Federal Reserve Bulletin, 1971-06
FEDERAL RESERVE BULLETIN * * * * * * * JUNE 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 6 □ VOLUME 57 □ JUNE 1971 CONTENTS 425 Interest Rates, Credit Flows, and Monetary Aggregates Since 1964 441 Staff Economic Studies: Summaries 445 Member Bank Income, 1970 452 Two Key Issues of Monetary Policy 456 Survey of Demand Deposit Ownership 468 Bank Rates on Business Loans— Revised Series 478 Statements to Congress 503 Record of Policy Actions of the Federal Open Market Committee 512 Law Department 546 Announcements 548 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 111 Board of Governors and Staff A 112 Open Market Committee and Staff; Federal Advisory Council A 113 Federal Reserve Banks and Branches A 114 Federal Reserve Board Publications A 121 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
Interest Rates, Credit Flows, and Monetary Aggregates Since 1964 INTEREST RATES in securities markets have fluctuated very sharply over the past half-decade, although the trend in yields has generally been upward. In 1969 and early 1970, when inflation ary expectations were strong and bank credit expansion was cur tailed, market rates reached levels as high as any in U.S. history. Then during 1970 and early 1971, as economic activity slowed and monetary policy eased, interest rates dropped more sharply than in most earlier periods of decline. Most recently, interest rates have tended up again, reversing some of their preceding decline. These recent yield increases— which occurred in the aftermath of a rapid expansion of gross SELECTED INTEREST RATES national product during the first quarter of 1971—were accom In per cent panied by large credit demands in long-term financial markets. June Rates h E i a g r h l s ie r 1 lo 1 w 97 s 1 1 1 1 9 5 7 , 1 They also came during a time when a flow of private short-term Short-term: investment funds into foreign money market centers—indicating Treasury 7.87 3.38 4.95 bills, (Jan. (Mar.) in part expectations of upward revaluations of some European 3-mo. 70) Commercial 8.84 4.19 5.50 currencies—had exerted some pressures to bring short-term U.S. paper, 4 to (Dec. (Mar.) 6 mos. 69) rates somewhat closer into alignment with higher interest rates Long-term: 10-yr. U.S. 7.91 5.70 6.70 in foreign centers. Govt.2 (May (Mar.) 70) Corporate 9.12 7.00 37.90 The factors that account for the behavior of interest rates at Aaa, new (July (Feb.) issues 3 70) any point in time are highly complex—reflecting, in addition to 1 Monthly averages. current developments, lagged responses to past events and expec 2 Estimated from yield curve. a Estimated by First National City tations of future events. To try to sort out more persisting under Bank, except latest figure which is Federal Reserve estimate for week ending June 18, 1971. lying relationships among interest rates, credit flows, and mone- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
426 FEDERAL RESERVE BULLETIN □ JUNE 1971 tary aggregates, this article reviews interest rate movements from 1964 to early 1971. The review starts with the years just prior to the escalation of U.S. involvement in the Vietnamese conflict—that is, early 1964 to mid-1965. In those years, while short-term rates had risen appreciably from the lows reached in the 1960-61 recession, interest rates in general remained remarkably stable by present standards, particularly in long-term markets. Moreover, the levels of rates prevailing—with long-term bonds generally yielding somewhat above 4 per cent and rates in short-term markets run ning a bit lower—were not unusual in terms of previous U.S. financial history. After mid-1965, however, interest rates began to trend sharply upward and to show much greater volatility. The 6-year span since mid-1965 divides logically into several subperiods that represent fairly distinct patterns of increasing or decreasing yield movements. Data in Chart 1 and Table 1 differentiate these various sub periods and show summary measures of interest rate changes and some other economic data. The interest rates selected for these exhibits are two relatively sensitive market series showing bor rowing costs for major corporations—namely, the rate on 4- to 6-month prime commercial paper and the average rate on newly issued corporate bonds of Aaa quality. These two series are broadly representative of yields in short- and long-term financial TABLE 1 SUMMARY DATA FOR SEVEN PERIODS OF INTEREST RATE CHANGES End 1963 to Early 1971 In per cent unless otherwise indicated Item Ql1964- Q31965- 1st H Q3 1967- 2nd H Year Ql1970- Q2 1965 Q4 1966 1967 Q2 1968 1968 1969 Ql1971 Interest rate levels, end of period: Commercial paper................... 4.38 6.00 4.72 6.08 5.96 8.62 4.59 Corporate Aaa, new issues.... 4.48 5.76 5.58 6.56 6.69 8.41 7.05 Interest rate changes: Commercial paper................... .47 1.62 -1.28 1.36 -.12 2.66 -4.03 Corporate bonds...................... .14 1.28 -.18 .98 .13 1.72 -1.36 Annual rates of increase: Real GNP................................. 5.6 6.2 1.1 5.0 3.5 1.6 .4 GNP deflator........................... 1.8 2.8 2.4 4.2 4.3 5.0 5.4 Current-dollar GNP............... 7.4 9.2 3.6 9.4 7.9 6.8 5.8 Money stock (Mi)................... 4.1 3.5 6.8 7.2 7.7 3.1 6.2 Average level during period: High-employment budget sur plus (in billions of dollars at annual rates)......................... 3.9 -5.4 -13.0 -15.5 -4.4 3.9 -.4 Note.—Based on quarterly data for terminal quarters in each period, except growth rate of Ml— which is calculated from averages for terminal months in the periods—and high-employment budget surplus—which shows average levels for the entire span of each period. Data for yields on Aaa newly issued corporate bonds are First National City Bank estimates and data for high-employment budget surplus (NIA basis) are unpublished estimates by the Division of Research and Statistics at the Federal Reserve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 427 markets, although any single interest rate series on a particular type of debt will, of course, occasionally show divergencies from the general pattern of rate changes. The yield on new corporate bonds was selected as the most representative measure for long-term market yields. Interest rates on long-term Treasury bonds tended to move more sluggishly during this time span, because the AlA per cent interest rate ceiling foreclosed new Treasury debt offering of long maturity during most of the period under review. To facilitate compari sons between long- and short-term rates on debt of comparable quality, the short-term rate used in the analysis is the rate on commercial paper. SKETCH OF SUBPERIODS 11 SUBPERIODS showing different patterns of yield movement PER CENT 1965 1967 1969 '71 Monthly averages. First National City Bank estimates of average investor yield on new issues of high-grade corporate bonds adjusted to Aaa basis; prime commercial paper, dealer offering rates. The relevant subperiods of rising and falling interest rates can be readily identified on Chart 1. The large extent of interest rate stability during the period from early 1964 to mid-1965 has already been mentioned, although on balance yields did tend to rise slowly during this period. Market yields rose sharply in the next period—from mid-1965 through the so-called “credit crunch” of 1966. As is usually the case, changes in long-term rates were in the same direction as short-term rates, but were smaller. Most yields reached their peaks at the height of the credit crunch in the fall of 1966. These interest rate increases partly reflected an unusually rapid pace of economic growth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
428 FEDERAL RESERVE BULLETIN □ JUNE 1971 during late 1965 and early 1966. Defense contracts and payrolls mounted quickly, on top of spending demands by private eco nomic sectors that had been stimulated by the income tax cuts of 1964. While the growth rate of real economic activity became less rapid over the course of 1966, readily available manpower and capital resources had been absorbed by that time and infla tionary pressures had set in. To deal with the thrust of these excess demands, monetary policy became restrictive. The succeeding subperiod of declining interest rates covers the first half of 1967. In this period growth of economic activity slowed briefly, partly in reaction to the earlier credit crunch and a temporary suspension of investment tax credits that took place in late 1966. Interest rate declines were also encouraged by a shift to an expansive monetary policy. In short-term markets, the general rate decline continued through mid-1967, but in bond markets, rates reached their lows as early as February 1967 and then started moving up. This latter upturn was partly anticipa tory; it reflected concern among market participants that the income surtax requested by the administration would not be enacted and this would lead to large Federal deficit spending on top of a renewal of strength already expected for the private economy. At the same time, the volume of long-term borrowing —in contrast to short-term financing—increased substantially (Table 2) as borrowers tried to make up for capital market financing foregone during the credit crunch and to anticipate possible future shortages of funds. Expectations of rising interest rates were in fact confirmed after mid-1967, and rates continued to advance through the next subperiod. Excess demand in the domestic economy and adverse expectations engendered by events in the foreign exchange and gold markets—beginning with the devaluation of sterling in late 1967—were among the factors that encouraged interest rates to rise above the peaks reached earlier during the 1966 credit crunch. The long-delayed passage of the Revenue and Expenditure Control Act in June 1968—which provided for a 10 per cent surcharge on income taxes and a ceiling on Federal spending in the fiscal year 1969—considerably improved the outlook of credit market participants. A temporary decline in interest rates oc curred during the summer and early fall of 1968. As in the first half of 1967, however, the rate decline in long-term markets was reversed sooner than that in short-term markets. With borrowers Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 429 TABLE 2 NET BORROWING IN SHORT- AND LONG-TERM MARKETS Selected Periods, 1964 to 1971 In billions of dollars at seasonally adjusted annual rates unless otherwise indicated Item Ql1964- Q31965- 1st H Q31967- 2nd H Year Ql1970- Q2 1965 Q41966 1967 Q2 1968 1968 1969 Ql1971* Total net borrowing1................... 61.4 62.9 62.8 84.8 96.5 73.4 83.3 Less: Funds supplied by Federal Reserve................................. 3.4 3.7 6.0 5.5 -.4 4.2 7.1 Equals: Funds supplied by private sectors:................................ 58.0 59.1 56.8 79.3 96.9 69.2 76.2 In short-term markets2............ 17.4 27.1 20.5 38.0 36.0 38.9 18.8 In long-term markets—by type of instrument:................... 40.6 32.0 36.3 41.3 60.9 30.3 57.4 Corporate & foreign bonds3. 7.6 10.7 15.9 16.4 15.9 14.8 25.0 Mortgages, net of Govt, housing-credit support.... 24.7 20.1 20.9 21.7 25.9 18.7 20.7 State and local bonds.......... 5.6 5.7 8.0 5.7 13.0 5.0 10.1 U.S. Govt, and Govt.-sponsored agencies, over 5 years4................................ 2.7 -4.5 -8.4 -2.5 6.1 -8.2 1.5 Share (in per cent) of total supply by private sectors: Short-term................................ 30.0 45.9 36.1 47.9 37.2 56.2 24.7 Long-term................................. 70.0 54.1 63.9 52.1 62.8 43.8 75.3 1 For derivation, see Table 3. 2 Includes mainly nonfinancial borrowing in the form of bank loans, consumer credit, open market paper, State and local securities maturing within 1 year, and U.S. Government as well as Govt.-sponsored agency debt maturing within 5 years. 3 In addition to bonds issued by nonfinancial sectors, includes bonds issued by sales finance com panies and commercial banks. The proceeds of such bond sales by financial sectors are netted out in calculating short-term borrowing on the assumption that the proceeds are used to finance short-term debt. .; 4 Abrupt shifts in maturity classification—that arise when securities pass from the over-5-year to the under-5-year category as a result of the passage of time—have been phased in gradually. The smoothing technique spreads the shift over a 2-year period. Source.—Federal Reserve flow of funds accounts. p preliminary. seeking to cover previously delayed financing as credit market conditions eased, the volume of long-term debt offerings ex panded sharply (Table 2). In part, this enlarged volume of capi tal market financing also came about when borrowers sought funds in anticipation of future needs, once it became evident that the mid-1968 fiscal actions were not fully curbing excess spending demands. During 1969, interest rates moved to new record highs as the sharp increases in rates that had begun in late 1968 continued throughout the year with only minor interruptions. The year 1969 had larger rate increases, both absolutely and in relative terms, than any of the other periods considered here. These rate in creases were accompanied by a restrictive monetary policy that resulted in a marked slowdown in the growth rate of bank credit and the monetary aggregates. At the same time the high employ ment Federal budget moved into surplus—a process which had already begun after mid-1968. While initially this shift in fiscal policy had seemed to have little effect, it subsequently contributed to the dampening of aggregate demand, and its effect on interest rates was in the direction of moderating upward rate pressures. Economic expansion came to a halt in late 1969, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
430 FEDERAL RESERVE BULLETIN □ JUNE 1971 following year was marked by recessive tendencies in output, sales, and employment. This slowdown was counteracted by measures that made fiscal policy more expansive—such as the expiration of the surtax—by a quickening of growth rates in monetary aggregates, and by substantial decreases in interest rates that continued until late winter 1971; all this helped to set the stage for the resumption of economic growth that has been observable in recent months. Although the most dramatic interest rate decreases occurred in the short-term sector, long-term rates also declined significantly during this last period, but only after first climbing further to reach new highs toward the middle of 1970—as pressures to rebuild depleted corporate liquidity posi tions had mounted in the spring of 1970. Thus the declines in long-term rates started much later than those of short-term rates. Also, the levels of long-term rates were still unusually high rela tive to short-term rates in the spring of 1971. INTEREST RATES AND In explaining interest rate trends over long periods of time, econo CREDIT MARKET FLOWS mists usually stress the influence of expected rates of return on investment in physical capital and the willingness of the various economic sectors to supply savings. A consideration of these vari ables was implicit in some of the preceding discussion of GNP and Federal budget developments. However, for short cyclical periods analysts often relate interest rate movements to shifting demand and supply conditions in the credit markets or in the stock of liquid assets, such as money. Evaluating the relationship of interest rate movements in the seven subperiods to changing demand and supply conditions in the credit markets is a complex undertaking. It is difficult to dis tinguish between shifts in the demand for and shifts in the supply of loanable funds in the ex post data on fund flows. For example, an increased volume of credit may at times signify an upward shift in demand for funds that would lead to higher interest rates, whereas at other times an expanded flow of credit may reflect an increased supply that would lead to lower interest rates. Even without a separate identification of demand and supply fac tors, however, an examination of developments in credit flows may still contribute to an understanding of interest rate behavior. Total borrowing. Table 3 shows the major borrowing flows at annual rates during the seven subperiods under discussion. Total net borrowing (line F) reflects major types of borrowing by non financial sectors in the economy. Total credit expansion was sub- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 431 stantial in all of the subperiods under review, ranging between 7.9 and 10.9 per cent of current-dollar GNP. The flows appear to be largest in the periods when the economy was in the early or middle phase of an upswing, as in 1964-early 1965 and the two periods from mid-1967 to the end of 1968. Relative to GNP, credit flows were smallest in 1969 and in the latter half of 1966 (Table 3, footnote 5), when the economy was nearing the end of an upswing and when monetary policy was most restrictive. TABLE 3 BORROWING IN MAJOR CREDIT MARKETS Selected Periods, 1964 to 1971 In billions of dollars at seasonally adjusted annual rates unless otherwise indicated Line Item Ql1964- Q31965- 1st H Q31967- 2nd H Year Ql1970- Q21965 Q4 1966 1967 Q21968 1968 1969 Ql 1971 ? A U.S. Govt, securities......... 5.0 2.8 4.0 20.5 7.2 -3.6 9.2 B Sponsored credit agencies.. 1.1 3.8 -3.0 3.3 2.2 8.8 5.7 C Short-term non-Federal 1.. 20.2 21.0 18.3 18.5 33.3 31.4 15.0 D Long-term non-Federal 2.. 36.2 38.7 40.7 47.0 56.3 46.0 58.6 E Less: Govt, housing-credit support 3......................... 1.1 3.5 -2.9 4.5 2.4 9.2 5.2 F Equals: Total net borrow ing by nonfinancial sec tors and sponsored credit agencies 4.............. 61.4 62.9 62.8 84.8 96.5 73.4 83.3 G Total borrowing as per cent of GNP 5........................ 9.5 8.6 8.1 10.2 10.9 7.9 8.5 1 Borrowing by nonfinancial sectors in the form of bank loans, consumer credit, open market paper, and State and local securities under 1 year. 2 Borrowing by nonfinancial sectors in the form of State and local securities other than short-term, corporate and foreign bonds, and mortgages. 3 Net mortgage purchases of U.S. budget agencies, Federal National Mortgage Association, and Federal land banks; and Federal home loan bank loans to savings and loan associations. 4 Borrowing by Government-sponsored credit agencies is included as a component of total borrowing and is shown in line B. However, to the extent that such borrowing finances home mortgage lending it is deducted in line E, since total mortgage borrowing has been included in line D. 5 During the last half of 1966, total borrowing amounted to 6.7 per cent of GNP. Source.—Federal Reserve flow of funds accounts. p preliminary. In the periods when tendencies of recession and incipient re covery were present, as in early 1967 and in the 1970-71 period, credit flows were slightly larger than in the immediately preceding phases of expansion. It may also be noted that the large increase in Federal borrowing in fiscal year 1968—at a time of substantial budget deficit at high employment—was reflected in an expansion of total credit flows and was succeeded by an unusually large ex pansion of non-Federal borrowing in the latter half of 1968. Given the pattern of relatively small credit flows and rapidly rising interest rates found in the late expansion phase of the busi ness cycle, and intermediate-size credit flows accompanied by falling interest rates in the two periods when the economy slowed substantially, it is apparent that no simple relation can be formu lated between the size of total credit flows and movements in interest rates. The explanation would seem to lie in an interaction of supply and demand conditions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
432 FEDERAL RESERVE BULLETIN □ JUNE 1971 Although total demands for credit tend to shrink when the economy weakens, monetary policy at such times has generally contributed to easier credit supply conditions. Hence total bor rowing tended to expand even while the economy was still slug gish. Lagged policy effects and the upturn of economic activity have tended to lead to a more rapid increase in total credit flows once economic expansion was well under way. Finally, in the late expansion phases, total borrowing showed declines while interest rates reached high levels, and credit availability was most re stricted in reaction to efforts by monetary policy to restrain excess demands. Sectors supplying funds. There is a general association of in terest rate movements with the sectoral composition of the supply of funds in credit markets, as discussed below and shown in Table 4. In periods when commercial banks, thrift institutions, and the Federal Reserve System supplied the predominant por tion of total credit, interest rates eased or tended to be stable. TABLE 4 SECTORS SUPPLYING FUNDS IN MAJOR CREDIT MARKETS Selected Periods, 1964 to 1971 In billions of dollars at seasonally adjusted annual rates unless otherwise indicated Item Ql1964- Q31965- 1st H Q31967- 2nd H Year Ql 1970- Q2 1965 Q41966 1967 Q21968 1968 1969 Ql 1971* Total net lending (or borrowing). . 61.4 62.9 62.8 84.8 96.5 73.4 83.3 Funds supplied directly by: Federal Reserve Banks........... 3.4 3.7 6.0 5.5 -.4 4.2 7.1 Commercial banks, net1.......... 23.9 20.7 33.9 32.1 54.1 12.2 34.9 Thrift institutions, net2............ 15.2 9.6 16.5 15.4 14.7 10.2 20.3 Foreign3................................... .4 .2 2.4 -.6 3.8 -.3 10.9 All other domestic sectors4. . . 18.5 28.6 4.0 32.4 24.3 47.1 10.1 Share (in per cent) provided by: 5 Federal Reserve, commercial banks, and thrift institu tions ...................................... 69.2 54.1 89.8 62.5 70.9 36.2 74.8 All other domestic sectors.... 30.1 45.5 6.4 38.2 25.2 64.2 12.1 1 Net of bank borrowing in commercial paper market and securities market. Bank borrowing from foreign branches has not been deducted in evaluating funds supplied by commercial banks. 2 Credit market lending by mutual savings banks, savings and loan associations, and credit unions, net of borrowing from commercial banks and Federal home loan banks. 3 Does not include funds lent to U.S. banks by foreign branches, which in the last two periods amounted to $7.0 and $-8.0 billion, respectively. 4 Mainly reflects private domestic nonfinancial sectors (such as households, business, and State and local funds) and insurance companies as well as minor differences between funds lent and borrowed by finance companies, dealers and brokers, and Government-sponsored agencies. 5 The percentages do not add to 100 because the share of foreign net lending has been omitted. Source: Federal Reserve flow of funds accounts. p preliminary. But when other domestic sectors—especially households, non financial business, and State and local governments—had to be attracted into the securities markets to meet borrowers’ demands for funds, interest rates increased. Major shifts of this type in the sources of lending may develop Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 433 initially from either the demand or the supply side of credit. For example, if demands for credit experience an autonomous in crease, market interest rates would tend to rise. Such rate in creases on market securities would need to be large enough to attract additional lending from the “other domestic sectors.” These higher rate levels would tend to make market securities more attractive relative to holdings of deposits. Nominal interest rates on demand deposits are fixed at zero, while rates paid on savings accounts at commercial banks and thrift institutions tend to fluctuate much less than rates on market securities, as illus trated in Chart 2. Moreover, regulated rate ceilings on time and savings deposits have at times constrained the ability of banks and other depositary institutions to offer interest rates on such deposits that are competitive with the market. In the case of depositary institutions specializing in mortgage lending, such as savings and loan associations, competitive interest rates often could not be offered on savings accounts when market interest rates rose, since the earnings of these institutions reflected in large part the lower returns obtained on mortgages that had been acquired before the increase in market interest rates. Rates on SAVINGS ACCOUNTS respond very slowly to market rates PER CENT Quarterly data, except monthly for commercial paper and savings at commercial banks in April and May 1971. Weighted average offering rates on savings and loan accounts estimated by Federal Reserve from the FHLBB quarterly survey. Weighted average interest rates paid on savings deposits by commercial banks in the 7th District. As a result, the more market interest rates rise, the more exten sive the process of “disintermediation” becomes. The recent pat terns of Euro-dollar borrowings by commercial banks from foreign branches can be viewed as an exception to this generaliza tion. In this case, U.S. commercial banks were bidding aggres sively for Euro-dollar loans when interest rates rose rapidly in 1969, thus offsetting some of the curtailment of bank credit. But Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
434 FEDERAL RESERVE BULLETIN □ JUNE 1971 in 1970-71, when U.S. interest rates declined below the levels of foreign rates, banks were repaying large amounts of Euro-dollar borrowing. The nonfinancial domestic sectors attracted to the securities markets in periods of rising rates typically acquire a different type of market instrument from those purchased by thrift institutions and banks; therefore, a particular scarcity of funds tends to de velop for certain types of loans. Mortgage funds, especially, are not readily provided by the nonfinancial sectors; thus housing credit is curtailed when “disintermediation” occurs. Federal and federally sponsored credit programs have ameliorated some of this unevenness of credit flows, as is indicated by the offsetting fluctuations in the volume of housing-credit-support lending by the Government, particularly in periods of general credit restraint such as in 1969 (Table 3). Major shifts in the share of lending being provided by different sectors can also be initiated from the supply side. For example, monetary policy can inject more reserves into the banking system, thus fostering more bank credit and in this way exerting down ward pressures on interest rates, at least in the short run. The domestic nonfinancial sectors are then encouraged to part with securities and to channel their financial assets into deposits and shares at savings institutions. SHORT-TERM INTEREST The process just described—in which the nonfinancial sectors RATES AND MONETARY become important direct lenders in credit markets when interest AGGREGATES rates are rising and high, while banks and savings institutions become more predominant in supplying credit funds when rates are falling and low—is reflected for the most part in movements of the monetary aggregates that measure selected sets of liabilities of banks and thrift institutions. A rough correspondence in movements between measures of credit supplied by banks and thrift institutions and the monetary aggregates is to be expected, since there is a considerable amount of overlap between data taken from the credit side of these insti tutions’ balance sheets and data that represent their major liabili ties. However, the monetary aggregates also measure particular types of liquid assets held by the public, and this is the major focus of the various concepts of money stock. The narrowly defined money stock (Mi)—that is, currency and demand deposits (other than U.S. Government and inter bank)—has the least direct correspondence to credit data on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 435 asset side of the balance sheet, since commercial bank time and savings deposits constitute a major share of the total liabilities of the banking system. However, since the narrowly defined money stock has the special characteristic of comprising the generally accepted medium of exchange, economists have been particularly interested in investigating the association between this type of liquid asset and other economic magnitudes. Short-term market interest rates are frequently considered as the opportunity cost of holding or obtaining money, both for potential financial investors and for borrowers. Borrowers have to pay this rate as the price for money, and lenders can earn this rate if they are willing to give up money. Since short-term debt instruments are relatively free of market price risk, they are also considered “liquid” and hence are good money substitutes. For some types of investors, however, savings accounts may be better substitutes for Mi than are market securities. A 1968 FDIC survey showed that 35 per cent of the dollar amount of demand deposits held by individuals, partnerships, and corpora tions were in accounts smaller than $10,000; for many of these holders savings accounts would tend to be a more realistic alterna tive to demand deposit holdings than short-term marketable instruments. Rates on savings accounts for these holders would be a better measure of the cost of holding money than the yields on short-term market securities. The public’s demand for money balances can be thought of as depending on transaction needs and interest rate levels as well as on a number of other specific influences, some of which are difficult to isolate and will not be considered here. Transaction needs can be represented in a very rough fashion by the currentdollar value of GNP on the simplifying assumption that financial and intermediate transactions that are not included in GNP would tend to grow at a similar rate to GNP. When GNP is divided by the current stock of money, the “income velocity” of money is obtained and this velocity ratio then provides some rough allow ance for the volume of transactions for which money is used. Data for money velocity, as shown in Table 5, permit a direct examination of the relationship between money stock and inter est rates. When velocity increased substantially, during the subperiods in Table 5, short-term interest rates were tending to increase also. In periods when velocity increased only moderately, remained un changed, or declined, short-term interest rates remained about Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
436 FEDERAL RESERVE BULLETIN a JUNE 1971 TABLE 5 CHANGES IN THE INCOME VELOCITY OF MONEY AND SHORT-TERM INTEREST RATE MOVEMENTS Velocity Rate of Movement in Time period of Mil increase in short-term velocity 2 interest rates Q4 1963................. 3.95 Ql 1964-Q2 1965.. 4.16 3.5 slightly increasing Q3 1965-Q4 1966.. 4.50 5.5 increasing 1st H 1967............. 4.46 -.2 decreasing Q3 1967-Q2 1968.. 4.55 2.0 increasing 2nd H 1968........... 4.55 about unchanged Year 1969.............. 4.68 2.9 increasing Ql 1970-Ql 1971.. 4.70 .3 decreasing Q4 1963-Ql 1971.. 4.70 2.4 slightly increasing 1 Terminal quarter GNP, at annual rates, divided by average stock of currency and demand deposits for that quarter. 2 Percentage change at annual rate. unchanged or tended to fall. During the entire period from the end of 1963 to the first quarter of 1971, velocity increased at an annual rate of 2.4 per cent but short-term interest rates at their recent lows were only slightly higher than in late 1963. This may indicate, in a rough manner, that there were some economies in the use of money over this period so that some of the increasing trend in velocity could represent efficiencies in the management of cash balances. Alternatively, some of the increasing trend in velocity could also reflect the general rise in the interest rates paid on time and savings accounts. It should be noted that the relationships among GNP, money stock, and short-term interest rates represent a complex interacn Broad conformity of movement appears despite diversities in J SHORT-TERM RATES PER CENT 1965 1967 1969 '71 Monthly averages except for bank prime rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 437 tion. All of these three variables act on one another rather than having only bilateral relationships. Growth in the money stock has a short-run effect in reducing interest rates, making credit more easily available, and making the asset holdings of the public more liquid. These effects stimulate transactions and GNP. The larger GNP—whether in the form of additional product or higher prices—in turn increases interest rates and money demand. Of course, the presentation in Table 5 has been oversimplified in many respects. Lagged relationships have been neglected, al though most econometric work has found that actions by holders of money to adjust their balances lag behind growth in the vol ume of transactions as well as changes in interest rates. Table 5 thus is merely illustrative of a general approach taken in investi gating the relationship between money stock and interest rates. Expectations represent still other factors that influence the demand for money and short-term interest rates. For instance, expectations about economic developments or about monetary policy influence short-term rates. The strong reaction sometimes observable in short-term rates to changes in the Federal Reserve discount rate, for example, takes place largely because a discount rate change may at times be viewed by the market as an indicator of the likely future course of monetary policy. Inflationary expectations, however, have a smaller impact on short-term rates than on long-term interest rates. To the extent 4 | LONG-TERM RATES exhibit a common trend PER CENT Monthly averages. Seasoned State and local govt, bonds (20 issues, mixed quality), Bond Buyer; FHA series (new homes) on average contract interest rates on conventional first mortgages in primary markets; U.S. Govt, security yields as estimated from yield curve. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
438 FEDERAL RESERVE BULLETIN □ JUNE 1971 that large investors consider deposit holdings and short-term marketable instruments as their major alternatives for the place ment of liquid reserves, neither of these alternative holdings offers protection against inflation. Thus the influence of inflation on short-term interest rates is exerted mainly by the expansion of the current dollar value of transactions, rather than by changing the incentives to substitute between deposits and short-term securities. MOVEMENTS IN LONG- On the average, the level of long-term rates has been historically TERM INTEREST RATES somewhat higher than that of short-term rates due to a preference for liquidity by lenders. In general, long-term market rates have tended to move in the same direction as short-term rates, but their amplitude of change has been smaller. As a result of the greater volatility of short-term rates, long-term rates for instruments that are similar in all respects except maturity have frequently been below the corresponding short-term rates during periods when interest rates were at cyclical peaks, and they have been substantially higher than short-term rates when interest rates were unusually low. This standard pattern of relationships between long- and short term rates prevailed in the period from 1963 to late 1966. As shown in Chart 5, the spreads between long- and short-term rates c SPREADS between long- and short-term 3 rates ALTER OVER TIME PER CENT Based on quarterly averages, except monthly for April and May 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INTEREST RATES SINCE 1964 439 declined significantly during this period as short-term rates were rising. Thereafter, however, the standard relationship did not hold up well. Long-term yields remained higher than short-term interest rates in mid-1968, even though short-term rates had reached a new peak. In 1970 and early 1971, when short-term interest rates were falling, some of the large increase in yield spreads did conform to the usual relationships between long term and short-term rates. However, the extent to which spreads have widened has been unusually large. In summary, it would seem that long-term rates have had an upward shift relative to short-term rates since early 1967 in comparison to their usual historical relationship. The wider spread between short- and long-term rates in recent years is frequently attributed to changed expectations about the future course of prices of goods and services. When entering into financial contracts that terminate many years hence, lenders and borrowers must naturally make some evaluation of the range of possible alternatives over the life of the contract. In making such evaluations during the past few years, investors appear to have become more concerned about expected general price increases. When such concerns are strong, investors believe it to be unprofit able to advance funds to bond markets except at high yields. The pattern of credit demands by borrowers is, of course, also influenced by expectations. In 1970 and early 1971 large de mands for long-term funds by borrowers have contributed to the relatively high levels of long-term yields. As is shown in Table 2, the demand for long-term funds has been unusually large in the period from 1970 to early 1971, especially in comparison to the quantity of short-term funds demanded. As was noted earlier, demands in the long-term sectors of the credit market also had increased substantially in early 1967 and late 1968 when interest rates were declining from their preceding peaks. In these earlier periods the declines in interest rates became short-lived: markets had tightened initially in reaction to backlog and anticipatory borrowing demands in the long-term sector; some what later short-term borrowing demands also had increased due to vigorous expansion of the economy that provided full-poten tial activity and intensified inflationary pressures. Recent yield behavior suggests that inflationary expectations are probably imbedded to a considerable extent in the yield spreads between long- and short-term maturities and to a lesser Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
extent in the level of all interest rates, as already indicated, Invest ors in short-term marketable assets frequently are anxious to maintain the liquidity of their investment, and there are no good outlets for investment of short-term funds that hedge against inflation. Some long-term investors, however, can find alternative inflation-hedged assets, such as corporate equities and real estate —and can also shift temporarily to short-term assets, when they become apprehensive about the risk of capital losses in the bond markets. LOWER-GRADE BONDS still demand sizable yield premiums PER CENT 1.5 MOODYS Baa LESS Aaa ON SEASONED ISSUES 1 0 ----------------------^ 5 0 1963 1965 1967 1969 ’71 Based on quarterly averages, except monthly for April and May 1971. Composite averages of seasoned bonds compiled by Moody’s Investors Service. Another feature of current yield spreads is the large difference between the rates on prime- and lower-grade bonds. The yield spread between Baa-rated corporate bonds and Aaa-rated bonds, in the market for seasoned issues, increased since about the time of the filing for bankruptcy of a major railroad last year (see Chart 6). These spreads usually increase in periods of economic recession when uncertainty increases; during the most recent months—perhaps as a reaction to the signs of economic recovery —these spreads have narrowed. □ 440 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 Board 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 uStaff 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 Sum m aries THE RELATIVE IMPORTANCE OF MONETARY AND FISCAL VARIABLES IN DETERMINING PRICE LEVEL MOVEMENTS: A NOTE Peter S. Rose and Lacy H. Hunt 11—Staff, Federal Reserve Bank of Dallas Published in The Journal of Finance, vol. 26, no. I, March 1971 One of the most perplexing problems of the comparative impact of monetary and recent months has been the persistence of fiscal variables on gross national product and strong inflationary pressures. These pres other measures of business activity. sures have continued despite restrictive In this paper a linear model is constructed monetary measures and a policy of fiscal with expectational, cost, monetary, and fiscal restraint enforced by higher marginal in arguments to explain percentage changes in come tax rates through mid-1970 and a sub the consumer price index and the implicit stantial budget surplus during fiscal 1969. GNP price deflator for the years 1952-68. The persistence of inflationary pressures in The study was intentionally confined to the the face of these restrictive conditions argues period following the Treasury-Federal Re for further study of the importance of mone serve accord in order to escape the con tary and fiscal measures, as well as other straints imposed on discretionary monetary factors, in explaining price level movements. policy by the pegging of interest rates in Surprisingly little work has been done in this the earlier postwar years. The variables area, although considerable research in re used to explain price level movements in cent years has been devoted to measuring cluded labor costs per unit of output in 441 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
442 FEDERAL RESERVE BULLETIN □ JUNE 1971 manufacturing, the monetary base, high- terly periods lagged more than 1 year. In employment Federal expenditures, and a contrast, the monetary variable displayed four-quarter weighted average of past rates only a marginal effect. This result suggests of change in the price level. All were sea that short-term changes in monetary growth sonally adjusted quarterly observations. may have only a mild direct impact on While the results varied somewhat with changes in prices. The expectations proxy the price index used, the fiscal variable was exerted a significant influence when lagged consistently the most important policy vari at least a full year. This result implies that able for price level changes during 1952- a lag of at least 1 year is required for con 68. Moreover, the initial impact of high- sumers to adjust their expectations to current employment Federal expenditures was regis price level changes—a factor that tends to tered quickly and, in the case of consumer counteract stabilization efforts in the short prices, its influence was reasserted in quar run. □ ESTIMATION OF THE INVESTMENT AND PRICE EQUATIONS OF A MACROECONOMETRIC MODEL Robert J. Shiller—Massachusetts Institute of Technology This paper was prepared under a grant from the Social Science Research Council in connection with a continu ing study of the impact of monetary policy directed by the SSRC Subcommittee on Monetary Research. This research effort is sponsored by the Board of Governors of the Federal Reserve System. The paper was presented at a conference of the Subcommittee, Washington, D.C., April 30, 1971. Macroeconometric models have often in tions. The interest rate enters all three cluded investment and price equations that equations through a single expression for the involve either theoretical inconsistencies or cost of capital. contradictory assumptions. This paper dis It is possible to change the investment cusses some of these problems. Then, a equations to eliminate the production func rigorous model is developed that, although tion parameters and rents of other factors it is based on conventional assumptions, is only by adding assumptions beyond that of elaborated further than is usual in certain cost-minimizing behavior. For Jorgenson, respects to point out some of the relation this was the assumption of profit maximiza ships that should obtain among different tion with decreasing returns subject to a equations. horizontal demand function; with Bischoff, An investment function for producers’ the additional assumption was a strict durables, a similar function for producers’ mark-up hypothesis. After discussion, it is structures, and a price equation are all concluded that it would be best to avoid us derived from a-single model of cost-minimiz ing these assumptions. There is no strictly ing behavior. The three equations share a correct way to simplify the price equation. number of parameters: Each equation con On the other hand, as long as one is tains implicitly all the production function willing to consider a joint estimation proce parameters. Each equation involves rents dure for the three equations, there is no of all three factors, which should be com need to simplify the equations. In fact, since puted the same way for the different equa the production function parameters must be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STAFF ECONOMIC STUDIES 443 estimated somewhere and are important to most part encouraging, since the produc the model in simulations, the joint estima tion function estimates are quite reasonable. tion procedure may be justified on efficiency The paper also includes a brief discus grounds even if, for instance, the strict sion of the estimation technique used. The mark-up hypothesis is granted. joint estimation procedure is conventional, The model developed here was made to except that a simple and convenient way of conform, in most respects, to the theoretical implementing it—useful in large models— foundations of the M.I.T.-Penn-S.S.R.C. is employed. The procedure has two stages. (MPS) econometric model of the United The first is ordinary least squares, from States, and the equations were estimated which appropriate columns of the variancefrom data used in that model. The sample covariance matrix, as well as the coefficients was quarterly, extending from 1953 to 1970. and their standard errors, are saved. These Since the assumptions made here are, except single-equation results are then combined, for details, less restrictive than those of the equation by equation, to provide joint esti corresponding equations of the MPS model, mates and their standard errors. The dis the procedure here can also be viewed as tributed lag estimation procedure, which providing estimates of the production func does not parametrize the lag curve, is based tion assumed by the MPS model—no such on first-degree smoothness priors. Such estimate is implicit in the present version Bayesian priors reflect the coherence of the of the MPS model. The results were for the lag shapes that the theory suggests. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Member Bank Income, 1970 Member bank net income after taxes in ment agencies and corporations. Income creased substantially in 1970, although less from investment portfolios accounted for rapidly than the record pace of 1969. De nearly 20 per cent of the increase in member spite the easing of monetary policy in 1970, bank operating revenue in 1970; when net the average rate of return on bank earnings income from trading account is included, assets increased somewhat as compared with the figure rises to 27 per cent. In 1969 in the average in 1969. And with credit condi come from these sources had accounted for tions easier, banks were able to expand their only 6 per cent of the total increase in oper earning base; holdings of both loans and in ating revenue. A major part of the improve vestments rose during the year. In this frame ment in income from investment account in work, total operating income of banks 1970 was the higher average rate of return moved upward. Although operating ex realized on these securities. penses also showed a sizable increase during Operating expenses rose less in dollar the year, the growth in revenue exceeded amount but at a more rapid rate than reve that in expenses, and net income of member nue. All types of expenses registered some banks rose to a level exceeding that in any growth except interest on borrowed money. previous year. With the sharp decline in short-term interest rates in the United States in 1970, many of SUMMARY the largest banks shifted from high-cost Euro-dollar borrowing to domestic borrow The largest single factor in the rise in total operating income at member banks in 1970 ing. By doing so these large banks in particu —as in other recent years—was earnings lar were able to moderate the growth in their from loans, which accounted for about over-all operating expenses. three-fifths of the total increase. In 1969 The expense that ate most heavily into when growth in total bank credit was limited bank profits in 1970 was interest paid on by monetary policy, loan income amounted time and savings deposits. Ceiling rates pay to nearly nine-tenths of the increase in op able on all forms of time and savings de erating revenue. To meet the strong demand posits were raised in early 1970, and in midfor loans by their customers, banks had June the ceiling rates were suspended on liquidated investments, on balance, to pro large-denomination time deposits with ma vide funds for lending. With a slowing of turities of 30 to 89 days. Most member economic activity and a weakening of loan banks quickly responded by increasing their demand in 1970, accompanied by some eas offering rates on these types of deposits. Be ing of monetary policy, banks vigorously cause short-term market rates of interest expanded their holdings of securities of State were declining, commercial banks were able and local governments and U.S. Governto attract huge inflows of deposits, particu larly large negotiable certificates of deposit. Note.—This article was prepared by Caroline H. Bank profits were also dampened by much Cagle of the Board’s Division of Research and larger losses on loans. The provision for loan Statistics. 445 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
446 FEDERAL RESERVE BULLETIN □ JUNE 1971 losses—that portion of loan losses deducted funds sold and securities purchased under re as an expense from current operating sale agreement) to a record level of $19,487 income—rose by 40 per cent in 1970, com million— 10 per cent above 1969, but far pared with an increase of only 11 per cent below the 26 per cent increase registered in in 1969. Actual net loan losses for all mem 1969. Loans to business, to agriculture, and ber banks in 1970 were more than double to consumers (other loans to individuals)— those in 1969. as well as real estate loans—rose by 3 to 5 Most of the remaining growth in operat per cent in 1970, whereas all other loans rose ing costs in 1970 came from higher salaries by nearly 10 per cent (Table 2). The last and wages and employee benefits. These ex group, which includes the amount of Federal panded at about the same rate as in 1969. funds sold and of securities purchased under Taxes applicable to operating income resale agreement, rose by 54 per cent in were 2 per cent lower, and net security losses 1970, reflecting in part a shift in bank bor (after taxes) were nearly 50 per cent less, in rowing from Euro-dollars to Federal funds. 1970 than in 1969. Income from the sale of Federal funds (and Net income (after security losses, extraor securities purchased under resale agree dinary charges, and all taxes) of $3,823 mil ment) rose to $781 million—$132 million, lion was 10.8 per cent higher than in 1969. or 20 per cent above the level of 1969. Relative to equity capital plus reserves, net The average rate of return on all loans income was 10.4 per cent—up somewhat (including Federal funds sold) rose 34 basis from the preceding year. Net income as a points to 7.91 per cent in 1970 (Table 3), percentage of total capital accounts,1 one despite five reductions that moved the prime of the standard bases for comparing net in rate from 8 Vi to 63A per cent. During most come in years prior to 1969 was 11.5 per of the first half of the year the prime rate cent—higher than in any previous year. remained well above the year-earlier level, Cash dividends declared amounted to and it was not until later in the year that $1,754 million in 1970—substantially there was a large dip below the year-earlier above the preceding year. The ratio of divi level. Moreover, there was some increase in dends to equity capital and reserves was the average rate of return on all loans as 4.79 per cent. banks replaced low interest rate loans made prior to 1969 with new loans at 1970 in OPERATING INCOME terest rates and as the large volume of term Member bank operating income rose to loans—those with maturities over 1 year— $27,913 million in 1970—$2,922 million, made in 1969 at the high prevailing rates or 12 per cent, above the 1969 level (Table remained in bank loan portfolios. 1). This compares with a growth of 20 per While income from loans was rising, losses cent in 1969. As in other recent periods of sustained by banks on loans rose more rap monetary ease, the composition of bank idly than in any year since the 1930’s. Actual revenue reflected an increased contribution net losses—derived from the data reported of income from securities. by banks—amounted to $802 million in Both an increase in loans outstanding and 1970.2 Such losses represented 0.33 per cent a higher average rate of return helped to “This is the sum of (1) net losses charged to re push income from loans (including Federal serves for losses on loans for banks reporting on a reserve-accounting method (most banks report on this 'Total capital accounts include equity capital and basis) and (2) the amount reported as current capital notes and debentures but exclude reserves on operating expense item “provision for loan losses” loans and securities. for all other banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MEMBER BANK INCOME, 1970 447 of average loans outstanding in 1970—twice offs on credit cards was about double that in the comparable figure for 1969 and greater the preceding year. than for any other year since 1939. About Banks also earned large sums from their two-thirds of these losses occurred at large expanded holdings of securities in 1970. In reserve city banks and a significant portion come from the investment portfolio of this total is believed to represent charge- amounted to $4,832 million—up $569 mil offs related to the reorganization of a major lion, or 13 per cent. Supplementing this fig railroad under the bankruptcy act. Larger ure was net income derived from trading losses on credit cards also contributed to account transactions, which rose by $209 higher loan losses. A preliminary tabulation million, or 153 per cent. On securities held of figures for all member banks for 1970 in in the investment portfolio the most rapid dicated that the dollar amount of net charge- expansion in earnings was on U.S. Govem- TABLE 1 CONSOLIDATED REPORT OF INCOME FOR 1970 AND 1969 FOR ALL MEMBER BANKS AND RESTATEMENT OF 1968 DATA TO REVISED 1969 CONCEPT Amount, Change, in millions of dollars 1969-70 1968 .In 1970 1969 r (Restated millions Per and partly of cent estimated) dollars Operating income—Total....................................................................................... 27,913 24,991 20,819 2,922 11.7 Loans: Interest and fees.............................................................................................. 18,706 17,104\ 14,143 1,602 9.4 Federal funds sold and securities purchased under resale agreement........ 781 649/ 132 20.3 Securities: Excluding trading-account income—total.................................................... 4,832 4,263 569 13.3 U.S. Treasury securities............................................................................. 2,208 2,041 *2,208 167 8.2 U.S. Govt, agencies and corporations...................................................... 415 322 93 28.9 States and political subdivisions................................................................ 2,090 1,794 *1,929 296 16.5 Other securities........................................................................................... 118 106 12 11.3 Trust department................................................................................................ 1,075 972 880 103 10.6 Service charges on deposit accounts................................................................. 868 835 803 33 4.0 Other charges, fees, etc....................................................................................... 681 557 371 124 22.3 Other operating income: On trading account (net)............................................................................... 346 137 209 152.6 Other................................................................................................................ 625 473 486 152 32.1 Operating expenses—Total.................................................................................... 22,193 19,525 16,189 2,668 13.7 Salaries and wages of officers and employees.................................................. 5,282 4,690 4,097 592 12.6 Officer and employee benefits............................................................................ 876 749 633 127 17.0 Interest on— Time and savings deposits............................................................................. 8,139 17,059 i 6,803 1,080 15.3 F O e t d h e e r r a b l o fu rr n o d w s e p d u r m ch o a n s e e y d . .. a .. n .. d .. . s .. e . c .. u .. r .. i . t . i . e .. s . .. s . o .. l . d ... . u .. n .. d .. e .. r .. . r . e .. p .. u .. r .. c . h ... a . s .. e .. . a .. g .. r . e .. e .. m ... e .. n .. t . s 1,3 4 6 4 5 4 1,1 5 7 6 7 2 1 j 2 559 -1 1 1 8 8 8 -2 1 1 6 . . 0 0 Capital notes and debentures......................................................................... 90 89 95 1 1.1 Net occupancy expense...................................................................................... 1,013 867 783 146 16.8 Furniture, equipment, etc.................................................................................. 722 615 506 107 17.4 Provision for loan losses.................................................................................... 534 381 2 343 153 40.2 Other operating expenses................................................................................... 3,728 3,336 2,370 392 11.8 Income before income taxes and securities gains or losses................................. 5,720 5,467 4,630 253 4.6 Applicable income taxes......................................................................................... 1,775 1,813 2 1,479 -38 -2.1 Income before securities gains or losses............................................................... 3,945 3,653 3,151 292 8.0 Net securities gains or losses (—) after tax.......................................................... -107 -209 2 -189 -102 -48.8 Extraordinary charges (—) or credits after taxes................................................ -15 5 n.a. -20 400.0 Less minority interest in consolidated subsidiaries.............................................. (3) (3) n.a. Net income............................................................................................................. 3,823 3,450 2,962 373 10.8 Cash dividends declared 4..................................................................................... 1,754 1,523 2 1,299 231 15.2 1 This item excludes, and “interest on other borrowed money” description of the 1969 changes in reporting, see Federal Reserve and “other operating expenses” include, the following estimated Bulletin for July 1970, pp. 564 ff. amounts of interest on Euro-dollar borrowing incorrectly reported 3 Less than $500,000. as interest on time and savings deposits: 1968—$305 million; 1969— 4 On common and preferred stock, $101 million. n.a. Not available. 2 Because of the substantial changes in reporting beginning in 1969, r Revised. it was necessary to restate the 1968 figures to conform as closely as * Includes income from trading accounts shown in other operating possible with 1969 and 1970 reporting procedures. Some figures were income in 1969 and 1970. wholly or partly estimated. For the methods used in estimation and a Note.—Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
448 FEDERAL RESERVE BULLETIN □ JUNE 1971 TABLE 2 crease of 67 basis points in the average rate CHANGES IN MEMBER BANK AVERAGE LOANS, of return. Thus total income from Treasury INVESTMENTS, DEPOSITS, AND CAPITAL OUT issues rose by 8 per cent compared with a STANDING IN 1970 decline of about this proportion in 1969. Amounts shown in millions of dollars Earnings from other sources, which make Average Change up a little more than one-tenth of all the amount1 Item operating revenue of banks, expanded by 1969r 1970 Amount Per 14 per cent in 1970. A sizable part of the centage increase reflected trust department income, Total loans and investments, which continued its steady upward move gross2................................... 332,879 346,800 13,921 4.2 ment to a total of $1,075 million. This was Federal funds sold and se curities purchased under 11 per cent greater than in 1969. Service resale agreement................. 6,116 9,433 3,317 54.2 Other loans............................. 228,386 236,676 8,290 3.6 Commercial and industrial. 92,277 96,413 4,136 4.5 charges on deposit accounts ($868 million) Agricultural......................... 6,152 6,451 299 4.9 Real estate........................... 52,069 53,674 1,605 3.1 produced only a little more income than in For purchasing and carrying securities........................... 8,905 8,118 -787 -8.8 1969, but other charges, fees, and so forth To financial institutions.... 15,436 16,335 899 5.8 Other loans to individuals.. 47,081 48,982 1,901 4.0 rose by $124 million, or 22 per cent. All other.............................. 6,466 6,702 236 3.7 The latter category includes a wide variety U.S. Treasury securities3........ 41,257 39,256 -2,001 -4.9 U.S. Govt, agency and cor of collection and exchange charges and com poration securities 3......... 5,541 6,324 783 14.1 States and political subdivi missions and fees; among these are income sion securities3.................... 46,419 49,348 2,929 6.3 Other securities3..................... 1,892 1,877 -15 -.8 Trading account securities4 .. 3,268 3,886 618 18.9 from equipment leasing and from certain Total deposits......................... 350,799 360,721 9,922 2.8 types of loan servicing. Other operating Time deposits......................... 157,902 163,610 5,708 3.6 Savings................................. 74,828 74,254 -574 -0.8 income (excluding trading account income) Other time I.P.C................. 64,035 68,526 4,491 7.0 All other time..................... 19,039 20,830 1,791 9.4 totaled $625 million—$152 million, or 32 Equity capital5....................... 29,314 31,310 1,996 6.8 per cent, above the 1969 figure. About one- Total capital accounts6.......... 31,114 33,111 1,997 6.4 Reserves on loans and secur ities...................................... 4,832 5,282 450 9.3 Total equity capital and re TABLE 3 serves ................................... 34,146 36,592 2,446 7.2 SELECTED MEMBER BANK INCOME RATIOS r Revised. 1 Averages of figures for three call dates—the end of the preceding In per cent year and the June 30 and December 31 call dates for the calendar year. For 1969 the data for June 30 and December 31 were reported on a consolidated basis; data on a consolidated basis were not available for Ratios 1970 1969r 19681 Dec. 31, 1968. 2 Includes securities held in trading account. 3 Excludes securities held in trading account. Ratios to equity capital (including 4 Figures for securities held in trading account for Dec. 31, 1968, reserves): were estimated. Income before securities gains or 5 Includes common stock, preferred stock, surplus, undivided 10.75 10.70 10.04 profits, and reserves for contingency and other capital reserves. Net income...................................... 10.44 10.10 9.43 6 Includes equity capital plus capital notes and debentures. Cash dividends declared2............... 4.79 4.46 4.14 Rates of return on— ment agency securities and State and local Loans, gross.................................... 7.91 7.57 6.66 U.S. Treasury securities3............... 5.62 4.95 4.79 U.S. Govt, agencies and corporaobligations: $93 million (29 per cent) and 6.55 5.81] State and local govt, obligations3.. 4.23 3.87 4.13 3.67 $296 million (17 per cent), respectively. Other securities3............................. 6.30 5.59J This reflects larger holdings and higher Interest on time deposits to total time deposits.................................... 4.98 •■4.47 *•4.36 average rates of return than in 1969. For U.S. Government agency securities the aver r Revised. 1 Data for 1968 are not entirely comparable with those for 1969 and age rate of return increased by 74 basis 1970 because of changes in reporting procedures. See Bulletin for July 1970, pp. 571 and 572. 2 On common and preferred stock. points to 6.55 per cent; for State and local 3 Ratios for 1969 and 1970 based on bank’s own investment ac count—excluding trading account. Ratios for 1968 include trading obligations, by 36 basis points to 4.23 per account. cent. While average holdings of U.S. Trea Note.—These ratios were computed from aggregate dollar amounts of income and expense items. The capital, deposits, loans, and secur sury securities declined by nearly 5 per cent ities items on which the ratios were based were averages for two call dates in the calendar year and the last call date in the preceding year. in 1970, this was more than offset by an in For Dec. 31, 1968, the amount of trading account securities was not reported separately, but such holdings were estimated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MEMBER BANK INCOME, 1970 449 fifth of this increase represented larger net cent in 1970. This, coupled with the in earnings from foreign branches, which ex crease in the volume of deposits, raised total panded by nearly one-third in 1970. interest payments on time and savings de posits to $8,139 million—$1,080 million, or 15 per cent, more than in 1969. OPERATING EXPENSES As funds became more plentiful at home Operating expenses of member banks rose at and U.S. short-term interest rates dropped a more rapid rate than revenue in 1970. sharply, banks—mainly the largest institu Such expenses totaled $22,193 million and tions—began to substitute funds obtained were nearly 14 per cent above 1969. from domestic sources for high-cost Euro A major part of the increase was the dollar borrowing. They obtained some of larger amount of interest paid on time and these funds from Federal funds purchases savings deposits. The increase in this item and securities sold under repurchase agree accounted for two-fifths of the growth in all ments. Interest paid on such purchases at all operating expenses. After the early 1970 rise member banks increased by $188 million, in the maximum permissible rates payable or 16 per cent, in 1970. This was partly off by commercial banks on savings and other set by a reduction of $ 118 million in the cost time deposits, most member banks, particu of other borrowed money.3 larly the larger ones, pushed their offering Salaries and wages, the second largest rates to ceiling levels. Shortly thereafter, expense item for banks, rose by $592 mil savings and consumer-type time deposits lion to $5,282 million in 1970. This was an began to expand at banks, and in general increase of about 13 per cent and reflected such deposits rose throughout the rest of the a growth of 6 per cent in the number of year. Even though ceiling rates on large officers and employees and about the same CD’s had been raised in January, banks increase in average salaries and wages. could sell only a limited volume of such in Officer and employee benefits continued to struments because interest rates on compet expand faster than salaries. This item rose to ing money market instruments remained $876 million— 17 per cent above the 1969 significantly above the rates that banks were total. permitted to offer. But after the suspension Provision for loan losses contributed in late June of the Regulation Q ceiling on heavily to bank expenses in 1970. The total large-denomination time deposits maturing was $534 million, or 40 per cent more than in 30 to 89 days, banks quickly raised their in 1969. This compares with a growth in offering rates on such instruments to com average loans of less than 5 per cent. For petitive levels. Net sales of these deposits banks that operate on a reserve-accounting jumped sharply in the latter part of 1970. method—and most of them do—the provi Toward the end of the year bank offering sion for loan losses is an estimate of their rates on these large deposits were lowered average loan losses in recent years (deter to bring them more in line with declining mined by methods prescribed by supervisory market rates on competing instruments, but interest rates on passbook savings and con- 3 These figures do not reflect the full extent of the sumer-type CD’s generally remained at or decline in interest paid on borrowed money in 1970, near ceiling levels. since the cost of Euro-dollar borrowing—when such borrowing is from the bank’s own foreign branches— Reflecting these developments, the aver is shown in “other operating expenses.” For reserve city banks in New York City “other operating ex age interest rate paid on all time and savings penses” declined in 1970, as shown in Table 4, but deposits rose by 51 basis points to 4.98 per this decline was offset by increases in this item at banks outside New York City. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
450 FEDERAL RESERVE BULLETIN □ JUNE 1971 authorities); for these banks all losses on securities transactions and tax-deductible loans sustained during the year must be transfers from capital accounts to reserves charged against the reserve for losses on for losses on loans lowered the amount of loans. For the relatively few banks that do bank tax liability by $295 million. Tax re not operate on a reserve-accounting method ductions from these two sources had aggre —less than 300 small institutions—the pro gated $590 milion in 1969. vision for loan losses—shown as an operat ing expense—represents actual net loan NET INCOME AND CASH DIVIDENDS losses for the year. The $3,823 million in member bank net Other operating expenses amounted to income after taxes in 1970 was $373 mil $5,463 million. Of this total, $1,735 million lion, or 10.8 per cent, higher than in 1969. represented net occupancy expenses and fur This represented a rate of return on equity niture, equipment, fixtures, and so forth. capital (including reserves) of 10.44 per These were about 17 per cent higher than in cent—34 basis points above the ratio for 1969. All other operating expenses—$3,728 1969. million—were about 12 per cent above the Net income as a percentage of total capi year-earlier total. tal accounts—a figure used in years prior to 1969 as a measure of bank profitability— OTHER TRANSACTIONS was 11.5 per cent in 1970. This compares with 11.1 per cent in 1969, and with the Net losses on securities (before taxes) previous record of 10.9 per cent established amounted to $225 million in 1970—less in 1945. It should be noted, however, that than half as much as in 1969. Because these the 1969 and 1970 figures are not entirely losses reduce net income from current opera comparable with those for prior years be tions for tax purposes, the after-tax effect of cause of the effects of consolidation of earn security losses was $107 million, or about ings of domestic subsidiaries and of shifts by 3 per cent of net income before security gains some banks from cash to accrual accounting or losses. Extraordinary charges and mi nority interest in consolidated subsidiaries beginning in 1969—for both of which no were negligible in 1970, as in the preceding adjustments could be made. year. NET INCOME BY CLASS OF BANK INCOME TAXES Profits at both large and small banks moved upward in 1970. Nevertheless, the rates of Provision for all income taxes (including growth varied substantially by class of bank. taxes related to security transactions and Net income after taxes rose by 17 per cent other nonoperating sources) amounted to for reserve city banks in New York City $1,480 million in 1970—up $257 million compared with increases of 8 and 7 per cent, from 1969. Reflecting in part the expiration respectively, for reserve city banks in Chi in mid-1970 of the Federal surtax on net cago and all other reserve cities and an income and in part the further growth in income from State and local government increase of 12 per cent for the smallest banks obligations, which is tax-exempt, income —country members (Table 4). taxes applicable to operating income de One of the major factors in the superior clined to $1,775 million—2 per cent less performance of New York City banks was a than in 1969. Losses sustained by banks on smaller growth in expenses from 1969 to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MEMBER BANK INCOME, 1970 451 1970 due in part to the reduced cost of bor losses also helped boost profits at many rowed money. As indicated earlier, money member banks in 1970. These factors were market banks shifted much of their borrow more important, however—in relation to ing from high-cost Euro-dollars in 1969 to earnings from current operations—for City lower-cost domestic funds in 1970. Since banks than for other member banks. Only City banks accounted for a large part of all reserve city banks in Chicago, as a group, Euro-dollar borrowing, these banks bene reported higher income taxes applicable to fited most from the shift. Lower income taxes current earnings and larger security losses in on operating earnings and smaller security 1970 than in 1969. □ TABLE 4 CONSOLIDATED REPORT OF INCOME FOR 1970 AND 1969 FOR MEMBER BANKS GROUPED BY CLASS In millions of dollars Reserve city All member Country banks Item New York City City of Chicago Other 1970 1969 1970 1969 1970 1969 1970 1969 1970 1969 Operating income—Total................................... 27,913 24,991 5,116 4,668 1,230 1,085 10,450 9,332 11,117 9,906 Loans: Interest and fees.......................................... 18,706 17,104 3,523 3,324 817 765 7,217 6,641 7,148 6,374 Federal funds sold and securities pur chased under resale agreement.......... 781 649 94 116 31 30 301 221 355 283 Securities: Excluding trading-account income: U.S. Treasury securities.......................... 2,208 2,041 279 247 81 70 671 598 1,177 1,125 U.S. Govt, agencies and corporations.. 415 322 36 16 8 4 78 54 293 248 States and political subdivisions............ 2,090 1,794 296 258 80 71 721 635 994 830 Other securities....................................... 118 106 26 20 6 5 44 39 43 41 Trust department............................................ 1,075 972 336 309 79 71 421 374 238 218 Service charges on deposit accounts............. 868 835 66 61 6 5 326 313 469 457 Other charges, fees, etc................................... 681 557 105 83 20 18 312 254 244 202 Other operating income: 346 137 160 56 23 27 150 50 13 5 Other............................................................ 625 473 195 178 78 20 208 152 143 123 Operating expenses—Total................................ 22,193 19,525 4,051 3,650 961 849 8,385 7,326 8,796 7,699 Salaries and wages of officers and employees 5,282 4,690 905 794 181 156 1,994 1,762 2,202 1,978 Officer and employee benefits...................... 876 749 175 145 38 30 327 283 335 290 Interest on— Time and savings deposits......................... 8,139 7,059 995 826 288 249 3,085 2,738 3,770 3,245 Federal funds purchased and securities sold under repurchase agreements... 1,365 1,177 398 366 137 106 699 592 131 112 Other borrowed money.............................. 444 562 228 126 35 163 150 239 31 35 Capital notes and debentures.................... 90 89 26 29 2 2 40 39 22 19 Net occupancy expense................................... 1,013 867 195 160 41 27 361 311 415 369 Furniture, equipment, etc............................... 722 615 90 73 21 19 280 239 331 285 Provision for loan losses................................ 534 381 82 48 30 13 199 132 224 187 Other operating expenses............................... 3,728 3,336 956 1,084 188 83 1,249 990 1,335 1,179 Income before income taxes and securities gains or losses......................................... 5,720 5,467 1,065 1,018 269 236 2,065 2,005 2,321 2,207 Applicable income taxes................................. 1,775 1,813 370 390 92 81 670 679 644 663 Income before securities gains or losses........ 3,945 3,653 695 628 178 156 1,395 1,326 1,677 1,544 Net securities gains or losses (—) after taxes......................................................... -107 -209 -55 -78 -13 -7 -32 -75 -7 -49 Extraordinary charges (—) or credits after taxes......................................................... -15 5 3 0) -2 2 -20 2 4 2 Less minority interest in consolidated sub sidiaries.............................................. (i) O) O) (1) O) (!) Net income...................................................... 3,823 3,450 642 551 162 150 1,343 1,252 1,675 1,496 Cash dividends declared................................. 1,754 1,523 423 345 88 70 651 593 592 515 Ratios (per cent): To equity capital (incl. reserves): Income (after taxes) before securities gains or losses.................................. 10.75 10.70 9.76 9.23 9.77 9.05 10.80 11.06 11.31 11.32 Net income.............................................. 10.44 10.10 9.03 8.10 8.91 8.70 10.40 10.44 11.35 10.97 1 Less than $500,000. Note.—Figures may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Two Key Issues of Monetary Policy I intend to focus this morning on two prob is now readily available across the range of lems that concern practically all of our skills and in most sections of the country. countries. We have just experienced an inter Virtually all industries have substantial national monetary crisis, the ultimate re amounts of excess capacity. In such circum percussions of which are not yet clear. We stances, past experience would have led us shall therefore need to exchange ideas on to expect a substantial reduction in the rate how to deal with large short-term capital of increase of costs and prices, if not actual flows in the future. declines. In fact, however, the improvement The other major problem that haunts in thus far has been modest. dustrialized countries is the power and per True, we have made progress over this sistence of cost-push inflation. Let us turn past year in regaining normal rates of growth to this at once. in productivity. However, increases in aver Virtually all industrialized countries are age compensation per manhour have shown suffering from inflation at present. In some, no sign of abatement, and the advance of aggregate demand for goods and services is unit labor costs has therefore moderated still booming, so a rising price level can be less than we had hoped. With profit margins expected. In others, however, costs and remaining very low, businessmen have taken prices are continuing to advance in the face available opportunities to pass their cost in of substantial unemployment and increasing creases through to higher prices. idle capacity of industrial plant. The continuance of a rising price level in We are living in an age in which cost- the midst of substantial unemployment thus push inflation has emerged as a major stems, basically, from continuing rapid in obstacle to economic stability. Unless we crease in wages. Understandably, workers find workable solutions to this problem, our are seeking to obtain wage gains large best efforts to promote economic progress enough to offset the effects of past increases and the general welfare may be thwarted. in prices on their real incomes and savings, Clearly, countries that are now expe but this development also reflects the weak riencing demand-pull inflation must pursue ening of competitive forces in both our labor monetary and fiscal policies that aim to and product markets. Wages and prices have eliminate excess demand. But they may not been responding as sensitively as they well find, as others have, that elimination of once did to shifts in the balance between excess demand does not assure a prompt supply and demand. return to price stability. The American economy is not unique in The recent experience of the United States this respect. The problem of cost-push is a case in point. During the past year and inflation has been plaguing many nations in a half, our unemployment rate has risen recent years. In Canada, for example, un from 3V2 per cent to about 6 per cent. Labor employment began rising in 1966 and has been increasing irregularly since then. New Note.—Remarks of Arthur F. Bums, Chairman, Board of Governors of the Federal Reserve System, wage settlements under collective bargaining before the 1971 International Banking Conference, agreements, however, have yet to show any Munich, Germany, May 28, 1971. 452 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
appreciable sign of moderation. In the alternative to experimentation with incomes United Kingdom, the unemployment rate policies—including wage and price review has been slowly rising over the past 5 years boards that stop short of mandatory con or so. Nonetheless, the upward movement trols. of wages and prices appears to have accel Let me turn next to the problem posed erated in the past 18 months. by massive short-term capital movements. Cost-push inflation cannot be dealt with Recently, as we all know, heavy speculation effectively by using monetary and fiscal tools in favor of a few currencies has led to alone. In today’s environment, efforts to do changes in the exchange-rate regimes of so would inevitably reduce output and em several countries. It may be helpful to say a ployment far beyond the limits that our few words about the background of these governments can accept or their citizens events, asking what we can learn from the tolerate. On the other hand, I fear that cost crisis we have been through. pressures may become so intractable in our The heavy flow of short-term funds from countries that they will ultimately weaken Europe to the United States in 1968-69 democratic institutions, besides stifling eco and the return flow during the past year nomic progress. resulted from a disparity in the phasing of Over a year ago, I reluctantly came to the the business cycle in the two areas. The conclusion that monetary and fiscal instru United States experienced serious demandments needed to be supplemented for a time pull inflation, and also moved to combat it, by incomes policies in the United States— before Europe did. More recently, while that is, policies designed to enable labor and demand conditions have remained strong commodity markets to approximate more in Europe, we in the United States have closely the competitive model. My convic sought to prevent a sluggish economy from tion has been strengthened by developments slipping into a cumulative recession. during the past year. Differences in economic and credit con I recognize that governmental involve ditions thus account for the swings in short ment in the determination of wages and term capital flows of recent years. In par prices can give rise to inequities, to misalloticular, the flow across the Atlantic since cation of resources, to the blunting of private early 1970 reflected not only a push from initiative, and to an administrative morass, the United States but also a pull from but I am also aware of the moral force of Europe. The push from the United States governmental leadership over private deci sions in key industries, to say nothing of resulted from the easing of our credit con the capacity of a vigilant government to ditions. The pull from Europe was just as remove or reduce the special market power clearly the result of a continuing demand that privileged groups now have. for Euro-dollars by corporations and govern We need in the United States, and I mental entities that sought to escape from believe also in other countries, greater re tight credit within their domestic markets. liance on policies that promise to change It was against this background of a mas the structure and functioning of labor and sive return of short-term capital to Europe product markets, so that upward pressures in 1970-71 that speculative fever broke out on costs and prices may be reduced. To a few weeks ago. Oddly enough, there were cope with the inflationary bias presently at good reasons to believe that we had already work in our economies, I see no acceptable passed the peak of capital flow. 453 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
454 FEDERAL RESERVE BULLETIN □ JUNE 1971 The U.S. Government issue of $3 billion First, in a world of convertible currencies, in special securities to foreign branches of with many business firms and financial insti American banks had served to check the tutions commanding large sums, differences flow of dollars to European central banks. in monetary conditions can induce sizable After mid-March, a convergence of interest movements of short-term capital among rates got under way, with short-term rates nations. Let us recognize that such flows rising in the United States and declining in are the result of a pull from the receiving Europe. By April the repayment by U.S. countries as well as a push from the capitalbanks to their foreign branches had slowed exporting countries. sharply. Not only that, steps were already Second, the amplitude of short-term being taken to check the creation of Euro capital movements will become smaller if we dollars by European central banks which manage to reduce differences in monetary had inadvertently, but on a disconcertingly conditions. This would require, in all major large scale, added to the dollar reserves countries, a more active use of fiscal policy that resulted from the balance of payments for domestic stabilization purposes. The deficit of the United States. In addition, political obstacles here are formidable but, major plans were being developed by the I hope, not insurmountable. We should keep U.S. Treasury to provide improved invest this goal before our minds as we deal with ment outlets for central bank reserves in the day-to-day problems. United States. Third, the Euro-currency markets no Unhappily, the calm that appeared to exist doubt facilitate the international movement in these unfolding circumstances was dis of short-term capital, but let us not deceive rupted by various events in Europe with ourselves regarding cause and effect. The which you are all-familiar. flow of funds through these markets is a The events of the past 2 weeks have left a response to differences in basic economic residue of resentment among European and monetary conditions among countries, countries and toward the United States. If not a cause of such differences. some of you feel that the United States Fourth, some industrialized countries lack depended excessively on monetary ease in the facilities to neutralize the disruptive the past year, there are surely grounds for effects of large capital inflows or outflows on holding that European countries relied ex their domestic money supply. It is important cessively on monetary stringency during this that we all press forward, individually and period. jointly with other nations, in devising insti I must remind you of two facts. First, tutions that may serve to reduce the desta the United States recently resorted to a far bilizing impact of short-term capital flows. more restrictive policy to wring excess Fifth, we live in a world in which private demand out of its economy than any country citizens and businesses are expected to act in the world, with the possible exception of in response to the profit motive. Central Canada. Second, if a cumulative recession banks, on the other hand, have a stabilizing had been allowed to occur in the United function that should not be influenced by States, it would almost certainly have considerations of profit or loss. If central brought serious economic and political banks are to respond to the same factors trouble to other nations of the free world. that motivate private entities, they are likely Let me turn briefly now to several lessons to aggravate their own problems, as hap we can derive from recent events. pened during the past year when a sig Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
ISSUES OF MONETARY POLICY 455 nificant volume of central bank reserves was countries. This advantage is likely to con placed in the Euro-dollar market. tinue and it should permit us to regain Sixth, there is a tendency in some quarters competitive strength that we probably lost to identify the U.S. balance of payments as in the second half of the 1960’s. the common cause of inflation in other Our receipts of investment income from countries. I recognize that the flow of short abroad have been rising rapidly. We expect term capital has had the effect, to some this to continue even as rewards from invest degree, of undermining monetary policies in ment at home, which affect both our capital some countries. But let us not exaggerate this and current accounts, loom larger. effect. The wage explosions experienced by We have seen in recent years a large in European countries in recent years cannot crease of foreign investment in the U.S. be attributed to the U.S. balance of pay stock market. This too should continue, pro ments. vided we maintain a strong and healthy Seventh, what I have just said represents economy and take measures to prevent in no sense an attitude of complacency about recurrences of the sort of speculative crisis the U.S. balance of payments. In a recent that occurred recently. appearance before a Senate committee, I The reduction of our troops in Vietnam stressed once again the overriding need to is diminishing the military drain on our restore price stability at home and, in present balance of payments. We expect this reduc circumstances, to maintain our govern tion to continue. mental constraints on private capital out Finally, the bulk of the short-term capital flows. I also took that occasion to note the outflow through our banks is now behind us. need to develop more effective methods for American banks have reduced the liabilities recycling funds across national boundaries to their foreign branches from over $14 when substantial short-term capital flows billion in early 1970 to less than $2 billion occur, the need for some countries to relax presently. Thus, even before our underlying their restrictions on commodity imports and payments position improves, our deficit on capital outflows, and the need for America’s the official settlements basis should fall allies to make a significantly larger contri sharply from its rate of the last year or so. bution to the defense of the free world. These favorable prospects can be has In closing, I would like to repeat what I tened if they are accommodated to by other told the Senate Banking Committee about countries. After all, the counterpart of the the prospects for the U.S. balance of pay U.S. deficit is the rest of the world’s surplus. ments. I see no reason for gloom about these We and our major trading partners need to prospects. respect, in a spirit of candor and under Our price performance has recently been standing, the policy implications of this better than that of many other industrial simple arithmetic truism. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Survey of Demand Deposit Ownership Since June 1970 the Federal Reserve Sys difficult to determine whether—or to what tem has been conducting a survey on the extent—these changes in ownership struc ownership of demand deposits held at com ture reflect seasonal movements. mercial banks in the United States. This This article outlines the format of the new Survey—the last nationwide survey of Survey and presents estimates of deposit this type was in January 1961—provides ownership based on data collected from quarterly estimates of the ownership of gross June 1970 through April 1971. These esti demand deposits of individuals, partnerships, mates are presented in Tables 1 and 2. The and corporations (IPC) at all commercial results of subsequent surveys will appear banks in the United States and monthly esti regularly in future B ulletin s. This article mates for such deposits at large weekly re also describes the relationship of the de porting banks. Five depositor categories are posits covered in the Survey to the concept identified in the Survey: financial business, and measures of the money stock published nonfinancial business, consumer, foreign, in the B u lletin (seasonally unadjusted and all other. Mi) and to the estimates of money stock The data to date indicate that nonfinan ownership shown in the Federal Reserve cial businesses hold somewhat more than flow of funds accounts. A detailed review of half of the total IPC demand deposits in the the survey format and a discussion of the United States and financial businesses about statistical reliability of the survey estimates 10 per cent. Thus, in the aggregate, busi are presented in a Technical Appendix. nesses hold more than three-fifths of the total. Consumers are the major remaining OUTLINE OF SURVEY FORMAT holder group, accounting for somewhat more The Survey of Demand Deposit Ownership than 30 per cent. The residual is divided focuses on deposit balances that are classi between other domestic depositors (6 per fied on reports of condition submitted by cent) and foreign lenders (1 per cent). banks to the supervisory authorities as being While the relative shares of the various held by individuals, partnerships, and cor owner categories do not fluctuate widely porations—specifically, balances reported by from month to month, the data indicate that banks under item 15 on the quarterly con the structure of deposit ownership has shifted solidated report of condition. Reporting moderately since June 1970. Balances of banks have been asked to classify these ac financial businesses and consumers have counts into five categories: financial busi increased in relative importance while those ness, nonfinancial business, consumer, for of nonfinancial businesses have declined. eign, and all other domestic depositors.1 In fact, consumer deposits account for The information is collected from a sam nearly four-fifths of the $6.3 billion rise in ple of banks—413 banks of a total of about total IPC balances at all weekly reporting banks between June 1970 and April 1971. 1 See the Technical Appendix for a detailed de scription of the types of depositors in the various However, with less than a year’s data, it is categories. 456 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
14,000. Somewhat more than half of the depositors in the all other category made up sample was selected from commercial banks the remaining shares of about 1 per cent that had total deposits in excess of $100 and 6 per cent, respectively. Deposit hold million in mid-1968. On the basis of the ings of nonfinancial business firms, financial reports from this part of the sample, it is business firms, and foreigners account for possible to make monthly estimates of IPC somewhat greater proportions of total IPC deposit ownership at all large banks for demand deposits at weekly reporting banks which comprehensive weekly reports of con than they do at all commercial banks (Table dition are regularly published (Federal 2). Correspondingly, the relative shares of Reserve statistical releases and the B u lle the total held by consumers and by all other tin, pp. A26-A30). The remaining sample domestic depositors at weekly reporting banks were selected from among smaller banks are smaller. commercial banks; these banks were asked These differences in the relative owner to report information on deposit ownership ship distribution of demand deposits among for the last month of each calendar quarter. U.S. banks are highlighted in Table 3. It The data for the combined sample make shows that financial and nonfinancial busi possible the construction of quarterly esti nesses together account for approximately mates (the last month of the quarter) of IPC 70 per cent of the total of IPC deposits at demand deposit ownership at all commer large commercial banks, whereas at smaller cial banks. For both parts of the Survey, the banks the balances of these depositors make data are on a daily-average basis for the up only slightly more than half of the total.2 month. Conversely, consumers are a decidedly less important source of demand deposit funds at OWNERSHIP DISTRIBUTION OF IPC DE large commercial banks than at smaller MAND DEPOSITS banks, with balances supplied by these de positors at large banks about one-fifth of In the months covered by the Survey so far, nonfinancial business firms owned somewhat 2 The estimates of deposit ownership at banks other more than half of the total IPC deposit than those reporting weekly were not based directly balances, with the shares held by financial on data supplied in the Survey. These estimates were businesses and consumers accounting for derived by deducting estimates of ownership holdings at weekly reporting banks from such estimates for all about one-tenth and slightly less than one- commercial banks. Thus the nonweekly reporting third of the total, respectively, as shown in bank estimates are subject to the sampling errors found in the weekly reporting bank estimates, as well Table 1. Balances of foreigners and of as those found in the all commercial bank estimates. TABLE 1 IPC DEMAND DEPOSIT OWNERSHIP AT ALL COMMERCIAL BANKS Quarterly Estimates, June 1970-March 1971 Outstanding (millions of dollars) Percentage distribution Category 1970 1971 1970 1971 June Sept. Dec. Mar. June Sept. Dec. Mar. Financial business............... 16,649 17,029 17,315 18,222 10.2 10.1 9.9 10.7 Nonfinancial business......... 85,808 88,050 92,687 86,027 52.5 52.5 52.9 50.4 49,888 51,392 53,564 54,700 30.5 30.6 30.6 32.0 1,425 1,371 1,285 1,387 .9 .8 .7 .8 9,595 10,015 10,271 10,473 5.9 6.0 5.9 6.1 163,364 167,860 175,122 170,810 100.0 100.0 100.0 100.0 Note.—Details may not add to totals because of rounding. 457 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
458 FEDERAL RESERVE BULLETIN □ JUNE 1971 TABLE 2 IPC DEMAND DEPOSIT OWNERSHIP AT WEEKLY REPORTING BANKS Monthly Estimates, June 1970-April 1971 1970 1971 Category June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Outstanding (billions of dollars) Financial business__ 12,835 13,588 12,720 13,382 13,217 13,587 13,502 13,936 13,810 14,052 14,126 Nonfinancial business 52,980 52,813 52,821 53,850 53,708 53,910 56,138 54,446 52,267 52,401 53,413 Consumer................. 20,976 20,609 20,574 21,151 20,856 21,066 23,280 24,096 23,060 23,889 25,289 Foreign...................... 1,306 1,415 1,235 1,272 1,238 1,185 1,183 1,224 1,217 1,259 1,251 All other.................... 5,208 5,314 4,852 5,472 5,822 5,415 5,551 5,583 5,486 5,716 5,704 Total...................... 93,306 93,739 92,204 95,127 94,841 95,163 99,653 99,286 95,840 97,317 99,783 Percentage distribution Financial business 13.8 14.5 13.8 14.1 13.9 14.3 13.6 14.0 14.4 14.4 14.2 Nonfinancial business 56.8 56.3 57.3 56.6 56.6 56.7 56.3 54.8 54.5 53.9 53.5 Consumer................. 22.5 22.0 22.3 22.2 22.0 22.0 23.4 24.3 24.1 24.6 25.3 Foreign..................... 1.4 1.5 1.3 1.3 1.3 1.2 1.2 1.2 1.3 1.3 1.3 All other................... 5.6 5.7 5.3 5.8 6.1 5.7 5.6 5.6 5.7 5.9 5.7 Total..................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Note.—Details may not add to totals because of rounding. TABLE 3 PERCENTAGE DISTRIBUTION OF IPC DEMAND DEPOSITS AT SELECTED GROUPS OF BANKS, BY OWNERSHIP CATEGORY Quarterly Estimates, June 1970-March 1971 June September December March Category All Weekly All Weekly All Weekly All Weekly com reporting Other com reporting Other com reporting Other com reporting Other mercial banks banks mercial banks banks mercial banks banks mercial banks banks banks banks banks banks Financial business.... 10.2 13.8 5.4 10.1 14.1 5.0 9.9 13.6 5.1 10.7 14.4 5.7 Nonfinancial business. 52.5 56.8 46.9 52.5 56.6 47.0 52.9 56.3 48.4 50.4 53.9 45.9 30.5 22.5 41.3 30.6 22.2 41.6 30.6 23.4 40.1 32.0 24.6 41.7 Foreign....................... .9 1.4 .2 .8 1.3 .1 .7 1.2 .1 .8 1.3 .2 All other..................... 5.9 5.6 6.3 6.0 5.8 6.3 5.9 5.6 6.3 6.1 5.9 6.5 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 Note.—Details may not add to totals because of rounding. total IPC deposits compared with about banks obtained in the present Survey appear two-fifths of the total at smaller banks. Also, to differ only moderately from the distribu deposits of foreign IPC customers are rela tion estimated in the 1961 survey. As shown tively much more important at weekly re in Table 4, the estimated percentages of porting banks than at smaller banks, and total IPC demand deposits held by financial balances of customers in the all other cate businesses, nonfinancial businesses, and for gory have less relative importance at the eigners in this Survey are somewhat below weekly reporting banks. those measured in the 1961 survey. Con versely, the estimated shares of total IPC COMPARISON WITH DATA FROM EARLIER demand balances held by consumers and SURVEYS depositors in the all other category are some The estimates of the relative ownership dis what higher now than in 1961. tribution of IPC deposits at all commercial Some caution is required in interpreting Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF DEMAND DEPOSIT OWNERSHIP 459 these comparisons because the surveys differ shifts resulted in statistically significant in several significant respects. The estimates changes in the percentage distribution of for 1961 and earlier were derived from deposits among ownership categories. (For reports reflecting balances outstanding on a an evaluation of the statistical properties of single day late in January, while the 1970- the changes, see the Technical Appendix.) 71 data are based on estimates of daily- A longer run of the series will be required to average balances held during the reporting separate out the seasonal component of these movements in deposit ownership. TABLE 4 As indicated in Table 5, total IPC de PERCENTAGE DISTRIBUTION OF DEMAND DE mand deposits as measured in the Survey POSIT OWNERSHIP AT COMMERCIAL BANKS IN increased markedly in the third and fourth THE UNITED STATES, 1947-71 quarters of last year and then dropped dur Annual averages, Finan Nonfi ing the first quarter of this year. Only non or 1-month cial nancial Con Foreign All estimate business business sumer other financial business deposits showed the same general pattern as the quarterly variations 1947-49................... 8.8 57.3 27.5 n.a. 6.4 1 19 95 5 2 7 - - 5 6 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 1 . . 9 5 5 55 3 . . 1 6 2 2 9 8 . . 6 6 n.a .2 . 4 6 . . 6 4 in the total. Balances of all four domestic 1961......................... 11.2 53.4 29.7 .9 4.7 1970—June.............. 10.2 52.5 30.5 .9 5.9 depositor groups increased at all commer Srje1p'1t.............................. 10.1 52.5 30.6 .8 6.0 Dec............... 9.9 52.9 30.6 .7 5.9 cial banks during the third and fourth 1971—Mar............... 10.7 50.4 32.0 .8 6.1 quarters, but during the first quarter of this n.a. Not available. year, while balances of nonfinancial busi Note.—Data for years 1947 through 1961 reflect estimates derived from previous surveys of deposit ownership distribution, which nesses declined sharply, balances of financial measured ownership distribution on a single day in late January of each year. In contrast, data for 1970 are estimates of the daily average businesses, consumers, and all other domes for the month. Before 1957 foreign deposits and all deposits of bank trust departments were reported as part of “all other.” In 1970, deposits of “own” trust departments are in all other; deposits of other tic depositors increased further. Foreign banks’ trust departments are in financial business. The earlier surveys showed a separate category for farm accounts. These are not sep deposit balances had a pattern the reverse of arated out in 1970, and in this table the farm accounts have been combined with nonfinancial business in the earlier years. that of the total, declining in the third and fourth quarters and increasing in the first months. While seasonal movements and the quarter. Although seasonal patterns of volatility of 1-day figures may account for change in sector holdings as measured in the part of the observed differences, it seems Survey are not yet known, it seems likely likely that some significant change did take that the substantial decline in nonfinancial place from 1961 to the present. Some of the business balances during the first quarter of observed shifts in ownership distribution be this year in part reflects seasonal influences, tween 1961 and the present continue trends since business borrowing of banks tends to observed in earlier years. Thus, the share of decline markedly early in the year. But total IPC demand deposits held by non given the magnitude of the decline, it also financial business has been declining at least since the late 1940’s, whereas the share held appears quite likely that nonfinancial busi by consumers has been rising over this ness deposits would show a decline after period. seasonal adjustment. As a cumulative result of these quarterly SHORT-TERM CHANGES IN DEPOSIT OWN variations, deposit balances of all four do ERSHIP mestic depositor groups show increases for The Survey estimates indicate that the vol the entire period that range from a high of ume of balances held by each depositor cate 9.3 per cent for the consumer category to gory changed perceptibly during the period a low of 1.7 per cent for the nonfinancial June 1970 to April 1971 and that these business category. Foreign deposit balances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
460 FEDERAL RESERVE BULLETIN □ JUNE 1971 TABLE 5 QUARTERLY CHANGES IN THE PERCENTAGE OF IPC DEMAND DEPOSITS AT SELECTED GROUPS OF BANKS, BY OWNERSHIP CATEGORY June 1970-March 1971 All commercial banks Weekly reporting banks Other commercial banks Category 1970 1971 1970 1971 1970 1971 Entire Entire Entire period period period Q3 Q4 Ql Q3 Q4 Ql Q3 Q4 Ql Financial business............. 2.3 1.7 5.2 9.5 4.3 .9 4.1 9.5 -4.4 4.6 9.4 10.7 Nonfinancial business........ 2.6 5.3 -7.2 .3 1.6 4.3 -6.7 -1.1 4.2 6.9 -8.0 2.7 Consumer........................... 3.0 4.2 2.1 9.6 .8 10.1 2.6 13.9 4.6 .1 1.7 6.1 Foreign............................... -3.8 -6.3 7.9 -2.7 -2.6 -7.0 6.4 -3.6 — 16.7 3.4 25.4 -2.9 4.4 2.5 2.0 9.2 5.1 1.4 3.0 9.8 3.6 3.8 .8 8.3 Total............................... 2.8 4.3 -2.5 4.6 2.0 4.8 -2.3 4.3 3.8 3.8 -2.6 4.9 show a net decline of 2.2 per cent for the of last year and then declined in the first 10-month period. quarter of this year, whereas foreign de The patterns of quarterly change in own posit balances declined over the second half ership balances at weekly reporting banks of last year and then increased during the and at all other commercial banks generally first quarter of this year. The cumulative conform to those displayed by the totals for effect of these quarterly variations at weekly all commercial banks (Table 5). With but reporting banks was to substantially raise one exception balances of financial busi balances of financial businesses, consumers, nesses, consumers, and all other domestic and all other depositors and to slightly re depositors increased in all three quarters at duce balances of nonfinancial businesses and both groups of banks. Quarterly changes in foreigners. At all other commercial banks, nonfinancial business balances and foreign balances of all domestic depositor groups balances at weekly reporting banks and show an increase for the entire period and other banks also generally matched the pat foreign balances display a slight decline. tern established for all commercial banks— The pattern of deposit ownership develop that is, nonfinancial business balances in ments for the early part of 1971 was altered creased in both the third and fourth quarters to some extent by developments in April, TABLE 6 QUARTERLY CHANGES IN THE PERCENTAGE OF TOTAL IPC DEMAND DEPOSITS HELD BY EACH OWNERSHIP CATEGORY June 1970-March 1971 All commercial banks Weekly reporting banks Other commercial banks Category 1970 1971 1970 1971 1970 1971 Entire Entire Entire period period period Q3 Q4 Ql Q3 Q4 Ql Q3 Q4 Ql Financial business.............. -.1 -.2 .8 .5 .3 -.5 .8 .1 -.4 .4 .3 Nonfinancial business........ .4 -2.5 -2.1 -.2 -.3 -2.4 -2.8 .2 *i!i -2.9 -1.0 Consumer........................... ” .’i 1.4 1.5 -.3 1.2 1.2 2.1 .3 -1.5 1.5 .5 Foreign............................... -.1 -!i .1 -.1 -.1 -.1 .1 -.1 All other............................. .1 -.1 .2 .3 .2 -.2 .3 .3 .3 ” .*2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF DEMAND DEPOSIT OWNERSHIP 461 however, as nonfinancial business balances IPC deposits remained essentially stable dur rose about $1 billion for the month while ing the second half of 1970, but then shifted holdings by financial businesses, consumers, noticeably in the first quarter of this year, and all other domestic depositors showed as the relative shares held by the financial further increases of $600 million, $2.0 bil business and consumer categories rose ap lion, and $200 million, respectively, and preciably and the share of the total held by foreign deposits remained essentially un nonfinancial business declined. The relative changed. With the sharp April advance, share of total IPC deposits held by depositors it now appears that nonfinancial business in the all other category rose over the 10balances have risen somewhat more strongly month period, whereas that held by for since June of last year. This increase, how eigners declined slightly. ever, remains well below the gains in finan Developments in relative ownership dis cial business and consumer balances, tribution at weekly reporting banks and at whether the changes compared are meas other commercial banks differed to some ured in absolute or percentage terms. degree from those recorded at all commer The quarterly changes in balances held cial banks. Quarter-to-quarter changes in by the various ownership groups reviewed the percentage of total IPC demand de above resulted in some shifts in the percent posits held by each ownership group at age distribution of total IPC deposits among these two groups of banks appear to have owner groups (Table 6). At all commercial been slightly larger—especially in the latter banks, the percentage distribution of total half of last year—than at all commercial TABLE 7 DEPOSIT OWNERSHIP BALANCES In millions of dollars unless otherwise indicated 1970 1971 Ownership category and bank group June Sept. Dec. Mar. Financial business: All commercial banks........................................ 16,648 17,029 17,315 18,222 Weekly reporting banks— Amount.......................................................... 12,835 13,382 13,502 14,052 Per cent of total.............................................. 77.1 78.6 78.0 77.1 Nonfinancial business: All commercial banks........................................ 85,808 88,050 92,687 86,027 Weekly reporting banks— Amount........................................................... 52,980 53,850 56,138 52,401 Per cent of total.............................................. 61.7 61.2 60.6 60.9 Consumers: All commercial banks........................................ 49,888 51,392 53,563 54,700 Weekly reporting banks— Amount........................................................... 20,976 21,151 23,280 23,889 Per cent of total.............................................. 42.0 41.2 43.5 43.7 Foreign: All commercial banks........................................ 1,425 1,371 1,285 1,387 Weekly reporting banks— 1,306 1,272 1,183 1,259 Per cent of total.............................................. 91.6 92.8 92.1 90.8 All other: All commercial banks........................................ 9,595 10,018 10,271 10,473 Weekly reporting banks— Amount........................................................... 5,208 5,472 5,551 5,716 54.3 54.6 54.0 54.6 All categories: All commercial banks........................................ 163,364 167,860 175,122 170,810 Weekly reporting banks— 93,306 95,127 99,653 97,317 57.1 56.7 56.9 57.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
462 FEDERAL RESERVE BULLETIN □ JUNE 1971 banks. In addition, in some instances the porting banks accounted for more than pattern of quarterly changes in relative three-fourths of all such balances in the ownership distribution also differed. For the country in the final month of all four quar entire period, however, the patterns of ters. Nonfinancial business deposits at change in ownership distribution at both weekly reporting banks accounted for about groups of banks appear to have been gen three-fifths of all balances at commercial erally similar to those at all commercial banks, foreign deposit balances more than banks—financial business, consumer, and nine-tenths, and all other deposits more all other domestic depositors increased their than one-half. The proportion of consumer share of total IPC balances at both groups balances held at weekly reporting banks, of banks while the shares held by nonfinan on the other hand, is only a little more than cial business declined. two-fifths of all such balances in the United Although there are a number of differ States. These weekly reporting bank per ences in the relative size of growth rates and centage shares of total balances in the vari in quarterly patterns of change in the various ous categories appear to fluctuate within deposit ownership categories at all com fairly narrow ranges. mercial banks and weekly reporting banks, the monthly data for weekly reporting banks SURVEY DATA COMPARED WITH MONEY appear to provide a good indication of STOCK AND FLOW OF FUNDS ESTIMATES the course of deposit ownership develop With demand deposits making up about ments at all commercial banks. It will be four-fifths of the total money stock—cur noted in Table 5, for example, that the rency is the remaining one-fifth—demand direction of change in each owner category deposit ownership data can provide impor at weekly reporting banks accurately indi tant insight into the question of who owns cated the direction of change at all commer the U.S. money stock and how money stock cial banks in the three quarters for which ownership changes over time. However, the data were collected. As previously noted, deposits covered in the Survey differ from the size of the differences in percentage the demand deposit component of the money change between these two data series was stock in a number of ways. The money stock quite large in some cases, so that the weekly includes several other types of demand de reporting bank data do not serve as a precise posits in addition to IPC demand deposits. gauge of the universe. More experience with Moreover, the Survey IPC demand deposit the data should provide some insight on the data are on a gross basis—that is, before extent to which this divergence may be due deduction of bank float—whereas the money to differences in the seasonal patterns of stock demand deposit component is net of deposit developments at the two groups of bank float. banks. Lines 1 through 10 of the first (total) A fairly close correspondence between column of Table 8 illustrate the relationship weekly reporting bank data and all commer with the money stock measure for December cial bank data is not surprising, of course, of last year. To approximate the demand de since balances at weekly reporting banks posit component of the money stock (line account for a large share of the total of 8), it is necessary to add to gross IPC de balances maintained at all commercial mand deposits as measured in the Survey banks. As may be seen in Table 7, deposits (line 1) demand deposits that are not part held by financial businesses at weekly re of the IPC total—the demand deposits of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF DEMAND DEPOSIT OWNERSHIP 463 TABLE 8 RECONCILIATION BETWEEN SURVEY DATA AND SELECTED FINANCIAL SERIES, DECEMBER 1970 In billions of dollars without seasonal adjustment Holder sector Line Item Total Non Consumer Total Financial financial and other foreign State and business business domestic accounts local govts. depositors Total IPC demand deposits, gross, as measured in ownership survey........................................................ 175.1 17.3 92.7 63.8 1.3 State and local government deposits............................ 14.5 14.5 Demand deposits of foreign official institutions,1 in ternational institutions, and foreign commercial banks 3.7 3.7 Certified and officers’ checks......................................* 9.4 5.2 2.2 "2.0 Sum of (1) through (4).................................................. 202.7 22.5 94.9 63.8 '‘5.0’ 16.5 Bank float2...................................................................* -31.8 -4.6 -25.8 -2.0 Statistical discrepancy.................................................. .2 .2 Private demand deposit component of money stock... 171.1 17.9 69.3 63.8 '’5.6' 14*5* Currency holdings........................................................ 50.0 50.0 Money stock (as published)........................................ 221.1 17.9 69.3 113.8 * '5.'6‘ * i 4 .* 5 Demand deposit balances held by Edge Act corpo rations and agencies of foreign banks in U.S.3.... 1.2 1.2 Mail float4.................................................................... -21.4 -2.3 -17.1 — 2.0 Money holdings on holder-record basis—average for month........................................................................ 200.9 16.8 52.2 113.8 5.0 12.5 Money holdings in flow of funds accounts on holderrecord basis—end-of-month balances..................... 5 204.3 16.8 49.6 M20.3 65.0 12.5 (14) less (13)................................................................. 3.4 2.6 -6.5 1 Figures include deposit balances maintained at Federal Reserve 4 Checks in transit that have been deducted from senders’ records Banks. but not yet added to receivers’ records. 2 Bank float includes cash items in process of collection as indicated 5 Reflects revision in flow of funds figures on foreign balances not on bank balance sheets plus Federal Reserve float. The figure has also yet incorporated in flow of funds Bulletin tables. been adjusted for the volume of cash items generated by Edge Act 6 Equal to sum of lines 8 and 10 in total column (assets) of flow o corporations and agencies of foreign banks in the United States. funds table on p. A71.2 of this Bulletin. 3 These deposits are included in “due to commercial banks” in * No data available to guide distribution of these items. See text banking statistics and are excluded from money stock totals. for explanation of basis used. State and local governments (line 2), for The Board’s flow of funds accounts pre eign commercial banks, foreign official in sent estimates of private sector holdings of stitutions, and international institutions the money stock (see pp. A 71 and A 71.2 (combined in line 3), and certified and offi of this B ulletin). The sum of these private cers’ checks (line 4)—and to deduct bank sector holdings differs from the money stock float; that is, the sum of cash items in process measure mainly in that (1) the former is net of collection as shown on bank books and of mail float and the latter gross, and (2) Federal Reserve float (line 6). The figure the former measures balances as of single thus obtained differs slightly from the pub points in time (for example, December 31) lished figure for the deposit component of and the latter is on a daily-average basis. the money stock (line 8) because the The remaining lines in column 1 of Table 8 amounts shown for each item are statistically provide the additional items required to independent of the published money stock complete the reconciliation with the flow of figures.3 The difference is indicated in line 7. funds total of private sector holdings. The The addition of the currency component of difference due to the flow of funds estimates the money stock (line 9) completes the being net of mail float—checks deducted reconciliation to the published money stock from deposit owners’ records but not yet figure (line 10). entered on bank records—is shown on line 3 The IPC figure is based on Survey sample data. 12. Line 11 reflects a difference in treatment, The data for other deposit categories were estimated between the flow of funds and money stock using weekly reporting bank and semiannual call re port data. The figure for bank float is also partially series, of balances held by Edge Act corpo estimated in that nonmember banks do not report rations (subsidiaries of U.S. banks engaged their cash items in process of collection on a dailymainly in international activities) and agenaverage basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
464 FEDERAL RESERVE BULLETIN □ JUNE 1971 cies of foreign banks located in the United cers’ checks (line 4), it was assumed that States. Line 13 shows an estimate on a daily- such checks are generated mainly in money average basis of total sector holdings of the market transactions and large payments money stock; line 14 shows the sum of flow among businesses and governments. For of funds estimates of private sector holdings bank float (line 6), it was assumed that, of the money stock on a holder-record basis because business and government deposits and measured as of the last day of the month. have much higher turnover rates than per The difference in the estimates that is due sonal deposits, the volume of bank float to differences in timing between the daily attributable to personal deposits was suffi average of balances for December and the ciently small to be omitted. An opposite balance on the last day of the month is assumption was made for currency holdings, shown on line 15. it being assumed that business holdings are The remaining columns of Table 8 pre negligible.4 sent estimates of the sector allocation of the On the basis of these adjustments, rough various totals of deposits and money stock measures of the ownership distribution of just discussed, starting with the Survey esti the published average money stock estimates mates of sector distribution of gross IPC are obtained (line 10). For the remaining demand deposits (line 1), going to a derived items of reconciliation to the flow of funds estimate of the sector distribution of the sector estimates, deposit balances held by published money stock (line 10), and end Edge Act corporations and agencies of for ing with the flow of funds sector estimates eign banks in the United States (line 11) (line 14). The sector distributions of the were assigned to financial businesses, and items needed for the derivations and recon the sector distribution of mail float (line ciliations in these columns are on a weaker 12) was made on the same basis as that used statistical basis than is the case for the total for distributing bank float. column. Thus, there is little firm information The method of allocation described above available that can serve as a reliable guide in resulted in estimates for financial business, determining how bank and mail float, cur foreign, and State and local government rency, and certified and officers’ checks are categories on line 13 equal to those currently distributed among owner categories. In this in flow of funds accounts for December 31. circumstance, the principle utilized in the The statistical differences appear only in table for the sector distribution for such the nonfinancial business and consumer items was to bring the sector ownership sectors. estimates based on the Survey as close as The estimates derived from the ownership possible to the flow of funds sector esti mates—derived mainly from estimates of 4 The principal business holding of currency pre holder balance sheets—while at the same sumably is in retail trade, and on an assumption that time making the allocation reasonably con retail stores have on hand currency amounting to 1 day’s cash sales, an estimate of holdings for retail sistent with the few known facts about the trade for December 1970 comes to about $1 billion. distribution of these items. In this way, the This was a small part of the $50 billion of currency then outstanding. statistical differences that remain highlight A substantial part of currency in circulation is prob the minimum statistical problems in the ably overseas and therefore part of foreign holdings of the U.S. money stock. No data on such holdings flow of funds estimates. exist and they are not included in the balance of In Table 8, the major items distributed on payments data on international positions that are the the basis of these criteria are marked by basis for flow of funds foreign holdings. In the absence of factual information, the total of currency holdings asterisks. In distributing certified and offi is attributed residually to the consumer sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF DEMAND DEPOSIT OWNERSHIP 465 survey data and the assumed sector distri appears in the table. However, the distribu bution of the adjustment items indicate tion of float and currency made above was larger balances for business and smaller designed to bring the estimates close to holdings for consumers than are now in the gether and any reasonable alternative flow of funds accounts. There is some possi allocation would result in even wider bility that timing is a source of the differ disparity. Thus it seems likely from these ence, resulting perhaps from large wage and early results that the flow of funds distribu dividend payments near the end of the tion of ownership should be shifted, increas month. The total private wage bill in ing the estimated money holdings of busi December after withholding tax deductions nesses and reducing the holdings of was over $35 billion, so there is scope in consumers. This will be worked out when timing for the disparity of $4 billion that more experience is gained with Survey data. TECHNICAL APPENDIX DESIGN OF THE SURVEY fessions (such as medicine or law), and so forth. The consumer category includes all individual and The design for the Demand Deposit Ownership family accounts and all personal trusts not under Survey called for a sample of 413 commercial the control of the trust departments of banks. The banks. Of these banks, 225 were chosen from foreign category encompasses all accounts classi banks that had IPC demand deposits in excess of fied as IPC deposits that are owned by business $100 million in mid-1968. All banks with deposits firms or persons domiciled outside the United over $1 billion were included as were about 43 per cent of the banks in the $100 million to $1 States and its possessions.2 The all other category billion deposit size range. These banks were asked includes such depositors as nonprofit membership to report on a monthly basis. The remaining 188 organizations and nonprofit religious, educational, banks in the sample were chosen on a stratified and scientific organizations; accounts maintained random basis from all other insured commercial by the trust departments of the reporting banks at banks. These smaller banks were asked to submit their own banks are also placed in this category. reports for the last month of each calendar quarter. With respect to the reporting coverage of ac From the sample so structured, it is possible to counts within the sample banks, each bank was develop estimates of IPC demand deposit owner offered the option of reporting on the ownership ship for each month of the year at weekly reporting status either for a sample of its IPC accounts or banks and for the last month of each quarter at for all of its IPC accounts, whichever was more all commercial banks. convenient. (About 80 per cent of the large sample Reporting banks were asked to classify their banks and 70 per cent of the smaller ones chose IPC accounts into five categories: financial busi to report on a full enumeration basis.) ness, nonfinancial business, consumer, foreign, and In those cases in which banks decided to report all other domestic depositors. The financial busi on a sample basis, they were requested to identify ness category includes such businesses as mutual and include all accounts with large balances—large savings banks, insurance companies, securities and accounts being defined either as those with bal commodity brokers and dealers, finance compa ances exceeding $20,000 or the top 2 per cent nies, and holding and investment companies;1 de of the bank’s accounts with the largest balances. posits maintained at the reporting bank by the trust In addition, those reporting banks maintaining departments of other banks are also reported in 2 Not all foreign deposits are included in IPC de this category. The nonfinancial business category posits and thus not all are covered in this Survey. covers such industries as manufacturing, mining, Moreover, because banks experience difficulties in transportation, trade, farming, real estate, the pro- identifying foreign accounts in some instances, the estimate of foreign balances derived from this Survey 1 Demand deposits held by banks are not included may understate the total volume of foreign IPC in IPC deposits and are not covered in this Survey. balances in the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
466 FEDERAL RESERVE BULLETIN □ JUNE 1971 special ledgers of accounts that are homogeneous to report on a daily-average basis, about 20 per or nearly so were asked to supply information on cent on an each-Wednesday basis, and the re these accounts. Finally, the banks reporting on a mainder on a second- and third-Wednesday basis. sample basis were asked to select a random 1 per Of smaller reporters, nearly 80 per cent selected cent sample of accounts from all remaining ac the second- and third-Wednesday basis and only counts not reported as large accounts or special 20 per cent chose the daily-average basis.) ledger accounts. Thus in the case in which banks When a reporting bank submits information on report on a sample of their accounts, this sample a sample of its accounts, these data are blown up includes about 3 per cent of its IPC accounts. Of to reach ownership estimates for all accounts course, since all large accounts are included in the maintained at the bank. And in the case of data sample, the relative proportion of total IPC bal received from banks reporting on either an eachances covered by this sample is substantially Wednesday basis or on a second- and thirdhigher. Wednesday basis, the balances for these days are The Survey has been designed so that the esti averaged to obtain proxy measures of balances mates reflect an average of daily balances main maintained on average during each day of the tained during the reporting month. Banks were month. All individual bank estimates are then used given the option of reporting the ownership classi to obtain estimates for all weekly reporting banks fication of accounts on a daily basis (so that a and all commercial banks. true daily average for the month is reported) or of reporting as of each Wednesday of the month STATISTICAL RELIABILITY OF THE ESTIMATES (which statistical analysis had indicated would An indication of the statistical properties of the yield an adequate estimate of the daily average). estimates of deposit ownership at all commercial However, the smaller quarterly reporting banks banks produced by the Survey can be obtained by (and some of the large monthly reporting banks referring to Appendix Table 1. The figures pre with special reporting problems) were given the sented in the various cells of the table were calcu additional option of reporting as of the second and lated by doubling the standard errors of estimate third Wednesdays of the month. (Of the large for each ownership estimate, dividing this value reporting banks, approximately 45 per cent chose by the value of the estimate itself, and expressing APPENDIX TABLE 1 MEASURES OF VARIATION 1 FOR DEMAND DEPOSIT OWNERSHIP SURVEY ESTIMATES In per cent All commercial banks Quarterly changes Category Outstandings, 1970-71 1970 1971 June Sept. Dec. Mar. III IV I Financial business....................... 7.1 5.5 5.4 5.6 75.0 * 45.2 Nonfinancial business................. 1.7 1.9 1.9 2.0 40.0 19.6 13.6 Consumer..................................... 3.8 3.6 3.5 2.7 46.2 46.0 56.2 Foreign......................................... 8.7 8.4 9.4 8.1 72.2 20.4 69.4 All other....................................... 13.8 8.9 10.0 10.1 * • * Total......................................... 1.3 .7 .7 1.0 24.4 8.2 23.6 Weekly reporting banks Financial business....................... 5.0 4.5 3.3 3.9 22.8 • 59.8 Nonfinancial business................. 2.2 1.3 .7 1.2 74.6 22.1 8.0 Consumer..................................... 4.7 3.6 2.3 2.7 * 16.2 50.6 Foreign......................................... 6.9 7.1 7.7 7.8 19.8 15.6 18.8 7.1 6.3 2.9 5.0 46.0 * * Total......................................... .9 .5 .3 .4 26.0 9.6 9.8 1 Data in the cells of the table have been obtained by doubling the standard errors of estimate (or the standard error of the estimated change), dividing this figure by the estimate of balances outstanding (or by the estimated change in balances), and expressing the resulting figure in percentage terms. * Indicates a figure greater than 100 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
SURVEY OF DEMAND DEPOSIT OWNERSHIP 467 the resulting figure in percentage terms. As may be quarterly changes in financial business balances. seen, the relative sampling variations of the esti It appears, however, that the estimated changes in mates of outstanding balances at all commercial balances held by depositors in the all other cate banks (upper left-hand portion of the table) are gory may be attributable to sampling variation. generally satisfactory. This is particularly the case A similar picture of statistical reliability is for the nonfinancial business and consumer esti presented by the measures of variation for the mates where the measures of variation were quite estimates of balances held by the various owner small in all four quarter-ending months—less than groups at weekly reporting banks 3 in each quarter- 4 per cent in all instances. The measures of varia ending month and for the quarterly changes in tion for the financial business estimates are some these estimates (bottom section of Table 1). The what higher, but they all indicate the strong (95 measures of variation indicate that the 95 per cent per cent) probability that a range plus or minus 7 confidence range for the estimates of balances held per cent on either side of each estimate would by financial businesses, nonfinancial businesses, include the actual volume of balances held by this and consumers is 5 per cent or less on either side category of owners. The measures of variation in of the estimates in all 4 months. The range for the monthly estimates for the foreign and all other the other two owner categories, while somewhat categories are somewhat larger but with only one higher, is less than plus or minus 10 per cent of exception they suggest that the true values for these the estimate. The measures of variation for the balances lie within plus or minus 10 per cent of estimated quarterly changes in ownership balances the estimates. also suggest that the Survey is performing satis The measures of variation for the quarter-to- factorily. All measured changes in nonfinancial quarter changes in ownership balances at all com business and foreign balances appear statistically mercial banks (upper right-hand section of the significant, as do two out of three of the changes table) are also quite encouraging. They suggest in consumer and financial business balances. □ that all the estimated quarterly changes in non financial business, consumer, and foreign balances 3 In order to simplify the table and to shorten discussion, data reflecting the measures of variation for estimates of were statistically significant—that is to say, two ownership balances measured in months other than those standard errors of the changes were smaller than shown in the table and the coefficients of variation for the estimate of change itself. A similar statement month-to-month changes in balances are not covered in the Appendix. These data will be made available upon can also be made about two out of the three request. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Bank Rates on Business Loans Revised Series The Federal Reserve Quarterly Survey of In of administering such loans varied among terest Rates Charged by Banks on Business banks in ways that made difficult the calcula Loans has been revised beginning with the tion of comparable effective rates. For exam February 1971 survey. The revision incor ple, in addition to a stated interest rate porates a number of technical changes in charged on these loans, approximately twocoverage, in sampling, and in methods of fifths of the reporting banks imposed (1) a calculating average interest rates. Although flat charge, or (2) a fee that varied with the the changes have resulted in some disconti line of credit available, or (3) a percentage nuities in the series, the basic structure for fee applied to the line of credit. On the other collecting information is unchanged for the hand, some banks excluded such charges most part. altogether from reported interest rates on The survey data on short-term loans on this category of loans and a few banks the revised basis will be published regularly, omitted reporting of accounts receivable as in the past, in both the B ulletin and loans entirely. Such data problems probably the Board’s E.2 statistical release, which will caused a significant understatement of the also carry survey data for rates on revolving rates on these loans as they entered the sur credit and long-term loans, which had not vey calculations. previously been published. Back data for the A second problem is that with certain added series, as well as the previously pub types of fee arrangements, the effective rate lished data on short-term loans, for the pe of interest on accounts receivable loans riod 1967-70 are provided in the table varied with the maturity and daily-average on pages 476 and 477. size of the loans made under the line of credit. Because of the nature of this survey NATURE OF CHANGES (which reflects terms and conditions at the time the loans are made) and of accounts The most important aspect of the revised receivable loans (for which the average ma series is the elimination of accounts receiva turity, loan size, and outstanding balance ble loans. A recent study of the technical vary from day to day and cannot readily be aspects of the survey indicated a number of measured), there is no practical way to de problems of measuring rates on accounts re termine the effective interest rate accurately. ceivable loans, which made it advisable to A third problem of measuring interest eliminate such loans from the survey: For rates on accounts receivable loans is the one thing, the reporting of special fees and practice of some banks of requiring borrow flat charges that often are collected on ac ers to make all repayments into hypothe counts receivable loans to cover the high cost cated deposits that are credited to the bor rower’s loan account at fixed intervals. This Note.—This article was prepared by Mary F. practice increases the effective interest rate Weaver and Edward R. Fry of the Banking Section by an amount that cannot be measured with of the Board’s Division of Research and Statistics. 468 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
out adding unduly to the complexity of the Banks surveyed the maturities of all dis survey. counted short-term loans made in the sample A fourth problem was associated with the period. On the basis of this information, new rapid rate of turnover of accounts receivable average maturities were adopted, for this loans. Some new loans, for example, are and future surveys, with the assumed ma made to individual customers for as little as turity shortened to 68 days for the 35 re one day. Since the survey calls for reporting porting centers as a whole. In addition, the of all new loans made during a specified formula to calculate effective interest rates period, the rapid turnover of these loans, was modified to reflect annual compounding which carry relatively high interest rates, instead of the quarterly compounding pre gives them undue weight and causes an up viously used in the survey. Other changes in ward bias in average interest rates derived the formula used were minor. from the survey. With the elimination of accounts receiva In view of all these measurement prob ble loans and the shortening of the sample lems, it was felt that rates on accounts re period, weights used for calculating average ceivable loans could not be accurately mea interest rates have been changed. A pre sured in the survey and that if these loans liminary revision of these weights was de were excluded, the survey would provide a rived from the size and area distributions more accurate measure of interest rates on of loans reported in the February survey. other business loans. It should be noted, These preliminary weights will be used initi however, that the survey, excluding these ally in the first three surveys this year. When loans, does not cover all business loans and data for all four surveys in 1971 are avail that the loans excluded probably are higher- able, a further revision of weights will be cost loans on the average than the loans made and data for the 1971 surveys covered. Thus, to the extent that there are will be revised on the basis of these new systematic shifts, in periods of relatively dif weights. The weights as revised will be used ferent tightness of credit, between account for the next 4 years, after which the weight receivable loans and other business loans, ing system will be reviewed again. the results of the survey must be interpreted with care. EFFECTS OF REVISIONS An important result of the changes in the For some, but not all, of the changes em survey has been to reduce the reporting bodied in the revision, it is possible to meas burden on respondent banks. The exclusion ure the impact of the revision on the pub of accounts receivable loans contributed to lished series. The degree of reduction in this as did a shortening of the period to be number and dollar volume of loans caused covered. For most banks the sample period by shortening the sample period cannot be was shortened from the first 15 days in the ascertained from the February survey. Nor survey month to the first seven business days. can one determine the over-all effects of the Refinements were also made in proce revision on changes in short-term rates in the dures for calculating the interest rates used period between the November 1970 and in arriving at the survey averages. Formerly, February 1971 surveys. However, it is pos interest rates for short-term discounted sible to determine the effects on rates of loans were calculated on an assumed ma three of the changes made in the February turity of 90 days. In conjunction with the survey—the exclusion of accounts receivable February 1971 survey, the 12 Reserve loans, the shift to annual compounding in 469 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
TABLE 1 EFFECTS OF SURVEY REVISIONS ON INTEREST RATES, BY TYPE OF LOAN FEBRUARY 1971 Per cent per annum Short-term Revolving credit Long-term Size of loan (in thousands of dollars) Size of loan (in thousands of dollars Size of loan (in thousands of dollars) Item All All All sizes sizes sizes 1 GO- 500- 1,000 100- 500- 1,000 1 GO- 500- 1,000 1-9 10-99 499 999 and 1-9 10-99 499 999 and 1-9 10-99 499 999 and over over over All centers 6.58 8.05 7.49 6.91 6.64 6.35 6.34 7.51 7.06 6.70 6.43 6.30 6.81 8.42 7.58 7.32 6.91 6.64 Average rate on unrevised basis 1. .. 6.75 8.12 7.65 7.02 6.68 6.41 6.47 7.98 7.54 6.98 6.54 6.34 6.90 8.38 7.55 7.37 6.98 6.76 -.17 -.07 -.16 -.11 -.04 -.06 -.13 -.47 -.48 -.28 -.11 -.04 -.09 + .04 + .03 -.05 -.07 -.12 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv- 13 -.14 -.24 -.19 - 11 -.07 -.09 -.33 -.36 -.29 -.16 -.03 + .03 -.01 Discounted loans (revised + .04 + .09 + .06 + .05 + .05 + .03 + .22 + .04 + .02 — 08 - 02 + .02 + .03 + .02 -.02 -.04 -.14 -.12 + .01 + .05 -.01 -.09 -.21 -.07 -.07 -.12 New York City Average rate revised survey.............. 6.26 7.76 7.20 6.57 6.35 6.18 6.25 6.65 6.88 6.54 6.27 6.24 6.81 7.08 6.75 6.80 6.56 6.83 Average rate on unrevised basis 1... 6.27 7.60 7.10 6.50 6.31 6.16 6.26 6.64 6.89 6.54 6.27 6.24 6.81 7.01 6.82 6.78 6.56 6.83 — .01 + .16 + .10 + .07 + .04 + .02 -.01 + .01 -.01 + .07 -.07 + .02 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv- Discounted loans (revised formula)........................... - - fi . - 0 .UA 4 Ji I . I 1 ( 0 L -T + 4- • . 0 ^O 1 Q + +! o 06 i 4- 04 -”41“- . \0J£2. -.01 + .01 -.01 + .07 -.07 + .02 Other Northeast A A v v e e r r a a g g e e r r a at t e e o r n ev u is n e r d e v s i u se rv d e b y a .. s . i . s .. .. 1 .. . . . .. . . 6 7 . .1 8 8 0 8 8 . . 3 2 4 7 8 7 . . 0 7 5 5 7 7 . . 1 3 1 6 6 7 . .1 9 3 7 6 6. . 3 4 9 0 6 6 . . 5 8 7 0 7 8. . 5 7 3 6 7 7. . 9 8 5 7 6 6 . . 9 5 3 6 6 6 . .2 7 8 0 6 6 . . 6 6 4 0 7 7 . . 0 0 9 0 1 9 0 . . 8 3 5 6 7 8 . . 9 0 7 2 7 7. . 5 6 5 2 6 6. . 8 8 0 0 6 6 . . 7 7 2 2 r\ffarpnr'p — .38 — .07 -.30 -.25 -.16 + .01 -.23 + .77 + .08 -.37 -.42 -.04 + .09 + .51 -.05 + .07 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv- -.24 _ T-J _ A(\ —. 34 — .24 — .04 —. 16 + .62 + .21 -.37 -.42 -.04 Discounted loans (revised + .07 + .15 +.11 + .09 + .08 + .05 + .03 + .60 + .10 + .09 -.21 + .01 -.01 -.07 + . 15 —. 13 + . 06 -.09 -.15 -.02 North Central A Av ve er ra ag ge e r ra a t t e e o r n ev u is n e r d e v s i u se rv d e b y a .. s . i .. s . .. 1 .. . .. . . . . 6 6 . . 8 6 3 5 7 7 . . 7 7 7 6 7 7 . .2 4 8 0 6 7 . .0 8 5 2 6 6 . . 6 5 5 7 6 6 . .5 70 4 6 6. . 4 5 8 9 6 6 . . 5 6 3 5 6 6. . 6 9 7 0 6 6 . . 8 4 1 9 6 6 . . 5 5 9 7 6 6. . 4 5 6 6 6 6 . . 9 9 6 2 7 7. . 6 5 1 6 7 7. . 4 3 1 9 7 7 . .2 2 8 9 7 7 . . 5 52 2 6 6. . 7 7 7 7 —. 18 — .01 —. 12 — .23 -.08 — .16 -.11 -.12 -.23 -.32 -.02 -.10 -.04 -.05 -.02 -.01 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv- -.20 *-.09 -.16 -.29 -.13 -.19 -.12 -.12 -.24 -.34 -.02 -.10 -.07 Discounted loans (revised formula)...................... + .04 + .08 + .04 + .05 + .05 + .03 + .01 + .01 -.02 + .01 +.oi +.oi + .02 — .04 -.06 + .04 — .01 470 FEDERAL RESERVE BULLETIN □ JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Southeast Average rate, revised survey............ 6.88 8.23 7.72 7.00 6.69 6.55 6.62 8.00 7.91 7.22 6.28 6.12 7.22 8.37 7.62 7.59 6.50 7.00 Average rate on unrevised basis 1... 7.04 8.20 7.73 7.05 6.66 6.51 6.89 8.01 8.97 8.19 6.28 6.12 7.22 8.10 7.61 7.44 6.50 7.00 Difference........................................... -.16 + .03 -.01 -.05 + .03 + .04 -.27 -.01 -1.06 -.97 + .27 + .01 + .15 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv able ................................... -.05 -.05 -.08 -.11 -.02 -.59 -.03 -.58 -1.06 Discounted loans (revised formula)........................... + .06 + .08 + .08 + .07 + .05 + .04 + .24 Change in weights...................... -.17 -.01 -.01 + .32 + .02 — .48 + .09 + .03 + .01 + .15 Southwest Average rate, revised survey............. 6.59 7.83 7.22 6.82 6.63 6.25 6.74 7.26 7.03 7.63 6.65 6.47 6.99 6.90 7.84 8.06 6.82 6.71 Average rate on unrevised basis 1... 6.72 7.89 7.38 6.83 6.64 6.26 6.90 7.54 7.30 7.59 6.87 6.47 7.04 6.96 7.66 7.90 6.84 6.71 Difference........................................... -.13 -.06 -.16 -.01 -.01 -.01 -.16 -.28 -.27 + .04 -.22 -.05 -.06 + .18 + .16 -.02 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv able ................................... -.07 -.09 -.17 -.03 -rr .04 -.02 -.08 -.27 -.21 + .04 -.22 + .11 + .16 -.02 Discounted loans (revised formula)........................... + .02 + .03 + .01 + .02 + .03 + .01 Change in weights....................... -.08 -.08' .01 — .06 .05 .06 + .07 West Coast Average rate, revised survey............ 6.63 8.38 7.77 7.16 6.77 6.32 6.31 .24 7.15 6.66 6.41 6.25 6.46 7.63 7.21 7.41 6.81 6.32 Average rate on unrevised basis *.., 6.81 8.61 8.04 7.31 6.91 6.32 6.49 .77 7.69 7.06 6.59 6.28 6.57 7.61 7.19 7.30 6.81 6.32 Difference.......................................... -.18 -.23 — .27 -.15 -.14 -.18 .53 -.54 -.40 -.18 -.03 -.11 + .02 + .02 + .11 Accounted for by: Change in rate calculation for: Exclusion of accounts receiv able ................................... -.12 -.21 -.26 -.16 -.14 -.10 .50 -.49 -.37 .18 -.03 + .15 Discounted loans (revised formula)........................... Change in weights....................... -.06 -.02 :.oi + .oi -.08' .03 - . 05 — .03 -.11 -.13 + .02 + .11 1 The rates on an unrevised basis are those that would be obtained by processing the February exclusion of accounts receivable loans; a new method for calculating interest rates on dis survey data according to the procedures used in the previous survey. These averages are not counted loans; a change of weights applied to each category of loans; and a reduced loan entirely comparable with those published for November and earlier periods because of the sample from each reporting bank for which the rate effects cannot be ascertained. BANK RATES ON BUSINESS LOANS 471 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
472 FEDERAL RESERVE BULLETIN □ JUNE 1971 calculations of rates on discounted loans, graphic areas was the elimination of ac and the revision of weights for size of loan counts receivable loans. This change also and geographic areas. For purposes of this accounted for most of the reduction in rates comparison, separate data were collected in by size of loan. In the February survey, re February on the accounts receivable loans spondents reported separate data on 2,290 that are excluded in the revised survey, and short-term accounts receivable loans; these interest rate computations were made in loans accounted for 11 per cent of the total cluding and excluding such loans. Also, number of loans and for 6 per cent of the alternative interest rate calculations were total dollar volume reported (Table 2). The made by applying the formula and weights smaller proportionate reduction in dollar used previously, so that the old series could volume resulting from exclusion of these be compared with the revised series. Table loans reflects the relatively small average 1 summarizes the measurable effects of the size of accounts receivable loans as com revision on the three types of interest rates pared with other short-term business loans. covered in the February survey—short-term, Changes in weights reduced weighted revolving credit, and long-term loans. average rates for all geographic areas, but On short-term loans, as may be noted effects varied by size-of-loan category. The from Table 1, the average rate derived in small rate reduction for New York City re the revised survey for the 35 centers as a flected entirely the change in weights, as re group was 6.58 per cent, or 0.17 percentage spondent banks in this area had not reported point lower than the average rate of 6.75 per accounts receivable loans in the past. The cent that would have resulted in the absence change from quarterly to annual compound of the three revisions for which the impact can be measured. The amount of the differ ing of interest rates on discounted loans ence varies by region from 0.01 percentage tended to raise average rates for all loan point for banks in New York City to 0.38 sizes in most geographic areas. percentage point for those in other Northeast In general, the effects of the various sur centers. vey changes on interest rates on revolving The most important factor reducing the credit and long-term loans were similar to measured average interest rate in most geo those for short-term rates, as Table 1 shows. TABLE 2 EFFECT ON NEW SERIES OF EXCLUDING ACCOUNTS RECEIVABLE LOANS, FEBRUARY 1971 Amount of loans Number In thousands Decrease Area of dollars Decrease Including Excluding accounts accounts Including Excluding In receivable receivable accounts accounts thousands Per cent receivable receivable of dollars Actual Per cent All centers....................... 3,238,664 3,047,996 190,668 5.9 20,205 17,915 2,290 11.3 New York City............... 798,323 798,323 1,543 1,543 Other Northeast.............. 580,177 517,408 62,769 10.8 5,257 4,349 908 17.3 North Central................. 858,489 788,020 70,469 8.2 4,263 3,870 393 9.2 Southeast......................... 282,603 263,464 19,139 6.8 3,118 2,941 177 5.7 Southwest......................... 398,763 378,551 20,212 5.1 4,113 3,678 435 10.6 320,309 302,230 18,079 5.6 1,911 1,534 377 19.7 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
BANK RATES ON BUSINESS LOANS 473 SURVEY RESULTS early 1971, and the smallest in periods of restraint when rates were high, as in 1969. Large banks typically report that they charge In large part, the narrowing of the differ the prime rate on short-term loans to their ential in periods of monetary restraint proba most creditworthy customers and that they bly reflects the fact that an increased per charge higher rates, bearing relatively fixed centage of the loans made during survey differentials above the prime rate, on loans periods are prime rate loans. Contributing to customers of lower credit rating. As the to this has been the tendency for credit de chart shows, average rates for the three cate mands to expand more rapidly at large firms gories of business loans covered in the survey than at smaller ones during business up move fairly closely with the prime rate, al swings. Another factor tending to narrow the though relationships among rates appear to differential in periods of rising rates is the shift with cyclical changes in interest rates. tendency for rates on small loans, which Over the past 4 years, short-term rates typically are high relative to those on large measured in the survey have moved in a loans, to advance less rapidly than those on band of 32 to 58 basis points above the large loans. prime rate. The differential—a maximum of In general, average rates on long-term 26 points—was relatively stable during this period compared with the 291-basis-point loans have been fairly close to those on range over which short-term rates moved. short-term loans. This relationship probably The largest differentials occurred in periods reflects the practice of gearing rates on both of monetary ease when interest rates were such maturities to the prime rate. However, relatively low, as in 1967, late 1970, and major changes in the relationship between BANK RATES on BUSINESS LOANS Data for February 1971 as shown in the revised survey are indicated by dots. Point for February on thin line is the unrevised rate as calculated in Table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
474 FEDERAL RESERVE BULLETIN □ JUNE 1971 long- and short-term rates do occur. These ferentials between rates on small and large tend to show a fairly regular pattern, with loans to decline in periods of rapid advance rates on term loans rising above those on in the general level of rates. The decline was short-term loans during periods of declining particularly large for loans of $1,000rates, such as in late 1968 and in late 1970 $10,000, as compared with loans of $1 mil and early 1971, and falling appreciably be lion and over. This may reflect less tendency low short-term rates during the rapid ad among banks to gear their charges on vance of rates in early 1969. These changing smaller loans to the prime rate, with the relationships are believed to reflect lags in result that such rates change less frequently disbursements that often occur under term- than the prime rate. Moreover, there are ad loan and revolving-credit contracts, although ditional institutional rigidities that influence banks recently are reported to be writing the rates charged on small loans—including more term-loan contracts that gear the in usury law ceilings (which generally apply on terest charges to the prime rate. loans to unincorporated business only and The marked shift from a sizable positive thus would affect rates on small loans most to a negative differential in 1969 resulted heavily). In addition there may be public from a sharp rise in the term loan rate. At relations considerations. The gradations in that time several banks reported that they spreads for loans in various size categories in had started to charge premium rates on term each survey show the expected drop as the loans to some borrowers; in these instances size of loan increases, and these relationships the premium represented the higher cost to remain fairly consistent from survey to the bank of obtaining additional funds in the survey. Euro-dollar market. The differentials be tween short- and long-term rates show ran GEOGRAPHIC DIFFERENTIALS dom fluctuations that may reflect irregu As the level of interest rates has continued to larities in term-loan rates attributable to advance in recent years, there has been a relatively small samples of loans. pronounced diminution of the spreads be Average rates on revolving credits have tween rates reported in the survey for New shown an even closer and more consistent York City banks versus rates at banks in relationship to short-term rates than have Southwest and West Coast cities. The differ those on term loans. This is probably at ential between rates in New York City and tributable in part to the much larger volume the Chicago area remained relatively narrow of revolving credits reported, which would and showed the least change for any area. tend to reduce the impact of any unusual Both areas are well supplied with capital type of loan. On revolving credits, too—ow and with financial institutions geared to the ing to the tendency noted above for rates on national money market. Hence the survey is loans disbursed on older contracts to lag dominated in both areas by banks with rates charged on new loans—the differential heavy concentrations of prime borrowers. between revolving credit rates and short The rate differential for New York City ver term rates tends to show some cyclical vari sus other Northeast cities tends to be the ation. largest for any district, although in recent surveys the New York versus Southeast dif SIZE-OF LOAN DIFFERENTIALS ferential has increased significantly. The most striking aspect of the size-of-loan The change in relationship between rates data in the survey is the tendency for the dif for New York City and the Southeast that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
BANK RATES ON BUSINESS LOANS 475 appeared in data for the recent surveys is only district where this happened) by as surprising. In 1967, rates in the Southeast much as 19 basis points. More recently, how exceeded those at New York City banks by ever, in the surveys for 1970 and 1971, rates as much as 26 basis points whereas in 1969, in the Southeast have again exceeded those they were below rates in New York City (the in New York City by widening margins. APPENDIX TABLE 1 GEOGRAPHIC AREAS AND REPORTING CENTERS FOR REVISED QUARTERLY INTEREST RATE SURVEY Geographic area Reporting center Geographic area Reporting center New York City New York City Southeast Baltimore Richmond Other Northeast Boston Washington, D.C. Hartford and Charlotte Providence Atlanta Buffalo New Orleans Nassau County, N.Y. Nashville Rochester Newark Southwest St. Louis Philadelphia Louisville Memphis North Central Cleveland Kansas City Pittsburgh Oklahoma City and Tulsa Cincinnati Denver Chicago Dallas and Fort Worth Detroit Houston Indianapolis Milwaukee West Coast San Francisco Minneapolis and Los Angeles St. Paul Seattle Portland Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
APPENDIX TABLE 2 BANK RATES ON BUSINESS LOANS, QUARTERLY 1967-70 Per cent per annum Size of loan (in thousands of dollars) All sizes Area and year 1-9 10-99 100-499 500-999 1,000 and over Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov. Feb. May Aug. Nov Short-term loans All centers............. 1 .. 9 .. 6 .. 7 6.13 5.95 5.95 5.96 6.73 6.61 6.58 6.60 6.64 6.48 6.46 6.48 6.33 6.16 6.16 6.17 6.13 5.89 5.89 5.90 5.90 5.73 5.72 5.73 New York................ 5.86 5.67 5.66 5.71 6.55 6.41 6.33 6.37 6.49 6.27 6.25 6.22 6.08 5.88 5.88 5.95 5.89 5.66 5.69 5.70 5.77 5.59 5.58 5.63 Other Northeast___ 6.45 6.32 6.29 6.29 6.75 6.61 6.61 6.59 6.84 6.70 6.70 6.69 6.57 6.48 6.42 6.42 6.39 6.10 6.08 6.19 6.09 6.00 5.99 5.95 North Central......... 6.12 5.91 5.92 5.91 6.80 6.64 6.65 6.67 6.65 6.44 6.41 6.46 6.39 6.13 6.16 6.18 6.17 5.89 5.89 5.87 5.92 5.75 5.76 5.74 Southeast................. 6.07 5.93 5.92 5.94 6.58 6.44 6.38 6.46 6.32 6.22 6.18 6.25 6.05 5.95 5.97 5.96 6.03 5.71 5.78 5.75 5.84 5.74 5.67 5.68 Southwest................. 6.18 6.04 6.01 6.03 6.65 6.63 6.54 6.61 6.50 6.37 6.32 6.36 6.26 6.12 6.10 6.09 6.13 5.97 5.95 5.95 5.95 5.81 5.78 5.82 West Coast.............. 6.26 6.05 6.02 6.03 7.26 7.14 7.12 7.08 6.90 6.86 6.84 6.79 6.49 6.31 6.38 6.34 6.27 6.03 5.95 5.89 6.03 5.78 5.72 5.76 1968 All centers................... 6.36 6.84 6.89 6.61 6.82 7.18 7.35 7.27 6.76 7.21 7.27 7.14 6.56 7.00 7.07 6.80 6.31 6.81 6.90 6.57 6.19 6.68 6.70 6.40 New York................ 6.14 6.60 6.67 6.40 6.71 7.11 7.30 7.16 6.65 7.07 7.14 6.95 6.39 6.82 6.87 6.59 6.15 6.64 6.69 6.40 6.O61 6.52 6.60 6.32 Other Northeast___ 6.73 7.18 7.16 6.95 6.84 7.21 7.49 7.43 7.00 7.48 7.48 7.42 6.85 7.33 7.28 7.04 6.62 7.09 7.14 6.78 6.48 6.90 6.83 6.59 North Central......... 6.35 6.89 6.96 6.69 6.95 7.30 7.35 7.22 6.83 7.26 7.34 7.14 6.62 7.06 7.21 6.87 6.36 6.90 7.08 6.66 6.18 6.76 6.78 6.55 Southeast................. 6.21 6.61 6.74 6.44 6.57 6.89 7.09 6.98 6.43 6.83 6.96 6.85 6.25 6.65 6.78 6.62 6.01 6.53 6.61 6.42 6.04 6.37 6.54 5.75 Southwest................. 6.41 6.87 6.86 6.48 6.75 7.16 7.20 7.14 6.54 7.02 7.08 6.93 6.39 6.85 6.91 6.63 6.27 6.72 6.78 6.48 6.42 6.86 6.72 6.10 West Coast.............. 6.31 6.76 6.86 6.62 7.37 7.68 7.73 7.68 7.00 7.37 7.50 7.33 6.62 6.95 7.11 6.83 6.33 6.80 6.78 6.52 6.03 6.54 6.63 6.40 1969 All centers................... 7.32 7.86 8.82 8.83 7.73 8.22 8.99 9.05 7.70 8.23 9.14 9.20 7.46 8.01 8.96 9.00 7.29 7.84 8.84 8.84 7.16 7.70 8.67 8.66 ,New York................ 7.13 7.66 8.65 8.66 7.76 8.23 9.12 9.22 7.65 8.14 9.12 9.13 7.30 7.81 8.83 8.83 7.13 7.65 8.65 8.74 7.06 7.60 8.59 8.58 Other Northeast___ 7.59 8.18 9.14 9.21 7.88 8.31 9.09 9.16 8.03 8.50 9.49 9.57 7.76 8.31 9.32 9.36 7.48 8.16 9.15 9.18 7.18 7.84 8.77 8.85 North Central......... 7.41 7.89 8.85 8.83 7.79 8.09 8.80 8.77 7.81 8.20 9.14 9.16 7.60 8.07 9.06 9.11 7.49 7.95 8.93 8.81 7.26 7.76 8.72 8.70 Southeast................. 7.01 7.66 8.46 8.58 7.37 7.96 8.59 8.69 7.20 7.91 8.57 8.73 7.09 7.72 8.39 8.55 6.79 7.44 8.48 8.60 6.84 7.45 8.45 8.45 Southwest................ 7.25 7.87 8.85 8.79 7.56 8.27 9.09 9.20 7.42 8.09 8.96 9.02 7.21 7.89 8.83 8.81 7.23 7.80 8.75 8.76 7.18 7.76 8.84 8.66 West Coast.............. 7.35 7.83 8.75 8.81 8.09 8.51 9.47 9.45 7.81 8.23 9.23 9.22 7.54 7.97 8.94 8.95 7.26 7.75 8.82 8.76 7.18 7.70 8.56 8.67 All centers............. 1 .. 9 .. 7 .. 0 8.86 8.49 8.50 8.07 9.17 9.05 9.15 8.89 9.26 9.04 9.07 8.79 9.04 8.73 8.75 8.34 8.87 8.43 8.46 8.09 8.67 8.25 8.25 7.74 New York................ 8.65 8.24 8.24 7.74 9.31 9.05 9.07 8.67 9.12 8.91 8.95 8.60 8.89 8.53 8.59 8.12 8.72 8.31 8.23 7.83 8.57 8.13 8.12 7.59 Other Northeast___ 9.23 8.86 8.89 8.47 9.28 9.23 9.41 9.00 9.60 9.34 9.42 9.09 9.36 9.01 9.01 8.60 9.18 8.72 8.68 8.30 8.91 8.45 8.49 7.99 North Central......... 8.86 8.44 8.47 8.05 8.96 8.80 8.90 8.71 9.24 8.93 8.99 8.72 9.11 8.78 8.79 8.36 8.88 8.44 8.46 8.26 8.71 8.24 8.27 7.78 Southeast................. 8.67 8.44 8.49 8.15 8.82 8.70 8.76 8.72 8.80 8.77 8.79 8.64 8.65 8.49 8.54 8.16 8.54 8.31 8.45 7.95 8.63 8.15 8.15 7.78 Southwest................ 8.87 8.61 8.53 8.08 9.25 9.10 9.08 8.85 9.11 8.90 8.84 8.53 8.94 8.61 8.59 8.26 8.86 8.32 8.48 7.99 8.67 8.58 8.33 7.69 West Coast.............. 8.84 8.42 8.54 8.16 9.61 9.49 9.51 9.41 9.32 9.13 9.19 8.99 8.96 8.72 8.81 8.38 8.98 8.50 8.61 8.12 8.66 8.13 8.28 7.90 Revolving credit loans 1967 All centers................... 6.05 5.85 5.83 5.82 6.95 6.84 6.78 6.93 6.79 6.68 6.66 6.70 6.33 6.22 6.18 6.13 6.01 5.97 5.85 5.87 5.98 5.74 5.74 5.72 New York................. 5.83 5.65 5.65 5.62 6.30 5.95 5.84 6.03 6.01 5.87 5.81 5.91 5.82 5.78 5.73 5.78 5.79 5.54 5.63 5.74 5.83 5.65 5.64 5.59 Other Northeast. 6.17 5.78 6.02 5.98 6.77 6.87 6.66 6.86 6.57 6.46 6.48 6.79 6.59 6.09 6.56 5.93 6.24 5.78 6.09 5.93 5.98 5.60 5.81 5.89 North Central.......... 5.91 5.88 5.86 5.75 6.88 6.72 6.41 6.79 6.54 6.92 6.71 6.57 6.08 6.43 6.37 6.27 5.76 6.34 5.91 5.81 5.88 5.73 5.77 5.65 Southeast.................. 5.99 5.84 5.90 6.14 6.00 5.97 6.00 6.01 6.00 5.98 6.32 6.18 5.83 5.72 5.79 6.01 6.18 6.06 6.13 6.23 5.93 5.71 5.67 Southwest................. 6.27 6.19 6.11 6.51 6.75 6.61 6.95 6.98 6.96 6.64 6.94 6.79 6.49 6.17 6.34 6.45 6.06 6.42 6.12 6.30 6.11 6.00 5.81 6^57 West Coast............... 6.22 5.94 5.89 5.89 7.57 7.36 7.38 7.48 6.97 6.79 6.76 6.79 6.51 6.32 6.20 6.18 6.17 5.95 5.84 5.84 6.13 5.81 5.79 5.78 476 FEDERAL RESERVE BULLETIN □ JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1968 Al N N S W S O l o o c e t o e h e u w u r s n e t t t t h h h r t Y C e w e N C r o a o s e o s r e . a s . t k r n . t s . t . . . . t . t h . . . . . . . r . . . . e . . a . . . . . . . . a . . l . . . . . . . . . s . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 6 6 6 6 . . . . . . . 3 3 0 1 2 4 1 1 7 9 8 2 4 0 7 7 6 6 6 6 6 . . . . . . . 9 3 4 0 6 7 7 1 9 7 2 2 4 4 6 6 6 6 6 6 6 . . . . . . . 9 5 7 7 9 8 8 1 7 8 8 6 6 4 7 6 6 6 6 6 6 . . . . . . . 0 5 4 5 4 3 5 6 9 6 2 6 0 0 7 6 7 7 6 6 6 . . . . . . . 0 9 6 0 3 7 3 5 8 8 6 6 0 4 7 7 7 7 7 6 6 . . . . . . . 7 4 4 6 7 1 8 1 5 6 2 2 4 4 7 7 7 7 7 6 6 . . . . . . . 8 9 3 3 7 4 6 1 1 1 3 6 7 0 7 7 7 5 7 7 6 . . . . . . . 0 4 7 7 7 1 3 5 3 8 2 6 6 2 7 6 6 7 6 6 6 . . . . . . . 9 6 0 1 2 3 8 1 5 8 2 8 0 0 7 7 7 7 7 6 7 . . . . . . . 1 7 3 0 4 3 4 1 1 5 8 7 3 4 7 7 7 7 7 6 8 . . . . . . . 4 3 2 1 6 1 4 9 3 6 2 7 3 4 7 7 7 7 7 7 6 . . . . . . . 0 3 5 0 1 5 2 5 5 5 8 6 6 6 6 6 6 6 6 6 6 . . . . . . . 5 4 5 3 7 5 2 1 7 6 9 6 4 4 7 7 7 7 6 6 6 . . . . . . . 0 9 3 1 8 9 4 1 3 6 4 7 4 6 7 7 7 7 6 7 6 . . . . . . . 0 9 2 4 9 0 6 7 9 6 2 0 4 4 7 6 6 6 6 6 6 . . . . . . . 9 7 9 5 4 8 8 1 5 2 9 8 3 0 6 6 6 6 6 6 6 . . . . . . . 3 3 5 3 1 2 1 7 2 0 2 0 4 0 7 7 6 6 6 6 6 . . . . . . . 5 6 1 9 3 8 5 7 9 6 4 4 2 6 6 6 6 6 6 6 6 . . . . . . . 6 9 8 5 6 7 5 8 7 9 2 4 0 0 6 6 6 6 6 6 6 . . . . . . . 4 3 4 4 4 9 0 5 5 5 3 9 2 4 6 6 6 6 6 6 6 . . . . . . . 2 0 0 2 1 1 0 1 8 7 2 6 4 0 7 6 6 6 6 6 6 . . . . . . . 7 7 6 5 3 5 7 1 3 3 4 7 6 4 6 6 6 6 6 6 6 . . . . . . . 7 7 7 5 6 7 7 3 3 8 7 6 0 0 7 6 6 6 6 6 6 . . . . . . . 1 3 2 4 4 2 3 4 7 7 8 4 6 0 1969 Al O W N N S S l o o c e t o e h e u u w r s e n t t t t h h h r t Y C e w e N C r o a o s e o s r e . a s . k t r n . t s . t . . . . t . . t h . . . . . . r . . . . . . e a . . . . . . . . . . a l . . . . . . . . . . s . . . . . . . . t . . . . . . . . . _ . . . . . . . . . . . . . _ . . . . . . . . . . . _ . . . . . . . . . . 7 7 7 7 7 7 7 . . . . . . . 3 2 2 5 2 1 2 5 3 9 2 2 4 2 7 7 7 7 7 7 7. . . . . . . 6 9 5 6 6 6 7 1 5 5 7 9 8 2 9 8 8 8 8 8 8 . . . . . . . 6 1 6 9 5 5 6 5 3 7 3 0 8 4 9 8 8 8 8 8 8 . . . . . . . 6 5 7 2 6 7 4 3 9 3 2 7 6 0 7 7 7 7 6 6 8 . . . . . . . 5 7 5 7 3 3 8 1 2 6 4 2 6 4 7 8 8 8 8 8 8 . . . . . . . 4 2 5 4 3 4 0 1 3 9 8 8 6 0 9 9 9 8 8 8 8 . . . . . . . 0 8 3 0 5 1 6 1 1 6 2 7 4 0 9 9 9 8 6 8 8 . . . . . . . 1 9 8 3 7 8 0 1 5 5 4 9 2 2 7 7 7 7 7 7 7. . . . . . . 0 3 4 9 9 8 8 1 9 6 6 2 2 4 7 7 7 8 8 8 8 . . . . . . . 8 5 8 1 1 2 3 5 3 8 8 3 6 6 9 9 8 8 8 8 8 . . . . . . . 2 9 0 0 8 2 8 1 1 8 3 6 9 6 9 9 9 9 8 8 8 . . . . . . . 0 0 3 3 2 9 3 5 7 7 9 2 4 2 7 7 7 7 7 7 7 . . . . . . . 5 4 3 6 0 4 2 1 1 7 2 7 2 9 7 7 7 7 7 7 7 . . . . . . . 6 8 8 9 5 8 7 5 8 2 2 9 7 4 7 8 8 8 8 8 8. . . . . . . 8 9 7 8 6 6 4 1 3 8 3 8 8 4 9 8 8 8 8 8 8 . . . . . . . 2 2 8 7 9 7 6 1 1 1 3 3 9 8 7 7 7 7 7 6 7 . . . . . . . 4 2 8 1 0 1 6 1 1 5 8 9 4 4 7 7 7 7 7 7 7 . . . . . . . 7 8 5 7 7 7 7 1 9 9 4 0 0 0 8 8 8 8 8 8 8 . . . . . . . 9 8 7 6 6 5 5 1 3 9 7 0 4 0 9 8 8 8 8 8 8 . . . . . . . 7 6 0 6 7 7 5 1 7 6 6 2 0 0 7 7 7 7 7 7 7 . . . . . . . 2 1 3 1 1 5 1 5 5 3 8 8 7 2 7 7 7 7 7 7 8 . . . . . . . 6 5 5 6 5 6 0 1 3 3 8 6 0 4 9 9 8 8 8 8 8 . . . . . . . 6 0 6 5 2 6 8 1 8 3 9 8 4 0 9 8 8 8 8 8 8 . . . . . . . 2 6 5 5 6 7 5 7 3 3 9 8 9 0 1970 Al W N N S S O l o o c e t o e h e u u w r s n e t t t t h h h r t Y C e w e N C r a o o e s o s r e . s a t . k r t n . s . . t . . . . t . t h . . . . . . r . . . . . . e . a . . . . . . . . a . . l . . . . . . . . . s . . . . . . . . . t . . . . . . . . . _ . . . . . . . . . . . . _ . . . . . . . . . . . . _ . . . . . . . . . . . . 9 8 8 8 8 8 8 . . . . . . . 2 5 5 6 8 7 6 7 6 7 3 9 3 2 8 8 8 8 8 8 8 . . . . . . . 1 8 4 1 1 1 1 5 3 8 2 6 9 4 8 8 8 8 8 8 8. . . . . . . 1 3 8 2 2 4 2 5 8 7 9 9 4 4 7 7 7 7 8 8 8 . . . . . . . 8 2 4 6 9 8 2 3 3 9 2 6 6 4 9 9 9 9 9 8 8 . . . . . . . 4 1 1 2 4 4 2 9 3 6 8 2 4 6 9 9 9 8 8 8 8 . . . . . . . 0 9 4 4 0 3 9 1 1 9 4 2 4 0 9 9 9 9 9 8 8 . . . . . . . 5 7 1 3 2 0 5 1 5 6 2 2 4 0 9 9 9 9 7 8 8 . . . . . . . 9 5 1 4 4 6 4 9 3 8 8 4 6 4 9 9 9 9 9 8 8 . . . . . . . 2 3 1 1 4 6 5 5 5 8 4 6 6 2 9 9 9 9 8 8 8 . . . . . . . 0 8 2 1 0 5 0 7 3 9 8 2 8 2 9 9 9 9 7 8 8 . . . . . . . 1 2 2 8 3 8 6 1 3 3 8 6 4 0 7 9 9 8 8 8 8 . . . . . . . 8 8 3 0 0 9 6 3 5 2 9 2 6 2 9 9 9 8 8 8 8 . . . . . . . 3 1 7 1 7 8 8 1 1 1 3 2 9 2 9 8 8 8 8 8 8 . . . . . . . 1 6 4 6 2 5 1 5 2 9 7 3 9 0 9 8 8 8 8 8 8 . . . . . . . 1 3 4 5 2 3 7 8 6 3 3 8 6 4 7 8 8 8 8 8 8 . . . . . . . 2 7 3 2 0 8 1 1 3 7 3 2 0 4 9 8 8 8 8 8 8 . . . . . . . 6 8 1 4 5 6 6 1 1 1 5 9 3 6 7 8 8 8 8 8 8 . . . . . . . 5 3 2 6 2 1 5 9 3 2 2 6 9 2 7 8 8 8 8 8 8 . . . . . . . 9 5 0 4 3 3 9 9 9 3 9 9 2 0 7 7 7 7 8 8 8 . . . . . . . 9 8 9 1 2 7 5 5 5 3 7 9 2 4 9 8 8 8 8 8 8 . . . . . . . 3 7 5 6 5 5 4 1 1 9 9 7 3 9 8 8 8 8 8 8 8 . . . . . . . 3 3 0 0 7 0 1 1 3 3 3 9 7 4 8 8 8 8 8 8 8 . . . . . . . 2 2 7 2 1 3 2 1 1 3 8 6 4 0 7 7 7 7 7 8 8 . . . . . . . 6 6 8 7 9 1 5 5 8 8 8 8 2 6 i. Long-term loans 1967 Al O S W N l N S c o o e t o e h e u u w r s n e t t t t h h h r t Y e C w e N r C o a o s e o s r e . a s . k t r n . t s . t . . . . t . h t . . . . . . r . . . e . . . . a . . . . . . a . . . . l . . . . . . s . . . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 5 5 6 6 6 . . . . . . . 1 1 9 1 0 8 4 1 5 3 8 8 6 4 5 6 5 6 6 5 6 . . . . . . . 0 8 2 9 2 9 1 1 1 5 8 3 9 7 5 5 5 6 6 6 6 . . . . . . . 0 0 7 2 8 9 1 3 7 9 7 8 0 0 5 5 6 6 6 6 6 . . . . . . . 0 1 9 8 1 6 3 1 1 7 8 2 6 2 7 6 5 6 6 5 6 . . . . . . . 6 8 6 9 9 9 5 5 3 2 7 9 6 0 6 6 6 6 6 6 6 . . . . . . . 1 5 1 3 3 9 4 1 1 7 7 6 4 0 5 6 6 6 6 6 6 . . . . . . . 2 7 8 3 2 3 5 5 9 6 6 0 2 0 7 5 6 6 6 6 6 . . . . . . . 9 1 6 3 5 5 5 5 4 8 8 3 3 2 6 6 6 6 6 6 6 . . . . . . . 6 7 5 8 8 4 7 1 1 2 9 4 4 4 7 6 6 6 6 6 6 . . . . . . . 1 0 5 1 4 4 4 1 7 7 8 7 7 8 6 6 6 7 6 6 6 . . . . . . . 4 0 1 3 3 3 2 1 1 3 9 6 2 2 6 6 6 5 6 6 6 . . . . . . . 5 5 7 8 5 7 5 8 8 8 2 4 3 4 5 5 6 6 6 6 6 . . . . . . . 1 0 9 3 0 8 0 1 5 9 8 0 8 0 6 6 6 6 6 6 6 . . . . . . . 0 5 3 1 1 1 0 5 3 6 6 9 4 4 5 7 6 6 6 6 6 . . . . . . . 9 0 3 1 0 2 5 1 5 8 0 7 4 0 6 6 6 6 6 5 6 . . . . . . . 8 4 3 5 9 3 3 1 7 5 7 4 4 4 6 6 6 6 6 6 6 . . . . . . . 6 1 3 2 0 0 1 5 9 7 7 2 0 0 5 6 6 6 5 5 5 . . . . . . . 8 5 9 0 5 8 6 1 3 6 0 0 0 0 5 6 6 5 5 5. . . . . . 7 9 8 1 8 7 1 6 3 8 8 2 6 5 6 6 6 6 . . . . . . 8 4 2 6 1 1 5 3 9 7 6 7 5 5 6 5 6 6 . . . . , , . . ! . . 0 1 6 3 6 1 1 7 1 9 0 7 5 6 5 6 6 5 5 . . . . , . , . . , . . . , 0 7 0 4 8 9 8 1 5 5 7 2 4 0 5 6 6 6 5 5 5 . . . . . . . 7 0 7 1 8 9 8 1 1 5 5 8 6 0 * 5 5 5 5 5 6 . . . . . . 8 1 8 9 8 9 9 8 7 6 4 0 1968 Al O N S S N W l o o c e t o e h e u u w r s n e t t t t h h h r t Y C e w e N C r o a o e s o s r e . s a . t k r n t . s . t . . . . h t . . t . . . . . r . . . . . . e . a . . . . . . . . a . . l . . . . . . . s . . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 6 6 6 6 . . . . . . . 6 2 6 4 2 0 3 1 5 5 7 3 9 9 7 7 6 6 6 6 6 . . . . . . . 7 0 0 7 6 3 8 3 7 9 8 0 4 0 7 7 7 7 6 6 6 . . . . . . . 6 0 7 1 2 8 9 3 7 6 6 2 9 2 6 6 6 6 6 6 6 . . . . . . • 9 4 7 9 8 9 8 7 9 8 2 2 6 8 6 6 6 6 6 6 6 . . . . . . . 7 9 6 8 8 5 3 1 3 7 2 9 7 4 7 7 7 6 7 6 6 . . . . . . . 0 1 8 9 3 0 9 5 5 7 6 8 4 4 7 7 7 7 7 6 6 . . . . . . . 4 7 2 3 7 5 2 1 2 7 2 2 6 4 7 7 7 7 6 6 6 . . . . . . . 0 5 0 5 3 5 0 9 8 6 6 6 6 4 7 6 6 6 6 6 6 . . . . . . . 0 7 8 3 8 8 9 1 8 8 2 9 2 4 7 7 7 7 6 6 6 . . . . . . . 7 7 2 4 3 9 1 1 1 3 7 9 0 4 7 7 7 7 6 7 6 . . . . . . . 4 4 2 4 9 8 8 1 1 5 6 6 6 4 7 7 7 7 7 7 6 . . . . . . . 0 4 2 0 2 6 0 5 3 6 8 4 4 9 6 6 6 6 6 6 6 . . . . . . . 6 7 5 7 3 5 2 5 8 7 8 9 6 0 7 7 7 7 6 6 6 . . . . . . . 0 9 2 0 7 9 0 1 5 5 8 7 2 4 7 7 7 6 7 7 7 . . . . . . . 2 2 4 0 1 6 2 1 5 3 9 4 9 0 7 7 6 6 6 6 6 . . . . . . . 0 9 8 8 2 9 9 2 3 3 6 7 3 4 6 6 6 6 6 5 6 . . . . . . . 6 5 4 0 9 3 3 3 7 6 6 7 0 0 7 6 6 7 6 6 6 . . . . . . . 8 6 4 1 5 7 4 7 3 2 8 6 7 0 7 7 7 6 6 7 7 . . . . . . . 2 1 0 2 6 7 0 1 8 9 9 7 6 2 7 7 7 6 6 6 6 . . . . . . . 8 2 0 6 9 7 2 8 3 9 6 8 2 4 6 5 6 6 6 6 6. . . . . . . , , , . 0 7 0 2 5 6 6 1 1 5 8 9 0 0 7 7 6 6 6 6 6 . . . . . . . , , , , , 2 7 2 1 7 6 0 1 5 3 5 3 2 0 7 7 6 7 8 6 6 . . . . . . . 0 8 0 1 9 2 6 8 8 0 7 4 4 0 6 6 6 6 6 6 6 . . . . . . . 7 2 8 5 9 7 9 3 8 6 0 0 4 0 1969 Al N N l O S S W c o o e t o e h e u u w r s n e t t t t h h h r t Y e C w e N C r o a o s e s o e r . a s . k t n r . t s . . . t . . t . t . . . h . r . . . . . . . . . a e . . . . . . . . . . l a . . . . . . . . . . . . s . . . . . . . . . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 7 6 5 7 6 . . . . . . . 4 8 8 6 5 1 3 5 6 2 4 4 0 0 7 7 7 7 7 7 7 . . . . . . . 9 7 9 8 7 4 7 1 7 7 3 6 0 0 9 7 8 8 8 8 8 . . . . . . . 9 7 4 6 8 0 5 5 8 3 6 6 8 0 9 9 9 8 8 8 8 . . . . . . . 4 2 7 8 0 8 5 1 5 5 7 3 6 0 7 9 7 7 7 6 6 . . . . . . . 2 9 6 6 4 2 7 1 5 7 9 3 7 8 7 7 6 7 8 8 6 . . . . . . . 9 7 6 7 9 0 3 1 5 8 8 7 7 3 9 9 6 8 8 8 8 . . . . . . . 4 3 1 9 7 7 9 1 1 6 7 7 0 0 9 8 8 8 8 8 8 . . . . . . . 7 9 0 3 8 5 7 7 8 3 3 4 2 2 7 7 7 6 7 6 8 . . . . . . . 5 8 4 9 7 6 1 1 5 9 2 4 0 0 7 7 7 8 8 8 8 . . . . . . . 3 7 0 0 1 6 6 3 6 8 9 2 9 2 9 9 8 8 8 8 8 . . . . . . . 0 1 6 3 9 6 6 5 5 8 3 3 0 0 9 9 9 9 9 8 8 . . . . . . . 2 0 3 2 0 9 5 1 7 2 6 4 4 4 7 7 7 7 7 7 7. . . . . . . 6 7 5 4 1 3 3 1 9 2 4 2 9 0 7 7 7 7 7 8 8 . . . . . . . 9 0 9 8 9 6 0 1 5 5 7 9 7 0 7 8 8 8 8 8 8 . . . . . . . 9 9 6 4 6 6 9 7 9 9 8 2 4 4 8 8 8 8 8 8 8. . . . . . . 7 6 8 8 2 4 7 1 3 3 8 6 2 4 7 7 7 7 6 7 7 . . . . . . . 5 9 4 4 7 5 3 1 5 9 9 4 0 4 7 7 7 7 7 8 8 . . . . . . . 8 9 7 4 0 6 0 1 1 7 8 8 4 0 7 8 8 8 8 8 8 . . . . . . . 0 7 7 7 9 9 6 1 9 7 3 0 0 4 9 9 7 9 9 8 8 . . . . . . . 4 2 4 0 0 5 5 5 5 2 8 2 4 0 7 7 7 6 6 6 5 . . . . . . . 4 8 5 6 6 3 3 7 5 6 9 9 0 0 7 7 7 7 7 7 6 . . . . . . . 9 6 9 6 9 6 8 7 8 3 5 2 2 2 9 8 8 8 8 8 8 . . . . . . . 7 0 5 9 4 6 1 1 5 7 3 7 6 2 9 9 9 8 8 8 8 . . . . . . . 0 3 1 8 8 5 7 5 4 4 2 6 0 2 1970 Al N l O N S S W o c o e t o e h e u w u r s n e t t t t h h h r t Y e C w e N r C o a o s e o s r e . a s . k t r n . t s . . t . . . . t t h . . . . . . r . . . . . . . e a . . . . . . . . . . a l . . . . . . . . . . . s . . . . . . . . . t . . . . . . . . . _ . . . . . . . . . . . . _ . . . . . . . . . . . . _ . . . . . . 7 8 8 8 8 8 8 . . . . . . . 8 9 6 5 8 7 1 1 5 7 3 9 2 4 7 8 8 8 8 8 8 . . . . . . . 6 3 2 3 5 4 6 5 5 5 9 9 6 2 9 9 8 8 8 8 8 . . . . . . . 2 8 2 2 1 6 5 9 9 3 2 6 6 0 7 8 8 8 8 8 8 . . . . . . . 9 3 2 3 6 2 3 1 5 8 9 8 9 8 7 9 9 6 8 8 8 . . . . . . . 1 1 0 2 1 4 5 1 1 5 5 3 9 4 9 9 8 8 8 8 8 . . . . . . . 8 7 5 1 7 7 6 1 9 9 3 4 6 4 1 9 9 9 8 8 8 0 . . . . . . . 5 6 3 7 1 4 4 1 5 2 2 9 9 41 9 9 7 8 8 8 0 . . . . . . . 1 1 6 3 3 4 2 3 6 3 4 9 8 4 9 7 9 9 9 8 8 . . . . . . . 6 4 5 9 4 2 8 7 8 8 2 3 2 0 9 8 8 8 8 8 8 . . . . . . . 3 7 7 9 7 9 8 1 1 3 2 2 0 0 9 9 7 8 8 8 8 . . . . . . . 2 2 9 8 4 8 9 5 8 3 2 6 4 4 8 8 8 8 8 8 8 . . . . . . . 7 7 6 6 9 4 6 5 5 8 2 6 0 6 9 9 8 8 8 8 8 . . . . . . . 2 0 0 9 9 8 7 1 1 7 3 4 6 4 8 8 8 8 8 8 8 . . . . . . . 5 6 4 5 0 9 6 6 7 8 2 4 0 0 9 9 7 8 8 8 8 . . . . . . . 6 3 3 2 5 5 7 1 1 5 9 7 4 4 7 8 8 8 8 8 8 . . . . . . . 8 5 2 4 7 3 1 5 7 7 6 2 9 0 9 6 8 8 8 8 8 . . . . . . . 3 5 6 8 5 5 6 1 7 8 0 4 4 4 9 8 8 8 8 8 8 . . . . . . . 7 0 9 4 5 5 4 1 5 9 2 2 2 4 9 7 8 8 8 8 8 . . . . . . . 5 0 9 9 5 7 7 5 7 9 0 2 0 0 7 7 7 8 7 7 8 . . . . . . . 5 3 6 7 6 5 9 3 8 9 7 6 8 7 9 7 8 8 8 8 8 . . . . . . . 4 2 6 5 5 8 3 9 9 7 4 2 9 4 7 8 8 8 8 8 8 . . . . . . . 5 5 4 3 3 1 1 5 9 3 2 4 4 2 9 9 7 8 8 8 8 . . . . . . . 8 8 3 2 6 6 0 1 5 3 8 2 0 0 7 8 8 8 8 8 8 . . . . . . . 9 3 0 8 4 3 3 1 5 9 6 5 7 3 Note.—All data are on the unrevised basis. BANK RATES ON BUSINESS LOANS 477 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress Statement by Arthur F. Burns, Chairman, quil stage of economic expansion. American Board of Governors of the Federal Reserve banks, finding their deposits running off as System, before the Committee on Banking, short-term market rates of interest rose Housing and Urban Affairs, U.S. Senate, above the Regulation Q ceilings, deemed it May 19,1971. advantageous to borrow funds from their branches abroad in order to meet domestic I appreciate this opportunity to appear be demands for credit. The branches in turn fore you on behalf of the Board of Governors bid for funds in the Euro-dollar market, and to discuss recent developments in the inter the interest rates they offered were attractive national monetary system. enough to induce foreigners, mostly in I should like to begin by sketching in the Europe, to shift out of assets in their own background of the events of the past few currencies into dollars. The result was that weeks. A careful look at the background upward pressure was exerted on interest will assist all of us in maintaining perspective rates in some European countries and for on the dramatic happenings in the fore eign central banks experienced a reduction ground. in their dollar reserves. The basic fact to keep in mind can be It is this process that was reversed over stated simply: on top of an underlying and the past year. long-lasting deficit in our balance of pay Once excess demand for goods and ments, there has been a massive flow of services was brought under control in the short-term funds from the United States to United States, the Federal Reserve shifted its Europe within the past year. policies progressively away from severe I shall return later to a discussion of the restraint and toward moderate ease, in order underlying imbalance in our payments to assure that the desired cooling off of position. By itself, this imbalance is nowhere demand conditions did not go so far as to near large enough to have created a crisis. create a cumulative recession. Meanwhile, Let us first focus, therefore, on the sub many European countries experienced an stantial flow—perhaps I should say reflow— intensification of economic activity com of short-term capital across the Atlantic. bined with a strong acceleration of wage costs. As a result, monetary policies were SHORT-TERM CAPITAL FLOW tightened in Europe in the latter part of 1969 and in 1970. The short-term capital that has moved from In these circumstances, short-term interest the United States to Europe in the past rates fell in the United States relative to year largely represents funds that had shifted Europe. American banks found that they from Europe to the United States during 1969 when monetary policy was much could now attract funds at home at lower tighter here than in Europe. At that time, cost than what they were paying in the Euro while both fiscal and monetary policies in dollar market, and they therefore started to our country were aimed at combating repay what they had earlier borrowed from excess demand, Europe was in a more tran their branches. Meanwhile, European bor 478 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
rowers—both private corporations and gov large volume into foreign reserves and the ernmental entities—were finding that they efforts of foreign central banks to combat could avoid domestic credit stringency and inflation were to some degree undermined. pay lower interest rates by borrowing in One other aspect of this flow should be the Euro-dollar market. The massive repay mentioned. The differential in interest rates ments of liabilities by U.S. banks to their between the United States and Europe, in branches were the result not only of a push cluding the Euro-dollar market, led a num from the United States, where monetary ber of central banks to shift dollar reserves policy was easing, but also of a pull from held in the United States to higher yielding Europe, where credit conditions remained deposits in the Euro-dollar market. Whether tight. they engaged in this practice directly or Thus, what we have been faced with in the through the Bank for International Settle past 2 years has been a disparity in the ments, the result was to intensify the problem phasing of the business cycle in Europe and caused by the flow of short-term capital the United States. Given the existence of across the Atlantic. Such placements of cen such a disparity, it is understandable that tral bank foreign exchange reserves in the there has also been a disparity in monetary Euro-dollar market made funds available to conditions, first one way and then the other. European borrowers—thus tending to un In a world of convertible currencies in which dermine tight money policies in Europe— many business corporations and financial and led to the creation of official dollar hold institutions command large sums, differences ings abroad on top of the dollar reserves that in monetary conditions can induce sizable originated in the U.S. balance of payments movements of short-term capital. These deficit. swings in short-term capital have no doubt been facilitated by the existence of the Euro ACTIONS TO DEAL WITH THE CAPITAL FLOW currency markets. But it would be a mistake to believe that the existence of these markets As I have already noted, the flow of short caused the flows. The cause lies in the differ term funds abroad was a result of a U.S. ence in phasing of basic economic and push as well as a European pull. For our monetary conditions. part, the U.S. monetary authorities took The major pull on short-term funds came various actions designed to reduce or inter from Germany, where the central bank made cept the flow of short-term capital. The especially strong efforts to restrain the avail motivation for such actions was to moderate ability of domestic credit but where private the U.S. balance of payments deficit and the borrowers were quite free to seek loans attendant build-up of dollars in the hands of abroad. There was thus a reciprocal inter foreign central banks. action: decisions by U.S. banks to shift I shall merely identify, without discussing from more costly liabilities in the Euro at length, the actions taken by the U.S. dollar market to less costly liabilities at home Government. released funds for lending to European com panies; but the demand for funds by these (1) The Federal Reserve’s Euro-dollar companies put upward pressure on Euro regulations, first adopted in 1969 in order dollar rates and increased the incentive for to check the inflow from Europe, contained U.S. banks to repay their Euro-dollar lia a feature—automatic downward adjustment bilities. In the process, dollars moved in of the reserve-free base—that provided some 479 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
480 FEDERAL RESERVE BULLETIN □ JUNE 1971 incentive for banks to hold on to their Euro discount rates in early April. Short-term dollar liabilities. rates on market instruments also declined. (2) In November 1970 the Federal Re serve raised the marginal reserve require THE SITUATION ON THE EVE OF THE ment on bank borrowings of Euro-dollars CRISIS above the reserve-free base from 10 to 20 By early April a convergence of interest per cent. This measure reminded banks that rates was well under way, and we had reason preservation of the reserve-free base might to believe that we had passed the period of be of value to them. maximum capital flow from the United (3) The Federal Reserve extended the States to Europe. In fact, our statistics show automatic downward adjustment to reservethat in April the flow of dollars from our free bases of banks on the so-called 3 per banks to Europe subsided markedly. Not cent basis and gave these banks time to only that, but plans were well advanced to acquire Euro-dollar liabilities. check further creation of Euro-dollars by (4) Federal Reserve open market pur foreign central banks and to assist, through chases were conducted, insofar as practi the U.S. Treasury, the recycling of dollars cable, in coupon issues rather than Treasury from Europe to the United States. bills, so as to moderate downward pressure Unhappily, this situation of relative calm on short-term interest rates without inter in foreign exchange markets was disturbed fering with the basic objectives of monetary by various news items, beginning with re policy. ports towards the end of April about a dis (5) Since mid-March, a moderate ad cussion among the Finance Ministers of the vance of short-term interest rates was European Economic Communities concern tolerated by the Federal Reserve, mainly for ing a proposal for the EEC currencies to domestic reasons, but partly also because it float together against the dollar. A little helped to narrow the gap between U.S. and later, five economic research institutes of European interest rates. Germany issued simultaneous reports rec (6) The Treasury Department, in its ommending that the Deutsche mark be per debt management operations, placed more mitted to float or be revalued. And the stress on issuing short-term securities, there German Economics Minister was reported by avoiding upward pressure on long to have characterized these recommenda term—but not on short-term—interest rates. tions as constructive. The background for (7) The Export-Import Bank and the these developments is quite clear: the in Treasury issued $3 billion of securities to tensification of inflationary pressures had foreign branches of American banks. These given rise to a major political problem in special issues intercepted funds that would Germany and exchange rate action came to otherwise have probably landed in foreign be regarded by some prominent men of central banks. affairs as an appealing solution to this Meanwhile, European central banks acted problem. constructively to narrow the differential in These events were sufficient to generate interest rates. The central bank in Germany an enormous wave of speculation about a and in a number of other countries, moti possible upward move of the D-mark and vated by varying combinations of domestic other currencies. Several European central and external considerations, reduced their banks ceased intervening in the exchange Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 481 markets and, after a Brussels meeting on such a persistent underlying deficit not May 8 and 9 of the Common Market existed, the recent crisis would not have authorities, Germany and the Netherlands been interpreted, as it was in some quarters, decided to let their currencies fluctuate as a dollar crisis. beyond the customary margin, while Switzer The underlying U.S. deficit, like the short land and Austria revalued, and Belgium term capital flow, is attributable to actions adapted its dual-exchange market system to and policies of other countries as well as to the new situation. France and Italy decided those of our own country. The United States to leave their exchange policies unchanged. cannot restore equilibrium to its balance of payments without acceptance or comple THE PRESENT SITUATION mentary actions abroad. But we must do what it is in our power to do, while we The options open to the German authorities make efforts to persuade other countries appeared to be either to introduce controls to complement our actions. on the inflow of capital or to take action in What then can we do to improve the the exchange rate field. They chose the international position of the dollar? I see latter but agreed with their Common Market no real conflict between our domestic and partners to deliberate by July 1 on appro our balance of payments objectives. The priate measures to discourage inflows of frequently suggested prescription of raising capital and to neutralize their effects on the interest rates would not meet our lasting internal monetary situation. needs at home or abroad. How long the D-mark and the guilder will (1) The overriding need is to restore float is uncertain and is, of course, a matter price stability even as the present slack in for determination by the authorities of those our economy is taken up. I believe, with countries in accordance with International growing conviction, that a cogent incomes Monetary Fund rules. policy is a necessary part of the effort to It is much too early to evaluate the effects restore price stability. of the crisis. We do know that it has gen (2) Until a better price performance erated strong resentments both among Euro makes it possible for us to rebuild a healthy pean governments and toward the United trade surplus, we must be prepared to main States. Whether or in what ways these senti tain our restraints on private capital outflow. ments will affect the future behavior of I can think of nothing that would arouse nations remains to be seen. We can, how greater resentment abroad and weaken the ever, draw some lessons for our own dollar more than an attitude of neglect that policies. included dismantling or even relaxing our existing programs to restrain the outflow of LESSONS FROM THE CRISIS U.S. capital. As I have already stressed, the flow of dollars (3) We need to persuade other nations to Europe in the past year has to a major to relax promptly the restrictions on their extent taken the form of short-term funds imports and on investments abroad by their responding to differences in monetary con own citizens, besides undertaking a sig ditions, which in turn reflected differences in nificantly larger contribution to the defense business cycle phasing. Nevertheless, this of the Free World. flow came on top of a persistent deficit in (4) In the future, we must work with our underlying balance of payments. Had other nations to try to bring about smaller Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
482 FEDERAL RESERVE BULLETIN □ JUNE 1971 divergences of monetary policies. While Fourth, the continuing reduction of our many Europeans feel that the United States troops in Vietnam is diminishing the military depended excessively on monetary ease in drain on our balance of payments. the past year, there are surely grounds for Fifth, the bulk of the short-term capital holding that the Europeans relied excessively outflow is now behind us. U.S. banks have on monetary stringency during this period. reduced their liabilities to their branches A more active use of fiscal policy by each from over $14 billion in early 1970 to about major country in the interest of its own $2 billion presently. Thus even before our economy could, if found feasible, materially underlying payments position improves, our reduce divergences in monetary policies and deficit on the official settlements basis should thereby limit short-term movements of funds fall sharply from its rate of the last year or and payments imbalances. so. (5) At the same time, measures can be These favorable prospects can be has adopted to offset the effects of those short tened, as I have suggested earlier, if they term capital flows that cannot be prevented. are accommodated to by other countries. Such measures might include issues of The balance of payments is, by definition, a securities by the U.S. Government abroad to flow between countries or regions. The U.S. absorb funds from the Euro-dollar market, deficit is the rest of the world’s surplus. The and the provision of improved investment rest of the world must be prepared to see outlets in the United States for foreign cen its surplus decrease if the U.S. deficit is to tral bank reserves. decrease. This simple arithmetic truism has important policy implications for our major CONCLUSION trading partners as well as for us. Let me say in closing that, despite recent Statement of J. L. Robertson, Vice Chair events, I see no reason for gloom about our man, Board of Governors of the Federal balance of payments as we look ahead. Reserve System, before the Subcommitee on First, our price performance is likely to be International Trade of the Committee on better than that of many other industrial Banking and Currency, House of Repre countries, especially if we adopt a stronger sentatives, May 19, 1971. incomes policy. This will permit us to regain competitive strength that we probably lost in the second half of the 1960’s. Mr. Chairman, I am pleased to appear Second, our receipts of investment income before your committee to discuss with you from abroad have been rising rapidly. We the views of the Board of Governors on H.R. expect this to continue even as rewards from 8181. The Board has a strong interest in this investment at home, which affect both our bill because two of its three titles would capital and current accounts, loom larger. directly affect important aspects of our Third, we have seen in recent years a large operations. Title I would require the Federal increase in foreign investment in the U.S. Reserve to grant credit, under certain speci stock market. This too should continue, fied interest rate spreads, to any federally provided we maintain a strong and healthy insured bank seeking funds to finance the economy and take measures to prevent re production or sale of goods for export from currences of the sort of speculative crisis that this country. Title II would require the Fed has occurred recently. eral Reserve to exclude from the coverage Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 483 of its Voluntary Foreign Credit Restraint term paper, 4 per cent. Under this arrange (VFCR) guidelines any credit extended by ment the spread to the commercial bank banks or other financial institutions to (i.e., the difference between the rate charged finance exports of U.S. goods. the customer and the rate at which the loan Governor Brimmer and I would like to was discounted by the Reserve Bank) would present the Federal Reserve position on be allowed to range from 3A to 2 Vi per these two sections of the bill in two parts. I centage points, depending on the remaining will comment first on Title I. Although I was maturity of the loan, whether the exports responsible for managing the Board’s VFCR involved were destined for a developed or a program in its early years, Governor Brim developing country, and whether the loan mer has had responsibility for its adminis was guaranteed or insured by the Exporttration since mid-1968—and I might add Import Bank. that he has done an excellent job of it. It is, The extent to which U.S. banks would therefore, more appropriate for him to com take advantage of such an opportunity to ment on that part of the bill. discount their export loans could be expected Another topic of special interest to our to vary with domestic interest rate conditions Board, which I understand your subcom since banks would be limited as to the in mittee is also considering, is the question terest rate they could charge the exporter whether the Export-Import Bank should be and still use the Federal Reserve facility. placed outside Federal budget totals and At times when banks were highly liquid and ceilings on expenditures and net lending. time deposits or other funds to finance their While Title III of H.R. 8181 contains several loans could be obtained in the market at amendments broadening the authority of the rates below the prescribed Federal Reserve Export-Import Bank, it leaves the budgetary minimums, there would be little disposition status of the Bank unchanged. H.R. 5846, to take advantage of the facility. But in on the other hand—which I understand is periods when bank funds were more costly also on your subcommittee’s agenda—would than the maximum 6, 5, and 4 per cent take the Bank out of the budget totals. Near discounting rates specified, banks would be the end of my remarks I would, therefore, encouraged to use the facility both to make like to reiterate briefly the Board’s position, new export loans and to unload their hold already communicated to other committees ings of outstanding export paper on the of Congress, supporting retention of the System. Bank in the budget. The opportunity to obtain instant liquidity by unloading export loans on the Federal HOW TITLE I WOULD WORK Reserve would, of course, be quite valuable Title I of the proposed bill would, in effect, to a bank in periods when monetary policy provide any federally insured bank auto was in a posture of anti-inflationary restraint. matic access to Federal Reserve credit in It should be noted in passing, however, that amounts limited only by the volume of ex this advantage would be available only to port paper in the bank’s portfolio. Such a relatively small number of institutions. The paper would be discounted by Federal Re bulk of U.S. foreign lending is carried on by serve Banks at the discount rate or 6 per less than 200 banks, and most of the dollar cent, whichever was lower, for short-term volume of export financing is concentrated paper. For 1- to 5-year paper, the maximum in a much smaller number of large city rate would be 5 per cent; and for longer- banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
484 FEDERAL RESERVE BULLETIN □ JUNE 1971 Where banks did unload outstanding ex brought under surveillance by the regional port loans in periods of general monetary Federal Reserve Bank and advised to sell restraint, the reserve funds they so acquired sufficient assets to repay the Federal Reserve would most likely be used to support addi borrowing. In short, the opportunity to tional lending to preferred customers for borrow is a privilege provided only so long domestic purposes rather than to export as a bank uses it to acquire temporary customers. However, the combination of low liquidity. If the bank attempts to stretch its maximum discount rates and fixed spreads use of Federal Reserve credit to finance asset would at the same time assure unusually holdings on a more permanent basis, the favorable rates on new export loans. In these privilege is withdrawn. circumstances foreign customers who might normally finance their imports from the EVALUATION OF TITLE I United States in their own countries would The preceding sketch of the way in which the be perfectly free to seek and, so long as the proposed Title I facility would work raises bargain rate relationships were maintained, serious doubts about the advisability of its to obtain through their American bankers enactment. Because the Title I arrangements unlimited credit from the Federal Reserve would provide automatic liquidity to the to finance imports. export loans held by any insured bank, they It is important to distinguish the basic could seriously inhibit general monetary difference between this proposed discount policy at times when the Federal Reserve facility for export loans and the operation was seeking to restrain inflation. At such of the existing Federal Reserve discount times, banks would be likely to unload their window. As already noted, under the pro outstanding export loans on the Federal posed facility a bank would have the right Reserve as a means of continuing to meet to obtain Federal Reserve credit, at its own the heavy credit demands of their domestic option and at guaranteed maximum rates, customers. so long as it possessed or could generate In addition, banks would very likely con export loan collateral eligible for discount tinue making new export loans, despite the ing. Such credit could be used in turn to conditions of general monetary restraint. finance a more or less permanent expansion Foreign customers would be attracted by the of domestic lending. bargain rates and U.S. banks could im The purpose of the Federal Reserve dis mediately unload any new loans made on count window, on the other hand, is simply the Federal Reserve. Not only would this to provide member commercial banks with provision of Federal Reserve credit be auto temporary liquidity, as needed to adjust matic, the large banks receiving it would their reserve positions and help meet weekly gain a discount interest rate advantage over average reserve requirements. The window other banks whenever the maximum dis is not designed to provide credit for the counting rates on export loans were below purpose of inducing an expansion in bank the regular Federal Reserve discount rate lending. Consequently, borrowings at the discount window are limited in maturity to and rates on other short-term sources of 15 days or less. If any particular member bank funds. bank returns to the discount window too When banks transferred export loans to frequently and appears to be becoming “a the Federal Reserve, high-powered central continuous borrower,” its management is bank dollars would be released which could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 485 serve as the basis for a multiple expansion limit the demands of the Government on the of bank credit. In such circumstances, if the real resources of the economy and to enable System’s anti-inflation policy was not to be the Congress and the administration to seriously eroded, this release of high- establish priorities among Federal programs, powered dollars would have to be offset so that the maximum benefit is derived from through other System actions. the total outlays of the Government. If the offsetting System actions could be If this exclusion from the budget is to made without too much lag, the total volume have any effect, it will be to allow Exportof bank credit expansion allowed by Federal Import Bank outlays to exceed those that it Reserve policy would be no larger, but the would make under present restraints. As a share allocated to foreign lending would be. result, total Federal outlays will rise without Thus, the effect of the selective expansion of being reflected in the budget totals. In addi export financing would be to reduce the tion, exclusion of the Export-Import Bank amount and raise the costs of the credit from the budget would set a precedent that supply remaining to finance such domestic undoubtedly would be invoked by other needs as housing and State and local govern Government agencies seeking the same ment programs. privilege. There are a number of agencies In short, the Title I arrangement would with this potential interest, and it would be at times have the inadvertent result of setting hard to maintain that the Export-Import a higher priority on financing of export loans Bank is the only institution that merits such than on some domestic needs which might treatment. generally be regarded as socially more press ing. This is one of the difficulties of attempt PROMOTION OF EXPORTS ing to introduce a program of selective credit The Board’s reservations about the desir allocation within a framework of general ability of enacting Title I of H.R. 8181 monetary control. It also illustrates why the should not be interpreted as a lack of interest Board of Governors has consistently opposed in promoting U.S. exports. The Federal the use of its discount facility for selective Reserve is second to no one in its desire to credit allocation purposes. see an improvement in the U.S. balance of payments. Hence we are very much export BUDGETARY STATUS OF EX-IM BANK minded. Turning now to the question of the appro We also fully recognize the importance of priate budgetary status for the Export- providing adequate financing to assist our Import Bank, the Board continues to recom export sales abroad and believe that the mend against proposals that would exclude Export-Import Bank plays a positive role in the Bank’s receipts and disbursements from achieving this goal. For this reason we favor the totals of the Federal budget and exempt the amendments in Title III of H.R. 8181 them from any limitations on annual ex which would increase the loan, guarantee, penditures and net lending imposed through and insurance authority of the Ex-Im Bank the budget. These proposals would make —and, among other things, would permit possible an expansion of Export-Import an expansion of the existing discounting Bank operations by freeing them from facility for medium-term export loans. Of budget restraints imposed on other Federal course, our support of these expanded finan programs. Such restraints are designed to cial activities carries with it the proviso that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
486 FEDERAL RESERVE BULLETIN □ JUNE 1971 they will be fully coordinated by the U.S. program to reduce the deficit in the U.S. Treasury. balance of payments. Finally, we believe that there is an im Each element of the over-all balance of portant part to be played by such new or payments program is aimed at restraining ganizations as the Private Export Funding capital outflow from the United States. The Corporation. The Board, along with other VFCR restrains capital outflow through Federal agencies, has helped in the estab banks and other financial institutions; the lishment of that corporation. And we expect Foreign Direct Investment Program does so it to assume important responsibilities in through regulating outflow from U.S. corpo marshalling financial resources in this coun rations to their affiliates overseas; and the try and abroad to support major U.S. ex interest equalization tax limits outflow re ports. As a private venture operating with sulting from the purchase by Americans of official guarantees and insurance paid for foreign stocks, bonds, and other equity and by users of the credits, PEFCO holds prom debt securities. ise of providing substantial financial re Any appraisal of the VFCR should be sources on competitive terms. made in the context of the over-all pro This completes my testimony, Mr. Chair gram of which it is a part and in the light man. At this point I would like to have of the reliance which the Government con Governor Brimmer testify on the VFCR tinues to place on the other programs to program, if that meets with your wishes. which the VFCR is intimately related. In formulating and administering the VFCR program, all elements of our balance Statement by Andrew F. Brimmer, Mem of payments have been kept in mind. In ber, Board of Governors of the Federal Re particular, careful attention has been given serve System, before the Subcommittee on to the relationship between measures on International Trade, of the House Banking capital transactions and our policy of aiding and Currency Committee, May 19, 1971. in the growth of our exports. The VFCR program constitutes a request by the Federal Reserve System that all finan Mr. Chairman, I appreciate the opportunity cial institutions exercise restraint in lending to present the Federal Reserve Board’s of all types to foreigners and in making any views on Title II of H.R. 8181. This title other investments abroad. The request is would prohibit any restraint under the Vol embodied in a set of guidelines. All U.S. untary Foreign Credit Restraint (VFCR) banks and other U.S. nonbank financial program on export credit granted to for institutions have been invited to volunteer eigners by U.S. banks or other financial their cooperation in observing specific ceil institutions. ings and principles; all U.S. agencies and The Board does not believe that this title branches of foreign banks have been asked of the bill should be enacted. to act in accordance with the spirit of the guidelines. OVERVIEW OF THE VOLUNTARY Mr. Chairman, given the Board’s assign FOREIGN CREDIT RESTRAINT PROGRAM ment in the over-all U.S. Government The Voluntary Foreign Credit Restraint pro balance of payments effort, I would like to gram—the VFCR, as it is generally known note at the outset the unusual nature of —is part of an over-all U.S. Government the approach taken in Title II of H.R. 8181. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 487 It is a proposal for statutory action to change From the earliest days of the VFCR pro a program which calls for a voluntary re gram, the guidelines have requested that, sponse by U.S. private institutions. As I will within their ceilings, institutions give prior indicate below, the Board has always been ity to credits that finance U.S. exports. You ready to change the VFCR when the evi will find that request stated specifically in dence demonstrated that a change was the opening sentence of the guideline text. needed to enhance the program’s contribu Also from the inception of the program, tion to our balance of payments objectives. bank credits in which the Export-Import The Board will continue to review the Bank is involved were exempted from the VFCR guidelines, and it will readily revise guideline ceilings. As the exemption is ex the program as the need arises. pressed in the present guidelines, credits Mr. Chairman, at this point, I will turn which are extended by banks or by nonbank to the proposal. In doing so, I would like, financial institutions and which are guar first, to describe briefly how export credits anteed or participated in by the Eximbank, are now treated under the VFCR guide or insured by Eximbank’s affiliated Foreign lines. I will confine my remarks almost Credit Insurance Association, or guar entirely to the guidelines as they apply to anteed by the Department of Defense are banks—principally because the issue of ex not subject to guideline restraint. The ex port credits and the Title II directive would emption was created in the knowledge that have greater relevance to banks than to the the export financing activities of the Exim nonbank financial institutions. bank and the Department of Defense would be reviewed in the National Advisory Coun TREATMENT OF EXPORT CREDIT cil on International Monetary and Financial UNDER VFCR GUIDELINES Policy in which the Federal Reserve is repre sented. All banks have two sets of ceilings within Export credits have also been exempted which they are to keep their outstanding from several special restraints in the guide loans to foreigners and their investments lines. In particular, banks are not to make abroad: a General Ceiling and an Export any new loans of a maturity of over 1 year Term-Loan Ceiling. The General Ceiling to residents of the developed countries of applies to all categories of foreign assets— continental Western Europe, except for by which is meant all types of loans or other loans which finance U.S. exports. Similarly, credits extended to foreigners and all types banks are to hold their short-term credits to of other foreign investments. The Export such residents to 75 per cent of the end-of- Term-Loan Ceiling applies to loans to for 1967 level, except for credits which finance eigners with an original maturity of over exports. 1 year and which finance the export of U.S. When the guidelines have been revised to goods or the performance of U.S. services increase ceilings or to establish procedures abroad. Within these two ceilings, there are so that banks without ceilings might adopt a few subceilings and other supplementary them—and thereby be able to engage in restraints. For example, one of those supple foreign lending—special effort has been mental restraints, in effect, asks banks not made to earmark the new lending latitude to channel their own funds into short-term for export financing. This has occurred assets abroad merely to obtain a financial many times. return. In the first revision of guidelines at the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
488 FEDERAL RESERVE BULLETIN □ JUNE 1971 end of 1965, a change in the ceiling formula Finally, a general exception in the guide gave some banks an increment in lending lines has significance for export financing. leeway. They were asked to use that latitude That is the exemption of Canada from the exclusively for export credits and credits program. Since early 1968, bank loans and for less developed countries. all other types of credit extended to resi In the spring of 1969, banks were of dents of Canada have been exempted from fered two alternative methods for calculat the guidelines. This exemption was adopted ing their ceilings. The formula was framed for the VFCR and for the other U.S. Gov with the intent, and had the effect, of sig ernment balance of payments programs, nificantly increasing the ceilings of small notably the Foreign Direct Investment Pro and medium-sized banks. The increase in gram, in light of the special relationship the aggregate amounted to almost $0.5 bil between the two economies and in light of lion. This was significant in relation to total safeguards the Canadians imposed to pre ceilings of all banks—which amounted to vent Canada from becoming a “pass about $9 billion. It was even more sig through” for U.S. capital into other parts of nificant for the banks which benefited most the world. This geographic exemption serves directly, since they accounted for only a as an important exemption for export financ minor fraction of the $9 billion of existing ing, since Canada is the most important ceilings. One of the most important reasons single foreign national market for U.S. ex for the increase and for its allocation to ports. the smaller banks was that it would improve IMPACT OF THE VFCR PROGRAM their opportunity to finance exports. ON EXPORT FINANCING In December 1969, each bank was given a second ceiling to be used exclusively for In keeping the administration of the pro loans of over-1-year maturity that financed gram under constant review, the Board has exports. Since that date, every bank has had watched closely for any evidence that the a General Ceiling and an Export Term-Loan savings in capital outflow might be offset Ceiling. The creation of the second ceiling by a loss of exports or even by a shortfall added about $ 1 '4 billion in lending lati in the increase in exports for which we are tude, all for exports, to the approximately striving. $10 billion of aggregate ceilings then in Last year, as we were moving toward existence. the time when decisions would once again In drawing up provisions to guide banks be made about the possible extension and which have had no ceilings but which have revision of the several capital restraint pro proposed to adopt them—and to guide the grams, the Board undertook a separate in Federal Reserve Banks which consult with quiry into the possible effect in 1970 of the them to arrive at specific ceilings—the po VFCR on export financing and on exports. tential concentration on export financing That inquiry went to the heart of the ques has had top attention. The guidelines today tion represented by this bill. The results gave permit new entrants into the foreign lending us information valuable for the decisions field to adopt ceilings up to a certain limit, the Board was to take—and that Congress, but those ceilings—the General and Export by virtue of H.R. 8181, is asked now to Term-Loan Ceiling taken together—are to take. be employed “predominantly” for export With the cooperation of the Department financing. of Commerce, the Board drew up questions Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 489 to be asked of banks and of U.S. exporters handful of cases. Moreover, the VFCR had about efforts made in 1970 to obtain credit virtually no adverse effects on U.S. exports for foreign buyers of U.S. goods. The full re themselves. About a dozen exporters were port, including the content of the questions purportedly denied credit initially because asked, was released by the Board on Janu of the VFCR. However, in almost all cases, ary 7, when the revised guidelines were they found other sources of financing to issued. I will present the highlights and sub complete their sales. (See Table 1.) mit a copy for the hearings record. As a byproduct of the inquiry on pos The key questions asked of banks which sible effects of the VFCR on exports, our accounted for over nine-tenths of loans staff undertook another inquiry to ascertain subject to the guidelines were: (1) had they the portion of total loans under VFCR ceil turned down loans requested on behalf of ings that financed exports. foreign buyers of U.S. exports because of The results of this staff study, released the guidelines and (2) if so, what then March 3, 1971, and which also I submit for happened to the contemplated sale. An the committee’s record, showed how banks effort was then made to question the ex have employed their lending leeway with porters involved. As a further check, in respect to exports. quiries were made of a sample of 100 ex Of loans under VFCR ceilings late last porters across the country to ascertain their year, 17 per cent were documented export experience in getting U.S. bank financing credits. (See Table 2.) Of loans subject to for foreign customers in the light of the ceilings plus loans exempted from ceilings VFCR. because they were Eximbank-related or De The results of the inquiry were striking. partment of Defense-related, 22 per cent It was reported that the VFCR had resulted were to finance exports. The staff paper in the denial of export credit in only a noted many statistical and analytical qualifi TABLE 1 SUMMARY OF BANKS’ AND EXPORTERS’ RESPONSES TO INQUIRY ON THE EFFECTS OF THE VFCR PROGRAM ON EXPORT FINANCING AND ON EXPORTS Number of Number of 2M —40 Number of banks Loans rejected exporters Possible exporters 1 Net loss Federal Export net loss Export of export Reserve sales of sales sales sales district Re Rejecting Value Acknowl completed (thous. of Re Report completed (thous. of spond loan Num (thous. of Identi edging dollars) spond ing dollars) ing because ber dollars) fied rejection ing rejections of VFCR 1 12 1 1 200 1 1 Yes 0 11 1 Yes 0 2 10 0 0 0 0 0 n.a. 0 73 4 Not all 18,000 3 8 0 0 0 0 0 n.a. 0 4 1 No 1,200 4 10 0 0 0 0 0 n.a. 0 4 0 n.a. n.a. 5 7 1 1 Unknown 0 0 Unknown Unknown 6 6 1 3 900 2 0 Yes 0 1 0 n.a. n.a. 7 20 0 0 0 0 0 n.a. 0 12 0 n.a. n.a. 8,9 5 0 0 0 0 0 n.a. 0 6 1 Unknown 10 4 o o 0 0 0 n.a. 0 11 13 2 4 1,450 2 0 Yes 0 9 1 No 2,000 12 14 2 2 2 300 0 0 Unknown 300 9 0 n.a. n.a. Total 3 109 7 11 2,850 5 1 300 129 8 21,200 n.a. Not applicable. ___No response or no figure to be expected. 1 Exporters not identified initially by banks but drawn from separate sample. 2 One bank said it rejected many loans, but that it kept no records. This case is listed here as one rejection. 3 These 109 responses came from 113 commercial banks surveyed. The nonresponding banks all had very few outstanding foreign credits subject to the VFCR. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
490 FEDERAL RESERVE BULLETIN □ JUNE 1971 TABLE 2 EXPORT CREDIT UNDER VFCR CEILINGS AND UNDER EXPORT-IMPORT BANK, FOREIGN CREDIT INSURANCE ASSOCIATION, AND DEPARTMENT OF DEFENSE VFCR EXEMPTIONS In millions of dollars Credit subject to VFCR Exempt Col. (4) credits of Col. (2) Col. (2) as per Group EX-IM, + as per centage Amount FCIA, Col. (3) centage of Cols. out Export Dept, of of Col. (1) (D+(3) standing credit Defense (1) (2) (3) (4) (5) (6) All VFCR banks (167).......... 8,841 All banks in inquiry (72): 8,208 1,374 628 2,002 17 23 17 largest banks1............... 7,235 1,161 543 1,704 16 22 All others (55)................... 973 213 85 298 22 28 By Federal Reserve district: Boston................................ 156 22 14 35 14 21 New York.......................... 4,970 926 397 1,323 19 25 Philadelphia....................... 203 33 11 44 16 21 Cleveland........................... 179 12 21 33 7 17 Richmond.......................... 65 30 1 31 46 47 Atlanta............................... 30 2 12 14 7 33 Chicago.............................. 822 105 84 189 13 21 St. Louis, Minneapolis, and Kansas City............ 46 12 7 19 26 36 Dallas................................. 41 19 2 21 46 49 San Francisco.................... 1,696 213 79 292 13 17 1 Over $100 million in foreign assets. Note.—Sept. 30, 1970, data, except that Aug. 31 data for New York is projected to Sept. 30. cations, and I stress here that the figures As of the end of March, 15 months after do not purport to be comprehensive or pre the Export Term-Loan Ceiling had been cise. But they are based on banks’ records made available, banks had used only 17 per and evaluations. They suggest strongly that cent of it. Even this figure is an inflated banks do have the capacity—within the indicator of its utilization. If we look also ceilings—to finance exports. at the figures showing repayments of term We have also looked at the record of loans for exports that banks had granted utilization of Export Term-Loan Ceilings as before the new ceiling became available and an indicator of the program’s possible effect, compare them with the figures showing new if not on exports, on export financing. You credits of this type placed on their books will recall that these ceilings were created since that time, we find that outstanding at the end of 1969 in the aggregate amount export term loans subject to VFCR ceilings of $114 billion to provide new leeway for have grown by only $67 million. Aggregat export credits of over-1-year maturity—re ing almost $lJ/2 billion today, the Export ferred to as term loans. We realize that, in Term-Loan Ceiling constitutes virtually an the financing of exports, short-term credits unused exemption. are of greater magnitude than term loans. However, we decided to provide additional REASONS FOR NOT EXEMPTING lending leeway for term loans to meet the EXPORT CREDITS FROM VFCR contention that credits of over 1 year were crucial if U.S. exporters were to match the If the VFCR has had little adverse effect on financing terms being offered by exporters exports and if the restraints have not been in foreign countries. substantially holding back export credits, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 491 why should there be Federal Reserve opposi is adequate credit to ensure the growth of tion to the exemption proposed by Title II? U.S. exports. A complete exemption of export credits For these reasons, Mr. Chairman, the from the capital restraint effort would Board does not believe that Title II of H.R. weaken—not improve—the over-all U.S. 8181 should be adopted. balance of payments program. First, exemption would lead to an in crease, possibly to a large increase, in credit Statement by Arthur F. Burns, Chairman, but not to an equivalent increase in exports. Board of Governors of the Federal Reserve Second, exemption would undermine the System, before the Committee on Banking, effectiveness of the whole set of U.S. capital Housing and Urban Affairs, U.S. Senate, June 16, 1971. controls. For example, if export credit were removed from restraint, attention would have to be given to tightening up on other I appreciate your invitation to present the forms of credit to foreigners and other forms views of the Board of Governors on legisla of investments overseas. It is highly ques tion to authorize Government guarantees of tionable that we could successfully intensify loans to business in emergencies. restraints in various credit areas to com The need for prudent provisions to deal pensate for the loss of restraint on export with credit needs in emergency conditions credits. has been newly underscored by develop Finally, there is as much need today— ments over the past year or so. Last spring, perhaps even more need than ever—to re within a few months after I assumed my strain the outflow of funds from the United present duties, financial markets suffered an States. Particularly in the face of our con erosion of confidence severe enough to cause tinuing large balance of payments deficit widespread concern that the country might and of the large short-run capital outflows, face a liquidity crisis—a situation in which we should take the greatest care to avoid even creditworthy firms might be unable to weakening the stand we have taken, in the borrow the funds they needed to carry on common interest, to moderate the flow of their business. U.S. capital into foreign markets. Any The sharpest contraction of credit came relaxation of our capital controls could jeo in the commercial paper market, following pardize the international monetary coopera the insolvency of the Penn Central Trans tion which we have been helping to build. portation Company, a prominent borrower There is today no shortage of capital to in that market. Since commercial paper is finance foreign purchase of U.S. goods. The wholly unsecured, investors backed away Board at no point has denied that the from issuers about which there was any ques restraints may limit the opportunities of tion. Concern spread throughout the credit an individual bank to provide export financ markets, fed by fears that some borrowers ing. But the fact remains that in the banking might be unable to obtain sufficient credit system of this country as a whole, including from alternative sources to refinance matur the network of foreign branches of U.S. ing commercial paper and thus be forced banks that are outside the guidelines, and into bankruptcy. With investors generally in the financing systems available in other becoming more cautious, companies with countries—particularly in those which have credit ratings less than Aaa experienced strong balance of payments surpluses—there increased difficulty in borrowing through Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
492 FEDERAL RESERVE BULLETIN □ JUNE 1971 the bond market, as was evidenced by the In extraordinary circumstances, however, sharp widening of spreads in the structure even a large, well-established, and credit of corporate bond yields. In short, there worthy enterprise may experience difficulty appeared to be a risk of bankruptcies spread in obtaining needed credit, and failure to ing to firms that in other circumstances provide that credit could be extremely costly would be regarded as perfectly sound. to the general public—in terms of jobs de Confronted with an incipient crisis, the stroyed, income lost, financial markets dis Federal Reserve System acted promptly to rupted, or even essential goods not produced. assure the availability of loanable funds to We should be able to find a way to deal with meet the credit needs of firms that were this problem without injuring the free enter being squeezed by the contraction of the prise system. commercial paper market. First, the System In testifying today, it is certainly no part made it clear to member banks that the dis of my purpose to suggest that Congress delay count window would be available to assist its decision about Lockheed. My aim is them in meeting such needs. Second, the rather to recommend that your committee, Board suspended ceilings on the rates of with Lockheed fresh in mind, address itself interest member banks could pay on certifi to the question of devising more general cates of deposit of $100,000 or more. In standards and procedures to govern credit this way banks were placed in a much better guarantees in possible future emergencies. position to attract funds to lend to their The Board believes there are several guid hard-pressed customers. ing principles that should be followed in These two actions helped to restore con designing such assistance. First, assistance fidence, and fear of a liquidity crisis abated. should be offered only to protect the econ omy against serious injury. I have mentioned We can all take comfort from the fact that the mid-1970 experience as just one example the money and credit markets met the tests of conditions under which such a need could of mid-1970 successfully. Looking ahead, arise. Whatever the particuar circumstances, however, we need better assurance that assistance should be reserved for those rare temporary liquidity problems of major cor instances where it is needed to enable a porations will not be allowed to damage the sound enterprise to continue to furnish goods national economy. or services to the public, and where failure Traditionally, this country has relied on to meet that need could have serious conse private financial markets to determine quences for the Nation’s output, employ whether credit should be granted or denied. ment, and finances. I firmly believe that this is a sound principle, Second, since the assistance is designed and I am concerned, as I know you are, to protect the public interest, it follows that about how we can preserve this principle it should not be used simply to protect large and at the same time provide standby au firms from failure, or to bail out bad man thority under which the Government might agement, or to shield creditors or share backstop the private financial markets in holders from the consequences of unwise emergencies. In authorizing Federal credit investments. Guarantees should be a last assistance, the Congress has understandably resort, issued ony when there is reasonable concentrated largely on helping homebuyers, assurance of repayment of the guaranteed small businesses, farmers, and others who loan and when there is no other way to avoid will, in ordinary circumstances, need such serious injury to the economy. Since any assistance far more ^than big businesses do. such guarantee would be subject to condi Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 493 tions assuring a preferential status for the prohibits guarantees of V-loans in amounts Government relative to other creditors or over $20 million without approval of Con shareholders in the event of insolvency, and gress. It also precludes the use of guarantees since guarantees would be available only in of loans under that amount to prevent in emergencies, the existence of the authority solvency except under certain conditions, should not in any real sense erode the dis including a certification by the President, ciplines of the private enterprise system. transmitted to the Congress at least 10 days Rather, it should be regarded as a kind of in advance. While a $20 million limit would insurance policy to protect the general public be impractical for purposes of emergency against a highly specialized risk. assistance, the certification procedure seems Third, assistance should be provided well suited for this purpose. Following that through Federal guarantees of private loans model, a guarantee would be authorized only rather than through outright advances of if the President certifies that it is needed to public funds. Aside from its obvious budget avoid serious and adverse effects on the savings, this approach would have the ad economy and a copy of that certification, vantage of assuring that experienced private with a detailed justification, is sent to the lending officers will administer the loans in Congress and the two banking committees accordance with Federal guidelines and at least 10 days in advance. supervision. These principles are embodied in a bill, Fourth, to assure thorough and well- S. 2016, submitted by the Board and intro balanced consideration of the need for assist duced by your Chairman and Senator ance, responsibility for passing on guarantees Tower. Guarantees outstanding under should be vested in top Federal officials con S. 2016 would be limited to a total of $2 cerned with over-all economic and financial billion. In addition to the conditions I have policy. We suggest that this function be already mentioned, guarantees could be vested in a board chaired by the Secretary issued only if the borrower furnished assur of the Treasury, with the Secretary of Com ances that the loan is not otherwise available merce and the Chairman of the Board on reasonable terms and conditions, if the of Governors as members. No permanent lender certified that he would not make the staff would be required, since guarantees loan without the guarantee, and if the loan would be issued only under exceptional could not be guaranteed under the Defense circumstances, and staff could be assigned Production Act. The bill also provides that as needed from the governmental units fees shall be charged for guarantees and represented on the board. Thus no bureauc deposited in a fund from which payments racy would be created with an interest in required as a consequence of any guarantee expanding the “program.” There would be are to be made. In the event that amounts no “program”—only standby authority, in the fund proved insufficient to make such ready for use in the event of need. payments, the Secretary of the Treasury Fifth, Congress should be informed in would be authorized to obtain the needed advance of any proposed guarantee, so that funds through public debt transactions. it will have an opportunity to review the proposal to the fullest extent consistent with Since the Federal Reserve System acts as the need for prompt action. A possible a lender of last resort to financial institutions, model for such a procedure may be found principally its member banks, we are some in the Defense Production Act as amended times asked whether we could or should per last year. As you will recall, that Act now form the same role for nonfinancial enter Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
494 FEDERAL RESERVE BULLETIN □ JUNE 1971 prises. This question merits at least a brief emergencies, the Board believes that guaran comment. tee authority such as provided in S. 2016 The Federal Reserve Act now includes a would be preferable to direct provision of provision (paragraph 3 of Section 13) that Federal Reserve credit. We make this rec empowers the Board of Governors, in “un ommendation not only because we believe usual and exigent circumstances” and by an assistance should take the form of a guaran affirmative vote of at least five members of tee rather than direct lending, but also the Board, to authorize the Federal Reserve because we believe that the Congress, the Banks to make certain types of direct loans President, and key administration officials to individuals, partnerships, or corporations. should participate in any decision to extend The purpose of this provision of law, such assistance. which was enacted in 1932, was to permit These are the considerations that lead the Federal Reserve Banks to make short-term Board to recommend enactment of S. 2016. loans to enterprises that are creditworthy Whatever your decision may be as to the but are unable to secure adequate credit need for immediate action in the case of accommodations because of unfavorable Lockheed, the Board hopes that you will conditions within the financial system. The give the most serious consideration to a only loans made under this provision were longer-range solution such as S. 2016. Ex granted between 1932 and 1936, totaling perience has convinced the Board that 123 in number and about $1.5 million in legislation of this type is needed as a pro amount. tective umbrella for our sensitive economic Paper discounted by Federal Reserve society. Banks under that paragraph must be of the “kinds and maturities made eligible for dis count for member banks under other pro Statement by Andrew F. Brimmer, Member, visions” of the Federal Reserve Act. This Board of Governors of the Federal Reserve means, among other things, that the paper System, before the Subcommittee on Inter may not have a maturity of more than 90 national Exchange and Payments, of the days at the time of discount. The paragraph Joint Economic Committee, June 16, 1971. further provides that the paper shall be “indorsed or otherwise secured to the satis faction of the Federal Reserve Bank,” which Mr. Chairman and members of the subcom the Board has construed to mean that a mittee, I appreciate this opportunity to re Reserve Bank should ascertain to its satis spond, on behalf of the Federal Reserve faction that the indorsement or the security Board, to the invitation to report on the offered is adequate to protect the Reserve Voluntary Foreign Credit Restraint pro Bank against loss. gram. It has been almost 2 Vi years since I In light of these restrictions in the law last appeared before this subcommittee to and the background as to the intent of the perform the same assignment. law, the Board concluded last year that it The subcommittee asked that I review the would not be appropriate to invoke this positive and negative impacts of the Volun authority to authorize extension of Federal tary Foreign Credit Restraint program—or Reserve credit to Penn Central. Speaking the VFCR as it is generally known—on the more broadly, since legislation is needed in U.S. balance of payments and to discuss any event to assure that adequate authority the need to maintain this program in the is available to cope with possible future light of prospective balance of payments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 495 developments. It also asked for whatever VFCR must take into account these relation information the Board might have on the ships. activities of U.S. commercial banks in mov Each bank and each nonbank financial in ing large amounts of short-term funds inter stitution is asked to keep its loan to for nationally in late April and early May of this eigners and its other investments abroad year. In general, the subcommittee wanted within limits. Each institution, in making to know what role U.S. commercial banks loans and investments under these ceilings, played in the capital flows that apparently is to give priority to credits that finance led German authorities to allow the exchange U.S. exports and that meet the financing rate of the Deutsche mark to float. I will needs of developing countries. deal with these two topics in that order. In addition to observing the over-all ceil ings, the institutions are asked to observe THE VOLUNTARY FOREIGN CREDIT additional restraints on capital outflow to RESTRAINT PROGRAM the developed countries of continental Western Europe and lesser restraints on The Voluntary Foreign Credit Restraint outflows to developing countries. Exemp program is essentially a request that U.S. tions are provided for outflow to Canada and financial institutions restrain their capital for export credit related to Eximbank fi outflow by limiting loans to foreigners and nancing. the acquisition of investments abroad. The Changes have been made in the program VFCR is part of a Government-wide effort from time to time, but its principal features to strengthen the U.S. balance of payments, are today the same as when it was established and it has been in effect since March 1965. in early 1965.1 The central feature of the program is a set of guidelines issued to U.S. banks and nonbank EFFECT OF THE VFCR PROGRAM ON THE financial institutions by the Board of Gov U.S. BALANCE OF PAYMENTS ernors. At the beginning of 1968, the Board received by Executive Order authority to There is a substantial body of statistical and make the program mandatory. However, the other information on which we can draw to banks and other financial institutions have ascertain the possible positive and negative generally responded well to the Board’s re impacts of the VFCR on the balance of pay quest for their cooperation, and the Board ments. However, it must be understood that has chosen to keep the program on a volun it is impossible to do an exacting assessment tary basis. because of data deficiencies and analytical problems. The program is one of the three sets of With these limitations in mind, we can restraints on U.S. capital outflow. The other focus initially on trends in assets subject to two are: the Interest Equalization Tax restraint. On December 31, 1964, the base (IET, applying to purchases by Americans date for calculating the guideline ceilings, of foreign stock, bonds, and other equity and total foreign assets held by banks were al debt securities); and the Foreign Direct most the same as they were on the most Investment Program (regulating funds sup recent reporting date: $9,495 million at plied by U.S. corporations to their overseas the end of 1964 for 154 banks, compared affiliates). I will not discuss the latter two to $9,536 million on April 30, 1971, for programs. But I must stress that the VFCR 169 banks (Table 1, p. 500). As year-end is interrelated with both of these programs, and any assessment of the effects of the 1 For the subcommittee’s information, a fuller description of the program was submitted in an appendix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
496 FEDERAL RESERVE BULLETIN □ JUNE 1971 data show, foreign assets subject to VFCR large change in the banking sector of the ceilings have fluctuated within a narrow U.S. capital account and banks repaid a range throughout the period of the program. large part of their borrowings, but they did The rather stable level of assets subject not increase their claims on foreigners. to the restraints contrasts markedly with the FURTHER IMPACT OF THE VFCR ON rapid increase in bank-reported holdings of CAPITAL FLOWS foreign assets in the years immediately pre ceding the program. In the period 1961-63, One can also get an indirect indication of U.S. bank claims on foreigners rose from the possible effect of the VFCR by tracing $6.9 billion to $9.0 billion, a gain of about the behavior of the banks’ foreign lending $ 1 billion each year. This was a period dur compared to their total lending. Claims on ing which interest rates were comparatively foreigners by U.S. banks would have been low in the United States. In 1964 the level about $16.6 billion at the end of 1970— jumped by another $2.4 billion, partly re instead of $13.8 billion—if they had grown flecting the fact that the IET had just been at the same rate as total domestic loans and imposed but did not yet cover bank lending. investments of reserve city member banks. Once the VFCR was instituted in the early Moreover, the projected end-of-1970 level part of 1965, the rapid rise ceased, and— probably would have been even higher if apart from short-run fluctuations—has not we take account of the relatively greater resumed. emphasis of U.S. banks on foreign markets. The observed trends should not obscure That emphasis has been reflected in part the varying influence of a restrictive U.S. in the rapid establishment of U.S. bank monetary policy on U.S. bank foreign lend branches and subsidiaries overseas. ing. For example, in 1966, aggregate VFCR The VFCR program has been especially ceilings were raised, but monetary policy helpful in restraining bank lending to resi became restrictive. Bank foreign assets de dents of the developed countries of conti clined, and banks at the end of the year had nental Western Europe. Special VFCR large VFCR lending leeway. In 1967 mon restraints apply to these countries: Non etary policy eased, and banks increased their export term loans are not to be made at all, foreign assets. During 1968 the impact of and short-term nonexport credits are to be monetary policy varied greatly. However, at kept to within 75 per cent of their end-ofthe beginning of 1968, there was a tightening 1967 level. Nonexport term loans outstand of the VFCR and the Department of Com ing to these Western European countries merce Foreign Direct Investment Program. when the subsidiary restraint was intro By the end of the year, banks had reduced duced in late 1967 have by now been repaid, their foreign assets more than requested un and no new ones have been granted over the der the VFCR. The reduction was probably past 3 Vi years. Short-term, nonexport attributable both to the restraint program credits to these countries have been sharply and to monetary policy changes. In 1969 restrained by the subceiling at a level of and 1970 there were increases in foreign about one-half billion dollars. assets subject to restraint. The VFCR ceil THE VFCR PROGRAM AND EXPORT ings were increased twice during 1969, but FINANCING a continued restrictive monetary policy and high domestic demand for money in 1969 As members of this subcommittee know, held down the outflow of bank funds. As there has been considerable discussion of monetary policy eased in 1970, there was a the treatment of export credits under the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 497 VFCR bank program. Consequently, it to foreigners and since there are other data might be helpful to focus on the issue at problems. this point. First, the provisions on export However, it appeared that 16 per cent of credits are of a lesser degree of restraint; in banks’ holdings of foreign loans subject to fact, there are virtual exemptions in some the VFCR ceilings are made up of export cases. Second, the possible impact of the credits. The export credit figure is 22 per program on exports, as well as on export cent if we take both export credits subject financing, is an essential element of the to the VFCR ceilings and export credits evaluation of the balance of payments effects that are exempt from the ceilings by reason of the program. of falling within the exemption that applies In the fall of last year, the Board, with to Eximbank-related and Department of the assistance of the Department of Com Defense-related commercial bank credit. merce and the Federal Reserve Banks, con The positions of individual banks vary ducted a survey of commercial banks and of greatly from these averages. In some cases, exporters to determine the possible effects banks have no export credits among their in 1970 of the VFCR on exports and export loans to foreigners; in other cases, the over financing. The survey obtained replies from whelming majority of their foreign assets banks accounting for over nine-tenths of are made up of export credits. bank foreign lending. The replies were For the subcommittee’s information, I checked in every possible case against the submit also a copy of the staff study to which reports of exporters identified by the banks, I have referred. and another sampling was taken of exporters With regard to export credits exempted across the country. The survey indicated that because they are Eximbank-related, a cate there was no significant loss of exports as gory which I have mentioned, there has been a notable growth, particularly over the last the result of the VFCR. In virtually every year or so. instance, U.S. exporters were able to obtain From its earliest days, the program has adequate financing for their shipments—if exempted commercial bank loans to for not through financing from one U.S. bank, eigners that have been paralleled by direct then from another, or from sources abroad. credits of the Eximbank, or that have been I submit a copy of the report of the survey guaranteed by Eximbank, or that have been for the subcommittee’s record. insured by Eximbank’s affiliate—the Foreign Earlier, I noted that all banks, as well Credit Insurance Association (FCIA). as all nonbank financial institutions, were Largely as a result of recent growth in Exim asked, in using their ceilings, to give priority bank activities, commercial bank export to credits that would finance U.S. exports. credits exempted from the VFCR ceilings This priority was established to ensure credit have almost doubled since the end of 1969 where it is essential to make export sales. and now amount to $870 million. Inquiries were made late last year of banks Since early 1968, when Canada was ex reporting under the VFCR program, and empted from all U.S. balance of payments the Board’s staff produced a study which programs, there has been a modest increase shows how this request for priority treatment in the outflow of U.S. bank credit to Canada. has been carried out. The study, the staff One factor tending to limit growth is the noted, is necessarily qualified, since there relatively low level, at present, of borrowing are limitations on the ability to separate costs in Canada compared with those in this export credit to foreigners from other credit country. Another is the action taken by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
498 FEDERAL RESERVE BULLETIN □ JUNE 1971 Canadian authorities to prevent Americans standably, following any easing relative to from funneling money through Canada to conditions abroad, U.S. financial institutions other foreign areas. reassert their interest in placing funds The VFCR program has stimulated—and abroad and, conversely, prospective foreign some might say “caused”—an important borrowers are attracted by declines of U.S. expansion of U.S. banking activity abroad, interest rates and an easing of other credit including the creation and expansion of terms and conditions. branches and subsidiaries of U.S. banks. A The program has kept an over-all limit foreign branch, without adverse impact on on capital outflow through these institutions, the U.S. balance of payments and therefore with leeway expanding and contracting as without restraint from the guidelines, can monetary conditions here and abroad have lend abroad with funds obtained abroad. changed. U.S. credit has been restrained Consequently, many banks have established most with regard to foreign countries which or expanded their facilities overseas. This are best able to rely on non-U.S. financial expansion has been concentrated in the resources, principally the developed coun principal financial centers such as London, tries of continental Western Europe. Insti but it has also occurred in some nontradi- tutions have been asked throughout the tional centers—such as Nassau—as well. period to give priority to export credit, and It is hard to estimate the full effect, either export sales have not been lost because of short-run or long-run, of this development the partial inclusion of export credit in the of the U.S. banking system. However, it is program. clear that the ability of banks to meet the Banks have made adjustments compatible needs of their customers for financial assist with the restraint program so that they can ance abroad—without restraint from the continue to service their customers abroad, guidelines—has been substantially ensured. particularly the foreign affiliates of Ameri can corporations. These adjustments have THE VFCR NONBANK PROGRAM taken the form largely of new, or expanded, foreign bank branches and the use by those I will not endeavor in this statement to dis branches of Euro-dollars. cuss the implication for our balance of pay ments of the nonbank portion of the VFCR POSSIBLE OFFSETTING “LEAKAGES” program, since the bulk of the foreign assets held by nonbank financial institutions, being An evaluation of the effectiveness of the Canadian and international institution se VFCR on checking capital outflow must curities, are exempt from the restraints. take account, not only of the direct restrain However, I am submitting information on ing force, but of any negative indirect ef the nonbank portion of the program in the fects. A gain reflected in one balance of appendix to my statement. payments account might be offset—par tially, wholly, or even more than wholly— THE PROGRAM’S CONTRIBUTION TO THE by a cost reflected in another balance of BALANCE OF PAYMENTS payments account. In our judgment, there have been no substantial offsetting losses— From a review of our experience since early 1965, when the VFCR program was estab or “leakages,” as they are sometimes known. lished, we can see that the restraints have The area we have looked at most care been most effective when monetary condi fully has been that of exports. As I have tions in the United States have eased. Under already said, we have carried out extensive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 499 investigations to see whether, and, if so, to eign assets by about $500 million. The re what extent, there was evidence to sub ports showed that only six banks had in stantiate the apprehension and allegation creases of more than $10 million; most that the restraint on export credit has led to banks had little activity, and 16 reduced a loss of exports. We found abundant evi their foreign assets. In addition, these banks dence to the contrary. Responses from banks reported an increase of $70 million in for and exporters showed that the VFCR has eign claims held for account of their cus not caused any significant loss of U.S. ex tomers—which would include collections on ports. exports—and this too was largely accounted Examination of this and other areas in for by a few banks. our international accounts which might re Data on foreign assets of banks derived flect offsets to the direct contributions of the from weekly statistical reports are shown in VFCR to the balance of payments indicates Table 2 (p. 501). These data reflect a sharp that these offsets have not been of significant increase in certain foreign assets in the week size compared to the balance of payments of May 12, the statement week during which savings. the results of transactions undertaken at the height of market activity would appear in ROLE OF U.S. COMMERCIAL BANKS IN RE the reports. The increases were as follows CENT SHORT-TERM CAPITAL FLOWS (millions of dollars): I would now like to turn to the subcom Balances with foreign banks 165 mittee’s question regarding the role of U.S. Loans to foreign commercial banks in the international movements of banks 331 short-term funds during the latter part of Foreign commercial and indus April and the first week of May. We have trial loans 201 two sets of information on which we can Loans to foreign governments draw: the first source is reports received and official institutions 41 from banks covered by the VFCR, and the 738 second source is information that can be There were a number of factors which derived from statistical reports submitted led to this unusually large rise in foreign weekly by some banks. assets. Probably most important was the use With respect to the VFCR data, the in by foreign banks and other borrowers of formation regularly collected is available the credit lines that had been established through April (Table 1). To obtain data for with U.S. banks in earlier periods. Drawings May, we have prepared a special tabulation on these credit lines may have represented covering the 49 largest banks under the a hedge by the foreign borrowers against program. These data show that in April exchange rate changes, but since the loans these reporting banks increased their foreign are primarily in dollars they do not represent assets covered by the VFCR by $125 mil foreign exchange activity for the U.S. banks lion, of which $26 million was for export involved. The increase in balances held with term loans. At the end of April, total foreign foreign banks was also unusually large, al assets subject to the VFCR for all banks though it was substantially reversed in the were about as large as they were at the be following week. In this case, banks may ginning of the year. have been acting both on their own account Our special tabulation for May showed and in order to be in a position to meet the that the 49 largest banks increased their for demands of their customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
500 FEDERAL RESERVE BULLETIN □ JUNE 1971 I believe these data help to delineate the all the types of capital flows that enter the role of the banks in the large international balance of payments. capital flows that occurred in late April and CONCLUDING COMMENT early May. However, this is only a limited part of the total flow of capital in that pe I would like to conclude by emphasizing riod. While we cannot measure this flow again the role of the VFCR and the other directly, it was evidently large. This con restraints on capital outflows under present clusion is clearly suggested by changes in circumstances. Over the last few months, reserve assets of major foreign countries. banks have consumed much of the leeway These reserves—as recorded—increased by that they have had under their ceilings, so about $1V4 billion in April and by some that the restraints have pressed increasingly $4 billion in May—mainly in the early part on bank outflow of funds. The largest banks, of the month. in particular, are just about at their General Although we have tried to put together the Ceilings. There is every reason to expect data most relevant to your questions, I must that a significant relaxation or a removal of emphasize that it will still be some time be the guideline restraints at this time would fore we have available the full set of sta be followed by a substantial outpouring of tistical reports with which we can measure funds from the United States. □ TABLE 1 FOREIGN ASSETS OF U.S. BANKS SUBJECT TO VFCR CEILINGS Dollar amounts in millions End of year End of month, 1971 Item 1964 1965 1966 1967 1968 1969 1970r Jan.r Feb.r Mar.r Apr. Number of reporting banks............. 154 161 148 151 161 169 171 165 165 169 169 General Ceiling:1 Aggregate ceiling........................... ............. 9,973 10,407 11,069 9,729 10,092 9,968 9,947 9,914 9,908 9,905 Assets under ceiling2..................... 9,495 9,652 9,496 9,865 9,253 9,398 9,353 9,069 9,073 9,174 9,262 Change from previous date........... ............. +157 -156 +369 -612 +145 -45 -284 +4 +101 +88 Apparent leeway............................ ............. 321 911 1,204 476 694 615 878 841 734 643 Export Term-Loan Ceiling:3 Aggregate ceiling........................... ............................................................................... 1,264 1,423 1,431 1,425 1 442 1 442 Assets under ceiling4..................... ............................................................................... 16 190 210 218 248 274 Change from previous date........... ................................................................................................ +174 +20 +8 +30 +26 Apparent leeway............................ ............................................................................... 1,248 1,234 1,221 1,206 1,194 1,168 Total General and Export Term- Loan Ceilings: Aggregate ceilings.......................... ............. 9,973 10,407 11,069 9,729 11,356 11,391 11,378 11,339 11,350 11,347 Assets under ceilings..................... 9,495 9,652 9,496 9,865 9,253 9,414 9,543 9,288 9,291 9,422 9,536 Change from previous date........... ............. +157 -156 +369 -612 +161 +129 -255 +3 +131 +114 Apparent leeway............................ ............. 321 911 1,204 476 1,942 1,942 1,849 2,099 1,928 1,811 Total foreign assets held for own account5......................................... 9,719 9,958 9,844 10,202 9,844 10,158 10,614 10,262 10,285 10,509 10,634 Change from previous date.............. ............. +239 -114 +358 -358 +314 +456 -352 +23 +224 +125 1 Prior to December 1969, “Target Ceiling.” 1969, plus foreign assets held for own account but not reported on 2 Total foreign assets reported on Treasury Foreign Exchange Forms B-2 and B-3. Forms B-2 and B-3: minus (1) amounts held for accounts of customers; 3 0.5 per cent of reporting banks’ total assets as of Dec. 31, 1968. (2) loans guaranteed or participated in by the Export-Import Bank, 4 See point (4) of footnote 2. guaranteed by the Department of Defense, or insured by the FCIA; 5 Total foreign assets reported on Treasury Foreign Exchange (3) beginning March 1968, changes after February 29, 1968, in claims Forms B-2 and B-3, plus foreign assets held for own account not on residents of Canada held for own account; and (4) export term reported on those forms, minus amounts held for account of customers. loans (maturity over I year) placed on banks’ books after Nov. 30, Note.—Data are latest available as of June 3,1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 501 TABLE 2 SELECTED FOREIGN ASSETS OF U.S. BANKS REPORTED WEEKLY, MARCH-JUNE 1971 In millions of dollars Item March April May June 10 17 24 31 14 21 28 12 19 26 Loans to foreign commercial banks........................................Amt. 1,504 1,507 1,450 1,395 1,338 1,451 1,474 1,412 1,488 1,384 1,715 1,861 1,866 1,750 ........................................Chg. + 3 -57 -55 -57 + 113 +23 -62 +76 -104 +331 +146 +5 -116 Foreign commercial and industrial loans........................Amt. 2,420 2,462 2,517 2,525 2,549 2,475 2,487 2,464 2,535 2,480 2,681 2,665 2,703 2,826 .........................Chg. +42 +55 +8 +24 -74 +12 -23 +71 -55 +201 -16 +38 + 123 Balances with foreign banks.......Amt. 381 464 476 508 430 531 546 539 585 535 700 563 544 601 ........Chg. +83 +12 +32 -78 + 101 +15 -7 +46 -50 +165 -137 -19 +57 Total.........................................Amt. 4,305 4,433 4,443 4,428 4,317 4,457 4,507 4,415 4,608 4,399 5,096 5,089 5,113 5,177 ........................................Chg. + 128 +10 -15 -111 + 140 +50 -92 +193 -209 +697 -7 +24 +64 Loans to foreign governments and official institutions............Amt. 760 762 757 789 783 770 802 786 805 767 808 800 814 836 ............Chg. +2 -5 +32 -6 -13 +32 -16 +19 -38 +41 -8 + 14 +22 Total.............................................Amt. 5,065 5,195 5,200 5,217 5,100 5,227 5,309 5,201 5,413 5,166 5,904 5,889 5,927 6,013 ............................................Chg. + 130 +5 +17 -117 + 127 +82 -108 +212 -247 +738 -15 +38 +86 Source.—Loans to and balances with foreign banks and loans to (Federal Reserve) commercial and industrial loans series; data for foreign governments and official institutions are Weekly Condition May 26 and June 2 are preliminary. Report data; foreign commercial and industrial loans are from weekly 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 records for the first two meetings held in 1971 were published in the Bulletins for April, pages 320-27, and May, pages 391-98. The record for the meeting held on March 9, 1971, follows: 503 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
504 FEDERAL RESERVE BULLETIN □ JUNE 1971 MEETING HELD ON MARCH 9, 1971 1. Authority to effect transactions in System Account. Revised official estimates indicated that real output of goods and services had declined at an annual rate of 3.9 per cent in the fourth quarter of 1970. It appeared that real GNP would rise substantially in the current quarter, largely as a result of the recovery of produc tion in the automobile industry following settlement in late November of the strike at a major producer. According to preliminary indications industrial production declined slightly in February, following 2 months of advance, as further increases in output of motor vehicles and steel were more than offset by continued reductions in output of business and defense equipment. Employment also declined in February, but because there was an even larger decline in the labor force the unemployment rate edged down to 5.8 from 6.0 per cent in January. Weekly data suggested that retail sales had risen in February at both automobile dealers and other types of stores. Apart from autos, however, it appeared that average retail sales in January and February were little changed from the fourth quarter. In January private housing starts fell sharply— reversing the unusually large increase of the previous month—but they remained at a high level. Recent movements in major price indexes had been diverse. Average wholesale prices rose substantially from mid-January to mid-February, as a result of a marked increase in prices of farm products and foods; prices of industrial commodities rose less than in most other recent months. In January the advance in the consumer price index moderated from the sharp December increase. Mean while, wage rates continued to rise rapidly in most sectors of the economy. Staff projections suggested that growth in real GNP would slow in the second quarter from its current high rate, mainly because the post-strike recovery in the automobile industry would no longer be providing unusual stimulus to consumer and business spending on autos and trucks. In addition, defense outlays were expected to decline. On the other hand, it seemed likely that residential construc tion expenditures and State and local government outlays would con Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 505 tinue to rise at substantial rates, and that the stockpiling of steel in anticipation of a possible strike in that industry in August—which already was making an appreciable contribution to over-all business investment in inventories—would increase in importance. Also, it was expected that some strength would be imparted to consumer spending by payments late in the quarter of an anticipated increase in social security benefits retroactive to the beginning of the year. The U.S. foreign trade surplus narrowed further in January, extending the trend begun in mid-1970. The chief factor in the deterioration was a sharp rise in the total value of imports. The over-all balance of payments in the January-February period con tinued very heavily in deficit on the official settlements basis. On the liquidity basis the deficit was at a rate much larger than in the second half of 1970, reflecting for the most part adverse capital flows stem ming from the wide differentials between short-term interest rates in the United States and abroad. Short-term interest rates in Britain had risen since the beginning of the year, and rates in Germany had fallen less than U.S. rates and Euro-dollar rates. Largely in consequence of interest rate dif ferences, the dollar was at the floor against nearly all major currencies in the exchange markets in February. The Bank of Canada reduced its discount rate by Vx percentage point in mid-February and by a further V2 point, to 5XA per cent, effective February 24. On Febru ary 26, the Export-Import Bank offered an additional %Vi billion of special securities to overseas branches of U.S. banks, for payment March 3. In domestic financial markets short-term interest rates had con tinued to decline in recent weeks. For example, the market rate on 3-month Treasury bills, at 3.32 per cent on the day before this meet ing, was 50 basis points below its level 4 weeks earlier. Discount rates at Federal Reserve Banks were reduced by another quarter of a percentage point, to 43A per cent, effective February 13 (February 19 for the New York Reserve Bank), and commercial banks lowered their prime lending rate again, from 6 to 53A per cent, effective Febru ary 16. Further declines also had been recorded recently in bank offering rates on large-denomination CD’s and in rates on commercial and finance company paper. In contrast, yields on new issues of corporate and municipal bonds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
506 FEDERAL RESERVE BULLETIN □ JUNE 1971 —which also had been declining earlier—turned up in early Febru ary and rose considerably over the course of the following weeks. These yield increases reflected the continuing very heavy calendar of new offerings—particularly of corporate bonds—and apparently also a growing belief among investors that long-term interest rates were at or near their cyclical lows. Yields rose only slightly on long-term Treasury bonds and they moved down on intermediate-term Treasury issues, in part because of sizable purchases of such securities by the Federal Reserve. Interest rates on residential mortgages declined further in Febru ary in secondary markets for federally insured loans, and on February 18 the ceiling rate on such loans was reduced by administrative action from IVi to 7 per cent—the third half-point cut in 3 months. Deposit inflows at nonbank thrift institutions, which had reached extraordinarily high rates in January, continued large in the first half of February. At commercial banks the rate of growth in consumer-type time and savings deposits was exceptionally rapid in February, but the expansion in large-denomination CD’s slowed somewhat further. The volume of business loans outstanding (including loans that had been sold to affiliates) increased substantially, following a moderate rise in January and declines in the four preceding months. Banks again made sizable additions to their holdings of securities. Total bank credit, as measured by the adjusted proxy series— daily-average member bank deposits, adjusted to include funds from nondeposit sources—increased considerably further on the average in February. Sharp increases also were recorded for two key measures of the money stock—Mu defined as private demand deposits plus currency in circulation, and M2, defined as M1 plus commercial bank time deposits other than large-denomination CD’s. For all of these aggregates the growth rates in February exceeded those expected at the time of the preceding meeting of the Committee. For both of the money stock series, however, earlier estimates of the increase in January had been revised downward somewhat, and for M1 the February expansion followed a number of months in which growth had fallen well short of Committee expectations. The strength of the aggregates in February appeared to be related to the step-up in the growth of business loans at banks and, more generally, to the first- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 507 quarter bulge in economic activity in the aftermath of the auto strike. System open market operations had been directed at achieving somewhat easier conditions in the money market shortly after the February 9 Committee meeting, when revised data for late January and tentative estimates for early February suggested that both and M2 were growing less rapidly than desired. Subsequently, however, new data becoming available indicated that these aggre gates were currently expanding at rates at or above those desired, and operations were directed at maintaining prevailing conditions. The Federal funds rate fluctuated rather widely during the period, but most recently it had averaged about 3Vi per cent, compared with the average of about 334 per cent that had prevailed shortly before the February 9 meeting. In recent weeks needs for reserves had been met to an important extent by System purchases of intermediate- and long-term Treasury securities. Staff analysis suggested that, if prevailing money market condi tions were maintained, both Mi and M2 would expand considerably less in March than they had in February, and that over the first quarter as a whole they would grow at annual rates of about 7 and 16 per cent, respectively. The adjusted bank credit proxy was pro jected to continue upward in March at a pace close to that of February, and to increase at about a 12 per cent annual rate over the first quarter. It was noted that, while the outlook for the monetary aggregates in the second quarter was highly uncertain at this juncture, present indications suggested that M1 would grow more rapidly than in the first quarter if money market conditions remained unchanged, and that M2 and the proxy series would grow a little less rapidly. In the Committee’s discussion considerable concern was expressed about the recent sharp increases in corporate and municipal bond yields, and the members agreed that it would be desirable to accommo date renewed declines in long-term interest rates generally. At the same time, there was widespread sentiment to the effect that further sizable declines in short-term interest rates would not serve a useful purpose. Indeed, in light of the expected growth rates in the monetary and credit aggregates and the recent large capital outflows, a number of members thought that some modest increase in short-term rates would be desirable if—as they considered likely—such a development would not be inconsistent with a downdrift in long-term rates. How Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
508 FEDERAL RESERVE BULLETIN □ JUNE 1971 ever, other members believed that any significant rise in short-term rates at this time would risk putting upward pressure on long-term rates. The members also expressed diverse views about the emphasis that should be placed on the behavior of the monetary and credit aggre gates in making open market operating decisions during coming weeks, and about the appropriate rates of growth in the aggregates over the months ahead. In the latter connection, some members expressed concern about the relatively high growth rates projected by the staff for the period through the second quarter on the assump tion of unchanged money market conditions, and especially about the acceleration anticipated in M±. Others, however, stressed the uncertainties attached to the projections for the later months of the period covered and indicated that they were not disturbed by the near-term outlook for the aggregates—particularly in light of the shortfalls in M1 experienced in other recent months. At the conclusion of the discussion the Committee decided that open market operations at present should be directed at maintaining prevailing money market conditions while accommodating any down ward movements in long-term interest rates. A proviso was added calling for modification of money market conditions if during coming weeks the monetary and credit aggregates appeared to be deviating widely from the growth paths consistent with the first-quarter rates of expansion cited above. Specifically, money market rates were to be increased somewhat if the aggregates were rising considerably faster than expected, but in light of recent declines in such rates they were to be shaded down only slightly if growth were markedly below expectations. The Committee also agreed that its objectives for interest rates would be served if, to the extent feasible, needs to supply reserves continued to be met by purchases of longer-term Treasury securities. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services, which declined in the fourth quarter of 1970, is rising in the current quarter primarily because of the resumption of higher automobile production. Although the unem ployment rate has edged down recently, it remains high. Wage rates Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 509 in most sectors are continuing to rise at a rapid pace. Movements in major price measures have been diverse; most recently, the rate of advance moderated for consumer prices and wholesale prices of industrial commodities, but wholesale prices of farm products and foods rose sharply. Bank credit increased considerably further in February, as business loans strengthened substantially and banks again made sizable additions to their holdings of securities. The money stock both narrowly and broadly defined expanded sharply in February. Short-term interest rates and mortgage rates have fallen further in recent weeks but yields on new issues of corporate and municipal bonds have risen considerably, in part as a result of the very heavy calendar of offerings. The over-all balance of pay ments deficit in January and February was exceptionally large. Imports increased more rapidly than exports in January, and capital outflows have been stimulated by widened short-term interest rate differentials. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial condi tions 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, System open market operations until the next meeting of the Committee shall be conducted with a view to maintaining prevailing money market conditions while accommo dating any downward movements in long-term rates; provided that money market conditions shall be modified if it appears that the monetary and credit aggregates are deviating significantly from the growth paths expected. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo, Mitchell, Morris, Robertson, and Sherrill. Votes against this action: None. 2. Amendment to authorization for System foreign currency operations. On recommendation of the Special Manager of the System Open Market Account the Committee amended paragraph 3 of the authorization for System foreign currency operations to authorize the purchase of currencies to be used for the liquidation of System Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
510 FEDERAL RESERVE BULLETIN □ JUNE 1971 swap commitments from the foreign central bank drawn on, at the same exchange rate as that employed in the drawing to be liqui dated. Prior to this amendment, the paragraph had specified that unless otherwise expressly authorized by the Committee all transac tions in foreign currencies undertaken under paragraph 1(A) of the authorization should be at prevailing market rates. As a result of this action, paragraph 3 read as follows: 3. Currencies to be used for liquidation of System swap commit ments may be purchased from the foreign central bank drawn on, at the same exchange rate as that employed in the drawing to be liquidated. Apart from any such purchases at the rate of the drawing, all transactions in foreign currencies undertaken under paragraph 1(A) above shall, unless otherwise expressly authorized by the Committee, be at prevailing market rates and no attempt shall be made to establish rates that appear to be out of line with underlying market forces. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo, Mitchell, Morris, Robertson, and Sherrill. Votes against this action: None. Discussions had been under way recently with certain central banks in the System’s swap network regarding the possibility of using new procedures in connection with the liquidation of System swap drawings in cases in which it was necessary to obtain the foreign currency required for liquidation by purchasing it directly from the central bank drawn on. It had been noted that both parties were exposed to a risk of loss if such transactions could be made only at the rate prevailing in the foreign exchange market at the time of repayment, and that such risks could be avoided if it were understood in advance that the currency could be purchased from the foreign central bank at the same exchange rate as that em ployed in the drawing to be liquidated. The Committee concurred in the judgment of the Special Manager that it would be appropriate to enter into such understandings with foreign central banks at the time a System drawing was made if the foreign bank were agreeable. It was specified that such understandings should not preclude Fed eral Reserve repayment of swap drawings on or before maturity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 511 through purchase of the foreign currency required at market rates in the foreign exchange market or elsewhere. 3. Review of continuing authorizations. This being the first meeting of the Federal Open Market Com mittee following the election of new members from the Federal Reserve Banks to serve for the year beginning March 1, 1971, and their assumption of duties, the Committee followed its customary practice of reviewing all of its continuing authorizations and direc tives. The action taken with respect to the authorization for System foreign currency operations has been described in the preceding portion of the record for this date. Except for the change resulting from that action, the Committee reaffirmed the authorization, and also the foreign currency directive and the continuing authority directive with respect to domestic open market operations, in the form in which they were outstanding at the beginning of the year 1971. Votes for these actions: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo, Mitchell, Morris, Robertson, and Sherrill. Votes against these actions: None. In connection with the review of the continuing authority directive for domestic operations, the Committee took special note of para graph 3, which authorized the Reserve Banks to engage in lending of U.S. Government securities held in the System Open Market Account under such instructions as the Committee might specify from time to time. That paragraph had been added to the directive on October 7, 1969, on the basis of a judgment by the Committee that in the existing circumstances such lending of securities was reasonably necessary to the effective conduct of open market opera tions and to the effectuation of open market policies, and on the understanding that the authorization would be reviewed periodically. At this meeting the Committee concurred in the judgment of the Manager of the System Open Market Account that the lending activity in question remained necessary and, accordingly, that the authorization should remain in effect subject to periodic review. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department Statutes, regulations, interpretations, and decisions INTEREST ON DEPOSITS ment by national banks. The text of the amend ments and interpretation read as follows: By Act approved May 18, 1971 (Public Law 92-15), Congress extended until June 1, 1973, the AMENDMENTS TO REGULATION Y flexible authority of the Board, the Federal Deposit Insurance Corporation, and the Federal Effective June 15, 1971, section 222.4(a), (b), Home Loan Bank Board in regulating the and (c) is amended, and effective July 1, 1971, maximum rates of interest or dividends payable subparagraph (8) is added to section 222.4(a) by insured banks and savings and loan associa and paragraph (e) is added to section 222.4 as tions on deposits or share accounts. Congress set forth below: earlier this year had extended the authority until June 1, 1971, by Joint Resolution approved March SECTION 222.4—NONBANKING 31, 1971 (Public Law 92-8). ACTIVITIES (a) Activities closely related to banking or BANK HOLDING COMPANIES managing or controlling banks. In accordance The Board of Governors has amended section with the procedures set forth in paragraphs (b) 222.4(a), (b), and (c) of Regulation Y, “Bank and (c) of this section, any bank holding com Holding Companies”, effective June 15, 1971, pany may engage, or retain or acquire an interest as the initial implementation of its regulatory in a company that engages, solely in one or more authority with respect to nonbanking activities of of the activities specified below, including such bank holding companies under section 4(c) (8) of incidental activities as are necessary to carry on the Bank Holding Company Act, as amended by the activities so specified. Any bank holding com the 1970 Amendments. An accompanying inter pany that is of the opinion that other activities in pretation was issued by the Board expressing its the circumstances surrounding a particular case views on several questions that arose during the are closely related to banking or managing or course of its consideration of this matter. Sub- controlling banks may file an application in paragraph (8) of section 222.4(a), added effec accordance with the procedures set forth in para tive July 1, 1971, embodies the Board’s deter graph (b)(2). As to such an application, the mination regarding data processing as closely Board will publish in the Federal Register a notice related to banking; a paragraph was added to of opportunity for hearing only if it believes that the interpretation to clarify the Board’s views on there is a reasonable basis for the holding com this matter. + pany’s opinion. The following activities have been The Board has also added section 222.4(e), determined by the Board to be so closely related effective July 1, 1971, with respect to acquisitions to banking or managing or controlling banks as by holding companies under section 4(c) (5) of to be a proper incident thereto: the Act of shares of the kinds eligible for invest- (1) making or acquiring, for its own account or for the account of others, loans and other extensions of credit (including issuing letters of f In connection with these actions, the Board approved Form F.R. Y-4, Application for Prior Approval of an credit and accepting drafts), such as would be Acquisition Pursuant to Section 4(c)(8) of the Bank made, for example, by a mortgage, finance, credit Holding Company Act; Form F.R. Y-4A, Form for card, or factoring company; * Publication of Notice of Proposed Nonbanking Activities to be Engaged in by a Bank Holding Company De Novo; and Form F.R. Y-4B, Form for Publication of Notice of * Operating a savings and loan association is not Proposed Acquisition of Shares by Bank Holding Com regarded by the Board as within the description of this pany of Going Concern Engaged in Nonbanking Activities. activity. Whether to propose expanding activity (2) to Copies of these forms are available at all Federal Reserve include operating that type of financial institution is Banks. under consideration by the Board. 512 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
(2) operating as an industrial bank, Morris furnished its Reserve Bank with a copy of a Plan bank, or industrial loan company, in the notice of the proposal (in substantially the same manner authorized by State law so long as the form as F.R. Y-4A) published within the preced institution does not both accept demand deposits ing 30 days in a newspaper of general circulation and make commercial loans; in the communities to be served, unless the com (3) servicing loans and other extensions of pany is notified to the contrary within that time or credit for any person; unless it is permitted to consummate the transac (4) performing or carrying on any one or tion at an earlier date on the basis of exigent more of the functions or activities that may be circumstances of a particular case. If adverse performed or carried on by a trust company comments of a substantive nature are received (including activities of a fiduciary, agency, or by the Reserve Bank within 30 days after the custodian nature), in the manner authorized by company has so published its proposal,1 or if it State law so long as the institution does not both otherwise appears appropriate in a particular case, accept demand deposits and make commercial the Reserve Bank may inform the company that loans; ** (i) the proposal shall not be consummated until (5) acting as investment or financial adviser, specifically authorized by the Reserve Bank or including (i) serving as the advisory company by the Board or (ii) the proposal should be for a mortgage or a real estate investment trust processed in accordance with the procedures of and (ii) furnishing economic or financial informa subparagraph (2). tion; ** (2) Acquisition of going concern. A bank (6) leasing personal property and equipment, holding company may apply to the Board to or acting as agent, broker, or adviser in leasing acquire or retain the assets of or shares in a com of such property, where at the inception of the pany engaged solely in activities described in initial lease the expectation is that the effect of paragraph (a) by filing an application with its the transaction and reasonably anticipated future Reserve Bank (Form F.R. Y-4). Every such transactions with the same lessee as to the same application shall be accompanied by a copy of property will be to compensate the lessor for not a notice of the proposal (in substantially the same less than the lessor’s full investment in the prop form as F.R. Y-4B) published within the preced erty; ing 30 days in a newspaper of general circulation (7) making equity and debt investments in in the communities to be served. The Board will corporations or projects designed primarily to publish in the Federal Register notice of any such promote community welfare, such as the eco application and will give interested persons an nomic rehabilitation and development of low- opportunity to express their views (including, income areas.*** where appropriate, by means of a hearing) on (8)(i) providing bookkeeping or data process the question whether performance of the activity ing services for the internal operations of the proposed by the holding company can reasonably holding company and its subsidiaries and (ii) be expected to produce benefits to the public, storing and processing other banking, financial, such as greater convenience, increased competi or related economic data, such as performing pay tion, or gains in efficiency, that outweigh possible roll, accounts receivable or payable, or billing adverse effects, such as undue concentration of services. resources, decreased or unfair competition, con (b)(1) De novo entry. A bank holding com flicts of interests, or unsound banking practices. pany may engage de novo (or continue to engage (c) Tie-ins, alterations, relocations, consolida in an activity earlier commenced de novo) tions. Except as otherwise provided in an order directly or indirectly, solely in activities described in a particular case, the following conditions shall in paragraph (a), 45 days after the company has apply with respect to every acquisition con summated or activity engaged in on the authority * * Acting as investment adviser to an open-end in of § 4(c) (8) of the Act: (1) the provision of any vestment company or as a management consultant is not regarded by the Board as within the description of this activity. Whether to propose expanding activity (5) to 1If a Reserve Bank decides that adverse comments are include acting in either or both of those capacities is not of a substantive nature, the person submitting the under consideration by the Board. comments may request review by the Board of that *** Investing in an industrial development corporation decision in accordance with the provisions of § 265.3 of is not regarded by the Board as within the description of the Board’s Rules Regarding Delegation of Authority this activity. Whether to propose adding that and other (12 CFR 265.3) by filing a petition for review with the activities to the list is under consideration. Secretary of the Board. 513 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
514 FEDERAL RESERVE BULLETIN □ JUNE 1971 credit, property or services involved shall not be closely related to banking are described in gen subject to any condition which, if imposed by a eral terms that will require interpretation from bank, would constitute an unlawful tie-in arrange time to time. The Board’s views on some ques ment under section 106 of the Bank Holding tions that have arisen are set forth below. Company Act Amendments of 1970; (2) the Subsidiary engaging in activities on basis of activities involved shall not be altered in any more than one exemption. Section 222.4(a) states significant respect from those considered by the that a company whose ownership by a bank hold Board in making the determination, nor provided ing company is authorized on the basis of that at any location other than those described in the section may engage solely in specified activities. notice published with respect to such determina That limitation refers only to activities the au tion, except upon compliance with the procedures thority for which depends on §4(c)(8) of the of paragraph (b) (1); and (3) no merger, or Act. It does not prevent a holding company from acquisition of assets other than in the ordinary establishing one subsidiary to engage, for example, course of business, to which the acquired company in activities specified in § 222.4(a) and also in is a party shall be consummated without prior activities that fall within the scope of § 4(c)(1) Board approval, if thereafter the bank holding (C) of the Act—the “servicing” exemption. company will continue to own, directly or in Activities approved prior to 1970 amendments. directly, more than five per cent of the voting The amendments to § 222.4(a) do not apply to shares of such company or its successor. restrict the activities of a company previously ^ * * sfc Hs approved by the Board on the basis of § 4(c)(8) (e) Activities of companies in which national of the Act. Activities of a company authorized banks may invest. No bank holding company or on the basis of § 4(c)(8) either before the 1970 subsidiary thereof that is not a bank or subsidiary Amendments or pursuant to the amended of a bank may, after June 30, 1971, acquire shares § 222.4(a) may be shifted in a corporate reorga on the basis of § 4(c)(5) of the Act unless such nization to another company within the holding shares are of the kinds and amounts explicitly company system without complying with the eligible by Federal statute for investment by a procedures of § 222.4(b), as long as all the national bank. A national bank or a subsidiary activities of such company are permissible under thereof may acquire or retain shares on the basis one of the exemptions in § 4 of the Act. of §4(c)(5) in accordance with the rules and Leasing activities. Permissible leasing activities regulations of the Comptroller of the Currency. are limited to transactions where the lease is the So far as Federal law is concerned, a State- functional equivalent of an extension of credit chartered bank or a subsidiary thereof may (1) to the lessee. Accordingly, a company may acquire or retain shares on the basis of § 4(c)(5) engage in leasing under § 222.4(a) if, at the time if such shares are of the kinds and amounts of the acquisition of the property by the lessor, explicitly eligible by Federal statute for investment there is a lease agreement that will yield a by a national bank and (2) acquire or retain all return from (1) rentals, (2) estimated salvage (but, except for directors’ qualifying shares, not value at the end of the minimum useful life less than all of the shares of a company that allowed by the Internal Revenue Service, and engages solely in activities in which the parent (3) estimated tax benefits (investment tax credit bank may engage, at locations at which the bank and tax deferral from accelerated depreciation) may engage in the activity, and subject to the that would result in full recovery of the lessor’s same limitations as if the bank were engaging in acquisition cost. The Board understands that by the activity directly. law some municipal corporations may not enter into a lease for a period in excess of one year. Such an impediment does not disqualify a com INTERPRETATION OF REGULATION Y pany authorized under § 222.4(a) from entering ACTIVITIES CLOSELY RELATED TO into a lease with the municipality if the company BANKING reasonably anticipates that the municipality will Effective June 15, 1971, the Board of Gover renew the lease annually until such time as the nors has amended § 222.4(a) of Regulation Y to company is fully compensated for its investment implement its regulatory authority under § 4(c) in the leased property. A company authorized (8) of the Bank Holding Company Act. In some under § 222.4(a) may also engage in so-called respects activities determined by the Board to be “bridge” lease financing where the lease is short Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 515 term pending completion of long-term financing, RULES REGARDING by the same or another lender. DELEGATION OF AUTHORITY Community projects. The authority of holding In connection with the recent amendments to companies under § 222.4(a) to invest in corpora Regulation Y, the Board of Governors has tions designed to promote the welfare of their amended its Rules Regarding Delegation of Au community is intended to permit holding com thority to delegate to the Reserve Banks (1) panies to fulfill their civic responsibilities. Under authority to determine when to delay, or permit that authority a holding company may invest in expedition of, an acquisition under section 4(c) community development corporations established (12) of the Bank Holding Company Act and pursuant to Federal or State law. It may also section 222.4(d) of Regulation Y, and (2) au participate in other civic projects, such as a thority to permit holding companies to engage municipal parking facility sponsored by a local de novo in activities the Board has determined to civic organization as a means to promote greater be closely related to banking. use by the public of the community’s facilities. The delegation is reflected in subparagraphs It does not, however, authorize investments (for (19), (20), and (21), of section 265.2(f) of the example, ownership of an apartment complex) Board’s Rules Regarding Delegation of Authority. that are entered into to a substantial extent for The text of the amendments is set forth. profit even though to some extent the investment will benefit the community. AMENDMENTS Relocation of activities. Under the procedures Section 265.2(f) is amended by adding subin § 222.4(c), a holding company that wishes to paragraph (19), effective May 21, 1971, and change the location at which it engages in subparagraphs (20) and (21), effective June 15, activities authorized pursuant to § 222.4(a) must 1971, as set forth below: publish notice in a newspaper of general circula tion in the community to be served. The Board SECTION 265.2—SPECIFIC FUNCTIONS does not regard minor changes in location as DELEGATED TO BOARD EMPLOYEES within the coverage of that requirement. A move AND FEDERAL RESERVE BANKS from one site to another within a one mile radius would constitute such a minor change if the new ❖ * * * * site is in the same State. (f) Each Federal Reserve Bank is authorized, Data processing. The authority of holding com as to member banks or other indicated organiza panies under § 222.4(a) to engage in data proc tions headquartered in its district: essing activities is intended to permit holding * :|s * * * companies to process, by means of a computer or (19) Under § 222.4(d) of this Chapter (Regu otherwise, data for others of the kinds banks lation Y), have processed, by one means or another, in con (i) to notify a bank holding company that has ducting their internal operations and accom informed it of a proposed acquisition of a going modating their customers. It is not intended to concern that, because the circumstances surround permit holding companies to engage in automated ing the application indicate that additional infor data processing activities by developing programs mation is required or that the acquisition should either upon their own initiative or upon request, be considered by the Board, the acquisition should unless the data involved are financially oriented. not be consummated until specifically authorized The Board regards as incidental activities neces by the Reserve Bank or by the Board. sary to carry on the permissible activities in this (ii) to permit a bank holding company that area the following: (i) making excess computer has informed it of a proposed acquisition of a time available to anyone so long as the only going concern to make the acquisition before the involvement by the holding company system is expiration of the 45-day period referred to in that furnishing the facility and necessary operating paragraph, because exigent circumstances justify personnel; (ii) selling a byproduct of the develop consummation of the acquisition at an earlier time. ment of a program for a permissible data process (20) Under § 222.4(b)(1) of this Chapter ing activity; and (iii) furnishing any data process (Regulation Y), and subject to § 265.3 if a per ing service upon request of a customer if such son submitting adverse comments that the Reserve data processing service is not otherwise reasonably Bank has decided are not substantive files a peti available in the relevant market area. tion for review by the Board of that decision, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
516 FEDERAL RESERVE BULLETIN □ JUNE 1971 (i) to permit a bank holding company that has Board’s prior approval of the merger of that bank furnished it with a copy of a duly published with Bergen County National Bank of Hacken notice of a proposal to engage de novo in activities sack, Hackensack, New Jersey (“Bergen Bank”), specified in § 222.4(a) (or retain shares in a by means of the purchase of assets and assump company established de novo and engaging in such tion of liabilities of Bergen Bank; as an incident activities) if its evaluation of the considerations to the merger, the present office of Bergen Bank specified in § 4(c)(8) of the Bank Holding Com would become a branch of Commercial Trust. pany Act leads it to conclude that the proposal Notice of the proposed merger, in form approved can reasonably be expected to produce benefits to by the Board, has been published as required by the public. said Act. (ii) to notify a bank holding company that has In accordance with the Act, the Board re furnished it with a duly published notice of the quested reports on the competitive factors involved kind described in clause (i) that the proposal from the Attorney General, the Comptroller of should not be consummated until specifically the Currency, and the Federal Deposit Insurance authorized by the Reserve Bank or by the Board Corporation. The Board has considered all rele or that the proposal should be processed in ac vant material contained in the record in the light cordance with the procedures of § 222.4(b) (2). of the factors set forth in the Act, including the (iii) to permit a bank holding company that effect of the proposal on competition, the finan has furnished it with a duly published notice of cial and managerial resources and prospects of the kind described in clause (i) to consummate the the banks concerned, and the convenience and proposal before the expiration of the 45-day needs of the communities to be served, and finds period referred to in § 222.4(b)(1), because exi that: gent circumstances justify consummation at an Commercial Trust ($175 million deposits) earlier time. operates six offices in Jersey City and five addi (21) Under § 222.4(c) (2) of this Chapter tional offices elsewhere in Hudson County. Dur (Regulation Y) to permit or stay a proposed de ing 1970 Commercial Trust opened three branch novo modification or relocation of activities en offices in Bergen County. The principal area gaged in by a bank holding company on the same served by Commercial Trust is Jersey City and basis as de novo proposals under the preceding the southeastern part of Hudson County from subparagraph (20). which it derives over 90 per cent of its deposits, and wherein it ranks as the second largest of the 12 area banks, controlling approximately 17 per ORDERS UNDER cent of area deposits. (All banking data are as of BANK MERGER ACT June 30, 1970.) COMMERCIAL TRUST COMPANY OF Bergen Bank ($24 million deposits) maintains NEW JERSEY, its sole office, and is the smallest of four banks, JERSEY CITY, NEW JERSEY in the City of Hackensack (Bergen County). Commercial Trust holds 5.5 per cent of the In the matter of the application of Commercial deposits in the combined Hudson-Bergen County Trust Company of New Jersey, Jersey City, New area. Its share of such deposits would increase to Jersey, for approval of acquisition of assets and 6.3 per cent upon consummation of the proposed assumption of liabilities of Bergen County Na merger. Approval of the proposed transaction tional Bank of Hackensack, Hackensack, New would not increase substantially the concentration Jersey. of banking resources in any area. The competitive effect of this proposal would Order Approving Application for Acquisi be confined principally to the City of Hackensack. tion of Assets and Assumption of Liabilities Commercial Trust has recently opened three Under Bank Merger Act offices in Bergen County that are situated 9, 7, There has come before the Board of Gov and 5 miles from Hackensack in areas which ernors, pursuant to the Bank Merger Act (12 serve mainly as a base for those who commute to U.S.C. 1828(c)), an application by Commercial New York City for employment. Neither Bergen Trust Company of New Jersey, Jersey City, New Bank nor Commercial Trust derives any sig Jersey (“Commercial Trust”), a member State nificant portion of its business from the areas bank of the Federal Reserve System, for the served by the other bank, and the banks serve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 517 essentially separate banking markets. Conse TRUST COMPANY OF GEORGIA, quently, there is no substantial existing competi ATLANTA, GEORGIA tion between Commercial Trust and Bergen Bank. In the matter of the application of Trust Com Moreover, it does not appear that significant po pany of Georgia, Atlanta, Georgia, for approval of tential competition would be eliminated by con acquisition of assets and assumption of liabilities summation of this proposal since under the home of Peachtree Bank and Trust Company, Chamoffice protection afforded by State Law Com blee, Georgia. mercial Trust could not be permitted to branch de novo into the City of Hackensack. Bergen Bank is not an aggressive competitor to the three Order on Petition for Reconsideration larger Hackensack banks, and consummation of On February 22, 1971, the Board of Governors this merger could serve to enhance the ability of issued an Order pursuant to the Bank Merger the resulting banking office to compete in the Act (12 U.S.C. 1828(c)), approving an applica area. tion by Trust Company of Georgia, Atlanta, On the basis of the foregoing, the Board con Georgia, for prior approval of the merger of Trust cludes that consummation of the proposal would Company with Peachtree Bank and Trust Com not eliminate significant existing or potential com pany, Chamblee, Georgia, by means of Trust petition. Considerations pertaining to the financial Company’s purchase of assets and assumption of and managerial resources and future prospects liabilities of Peachtree Bank. of the banks are consistent with approval of the In order to permit study of the complex pro application. Although the banking needs of the cedural and substantive issues raised by a petition residents of Hackensack are being adequately by the United States Department of Justice for served at the present time by many banking offices reconsideration of that Order, the Board, on of large organizations, it appears that the pro March 19, 1971, stayed its operation. posed acquisition would replace a conservatively After study of those issues, the Board finds that operated institution with a more aggressive com reconsideration of its Order of February 22, 1971 petitor in the Hackensack area, enlarge present would be appropriate and in the public interest. services offered to Bergen Bank’s customers, and It is hereby ordered, For the reasons set provide another source of specialized services now forth in the accompanying Statement and in the being offered only by the larger Hackensack Board’s Order of February 22, 1971, that the banks. Therefore, convenience and needs con Orders of March 19 and February 22, 1971 be siderations are consistent with and lend some and hereby are vacated, and it is fu rth er or support to approval of the application. It is the dered, That the application be and hereby is Board’s judgment that consummation of the pro approved, provided that the merger so approved posed merger would be in the public interest, and shall not be consummated (a) before the thirtieth that the application should be approved. calendar day following the date of this Order or It is hereby ordered, On the basis of the (b) later than three months after the date of this findings summarized above, that said application Order, unless such period is extended for good be and hereby is approved, provided that the cause by the Board, or by the Federal Reserve merger so approved shall not be consummated Bank of Atlanta pursuant to delegated authority. (a) before the thirtieth calendar day following By order of the Board of Governors, May 20, the date of this Order or (b) later than three 1971. months after the date of this Order, unless such Voting for this action: Chairman Burns and Gov period is extended for good cause by the Board, ernors Mitchell, Daane, Maisel, Brimmer and Sherrill. or by the Federal Reserve Bank of New York Voting against this action (on the merits of the appli pursuant to delegated authority. cation) : Governor Robertson. By order of the Board of Governors, May 13, (Signed) K enneth A. Kenyon, 1971. Deputy Secretary Voting for this action: Chairman Burns and Gov [seal] ernors Robertson, Mitchell, Maisel, and Brimmer. Absent and not voting: Governors Daane and Sher rill. Statement (Signed) Elizabeth L. Carm ichael, On February 22, 1971 the Board of Governors Assistant Secretary. issued an Order pursuant to the Bank Merger [seal] Act (12 U.S.C. 1828(c)), approving an applica Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
518 FEDERAL RESERVE BULLETIN □ JUNE 1971 tion by Trust Company of Georgia, Atlanta, account of the fact that Trust Company was Georgia (“Trust Company”), for prior approval instrumental in organizing Peachtree Bank in of the merger of Trust Company with Peachtree 1960, and that the banks had been closely asso Bank and Trust Company, Chamblee, Georgia ciated since that time. The Department does not (“Peachtree Bank”), by means of Trust Com controvert those findings, but instead argues that, pany’s purchase of assets and assumption of lia in attributing significance to them in assessing the bilities of Peachtree Bank. As an incident to the competitive aspects of the transaction, the Board merger, the two offices of Peachtree Bank would applied an incorrect standard. It states that “the become branches of Trust Company. mere existence of a ‘close relationship’ between On March 2, 1971, the Department of Justice the two merging banks should not serve to release filed with the Board a petition requesting recon the merger from the usual competitive considera sideration of the Board’s Order of February 22, tions applied by the Board (or from the standards 1971. The petition was brought pursuant to of Clayton Act § 7).” It then proposes the fol § 262.3(f)(6) of the Board’s Rules of Procedure, lowing as a test of the relevance of any relation which provides that the Board will not grant any ship between two merging banks: request for reconsideration unless “the request “[W]here a metropolitan bank in reality establishes presents relevant facts that, for good cause shown, a new bank (rather than assisting others in establish were not previously presented to the Board, or ing such a bank), the new bank may be in effect an unless it otherwise appears to the Board that extension or branch of the existing bank. This occurs reconsideration would be appropriate.” Oppor where it, albeit indirectly, organizes, controls, and tunity was afforded Trust Company to reply to finances the new bank. In such circumstances, a sub sequent merger of the ‘affiliated’ bank into the large the allegations of the Department and the Board Atlanta bank is not likely to have competitive sig has given careful consideration to the briefs filed nificance. Absent this situation of original and con on behalf of Trust Company and the Department. tinuing control, however, we believe that the new On March 19, the Board stayed its February 22 ‘affiliated’ bank should be considered an independent Order to study the issues raised. competitive factor and any subsequent acquisition or merger evaluated according to traditional standards.” In its petition, the Department noted that, pursuant to the Bank Merger Act, the Board had At the outset, it should be clear that every bank requested from it a report on the competitive merger before the Board is subject to scrutiny factors involved in the application, but had not under the same standards, that is, whether its been furnished the report within the statutorily effect “in any section of the country may be sub prescribed period because of the illness of certain stantially to lessen competition, or to tend to key personnel and incomplete information con create a monopoly, or . . . in any other manner cerning the apparently unique banking relation would be in restraint of trade.” The existence of a ships existing in the relevant Georgia markets. factual situation, of whatever nature, which indi The Department urged that the Board consider cates that competition between two banks is not certain additional information and arguments substantial and is unlikely to become such does bearing on the relation between Trust Company not result in the application of different standards. and Peachtree Bank, and reconsider the competi However, it may lead to a different conclusion tive effects of the proposal in the light thereof. than would be reached if the same standards were Trust Company has urged that the Board deny applied to a different factual situation. A conclu the Department’s request on the grounds, among sion as to whether a particular proposal may have others, that the Department is not an appropriate the effect of substantially lessening competition party to request reconsideration. Without decid must be based on the facts of the particular case, ing that question, or the question of whether the and the Board is not authorized, much less re petition presents relevant facts which, for good quired, to ignore facts which bear on that con cause shown, were not previously presented, the clusion. A merger of two banks which are not Board finds it appropriate and in the public in significant competitors cannot be regarded as terest to vacate and reconsider its Order of eliminating significant existing competition. And, February 22, 1971 in the light of the issues raised similarly, if future competition is unlikely—even by the Department. though possible—the merger cannot be regarded In its Order approving the application, the as reasonably likely to lessen future competition. Board indicated that its conclusions with respect This does not mean that every proposed merger to the competitive effects of the proposal took before the Board of two related banks receives Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 519 favorable consideration. First of all, considera Moreover, while Trust Company apparently does tion must be given to the question of whether not have the ability to force continuation of the the relationship was anticompetitive in its origins; relationship, the relationship appears to have if so, little weight should be attributed to such been mutually beneficial and there is no reason to relationship, since to do so might encourage expect that either Trust Company or Peachtree evasion of the law. Assuming, however, that the Bank would voluntarily discontinue it if their relationship was not anticompetitive when estab merger were to be prohibited. The latter has lished or fashioned so as to avoid legal restric advised that almost 40 per cent of its IPC demand tions, its impact on competition—present and deposits are in accounts whose size exceeds the future—should be considered realistically in de insurance maximum, and that most of them would termining whether approval of the transaction likely be moved elsewhere if the relationship were would be in the public interest. If the effect of a terminated. relationship is to create and sustain cooperation, Nor do the facts suggest that, if Peachtree Bank and not competition, between the banks, their were to become truly independent of Trust Com merger cannot reasonably be said to eliminate pany, competition would be so much enhanced presently existing competition between them. In that the preservation of the mere possibility of sofar as the future effects of the proposal are such occurrence should be accorded unusual sig concerned, that depends on whether it might nificance. Peachtree Bank, with $15 million de reasonably be anticipated that the existing inhibi posits, has the eighth largest share of deposits in tions on competition might be terminated, so that, DeKalb County (7 per cent) of the 19 banks if the banks were not merged, effective competi operating there. As indicated above, it would tion between the banks would be likely. It may likely be even smaller were its relationship with be that, in a very highly concentrated market, Trust Company to be terminated. It is doubtful elimination of even a relatively remote possibility that, as an independent, it would exert a significant of significant future competition would mean competitive influence on Trust Company or other that approval of the transaction would not be in Atlanta banks. the public interest. But in no case does the Based on these facts, the Board concludes that Board consider it appropriate to regard the elimi consummation of the transaction would not have nation of a remote possibility of future competi a substantially adverse effect on competition in tion as being the equivalent of the elimination of any relevant area. As to other factors required a reasonable probability of such competition.1 to be considered by the Act, the Board incor Reexamination of the facts of the present case, porates its findings and conclusions as set forth including those stressed by the Department, do in its Order of February 22, 1971. not persuade the Board that its original decision On the basis of the record in this case, as sup was incorrect. Trust Company was largely re plemented by the petition and supporting docu sponsible for the founding of Peachtree Bank, ments filed by the Department of Justice and has supplied it with management (which con Applicant’s response thereto, it is the Board’s tinues to participate in Trust Company’s retire judgment that the proposed merger would be in ment and profit-sharing plans), and has accorded the public interest and that the application should it all the assistance and cooperation which this be approved. relationship implies. While it does not control the bank or its policies, the relationship between them is such that they cannot realistically be Dissenting Statement of regarded as significant competitors to each other. Governor Robertson At the time the Board first considered this 1 It should be noted that Trust Company of Georgia, in addition to being a bank, is also a bank holding com application, I voted to approve on the grounds pany. Had it established control over another bank that the facts were such that no significant change sufficiently firm to meet the Justice Department’s pro in banking competition in the relevant area would posed standard, it would probably be regarded as violat ing the Bank Holding Company Act. In such case, the result. However, I am now convinced by the relationship between the two banks, being unlawful, Justice Department position that, since the rela would properly be regarded as less durable than the tionship between Trust Company and Peachtree present relationship, not more so. It should also be stressed that, under recent amendments to the Bank Bank does not constitute actual control, the banks Holding Company Act, the establishment of such control should be treated as independent institutions in by any bank over another requires prior approval of the analyzing the competitive effects of the proposal. Board. 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520 FEDERAL RESERVE BULLETIN □ JUNE 1971 Considering the facts in this context, I would Although DeKalb County was once basically a reverse my prior decision and deny the applica “bedroom” suburb of Atlanta, the population tion, the approval of which will permanently increase has been accompanied by an even larger foreclose the possibility of future competition and growth in the number and size of commercial and constitute a precedent that could lead to additional industrial firms. Banking in Atlanta is dominated anticompetitive mergers in areas where concen by three banking organizations (including Trust tration of banking power is already great. Company). In Fulton County—where Atlanta is Moreover, I believe denial is called for even located—these three organizations control 73 under the method of analysis adopted by the per cent of deposits; in DeKalb County they con majority—which is to consider all facts bearing trol 53 per cent of deposits. Additionally, the on the present and potential ability of the banks three Atlanta banks have relationships with 12 to compete, and to weigh the possibility of dis banks in DeKalb County (including Peachtree), affiliation with the benefits that would result if the which, in the aggregate, control 28 per cent of smaller bank became independent. that county’s deposits. If mergers involving those Admittedly the relationship between the banks 12 banks and their “affiliated” institutions were to is such as to inhibit competition between them; be consummated, the three large Atlanta banks however, the possibility that Peachtree would would control 82 per cent of the DeKalb County become independent is far from remote. The deposits, and 76 per cent of the deposits in the record indicates that Trust Company’s initial offer two-county area. was rejected by Peachtree, that the two banks have In my judgment, these “affiliated” banks repre no common officers and directors, that common sent a source of competition for the three Atlanta stock ownership is minimal, and that the two banks. By approving the present application, the banks have pursued different commercial strate Board has permitted Trust Company to increase gies. Clearly the relationship between the banks its share of DeKalb County deposits from 14 to is not so strong as to preclude the possibility of 20 per cent, and has adopted a policy of remov disaffiliation. ing potential sources of deconcentration for the Peachtree Bank is located in DeKalb County Atlanta area. (pop. 414,000). That county is situated to the For these reasons, I would deny the application east of Atlanta and, as part of the Atlanta SMSA, and preserve the realistic possibility that Peach is one of the fastest growing areas in the country. tree might become independent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 521 ORDERS UNDER SECTION 3 OF THE consummated (a) before the thirtieth calendar BANK HOLDING COMPANY ACT day following the date of this Order or (b) later AMERICAN BANCSHARES, than three months after the date of this Order, INCORPORATED, NORTH MIAMI, FLORIDA unless such period is extended for good cause by the Board, or by the Federal Reserve Bank In the matter of the application of American of Atlanta pursuant to delegated authority. Bancshares, Incorporated, North Miami, Florida, By order of the Board of Governors, May 13, for approval of action to become a bank holding 1971. company through the acquisition of 80 per cent or more of the voting shares of The Second Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Maisel, and Brimmer. National Bank of North Miami, North Miami; Absent and not voting: Governors Daane and Sher Second National Bank of North Miami Beach, rill. North Miami Beach; and The National Bank of St. Petersburg, St. Petersburg, all in Florida. (Signed) Elizabeth L. Carm ichael, A ssistan t Seeretary. Order Approving Action to Become [seal] a Bank Holding Company There has come before the Board of Governors, Statement pursuant to section 3(a)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(1)) American Bancshares, Incorporated, North and section 222.3(a) of Federal Reserve Regula Miami, Florida (“Applicant”), has filed with the tion Y (12 CFR 222.3(a)), an application by Board, pursuant to section 3(a)(1) of the Bank American Bancshares, Incorporated, North Holding Company Act of 1956, an application Miami, Florida, for the Board’s prior approval for approval of action to become a bank holding of action whereby Applicant would become a bank company through the acquisition of 80 per cent holding company through the acquisition of 80 per or more of the voting shares of The Second Na cent or more of the voting shares of each of three tional Bank of North Miami, North Miami banks in Florida: The Second National Bank of (“North Miami Beach”); Second National Bank North Miami, North Miami; Second National of North Miami Beach, North Miami Beach Bank of North Miami Beach, North Miami (“North Miami Beach Bank”); and The National Beach; and The National Bank of St. Petersburg, Bank of St. Petersburg, St. Petersburg (“St. St. Petersburg. Petersburg Bank”), all in Florida. As required by section 3(b) of the Act, the Views and recommendation of supervisory Board gave written notice to the Comptroller authority. As required by section 3(b) of the of the Currency of receipt of the application Act, the Board gave written notice of receipt of and requested his views and recommendation. the application to the Comptroller of the Currency The Acting Comptroller recommended approval and requested his views and recommendation. of the application. The Acting Comptroller recommended approval Notice of receipt of the application was pub of the application. lished in the Federal Register on March 13, 1971 Statutory considerations. Section 3(c) of the (36 Federal Register 4917), which provided an Act provides that the Board shall not approve an opportunity for interested persons to submit com acquisition that would result in a monopoly or ments and views with respect to the proposed would be in furtherance of any combination or transaction. A copy of the application was for conspiracy to monopolize or to attempt to mo warded to the United States Department of nopolize the business of banking in any part Justice for its consideration. The time for filing of the United States. Nor may the Board approve comments and views has expired and all those a proposed acquisition, the effect of which, in received have been considered by the Board. any section of the country, may be substantially It is hereby ordered, for the reasons set to lessen competition, or to tend to create a forth in the Board’s Statement of this date, that monopoly, or which in any other manner would said application be and hereby is approved, pro be in restraint of trade, unless the Board finds that vided that the action so approved shall not be the anticompetitive effects of the proposed trans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
522 FEDERAL RESERVE BULLETIN □ JUNE 1971 action are clearly outweighed in the public interest tion of the proposal. The three banks are operated by the probable effect of the transaction in meeting by the same executive management, and there the convenience and needs of the communities to is an interlocking of directorships. There is no be served. In each case, the Board is required to significant present competition among the three take into consideration the financial and manage proposed subsidiary banks, and due to their rial resources and future prospects of the bank geographical separation, the number of inter holding company and the banks concerned, and vening banks, Florida’s laws prohibiting branch the convenience and needs of the communities to ing, and their common ownership it does not be served. appear that future competition is likely to develop. Competitive effects of the proposed transaction. Consummation of the proposed formation would There are at the present time 19 registered bank effect a reorganization of the three affiliated banks holding companies operating in the State of under corporate control, and it does not appear Florida, which control 52 per cent of the deposits that it would adversely affect any competing held by all commercial banks in the State.1 banks. Through the acquisition of North Miami Bank On the basis of the foregoing, the Board con ($21 million deposits), North Miami Beach Bank cludes that consummation of this proposal would ($3 million deposits), and St. Petersburg Bank not result in a monopoly or be in furtherance of ($28 million deposits), Applicant would become any combination, conspiracy, or attempt to the State’s nineteenth largest holding company, monopolize the business of banking in any part with control of .4 per cent of the total State of the United States, and would not restrain trade, deposits, and State-wide banking concentration substantially lessen competition, or tend to create would not be significantly affected. a monopoly in any part of the country. Two of the proposed subsidiary banks, North Financial and managerial resources and future Miami Bank and North Miami Beach Bank, are prospects. Applicant was organized in November located in the northeast portion of Dade County, 1970 and has not engaged in any business activi approximately seven miles apart, and serve ties. Its financial condition and that of its pro separate areas; whereas the other proposed sub posed subsidiaries are generally satisfactory, the sidiary, St. Petersburg Bank, is located in Pinellas managements of each are considered competent, County, approximately 250 miles from the Miami and the prospects of each are regarded as area. North Miami Bank and North Miami Beach favorable. Bank hold 8 and 10 per cent, respectively, of Considerations relating to the banking factors total deposits in the areas they serve, rank as are consistent with approval of the appplication. the thirty-fifth and sixty-sixth largest of Dade Convenience and needs of the communities in County’s 69 banks, and together control 0.9 per volved. The areas served by the two Miami banks cent of county deposits. St. Petersburg Bank in Dade County and by St. Petersburg Bank in holds 41 per cent of deposits in the area it Pinellas County have experienced substantial serves, which encompasses the southwest portion growth during the last ten years. Whereas these of St. Petersburg, but only 2.4 per cent of communities are well provided with banking Pinellas County deposits, and is the sixteenth services, Applicant’s plans to broaden the range largest of the 34 banks in the county. of services offered at each subsidiary bank would North Miami Bank has been affiliated with enable them to offer customers an additional St. Petersburg Bank since 1966 and has been alternative for these services. Applicant’s planned affiliated with North Miami Beach Bank since it services would include trust services and invest was organized as an affiliate in 1969. Common ment advice, payroll services for commercial and shareholders own 69 per cent of North Miami business accounts, and travel services. Bank, 61 per cent of North Miami Beach Bank, Considerations relating to the convenience and and over 43 per cent of the St. Petersburg Bank, needs of the areas involved are consistent with and the same group would control approximately and lend some weight in favor of approval of 56 per cent of Applicant’s stock upon consumma the application. Summary and conclusion. On the basis of all 1 Banking data are as of June 30, 1970, adjusted to the relevant facts contained in the record, and reflect holding company formations and acquisitions ap proved by the Board through April 30, 1971. in the light of the factors set forth in section 3(c) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 523 of the Act, it is the Board’s judgment that the tion and third largest bank holding company in proposed transaction would be in the public in Missouri, has six subsidiary banks with aggregate terest and that the application should be approved. deposits of $778 million, representing 7.6 per cent of the total commercial bank deposits in the State. (All banking data are as of June 30, 1970, FIRST UNION, INCORPORATED, adjusted to reflect holding company acquisitions ST. LOUIS, MISSOURI and formations approved by the Board through In the matter of the application of First Union, April 30, 1971.) Consummation of the proposal Incorporated, St. Louis, Missouri, for approval of herein would increase Applicant’s share of com the acquisition of 80 per cent or more of the mercial bank deposits in the State to 7.8 per cent, voting shares of The First National Bank of Cape and Applicant would become the State’s second Girardeau, Cape Girardeau, Missouri. largest banking organization and its second largest bank holding company. Bank ($24 million deposits), located in the Order Approving Acquisition of Bank Stock southeast portion of Cape Girardeau County, by Bank Holding Company 125 miles south of St. Louis, is the second largest There has come before the Board of Governors, of the nine banks in the Cape Girardeau banking pursuant to section 3(a)(3) of the Bank Holding market, which is approximated by Cape Girardeau Company Act of 1956 (12 U.S.C. 1842(a)(3)) County and the northern half of Scott County, and section 222.3(a) of Federal Reserve Regula and holds 25.9 per cent of that market’s deposits. tion Y (12 CFR 222.3(a)), an application by It does not appear that Bank occupies a dominant First Union, Incorporated, St. Louis, Missouri position in its market; Bank’s rate of deposit (“Applicant”), a registered bank holding com growth during the last five years has been the pany, for the Board’s prior approval of the slowest of the nine banks in the market. Affilia acquisition of 80 per cent or more of the voting tion with Applicant should improve Bank’s ability shares of The First National Bank of Cape to compete more effectively. Applicant’s subsidiary Girardeau, Cape Girardeau, Missouri (“Bank”). closest to Bank is located 90 miles northwest, and As required by section 3(b) of the Act, the neither it nor any other of Applicant’s subsidiaries Board gave written notice of receipt of the ap compete with Bank to a significant extent. More plication to the Comptroller of the Currency and over, in light of the distances separating Bank requested his views and recommendation. The from Applicant’s subsidiaries and Missouri’s re Comptroller recommended approval of the strictive branching law, the development of such application. competition appears unlikely. Consequently, it Notice of receipt of the application was pub does not appear that existing competition would lished in the Federal Register on March 18, 1971 be eliminated, or significant potential competition (36 Federal Register 5259), providing an op foreclosed, by consummation of Applicant’s pro portunity for interested persons to submit com posal, or that there would be undue adverse effects ments and views with respect to the proposal. on any bank in the area involved. A copy of the application was forwarded to the Based upon the foregoing, the Board concludes United States Department of Justice for its con that consummation of the proposed acquisition sideration. Time for filing comments and views has would not adversely affect competition in any expired and all those received have been con relevant area. The financial and managerial re sidered by the Board. sources and future prospects of Applicant, its The Board has considered the application in the subsidiaries, and Bank are regarded as consistent light of the factors set forth in section 3(c) of with approval of the application. Although the the Act, including the effect of the proposed present banking needs of the Cape Girardeau acquisition on competition, the financial and managerial resources and future prospects of the area appear to be adequately served by the exist Applicant and the banks concerned, and the ing banking institutions, the area is expected to convenience and needs of the communities to be experience continued economic growth. In order served. Upon such consideration, the Board finds to make Bank more responsive to the needs of the that: area, Applicant plans to expand and to improve Applicant, the third largest banking organiza many of Bank’s services, including its lending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
524 FEDERAL RESERVE BULLETIN □ JUNE 1971 program. These considerations relating to the con recommendation. The Commissioner indicated venience and needs of the area lend some weight that he had no objection to approval of the toward approval. It is the Board’s judgment that application. consummation of the proposed acquisition would Notice of receipt of the application was pub be in the public interest, and that the application lished in the Federal Register on March 13, 1971 should be approved. (36 Federal Register 4917), providing an op It is hereby ordered, On the basis of the portunity for interested persons to submit com Board’s 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 con United States Department of Justice for its con summated (a) before the thirtieth calendar day sideration. Time for filing comments and views following the date of this Order or (b) later has expired and all those received have been than three months after the date of this Order, considered by the Board. unless such period shall be extended for good It is hereby ordered, for the reasons set cause by the Board, or by the Federal Reserve forth in the Board’s Statement of this date, that Bank of St. Louis pursuant to delegated authority. said application be and hereby is approved, pro By order of the Board of Governors, May 13, vided that the action so approved shall not be 1971. consummated (a) before the thirtieth calendar day following the date of this Order or (b) later Voting for this action: Chairman Burns and Gov than three months after the date of this Order ernors Robertson, Mitchell, Maisel, and Brimmer. unless such time be extended for good cause by Absent and not voting: Governors Daane and Sher rill. the Board, or by the Federal Reserve Bank of Kansas City pursuant to delegated authority. (Signed) Elizabeth L. Carmichael, By order of the Board of Governors, May 14, Assistant Secretary. 1971. [seal] Voting for this action: Chairman Burns and Gov ernors Daane, Maisel, and Sherrill. Voting against COMMERCE BANCSHARES, INC., this action: Governor Robertson. Absent and not KANSAS CITY, MISSOURI voting: Governors Mitchell and Brimmer. In the matter of the application of Commerce (Signed) Elizabeth L. Carmichael, Bancshares, Inc., Kansas City, Missouri, for ap Assistant Secretary. proval of acquisition of more than 80 per cent of the voting shares of The Willard Bank, Willard, [seal] Missouri. Statement Order Approving Acquisition of Bank Stock Commerce Bancshares, Inc., Kansas City, Mis by Bank Holding Company souri (“Applicant”), a registered bank holding There has come before the Board of Governors, company, has applied to the Board of Governors, pursuant to section 3(a)(3) of the Bank Holding pursuant to section 3(a)(3) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)) Company Act of 1956 (12 U.S.C. 1842(a)(3)), and section 222.3(a) of Federal Reserve Regula for prior approval of the acquisition of more than tion Y (12 CFR 222.3(a)), an application by 80 per cent of the voting shares of The Willard Commerce Bancshares, Inc., Kansas City, Mis Bank, Willard, Missouri (“Bank”). souri, a registered bank holding company, for the Views and recommendations of supervisory Board’s prior approval of the acquisition of more authority. As required by section 3(b) of the Act, than 80 per cent of the voting shares of The notice of receipt of the application was given to Willard Bank, Willard, Missouri. the Commissioner of Finance of the State of As required by section 3(b) of the Act, the Missouri, and his views and recommendation Board gave written notice of receipt of the ap were requested. The Commissioner indicated that plication to the Commissioner of Finance of the he had no objection to approval of the application. State of Missouri, and requested his views and Statutory considerations. Section 3(c) of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 525 Act provides that the Board shall not approve an it is estimated that the 1980 population will be acquisition that would result in a monopoly or close to 6,000. would be in furtherance of any combination or Applicant’s subsidiary located closest to Bank, conspiracy to monopolize or to attempt to mo the Citizens Bank of Springfield, also operates in nopolize the business of banking in any part of Greene County. With 26 per cent of the deposits, the United States. Nor may the Board approve a Citizens Bank is the second largest bank in the proposed acquisition the effect of which, in any county. There is some negligible existing competi section of the country, may be substantially to tion between Bank and Citizens Bank which would lessen competition, or to tend to create a mo be eliminated by the consummation of this pro nopoly, or which in any other manner would be posal. However, the size of Bank and the conserva in restraint of trade, unless the Board finds that tive operating policies of its management appear the anticompetitive effects of the proposed trans to preclude it from being a significant competitor. action are clearly outweighed in the public interest An indication of this is the fact that Bank was by the probable effect of the transaction in meet chartered in 1966 and since then its deposits have ing the convenience and needs of the communities grown slowly, even though the area has experi to be served. In each case the Board is required enced substantial growth. In light of the cir to take into consideration the financial and mana cumstances described above and the facts of gerial resources and future prospects of the bank record, the Board views Applicant’s acquisition holding company and the banks concerned, and of Bank as a somewhat unusual case. the convenience and needs of the communities On the basis of the foregoing, the Board con to be served. cludes that consummation of the proposal would Competitive effect of proposed transaction. The not result in a monopoly or be in furtherance of ten largest banking organizations in Missouri, any combination, conspiracy or attempt to mo seven of which are registered bank holding com nopolize the business of banking in any part of the panies, control approximately 42 per cent of the United States and would not restrain trade, sub commercial bank deposits in the State.1 Applicant, stantially lessen competition, or tend to create the second largest bank holding company and a monopoly in any section of the country. the second largest banking organization in the Financial and managerial resources and future State, controls 17 subsidiary banks with aggregate prospects. The financial condition of Applicant deposits of $792 million, representing 7.8 per is regarded as satisfactory, its management as cent of the deposits held by all commercial banks competent, and its prospects as favorable. The in the State. Upon acquisition of Bank ($1.5 mil same conclusions apply to Applicant’s subsidiaries. lion deposits), Applicant’s position in relation to Bank is in good financial condition and its the State’s other banking organizations and hold prospects are regarded as favorable. The present ing companies would remain unchanged and its management of Bank is regarded as satisfactory; share of deposits in the State would be increased however, affiliation with Applicant should provide only insignificantly. Bank with greater management depth and should Bank, located in Willard, ten miles northwest assist Bank in meeting a management succession of downtown Springfield, serves a 170 square problem. mile area of northwest Greene County. It is the These considerations are consistent with, and smaller of the two banks in its service area and, provide some weight in favor of, approval of the with .5 per cent of the commercial bank deposits application. in the county, is the tenth largest of the 12 Greene Convenience and needs of the communities in County banks. volved. The major banking needs of the residents of Bank’s service area appear to be adequately The city of Willard serves as a bedroom com served at the present time by existing institutions. munity to Springfield, with approximately 90 per Applicant proposes to establish new services cent of the Willard labor force commuting to at Bank, including estate planning and trust ser Springfield. The population of the city has grown vices, and to broaden Bank’s lending policies in from 357 in 1960 to just over 1,000 in 1970, and order to better meet the expanding needs of the rapidly growing Willard area. These additional 1 All banking data are as of June 30, 1970, adjusted to services should facilitate the economic develop reflect bank holding company formations and acquisitions approved by the Board through March 31, 1971. ment of the area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
526 FEDERAL RESERVE BULLETIN □ JUNE 1971 Considerations relating to the convenience and alternative source of banking services for these needs of the communities involved lend weight residents of Willard who commute to Springfield. in support of approval of the application. In light of the large number of commuters, such Summary and conclusion. On the basis of all a prospect is clearly anticompetitive. the relevant facts contained in the record, and In addition to the above anticompetitive effects in the light of the factors set forth in section 3(c) of the proposal, the majority has chosen to ignore of the Act, it is the Board’s judgment that the the adverse effects of Applicant’s proposal on proposed transaction would be in the public in potential competition. While admitting that the terest, and that the application should be ap Willard service area has enjoyed rapid population proved. expansion and that the prospects for future de velopment are good, the majority has failed to Dissenting Statement of recognize that its action today will foreclose the Governor Robertson development of The Willard Bank as an effective competitor in the Greene County banking market. Although the majority has attempted to cushion The Board’s action today appears to authorize the precedential impact of its decision by char bank holding companies to intensify their control acterizing its approval of the application as “a of the banking markets in which they are already somewhat unusual case,” I disagree with such a represented simply by acquiring the smaller banks characterization, and I would deny the applica in those markets. To me, such action is unwar tion. Applicant’s acquisition of The Willard Bank ranted and contrary to the purposes of the Bank is clearly anticompetitive, and since there are no Holding Company Act. offsetting benefits to the communities which The majority finds that the additional services clearly outweigh those anticompetitive effects, the to be provided by The Willard Bank as an affiliate mandate of the Bank Holding Company Act of Commerce lend weight in favor of approval requires denial of the application. of the application. However, the record does Commerce Bancshares, with its seventeen sub not disclose that there is an actual need for such sidiary banks, is already represented in every additional services. Trust services are easily avail major banking market in the State of Missouri. able to the residents of Willard through the nearby The proposal herein represents an overt effort by Springfield banks, and it appears that The Willard Commerce to solidify its position in one of those Bank is fully capable of handling the loan demands markets, Greene County, by acquiring one of its which arise in its service area. Consequently, since competitors, The Willard Bank. That one of there is no showing of benefits to the communities Applicant’s subsidiaries, Citizens Bank of Spring involved which outweigh the anticompetitive ef field, and The Willard Bank are actual competitors fects of the proposal herein, the application should is not in dispute; yet the majority has apparently be denied. determined that the elimination of competition between the two banks is not so significant so as SOUTHWEST BANCSHARES, INC., to require denial of the application. To me, such a HOUSTON, TEXAS determination ignores the commercial realities which are present in this case. In the matter of the application of Southwest Citizens Bank of Springfield and The Willard Bancshares, Inc., Houston, Texas, for approval Bank both operate in the same market. Ninety of acquisition of more than 51 per cent of the per cent of Willard’s work force commutes to voting shares of The First National Bank of Long Springfield for employment. There is substantial view, Longview, Texas. deposit and loan overlap between the two banks. In fact, the amount of loans and deposits which Order Approving Acquisition of Bank Stock Citizens Bank derives from The Willard Bank’s by Bank Holding Company service area greatly exceeds the total loans and total deposits held by The Willard Bank. It is There has come before the Board of Governors, apparent that the effects of the consummation of pursuant to section 3(a)(3) of the Bank Holding Applicant’s proposal will be an elimination of this Company Act of 1956 (12 U.S.C. 1842(a)(3)) meaningful competition between Citizens Bank and section 222.3(a) of Federal Reserve Regula and The Willard Bank and the elimination of an tion Y (12 CFR 222.3(a)), an application by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 527 Southwest Bancshares, Inc., Houston, Texas, a pany, has applied to the Board of Governors, registered bank holding company, for the Board’s pursuant to section 3(a)(3) of the Bank Holding prior approval of the acquisition of more than Company Act of 1956 (12 U.S.C. 1842(a)(3)), 51 per cent of the voting shares of The First for prior approval of the acquisition of more National Bank of Longview, Longview, Texas. than 51 per cent of the voting shares of The First Applicant, through a wholly-owned subsidiary, National Bank of Longview, Longview, Texas presently controls 22.1 per cent of the voting (“Longview Bank”). Applicant, through a whollyshares of The First National Bank of Longview. owned subsidiary, presently controls 22.1 per cent As required by section 3(b) of the Act, the of the voting shares of Longview Bank. Board gave written notice of receipt of the ap Views and recommendation of supervisory plication to the Comptroller of the Currency, and authority. As required by section 3(b) of the Act, requested his views and recommendation. The the Board gave written notice of receipt of the Comptroller recommended approval of the ap application to the Comptroller of the Currency, plication. and requested his views and recommendation. The Notice of receipt of the application was pub Comptroller recommended approval of the ap lished in the Federal Register on February 11, plication. 1971 (36 Federal Register 2882), providing an op Statutory considerations. Section 3(c) of the portunity for interested persons to submit com Act provides that the Board shall not approve an ments and views with respect to the proposed acquisition that would result in a monopoly or transaction. A copy of the application was for would be in furtherance of any combination or warded to the United States Department of Justice conspiracy to monopolize or to attempt to mo for its consideration. Time for filing comments nopolize the business of banking in any part of and views has expired and all those received have the United States. Nor may the Board approve been considered by the Board. a proposed acquisition, the effect of which, in any It is hereby ordered, for the reasons set forth section of the country, may be substantially to in the Board’s Statement of this date, that said lessen competition, or to tend to create a moapplication be and hereby is approved, provided nopoly, or which in any other manner would be that the action so approved shall not be consum in restraint of trade, unless the Board finds that mated (a) before the thirtieth calendar day fol the anticompetitive effects of the proposed trans lowing the date of this Order, or (b) later than action are clearly outweighed in the public interest three months after the date of this Order, unless by the probable effect of the transaction in meeting such time shall be extended for good cause by the convenience and needs of the communities to the Board, or by the Federal Reserve Bank of be served. In each case, the Board is required to Dallas pursuant to delegated authority, and pro take into consideration the financial and mana vided further that (c) Applicant divest itself of gerial resources and future prospects of the bank its interest in voting shares of The Kilgore Na holding company and the banks concerned, and tional Bank, Kilgore, Texas, within two years of the convenience and needs of the communities the date of this Order. to be served. By order of the Board of Governors, May 14, Competitive effects of the proposed transaction. 1971. Applicant controls two banks with aggregate de posits of approximately $602 million, representing Voting for this action: Chairman Burns and Gov ernors Daane, Maisel, and Sherrill. Concurring in 2.6 per cent of the total commercial bank deposits part and dissenting in part: Governor Robertson. in Texas, and is the fifth largest banking organiza Absent and not voting: Governors Mitchell and tion in the State.1 In addition, Applicant controls Brimmer. more than 14 per cent (but less than 25 per cent) (Signed) Elizabeth L. Carmichael, of the voting shares of each of six other Texas Assistant Secretary. banks, including Longview Bank. Longview Bank ($32 million of deposits) [seal] is the second largest of five banks in Longview Statement Southwest Bancshares, Inc., Houston, Texas 1A11 banking data are as of June 30, 1970, and reflect holding company acquisitions approved through Febru (“Applicant”), a registered bank holding com ary 28, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
528 FEDERAL RESERVE BULLETIN □ JUNE 1971 and the second largest of the 15 banks in the proposal could result in a stifling of competition relevant market, which is defined as approximately between Longview Bank and Kilgore Bank. Gregg County and portions of Harrison and Rusk The anticompetitive dangers raised by the pro Counties. Longview Bank controls 13.7 per cent posal could be eliminated if Applicant divested of the deposits in the market. Applicant’s two itself of its interest in Kilgore Bank. The Board’s subsidiaries are located in the Houston area, more Order approving the proposal is conditioned upon than 200 miles from Longview. Because of the such divestiture. On that basis, and after careful distance between Houston and Longview, the consideration of the entire record, the Board number of banks in the intervening area, the pro concludes that consummation of the proposal hibition against branch banking in Texas, and would not substantially lessen competition, tend other relevant considerations, Longview Bank is close significant potential competition. Nor would not regarded as a competitor of either of Ap it result in a monopoly nor be in furtherance of plicant’s subsidiaries, nor is it likely to become any combination, conspiracy, or attempt to mo such in the future. There is no indication in the nopolize the business of banking in any area, and record that the acquisition of Longview Bank by would not substantially lessen competition, tend Applicant would adversely affect other banks in to create a monopoly, nor restrain trade in any the relevant market. section of the country. Applicant, through a wholly-owned subsidiary, Financial and managerial resources and future controls 24.7 per cent of the voting shares of prospects. The financial and managerial resources The Kilgore National Bank, Kilgore, Texas (“Kil and prospects of Applicant, its subsidiaries, and gore Bank”), located approximately 12 miles Longview Bank are regarded as satisfactory. southwest of Longview Bank. Kilgore Bank com Therefore, considerations regarding the banking petes in the same market with Longview Bank factors are consistent with approval of the ap and ranks as the seventh largest bank in the plication. market on the basis of its control of 5.9 per cent Convenience and needs of the communities in of market deposits. volved. There is no indication in the record of Analysis of Applicant’s relationships with Kil significant benefits to residents of the Houston area gore Bank and examination into Applicant’s that would flow from consummation of the pro actual or potential influence over the policies or posal. Affiliation with Applicant would enable management of Kilgore Bank indicate that con Longview Bank to offer larger lending limits summation of the proposal would have anti through loan participations and to initiate, im competitive effects. Applicant is the largest share prove or expand other services, particularly in holder of Kilgore Bank. In addition, Applicant, ternational and trust services. Therefore, con through its wholly-owned subsidiary, is party to siderations regarding the convenience and needs an agreement with other shareholders of Kilgore of the communities involved are consistent with Bank. The shareholders joining in the agreement approval of the application but lend little weight control more than 50 per cent of the voting shares thereto. of Kilgore Bank and have provided in the agree Summary and conclusions. On the basis of all ment for all their shares to be voted as a unit. the relevant facts contained in the record, and Under the terms of the agreement, Applicant has in the light of the factors set forth in section 3(c) the right to be consulted before policy decisions of the Act, it is the Board’s judgment that the of Kilgore Bank are made, the right to be fully proposed transaction would be in the public in informed about all matters concerning the bank, terest and that the application should be approved. the right of unrestricted access to all books and records of the bank, and other significant rights. Statement of Governor Robertson The Board has not made a determination that Concurring in Part and Dissenting in Part Applicant “controls” Kilgore Bank within the meaning of the Bank Holding Company Act of I concur with the other members of the Board 1956, and it considers such a determination un voting on this action that this application war necessary in the circumstances. The position that rants approval provided that Applicant divest it Applicant enjoys with respect to Kilgore Bank self of its interest in Kilgore Bank. However, I do compels the conclusion that consummation of the not agree that Applicant should be given up to two Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 529 years to effect the divestiture as provided in the divestiture prior to consummation of the proposal, Board’s Order. I consider it not significant relative to the serious The Board finds that Applicant’s acquisition and likely adverse effects on competition that of a controlling interest in Longview Bank while could result if we permit Applicant to own it continues to retain a substantial interest in substantial interests in two competing banks for Kilgore Bank would have an adverse effect on two years. competition. In such circumstances, I believe that For the reasons stated above, I would require divestiture should be required as a condition Applicant to divest itself of its interest in Kilgore precedent to consummation of the proposal. Adop Bank prior to consummation of the proposal. tion of a policy of allowing divestiture of a com peting bank within a two-year period (or other BARNETT BANKS OF FLORIDA, INC., extended period of time) indicates a willingness JACKSONVILLE, FLORIDA of the Board to disregard anticompetitive effects of a transaction for a significant period of time. In the matter of the application of Barnett Whenever the Board is considering an appro Banks of Florida, Inc., Jacksonville, Florida, for priate date for divestiture, it must, of course, approval of the acquisition of 80 per cent or more weigh the potential hardship to an Applicant of the voting shares of Hollywood Bank and Trust caused by divestiture at an early date against the Company, Hollywood, Florida. risks of adverse effects on competition. I believe that, in the present case, concern about the com Order Approving Acquisition of Bank Stock petitive factors should prevail. By virtue of an by Bank Holding Company agreement with other shareholders of Kilgore There has come before the Board of Governors Bank, Applicant enjoys unrestricted access to in pursuant to section 3(a)(3) of the Bank Holding side information concerning Kilgore Bank and, Company Act of 1956 (12 U.S.C. 1842(a)(3)) in addition, has the voting power, as member of and section 222.3(a) of Federal Reserve Regula the control group, to take maximum advantage tion Y (12 CFR 222.3(a)), an application by of that information. By gaining control of Long Barnett Banks of Florida, Inc., Jacksonville, view Bank, Applicant would be able to utilize its Florida (“Applicant”), a registered bank holding power in a manner detrimental to competition company, for the Board’s prior approval of the between Kilgore Bank and Longview Bank. The acquisition of 80 per cent or more of the voting effects of such an anticompetitive situation could shares of Hollywood Bank and Trust Company, linger well beyond two years. Hollywood, Florida (“Hollywood Bank”). In my judgment, the anticompetitive considera As required by section 3(b) of the Act, the tions are not outweighed by any other con Board gave written notice of receipt of the ap siderations. In view of our conclusion that plication to the Commissioner of Banking of the considerations regarding the convenience and State of Florida, and requested his views and needs of the communities involved lend little recommendation. The Commissioner recom weight to approval of the application, the Long mended approval of the application. view community will not suffer if this transaction Notice of receipt of the application was pub is not consummated at the earliest possible date. lished in the Federal Register on March 30, 1971 Nor is it likely that Applicant would suffer (36 Federal Register 5877), providing an op significant hardship if we required it to divest portunity for interested persons to submit com itself of its interest in Kilgore Bank prior to ments and views with respect to the proposed consummation of the proposal. The restricted transaction. A copy of the application was for nature of Applicant’s Kilgore Bank stock, en warded to the United States Department of Justice cumbered as it is with the shareholder agreement, for its consideration. The time for filing comments means that only a limited market for the stock and views has expired and all those received have exists now and that the situation would be un been considered by the Board. affected in the next two years. Therefore, I do The Board has considered the application in the not see what the two-year period is intended to light of the factors set forth in section 3(c) of the accomplish. If there is a possible economic loss Act, including the effect of the proposed acquisi that Applicant would suffer by a requirement of tion on competition, the financial and managerial Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
530 FEDERAL RESERVE BULLETIN □ JUNE 1971 resources of the Applicant and the banks con high rate of growth. While it appears that the cerned, and the convenience and needs of the com banking needs of the area are being adequately munities to be served and finds that: served, Applicant proposes to institute more ag Applicant presently controls 25 banks which gressive loan policies, and improve trust and other hold deposits of $639 million, representing 5.2 banking services to more effectively meet the per cent of total deposits held by Florida’s com needs of the community. It is the Board’s judg mercial banks, and is the State’s third largest ment that consummation of the proposed acquisi banking organization. (All banking data are as of tion would be in the public interest and that June 30, 1970 and reflect holding company forma the application should be approved. tions and acquisitions approved by the Board It is hereby ordered, for the reasons set through April 30, 1971.) Applicant’s acquisition forth in the findings summarized above, that said of Hollywood Bank, with deposits of $58.8 mil application be and hereby is approved, provided lion, would increase its share of deposits in the that the action so approved shall not be consum State by a relatively slight amount. mated (a) before the thirtieth calendar day fol Hollywood Bank operates one office, located lowing the date of this Order or (b) later than in the city of Hollywood, Broward County, three months after the date of this Order, unless Florida, and primarily serves the Hollywood such time be extended for good cause by the metropolitan area (southern portion of Broward Board, or by the Federal Reserve Bank of Atlanta County extending southward to the Dade County pursuant to delegated authority. line). It is the third largest of seven banking By order of the Board of Governors, May 18, organizations in the Hollywood area with 17.9 1971. per cent of area deposits, and the sixth largest of 38 banks in the county with 5.5 per cent of Voting for this action: Chairman Burns and Gov total county deposits. [Four bank holding com ernors Robertson, Mitchell, Daane, Brimmer, and panies presently control fifteen of these 38 banks Sherrill. Absent and not voting: Governor Maisel. amounting to 48.9 per cent of the county’s total deposits.] The two largest banking organizations (Signed) Kenneth A. Kenyon, in Hollywood control 21.8 and 19.5 per cent of Deputy Secretary. that area’s deposits respectively. [seal] Applicant’s nearest existing subsidiary to Bank is approximately 155 miles away, and Applicant’s nearest approved subsidiary is located twenty miles VALLEY BANCORPORATION, away in the city of Miami and is separated from APPLETON, WISCONSIN Bank by numerous intervening banks. There is no In the matter of the application of Valley significant competition between Bank and Ap Bancorporation, Appleton, Wisconsin, for ap plicant’s subsidiaries and, based on the facts of proval of acquisition of 80 per cent or more of record, the potential for any meaningful competi the voting shares of Badger State Bank, Denmark, tion between them appears remote. Based on the Wisconsin. foregoing, the Board concludes that consummation of the proposal would not have a significantly Order Approving Acquisition of Bank Stock adverse effect on competition in any relevant area by Bank Holding Company and may have a procompetitive impact in the Hollywood area since Hollywood Bank has not There has come before the Board of Governors, been a particularly aggressive institution. pursuant to section 3(a)(3) of the Bank Holding Considerations relating to financial and mana Company Act of 1956 (12 U.S.C. 1842(a)(3)) gerial resources and prospects as they relate to and section 222.3(a) of Federal Reserve Regula Applicant, its subsidiaries and Bank, are regarded tion Y (12 CFR 222.3(a)), an application by as consistent with approval of the application. Valley Bancorporation, Appleton, Wisconsin Affiliation with Applicant will enable Hollywood (“Applicant”), a registered bank holding com Bank to strengthen its management depth by pany, for the Board’s prior approval of the drawing from Applicant’s pool of management acquisition of 80 per cent or more of the voting resources for successor management. The Holly shares of Badger State Bank, Denmark, Wisconsin wood area continues to experience an extremely (“Bank”). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 531 As required by section 3(b) of the Act, the there be any adverse effects on any bank in the Board gave written notice of receipt of the ap area. plication to the Commissioner of Banking of the There is no evidence that significant banking State of Wisconsin and requested his views and needs of the community are going unserved; how recommendation. The Commissioner offered no ever, affiliation with Applicant would allow Bank objection to approval of the application. to provide additional services such as data pro Notice of receipt of the application was pub cessing and trust services. Considerations relating lished in the Federal Register on April 6, 1971 to the convenience and needs of the communities (36 Federal Register 6543), providing an op to be served are thus consistent with approval. portunity for interested persons to submit com The prospects and financial condition of Bank ments and views with respect to the proposal. A are regarded as satisfactory. Bank’s management copy of the application was forwarded to the is nearing retirement age and affiliation with United States Department of Justice for its con Applicant would facilitate management succession; sideration. Time for filing comments and views this factor lends some weight toward approval. It has expired and all those received have been con is the Board’s judgment that consummation of the sidered by the Board. proposed acquisition would be in the public inter The Board has considered the application in est, and that the application should be approved. the light of the factors set forth in section 3(c) It is hereby ordered, for the reasons set forth of the Act, including the effect of the proposed above, that said application be and hereby is acquisition on competition, the financial and approved, provided that the acquisition so ap managerial resources and future prospects of the proved shall not be consummated (a) before the Applicant and the banks concerned, and the con thirtieth calendar day following the date of this venience and needs of the communities to be Order or (b) later than three months after the served, and finds that: date of this Order, unless such period is extended for good cause by the Board, or by the Federal Applicant, the seventh largest registered bank Reserve Bank of Chicago pursuant to delegated holding company and banking organization in authority. Wisconsin, controls ten banks holding aggregate By order of the Board of Governors, May 20, deposits of $123 million which represent 1.4 per 1971. cent of commercial bank deposits in the State of Wisconsin. (All banking data are as of June 30, Voting for this action: Chairman Burns and Gov 1970, and reflect bank holding company acquisi ernors Robertson, Mitchell, Daane, Maisel, Brimmer, tions approved by the Board to date.) Upon and Sherrill. acquisition of Bank ($7.5 million in deposits), (Signed) K enneth A. Kenyon, Applicant’s control of deposits in the State of Deputy Secretary. Wisconsin would increase to 1.5 per cent. Bank, located in the southeast section of Brown [seal] County, is the eleventh largest of 16 banking or ganizations in the Green Bay SMSA, holding 2.3 FIRST UNION, INCORPORATED, per cent of deposits in that area. Applicant’s ST. LOUIS, MISSOURI closest subsidiary is Reedsville State Bank which In the matter of the application of First Union, is located in Reedsville, Manitowoc County, 22 Incorporated, St. Louis, Missouri, for approval of miles southwest of Denmark. There is no present acquisition of 80 per cent or more of the voting competition between Bank and that bank or any shares of The First National Bank of West Plains, other of Applicant’s subsidiaries. In light of the West Plains, Missouri. low population of the area, and the fact that Wisconsin law prohibits branching into or within Order Approving Acquisition of Bank Stock three miles of communities already having a bank by Bank Holding Company or branch, the possibility of such competition There has come before the Board of Governors, arising in the future appears remote. No existing pursuant to section 3(a)(3) of the Bank Holding competition would be eliminated by consumma Company Act of 1956 (12 U.S.C. 1842(a)(3)) tion of the proposal, nor would significant po and section 222.3(a) of Federal Reserve Regula tential competition be foreclosed. Neither would tion Y (12 CFR 222.3(a)), an application by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
532 FEDERAL RESERVE BULLETIN □ JUNE 1971 First Union, Incorporated, St. Louis, Missouri, a thority. As required by section 3(b) of the Act, registered bank holding company, for the Board’s the Board gave written notice of receipt of the prior approval of the acquisition of 80 per cent or application to the Comptroller of the Currency more of the voting shares of The First National and requested his views and recommendation. The Bank of West Plains, West Plains, Missouri. Comptroller recommended approval of the appli As required by section 3(b) of the Act, the cation. 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 recommended approval of the appli would be in furtherance of any combination or cation. conspiracy to monopolize or to attempt to mo Notice of receipt of the application was pub nopolize the business of banking in any part of the lished in the Federal Register on February 4, 1971 United States. Nor may the Board approve a pro (36 Federal Register 2429), providing an oppor posed acquisition the effect of which, in any sec tunity for interested persons to submit comments tion of the country, may be substantially to lessen and views with respect to the proposal. A copy of competition, or to tend to create a monopoly, or the application was forwarded to the United States which in any other manner would be in restraint of Department of Justice for its consideration. Time trade, unless the Board finds that the anticompeti for filing comments and views has expired and tive effects of the proposed transaction are clearly all those received have been considered by the outweighed in the public interest by the probable Board. effect of the transaction in meeting the convenience It is hereby ordered, for the reasons set forth and needs of the communities to be served. In in the Board’s Statement of this date, that said each case the Board is required to take into con application be and hereby is approved, provided sideration the financial and managerial resources that the action so approved shall not be consum and future prospects of the bank holding company mated (a) before the thirtieth calendar day fol and the banks concerned, and the convenience and lowing the date of this Order or (b) later than needs of the communities to be served. three months after the date of this Order unless Competitive effect of the proposed transaction. such time be extended for good cause by the Applicant is the second largest banking organiza Board, or by the Federal Reserve Bank of St. tion and second largest bank holding company in Louis pursuant to delegated authority. Missouri by virtue of its control of seven banks By order of the Board of Governors, May 20, with aggregate deposits of $802 million, represent 1971. ing 7.8 per cent of the total commercial bank Voting for this action: Chairman Burns and Gov deposits in the State.1 As a result of this proposal, ernors Maisel, Brimmer, and Sherrill. Absent and Applicant’s share of deposits in the State would not voting: Governors Robertson, Mitchell, and be increased to 8.1 per cent; however, Applicant Daane. would still rank second in relation to the State’s (Signed) Kenneth A. Kenyon, other banking organizations and bank holding Deputy Secretary. companies. [seal] West Plains, the county seat of Howell County, is a rural community of about 7,000 located in Statement south-central Missouri, approximately 210 miles southwest of St. Louis. The economy of Howell First Union, Incorporated, St. Louis, Missouri County has experienced only insignificant growth, (“Applicant”), a registered bank holding com and its population has increased only about 7 per pany, has applied to the Board of Governors, cent during the last decade. The same depressed pursuant to section 3(a)(3) of the Bank Holding condition exists in the surrounding six county area, Company Act of 1956 (12 U.S.C. 1842(a)(3)), and the prospects for the entire area are, at best, for prior approval of the acquisition of 80 per only fair. cent or more of the voting shares of The First National Bank of West Plains, West Plains, Mis XA11 banking data are as of June 30, 1970, adjusted to souri (“Bank”). reflect holding company acquisitions and formations ap Views and recommendation of supervisory au proved by the Board to date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 533 Bank ($28 million deposits), the largest of two West Plains, the trade center for the region. More banks in West Plains and the largest of four banks over, the area’s economy appears to require a in Howell County, holds 60.9 per cent of the total larger bank with sufficient resources to assist in the commercial bank deposits in the county. Even development of the area and only Bank is in a though Bank is the largest bank in the county, position to meet this need. In summary, the Board the other Howell County banks appear to be effec does not consider the possible alternatives de tive competitors, especially the other West Plains scribed above to be so clearly preferable from a bank which has new and aggressive management, competitive standpoint or so likely to occur as to and should not be adversely affected by Appli require the denial of a proposal which should cant’s acquisition of Bank. provide immediate benefits to Howell County and Applicant’s subsidiary closest to Bank is located the surrounding area. over 100 miles away. None of Applicant’s sub In light of the above circumstances, the Board sidiaries derives any significant amount of business concludes that the consummation of the proposed from Bank’s service area. Nor does Bank compete transaction would not result in a monopoly, nor in any of those areas served by Applicant’s sub be in furtherance of any combination, conspiracy, sidiaries. Consequently, it does not appear that or attempt to monopolize the business of banking any existing competition would be eliminated by in any part of the United States, and would not the consummation of this proposal. restrain trade, substantially lessen competition or In connection with its review of the application, tend to create a monopoly in any section of the the Board has considered a view expressed by the country. Department of Justice that the effect of the trans Financial and managerial resources and future action on competition would be “significantly prospects. The financial condition and manage adverse.” The principal arguments of the Depart ment of Applicant and its subsidiaries are regarded ment are that the acquisition would entrench as satisfactory, and their prospects appear favor Bank’s dominant position and raise barriers to able. entry, and that alternative methods of entry into The financial condition of Bank is regarded as Howell County are open to Applicant. The De satisfactory. The present management of Bank is partment believes it preferable that Applicant enter considered competent, but Bank lacks manage the area by either establishing a new bank or by ment depth, and affiliation with Applicant should acquiring one of the smaller banks in the county. strengthen the present management and assure The acquisition of a significant competitor by a Bank of competent management succession. large institution does raise, to a limited extent, These considerations are consistent with, and barriers to entry into an area. However, the more lend some weight in favor of, approval of the significant objection raised by the Department application. relates to alternative methods of entry into the Convenience and needs of the communities in area. Based on the facts of record, Applicant’s volved. The major banking needs of the communi entry into Howell County through alternative ties served by Applicant’s present subsidiaries means does not appear to be feasible. would not be affected by consummation of the The population-to-bank ratio in Howell County present proposal. is approximately 5,900 per bank, considerably Although the present banking needs of Howell below the State average of about 7,000 per bank. County appear to be met by the existing banking Additionally, the high level of unemployment and institutions, the introduction of the State’s second the low per capita income are indicative of the largest banking organization, with its full range depressed nature of the area’s economy. The of banking services, could provide some stimulus combination of these factors makes de novo entry to the depressed economy of the area. Specifically, most unattractive. Of course, it is conceivable Applicant intends to assist Bank in expanding and that Applicant could attempt to acquire one of the improving its lending program in the areas of smaller banks in the county. Applicant, however, housing, agriculture, and industrial development. indicates that the other West Plains bank does not Applicant also proposes to establish data pro appear to be available for acquisition because of cessing and trust services. The addition and ex a recent change in ownership, and that Applicant pansion of these services should enhance Bank’s would not attempt to acquire either of the two capabilities in assisting in the development of the Howell County banks, which are not located in area. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
534 FEDERAL RESERVE BULLETIN □ JUNE 1971 These considerations relating to the convenience light of the factors set forth in section 3(c) of and needs of the communities involved lend the Act, including the effect of the proposed strong weight in support of approval of the acquisition on competition, the financial and application. managerial resources and future prospects of the Summary and conclusion. On the basis of all Applicant and the Bank, and the convenience and the relevant facts contained in the record, and in needs of the community to be served, and finds the light of the factors set forth in section 3(c) that: of the Act, it is the Board’s judgment that the Applicant is a Canadian commercial bank with proposed transaction would be in the public in $5 billion in deposits and 769 banking offices terest, and that the application should be approved. located throughout Canada. In the United States, Applicant has agencies in New York City and THE TORONTO-DOMINION BANK, San Francisco and representative offices in Chi TORONTO, ONTARIO, CANADA cago, Los Angeles and Houston. Additionally, it owns a trust company in New York City which In the matter of the application of The Todoes not accept demand deposits. ronto-Dominion Bank, Toronto, Ontario, Canada, Within the immediate area of Bank are head for approval to become a bank holding company offices of three of the five largest banks in Cali through the acquisition of 100 per cent (less di fornia as well as branch offices of the remaining rectors' qualifying shares) of the voting shares of two largest banks. Based on the record before Toronto Dominion Bank of California, San Fran it, the Board concludes that Bank’s entry into this cisco, California, a proposed new bank. area will have no adverse effects on existing or potential competition. Rather, the addition of Order Approving Action to Become a Bank will provide increased banking facilities and Bank Holding Company competition. There has come before the Board of Governors, The financial and managerial resources and pursuant to section 3(a)(1) of the Bank Holding prospects of Applicant and Bank are satisfactory Company Act of 1956 (12 U.S.C. 1842(a)(1)) and consistent with approval of the application. and section 222.3(a) of Federal Reserve Regula Considerations relating to the convenience and tion Y (12 CFR 222.3 (a)), the application of The needs of the community to be served lend some Toronto-Dominion Bank, Toronto, Ontario, weight toward approval, due to the addition to the Canada (“Applicant”), for the Board’s prior ap area of a new bank and another international proval to become a bank holding company through banking link to Canada. the acquisition of 100 per cent (less directors’ It is hereby ordered, for the reasons set qualifying shares) of the voting shares of Toronto forth in the findings summarized above, that said Dominion Bank of California, San Francisco, application be and hereby is approved, provided California (“Bank”), a proposed new bank. that the acquisition so approved shall not be con As required by section 3(b) of the Act, the summated (a) before the thirtieth calendar day Board gave written notice of receipt of the ap following the date of this Order, or (b) later than plication to the California Superintendent of Banks three months after the date of this Order, and and requested his views and recommendation. The provided further that (c) Toronto Dominion Bank Superintendent recommended approval of the ap of California shall be open for business not later plication. than six months after the date of this Order. The Notice of receipt of the application was pub periods described in (b) and (c) hereof may be lished in the Federal Register on March 25, 1971 extended for good cause by the Board or by the (36 Federal Register 5641), providing an oppor Federal Reserve Bank of San Francisco pursuant tunity for interested persons to submit comments to delegated authority. and views with respect to the proposal. A copy of By order of the Board of Governors, May 20, the application was forwarded to the United States 1971. Department of Justice for its consideration. Time Voting for this action: Chairman Burns and Gov for filing comments and views has expired and ernors Robertson, Mitchell, Daane, Maisel, Brimmer, all those received have been considered by the and Sherrill. Board. (Signed) K enneth A. Kenyon, The Board has considered the application in the [seal] Deputy Secretary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 535 NJN BANCORPORATION, competition. Neither does it appear that there TRENTON, NEW JERSEY would be adverse effects on any bank in the area involved. In the matter of the application of NIN Ban The financial and managerial resources and corporation, Trenton, New Jersey, for approval of prospects of Bank are satisfactory, as would be action to become a bank holding company through those of Applicant upon consummation of the pro the acquisition of 100 per cent (less directors' posal, and are consistent with approval. Consum qualifying shares) of the voting shares of New mation of the proposal would have no immediate Jersey National Bank, Trenton, New Jersey. effect on the convenience and needs of the commu nity involved. Considerations under these factors Order Approving Action to Become are consistent with approval. It is the Board’s a Bank Holding Company judgment that the proposed transaction would be There has come before the Board of Governors, in the public interest, and that the application pursuant to section 3(a)(1) of the Bank Holding should be approved. Company Act of 1956 (12 U.S.C. 1842(a)(1)), It is hereby ordered, for the reasons set forth and section 222.3(a) of Federal Reserve Regulation above, that said application be and hereby is Y (12 CFR 222.3(a)), an application by NJN approved, provided that the acquisition so ap Bancorporation, Trenton, New Jersey (“Appli proved shall not be consummated (a) before the cant”), for the Board’s prior approval of action thirtieth calendar day following the date of this whereby Applicant would become a bank holding Order or (b) later than three months after the company through the acquisition of 100 per cent date of this Order, unless such period is extended (less directors’ qualifying shares) of the voting for good cause by the Board, or by the Federal shares of New Jersey National Bank, Trenton, Reserve Bank of Philadelphia pursuant to dele New Jersey (“Bank”). gated authority. As required by section 3(b) of the Act, the By order of the Board of Governors, May 20, Board gave written notice of receipt of the appli 1971. cation to the Comptroller of the Currency and requested his views and recommendation. The Voting for this action: Chairman Burns and Gov Comptroller offered no objection to approval of ernors Robertson, Mitchell, Daane, Maisel, Brimmer, the application. and Sherrill. Notice of receipt of the application was pub lished in the Federal Register on April 17, 1971 (Signed) Kenneth A. Kenyon, (36 Federal Register 7329), providing an oppor Deputy Secretary. tunity for interested persons to submit comments and views with respect to the proposal. A copy [seal] of the application was forwarded to the United States Department of Justice for its consideration. FIRST FLORIDA BANCORPORATION, Time for filing comments and views has expired TAMPA, FLORIDA and all those received have been considered by the Board. In the matter of the application of First Florida The Board has considered the application in Bancorporation, Tampa, Florida, for approval of the light of the factors set forth in section 3(c) of the acquisition of 80 per cent or more of the the Act, including the effect of the proposed acqui voting shares of The State Bank of North Jackson sition on competition, the financial and managerial ville, Jacksonville, Florida, a proposed new bank. resources and future prospects of the Applicant and the banks concerned, and the convenience and Order Approving Acquisition of Bank Stock needs of the communities to be served, and finds by Bank Holding Company that: Applicant is a nonoperating corporation formed There has come before the Board of Governors, for the purpose of acquiring Bank (deposits pursuant to section 3(a)(3) of the Bank Holding $467.1 million). As it has no present operations Company Act of 1956 (12 U.S.C. 1842(a)(3)) or subsidiaries, consummation of the proposal and section 222.3(a) of Federal Reserve Regula would eliminate neither existing nor potential tion Y (12 CFR 222.3(a)), an application by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
536 FEDERAL RESERVE BULLETIN □ JUNE 1971 First Florida Bancorporation, Tampa, Florida control 15 of the 29 banks in the market. These (“Applicant”), a registered bank holding com three companies control 77.6 per cent of market pany, for the Board’s prior approval of the acqui deposits, while Applicant controls only 4.3 per sition of 80 per cent or more of the voting shares cent. In addition to Applicant and these three of The State Bank of North Jacksonville, Jackson companies, the relevant market is comprised of ville, Florida (“Bank”), a proposed new bank. five bank holding companies and banking groups, As required by section 3(b) of the Act, the and four independent banks. Therefore, it appears Board gave written notice of receipt of the ap that the effect of the proposal will be to enable plication to the Florida State Commissioner of Applicant to compete more effectively with the Banking and requested his views and recommenda larger banking organizations in the relevant area. tion. The Commissioner recommended approval Nor does it appear that the opening of Bank by of the application. Applicant would have an undue adverse effect on Notice of receipt of the application was pub any competing bank. The bank nearest to the lished in the Federal Register on April 8, 1971 proposed site of Bank is located 2.1 miles away (36 Federal Register 6774), providing an oppor and is a subsidiary of the largest bank holding tunity for interested persons to submit comments company in the State. The next closest bank is and views with respect to the proposal. A copy located 3.3 miles from the proposed site and is of the application was forwarded to the United a subsidiary of the fourth largest bank holding States Department of Justice for its consideration. company in the State. Time for filing comments and views has expired On the basis of the record before it, the Board and all those received have been considered by the concludes that consummation of the proposed Board. acquisition would not adversely affect competition The Board has considered the application in the in any relevant area. The financial condition, light of the factors set forth in section 3(c) of the management, and prospects of Applicant and its Act, including the effect of the proposed acquisi subsidiary banks are regarded as generally satis tion on competition, the financial and managerial factory. Bank has no operating financial history. resources and future prospects of the Applicant It will open with satisfactory capital, and it will and the banks concerned, and the convenience and be able to draw on Applicant for its management. needs of the communities to be served. Upon Its prospects are satisfactory. The banking factors such consideration, the Board finds that: are consistent with approval. Bank’s location in a major shopping center which presently has no Applicant controls 19 banks with aggregate de banking facilities should provide a convenience posits of approximately $366 million, represent to residents of the area; and the wide range of ing 3.0 per cent of the total commercial bank services that Bank proposes to offer should meet deposits in the State, and is the sixth largest bank the banking needs of the customers. Therefore, ing organization in Florida. (All banking data are considerations relating to the convenience and as of June 30, 1970, and reflect holding company needs of the communities to be served lend some acquisitions approved through April 30, 1971.) weight in support of approval of the application. Since Bank is a proposed new bank, no existing It is the Board’s judgment that consummation of competition would be eliminated nor would con the proposed acquisition would be in the public centration be increased in any relevant area. interest, and the application should be approved. Bank will be located in a growing residential It is hereby ordered, for the reasons set area (est. population: 85,000) north of down forth in the findings summarized above, that said town Jacksonville. Its proposed site is in a large application be and hereby is approved, provided shopping center and across the street from another that the action so approved shall not be consum shopping complex. Applicant presently controls mated (a) before the thirtieth calendar day follow two banks in Jacksonville which are 6 and 12 ing the date of this Order or (b) later than three miles from Bank and across the river. months after the date of this Order, and provided Consummation of the proposal would not give further that (c) The State Bank of North Jackson Applicant a dominant position in the market ville shall be open for business not later than six which is defined as approximating Duval County. months after the date of this Order. The periods Three of the four largest bank holding companies described in (b) and (c) hereof may be extended in the State are headquartered in Jacksonville and for good cause by the Board, or by the Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 537 Reserve Bank of Atlanta pursuant to delegated the light of the factors set forth in section 3(c) authority. of the Act, including the effect of the proposed By order of the Board of Governors, May 21, acquisition on competition, the financial and man 1971. agerial resources and prospects of the Applicant and the banks concerned, and the convenience Voting for this action: Chairman Burns and Gov and needs of the communities to be served and ernors Robertson, Mitchell, Maisel, and Brimmer. finds that: Absent and not voting: Governors Daane and Sher Applicant presently controls 19 banks with rill. aggregate deposits of approximately $366 million, (Signed) Kenneth A. Kenyon, representing 3.0 per cent of all deposits of com Deputy Secretary. mercial banks in Florida. (All banking data are as of June 30, 1970, adjusted to reflect holding [seal] company acquisitions approved by the Board through April 30, 1971.) Upon acquisition of FIRST FLORIDA BANCORPORATION, Peoples Bank ($7 million deposits), Applicant TAMPA, FLORIDA would increase its share of Statewide deposits by only 0.1 percentage points, leaving unchanged In the matter of the application of First Florida its present ranking as the sixth largest banking Bancorporation, Tampa, Florida, for approval of organization in Florida. acquisition of 90 per cent or more of the voting Peoples Bank is the only bank located in shares of Peoples Bank of Crescent City, Crescent Crescent City. Its principal competitors are the City, Florida. two banks in Palatka, 25 miles north of Crescent City, and the three banks in Deland, 30 miles Order Approving Acquisition of Bank Stock south of Crescent City. Four of these five competi by Bank Holding Company tors are subsidiaries of holding companies. On the There has come before the Board of Governors, basis of deposits, Peoples Bank ranks fifth among pursuant to section 3(a)(3) of the Bank Holding the six banking organizations in the market and Company Act of 1956 (12 U.S.C. 1842(a)(3) controls only 7.8 per cent of market deposits. and section 222.3(a) of Federal Reserve Regula It appears that there is no significant existing tion Y (12 CFR 222.3(a)), an application by competition between Peoples Bank and any of First Florida Bancorporation, Tampa, Florida Applicant’s present subsidiary banks, of which the (“Applicant”), a registered bank holding com nearest to Peoples Bank is 50 miles south in pany, for the Board’s prior approval of the ac Sanford. Nor would significant competition be quisition of 90 per cent or more of the voting likely to develop in the future, principally because shares of Peoples Bank of Crescent City, Crescent of the distances involved, the number of banks City, Florida (“Peoples Bank”). located in each of the intervening areas, and the As required by section 3(b) of the Act, the prohibition against branch banking in Florida. The Board gave written notice of receipt of the applica market area of Peoples Bank is largely rural and tion to the Commissioner of Banking for the growing slowly, and there appears to be little State of Florida, and requested his views and likelihood that Applicant would establish a de recommendation. The Commissioner recom novo office there. Thus, it appears that consumma mended approval of the application. tion of this proposal would not eliminate signifi Notice of receipt of the application was pub cant existing competition nor foreclose potential lished in the Federal Register on April 8, 1971 competition. Affiliation with Applicant may en (36 Federal Register 6773), providing an oppor hance the ability of Peoples Bank to compete with tunity for interested persons to submit comments the larger banks in its area. and views with respect to the proposed transac On the basis of the record before it, the Board tion. A copy of the application was forwarded concludes that consummation of the proposed to the United States Department of Justice for its acquisition would not have an adverse effect on consideration. The time for filing comments and competition in any relevant market. The financial views has expired and all those received have been condition, management and prospects of Appli considered by the Board. cant, its subsidiaries, and Peoples Bank are re The Board has considered the application in garded as generally satisfactory. Applicant states Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
538 FEDERAL RESERVE BULLETIN □ JUNE 1971 that the specialized services of its subsidiaries Board gave written notice of receipt of the ap would be made available to customers of Peoples plication to the Missouri Commissioner of Finance Bank as the need arises. Thus, considerations and requested his views and recommendation. The concerning community convenience and needs are Commissioner replied that the acquisition would consistent with approval of the application. It is be a very progressive step for banking in Missouri. the Board’s judgment that the proposed transac Notice of receipt of the application was pub tion would be in the public interest, and that the lished in the Federal Register on April 10, 1971 application should be approved. (36 Federal Register 6923), providing an oppor It is hereby ordered, for the reasons in the tunity for interested persons to submit comments findings summarized above, that said application and views with respect to the proposal. A copy be and hereby is approved, provided that the of the application was forwarded to the United acquisition so approved shall not be consum States Department of Justice for its consideration. mated (a) before the thirtieth calendar day follow Time for filing comments and views has expired ing the date of this Order or (b) later than three and all those received have been considered. 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 Atlanta 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, May 21, managerial resources and future prospects of the 1971. Applicant and the banks concerned, and the con venience and needs of the communities to be Voting for this action: Chairman Burns and Gov served, and finds that: ernors Robertson, Mitchell, Maisel, and Brimmer. Applicant, Missouri’s fifth largest registered Absent and not voting: Governors Daane and Sher rill, bank holding company and banking organization, controls six banks located throughout the State (Signed) K enneth A. Kenyon, with approximately $382 million in total deposits Deputy Secretary. (approximately 3.7 per cent of total deposits in the State). Applicant’s acquisition of Bank ($12.6 [seal] million deposits) would increase its share of total deposits in the State by .1 per cent. (Banking MISSOURI BANCSHARES, INC., data are as of June 30, 1970 and reflect holding KANSAS CITY, MISSOURI company formations and acquisitions approved through April 30, 1971.) Although no subsidiary In the matter of the application of Missouri of Applicant competes in Bank’s primary service Bancshares, Inc., Kansas City, Missouri, for ap area, both Bank and one of Applicant’s subsid proval of acquisition of 83 per cent or more of iaries, The First Security Bank, Kirkwood, Mis the voting shares of The Arnold Savings Bank, souri, compete in the broad St. Louis banking Arnold, Missouri. market (the Missouri portion of the St. Louis SMSA), holding .3 per cent and .5 per cent of Order Approving Acquisition of Bank Stock total deposits in that area, respectively. However, by Bank Holding Company existing competition between Bank and First There has come before the Board of Governors, Security Bank is minimal and substantial poten pursuant to section 3(a)(3) of the Bank Holding tial competition is unlikely due to the 20-mile Company Act of 1956 (12 U.S.C. 1842(a)(3)) distance between the two and the location of five and section 222.3(a) of Federal Reserve Regula banks in the intervening area. Furthermore, Kirk tion Y (12 CFR 222.3(a), an application by wood is a suburban community, and its com Missouri Bancshares, Inc., Kansas City, Missouri muting residents avoid the most direct connecting (“Applicant”), a registered bank holding com route, heavily traveled by local traffic, in favor pany, for the Board’s prior approval of the of the interstate highway which bypasses Bank. acquisition of 83 per cent or more of the voting Based on the facts of record, it appears that no shares of The Arnold Savings Bank, Arnold, existing competition would be eliminated by con Missouri (“Bank”). summation of the proposal, significant potential As required by section 3(b) of the Act, the competition would not be foreclosed, and there Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 539 would not be adverse effects on any competing Regulation Y (12 CFR 222.3(a)), an application bank. by Texas Commerce Bancshares, Inc., Houston, Financial and managerial resources and pros Texas (“Applicant”), for the Board’s prior ap pects of Applicant, its subsidiary banks, and Bank proval of action whereby Applicant would be are satisfactory, in the light of Applicant’s inten come a bank holding company through the ac tion to improve the capital structure of Bank. quisition of the successor by merger to Texas Considerations concerning convenience and needs Commerce Bank National Association, Houston, of the communities to be served lend weight Texas (“Texas Commerce”). As an incident to toward approval, in that Applicant intends to the merger, Applicant would acquire the beneficial provide operational service and advice to Bank. ownership of more than 20 but less than 25 per Although the banking needs of the area are cent of the shares of each of the following six being adequately served, Applicant intends to Texas banks: Airline National Bank of Houston enable Bank to offer an additional competitive (24.9 per cent) ; North Freeway Bank, Houston alternative for such services as trust services. It (24.9 per cent); Reagan State Bank of Houston is the Board’s judgment that the proposed trans (24.9 per cent); First National Bank of Stafford action would be in the public interest and that (24.7 per cent); Chemical Bank and Trust Com the application should be approved. pany, Houston (21.1 per cent); and Lockwood It is hereby ordered, for the reasons set National Bank of Houston (20.4 per cent). forth above, that said application be and hereby The described shares of the six banks other is approved, provided that the acquisition so ap than Texas Commerce are owned by Texas Com proved shall not be consummated (a) before the merce Shareholders Company, all the shares of thirtieth calendar day following the date of this which are held by trustees for the benefit of the Order or (b) later than three months after the shareholders of Texas Commerce. As a result of date of this Order, unless such period is extended the merger, Applicant will succeed to beneficial for good cause by the Board, or by the Federal ownership of all of the shares of Texas Commerce Reserve Bank of Kansas City pursuant to dele Shareholders Company, and, indirectly, of the gated authority. described shares of the six banks. By order of the Board of Governors, May 21, As required by section 3(b) of the Act, the 1971. Board gave written notice of receipt of the ap plication to the Comptroller of the Currency and Voting for this action: Chairman Burns and Gov the Texas Commissioner of Banking, and requested ernors Robertson, Mitchell, Maisel, and Brimmer. their views and recommendations. Both recom Absent and not voting: Governors Daane and Sher rill. mended approval of the application. Notice of receipt of the application was pub (Signed) Kenneth A. Kenyon, lished in the Federal Register on March 24, 1971 Deputy Secretary. (36 Federal Register 5537), providing an oppor tunity for interested persons to submit comments [seal] and views with respect to the proposal. A copy of the application was forwarded to the United TEXAS COMMERCE BANCSHARES, INC., States Department of Justice for its consideration. HOUSTON, TEXAS Time for filing comments and views has expired and all those received have been considered by In the matter of the application of Texas Com the Board. merce Bancshares, Inc., Houston, Texas, for ap The Board has considered the application in proval of action to become a bank holding com the light of the factors set forth in section 3(c) pany. of the Act, including the effect of the proposed acquisition on competition, the financial and Order Approving Action to Become managerial resources and future prospects of the a Bank Holding Company Applicant and the banks concerned, and the con There has come before the Board of Governors, venience and needs of the communities to be pursuant to section 3(a)(1) of the Bank Hold served, and finds that: ing Company Act of 1956 (12 U.S.C. 1842(a) Applicant is a newly-formed organization and (1)) and section 222.3(a) of Federal Reserve has no operating history. Upon acquisition of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
540 FEDERAL RESERVE BULLETIN □ JUNE 1971 Texas Commerce ($865 million of deposits), merce and the six associated banks are consistent Applicant would become the fourth largest bank with approval of the application. Applicant will holding company in the State and would control begin operations in a satisfactory financial condi about 4 per cent of the deposits in the State. tion and will be able to draw management exper (All banking data are as of June 30, 1970, and tise from Texas Commerce. Its prospects, which reflect holding company acquisitions approved depend largely on those of Texas Commerce, are through April 30, 1971.) favorable. The convenience and needs of the Texas Commerce is located in downtown Houston area will not be materially affected by Houston. It is the second largest banking organi consummation of Applicant’s proposal. It is the zation in the Houston area with control of 16.3 Board’s judgment that the proposed transaction per cent of the deposits in the Houston SMSA, would be in the public interest and that the appli which approximates the relevant market. (Texas cation should be approved. Commerce will be merged into a nonoperating It is hereby ordered, for the reasons sum bank which has significance only as a vehicle to marized above, that said application be and hereby accomplish the acquisition of all the shares of is approved, provided that the acquisition so ap Texas Commerce. Acquisition of the shares of the proved shall not be consummated (a) before the resulting bank is treated as an acquisition of the thirtieth calendar day following the date of this shares of Texas Commerce.) Order or (b) later than three months after the Airline National Bank of Houston ($24 million date of this Order, unless such period is extended of deposits), North Freeway Bank ($3 million for good cause by the Board, or by the Federal of deposits), Reagan State Bank of Houston ($54 Reserve Bank of Dallas pursuant to delegated million of deposits), First National Bank of Staf authority. ford ($7 million of deposits), Chemical Bank By order of the Board of Governors, May 27, and Trust Company ($19 million of deposits), 1971. and Lockwood National Bank ($26 million of deposits) are all located in areas in or adjacent Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Daane, Maisel, Brimmer, to the city of Houston. and Sherrill. Texas Commerce acquired its indirect interest in five of the six banks in 1968 in order to estab (Signed) Kenneth A. Kenyon, Deputy Secretary. lish correspondent relationships with these retail banks and make it a stronger competitor of the [seal] other large Houston banks. In 1969 it participated in the organization of, and thereby acquired an THE CENTRAL BANCORPORATION, INC., interest in, North Freeway Bank. While Texas CINCINNATI, OHIO Commerce presently exerts some influence over the operations of these six banks, the Board notes In the matter of the application of The Central Applicant’s assertion that they “will not be con Bancorporation, Inc., Cincinnati, Ohio, for ap trolled by Applicant [and] they will not be sub proval of acquisition of 100 per cent of the sidiaries of Applicant within the meaning of the voting shares (less directors’ qualifying shares) term ‘subsidiaries’ as defined in the Act.” Since of the successor by merger to The First Trust and it appears that the proposed transaction is essen- Savings Bank, Zanesville, Ohio. tially a corporate reorganization of existing in terests and reflects neither expansion of the group Order Approving Acquisition of Bank Stock nor an increase in the banking resources controlled by Bank Holding Company by it, consummation of Applicant’s proposal is not expected to affect existing or potential banking There has come before the Board of Governors, competition. pursuant to section 3(a)(3) of the Bank Holding On the basis of the record before it, the Board Company Act of 1956 (12 U.S.C. 1842(a)(3)), concludes that consummation of this proposal and section 222.3(a) of Federal Reserve Regula would not have a significant adverse effect on tion Y (12 CFR 222.3(a)), an application by The competition in any relevant area. Considerations Central Bancorporation, Inc., Cincinnati, Ohio relating to financial and managerial resources and (“Applicant”), a registered bank holding com prospects as they relate to Applicant, Texas Com pany, for the Board’s prior approval of the acqui- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 541 sition of 100 per cent of the voting shares (less subsidiary nearest to Bank is located in Marietta, directors’ qualifying shares) of the successor by 60 miles southeast of Zanesville, and the nearest merger to The First Trust and Savings Bank, offices of the two banks are separated by one Zanesville, Ohio (“Bank”). The new bank has county and five banking offices. It appears that significance only as a means of acquiring all of there is no significant present competition between the shares of the bank to be merged into it; the Applicant’s subsidiaries and Bank; that consum proposal is therefore treated herein as one to mation of the proposal could serve to stimulate acquire shares of The First Trust and Savings additional competition in the Zanesville area by Bank. severing a present relationship between Bank and As required by section 3(b) of the Act, the the largest bank in Zanesville. It further appears Board gave written notice of receipt of the appli that the proposed acquisition would not foreclose cation to the Superintendent of Banks of the significant potential competition because of Ohio’s State of Ohio and requested his views and recom restrictive branching laws and of the distances mendation. The Superintendent recommended involved; nor does it appear that any competing approval of the application. banks would be adversely affected by the proposed Notice of receipt of the application was pub acquisition. Based upon the record, the Board lished in the Federal Register on April 15, 1971 concludes that consummation of the proposed (36 Federal Register 7160), providing an oppor acquisition would have no significant adverse effect tunity for interested persons to submit comments on competition in any relevant area. and views with respect to the proposed transaction. The banking factors and convenience and A copy of the application was forwarded to the needs considerations involved in this proposal are United States Department of Justice for its con consistent with and lend some weight in favor of sideration. Time for filing comments and views approval of the application. Affiliation with Ap has expired and all those received have been con plicant would enhance Bank’s prospects, and sidered by the Board. permit Bank to improve and enlarge present The Board has considered the application in services in its trust department, and in its install the light of the factors set forth in section 3(c) ment and mortgage lending. In addition, Appli of the Act, including the effect of the proposed cant would assist Bank in researching the feasi acquisition on competition, the financial and bility of establishing other branches in northern managerial resources and future prospects of Muskingum County which is apparently in need Applicant and the banks concerned, and the con of additional banking facilities. It is the Board’s venience and needs of the communities to be judgment that the proposed transaction would served. Upon such consideration the Board finds be in the public interest, and that the application should be approved. that: Applicant, the ninth largest banking organiza It is hereby ordered, for the reasons set forth in the findings summarized above, that said appli tion in Ohio, controls two banks with deposits cation be and hereby is approved, provided that of approximately $501 million, representing less the action so approved shall not be consummated than 3 per cent of total commercial bank de (a) before the thirtieth calendar day following posits in the State. (All banking data are as of the date of this Order, or (b) later than three June 30, 1970, adjusted to reflect holding com months after the date of this Order, unless such pany formations and acquisitions approved by the period is extended for good cause by the Board, Board through April 30, 1971). The acquisition or by the Federal Reserve Bank of Cleveland pur of Bank, with deposits of $24 million, would suant to delegated authority. increase Applicant’s control of deposits in the By order of the Board of Governors, June 1, State by only 0.1 per cent, and its present rank 1971. ing among banking organizations in the State would not change. Voting for this action: Vice Chairman Robertson Bank has five offices and is the smallest of three and Governors Mitchell, Maisel, Brimmer, and Sherbanks located by Muskingum County, all of which ril. Absent and not voting: Chairman Burns and Governor Daane. are headquartered in Zanesville. The two larger banks control approximately 43 and 30 per cent (Signed) K enneth A. Kenyon, of county deposits, respectively, and Bank con Deputy Secretary trols 27 per cent of such deposits. Applicant’s [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
542 FEDERAL RESERVE BULLETIN □ JUNE 1971 FIRST AMERICAN NATIONAL for the purpose of acquiring Bank ($565.9 mil CORPORATION lion deposits). (All banking data are as of June NASHVILLE, TENNESSEE 30, 1970, and reflect holding company approvals and acquisitions to date). Upon consummation In the matter of the application of First Ameri of the proposal, Applicant will assume Bank’s can National Corporation, Nashville, Tennessee, present position as the State’s third largest bank for approval of action to become a bank holding ing organization with 8.5 per cent of total de company. posits in the State. As Applicant has no present operations or subsidiaries, consummation of the Order Approving Action to Become a Bank Holding Company proposal would eliminate neither existing nor po tential competition. Neither does it appear that There has come before the Board of Governors, there would be adverse effects on any bank in the pursuant to section 3(a)(1) of the Bank Hold area involved. ing Company Act of 1956 (12 U.S.C. The financial and managerial resources and 1842(a)(1)) and section 222.3(a) of Federal prospects of Bank are generally satisfactory, as Reserve Regulation Y (12 CFR 222.3(a)), an would be those of Applicant upon approval. Con application by First American National Corpora summation of the proposal would have no im tion, Nashville, Tennessee (“Applicant”), for mediate effect on the convenience and needs of the Board’s prior approval of action whereby the community involved. Considerations under Applicant would become a bank holding com these factors are consistent with approval. It is pany through the acquisition of 100 per cent of the Board’s judgment that consummation of the the voting shares (less directors’ qualifying proposal would be in the public interest and that shares) of the successor by merger to First Ameri the application should be approved. can National Bank of Nashville, Nashville, Ten It is hereby ordered, for the reasons sum nessee (“Bank”), and a nonoperating bank. The marized above, that said application be and nonoperating bank has significance only as a hereby is approved, provided that the acquisition means of acquiring all of the shares of the bank so approved shall not be consummated (a) before to be merged into it; the proposal is therefore the thirtieth calendar day following the date of treated herein as one to acquire shares of Bank. this Order or (b) later than three months after As required by section 3(b) of the Act, the the date of this Order, unless such period is ex Board gave written notice of receipt of the appli tended for good cause by the Board, or by the cation to the Comptroller of the Currency and Federal Reserve Bank of Atlanta pursuant to requested his views and recommendation. The delegated authority. Comptroller offered no objection to approval of By order of the Board of Governors, June 3, the application. 1971. Notice of receipt of the application was pub lished in the Federal Register on April 20, 1971 Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Daane, Maisel, and Sher (36 Federal Register 7487), providing an oppor rill. Absent and not voting: Governor Brimmer. tunity for interested persons to submit comments (Signed) Kenneth A. Kenyon, and views with respect to the proposal. A copy Deputy Secretary. of the application was forwarded to the United [seal] States Department of Justice for its consideration. MISSOURI BANCSHARES, INC., Time for filing comments and views has expired, KANSAS CITY, MISSOURI and all those received have been considered by the Board. In the matter of the application of Missouri The Board has considered the application in the Bancshares, Inc., Kansas City, Missouri, for ap light of the factors set forth in section 3(c) of proval of acquisition of 90.65 per cent or more of the Act, including the effect of the proposed acqui the voting shares of Bank of Ferguson, Ferguson, sition on competition, the financial and managerial Missouri. resources and future prospects of the Applicant and the bank concerned, and the convenience and Order Approving Acquisition of Bank needs of the communities to be served, and finds Stock by Bank Holding Company that: There has come before the Board of Governors, Applicant is a nonoperating corporation formed pursuant to section 3(a)(3) of the Bank Holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 543 Company Act of 1956 (12 U.S.C. 1842(a)(3)) and Bank appears to be minimal. None of Appli and section 222.3(a) of Federal Reserve Regu cant’s other subsidiary banks competes with Bank lation Y (12 CFR 222.3(a)), an application by to any significant extent. Additionally, the de Missouri Bancshares, Inc., Kansas City, Missouri velopment of such competition in the future is (“Applicant”), a registered bank holding com considered unlikely because of the distances sepa pany, for the Board’s prior approval of the acqui rating Applicant’s subsidiaries and Bank, the sition of 90.65 per cent or more of the voting presence of numerous banking alternatives, and shares of Bank of Ferguson, Ferguson, Missouri Missouri’s restrictive branching law. Consum (“Bank”). mation of the proposal may enhance competition As required by section 3(b) of the Act, the by making Bank a more effective competitor in Board gave written notice of receipt of the appli its service area. It does not appear that existing cation to the Missouri Commissioner of Finance competition would be eliminated, or significant and requested his views and recommendation. potential competition foreclosed, by consumma The Commissioner indicated that he had no ob tion of Applicant’s proposal, or that there would jection to approval of the application. be undue adverse effects on any bank in the area Notice of receipt of the application was pub involved. lished in the Federal Register on April 17, 1971 On the basis of the record before it, the Board (36 Federal Register 7328), providing an oppor concludes that consummation of the proposed tunity for interested persons to submit comments acquisition would not adversely affect competition and views with respect to the proposal. A copy in any relevant area. Considerations relating to of the application was forwarded to the United the financial and managerial resources as they States Department of Justice for its consideration. relate to Applicant, its subsidiaries, and Bank are Time for filing comments and views has expired regarded as consistent with approval of the appli and all those received have been considered. cation. Unlike the other area banks, Bank has The Board has considered the application in the been operated conservatively and does not appear light of the factors set forth in section 3(c) of to have made a broad effort to meet the banking the Act, including the effect of the proposed needs of area residents. Applicant proposes to acquisition on competition, the financial and change this conservative policy and to establish managerial resources and future prospects of the new services, including trust services, payroll Applicant and the banks concerned, and the con accounting, and an expanding consumer loan pro venience and needs of the communities to be gram, which should enable Bank to better serve served, and finds that: the expanding needs of the area. These considera Applicant, the fifth largest registered bank tions relating to convenience and needs lend weight holding company and banking organization in in support of approval of the application. It is the Missouri, has 7 subsidiary banks with $395 mil Board’s judgment that the proposed transaction lion in deposits, representing approximately 3.8 would be in the public interest, and that the per cent of the total commercial bank deposits in application should be approved. the State. (All banking data are as of June 30, It is hereby ordered, for the reasons set forth 1970, and reflect holding company formations above, that said application be and hereby is and acquisitions approved by the Board to date.) approved, provided that the acquisition so ap Consummation of the proposal herein would in proved shall not be consummated (a) before the crease Applicant’s share of total deposits in the thirtieth calendar day following the date of this State to 4 per cent, and Applicant would become Order or (b) later than three months after the the State’s fourth largest registered bank holding date of this Order, unless such period is extended company and banking organization. for good cause by the Board, or by the Federal Bank ($20.9 million deposits) the only bank in Reserve Bank of Kansas City pursuant to dele Ferguson, is the seventh largest of the 12 banks gated authority. in its service area, which is approximated by the By order of the Board of Governors, June 7, northeast portion of St. Louis County, and holds 1971. 6.7 per cent of that area’s deposits. Bank faces Voting for this action: Chairman Burns and Gov strong competition from the other area banks, ernors Robertson, Mitchell, Daane, Maisel, Brimmer, three of which are affiliated with St. Louis-based and Sherrill. holding companies. Applicant has two subsidiaries (Signed) Kenneth A. Kenyon, located 18 and 30 miles from Bank, but the Deputy Secretary amount of competition between these subsidiaries [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
544 FEDERAL RESERVE BULLETIN □ JUNE 1971 SECURITY FINANCIAL SERVICES, INC., acquisitions approved by the Board through April SHEBOYGAN, WISCONSIN 30, 1971). Upon acquisition of Bank ($11 million in deposits), Applicant would increase its share In the matter of the application of Security of State-wide deposits to 0.9 per cent and would Financial Services, Inc., Sheboygan, Wisconsin, become the eleventh largest banking organization for approval of acquisition of 80 per cent or more in the State. of the voting shares of Farmers-Merchants Na Bank, the only bank located in Princeton (est. tional Bank in Princeton, Princeton, Wisconsin. population 1,500), serves the west-central part of Green Lake County. Applicant’s two bank Order Approving Acquisition of Bank ing subsidiaries are approximately 80 miles east Stock by Bank Holding Company of Bank in Sheboygan. There has come before the Board of Governors, Bank is the largest of eight banks competing in pursuant to section 3(a)(3) of the Bank Holding the Princeton area, holding 19.6 per cent of area Company Act of 1956 (12 U.S.C. 1842(a)(3)) deposits. The second and third largest banks in and section 222.3(a) of Federal Reserve Regula the area hold 17.6 per cent and 16.4 per cent of tion Y (12 CFR 222.3(a)), an application by area deposits, respectively. All of the banks in the Security Financial Services, Inc., Sheboygan, Wis area primarily serve the towns in which they are consin (“Applicant”), a registered bank holding located, and Bank is not regarded as dominating company, for the Board’s prior approval of the the area. Based upon the record before it, the acquisition of 80 per cent or more of the voting Board concludes that consummation of the pro shares of Farmers-Merchants National Bank in posed acquisition would not eliminate significant Princeton, Princeton, Wisconsin (“Bank”). existing or potential competition, nor would it As required by section 3(b) of the Act, the have an adverse competitive effect on other area Board gave written notice of receipt of the appli banks. cation to the Comptroller of the Currency and Considerations relating to the financial and requested his views and recommendation. The managerial resources and future prospects, as they Comptroller offered no objection to approval of relate to Applicant, its subsidiaries, and Bank are the application. regarded as consistent with approval of the appli Notice of receipt of the application was pub cation. Bank’s affiliation with Applicant would lished in the Federal Register on April 22, 1971 make available trust, travel, and computer services (36 Federal Register 7623), providing an oppor to Bank’s customers for the first time and exist tunity for interested persons to submit comments ing services would be improved and broadened. and views with respect to the proposed trans Affiliation would also give Bank the expertise action. A copy of the application was forwarded and capability to service certain loan requests to the United States Department of Justice for that it has avoided in the past because of a lack its consideration. The time for filing comments of experience in handling the larger commercial and views has expired and all those received have and agricultural borrowers in the area. Considera been considered by the Board. tions relating to the convenience and needs of the The Board has considered the application in communities served by bank lend some support the light of the factors set forth in section 3(c) of for approval of the application. It is the Board’s the Act, including the effect of the proposed judgment that consummation of the proposed acquisition on competition, the financial and acquisition would be in the public interest, and managerial resources and future prospects of the that the application should be approved. Applicant and the banks concerned, and the con It is hereby ordered, for the reasons set forth venience and needs of the communities to be in the findings summarized above, that said appli served. Upon such consideration, the Board finds cation be and hereby is approved, provided that that : the acquisition so approved shall not be consum Applicant, the thirteenth largest banking or mated (a) before the thirtieth calendar day fol ganization in Wisconsin, controls two banks with lowing the date of this Order or (b) later than aggregate deposits of $73 million, representing three months after the date of this Order, unless 0.8 per cent of the State’s total deposits. (All such period is extended for good cause by the banking data are as of June 30, 1970, adjusted to Board, or by the Federal Reserve Bank of Chi reflect bank holding company formations and cago pursuant to delegated authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 545 By order of the Board of Governors, June 7, and the banks concerned, and the convenience and 1971. needs of the communities to be served, and finds Voting for this action: Chairman Burns and Gov that: ernors Robertson, Mitchell, Daane, Maisel, Brimmer Applicant is a nonoperating Michigan corpora and Sherrill. tion recently formed for the purpose of acquiring (Signed) Kenneth A. Kenyon, Bank with deposits of $106 million as of Decem Deputy Secretary ber 31, 1970. As Applicant has no present [seal] operations or subsidiaries, consummation of the proposal would eliminate neither existing nor po GREAT LAKES HOLDING COMPANY tential competition, and there would be no adverse KALAMAZOO, MICHIGAN effects on competing banks. The acquisition proposed herein would result in In the matter of the application of Great Lakes Bank’s becoming a stronger and more viable Holding Company, Kalamazoo, Michigan, for ap banking institution, and a more effective competi proval of action to become a bank holding com tor in the relevant area. Banking factors involved pany through the acquisition of not less than 89 weigh heavily in favor of approval of the appli per cent, nor more than 92 per cent, of the voting cation since Applicant will provide Bank with an shares of Industrial State Bank & Trust Company, additional $2 million of needed capital and has Kalamazoo, Michigan. formulated plans to improve Bank’s present oper Order Approving Action to Become ating procedures. The Michigan Commissioner of a Bank Holding Company Financial Institutions has recommended approval of the application based on the proposed improve There has come before the Board of Governors, ment of Bank’s capital position and management pursuant to section 3(a)(1) of the Bank Holding under Applicant’s control. Whereas there is no Company Act of 1956 (12 U.S.C. 1842(a)(1)), indication that present banking needs of the area and section 222.3(a) of Federal Reserve Regula are not being adequately served at the present tion Y (12 CFR 222.3(a)), an application by time, it is apparent that consummation of the pro Great Lakes Holding Company, Kalamazoo, posal would strengthen the Bank and enable it to Michigan, for the Board’s prior approval of action serve better the banking needs of its area. There whereby Applicant would become a bank holding fore, considerations relating to the convenience company through the acquisition of not less than and needs of the communities to be served also 89 per cent, nor more than 92 per cent, of the lend weight in favor of approval of the applica voting shares of Industrial State Bank & Trust tion. It is the Board’s judgment that the proposed Company, Kalamazoo, Michigan. transaction would be in the public interest and As required by section 3(b) of the Act, the that the application should be approved. Board gave written notice of receipt of the appli It is hereby ordered, For the reasons set cation to the Michigan Commissioner of Finan forth above, that said application be and hereby cial Institutions and requested his views and is approved, provided that the acquisition so recommendation. The Commissioner recom approved shall not be consummated (a) before mended approval of the application. the thirtieth calendar day following the date of this Notice of receipt of the application was pub Order, or (b) later than three months after the lished in the Federal Register on June 2, 1971 date of this Order, unless such period is extended (36 Federal Register 10756), providing an oppor for good cause by the Board, or by the Federal tunity for interested persons to submit comments Reserve Bank of Chicago pursuant to delegated and views with respect to the proposal. A copy of authority. the application was forwarded to the United States By order of the Board of Governors, June 11, Department of Justice for its consideration. Time 1971. for filing comments and views has expired and all those received have been considered by the Board. Voting for this action: Chairman Burns and Gov ernors Robertson, Mitchell, Maisel, Brimmer, and The Board has considered the application in the Sherrill. Absent and not voting: Governor Daane. light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi (Signed) Kenneth A. Kenyon, Deputy Secretary. tion on competition, the financial and managerial resources and future prospects of the Applicant [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements CHANGE IN BOARD STAFF stantial volume, the present system is vulnerable to serious transportation delays and manpower The Board of Governors of the Federal Reserve shortages. Structural changes in the present check- System has announced the promotion, effective clearing system can effect significant savings in May 31, 1971, of James B. Eckert to the position manpower and unnecessary handling of checks. of Associate Adviser in the Division of Research These changes will result in faster, more con and Statistics. venient, and more economical banking services for APPOINTMENT OF RESERVE BANK OFFICERS the public. They will reduce the cost of operations. The Board therefore states as a matter of policy The Board of Governors has approved the ap that it places high priority upon efforts by the pointment by the directors of the Federal Reserve Federal Reserve System to improve the Nation’s Bank of Cleveland of Willis J. Winn as President means of making payments, initially along the of that Bank, effective September 1. following lines: Mr. Winn has been Dean of the Wharton School 1. Extending present clearing arrangements, of Finance and Commerce and Vice Provost of the University of Pennsylvania since 1958. From in cities with Federal Reserve offices, into larger zones of immediate payment, consist 1961 to 1970 he was a director of the Federal Re ent with transportation possibilities, check serve Bank of Philadelphia and served as its chair volumes, and the location of check-processing man from 1966 to 1970. He holds degrees from centers. Central College, Fayette, Missouri (A.B. and 2. Establishing other regional clearing facili LL.D.), the University of Pennsylvania (M.A. ties, in which settlements are made in im and Ph.D.), and Villanova University (LL.D.). mediately available funds, located wherever The directors of the Federal Reserve Bank of warranted by the need for more expeditious St. Louis have named Eugene A. Leonard as First and economical check handling, or other op Vice President, effective August 1, to succeed erating and financial conditions. Dale M. Lewis. Mr. Leonard has been associated 3. (a) Encouraging banks and their custom with the Federal Reserve Bank of St. Louis since ers to make greater use of the expanded 1961 and has been Senior Vice President since capabilities of the Federal Reserve wire trans 1970. On loan to the Board of Governors fer system, (b) Removing restrictions on since August of last year, he has been serving as an Assistant Secretary in the Office of the third-party transfers of demand deposits, and Secretary. extending the time period in which the wire transfer system can be used, (c) Expanding STATEMENT OF POLICY ON PAYMENTS facilities at Reserve Bank offices, where justi MECHANISM fied by traffic potentials, to include high-speed The Board of Governors issued on June 17, 1971, tape transmission, and computer-to-computer a policy statement calling for basic changes in the communications. Nation’s system for handling money payments. Plans for making these basic changes in the These are, essentially, transitional steps toward present money transfer system should be pursued replacing the use of checks with electronic transfer actively, to achieve as soon as possible an accel of funds. The Board’s statement, which was di erated flow of funds along more optimal routing rected to the Presidents of the 12 Federal Reserve patterns. These initiatives are generally intended Banks, is as follows: to supplement those efficient direct check-exchange Increasing the speed and efficiency with which programs that are now in existence. the rapidly mounting volume of checks is handled The first objective should be expanasion of the is becoming a matter of urgency. Until electronic geographic area of existing immediate payment facilities begin to replace check transfer in sub zones. This should be accomplished as soon as 546 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
necessary arrangements can be made. Meantime, The questions and answers were prepared studies looking to the establishment of new clear jointly by the staffs of the Board, the Comptroller ing centers, wherever warranted, should be under of the Currency, the Federal Deposit Insurance taken promptly by each Federal Reserve Bank, Corporation, and the Federal Home Loan Bank and submitted to the Board for review. Expan Board, each of which will issue them to institutions sion of facilities at Federal Reserve offices for under its supervision. The information is not increased access to the Reserve System’s wire net a regulation of the Board and is merely designed work should be concluded at the earliest prac to provide guidance to financial institutions. Insti ticable time, generally during the next 12 to 18 tutions that act in accordance with the informa months. tion, however, will be regarded by the Board’s examiners as acting in compliance with the Act. TRANSFER OF FEDERAL RESERVE BRANCH TERRITORY MORTGAGE COMMITMENT DATA The territory of the Denver Branch of the Federal Reserve Bank of Kansas City will be Data for mortgage commitments of $100,000 and extended effective July 6, 1971, to include the over authorized by 15 life insurance companies to State of Wyoming. Wyoming has been in the acquire loans on nonfarm multifamily and non territory served by the Omaha Branch of the residential properties—only for the period 1951 Federal Reserve Bank of Kansas City. through 1970—may be obtained from Publications Services, Division of Administrative Services, PUBLICATION OF ANNUAL REPORT Board of Governors of the Federal Reserve Sys tem, Washington, D.C. 20551. Included in the The Fifty-Seventh Annual Report of the Board of tabulations are monthly, quarterly, and annual Governors of the Federal Reserve System, covering statistics on total number of loans and total loan operations for the calendar year 1970, is available amount, and also averages for loan amount, con for distribution. Copies may be obtained upon re quest to Publications Services, Division of Ad tract interest rate, maturity, loan-to-value ratio, ministrative Services, Board of Governors of the per cent constant, debt coverage ratio, and capi Federal Reserve System, Washington, D.C. 20551. talization rate. Collection of these data was initiated as part of the broad study of interest INFORMATION ON FAIR CREDIT REPORTING ACT rates conducted by the National Bureau of Eco nomic Research, aided by grants from the Life The Board of Governors on May 24, 1971, issued Insurance Association of America. The Federal a series of questions and answers to assist financial Reserve assisted in certain phases of collecting institutions in complying with the Fair Credit Re porting Act (a portion of Public Law 91-508). and tabulating the commitment data prior to mid- The general purpose of the Act, which became 1965 and is in the process of analyzing all of the effective on April 25, is to assure fair and accurate statistics. Current data are collected by the Life reporting of information regarding consumers. Insurance Association of America. 547 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
National Summary of Business Conditions Released for publication June 14 Industrial production and nonfarm employment increased. Output of coal and petroleum prod increased in May. The unemployment rate edged ucts, however, declined. up further and retail sales declined. Wholesale prices continued to advance. Commercial bank EMPLOYMENT credit, the money supply, and time and savings deposits increased in May. Between mid-May Nonfarm payroll employment rose moderately and mid-June, yields on short and intermediate in May, reflecting increases in trade, durable goods U.S. Government securities rose and yields on manufacturing, and State and local governments. municipal bonds declined. The average workweek of manufacturing produc tion workers rose 0.2 hour, returning to the March level of 39.9 hours. The unemployment INDUSTRIAL PRODUCTION rate edged up further in May to 6.2 per cent, the same as in December 1970. Industrial production rose 0.7 per cent further in May and at 167.3 per cent of the 1957-59 average was 4.2 per cent below the mid-1969 RETAIL SALES peak. Output of consumer goods and materials The value of retail sales declined nearly 1 per continued to rise and production of total equip cent in May, according to the advance report, ment leveled off following earlier declines. and was 6 per cent above a year earlier. Durable Auto assemblies rose 5 per cent and were at an goods sales were 3 per cent lower and nondurable annual rate of 8.5 million units. Production goods sales were unchanged. schedules for June indicate little change from the May rate. Output of furniture and consumer WHOLESALE AND CONSUMER PRICES staples increased further in May, while production of appliances and television sets changed little. Wholesale prices, seasonally adjusted, increased Output of business and defense equipment, which 0.3 per cent between April and May. Industrial declined about one-fifth from the 1969 peak to commodities rose 0.4 per cent, reflecting sharply April, rose 0.3 per cent in May. Production of higher prices for metals and metal products and iron and steel, textiles, rubber, and chemicals fuels. Prices of farm and food products dropped 0.2 per cent with declines in fresh and dried fruits INDUSTRIAL PRODUCTION and vegetables, grains, and fluid milk. 1957-59=100 The consumer price index rose 0.3 per cent in April, after seasonal adjustment, as food prices continued their rapid advance, but mortgage in terest costs and gasoline prices declined. BANK CREDIT, DEPOSITS, AND RESERVES Commercial bank credit, adjusted for transfers of loans between banks and their affiliates, in creased $4.4 billion in May. This increase followed a slight decline in April but was about the same as the average monthly increase over the first quarter. Growth in loans accounted for a major part of the May credit expansion and was asso ciated principally with increases in loans to busi nesses and nonbank financial institutions. Hold ings of municipal and Federal agency securities F.R. indexes, seasonally adjusted. Latest figures: May. 548 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
increased substantially further but less rapidly excess reserves increased on average but member than in other recent months while holdings of bank borrowings also rose. U.S. Treasury securities were unchanged. SECURITY MARKETS The money stock rose sharply in May—at an annual rate of 16.3 per cent—considerably faster Treasury bill yields rose about 50 to 60 basis than in April and the first quarter. U.S. Govern points on balance between mid-May and mid- June. The 3-month bill was bid at about 4.70 per ment deposits declined somewhat. Growth in time cent in the middle of June, compared with around and savings deposits—at an annual rate of 14.5 4.10 per cent a month earlier. Yields on interper cent—was larger than in April but well below mediate-term Government notes and bonds rose the unusually rapid first quarter expansion. In by about 10 to 15 basis points over the same flows of time and savings deposits other than large period, while rates on long-term bonds changed negotiable CD’s were about the same as in April little on balance. but much smaller than earlier in the year. Com Yields on new corporate securities rose sharply mercial bank sales of large negotiable CD’s in early in the interval, but a subsequent improvement creased in May. of market conditions brought rates down to month Free reserves of member banks averaged about earlier levels by mid-June. Seasoned security rates, $10 million over the 4 weeks ending May 26, which tend to lag new issue yields, rose mod little different from the average of the previous erately. Yields on municipal bonds dropped about 4 weeks. Relatively high free reserves in the first 10 basis points from mid-May to mid-June. half of the month were about offset by net bor Common stock prices and volume remained rowed reserves in the second half. Over May, steady on balance over the same period. PRICES INTEREST RATES Wholesale Consumer 1967=100 PER CENT 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, April; Wholesale, May. or more and for 90-day Treasury bills. Latest figures: week ending June 5. 549 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 a JUNE 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 (revised 1970 data for annual flows and for assets and liabilities) 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 (see above for flow of funds): Insured commercial banks, 1970: A 94 Income, expenses, and dividends Member banks, 1970: Income, expenses, and dividends: A 94 By class of bank A 96 By Federal Reserve district A 102 By size of bank A 104 Income ratios, by class of bank and Federal Reserve district A 110 Bank holding companies, December 31, 1970 A 121 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 . /Mar. 1971 A-71.1—A-71.9 Banks and branches, number, by Flow ol tunds...................................... ^June 19?1 A-70—A-71.1 class and State................................... Apr. 1971 A-94—A-95 Semiannually ” Als^ZlHabilities: 1959-70............................................ Mar. 1971 A-71.10—A-71.21 An”^ of changes in number.... Feb. 1971 A-96 data <revised>........................ June 1971 A-71.2-A-71.J °%»?rl,n0nt.™iufederal ReSCrVe F,h 1971 4 97 '966-70............................................ Mar. 1971 A-70-A-7I.9 Par List, number........................... Feb. 1971 A-97 1970 selected data (revised)......... June 1971 A-70—A-71.1 Annually Income and expenses: Federal Reserve Banks.................... Feb. 1971 A-94—A-95 Bank holding companies: Insured commercial banks............. June 1971 A-94 List of, Dec. 31, 1970....................... June 1971 A-110 Member banks: Banking offices and deposits of Calendar year................................ June 1971 A-94—A-103 group banks, Dec. 31, 1969... . Aug. 1970 A-95 Income ratios................................ June 1971 A-104—A-109 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............................................................................ June 1971 A-117 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 4 BANK RESERVES AND RELATED ITEMS □ JUNE 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 Bought r u H e n p e d u l e d r r co D a a u n d i n s d ts Float 2 as O F s t e . h R ts e . r 3 Total 4 s G to o c ld k c D a e R r c r t c a i i g o f w i h u c i t a n n s t g t e r st e o c a n u u n c r t d y Total out chase vances ing right agree ment Averages of daily figures 1939—Dec................................. 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec................................. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec................................. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec................................. 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960 Dec................................. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965 Dec................................. 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966 Dec................................. 43,760 43,274 486 570 2,383 46,864 13,158 6,284 1967—Dec................................. 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—Dec................................. 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—j)ec................................. 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—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................................. 62,719 62,381 338 319 2,671 896 66,691 10,732 400 7,235 Apr.................................. 63,371 63,153 218 148 3,047 1,103 67,747 10,732 400 7,291 64,714 64,368 346 330 2,688 1,076 68,910 10,448 400 7,357 Week ending— 1971—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 2,853 922 66,699 10,732 400 7,242 31........................... 63,076 62,581 495 257 2,482 966 66,874 10,732 400 7,255 Apr. 7........................... 63,268 62,709 559 197 2,718 1,010 67,308 10,732 400 7,268 14........................... 63,114 62,921 193 150 2,958 1,053 67,338 10,732 400 7,284 21........................... 63,526 63,394 132 84 3,259 1,177 68,110 10,732 400 7,296 28........................... 63,476 63,424 52 176 3,252 1,152 68,131 10,732 400 7,309 May 5........................... 64,238 63,808 430 174 2,753 1,186 68,438 10,732 400 7,326 12........................... 64,504 63,981 523 99 2,540 1,297 68,537 10,561 400 7,345 19........................... 64,804 64,452 352 306 2,964 1,109 69,276 10,332 400 7,354 26*>......................... 64,942 64,764 178 269 2,779 851 68,949 10,332 400 7,372 End of month 1971—Mar................................. 64,345 6 62,841 1,504 391 2,550 997 68,421 10,732 400 7,270 Apr................................. 63,721 6 63,721 81 2,824 1,169 67,851 10,732 400 7,329 MayP.............................. 64,764 6 64,764 1,051 2,409 927 69,263 10,332 400 7,390 Wednesday 1971—Mar. 3........................... 62,767 6 62,490 277 262 2,859 867 66,846 10,732 400 7,212 10........................... 62,495 6 62,233 262 1,521 2,462 861 67,414 10,732 400 7,225 17........................... 63,054 6 62,301 753 567 2,752 921 67,442 10,732 400 7,238 24........................... 62,455 6 62,405 50 820 2,295 981 66,612 10,732 400 7,249 31........................... 64,345 6 62,841 1,504 391 2,550 997 68,421 10,732 400 7,263 Apr 7........................... 62,216 6 762,216 176 3,731 1,026 67,249 10,732 400 7,274 14........................... 62,904 6 762,904 217 2,759 1,085 67,049 10,732 400 7,290 21........................... 64,015 6 63,394 621 88 3,170 1,164 68,529 10,732 400 7,297 28........................... 64,020 6 63,659 361 718 2,995 1,197 69,018 10,732 400 7,310 May 5^......................... 65,316 6 64,043 1,273 802 2,789 1,216 70,262 10,732 400 7,331 12 p......................... 64,185 6 63,921 264 25 2,305 1,324 67,897 10,332 400 7,350 19 p......................... 65,148 6 64,530 618 985 2,754 826 69,861 10,332 400 7,360 26 p......................... 64,971 6 64,764 207 1,274 2,488 871 69,706 10,332 400 7,381 For notes see opposite page. 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JUNE 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 r c e i i n n r c y T c r u a e r s a y h s with F.R. Banks O F a t . h c R e . r b F i l l i . i a R ti e . s c t u io la n h in ol g d s T u re r a y s F ei o g r n Other2 counts 3 cap an it d al* B F W a . n R it k h . s c r C a o e n n u in d c r y 5 Total Averages of daily figures 7,609 2,402 616 719 248 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 1.547 493 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 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 53,490 544 1,440 182 845 2,215 23,105 4,805 27,910 .1970—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 24,601 5,085 29,686 .............Mar. 56,716 499 1,047 148 752 2,194 24,814 5,071 29,885 .............Apr. 57,155 506 1,112 173 690 2,244 25,235 5,173 30,408 .............May? Week ending— 55,719 469 924 138 768 2,321 24,522 5,020 29,542 .1971—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 24,691 4,791 29,482 .........................24 56,110 475 806 162 694 2,198 24,817 5,123 29,940 .........................31 56,428 489 1,048 148 828 2,281 24,486 5,184 29,670 .Apr. 7 56,971 497 807 162 727 2,208 24,381 5,244 29,625 ...........14 56,880 502 945 141 760 2,112 25,199 4,739 29,938 .......21 56,610 506 1,338 140 704 2,166 25,108 5,049 30,157 ...........28 56,715 519 1,035 154 714 2,262 25,497 5,283 30,780 .May 5 57,164 507 1,314 167 689 2,299 24,703 5,381 30,084 .......12 57,266 499 1,248 162 697 2,148 25,344 5,018 30,362 ...........19 57,165 502 1,045 187 677 2,225 25,254 4,994 30,248 .......26® End of month 56,304 483 858 201 794 2,255 25,932 5,124 31,056 .1971—Mar. 56,592 509 1,322 162 730 2,246 24,752 5,283 30,035 .............Apr. 57,393 507 805 208 676 2,302 25,494 5,207 30,701 .........May® Wednesday 55,897 469 960 114 740 2,355 24,655 5,022 29,677 .1971—Mar. 3 56,270 469 1,203 134 745 2,402 24,549 5,396 29,945 ................10 56,363 460 363 134 718 2,103 25,671 5,060 30,731 .......................17 56,220 479 926 146 669 2,180 24,373 4,792 29,165 .......................24 56,294 481 858 201 794 2,255 25,932 5,124 31,056 .......................31 56,864 503 824 163 1,015 2,363 23,922 5,185 29,107 . Apr. 7 57,102 504 772 148 755 2,081 24,108 5,244 29,352 ...........14 56,846 512 1,470 150 715 2,137 25,128 4,739 29,867 ........21 56,713 508 1,401 133 683 2,195 25,827 5,051 30,878 ...........28 57,008 519 493 148 685 2,313 27,559 5,292 32,851 .May 5*> 57,382 500 1,112 161 687 2,149 23,988 5,381 29,369 ........12® 57,306 507 1,224 195 646 2,197 25,878 5,037 30,915 ........19p 57,373 505 887 156 671 2,241 25,985 4,994 30,979 ........2 6p 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- 8 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. of-business figures for reserve period 2 weeks previous to report date. liabilities and capital” are shown separately; formerly, they were 6 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 □ JUNE 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 e t ld al qu R ir e e d 1 Excess B r F i a n o a . n R w g t k s . s s F e r r r e v e e e s T h o e t ld al qu R ir e e d i Excess B r F i a n o a . n g R w 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 i Excess B r F i a n o a . n R w g t k s . s s F e r r r e v e e e s 1939—Dec............. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec............. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec............. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec............. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1 1 9 9 6 63 0 — —D D e e c c .. ........... 2 1 0 9 , , 7 2 4 8 6 3 2 1 0 8 , , 2 5 1 27 0 5 7 3 5 6 6 32 87 7 6 2 6 0 9 9 3 3 , , 9 6 5 8 1 7 3 3 , , 8 6 9 5 5 8 2 5 9 6 3 1 7 9 1 1 9 0 1,0 9 5 5 6 8 1,0 9 5 5 1 3 4 5 26 8 -2 -4 1 1 1 9 9 6 64 5 — —D De e c c 2 2 1 2 , , 6 7 0 1 9 9 2 2 2 1, , 1 2 9 6 8 7 4 4 1 5 1 2 4 24 5 3 4 1 - 6 2 8 4 4 , , 3 0 0 8 1 3 4 4 , , 2 0 6 6 0 2 4 2 1 1 11 3 1 5 - -1 7 4 0 1 1, ,1 08 43 3 1 1 , ,1 08 2 6 8 - 1 3 5 2 23 8 -3 -8 1 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—De c 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 1,184 15 85 -70 1969—De c 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 27 -9 1970—Ma y 27,910 27,729 181 976 -795 5,307 5,302 5 176 -171 1,285 1,287 -2 23 -25 June........... 27,567 27,380 187 888 -701 5,201 5,164 37 132 -95 1,250 1,247 3 3 July............ 28,128 27,987 141 1,358 -1,217 5,315 5,306 9 269 -260 1,290 1,293 -3 i 29 -132 Aug............ 28,349 28,204 145 827 -682 5,381 5,378 3 159 -156 1,298 1,304 -6 61 -67 Sept............ 28,825 28,553 272 607 -335 5,497 5,436 61 117 -56 1,316 1,310 6 14 -8 Oct.............. 28,701 28,447 254 462 -208 5,583 5,542 41 12 29 1,307 1,309 -2 11 -13 Nov............ 28,558 28,438 120 425 -305 5,441 5,444 -3 60 -63 1,282 1,283 -1 11 -12 Dec............. 29,265 28,993 272 321 -49 5,623 5,589 34 25 9 1,329 1,322 7 4 3 1971—Ja n 30,488 30,209 279 370 -91 5,976 5,917 59 40 19 1,387 1,392 -5 1 -6 Feb............. 29,880 29,679 201 328 -127 5,854 5,810 44 29 15 1,403 1,380 23 4 19 Mar............ 29,686 29,487 199 319 -120 5,664 5,703 -39 51 -90 1,375 1,384 -9 16 -25 Apr............. 29,885 29,745 140 148 -8 5,690 5,696 -6 15 -21 1,392 1,385 7 4 3 May»...... 30,408 30,113 295 330 -35 5,837 5,791 46 113 -67 1,438 1,422 16 13 3 Week ending— 1970—May 6... 28,587 28,237 350 774 -424 5,547 5,440 107 93 14 1,343 1,317 26 86 -60 13... 27,745 27,717 28 810 -782 5,293 5,378 -85 150 -235 1,269 1,292 -23 14 -37 20... 28,095 27,881 214 1,179 -965 5,515 5,433 82 332 -250 1,311 1,312 -1 -1 27... 27,331 27,287 44 933 -889 5,023 5,069 -46 86 -132 1,251 1,243 8 8 Nov. 4... 28,652 28,334 318 423 -105 5,571 5,475 96 11 85 1,298 1,291 7 12 -5 11... 28,725 28,443 282 445 -163 5,488 5,466 22 69 -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 .........89 -150 1,231 1,237 -6 18 -24 Dec. 2... 28,875 28,458 417 455 -38 5,540 5,391 149 89 60 1,277 1,270 7 18 -11 9... 28,718 28,582 136 290 -154 5,387 5,438 -51 -51 1,312 1,303 9 9 2 1 3 6 . . . . . . 2 2 9 9 , , 0 2 3 9 8 8 2 2 8 9 , , 9 0 1 8 8 8 2 1 1 2 0 0 3 32 9 5 9 - - 2 1 7 1 9 5 5 5 , , 6 5 7 7 1 4 5 5 , , 6 6 3 02 4 -2 3 8 7 5 3 9 9 - - 2 6 2 7 1 1, , 3 3 4 0 1 2 1 1 , , 3 3 2 3 7 0 -2 1 5 1 18 -4 1 3 1 30... 29,843 29,409 434 270 164 5,843 5,693 150 150 1,362 1,332 30 30 1971—Jan. 6... 30,611 30,035 576 407 169 6,064 5,902 162 71 91 1,396 1,411 -15 -15 13... 30,242 30,210 32 277 -245 5,850 5,910 -60 -60 1,402 1,384 18 18 20... 31,029 30,937 92 472 -380 6,165 6,198 -33 92 -125 1,424 1,464 -40 5 -45 21... 30,172 29,890 282 354 -72 5,752 5,760 -8 26 -34 1,373 1,335 38 38 Feb. 3... 29,959 29,722 237 283 -46 5,775 5,742 33 33 1,331 1,346 -15 — 15 10... 29,760 29,555 205 247 -42 5,685 5,755 -70 -70 1,379 1,367 12 12 17... 30,202 29,905 297 561 -264 6,118 6,043 75 117 -42 1,367 1,388 -21 18 -39 24... 29,916 29.599 317 250 67 5,770 5,732 38 38 1,417 1,386 31 31 Mar. 3... 29,542 29,372 170 258 -88 5,583 5,568 15 15 1,387 1,402 -15 — 15 10... 29,404 29,322 82 421 -339 5,595 5,657 -62 120 -182 1,355 1,367 -12 44 -56 17... 29,955 29,690 265 290 -25 5,853 5,830 23 46 -23 1,447 1,419 28 28 24... 29,482 29.414 68 333 -265 5,664 5,669 -5 59 -64 1,354 1,365 -11 14 -25 31... 29,940 29,564 376 257 119 5,847 5,714 133 133 1,390 1,379 11 14 -3 Apr. 7... 29,670 29,393 277 197 | 5,569 5,631 -62 -62 1,367 1,351 16 16 14... 29,625 29,417 208 150 5,748 5,652 96 17 79 1,346 1,367 -21 -21 21... 29,938 29,857 81 84 5,728 5,784 -56 -56 1,381 1,384 -3 -3 28... 30,157 30,109 48 176 5,625 5,682 -57 46 -103 1,430 1,418 12 18 -6 May 5... 30,780 30.415 365 174 191 5,907 5,817 90 46 44 1,440 1,449 -9 -9 12... 30,084 29,854 230 99 131 5,657 5,716 -59 39 -98 1,424 1,393 31 31 19... 30,362 30,260 102 306 5,986 5,967 19 143 -124 1,426 1,455 -29 41 -70 26»., 30,248 30,073 175 269 ■ 5,755 5,781 -26 100 -126 1,444 1,416 28 18 10 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 o BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) Other reserve city banks Country banks Reserves Reserves Period Borrow Borrow ings at Free ings at Free F.R. reserves F.R. reserves T h o e t ld al Required i 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. 10,978 10,948 30 477 -447 10,340 10,192 148 300 -152 ..............................1970—May 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 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 ..........................................Feb. 11,732 11,651 81 236 -155 10,915 10,749 166 16 150 11,754 11,789 -35 119 -154 11,049 10,875 174 10 164 11,913 11,837 76 137 -61 11,220 11,063 157 67 90 Week ending—- 11,210 11,145 65 382 -317 10,487 10,335 152 213 -61 .......................1970—May 6 10,882 10,913 -31 442 -473 10,301 10,134 167 204 -37 10,986 10,993 -7 553 -560 10,283 10,143 140 294 -154 10,748 10,793 -45 397 -442 10,309 10,182 127 450 -323 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 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 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 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 11,567 11,613 -46 245 -291 10,897 10,767 130 15 115 ...............................................24 11,752 11,694 58 221 -163 10,951 10,777 174 22 152 ...............................................31 11,758 11,634 124 184 -60 10,976 10,777 199 13 186 11,622 11,702 -80 127 -207 10,909 10,696 213 6 207 ...............................................14 11,807 11,826 -19 80 -99 11,022 10,863 159 4 155 11,910 11,955 -45 98 -143 11,192 11,054 138 14 124 ...............................................28 12,044 11,939 105 101 4 11,389 11,210 179 27 152 11,826 11,752 74 42 32 11,177 10,993 184 18 166 11,805 11,871 -66 71 -137 11,145 10,967 178 51 127 11,831 11,786 45 94 -49 11,218 11,090 128 71 ...............................................26*> 57 i 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 □ JUNE 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 Less— Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r v c e e e s s s 1 r a B o t B w a F o n i r n . k R g s . s F f i b e n u N d a t n n e e e d r r t k s a l S d u e r o f p i r c lu it s r P e e q a r u o v c g i f r e . e n d t c P ha u s r e s Sales t a w c t T r o t o a i - o n t w a n s a l s y 2 b c o P u h f a y u n s i r n e e s g t s o b S e a f l a l n n l i e n k e s g s t d L ea o t l a o e n r s s3 de f r B i r a n o o o l g w e r m s r s4 lo N a e n t s trans. reserves banks Total—46 banks 1971—Apr. 7. 185 8,213 -8,028 63.5 11,183 2,970 2,799 8,384 171 2,811 183 2,629 14. 93 17 9,940 -9,863 77.2 13,232 3,293 3,132 10,100 161 3,246 135 3,110 21. 37 1 9,343 -9,307 71.8 12,759 3,417 3,186 9,573 231 2,174 255 1,919 28 r -62 65 6,200 -6,328 48.8 9,817 3,617 3,083 6,735 534 1,543 275 1,268 May 5. 134 85 5,310 -5,261 40.3 9,082 3,772 3,331 5,752 442 1,642 295 1,347 12. 136 59 7,285 -7,209 56.1 11,371 4,086 3,234 8,137 852 1,360 504 856 19. -14 182 7,267 -7,463 56.3 11,515 4,249 3,316 8,199 933 1,401 477 924 26. 51 126 5,661 -5,737 44.3 9,406 3,745 2,850 6,556 895 1,264 284 980 8 in New York City 1971—Apr. 7. 11 3,566 -3,556 69.7 4,089 523 523 3,566 1,471 1,383 14. 97 17 4,444 -4,365 85.1 5,000 555 555 4,444 1,545 45 1,500 21. 38 4,752 -4,714 89.6 5,208 456 456 4,752 1,436 90 1,346 28. -34 42 2,760 -2,837 55.0 3,546 786 786 2,760 986 117 869 May 5. 53 46 2,248 -2,240 42.4 3,014 767 767 2,248 1,157 155 1,002 12. 39 3,747 -3,786 73.0 4,335 588 588 3,747 977 225 751 19. 134 4,408 -4,522 83.1 4,962 554 554 4,408 986 160 826 26. 92 3,080 -3,168 60.3 3,601 522 522 3,080 879 141 737 38 outside New York City 1971—Apr. 7........... 174 4,647 -4,473 59.3 7,094 2,447 2,276 4,817 171 1,340 95 1,246 14........... -4 5,495 -5,499 72.0 8,233 2,737 2,577 5,656 161 1,700 90 1,610 21........... -1 1 4,591 -4,593 59.7 7.552 2,961 2,730 4,822 231 738 165 573 28 r........ -28 23 3,440 -3,491 44.8 6,271 2,831 2,297 3,974 534 557 158 399 May 5........... 81 40 3,062 -3,021 38.8 6,068 3,006 2,564 3,504 442 485 140 345 12........... 135 20 3,538 -3,423 44.7 7,036 3,498 2,645 4,390 852 383 279 105 19........... -34 47 2,859 -2,940 37.7 6.553 3,694 2,762 3,791 933 415 316 98 26........... 48 35 2,581 -2,569 33.4 5,804 3,223 2,328 3,476 895 385 143 243 5 in City of Chicago 1971—Apr. 7........... 18 1,450 -1,432 116.6 1,846 396 335 1,511 112 112 14........... -1 1,712 -1,713 138.1 2,100 387 341 1,759 114 114 21........... -9 1,718 -1,726 137.3 2,118 400 350 1,768 92 92 28........... 6 1,404 -1,416 109.6 1,756 352 310 1,446 99 99 May 5........... -1 1,156 -1,156 87.6 1,632 476 431 1,201 65 65 12........... 24 1,491 -1,467 115.7 2,005 514 450 1,556 32 32 19........... -7 1,337 -1,385 104.3 1,916 580 523 1,393 48 48 26........... 12 1,154 -1,160 89.9 1,681 527 480 1,201 45 45 33 others 1971—Apr. 7........... 157 3,197 -3,040 48.2 5,248 2,051 1,941 3,307 110 1,228 95 1,134 14........... -3 3,783 -3,785 59.2 6,133 2,350 2,235 3,898 115 1,587 90 1,497 21........... 8 2,873 -2,867 44.5 5,434 2,561 2,380 3,054 181 646 165 481 28 r......... -34 2,036 -2,076 31.9 4,515 2,479 1,987 2,528 492 458 158 300 May 5........... 82 1,907 -1,865 28.9 4,436 2,529 2,133 2,303 397 421 140 280 12........... 112 2,047 -1,956 30.6 5,030 2,983 2,196 2,835 788 352 279 73 19........... -27 1,522 -1,555 24.0 4,637 3,115 2,239 2,398 876 367 316 51 26........... 36 1,428 -1,409 22.0 4,123 2,696 1,848 2,275 847 340 143 198 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
JUNE 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 9 t y e 7 1 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t io e us M Ra 1 a 9 t y e 7 1 3 o 1 n , Ef d fe a c t t e ive Pr r e a v t i e ous M Ra 1 a 9 t y e 7 1 3 o 1 n , Ef d fe a c t t e ive Pre ra v t io e us Boston............ 4 y4 Feb. 13, 1971 5V4 Feb. 13, 1971 5% 6% Feb. 13, 1971 N P C R h l e i e c w i v l h a e m Y l d a e o o n l n r d p k d h . . i . . a . . . . . . 4 4 4 4 V % % % a F F F F e e e e b b b b . . . .1 1 1 1 3 3 9 3 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 1 1 1 1 5 5 5 5 1 1 V V/ / 4 4 a a F F F F e e e e b b b b . . . . 1 1 1 1 9 3 3 3 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 1 1 1 1 5 5 5 5 V % V % 4 i 6 6 6 6 % V V V a a a F F F F e e e e b b b b . . . . 2 1 1 1 6 3 3 9 , , , , 1 1 1 1 9 9 9 9 7 7 7 7 1 1 1 1 C A h tl i a c n a t g a o . . . . . . . . . . . . . . . . . . . . . 4 4 V V a a F F e e b b . .1 1 3 3 , 1 1 9 97 7 1 1 5 51 V / a 4 F F e e b b . . 1 1 3 3, , 1 1 9 9 7 7 1 1 5 5 1 V /2 2 663V/a4 F F e e b b. . 1 1 3 3 , , 1 1 9 9 7 7 1 1 S M t. i n L n o e u a i p s o ... l . i . s .. . . . . 4 4V V a a F F e e b b. . 1 1 3 3 , , 1 1 9 9 7 7 1 1 5 51 1 / / 4 4 F Fe eb b. . 1 1 3 3 , , 1 1 9 9 7 7 1 1 5 5 V V i i 6 6 V 3/ a a F F e e b b . . 1 13 3 , , 1 1 9 9 7 7 1 1 Kansas City.. 4 y4 Feb. 13,1971 5% Feb. 13, 1971 51/2 63/a Feb. 13,1971 Dallas............. 43/4 Feb. 13, 1971 5% Feb. 13, 1971 51/2 6Va Feb. 13, 1971 San Francisco 4 y4 Feb. 13,1971 5 Va Feb. 13, 1971 5Vi 63/4 Feb. 13, 1971 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 t Vi Vi 1957—Aug. 9. 3 -3Vi 3 1965—Dec. 6..................... 4 -41/2 4i/i 23. 31/2 31/2 13..................... 41/2 4i/i 1946—Apr. 25............. t Vi-l l Nov. 15. 3 -3Vi 3 May 10........... 1 l Dec. 2. 3 3 1967—Apr. 7..................... 4 -41/2 4 14..................... 4 4 1948—Jan. 12............. 1 -11/a 1 Va 1958—Jan. 22. 234-3 3 Nov. 20..................... 4 -41/2 4Vi 1 9 Wa IVa 24. 234-3 234 27..................... 41/2 41/2 Aug. 2 1 3 3 . .. .. .. .. .. .. .. .. .. .. . . . . 1 Va IV -1 2 Vi I I V V 2 2 Mar. 1 7 3 . . 2 2 1 1 / / 4 4 - - 2 3 3/4 2 2 1 1 / 4 4 1968—Mar. 15..................... 41/2-5 41/i 21. 214 214 22..................... 5 5 1950—Aug. 21............ IV2-I Va 134 Apr. 18. 134-214 13/4 Apr. 19..................... 5 -51/2 51/2 1953—Jan. 2 2 1 3 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13/ 2 1 4 V -2 a 2 2 IV a S A M e u p a g y t . . 2 1 1 3 9 2 5 . . . . 1 13 3 2 I 4 4 V - -2 2a 2 2 1 1 3 34 4 D Au ec g . . 2 3 1 1 6 6 0 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1 1 / / 5 5 4 4 1 1 - - 5 5 / 4 i 1 1 / / 2 2 5 5 5 5 1 1 i i / / / / 4 2 i i Oct. 24. 2 -21/2 2 20..................... 51/2 51/2 1954— A M Fe p a b r y . . 2 1 1 1 5 1 4 5 . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 3 / / 2 ^ 1 I 2 V - V - - 1 2 1 a i 3 3 4 4 1 1 l I I V V V 3 34 4 a 2 i 1959— N M M o a a v r y . . 2 1 9 6 6 7 . . . . 2 3 V 2 3 i - - V 3 3 i 1/2 2 3 3 3 1 V /2 i 1 1 9 9 6 7 9 0 — —N Ap o r v . . 1 1 4 8 3 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 1 3 3 / 6 2 4 4 - - - 6 6 6 6 5 6 6 34 1955— N S A M A e o u p p a v g r y t . . . . 1 1 1 1 1 9 4 5 2 8 3 2 5 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 1 1 H 1 3 3 1 / 4 2 / 4 4 2 1 2 - - - 1 - - - 34 - 4 2 2 2 2 2 I 1 1 1 1 1 1 3 3 / 4 4 4 4 4 2 4 2 2 2 2 2 I I I i 1 V V V V 1 1 / 4 4 2 a a a i 1960— S A J J S u e u e u p p n n g t t e e . . . 1 1 1 1 1 1 9 4 2 3 0 8 2 1 . . . . . . . . 3 3 3 3 1 1 1 / 3 / 3 / 4 3 2 2 2 1 - 1 - - 3 - / / 2 4 4 4 2 1 /2 4 3 3 3 3 4 4 3 1 1 V / /2 2 i 1971—J D a e n c . . 2 1 1 1 1 4 8 2 9 5 1 1 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 5 5 1 1 i/ / 5 / 5 5 4 2 2 1 - - 1 3 - - - 5 5 / 4 4 5 5 2 5 1 1 3 3 i/ 4 4 4 4 i 5 5 5 5 5 5 5 5 1 1 1 1 1 3 3 / / / 4 4 4 4 4 2 2 23............. 21/2 21/2 1963—July 17. 3 -31/2 31/2 29..................... 5 5 1956—Apr. 13............. 21/2-3 234 26. 3*/2 31/2 Feb. 13..................... 434-5 5 2 0 234-3 234 19..................... 434 434 Aug. 24............. 234-3 3 1964—Nov. 24. 3 Vi-4 4 31............. 3 3 30. 4 4 In effect May 31, 1971......... 4M 4% t 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. Apr. 1-2, 5-6, 3.75; 13, 15, 21, 28, 4.125. May 3-6, 17, 4.125, in the following periods (rates in percentages): 1955—May 4-6, 1.65; 18-20, 4.375, 26-27, 4.50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 10 RESERVE AND MARGIN REQUIREMENTS □ JUNE 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> s deposits 2 deposits 2.4 (all classes of banks) Time depos its Reserve Country Other Effective date 1 Central Re Coun cla (a s l s l es Effective date i city banks banks S in a g v s time deposits re c s i e t r y ve s c e i r t v y e ba tr n y ks ba o nk f s) Under Over Under Over de i p ts os Under Over banks banks $5 mil $5 mil 55 mil $5 mil $5 mil $5 mil lion lion lion lion lion lion In effect Dec. 31, 1949. 22 18 12 1966—July 14,21. s16% 6 12 64 64 Sept. 8, 15. 1951—Jan. 11,16........ 23 19 13 Jan. 25, Feb. 1 24 20 14 1967—Mar. 2. 1953—July 9,1.......... 22 19 13 Mar. 16. i* 1954—June 24, 16........ 21 July 29, Aug. 1 20 18 12 1968—Jan. 11,18.... 16% 17 12 12% 1958—Feb. 27, Mar. 1 191/2 11% Mar. 20, Apr. 1 19 \VA 11 1969—Apr. 17............. 17 17% 121/2 13 Apr. 17................ 18 Vi Apr. 24............... 18 16y2 1970—Oct. 1................. 1960—Sept. 1............... 17% Nov. 24............... 12 In effect May 31,1971. 17 17% 12% 13 Dec. 1............... I61/2 1962—July 28............... (3) Present legal Oct. 25, Nov. 1 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. to 20 percent. Regulation D imposes a similar reserve requirement on bor MARGIN REQUIREMENTS (Per cent of market value) 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. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 Jan. 15 70 70 1958—Jan. 16 1958—Aug. 4 50 50 Aug. 5 Oct. 15 70 70 Oct. 16 1960—July 27 90 90 1960—July 28 1962—July 9 70 70 1962—July 10 1963—Nov. 5 50 50 1963—Nov. 6 1968—Mar. 10 70 70 1968—Mar. 11 June 7 70 50 70 June 8 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
JUNE 1971 o 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............ 4% 12 months or more.. 4 Other time deposits:2 Less than 12 months. 3*/2 Multiple maturity:3 30-89 days.......... 4 41/2 90 days-1 year.. 5 1 year to 2 years. 5 5 a 2 years and over. 5V4 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% 5% 9 6 0 m d o a n y t s h t s o t o 6 1 m 2 o m nt o h n s t . h . s . 2 3 1 1 / / 2 z 5% $1 2 0 0 y , e 0 a 0 r 0 s a a n n d d o o v v e e r r: . 53/4 Less than 90 days......... 1 30-59 days......... 5Vz (4) (30-89 days) 60-89 days......... 5Y4 (4) 90-179 days 5% 5% 6 6V4 180 days to 1 year, }eV4 1 1 year or more... m 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member 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*4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6l/i 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 s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l 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 Mar. 24, 1971 Four weeks ending Apr. 21, 1971 Gross demand—Total... 186,932 44,164 7,804 65,312 69,653 Gross demand—Total. 189,181 43,233 7,969 66,984 70,996 Interbank....................... 25,924 12,225 1,469 9,390 2,840 Interbank........................ 25,728 11,671 1,502 9,657 2,899 U.S. Govt....................... 5,082 932 242 1,917 1,991 U.S. Govt........................ 3,911 736 284 1,462 1,429 Other.............................. 155,927 31,007 6,093 54,005 64,822 159,542 30,825 6,184 55,866 66,668 Net demand 1................... 140,276 26,590 6,163 49,649 57,874 Net demand 1..................... 142,802 26,762 6,283 50,731 59,026 Time.................................... 191,559 22,868 6,711 70,865 91,116 193,497 23,003 6,835 71,119 92,540 Demand balances due Demand balances due from dom. banks......... 10,797 1,077 138 2,665 6,918 from dom. banks........... 11,043 1,116 166 2,791 6,970 Currency and coin........... 5,066 428 94 1,586 2,959 Currency and coin............. 5,073 446 96 1,586 2,944 Balances with F.R. Balances with F.R. Banks.............................. 24,530 5,246 1,292 10,042 7,950 24,721 5,277 1,275 10,149 8,020 Total reserves held........... 29,596 5,674 1,386 11,628 10,909 Total reserves held............ 29,794 5,723 1,371 11,735 10,964 Required......................... 29,450 5,681 1,389 11,641 10,739 29,558 5,695 1,370 11,714 10,778 Excess............................. 146 -7 -3 -13 170 236 28 1 21 186 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 a JUNE 1971 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1971 1971 1970 May 26 May 19 May 12 May 5 Apr. 28 May 31 Apr. 30 May 31 Assets Gold certificate account..................................................... 10,075 10,075 10,075 10,475 10,475 10,075 10,475 11,045 Special Drawing Rights certificate account................. 400 400 400 400 400 400 400 400 276 270 264 261 253 282 264 210 Discounts and advances: Member bank borrowings............................................. 1,274 985 25 802 718 1,051 81 1,361 Other.................................................................................. 90 Acceptances: Bought outright............................................................... 62 59 58 58 53 64 56 42 Held under repurchase agreements............................. 40 89 81 35 48 Federal agency obligations—Held under repurchase 39 97 137 8 U.S. Govt, securities: Bought outright: Bills................................................................................ 27,237 27,011 26,521 26,643 26,259 27,237 26,321 22,211 Notes.............................................................................. 34,307 34,299 34,180 34,180 34,180 34,307 34,180 32,233 3,220 3,220 3,220 3,220 3,220 3,220 3,220 2,863 Total bought outright..................................................... i 64,764 i 64,530 i 63,921 i 64,043 i 63,659 i 64,764 63,721 57,307 Held under repurchase agreements............................. 168 521 264 1,136 353 Total U.S. Govt, securities................................................ 64,932 65,051 64,185 65,179 64,012 64,764 63,721 57,307 Total loans and securities................................................. 66,347 66,281 64,268 66,257 64,826 65,927 63,858 58,800 9,929 11,212 10,527 10,910 11,341 9,188 9,990 8,935 Bank premises...................................................................... 139 140 139 136 136 139 136 118 Other assets: Denominated in foreign currencies............................. 94 94 94 34 34 94 34 510 IMF gold deposited 2..................................................... 148 148 148 148 148 148 148 210 All other............................................................................ 490 444 943 898 879 546 851 346 Total assets............................................................................ 87,898 89,064 86,858 89,519 88,492 86,799 86,156 80,574 Liabilities F.R. notes.............................................................................. 50,517 50,466 50,539 50,200 49,907 50,535 49,778 47,096 Deposits: Member bank reserves................................................... 25,985 25,878 23,988 27,559 25,827 25,494 24,752 23,041 U S. Treasurer—General account............................... 887 1,224 1,112 493 1,401 805 1,322 1,198 Foreign............................................................................... 156 195 161 148 133 208 162 128 Other: IMF gold deposit 2..................................................... 148 148 148 148 148 148 148 210 All other....................................................................... 523 498 539 537 535 528 582 578 Total deposits....................................................................... 27,699 27,943 25,948 28,885 28,044 27,183 26,966 25,155 Deferred availability cash items....................................... 7,441 8,458 8,222 8,121 8,346 6,779 7,166 6,052 Other liabilities and accrued dividends........................... 542 559 532 570 510 558 544 607 Total liabilities.................................................................... 86,199 87,426 85,241 87,776 86,807 85,055 84,454 78,910 Capital accounts Capital paid in..................................................................... 723 723 722 721 721 724 722 684 Surplus................................................................................... 702 702 702 702 702 702 702 669 Other capital accounts........................................................ 274 213 193 320 262 318 278 311 Total liabilities and capital accounts.............................. 87,898 89,064 86,858 89,519 88,492 86,799 86,156 80,574 Contingent liability on acceptances purchased for foreign correspondents................................................... 242 243 244 237 235 253 236 231 Marketable U.S. Govt, securities held in custody for foreign and international accounts 3............................ 19,531 18,905 18,514 17,405 17,080 19,382 16,954 9,754 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)....................... 53,727 53,708 53,559 53,396 53,446 53,802 53,453 49,984 Collateral held against notes outstanding: Gold certificate account................................................ 3,250 3,250 3,250 3,250 3,250 3,250 3,250 3,327 U.S. Govt, securities....................................................... 52,025 51,975 51,975 51,955 51,955 52,025 51,955 48,025 Total collateral..................................................................... 55,275 55,225 55,225 55,205 55,205 55,275 55,205 51,352 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
JUNE 1971 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON MAY 31, 1971 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e il i l a a C 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 10,075 461 2,555 525 910 858 535 1,625 359 191 421 619 1,016 Special Drawing Rights certif. acct---- 400 23 93 23 33 36 22 70 15 7 15 14 49 950 112 225 48 48 66 275 29 16 15 27 23 66 282 12 25 10 28 30 36 36 16 9 26 18 36 Discounts and advances: Secured by U.S. Govt, securities.... 477 126 133 34 2 63 43 34 * 3 6 33 574 50 293 100 30 88 5 8 Acceptances: 64 64 Held under repurchase agreements.. 48 48 Federal agency obligations—Held U.S. Govt, securities: 164,764 3,162 16,392 3,419 4,957 4,769 3,220 10,683 2,408 1,256 2,508 2,946 9,044 65,927 3,338 16,930 3,553 4,959 4,832 3,293 10,805 2,408 1,256 2,511 2,957 9,085 Cash items in process of collection... 12,649 628 1,996 628 818 870 1,517 2,060 593 458 799 1,223 1,059 Bank premises.......................................... 139 2 8 3 16 13 17 17 13 15 18 9 8 Other assets: Denominated in foreign currencies.. 94 4 2 25 5 9 5 6 14 3 2 4 5 12 TlV>f T7 rrr\1H 3 148 148 All other............................................... 546 39 120 25 37 38 52 75 17 10 48 21 64 Total assets............................................... 91,210 4,619 22,125 4,820 6,858 6,748 5,753 14,731 3,440 1,963 3,869 4,889 11,395 Liabilities F R notes................................................. 51,485 2,873 12,284 2,997 4,164 4,575 2,538 9,015 1,982 893 1,927 1,991 6,246 Deposits: Member bank reserves....................... 25,494 1,014 6,966 1,128 1,738 1,293 1,541 3,666 883 626 1,143 1,612 3,884 U.S. Treasurer—General account.. 805 35 60 61 49 54 102 33 24 27 63 185 112 Foreign.................................................. 208 7 4 93 8 14 8 10 23 5 4 7 9 20 Other: IM F <r/YlH 3 148 148 All other .................................. 949 * 483 2 8 150 4 1 1 2 278 20 Total deposits........................................... 27,604 1,056 7,750 1,199 1,801 1,363 1,803 3,726 913 658 1,215 2,084 4,036 Deferred availability cash items.......... 9,819 583 1,507 508 699 676 1,246 1,640 468 362 620 698 812 Other liabilities and accrued dividends 558 27 137 28 42 39 27 89 19 12 36 24 78 Total liabilities......................................... 89,466 4,539 21,678 4,732 6,706 6,653 5,614 14,470 3,382 1,925 3,798 4,797 11,172 Capital accounts Capital paid in......................................... 724 34 188 37 66 38 49 108 24 17 31 40 92 Surplus....................................................... 702 33 185 36 63 36 47 105 24 16 30 39 88 Other capital accounts.......................... 318 13 74 15 23 21 43 48 10 5 10 13 43 Total liabilities and capital accounts.. 91,210 4,619 22,125 4,820 6,858 6,748 5,753 14,731 3,440 1,963 3,869 4,889 11,395 Contingent liability on acceptances purchased for foreign correspond- 253 12 5 66 13 23 13 17 38 8 6 11 14 32 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to 53,802 3,034 12,991 3,092 4,325 4,701 2,726 9,283 2,066 930 1,996 2,137 Collateral held against notes out standing: Gold certificate account.................... 3,250 250 500 300 510 530 1,000 155 5 U.S. Govt, securities.......................... 52,025 2,840 12,600 2,900 3,900 4,250 2,900 8,450 1,980 950 2,075 2,180 Total collateral........................................ 55,275 3,090 13,100 3,200 4,410 4,780 2,900 9,450 2,135 950 2,075 2,185 1 See note 6 on p. A-5. 5 After deducting $187 million participations of other F.R. Banks. 2 After deducting $69 million participations of other F.R. Banks. 3 See note 1 (b) to table at top of p. A-75. Note.—Some figures for cash items in process of collection and for 4 After deducting $115 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 □ JUNE 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 i d h t o e u i r f m r ts i p , ty c G h p r a u o s r s e s s G sa r l o e s s s m E s a h x t i u c f r h ts i . ty tions 1970—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 -6,712 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 Mar. 3,142 2,523 240 2,600 2,523 240 263 Apr. 2,229 1,298 50 2,033 1,298 50 119 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 p h 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 p h 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 i f h t t a y s . c G p h r u a 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 s e , change1 1970—Apr___ 3,685 3,,338 723 34 6 49 811 May. . . 16 -1,692 953 i;,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___ 61 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___ 189 -360 121 4,183 4!,183 679 -5 673 Mar.... 205 74 6,561c 5,,242 1,698 186 85 1,968 Apr.. . . 62 16 5,085 6,,404 -439 -186 -85 -707 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st o e u rl n in d g s s A c u h s il t l r 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 r r m k 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 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—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 * 14 280 180 * * 96 1 * 3 Sept.............. 680 580 * * 96 1 * 3 Oct............. 408 306 * * 97 I * 4 Nov............ 265 161 * * 98 1 * 4 Dec.............. 257 154 * * 98 1 * 4 1971—Jan............... 186 80 1 * 99 1 5 Feb............... 107 * 1 * 100 1 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 May 26 May 19 May 12 May 5 Apr. 28 May 31 Apr. 30 May 31 Discounts and advances—Total. 1,274 985 25 802 716 1,051 81 1,454 Within 15 days........................... 1,273 984 24 800 715 1,048 79 1,352 16 days to 90 days..................... 1 1 1 2 1 3 2 102 91 days to 1 year....................... Acceptances—Total.. 102 148 58 139 111 56 42 Within 15 days.... 54 101 12 95 47 62 12 12 16 days to 90 days. 48 47 46 44 41 49 44 30 91 days to 1 year.. U.S. Government securities—Total. 64,971 65,148 64,185 65,316 64,020 64,764 63,721 57,307 Within 15 days*................................ 3,904 4,509 5,693 6,712 4,549 1,944 4,308 1,623 16 days to 90 days............................ 12,736 12,333 12,153 12,097 13,457 13,760 12,579 10,532 91 days to 1 year.............................. 17,910 17,893 15,581 15,749 15,256 18,639 16,076 14,006 Over 1 year to 5 years..................... 23,645 23,641 23,736 23,736 23,736 23,645 23,736 25,249 Over 5 years to 10 years................. 5,896 5,892 6,142 6,142 6,142 5,896 6,142 5,277 Over 10 years.................................... 880 880 880 880 880 880 880 620 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S th A e ’s rs2 T S o N M ( t e a . x Y S l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 1970—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................................. 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.................................. 11,535.4 5,477.4 2,550.4 6,058.0 3,507.6 82.2 191.3 80.1 54.2 43.9 Mar................................. 11,443.2 5,309.7 2,522.6 r6,133.5 r3,610.9 79.6 183.5 76.8 53.4 44.1 Apr.................................. 11,679.1 5,356.8 2,617.0 6,322.3 3,705.3 80.6 185.6 79.3 54.5 44.7 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 □ JUNE 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 1919, 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—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 Mar............ 56,304 38,785 6,303 2,200 136 3,011 8,835 18,300 17,519 4,892 12,160 212 248 3 4 Apr............. 56,592 38,917 6,360 2,206 136 3,001 8,826 18,388 17,675 4,917 12,294 210 246 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. 1971 1970 Kind of currency Apr. 30, against Treasury F.R. Banks 1971 gold and cash Banks and silver and Agents Apr. Mar. Apr. certificates Agents 30 31 30 Gold........................................................................................ 10,732 (10,475) 2 257 Gold certificates.................................................................... (10,475) 310,474 1 Federal Reserve notes......................................................... 53,453 162 3,673 49,618 49,389 46,386 Treasury currency—Total.................................................. 7,329 91 264 6,974 6,914 6,648 Standard silver dollars.................................................... 485 3 482 482 482 Fractional coin................................................................. 6,225 83 263 5,878 5,821 5,572 United States notes......................................................... 323 5 317 315 294 In process of retirement 4.............................................. 297 297 297 301 Total—Apr. 30, 1971........................................................ 571,514 (10,475) 509 10,474 3,938 56,592 Mar. 31, 1971......................................................... 5 71,000 (10,464) 483 10,463 3,751 56,304 Apr. 30, 1970......................................................... 5 67,544 (11,045) 546 11,044 2,920 53,034 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 $148 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
JUNE 1971 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week M2 Mz Mi Mz Mi (Mi plus time (M2 plus deposits Mi (Mi plus time (M2 plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other tahn institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 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—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................................... 214.6 419.0 634.6 221.1 424.1 640.0 1971—Jan................................... 214.8 423.0 642.1 221.3 428.9 648.4 Feb................................... 217.3 430.8 654.0 215.5 428.4 651.3 Mar.................................. 219.4 437.6 664.8 217.4 436.3 663.8 Apr................................... 221.1 442.0 673.7 222.2 444.3 676.1 Mayp............................... 224.1 447.4 682.5 219.9 444.4 679.1 Week ending— 1971—Apr. 28......................... 219.0 440.3 219.2 441.7 May 5......................... 220.6 442.9 220.0 443.1 12......................... 223.1 446.1 220.4 444.5 19......................... 224.6 448.0 219.2 443.7 26......................... 225.4 449.4 218.3 443.3 June 2.......................... 225.4 450.4 221.7 447.4 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Month Non Non Govt, or bank bank depos week Cur De Time and savings thrift Cur De Time and savings thrift its 5 rency mand deposits institu rency mand deposits institu depos tions 4 depos tions 4 its its 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—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 27.1 208.2 235.3 219.2 49.1 172.1 27.0 207.6 234.5 219.6 6.6 Feb...................... 49.6 167.7 27.4 213.5 240.9 223.2 49.2 166.3 27.4 212.9 240.3 223.0 8.3 Mar..................... 50.0 169.4 27.8 218.3 246.1 227.2 49.5 167.8 28.0 218.9 246.9 227.5 5.4 Apr...................... 50.5 170.5 27.3 221.0 248.3 231.6 50.1 172.1 27.1 222.1 249.2 231.9 5.5 May?.................. 50.9 173.2 28.0 223.4 251.3 235.0 50.5 169.4 27.6 224.5 252.1 234.8 7.8 Week ending— 1971—Apr. 28............. 50.6 168.4 27.4 221.3 248.7 49.6 169.6 27.2 222.4 249.6 6.5 May 5............. 50.7 169.9 27.6 222.3 249.9 50.2 169.7 27.1 223.2 250.3 8.7 12............. 50.9 172.3 27.6 223.0 250.6 50.7 169.7 27.2 224.1 251.3 8.2 19............. 50.9 173.7 27.9 223.3 251.2 50.5 168.7 27.6 224.5 252.1 8.2 26............. 50.9 174.6 28.3 224.0 252.4 50.2 168.1 28.1 224.9 253.1 7.2 June 2............. 50.9 174.4 28.2 225.1 253.3 50.7 170.9 28.0 225.8 253.7 6.4 1 Includes, in addition to currency and demand deposits, savings de Note.—For description of revised series and for back data, see Dec. 1970 posits, time deposits open account, and time certificates of deposits other Bulletin, pp. 887-909. negotiable time certificates of deposit issued in denominations of $100,000 Average of daily figures. Money stock consists of (1) demand deposits or more by large weekly reporting commercial banks. at all commercial banks other than those due to domestic commercial 2 Includes M2, plus the average of the beginning and end of month banks and the U.S. Govt., less cash items in process of collection and F.R. deposits of mutual savings banks and savings and loan shares. float; (2) foreign demand balances at F.R. Banks; and (3) currency outside 3 Negotiable time certificates of deposit issued in denominations of the Treasury, F.R. Banks, and vaults of all commercial banks. Time de $100,000 or more by large weekly reporting commercial banks. posits adjusted are time deposits at all commercial banks other than those 4 Average of the beginning and end-of-month deposits of mutual savings due to domestic commercial banks and the U.S. Govt. banks and savings and loan shares. 5 At all commercial banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 18 BANK RESERVES; BANK CREDIT □ JUNE 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 deposits plus nondeposit S.A. N.S.A. items 3 Period Total Non Demand Demand borrowed Required Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1967—De c 25.94 25.68 25.60 273.5 149.9 118.9 4.6 276.2 148.1 123.6 4.5 1968—De c 27.96 27.22 27.61 298.2 165.8 128.2 4.2 301.2 163.8 133.3 4.1 1969—De c 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—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............... 30.75 30.40 30.53 333.2 191.7 136.7 4.8 332.2 192.3 135.4 4.5 340.2 339.2 Apr............... 30.82 30.64 30.61 336.6 193.3 137.9 5.4 337.3 193.6 139.0 4.7 341.7 342.3 MayP........... 31.25 30.96 31.00 339.8 195.5 140.2 4.1 338.5 195.8 136.1 6.6 343.9 342.6 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 Date Securities Securities Total 1,2 Loans1, 2 Total i,2 Loans1, 2 U.S. Other 2 U.S. Other2 Govt. Govt. 1960—Dec. 31..................................................................... 194.5 113.8 59.8 20.8 198.5 116.7 61.0 20.9 1961-—Dec. 30..................................................................... 209.6 120.4 65.3 23.9 214.4 123.9 66.6 23.9 1962--Dec. 31..................................................................... 227.9 134.0 64.6 29.2 233.6 137.9 66.4 29.3 1963--Dec. 31..................................................................... 246.2 149.6 61.7 35.0 252.4 153.9 63.4 35.1 1964—Dec. 31..................................................................... 267.2 167.7 60.7 38.7 273.9 172.1 63.0 38.8 1965--Dec. 31..................................................................... 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 1966—Dec. 31..................................................................... 310.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967--Dec. 30..................................................................... 346.5 225.4 59.7 61.4 354.5 230.5 62.5 61.5 1968--Dec. 31..................................................................... 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969--Dec. 31 3.................................................................... 401.3 278.1 51.9 71.3 410.5 284.5 54.7 71.3 1970—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 i 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. 28..................................................................... 424.4 287.3 56.3 80.8 424.0 285.9 57.2 81.0 Nov. 25..................................................................... 428.2 288.4 56.7 83.1 427.7 286.9 58.3 82.5 Dec. 31..................................................................... 435.1 290.5 58.5 86.0 445.1 297.2 61.7 86.1 1971--Jan. 27..................................................................... 438.9 292.0 58.7 88.2 438.0 289.3 61.5 87.1 Feb. 24..................................................................... 444.6 295.2 59.9 89.6 440.9 290.6 61.4 88.9 Mar. 31..................................................................... 448.6 295.2 61.4 92.0 446.4 293.3 61.6 91.5 Apr. 28 p................................................................... 448.7 294.8 60.2 93.6 448.8 294.6 60.1 94.1 May 26p................................................................... 453.0 297.9 60.2 94.9 450.9 297.2 58.9 94.8 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 o BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Date c c s G S e a a t r D o t n o e t c d l i R s d k f i 1 T r s c o e r u i t u n u n a e r r g a n t c y 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 c d s n u e e r r k r v i a s t e l ies Other4 r O s i e t t i c h e u e s r 3 c T l n a i i a n a p e t o n i t b e i t e — t d t a i s a l l l , c d u T e r a p o r n o e t d a s n i l c ts y C co m a a n a u n p i c e n s 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—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 7.100 554.500 341.400 119,700 60.400 59.300 93.400 573.100 505,500 67.600 Nov. 25. 11.500 7.100 559.300 341,600 122,600 61,500 61.100 95,100 578,000 510,400 67.600 Dec. 31. 11,132 7,149 580,899 354,447 127,207 64,814 62,142 251 99,245 599,180 535,157 64,020 1971—Jan. 27. 11,100 7.200 574.100 346.300 127.000 64,700 62,000 300 100,800 592.400 527,200 65.200 Feb. 24. 11,100 7.200 577.500 347.300 127,200 64.800 61,700 700 103,000 595.800 529.600 66.300 M Ap a r r . . 2 31 8 p p 1 1 1 1 , , 1 1 0 0 0 0 7 7 . . 3 3 0 0 0 0 5 5 8 8 6 8 , . 7 8 0 00 0 3 3 5 5 0 0, . 5 10 0 0 0 1 12 2 9 8, , 3 9 0 0 0 0 6 6 5 3 . . 0 4 0 00 0 6 6 4 4 , , 2 0 0 0 0 0 9 8 0 0 0 0 1 1 0 0 9 6 , , 9 6 0 0 0 0 6 6 0 0 5 7 . . 1 2 0 00 0 5 5 3 4 9 3 . . 1 8 0 0 0 0 6 6 6 3. .0 3 0 00 0 May 26p 10,700 7,400 593.300 354.100 128.100 62.200 64,900 900 111,100 611.400 549.100 62.300 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) Seasonally adjusted 6 Not seasonally adjusted Time U.S. Government Date Total o b r u C a e t n u n s c i r k d y s e d ju m e D p a s a t o d e e n s d d it 7 s Total o b r u C a e t n u n s r i c k d y s e d ju e m D p a s a t o d e n e s d d it 7 s Total b m C a e n o r k m c s ia l 2 b M sa a v u n i t k n u s g a s l 8 S P t a S o e v y m s i s t n a 4 g l s e n F i e g o t n r 9 , T h c i u r n o a e r g l s a d y h s s s b c a a o a A v n m n 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—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.., 201,800 47.400 154.400 202.500 47.300 155.300 292.100 221.900 70.200 2,600 500 6,600 1.300 Nov. 25.. 202.300 47.600 154,700 205.500 48.900 156,600 294.900 224.400 70.500 2.500 500 6,200 800 Dec. 31... 209,400 47.800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971—Jan. 27... 203.300 48.300 155.000 205,900 47,600 158.300 307,600 235.000 72.600 2.500 500 9.500 1,200 Feb. 24... 204.900 48.500 156.400 203,800 47.900 155.900 313.900 240.400 73.500 2.500 500 7.500 1.400 Mar. 31 , 214.100 49.300 164,800 208,200 48,800 159,400 322.100 247.000 75,100 2.500 500 5,000 900 A M p a r y . 2 2 6 8 p p . . . , 2 2 0 1 7 2 . . 1 1 0 0 0 0 4 4 9 8 . , 5 90 0 0 0 1 16 5 2 8 , , 6 20 0 0 0 2 2 0 0 7 9 , , 2 6 0 0 0 0 4 4 8 9 , . 5 4 0 0 0 0 1 1 5 6 8 0 , . 7 2 0 0 0 0 3 3 2 2 3 7 , . 8 4 0 0 0 0 2 24 5 7 0 . , 9 8 0 0 0 0 7 76 5 . . 6 9 0 0 0 0 2 2 . . 3 3 0 00 0 5 50 0 0 0 8 8. , 5 6 0 0 0 0 1.4 9 0 0 0 0 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 (!) 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 □ JUNE 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 All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,S )82 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,( )65 105,921 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—May 27... 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... 439,590 301,460 57,180 80,950 78,310 539,190 440,030 24,780 1.740 6,250 185,030 222,230 20,200 42,080 13,684 Nov. 25. .. 442,970 302,160 58,280 82,530 82,400 546,950 446,170 24,680 1.740 5,840 189,080 224,830 21,680 42,270 13,687 Dec. 31... 461,194 313,334 61,742 86,118 93,643 576,242 480,940 30,608 1,975 7,938 209,335 231,084 19,375 42,958 13,686 1971—Jan. 27... 454,250 305,600 61,520 87,130 83,860 559,200 462,730 25,360 2,030 9,250 190,810 235,280 20.500 42,730 13,692 Feb. 24... 458,040 307,740 61,430 88,870 82,450 561,810 463,950 25,850 1.990 7,060 188,180 240,870 21.500 43,050 13,700 Mar. 31 p. . 463,500 310.380 61,620 91,500 94,350 580,930 483,470 30,640 1.990 4,520 198,860 247,460 22,130 43,530 13,713 Apr. 28^.. 466,450 312,280 60,060 94,110 88,670 577,590 479,150 26,430 2,020 8,150 194,180 248,370 24,070 43,740 13.717 May 26^. . 468,070 314.380 58,900 94,790 84,510 575,700 477,390 24,390 2,080 7,900 191,590 251,430 23,390 43,910 13.717 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—May 27... 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. 31... 365,940 253,936 45,399 66,604 81,500 465,644 384,596 29,142 1,733 6,460 168,032 179,229 18,578 34,100 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 1150,712 186,766 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 5,751 Apr. 28... 368,478 252,001 43,690 72,787 78,152 465,602 382,149 25,278 1,776 6,957 155,728 192,410 22,983 34,799 5.747 May 26?.. 369,202 253,533 42,601 73,068 73,880 462,630 379,755 23,230 2,080 6,662 153,165 194,860 22,237 34,944 5.747 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 i95 2,120 37 1947—Dec. 31... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31... 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 31 6. 60,333 48,305 5,048 6,980 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—May 27... 57,288 44,819 4,981 7,488 22,007 84,604 57,147 9,356 280 882 31,742 14,887 5,821 6,335 12 June 30... 57,088 44,881 4,413 7,795 23,070 85,666 60,615 11,148 321 1,236 32,590 15,320 4,057 6,374 12 July 29... 58,720 45,917 5,142 7,661 18,322 82,356 57,063 9,322 592 1,382 28,927 16,840 4,855 6,340 12 Aug. 26... 58,468 45,208 5,458 7,802 20,982 84,893 58,959 9,668 729 1,214 29,943 17,405 5,243 6,405 12 Sept. 30... 59,484 46,265 5,144 8,075 23,057 88,026 64,019 12,161 719 1,355 31,072 18,712 4,184 6,439 12 Oct. 28... 59,215 45,990 5,337 7,888 19,175 83,785 59,297 10,738 776 658 28,024 19,101 5,038 6,385 12 Nov. 25... 59,657 45,717 5,463 8,477 20,151 85,368 59,654 10,276 814 749 28,552 19,263 6,224 6,424 12 Dec. 31... 62,347 47,161 6,009 9,177 21,715 89,384 67,186 12,508 956 1,039 32,235 20,448 4,500 6,486 12 1971—Jan. 27... 60,658 45,791 6,011 8,856 21,274 87,437 64,712 11,270 950 1,985 29,761 20,746 4,997 6,449 12 Feb. 24... 60,791 46,610 5,378 8,803 20,393 86,749 63,848 11,367 919 879 29,352 21,331 5,855 6,510 12 Mar. 31... 59,912 45,457 5,683 8,772 27,111 93,161 71,345 14,672 846 573 33,114 22,140 5,741 6,723 12 Apr. 28... 60,115 45,741 5,316 9,058 23,718 89,486 67,750 12,261 920 1,392 30,793 22,384 6,285 6,743 12 May 26... 59,029 45,441 5,007 8,581 19,816 84,885 63,973 10,254 846 1,388 28,552 22,933 6,072 6,797 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ 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 assets3 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—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 1,540 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. 31............. 15,745 11,214 2,105 2,427 3,074 19,892 15,041 1,930 49 282 6,663 6,117 1,851 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 11,000 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 Apr. 28............. 15,726 11,051 1,940 2,735 3,159 19,874 15,048 1,449 123 414 6,415 6,647 2,304 1,622 9 May 26............. 15,853 11,293 1,677 2,883 3,011 19,741 14,951 1,300 143 419 6,181 7,051 2,180 1,616 9 Other reserve city: 7,8 1941—Dec. 31............. 15,347 7,105 6,467 1,776 8,518 24,430 22,313 4,356 104 491 12,557 4,806 1,967 351 1945—Dec. 31............. 40,108 8,514 29,552 2,042 11,286 51,898 49,085 6,418 30 8,221 24,655 9,760 2 2,566 359 1947—Dec. 31............. 36,040 13,449 20,196 2,396 13,066 49,659 46,467 5,627 22 405 28,990 11,423 1 2,844 353 1966—Dec. 31............. 95,831 69,464 13,040 13,326 24,228 123,863 108,804 8,593 233 1,633 49,004 49,341 1,952 9,471 169 1967—Dec. 30............. 105,724 73,571 14,667 17,487 26,867 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 163 1968—Dec. 31............. 119,006 83,634 15,036 20,337 28,136 151,957 132,305 10,181 307 1,884 57,449 62,484 4,239 10,684 161 1969—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—May 27............. 119,002 88,033 11,287 19,682 24,393 149,816 116,945 8,213 160 1,945 49,990 56,637 11,025 11,780 157 June 30............. 121,213 90,152 11,372 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 24,422 151,834 120,708 8,374 409 2,349 50,046 59,530 9,777 11,885 156 123,418 91,106 12,341 19,971 25,008 154,765 123,746 8,544 552 3,049 50,085 61,516 9,485 11,934 156 Sept. 30............. 125,582 91,955 12,859 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 13,299 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. 31............. 133,718 96,158 14,700 22,860 31,263 171,733 140,518 11,317 592 2,547 59,328 66,734 10,391 12,221 156 1971—Jan. 27............. 130,725 92,805 14,490 23,430 26,930 164,214 133,018 8,875 675 3,141 52,463 67,864 10,413 12,234 156 Feb. 24............. 131,751 92,932 14,498 24,321 26,701 164,992 133,375 9,169 686 2,262 52,063 69,195 10,014 12,321 156 Mar. 31............. 134,204 94,302 14,636 25,266 29,361 170,513 138,409 9,791 692 1,592 55,594 70,740 11,044 12,474 156 Apr. 28............. 134,119 94,416 13,830 25,873 28,581 169,509 136,752 9,688 652 3,353 53,562 69,497 11,889 12,502 156 May 26............. 134,264 95,042 13,409 25,813 28,193 169,451 137,167 9,723 714 3,018 53,519 70,193 11,325 12,561 156 Country member: 7, 8 1941—Dec. 31............. 12,518 5,890 4,377 2,250 6,402 19,466 17,415 792 30 225 10,109 6,258 4 1,982 6,219 1945—Dec. 31............. 35,002 5,596 26,999 2,408 10,632 46,059 43,418 1,207 17 5,465 24,235 12,494 11 2,525 6,476 1947—Dec. 31............. 36,324 10,199 22,857 3,268 10,778 47,553 44,443 1,056 17 432 28,378 14,560 23 2,934 6,519 1966—Dec. 31............. 109,518 68,641 22,419 18,458 19,004 131,338 117,749 2,392 69 1,474 56,672 57,144 308 10,309 5,958 1967—Dec. 30............. 122,511 74,995 24,689 22,826 20,334 146,052 131,156 2,766 96 1,564 61,161 65,569 552 11,005 5,886 1968—Dec. 31............. 134,759 83,397 24,998 26,364 22,664 161,122 144,682 2,839 111 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 316.......... 140,715 92,147 21,278 27,291 23,928 169,078 148,007 3,152 84 1,671 67,930 75,170 1,820 12,766 5,691 1970—May 27............. 140,921 92,612 20,375 27,934 20,652 166,453 143,231 2,349 86 1,855 60,730 78,211 2,670 13,068 5,638 June 30............. 142,603 94,081 19,999 28,522 22,741 170,129 147,960 2,763 81 2,259 63,907 78,951 2,164 13,377 5,626 July 29............. 143,314 94,149 20,455 28,710 20,667 168,633 146,110 2,438 84 1,993 61,266 80,329 2,354 13,280 5,618 Aug. 26............. 144,654 94,638 20,710 29,306 20,868 170,429 147,449 2,411 84 2,449 61,243 81,252 2,202 13,334 5,608 Sept. 30............. 146,519 95,398 21,030 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 2,572 81 2,123 62,818 83,468 2,350 13,499 5,604 Nov. 25............. 149,070 96,503 21,570 30,997 22,516 176,920 153,125 2,652 81 1,879 64,353 84,160 2,273 13,572 5,596 Dec. 31............. 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 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 22,119 181,664 158,145 2,693 81 2,337 63,287 89,747 2,446 13,764 5,577 Mar. 31............. 156,551 99,673 22,695 34,183 23,925 186,072 162,273 2,862 81 1,393 65,677 92,260 2,361 13,826 5,574 Apr. 28............. 158,518 100,793 22,604 35,121 22,694 186,733 162,599 2,736 81 2,145 64,958 92,679 2,505 13,932 5,570 May 26^........... 160,056 101,757 22,508 35,791 22,860 188,553 163,664 2,802 135 2,296 64,913 93,518 2,660 13,970 5,570 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 22 COMMERCIAL BANKS □ JUNE 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia Bor Total Num and FDIC assets3 bilities row capital ber insurance Total Loans and Total3 Demand ings ac of 1, 2 U.S. Other capital De Time counts banks Treas 2 ac mand Time l ury counts4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,( 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,! 383 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 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 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 Dec. 31.. 458,919 312,006 61,438 85,475 92,708 572,682 479,174 30,233 1,874 7,898 208,037 231,132 19,149 42,427 13,502 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 Dec. 31.. 271,760 187,554 34,203 50,004 56,028 340,764 283,663 18,051 982 4,740 122,298 137,592 13,100 24,868 4,620 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 Dec. 31.. 94,760 66,963 11,196 16,600 25,472 125,460 101,512 11,091 750 1,720 45,734 42,218 5,478 9,232 1,147 Nonmember: 1941—Dec. 31.. 5,776 3,241 1,509 1,025 2,668 8,708 7,702 129 53 4,162 3,360 6 959 6,810 1945—Dec. 31.. 14,639 2,992 10,584 1,063 4,448 19,256 18,119 244 1,560 10,635 5,680 7 1,083 6,416 1947—Dec. 31.. 16,444 4,958 10,039 1,448 4,083 20,691 19,340 262 4 149 12,366 6,558 7 1,271 6,478 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 94 691 34,615 40,060 217 6,482 7,504 1969—June 306. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 34,070 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1970—June 30.. 84,875 54,149 13,924 16,802 9,346 96,794 84,865 894 137 1,083 35,837 46,913 708 7,975 7,675 Dec. 31.. 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438 40,005 51,322 571 8,326 7,735 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 o 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— F C R la S a i s n n s m i s d f u e ic r F m a a D t b n i I e o c C r e n s h b i y p Total Lo 1, a 2 ns T U re . S S a e . s c urit O ie t s h 2 er a C ss a e s t h s3 c b T a i a l a l p o i i n a c t i t d i t a e a l s l Total3 m D I a n e n t d erba T n i k m 3 e Dema O nd ther 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 t a a t l s l N ba b u o n e m f r ks 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 1,875 429 597 691 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 Dec. 31........... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 r184 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 Dec. 31........... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 r7,919 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: (1) inclusion of consolidated reports (including figures for all bank- and noninsured commercial banks include, through June 30, 1970, a small premises subsidiaries and other significant majority-owned domestic member bank engaged exclusively in trust business. subsidiaries) and (2) reporting of figures for total loans and for individual Comparability of figures for classes of banks is affected somewhat by categories of securities on a gross basis—that is, before deduction of changes in F.R. membership, deposit insurance status, and the reserve valuation reserves—rather than net as previously reported. classifications of cities and individual banks, and by mergers, etc. 7 Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, Data for national banks for Dec. 31, 1965, have been adjusted to make p. 993. For various changes between reserve city and country status in them comparable with State bank data. 1960-63, see note 6, p. 587, May 1964 Bulletin. Figures are partly estimated except on call dates. 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million For revisions in series before June 30, 1947, see July 1947 Bulletin, was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve pp. 870-71. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, June 30, Dec. 31, Class of Dec. 31, Dec. 31, June 30, Dec. 31, bank 1968 1969 1970 1970 bank 1968 1969 1970 1970 All commercial.... 1,216 1,131 945 804 All member—Cont. Insured................. 1,216 1,129 943 803 Other reserve city................ 332 304 222 143 National member 730 688 536 433 Country.................................. 605 571 492 437 State member.... 207 188 178 147 All nonmember........................ 278 255 230 224 All member............. 937 876 714 580 278 253 229 223 Noninsured........................... 2 2 1 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 □ JUNE 1971 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments Class of lo T a o n ta s l i F er e a d l Com o p s r u e r c c c F u a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Other, U s .S ec . u T r r it e i a es su 6 ry State b c a a n ll k d a a n te d i m n a v e n e n d s t t s f e s u o t n c ld . d 2 , s T 3 o , t 4 al m a c i n i n e a d r l A c t a u u l g r l r 5 - - i - b T ro o R t e a e s t a e l v i d t i n o d i - - - Other Bills g s l a o e o n c c v a u d t l . r O s i e t t i h c e u s e r 5 d tr u ia s l k a e n r d s ot T he o rs 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 1,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1969—Dec. 31 io422,728 9,928286,750 108.443 10,329 5,739 4,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1970—June 30.. 424,18411,193285,843 108,361 11,2333,972 3,565 2,522 14,39370,55064,1807,068 51,569 62,975 12,604 Dec. 31..461,998 16,241297,897 112,48611,1556,332 3,536 2,660 15,85572,49265,8077,57461,742 69,637 16,481 All insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 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 1969—Dec. 31 io419,746 9,693 284,945 107,685 10.314 5,6443,991 2,425 14,89069,669 63,008 7,319 54,399 58,840 11,869 1970—June 30.. 421,141 10,867 284,096 107,567 11,215 3,8863,541 2,457 14,24870,25263,921 7,009 51,248 62,619 12,311 Dec. 31.. 458,919 15,942 21\96,064111,54011,1416,2073,516 2,581 15,713 72,30265,556 7,50761,438 69,301 16,174 Member—Total: 1941—Dec. 31.. 43,521 18,021 8,671 972 594 598 39 3,494 3,653 19,539 971 3,007 15,561 3,0902,871 1945—Dec. 31.. 107,183 22,775 8,949 8553,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,199 3,105 1969—Dec. 31 io337,613 7,356235,63996,0956,187 5,408 3,286 2,258 14,035 53,20748,3886,776 39,833 47,227 7,558 1970—June 30.. 336,266 8,267232,54895,1906,626 3,7492,920 2,228 13,45253,215 48,7296,439 37,324 50,108 8,019 Dec. 31.. 366,520 12,677241,84097,9546,538 5,963 3,028 2,345 14,688 54,60049,829 6,89545,399 55,662 10,942 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 1 1 9 9 4 47 5 — —D D e e c c. . 3 31 1. . . . 2 2 6 0 , , 1 3 4 9 3 3 7 7, , 1 3 7 3 9 4 5 3 , , 3 0 6 4 1 4 2,4 5 5 4 3 5 1,1 2 7 6 2 7 9 2 3 6 11 8 1 0 2 5 8 6 7 4 2 2 7 3 2 8 1 11 7 , , 9 5 7 7 2 4 3 1 , , 9 6 1 4 0 2 3,3 5 2 5 5 8 1 9 0 , , 7 3 7 39 2 6 6 0 38 6 6 6 2 0 9 4 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 44,32826,692 2,444 741 1,228 4,178 3,728 3,773 1,528 4,413 6,847 948 Dec. 31.. 62,347 774 46,38627.189 4,174 686 1,169 3,741 3,883 3,907 1,622 6,009 7,757 1,420 Ci 1 ty 9 4 o 1 f — C D hi e c c a . g 3 o: 1 .. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31.. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31.. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 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 Dec. 31.. 15,745 475 10,739 6,502 356 191 138 1,284 864 1,015 346 2,105 2,055 372 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 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 1,478 588 1,151 689 5,981 19,536 17,156 2,82011,372 17,733 1,955 Dec. 31.. 133,861 6,007 90,293 38,627 1,428 909 1,322 798 7,015 19,848 17,3223,024 14,700 19,771 3,089 Co 1 u 9 n 4 t 1 r — y: Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,2221,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26.999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 5 3,827 1,979 22422,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31 io141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 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 23,667 4,855 Dec. 31.. 154,568 5,420 94,421 25,637 5,052 524 828 239 2,648 30,00527,585 1,903 22,586 26,079 6,062 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 10911,318 2,179 1,219 7,920 1,073 625 1969—Dec. 31 io 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 612 14,875 11,9564,600 1970—June 30.. 87,919 2,926 53,296 13,171 4,606 223 645 294 941 17,336 15,451 62914,245 12,8764,585 Dec. 31. 95,478 3,564 56,058 14,5324,617 369 507 316 1,168 17,891 15,978 679 16,342 13,975 5,538 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
JUNE 1971 □ COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n l a l k s d s a a o n te f d B s F w e R a r . i n R v e th k e . s s r C c a e o n n u i d c r n y b m a w a B d n e n i a o c s t k l e t h i s s c 7 j p u m D a o s d a t d s e e e n i d t d s 8 m D e In s o t t i e c r 7 ba e F n ig k o n r 9 G U o .S vt . . S l g a o o t n c a v a d t t e l . c C c h o a f e e i e f n e r r f c d d i t s k i ’ s, IPC I b n a t n er k G P U S a o o a n . s S v v d t t . a . l S l g a o o t n c a v a d t t e l . IPC3 r B i o n o w g r s c C o a t a u a c p n l i t s etc. ings Total: 3 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 1969—Dec. 31 io.. 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 Dec. 31.... 23,319 7,046 23,136 173,912 27,442 3,166 7,938 17,763 8,540 183,032 1,975 46323,225208,201 19,37542,958 All insured: 1941—Dec. 31.... 12,396 1,358 8,570 37,845 9,823 673 1,762 3,677 1,077 36,544 158 59 492 15,146 10 6,844 1945—Dec. 31.... 15,810 1,829 11,075 74,722 12,566 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31.... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 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 1970—June 30----- 21,526 7,061 17,577 156,743 23,624 2,393 8,040 16,955 10,073 164,725 829 20217,088187,166 18,21541,159 Dec. 31.... 23,319 7,028 22,332 172,351 27,235 2,998 7,898 17,636 8,352 182,048 1,874 46223,150207,519 19,14942,427 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 1969—Dec. 31io.. 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 16813,142144,233 17,50733,184 Dec. 31.... 23,319 5,445 13,744 133,169 26,260 2,882 6,460 13,250 7,309 147,473 1,733 406 18,406 160,998 18,57834,100 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 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 Dec. 31.... 4,683 436 1,308 19,770 10,283 2,225 1,039 1,171 3,286 27,779 956 71 1,464 18,9134,500 6,486 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 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 Dec. 31___ 1,148 126 160 5,120 1,853 77 282 240 210 6,213 49 568 5,549 1,851 1,586 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 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 Dec. 31___ 9,710 1,748 3,731 44,093 10,805 512 2,547 3,793 2,035 53,499 592 222 8,489 58,165 10,391 12,221 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 1969—Dec. 31 io.. 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 Dec. 31.... 7,778 3,135 8,544 64,185 3,319 68 2,592 8,045 1,779 59,982 135 112 7,885 78,370 1,836 13,807 Nonmember:3 1947—Dec. 31 544 3,947 13,595 385 55 167 1,295 180 12,284 190 6 172 6,858 12 1,596 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 Dec. 31 1,602 9,392 40,743 1,182 284 1,478 4,513 1,230 35,560 243 57 4,819 47,200 796 8,858 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. A small noninsured member bank engaged exclusively in trust business 10 Beginning June 30, 1969, reflects (1) inclusion of consolidated reports is treated as a noninsured bank and not as a member bank for the period (including figures for all bank-premises subsidiaries and other significant June 30, 1969—June 30, 1970. 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 □ JUNE 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 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 Total mer U.S. others Total and cul cial Treas Other indus tural Pers. banks ury se trial U.S. U.S. and se curi Treas Other Treas Other sales curi ties ury secs. ury secs. finan. Other ties secs. secs. cos., etc. Large banks— Total 1970 May 6............... 236,643 6,708 6,252 265 109 169,205 79,027 2,025 546 3,310 100 2,327 5,803 5,504 1 3 235,591 7,249 6,728 346 101 167,974 78,598 2,018 477 3,019 97 2,308 5,495 5,439 20............... 234,274 5,980 5,642 196 71 167,806 78,365 2,022 641 3,183 95 2,301 5,352 5,469 2 7 234,231 6,216 5,693 360 79 167,582 77,910 2,031 513 3,277 92 2,290 5,355 5,512 1971 Apr. 7............... 264,321 10,302 7,782 1,994 413 113 177,143 81,019 2,059 1,681 4,236 127 2,331 7,039 6,005 1 4 265,107 10,715 8,458 1,597 455 205 176,995 81,162 2,081 1,100 4,195 119 2,316 7,088 6,054 21............... 264,312 9,525 8,329 735 311 150 177,078 81,336 2,096 895 3,885 117 2.329 7,213 6,151 2 8 260,545 8,233 7,100 773 268 92 176,634 81,191 2,089 579 3,719 89 2.330 7.035 6,260 May 5*............. 262,300 8,214 7,467 392 258 97 177,782 81,467 2,109 556 4,092 110 2,321 7,305 6,446 12*......... 264,516 9,709 8,520 528 262 399 179,186 81,785 2,121 718 4,244 108 2,361 7,363 6,582 19*............. 262,203 9,049 7,970 462 183 434 178,915 81,912 2,130 467 4,075 107 2,348 7.035 6,614 26*......... 259,809 6,974 6,071 405 139 359 178,402 81,595 2,155 565 3,721 122 2,344 6,830 6,671 New York City 1970 May 6............... 54,484 1,525 1,504 41,660 25,559 447 2,048 701 1,972 1,576 1 3 53,428 1,430 1,415 40,875 25,328 325 1,856 697 1,781 1,528 20............... 53,279 1,161 1,136 40,865 25,156 492 2,064 689 1,707 1,544 2 7 53,932 1,700 1,682 40,877 24,953 357 2,197 685 1,754 1,573 1971 Apr. 7............... 58,186 843 791 35 17 43,389 25,617 1,213 2,911 602 2,211 1,400 1 4 57,929 1,084 894 50 40 100 43,078 25,555 879 2,857 600 2,244 1,399 21............... 57,593 1,046 937 70 39 42,538 25,550 712 2,592 601 2,161 1,456 2 8 56,510 1,338 1,185 118 35 41,843 25,381 472 2,420 599 2,090 1,453 May 5*............. 56,554 728 662 46 20 42,279 25,297 461 2,760 615 2,190 1,495 12*......... 57,404 972 680 31 261 43,204 25,727 608 2,847 612 2,209 1,525 19*............. 56,918 1,541 1,198 71 272 42,800 25,699 365 2,747 596 2,160 1,519 26*............. 55,519 723 488 13 20 202 42,228 25,492 426 2,459 591 2,029 1,551 Outside New York City 1970 May 6............... 182,159 5,183 4,748 259 94 127,545 53,468 2,012 99 1,262 1,626 3,831 3,928 1 3 182,163 5.819 5,313 344 127,099 53,270 2,005 152 1,163 1,611 3,714 3,911 20............... 180,995 4.819 4,506 186 126,941 53,209 2,009 149 1,119 1,612 3,645 3,925 2 7 180,299 4,516 4,011 355 126,705 52,957 2,017 156 1,080 1,605 3,601 3,939 1971 Apr. 7............... 206,135 9,459 6,991 1,959 413 96 133,754 55,402 2,039 468 1,325 107 1,729 4,828 4,605 1 4 207,178 9,631 7,564 1,547 415 105 133,917 55,607 2,061 221 1,338 98 1,716 4,844 4,655 21............... 206,719 8,479 7,392 665 311 111 134,540 55,786 2,076 183 1,293 95 1,728 5,052 4,695 2 8 204,035 6,895 5,915 655 268 57 134,791 55,810 2,069 107 1,299 71 1,731 4,945 4,807 May 5*............. 205,746 7,486 6,805 346 258 77 135,503 56,170 2,089 95 1,332 89 1,706 5,115 4,951 12*............. 207,112 8,737 7,840 497 262 138 135,982 56,058 2,101 110 1,397 89 1,749 5,154 5,057 19*............. 205,285 7,508 6,772 391 183 162 136,115 56,213 2,110 102 1,328 89 1.752 4,875 5,095 26*............. 204,290 6,251 5,583 392 119 157 136,174 56,103 2,135 139 1,262 103 1.753 4,801 5,120 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ 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 con imercial Notes and bonds banks maturing— Wednesday Con Real sumer For All Certif estate instal eign other Total Bills icates Do For ment govts. 2 Within 1 to After mes eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1970 33,358 468 1,342 20,309 993 14,093 22,426 2,965 3,443 13,616 2,402 .............................May 6 33,425 417 1,355 20,369 987 13,970 22,055 2,645 3,412 13,618 2,380 ........................................13 33,417 403 1,317 20,380 984 13,877 22,652 2,335 3,181 14,723 2,413 ........................................20 33,469 452 1,420 20,413 991 13,857 22,779 2,510 3,367 14,513 2,389 ........................................27 1971 34,445 583 1,451 21,586 770 13,811 28,380 6,110 3,066 15,134 4,070 .............................Apr. 7 34,571 579 1,474 21,653 802 13,801 28,387 6,143 3,104 15,127 4,013 ......................................14 34,648 530 1,412 21,678 786 14,002 28,075 5,854 3,125 15,151 3,945 ........................................21 34,729 562 1,488 21,786 805 13,972 26,569 4,409 3,161 15,070 3,929 ......................................28 34,749 561 1,384 21,813 767 14,102 26,506 4,211 3,258 15,081 3,956 ...........................May 5» 34,866 671 1,715 21,901 808 13,943 26,154 3,938 3,273 14,995 3,948 ......................................12» 34,933 659 1,861 21,938 800 14,036 25,231 3,365 3,322 14,820 3,724 ...........................19» 35,044 638 1,866 22,040 814 13,997 25,567 3,861 3,320 14,735 3,651 ...........................26p New York City 1970 3,362 266 730 1,653 620 2,701 4,424 1,066 491 2,597 270 ...........................May 6 3,378 232 717 1,655 614 2,740 4,300 941 495 2,600 264 ......................................13 3,381 217 701 1,660 609 2,621 4,582 779 353 3,098 352 ......................................20 3,404 242 793 1,670 610 2,614 4,723 936 346 3,080 361 ......................................27 1971 3,581 206 824 1,819 472 2,493 5,693 1,713 371 2,896 713 ...........................Apr. 7 3,611 184 840 1,831 502 2,535 5,525 1,567 378 2,867 713 ......................................14 3,624 126 776 1,824 501 2,573 5,486 1,552 363 2,883 688 ......................................21 3,628 155 830 1,820 508 2,449 5,053 1,154 368 2,885 646 ......................................28 3,660 138 706 1,816 488 2,612 5,079 1,018 457 2,914 690 ...........................May 5p 3,678 242 903 1,821 524 2,469 5,025 1,086 456 2,838 645 ......................................12 p 3,689 200 988 1,824 515 2,460 4,570 786 446 2,778 560 ......................................19 p 3,700 151 960 1,822 518 2,490 4,781 1,060 436 2,736 549 ......................................26p Outside New York City 1970 29,996 202 612 18,656 373 11,392 18,002 1,899 2,952 11,019 2,132 .May 6 30,047 185 638 18,714 373 11,230 17,755 1,704 2,917 11,018 2,116 ...........13 30,036 186 616 18,720 375 11,256 18,070 1,556 2,828 11,625 2,061 .......20 30,065 210 627 18,743 381 11,243 18,056 1,574 3,021 11,433 2,028 ...........27 1971 30,864 377 627 19,767 298 11,318 22,687 4,397 2,695 12,238 3,357 . Apr. 7 30,960 395 634 19,822 300 11,266 22,862 4,576 2,726 12,260 3,300 ...........14 31,024 404 636 19,854 285 11,429 22,589 4,302 2,762 12,268 3,257 .......21 31,101 407 658 19,966 297 11,523 21,516 3,255 2,793 12,185 3,283 ...........28 3 3 1 1 , , 0 1 8 8 9 8 4 4 2 2 9 3 6 8 7 1 8 2 2 1 0 9 , , 0 99 8 7 0 2 2 7 8 9 4 1 1 1 1 , , 4 4 9 7 0 4 2 21 1 , , 1 42 2 7 9 2 3 , , 8 19 5 3 2 2 2 , , 8 8 0 1 1 7 1 1 2 2 , , 1 1 6 5 7 7 3 3 , , 2 30 6 3 6 . .M ... a .. y . 12 5 * p 31,244 459 873 20,114 285 11,576 20,661 2,579 2,876 12,042 3,164 ...........19p 31,344 487 906 20,218 296 11,507 20,786 2,801 2,884 11,999 3,102 ...........26 p For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
REPORTING BANKS □ JUNE 1971 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continu (In millions of dollars) Investments (cont.) Other securities Cash Obligations Other bonds, items Re of State corp. stock, in serves Cur and and process with rency political securities of F.R. and liab Total subdivisions collec Banks coin iti< tion Tax Certif. war All of All rants 3 other partici others pation4 38,304 4,994 29,154 1,019 3,137 32,803 17,747 2,956 309. 38,313 4,993 29,171 1,092 3,057 31,314 16,921 3,252 306; 37,836 4,758 29,043 1,012 3,023 31,632 17,049 3,210 305 j 37,654 4,670 28,963 1,017 3,004 31,408 15,967 3,295 303, 48,496 7,294 34,256 1,180 5,766 31,817 17,959 3,158 340, 49,010 7,347 34,611 1,190 5,862 36,811 18,041 3,528 346, 49,634 7,947 34,570 1,192 5,925 34,084 18,648 3,486 342, 49,109 7,762 34,353 1,169 5,825 32,615 19,298 3,560 338, 49,798 7,849 34,866 1,172 5,911 33,651 21,038 3,127 343, 49,467 7,709 34,666 1,201 5,891 32,277 17,961 3,436 341, 49,008 7,360 34,673 1,159 5,816 32,059 19,461 3,455 339, 48,866 7,389 34,593 1,175 5,709 28,466 19,688 3,569 333, 6,875 1,369 4,575 94 837 17,020 4,841 406 82. 6,823 1,314 4,612 89 808 15,409 4,643 433 79; 6,671 1,259 4,544 81 787 15,625 4,633 404 79, 6,632 1,200 4,569 83 780 16,353 4,115 431 80, 8,261 1,373 5,346 123 1,419 14,905 4,298 414 84, 8,242 1,317 5,416 127 1,382 18,090 4,946 439 88. 8,523 1,685 5,306 122 1,410 15,896 4,994 418 85; 8,276 1,598 5,167 123 1,388 16,275 4,986 437 85, 8,468 1,521 5,445 119 1,383 15,788 5,808 399 85, 8,203 1,538 5,240 111 1,314 14,580 4,418 425 84; 8,007 1,319 5,278 111 1,299 14,716 4,696 410 83! 7,787 1,338 5,130 128 1,191 12,530 5,199 429 80; I 31,429 3,625 24,579 925 2,300 15,783 12,906 2,550 227, 31,490 3,679 24,559 1,003 2,249 15,905 12,278 2,819 226 31,165 3,499 24,499 931 2,236 16,007 12,416 2,806 225 31,022 3,470 24,394 934 2,224 15,055 11,852 2,864 223 40,235 5,921 28,910 1,057 4,347 16,912 13,661 2,744 255 40,768 6,030 29,195 1,063 4,480 18,721 13,095 3,089 258 41,111 6,262 29,264 1,070 4,515 18,188 13,654 3,068 257 40,833 6,164 29,186 1,046 4,437 16,340 14,312 3,123 253; 41,330 6,328 29,421 1,053 4,528 17,863 15,230 2,728 257 41,264 6,171 29,426 1,090 4,577 17,697 13,543 3,011 257 41,001 6,041 29,395 1,048 4.517 17,343 14,765 3,045 256 41,079 6,051 29,463 1,047 4.518 15,936 14,489 3,140 253 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 o WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF URGE 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 134,258 90,088 6,923 4,471 19,034 623 826 2,159 10,134 99,221 45,964 36,753 8,983 338 6,912 130,392 90,872 6,329 2,677 18,261 549 1,054 2,296 8,354 99,312 45,969 36,872 8,970 334 6,894 ............................13 132,140 90,000 6,371 6,136 17,825 528 767 2,120 8,393 99,513 46,058 36,831 8,985 350 7,020 ............................20 130,554 91,017 6,353 3,760 17,108 536 718 2,171 8,891 99,470 46,066 36,919 8,972 353 6,889 ............................27 1971 140,699 97,896 6,409 1,971 22,668 829 763 2,324 7,839 128,846 53,083 55,192 14,421 1,520 4,085 146,283 101,985 6,419 2,717 21,467 725 861 2,225 9,884 128,724 53,026 54,945 14,557 1,507 4,152 ............................14 143,975 98,470 6,380 5,483 22,075 662 790 2,214 7,901 128,632 53,021 54,307 15,066 1,563 4,161 ............................21 141,474 97,099 6,353 5,833 20,750 631 778 2,329 7,701 129,338 53,043 54,797 15,229 1,565 4,162 ............................28 143,385 96,054 7,674 5,685 21,762 714 827 2,370 8,299 129,537 53,159 54,871 15,205 1,595 4,179 142,093 96,567 6,654 6,653 21,083 652 876 2,291 7,317 129,792 53,261 55,031 15,316 1,529 4,118 ............................12* 139,271 96,205 6,549 5,114 20,321 635 791 2,176 7,480 130,567 53,396 55,387 15,285 1,563 4,393 136,096 95,926 6,249 5,317 18,616 841 762 2,214 6,171 131,146 53,434 55,662 15,379 1,577 4,554 ............................26* New York City 1970 42,146 21,577 732 1,052 8,432 331 661 1,510 7,851 13,900 4,386 4,477 359 198 4,375 39,759 21,556 514 465 8,085 286 877 1,644 6,332 13,801 4,381 4,473 362 196 4,283 ............................13 40,283 21,643 521 1,602 7,758 272 601 1,464 6,422 13,791 4,390 4,370 343 214 4,368 ............................20 40,756 22,846 415 853 7,477 288 557 1,511 6,809 13,760 4,385 4,426 343 214 4,287 ............................27 1971 41,319 22,556 642 284 10,126 469 592 1,682 4,968 21,049 5,218 11,566 1,174 767 2,195 44,392 23,695 552 628 9,807 398 687 1,562 7,063 21,233 5,235 11,664 1,203 778 2,225 ............................14 42,552 22,739 477 1,316 10,322 349 608 1,553 5,188 21,044 5,270 11,292 1,256 848 2,268 ............................21 42,800 23,143 370 1,356 10,202 323 610 1,641 5,155 21,464 5,288 11,660 1,283 861 2,248 ............................28 43,094 22,337 1,189 1,317 9,953 372 654 1,728 5,544 21,475 5,310 11,764 1,229 827 2,222 41,253 21,766 442 1,654 9,844 334 703 1,654 4,856 21,437 5,323 11,740 1,272 766 2,208 ............................12p 40,735 22,150 587 1,140 9,346 332 601 1,528 5,051 21,635 5,342 11,789 1,286 767 2,320 38,695 22,345 417 1,356 8,066 556 560 1,540 3,855 21,932 5,337 11,878 1,313 784 2,491 Outside New York City 1970 92,112 68,511 6,191 3,419 10,602 292 165 649 2,283 85,321 41,578 32,276 8,624 140 2,537 90,633 69,316 5,815 2,212 10,176 263 177 652 2,022 85,511 41,588 32,399 8,608 138 2,611 ............................13 91,857 68,357 5,850 4,534 10,067 256 166 656 1,971 85,722 41,668 32,461 8,642 136 2,652 ............................20 89,798 68,171 5,938 2,907 9,631 248 161 660 2,082 85,710 41,681 32,493 8,629 139 2,602 ............................27 1971 99,380 75,340 5,767 1,687 12,542 360 171 642 2,871 107,797 47,865 43,626 13,247 753 1,890 .................Apr. 7 101,891 78,290 5,867 2,089 11,660 327 174 663 2,821 107,491 47,791 43,281 13,354 729 1,927 ............................14 101,423 75,731 5,903 4,167 11,753 313 182 661 2,713 107,588 47,751 43,015 13,810 715 1,893 ............................21 98,674 73,956 5,983 4,477 10,548 308 168 688 2,546 107,874 47,755 43,137 13,946 704 1,914 100,291 73,717 6,485 4,368 11,809 342 173 642 2,755 108,062 47,849 43,107 13,976 768 1,957 100,840 74,801 6,212 4,999 11,239 318 173 637 2,461 108,355 47,938 43,291 14,044 763 1,910 ............................12 p 98,536 74,055 5,962 3,974 10,975 303 190 648 2,429 108,932 48,054 43,598 13,999 796 2,073 ............................19* 97,401 73,581 5,832 3,961 10,550 285 202 674 2,316 109,214 48,097 43,784 14,066 793 2,063 ............................26® For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 30 WEEKLY REPORTING BANKS □ JUNE 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? ad justed 10 Total to to foreign justed9 IPC’s others bran ches Large banks— Total 1970 May 6......................... 20,414 340 2,539 25,161 4.036 23,823 169,193 229,923 77,950 12,966 5,938 7,028 11,954 1 3 20,503 709 2,396 25,089 4.036 23,800 168,078 228,446 78,140 12,960 5,974 6,986 11,653 20......................... 17,635 283 2,390 25,560 4.036 23,751 167,741 228,229 76,547 13,068 5,966 7,102 11,998 2 7 17,530 675 2,253 25,536 4.036 23,814 167,653 228,086 78,278 12,984 5,982 7,002 12,346 1971 Apr. 7......................... 21,853 168 1,038 18,179 4,054 25,431 179,080 255,956 84,243 27,304 17,483 9,821 3,260 1 4 23,648 212 1,047 17,171 4.047 25,363 178,673 256,070 85,288 27,237 17,434 9,803 2,317 21................... 23,428 78 1,004 16,346 4.044 25,299 177,744 255,453 82,333 26,741 16,711 10,030 2,253 2 8 20,111 694 912 16,532 4.045 25,350 177,205 252,883 82,276 27,219 17,096 10,123 2,158 May 1 5 2 p p . . . . . . .. . . . .. . . . . . .. . . . .. . . . . . .. . . . .. . . 2 2 2 3 , , 4 5 4 5 8 9 74 1 8 5 1,0 9 4 85 9 1 1 5 6 , , 7 4 6 5 8 9 4 4 . , 0 0 4 3 8 2 2 2 5 5 , , 5 5 5 5 5 7 1 1 7 7 7 9 , , 9 7 6 0 8 4 2 2 5 5 5 4 , , 3 2 2 7 5 2 8 8 2 2 , , 2 0 8 8 7 0 2 27 7 , , 1 1 8 2 5 7 1 1 7 7 , , 0 0 1 9 7 8 1 10 0 , , 0 1 8 1 7 0 2 1 , , 0 5 0 98 4 19*....................... 22,382 920 981 16,170 4,030 25,474 179,335 253,574 81,777 27,606 17,264 10,342 1,620 26p................ 18,734 1,246 983 16,021 4,021 25,482 178,667 253,100 83,697 28,137 17,441 10,696 1,572 New York City 1970 May 6......................... 5,850 50 308 13,226 1,208 6,103 41,415 52,714 15,642 2,966 878 2,088 7,786 1 3 5,563 308 12,978 1,208 6,096 40,658 51,781 15,800 2,863 866 1,997 7,528 20......................... 4,972 337 13,119 1,210 6,080 40,673 51,926 15,298 2,901 840 2,061 7,582 2 7 4,947 14 322 13,596 1,211 6,070 40,653 52,008 16,073 2,842 858 1,984 7,985 1971 Apr. 7......................... 6,747 8,005 1.196 6,507 43,235 57,189 16,004 8,867 6,409 2,458 1,867 1 4 7,292 120 7,476 1.196 6,482 43,084 56,851 15,867 9,103 6,613 2,490 1,184 21......................... 7,414 7,008 1,198 6,465 42,521 56,530 15,018 8,920 6,263 2,657 1,236 2 8 5,542 ‘295 7,272 1,200 6,436 41,841 55,170 14,967 9,334 6,623 2,711 1,409 May 5^....................... 6,180 319 6,872 1,204 6.510 42,207 55,754 16,036 9,309 6,628 2,681 1,180 12*....................... 7,370 6,409 1.189 6,519 43,254 56,482 15,175 9,280 6,659 2,621 911 \9p................ 6,484 620 6,647 1.190 6.510 42,943 55,520 15,533 9,435 6,646 2,789 1,028 26p................ 5,015 672 6,596 1,195 6,488 42,312 54,880 16,743 9,719 6,730 2,989 993 Outside New York City 1970 May 6......................... 14,564 290 2,231 11,935 2,828 17,720 127,778 177,209 62,308 10,000 5,060 4,940 4,168 1 3 14,940 709 2,088 12,111 2,828 17,704 127,420 176,665 62,340 10,097 5,108 4,989 4,125 20......................... 12,663 283 2,053 12,441 2,826 17,671 127,068 176,303 61,249 10,167 5,126 5,041 4,416 2 7 12,583 661 1,931 11,940 2,825 17,744 127,000 176,078 62,205 10,142 5,124 5,018 4,361 1971 Apr. 7......................... 15,106 168 969 10,174 2,858 18,924 135,845 198,767 68,239 18,437 11,074 7,363 1,393 1 4 16,356 92 982 9,695 2,851 18,881 135,589 199.219 69,421 18,134 10,821 7,313 1,133 21......................... 16,014 78 941 9,338 2,846 18,834 135,223 198,923 67,315 17,821 10,448 7,373 1,017 2 8 14,569 399 855 9,260 2,845 18,914 135,364 197,713 67,309 17,885 10,473 7,412 749 May 5^....................... 16,268 429 928 9,587 2,844 19,047 135,761 198,518 66,251 17,818 10,389 7,429 824 \2p....................... 16,189 15 994 9,359 2,843 19,036 136,450 198,843 66,905 17,905 10,439 7,466 687 19*>....................... 15,898 300 930 9,523 2,840 18,964 136,392 198,054 66,244 18,171 10,618 7,553 592 26?................ 13,719 574 932 9,425 2,826 18,994 136,355 198.220 66,954 18,418 10,711 7,707 579 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. !0A11 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
JUNE 1971 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF URGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1971 1971 1971 1970 1970 May May May May Apr. May Apr.r Mar. I IV III 2nd 1st 26 19 12 5 28r half half Durable goods manufacturing: Primary metals.................................... 2,321 2,311 2,297 2,316 2,318 3 3 141 169 -169 149 -20 81 Machinery............................................ 5,304 5,359 5,390 5,307 5,295 9 113 -168 -247 -595 -173 -768 271 Transportation equipment................ 2,627 2,616 2,633 2,625 2,632 -5 -205 41 -92 -69 238 169 127 Other fabricated metal products... 2,022 2,025 2,026 2,014 2,020 2 44 69 68 -269 -75 -344 249 Other durable goods.......................... 2,741 2,747 2,766 2,740 2,703 38 90 149 -249 51 -198 237 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,324 2,391 2,350 2,402 2,501 -177 -66 -76 -537 549 -199 350 -499 Textiles, apparel, and leather........... 2,478 2,498 2,517 2,499 2,448 30 -36 82 166 -522 127 -395 376 Petroleum refining.............................. 1,181 1,182 1,189 1,148 1,183 -2 -197 -343 -105 -8 -113 -79 Chemicals and rubber....................... 2,769 2,830 2,873 2,838 2,826 -57 14 31 32 -22 85 63 -128 Other nondurable goods................... 1,857 1,854 1,869 1,837 1,850 7 -43 4 -105 -214 101 -113 27 Mining, including crude petroleum and natural gas............................. 3,821 3,800 3,789 3,810 3,821 -74 -88 -108 -181 -76 -257 -577 Trade: Commodity dealers................... 1,134 1,159 1,159 1,132 1,199 -65 -123 5 -57 375 106 481 -292 Other wholesale......................... 3,872 3,913 3,910 3,843 3,772 100 61 81 10 26 52 78 54 Retail............................................ 4,402 4,424 4,275 4,394 4,264 138 57 135 162 -201 -107 -308 173 Transportation........................................ 6,076 6,036 6,000 6,024 6,076 -210 141 286 119 247 366 -96 Communication...................................... 1,443 1,465 1,430 1,358 1,424 19 67 -59 49 46 -27 19 -250 Other public utilities.............................. 1,966 1,958 1,985 2,037 2,000 -34 -21 -365 -327 -240 -146 -386 -831 Construction............................................ 3,770 3,754 3,719 3,716 3,653 117 70 117 r131 146 51 197 66 Services..................................................... 7,387 7,415 7,400 7,481 7,439 -52 241 -35 —200 300 225 525 -147 All other domestic loans....................... 4,807 4,903 4,906 4,860 4,812 -5 66 79 —180 -52 148 96 -115 Bankers’ acceptances.............................. 1,355 1,413 1,488 1,502 1,454 -99 -73 -110 -164 945 241 1,186 -203 Foreign commercial and industrial loans.................................................. 2,703 2,665 2,681 2,480 2,535 168 -14 145 140 198 57 255 -84 Total classified loans.............................. 68,360 68,718 68,652 68,363 68,225 135 -129 63 -998 -184 1,068 884 -1,640 Total commercial and industrial loans. 81,595 81,912 81,785 81,467 81,191 404 -10 424 r—473 372 1,607 1,979 -1,940 See Note to table below. “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1971 1970 1971 1970 1970 Industry M 2 a 6 y A 2 p 8 r. 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. j IV III jj h 2n a d lf Durable goods manufactur ing: Primary metals..................... 1,668 1,622 1,630 1,564 1,544 1,527 1,535 1,548 1,677 103 -150 157 68 7 Machinery............................ 2,595 2,735 2,591 2,634 2,666 2,681 2,690 2,826 2,924 -90 -243 140 -16 -103 Transportation equipment. 1,442 1,515 1,613 1,633 1,647 1,633 1,621 1,627 1,655 -20 -22 91 -11 69 Other fabricated metal products............................ 804 769 733 747 750 742 801 781 807 -9 -65 45 3 -20 Other durable goods.......... 1,201 1,191 1,216 1,222 1,107 1,089 1,131 1,136 1,141 127 -52 9 -30 -43 Nondurable goods manufac turing: Food, liquor, and tobacco. 919 982 974 971 949 985 932 984 1,008 -11 -23 1 47 -22 Textiles, apparel, and leather................................ 609 592 617 659 674 657 703 720 751 -40 -94 -11 36 -105 Petroleum refining.............. 921 932 915 1,142 1,191 1,213 1,220 1,230 1,248 -298 -35 -18 11 -53 Chemicals and rubber........ 1,728 1,822 1,850 1,834 1,800 1,849 1,738 1,693 1,780 1 69 71 -96 140 Other nondurable goods.. 1,058 1,062 1,100 1,116 1,116 1,171 1,159 1,171 1,183 -71 -12 112 -75 100 Mining, including crude pe troleum and natural gas. 3,058 3,089 3,123 3,270 3,354 3,326 3,329 3,419 3,461 -203 -135 -121 -127 -256 Trade: Commodity dealers.. 87 81 80 79 79 79 83 73 82 1 -3 -6 10 -9 Other wholesale......... 810 813 782 754 783 756 739 727 697 26 59 5 -4 64 Retail............................ 1,425 1,404 1,417 1,459 1,450 1,399 1,371 1,351 1,360 18 39 52 102 91 Transportation......................... 4,689 4,757 4,867 4,763 4,731 4,564 4,453 4,443 4,417 303 147 141 -55 288 Communication....................... 439 426 402 398 398 415 415 386 448 -13 -33 40 -68 7 Other public utilities............... 1,038 991 973 1,056 1,029 1,018 1,022 1,017 1,065 -45 -47 32 -128 -15 Construction............................ 1,177 1,164 1,107 1,063 1,048 1,044 1,005 972 957 63 -87 46 8 189 Services...................................... 3,197 3,249 3,142 3,154 3,186 3,209 3,208 3,069 3,132 -67 77 115 22 192 All other domestic loans .... 1,353 1,223 1,268 1,319 rl, 346 1,285 1,716 1,241 1,225 -17 60 -2 15 56 Foreign commercial and in dustrial loans................... 1,788 1,840 1,792 1,716 1,723 1,716 1,283 1,612 1,604 76 112 -16 21 96 Total loans................................ 32,006 32,259 32,192 32,553 *•32,571 32,358 32,205 32,026 32,622 -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 o JUNE 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 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 1,872 411 1,461 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 2,416 1,614 802 1,872 415 1,457 31........... 2,560 1,556 1,004 1 ,866 415 1,451 Apr. 7........... 2,375 1 ,472 903 1 ,855 421 1,434 14........... 2,286 1,403 883 1,854 420 1,434 21........... 2,320 1,469 851 1 ,877 424 1,453 28........... 2,409 1,560 849 1 ,873 417 1,456 May 5........... 2,574 1,619 955 1,892 417 1,475 12........... 2,525 1 ,607 918 1,894 420 1 ,474 19........... 2,520 1 ,626 894 1,890 410 1,480 26........... 2,528 1,627 901 1,911 413 1,498 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 4.7 3.7 2.3 1.4 3.5 1.0 6.7 .5 13.6 .7 7.5 0 35.1 .3 4.3 .7 5.9 .5 17.8 .5 27.5 47.3 .2 7.51-7.9 9 16.6 .3 4.2 1.0 7.0 .6 18.0 .2 22.7 .1 16.4 .4 8 8 8. . . 5 0 0 1 0 - . 0 8 .. . . 4 . .. 9 .. ............... 6 5 8 . . . 8 8 9 4 2 7 0 1 . . . 1 9 9 1 7 8 0 . . . 3 7 0 6 6 8 . . . 7 3 0 1 1 1 1 1 0 . . . 3 8 0 1 8 8 1 . . . 8 2 0 11 8 10 . ..58 0 1 1 1 9 9 1 . . . 5 2 6 1 7 6 1 . . . 6 6 3 2 3 1 5 6 0 . . . 5 0 0 7 4 4. . . 1 7 2 2 5 5 7 1 . . . 3 6 4 8.51-8.9 9 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 9.01-9.4 9 1.9 4.2 10.1 12.9 7.3 11.7 3.2 7.7 2.3 4.1 .5 1.6 9.5 0 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. 1971 the Quarterly Survey of Interest Rates on Business Loans was revised. For description of revised series see pp. 468- 77 of this Bulletin, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 192 9 5^-6 1951—Jan. 8. 21/2 1959—May 18... 41/2 1969—Jan. 7 7 Oct. 17. 2% Sept. 1.. . 5 Mar. 17 71/2 193 0 31/2-6 Dec. 19. 3 June 9 81/2 19 31......................... 23^-5 1960—Aug. 23... 41/2 193 2 314-4 1953—Apr. 27. 314 1970—Mar. 25 8 193 3 n/z-4 1965—Dec. 6... Sept. 21 m 1954—Mar. 17. 3 1966—Mar. 10... 5Vi Nov. 12 7 H 193 1 4 9 — 47 (Nov.)........ 1955— O Au ct g . . 1 4 4 , 3 31 1 / 4 2 J A u u n g e . 2 1 9 6 . . . . . . 5 6 34 N De o c v . . 2 2 2 3 6 7 34 Effective date 1956— A A u pr g . . 13 2 1 4 3% 1967— N J M a o n a v r . . . 2 2 2 6 7 0 - . 2 . . 7 . . . 5 5 6 1 1 / / 2 2-53/4 1971— J J J a a a n n n . . . 1 1 6 8 5 6 6 6 1 % /4 Feb. 16 534 1947—Dec. i.... 1V4 1957—Aug. 6 41/2 1968—Apr. 19... 61/2 Mar. 11 514-51/2 Sept. 25... 6 -614 Mar. 19 514 1948—Aug.i... . 2 1958—Jan. 22 4 Nov. 13... 61/4 Apr. 23 51/4-51/2 Apr. 21 31/2 Dec. 2... 61/2 May 11, 51/2 1950—Sept. 22. 214 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 coml. paper bankers’ Federal 3-month bills5 6-month bills5 9- to 12-month issues Period paper placed accept funds 3- to 5- 4- to 6- directly, ances, rate3 year months1 m 3- o n to t h 6 s - 2 90 days1 new issue RateM o y an ie r l k d et n R ew at e is o su n e M y a ie r l k d et k B e il t l s y i ( e m ld a ) r 5 Other6 issues 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—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 Apr.................... 4.57 4.27 4.36 4.15 3.780 3.85 3.927 4.03 4.09 4.21 5.42 May.................. 5.10 4.69 4.91 4.63 4.139 4.13 4.367 4.34 4.64 4.93 6.02 Week ending— 1971—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 Apr. 3........... 4.23 4.08 4.00 4.02 3.521 3.61 3.695 3.72 3.70 3.89 4.85 10........... 4.28 4.13 4.13 3.98 3.703 3.78 3.754 3.85 3.79 4.02 5.08 17........... 4.58 4.28 4.38 4.20 4.039 3.96 4.140 4.09 4.10 4.16 5.37 24........... 4.70 4.34 4.45 4.27 3.770 3.81 3.960 4.02 4.14 4.19 5.59 May 1........... 4.80 4.39 4.60 4.14 3.865 3.93 4.087 4.22 4.44 4.53 5.77 8........... 5.00 4.50 4.83 4.41 3.865 3.84 4.182 4.20 4.46 4.69 5.92 15........... 5.00 4.51 4.88 4.59 3.861 3.96 4.178 4.23 4.58 4.75 5.98 22........... 5.15 4.79 4.95 4.55 4.352 4.36 4.530 4.49 4.79 5.20 6.20 29........... 5.25 4.98 5.00 4.68 4.478 4.38 4.578 4.46 4.73 5.08 5.97 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 □ JUNE 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 Total i term) Total i Aaa Baa Aaa Baa In tr d ia u l s R ro a a i d l P u u ti b li l t i y c fe P r r r e e d C m o o m n C m o o m n 1962................................................... 3.95 3.30 3.03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963................................................... 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964................................................... 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965................................................... 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966................................................... 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967................................................... 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968................................................... 5.25 4.48 4.20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 1969................................................... 6.10 5.73 5.45 6.07 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.05 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 6.28 1970—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 July........................................ 6.57 6.68 6.40 7.02 8.85 8.44 9.40 8.61 9.11 9.01 7.62 4.20 Aug........................................ 6.75 6.27 5.96 6.65 8.73 8.13 9.44 8.44 9.19 8.83 7.41 4.07 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 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 5.48 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 Apr........................................ 5.75 5.49 5.22 5.85 7.86 7.25 8.45 7.43 8.37 8.05 6.59 2.99 May....................................... 5.96 5.99 5.71 6.36 8.03 7.53 8.62 7.68 8.40 8.23 6.82 3.04 Week ending— 1971—Mar. 6............................... 5.94 5.46 5.15 5.85 7.78 7.13 8.40 7.27 8.37 8.00 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 Apr. 3................................ 5.64 5.24 5.00 5.60 7.85 7.22 8.46 7.42 8.38' 8.03 6.53 3.07 10................................ 5.66 5.33 5.10 5.70 7.84 7.23 8.45 7.42 8.35 8.02 6.54 3.02 17................................ 5.73 5.45 5.20 5.80 7.85 7.24 8.45 7.42 8.38 8.03 6.54 2.98 24................................ 5.82 5.61 5.30 6.00 7.86 7.24 8.42 7.43 8.37 8.05 6.62 2.99 May. 1................................ 5.81 5.80 5.50 6.15 7.89 7.30 8.47 7.46 8.38 8.10 6.64 2.95 8............................... 5.92 5.96 5.65 6.25 7.95 7.43 8.52 7.57 8.37 8.14 6.69 2.98 15............................... 5.96 6.08 5.80 6.40 7.99 7.48 8.59 7.64 8.38 8.17 6.74 3.01 22............................... 6.04 6.00 5.70 6.40 8.08 7.57 8.69 7.75 8.44 8.28 6.82 3.06 29............................... 5.90 6.00 5.70 6.40 8.12 7.66 8.66 7.77 8.43 8.35 7.03 3.11 7 1 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
JUNE 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) Stoc Ex change ( G l U o o . n v S g t . . S l a o t n c a d a te l p A C or A o a r A t e Total In tr d i u al s R ro a a i d l P u u ti b li l t i y c Total In tr d i u al s T p t o r i a r o n t n a s Utility na F n i ce in to d t e a x l i NYSE AMEX term) 1967............................ 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968............................ 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1969............................ 64.49 79.0 68.5 97.84 106.30 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 1970............................ 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—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—Jan.................. 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 Apr................. 67.57 80.4 65.1 103.04 113.68 42.29 62.06 56.81 60.65 45.35 41.73 73.91 26.43 19,126 5,685 May............... 65.72 75.6 63.7 101.64 112.41 42.05 59.20 56.00 60.21 45.48 39.70 70.89 26.03 15,157 4,157 Week ending— 1971—May 1......... 67.06 77.8 65.2 104.34 115.35 43.65 60.85 57.51 61.65 47.50 40.97 74.55 26.59 20,556 6,282 8......... 66.05 76.4 64.3 103.39 114.36 43.02 60.08 56.98 61.19 46.57 40.51 72.60 26.39 17.297 4,734 15........ 65.70 75.3 63.9 102.56 113.39 42.53 59.93 56.52 60.73 46.09 40.15 71.66 26.18 15,960 4,172 22......... 64.97 75.3 63.2 100.98 111.68 41.53 58.79 55.61 59.82 44.86 39.42 70.12 25.87 14,158 4,051 29......... 66.18 75.6 63.5 99.64 110.20 41.12 57.99 54.89 59.10 44.40 38.71 69.12 25.68 13,213 3,672 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 Vi hours per day, or 21l/i 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-JuIy 3, 20; July 7-Dec. 31cent, 20-year bond. Municipal and corporate bonds, derived from average 22.5; 1970—Jan. 2-May 1, 25. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t n c e t r t ) c F c h ( e e a p e n r e s t g r ) e & 1 s M (y a e t a u r r s i ) ty L p r c ( o a e p r n a t i e i c n r t o e ) / (t d h c o p P o h l r u u l a i a s r c s r . e e s o ) f (t a d h L m o o l o u 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 n c e r t t ) c F c h ( e e a p n e r e s t g r ) e & i s M (y a e t a u r r s i ) ty L c r p ( o a e p r n t a i e c i r t n o e ) / (t d h c o p o P h l u r u l a i a s r c s . r e e s o ) f (t d a h L m o o l u o l o a a s 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—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 73.8 35.3 25.8 8.12 .85 23.3 71.9 30.7 21.7 1971—Jan................ 8.03 .92 25.8 73.3 36.2 26.4 7.94 .82 23.5 72.5 30.7 22.0 Feb............... 7.74 1.00 26.2 73.9 37.0 26.2 7.67 .79 24.0 73.1 31.1 22.5 Mar.r.......... 7.52 .83 25.9 73.7 35.9 26.0 7.47 .77 24.1 73.5 31.7 23.0 Apr............... 7.36 .74 26.4 73.7 36.5 26.5 7.35 .74 24.1 73.5 31.7 23.0 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 □ JUNE 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) End of period B m ro a C l k r r g e e r i s d n i t c B u e s a x t 2 n t o e k m n s d e e rs d T b t o y o t — al to a d C b n n m e u a c e b e l s e t i r s t s’ to c a C m b f r n n r e u a c e e e d l s e e t r i s s t ’ b t c e r N r n e o b e x d k y e d e e t i d t rs E pe n r d i o o d f Un 2 d 0 er 2 A 0 d -2 ju 9 sted 3 0 d ( - e p 3 b e 9 r t/ c c o e l n 4 l 0 a t) t - e 4 r 9 al v 5 a 0 lu - e 5 9 6 m 0 o r o e r j T ( l u d i a m o s o e d t t b n i e a l t s d l of Unre dol 1970—Apr................ 4,360 2,330 6,690 5,985 2,248 3,724 strict Restricted lars) May............... 4,160 2,290 6,450 5,433 2,222 3,211 ed June...............•s 1 / 3 4 , , 8 15 6 0 0 1 / 2,290 6,150 5,281 2,009 3,272 July................ 3,800 2,290 6,090 (4) 52,180 (4) 1970—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 Mar................ 4,300 2,360 6,660 (4) 2,798 (4) Aug.. .7 1.1 37.8 14.3 9.2 36.9 8,580 Apr................. 4,530 2,340 6,870 (4) 2,660 (4) Sept.. .6 1.1 45.5 12.0 8.9 31.9 8,900 Oct... .7 1.0 38.4 18.0 9.2 32.6 8,780 Nov.. 1.0 0.9 39.0 16.4 9.7 33.0 8,570 1 End-of-month data. Total amount of credit extended by member firms Dec.. .0 .3 47.0 13.7 9.5 29.4 8,140 of the N.Y. Stock Exchange in margin accounts, excluding credit extended on convertible bonds and other debt instruments and in special subscrip 1971—Jan. . .0 .4 55.1 12.5 8.4 23.6 8,180 tion accounts. Feb. . .0 .4 56.2 13.2 7.7 22.5 8,410 2 Figures are for last Wed. of month for large commercial banks re Mar.. .0 .5 58.4 12.7 6.7 21.6 8,820 porting weekly and represent loans made to others than brokers or dealers Apr.. .2 .4 60.6 12.1 6.0 20.7 9,200 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 tended by these firms. Beginning with June 30,1970, total broker-extended Note.—Adjusted debt is computed in accordance with requirements set margin credit is derived from reports by the majority of N.Y. Stock Ex forth in Regulation T and often differs from the same customer’s net debit 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 total debt owed by those customers whose combined accounts net to a SPECIAL MISCELLANEOUS ACCOUNT BALANCES debit. Free credit balances are in accounts of customers with no unfulfilled AT BROKERS, BY EQUITY STATUS OF ACCOUNTS commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers’ net debit and free credit balances since the latter are available for the brokers’ use (Per cent of total, except as noted) until withdrawn. Equity class of accounts EQUITY STATUS A O T F B M R A O R K G ER IN S ACCOUNT DEBT Net in debit status Total End of period credit balance (Per cent of total debt, except as noted) status 60 per cent Less than o ( f m d i o ll l i l o a n r s s ) or more 60 per cent Total Equity class (per cent) debt 54.0 35.9 10.2 4,140 (mil 50.3 38.8 10.9 4,840 E pe n r d i o o d f l d io o o n f l s 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er J J u u n ly e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 9 7 6 . . . 5 5 7 4 4 39 0 2 . . . 1 5 6 1 1 1 1 1 0 . . . 9 7 4 4 4 4 , , , 5 3 43 5 9 0 0 0 lars) i 46.6 44.5 9.0 4,480 46.2 43.9 9.9 4,430 1970— M Ap a r y .. . 4 4 , , 3 1 6 6 0 0 1 9 1 . . 6 8 1 18 5 . . 1 8 1 1 4 8 . . 5 3 1 13 4. . 2 8 1 13 1 . . 5 6 2 3 8 0 . . 6 2 4 4 5 8 . . 5 2 4 4 2 3 . . 3 9 1 9 0 . . 4 6 4 4 , , 2 0 4 30 0 J J u u n ly e . . . 3 3, , 8 8 0 6 0 0 8 8. . 1 3 1 15 2 . . 1 4 2 1 1 8 . . 1 8 1 1 5 6 . . 7 0 1 1 3 3 . . 5 8 2 3 5 1 . . 8 4 4 4 9 9. . 1 2 4 4 4 3. . 6 2 7 6 . . 2 7 4 4, ,2 3 6 8 0 0 S A O e u c p t g t . . . . . . . 3 4 3 , , ,8 9 0 1 2 1 0 0 0 1 1 9 0 1 . . . 9 7 4 1 1 1 5 8 5 . . . 1 3 2 2 2 2 2 4 5 . . . 9 5 4 1 1 1 6 6 6 . . . 6 7 9 1 1 1 3 3 4 . . . 1 6 3 2 1 1 1 6 8 . . . 1 2 0 4 4 6 8 . . 8 6 4 48 5 . . 1 5 5 5 . . 1 9 4 4 , , 5 4 0 0 0 0 Nov.. 4,010 10.4 14.8 26.1 17.5 14.1 17.2 Dec.. 4,030 11.0 16.1 27.1 16.8 13.5 15.5 Note.—Special miscellaneous accounts contain credit balances that may be used by customers as the margin deposit required for additional 1971—Jan. . 4,000 12.1 19.6 28.3 17.1 10.0 12.8 purchases. Balances may arise as transfers based on loan values of other Feb.. 4,090 11.4 19.5 31.1 16.3 9.3 12.3 collateral in the customer’s margin account or deposits of cash (usually M Ap ar r . . . . 4 4 , , 5 3 3 0 0 0 1 1 1 1 . . 8 8 2 2 0 0 . . 3 0 3 3 3 5 . . 0 0 1 1 5 6. . 2 0 7 6 . . 2 2 1 11 1 . . 7 8 sales proceeds) occur. i 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
JUNE 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 r B el a a n te k d Other1 r B el 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 r i o t 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—Apr.. 38,011 1,088 12,647 5,584 18,692 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—Feb.. 32,506 383 13,538 1,518 17,067 3,089 2,306 784 54 266 3,575 2,618 1,520 2,847 Mar.. 31,223 355 13,215 1,337 16,316 2,954 2,276 678 138 255 3,827 2,681 1,519 2,974 Apr.P 31,367 431 13,058 1,363 16,515 7,301 2,893 2,320 573 56 236 4,115 2,748 1,510 3,043 1 As reported by dealers; includes finance company paper as well as 2 As reported by finance companies that place their paper directly with other commercial paper sold in the open market. investors. MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 Total General classified by maturity End of period M ga o g r e t Other G U o .S vt . . S l a o t n c a a d te l C r a o a n r t d p e o Cash O as t s h e e t r s lia a t b i n e i d s li D i e t p s o 2 s l O ia t t i b h e i s e li r r c e o a s u e c n r v ts e (in months) govt. other1 g re e s n e e r r v a e l accts. 3 or 3-6 6-9 Over Total less 9 1960................ 26,702 416 6,243 672 5,076 874 589 40,571 36,343 678 3,550 1,200 1961................. 28,902 475 6,160 677 5,040 937 640 42,829 38,277 781 3,771 1 654 1962................ 32,056 602 6,107 527 5,177 956 695 46,121 41,336 828 3,957 2! 548 1963................. 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 1964................ 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965................ 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966................ 47,193 1,078 4,764 251 5,719 953 1 024 60,982 55,006 1,114 4,863 2,010 1967................. 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968................ 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1.034 1,166 3,011 1969................. 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970—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 5,726 619 322 302 688 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 Mar... 58,540 2,636 3,356 246 14,882 1,287 1,635 82,581 75,002 1,746 5,832 840 413 322 864 2,439 Apr.... 58,796 2,727 3,340 278 15,519 1,254 1,656 83,570 75,824 1,882 5,863 993 445 360 2,804 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 □ JUNE 1971 LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort Real Policy Other assets Total U St n a i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks gages estate loans assets Statement value: 1961. 126,816 11,896 6,134 3,888 1,874 55,294 49,036 6,2:58 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. 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—Feb.r.............................. 198,808 10,991 4,563 3,232 3,196 85,390 71,734 13,656 72,448 5,975 14,302 9,702 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 1971- 208,206 11,027 4,557 3,298 3,172 90,127 74,326 15,801 74,370 6,341 16,109 10,232 Feb................................. 209,885 11,126 4,632 3,319 3,175 91,038 74,696 16,342 74,437 6,453 16,220 10,611 i Issues of foreign governments and their subdivisions and bonds of Year-encl figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “Other assets.” SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o g r e t s I s i n m e t v i c e e e u s n s r t t i Cash Other2 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 d f r u i v e t n s e d s m r B o o w o n r e e d y 3 p L r o o in a ce n s s s Other d p M u er r a i i d o n e d g O e p u in n e t g r s d t i o a a o n d 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 1 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—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.............. 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............. 152,665 16,805 3,249 9,524 182,243 151,742 12,062 10,097 3,161 5,181 2,069 5,225 Mar.r........ 154,430 18,335 3,376 9,668 185,809 155,845 12,044 9,838 3,500 4,577 3,130 6,445 Apr.®......... 156,564 18,331 3,139 9,822 187,856 158,062 12,025 8,645 3,875 5,249 3,350 7,340 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
JUNE 1971 a FEDERALLY SPONSORED CREDIT AGENCIES A 39 MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a b A t n e e o d r m c s e s I m nv e e n s t t s p C a o d a n s e s i d t h s B n a o o n n t d e d s s M po b d e s e e m i r ts C s a to p c it k al M l g o ( a A a o g n r ) e t s D n t a e u ( o L b n r t d e e e ) s n s c L a o ( t o o t A i p a v o ) n e e s r s D t e u (L b re e ) s n c L o a d ( o u A n i a s n d n ) t s s D t e u ( b L re e ) s n M l g o ( a A a o g n r ) e t s B ( o L n ) ds 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—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 6,113 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... 10,539 2,658 84 10,090 1,499 1,598 14,702 14,702 1,973 1,601 4,972 4,818 7,137 6,395 Nov... 10,524 3,204 135 9,838 1,981 1,601 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... 9,926 4,187 105 9,182 3,094 1,619 15,552 15,111 2,164 1,819 5,177 4,959 7,258 6,645 Mar.. 9,689 4,322 116 8,756 3,425 1,628 15,420 15,122 2,153 1,819 5,380 5,077 7,347 6,645 Apr... 8,269 4,235 192 7,876 2,828 1,627 15,308 15,477 2,113 1,900 5,568 5,336 7,426 6,700 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, APRIL 30, 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 of dollars) Federal home loan banks1 Federal National Mortgage Federal intermediate Notes: Association—Cont. credit banks Debentures—Cont: Debentures: Bonds: 4/10/70 - 8/10/71___ 7.38 200 8/3/70- 5/3/71... 7.25 472 5/26/69 - - 5/25/71... 7.00 350 7/10/70 - 8/10/71___ 8.05 250 9/1/70-6/1/71... 7.30 282 5/25/70 - - 5/25/71. . . 8.20 500 9/11/61 - 9/10/71.... 4% 96 10/1/70 - 7/1/71. 7.10 547 2/25/70 - - 6/25/71... 8.45 586 9/10/68 - 9/10/71.... 53/4 350 11/2/70 - 8/2/71. 6.80 584 7/27/70 - - 7/27/71.. . m 433 6/10/70 - 10/21/71.. . 8.45 500 12/1/70 - 9/1/71 . 5.70 412 8/25/70 - - 8/25/71.. . 7.65 588 5/10/69 - 11/10/71... 6.85 350 1/4/71 - 10/4/71. 5.30 423 9/25/70 - - 9/27/71 . . . 7.35 338 3/10/70 - 12/10/71. .. 6% 500 2/1/71 - 11/1/71.. 4.55 676 10/27/69 - 11/26/71. 8.20 250 2/10/60 - 2/10/72. 5K 98 3/1/71 - 12/1/71. . 4.00 623 11/25/69 - 2/25/72.. 8.20 200 3/10/69 - 3/10/72___ 6 y4 250 4/1/71 - 1/3/72. .. 3.85 691 6/26/70 - ■ 2/25/72. .. 8.20 300 10/14/69 - 3/10/72... 6*4 200 3/2/70 - 3/1/73. . 8.15 203 5/25/70 - • 5/25/72. . . 8.15 200 12/11/61 - 6/12/72... 4^8 100 9/1/70-7/2/73... 7.75 200 9/25/70 - 11/27/72. . m 250 2/10/70 - 6/12/72___ 8.70 300 1/4/71 _ 7/1/74.. 5.95 224 2/25/70 - - 2/26/73. . . 8.35 350 5/11/70 - 9/11/72___ 8.40 400 3/25/71 - 5/25/73... . 4.20 400 6/10/70 - 9/11/72.... 7.40 200 Federal land banks 10/27/70 - 8/27/73... 7.20 450 11/10/69 - 12/11/72. . 8.00 200 Bonds: 1/26/70 - ■ 1/25/74... 8.40 300 10/13/70 - 12/11/72. . 7.20 400 2/15/57 - 2/15/67-72. 4^ 72 6/26/70 - • 2/25/74. . . 8.40 250 11/10/70 - 3/12/73. . . 7.30 450 5/1/56 - 5/1/71 .......... 3% 60 8/25/69 - ■ 8/25/74.. . 7.65 183 12/12/69 - 3/12/73... 8.30 250 7/15/69 - 7/20/71___ 8.15 270 11/25/69 - 11/25/74. 8.05 234 6/12/61 - 6/12/73. . .. 41,4 146 10/20/69 - 7/20/71... 8.45 232 1/26/71 - 2/25/75.... 6.10 250 7/10/70 - 6/12/73.... 8.35 350 10/20/68 - 10/20/71. . 6.00 447 8/25/70 - • 5/26/75 . . . 8.00 265 3/10/70 - 9/10/73___ 8.10 300 8/20/68 - 2/15/72. 5.70 230 7/27/70 - • 8/25/75. . . 7.95 300 12/10/70 - 12/10/73. . 5.75 500 2/23/71 - 4/20/72........ 4.45 300 12/18/70 - 11/25/75.. 6.50 350 4/10/70 - 3/11/74___ 7.75 350 6/22/70 - 7/20/72 8.20 442 3/25/70 - ■ 2/25/80. . . 7.75 350 8/5/70 - 6/10/74....... 7.90 400 9/14/56 - 9/15/72.... 3% 109 10/15/70- 10/15/80.. 7.80 200 9/10/69 - 9/10/74___ 7.85 250 9/22/69 - 9/15/72. 8.35 337 2/10/71 - 9/10/74........ 5.65 300 10/23/72 - 10/23/72. . 5K 200 Federal National Mortgage 5/10/71 - 12/10/74.... 6.10 250 7/20/70 - 1/22/73----- 7.95 407 Association— 11/10/70 - 3/10/75. . . 7.55 300 2/20/63 - 2/20/73-78. 4^ 148 Secondary market 4/12/71 -6/10/75........ 5.25 500 1/20/70 - 7/20/73.... 8.45 198 operations 10/13/70 - 9/10/75. . . 7.50 350 8/20/73 - 7/20/73....... 7.95 350 Discount notes................... 1,826 3/11/71 - 3/10/76........ 5.65 500 4/20/70 - 10/22/73. .. 7.80 300 Capital debentures: 2/13/62 - 2/10/77. 4y2 198 2/20/72 - 2/20/74.... 4% 155 9/30/68 - 10/1/73......... 6.00 250 12/10/70 - 6/10/77. . . 6.38 250 10/20/70 - 4/22/74. . . 7.30 354 4/1/70 - 4/1/75............. 8.00 200 5/10/71 -6/10/77........ 6.50 150 4/20/71 -4/20/72........ 4% 437 1/21/71 - 6/10/81.. .. 7.25 250 2/20/70 - 1/20/75. . .. 8^8 220 M De o 9 9 6 6 b r / / / / e t 1 1 2 9 g n / / 9 / 7 7 a t 7 / u 0 0 g 7 0 e r 0 - - - e - b s - 1 a : 6 6 1 0 c / / 0 / k 2 1 2 / e / / 1 / 7 7 d 7 / 1 5 9 2 b . . 0 . . . o . . . . . . . . n . . . . . . . . . d . . . . . . . . . s . . . . . . . : . . . . 7 8 8 8 . . . . 3 1 5 6 8 3 3 0 4 2 2 1 0 0 5 5 0 0 0 0 Ba D nk e 4 2 3 1 1 s b / / / 2 1 1 1 1 e f / / 2 0 1 o n 2 1 / / / r / 0 t 7 7 7 7 u / 1 1 c 1 0 7 r o e 0 - - - o - s 6 6 p : - 6 / / e 5 1 / 1 r 1 6 / a 0 1 3 / 0 t 1 / i / / / v 8 8 / 7 8 7 e 1 3 4 2 1 s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 6 5 6 . . . . . 2 7 6 7 7 5 5 5 0 0 2 2 2 3 3 5 7 0 0 4 1 0 3 0 0 4 4 2 2 2 7 5 / / / / / / / 2 2 2 2 2 2 2 0 3 1 0 0 0 /6 / / / / / / 7 7 6 6 6 6 6 1 1 7 6 5 6 - - - - - - - 4 4 1 / 4 2 7 / 1 2 2 0 / / / / 0 0 / 2 2 2 2 2 / / 1 4 0 2 8 7 1 / / / / 1 8 / 7 7 7 7 7 . . . . 5 6 6 9 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6 5 5 5 5 5 . . . K . ^ ^ 7 0 3 0 0 0 0 0 2 2 2 3 1 1 1 8 2 0 2 0 5 5 5 4 3 0 0 0 0 11/10/69 - 5/10/71. 8.20 400 1/4/71 - 7/1/71 .......... 5.25 335 4/10/69 - 6/10/71. . 6.85 250 2/1/71 -8/2/71............ 4.50 420 12/12/69 - 7/12/71. 8.60 400 4/1/71 - 10/4/71.......... 3.70 331 8/23/60 - 8/10/71.. 4K 63 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 □ JUNE 1971 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 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 notes 3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 196 7 149,552 153,201 5,053 158,254 -8,702 6,314 5,079 5,035 4,000 -482 2,838 -5,222 304 945 196 8 153,671 172,802 6,030 178,833 -25,161 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 -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 1,364 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—Ap r r22,006 *■17,828 201 r18,029 "3,975 -4,813 -39 -285 123 -4,691 85 r161 r961 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 Mar........ 13,205 18,328 318 18,646 -5,441 1,003 518 522 324 675 -3,370 57 1,453 Apr......... 21,024 17,769 49 17,818 3,206 223 -345 221 -71 -271 4,365 527 1,957 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 e s 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 te s c s s ia : 3 l E p T h q u b o e b u y l t l d a a i l l c s: s c p p o G r o N r i n o v p o s v a 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—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 21,71.7 825 298,113 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 '38,693 Feb............. 1,064 6,725 109 7,898 390,664 12,503 78,843 21,461 825 302,038 38,183 Mar.............. 858 3,561 109 4,528 391,668 13,021 79,366 21,784 825 302,713 37,814 Apr............... 1,322 7,462 109 8,893 391,891 12,676 79,586 21,714 825 302,442 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
JUNE 1971 o FEDERAL FINANCE A 41 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C nc o o rp m o e r a ta ti x o e n s So a c n ia d l c in o s n u t r r a ib n u c t e i o t n ax s es Period Total W he it ld h N w h i e 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 p o t s s s fu R n e d s c E o P r n m t a o a t y l p x r l i e l b o s y u a m t S n i e o e d l n n f - s t 1 i e n U m s n u p r - l. . c O e n r i t p h e 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 ip i e s t c s . 3 taxes empl. Fiscal year: 1967............................................... 149,552 50,521 18,850 7,845 61,526 34,918 94626,047 1,776 3,659 1,867 33,349 13,719 1,901 2,978 2,108 1968............................................... 153,671 57,301 20,951 9,527 68,726 29,897 1,232 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 1969............................................... 187,784 70,182 27,258 10,191 87,249 38,338 1,660 32,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,908 1970............................................... 193,743 77,416 26,236 13,240 90,412 35,037 2,208 37,190 1,942 3,465 2,700 45,298 15,705 2,430 3,644 3,424 Half year: 1969—Jan.-June.................... 104,886 36,446 21,743 9,715 48,474 22,844 876 17,577 1,584 2,039 1,174 22,374 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.................... 102,910 38,619 20,465 12,759 46,325 19,858 1,226 20,134 1,811 2,196 1,416 25,558 7,464 1,168 2,148 1,615 July-Dee....................... 87,562 37,445 5,569 565 42,449 12,744 1,467 17,768 133 1,348 1,576 20,826 8,152 1,317 1,537 2,005 Month: 1970—Apr.................................. r22,005 r5,740 8,992 r4,056 10,677 4,895 r301 2,847 1,081 234 r229 r4,390 1,226 207 599 r313 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 Mar................................. 13,205 6,605 1,392 4,631 3,366 3,887 363 3,472 152 77 288 3,990 1,443 226 329 328 Apr.................................. 21,024 5,939 7,951 4,261 9,630 4,360 345 3,294 1,085 301 290 4,970 1,351 221 589 248 Budget outlays4 Period Total t f i e N o d n n e a s a e l a I f n fa t i l r . s s S e p r a e a r c c e h A c tu g u r r l e i so N u u r r a e r a t c l es m t C r a a o e n r n m d c s e p . d h e C o m a v u o n e u s m l d n i o n . - p g . E p m t d o a i w n a u o d n n c e a r w H e a e l n a fa d lt r h e e V ra e n t s In e t s e t r g G e o r e v a n t l . t t I g i r n a o o a t c v n r n a t s s . - 5 Fiscal year: 196 7 158,254 70,081 4,547 5,423 4,376 1,821 7,594 2,616 5,853 37,885 6,897 12,588 2,510 -3,936 196 8 178,833 80,517 4,619 4,721 5,943 1,655 8,094 4,076 6,739 43,780 6,882 13,744 2,561 -4,499 196 9 184,548 81,232 3,785 4,247 6,221 2,081 7,921 1,961 6,525 49,395 7,640 15,791 2,866 -5,117 197 0 196,588 80,295 3,570 3,749 6,201 2,480 9,310 2,965 7,289 56,785 8,677 18,312 3,336 -6,380 197 1 212,755 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 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—Ap r r18,039 '6,804 336 332 107 iso r973 280 642 5,996 750 rl,633 275 -278 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—Ja............n 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 Mar........ 18,646 6,674 392 333 -52 230 1,000 206 912 6,139 964 1,709 399 -260 Apr......... 17,818 6,337 328 252 -21 250 1,015 286 683 6,093 883 1,683 323 -294 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 □ JUNE 1971 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p g u r b o l s i s c Marketable Con Nonmarketable i S ss p u e e c s ia 4 l debt i Total Total Bills C c e a r t t e if s i Notes Bonds; 2 b v i o b e n l r e d t s bo S in n a g v d s s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1962—Dec. 303.5 255.8 203.0 48.3 22.7 53.7 78.4 4.0 48.8 47.5 43.4 1963—Dec. 309.3 261.6 207.6 51.5 10.9 58.7 86.4 3.2 50.7 48.8 43.7 1964—Dec. 317.9 267.5 212.5 56.5 59.0 97.0 3.0 52.0 49.7 46.1 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—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 Apr.. 391.9 310.4 245.9 87.5 104.3 54.1 2.4 62.1 53.2 79.7 May, 396.8 313.2 245.6 89.1 102.5 54.0 2.3 65.2 53.4 81.7 1 Includes non-interest-bearing debt (of which $627 million on May 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 l c ag G t U a e r o n n u .S v c d s t i . t . es B F a . n R k . s Total m C b e a o r n c m k ia s l M s b a a v u n i t n u k g a s s l p I c a n a o n s n m c u ie e r s r c O a o t t r i h o p e n o r s g S l a o o t n c v a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o t n e e n d i r g a n l 1 O i m n to v t i r h s e s c e s . r 2 funds bonds securities 1939—Dec............... 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 1962—Dec............... 303.5 53.2 30.8 219.5 67.1 6.0 11.5 18.6 20.1 47.0 19.1 15.3 14.8 1963—Dec............... 309.3 55.3 33.6 220.5 64.2 5.6 11.2 18.7 21.1 48.2 20.0 15.9 15.6 1964—Dec............... 317.9 58.4 37.0 222.5 63.9 5.5 11.0 18.2 21.1 49.1 20.7 16.7 16.3 1965—Dec................ 320.9 59.7 40.8 220.5 60.7 5.3 10.3 15.8 22.9 49.7 22.4 16.7 16.7 1966—Dec................ 329.3 65.9 44.3 219.2 57.4 4.6 9.5 14.9 24.3 50.3 24.3 14.5 19.4 1967—Dec............... 344.7 73.1 49.1 222.4 63.8 4.1 8.6 12.2 24.1 51.2 22.8 15.8 19.9 1968—Dec................ 358.0 76.6 52.9 228.5 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—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 28.8 22.9 20.1 Mar............... 391.7 98.8 64.2 228.7 61.2 2.8 6.8 11.0 22.6 52.5 27.5 25.4 18.9 Apr................ 391.9 99.1 63.7 229.1 60.2 2.8 6.8 10.0 22.0 52.8 26.5 29.2 19.0 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
JUNE 1971 □ 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 1-5 5-10 10-20 Over years years years 20 years Total Bills Other All 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—Mar. 31........................................................ 247,457 114,940 88,977 25,963 86,024 27,199 8,513 10,780 Apr. 30........................................................ 245,888 113,466 87,504 25,962 85,990 27,199 8,491 10,742 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—Mar. 31................................................ 17,379 2,654 847 1,807 6,217 4,289 1,774 2,445 Apr. 30................................................ 17,409 2,603 862 1,741 6,248 4,339 1,775 2,445 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—Mar. 31................................................ 64,160 33,416 26,709 6,707 23,699 6,178 312 555 Apr. 30................................................ 63,721 32,964 26,321 6,643 23,735 6,141 316 564 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—Mar. 31................................................ 165,918 78,870 61,421 17,449 56,108 16,732 6,427 7,780 Apr. 30................................................ 164,758 77,899 60,321 17,578 56,007 16,719 6,400 7,733 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—Mar. 31........................................ 49,836 15,966 9,239 6,727 26,684 6,553 354 279 Apr. 30........................................ 48,713 14,697 8,146 6,551 26,914 6,495 355 252 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—Mar. 31........................................ 2,813 442 201 241 1,149 519 322 381 Apr. 30........................................ 2,815 438 197 241 1,131 534 332 380 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—Mar. 31........................................ 5,883 784 438 346 1,568 944 1,395 1,193 Apr. 30........................................ 5,848 699 375 324 1,577 999 1,395 1,178 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—Mar. 31........................................ 3,684 2,249 2,050 199 1,208 219 2 6 Apr. 30........................................ 3,041 1,653 1,486 167 1,157 181 5 44 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—Mar. 31........................................ 3,400 717 449 268 1,750 487 216 232 Apr. 30........................................ 3,321 679 450 229 1,692 519 205 226 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—Mar. 31........................................ 11,649 5,629 4,562 1,067 2,427 958 1,138 1,497 Apr. 30........................................ 11,353 5,635 4,621 1,014 2,280 910 1,067 1,461 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—Mar. 31........................................ 88,653 53,083 44,482 8,601 21,322 7,052 3,000 4,192 Apr. 30........................................ 89,667 54,098 45,046 9,052 21,256 7,081 3,041 4,192 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 5,695 commercial banks, 491 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 743 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “Allothers.” Comparable data the 468 nonfinancial corporations and 487 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 503 State and local govts. Data complete for U.S. Govt, agencies and trust funds and F.R. Banks “All others,” a residual, includes holdings of all those not reporting but for other groups are based on Treasury Survey data. Of total mar- in the Treasury Survey, including investor groups not listed separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 44 U.S. GOVERNMENT SECURITIES □ JUNE 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.S. Govt, Other m b e a r n c k ia s l other securities 1970—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............................... 3,316 2,291 579 397 49 1,178 145 1,232 760 679 Mar.............................. 3,072 2,122 506 388 57 1,036 143 1,204 688 567 Apr.............................. 2,458 1,881 328 216 33 828 116 878 636 516 Week ending— 1971—Apr. 7....................... 2,633 1,960 354 290 29 848 143 966 676 502 14....................... 2,736 1,972 449 268 48 931 161 967 677 612 21....................... 2,134 1,681 303 125 25 755 89 827 463 297 28....................... 2,062 1,691 171 169 33 638 69 723 631 654 May 5....................... 3,111 2,211 671 192 37 1,104 127 952 929 448 12....................... 2,019 1,464 346 178 31 755 97 624 542 368 19....................... 2,232 1,539 386 282 27 778 109 703 643 474 26....................... 2,378 1,866 307 179 26 913 88 811 566 597 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. Govt. Period All Corpora All Period m t A a ie t l u s l ri W y i e 1 t a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a se g t c e ie u n s r c i y sources Y N C o e it w r y k w E h ls e e r e tions i other 1970—Apr................ 4,507 4,228 107 164 8 705 1970—Apr............ 4,922 1,293 1,373 546 1,710 May............... 2,668 1,886 461 306 16 654 May.......... 2,898 637 830 466 964 June............... 2,199 1,859 111 227 2 615 June.......... 2,310 422 626 421 842 July............... 3,267 3,102 -18 171 13 828 July........... 3,214 855 770 518 1,071 Aug................ 4,474 3,389 454 604 27 819 Aug........... 4,900 1 ,526 1,168 834 1,373 Sept................ 4,020 3,326 246 433 16 724 Sept........... 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 Nov........... 5,149 1,517 1,527 416 1,689 Dec................ 5,571 4,399 612 485 76 1,049 Dec............ 5,949 1,868 1,960 379 1,742 1971—Jan.................. 5,634 4,626 525 403 80 966 1971—Jan............. 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 Mar................ 4,421 3,511 437 404 70 981 Mar........... 4,543 1,356 926 399 1,862 Apr................ 4,870 4,019 415 416 20 1,118 Apr............ 5,700 1,759 1,415 724 1,802 Week ending— Week ending— 1971—Mar. 3.......... 4,532 3,714 336 431 51 927 1971—Mar. 3.... 4,721 1,567 1,210 240 1,704 10.......... 4,487 3,626 361 443 58 820 10.... 4,839 1,599 1,287 458 1,494 17.......... 4,201 3,307 389 430 75 913 17.... 4,599 1,143 784 371 2,300 24.......... 3,617 2,613 539 375 89 1,076 24.... 4,111 1,297 728 415 1,670 31.......... 5,300 4,357 515 362 65 1,161 31.... 4,547 1,293 803 414 2,038 Apr. 7.......... 6,478 5,465 536 432 44 1,247 Apr. 7.... 6,473 1,899 1,749 603 2,222 14.......... 5,123 4,310 417 385 13 1,141 14.... 6,706 2,083 2,074 703 1,847 21......... 4,567 3,757 394 404 13 1,050 21.... 5,583 1,881 1,163 808 1,731 28......... 3,878 3,060 382 424 12 1,108 28.... 4,347 1,178 831 810 1,529 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
JUNE 1971 □ GOVERNMENT SECURITIES A 45 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, MAY 31, 1971 (In millions of dollars) Issue and coupon rate Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. ’reasury notes—Cont. Treasury bonds—Cont May 31, 1971............... ,701 Oct. 31, 1971.... 1.701 Apr. 1, 1973 ,.•1% 34 Sept. 15, 1967-72..2% 1,951 June 3, 1971............... ,300 Nov. 4, 1971.... 1.400 May 15, 1973.....734 5,843 Dec. 15, 1967-72..21/2 2,562 June 10, 1971............... 301 Nov. 11, 1971. . . . 1.400 Aug. 15, 1973 . •8 Vs 1,839 Aug. 15, 1971 4 2,806 June 17, 1971............... ,301 Nov. 18, 1971. ... 1,402 Oct. 1, 1973 ■Wi 30 Nov. 15, 1971.....37/s 1,087 June 22, 1971f.............. ,515 Nov. 26, 1971. .. . 1.400 Feb. 15, 1974 , .734 3,141 Feb. 15, 1972 .,, ,4 979 June 24, 1971................ ,303 Nov. 30, 1971 1.702 Apr. 1, 1974,,...11/2 34 Aug. 15, 1972 ,. 4 2,579 June 30, 1971............... ,702 Dec. 31, 1971.... 1.702 May 15, 1974 ,,, .71/4 4,507 Aug. 15, 1973 ,. ,4 3,894 July 1, 1971............... ,302 Jan. 31, 1972.... 1,700 Aug. 15, 1974 ,., .55/8 10,284 Nov. 15, 1973 , • 41/s 4,344 July 8, 1971................ 402 Feb. 29, 1972.... 1,201 Oct. 1, 1974.,.,.1 Vi 42 Feb. 15, 1974 • 41/s 3,126 July 15, 1971................ 408 Mar. 31, 1972. ... 1,200 Nov. 15, 1974 .534 7,211 May 15, 1974.....414 3,579 July 22, 1971................ 402 Apr. 30, 1972. . . . 1,200 Feb. 15, 1975,,.,.53/4 5,148 Nov. 15, 1974....•37/s 2,238 July 29, 1971................ 401 Apr. 1, 1975___.1% 8 May 15, 1975-85..414 1,212 July 31, 1971............... 703 May 15, 1975 .6 6,760 June 15, 1978-83..314 1,536 Aug. 5, 1971................ 406 Aug. 15, 1975., ,-5J4 7,683 Feb. 15, 1980,,.. .4 2,591 Aug. 12, 1971................ 400 Oct. 1, 1975 .1% 31 Nov. 15, 1980.....31/2 1,904 Aug. 19, 1971................ ,404 Treasury notes Feb. 15, 1976,,.. ■6V4 3,739 May 15, 1985.....314 1,057 Aug.26, 1971................ 503 Aug. 15, 1971, ,...8^ 2,257 Apr. 1, 1976, • 1 Vi 2 Aug. 15, 1987-92..414 3,805 Aug. 31, 1971............... 704 Oct. 1, 1971. • • • 1 Vi 72 May 15, 1976 , .61/2 2,697 Feb. 15, 1988-93..4 247 Sept. 2, 1971................ 401 Nov. 15, 1971, ...53/8 963 Aug. 15, 1976. .71/2 4,194 May 15, 1989-94.• 41/s 1,551 Sept. 9, 1971................ 401 Nov. 15, 1971., ,...7% 5,836 Feb. 15, 1977.... .8 5,163 Feb. 15, 1990 , .3Vi 4,668 Sept. 16, 1971................ 401 Feb. 15, 1972..,...43* 797 Aug. 15, 1977.,.,.734 2,263 Feb. 15, 1995.... .3 1,201 Sept.23, 1971................ 602 Feb. 15, 1972..,■••7 % 2,684 Feb. 15, 1978.,, .61/4 8,387 Nov. 15, 1998,,, .3Vi 3,894 Sept.30, 1971............... 303 Apr. 1, 1972 ,••1% 34 Oct. 7, 1971................ 601 May 15, 1972 ,...43^ 5,310 Oct. 14, 1971................ 600 May 15, 1972 ,,..634 2,037 Convertiblebonds Oct. 21, 1971................ 401 Aug. 15, 1972..........5 3,432 'reasury bonds Investment Series B Oct. 28, 1971................ 401 Oct. 1, 1972 .-.1 % 33 June 15, 1967-72..21/2 1,232 Apr. 1, 1975-80.• 234 2,348 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv Special ered3 Total G o e b a n l l e i r R n e u v e e HAAl G l U o o a . v S 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 tie ti s l 4 H in o g u s 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. 196 3 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,396 196 4 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 2,838 196 5 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 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9.269 6.517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 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—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 13 290 531 1,102 1,923 532 123 380 68 821 Nov.. 1,748 892 753 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 1971—Jan". 2,702 1,611 968 121 2 577 1,135 990 2,691 508 390 428 373 992 Feb r. 1,833 1,225 600 7 585 610 638 1,817 518 133 315 123 727 Mar.. 2,107 1,299 806 1 417 628 1,062 2,097 549 181 623 28 716 Apr. . i ,r— 1,338 545 5 440 492 958 1,845 501 66 462 19 797 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 □ JUNE 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 Other5 Total Total P o u ff b e l r ic e l d y P p ri l v a a c t e e d ly Preferred Common 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 17,762 949 38,944 30,264 25,384 4,880 1,388 7,292 1970—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.r 7,438 436 1,050 2,614 223 3,115 2,627 2,033 594 76 413 Feb.r....... 6,522 431 1,224 1,823 44 3,000 2,476 2,201 275 100 424 Mar.......... 11,069 517 1,300 2,104 1,073 6,075 4,782 4,135 647 311 982 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—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 1 204 151 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 r................................. 647 69 259 239 167 608 68 391 555 112 Feb.r................................. 644 17 72 112 89 1 752 317 672 11 248 66 Mar.................................... 2,123 294 289 186 160 1 895 557 481 52 834 204 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
JUNE 1971 o 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 n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 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 1 Re ti d o e n m s p s N al e e t s Total 2 po C si a ti s o h n 3 Other Sales 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 i h on3 Other 1958.............. 1,620 511 1,109 13,242 634 12,608 1970—Apr... 371 306 65 42,785 3,909 38,876 1959.............. 2,280 786 1,494 15,818 860 14,958 May.. 304 300 4 39,824 4,042 35,782 1960.............. 2,097 842 1,255 17,026 973 16,053 June.. 364 197 167 38,459 4,396 34,230 July... 306 193 113 40,714 4,817 35,897 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Aug... 311 167 144 42,452 4,794 37,658 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Sept... 357 218 139 44,353 4,593 39,760 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Oct.. . 420 243 177 43,567 4,377 39,190 Nov... 343 215 128 45,223 4,126 41,097 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 Dec.. . 467 307 160 47,618 3,649 43,969 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 1971—Jan.... 487 242 245 50,251 3,663 46,588 Feb.. . 349 322 27 51,300 3,600 47,700 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Mar... 468 425 43 53,618 3,328 50,290 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Apr... 547 394 153 55,883 3,046 52,837 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 1 Includes contractual and regular single purchase sales, voluntary 3 Cash and deposits, receivables, all U.S. Govt, securities, and other and contractual accumulation plan sales, and reinvestment of invest short-term debt securities, less current liabilities. ment income dividends; excludes reinvestment of realized capital gains dividends. Note.—Investment Company Institute data based on reports of mem 2 Market value at end of period less current liabilities. bers, which comprise substantially all open-end investment companies registered with the Securities and Exchange Commission. Data reflect newly formed companies after their initial offering of securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 48 BUSINESS FINANCE □ JUNE 1971 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 1965 1966 1967 1968 1969 III IV IV Manufacturing Total (177 corps.): Sales............................................................ 177,237 195,738 201,399 225,740 243,449 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 3,289 743 751 763 825 812 820 849 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, 24,494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 ,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 ,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,' " 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,' 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,S ~~ 3,002 3,186 863 641 764 733 873 707 827 779 Dividends...................... 1,838 1,938 2,066 2,201 2,299 539 555 543 565 580 577 561 581 Telephone: Operating revenue. . 11,320 12,420 13,311 14.430 16,057 3,486 3,544 3,629 3,771 3,853 3,975 4,044 4,185 Profits before taxes. 3,185 3,537 3,694 3,951 4,098 971 989 990 1,001 1 ,070 1,043 979 1,006 Profits after taxes... 1,718 1,903 1,997 1,961 2,080 525 441 493 502 540 523 497 520 Dividends...................... 1,153 1,248 1,363 1,428 1,493 351 318 396 363 368 371 373 381 1 Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federal Reserve to include accounting methods and other reporting procedures. affiliated nonelectric operations. 2 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis 3 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts. of American Telephone and Telegraph Co.) published reports of companies. and for two affiliated telephone companies. Dividends are for the 20 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
JUNE 1971 □ BUSINESS FINANCE A 49 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h s t U r p i r b n o u d f t i i e t s s d co c a n a l t l i s p o o u i w n 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 t n a l i l s o p o u n i w t m a l p ances1 ances 1 1963.............. 59.4 26.3 33.1 16.5 16.6 31.8 1969—III.. . 89.9 42.1 47.9 25.0 22.9 50.1 1964.............. 66.8 28.3 38.4 17.8 20.6 33.9 IV... 88.5 41.4 47.1 25.2 21.9 51.0 1965.............. 77.8 31.3 46.5 19.8 26.7 36.4 1966.............. 84.2 34.3 49.9 20.8 29.1 39.5 1970—1 ... 82.6 38.0 44.6 25.2 19.4 52.0 II.... 82.0 38.1 43.9 25.1 18.8 53.0 1967.............. 79.8 33.2 46.6 21.4 25.3 43.0 III... 84.4 38.9 45.4 25.4 20.0 54.0 1968.............. 88.7 40.6 48.2 23.3 24.9 46.5 IV... 76.3 34.8 41.4 25.1 16.3 55.0 1969.............. 91.2 42.7 48.5 24.7 23.9 49.8 1970.............. 81.3 37.5 43.8 25.2 18.6 53.5 1971— ... 86.4 38.9 47.5 25.8 21.7 56.2 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—11....................... 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 IV..................... 217.0 572.1 56.9 9.7 4.2 268.1 194.4 38.8 355.2 6.6 244.5 15.9 88.1 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 bl e Mining R ro a a i d l Air Other Electric and G a o s th er n C i o c m ati m on u s Other1 A T (S o . . R A ta . . ) 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 r................... 81.85 14.67 15.93 1.99 1.73 1.82 1.45 12.89 2.43 11.23 17.71 1969—III............... 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—1.................. 17.68 3.11 3.58 .49 .34 .34 .28 2.70 .41 2.50 3.94 79.32 II2 r............. 20.80 3.68 3.98 .52 .50 .61 .41 3.30 .60 7.21 82.38 Ill2............. 20.68 3.68 4.01 .49 .45 .36 .40 3.25 .77 7.26 82.83 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 □ JUNE 1971 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s 2 1- to 4-family houses4 com M m u e l r t c if ia a l m p i r ly o p a e n r d ti es 5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l tu F i t n c i i n i o s a a t n l i n s 1 a U c g i . e e S n s . v o I i t a n d h n u d e d a i r l s s h e A o r l l s d l tu F i t n i c i n i o s a a t n l i n s 1 O h e o t r h l s d e 3 r h A e o r l l s d l Total tu F i t n i i n o s a t n i n s . 1 O h e o t r h l s d e r Total tu F i t n i i n o s a t n i n s . 1 O h e o t r h l s d er F w u H V n ri d A A t e te - — r n - t C i v o e o n n n a l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 .... 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 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—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—I.... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 II. .. 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.5 123.4 101.0 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—1.... 429.4 340.8 28.6 60.0 29.8 9.8 20.0 399.6 268.5 223.8 44.7 131.0 107.1 23.9 101.9 297.9 II'.. 435.6 344.6 30.0 61.0 30.3 9.8 20.5 405.2 271.7 225.7 46.0 133.5 109.1 24.5 103.2 302.3 III'. 443.1 349.8 31.3 62.0 30.8 10.0 20.9 412.3 275.8 228.5 47.3 136.5 111.4 25.1 106.8 305.5 IV'. 451.1 356.2 32.2 62.7 31.2 10.1 21.1 419.9 279.7 231.6 48.1 140.2 114.5 25.7 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 i Mutual savings bank holdings ' Residential Residential End of period Other Other Total non Farm Total non Farm FHA- VA- Con farm FHA- VA- Con farm Total in guar- ven Total in guar- ven sured anteed tional sured anteed tional 1941............................... 4,906 3,292 1,048 566 4,812 3,884 900 28 1945............................... 4,772 3,395 856 521 4,208 3,387 797 24 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966............................... 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968............................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1968—1......................... 60,119 38,157 7,694 2,674 27,789 18,396 3,566 51,218 45,171 15,179 11,872 18,120 5,931 116 II....................... 61,967 39,113 7,678 2,648 28,787 19,098 3,756 51,793 45,570 15,246 11,918 18,406 6,108 115 Ill...................... 63,779 40,251 7,768 2,657 29,826 19,771 3,757 52,496 46,051 15,367 11,945 18,739 6,329 116 IV....................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1......................... 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II....................... 69,079 43,532 8,060 2,743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19,898 6,908 117 Ill...................... 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV....................... 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1......................... 70,854 44,568 7,888 2,496 34,184 22,248 4,038 56,394 48,874 15,865 12,105 20,904 7,413 107 Up..................... 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,880 49,260 15,931 12,092 21,237 7,519 101 Ill'.................... 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21,654 7,671 103 IV....................... 73,275 45,640 7,919 2,589 35,131 23,284 4,351 '57,948 '49,937 16,087 12,008 21,842 7,893 119 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
JUNE 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 r755 346 '6,052 nil 69,973 64,172 r12,469 5,954 '45,749 5,801 1969'............................................ 7,531 6,943 663 220 6,108 537 72,027 66,254 12,271 5,701 48,282 5,773 1970—Feb.r................................. 597 573 27 7 545 24 72,448 66,756 11,674 5,666 49,416 5,692 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 1971—Jan..................................... 448 423 17 7 399 25 74,370 68,779 11,383 5,368 52,028 5,591 Feb.................................... 449 425 17 5 407 24 74,437 68,871 11,338 5,346 52,187 5,566 i 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 s’ Period h N o e m w e Home FHA- VA- Con Total t S e h rm or t i t L e o rm ng 2 Total i con pur Total 2 in- guar- ven struc chase sured anteed tional tion 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 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 1970....................... 3,256 1,929 10,615 3,081 7,534 2,331 1968.............. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1969 '........... 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1970—Mar............ 136 388 9,745 8,501 1,243 985 1970.............. 21,387 4,150 10,239 150,562 10,195 8,507 131,860 Apr............. 393 278 9,860 7,721 2,138 1,108 May........... 240 92 10,008 7,031 2,997 1,188 1970—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 '127,403 Oct.'.......... 134 119 10,539 3,265 7,274 1,496 Aug... 2,111 369 1,147 145,296 9,011 8,050 '128,234 Nov.'......... 112 126 10,524 3,156 7,368 1,978 Sept... 2,183 388 1,100 146,418 9,224 8,115 129,079 Dec............. 224 134 10,615 3,081 7,534 2,331 Oct.... 2,127 406 1,032 147,570 9,441 8,230129,903 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.. . 2,474 416 968 150,56010,195 8,507 131,860 Feb............. 27 428 9,926 2,697 7,230 3,093 Mar............ 30 266 9,690 2,814 6,876 3,423 1971—Jan.'.. 1,667 307 752 151,503 10,473 8,673 132,357 Feb.'. 1,887 346 818 152,665 10,810 8,766 133,089 Mar... 2,785 520 1,137 154,40011,168 8,920 134,312 1 Secured or unsecured loans maturing in 1 year or less. 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. 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 □ JUNE 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 G un o d v e e r r w nm rit e t n e t n - Con E pe n r d io o d f Total F in i c n i s a a t l i n h O ol t d h e e r r s Total F in i c n i s a a t l i n h O ol t d h e e r r s End of period Total Total F su H in r A e d - an g V t u e A a e r - d - i ti v o e n n a l tutions tutions 1 1 1 9 9 9 6 4 4 1 5 . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 4 4 1 . . . 3 2 2 1 1 1 7 5 4 6 . . . 7 7 9 3 9 8 4 . . .5 4 6 2 5 5 9 . . . 9 7 0 2 3 3 0 . . . 6 7 5 2 2 8. . . 3 2 2 1 1 1 9 9 9 6 6 54 4 3 . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 1 1 1 9 8 8 2 7 . . . 6 6 2 6 6 4 9 5 . . . 3 2 9 3 3 4 8 5 . . . 1 3 0 3 3 0 0 . . . 9 2 9 1 1 1 1 2 4 6 8 . . . 3 3 3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 1965............................... 212.9 73.1 42.0 31.1 139.8 1 1 1 9 9 9 6 6 6 7* 6 5 . ............ 2 2 2 5 6 8 0 0 4 . . . 1 0 0 2 2 23 1 23 3 6 . . . 2 7 6 4 4 3 0 3 6 . . . 3 9 4 4 4 3 0 3 7 . . . 3 9 2 2 3 3 9 1 4 . . . 5 0 7 9 8 8 . . . 2 8 2 1 1 1 9 9 9 6 6 6 6 7 8 * * .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 23 2 5 6 3 1 . . . 1 6 2 7 7 8 6 9 3 . . . 1 8 9 5 4 4 4 0 7 . . . 8 4 6 3 3 3 1 2 3 . . . 3 5 2 1 1 1 5 4 6 6 7 7 . . . 1 6 4 1968*............. 298.6 250.8 47.8 47.3 37.7 9.6 1968—1.......................... 239.1 81.0 48.1 32.9 158.1 1968—I V 298.6 250.8 47.8 47.3 37.7 9.6 II......................... 2 2 4 4 3 7 . . 2 0 8 8 2 3 . . 1 2 4 4 8 9 . . 7 6 3 33 3 . . 6 4 1 1 6 6 1 3 . . 1 8 1969—............1 303.0 254.4 48.6 48.3 38.4 9.9 IV....................... 251.2 84.4 50.6 33.8 166.8 I I II I V I 3 3 3 0 1 1 4 8 9 . . . 1 9 0 2 2 2 6 5 6 2 9 5 . . . 7 3 0 4 5 5 9 1 4 . . . 6 4 0 5 5 4 0 2 9 . . . 6 2 4 4 4 39 0 1 . . . 3 3 2 1 1 1 0 0 0 . . . 1 9 4 1969— I 1 l .. l . . . . . . .. . . .. .. . . . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . 2 2 2 5 6 5 4 3 9 . . . 8 5 5 8 8 8 5 7 8 . . . 1 3 8 5 5 5 1 3 2 . . . 4 4 2 3 3 3 3 4 5 . . . 9 9 4 1 1 1 6 7 7 9 2 4 . . . 5 3 6 1970— 1 321.7 265.9 55.8 53.2 42.9 10.3 IV....................... 266.8 90.1 54.5 35.6 176.9 I I I V l I l . * . * .. . . . . . . . . . . . 3 3 3 2 3 3 6 1 7 . . . 3 8 6 2 2 2 6 7 7 8 2 7 . . . 9 8 3 5 6 5 0 9 7 . . . 3 0 4 5 5 5 6 4 7 . . . 1 5 9 4 4 4 4 3 5 . . . 2 2 7 1 1 1 1 1 2 . . . 3 9 2 1970— I I 1 l I . l . . . * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 6 7 7 8 1 5 . . . 5 7 8 9 9 92 5 1 . . . 1 1 6 5 5 5 8 6 5 . . . 1 1 6 3 3 3 6 7 6 . . . 0 0 0 1 1 1 7 7 8 7 9 0 . . . 1 9 7 IV*..................... 279.7 i Structures of five or more units. 1 Includes outstanding amount of VA vendee accounts held by private Note.—Based on data from same source as for “Mortgage Debt Out investors under repurchase agreement. standing” table (second preceding page). 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 Period Prop Loans not in foreclosure Pro erty but delinquent for— Loans in Total h N om ew es h is o E t m i x n e g s jects i m pr i e m o n v t e s 2 Total3 h N om ew es h is o E t m i x n e g s End of period Total 30 days 60 days o 9 r 0 m da o y r s e cl f o o s r u e r e 1945............ 665 257 217 20 171 192 1964............ 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1963............... 3.30 2.32 .60 .38 .34 1964............... 3.21 2.35 .55 .31 .38 1965............ 8,689 1,705 5,760 591 634 2,652 876 1,774 1966............ 7,320 1,729 4,366 583 641 2,600 980 1,618 1965............... 3.29 2.40 .55 .34 .40 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1966............... 3.40 2.54 .54 .32 .36 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1967............... 3.47 2.66 .54 .27 .32 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1968............... 3.17 2.43 .51 .23 .26 1969............... 3.22 2.43 .52 .27 .27 1970............ 11,908 2,667 5,447 3,178 617 3,442 1,311 2,131 1966—IV___ 3.40 2.54 .54 .32 .36 1970—May. 943 176 351 367 48 238 98 140 June. 1,097 218 478 336 64 263 99 164 1967—1.......... 3.04 2.17 .56 .31 .38 July.. 1,087 230 475 319 62 298 109 189 II........ 2.85 2.14 .45 .26 .34 Aug.. 1,030 247 504 228 49 306 107 199 III. 3.15 2.36 .52 .27 .31 Sept.. 1,099 268 521 247 63 326 110 216 IV___ 3.47 2.66 .54 .27 .32 Oct... 1,218 304 564 292 57 341 117 224 Nov.. 1,055 273 497 240 45 318 106 212 1968—1.......... 2.84 2.11 .49 .24 .32 Dec.. 1,286 280 472 484 50 316 109 207 II........ 2.89 2.23 .44 .22 .28 III. 2.93 2.23 .48 .22 .26 1971—Jan.. 1,015 295 *476 202 41 297 102 195 IV___ 3.17 2.43 .51 .23 .26 Feb.. 951 284 *450 184 32 256 90 166 Mar.. 1,095 318 *531 199 46 1969—1.......... 2.77 2.04 .49 .24 .26 Apr.* 1,136 293 *467 330 47 II........ 2.68 2.06 .41 .21 .25 Ill.... 2.91 2.18 .47 .26 .25 IV___ 3.22 2.43 .52 .27 .27 1 Monthly figures do not reflect mortgage amendments included in annual totals. 1970—1......... 2.96 2.14 .52 .30 .31 2 Not ordinarily secured by mortgages. 2.83 2.10 .45 .28 .31 3 Includes a small amount of alteration and repair loans, not shown separ Ill.... 3.10 2.26 .53 .31 .25 ately; only such loans in amounts of more than $1,000 need be secured. IV....... 3.64 2.67 .61 .36 .33 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
JUNE 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 periiod) End of period) period period Total F su H in re A d - a g n V u t A e a e r - d c P ha u s r e s Sales d p M 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 1967............ 3,348 2,756 592 860 1,045 1,171 1967............ 5,522 4,048 1,474 1,400 12 1,736 501 1968............ 4,220 3,569 651 1,089 1 867 1,266 1968............ 7,167 5,121 2,046 1,944 2,697 1,287 1969............ 4,820 4,220 600 827 615 1,130 1969............ 10,950 7,680 3,270 4,121 6,630 3,539 1970............ 5,184 4,634 550 621 897 738 1970............ 15,502 11,071 4,431 5,078 8,047 5,202 1970-Feb... 4,903 4,311 592 58 24 1,057 1970-Mar... 12,499 8,739 3,760 526 696 4,108 Mar... 4,938 4,350 588 53 95 1,014 Apr... 12,949 9,069 3,880 485 592 4,152 Apr... 4,965 4,381 584 44 48 970 May.. 13,287 9,324 3,962 374 817 4,510 May.. 5,006 4,426 580 62 92 925 June.. 13,658 9,610 4,047 434 712 4,709 June.. 5,033 4,458 575 58 191 992 July... 14,084 9,936 4,148 470 532 4,684 July... 5,070 4,499 571 55 172 966 Aug... 14,452 10,218 4,234 413 718 4,834 Aug... 5,102 4,535 567 54 123 802 Sept... 14,807 10,499 4,308 406 650 4,849 Sept... 5,109 4,546 563 27 57 795 Oct.... 15,152 10,780 4,372 397 535 4,805 Oct.... 5,132 4,573 559 46 42 775 Nov... 15,396 10,981 4,416 294 541 4,930 Nov... 5,141 4,587 554 35 42 776 Dec... 15,502 11,071 4,431 165 600 5,203 Dec... 5,184 4,634 550 70 37 738 1971-Jan.... 15,520 11,092 4,428 75 139 5,092 1971-Jan.... 5,188 4,641 546 35 27 705 Feb... 15,448 11,057 4,391 61 Feb... 5,213 4,670 543 38 21 682 Mar... 15,420 Mar... 5,241 4,703 538 56 100 707 Note.—Federal National Mortgage Assn. data. Data prior to Sept. Note.—Government National Mortgage Assn. data. Data prior to 1968 relate to secondary market portfolio of former FNMA. Mortgage Sept. 1968 relate to Special Assistance and Management and Liquidating commitments made during the period include some multifamily and non portfolios of former FNMA and include mortgages subject to participation profit hospital loan commitments in addition to 1- to 4- family loan com pool of Government Mortgage Liquidation Trust, but exclude conven mitments accepted in FNMA’s free market auction system. tional mortgage loans acquired by former FNMA from the RFC Mortgage Co., the Defense Homes Corp., the Public Housing Admin., and Com munity Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (In per cent) Primary market Secondary Implicit yield, by (conventional loans) market Mortgage amounts commitment period (in months) FHA series FHLBB series Yield Date Accepted Period (effective rate) on FHA- of insured auction New Existing h N om ew es l h o n o a e m n w s e Offered Total pe B r y io c d o m (in m m itm on e t n h t s ) 3 6 12-18 homes homes 3 6 12-18 1967....................... 6.46 6.52 6.53 6.55 1968....................... 6.97 7.03 7.12 7.21 In millions of dollars In per cent 1969....................... 7.81 7.82 7.99 8.26 1970....................... 8.44 8.35 8.52 9.05 1970—Oct. 5.. 267.5 149.8 62.2 73.1 14.5 8.90 8.92 8.97 1970—Apr............. 8.41 8.34 8.55 9.10 19.. 352.5 149.7 53.2 88.1 8.4 8.89 8.90 8.95 May........... 8.45 8.34 8.55 9.11 June........... 8.48 8.36 8.55 9.16 Nov. 2.. 341.5 181.2 100.0 62.4 18.7 8.90 8.93 8.93 July............ 8.49 8.37 8.60 9.11 16.. 222.4 170.3 75.8 79.4 15.1 8.89 8.90 8.92 Aug............ 8.52 8.41 8.60 9.07 Sept............ 8.48 8.42 8.50 9.01 Dec. 7.. 166.5 127.8 54.7 60.9 12.2 8.56 8.54 8.57 Oct............. 8.51 8.35 8.50 8.97 14.. 165.1 124.7 42.1 72.1 10.5 8.51 8.43 8.47 Nov............ 8.43 8.32 8.45 8.90 Dec............. 8.38 8.26 8.30 8.40 1971—Jan. 25.. 44.1 35.5 9.9 25.6 7.82 7.96 8.40 1971—Jan.............. 8.18 8.08 7.95 Feb. 8.. 23.4 23.3 10.6 12.7 7.67 7.67 Feb............. 7.91 7.80 7.75 Mar............ 7.66 7.60 7.60 7.32 Mar. 1.. 185.6 51.8 15.2 29.3 7.3 7.43 7.43 7.56 Apr............. 7.48 7.47 7.55 7.37 15.. 193.5 74.0 17.9 41.2 14.9 7.32 7.44 7.54 29.. 122.5 67.0 36.7 26.3 3.9 7.32 7.45 7.55 Note.—Annual data are averages of monthly figures. The Apr. 12.. 126.9 54.6 39.8 9.4 5.4 7.32 7.45 7.53 FHA data are based on opinion reports submitted by field offices 26.. 687.2 313.9 154.0 126.6 33.4 7.43 7.54 7.57 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from May 10.. 1,168.0 236.8 145.7 71.3 19.7 7.57 7.68 7.74 weighted averages of private secondary market prices for Sec. 24.. 785.7 151.6 44.6 84.4 22.5 7.95 7.97 8.03 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Gaps in data are June 1.. 322.4 146.6 77.1 57.8 11.6 8.05 8.18 8.16 due to periods of adjustment to changes in maximum permis sible contract interest rates. The FHA series on average contract interest rates on conventional first mortgages in primary markets Note.—Implicit secondary market yields are gross—before deduction of 38are unweighted and are rounded to the nearest 5 basis points. basis-point fee paid for mortgage servicing. They reflect the average accepted bid The FHLBB effective rate series reflects fees and charges as well yield for Govt.-underwritten mortgages after adjustment by Federal Reserve as contract rates (as shown in the table on conventional first- to allow for FNMA commitment fees and FNMA stock purchase and holding mortgage terms, p. A-35) and an assumed prepayment at end requirements, assuming a prepayment period of 15 years for 30-year loans. Com of 10 years mitments for 12-18 months are for new homes only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 54 CONSUMER CREDIT □ JUNE 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—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- 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 Mar.............................. 123,604 99,168 35,028 28,591 4,045 31,504 24,436 9,557 7,207 7,672 Apr............................... 125,047 100,028 35,496 28,682 4,077 31,773 25,019 9,676 7,689 7,654 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 3 2,500 1,546 14,097 327 13,770 1970—Apr................................................... 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 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 99,860 87,315 41,934 31,588 12,292 1,501 12,545 337 12,208 100,142 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 99,790 86,820 41,740 31,081 12,438 1,561 12,970 332 12,638 101,161 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 99,168 86,015 41,563 30,326 12,509 1,617 13,153 325 12,828 100,028 86,805 42,094 30,369 12,686 1,656 13,223 330 12,893 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
JUNE 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) Autoimobile Repair paper Other and Other Repair E p n er d i o o d f Total Pur s g c u o o m o n d e s r m iz l o o a d a ti e n 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 i o l r e s g c u o o m o n d e s r m iz a o a n d ti d e o r n n s l P o o a e n n r a s l chased Direct paper paper loans 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 I960. 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—Apr.... 40,245 12,550 7,598 7,568 2,685 9,844 1970- 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 Mar__ 41,563 12,147 7,667 8,499 2,692 10,558 30,326 9,674 6,363 93 14,196 Apr__ 42,094 12,268 7,825 8,595 2,702 10,704 30,369 9,781 6,280 98 14,210 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 cards1 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 3,036 498 933 3,822 1950............... 6,768 1,576 245 3,291 76 1,580 1966............................... 9,314 3,410 588 980 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—Apr..................... 13,020 4,835 834 1,174 6,177 196 8 23,301 7,975 1,163 6,450 1,305 6,408 May.................... 13,225 4,897 845 1,199 6,284 196 9 24,300 7,900 1,196 6,650 1,584 6,970 June.................... 13,470 4,998 863 1,211 6,398 197 0 25,641 8.205 1.279 6.932 1.918 7.307 July..................... 13,612 5,049 872 1,230 6,461 Aug..................... 13,793 5,110 881 1,240 6,562 1970—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 Mar..................... 14,126 5,215 901 1,260 6,750 Dec__ 25.641 8.205 1.279 6.932 1.918 7.307 Apr...................... 14,342 5,292 914 1,277 6,859 1971—Jan.... 24,976 8,196 1,284 6,144 1,950 7,402 Feb.... 24,571 8.205 1,301 5,435 1.918 7,712 lan N e o ou te s .— len O d t e h r e s. r financial lenders consist of credit unions and miscel M Ap a r r - . - . - . - . 2 2 5 4 , , 0 4 1 3 9 6 8 8, ,3 24 5 9 0 1 1 , , 3 3 0 2 8 6 5 5 , , 3 7 1 7 6 4 1 1, , 8 9 9 1 1 5 7 7, ,6 6 7 5 2 4 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 □ JUNE 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 um er er mode R r e n p iz a a ir ti o a n n d l oans Personal loans Period S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 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—Apr.............................. 8,491 8,773 2,571 2,776 2,843 2,792 183 185 2,894 3,020 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 8,580 8,670 2,349 2,463 3,113 3,200 182 184 2,936 2,823 8,414 8,271 2,127 2,006 3,113 3,147 180 176 2,994 2,942 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 Mar.............................. 9,533 9,575 2,897 3,074 3,210 3,076 209 197 3,217 3,228 Apr............................... 9,751 10,079 2,872 3,100 3,415 3,363 205 219 3,259 3,397 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—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 Mar.............................. 9,038 9,651 2,696 2,915 3,164 3,413 196 203 2,982 3,120 Apr............................... 9,088 9,219 2,566 2,632 3,249 3,272 184 187 3,089 3,128 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—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 Mar.............................. 495 -76 201 159 46 -337 13 -6 235 108 Apr............................... 663 860 306 468 166 91 21 32 170 269 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
JUNE 1971 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.i N.S.A. S.A.i N.S.A. S.A. i N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 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—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 3,338 885 2,411 1,961 1,288 1,055 1,879 1,644 Feb.. 9,081 7,489 3,478 988 2,513 2,121 1,282 1,117 1,808 1,263 Mar.. 9,533 9,575 3,646 783 2,681 2,686 1,394 1.418 1,812 1,688 Apr.. 9,751 10,079 3,676 3,948 2,624 2,672 1,475 1,552 1,976 1,907 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—Apr.. 8,195 8,331 3,081 3,161 2,415 2,477 117 1,128 582 1,565 May. 8,589 8,255 3,170 3,071 2,574 2,445 173 1,104 672 1,635 June. 8,242 8,541 3,041 3,179 2,548 2,645 087 1,162 566 1,555 July.. 8,622 8,894 3,264 3,388 2.580 2,617 184 1,276 594 1,613 Aug.. 8,577 8,357 3,185 3.154 2,507 2,389 158 1,137 727 1,677 Sept.. 8,490 8,298 3,249 3.235 2,482 2,378 127 1,095 632 1,590 Oct.. 8,662 8,853 3,258 3,342 2.551 2,588 165. 1,173 688 1,750 Nov.. 8,716 8,440 3,276 3.155 2.552 2,570 135 1,075 753 1,640 Dec.. 8,515 8,823 3,262 3.235 2,465 2,753 113 1,159 675 1,676 1971—Jan... 8,829 8,605 3,385 3,169 2,486 2,293 199 1,195 759 1,948 Feb.. 8,979 8,346 3,369 3,153 2,656 2,401 186 1,070 768 1,722 Mar.. 9,038 9,651 3,387 3,666 2,674 2,871 207 1,245 770 1,869 Apr.. 9,088 9,219 3,332 3,417 2.580 2,629 315 1,336 861 1,837 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—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 Mar.. 495 -76 259 117 7 -185 187 173 42 -181 Apr.. 663 860 344 531 44 43 160 216 115 70 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. □ JUNE 1971 MARKET GROUPINGS (1957-59= 100) 1957-59 1969 1970 1971 pro aver Grouping por age® tion Apr. May June July Aug. Sept. Oct. Nov. Dec, Jan. Feb.r Mar.r Apr. Total index................................... 100.00 172.8 170.2 169.0 168.8 169.2 168.8 165.8 162.3 161.5 164.4 165.6 165.2 165.5 166.2 Final products, total......................... 47.35 170.8 168.5 167.7 167.1 166.8 166.5 163.1 159.8 159.4 162.9 163.4 163.0 163.4 163.4 Consumer goods.......................... 32.31 162.5 163.2 163.2 162.8 163.5 163.5 160.1 157.0 157.0 162.4 164.5 164.6 166.2 167.1 Equipment, including defense... 15.04 188.6 179.9 177.3 176.3 173.7 173.0 169.6 165.9 164.5 164.2 161.3 159.4 157.3 155.6 Materials.......................................... 52.65 174.6 171.9 170.4 171.2 171.4 171.2 168.9 164.8 163.8 166.0 168.0 167.8 168.0 169.3 Consumer goods Automotive products......................... 3.21 173.2 158.4 166.4 170.3 172.8 167.5 133.1 110.1 112.2 145.9 166.3 174.4 176.0 171.2 Autos................................................ 1.82 162.8 136.1 156.0 163.0 163.8 163.3 108.5 76.5 78.1 131.9 155.1 168.1 167.3 153.9 Auto parts and allied products.... 1.39 186.8 187.8 180.1 179.9 184.7 173.1 165.6 154.5 157.0 164.3 181.1 182.8 187.4 194.0 Home goods and apparel.................. 10.00 159.3 155.0 153.0 153.2 155.4 156.4 153.4 153.9 150.3 150.9 151.4 150.5 153.4 154.8 Home goods..................................... 4.59 184.0 180.0 178.4 177.7 182.5 183.7 179.0 180.2 180.0 174.0 176.6 175.9 180.2 184.4 Appliances, TV, and radios........ 1.81 180.2 178.9 182.6 178.8 192.3 198.6 189.9 194.3 188.1 169.1 173.9 172.8 179.7 188.7 Appliances................................ 1.33 192.4 206.7 213.9 201.4 218.4 223.7 212.8 216.0 208.3 182.2 193.5 192.3 198.1 202.6 TV and home radios................ .47 145.6 100.3 94.2 115.2 118.8 127.8 125.5 133.2 131.1 132.2 118.7 118.0 128.0 149.5 Furniture and rugs....................... 1.26 180.3 170.6 165.5 164.9 165.2 164.9 164.4 166.5 169.3 170.5 171.4 172.4 174.2 175.4 Miscellaneous home goods.......... 1.52 191.5 189.0 184.1 186.9 185.0 181.6 178.0 174.8 179.3 182.8 184.2 182.6 185.6 186.9 Apparel, knit goods, and shoes.... 5.41 138.5 133.8 131.4 132.4 132.4 133.2 131.7 131.6 125.2 131.3 130.0 129.0 130.7 Consumer staples............................. 19.10 162.4 168.4 168.0 166.6 166.3 166.6 168.1 166.7 168.0 171.1 171.2 170.3 171.2 172.8 Processed foods............................... 8.43 136.6 140.2 141.1 137.9 138.7 139.4 139.3 135.2 138.3 141.0 141.4 138.4 140.3 141.0 Beverages and tobacco.................... 2.43 146.8 150.1 142.2 142.6 141.9 144.7 149.0 148.1 147.5 152.1 155.1 159.0 161.4 Drugs, soap, and toiletries.............. 2.97 209.0 218.6 219.6 217.4 217.4 213.9 215.5 215.0 220.1 226.8 222.2 220.7 222.3 228.0 Newspapers, magazines, and books 1.47 147.1 146.0 146.9 147.6 142.9 143.1 140.5 140.8 143.2 144.7 145.5 144.9 143.0 144.4 Consumer fuel and lighting............ 3.67 199.6 212.6 212.3 213.7 212.8 213.5 219.2 221.7 217.2 218.0 218.1 219.6 218.4 Fuel oil and gasoline................... 1.20 144.6 152.1 149.7 153.0 148.2 148.9 152.7 155.2 154.8 155.6 153.2 153.3 156.9 161.0 Residential utilities....................... 2.46 226.3 242.1 242.8 243.3 244.3 245.0 251.7 254.2 247.6 248.5 249.7 252.0 248.5 Electricity................................. 1.72 249.7 267.5 268.1 268.1 269.1 269.7 281.9 285.0 275.1 276.0 277.1 280.0 274.5 Gas............................................ .74 Equipment Business equipment........................... 11.63 195.6 193.0 188.7 188.0 186.1 185.9 182.3 178.9 177.8 177.9 174.3 173.0 170.5 169.5 Industrial equipment....................... 6.85 179.1 182.1 175.8 175.2 174.6 173.3 170.5 169.7 167.9 166.8 164.4 162.3 160.3 159.3 Commercial equipment................... 2.42 220.0 223.4 220.4 220.4 218.3 214.2 210.5 207.0 205.7 204.3 200.7 199.3 198.3 197.6 Freight and passenger equipment.. 1.76 246.7 215.4 216.8 213.8 207.3 214.3 206.5 193.7 194.6 202.3 203.6 196.4 191.1 188.9 Farm equipment.............................. .61 136.8 130.4 127.4 128.6 126.0 133.2 133.6 128.0 130.8 127.0 96.7 121.9 115.3 Defense equipment........................... 3.41 Materials Durable goods materials................... 26.73 165.5 159.6 157.5 157. 158.4 157.4 151.9 144.3 141.9 147.0 149.7 150.3 151.4 152.8 Consumer durable........................... 3.43 163.9 143.6 146.0 155.4 156.0 161.3 143.6 110.9 111.2 139.0 151.3 153.0 150.6 148.5 Equipment........................................ 7.84 191.9 183.8 177.5 176.6 178.4 175.9 173.1 166.7 164.1 163.6 162.9 160.9 161.2 156.8 Construction.................................... 9.17 152.4 148.8 146.8 145.1 146.3 147.3 146.1 144.2 140.6 142.0 148.6 148.3 149.1 149.6 Metal materials n.e.c....................... 6.29 152.8 147.7 146.8 150.0 152.6 147.2 140.1 136.2 133.7 143.3 147.0 148.9 150.1 150.2 Nondurable materials....................... 25.92 183.9 184.6 183.8 184.9 184.9 185.4 186.4 186.0 186.3 185.7 187.0 185.8 185.2 186.3 Business supplies............................. 9.11 166.6 164.5 162.1 163.4 164.9 165.0 161.2 159.5 160.7 162.2 163.9 160.1 155.2 158.2 Containers.................................... 3.03 168.6 166.2 168.2 166.0 161.9 167.5 163.1 164.1 164.2 166.5 174.4 166.2 153.1 157.1 General business supplies............ 6.07 165.5 163.7 159.1 162.1 166.4 163.7 160.3 157.2 158.9 160.0 158.7 157.1 156.3 158.8 Nondurable materials n.e.c............. 7.40 237.8 236.1 233.1 234.7 234.2 233.4 235.8 236.0 238.5 235.3 238.4 238.2 240.5 238.9 Business fuel and power.................. 9.41 158.2 163.8 166.0 166.6 165.4 167.5 171.8 172.5 170.1 169.3 169.1 169.4 170.8 172.2 Mineral fuels................................ 6.07 134.9 139.1 142.0 142.4 140.2 144.4 147.5 148.0 146.6 145.0 143.5 141.8 144.9 146.8 Nonresidential utilities................ 2.86 216.7 226.5 228.1 228.6 229.4 227.9 235.1 236.7 231.1 232.6 234.3 239.3 236.8 Electricity................................. 2.32 220.6 232.0 233.8 234.3 235.0 233.0 238.7 240.8 233.9 235.8 237.9 243.7 240.4 General industrial................ 1.03 216.1 220.6 221.8 223.9 227.2 225.4 225.8 223.1 216.3 219.5 219.8 224.9 222.4 Commercial and other......... 1.21 236.1 254.2 256.7 255.9 254.8 252.7 263.0 268.6 261.2 262.1 265.8 272.6 268.5 Gas............................................ .54 Supplementary groups of consumer goods Automotive and home goods... 7.80 179.5 171.1 173.5 172.7 178.5 177.0 160.1 151.4 152.1 162.5 172.4 175.3 178.4 179.0 Apparel and staples................... 24.51 157.1 160.7 159.9 159.0 158.8 159.2 160.1 158.9 158.6 162.3 162.1 161.2 162.3 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ INDUSTRIAL PRODUCTION: S.A. A 59 INDUSTRY GROUPINGS (1957-59 = 100) Grouping 19 p p 5 o r 7 o r - 59 a 1 v 9 e 6 r 9 1970 1971 tion age* Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.' Mar.r Apr. Total index........................................... 100.00 172.8 170.2 169.0 168.8 169.2 168.8 165.8 162.3 161.5 164.4 165.6 165.2 165.5 166.2 Manufacturing, total............................. 86.45 173.9 170.0 168.1 168.0 168.5 167.7 163.7 159.4 159.0 162.1 163.6 163.1 163.5 163.9 Durable.................................................. 48.07 176.5 168.4 167.6 167.3 167.4 166.7 160.4 153.5 151.4 156.1 157.8 157.6 157.7 157.4 Nondurable.......................................... 38.38 170.6 171.9 168.7 168.9 170.0 169.0 167.7 166.9 168.6 169.7 170.9 169.9 170.7 172.0 Mining......................................................... 8.23 130.2 133.9 134.8 135.5 133.8 137.1 138.9 139.9 139.4 138.8 137.9 136.3 138.7 138.8 Utilities........................................................ 5.32 221.2 233.8 234.9 235.4 236.3 235.8 242.8 244.8 238.7 240.0 241.5 245.2 242.2 246.0 Durable manufactures Primary and fabricated metals. . .. 12.32 162.5 154.7 155.2 155.6 157.1 157.1 154.2 145.6 142.1 146.1 148.7 151.0 152.6 153.4 Primary metals........................................ 6.95 149.1 138.9 142.6 142.7 145.2 145.6 142.6 133.9 129.3 135.4 137.6 140.8 143.1 144.6 Iron and steel...................................... 5.45 140.3 133.0 136.7 138*8 136.8 134.1 129.5 121.5 117.2 122.3 130.0 132.9 138.3 141.9 Nonferrous metals and products 1.50 181.1 175.4 174.4 169.2 172.6 169.7 172.1 161.5 162.9 177.1 171.7 173.4 174.9 169.7 Fabricated metal products............... 5.37 179.8 175.2 171.4 172.3 172.5 171.9 169.2 160.6 158.7 160.0 163.0 164.1 164.8 164.8 Structural metal parts.................... 2.86 173.3 170.2 164.2 164.4 162.9 164.0 162.7 158.0 158.2 158.9 163.3 165.1 168.5 165.5 Machinery and related products. .. 27.98 188.4 178.6 177.6 178.0 177.4 176.0 167.2 158.9 156.8 162.9 164.1 162.8 162.0 160.6 Machinery.................................................. 14.80 195.7 194.9 191.0 190.6 191.2 190.3 186.2 182.9 179.0 176.7 174.7 173.0 173.4 173.3 Nonelectrical machinery............... 8.43 194.6 191.7 187.1 185.2 185.2 183.0 180.0 176.1 172.7 170.4 166.2 165.5 165.0 162.4 Electrical machinery........................ 6.37 197.2 199.1 196.3 197.7 199.1 199.9 194.5 191.9 187.4 185.1 185.9 182.9 184.5 187.7 Transportation equipment................ 10.19 174.6 153.1 157.3 159.9 158.1 156.7 139.0 122.0 121.9 142.5 148.6 148.8 146.6 142.8 Motor vehicles and parts............. 4.68 166.9 148.0 158.5 164.4 164.8 164.7 127.3 95.4 96.9 142.0 158.8 166.5 164.8 157.9 Aircraft and other equipment.. , 5.26 177.8 154.1 153.0 153.3 149.7 147.1 145.7 141.1 139.5 139.3 136.1 129.5 126.1 124.5 Instruments and related products. 1.71 194.4 195.4 191.3 187.9 187.0 183.3 181.8 181.3 181.7 180.5 181.4 179.5 176.2 178.7 Ordnance and accessories.................. 1.28 Clay, glass, and lumber....................... 4.72 142.5 140.3 139.2 134.1 134.7 136.9 133.8 135.0 133.3 135.4 138.7 138.4 139.1 140.9 Clay, glass, and stone products... 2.99 156.0 154.6 152.6 149.4 148.8 150.1 148.7 149.4 148.5 152.6 151.3 150.9 152.3 154.5 Lumber and products......................... 1.73 119.1 115.5 116.1 107.6 110.5 114.2 108.2 110.1 107.0 105.8 117.0 116.9 116.3 Furniture and miscellaneous.............. 3.05 176.7 173.5 169.1 168.3 167.3 166.1 164.8 165.2 166.7 166.1 166.3 166.6 168.2 169.5 Furniture and fixtures......................... 1.54 186.9 179.5 174.4 173.8 172.5 172.9 171.7 173.9 174.7 174.5 174.5 173.9 175.0 MIA Miscellaneous manufactures............ 1.51 166.4 167.4 163.6 162.6 162.0 159.1 157.7 156.3 158.5 157.5 158.0 159.1 161.2 161.5 Nondurable manufactures Textiles, apparel, and leather........... 7.60 144.2 138.9 136.7 135.8 135.9 135.9 135.2 135.7 133.0 135.6 137.0 135.1 136.5 138.8 Textile mill products............................ 2.90 154.2 151.3 147.8 145.9 145.3 146.1 145.7 146.7 145.1 143.9 149.1 151.7 153.5 155.7 Apparel products................................... 3.59 149.2 140.8 137.7 139.0 140.9 140.7 139.3 138.7 135.5 141.7 140.3 138.0 139.5 Leather and products.......................... 1.11 101.9 100.2 104.5 99.3 95.6 93.6 94.6 97.2 93.1 94.2 94.7 82.2 82.3 Paper and printing................................. 8.17 164.4 165.0 163.0 161.7 161.9 162.1 157.6 757.7 160.5 159.7 159.9 159.9 159.5 159.9 Paper and products.............................. 3.43 175.6 176.3 174.5 170.8 172.0 172.9 166.2 168.0 171.7 169.5 170.0 170.0 169.3 170.6 Printing and publishing...................... 4.74 156.3 156.9 154.8 155.2 154.6 154.3 151.5 150.2 152.4 152.7 152.6 152.6 152.5 152.3 Newspapers.......................................... 1.53 142.7 139.3 136.9 137.5 140.0 138.7 137.4 134.5 137.2 136.6 134.9 139.3 135.5 134.0 Chemicals, petroleum, and rubber.. 11.54 222.6 227.0 220.2 224.3 226.8 223.5 222.0 221.5 224.1 225.2 225.9 224.0 225.4 228.9 Chemicals and products..................... 7.58 239.0 244.4 241.4 243.2 243.3 239.8 240.8 240.7 243.7 243.9 245.3 243.8 244.7 246.3 Industrial chemicals......................... 3.84 283.0 289.2 281.3 285.8 285.7 280.7 282.0 282.9 285.4 281.7 283.5 283.9 285.0 Petroleum products.............................. 1.97 143.8 147.9 146.5 147.8 145.5 147.5 150.3 150.1 154.2 156.0 152.7 152.1 153.0 155.2 Rubber and plastics products......... 1.99 238.7 239.4 212.2 227.8 244.8 236.9 221.4 219.1 218.9 222.3 224.3 219.8 223.8 Foods, beverages, and tobacco......... 11.07 139.0 142.3 141.3 139.2 140.0 140.1 141.0 138.4 141.2 142.7 144.9 145.0 145.5 144.3 Foods and beverages............................ 10.25 140.7 143.7 143.1 140.7 141.1 141.6 142.4 139.6 142.7 144.4 146.7 146.5 147.0 146.8 Food manufactures.......................... 8.64 136.7 140.1 141.0 138.3 139.5 138.8 138.7 135.7 139.4 140.1 140.9 141.0 141.0 141.4 Beverages............................................... 1.61 161.9 162.8 154.6 153.7 149.6 156.4 162.2 160.3 160.7 167.6 178.1 175.9 179.3 Tobacco products.................................. .82 117.3 125.1 117.8 120.7 126.6 121.8 122.9 124.1 121.6 121.7 121.9 125.7 126.1 Mining Coal, oil, and gas.................................... 6. 127.4 129.8 132.3 133.3 131.0 135.1 138.2 139.2 137.1 136.2 134.8 133.2 135.7 136.0 Coal............................................................... 1.16 117.7 123.0 134.2 124.3 127.5 128.5 127.9 128.1 127.3 130.1 136.3 129.5 3 38.1 142.5 Crude oil and natural gas................. 5.64 129.3 131.3 131.9 135.1 131.7 136.5 140.3 141.5 139.1 137.4 134.6 134.0 135.2 134.7 Oil and gas extraction.................... 4.91 139.0 142.9 143.9 146.7 143.2 148.2 152.1 152.6 151.2 148.5 145.3 144.8 146.5 147.8 Crude oil........................................... 4.25 132.0 135.2 135.8 137.5 134.4 139.8 144.1 145.1 143.8 141.0 137.3 136.4 138.6 139.9 Gas and gas liquids.................... .66 184.0 Oil and gas drilling........................... .73 64.2 Metal, stone, and earth minerals... 1.43 143.5 153.1 146.6 146.1 146.8 146.6 142.2 143.3 150.1 151.4 152.5 151.0 153.0 152.0 Metal mining............................................ .61 142.0 162.6 151.8 150.3 150.9 152.3 144.5 145.1 160.1 159.7 160.3 160.0 160.1 159.2 Stone and earth minerals.................. .82 144.7 146.1 142.8 143.0 143.8 142.3 140.5 142.0 142.7 145.2 146.7 144.4 147.8 146.7 Utilities Electric......................................................... 4.04 233.0 247.1 248.4 248.7 249.5 248.6 257.1 259.6 251.5 253.0 254.6 259.1 254.9 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. □ JUNE 1971 MARKET GROUPINGS (1957-59= 100) 19 p 5 r 7 o - 59 1969 1970 1971 Grouping por a a v g e e r ? tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. Total index................................... 100.00 172.8 170.6 169.1 172.1 163.6 169.1 0.2 166.5 162.9 162.5 164.2 165.9 167.1 166.6 Final products, total......................... 47.35 170.8 166.9 165.8 169.9 161.8 167.1 168.8 164.7 160.2 160.0 162.7 163.4 164.0 161.7 Consumer goods.......................... 32.31 162.5 160.6 160.3 165.7 157.6 165.3 168.1 164.0 158.0 157.0 163.4 165.5 166.5 164.6 Equipment, including defense... 15.04 188.6 180.3 177.7 179.0 170.9 170.9 170.4 166.1 164.8 166.4 161.2 159.1 158.4 155.7 Materials.......................................... 52.65 174.6 174.3 172.1 174.1 165.3 170.9 171.5 168.5 165.4 164.7 165.2 168.6 170.2 171.2 Consumer goods Automotive products......................... 3.21 173.2 167.0 173.8 182.9 131.6 116.6 135.2 118.9 117.5 148.4 174.8 183.5 184.3 178.3 Autos................................................ 1.82 162.8 152.4 173.2 185.0 98.3 68.9 108.5 88.0 87.5 137.6 169.1 184.9 184.0 167.7 Auto parts and allied products.... 1.39 186.8 186.3 174.4 180.1 175.6 179.5 170.3 159.7 157.0 162.5 182.3 181 184.7 192.2 Home goods and apparel................. 10.00 159.3 157.1 154.1 156.4 143.7 154.1 156.2 162.0 154.6 142.1 149.1 155.3 158.3 157.3 Home goods.................................... 4.59 184.0 181.4 177.5 180.0 168.7 174.1 182.9 190.9 184.5 171.2 174.0 180.3 186.3 185.9 Appliances, TV, and radios........ 1.81 180.2 188.3 185.7 186.0 172.3 170.1 189.9 205.7 188.2 156.1 176.1 187.5 198.5 198.0 Appliances................................ 1.33 192.4 223.0 219.8 213.0 200.6 182.8 208.3 223.0 202.1 168.8 197.0 208.7 221.7 218.1 TV and home radios............... .47 145.6 90.3 89.5 110.0 92.3 134.2 138.0 157.2 148.9 120.3 117.4 127.7 133.0 141.3 Furniture and rugs....................... 1.26 180.3 165.8 159.2 162.9 157.3 168.7 169.0 175.2 175.6 176.8 167.6 170.3 172.1 170.5 Miscellaneous home goods......... 1.52 191.5 186.2 183.0 186.9 173.9 183.4 186.0 186.3 187.6 184.6 176.8 179.9 183.6 184.1 Apparel, knit goods, and shoes.... 5.41 138.5 136.5 134.4 136.4 122.5 137.2 133.7 137.5 129.3 117.5 128.1 134.2 134.6 Consumer staples............................. 19.10 162.4 161.4 161.2 167.7 169.2 179.4 179.8 172.6 166.6 166.3 168.9 167.8 167.8 166.1 Processed foods............................... 8.43 136.6 129.8 132.6 136.5 138.0 153.0 155.0 150.1 143.6 137.2 134.3 132.2 132.3 130.6 Beverages and tobacco.................... 2.43 146.8 151.7 152.8 163.3 148.7 156.7 152.7 152.4 139.8 131.7 138.6 144.8 157.7 Drugs, soap, and toiletries.............. 2.97 209.0 216.4 215.2 225.0 216.3 218.2 222.0 220.2 221.2 221.6 217.8 222.9 222.3 225.7 Newspapers, magazines, and books 1.47 147.1 146.6 146.5 145.5 142.9 144.8 141.8 140.7 141.3 144.4 144.2 144.3 145.1 145.0 Consumer fuel and lighting............ 3.67 199.6 200.0 193.7 203.6 226.3 236.7 236.2 211.1 202.6 219.8 236.9 228.0 220.5 Fuel oil and gasoline................... 1.20 144.6 144.3 144.8 151.3 151.0 153.3 156.2 151.2 153.9 160.9 157.9 156.8 155.2 152.6 Residential utilities...................... 2.46 226.3 Electricity................................. 1.72 249.7 246.1 231.9 247.9 296.0 316.1 315.7 265.1 244.8 276.0 314.0 295.4 280.0 Gas............................................ .74 Equipment Business equipment........................... 11.63 195.6 194.0 189.7 191.9 182.9 183.5 183.4 178.8 177.2 179.7 173. 172.6 172.2 170.0 Industrial equipment....................... 6.85 179.1 182.1 176.0 178.7 172.9 172.8 172.0 168.7 167.9 169.3 164.7 161.5 160.5 159.3 Commercial equipment................... 2.42 220.0 219.2 217.8 221.1 213.9 214.2 213.7 209.1 208.2 208.8 200.9 197.1 198.3 193.8 Freight and passenger equipment. . 1.76 246.7 224.0 223.3 222.4 203.2 207.9 204.4 193.7 190.7 200.3 197.5 196.4 196.8 194.6 Farm equipment.............................. .61 136.8 140.1 134.4 135.6 114.1 110.9 131.0 127.8 119.4 122.0 98.4 130.5 127 Defense equipment........................... 3.41 Materials Durable goods materials................... 26.73 165.5 160.4 159.5 162.0 153.2 156.0 154.9 147.1 143.6 146.9 146.6 150.5 153.4 153.6 Consumer durable........................... 3.43 163.9 147.9 150.4 158.5 142.7 147.6 140.7 111.5 114.5 146.0 156.6 155.3 155.1 153.0 Equipment........................................ 7.84 191.9 185.8 178.7 178.4 172.9 170.6 171.4 166.2 164.3 166.1 164.4 162.3 163.0 158.5 Construction.................................... 9.17 152.4 148.1 149.6 154.1 150.1 155.7 153.4 149.4 142.7 137.7 134.6 138.8 144.3 148.9 Metal materials n.e.c....................... 6.29 152.8 153.6 154.9 154.8 138.9 142.9 144.3 139.5 134.8 137.0 143.2 150.2 153.7 156.2 Nondurable materials....................... 25.92 183.9 188.5 185.1 186.6 177.8 186.2 188.6 190.5 188.0 182.9 184.4 187.3 187.6 189.4 Business supplies............................. 9.11 166.6 169.3 164.8 165.1 154.7 165.0 165.2 167.4 164.4 156.6 158.1 159.4 158.1 162.8 Containers.................................... 3.03 168.6 172.2 169.9 171.1 157.9 177.6 173.1 176.8 164.2 148.2 165.7 164.2 153.9 162.8 General business supplies............ 6.07 165.5 167.8 162.3 162.1 153.1 158.8 161.3 162.7 164.5 160. 154.3 157.1 160.2 162.8 Nondurable materials n.e.c............. 7.40 237.8 245.7 236.6 238.5 226.0 231.1 235.8 241.6 240.9 232.9 234.8 243.0 245.3 246.1 Business fuel and power................. 9.41 158.2 162.1 164.3 166.5 162.3 171.3 174.0 172.7 169.2 169.1 170.1 170.4 170.8 170.4 Mineral fuels................................ 6.07 134.9 140.9 142.0 140. 131.1 142.6 145.7 148.5 148.0 146.8 145.9 146.5 148.0 148.6 Nonresidential utilities................ 2.86 216.7 Electricity................................. 2.32 220.6 220.7 227.3 239.0 247.1 253.4 252.9 240.4 226.4 229.4 235.3 234.1 231.8 General industrial................ 1.03 216.1 217.7 222.9 228.4 226.1 229.9 229.2 223.5 216.3 217.3 218.7 219.3 220.0 Commercial and other......... 1.21 236.1 235.1 243.1 261.0 279.0 288.1 287.2 267.5 246.8 251.6 261.8 259.0 254.0 Gas............................................ .54 Supplementary groups of consumer goods Automotive and home goods. 7. 179.5 175.5 176.0 181.2 153.5 150.4 163.2 161.3 156.9 161.8 174.3 181 185.5 182.7 Apparel and staples............... 24.51 157.1 155.9 155.3 160.8 158.9 170.0 169.6 164.9 158.4 155.5 159.9 160.4 160.5 For Note see p. A-61. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ INDUSTRIAL PRODUCTION: N.S.A. A 61 INDUSTRY GROUPINGS (1957-59= 100) 1957-59 1969 1970 1971 Grouping pro aver por age® tion Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr. Total index................................. 100.00 172.8 170.6 169.1 172.1 163.6 169.1 170.2 166.5 162.9 162.5 164.2 165.9 167.1 166.6 Manufacturing, total....................... 86.45 173.9 171.0 168.9 171.8 161.6 166.4 167.6 164.5 161.2 160.0 161.4 163.8 165.4 165.0 Durable...................................... 48.07 176.5 170.5 169.4 171.3 159.8 161.0 162.3 156.3 153.3 156.7 157.2 159.0 161.0 159.5 Nondurable................................ 38.38 170.6 171.7 168.4 172.3 163.8 173.2 174.2 174. 171.1 164.2 166.6 169.8 170.8 171.9 Mining............................................ 8.23 130.2 135.0 137.9 137.6 129.2 138.2 140.1 141. 140.5 139.4 137.4 136.3 137.8 139.8 Utilities........................................... 5.32 221.2 Durable manufacture Primary and fabricated metals.... 12.32 162.5 158.7 158.3 159.9 148.0 153.9 155.1 146.7 142.8 145.8 148.5 152.7 156.3 157.6 Primary metals............................... 6.95 149.1 147.9 149.0 147.6 131.1 137.2 137.9 132.2 128.0 131.2 140.4 147.4 152.0 154.0 Iron and steel............................. 5.45 140.3 138.3 139.4 138.8 124.5 128.7 128.2 123.3 118.4 120.5 132.6 139.5 145.2 147.6 Nonferrous metals and products 1.50 181.1 183.1 183.6 179.7 155.3 168.0 173.3 164.6 162.9 170.0 168.8 176.0 176.8 177.2 Fabricated metal products............ 5.37 179.8 172.6 170.5 175.7 169.9 175.3 177.3 165.4 162.0 164.8 159.1 159.7 161.8 162.3 Structural metal parts............... 2.86 173.3 165.1 163.4 167.7 162.9 168.1 169.2 162.7 160.6 160.5 160.0 158.5 161.9 160.5 Machinery and related products... 27.98 188.4 181.0 179.5 181.4 168.2 165.5 167.7 160.8 158.9 164.6 166.1 166.4 166.3 162.9 Machinery....................................... 14.80 195.7 197.3 192.1 193.6 185.3 184.5 187.0 184.2 180.2 177.7 175.9 176.7 178.6 175.8 Nonelectrical machinery............ 8.43 194.6 197.4 191.8 190.4 182.4 176.2 177.7 172.9 171.0 171.6 167.9 170.5 172.4 168.1 Electrical machinery.................. 6.37 197.2 197.2 192.4 197.8 189.2 195.6 199.3 199.1 192.5 185.8 186.5 184.9 186.8 186.1 Transportation equipment............ 10.19 174.6 157.0 161.2 164.6 142.0 136.1 139.0 124.8 125.5 145.2 152.7 153.3 152.2 146.2 Motor vehicles and parts.......... 4.68 166.9 155.4 167.7 176.4 134.0 123.0 128.4 100.8 102.5 144.8 166.7 174.4 172.7 164.4 Aircraft and other equipment.., 5.26 177.8 154.9 152.4 151.2 146.1 144.5 145.1 141.8 141.6 142.1 137.5 131.4 129.8 125.1 Instruments and related products. 1.71 194.4 192.5 189.4 189.8 185.1 184.8 183.8 183.3 183.2 182.7 179.2 176.8 177.1 176.0 Ordnance and accessories.............. 1.28 Clay, glass, and lumber.................. 4.72 142.5 139.9 140.7 143.3 139.9 146.9 143.2 143.0 134.8 128.2 123.5 129.9 135.6 140.5 Clay, glass, and stone products... 2.99 156.0 154.0 155.0 159.7 157.0 161.8 157.2 157.6 150.0 144.5 134.7 139.1 146.4 153.9 Lumber and products.................... 1.73 119.1 115.5 116.1 115.1 110.5 121.1 119.0 117. 108.6 100.1 104.1 114.0 116.9 Furniture and miscellaneous........... 3.05 176.7 169.0 165.2 168.5 161.9 170.9 170.9 173.9 173.1 171.7 162.7 162.1 166.1 165.1 Furniture and fixtures.................... 1.54 186.9 174.7 169.2 173.5 168.2 177.7 176.8 180.5 179.6 181.1 172.8 171.3 174.9 172.6 Miscellaneous manufactures......... 1.51 166.4 163.2 161.1 163.4 155.5 163.9 164.8 167.2 166.4 162.2 152.5 152.7 157.2 157.5 Nondurable manufactures Textiles, apparel, and leather........ 7.60 144.2 142.0 139.5 139.3 124.9 139.0 137. 141.3 135.6 125.4 136.0 142.2 142.5 141.9 Textile mill products..................... 2.90 154.2 154.3 151.5 147.4 135.9 146.8 148.6 151.1 149.5 138.9 148.4 155.5 157.3 158.8 Apparel products........................... 3.59 149.2 145.7 142.5 145.3 128.2 144.9 142.1 146.3 138.2 126.1 138.9 148.3 148.0 Leather and products.................... 1.11 101.9 98.2 98.2 98.8 86.0 99.7 96.0 99.6 91.2 87.9 94.2 87.9 86.4 Paper and printing.......................... 8.17 164.4 168.7 164.2 162.8 153.1 160.8 160.1 165.0 164.5 156.0 157.1 161.3 160.8 163.5 Paper and products....................... 3.43 175.6 182.5 175.4 174.7 159.1 174.6 168.7 178.9 174.3 155.9 170.0 176.0 171.0 176.6 Printing and publishing................. 4.74 156.3 158.8 156.1 154.3 148.8 150.8 153.8 155.0 157.4 156.1 147.8 150.8 153.4 154.1 Newspapers................................. 1.53 142.7 148.4 145.9 138.2 125.3 126.9 138.1 144.3 150.9 140.0 123.4 133.7 137.5 142.7 Chemicals, petroleum, and rubber.. 11.54 222.6 228.3 220.1 229.2 219.3 223.3 227.5 226.6 225.9 222.1 222.1 226.8 227.5 230.2 Chemicals and products................ 7.58 239.0 248.4 241.4 248.5 237.5 239.3 244.6 245.0 244.8 241.4 240.2 247.2 246.8 250.4 Industrial chemicals................... 3.84 283.0 295.0 281.3 287.2 276.0 276.5 284.8 288.5 289.7 284.5 279.2 289.6 287.9 Petroleum products....................... 1.97 143.8 142.0 145.0 152.2 153.2 155.3 156.3 151.6 152.2 152.3 148.1 149.1 147.6 149.0 Rubber and plastics products....... 1.99 238.7 237.0 213.3 232.4 215.4 229.8 232.5 231.1 226.6 217.9 226.5 226.4 233.2 Foods, beverages, and tobacco....... 11.07 139.0 135.2 137.5 142.7 140.4 153.6 154.2 151.0 143.3 136.7 136.7 135.7 138.5 137.8 Foods and beverages..................... 10.25 140.7 136.1 138.7 143.8 142.7 155.4 156.3 152.2 144.9 139.7 137.3 136.6 139.7 139.9 Food manufactures.................... 8.64 136.7 130.6 133.2 136.9 138.1 152.8 154.6 150.6 144.3 138.0 135.5 133.2 133.1 131.8 Beverages.................................... 1.61 161.9 165.4 168.5 180.7 167.3 169.4 165.4 161.1 147.8 148.3 148.5 154.8 174.8 Tobacco products.......................... .82 117.3 124.8 122.0 129.1 112.0 131 127.7 135.1 124.0 99.1 129.2 125.1 124.2 Mining Coal, oil, and gas........................... 6.80 127.4 132.4 134.0 132.7 122.9 133.5 136.5 139.7 139.2 139.2 138.5 137.2 138.1 138.5 Coal................................................ 1.16 117.7 123.9 135.5 127.2 94.7 135.2 135.3 139.6 132.5 127.8 133.6 131.1 139.2 143.5 Crude oil and natural gas............. 5.64 129.3 134.2 133.7 133.8 128.8 133.2 136.8 139.7 140.6 141.5 139.5 138.5 137.9 137.4 Oil and gas extraction................ 4.91 139.0 144.9 143.5 144.0 139.8 144.4 148.1 150.6 151.7 151.3 148.8 150.1 150.1 149.8 Crude oil................................. 4.25 132.0 137.4 136.5 136.1 131.7 137.0 141.2 143.6 143.8 142.4 139.4 140.5 141.4 142.1 Gas and gas liquids................ .66 184.0 Oil and gas drilling.................... .73 64.2 Metal stone, and earth minerals... 1.43 143.5 146.9 156.2 161.0 159.0 160.2 157.2 152.1 146.5 140.6 132.0 131.5 136.3 145.9 Metal mining................................. .61 142.0 151.2 167.0 169.8 161.5 164.5 163.3 155.3 148.9 143.7 141.1 144.0 142.5 148.1 Stone and earth minerals.............. .82 144.7 143.8 148.1 154.4 157.2 157.0 152.6 149.8 144.8 138.2 125.3 122.3 131.8 144.4 Utilities Electric............................................ 4.04 233.0 231.6 229.2 242.8 268.0 280.2 279.7 253.9 234.2 249.3 268.8 263.6 252.3 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 □ JUNE 1971 SELECTED BUSINESS INDEXES (1957-59= 100, except as noted) Industrial production Manu Prices 4 facturing 2 Ca Nonag- Major market groupings pacity Con ricul- Period Total Tot F a i l na g l s C o u p o o m r n d o e s d r u E c m t q s e u n ip t M ria a 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 it i t e i s l i u n c t ( t i e i p m o l n e i n z f t r ) g a . t s r c t t a r i o u o c n t n c s T m p t e o u e l m o r t n a a y t l l — 1 p m E lo e m n y t P ro a l y ls T s r a e o l t t e a a i s 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 d m 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 1953., 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—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... 162.3 159.8 157.0 165.9 164 159.4 139.9 244.8 115.0 133.6 106.4 168.8 179 118.1 111.0 Nov.. 161.5 159.4 157.0 164.5 163.8 159.0 139.4 238.7 72.4 130.0 133.4 105.5 168.5 177 118.5 110.9 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.... 165.6 163.4 164.5 161.3 168.0 163.6 137.9 241.5 117.0 134.5 107.9 179.1 182 119.2 111.8 Feb.... 165.2 163.0 164.6 159.4 167.8 163.1 136.3 245.2 '73.2 126.0 134.4 107.5 177.6 185 119.4 112.8 Mar.. . 165.5 163.4 166.2 157.3 168.0 163.5 138.7 242.2 141.0 134.5 r107.1 rl 78.8 '189 119.8 113.0 Apr— r166.2 '•163.4 r167.1 r155.6 '•169.3 r163.9 '•138.8 r246.0 161.0 134.6 '•107.3 '•178.2 '191 120.2 113.3 May2*., 167.3 164.3 168.3 156.0 170.3 165.1 137.1 248.0 134.8 107.5 180.0 189 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, and heavy engineering; does not include data for Alaska and Hawaii. Note.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; 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 Ty ty p p e e o o f f o c w o n n e st r r s u h c ip ti o a n nd 1968 1969 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Total construction 1......................... 61,732 67,425 6,757 5,417 6,552 6,177 6,229 5,398 5,453 5,144 4,974 4,383 4,993 6,386 7,743 By type of ownership: Public........................................ 19,597 22,656 1,791 1,695 2,814 2,312 2,078 1,869 2,023 1,937 1,688 1,464 1,578 1,722 2,074 Private 1.................................... 42,135 44,769 4,966 3,722 3,738 3,865 4,151 3,529 3,430 3,208 3,286 2,919 3,415 4,663 5,669 By type of construction: Residential building 1.............. 24,838 25,219 2,466 2,122 2,347 2,347 2,349 2,176 2,301 1,947 2,045 1,631 1,819 2,729 ........... 22,512 25,667 2,412 1 N74o9nre2s,i4d6e9ntia2l, 4b6u9ild2in,3g31 1,943 1,862 1,701 1,693 1,711 1,654 2,199 Nonbuilding............................. 14,382 16,539 1,877 1 *544 1,361 1,361 1,549 1,278 1,289 1,497 1,235 1,041 1,520 1,458 Private housing units authorized... 1,330 1,299 1,263 1,321 1,306 1,275 1,326 1,371 1,521 1,487 1,768 1,635 '1,563 1,627 1,618 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ CONSTRUCTION A 63 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser Period Total Total d N f e r a e n o r s t m n i i a l Total Indus Bu C il o d m in gs b O u t i h l e d r Other Total M ta i r l y i H w ig ay h d v e m a v t & e e i n o lo t n p Other 2 trial mercial ings 1 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 16,039 197 0 91,266 63,079 29.275 33,806 5,930 10,521 5,841 11,459 28,297 782 1970—Apr.. 90,721 63,365 29,829 33,777 6,230 10,577 5,857 11.113 27,115 746 May. 89,702 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.. 89,084 60,675 27,014 33,661 5,915 10,027 5,932 11,787 28,409 592 Aug.. 89,987 61,493 27,536 33.957 6,241 10,188 5,959 11,569 28,494 845 Sept.. 91,012 62,725 28,768 33.957 5,741 10,375 5,686 12,155 28,287 738 Oct... 92,348 64,488 30,531 33.957 5,983 10,210 5,572 12,192 27,860 866 Nov.. 92,891 64,549 31,791 32,758 5,752 9,278 5,575 12,153 28,342 701 Dec.r r99,114 66,904 33.275 33,689 5,358 10,372 5.739 12,160 '32,210 768 1971 —Jan... '99,956 69,858 34,377 35,481 5,904 11,558 6,083 11,936 '30,098 1,016 Feb.' 102,558 70,845 35,648 35,197 5,596 11,846 5.740 12,015 31,713 924 Mar.f 102,238 72,197 36,923 35,274 5,244 12,169 5,637 12,224 30,041 882 Apr.. 104,496 73,735 38,077 35,658 5,869 11,837 5,884 12,068 30,761 844 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 underwritten home Period (N.S.A.) (N.S.A.) ship Region Type of structure ments (N.S.A.; Total N e o a r s t t h C N e o n r t t r h al South West fam 1- ily 2 f - a m to i l 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 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 '288 '237 '51 413 1970......................... 1,429 217 291 611 310 811 84.7 534 1,467 1,434 33 479 418 61 401 1970—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............... 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................ 1,725 238 320 724 435 946 110 669 115 111 4 37 32 5 25 Feb.'............ 1,754 238 292 745 479 985 110 659 105 102 3 32 27 5 28 Mar............... 1,950 255 439 800 456 1,045 121 784 168 167 1 41 33 8 36 Apr.*............ 1,903 246 454 812 391 1,081 101 721 203 200 3 53 45 8 43 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 □ JUNE 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 t p t i a t u u l l t a n i t o o io n n n a - l lab N o o r t f i o n r ce T l f a o o b r t c o a e r l Employed2 Un m e ra m e t n e p 1 l t o y (N.S.A.) (N.S.A.) (S.A.) Total Total In c n u o lt n u a ra g l r i In U pl n o e y m ed (pe S r . A ce .) nt; agriculture industries 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—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 6.0 142,088 56,308 86,665 83,783 78,698 75,140 3,558 5,085 6.1 May............... 142,285 56,331 87,028 84,178 78,961 75,503 3,458 5,217 6.2 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 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 10,623 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—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............................................... 70,590 18,728 623 3,198 4,521 15,141 3,745 11,785 12,849 Mar.............................................. 70,659 18,672 624 3,254 4,516 15,151 3,753 11,803 12,886 Apr.*............................................ 70,696 18,668 623 3,291 4,486 15,155 3,766 11,798 12,909 May*............................................ 70,826 18,698 625 3,271 4,498 15,232 3,784 11,785 12,933 NOT SEASONALLY ADJUSTED 1970—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............................................... 69,533 18,568 606 2,833 4,444 14,757 3,708 11,608 13,009 Mar.............................................. 69,875 18,528 608 2,955 4,457 14,831 3,727 11,697 13,072 Apr.*............................................ 70,356 18,506 617 3,156 4,450 15,015 3,751 11,798 13,063 May*............................................ 70,775 18,562 625 3,264 4,489 15,140 3,776 11,856 13,063 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
JUNE 1971 □ EMPLOYMENT AND EARNINGS A 65 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonallyadjusted1 Not seasonally adjusted1 Industry group 1970 1971 1970 1971 May Mar. Apr.p MayP May Mar. Apr.p May** 14,180 13,496 13,518 13,541 14,061 13,372 13,374 13,430 Durable goods.................................................................. 8,186 7,592 7,607 7,629 8,164 7,563 7,575 7,609 Ordnance and accessories...................................... 141 102 99 100 139 102 99 98 Lumber and wood products.................................. 501 496 495 499 499 483 485 497 Furniture and fixtures............................................ 375 370 372 377 371 368 368 372 Stone, clay, and glass products............................. 506 493 494 495 506 480 490 495 Primary metal industries........................................ 1,037 996 995 996 1,047 998 1,003 1,006 Fabricated metal products..................................... 1,060 989 1,020 1,021 1,054 982 1,012 1,015 Machinery............................................................... 1,340 1,170 1,160 1,155 1,343 1,181 1,168 1,157 Electrical equipment and supplies......................... 1,294 1,179 1,176 1,191 1,274 1,171 1,161 1,173 Transportation equipment..................................... 1,317 1,226 1,226 1,220 1,322 1,239 1,228 1,225 Instruments and related products......................... 286 255 255 257 284 255 254 256 Miscellaneous manufacturing industries............... 329 316 315 318 325 304 307 315 Nondurable goods............................................................ 5,994 5,904 5,911 5,912 5,897 . 5,809 5,799 5,821 Food and kindred products................................... 1,216 1,197 1,191 1,178 1,150 1,117 1,113 1,115 Tobacco manufactures........................................... 68 61 63 62 58 56 54 53 Textile-mill products............................................... 852 826 826 828 849 823 823 825 Apparel and related products................................ 1,206 1,212 1,219 1,222 1,202 1,219 1,208 1,219 Paper and allied products...................................... 551 530 531 529 546 524 526 524 Printing, publishing, and allied industries............ 681 670 667 669 678 669 667 667 Chemicals and allied products............................... 606 591 591 595 607 592 595 596 Petroleum refining and related industries.............. 118 118 117 117 118 114 115 117 Rubber and misc. plastic products......................... 412 431 433 441 408 427 429 436 Leather and leather products................................. 284 268 273 271 281 268 269 269 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 May Mar. Apr.*> MayP May Mar. Apr.P MayP May Mar. Apr.P Mayp 39.8 39.9 39.7 39.9 132.93 139.74 139.08 141.65 3.34 3.52 3.53 3.55 Durable goods..................................................... 40.3 40.5 40.1 40.5 143.07 151.50 150.02 153.09 3.55 3.75 3.76 3.78 Ordnance and accessories.......................... 40.8 42.1 41.6 41.8 146.47 157.59 157.35 160.09 3.59 3.77 3.81 3.83 Lumber and wood products...................... 39.7 40.0 40.1 40.1 117.09 122.40 123.11 126.77 2.92 3.06 3.07 3.13 Furniture and fixtures................................ 38.8 39.7 39.5 40.1 105.88 112.29 111.25 114.34 2.75 2.85 2.86 2.88 Stone, clay, and glass products................. 41.3 41.8 41.2 41.4 140.27 147.44 147.55 151.01 3.38 3.57 3.59 3.63 Primary metal industries............................ 40.2 40.7 40.7 41.1 157.56 168.50 170.97 173.46 3.90 4.13 4.17 4.20 Fabricated metal products......................... 40.6 40.3 40.0 40.4 143.26 146.40 146.89 156.26 3.52 3.66 3.70 3.71 Machinery................................................... 41.1 40.2 40.0 40.4 154.95 159.17 158.00 159.98 3.77 3.93 3.95 3.96 Electrical equipment and supplies............. 39.7 39.8 39.8 40.0 129.49 137.76 136.72 139.65 3.27 3.47 3.47 3.50 Transportation equipment......................... 40.3 41.9 40.2 40.5 164.02 183.40 175.08 180.67 4.06 4.43 4.41 4.45 Instruments and related products............. 40.1 39.7 39.7 39.9 132.00 137.76 137.46 139.30 3.30 3.47 3.48 3.50 Miscellaneous manufacturing industries... 38.7 38.8 38.7 38.8 108.47 114.07 113.58 113.78 2.81 2.94 2.95 2.94 Von durable goods............................................... 39.1 39.1 39.2 39.3 118.95 124.87 125.32 127.01 3.05 3.21 3.23 3.24 Food and kindred products....................... 40.7 40.4 40.4 40.4 127.98 133.27 134.19 135.07 3.16 3.34 3.38 3.36 Tobacco manufactures............................... 37.1 37.9 38.9 39.0 110.03 114.45 120.64 125.39 2.99 3.11 3.20 3.24 Textile-mill products.................................. 39.8 40.3 40.6 40.9 96.47 102.75 101.75 104.86 2.43 2.55 2.55 2.57 Apparel and related products................... 35.1 35.2 35.0 35.1 82.84 87.79 85.85 86.70 2.36 2.48 2.46 2.47 Paper and allied products.......................... 41.8 41.8 42.2 42.1 142.12 149.76 150.90 152.82 3.40 3.60 3.61 3.63 Printing, publishing, and allied industries. 37.7 37.5 37.5 37.7 145.89 153.38 154.05 156.79 3.88 4.09 4.13 4.17 Chemicals and allied products................... 41.5 41.4 41.7 41.7 151.42 158.98 162.15 161.77 3.64 3.84 3.87 3.87 Petroleum refining and related industries . 42.5 42.2 42.0 42.4 181.90 187.26 193.31 195.57 4.25 4.48 4.57 4.58 Rubber and misc. plastic products............ 40.0 40.2 40.3 40.4 123.29 132.47 133.27 135.41 3.09 3.32 3.34 3.36 Leather and leather products..................... 37.7 37.4 38.3 38.1 93.38 96.09 95.98 98.16 2.49 2.59 2.58 2.59 1 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 □ JUNE 1971 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h n m ip e e r - - F c a o o u n i a e d l l l t e r G a i l n c e a i c d s t y o n F i p a n i u n e s g h r d r s a A up p a k p n e a d e re p l T p t o r i a o r n t n a s Total M c ic a e a r d e l s c P o a e n r r a e l r R e a i c e n n r a g d e d a g O s a o e t n o h rv d d e s r tion tion ices 1929......................... 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—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............... 117.5 115.7 120.6 110.9 131.3 111.4 107.6 114.2 117.2 113.0 117.7 122.6 114.0 114.7 117.4 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 Mar............... 119.8 117.0 122.4 113.9 131.2 117.4 113.3 116.4 118.6 117.8 120.6 126.8 115.8 117.7 119.4 Apr............... 120.2 117.8 122.5 114.4 130.9 117.3 113.9 117.0 119.1 118.1 121.2 127.5 116.3 118.4 119.7 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Period m c t A o i o e m l d s l i p F u r a c o r t d m s c f f P e o a e s n r o e s o d d d e s d s Total t T e il e t e c x s . , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , R b e u e tc r b . , L b e u e tc m r . , P e a t p c e . r, M e a t l e c s, . t e c m M a q e h n e r u i a y d n n i p t F t e u u t r r c e n . , i N t e m m a r o l a i e l n n l i - s c - T e p m t q r o i a e o u r n n n i t p a s t 1 n c M e e o l i l u s a s 1960............................. 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—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................... 110.5 108.5 112.9 110.2 107.4 109.8 105.8 102.7 109.7 114.0 108.2 117.5 111.6 107.7 113.6 103.3 111.2 111.0 112.1 113.0 110.4 107.5 109.9 107.1 102.5 109.4 114.2 108.3 117.4 112.1 107.8 113.8 103.6 111.5 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 U3.8 108.7 115.1 108.9 111.9 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 Mar................... 113.0 113.0 113.7 112.8 106.9 112.5 112.8 104.5 109.1 123.4 109.3 116.5 114.9 109.6 120.9 109.5 112.8 Apr................... 113.3 113.0 113.5 113.3 107.5 114.0 113.0 104.5 109.0 124.6 109.6 117.8 115.0 109.7 121.6 109.7 112.7 May................. 113.8 114.0 114.5 113.7 107.8 114.4 114.2 104.3 108.7 124.9 109.9 118.5 115.3 109.9 121.8 109.8 112.5 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ PRICES A 67 WHOLESALE PRICES: DETAIL (1967=100) 1970 1971 1971 Group Group May Mar. Apr. May May Mar. Apr. May Farm products: Pulp, paper, and allied products: Fresh and dried produce. 121.6 125.3 120.8 127.5 Pulp, paper and products, excluding Grains.............................. 95.9 108.4 106.8 107.2 building paper and board........... 108.4 109.6 109.9 110.2 Livestock......................... 120.9 114.9 116.9 119.0 Woodpulp......................................... 107.1 112.2 112.2 112.4 Live poultry..................... 102.2 100.1 99.5 101.3 Wastepaper....................................... 133.4 104.8 107.7 107.6 Plant and animal fibers.. 91.0 88.9 89.4 90.3 Paper.................................................. 110.5 113.1 114.3 114.2 Fluid milk........................ 114.4 118.1 119.7 118.7 Paperboard........................................ 101.8 102.5 103.0 102.6 Eggs................................. 94.5 101.2 104.4 92.4 Converted paper and paperboard... 108.1 109.0 108.8 109.4 Hay and seeds................. 96.3 107.6 104.8 106.8 Building paper and board................ 101.5 101.4 101.7 102.7 Other farm products....... 115.5 116.1 114.4 113.6 Processed foods and feeds: Metals and metal products: Cereal and bakery products.......... 106.4 111.5 111.5 111.5 Meat, poultry, and fish.................. 116.7 112.9 113.3 116.4 Iron and steel..................................... 114.8 118.2 118.4 120.1 Dairy products............................... 111.1 115.0 115.5 116.2 Steelmill products............................. 113.8 118.0 118.5 120.7 Processed fruits and vegetables 110.2 111.9 113.0 114.0 Nonferrous metals............................. 130.0 113.7 117.2 117.2 Sugar and confectionery................ 114.5 119.2 118.6 119.2 Metal containers............................... 111.7 115.8 123.1 123.1 Beverages and beverage materials. 113.0 115.3 115.6 115.7 Hardware........................................... 110.2 115.5 115.6 115.6 Animal fats and oils....................... 140.0 142.1 135.9 131.5 Plumbing equipment......................... 112.2 113.2 114.9 115.8 Crude vegetable oils....................... 118.8 128.8 120.4 120.6 Heating equipment........................... 109.7 114.5 114.7 115.1 Refined vegetable oils..................... 115.3 152.5 125.2 128.3 Fabricated structural metal products 111.4 116.6 116.8 117.3 Vegetable oil end products............ 110.9 119.4 119.4 118.5 Miscellaneous metal products.... 112.6 117.9 118.0 118.2 Miscellaneous processed foods.... 110.2 113.7 114.3 113.9 Manufactured animal feeds........... 97.5 107.2 104.4 104.6 Textile products and apparel: Machinery and equipment: Cotton products........................... 105.1 107.8 108.9 109.6 Agricultural machinery and equip... 112.3 116.5 116.7 116.6 W Ma o n o m l p a r d o e d u fi c b t e s r . .. t . e .. x .. t . i . l . e .. . p ... r . o .. d ... u .. c .. t . s .. . 1 1 0 0 3 0 . . 5 5 9 9 4 7 . . 5 6 9 9 4 8. . 6 4 9 9 9 3. .7 5 C M o e n ta s l t w ru o c r t k io in n g m m a a c c h h in in e e ry ry a a n n d d e e q q u u i i p p . , 1 1 1 14 4 . . 1 4 1 1 2 1 0 6 . . 8 0 1 1 2 1 0 6 . . 9 6 1 1 2 1 1 7 . . 1 4 Apparel.......................................... 110.5 112.2 112.2 112.2 General purpose machinery and Textile housefurnishings.............. 102.5 103.5 103.5 104.3 equipment...................................... 112.6 117.8 118.3 118.7 Miscellaneous textile products. .. 106.7 106.7 118.7 113.6 Sp e e q c u ia i l p m in e d n u t. s .. t . r . y .. .... m ... a .. c .. h .. i . n .. e .. r . y .. .... a .. n .. d .. 114.8 119.3 119.7 120.4 Hides, skins, leather, and products: Electrical machinery and equip........ 105.6 109.7 109.5 109.4 Miscellaneous machinery................. 112.4 116.3 117.0 117.2 Hides and skins........... 108.1 105.5 121.1 121.4 Leather......................... 109.2 108.6 111.0 113.0 O Fo th o e t r w l e e a a r t . h .. e . r .. . p .. r .. o .. d .. u .. c .. t . s .. . 1 1 0 1 6 2 . . 3 9 1 1 1 0 6 7 . . 5 5 1 1 1 0 6 7 . . 6 7 1 1 1 07 6 . . 9 7 Furniture and household durables: Fuels and related products, and power: H Co o m us m eh e o rc ld ia l f u f r u n rn it i u tu re r . e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 2 . . 5 6 1 1 1 1 8 4 . . 2 0 1 1 1 18 4 . . 1 1 1 1 1 1 8 5 . . 1 0 C E C G l o o a e s k a c e t l f r . . u . i . . c . e . . . . l . p . s . . . . . o . . . . . . w . . . . . . . . . . e . . . . . . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 4 0 0 4 1 3 2 . . . . 8 5 6 2 1 1 1 1 4 0 7 1 5 1 6 9 . . . . 1 9 0 4 1 1 1 1 4 0 1 8 5 5 2 4 . . . . 9 9 3 0 1 1 1 1 0 8 4 1 6 2 7 2 . . . . 9 8 6 6 H H O Fl o o t o h u m 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 0 1 9 3 5 5 . . . . 3 2 7 2 1 1 1 9 1 0 0 3 9 0 7 . . . . 7 8 2 0 1 1 9 9 0 2 9 3 7 0 . . . . 1 1 8 7 1 1 9 9 2 0 9 3 0 7 . . . . 1 1 8 7 Crude petroleum................... 106.0 113.2 113.2 113.2 Petroleum products, refined. 102.0 105.9 105.3 107.4 Nonmetallic mineral products: Chemicals and allied products: Flat glass.......................................... 115.4 125.3 126.2 124.4 Industrial chemicals........................... 100.8 102.2 101.9 101.5 Concrete ingredients....................... 115.3 120.6 121.0 121.2 Prepared paint.................................... 112.4 115.1 115.9 115.9 Concrete products........................... 111.4 118.5 119.4 119.6 Paint materials................................... 102.5 103.5 103.5 103.5 Structural clay products excluding Drugs and pharmaceuticals............... 100.7 102.6 102.0 101.9 refractories................................... 109.8 113.6 114.5 114.5 Fats and oils, inedible....................... 131.4 144.3 143.0 138.8 Refractories..................................... 120.1 126.7 126.7 126.7 Agricultural chemicals and products., 88.5 93.9 94.1 93.8 Asphalt roofing............................... 101.2 123.6 123.6 123.6 Plastic resins and materials................ 90.6 87.3 88.2 88.2 Gypsum products............................ 101.2 98.9 101.0 101.2 Other chemicals and products.......... 108.7 111.5 111.8 112.1 Glass containers.............................. 119.6 131.5 131.5 131.5 Other nonmetallic minerals............ 111.5 121.4 122.0 124.8 Rubber and plastic products:1 Crude rubber........................................ 102.2 99.1 99.8 100.6 Tires and tubes..................................... 105.9 107.5 107.5 107.5 Transportation equipment: Miscellaneous rubber products........... 112.7 117.2 116.3 116.3 Plastic construction products (Dec. Motor vehicles and equipment. 107.0 113.8 114.1 114.2 1969 = 100)........................................ 97.6 95.9 95.5 94.6 Railroad equipment................... 114.9 119.9 119.9 120.4 Unsupported plastic film and sheeting (Dec. 1970=100).............................. 102.7 102.6 102.2 Laminated sheets, high pressure (Dec. 1970=100).............................. 99.5 101.0 99.1 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................... 108.8 113.1 112.5 112.4 Lumber....................... 114.7 129.0 131.5 132.8 Tobacco products............................. 1C9.9 116.9 116.5 116.5 Millwork.................... 116.8 116.2 118.6 120.3 Notions.............................................. 107.6 111.7 111.7 111.7 Plywood..................... 111.5 120.2 115.6 111.0 Photographic equipment and supplies 104.5 105.8 105.8 105.9 Other wood products. 117.2 118.3 119.3 119.2 Other miscellaneous products.......... 107.9 111.8 112.2 111.6 i 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 □ JUNE 1971 GROSS NATIONAL PRODUCT (In billions of dollars) 1970 1971 Item 1929 1933 1941 1950 1966 1967 1968 1969 1970 I II III IV I Gross national product..................................... 103.1 55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 959.5 971.1 985.5 989.91,020.7 Final purchases................................................. 101.4 57.2 120.1 278.0 735.1 785.7 857.4 922.9 973.1 957.9 968.1 980.0 986.31,019.3 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 466.3 492.1 535.8 577.5 616.7 603.1 614.4 622.1 627.0 646.4 Durable goods.............................................. 9.2 3.5 9.6 30.5 70.8 73.1 84.0 90.0 89.4 89.1 91.9 91.2 85.3 97.5 Nondurable goods........................................ 37.7 22.3 42.9 98.1 206.9 215.0 230.2 245.8 264.7 258.8 262.6 265.8 271.5 272.8 Services......................................................... 30.3 20.1 28.1 62.4 188.6 204.0 221.6 241.6 262.6 255.2 259.9 265.1 270.2 276.1 Gross private domestic investment................... 16.2 1.4 17.9 54.1 121.4 116.6 126.5 139.8 135.7 133.2 134.3 138.3 137.1 142.4 Fixed investment........................................... 14.5 3.0 13.4 47.3 106.6 108.4 118.9 131.4 132.3 131.6 131.2 132.7 133.5 141.0 Nonresidential............................................ 10.6 2.4 9.5 27.9 81.6 83.3 88.7 99.3 102.6 102.6 102.8 103.6 101.3 105.1 Structures.............................................. 5.0 .9 2.9 9.2 28.5 28.0 29.6 33.8 35.2 35.7 35.3 35.0 34.7 36.1 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 53.1 55.3 59.1 65.5 67.4 66.9 67.5 68.6 66.6 69.0 Residential structures............................... 4.0 .6 3.9 19.4 25.0 25.1 30.3 32.0 29.7 29.1 28.4 29.2 32.2 35.8 Nonfarm................................................ 3.8 .5 3.7 18.6 24.5 24.5 29.7 31.5 29.1 28.4 27.8 28.6 31.6 35.2 Change in business inventories.................. 1.7 -1.6 4.5 6.8 14.8 8.2 7.6 8.5 3.5 1.6 3.1 5.5 3.6 1.4 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 15.0 7.5 7.5 8.0 2.9 .9 2.6 5.0 3.0 1.2 Net exports of goods and services................... 1.1 .4 1.3 1.8 5.3 5.2 2.5 1.9 3.6 3.5 4.1 4.2 2.6 3.3 Exports.......................................................... 7.0 2.4 5.9 13.8 43.4 46.2 50.6 55.5 62.2 61.1 62.8 62.8 62.0 64.6 Imports......................................................... 5.9 2.0 4.6 12.0 38.1 41.0 48.1 53.6 58.6 57.6 58.7 58.6 59.3 61.3 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 156.8 180.1 200.2 212.2 220.5 219.6 218.4 221.0 223.2 228.7 Federal.......................................................... 1.3 2.0 16.9 18.4 77.8 90.7 99.5 101.3 99.7 102.3 99.7 98.6 98.2 98.4 National defense..................................... 13.8 14.1 60.7 72.4 78.0 78.8 76.6 79. 3 76.8 75.8 74.6 74.0 Other......................................................... 3.1 4.3 17.1 18.4 21. 5 22.6 23.1 23 0 22*9 22*9 23.5 24! 5 State and local.............................................. 7.2 6.0 7.9 19.5 79.0 89.4 100.7 110.8 120.9 117.4 118! 7 122*. 4 125.0 130^2 Gross national product in constant (1958) dollars........................................................... 203.6 141.5 263.7 355.3 658.1 675.2 707.2 727.1 724.1 723.8 724.9 727.4 720.3 732.7 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) 1970 1971 1929 1933 1941 1950 1966 1967 1968 1969 1970 Item I II III IV \v National income................................................ 86.8 40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.1 791.5 797.4 806.6 804.8 833.2 Compensation of employees............................. 51.1 29.5 64.8 154.6 435.5 467.2 514.1 564.2 599.8 592.2 596.4 603.8 606.7 625.2 Wages and salaries....................................... 50.4 29.0 62.1 146.8 394.5 423.1 464.8 509.0 540.1 534.4 537.4 543.4 545.2 560.6 Private....................................................... 45.5 23.9 51.9 124.4 316.8 337.3 369.1 404.9 426.1 422.6 424.0 428.9 429.1 440.7 Military..................................................... .3 .3 1.9 5.0 14.6 16.2 17.9 19.0 19.3 20.1 19.5 19.1 18.6 19.2 Government civilian................................ 4.6 4.9 8.3 17.4 63.1 69.5 77.8 85.1 94.6 91.7 93.9 95.4 97.5 100.6 Supplements to wages and salaries............... .7 .5 2.7 7.8 41.0 44.2 49.3 55.1 59.7 57.9 59.0 60.4 61.4 64.6 Employer contributions for social in surance .................................................. .1 .1 2.0 4.0 20.3 21.9 24.3 27.5 29.3 28.6 29.0 29.6 29.9 32.5 Other labor income.................................. .6 .4 .7 3.8 20.7 22.3 24.9 27.6 30.4 29.3 30.0 30.8 31.5 32.1 Proprietors’ income.......................................... 15.1 5.9 17.5 37.5 61.3 62.1 64.1 66.8 67.6 67.6 67.8 67.8 67.4 67.0 Business and professional........................... 9.0 3.3 11.1 24.0 45.2 47.3 49.1 50.5 51.4 50.6 51.2 51.7 52.0 52.2 Farm............................................................. 6.2 2.6 6.4 13.5 16.1 14.8 15.0 16.4 16.2 17.0 16.5 16.1 15.3 14.7 5.4 2.0 3.5 9.4 20.0 21.1 21.3 22.0 22.7 22.5 22.6 22.7 23.0 23.1 Corporate profits and inventory valuation adjustment..................................................... 10.5 -1.2 15.2 37.7 82.4 78.7 85.4 85.8 76.5 76.7 77.5 78.4 73.3 82.7 Profits before tax......................................... 10.0 1.0 17.7 42.6 84.2 79.8 88.7 91.2 81.3 82.6 82.0 84.4 76.3 86.4 Profits tax liability.................................... 1.4 .5 7.6 17.8 34.3 33.2 40.6 42.7 37.5 38.0 38.1 38.9 34.8 38.9 Profits after tax........................................ 8.6 .4 10.1 24.9 49.9 46.6 48.2 48.5 43.8 44.6 43.9 45.4 41.4 47.5 Dividends.............................................. 5.8 2.0 4.4 8.8 20.8 21.4 23.3 24.7 25.2 25.2 25.1 25.4 25.1 25.8 Undistributed profits........................... 2.8 -1.6 5.7 16.0 29.1 25.3 24.9 23.9 18.6 19.4 18.8 20.0 16.3 21.7 Inventory valuation adjustment.................. .5 -2.1 -2.5 -5.0 -1.8 -1.1 -3.3 -5.4 -4.8 -5.8 -4.5 -5.9 -3.0 -3.7 Net interest....................................................... 4.7 4.1 3.2 2.0 21.4 24.4 27.8 30.7 33.5 32.4 33.1 33.8 34.5 35.2 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
JUNE 1971 □ NATIONAL PRODUCT AND INCOME A 69 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1970 1971 1929 1933 1941 1950 1966 1967 1968 1969 1970 I II III IV Ip Gross national product..................................... 103.1 55.6 124.5 284.8 749.9 793.9 865.0 931.4 976.5 959.5 971.1 985.5 989.91,020.7 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 63.9 68.9 74.0 78.9 84.3 82.1 83.6 85.0 86.5 88.4 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 89.3 91.1 93.3 94.5 97.9 Business transfer payments................. .6 .7 .5 .8 3.0 3.1 3.3 3.5 3.6 3.6 3.6 3.6 3.7 3.7 Statistical discrepancy.......................... .7 .6 .4 1.5 -1.0 -.7 -2.4 -4.7 -1.8 -5.4 -3.1 -1.1 2.4 -.4 Plus: Subsidies less current surplus of gov ernment enterprises........................... -.1 .1 .2 2.3 1.4 .7 1.0 1.8 1.6 1.5 1.8 2.1 2.0 86.8 40.3 104.2 241.1 620.6 653.6 712.7 769.5 800.1 791.5 797.4 806.6 804.8 833.2 Less: Corporate profits and inventory valu ation adjustment............................... 10.5 -1.2 15.2 37.7 82.4 78.7 85.4 85.8 76.5 76.7 77.5 78.4 73.3 82.7 Contributions for social insurance.... .2 .3 2.8 6.9 38.0 42.4 47.1 53.6 57.1 56.0 56.7 57.6 58.1 63.2 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 66.3 75.8 75.1 78.5 82.3 Net interest paid by government and i consumers......................................... 2.5 1.6 2.2 7.2 22.2 23.6 26.3 29.0 31.8 31.0 31.4 32.2 32.51 32.5 Dividends.............................................. 5.8 2.0 4.4 8.8 20.8 21.4 23.3 24.7 25.2 25.2 25.1 25.4 25.ll 25.8 Business transfer payments............— .6 .7 .5 .8 3.0 3.1 3.3 3.5 3.6 3.6 3.6 3.6 3.7J 3.7 85.9 47.0 96.0 227.6 587.2 629.3 688.7 748.9 801.0 782.3 801.3 807.2 813.3 831.5 Less: Personal tax and nontax payments__ 2.6 1.5 3.3 20.7 75.4 83.0 97.5 117.3 116.3 117.0 117.7 114.2 116.1 116.4 Equals: Disposable personal income............... 83.3 45.5 92.7 206.9 511.9 546.3 591.2 631.6 684.8 665.3 683.6 693.0 697.2 715.1 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 479.3 506.0 550.8 593.9 634.6 620.5 632.1 640.2 645.5 665.3 Personal consumption expenditures. 77.2 45.8 80.6 191.0 466.3 492.1 535.8 577.5 616.7 603.1 614.4 622.1 627.0 646.4 Consumer interest payments............ 1.5 .5 .9 2.4 12.4 13.2 14.3 15.7 17.0 16.4 16.8 17.2 17.5 17.9 Personal transfer payments to for eigners............................................ .3 .2 .2 .5 .6 .7 .7 .8 .9 .9 1.0 1.0 .9 1.0 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 32.5 40.4 40.4 37.6 50.2 44.8 51.5 52.7 51.8 49.8 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 458.9 477.5 499.0 511.5 529.8 522.9 532.0 534.2 530.0 538.3 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 Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p Total personal income......................... 748.9 801.0 806.0 799.7 798.2 803.3 806.4 811.9 809.9 812.6 817.5 827.4 830.4 836.8 841.3 Wage and salary disbursements.......... 509.0 540.1 539.9 540.5 538.1 541.5 543.2 546.6 541.8 544.1 549.8 557.8 559.8 564.2 567.0 Commodity-producing industries... 197.5 201.2 202.3 200.9 201.3 202.1 202.0 201.5 196.8 196.8 202.3 203.0 202.5 204.5 205.1 Manufacturing only...................... 157.5 158.9 160.0 159.2 159.5 160.1 159.6 159.5 154.3 153.6 158.9 160.2 159.8 160.8 160.9 Distributive industries..................... 119.8 128.4 126.0 127.2 127.9 129.1 129.7 130.2 130.6 131.4 130.5 133.4 134.2 135.4 136.4 Service industries............................. 87.7 96.6 95.1 95.5 95.7 96.8 97.3 97.9 98.8 99.8 100.4 102.2 103.1 103.9 104.5 Government..................................... 104.1 114.0 116.5 116.9 113.2 113.5 114.2 117.0 115.6 116.1 116.6 119.2 120.0 120.4 121.0 Other labor income............................. 27.6 30.4 29.8 30.0 30.3 30.6 30.8 31.1 31.3 31.5 31.7 31.9 32.1 32.3 32.5 Proprietors’ income............................. 66.8 67.6 67.9 67.8 67.7 67.8 67.8 67.8 67.6 67.3 67.1 67.1 66.8 67.0 67.0 Business and professional............... 50.5 51.4 51.0 51.3 51.5 51.6 51.7 51.8 51.9 52.0 52.1 52.2 52.1 52.3 52.4 Farm................................................. 16.4 16.2 16.9 16.5 16.2 16.2 16.1 16.0 15.7 15.3 15.0 14.9 14.7 14.7 14.6 22.0 22.7 22.6 22.6 22.7 22.7 22.7 22.8 22.9 23.0 23.1 23.2 22.8 23.3 23.4 24.7 25.2 25.2 25.3 24.7 25.2 25.3 25.5 25.6 25.7 24.1 25.9 25.9 25.7 25.7 59.7 65.2 64.2 64.5 64.8 65.3 66.0 66.8 67.0 67.1 67.1 67.5 67.7 67.7 67.9 Transfer payments............................... 65.1 77.6 84.1 76.6 77.6 78.1 78.6 79.6 81.7 81.9 82.9 84.5 86.0 87.6 88.8 Less: Personal contributions for social insurance........................................... 26.0 27.8 27.7 27.7 27.6 27.8 28.0 28.2 28.0 28.1 28.4 30.6 30.7 30.9 31.1 Nonagricultural income........................ 726.7 778.6 783.0 777.0 775.7 780.9 784.0 789.7 787.9 791.0 796.2 806.2 809.2 815.7 820.2 Agriculture income............................... 22.2 22.4 23.0 22.7 22.4 22.4 22.3 22.2 21.9 21.6 21.3 21.2 21.2 21.1 21.1 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 □ JUNE 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 1970r 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 96.9 90.7 92.5 93.6 88.4 86.8 81.4 103.8 93.5 109.2 1 2 U.S. Government............................. 3.5 13.0 13.4 -3.6 12.8 -7.0 -5.4 -9.5 -.7 1.2 3.0 16.0 12.2 20.0 2 3 Public debt securities.................... 2.3 8.9 10.3 -1.3 12.9 -8.4 -5.8 -8.8 4.9 4.9 3.5 18.1 11.4 18.5 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 1.5 4 5 All other nonfinancial sectors.. 64.9 70.5 83.5 94.1 84.1 97.7 97.9 103.0 89.1 85.7 78.3 87.7 81.4 89.2 5 6 Capital market instruments.......... 39.9 48.9 50.2 53.9 65.0 58.3 57.6 55.1 51.2 51.7 51.6 60.7 64.3 83.2 6 7 Corporate equity shares............ .9 2.4 -.7 4.8 6.8 -2.1 .3 3.6 6.0 9.2 5.9 6.0 5.4 9.9 7 8 Debt capital instruments.......... 39.0 46.6 50.9 49.1 58.1 60.4 57.3 51.5 45.2 42.5 45.6 54.7 59.0 73.3 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 21.1 16.3 15.8 13.3 12.1 11.1 15.0 22.4 22.2 24.8 10 11 Mortgages.............................. 22.3 22.0 27.3 27.9 25.2 29.9 28.7 28.8 27.5 26.7 21.7 22.1 27.8 29.3 11 12 Home mortgages................ 11.4 11.6 15.2 15.7 12.3 16.1 16.5 16.6 15.7 13.9 10.7 11.1 14.2 13.2 12 13 Other residential................. 3.1 3.6 3.5 4.8 5.8 3.9 4.2 4.7 4.8 5.6 4.6 5.4 6.2 6.8 13 14 Commercial........................ 5.7 4.7 6.6 5.5 5.4 8.0 5.9 5.1 5.3 5.8 4.8 4.2 5.5 7.1 14 15 Farm................................... 2.1 2.1 2.1 1.9 1.8 1.9 2.2 2.3 1.8 1.5 1.5 1.4 2.0 2.2 15 16 Other private credit....................... 25.0 21.6 33.3 40.2 19.2 39.4 40.3 47.9 38.0 33.9 26.7 27.0 17.0 6.0 16 17 Bank loans n.e.c........................ 10.3 9.6 13.4 15.7 2.7 20.9 17.0 19.1 11.7 14.2 7.6 9.0 1.9 -7.6 17 18 Consumer credit........................ 7.2 4.6 11.1 9.3 4.3 12.1 10.2 10.8 8.9 7.5 4.8 6.1 6.2 .2 18 19 Open market paper................... 1.0 2.1 1.6 3.3 3.8 .7 4.9 4.7 2.7 1.0 5.0 2.2 .5 7.5 19 20 Other.......................................... 6.4 5.2 7.3 11.8 8.4 5.7 8.1 13.3 14.6 11.2 9.4 9.8 8.4 5.9 20 21 By borrowing sector—................ 64.9 70.5 83.5 94.1 84.1 97.7 97.9 103.0 89.1 85.7 78.3 87.7 81.4 89.2 21 22 Foreign.......................................... 1.5 4.1 3.0 3.7 2.6 2.8 4.0 6.0 2.3 2.4 2.6 1.7 2.2 4.0 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 9.7 19.5 23 24 Households.................................... 23.2 19.7 31.8 32.2 21.1 34.7 33.0 36.0 31.5 28.2 22.9 21.4 23.8 16.4 24 25 Nonfinancial business................... 33.8 37.9 38.8 49.7 48.1 45.6 47.4 51.3 49.4 49.9 43.4 54.3 45.6 49.4 25 26 Corporate................................... 24.9 29.3 30.3 39.1 38.7 35.0 37.1 41.1 37.4 41.0 35.8 45.1 34.3 39.4 26 27 Nonfarm noncorporate............... 5.5 5.0 5.8 7.4 6.2 8.0 7.1 6.6 8.7 6.4 4.6 5.4 8.1 6.9 27 28 Farm.......................................... 3.5 3.5 2.7 3.2 3.2 2.6 3.3 3.6 3.3 2.5 3.0 3.8 3.2 3.1 28 Funds advanced directly in credit markets 1 Total funds raised............................. 68.5 83.5 96.9 90.4 96.9 90.7 92.5 93.6 88.4 86.8 81.4 103.8 93.5 109.2 1 Advanced directly by— 2 U.S. Government......................... 4.9 4.6 4.9 2.5 3.2 3.1 2.5 1.7 3.7 2.3 3.9 3.6 3.4 1.9 2 3 U.S. Govt, credit agencies, net... .3 .5 -.2 .2 1.2 -.8 .4 -.8 -.1 1.5 -.7 1.6 .8 2.9 3 4 Funds advanced........................ 5.1 -.1 3.2 9.0 9.4 2.3 4.0 7.6 10.5 14.1 13.7 6.9 7.1 9.8 4 5 Less funds raised in cr. mkt.... 4.8 -.6 3.5 8.8 8.2 3.1 3.6 8.4 10.6 12.5 14.4 5.4 6.3 6.9 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 31.3 36.2 7.9 29.3 -.9 12.1 1.0 23.3 63.6 37.3 7 8 Funds advanced........................ 16.8 36.9 39.7 16.5 29.5 36.1 8.8 33.8 4.2 18.9 10.1 27.4 52.1 28.4 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 39.3 38.3 31.1 39.8 26.1 24.8 25.3 42.3 41.9 47.8 10 11 Savings institutions, net............ 7.8 16.8 14.6 10.4 14.7 16.4 15.9 13.3 6.8 5.6 4.7 15.3 18.0 20.7 11 12 Insurance................................... 19.3 18.7 22.0 21.8 24.9 25.2 19.8 27.5 20.6 19.5 23.2 27.1 24.1 25.3 12 13 Finance n.e.c., net..................... -1.3 -1.1 -2.4 -1.8 -.3 -3.2 -4.6 -1.0 -1.3 -.2 -2.6 -.1 -.1 1.7 13 14 Foreign.......................................... -1.8 2.8 2.5 1.3 10.9 11.9 .2 1.0 5.1 -1.1 9.4 9.5 4.9 19.6 14 15 Private domestic nonfinancial---- 19.1 -.2 12.3 39.5 6.1 6.5 46.5 18.6 55.0 37.9 41.2 18.0 -28.9 -5.8 15 16 Business..................................... 3.6 -.2 7.4 13.8 -1.0 2.0 15.8 14.1 18.1 7.0 15.1 12.3 -28.5 -2.9 16 17 State and local governments... 3.4 2.1 .4 6.1 -3.8 3.7 8.1 2.9 7.7 5.6 -2.5 -5.3 -7.8 .4 17 18 Households................................ 11.9 * 5.8 18.0 9.5 4.1 19.8 1.5 25.9 24.9 24.8 8.9 7.2 -2.8 18 19 Less net security credit............. -.2 2.2 1.4 -1.6 -1.4 3.3 -2.7 -.2 -3.2 -.4 -3.8 -2.1 -.2 .6 19 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors................... 68.5 83.5 96.9 90.4 96.9 90.7 92.5 93.6 88.4 86.8 81.4 103.8 93.5 109.2 1 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total.............................................. 42.8 51.3 60.8 44.2 67.2 58.1 58.9 26.8 47.1 43.8 55.1 72.1 68.3 73.6 2 3 Deposits.................................... 23.7 51.5 48.5 4.7 61.1 51.6 12.5 8.2 -7.9 5.9 13.9 54.1 97.1 79.4 3 4 Demand dep. and currency.. 4.0 12.4 14.8 7.1 6.2 13.1 5.9 6.6 7.6 8.2 2.0 7.0 7.3 8.6 4 5 Time and svgs. accounts.... 19.7 39.1 33.7 -2.4 54.9 38.5 6.6 1.6 -15.5 -2.3 11.9 47.1 89.9 70.8 5 6 At commercial banks. .. 12.5 22.5 20.8 -10.5 38.4 23.9 - 6.8 -7.4 -21.3 -6.4 7.4 31.9 68.2 46.3 6 7 At savings instit.............. 7.2 16.6 12.9 8.1 16.5 14.6 13.4 9.0 5.8 4.2 4.4 15.2 21.7 24.5 7 8 19.1 -.2 12.3 39.5 6.1 6.5 46.5 18.6 55.0 37.9 41.2 18.0 -28.9 -5.8 8 9 U.S. Govt, securities.............. 8.5 — 1.7 7.7 15.0 — 7.3 3.0 21.8 .9 23.2 14.1 6.5 -8.2 -8.3 -19.3 9 10 Pvt. credit market instr.......... 11.4 7.8 13.4 26.9 14.9 15.9 27.2 23.6 29.4 27.3 37.4 23.8 -21.8 20.2 10 11 Less security debt................. -.2 2.2 1.4 -1.6 -1.4 3.3 -2.7 -.2 -3.2 -.4 -3.8 -2.1 -.2 .6 11 Other sources: 12 Foreign funds................................ .7 4.6 4.3 9.6 2.4 8.2 13.8 14.8 10.4 -.6 10.8 2.7 -4.5 .7 12 13 At banks.................................... 2.5 1.7 1.8 8.3 -8.4 -3.7 13.7 13.8 5.3 .5 1.3 -6.8 -9.4 -18.9 13 14 Direct........................................ -1.8 2.8 2.5 1.3 10.9 11.9 .2 1.0 5.1 -1.1 9.4 9.5 4.9 19.6 14 15 Chg. in U.S. Govt, cash bal......... -.4 1.2 -1.1 .4 2.6 -6.8 -5.8 1.7 1.6 3.9 1.0 2.1 1.4 6.1 15 16 U.S. Government loans............... 4.9 4.6 4.9 2.5 3.2 3.1 2.5 1.7 3.7 2.3 3.9 3.6 3.4 1.9 16 17 Pvt. insur. and pension res........... 16.7 17.5 18.5 18.7 21.0 20.0 14.9 22.4 18.7 18.9 18.7 22.7 19.8 22.8 17 18 Sources n.e.c.................................. 3.8 4.3 9.5 15.0 .4 8.2 8.2 26.2 6.8 18.6 -8.1 .6 5.2 4.1 18 Digitized for FRASNEoRte .—1970 data revised from the Mar. 1971 Bulletin. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 □ FLOW OF FUNDS A 71.1 PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1968 1969 1970r Transaction category, or sector 1966 1967 1968 1969 1970 r IV I 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 10.1 7.1 -1.0 10.3 11.0 13.2 5.1 9.8 8.9 16.9 1 2 U.S. Government deposits........... -.4 1.1 -1.2 .6 2.5 -6.9 -5.7 1.7 1.9 4.2 1.1 2.0 .7 6.0 2 3 Money supply............................... 3.0 13.7 16.0 7.9 7.7 14.0 4.7 8.6 9.1 9.0 4.0 7.8 8.2 10.8 3 4 Domestic sectors....................... 3.9 13.4 15.7 7.6 7.4 13.6 4.8 8.0 8.5 9.0 2.6 8.2 8.6 10.3 4 5 Households............................ 3.1 9.4 11.1 5.9 3.5 15.5 -.9 10.2 9.5 5.1 7.4 7.4 1.0 -1.8 5 6 Nonfinancial business........... .7 .8 1.8 -.8 .3 -5.4 3.9 -5.6 -4.3 3.0 -4.3 -2.7 4.7 3.9 6 7 State and local governments. -.1 -1.0 .7 3.2 1.2 .6 2.5 3.4 3.9 2.9 -.3 1.0 1.1 3.1 7 8 Financial sectors................... -.1 1.0 .9 .5 1.2 .5 -1.1 1.4 .9 .8 .5 1.2 1.4 1.7 8 9 Mail float............................... .3 3.2 1.2 -1.2 1.1 2.6 .3 -1.3 -1.5 -2.8 -.7 1.3 .5 3.3 9 10 Rest of the world...................... -1.0 .3 .3 .3 .3 .4 -.1 .6 .6 * 1.4 -.4 -.5 .5 10 Time and savings accounts 1 20.2 40.8 33.3 -1.6 53.9 38.0 5.9 -.2 -15.4 3.4 16.8 44.3 87.5 67.1 1 2 At commercial banks—Total.... 13.3 23.8 20.6 -9.7 36.7 24.2 -7.6 -9.0 -21.2 -1.1 11.6 28.5 65.6 41.3 2 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 3 4 State and local governments... 1.3 2.4 3.2 -5.9 9.9 3.5 -3.7 -5.0 -10.3 -4.6 6.4 10.3 13.4 9.6 4 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 5 6 Households................................ 11.9 17.1 15.7 5.2 15.8 16.5 11.3 7.1 * 2.4 .5 15.5 22.5 24.5 6 7 At savings institutions.................. 7.0 17.0 12.8 8.1 17.2 13.9 13.5 8.8 5.7 4.5 5.2 15.8 21.9 25.8 7 Liabilities— 8 Savings and loan assns.......... 3.6 10.6 7.5 4.1 11.1 8.1 8.0 4.8 2.9 .7 2.0 9.8 15.6 16.9 8 9 Mutual savings banks........... 2.6 5.1 4.2 2.6 4.4 4.5 3.8 2.7 1.5 2.2 1.6 4.4 4.7 7.0 9 10 Credit unions......................... .8 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 10 Assets 11 Households............................ 7.2 16.6 12.9 8.1 16.5 14.6 13.4 9.0 5.8 4.2 4.4 15.2 21.7 24.5 11 12 Cr. union deps. at S & L’s... -.2 .3 -.1 * .7 -.7 .1 -.2 -.1 .3 .8 .6 .2 1.3 12 U.S. Government securities 1 8.7 12.5 16.7 5.5 21.1 -4.2 -.5 -1.0 10.0 13.8 17.5 21.5 18.6 26.9 1 2 Household savings bonds............ .6 1.0 .4 -.4 .3 .7 -.4 -.4 -.8 .1 -.9 -.2 .5 1.7 2 3 Direct excluding savings bonds... 1.8 7.9 9.9 -.9 12.6 -9.0 -5.4 -8.4 5.6 4.8 4.4 18.3 10.9 16.8 3 4 Budget agency issues..................... * .1 1.5 -.4 1.3 2.6 .8 -1.3 -.8 -.2 2.1 .2 1.0 1.7 4 5 Sponsored agency issues............... 5.1 -.6 3.2 9.1 8.2 2.7 4.8 8.4 10.6 12.5 14.4 5.4 6.3 6.9 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 21.1 -4.2 -.5 -1.0 10.0 13.8 17.5 21.5 18.6 26.9 7 8 U.S. Government (agency sec.)... 1.3 -.1 .1 -1.3 -.1 -1.0 -1.1 -2.2 -.8 -1.0 .1 * .1 -.6 8 9 Sponsored credit agencies............ 1.0 * -.1 -.2 1.7 .1 -2.0 .3 -.5 1.2 2.0 -.5 1.0 4.4 9 10 Direct marketable..................... .3 .9 -.1 -.5 1.9 .1 -2.0 .3 -.8 .4 2.8 -.8 1.2 4.3 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 7.9 5.6 12 13 Foreign.......................................... -2.4 2.1 -.5 -1.8 9.1 6.8 -4.5 -1.8 2.7 -3.7 8.0 8.2 4.7 15.5 13 14 Commercial banks........................ -3.6 9.3 3.4 -9.5 9.0 -4.1 -16.2 -7.2 -9.5 -5.2 .5 6.8 11.0 17.6 14 15 Direct......................................... -3.4 6.3 2.2 -9.3 5.8 -5.0 -14.4 -8.8 -7.6 -6.2 -.7 6.8 8.9 8.0 15 16 Agency issues............................. -.2 3.0 1.3 -.3 3.2 .9 -1.8 1.6 -1.9 1.0 1.3 * 2.1 9.6 16 17 Nonbank finance........................... .4 -1.9 2.2 -.8 3.7 -4.8 -2.4 4.8 -4.7 -.8 -.7 9.8 2.2 3.7 17 18 Direct......................................... -.2 -2.2 .4 -2.4 1.5 -6.5 -4.4 2.7 -7.3 -.6 -3.2 7.6 -.7 2.5 18 19 Agency issues............................. .5 .3 1.8 1.6 2.2 1.7 2.0 2.0 2.6 -.2 2.6 2.2 2.9 1.2 19 20 Pvt. domestic nonfin..................... 8.5 -1.7 7.7 15.0 -7.3 3.0 21.8 .9 23.2 14.1 6.5 -8.2 -8.3 -19.3 20 21 Savings bonds—Households... .6 1.0 .4 -.4 .3 .7 -.4 -.4 -.8 .1 -.9 -.2 .5 1.7 21 22 Direct excl. savings bonds........ 3.3 -3.0 4.1 8.7 -10.5 -.1 16.1 -5.1 18.8 5.0 -2.7 -9.2 -10.8 -19.2 22 23 Agency issues............................. 4.7 .4 3.2 6.7 2.9 2.4 6.2 6.4 5.2 9.1 10.1 1.3 2.0 -1.8 23 Private securities 1 Total net issues, by sector................ 18.5 28.2 23.9 27.7 42.3 29.3 30.4 28.8 25.1 26.3 31.3 41.0 39.3 57.7 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 27.0 12.2 14.7 14.9 16.1 19.8 20.2 28.9 25.7 33.4 3 4 Finance companies....................... .8 1.0 .8 1.6 2.5 1.0 1.4 2.2 1.4 1.3 1.3 2.3 2.8 3.8 4 5 Commercial banks........................ .1 .2 .2 .1 .1 -.1 .1 .3 * -.1 .2 * * * 5 6 Rest of the world......................... .5 1.3 1.3 1.5 .9 2.0 1.5 2.0 2.0 .5 .7 -.4 2.0 1.3 6 7 18.5 28.2 23.9 27.7 42.3 29.3 30.4 28.8 25.1 26.3 31.3 41.0 39.3 57.7 7 8 Households.................................... 3.2 -1.8 -1.2 2.7 7.7 3.8 3.4 -2.0 4.7 4.8 6.9 9.9 2.6 11.3 8 9 Nonfinancial corporations............ 1.0 -.2 -1.1 5.1 1.4 -.9 6.7 3.1 5.5 5.0 .6 2.0 1.6 1.2 9 10 State and local governments........ 1.1 1.9 -.4 2.6 .2 -1.8 4.9 3.0 .9 1.4 .4 .7 -.8 .6 10 11 1.9 9.8 8.9 .3 10.8 13.6 1.6 2.4 -1.1 -1.7 5.0 8.9 14.5 14.7 11 12 Mutual savings banks................... .3 2.3 1.6 .6 1.7 1.5 1.1 1.0 * .2 1.2 2.0 1.2 2.5 12 13 Insurance and pension funds....... 12.9 16.6 17.6 16.8 18.7 19.8 16.3 20.5 15.0 15.4 17.0 20.6 13.9 23.2 13 14 Finance n.e.c.................................. -2.2 -.9 -3.6 -2.5 .5 -10.3 -7.6 * —. 6 -1.7 -.3 -3.6 4.2 1.8 14 15 Security brokers and dealers... .1 .2 -.9 .5 1.1 -9.2 .2 1.1 2.8 -2.2 .5 .6 5.6 -2.4 15 16 Investment companies, net....... -2.4 -1.1 -2.8 -3.0 — .6 -1.2 -7.8 -1.1 -3.4 .4 -.8 -4.2 -1.5 4.2 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 2.4 5.5 7.6 4.7 6.1 4.2 2.1 3.2 3.9 .4 18 19 .3 .6 2.3 2.1 1.4 3.7 3.9 .9 .7 2.9 .6 .5 2.1 2.3 19 Bank loans n.e.c. 1 9.0i 7.5 15.7 17.8 2.1 23.0 18.0 24.0 11.1 17.6 5.2 10.3 5.0 -11.8 1 2 .4 2.1 3.1 2.4 .8 4.3 2.9 4.2 .9 1.5 2.3 -1.1 1.2 1.0 2 3 Nonfinancial business................... 10.1 7.7 10.6 13.5 2.3 17.5 13.9 14.4 12.3 12.8 4.6 10.4 .9 -6.7 3 4 Rest of the world......................... -.2; -.2 -.3 -.2 -.4 -.9 .2 .6 -1.5 -.1 . 6 -.3 -.2 -1.9 4 5 -1.3i -2.1 2.3 2.1 -.5: 2.1 .9 4.9 -.6 3.4 -2.3 1.2 3.0 -4.1 5 Digitized for FRASER http://fraser.stlouisfed.org/ Note.—1970 data revised from the Mar. 1971 Bulletin. Federal Reserve Bank of St. Louis
FINANCIAL ASSETS AND LIABILITIES, DECEMBER 31, 1970 (Amounts outstanding in billions of dollars) (A) All sectors Private domestic nonfinancial sectors Financial sectors U.S. Rest State Govt. Federally Private of the Total1 Discrepancies Sector Households Business and local Total Total sponsored Monetary Commercial nonbank world govts. credit authority banks finance agencies Transaction category A L A L A L A L A L A L A L A L A L A L A L A L A 1886.9 451.3 73.4 3411.6 ......... 102.4 ......... 1449.1 ......... 46.5 85.2......... 499.3 818.1 ......... 118.8 ......... 4082.0 ......... ......... 1 482.0 728.8....... 154.6......... 1365.4........ 346.7......... 1363.4......... 45.5......... 85.2......... 468.0......... 764.6......... 138.6......... 3214.2 ........... 2 3 Gold................................. 1.2 ......... 10.7......... 10.7......... 32.7 44.6......... ........... 3 4 Official foreign exchange... .4 .. . .3 . . .3 ........... ............ 6.........................6 .... 4 5 IMF position.............................. 2 0 ... —.1 ... — .1 ............ .... 1.9 ........... 1.9 .... 5 6 Treasury currency.................... 6.0 7.5 ... 7.5 ......... 7.5 6.0 -1.6 6 7 Demand dep. and currency ........... 235.1 ............ 52.0 ........... 183.1 214.5 235.1 ........... 7 8 Private domestic.............. 122.2 .. .. 49.6 12.5 . 184.2 ........... 16.8 222.3 .2 . ... ............ 50.1 .. .. 172.2 16.6............ 200.9 222.3 21.4 8 9 U.S. Government............ 10.3 ......... ........... 9.5 ........... 1.6 ........... 7.9 10.3 9.5 -.8 9 10 Foreign............................. ........... 3.3 .........................3 ........... 3.0 3.3............ ........... 3.3 ......... 10 11 Time and savings accounts 404.8 ............ 454.3 ........... 1.6 464.6 1.6............ ........... 464.6 11 12 Time deposits................... 172.6 ............ 26.4 23.1 . .. 222.1 ........... .4 ... .1 230.8 ........... 230.8 .1 ............ 8.3............ ......... 230.8 .... 12 13 Savings accounts............. 232.2 ............ 232.2 ............ 1.5 233.7 1.5 233.7 ......... 233.7 ......... 13 14 Life insurance reserves........ 130.0 ............ 130.0 ........... ........ 7.3 ......... 122.6 ......... 122.6 ......... 130.0 ........... 14 15 Pension fund reserves......... 233.6 ............ 233.6 ........... ........ 27.5 ......... 206.1 ......... 206.1 ......... 233.6 15 16 Interbank claims 2.............. 36.5 36.5 4.6 31.2 31.9 5.3 ......... 36.5 ......... 16 17 Corporate shares 3.............. 747.0 ___ 747.0 ........... 146.5 47.6 146.5 47.6 18.1 ............ 911.6 47.6 ......... 17 18 Other credit mkt. instr........ 220.9 461.6 71.3 487.9 33.7 148.2 325.9 1097.7 56.9 301.4 1155.7 113.7 44.9 38.9 62.2............ 435.2 4.7 613.3 70.1 25.0 50.8 1563.5 1563.5 ......... 18 19 U.S. Govt, securities 4... 100.9 9.9 .... 22.1 132.9 * 299.9 186.1 38.9 4.2 38.9 62.1 ............ 75.5............ 44.2........... 19.7............ ......... 338.8 ......... 19 20 State & local govt, oblig.. 38.2 ___ 9.1 2.8 143.4 50.1 143.4 93.3 69.3............ 24.0............ ........... 143.4 20 21 Corp. & fgn. bonds........ 39.7 ___ . . 167.9 6.7 46.3 167.9 158.5 25.2 2.5 2.4 156.0 22.9 1.1 12.8 ......... 206.0 21 22 Home mortgages............. 13.4 272.6 .. . 2.5 2.2 15.6 275.1 6.0 1.5 258.1 3.1 15.6 ......... 41.9............ 200.6 3.1 ......... 279.7 22 23 Other mortgages.............. 28.7 20.5 . . 151.0 28.7 171.4 3.5........... 139.2 7.5........... 30.6 101.1 ........... 171.4 ......... 23 24 Consumer credit.............. ......... 126.8 30.4............ 30.4 126.8 96.5........... 50.1......... 46.4......... ......... 126.8 24 25 Bank loans n.e.c.............. ......... 20.8 .. .. 116.9 ......... 137.7 156.9 13.1 156.9 ............ ......... 13.1 ......... 6.1 ......... 156.9 25 26 Other loans............................. ......... 20 9 21.9 49.6 ......... 4.8 21.9 75.3 47.4 67.1 33.4 17.6......... .i ......... 8.4 2.3 41.1 31.0 4.1 31.9 140.6 26 27 Security credit...................... 2.2 10.1 2.2 10.1 19.7 11.8 12.0......... 7.6 11.8 .3 .3 22.2 ......... 27 28 To brokers and dealers.. 2.2 2.2 ....... 9.3 11.8 8.5......... .9 11.8 .3 ........... ......... 11.8 ......... 28 29 To others.......................... 10 1 10.1 10.3 . .. 3.5............ 6.8......... ...................3 ......... 10.3 ......... 29 30 Taxes payable...................... 21.8 4.1 4.1 21.8 20.3 .... 2.6 ...................1 ......... 1.0 ......... 1.5 ......... 24.4 ......... 30 31 Trade credit ^...................... 5 3 202.4 143.8 . . 6.4 202.4 155.5 6.6 4.2 4.3 .. . 4.3 ........... 5.6 6.9 218.9 166.6 -52.3 31 32 Miscellaneous............................. 26.2 5.1 101.7 75.4 127.9 80.4 4.5 .3 49.7 122.8 1.3 1.6 ......... 1.9 20.2 43.1 28.2 71.1 25.5 78.1 207.5 281.6 74.1 32 1 Where no amount appears in total-asset column, total assets are identically equal to amount shown 4 Includes savings bonds, other nonmarketable debt held by the public, issues by agencies in the budget for total liabilities. (CCC, Export-Import Bank, GNMA, TVA, FHA) and by sponsored credit agencies in Financial sectors, 2 Claims between commercial banks and monetary authorities: member bank reserves, vault cash, F.R. and loan participation certificates. Postal savings system deposits are included in line 35. loans to banks, F.R. float, and stock at F.R. Banks. 5 Business asset is corporate only. Noncorporate trade credit is deducted in liability total to conform 3 Assets shown at market value; nonbank finance liability is redemption value of shares of open-end to quarterly flow tables. investment companies. No specific liability is attributed to issuers of stocks other than open-end invest ment companies for amounts outstanding. Note.—Data revised from the Mar. 1971 Bulletin. A 71.2 FLOW OF FUNDS □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FINANCIAL ASSETS AND LIABILITIES, December 31, 1970—Continued (Amounts outstanding in billions of dollars) (B) Private nonbank financial institution State and Savings Mutual Life Private local govt, Other Agencies Banks in Open-end Security Sector Total and loan savings Credit insurance pension retirement insurance Finance of foreign U.S. investment brokers assns. banks unions cos. funds funds cos. cos. banks possessions cos. and dealers Transaction category A L A L A L A L A L A L A L A L A L A L A L A L A L 1 Total assets................................ 818.1 ......... 176.6 ......... 79.0......... 15.4......... 199.0 ......... 107.2 57.9......... 51.8......... 60.3 . .. 6.1 2 8 47 6 14 4 1 ......... 164.6......... 73.3......... 15.4......... 186.9.... 107.2 57.9 34 7 56 2 6 1 2 8 47 6 12 0 2 3 Demand deposits and currency 16.6......... 1.5......... 1.2......... .7......... 1.6......... 1.8 .6 1.4......... 3.6 ....... 1.2 . . .3 7 19 3 4 Time and savings accounts.... 1.6 233.7 .1......... 1.5......... 4 5 At commercial banks............ .1......... .1......... 5 6 At savings institutions.......... 1.5 233.7 ......... 146.7......... 71.6 1.5 15.4 6 7 Life insurance reserves.............. ......... 122.6 ......... 122.6 8 Pension fund reserves............... ......... 206.1 ......... 41.0 ......... 107.2......... 57.9 8 9 Corporate shares3.................... 146.5 47.6 2.5......... 14.5 64.3 8.0......... 16.9 39.7 47.6 7 9 10 Other credit mkt. instr.............. 613.3 70.1 164.4 14.2 73.6......... 13.3......... 173.9 37.1 47.4......... 29.3......... 56.7 55.9 4.0 1.5 7 2 5 0 10 U U.S. Govt, securities........ 44.2......... 12.3......... 4.9......... 4.0......... 3.7 6.8......... 4.3......... 3.9 . . . . .3 9 3 4 11 12 State & local govt, oblig.. 24.0 .2 3.3......... 2.0......... 17.4......... .2 9 12 13 Corp. and fgn. bonds........ 156.0 22.9 8.3......... 74 2 29.2 31.8......... 7.4 22.9 1 4 3 7 13 14 Home mortgages............... 200.6 3.1 125.3 3.1 37.3 .8......... 26.6......... 4.2......... 5.9......... .5 14 15 Other mortgages................ 101.1 25.3......... 20.6......... 47.8......... 6.9 . . .2 3 15 16 Consumer credit................ 46.4......... 1.5......... 1.2 12.5......... 31.1 16 17 Bank loans n.e.c................ ......... 13.1 ..................5 12 7 17 18 Other loans........................ 41.1 31.0......... 10.6 1.0........ 18.1......... 19.7 20.4 .2 2 1 18 19 Security credit............................ 7.6 11.8 .9 6.8 11.8 19 20 To brokers and dealers........ .9 11.8 .9 11 8 20 21 Other...................................... 6.8......... 6 8 21 22 Taxes payable............................ ..................1 ..................8 .2 .3 2 22 23 Trade credit............................... 4.3......... 4.3 23 24 Miscellaneous............................ 28.2 71.1 10.7 3.6 1.7 1.7 8.9 22.4 4.0......... 1.8 ... .. . 34.5 6 1 1.0 2.8 24 For notes see facing page. JUNE 1971 □FLOW OF FUNDS A 71.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 72 U.S. BALANCE OF PAYMENTS o JUNE 1971 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1969 1970 Item 1968 1969 1970* IV II III IV* Transactions other than changes in foreign liquid assets in U.S. and in U.S. monetary reserve assets—Seasonally adjusted Exports of goods and services—Total 1 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 88 114 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, mediumterm 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
JUNE 1971 o 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 IV p Transactions by which balances were settled—Not seasonally adjusted A. To settle balance on liquidity basis........................... -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 -44 14 395 422 SDR’s.................................................................. 16 — 53 -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 7.................................................... -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 B. Official reserve transactions....................................... -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) Exports ] Export surplus Period 1968 1969 r 1970 1971 1968 1970 1971 1968 1969 r 1970 1971 Month: Jan... 2,814 32,161 3,406 3,735 2,687 3 2,002 3,223 3,686 127 159 183 49 Feb.. 2,775 3 2,266 3,547 3,690 2,592 3 2,672 3,278 3,553 184 -406 269 136 Mar.. 3 2,439 3 3,188 3,376 3,815 3 2,589 3 2,982 3,218 3,569 -150 206 158 245 Apr.. 3 2,855 33,318 3,409 3,543 3 2,604 3 3,183 3,263 3,758 251 135 146 -215 May. 2,740 3 3,268 3,661 2,755 3 3,257 3,338 -15 11 323 June. 2,870 33,179 3,730 2,792 33,152 3,266 78 27 465 July., 2,858 3,182 3,699 2,725 3,074 3,255 133 108 444 Aug.. 3 2,950 3,366 3,592 2,872 3,163 3,346 78 203 246 Sept.. 3 3,211 3.341 3,553 2,951 3.078 3.428 261 263 125 Oct.. 3 2,631 3.342 3,689 2,736 3,192 3,501 -105 150 188 Nov.. 2,972 3,398 3,499 2,883 3,180 3.428 89 218 71 Dec.. 2,977 3,280 3,570 2,908 3.078 3,404 70 202 166 Quarter 1.... 8,028 7,615 10,328 11,240 7,867 7,655 9,719 10,808 161 -40 609 432 11... 8,465 9,765 10,800 8,151 9,591 9,867 314 174 933 111... 9,019 9,889 10,845 8,548 9,315 10,029 471 574 816 IV... 8,580 10,020 10,758 8,527 9,450 10,333 53 570 425 Year4.. 34,063 37,332 42,662' 33,226 36,043 39,963r 837 1,289 2,699 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 □ JUNE 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) 1970 1971 Area and country 1962 1963 1964 1965 1966 1967 1968 1969 1970 III IV Western Europe: Austria............................. -143 -82 -55 -100 -25 Belgium............................. -63 -40 -83 -58 France............................... -456 -5i8 -405 -884 -6oi 600 325 -129 -129 Germany, Fed. Rep. of. . -225 500 Ireland............................... -1 -2 -2 -52 41 Italy................................... 200 -80 -85 -209 -76 Netherlands...................... -60 -35 -19 -30 -25 Spain................................. -146 -130 -32 -180 Switzerland....................... 102 -81 -50 -30 -50 -25 '-75 United Kingdom.............. -387 ’329 618 150 -879 -835 Bank for Intl. Settlements. 200 Other................................. -12 -35 -49 16 -47 11 -29 -1 -21 15 Total. -1,105 -399 -1,299 -659 -980 -669 969 -204 -27 -180 -85 Canada .... 190 200 150 50 Latin American republics: Argentina ...................... -39 -25 -25 -23 Brazil............................... -3 -23 Colombia........................ 7 Venezuela........................ Other............................... -5 -6 -29 -80 -9 -4 -66 Total. 175 32 56 17 -41 -65 -54 -131 -9 -4 -111 Asia: Iraq................ -10 -4 -21 -42 Japan.............. -56 -119 -119 Lebanon........ -32 -11 ' “Ji -95 -35 Malaysia........ -1 -34 Philippines. . . 25 9 40 -8 -i Saudi Arabia. -50 Singapore.... -81 11 Other.............. -47 -13 -14 -14 -22 -75 -9 -91 2 23 -1 -41 -71 21 Total.................. -93 -24 -86 -44 -366 42 -213 24 -1 -197 -15 All other........................ -1 -16 -22 -166 3-68 -1 -81 -1 -2 -75 -1 Total foreign countries. -833 -392 -36 -1,322 -608 -1,031 -1,118 957 4-631 -14 -73 4-563 -102 Intl. Monetary Fund5.. 6-225 177 22 -3 10 -156 -322 4142 -7 Grand total........ -833 -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -14 -395 -422 -109 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 SI7 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
JUNE 1971 o U.S. RESERVE ASSETS; POSITION IN THE IMF A 75 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r of Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e u C c r r r i o e t r e i i e n b s g n l n e p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l2 ld st T o r c e k a 1 sury v c fo e u C c r r i r o e t e r i i e n s b g 5 n l n e p R I o e M s s i i n e t F 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 May... 16,165 11,900 11.367 980 2,360 925 1960... 19,359 17,804 17,767 1,555 June. .. 16,328 11,889 11.367 1,132 2,350 957 July. . . 16,065 11,934 11.367 716 2,454 961 1961... 18,753 16,947 16,889 116 1,690 Aug.... 15,796 11,817 11.367 695 2,323 961 1962... 17,220 16,057 15,978 99 1,064 Sept.... 15,527 11,494 11,117 1,098 1,944 991 1963... 16,843 15,596 15,513 212 1,035 Oct.... 15,120 11,495 11,117 811 1,823 991 1964... 16,672 15,471 15,388 432 769 Nov.... 14,891 11,478 11,117 640 1,812 961 1965... 15,450 613,806 613,733 781 6 863 Dec.... 14,487 11,072 10,732 629 1,935 851 1966... 14,882 13,235 13,159 1,321 326 1971 1967... 14,830 12,065 11,982 2,345 420 Jan... . 14,699 11,040 10,732 491 1,700 1 ,468 1968... 15,710 10,892 10,367 3,528 1,290 Feb... . 14,534 11,039 10,732 327 1,700 1,468 1969... 7 16,964 11,859 10,367 72,781 2,324 Mar__ 14,342 10,963 10,732 256 1,680 1,443 1970... 14,487 11,072 10,732 629 1,935 851 Apr.. .. 14,307 10,925 10,732 257 1,682 1,443 May... 13,802 10,568 10,332 318 1,678 1,238 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. transactions with IMF Transactions by U.S. other countries reserve Period with IMF position in IMF P s t u a d io y b o n m o s 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 s i e g a n i 2 n c n I i M nc F o m n e et P d u o rc l o l h a f a r s s e 3 s pu d r o R c i l h n l e a a r s s es 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 ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2.836 55 2,324 1970. 1,155 6712 "150 25 -854 741 1,929 4.765 71 1.935 1970—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 -3 -23 11 235 5.000 75 1.700 Feb.. * 5.000 75 1.700 Mar.. 20 20 5,020 75 1,680 Apr.. -3 1 -2 5,018 75 1,682 May. -2 7 4 5,022 75 1,678 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. □ JUNE 1971 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreignt countries Liabilities to non Monetary Fund arising monetary inti, and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Non pe 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 v e o n e l s t 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 i e r . r l S t e s d . M n b G o U a a o a t o b n n . r e v S l k d s d e t . e s , 4 t c m T b o U a a i o n u r a b b e n n v r . r l S l a y d e k e d e s . r e s t t Total i i p t S b n l i t i o e a h e a b r s U n r b o y t m k i e r r . l S t e s d . M n b G o U a a o a o t b n r n . e S v k l d d s e t . e s , t 4 Total i i n p S t b l i t i o e h a e a U b r s n r b o y t . m k e i r S r l t e d s . 6 M n b G o U a a o a b t o n r n . e S k l v d d s e t . e s , t 4 notes 1957........... 715,825 200 200 7,917 5,724 542 1958. . . 716,845 200 200 8,665 5,950 552 1959 . . 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 1960 8........ \ /2 2 0 1 , , 9 0 9 2 4 7 8 8 0 00 0 8 8 0 00 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0, , 2 2 1 1 2 2 8 8 6 7 6 6 7 7 , , 5 59 9 1 8 7 7 , , 0 0 4 4 8 8 5 54 5 3 0 1 1 , , 5 5 4 2 1 5 7 75 50 0 7 79 7 1 5 1961 8........ J \2 2 2 2 , , 9 85 3 3 6 8 80 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 30 0 1 1 0 0, , 9 9 4 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 5 1 1 6 6 1 1 , , 9 9 4 4 8 9 7 7 0 0 3 4 1 1 J 2 2 4 4 5 5 1962 8........ \ J 2 2 4 4 , , 0 0 6 6 8 8 8 8 0 00 0 8 8 0 0 0 0 1 1 2 2 , ,7 7 4 1 8 4 1 1 1 1 , , 9 9 6 9 3 7 7 7 5 5 1 1 8 8, ,3 35 5 9 9 7 7 , , 9 9 1 1 1 1 4 44 48 8 2 2, , 1 1 6 9 1 5 1 1, , 2 2 5 8 0 4 9 91 1 1 1 1 Q£'l ft /26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 \26,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 1 Q£A ft /28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 \29,002 800 800 15,424 13,220 1,125 1,079 11,056 10,680 376 1,722 818 904 1965........... 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1 Q££ ft (29,904 1,011 211 800 13,600 12,484 860 256 14,387 13,859 528 906 581 325 129,779 1,011 211 800 13,655 12,539 860 256 14,208 13,680 528 905 580 325 1l yof 0ft........ \ /3 3 3 3 , , 1 27 1 1 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 90 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 58 8 6 6 9 7 1 7 4 4 8 73 7 2 20 0 4 4 1l yQo£oQ >0........ / \3 3 3 3 , , 6 8 1 2 4 8 1 1 , , 0 0 3 3 0 0 2 23 30 0 8 8 0 0 0 0 1 1 2 2, , 4 5 8 4 1 8 1 1 1 1 , , 3 3 1 1 8 8 4 5 6 29 2 7 7 0 0 1 1 1 19 9 , , 3 5 8 2 1 5 1 1 8 8, ,9 91 16 6 4 6 6 0 5 9 7 7 2 2 5 2 6 6 8 8 3 3 4 3 2 9 1969jTjiert/c*. ft 1fvt / |4 41 1 , , 7 9 7 0 6 0 1 1 , , 0 0 1 19 9 2 2 1 1 9 9 8 80 0 0 0 1 1 1 1 , , 9 9 9 9 4 2 1 11 1 , , 0 0 5 5 6 4 3 38 8 3 3 5 5 5 5 5 5 2 2 8 8 , , 1 2 0 2 6 4 2 27 7 , , 6 5 9 7 5 7 5 5 2 2 9 9 6 66 5 3 9 6 6 1 0 3 9 5 5 0 0 1970-Mar... 42,972 1,010 210 800 14,767 13,958 380 429 26,390 25,914 476 805 755 50 Apr.r. 43,359 1,010 210 800 14,414 13,605 380 429 27,170 26,685 485 765 714 51 Mayr. 43,223 1,010 210 800 14,797 13,986 382 429 26,713 26,212 501 703 652 51 Juner. 43,380 1,010 210 800 15,306 14,480 397 429 26,383 25,847 536 681 629 52 July*".. 43,509 1,010 210 800 16,602 15,756 417 429 25,139 24,597 542 758 705 53 Aug.r. 44,008 1,010 210 800 16,622 15,776 417 429 25,533 24,971 562 843 798 45 Sept.r. 44,216 587 187 400 17,778 16,932 417 429 25,088 24,521 567 763 717 46 Oct.r. 44,261 587 187 400 18,131 17,376 326 429 24,730 24,165 565 813 768 45 Nov.r. 44,488 579 179 400 19,965 19,210 326 429 23,159 22,573 586 785 738 47 Dec.r. 43,277 566 166 400 20,066 19,293 344 429 21,803 21,164 639 842 817 25 1971—Jan. 43,785 559 159 400 20,500 19,727 344 429 21,675 20,989 686 1,051 1,027 24 Feb.. 44,110 559 159 400 22,287 21,509 349 429 20,288 19,604 684 976 935 41 Mar.® 45,529 559 159 400 24,832 24,054 349 429 19,028 18,355 673 1,110 970 140 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 * 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
JUNE 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 c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n 1 Canada A re m L pu a e b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 15,646 9,872 996 1,131 3,145 249 253 / 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 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 19,965 13,254 637 1,646 3,639 449 340 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 Feb............................................................................... 22,287 15,382 727 1,341 4,169 325 343 Mar.?........................................................................... 24,832 17,149 801 1,218 5,004 242 418 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 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 organizations 5 Payable in dollars IMF Deposits 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 f r o a e c y n r i u e n a c r i b i g e l n s e i m n g v o e e l n s d t t 4 Total Demand Time2 b T i c r l c e U l e s a r a t . t S s i e a f u s . i n r d y s l O t i h e a t r o 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 19696r /40,040 39,611 20,430 6,834 5,015 7,332 429 800 609 57 83 244 224 \40,164 39,735 20,436 6,967 5,015 7,317 429 800 613 62 83 244 223 1970—Apr.r................ 41,804 41,442 18,724 7,031 7,164 8,523 362 800 714 92 128 237 258 Mayr................ 41,650 41,299 18,139 7,287 7,564 8,309 351 800 652 70 132 226 224 Juner................ 41,756 41,418 18,091 7,278 8,159 7,890 338 800 629 83 119 194 232 Julyr.................. 41,858 41,514 17,220 7,187 9,103 8,004 344 800 705 73 131 218 284 Aug.r................ 42,345 42,008 17,432 7,249 9,845 7,482 337 800 798 66 137 252 343 Sept.r............... 42,570 42,213 17,234 7,248 10,856 6,875 357 400 717 73 135 179 330 Oct.r................. 42,709 42,359 17,041 7,082 11,665 6,571 350 400 768 68 144 188 368 Nov.r............... 42,921 42,578 15,833 6,725 13,651 6,369 343 400 738 68 137 148 385 Dec.r................ 41,674 41,306 15,793 5,897 14,110 5,506 368 400 817 69 156 211 381 1971—Jan.r.................. 42,143 41,765 14,751 5,694 14,440 6,880 378 400 1,027 115 151 273 488 Feb..................... 42,448 42,038 13,455 5,486 16,361 6,736 410 400 935 64 145 279 447 Mar.P............... 43,779 43,127 11,803 5,165 18,664 7,495 652 400 970 73 164 242 491 Apr.P................ 45,951 45,314 10,407 4,959 22,298 7,650 637 400 1,100 63 194 206 637 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. □ JUNE 1971 8. SHORTTERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE— Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions 7 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d p osi T ts ime2 T b c i r l c e U e l a r s a . t t s S i e a f u . s n i r d y s O l t i h e a t o r h b m r . e 3 t r f r o e c n r i u e c n i r i g e n s Total Dema D n e d posi T ts ime2 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 t l h e i t a o r h m b r e t . r 3 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 196 8 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 , , 6 7 3 5 1 1 2 2 0 0. . 3 3 7 7 3 2 6 6 , , 7 8 5 8 1 4 3 3 . . 9 9 7 7 1 1 7 7 , , 1 0 0 9 9 4 4 4 2 2 9 9 1 1 1 1 . , 0 0 5 56 4 1 1 . .9 91 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 0 2 2 1970— Apr. 40,290 18,632 6,902 6,127 8,266 362 13,605 1,300 3,372 6,035 2,750 148 May r 40,198 18,069 7,155 6,538 8,085 351 13,986 1,340 3,426 6,417 2,655 148 June r 40,327 18,008 7,158 7,166 7,657 338 14,480 1,421 3,475 7,020 2,416 148 July 40,353 17,147 7,056 8,086 7,720 344 15,756 1,576 3.502 7,946 2,584 148 Aug.r. 40,747 17,366 7.112 8,793 7,138 337 15,776 1,249 3,612 8,653 2,114 148 Sept.r, 41,453 17,161 7.113 10,277 6,545 357 16,932 1,369 3.440 10,141 1,834 148 Oct.r. 41,541 16,972 6,938 11,077 6,204 350 17,376 1,444 3,178 10,919 1,687 148 Nov.r, 41,783 15,764 6,588 13,103 5,984 343 19,210 1,367 2,851 12,967 1,877 148 Dec.r. 40,457 15,724 5,741 13,498 5,126 368 19,293 1,629 2,568 13,354 1,594 148 1971—Jan.r. 40,716 14,635 5,543 13,768 6,393 378 19,727 1,729 2.503 13,609 1,738 148 Feb.. . 41,113 13,391 5,341 15,682 6,289 410 21,509 1,646 2.440 15,507 1,766 150 Mar.p, 42,409 11,730 5,000 18,022 7,004 652 24.054 1,560 2,247 17,869 1,978 400 Apr.P, 44,451 10,344 4,765 21,693 7,012 637 26,515 1,612 2,215 20,119 2,169 400 To banks* To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a s r a . t t s S e i a u f s . n i r d y s O l t h i e a t o r h b m r e . t r 3 Total Dema D n e d posi T ts ime2 T b c i r l c U e e l a s r a . t t s S e i a f u s . n i r d y s O l t i h e a t o r h b m r e . t 3 r 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 1969 6 r.................. 1 J 2 2 7 7 , , 5 69 7 5 7 2 2 3 3 , , 4 4 1 0 2 7 1 1 6 6 , , 7 7 4 4 5 4 1 1 , , 9 9 8 9 8 9 2 20 0 4 4, ,6 65 4 8 4 4 3 , , 0 93 6 9 2 1 1, , 7 7 0 1 9 0 1 1 , , 8 9 1 3 1 4 1 10 07 7 3 31 12 2 2 22 2 6 6 1970—Apr.r.......... 26,685 22,499 15,547 1,790 19 5,143 3,972 1,785 1,740 74 373 214 May r......... 26,212 22,025 15,020 1,951 20 5,035 3,985 1,710 1,779 102 395 202 June r......... 25,847 21,564 14,817 1,859 26 4,862 4,093 1,770 1,824 120 380 190 July '.......... 24,597 20,434 13,909 1,742 24 4,759 3,967 1,662 1,812 116 377 196 Aug.r.......... 24,971 20,839 14,432 1,735 23 4,648 3,943 1,685 1,764 116 376 189 Sept.r......... 24,521 20,400 14,139 1,903 23 4,335 3,913 1,653 1,770 114 376 208 Oct.r.......... 24,165 20,055 13,921 1,964 32 4,139 3,908 1,607 1,796 127 378 202 Nov.r......... 22,573 18,428 12,747 1,917 21 3,743 3,950 1,651 1,820 115 364 195 Dec.r.......... 21,164 16,906 12,360 1,335 14 3,197 4,038 1,734 1,839 131 334 220 1971—Jan.r........... 20,989 16,711 11,218 1,194 29 4,271 4,048 1,689 1,845 130 385 230 Feb............. 19,604 15,232 10,021 1,025 26 4,161 4,112 1,724 1,877 148 362 260 Mar.p......... 18,355 14,029 8,447 889 24 4,669 4,073 1,724 1,865 129 356 253 Apr.P.......... 17,936 13,565 6,931 661 1,458 4,516 4,133 1,801 1,890 116 326 238 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
JUNE 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. Julyr Aug.r Sept.r Oct.r Nov.r Dec.r Jan.r Feb. Mar.* Apr.* Europe: Austria...................................................... 314 274 287 273 263 236 185 204 198 194 191 Belgium-Luxembourg.............................. 530 582 581 614 742 709 596 760 766 769 779 153 189 189 195 193 187 189 196 216 220 219 Finland..................................................... 120 134 140 137 134 139 117 117 112 114 115 1,581 2,030 2,282 2,286 2,311 2,417 2,267 2,354 2,263 2,344 2,297 Germany.................................................. 1,381 4,241 4,505 5,439 5,977 7,543 7,520 7,795 8,518 9,568 10,316 207 198 199 204 212 198 184 162 176 140 145 Italy......................................................... 627 902 839 909 1,104 1,162 1,317 1,579 1,629 1,766 1,903 Netherlands.............................................. 463 469 631 626 800 748 762 584 654 744 620 Norway..................................................... 341 272 309 287 315 291 324 317 313 364 403 Portugal.................................................... 309 272 272 275 251 250 274 299 307 319 298 202 325 416 391 299 234 198 205 203 184 201 412 429 431 389 378 449 503 519 541 577 631 Switzerland............................................... 2,005 2,192 2,032 2,015 1,985 1,914 1,947 1,936 2,011 2,021 2,144 Turkey...................................................... 28 27 28 34 34 37 46 53 51 32 25 United Kingdom..................................... 11,349 8,339 8,600 9,113 7,865 6,659 5,508 5,637 5,210 4,778 5,086 Yugoslavia................................................ 37 35 27 33 31 49 37 36 46 41 33 Other Western Europe1.......................... 1,553 1,563 1,154 850 747 828 594 460 377 368 339 U.S.S.R..................................................... 11 8 7 3 13 13 15 11 9 12 22 Other Eastern Europe............................. 50 53 41 46 43 48 54 63 56 53 45 Total.................................................. 21,674 22,534 22,971 24,118 23,694 24,112 22,637 23,284 23,656 24,608 25,812 Canada.......................................................... 4,012 3,646 3,827 3,787 4,529 4,213 4,016 3,663 3,624 3,399 3,254 Latin America: Argentina.................................................. 416 588 581 533 605 560 539 508 517 522 506 Brazil........................................................ 425 544 427 398 415 353 305 344 326 291 301 Chile.......................................................... 400 444 429 325 359 327 265 256 252 258 259 Colombia.................................................. 261 275 294 282 258 244 247 231 215 186 191 7 6 7 7 6 7 7 7 8 8 7 Mexico...................................................... 849 896 915 846 814 876 820 828 829 824 859 Panama.................................................... 140 165 166 172 169 173 158 163 177 173 185 Peru.......................................................... 240 210 208 221 213 213 225 186 178 168 181 Uruguay.................................................... 111 113 108 107 104 108 117 125 125 119 120 Venezuela.................................................. 691 637 651 630 643 652 735 672 695 645 687 Other Latin American republics............. 576 653 638 633 619 604 620 617 614 609 601 Bahamas and Bermuda........................... 1,405 1,306 1,189 1,015 761 806 745 798 675 631 957 Netherlands Antilles and Surinam......... 80 84 88 95 91 96 98 92 95 101 105 Other Latin America............................... 34 42 37 33 37 42 39 37 38 49 48 Total.................................................. 5,636 5,963 5,736 5,295 5,095 5,060 4,918 4,866 4,743 4,582 5,009 Asia: China Mainland....................................... 36 41 41 41 38 35 33 36 36 34 34 Hong Kong.............................................. 213 226 245 235 250 274 258 305 322 295 281 India.......................................................... 260 363 356 366 401 426 302 236 229 188 211 Indonesia.................................................. 86 59 61 53 50 85 73 60 65 52 73 Israel......................................................... 146 131 115 121 118 107 135 121 128 122 154 Japan........................................................ 3,809 3,942 3,996 4,149 4,274 4,557 5,147 5,166 5,452 6,325 6,815 Korea........................................................ 236 307 280 263 195 185 199 193 178 191 184 Philippines................................................ 201 264 275 242 282 279 297 294 309 341 356 Taiwan...................................................... 196 260 212 228 247 260 275 292 278 288 296 Thailand.................................................... 628 603 591 585 549 511 508 489 469 443 381 Other........................................................ 606 746 780 769 728 680 708 722 735 674 601 Total.................................................. 6,417 6,942 6,952 7,053 7,134 7,401 7,936 7,913 8,201 8,951 9,384 Africa: Congo (Kinshasa).................................... 87 50 30 18 17 17 14 16 13 17 19 Morocco.................................................... 21 33 21 14 14 10 11 7 7 8 9 South Africa............................................. 66 47 49 47 53 55 83 71 71 56 74 U.A.R. (Egypt)......................................... 23 24 19 19 19 20 17 16 18 15 15 Other......................................................... 505 663 684 677 566 471 395 469 334 278 268 Total.................................................. 701 816 802 776 668 573 521 580 443 373 384 Other countries: Australia................................................... 282 418 428 389 390 392 389 376 398 453 567 All other................................................... 29 33 31 34 31 33 39 34 46 43 41 Total.................................................. 311 451 459 423 421 425 428 410 444 495 608 Total foreign countries............................... 38,751 40,353 40,747 41,453 41,541 41,783 40,457 40,716 41,113 42,409 44,451 International and regional: International2........................................... 1,261 1,250 1,330 848 881 873 975 1,175 1,086 1,099 1,210 Latin American regional......................... 100 143 150 145 175 152 131 162 156 . 165 158 Other regional8........................................ 52 112 118 124 112 113 111 90 93 106 132 Total.................................................. 1,413 1,505 1,598 1,117 1,168 1,138 1,217 1,427 1,335 1,370 1,500 Grand total....................................... 40,164 41,858 42,345 42,570 42,709 42,921 41,674 42,143 42,448 43,779 45,951 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. □ JUNE 1971 9. SHORTTERM 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...................................... 8 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 i06 E El c u S a a d lv o a r d .. o ... r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 82 6 6 8 2 9 7 69 6 7 7 9 2 7 7 5 9 S Sy in r g ia a . p ... o .. r . e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 2 7 4 4 0 1 4 7 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 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 t d i n . al Total O in t f i s f o t i n i c t i s u a l Banks1 fo O r e t e r h i s g e n r A t r i g n e a n A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h t l e l ri r es 1967.............................. 2,560 698 1,863 1,807 15 40 251 234 126 443 218 502 89 1968.............................. 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969.............................. 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 1970—Apr.r................. 2,273 844 1,429 1,318 64 46 25 210 6 636 49 376 127 Mayr................. 2,211 856 1,355 1,241 64 50 25 217 6 619 28 328 132 Juner................ 2,127 847 1,280 1,116 116 48 25 216 6 576 28 242 187 Julyr ................ 2,033 826 1,208 1,036 118 54 25 198 7 523 28 237 191 Aug.r................ 1,936 838 1,097 928 118 51 25 145 7 499 22 204 194 Sept.r................ 1,916 862 1,054 883 119 53 25 147 7 477 11 190 197 Oct.r................. 1,835 844 991 820 119 52 25 147 7 466 9 140 196 Nov.r................ 1,733 814 919 749 118 52 13 143 7 416 8 138 193 Dec.r................. 1,696 787 909 695 160 54 13 138 6 385 8 122 236 1971—Jan.r................. 1,569 717 852 635 157 60 13 144 6 340 8 107 233 Feb.................... 1,462 691 771 568 153 51 13 106 6 316 1 100 229 Mar.p............... 1,331 631 700 479 161 60 13 88 6 261 1 94 236 Apr.p................. 1,205 602 604 404 142 57 13 90 7 186 1 86 220 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 o 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. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.® Apr.® Europe: Denmark....................... 9 6 6 6 6 6 6 5 5 3 3 3 3 3 France........................... 6 6 6 6 6 6 6 6 6 6 6 7 7 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 45 45 44 47 49 49 49 49 48 49 48 45 United Kingdom.......... 407 359 369 396 401 411 423 424 447 499 546 544 537 545 Other Western Europe. 24 24 24 24 24 24 24 24 24 24 25 30 30 30 Eastern Europe............ 7 7 7 7 7 7 7 7 6 6 6 6 6 6 Total. 538 492 501 529 532 545 560 559 582 632 679 683 675 680 Canada... 272 271 279 286 287 294 284 191 190 192 192 191 188 188 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 3 4 4 5 4 4 4 4 4 4 Total. 15 15 15 15 16 17 17 18 18 18 18 18 17 17 Asia: Japan......... 61 62 61 61 61 61 61 61 61 61 61 61 61 61 Other Asia. 18 18 19 19 19 19 19 19 18 38 38 38 38 38 Total................. 79 80 81 81 81 81 80 80 80 99 99 99 99 99 Other countries............ 7 7 7 22 42 42 42 42 42 42 42 42 42 42 Total foreign countries. 912 865 883 933 959 979 984 891 912 983 1,030 1,033 1,022 1,027 International and regional: International..................... 32 30 30 30 30 22 22 22 22 * * 16 114 114 Latin American regional.. 18 20 21 21 22 23 23 23 24 24 25 25 26 26 Asian regional................... Total............ 50 51 51 52 53 45 45 46 46 24 25 41 140 140 Grand total. 962 916 934 985 1,012 1,024 1,030 936 959 1,008 1,054 1,074 1,162 1,167 Note.—Data represent estimated official and private holdings of mar- year, and are based on a Nov. 30,1968, benchmark survey of holdings and ketable U.S. Govt, securities with an original maturity of more than 1 regular monthly reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total g B iu e m l C ad a a n 1 m De ar n k Italy2 Korea S d w en e T w a a i n T la h n a d i Total A tr u ia s g B iu e m l 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 + 3,181 1,431 32 1,129 135 15 20 100 4 1,750 *1,084 125 541 1970—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 Apr. 3.563 2.480 32 2.289 25 15 20 100 1.083 542 541 May 53,592 2.480 32 2.289 25 15 20 100 51,111 542 5569 1 Includes bonds issued in 1964 to the Government of Canada in connec June 1968. The revaluation of the German mark in Oct. 1969 increased tion with transactions under the Columbia River treaty. Amounts out the dollar value of these notes by $10 million. standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through 4 Includes an increase in dollar value of $84 million resulting from Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and revaluation of the German mark in Oct. 1969. Oct. 1970 through latest date, $24 million. 5 Increase in valuation resulted from redemption of outstanding Swiss 2 Bonds issued to the Government of Italy in connection with mili franc securities at old exchange rate and reissue of securities at new ex tary purchases in the United States. change rate with same maturity dates, at time of revaluation of Swiss 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 franc. The new issues include some certificates of indebtedness issued to million equivalent were issued to a group of German commercial banks in replace notes which were within a year of maturity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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. July Aug.r Sept.r Oct.r Nov.r Dec.r Jan.r Feb. Mar.p Apr.P Europe: Austria...................................................... 7 13 7 4 5 8 6 4 4 5 17 Belgium-Luxembourg............................. 56 53 52 70 68 71 50 69 68 68 57 Denmark.................................................. 40 28 36 34 36 37 40 46 53 58 54 Finland..................................................... 68 65 63 63 56 55 66 103 110 123 128 France...................................................... 107 83 75 104 78 105 113 95 111 98 102 Germany.................................................. 205 125 169 181 182 184 184 142 171 190 211 Greece...................................................... 22 25 27 28 27 25 26 21 22 21 22 Italy.......................................................... 120 87 90 102 106 92 101 92 98 102 107 Netherlands.............................................. 51 49 46 67 52 57 61 74 68 70 76 Norway..................................................... 34 31 30 33 40 48 54 61 65 62 54 Portugal.................................................... 8 12 8 10 16 13 11 12 14 15 15 Spain......................................................... 70 52 51 59 58 54 52 49 56 59 65 Sweden...................................................... 67 113 103 112 123 110 97 102 100 104 124 Switzerland.............................................. 99 109 123 100 115 98 100 121 114 174 130 Turkey...................................................... 19 17 10 6 4 4 9 3 4 5 8 United Kingdom..................................... 408 403 340 386 378 430 379 410 513 456 579 Yugoslavia................................................ 28 32 33 36 42 41 35 35 31 33 33 Other Western Europe............................. 9 7 6 7 8 12 13 10 11 9 12 U.S.S.R..................................................... 2 1 2 3 3 1 3 2 2 3 3 Other Eastern Europe............................. 34 45 43 40 43 41 45 36 41 47 51 Total.................................................. 1,454 1,350 1,315 1,446 1,437 1,487 1,448 1,487 1,657 1,701 1,846 Canada......................................................... 826 730 751 806 897 917 1,084 914 941 1,018 972 Latin America: Argentina.................................................. 309 306 297 306 303 306 324 326 337 346 317 Brazil........................................................ 317 299 296 316 323 322 322 309 320 360 387 Chile.......................................................... 188 210 210 205 199 189 199 186 184 179 165 Colombia.................................................. 225 250 256 265 267 272 284 288 296 300 303 Cuba......................................................... 14 14 14 14 14 13 13 13 13 13 13 Mexico...................................................... 803 901 889 900 906 934 904 912 951 908 892 Panama..................................................... 68 68 68 83 94 84 95 82 105 100 105 Peru.......................................................... 161 156 142 132 136 141 147 143 135 131 150 Uruguay.................................................... 48 57 53 57 54 55 63 56 51 49 53 Venezuela.................................................. 240 248 251 267 284 284 281 276 275 243 242 Other Latin American republics............. 295 295 294 285 298 321 340 334 336 326 328 Bahamas and Bermuda........................... 93 56 64 78 133 105 179 178 157 200 190 Netherlands Antilles and Surinam......... 14 16 17 18 14 14 19 19 14 15 21 Other Latin America............................... 27 23 20 22 20 22 22 22 21 22 22 Total.................................................. 2,802 2,900 2,871 2,947 3,045 3,062 3,191 3,145 3,193 3,193 3,187 Asia: China Mainland....................................... 1 1 1 1 2 1 2 1 1 2 1 Hong Kong.............................................. 36 41 35 46 36 36 39 40 41 49 60 India.......................................................... 10 12 11 10 12 12 13 16 13 15 24 Indonesia.................................................. 30 36 42 46 41 54 56 49 49 66 45 Israel......................................................... 108 90 80 82 105 110 120 99 130 97 110 3,432 3,484 3,387 3,331 3,370 3,538 3,890 3,675 3,480 3,482 3,356 Korea........................................................ 158 222 228 227 218 197 196 196 194 221 243 Philippines................................................ 215 269 209 215 134 129 137 135 137 124 128 Taiwan...................................................... 49 82 81 81 82 82 95 101 113 119 117 Thailand................................................... 101 96 106 108 100 97 109 106 109 109 118 Other........................................................ 212 180 165 157 160 164 157 167 182 183 187 Total.................................................. 4,352 4,511 4,345 4,304 4,262 4,420 4,815 4,585 4,448 4,466 4,389 Africa: Congo (Kinshasa).................................... 6 5 4 6 4 5 4 7 4 6 5 Morocco................................................... 3 4 6 5 6 4 6 6 6 6 5 South Africa............................................ 55 69 68 72 72 76 77 83 84 86 93 U.A.R. (Egypt)........................................ 11 15 14 13 12 10 13 16 14 14 17 Other........................................................ 86 65 65 63 63 72 79 78 85 101 103 Total.................................................. 162 157 157 159 157 166 180 190 194 213 223 Other countries: Australia................................................... 53 63 66 60 59 59 64 70 105 73 73 All other................................................... 16 15 16 17 15 16 16 17 19 18 18 Total.................................................. 69 78 82 77 75 75 80 87 124 91 91 Total foreign countries............................... 9,664 9,726 9,520 9,739 9,872 10,127 10,798 10,408 10,557 10,681 10,709 International and regional.......................... 2 1 2 2 1 2 3 2 2 2 2 Grand total....................................... 9,667 9,727 9,521 9,741 9,873 10,129 10,801 10,410 10,559 10,683 10,711 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
JUNE 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 Loans to— Foreign End of period Total C t o io ll n e s c A a m c n c a c e d e p e s t Deposits g c o ur v i t t , i e s s e , Total Total O in t f i s o f t i i n c t i s u a l Banks1 Others st o i a n u n g t d f e o o i r f g a n fo c e c r rs t. Other Total w e i i t g h n e f r o s r a n p c n o a a d n m p c e f l e i r . Other 1968.............................. 8,711 8,261 3,165 247 1,697 1,221 1,733 2,854 509 450 336 40 73 1 0^02 (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—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.r................ 9,521 9,058 2,975 178 1,711 1,087 2,354 3,171 557 463 354 50 59 Sept.r................ 9,741 9,261 3,231 186 1,936 1,109 2,381 3,056 593 479 366 40 74 Oct.r................. 9,873 9,358 3,129 109 1,897 1,123 2,438 3,158 634 515 366 67 83 Nov.r............... 10,129 9,574 3,132 95 1,894 1,143 2,429 3,330 683 555 354 112 89 Decr.................. 10,801 10,150 3,038 119 1,709 1,210 2,414 3,966 732 651 393 92 166 1971—Jan.r................. 10,410 9,903 2,850 110 1,561 1,178 2,396 3,950 708 506 308 79 120 Feb.................... 10,559 10,024 2,937 88 1,578 1,270 2,389 3,972 726 535 334 111 90 Mar.*................ 10,683 10,119 2,996 100 1,589 1,307 2,376 4,026 721 564 365 102 96 Apr.*................ 10,711 10,177 3,088 107 1,726 1,255 2,320 4,086 683 534 338 92 104 1 Excludes central banks which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e r P c fo a u r y r i e r a n i e b g n l n e U K d n i o n i m t g ed E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u 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—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 Juner... 3,177 2,788 499 209 2,080 362 27 67 425 416 1,341 92 517 319 July'... 3,127 2,745 486 215 2,044 354 29 69 396 417 1,337 100 502 307 Aug.r... 3,131 2,719 470 225 2,023 383 29 64 398 411 1,324 106 515 312 Sept.r... 3,155 2,750 460 244 2,046 377 28 65 395 416 1,357 108 499 314 Oct.r. .. 3,229 2,839 531 256 2,053 359 30 67 407 409 1,342 109 582 312 Nov.r... 3,216 2,825 515 247 2,064 364 26 66 387 398 1,362 113 583 307 Dec.r... 3,067 2,691 504 230 1,957 352 25 71 411 312 1,318 115 548 292 1971—Jan........ 2,953 2,601 485 208 1,909 327 24 70 412 278 1,272 117 523 280 Feb....... 2,948 2,634 484 208 1,942 289 26 77 420 266 1,248 121 521 295 Mar.*. . 3,032 2,725 498 221 2,006 277 30 111 423 268 1,259 125 548 298 Apr.*... 3,072 2,762 506 218 2,037 277 30 117 440 275 1,262 119 553 305 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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 i 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 h s a e a s t l e e p s s u o r r ch P a u s r e s Sales c N h s a e a s t l e 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 1969............................. -4 11 -15 -79 64 15,476 12,795 2,681 1,552 2,578 -1,026 1,519 2,037 -517 1970r........................... 46 -25 71 -39 110 11,426 9,844 1,582 1,490 2,422 -932 1,033 995 38 1971—Jan.-Apr.P___ 159 115 44 5 38 5,552 5,156 396 592 967 -375 359 504 -145 1970—Apr.r............... 10 1 9 9 1,010 848 161 143 186 -42 80 104 -24 May................. 18 1 18 2 16 769 929 -160 116 70 47 109 90 18 June................. 51 * 50 15 35 858 783 76 113 97 16 74 60 15 July.................. 27 1 26 20 6 783 649 134 126 263 -136 62 58 4 Aug.................. 13 -8 21 * 21 656 514 142 143 380 -237 60 45 15 Sept.r.............. 5 * 5 5 1,034 703 331 110 93 17 76 90 -14 Oct.r............... -93 * -94 -91 -3 1,187 938 249 109 256 -147 71 120 -50 Nov.................. 23 1 22 * 22 754 609 145 97 87 10 65 76 -11 Dec................... 49 -22 71 18 53 1,321 1,030 291 140 263 -123 83 86 -3 1971—Jan .................. 46 -1 47 47 1,242 1,022 220 116 425 -308 90 95 -5 Feb................... 20 17 3 5 -2 1,516 1,411 105 126 107 19 68 108 -41 Mar.®.............. 88 99 -11 -11 1,411 1,315 97 176 196 -20 85 121 -36 Apr.®............... 5 * 5 * 4 1,383 1,408 -25 174 241 -67 117 179 -63 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 tr e i 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 36 1970r................... 626 58 195 128 110 -33 24 482 -9 47 85 -1 1 22 1971-Jan .-Apr.P. 71 -54 57 33 -9 -45 50 31 -29 32 16 * -1 22 1970—Apr.'....... 5 -8 20 -23 12 -15 5 -10 25 -16 6 * * 1 Mayr........ -200 1 -2 33 -46 -102 -32 -149 -30 -25 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 N O o ct v .. . . . . . . . . . . . . . . . . . . . 1 9 5 8 8 -3 7 2 1 3 3 1 1 8 3 - 1 1 1 32 3 2 3 1 1 8 8 5 4 31 6 30 1 13 * — * 1 * * -1 7 Dec........... 216 39 27 8 39 14 11 137 40 32 4 * * 3 1971—Jan............ 130 -13 27 14 26 7 46 107 11 6 -3 * 11 Feb........... -32 -23 28 9 -6 -23 21 4 -34 -5 * * * * Mar.p.... -26 -26 11 2 -26 -11 -9 -59 1 18 9 * * 6 Apr.P....... -1 8 -10 8 -4 -18 -9 -24 -7 14 11 * 1 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 10 336 1970'................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971—Jan.-Apr.^ 325 18 7 2 70 63 49 209 34 8 -1 * -12 89 1970—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*”........ 82 4 -2 -1 23 36 8 68 6 6 1 * -1 1 Aug.......... 38 -1 -3 * -1 -1 1 -4 21 2 * * -2 21 Sept.r. ... 106 1 25 * 3 -1 2 31 16 -6 1 * * 64 Oct.r........ 91 -1 * 1 8 -8 43 43 14 1 6 * -2 29 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 21 39 85 -4 1 1 * -12 65 Mar.?.... 123 10 14 -1 32 32 5 92 11 6 3 * * 11 Apr.**........ -23 3 -3 * 7 7 5 19 -2 4 -6 * * -39 Note.—Statistics include State and local govt, securities, and securities the United States. Also includes issues of new debt securities sold abroad 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 p e C a a d n a A L i a m c t a i e n r Asia r A ic f a c O 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 1967...................................... 311 298 1969.......................... -1,544 66-1,610 74-1,128 -98 -471 -6 20 1968....................................... 636 508 1970r........................ -894 -254 -641 50 -569 -11 -125 -6 20 1969—Mar........................... 553 393 1971—Jan.-Apr.p... -520 -236 -284 -47 -59 -2 -181 -1 6 June........................... 566 397 Sept........................... 467 297 1970—Apr................ -66 9 -75 17 -82 -2 -9 1 Dec............................ 434 278 May.............. 65 11 54 -1 42 3 8 2 30 5 25 1 39 — 1 -15 1 1970—Mar........................... 368 220 July.............. -132 -38 -94 9 -78 -23 -1 * June........................... 334 182 Aug............... -222 -158 -64 4 -127 56 2 1 Sept........................... 291 203 Sept............... 3 16 -13 5 22 -30 -12 2 Dec............................ 349 279 Oct................ -197 -91 -106 -33 -51 3 -27 2 Nov............... -1 3 —4 -10 15 -2 -9 -1 1 1971— Mar. p........................ 511 314 Dec............... -125 4 -129 -22 -74 -5 -31 -1 4 1971— F Ja e n b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3 -2 1 1 3 -1 - 9 4 7 -1 -1 1 7 7 -21 2 -8 2 2 7 -10 4 - -2 29 9 * * 2 1 mo N n o ey t e d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in g m o on n e t y h e c r b e o d o i k t s b o al f a r n e c p e o s r t a in nd g Mar.*7............ -56 11 -67 6 -34 6 -44 -1 1 brokers and dealers in the United States, in accounts of Apr.?............ -129 -46 -83 -34 29 -2 -79 * 1 foreieners with them, and in their accounts carried bv foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 1971 21. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 22. MATURITY OF EURO DOLLAR AND FOREIGN BRANCH HOLDINGS OF SPECIAL U.S. DEPOSITS IN FOREIGN GOVT. 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 1971 Maturity of liability 1966 1970 1971 ' Jan. Feb. Mar. Mar. 30................. 1,879 Jan. 28................ 13,605 Jan. 6.....................7,424 June 29................. 1,951 Feb. 25................ 13,086 1 3 .....7,863 1.51 1.67 1.62 S D e e p c t . . 2 2 8 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 3 , , 0 4 3 7 6 2 A M p a r r . . 2 2 9 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 , , 9 8 4 8 4 5 2 2 0 7 . . . . . . . . . . 7 7 , , 8 5 2 3 3 6 O C t a h l e l. r . . l . i . a .. b .. i . l .. i . t . i . e .. s . , . . m ... a .. t . u ... r . i . n .. g .. 1.77 2.02 1.96 May 27................ 12,346 in following calendar June 24................ 12,172 months after report 1967 July 29............... 10,469 Feb. 3....................7,432 date : Aug. 26................ 10,629 10.....................7,233 8.85 9.13 10.03 J M un ar e . 2 29 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 , , 4 1 1 66 2 Sept. 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 0 0 , , 2 33 2 2 0 2 1 4 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 , , 8 66 72 6 2 3 n rd d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 . . 9 0 1 0 4 2 . .9 93 5 3 3. . 5 7 2 0 Sept. 27................. 4,059 16................ 10,525 1.51 1.84 2.08 M De a c r . . 2 2 7 7 . . . . . . . . . . . . . . . . . . 1 . . . 9 . . . 6 . . . . 8 . . . . . . 4 4 , , 9 2 2 4 0 1 Oct. 2 2 3 1 7 1 3 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 9 9 9 0 , , , , , 5 8 6 5 1 8 3 6 9 2 0 9 3 5 6 Mar. 2 3 1 1 3 1 4 0 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4 6 5 5 ,5 , , , , 3 8 3 6 1 3 5 0 8 6 8 6 8 0 1 5 9 6 0 t t t t h h h h. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 1 1 . . . . . . 5 2 2 1 4 2 9 3 8 8 3 0 1 1 . . . . . . 2 2 2 7 4 2 1 8 8 9 2 5 1 1 . . . . . . 3 3 2 2 3 5 3 7 0 2 2 0 June 26.................. 6,202 28................ 9,297 11th.........;................... .24 .17 .20 S D e e p c t . . 3 2 1 5 ( .. 1 .. / . 1 ... / . 6 .. 9 .. ) .. . . . . . 7 6 , , 1 0 0 3 4 9 Nov. 1 1 4 1 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 8 8 , , , 0 8 7 2 9 6 4 6 2 Apr. 2 1 7 . 4 . 1 .. ............ . . . . . . . . . . . . . . 4 5 5 , , , 7 3 2 5 1 5 9 8 2 Maturities of more than 1 . . 5 1 4 4 . . 1 5 7 7 . .2 7 6 0 1969 25................ 8,435 2 8 .....5,166 Dec. 2................ 8,252 27.39 27.66 28.01 Mar. 26................. 9,621 9................ 8,215 May 5....................5,012 June 25.................. 13,269 16............... 8,305 12....................4,606 Sept. 24.................. 14,349 23................ 7,902 19....................4,636 Note.—Includes interest-bearing U.S. dollar Dec. 31.................. 12,805 30................ 7,676 26.....................4,587 deposits and direct borrowings of all branches in the Bahamas and of all other foreign branches for which such deposits and direct borrowings cou N n o tr t i e e . s — a T n h d e s p d e a c t i a a l r e U p . r S e . s e G n o t v g t, r o s s e s c u li r a it b ie il s i t h ie e s l d o b f y r e f p o o re rt i i g n n g b b ra a n n c k h s e t s o a t s h f e o i l r l o b w ra s n : c E h x e p s o i r n t - f I o m re p i o g r n t am D o e u t n a t i ls to m $ a 5 y 0 n m o i t l l a io d n d o to r t m o o ta r l e s . due to rounding bank securities, $1,000 million, Jan. 27, 1971—Feb. 24, 1971, and $1,500 million, Mar. 3, 1971, through latest date; and $1,508 million of Treasury Certificates Eurodollar Series beginning Apr. 14, 1971. 23. DEPOSITS, U.S. GOVT. SECURITIES, 24. SHORT-TERM LIQUID CLAIMS ON FOREIGNERS AND GOLD HELD AT F.R. BANKS FOR REPORTED BY NONBANKING CONCERNS FOREIGNERS (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Assets incustody Payable in dollars foreign currencies End of period Deposits End of United U.S. Govt. Earmarked period Total Short Short King Canada securities1 gold Deposits term Deposits term dom invest invest ments! 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-—May. . 128 9,754 12,239 1 G£Q 2 J1,319 952 116 174 76 610 469 June.. 168 10,888 12,240 11,454 1,025 161 183 86 663 519 July... 199 11,803 12,217 Aug... 173 12,489 12,283 1970—Apr......... 1,438 1,053 178 142 66 892 270 Sept... 136 13,983 12,611 May........ 1,459 1,011 200 138 109 837 331 Oct.... 142 14,458 12,617 June........ 1,476 1,041 174 148 112 754 359 Nov... 136 16,196 12,644 July........ 1,423 1,009 181 159 74 752 309 Dec... 148 16,226 12,926 Aug......... 1,276 868 164 151 94 662 297 Sept......... 1,375 889 183 177 126 668 382 1971-—Jan__ 129 16,206 12,958 Oct.r.... 1,418 905 177 177 159 641 440 Feb. .. 147 18,033 12,981 Nov. r. .. 1,436 924 171 175 166 628 472 Mar... 201 20,534 13,057 Dec.r---- 1,045 619 133 172 121 363 417 Apr... 162 22,879 13,095 May. . 208 28,126 13,447 1971—Jan. r.... 1,211 795 124 180 114 511 363 Feb.r.... 1,270 786 152 191 141 539 401 Mar........ 1,325 865 142 176 143 586 372 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 iti a e r s obl 2 i g D a a ti t o a n o n w t a h 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 o d r a e t i e g 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
JUNE 1971 □ 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.* Dec. Mar. June Sept. Dec.* Europe: Austria.................................. 4 3 4 6 8 5 7 8 9 10 Belgium-Luxembourg.......... 65 72 71 66 46 59 60 58 54 47 Denmark............................... 3 3 3 3 2 16 17 17 16 17 2 1 1 1 2 7 8 8 13 11 France................................. 137 127 156 141 127 122 155 176 154 150 Germany, Fed, Rep. of........ 218 193 164 166 139 219 172 174 192 209 Greece................................... 4 3 3 3 4 19 19 27 28 28 Italy....................................... 85 83 85 70 77 155 169 173 160 163 Netherlands........................... 90 110 116 121 126 64 72 72 62 62 Norway................................. 4 5 5 6 5 17 12 13 13 16 Portugal................................. 10 6 5 10 14 10 14 18 14 15 59 55 47 48 24 77 78 72 73 81 Sweden.................................. 38 29 31 35 34 32 27 27 25 40 Switzerland........................... 129 157 157 183 159 45 47 37 45 44 Turkey................................... 3 2 2 3 4 12 12 11 13 8 United Kingdom.................. 431 556 635 641 770 999 1,198 1,081 1,010 689 Yugoslavia............................ 1 2 1 1 2 18 19 15 17 17 Other Western Europe........ 21 19 21 21 11 12 11 12 9 8 Eastern Europe..................... 1 2 3 5 4 22 17 20 24 24 Total.............................. 1,304 1,428 1,509 1,532 1,556 1,909 2,111 2,020 1,932 1,639 Canada..................................... 226 204 204 213 213 819 635 683 696 762 Latin America Argentina.............................. 9 11 15 10 11 54 55 62 61 61 Brazil..................................... 18 13 14 17 19 86 97 100 107 120 Chile...................................... 10 8 9 11 11 41 42 37 42 49 Colombia.............................. 7 6 5 6 6 33 36 37 37 37 Cuba...................................... * * * * * 1 1 1 1 1 17 24 21 28 21 146 143 135 149 154 Panama................................. 4 8 5 5 5 19 19 19 18 18 Peru....................................... 12 10 6 6 4 30 34 37 29 36 Uruguay................................ 5 5 5 5 4 7 8 6 5 6 16 13 19 14 18 58 69 65 72 71 Other L.A. republics............ 43 27 28 35 37 90 92 102 97 99 Bahamas and Bermuda........ 31 46 57 89 144 66 84 159 139 121 Neth. Antilles and Surinam. 2 4 38 24 23 6 7 8 10 9 Other Latin America............ 4 5 6 5 6 17 25 19 23 29 Total.............................. 179 178 229 255 311 655 713 786 790 811 Asia: Hong Kong........................... 7 7 7 8 9 11 14 17 19 17 20 27 37 41 38 37 36 41 42 34 Indonesia............................... 5 5 7 7 9 12 11 17 14 21 Israel..................................... 14 15 17 21 25 36 34 23 21 23 Japan..................................... 143 132 114 135 144 255 297 311 314 322 Korea.................................... 2 1 2 1 1 28 27 50 29 42 Philippines............................ 9 6 7 7 7 40 32 33 32 30 Taiwan................................... 3 4 4 8 9 19 23 29 27 33 Thailand................................ 3 3 3 4 4 15 15 15 13 11 Other Asia............................. 27 26 28 47 48 119 113 125 145 146 233 227 227 282 294 574 602 662 657 678 Africa: Congo (Kinshasa)................ 2 3 14 15 2 4 4 5 4 3 14 19 19 24 34 30 28 35 29 30 U.A.R. (Egypt)..................... 7 1 2 2 1 9 9 10 11 9 Other Africa......................... 29 33 37 51 40 46 47 49 48 50 Total.............................. 52 56 72 90 78 88 87 99 92 92 Other countries: 61 65 70 75 75 61 65 85 71 81 All other............................... 7 6 6 5 7 10 13 14 15 15 Total.............................. 68 71 76 80 82 71 78 100 86 95 International and regional.... * * * * * * 1 2 1 1 Grand total................... 2,063 2,166 2,317 2,453 2,535 4,117 4,227 4,350 4,253 4,079 Note.—Reported by exporters, importers, and industrial and com- Data exclude claims held through U.S. banks, and intercompany accounts mercial concerns and other nonbanking institutions in the United States. between U.S. companies and their foreign affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ JUNE 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 P fo a r y i e n a i b g l n e Total P d a o y i l n a la b r l s e Deposits with currencies banks abroad in reporter’s Other name 1966—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...................... S 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.1.................. \ 2,063 1,627 435 4,117 3,494 244 379 1970—Mar...................... 2,166 1,687 479 4,227 3,695 219 313 June.................... 2,317 1,801 516 4,350 3,765 234 351 Sept...................... 2,453 1,928 525 4,253 3,653 297 303 Dec.*................... 2,535 2,114 421 4,079 3,507 231 342 i Data differ from that shown for Dec. in line above because of changes in reporting coverage. 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims Country or area End of period lia T b o il t i a ti l es Total K U in n g 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—Dec......................... 329 1,256 27 198 272 203 56 212 95 93 87 13 1967—Mar........................ 454 1,324 31 232 283 203 58 210 108 98 84 17 June....................... 430 1,488 27 257 303 214 88 290 110 98 85 15 Sept........................ 411 1,452 40 212 309 212 84 283 109 103 87 13 Dec........................ ( 414 1,537 43 257 311 212 85 278 128 117 89 16 Dec.1..................... \ 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—Mar........................ 582 1,536 41 265 330 206 61 256 128 145 84 21 June....................... 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept........................ 767 1,625 43 313 376 198 62 251 126 142 82 32 Dec......................... 1,129 1,790 147 306 419 194 73 230 128 171 83 38 1969—Mar........................ 1,285 1,872 175 342 432 194 75 222 126 191 72 43 June....................... 1,325 1,952 168 368 447 195 76 216 142 229 72 40 Sept........................ 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec......................... S *>725 2,215 152 433 496 172 73 388 141 249 69 42 Dec.1..................... X 2,246 2,332 152 443 537 174 77 417 142 269 75 46 1970—Mar........................ 2,307 2,714 159 735 549 178 74 455 158 286 71 47 June....................... 2,561 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 Dec.*7..................... 3,091 2,910 146 709 645 181 59 606 140 290 71 64 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
JUNE 1971 □ MONEY RATES A 89 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia Period Ar ( g p e e n so ti ) na (s A ch u i s ll t i r n ia g) B (f e r l a g n iu c m ) C (d a o n ll a a d r a ) ( C ru ey p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r l k an k d a) (pound) (dollar) 1966............................................................. .48690 223.41 1111.22 3.8686 2.0067 92.811 20.946 14.475 31.061 1967............................................................. .30545 111.25 3.8688 2.0125 92.689 20.501 14.325 229.553 1968............................................................. .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 1969............................................................. .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 1970............................................................. 3 26.589 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 1970—May.................................................. 28.500 111.73 3.8614 2.0140 93.195 16.770 13.324 23.748 27.241 111.45 3.8618 2.0142 4 96.273 16.770 13.334 23.748 July.................................................. 24.934 111.12 3.8670 2.0146 96.872 16.770 13.330 23.748 24.936 110.99 3.8638 2.0145 97.890 16.770 13.329 23.748 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 24.864 111.11 3.8676 2.0147 98.014 16.792 13.336 23.722 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 24.835 112.42 3.8670 2.0145 99.367 16.792 13.368 23.722 24.673 112.38 3.8696 2.0144 99.237 16.792 13.353 23.727 24.156 112.42 5 3.9676 2.0164 99.138 16.792 13.334 23.735 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 e a n n ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e s r) 1966............................................................. 20.352 25.007 <>16.596 279.30 .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............................................................. 719.302 825.491 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—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 Apr................................................... 18.126 27.516 13.315 241.74 .16070 .27972 32.604 8.0056 27.776 May.................................................. 18.094 928.144 13.330 241.87 .16059 .27979 32.642 8.0056 9 28.135 New Zealand South Switz United Period Norway Portugal Africa Spain Sweden erland King (pound) (dollar) (krone) (escudo) (rand) (peseta) (krona) (franc) (p d o o u m nd) 1966............................................................. 276.54 13.984 3.4825 139.13 1.6651 19.358 23.114 279.30 1967............................................................. 276.69 10131.97 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—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 Apr................................................... 112.50 14.028 3.5000 140.51 1.4291 19.368 23.263 241.79 May.................................................. 112.54 13.556 3.5013 140.56 1.4291 19.357 H24.253 241.87 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 7 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. 8 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. 9 Effective May 10, 1971, the German mark and Netherlands guilder 3 A new Argentine peso, equal to 100 old pesos, was introduced on have been floated. Jan. 1, 1970. Effective June 18, 1970, the peso was devalued from 3.50 to 10 Effective July 10,1967, New Zealand adopted the decimal currency 4.00 pesos per U.S. dollar. Effective Apr. 6, 1971, the peso was devalued system. The new unit, the dollar, replaces the pound and consists of 100 to 4.06 per U.S. dollar. Effective May 4, 1971, the peso was devalued to cents, equivalent to 10 shillings or one-half the former pound. 4.12 per U.S. dollar. 11 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per 4 On June 1, 1970, the Canadian Government announced that, for the U.S. dollar. time being, Canada will not maintain the exchange rate of the Canadian dollar within the margins required by IMF rules. Note.—After the devaluation of the pound sterling on Nov. 18, 1967, 5 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 the following countries devalued their currency in relation to the U.S. per U.S. dollar. dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. 6 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,” Digitized for FRASER Section 15 of Supplement to Banking and Monetary Statistics, 1962. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 90 MONEY RATES □ JUNE 1971 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of May 31, 1970 Rate Country 1970 1971 as of May 31, Per Month 1971 cent effective June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 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....... 7.5 May 1970 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 7.5 7.5 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 6.75 6.75 Germany, Fed. Rep. of.. 7.5 Mar. 1970 7.0 6.5 6.0 5.0 5.0 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. 6.0 May 1969 6.0 6.0 Iran......... 8.0 Aug. 1969 8.0 Ireland. .. 7.31 May 1970 7.31 Israel.... 6.0 Feb. 1955 6.0 Italy 5.5 Mar. 1970 5.0 5.0 Jamaica. 6.0 May 1969 5.5 5.5 Japan... 6.25 Sept. 1969 6.0 5.75 5.5 5.5 Korea... 24.0 Apr. 1970 23.0 23.0 Mexico.. 4.5 June 1942 4.5 Netherlands.., 6.0 Aug. 1969 5.5 5.5 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................... 3.5 Apr. 1970 3.75 3.75 South Africa............ 5.5 Aug. 1968 6.5 6.5 Spain........................ 6.5 Mar. 1970 6.25 6.0 6.0 Sweden..................... 7.0 July 1969 6.5 6.0 6.0 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................ 7.0 Apr. 1970 6.0 6.0 Venezuela............................ 5.5 June 1969 5.0 5.0 Vietnam............................... 7.0 Mar. 1970 18.0 18.0 Note.—Rates shown are mainly those at which the central bank either Ecuador—5 per cent for special advances and for bank acceptances for discounts or makes advances against eligible commercial paper and/or agricultural purposes, 7 per cent for bank acceptances for industrial govt, securities for commercial banks or brokers. For countries with purposes, and 10 per cent for advances to cover shortages in legal reserves; more than one rate applicable to such discounts or advances, the rate Honduras—Rate shown is for advances only. shown is the one at which it is understood the central bank transacts Indonesia—Various rates depending on type of paper, collateral, com the largest proportion of its credit operations. Other rates for some modity involved, etc.; of these countries follow: Japan—Penalty rates (exceeding the basic rate shown) for borrowings Argentina—3 and 5 per cent for certain rural and industrial paper, de from the central bank in excess of an individual bank’s quota; pending on type of transaction; Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc Brazil—8 per cent for secured paper and 4 per cent for certain agricultural tion, import substitution industries and manufacture of exports; 8 per paper; cent for other agricultural, industrial and mining paper; Chile—1 per cent for loans to consumer cooperatives and to handicraft Philippines—6 per cent for financing the production, importation, and dis and small- and medium-sized industries; 6 per cent for industrial trans tribution of rice and corn and 7.75 per cent for credits to enterprises en formation loans; 8 per cent for preshipment loans, agricultural paper gaged in export activities. Preferential rates are also granted on credits to and loans to firms following prescribed policies; 17 per cent for construc rural banks; and tion paper beyond a basic rediscount period, personal loans, special Venezuela—2 per cent for rediscounts of certain agriculture paper, 4 Vi rediscounts, and cash position loans; and 18 per cent for selective redis per cent for advances against government bonds, and 5 Vi per cent for counts. A fluctuating rate applies to paper covering the acquisition of rediscounts of certain industrial paper and on advances against promissory capital goods. notes or securities of first-class Venezuelan companies. Colombia—5 per cent for warehouse receipts covering approved lists of Vietnam—10 per cent for export paper; treasury bonds are rediscounted products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent at a rate 4 percentage points above the rate carried by the bond; and for rediscounts in excess of an individual bank’s quota; there is a penalty rate of 24 per cent for banks whose loans exceed quan Costa Rica—5 per cent for paper related to commercial transactions titative ceilings. (rate shown is for agricultural and industrial paper); Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 1971 p 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 r m b e i a o l s l n s u t , r h y s D m a d o y a n - y e to y - a B d ll e a o n p w o k o n a e s n r i s t c s * e D m a o d y n a - e y t y o - 3 T 6 r d b e 0 a i a - l y s l 9 s s u 0 , 4 ry D m a o d y n a - e y t y o s - 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—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 6.00 5.75 7.32 5.05 5.41 5.25 Mar. 3.30 3.48 8.06 6.66 6.12 5.00 5.77 5.75 7.36 4.49 3.27 5.25 Apr., 3.04 2.65 7.06 5.75 5.15 4.00 4.75 4.23 3.59 1.13 5.25 May. 3.06 2.76 7.06 5.65 5.36 4.00 3.88 1.84 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 a to n d B a b n a k c i k n g d a a n ta d , M se o e n e “ ta In ry te r S n ta at t i is o t n ic a s l , 1 F 9 in 62 a . nce,’ 4 Rate in effect at end of month. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Premium Premium Date United d ( i + sc ) o u o n r t inc N en e t t ive Canada d ( i + sc ) o u o n r t inc N en e t t ive q K ( u i a b o n U d a t g j s . a . S d i t s o i . t ) o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) f ( p o - r o w ) u n a o r d n d L ( o f n a o v d f o o r n) qu A i o n t s ed q A uo U d t j . a . S 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 f ( d o a - o n r ) w l a l d a a o r i r n a s d n C ( a fa n o v a f o d r a) Canada basis 1970 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 .14 -.19 Apr. 2............ 5.64 3.58 2.06 -2.25 -.19 3.13 3.06 3.58 -.52 .32 -.20 9............ 5.67 3.78 1.89 -2.61 -.72 3.03 2.98 3.78 -.80 .40 -.40 16............ 5.70 3.82 1.88 -2.79 -.91 3.12 3.05 3.82 -.77 .52 -.25 23............ 5.58 3.70 1.88 -2.32 -.35 3.03 2.97 3.70 -.73 .93 .20 30............ 5.55 3.93 1.62 -2.13 -.51 3.01 2.95 3.93 -.98 .81 -.17 May 7.............. 5.55 3.74 1.81 -1.14 .67 3.15 3.08 3.74 -.66 1.67 .61 14.............. 5.52 3.98 1.54 -1.11 .43 3.05 2.99 3.98 -.99 1.31 .32 21.............. 5.52 4.28 1.24 -1.17 .07 2.95 2.89 4.28 -1.39 1.21 -.18 28.............. 5.66 4.26 1.40 -.91 .49 3.03 2.97 4.26 -1.29 1.17 -.12 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 JUNE 1971 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti Intl. Esti E pe n r d i o o d f m to a t t a e l d M ta o r n y e U S n ta i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n t A ra u l s ia A tr u ia s g B iu e m l Brazil Burma Canada Chile world i 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—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.. 4i,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..., 4,400 11,039 191 140 240 714 1,468 45 42 791 Mar... *41,260 4,404 10,963 *25,895 191 140 239 714 1,466 45 42 791 Apr.*. 4,338 10,925 191 253 728 1,502 46 42 791 Ger E pe n r d i o o d f lo C m o b ia m De a n rk r 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 19 56 2,107 304 196 5 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 196 9 26 89 45 3,547 4.079 130 243 158 193 39 46 2,956 413 1970—Apr.. 27 89 45 3,544 4.079 120 243 158 151 26 46 2,978 469 May. 27 89 45 3,541 4.079 120 243 158 151 26 46 2.981 472 June. 26 89 45 3.543 4.080 120 243 158 151 26 46 2.982 472 July.. 26 89 45 3.543 4.080 120 243 158 151 26 46 2.983 473 Aug.. 26 89 45 3.537 4.080 120 243 158 151 26 45 2.983 474 Sept.. 26 89 45 3.537 4.081 119 243 148 151 26 45 2.983 530 Oct... 26 64 45 3.537 4.081 119 243 148 151 26 45 2.983 530 Nov.. 18 64 45 3,533 4.081 117 243 131 144 16 43 2,981 532 Dec.. 17 64 29 3.532 3,980 117 243 131 144 16 43 2,887 532 1971—Jan... 17 64 29 3.532 3,979 114 243 131 144 16 43 2,886 532 Feb... 17 64 29 3,531 3,978 99 243 131 144 16 43 2,885 534 Mar.. 16 64 29 3.527 3,977 99 243 131 144 16 43 2.884 539 Apr.* 16 64 29 3.527 4,029 131 143 16 2.884 636 E pe n r d i o o d f Kuwait a L n e o b n Libya M s a i l a ay Mexi- Moroc- N la e n th d e s r- N w o ay r P s a ta k n i Peru P p h i i n l e ip s Po g r a t l u A S r a a u b d i i a 196 4 48 183 17 169 34 1,688 31 67 23 523 78 196 5 52 182 68 158 21 1,756 31 67 38 576 73 196 6 67 193 68 109 21 1.730 18 65 44 643 69 196 7 136 193 68 166 21 1,711 18 20 60 699 69 196 8 122 288 85 165 21 1,697 24 20 62 856 119 196 9 86 288 85 169 21 1,720 25 25 45 876 119 1970—Apr.. , 86 288 85 170 21 1.730 27 40 49 890 119 May., 86 288 85 171 21 1.730 27 40 50 890 119 June. 86 288 85 171 21 1.730 27 40 50 890 119 July.. 86 288 85 171 21 1.750 27 40 53 890 119 Aug.. 86 288 85 171 21 1.751 27 40 54 901 119 Sept.. 86 288 85 176 21 1,801 34 40 56 902 119 Oct... 86 288 85 176 21 1,801 33 40 59 902 119 Nov.. 86 288 85 176 21 1,832 23 40 59 902 119 Dec.. 86 288 85 176 21 1,787 23 40 56 902 119 1971—Jan... 86 288 85 176 21 1,812 23 58 902 119 Feb... 86 322 85 176 21 1,812 23 59 902 119 Mar.. 86 322 85 21 1,812 23 60 902 119 Apr.*, 86 322 85 21 1,863 31 61 119 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
JUNE 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 io o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er Taiwan T la h n a d i Turkey ( U E . g A y . p R t) . U K d n i o n it m g ed U gu r a u y V zu e e n l e a Y sl u av g i o a S I e f n t o t t r l l e . ments 4 196 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—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 i 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 82 82 126 85 162 384 32 -173 Mar.. 634 498 200 2,806 82 82 127 85 1,123 162 384 32 -73 Apr.p, 630 498 200 2,806 81 127 389 52 13 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 S n ta 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 li s a o A th l e l r 196 4 1.405.0 1,018.9 30.3 7.8 51.4 133.0 7.4 6.9 12.8 5.2 16.1 14.9 33.7 66.6 196 5 1.440.0 1,069.4 26.4 2.3 58.6 125.6 7.6 5.4 11.2 4.6 18.1 15.3 30.7 64.8 196 6 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 196 7 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 196 8 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969v.......... 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—Mar.. 94.3 7.1 .6 .5 .3 2.1 2.6 Apr.. 92.8 6.6 .5 .6 .3 1.8 1.7 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 .3 1.6 Sept.. 96.2 2.2 6.6 .7 .3 1.6 Oct.. 96.6 6.9 .6 .3 Nov.. 6.5 .6 .3 Dec.. 6.8 .5 1971—Jan.. 7.0 Feb.. 6.6 Mar.. 6.7 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
INCOME, EXPENSES, AND DIVIDENDS OF INSURED COMMERCIAL BANKS, 1970 (Income, etc. in thousands, and asset and liability items in millions, of dollars) 1 i Reserve city All Insured i All Item insured nonmember member Country banks banks banks Total New York j City of Other City Chicago 1 Operating income—Total.............................................................. 34,565,598 6,652,889 ; 21,912,109 16,795,569 5,115,670 1,229,997 10,449,903 11,117,140 Loans: 22,852,957 4,147,202 18,705,755 11,557,260 3,522,705 817,190 7,217,366 7,148,496 Federal funds sold and securities purchased with resale 1,003,667 222,648 781,019 426,056 93,744 31,274 301,038 354,963 Securities—Interest and dividends:1 3,067,375 859,205 2,208,170 1,031,323 278,777 81,457 671,089 1,176,847 Other U.S. Govt, securities (agencies and corporations). 685,246 270,577 414,669 121,714 36,273 7,767 77,674 292,955 Obligations of States and political subdivisions................. 2,615,705 525,437 2,090,268 1,096,087 295,807 79,630 720,651 994,181 All other securities................................................................ 150,904 32,480 118,424 75,648 26,424 I 5,650 43,574 42,776 1,132,077 57,454 1,074,623 836,978 336,384 79,220 421,374 237,645 Service charges on deposit accounts....................................... 1,172,845 305,284 867,561 398,302 66,141 5,891 326,270 469,260 838,561 157,365 681,195 437,581 105,238 20,012 312,331 243,615 Other operating income: On trading account (net)...................................................... 347,802 1,944 345,858 332,472 159,586 22,986 149,900 13,386 698,460 73,294 625,167 482,149 194,592 78,920 208,637 143,017 Operating expenses—Total.......................................................... 27,458,142 5,265,424 22,192,718 13,396,430 4,050,936 960,724 8,384,770 8,796,289 Salaries and wages of officers and employees......................... 6,625,658 1,343,627 5,282,031 3,079,929 905,389 180,684 1,993,855 2,202,102 Officer and employee benefits.................................................. 1,054,511 179,007 875,504 540,596 175,339 37,956 327,301 334,908 Interest paid on: Time and savings deposits.................................................... 10,388,369 2,249,584 8,138,786 4,368,621 995,439 288,472 3,084,710 3,770,165 Federal funds purchased and securities sold with re purchase agreement....................................................... 1,395,871 30,421 1,365,450 1,234,564 397,947 137,468 699,150 130,886 Other borrowed money........................................................ 463,223 19,230 443,993 412,717 227,896 34,600 150,221 31,276 Capital notes and debentures.............................................. 104,085 13,870 90,215 68,361 25,897 2,115 40,348 21,854 1,247,764 235,220 1,012,544 597,079 195,228 40,513 361,338 415,465 904,756 182,732 722,024 390,883 89,788 21,418 279,677 331,142 Provision for loan losses.......................................................... 694,932 160,648 534,283 310,645 81,685 29,540 199,420 223,639 Other operating expenses.......................................................... 4,578,974 851,086 3,727,889 2,393,037 956,329 187,958 1,248,750 1,334,852 Income before income taxes and securities gains or losses............ 7,107,456 1,387,465 5,719,991 3,399,140 1,064,734 269,273 2,065,133 2,320,851 Applicable income taxes........................................................... 2,172,085 396,711 1,775,373 1,131,798 370,085 91,738 669,975 643,576 4,935,372 990,754 3,944,618 2,267,342 694,649 177,535 1,395,159 1,677,275 Net securities gains or losses ( —) after taxes......................... -105,023 2,038 -107,061 -100,531 -55,291 -13,398 -31,840 -6,529 Extraordinary charges ( — ) or credits after taxes................... -13,164 1,740 -14,904 -19,399 2,991 -2,271 -20,117 4,495 Less minority interest in consolidated subsidiaries............... 244 206 38 -2 -2 41 Net income...................................................................................... 4,816,939 994,326 3,822,613 2,147,413 642,347 161,864 1,343,202 1,675,200 Cash dividends declared: On common stock..................................................................... 2,029,012 281,127 1,747,884 1,156,776 420,439 87,701 648,636 591,108 On preferred stock.................................................................... 6,739 582 6,158 5,273 2,931 2,341 885 Memoranda items: Income taxes applicable to 1970 operating income............... 2,172,085 396,711 1,775,373 1,131,798 370,085 91,738 669,975 643,576 Tax effect of: Net securities gains or losses ( —), etc................................. -143,684 -3,559 -140,124 -124,937 -60,324 -15,850 -48,761 -15,186 Transfers—Capital accounts to IRS loan loss reserves 2.. -167,062 -11,774 -155,288 -112,390 -57,719 -6,258 -48,413 -42,898 Total provision for income taxes, 1970..................................... 1,861,338 381,378 1,479,961 894,469 252,042 69,629 572,799 585,491 Federal.................................................................................... 1,617,589 345,394 1,272,195 742,258 185,294 67,428 489,536 529,937 State and local........................................................................ 243,750 35,984 207,765 152,211 66,747 2,201 83,263 55,554 A 94 INSURED AND MEMBER BANKS, 1970 □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Memoranda items (cont.): Occupancy expense of bank premises, gross....................... 1,546,262 270,693 1,275,570 781,413 231,600 62,454 487,360 494,156 Rental income from bank premises................................. 298,498 35,473 263,025 184,334 36,371 21,941 126,022 78,691 Net security gains or losses (—) before income taxes.... -225,588 -964 -224,623 -203,644 -117,114 -26,931 -59,596 -20,978 Extraordinary charges (-) or credits before income tax. -36,284 1,183 -37,466 -41,225 4,488 -4,589 -41,123 3,759 Reserves for losses on loans:3 Ba A la d n d c i e t i a o t n s b e d g u in e n t i o n g m o e f r y g e er a s r . a .. n .. d .. .. a .. b ... s . o .. r .. p ... t . i . o ... n .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,96 3 5 1 , , 2 1 2 0 4 8 86 2 6 , , 9 0 8 18 0 5,09 2 9 8 , , 2 1 0 2 6 8 3,38 1 5 3 , , 8 7 5 4 1 0 1,248 5 , , 3 54 1 1 6 290,709 ,8486,,280206 1,71 1 3 4 , , 3 8 5 33 5 Recoveries credited to reserves...................................... 254,686 49,403 205,283 103,544 26,373 8,347 68,824 101,294 Transfers to reserves........................................................ 1,107,772 232,132 875,640 533,964 186,742 43,430 303,791 341,677 L Tr o a s n se s s f e c r h s a f r r g o e m d to r e r s e e s r e v r e v s e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,22 3 4 2 , , 4 67 4 1 5 22 1 1 2 , , 5 4 7 4 2 7 1,00 2 2 0 , , 8 2 7 2 3 4 62 7 6 , , 1 40 1 8 4 209,93 1 2 0 50 1 , , 4 2 6 1 2 0 36 5 6 , , 8 0 9 1 4 4 37 1 6 3 , , 4 1 6 1 6 0 Balance at end of year......................................................... 6,101,673 916,513 5,185,160 3,403,578 1,257,030 290,815 ,855,734 1,781,582 Net loan losses ( —) or recoveries4...................................... -978,051 -176,521 -801,529 -522,863 -183,558 -42,114 -297,189 -278,666 Reserves on securities: Balance at beginning of year............................................... 179,232 51,02142 128,260688 64,603 738 7,051 56,813 63,660668 Additions due to mergers and absorptions................. 680 Recoveries credited to reserves...................................... 1,258 499 759 118 118 642 Transfers to reserves........................................................ 29,436 7,669 21,767 8,442 838 7,604 13,325 Losses charged to reserves.............................................. 2,875 1,040 1,835 413 413 1,422 Transfers from reserves.................................................. 25,042 6,411 18,632 11,718 434 923 10,361 6,914 Balance at end of year......................................................... 182,688 51,753 130,935 61,031 304 6,966 53,761 69,903 Total net changes in capital accounts........................................ 220,477 920,302 2,300,175 994,054 176,326 66,859 750,868 1,306,122 N C e o t m i m nc o o n m s e t o tr c a k n s s o fe l r d r e (n d e t t o ) . u ... n .. d .. i .. v .. i . d .. e .. d .. .. p .. r .. o .. f .. i . t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1 1 2 6 7 , , 9 1 3 89 9 9 7 9 9 4 , , 1 3 5 2 1 6 3,82 4 2 8 , , 6 0 1 3 3 9 2,147 1 , , 4 1 1 51 3 642,347 161,86 49 4 1,3431,,210022 1,67 46 5 , , 8 2 8 0 8 0 Preferred stock, capital notes, and debentures sold........ 199,461 56,469 142,992 95,871 1,958 93,913 47,120 Premium received on new capital stock sold..................... 259,205 129,773 129,432 30,819 85 30,734 98,613 Transfers from loan and securities reserves....................... 57,713 18,858 38,856 18,832 444 2,133 16,255 20,024 Other increases.......................................................................... 513,980 99,392 414,587 146,280 31,907 17,528 96,845 268,308 Dividends declared................................................................... 035,751 281,709 1,754,042 1,162,049 423,371 87,701 650,978 591,993 Transfers to loan and securities reserve (net of tax effect) 275,563 67,379 208,184 119,370 47,338 8,470 63,562 88,814 Other decreases.......................................................................... 442,695 108,578 334,117 164,893 29,620 18,629 116,643 169,224 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and resale purchases).................................................................................. 300,536 54,427 246,109 150,398 46,782 10,991 92,625 95,711 U.S. Treasury securities1............................................................. 54,069 14,813 39,256 18,003 4,643 1,362 11,997 21,253 Other U.S. Govt, securities (agencies and corporations)1... 10,402 4,078 6,324 1,878 528 97 1,253 4,446 Obligations of States and political subdivisions1................... 61,929 12,581 49,348 25,339 6,155 1,830 17,353 24,009 All other securities1....................................................................... 2,402 525 1,877 1,144 349 95 699 734 Cast assets......................................................................................... 88,894 10,203 78,691 54,652 22,378 2,833 29,441 24,039 Total assets5.................................................................................... 542,255 99,235 443,020 267,905 87,601 18,703 161,601 175,114 Time and savings deposits............................................................. 211,074 47,464 163,610 82,993 17,419 5,315 60,259 80,617 Total deposits................................................................................... 448,135 87,414 360,721 207,615 63,394 13,857 130,364 153,106 Total capital accounts plus total reserves................................. 47,239 8,846 38,393 23,248 7,639 1,856 13,752 15,146 Equity capital plus total reserves................................................ 45,203 8,611 36,592 21,836 7,113 1,816 12,907 14,756 N N u u m m b b e e r r o o f f o b f a fi n c k er s s . .. a .. n .. d ... . e .. m .... p .. l . o .. y ... e .. e . s .. . 95 1 4 3 , , 4 5 9 0 9 2 20 7 9 , , 7 0 3 43 5 74 5 5 , , 7 4 6 5 7 6 399,0 1 3 7 4 8 101,00 1 8 2 22,085 9 275,9 1 4 5 1 7 34 5 6 , , 5 4 8 2 9 2 For notes see p. A-101. JUNE 1971 □ INSURED AND MEMBER BANKS, 1970 A 95 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME, EXPENSES, AND DIVIDENDS, BY FEDERAL RESERVE DISTRICT (Income, etc. in thousands, and asset and liability items in millions, of dollars) Item New Phila Cleve Rich St. Minne Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco 1,288,6077,110,027 1,304,570 2,035,605 1,438,9361,828,5394,162,979 877,377 716,7601,139,8521,408,3334,601,124 Loans: 858,631 4,860,057 895,472 1,331,900 971,074 1,167,511 2,724,257 559,906 473,507 726,330 936,5723,200,541 Fed. funds sold and securities purchased with resale 33,369 139,643 35,470 59,219 39,519 78,396 124,336 31,166 12,588 46,210 61,489 119,615 84,916 432,120 107,213 209,916 126,690 160,897 405,133 103,563 70,726 120,557 111,654 274,785 Other U.S. Govt, securities (agencies and corporations). .. 11,128 63,407 18,200 24,352 29,664 41,393 82,132 21,040 17,387 19,774 28,866 57,325 94,056 514,758 97,399 200,225 107,683 143,885 325,777 64,422 53,032 80,507 119,648 288,877 3,768 34,909 7,136 8,736 3,559 7,142 20,587 3,246 1,501 6,230 5,032 16,581 Trust department income.................................................................. 90,745 389,531 57,592 75,139 40,378 46,351 150,823 20,711 17,017 33,359 36,823 116,155 Service charges on deposit accounts............................................... 40,190 148,954 35,609 52,886 56,540 81,803 96,687 26,012 26,357 46,539 48,679 207,307 Other charges, fees, etc...................................................................... 40,318 134,423 26,242 40,686 32,993 55,530 82,040 19,983 23,309 38,194 31,146 156,332 Other operating income: On trading account (net)............................................................... 6,843 164,079 5,310 4,430 11,729 10,377 32,252 12,082 13,096 6,373 8,556 70,731 Other.................................................................................................. 24,644 228,147 18,927 28,117 19,107 35,255 118,956 15,248 8,242 15,780 19,868 92,876 Operating expenses—Total.................................................................... 1,015,7975,631,982 1,006,7361,566,5601,114,957 1,437,6933,341,872 671,683 565,207 868,8541,093,9043,877,473 Salaries and wages of officers and employees.............................. 290,445 1,306,980 244,543 346,235 308,632 367,187 705,100 159,402 121,564 227,605 244,486 959,852 Officer and employee benefits........................................................... 49,694 245,892 47,576 50,913 47,269 55,772 119,602 25,091 20,058 30,389 34,168 149,080 Interest paid on: Time and savings deposits............................................................ 262,215 1,651,685 409,795 667,119 402,725 497,607 1,408,600 261,993 250,233 313,755 416,773 1,596,286 Federal funds purchased and securities sold with repur chase agreement....................................................................... 67,545 441,287 51,958 76,003 32,865 64,219 218,668 45,248 30,052 38,480 90,112 209,013 Other borrowed money.................................................................. 19,809 243,130 7,211 9,157 5,890 30,893 60,902 2,313 9,286 6,988 12,961 35,453 Capital notes and debentures....................................................... 3,866 32,575 5,582 3,492 3,813 4,986 12,238 2,554 1,745 2,484 1,821 15,060 Occupancy expense of bank premises, net.................................... 55,912 280,565 46,351 62,579 55,022 60,689 143,927 28,629 19,174 34,956 39,021 185,720 Furniture, equipment, etc.................................................................. 41,769 140,810 35,040 52,547 46,775 62,858 105,909 26,454 24,345 38,001 42,814 104,702 Provision for loan losses.................................................................... 24,306 114,579 18,136 31,545 23,302 51,439 87,955 18,336 8,693 27,904 41,469 86,622 Other operating expenses................................................................... 200,237 1,174,479 140,545 266,970 188,665 242,042 478,974 101,663 80,058 148,291 170,280 535,686 Income before income taxes and securities gains or losses............... 272,8101,478,045 297,834 469,046 323,979 390,846 821,107 205,695 151,553 270,999 314,428 723,650 Applicable income taxes.................................................................... 94,554 470,429 87,756 118,591 106,163 119,088 255,096 65,767 51,098 89,558 94,126 223,149 Income before securities gains or losses........................................ 178,257 1,007,616 210,078 350,455 217,816 271,758 566,011 139,927 100,455 181,441 220,302 500,502 Net securities gains or losses ( —) after taxes............................... -660 -62,998 -3,692 -13,320 -3,326 -1,150 -19,470 261 -1,124 630 80 -2,283 Extraordinary charges ( —) or credits after taxes........................ -268 3,754 620 602 -727 5 -2,361 1,025 839 504 -587 -18,305 18 15 1 4 1 Net income................................................................................................. 177,326 948,371 207,004 337,736 213,761 270,612 544,160 141,198 100,169 182,570 219,794 479,912 Cash dividends declared: On common stock............................................................................... 87,989 550,484 96,724 136,772 84,959 96,659 219,583 48,186 38,289 80,157 80,181 227,903 On preferred stock ........................................................................... 38 2,939 41 362 638 140 1,607 25 315 32 22 Memoranda items: Income taxes applicable to 1970 operating income................... 94,554 470,429 87,756 118,591 106,163 119,088 255,096 65,767 51,098 89,558 94,126 223,149 Tax effect of: Net securities gains or losses ( —), etc........................................ -95 -69,488 -3,648 -13,756 -4,424 -5,065 -20,427 130 -1,006 -1,054 55 -21,337 Transfers—Capital accounts to IRS loan loss reserves2. ... -8,412 -66,530 -6,610 -9,932 -8,006 -9,347 -17,638 -4,885 -3,178 -4,499 -6,479 -9,773 Total provision for income taxes, 1970........................................... 86,046 334,410 77,497 94,902 93,732 104,675 217,029 61,012 46,913 84,005 87,702 192,037 Federal................................................................................................ 63,886 251,971 76,613 94,866 87,162 101,430 199,486 59,197 37,078 76,284 87,395 136,828 State and local.................................................................................. 22,161 82,439 885 35 6,570 3,245 17,543 1,816 9,835 7,720 307 55,209 A 96 MEMBER BANKS, 1970 □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Memoranda items (cont.): 1 Occupancy expense of bank premises, gross................................ 64,831 327,438 53,312 82,873 64,392| 88,918 187,240 32,640 27,238 50,806 72,980 222,901 Rental income from bank premises........................................... 8,920 46,873 6,961 20,295 9,370 28,229 43,313 4,011 8,064 15,850 33,959 37,181 Net securities gains or losses ( —) before income taxes............. -901 -133,544 -7,543 -27,323 -7,1511 -5,765 -37,423 256 -2,029 191 -4 -3,380 Extraordinary charges ( —) or credits before income tax.......... -123 4,811 822 848 -1,327! -446 -4,836 1,159 737 -112 -447 -38,546 Reserves for losses on loans: 3 Balance at beginning of year......................................................... 216,223 1,614,821 245,059 335,088 224,232 261,494 791.3551; 129,801 114,573 160,050 228,182 778,328 Additions due to mergers and absorptions.......................... 851 11,582 4,693 3,049 3,160l 341 '467: 171 165 112 3,844 Recoveries credited to reserves............................................... 8,640 38,932 6,494 13,619! 8,470; 18,642- 29,407;i 6,377i 3,169 14,565 ‘i9jio6 37,862 Transfers to reserves.................................................................. 40,681 238,370 34,423 53,982! 39,236; 76,917; 127,810;; 36,688! 16,019 40,333 62,540 108,642 Losses charged to reserves....................................................... 44,891 266,3771 32,072 62,585 45,524 88,769! 139,6521 34,813! 14,321 49,874 76,313 147,682 Transfers from reserves............................................................ All 2,0941 1,838 1,414! 702! 1,475; 4,144 4,0231 589 577 795 2,097 221,0251,635,235 256,759i 341,741: 228,871! 266,843 805,244'! 134,2021 119,016 164,609 232,718 778,898 Net loan losses (—) or recoveries 4................................................ -36,289 -227,444 -25,573\ -49,348 -37,074: -70,440 110,471 28,513 11,179 -36,444 — 58,745 — 110,018 Reserves on securities: i ! j ! Balance at beginning of year......................................................... 2,077 5,237l 1,105 36,391! 6,059 10,746 21,520 14,072I 1,893 2,927 22,136 4,047 19! 8i 32.................i. 10........... 600 Recoveries credited to reserves............................................... ni 79 j; 13 12 1 12 781 123 15 46 36 175 Transfers to reserves.................................................................. 283 4171 78 4,896' 535! 2,0111 2,130! 1,620 401 371 7,588 1,437 Losses charged to reserves....................................................... 16 258!! 2! 423 16' Q ! 153: 7* 19 34 665 165 Transfers from reserves............................................................. 659 1,193 142 6.643 409 i 828! 3,921! 2,637 386 43 1,768 3 Balance at end of year.................................................................... 1,856 4,301\ 1,060j 34,265 6J70\ 11,932 19,652\ 13,113I 1,904 3,267 27,926 5,490 Total net changes in capital accounts................................................... 95,365! 398,336 182,4011 226,256! 162,8701 217,881 340,240 96,706: 68,856 106,273 132,795 272,195 Net income transferred to undivided profits................................ 177,326i 948,371 207,004I 337,736: 213,761! 270,612 544.160 141,198 100,169 182,570 219,794 479,912 Common stock sold (net)................................................................. 1,385 4,232 5,659i 4,511 3,781! 10,376 5,423 89 1,170 1,770 6,824 2,820 Preferred stock, capital notes, and debentures sold................... 6,2701 7,150 20,000 4,085 26,140; 3,838' 17,451 2,461 4,935 6,424 37,587 6,650 Premium received on new capital stock sold............................... 2,988| 9,365; 12,987 9,514 5,602* 4« H ? 744 1,156 2,956 7,416 17,825 Transfers from loan and securities reserves.................................. 1,137i 3,287 1,980 8.057 Kin! 213031 8^064! 6^660! 974 620 2,563 2,100 11,180 89,777! 54,774 41,961 27,463 19,358 49,399i 17,848I 9,121 20,931 24,749 48,028 Dividends declared.............................................................................. 88,027! 553,423! 96,764 137,134 85,596: 96,799 221,190 48,186! 38,314 80,471 80,213 227,925 Transfers to loan and securities reserves (net of tax effect). ... 8,247; 57,6781 9,755 17,402 8,463; 18,142 24,695 15,088: 4,548 8,302 22,180 13,684 Other decreases.................................................................................... 8,647j 52,744! 13,484 25,071 20,929 21,979; 46,937 11,020j 5,806 20,225 63,745 43,530 1 j Assets, deposits, and capital accounts: ! Loans gross (including Federal funds sold and resale pur ! i chased agreements)................................................................... 10,711 64,934 12,158 18,180 12,255 14,713 37,188 7,653 6,265 9,614 12,494 39,943 U.S. Treasury securities 1................................................................. 1,457 7,556 1,922, 3,708 2,164 2,887 7,182 1,802 1,326 2,126 2,056 5,071 Other U.S. Govt securities (agencies and corporations) 1......... 159 989 279 368 440 624 1 ,217 332 261 298 438 917 Obligations of States and political subdivisions 1....................... 2,263 11,299 2,484 4.764 2,620 3.3*8 7,741 1,625 1,283 1,998 2,871 7,042 All other securities 1.......................................................................... 69 481 119 138i 71 100 352 64 28 120 91 245 Cash assets............................................................................................ 3,184 26,280 3,076! 4,645 3,540 5,196 10,139'| 2,668 1,712 3,471 4,618 10,163 Total assets 5........................................................................................ 18,662 119,230 20,708 32,720 21,865 27,964, 66,697 14,661 11,357 18,221 23,575 67,361 Time and savings deposits................................................................ 5,398 31,620 8,696 14,4321 8,517' 10,212 28,751! 5,350 5,070 6,477 8,065 31,022 Total deposits....................................................................................... 14,724 90,384 17,388j 27,317| 18,655! 23,741! 55,115 12,492 9,661 15,616 19,720 55,907 Total capital accounts plus total reserves..................................... 1,741 10,437 1,903 3,1761 1,933; 2,470! 5,669! 1,335 916 1,690 2,059 5,064 Equity capital plus total reserves.................................................... 1,667 9,783 1,822, 3,114 1,857.; 2,356 5,439| 1,283 885 1,643 2,003 4,739 1 Number of officers and employees..................................................... 42,520 159,869 37,394! 50,976 48,482 56,376j 98,833: 33,321 16,721 32,825 35,090 133,049 Number of banks..................................................................................... 231 351 321j 470; 361; 546! 943! 459 489 807 634 155 i ! For notes see p. A-101. JUNE 1971 □ MEMBER BANKS, 1970 A 97 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME, EXPENSES, AND DIVIDENDS OF RESERVE CITY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income etc., in thousands, and asset and liability items in millions, of dollars) Federal Reserve District Item New Phila Cleve Rich St. Minne Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Francisco Operating income—Total............................................. 503,348 5,328,045 612,780 1,189,223 729,601 696,994 2,226,694 413,654 229,383 389,999 625,406 3,850,443 Loans: Interest and fees...................................................... 324,218 3,679,962 444,427 802,065 501,905 479,018 1,508,426 281,095 159,293 261,448 429,297 2,686,107 Federal funds sold and securities purchased with resale agreement................................... 14,996 94,810 10,878 31,223 16,746 27,102 60,196 15,535 2,890 16,210 31,792 103,680 Securities—Interest and dividends:1 U.S. Treasury securities....................................... 32,472 292,111 31,655 91,322 57,760 43,392 159,951 32,408 9,678 25,483 34,572 219,915 Othe c r o r U p . s S ). . . ... G ... o .. v ... t . , . ... s .. e .. c . u ... r .. i . t . i .. e .. s . ... ( . a .. g ... e .. n .. c .. i . e .. s .. .. a .. n ... d .. 4,472 36,882 106 6,598 7,606 3,604 14,490 1,419 581 1,276 2,886 41,793 Obligations of States and political subdivisions 241,,427119 312,484 34,118 117,219 53,665 42,506 156,834 25,507 12,812 21,916 55.301 239,247 All other securities................................................. 26,737 2,116 5,782 1,667 4,312 9,464 1,345 390 4,541 2,632 15,452 Trust department income......................................... 53,243 340,807 37,503 58,539 27,999 24,279 114,575 13,420 12,835 23,790 27,128 102,860 Service charges on deposit accounts..................... 5,969 73,398 16,033 24,653 28,703 23,987 31,613 10,624 3,642 7,550 8,276 163,853 Other charges, fees, etc............................................. 23,801 107,328 17,578 27,191 14,352 21,684 43,655 10,636 10,411 15,644 15,500 129,799 Other operating income: On trading account (net)..................................... 4,441 161,975 5,310 4,389 8,367 8,369 32,145 11,644 13,095 5,431 8,379 68,927 Other......................................................................... 14,047 200,945 13,054 20,242 10,830 18,742 95,345 10,023 3,757 6,711 9,644 78,810 Operating expenses—Total........................................... 397,327 4,227,888 472,658 902,391 560,069 547,098 1,777,737 314,714 170,475 298,028 475,432 3,252,616 Salaries and wages of officers and employees 106,501 943,396 118,930 192,978 159,867 139,528 351,107 72,731 36,670 77,216 91,273 789,731 Officer and employee benefits.................................. 17,051 181,701 27,482 28,510 25,641 24,159 66,173 13,063 6,236 10,728 14.301 125,553 Interest paid on: Time and savings deposits.................................. 68,319 1,068,482 150,347 357,942 181,534 150,613 640,136 99,378 47,241 83,431 168,947 1,352,252 Federal funds purchased and securities sold with repurchase agreement......................... 51,714 408,829 49,854 70,900 25,258 45,983 202,985 43,011 26,581 30,074 80,963 198,413 Other borrowed money........................................ 14,380 237,603 6,614 8,343 4,258 28,598 55,307 1,596 8,660 4,179 11,479 31,700 Capital notes and debentures.............................. 1,977 26,723 4,594 2,622 3,363 3,113 8,826 2,105 695 1,383 871 12,090 Occupancy expense of bank premises, net.......... 18,700 203,193 22,659 34,958 29,973 22,482 75,994 12,986 4,644 10,087 9,530 151,873 Furniture, equipment, etc......................................... 14,938 93,545 16,592 27,688 24,863 24,962 50,717 12,434 10,250 15,366 18,703 80,826 Provision for loan losses.......................................... 8,793! 85,874 10,764 16,994 10,127 20,989 54,360 8,905 2,532 9,569 11,802 69,937 Other operating expenses......................................... 94,955 978,543 64,824 161,456 95,185 86,672 272,132 48,505 26,967 55,996 67,563 440,240 Income before income taxes and securities gains or losses.......................................................................... 106,022 1,100,158 140,121 286,832 169,532 149,897 448,958 98,941 58,908 91,971 149,974 597,827 Applicable income taxes........................................... 42,870 379,994 46,514 74,183 58,876 52,121 153,069 35,417 24,635 32,847 47,686 183,586 Income before securities gains or losses............... 63,1-512 720,164 93,608 212,649 110,656 97,776 295,889 63,523 34,273 59,124 102,218092 414,241 Net securities gains or losses ( —) after taxes. .. -2 -55,417 -2,363 -13,455 -1,070 -1,234 -22,061 -1,179 -643 -77 -3,124 Extraordinary charges ( —) or credits after taxes 2,960 369 -293 -674 -2,271 956 -224 -513 -19,700 Less minority interest in consolidated subsi diaries ................................................................... Net income. 63,147 667,706 91,244 199,562 109,291 95,867 271,554 63,302 33,629 58,821 101,877 391,415 Cash dividends declared: On common stock.... 30,735 435,563 48,664 91,345 45,916 44,720 135,310 26,300 14,875 41,011 43,695 198,643 On preferred stock... . 2,931 638 140 1,539 25 Memoranda items: Income taxes applicable to 1970 operating in come ...................................................................... 42,870 379,994 46,514 74,183 58,876 52,121 153,069 35,417 24,635 32,847 47,686 183,586 Tax effect of: -121 Net securities gains or losses ( —), etc.............. 569 -60,387 -2,232 -13,041 -1,783 -3,977 -20,517 -407 -615 -451 -21,967 Transfers—Capital accounts to IRS loan loss reserve 2............................................................ -3,553 -57,792 -4,712 -7,043 -4,199 -5,220 -10,517 -3,855 -1,388 -3,684 -4,103 -6,324 Total provision for income taxes, 1970.................. 39,885 261,813 39,570 54.099 52,894 42,923 122,034 31,154 22,631 28,711 43.461 155,294 Federal...................................................................... 30,362 192,919 39,495 54.099 47,974 41,925 112,719 30,377 17,735 26,029 43.461 105,165 State and local........................................................ 9,523 68,894 74 4,920 998 9,315 778 4,897 2,683 50,130 A 98 MEMBER BANKS, 1970 □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Memoranda Items (cont.): Occupancy expense of bank premises, gross.... 22,108 243,196 26,778i 49,804 34,359 39,849 103,715 15,262 9,580 20,352 33,152 183,259 Rental income from bank premises.................. 3,408 40,003 4,119 14,846 4,387 17,367 27,722 2,275 4,937 10,264 23,622 31,386 Net securities gains or losses (—) before income 570 -117,317 -4,595 -26,626 -2,473 -4,618 -40,261 -1,668 -1,259 -488 -28 -4,872 Extraordinary charges (—) or credits before in- — 5 4,472 498 -674 -1,267 -4,589 1,036 -265 -503 -39,920 Reserves for losses on loans:3 88,684 1,303,038 127,489 213,557 120,947 109,242 470,226 65,846 36,656 64,239 109,356 676,572 Additions due to mergers and absorptions.. 5,541 744 1,764 1,935 445 3,313 Recoveries credited to reserves...................... 2,009 28,229 2,981 6,192 2,710 6,0118 i3,360 2,889 393 4,693 5,169 28,903 Transfers to reserves........................................ 15,404 191,080 21,028 31,560 18,403 33,176 77,046 21,817 4,853 16,901 20,789 81,908 Losses charged to reserves.............................. 16,176 216,124 19,878 38,400 22,755 41,808 83,894 20,569 3,674 21,452 26,104 115,573 10 1,229 180 454 60 1,322 3,363 496 Balance at end of year.......................................... 89,922 1,311,753 131,134 214,492 120,785 106,569 475,416 66,620 38,227 64,380 109,655 674,626 Net loan losses (—) or recoveries 4..................... -14,165 -187,894 -16,896 -32,207 -20,045 -35,789 -70,533 -17,679 -3,281 -16,758 -20,934 -86,669 Reserves on securities: 486 1,294 28,112 791 3,819 8,257 9,827 171 11,220 626 118 3,642 14 379 838 653 2,876 40 248 165 458 925 5,648 \9 2,043 2,507 3 113 1 29 369 25,858 805 4,179 7,051 7,973 168 13,983 617 Total net changes in capital accounts......................... 28,660 186,527 63,032 111,917 84,273 70,998 127,457 40,045 20,816 14,616 48,247 197,467 Net income transferred to undivided profits.... 63,147 667,706 91,244 199,562 109,291 95,867 271,554 63,302 33,629 58,821 101,877 391,415 Common stock sold (net)........................................ 118 540 197 54 104 18 121 Preferred stock, capital notes, and debentures soldi........................................................................ 1,958 20,000 2,916 25,000 6,200 446 1,333 3,000 35,019 Premium received on new capital stock sold.. .. 519 461 26,621 244 384 18 260 2,314 Transfers from loan and securities reserves......... 458 935 1,229 5,828 454 79 3,365 5,870 3 113 *497 Other increases........................................................... 251 31,907 7,443 21,405 10,867 4,985 19,751 7,241 1,755 2,403 2,963 35,310 Dividends declared.................................................... 30,735 438,494 48,664 91,345 46,554 44,860 136,849 26,300 14,875 41,011 43,720 198,643 Transfers to loan and securities reserves (net of tax effect)............................................................. 3,058 47,414 5,553 11,165 4,091 7,346 13,006 9,709 933 3,648 7,761 5,686 Other decreases.......................................................... 1,402 30,071 2,667 15,920 11,695 4,544 23,856 1.292 128 4,952 40,626 27,740 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and re sale purchases)................................................... 3,857 48,741 5,771 10,651 6,137 5,755 20,591 3,772 2,042 3,495 5,982 33,605 U.S. Treasury securities1......................................... 553 4,875 552 1,588 947 797 2,754 551 186 454 681 4,063 Other U.S. Govt, securities (agencies and corps)1.................................................................. 61 538 6 113 105 54 213 28 13 21 54 671 Obligations of States and political subdivisions1 622 6,581 877 2,739 1,293 961 3,654 644 292 552 1,273 5,850 All other securities1................................................... 24 356 35 90 31 52 162 32 8 90 43 221 Cash assets.................................................................. 1,435 22,763 1,770 2,946 2,078 2,312 6,294 1,531 775 1,562 2,366 8,820 Total assets5................................................................ 7,013 90,788 9,420 18,738 11,003 10,441 35,763 6,892 3,615 6,460 11,018 56,753 Time and savings deposits...................................... 1,216 18,853 2,913 7,288 3,766 3,024 12,397 1,908 902 1,692 3,103 25,932 Total deposits............................................................. 4,927 65,858 7,510 15,022 9,257 8,420 27,669 5,576 2,783 5,296 8,630 46,666 Total capital accounts plus total reserves........... 663 7,924 861 1,923 982 982 3,158 646 301 616 969 4,222 Equity capital plus total reserves........................... 623 7,380 793 1,876 915 902 2,983 603 289 584 929 3,957 Number of officers and employees............................ 13,401 106,796 16,491 25,910 23,967 20,168 45,760 11,342 3,934 10,736 11,702 108,827 Number of banks........................................................... 5 15 6 16 15 20 24 15 8 18 17 19 For numbered notes see p. A-101. JUNE 1971 □ MEMBER BANKS, 1970 A 99 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME, EXPENSES, AND DIVIDENDS OF COUNTRY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Income, etc. in thousands, and asset and liability items in millions, of dollars) New' Item Phila- ! Cleve- ! Rich- ! St. Minne Kansas San Boston I York delphia j land j mond i Atlanta i Chicago i Louis apolis City Dallas j Francisco Operating income—Total....................................................................... 785,25911,781,982 691,790 846,383| 709,335! 1,131,545 1,936,285j 463,723 487,377 749,854 782,92e| 750,681 Loans: I ! Interest and fees............................................................................... 534,4131,180,094; 451,045! 529,835 469,169! 688,493 1,215,832; 278,811 314,214 464,882 507,275 514,434 Federal funds sold and securities purchased with resale i agreement................................................................................. 18,373! 44,833 24,592 27,996; 22,774 51.294 64,14l! 15,632 9,698 30,000 29,697 15,936 Securities—Interest and dividends:1 U.S. Treasury securities................................................................. 52,444 139,4031 75,558': 118,595! 68,930! 117,505; 245,182, 71,156 61,048 95,075! 77,083! 54,870 Other U.S. Govt, securities (agencies and corps)................... 6,656! 26,526! 18,094! 17,754! 22,058’ 37,789: 67,642i 19,621 16,806 18,498 25,980! 15,531 A O l b l li o g t a h t e i r o n s s e c o u f r S it t i a e t s e .. s .. . a .. n ... d .. .. p ... o .. l . i . t .. i . c .. a .. l . ... s . u ... b .. d ... i . v .. i . s .. i . o .. n ... s .. . . . . . . . . . . .. . . . . . . . . . . . . . . . . .. . . . . . . . .. 6 2 9 , , 5 5 5 7 6 7 1 i 202 8 , , 2 1 7 7 5 1 1 i 63 5 , , 2 0 8 1 1 9) 8 2 3 , . 9 0 5 0 5 6 : 54 l, , 8 0 9 1 2 8 i 10 2 1 . , 8 3 3 7 0 9 1 16181,,1924241! 38 1 , . 9 9 1 0 5 1i 40 1 , , 2 11 2 2 0 ! 58 1 , , 5 6 9 8 1 9! 6 2 4 , , 4 3 0 4 0 7 1 ! 49 1 , . 6 1 2 2 9 9 Trust department income.................................................................. 37,502' 48,723, 20,089, 16,599 12,378 22,072; 36,249, 7,291; 4,1831 9,569; 9,695; 13,295 Service charges on deposit accounts.............................................. 34,221! 75,555 19,576 28,233' 27,837' 57,816 65,073 15,388; 22,715' 38,988, 40,403 43,454 Other charges, fees, etc....................................................................... 16,517| 27,095 8,664; 13,495!I 18,640 33.846! 38.385 9,347! 12,897! 22,550; 15,646 26,533 Other operating income: li On trading account (net)............................................................... 2,402i 2,104;, 41: 3,362 2,0081 107! 438| 9421 178! 1,804 Other................................................................................................... 10,597| 27,203j 5,873; 7,875 8,278; 16,513; 23,611! 5,225; 4,484j 9,069| 10,224!! 14,066 Operating expenses—Total.................................................................. 618,470 1,404,094! 534,078! 664.169! 554.888! 890.595 1,564.136! 356,969' 394,7321 570.826. 618.472! 624,858 Salaries and wages of officers and employees............................ 183,943 363,584! 125,614, 153,257! 148,765' 221,660 353,993! 86,671! 84,894| 150,389, 153,213j 170,120 Officer and employee benefits......................................................... 32,643; 64,192; 20,094 22,403 21,628 31,614 53,429! 12,028j 13,822; 19,662! 19,867; 23,527 Interest paid on: Time and savings deposits........................................................... 193,896 583,203 259,449 309,177, 221,191 346,994 768,464! 162,615 202,991! 230,325 247,826: 244,034 Federal funds purchased and securities sold with repur chase agreement..................................................................... 15,831 32.458 2,104 5,103 7.607 18,236 15,683 2,237 3,472, 8,406: 9,150 10,600 O Ca th p e it r a l b o n r o r t o e w s e a d n d m d o e n b e e y n .. t .. u .. r .. e .. s .. , . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1 , , 4 8 2 8 9 9 5 5 , ,5 85 2 2 7 9 5 8 9 8 7 8 8 1 7 4 0 i ,t 4 > 5 3 0 2 2 1 . , 2 8 9 73 6 5 3, .5 4 9 1 4 2 4 7 5 18 0 1,0 6 5 2 0 6 21,,810092: 1,4 9 8 5 2 0 3 2 , , 7 9 5 7 3 0 Occupancy expense of bank premises, net.................................. 37,212' 77,373; 23,692 27,620 25,049 38.207! 67,933 15,643! 14.530! 24,869! 29,49H 33,847 Furniture, equipment, etc................................................................ 26,832, 47,266 18,448 24,860 21,912 37,896 55,191; 14,020; 14,095; 22,635; 24,111 23,877 Provision for loan losses.................................................................. 15,513 28.705 7,372 14,551 13,175, 30,449! 33,594! 9,430| 6,161i 18,336 29,667 16,684 Other operating expenses................................................................. 105,282; 195,931] 75,721| 105,514!I 93,480!! 155,371! 206,842! 53,157' 53,091i 92,295 102,717! 95,446 Income before income taxes and securities gains or losses. 166,789 377,888; 157,712' 182,214 154,447! 240,949! 372,149; 106,754| 92,645; 179,027 164,454! 125,824 Applicable income taxes....................................................... 51,684 90,436’ 41,242| 44,407 47,28?' 66,967! 102,027; 30,350; 26,463; 56,710 46,4411 39,562 I N n e c t o m sec e u b r e it f i o e r s e g s a e i c n u s r o it r i e l s o s g s a e i s n s ( — or ) l a o f s te s r e s t . a .. x .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115 -6 ,1 5 0 8 5 ! ! 2 - 8 7 7 ,5 ,4 8 5 0 2 ; ' 1 -1 16 ,3 ,4 2 7 9 0 ! ! 137,8 1 0 3 6 5 1 -2 07 ,2 ,1 5 6 5 0: , 173,98 8 2 3 ! ; 27 2 0, , 1 5 2 9 2 1 ! 76 1 , , 4 4 0 41 4 ; ' 66 — ,1 4 8 8 2 0 ! , 122,3 7 1 0 7 8! ' 118,-02113;! 86,2 8 6 4 1 1 E Le x s tr s a m or in d o in r a it r y y i c n h te a r r e g s e t s i n ( — co ) n o s r o l c i r d e a d t i e t d s a su ft b er s id ta ia x r e i s e . s .. . . . . . . . . . . . . . . . . . -265 794 620 .......... 2 .. 3 .. 3 . i . -433 679! -8 1 9 8 6198!i 8401! 729 4 ! ! -73 1,3961 Net income..................................................................................... 114,180; 280,665 115,760; 138,175; 104,471 174.745; 272,606! 77,896 66.540 123,750| 117,917! 88,497 Cash dividends declared: On common stock.... 57,254 114,921 48,060 45,427; 39; On preferred stock... 38! 8! 41 362 . Memoranda items: Income taxes applicable to 1970 operating income. , ,.......... 51,684; 90,436; 41,242; 44,407; Tax effect of: Net securities gains or losses ( ), etc...................................... -663! -9,100 -1,415! -714| Transfers—Capital accounts to IRS loan loss reserves2. . . -4,858 - 8,738 -1,898 2,S89. Total provision for intotut taxes, 1970........................................... 46,161 72,597 37,928 40,803 Federal.............................................................................................. 33,523 59,053! 37,118 40,768i State and local................................................................................ 12,638 13,545! 810! 35; 0 • ^4 • >K • 51,,939, 84,27638:!, 21,886; 23,414, 39,146; 36,4868 , 29,26212 25! 315; 1 ! 47.,287 j 66,,967! 30,350; 26,463! 56,710! 46,44lj 39,562 _2,640! -1.,087! 90 5371 — 391 i -6021 177, 630 •3!,807 4!,127. 7,121 - 1,029 1,790 - 814! -2,376! -3,450 40,,838 01,,752i 94,996 29,858 24,282 55,293i 44,241 36,742 39 1 !, ,6 1 5 8 0 8 ! 59 2 ! . , , 5 2 0 4 5 7 : 8 8 6 , , 2 7 2 6 8 7 28 1 , , 8 0 2 3 0 8 ; ! 1 4 9 , , 9 3 3 4 9 3 ; i 5 5 0 , , 0 2 3 5 8 6 ! 43,9 3 3 07 4 ^ 3 5 1 , , 0 66 8 3 0 A 100 MEMBER BANKS, 1970 m JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Memoranda items (cont.): Occupancy expense of bank premises, gross..................... 42,723 84,242 26,534 33,069; 30,033 49,070: 83,525, 17,379i 17,657j 30,454; 39,828 39,642 Rental income from bank premises................................. 5,512 6,870 2,843, 5,449! 4,983! 10,863! 15,592' 1,736! 3,127i 5,585! 10,338 5,795 Net securities gains or losses ( -) before income taxes... -1,471! -16,226 -2,947| -696! — 4,6771 -1,146! 2,839 1,912252 -7691 680! 24 1,492 Extraordinary charges ( —) or credits before income tax. -116 339 822! 350 -651 822! -247 737 153 56 1,374 | Reserves for losses on loans:3 Balance at beginning of year................................................ 127,539 311,7831 117,570 121,5321 103,284 152,252 321,130 63,955 77,917 \ 95,812] 118,825 101,757 Additions due to mergers and absorptions................. 851' 6,042| 3,9491 1,286! 1,225! 34 j 467 i 171 165! 112 531 Recoveries credited to reserves...................................... 6,631! 10,704! 3,513! 7,427! 5,760 12,624! 16,047! 3,489 2,776! 9,872! * i 3 ^ 492 8,959 Transfers to reserves......................................................... 25,277 47,290: 13,395 22,423! 20,833: 43.741: 50,763! 14,872 ll,166j 23,432! 41,7511 26,734 Losses charged to reserves.............................................. 28,716! 50,253 12,193 24,185: 22,769! 46,961 55,758) 14,245 10,647! 28,422! 50,2091 32.109 Ba T la r n a c n e s f a e t r s e n fr d o o m f y r e es a e r r . v .. e .. s . * .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131,1 47 0 7 4 1 323 2 , , 4 0 8 8 2 4 1 ! 125, 6 6 0 2 9 5 \ 12 1 7 , , 2 2 3 4 4 9 ! . 108,0 2 8 4 6 8 1 ! 160 1 , , 2 4 7 1 4 6 , 32 2 9 , , 8 8 2 2 2 8 ! \ 67,5 6 8 6 2 0 80,7 5 8 8 9 9! \ 100,2 5 2 7 9 7 1 ! 123,0 7 6 9 3 5 ] , 10 1 4 , , 6 2 0 7 1 2 Net loan losses (—) or recoveries 4....................................... -22,123 39,549| — 8,6751 17,140 17,028; -34,650! 39,937: -10,833 7,898] -19,684! -37,810| -23,348 Reserves on securities: Ba A la d n d c i e t i a o t n b s e d g u in e n t in o g m o e f r y g e e a rs r .. a .. n .. d .. .. a .. b .. s .. o .. r .. p ... t . i .. o .. n .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1>591I 3,94139\ i 1,105 8: 8,27 3 9 2 \ . 5,267\ ...... 6 .. , . 9 ... 2 .. 7 .1 \ 13,263\ 4,24150 1,893^ 2,756 10,9 6 1 00 5\ 3,421 Recoveries credited to reserves...................................... 171; 79 i 13: 12; 1! 12, 78! 123 15! 46 36 ...........57 Transfers to reserves......................................................... 283 417; 78 1.254 522: 1,631! 1,292 967 401 371 4,712: 1,398 L Tr o a s n se s s fe c r h s a f r r g o e m d r to e s r e e r s v e e r s v .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20126; 2 2 6 5 8 8 ! i 142 2 ; 9 1 9 7 5 5' 40 1 9 6' 809 9! 1,8 1 7 5 8 3 1 7 3 5 0 ! 38 1 6 9 : 4 3 0 4 1,6 6 5 6 5 5 1 ! ........2 Balance at end of year........................................................... 1,827 3,932 1,060 8,407\ 5,365\ 7,753 12,601j 5,140 1,904\ 3,100\ I 13,9421 I 4,873 Total net changes in capital accounts............................................. 66,705 211,809 7/9,369i 114,339 78,597\ 146,883 212,783 56,662 48,041j 97,557! 84,548 74,729 Net income transferred to undivided profits......................... 114,180! 280,665 115,760 138,175 104,471 174,745 272,606! 77,896 66,540; 123,750! 117,917 88,497 Common stock sold (net)........................................................... 1,385' 4,232 5,659: 4,394: 3,241 10,178! 5,369; -13 1,153! 1,770 6,703 2,820 Preferred stock, capital notes, and debentures sold............. 6,270 5,192 1,169! 1,140 3,838; 11,251: 2,015 3,603; 3,424, 2,568 6,650 Premium received on new capital stock sold......................... 2,988 9,365i i2^987, 8,995; 5,142 21,694! 8,321 2,360 1,138 i 2,956, 7,156 15,511 Transfers from loan and securities reserves........................... 679 2,352 7511 2,228! 657 2,224! 4,7001 790 974! 617! 2,450 1,603 D O i t v h i e d r e n in d c s r e d a e s c e l s a . r .. e .. d .. . . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . .. .. . . . . . . . . .. .. . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . . . . . . . . . . . . . .. .. . . . 5 1 7 0 , , 2 92 9 9 2 1 5 1 7 4 , , 8 9 7 2 0 8 ! ! 4 4 7 8 , , 3 1 3 0 1 0 1 | 4 20 5 , , 5 7 5 8 5 9 ^ ! 3 1 9 6 , , 0 5 4 9 2 6 5 1 1 4, , 3 9 7 3 3 9 ! 2 8 9 4 . , 6 3 4 4 9 1 ! i 2110,,868067 23 7. , 3 4 6 4 6 0 : 3 1 9 8 , . 4 5 6 2 1 8 2 3 1 6, , 4 7 9 8 3 6 2 1 9 2 , , 2 7 8 1 3 8 Transfers to loan and security reserves (net of tax effect). 5,189 10,264! 4,203 6,237! 4,373 10,796 11,689' 5,378 3,615 4,654 14,419 7,998 Other decreases.............................................................................. 7,245 22,673!| 10,816: 9,150i 9,235 17,435 23,081- 9,728 5,678 15,273 23,119 15,790 As L se o t a s, n s d e g p r o o s s i s t s, ( i a n n c d lu c d a in p g it a F l e a d c e c r o a u l n t f s u : nds sold and resale pur ! U.S. c T h r a e s a e s s u ) r .. y .. .. s . e .. c .. u .. r .. i . t .. i . e .. s .. . 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,8 9 5 0 3 4 1 2 6 , , 6 1 8 9 1 3 6 1 , , 3 3 8 7 7 0 2 7 , , 1 52 2 9 0 6 1 , , 1 2 1 1 9 7 2 8 , ,9 0 5 9 8 0 1 4 6 , , 4 5 2 9 9 6 3 1 , , 8 25 8 1 2 4 1 , , 2 1 2 4 3 0 6 1 , , 1 67 1 1 9 ! | 6 i; , , , 3 51 7 3 5 6 1 , , 3 0 3 0 9 8 Other U.S. Govt securities (agencies and corps) 1................... 98 451 273 255 335 570 1,004 304 248 277! 384 246 A O l b l li o g t a h t e i r o n s s e c o u f r i S t t ie a s t e 1 s .. a .. n .. d .. .. p .. o .. l . i .. t . i . c .. a .. l . .. s .. u .. b .. d ... i . v .. i . s .. i . o .. n .. s .. .. 1 .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,64 4 1 5 4,7 1 1 2 8 5 1,60 8 6 4 2,02 4 6 8 1,32 4 7 0 2,39 4 7 7 4,0 1 8 9 7 0 98 3 1 2 99210 1,44 2 6 9 ; 1,,59 48 7 1,19 2 3 5 Cash assets......................................................................................... 1,749 3,517 1,306! 1,699 1,462 2,884 3,845 1,137 937 1,909 2.,252 1,344 Total assets 5..................................................................................... 11,650 28,442 11,2871 13,982 10,861 17,523 30,934 7,769 7,742 11,761 12!,557j 10,607 Time and savings deposits............................................................. 4,182 12,767 5,783 j 7,144 4,751 7,188 16,354 3,442 4,168 4,785 4,.963! 5,090 Total deposits..................................................................................... 9,797 24,526 9,878j 12,295 9,398 15,322 27,446 6,916 6,878 10,320 ll!,090!! 9,240 Total capital accounts plus total reserves.................................. 1,078 2,514 1,041! 1,254 950 1,488 2,511 689 614 1,074 i;,091; 842 Equity capital plus total reserves.................................................. 1,044 2,403 1,029; 1,238 942 1,454 2,456! 680 596 1,059 i;,074, 782 Number of officers and employees................................................... Number of banks.................................................................................. 1 Excluding trading account securities. banks not on a reserve accounting method and the excess of cluded in the time deposit figures used in this table. The 2 Prior to 1969 transfers to IRS reserve for bad debt losses losses charged against reserve for losses on loans over re number of officers and employees is as of the end of year. on loans were deducted from operating income; beginning coveries credited to these reserves for banks on a reserve Cash assets comprise cash, balances with other banks (in in 1969, within prescribed limits, banks may deduct all or accounting method. cluding reserve balances), and cash items in process of col part of the transfers to this reserve from income and treat 5 Including trading account securities. lection. Equity capital and reserves include common and the balance, if any, as a transfer from capital accounts. (These Note.—Figures exclude one member bank located outside preferred stock, surplus, undivided profits plus reserves transfers are exempt from Federal income taxes.) the continental United States. Balance sheet figures shown for contingencies, other capital reserves, and reserves on 3 Includes reserve for bad debt losses and other reserves on were obtained by averaging the amounts shown in each bank’s loans and securities. Total capital accounts include equity loans. official condition reports submitted for December 31, 1969, capital and capital notes and debentures. Details may not 4 Sum of the expense item “provision for loan losses” for June 30 and December 31, 1970. Savings deposits are in add to totals because of rounding. JUNE 1971 c MEMBER BANKS, 1970 A 101 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME, EXPENSES, AND DIVIDENDS, BY SIZE OF BANK (Amounts in thousands of dollars) Size group—Total deposits (in thousands of dollars) Item Total i 2,000- Le2s,s0 0th0an 5,000 5 1 , 0 0 ,0 0 0 0 0 - 1 2 0 5 , , G 0 O 0 O 0 - 2 5 5 0 , , 0 0 0 0 0 0 - 5 10 0 0 ,0 ,0 0 0 0 0 - 1 5 0 0 0 0 , , 0 0 0 0 0 0 - 5 o 0 r 0 m ,0 o 0 r 0 e - Operating income—Total........................................................................ 27,906,437 32,066 196,079 687,379 1,848,123 1,801,784 1,716,143 5,250,063 16,374,801 Loans: Interest and fees................................................................................ 18,702,956 111,947 409,597 1,132,239 1,134,316 1,100,839 3,468,149 11,337,674 Federal funds sold and securities purchased with resale agreement................................................................................... 780,353 784 9,692 31,955 81,124 66,431 55,242 161,826 373,300 Securities—Interest and dividends:2 U.S. Treasury securities.................................................................. 2,206,608 3,938 39,238 108,720 249,433 197,825 183,133 438,336 985,987 Other U.S. Govt, securities (agencies and corporations) 414,103 658 11,055 32,043 67,811 63,102 45,908 75,538 117,989 Obligations of States and political subdivisions..................... 2,090,262 375 9,439 49,086 160,741 164,603 155,032 441,020 1,109,967 All other securities........................................................................... 118,338 107 984 2,760 7,356 7,399 6,808 21,551 71,373 Trust department income.................................................................... 1,074,623 16,791 188 904 8,429 25,316 36,706 202,964 783,325 Service charges on deposit accounts................................................ 867,305 599 7,953 32,976 89,057 84,323 68,990 189,838 393,570 Other charges, fees, etc........................................................................ 681,094 297 3,529 12,601 33,149 37,595 40,244 149,785 403,894 Other operating income: On trading account (net)................................................................ 345,858 1 88 67 584 18,425 326,693 Other..................................................................................................... 624,937 321 2,055 6,736 18,696 20,808 22,656 82,633 471,031 Operating expenses—Total...................................................................... 22,184,720 22,573 154,008 543,449 1,463,857 1,431,789 1,369,245 4,138,321 13,061,478 Salaries and wages of officers and employees................................ 5,279,546 11,356 45,461 142,011 352,111 347,902 330,827 1,058,203 2,991,675 Officer and employee benefits............................................................ 875,289 1,304 4,330 16,620 46,862 51,177 49,332 171,085 534,579 Interest paid on: Time and savings deposits............................................................. 8,187,539 3,268 63,404 238,524 670,744 638,060 608,071 1,577,213 4,388,256 Federal funds purchased and securities sold with repurchase agreement....................................................................................... 1,365,386 58 726 4,251 8,019 17,931 175,289 1,159,111 O Ca th p e it r a b l o n r o r t o e w s e a d n d m d o e n b e e y n .. t . u ... r .. e .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 9 4 0 3 , , 2 9 1 7 5 2 2 23 3 9 8 2 77 0 9 4 2 1 , , 4 4 2 4 6 9 2 3 , , 8 2 6 3 2 4 3 3 , ,2 4 6 13 8 2 1 6 4 , , 6 55 5 8 2 40 6 7 7, , 6 3 8 6 9 6 Occupancy expense of bank premises, net..................................... 1,011,971 1,014 5,930 21,692 63,552 65,269 64,520 201,762 588,232 Furniture, equipment, etc..................................................................... 721,716 502 4,568 17,335 48,881 52,843 52,763 180,760 364,065 Provision for loan losses..................................................................... 534,062 505 5,291 19,216 43,443 35,243 31,699 101,831 296,834 Other operating expenses.................................................................... 3,675,024 4,616 24,689 86,343 230,138 227,179 207,421 630,969 2,263,671 Income before income taxes and securities gains or losses............... 5,721,718 9,493 42,072 143,929 384,266 369,996 346,898 1,111,742 3,313,323 Applicable income taxes...................................................................... 1,775,526 4,146 11,376 39,813 105,692 100,745 94,729 330,833 1,088,193 I N n e c t o m sec e u b r e it f i o e r s e g s a e i c n u s r o it r ie l s o g ss a e in s s ( — or ) l a o f s t s e e r s t .. a .. x ... e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 -1 ,9 0 4 7 6 , , 1 1 0 9 0 2 5, - 3 3 4 3 6 30,6962 104,1 6 1 1 6 6 278, - 5 2 7 5 4 269 - , 5 2 0 5 4 1 25 2 2 , , 7 1 8 6 2 9 7 - 8 8 0 ,3 ,9 7 0 9 9 2 -1 ,2 0 2 1 5 , , 5 1 5 3 5 0 L E e x s tr s a m or in d o in r a it r y y i c n h te a r r e g s e t s i ( n — c ) o n o s r o c li r d e a d t i e ts d a s f u te b r s i t d a i x a e r s ie .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -14,81 3 3 8 -23 -41 318 1 1 3 4 8 8 1,270 2,700 278 1 -19,4 - 9 2 8 Net income................................................................................................... 3,824,238 5,288 30,692 105,049 278,658 270,017 257,651 772,806 2,104,078 Cash dividends declared: On common stock................................................................................. 1,747,883 3,606 8,511 28,428 80,756 84,867 86,038 317,076 1,138,600 On preferred stock................................................................................ 6,158 72 103 91 277 507 5,108 Memoranda items: Income taxes applicable to 1970 operating income..................... 1,775,526 4,146 11,376 39,813 105,692 100,745 94,729 330,833 1,088,193 Tax effect of: Net securities gains or losses ( —), etc.......................................... -140,141 -42 26 -47 -1,453 -2,110 -33 -10,661 -125,815 Transfers—Capital accounts to IRS loan loss reserves 3. . .. -155,278 216 256 -685 -5,782 -6,357 -6,019 -23,683 -113,224 Total provision for income taxes, 1970............................................. 1,480,106 4,320 11,658 39,080 98,456 92,276 88,675 296,488 849,153 Federal................................................................................................. 1,272,344 3,637 10,854 36,205 90,615 85,051 81,842 270,831 693,311 State and local..................................................................................... 207,762 683 805 2,876 7,841 7,225 6,833 25,658 155,842 A 102 MEMBER BANKS, 1970 □ JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Memoranda items (cont.): Occupancy expense of bank premises, gross......................... 1,274,983 75,801 79,634 263,816 755,110 Rental income from bank premises.................................... 263,012 10,532 15,113 62,054 166,878 Net securities gains or losses (—) before income taxes... -2,287 2,837 -18,678 -205,537 Extraordinary charges (—) or credits before income tax. . 942 2,610 -84 -41,332 Reserves for losses on loans:4 Ba A la d n d c i e t i a o t n b s e d g u in e n t i o n g m o e f r y g e e a rs r . a .. n ... d .. . a ... b .. s .. o .. r .. p .. t .. i . o .. n ... s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,09 2 9 8 , , 2 39 0 9 6 27 2 6 , , 8 0 3 6 8 5 90111,,601142 3,31 1 9 3 , , 3 9 2 7 9 0 Recoveries credited to reserves........................................ 205,013 16,092 41,209 97,499 Transfers to reserves........................................................... 875,301 46,035 160,872 517,372 Losses charged to reserves.................................................. 1,002,783 55,096 186,965 599,603 Transfers from reserves..................................................... 20,224 2.591 3,624 7,951 Balance at end of year............................................................ 5,184,912 283,343 924,119 3,340,615 Net loan losses ( —) or recoveries 5.......................................... -801,400 -39,003 -145,754 -502,103 Reserves on securities: Ba A la d n d c i e t i a o t n b s e d g u in e n t in o g m o e f r y g e e a rs r . a .. n ... d .. . a ... b .. s .. o .. r .. p .. t .. i . o .. n ... s . . .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. .. . . .. . 9.592 39,674 7 48,7838 Recoveries credited to reserves........................................ 145 307 1 Transfers to reserves........................................................... 1,722 7,776 6,749 Losses charged to reserves................................................ 406 312 248 Transfers from reserves...................................................... 1,233 6,259 8,995 Balance at end of year.............................................................. 9,821 41,193 46,297 Total net changes in capital accounts........................................... 2,275,449 214,477 534,129 986,395 Net income transferred to undivided profits......................... 3,824,238 257,651 772,806 2,104,078 Common stock sold (net)........................................................... 38,352 4,171 10,500 2,641 P P r r e e f m er iu re m d r s e to ce c i k v , e c d a o p n it a n l e n w o t c e a s p , i a ta n l d s t d o e c b k e n s t o u l r d e . s . .. s . o ... l . d ... . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 4 1 3 9 , , 1 2 4 5 0 0 1 1 1 0 , , 4 2 9 5 6 2 2241,,102913 4 9 5 0 , ,1 1 0 0 8 0 Transfers from loan and securities reserves........................... 38,856 3,823 9,883 16,947 Other increases.............................................................................. 407,383 36,746 117,633 148,377 Dividends declared....................................................................... 1,754,041 86,315 317,584 1,143,708 Transfers to loan and securities reserves (net of tax effect) 208,077 10,038 43,135 114,063 Other decreases............................................................................. 333,653 13,308 61,189 163,083 Assets, deposits, and capital accounts: Loans gross (includes Federal funds sold and resale purchases) 5,922,844 16,264,947 15,443,371 47,467,218 151,523,149 U.S. Treasury securities2................................................................. 2,019,003 4,766,417 3,502,846 8,485,273 19,396,165 Other U.S. Govt, securities (agencies and corporations)2. . .. 522,245 1,098,370 818,616 1,569,655 2,618,238 Obligations of States and political subdivisions 2.................... 1,287,773 4,168,291 4,025,717 11,778,949 27,978,754 All other securities2.......................................................................... 60,723 151,129 139,769 421,572 1,162,916 Cash assets........................................................................................... 1,559,634 4,046,195 3,999,433 14,889,469 52,475,266 Total assets 6....................................................................................... 11,598,376 31,204,441 28,786,731 87,570,557 273,261,657 Time and savings deposits............................................................... 5,599,383 15,506,330 13,764,583 36,177,346 94,221,769 Total deposits...................................................................................... 10,358,929 27,835,497 25,310,778 75,101,987 216,730,949 Total capital accounts plus total reserves.................................... 1,032,775 2,635,459 2,410,063 7,428,690 22,990,140 Equity capital plus total reserves................................................... 1,028,818 2,609,200 2,350,390 7,166,040 21,570,935 Number of officers and employees 22,009 63,810 51,379 156,537 387,709 Number of banks............................. 1,400 1,768 366 348 115 1 Total is for banks operating during the entire year, except that one bank located outside 5 Net losses on loans is the excess of losses charged against reserve for losses on loans over the continental United States is excluded. recoveries credited to these reserves for banks on the reserve accounting method. 2 Excluding trading account securities. 6 Including trading account securities. 3 Prior to 1969 all transfers to IRS reserve for bad debt losses on loans were deducted from income; beginning in 1969 within prescribed limits, banks may deduct all or part of the trans Note.—The figures for assets, deposits, capital accounts, number of officers and employees, fers to this reserve from income and treat the balance, if any, as a transfer from capital accounts. and number of banks are as of the end of the year. (These transfers are exempt from Federal income taxes.) 4 Includes reserve for bad debt losses and other reserves on loans. Details may not add to totals because of rounding. JUNE 1971 □ MEMBER BANKS, 1970 A 103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME RATIOS BY CLASS OF MEMBER BANK, AND FOR ALL MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Class of bank Federal Reserve district Reserve city All Item member Phila Min Kan San Coun banks Bos New del Cleve Rich At Chi St. neap sas Dal Fran New City of try ton York phia land mond lanta cago Louis olis City las cisco York Chi Other City cago Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1............................................................................ 9.76 9.77 10.80 11.31 10.75 10.68 10.29 11.52 11.25 11.71 11.46 10.36 10.87 11.27 11.03 10.92 10.56 9.03 8.91 10.40 11.35 10.44 10.63 9.69 11.36 10.84 11.50 11.48 10.00 11.00 11.31 11.11 10.96 10.12 5.95 4.82 5.04 4.01 4.79 5.27 5.65 5.31 4.40 4.60 4.10 4.06 3.75 4.32 4.89 4.00 4.80 Percentage of net income: 65.90 54.18 48.46 35.33 45.88 49.64 58.35 46.74 40.60 40.04 35.77 40.64 34.12 38.24 44.07 36.49 47.49 Sources and disposition of income: Percentage of total assets: Total operating expenses................................................. 4.62 5.13 5.18 5.02 5.00 5.44 4.72 4.86 4.78 5.09 5.14 5.01 4.58 4.97 4.76 4.64 5.75 Salaries, wages, and fringe benefits.......................... 1.23 1.16 1.43 1.44 1.38 1.82 1.30 1.41 1.21 1.62 1.51 1.23 1.25 1.24 1.41 1.18 1.64 Interest on time and savings deposits...................... 1.19 1.54 1.90 2.15 1.84 1.40 1.42 1.97 2.03 1.84 1.77 2.11 1.78 2.20 1.72 1.76 2.36 Occupancy expense of bank premises, net............. .22 .21 .22 .23 .22 .29 .23 .22 .19 .25 .21 .21 .19 . 16 .19 . 16 .27 All other operating expenses..................................... 1.98 2.22 1.63 1.20 1.56 1.93 1.77 1.26 1.35 1.38 1.65 1.46 1.36 1.37 1.44 1.54 1.48 Total operating income.................................................... 5.83 6.57 6.46 6.34 6.30 6.90 5.96 6.29 6.22 6.58 6.53 6.24 5.98 6.31 6.25 5.97 6.83 Income after taxes and before securities gains .79 .94 .86 .95 .88 .95 .84 1.01 1.07 .99 .96 .84 .95 .87 .99 .92 .74 Net income.......................................................................... .73 .86 .83 .95 .86 .95 .79 .99 1.03 .97 .96 .81 .96 .88 1.00 .93 .71 Percentage of total operating income: Interest, fees, and other loan income2........................ 70.69 68.98 71.94 67.49 69.81 69.22 70.31 71.36 68.33 70.23 68.13 68.42 67.36 67.81 67.77 70.86 72.15 Securities—Interest and dividends:3 U.S. Treasury securities.............................................. 5.44 6.62 6.42 10.58 7.91 6.58 6.07 8.21 10.31 8.80 8.79 9.73 11.80 9.86 10.57 7.92 5.97 Other U.S. Govt, securities (agencies and cor porations) ................................................................... .70 .63 .74 2.63 1.48 .86 .89 1.39 1.19 2.06 2.26 1.97 2.39 2.42 1.73 2.04 1.24 Obligations of States and political subdivisions. . 5.78 6.47 6.89 8.94 7.48 7.29 7.23 7.46 9.83 7.48 7.86 7.82 7.34 7.39 7.06 8.49 6.27 All other securities........................................................ .51 .45 .41 .38 .42 .29 .49 .54 .42 .24 . 39 .49 .36 .20 .54 . 35 . 36 Service charges on deposit accounts............................ 1.29 .47 3.12 4.22 3.10 3.11 2.09 2.72 2.59 3.92 4.47 2.32 2.96 3.67 4.08 3.45 4.50 Trust department income............................................... 6.57 6.44 4.03 2.13 3.84 7.04 5.47 4.41 3.69 2.80 2.53 3.62 2.36 2.37 2.92 2.61 2.52 All other operating income............................................. 9.02 9.94 6.45 3.63 5.96 5.61 7.45 3.91 3.64 4.47 5.57 5.63 5.43 6.28 5.33 4.28 6.99 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 17.69 14.68 19.08 19.80 18.92 22.53 18.38 18.74 17.00 21.44 20.08 16.93 18.16 16.96 19.96 17.35 20.86 3.42 3.08 3.13 3.01 3.13 3.85 3.45 3.64 2.50 3.28 3.05 2.87 2.85 2.79 2.66 2.42 3.24 Interest on: Time and savings deposits......................................... 20.44 23.45 29.51 33.91 29.33 20.34 23.93 31.41 32.77 27.98 27.21 33.83 29.86 34.91 27.52 29.59 34.69 Oc C cu a p p a it n a c l y n e o x te p s e n a s n e d o d f e b b a e n n k tu p r r es e . m .... i . s .. e . s .. , . .. n .. e ... t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 2 . . . 8 2 5 1 3 0 1 3 3 . . . 2 1 9 9 7 8 8 3. . . 4 1 3 5 2 8 3 1 . . . 7 4 1 5 3 9 6 3 . . . 4 6 3 8 2 2 6 4 . . . 7 3 2 7 3 9 9 3 . . . 6 4 9 5 2 4 4 3 . . . 5 5 4 3 5 2 4 3 . . . 1 0 1 8 7 7 2 3 . . . 6 8 2 9 2 6 5 3. . . 3 2 2 1 7 0 6 3 . . . 7 4 2 1 5 9 5 3 . . . 4 2 2 2 6 9 2 5 . . . 6 4 2 7 8 4 3 3 . . . 9 0 21 8 6 7 2 . . . 3 7 1 1 7 2 4 5. . . 3 0 3 1 3 2 All other operating expenses......................................... 19 1 . . 5 5 1 9 1 2 7 . . 4 0 0 6 1 1 4. . 6 9 7 0 j ! 1 2 5 . . 0 0 1 3 1 1 5 . . 9 8 1 0 1 1 8 . . 8 8 8 4 1 1 7 . . 6 8 1 4 1 1 3 . . 3 4 9 9 1 1 5. . 7 5 3 4 16 1 . . 4 6 1 1 1 2 6 . . 8 7 1 0 1 2 4 . . 1 0 1 9 1 2 4 . . 0 6 8 4 1 1 4 . . 2 6 1 0 1 2 6 . . 4 4 4 0 1 2 5 . . 9 1 4 8 13 1 . . 9 8 5 8 Total operating expenses.................................... 79.19 78.11 80.24; 79.13 79.51 78.83 79.22 77.17 76.96 77.49 78.63 80.28 76.56 78.86 76.23 77.68 84.28 Income before taxes and securities gains (losses). .. 20.81 21.89 19.76 20.87 20.49 21.17 20.78 22.83 23.04 22.51 21.37 19.72 23.44 21.14 23.77 22.32 15.72 Income after taxes and before securities gains Ne ( t l o s s e s c e u s r ) i . t .. i . e .. s . .. g .. a .. i . n ... s . .. o .. r .. . l .. o .. s .. s . e .. s .. .. ( .. — ... ) .. , . . a .. f .. t . e .. r .. . t .. a .. x ... e .. s .. . . . . . . . . . . . . . . . . . . . . . - 1 1 3 .0 .5 7 7 - 1 1 4 . . 1 4 0 3 1 - 3 .3 .3 1 5 1 - 5 .0 .0 6 8 1 - 4 .3 .1 9 3 1 - 3 .0 .8 5 3 1 - 4 .8 .1 9 7 1 - 6 .2 .1 8 0 1 - 7 .6 .2 4 1 1 - 5 .2 .1 3 3 1 - 4 .0 .8 7 6 1 - 3 .4 .5 7 9 15 . . 0 9 4 4 1 - 4 .1 .0 5 1 15. . 9 0 1 6 15 . . 0 6 0 4 1 — 0 . . 0 8 5 7 All other income (net)...................................................... .05 -.18 -.19 .04 -.05 -.02 .05 .04 .02 -.05 .00 -.05 .11 .11 .04 — .04 — .39 Net income......................................................................... 12.55 13.15 12.85 15.06 13.69 13.76 13.33 15.86 16.59 14.85 14.79 13.07 16.09 13.97 16.01 15.60 10.43 1 A 104 MEMBER BANKS, 1970 □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Rates of return (per cent): On U s . e S c . u T ri r t e ie a s s — ur I y n s te e r c e u s r t i a ti n e d s. . d .. i . v .. i . d .. e .. n .. d ... s . . : .. 3 .................. 6.00 5.97 5.59 5.53 5.62 5.82 5.71 5.57 5.66 5.85 5.57 5.64 5.74 5.33 5.67 5.43 5.41 O O A t l b p h l l o e i o g r r t a h a U t e t i i r o . o S n s n . s e s c G ) o u . o . f r . . v i S .. t t . t i , . a e .. s s t .. e e . . . s . c . . . u . . . a . . r . . . n . i . . t . d . . i . . . e . . . p s . . . . o . . . ( . . l . a . i . . . t g . . . i . e . c . . . n . a .. c . . l . . i . . . e s . . . s u . . . . . b . a . . . . d n .. i d . v .. i . c s .. i o o r n s 6 4 7 . . . 8 5 8 7 6 0 4 7 5 . . . 3 9 9 5 3 6 6 4 6 . . . 1 1 2 5 9 2 4 6 5 . . . 5 8 1 8 3 4 4 6 6 . . . 2 5 3 5 3 0 4 5 6 . . . 1 4 9 5 8 7 4 7 6 . . . 4 5 2 1 5 5 6 6 3 . . . 5 0 9 2 2 0 4 6 6 . . . 6 2 3 1 2 0 4 6 5. . . 0 7 1 1 3 0 4 7 6 . . . 2 1 6 8 7 2 4 6 5 . . . 2 7 8 4 0 4 5 6 3 . . . 0 3 9 3 7 6 4 6 5 . . . 1 6 4 5 3 2 4 6 5 . . . 0 6 2 2 2 0 4 6 5 . . . 1 5 5 8 3 6 4 6 6 . . . 7 1 2 5 0 4 On I N n l e o te t a r l n e o s s a t : , n 2 f l e o e s s s , e a s n ( d — o ) t h o e r r r l e o c a o n v e i r n i c es o 4 m ... e .. . . . . . . . . . . . . . . . . . . . . . - 7 .3 .7 9 3 - 7 .3 .7 8 1 - 8 .3 .1 2 1 - 7 .2 .8 8 3 - 7 .3 .9 2 1 - 8 .3 .3 3 2 - 7 .3 .6 5 9 - 7 .2 .6 1 5 - 7 .2 .6 6 5 - 8 .3 .2 0 4 - 8 .4 .4 7 6 - 7 .2 .6 9 6 - 7 .3 .7 7 2 - 7 .1 .7 7 5 - 8 .3 .0 5 3 - 7 .4 .9 4 8 - 8 .2 .3 7 1 Ratios on selected types of assets: Percentage of total assets: Sec U u . r S i . t i T es r : e 3 asury securities........................................... 5.30 7.28 7.42 12.13 8.86 7.80 6.33 9.28 11.33 9.89 10.32 10.76 12.28 11.67 11.66 8.72 7.52 C G R a e r O O A s a o h t l s l b p l h s e l o a e i o s l g r r s t t o a a s a h a U t e t t e i n e i t r o . o s S s n a n . s 2 . . s . s e s . . . s ) G . c . o . . e u . . . . . o f . t . . r . . . s v . . S i . . . . . . t t . . . . t . i , . . . . a . e . . . . . . . s t s . . . . . . . e e . . . . . . . . . s c . . . . . . . . . . u . . . . . . a . . . . . r . . . . . n . . . . . i . . . . . t . . . d . . . . . i . . . . . . . e . . . . . . . p . . s . . . . . . . . . . o . . . . . . ( . . . . . l . . a . . . i . . . . . . . g t . . . . . . . i . . . e . . . c . . . . . . . n . . . a . . . . . . . . c . . l . . . . . . . . i . . . . . . e s . . . . . . . . . u s . . . . . . . . . . . . b . . . . a . . . . . . . . d . . . n . . . . . . . . . . i d . . . . . v . . . . . . . . . . . . i . . . c . . s . . . . . . . . o i . . . . . . . o . . . r . . . . . . . . n . . . . . . . . . . . . s . . . . . . . . . . 2 5 7 5 3 . . . . . . 0 5 3 4 6 9 2 4 9 9 0 0 5 1 9 8 1 5 . . . . . . 7 7 5 5 6 1 8 2 6 4 4 0 5 1 1 7 8 1 0 . . . . . . 3 2 7 7 4 7 1 1 9 7 3 3 5 1 1 2 4 3 1 3 . . . . . . 5 7 6 4 7 7 1 1 5 3 9 2 5 1 1 5 1 1 1 7 . . . . . . 5 6 4 1 4 7 5 3 3 2 6 2 5 1 1 7 1 7 2 . . . . . . 8 3 0 7 3 1 5 5 9 6 6 2 2 5 9 2 4 1 . . . . . . 4 0 4 8 4 1 7 6 2 2 4 0 5 1 1 8 1 4 1 1 . . . . . . 7 8 3 4 5 9 1 5 9 7 4 9 5 1 1 5 1 1 4 4 . . . . . . 5 3 1 4 1 5 5 9 6 2 2 6 5 1 1 2 6 1 6 1 . . . . . . 0 9 1 3 0 9 1 1 8 2 8 4 5 1 1 2 2 2 8 2 . . . . . . 6 2 4 3 5 0 1 5 3 8 0 0 5 1 1 5 1 1 1 5 . . . . . . 5 7 8 5 2 6 1 5 2 2 0 0 5 1 1 2 2 1 1 8 . . . . . . 2 4 2 5 0 1 6 3 8 9 0 0 5 1 1 2 5 1 1 5 . . . . . . 2 1 5 2 2 0 9 9 9 6 4 7 5 1 1 2 1 1 0 9 . . . . . . 6 6 9 8 7 0 3 5 6 2 6 4 5 1 1 2 2 1 9 2 . . . . . . 2 9 3 8 1 5 8 5 9 8 7 8 5 1 1 2 9 1 0 5 . . . . . . 1 4 2 3 3 0 1 5 9 6 6 8 Pe C L A L R rc o o o e l e l a m a a n n o n l t m a t s s e h g s e t t e t e r o o a r c t o i i f l e a n a o f l d r a l g o m i a r n v a o n s e i s n d d 2 r s s u . s . i . l . . a n . . o . . . . l . d . . a s . . . . . . u . n . . . f . . . s . . o s . . . t . . . : r . r . . . 2 . . . i . . . p a . . . . . . l . e . . . . . r . . . l . . . o s . . . . . . o . . a . . . . n . . n . . . . . . a . . s . . . . l . . . . . . . . . e . . . . . . . . x . . . . . . . . p . . . . . . . . . . e . . . . . . . n . . . . . . . . . . d . . . . . . . . i . . . . . t . . . . . . . u . . . . . . . . r . . . . . . . . e . . . . . . . . s . . . . . . . . . . 2 5 5 8 8 8 . . . . . 1 0 3 4 0 5 7 3 2 3 2 5 7 8 9 4 . . . . . 6 3 4 5 0 1 7 8 4 0 4 2 1 1 0 1 7 1 8 . . . . . 5 9 2 5 7 1 6 3 6 4 2 2 3 1 5 5 8 0 0 . . . . . 1 6 6 3 1 8 8 7 3 4 2 3 1 1 2 1 6 9 9 . . . . . 5 6 1 8 9 1 2 7 0 0 4 2 2 1 2 2 2 2 . . . . . 1 5 3 2 6 1 9 8 6 6 4 2 1 1 9 1 3 5 . . . . . 8 1 6 2 1 1 3 8 6 2 2 2 3 1 6 1 6 3 1 . . . . . 8 7 9 0 4 1 5 8 2 4 2 2 3 1 6 4 4 1 3 . . . . . 0 3 6 1 8 1 5 5 3 6 2 3 3 1 3 0 1 1 3 . . . . . 6 3 3 4 2 9 3 8 0 0 3 3 1 1 3 1 1 5 8 . . . . . 4 3 5 3 2 5 8 8 6 3 2 3 1 1 2 7 6 7 6 . . . . . 4 3 0 8 2 8 6 8 8 0 2 2 3 1 4 3 4 2 4 . . . . . 4 3 7 5 8 5 7 5 6 7 2 2 2 1 9 9 8 2 0 . . . . . 4 0 3 1 95 9 8 8 0 2 2 1 1 1 9 3 5 6 5 . . . . . 4 1 7 1 6 1 5 0 4 0 4 2 2 1 5 0 0 2 1 . . . . . 1 1 8 6 2 5 2 7 6 0 2 3 1 1 7 3 7 8 2 . . . . . 9 7 6 1 4 9 8 6 7 0 Other ratios (per cent): I I T T n n i o t m c s t e a o a r e v m l e i s a n c e t n a g t p d o s a n i x t d s a e a e t l s i v p m a i t o n c o e s g c i s o n a t s u n e d . t n d . e . t . i p . s s n . o . a c . a . s v o . i n . i t . m n . d s .. g e . t r . s . o e . p . d s . l t . e u e . o r . p . s t v . . a o e . i . s l n s . i . c d . t t . s o . o e . m . p t . t . o o . o e . s . t t . i a t . i t . m a l . s . x . . a e . . e . . s . . s . . s a . . . e . . n . . . . t . . d . . . s . . . . . . . 5 . . . . . . . . . . . . . . 2 2 5 8 8 7 . . . . 7 7 1 4 1 2 8 7 3 3 9 5 0 8 . . . . 9 4 3 0 2 5 2 7 4 2 5 8 6 9 . . . . 1 5 2 8 1 1 9 2 2 5 4 8 5 2 . . . . 6 8 6 6 7 5 9 4 4 2 4 8 5 7. . . . 9 9 3 6 1 5 8 6 3 3 4 9 2 6 . . . . 8 3 6 6 5 3 7 6 2 3 5 8 6 4 . . . . 3 7 0 9 5 8 6 8 2 5 4 9 0 7 . . . . 7 0 1 2 1 1 8 3 2 5 4 9 1 2 . . . . 6 7 9 8 2 3 3 0 4 3 4 5 8 0 . . . . 7 6 8 4 5 3 2 8 2 4 4 8 3 7 . . . . 0 8 8 8 1 9 7 3 2 5 4 8 8 2 . . . . 5 8 4 1 1 9 9 6 4 3 4 9 2 0 . . . . 8 8 1 1 9 2 0 7 5 3 4 8 2 1 . . . . 9 0 4 8 3 8 6 9 4 3 4 9 1 1 . . . . 5 8 2 4 1 7 4 7 2 4 5 8 0 8 . . . . 1 8 7 5 6 3 9 2 2 5 5 7 8 5 . . . . 5 1 5 4 1 7 8 4 Number of banks 6.................................................................. 12 9 157 5,589 5,767 231 351 321 470 361 546 943 459 489 807 634 155 For notes see p. A-l 09. JUNE 1971 o MEMBER BANKS, 1970 A 105 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME RATIOS OF RESERVE CITY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item New Phila Cleve Rich St. Minne Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before securities gains (losses)1 10.13 9.75 11.80 11.33 12.09 10.83 9.91 10.53 11.84 10.12 11.00 10.46 Net income............................................................................ 10.13 9.04 11.50 10.63 11.94 10.62 9.10 10.49 11.62 10.07 10.96 9.89 Cash dividends paid............................................................. 4.93 5.94 6.13 4.86 5.08 4.97 4.58 4.36 5.14 7.02 4.70 5.01 Percentage of net income: Cash dividends paid___ 48.67 65.67 53.33 45.77 42.59 46.79 50.39 41.54 44.23 69.72 42.91 50.74 Sources and disposition of income: Percentage of total assets: 1 Total operating expenses...................................................... 5.66 4.65 5.01 4.81 5.09 5.23 4.97 4.56 4.71 4.61 4.31 5.73 Salaries, wages, and fringe benefits............................... 1.76 1.23 1.55 1.18 1.68 1.56 1.16 1.24 1.18 1.36 .95 1.61 Interest on time and savings deposits........................... .97 1.23 1.59 1.91 1.64 1.44 1.78 1.44 1.30 1.29 1.53 2.38 Occupancy expense of bank premises, net................... .26 .22 .24 .18 .27 .21 .21 .18 .12 .15 .08 .26 All other operating expenses.......................................... 2.67 1.97 1.63 1.54 1.50 2.02 1.82 1.70 2.11 1.81 1.75 1.48 Total operating income......................................................... 7.17 5.86 6.50 6.34 6.63 6.67 6.22 6.00 6.34 6.03 5.67 6.78 Income after taxes and before securities gains (losses)1 .90 .79 .99 1.13 1.00 .93 .82 .92 .94 .91 .92 .72 Net income.............................................................................. .90 .73 .96 1.06 .99 .91 .75 .91 .93 .91 .92 .68 Percentage of total operating income: Interest, fees, and other loan income2.................................... 67.39 70.84 74.30 70.06 71.08 72.61 70.44 71.70 70.70 71.19 73.72 72.45 Securities—Interest and dividends:3......................................... U.S. Treasury securities........................................................... 6.45 5.49 5.16 ! 7.67 7.91 6.22 7.18 7.83 4.21 6.53 5.52 5.71 Other U.S. Govt, securities (agencies and corporations). .88 .69 .01 .55 1.04 .51 .65 .34 .25 .32 .46 1.08 Obligations of States and political subdivisions............... 4.86 5.86 5.56 9.85 7.35 6.09 7.04 6.16 5.58 5.61 8.84 6.21 All other securities..................................................................... .24 .50 .34 .48 .22 .61 .42 .32 .16 1.16 .42 .40 Service charges on deposit accounts....................................... 1.18 1.37 2.61 2.07 3.93 3.44 1.41 2.56 1.58 1.93 1.32 4.25 Trust department income............................................................. 10.57 6.39 6.12 4.92 3.83 3.48 5.14 3.24 5.59 6.09 4.33 2.67 All other operating income.......................................................... 8.43 8.86 5.90 4.40 4.64 7.04 7.72 7.85 11.93 7.17 5.39 7.23 Total operating income. 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages........................................... 21.15 17.70 19.40 16.22 21.91 20.01 15.76 17.58 15.98 19.79 14.59 20.51 Officer and employee benefits....................... 3.38 3.41 4.48 2.39 3.51 3.46 2.97 3.15 2.71 2.75 2.28 3.26 Interest on: Time and savings deposits........................ 13.57 21.00 24.53 30.09 24.88 21.60 28.74 24.02 20.59 21.39 27.01 35.11 Borrowed money......................................... 13.13 12.13 9.21 6.66 4.04 10.70 11.59 10.78 15.36 8.78 14.78 5.97 Capital notes and debentures................... .39 .50 .74 .22 .46 .44 .39 .50 .30 .35 .13 .31 Occupancy expense of bank premises, net. 3.71 3.81 3.69 2.93 4.10 3.22 3.41 3.13 2.02 2.58 1.52 3.94 Provision for loan losses................................ 1.74 1.61 1.75 1.42 1.38 3.01 2.44 2.15 1.10 2.45 1.88 1.81 All other operating expenses........................ 21.87 19.20 13.34 15.96 16.49 16.06 14.54 14.78 16.26 18.33 13.83 13.57 Total operating expenses. 78.94 79.36 77.14 75.89 76.77 78.50 79.84 76.09 74.32 76.42 76.02 84.48 Income before taxes and securities gains (losses)......... 21.06 20.64 22.86 24.11 23.23 21.50 20.16 23.91 25.68 23.58 23.98 15.52 Income after taxes and before securities gains (losses). 12.54 13.51 15.27 17.88 15.16 14.02 13.28 15.35 14.94 15.16 16.35 10.75 Net securities gains or losses (—), after taxes............... — 1.03 — .38 — 1.13 —. 15 —. 18 — .99 — .28 — .28 — .03 .01 -.08 All other income (net)......................................................... .05 *00 .03 — !o4 — !o9 —; io .25 !oo — .05 — .08 -.51 Net income............................................................................ 12.54 12.53 14.89 16.78 14.97 13.75 12.19 15.30 14.66 15.08 16.28 10.16 A 106 MEMBER BANKS, 1970 □JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Rates of return: On securities—Interest and dividends :3 O U t .S h . e r T U re . a S s . u G ry o s v e t c , u se r c it u i r e i s t . i . e .. s .. . ( . a ... g .. e .. n .. c .. i . e .. s . .. a .. n .. d .. .. c .. o .. r .. p ... s .. . . ) . . . . .. . . . . 7 5 . . 3 86 0 6 6. . 8 0 6 0 5 1 . . 7 7 3 4 5 5. . 8 7 1 4 6 7 . . 0 2 9 5 6 5 . . 6 4 4 4 6 5 . . 8 8 0 0 4 5 . . 9 8 9 8 4 5 . . 3 19 0 6 5 . . 0 6 8 0 5 5 . . 0 3 7 7 6 5. . 4 2 1 2 Obligations of States and political subdivisions......... 3.93 4.74 3.88 4.27 4.14 4.42 4.29 3.95 4.38 3.97 4.34 4.08 All other securities............................................................. 5.05 7.50 6.12 6.44 5.31 8.23 5.83 4.19 4.96 5.03 6.13 7.00 On I n lo te a r n e s st : , 2 fees, and other loan income........................... 8.79 7.74 7.89 7.82 8.45 8.79 7.61 7.86 7.94 7.94 7.70 8.30 Net loan losses (—) or recoveries4................................ -.36 -.38 -.29 -.30 -.32 -.62 -.34 -.46 -.16 -.47 -.34 -.25 Ratios on selected types of assets: Percentage of total assets: Secu O U ri t . t S h ie . e s r T : 3 U re . a S s . u G ry o s v e t c , u se r c it u i r e i s t . i . e .. s .. . ( . a .. g ... e .. n .. c .. i . e .. s . .. a .. n .. d .. .. c .. o .. r .. p ... s .. . . ) . . . . 7. . 8 8 8 7 5. . 3 59 6 5. . 8 0 6 6 8. . 4 6 7 0 8. . 6 95 0 7. . 6 51 2 7. . 7 59 0 7. . 9 41 9 5. . 1 3 5 7 7. . 0 3 3 2 6. . 1 4 8 8 7 1 . . 1 1 5 8 Obligations of States and political subdivisions... 8.86 7.24 9.31 14.61 11.75 9.20 10.21 9.34 8.07 8.54 11.55 10.30 G C R a e r A a s o h l s l l s e a o s l s t t o h s a a e t e n e t r s s a . s 2 . e . s . . . c s . . . . e u . . . . t . r . . s . . i . . . t . . . . i . . . . e . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 0 1 5 . . . . 4 3 4 0 5 4 7 0 2 5 5 3 1. . . . 0 6 3 0 1 8 9 7 6 1 1 1 8 . . . . 2 3 3 7 5 8 3 6 5 1 6 1 5 . . . . 4 8 2 72 4 0 7 5 1 5 1 8 . . . . 5 8 7 2 8 9 8 7 2 5 2 2 5 . . . . 6 1 1 5 1 5 4 0 5 1 7 1 7 . . . . 5 4 4 59 6 7 5 5 22 4 1 . . . . 2 3 7 4 1 9 2 6 2 5 1 6 1 . . . . 4 2 4 5 1 3 8 7 2 5 2 4 4 1 . . . . 0 1 1 3 1 9 7 0 2 5 2 1 4 . . . . 4 4 3 2 8 8 9 7 5 1 2 9 5 . . . . 0 2 3 5 1 7 8 4 Pe C L L R rc o o o e e a a m a n n n l t m a s s e g s e t t t e r o o a c t o f i i e a n a f l d r l g o m i a r v a o n i e n s d d r s s u s i . l . a n . . o . . l . d . s . a . . u . . n . . f . s . o . . s t . . r . : r . . . 2 . i . . a p . . . . l . e . . . . r l . . . o s . . . o . a . . . n . . n . . . a . s . . . l . . . . . . . . e . . . . . x . . . . . . . p . . . . . . . e . . . . . n . . . . . . . d . . . . . . t i . . . t . . . . . u . . . . . . r . . . . . . e . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1 8 0 2 . . . . 4 7 0 3 7 4 2 2 5 8 8 7 . . . . 5 8 0 5 9 0 6 6 4 1 1 7 2 6 . . . . 2 0 0 2 1 8 5 6 4 2 1 4 0 8 . . . . 0 4 0 4 9 2 4 2 2 3 1 8 6 9 . . . . 1 4 4 1 9 9 2 6 3 3 1 0 8 2 . . . . 1 3 4 2 3 2 7 2 4 1 1 7 9 1 . . . . 6 3 1 4 2 5 6 4 4 2 1 4 1 3 . . . . 5 3 5 0 3 6 7 2 2 4 1 0 6 5 . . . . 1 0 7 1 5 3 2 2 2 3 1 0 5 6 2 . . . . 9 0 0 5 8 8 2 6 4 1 8 5 5 . . . . 6 4 9 9 1 8 5 5 2 3 1 7 3 9 7 . . . . 7 1 0 0 3 5 9 4 All other loans2................................................................. 18.45 24.99 24.40 17.03 15.74 18.86 21.43 20.52 17.98 25.36 29.01 12.99 Other ratios (per cent): Interest on time and sav. deposits to time and sav. dep. 5.61 5.22 5.16 4.91 4.82 4.98 5.16 5.20 5.23 4.92 5.44 5.21 I T T n i o m c t o a e m l a c e n a t d p a i x t s a a e l s v i a t n c o g c s t n s e d . t e a i p n n o d c s o i r t m e s s e t e o r p v l t e u o s s t a t i o l n d c to o e t m p a o e l s a i t t a s s s x . e . e . t . s . s . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 9 4 8 . . . 7 4 6 1 5 7 2 2 8 8 8 . . . 7 1 6 6 2 2 3 3 9 8 0 . . . 1 7 2 8 4 4 4 2 1 8 1 0 . . . 5 3 2 1 2 6 4 3 0 8 2. . . 6 9 6 1 2 7 3 3 9 5 0 . . . 9 4 9 1 0 2 4 3 8 4 1 . . . 8 8 0 2 0 0 3 3 9 2 4 . . . 3 9 2 7 8 2 4 3 8 0 2 . . . 3 2 4 3 3 2 3 3 9 2 1 . . . 5 9 8 3 5 0 2 3 8 9 5 . . . 7 9 9 9 5 0 2 5 7 8 5 . . . 4 4 5 3 6 0 Number of banks6........................................... 5 15 6 16 15 20 24 15 8 18 17 19 For notes see p. A-109. JUNE 1971 □ MEMBER BANKS, 1970 A 107 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
INCOME RATIOS OF COUNTRY MEMBER BANKS, BY FEDERAL RESERVE DISTRICT (Computed from aggregate dollar amounts; ratios expressed as percentages) Federal Reserve district Item New Phila Cleve Rich St. Minne Kansas San Boston York delphia land mond Atlanta Chicago Louis apolis City Dallas Fran cisco Summary ratios: Percentage of equity capital plus all reserves: Income after taxes and before sec. gains (losses)1.. . 11.01 11.94 11.31 11.13 11.35 11.85 10.90 11.18 11.00 11.52 10.85 11.03 Net income............................................................................ 10.93 11.68 11.25 11.16 11.08 12.01 11.09 11.45 11.16 11.68 10.97 11.32 Cash dividends paid............................................................. 5.48 4.78 4.67 3.69 4.14 3.57 3.43 3.21 3.93 3.72 3.39 3.74 Percentage of net income: Cash dividends paid............................................................. 50.17 40.94 41.55 33.13 37.37 29.72 30.93 28.09 35.22 31.88 30.94 33.08 Sources and disposition of income: Percentage of total assets: Total operating expenses.................................................... 5.30 4.93 4.73 4.75 5.10 5.08 5.05 4.59 5.09 4.85 4.92 5.89 Salaries, wages, and fringe benefits............................. 1.85 1.50 1.29 1.25 1.56 1.47 1.31 1.27 1.27 1.44 1.37 1.82 Interest on time and savings deposits......................... 1.66 2.05 2.29 2.21 2.03 1.98 2.48 2.09 2.62 1.95 1.97 2.30 Occupancy expense of bank premises, net................. .31 .27 .20 .19 .23 .21 .21 .20 .18 .21 .23 .31 All other operating expenses........................................ 1.48 1.11 .95 1.10 1.28 1.42 1.05 1.03 1.02 1.25 1.35 1.46 Total operating income....................................................... 6.74 6.26 6.12 6.05 6.53 6.45 6.25 5.96 6.29 6.37 6.23 7.07 Income after taxes and before sec. gains (losses)1. .98 1.00 1.03 .98 .98 .98 .86 .97 .84 1.03 .92 .81 Net income............................................................................ .98 .98 1.02 .98 .96 .99 .88 1.00 .85 1.05 .93 .83 Percentage of total operating income: Interest, fees, and other loan income2........................... 70.39 68.73 68.75 65.90 69.35 65.37 66.10 63.49 66.46 65.99 68.58 70.65 Securities—Interest and dividends:3............................... U.S. Treasury securities................................................. 6.67 7.82 10.92 14.01 9.71 10.38 12.66 15.34 12.52 12.67 9.84 7.30 Other U.S. Govt, securities (agencies and corps.).. .84 1.48 2.61 2.09 3.10 3.33 3.49 4.23 3.44 2.46 3.31 2.06 Obligations of States and political subdivisions 8.86 11.35 9.14 9.80 7.61 8.95 8.72 8.39 8.25 7.81 8.21 6.61 All other securities........................................................... .32 .45 .72 .34 .26 .25 .57 .40 .22 .22 .30 .15 Service charges on deposit accounts............................... 4.35 4.23 2.82 3.33 3.92 5.10 3.36 3.31 4.66 5.19 5.16 5.78 Trust department income................................................... 4.77 2.73 2.90 1.96 1.74 1.95 1.87 1.57 .85 1.27 1.23 1.77 All other operating income................................................ 3.80 3.21 2.14 2.57 4.31 4.67 3.23 3.27 3.60 4.39 3.37 5.68 Total operating income.......................................... 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Salaries and wages................................................................ 23.42 20.40 18.15 18.10 20.97 20.11 18.28 18.69 17.41 20.05 19.56 22.66 Officer and employee benefits............................................ 4.15 3.60 2.90 2.64 3.04 2.79 2.75 2.59 2.83 2.62 2.53 3.13 Interest on: Time and savings deposits............................................. 24.69 32.72 37.50 36.52 31.18 30.66 39.68 35.06 41.64 30.71 31.65 32.50 Borrowed money.............................................................. 2.70 2.13 .39 .69 1.30 1.81 1.09 .63 .84 1.49 1.35 1.91 Capital notes and debentures........................................ .24 .32 .14 .10 .06 .16 .17 .09 .21 .14 .12 .39 Occupancy expense of bank premises, net..................... 4.73 4.34 3.42 3.26 3.53 3.37 3.50 3.37 2.98 3.31 3.76 4.50 Provision for loan losses..................................................... 1.97 1.61 1.06 1.71 1.85 2.69 1.73 2.03 1.26 2.44 3.78 2.22 All other operating expenses............................................. 16.87 13.68 13.65 15.46 16.30 17.12 13.59 14.52 13.83 15.37 16.25 15.93 Total operating expenses........................................ 78.77 78.80 77.21 78.48 78.23 78.71 80.79 76.98 81.00 76.13 79.00 83.24 Income before taxes and securities gains (losses)......... 21.23 21.20 22.79 21.52 21.77 21.29 19.21 23.02 19.00 23.87 21.00 16.76 Income after taxes and before securities gains (losses) 14.65 16.13 16.83 16.28 15.10 15.37 13.95 16.47 13.57 16.31 15.07 11.49 Net securities gains or losses (—), after taxes............... -.08 -.42 -.18 .02 -.32 .01 .12 .31 -.09 .10 -.01 .11 All other income (net)......................................................... -.03 .04 .08 .02 -.06 .06 .00 .01 .17 .09 .00 .18 Net income............................................................................. 14.54 15.75 16.73 16.32 14.72 15.44 14.07 16.79 13.65 16.50 15.06 11.78 A 108 MEMBER BANKS, 1970 □ JUNE 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Rates of return: 1 On securities—Interest and dividends :3 U.S. Treasury securities................................................... 5.80 5.20 5.51 5.59 5.66 5.62 5.53 5.68 5.35 5.68 5.60 5.44 Other U.S. Govt, securities (agencies and corps.)___ 6.78 5.87 6.63 6.96 6.57 6.62 6.73 6.45 6.78 6.66 6.75 6.30 Obligations of States and political subdivisions......... 4.24 4.28 3.93 4.09 4.07 4.23 4.13 3.96 4.05 4.05 4.02 4.16 All other securities............................................................ 5.70 6.53 5.95 6.10 4.77 5.99 5.84 5.95 5.60 5.73 4.99 4.55 On loans:2 Interest, fees, and other loan income........................... 8.06 7.56 7.44 7.40 8.04 8.25 7.71 7.58 7.67 8.08 8.24 8.36 Net loan losses (—) or recoveries4................................ -.32 -.24 -.13 -.21 -.27 -.37 -.23 -.27 -.18 -.28 -.53 -.36 Ratios on selected types of assets: Percentage of total assets: Securities:3 U.S. Treasury securities............................................... 7.75 9.42 12.13 15.15 11.20 11.92 14.31 16.09 14.71 14.21 10.94 9.50 Other U.S. Govt, securities (agencies and corps.).. .84 1.58 2.41 1.82 3.08 3.25 3.24 3.91 3.19 2.35 3.06 2.32 Obligations of States and political subdivisions... 14.08 16.58 14.23 14.48 12.21 13.67 13.21 12.62 12.80 12.29 12.72 11.24 All other securities........................................................ .38 .43 .74 .34 .36 .26 .61 .41 .25 .25 .38 .23 Gross loans2....................................................................... 58.83 56.93 56.58 53.84 56.33 51.12 53.65 49.96 54.54 52.02 51.86 59.75 Cash assets.......................................................................... 15.01 12.36 11.56 12.15 13.45 16.45 12.43 14.62 12.09 16.23 17.93 12.66 Real estate assets............................................................... 1.93 1.49 1.61 1.57 2.23 2.25 1.57 1.60 1.60 1.71 2.10 2.32 Percentage of gross loans:2 Commercial and industrial loans................................... 31.63 26.56 21.14 19.56 24.29 30.31 21.77 21.06 21.33 25.60 36.45 28.67 Loans to farmers............................................................... .44 .87 2.00 2.39 2.35 1.97 5.14 8.25 15.90 20.86 9.00 7.08 Real estate loans................................................................ 30.48 34.12 39.87 35.20 28.24 22.09 37.55 33.39 34.49 17.33 13.63 29.38 Loans to individuals for personal expenditures.......... 28.01 26.72 27.02 33.47 34.22 32.53 25.85 27.90 23.03 25.32 27.94 27.09 All other loans 2................................................................. 9.44 11.73 9.97 9.38 10.90 13.10 9.69 9.40 5.25 10.89 12.98 7.78 Other ratios (per cent): Interest on time and sav. deposits to time and sav. dep. 4.63 4.56 4.48 4.32 4.65 4.82 4.69 4.72 4.87 4.81 4.99 4.79 Income taxes to net income plus income taxes............... 28.78 20.55 24.67 22.79 28.10 26.11 25.84 27.70 26.73 30.88 27.28 29.33 Time and savings deposits to total deposits..................... 42.68 52.05 58.54 58.10 50.55 46.91 59.58 49.76 60.59 46.36 44.74 55.08 Total capital accts. and reserves to total assets5............ 9.25 8.83 9.22 8.96 8.74 8.48 8.11 8.86 7.93 9.13 8.68 7.93 Number of banks6....................................................................... 226 336 315 454 346 526 919 444 481 789 617 136 1 Excludes minority interest in operating income, if any. 5 Includes capital notes and debentures and all valuation equally important influence on the result. In the ratios based 2 Loans include Federal funds sold and securities purchased reserves. on aggregates presented here, the experience of those banks in under agreements to resell. 6 Excludes one member bank located outside the continental each group whose figures are largest have a much greater in 3 Excludes trading-account securities. United States. fluence than that of the many banks with smaller figures. 4 Net losses on loans is the sum of the expense item “pro Note.—The ratios in this and the preceding two tables were Ratios based on aggregates show combined results for the vision for loan losses” for banks not on a reserve accounting computed from the dollar aggregates shown in preceding banking system as a whole, and, broadly speaking, are the method plus the excess of losses charged against reserves for tables. Many of these ratios vary substantially from the aver more significant for purposes of general analyses of credit losses on loans over recoveries credited to these reserves for age of individual bank ratios, (which will be published in a and monetary problems, while averages of individual ratios banks on a reserve accounting method. subsequent issue) in which each bank’s figures—regardless of are useful primarily to those interested in studying the financial size or amount—are weighted equally and in general have an results of operations of individual banks. JUNE 1971 □ MEMBER BANKS, 1970 A 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 110 BANK HOLDING COMPANIES □ JUNE 1971 BANK HOLDING COMPANIES, DECEMBER 31, 1970 (■Registered pursuant to Section 5, Bank Holding Company Act of 1956. Does not include companies that became bank holding companies as a result of “Bank Holding Company Act Amendments of 1970,” approved December 31, 1970) Location of Location of principal office Holding company principal office Holding company Arkansas Montana Little Rock. First Arkansas Bankstock Corporation Great Falls. .. Bancorporation of Montana California New Hampshire Los Angeles. Western Bancorporation Nashua___ New Hampshire Bankshares, Inc. Oakland........ Central Banking System, Inc. New Jersey Colorado Hackensack... United Jersey Banks1 Boulder................. Affiliated Bankshares of Colorado, Inc. Newark........... First National State Bancorporation1 Colorado Springs. Central Colorado B incorp, Inc.1 Newark........... Midlantic Banks Inc. Denver. Colorado National Bankshares, Inc.2 Denver...........................j The First National Bancorporation, inc. New Mexico Denver. United Banks of Colorado, Inc. Alamogordo. . Bank Securities, Inc. Littleton.........................j First Colorado Bankshares, Inc. New York Connecticut Buffalo............. Marine Midland Banks, Inc. Hartford. . First Connecticut Bancorp, Inc.1 New York.. .. The Bank of New York Company, Inc. New York.. . . Bankers Trust New York Corporation District of Columbia New York.... Charter New York Corporation Washington............. Financial General Bankshares, Inc. New York. ... Empire Shares Corporation New York. .. . The Morris Plan Corporation Florida Rochester........ Lincoln First Banks Inc. Boca Raton., First Bancshares of Florida, Inc.1 Rochester........ Security New York State Corporation Coral Gables United Bancshares of Florida, Inc. Warsaw........... Financial Institutions, Inc. Fort Lauderdale Broward Bancshares, Inc. Warsaw........... Geneva Shareholders, Inc. Hollywood...................... Citizens Bancshares of Florida, Inc.1 Jacks' iville...................j Atlantic Bancorporation North Carolina Jacksonville...................j Barnett Banks of Florida, Inc. Whiteville. . . . United Carolina Bancshares Corporation1 Jacksonville................... Charter Bankshares Corporation Jacksonville...................j Trustees, Estate of Alfred I. duPont Ohio Miami........................... Central Bancorp, Inc Cincinnati The Central Bancorporation, Inc. Miami............................ City National Bank C orporation1 Cleveland........ Society Corporation Miami............................ Commercial Bancorp, Inc. Columbus American Bancorporation Miami............................j Pan American Bancshares, Inc. Columbus BancOhio Corporation Miami............................■ Southeast Banking Corporation2 Columbus First Banc Group of Ohio, Inc. Miami Beach................ Jefferson Bancorp, Inc. Columbus Huntington Bancshares Incorporated Orlando......................... First at Orlando Corporation Mansfield........ Mid-Ohio Banc-Shares, Inc. Tampa...........................j Exchange Bancorporation, Inc. Tampa. First Financial Corporation South Dakota Tampa. First Florida Bancorporation Aberdeen........ Dacotah Bank Holding Co. Tampa...........................i The First National Bank of Tampa Tampa.. . Union Security & Investment Co. Tennessee Chattanooga.. Hamilton Bancshares, Inc.2 Georgia Johnson City.. United Tennessee Bancshares Corporation Atlanta... Trust Company of Georgia Atlanta... Trust Company of Georgia Associates Texas Savannah. Citizens and Southern Holding Company Dallas.............. Mercantile National Bank at Dallas Savannah. The Citizens and Southern National Bank Fort Worth. . . The First National Bank of Fort Worth Houston.......... First City Bancorporation of Texas, Inc.2 Iowa Houston.......... Southwest Bancshares, Inc.1 Des Moines. Brenton Banks, Inc. Red Oak Hawkeye Bancorporation Utah Salt Lake City First Security Corporation Kentucky Louisville.. Trustees, First National Bank of Louisville Virginia Arlington........ First Virginia Bankshares Corporation Maine Lynchburg.... Fidelity American Bankshares, Inc. Augusta. . . Depositors Corporation Richmond United Virginia Bankshares Incorporated Bangor.. . . Eastern Trust and Banking Company Richmond Virginia Commonwealth Bankshares, Inc. Bangor.. . . Merrill Bankshares Company Roanoke......... Dominion Bankshares Corporation Lewiston. . Northeast Bankshare Association2 Portland.. United Bancorp of Maine1 Washington Port Angeles. . Union Bond & Mortgage Company Maryland Spokane.......... Washington Bancshares, Inc. Baltimore. Mercantile Bankshares Corporation Wisconsin Massachusetts Appleton........ First National Corporation Boston......... Baystate Corporation Appleton........ Valley Bancorporation Boston.......... Shawmut Association, Inc. Green Bay.. . , Associated Bank Services, Inc. Madison.......... Affiliated Bank Corporation Minnesota Madison.......... Mid-Wis Bankshares, Inc. Minneapolis. Bank Shares Incorporated Milwaukee---- American Bankshares Corporation Minneapolis. First Bank System, Inc. Milwaukee..., First Wisconsin Bankshares Corporation Minneapolis. Northwest Bancorporation Milwaukee.... The Marine Corporation St. Paul......... American Bancorporation, Inc.1 Milwaukee___ Marshall & Ilsley Bank Stock Corporation St. Paul......... Jacob Schmidt Company1 Sheboygan... . Citizens Bancorporation St. Paul......... Mid America Bancorporation, Inc. Sheboygan... . Security Financial Services, Inc. St. Paul......... Otto Bremer Company Waukesha. ... First Holding Company, Inc. St. Paul......... Otto Bremer Foundation Wausau........... Central Wisconsin Bankshares, Inc. Missouri Wyoming Clayton.......................... Mark Twain Bancshares, Inc. Cheyenne. Wyoming Bancorporation Kansas City..................I Commerce Bancshares, Inc. Kansas City..................! First National Charter Corporation Canada Kansas City..................j Joe W. Ingram Trust “B” Montreal........ Bank of Montreal Kansas City. Midwest Bancorporation, Inc. Toronto.......... Canadian Imperial Bank of Commerce Kansas City. Missouri Bancshares, Inc.1 St. Joseph. First Midwest Bancorp., Inc. England St. Louis. . First Union, Incorporated London......... Barclays Bank Limited St. Louis. . General Bancshares Corporation Springfield. U. N. Bancshares, Inc.1 Japan Tokyo............ The Bank of Tokyo, Ltd. 1 These companies were bank holding companies as of Dec. 31, 1970, but had not registered with the Board in 1970. 2 Reflects name changes subsequent to Dec. 31, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 111 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Arthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Sherman J. M aisel Andrew F. Brimmer W illiam W. Sherrill Robert C. Holland, Secretary of the Board J. Charles Partee, Adviser to the Board Robert Solomon, Adviser to the Board Howard H. Hackley, Assistant to the Board Charles Molony, Assistant to the Board Robert L. Cardon, Assistant to the Board David B. Hexter, Assistant to the Board Joseph R. Coyne, Special Assistant to the Board Frank O’Brien, Jr., Special Assistant to the Board 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 Normand 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, Deputy General Counsel JBrenton C. Leavitt, Deputy Director Lawrence F. Noble, Assistant General Counsel Frederick R. Dahl, Assistant Director Pauline B. Heller, Adviser Jack M. Egertson, Assistant Director Grasty Crews, II, Adviser John P. Flaherty, Assistant Director DIVISION OF RESEARCH AND STATISTICS Janet O. Hart, Assistant Director John N. Lyon, Assistant Director J. Charles Partee, Director John T. McClintock, Assistant Director Stephen H. Axilrod, Associate Director Thomas A. Sidman, Assistant Director Lyle E. Gramley, Associate Director Tynan Smith, Assistant Director Stanley J. Sigel, Adviser Murray S. Wernick, Adviser DIVISION OF PERSONNEL ADMINISTRATION Kenneth B. Williams, Adviser Edwin J. Johnson, Director James B. Eckert, Associate Adviser John J. Hart, Assistant Director Peter M. Keir, Associate Adviser DIVISION OF ADMINISTRATIVE SERVICES James L. Pierce, Associate Adviser Edward C. Ettin, Assistant Adviser Joseph E. Kelleher, Director Stephen P. Taylor, Assistant Adviser Donald E. Anderson, Assistant Director Louis Weiner, Assistant Adviser John D. Smith, Assistant Director Joseph S. Zeisel, Assistant Adviser OFFICE OF THE CONTROLLER Levon H. Garabedian, Assistant Director John Kakalec, Controller DIVISION OF INTERNATIONAL FINANCE § Harry J. Halley, Deputy Controller Robert Solomon, Director fRobert L. Sammons, Associate Director DIVISION OF DATA PROCESSING John E. Reynolds, Associate Director Jerold E. Slocum, Director John F. L. Ghiardi, Adviser Charles L. Hampton, Associate Director A. B. Hersey, Adviser Glenn L. Cummins, Assistant Director Reed J. Irvine, Adviser Jof M. Jackson, Assistant Director Samuel I. Katz, Adviser Henry W. Meetze, Assistant Director Bernard Norwood, 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 tOn leave of absence. IServes also as Program Director for Banking Structure in Robert F. Gemmill, Associate Adviser the Office of the Secretary. Digitized for FRASSaEmRu el Pizer, Associate Adviser §Also serves as Program Director for Management Systems. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 112 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. M orris 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 113 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 Al 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 C^ok 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 114 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 115 BANK CREDIT-CARD AND CHECK-CREDIT PLANS. THE REDESIGNED DISCOUNT MECHANISM AND 1968. 102 pp. $1.00 a copy; 10 or more sent to THE MONEY MARKET. 1968. 29 pp. one address, $.85 each. SUMMARY OF THE ISSUES RAISED AT THE ACA INTEREST RATE EXPECTATIONS: TESTS ON YIELD DEMIC SEMINAR ON DISCOUNTING. 1968. SPREADS AMONG SHORT-TERM GOVERNMENT 16 pp. SECURITIES. 1968. 83 pp. $.50 a copy; 10 or A REVIEW OF RECENT ACADEMIC LITERATURE more sent to one address, $.40 each. ON THE DISCOUNT MECHANISM. 1968. 40 pp. SURVEY OF FINANCIAL CHARACTERISTICS OF DISCOUNT POLICY AND BANK SUPERVISION. CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or 1968. 72 pp. more sent to one address, $.85 each. THE LEGITIMACY OF CENTRAL BANKS. 1969. SURVEY OF CHANGES IN FAMILY FINANCES. 1968. 24 pp. 321 pp. $1.00 a copy; 10 or more sent to one SELECTIVE CREDIT CONTROL. 1969. 9 pp. address, $.85 each. SOME PROPOSALS FOR A REFORM OF THE DIS REPORT OF THE JOINT TREASURY-FEDERAL RE COUNT WINDOW. 1969. 40 pp. SERVE STUDY OF THE U.S. GOVERNMENT SECURITIES MARKET. 1969. 48 pp. $.25 a copy; AN EVALUATION OF SOME DETERMINANTS OF 10 or more sent to one address, $.20 each. MEMBER BANK BORROWING. 1969. 29 pp. JOINT TREASURY-FEDERAL RESERVE STUDY OF ACADEMIC VIEWS ON IMPROVING THE FEDERAL THE GOVERNMENT SECURITIES MARKET: STAFF RESERVE DISCOUNT MECHANISM. 1970. STUDIES—PART 1 (papers by Cooper, Bernard, 172 pp. and Scherer). 1970. 86 pp. $.50 a copy; 10 or CAPITAL AND CREDIT REQUIREMENTS OF AGRI more sent to one address, $.40 each. CULTURE, AND PROPOSALS TO INCREASE AVAILABILITY OF BANK CREDIT. 1970. 160 pp. (Limited supplies, in mimeographed or similar form, of staff papers other than those con FINANCIAL INSTABILITY REVISITED: THE ECO tained in Part 1 are available upon request for NOMICS OF DISASTER. 1970. 87 pp. single copies. See p. 48 of main report for a list of such papers.) STAFF ECONOMIC STUDIES REAPPRAISAL OF THE FEDERAL RESERVE DIS Studies and papers on economic and financial sub COUNT MECHANISM: jects that are of general interest in the field of economic research. REPORT OF A SYSTEM COMMITTEE. 1968. 23 pp. $.25 a copy; 10 or more sent to one ad Summaries only printed in the Bulletin. dress, $.20 each. (Limited supply of mimeographed copies of full text available upon request for single copies.) REPORT ON RESEARCH UNDERTAKEN IN CON MEASURES OF INDUSTRIAL PRODUCTION AND NECTION WITH A SYSTEM STUDY. 1968. 47 FINAL DEMAND, by Clayton Gehman and Cor pp. $.25 a copy; 10 or more sent to one address, $.20 each. nelia Motheral. Jan. 1967. 57 pp. OPTIMAL CHOICE OF MONETARY POLICY INSTRU Limited supply of the following papers relating to MENTS IN A SIMPLE STOCHASTIC MACRO the Discount Study, in mimeographed or similar MODEL, by William Poole. Sept. 1970. 20 pp. form, available upon request for single copies: UNCERTAINTY AND STABILIZATION POLICIES FOR A STUDY OF THE MARKET FOR FEDERAL FUNDS. A NONLINEAR MACROECONOMIC MODEL, by 1968. 47 pp. Franklin R. Shupp. Dec. 1970. 23 pp. THE SECONDARY MARKET FOR NEGOTIABLE OPERATING POLICIES OF BANK HOLDING COM CERTIFICATES OF DEPOSIT. 1968. 89 pp. PANIES—PART 1, by Robert J. Lawrence. Apr. RESERVE ADJUSTMENTS OF THE EIGHT MAJOR 1971. 82 pp. NEW YORK CITY BANKS DURING 1966. 1968. THE RELATIVE IMPORTANCE OF MONETARY AND 29 pp. FISCAL VARIABLES IN DETERMINING PRICE DISCOUNT POLICY AND OPEN MARKET OPERA LEVEL MOVEMENTS: A NOTE, by Peter S. Rose TIONS. 1968. 23 pp. and Lacy H. Hunt II. June 1971. 7 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 116 FEDERAL RESERVE BULLETIN □ JUNE 1971 ESTIMATION OF THE INVESTMENT AND PRICE AUTO LOAN CHARACTERISTICS AT MAJOR SALES EQUATIONS OF A MACROECONOMETRIC MODEL, FINANCE COMPANIES. Feb. 1967. 5 pp. by Robert J. Shiller. June 1971. 65 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. Printed in full in the Bulletin. 1967. 26 pp. (Reprints available as shown in following list.) EVIDENCE ON CONCENTRATION IN BANKING MARKETS AND INTEREST RATES, Staff Eco nomic Study by Almarin Phillips. June 1967. 11 pp. REPRINTS NEW BENCHMARK PRODUCTION MEASURES, 1958 ADJUSTMENT FOR SEASONAL VARIATION. June AND 1963. June 1967. 4 pp. 1941. 11 pp. REVISED INDEXES OF MANUFACTURING CAPACITY SEASONAL FACTORS AFFECTING BANK RESERVES. AND CAPACITY UTILIZATION. July 1967. 3 pp. Feb. 1958. 12 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON LIQUIDITY AND PUBLIC POLICY, Staff Paper by MEMBER BANKS. July 1967. 6 pp. Stephen H. Axilrod. Oct. 1961. 17 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK UNDERWRITING OF MUNICIPAL REVENUE SEASONALLY ADJUSTED SERIES FOR BANK BONDS. Aug. 1967. 16 pp. CREDIT. July 1962. 6 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC INTEREST RATES AND MONETARY POLICY, Staff MODEL, Staff Economic Study by Frank de Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. MEASURES OF MEMBER BANK RESERVES. July THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. 1963. 14 pp. 1968. 7 pp. CHANGES IN BANKING STRUCTURE, 1953-62. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN Sept. 1963. 8 pp. 1960-67. Apr. 1968. 23 pp. REVISION OF BANK DEBITS AND DEPOSIT TURN MONETARY RESTRAINT AND BORROWING AND OVER SERIES. Mar. 1965. 4 pp. CAPITAL SPENDING BY LARGE STATE AND LOCAL GOVERNMENTS IN 1966. July 1968. TIME DEPOSITS IN MONETARY ANALYSIS, Staff 30 pp. Economic Study by Lyle E. Gramley and Samuel B. Chase, Jr. Oct. 1965. 25 pp. REVISED SERIES ON BANK CREDIT. Aug. 1968. 4 pp. RESEARCH ON BANKING STRUCTURE AND PER FORMANCE, Staff Economic Study by Tynan FEDERAL FISCAL POLICY IN THE 1960's. Sept. Smith. Apr. 1966. 11 pp. 1968. 18 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic BUSINESS FINANCING BY BUSINESS FINANCE Study by James Pierce. Aug. 1966. 9 pp. COMPANIES. Oct. 1968. 13 pp. A REVISED INDEX OF MANUFACTURING CAPACITY, MANUFACTURING CAPACITY: A COMPARISON OF Staff Economic Study by Frank de Leeuw with TWO SOURCES OF INFORMATION, Staff Eco Frank E. Hopkins and Michael D. Sherman. nomic Study by Jared J. Enzler. Nov. 1968. Nov. 1966. 11 pp. 5 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN MONETARY RESTRAINT, BORROWING, AND CAP U.S. CAPITAL MARKETS, Staff Economic Study ITAL SPENDING BY SMALL LOCAL GOVERN by Daniel H. Brill with Ann P. Ulrey. Jan. MENTS AND STATE COLLEGES IN 1966. Dec. 1967. 14 pp. 1968. 30 pp. REVISED SERIES ON COMMERCIAL AND INDUS REVISION OF CONSUMER CREDIT STATISTICS. TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. Dec. 1968. 21 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BOARD PUBLICATIONS A 117 HOUSING PRODUCTION AND FINANCE. Mar. 1969. MONETARY AGGREGATES AND MONEY MARKET 7 pp. CONDITIONS IN OPEN MARKET POLICY. Feb. 1971.26 pp. OUR PROBLEM OF INFLATION. June 1969. 15 pp. BANK FINANCING OF MOBILE HOMES. Mar. 1971. THE CHANNELS OF MONETARY POLICY, Staff Eco 4 pp. nomic Study by Frank de Leeuw and Edward TREASURY AND FEDERAL RESERVE FOREIGN EX Gramlich. June 1969. 20 pp. CHANGE OPERATIONS. Mar. 1971. 19 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL RESPONSE OF STATE AND LOCAL GOVERNMENTS BANKS. Aug. 1969. 5 pp. TO VARYING CREDIT CONDITIONS. Mar. 1971. 24 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. CHANGES IN BANK LENDING PRACTICES, 1970. Apr. 1971. 5 pp. RECENT CHANGES IN STRUCTURE OF COMMER CIAL BANKING. Mar. 1970. 16 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT POSITION. Apr., 1971. 14 pp. SDR's IN FEDERAL RESERVE OPERATIONS AND FINANCIAL DEVELOPMENTS IN THE FIRST QUAR STATISTICS. May 1970. 4 pp. TER OF 1971. May 1971. 10 pp. BANKING AND MONETARY STATISTICS, 1969. CHANGES IN TIME AND SAVINGS DEPOSITS, Selected series of banking and monetary statistics OCTOBER 1970—JANUARY 1971. May 1971. for 1969 only. Mar. and July 1970. 18 pp. 11 pp. INFLATION IN WESTERN EUROPE AND JAPAN. INTEREST RATES, CREDIT FLOWS, AND MON Oct. 1970. 13 pp. ETARY AGGREGATES SINCE 1964. June 1971. REVISION OF THE MONEY STOCK. Dec. 1970. 16 pp. 23 pp. TWO KEY ISSUES OF MONETARY POLICY. June MEASURES OF SECURITY CREDIT. Dec. 1970. 1971.4 pp. 11 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 1971. 12 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN BANK RATES ON BUSINESS LOANS— REVISED CIAL INSTITUTIONS. Jan. 1971. 12 pp. SERIES. June 1971. 10 pp. ANTICIPATED SCHEDULE OF RELEASE DATES FOR PUBLIC PERIODIC RELEASES1— BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Approximate Date or period to which Weekly releases release day data refer Aggregate Reserves and Member Bank Deposits (H.3) Tuesday Week ended previous Wednesday Applications and Reports Received, or Acted on, by the Tuesday Week ended previous Board (H.2) Saturday Assets and Liabilities of All Commercial Banks in the Wednesday Wednesday, 2 weeks ear United States (H.8) lier Changes in State Bank Membership (K.3) Tuesday Week ended previous Saturday Commercial and Industrial Loans Outstanding, by Industry Wednesday Wednesday, 1 week ear (H.12)2 lier Condition Report of Large Commercial Banks in New York Thursday Previous Wednesday and Chicago (H.4.3) Condition Report of Large Commercial Banks and Domes- Wednesday Wednesday, 1 week eartic Subsidiaries (H.4.2)3 lier Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 118 FEDERAL RESERVE BULLETIN □ JUNE 1971 Approximate Date or period to which Weekly releases (cont.) release day data refer Deposits, Reserves, and Borrowings of Member Banks Wednesday Week ended 3 Wednes (H.7) days earlier Factors Affecting Bank Reserves and Condition Statement Thursday Week ended previous of Federal Reserve Banks (H.4.1) Wednesday Money Stock Measures (H.6) Thursday Week ended Wednesday of previous week Reserve Positions of Major Reserve City Banks (H.5) Friday Week ended Wednesday of previous week Selected Interest and Exchange Rates for Major Countries Thursday Week ended previous and the United States (H.13) Saturday Weekly Foreign Exchange Rates (H.10) Monday Week ended previous Friday Weekly Summary of Banking and Credit Measures (H.9) Thursday Week ended previous Wednesday; and week ended Wednesday of previous week Weekly U.S. Government Security Yields and Prices (H.15) Monday Week ended previous Saturday Semimonthly releases Research Library—Recent Acquisitions (J.2) 1st and 16th Period since last release of month Monthly releases Assets and Liabilities of All Member Banks by Districts 14th of month Last Wednesday of pre (G.7.1) vious month Automobile Loans by Major Finance Companies (G.25) 7th working 2nd month previous day of month Automobile Instalment Credit Developments (G.26) 6th working 2nd month previous day of month Bank Debits, Deposits, and Deposit Turnover (G.6) 25th of month Previous month Business Indexes (G.12.3) 15th of month Previous month (Industrial Production Indexes also available annually, see p. A-126) Commercial and Industrial Term Loans Outstanding by 2nd Wednes Last Wednesday of pre Industry (H.12b) Available only as attachment to weekly day of month vious month H.12 release Consumer Credit (G.19) 3rd working 2nd month previous day of month Consumer Instalment Credit at Commercial Banks (G.18) 4th working 2nd month previous day of month Finance Companies (G.20) 5th working 2nd month previous day of month Interdistrict Settlement Fund (G.15) 15th of month Previous month Index Numbers of Wholesale Prices (G.8) 20th of month Previous month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FEDERAL RESERVE BOARD PUBLICATIONS A 119 Monthly releases (cont.) Approximate Date or period to which release day data refer Maturity Distribution of Euro-Dollar Deposits in Foreign 1st of month Last day of 3rd month Branches of U.S. Banks (G.17) previous Maturity Distribution of Outstanding Negotiable Time Cer 24th of month Last Wednesday of pre tificates of Deposit (G.9) vious month Monthly Foreign Exchange Rates (G.5) 1st of month Previous month National Summary of Business Conditions (G.12.2) 15th of month Previous month Open Market Money Rates and Bond Prices (G.13) 6th of month Previous month State Member Banks of Federal Reserve System and Non 1st week of Previous month member Banks that Maintain Clearing Accounts with month Federal Reserve Banks (G.4) (Also annual) 1st week of End of previous year February Summary of Equity Security Transactions (G.16) Last week of Release date month U.S. Government Security Yields and Prices (G.14) 4th of month Previous month Quarterly releases Bank Rates on Short-Term Business Loans (E.2) 18th of March, 1st 15 days of February, June, Sep May, August, Novem tember, De ber cember Capacity Utilization in Manufacturing (E.5) 21st of Janu Previous quarter ary, April, July, Octo ber Flow of funds: 15th of Feb Previous quarter Seasonally adjusted and unadjusted (Z.l) ruary, May, Seasonally adjusted only (Z.la) August, and November Volume and Composition of Individuals’ Saving (flow of funds series) (E.8) Sales, Profits, and Dividends of Large Corporations (E.6)4 10th of April, 2nd quarter previous June, Sep tember, De cember Semiannual releases Approximate Date or period to which release day data refer Assets and Liabilities of All Commercial Banks, by Class May and No End of previous Decem of Bank (E.3.4) vember ber and June List of OTC Margin Stocks (E.7) June 30, De Release date cember 31 (Also monthly revisions) Last week of Period since last release month Assets, Liabilities, and Capital Accounts of Commercial and May and No End of previous Decem Mutual Savings Banks—Reports of Call (Joint Release vember ber and June of Federal Deposit Insurance Corp., Board of Governors of Federal Reserve System, and Office of Comptroller of the Currency. Published and distributed by FDIC) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 120 FEDERAL RESERVE BULLETIN □ JUNE 1971 Annual releases Approximate Date or period to which release day data refer Bank Debits to Demand Deposit Accounts Except Inter March 25 Previous year bank and U.S. Government Accounts (C.5) End of Month Demand Deposits Except Interbank and U.S. March 25 Previous year Government Accounts (C.5a) Federal Reserve Par List (G.3) Early Novem Previous September 30 ber (Also monthly supplements) 5th of month Period since last release Industrial Production Indexes November Previous year (Available upon request, after being announced) Member Bank Income (C.4) End of May Previous year 1 Release dates are those anticipated or usually met. However, it should be noted that for some releases there is nor mally a certain variability because of reporting or processingprocedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2 Contains monthly H.12b release on second Wednesday of month. 3 Contains revised H.4.3 data. 4 Publication temporarily suspended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 121 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers’, 14, 33, 37 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment of Arbitrage, 91 personal loans, 23 Assets and liabilities (See also Foreigners): Adjusted, and currency, 19 Banks, by classes, 20, 24, 25, 26, 37 Banks, by classes, 11, 20, 25, 29, 37 Banks and the monetary system, 19 Euro-dollars, 86 Corporate, current, 49 Federal Reserve Banks, 12, 86 Federal Reserve Banks, 12 Postal savings, 19, 25 Automobiles: Subject to reserve requirements, 18 Consumer instalment credit, 54, 55, 56 Discount rates (See Interest rates) Production index, 58, 59 Discounts and advances by Reserve Banks, 4, 12, 13, 15 Bank credit proxy, 18 Dividends, corporate, 48, 49 Bank holding companies, Dec. 31, 1970, 110 Dollar assets, foreign, 75, 81 Bankers’ balances, 25, 28 {See also Foreigners, claims on, and liabilities to) Earnings and hours, manufacturing industries, 65 Banks and the monetary system, 19 Employment, 62, 64, 65 Banks for cooperatives, 39 Euro-dollar deposits in foreign branches of Bonds (See also U.S. Govt, securities): U.S. banks, 86 New issues, 45, 46, 47 Yields and prices, 34, 35 Farm mortgage loans, 50, 51 Branch banks, liabilities of U.S. banks to their foreign Federal finance: branches, 30, 86 Cash transactions, 40 Brokerage balances, 85 Receipts and expenditures, 41 Business expenditures on new plant and equipment, 49 Treasury operating balance, 40 Business indexes, 62 Federal funds, 8, 24, 26, 30, 33 Business loans (See Commercial and industrial loans) Federal home loan banks, 39, 51 Federal Housing Administration, 50, 51, 52, 53 Capacity utilization, 62 Federal intermediate credit banks, 39 Capital accounts: Federal land banks, 39 Banks, by classes, 20, 25, 30 Federal National Mortgage Assn., 39, 53 Federal Reserve Banks, 12 Federal Reserve Banks: Central banks, 90, 92 Condition statement, 12 Certificates of deposit, 30 U.S. Govt, securities held, 4, 12, 15, 42, 43 Coins, circulation, 16 Federal Reserve credit, 4, 6, 12, 15 Commercial and industrial loans: Federal Reserve notes, 12, 16 Commercial banks, 24, 32 Federally sponsored credit agencies, 39 Weekly reporting banks, 26, 31 Finance company paper, 33, 37 Commercial banks: Financial institutions, loans to, 24, 26 Assets and liabilities, 20, 24, 25, 26 Float, 4 Consumer loans held, by type, 55 Flow of funds: Deposits at, for payment of personal loans, 23 Financial assets and liabilities, 71.2 Loans sold outright, 32 Saving and financial flows, 70 Number, by classes, 20 Foreign: Real estate mortgages held, by type, 50 Currency operations, 12, 14, 75, 81 Commercial paper, 33, 37 Deposits in U.S. banks, 5, 12, 19, 25, 29, 86 Condition statements (See Assets and liabilities) Exchange rates, 89 Construction, 62, 63 Trade, 73 Consumer credit: Foreigners: Instalment credit, 54, 55, 56, 57 Claims on, 82, 83, 86, 87, 88 Noninstalment credit, by holder, 55 Liabilities to, 30, 76, 77, 79, 80, 81, 86, 87, 88 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 Demand deposits: Adjusted, banks and the monetary system, 19 Income, national and personal, 68, 69 Adjusted, commercial banks, 15, 18, 25 Income and expenses: Banks, by classes, 11, 20, 25, 29 Insured commercial banks, 94 Subject to reserve requirements, 18 Member banks, 94-109 Turnover, 15 Industrial production index, 58, 62 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 01 l-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 011-A hguorht 4-A segap o t era secnerefeR( A 122 FEDERAL RESERVE BULLETIN □ JUNE 1971 Instalment loans, 54, 55, 56, 57 Real estate loans: Insurance companies, 38, 42, 43, 51 Banks, by classes, 24, 27, 37, 50 Insured commercial banks, 22, 23, 24, 94 Delinquency rates on home mortgages, 52 Interbank deposits, 11, 20, 25 Mortgage yields, 53 Interest rates: Type of holder and property mortgaged, 50, 51, Business loans by banks, 32 52, 53 Federal Reserve Banks, 9 Reserve position, basic, member banks, 8 Foreign countries, 90, 91 Reserve requirements, member banks, 10 Money market rates, 33 Reserves: Mortgage yields, 53 Central banks and govts., 92 Prime rate, commercial banks, 33 Commercial banks, 25, 28, 30 Time deposits, maximum rates, 11 Federal Reserve Banks. 12 Yields, bond and stock, 34 Member banks, 5, 6, 11, 18, 25 International capital transactions of the U.S., 76-88 U.S. reserve assets, 75 International institutions, 74, 75, 90, 92 Residential mortgage loans, 35, 50, 51, 52 Inventories, 68 Retail credit, 54 Investment companies, issues and assets, 47 Retail sales, 62 Investments (See also specific types of investments): Banks, by classes, 20, 24, 27, 28, 37 Sales finance companies, loans, 54, 55, 57 Commercial banks, 18 Saving: Federal Reserve Banks, 12, 15 Flow of funds series, 70 Life insurance companies, 38 National income series, 69 Savings and loan assns., 38 Savings and loan assns., 38, 43, 51 Savings deposits (See Time deposits) Savings institutions, principal assets, 37, 38 Labor force, 64 Securities (See also U.S. Govt, securities): Loans (See also specific types of loans): Federally sponsored agencies, 39 Banks, by classes, 20, 24, 26, 27, 37 International transactions, 84, 85 Commercial banks, 18, 20, 23, 24, 26, 27, 31, 32 New issues, 45, 46, 47 Federal Reserve Banks, 4, 6, 12, 15 Silver coin and silver certificates, 16 Insurance companies, 38, 51 Special Drawing Rights, 4, 12, 13, 19, 72, 75 Insured or guaranteed by U.S., 50, 51, 52, 53 State and local govts.: Savings and loan assns., 38, 51 Deposits, 25, 29 Holdings of U.S. Govt, securities, 42, 43 New security issues, 45, 46 Manufacturers: Ownership of securities of, 24, 28, 37, 38 Capacity utilization, 62 Yields and prices of securities, 34, 35 Production index, 59, 62 State member banks, 22, 23 Margin requirements, 10 Stock market credit, 36 Member banks: Stocks: Assets and liabilities, by classes, 20, 24 New issues, 46, 47 Borrowings at Reserve Banks, 6, 12 Yields and prices, 34, 35 Deposits, by classes, 11 Income and expenses,94-109 Tax receipts, Federal, 41 Number, by classes, 20 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 US. 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 Member bank holdings, 18 Treasury deposits at Reserve Banks, 5, 12, 40 U.S. Govt, securities: National banks, 22, 23 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
BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES (o TH E FED ER A L R E S E R V E S Y S TE M g) ■& o Q> HAWAII CD © Legend Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1971, May 31). Federal Reserve Bulletin, 1971-06. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197106
@misc{wtfs_bulletin_197106,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1971-06},
year = {1971},
month = {May},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197106},
note = {Retrieved via When the Fed Speaks corpus}
}