 7.2 .6 .3 2.0 1.7 July..................... 95.2 2.0 6.8 .6 .3 1.6 Aug..................... 96.3 2.2 6.3 .7 1.6 Sept..................... 96.2 2.2 6.6 .7 Oct...................... 96.6 6.9 Nov..................... 6.5 Dec...................... 6.8 1971—Jan....................... 6.8 1 Estimated; excludes U.S.S.R., other Eastern European countries, China Mainland, and North Korea. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 94 BANKS AND BRANCHES □ APRIL 1971 NUMBER IN OPERATION ON DECEMBER 31, 1970 Commercial and mutual savings banks Number maintaining branches or additional offices1 Commercial Commercial Mutual Mutual State savings savings Total Member Nonmember Total Member Nonmember Total Total Non­ Non­ Non- Non­ Na­ State In­ in­ In­ in­ Na­ State In­ in­ In­ in­ tional sured sured sured sured tional sured sured sured sured United States 2........... 14,181 13,688 4,621 1,147 7,735 185 165 4,294 3,994 1,684 450 1,840 20 213 87 Alabama...................... 272 272 89 20 163 89 89 47 37 Alaska........................... 13 11 5 5 7 7 5 2 Arizona........................ 12 12 3 9 9 2 6 Arkansas...................... 250 250 69 167 82 82 33 42 California.................... 152 152 60 75 121 121 52 58 Colorado..................... 270 270 122 17 17 13 3 Connecticut................ 130 61 26 28 90 44 20 20 Delaware..................... 20 18 5 11 11 9 2 5 District of Columbia 14 14 11 2 13 13 10 2 Florida......................... 500 500 215 271 29 29 11 17 Georgia........................ 441 441 62 362 106 106 31 68 Hawaii.......................... 10 10 1 6 8 8 1 6 Idaho............................. 24 24 7 6 11 13 13 4 6 Illinois........................... 1,108 1,108 414 78 613 93 93 56 30 Indiana......................... 411 407 122 63 219 193 193 74 96 Iowa.............................. 666 666 99 50 509 217 217 39 161 Kansas......................... 601 601 171 32 397 67 67 32 28 Kentucky..................... 343 343 80 14 245 135 135 44 83 Louisiana.................... 231 231 49 10 171 133 133 38 86 Maine........................... 75 43 19 6 14 47 32 15 12 15 Maryland.................... 120 115 42 7 65 76 71 31 33 Massachusetts............ 334 162 86 15 57 164 214 121 64 41 87 Michigan..................... 331 331 101 103 125 202 202 71 65 Minnesota................... 730 729 199 24 503 7 7 2 5 Mississippi.................. 182 182 38 6 138 114 114 34 75 Missouri...................... 671 671 98 71 495 93 93 25 52 Montana...................... 140 140 49 41 49 5 5 2 1 Nebraska..................... 441 441 125 11 301 39 39 23 15 Nevada......................... 8 8 4 1 3 6 6 3 2 New Hampshire 104 74 48 1 23 38 30 24 5 New Jersey.................. 237 217 129 33 53 181 169 97 34 12 New Mexico............... 66 66 33 6 27 48 48 24 20 New York................... 433 312 169 76 42 121 285 190 105 22 95 North Carolina......... 98 98 22 2 73 68 68 19 47 North Dakota........... 169 169 42 4 120 51 51 11 38 Ohio.............................. 517 516 217 120 177 279 279 149 74 Oklahoma................... 434 434 203 19 211 57 57 39 15 Oregon......................... 50 49 10 37 30 29 7 22 Pennsylvania.............. 479 471 299 141 259 252 160 14 77 Rhode Island............. 20 13 5 6 20 13 5 6 South Carolina.......... 102 102 19 77 62 62 15 44 South Dakota............ 161 161 33 103 39 39 9 27 Tennessee.................... 308 308 77 214 143 143 60 77 Texas............................ 1,191 1,191 530 603 70 70 18 46 Utah............................. 48 48 10 32 20 20 5 12 Vermont...................... 49 43 26 16 27 25 15 10 Virginia........................ 233 233 101 42 90 151 151 74 24 53 Washington................ 100 91 25 56 56 49 17 5 27 West Virginia............. 200 200 85 35 80 5 5 2 3 Wisconsin.................... 611 608 125 42 437 166 166 35 123 Wyoming.................... 70 70 41 16 2 2 Virgin Islands............ 1 1 1 1 1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

APRIL 1971 d BANKS AND BRANCHES A 95 NUMBER IN OPERATION ON DECEMBER 31, 1970— Continued Branches and additional offices 1 Class of bank Location Commercial banks Mutual savings Outside head office city State banks In Bank­ Total Member Nonmember head ing office facili­ Total city In In In non­ ties 3 Non­ Non­ head contig­ contig­ Na­ State In­ in­ In­ in­ office uous uous tional sured sured sured sured county counties counties United States 2........ 22,508 21,424 12,363 3,642 5,371 48 891 193 7,991 7,031 3,713 3,773 219 Alabama..................... 267 267 188 13 66 149 94 11 13 5 Alaska......................... 57 57 50 7 16 22 11 8 5 Arizona....................... 322 322 216 19 87 105 77 77 63 3 Arkansas................... 163 163 81 20 62 96 61 5 1 1 California.................. 2,994 2,994 ,369 288 332 417 420 611 1,546 37 Colorado................... 10 10 9 1 10 Connecticut............... 586 436 221 118 97 150 148 283 132 23 Delaware................... 98 86 4 38 44 12 16 48 29 5 District of Columbia 103 103 67 29 7 103 2 Florida....................... 14 14 1 13 13 1 19 Georgia....................... 281 281 163 34 84 210 9 8 54 11 Hawaii........................ 138 138 9 127 52 36 2 48 4 Idaho.......................... 155 155 108 28 19 12 12 28 103 1 Illinois......................... 92 92 55 7 30 91 1 6 Indiana....................... 632 632 340 62 230 328 304 1 Iowa............................ 319 319 53 29 237 128 141 50 Kansas........................ 67 67 32 7 28 66 1 2 Kentucky................... 327 327 141 54 132 202 120 5 1 Louisiana................... 392 392 181 36 175 230 150 9 3 2 Maine.......................... 248 224 101 64 59 24 55 100 79 14 2 Maryland................... 558 515 255 68 185 155 130 161 112 10 Massachusetts........... 963 735 429 155 149 193 458 496 8 2 2 Michigan................... 1,205 1,205 561 431 211 536 440 218 11 4 Minnesota................. 11 11 6 5 11 Mississippi................. 345 345 142 190 150 102 “ii 42 Missouri..................... 91 91 23 16 52 91 Montana.................... 4 4 1 2 1 3 Nebraska................... 40 40 24 1 15 40 Nevada....................... 85 85 60 14 11 20 18 13 34 New Hampshire.... 78 62 52 1 9 32 39 7 New Jersey................. 1,055 1,007 680 196 131 283 620 116 36 New Mexico............. 128 128 72 6 50 74 45 8 1 New York................. 2,770 2,429 1,257 1,037 125 341 1,326 778 520 145 North Carolina......... 1,121 1,121 553 2 559 160 106 227 628 North Dakota............ 69 69 10 2 55 11 35 22 1 Ohio............................. 1,298 1,298 744 344 210 588 688 19 Oklahoma................. 55 55 38 3 14 55 Oregon......................... 339 337 250 2 85 2 69 42 60 168 Pennsylvania.............. 1,817 1,723 1,044 242 435 94 357 721 737 2 Rhode Island.............. 239 169 92 69 70 63 96 46 34 South Carolina.......... 411 411 237 3 171 90 59 52 210 South Dakota............. 98 98 58 4 36 15 31 23 29 Tennessee..................... 486 486 276 33 176 307 165 7 7 4 Texas........................... 54 54 6 48 54 20 Utah.............................. 135 135 74 28 33 26 43 19 47 4 Vermont....................... 86 49 37 14 33 30 11 Virginia ........................ 806 806 473 122 211 286 135 175 210 18 Washington................. 610 556 443 42 71 54 211 150 96 153 2 West Virginia............. 5 5 2 3 5 Wisconsin.................... 270 270 64 20 186 50 179 Wyoming..................... 1 1 1 1 Virgin Islands............. 3 1 Excludes banks that have banking facilities only; banking facilities Note.—Each branch and additional office is located in the same State are shown separately; see note 3. as its parent bank except that one national bank in N.J. has one branch 2 Includes one national bank in the Virgin Islands, with eight branches, in Pa., one national bank in Calif, has two branches in Wash, and one in that became a member of the F.R. System in 1957. Ore., one noninsured (unincorporated) bank in N.Y. has one branch in 3 Banking facilities (other than branches) that are provided at military Mass. and one in Pa.; three insured nonmember banks in Puerto Rico have and other Govt, establishments through arrangements made by the Treas­ 14 branches in N.Y. In the table these branches are shown according to ury; they are operated by 152 banks, 77 of which have no other type of their own location rather than that of the parent bank. branch or additional office. 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. Mitchell J. Dewey Daane Sherman J. Maisel Andrew F. Brimmer William W. Sherrill Robert C. Holland, Secretary of the Board J. Charles Partee, Adviser to the Board Robert Solomon, Adviser to the Board Howard H. Hackley, Assistant to the Board Charles Molony, Assistant to the Board Robert L. Cardon, Assistant to the Board David B. Hexter, Assistant to the Board Joseph R. Coyne, Special Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Board John S. Rippey, Special Assistant to the Board OFFICE OF THE SECRETARY DIVISION OF FEDERAL RESERVE BANK OPERATIONS Robert C. Holland, Secretary Kenneth A. Kenyon, Deputy Secretary James A. McIntosh, Director Elizabeth L. Carmichael, Assistant Secretary John N. Kiley, Jr., Associate Director Arthur L. Broida, Assistant Secretary Walter A. Althausen, Assistant Director N ormand R. V. Bernard, Assistant Secretary Donald G. Barnes, Assistant Director Gordon B. Grimwood, Defense Planning Harry A. Guinter, Assistant Director Coordinator and Assistant Secretary P. D. Ring, Assistant Director * Eugene A. Leonard, Assistant Secretary Charles C. Walcutt, Assistant Director William W. Layton, Director of Equal Em­ Lloyd M. Schaeffer, Chief Federal Reserve ployment Opportunity Examiner LEGAL DIVISION DIVISION OF SUPERVISION AND REGULATION Thomas J. O’Connell, General Counsel Frederic Solomon, Director Robert F. Sanders, Assistant General Counsel JBrenton C. Leavitt, Deputy Director Lawrence F. N oble, Assistant General Counsel Frederick R. Dahl, Assistant Director Pauline B. Heller, Adviser Jack M. Egertson, Assistant Director Grasty Crews, II, Adviser Janet O. Hart, Assistant Director DIVISION OF RESEARCH AND STATISTICS John N. Lyon, Assistant Director J S . t C ep h h a e r n le H s . P A ar x t il e r e o , D d, ir A e s c s t o o c r iate Director J T o h h o n m T a . s M A c . C S l i i d n m to an ck , , A A s s s s is is ta ta n n t t D D i i r r e e c c t t o o r r Lyle E. Gramley, Associate Director Tynan Smith, Assistant Director Stanley J. Sigel, Adviser DIVISION OF PERSONNEL ADMINISTRATION M Ke u n r n r e a t y h S . B . W W e i r l n l i i c a k m , s A , A dv d i v s i e s r e r J E o d h w n i n J. J H . J a o r h t n , A so ss n i , s D ta i n r t e c D to ir r e ctor Peter M. Keir, Associate Adviser James L. Pierce, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES James B. Eckert, Assistant Adviser Joseph E. Kelleher, Director Edward C. Ettin, Assistant Adviser Donald E. Anderson, Assistant Director Stephen P. Taylor, Assistant Adviser John D. Smith, Assistant Director Louis Weiner, Assistant Adviser Joseph S. Zeisel, Assistant Adviser OFFICE OF THE CONTROLLER Levon H. Garabedian, Assistant Director John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE § Harry J. Halley, Deputy Controller Robert Solomon, Director DIVISION OF DATA PROCESSING fRoBERT L. Sammons, Associate Director John E. Reynolds, Associate Director Jerold E. Slocum, Director John F. L. Ghiardi, Adviser John P. Singleton, Associate Director A. B. Hersey, Adviser Glenn L. Cummins, Assistant Director Reed J. Irvine, Adviser Joe M. Jackson, Assistant Director Samuel 1. Katz, Adviser Henry W. Meetze, Assistant Director Bernard N orwood, Adviser Richard S. Watt, Assistant Director Ralph C. Wood, Adviser *On leave from the Federal Reserve Bank of St. Louis. Ralph C. Bryant, Associate Adviser |On leave of absence. ^Serves also as Program Director for Banking Structure in Robert F. Gemmill, Associate Adviser the Office of the Secretary. Samuel Pizer, Associate Adviser §Also serves as Program Director for Management Systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 97 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer Monroe Kimbrel Frank E. Morris George H. Clay Sherman J. Maisel J. L. Robertson J. Dewey Daane Robert P. Mayo William W. Sherrill George W. Mitchell Robert C. Holland, Secretary Arthur L. Broida, Deputy Secretary George Garvy, Associate Economist Normand R. V. Bernard, Assistant Secretary Lyle E. Gramley, Associate Economist Charles Molony, Assistant Secretary A. B. Hersey, Associate Economist Howard H. Hackley, General Counsel John E. Reynolds, Associate Economist David B. Hexter, Assistant General Counsel Karl A. Scheld, Associate Economist J. Charles Partee, Economist Robert Solomon, Associate Economist Stephen H. Axilrod, Associate Economist Charles T. Taylor, Associate Economist Robert W. Eisenmenger, Associate Economist Clarence W. Tow, Associate Economist Alan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL John M. Meyer, Jr., second federal reserve district, President A. W. Clausen, twelfth federal reserve district, Vice President Mark C. Wheeler, first federal Gaylord Freeman, seventh federal reserve district RESERVE DISTRICT G. Morris Dorrance, Jr., third federal Allen Morgan, eighth federal reserve district RESERVE DISTRICT John S. Fangboner, fourth federal T. M. Reardon, ninth federal reserve district RESERVE DISTRICT Joseph W. Barr, fifth federal Morris F. Miller, tenth federal reserve district RESERVE DISTRICT Harry Hood Bassett, sixth federal John E. Gray, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Herbert V. Prochnow, Secretary William J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 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 Louis W. Cabot Earle O. Latham New York.....................10045 Albert L. Nickerson Alfred Hayes Roswell L. Gilpatric William F. Treiber Buffalo.......................14240 Norman F. Beach A. A. Maclnnes, Jr. Philadelphia..................19101 Bayard L. England David P. Eastburn D. Robert Yarnall, Jr. David C. Melnicoff Cleveland.......................44101 Albert G. Clay J. Ward Keener Walter H. MacDonald Cincinnati.................45201 Graham E. Marx Fred O. Kiel Pittsburgh.................15230 Lawrence E. Walkley Clyde E. Harrell Richmond......................23261 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 John L. Fraley Jimmie R. Monhollon Atlanta...........................30303 Edwin I. Hatch Monroe Kimbrel John C. Wilson Kyle K. Fossum Birmingham.............35202 W. Cecil Bauer Dan L. Hendley Jacksonville..............32203 Castle W. Jordan Edward C. Rainey Nashville...................37203 Edward J. Boling Jeffrey J. Wells New Orleans............70160 D. Ben Kleinpeter Arthur H. Kantner Chicago.........................60690 Emerson G. Higdon Robert P. Mayo William H. Franklin Ernest T. Baughman Detroit.......................48231 Peter B. Clark Daniel M. Doyle St. Louis.......................63166 Frederic M. Peirce Darryl R. Francis Sam Cooper Dale M. Lewis Little Rock...............72203 A1 Pollard John F. Breen Louisville..................40201 Ronald E. Reitmeier Donald L. Henry Memphis...................38101 C. Whitney Brown Laurence T. Britt Minneapolis..................55480 David M. Lilly Bruce B. Dayton M. H. Strothman, Jr. Helena.......................59601 William A. Cordingley Howard L. Knous Kansas City...................64198 Robert W. Wagstaff 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 Chas. F. Jones Philip E. Coldwell Philip G. Hoffman T. W. Plant El Paso......................79999 Joseph M. Ray Fredric W. Reed Houston....................77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio............78206 W. A. Belcher Carl H. Moore San Francisco...............94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles..............90054 J. Leland Atwood Paul W. Cavan Portland....................97208 Frank Anderson William M. Brown Salt Lake City..........84110 Royden G. Derrick Arthur L. Price Seattle.......................98124 Francis G. Crane 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.) ANNUAL REPORT. SUPPLEMENT TO BANKING AND MONETARY STA­ TISTICS. Sec. 1. Banks and the Monetary Sys­ FEDERAL RESERVE BULLETIN. Monthly. $6.00 per tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. annum or $.60 a copy in the United States and 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 its possessions, Bolivia, Canada, Chile, Colom­ pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. bia, Costa Rica, Cuba, Dominican Republic, $.35. Sec. 9. Federal Reserve Banks. 1965. 36 Ecuador, Guatemala, Haiti, Republic of Hon­ pp. $.35. Sec. 10. Member Bank Reserves and duras, Mexico, Nicaragua, Panama, Paraguay, Related Items. 1962. 64 pp. $.50. Sec. 11. Cur­ Peru, El Salvador, Uruguay, and Venezuela; 10 rency. 1963. 11 pp. $.35. Sec. 12. Money Rates or more of same issue sent to one address, $5.00 and Securities Markets. 1966. 182 pp. $.65. per annum or $.50 each. Elsewhere, $7.00 per Sec. 14. Gold. 1962. 24 pp. $.35. Sec. 15. Inter­ annum or $.70 a copy. national Finance. 1962. 92 pp. $.65. Sec. 16 (New). Consumer Credit. 1965. 103 pp. $.65. FEDERAL RESERVE CHART BOOK ON FINANCIAL INDUSTRIAL PRODUCTION—1957-59 BASE. 1962. AND BUSINESS STATISTICS. Monthly. Annual 172 pp. $1.00 a copy; 10 or more sent to one subscription includes one issue of Historical address, $.85 each. Chart Book. $6.00 per annum or $.60 a copy in the United States and the countries listed above; BANK MERGERS & THE REGULATORY AGENCIES: 10 or more of same issue sent to one address, APPLICATION OF THE BANK MERGER ACT OF $.50 each. Elsewhere, $7.00 per annum or $.70 1960. 1964. 260 pp. $1.00 a copy; 10 or more a copy. sent to one address, $.85 each. BANKING MARKET STRUCTURE & PERFORMANCE HISTORICAL CHART BOOK. Issued annually in Sept. IN METROPOLITAN AREAS: A STATISTICAL Subscription to monthly chart book includes STUDY OF FACTORS AFFECTING RATES ON one issue. $.60 a copy in the United States and BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or countries listed above; 10 or more sent to one more sent to one address, $.40 each. address, $.50 each. Elsewhere, $.70 a copy. THE PERFORMANCE OF BANK HOLDING COM­ THE FEDERAL RESERVE ACT, as amended through PANIES. 1967. 29 pp. $.25 a copy; 10 or more Nov. 5, 1966, with an appendix containing pro­ sent to one address, $.20 each. visions of certain other statutes affecting the Federal Reserve System. 353 pp. $1.25. FARM DEBT. Data from the 1960 Sample Survey of Agriculture. 1964. 221 pp. $1.00 a copy; 10 REGULATIONS OF THE BOARD OF GOVERNORS OF or more sent to one address, $.85 each. 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, 1970. $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 □ APRIL 1971 BANK CREDIT-CARD AND CHECK-CREDIT PLANS. RESERVE ADJUSTMENTS OF THE EIGHT MAJOR 1968. 102 pp. $1.00 a copy; 10 or more sent to NEW YORK CITY BANKS DURING 1966. 1968. one address, $.85 each. 29 pp. INTEREST RATE EXPECTATIONS: TESTS ON YIELD DISCOUNT POLICY AND OPEN MARKET OPERA­ SPREADS AMONG SHORT-TERM GOVERNMENT TIONS. 1968. 23 pp. SECURITIES. 1968. 83 pp. $.50 a copy; 10 or more sent to one address, $.40 each. THE REDESIGNED DISCOUNT MECHANISM AND THE MONEY MARKET. 1968. 29 pp. SURVEY OF FINANCIAL CHARACTERISTICS OF CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or SUMMARY OF THE ISSUES RAISED AT THE ACA­ more sent to one address, $.85 each. DEMIC SEMINAR ON DISCOUNTING. 1968. 16 pp. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 321 pp. $1.00 a copy; 10 or more sent to one A REVIEW OF RECENT ACADEMIC LITERATURE address, $.85 each. ON THE DISCOUNT MECHANISM. 1968. 40 pp. REPORT OF THE JOINT TREASURY-FEDERAL RE­ SERVE STUDY OF THE U.S. GOVERNMENT DISCOUNT POLICY AND BANK SUPERVISION. SECURITIES MARKET. 1969. 48 pp. $.25 a copy; 1968. 72 pp. 10 or more sent to one address, $.20 each. THE LEGITIMACY OF CENTRAL BANKS. 1969. JOINT TREASURY-FEDERAL RESERVE STUDY OF 24 pp. THE GOVERNMENT SECURITIES MARKET: STAFF STUDIES—PART 1 (papers by Cooper, Bernard, SELECTIVE CREDIT CONTROL. 1969. 9 pp. and Scherer). 1970. 86 pp. $.50 a copy; 10 or more sent to one address, $.40 each. SOME PROPOSALS FOR A REFORM OF THE DIS­ COUNT WINDOW. 1969. 40 pp. (Limited supplies, in mimeographed or similar form, of staff papers other than those con­ RATIONALE AND OBJECTIVES OF THE 1955 RE­ tained in Part 1 are available upon request for VISION OF REGULATION A. 1969. 33 pp. single copies. See p. 48 of main report for a list of such papers.) AN EVALUATION OF SOME DETERMINANTS OF MEMBER BANK BORROWING. 1969. 29 pp. REAPPRAISAL OF THE FEDERAL RESERVE DIS­ COUNT MECHANISM: ACADEMIC VIEWS ON IMPROVING THE FEDERAL REPORT OF A SYSTEM COMMITTEE. 1968. 23 RESERVE DISCOUNT MECHANISM. 1970. pp. $.25 a copy; 10 or more sent to one ad­ 172 pp. dress, $.20 each. CAPITAL AND CREDIT REQUIREMENTS OF AGRI­ REPORT ON RESEARCH UNDERTAKEN IN CON­ CULTURE, AND PROPOSALS TO INCREASE NECTION WITH A SYSTEM STUDY. 1968. 47 AVAILABILITY OF BANK CREDIT. 1970. 160 pp. pp. $.25 a copy; 10 or more sent to one address, $.20 each. FINANCIAL INSTABILITY REVISITED: THE ECO­ NOMICS OF DISASTER. 1970. 87 pp. Limited supply of the following papers relating to the Discount Study, in mimeographed or similar form, available upon request for single copies: STAFF ECONOMIC STUDIES EVOLUTION OF THE ROLE AND FUNCTIONING Studies and papers on economic and financial sub­ OF THE DISCOUNT MECHANISM. 1968. 65 pp. jects that are of general interest in the field of economic research. A STUDY OF THE MARKET FOR FEDERAL FUNDS. 1968. 47 pp. Summaries only printed in the Bulletin. THE SECONDARY MARKET FOR NEGOTIABLE (Limited supply of mimeographed copies of full CERTIFICATES OF DEPOSIT. 1968. 89 pp. text available upon request for single copies.) THE DISCOUNT MECHANISM IN LEADING IN­ MEASURES OF INDUSTRIAL PRODUCTION AND DUSTRIAL COUNTRIES SINCE WORLD WAR II. FINAL DEMAND, by Clayton Gehman and Cor­ 1968. 216 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 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. A REVISED INDEX OF MANUFACTURING CAPACITY, Staff Economic Study by Frank de Leeuw with CONSUMER SAVINGS AND THRIFT INSTITUTIONS, Frank E. Hopkins and Michael D. Sherman. by Edward C. Ettin and Barbara Negri Opper. Nov. 1966. 11 pp. June 1970. 12 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN OPTIMAL CHOICE OF MONETARY POLICY INSTRU­ U.S. CAPITAL MARKETS, Staff Economic Study MENTS IN A SIMPLE STOCHASTIC MACRO by Daniel H. Brill with Ann P. Ulrey. Jan. MODEL, by William Poole. Sept. 1970. 20 pp. 1967. 14 pp. UNCERTAINTY AND STABILIZATION POLICIES FOR REVISED SERIES ON COMMERCIAL AND INDUS­ A NONLINEAR MACROECONOMIC MODEL, by TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. Franklin R. Shupp. Dec. 1970. 23 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SALES OPERATING POLICIES OF BANK HOLDING COM­ FINANCE COMPANIES. Feb. 1967. 5 pp. PANIES—PART 1, by Robert J. Lawrence. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. Apr. 1971. 82 pp. 1967. 26 pp. Printed in full in the Bulletin. BANK FINANCING OF AGRICULTURE. June 1967. (Reprints available as shown in following list.) 23 pp. EVIDENCE ON CONCENTRATION IN BANKING MARKETS AND INTEREST RATES, Staff Eco­ REPRINTS nomic Study by Almarin Phillips. June 1967. 11 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by THE PUBLIC INFORMATION ACT—ITS EFFECT ON Stephen H. Axilrod. Oct. 1961. 17 pp. MEMBER BANKS. July 1967. 6 pp. SEASONALLY ADJUSTED SERIES FOR BANK INTEREST COST EFFECTS OF COMMERCIAL BANK CREDIT. July 1962. 6 pp. UNDERWRITING OF MUNICIPAL REVENUE BONDS. Aug. 1967. 16 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC MODEL, Staff Economic Study by Frank de MEASURES OF MEMBER BANK RESERVES. July Leeuw and Edward Gramlich. Jan. 1968. 30 pp. 1963. 14 pp. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. CHANGES IN BANKING STRUCTURE, 1953-62. 1968. 7 pp. Sept. 1963. 8 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN REVISION OF BANK DEBITS AND DEPOSIT TURN­ 1960-67. Apr. 1968. 23 pp. OVER SERIES. Mar. 1965. 4 pp. MONETARY RESTRAINT AND BORROWING AND TIME DEPOSITS IN MONETARY ANALYSIS, Staff CAPITAL SPENDING BY LARGE STATE AND Economic Study by Lyle E. Gramley and LOCAL GOVERNMENTS IN 1966. July 1968. Samuel B. Chase, Jr. Oct. 1965. 25 pp. 30 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BULLETIN □ APRIL 1971 REVISED SERIES ON BANK CREDIT. Aug. 1968. SDR's IN FEDERAL RESERVE OPERATIONS AND 4 pp. STATISTICS. May 1970. 4 pp. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. BANKING AND MONETARY STATISTICS, 1969. 1968. 18 pp. Selected series of banking and monetary statistics for 1969 only. Mar. and July 1970. 18 pp. HOW DOES MONETARY POLICY AFFECT THE ECONOMY? Staff Economic Study by Maurice INFLATION IN WESTERN EUROPE AND JAPAN. Mann. Oct. 1968. 12 pp. Oct. 1970. 13 pp. REVISION OF THE MONEY STOCK. Dec. 1970. BUSINESS FINANCING BY BUSINESS FINANCE 23 pp. COMPANIES. Oct. 1968. 13 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. MANUFACTURING CAPACITY: A COMPARISON OF 11 pp. TWO SOURCES OF INFORMATION, Staff Eco­ nomic Study by Jared J. Enzler. Nov. 1968. BALANCE OF PAYMENTS PROGRAM: REVISED 5 pp. GUIDELINES FOR BANKS AND NONBANK FINAN­ CIAL INSTITUTIONS. Jan. 1971. 12 pp. MONETARY RESTRAINT, BORROWING, AND CAP­ ITAL SPENDING BY SMALL LOCAL GOVERN­ MONETARY AGGREGATES AND MONEY MARKET MENTS AND STATE COLLEGES IN 1966. Dec. CONDITIONS IN OPEN MARKET POLICY. Feb. 1968. 30 pp. 1971. 26 pp. REVISION OF CONSUMER CREDIT STATISTICS. BANK FINANCING OF MOBILE HOMES. Mar. 1971. Dec. 1968. 21 pp. 4 pp. FINANCIAL DEVELOPMENTS IN THE FOURTH HOUSING PRODUCTION AND FINANCE. Mar. 1969. QUARTER OF 1970. Mar. 1971. 6 pp. 7 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX­ OUR PROBLEM OF INFLATION. June 1969. 15 pp. CHANGE OPERATIONS. Mar. 1971. 19 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ RESPONSE OF STATE AND LOCAL GOVERNMENTS nomic Study by Frank de Leeuw and Edward TO VARYING CREDIT CONDITIONS. Mar. 1971. Gramlich. June 1969. 20 pp. 24 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, JULY- REVISION OF WEEKLY SERIES FOR COMMERCIAL OCTOBER 1970. Apr. 1971. 13 pp. BANKS. Aug. 1969. 5 pp. CHANGES IN BANK LENDING PRACTICES, 1970. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. Apr. 1971. 5 pp. 20 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT RECENT CHANGES IN STRUCTURE OF COMMER­ CIAL BANKING. Mar. 1970. 16 pp. POSITION. Apr., 1971. 14 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 Demand deposits: Agricultural loans of commercial banks, 24, 26 Adjusted, banks and the monetary system, 19 Arbitrage, 91 Adjusted, commercial banks, 15, 18, 25 Assets and liabilities (See also Foreigners, claims on, Banks, by classes, 11, 20, 25, 29 and liabilities to): Subject to reserve requirements, 18 Banks, by classes, 20, 24, 25, 26, 37 Turnover, 15 Banks and the monetary system, 19 Deposits (See also specific types of deposits): Corporate, current, 49 Accumulated at commercial banks for payment of Federal Reserve Banks, 12 personal loans, 23 Automobiles: Adjusted, and currency, 19 Consumer instalment credit, 54, 55, 56 Banks, by classes, 11, 20, 25, 29, 37 Production index, 58, 59 Euro-dollars, 86 Federal Reserve Banks, 12, 86 Postal savings, 19, 25 Bank credit proxy, 18 Subject to reserve requirements, 18 Bankers’ balances, 25, 28 Discount rates (See Interest rates) (See also Foreigners, claims on, and liabilities to) Discounts and advances by Reserve Banks, 4, 12, 13, Banks and branches, number, by class and State, 94 15 Banks and the monetary system, 19 Dividends, corporate, 48, 49 Banks for cooperatives, 39 Dollar assets, foreign, 75, 81 Bonds (See also U.S. Govt, securities): New issues, 45, 46, 47 Earnings and hours, manufacturing industries, 65 Yields and prices, 34, 35 Employment, 62, 64, 65 Branch banks: Euro-dollar deposits in foreign branches of Liabilities of U.S. banks to their foreign U.S. banks, 86 branches, 30, 86 Number, by class and State, 95 Farm mortgage loans, 50, 51 Brokerage balances, 85 Federal finance: Business expenditures on new plant and equipment, 49 Cash transactions, 40 Business indexes, 62 Receipts and expenditures, 41 Business loans (See Commercial and industrial loans) Treasury operating balance, 40 Federal funds, 8, 24, 26, 30, 33 Federal home loan banks, 39, 51 Capacity utilization, 62 Federal Housing Administration, 50, 51, 52, 53 Capital accounts: Federal intermediate credit banks, 39 Banks, by classes, 20, 25, 30 Federal land banks, 39 Federal Reserve Banks, 12 Federal National Mortgage Assn., 39, 53 Central banks, 90, 92 Federal Reserve Banks: Certificates of deposit, 30 Condition statement, 12 Coins, circulation, 16 U.S. Govt securities held, 4, 12, 15, 42, 43 Commercial and industrial loans: Federal Reserve credit, 4, 6, 12, 15 Commercial banks, 24, 32 Federal Reserve notes, 12, 16 Weekly reporting banks, 26, 31 Federally sponsored credit agencies, 39 Commercial banks: Finance company paper, 33, 37 Assets and liabilities, 20, 24, 25, 26 Financial institutions, loans to, 24, 26 Consumer loans held, by type, 55 Float, 4 Deposits at, for payment of personal loans, 23 Flow of funds, 70 Loans sold outright, 32 Foreign: Number, by classes, 20, 94 Currency operations, 12, 14, 75, 81 Real estate mortgages held, by type, 50 Deposits in U.S. banks, 5, 12, 19, 25, 29, 86 Commercial paper, 33, 37 Exchange rates, 89 Condition statements (See Assets and liabilities) Trade, 73 Construction, 62, 63 Foreigners: Consumer credit: Claims on, 82, 83, 86, 87, 88 Instalment credit, 54, 55, 56, 57 Liabilities to, 30, 76, 77, 79, 80, 81, 86, 87, 88, Noninstalment credit, by holder, 55 Consumer price indexes, 62, 66 Consumption expenditures, 68, 69 Gold: Corporations: Certificates, 12, 13, 16 Sales, profits, taxes, and dividends, 48, 49 Earmarked, 86 Security issues, 46, 47 Net purchases by U.S., 74 Security yields and prices, 34, 35 Production, 93 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 92 Currency and coin, 5, 10, 25 Stock, 4, 19, 75 Currency in circulation, 5, 16, 17 Government National Mortgage Association, 53 Customer credit, stock market, 36 Gross national product, 68, 69 Hours and earnings, manufacturing industries, 65 Debits to deposit accounts, 15 Housing permits, 62 Debt (See specific types of debt or securities) Housing starts, 63 )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 □ APRIL 1971 Income, national and personal, 68, 69 Real estate loans: Industrial production index, 58, 62 Banks, by classes, 24, 27, 37, 50 Instalment loans, 54, 55, 56, 57 Delinquency rates on home mortgages, 52 Insurance companies, 38, 42, 43, 51 Mortgage yields, 53 Insured commercial banks, 22, 23, 24, 94 Type of holder and property mortgaged, 50, 51, Interbank deposits, 11, 20, 25 52, 53 Interest rates: Reserve position, basic, member banks, 8 Business loans by banks, 32 Reserve requirements, member banks, 10 Federal Reserve Banks, 9 Reserves: Foreign countries, 90, 91 Central banks and govts., 92 Money market rates, 33 Commercial banks, 25, 28, 30 Mortgage yields, 53 Federal Reserve Banks, 12 Prime rate, commercial banks, 33 Member banks, 5, 6, 11, 18, 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 Sales finance companies, loans, 54, 55, 57 Investments (See also specific types of investments): Saving: Banks, by classes, 20, 24, 27, 28, 37 Flow of funds series, 70 Commercial banks, 18 National income series, 69 Federal Reserve Banks, 12, 15 Savings and loan assns., 38, 43, 51 Life insurance companies, 38 Savings deposits (See Time deposits) Savings and loan assns., 38 Savings institutions, principal assets, 37, 38 Securities (See also U.S. Govt, securities): Labor force, 64 Federally sponsored agencies, 39 Loans (See also specific types of loans): International transactions, 84, 85 Banks, by classes, 20, 24, 26, 27, 37 New issues, 45, 46, 47 Commercial banks, 18, 20, 23, 24, 26, 27, 31, 32 Silver coin and silver certificates, 16 Federal Reserve Banks, 4, 6, 12, 15 Special Drawing Rights, 4, 12, 13, 19, 72, 75 Insurance companies, 38, 51 State and local govts.: Insured or guaranteed by U.S., 50, 51, 52, 53 Deposits, 25, 29 Savings and loan assns., 38, 51 Holdings of U.S. Govt, securities, 42, 43 New security issues, 45, 46 Ownership of securities of, 24, 28, 37, 38 Manufacturers: Yields and prices of securities, 34, 35 Capacity utilization, 62 State member banks, 22, 23, 94 Production index, 59, 62 Stock market credit, 36 Margin requirements, 10 Stocks: Member banks: New issues, 46, 47 Assets and liabilities, by classes, 20, 24 Yields and prices, 34, 35 Borrowings at Reserve Banks, 6, 12 Deposits, by classes, 11 Tax receipts, Federal, 41 Number, by classes, 20, 94 Time deposits, 11, 18, 19, 20, 25, 29 Reserve position, basic, 8 Treasury cash, Treasury currency, 4, 5, 16, 19 Reserve requirements, 10 Treasury deposits, 5, 12, 40 Reserves and related items, 4, 18 Treasury operating balance, 40 Mining, production index, 59, 62 Mobile home shipments, 63 Money rates (See Interest rates) Unemployment, 64 Money stock and related data, 17, 19 U.S. balance of payments, 72 Mortgages (See Real estate loans and Residential mort­ U.S. Govt, balances: gage loans) Commercial bank holdings, 25, 29 Mutual funds (See Investment companies) Consolidated condition statement, 19 Mutual savings banks, 19, 29, 37, 42, 43, 50, 94 Member bank holdings, 18 Treasury deposits at Reserve Banks, 5, 12, 40 U.S. Govt, securities: National banks, 22, 23, 94 Bank holdings, 19, 20, 24, 27, 37, 42, 43 National income, 68, 69 Dealer transactions, positions, and financing, 44 National security expenditures, 41, 68 Federal Reserve Bank holdings, 4, 12, 15, 42, 43 Nonmember banks, 23, 24, 25, 94 Foreign and international holdings, 12, 81, 84, 86 International transactions, 81, 84 New issues, gross proceeds, 46 Open market transactions, 14 Open market transactions, 14 Outstanding, by type of security, 42, 43, 45 Ownership of, 42, 43 Payrolls, manufacturing index, 62 Yields and prices, 34, 35 Personal income, 69 United States notes, 16 Postal savings, 19, 25 Utilities, production index, 59, 62 Prices: Consumer and wholesale commodity, 62, 66 Veterans Administration, 50, 51, 52, 53 Security, 35 Prime rate, commercial banks, 33 Weekly reporting banks, 26 Production, 58, 62 Profits, corporate, 48, 49 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis