Federal Reserve Bulletin, 1971-08

FEDERAL RESERVE BULLETIN * ★ ★ * * * * * AUGUST 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 8 □ VOLUME 57 □ AUGUST 1971 CONTENTS 639 Financial Developments in the Second Quarter of 1971 649 Staff Economic Studies: Summaries 653 Statements to Congress 663 Record of Policy Actions of the Federal Open Market Committee 672 Law Department 698 Announcements 700 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 74 International Statistics A 99 Board of Governors and Staff A 101 Open Market Committee and Staff; Federal Advisory Council A 102 Federal Reserve Banks and Branches A 103 Federal Reserve Board Publications A 107 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony COMMITTEE J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Developments in the Second Quarter of 1971 This report, which was sent to the Joint Economic Committee of the U.S. Congress, highlights the important developments in financial markets during the spring and early summer. DOMESTIC FINANCIAL market conditions were influenced during the second quarter of 1971 by a complex of factors that resulted in a substantial rise in interest rates despite continued sharp expansion in the monetary aggregates. However, even with the general advance in interest rates over the quarter, midyear bor­ rowing costs in both short- and long-term markets were no higher than the reduced levels that had been established by late fall of last year. The Nation’s output of goods and services rose further, although by less than the exceptionally large increase for the first quarter. Reflecting this further gain in spending as well as precautionary demands for cash balances and other factors, the narrowly defined money stock (privately held demand deposits plus currency) increased at an 11 per cent annual rate over the quarter. This was somewhat more rapid than the already strong rate of advance recorded in the first quarter. Growth in other monetary measures, however, although remaining quite strong relatively, was substantially slower than in the first quarter. A sharp further increase in the narrowly defined money stock was not an unexpected development since conditions had pointed in this direction from the outset of the quarter. However, be­ cause interest rates were already being pushed upward by other factors, the Federal Open Market Committee decided to move Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 FEDERAL RESERVE BULLETIN □ AUGUST 1971 cautiously in instituting action to moderate this growth; it was felt that additional strong upward pressures on rates would be inappropriate when the economy was just beginning to recover its forward momentum. As the quarter progressed and it be­ came apparent that the tendency for the monetary aggregates to rise was stronger than initially estimated, some further firming actions were taken. The combination of Federal Reserve action and further growth in GNP produced a significant increase in money market rates, which was reflected more generally in smaller advances of other interest rates. In addition, borrowing in capital markets by business firms and State and local governments remained quite substantial over the quarter, while investors became some­ what more reluctant to acquire the oncoming supply of new issues. This increased investor caution reflected uncertainties regarding the potential strength of the current economic recovery, the chances for further abatement of inflationary pressures, the possibility of tighter monetary conditions, and the future value of various currencies in foreign exchange markets. Substantial outflows of U.S. funds occurred prior to the German decision to permit the mark to float in early May, and the indicated deficit in U.S. balance of payments for the quarter was very large. Monthly averages of daily figures for member banks. Total and nonborrowed reserves are adjusted to exclude the effects of changes in reserve requirement percentages. Non­ borrowed reserves are total reserves adjusted minus member bank borrowings from the Federal Reserve. Excess reserves are total reserves less required reserves. Latest figures, June. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1971 641 Reflecting the impact of these various forces, yields on new corporate issues rose about one-half of a percentage point, and somewhat larger advances were recorded in yields on other types of bonds. Advances in short-term market rates were considerably larger—the market rate on 90-day Treasury bills, for example, increased about 150 basis points from the last week in March to the last week in June—so that the wide spreads formerly prevailing between short- and long-term rates narrowed some­ what. Despite continued weakness in business loan demands, banks also raised the rates charged on loans to their prime customers, apparently in response to the general uptrend in open market rates that had the effect of raising marginal costs of bank funds. Advancing a quarter of a percentage point early in the quarter, the prime rate was raised a further half a point to 6 per cent by a few banks in late June and this higher rate was generally adopted by early July. With money market rates and bank prime rates up substantially, Federal Reserve Bank discount rates were raised one-quarter of a percentage point to 5 per cent in mid- July in order to bring the cost of such borrowing at these banks into better alignment with the cost to banks of obtaining funds from other sources. AGGREGATES The monetary aggregates continued to expand at a strong pace in the second quarter of 1971. In particular, the narrowly defined money stock (Mi) displayed a very sharp advance, rising at an annual rate of about 11 per cent. This rate of increase was 2 percentage points larger than in the first quarter when a catch­ up in money demands from the low growth of late last year was an important explanatory factor. The unusually rapid rate of increase was apparently attributable in part to increased demand to hold money balances in view of uncertainties regarding financial developments and the economy generally. Primarily, however, the increase reflected the impact on transaction de­ mands for money of the substantial expansion in expenditures that occurred in both the first and second quarters of the year and the lagged response of consumer demands for money to the sharp earlier decline of market interest rates. For the first and second quarters combined, Mi increased at an annual rate of 10 per cent, closely paralleling the rate of expansion in nominal GNP from the fourth quarter of 1970 to the second quarter of 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 FEDERAL RESERVE BULLETIN □ AUGUST 1971 CONCEPTS OF MONEY RATIO SCALE, BILLIONS OF DOLLARS f ' . ■ . Ifl 700 s ' 640 ■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■I 460 420 ______________________ 380 220 200 1 1 I Seasonally adjusted monthly averages. For definitions of Mv M.„ and Mv see footnote 1 to Changes in Selected Monetary Aggregates table. Growth in broader measures of money balances that include interest-bearing deposits (other than large negotiable certificates of deposit, which are really money market instruments) receded considerably from the exceptionally rapid rate of advance in the first quarter. Growth in the time and savings deposit components of these measures, while still quite strong in comparison with historical standards, was limited by the rise in interest rates on competing market instruments, as well as by the scattered reduc­ tions that banks made early in the quarter in rates paid on such deposits. In addition, it seems likely that the massive reinter­ mediation—the shift back into deposit accounts at thrift institu­ tions from market securities, which represented a reversal of transactions undertaken during the tight money period of 1969 and early 1970—had largely run its course by the end of winter. Sales of CD’s picked up in the last 2 months of the quarter after showing little change following their January bulge. This May-June strengthening was apparently in part a reflection of corporate demands for short-term liquid assets encouraged by bank efforts to compete more vigorously for CD’s. Growth in CD’s was also stimulated to some extent by the side effects of the international financial crisis in early May. Following that crisis a substantial volume of dollar holdings accumulated by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1971 643 CHANGES IN SELECTED MONETARY AGGREGATES Percentage annual rates of change, seasonally adjusted 1970 1971 Item II III IV I II Member bank reserves: Total.......................................... 2.6 19.1 6.6 11.0 6.6 Nonborrowed............................ 4.1 24.4 9.4 11.0 5.3 Concepts of money1 Mi.............................................. 5.8 6.1 3.4 8.9 11.3 M2.............................................. 8.4 11.0 9.2 17.8 12.6 m3.............................................. 7.9 10.3 9.7 19.0 14.8 Bank credit2 Bank credit proxy adjusted....... 6.5 17.2 8.3 10.9 6.5 memo (change in billions of dollars, seasonally adjusted): Large CD’s................................ 1.7 8.5 4.3 1.8 .8 1 Mi is currency plus private demand deposits adjusted. M2 is Mi plus bank time and savings deposits adjusted other than large CD’s. M3 is M2 plus deposits at mutual savings banks and savings and loan associations. 2 Total member bank deposits plus funds provided by Euro-dollar borrowings and bank-related commercial paper. Note.—Changes are calculated from the average amounts outstanding in the last month of each quarter. international financial institutions was used to acquire CD’s. Nevertheless, despite the end-of-quarter pick-up, the net increase in CD’s fell short of the first-quarter expansion. This shortfall, along with a decline in U.S. Treasury balances and a further sharp decline in nondeposit sources of funds (chiefly in Euro­ dollar borrowings), reduced the rate of expansion in the adjusted bank credit proxy to a seasonally adjusted annual rate of 6.5 per cent, about AVt. percentage points below the first-quarter rate of growth. COMMERCIAL BANK With lendable funds readily availabie while demands for USES OF FUNDS business loans remained relatively weak, commercial banks continued to channel a large volume of funds into securities. Total investments increased by somewhat more than $5 billion in the second quarter; although about $3.5 billion less than the extraordinary first-quarter increase, this was still large by his­ torical standards. As in the first quarter, municipal securities and Federal agency issues accounted for about two-thirds of the expansion. The growth that occurred in holdings of U.S. Gov­ ernment securities resulted mainly from bank participation in the underwriting of the Treasury’s late June sale of 16^-month Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 FEDERAL RESERVE BULLETIN □ AUGUST 1971 BANK CREDIT-components notes carrying a 6 per cent coupon for which payment could be made by crediting Government deposits at banks. U.S. GOVT. SECURITIES The rate of expansion of total loans slowed to some extent in the second quarter, mainly due to a reversal of the earlier OTHER SECURITIES sharp rise in security loans. Growth in business loans remained quite modest by historical standards, but real estate loans ex­ panded at a faster pace than the already strong rate of increase established in the first quarter. Consumer loan growth was also stronger than in the first quarter. The continued strength in real TOTAL LOANS estate loans reflects the sustained recovery in residential con­ struction that reached boom proportions late last year, while the further rise in consumer loans is attributable to continued strength in purchases of durable goods by consumers, following the first-quarter resurgence in such purchases after settlement of the auto strike. Seasonally adjusted. Loans adjusted ~ t t . for transfers between banks and Growth in business loans over the second quarter, at an their holding companies, affiliates, - , r - , - , . subsidiaries, or foreign branches. annual rate of about 3 per cent, continued the general pattern of sluggishness in such credit demands that began in the latter half of last year. The same factors that dampened business loan developments in the past still appear to have been at work. Balance sheet restructuring by large business firms continued, as an additional substantial volume of long-term debt and equity instruments were sold; some of the proceeds of these financings BANK LOANS-major components were used to repay short-term debt and to meet other current bills that otherwise would have been financed with bank loans and other short-term sources of funds. In both the first and second quarters, moreover, the pick-up in corporate profits ac­ companying the cyclical recovery served to reduce the over-all need for external sources of funds in an environment where busi­ ness capital spending had leveled out and inventory investment remained quite moderate. Over recent quarters, business loan demands at smaller com­ mercial banks have not displayed the weakness experienced by large commercial banks. This contrasting experience reflects differences in the nature of loan demands facing the two groups of banks. Principal business customers of the smaller banks are Seasonally adjusted. Adjusted for transfers between banks and their generally smaller firms that may not experience the same fluctua­ holding companies, affiliates, sub­ sidiaries, or foreign branches. tion in inventory positions as large corporations. In addition, they do not have the option of obtaining a major part of their external funds from the capital market, and hence would not have been repaying short-term debt in volume out of nonbank fund sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1971 645 NONBANK Deposit growth at nonbank thrift institutions slowed to an annual INTERMEDIARIES AND rate of 17 per cent in the second quarter of 1971 from the ex­ THE MORTGAGE MARKET traordinarily high 23 per cent rate evident in the first quarter. However, the second-quarter rate still exceeded by a wide margin that for any quarter of 1970. While consumer savings continued to increase, as evidenced by the slight rise in the personal saving rate from the first to the second quarter of 1971, the upturn in yields on competing short-term investments was probably a factor in the moderation of savings growth at deposi­ tary institutions. The tapering of the reintermediation process also affected nonbank savings deposit growth. NONBANK SAVINGS ACCOUNTS Savings and loan associations used part of the funds they had acquired in the first quarter to repay advances from the Federal home loan banks, but both their new commitments and mortgage acquisitions increased faster than in the first 3 months of the year. Although mutual savings banks also increased their mort­ gage activity, they continued to invest heavily in corporate bonds as well, as yields on such issues rose appreciably from April to June. Over the first 6 months of 1971, corporate security invest­ ments accounted for about three-fifths of the over-all net increase in mutual savings bank assets, a substantially higher proportion than the average for the first half of 1969 or 1970. Net mortgage debt formation increased at a record quarterly Mil rate of $9.1 billion, seasonally adjusted, during the second quarter Seasonally adjusted. of 1971. Reflecting the sharply accelerated pace of housing and related activity, net expansion of residential mortgage debt reached a new high; but the pace of nonresidential mortgage debt formation slowed somewhat from the record first-quarter rate. As in the previous quarter, savings and loan associations provided the greatest impetus to the over-all expansion, although the other major depositary institutions were also quite active. NET CHANGE IN MORTGAGE DEBT OUTSTANDING In billions of dollars, seasonally adjusted quarterly data 1970 1971 Item II III IV I IIe Total.............................................. 5.7 7.1 7.6 8.2 9.1 Residential................................. 4.2 5.3 5.4 5.7 6.9 Other1....................................... 1.5 1.8 2.3 2.6 2.2 1 Includes commercial and other nonresidential as well as farm properties. e Partly estimated. Note.—Details may not add to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 FEDERAL RESERVE BULLETIN □ AUGUST 1971 For the second consecutive quarter, the Federal National Mortgage Association reduced its gross mortgage holdings. However, a sharp increase in commitment activity by FNMA during the second quarter suggests that support for the mortgage market from that agency is likely to be increasing in the near term. FUNDS RAISED IN The volume of new corporate security issues declined in the SECURITY MARKETS second quarter from the record level in the first quarter. Public issues of corporate bonds moderated, as many large firms had apparently completed their restructuring requirements in the fall and winter months. However, private placements rose as cash flows at insurance companies improved this year. Further­ more, new equity issues were at a record level in the second quarter, despite the lack of vigor in the stock market during May and June. New offerings of stocks came from a wide variety of industries, but utilities represented about one-third of the total. Offerings of long-term debt by State and local governments in the April-June period also fell below the peak first-quarter volume, but volume has now been at a monthly-average level of $2 billion or more for three quarters. A large backlog of con­ struction needs and a desire to fund some of the unusually large amount of outstanding short-term debt have contributed to the demand for long-term funds by State and local units. OFFERINGS OF NEW SECURITY ISSUES Monthly average in billions of dollars, not seasonally adjusted 1970 1971 Item ii III IV I II« Corporate securities—Total.......... 3.5 2.9 4.0 4.1 3.9 Bonds........................................ 2.8 2.3 3.1 3.3 2.8 Stocks........................................ .7 .6 .9 .8 1.1 State and local government bonds. 1.2 1.5 2.0 2.2 2.0 e Estimated. The Federal budget was in surplus, as is usual in the second quarter of the calendar year, but the surplus was less than onefifth as large as that of the period a year earlier. Receipts were slightly below those of the year-earlier quarter, while expendi­ tures were up almost 11 per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FINANCIAL DEVELOPMENTS, Q2 1971 647 Total net borrowing by the U.S. Government from the public was unchanged from that of the previous quarter, but the Treas­ ury was able to rebuild its cash balance over the 3-month period due partly to the sale of special issues to foreign central banks in May. Large paydowns of debt by the Federal home loan banks resulted in net repayment of debt by the federally sponsored credit agencies during the quarter. FEDERAL GOVERNMENT BORROWING AND CASH BALANCE . Quarterly totals in billions of dollars, not seasonally adjusted 1970 1971 Item II III IV I II Budget surplus or deficit............... 8.7 -7.8 -8.9 -8.2 1.6 New cash borrowings, or repay­ ments (—) -6.4 7.4 8.9 1.6 1.6 Other means of financing i............ -1.2 1.2 -.7 2.9 1.2 Change in cash balance................ 1.1 .8 .7 -3.6 4.3 memo: *Net borrowing by federally sponsored credit agencies2... 1.5 1.6 1.5 -1.0 -.9 1 Checks issued less checks paid and other accrued items. 2 Includes debt of FHLBB, the Federal Home Loan Mortgage Corporation, Federal land banks, Federal intermediate credit banks, banks for cooperatives, and FNMA (including discount notes and bonds guaranteed by the Government National Mortgage Association). INTEREST RATES Money market conditions tightened appreciably in the second quarter of 1971. Commercial banks raised the prime rate, in two steps, back to the 6 per cent level prevailing early in the year. Rates on Treasury bills, Federal funds, and commercial paper increased more than 100 basis points from late March through June. By the end of June, the 90-day Treasury bill yield, for example, had returned to the 5 per cent level, well above the 1971 low of 3.32 per cent reached in mid-March but still far below the December 1969 high—which was close to 8 per cent. In mid-July, the Federal Reserve raised the discount rate to 5 per cent, in order to bring the rate into closer alignment with other market rates, to assist in holding down inflationary pressures, and to discourage member bank borrowing at the discount win­ dow. Such borrowing began to rise sharply in June and amounted to almost $1 billion in mid-July, as contrasted to a level of about $250 million at the end of the first quarter. Accompanying the sharp increase in short-term interest rates was a smaller rise in long-term rates. In June monthly-average Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

INTEREST RATES Monthly averages except FHA (based on quotations for one day each month). Yields: U.S. Treasury bills, market yields on 3-month issues; prime commercial paper, dealer offering rates; FHA, weighted averages of private secondary market prices of new-home 30-year mortgages converted to annual yield (dashed line indicates period of adjustment of change in contractual interest rate); corporate bonds, weighted averages of new publicly offered bonds rated Aaa, Aa, and A by Moody’s Investors Service and adjusted to an Aaa basis; U.S. Govt, bonds, market yields adjusted to 20-year constant maturity by U.S. Treasury; State and local govt, bonds (20 issues, mixed quality), Bond Buyer. yields on 20-year Government bonds and new high-grade cor­ porate bonds were 44 basis points higher than in March. Yields on new corporate issues of highest quality were close to the 8 per cent level by the end of June. This represented a reversal of the first-quarter decline in yields, but these rates were still only about 30 basis points higher than the 1970 low. Interest rates on tax-exempt bonds rose almost 80 basis points over the second quarter with the long-term end of the market particularly affected by a slackening of acquisitions by commercial banks and casualty insurance companies. Reflecting the rising level of other long­ term rates, yields on FHA mortgages in secondary markets had risen 57 basis points from March through June. Since flows of funds to mortgage lenders remained ample, however, rates on conventional mortgages did not show a corresponding rise. The average contract rate on conventional first mortgages reached 7.70 per cent in June, only 10 basis points above the March level. □ 648 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 B ulletin 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 B ulletin that are of general interest to the economics includes a separate section entitled (<Staff profession and to others are summarized—or Economic Studies” that enumerates the stud­ they may be printed in full—in this section ies for which copies are currently available of the B ulletin. in that form. Study Summaries A TEST OF THE “EXPECTATIONS HYPOTHESIS” USING DIRECTLY OBSERVED WAGE AND PRICE EXPECTATIONS Stephen J. Turnovsky, University of Toronto, and Michael L. Wachter, University of Pennsylvania 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. Recent research directed at improving the trade-off or equivalently the existence of a theoretical underpinning of the Phillips long-run, vertical Phillips curve that passes curve relationship has given rise to several through the “natural” rate of unemployment. new models of wage determination. One Unfortunately, direct observations on ex­ theory that has received considerable atten­ pectations are not widely available and so a tion is the “expectations hypothesis,” which proxy variable needs to be substituted for the suggests that money wages depend upon ex­ expectations variable. In the literature, the pectations of future prices and/or money typical solution to this problem is to assume wages, as well as the unemployment rate. that expectations of price and/or money The absence of money illusion implies that wage changes are generated by a distributed these expectational variables should enter lag on past values of these variables. In this the wage equation with a coefficient equal to paper, direct survey data on price and wage unity. This in turn would imply the absence expectations are introduced. This is done of a long-run money wage-unemployment with a twofold objective. First, the expecta­ 649 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 FEDERAL RESERVE BULLETIN □ AUGUST 1971 tions data are used directly as explanatory pothesis. Finally, attempts to explain the variables in wage equations to test the expec­ wage expectations series show that the tations hypothesis. Second, an attempt is simple adaptive or extrapolative expecta­ made to explain the wage expectations series. tions hypothesis is not satisfactory. A more The major results of the paper are as fol­ general model—which posits that expected lows: First, expectations of wage or price wage changes are a function of unemploy­ changes are important in explaining the be­ ment, of unemployment lagged one period, havior of actual wage changes. Second, the and of expected price changes (or actual size of the response of actual wage changes price changes)—is much more successful. to the expectations variable is largely invari­ The coefficients suggest that expectations (in ant with respect to the specification of the keeping with the expectations model) are wage equation. The average response is ap­ largely formed in real terms, but that these proximately 0.35, with a small variance, and real wage expectations are generally constant a range of approximately ±0.15. This is over the postwar period. This latter result considerably less than the coefficient of follows from the fact that the sum of the unity, which is the value required for con­ coefficients on the two unemployment terms firmation of the neoclassical expectations hy­ is approximately zero. □ MORTGAGE REPAYMENTS AS A SOURCE OF LOANABLE FUNDS Robert Moore Fisher—Staff, Board of Governors Prepared as a staff paper and completed in the summer of 1971 This paper explores the subject of repay­ by insured savings and loan associations, ments to lenders of principal on outstanding mutual savings banks, reporting life insur­ mortgages—a flow of funds amounting to ance companies, and the Federal National several billion dollars each month. Graphic, Mortgage Association and on mortgages in­ tabular, statistical, and descriptive ap­ sured by the Federal Housing Administra­ proaches are used to analyze the influence of tion. Trends in scheduled amortization are major shifts in monetary policy on fluctua­ compared with those in unscheduled prepay­ tions in mortgage repayments. Cyclical ments for all mortgages held by New York changes in these repayments are significant State mutual savings banks and for all out­ not only because they provide a variable flow standing home mortgages insured by the of funds available for new mortgage lending FHA. but also because they affect earnings of mort­ The study indicates that mortgage repay­ gage lenders that compete for savings. ments during recent decades have provided Also discussed are the impact on sched­ a flow of funds to savings and loan associa­ uled amortization of original interest rate tions and mutual savings banks that has and maturity terms and the effect on un­ often been larger and usually more stable scheduled prepayments of subsequent than net savings flows and has invariably changes in availability and cost of credit on been positive. However, the impact of new mortgages. Sources of data include changes in monetary policy on net savings statistics for repayments on mortgages held flows has been reinforced by cyclical swings Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STAFF ECONOMIC STUDIES 651 in unscheduled mortgage prepayments, tion depressed in 1970, total mortgage re­ which were quite low in 1970. Meanwhile, payment rates were reported to be the lowest scheduled amortization rates on outstanding in several decades. Thus, lenders were able to loans have tended downward secularly with improve their portfolio earnings only to a long-run increases in interest rates and ma­ limited degree by replacing older loans as turities on newly originated mortgages. With repaid with new loans at the postwar high prepayments as well as scheduled amortiza­ levels of interest rates reached in 1970. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Arthur F. Burns, Chairman, the bond market, as was evidenced by the Board of Governors of the Federal Reserve sharp widening of spreads in the structure System, before the Committee on Banking of corporate bond yields. In short, there and Currency, House of Representatives, appeared to be a risk of bankruptcies July 20,1971. spreading to firms that in other circum­ stances would be regarded as perfectly sound. Developments over the past year or so have Confronted with an incipient crisis, the underscored the need for standby authority Federal Reserve System acted promptly to for Government guarantees of loans to assure the availability of loanable funds to business firms in emergencies where the meet the credit needs of firms that were alternative could be severe damage to the being squeezed by the contraction of the national economy. We hope that such commercial paper market. First, the System guarantees will be needed only rarely, if at made it clear to member banks that the dis­ all. But in the light of recent experience, count window would be available to assist the prudent course is to put in place loan them in meeting such needs. Second, the guarantee machinery, to provide better pro­ Board of Governors suspended ceilings on tection against the risk that a temporary the rates of interest that member banks could liquidity problem of one business enterprise pay on certificates of deposit of $100,000 may grow into a major national problem. or over. In this way banks were placed in a One example of how this could happen much better position to attract funds to lend came in mid-1970. The insolvency of the to their hard-pressed customers. Penn Central Transportation Company, a prominent borrower in the commercial These two actions helped to restore con­ paper market, was followed by a sharp con­ fidence, and fear of a liquidity crisis abated. traction of credit in that market. Since We can all take comfort from the fact that commercial paper is unsecured, investors the money and credit markets met the tests backed away from other issuers about whom of mid-1970 successfully. Looking ahead, there was any question. Concern spread however, we need better assurance that tem­ through other credit markets, fed by fears porary liquidity problems of major corpora­ that some firms with maturing commercial tions will not be allowed to damage the na­ paper might be unable to obtain refinancing tional economy. from alternative sources and would thus be Congress is now considering this issue in forced into bankruptcy. With investors gen­ connection with the pressing financial dif­ erally becoming more cautious, companies ficulties of another business enterprise, the with credit ratings less than Aaa experienced Lockheed Aircraft Corporation. In testify­ increasing difficulty in borrowing through ing today, it is certainly no part of my pur­ pose to suggest that Congress delay its deci­ Note.-Chairman Burns delivered a similar state­ sion about Lockheed. My aim is rather to ment. to the Committee on Banking, Housing and recommend that your committee, with Urban Affairs, U.S. Senate, June 16, 1971 (Bulletin of June 1971, pp. 491-94). Lockheed fresh in mind, address itself to 653 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 FEDERAL RESERVE BULLETIN □ AUGUST 1971 the question of devising more general stand­ Fourth, to assure thorough and wellards and procedures to govern credit guar­ balanced consideration of the need for antees in possible future emergencies. assistance, responsibility for passing on The Board of Governors of the Federal guarantees should be vested in top Federal Reserve System believes there are several officials concerned with over-all economic guiding principles that should be followed and financial policy. We suggest that this in designing such assistance. First, assist­ function be vested in a board chaired by the ance should be reserved for those rare Secretary of the Treasury, with the Secre­ instances where it is needed to enable a tary of Commerce and the Chairman of the sound enterprise to continue to furnish Board of Governors of the Federal Reserve goods or services to the public, and where System as members. No permanent staff failure to meet that need could have serious would be required, since guarantees would consequences for the Nation’s output, em­ be issued only under exceptional circum­ ployment, and finances. stances, and staff could be assigned as Second, since the assistance is designed needed from the governmental units repre­ to protect the public interest, it follows sented on the board. Thus, no bureaucracy that it should not be used simply to protect would be created with an interest in expand­ large firms from failure, or to bail out bad ing the “program.” There would be no “pro­ management, or to shield creditors or share­ gram”—only standby authority, ready for holders from the consequences of unwise use in the event of need. investments. Guarantees should be a last Fifth, Congress should be informed in resort, issued only when there is reasonable advance of any proposed guarantee, so that assurance of repayment of the guaranteed it will have an opportunity to review the loan and when there is no other way to avoid proposal to the fullest extent consistent with serious injury to the economy. Since any the need for prompt action. such guarantee would be subject to condi­ These principles are embodied in a bill, tions assuring a preferential status for the H.R. 8962, submitted to the Congress by the Government relative to other creditors or Board of Governors of the Federal Reserve shareholders in the event of insolvency, and System and introduced by Chairman Patman since guarantees would be available only by request. The bill approved by the Senate in emergencies, the existence of the authority Committee on Banking, Housing and should not in any real sense erode the dis­ Urban Affairs follows the same general ciplines of the private enterprise system. pattern, except for the make-up of the Rather, it should be regarded as a kind of Emergency Loan Guarantee Board. Both insurance policy to protect the general public the Senate bill and H.R. 8962 provide for a against a highly specialized risk. three-man board, with the Secretary of the Third, assistance should be provided Treasury as Chairman and the Chairman of through Federal guarantees of private loans the Board of Governors of the Federal rather than through outright advances of System as a member. They differ, however, public funds. Aside from its obvious budget as to the third member. Under H.R. 8962, savings, this approach would have the the other member would be the Secretary of advantage of assuring that experienced Commerce, but under the Senate bill he private lending officers will administer the would be the President of the Federal Re­ loans in accordance with Federal guidelines serve Bank of the district in which the pro­ and supervision. spective borrower is located. In the unlikely Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 655 event that two or more applications were while providing only one vote to the admin­ pending at one time involving borrowers in istration official who serves as chairman. different Federal Reserve districts, the make­ Thus it would create confusion as to whether up of the board would be uncertain. Per­ the administration or the Federal Reserve haps arrangements could be worked out to System should be held accountable for the divide the board’s responsibilities so that new board’s actions. Both the administration each of its actions would be related to a and the Federal Reserve System would be particular application, with one of the three given the appearance of responsibility with­ members changing according to the bor­ out the authority to exercise it. rower’s location. But such arrangements In other respects the bill reported to the would make it difficult to achieve a con­ Senate carries out the general recommenda­ sistent policy in passing on guarantee ap­ tions of the Board of Governors. Whatever plications. The Board of Governors strongly decision is reached about Lockheed, we prefers the provisions of H.R. 8962 in this hope that it will be possible for Congress to respect. agree upon a longer-range solution along I can well understand that Members of the lines of H.R. 8962, or the Senate bill Congress may be concerned about possible with the amendment we suggest. Experience abuse of the guarantee authority, and insist has demonstrated the need for this kind of therefore on safeguards to ensure careful protective umbrella for our economy. evaluation of proposed guarantees. Both H.R. 8962 and the Senate bill include such safeguards. Under either bill we can antici­ Statement by Arthur F. Burns, Chairman, pate very limited use of guarantees. Both Board of Governors of the Federal Reserve bills avoid the creation of a new bureaucracy System, before the Joint Economic Com­ which might develop an interest in drum­ mittee, July 23,1971. ming up business. Both bills provide for advance notice to Congress before a guar­ I am pleased to meet with you again today antee may be issued, to assure an opportu­ to report the views of the Board of Gover­ nity for congressional review. Both bills nors of the Federal Reserve System regard­ assure that the new board will have the ing the state of the economy at midyear. benefit of the independent judgment of the Since I last appeared before this com­ Chairman of the Board of Governors of mittee on February 19, it has become evident the Federal Reserve System. that a cyclical recovery of our economy has Both bills also recognize the key role of commenced. Indicators of future business the Secretary of the Treasury by designating activity, which were already rising in the him as chairman of the new board. If Con­ latter part of 1970, have strengthened fur­ gress objects to having two Cabinet officers ther. Comprehensive measures of current serving as members of the board, perhaps activity—such as the physical volume of the Chairman of the Securities and Ex­ industrial production, total employment, re­ change Commission, an independent agency, tail sales adjusted for price changes, and should be considered as an alternative to the total real output of goods and services— Secretary of Commerce. But the Senate have shown moderate improvement as the bill would allot two votes on the new board year has progressed. We are confident that to officials of the Federal Reserve System this recovery process will continue and who are to serve in an individual capacity, broaden in the months to come. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Nonetheless, some of the economic prob­ rapidly. And the experience of other in­ lems that have troubled us as a people over dustrial countries, particularly Canada and the recent past are still much in evidence. Great Britain, shouts warnings that even a Large increases in wages and prices persist long stretch of high and rising unemploy­ in the face of extensive unemployment of ment may not suffice to check the inflation­ labor and capital. The international balance ary process. of payments remains unsatisfactory; indeed, I shall return to the causes and implica­ our fragile export surplus has disappeared tions of this new rigidity in our economic in recent months. In financial markets, structure at a later point. Let me turn first, interest rates are responding to fears of con­ however, to a brief review of economic tinued high rates of inflation by moving up developments during the first half of 1971, again despite rapid monetary expansion. and to the supportive role that public policy And while business profits have improved has played—and will continue to play—in somewhat, they remain exceptionally low. the evolving economic recovery. The cost-push inflation we are experienc­ ing, and the widespread concern over con­ RECENT ECONOMIC DEVELOPMENTS tinued rapid inflation, are a grave obstacle The performance of the economy during the to the full economic improvement we all first half of 1971 is not easy to interpret be­ ardently seek. As long as inflation persists, cause many crosscurrents are always present consumers are likely to remain rather con­ in the vicinity of a cyclical turning point. In servative in their spending plans, fearing the addition, the rebound from the extended possibility of budgetary overcommitment. auto strike last fall and the accumulation of As long as inflation persists, businessmen are steel inventories in anticipation of a possible likely to remain cautious in their investment strike this summer have been distorting the policies, apprehensive that profit margins underlying trend. may erode despite higher prices. As long as Abstracting from these transitory influ­ inflation persists, financial investors will re­ ences, the record of the first half of 1971 is main reluctant to commit funds to long-term one of gradual, but quickening, recovery. securities unless they are compensated by a Late last year, only the construction industry higher interest rate. Expectations of inflation exhibited significant strength, as the sharp thus permeate the gamut of private decisions recovery in residential building that began to spend and invest, and this is restraining in the spring was joined by renewed ex­ the private efforts needed for vigorous and pansion in the construction programs of sustained economic recovery. State and local governments. Early this year A year or two ago it was generally ex­ consumer spending began to improve, with pected that extensive slack in resource use, increases of sales spreading to a wide variety such as we have been experiencing, would of consumer items. The sales of retailers lead to significant moderation in the in­ other than automobile dealers rose at about flationary spiral. This has not happened, a 10 per cent annual rate in the second either here or abroad. The rules of econom­ quarter—considerably more than normal ics are not working in quite the way they and well above the rise in consumer goods used to. Despite extensive unemployment in prices. Recently, activity in our factories our country, wage rate increases have not has also been stepped up, especially in con­ moderated. Despite much idle industrial sumer goods lines. The index of industrial capacity, commodity prices continue to rise production, adjusted to exclude autos and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 657 steel, rose at a 6 per cent annual rate be­ covery now underway. First, there is little tween March and June. evidence as yet of any material strengthen­ The improving trend of business is being ing in consumer or business confidence. supported by a faster rate of growth in Recent surveys of consumer attitudes show personal incomes. During the 3 months from only modest improvement, while uneasiness March through May, total personal income appears to persist among many businessmen rose at an annual rate of 8 per cent, com­ and investors regarding the effects of con­ pared with a 6 per cent rate over the previ­ tinuing rapid increases in labor costs on ous 6 months. Governmental transfer pay­ future profitability. Confidence is likely to ments, which have been contributing to re­ strengthen with the passage of time, as sales cent income growth, were particularly large and employment conditions improve. But during June when the retroactive increase in there is a danger that hesitation and uncer­ social security benefits was paid. The flow tainty will continue on an extensive scale of private wage and salary payments has until significant progress is made in moderat­ also quickened, in response to some gain in ing inflation. Greater success in the battle manhours worked as well as to continued against inflation is probably the most impor­ large increases in wage rates. And while tant single prerequisite of more rapid and employers have not yet re-entered the labor enduring economic expansion. market for appreciable numbers of new em­ Second, our international competitive ployees, further business improvement position appears to have deteriorated. In the should soon lead to faster employment first 5 months of 1971, imports spurted and growth also. our normal trade surplus vanished. This is Inventory investment promises to supply a distressingly poor performance in an an added source of economic impetus in the economy experiencing substantial under­ months ahead, after allowance for a prob­ utilization of its resources of labor and able rundown in steel stockpiles. Thus far in capital. The problem is dramatized by the the recovery, there has been little accumula­ success of foreign manufacturers in captur­ tion of inventories, apart from the restocking ing a rapidly expanding share of our auto­ by automobile dealers and strike-hedge buy­ mobile market. In the past 6 months, sales ing by steel merchants and users. But with of foreign models have accounted for 16 business sales rising, and the ratio of inven­ per cent of total U.S. sales and, in addition, tories to output and to sales declining in close to one-tenth of the American models many lines, we are coming closer to the time sold were produced in Canada. It may be when needs for larger inventories—of raw tempting to react to foreign competition by materials, work in process, and finished imposing added restrictions and quotas on goods—will begin to express themselves. imports, but such a policy would not serve The adjustment of stocks to higher levels of our national interests. The constructive activity will in turn generate further in­ course is to bring inflation under control and creases in output, employment, and incomes. to stimulate our businessmen to increase This is a common element in cyclical re­ their penetration of the expanding markets coveries, and I judge that we are approach­ abroad and to compete more effectively with ing that point in the current recovery proc­ foreign producers in our domestic markets. ess. I would favor consideration of new Govern­ There are grounds for concern, nonethe­ ment incentives toward this end. less, with regard to some features of the re­ Third, there is as yet no evidence of re­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 FEDERAL RESERVE BULLETIN a AUGUST 1971 surgence in business capital spending pro­ factors into account, however, the Federal grams. New orders for capital equipment budget is more stimulative now than a year show little—if any—recovery from the 1970 or two ago. The President submitted in Jan­ lows when allowance is made for rising uary a moderately expansive budget for prices. Construction contract footage for fiscal 1972, and since then the net effect of commercial and industrial buildings remains congressional actions has been to make it far below earlier highs. Official surveys of more stimulative. Social security benefits business spending plans for plant and equip­ have been liberalized, retroactive to the first ment show no increase, even in dollar terms, of the year, and the scheduled increase in for the remainder of this year. The hesitation social security taxes postponed for a year. in business investment may reflect the sizable The public service employment bill has be­ amounts of unused capacity that presently come law, and it appears probable that the exist. But it also results, I believe, from low military pay raise bill will be larger than business profits and uncertainty about the the budget proposals. These and other profit outlook. History indicates rather actions, along with increases in the so-called clearly that a vigorous, sustained economic uncontrollable items in the budget, as Chair­ recovery requires a strengthening trend in man McCracken reported to you, have business capital investment. served to raise estimated expenditures $5 We need to encourage business firms to billion above those originally proposed for undertake new capital investment; and I fiscal 1972, and to reduce estimated receipts strongly supported, therefore, the liberaliza­ by some $2 billion. tion of depreciation allowances recently I would not want to rule out additional adopted by the Treasury. I have also en­ fiscal stimulus if the recovery in the economy dorsed the general proposition that an in­ should prove to be well below normal pro­ vestment tax credit be adopted permanently. portions, particularly if such a move were At the moment, however, I am doubtful preceded or accompanied by a more effec­ about the wisdom of restoring the invest­ tive incomes policy. But I would urge cau­ ment tax credit—or of taking other stimu­ tion at the present time. Once confidence lative fiscal actions—in view of the state of becomes stronger, we may find that there is the Federal budget. In the fiscal year just enough fiscal stimulus already at work. ended, the budget deficit was in excess of And in any case, the fear of inflation is much $20 billion. It will remain very large in fiscal too great, and its potential effect on private 1972. Many influential citizens in the busi­ behavior too negative, to run the risk of ness and financial community view this sit­ taking new fiscal actions that would now uation with alarm, so that these large budget seem imprudent. deficits have become an important psy­ chological factor contributing both to in­ flationary expectations and to high interest Let me turn next to monetary policy, and rates. to the substantial contribution it has made to A large part of the budget deficit is, of stimulating economic activity over the past course, attributable to the shortfall in tax year. receipts stemming from sluggishness in the The shift toward monetary expansion economy. Some expenditures, notably on early in 1970 was rather promptly followed unemployment insurance and welfare, have by a resurgence in bank deposits and in the risen for this same reason. Even taking these flow of funds to other financial intermedi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 659 aries. As financial institutions rebuilt their expenditure plans and public psychology. liquidity, they became more eager lenders, The Federal Open Market Committee the availability of credit increased greatly, decided, therefore, to move very cautiously and interest rates declined. As a result, hous­ toward restraining the growth of the mone­ ing starts rebounded and State and local tary aggregates. government construction began to rise more With the benefit of hindsight, I now feel briskly. More receptive credit markets also that stronger action was warranted this enabled our business corporations to issue spring. For, as matters turned out, we ex­ new securities in record volume, thereby re­ perienced even faster monetary growth in building their liquidity and putting them­ the second quarter than had been antici­ selves in a financial position to expand pro­ pated, while interest rates also moved sub­ duction and the capital investment that they stantially higher. Present estimates indicate may wish to carry forward later on. that the narrowly defined money supply Late last year, as this committee knows, rose at an annual rate of 11 per cent in the there was a marked decline in the rate of second quarter. However, growth in a expansion of the narrowly defined money more broadly defined money supply—that supply—that is, currency plus demand is, currency, plus demand deposits, plus deposits. In these circumstances, a brief commercial bank time deposits other than period of more rapid expansion in the money large denomination CD’s—receded from an supply to compensate for the fourth quarter annual rate of 18 per cent in the first quarter shortfall seemed appropriate. The System, to a rate of 13 per cent in the next 3 months. consequently, provided bank reserves lib­ It is worth noting also that bank credit ex­ erally over the winter months, and interest pansion has been considerably more re­ rates—partly reflecting the increased supply strained than growth in any of the measures of reserves—declined sharply further. Ex­ of the money supply. Total bank credit rose pansion of the narrowly defined money sup­ at a 12 per cent annual rate during the first ply rose to a 9 per cent annual rate during quarter and then dropped to a 7 per cent the first quarter of this year; but the average rate in the second. growth rate for the fourth and first quarters It may be that the recent high growth combined, being little more than 6 per cent, rates in money balances, besides being a remained very close to the earlier trend in lagged response to the lower interest rates 1970. of this past winter, reflect some of the un­ This March and April, the Federal Re­ certainties of the general public about the serve System faced a dilemma. Information economic situation. To the extent that this available at that time suggested that high is true, the inclination to hold unusually rates of monetary growth might well persist large money balances should subside as under existing conditions in the money economic recovery becomes more evident. market. Interest rates, however, were already In any event, it is clear that recent mone­ displaying a tendency to rise, and vigorous tary growth rates are higher than is neces­ action to restrain monetary growth might sary or desirable over any length of time to have raised them sharply further. In view of sustain healthy economic expansion. The the delicate state of the economic recovery, Federal Reserve has, therefore, already which was just getting underway, it seemed taken some steps to reduce the growth rate desirable to prevent the possible adverse of bank reserves and thereby promote a effects of sharply higher interest rates on more moderate rate of monetary expansion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 FEDERAL RESERVE BULLETIN □ AUGUST 1971 These actions are partly responsible for higher discount rate will serve to moderate the recent rise in interest rates—particularly the demand for discounting at the Federal interest rates on very short-term market Reserve, that it will help prevent excessive securities. But it should be kept carefully growth of the monetary aggregates, and also in mind that the rise in interest rates since impart a degree of stability to interest rate March has occurred despite rapid rates of expectations. monetary growth and continuing large flows I continue to feel that the country needs of savings funds to depositary institutions. lower interest rates, and that lower rates— Factors other than monetary policy must especially on mortgages and State and local therefore be primarily responsible for the government securities—would contribute to upturn in interest rates this spring; they in­ a more vigorous economic recovery. But I clude in addition to indications that a busi­ am not hopeful that substantially lower ness recovery is developing, the prospect of interest rates can be achieved, until we as very large Treasury financing needs, deepen­ a nation make steady and meaningful pro­ ing concern about the unrelenting character gress in solving our inflation problem. of cost-push inflation, some apprehension over international financial developments, WAGES AND PRICES and not a little anticipatory borrowing in The inflation we are confronted with has the capital market on top of that currently become deeply rooted since its beginnings needed. The fear of inflation appears to have in 1965. The forces of excess demand that been especially important in the recent be­ originally led to price inflation disappeared havior of our money and capital markets, well over a year ago. Nevertheless, strong and a reversal of psychology may well be and stubborn inflationary forces, emanating required to achieve a significant downward from rising costs, linger on. I wish I could adjustment of interest rates. report that we are making substantial prog­ The rise in short-term interest rates dur­ ress in dampening the inflationary spiral. ing recent months had the effect of putting I cannot do so. Neither the behavior of the Federal Reserve discount rate, which prices nor the pattern of wage increases as had been reduced in a series of actions to yet provides evidence of any significant 4% per cent last February, well below the moderation in the advance of costs and rates at which funds could be obtained by prices. If growth in productivity accelerates banks in the open market. The effect of this with a quickening economy, some real discrepancy in rates was to encourage mem­ moderation may well develop in the months ber bank borrowing from the Reserve ahead. Even so, the residual rate of infla­ Banks—borrowing which was rising rapidly tion may well run above the characteristic and thereby providing reserves to support level of previous cyclical upswings. continued high rates of monetary expansion. Let me cite some of the evidence that Accordingly, as you know, the Board last leads me to this view. Thus far in 1971, week approved increases in Federal Reserve prices of newly produced goods and serv­ Bank discount rates to 5 per cent by a un­ ices in the private economy are still rising, animous vote of the five Board members on the average, at about a 5 per cent annual present at the meeting. I participated by rate—or at essentially the same rate as in telephone in the discussion leading to this 1969 and 1970. The rate of advance of action, and I want you to know that I consumer prices did diminish conspicuously supported it fully. Our hope is that the during the first 5 months of 1971, but most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 661 of this improvement is attributable to the eral expectation has developed on the part decline in mortgage interest rates. The of both business and labor that recessions, if wholesale price index for all commodities they occur at all, will prove brief and mild; has increased at an annual rate of 5 per and this expectation has influenced both the cent thus far this year, or twice last year’s strength of wage demands and the willing­ rate. Wholesale prices of industrial com­ ness of management to accept them. modities, moreover, have accelerated from A second factor contributing materially a 3^2 per cent increase last year to a 4 to the sustained character of wage rate in­ per cent rate thus far in 1971. creases in the current situation is the in­ Much the same picture emerges from a tensity and duration of the previous phase of review of changes in wages and salaries— excess demand. Consumer prices have been by far the most important component of rising steadily since 1965—much of the business costs. Wages in the private non­ time at an accelerating rate. Continued sub­ farm economy, adjusted for changes in stantial increases are now widely anticipated industrial composition and for overtime over the months and years ahead. In such an work, rose at about a 7 per cent annual rate environment, workers naturally seek wage in the first half of 1971—slightly more than increases sufficiently large to compensate in 1970 or 1969. This sustained sharp rise for the effects of past inflation on their real in wages during a period of substantial incomes, and to give some protection against economic slack contrasts markedly with our future price advances—besides providing experience in earlier recessions, when the for a measure of improvement in living rate of advance in wages typically dropped standards. Thoughtful employers are bound sharply or actually ceased. to have some sympathy with these efforts, Nor is the picture more encouraging when all the more so when they reckon—as they one inspects the trend of new agreements now generally do—that cost increases can reached in major collective bargaining settle­ probably be passed on to buyers grown ments—agreements which tend to establish accustomed to inflation. wage trends throughout industry. The wage Other factors too have been at work. The increases agreed to, for example, in the increased militancy of workers, whether automobile, can, and aluminum settlements, union or nonunion and whether in private and most recently by AT&T, amount to 12 or public service, has probably led to wider per cent or more for the first year. The full and faster diffusion of excessive wage rate extent of the increase contracted for later increases through the economy. I cannot years is not yet known, since it will depend help but wonder, also, whether our recent in part on the speed of future advances in experience with wage settlements in union­ the consumer price index. ized industries may not reflect a gradual It is important to inquire into the reasons shift in the balance of power at the bargain­ for this unusual behavior of wages and ing table. salaries. The answer is doubtless complex, Labor seems to have become more insist­ involving a myriad of structural, psycholo­ ent, more vigorous, and more confident in gical, and social changes. Ironically, our pursuing its demands, while resistance of national commitment to high employment businessmen to these demands appears to and economic prosperity, and our relative have weakened—perhaps because they fear success in achieving these objectives, ac­ the loss of market position that would be counts for part of the problem. For a gen­ caused by a long strike or because they Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

believe that their competitors too will give the special supply-demand problems that in to similar wage demands. More recently, have developed in the lumber and petroleum the balance of power—so important to the industries, and for bringing together labor outcome of wage bargaining—may have and business leaders in the steel industry for been influenced by expansion in the public a discussion of basic economic issues at the welfare programs which can be called upon outset of the current wage negotiations. The to help sustain a striking employee and his Construction Industry Stabilization Com­ family, valid though these programs may mittee, formed earlier this spring, appears to be on social grounds. And the hand of labor be having some success in moderating the may have been strengthened also by the staggering trend of wage settlements in that evident success that public sector employees industry. The periodic Inflation Alerts serve have had in recent years in winning large a useful function in stimulating public dis­ wage increases, frequently with the use of cussion of areas in which wage or price illegal strikes against the Government. decisions do not seem to conform to eco­ In my judgment, and in the judgment of nomic fundamentals. And the National the Board as a whole, the present inflation Commission on Productivity may yet pro­ in the midst of substantial unemployment vide the basis for important improvements poses a problem that traditional monetary in the cost trends of our economy. and fiscal remedies cannot solve as quickly In the Board’s judgment, these efforts as the national interest demands. That is need to be carried further—perhaps much what has led me, on various occasions, to further. The problem of cost-push inflation, urge additional governmental actions in­ in which escalating wages lead to escalating volving wages and prices—actions that prices in a never-ending circle, is the most would serve, by moderating the inflationary difficult economic issue of our time. It needs trend, to free the American economy from to be given top priority by our business and the hesitations that are now restraining its labor leaders as well as by the Government. great energy. There is much good will and statesmanship There has been some progress in this area in the ranks of business and labor, and it over the past year or two. The President would be wise for the Government to draw deserves credit for his efforts to deal with upon it more fully. □ 662 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Record of Policy Actions of the Federal Open Market Committee Records of policy actions taken by the Federal Open Market Com­ mittee at each meeting, in the form in which they will appear in the Board’s Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve B u lletin . The record for each meeting includes the votes on the policy deci­ sions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial condi­ tions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the B u lletin 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 four meetings held in 1971 were pub­ lished in the B u lletin s for April, pages 320-27; May, pages 391-98; June, pages 503-11; and July, pages 599-606. The record for the meeting held on May 11, 1971, follows: 663 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 FEDERAL RESERVE BULLETIN □ AUGUST 1971 MEETING HELD ON MAY 11, 1971 Authority to effect transactions in System Account. Preliminary estimates of the Commerce Department indicated that real output of goods and services had increased at an annual rate of 6.5 per cent in the first quarter, after having declined at a 3.9 per cent rate in the fourth quarter of 1970. The strength of the firstquarter rise was attributable primarily to a resumption of higher automobile production following the strike in that industry, and more moderate growth of real GNP appeared to be in prospect for the current quarter. In April nonfarm payroll employment again remained about un­ changed and the unemployment rate edged up to 6.1 from 6.0 per cent in the previous month. Tentative estimates indicated that indus­ trial production had risen somewhat. The latest data for retail sales suggested that there had been a pick-up in consumer spending, apart from the post-strike recovery in automobile purchases; revised figures revealed that nonautomotive sales had strengthened somewhat more over the course of the first quarter than had been thought earlier, and according to preliminary indications for April such sales were continuing at about the level they had reached in March. Private housing starts increased substantially further in March. Wholesale prices of industrial commodities rose sharply in April, after having advanced at a moderate pace earlier in the year. The rate of increase in the consumer price index slowed in March for the third successive month, reflecting to an important extent a further decline in mortgage interest costs. Wage rates continued to rise rapidly. Growth in real GNP was projected to slow in the second quarter mainly because of the waning effect of the post-strike recovery in the automobile industry. In light of the recent strengthening of retail sales, the projected amount of improvement in personal consumption expenditures had been raised somewhat, although it remained well below the gain recorded in the first quarter. The staff projections continued to suggest a further decline in defense spending and further substantial increases in residential construction expenditures and State and local government outlays—and also a step-up in business inventory accumulation, in part reflecting stockpiling of steel in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 665 anticipation of a possible strike in the industry when current wage contracts expire at the end of July. While the possibility of a steel strike continued to cloud the outlook for the second half of the year, the average rate of growth was still expected to be somewhat higher than in the second quarter if the duration of any such strike did not exceed 60 days or so. It appeared likely that the rate of growth in residential construction outlays would slacken as the year progressed. However, prospects were for further large increases in State and local government expenditures and mod­ erate gains in outlays for business fixed investment. Various develop­ ments were expected to help sustain expansion in consumer spending during the second half of the year: the recently enacted increase in social security benefits, under which payments retroactive to Jan­ uary 1 were scheduled to be made in late June; a possible increase in military pay scales around midyear; and a possible decline in the rate of personal saving in the third and fourth quarters. Although the U.S. merchandise trade balance improved somewhat in March, exports exceeded imports by only a small margin over the first quarter as a whole. The over-all payments balance was in ex­ tremely large deficit during the quarter on both the liquidity and offi­ cial settlements bases, and tentative estimates indicated that the deficit was again very large in April. In great part the deterioration of the payments balance in the first 4 months of 1971 reflected outflows of short-term capital, at first primarily in response to higher interest rates abroad and later also in response to a growing belief that there might be increases in the exchange rates for certain European currencies. Movements from the dollar into the German mark and some other European currencies, which had been particularly heavy in the first few days of April, subsided during the next 3 weeks. The atmosphere in foreign exchange markets remained uneasy, however, and a new wave of uncertainty was evidenced late in the month by an upsurge of demands for forward marks. On April 28 the German monetary au­ thorities announced that they were discontinuing forward sales of marks; and during the next few days, against the background of vari­ ous public statements and market rumors regarding possible exchange rate policies, upward pressures intensified on the exchange rate for the mark and for several other European currencies. Flows of funds, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 FEDERAL RESERVE BULLETIN □ AUGUST 1971 particularly into marks, reached massive proportions on May 4 and 5, and on the latter date the central banks of Germany, Switzerland, the Netherlands, Belgium, and Austria suspended sales of their cur­ rencies for dollars. On Sunday, May 9, announcements were made that exchange rates for the German mark and the Dutch guilder would be allowed to float for the time being, and that the Swiss franc and Austrian schilling were being revalued upward, by 7.07 and 5.05 per cent, respectively. On April 28 the Treasury announced the terms on which it would refund securities maturing in mid-May, including $5.8 billion held by the public. Holders of the maturing obligations were offered the choice of two relatively short-term notes—a new 15-month, 5 per cent note priced at par and a reopened issue of 3 Vi year, 53A per cent notes priced to yield about 5.88 per cent. Although the outcome of the financing was affected adversely by the developments in for­ eign exchange markets around the May 5 closing date for subscrip­ tions, the proportion of publicly held maturing issues redeemed for cash—about 30 per cent—was less than many observers had ex­ pected under the circumstances. The atmosphere of crisis in foreign exchange markets in early May added to uncertainties already prevailing in domestic financial mar­ kets. Interest rates on most types of short- and long-term securities had risen sharply in recent weeks, reflecting continued heavy demands for funds in capital markets and growing expectations on the part of market participants of higher rates to come. Contributing to the change in market psychology were favorable business developments, the recent firming of money market conditions, and the belief that the Federal Reserve would seek still firmer conditions in light of current rapid rates of growth in the monetary aggregates and of developments in international financial markets. Market rates on short-term Treasury bills shared in the general uptrend through most of April; for example, the rate on 3-month bills advanced from about 3.70 per cent on the day before the April 6 meeting of the Committee to slightly more than 4 per cent near the end of the month. Subsequently, however, the 3month rate declined—to about 3.85 per cent on the day before this meeting—partly as a result of large-scale bill purchases by foreign official accounts. Interest rates on conventional new-home mortgages declined fur­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 667 ther in March, but more slowly than earlier in the year. Yields in secondary markets for federally insured mortgages, which had leveled out in March, advanced in late April. Incomplete data for April sug­ gested that inflows of funds to nonbank thrift institutions were re­ maining close to the extraordinarily high monthly volume recorded in the first quarter. At commercial banks, inflows of consumer-type time and savings deposits slowed substantially in April from their very high firstquarter pace, partly in response to reductions in rates offered on such deposits. The volume of large-denomination CD’s outstanding de­ clined slightly. Business loans outstanding (including loans that had been sold to affiliates) changed little over the course of the month, after having declined in March. On April 22 and 23 a number of major banks announced an increase in their prime lending rates from 5V4 to 5V2 per cent, and by the date of this meeting the higher prime rate had become general. This increase, which followed a series of reductions during the fall and winter months, was attributed to the advance in short-term market interest rates that had occurred since the last such reduction in March. Commercial bank holdings of Treasury securities declined during April, following a substantial rise in the first quarter, and holdings of other securities expanded at a somewhat slower pace than earlier in the year. Banks continued to reduce their use of funds from nonde­ posit sources. Most of the reduction in April was associated with declines in head-office liabilities to foreign branches, largely in con­ nection with branch acquisitions of the $1.5 billion of special certifi­ cates offered to them by the Treasury for payment on April 9. Growth in total bank credit, as measured by the adjusted proxy series—dailyaverage member bank deposits, adjusted to include funds from non­ deposit sources—slowed further from March to April. Estimates of the average March level of both the narrow and broader measures of the money stock—Mx and M2—had been re­ vised upward somewhat since the preceding meeting of the Com­ mittee. It now appeared that Mx (private demand deposits plus cur­ rency in circulation) had increased at an annual rate of about 9 per cent over the first quarter as a whole 1 and that M2 (M1 plus commer­ 1 Calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 FEDERAL RESERVE BULLETIN □ AUGUST 1971 cial bank time deposits other than large-denomination CD’s) had grown at a rate of about 18 per cent. According to preliminary esti­ mates, both measures of the money stock expanded substantially fur­ ther from March to April—M1 considerably more and M<> slightly more than the Committee had deemed desirable at the time of its pre­ vious meeting. System open market operations immediately following the April 6 meeting of the Committee had been directed at achieving somewhat firmer conditions in the money market. Shortly thereafter, when available data indicated that Mu and to a lesser extent M2, were growing at rates in excess of those expected, some slight additional firming was sought. The Federal funds rate—which had fluctuated mostly around 3 3A per cent following the March meeting—moved up to a range around 4 lA per cent, where it remained through the end of April. Subsequently, however, despite large-scale reservesupplying operations by the System, the Federal funds rate advanced to a range around AV2 per cent. This additional firming occurred against the background of the crisis atmosphere in foreign exchange markets, and in part was a consequence of aggressive bidding for funds by major banks in an effort to position themselves against pos­ sible outflows of deposits. It was noted that the current outlook for the monetary and credit aggregates was more uncertain than usual because of the possible im­ pact on domestic financial markets of developments in foreign ex­ change markets. Staff analysis suggested that, if conditions in the money market were similar to those prevailing during most of April, inflows of time and savings deposits would slacken in the second quarter and growth in M2 and the bank credit proxy would moderate considerably from the first-quarter pace. Mlf on the other hand, was expected to expand at an annual rate of approximately 9 per cent over the second quarter, or about as rapidly as in the first quarter. The analysis suggested that, if money market conditions were some­ what firmer, expansion in M1 would slow gradually during coming months; but that—in part because of the sharp increase that had already occurred in April and in part because of lags in responses to changed money market conditions—Mx would still grow at a rate of about 8.5 per cent over the second quarter as a whole. It appeared that a sharp firming of money market conditions would be required Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 669 to slow expansion in M1 sufficiently during the rest of the second quarter to achieve a substantial moderation of growth over the quarter as a whole. In the discussion Committee members expressed concern both about the recent high rates of growth in the monetary aggregates and about the marked increases that had occurred in long-term interest rates. The view was widely held among members that expansion in Mx at the first-quarter pace for an extended period would be incon­ sistent with an orderly reduction in the rate of inflation. Also widely held, however, was the view that sharp increases in long-term rates at this juncture might have adverse consequences for spending, particularly in the residential construction and State and local govern­ ment sectors, and might thus pose a threat to the economic recovery under way. Although there were some rather marked differences in the stress that individual members placed on these two types of considerations, the Committee agreed that it would not be desirable at present either to revert to the money market conditions that had prevailed until the end of April or to seek the amount of firming that evidently would be required to achieve a substantial slowing of growth in the aggregates over the second quarter. Instead, the Committee decided that in the early part of the coming period, when open market oper­ ations in any case would be conditioned by even-keel considerations related to the current Treasury refunding, the objective should be to maintain the money market conditions currently prevailing. Similar conditions were to be sought later if the monetary aggregates ap­ peared to be on paths consistent with gradual moderation of growth during the second quarter. If the aggregates appeared to be deviating significantly from such paths, the objective was to be modified accord­ ingly—except that any firming of money market conditions directed at slowing excessive growth was to be carried out cautiously, with a view to avoiding undue reactions in capital markets. The Committee agreed that, in light of the uncertainties prevailing in domestic financial markets and in foreign exchange markets, the Account Manager should have more than the usual degree of dis­ cretion in making day-to-day operating decisions. However, the Com­ mittee also agreed that it would be advisable at present for the Sys­ tem to engage in purchases of longer-term Government securities on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 FEDERAL RESERVE BULLETIN □ AUGUST 1971 a smaller scale than in recent months in the process of meeting needs for reserves. 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 out­ put of goods and services rose substantially in the first quarter pri­ marily because of the resumption of higher automobile production, and more moderate growth appears to be in prospect for the current quarter. The unemployment rate remained high in April. Wage rates in most sectors are continuing to rise at a rapid pace. The rate of advance in consumer prices and in wholesale prices of industrial commodities moderated in the first quarter, but the rise in industrial prices stepped up again in April. The money stock both narrowly and broadly defined expanded substantially further in April but growth in bank credit slowed. Inflows of consumer-type time and savings funds to banks moderated, partly as a result of reductions in the interest rates offered by banks, but flows to nonbank thrift institutions continued heavy. Interest rates on most types of shortand long-term market securities rose sharply in April and early May, reflecting uncertainties about domestic, and more recently in­ ternational, financial prospects. The over-all balance of payments deficit in the first four months of 1971 was exceptionally large, in great part reflecting short-term capital outflows. Recently, after further large international flows of funds, several European central banks suspended sales of their currencies for dollars; subsequently, announcements were made that the German mark and Dutch guilder would be permitted to float for the time being, and that the Swiss franc and Austrian schilling were being revalued. In light of the foregoing developments, it is the policy of the Federal Open Market Committee to foster financial conditions conducive to the resumption of sustainable economic growth, while encouraging an orderly reduction in the rate of inflation, moderation of short-term capital outflows, and attainment of reasonable equilibrium in the country’s balance of payments. To implement this policy, the Committee seeks to moderate growth in monetary and credit aggregates over the months ahead, taking account of the current Treasury financing, developments in capital markets, and uncertainties in foreign exchange markets. System open market operations until the next meeting of the Com­ mittee shall be aimed initially at maintaining currently prevailing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

RECORD OF POLICY ACTIONS OF FOMC 671 money market conditions, and thereafter conducted with a view to maintaining bank reserves and money market conditions consistent with the above-cited objectives. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Kimbrel, Maisel, Mayo, Mitchell, Morris, Robertson, and Sherrill. Votes against this action: None. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions PURCHASE OF GOVERNMENT OBLIGATIONS BY ESTABLISHMENT OF THE BOARD FEDERAL RESERVE BANKS Sec. 2. There is created an Emergency Loan Guar­ antee Board (referred to in this Act as the “Board”) By Act of Congress approved July 2, 1971 composed of the Secretary of the Treasury, as Chair­ (Public Law 92-45), the authority of the Federal man, the Chairman of the Board of Governors of the Reserve Banks under section 14(b) of the Federal Federal Reserve System, and the Chairman of the Reserve Act to purchase and sell direct or fully Securities and Exchange Commission. Decisions of the Board shall be made by majority vote. guaranteed obligations of the United States di­ rectly from or to the United States was extended AUTHORITY through June 30, 1973. The text of the Act is as follows: Sec. 3. The Board, on such terms and conditions as it deems appropriate, may guarantee, or make commitments to guarantee, lenders against loss of AN ACT principal or interest on loans that meet the require­ To amend section 14(b) of the Federal Reserve ments of this Act. Act, as amended, to extend for two years the authority of Federal Reserve banks to purchase United States LIMITATIONS AND CONDITIONS obligations directly from the Treasury. Be it enacted by the Senate and House of Repre­ Sec. 4. (a) A guarantee of a loan may be made sentatives of the United States of America in Congress under this Act only if— assembled, That section 14(b) of the Federal Reserve (1) the Board finds that (A) the loan is needed Act, as amended (12 U.S.C. 355), is amended by to enable the borrower to continue to furnish goods striking out “July 1, 1971” and inserting in lieu or services and failure to meet this need would thereof “July 1, 1973” and by striking out “June 30, adversely and seriously affect the economy of or 1971” and inserting in lieu thereof “June 30, 1973”. employment in the Nation or any region thereof, (B) credit is not otherwise available to the borrower EMERGENCY LOAN GUARANTEE ACT under reasonable terms or conditions, and (C) the prospective earning power of the borrower, together By Act approved August 9, 1971 (Public Law with the character and value of the security pledged, furnish reasonable assurance that it will be able to 92-70), Congress established the Emergency Loan repay the loan within the time fixed, and afford Guarantee Board, which is empowered to guaran­ reasonable protection to the United States; and tee emergency loans not to exceed $250,000,000 (2) the lender certifies that it would not make to major business enterprises. The Board com­ the loan without such guarantee. prises the Secretary of the Treasury, as Chairman, (b) Loans guaranteed under this Act shall be pay­ the Chairman of the Board of Governors of the able in not more than five years, but may be renew­ Federal Reserve System, and the Chairman of the able for not more than an additional three years. (c)(1) Loans guaranteed under this Act shall bear Securities and Exchange Commission. The text of interest payable to the lending institutions at rates the Act is as follows: determined by the Board taking into account the reduction in risk afforded by the loan guarantee and AN ACT rates charged by lending institutions on otherwise comparable loans. To authorize emergency loan guarantees to major (2) The Board shall prescribe and collect a guaran­ business enterprises. tee fee in connection with each loan guaranteed under Be it enacted by the Senate and House of Repre­ this Act. Such fee shall reflect the Government’s ad­ sentatives of the United States of America in Congress ministrative expense in making the guarantee and the assembled, risk assumed by the Government and shall not be less than an amount which, when added to the amount of SHORT TITLE interest payable to the lender of such loan, produces a total charge appropriate for loan agreements of com­ Section 1. This Act may be cited as the “Emer­ parable risk and maturity if supplied by the normal gency Loan Guarantee Act”. capital markets. 672 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

SECURITY FOR LOAN GUARANTEES advance is made that, as of the date of the notice provided for in subparagraph (A), the borrower Sec. 5. In negotiating a loan guarantee under this is not in default under the loan agreement: Pro­ Act, the Board shall make every effort to arrange that vided, That if a default has occurred the lender the payment of the principal of and interest on any shall report the facts and circumstances relating plan guaranteed shall be secured by sufficient property thereto to the Board and the Board may expressly of the enterprise to collateralize fully the amount of and in writing waive such default in any case where the loan guarantee. it determines that such waiver is not inconsistent with the reasonable protection of the interests of REQUIREMENTS APPLICABLE TO LOAN the United States under the guarantee; and GUARANTEES (C) the borrower provides the Board with a plan setting forth the expenditures for which the ad­ Sec. 6. (a) A guarantee agreement made under vance will be used and the period during which this Act with respect to an enterprise shall require the expenditures will be made, and, upon the ex­ that while there is any principal or interest remaining piration of such periods, reports to the Board any unpaid on a guaranteed loan to that enterprise the instances in which amounts advanced have not enterprise may not— been expended in accordance with the plan. (1) declare a dividend on its common stock; or (f)(1) A guarantee agreement made under this (2) make any payment on its other indebtedness Act shall contain a requirement that as between the to a lender whose loan has been guaranteed under Board and the lender, the Board shall have a priority this Act. with respect to, and to the extent of, the lender’s The Board may waive either or both of the require­ interest in any collateral securing the loan and any ments set forth in this subsection, as specified in the earlier outstanding loans. The Board shall take all guarantee agreement covering a loan to any particular steps necessary to assure such priority against any enterprise, if it determines that such waiver is not other persons. inconsistent with the reasonable protection of the (2) As used in paragraph (1) of this subsection, interests of the United States under the guarantee. the term “collateral” includes all assets pledged under (b) If the Board determines that the inability of an loan agreements and, if appropriate in the opinion of enterprise to obtain credit without a guarantee under the Board, all sums of the borrower on deposit with this Act is the result of a failure on the part of the lender and subject to offset under section 68 of the management to exercise reasonable business prudence Bankruptcy Act. in the conduct of the affairs of the enterprise, the Board shall require before guaranteeing any loan to INSPECTION OF DOCUMENTS; AUTHORITY the enterprise that the enterprise make such manage­ TO DISAPPROVE CERTAIN TRANSACTIONS ment changes as the Board deems necessary to give the enterprise a sound managerial base. Sec. 7. (a) The Board is authorized to inspect and (c) A guarantee of a loan to any enterprise shall copy all accounts, books, records, memoranda, corre­ not be made under this Act unless— spondence, and other documents of any enterprise (1) the Board has received an audited financial which has received financial assistance under this Act statement of the enterprise; and concerning any matter which may bear upon (1) the (2) the enterprise permits the Board to have the ability of such enterprise to repay the loan within the same access to its books and other documents as time fixed therefor; (2) the interests of the United the Board would have under section 7 in the event States in the property of such enterprise; and (3) the the loan is guaranteed. assurance that there is reasonable protection to the (d) No payment shall be made or become due United States. The Board is authorized to disapprove under a guarantee entered into under this Act unless any transaction of such enterprise involving the dis­ the lender has exhausted any remedies which it may position of its assets which may affect the repayment have under the guarantee agreement. of a loan that has been guaranteed pursuant to the (e)(1) Prior to making any guarantee under this provisions of this Act. Act, the Board shall satisfy itself that the underlying (b) The General Accounting Office shall make a loan agreement on which the guarantee is sought detailed audit of all accounts, books, records, and contains all the affirmative and negative covenants transactions of any borrower with respect to which and other protective provisions which are usual and an application for a loan guarantee is made under customary in loan agreements of a similar kind, in­ this Act. The General Accounting Office shall report cluding previous loan agreements between the lender the results of such audit to the Board and to the and the borrower, and that it cannot be amended, or Congress. any provisions waived, without the Board’s prior con­ sent. MAXIMUM OBLIGATION (2) On each occasion when the borrower seeks an advance under the loan agreement, the guarantee Sec. 8. The maximum obligation of the Board under all outstanding loans guaranteed by it shall authorized by this Act shall be in force as to the funds not exceed at any time $250,000,000. advanced only if— (A) the lender gives the Board at least ten days’ EMERGENCY LOAN GUARANTEE FUND notice in writing of its intent to provide the bor­ rower with funds pursuant to the loan agreement; Sec. 9. (a) There is established in the Treasury an (B) the lender certifies to the Board before an emergency loan guarantee fund to be administered by 673 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 FEDERAL RESERVE BULLETIN □ AUGUST 1971 the Board. The fund shall be used for the payment of In addition, the Board shall submit to the Congress a the expenses of the Board and for the purpose of ful­ special report not later than June 30, 1973, which filling the Board’s obligations under this Act. Moneys shall include a full report of the Board’s operations in the fund not needed for current operations may be together with its recommendations with respect to invested in direct obligations of, or obligations that the need to continue the guarantee program beyond are fully guaranteed as to principal and interest by, the termination date specified in section 13. If the the United States or any agency thereof. Board recommends that the program should be con­ (b) The Board shall prescribe and collect a guaran­ tinued beyond such termination date, it shall state its tee fee in connection with each loan guaranteed by it recommendations with respect to the appropriate under this Act. Sums realized from such fees shall be board, agency, or corporation which should adminis­ deposited in the emergency loan guarantee fund. ter the program. (c) Payments required to be made as a conse­ quence of any guarantee by the Board shall be made TERMINATION from the emergency loan guarantee fund. In the event that moneys in the fund are insufficient to make such Sec. 13. The authority of the Board to enter into payments, in order to discharge its responsibilities, the any guarantee or to make any commitment to guaran­ Board is authorized to issue to the Secretary of the tee under this Act terminates on December 31, 1973. Treasury notes or other obligations in such forms and Such termination does not affect the carrying out of denominations, bearing such maturities, and subject any contract, guarantee, commitment, or other obli­ to such terms and conditions as may be prescribed by gation entered into pursuant to this Act prior to that the Board with the approval of the Secretary of the date, or the taking of any action necessary to pre­ Treasury. Such notes or other obligations shall bear serve or protect the interests of the United States in interest at a rate determined by the Secretary of the any amounts advanced or paid out in carrying on Treasury, taking into consideration the current aver­ operations under this Act. age market yield on outstanding marketable obliga­ tions of the United States of comparable maturities BANK HOLDING COMPANIES during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury The Board of Governors, effective September 1, is authorized and directed to purchase any notes and 1971, has amended Regulation Y, “Bank Holding other obligations issued hereunder and for that pur­ Companies”, by adding subparagraph (9) to sec­ pose he is authorized to use as a public debt trans­ action the proceeds from the sale of any securities tion 222.4(a) as a further implementation of its issued under the Second Liberty Bond Act, as regulatory authority with respect to nonbanking amended, and the purposes for which securities may activities of bank holding companies under sec­ be issued under that Act are extended to include any tion 4(c)(8) of the Bank Holding Company Act purchase of such notes and obligations. as amended by the 1970 Amendments. The new subparagraph embodies the Board’s determination FEDERAL RESERVE BANKS AS regarding insurance agency activities as being FISCAL AGENTS closely related to banking. The text of the amend­ Sec. 10. Any Federal Reserve bank which is re­ ment reads as follows: quested to do so shall act as fiscal agent for the Board. Each such fiscal agent shall be reimbursed by the Board for all expenses and losses incurred by it in AMENDMENT TO REGULATION Y acting as agent on behalf of the Board. Effective September 1, 1971, section 222.4(a) is amended by changing the period at the end PROTECTION OF GOVERNMENT’S INTEREST thereof to a semicolon and adding subparagraph Sec. 11. (a) The Attorney General shall take such (9) as set forth below: action as may be appropriate to enforce any right accruing to the United States or any officer or agency SECTION 222.4—NONBANKING thereof as a result of the issuance of guarantees under this Act. Any sums recovered pursuant to this section ACTIVITIES shall be paid into the emergency loan guarantee fund. (b) The Board shall be entitled to recover from (a) Activities closely related to banking or the borrower, or any other person liable therefor, the managing or controlling banks. * * * The fol­ amount of any payments made pursuant to any guar­ lowing activities have been determined by the antee agreement entered into under this Act, and upon Board to be so closely related to banking or man­ making any such payment, the Board shall be subro­ aging or controlling banks as to be a proper gated to all the rights of the recipient thereof. incident thereto: REPORTS * * ❖ * * Sec. 12. The Board shall submit to the Congress (9) acting as insurance agent or broker in annually a full report of its operations under this Act. offices at which the holding company or its sub­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 675 sidiaries are otherwise engaged in business (or in SECTION 265.2—SPECIFIC FUNCTIONS an office adjacent thereto) with respect to the DELEGATED TO BOARD EMPLOYEES following types of insurance: AND FEDERAL RESERVE BANKS (i) any insurance for the holding company and * ❖ * * ❖ its subsidiaries; (b) The General Counsel of the Board (or, in (ii) any insurance that (A) is directly related his absence, the Acting General Counsel) is to an extension of credit by a bank or a bank- authorized: related firm of the kind described in this regula­ * ❖ * * ❖ tion, or (B) is directly related to the provision of (5) Pursuant to the provisions of Part 261 of other financial services by a bank or such a bank- this chapter, to make available information of the related firm, or (C) is otherwise sold as a matfer Board of the nature and in the circumstances of convenience to the purchaser, so long as the described in § 261.6(b) and § 261.7 of that Part. premium income from sales within this subclause (C) does not constitute a significant portion of the TRUTH IN LENDING aggregate insurance premium income of the hold­ OPEN END CREDIT—CHANGE IN THE ing company from insurance sold pursuant to this METHOD OF DETERMINING THE clause (ii); BALANCE ON WHICH FINANCE (iii) any insurance sold in a community that CHARGES ARE COMPUTED (A) has a population not exceeding 5,000, or (B) the holding company demonstrates has inadequate The creditor of an open end credit account plan desires to change his method of determining insurance agency facilities. the balance on which finance charges are com­ puted from a method in which payments and credits made during the billing cycle are not de­ DELEGATION OF AUTHORITY ducted in determining such balance to a method The Board of Governors has amended its Rules in which such payments and credits are deducted Regarding Delegation of Authority, effective July in determining such balance. This change results in a reduction in finance charges to the customer, 29, 1971, in order to expedite and facilitate its where full payment of the account is deferred. The response to requests for information of the Board, question arises whether notice of such change is by delegating to the General Counsel of the Board required to be sent to customers of open end authority (1) to make available to other agencies credit accounts under § 226.7(e), since that sec­ of the United States for their use where necessary tion also provides that prior notice is not required in their official duties certain information regard­ if the only change is a reduction in the “periodic ing supervised institutions, and (2) to determine, rate or rates, or in any minimum, fixed, check in any case of service of subpoena on an officer, service, transaction, activity, or similar charge ap­ employee, or agent of the Board or a Federal plicable to the account.” Reserve Bank, the response to such subpoena. The Where a creditor changes his method of deter­ text of the amendment reads as follows: mining the balance on which finance charges are computed from a method in which payments and credits made during the billing cycle are not AMENDMENT TO deducted in determining such balance, to a method RULES REGARDING DELEGATION in which such payments and credits are deducted OF AUTHORITY in determining such balance, § 226.7(e) requires no prior notice of such change in terms, provided Effective July 29, 1971, section 265.2(b) is no other changes in terms applicable to the ac­ amended by adding subparagraph (5) as set forth count are made simultaneously which would re­ below: quire § 226.7(e) notification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 FEDERAL RESERVE BULLETIN □ AUGUST 1971 ORDERS UNDER SECTION 3 OF $46 million and ranks eighth in size in the Phoenix BANK HOLDING COMPANY ACT area. (All banking data are as of December 31, 1970, and reflect holding company formations and CONTINENTAL BANCOR, INC., acquisitions approved through May 31, 1971.) PHOENIX, ARIZONA The proposal involves only a shift in ownership In the matter of the application of Continental of Bank from a Texas corporation to Applicant, Bancor, Inc., Phoenix, Arizona, for approval of and would not adversely affect competition in any action to become a bank holding company through relevant area. the acquisition of 69 per cent or more of the vot­ The financial and managerial resources and fu­ ing shares of Continental Bank, Phoenix, Arizona. ture prospects of Applicant and Bank are con­ sistent with approval of the application. Although Applicant would have substantial debt in relation Order Approving Action to Become to its net worth, several considerations diminish a Bank Holding Company the importance of this factor. The management of There has come before the Board of Governors, Applicant is composed of senior officials of Bank pursuant to section 3(a)(1) of the Bank Holding who have exhibited strong managerial abilities Company Act of 1956 (12 U.S.C. 1842(a)(1)), since Bank’s establishment in 1964. Further, Bank and section 222.3(a) of Federal Reserve Regula­ has shown an earnings record which coupled with tion Y (12 CFR 222.3(a)), the application of its potential earnings indicate Applicant’s ability to Continental Bancor, Inc., Phoenix, Arizona (“Ap­ service its debt without significant danger to the plicant”), for the Board’s prior approval of action condition of Bank. Other considerations that lead whereby Applicant would become a bank holding to the conclusion that Applicant’s debt position company through the acquisition of 69 per cent or does not preclude approval of the application are more of the voting shares of Continental Bank, the adequacy of Bank’s capital and a definite debt Phoenix, Arizona (“Bank”). repayment program by Applicant. Considerations As required by section 3(b) of the Act, the relating to the convenience and needs of the com­ Board gave written notice of receipt of the applica­ munities to be served lend weight toward approval tion to the Superintendent of Banks for Arizona of the application since the proposal involves the and requested his views and recommendation. The substitution of local for non-local ownership and Superintendent recommended approval of the such ownership will be more likely to be aware of application. and sensitive to the banking needs of the Phoenix Notice of receipt of the application was pub­ area. It is the Board’s judgment that the proposed lished in the Federal Register on May 13, 1971 transaction would be in the public interest, and (36 Federal Register 8830), providing an oppor­ that the application should be approved. tunity for interested persons to submit comments It is hereby ordered, for the reasons set forth and views with respect to the proposal. A copy of in the findings summarized above, that said appli­ the application was forwarded to the United States cation be and hereby is approved, provided that Department of Justice for its consideration. The the action so approved shall not be consummated time for filing comments and views has expired (a) before the thirtieth calendar day following and all those received have been considered by the the date of this Order, or (b) later than three Board. months after the date of this Order, unless such The Board has considered the application in the time shall be extended for good cause by the light of the factors set forth in section 3(c) of the Board, or by the Federal Reserve Bank of San Act, including the effect of the proposed acquisi­ Francisco pursuant to delegated authority. tion on competition, the financial and managerial By order of the Board of Governors, July 15, resources and future prospects of Applicant and 1971. Bank, and the convenience and needs of the com­ munities to be served. Upon such consideration, Voting for this action: Vice Chairman Robertson and Governors Daane, Maisel, and Sherrill. Absent the Board finds that: and not voting: Chairman Burns and Governors Applicant is a nonoperating corporation formed Mitchell and Brimmer. for the purpose of acquiring Bank, and is owned (Signed) Kenneth A. Kenyon, and managed by a group of directors and officers Deputy Secretary. of Bank who have extensive banking experience in the Phoenix area. Bank has deposits of about [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 677 UNITED VIRGINIA BANKSHARES State. (Banking data are as of December 31, INCORPORATED, 1970, and reflect holding company formations and RICHMOND, VIRGINIA acquisitions approved by the Board to May 31, 1971.) Bank ($21 million deposits) is the smallest In the matter of the application of United banking organization in the Roanoke area (4.8 Virginia Bankshares Incorporated, Richmond, Vir­ per cent of deposits), where it competes with ginia, for approval of acquisition of 80 per cent offices of three independent banks and two bank or more of the voting shares of the successor by holding companies. Although Applicant is the merger to Security National Bank of Roanoke, largest bank organization in the State, its nearest Roanoke, Virginia. subsidiary is more than 40 miles from Bank, and neither it nor Applicant’s other subsidiaries com­ Order Approving Acquisition of Bank pete in the Roanoke area. Because of the distances Stock by Bank Holding Company involved, Virginia law, and other facts of record, the development of significant competition is con­ There has come before the Board of Governors, sidered unlikely. In view of the foregoing, Appli­ pursuant to section 3(a)(3) of the Bank Holding cant’s entry into Roanoke through acquisition of Company Act of 1956 (12 U.S.C. 1842(a)(3)) the smallest bank should serve to enhance com­ and section 222.3(a) of Federal Reserve Regu­ petition and will not have a significantly adverse lation Y (12 CFR 222.3(a)), an application by effect on competition in any relevant area. United Virginia Bankshares Incorporated, Rich­ The financial condition of Applicant and its mond, Virginia (“Applicant”), for the Board’s subsidiaries and Bank is regarded as satisfactory. prior approval of the acquisition of 80 per cent or Consequently, considerations under these factors more of the voting shares of the successor by are consistent with approval. merger to Security National Bank of Roanoke, The financial resources and increased com­ Roanoke, Virginia (“Bank”). The merger has petitive capacity of Bank resulting from approval significance only as a means of acquiring all of the of the application would benefit residents of the shares of Bank; the proposal is therefore treated pertinent market area. Accordingly, considerations herein as one to acquire shares of Bank. relating to the capacity of Bank to meet the con­ As required by section 3(b) of the Act, the venience and needs of the community weigh Board gave written notice of receipt of the appli­ slightly in favor of approval. It is the Board’s cation to the Comptroller of the Currency, and judgment that consummation of the proposal requested his views and recommendation. The would be in the public interest and that the appli­ Comptroller offered no objection to approval of cation should be approved. the acquisition. Notice of receipt of the application was pub­ It is hereby ordered, for the reasons set forth above, that said application be and hereby is lished in the Federal Register on May 26, 1971 approved, provided that the acquisition so ap­ (36 Federal Register 9581), providing an oppor­ proved shall not be consummated (a) before the tunity for interested persons to submit comments thirtieth calendar day following the date of this and views with respect to the proposal. A copy of Order or (b) later than three months after the the application was forwarded to the United States date of this Order, unless such period is extended Department of Justice for its consideration. Time for good cause by the Board, or by the Federal for filing comments and views has expired and all Reserve Bank of Richmond pursuant to delegated those received have been considered. authority. The Board has considered the application in the By order of the Board of Governors, July 15, light of the factors set forth in section 3(c) of the 1971. Act, including the effect of the proposed acqui­ sition on competition, the financial and managerial Voting for this action: Vice Chairman Robertson resources and future prospects of the Applicant and Governors Daane, Maisel, Brimmer, and Sherrill. and the banks concerned, and the convenience and Absent and not voting: Chairman Burns and Gov­ ernor Mitchell. needs of the communities to be served, and finds that: (Signed) Kenneth A. Kenyon, Applicant, Virginia’s largest banking organ­ Deputy Secretary. ization, controls 11 banks with deposits of $1.1 billion, or 13.9 per cent of the deposits in the [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 FEDERAL RESERVE BULLETIN □ AUGUST 1971 T G BANCSHARES CO., adjusted to reflect holding company formations ST. LOUIS, MISSOURI and acquisitions approved by the Board to date.) Bank ($4.7 million deposits), with 9.9 per cent In the matter of the application of T G Bancof the area’s deposits, is the fifth largest of the shares Co., St. Louis, Missouri, for approval of seven banks located in its primary service area, acquisition of 53.6 per cent or more of the voting which is approximated by the northwest portion shares of Bank of House Springs, House Springs, of Jefferson County. Applicant’s only subsidiary Missouri. bank, the Tower Grove Bank and Trust Company, is located 24 miles from Bank in St Louis, and Order Approving Acquisition of Bank does not compete with Bank to any significant Stock by Bank Holding Company extent. In light of the facts of record, including the distance separating Bank from Applicant’s sub­ There has come before the Board of Governors, sidiary, the presence of numerous banking alter­ pursuant to section 3(a)(3) of the Bank Holding natives, and Missouri’s restrictive branching law, Company Act of 1956 (12 U.S.C. 1842(a)(3)) it does not appear that consummation of the and section 222.3(a) of Federal Reserve Regu­ proposal herein would foreclose the development lation Y (12 CFR 222.3(a)), an application by of potential competition. Affiliation with Appli­ T G Bancshares Co., St. Louis, Missouri (“Appli­ cant should enhance Bank’s ability to compete cant”), a bank holding company, for the Board’s more effectively within the St. Louis banking prior approval of the acquisition of an additional market. It does not appear, therefore, that existing 53.6 per cent or more of the voting shares of competition would be eliminated or significant Bank of House Springs, House Springs, Missouri potential competition foreclosed by consummation (“Bank”). Applicant presently owns 24.99 per of Applicant’s proposal, or that there would be cent of the voting shares of Bank. undue adverse effects on any bank in the area As required by section 3(b) of the Act, the involved. Board gave written notice of receipt of the appli­ Based upon the foregoing, the Board concludes cation to the Commissioner of Finance for the that consummation of the proposed acquisition State of Missouri, and requested his views and rec­ would not have significant adverse effects on com­ ommendation. The Commissioner recommended petition in any relevant area. Considerations re­ approval of the application. lating to the financial and managerial resources Notice of receipt of the application was pub­ and future prospects are regarded as consistent lished in the Federal Register on May 18, 1971 with approval of the application as they relate to (36 Federal Register 9043), providing an oppor­ Applicant and its subsidiary, and lend weight in tunity for interested persons to submit comments support of approval as they relate to Bank, since and views with respect to the proposal. A copy of affiliation with Applicant would insure Bank’s the application was forwarded to the United States future financial stability and provide Bank with Department of Justice for its consideration. Time greater management depth. Applicant proposes to for filing comments and views has expired and all expand Bank’s lending operations and to assist those received have been considered. Bank in establishing new services such as business The Board has considered the application in development and trust services. The residents of the light of the factors set forth in section 3(c) Bank’s service area should benefit from these serv­ of the Act, including the effect of the proposed ices. Consequently, considerations relating to the acquisition on competition, the financial and man­ convenience and needs of the area lend some addi­ agerial resources and future prospects of the Ap­ tional weight toward approval. It is the Board’s plicant and the banks concerned, and the con­ judgment that consummation of the proposed ac­ venience and needs of the communities to be quisition would be in the public interest, and that served, and finds that: the application should be approved. Applicant, the eighth largest bank holding com­ It is hereby ordered, for the reasons set forth pany and the ninth largest banking organization in above, that said application be and hereby is Missouri, has one subsidiary bank with $125.7 approved, provided that the acquisition so ap­ million in deposits, representing 1.1 per cent of proved shall not be consummated (a) before the the total commercial bank deposits in the State. thirtieth calendar day following the date of this (All banking data are as of December 31, 1970, Order or (b) later than three months after the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 679 date of this Order, unless such period is extended their views and recommendations. The Commis­ for good cause by the Board, or by the Federal sioner and the Comptroller recommended approval Reserve Bank of St. Louis pursuant to delegated of the application. authority. Notice of receipt of the application was pub­ By order of the Board of Governors, July 15, lished in the Federal Register on May 1, 1971 (36 1971. Federal Register 8274), providing an opportunity for interested persons to submit comments and Voting for this action: Vice Chairman Robertson, and Governors Daane, Maisel, Brimmer, and Sherrill. views with respect to the proposal. A copy of the Absent and not voting: Chairman Burns and Gov­ application was forwarded to the United States ernor Mitchell. Department of Justice for its consideration. Time (Signed) Kenneth A. Kenyon, for filing comments and views has expired and all Deputy Secretary. those received have been considered by the Board. The Board has considered the application in [seal] the light of the factors set forth in section 3(c) of the Act, including the effect of the proposed FIRST BANCORP, INC., acquisition on competition, the financial and man­ CORSICANA, TEXAS agerial resources and future prospects of the Ap­ In the matter of the application of First Ban­ plicant and the banks concerned, and the con­ corp, Inc., Corsicana, Texas, for approval of ac­ venience and needs of the communities to be tion to become a bank holding company. served, and finds that: Applicant is a newly-formed organization and Order Approving Action to Become has no operating history. Upon acquisition of a Bank Holding Company Corsicana ($40 million of deposits), Applicant would become the sixth largest bank holding com­ There has come before the Board of Governors, pany in the State and would control about 0.2 pursuant to section 3(a)(1) of the Bank Holding per cent of the commercial bank deposits in the Company Act of 1956 (12 U.S.C. 1842(a) (1)) State. (All banking data are as of December 31, and section 222.3(a) of Federal Reserve Regu­ 1970, and reflect holding company acquisitions lation Y (12 CFR 222.3(a)), an application by approved through May 31, 1971.) First Bancorp, Inc., Corsicana, Texas (“Appli­ Corsicana Bank, the lead bank, is located in cant”), for the Board’s prior approval of action downtown Corsicana, and is the largest of ten whereby Applicant would become a bank holding banks in the Corsicana market by virtue of control company through the acquisition of the successor of 56.8 per cent of deposits in that market. (Corsi­ by merger to The First National Bank of Corsi­ cana Bank will be merged into a nonoperating cana, Corsicana, Texas (“Corsicana Bank”). As bank which has significance only as a vehicle to an incident to the merger, Applicant would acquire accomplish the acquisition of all the shares of the beneficial ownership of at least 24 per cent Corsicana Bank. Acquisition of the shares of the but less than 25 per cent of the shares of each of resulting bank is treated as an acquisition of the the following three Texas banks: Citizens National shares of Corsicana Bank.) Streetman Bank ($2 Bank in Ennis (24.7 per cent); Citizens State million of deposits), located 18 miles south of Bank, Malakoff (24.0 per cent); and First Na­ Corsicana is also in the Corsicana market and has tional Bank of Streetman (24.0 per cent). 2.3 per cent of deposits there. The described shares of the three banks other Citizens State Bank ($3 million of deposits), than Corsicana Bank are owned by Cornavco Cor­ is located in Malakoff which is 27 miles east of poration, all the shares of which are held by Corsicana and is in the Athens-Malakoff market trustees for the benefit of the shareholders of Cor­ which covers approximately the area within a 12sicana Bank. As a result of the merger, Applicant will succeed to beneficial ownership of all of the mile radius of Athens. In this market, Citizens shares of Cornavco Corporation and, indirectly, of State Bank, with 9.4 per cent of deposits, ranks the described shares of the three banks. fourth among six banks located there. In the Ennis As required by section 3(b) of the Act, the market, which is adjacent to the Corsicana market, Board gave written notice of receipt of the appli­ Citizens National Bank in Ennis ($14 million of cation to the Comptroller of the Currency and the deposits) is the largest of three banks and holds Texas Commissioner of Banking and requested 57.6 per cent of the deposits. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Corsicana Bank, through Cornavco, acquired an FIRST COMMERCIAL BANKS INC., indirect interest in Malakoff Bank in 1966, Ennis ALBANY, NEW YORK Bank in 1967, and Streetman Bank in 1969. It In the matter of the application of First Com­ appears that Corsicana Bank exerts some influence mercial Banks Inc., Albany, New York, for ap­ over the operations of these three banks. However, proval of action to become a bank holding com­ the Board notes Applicant’s assertion that “neither pany through the acquisition of 100 per cent of Applicant nor FNBC [Corsicana Bank] controls the voting shares (less directors’ qualifying shares) the election of directors of any such banks or of the successor by merger to National Commer­ exercises a controlling influence over their manage­ cial Bank and Trust Company, Albany, New York, ment or policies.” It appears that the proposed and 100 per cent of the voting shares of First transaction is essentially a corporate reorgani­ Trust & Deposit Company, Syracuse, New York. zation of existing interests and reflects neither expansion of the group nor an increase in the banking resources controlled by it. On the facts Order Approving Action to Become presented, consummation of Applicant’s proposal a Bank Holding Company is not expected to have a significant effect on There has come before the Board of Governors, existing or potential banking competition. pursuant to section 3(a)(1) of the Bank Holding On the basis of the record before it, the Board Company Act of 1956 (12 U.S.C. 1842(a)(1)) concludes that consummation of the proposal and section 222.3(a) of Federal Reserve Regu­ herein would not have a substantially adverse lation Y (12 CFR 222.3(a)), an application by effect on competition in any relevant area. Con­ First Commercial Banks Inc., Albany, New York siderations relating to financial and managerial [formerly, Heartland, Central N.Y. Corp.], for the resources and prospects as they relate to Applicant, Board’s prior approval of action whereby Appli­ Corsicana Bank, and the three associated banks cant would become a bank holding company are consistent with approval of the application. through the acquisition of 100 per cent of the Applicant will begin operations in a satisfactory voting shares (less directors’ qualifying shares) of financial condition and will be able to draw man­ the successor by merger to National Commercial agement expertise from Corsicana Bank. Appli­ Bank and Trust Company, Albany, New York cant’s prospects, which depend largely on those of (“National Commercial”), and 100 per cent of the Corsicana Bank, are favorable. Factors relating to voting shares of First Trust & Deposit Company, the convenience and needs of the relevant markets Syracuse, New York (“First Trust”). are consistent with approval. It is the Board’s As required by section 3(b) of the Act, the judgment that the proposed transaction would be Board gave written notice of receipt of the appli­ in the public interest and that the application cation to the Comptroller of the Currency and to should be approved. the Superintendent of Banks of the State of New It is hereby ordered, for the reasons summa­ York, and requested their views and recommen­ rized above, that said application be and hereby is dations. The Comptroller did not object to ap­ approved, provided that the acquisition so ap­ proval of the application, and the Superintendent proved shall not be consummated (a) before the recommended approval. 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 date lished in the Federal Register on June 3, 1971 (36 of this Order, unless such period is extended for Federal Register 10825), providing an opportunity good cause by the Board, or by the Federal Reserve for interested persons to submit comments and Bank of Dallas pursuant to delegated authority. views with respect to the proposal. A copy of the By order of the Board of Governors, July 15, application was forwarded to the United States 1971. Department of Justice for its consideration. Time Voting for this action: Vice Chairman Robertson for filing comments and views has expired and all and Governors Daane, Maisel, and Sherrill. Absent those received have been considered. and not voting: Chairman Burns and Governors Mitchell and Brimmer. The Board has considered the application in the light of the factors set forth in section 3(c) of the (Signed) Kenneth A. Kenyon, Act, including the effect of the proposed acquisi­ Deputy Secretary. tion on competition, the financial and managerial [seal] resources and future prospects of the Applicant Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 681 and the banks concerned, and the convenience and petent managements and favorable prospects. It needs of the communities to be served, and finds appears that Applicant will begin operations in that: satisfactory condition and with competent manage­ Applicant is a newly-organized corporation. ment; its prospects, which are largely dependent Upon consummation of this proposal, Applicant upon those of its two proposed subsidiaries, also will control $1.0 billion in deposits, representing appear favorable. Affiliation of the two banks 1.2 per cent of total commercial bank deposits in should enable each to offer improved and ex­ the State, and would become the fourteenth largest panded services. ,It is expected that National Com­ banking organization and seventh largest multi­ mercial’s specialization in financial services for bank holding company in New York. (Banking local governments would be extended to Syracuse, data, unless otherwise noted, are as of December and that First Trust would be able to offer more 30, 1970, and reflect holding company acquisitions convenient international banking services. It is the approved through June 30, 1971.) Board’s judgment that the proposed transaction is National Commercial ($705 million in deposits), in the public interest, and that the application has 58 offices and operates throughout the Fourth should be approved. Banking District of New York. It controls 30 It is hereby ordered, for the reasons summa­ per cent (as of June 30, 1970) of the commercial rized above that said application be and hereby is bank deposits in the relevant market, which is approved, provided that the transaction so approved approximated by all of Albany, Schenectady and shall not be consummated (a) before the thirtieth Rensselaer Counties and the southern portion of calendar day following the date of this Order or Saratoga County. On the basis of deposits, it is (b) later than three months after the date of this the second largest of the fifteen banking organi­ Order, unless such time is extended for good cause zations in that market. by the Board or by the Federal Reserve Bank of New York pursuant to delegated authority. First Trust ($300 million in deposits) operates By order of the Board of Governors, July 21, 34 offices all of which are located in the Sixth 1971. Banking District. It controls 30 per cent (as of June 30, 1970) of the commercial bank deposits Voting for this action: Chairman Burns and in the relevant market, which is approximated by Governors Robertson, Maisel, and Sherrill. Absent and not voting: Governors Mitchell, Daane, and Oswego and Onondaga Counties and the northern Brimmer. half of Madison County. On the basis of deposits, it is the largest of the eleven banking organizations (Signed) Kenneth A. Kenyon, in that market. Deputy Secretary. National Commercial and First Trust do not [seal] compete with each other to any meaningful extent, and it appears unlikely they would do so in the BANK SHARES INCORPORATED, near future. No office of one is located within MINNEAPOLIS, MINNESOTA 50 miles of any office of the other, and New York law prevents either bank from branching or merg­ In the matter of the application of Bank Shares ing outside its Banking District. It appears that Incorporated, Minneapolis, Minnesota, for ap­ affiliation of the two banks in a holding company proval of acquisition of 80 per cent or more of system would not have an undue adverse effect on the voting shares of Olmsted County Bank & Trust other banks in the relevant markets, and would Company, Rochester, Minnesota. have the procompetitive advantage of creating an organization with sufficient resources to compete Order Approving Acquisition of Bank with large banking organizations in upstate New Stock by Bank Holding Company York as well as those based in New York City There has come before the Board of Governors, which are seeking to expand throughout the pursuant to section 3(a)(3) of the Bank Holding State. On the basis of the record before it, the Company Act of 1956 (12 U.S.C. 1342(a)(3)) Board concludes that consummation of the pro­ and section 222.3(a) of Federal Reserve Regu­ posal would not have a significant adverse effect lation Y (12 CFR 222.3(a)), an application by on competition in any relevant market. Bank Shares Incorporated, Minneapolis, Minne­ The financial condition of each bank appears sota (“Applicant”), a registered bank holding satisfactory; both are regarded as having com­ company, for the Board’s prior approval of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 FEDERAL RESERVE BULLETIN □ AUGUST 1971 acquisition of 80 per cent or more of the voting petition between Bank and any of Applicant’s shares of Olmsted County Bank & Trust Company, present subsidiaries. Indeed, consummation of the Rochester, Minnesota (“Bank”). proposal herein may serve to enhance competition As required by section 3(b) of the Act, the between Bank and the two larger banks in the Board gave written notice of receipt of the appli­ market without adverse affects on the five smaller cation to the Minnesota Commissioner of Banks, banks within the market. On the basis of the and requested his views and recommendation. The record before it, the Board concludes that con­ Commissioner responded that he had no objection summation of the proposed acquisition would not to approval of the application. adversely affect competition in any relevant area. Notice of receipt of the application was pub­ The financial and managerial resources and lished in the Federal Register on May 29, 1971 future prospects of Applicant, its subsidiary banks, (36 Federal Register 9894), providing an oppor­ and Bank are regarded as satisfactory. Based on tunity for interested persons to submit comments the record, it appears that Applicant is in a better and views with respect to the proposal. A copy of position to provide any needed financial and the application was forwarded to the United States managerial support to the Bank, than the current Department of Justice for its consideration. Time owner of the Bank. The major banking needs of for filing comments and views has expired and all the Rochester area appear to be adequately served those received have been considered by the Board. at present. Applicant proposes, however, to im­ The Board has considered the application in the prove Bank’s services by making the expertise of light of the factors set forth in section 3(c) of the Applicant’s lead bank’s trust department available Act, including the effect of the proposed acquisi­ to Bank, consolidating the data processing services tion on competition, the financial and managerial it now obtains from four separate sources, and resources and future prospects of the Applicant providing for Bank internal audits and manage­ and the banks concerned, and the convenience and ment counsel relating to investments and credit needs of the communities to be served, and finds policies. Thus, considerations related to financial that: and managerial resources as well as to convenience Applicant has four subsidiary banks with aggre­ and needs of the community lend some weight in gate deposits of $171.7 million, representing 1.8 per cent of the total commercial bank deposits in favor of approval. It is the Board’s judgment that the State. Applicant is the fifth largest banking the proposed acquisition would be in the public organization and the fifth largest bank holding interest and that the application should be ap­ company in Minnesota. (All banking data are as proved. of December 31, 1970, adjusted to reflect holding It is hereby ordered, on the basis of the Board’s company acquisitions and formations approved findings summarized above, that said application through June 30, 1971.) Consummation of the be and hereby is approved, provided that the ac­ proposal herein would increase Applicant’s share quisition so approved shall not be consummated of commercial bank deposits in the State to 2.3 (a) before the thirtieth calendar day following the per cent, but would effect no change in Applicant’s date of this Order or (b) later than three months position in relation to other banking organizations. after the date of this Order, unless such period is Bank, with deposits of $37.3 million, is the third extended for good cause by the Board, or by the largest of eight banks located in the Rochester Federal Reserve Bank of Minneapolis pursuant to banking market and holds 22.1 per cent of area delegated authority. deposits. The two largest banks in the market, each By order of the Board of Governors, July 21, affiliated with one of the two largest holding com­ 1971. panies in the State, have 61.9 per cent of market deposits. Applicant’s subsidiary closest to Bank is Voting for this action: Chairman Burns and located 90 miles from it and, in light of this fact Governors Robertson, Maisel, and Sherrill. Absent and not voting: Governors Mitchell, Daane, and and other facts of record, notably, the close exist­ Brimmer. ing relationship between Applicant and Bank, and the unlikelihood that Applicant would enter Bank’s (Signed) Kenneth A. Kenyon, Deputy Secretary. market de novo, it appears that acquisition of Bank by Applicant would not eliminate any significant [seal] existing competition nor foreclose future com­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 683 FIRST VIRGINIA BANKSHARES change Applicant’s ranking and consummation of CORPORATION, the proposal would not increase concentration in ARLINGTON, VIRGINIA any market. Bank, located in Bland and having a branch at In the matter of the application of First Virginia Rocky Gap, is the only bank located in Bland Bankshares Corporation, Arlington, Virginia, for County, and there is no competition between it approval of acquisition of 80 per cent or more of and Applicant’s closest subsidiary located in Nar­ the voting shares of the successor by merger to rows, 21 miles northeast of Rocky Gap. For geo­ Bank of Bland County, Bland, Virginia. graphic reasons such competition appears unlikely to develop, and the declining population of the Bland area makes de novo entry by Applicant Order Approving Acquisition of Bank unlikely. Consummation of the proposed trans­ Stock by Bank Holding Company action would neither eliminate existing competi­ There has come before the Board of Governors, tion, foreclose potential competition, nor have pursuant to section 3(a)(3) of the Bank Holding adverse effects on the viability or competitive effec­ Company Act of 1956 (12 U.S.C. 1842(a)(3)), tiveness of any competing banks. The proposal, by and section 222.3(a) of Federal Reserve Regu­ allowing Bank to provide full banking services, lation Y (12 CFR 222.3(a)), an application by might strengthen Bank’s ability to compete for First Virginia Bankshares Corporation, Arlington, Bland County deposits with Banks in Wytheville, Virginia (“Applicant”), a registered bank holding Virginia, and Bluefield, West Virginia, and thus company, for the Board’s prior approval of the stimulate competition. Based upon the foregoing, acquisition of 80 per cent or more of the voting the Board concludes that consummation of the shares of the successor by merger to Bank of proposed acquisition would not have an adverse Bland County, Bland, Virginia (“Bank”). effect on competition in any relevant area, and As required by section 3(b) of the Act, the might have a procompetitive effect in Bland Board gave written notice of receipt of the appli­ County. cation to the Virginia Commissioner of Banking, Applicant, through Bank, proposes to introduce and requested his views and recommendation. The to the area additional types of deposit services, Commissioner recommended approval. such as certificates of deposit, additional loan Notice of receipt of the application was pub­ services, such as overdraft checking accounts, and lished in the Federal Register on June 9, 1971 (36 trust services, and considerations relating to the Federal Register 11127), providing an opportunity convenience and needs of the communities to be for interested persons to submit comments and served lend strong weight in favor of approval due views with respect to the proposal. A copy of the to the proposed local availability of full banking application was forwarded to the United States services. Considerations relating to the banking Department of Justice for its consideration. Time factors lend some weight toward approval of the for filing comments and views has expired and all application, in that Bank’s financial condition and those received have been considered. prospects, although generally satisfactory, would The Board has considered the application in the be enhanced through affiliation with Applicant. It light of the factors set forth in section 3(c) of the Act, including the effect of the proposed acquisi­ is the Board’s judgment that the proposed trans­ tion on competition, the financial and managerial action would be in the public interest and should resources and future prospects of the Applicant be approved. and the banks concerned, and the convenience and It is hereby ordered, for the reasons set forth needs of the communities to be served, and finds above, that said application be and hereby is that: approved, provided that the acquisition so ap­ Applicant is the sixth largest banking organi­ proved shall not be consummated (a) before the zation and the fifth largest holding company in thirtieth calendar day following the date of this Virginia, controlling 15 banks with $474.5 million Order, or (b) later than three months after the in deposits. (Banking data are as of June 30, 1971, date of this Order, unless such period is extended and reflect holding company acquisitions and for­ for good cause by the Board, or by the Federal mations approved by the Board to date.) Acquisi­ Reserve Bank of Richmond, pursuant to delegated tion of Bank (deposits $4.0 million) would not authority. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 FEDERAL RESERVE BULLETIN □ AUGUST 1971 By order of the Board of Governors, July 26, By order of the Board of Governors, July 29, 1971. 1971. Voting for this action: Governors Mitchell, Daane, Voting for this action: Vice Chairman Robertson Maisel, and Brimmer. Absent and not voting: Chair­ and Governors Mitchell, Maisel, Brimmer and Sherrill. man Burns and Governors Robertson and Sherrill. Absent and not voting: Chairman Burns and Governor Daane. (Signed) Kenneth A. Kenyon, (Signed) Kenneth A. Kenyon, Deputy Secretary. Deputy Secretary. [seal] [seal] MIDLANTIC BANKS INC., Statement NEWARK, NEW JERSEY Midlantic Banks Inc., Newark, New Jersey (“Applicant”), a registered bank holding com­ In the matter of the application of Midlantic pany, has applied to the Board of Governors, Banks Inc., Newark, New Jersey, for approval of pursuant to section 3(a)(3) of the Bank Holding acquisition of 100 per cent (less directors' quali­ Company Act of 1956 (12 U.S.C. 1842(a)(3)), fying shares) of the voting shares of the successor for prior approval of the acquisition of 100 per by merger to Citizens National Bank, Englewood, cent (less directors’ qualifying shares) of the New Jersey. voting shares of the successor by merger to Citizens National Bank, Englewood, New Jersey Order Denying Acquisition of Bank (“Citizens Bank”). Stock by Bank Holding Company Views and recommendation of supervisory au­ thority. As required by section 3(b) of the Act, There has come before the Board of Governors, the Board notified the Comptroller of the Currency pursuant to section 3(a)(3) of the Bank Holding of receipt of the application and requested his Company Act of 1956 (12 U.S.C. 1842(a)(3)), views and recommendation thereon. The Comp­ and section 222.3(a) of Federal Reserve Regu­ troller recommended approval of the application. lation Y (12 CFR 222.3(a)), an application by Statutory considerations. Section 3(c) of the Midlantic Banks Inc., Newark, New Jersey, a Act provides that the Board shall not approve an registered bank holding company, for the Board’s acquisition that would result in a monopoly or prior approval of the acquisition of 100 per cent would be in furtherance of any combination or (less directors’ qualifying shares) of the voting conspiracy to monopolize or to attempt to monop­ shares of the successor by merger to Citizens Na­ olize the business of banking in any part of the tional Bank, Englewood, New Jersey. United States. Nor may the Board approve a As required by section 3(b) of the Act, the proposed acquisition the effect of which, in any Board gave written notice of receipt of the appli­ section of the country, may be substantially to cation to the Comptroller of the Currency, and lessen competition, or to tend to create a monop­ requested his views and recommendation. The oly, or which in any other manner would be in Comptroller recommended approval of the appli­ restraint of trade, unless the Board finds that the cation. anticompetitive effects of the proposed transaction Notice of receipt of the application was pub­ are clearly outweighed in the public interest by lished in the Federal Register on March 3, 1971 the probable effect of the transaction in meeting (36 Federal Register 4081), providing an oppor­ the convenience and needs of the communities to tunity for interested persons to submit comments be served. In each case, the Board is required to and views with respect to the proposal. A copy of take into consideration the financial and mana­ the application was forwarded to the United States gerial resources and future prospects of the bank Department of Justice for its consideration. Time holding company and the banks concerned, and for filing comments and views has expired, and all the convenience and needs of the communities those received have been considered by the Board. to be served. It is hereby ordered, for the reasons set forth Competitive effect of proposed transaction. Ap­ in the Board’s Statement of this date, that said plicant controls four banks with aggregate deposits application be and hereby is denied. of $678 million and is the fourth largest banking Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 685 organization in New Jersey, with 4.9 per cent of the position that the proposal would eliminate the deposits in the State.1 The acquisition of Bank Applicant as a potential de novo entrant or as an (deposit of $194 million) would increase Appli­ entrant through purchase of a small or “foothold” cant’s share of deposits in the State to 6.3 per cent bank into Bergen County and also would eliminate and make it the largest banking organization in Bank as a potential member of a new holding the State. The acquisition would also increase company system in New Jersey. The Department Applicant’s share of deposits in the First Banking further expressed concern that the acquisition of District from 8.7 per cent to 11.3 per cent. Bank would serve to trigger additional acquisitions Applicant presently has two subsidiaries in the which would result in the consolidation of com­ First District: National Newark & Essex Bank mercial banking in the North Jersey area in a few (“National Newark”), a $602 million institution institutions. which is the fourth largest bank in New Jersey and The Commissioner of Banking for the State the third largest bank in Newark; and The Sussex of New Jersey also commented upon the proposal. & Merchants National Bank of Newton, a $46 He expressed his concern that approval of the million institution which is the largest of four acquisition of Bank “could be instrumental in relatively small banks in Sussex County. It also establishing a precedent for similar concentra­ controls a bank in the Second District: Raritan tion, which could be accompanied by serious anti­ Valley National Bank, Edison Township, a $22 competitive ramifications.” million bank which is the ninth largest of 20 banks Applicant was offered an opportunity to respond located in Middlesex County; and a bank in the to the contentions of the Commissioner and the Third District: Elmer Bank & Trust Company, Department. It replied to the Commissioner’s Elmer, an $8 million bank which is the fourth statement by stating that approval of its proposal largest of seven banks located in Salem County. would have little precedential value because each Citizens Bank, located in Bergen County in the individual proposal has a unique character which First District, has deposits of $194 million. It is differentiates it from other proposals. Applicant the fifth largest of 39 banking organizations in the answered the Justice Department’s comments by Paterson market2 and the eleventh largest of 88 stating that the possibility of the opening of de banks in the First District. novo branches in the market area of Bank was There is no present competition existing between extremely restricted by home office provisions and Applicant’s three smaller subsidiaries and Citizens population limitations. Applicant further stated, Bank and, based on the facts of record, there is “While the acquisition of a smaller bank than unlikely to develop substantial competition. Nor Citizens is theoretically possible, the economic would consummation of the acquisition eliminate feasibility is here limited by the earnings dilution substantial present competition between Citizens involved in the acquisition of such banks resulting Bank and Applicant’s largest subsidiary, National from the highly unrealistic market price which has Newark. Despite the fact that these institutions are been caused by the new law [permitting intra­ in adjoining markets and that their closest offices district mergers] and by constant emphasis on the are 12 miles apart, the record indicates that there acquisition of small banks as a desirable entrance is little deposit or loan overlap between the in­ medium.” Moreover, Applicant argued that either stitutions. de novo or foothold entry would not be as pro- However the elimination of present competition competitive as entry through acquisition of Bank is not the only competitive aspect that the Board because only such an acquisition would provide a must consider in determining whether the approval sufficiently large base for competition by the of an acquisition would be in the public interest. proposed subsidiary with the large New York In connection with the review of the application, banks. the Board has considered a comment from the The Board recognizes that additional competi­ Department of Justice which concluded that con­ tion with the larger New York City banks for summation of the proposal “would have an ad­ large customer services would result from approval verse effect on competition”. The Department took of the application. While this result is in the public interest insofar as those customers are concerned, 1 Banking data are as of June 30, 1970, and reflect holding company formations and acquisitions approved the Board must also consider any adverse effects by the Board through March 31, 1971. to other segments of the banking public. The 2 Bergen and Passaic Counties constitute the Paterson Board agrees with the Department and the Com­ market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 FEDERAL RESERVE BULLETIN □ AUGUST 1971 missioner that there will be important adverse posal are sufficiently serious as to provide sig­ effects on competition resulting from consum­ nificant weight against approval of the application. mation of the acquisition. Financial and managerial resources and future First, substantial potential competition would be prospects. The financial condition of Applicant foreclosed in the Paterson area. Bank is the fifth and its subsidiary banks is satisfactory, their man­ largest of 39 banking organizations in the Paterson agement is capable, and prospects of the group are market, which is adjacent to the greater Newark favorable. market in which Applicant’s largest subsidiary is The financial condition and management of located. Applicant’s significant size and its com­ Bank are generally satisfactory, and its prospects, petitive capability in this latter market make it whether operating independently or as a subsidiary one of the most likely potential entrants into the of Applicant, are favorable. Paterson market. That market, as are many of the These considerations, while consistent with ap­ banking markets, is relatively concentrated in that proval of the application, provide no significant four banks have over 55 per cent of the deposits. weight in support of such action. A number of communities which are attractive Convenience and needs of the communities in­ and capable of supporting entry are available to volved. Consummation of Applicant’s proposal Applicant in the Paterson market. That market would have an adverse effect on the convenience appears to be attractive for entry in view of its and needs of Englewood since it would preserve proximity to New York City. In fact, since 1969, Bank’s home office protection under New Jersey seven banking organizations not represented in law and close that city to branching from without. that market have opened new branches in the area. (On tjie other hand, merger with Bank would re­ Additionally, there are 26 independent banks in move the home office protection from Engle­ the Paterson market, each with deposits of under wood.) While no additional types of banking $100 million, whose acquisition by Applicant services would be introduced into the Paterson would be less anticompetitive than the acquisition market as a result of the proposed affiliation with of Bank. These alternatives bring substantial Applicant, an additional competitive alternative weight against approval of the present proposal. for larger customers would be provided. The con­ Second, Bank is a desirable subsidiary for a hold­ sideration of continued home office protection pro­ ing company located in either the Second or Third vides weight against approval of the application Banking District of New Jersey. If Applicant is which is not offset by other factors relating to permitted to acquire Bank, this would prevent a convenience and needs. bank holding company from the other districts Summary and conclusion. On the basis of all from using Bank as a means of entry into the relevant facts contained in the record, and in the First Banking District. light of the factors set forth in section 3(c) of the Third, the approval of the application could Act, it is the Board’s judgment that the proposed presage a trend towards concentration within transaction would not be in the public interest, banking districts which would have anticompeti­ and the application should be denied. tive consequences for the small and medium size banking customers who need a sufficient number Concurring Statement of Governors of alternatives to compete for their business. Mitchell and Sherrill “While the Board is not required to follow prece­ We concur in the majority view that the applica­ dent which subsequent developments establish to tion should be denied. However, we have a differ­ be improvident, it should avoid establishing a ing judgment as to the weight to be given several precedent which, if consistently applied will factors involved in the application. clearly do violence to the letter and spirit of the The majority rely heavily on what they consider legislation which it has the duty of impartially to be a substantial lessening of potential competi­ administering.” (1968 Bulletin 925) tion that would result from approval of the appli­ Based on the foregoing, the Board concludes cation. They give relatively little weight to the that consummation of Applicant’s proposal would procompetitive benefits that would result from not result in a monopoly or be in furtherance of approval. any combination, conspiracy, or attempt to mo­ In our judgment, the procompetitive aspects are nopolize the business of banking in any area. entitled to greater weight. Northern New Jersey However, the anticompetitive effects of the pro­ and Bergen County are closely linked to the New Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 687 York City market and New Jersey banks must cant”), for the Board’s prior approval of action compete with the large New York banks for both whereby Applicant would become a bank holding individual and business customers. What is needed company through the acquisition of 50.4 per cent in New Jersey is less fragmentation of its banking of the voting shares of First Security Bank of resources. In the New York City metropolitan Glendive, Glendive, Montana (“Bank”). area a $200 million bank is a relatively modest As required by section 3(b) of the Act, the sized institution. To more nearly meet the compe­ Board gave written notice of receipt of the applica­ tition of the larger banks across the river, New tion to the Superintendent of Banks of the State Jersey needs larger banks. The merging of Appli­ of Montana and requested his views and recom­ cant and Bank would strengthen the resources mendation. The Superintendent recommended ap­ needed to better match competitive alternatives in proval of the application. New York. Without affiliation with Applicant, Notice of receipt of the application was pub­ Bank will remain a comparatively passive competi­ lished in the Federal Register on April 22, 1971 tive factor in the Northern New Jersey-New York (36 Federal Register 7623), providing an op­ City area. portunity for interested persons to submit com­ We would file a dissent from the majority in this ments and views with respect to the proposed case were it not for the fact that approval of the transaction. A copy of the application was for­ application would mean that Bank’s existing warded to the United States Department of Justice “home office protection” would continue to close for its consideration. The time for filing comments the community of Englewood to new branches for and views has expired and all those received have the foreseeable future. “Home office protection” been considered by the Board. is basically inconsistent with a competitive banking It is hereby ordered, for the reasons set forth in system. It continues to survive in some States even the Board’s Statement of this date, that said appli­ though public policy at the national level, and in cation be and hereby is denied. most States, increasingly stresses the need to By order of the Board of Governors, July 29, achieve and maintain competitive banking 1971. conditions. Voting for this action: Vice Chairman Robertson If Applicant sought to merge Bank with its lead and Governors Mitchell, Maisel, Brimmer, and bank, National Newark and Essex, home office Sherrill. Absent and not voting: Chairman Burns and Governor Daane. protection would be eliminated in Englewood. We would encourage Applicant to explore this method (Signed) Kenneth A. Kenyon, of affiliation. Deputy Secretary. On the basis of the facts of record we would [seal] deny the application. Statement FIRST SEBANCO, INC., First Sebanco, Inc., Glendive, Montana (“Ap­ GLENDIVE, MONTANA plicant”), has filed with the Board, pursuant to In the matter of the application of First section 3(a)(1) of the Bank Holding Company Sebanco, Inc., Glendive, Montana, for approval of Act of 1956, an application for approval of action action to become a bank holding company through to become a bank holding company through the the acquisition of 50.4 per cent of the voting acquisition of 50.4 per cent of the voting shares shares of First Security Bank of Glendive, of First Security Bank of Glendive, Glendive, Glendive, Montana. Montana. Views and recommendation of supervisory au­ thority. As required by section 3(b) of the Act, Order Denying Action To Become A the Board gave written notice of receipt of the Bank Holding Company application to the Superintendent of Banks of There has come before the Board of Governors, the State of Montana and requested his views and pursuant to section 3(a)(1) of the Bank Holding recommendation. The Superintendent in recom­ Company Act of 1956 (12 U.S.C. 1842(a)(1)), mending approval of the application indicated that and section 222.3(a) of Federal Reserve Regula­ he foresaw no detrimental effect in the proposed tion Y (12 CFR 222.3(a)), an application by change of bank ownership, provided the bank First Sebanco, Inc., Glendive, Montana (“Appli­ dividends were continued at their present rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Statutory considerations. Section 3(c) of the in 1954. Mr. Johnson owns 67.2 per cent of the Act provides that the Board shall not approve an stock of Bank personally; he and his family to­ acquisition that would result in a monopoly or gether control 70.2 per cent, and other directors would be in furtherance of any combination or of Bank and their families control an additional conspiracy to monopolize or to attempt to monop­ 25.5 per cent. Shareholders unrelated to Bank’s olize the business of banking in any part of the officers own the remaining 4.3 per cent of Bank’s United States. Nor may the Board approve a pro­ stock. Mr. Johnson proposes to transfer voting posed acquisition, the effect of which, in any shares representing 50.4 per cent of the stock of section of the country, may be substantially to Bank to Applicant in return for 96 per cent of the lessen competition, or to tend to create a mo­ 500 shares of Applicant’s outstanding stock. No nopoly, or which in any other manner would be in formal offer has been made to acquire the interests restraint of trade, unless the Board finds that the of minority shareholders or permit them to share anticompetitive effects of the proposed transaction in the exchange. are clearly outweighed in the public interest by Statutory considerations. Applicant has no the probable effect of the transaction in meeting banking subsidiaries and consummation of the the convenience and needs of the communities to proposal would not eliminate existing or potential be served. In each case, the Board is required to competition among the area’s banking offices or take into consideration the financial and man­ among local insurance agencies. agerial resources and future prospects of the bank However, other aspects of the proposal cause holding company and the bank concerned, and substantial concern. First, the failure of an appli­ the convenience and needs of the communities to cant to make an equivalent offer to minority share­ be served. holders has long been regarded by the Board as an Insurance Activities. Applicant is a general in­ adverse circumstance. More importantly, Appli­ surance agency. Section 3 of the Act permits cant’s acquisition debt may adversely affect pros­ Board approval of the acquisition of a bank by pects of Applicant and Bank. such a company, if such transaction is determined In applications involving multibank holding to be in the public interest. Section 4 of the Act, companies, the Board has considered significant however, requires that, within two years of ac­ debt to acquire banks as being an adverse factor. quiring the bank, the company cease to engage in (E.g. 1970 Bulletin 948.) Such debt may ad­ nonbanking activities or obtain the Board’s ap­ versely affect the company itself, or lessen the proval under section 4(c)(8) for their continua­ ability of the company to furnish capital to its tion. subsidiary banks as needed. Thus, the amount and The Board has outstanding a proposed amend­ maturity of the debt must be considered in relation ment to its Regulation Y (“Bank Holding Com­ to the ability of the holding company to service panies”) that would declare certain types of in­ the debt, and the likelihood that the subsidiary surance activities to be permissible for bank banks will need capital. The debt factor is then holding companies subject to Board approval in balanced with other considerations in determining individual cases. The Board’s action today is not whether the acquisition would be in the public intended to reflect its views on the permissibility interest. of the insurance activities of Applicant. The record reflects the following facts: Appli­ Nature of the transaction. Applicant, an operat­ cant proposes to assume $219,000 debt (now owed ing insurance agency, formerly Exchange In­ by Mr. Johnson to a third party bank) which vestors, Inc., received a certificate of incorporation would result in a debt-to-equity ratio of 105 per from the State of Montana on January 4, 1971, cent. The loan bears interest at 4Vi per cent per to become a bank holding company and conduct a year and is renewable annually; it is contemplated general insurance business in Glendive, Montana, that the loan will be repaid in seven to nine years. a town of 6,305 inhabitants. Applicant operates Assuming all of Applicant’s insurance activities to on the premises of Bank ($12 million deposits).1 be permissible (which is not in issue in this appli­ Mr. George C. Johnson is Chairman of the cation), Applicant estimates that net insurance Board of Bank and President of Applicant, and has income added to projected dividends of Bank been associated with its predecessor organizations will be sufficient to meet its debt obligations. How­ since the first organization of the insurance agency ever, Applicant’s gross commission income has been declining, and there is some question whether 1 Banking data are as of June 30, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 689 Applicant could maintain its percentage of net to nity for interested persons to submit comments gross income. Furthermore, data submitted by and views with respect to the proposal. A copy of Applicant indicate that funds available for debt the application was forwarded to the United States service would not cover the anticipated reduction Department of Justice for its consideration. Time of the principal and interest. In view of these for filing comments and views has expired and all considerations, Applicant’s ability to service the those received have been considered by the Board. debt is questionable. The Board has considered the application in the The financial history and condition of Bank light of the factors set forth in section 3(c) of the can be considered to be fairly satisfactory and Act, including the effect of the proposed acquisi­ capital has recently improved to a reasonably tion on competition, the financial and managerial satisfactory level because of retained earnings. resources and future prospects of the Applicant Under all of the circumstances in this case, the and the banks concerned, and the convenience and Board concludes that the acquisition debt involved needs of the communities to be served, and finds in this proposal presents adverse circumstances that: bearing on the financial condition and prospects Applicant has 17 subsidiary banks with ag­ of Applicant and Bank. Such circumstances are gregate deposits of $645.7 million, representing not outweighed by any procompetitive factors or 4.6 per cent of the bank deposits in Florida and by circumstances relating to the convenience and ranks as the fourth largest bank holding company needs of the communities to be served. Accord­ in the State. (Banking data are as of December ingly, approval of the application is not in the 31, 1970, and reflect holding company formations public interest and it should be denied. and acquisitions approved by the Board through June 30, 1971.) Approval of the acquisition of Bank would not presently alter this ranking or in­ ATLANTIC BANCORPORATION, crease Applicant’s deposits since Bank, as stated JACKSONVILLE, FLORIDA above, is a proposed new bank. In the matter of the application of Atlantic Ban- All of Applicant’s existing subsidiaries are in corporation, Jacksonville, Florida, for approval of excess of 45 miles from Gainesville with one ex­ acquisition of 52 per cent or more of the voting ception. Applicant’s First National Bank of shares of Gainesville Atlantic Bank, Gainesville, Gainesville is four miles southeast of Bank and is Florida, a proposed new bank. the largest bank in the Gainesville area with de­ posits of $47.7 million. However, there are nine other banks competing in the area, including af­ Order Approving Acquisition of Bank Stock filiates of Florida’s first, fifth, and thirteenth largest by Bank Holding Company holding companies. These latter three control There has come before the Board of Governors, some 44 per cent of area deposits and are able to pursuant to section 3(a)(3) of the Bank Holding provide strong competition. Moreover, the Gaines­ Company Act of 1956 (12 U.S.C. 1842(a)(3)) ville area has experienced rapid population growth and section 222.3(a) of Federal Reserve Regula­ and appears to possess attractive opportunities for tion Y (12 CFR 222.3(a)), an application by At­ other de novo entrants. Considering the present lantic Bancorporation, Jacksonville, Florida (“Ap­ competition existing in Gainesville and the proba­ plicant”), a registered bank holding company, for bility of increased future competition, the Board the Board’s prior approval of the acquisition of concludes that consummation of the proposed ac­ 52 per cent or more of the voting shares of Gaines­ quisition would not adversely affect competition ville Atlantic Bank, Gainesville, Florida (“Bank”), in any relevant area. a proposed new bank. The financial and managerial resources and fu­ As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli­ ture prospects of Applicant, its subsidiary banks, cation to the Florida Commissioner of Banking, and Bank are regarded as satisfactory. The estab­ and requested his views and recommendation. The lishment of Bank would provide a more conven­ Commissioner responded that he recommended ient banking location for many customers in the approval of the application. northern Gainesville area. Thus, considerations re­ Notice of receipt of the application was pub­ lated to the convenience and needs of the commu­ lished in the Federal Register on June 9, 1971 (36 nity lend some weight in favor of approval. It is Federal Register 11126), providing an opportu­ the Board’s judgment that the proposed acquisition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 FEDERAL RESERVE BULLETIN □ AUGUST 1971 would be in the public interest and that the appli­ Notice of receipt of the application was pub­ cation should be approved. lished in the Federal Register on July 10, 1971 It is hereby ordered, on the basis of the (36 Federal Register 13004), providing an op­ Board’s findings summarized above, that said ap­ portunity for interested persons to submit com­ plication be and hereby is approved, provided that ments and views with respect to the proposal. A the acquisition so approved shall not be consum­ copy of the application was forwarded to the mated (a) before the thirtieth calendar day follow­ United States Department of Justice for its con­ ing the date of this Order or (b) later than three sideration. Time for filing comments and views months after the date of this Order, and provided has expired and all those received have been further that (c) Gainesville Atlantic Bank shall be considered. open for business not later than six months after The Board has considered the application in the the date of this Order. The periods described in light of the factors set forth in section 3(c) of the (b) and (c) hereof may be extended for good Act. including the effect of the proposed acquisi­ cause by the Board or by the Federal Reserve Bank tion on competition, the financial and managerial of Atlanta pursuant to delegated authority. resources and future prospects of the Applicant By order of the Board of Governors, August 3, and the bank concerned, and the convenience and 1971. needs of the communities to be served, and finds that: Voting for this action: Chairman Burns and Gov­ Applicant is a nonoperating Michigan corpora­ ernors Robertson, Mitchell, Brimmer, and Sherrill. Ab­ tion recently formed for the purpose of acquiring sent and not voting: Governors Daane and Maisel. Bank. As Applicant has no present operations or (Signed) Kenneth A. Kenyon, subsidiaries, consummation of the proposal would Deputy Secretary. eliminate neither existing nor potential competi­ [seal] tion, and there would be no adverse effects on competing banks. UNITED MIDWEST EQUITY, INC., Bank, with deposits of approximately $55 mil­ DETROIT, MICHIGAN lion, controls .3 per cent of commercial bank de­ posits in the State of Michigan. The acquisition In the matter of the application of United Mid­ proposed herein should result in Bank becoming a west Equity, Inc., Detroit, Michigan, for approval stronger and more viable banking institution and of action to become a bank holding company a more effective competitor in the relevant mar­ through the acquisition of 97.1 per cent of the vot­ ket. Banking factors weigh in favor of approval of ing shares of Liberty State Bank and Trust, Hamthe application since the transaction would place tramck, Michigan. responsible local interests in management of Bank, and Applicant proposes to undertake specific meas­ Order Approving Action To Become ures to improve Bank’s present financial condition A Bank Holding Company and to continue to improve operating procedures. There has come before the Board of Governors, While it appears that banking needs of the area are pursuant to section 3(a)(1) of the Bank Holding being adequately served at the present time, it is Company Act of 1956 (12 U.S.C. 1842(a)(1)) expected that consummation of the proposal will and section 222.3(a) of Federal Reserve Regula­ strengthen the Bank and enable it to better serve tion Y (12 CFR 222.3(a)), an application by the banking needs of the area. Therefore, consid­ United Midwest Equity, Inc., (“Applicant”), De­ erations relating to convenience and needs of the troit, Michigan, for the Board’s prior approval of communities to be served also lend weight in favor action whereby Applicant would become a bank of approval of the application. It is the Board’s holding company through the acquisition of 97.1 judgment that the proposed transaction would be per cent of the voting shares of Liberty State Bank in the public interest and that the application and Trust (“Bank”), Hamtramck, Michigan. should be approved. As required by section 3(b) of the Act, the It is hereby ordered, for the reasons set Board gave written notice of receipt of the appli­ forth above, that said application be and hereby is cation to the Commissioner of Financial Institu­ approved, provided that the acquistion so approved tions for the State of Michigan, and requested his shall not be consummated (a) before the thirtieth views and recommendation. The Commissioner calendar day following the date of this Order or recommended approval of the application. (b) later than three months after the date of this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 691 Order, unless such period is extended for good mated (a) before the thirtieth calendar day fol­ cause by the Board, or by the Federal Reserve lowing the date of this Order, or (b) later than Bank of Chicago pursuant to delegated authority. three months after the date of this Order, unless By order of the Board of Governors, August 3, such period is extended for good cause by the 1971. Board, or by the Federal Reserve Bank of Rich­ mond pursuant to delegated authority. Voting for this action: Chairman Burns and Gov­ ernors Robertson, Mitchell, Brimmer, and Sherrill. By order of the Board of Governors, August 5, Absent and not voting: Governors Daane and Maisel. 1971. (Signed) Kenneth A. Kenyon, Deputy Secretary. Voting for this action: Chairman Burns and Gov­ [seal] ernors Daane, Maisel, and Sherrill. Voting against this action: Governor Robertson. Absent and not voting: Governors Mitchell and Brimmer. FIRST & MERCHANTS CORPORATION, RICHMOND, VIRGINIA (Signed) Kenneth A. Kenyon, Deputy Secretary. In the matter of the application of First & Mer­ chants Corporation, Richmond, Virginia, for prior [seal] approval of the acquisition of 100 per cent (less directors' qualifying shares) of the voting shares of Statement the successor by merger to The First National First & Merchants Corporation, Richmond, Vir­ Bank of Danville, Danville, Virginia. ginia, (“Applicant”), a bank holding company, has applied to the Board of Governors, pursuant to Order Approving Acquisition of Bank Stock section 3(a)(3) of the Bank Holding Company By Bank Holding Company Act of 1956 (12 U.S.C. 1842(a)(3)), for prior There has come before the Board of Governors, approval of the acquisition of 100 per cent (less pursuant to section 3(a)(3) of the Bank Holding directors’ qualifying shares) of the voting shares of Company Act of 1956 (12 U.S.C. 1842(a)(3)), the successor by merger to The First National and section 222.3(a) of Federal Reserve Regula­ Bank of Danville, Djanville, Virginia (“First tion Y (12 CFR 222.3(a)), an application by National”). First & Merchants Corporation, Richmond, Vir­ Views and recommendation of supervisory au­ ginia (“Applicant”), a bank holding company, for thority. As required by section 3(b) of the Act, the Board’s prior approval of the acquisition of the Board notified the Comptroller of the Cur­ 100 per cent (less director’s qualifying shares) of rency of receipt of the application and requested the voting shares of the successor by merger to his views and recommendation thereon. The The First National Bank of Danville, Danville, Comptroller recommended approval of the pro­ Virginia. posed acquisition. As required by section 3(b) of the Act, Statutory considerations. Section 3(c) of the the Board gave written notice of receipt of the Act provides that the Board shall not approve an application to the Comptroller of the Currency, acquisition that would result in a monopoly or and requested his views and recommendation. would be in furtherance of any combination or The Comptroller recommended approval of the conspiracy to monopolize or to attempt to mo­ application. nopolize the business of banking in any part of the Notice of receipt of the application was pub­ United States. Nor may the Board approve a pro­ lished in the Federal Register on April 27, 1971 posed acquisition the effect of which, in any sec­ (36 Federal Register 7875), providing an oppor­ tion of the country, may be substantially to lessen tunity for interested persons to submit comments competition, or to tend to create a monopoly, or and views with respect to the proposal. A copy of which in any other manner would be in restraint of the application was forwarded to the United States trade, unless the Board finds that the anticompeti­ Department of Justice for its consideration. Time tive effects of the proposed transaction are clearly for filing comments and views has expired, and all outweighed in the public interest by the probable those received have been considered by the Board. effect of the transaction in meeting the conven­ It is hereby ordered, for the reasons set forth ience and needs of the communities to be served. in the Board’s Statement of this date, that said ap­ In each case, the Board is required to take into plication be and hereby is approved, provided that consideration the financial and managerial re­ the acquisition so approved shall not be consum­ sources and future prospects of the bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 FEDERAL RESERVE BULLETIN □ AUGUST 1971 company and the banks concerned, and the con­ It should first be noted that although First Na­ venience and needs of the communities to be tional is the largest in the relevant area, it is not served. substantially larger than the second largest bank, Competitive effect of proposed transaction. Ap­ and, during the last eight years, First National’s plicant, the third largest banking organization in rate of growth has been considerably smaller than Virginia, controls one bank, First & Merchants that of the other Danville banks. Moreover, there National Bank (“Merchants”), which has 67 bank­ exists substantial competition for First National. ing offices located throughout the State. Mer­ As far as entry into the market is concerned Pitt­ chants, with aggregate deposits of $768 million, sylvania County does not appear to be attractive has 9.6 per cent of the deposits in Virginia and is for de novo entry. The population of Pittsylvania the second largest bank in the State.1 Applicant’s County and Danville, the largest city in the acquisition of First National ($45 million depos­ County, has increased by less than 1 per cent over its) would increase its share of deposits in Vir­ the past decade. The tobacco and textile indus­ ginia by only .6 per cent and would not change its tries, which are the two most important for the ranking. area, have been stagnant or declining, and the ad­ First National is the largest of ten banks located ministrative headquarters of the largest employer in Pittsylvania County, a relevant market area, in Danville has been moved out of the State. Addi­ controlling 27 per cent of deposits in the market. tionally, the number of persons per banking office The closest office of Merchants to First National and the ratio of deposits to banking offices in the is approximately 65 miles away and competition market area are considerably lower than the State­ between this office and First National is minimal, wide average. with little likelihood of increasing in the future be­ There is little likelihood of Applicant acquiring cause of the State branching limitations. a smaller bank in the Pittsylvania market than The Board has considered a report of the De­ First National. There are four independent banks partment of Justice which concluded that approval headquartered in Danville besides First National. of the proposal would have an “adverse effect on Of these four, two are converted industrial loan competition.” The Department recognized there associations which are unsuitable because of their was little existing competition between Merchants size and inexperience in commercial bank prac­ and First National but argued that acquisition of tices. A third bank has indicated little or no inter­ the largest competitor in the market would elimi­ est in affiliation with a holding company. The nate the potential of Merchants entering Pittsyl­ fourth bank is the second largest in the market, vania County, either through de novo entry, or by with a market share of 21.4 per cent, and its purchase of a small bank in the County. growth rate over the recent past has been nearly double that of First National. The acquisition of Applicant was given an opportunity to reply this bank would appear to have similar competi­ and did so. Applicant answered the Department’s tive consequences as the acquisition of First contention that Merchants was a potential de novo National. entrant into the Pittsylvania market by stating that There are three other independent banks in the economy of the market is uncertain due to its Pittsylvania County which are located outside of heavy reliance on the tobacco and textile indus­ Danville. Another holding company has already tries, and that there are fewer persons per banking indicated it will seek to acquire one of these banks. office in Pittsylvania County than in other areas The other two banks are relatively small, in of the State. Applicant answered the Department’s smaller towns, and are not attractive to Applicant contention that entry through acquisition of a at this time. small or “foothold” bank would be less anticom­ Financial and managerial resources and future petitive than the proposed acquisition by stating prospects. The financial condition and manage­ that there was no indication that any “foothold” ment of Applicant and its subsidiary are satisfac­ banks were available, or that the Pittsylvania mar­ tory and the prospects of each are favorable. ket was attractive enough so that Applicant would First National has satisfactory financial condi­ enter it regardless of whether its application was tion and management and its prospects seem fa­ denied. vorable. These factors are consistent with approval of the application. 1 Banking data are as of December 31, 1970, and re­ Convenience and needs. As stated above, Pitt­ flect holding company formations and acquisitions ap­ proved by the Board through May 31, 1971. sylvania County’s economy rests heavily on the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 693 tobacco and textile industries which together ac­ especially in the light of Board approval of appli­ count for almost one-half of the total area work cations such as the present one. force. Both these industries have experienced diffi­ Nevertheless, because of my strong belief in the culties in recent years, textiles from a large in­ ability of competition to advance the public inter­ crease in imports and tobacco from health con­ est, I would require a greater showing that alter­ cerns. These difficulties have resulted in the area native means of entry are unavailable. Applicant economy becoming stagnant and have increased has not made that showing in this case and there­ interest on the part of local people in diversifica­ fore I would deny the application. tion. Several new companies have been brought into Pittsylvania County through the efforts of HAMILTON BANCSHARES, INC., these local people. However, before further diver­ CHATTANOOGA, TENNESSEE sification can be accomplished, a full-scale whole­ sale banking organization is needed in order to In the matter of the application of Hamilton facilitate such expansion. Applicant’s acquisition Bancshares, Inc., Chattanooga, Tennessee for ap­ of First National would provide Pittsylvania proval of acquisition of 90.5 per cent or more of County with such a banking organization through the voting shares of The First National Bank of the use of Merchant’s extensive experience in the Polk County, Copperhill, Tennessee. field of wholesale banking. It is unlikely that First National could evolve into the type of banking or­ Order Approving Acquisition of Bank Stock ganization that is needed without affiliation with by Bank Holding Company Applicant. These considerations of convenience There has come before the Board of Governors, and needs of the community lend support for ap­ pursuant to section 3(a)(3) of the Bank Holding proval of the application. Company Act of 1956 (12 U.S.C. 1842(a)(3)) Summary and conclusion. On the basis of all re­ and section 222.3(a) of Federal Reserve Regula­ levant facts contained in the record, and in the tion Y (12 CFR 222.3(a)), an application by light of the factors set forth in section 3(c) of the Hamilton Bancshares, Inc., Chattanooga, Tennes­ Act, it is the Board’s judgment that the proposed see (“Applicant”), a registered bank holding com­ transaction would be in the public interest, and pany, for the Board’s prior approval of the acquisi­ that the application should be approved. tion of 90.5 per cent or more of the voting shares of The First National Bank of Polk County, Cop­ Dissenting Statement perhill, Tennessee (“Bank”). of Governor Robertson As required by section 3(b) of the Act, the I dissent from the majority’s approval of this Board gave written notice of receipt of the applica­ application since I feel Applicant has not carried tion to the Comptroller of the Currency, and re­ the burden of showing that approval would be in quested his views and recommendation. The the public interest. Comptroller has recommended approval of the There is no dispute on my part with the conclu­ application. sion that there is little existing competition be­ Notice of receipt of the application was pub­ tween Applicant’s subsidiary First & Merchants lished in the Federal Register on June 9, 1971 (36 National Bank (“Merchants”) and The First Na­ Federal Register 11127), providing an opportunity tional Bank of Danville (“First National”). How­ for interested persons to submit comments and ever, Applicant’s acquisition of First National, the views with respect to the proposal. A copy of the dominant competitor in Pittsylvania County, application was forwarded to the United States De­ would foreclose the possibility of Applicant’s en­ partment of Justice for its consideration. Time for trance into that market through a less anticom­ filing comments and views has expired and all petitive route. those received have been considered. Alternative methods of entry would increase The Board has considered the application in the bank competition, with obvious benefits to the light of the factors set forth in section 3(c) of the public. Applicant states that acquisition of large Act, including the effect of the proposed acquisi­ organizations is consistent with its operations, and tion on competition, the financial and managerial that it would not consider other means of entry. resources and future prospects of the Applicant It is easy to understand Applicant’s reluctance to and the banks concerned, and the convenience consider these other means, which would not pro­ and needs of the communities to be served, and vide it with immediate dominance in the market, finds that: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

694 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Applicant, the largest bank holding company proved shall not be consummated (a) before the and fifth largest banking organization in Tennes­ thirtieth calendar day following the date of this see, controls 9 banks which hold combined depos­ Order or (b) later than three months after the date its of $441.6 million, representing 5.9 per cent of of this Order, unless such period is extended for the total deposits held by Tennessee banks.1 (All good cause by the Board, or by the Federal Re­ banking data are as of December 31, 1970, ad­ serve Bank of Atlanta pursuant to delegated justed to reflect holding company formations and authority. acquisitions approved by the Board through June By order of the Board of Governors, August 5, 30, 1971.) Upon acquisition of Bank (deposits of 1971. $12.7 million), Applicant would remain the fifth largest banking organization and its control of de­ Voting for this action: Chairman Burns and Gov­ posits in the State would increase slightly to 6.1 ernors Robertson, Mitchell, and Brimmer. Absent and not voting: Governors Daane, Maisel, and Sherrill. per cent. Bank, which operates one office at Copperhill, (Signed) Kenneth A. Kenyon, Tennessee, is the largest of three banks in Polk Deputy Secretary. County with 60.1 per cent of the deposits in the [seal] county. Acquisition of Bank would represent Ap­ plicant’s initial entry into Polk County; Applicant’s THE SUNCOOK BANK, subsidiary closest to Bank is approximately 60 SUNCOOK, NEW HAMPSHIRE miles away from it. Because of the distances in­ volved, Tennessee’s restrictive branching laws, and In the matter of the application of The Suncook the unlikelihood that Applicant would enter the Bank, Suncook, New Hampshire, for approval of Polk County market de novo, it appears that con­ action to become a bank holding company through summation of the proposal herein would not re­ the acquisition of 48 per cent of the voting shares sult in the elimination of any significant present of The Hooksett Bank, Hooksett, New Hampshire, competition, nor the foreclosure of any significant a proposed new bank. potential competition between Bank and Appli­ cant’s subsidiaries. Although Applicant is acquir­ Order Approving Action to Become ing the largest bank in the relevant market, the a Bank Holding Company limited size and nature of the market (each bank There has come before the Board of Governors, is the sole bank within its community) make it pursuant to section 3(a)(1) of the Bank Holding appear unlikely that competition between existing Company Act of 1956 (12 U.S.C. 1842(a)(1)) banks in the market will be altered. On the basis of and section 222.3(a) of Federal Reserve Regula­ the record before it, the Board concludes that con­ tion Y (12 CFR 222.3(a)), an application by The summation of the proposed acquisition would not Suncook Bank, Suncook, New Hampshire (“Ap­ adversely affect competition in any relevant area. plicant”), for the Board’s prior approval of action The financial and managerial resources and fu­ whereby Applicant would become a bank holding ture prospects of Applicant, its subsidiary banks, company through the acquisition of 48 per cent of and Bank are regarded as satisfactory. The major the voting shares of The Hooksett Bank, Hook­ banking needs of Copperhill appear to be ade­ sett, New Hampshire (“Bank”), a proposed new quately served at present. Applicant proposes to bank. improve bank services by making its trust services As required by section 3(b) of the Act, the and managerial resources more readily available. Board gave written notice of receipt of the appli­ Thus, considerations related to financial and man­ cation to the New Hampshire Bank Commissioner, agerial resources as well as convenience and needs and requested his views and recommendation. of the community are consistent with approval. It The Commissioner recommended approval of the is the Board’s judgment that the proposed transac­ application. tion would be in the public interest, and that the Notice of receipt of the application was pub­ application should be approved. lished in the Federal Register on June 19, 1971 It is hereby ordered, for the reasons set (36 Federal Register 11833), providing an oppor­ forth above, that said application be and hereby is tunity for interested persons to submit comments approved, provided that the acquisition so ap- and views with respect to the proposal. A copy of the application was forwarded to the United States 1 Applicant also controls 2 banks in Georgia which hold combined deposits of $56.8 million. Department of Justice for its consideration. Time Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 695 for filing comments and views has expired and all By order of the Board of Governors, August 5, those received have been considered. 1971. The Board has considered the application in the light of the factors set forth in section 3(c) of the Voting for this action: Chairman Burns and Gov­ Act, including the effect of the proposed acquisi­ ernors Robertson, Mitchell, and Brimmer. Absent and not voting: Governors Daane, Maisel, and Sherrill. tion on competition, the financial and managerial resources and future prospects of the Applicant (Signed) Kenneth A. Kenyon, and the bank concerned, and the convenience and Deputy Secretary. needs of the communities to be served and finds [seal] that: Applicant, a bank with $16.2 million deposits, COMMERCE BANCSHARES, INC., has one office with 1.6 per cent of the deposits in KANSAS CITY, MISSOURI the State, and 25 per cent of the deposits in the Concord area. (Banking data are as of December In the matter of the application of Commerce 31, 1970.) Applicant proposes to acquire 48 per Bancshares, Inc., Kansas City, Missouri, for ap­ cent of the voting shares of Bank, and directors of proval of acquisition of more than §0 per cent of Applicant propose to acquire an additional 4 per the voting shares of Fenton Bank, Fenton, cent, with local residents owning the remainder. Missouri. Bank, the first to be located in Hooksett, a town of 5,300 3 miles south of Applicant, will, in effect, Order Approving Acquisition of Bank Stock serve as a branch of Applicant. Bank should as­ by Bank Holding Company sume a portion of Applicant’s existing business from the Hooksett area* However, this will not re­ There has come before the Board of Governors, sult in an elimination of existing or potential com­ pursuant to section 3(a)(3) of the Bank Holding petition since Bank will be a new institution and Company Act of 1956 (12 U.S.C. 1842(a)(3)) will not open except as a subsidiary of Applicant. and section 222.3(a) of Federal Reserve Regula­ Based on the record before it, the Board concludes tion Y (12 CFR 222.3(a)), an application by that consummation of the proposal will have no Commerce Bancshares, Inc., Kansas City, Mis­ adverse effects on existing or potential competition. souri (“Applicant”), for the Board’s prior ap­ Rather, the formation of Bank will result in in­ proval of the acquisition of more than 80 per cent creased banking facilities and competition. of the voting shares of Fenton Bank, Fenton, Mis­ The financial and managerial resources and fu­ souri (“Bank”). ture prospects of Applicant and Bank are reason­ As required by section 3(b) of the Act, the ably satisfactory and consistent with approval of Board gave written notice of receipt of the appli­ the application. cation to the Missouri Commissioner of Finance, The development of an industrial park and a and requested his views and recommendation. The shopping center, both in the vicinity of Bank, have Commissioner responded that his office considered created the need for additional banking services in the proposal a very progressive step for banking in the area. In view thereof and in view of recent in­ Missouri. creases in population of the area, considerations Notice of receipt of the application was pub­ relating to the convenience and needs of the com­ lished in the Federal Register on June 15, 1971 munity to be served weigh in favor of approval. (36 Federal Register 11538), providing an oppor­ It is hereby ordered, for the reasons set forth tunity for interested persons to submit comments above, that said application be and hereby is ap­ and views with respect to the proposal. A copy of proved, provided that the acquisition so approved the application was forwarded to the United States shall not be consummated (a) before the thirtieth Department of lustice for its consideration. Time calendar day following the date of this Order or for filing comments and views has expired and all (b) later than three months after the date of this those received have been considered. Order, and provided further that (c) The Hooksett The Board has considered the application in the Bank shall be open for business not later than six light of the factors set forth in section 3(c) of the months after this Order. The periods described in Act, including the effect of the proposed acquisi­ (b) and (c) hereof may be extended for good tion on competition, the financial and managerial cause by the Board, or by the Federal Reserve resources and future prospects of the Applicant Bank of Boston pursuant to delegated authority. and the banks concerned, and the convenience and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 FEDERAL RESERVE BULLETIN □ AUGUST 1971 needs of the communities to be served, and finds proposed transaction would be in the public in­ that: terest, and that the application should be approved. Applicant, the third largest bank holding com­ It is hereby ordered, for the reasons set forth pany and the third largest banking organization in above, that said application be and hereby is ap­ Missouri, controls eighteen banks with aggre­ proved, provided that the acquisition so approved gate deposits of $866.7 million, representing 7.6 shall not be consummated (a) before the thirtieth per cent of the commercial bank deposits in the calendar day following the date of this Order or State. (All banking data are as of December 31, (b) later than three months after the date of this 1970, adjusted to reflect holding company forma­ Order, unless such period is extended for good tions and acquisitions approved by the Board cause by the Board, or by the Federal Reserve through June 30, 1971.) As a result of consumma­ Bank of Kansas City pursuant to delegated tion of the proposal herein, Applicant’s position authority. in relation to the State’s other bank holding com­ By order of the Board of Governors, August 10, panies and banking organizations would remain 1971. unchanged. Bank ($14.1 million), located 16 miles south­ Voting for this action: Chairman Burns and Gov­ ernors Mitchell, Brimmer, and Sherrill. Absent and west of downtown St. Louis in the extreme south­ not voting: Governors Robertson, Daane, and Maisel. ern portion of St. Louis County, is the fifth largest of the eight banks competing in its primary service (Signed) Kenneth A. Kenyon, area, with 9.9 per cent of that area’s deposits. Deputy Secretary. The addition of Bank to Applicant’s system would [seal] give Applicant four subsidiaries in the St. Louis banking market; however, Applicant would con­ UNITED BANK CORPORATION OF trol only 1.9 per cent of the deposits therein and NEW YORK, ALBANY, NEW YORK rank sixth among the bank holding companies In the matter of the application of United Bank operating in the St. Louis market. None of Ap­ Corporation of New York, Albany, New York, for plicant’s present subsidiaries compete with Bank approval of action to become a bank holding com­ to any significant extent, and the development of pany through the acquisition of 100 per cent of such competition in the future appears remote be­ the voting shares of State Bank of Albany, Albany, cause of natural and man-made barriers, and the New York, and 100 per cent of the voting shares presence of banks in the intervening areas. The (less directors' qualifying shares) of the successor overall effect on competition should be procomby merger to Liberty National Bank and Trust petitive since Bank’s acquisition by Applicant will Company, Buffalo, New York. dissolve an existing affiliation of Bank with one of the banks operating in its service area. It does not appear, therefore, that significant existing com­ Order Approving Action to Become petition would be eliminated or significant poten­ a Bank Holding Company tial competition foreclosed by consummation of There has come before the Board of Governors, Applicant’s proposal, or that there would be undue pursuant to section 3(a)(1) of the Bank Holding adverse effects on any bank in the area involved. Company Act of 1956 (12 U.S.C. 1842(a)(1)) Based upon the foregoing, the Board concludes and section 222.3(a) of Federal Reserve Regula­ that consummation of the proposed acquisition tion Y (12 CFR 222.3(a)), an application by would not have significant adverse effects on com­ United Bank Corporation of New York, Albany, petition in any relevant area. The banking factors, New York, for the Board’s prior approval of action as they relate to Applicant, its subsidiaries, and whereby Applicant would become a bank holding Bank, are regarded as consistent with approval of company through the acquisition of 100 per cent the application. Considerations relating to the con­ of the voting shares of State Bank of Albany, venience and needs of the communities to be Albany, New York (“State Bank”), and 100 per served lend some weight in support of approval. cent of the voting shares (less directors’ qualifying Applicant intends to assist Bank in expanding its shares) of the successor by merger to Liberty physical facilities; moreover, affiliation with Ap­ National Bank and Trust Company, Buffalo, New plicant should enable Bank to offer a wider range York (“Liberty National”). (Liberty National is of banking services, including bond portfolio man­ to be merged into a nonoperating bank that has agement, expanded consumer lending, and data significance only as a vehicle to accomplish the processing. It is the Board’s judgment that the acquisition of all the shares of Liberty National; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 697 accordingly, acquisition of the shares of the suc­ with each other to any meaningful extent, and it cessor bank is treated as an acquisition of shares appears unlikely they would do so in the reason­ of Liberty National.) ably foreseeable future. No office of one is located As required by section 3(b) of the Act, the within 185 miles of the other, and at the present Board gave written notice of receipt of the appli­ time New York law prevents either from branch­ cation to the Comptroller of the Currency and to ing or merging outside its Banking District. It the Superintendent of Banks of the State of New appears that affiliation of the two banks in a hold­ York, and requested their views and recommenda­ ing company system would enable Liberty Na­ tions. Both the Comptroller and the Superinten­ tional to compete more effectively with the larger dent recommended approval of the application. Buffalo banks and would result in a banking Notice of receipt of the application was pub­ organization of sufficient size to compete with lished in the Federal Register on June 15, 1971 the major bank holding companies now doing (36 Federal Register 11539), providing an oppor­ business in upstate New York or planning to do tunity for interested persons to submit comments so in the future. The affiliation should not raise and views with resptct to the proposal. A copy significant barriers to entry into the relevant of the application was forwarded to the United markets nor have an undue adverse effect on other States Department of Justice for its consideration. banks there, many of which are or propose to be­ Time for filing comments and views has expired come subsidiaries of holding companies. On the and all those received have been considered. basis of the record before it, the Board concludes The Board has considered the application in that consummation of the proposal would not have the light of the factors set forth in section 3(c) a significant adverse effect on competition in any of the Act, including the effect of the proposed relevant area. acquisition on competition, the financial and The financial condition of each bank appears managerial resources and future prospects of the satisfactory; both are regarded as having com­ Applicant and the banks concerned, and the con­ petent managements and favorable prospects. It venience and needs of the communities to be appears that Applicant will begin operations in served, and finds that: satisfactory condition and with competent man­ Applicant is a newly-organized corporation. agement; its prospects, which are largely depend­ Upon consummation of this proposal, Applicant ent upon those of its two proposed subsidiaries, will control $1.2 billion in deposits, representing also appear favorable. Affiliation of the two banks 1.4 per cent of total commercial bank deposits in should enable each to offer improved and ex­ New York, and would become the thirteenth panded services. Liberty National could expand its largest banking organization and sixth largest services in areas such as leasing and computer multi-bank holding company in the State. (Bank­ services. It is the Board’s judgment that the pro­ ing data, unless otherwise noted, are as of Decem­ posed transaction is in the public interest, and ber 30, 1970, and reflect holding company ac­ that the application should be approved. quisitions approved through June 30, 1971.) It is hereby ordered, for the reasons sum­ State Bank ($743 million in deposits), operates marized above, that said application be and hereby in the Fourth Banking District and has 31 offices is approved, provided that the acquisition so ap­ located therein. It controls 34 per cent (as of proved shall not be consummated (a) before the June 30, 1970) of the commercial bank deposits thirtieth calendar day following the date of this in the relevant market, which is approximated by Order or (b) later than three months after the Albany, Schenectady and Rensselaer Counties and date of this Order, unless such period is extended the southern portion of Saratoga County. On the for good cause by the Board or by the Federal basis of deposits, State Bank is the largest of fif­ Reserve Bank of New York pursuant to delegated teen banking organizations in that market. authority. Liberty National ($452 million in deposits) op­ By order of the Board of Governors, August 10, erates its 34 offices in the Ninth Banking District, 1971. and controls 14 per cent (as of June 30, 1970) of the commercial bank deposits in the relevant Voting for this action: Chairman Burns and Gov­ market, which is approximated by Erie and Ni­ ernors Mitchell, Brimmer, and Sherrill. Absent and not voting: Governors Robertson, Daane, and Maisel. agara Counties. On the basis of deposits, Liberty National is the third largest of the ten banking (Signed) Kenneth A. Kenyon, organizations in that market. Deputy Secretary State Bank and Liberty National do not compete [seal] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF EXPANDED COMMUNICATIONS NETWORK The Board of Governors of the Federal Reserve To further expedite payment traffic by making System has announced the appointment of Robert financial transactions for individuals and busi­ C. Holland to the newly created post of Executive nesses quicker and cheaper, the Board of Gov­ Director, effective August 15, 1971. Mr. Holland ernors on August 11, 1971, opened the System’s is succeeded as Secretary of the Board by Tynan recently expanded nationwide communications net­ Smith, who has been Assistant Director of the work for use, free of charge, for wire transfers of Board’s Division of Supervision and Regulation. $1,000 or more. Mr. Holland continues to hold the position of The new rules give depositors in Federal Reserve Secretary of the Federal Open Market Committee. member banks direct access, through their banks, The functions of the new Office of Executive to the System’s network. Depositors in nonmem­ Director will include the coordination and over-all ber banks can also arrange for such transfers, planning of the activities of the staff in carrying without charge for use of the System’s facilities, out the Board’s programs, and the handling of when the payment is made via a correspondent administrative affairs under the direction of the member bank. The System’s network provides ac­ Chairman of the Board and other Board members cess by member banks to communications among with delegated functions. the 12 Federal Reserve Banks and their branch Under this arrangement, the Board’s various banks in 24 additional locations. divisions will continue to deal directly with the Board on substantive policy matters. However, the CHANGE IN DISCOUNT RATE Office of Executive Director will exercise super­ vision over the Office of the Secretary and over The Board of Governors of the Federal Reserve the work of the several Program Directors pre­ System on July 22, 1971, announced its approval viously designated by the Board. of actions by the directors of the Federal Reserve Effective September 1, 1971, the Board of Banks of Cleveland, Richmond, Chicago, Kansas Governors appointed James L. Vining as Assistant City, and Dallas increasing the discount rate of Director in the Division of Federal Reserve Bank those banks from 43A per cent to 5 per cent, Operations, in charge of the planning and systems effective July 23. As of that date, the rate was 5 development function. per cent at all Reserve Banks. Mr. Vining, who joined the staff of the Federal Reserve Bank of Atlanta in 1966, has been an RECIPROCAL CURRENCY ARRANGEMENTS Assistant Vice President in the Planning Depart­ ment of that Bank since January 1970. He holds The Federal Reserve announced on August 12, a B.S. degree in Industrial Engineering from 1971, an increase in its reciprocal currency Oklahoma State University and an M.S. in In­ (“swap”) arrangements with the Swiss National dustrial Management from the Georgia Institute Bank and the National Bank of Belgium. of Technology. The arrangement with the Swiss National Bank has been increased by $400 million to $1 billion, RESIGNATION OF DIRECTOR and that with the National Bank of Belgium has been increased by $100 million to $600 million. Roy J. Fisher, who had served since January 1, The increases enlarge the System’s swap net­ 1970, as a Board-appointed director of the Nash­ work with 14 central banks and the Bank for ville Branch of the Federal Reserve Bank of International Settlements to $11.73 billion. Atlanta, resigned effective June 15, 1971, to take A swap arrangement is a renewable short-term an overseas position with the Aluminum Com­ facility under which a central bank agrees to pany of America. Mr. Fisher had been Manager exchange on request its own currency for the of Tennessee Operations of the Aluminum Com­ currency of the other party up to a maximum pany of America at Alcoa, Tennessee. amount over a limited period of time. 698 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve swap network was initiated NEW PUBLICATIONS in 1962. In all reciprocal currency arrangements Open Market Policies and Operating Procedures the Federal Reserve Bank of New York acts on —Staff Studies is available for distribution. It behalf of the Federal Reserve System under the was prepared as part of a study of the policies and direction of the Federal Open Market Committee. operating procedures implicit in the policy direc­ The Federal Reserve’s reciprocal currency arrange­ tives of the Federal Open Market Committee. ments are now as follows (in millions of dollars): This publication consists of the following papers: Austrian National Bank $ 200 “The FOMC Directive as Structured in the Late National Bank of Belgium 600 1960’s: Theory and Appraisal” by Stephen H. Bank of Canada 1,000 Axilrod; “Short-Run Targets for Open Market National Bank of Denmark 200 Bank of England 2,000 Operations” by Richard G. Davis; “Selection of a Bank of France 1,000 Monetary Aggregate for Use in the FOMC Direc­ German Federal Bank 1,000 tive” by Leonall C. Andersen; “Determining the Bank of Italy 1,250 Bank of Japan 1,000 Optimum Monetary Instrument Variable” by John Bank of Mexico 130 Kareken, Thomas Muench, Thomas Supel, and Netherlands Bank 300 Bank of Norway 200 Neil Wallace; “The Trade-Off Between Short- and Bank of Sweden 250 Long-Term Policy Goals” by James L. Pierce; Swiss National Bank 1,000 “Tactics and Strategy in Monetary Policy” by Ben­ Bank for International Settlements Swiss francs/dollars 600 jamin M. Friedman; “Rules-of-Thumb for Guid­ Other European currencies/dollars 1,000 ing Monetary Policy” by William Poole; and Total $11,730 “Monetary Aggregates and Money Market Con­ ditions in Open Market Policy” by Stephen H. Axilrod. CHANGES IN OTC MARGIN STOCKS The first of three volumes on the Reappraisal The Board of Governors has announced several of the Federal Reserve Discount Mechanism is changes, effective Monday, August 16, 1971, in also available for distribution. Based on a 3-year its “List of OTC Margin Stocks” that was issued System-wide study, this publication gives the back­ in revised form July 12, 1971. The list was first ground and sets forth proposals for the redesign published on July 8, 1969. of Federal Reserve lending facilities. Volume 1 Reece Corporation, The, $1.00 par common, is consists of the following: “Report of a System added to the list. Committee” by the Steering Committee; “Re­ The following stocks are deleted from the list: port on Research Undertaken in Connection with Bio-Dynamics, Inc., no par common; Coldwell, a System Study” by Bernard Shull; “Transmittal Banker and Company, no par common; Equimark Memoranda;” “Borrowings Data;” “Rationale and Corporation, $5.00 par common; Gifford-Hill & Objectives of the 1955 Revision of Regulation A” Company, $2.00 par common; Hasbro Industries, by Bernard Shull; “Evolution of the Role and the $.50 par common; James, Fred S. & Company, Functioning of the Discount Mechanism” by Clay Inc., $.50 par common; Philadelphia Suburban J. Anderson; and “The Discount Mechanism in Corporation, $1.00 par common; and United Life Leading Industrial Countries Since World War & Accident Insurance Company, $1.00 par II” by George Garvy. common. Copies may be obtained from Publications Three other changes have been made: Motor Services, Division of Administrative Services, Club of America Companies, $.50 par common Board of Governors of the Federal Reserve Sys­ now reads Motor Club of America, $.50 par com­ tem, Washington, D.C. 20551. The price of the mon; New Jersey National Bank, $5.00 par com­ open market report is $2.00 per copy; in quantities mon is changed to NJN Bancorporation, $5.00 of 10 or more sent to one address, $1.75 each. par common; and Pittsburgh National Corpo­ The price of the discount study is $3.00 per copy; ration, $10.00 par common, becomes Pittsburgh in quantities of 10 or more sent to one address, National Corporation, $5.00 par common. $2.50 each. 699 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Summary of Business Conditions Released for publication August 16 Industrial production and retail sales declined in to July at an annual rate of 8.5 million units. Out­ July. Employment rose as did the unemployment put of television sets, some appliances, and most rate and wholesales prices increased somewhat other home goods, as well as consumer nondurable further. Commercial bank credit, the money goods, also changed little. Production of manu­ supply, and time and savings deposits increased. facturing, commercial, and defense equipment Between mid-July and August 13, yields on U S. declined. Output of copper and coal was reduced Government securities rose, while yields on sea­ because of strikes and the secondary effects of the soned corporate and municipal bonds changed railroad strike, and the decline in production of little on balance. steel products reflected reductions in orders prior The President on August 15 announced a far- to the settlement of the new wage contract. Output ranging economic program dealing with prices, of nondurable materials in July was maintained at wages, fiscal policy, foreign trade, and interna­ the June level. tional financial relationships. EMPLOYMENT INDUSTRIAL PRODUCTION Nonfarm payroll employment declined 190,000 Industrial production declined 0.8 per cent in in July with the largest reduction in manufactur­ July. The new revised total index was at 106.0 ing, mainly in the durable goods sector. Employ­ per cent in July and 106.9 in June on the 1967 ment increased modestly in trade and State comparison base year and was 5.3 per cent below and local government but declined slightly further the 1969 high but was 3.3 per cent above the low in services. The average workweek in manu­ last November. Output declines in July were cen­ facturing declined 0.1 hour to 39.9 hours and was tered in the material-producing sectors, reflecting 0.2 hour below the year-earlier level. The unem­ cutbacks in steel inventories and strikes in some ployment rate rose to 5.8 per cent in July from other industries. Production of total equipment 5.6 per cent in June, reflecting somewhat faster was off somewhat further but output of consumer growth in the labor force than employment in goods was little changed. July. Auto assemblies, after allowance for the model RETAIL SALES changeover period, were unchanged from June The value of retail sales declined almost 1 per cent INDUSTRIAL PRODUCTION from June to July but was 7 per cent above a RATIO SCALE, 1967=100 year earlier, according to the advance report. Non­ 120 durable goods sales were 1 per cent lower than in June, largely because of a drop in sales of apparel 100 and general merchandise. Durable goods sales were virtually unchanged from June. WHOLESALE AND CONSUMER PRICES 120 Wholesale prices, seasonally adjusted, rose 0.2 100 per cent between June and July. The index of industrial commodities advanced 0.7 per cent, with increases for lumber and wood products and 80 metals and metal products particularly important. But average prices of farm and food products dropped 1.0 per cent, with large declines for fresh fruits and vegetables, grains, and eggs. F.R. indexes, seasonally adjusted. Latest figures: July. 700 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Consumer prices rose 0.5 per cent in June, after ciated with reduced inflows of consumer-type time seasonal adjustment, with substantial advances for and savings deposits. Sales of large negotiable CD’s fruits and vegetables, beef, gasoline, and houses. were larger than in other recent months. Among services, home repair and maintenance and Net borrowed reserves of member banks aver­ public transportation costs rose sharply. aged about $670 million over the 4 weeks ending July 28 compared with $300 million in June. BANK CREDIT, DEPOSITS, AND RESERVES Member bank borrowings from the Federal Re­ serve increased further and excess reserves de­ Commercial bank credit adjusted for transfers of clined somewhat. loans between banks and their affiliates increased $2.9 billion in July, about the same as the average monthly increase in the second quarter. Loan SECURITY MARKETS expansion accounted for almost all of the July growth with most major categories increasing. Yields on long-term Treasury bills rose by 20 to Acquisitions of municipal and Federal agency 30 basis points from mid-July to August 13, prior securities picked up considerably from the reduced to the President’s announced changes in economic June rate and were at a slightly faster pace than policy. Shorter bill maturities fluctuated fairly over the second quarter. Holdings of U.S. Govern­ widely over the month, declining on balance by ment securities declined, however, following a around 10 to 15 basis points. The 3-month bill sharp rise in June. was bid at around 5.20 per cent, compared with The money stock increased at an annual rate about 5.35 per cent a month earlier. Yields on of 10.6 per cent in July, a little less than in the Treasury notes and bonds rose from 20 to 40 second quarter. Expansion in time and savings basis points, with the greater increases in short deposits at all commercial banks—at an annual maturities. rate of 11.3 per cent—was also slower than in the Yields on new corporate securities rose over the second quarter and sharply below the very rapid period, while yields on seasoned issues, as well as first-quarter pace. The slowing in July was asso­ on municipal issues, changed little on balance. PRICES INTEREST RATES Wholesale Consumer 1967=100 PER CENT Bureau of Labor Statistics. “Farm products and foods” is BLS Discount rate, range or level for all F.R. Banks. Weekly “Farm products, and processed foods and feeds.” Latest figures: average market yields for U.S. Govt, bonds maturing in 10 Consumer, June; Wholesale, July. /ears or more and for 90-day Treasury bills. Latest figures: week ending Aug. 7. 701 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 Demand deposit ownership A 33 Loan sales by banks A 33 Open market paper A 34 Interest rates A 37 Security markets A 38 Stock market credit A 39 Savings institutions A 41 Federally sponsored credit agencies A 42 Federal finance A 44 U.S. Government securities A 47 Security issues A 50 Business finance A 52 Real estate credit A 56 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 □ AUGUST 1971 U.S. STATISTICS— Continued A 60 Industrial production A 64 Business activity A 64 Construction A 66 Labor force, employment, and earnings A 68 Consumer prices A 68 Wholesale prices A 70 National product and income A 72 Flow of funds (flows through Q1 1971) INTERNATIONAL STATISTICS: A 74 U.S. balance of payments A 75 Foreign trade A 76 U.S. gold transactions A 77 U.S. reserve assets; position in the IMF A 78 International capital transactions of the United States A 91 Foreign exchange rates A 92 Money rates in foreign countries A 93 Arbitrage on Treasury bills A 94 Gold reserves of central banks and governments A 95 Gold production TABLES PUBLISHED PERIODICALLY (see above for flow of funds): Number of banking offices: A 96 Analysis of changes A 97 On, and not on, Federal Reserve Par List A 98 Banking offices and deposits of banks in holding company groups, December 31, 1970 A 107 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) include not fully guaranteed issues) as well as direct a negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” also includes municipalities, special districts, and other politi­ A heavy vertical rule is used in the following in­ stances: (1) to the right (to the left) of a total when cal subdivisions. the components shown to the right (left) of it add to In some of the tables details do not add to totals that total (totals separated by ordinary rules include because of rounding. more components than those shown), (2) to the right The footnotes labeled Note (which always appear (to the left) of items that are not part of a balance last) provide (1) the source or sources of data that do sheet, (3) to the left of memorandum items. not originate in the System; (2) notice when figures are “U.S. Govt, securities” may include guaranteed issues estimates; and (3) information on other characteristics of U.S. Govt, agencies (the flow of funds figures also of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Page Annually—Continued Issue Page Flow of funds. Aug. 1971 A-72—A-73.9 Banks and branches, number, by class and State................................ Apr. 1971 A-94—A-95 Semiannually Flow of funds: Assets and liabilities: Ba A nk na in ly g s i o s f f o ic f e c s h : anges in number---- Aug. 1971 A-96 1 19 9 7 5 0 9 - d 7 a 0 t . a .. . ( .. r . e .. v .. i . s .. e .. d .. ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . J M un ar e . 1 1 9 9 7 7 1 1 A- A 71 -7 .1 1 0 .2 — — A A -7 -7 1 1 .2 .3 1 On P , ar a n L d i st n , o n t u o m n b , e F r. e .. d .. e .. r . a .. l . .. R ... e .. s . e .. r .. v .. e Aug. 1971 A-97 Flo 1 w 96 s 6 : -70........................................ Mar. 1971 A-70—A-71.9 1970 selected data (revised)........ June 1971 A-70—A-71.1 Annually Income and expenses: Bank holding companies: Federal Reserve Banks.................. Feb. 1971 A-94—A-95 List of, Dec. 31, 1970..................... June 1971 A-110 Insured commercial banks............ June 1971 A-94—A-95 Banking offices and deposits of Member banks: group banks, Dec. 31, 1970.... Aug. 1971 A-98 Calendar year............................. June 1971 A-94—A-103 Income ratios.............................. June 1971 A-104—A-109 Banking and monetary statistics, Operating ratios......................... July 1971 A-100—A-105 1970........................................... Feb. 1971 A-98—A-99 Mar. 1971 A-94—A-106 Stock exchange firms, detailed debit July 1971 A-96—A-99 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 □ AUGUST 1971 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Treas­ Period or date U.S. Govt, securities 1 Special ury Dis­ Gold Drawing cur­ u H n e d l e d r co a u n n d ts Float 2 O F t . h R e . r Total 4 stock ce R rt i i g fi h c t a s te re o n u c t y ­ Bought repur­ ad­ assets 3 account stand­ Total out­ chase vances ing right agree­ ment Averages of daily figures 1939—Dec........................... 2,510 2,510 8 83 2,612 17,518 2,956 1941—Dec........................... 2,219 2,219 5 170 2,404 22,159 3 \ 239 1945—Dec........................... 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec........................... 20,345 20,336 9 142 1,117 21,606 22,879 4,629 1960—Dec........................... 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—De c 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966—De c 43,760 43,274 486 570 2,383 46,864 13,158 6,284 1967—De c 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 2,204 64,100 10,367 6,841 1970—Jul y 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—Ja..............................n 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 May......................... 64,714 64,368 346 330 2,704 1,076 68,926 10,448 400 7,357 June......................... 64,642 64,574 68 453 2,690 979 68,834 10,332 400 7,419 July*......................... 66,001 65,652 349 821 2,972 1,150 71,024 10,332 400 7,437 Week ending— 1971—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 64,764 178 267 2,787 851 68,955 10,332 400 7,372 June 2................... 64,877 64,777 100 646 2,461 923 69,007 10,332 400 7,390 9................... 64,432 64,432 153 2,750 911 68,310 10,332 400 7,404 16................... 64,385 64,385 403 2,627 959 68,437 10,332 400 7,417 23................... 64,302 64,117 185 619 2,917 1,007 68,936 10,332 400 7,429 30................... 65,352 65,295 57 750 2,588 1,047 69,802 10,332 400 7,434 July 7................... 65,772 65,461 311 661 2,965 1,092 70,586 10,332 400 7,431 14................... 65,826 65,669 157 991 3,179 1,145 71,216 10,332 400 7,430 21*................. 66,435 65,694 741 1,122 3,203 1,156 71,997 10,332 400 7,440 28*................. 66,055 65,721 334 545 2,776 1,187 70,641 10,332 400 7,443 End of month 1971—May......................... 64,764 6 64,764 1,051 2,414 927 69,268 10,332 400 7,390 June......................... 65,518 6 65,518 446 2,549 1,086 69,661 10,332 400 7,420 July*......................... 65,841 6 65,841 778 2,608 1,209 70,491 10,332 400 7,439 Wednesday 1971—May 5................... 65,316 6 64,043 1,273 802 2,856 1,216 70,329 10,732 400 7,331 12................... 64,185 6 63,921 264 28 2,365 1,324 67,960 10,332 400 7,350 19................... 65,148 6 64,530 618 984 2,779 826 69,885 10,332 400 7,360 26................... 64,971 6 64,764 207 1,274 2,520 871 69,738 10,332 400 7,381 June 2................... 64,959 6 64,809 150 37 2,609 958 68,634 10,332 400 7,396 9................... 64,613 6 64,613 590 2,371 955 68,591 10,332 400 7,414 16................... 63,993 6 763,993 261 2,788 984 68,088 10,332 400 7,426 23................... 64,981 6 64,640 341 631 2,605 1,047 69,390 10,332 400 7,434 30................... 65,518 6 65,518 446 2,549 1,086 69,661 10,332 400 7,434 July 7*................. 65,118 6 765,118 471 2,960 1,123 69,733 10,332 400 7,430 14*................. 65,636 6 65,636 1,842 3,291 1,157 71,983 10,332 400 7,431 21*................. 66,680 6 65,704 976 1,561 2,778 1,201 72,302 10,332 400 7,441 28*................. 65,762 6 65,762 781 2,482 1,205 70,284 10,332 400 7,449 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o 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 rency T u re r a y s­ with F.R. Banks Other F.R. c t c u i i i o n l r a n ­ ­ h c i o n a g l s d h s ­ T u re r a y s­ F ei o g r n ­ Other2 co F a u . c R n ­ t . s3 c b a i a p l l i n i i a t t d i a ­ e l s 3 W F.R ith . r C e a n n u c d r y ­ Total Banks coin 5 Averages of daily figures 7,609 2,402 616 739 248 11,473 11,473 .1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 .1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 . 1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 .1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 .1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 . 1965—Dec. 44,579 1,191 291 164 429 83 19,568 4,262 23,830 . 1966—Dec. 47.000 1,428 902 150 451 -204 20,753 4,507 25,260 . 1967—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 . 1968—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 54,699 450 1,147 191 763 2,253 23,170 4,958 28,128 ..1970—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 25,251 5,168 30,419 ............May 57,969 491 652 155 698 2.227 24,793 5,230 30,023 ............June 58,847 471 1,546 161 714 2,251 25,203 5,311 30,514 ............July? Week ending— 56,715 519 1,035 154 714 2,262 25,497 5,283 30,780 ,.1971— 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 25,260 4,986 30,246 .......................26 57,482 506 890 187 703 2,304 25,057 5,219 30,276 .June 2 57,851 494 394 151 695 2,328 24,534 5,352 29,886 ........... 9 58,078 494 9 150 695 2.148 25,012 5,213 30,225 ..........16 58,005 493 670 155 689 2,169 24,916 5,003 29,919 ..........23 58,011 480 1,464 166 693 2,233 24,921 5,371 30,292 ..........30 58,671 460 1,535 170 707 2,307 24,898 5,415 30,313 .July 7 59,182 460 1,778 162 721 2,264 24,811 5,443 30,254 ...........14 58,955 470 1,602 166 703 2,183 26,089 4,880 30,969 ..........21* 58,683 488 1,383 137 708 2,236 25,183 5,419 30,602 ...........28 p End of month 57.393 507 805 208 676 2,302 25,499 5,219 30,718 .1971—May 58.393 454 1,274 199 688 2,256 24,550 5,372 29,922 ............June 58,547 482 1,115 162 754 2,291 25,311 5,456 30,767 ............July* Wednesday 57,008 519 493 148 685 2,313 27,626 5,283 32,909 .1971—May 5 57,382 500 1,112 161 687 2,149 24,051 5,381 29,432 .....................12 57,306 507 1,224 195 646 2.197 25,902 5,018 30,920 .....................19 57,373 505 887 156 671 2,241 26,017 4,984 31,001 .....................26 57,811 507 869 140 751 2,326 24,358 5,219 29,577 .June 2 58,121 498 7 194 668 2,345 24,904 5,347 30,251 ..........9 58.183 501 7 179 704 2,125 24,547 5,201 29,748 ..........16 58,050 493 719 181 701 2.197 25,215 5,004 30,219 ..........23 58,394 466 1,274 199 688 2,256 24,550 5,372 29,922 ..........30 59.184 468 2,065 196 713 2,321 22,948 5,434 28,382 .July 7* 59,230 468 2,516 163 694 2,133 24,943 5,450 30,393 ..........14* 58,916 492 1,110 115 698 2,211 26,934 4,880 31,814 ..........21* 58,781 493 1,413 149 722 2,251 24,656 5,419 30,075 ......28* 1 Includes Federal agency obligations. 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning with 1960 reflects a minor change in concept; see Feb. thereafter. Beginning with Jan. 1963, figures are estimated except for 1961 Bulletin, p. 164. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 3 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. of-business figures for reserve period 2 weeks previous to report date. liabilities and capital” are shown separately; formerly, they were 6 Includes securities loaned—fully secured by U.S. Govt, securities netted together and reported as “Other F.R. accounts.” pledged with F.R. Banks. 4 Includes industrial loans and acceptances, until Aug. 21, 1959, when 7 Reflects securities sold, and scheduled to be bought back, under industrial loan program was discontinued. For holdings of acceptances matched sale/purchase transactions. on Wed. and end-of-month dates, see tables on F.R. Banks on following pages. See also note 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ AUGUST 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 l a d l qu R ir e e ­ d 1 Excess r F i o n a . w R g t s . ­ s F e r r r e v e ­ e e s T h o e t l a d l qu R ir e e ­ d 1 Excess r i F o n a . g w R t 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 1 Excess r F i o n a . g w R t s . ­ s F e r r r e v e e ­ e s Banks Banks Banks 1939—Dec.. 11,473 6,462 5,011 3 5,008 5,623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec.. 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec.. 16,027 14,536 1,491 334 1,157 4,118 4,070 48 192 -144 939 924 14 14 1950—Dec.. 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 1960—Dec.. 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1963—Dec.. 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 26 -21 1964—Dec.. 21,609 21,198 411 243 168 4,083 4,062 21 35 -14 1,083 1,086 -3 28 -31 1965—Dec.. 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1967—Dec.. 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—Dec.. 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 1,184 15 85 -70 1969—Dec.. 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 27 -9 1970—July.. 28,128 27,987 141 1,358 -1,217 5,315 5,306 9 269 -260 1,290 1,293 -3 129 -132 Aug.. 28,349 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—Jan... 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. 30,419 30,107 312 330 -18 5,837 5,791 46 113 -67 1,436 1,421 15 13 2 J une. 30,023 29,892 131 453 -322 5,637 5,674 -37 90 -127 1,387 1,405 -18 21 -39 July 30,515 30,375 140 821 -681 5,729 5,753 -24 86 -110 1,407 1,408 -1 28 -29 Week ending- 1970—July 1.. 27,823 27,550 273 991 -718 5,221 5,176 45 119 -74 1,253 1,267 -14 -14 8.. 27,847 27,773 74 1,294 -1,220 5,188 5,233 -45 389 -434 1,286 1,275 11 36 -25 15.. 28,222 27,992 230 1,681 -1,451 5,439 5,381 58 493 -435 1,308 1,306 2 125 -123 22.. 28,373 28,188 185 1,386 -1,201 5,418 5,384 34 166 -132 1,316 1,311 5 200 -195 29.. 28,183 28,030 153 1,231 -1,078 5,259 5,260 -1 80 -81 1,268 1,286 -18 182 -200 June 16.. 30,225 29,959 266 403 -137 5,742 5,729 13 129 -116 1,473 1,467 6 6 23.. 29,919 29,709 210 619 -409 5,648 5,607 41 103 -62 1,338 1,351 -13 77 -90 30.. 30,292 30,060 232 750 -518 5,676 5,699 -23 107 -130 1,405 1,394 11 11 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 27. . 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 80 5,569 5,631 -62 -62 1,367 1,351 16 16 14.. 29,625 29,417 208 150 58 5,748 5,652 96 17 79 1,346 1,367 -21 -21 21.. 1 29,938 29,857 81 84 -3 5,728 5,784 -56 -56 1,381 1,384 -3 -3 28.. 30,157 30,109 48 176 -128 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 -204 5,986 5,967 19 143 -124 1,426 1,455 -29 41 -70 26.. 30,246 30,072 174 267 -93 5,768 5,781 -13 100 -113 1,435 1,416 19 18 1 June 2. 30,276 29,991 285 646 -361 5,693 5,638 55 171 -116 1,387 1,396 -9 -9 9. 29,886 29,813 73 153 -80 5,648 5,680 -32 46 -78 1,414 1,413 1 1 July 7.. 30,313 30,036 277 661 -384 5,689 5,663 26 34 -8 1,388 1,374 14 14 14.. 30,254 30,249 5 991 -986 5,747 5,814 -67 252 -319 1,390 1,412 -22 -22 21», 30,969 30,640 329 1,122 -793 5,902 5,855 47 65 -181 1,460 1,451 9 116 -107 28?, 30,602 30,526 76 545 -469 5,676 5,718 -42, 3° -72 1,381 1,383 -2 7 -9 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) Other reserve city banks Country banks Reserves Reserves Period Borrow­ Borrow­ ings at Free ings at Free F.R. reserves F.R. reserves T h o e t l a d l Required i Excess Banks T h o el ta d l 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 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 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. 11,074 11,118 -44 682 -726 10,449 10,270 179 278 -99 11,174 11,178 -4 424 -428 10,496 10,344 152 183 -31 11,407 11,375 32 369 -337 10,605 10,432 173 107 66 11,319 11,270 49 338 -289 10,492 10,326 166 101 65 11,216 11,274 -58 301 -359 10,619 10,437 182 53 129 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 11,974 11,962 12 294 -282 11,151 10,938 213 35 178 ............................1971—Jan. 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 .......................................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 11,923 11,832 91 136 -45 11,223 11,063 160 68 92 11,743 11,735 8 181 -173 11,256 11,078 178 161 17 11,915 11,923 -8 441 -449 11,464 11,291 173 266 -93 ........................................July* Week ending— 10,922 10,879 43 539 -496 10,427 10,228 199 333 -134 1970—July 1 10,950 11,040 -90 629 -719 10,423 10,225 198 240 -42 ........................................... 8 11,121 11,136 -15 789 -804 10,354 10,169 185 274 -89 ...........................................15 11,216 11,210 6 699 -693 10,423 10,283 140 321 -181 ...........................................22 11,123 11,141 -18 683 -701 10,533 10,343 190 286 -96 ...........................................29 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 ..................................Feb. 3 11,728 11,702 26 229 -203 10,968 10,731 237 18 219 ...........................................10 11,733 11,753 -20 380 -400 10,984 10,721 263 46 217 ...........................................17 11,744 11,673 71 228 -157 10,985 10,808 177 22 155 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 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 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 ...........................................19 11,820 11,780 40 93 -53 11,223 11,095 128 56 72 11,891 11,857 34 317 -283 11,305 11,100 205 158 47 11,693 11,753 -60 52 -112 11,131 10,967 164 55 109 11,812 11,749 63 113 -50 11,198 11,014 184 161 23 11,703 11,640 63 286 -223 11,230 11,111 119 153 -34 ...........................................23 11,827 11,759 68 324 -256 11,384 11,208 176 308 -132 ...........................................30 11,847 11,801 46 372 -326 11,389 11,198 191 255 -64 .................................July 7 11,786 11,876 -90 498 -588 11,331 11,147 184 241 -57 ...........................................14 12,129 12,033 96 605 -509 11,478 11,301 177 336 -159 11,937 11,965 -28 295 -323 11,608 11,460 148 213 -65 .........................................*28 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 □ AUGUST 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 ding— s E e x r r v c e e e ­ s ss 1 r a o B t B w a F o n in . r k R ­ g s . s F f t i b e r n u N a a d t n n n e e e d t r r s k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e o u v c r g i f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c t T r o t a o i - o n w ta n s a l ­ s y 2 b c o b u P h a f y a u n n s i r k n e e ­ s g s t s b o S e a f a l n l l n i e k n e s g s t d L ea o t l o a e n r s s3 de f r B i a r o n o o l w g e m r s r ­ ­ s4 lo N a e n t s Total—46 banks 1971—June 2............ 121 328 5,814 -6,021 46.8 9,881 4,067 3,682 6,199 385 1,390 267 1,123 9............ -16 74 6,686 -6,775 52.7 11,059 4,373 3,890 7,169 483 1,530 304 1,226 16............ 31 104 6,428 -6,501 50.2 10,581 4,152 3,881 6,699 271 1,339 356 984 23............ 123 264 6,134 -6,275 49.6 9,898 3,764 3,380 6,519 385 1,169 533 635 30............ 82 239 4,907 -5,065 39.5 8,814 3,907 3,495 5,320 412 1,207 472 735 July 7............ 166 149 6,145 -6,128 47.9 10,668 4,523 3,818 6,850 705 1,271 425 846 14........... -39 561 7,020 -7,619 58.4 10,981 3,961 3,587 7,394 373 1,360 253 1,108 21........... 58 390 5,815 -6,148 46.5 9,975 4,160 3,497 6,478 664 1,028 368 660 28........... -3 97 4,347 -4,447 34.2 8,986 4,639 3,484 5,503 1,156 1,075 347 727 8 in New York City 1971—June 2............ 54 171 2,734 -2,852 55.6 3,657 923 923 2,734 952 165 787 9............ 14 46 2,869 -2,902 56.2 3,821 952 911 2,910 41 1,071 156 915 16............ 12 86 2,849 -2,923 56.1 3,799 950 934 2,865 16 988 173 815 23............ 60 103 2,459 -2,503 49.0 3,316 857 803 2,513 54 788 204 585 30............ 21 107 1,889 -1,976 38.1 2,793 904 883 1,910 21 893 185 708 July 7............ 45 2,601 -2,556 49.7 3,658 1,057 872 2,787 186 923 162 761 14............ -11 252 2,894 -3,157 59.7 3,649 755 755 2,894 884 71 813 21............ 27 47 2,504 -2,524 47.3 3,402 898 898 2,504 805 74 731 28............ — 20 9 1,490 -1,520 29.3 2,601 1,111 1,043 1,558 68 862 81 781 38 outside New York City 1971—June 2............ 67 157 3,080 -3,170 41.0 6,224 3,144 2,759 3,465 385 438 102 336 9............ -30 27 3,817 -3,874 50.3 7,238 3,421 2,979 4,259 442 459 148 311 16............ 20 19 3,580 -3,578 46.2 6,782 3,202 2,947 3,835 255 351 183 169 23............ 64 161 3,675 -3,772 49.9 6,582 2,907 2,577 4,006 331 381 330 51 30............ 61 132 3,018 -3,089 40.4 6,021 3,004 2,612 3,409 391 314 287 27 July 7........... 121 149 3,545 -3,572 46.8 7,010 3,466 2,947 4,063 519 349 264 85 14............ -28 308 4,126 -4,462 57.4 7,332 3,206 2,832 4,500 373 476 181 295 21............ 30 344 3,311 -3,624 46.0 6,573 3,262 2,599 3,974 664 223 294 -71 28............ 17 88 2,857 -2,927 37.5 6,385 3,529 2,441 3,945 1,088 213 267 -54 5 in City of Chicago 1971—June 2........... 10 1,216 -1,206 95.0 1,824 609 546 1,278 63 32 32 9........... -5 1,412 -1,417 110.0 2,076 664 616 1,460 48 97 97 16........... 6 1,284 -1,278 95.2 2,014 729 663 1,351 67 60 60 23............ -7 77 1,334 -1,418 115.2 1,917 583 551 1,366 32 89 89 30............ 2 11 1,139 -1,148 90.4 1,673 534 485 1,188 49 100 100 July 7............ 16 1,419 -1,404 112.4 1,984 564 518 1,465 46 98 98 14............ -10 1,711 -1,720 133.9 2,232 521 499 1,734 23 84 84 21............ -1 116 1,091 -1,207 91.3 1,656 565 493 1,163 72 46 46 28............ 49 7 1,139 -1,098 87.4 1,686 546 527 1,158 19 60 60 33 others 1971—June 2............ 57 157 1,864 -1,964 30.4 4,400 2,535 2,213 2,187 323 406 102 304 9............ -25 27 2,405 -2,457 38.3 5,162 2,758 2,364 2,799 394 362 148 214 16............ 14 19 2,295 -2,300 36.0 4,768 2,473 2,284 2,484 189 291 183 109 23............ 70 84 2,341 -2,355 37.2 4,666 2,324 2,026 2,640 299 292 330 -38 30............ 60 122 1,879 -1,941 30.4 4,348 2,470 2,127 2,221 342 214 287 -73 July 7........... 105 149 2,125 -2,169 33.9 5,027 2,901 2,429 2,598 473 251 264 -12 14........... -18 308 2,416 -2,742 42.3 5,100 2,685 2,334 2,766 350 392 181 211 21........... 31 228 2,220 -2,417 36.8 4,918 2,698 2,106 2,812 592 177 294 -117 28............ -31 81 1,717 -1,830 27.9 4,700 2,983 1,913 2,787 1,069 153 267 -114 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

AUGUST 1971 a 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 1 Sec. 10(b) 2 Rate on Rate on Rate on Ju 1 l 9 y 7 1 31, Ef d fe a c t t e ive Pre r v at io e us Ju 1 l 9 y 7 1 31, Ef d fe a c t t e ive Pre r v at i e ous Ju 1 l 9 y 7 1 31, Ef d fe a c t t e ive Pre r v at io e us Boston.............................................. 5 July 19, 1971 434 51/2 July 19, 1971 514 7 July 19, 1971 634 New York........................................ 5 July 16, 1971 434 51/2 July 16, 1971 514 7 July 16, 1971 634 Philadelphia..................................... 5 July 16, 1971 434 51/2 July 16, 1971 514 7 July 16, 1971 634 Cleveland......................................... 5 July 23, 1971 434 51/2 July 23, 1971 51/4 7 July 23, 1971 634 Richmond........................................ 5 July 23, 1971 434 51/2 July 23, 1971 514 7 July 23, 1971 634 Atlanta............................................. 5 July 19, 1971 434 51/2 July 19, 1971 514 7 July 19, 1971 634 Chicago............................................ 5 July 23, 1971 434 51/2 July 23, 1971 514 7 July 23, 1971 634 5 July 16, 1971 434 51/2 July 16, 1971 514 7 July 16, 1971 634 Minneapolis..................................... 5 July 19, 1971 434 51/2 July 19, 1971 514 7 July 19, 1971 634 Kansas City..................................... 5 July 23, 1971 434 51/2 July 23, 1971 514 7 July 23, 1971 634 Dallas............................................... 5 July 23, 1971 434 51/2 July 23, 1971 514 7 July 23, 1971 634 San Francisco.................................. 5 July 16, 1971 434 51/2 July 16, 1971 514 7 July 16, 1971 634 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 % !/2 1957—Aug. 9. 3 -31/2 3 1965—Dec. 6. 4 -41/2 41/2 23. 3^2 31/2 13. 41/2 41/2 1946—Apr. 25............ t %-l 1 Nov. 15. 3 -31/2 3 May 10.......... 1 1 Dec. 2. 3 3 1967—Apr. 7. 4 -41/2 4 14. 4 4 1948—Jan. 12........... 1 -11/4 114 1958—Jan. 22. 2Y4-3 3 Nov. 20. 4 -41/2 41/2 1 9 11/4 114 24. 2*4-3 23/4 27. 41/2 41/2 Aug. 2 1 3 3 . . . . . . . . . . . . . . . . . . . . . . . 1*4 1 - 1 1 /2 1/2 1 H 1 / / 2 2 Mar. 1 7 3 . . 2 2 V 14 4 - - 3 2U 2 2 1 1 4 4 1968—Mar. 2 1 2 5 . . 41/ 5 2-5 4 5 ^ 1 1 9 9 5 5 0 3— — J A a u n g . . 2 2 2 1 3 5 1 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 3 / 2 2 l 4 - 3 - 4 2 134 2 2 l l 3 34 4 S A M A e u p a p g r y t . . . 2 2 1 1 1 9 3 1 5 2 8 . . . . . . l 1 l 3 3 3 4 / 4 2 4 2 l ~ - V — 3/ 2 2 4 4 21/4 2 2 2 l l l 1 3 3 3 4 4 4 4 A A D u p ec g r. . . 2 2 3 1 1 1 0 6 6 9 0 8 . . . . . . 5 5 5 1 1 / 4 5 5 5 4 1 1 - - 1 - 5 5 / / 5 4 2 2 1 1 1 / / / 2 2 2 5 5 5 5 5 5 1 1 1 1 1 1 / / / / / 4 2 2 2 2 2 Oct. 24. 2 -21/2 2 1954—Feb. 1 5 5 ... ......... l34 l - 34 2 1 1 3 34 4 Nov. 7. 21/2 21/2 1969—Apr. 4 8 . . 51/ 6 2-6 6 6 Apr. 14............ 11/2-134 134 1959—Mar. 6. 2!/2-3 3 1970—Nov. 11. 534-6 6 1 6 11/2-134 11/2 16. 3 3 13. 534-6 534 May 21............ 11/2 11/2 May 29. 3 -31/2 31/2 16. 534 534 1955—Apr. 1 1 5 4 . . . . . . . . . . . . . . . . . . . . . . . . H H / /2 2- -1 1 3 % 4 1 1 1 34 /2 J S u e n p e t. 1 1 1 1 8 2 . . . 31 4 / 3 2 1 - / 4 2 4 4 31 /2 Dec. 4 1 . . 5 5 1 1 / / 2 2 - - 5 5 3 3 4 4 5 51 34 /2 May 2............ l34 134 11. 51/2 51/2 S N A e o u p v g t . . . 1 1 1 5 9 4 2 3 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 i 1 1 3 3 4 4 2 4 - - 1 - - - 2 2 2 2 2 4 1 1 1 1 i / 4 4 4 4 2 2 2 2 2 2 l 1 1 1 34 / 4 4 2 1960— A S Ju e u n p g e t . . 1 1 1 9 0 2 4 3 . . . . . , 3 3 3 . 1 1 / / 3 3 2 2 1 - / - - 3 2 4 4 1 /2 4 3 3 3 3 1 1 / /2 2 1971—Jan. 2 2 1 1 2 9 5 9 8 . . . . . . 5 5 5 14 5 5 - - - 1 5 5 5 4 1 1 1 / 4 4 2 5 5 5 5 5 1 1 1 4 4 4 23............ 21/2 21/2 1963—July 17.. 3 -3i/2 31/2 Feb. 1 1 9 3 . . . 4 4 * 34 4 -5 5 434 1956—Apr. 2 1 3 0 ... ......... 2 2 1 34 /2 - - 3 3 2 2 3 3 4 4 26. . 31/2 31/2 July 2 1 3 6 . . . . 4 5 34-5 5 5 Aug. 24............ 234-3 3 1964—Nov. 24. 31/2-4 4 31............ 3 3 30. 4 4 In effect July 31, 1971. 5 5 ‘ t Preferential rate of l/i 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; June I, 4.50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ AUGUST 1971 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4,5 deposits 2 deposits 2>4 (all classes of banks) Time depos­ its Reserve Country Other C r b e e c s a n i e n t t r y k r v a s e l b s c R a e i n r t e v y k - e s C ba o tr n u y k n s ­ b cl a ( a o n a s k l f s l e s s ) Effective date 1 $ U 5 n c m d it e i y l r ­ ba $ n O 5 k v m s e i r l ­ $ U 5 n m de b il r a ­ nk $ s O 5 v m e i r l ­ d S e in i p a t g s v o s ­ s­ $ U 5 ti n m m d e e i l r ­ d ep $ O 5 o s v m it e s i r l ­ lion lion lion lion lion lion In effect Dec. 31, 1949. 22 18 12 1966—July 14,21, 6 16% « 12 64 6 4 Sept. 8, 15. 1951—Jan. 11,16......... 23 19 13 Jan. 25, Feb. 1. 24 20 14 1967—Mar. 2. 3% 3% 1953—July 9,1........... 22 19 13 Mar. 16. 3 3 1954—June 24, 16......... 21 July 29, Aug. 1. 20 18 12 1968—Jan. 11,18.... 16% 17 12 12% 1958—Feb. 27, Mar. 1. 19% 17% UK Mar. 20, Apr. 1. 19 17 1969—Apr. 17............ 17 17% 12% 13 Apr. 17................ Apr. 24................ !!* 16% 1970—Oct. 1............... 1960—Sept. 1................ 17% Nov. 24................ 12 In effect July 31, 1971. 17 17% 12% 13 Dec. 1................ 16% 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 per cent. Regulation D imposes a similar reserve requirement on bor­ MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4. 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. 20. 75 75 1946—Jan. 21 1947—Jan. 31. 100 100 1947—Feb. 1 1949—Mar. 29. 75 75 1949—Mar. 30 1951—Jan. 16. 50 50 1951—Jan. 17 1953—Feb. 19. 75 75 1953—Feb. 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

AUGUST 1971 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits............. 41/2 12 months or more.. 4 4 Other time deposits:2 Less than 12 months. 3Vi 3^2 Multiple maturity:3 30-89 days........... 4 4Vi 90 days-1 year.., 5 1 year to 2 years. 5 5Vi 2 years and over., sy4 Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more.... 4 1 year to 2 years.. 5 Vi 5 Vi 6 months to 12 months 3 Vi 41/2 2 years and over. . 5y4 90 days to 6 months.. . 2Vi $100,000 and over: Less than 90 days........ 1 4 30-59 days.......... 5 Vi (4) (30-89 days) 60-89 days.......... 5V4 (4) 90-179 days........ 5V2 5 Vi 6 6y4 180 days to 1 year. 7 1 year or more. .. }6Va 7to 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 6V4 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 All All Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a m nk b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending May 19, 1971 Four weeks ending June 16, 1971 Gross demand—Total... 190,834 44,641 8,002 66,850 71,341 Gross demand—Total__ 188,955 43,244 7,946 66,281 71,484 Interbank..................... 25,903 12,351 1,418 9,303 2,831 Interbank...................... 25,627 12,090 1,436 9,253 2,848 U.S. Govt..................... 6,770 1,310 416 2,764 2,279 U.S. Govt...................... 4,513 760 226 1,685 1,843 Other............................ 158,161 30,980 6,168 54,783 66,231 158,815 30,394 6,284 55,343 66,793 Net demand 1................. 143,164 26,932 6,318 50,505 59,409 Net demand 1................... 141,690 26,164 6,230 49,873 59,424 Time................................. 194,812 23,310 6,931 71,262 93,309 Time.................................. 197,191 24,025 7,080 71,841 94,245 Demand balances due Demand balances due from dom. banks........ 10,820 1,110 174 2,742 6,793 from dom. banks.......... 10,845 1,053 158 2,746 6,888 Currency and coin.......... 5,183 429 102 1,638 3,014 Currency and coin............ 5,193 426 104 1,642 3,021 Balances with F.R. Balances with F.R. Banks........................... 25,163 5,365 1,328 10,258 8,212 24,966 5,287 1,323 10,162 8,193 Total reserves held.......... 30,346 5,794 1,430 11,896 11,226 Total reserves held........... 30,159 5,713 1,427 11,804 11,214 Required....................... 30,160 5,796 1,429 11,879 11,056 29,959 5,707 1,423 11,785 11,044 Excess........................... 186 -2 1 17 170 200 6 4 19 170 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 □ AUGUST 1971 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1971 1971 1970 July 28 July 21 July 14 July 7 June 30 July 31 June 30 July 31 Assets Gold certificate account................................................ 10,075 10,075 10,075 10,075 10,075 10,075 10,075 11,045 Special Drawing Rights certificate account................ 400 400 400 400 400 400 400 400 270 274 267 274 283 277 283 207 Discounts and advances: 781 1,561 1,842 471 446 778 446 1 ,252 Other......................................................................... 40 Acceptances: 54 57 57 61 62 55 62 37 Held under repurchase agreements........................... 25 Federal agency obligations—Held under repurchase agreements................................................................. 75 U.S. Govt, securities: Bought outright: Bills.......................................................................... 28,173 28,115 28,047 27,529 27,929 28,252 27,929 23,290 Certificates—Special.............................................. Other................................................. 34,354 34,354 34,354 34,354 34,354 34,354 34,354 32,420 3,235 3,235 3,235 3,235 3,235 3,235 3,235 2,887 i 65,762 i 65,704 i 65,636 i 265,118 1 65,518 i 65,841 i 65,518 58,597 Held under repurchase agreements........................... 901 Total U.S. Govt, securities............................................ 65,762 66,605 65,636 65,118 65,518 65,841 65,518 58,597 Total loans and securities.............................................. 66,597 68,323 67,535 65,650 66,026 66,674 66,026 59,926 Cash items in process of collection.............................. *10,193 *11,140 *12,200 *10,981 10,745 *9,231 10,745 8,376 Bank premises................................................................ 144 144 143 143 141 144 141 121 Other assets: Denominated in foreign currencies........................... 23 43 49 89 96 23 96 290 IMF gold deposited 3................................................ 148 148 148 148 148 144 148 210 All other.................................................................... 890 866 817 743 701 898 701 722 Total assets..................................................................... *88,740 *91,413 *91,634 *88,503 88,615 *87,866 88,615 81,297 Liabilities F.R. notes....................................................................... 51,838 51,983 52,276 52,239 51,452 51,610 51,452 47,810 Deposits: Member bank reserves............................................... *24,656 26,934 *24,943 *22,948 24,550 *25,311 24,550 23,072 U.S. Treasurer—General account............................ 1,413 1,110 2,516 2,065 1,274 1,115 1,274 1,200 Foreign........................................................................ 149 115 163 196 199 162 199 199 Other: IMF gold deposit 3................................................ 148 148 148 148 148 144 148 210 All other.................................................................. 574 550 546 565 540 610 540 572 Total deposits......................................................... *26,940 *28,857 *28,316 *25,922 26,711 *27,342 26,711 25,253 Deferred availability cash items.................................... 7,711 8,362 8,909 8,021 8,196 6,623 8,196 5,891 Other liabilities and accrued dividends........................ 542 568 552 548 546 557 546 664 Total liabilities............................................................... *87,031 *89 770 *90,053 *86,730 86 905 *86,132 86 905 79,618 Capital accounts Capital paid in............................................................... 731 730 729 727 729 731 729 686 Surplus............................................................................ 702 702 702 702 702 702 702 669 Other capital accounts................................................... 276 211 150 344 279 301 279 324 Total liabilities and capital accounts............................ *88,740 *91,413 *91,634 *88,503 88,615 *87,866 88,615 81,297 Contingent liability on acceptances purchased for foreign correspondents.............................................. 228 227 228 228 230 228 230 239 Marketable U.S. Govt, securities held in custody for foreign and international accounts4.......................... 18,258 18,126 17,694 17,970 17,980 18,191 17,980 11,803 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 55,087 55,148 55,089 54,772 54,495 55,095 54,495 51,119 Collateral held against notes outstanding: Gold certificate account............................................ 3,250 3,250 3,250 3,170 3,170 3,250 3,170 3,322 U.S. Govt, securities.................................................. 53,340 53,340 53,340 52,945 52,945 53,340 52,945 49,110 Total collateral............................................................... 56,590 56,590 56,590 56,115 56,115 56,590 56,115 52,432 1 See note 6 on p. A-5. 4 This caption valid beginning Sept. 16, 1970; figures prior to that 2 See note 7 on p. A-5. date include both marketable and nonmarketable securities for foreign 3 See note 1 (b) at top of p. A-75. account only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON JULY 31, 1971 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a i a t n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account...................... 10,075 524 2.354i 584| 838 919 518! 1.599 390 108 392 387 1,462 Special Drawing Rights certif. acct.. . 400 23 93 23 33 36 221 70 15 7 15 14 49 F.R. notes of other banks................... 1,009 107 182 71! 70 102 199! 42 271 36 40 29! 104 Other cash............................................ 277 9 22 91 27 35 34! 41 16! 7 26 17 34 Discounts and advances: Secured by U.S. Govt, securities.... 572 26 921 136 Hi 14! 72 Other................................................. 206 132 Acceptances: Bought outright............................... Held under repurchase agreements.. Federal agency obligations—Held under repurchase agreements.......... U.S. Govt, securities: Bought outright............................... 165,841 3,290 16,979 3,487 5,113 4,753 3,280 10,845 2,428 1,345 2,595 2,934 ,792 Held under repurchase agreements.. Total loans and securities................... 66,674 3,379 17,108 3,513 5,150 4,845 3,367 11,113 2,434 1,347 2,606 8,864 Cash items in process of collection... 12,255 652 2,033 638 817 873 1,375 2,018 603 466 816 792 1,172 Bank premises...................................... 144 2 3 19 13 16 17 14 17 1 9 8 Other assets: Denominated in foreign currencies.. 23 2 6 3 3 IMF gold deposited 3...................... 144 144 All other........................................... 898 225 139 16 38 " * i 37 Total assets. 91,899 22,175 4,8 7,022 6,889 5,576 15,042 3,531 2,005 3,946 4,235 11,833 Liabilities F.R. notes............................................ 52,619 2,903 12,645 3,047 4,269 4,673 2,569 9,186 2,021 903 1,980 2,072 6,351 Deposits: Member bank reserves.................... 25,311 1,064 6,527 1,134 1,751 1,312 1,660 3,724 891 621 1,106 1,419 4,102 U.S. Treasurer—General account.. 1,115 88 232 78 77 78 57 130 59 46 95 61 114 Foreign............................................. 162 7 4 55 7 13 10 22 5 3 6 18 Other: IMF gold deposit 3.................... 144 144 All other..................................... 613 525 14 29 Total deposits. 27,345 1,160 7,483 1,223 1,842 1,412 1,730 3,905 958 672 1,209 1,491 4,260 Deferred availability cash items......... 9,644 586 1,451 499 714 669 1,138 1,597 474 380 662 554 920 Other liabilities and accrued dividends 557 29 141 28 44 39 27 90 20 12 24 24 79 Total liabilities.................... 90,165 4,678 21,720 4,797 6,869 6,793 5,464 14,778 3,473 1,967 3,875 4,141 11,610 Capital accounts Capital paid in............ 731 191 109 92 Surplus......................... 702 185 105 88 Other capital accounts. 301 79 50 43 Total liabilities and capital accounts.. 91,899 4,757 22,175 4,8 7,022 5,576 15,042 3,531 2,005 3,946 4,235 11,833 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 228 11 5 60 12 20 12 34 13 29 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)................................................ 55,095 3,076 13,273 3,128 4,471 4,830 2,751 9,510 2,110 945 2,062 2,218 6,721 Collateral held against notes out­ standing: Gold certificate account.................. 3,250 250 500 300 510 530 1,000 155 5 U.S. Govt, securities....................... 53,340 2,920 13,000 3,000 4,000 4,375 2,900 8,750 2,030 960 2,125 2,280 7,000 Total collateral. 56,590 3,170 13,500 3,300 4,510 4,905 2,900 9,750 2,185 960 2,125 2,285 7,000 1 See note 6 on p. A-5. 5 After deducting $168 million participations of other F.R. Banks. 2 After deducting $17 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 $107 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 □ AUGUST 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 a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s Re t d io e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f m r t r s i p , ty ­ c G p h 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 t i s . ty tions 1970—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 -129 Sept. 2,657 2,367 308 2,474 2,367 308 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 2 119 -2 May 1,291 248 1,163 248 464 46 -136 June 1,955 1,165 37 1,893 1,165 37 82 38 -82 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 a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa r l o e s s s s G e it o c ie u v s r t, ­ p ( m u a n r g e e c r t n h e 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 e n e u s t t e r e s ­ ­ , change1 1970—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 6,561 5,242 1,698 186 85 1,968 Apr.... 62 16 5,085 6,404 -439 -186 -85 -707 May... 82 -327“ 4,076 4,076 1,043 48 1,099 June__ 11 1,165 1,165 754 -48 705 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d io o d f Total P st o e u rl n in d g s s A c u h s il t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese N gu l e a i n t l h d d e e s r r s ­ f S r w an is c s s 1968—Dec., 2,061 1,444 433 165 1 1969—Dec., 1,967 1,575 199 60 125 1970—Apr., 1,101 199 93 805 May, 510 199 94 205 11 June, 690 180 94 400 15 July. 290 180 95 14 Aug. 280 180 96 3 Sept. 680 580 96 3 Oct.. 408 306 97 4 Nov. 265 161 98 4 Dec. 257 154 98 4 1971—Jan.. 186 80 99 5 Feb. 107 100 5 Mar. 34 27 5 Apr. 34 27 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 July 28 July 21 July 14 July 7 June 30 July 31 June 30 July 31 Discounts and advances—Total................................... 781 1,561 1,842 471 446 778 446 1,292 Within 15 days............................................................ 777 1,559 1,841 469 444 774 444 1,244 16 days to 90 days...................................................... 4 2 1 2 2 4 2 48 91 days to 1 year........................................................ 54 82 57 61 62 55 62 37 Acceptances—T otal........................................................ 21 43 10 14 15 18 15 5 Within 15 days............................................................ 33 39 47 47 47 37 47 32 16 days to 90 days..................................................... 91 days to 1 year........................................................ 65,762 66,680 65,636 65,118 65,518 65,841 65,518 58,597 U.S. Government securities—Total.............................. 4,518 5,393 3,585 3,117 3,268 3,062 3,268 2,264 Within 15 days1.......................................................... 13,326 13,377 13,982 13,566 13,298 14,173 13,298 10,631 16 days to 90 days...................................................... 17,518 17,510 17,669 18,035 18,552 18,206 18,552 14,369 91 days to 1 year........................................................ 23,600 23,600 23,600 23,600 23,600 23,600 23,600 25,395 Over 1 year to 5 years................................................ 5,907 5,907 5,907 5,907 5,907 5,907 5,907 5,314 Over 5 years to 10 years............................................. 893 893 893 893 893 893 893 624 Over 10 years.............................................................. 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 t 2 h S 6 e A r ’s 1970—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................................ M0,688.4 4,825.9 *•2,453.5 r5,862.5 3,408.9 *•76.3 168.3 *76.8 r52.6 42.9 Feb............................... rll,508.9 5,477.4 r2,524.1 >•6,031.5 *•3,507.4 *•82.0 191.3 *•79.5 *•54.0 43.9 Mar............................... Ml,425.9 5,309.7 r2,505.3 *•6,116.2 3,610.9 *•79.5 183.5 r76.5 *•53.3 44.1 Apr............................... Ml,658.7 5,356.8 r2,597.1 *•6,301.9 3,704.8 r80.5 185.6 *78.7 r54.4 44.7 May............................. Ml,119.8 4,903.9 r2,573.9 r6,215.9 3,642.0 *•76.7 171.2 *•77.9 *-53.4 43.7 June............................. 11,815.2 5,202.8 2,764.5 6,612.4 3,847.9 80.1 179.3 82.4 55.8 45.4 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 □ AUGUST 1971 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cir­ cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,000 1939. 7,598 5,553 590 559 36 1,019 1,772 1,576 2,048 460 919 191 425 20 32 1941 . 11,160 8,120 751 695 44 1,355 2,731 2,545 3,044 724 1,433 261 556 24 46 1945. 28,515 20,683 1,274 1,039 73 2,313 6,782 9,201 7,834 2,327 4,220 454 801 7 24 1947. 28,868 20,020 1,404 1,048 65 2,110 6,275 9,119 8,850 2,548 5,070 428 782 5 17 1950. 27,741 19,305 1,554 1,113 64 2,049 5,998 8,529 8,438 2,422 5,043 368 588 4 12 1955. 31,158 22,021 1,927 1,312 75 2,151 6,617 9,940 9,136 2,736 5,641 307 438 3 12 1958. 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 1959, 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 . 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 1965. 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 1968 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 5 1970—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 May.......... 57,403 39,509 6,410 2,245 136 3,048 8,960 18,711 17,894 4,994 12,438 210 245 3 4 June.......... 58,393 40,263 6,472 2,277 136 3,099 9,137 19,144 18,130 5,075 12,596 209 243 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 June 30, against Treasury F.R. Banks 1971 gold and cash Banks and silver and Agents June May June certificates Agents 30 31 30 Gold................................................................................. 10,332 (10,075) 2 257 Gold certificates.............................................................. (10,075) 3 10,074 1 Federal Reserve notes.................................................... 54,494 149 3,042 5i,304 50,377 47,626 Treasury currency—Total.............................................. 7,421 48 283 7,089 7,026 6,725 Standard silver dollars............................................... 485 3 482 482 482 Fractional coin............................................................ 6,317 44 283 5,990 5,928 5,646 United States notes.................................................... 323 1 321 320 297 In process of retirement 4.......................................... 296 296 296 300 Total—June 30, 1971 .......................................................... 5 72,247 (10.075) 454 10.074 3,326 58,393 May 31, 1971......................................................... 5 71,522 (10.075) 494 10.074 3,551 57,403 June 30, 1970.......................................................... 5 68,783 (11,045) 439 11,044 2,949 54,351 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

AUGUST 1971 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week Mi Mz Mi Mz Mi (Mi plus time (Mi 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 than 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—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 May............................... 223.9 447.3 682.4 219.7 444.3 679.1 June.......................... 225.6 451.4 689.4 223.6 449.6 687.9 July^............................. 227.6 454.2 695.3 225.9 452.7 694.1 Week ending— June 30....................... 225.4 452.0 223.9 450. 3 July 7....................... 228.7 455.2 227.4 454.3 14....................... 227.4 453.9 226.4 452.9 21........................ 227.7 454.5 225.8 452.6 28........................ 227.0 454.0 224.1 451.1 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—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.................. 50.9 173.0 27.9 223.4 251.4 235.1 50.5 169.2 27.6 224.5 252.1 234.8 7.8 June................. 51.2 174.4 28.6 225.8 254.4 238.0 51. 1 172.5 28.4 226.1 254.4 238.3 5.4 July^................. 51.7 175.9 30.1 226.6 256.8 241.0 51.9 174.0 29.5 226.9 256.4 241.3 6.8 Week ending— June 30............ 51.4 174.0 28.8 226.6 255.4 51.0 173.0 28.5 226.4 254.9 6.5 July 7............ 51.8 176.9 29.6 226.5 256.0 52.4 175.0 28.6 226.9 255.5 7.2 14............ 51.7 175.7 30.1 226.5 256.6 52.1 174.3 29.3 226.5 255.8 6.7 21............ 51.8 176.0 30.1 226.8 256.9 51.9 173.9 29.6 226.8 256.4 6.9 28............ 51.7 175.3 30.5 227.0 257.5 51.4 172.7 30.3 227.0 257.3 6.7 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. than negotiable time certificates of deposit issued in denominations of Average of daily figures. Money stock consists of (1) demand deposits $100,000 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 □ AUGUST 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. items3 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—Dec.. 25.94 25.68 25.60 273.5 149.9 118.9 4.6 276.2 148.1 123.6 4.5 1968—Dec.. 27.96 27.22 27.61 298.2 165.8 128.2 4.2 301.2 163.8 133.3 4.1 1969—Dec.. 27.93 26.81 27.71 285.8 151.5 129.4 4.9 288.6 149.7 134.4 4.6 305.7 308.6 1970—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 4.7 341.7 342.4 May. 31.25 30.96 31.00 339.7 195.5 140.0 4.2 338.4 195.8 135.9 6.7 343.8 342.5 June. 31.26 30.80 31.05 341.2 197.5 139.9 3.9 340.2 197.6 138.2 4.4 345.7 344.7 July^, 31.27 30.47 31.09 343.7 199.2 140.8 3.7 344.1 198.9 139.5 5.7 347.9 348.2 1 Averages of daily figures. Data reflect percentages of reserve require­ 3 Total member bank deposits subject to reserve requirements, plus ments made effective Apr. 17, 1969. Required reserves are based on Euro-dollar borrowings, bank-related commercial paper, and certain average deposits with a 2-week lag. other nondeposit items. This series for deposits is referred to as “the 2 Averages of daily figures. Deposits subject to reserve requirements in­ adjusted bank credit proxy.” clude total time and savings deposits and net demand deposits as defined by Regulation D. Private demand deposits include all demand deposits ex­ Note.—Due to changes in Regulations M and D, required reserves cept those due to the U.S. Govt., less cash items in process of collection include increases of approximately $400 million since Oct. 16, 1969. and demand balances due from domestic commercial banks. Effective June Back data may be obtained from the Banking Section, Division of Research 9, 1966, balances accumulated for repayment of personal loans were elim­ and Statistics, Board of Governors of the Federal Reserve System, Wash­ inated from time deposits for reserve purposes. Jan. 1969 data are not ington, D.C. 20551. comparable with earlier data due to the withdrawal from the System on Jan. 2, 1969, of a large member bank. LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Date Securities Securities Total i,2 Loans1,2 Total1,2 Loans1,2 G U o . v S t . . Other 2 G U o .S vt . . Other2 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—June 30................................................................ 406.4 277.4 54.1 75.0 410.1 282.9 51.6 75.6 July 29................................................................ 412.8 281.5 55.8 75.5 412.6 283.4 53.5 75.7 Aug. 26................................................................ 418.3 284.1 57.5 76.7 415.4 283.2 55.1 77.1 Sept. 30................................................................ 423.7 287.3 57.6 78.8 423.3 288.0 55.8 79.5 Oct. 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.............................................................. 448.8 294.9 60.2 93.7 448.8 294.6 60.1 94.1 May 26p.............................................................. 453.0 297.9 60.2 94.9 450.9 297.2 58.9 94.8 June 30p.............................................................. 456.8 4297.4 63.1 4 96.3 460.9 4 303.4 60.5 4 97.1 July 8^............................................................... 460.0 300.2 62.0 97.8 460.0 302.3 59.5 98.1 1 Adjusted to exclude interbank loans. revision, see Aug. 1969 Bulletin, pp. 642-46. 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated 4 Beginning June 30,1971, Farmers Home Administration insured notes for payment of personal loans were deducted as a result of a change in totaling approximately $700 million are included in “Other securities” Federal Reserve regulations. rather than in “Loans.” Beginning June 30, 1966, CCC certificates of interest and Export- Import Bank portfolio fund participation certificates totaling an estimated Note.—For monthly data 1948-68, see Aug. 1968 Bulletin, pp. A-94 $1 billion are included in “Other securities” rather than “Loans.” —A-97. For a description of the seasonally adjusted series see the follow­ 3 Beginning June 30, 1969, data revised to include all bank-premises ing Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; and Sept. subsidiaries and other significant majority-owned domestic subsidiaries; 1967, pp. 1511-17. earlier data include commercial banks only. Also, loans and investments Data are for last Wed. of month except for June 30 and Dec. 31; data are now reported gross, without valuation reserves deducted, rather than are partly or wholly estimated except when June 30 and Dec. 31 are call net of valuation reserves as was done previously. For a description of the dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, net— Gold Treas­ Total Date c c s S e a a to D t r n e t c d i s R f k i 1 ­ r s c o e u i t n u n u a r g y c r n t ­ ­ y d­ Total L 2. o n 3 a e .1 n t 0 s Total U.S. s C b a T a a v o r n n i m e n d k a g l s s . s ury R F s B e e e a d c s n e u e r k r r v i a s t e l ies Other4 O r s 3 i e t t . c i h 1 e u 0 e s ­ r c l a i i a n a p t n i b e i e t d t i s a l ­ l, c d u T e r a p o r n o e t d a s n i l c t y s C c m o a a n a u p n i c e s n i d ­ 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—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 Mar. 31? 11,100 7.300 586.700 350.100 129,900 65.000 64,200 800 106,600 605.100 539.100 66,000 Apr. 28^ 11,100 7.300 588.800 350.600 128,300 63.400 64,000 900 109,900 607.300 543,900 63,400 May 26p 10.700 7.400 593.700 354.300 128.200 62.300 64,900 900 111,200 611.800 549.500 62.300 June 30p 10.700 7.400 605.500 361.100 130,500 63.900 65,500 1,100 114,100 623,800 559.100 64,700 July 28 p, 10.700 7.400 603.500 358.300 129.700 62.900 65,800 1,100 115,600 621,700 558.400 63.300 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 e a t n n u s c i k r d y ­ s e d ju m e D p s a a t o d e e n s ­ d ­ d i t 7 s Total o b r C u e a t n u n s c i r k d y ­ s e d ju e m D p a s a t o d e e n s ­ ­ d d it 7 s Total b m C a e n o r k c m s ia ­ l 2 b M sa a v n u i k t n u s g a s l 8 S P t a S e o v y m s i s t n a ­ 4 g l s e n F i e o g t n r ­ 9 , T h c i u r n o a e r g l s a y d s h s ­ ­ s b c a a o a A v n n m i t d n k l g s . s B F a A . n R t k . s 1947-—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1,336 1,452 870 1950-—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1,293 2,989 668 1967-—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968-—Dec. 31.... 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969--Dec. 315... 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1,312 1970--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 p. .. 214,100 49,300 164,800 208,200 48,800 159,400 322,100 247,000 75,100 2,500 500 5,000 900 Apr. 28*\ .. 207,100 48,900 158,200 207,200 48,500 158,700 323,800 247,900 75,900 2,300 500 8,600 1,400 May 26?. .. 212,100 49,500 162,600 209,700 49,400 160,300 327,700 251,000 76,800 2,300 500 8,500 900 June 30*’... 217,400 50,000 167,400 214,500 50,500 164,100 331,200 253,500 77,700 2,700 500 8,900 1,300 July 28^... 213,700 50,400 163,300 213,400 50,500 163,000 333,100 254,800 78,400 2,500 500 7,400 1,400 1 Includes Special Drawing Rights certificates beginning January 1970. 8 Includes relatively small amounts of demand deposits. Beginning with 2 Beginning with data for June 30, 1966, about $1.1 billion in “Deposits June 1961, also includes certain accounts previously classified as other lia­ accumulated for payment of personal loans” were excluded from “Time bilities. deposits” and deducted from “Loans” at all commercial banks. These 9 Reclassification of deposits of foreign central banks in May 1961 re­ changes resulted from a change in Federal Reserve regulations. 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-32. million to demand deposits). 3 See note 2 on p. A-23. 10 See note 9 on p. A-23. 4 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 5 Figures for this and later dates take into account the following changes Note.—For back figures and descriptions of the consolidated condition (beginning June 30, 1969) for commercial banks: (1) inclusion of con­ statement and the seasonally adjusted series on currency outside banks and solidated reports (including figures for all bank-premises subsidiaries and demand deposits adjusted, see “Banks and the Monetary System,” Section other significant majority-owned domestic subsidiaries) and (2) reporting 1 of Supplement to Banking and Monetary Statistics, 1962, and Bulletins of figures for total loans and for individual categories of securities on a for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly esti­ gross basis—that is, before deduction of valuation reserves. See also note 1. mated and are rounded to the nearest $100 million. 6 Series began in 1946; data are available only for last Wed. of month. For description of substantive changes in official call reports of 7 Other than interbank and U.S. Govt., less cash items in process of condition beginning June 1969, see Bulletin for August 1969, pp. collection. 642-46. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 20 COMMERCIAL BANKS □ AUGUST 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 assets3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks 1.2.9 U.S. capital De­ Treas­ Other ac­ mand Time Time1 ury 2.9 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,!?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 14,1065 105i ,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—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*.. 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*.. 466,540 312,340 60,080 94,120 88,680 577,710 479,150 26,430 2,020 8,150 194,180 248,370 24,070 43,740 13,717 May 26*.. 468,050 314,360 58,900 94,790 84,530 575,650 477,610 24,400 2,080 7,900 191,690 251,540 23,390 43,910 13,720 June 30*. . 478,700 321,170 60,450 97,080 96,620 599,040 502,510 31,260 2,250 8,370 206,600 254,030 22,770 44,410 13.728 July 28*.. 476,970 319,440 59,460 98,070 86,110 586,290 487.950 26.640 2,050 6,800 197,130 255,330 24,380 44,630 13.728 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. 31 336,738 242,119 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—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 5,730 150,712 186,766 20,440 34,213 5,754 Mar. 31... 366,723 250,777 45,193 70,753 83,092 469,355 386,692 29,399 1,749 3,726 159,983 191,835 21,107 34,658 5,751 Apr. 28... 368,539 252,040 43,704 72,795 78,152 465,677 382,149 25,278 1,776 6,957 155,728 192,410 22,983 34,799 5,747 May 26... 369,182 253,513 42,601 73,068 73,902 462,599 379,887 23,243 1,838 6,663 153,227 194,916 22,237 34,944 5,742 June 30*.. 377,992 259,400 43,856 74,736 85,022 483,048 401,422 29,936 2,006 6,954 165,771 196,755 21,626 35,366 5.735 July 28*.. 376,133 257,988 42,844 75,301 75,345 471,089 388,129 25,436 1,804 5,496 157,453 197,940 23,131 35,555 5.735 Reserve city member: New York City:7 1941—Dec. 31 ... 12,896 4,072 7,265 1,559 6,637 19,862 17,932 4,202 6 866 12,051 807 1,648 36 1945—Dec. 31... 26,143 7,334 17,574 1,235 6,439 32,887 30,121 4,640 17 6,940 17,287 1,236 195 2,120 37 1947—Dec. 31... 20,393 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31... 57.047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—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—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 June 30*.. 61,198 47,344 5,112 8,742 26,320 93,430 73,937 15,311 933 1,207 32,959 23,527 4,530 6,864 12 July 28... 59,988 46,382 4,837 8,769 22,281 88,057 67,319 12,062 835 939 29,379 24,104 5,954 7,008 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 assets 3 and Demand ings counts banks 1.2.9 U.S. capital Total 3 Treas­ Other ac­ De­ Time Time1 ury 2-9 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—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 1,326 123 414 6,415 6,770 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 6,908 2,180 1,616 9 June 30p.......... 16,442 11,738 1,735 2,969 3,104 20,464 15,621 1,489 206 316 6,635 6,975 2,364 1,629 9 July 28............ 16,128 11,724 1,565 2,839 3,199 20,233 15,413 1,448 150 277 6,389 7,149 2,489 1,634 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—July 29............ 120,894 89,581 11,665 19,648 24,422 151,834 120,708 8,374 409 2,349 50,046 59,530 9,777 11,885 156 Aug. 26............ 123,418 91,106 12,341 19,971 25,008 154,765 123,746 8,544 552 3,049 50,085 61,516 9,485 11,934 156 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 9,036 652 3,066 53,562 70,436 11,889 12,502 156 May 26............ 134,244 95,022 13,409 25,813 28,193 169,420 137,136 9,009 714 2,671 53,519 71,223 11,325 12,561 156 June 30^.......... 137,326 97,030 14,086 26,210 30,870 175,575 142,329 10,088 732 2,946 57,254 71,309 12,095 12,786 156 July 28............ 136,792 97,128 13,487 26,177 26,803 170,828 138,268 9,150 684 1,999 54,884 71,551 11,822 12,785 156 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 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 5,608 146,519 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............ 158,579 100,832 22,618 35,129 22,694 186,808 162,599 2,655 81 2,085 64,958 92,820 2,505 13,932 5,570 May 26............ 160,056 101,757 22,508 35,791 22,882 188,553 163,827 2,680 135 2,185 64,975 93,852 2,660 13,970 5,565 June 30^.......... 163,026 103,288 22,923 36,815 24,728 193,579 169,535 3,048 135 2,485 68,923 94,944 2,637 14,087 5,558 July 28 p.......... 163,225 102,754 22,955 37,516 23,062 191,971 167,129 2,776 135 2,281 66,801 95,136 2,866 14,128 5,558 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ AUGUST 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 10,654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,883 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 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 30 6. 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 30«. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 34,070 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 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

AUGUST 1971 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— F C R la S a s i n n s m i d s f u e ic F r m a a D n t b i c I o e C e r n s h b i y p Total Lo 1, a n 2 s 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 n i c a 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 i t n ­ a ta t l s l N ba b u o n e m f k r s ­ ury counts 4 G U o .S vt . . Other Noninsured nonmember: 1941—Dec. 31........... 1,457 455 761 241 763 2,283 1,872 3:19 1,;91 253 13 329 852 1945—Dec. 31.......... 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947 Dec. 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 Dec. 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 1,298 756 226 532 184 j 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 10,092100,934 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 7,919 1 See table (and notes) at the bottom of p. A-32. 9 Beginning June 30, 1971, Farmers Home Administration notes are 2 Beginning June 30, 1966, loans to farmers directly guaranteed by classified as “Other securities” rather than “Loans.” As a result of this CCC were reclassified as securities, and Export-Import Bank portfolio change, approximately $700 million was transferred to “Other securities” fund participations were reclassified from loans to securities. This reduced for the period ending June 30, 1971, for all commercial banks. Total loans and increased “Other securities” by about $1 billion. Total loans include Federal funds sold, and beginning with June 1967 securities Note.—Data are for all commercial banks in the United States (includ­ purchased under resale agreements, figures for which are included in ing Alaska and Hawaii, beginning with 1959). Commercial banks represent “Federal funds sold, etc.,” on p. A-24. all commercial banks, both member and nonmember; stock savings 3 Reciprocal balances excluded beginning with 1942. banks; and nondeposit trust companies. 4 Includes items not shown separately. See also note 1. For the period June 1941-June 1962 member banks include mutual 5 Beginning with Dec. 31, 1947, the series was revised; for description, savings banks as follows: three before Jan. 1960; two through Dec. 1960, see note 4, p. 587, May 1964 Bulletin. and one through June 1962. Those banks are not included in insured 6 Figure takes into account the following changes beginning June 30, commercial banks. 1969: (1) inclusion of consolidated reports (including figures for all bank- Beginning June 30, 1969, commercial banks and member banks exclude premises subsidiaries and other significant majority-owned domestic a small national bank in the Virgin Islands; also, member banks exclude, subsidiaries) and (2) reporting of figures for total loans and for individual and noninsured commercial banks include, through June 30, 1970, a small categories of securities on a gross basis—that is, before deduction of member bank engaged exclusively in trust business. valuation reserves—rather than net as previously reported. Comparability of figures for classes of banks is affected somewhat by v Regarding reclassification as a reserve city, see Aug. 1962 Bulletin, changes in F.R. membership, deposit insurance status, and the reserve p. 993. For various changes between reserve city and country status in classifications of cities and individual banks, and by mergers, etc. 1960-63, see note 6, p. 587, May 1964 Bulletin. Data for national banks for Dec. 31, 1965, have been adjusted to make 8 Beginning Jan. 4, 1968, a country bank with deposits of $321 million them comparable with State bank data. was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve Figures are partly estimated except on call dates. city bank in Chicago with total deposits of $190 million was reclassified as For revisions in series before June 30, 1947, see July 1947 Bulletin, a country bank. pp. 870-71. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 24 COMMERCIAL BANKS □ AUGUST 1971 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b c C a a l n l a l k s d s a a o n te d f l i T o n a a v o n n e t d a s s t l i ­ f s F e u o r e n l a d d d l , ­ s Total C m c o i e a m r l ­ ­ A cu g l r - i- o p s r u e r c c c F a u h r o r a r i r y t s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot i t h n o e - r, Other U s . e S c . u T ri r t e ie as s u 6 ry S l a o t n c a d a te l Other ments etc.2 3. 4 a i n n d ­ t a u l r- 5 b T ro o ­ v d i i d - - 5 Bills g se o c v u t ­ . r s it e i c es u 5 ­ d tr u ia s l ­ k a e n r d s ot T he o rs BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total:2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 8301,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,2763,729 1969—Dec. 31 io422,728 9,928286,750108443 10,3295,7394,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1970—June 30.. 424,18411,193285,843 108,361 11,2333,9723,565 2,522 14,39370,55064,1807,06851,569 62,975 12,604 Dec. 31..461,998 16,241297,897112,48611,1556,3323,536 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 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 ,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 823 1,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1969—Dec. 31 io419,746 9,693284,945 107,68510.314 5,6443,991 2,425 14,89069,66963,008 7,319 54,399 58,84011,869 1970—June 30.. 421,141 10,867284,096 107,56711,215 3,8863,541 2,457 14,24870,25263,921 7,009 51,248 62,619 12,311 Dec. 31..458,919 15,942296,064 111,54011,1416,2073,516 2,581 15,71372,30265,556 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 14,27144,807 3,2542,815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1969—Dec. 31 io337,613 7,356235,63996,0956,1875,4083,286 2,258 14,03553,20748,3886,77639,833 47,2277,558 1970—June 30.. 336,266 8,267232,54895,1906,6263,7492,920 2,228 13,45253,215 48,7296,43937,324 50,1088,019 Dec. 31.. 366,520 12,677241,84097,9546,538 5,963 3,028 2,345 14,68854,60049,8296,89545,399 55,662 10,942 New York City: 1941—Dec. 31.. 12,896 4,072 2,807 412 169 32 123 7,265 311 1,623 5,331 729 830 1945—Dec. 31.. 26,143 7,334 3,044 2,453 1,172 26 80 287 27217,574 3,910 3,325 10,339 606 629 1947—Dec. 31.. 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,642 558 9,772 638 604 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.. 57,0 553 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 City of Chicago: 1941—Dec. 31.. 2,760 954 732 48 52 22 9'5 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 1,5108 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 38729,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 35120,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 io121,628 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 37,5021,478 5881,151 689 5,981 19,53617,1562,82011,372 17,7331,955 Dec. 31.. 133,861 6,007 90,29338,627 1,428 909 1,322 798 7,015 19,848 17,3223,024 14,700 19,771 3,089 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 2 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 4 1,881 707 359 26.999 5,732 4,544 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 2,13929,12726,8581,759 19.999 23,6674,855 Dec. 31.. 154,568 5,420 94,421 25,6375,052 524 828 239 2,648 30,00527,585 1,90322,586 26,0796,062 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 61214,875 11,9564,600 1970—June 30.. 87,919 2,926 53,296 13,171 4,606 223 645 294 941 17,336 15,451 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 13,9755,538 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-32. 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

AUGUST 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 s B w F e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w B d n e n i c o a s t k e l t h ­ ­ i s s c 7 ju p m D s a o 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 g l a o o t n c a v d a t t e l . c C c h o e f a e e i e f t n e r c r f c d d i t s . k ­ i ’ ­ s, IPC I b n a t n e k r­ G P U S i a o n o a n . s g S v v d t s ­ t . a . l S l g a o o t n c a v d a t t e l . IPC 3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s 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*0.. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 1970—June 30.... 21,526 7,090 18,208158,241 23,759 2,579 8,076 17,062 10,254 165,683 898 20217,148187,713 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. 31 io. . 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 18,406160,99818,57834,100 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 "1*95 2,120 1947—Dec. 31.... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 3U0.. 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. 311».. 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 10,39112,221 Countrv: 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 73,2072,164 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 43,4801,038 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 (I) 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 □ AUGUST 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For pur chasing and dealers or carryingI 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 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 July 8............... 240,013 6,727 6,161 208 166 192 172,069 80,013 2,072 563 2,981 102 2,312 7,148 5,811 1 5 238,539 5,866 5,519 49 128 170 172,094 80,096 2,080 274 2,857 105 2,323 7,494 5,759 22............... 239,557 7,745 7,006 437 154 148 171,993 79,912 2,074 498 2,871 104 2,280 7,560 5,770 2 9 238,622 5,885 5,071 552 140 122 171,469 79,319 2,054 786 2,739 104 2,305 7,259 5,794 1971 June 2............... 263,611 9,071 8,093 596 269 113 179,657 81,909 2,165 777 3,767 121 2,347 7,254 6,672 9............... 262,322 8,923 8,067 542 141 173 178,297 81,516 2,176 634 3,644 111 2,350 6,775 6,597 1 6 266,381 9,126 8,311 424 235 156 181,637 82,802 2,174 800 3,932 113 2,356 7,415 6,799 23............... 263,911 8,394 7,648 473 131 142 180,739 82,599 2,180 438 3,732 137 2,364 7,115 6,866 3 0 266,847 7,754 7,030 513 29 182 182,755 82,521 2,200 890 4,180 132 2,388 7,600 7,184 July 7*............. 268,748 9,077 8,061 821 60 135 182,830 82,776 2,188 992 3,722 133 2,398 7,486 7,163 14 *............. 265.290 7,539 6,971 443 19 106 181,866 82,505 2,172 610 3,786 132 2,420 7,092 7,071 21*............. 263.290 7,046 6,547 346 14 139 181,012 82,182 2,167 546 3,554 148 2,422 7,026 6,902 28*............. 264,178 8,433 7,709 569 40 115 180,593 81,830 2,161 667 3,489 152 2,421 6,827 6,886 New York City 1970 July 8............... 54,685 948 917 42,106 25,843 15 419 1,832 17 700 2,286 1,555 1 5 54,484 1,017 992 42,080 25,902 15 192 1,772 17 693 2,506 1,517 22............... 55,268 2,317 2,291 10 41,959 25,836 15 373 1,832 17 690 2,350 1,515 2 9 55,076 1,616 1,596 41,848 25,642 15 503 1,733 15 690 2,274 1,517 1971 June 2............. 57,106 1,574 1,529 42,920 25,571 19 643 2,480 19 572 2,205 1,602 9............... 55,924 1,142 1,044 42,112 25,483 19 491 2,430 19 579 1,995 1,569 1 6 58,374 1,749 1,692 43,535 25,977 19 668 2,627 20 577 2,226 1,609 23.............. 56,698 1,578 1,506 42,643 25,787 20 327 2,498 30 578 2,098 1,621 3 0 57,597 827 742 43,886 25,902 19 803 2,950 20 585 2,253 1,673 July 7*............ 58,475 1,301 1,241 43,741 25,935 18 891 2,546 20 581 2,196 1,664 14*............ 56,932 642 588 43,219 25,916 18 477 2,677 19 589 2,034 1,577 21c............ 56,508 1,286 1,254 42,561 25,733 17 457 2,433 21 587 2,013 1,562 28*............ 56,376 1,331 1,253 42,502 25,598 18 571 2,350 21 587 1,987 1,556 Outside New York City 1970 July 8.............. 185,328 5,779 5,244 208 166 161 129,963 54,170 2,057 144 1,149 85 1,612 4,862 4,256 1 5 184,055 4,849 4,527 49 128 145 130,014 54,194 2,065 82 1,085 88 1,630 4,988 4,242 22.............. 184,289 5,428 4,715 437 144 132 130,034 54,076 2,059 125 1,039 87 1,590 5,210 4,255 2 9 183,546 4,269 3,475 552 140 102 129,621 53,677 2,039 283 1,006 89 1,615 4,985 4,277 1971 June 2............. 206,505 7,497 6,564 569 269 95 136,737 56,338 2,146 134 1,287 102 1,775 5,049 5,070 9............. 206,398 7,781 7,023 517 141 100 136,185 56,033 2,157 143 1,214 92 1,771 4,780 5,028 1 6 208,007 7,377 6,619 399 235 124 138,102 56,825 2,155 132 1,305 93 1,779 5,189 5,190 23............. 207,213 6,816 6,142 408 131 135 138,096 56,812 2,160 111 1,234 107 1,786 5,017 5,245 3 0 209,250 6,927 6,288 495 29 115 138,869 56,619 2,181 87 1,230 112 1,803 5,347 5,511 July 7*............ 210,273 7,776 6,820 815 60 81 139,089 56,841 2,170 101 1,176 113 1,817 5,290 5,499 14*............ 208,358 6,897 6,383 433 19 62 138,647 56,589 2,154 133 1,109 113 1,831 5,058 5,494 21*............ 206,782 5,760 5,293 331 14 122 138,451 56,449 2,150 89 1,121 127 1,835 5,013 5,340 28*............ 207,802 7,102 6,456 514 40 92 138,091 56,232 2,143 96 1,139 131 1,834 4,840 5,330 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 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 commercial Notes and bonds banks maturing—■ Wednesday Con­ Real sumer For­ All Certif­ estate 12 instal­ eign other Bills icates Do­ For­ ment govts. 2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1970 33,509 412 1,499 20,729 959 13,959 23,340 3,519 3,570 14,086 2,165 .........................July 8 33,557 413 1,563 20,740 972 13,861 22,567 2,829 3,620 14,015 2,103 ...................................15 33,612 397 1,446 20,739 951 13,779 22,016 2,312 3,663 13,953 2,088 ...................................22 33,620 425 1,445 20,919 986 13,714 23,378 3,734 3,694 13,913 2,037 ...................................29 1971 35,087 633 1,727 22,146 832 14,220 25,453 3,801 3.543 14,553 3,556 .........................June 2 35,187 580 1,742 22,180 834 13,971 25,566 3,986 3.543 14,496 3,541 .....................................9 35,364 553 1,949 22,289 819 14,272 25,586 4,056 3,660 14,330 3,540 ...................................16 35,508 611 1,863 22,376 812 14,138 25,052 3,574 3,631 14,371 3,476 ...................................23 35,628 649 1,751 22,577 734 14,321 26,623 4,189 3,691 15,347 3,396 ...................................30 35,637 598 1,931 22,596 797 14,413 27,111 4,852 3,574 15,326 3,359 .........................July 7* 35,927 603 1,841 22,650 802 14,255 26,614 4,571 3,560 15,172 3,311 ...................................14* 36,073 607 1,814 22,635 799 14,137 25,937 4,014 3,582 15,056 3,285 ...................................21 p 36,149 564 1,790 22,694 815 14,148 25,397 3,547 3,597 15,009 3,244 ...................................28 p New York City 1970 3,336 206 835 1,737 2,736 4,728 1,150 413 2,888 277 .........................July 8 3,367 228 890 1,732 590 2,659 4,509 969 450 2,818 272 ...................................15 3,386 194 798 1,731 590 2,632 4,255 772 436 2,781 266 ...................................22 3,390 202 814 1,818 618 2,617 4,881 1,369 476 2,770 266 ...................................29 1971 3,713 237 845 1,823 527 2,664 4,525 862 429 2,739 495 .........................June 2 3,720 169 839 1,828 522 2,449 4,754 1,113 430 2,721 490 ................................... 9 3,750 174 950 1,833 532 2,573 4,746 1,150 430 2,689 477 ...................................16 3,750 198 863 1,840 520 2,513 4,382 790 424 2,726 442 ...................................23 3,680 170 822 1,864 494 2,651 4,879 963 442 3,085 389 ...................................30 3,683 179 907 1,868 529 2,724 5,323 1,497 437 2,993 396 .........................July 7* 3,795 193 873 1.875 539 2,637 5,206 1,483 433 2,920 370 ...................................14* 3,795 204 853 1.875 544 2,467 4,814 1,124 471 2,867 352 ...................................21v 3,801 183 833 1.876 558 2,563 4,612 877 541 2,848 346 ...................................28^ Outside New York City 1970 30,173 206 664 18,992 370 11,223 18,612 2,369 3,157 11,198 1,888 .........................July 8 30,190 185 673 19.008 382 11,202 18,058 1,860 3,170 11,197 1,831 ...................................15 30,226 203 648 19.008 361 11,147 17,761 1,540 3,227 11,172 1,822 ...................................22 30,230 223 631 19,101 368 11,097 18,497 2,365 3,218 11,143 1,771 ...................................29 1971 31,374 396 882 20,323 305 11,556 20,928 2,939 3,114 11,814 3,061 .........................June 2 31,467 411 903 20,352 312 11,522 20,812 2,873 3,113 11,775 3,051 .....................................9 31,614 379 999 20,456 287 11,699 20,840 2,906 3,230 IJ.,641 3,063 ...................................16 31,758 413 1,000 20,536 292 11,625 20,670 2,784 3,207 11,645 3,034 ...................................23 31,948 479 929 20,713 240 11.670 21,744 3,226 3,249 12,262 3,007 ...................................30 31,954 419 1,024 20,728 268 11,689 21,788 3,355 3,137 12,333 2,963 .........................July Ip 32,132 410 968 20,775 263 11,618 21,408 3,088 3,127 12,252 2,941 ...................................14 p 32,278 403 961 20,760 255 11.670 21,123 2,890 3,111 12,189 2,933 ...................................21'* 32,348 381 957 20,818 257 11,585 20,785 2,670 3,056 12,161 2,898 ...................................28* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

iEPORTING BANKS □ AUGUST 1971 S AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continue (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 subdivisions collec­ Banks coin itie tion Tax Certif. war­ All of All rants 3 other partici­ other5 pation4 4,760 28,957 1,000 3,160 30,561 16,746 3,145 309 3 4,857 29,016 982 3,157 33,834; 18,575 3,267 313, 4,768 28,913 981 3,141 30,278 16,797 3,302 309, 4,770 28,946 1,018 3,156 26,853' 16,544 3,384 304 3 7,828 34,754 1,144 5,704 33,938 18,151 3,459 342 3 7,868 34,822 1,124 5,722 31,081 18,851 3,422 338, 7,865 35,262 1,128 5,777 35,328 18,291 3,483 346, 7,814 35,100 1,094 5,718 31,341 18,493 3,551 339, 7,548 35,142 1,316 5,709 38,774 18,184 3,500 351, 7,573 35,234 1,331 5,592 36,860 16,967 3,317 349, 7,490 34,976 1,368 5,437 32,469 18,906 3,652 342, 7,521 34,900 1,385 5,489 32,101 20,249 3,563 341, 7,636 35,308 1,362 5,449 31,177 18,369 3,666 339, 1,370 4,612 838 14,767 4,215 405 79, 1,348 4,630 818 16,341 5,019 402 82! 1,262 4,576 827 14,775 3,921 409 so; 1,240 4,582 821 12,540 4,414 410 78; 1,561 5,183 83 1,260 14,433 4,259 422 83, 1,424 5,149 84 1,259 14,767 5,237 432 83; 1,413 5,557 78 1,296 16,104 3,641 411 85; 1,396 5,360 73 1,266 14,845 4,576 424 83; 1,217 5,344 188 1,256 19,547 4,511 415 89; 1,295 5,390 207 1,218 16,232 5,091 431 87 1,229 5,275 240 1,121 13,816 5,338 442 83 1,204 5,253 232 1,158 14,614 5,200 436 83 1,208 5,396 213 1,114 14,951 5,160 438 83 3,390 24,345 917 2,322 15,794 12,531 2,740 229 3,509 24,386 900 2,339 17,493 13,556 2,865 231 3,506 24,337 909 2,314 15,503 12,876 2,893 229 3,530 24,364 930 2,335 14,313 12,130 2,974 226 6,267 29,571 1,061 4,444 19,505 13,892 3,037 259 6,444 29,673 1,040 4,463 16,314 13,614 2,990 255; 6,452 29,705 1,050 4,481 19,224 14,650 3,072 261; 6,418 29,740 1,021 4.452 16,496 13,917 3.127 256; 6,331 29,798 1,128 4.453 19,227 13,673 3,085 262; 6,278 29,844 1,124 4,374 20,628 11,876 2,886 262. 6,261 29,701 1,128 4,316 18,653 13,568 3,210 259; 6,317 29,647 1,153 4,331 17,487 15,049 3.127 257; 6,428 29,912 1,149 4,335 16,226 13,209 3,228 255, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks—■ Total 1970 132,736 91,368 6,177 5,429 18,674 799 779 2,158 7,352 102,797 46,432 39,311 9,478 602 6,665 ..............July 8 135,393 94,887 5,901 3,982 19,419 649 829 2,230 7,496 103,908 46,385 40,171 9,873 703 6,453 .......................15 130,037 91,602 5,391 4,250 18,285 572 743 2,267 6,927 105,241 46,396 41,116 10,105 791 6,505 .......................22 128,669 91,029 5,695 4,887 17,072 564 889 2,293 6,240 106,495 46,335 41,862 10,461 6,611 .......................29 1971 143,628 100,703 7,228 2,718 22,045 677 811 2,327 7,119 131,127 53,533 55,733 15,234 1,570 4,537 .............June 2 136,509 96,515 6,014 1,517 20,952 646 803 2,236 7,826 131,810 53,523 56,478 15,157 1,612 4,533 .........................9 145,452 100,430 6,801 4,717 21,984 628 802 2,262 7,828 130,795 53,474 55,568 14,926 1,633 4,680 .......................16 138,626 97,155 6,558 3,280 20,459 594 752 2,384 7,444 131,411 53,429 56,165 14,949 1,682 4,687 ......................23 152,998 102,160 7,623 5,328 24,975 794 745 2,397 8,976 131,890 53,658 56,532 14,687 1,756 4,748 .......................30 148,572 100,866 6,456 5,080 24,034 851 828 2,512 7,945 131,613 53,509 56,389 14,818 1,614 4,781 .............July 7* 141,186 100,269 6,008 3,394 20,399 715 729 2,415 7,257 132,077 53,318 56,814 14,943 1,599 4,862 .......................14* 140,676 98,061 5,804 4,905 20,530 651 713 2,402 7,610 132,341 53,308 56,900 15,018 1,613 4,971 .......................21* 139,726 97,291 6,150 3,899 20,831 621 759 2,368 7,807 132,954 53,145 57,210 15,260 1,588 5,200 .......................28* New York City 1970 39,453 22,312 556 1,288 7,721 503 631 1,527 4,915 14,516 4,378 5,177 459 353 4,033 ..............July 8 40,856 23,010 600 964 8,492 366 690 1,608 5,126 14,788 4,360 5,436 512 421 3,942 .......................15 39,082 22,543 368 995 7,836 303 599 1,632 4,806 15,345 4,356 5,854 549 458 4,005 .......................22 38,250 22,422 423 1,338 7,245 297 748 1,701 4,076 15,773 4,354 6,176 604 492 4,018 .......................29 1971 41,566 23,362 788 548 9,959 347 612 1,597 4,353 22,068 5,330 11,999 1,343 782 2,484 ..............June 2 39,974 21,925 465 201 9,701 332 614 1,523 5,213 22.558 5,319 12,400 1,427 798 2,492 .........................9 42,674 23,097 777 1,249 9,961 321 651 1,570 5,048 21,970 5,310 11,683 1,397 845 2,605 .......................16 40,473 22,314 501 496 9,690 308 601 1,665 4,898 22,350 5,286 11,957 1,523 845 2,613 .......................23 47,728 24,323 616 1,173 13,054 456 585 1,687 5,834 22.559 5,302 12,134 1,461 873 2,661 .......................30 43,635 22,676 496 1,328 11,420 492 681 1,738 4,804 22,431 5,278 12,108 1.403 828 2,688 ..............July 7* 39,024 22,422 464 706 8,786 386 563 1,724 3,973 22,634 5,236 12,305 1.404 779 2,751 .......................14* 40,431 21,977 414 1,282 9,706 346 559 1,670 4,477 22,723 5,233 12,283 1,439 795 2,808 .......................21* 40,851 22,049 406 914 9,997 322 603 1,652 4,908 23,010 5,211 12,311 1,568 779 2,953 .......................28* Outside New York City 1970 93,283 69,056 5,621 4,141 10,953 296 148 631 2,437 88,281 42,054 34,134 9,019 249 2,632 .July 94,537 71,877 5,301 3,018 10,927 283 139 622 2,370 89,120 42,025 34,735 9,361 282 2,511 .15 90,955 69,059 5,023 3,255 10,449 269 144 635 2,121 89,896 42,040 35,262 9,556 333 2,500 .22 90,419 68,607 5,272 3,549 9,827 267 141 592 2,164 90,722 41,981 35,686 9,857 388 2,593 .29 1971 102,062 77,341 6,440 2,170 12,086 330 199 730 2,766 109,059 48.203 43,734 13,891 788 2,053 .June 2 96,535 74,590 5,549 1,316 11,251 314 189 713 2,613 109,252 48.204 44,078 13,730 814 2,041 ...........9 102,778 77,333 6,024 3,468 12,023 307 151 692 2,780 108,825 48,164 43,885 13,529 788 2,075 ..........16 98,153 74,841 6,057 2,784 10,769 286 151 719 2,546 109,061 48,143 44,208 13,426 837 2,074 ..........23 105,270 77,837 7,007 4,155 11,921 338 160 710 3,142 109,331 48,356 44,398 13,226 883 2,087 ..........30 104,937 78,190 5,960 3,752 12,614 359 147 774 3,141 109,182 48,231 44,281 13,415 786 2,093 .July 7* 102,162 77,847 5,544 2,688 11,613 329 166 691 3,284 109,443 48,082 44,509 13,539 820 2,111 ..........14* 100,245 76,084 5,390 3,623 10,824 305 154 732 3,133 109,618 48,075 44,617 13,579 818 2,163 ..........21* 98,875 75,242 5,744 2,985 10,834 299 156 716 2,899 109,944 47,934 44,'899 13,692 809 2,247 ..........28* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ AUGUST 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 i1 ties of pur­ F.R. ties Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed 9 ad­ justed i o Total to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1970 July 8...................... 17,480 1,402 1,916 25,343 4.019 24,007 172,223 233,440 78,072 15,199 7,731 7,468 11,498 1 5 17,373 1,837 1,896 25,573 4,015 23,920 172,028 232,607 78,158 15,980 8,442 7,538 11,517 22...................... 17,842 1,044 1,902 24,963 4,014 23,906 172,335 232,154 77,224 16,911 9,141 7,770 11,235 2 9 15,098 652 1,811 23,903 4.019 23,945 171,858 233,126 79,857 17,881 9,752 8,129 10,469 1971 June 2...................... 21,347 16 909 16,047 4,032 25,702 180,002 254,885 84,927 27,991 17,296 10,695 1,877 9...................... 22,380 560 886 16,181 4,030 25,716 178,573 253,675 82,959 28,825 17,753 11,072 1,938 1 6 22,601 201 901 16,854 4,010 25,598 181,899 257,517 83,423 27,875 17,037 10,838 2.323 2 3 21,531 514 907 17,100 4,020 25,624 180,874 255,652 83,546 28,466 17,483 10,983 2.323 3 0 19,053 354 960 15,931 3,996 25,830 182.830 259,168 83,921 28,527 17,527 11,000 1,512 July 7 p.................... 21,656 378 1,293 16,104 3,989 26,051 183,248 260,089 82,598 28,554 17,506 11,048 2,083 14p.................... 20,823 1,697 1,063 15,443 3,988 26,005 181.831 257,716 84,924 29,329 18,044 11,285 1,730 21 p.................... 20,137 1,383 1,001 15,509 4,005 25,958 180,904 256,136 83,140 29,571 18,139 11,432 1,879 28 p.................... 20,073 643 1,002 14,980 4,012 25,981 180,753 255,905 83,819 30,273 18,421 11,852 1 ,497 New York City 1970 July 8...................... 4,133 433 174 13,866 1.198 6,093 41,931 53,562 15,677 3,462 1,426 2,036 7,906 1 5 4,421 650 177 14,023 1.199 6,087 41,877 53,264 15,059 3,795 1,678 2,117 8,053 2 2 4,625 63 204 13,401 1,198 6,083 41,791 52,783 15,476 4,158 2,000 2,158 7,752 2 4 4,151 13 205 12,421 1,202 6,055 41,666 53,278 17,127 4,518 2,274 2,244 7,118 1971 June 2...................... 5,381 49 6,526 1.195 6,542 42,728 55,340 16,626 9,731 6,714 3,017 1,274 9...................... 5,989 325 49 6,446 1.196 6,561 42,041 54,711 15,305 10,292 7,178 3,114 1,104 1 6 5,922 43 6,943 1.187 6,516 43,418 56,508 15,360 9,644 6,443 3,201 1,532 23...................... 5,463 43 7,138 1.188 6,501 42,517 54,994 15,442 9,991 6,669 3,322 1,414 30...................... 4,065 50 205 6,688 1,169 6,551 43,801 56,685 13,954 10,074 6,694 3,380 1,154 July Ip.................... 6,092 204 6,936 1.173 6.733 43,622 57,055 14,655 10,029 6,720 3,309 1,500 14 p.................... 5,854 790 204 6,673 1.174 6.733 43,080 56,151 15,716 10,351 7,043 3,308 1,264 21*.................... 5,240 340 206 6,523 1,188 6,713 42,389 55,050 14,829 10,499 7,040 3,459 1,186 28*.................... 5,237 65 200 6,349 1,194 6,694 42,397 54,940 14,989 10,811 7,091 3,720 1,016 Outside New York City 1970 July 8...................... 13,347 969 1,742 11,477 2,821 17,914 130,292 179,878 62,395 11,737 6,305 5,432 3,592 1 5 12,952 1,187 1,719 11,550 2,816 17,833 130,151 179,343 63,099 12,185 6,764 5,421 3,464 22...................... 13,217 981 1,698 11,562 2,816 17,823 130,544 179,371 61,748 12,753 7,141 5,612 3,483 2 9 10,947 639 1,606 11,482 2,817 17,890 130,192 179,848 62,730 13,363 7,478 5,885 3,351 1971 June 2...................... 15,966 16 860 9,521 2,837 19,160 137,274 199,545 68,301 18,260 10,582 7,678 603 9...................... 16,391 235 837 9,735 2,834 19,155 136,532 198.964 67,654 18,533 10,575 7,958 834 1 6 16,679 201 858 9,911 2,823 19,082 138,481 201,009 68,063 18,231 10,594 7,637 791 23...................... 16,068 514 864 9,962 2,832 19,123 138,357 200,658 68,104 18,475 10,814 7,661 909 3 0 14,988 304 755 9,243 2,827 19,279 139,029 202,483 69,967 18,453 10,833 7,620 358 July Ip.................... 15,564 378 1,089 9,168 2,816 19,318 139,626 203,034 67,943 18,525 10,786 7,739 583 14 p.................... 14,969 907 859 8,770 2,814 19,272 138,751 201,565 69,208 18,978 11,001 7,977 466 21 p.................... 14,897 1,043 795 8,986 2.817 19,245 138,515 201,086 68,311 19,072 11,099 7,973 693 28 p.................... 14,836 578 802 8,631 2.818 19,287 138,356 200.965 68,830 19,462 11,330 8,132 481 1 Includes securities purchased under agreements to resell. 7 Includes U.S. Govt, and foreign bank deposits, not shown separately. 2 Includes official institutions and so forth. 8 Includes securities sold under agreements to repurchase. 3 Includes short-term notes and bills. 9 Includes minority interest in consolidated subsidiaries. 4 Federal agencies only. 10 Exclusive of loans and Federal funds transactions with domestic com­ 5 As of June 30, 1971, Farmers Home Administration insured notes mercial banks. are classified as “Participation certificates in Federal agency loans.” 11 All demand deposits except U.S. Govt, and domestic commercial These notes were previously classified as “Real estate loans.” The amount banks, less cash items in process of collection. transferred to “Participation certificates . . .” for June 30, 1971, is $205 12 Certificates of deposit issued in denominations of $100,000 or more. million. 6 Includes corporate stock. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during- Industry 1971 1971 1971 1970 1971 July July July July June July June May II I IV 2nd 1st 28 21 14 7 30 half half Durable goods manufacturing: Primary metals................................. 2,201 2,243 2,259 2,280 2,295 -94 -26 3 -20 169 -169 -20 149 Machinery........................................ 5,202 5,272 5,386 5,352 5,220 -18 -84 9 38 -247 -595 -768 -209 Transportation equipment.............. 2,643 2,710 2,712 2,718 2,738 -95 111 -5 -99 -92 -69 169 -191 Other fabricated metal products... 2,065 2,094 2,104 2,099 2,108 -43 86 2 132 68 -269 -344 200 Other durable goods........................ 2,831 2,838 2,855 2,822 2,815 16 74 38 112 149 -249 -198 261 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,385 2,407 2,376 2,415 2,404 -19 80 -177 -163 -537 549 350 -700 Textiles, apparel, and leather.......... 2,646 2,613 2,612 2,624 2,599 47 121 30 115 166 -522 -395 281 Petroleum refining........................... 1,129 1,107 1,125 1,140 1,119 10 -62 -2 -64 -343 -105 -113 -407 Chemicals and rubber..................... 2,774 2,830 2,830 2,872 2,856 -82 87 -57 44 32 -22 63 76 Other nondurable goods................. 1,851 1,847 1,854 1,846 1,863 -12 6 7 -30 -105 -214 -113 -135 Mining, including crude petroleum and natural gas........................... 3,771 3,727 3,758 3,735 3,617 154 -204 -278 -108 -181 -257 -386 Trade: Commodity dealers................. 1,158 1,180 1,156 1,207 1,148 10 14 -65 -174 -57 375 481 -231 Other wholesale....................... 3,974 3,967 3,971 3,952 3,917 57 45 100 206 10 26 78 216 Retail........................................ 4,368 4,394 4,393 4,381 4,392 -24 -10 138 185 162 -201 -308 347 Transportation..................................... 5,871 5,879 5,913 5,916 5,980 -109 -96 -306 286 119 366 -20 Communication................................... 1,538 1,581 1,626 1,622 1,541 -3 98 19 184 49 46 19 233 Other public utilities........................... 2,346 2,344 2,327 2,316 2,206 140 240 -34 185 -327 -240 -386 -142 Construction........................................ 3,689 3,687 3,670 3,666 3,654 35 -116 117 71 131 146 197 202 Services................................................. 7,592 7,634 7,618 7,626 7,585 7 198 -52 387 -200 300 525 187 All other domestic loans..................... 5,069 5,080 5,093 5,098 5,043 26 259 -35 290 -180 -52 96 110 Bankers’ acceptances........................... 1,039 1,043 1,078 1,102 1,137 -98 -218 -99 -390 -164 945 1,186 -554 Foreign commercial and industrial loans............................................. 2,682 2,711 2,690 2,736 2,648 34 -48 168 106 140 198 255 246 Total classified loans........................... 68,824 69,188 69,406 69,525 68,885 -61 555 nos 531 -998 -184 884 -467 Total commercial and industrial loans. 81,830 82,182 82,505 82,776 82,521 -682 r961 r369 ••1,311 r—473 372 1,979 r847 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 1971 Industry July June May Apr. Mar. Feb. Jan. Dec. Nov. II I IV III 1st 28 30 26' 28 31 24 27 30 25 half Durable goods manufactur­ ing: Primary metals................... 1,535 1,587 1,667 1,622 1,630 1,564 1,544 1,527 1,535 -43 103 -150 157 60 Machinery.......................... 2,514 2,539 2,594 2,735 2,591 2,634 2,666 2,681 2,690 -52 -90 -243 140 -142 Transportation equipment. 1,552 1,559 1,440 1,515 1,613 1,633 1,647 1,633 1,621 -54 -20 -22 91 -74 Other fabricated metal products......................... 804 815 805 769 733 747 750 742 801 82 -9 -65 45 73 Other durable goods.......... 1,237 1,231 1,201 1,191 1,216 1,222 1,107 1,089 1,131 15 127 -52 9 142 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 948 972 919 982 974 971 949 985 932 -2 -11 -23 1 -13 Textiles, apparel, and leather............................. 598 597 609 592 617 659 674 657 703 -20 -40 -94 -11 -60 Petroleum refining............. 902 892 920 932 915 1,142 1,191 1,213 1,220 -23 -298 -35 -18 -321 Chemicals and rubber....... 1,828 1,824 1,726 1,822 1,850 1,834 1,800 1,849 1,738 -26 1 69 71 -25 Other nondurable goods.. 1,008 1,021 1,058 1,062 1,100 1,116 1,116 1,171 1,159 -79 -71 -12 112 -150 Mining, including crude pe­ troleum and natural gas. 3,019 2,992 3,058 3,089 3,123 3,270 3,354 3,326 3,329 -131 -203 -135 -121 -334 Trade: Commodity dealers.. 101 97 88 81 80 79 79 79 83 17 1 -3 -6 18 Other wholesale........ 850 842 809 813 782 754 783 756 739 60 26 59 5 86 Retail......................... 1,423 1,421 1,423 1,404 1,417 1,459 1,450 1,399 1,371 4 18 39 52 22 Transportation....................... 4,612 4,614 4,681 4,757 4,867 4,763 4,731 4,564 4,453 -253 303 147 141 50 Communication..................... 471 468 439 426 402 398 398 415 415 66 -13 -33 40 53 Other public utilities............. 1,141 1,095 1,038 991 973 1,056 1,029 1,018 1,022 122 -45 -47 32 77 Construction.......................... 1,229 1,192 1,178 1,164 1,107 1,063 1,048 1,044 1,005 85 63 -87 46 148 Services................................... 3,247 3,269 3,192 3,249 3,142 3,154 3,186 3,209 3,208 127 -67 77 115 60 All other domestic loans .... 1,309 1,247 1,259 1,223 1,268 1,319 1,346 1,285 1,716 -21 -17 60 -2 -38 Foreign commercial and in­ dustrial loans................. 1,908 1,892 1,882 1,840 1,792 1,716 1,723 1,716 1,283 100 76 112 -16 176 Total loans............................. 32,236 32,166 31,986 32,259 32,192 32,553 32,571 32,358 32,205 -26 -166 -264 883 -192 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 DEMAND DEPOSIT OWNERSHIP □ AUGUST 1971 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank and month deposits, Financial Nonfinancial Consumer Foreign All IPC business business other All commercial banks: 1970—June................................................................................ 16.6 85.8 49.9 1.4 9.6 163.4 Sept................................................................................. 17.0 88.0 51.4 1.4 10.0 167.9 Dec................................................................................. 17.3 92.7 53.6 1.3 10.3 175.1 1971—Mar................................................................................ 18.2 86.1 54.3 1.4 10.5 170.4 June................................................................................ 17.9 89.9 56.0 1.3 10.7 *175.8 Weekly reporting banks: 1970—June................................................................................ 12.8 53.0, 21.0 1.3 5.2 93.3 July................................................................................. 13.6 52.8 20.6 1.4 5.3 93.7 Aug................................................................................. 12.7 52.8 20.6 1.2 4.9 92.2 Sept................................................................................. 13.4 53.8 21.2 1.3 5.5 95.1 Oct.................................................................................. 13.2 53.7 20.9 1.2 5.8 94.8 Nov................................................................................. 13.6 53.9 21.1 1.2 5.4 95.2 Dec.................................................................................. 13.5 56.1 23.3 1.2 5.6 99.7 1971—Jan.................................................................................. 13.9 54.4 24.1 1.2 5.6 99.3 Feb................................................................................. 13.8 52.3 23.1 1.2 5.5 95.8 Mar................................................................................. 14.1 52.4 23.9 1.3 5.7 97.3 Apr.................................................................................. 14.1 53.4 25.3 1.3 5.7 99.8 May................................................................................ 13.7 52.9 24.1 1.2 5.5 97.4 June................................................................................ 14.0 54.2 24.4 1.2 6.0 *99.8 1 Including cash items in process of collection. description of the type of depositor in each category, see June 1971 Note:—Daily-average balances maintained during month as estimated Bulletin, p. 466. from reports supplied by a sample of commercial banks. For a detailed 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 730 688 536 433 605 571 492 437 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

AUGUST 1971 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 33 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 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 5r........ 2,867 1,912 955 1,892 417 1,475 l2r 2,774 1,861 913 1,899 420 1,479 19r . . . . 2,768 1,879 889 1,894 410 1,484 26'.............. 2,776 1,881 895 1,941 415 1,526 June 2r........ 2,861 1,827 1,034 1,931 414 1,517 9r .... 2,797 1,838 959 1,937 419 1,518 16r .... 2,752 1,807 945 1,942 422 1,520 23r , . 2,801 1,877 924 1 ,949 418 1,531 30 r........ 3,058 1,930 1,128 1,969 436 1,533 July 7.......... 2,815 1,756 1,059 1,954 448 1,506 14.......... 2,840 1,838 1,002 1,976 434 1,542 21.......... 2,840 1,865 975 1,975 444 1,531 28.......... 2,838 1,835 1,003 1,981 430 1,551 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS' ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by— Based on— Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Others p I o m rt ­ s p E o x rt ­ s All re B l a a n te k d Other i re B l a a n te k d Other2 Total Own Bills Own e F i o g r n ­ U i n n i t t o ed U f n ro it m ed other bills bought acct. corr. States States 196 4 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 1,719 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 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—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—Apr. 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 May 31,115 392 12,608 1,356 16,759 7,494 2,927 2,382 545 112 253 4,203 2.889 1,479 3,126 June 29,407 448 11,288 1,285 16,386 7,644 2,806 2,355 451 62 230 4,546 3,028 1,467 3,150 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 INTEREST RATES □ AUGUST 1971 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*4-6 1951—Jan. 8. 21/2 1959—May 18... 41/2 1969—Jan. 7. . 7 Oct. 17. 2% Sept. 1... 5 Mar. 17. . 71/2 1 1 9 9 3 3 1 0 2 31 * /2 4- - 5 6 Dec. 19. 3 1960—Aug. 23... 41/2 June 9 , 8% 1 1 1 9 9 9 3 3 3 1 4 9 — 4 3 2 7 (Nov.) 3 1 1* 1 j/ 4 2 4 - - 4 4 1 1 1 9 9 9 5 5 5 3 4 5 — — — A O M A p u c a t g r r . . . . 2 1 1 7 4 7 4 , 3 3 3 3 1 1 1 / / 4 4 2 1 1 9 96 6 6 5 — — J D A M u e u n a c g r e . . . 1 2 1 6 0 9 6 . . . . . . . . . . . . 5 5 5 6 1 3 / 4 2 1970— D N N S M e e o o a p c v v r t . . . . . 2 2 2 2 1 2 3 5 2 1 . , . . . . . , 7 7 6 7 V M H a 1967—Jan. 26-27 51/2-534 1971—Jan. 6 6 V4 Effective date 1956—Apr. 13 33A Mar. 27... 5V4 Jan. 15. , 61/4 Aug. 21 4 Nov. 20... 6 Jan. 18. . 6 Feb. 16. . 5V4 1947—Dec. i. .. iy4 1957—Aug. 6 41/2 1968—Apr. 19... 61/2 Mar. 11 514-51/2 Sept. 25... 6 -614 Mar. 19 5% 1948—Aug. i... 2 1958—Jan. 22 4 Nov. 13... 61/4 Apr. 23 514-51/2 Apr. 21 31/2 Dec. 2... 61/2 May 11. . 5i/i 1950—Sept. 22 2*4 Sept. 11 4 Dec. 18... 634 July 6.. 5*4-6 July 7 , 6 1 Date of change not available. RATES ON 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 Center May Feb. May Feb. May Feb. May Feb. May Feb. May Feb. 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Short-term 35 centers..................................... 6.00 6.58 7.47 8.05 6.94 7.49 6.37 6.91 6.04 6.64 5.76 6.35 New York City........................ 5.66 6.26 6.85 7.76 6.66 7.20 6.13 6.57 5.82 6.35 5.56 6.18 7 other Northeast.................... 6.25 6.80 7.69 8.27 7.18 7.75 6.58 7.11 6.22 6.97 5.88 6.40 8 North Central....................... 5.95 6.65 7.08 7.76 6.69 7.28 6.25 7.82 5.97 6.57 5.78 6.54 7 Southeast............................... 6.37 6.88 7.67 8.23 7.20 7.72 6.54 7.00 6.12 6.69 6.05 6.55 8 Southwest.............................. 6.17 6.59 7.35 7.83 6.76 7.22 6.33 6.82 6.19 6.63 5.87 6.25 4 West Coast............................ 6.12 6.63 7.84 8.38 7.14 7.77 6.43 7.16 6.10 6.77 5.91 6.32 Revolving credit 35 centers..................................... 5.74 6.34 6.62 7.51 6.53 7.06 5.90 6.70 5.83 6.43 5.71 6.30 New York City........................ 5.74 6.25 6.33 6.65 6.77 6.88 5.83 6.54 5.66 6.27 5.73 6.24 7 other Northeast.................... 5.86 6.57 7.62 8.53 6.54 7.95 5.84 6.56 5.74 6.28 5.87 6.60 8 North Central....................... 5.82 6.48 6.65 6.53 6.30 6.67 5.73 6.49 5.79 6.57 5.82 6.46 7 Southeast............................... 6.29 6.62 6.24 8.00 6.76 7.91 6.66 7.22 6.18 6.28 6.08 6.12 8 Southwest.............................. 6.05 6.74 6.81 7.26 6.89 7.03 6.46 7.63 6.61 6.65 5.69 6.47 4 West Coast............................ 5.66 6.31 7.11 8.24 6.42 7.15 5.85 6.66 5.80 6.41 5.61 6.25 Long-term 35 centers..................................... 6.38 6.81 7.63 8.42 7.25 7.58 6.91 7.32 6.22 6.91 6.24 6.64 New York City........................ 6.35 6.81 5.65 7.08 6.35 6.75 6.53 6.80 6.53 6.56 6.29 6.83 7 other Northeast.................... 6.64 7.09 8.11 10.36 7.44 7.97 7.38 7.62 6.19 6.80 6.27 6.72 8 North Central....................... 6.49 6.92 7.44 7.56 7.06 7.39 6.88 7.28 6.34 7.52 6.41 6.77 7 Southeast............................... 7.67 7.22 7.07 8.37 8.13 7.62 8.41 7.59 7.00 6.50 7.25 7.00 8 Southwest.............................. 6.29 6.99 8.02 6.90 6.95 7.84 6.69 8.06 6.18 6.82 6.19 6.71 4 West Coast........................... 6.04 6.46 7.80 7.63 7.18 7.21 6.41 7.41 6.05 6.81 5.99 6.32 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 the June 1971 Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance U.S. Government secutities (taxable)4 CO. Prime p p l a a p c e ed r b a a c n c k e e p r t s ­ ’ F f e u d n e d r s al 3-month bills 5 6-month bills 5 9- to 12-month issues directly, ances, rate3 3- to 5m 3- o t n o t h 6 s - 2 90 days1 n R ew at e is o su n e M y a ie r l k d et n R ew at e is s o u 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 is y su ea e r s 7 3, 3.40 3.36 3.18 3.157 3.16 3.253 3.25 3.30 3.28 3.72 3. 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 4. 4.27 4.22 4.07 3.954 3.95 4.055 4.05 4.06 4.09 4.22 5. 5.42 5.36 5.11 4.881 4.85 5.082 5.06 5.07 5.17 5.16 5. 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 5. 5.69 5.75 5.66 5.339 5.33 5.470 5.48 5.45 5.62 5.59 7. 7.16 7.61 8.22 6.677 6.64 6.853 6.84 6.77 7.06 6.85 7. 7.23 7.31 7.17 6.458 6.42 6.562 6.55 6.53 6.90 7.37 8. 7.64 7.61 7.21 6.468 6.45 6.555 6.51 6.63 7.00 7.58 7. 7.48 7.20 6.61 6.412 6.41 6.526 6.56 6.55 6.92 7.56 7. 7.12 7.03 6.29 6.244 6.12 6.450 6.47 6.40 6.68 7.24 6. 6.76 6.54 6.20 5.927 5.90 6.251 6.21 6.23 6.34 7.06 6, 6.16 5.79 5.60 5.288 5.28 5.422 5.42 5.39 5.52 6.37 5, 5.48 5.32 4.90 4.860 4.87 4.848 4.89 4.87 4.94 5.86 5, 5.07 4.77 4.14 4.494 4.44 4.510 4.47 4.39 4.29 5.72 4. 4.37 4.09 3.72 3.773 3.69 3.806 3.78 3.84 3.80 5.31 4, 4.05 3.80 3.71 3.323 3.38 3.431 3.50 3.61 3.66 4.74 4, 4.27 4.36 4.15 3.780 3.85 3.927 4.03 4.09 4.21 5.42 5, 4.69 4.91 4.63 4.139 4.13 4.367 4.34 4.64 4.93 6.02 5. 5.24 5.33 4.91 4.699 4.74 4.890 4.95 5.32 5.57 6.36 5, 5.54 5.60 5.31 5.554 5.39 5.833 5.77 5.87 6.00 6.92 4, 4.08 4.00 4.02 3.521 3.61 3.695 3.72 3.70 3.89 4.85 4, 4.13 4.13 3.98 3.703 3.78 3.754 3.85 3.79 4.02 5.08 4. 4.28 4.38 4.20 4.039 3.96 4.140 4.09 4.10 4.16 5.37 4. 4.34 4.45 4.27 3.770 3.81 3.960 4.02 4.14 4.19 5.59 4. 4.39 4.60 4.14 3.865 3.93 4.087 4.22 4.44 4.53 5.77 5. 4.50 4.83 4.41 3.865 3.84 4.182 4.20 4.46 4.69 5.92 5, 4.51 4.88 4.59 3.861 3.96 4.178 4.23 4.58 4.75 5.98 5. 4.79 4.95 4.55 4.352 4.36 4.530 4.49 4.79 5.20 6.20 5, 4.98 5.00 4.68 4.478 4.38 4.578 4.46 4.73 5.08 5.97 5. 5.13 5.00 4.82 4.344 4.28 4.508 4.52 4.78 4.99 5.92 5. 5.13 5.18 4.77 4.510 4.58 4.720 4.79 5.13 5.37 6.22 5. 5.19 5.43 4.89 4.989 4.94 5.2Q0 5.16 5.43 5.76 6.54 5. 5.39 5.50 4.96 4.953 4.86 5.133 5.06 5.56 5.74 6.46 5. 5.45 5.60 5.07 5.080 5.17 5.277 5.37 5.77 6.06 6.70 5. 5.48 5.63 5.18 5.467 5.40 5.614 5.53 5.65 5.96 6.70 5. 5.56 5.50 5.13 5.376 5.38 5.483 5.52 5.61 5.70 6.64 5. 5.56 5.63 5.46 5.546 5.45 5.724 5.73 5.77 5.85 6.82 5, 5.58 5.63 5.38 5.554 5.39 5.833 5.77 5.87 6.00 6.92 es of dealers. 4 Except for new bill issues, yields are averages computed from daily shed by finance companies, for varying closing bid prices. 5 Bills quoted on bank discount rate basis. nding 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 36 INTEREST RATES □ AUGUST 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 ( S l t o a n te g s ­ 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-—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 Oct...................................... 6.59 6.41 6.07 6.74 8.63 8.03 9.33 8.35 9.06 8.74 7.33 3.74 Nov.................................... 6.24 6.04 5.79 6.33 8.65 8.05 9.38 8.37 9.06 8.77 7.30 3.72 Dec..................................... 5.97 5.49 5.21 5.80 8.35 7.64 9.12 7.95 8.96 8.45 6.88 3.46 5 .81 r 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 5.52 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 June.................................... 5.94 5.98 5.65 6.36 8.14 7.64 8.75 7.80 8.43 8.39 6.99 3.10 July..................................... 5.91 6.12 5.75 6.58 8.14 7.64 8.76 7.85 8.46 8.34 7.03 3.13 Week ending— 1971—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 June 5............................. 5.79 5.83 5.50 6.20 8.15 7.69 8.71 7.80 8.40 8.41 6.98 3.07 12............................ 5.89 5.90 5.60 6.25 8.13 7.66 8.73 7.79 8.37 8.42 7.03 3.09 19............................ 6.06 5.99 5.70 6.35 8.13 7.63 8.77 7.79 8.42 8.38 6.96 3.08 26............................ 5.98 6.19 5.80 6.65 8.14 7.62 8.78 7.79 8.49 8.37 6.99 3.14 July 3............................. 5.97 6.35 5.90 7.00 8.14 7.63 8.78 7.82 8.47 8.35 7.01 3.10 10............................. 5.92 6.09 5.70 6.60 8.14 7.65 8.75 7.83 8.43 8.35 7.06 3.09 17............................. 5.82 6.09 5.70 6.60 8.14 7.64 8.77 7.84 8.43 8.34 7.07 3.12 24............................. 5.91 5.98 5.65 6.30 8.14 7.63 8.75 7.85 8.47 8.32 6.96 3.12 31............................. 5.96 6.08 5.80 6.40 8.16 7.66 8.78 7.86 8.47 8.34 7.04 3.18 Number of issues2....................... 7 20 5 5 119 20 30 40 29 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Govt.: Averages of daily figures for bonds maturing or callable in 10 years arately. Because of a limited number of suitable issues, the number or more. (2) State and local govt.: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are 23, 1967, Aaa-rated railroad bonds are no longer a component of the from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios 2 Number of issues varies over time; figures shown reflect most recent are based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios Note.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Bonds: Monthly and weekly yields are computed as follows: (1) U.S. adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com­ companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5% hours per day, or 27% hours per week. homebuilders; and permanent loans that are coupled with construction In recent years shorter days and/or weeks have cut total weekly trading loans to owner-builders. Series beginning 1965, not strictly comparable to the following number of hours: 1967—Aug. 8-20, 20; 1968—Jan. 22- with earlier data. See also the table on Home-Mortgage Yields, p. A-55. Mar. 1, 20; June 30-Dec. 31, 22; 1969—Jan. 3-July 3, 20; July 7-Dec. 31- 22.5; 1970—Jan. 2-May 1, 25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer­ (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex­ change ( G t l e U o o r . n m v S g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e al x 1 NYSE AMEX 196 2 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1,225 196 3 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 196 4 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1.570 196 5 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12.05 6,174 2,120 196 6 78.63 102.6 86.1 85.26 91.09 46.34 68.21 44.16 43.79 48.23 44.77 44.43 14.67 7,538 2,752 196 7 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 196 8 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 196 9 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 197 0 60.52 72.3 61.6 83.22 91.29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 1970—July.... 60.59 70.6 59.0 75.72 83.00 26.59 50.91 41.15 43.04 26.46 34.90 54.00 20.11 10,358 2,202 Aug---- 59.20 73.8 60.0 77.92 85.40 26.74 52.62 42.28 44.20 27.66 35.74 56.05 20.39 10,420 2,474 Sept... . 60.10 72.3 60.8 82.58 90.66 29.14 54.44 45.10 47.43 30.43 36.74 60.13 21.72 14,423 4,438 Oct....... 60.44 71.9 61.3 84.37 92.85 31.73 53.37 46.06 48.87 32.38 36.01 59.04 22.39 11,887 3,135 Nov.... 63.27 75.1 61.9 84.28 92.58 30.80 54.86 45.84 48.54 31.23 36.71 57.40 21.73 11,519 2,677 Dec.. .. 65.63 79.8 64.7 90.05 98.72 32.95 59.96 49.00 51.68 33.70 39.93 61.95 22.19 15,241 4,330 1971—Ja.........n 66.10 79.9 66.5 93.49 102.22 36.64 63.43 51.29 53.72 37.76 42.52 66.41 23.56 17,429 4,493 Feb.... 66.78 81.5 66.8 97.11 106.62 38.78 62.49 53.42 56.45 40.37 42.30 68.19 25.02 19,540 6,054 Mar.... 67.94 82.8 65.8 99.60 109.59 39.70 62.42 54.89 58.43 41.71 41.60 70.66 25.88 16,955 5.570 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 June... 65.84 74.8 63.5 99.70 109.95 41.97 59.96 55.06 59.25 44.90 38.71 70.01 25.61 13,802 3.488 July.... 66.16 74.0 63.2 99.00 109.09 42.05 60.08 54.83 58.70 44.02 39.72 70.42 25.46 12,634 3,080 Week ending— 1971—July 3 65.63 73.2 63.4 99.16 109.37 41.86 59.50 54.80 58.81 43.66 39.44 69.19 25.40 12,545 2,919 10 66.08 73.3 63.1 100.21 110.47 42.30 60.53 55.49 59.46 44.88 40.04 70.82 25.72 12,877 3,411 17, 66.91 73.9 63.4 99.59 109.71 42.39 60.59 55.20 59.03 44.83 40.13 71.15 25.68 13,383 3,187 24 66.09 74.4 63.2 99.12 109.19 42.24 60.25 54.94 58.80 44.13 39.77 70.93 25.51 12,169 2,830 31 65.72 74.2 63.0 97.02 106.88 41.30 59.06 53.67 57.45 42.44 38.99 69.13 24.98 12,599 3,175 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period C c t ( r r e p a o a n e t c n e t r t ) ­ c F c h e ( e a p e n r e s t g ) r e & i s M (y a e tu ar r s i ) ty L p r c ( a o e p r t i n a e c i n o t r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h e ( e a p e n r s e t g ) r e & i s M (y a e t a u r r s i ) ty L r c p ( a o e p r t i n a e i c t o n r e ) / (t d h c o o p P h l r u u l a i a s c r s . r e ­ e s o ) f (t d a h L m o o l o u l o s a a u . r n n s o ) t f 1964....................... 5.78 .57 24.8 74.1 23.7 17.3 5.92 .55 20.0 71.3 18.9 13.4 1965....................... 5.74 .49 25.0 73.9 25.1 18.3 5.87 .55 21.8 72.7 21.6 15.6 1966........................ 6.14 .71 24.7 73.0 26.6 19.2 6.30 .72 21.7 72.0 22.2 15.9 1967........................ 6.33 .81 25.2 73.6 28.0 20.4 6.40 .76 22.5 72.7 24.1 17.4 1968........................ 6.83 .89 25.5 73.9 30.7 22.4 6.90 .83 22.7 73.0 25.6 18.5 1969........................ 7.66 .91 25.5 72.8 34.1 24.5 7.68 .88 22.7 71.5 28.3 19.9 1970—May............ 8.28 .98 25.3 71.7 35.8 25.3 8.18 .94 22.8 70.3 30.5 21.1 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............. 7.52 .83 25.9 73.7 35.9 26.0 7.47 .77 24.1 73.5 31.7 23.0 Apr.............. 7.37 .73 26.3 73.6 36.0 26.2 7.34 .75 24.2 73.6 31.8 23.1 7.36 .71 26.1 74.0 36.7 26.7 7.33 .71 24.0 73.2 32.3 23.3 June............ 7.38 .73 26.3 73.6 37.4 27.2 7.39 .73 24.3 73.2 32.9 28.8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ AUGUST 1971 STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In millions of dollars) (Per cent of total adjusted debt, except as noted) Credit extended to Cus­ Cus­ Net Adjusted debt/collateral value Total margin customers by— tomers’tomers’ credit (per cent) ad­ net net ex­ justed End of period Brokers Banks Total a d b n e a c b l e i ­ s t c a b f r n r e a c e d l e e ­ i s t b te r n o b d k y e e d rs E pe n r d i o o d f Un 2 d 0 er 20-29 30-39 40-49 50-59 6 m 0 o o re r l ( d i m o o e n b i f l s t ­ dol­ Unrestricted Restricted i lars) 1970-June............... 2.290 6,150 5,281 2,009 3,272 July.................3,800 2.290 6,090 (4) 52,180 (4) 1970—June. 1.3 1.0 23.3 24.9 9.4 40.1 8,490 Aug..................3,810 2.300 6,110 (4) 2,083 (4) July.. 1.1 1.0 32.7 16.7 9.0 39.5 8,610 Sept..................3,920 2.330 6,250 (4) 2,236 (4) Aug.. .7 1.1 37.8 14.3 9.2 36.9 8,580 Oct...................4,010 2,270 6,280 (4) 2,163 (4) Sept.. .6 1.1 45.5 12.0 8.9 31.9 8,900 Nov..................4,010 2,320 6,332 (4) 2,197 (4) Oct... .7 1.0 38.4 18.0 9.2 32.6 8,780 Dec..................4,030 2.330 6,360 (4) 2,286 (4) Nov.. 1.0 0.9 39.0 16.4 9.7 33.0 8,570 Dec.. .0 .3 47.0 13.7 9.5 29.4 8,140 1971—Jan.. 4,000 2.300 6,300 (4) 2,452 (4) Feb.. 4,090 2.330 6,420 (4) 2,743 (4) 1971—Jan. . .0 .4 55.1 12.5 8.4 23.6 8,180 Mar.. 4,300 2,360 6,660 (4) 2,798 (4) Feb.. .0 .4 56.2 13.2 7.7 22.5 8,410 Apr.., 4,530 2.340 6,870 (4) 2,660 (4) Mar.. .0 .5 58.4 12.7 6.7 21.6 8,820 May. 4,620 2.340 6,960 (4) 2,550 (4) Apr.. .2 .4 60.6 12.1 6.0 20.7 9,200 June. 4,720 2,390 7,110 (4) 2,440 (4) May. .0 0.3 54.0 17.9 6.8 20.9 8,990 June. .3 .2 47.4 23.1 7.6 21.3 9,030 1 End-of-month data. Total amount of credit extended by member firms of the N.Y. Stock Exchange in margin accounts, excluding credit extended i Debt representing more than 30 per cent but less than 35 per cent of on convertible bonds and other debt instruments and in special subscrip­ collateral value is unrestricted as of May 6, 1970, but is not separable from tion accounts. the remainder of this category. 2 Figures are for last Wed. of month for large commercial banks re­ porting weekly and represent loans made to others than brokers or dealers Note.—Adjusted debt is computed in accordance with requirements set for the purpose of purchasing or carrying securities. Excludes loans col­ forth in Regulation T and often differs from the same customer’s net debit lateralized by obligations of the U.S. Govt. balance mainly because of the inclusion of special miscellaneous accounts 3 Change in series. From Jan. 1966 to June 1970 the total of broker- in adjusted debt. Collateral in the margin accounts covered by these data extended margin credit was estimated by expanding the total of such now consists exclusively of stocks listed on a national securities exchange. credit extended by a small sample of N.Y. Stock Exchange member firms Unrestricted accounts are those in which adjusted debt does not exceed the according to the proportion of total Customers’ net debit balances ex­ loan value of collateral; accounts in all classes with higher ratios are tended by these firms. Beginning with June 30, 1970, total broker-extended restricted. margin credit is derived from reports by the majority of N.Y. Stock Ex­ change member firms that carry margin accounts for customers; these firms, as a group, account for nearly all such credit extended by members of that exchange. 4 Series discontinued. SPECIAL MISCELLANEOUS ACCOUNT BALANCES 5 Change in series. AT BROKERS, BY EQUITY STATUS OF ACCOUNTS Note.—Customers’ net debit and free credit balances are end-of-month ledger balances as reported to the New York Stock Exchange by all member firms that carry margin accounts. They exclude balances carried (Per cent of total, except as noted) 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 Equity class of accounts t d o e t b a i l t . d F e r b e t e o c w re e d d i t b b y a l t a h n o c s e e s a c r u e s t i o n m a e c r c s o u w n h ts o s o e f c c u o s m to b m in e e r d s w ac it c h o u n n o t s u n n f e u t l fi t l o le d a Net in debit status Total commitments to the broker and are subject to withdrawal on demand. Net End of period credit balance c a r n e d d i f t r e e e x t c e r n e d d e it d b b a y la b n r c o e k s e s r i s n c is e t t h h e e d la if t f t e e r r e n a c re e a b v e a tw ila e b en le c f u o s r t o th m e e b rs r ’ o n k e e t r s d ’ e u b s i e t status 60 o r p e m r o c r e e nt 6 L 0 e p ss e r t h c a e n n t o ( f m d i o ll l i l o a n r s s ) until withdrawn. EQUITY STATUS OF MARGIN ACCOUNT DEBT 49.5 39.1 11.4 4,550 AT BROKERS July...................... 47.5 40.5 11.9 4,390 46.7 42.6 10.7 4.430 (Per cent of total debt, except as noted) 46.6 44.5 9.0 4,480 46.2 43.9 9.9 4.430 45.5 43.9 10.6 4,240 Total Equity class (per cent) 48.2 42.3 9.4 4,030 debt (mil­ 1971—Jan........................ 49.2 43.6 7.2 4,260 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 Feb....................... 4 4 4 9 6 8 . . . 1 8 6 4 4 48 5 4 . . . 1 5 2 5 6 5 . . . 1 9 7 4 4 4 , , , 5 3 4 0 8 0 0 0 0 lars) 1 May...................... 46.5 47.1 6.4 4,400 June..................... 45.1 47.8 7.0 4,250 1970—June. 3,860 8.3 12.4 18.8 15.7 13.5 31.4 A Ju u ly g . . . . 3 3, , 8 8 1 0 0 0 1 8 0 . . 1 7 1 1 5 5 . . 1 1 2 2 1 2 . . 1 9 1 16 6 . . 6 0 1 1 3 3 . . 8 6 2 21 5 . . 1 8 ma N y o b t e e .— use S d p e b c y ia c l u m sto is m ce e l r l s a n a e s o u th s e a m cc a o rg u i n n t s d e c p o o n s t i a t i n re q c u re ir d e i d t f b o a r l a a n d c d e i s t io th na a l t Sept.. 3,920 11.4 18.3 24.4 16.7 13.1 16.0 purchases. Balances may arise as transfers based on loan values of other Oct... 4,010 9.9 15.2 25.5 16.9 14.3 18.2 collateral in the customer’s margin account or deposits of cash (usually Nov.. 4,010 10.4 14.8 26.1 17.5 14.1 17.2 sales proceeds) occur. Dec.. 4,030 11.0 16.1 27.1 16.8 13.5 15.5 1971—Jan. . 4,000 12.1 19.6 28.3 17.1 10.0 12.8 Feb.. 4,090 11.4 19.5 31.1 16.3 9.3 12.3 Mar.. 4,300 11.8 20.0 33.0 16.2 7.2 11.8 Apr.. 4,530 11.8 20.3 35.0 15.0 6.2 11.7 May. 4,620 10.6 15.7 36.7 18.0 7.4 11.6 June. 4,720 9.6 14.4 34.9 20.1 8.6 12.2 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

AUGUST 1971 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 End of period M ga o g r e t­ Other G U o . v S t . . S l a o t n c a d a te l C r a o a n r t d e po­ Cash O as t s h e e ts r li T a a t b o i n e i t d s l a i l ­ D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity 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 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—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 1,005 2,804 May... 59,111 2,813 3,441 330 16,070 1,261 1,659 84,686 76,656 2,116 5,914 1,152 470 385 1,171 3,178 June... 59,488 2,686 3,418 311 16,675 1,281 1,633 85,493 77,628 1,944 5,921 1,118 517 342 1,244 3,222 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 8, 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. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign1 Total Bonds Stocks gages estate loans assets Statement value: 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—Apr.r........................... 199,574 10,872 4,446 3,231 3,195 85,346 71,954 13,392 72,846 6,042 14,771 9,697 May r........................... 199,598 10,931 4,500 3,235 3,196 84,909 72,099 12,810 73,024 6,077 14,967 9,690 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 Oct............................... 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 Mar.............................. 211,500 11,023 4,540 3,335 3,148 92,629 75,192 17,437 74,516 6,485 16,293 10,554 Apr............................... 212,698 10,946 4,454 3,375 3,117 93,756 75,604 18,152 74,536 6,535 16,370 10,555 May............................. 213,414 10,954 4,433 3,403 3,118 94,197 76,096 18,101 74,552 6,591 16,433 10,687 1 Issues of foreign governments and their subdivisions and bonds of Year-end figures: Annual statement asset values, with bonds carried the International Bank for Reconstruction and Development. on an amortized basis and stocks at year-end market value. Month-end figures: Book value of ledger assets. Adjustments for interest due and Note.—Institute of Life Insurance data; figures are estimates for all accrued and for differences between market and book values are not made life insurance companies in the United States. on each item separately but are included in total, in “Other assets.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 40 SAVINGS INSTITUTIONS □ AUGUST 1971 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments4 Total assets— End of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r t 1 t ­ ­ 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 f d r u i v e t n s e d ­ s m ro B o w n o e r e ­ d y3 p L ro o i c a n e n s s s Other d p M u er r a i i d o n e d g O e p u in n e t g s r d i t o a a o n d t f d ­ 196 1 68,834 5,211 3,315 4,775 82,135 70,885 5,708 2,856 1,550 1,136 1,872 196 2 78,770 5,563 3,926 5,346 93,605 80,236 6,520 3,629 1,999 1,221 2,193 196 3 90,944 6,445 3,979 6,191 107,559 91,308 7,209 5,015 2,528 1,499 2,572 196 4 101,333 6,966 4,015 7,041 119,355 101,887 7,899 5,601 2,239 1,729 2,549 196 5 110,306 7,414 3,900 7,960 129,580 110,385 8,704 6,444 2,198 1,849 2,707 196 6 114,427 7,762 3,366 8,378 133,933 113,969 9,096 7,462 1,270 2,136 1,482 196 7 121,805 9,180 3,442 9,107 143,534 124,531 9,546 4,738 2,257 2,462 3,004 196 8 130,802 i 11,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3,584 1969 5........... 140,347 10,893 2,439 8,620 162,299 135,670 11,239 9,728 2,455 3,207 807 2,812 1970 5—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.. 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.. 156,574 18,302 3,146 9,831 187,853 158,061 12,031 8,631 3,877 5,253 3,370 7,359 May1 158,747 18,650 3,000 10,087 190,484 160,221 12,035 7,774 4,336 6,118 3,505 8,300 June^ 161,362 18,624 2,781 10,142 192,909 163,307 12,349 7,900 4,734 4,619 3,517 8,542 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. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a A t n e o d c m ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s i d ­ t h s B n a o o n n te d 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 o g n r e t s ­ D n t a e u o n b r t e e d e s s n­ c L a o t o o i t v o a p e n e s s r­ D t e u b re e s n­ c L o a d o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 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—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 May.. 7,268 4,400 96 7,419 2,379 1,620 15,242 15,142 2,056 1,830 5,729 5,468 7,502 6,640 June.. 7,241 3,718 132 7,329 2,112 1,602 15,363 14,795 2,041 1,770 5,909 5,639 7,579 6,640 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1ST 1971 □ FEDERALLY SPONSORED CREDIT AGENCIE G ISSUES OF FEDERALLY SPONSORED AGENCIES, JUNE 30, 1971 Amount Cou­ Amount (millions Agency, and date of issue pon (millions Agency, and date of issue illioi of dollars) and maturity rate of dollars) and maturity iolla Federal National Mortgage Federal intermediate Association—Cont. credit banks Debentures—Cont: Debentures: 9/10/68 - 9/10/71........ 5% 350 10/1/70 - 7/1/71___ 547 428 6/10/70 - 10/21/71___ 8.45 500 11/2/70 - 8/2/71.... 584 583 5/10/69 - 11/10/71 6.85 350 12/1/70 - 9/1/71___ 432 338 3/10/70 - 12/10/71___ 6% 500 1/4/71 - 10/4/71.... 423 250 2/10/60 - 2/10/72........ 5H 98 2/1/71 - 11/1/71........ 696 200 3/10/69 - 3/10/72........ 6% 250 3/1/71 - 12/1/71........ 623 300 10/14/69 -3/10/72. . .. 6% 200 4/1/71 - 1/3/72.......... 691 200 12/11/61 - 6/12/72.. .. 4M 100 5/3/71 -2/1/72.......... 580 250 2/10/70 - 6/12/72........ 8.70 300 6/1/71 - 3/1/72.......... 436 350 5/11/70 - 9/11/72........ 8.40 400 3/2/70 - 3/1/73........ 203 400 6/10/70 - 9/11/72........ 7.40 200 9/1/70-7/2/73.......... 200 400 11/10/69 - 12/11/72... 8.00 200 1/4/71 - 7/1/74........ 224 450 10/13/70 - 12/11/72. . . 7.20 400 300 11/10/70 - 3/12/73___ 7.30 450 Federal land banks 250 12/12/69 - 3/12/73. . .. 8.30 250 Bonds: 300 6/12/61 - 6/12/73........ 4% 146 2/15/57 - 2/15/67-72 43^ 72 184 7/10/70 - 6/12/73........ 8.35 350 7/15/69 - 7/20/71. . . 8.15 270 233 3/10/70 - 9/10/73........ 8.10 300 10/20/69 - 7/20/71 . . 8.45 232 250 6/10/71 -9/10/73.......... 6.13 350 10/20/68 - 10/20/71. 6.00 447 265 12/10/70 - 12/10/73. . . 5.75 300 8/20/68 - 2/15/72. . . 5.70 230 300 4/10/70 - 3/11/74........ 7.75 350 2/23/71 - 4/20/72... . 4.45 300 350 8/5/70 - 6/10/74......... 7.90 400 4/20/71 -4/20/72... . 4% 437 200 9/10/69 - 9/10/74........ 7.85 250 6/22/70 - 7/20/72. . . 8.20 442 350 2/10/71 - 9/10/74.......... 5.65 300 9/14/56 - 9/15/72. . . 3K 109 200 5/10/71 - 12/10/74........ 6.10 250 9/22/69 - 9/15/72. . . 8.35 337 11/10/70 - 3/10/75.... 7.55 300 10/23/72 - 10/23/72. 5K 200 4/12/71 -6/10/75.......... 5.25 500 7/20/70 - 1/22/73. . . 7.95 407 10/13/70 - 9/10/75. . .. 7.50 350 2/20/63 - 2/20/73-78 43^ 148 3/11/71 - 3/10/76.......... 5.65 500 1/20/70 - 7/20/73.. . 8.45 198 6/10/71 -6/10/76.......... 6.70 250 8/20/73 - 7/20/73.... 7.95 350 1,544 2/13/62 - 2/10/77........ 4V4 198 4/20/70 - 10/22/73. . 7.80 300 12/10/70 - 6/10/77. . . . 6.38 250 2/20/72 - 2/20/74.. . 4% 155 250 5/10/71 - 6/10/77.......... 6.50 150 10/20/70 - 4/22/74. . 7.30 354 200 1/21/71 - 6/10/81........ 7.25 250 4/20/71 - 10/21/74... 5.30 300 2/10/71 - 6/10/82.......... 6.65 250 2/20/70 - 1/20/75. . . 220 3/11/71 - 6/1Q/83.......... 6.75 200 4/20/65 - 4/21/75. .. 200 400 4/12/71 -6/11/84.......... 6.25 200 2/21/66 - 2/24/76... 5.00 123 250 7/20/66 - 7/20/76... 5H 150 200 Ba D nk e s b e fo n r t u c r o e o s p : eratives 2 5 / / 2 2 0 /6 /6 6 7 - - 4 / 1 2 /2 0 2 /7 /7 8 9 _ . _ . _ . 5 5 . H 00 2 1 8 5 5 0 1/4/71 - 7/1/71... 5.25 340 2/23/71 -4/20/81. .. . 6.70 224 400 2/1/71-8/2/71.... 4.50 423 63 4/1/71 - 10/4/71.. . 3.70 342 200 5/3/71 - 11/1/71... 4.45 271 250 6/1/71 - 12/1/71 .. . 5% 294 96 10/1/70 - 10/1/73. 7.30 100 by the U.S. Govt.; see also note to table at bottom of opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 42 FEDERAL FINANCE □ AUGUST 1971 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public : Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 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 1971p................... 188,332 210,653 922 211,574 -23,242 27,211 -347 6,616 800 19,448 710 -979 3,526 Half year: 1 1 9 9 7 6 0 9 — —J J u an ly .- - J D u e n e e . . . 1 9 0 0 2 , , 8 9 3 1 3 0 9 97 6, , 8 5 9 63 3 1,3 7 6 6 4 7 9 9 8 7, , 6 9 6 2 1 7 -8 5 ,0 ,2 9 4 3 8 1 2 4 , , 6 5 9 05 3 -1 - , 4 3 2 1 9 0 5 3 , , 4 9 5 3 1 5 3 3 3 4 0 6 -4 9 , , 4 8 1 1 5 1 2 - , 7 9 6 1 7 8 -8 3 9 1 6 5 - 1 2 ,1 ,1 8 7 8 0 July-Dee.. 87,562 104,084 99 104,183 -16,621 18,240 -19 1,807 157 16,257 54 -952 -534 1971—Jan.-June^ 100,770 106,569 824 107,392 -6,620 8,971 -328 4,810 642 3,191 657 54 4,141 Month: 1970—Jun e r22,527 '14,837 r468 *•15,303 *•7,222 -169 -160 r3,010 -176 r —3,164 2,034 *•502 - 1,522 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 May.......... 13,190 16,882 270 17,152 -3,961 4,954 40 2,095 702 2,197 -1,973 -723 -931 June*1........ 22,449 20,003 112 20.115 2,334 1,285 -553 1,059 -17 -310 1,835 -268 -458 Selected balances Treasury operating balance Federal securities End Memo : of Less: Debt of period B F a . n R k . s ac l c T a o o n a a u d x n nts b G ala o n ld ce Total se P c d u u e b r b i l t i t i c es s A ec g u e r n it c ie y s S is p G I s e n u c o v e i v a s e t l s , t m ac e c n o t O u s n t o h ts f e r S n L p o e e t s c e s i s a : 3 l E p T h u q b o e b u y l t l d a a i l c l s: s c p p o G r o N r i n o v p o s v a s w o t . t e — . r - e 5 d Fiscal year: 196 8 1,074 4,113 111 5,298 347,578 24,399 59,374 19,766 2,209 290,629 10,041 196 9 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 197 0 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 1971^........... 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 N.A. Calendar year: 196 9 1,312 3,903 112 5,327 368,226 13,820 70,677 21,250 825 289,294 30,578 197 0 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 Month: 1970—June. 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,762 July.. 1,200 6,087 111 7,399 376,568 12,471 75,891 21,446 825 290,877 36,398 Aug.. 1,056 6,174 111 7,341 380,901 12,469 77,431 21,521 825 293,593 37,116 Sept.. 1,238 7,489 111 8,839 378,678 12,481 76,541 21,548 825 292,246 37,404 Oct... 920 5,424 111 6,455 380,200 12,465 75,363 21,669 825 294,808 37,811 Nov.. 587 5,217 110 5,914 383,640 12,460 75,444 21,717 825 298,113 38,252 Dec.. 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 1971—Jan.... 976 8,532 109 9,616 388,341 13,504 77,380 21,842 825 301,798 38.693 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 38.694 May.., 874 5,938 109 6,920 396,845 12,716 81,681 22,417 825 304,638 37,275 JuneP. 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 N.A. 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 securities held by the public 5 Includes debt of Federal home loan banks, Federal land banks, R.F.K. 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

AUGUST 1971 □ FEDERAL FINANCE A 43 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 i l t d h­ N w he i o t l h n d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s c E o P m t n a a y t x p r ­ i e l b o s y u a m ti n o e d n n s t 1 i e n U m s n u p - r l. . c O e n r i t e p h e ­ t t e s r 2 t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i e p s ­ t c s . 3 roll Selftaxes empl. Fiscal year: 196 8 153,671 57,301 20,951 9,52768,72629,897 1,23227,680 1,544 3,346 2,05234,622 14,079 2,038 3,051 2,491 196 9 187,78470,18227,258 10,191 87,24938,338 1,66032,521 1,715 .3,328 2,353 39,91815,222 2,319 3,491 2,908 197 0 193,74377,41626,23613,24090,41235,037 2,20837,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 1971*................... 188,33276,42224,265 14,52386,16430,341 3,53539,751 1,948 3,686 3,20248,587 16,629 2,590 3,709 3,847 Half year: 1969—July-Dee.. 90,833 38,797 5,771 48144,087 15,179 982 17,057 131 1,270 1,282 19,740 8,241 1,263 1,496 1,809 1970—Jan.-June. 102,91038,61920,465 12,75946,325 19,858 1,226 20,134 1,811 2,196 1,41625,558 7,464 1,168 2,148 1,615 July-Dee.. 87,56237,445 5,569 56542,449 12,744 1,467 17,768 133 1,348 1,57620,826 8,152 1,317 1,537 2,005 1971—Jan.-June* 100,77038,977 18,69613,95843,715 17,597 2,06921,983 1,815 2,338 1,62527,761 8,478 1,273 2,172 1,842 Month: 1970—Jun e r22,527 ''5,991 3,797 458 r9,329 7,517 188 3.294 127 70 278 3,769 1,367 207 328 '197 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—Ja..............n 15,773 6,339 4,280 4010,579 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 May........... 13,190 6,224 735 3,114 3,846 878 255 4,893 209 1,005 258 6,366 1,459 204 379 313 June*......... 22,449 6,622 3,684 506 9,801 6,705 236 3.311 115 69 277 3,773 1,525 249 326 306 Budget outlays4 Period Total t f i e N o d n n e a s ­ a e ­ l a I f n fa tl ir . s s S e p r a e a r ­ c c e h A t c u u g r r l e ­ i­ so N u u r r e a r a c ­ t l ­ es m t C r a a o e n n r m d c s e p ­ . d h 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 n u w a o n d c n e a ­ r ­ w H e a e l n a f d a lt r h e e V ra e n t­ s In e t s e t r­ g G e o r e v a n t l . ­ t I t g i r n o a o a t c n v n r ­ a t s s . - ­ 5 Fiscal year: 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 1971*................... 211,574 77,621 2,994 3,382 5,283 2,681 11,364 3,383 8,639 70,193 9,787 19,660 3,920 -7,375 1972c6................. 229,232 77,512 4,032 3,151 5,804 4,243 10,937 4,495 8,808 76,749 10,644 19,687 4,970 -7,771 Half year: 1969—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 1971—Jan.-June* 107,392 39,138 1,584 1,662 648 1,119 5,554 1,707 4,891 37,486 5,163 10,063 2,141 -3,766 Month: 1970—Jun e rl5,305 '6,848 225 378 -88 r215 '1,008 291 rl,152 '4,995 731 1,655 r372 -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 May......... 17,152 6,043 358 274 94 255 707 230 752 5,858 877 1,667 361 -325 June*........ 20,115 8,080 86 246 84 559 1,247 395 1,182 7,568 874 1,678 397 -2,283 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 $5,969 million for ous receipts. 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 44 U.S. GOVERNMENT SECURITIES □ AUGUST 1971 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues Total End of period p d g u e r b b o l t s i s c 1 Total Total Bills Ma C c r e a k r t e t e i t f s a i­ ble Notes Bonds 2 b C v i o b e o n r l n e d t­ ­ s T N o o ta n l m 3 ark b et S o i a n n a b g v d l s ­ e s i S ss p u e e c s i a 4 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 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—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 June. 398.1 313.5 245.5 86.7 104.8 54.0 2.3 65.7 53.6 82.8 July. 405.3 318.9 247.6 88.9 104.8 53.9 2.3 68.9 53.8 84.7 1 Includes non-interest-bearing debt (of which $626 million on July 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 e a 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 n t o e e d i n r g ­ a n l1 i O m t n o v t i r h s e s c e s . ­ r 2 funds bonds securities 1939—Dec................ 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec................ 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 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—June.............. 370.9 95.2 57.7 218.0 r53.6 2.9 6.8 11.1 24.6 51.6 30.9 14.8 '22.8 July............... 376.6 94.8 58.6 223.2 r54.3 2.8 7.1 '12.1 24.2 51.6 31.2 15.9 '23.8 Aug............... 380.9 96.4 59.9 224.6 r57.3 2.9 7.2 '12.0 24.2 51.7 30.6 16.5 '21.9 Sept............... 378.7 95.5 60.0 223.2 r56.3 2.9 7.1 '10.4 24.0 51.7 31.0 17.4 '22.3 Oct................ 380.2 94.4 60.0 225.8 '58.4 2.8 7.0 '11.2 24.2 51.9 30.5 18.2 '21.7 Nov............... 383.6 94.6 61.2 227.9 r59.3 2.7 6.9 '10.9 23.2 51.9 30.4 20.0 '22.2 Dec................ 389.2 97.1 62.1 229.9 r62.7 2.8 7.0 '10.5 22.9 52.1 29.8 20.6 '21.4 1971—Jan................. 388.3 96.7 61.8 229.9 '61.7 2.7 7.3 11.1 '23.2 52.1 '29.1 20.9 '21.6 Feb................ 390.7 98.0 62.5 230.2 '61.3 2.8 7.2 10.2 '24.0 52.3 '28.3 22.9 '21.1 Mar............... 391.7 98.8 64.2 228.7 '61.8 2.8 6.8 '10.7 '22.8 52.5 '26.9 25.4 18.9 Apr................ 391.9 99.1 63.7 229.1 '60.5 2.8 6.8 '9.9 '21.8 52.8 '26.2 29.2 '19.1 May............... 396.8 101.8 64.8 230.2 '59.4 2.9 6.8 '9.6 '21.8 53.0 '25.0 '33.8 18.1 June.............. 398.1 102.9 65.5 229.7 61.0 2.9 6.6 10.1 21.4 53.2 24.8 32.7 17.2 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

AUGUST 1971 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 e - a 2 rs 0 20 O y v e e a r rs 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—May 31....................................................... 245,635 113,959 89,096 24,863 88,003 24,501 8,472 10,699 June 30......................................................... 245,473 112,772 .86,677 26,095 89,074 24,503 8,455 10,670 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—May 31................................................ 18,109 2,869 979 1,890 6,962 4,047 1,775 2,456 June 30.................................................. 18,092 2,852 900 1,952 6,916 4,093 1,775 2,456 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—May 31................................................ 64,764 34,344 27,237 7,107 23,645 5,896 316 564 June 30.................................................. 65,518 35,117 27,929 7,188 23,601 5,907 323 570 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—May 31................................................ 162,762 76,746 60,880 15,866 57,396 14,558 6,381 7,679 June 30.................................................. 161,863 74,803 57,848 16,955 58,557 14,503 6,357 7,644 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—May 31........................................ 47,059 13,977 7,364 6,613 26,785 5,696 359 243 June 30.......................................... 47,231 13,756 6,907 6,849 27,264 5,592 363 255 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—May 31........................................ 2,880 435 222 213 1,236 501 330 378 June 30.......................................... 2,864 426 189 237 1,226 514 330 369 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—May 31........................................ 5,851 683 439 244 1,653 945 1,410 1,161 June 30.......................................... 5,668 595 303 292 1,622 924 1 ,382 1 ,146 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—May 31........................................ 3,014 1,827 1,629 198 1,075 102 2 9 June 30.......................................... 3,255 2,007 1 ,594 413 1,126 110 2 10 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—May 31........................................ 3,266 667 449 218 1,689 484 203 222 June 30.......................................... 3,197 613 380 233 1,656 495 203 230 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—May 31........................................ 11,411 5,712 4,796 916 2,403 826 1,027 1,444 June 30.......................................... 11,015 5,323 4,316 1,007 2,442 844 1,025 1,380 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—May 31........................................ 89,281 53,445 45,981 7,464 22,555 6,004 3,050 4,222 June 30.......................................... 88,633 52,083 44,159 7,924 23,221 6,024 3,052 4,254 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 5,680 commercial banks, 490 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 741 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to “All others.” Comparable data the 468 nonfinancial corporations and 487 savings and loan assns.; and are not available for earlier periods. (3) about 70 per cent by 502 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 46 U.S. GOVERNMENT SECURITIES □ AUGUST 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 Dealers and brokers securities Within 1-5 5-10 Over Com­ All 1 year years years 10 years U s . e S c . u G rit o ie v s t, Other m b e a r n c k ia s l other 1970—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 May............................. 2,322 1,695 406 192 29 837 100 742 643 480 June............................. 2,195 1,802 273 92 28 727 110 687 672 ! 418 Week ending— 1971—June 2....................... 2,460 2,048 257 127 29 888 114 767 692 569 9....................... 1,924 1,529 239 132 25 669 105 566 584 354 16....................... 1,865 1,560 211 72 23 632 101 537 595 437 23....................... 2,107 1,731 284 71 22 688 105 694 620 494 30....................... 2,646 2,164 367 78 38 787 118 888 853 358 July 7....................... 2,634 2,340 205 58 32 806 97 955 775 507 14....................... 2,376 2,039 240 73 24 832 117 782 644 490 21. 2,244 2,016 144 54 30 700 108 740 696 413 28....................... 2,588 1,933 522 104 29 859 179 876 673 552 Note.—The transactions data combine market purchases and sales of sales of securities under repurchase agreement, reverse repurchase (resale), U.S. Govt, securities dealers reporting to the F.R. Bank of New York. or similar contracts. Averages of daily figures based on the number of They do not include allotments of, and exchanges for, new U.S. Govt, trading days in the period. securities, redemptions of called or matured securities, or purchases or DEALER POSITIONS DEALER FINANCING (Par value, in millions of dollars) (In millions of dollars) U.S. Government securities, by maturity Commercial banks U.S. Period m t A a ie t l u s l ri­ W y i e 1 th ar in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G g e t c e i o e u n v s r c t i y . ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp ns o r i a­ o A th l e l r 1970—June............... 2,199 1,859 111 227 2 615 1970-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 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 2,646 2,115 189 331 11 818 May........... 3,389 1,095 475 517 1,301 June............... 2,735 2,477 116 130 12 776 June........... 3,163 1,061 523 435 1,145 Week ending— Week ending— 1971—May 5......... 3,322 2,687 192 427 16 875 1971—May 5... 4,292 1,456 723 574 1,540 12 2,854 2,124 319 394 17 833 12. .. 3,835 1,170 467 518 1,679 19......... 2,317 1,790 178 345 6 764 19. .. 3,423 1,074 452 560 1,337 26......... 2,356 1,994 109 249 4 828 26. .. 2,599 862 371 478 888 June 2........ 3,026 2,669 135 209 12 877 June 2... 3,144 1,120 495 502 1,028 9........ 2,894 2,585 123 165 21 800 9. .. 3,395 1,261 545 640 948 16........ 2,786 2,538 95 133 20 777 16. .. 3,415 1,179 595 456 1,186 25........ 2,287 2,064 88 121 14 795 23. .. 2,918 801 477 360 1,280 30........ 2,810 2,589 150 76 -5 689 30. .. 2,864 976 466 247 1,176 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

AUGUST 1971 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, JULY 31, 1971 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. 'reasury notes—Cont. Treasury bonds—Cont July 31, 1971 1.703 Dec. 31, 1971....... 1,702 Apr. 1, 1973 .. .• 1 % 34 Sept.15, 1967-72.•2*4 1,951 Aug. 5 1971.. 3,406 Jan. 6, 1972........ 1,592 May 15, 1973....■m 5,844 Dec. 15, 1967-72..21/2 2,560 Aug. 12 1971.. 3.400 Jan. 13, 1972........ 1,601 Aug. 15, 1973....• 8 Vs 1,839 Aug. 15, 4 2,806 Aug. 19 1971.. 3,404 Jan. 20, 1972........ 1,601 Oct. 1, 1973,...• l *4 30 Nov. 15, 1971....•37/s 1,081 Aug. 26 1971.. 3.503 Jan. 27, 1972........ 1,601 Feb. 15, 1974.....7% 3,145 Feb. 15, 1972.....4 980 Aug. 31 1971.. 1.704 Jan. 31, 1972........ 1.700 Apr. 1, 1974,... • 1V4 34 Aug. 15, 1972.....4 2,579 Sept. 2 1971.. 3.503 Feb. 29, 1972........ 1.701 May 15, 1974.....7*4 4,507 Aug. 15, 1973.... .4 3,894 Sept. 9 1971.. 3.502 Mar. 31, 1972........ 1.701 Aug. 15, 1974 ... •55/8 10,284 Nov. 15, 1973....• 41/s 4,343 Sept. 16 1971.. 3.502 Apr. 30, 1972........ 1,201 Oct. 1, 1974..., •1 *4 42 Feb. 15, • 4*i 3,126 Sept. 21 19711. 1,752 May 31, 1972........ 1,201 Nov. 15, .5 y4 7,212 May 15, 1974,....4*4 3,578 Sept. 23 1971.. 3,805 June 30,1972........ 1,200 Feb. 15, 1975,....5% 5,148 Nov. 15, 1974___•37/g 2,238 Sept. 30 1971.. 5.503 Apr. 1, 1975....• 1 Vi 8 May 15, 1975-85.• 4*4 1,212 Oct. 7 1971.. 3.903 May 15, .6 6,760 June 15, 1978-83..3*4 1,534 Oct. 14 1971.. 3.903 Aug. 15, 1975, ,,. 57A 7,680 Feb. 15, 1980.....4 2,591 Oct. 21 1971.. 3,703 Treasury notes Oct. 1, 1975,....1% 30 Nov. 15, 1980....•3*4 1,904 Oct. 28 1971. . 3,714 Aug. 15, 1971 ..8M 2,257 Feb. 15, 1976.....6% 3,739 May 15, 1985.....3*4 1,053 Oct. 31 1971.. 1.701 Oct. 1, 1971.,,...1*4 72 Apr. 1, 1976...,.1*4 4 Aug. 15, 1987-92..4*4 3,801 Nov. 4 1971.. 1.400 Nov. 15, 1971...-.53/8 963 May 15, 1976....• 6 *4 2,697 Feb. 15, 1988-93..4 247 Nov. 11 1971.. 1.400 Nov. 15, 1971..,...7% 5,836 Aug. 15, 1976.....71/2 4,194 May 15, 1989-94.•41/8 1,550 Nov. 18 1971.. 1,402 Feb. 15, 1972......4% 800 Feb. 15, 1977.....8 5,163 Feb. 15 1990.....3*4 4,636 Nov. 26 1971.. 1.400 Feb. 15, 1972..,...7*4 2,689 Aug. 15, 1977.....734 2,264 Feb. 15, 1995.... ,3 1,177 Nov. 30 1971.. 1.702 Apr. 1, 1972 ■..1*4 34 Feb. 15, 1978.,,, .6% 8,388 Nov. 15, 1998....• 3*4 3,846 Dec. 2 1971.. 1,395 May 15, 1972 ,,...4% 5,310 Dec. 9 1971.. 1.400 May 15, 1972...,..6% 2,037 Dec. 16 1971. . 1.400 Aug. 15, 1972,, .......5 3,452 Convertiblebonds Dec. 23 1971.. 1,603 Oct. 1, 1972..,...1*4 33 ’reasury bonds Investment Series B Dec. 30 1971 . . 1,601 Nov. 15, 1972.. , , ,6 2,286 June 15, 1967-72..21/2 1,231 Apr. 1, 1975-80..23^ 2,346 fTax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a . 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 ti t e i s l­ 4 H in o g u 5 s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1963............... 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,396 1964............... 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965............... 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966............... 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967............... 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968............... 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969............... 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 1970............... 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1970—June... 1,085 651 423 12 165 379 543 1,085 528 61 147 342 July. .. 1,348 1,055 288 4 388 229 730 1,348 268 130 142 4 803 Aug. .. 1,359 873 481 5 331 518 509 1,358 404 136 196 4 617 Sept.. . 1,758 1,207 541 9 534 536 688 1,756 491 137 243 21 864 Oct.. .. 1,924 1,184 695 32 13 290 531 1,102 1,923 532 123 380 68 821 Nov.. . 1,748 892 753 99 5 247 765 736 1,743 523 63 364 12 683 Dec__ 2,190 1,270 914 6 571 826 793 2,176 425 327 623 121 681 1971—Jan.'.. 2,705 1,613 969 121 2 577 1,136 991 2,694 509 390 428 373 993 Feb.r.. 1,839 1,225 607 7 585 616 638 1,823 518 133 315 123 735 Mar.r . 2,144 1,311 831 1 417 648 1,078 2,130 565 183 627 28 728 Apr.r . 1,907 1,349 553 5 440 501 968 1,864 506 66 469 19 804 Mayr . 2,135 1,091 837 197 10 486 1,064 585 2,127 610 447 429 214 424 June... 2,008 1,309 691 8 778 364 866 2,001 403 393 680 14 511 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 48 SECURITY ISSUES □ AUGUST 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 ag 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— 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 7,651 401 924 2,245 100 3,980 3,270 2,436 834 168 541 1971—Jan........... 7,438 436 1,050 2,614 223 3,115 2,627 2,033 594 76 413 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 Apr........... 7,640 467 1,137 1,859 172 4,007 2,591 2,118 473 573 878 May......... 6,870 466 1,000 2,114 116 3,174 2,543 2,097 445 52 578 i 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—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 ............................... 647 69 259 239 167 608 68 391 555 112 Feb..................................... 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 Apr.................................... 800 315 246 131 280 67 605 660 243 26 471 106 May................................... 609 226 132 131 190 89 447 140 406 2 760 113 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

AUGUST 1971 □ SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 196 6 19,799 7,541 12,258 15,629 4,542 11,088 4,169 3,000 1,169 196 7 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 196 8 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 196 9 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 197 0 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 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 1971—1.. 11,849 2,015 9,833 9,399 1,776 7,623 2,450 239 2,211 i Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B n o o nd te s s Stocks & B o n n o d te s s Stocks & B n o o 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 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 1971—1.................. 2,587 495 324 416 271 33 1,897 948 1,194 65 1,349 255 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com- 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- Note.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales i Re ti d o e n m s p­ s N al e e t s Total 2 po C si a ti s o h n 3 Other Sales 1 Re ti d o e n m s p­ s N al e e t s Total 2 po C si a t s io h n3 Other 1958.............. 1,620 511 1,109 13,242 634 12,608 1970—June.. 364 197 167 38,459 4,396 34,230 1959.............. 2,280 786 1,494 15,818 860 14,958 July... 306 193 113 40,714 4,817 35,897 1960.............. 2,097 842 1,255 17,026 973 16,053 Aug... 311 167 144 42,452 4,794 37,658 Sept... 357 218 139 44,353 4,593 39,760 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Oct.. . 420 243 177 43,567 4,377 39,190 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Nov... 343 215 128 45,223 4,126 41,097 1963.............. 2,460 1,504 952 25,214 1,341 23,873 Dec... 467 307 160 47,618 3,649 43,969 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 1971—Jan.... 487 242 245 50,251 3,663 46,588 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Feb.. . 349 322 27 51,300 3,600 47,700 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Mar... 468 425 43 53,618 3,328 50,290 Apr... 547 394 153 55,883 3,046 52,837 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 May.. 307 428 -121 53,610 2,607 51,003 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 June.. 434 450 -16 53,560 2,830 50,730 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 50 BUSINESS FINANCE □ AUGUST 1971 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 1965 1966 1967 1968 1969 I II III IV I II III IV Manufacturing Total (177 corps.): Sales.............................................. 177,237195,738201,399225,740243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 Profits before taxes....................... 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes......................... 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends...................................... 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.):2 Sales.............................................. 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes...................... 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes......................... 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends...................................... 2,527 2,729 3,027 3,082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.):3 Sales.............................................. 112,341 122,094123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 Profits before taxes...................... 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 Profits after taxes....................... 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 Dividends..................................... 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales............................................. 16,427 19,038 20,134 22,109 24,593 5,184 5,389 5,737 5,799 5,714 5,923 6,631 6,325 Profits before taxes..................... 1,710 1,916 1,967 2,227 2,425 498 563 590 576 534 581 666 644 Profits after taxes....................... 896 1,008 1,041 1,093 1,171 255 260 285 293 261 275 314 321 Dividends.................................... 509 564 583 616 661 150 155 155 156 162 165 164 170 Chemical and allied products (20 corps.): Sales............................................ 18,158 20,007 20,561 22,808 24,494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 6,183 Profits before taxes..................... 2,891 3,073 2,731 3,117 3,258 760 807 806 744 844 875 818 721 Profits after taxes....................... 1,630 1,737 1,579 1,618 1,773 390 419 412 398 448 473 441 411 Dividends.................................... 926 948 960 1,002 1,031 236 236 243 287 252 251 254 274 Petroleum refining (16 corps.): Sales............................................ 17,828 20,887 23,258 24,218 25,586 5,890 6,013 6,100 6,214 6,107 6,610 6,264 6,605 Profits before taxes..................... 1,962 2,681 3,004 2,866 2,941 767 692 740 667 726 728 750 737 Profits after taxes........................ 1,541 1,898 2,038 2,206 2,224 592 520 561 534 562 558 554 550 Dividends...................................... 737 817 1,079 1,039 1,123 253 255 258 273 282 273 282 286 Primary metals and products (34 corps.): Sales............................................ 26,548 28,558 26,532 30,171 33,674 7,150 8,427 7,461 7,133 7,671 8,612 8,448 8,943 Profits before taxes..................... 2,931 3,277 2,487 2,921 3,052 669 915 601 735 691 828 715 818 Profits after taxes....................... 1,689 1,903 1,506 1,750 1,912 376 550 343 482 431 504 435 542 Dividends.................................... 818 924 892 952 987 224 230 233 264 242 245 247 253 Machinery (24 corps.): Sales............................................. 25,364 29,512 32,721 35,660 38,719 8,371 8,864 8,907 9,517 8,957 9,757 10,542 9,463 Profits before taxes..................... 3,107 3,612 3,482 4,134 4,377 936 1,008 1,112 1,079 1,071 1,167 1,141 998 Profits after taxes....................... 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends.................................... 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales.............................................. 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes...................... 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1,663 1,542 652 1,411 Profits after taxes......................... 3,294 2,877 1,999 2,903 2,604 783 847 330 943 806 750 342 706 Dividends...................................... 1,890 1,775 1,567 1,642 1,723 364 364 364 550 365 436 366 556 Public utility Railroad: Operating revenue........................ 10,208 10,661 10,377 10,859 11,451 2,611 2,758 2,708 2,782 2,741 2,916 2,836 2,958 Profits before taxes....................... 979 1,094 385 678 683 127 206 149 196 128 220 149 186 Profits after taxes......................... 815 906 319 565 461 112 174 110 169 98 173 98 92 Dividends...................................... 468 502 538 515 488 117 132 100 166 116 136 100 136 Electric power: Operating revenue........................ 15,816 16,959 17,954 19,421 21,075 5,106 4,553 4,869 4,892 5,480 4,913 5,370 5,312 Profits before taxes....................... 4,213 4,414 4,547 4,789 4,938 1,351 1,040 1,271 1,125 1,384 1,065 1,366 1,123 Profits after taxes......................... 2,586 2,749 2,908 3,002 3,186 863 641 764 733 873 707 827 779 Dividends...................................... 1,838 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

AUGUST 1971 □ BUSINESS FINANCE A 51 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 fi t i t e s s d ­ co c a n a l t l s i p o o u i w n t m a ­ l p­ Quarter P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a a r f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a t n a l i l s o p o u n i w t m a ­ l p ­ ances1 ances 1 1963.............. 59.4 26.3 33.1 16.5 16.6 31.8 1969—III'.. 81.2 38.2 43.0 24.7 18.3 51.9 1964.............. 66.8 28.3 38.4 17.8 20.6 33.9 IV'.. 80.0 37.7 42.3 24.9 17.4 53.2 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—I'. .. 75.6 34.1 41.5 25.0 16.6 54.4 II'. . 75.8 34.5 41.3 24.9 16.4 55.7 1967.............. 79.8 33.2 46.6 21.4 25.3 43.0 III'.. 78.5 35.6 42.9 25.2 17.7 56.7 1968 '............ 87.6 39.9 47.8 23.6 24.2 46.8 IV'.. 71.6 32.3 39.2 25.0 14.3 58.0 1969 '............ 84.2 39.7 44.5 24.4 20.0 51.3 1970'............ 75.4 34.1 41.2 25.0 16.2 56.2 1971—I'. .. 82.6 37.9 44.7 25.6 19.1 59.1 i Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties G U o . v S t . . 1 Other G U o . v S t . . 1 Other taxes 1963.............................. 163.5 351.7 46.5 20.2 3.6 156.8 107.0 17.8 188.2 2.5 130.4 16.5 38.7 1964.............................. 170.0 372.2 47.3 18.6 3.4 169.9 113.5 19.6 202.2 2.7 140.3 17.0 42.2 1965.............................. 180.7 410.2 49.9 17.0 3.9 190.2 126.9 22.3 229.6 3.1 160.4 19.1 46.9 1966.............................. 188.2 442.6 49.3 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—III..................... 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 1971—1........................ 220.4 576.9 55.8 10.1 4.2 269.8 196.8 40.1 356.5 6.1 c240.3 18.6 91.4 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (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 t her 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..................... 81.85 14.67 15.93 1.99 1.73 1.82 1.45 12.89 2.43 11.23 17.71 1969—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............... 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 52 REAL ESTATE CREDIT □ AUGUST 1971 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O ld th 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 il r y o p a e n r d ti es 5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i a t n d h n u d e d a i r ­ l s s h A e o r l l s d l ­ t F u 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 i n i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ F w u H V n ri d A A t e te - — r n - t C 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—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'. 443.4 349.9 31.7 61.7 30.8 10.0 20.8 412.5 276.0 228.5 47.5 136.5 111.4 25.1 106.8 305.4 IV'. 451.7 356.2 33.0 62.6 31.2 10.1 21.1 420.5 280.2 231.4 48.8 140.3 114.6 25.7 109.1 310.9 1971—1. 458.7 361.8 33.6 63.3 31.7 10.1 21.6 427.0 283.5 234.4 49.1 143.4 117.3 26.1 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-54. 1968, new GNMA as well as FHA, VA, PH A, 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-54. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings : 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—11....................... 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 II*..................... 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 1971—I......................... 74,175 46,062 23,662 4,451 58,710 50,479 8,106 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

AUGUST 1971 □ REAL ESTATE CREDIT A 53 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 1 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 m i 69,973 64,172 '12,469 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—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 5,670 553 533 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 Mar.................................... 623 579 33 5 541 44 74,516 68,973 11,302 5,316 52,355 5,543 Apr.................................... 578 533 18 8 507 45 74,536 68,993 11,237 5,284 52,472 5,543 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 outst anding Loans made Loans outstanding (end of period) (end of perilod) Ad­ Repay­ Members’ Period vances ments deposits Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t­ 1 t L e o rm ng ­ 2 Total i con­ pur­ Total 2 in- guar- ven­ struc­ chase sured anteed tional tion 1945. 278 213 195 176 19 46 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 1 1 1 9 9 9 6 6 6 6 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 4 4 6 , , , 9 1 9 1 9 2 3 2 4 3 6 6 , , , 6 6 0 5 3 1 3 8 3 1 1 7 0 0 , , , 8 5 8 2 3 3 8 8 0 1 1 1 0 1 14 1 0 , , , 4 3 3 2 3 0 3 7 6 5 5 4 , , , 1 2 8 4 6 9 5 9 4 6 6 6 , , , 6 3 1 9 5 83 8 7 1 9 8 0 8 9 3 , , , 7 0 7 0 6 5 1 3 6 1 1 9 9 6 6 8 9. 2 5 1 , , , 5 7 5 3 2 3 1 7 4 4 1 1 , , , 0 8 5 6 7 0 1 6 0 4 5 9 , , , 2 3 2 5 8 8 9 6 9 4 3 8 , , , 8 9 4 8 6 3 5 7 4 4 8 3 0 5 9 1 5 2 1 1 1 , , , 0 4 3 4 8 3 1 2 2 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 7,012117,132 1 1 9 9 6 7 9 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 1 , , 8 3 4 8 7 7 4 4, , 7 1 5 5 7 0 1 1 1 0 , , 2 23 5 9 4 1 1 4 50 0 , , 5 3 6 4 2 7 1 7 0 , , 9 1 1 9 7 5 7 8 , , 6 5 5 0 8 7 1 1 2 3 4 1 , , 7 8 7 6 2 0 1970- July............ 2 2 1 4 9 7 3 9 9 1 1 7 0 0 1 6 6 1 1 1 0 0 0, , , 3 4 2 7 4 3 3 6 6 7 4 3 , , , 4 0 9 4 0 6 5 7 2 5 6 3 , , , 9 4 2 2 7 3 7 8 4 1 1 1 , , , 3 2 1 3 9 3 1 8 3 1970—Apr... 1,400 325 627 141,252 8,184 7,712 125,356 204 125 10,524 3,477 7,047 1,339 May .. 1,586 373 741 141,975 8,325 7,761 125,889 134 119 10,539 3,265 7,274 1,496 June. . 2,086 398 1,017 143,103 8,579 7,862126,662 112 126 10,524 3,156 7,368 1,978 July... 2,080 393 1,071 143,103 8,579 7,862 '127,403 224 134 10,615 3,081 7,534 2,331 Aug... 2,111 369 1,147 145,296 9,011 8,050 '128,234 Sept... 2,183 388 1,100 146,418 9,224 8,115 129,079 1971- 43 331 10,326 2,924 7,403 2,750 Oct.... 2,127 406 1,032 147,570 9,441 8,230129,903 Feb............. 27 428 9,926 2,697 7,230 3,093 Nov... 1,972 355 919 148,896 9,226 8,336 130,794 71 1,492 8,269 2,226 6,043 2,828 Dec.. . 2,474 416 968 150,560 10,195 8,507 131,860 151 1,151 7,267 2,322 4,945 2,376 238 264 7,241 2,397 4,844 2,111 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.'. 2,795 521 1,143 154,430 12,123 8,922134,320 1 Secured or unsecured loans maturing in 1 year or less. Apr.r. 3,168 597 1,306 156,57411,560 9,128 135,886 2 Secured loans, amortized quarterly, having maturities of more than May*3. 3,432 622 1,451 158,747 11,889 9,299 137,568 1 year but not more than 10 years. Note.—Federal Home Loan Bank Board data. 1 Includes loans for repairs, additions and alterations, refinancing, etc. not shown separately. 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 54 REAL ESTATE CREDIT □ AUGUST 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 Multifamily1 G un o d v e e r r w nm rit e t n en t- Con­ End of End of period Total ven­ period Total t F u i i n c t n i i s o a a t l i n n ­ s ­ h O ol t d h e e r r s Total t F u i i c n t n i i s o a a t l i n n ­ s ­ h O ol t d h e e r r s Total F su H in re A - d - an g V u te A a e r - - d 1 tional 1 1 9 9 4 4 5 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 4 4 . . 3 2 1 1 4 5 . . 9 7 9 8. . 6 4 5 5. . 9 7 3 3 . . 5 6 2 2 . . 2 2 1 1 19 9 9 6 6 5 3 4 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 8 9 8 2 7 . . . 6 2 6 6 6 4 5 9 . . . 3 9 2 3 3 4 5 8 . . . 1 3 0 3 3 0 0 . . . 2 9 9 1 1 1 1 2 4 6 8 . . . 3 3 3 1963............... 211.2 176.7 34.5 29.0 20.7 8.3 1964............... 231.1 195.4 35.7 33.6 25.1 8.5 1965............................... 212.9 73.1 42.0 31.1 139.8 1 1 1 9 9 9 6 6 6 7 6 5 * . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 5 8 6 0 0 4 . . . 1 0 0 2 2 2 2 1 3 3 6 3 . . .6 7 2 4 4 3 0 3 6 . . . 3 4 9 4 4 3 0 3 7 . . . 3 9 2 2 3 31 4 9 . . . 5 7 0 9 8 8 . . . 8 2 2 1 1 1 9 9 9 6 6 6 7 6 8 * * .. . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . . . .. . . . . . . . .. . . . . . . . .. . . . . . . . . . . .. . . . . . 2 2 23 2 5 6 3 1 . . . 1 6 2 7 7 8 6 9 3 . . . 1 9 8 5 4 4 4 0 7 . . . 8 4 6 3 3 3 1 2 3 . . . 3 5 2 1 1 1 4 5 6 6 7 7 . . . 1 6 4 1968*............. 298.6 250.8 47.8 47.3 37.7 9.6 243.2 82.1 48.7 33.4 161.1 1969— I 1 I .. . . . . . . . . . . . . . . . . 3 3 0 0 8 3 . . 9 0 2 2 5 5 9 4 . . 3 4 4 4 9 8 . . 6 6 4 4 8 9 . . 3 4 3 3 9 8 . . 3 4 1 9 0. . 1 9 2 2 4 5 7 1 . . 0 2 8 83 4 . . 2 4 4 5 9 0 . .6 6 3 33 3 . .8 6 1 16 6 3 6 . . 8 8 I I V ll . _ .. _ .. _ .. 3 31 1 4 9 . . 1 0 2 2 6 62 5 . . 7 0 5 5 4 1 . . 0 4 5 5 2 0 . . 2 6 4 4 1 0 . . 3 2 1 1 0 0 . . 9 4 1969— I 1 I .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 5 5 4 9 . . 8 5 8 8 5 7. . 1 3 5 5 1 2 . .2 4 3 3 3 4. . 9 9 1 1 6 7 9 2 . . 5 3 1970— I 1 I .. . . . . . . . . . . . . . . . . 3 32 2 1 6. . 3 7 2 26 6 8 5. .9 9 5 5 5 7 . . 8 4 5 5 4 3 . . 5 2 4 4 3 2. . 9 2 1 10 1 . .3 3 2 2 6 6 3 6 . . 5 8 9 8 0 8 . . 1 8 5 54 3 . . 5 4 3 3 5 5. . 6 4 1 1 7 7 6 4 . . 9 6 I I V II r r . . . . . . . 3 3 3 3 8 2 . . 2 2 2 2 7 7 2 7 . . 8 2 6 59 1 . . 4 0 5 56 8 . . 1 0 4 45 4 . . 8 3 1 11 2 . . 8 2 2 2 6 7 8 1 . . 5 7 9 9 2 1 . . 1 6 5 5 6 5 . . 1 6 3 3 6 6 . .0 0 1 1 7 77 9 . . 1 9 1971—I*........ 343.0 281.3 61.7 59.4 46.8 12.6 IIIr..................... 2 2 8 7 0 6 . . 2 0 9 9 7 5 . . 1 1 5 5 8 9 . . 1 9 3 37 7. .2 0 1 1 8 8 0 2. . 5 7 i Structures of five or more units. 1971—ip......................... 283.5 sta N nd o i t n e g .— ” t B a a b s l e e d ( s o e n c o d n a d t a p r f e ro ce m d i s n a g m p e a g so e) u . rce as for “Mortgage Debt Out­ 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. Note.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL LOANS MADE (In millions of dollars) DELINQUENCY RATES ON HOME MORTGAGES (Per 100 mortgages held or serviced) FHA-insured VA-guaranteed Loans not in foreclosure Mortgages Mortgages but delinquent for— Loans in Period Prop­ fore­ Pro­ erty End of period closure Total h N om ew es h is o E t m i x n ­ e g s jects 1 m p i r 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 Total 30 days 60 days o 9 r 0 m da o y r s e 1963............... 3.30 2.32 .60 .38 .34 1945............ 665 257 217 20 171 192 3.21 2.35 .55 .31 .38 1964............ 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1965............... 3.29 2.40 .55 .34 .40 1965............ 8,689 1,705 5,760 591 634 2,652 876 1,774 1966............... 3.40 2.54 .54 .32 .36 1966............ 7,320 1,729 4,366 583 641 2,600 980 1,618 1967............... 3.47 2.66 .54 .27 .32 1967............ 7,150 1,369 4,516 642 623 3,405 1,143 2,259 1968............... 3.17 2.43 .51 .23 .26 1968............ 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 1969............... 3.22 2.43 .52 .27 .27 1969............ 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 1970............ 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 1966—IV.. .. 3.40 2.54 .54 .32 .36 1970—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 Ill.... 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.. r1,063 r273 497 r248 45 318 106 212 2.84 2.11 .49 .24 .32 Dec.. rl,351 r280 472 r549 50 316 109 207 II........ 2.89 2.23 .44 .22 .28 III.... 2.93 2.23 .48 .22 .26 1971—Jan... r999 295 *476 r 187 r4\ 297 102 195 IV___ 3.17 2.43 .51 .23 .26 Feb.. r951 284 *450 r 185 r32 256 90 166 Mar.r 1,097 318 *531 202 46 303 98 205 1969—1.......... 2.77 2.04 .49 .24 .26 Apr.r 1,136 293 *467 330 46 350 98 252 2.68 2.06 .41 .21 .25 May r 1,203 290 504 354 55 417 111 306 Ill.... 2.91 2.18 .47 .26 .25 Juner 1,372 322 629 399 21 IV___ 3.22 2.43 .52 .27 .27 1970—1.......... 2.96 2.14 .52 .30 .31 1 Monthly figures do not reflect mortgage amendments included in annual II........ 2.83 2.10 .45 .28 .31 totals. Ill.... 3.10 2.26 .53 .31 .25 2 Not ordinarily secured by mortgages. 3.64 2.67 .61 .36 .33 3 Includes a small amount of alteration and repair loans, not shown separ­ ately; only such loans in amounts of more than $1,000 need be secured. 3.21 2.26 .56 .39 .40 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

AUGUST 1971 □ REAL ESTATE CREDIT A 55 GOVERNMENT NATIONAL MORTGAGE FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY ASSOCIATION ACTIVITY (In millions of dollars) (In millions of dollars) Mortgage Mortgage Mortgage Mortgage Mortgage Mortgage holdings transactions commitments holdings transactions commitments (during (during End of periiod) End of period) period period Total F su H in re A - d - a g n V u t A e a e r - - d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Total F su H in r A e ­ d - a g V n u t A e a e r - - d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ 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-May.. 5,006 4,426 580 62 92 925 1970-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 r4 139 5,092 1971-Jan— 5,188 4,641 546 35 27 705 Feb.. . 15,448 11,057 4,391 61 r72 80 4,865 Feb.. . 5,213 4,670 543 38 21 682 Mar... 15,420 11,012 4,408 76 r46 312 4,318 Mar... 5,241 4,703 538 56 100 707 Apr... 15,308 10,933 4,375 57 r104 457 4,318 Apr... 5,244 4,710 534 39 120 786 May r. 15,242 10,893 4,349 89 91 888 4,866 May. . 5,261 4,731 530 40 171 906 June.. 15,363 10,970 4,393 236 9 1,303 5,700 Note.—Government National Mortgage Assn. data. Data prior to Note.—Federal National Mortgage Assn. data. Data prior to Sept. Sept. 1968 relate to Special Assistance and Management and Liquidating 1968 relate to secondary market portfolio of former FNMA. Mortgage portfolios of former FNMA and include mortgages subject to participation commitments made during the period include some multifamily and non­ pool of Government Mortgage Liquidation Trust, but exclude conven­ profit hospital loan commitments in addition to 1- to 4- family loan com­ tional mortgage loans acquired by former FNMA from the RFC Mortgage mitments accepted in FNMA’s free market auction system. Co., the Defense Homes Corp., the Public Housing Admin., and Com­ munity Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION (In per cent) ACTIVITY UNDER FREE MARKET SYSTEM Primary market Secondary Implicit yield, by (conventional loans) market Mortgage amounts commitment period (in months) FHA series FHLBB series Yield Date Accepted Period (effective rate) on FHA- of insured auction New Existing h N om ew es h lo n o a e m w ns 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—Nov. 2.. 341.5 181.2 100.0 62.4 18.7 8.90 8.93 8.93 1970—June........... 8.48 8.36 8.55 9.16 16.. 222.4 170.3 75.8 79.4 15.1 8.89 8.90 8.92 July............ 8.49 8.37 8.60 9.11 Aug............ 8.52 8.41 8.60 9.07 Dec. 7.. 166.5 127.8 54.7 60.9 12.2 8.56 8.54 8.57 Sept............ 8.48 8.42 8.50 9.01 14.. 165.1 124.7 42.1 72.1 10.5 8.51 8.43 8.47 Oct............. 8.51 8.35 8.50 8.97 Nov............ 8.43 8.32 8.45 8.90 1971—Jan. 25.. 44.1 35.5 9.9 25.6 7.82 7.96 8.40 Dec............. 8.38 8.26 8.30 8.40 Feb. 8.. 23.4 23.3 10.6 12.7 7.67 7.67 1971—Jan.............. 8.18 8.08 7.95 Feb............. 7.91 7.80 7.75 Mar. 1.. 185.6 51.8 15.2 29.3 7.3 7.43 7.43 7.56 Mar............. 7.66 7.60 7.60 7.32 15.. 193.5 74.0 17.9 41.2 14.9 7.32 7.44 7.54 Apr............. 7.49 7.47 7.55 7.37 29.. 122.5 67.0 36.7 26.3 3.9 7.32 7.45 7.55 7.47 7.45 7.65 7.75 June............ 7.50 7.50 7.70 7.89 Apr. 12.. 126.9 54.6 39.8 9.4 5.4 7.32 7.45 7.53 26.. 687.2 313.9 154.0 126.6 33.4 7.43 7.54 7.57 Note.—Annual data are averages of monthly figures. The May 10.. 1,168.0 236.8 145.7 71.3 19.7 7.57 7.68 7.74 FHA data are based on opinion reports submitted by field offices 24.. 785.7 151.6 44.6 84.4 22.5 7.95 7.97 8.03 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from June 1.. 322.4 146.6 77.1 57.8 11.6 8.05 8.18 8.16 weighted averages of private secondary market prices for Sec. 14.. 638.2 191.2 133.7 47.3 10.2 7.91 8.15 8.22 203, 30-year mortgages with minimum downpayment and an 28.. 539.0 262.6 191.8 60.3 10.4 7.92 8.22 8.28 assumed prepayment at the end of 15 years. Gaps in data are due to periods of adjustment to changes in maximum permis­ July 12.. 606 241.1 161.8 60.3 10.4 7.98 8.23 8.31 sible contract interest rates. The FHA series on average contract 28.. 686 183.4 183.3 58.2 21.1 8.07 interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. Th3 FHLBB effective rate series reflects fees and charges as well Note.—Implicit secondary market yields are gross—before deduction of 38as contract rates (as shown in the table on conventional first- basis-point fee paid for mortgage servicing. They reflect the average accepted bid mortgage terms, p. A-37) and an assumed prepayment at end yield for Govt.-underwritten mortgages after adjustment by Federal Reserve of 10 years to allow for FNMA commitment fees and FNMA stock purchase and holding requirements, assuming a prepayment period of 15 years for 30-year loans. Com­ mitments for 12-18 months are for new homes only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ AUGUST 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—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 6,960 123,866 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 7,402 123,815 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 May............................. 126,025 100,692 35,819 28,706 4,126 32,041 25,333 9,765 8,004 7,564 June............................. 127,388 101,862 36,349 28,976 4,186 32,351 25,526 9,862 8,214 7,450 1 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 89,890 77,457 36,952 29,098 10,178 1,229 12,433 320 12,113 1969............................................................. 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 12,851 1970............................................................. 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1970—June................................................. 98,699 86,311 40,979 31,862 12,030 1,440 12,388 336 12,052 July.................................................. 99,302 86,876 41,703 31,561 12,141 1,471 12,426 337 12,089 Aug.................................................. 99,860 87,315 41,934 31,588 12,292 1,501 12,545 337 12,208 Sept.................................................. 100,142 87,471 42,051 31,510 12,409 1,501 12,671 337 12,334 Oct................................................... 99,959 87,243 42,010 31,309 12,422 1,502 12,716 335 12,381 Nov.................................................. 99,790 86,820 41,740 31,081 12,438 1,561 12,970 332 12,638 Dec................................................... 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1971—Jan................................................... 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 Mar.................................................. 99,168 86,015 41,563 30,326 12,509 1,617 13,153 325 12,828 Apr................................................... 100,028 86,805 42,094 30,369 12,686 1,656 13,223 330 12,893 May.................................................. 100,692 87,491 42,482 30,441 12,874 1,694 13,201 334 12,867 June.................................................. 101,862 88,544 43,011 30,609 13,206 1,718 13,318 339 12,979 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

AUGUST 1971 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Automobile Repair E p n er d i o o d f Total ch P a u s r e ­ d pape D r irect s g O p c u o a o t m p o h n d e e e ­ r s r r m iz l o o a a d n a ti e n d o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e i o l r ­ e s g O p c u o a t o m o p h n d e e e ­ s r r r m i R z lo a o e a n a d p ti n d e a o s r i n r n­ s l P o o a e n n r a ­ s l 1939............... 1,079 237 178 166 135 363 1939, 1,836 932 134 151 619 1941............... 1,726 447 338 309 161 ■ 471 1941 2,541 1,438 194 204 705 1945............... 745 66 143 114 110 312 1945, 910 202 40 62 606 1950............... 5,798 1,177 1,294 1,456 834 1,037 1950, 5,315 3,157 692 80 1,386 1955............... 10,601 3,243 2,062 2,042 1,338 1,916 1955, 11,838 7,108 1,448 42 3,240 1960............... 16,672 5,316 2,820 2,759 2,200 3,577 1960 15,435 7,703 2,553 173 5,006 1965............... 28,962 10,209 5,659 4,166 2,571 6,357 1965, 24,282 9,400 4,425 224 10,233 1966............... 31,319 11,024 5,956 4,681 2,647 7,011 1966, 26,091 9,889 5,171 191 10,840 1967............... 32,700 10,927 6,267 5,126 2,629 7,751 1967 26,734 9,538 5,479 154 11,563 1968............... 36,952 12,213 7,105 6,060 2,719 8,855 1968. 29,098 10,279 5,999 113 12,707 1969............... 40,305 12,784 7,620 7,415 2,751 9,735 1969, 31,734 11,053 6,514 106 14,061 1970............... 41,895 12,433 7,587 8,633 2,760 10,482 1970, 31,123 9,941 6,648 94 14,440 1970—June... 40,979 12,680 7,722 7,828 2,731 10,018 1970—June.................... 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 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 May... 42,482 12,361 7,942 8,676 2,729 10,774 30,441 9,810 6,236 100 14,295 June... 43,011 12,484 8,098 8,821 2,765 10,843 30,609 9,918 6,224 101 14,366 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—June.................... 13,470 4,998 863 1,211 6,398 196 8 23,301 7,975 1,163 6,450 1,305 6,408 July..................... 13,612 5,049 872 1,230 6,461 196 9 24,300 7,900 1,196 6,650 1,584 6,970 Aug..................... 13,793 5,110 881 1,240 6,562 197 0 25.641 8.205 1.279 6.932 1.918 7.307 Sept..................... 13,910 5,158 890 1,246 6,616 Oct...................... 13,924 5,164 891 1,247 6,622 1970—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 14,568 5,372 927 1,297 6,972 1971—Jan... 24,976 8,196 1,284 6,144 1,950 7,402 June..................... 14,924 5,510 952 1,320 7,142 Feb... 24,571 8.205 1,301 5,435 1.918 7,712 Mar... 24,436 8,249 1,308 5,316 1,891 7,672 Apr... 25,019 8,350 1,326 5,774 1,915 7,654 Note.—Other financial lenders consist of credit unions and miscel­ May.. 25,333 8,425 1,340 6,046 1,958 7,564 laneous lenders. June.. 25,526 8,512 1,350 6,199 2,015 7,450 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 58 CONSUMER CREDIT □ AUGUST 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.i N.S.A. S. A.1 N.S.A. S. A.1 N.S.A. S.A.i N.S.A. S.A.i N.S.A. Extensions 1965........................................ 78,586 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 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 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 Dec............................... 8,536 10,194 2,170 2,045 3,281 4,562 177 149 2,908 3,438 1971—Jan................................ 8,916 7,545 2,461 1,997 3,252 2,868 177 122 3,026 2,558 Feb............................... 9,081 7,489 2,687 2,336 3,204 2,431 197 155 2,993 2,567 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 May............................. c9,690 c9,562 c2,756 c 2,883 3,295 3,148 200 235 3,439 3,296 June............................. 9,715 10,667 2,838 3,301 3,433 3,538 224 263 3,220 3,565 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—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 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 May.................................. C9,197 «8,898 c2,640 «2,560 3,211 3,124 188 186 3,158 3,028 June............................. 9,190 9,497 2,678 2,771 3,233 3,268 192 203 3,087 3,255 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 1,694 441 993 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 32 170 269 493 664 116 323 84 24 12 49 281 268 June............................. 525 1,170 160 530 200 270 32 60 133 310 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

AUGUST 1971 □ CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Commercial banks Finance companies lenders Retail outlets 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 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—June. 8,683 9,534 3,262 3,643 2,616 2,912 233 1,407 572 1,572 July.. 9,065 9,497 3,382 3,697 2,590 2,731 365 1.418 728 1,651 Aug.. 8,809 8,915 3,308 3,385 2,427 2,416 235 1,318 839 1,796 Sept.. 8,849 8,580 3,417 3,352 2,441 2,300 265 1,212 726 1,716 Oct.. 8,580 8,670 3,276 3,301 2,371 2,387 221 1,187 712 1,795 Nov.. 8,414 8,271 3,159 2.885 2,300 2,342 184 1,150 771 1,894 Dec.. 8,536 10,194 3,326 3,390 2,240 2,795 187 1,206 783 2,803 1971—Jan... 8,916 7,545 3,338 2.885 2,411 1,961 288 1,055 879 1,644 Feb.. 9,081 7,489 3,478 2,988 2,513 2,121 282 1,117 808 1,263 Mar.. 9,533 9,575 3,646 3,783 2,681 2,686 394 1.418 812 1,688 Apr.. 9,751 10,079 3,676 3,948 2,624 2,672 475 1,552 976 1,907 May. c9,690 c9,562 3,600 3,671 '2,798 c2,655 441 1,493 851 1,743 June. 9,715 10,667 3,806 4,207 2,490 2,832 513 1,724 906 1,904 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—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 May. c 9,197 c 8,898 3,375 3,283 c2,698 c2,583 323 1,267 801 1,765 June. 9,190 9,497 3,541 3,678 2,550 2,664 299 1,368 800 1,787 Net change in credit outstanding : 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 1—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 —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 May............................. 493 664 225 388 100 72 118 226 50 -22 June............................. 525 1,170 265 529 -60 168 214 356 106 117 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-56. 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 60 INDUSTRIAL PRODUCTION: S.A. □ AUGUST 1971 MARKET GROUPINGS (1967 = 100) 1967 1970 1971 pro­ 1970 Grouping por­ avertion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total index................................... 100.00 106.7 107.5 107.5 107.5 106.5 103.7 102.6 104.6 105.3 105.7 105.5 106.2 107.0 106.9 Products, total................................. 62.21 106.0 106.9 107.1 106.5 105 103.6 102.6 104.2 104.6 105.0 104.5 105.5 105.8 105.9 Final products............................. 48.95 104.4 105.6 105.5 104.9 103.5 101.4 100.2 102.2 102.9 103.0 102.5 103.6 104.0 104.2 Consumer goods...................... 28.53 110.3 111.7 112.2 111.6 110.1 109.0 107.7 110.8 112.8 112.9 112.7 114.6 115.8 116.0 Equipment................................ 20.42 96.2 97.3 96.2 95.5 94.2 90 89.8 90.3 88.9 89.3 88.4 88.1 87.8 87.6 Intermediate products................. 13.26 111.9 111.9 113.5 112.2 111.4 111.9 111.6 112.1 110.9 112.5 112.0 112.4 112 112.5 Materials.......................................... 37.79 107.8 108.5 108.5 109.3 109.0 104.1 102.8 105.4 106.5 106.1 107.1 107.5 108.9 108.7 Consumer goods Durable consumer goods.................. 7.86 104.8 109.5 111.0 110.3 102.2 97.1 95.5 102.9 108.1 110.6 111.6 112.2 117.2 116.3 Automotive products................... 2.84 99.9 114.4 112.7 111.2 91.1 77.6 76.0 100.0 110.9 117.8 117.8 113.7 123.1 121.1 Autos........................................ 1.87 86.6 110.7 105.3 103.9 70.4 51.1 51. 88.6 104.1 112.8 112.2 103.2 108.3 107.9 Auto parts and allied goods... .97 125.6 122.4 126.7 125.4 130.9 128.7 122.3 122.2 124.1 127.4 128.6 133.9 151.4 146.6 Home goods...................................... 5.02 107.6 106.8 110.3 109.9 108.6 108.3 106.6 104.6 106.5 106.5 108.2 111.4 113.9 113.5 Appliances, TV, and radios........ 1.41 103.4 99.6 108.5 109.9 106.7 109.8 107.6 104.5 104.9 102.5 107.9 116.4 120.7 120.9 Appliances and A/C................ .92 122.1 122.7 128.5 129.0 123.3 128.8 127.1 120.6 122.6 117.6 124.9 126.0 132.1 131.0 TV and home audio................. .49 68.2 57.1 71.4 74.4 75.4 74.5 71.3 74.3 71. 74.0 76.1 98.6 99.4 102.0 Carpeting and furniture.............. 1.08 108.4 107.9 110.4 108.0 108.6 108.8 108.6 106.3 106.4 110.1 108.3 110.7 111.7 112.0 Misc. home goods....................... 2.53 109.7 111.1 111.0 110.9 109.7 107.3 105.3 104.1 107.5 107.5 108.1 109.0 111.1 110.1 Nondurable consumer goods............ 20.67 112.5 112.8 112.8 112.1 113.0 113.5 112.3 113.8 114.6 113.8 113.1 115.5 115.3 115.9 Clothing........................................ 4.32 101.2 102.6 101.5 100.9 100.5 100.0 96.3 99.1 99.7 97.3 96.9 101.0 103.0 Consumer staples......................... 16.34 115.4 115.5 115.8 115.2 116.4 117.2 116.6 117.7 118.5 118.1 117.4 119.4 118.6 119.5 Consumer foods and tobacco.. 8.37 110.6 111.2 109.3 109.9 110.6 111.9 112.5 112.8 114.0 112.6 111. 112.7 113.3 113.0 Nonfood staples....................... 7.98 120.4 120.1 122.8 120.7 122.6 122.9 120.9 122.9 123.2 123.9 123.2 126.4 124.2 126.2 Consumer chemical products 2.64 126.1 124.7 131.5 123.8 123.4 125.8 127.7 132.5 131. 131.8 131.6 134.0 133.2 133.2 Consumer paper products... 1.91 103.9 106.9 105.3 103.8 104.5 102.8 101.4 102.6 104.4 104.6 103.0 108.2 105.0 108.9 Consumer fuel and lighting. , 3.43 125.2 123.3 126.1 128.0 131.9 131.9 126.4 126.9 127.0 128.9 127.9 130.5 128.0 130.5 Residential utilities........... 2.25 131.3 129.0 134.0 135.9 140.7 141.2 132.2 131.9 132.0 135.2 133.2 136.4 135.1 136.9 Equipment Business equipment........................... 12.74 101.1 103.0 102.5 101.7 100.5 95.9 94.6 95.6 94.2 96.0 95.0 95.1 94.4 94.2 Industrial equipment................... 6.77 98.8 100.6 99.9 97.6 98.0 94.6 93.9 94.0 91.5 93.4 92.4 92.4 90.9 90.6 Building and mining equip... . 1.45 95.9 95.6 93.5 92.9 91.5 91.7 93.3 93.6 90.6 94.3 92.4 91.2 91.5 88.7 Manufacturing equipment.... 3.85 91.9 92.7 92.1 90.0 91.8 86.7 84.6 84.2 82.9 82.2 81.3 82.1 79.5 79.6 Power equipment..................... 1.47 119.9 126.6 126.7 122.6 120.7 118.2 118.7 119.8 115.0 121.7 121.5 120.5 120.2 121.3 Commercial, transit, farm eq*.. . 5.97 103.7 105.9 105.7 106.5 103.4 97.1 95.6 97.9 97.2 99.0 98.0 98.2 98.4 98.4 Commercial equipment............ 3.30 110.6 110.5 110.2 111.9 110.0 108.2 106.0 105.3 105.5 107.0 106.6 107.1 107.6 104.9 Transit equipment.................... 2.00 94.4 98.7 99.4 99.5 92.5 79.8 77.5 87.4 88.6 89.1 87.2 87.3 87.3 90.5 Farm equipment....................... .67 97.7 95.8 102.1 101.0 102.6 93.9 98.9 92.4 82.0 88.8 88.0 86.6 86.6 90.4 Defense and space equipment.......... 7.68 87.9 88.1 86.0 85.1 83.9 82.6 81.7 81.2 80.0 78.1 77.5 76.5 76.9 76.6 Military products......................... 5.15 89.7 90.5 87.2 87.0 85.8 84.5 83.7 82.9 82.6 80.4 79.8 79.1 79.5 79.7 Intermediate products Construction products..................... 5.93 110.6 110.0 111.8 111.7 110.0 111.5 110.4 112.5 lll.l 111.9 112.6 113.4 114.1 113.2 Misc. intermediate products........... 7.34 113.0 113.5 114.9 112.5 112.8 112.1 112.4 111.9 110.8 113.1 111.4 111.6 111.9 111.9 Materials Durable goods materials................... 20.91 103.4 105.8 105.4 106.4 105.1 96.2 93.6 99.4 101.5 101.6 101.9 102.2 104.8 103.3 Consumer durable parts.............. 4.75 96.5 104.1 104.3 107.1 101.7 80.4 76.9 95.8 99.4 101.4 103.2 102 105.1 106.0 Equipment parts.......................... 5.41 95.1 97.5 95.8 94.7 93.7 88.0 86.6 86.6 88.4 87.6 86.4 86.0 88.9 87.1 Durable materials nec................. 10.75 110.5 110.8 110.6 111.9 112.4 107.6 104.5 107.5 109.0 108.8 109.2 110.2 112.8 110.2 Nondurable goods materials............. 13.99 112.5 110.8 111.6 111.6 112.9 113.4 113.3 112.1 111.7 112.1 112.0 112.7 112.7 113.9 Textiles, paper, and chemicals... 8.58 113.0 113.1 113.3 112.1 113.2 112.6 112.6 111.8 111.2 111.7 111.9 113.2 113.5 115.6 Nondurable materials nec........... 5.41 111.5 109.1 109.0 110.9 112.3 114.7 114.7 112.7 112.5 112.7 112.3 111.9 111.4 111.3 Fuel and power, industrial............. 2.89 117.0 117.4 116.9 118.6 119.7 118.2 117.8 117.6 117.8 118.6 121.1 121.0 119.6 120.8 Supplementary groups Home goods and clothing............... 9.34 104.7 104.9 106.2 105.7 104.8 104.5 101.8 102.0 103.4 102.3 102.9 106.6 109.0 108.3 Containers........................................ 1.82 119.5 120.2 122.8 119.9 116.8 119.1 120.6 117.4 119.2 119.6 108.1 113.5 118.2 116.0 Gross Value of Products in Market Structure (In billions of 1963 dollars) Products, total................. 386. 391.8 394.4 391. 382.7 375.1 372.5 380.9 386.2 388.6 385.9 390.2 391.6 392.2 Final products............ 298.0 302.9 304.6 302.6 294.0 286.4 284.1 292.1 297.7 298.5 297.4 300.4 301.6 302.7 Consumer goods.... 202.6 206.3 208.7 206.6 200.9 197.0 195.7 203.3 209.1 209.5 209.6 212.6 213.8 214.6 Equipment............... 95.5 96.9 96.2 96.1 93.2 89.5 88.3 88.7 88.7 89.2 87.9 87.9 87.6 87.9 Intermediate products. 89.0 89.1 89.9 89.4 89.1 89.1 88.9 89.0 88.4 89.9 88.5 89.3 89.8 89.6 For Note see p. A-63. * Referred to as “nonindustrial equipment” in the article published in the July 1971 Bulletin, pp. 551-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1967 1970 1971 pro­ 1970 Grouping por­ aver­ tion age^ June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Manufacturing......... 88.55 105.2 106.3 106.9 105.5 104.8 101.4 100.2 102.4 103.3 103.9 103.2 104.4 105.5 105.2 Durable............... 52.33 101.5 103.4 103.7 103.5 100.7 95.7 93.8 97.3 98.1 98.6 98.3 99.1 100.4 99.8 Nondurable......... 36.22 110.6 110.6 111.6 108.6 110.7 109.7 109.6 110.0 110.9 111.7 110.4 112.1 112.9 113.3 Mining and utilities. 11.45 118.0 116.3 117.0 118.4 121.1 121.9 120.6 120.1 119 119.9 120.2 120.6 119.0 119.5 Mining................. 6.37 109.7 107.4 106.5 108. 110.9 112.4 113.7 112.1 111.1 110.1 111.4 110.4 108.6 108.6 Utilities................ 5.08 128.5 127 130.2 130.5 133.9 134.0 129.6 130.2 129.6 132.2 131.5 133.2 132.1 133.2 Durable manufactures Primary and fabricated metals. 12.55 108.1 109.3 109.6 111.8 108.9 104.2 101.2 105.1 106.8 106.0 105.8 108.6 111.5 108.3 Primary metals..................... 6.61 106.9 108.2 107.5 111.9 108. 102.5 98.4 104.3 108.1 105.5 106.6 108.7 114.3 108.4 Iron and steel, subtotal... 4.23 105 108.1 105.6 111.8 108.2 102.4 95.6 101.4 106.9 104.8 105.2 109.1 112.9 105.5 Fabricated metal products. . 5.94 109.4 110.7 112.2 111. 109.0 106.3 104.5 106.2 105.4 106.6 104.9 108.5 108.3 108.2 Machinery and allied goods............. 32.44 97.6 100.6 100.6 99.6 96.2 89.9 88.4 92.4 93.0 93.5 93.0 92.7 93.8 94.1 Machinery.................................... 17.39 100.5 101.4 103.6 101.5 100.4 96.5 94.9 94. 93.4 94.2 94.0 94.2 95.3 95.1 Nonelectrical machinery......... 9.17 99.6 100.4 102.0 100.4 99.8 95.6 93.2 92.4 90.1 92.3 91.1 91 90.9 90.7 Electrical machinery................ 8.22 101.4 102.7 105.6 102. 101.1 97.5 96.7 97.4 97.1 96.3 97.1 97.4 100.2 100.2 Transportation equipment.......... 9.29 90.3 98.7 96.3 96.1 87.5 73.8 71.7 86.8 91.1 92.6 91.3 89.5 90.9 92.2 Motor vehicles and parts........ 4.56 96.9 112.7 110. 111.3 94.6 68.6 65.4 98.5 107.7 113.0 112.2 108.4 110.2 112.7 Aerospace and misc. trans. eq. 4.73 83.9 85.3 82.5 81.4 81.0 78.8 78.0 75. 75.2 72.9 71.2 71 72.3 72.4 Instruments.................................. 2.07 110.8 112.6 110.8 110.5 108.9 107.3 106.5 104.9 106.5 105.3 105.5 106.7 108.0 107.2 Lumber, clay, and glass................. 4.44 106.3 104.9 106.4 106.6 105.6 105.3 105.0 107.5 106.9 109.8 110.8 113.0 110.8 110.8 Lumber and products............... 1.65 106.3 102.4 107.7 108.9 107.2 106.8 106.4 106.8 109.7 110.8 110.3 112 110.6 111.5 Clay, glass, and stone products. 2.79 106.3 106.1 105.9 105.1 104.8 104.5 104.1 107.9 105.3 109.2 111.1 113.3 111.0 110.3 Furniture and miscellaneous----- 2.90 108.8 108.7 109.9 110.0 109.4 108.7 105.7 104.9 105.2 107.1 105.6 109.5 109.9 110.0 Furniture and fixtures........... 1.38 99.4 99.7 100.8 100.1 99.3 100.1 96.5 95.5 94.2 96.0 95.0 98.7 97.6 99.7 Miscellaneous manufactures. 1.52 117.3 117.1 118.3 119.1 118.5 116.7 114.0 113.4 115.2 117.2 115.4 119.3 121.2 119.4 Nondurable manufactures Textiles, apparel, and leather. 6.90 100.2 99.7 101.5 99.3 99.1 98.7 96.0 97.1 98.6 98.0 97.3 99.8 101.8 102.1 Textile mill products.......... 2.69 106.3 107.2 107.3 105.6 105.2 104.1 102.8 103.3 103.1 105.4 105.3 106.3 107.5 108.5 Apparel products............... 3.33 97.8 98.7 99.3 97.0 96.8 96.9 93.4 94.9 97.4 94.5 94.0 97.3 100.3 Leather and products........ 90.8 91.9 92.5 89.5 90.2 89.6 85.0 86.7 89.5 89.0 85.4 89.9 89.8 88.4 Pa P p a e p r e a r n a d n p d r i p n r t o in d g u . c .. t . s .. ...... 3 7 . . 1 9 8 2 1 1 0 13 7 . . 3 8 1 11 0 1 8 . . 5 5 1 1 1 15 0 . . 5 0 1 1 0 12 7 . . 7 9 1 1 0 0 6 9. . 8 7 1 1 0 11 6. . 1 9 1 1 0 1 6 3 . .3 1 11 0 0 5 . . 6 0 1 11 0 6 7 . . 9 1 1 1 0 1 8 6 . . 1 0 1 1 0 1 4 1 . .0 6 1 1 0 14 6 . . 4 9 1 1 0 15 6 . . 1 9 1 1 0 16 7 . . 1 5 Printing and publishing. 4.74 104.1 106.5 106.1 104.6 104.5 102.3 101.9 101.2 100.5 102.8 100.2 101.8 101.4 101.9 Chemicals, petroleum, and rubber. 11.92 118.2 118.7 119.5 117.8 119.1 117.2 117.8 118.9 118.2 120.9 120.5 122.4 122. 123.8 Chemicals and products............ 1. 120.2 121.1 122.5 119.4 121.5 120.3 119.7 121.2 119.3 121.7 121.0 123.4 123.4 124.0 Petroleum products................... 1.80 112.6 110.7 111.0 112.1 112.9 113.2 116.9 118.1 117.2 117.1 116.3 115. 112.7 115.2 Rubber and plastics products... 2.26 115.7 117.2 116.0 117.5 115.9 110.0 111.4 111.8 115.5 120.6 122.7 124.5 126.5 130.2 Foods and tobacco. . . 9.48 110.8 110.6 110.6 104.4 112.0 111.7 111.9 112.5 113.9 113.1 112.2 112.9 113.7 112.7 Foods.................... 8.81 111.7 111.7 111.2 104.7 113.1 112.3 112.7 113.5 114.6 114.1 113 114.1 114.7 114. I Tobacco products. .67 100.0 97.3 102.6 100.4 100.5 104.4 102.3 99.5 106.6 100.1 90.3 96.9 100.3 Mining Metal, stone, and earth minerals. 1.26 112.0 108.4 110.4 110.4 110.0 113.0 118.6 116.4 113.6 113.6 111.6 106.5 104.7 102.4 Metal mining........................... .51 131.3 117.5 122.3 129.1 130.5 134.3 148.5 144.7 140.1 139.0 135.1 124.7 122. 116.7 Stone and earth minerals........ .75 98.8 100.6 102.4 97.6 96.2 98.6 98.4 97.3 95.6 96.3 95.6 94.2 92.4 92.7 Co C al o , a o l i . l . , . .. a . n ... d .. g ... a .. s .. . . . . . . . . . . . . . . . . . . . . . . . 5. . 1 6 1 9 1 1 0 05 9 . . 8 2 1 1 0 02 7 . . 3 3 1 1 0 0 5 2. . 3 5 1 1 0 0 8 8 . .8 6 1 10 1 9 1 . . 7 3 1 1 1 08 2 . . 7 3 1 1 1 0 2 7. . 9 6 1 10 11 3. . 6 0 1 1 1 1 0 2 . .3 6 1 1 0 0 9 8. . 8 3 1 1 1 1 1 6. .4 2 1 1 1 1 1 5 . .5 4 1 1 0 1 9 0 . . 6 2 1 1 1 1 0 1 . . 1 0 Oil and gas extraction. 4.42 109.7 108.1 106.2 108.7 111.5 112.9 113.4 112.3 110.3 109.3 110.6 114.3 112.7 1J3.0 Utilities Electric. 3.91 130.8 129.7 132.8 133.2 137.5 137.6 131.9 132.5 131.5 134.9 133.6 135.5 133.8 135.0 Gas___ 1.17 121.0 121.0 121.2 121.4 121.7 121.9 122.1 122.4 123.0 123.6 124.3 For Note see p. A-63. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 62 INDUSTRIAL PRODUCTION: N.S.A. □ AUGUST 1971 MARKET GROUPINGS (1967 = 100) 1967 1970 1971 pro­ 1970 Grouping por­ aver­ tion age* June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Total index....................................... 100.00 106.7 110.3 103.4 107.1 109.6 106.5 103.1 102.0 103.2 106.1 106.0 106.5 107.2 109.2 Products, total..................................... 62.21 106.0 109.9 104.2 107.0 109.8 107.0 102.7 100.7 101.8 104.7 104.5 105.0 105.0 108.4 Final products................................. 48.95 104.4 108.5 102.1 104.5 107.8 104.5 100.2 98.9 101.0 103.4 103.0 102.9 102.8 106.5 Consumer goods.......................... 28.53 110.3 115.3 107.7 112.4 116.9 113.6 107.2 105.4 110.3 113.2 112.9 113.6 113.6 118.7 Equipment.................................... 20.42 96.2 99.1 94.3 93.5 95.0 91.9 90.4 89.8 88.1 89.6 89.1 88.0 87.6 89.4 Intermediate products..................... 13.26 111.9 115.1 111.8 116.1 117.0 116.0 111.8 107.3 104.7 109.5 110.2 112.6 113.2 115.6 Materials.............................................. 37.79 107.8 110.9 102.2 107.3 109.2 105.8 103.7 104.1 105.4 108.3 108.4 109.0 110.7 110.5 Consumer goods Durable consumer goods....................... 7.86 104.8 114.9 96.5 96.7 107.3 103.7 98.7 100.8 107.3 113.8 114.8 114.7 117.3 119.9 Automotive products....................... 2.84 99.9 125.2 87.2 75.2 94.7 83.7 80.1 100.0 115.6 125.1 125.3 121.9 127.2 130.4 Autos............................................ 1.87 86.6 125.7 66.4 46.3 72.7 58.7 58.2 92.4 113.5 124.1 123.4 112.5 120.2 120.8 Auto parts and allied goods........ .97 125.6 124.2 127.1 130.4 136.9 131.7 122.1 114.6 119.6 127.0 128.9 139.9 140.8 148.8 Home goods.......................................... 5.02 107.6 109.1 101.8 108.9 114.5 115.0 109.2 101.3 102.6 107.4 108.8 110.7 111.7 113.9 Appliances, TV, and radios............ 1.41 103.4 101.6 98.2 99.8 113.2 123.2 110.0 90.9 102.5 108.9 113.6 116.1 117.1 117.3 Appliances and A/C.................... .92 122.1 129.2 124.3 112.1 127.7 138.3 122.3 100.3 120.1 124.7 133.6 133.1 132.2 136.2 TV and home audio..................... .49 68.2 49.8 49.4 76.6 86.0 94.9 86.3 73.2 69.5 79.3 76.2 84.3 88.8 81.9 Carpeting and furniture.................. 1.08 108.4 106.9 94.2 108.2 111.8 110.0 111.5 108.6 108.0 114.7 111.4 111.1 108.6 111.0 Misc home goods............................ 2.53 109.7 114.3 106.9 114.3 116.4 112.5 107.8 103.9 100.4 103.4 105.1 107.5 110.0 113.3 Nondurable consumer goods................ 20.67 112.5 115.5 112.0 118.4 120.5 117.4 110.4 107.1 111.4 113.0 112.2 113.2 112.2 118.3 4.32 101.2 106.2 92.8 106.3 103.3 104.8 95.8 85.5 95.0 102.0 102.5 102.6 101.8 Consumer staples............................. 16.34 115.4 117.9 117.1 121.6 125.0 120.7 114.3 112.8 115.7 115.9 114.8 116.0 114.9 121.6 Consumer foods and tobacco__ 8.37 110.6 114.4 109.7 115.5 120.5 118.4 111.3 106.6 108.1 108.5 108.7 110.0 110.9 115.6 Nonfood staples........................... 7.98 120.4 121.5 124.8 127.9 129.7 123.1 117.5 119.3 123.7 123.7 121.2 122.3 119.1 128.0 Consumer chemical products.. 2.64 126.1 135.4 130.2 129.6 134.3 132.8 127.6 123.2 123.9 125.7 125.7 131.2 132.4 144.6 Consumer paper products....... 1.91 103.9 107.2 107.9 111.4 111.0 106.2 100.7 97.4 99.6 101.8 100.1 107.1 102.0 109.2 Consumer fuel and lighting. . . 3.43 125.2 118.7 112.8 115.1 117.0 113.6 115.4 120.3 137.0 134.3 129.6 123.8 118.4 125.7 Residential utilities............... 2.25 131.3 121.5 139.0 146.6 146.6 131.0 121.2 132.7 146.7 143.0 137.1 129.2 122.3 129.0 Equipment Business equipment............................... 12.74 101.1 105.9 100.0 99.1 101.6 97.5 95.3 94.3 92.7 96.6 96.0 95.3 94.2 97.3 Industrial equipment....................... 6.77 98.8 102.6 98.3 96.3 98.9 96.6 95.0 93.2 90.8 93.9 92.8 92.4 90.3 92.3 Building and mining equip.......... 1.45 95.9 98.7 91.5 87.2 93.1 93.2 97.0 95.3 89.8 93.3 90.3 91.7 90.9 91.5 Manufacturing equipment.......... 3.85 91.9 94.3 90.1 89.7 91.8 88.0 85.6 83.5 81.9 84.3 82.9 82.0 79.1 81.0 Power equipment......................... 1.47 119.9 128.0 126.7 122.7 123.2 122.5 117.4 116.3 115.1 119.6 120.9 120.3 119.2 122.6 Commercial, transit, farm eq.*. ... 5.97 103.7 109.7 102.0 102.3 104.6 98.4 95.6 95.6 94.8 99.7 99.7 98.5 98.6 102.9 Commercial equipment............... 3.30 110.6 115.5 113.0 112.7 113.5 109.2 106.3 103.4 101.8 105.3 104.7 105.3 106.0 109.6 Transit equipment....................... 2.00 94.4 102.3 90.1 91.1 90.5 81.5 79.6 85.2 87.1 91.5 91.0 88.9 89.0 93.8 Farm equipment........................... .67 97.7 103.0 83.5 84.6 102.4 95.5 90.1 88.0 83.4 96.7 100.9 93.7 90.9 97.2 Defense and space equipment.............. 7.68 87.9 87.9 84.9 84.2 84.0 82.7 82.4 82.3 80.5 78.1 77.7 76.0 76.7 76.4 Military products............................. 5.15 89.7 90.6 87.2 87.0 85.8 84.5 83.7 82.9 82.8 80.3 80.1 78.9 79.7 79.8 Intermediate products Construction products......................... 5.93 110.6 114.9 108.9 114.3 114.5 115.2 110.1 105.4 103.3 109.9 111.6 115.8 116.6 118.3 Misc. intermediate products............... 7.34 113.0 115.2 114.2 117.5 119.0 116.6 113.1 108.8 105.8 109.1 109.1 110.0 110.4 113.4 Materials Durable goods materials...................... 20.91 103.4 109.3 98.3 103.0 105.3 97.2 94.0 98.0 99.8 103.2 104.2 104.1 107.2 106.6 4.75 96.5 103.8 93.2 98.1 101.1 82.3 80.3 100.4 102.9 104.6 104.5 102.0 106.4 105.7 Equipment parts.............................. 5.41 95.1 100.0 90.0 92.4 94.6 87.7 85.8 86.7 87.8 88.9 89.0 87.0 89.4 89.4 Durable materials nec..................... 10.75 110.5 116.4 104.7 110.4 112.5 108.6 104.2 102.7 104.4 109.8 111.8 113.7 116.6 115.7 Nondurable goods materials................. 13.99 112.5 112.0 106.5 111.4 113.0 116.1 114.9 110.0 110.9 113.3 112.0 113.7 114.2 114.4 Textiles, paper, and chemicals........ 8.58 113.0 113.6 106.4 111.2 113.1 115.0 113.8 108.3 110.4 114.3 112.8 115.6 115.8 116.1 Nondurable materials nec............... 5.41 111.5 109.5 106.7 111.6 112.7 117.8 116.6 112.7 111.6 111.6 110.8 110.8 111.7 111.7 Fuel and power, industrial................. 2.89 117.0 116.6 109.5 119.0 118.7 118.6 119.0 119.5 119.9 120.5 121.9 121.4 119.5 119.7 Supplementary groups 9.34 104.7 107.8 97.6 107.7 109.3 110.3 103.0 94.0 99.1 104.9 105.9 106.9 107.1 110.2 Containers............................................ 1.82 119.5 123.9 117.4 124.0 121.9 125.9 119.5 108.6 112.6 119.2 108.1 113.8 120.0 119.6 For Note see p. A-63. * Referred to as “Nonindustrial equipment” in the article published in the July 1971 Bulletin, pp. 551-76. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967 = 100) 1967 1970 1971 pro­ 1970 Grouping por­ aver­ tion age* June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Manufacturing, total............................ 88.55 105.2 109.5 101.6 104.9 107.6 104.7 101.2 99.7 100.9 104.3 104.4 105.0 105.7 107.5 Durable............................................ 52.33 101.5 106.6 91.4 99.3 102.2 97.6 94.6 95.9 96.8 100.2 100.6 100.4 101.5 102.3 Nondurable...................................... 36.22 110.6 113.7 107.6 113.1 115.3 115.0 110.7 105.2 106.8 110.2 109.8 111.7 111.7 115.2 Mining and utilities............................. 11.45 118.0 116.3 118.2 123.6 124.1 120.7 117.5 119.5 120.6 119.7 119.4 117.9 117.0 119.3 Mining.............................................. 6.37 109.7 109.2 104.7 110.7 111.6 113.4 113.2 112.0 108.7 108.6 109.7 110.4 110.9 110.4 Utilities............................................ 5.08 128.5 125.3 135.1 139.9 139.8 129.8 123.0 128.9 135.6 133.7 131.5 127.3 124.6 130.5 Durable manufactures Primary and fabricated metals............ 12.55 108.1 112.7 100.8 107.1 108.1 104.4 101.3 102.2 105.7 110.0 111.0 112.0 114.5 111.1 Primary metals................................. 6.61 106.9 113.6 96.2 105.4 105.4 100.7 97.1 99.0 106.6 111.6 115.2 115.8 119.8 112.8 Iron and steel, subtotal............... 4.23 105.3 112.6 96.4 105.4 103.1 98.7 94.2 96.4 105.2 110.7 114.3 117.1 119.1 109.2 Fabricated metal products.............. 5.94 109.4 111.7 106.9 109.0 111.1 108.6 106.0 105.8 104.7 108.2 106.3 107.7 108.6 109.2 Machinery and allied goods................. 32.44 97.6 103.5 94.6 93.6 97.8 91.9 89.3 91.9 92.8 95.1 94.9 93.4 94.4 96.2 Machinery........................................ 17.39 100.5 103.8 98.3 98.4 102.7 98.8 95.4 92.6 92.4 96.0 95.8 94.9 94.8 96.7 Nonelectrical machinery............. 9.17 99.6 103.2 98.6 96.7 100.5 95.8 93.3 90.4 88.9 94.3 93.6 92.5 91.4 93.2 Electrical machinery.................... 8 22 101.4 104.5 98.0 100.2 105.2 102.2 97.7 95.0 96.3 97.8 98.3 97.5 98.6 100.7 Transportation equipment.............. 9.29 90.3 103.2 85.1 80.9 87.7 75.6 73.8 88.9 93.1 95.4 94.6 91.6 94.2 96.1 Motor vehicles and parts............ 4.56 96.9 121.4 89.4 81.6 94.2 71.8 69.5 102.0 112.9 118.9 117.7 112.0 116.9 120.5 Aerospace and misc. trans. eq. .. 4.73 83.9 85.6 81.0 80.2 81.5 79.2 77.9 76.3 74.1 72.8 72.3 72.0 72.4 72.6 Instruments...................................... 2.07 110.8 115.0 110.8 112.8 113.3 110.4 107.0 104.8 103.4 102.2 103.7 103.4 106.9 109.4 Lumber, clay, and glass....................... 4.44 106.3 110.1 105.8 112.0 110.8 110.5 105.0 100.9 97.7 104.5 108.7 113.2 113.0 116.4 Lumber and products..................... 1.65 106.3 108.4 104.7 113.3 112.5 110.8 104.1 97.0 98.8 110.6 112.1 114.5 113.1 118.1 Clay, glass, and stone products.... 2.79 106.3 111.1 106.5 111.2 109.8 110.4 105.6 103.2 97.0 100.9 106.7 112.5 113.0 115.3 Furniture and miscellaneous................. 2.90 108.8 109.8 100.7 110.7 113.2 112.0 109.5 105.7 102.3 107.4 106.6 108.7 107.6 111.0 Furniture and fixtures..................... 1.38 99.4 98.1 87.6 98.5 100.3 100.4 99.4 98.4 96.2 100.7 98.5 98.6 95.8 98.1 Miscellaneous manufactures........... 1.52 117.3 120.4 112.6 121.8 124.9 122.5 118.8 112.3 107.9 113.6 114.0 117.9 118.4 122.7 Nondurable manufactures Textiles, apparel and leather............... 6.90 100.2 103.3 90.7 103.7 101.6 102.9 96.5 87.3 95.7 101.8 101.7 101.6 101.6 102.9 Textile mill products....................... 2.69 106.3 108.0 95.8 109.5 107.6 107.6 103.5 93.5 102.0 107.6 108.2 108.5 110.4 109.2 Apparel products............................. 3.33 97.8 102.4 89.4 101.5 99.6 101.5 93.7 83.5 92.3 99.4 99.4 99.3 98.0 Leather and products...................... .88 90.8 92.5 80.2 94.4 90.6 93.8 85.6 82.6 88.8 92.7 90.4 88.8 87.9 ’ 88.9 Paper and printing............................... 7.92 107.8 111.1 106.7 111.4 111.8 111.8 108.0 99.5 101.3 105.4 103.2 107.4 106.9 108.3 Paper and products......................... 3.18 113.3 114.6 105.7 112.5 109.5 117.7 114.2 102.3 115.5 118.9 113.6 117.8 116.3 114.8 Printing and publishing................... 4.74 104.1 108.7 107.3 110.6 113.3 107.8 103.8 97.6 91.7 96.4 96.2 100.4 100.5 104.0 Chemicals, petroleum, and rubber....... 11.92 118.2 121.9 117.1 118.4 122.4 120.4 118.7 117.1 114.7 119.4 119.7 122.2 121.4 127.0 Chemicals and products.................. 7.86 120.2 125.2 119.9 120.4 124.7 122.7 120.2 118.7 115.1 118.9 119.5 124.3 125.0 128.2 Petroleum products......................... 1.80 112.6 114.7 115.0 117.0 118.1 115.2 116.1 116.3 112.4 113.5 112.0 110.9 111.7 119.3 Rubber and plastics products......... 2.26 115.7 115.9 108.9 112.8 118.0 116.5 115.4 112.0 115.3 125.8 126.4 124.0 116.8 128.8 Foods and tobacco............................... 9.48 110.8 113.1 108.7 114.7 119.3 119.7 113.1 107.9 109.5 108.8 108.8 109.6 110.6 115.0 Foods................................................ 8.81 111.7 113.8 110.0 115.2 120.3 120.3 113.9 109.8 109.7 109.2 110.2 110.9 111.5 116.0 Tobacco products............................ .67 100.0 104.0 91.5 108.0 106.7 112.4 103.1 83.5 106.4 103.0 90.5 92.7 99.3 Mining Metal, stone, and earth minerals......... 1.26 112.0 121.0 118.0 118.9 117.0 117.2 111.0 105.5 97.7 98.7 101.0 107.2 117.0 115.8 Metal mining................................... .51 131.3 117.5 139.7 144.0 141.2 135.2 124.7 116.9 115.0 118.3 117.9 126.1 145.9 146.9 Stone and earth minerals................ .75 98.8 102.6 103.2 101.9 100.5 104.9 101.7 97.7 86.0 85.3 89.5 94.4 97.4 94.6 Coal, oil, and gas................................. 5.11 109.2 106.3 101.4 108.7 110.3 112.5 113.8 113.6 111.4 111.0 111.8 111.2 109.4 109.0 Coal.................................................. .69 105.8 102.9 78.8 115.9 112.6 116.2 110.3 103.0 111.1 109.1 114.7 117.6 112.4 111.7 Oil and gas extraction..................... 4.42 109.7 106.8 105.0 107.6 109.9 111.9 114.4 115.2 111.4 111.3 111.3 114.1 112.4 111.8 Utilities Electric................................................. 3.91 130.8 126.6 139.3 145.5 145.2 132.2 123.2 130.8 139.3 136.7 133.6 128.0 124.2 131.6 Gas........................................................ 1.17 121.0 121.0 121.2 121.4 121.7 121.9 122.1 122.4 123.0 123.6 124.3 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 64 BUSINESS ACTIVITY; CONSTRUCTION □ AUGUST 1971 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 Market du I s n t ­ ry u p t a C i c li a i z t ­ y a­ Con­ N ri o c n u a l- g - Period Total Total Final C p o P r n o r ­ o du d c u t c s ts m In ed te ia r­ te M ria a l t s e­ f M a i c a n t n g u u r­ ­ i ( n 1 5 t 1 i 9 9 m 0 o 5 = 0 n f 7 ) g - . t s r c t t a r i o o c u n t n c s ­ ­ T m p t e o u e l m o t r n a a y t ­ l l — ­ i p m E lo m en y ­ t ­ P ro a l y ls ­ T s r a e o l t t a e a i s l l 3 s C um on e ­ r m W c s o o a h m d l o e i l t ­ e y ­ Total sumerEquip­ prod­ goods ment ucts 1957-59=100 1952.... 91.3 93.0 106.1 84.5 79 79.5 88.6 1953.... 94.2 95.6 111.6 93.6 83 80.1 87.4 1954.... 51.9 51.8 50.8 53.3 47.9 55.1 52.0 5i.5 83.5 93.3 101.8 85.4 82 80.5 87.6 1955.. 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 96.5 105.5 94.8 89 80.2 87.8 1956.. 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 87.7 99.8 106.7 100.2 92 81.4 90.7 1957.. 61.9 61.1 59.9 63.2 55.9 65.3 63.1 61.2 83.6 100.7 104.7 101.4 97 84.3 93.3 1958.. 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 74.0 97.8 95.2 93.5 98 86.6 94.6 1959.. 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.5 101.5 100.1 105.1 105 87.3 94.8 1960.. 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.6 103.3 99.9 106.7 106 88.7 94.9 1961.. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 78.5 102.9 95.9 105.4 107 89.6 94.5 1962.. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 82.1 105.9 99.1 113.8 115 90.6 94.8 1963.. 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.3 86.1 108.0 99.7 117.9 120 91.7 94.5 1964.. 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.7 89.4 111.1 101.5 124.3 128 92.9 94.7 1965.. 89.2 88.1 86.8 93.0 78.7 93.0 91.0 89.1 88.5 93.2 115.8 106.7 136.6 138 94.5 96.6 1966. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 90.5 94.8 121.8 113.5 151.7 148 97.2 99.8 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 85.3 100.0 125.4 113.6 155.1 153 100.0 100.0 1968. 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 84.6 113.2 129.3 115.2 167.9 165 104.2 102.5 1969. 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 83.7 123.7 133.8 117.3 180.8 171 109.8 106.5 1970. 106.7 106.0 104.4 110.3 96.1 111.9 107.8 105.2 76.6 134.5 111.5 177.4 178 116.3 110.4 1970—June.. 107.6 106.9 105.5 111.7 97.1 112.0 108.8 106.6 578.0 120.0 134.5 112.3 178.6 178 116.3 110.3 July.. 107.5 107.1 105.5 112.2 96.2 113.5 108.5 106.9 116.0 134.4 111.9 178.1 180 116.7 110.9 Aug.. 107.5 106.5 104.9 111.6 95.5 112.2 109.3 105.5 \ 76.2 135.0 134.1 110.9 179.0 180 116.9 110.5 Sept.. 106.5 105.2 103.5 110.1 94.2 111.4 109.0 104.8 J 118.0 134.3 111.1 178.4 181 117.5 111.0 Oct... 103.7 103.6 101.4 109.0 90.8 111.9 104.1 101.4 j 115.0 133.6 106.4 168.8 179 118.1 111.0 Nov.. 102.6 102.6 100.2 107.7 89.8 111.6 102.8 100.2 [ 72.4 130.0 133.4 105.5 168.5 177 118.5 110.9 Dec... 104.6 104.2 102.2 110.8 90.3 112.1 105.4 102.4 J 132.0 133.9 108.1 176.8 179 119.1 111.0 1971—Jan... 105.3 104.6 102.9 112.8 88.9 110.9 106.5 103.3 I 117.0 134.5 107.9 179.1 182 119.2 111.8 Feb... 105.7 105.0 103.0 112.9 89.3 112.5 106.8 103.9 r73.1 126.0 134.4 107.5 177.6 185 119.4 112.8 Mar.. 105.5 104.5 102.5 112.7 88.4 112.0 107.1 103.2 J 141.0 134.5 107.1 178.8 189 119.8 113.0 Apr... 106.2 105.5 103.6 114.6 88.1 112.4 107.5 104.4 1 161.0 134.7 107.4 178.7 192 120.2 113.3 May.. 107.0 105.8 104.0 115.8 87.8 112.9 108.9 105.5 } v13.2 141.0 135.0 *•107.9 *•181.0 '191 120.8 113.8 June.. 106.9 105.9 104.2 116.0 87.6 112.5 108.7 105.2 1 147.0 rl 34.5 *•107.3 *•182.4 *•194 121.5 114.3 July27. 106.0 105.5 104.0 115.9 87.1 110.6 107.1 104.6 134.1 106.4 178.2 192 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Economics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. value of total construction contracts, including residential, nonresidential, 5 Figure is for second quarter 1970. and heavy engineering; does not include data for Alaska and Hawaii. Employment and payrolls: Based on Bureau of Labor Statistics data; Note.—All series: Data are seasonally adjusted unless otherwise noted. includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1970 1971 Type of ownership and 1968 1969 type of construction June July Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June Total construction 1......................... 61,732 67,425 6,552 6,177 6,229 5,398 5,453 5,144 4,974 4,383 4,993 6,386 7,743 7,555 8,076 By type of ownership: Public........................................ 19,597 22,656 2,814 2,312 2,078 1,869 2,023 1,937 1,464 1,578 1,722 2,074 2,065 2,795 Private 1.................................... 42,135 44,769 3,738 3,865 4,151 3,529 3,430 3,208 3,286 2,919 3,415 4,663 5,669 5,489 5,281 By type of construction: Residential building 1.............. 24,838 25,219 2,347 2,347 2,349 2,176 2,301 1,947 2,045 1,631 1,819 2,729 3,168 3,310 Nonresidential building........... 22,512 25,667 2,469 2,469 2,331 1,943 1,862 1,701 1,693 1,711 1,654 2,199 2,080 2,263 Nonbuilding............................. 14,382 16,539 1,361 1,361 1,549 1,278 1,289 1,497 1,235 1,041 1,520 1,458 2,495 Private housing units authorized... 1,330 1,299 1,306 1,275 1,326 1,371 1,521 1,487 1,768 1,635 rl ,563 1,627 1,638 1,927 1,817 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total N f r a e o r s m n i­ - Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v t & e io lo n p­ Other 2 dential Total Indus­ Com­ b O u t i h l e d r ­ Other ment 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 1968._____ 84,692 56,996 28,823 28,173 5,594 8,333 4,873 9,373 27,696 824 9,295 2,046 15,531 196 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—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.. 92,336 64,476 30,519 33.957 5,983 10,210 5,572 12,192 27,860 866 Nov. 92,927 64,585 31,827 32,758 5,752 9,278 5,575 12,153 28,342 701 Dec.. 99,194 66,984 33,355 33,629 5,358 10,372 5.739 12,160 32,210 768 1971—Jan.. 99,749 69,651 34,170 35,481 5,904 11,558 6,083 11,936 30,098 1,016 Feb.. 102,024 70,311 35,114 35,197 5,596 11,846 5.740 12,015 31,713 924 Mar. 102,159 72,116 36.842 35,274 5,244 12,169 5,637 12,224 30,043 882 Apr.’ 103.852 74,211 38,057 36,154 5,472 12.214 6,098 12,370 29,641 882 May’ 103.852 74,207 38,882 35,325 5,182 12.214 5,920 12,009 r29,645 875 June, 104,284 74,440 38.843 35,597 4,558 12,295 6,708 12,036 29,844 822 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 0 Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship­ Region Type of structure ments (N.S.A.) Total N e o a r s t t h­ C N e o n r t t r h al South West fam 1- ily 2 fa - m to i l 4 y - f m 5 a - m o r o i e l r y - Total Private Public Total FHA VA 1962......................... 1,463 264 290 531 378 991 4'71 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 r288 r237 r51 413 1970......................... 1,429 217 291 611 310 811 84.7 534 1,467 1,434 33 479 418 61 401 1970—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............... 1,959 257 442 803 457 1,048 121 790 169 168 1 40 33 7 36 Apr.r............ 1,912 233 457 814 408 1,098 109 705 204 201 3 53 45 8 43 May r............ 1,959 271 351 854 482 1,120 109 730 202 197 5 49 41 8 41 June.............. 1,982 233 393 865 491 1,165 122 695 195 192 3 55 46 9 47 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 66 EMPLOYMENT □ AUGUST 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 u tu l l t a n i t o o io n n n a - l lab N or o t f i o n r ce T l f a o o b r t c o a e r l Employed2 Une m ra m e t p n e t l 1 oy­ (N.S.A.) (N.S.A.) (S.A.) Total Unem­ (per cent; Total In c n u o lt n u a r g al r i- In ployed S.A.) industries agriculture 1965.......................... 129,236 52,058 77,178 74,455 71,088 66,726 4,361 3,366 4.5 1966........................... 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 19673......................... 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 1968........................... 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 1969........................... 137,841 53,602 84,239 80,733 77,902 74,296 3,606 2,831 3.5 1970........................... 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1970—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 Apr................. 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 June............... 142,482 54,698 85,948 83,132 78,443 75,149 3,294 4,689 5.6 July................ 142,685 53,877 86,626 83,829 78,941 75,574 3,367 4,888 5.8 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 n r 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 60,815 18,062 632 3,186 4,036 12,716 3,023 9,087 10,074 1966......................................................... 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 1967......................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 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—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............................................... 70,735 18,690 623 3,289 4,491 15,158 3,764 11,800 12,920 May.............................................. 70,885 18,738 622 3,264 4,494 15,211 3,779 11,819 12,958 JuneP............................................ 70,647 18,634 621 3,231 4,484 15,171 3,796 11,778 12,932 July*............................................ 70,456 18,502 601 3,195 4,474 15,193 3,790 11,750 12,951 NOT SEASONALLY ADJUSTED 1970—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.............................................. 70,391 18,525 617 3,154 4,455 15,017 3,749 11,800 13,074 May.............................................. 70,834 18,601 622 3,257 4,485 15,119 3,771 11,890 13,089 June*............................................ 71,399 18,778 636 3,406 4,533 15,239 3,826 11,966 13,015 July*............................................ 70,404 18,382 617 3,444 4,528 15,183 3,854 11,938 12,458 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

AUGUST 1971 o EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted1 Industry group 1970 1971 1970 1971 July May June* July* July May June* July* 14,090 13,588 13,520 13,408 13,958 13,474 13,637 13,244 Durable goods................................................................. 8,082 7,670 7,632 7,564 7,993 7,650 7,722 7,441 Ordnance and accessories...................................... 131 101 100 99 130 100 100 99 Lumber and wood products.................................. 491 497 496 497 508 495 516 515 Furniture and fixtures............................................ 373 376 378 379 366 371 379 371 Stone, clay, and glass products............................. 499 499 497 490 513 499 510 504 Primary metal industries........................................ 1,033 1,002 989 955 1,044 1,012 1,012 966 Fabricated metal products.................................... 1,058 1,024 1,019 1,020 1,039 1,018 1,031 1,002 Machinery............................................................... 1,316 1,156 1,146 1,136 1,309 1,158 1,157 1,129 Electrical equipment and supplies......................... 1,289 1,187 1,181 1,172 1,264 1,170 1,176 1,149 Transportation equipment..................................... 1,290 1,255 1,253 1,253 1,228 1,260 1,264 1,152 Instruments and related products......................... 278 257 257 257 276 255 258 255 Miscellaneous manufacturing industries............... 324 316 316 306 316 312 319 299 Nondurable goods.......................................................... 6,008 5,918 5,888 5,844 5,965 5,824 5,915 5,803 Food and kindred products................................... 1,203 1,194 1,186 1,167 1,231 1,130 1,176 1,194 Tobacco manufactures........................................... 67 64 62 59 59 54 54 51 Textile-mill products.............................................. 839 830 825 823 831 826 836 815 Apparel and related products............................... 1,223 1,219 1,204 1,198 1,177 1,216 1,218 1,154 Paper and allied products...................................... 544 522 523 512 545 517 530 514 Printing, publishing, and allied industries............ 680 666 665 669 677 664 666 666 Chemicals and allied products.............................. 605 595 593 594 608 596 598 597 Petroleum refining and related industries............. 118 117 117 116 122 117 120 120 Rubber and misc. plastic products......................... 444 437 438 444 435 433 440 435 Leather and leather products................................. 285 274 275 262 280 271 277 257 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 July May June* July* July May June* July* July May June* July* Total.................................................................. 40.1 40.0 40.0 39.9 134.46 142.40 143.51 141.33 3.37 3.56 3.57 3.56 Durable goods..................................................... 40.7 40.5 40.6 40.4 143.87 153.50 155.04 151.60 3.57 3.79 3 80 3.79 Ordnance and accessories.......................... 40.3 41.5 41.7 42.0 143.28 158.53 160.51 161.44 3.60 3.82 3.84 3.89 Lumber and wood products...................... 39.8 39.8 40.2 39.5 118.31 125.42 129.43 124.11 2.98 3.12 3.18 3.15 Furniture and fixtures................................ 39.3 39.9 40.0 39.9 107.86 113.76 116.18 113.87 2.78 2.88 2.89 2.89 Stone, clay, and glass products................. 41.2 41.5 41.8 42.0 141.25 151.37 154.87 155.77 3.42 3.63 3.67 3.70 Primary metal industries............................ 40.7 40.9 40.9 40.8 159.96 170.98 173.86 172.16 3.94 4.16 4.22 4.23 Fabricated metal products......................... 41.3 40.5 40.7 40.6 144.79 151.84 153.38 149.95 3.54 3.74 3.75 3.73 41.1 40.4 40.7 40.8 153.06 160.39 162.79 160.39 3.77 3.97 3.99 3.98 Electrical equipment and supplies............. 40.4 39.9 40.0 40.1 132.14 139.30 140.35 138.25 3.32 3.50 3.50 3.50 Transportation equipment......................... 41.2 41.1 41.5 40.2 166.06 183.34 184.26 174.68 4.08 4.45 4.44 4.40 Instruments and related products............. 40.3 39.9 39.7 40.2 132.87 139.70 139.70 140.10 3.33 3.51 3.51 3.52 Miscellaneous manufacturing industries... 39.1 39.0 38.7 38.9 108.29 114.37 114.85 112.69 2.82 2.94 2.96 2.95 39.3 39.3 39.2 39.3 121.44 127.01 128.44 128.90 3.09 3.24 3.26 3.28 Food and kindred products....................... 40.2 40.5 40.3 39.8 128.61 136.21 136.89 137.02 3.16 3.38 3.38 3.40 Tobacco manufactures............................... 37.9 38.2 36.3 37.3 113.63 125.07 119.97 121.77 3.03 3.30 3.26 3.30 Textile-mill products.................................. 40.3 40.7 40.7 41.0 96.96 103.94 104.96 103.94 2.43 2.56 2.56 2.56 Apparel and related products................... 35.5 35.5 35.4 35.9 84.61 87.69 88.29 88.43 2.39 2.47 2.48 2.47 Paper and allied products.......................... 41.7 42.0 42.2 42.6 144.70 152.04 154.82 156.77 3.47 3.62 3.66 3.68 Printing, publishing, and allied industries. 37.9 37.7 37.7 37.6 148.18 157.17 157.96 157.50 3.92 4.18 4.19 4.20 Chemicals and allied products................... 41.5 41.4 41.8 41.1 153.59 161.85 164.69 162.77 3.71 3.90 3.94 3.97 Petroleum refining and related industries . 42.6 42.2 42.5 41.9 184.45 194.23 195.14 195.14 4.25 4.57 4.57 4.57 Rubber and misc. plastic products........... 40.8 40.4 40.7 40.6 129.68 135.81 137.16 137.89 3.21 3.37 3.37 3.43 Leather and leather products.................... 37.6 38.0 37.7 37.6 93.99 97.52 98.56 96.27 2.48 2.58 2.58 2.54 i Data adjusted to 1969 benchmark. Note.—Bureau of Labor Statistics; data are for production and related workers only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 68 PRICES □ AUGUST 1971 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h m n ip e e r - - F c a o o u n i a e d l l l t e r G a i l c n e a i c d s t ­ y o n F i p a n i n u 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 ­ r s 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.......................... 116.3 114.9 118.9 110.1 128.5 110.1 107.3 113.4 116.1 112.7 116.2 120.6 113.2 113.4 116.0 19 70—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 May.............. 120.8 118.2 123.2 114.7 131.6 117.2 114.4 118.1 120.2 118.8 121.6 128.1 116.5 118.9 119.9 June.............. 121.5 119.2 124.0 115.2 133.0 117.4 114.6 118.7 120.1 119.6 122.1 128.6 116.8 119.3 120.3 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Pro­ Period m c t A o i o e m l d s l i ­ ­ p F u r a c o r t m d s ­ c f f e o a e s o n e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c m M a q e h n e r u i a y 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 o e u r n n n i t p a s t ­ ­ 1 ­ n c M e e o l i l u s a ­ s ­ I960............................. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961............................. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99*2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962............................. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963............................. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964............................. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.'3 95! 5 95.4 95! 4 93.8 92.8 97.4 97.3 95.2 1965............................. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966............................. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967............................. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100 0 100 0 100 0 100 0 100 0 100.0 100.0 100.0 1968............................. 102.5 102.5 102.2 102.5 103.7 103.2 98!9 99! 8 103^4 113^3 101 II 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 ioo’7*104.9 1970............................. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 108.5 109.9 1970—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 Sept................... 111.0 112.1 113.0 110.4 107.5 109.9 107.1 102.5 109.4 114.2 108.3 117.4 112.1 107.8 113.8 103.6 111.5 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................... 111.0 107.1 110.7 111.7 106.7 110.4 112.8 103.3 109.4 111.1 108.5 116.2 113.8 108.7 115.1 108.9 111.9 1971—Jan.................... 111.8 108.9 111.8 112.2 106.9 111.7 113.5 103.8 108.4 112.2 109.0 116.5 114.2 109.3 118.8 109.5 112.3 Feb................... 112.8 113.9 113.3 112.5 106.7 112.4 113.0 104.2 109.1 117.5 109.3 116.4 114.6 109.7 119.0 109.7 112.6 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 June................. 114.3 116.0 114.9 113.9 108.5 114.2 114.4 104.4 108.7 126.1 110.2 118.5 115.5 109.8 122.2 110.0 112.6 July.................. 114.6 113.4 116.0 114.5 109.2 114.2 114.4 104.4 109.7 130.6 110.5 119.4 115.7 110.0 123.3 110.3 112.8 1 For transportation equipment, Dec. 1968 = 100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967= 100) 1970 1971 1970 1971 Group Group July May June July July May June July Farm products: Pulp, paper, and allied products: E L L P F G F l l i g i r r v u a v e g a n e i s e d i s h t s n p . t . a s m . o o a . . n . n c . u . i . d . k . d l l . . t k . . . r a . . . d . . . . y n . . . . r . . . . . i . . i . . . . m . e . . . . . . . . . . d . . . . . a . . . . . . . . . l . . . . p . . . . . . . . . . f r . . . . . . i . o . . . . . b . . . . . d . . . . . . . e . . . . . u . . . r . . . . . . . c . s . . . . . . . . . e . . . . . . . . . . 1 1 1 1 1 9 9 1 3 0 2 1 1 6 1 4 4 0 0 . . . . . . . 7 9 6 7 8 0 8 1 1 1 1 1 9 9 1 0 0 1 2 2 0 8 1 7 7 9 . . . . . . . 3 4 3 5 7 2 0 1 1 1 1 1 9 9 0 1 1 3 0 2 8 8 9 6 8 9 . . . . . . . 1 1 1 3 0 9 4 1 1 1 1 1 9 8 1 2 0 0 2 2 9 1 9 2 1 9 . . . . . . . 1 5 6 4 5 3 3 C W P P W Pu a a o b a o p p l n p s u o e e v t , i d r r e e l p b . d p p r . a o t . i u a . e n p . a p l d . g e p r . e . d r . . p r p . . . . a . . a . a . . . . n . . . p p . . . . . . d . . e . e . . . . . . . r r . . . . p . . . . . . a . . r a . . . . o . . n . . n . . . . . d . d . . d . . . . . . u . . . . . . p . b . c . . . . . . a . . t . . o . . . s . p . . . . a , . . . . . e . . . r . e . . . . r . d . . x . . . . b . . . . . c . . . . . o . . . . . l . . . . . u a . . . . . . . . . . d r . . . . . . . d . . . i . . . . . n . . . . . . . . . . . g . . . . . . . . . . . . . 1 1 1 1 1 1 0 0 1 2 1 0 0 8 0 2 8 1 . . . . . . 5 4 8 7 8 0 1 1 1 1 1 1 0 0 1 0 1 1 9 2 4 7 0 2 . . . . . . 6 2 4 6 4 2 1 1 1 1 1 1 0 0 1 1 1 1 2 9 2 4 0 2 . . . . . . 8 3 3 8 5 4 1 1 1 1 1 1 1 0 1 1 1 1 0 2 1 4 0 2 . . . . . . 1 8 8 6 8 4 Hay and seeds................. 101.2 106.8 109.9 114.4 Building paper and board................ 101.4 102.7 103.2 103.6 Other farm products....... 117.0 113.6 113.7 113.3 Processed foods and feeds: Metals and metal products: C M e e r a e t a , l p a o n u d l t b ry a , k e a r n y d p f r i o sh d . u .. c .. t . s .. . . . . . . . . . . . . . . . . . . . . 1 12 0 0 7 . . 3 4 1 1 1 1 1 6 . . 5 4 1 1 1 1 1 6 . . 5 7 1 1 1 1 1 9 . . 5 6 Iron and steel..................................... 116.2 120.1 120.3 121.9 Dairy products............................... 111.3 116.2 116.1 116.2 Steelmill products............................. 116.0 120.7 121.1 123.4 Processed fruits and vegetables 110.9 114.0 115.4 115.9 Nonferrous metals............................. 126.2 117.2 116.4 116.9 S B u e g ve a r r a a g n e d s a c n o d n f b e e c v ti e o ra n g e e ry m ... a .. t . e .. r .. i . a .. l . s .. . 1 1 1 1 7 3 . . 1 1 1 1 1 15 9 . . 7 2 1 11 1 5 9 . . 7 0 1 11 1 5 9 . . 9 4 H M a e r t d al w c a o r n e t .. a . i .. n .. e .. r . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 2 1 . . 7 0 1 1 2 1 3 5 . . 1 6 1 11 2 5 3 . . 8 0 1 11 2 6 3 . . 7 0 Animal fats and oils....................... 133.5 131.5 123.9 135.7 Plumbing equipment......................... 113.2 115.8 116.8 117.9 Crude vegetable oils....................... 114.8 120.6 127.2 136.7 Heating equipment........................... 111.4 115.1 115.2 115.9 Refined vegetable oils.................... 112.5 128.3 131.6 135.5 Fabricated structural metal products 113.1 117.3 117.9 118.2 Vegetable oil end products............ 111.0 118.5 118.5 122.8 Miscellaneous metal products.......... 115.2 118.2 118.7 119.3 Miscellaneous processed foods___ 113.9 113.9 113.9 113.8 Manufactured animal feeds........... 104.0 104.6 107.4 106.9 Textile products and apparel: Machinery and equipment: C W o o t o to l n p r p o r d o u d c u t c s t .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 0 9 5. . 1 3 1 9 0 3 9 . . 5 6 1 9 1 3 0 . . 4 9 1 9 1 2 1 . . 6 9 C A o g n ri s c t u ru lt c u t r i a o l n 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 ip ip .. . . . 1 1 1 1 4 2. . 3 6 1 12 1 1 6 . . 1 6 1 1 2 16 1 . . 9 2 1 1 1 21 7. .6 4 Manmade fiber textile products. 102.2 99.7 101.4 101.9 Metalworking machinery and equip 114.9 117.4 117.9 117.7 Apparel.......................................... 110.9 112.2 112.3 113.3 General purpose machinery and Textile housefurnishings.............. 103.6 104.3 104.5 104.8 equipment...................................... 114.3 118.7 119.3 119.8 Miscellaneous textile products. .. 106.6 113.6 118.7 119.9 Sp e e q ci u a 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 .. 115.8 120.4 120.9 121.6 Hides, skins, leather, and products: Electrical machinery and equip........ 106.7 109.4 109.4 109.5 Miscellaneous machinery................. 112.5 117.2 117.2 117.3 Hides and skins........... 96.4 121.4 114.0 114.0 Leather......................... 108.6 113.0 114.4 114.4 Footwear...................... 112.9 116.7 116.8 116.8 Other leather products. 106.8 107.9 108.2 108.2 Furniture and household durables: Household furniture....................... 111.9 115.0 115.2 115.3 Fuels and related products, and power: Commercial furniture..................... 114.9 118.1 118.1 118.1 C C E G l o o a e s k a c t e l f r . . u . i . . c . e . . . . l . p . s . . . o . . . . . . . . w . . . . . . . . . . e . . . . . . r . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 0 0 5 2 4 5 2 0 . . . . 1 5 5 9 1 1 1 1 0 8 4 1 6 2 7 2 . . . . 9 8 6 6 1 1 1 1 0 5 1 8 7 0 2 3 . . . . 5 5 5 0 1 1 1 1 5 0 1 8 0 7 3 2 . . . . 5 5 7 9 O H H Fl o o t o h m u o e s r r e e h h c e o o o le v u ld c e s t e r r a i h o n p o n g p i l l s d c 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 6 . . . . 1 5 2 2 1 1 9 9 2 0 3 9 0 7 . . . . 1 1 7 8 1 1 9 9 2 0 3 8 7 0. . . . 1 1 6 4 1 1 9 9 2 0 3 8 1 7 . . . . 9 2 6 0 Crude petroleum................... 104.8 113.2 113.2 113.2 Petroleum products, refined. 100.2 107.4 107.4 107.2 Nonmetallic mineral products: Chemicals and allied products: Industrial chemicals........................... 101.4 101.5 102.2 102.4 C Fl o a n t c g re la te ss i . n .. g ... r . e .. d .. i . e .. n .. t .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 15 6 . . 6 4 1 1 2 2 1 4 . . 2 4 1 1 2 2 2 1 . . 5 5 1 1 2 2 2 3 . . 5 3 Prepared paint............................................ 112.4 115.9 115.9 115.9 Concrete products........................... 112.2 119.6 120.1 121.5 D Pa r i u n g t s m an at d e r p i h al a s r . m ... a .. c .. e .. u .. t . i . c .. a .. l . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 10 0 1 0 . . 1 7 1 1 0 0 3 1 . . 5 9 1 9 0 9 2 . . 4 3 1 9 0 9 2 . . 8 6 Str r u e c fr tu ac ra to l r c ie la s y .. .. p .. r .. o .. d .. u .. c .. t . s .. .. e .. x .. c . l . u .. d .. i .. n .. g 109.9 114.5 114.5 114.5 Fats and oils, inedible......................... 132.5 138.8 132.0 130.8 Refractories..................................... 119.7 126.7 126.9 126.9 A P O l g t a h r s e i t c i r c u c l r h t e u e s r m i a n l i s c c a a h l n e s d m a n i m c d a a l t p s e r r a o i n a d d l u s . c p .. t r . s . o . . . . d . . . . u . . . . c . . . . t . . . s . . . . . 1 9 8 0 0 7 9 . . . 8 8 3 1 9 8 1 3 8 2 . . . 1 8 2 1 9 8 1 4 8 2 . . . 1 1 5 1 9 8 1 3 8 2. . . 5 4 6 A G Gl s y a p p s h s s u a c l m t o r n p o t r a o o i f n d in e u r g c s . t . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 9 1 7 8 9 . . . 9 0 6 1 1 1 2 3 0 3 1 1 . . . 5 6 2 1 1 1 3 0 3 0 1 4 . . . 5 7 0 1 1 1 3 1 31 1 2 . . . 5 2 7 Other nonmetallic minerals............ 111.7 124.8 124.8 125.6 Rubber and plastic products: Crude rubber........................................ 100.9 100.6 99.4 98.8 Tires and tubes..................................... 112.0 107.5 107.5 111.2 Transportation equipment: Miscellaneous rubber products........... 113.4 116.3 117.0 118.7 Plastic construction products (Dec. Motor vehicles and equipment. 107.0 114.2 114.4 114.7 1969 = 100)........................................ 96.8 94.6 93.6 94.0 Railroad equipment................... 115.2 120.4 120.8 121.5 Unsupported plastic film and sheeting (Dec. 1970=100).............................. 102.2 101.9 100.6 Laminated sheets, high pressure (Dec. 1970= 100).............................. 99.1 99.2 99.7 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................... 109.5 112.4 112.6 112.6 Lumber....................... 112.4 132.8 134.4 142.5 Tobacco products............................. 116.7 116.5 116.5 116.6 Mill work.................... 116.8 120.3 122.2 122.8 Notions.............................................. 108.4 111.7 111.7 111.7 Plywood..................... 110.4 111.0 110.2 111.7 Photographic equipment and supplies 105.2 105.9 106.0 106.2 Other wood products. 117..3 119.2 119.1 119.0 Other miscellaneous products.......... 109.3 111.6 111.9 112.4 1 Retitled to include the direct pricing of plastic construction products; continuity of the group index is not affected. Note.—Bureau of Labor Statistics indexes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 70 NATIONAL PRODUCT AND INCOME □ AUGUST 1971 GROSS NATIONAL PRODUCT (In billions of dollars) 1970r 1971 Item 1929 1933 1941 1950 1966 1967 1968r 1969r 1970" II III IV Ir IIP i i 103.1 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 968.5 983.5 988.41.020.8 1,040.5 Final purchases.................................................. 101.4 57.2 120.1 278.0 735.1 785.7 857.1 921.7 971.3 966.5 978.4 984.71,017.6 1,035.8 77.2 45.8 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.1 644.6 660.1 Durable goods.............................................. 9.2 3.5 9.6 30.5 70.8 73.1 84.0 89.9 88.6 90.7 90.4 84.9 97.6 100.0 Nondurable goods........................................ 37.7 22.3 42.9 98.1 206.9 215.0 230.8 247.6 264.7 262.9 265.5 270.9 272.0 279.4 30.3 20.1 28.1 62.4 188.6 204.0 221.3 242.1 262.5 260.2 265.0 268.9 275.0 280.7 16.2 1.4 17.9 54.1 121.4 116.6 126.0 137.8 135.3 134.1 138.6 137.3 143.8 150.1 14.5 3.0 13.4 47.3 106.6 108.4 118.9 130.4 132.5 132.1 133.5 133.6 140.6 145.4 10.6 2.4 9.5 27.9 81.6 83.3 88.8 98.6 102.1 102.1 104.8 100.8 104.3 106.1 Structures.............................................. 5.0 .9 2.9 9.2 28.5 28.0 30.3 34.5 36.8 36.6 37.3 37.1 37.9 37.8 Producers’ durable equipment............. 5.6 1.5 6.6 18.7 53.1 55.3 58.5 64.1 65.4 65.6 67.5 63.7; 66.3 68.3 Residential structures............................... 4.0 .6 3.9 19.4 25.0 25.1 30.1 31.8 30.4 29.9 28.7 32.8 36.4 39.3 Nonfarm................................................ 3.8 .5 3.7 18.6 24.5 24.5 29.5 31.2 29.7 29.3 28.1 32.2 35.7 38.7 Change in business inventories.................. 1.7 - 1.6 4.5 6.8 14.8 8.2 7.1 7.4 2.8 2.1 5.1 3.7i 3.2 4.7 1.8 -1.4 4.0 6.0 15.0 7.5 6.9 7.3 2.5 1.8 4.7 3.3 3.0 4.2 Net exports of goods and services................... 1.1 .4 1.3 1.8 5.3 5.2 2.5 2.0 3.6 4.2 4.0 2.7 4.2 .1 Exports.......................................................... 7.0 2.4 5.9 13.8 43.4 46.2 50.6 55.6 62.9 63.2 63.7 63.2 66.1 65.8 Imports.......................................................... 5.9 2.0 4.6 12.0 38.1 41.0 48.1 53.6 59.3 59.0 59.7 60.5 61.9 65.7 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 156.8 180.1 199.6 209.7 219.4 216.5 220.1 223.7 228.2 230.2 Federal.......................................................... 1.3 2.0 16.9 18.4 77.8 90.7 98.8 99.2 97.2 96.8 96.1 95.9 96.7 96.0 National defense...................................... 13.8 14.1 60.7 72.4 78.3 78.4 75.4 75.1 74.2 73.2 73.0 72.0 Other......................................................... 3.1 4.3 17.1 18.4 20.5 20.7 21.9 21.6 21.9 22.7 23.7 24.0 State and local.............................................. 7.2 6.0 7.9 19.5 79.0 89.4 100.8 110.6 122.2 119.7 124.0 127.9 131.5 134.2 Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3 658.1 675.2 706.6 724.7 720.0 721.1 723.3 715.9 729.7 736.3 Note.—Dept, of Commerce estimates. Quarterly data are seasonally see the Survey of Current Business, July 1968, July 1969, July 1970, July adjusted totals at annual rates. For back data and explanation of series, 1971, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1970r 1971 1929 1933 1941 1950 19 66 1967 1968 r 1969 r 1970 r Item II III IV Ir Up National income............................................... 86.8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 832.2 Compensation of employees............................ 51.1 29.5 64.8 154.6 435.5 467.2 514.6 565.5 601.9 598.5 606.5 609.3 627.9 639.6 Wages and salaries..................................... 50.4 29.0 62.1 146.8 394.5 423.1 464.9 509.6 541.4 538.5 545.2 547.2 562.3 572.6 Private..................................................... 45.5 23.9 51.9 124.4 316.8 331.3 369.2 405.5 426.6 424.4 429.4 429.9 441.2 450.0 Military................................................... .3 .3 1.9 5.0 14.6 16.2 17.9 19.0 19.4 19.5 19.2 18.6 19.2 18.6 Government civilian................................ 4.6 4.9 8.3 17.4 63.1 69.5 77.8 85.1 95.5 94.5 96.6 98.6 101.8 104.0 Supplements to wages and salaries............. .7 .5 2.7 7.8 41.0 44.2 49.7 56.0 60.5 60.0 61.3 62.1 65.7 67.0 Employer contributions for social in­ surance ................................................ .1 .1 2.0 4.0 20.3 21.9 24.3 27.8 29.6 29.5 30.1 30.1 33.1 33.6 Other labor income................................ .6 .4 .7 3.8 20.7 22.3 25.4 28.2 30.8 30.4 31.2 32.0 32.6 33.4 Proprietors’ income......................................... 15.1 5.9 17.5 37.5 61.3 62.1 64.2 67.0 66.9 67.6 66.0 65.9 66.4 67.1 Business and professional.......................... 9.0 3.3 11.1 24.0 45.2 47.3 49.5 50.3 51.0 51.0 51.4 51.5 51.6 51.9 Farm............................................................ 6.2 2.6 6.4 13.5 16.1 14.8 14.7 16.8 15.8 16.6 14.5 14.4 14.8 15.2 Rental income of persons............................... 5.4 2.0 3.5 9.4 20.0 21.1 21.2 22.6 23.3 23.2 23.4 23.7 23.8 24.2 Corporate profits and inventory valuation adjustment................................................... 10.5 - 1.2 15.2 37.7 82.4 78.7 84.3 78.6 70.8 71.5 73.0 69.0 79.0 Profits before tax....................................... 10.0 1.0 17.7 42.6 84.2 79.8 87.6 84.2 75.4 75.8 78.5 71.6 82.6 Profits tax liability................................ 1.4 .5 1.6 17.8 34.3 33.2 39.9 39.1 34.1 34.5 35.6 32.3 37.9 Profits after tax....................................... 8.6 .4 10.1 24.9 49.9 46.6 47.8 44.5 41.2 41.3 42.9 39.2 44.7 Dividends............................................ 5.8 2.0 4.4 8.8 20.8 21.4 23.6 24.4 25.0 24.9 25.2 25.0 25.6 25.4 Undistributed profits.......................... 2.8 - 1.6 5.7 16.0 29.1 25.3 24.2 20.0 16.2 16.4 17.7 14.3 19.1 Inventory valuation adjustment................ .5 - 2.1 -2.5 -5.0 - 1.8 - 1.1 -3.3 -5.5 -4.5 -4.2 -5.5 - 2.6 -3.5 -5.2 Net interest...................................................... 4.7 4.1 3.2 2.0 21.4 24.4 26.9 29.9 33.0 32.6 33.4 34.2 35.0 35.8 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

AUGUST 1971 □ NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1970 r ; 1971 Item 1929 1933 1941 1950 1966 1967 1968 r 1969 r 1970 r II III IV lr 1\p 103.1 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 968.5 983.5 988.41,020.8 1,040.5 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 63.9 68.9 74.5 81.1 87.6 86.9 88.2 89.8 91.7 93.2 Indirect business tax and nontax lia- 7.0 7.1 11.3 23.3 65.7 70.4 78.6 85.7 92.9 91.9 94.2 95.8 99.3 101.6 .6 .7 .5 .8 3.0 3.1 3.4 3.7 3.9 3.9 4.0 4.1 4.2 4.2 Statistical discrepancy.......................... .7 .6 .4 1.5 - 1.0 -.7 -2.7 -4.1 -4.5 -5.8 -3.2 - 1.6 -4.9 Plus: Subsidies less current surplus of gov- -.1 .1 .2 2.3 1.4 .7 1.1 1.7 1.8 1.9 1.7 1.6 .8 Equals: National income.................................. 86.8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 832.2 Less: Corporate profits and inventory valu­ ation adjustment............................... 10.5 - 1.2 15.2 37.7 82.4 78.7 84.3 78.6 70.8 71.5 73.0 69.0 79.0 Contributions for social insurance.... .2 .3 2.8 6.9 38.0 42.4 47.1 54.0 57.6 57.4 58.4 58.5 63.9 64.9 Excess of wage accruals over disburse­ ments .................................................. - 2.1 -.4 Plus: Government transfer payments........... .9 1.5 2.6 14.3 41.1 48.7 56.1 62.2 75.6 77.3 77.2 80.7 83.7 91.8 Net interest paid by government and consumers......................................... 2.5 1.6 2.2 7.2 22.2 23.6 26.1 29.0 31.7 31.1 32.2 32.4 32.0 31.8 Dividends.............................................. 5.8 2.0 4.4 8.8 20.8 21.4 23.6 24.4 25.0 24.9 25.2 25.0 25.6 25.4 Business transfer payments................. .6 .7 .5 .8 3.0 3.1 3.4 3.7 3.9 3.9 4.0 4.1 4.2 4.2 Equals: Personal income................................. 85.9 47.0 96.0 227.6 587.2 629.3 688.9 750.3 803.6 803.8 809.8 816.7 834.7 855.0 Less: Personal tax and nontax payments---- 2.6 1.5 3.3 20.7 75.4 83.0 97.9 116.2 115.9 118.0 113.5 115.2 112.7 113.9 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 511.9 546.3 591.0 634.2 687.8 685.7 696.2 701.5 722.0 741.1 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 479.3 506.0 551.2 596.3 633.7 631.5 638.9 643.0 663.2 679.0 Personal consumption expenditures. 77.2 45.8 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.7 644.6 660.1 Consumer interest payments............ 1.5 .5 .9 2.4 12.4 13.2 14.3 15.8 16.9 16.8 17.1 17.4 17.7 17.9 Personal transfer payments to for­ eigners............................................ .3 .2 .2 .5 .6 .7 .8 .9 .9 1.0 .9 .9 .9 1.0 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 32.5 40.4 39.8 37.9 54.1 54.2 57.4 58.5 58.8 62.1 Disposable personal income in constant (1958) 1 1 dollars............................................................ 150.6 112.2 190.3 249.6 458.9 477.5 499.0 513.5 531.5; 533.0 536.0 532.5 543.0 551.7 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) 1970r 1971 r Item 1969 r 1970 r June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May JuneP Total personal income.......................... 750.3 803.6 801.4 805.3 809.0 814.9 813.6 815.7 820.9 830.4 833.6 840.1 844.7 850.1 870.3 Wage and salary disbursements.......... 590.6 541.4 539.6 543.0 545.1 548.7 544.2 545.9 551.5 559.2 561.5 566.1 569.0 573.3 575.3 Commodity-producing industries. . 197.4 200.7 200.7 201.4 201.6 201.3 196.6 196.6 202.1 202.8 202.5 204.3 205.4 207.1 207.8 Manufacturing only...................... 157.6 158.3 158.8 159.4 158.9 159.0 153.8 153.2 158.4 159.4 159.2 160.2 160.6 162.0 162.5 Distributive industries..................... 120.0 129.1 128.9 130.1 130.8 131.3 131.9 132.2 131.4 134.2 135.4 136.8 137.6 138.7 138.7 Service industries............................. 88.1 96.7 95.9 96.8 97.2 97.8 98.8 99.8 100.4 101.9 102.4 103.3 103.9 105.0 105.7 Government..................................... 104.1 114.8 114.1 114.7 115.5 118.3 116.8 117.3 117.7 120.3 121.2 121.6 122.1 122.6 123.1 Other labor income............................. 28.2 30.8 30.7 30.9 31.2 31.4 31.7 32.0 32.2 32.4 32.6 32.8 33.1 33.4 33.7 Proprietors’ income............................. 67.1 66.8 67.4 66.6 66.0 65.3 65.7 65.9 66.1 66.3 66.3 66.6 66.9 67.1 67.3 Business and professional............... 50.3 51.0 51.4 51.4 51.4 51.4 51.5 51.4 51.5 51.6 51.5 51.7 51.8 51.9 52.0 Farm................................................. 16.8 15.8 16.0 15.2 14.6 13.9 14.2 14.5 14.6 14.7 14.8 14.9 15.1 15.2 15.3 Rental income...................................... 22.6 23.3 23.3 23.3 23.4 23.5 23.5 23.7 23.8 23.9 23.5 24.0 24.1 24.2 24.3 Dividends............................................. 24.4 25.0 24.5 25.1 25.2 25.4 25.4 25.5 23.9 25.6 25.7 25.5 25.5 25.6 25.2 Personal interest income..................... 58.8 64.7 64.2 64.9 65.6 66.3 66.5 66.7 66.8 66.9 67.0 67.0 67.3 67.5 67.7 Transfer payments............................... 65.9 79.6 79.5 79.9 80.8 82.9 84.7 84.5 85.1 86.8 87.8 89.1 89.7 90.2 108.1 Less: Personal contributions for social insurance....................................... 26.3 28.0 27.8 28.2 28.3 28.5 28.2 28.3 28.6 30.7 30.8 31.1 31.1 31.3 31.4 Nonagricultural income........................ 727.7 781.4 778.8 784.3 788.1 794.2 792.5 795.0 800.5 809.1 812.0 818.4 822.8 828.0 848.1 Agricultural income............................. 22.6 22.2 22.6 21.0 20.9 20.7 21.1 20.7 20.4 21.3 21.5 21.7 21.9 22.1 22.2 Note.—Dept, of Commerce estimates. Monthly data are seasonally adjusted totals at annual rates. See also Note to table opposite. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1. SUMMARY OF FLOW OF FUNDS ACCOUNTS FOR FIRST QUARTER 1971 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest U.S. of All State Govt. Sponsored Mone­ Pvt. the sectors Discrep­ Natl, Sector House­ Busi­ and local Total Total credit tary Coml.1 nonbank world ancy savings holds ness govts. agencies auth. banks finance and invest­ Transaction ment category U S U S U S U S U S U S U S U S U S U S U S U S U 1 Gross saving.................................................. ....... 177.0 ....... 88.5.......-7.0 ....... 258.4 -18.1 7.0 .1 * 3 8 3 1 - 1.1 246 2 247 3 1 2 3 N Ca e p t i s t a a v l i c n o g n ( s 1 u - m 2) p . t .. i . o .. n .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 8 3 3 . . 8 2 . . . . . . . . . . . . . . 7 1 7 0 . . 9 5.......-7.0 . .. . . .. . . .. .. . 1 8 7 6 1 . . 7 7 -18.1 2 4 . . 4 6...............1 * 2 1 0 8 1 1 7 4 —1 1 1 7 7 2 4 1 1 1 7 7 3 4 2 1 2 3 4 Gross investment (5 + 10)............................. 183.2 ....... 76.2....... -15.8 ....... 243.6 ....... -18.2 ....... 8.7 — .2 3 8 5 1 4.1 238 2 8Q 237.3 4 5 Private capital expenditures......................... 124.5 ......... 114.8 ......... 239.2 ......... 2.1 1.2 9 241 4 4 9 241 4 5 6 Consumer durables.................................. 97.6......... 97.6......... 97 6 97 g 6 7 Residential construction.......................... 21.6......... 14.8......... 36.4......... 36 4 304 7 8 Plant and equipment................................ 5.3......... 96.8......... 102.1 ......... 2.1 1 2 9 104 3 104.3.!! 8 9 Inventory change..................................... 3.2......... 3.2......... 3 2 3.2. ! 9 10 Net financial investment (11-12)................... 58.7....... -38.5 ....... -15.8 ....... 4.4....... -18.2 ....... 6.6 — .2 2 6 4 2 4 1 —3 2 3.2 _£ J JQ 11 Financial uses................................................ 84.8....... 26.9....... 10.7....... 122.4 ....... -16.7 ....... 158.5 2.1 11 4 60 3 84 6 12 6 276 8 8.5 11 12 Financial sources........................................... 26.1 65.5 26.5 118.1 1.5 151.9 2.3 11 4 57.7 80.5 8 5 280 0 12*6.! 12 13 Gold, SDR’s, and official fgn. exchange. -2.5 -.9 — .9 . . . .9 -2.5 —2.5 —2.5 13 14 Treasury currency and SDR ctfs........... .5 .5 .. .5 .4 _ 1 14 15 Demand deposits and currency............... . . 2.2 —3 0 —6.4 —.9 15 5.8 .4 3.6 9.9 2.9 18.4 .2......... 3 2 15.1 2 8 12.8 18^4 5 6 16 -19.1 -19.1 __ —13 -17 8 -19.1 -19!1 17 18 Foreign.................................................. . . . .2 — 4 — i _ 1 18 19 Time and savings accounts....................... 101.3 109.2 1.8 110.2 1 8 110 2 19 20 At commercial banks............................ 50.7 3.0 4.9 58.7 .4 57.8 57.8 — 1.2 57 8 20 21 At savings institutions.......................... 50.5 50.5 1.8 52.3 1.8 52.3 52 3 21 22 Life insurance reserves............................ 4.8 4.8 .1 4.8 4 8 4 8 22 23 Pension fund reserves.............................. 22.8 22.8......... ......... 2.1 20.8 20 8 22 8 23 24 Interbank items........................................ 7.9 7.9 —4.2 10.3 12.1 —2.4 7.9 7.9 24 25 Corporate shares..................................... -12.0 8.9 -12.0 8.9 21.1 .2 * 21.1 .2 .3 .3 9 3 25 26 Credit market instruments...................... -37.8 22.7 .8 51.6 1.9 26.0-35.1 100.3 4.3 -1.6 107.5 -.3 .3 -1.8 16.1 42.0 -1.3 49.1 2.8 26.5 4.7 103.2 103.2 26 27 U.S. Government securities................. -50.9 .8 -50.1 -1.5 20.6 -1.8 -1.9 -1.8 15.7 3.5 3.3 26.1 . —3 3 27 28 State and local obligations................... -3.5 6.1 .1 25.6 2.8 25.6 22.8 21.4 1.4 . . . 25 6 28 29 Corporate and foreign bonds............... 14.7 26.4 1.8 16.5 26.4 15.9 5.5 ......... 1.4 15.9 4.1 .6 1.2 33 0 29 30 Home mortgages.................................. -.2 11.9 2.7 -.2 14.6 -.7 -.1 17.0 1.6 1.0 2.7 13.4 1.6 16 1 30 31 Other mortgages................................... 2.1 1.4 14.6 2.1 16.0 .5 13.3 1.0 2.7 9.6 16 0 31 32 Consumer credit................................... 4.0 1.5 1.5 4.0 2.5 1.8 8 4 0 32 33 Bank loans n.e.c................................... 3.5 .4 3.8 10.5 6.2 10.5 . . . 6.2 5 10 5 33 34 Other loans........................................... 1.9 -7.6 7.7 .4 -7.6 9.9 4.5 4.7 11.6 .2 .3 — .6 —2.6 4.8 —9.0 — .3 3.1 1 3 34 35 Security credit........................................... 1.6 2.5 1.6 2.5 -.8 -1.1 —2.9 2.1 —1.1 .6 .1 1 5 35 36 To brokers and dealers....................... 1.6 1.6 -3.4 -1.1 -3.6 .2 —1.1 .6 — 1 1 36 37 To others............................................... 2.5 2.5 2.6 1 9 1 2 6 37 38 Taxes payable........................................... .9 .2 .2 .9 2.1 -.4 - 5 3 _ 3 2.3 .5 — 1 8 38 39 Trade credit............................................... .6 11.6 6.0 .5 11.6 7.1 -1.7 .1 .4 4 .4 1.2 10.6 8.4 —2 2 39 40 Equity in noncorporate business............. -4.4 -4.4 -4.4 -4.4 —4 4 40 41 Miscellaneous claims................................ 2.6 .3 11.2 2.4 13.8 2.8 -.2 .4 18.2 10.8 1.7 —.5 — 6 9.1 6.3 7.4 1.0-14.8 4.7 17.0 18.7 1 7 41 42 Sector discrepancies (1-4)........................... -6.2 12.2 8.8 14.8 .2 — 1.7......... .1 —2 0 —5 2 8 1 8 0 10 1 42 A 72 FLOW OF FUNDS □AUGUST 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o FLOW OF FUNDS A 73.1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Transaction category, or sector 1966 1967 1968 1969 1970 I II III IV I II III IV I Funds raised,by type and sector Total funds raised 1 by nonfinancial sectors.................. 68.5 83.5 96.9 90.4 97.5 92.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.6 1 2 U.S. Government............................. 3.5 13.0 13.4 -3.6 12.8 -5.4 -9.5 -.7 1.2 3.0 16.0 12.2 20.0 - 1.6 2 3 Public debt securities.................... 2.3 8.9 10.3 -1.3 12.9 -5.8 - 8.8 4.9 4.9 3.5 18.1 11.4 18.5 1.4 3 4 Budget agency issues..................... 1.2 4.1 3.1 -2.4 -.1 .5 -.7 -5.6 -3.7 -.5 - 2.0 .8 1.5 -2.9 4 5 All other nonfinancial sectors.. 64.9 70.5 83.5 94.1 84.7 97.9 103.0 89.1 85.7 78.3 87.7 82.4 90.6 114.2 5 6 Corporate equity shares............... .9 2.4 -.7 4.8 6.8 .3 3.6 6.0 9.2 5.9 6.0 5.4 9.9 9.1 6 7 Debt instruments........................... 64.0 68.1 84.2 89.3 77.9 97.6 99.5 83.2 76.4 72.4 81.7 77.1 80.7 105.0 7 8 Debt capital instruments.......... 39.0 46.6 50.9 49.1 58.8 57.3 51.5 45.2 42.5 45.6 54.6 60.0 74.7 83. 7 8 9 State and local govt, sec....... 5.7 8.7 9.6 8.1 11.8 12.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 9 10 Corporate and fgn. bonds... 11.0 15.9 14.0 13.1 21.1 15.8 13.3 12.1 11.1 15.0 22.4 22.2 24.8 27.5 10 11 22.3 22.0 27.3 27.9 25.8 28.7 28.8 27.5 26.7 21.7 22.0 28.9 30.7 30.6 11 12 Home mortgages................ 11.4 11.6 15.2 15.7 12.8 16.5 16.6 15.7 13.9 10.7 11.1 15.2 14.2 14.6 12 n Other residential................. 3.1 3.6 3.5 4.8 5.9 4.2 4.7 4.8 5.6 4.6 5.4 6.5 6.9 6.3 13 14 5.7 4.7 6.6 5.5 5.4 5.9 5.1 5.3 5.8 4.8 4.2 5.2 7.5 7.7 14 15 2.1 2.1 2.1 1.9 1.8 2.2 2.3 1.8 1.5 1.5 1.4 2.1 2.1 2.0 15 16 25.0 21.6 33.3 40.2 19.2 40.3 47.9 38.0 33.9 26.7 27.0 17.0 6.0 21.4 16 17 Bank loans n.e.c.................... 10.3 9.6 13.4 15.7 2.7 17.0 19.1 11.7 14.2 7.6 9.0 1.9 -7.6 4.3 17 18 Consumer credit.................... 7.2 4.6 11.1 9.3 4.3 10.2 10.8 8.9 7.5 4.8 6.1 6.2 .2 4.0 18 19 Open market paper............... 1.0 2.1 1.6 3.3 3.8 4.9 4.7 2.7 1.0 5.0 2.2 .5 7.5 2.9 19 20 Other...................................... 6.4 5.2 7.3 11.8 8.4 8.1 13.3 14.6 11.2 9.4 9.8 8.4 5.9 10.1 20 21 By borrowing sector—................ 64.9 70.5 83.5 94.1 84.7 97.9 103.0 89.1 85.7 78.3 87.7 82.4 90.6 114.2 21 22 Foreign.......................................... 1.5 4.1 3.0 3.7 2.6 4.0 6.0 2.3 2.4 2.6 1.7 2.2 4.0 5.0 22 23 6.4 8.8 9.9 8.5 12.2 13.4 9.7 5.8 5.1 9.4 10.4 9.7 19.5 26.0 23 24 Households.................................... 23.2 19.7 31.8 32.2 21.6 33.0 36.0 31.5 28.2 22.8 21.5 24.8 17.2 22.7 24 25 Nonfinancial business................... 33.8 37.9 38.8 49.7 48.3 47.4 51.3 49.4 49.9 43.4 54.2 45.7 50.0 60.5 25 26 Corporate................................... 24.9 29.3 30.3 39.1 38.8 37.1 41.1 37.4 41.0 36.9 45.2 33.6 39.2 47.1 26 27 Nonfarm noncorporate............... 5.5 5.0 5.8 7.4 6.3 7.1 6.6 8.7 6.4 3.5 5.2 8.7 7.7 8.7 27 28 Farm.......................................... 3.5 3.5 2.7 3.2 3.2 3.3 3.6 3.3 2.5 3.0 3.8 3.3 3.1 4.7 28 Funds advanced directly in credit markets 1 Total funds raised............................. 68.5 83.5 96.9 90.4 97.5 92.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.6 1 Advanced directly by— 2 U.S. Government......................... 4.9 4.6 4.9 2.5 3.2 2.5 1.7 3.7 2.3 3.9 3.6 3.5 1.8 4.3 2 3 U.S. Govt, credit agencies, net... .3 .5 -.2 .2 1.2 .4 -.8 -.1 1.5 -.7 1.6 .9 3.0 2.1 3 4 Funds advanced........................ 5.1 -.1 3.2 9.0 9.9 4.0 7.6 10.5 14.1 13.7 7.1 8.7 10.1 .3 4 5 Less funds raised in cr. mkt__ 4.8 -.6 3.5 8.8 8.7 3.6 8.4 10.6 12.5 14.4 5.5 7.8 7.0 - 1.8 5 6 Federal Reserve System............... 3.5 4.8 3.7 4.2 5.0 4.1 4.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 6 7 16.7 36.6 39.5 12.2 31.3 7.9 29.3 -.9 12.1 1.0 23.3 63.6 37.3 40.4 7 8 Funds advanced........................ 16.8 36.9 39.7 16.5 29.5 8.8 33.8 4.2 18.9 10.1 27.4 52.1 28.4 39.1 8 9 Less funds raised....................... .1 .2 .2 4.3 - 1.8 .9 4.5 5.0 6.8 9.1 4.1 - 11.6 -8.9 -1.3 9 10 Private nonbank finance............... 25.9 34.4 34.2 30.1 38.9 30.9 39.6 25.6 24.4 25.3 42.4 42.0 45.8 70.3 10 11 Savings institutions, net............ 7.8 16.8 14.6 10.4 14.7 15.9 13.3 6.8 5.6 4.7 15.3 18.0 20.7 45.5 11 12 Insurance................................... 19.3 18.7 22.0 21.8 24.9 19.8 27.5 20.6 19.5 23.2 27.1 24.1 25.3 28.8 12 13 Finance n.e.c., net..................... -1.3 - 1.1 -2.5 - 2.1 -.7 -4.8 - 1.2 - 1.8 -.7 - 2.6 * * -.3 -3.9 13 14 Foreign.......................................... - 1.8 2.8 2.5 1.3 10.9 .2 1.0 5.1 - 1.1 9.4 9.5 4.9 19.6 27.3 14 15 Private domestic nonfinancial.... 19.1 -.2 12.3 39.8 7.1 46.6 18.9 55.5 38.4 41.2 17.9 -27.9 -2.5 -47.9 15 16 Business..................................... 3.6 -.2 7.4 13.8 - 1.0 15.8 14.1 18.1 7.0 15.1 12.3 -28.5 -2.9 .8 16 17 State and local governments... 3.4 2.1 .4 6.1 -3.8 8.1 2.9 7.7 5.6 -2.5 -5.3 -7.8 .4 1.9 17 18 Households................................ 11.9 * 5.8 18.3 10.6 19.9 1.7 26.4 25.3 24.8 8.8 8.1 .5 -49.8 18 19 Less net security credit............. -.2 2.2 1.4 - 1.6 -1.4 -2.7 -.2 -3.2 -.4 -3.8 - 2.1 -.2 .6 .9 19 Sources of funds supplied to credit markets Total borrowing by nonfinancial sectors................... 68.5 83.5 96.9 90.4 97.5 92.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.6 1 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total.............................................. 42.8 51.3 60.8 44.5 68.2 59.1 27.0 47.6 44.3 55.1 72.0 69.2 76.6 76.7 2 3 23.7 51.5 48.5 4.7 61.1 12.5 8.2 -7.9 5.9 13.9 54.1 97.1 79.2 124.6 3 4 Demand dep. and currency.. 4.0 12.4 14.8 7.1 6.1 5.9 6.6 7.6 8.2 2.0 7.0 7.3 8.3 15.4 4 5 Time and svgs. accounts.... 19.7 39.1 33.7 -2.4 54.9 6.6 1.6 -15.5 -2.3 11.9 47.1 89.9 70.8 109.2 5 6 At commercial banks... 12.5 22.5 20.8 -10.5 38.4 -6.8 — 7.4 -21.3 -6.4 7.4 31.9 68.2 46.3 58.7 6 7 At savings instit.............. 7.2 16.6 12.9 8.1 16.5 13.4 9.0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 7 8 Credit mkt. instr., net............... 19.1 -.2 12.3 39.8 7.1 46.6 18.9 55.5 38.4 41.2 17.9 -27.9 -2.5 -47.9 8 9 U.S. Govt, securities.............. 8.5 — 1.7 7.7 15.0 -6.9 21.8 .9 23.2 14.1 6.5 -8.0 -6.8 -19.2 -50.1 9 10 Pvt. credit market instr.......... 11.4 7.8 13.4 27.0 15.2 27.2 23.6 29.6 27.5 37.6 23.9 -22.1 21.5 15.0 10 11 Corporate equities................. -1.0 -4.1 -7.4 -3.8 -2.6 -5.2 -5.9 -.6 -3.7 -6.7 -.1 .7 -4.3 -12.0 11 12 Less security debt................. -.2 2.2 1.4 - 1.6 -1.4 -2.7 -.2 -3.2 -.4 -3.8 -2.1 -.2 .6 .9 12 Other sources: 13 Foreign funds................................ .7 4.6 4.3 9.6 2.4 13.8 14.8 10.4 -.6 10.8 2.7 -4.5 .7 10.5 13 14 2.5 1.7 1.8 8.3 -8.4 13.7 13.8 5.3 .5 1.3 - 6.8 -9.4 -18.9 -16.8 14 15 - 1.8 2.8 2.5 1.3 10.9 .2 1.0 5.1 - 1.1 9.4 9.5 4.9 19.6 27.3 15 16 Chg. in U.S. Govt, cash bal......... -.4 1.2 - 1.1 .4 2.6 -5.8 1.7 1.6 3.9 1.0 2.1 1.4 6.1 -18.7 16 17 U.S. Government loans............... 4.9 4.6 4.9 2.5 3.2 2.5 1.7 3.7 2.3 3.9 3.6 3.5 1.8 4.3 17 18 Pvt. insur. and pension res........... 16.7 17.5 18.5 18.7 21.0 14.9 22.4 18.7 18.9 18.7 22.7 19.8 22.8 25.5 18 19 3.8 4.3 9.5 14.7 .1 8.1 26.0 6.4 18.1 - 8.1 .7 5.3 2.5 14.3 19 Digitized for FRASER http://fraser.stloNuoistefe.—dD.oartga/ revised 1968-70. For other notes see p. A-73.3. Federal Reserve Bank of St. Louis

A 73.2 FLOW OF FUNDS □ AUGUST 1971 3. PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Transaction category, or sector 1966 1967 1968 1969 1970 1 II III IV I II III IV I Demand deposits and currency 1 Net incr. in banking system liability. . 2.6 14.8 14.8 8.5 10.1 - 1.0 10.3 11.0 13.2 5.1 9.8 8.9 16.9 -.9 1 2 U.S. Government deposits........... -.4 1.1 - 1.2 .6 2.5 -5.7 1.7 1.9 4.2 1.1 2.0 .7 6.0 -19.1 2 3 Money supply............................... 3.0 13.7 16.0 7.9 7.7 4.7 8.6 9.1 9.0 4.0 7.8 8.2 10.8 18.2 3 4 Domestic sectors....................... 3.9 13.4 15.7 7.6 7.4 4.8 8.0 8.5 9.0 2.6 8.2 8.6 10.3 18.4 4 5 Households............................ 3.1 9.4 11.1 5.9 4.7 -.9 10.2 9.5 5.1 5.4 7.4 5.0 1.0 5.8 5 6 Nonfinancial business........... .7 .8 1.8 -.8 -.9 3.9 -5.6 -4.3 3.0 -2.3 -2.7 .7 .9 .4 6 7 State and local governments. -.1 - 1.0 .7 3.2 1.2 2.5 3.4 3.9 2.9 -.3 1.0 1.1 3.1 3.6 7 8 Financial sectors................... -.1 1.0 .9 .5 1.3 - 1.1 1.4 .9 .8 .5 1.2 1.4 2.0 2.9 8 9 .3 3.2 1.2 - 1.2 1.1 .3 -1.3 -1.5 - 2.8 -.7 1.3 .5 3.3 5.6 9 10 Rest of the world...................... - 1.0 .3 .3 .3 .3 -.1 .6 .6 * 1.4 -.4 -.5 .5 -.1 10 Time and savings accounts 1 Net increase—Total.......................... 20.2 40.8 33.3 - 1.6 53.9 5.9 -.2 -15.4 3.4 16.8 44.3 87.5 67.1 110.2 1 2 At commercial banks—Total.... 13.3 23.8 20.6 -9.7 36.7 -7.6 -9.0 - 21.2 - 1.1 11.6 28.5 65.6 41.3 57.8 2 3 Corporate business................... -.7 2.9 1.9 -9.8 12.8 -14.4 -9.5 - 11.0 -4.2 .5 6.1 32.3 12.2 3.0 3 4 State and local governments... 1.3 2.4 3.2 -5.9 9.9 -3.7 -5.0 -10.3 -4.6 6.4 10.3 13.4 9.6 4.9 4 5 Foreign....................................... .8 1.2 -.3 1.0 -1.9 -.5 -1.4 .4 5.7 4.3 -3.5 -3.2 -5.1 - 1.2 5 6 Households................................ 11.9 17.1 15.7 5.2 15.8 11.3 7.1 * 2.4 .5 15.5 22.5 24.5 50.7 6 7 At savings institutions.................. 7.0 17.0 12.8 8.1 17.2 13.5 8.8 5.7 4.5 5.2 15.8 21.9 25.8 52.3 7 Liabilities— 8 Savings and loan assns.......... 3.6 10.6 7.5 4.1 11.1 8.0 4.8 2.9 .7 2.0 9.8 15.6 16.9 36.8 8 9 Mutual savings banks........... 2.6 5.1 4.2 2.6 4.4 3.8 2.7 1.5 2.2 1.6 4.4 4.7 7.0 12.4 9 10 .8 1.2 1.1 1.4 1.7 1.6 1.2 1.3 1.5 1.6 1.7 1.5 1.9 3.1 10 Assets 11 Households............................ 7.2 16.6 12.9 8.1 16.5 13.4 9.0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 11 12 Cr. union deps. at S & L’s... -.2 .3 -.1 * .7 .1 -.2 -.1 .3 .8 .6 .2 1.3 1.8 12 U.S. Government securities 1 Total net issues.................................. 8.7 12.5 16.7 5.5 21.6 -.5 - 1.0 10.0 13.8 17.5 21.6 20.1 27.0 -3.3 1 2 Household savings bonds............ .6 1.0 .4 -.4 .3 -.4 -.4 -.8 .1 -.9 -.2 .5 1.7 1.9 2 3 Direct excluding savings bonds... 1.8 7.9 9.9 -.9 12.6 -5.4 -8.4 5.6 4.8 4.4 18.3 10.9 16.8 -.6 3 4 Budget agency issues..................... * .1 1.5 -.4 1.3 .8 -1.3 -.8 -.2 2.1 .2 1.0 1.7 .8 4 5 Sponsored agency issues............... 5.1 -.6 3.2 9.1 8.7 4.8 8.4 10.6 12.5 14.4 5.5 7.8 7.0 - 1.8 5 6 Loan participations....................... 1.3 4.0 1.7 -1.9 -1.3 -.3 .7 -4.8 -3.3 - 2.6 - 2.2 -.1 -.2 -3.6 6 7 Net acquisitions, by sector............... 8.7 12.5 16.7 5.5 21.6 -.5 - 1.0 10.0 13.8 17.5 21.6 20.1 27.0 -3.3 7 8 U.S. Government (agency sec.)... 1.3 -.1 .1 -1.3 -.1 - 1.1 - 2.2 -.8 - 1.0 .1 * .1 -.6 8 9 Sponsored credit agencies............ 1.0 * -.1 -.2 1.7 - 2.0 .3 -.5 1.2 2.0 -.5 1.0 4.4 -1.9 9 10 Direct marketable..................... .3 .9 -.1 -.5 1.9 - 2.0 .3 -.8 .4 2.8 -.8 1.2 4.3 -3.9 10 11 FHLB special issue................... .6 — .9 .3 -.2 * * .3 .8 - .8 .2 -.2 . 1 2.0 11 12 Federal Reserve System................ 3.5 4.8 3.8 4.2 5.0 4.0 4.2 -.4 9.2 1.1 5.4 7.9 5.6 15.7 12 13 Foreign........................................... -2.4 2.1 -.5 - 1.8 9.1 -4.5 - 1.8 2.7 -3.7 8.0 8.2 4.7 15.5 26.1 13 14 -3.6 9.3 3.4 -9.5 9.0 -16.2 -7.2 -9.5 -5.2 .5 6.8 11.0 17.6 3.5 14 15 Direct......................................... -3.4 6.3 2.2 -9.3 5.8 -14.4 - 8.8 -7.6 - 6.2 -.7 6.8 8.9 8.0 3.2 15 16 -.2 3.0 1.3 -.3 3.2 - 1.8 1.6 -1.9 1.0 1.3 * 2.1 9.6 .3 16 17 Nonbank finance........................... .4 -1.9 2.2 -.8 3.7 -2.4 4.8 -4.7 -.8 -.7 9.8 2.2 3.7 3.3 17 18 Direct......................................... -.2 - 2.2 .4 -2.4 1.5 -4.4 2.7 -7.3 -.6 -3.2 7.6 -.7 2.5 -7.8 18 19 Agency issues............................. .5 .3 1.8 1.6 2.2 2.0 2.0 2.6 -.2 2.6 2.2 2.9 1.2 11.1 19 20 8.5 -1.7 7.7 15.0 -6.9 21.8 .9 23.2 14.1 6.5 - 8.0 - 6.8 -19.2 -50.1 20 21 Savings bonds—Households... .6 1.0 .4 -.4 .3 -.4 -.4 -.8 .1 -.9 -.2 .5 1.7 1.9 21 22 Direct excl. savings bonds........ 3.3 -3.0 4.1 8.7 -10.5 16.1 -5.1 18.8 5.0 -2.7 -9.2 - 10.8 -19.2 -35.9 22 23 Agency issues............................. 4.7 .4 3.2 6.7 3.4 6.2 6.4 5.2 9.1 10.1 1.4 3.5 -1.7 -16.1 23 Private securities 1 Total net issues, by sector................ 18.5 28.2 23.9 27.7 42.3 30.4 28.8 25.1 26.3 31.3 41.0 39.3 57.7 67.7 1 2 State and local governments........ 5.7 8.7 9.6 8.1 11.8 12.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 2 3 Nonfinancial corporations............ 11.4 17.0 12.1 16.4 27.0 14.7 14.9 16.1 19.8 20.2 28.9 25.7 33.4 35.2 3 4 Finance companies....................... .8 1.0 .8 1.6 2.5 1.4 2.2 1.4 1.3 1.3 2.3 2.8 3.8 4.1 4 5 Commercial banks........................ .1 .2 .2 .1 .1 .1 .3 * -.1 .2 * * * 1.4 5 6 Rest of the world.......................... .5 1.3 1.3 1.5 .9 1.5 2.0 2.0 .5 .7 -.4 2.0 1.3 1.4 6 7 Net purchases.................................... 18.5 28.2 23.9 27.7 42.3 30.4 28.8 25.1 26.3 31.3 41.0 39.3 57.7 67.7 7 8 Households.................................... 3.2 - 1.8 - 1.2 3.0 8.1 3.5 - 1.8 5.2 5.3 6.9 9.8 2.5 13.3 -.8 8 9 Nonfinancial corporations............ 1.0 -.2 - 1.1 5.1 1.4 6.7 3.1 5.5 5.0 .6 2.0 1.6 1.2 6.1 9 10 State and local governments........ 1.1 1.9 -.4 2.6 .2 4.9 3.0 .9 1.4 .4 .7 -.8 .6 1.9 10 11 Commercial banks........................ 1.9 9.8 8.9 .3 10.8 1.6 2.4 - 1.1 -1.7 5.0 8.9 14.5 14.7 21.4 11 12 Mutual savings banks................... .3 2.3 1.6 .6 1.7 1.1 1.0 * .2 1.2 2.0 1.2 2.5 8.3 12 13 Insurance and pension funds....... 12.9 16.6 17.6 16.8 18.7 16.3 20.5 15.0 15.4 17.0 20.6 13.9 23.2 26.2 13 14 Finance n.e.c.................................. - 2.2 -.9 -3.6 - 2.8 .1 -7.7 -.2 - 1.1 - 2.2 -.3 -3.5 4.3 -.1 3.7 14 15 Security brokers and dealers... .1 .2 -.9 .2 .7 .2 .9 2.3 - 2.6 * .2 5.2 -2.7 1.8 15 16 Investment companies, net....... -2.4 - 1.1 - 2.8 -3.0 -.6 -7.9 - 1.2 -3.4 .3 -.3 -3.7 - 1.0 2.5 1.9 16 17 Portfolio purchases................ 1.4 1.5 1.9 2.7 1.8 -.2 3.6 2.7 4.6 1.3 - 1.0 2.4 4.5 2.1 17 18 Net issues of own shares.... 3.7 2.6 4.7 5.7 2.4 7.7 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 18 19 Rest of the world......................... .3 .6 2.3 2.1 1.4 3.9 .9 .7 2.9 .6 .5 2.1 2.3 .9 19 Bank loans n.e.c. 1 9.0 7.5 15.7 17.8 2.1 18.0 24.0 11.1 17.6 5.2 10.3 5.0 - 11.8 10.5 1 2 Households.................................... .4 2.1 3.1 2.4 .8 2.9 4.2 .9 1.5 2.3 - 1.1 1.2 1.0 3.5 2 3 Nonfinancial business................... 10.1 7.7 10.6 13.5 2.3 13.9 14.4 12.3 12.8 4.6 10.4 .9 -6.7 .4 3 4 Rest of the world.......................... -.2 -.2 -.3 -.2 -.4 .2 .6 -1.5 -.1 .6 -.3 -.2 -1.9 .5 4 Digitized for FRA5SERF inancial sectors........................... -1.3 - 2.1 2.3 2.1 -.5 .9 4.9 -.6 3.4 -2.3 1.2 3.0 -4.1 6.2 5 http://fraser.stlouisfed.org/ Federal Reserve NBoatnek.— oDf aStat. rLevoiuseids 1968-70. For other notes see p. A-73.3.

AUGUST 1971 □ FLOW OF FUNDS A 73.3 Notes to Table 2 consists of life companies, fire and casualty companies, private pension Funds raised, by type and sector. Credit flows included here are the funds, and State and local govt, retirement funds. Finance n.e.c. is finance amounts shown on lines 25-34 of Table 1 by households, business, govern­ companies, open-end investment companies, security brokers and dealers, ments, and foreigners. All funds raised by financial sectors are excluded. agencies of foreign banks, and banks in U.S. possessions. U.S. Govt, budget issues (line 4) are loan participation certificates is­ Sources of funds supplied to credit markets. In this section lending by sued by CCC, Export-Import Bank, FNMA, and GNMA, together with financial sectors is replaced by sources of funds to financial sectors. security issues by FHA, Export-Import Bank, and TV A. Issues by federally Foreign funds at banks are deposits and foreign branch claims on U.S. sponsored credit agencies are excluded as borrowing by financial institu­ home offices. Sources n.e.c. consist mainly of retained income and mis­ tions. Such issues are in line 5 of the next section of the table and in U.S. cellaneous liabilities of financial sectors less their miscellaneous assets. Govt, securities in Table 3. Corporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corpora­ Notes to Table 3 tions plus bankers’ acceptances. Demand deposits and currency. Lines 5-8 are holder record; line 9 is Funds advanced directly in credit markets. Net purchases, by sector, of the difference between holder and bank record. credit instruments shown in the section above. Financial sectors’ purchases U.S. Government securities. Includes issues by sponsored credit agencies are shown net of their own funds raised in credit-market forms—securities not consolidated into the U.S. Govt, sector and not included in funds and loans on lines 25-34 of Table 1. Lines 3, 7, 10,14, and 15 reflect such raised in Table 2. Sponsored agencies are listed in notes to Table 4, p. adjustments. In addition, security credit is included in funds advanced as A-73.9. Loan participations include FNMA, GNMA, Export-Import an asset and deducted from funds advanced as a liability, netting to zero Bank, and CCC certificates. Where not shown separately, loan participa­ in the totals. Security credit assets are in lines 8, 13, and 14 and subtracted tions are grouped with agency issues. All figures are changes in par values in line 19. Security credit liabilities are in line 19 and subtracted in lines of holdings. 14 and 19. Private securities. Total excludes open-end investment company shares, Lines 3-5 cover federally sponsored agencies. Commercial banks include which are deducted on line 18. bank affiliates not consolidated in bank reports. Savings institutions are Bank loans n.e.c. Includes lending by bank affiliates. savings and loan assns., mutual savings banks, and credit unions. Insurance 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III IV i j II III IV I Households, personal trusts, and nonprofit organizations 1 Personal income................................ 587.2 629.3 688.9 750.3 803.6 726.8 743.1 759.3 772.2 784.3 803.8 809.8 816.7 834.7 1 2 Less: Personal taxes & nontaxes... 75.4 83.0 97.9 116.2 115.9 113.6 117.2 116.1 117.7 116.7 118.0 113.5 115.2 112.7 2 3 Personal outlays.................... 479.3 506.0 551.2 596.3 633.7 580.4 592.4 600.9 611.4 621.4 631.5 638.9 643.0 663.2 3 4 Equals: Personal saving, NIA basis. 32.5 40.4 39.8 37.9 54.1 32.8 33.4 42.3 43.1 46.2 54.2 57.4 58.5 58.8 4 5 Plus: Credits from Govt, insur.1. 5.3 5.3 5.9 6.2 9.0 5.7 8.4 7.2 3.7 6.6 13.1 7.5 8.9 8.8 5 6 Capital gains dividends2 . . 1.3 1.7 2.5 2.5 .9 5.0 1.9 2.2 1.1 1.4 1.2 .8 .2 .4 6 7 Net durables in consumpt.. 15.2 12.4 16.7 15.5 8.4 17.6 16.8 14.1 13.6 10.4 10.7 9.2 3.1 15.1 7 8 54.3 59.8 64.8 62.2 72.4 61.1 60.5 65.8 61.5 64.6 79.2 74.9 70.7 83.2 8 9 Plus: Capital consumption......... 64.3 69.9 77.2 84.8 91.2 82.0 84.1 85.8 87.3 89.0 90.8 92.1 92.8 93.8 9 10 On owner-occ. homes....... 7.4 7.8 8.3 8.8 9.2 8.6 8.7 8.9 9.0 9.1 9.2 9.3 9.4 9.6 10 11 On nonprofit pi. and eq.. . 1.3 1.4 1.5 1.6 1.7 1.6 1.6 1.6 1.6 1.6 1.7 1.7 1.7 1.7 11 12 On consumer durables.... 55.6 60.7 67.4 74.4 80.3 71.8 73.7 75.3 76.7 78.2 80.0 81.1 81.7 82.4 12 13 Equals: Gross savings..................... 118.6 129.7 142.0 147.0 163.5 143.0 144.6 151.6 148.8 153.6 170.0 167.0 163.5 177.0 13 14 Gross investment............................... 119.8 132.0 140.5 141.2 162.9 143.0 133.6 145.7 143.0 148.9 168.7 166.2 167.3 183.2 14 15 Capital expend, (net of sales).... 94.2 94.6 109.7 116.7 112.9 116.1 119.3 116.5 114.9 113.8 115.5 112.8 109.2 124.5 15 16 Residential construction........... 18.9 17.0 21.1 21.6 18.9 21.8 23.8 21.7 19.3 19.7 19.4 17.3 19.2 21.6 16 17 Consumer durable goods.......... 70.8 73.1 84.0 89.9 88.6 89.5 90.6 89.4 90.3 88.6 90.7 90.4 84.9 97.6 17 18 Plant and equip, (nonprofit). .. 4.5 4.5 4.5 5.1 5.3 4.9 5.0 5.3 5.4 5.5 5.4 5.2 5.1 5.3 18 19 Net finan. investment..................... 25.6 37.3 30.8 24.5 50.0 26.9 14.3 29.2 28.1 35.2 53.2 53.4 58.1 58.7 19 20 Net acquis, of financial assets. . 49.3 61.1 65.6 55.2 70.6 56.5 50.1 56.6 58.0 53.8 71.7 80.0 76.8 84.8 20 21 Demand dep. and curr......... 3.1 9.4 11.1 5.9 4.7 -.9 10.2 9.5 5.1 5.4 7.4 5.0 1.0 5.8 21 22 Savings accounts................... 19.1 33.7 28.6 13.3 32.2 24.7 16.1 5.8 6.6 5.0 30.7 44.2 49.1 101.3 22 23 At commercial banks........ 11.9 17.1 15.7 5.2 15.8 11.3 7.1 * 2.4 .5 15.5 22.5 24.5 50.7 23 24 At savings institutions....... 7.2 16.6 12.9 8.1 16.5 13.4 9.0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 24 25 Credit market instruments... 12.9 4.2 13.2 22.2 13.1 25.1 7.7 27.0 29.0 31.5 8.9 7.4 4.8 -37.8 25 26 U.S. Govt, securities......... 7.3 .9 5.2 13.2 .3 14.1 2.2 18.6 17.9 14.8 -3.3 4.1 -14.5 -50.9 26 27 State and local oblig.......... 2.1 -1.3 .9 1.5 -1.5 4.1 2.7 -.8 -.2 1.2 -.4 -9.5 2.7 -3.5 27 28 Corporate and fgn. bonds . 2.0 3.6 5.4 5.4 12.2 4.6 1.4 6.5 9.2 12.3 10.2 11.3 14.9 14.7 28 29 Mortgages........................... 1.4 1.0 1.8 2.1 2.2 2.2 1.4 2.7 2.2 3.1 2.3 1.5 1.7 1.9 29 30 Investment co. shares............ 3.7 2.6 4.7 5.7 2.4 7.7 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 30 31 Other corp. shares................. -4.7 -6.7 - 12.2 -9.5 -5.0 -12.9 -10.7 -6.7 -7.9 -8.3 - 2.8 -2.7 -6.4 - 12.2 31 32 Life insurance reserves.......... 4.6 4.8 4.5 4.9 4.9 4.8 4.9 5.0 4.9 4.9 4.9 4.9 4.8 4.8 32 33 Pension fund reserves............ 13.4 14.1 15.3 15.4 18.6 11.8 18.7 16.1 15.0 15.3 21.4 16.7 20.9 22.8 33 34 Net invest, in noncorp. bus... -4.1 -3.6 - 2.2 -3.9 -2.3 -4.6 -4.2 -4.3 -2.7 - 2.6 - 2.1 -2.5 - 2.0 -4.4 34 35 Security credit........................ * 1.1 .7 -.8 -.5 -1.5 - 1.0 - 1.8 1.1 -1.3 - 1.8 1.2 * 1.6 35 36 Miscellaneous........................ 1.2 1.5 1.8 2.1 2.5 2.3 3.6 -.1 2.6 2.3 2.5 2.5 2.5 2.6 36 37 Net increase in liabilities........... 23.6 23.7 34.8 30.7 20.6 29.6 35.8 27.3 29.9 18.6 18.5 26.7 18.7 26.1 37 38 Credit mkt. instruments........ 23.2 19.7 31.8 32.2 21.6 33.0 36.0 31.5 28.2 22.8 21.5 24.8 17.2 22.7 38 39 Home mortgages............... 12.3 10.5 14.9 16.2 12.5 16.5 17.1 16.3 14.9 11.0 12.2 13.7 13.0 11.9 39 40 Other mortgages................ 1.3 1.2 1.1 1.3 1.4 1.2 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.4 40 41 Instalment cons, credit. ... 6.2 3.4 9.0 8.3 3.0 8.5 9.9 8.0 7.1 4.1 4.8 4.4 -1.3 2.7 41 42 Other consumer credit.... 1.0 1.2 2.1 1.0 1.3 1.7 .9 1.0 .4 .6 1.3 1.9 1.6 1.3 42 43 Bank loans n.e.c................. .4 2.1 3.1 2.4 .8 2.9 4.2 .9 1.5 2.3 - 1.1 1.2 1.0 3.5 43 44 Other loans 3....................... 2.0 1.3 1.7 3.0 2.6 2.1 2.7 4.1 3.0 3.4 3.0 2.3 1.6 1.9 44 45 Security credit....................... -.2 3.3 2.1 -2.5 -1.9 -4.2 - 1.2 -5.1 .7 -5.2 -3.9 .9 .6 2.5 45 46 Trade debt............................. .3 .4 .5 .5 .6 .5 .5 .5 .5 .5 .5 .6 .6 .6 46 47 Miscellaneous......................... .4 .3 .4 .4 .4 .4 .4 .4 .5 .4 .4 .4 .4 .3 47 48 Discrepancy (13-14)......................... - 1.2 - 2.2 1.5 5.8 .6 * 11.0 5.9 5.8 4.6 1.4 .8 -3.8 - 6.2 48 Note.—Data revised 1968-70. For other notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73.4 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III IV I II III IV I Nonfinancial business—Total 1 Income before taxes 1....................... 139.1 136.2 142.4 138.4 129.7 142.2 140.5 137.5 133.3 130.9 132.1 130.1 125.5 135.8 1 2 Gross saving...................................... 77.7 78.4 80.0 78.9 82.0 79.8 79.3 80.4 77.5 81.6 82.1 82.3 82.6 88.5 2 3 Gross investment.............................. 69.6 68.3 73.7 73.6 80.2 73.0 73.2 75.5 73.9 80.2 82.8 79.7 78.7 76.2 3 4 Capital expenditures................... 97.0 94.0 99.0 109.2 109.1 105.8 106.5 112.9 111.5 104.1 107.4 114.2 110.8 114.8 4 5 Fixed investment........................... 82.2 85.8 91.9 101.8 106.3 99.2 99.7 102.5 105.8 103.7 105.3 109.1 107.1 111.6 5 6 Business plant & equipment. . . 76.1 77.8 82.9 91.6 94.8 88.3 89.8 93.5 95.0 93.4 94.8 97.6 93.6 96.8 6 V 1-4 family resident, const. 2.... -.7 2.0 .9 -.1 1.0 1.2 -.4 -1.4 .2 -.1 -.6 1.8 3.0 3.8 7 8 Other residential....................... 6.8 6.1 8.1 10.3 10.4 9.7 10.3 10.5 10.7 10.4 11.2 9.7 10.5 11.0 8 9 Change in inventories 3................ 14.8 8.2 7.1 7.4 2.8 6.6 6.8 10.4 5.7 .4 2.1 5.1 3.7 3.2 9 10 Net financial investment.................... -27.4 -25.7 -25.3 -35.6 -28.9 -32.9 -33.3 -37.4 -37.7 -23.9 -24.6 -34.5 -32.2 -38.5 10 11 Financial uses of funds, net........... 16.5 15.8 27.4 29.6 21.2 40.6 26.6 28.6 22.6 37.0 25.1 8.3 14.9 26.9 11 12 Financial sources of funds, net. . .. 43.9 41.5 52.6 65.2 50.1 73.5 59.9 66.0 60.3 60.9 49.7 42.8 47.1 65.5 12 13 Corporate share issues.............. 1.2 2.3 -.8 4.3 6.8 .1 2.4 5.6 9.1 6.3 6.2 5.0 9.6 8.9 13 14 Credit market instruments........ 32.7 35.6 39.6 45.4 41.5 47.3 48.9 43.8 40.8 37.1 48.0 40.7 40.4 51.6 14 15 Corporate bonds................... 10.2 14.7 12.9 12.1 20.3 14.6 12.5 10.5 10.7 13.9 22.7 20.7 23.8 26.4 15 16 Home mortgages................... - 1.0 1.1 .3 -.6 .3 -.1 -.5 -.7 - 1.0 -.3 - 1.1 1.4 1.2 2.7 16 17 Other mortgages................... 9.7 9.2 11.0 11.0 11.7 11.0 10.9 10.5 11.6 9.7 9.6 12.3 15.1 14.6 17 18 Bank loans n.e.c.................... 10.1 7.7 10.6 13.5 2.3 13.9 14.4 12.3 12.8 4.6 10.4 .9 -6.7 .4 18 19 Other loans 4......................... 3.6 2.8 4.8 9.3 7.0 7.9 11.6 11.2 6.7 9.2 6.4 5.3 7.0 7.7 19 20 Trade debt................................. 7.4 6.4 10.2 19.7 4.3 21.6 20.7 23.5 12.8 14.5 * 2.0 .7 6.0 20 21 Other liabilities......................... 2.7 -2.7 3.7 -4.1 -2.5 4.4 - 12.1 -7.0 -2.3 2.9 -4.5 -4.9 -3.6 - 1.0 21 22 Discrepancy (2-3)............................. 8.0 10.1 6.3 5.4 1.8 6.9 6.1 4.8 3.6 1.4 -.7 2.6 3.9 12.2 22 Farm and nonfarm noncorporate business5 1 Net income 1..................................... 69.8 71.2 73.5 76.4 76.5 76.0 76.5 76.5 76.7 77.5 77.2 75.6 75.7 76.2 1 2 Gross saving 6................................... 16.5 16.9 18.3 19.5 20.5 20.1 19.8 19.7 19.6 22.0 20.2 20.2 20.2 21.5 2 3 Gross investment.............................. 16.5 16.9 18.3 19.5 20.5 20.1 19.8 19.7 19.6 22.0 20.2 20.2 20.2 21.5 3 4 Capital expenditures................... 19.9 22.1 22.8 24.3 24.9 24.6 23.6 24.6 24.2 24.0 24.9 25.8 24.8 31.3 4 5 Fixed investment........................... 19.5 21.1 22.2 23.4 24.7 23.4 23.0 22.5 24.5 23.9 24.0 24.9 25.9 28.4 5 6 Change in inventories 3................ .4 .9 .6 .9 .2 1.2 .6 2.1 -.2 .1 .9 .9 - 1.1 2.9 6 7 Net financial investment.................... -3.4 -5.1 -4.5 -4.8 -4.3 -4.5 -3.8 -5.0 -4.6 - 2.0 -4.7 -5.6 -4.7 -9.8 7 8 Financial uses of funds, net........... 1.1 1.2 1.8 1.8 1.7 1.4 1.9 2.3 1.5 1.1 1.5 2.4 1.9 1.1 8 9 Financial sources of funds, net.... 4.5 6.3 6.3 6.5 6.1 5.9 5.7 7.3 6.1 3.1 6.2 8.1 6.5 10.9 9 10 Credit market instruments........ 9.0 8.5 8.5 10.5 9.5 10.3 10.2 12.0 8.9 6.5 8.9 12.1 10.8 13.4 10 11 Mortgages.............................. 4.5 5.8 5.5 5.7 6.7 5.9 6.3 5.6 4.8 5.1 5.1 8.0 8.4 8.6 11 12 Bank loans n.e.c.................... 2.2 1.3 1.8 2.5 1.1 1.6 2.1 3.5 2.2 - 1.0 2.1 2.4 .9 1.1 12 13 Other loans 4-?...................... 2.2 1.4 1.3 2.4 1.8 2.9 1.9 2.8 1.9 2.4 1.7 1.7 1.4 3.6 13 14 Trade debt, net.......................... -.4 1.4 * -.1 - 1.2 .1 -.4 -.4 -.2 -.8 -.7 -1.5 -2.3 1.8 14 15 Proprietors’ net investment 8... -4.1 -3.6 - 2.2 -3.9 -2.3 -4.6 -4.2 -4.3 -2.7 - 2.6 - 2.1 -2.5 - 2.0 -4.4 15 Nonfinancial corporate business 1 Profits before tax.............................. 71.1 66.1 72.2 67.5 57.7 72.3 70.2 64.2 63.2 59.2 59.2 60.0 52.4 63.1 1 2 Less: Profits tax accruals............... 30.0 28.3 34.0 33.3 27.0 35.6 34.6 31.7 31.2 27.6 27.7 28.1 24.7 30.5 2 3 Net dividends paid............... 18.1 18.8 20.8 20.9 21.0 20.8 20.8 20.9 21.0 21.0 21.2 21.2 20.8 21.3 3 4 Equals: Undistributed profits.......... 22.9 19.0 17.5 13.3 9.6 15.9 14.8 11.6 11.1 10.6 10.3 10.7 6.9 11.3 4 5 Plus: Foreignbranch profits, net........ 1.8 2.1 2.5 2.5 2.6 2.5 2.4 2.5 2.5 2.8 2.5 2.7 2.7 2.7 5 6 Inv. valuation adj..................... - 1.8 - 1.1 -3.3 -5.5 -4.5 - 6.0 -6.3 -3.2 -6.7 -5.8 -4.2 -5.5 - 2.6 -3.5 6 7 Capital consumption.............. 38.2 41.5 45.1 49.2 53.8 47.5 48.6 49.8 51.0 52.1 53.3 54.2 55.4 56.4 7 8 Equals: Gross internal funds........... 61.2 61.5 61.7 59.5 61.5 59.8 59.5 60.7 57.9 59.7 61.8 62.1 62.4 66.9 8 9 Gross investment (10+15)............... 53.1 51.3 55.4 54.1 59.7 52.9 53.4 55.9 54.2 58.2 62.6 59.5 58.5 54.7 9 10 Capital expenditures................. 77.1 72.0 76.1 84.9 84.2 81.3 82.9 88.3 87.3 80.1 82.5 88.3 86.0 83.5 10 11 Fixed investment........................... 62.7 64.7 69.7 78.4 81.6 75.8 76.6 80.0 81.4 79.8 81.3 84.1 81.2 83.2 11 12 Plant and equipment................. 61.6 62.5 67.4 75.6 78.3 72.6 74.0 77.8 78.1 77.0 78.5 80.6 76.9 78.3 12 13 Residential construction........... 1.1 2.3 2.3 2.8 3.3 3.2 2.6 2.2 3.3 2.8 2.8 3.5 4.3 4.8 13 14 Change in inventories 3................ 14.4 7.3 6.4 6.5 2.6 5.5 6.2 8.3 5.9 .3 1.2 4.2 4.8 .3 14 15 Net financial investment.................... -24.0 - 20.6 -20.7 -30.8 -24.5 -28.3 -29.4 -32.4 -33.1 -21.9 -19.9 -28.8 -27.5 -28.8 15 16 Financial uses of funds, net........... 15.5 14.6 25.6 27.8 19.5 39.3 24.7 26.2 21.2 35.9 23.6 5.9 13.1 25.8 16 17 Liquid assets.............................. 1.9 2.1 8.6 1.3 8.9 3.3 -2.7 .1 4.6 11.8 14.0 1.4 8.5 2.6 17 18 Demand dep. and curr.......... .7 .7 1.6 -.9 - 1.0 3.8 -5.7 -4.4 2.9 -2.4 -2.9 . 6 .8 .3 18 19 Time deposits......................... -.7 2.9 1.9 -9.8 12.8 -14.4 -9.5 - 11.0 -4.2 .5 6.1 32.3 12.2 3.0 19 20 U.S. Govt, securities............. - 1.2 - 2.8 1.7 -1.7 -3.2 4.5 - 1.0 - 2.2 -8.0 -5.4 1.3 -3.9 -4.5 .8 20 21 Open market paper............... 2.0 1.5 4.4 8.6 - 1.1 2.7 10.5 12.2 8.9 18.6 7.4 -29.1 - 1.2 -7.6 21 22 State and local oblig.............. 1.0 -.2 - 1.1 5.1 1.4 6.7 3.1 5.5 5.0 .6 2.0 1.6 1.2 6.1 22 23 Consumer credit........................ 1.2 .9 1.7 1.3 1.4 1.7 1.0 1.5 .8 1.5 1.4 1.7 1.1 1.7 23 24 Trade credit............................... 11.3 7.7 13.9 17.3 6.2 19.1 16.9 18.7 14.6 18.6 4.8 2.0 -.7 11.6 24 25 Other financial assets 9............. 1.0 3.8 1.4 8.0 3.0 15.1 9.6 5.9 1.2 3.9 3.4 .7 4.2 10.0 25 26 Financial sources of funds, net.... 39.4 35.2 46.3 58.6 44.0 67.6 54.2 58.7 54.2 57.8 43.5 34.7 40.5 54.6 26 27 Net new share issues................. 1.2 2.3 -.8 4.3 6.8 .1 2.4 5.6 9.1 6.3 6.2 5.0 9.6 8.9 27 28 Credit market instruments........ 23.7 27.0 31.1 34.8 32.0 37.0 38.7 31.8 31.9 30.6 39.1 28.6 29.6 38.2 28 29 Corporate bonds................... 10.2 14.7 12.9 12.1 20.3 14.6 12.5 10.5 10.7 13.9 22.7 20.7 23.8 26.4 29 30 Mortgages.............................. 4.2 4.5 5.8 4.8 5.3 5.0 4.2 4.2 5.7 4.3 3.4 5.8 7.8 8.6 30 31 Bank loans n.e.c..................... 7.9 6.4 8.8 11.0 1.2 12.4 12.3 8.8 10.6 5.6 8.3 -1.5 -7.7 -.8 31 32 Other loans 1 o....................... 1.4 1.4 3.6 7.0 5.2 5.0 9.7 8.4 4.8 6.8 4.7 3.6 5.6 4.1 32 33 Profit tax liability...................... .2 -4.7 2.1 -1.9 -3.3 5.7 -6.3 -4.7 - 2.6 -2.5 -4.6 -3.0 -3.3 .9 33 34 Trade debt................................. 7.8 4.9 10.1 19.7 5.5 21.5 21.0 23.9 13.0 15.3 .7 3.5 3.0 4.1 34 35 Other liabilities......................... 6.5 5.6 3.8 1.7 3.1 3.3 - 1.6 2.0 2.9 8.0 2.2 .6 1.7 2.4 35 36 Discrepancy (8-9)............................. 8.0 10.1 6.3 5.4 1.8 6.9 6.1 4.8 3.6 1.4 -.7 2.6 3.9 12.2 36 Digitized for FRASER http://fraser.stlouisNfeodte.o.—rgD/ ata revised 1968-70. For other notes see p. A-73.9. Federal Reserve Bank of St. Louis

AUGUST 1971 □ FLOW OF FUNDS A 73.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 1 I 11 111 IV I II III IV I State and local governments-—General funds 1 1 Net surplus, NIA basis..................... 1.3 - 1.6 -.3 .1 .5 -.9 - 1.0 .5 1.8 1.1 1.9 .2 -1.3 -.3 1 2 Less: Retirement cr. to households . 4.0 3.9 4.6 4.6 6.6 3.9 7.1 4.8 2.8 5.2 9.5 5.7 5.9 6.7 2 3 Equals: Gross saving....................... -2.7 -5.5 -5.0 -4.5 - 6.0 -4.8 - 8.1 -4.2 - 1.0 -4.0 -7.6 -5.5 -7.1 -7.0 3 4 Net financial investment.................... - 2.1 -5.6 -5.5 -6.3 -6.3 -7.1 - 10.1 -5.6 -2.4 -7.2 -5.7 -4.4 -7.8 15.8 4 5 Net acq. of financial assets............ 4.8 3.8 5.0 2.7 6.5 6.9 .1 .7 3.2 2.7 5.1 5.8 12.2 10.7 5 6 Currency and demand deposits. -.1 - 1.0 .7 3.2 1.2 2.5 3.4 3.9 2.9 -.3 1.0 1.1 3.1 3.6 6 7 Time deposits............................ 1.3 2.4 3.2 -5.9 9.9 -3.7 -5.0 -10.3 -4.6 6.4 10.3 13.4 9.6 4.9 7 8 Credit market instruments........ 3.4 2.1 .4 6.1 -3.8 8.1 2.9 7.7 5.6 -2.5 -5.3 -7.8 .4 1.9 8 9 U.S. Government securities.. 2.4 .2 .8 3.5 -4.0 3.2 -.2 6.8 4.2 -2.9 - 6.0 -7.0 -.2 * 9 10 Direct................................. 2.2 -.4 -.3 1.8 -3.1 2.1 - 1.0 3.4 2.8 -3.2 -3.5 -5.4 -.2 .9 10 11 U.S. Govt, agency sec....... .1 .6 1.0 1.7 -.9 1.1 .9 3.4 1.4 .3 -2.5 -1.5 * -.9 11 12 State and local securities---- * * .3 .4 .1 .2 .2 .6 .2 .7 .3 .5 .1 12 13 Corporate bonds................... 1.1 1.9 -.4 2.3 -.2 4.8 2.8 .8 .8 .2 * - 1.1 * 1.8 13 14 Home mortgages................... * * .1 * * * * * * * * * * 14 15 Tax receivables.......................... .2 .3 .7 -.6 -.9 -.1 - 1.1 -.7 -.7 -.9 -.9 -.9 -.9 .2 15 16 Net increase in liabilities............. 6.9 9.5 10.5 9.0 12.8 13.9 10.2 6.3 5.6 9.9 10.9 10.2 20.0 26.5 16 17 Credit mkt. borrowing............. 6.4 8.8 9.9 8.5 12.2 13.4 9.7 5.8 5.1 9.4 10.4 9.7 19.5 26.0 17 18 State and local obligations . .. 5.7 8.7 9.6 8.1 11.8 12.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 18 19 Short-term......................... .7 1.8 .1 3.1 3.8 4.3 2.5 2.9 2.7 3.0 3.2 1.9 7.2 7.4 19 20 Other.................................. 5.1 6.8 9.4 5.0 8.0 8.5 7.0 2.7 2.0 5.9 7.0 7.0 12.0 18.2 20 21 U.S. Govt, loans................... .6 .2 .3 .4 .4 .5 .3 .3 .5 .5 .2 .8 .2 .4 21 22 Trade debt................................. .5 .6 .6 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 22 23 Discrepancy (7-8)............................. -.7 .1 .5 1.8 .2 2.3 2.0 1.4 1.5 3.2 - 1.8 - 1.1 .7 8.8 23 U.S. Government 2 1 Total receipts, NIA basis................. 142.5 151.2 175.0 196.9 191.5 195.6 199.3 195.8 196.8 191.6 193.8 191.3 189.3 197.2 1 2 Personal taxes............................... 61.7 67.5 79.7 94.9 92.2 93.6 96.5 94.0 95.2 93.8 94.5 89.7 91.0 87.6 2 3 Corp. profits tax accruals............. 32.1 30.7 36.7 36.3 30.6 38.2 37.5 34.9 34.5 30.6 30.9 31.9 29.0 34.0 3 4 Indirect taxes................................. 15.7 16.3 18.0 19.0 19.3 18.4 19.0 19.4 19.1 19.0 19.1 19.7 19.4 20.6 4 5 Insurance receipts......................... 33.0 36.7 40.7 46.8 49.3 45.3 46.3 47.4 48.0 48.2 49.2 50.0 49.8 55.0 5 6 Total expenditures, NIA basis........ 142.8 163.6 181.5 189.5 205.1 186.5 187.6 190.7 193.4 196.1 207.9 206.7 209.8 213.2 6 7 Goods and services....................... 77.8 90.7 98.8 99.2 97.2 99.2 97.7 100.3 99.5 100.2 96.8 96.1 95.9 96.7 7 8 Grants and donations................... 29.0 30.7 34.1 37.2 45.2 35.6 36.9 36.9 39.5 39.7 46.4 46.8 48.1 47.5 8 9 Net interest.................................... 9.5 10.2 11.7 13.1 14.6 12.4 12.8 13.3 14.0 14.3 14.3 15.0 14.8 14.0 9 10 Insurance benefits......................... 26.4 32.0 36.9 40.0 48.1 39.3 40.2 40.2 40.4 41.9 50.5 48.9 51.0 55.0 10 11 Net surplus, NIA basis..................... -.2 -12.4 -6.5 7.3 -13.6 9.1 11.7 5.1 3.4 -4.5 -14.1 -15.5 -20.5 -15.9 11 12 Less: Insur. credits to households 3 . 1.4 1.4 1.3 1.6 2.5 1.8 1.2 2.4 .9 1.5 3.6 1.8 3.0 2.1 12 13 Equals: Gross saving....................... - 1.6 -13.8 -7.8 5.7 -16.1 7.3 10.4 2.7 2.5 - 6.0 -17.7 -17.3 -23.4 -18.1 13 14 Net financial investment.................... -.1 -13.1 -8.4 5.4 -15.2 6.9 10.2 2.6 2.0 -4.8 -18.9 -14.0 -23.1 -18.2 14 15 Net acquis, of finan. assets............ 5.4 2.9 7.4 3.0 .6 2.9 -.5 4.0 5.6 * -.6 .3 2.9 -16.7 15 16 Demand deposits & currency. . -.1 1.0 -1.7 1.1 2.5 -3.0 .9 2.6 4.0 .6 2.5 .7 6.4 -19.1 16 1 18 7 Cr A ed g i e t n m cy a r s k e e c t u i r n it s ie tr s u 4 m ... e .. n .. t . s .. . . . . . . . . . . . . . . . 4 1 . . 9 3 _ 4 . .6 l 4.. 9 l — 2 1 . . 5 3 — 3. . 2 1 — 2 1 . . 5 1 — 2 1 . .7 2 — 3 . . 7 8 — 2 1 . . 3 0 3.. 9 1 3.6 * 3.. 5 1 — 1. . 8 6 4.3 1 1 7 8 19 .8 .9 1.1 .7 .3 .'5 .8 '.7 .8 .3 .5 .3 !3 -.2 19 20 Other loans............................ 2.8 3.8 3.7 3.1 3.0 3.1 3.2 3.8 2.4 3.5 3.1 3.1 2.1 4.5 20 Excess of tax accruals 21 Over receipts......................... -.7 -4.4 1.7 -2.9 - 2.8 2.4 -7.3 -4.3 -2.3 - 1.1 -4.2 -1.7 -4.1 2.1 21 22 Other financial assets 5.............. 1.3 1.8 2.5 2.2 -2.3 1.0 4.1 2.1 1.6 -3.3 -2.5 - 2.1 -1.3 -4.0 22 23 Net increase in liabilities............... 5.5 16.0 15.9 -2.5 15.9 -4.0 -10.7 1.4 3.5 4.9 18.2 14.3 26.0 1.5 23 24 U.S. Government securities.... 3.5 13.0 13.4 -3.6 12.8 -5.4 -9.5 -.7 1.2 3.0 16.0 12.2 20.0 - 1.6 24 25 Savings bonds—households.. .6 1.0 .4 -.4 .3 -.4 -.4 -.8 .1 -.9 -.2 .5 1.7 1.9 25 26 Direct excl. savings bonds. .. 1.8 7.9 9.9 -.9 12.6 -5.4 -8.4 5.6 4.8 4.4 18.3 10.9 16.8 -.6 26 27 Budget agency sec.6.............. 1.2 4.1 3.1 -2.4 -.1 .5 -.7 -5.6 -3.7 -.5 - 2.0 .8 1.5 -2.9 27 28 Life & retirement reserves........ 1.4 1.4 1.3 1.6 2.5 1.8 1.2 2.4 .9 1.5 3.6 1.8 3.0 2.1 28 29 .6 1.6 1.1 -.4 .6 -.4 -2.5 -.3 1.4 .4 -1.4 .3 3.1 .9 29 30 Discrepancy (13-14)......................... -1.5 -.7 .6 .3 -.9 .4 .2 * .5 - 1.2 1.2 -3.3 -.3 .2 30 31 Memo: Corp. tax receipts, net........ 32.8 35.1 35.0 39.2 33.4 35.8 44.7 39.3 36.8 31.7 35.1 33.6 33.1 31.9 31 Federally sponsored credit agencies 8 1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 1 2 5.3 -.1 3.2 9.2 10.8 4.1 7.8 11.1 13.7 15.8 6.8 9.9 10.7 2.1 2 3 5.1 -.1 3.2 9.0 9.9 4.0 7.6 10.5 14.1 13.7 7.1 8.7 10.1 .3 3 4 U.S. Government securities.... 1.0 * -.1 -.2 1.7 - 2.0 .3 -.5 1.2 2.0 -.5 1.0 4.4 -1.9 4 5 Residential mortgages.............. 1.9 1.1 1.6 3.9 5.4 1.7 2.5 4.7 6.6 5.8 5.4 6.3 4.0 1.4 5 6 Farm mortgages........................ .7 .7 .5 .6 .5 .6 .8 .6 .3 .3 .5 .5 .5 .5 6 7 1.6 - 1.8 1.2 4.8 2.3 3.7 4.0 5.7 5.9 5.6 1.7 .9 1.1 .2 7 8 To coops (BC)....................... .2 .2 .1 .2 .3 .2 .2 -.1 .3 .3 .1 .4 .4 .3 8 9 To farmers (FICB)................ .4 .5 .2 .6 .7 .6 .7 .4 .8 1.0 .7 .2 .9 1.1 9 10 To S & L’s (FHLB).............. .9 -2.5 .9 4.0 1.3 2.9 3.1 5.3 4.8 4.4 .8 .3 -.2 - 1.2 10 11 5.2 — .2 3.2 9.1 10.8 4.1 7.8 11.4 13.3 15.8 6.7 9.9 10.8 2.3 11 12 4.8 -.6 3.5 8.8 8.7 3.6 8.4 10.6 12.5 14.4 5.5 7.8 7.0 - 1.8 12 13 5.1 -.6 3.2 9.1 8.7 4.8 8.4 10.6 12.5 14.4 5.5 7.8 7.0 - 1.8 13 14 -.2 -.1 .2 -.3 - 1.1 14 15 .4 .5 -.3 .4 2.1 .4 -.6 .8 .8 1.3 1.2 2.1 3.7 4.1 15 Note.—Data revised 1968-70. For other notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73.6 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III !V I II III IV I Monetary authorities 1 1 Current surplus................................. * * * * * * * * * * * * * * 1 2 Net acquisition of financial assets. . . 4.2 4.8 3.7 4.2 5.3 1.9 2.0 5.5 7.4 6.1 1.1 9.9 4.0 11.4 2 3 Gold and foreign exchange 2....... -.3 -.5 -1.2 -.1 -1.4 * -.9 2.0 -1.5 .8 -2.0 -1.0 -3.3 -.9 3 4 Treas. currency and SDR ctfs....... .7 .5 .2 * .7 -.4 .1 .2 .3 1.9 .3 .4 .3 .5 4 5 F.R. float....................................... .3 * .9 .1 .8 -2.6 -1.9 3.4 1.4 2.4 -3.1 1.2 2.7 -2.1 5 6 F.R. loans to domestic banks.. .. .1 * * * .2 .9 .7 .4 -2.0 -.2 .4 1.6 -1.2 -2.1 6 7 Credit mkt. instruments................ 3.5 4.8 3.7 4.2 5.0 4.1 4.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 7 8 U.S. Govt, securities................. 3.5 4.8 3.8 4.2 5.0 4.0 4.2 -.4 9.2 1.1 5.4 7.9 5.6 15.7 8 9 4.2 4.7 3.7 4.2 5.3 1.9 2.0 5.5 7.4 6.1 1.1 9.9 4.0 11.4 9 10 Member bank reserves................. 1.3 1.3 .7 .3 2.1 .5 -2.8 3.0 .3 4.3 -1.3 5.7 -.5 9.7 10 11 .6 .5 1.3 .1 -.3 .9 . 1 - .5 2.9 -.2 — .4 1.01 .6 11 Demand deposits and currency 12 .2 .9 -1.0 .5 -.4 -.3 -.1 .1 2.3 -1.2 -3.2 2.3 . 6; - 1.3 12 13 Foreign 4................................... .2 * .1 -.1 * -.2 ♦ -.1 -.1 .3 -.2 -.2 -.1 .2 13 14 Currency outside banks............ 2.0 2.1 2.4 2.8 3.5 .9 3.7 2.5 4.2 -.7 5.6 3.2 1.5; 3.2 14 15 Other.............................................. - .1 * .2 .6 .4 1.0 .2 -.2 1.2 .4 .5 -.8 1.6i -1.1 15 Commercial banks and affiliates 5 1 Current surplus................................. 2.5 2.3 3.0 3.5 3.5 3.4 3.5 3.6 3.6 3.5 3.4 3.6 3.6 3.8 1 2 Net acquisition of financial assets. .. 20.1 39.9 44.0 19.7 38.0 18.7 35.5 14.9 9.3 36.3 30.5 55.2 34.3 60.3 2 3 Total loans and investments........ 16.8 36.9 39.7 16.5 29.5 8.8 33.8 4.2 18.9 10.1 27.4 52.1 28.4 39.1 3 4 Credit market instruments........ 16.2 35.4 38.4 17.7 28.1 14.8 29.5 7.3 18.5 10.8 33.5 43.0 25.4 42.0 4 5 U.S. Government securities6. -3.6 9.3 3.4 -9.5 9.0 -16.2 -7.2 -9.5 -5.2 .5 6.8 11.0 17.6 3.5 5 6 Direct................................. -3.4 6.3 2.2 -9.3 5.8 -14.4 -8.8 -7.6 -6.2 -.7 6.8 8.9 8.0 3.2 6 7 Agency issues..................... * .3 1.1 1.1 4.1 -1.0 .1 1.2 4.1 2.9 1.4 2.3 9.7 2.5 7 8 Loan partic. certificates... -.2 2.7 .2 -1.3 -.9 -.7 1.5 -3.0 -3.1 -1.6 -1.5 -.3 -.1 -2.1 8 9 Other securities and mtg.. . • 6.6 14.3 15.5 5.5 13.2 9.3 8.4 3.0 1.5 7.4 9.5 17.7 18.0 26.8 9 10 State and local obligations. 1.9 9.0 8.6 .4 10.1 1.5 2.3 -.9 -1.5 5.0 8.0 14.5 12.9 21.4 10 11 Corporate bonds................ . 1 .8 .3 -. 1 .7 . 1 1 - .2 - .2 .9 1.8 11 12 Home mortgages............... 2.4 2.4 3.5 3.0 .9 4.3 3.3 2.1 2.1 1.0 .6 1.1 .9 2.7 12 13 Other mortgages................ 2.3 2.2 3.2 2.3 1.4 3.3 2.7 2.0 1.1 1.4 * 2.0 2.4 2.7 13 14 Other credit exc. security. . . 13.3 11.7 19.5 21.7 6.0 21.7 28.4 13.8 22.2 2.8 17.2 14.3 -10.2 11.7 14 15 Consumer credit................ 2.6 1.8 4.9 3.3 1.9 3.8 3.9 2.7 3.0 1.0 2.3 3.8 .4 1.8 15 16 Bank loans n.e.c................. 9.1 7.5 15.7 17.8 2.1 18.0 24.0 11.1 17.6 5.1 10.1 5.3 -11.8 10.5 16 17 1.6 2.4 -1.1 .5 2.0 -.1 .5 * 1.6 -3.3 4.8 5.2 1.1 -.6 17 18 .5 1.5 1.3 -1.1 1.3 -6.1 4.3 -3.1 .4 -.7 -6.1 9.1 3.0 -2.9 18 19 Vault cash & mem. bk. reserves.. 1.9 1.8 2.0 .4 1.8 .5 -1.9 3.1 -.2 7.2 -1.5 5.4 .4 10.3 19 20 Loans to affiliate banks................ .6 . 1 1.0 .7 .4 .3 .5 -. 1 - .3 .2 1.8 20 21 Miscellaneous assets..................... 1.4 1.2 2.3 2.2 6.6 8.4 3.0 7.3 -9.8 18.5 4.7 -2.0 5.2 9.1 21 22 Net increase in liabilities................... 18.9 38.1 42.2 18.0 35.9 17.4 32.9 13.3 7.7 34.6 28.1 53.0 32.5 55.7 22 23 .3 11.9 13.3 5.2 7.1 -1.4 6.7 8.4 6.8 6.7 7.7 3.5 14.9 -3.0 23 24 U.S. Government...................... -.5 .2 -.2 * 2.8 -5.4 1.8 1.8 1.9 2.3 5.2 -1.5 5.4 -17.8 24 25 Other?........................................ .8 11.6 13.5 5.2 4.2 4.0 4.9 6.7 4.8 4.4 2.4 5.1 9.4 14.8 25 26 13.3 23.8 20.6 -9.7 36.7 -7.6 -9.0 -21.2 -1.1 11.6 28.5 65.6 41.3 57.8 26 27 Large negotiable CD’s............. -.8 4.7 3.1 -12.6 15.2 -18.8 -14.0 -14.2 -3.3 5.3 7.6 34.3 13.4 5.8 27 28 Other.......................................... 14.0 19.1 17.4 2.9 21.6 11.2 5.0 -7.0 2.2 6.3 20.9 31.3 27.9 52.0 28 29 Commercial paper issues.............. 4.2 -1.9 .8 4.2 5.0 6.9 8.9 4.1 -11.5 -8.9 -2.6 29 30 .1 .2 .2 .1 .1 .1 .3 * -.1 .2 * * * 1.4 30 31 F.R. float....................................... .3 * .9 .1 .8 -2.6 -1.9 3.4 1.4 2.4 -3.1 1.2 2.7 -2.1 31 32 Borrowing at F.R. Banks............. .1 * * * .2 .9 .7 .4 -2.0 -.2 .4 1.6 -1.2 -2.1 32 3 3 3 4 L Pr o o a f n it s t f a r x o m lia a b f i f l i i l t i i a e t s e . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . * 1 -. 1 . . 6 1 . . 1 3 1.0 . . 6 7 .4 * -.3 .3 1 . . 5 0 -.1 .2 -. . 3 3 -.1 .2 1 . . 3 8 3 33 4 35 Liabilities to fgn. branches.......... 2.7 .2 1.8 7.0 -6.8 14.3 14.6 4.3 -5.3 -4.4 -2.9 -5.7 -14.3 -15.4 35 36 Other misc. liabilities.................... 2.2 5.5 10.4 -.6 11.9 16.0 12.5 1.2 7.9 -6.6 -1.7 -2.0 21.7 36 37 Discrepancy...................................... .8 .2 .6 .7 .4 1.0 -.1 .9 1.0 .8 * .3 .6 .1 37 Memo: Amounts included above for un­ consolidated bank affiliates: 38 Net acquisition of financial assets*... 4.4 -1.0 2.4 7.7 6.6 .9 12.0 4.8 -11.8 -9.0 1.1 38 39 Bank loans n.e.c............................ 3.8 -1.1 1.4 7.0 6.2 .6 11.5 4.9 -11.5 -9.2 -.7 39 40 Loans to affiliate banks................ .6 .1 1.0 .7 .4 .3 .5 -.1 -.3 .2 1.8 40 41 Net increase in liabilities................... 4.4 -1.0 2.4 7.7 6.6 .9 12.0 4.8 -11.8 -9.0 1.1 41 42 Commercial paper issues............. 4.2 -1.9 .8 4.2 5.0 6.9 8.9 4.1 -11.5 -8.9 — 2.6 42 43 Miscellaneous liabilities............... .2 .9 1.6 3.5 1.5 -5.9 3.1 .7 -.2 * 3.7 43 Note.—Data revised 1968-70. For other notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ FLOW OF FUNDS A 73.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III IV I II III IV I Private nonbank financial institutions—Total 1 1 Current surplus................................. 1.6 1.3 .2 -.2 1.5 -2.3 .6 .1 .9 .1 .9 2.0 3.0 3.1 1 2 Physical investment (life insurance).. .5 .6 .7 .8 .9 .8 .8 .8 .8 .9 .9 .9 .9 .9 2 3 Net acquisition of financial assets... . 34.9 42.4 50.0 48.4 51.4 38.3 63.9 42.0 49.6 33.5 45.9 63.7 62.6 84.6 3 4 Demand deposits and currency. . . -.1 1.0 .9 .5 1.3 -1.3 1.4 .1 1.5 .7 1.2 1.3 2.0 2.8 4 5 Time deposits (MSB).................... * * * -.1 -.2 -.2 5 6 Svgs. and loan shares (Cr. union) -.2 .3 -.1 * .7 .1 -.2 -.1 .3 .8 .6 .2 1.3 1.8 6 7 Corporate shares........................... 5.9 8.3 9.4 12.7 11.2 10.1 13.7 12.0 15.1 14.7 9.2 6.4 14.3 21.1 7 8 Credit market instruments........... 27.3 27.1 36.2 36.0 36.6 33.2 49.9 34.0 26.9 19.8 36.9 51.8 37.7 49.1 8 9 U.S. Government securities---- .4 -1.9 2.2 -.8 3.7 -2.4 4.8 -4.7 -.8 -.7 9.8 2.2 3.7 3.3 9 10 State and local oblig................. .8 1.2 1.2 1.0 1.4 .4 1.2 1.5 .7 1.9 -.2 2.0 1.9 1.4 10 11 Corporate and foreign bonds... 8.0 11.1 9.6 6.6 10.4 6.9 11.3 6.4 1.8 2.9 12.9 14.3 11.4 15.9 11 12 Home mortgages....................... 5.1 8.0 8.6 8.6 7.0 10.6 11.2 7.1 5.5 1.6 4.5 10.2 11.7 13.4 12 13 Other mortgages....................... 6.8 6.7 7.0 6.7 8.7 6.0 6.3 7.2 7.4 7.0 8.2 8.4 11.3 9.6 13 14 Consumer credit........................ 2.9 1.4 3.8 4.2 .6 4.4 5.4 3.6 3.4 2.3 2.2 -.4 - 1.8 .8 14 15 Other loans................................ 3.3 .6 3.8 9.7 4.8 7.3 9.8 12.9 8.9 4.8 -.4 15.2 -.3 4.8 15 16 -.1 2.8 2.0 - 2.6 -1.4 -6.3 -.6 -5.2 1.8 -4.6 -3.4 .4 2.1 2.1 16 17 Trade credit................................... .2 .3 .3 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 17 18 Miscellaneous assets..................... 2.0 2.6 1.4 1.5 2.6 2.3 -.5 .6 3.5 1.7 .9 3.3 4.7 7.4 18 19 Net increase in liabilities................... 34.7 43.3 49.7 50.5 51.6 41.8 64.3 44.9 50.9 33.2 46.2 64.2 63.0 80.5 19 20 Time and savings accounts........... 7.0 17.0 12.8 8.1 17.2 13.5 8.8 5.7 4.5 5.2 15.8 21.9 25.8 52.3 20 21 Insurance and pension reserves... 16.7 17.5 18.5 18.7 21.0 14.9 22.4 18.7 18.9 18.7 22.7 19.8 22.8 25.5 21 22 Credit market instruments........... 2.9 -.8 6.7 12.4 3.8 7.9 14.7 14.2 12.6 4.5 5.0 3.8 1.9 2.8 22 23 Finance company bonds........... .8 1.0 .8 1.6 2.5 1.4 2.2 1.4 1.3 1.3 2.3 2.8 3.8 4.1 23 24 Mtg. loans in process................ -.9 1.0 .2 * .6 .7 .3 -.3 -.6 - 1.2 * 1.6 2.2 1.6 24 25 Bank loans n.e.c........................ -1.3 - 2.1 2.3 2.1 -.5 .9 4.9 -.6 3.4 -2.3 1.2 3.0 -4.1 6.2 25 26 Other loans................................ 4.3 -.7 3.3 8.6 1.2 4.9 7.4 13.8 8.5 6.8 1.4 -3.6 .1 -9.0 26 27 Finance company paper........ 3.4 1.8 2.5 4.6 -.2 1.9 4.3 8.5 3.7 2.4 .6 -3.9 .3 -7.8 27 28 FHLB loans........................... .9 -2.5 .9 4.0 1.3 2.9 3.1 5.3 4.8 4.4 .8 .3 -.2 - 1.2 28 29 Investment company shares.......... 3.7 2.6 4.7 5.7 2.4 7.7 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 29 30 Security credit............................... .6 2.1 2.0 - 2.0 1.2 -9.5 3.8 -5.1 2.6 -1.5 -7.4 9.4 4.5 - 1.1 30 31 Taxes payable............................... * -.1 .2 .1 .2 .2 -.1 .3 .1 * -.1 .4 .7 -.3 31 32 Miscellaneous liabilities............... 3.8 5.0 4.8 7.5 5.8 7.2 9.9 4.9 8.0 4.7 7.4 5.6 5.3 1.0 32 33 Discrepancy...................................... .8 1.5 -.9 1.1 .9 .4 .3 2.2 1.4 - 1.0 .3 1.5 2.6 - 2.0 33 Savings and loan associations 1 Net acquisition of financial assets.... 4.6 9.7 9.7 9.5 14.3 12.8 10.2 8.2 6.8 5.5 12.7 17.9 21.2 37.6 1 2 Demand deposits & currency 2... -.5 -.3 -.4 -.2 .1 -.1 -.5 * .2 * .1 .2 .4 2 3 Credit market instruments........... 4.2 9.1 10.1 9.9 11.5 12.6 11.8 9.0 6.1 4.0 10.4 14.2 17.2 31.6 3 4 U.S. Govt, securities................. .4 1.6 .7 .3 1.2 1.8 .5 .1 -1.3 -.3 3.2 1.5 .2 14.3 4 5 Home mortgages....................... 2.9 6.0 7.2 7.8 7.2 9.1 9.5 7.0 5.5 3.0 4.9 9.3 11.7 12.1 5 6 Other mortgages....................... .9 1.5 2.1 1.8 3.0 1.7 1.8 2.0 1.8 1.3 2.2 3.4 5.3 5.2 6 7 Consumer credit........................ * * .1 * * * .1 * -.1 -.1 .1 .1 * -.1 7 8 Misc. financial trans...................... .9 .9 * -.2 2.7 .4 - 1.2 -.9 .8 1.3 2.3 3.6 3.8 5.6 8 9 Net increase in liabilities................... 4.0 9.3 8.9 8.6 13.6 12.3 9.1 7.4 5.4 4.9 11.8 17.1 20.5 36.9 9 10 Savings shares............................... 3.6 10.6 7.5 4.1 11.1 8.0 4.8 2.9 .7 2.0 9.8 15.6 16.9 36.8 10 11 Credit market instruments........... .1 -1.7 1.1 4.1 1.9 3.2 3.5 5.1 4.6 2.5 .8 1.7 2.4 -.3 11 12 Mtg. loans in process................ -.9 1.0 .2 * .6 .7 .3 -.3 -.6 - 1.2 * 1.6 2.2 1.6 12 13 .9 -2.5 .9 4.0 1.3 2.9 3.1 5.3 4.8 4.4 .8 .3 -.2 - 1.2 13 Mutual savings banks 1 Net acquisition of financial assets3. .. 2.8 5.4 4.6 3.1 4.7 4.9 3.5 1.8 2.1 2.6 5.2 5.0 6.0 13.4 1 2 Corporate shares........................... * .2 .3 .2 .3 .2 .2 .2 .2 .3 .3 .3 .3 .3 2 3 2.6 5.0 4.1 2.9 3.9 4.7 3.3 1.2 2.6 2.0 4.5 3.9 5.1 12.0 3 4 -.5 -.3 -.2 -.5 .2 .3 -.5 - 1.0 -.8 -.6 .6 .5 .3 -.5 4 5 State and local govt, securities.. -.1 * * * * * * * * * * * .2 5 6 Corporate bonds....................... .3 2.1 1.3 .3 1.4 .9 .8 -.3 -.1 .9 1.7 .9 2.2 7.8 6 7 Home mortgages....................... 1.6 1.8 1.4 1.4 .9 1.6 1.5 1.1 1.4 .2 1.1 1.1 1.3 1.6 7 8 Other mortgages....................... 1.1 1.4 1.4 1.3 .9 1.3 1.2 1.0 1.7 .5 .8 1.0 1.3 1.5 8 9 Savings deposits............................ 2.6 5.1 4.2 2.6 4.4 3.8 2.7 1.5 2.2 1.6 4.4 4.7 7.0 12.4 9 10 Miscellaneous liabilities............... * .1 .1 .2 .1 .1 .5 * .3 .1 .5 .1 -.4 -.1 10 Life insurance companies 1 Net acquisition of financial assets3. .. 8.3 8.7 9.8 9.2 9.3 9.1 9.2 9.1 9.2 9.6 9.4 9.1 9.2 14.1 1 2 Corporate shares........................... .3 1.0 1.4 1.7 2.0 1.9 1.8 1.1 2.1 2.2 2.3 .5 2.9 4.3 2 3 Credit market instruments............ 7.8 7.4 7.7 6.6 6.8 5.7 8.7 7.5 4.6 6.2 7.2 8.6 5.3 7.6 3 4 U.S. Govt, securities................. -.3 -.3 -.1 -.4 * -.7 * -.8 .1 -.5 .5 .1 -.3 - 1.1 4 5 State and local obligations---- -.4 -.1 .2 * .1 * * .2 -.1 * -.1 .2 .1 .1 5 6 Corporate bonds....................... 2.4 3.8 3.9 1.5 1.5 2.4 2.7 1.5 -.6 .7 2.4 1.3 1.8 3.2 6 7 Home mortgages....................... .6 -.5 -.7 - 1.1 -1.4 -.7 -.6 -.8 - 2.1 -1.3 - 1.2 - 1.2 - 1.8 -1.5 7 8 Other mortgages....................... 4.0 3.4 3.2 3.1 3.7 2.6 2.9 3.2 3.8 4.0 3.7 3.3 3.9 2.4 8 9 Other loans................................ 1.5 1.0 1.2 3.4 2.9 2.2 3.7 4.2 3.6 3.4 1.9 5.0 1.5 4.4 9 10 Net increase in liabilities................... 7.9 8.8 9.1 9.2 9.3 9.2 9.2 9.3 9.3 9.3 9.3 9.3 9.3 12.1 10 11 Life insurance reserves................. 4.5 4.7 4.6 4.8 4.8 4.8 4.9 4.9 4.8 4.8 4.8 4.8 4.8 4.8 11 12 Pension fund reserves................... 2.1 2.6 2.9 2.9 3.1 2.9 2.9 2.9 3.0 3.0 3.0 3.1 3.1 5.9 12 13 Other liabilities............................. 1.2 1.6 1.5 1.4 1.4 1.4 1.5 1.3 1.5 1.4 1.6 1.3 1.2 1.5 13 Digitized for FRASER http://fraser.stNloouties.—feDd.aotarg r/e vised 1968-70. For other notes see p. A-73.9. Federal Reserve Bank of St. Louis

A 73.8 FLOW OF FUNDS □ AUGUST 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT— Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III IV I II III IV I Private pension funds 2 1 Ne D t e a m cq a u n is d i t d io e n p o o s f i f t i s n a a n n c d i a c l u a r s r s e e n t c s y .. 6.1 * 6. . 3 4 6. .3 4 6.3* 6. . 6 2 -1 3 . . 6 3 7 1 . . 5 6 - 6 . . 3 1 8. . 3 4 5. .3 7 - 5 . . 3 3 6. .8 2 - 9 .1 .0 8 1 . . 1 0 3 Corporate shares....................... 3.7 4.6 4.7 5.4 4.6 5.8 4.8 4.5 6.5 5.2 3.8 2.7 6.8 9.2 4 5 Cr U ed .S it . m G a o r v k t e , t s i e n c s u t r r i u ti m es e . n .. t . s .. . . . . . . . . . . . . . . . - 1 .5 .9 -.6 .5 1. . 1 4 . . 1 9 2. . 0 4 -.7 .7* 2. . 7 9 -. . 5 7 -. . 4 9 1 . . 6 8 2 3 . . 1 2 - 2 . . 6 1 - - 3 . . 2 0 6 7 C M o o r r p tg or a a g t e e s . b .. o .. n .. d ... s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . .9 5 . .1 9 .7* . . 1 6 1.6 * .7* 1 . . 3 6 . . 8 3 1. . 1 2 1.2 - 1 .1 .3 2.8 * -2 -. . 6 3 8 Miscellaneous............................ .6 .3 .1 -.2 -.2 .4 -.7 -.7 -.4 .3 1.0 State and local govt, employee retirement funds 1 Net acquisition of financial assets---- 4.0 3.9 4.6 4.6 6.6 3.9 7.1 4.8 2.8 5.2 9.5 5.7 5.9 6.7 1 2 Demand deposits and currency... .1 .1 * * .2 * * * * -.4 .6 -.2 .7 2 3 Corporate shares........................... .5 .7 1.3 1.7 2.1 1.2 2.1 1.5 2.1 1.9 2.2 1.5 2.9 2.8 3 4 Credit market instruments.......... 3.4 2.8 3.2 2.9 4.1 2.9 5.1 3.2 .6 3.5 6.5 4.2 2.1 3.8 4 5 U.S. Govt, securities................. .2 - 1.0 .4 -.2 -.3 .1 -.3 * -.8 -.1 -.4 * -.8 -1.3 5 6 Direct..................................... .1 - 1.1 -.3 -.4 -.4 * -.4 -.4 -.8 -.2 -.5 -.7 -.6 6 8 7 U.S. Govt, agency sec........... -.1 .1 -.1 .1 .6 * -. . 2 2 -.3 * . * 1 -.1 .1 .4 * -. . 5 1 -.1 .1 -. . 6 1 -.2 * —. 5 * - -. . 1 7 8 7 9 Other cr. mkt. instruments .... 3.8 4.5 4.2 5.1 6.9 4.0 7.6 4.7 3.9 5.6 9.8 6.0 6.2 7.9 9 10 Corporate bonds................... 2.5 3.4 2.5 3.0 3.9 2.5 5.2 2.3 1.9 2.6 6.3 3.9 2.7 4.8 10 11 Mortgages.............................. .8 .5 .4 .3 .9 .3 .3 .9 -.1 1.1 1.3 .6 .6 .3 11 12 Other.............................................. .1 .4 .1 * .2 -.2 -.1 * .1 .2 .2 .2 .2 .1 12 Other insurance companies 1 Current surplus................................. .5 .4 .1 * .5 * * * -.1 -.1 .2 .8 1.1 1.1 1 2 Net acquisition of financial assets.... 2.1 2.0 3.1 3.0 3.7 3.3 4.6 .5 3.4 3.7 3.6 3.7 3.7 4.6 2 3 Demand deposits and currency... * * .1 * * * -.1 -.1 * * * * * * 3 4 Corporate shares........................... .4 .3 .8 1.0 1.0 1.1 1.2 .3 1.3 1.4 1.1 .1 1.3 1.5 4 5 Credit market instruments........... 1.5 1.4 1.9 1.6 2.3 1.8 3.1 -.2 1.7 2.0 2.0 3.2 2.0 2.7 5 6 U.S. Government securties.... -.4 -.7 -.2 -.4 * -.3 1.0 - 2.2 -.3 * .1 .5 -.4 * 6 7 State and local oblig................. 1.3 1.4 1.0 1.2 1.1 1.2 1.3 1.3 1.2 1.1 1.1 1.0 1.0 1.2 7 8 Corporate bonds....................... .6 .7 1.2 .8 1.2 .9 .8 .7 .8 .8 .8 1.6 1.4 1.5 8 9 Commercial mortgages............. * * * * * * * * * * * * * * 9 10 Trade credit................................... .2 .3 .3 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 .4 10 11 Net increase in liabilities................... 1.8 2.1 2.4 3.4 3.7 3.4 4.9 1.4 3.9 3.6 3.6 3.8 3.9 3.8 11 12 Discrepancy....................................... .1 .5 -.5 .4 .6 .1 .3 .9 .4 -.2 .2 .9 1.3 .2 12 Finance companies 1 Net acquisition of financial assets.. .. 2. 6 .9 5.5 8.0I 1.9 4.6 11.4 8.7 7.5 2.1 4.0| 2.0 -.6 3.1 1 2 Demand deposits and currency... . 2 .2 .2 .3i .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 2 3 Home mortgages........................... — . 6 .4 . 6 .3 .1 .6 .8 -.5 .2 -.7' -.4 1.2 .4 1.7 3 4 Consumer credit........................... 1.8 .6 2.4 2.6i -.6 2.7 3.5 2.2 2.1 1.3 .9 - 2.1 - 2.6 -.8 4 5 Other loans (to bus.)..................... 1.2 -.4 2.2 4.8 2.1 1.0' 6.7 6.7 4.9 1.2 3.2 2.6 1.3 2.0 5 6 Net increase in liabilities................... 2.8 .9 5.5 8.2 1.9 4.7 11.2 9.1 8.0 2.0 4.2 2.1 -.6 3.1 6 7 Corporate bonds........................... .8 1.0 .8 1.6 2.5 1.4 2.2 1.4 1.3 1.3 2.3 2.8 3.8 4.1 7 8 Bank loans n.e.c............................ -1.4 - 2.0 2.3 2.1 -.5 1.4 4.7 -.7 2.9 -1.7 1.3 3.2 -4.7 6.8 8 9 Open market paper....................... 3.4 1.8 2.5 4.6 -.2 1.9 4.3 8.5 3.7 2.4 .6 -3.9 .3 -7.8 9 Open-end investment companies 1 Current surplus................................. - 1.2 -1.5 - 2.2 -2.4 -.8 -4.9 - 1.8 - 2.1 -.8 -1.4 - 1.1 -.7 -.1 -.3 1 2 Net acquisition of financial assets---- 2.5 1.1 2.5 3.3 1.6 2.8 3.0 4.1 3.4 .2 1.6 2.6 1.9 -.1 2 3 Demand deposits and currency... * .2 .1 -.1 * -.1 -.1 -.1 * * -.5 .3 .2 .4 3 4 Corporate shares........................... 1.0 1.5 1.5 2.5 1.1 -.7 3.1 3.3 4.3 4.2 - 1.0 -.8 2.1 2.1 4 5 Credit market instruments........... 1.5 -.5 .9 .9 .5 3.6 * .9 -.9 -3.9 3.2 3.1 -.4 -2.5 5 6 U S. Govt, securities................. .6 -.5 .2 -.5 .2 -.7 * .2 -1.3 -.8 8.3 -7.0 .1 6 7 Corporate bonds....................... .4 * .4 .2 .7 .5 .5 -.6 .3 -2.9 * 3.2 2.4 * 7 8 Open market paper................. .5 * .3 1.2 -.4 3.8 -.4 1.3 .2 -.3 -5.2 6.9 -2.9 —2.6 8 9 Net stock issues 4............................. 3.7 2.6 4.7 5.7 2.4 7.7 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 9 Note.—Data revised 1968-70. For other notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o FLOW OF FUNDS A 73.9 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 I II III IV I II III IV I Rest of the world 1 Net U.S. exports............................... 5.3 5.2 2.5 2.0 3.6 1.4 1.2 2.8 2.7 3.5 4.2 4.0 2.7 4.2 1 2 43.4 46.2 50.6 55.6 62.9 48.0 56.9 58.3 59.2 61.5 63.2 63.7 63.2 66.1 2 3 38.1 41.0 48.1 53.6 59.3 46.6 55.7 55.5 56.6 58.0 59.0 59.7 60.5 61.9 3 4 Transfer receipts from U.S............... 2.8 3.0 2.9 2.9 3.1 2.5 3.4 2.8 3.0 3.0 3.0 3.2 3.3 3.1 4 5 Current account balance1................ -2.4 - 2.2 .4 .9 -.4 1.2 2.2 -.1 .3 -.5 - 1.2 -.8 .7 -l.l 5 6 Net financial investment.................... - 2.0 - 1.2 .9 3.7 .6 5.9 4.2 4.1 .4 .6 .3 1.5 .1 4.1 6 7 Net acquis, of financial assets....... 3.3 7.6 8.5 10.3 5.2 13.9 15.2 12.4 — .2 8.8 4.8 5.2 2.0 12.6 7 8 Gold and SDR’s2..................... .6 1.2 1.2 - 1.0 .8 .2 -1.3 * - 2.8 -.4 -.1 1.4 2.2 .9 8 9 U.S. dem. dep. and currency... - 1.0 .3 .3 .3 .3 -.1 .6 .6 * 1.4 -.4 -.5 .5 -.1 9 10 Time deposits............................ .8 1.2 -.3 1.0 -1.9 -.5 -1.4 .4 5.7 4.3 -3.5 -3.2 -5.1 - 1.2 10 11 U.S. Corporate shares.............. -.3 .7 2.0 1.6 .7 3.0 .6 .7 2.0 -.3 -.3 1.5 1.9 .3 11 12 U.S. Government securities___ -2.4 2.1 -.5 - 1.8 9.1 -4.5 - 1.8 2.7 -3.7 8.0 8.2 4.7 15.5 26.1 12 13 Other credit market instr.3 . . .. .9 .1 .8 1.5 1.1 1.5 2.1 1.7 .7 1.8 1.7 - 1.1 2.3 .4 13 14 Other financial assets 4............. 4.7 2.0 4.9 8.7 -5.0 14.4 16.4 6.3 - 2.1 - 6.0 -.7 2.3 -15.4 -13.7 14 15 Net increase in liabilities............... 5.3 8.7 7.6 6.7 4.6 8.0 11.0 8.3 -.7 8.1 4.5 3.7 1.9 8.5 15 16 Official U.S. fgn. exchange5 ... * 1.1 2.1 .3 -2.5 .4 -.1 2.8 -1.9 -2.3 -4.2 -1.7 -1.9 -2.5 16 17 Foreign corporate shares.......... -.3 .1 .2 .5 * .2 1.2 .4 .1 -.4 -.2 .4 .3 .3 17 18 Corporate bonds....................... .7 1.2 1.1 1.0 .8 1.3 .8 1.7 .4 1.1 -.3 1.6 .9 1.2 18 19 Loans 6....................................... 1.1 2.8 1.7 2.2 1.7 2.6 4.0 .3 1.9 1.9 2.1 .3 2.7 3.6 19 >0 Other liabilities 7....................... 3.8 3.6 2.6 2.7 4.5 3.6 5.1 3.2 - 1.1 7.9 7.0 3.2 -.2 6.0 20 >1 Discrepancy 8.................................... -.4 - 1.1 -.5 - 2.8 - 1.1 -4.8 - 2.0 -4.1 -.1 - 1.1 -1.5 - 2.2 .5 -5.2 21 Note.—Data revised 1968-70. Notes to Table 4 Households Banking 1 Imputed saving associated with growth of government life insurance 1 Federal Reserve System plus those Treasury accounts included in and retirement reserves. “Member Bank Reserves, Federal Bank Credit, and Related Items” 2 From open-end investment companies. (p. A-4). Excludes Exchange Stabilization Fund, which is in U.S. Govt, 3 Policy loans, hypothecated deposits, and U.S. Govt, loans to nonprofit accounts. organizations. 2 Includes F.R. holdings Of foreign currencies. On Special Drawing Rights, see notes 5 and 7 to Governments table. SDR certificates as assets Business of the Federal Reserve are on line 4 of this table. 1 Excludes imputed rental income from owner-occupied houses. 3 Includes vault cash of nonmember banks. 2 Change in work in process. 4 IMF deposits are net in line 3. 3 After inventory valuation adjustment. 5 This section represents a combined statement for commercial banks 4 Excludes CCC-guaranteed loans, treated as U.S. Govt, purchases on plus affiliates not consolidated in bank reports (see lines 38-43 below). NIA basis. Based on balance sheet estimates for last day of quarter. Reported bank 5 Includes corporate farms. data, as on p. A-19, are frequently for last Wednesday of month or other 6 Noncorporate net income is treated as payment in full to proprietors reporting date. Excludes banks in U.S. possessions. in the household sector. Gross saving consists of capital consumption 6 Net change in par value of holdings. allowances plus corporate farm retained profits. 7 Net of F.R. float, shown separately in line 31. 7 Loans from U.S. Govt, and commercial loans from finance companies. 8 Includes earnings retained in business; see note 6 above. Nonbank finance 9 Direct investments abroad, foreign currency holdings, and unallocated 1 In addition to types shown, includes credit unions, agencies of foreign current assets. banks, security brokers and dealers, and banks in possessions. Commercial paper, commercial loans from finance companies, and 2 Excludes deposits at FHLB, which are included in Miscellaneous, U.S. Govt, loans. line 8. 3 Includes cash and other assets, not shown separately. Governments 4 Includes retained capital gains dividends. 1 Retirement funds are on p. A-73.8. 2 Unified budget basis for all years. Excludes sponsored agencies Rest of the world shown below. 1 Line 4 minus line 1. The current balance is shown here from the 3 Govt, life insurance, employee retirement, and R.R. retirement viewpoint of the rest of the world and is thus opposite in sign from U.S. programs. balance of payments statements and U.S. national income accounts. 4 Securities of sponsored credit agencies only. 2 Net purchases of gold and Special Drawing Rights from the U.S. only. 5 Mainly official foreign exchange and IMF position of Treasury. Excludes acquisitions of gold from outside the U.S. Also excludes January Includes net purchases of Special Drawing Rights, which are assets of allocation of SDR’s. the Exchange Stabilization Fund. Initial allocation of SDR’s in January 3 Corporate bonds and acceptances. is excluded, however, from these tables on transactions. 4 Trade credit, direct investment in the United States, bank liabilities 6 Loan participation certificates and securities issued by Export-Import to foreign branches, deposits at agencies of foreign banks, security credit, Bank, GNMA, CCC, Federal Housing Administration, and TV A. In­ and unallocated assets. cludes mortgage liabilities of Defense Dept, and Coast Guard. 5 Includes net IMF position. 7 Includes net sales of SDR certificates to Federal Reserve System. 6 Bank loans, acceptances, and loans from U.S. Govt. 8 Home loan banks, land banks, intermediate credit banks, banks for 7 Trade debt, direct investment abroad, foreign currencies other than cooperatives, Federal National Mortgage Association (before 1969, sec­ in line 15, subscriptions to international organizations except IMF, and ondary market operations only), and mortgage pools issuing GNMA- unidentified liabilities. guaranteed securities. 8 Errors and omissions in U.S. balance of payments statement. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 74 U.S. BALANCE OF PAYMENTS □ AUGUST 1971 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1970 1971 Line Credits-)-; debits — 1968 1969 1970 I II III IV I p Summary—Seasonally adjusted 1 Merchandise trade balance 1................................................... 624 660 2,110 513 751 704 142 272 2 Exports.............................................................................. 33,588 36,490 41,980 10,241 10,582 10,696 10,461 11,032 3 Imports.............................................................................. -32,964 -35,830 -39,870 -9,728 -9,831 -9,992 -10,319 -10,760 4 Military transactions, net......................................................... -3,140 -3,341 -3,371 -908 -808 -884 -770 -677 5 Travel and transportation, net................................................ -1,558 -1,780 -1,979 -448 -500 -553 -478 -484 6 Investment income, net 2......................................................... 6,220 5,975 6,242 1,577 1,469 1,571 1,626 1,727 7 U.S. direct investments abroad........................................ 6,519 7,340 7,906 2,039 1,905 1,973 1,988 1,984 8 Other U.S. investments abroad........................................ 2,714 ' 3,199 3,503 886 886 882 851 861 9 Foreign investments in the United States....................... -3,013 -4,564 -5,167 -1,348 -1,322 -1,284 -1,213 -1,118 10 Other services, net..................................................................... 344 497 588 147 133 157 150 213 11 Balance on goods and services 3....................................................... 2,489 2,011 3,592 881 1,045 995 670 1,051 12 Remittances, pensions and other transfers............................. -1,168 -1,266 -1,410 -338 -362 -359 -351 -351 13 Balance on goods, services and remittances.................................... 1,321 745 2,182 543 683 636 319 700 14 U.S. Government grants (excluding military)......................... -1,707 -1,644 -1,739 -418 -391 -444 -485 -432 15 Balance on current account............................................................... -386 -899 444 125 292 192 -166 268 16 U.S. Government capital flows excluding nonscheduled repayments, net 4.................................................................. -2,538 -2,106 -1,837 -511 -480 -396 -450 -603 17 Nonscheduled repayments of U.S. Government assets.......... 269 -87 244 88 114 2 40 4 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies......................................................... 107 263 -436 -30 -224 82 -263 -88 19 Long-term private capital flows, net....................................... 1,198 -50 -1,453 -969 -272 -220 7 -997 20 U.S. direct investments abroad........................................ -3,209 -3,254 -4,445 -1,358 -1,257 -897 -934 -1,357 21 Foreign direct investments in the United States............. 319 832 969 486 105 218 160 50 22 Foreign securities.............................................................. -1,226 -1,494 -942 -210 93 -488 -337 -362 23 U.S. securities other than Treasury issues....................... 4,389 3,112 2,190 304 374 720 792 628 24 Other, reported by U.S. banks........................................ 430 477 199 31 68 44 56 -114 25 Other, reported by U.S. nonbanking concerns............... 495 277 576 -222 345 183 270 158 26 Balance on current account and long-term capital 4........................ -1,349 -2,879 -3,038 -1,297 -570 -340 -832 -1,416 27 Nonliquid short-term private capital flows, net..................... 231 -602 -548 -107 -164 -121 -156 -100 28 Claims reported by U.S. banks........................................ -44 -658 -1,015 -162 -268 -189 -396 -85 29 -484 -35 -363 -108 -47 -56 -152 -15 30 Liabilities reported by U.S. nonbanking concerns......... 759 91 830 163 151 124 392 31 Allocations of special drawing rights (SDR)......................... 867 217 217 217 216 180 32 Errors and omissions, net........................................................ -493 -2,603 -1,132 -62 -430 -433 -207 -1,268 33 Net liquidity balance......................................................................... -1,610 -6,084 -3,852 -1,250 -945 -679 -977 -2,604 34 Liquid private capital flows, net.............................................. 3,251 8,786 -5,969 -1,615 -457 -1,398 -2,499 -2,919 35 Liquid claims..................................................................... -559 124 273 257 -81 -15 112 -232 36 -61 -209 -119 140 -127 -53 -79 -72 37 Reported by U.S. nonbanking concerns................. -498 333 392 117 46 38 191 -160 38 Liquid liabilities................................................................ 3,810 8,662 -6,242 -1,872 -376 -1,383 -2,611 -2,687 39 To foreign commercial banks.................................. 3,387 9,166 -6,507 -1,863 -441 -1,315 - 2,888 -3,025 40 To international and regional organizations........... 48 -63 179 142 -124 82 -79 268 41 To other foreigners.................................................... 375 -441 86 -151 189 -150 198 70 42 1,641 2,702 -9,821 -2,865 -1,402 -2,077 -3,476 -5,523 Financed by changes in: 43 Nonliquid liabilities to foreign official reserve agencies 1,806 -162 535 -266 735 -12 77 -8 44 Nonliquid liabilities to foreign official agencies reported 534 -836 -810 -154 -235 -233 -188 -216 45 Liquid liabilities to foreign official agencies........................... -3,101 -517 7,619 3,021 97 1,738 2,763 5,065 46 -880 -1,187 2,477 264 805 584 824 682 47 Gold................................................................................... 1,173 -967 787 -44 14 395 422 109 48 SDR................................................................................... -851 -270 -254 -251 -76 -55 49 -1,183 814 2,152 831 818 34 469 373 50 Gold tranche position in IMF......................................... -870 -1,034 389 -253 227 406 9 255 Memoranda: 51 Transfers under military grant programs, (excluded from lines 2, 4, and 14................................................................... 804 756 613 137 191 116 169 191 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20).......................... 2,175 2,532 (5) (5) (5) (5) (5) (5) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)...................... 488 431 (5) (5) (5) (5) (5) (5) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 75 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1970 1971 Credits + , debits — 1968 1969 1970 I II III IV Ip Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance..................................................................... -1,610 -6,084 -4,719 -1,467 -1,162 -896 -1,193 -2,784 Official reserve transactions balance............................................ 1,641 2,702 - 10,688 -3,082 -1,619 -2,294 -3,692 -5,703 Balances not seasonally adjusted Balance on goods and services (line 11)...................................... 2,489 2,011 3,592 1,234 1,300 -291 1,349 1,419 Balance on goods, services and remittances (line 13)................. 1,321 745 2,182 913 925 -657 1,002 1,085 Balance on current account (line 15)............................................ -386 -899 444 465 487 -1,060 552 624 Balance on current account and long-term capital 4 (line 26)... -1,349 -2,879 -3,038 -1,310 -899 -1,535 706 -1,366 Balances including allocations of SDR’s: -1,610 -6,084 -3,852 -505 -1,783 -1,456 -107 -1,921 Official reserve transactions (line 42).................................... 1,641 2,702 -9,821 -1,965 -2,069 -2,612 -3,174 -4,686 Balances excluding allocations of SDR’s: -1,610 -6,084 -4,719 -1,372 -1,783 -1,456 -107 -2,638 1,641 2,702 - 10,688 -2,832 -2,069 -2,612 -3,174 -5,403 1 Adjusted to balance of payments basis; excludes transfers under 3 Equal to net exports of goods and services in national income and military grants, exports under U.S. military agency sales contracts and product accounts of the United States. imports of U.S. military agencies. 4 Includes some short-term U.S. Govt, assets. 2 Includes fees and royalties from U.S. direct investments abroad or 5 Not available. from foreign direct investments in the United States. Note.—Data are from U.S. Department of Commerce, Office of Busi­ ness Economics. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports i Imports 2 Export surplus Period 1968 1969 1970 1971 1968 1969r 1970 1971 1968 1969 1970 1971 Month: Jan...................... 2,814 3 2,161 3,406 3,735 2,687 32,002 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 3 3,318 3,409 r3,522 3 2,604 3 3,183 3,263 3,758 251 135 146 -236 May................... 2,740 3 3,268 3,661 3,783 2,755 3 3,257 3,338 3,988 -15 11 323 -205 June................... 2,870 3 3,179 3,730 3,661 2,792 3 3,152 3,266 4,023 78 27 465 -363 July ........ 2,858 3,182 3,699 2,725 3,074 3,255 133 108 444 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: I................... 8,028 7,615 10,328 11,240 7,867 7,655 9,719 10,808 161 -40 609 432 II........................ 8,465 9,765 10,800 10,966 8,151 9,591 9,867 11,769 314 174 933 -803 in .......... 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 39,963 837 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 76 U.S. GOLD TRANSACTIONS □ AUGUST 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 I II III IV I Western Europe: -143 -82 —55 -100 -25 4 —63 —40 -83 -58 -456 -518 -405 -884 -601 600 325 -129 -129 -225 500 -1 -2 -2 -2 -52 41 2 2 200 -80 -60 -85 -209 -76 -60 -35 -19 — 50 — 20 -30 -25 — 146 -130 -32 -180 51 51 102 -81 -50 -2 -30 -50 -25 -50 -50 -75 -387 329 618 150 80 -879 -835 200 -12 1 -6 -35 -49 16 -47 il -29 2 -1 -8 -21 is Total........................... -1,105 -399 -88 -1,299 -659 -980 -669 969 -204 4 -1 -27 -180 -85 Canada ................................. 190 200 150 50 Latin American republics: Argentina ......................... 85 — 30 -39 -1 -25 -25 -28 -5 -23 Brazil.................................. 57 72 54 25 -3 -1 * -23 -23 Colombia........................... 38 10 29 7 * -1 -1 Venezuela........................... -25 Other.................................. -5 -11 -9 -13 -6 11 -40 -29 -80 -1 -9 -4 -66 * Total........................... 175 32 56 17 -41 9 -65 -54 -131 -7 -9 -4 -111 * Asia: Iraq..................................... -10 -4 -21 -42 Japan.................................. -56 -119 -119 Lebanon............................. -32 -11 -11 -1 -95 -35 Malaysia............................. -1 -34 Philippines......................... * 25 20 * -1 9 40 -4 1 * 3 -8 — 1 Saudi Arabia..................... -13 -50 Singapore........................... -81 11 Other.................................. -47 -13 -6 -14 -14 -22 -75 -9 -91 2 23 -1 -41 -71 21 Total........................... -93 12 3 -24 -86 -44 -366 42 -213 24 -1 -39 -197 -15 All other................................. -1 -36 —7 -16 -22 3 — 166 3 —68 -1 -81 -1 -2 -4 -75 — l Total foreign countries......... -833 -392 -36 -J ,322 -608 — 1,031 -1,118 957 4 — 631 20 -14 -73 4 —563 — 102 Intl. Monetary Fund5........... 6-225 177 22 -3 10 — 156 24 — 322 4142 — 7 Grand total................ -833 -392 -36 -1,547 -431 -1,009 - 1,121 967 -787 44 -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 $17 million, was made in June 1968. 4 Data for IMF include the U.S. payment of $385 million increase in IMF sold to the United States a total of $800 million of gold ($200 its gold subscription to the IMF and gold sold by the IMF to the United million in 1956, and $300 million in 1959 and in 1960) with the right of States in mitigation of U.S. sales to other countries making gold payments repurchase; proceeds from these sales invested by IMF in U.S. Govt, to the IMF. The country data include U.S. gold sales to various countries securities. In Sept. 1970 IMF repurchased $400 million. in connection with the IMF quota payments. Such U.S. sales to countries 6 Payment to the IMF of $259 million increase in U.S. gold subscription and resales to the United States by the IMF total $548 million each. less gold deposits by the IMF. Notes to Table 5 on opposite page: 1 Represents net IMF sales of gold to acquire U.S. dollars for use in 4 Represents the U.S. gold tranche position in the IMF (the U.S. IMF operations. Does not include transactions in gold relating to gold quota minus the holdings of dollars of the IMF), which is the amount deposit or gold investment (see Table 6). that the United States could purchase in foreign currencies automatically if needed. Under appropriate conditions, the United States could pur­ 2 Positive figures represent purchases from the IMF of currencies of chase additional amounts equal to its quota. other members for equivalent amounts of dollars; negative figures repre­ 5 Includes $259 million gold subscription to the IMF in June 1965 for sent repurchase of dollars, including dollars derived from charges on a U.S. quota increase, which became effective on Feb. 23, 1966. In figures purchases and from other net dollar income of the IMF. The United published by the IMF from June 1965 through Jan. 1966, this gold sub­ States has a commitment to repurchase within 3 to 5 years, but only to scription was included in the U.S. gold stock and excluded from the the extent that the holdings of dollars of the IMF exceed 75 per cent of reserve position. the U.S. quota. Purchases of dollars by other countries reduce the U.S. 6 Includes $30 million of special drawing rights. commitment to repurchase by an equivalent amount. Note.—The initial U.S. quota in the IMF was $2,750 million. The U.S. 3 Includes dollars obtained by countries other than the United States quota was increased to $4,125 million in 1959, to $5,160 million in Feb. from sales of gold to the IMF. 1966, and to $6,700 million in Dec. 1970. Under the Articles of Agreement, subscription payments equal to the quota have been made 25 per cent in gold and 75 per cent in dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) Gold stock1 Con­ Reserve Gold stock1 Con­ Reserve E y n e d a r of Total Total2 Treasury v f c o e u c r r r i e t r e i i e b s g n l n e ­ p I o M s i i n t F io 3 n SDR’s4 E m n o d n t o h f Total Total2 Treasury v c fo u e c r r i r e t e r i i e s b g 5 n l n e ­ p I o M s i i n t F i o 3 n SDR’s4 1958... 22,540 20,582 20,534 1,958 1970 1959... 21*504 19*507 19*456 1,997 July. . . 16,065 11,934 11,367 716 2,454 961 1960. . . 19*359 17*804 17*767 1,555 Aug..., 15,796 11,817 11,367 695 2,323 961 Sept__ 15,527 11,494 11,117 1,098 1,944 991 1961. . . 18,753 16,947 16,889 116 1,690 Oct.. . . 15,120 11,495 11,117 811 1,823 991 1962... 17,220 16,057 15,978 99 1,064 Nov__ 14,891 11,478 11,117 640 1,812 961 1963... 16,843 15,596 15,513 212 1,035 Dec.... 14,487 11,072 10,732 629 1,935 851 1964... 16,672 15,471 15,388 432 769 1965... 15,450 613,806 613,733 781 6 863 1971 Jan.. .. 14,699 11,040 10,732 491 1,700 1 ,468 1966. .. 14,882 13,235 13,159 1,321 326 Feb.... 14,534 11,039 10,732 327 1,700 1,468 1967. . . 14,830 12,065 11,982 2,345 420 Mar__ 14,342 10,963 10,732 256 1,680 1,443 1968. . . 15,710 10,892 10,367 3,528 1,290 Apr.. .. 14,307 10,925 10,732 257 1,682 1,443 1969... 716,964 11,859 10,367 7 2,781 2,324 May... 13,811 10,568 10,332 318 1,678 1,247 1970... 14,487 11,072 10,732 629 1,935 851 June... 13,504 10,507 10,332 322 1,428 1,247 July.... 13,283 10,453 10,332 250 1,433 1,147 1 Includes (a) gold sold to the United States by the International Mon­ 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. etary Fund with the right of repurchase, and (b) gold deposited by the 6 Reserve position includes, and gold stock excludes, $259 million gold IMF to mitigate the impact on the U.S. gold stock of foreign purchases subscription to the IMF in June 1965 for a U.S. quota increase which for the purpose of making gold subscriptions to the IMF under quota became effective on Feb. 23, 1966. In figures published by the IMF from increases. For corresponding liabilities, see Table 6. June 1965 through Jan. 1966, this gold subscription was included in the 2 Includes gold in Exchange Stabilization Fund. U.S. gold stock and excluded from the reserve position. 3 The United States has the right to purchase foreign currencies equiva­ 7 Includes gain of $67 million resulting from revaluation of the German lent to its reserve position in the IMF automatically if needed. Under ap­ mark in Oct. 1969, of which $13 million represents gain on mark holdings propriate conditions the United States could purchase additional amounts at time of revaluation. equal to the U.S. quota. See Table 5. 4 Includes initial allocation by the IMF of $867 million of Special Draw­ Note.—See Table 23 for gold held under earmark at F.R. Banks for ing Rights on Jan. 1, 1970, and second allocation of $717 million of foreign and international accounts. Gold under earmark is not included SDR’s on Jan. 1, 1971, plus net transactions in SDR’s. in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. U.S. transactions with IMF Transactions by reserve other countries position Period with IMF in IMF P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F i T t c f i r o c u o a i r r n e n e r s s i s e g a n i 2 n c n ­ ­ I i M d n o c F i l o n l a m n rs e e t P d u o rc l o l h a f a r s s e 3 s 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 u r o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957............................. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963............................. 1,031 150 60 - 1,666 2,740 2,315 3,090 75 1,035 1964—1966............................. 776 1,640 45 —723 6 1,744 4,834 94 5326 1967......................................... 20 -114 -94 4,740 92 420 1968......................................... -84 20 -806 -870 3,870 75 1,290 1969......................................... 22 19 -1,343 268 -1,034 2,836 55 2,324 1970......................................... 1,155 6712 150 25 -854 741 1,929 4,765 71 1,935 1970--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 -1 7 4 5,022 75 1,678 June........................ 250 -1 1 250 5,272 79 1,428 July............................... -5 -5 5,267 79 1,433 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 78 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreignl countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Non­ p E e o r n i f o d d Total Total p G o d s o e i l ­ t d 1 m in G e v o n e l t s d t 2 ­ Total i i p S t b n l i t i o e a h e a b r s U n r b o y t m k e i r . r l S t d s e ­ ­ . ­ M n b G o U a a o a t o b n n . e r v S l k d d s 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 y a d k e d e e s . e r s ­ t t ­ - Total i i p S t n b l i t i o e a h e a b r U s n r b o y t m k e i r r . l S t e s d ­ ­ . ­ M n b G o U a a o a t o b n r n . e S v l k d d s e t . e s , 4 t ­ Total i i n p S t l b i t i o e h e a a U b r s r n b o y t m . i k e r S r l t d e s ­ . ­ ­ 6 M n b G o U a o a a o b t n r n . e S v k l 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 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 87 66 6 7 7 , , 5 5 9 9 1 8 7 7 , , 0 0 4 4 8 8 5 5 4 5 3 0 1 1, , 5 5 4 2 1 5 7 75 50 0 7 7 9 7 1 5 1961 8........ / \2 2 2 2 , , 9 8 3 5 6 3 8 8 0 0 0 0 8 80 0 0 0 1 1 1 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 9 4 4 0 0 8 8 9 9 0 0 8 8, , 2 3 7 5 5 7 7 7 , , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 , , 9 94 4 8 9 7 70 0 3 4 1 1, , 2 2 4 4 5 5 1962 8........ \ f 2 2 4 4 , , 0 0 6 6 8 8 8 8 0 0 0 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 3 5 59 9 7 7 , , 9 9 1 1 1 1 4 4 4 4 8 8 2 2 , , 1 1 6 9 1 5 1 1 , , 2 2 5 8 0 4 9 91 11 1 1963 8......... / \ 2 2 6 6 , , 3 3 6 2 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 4 4 , , 3 3 8 53 7 1 1 2 2 , , 4 4 6 6 7 7 1 1 , , 1 2 8 1 3 7 7 7 0 0 3 3 9 9, ,2 20 1 4 4 8 8 , , 8 8 6 6 3 3 3 3 5 4 1 1 1 1 , , 9 9 6 6 5 0 8 80 0 8 8 1 1 , , 1 15 5 7 2 1 QtZA ft (28,951 800 800 15,428 13,224 1,125 1,079 11,001 10,625 376 1,722 818 904 t29,002 800 800 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 \29,779 1,011 211 800 13,655 12,539 860 256 14,208 13,680 528 905 580 325 1967 8........ / \ 3 3 3 3 , , 2 1 7 1 1 9 1 1 , , 0 0 3 3 3 3 2 2 3 3 3 3 8 8 0 0 0 0 1 15 5 , , 6 6 5 4 3 6 1 1 4 4 . , 0 0 2 3 7 4 9 9 0 0 8 8 7 7 1 1 1 1 1 1 5 5 , , 7 8 6 9 3 4 1 1 5 5, ,2 3 0 3 5 6 5 5 5 5 8 8 6 6 9 7 1 7 4 4 8 7 7 3 2 2 0 0 4 4 1l yQo/CoQ 0y........ / \3 3 3 3 , , 6 8 1 2 4 8 1 1 , , 0 0 3 3 0 0 2 2 3 3 0 0 8 8 0 0 0 0 1 12 2 , , 4 5 8 4 1 8 1 1 1 1 , , 3 3 1 1 8 8 5 4 2 6 9 2 7 70 01 1 1 1 9 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 68 83 3 3 4 9 2 1969- U ec. 1 u J \4 4 1 1, , 7 9 7 0 6 0 1 1 , ,0 01 1 9 9 2 2 1 19 9 8 8 0 00 0 1 1 1 1 , , 9 9 9 92 4 1 11 1 , , 0 0 5 56 4 3 38 8 3 3 5 5 5 5 5 5 2 2 8 8 , , 1 2 0 2 6 4 2 2 7 7 , , 6 5 9 7 5 7 5 5 2 2 9 9 6 6 6 5 3 9 6 6 1 0 3 9 5 5 0 0 1970-May.. 43,223 1,010 210 800 14,797 13,986 382 429 26,713 26,212 501 703 652 51 June.. 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... 44,008 1,010 210 800 16,622 15,776 417 429 25,533 24,971 562 843 798 45 Sept... 44,216 587 187 400 17,778 16,932 417 429 25,088 24,521 567 763 717 46 Oct.. . 44,261 587 187 400 18,131 17,376 326 429 24,730 24,165 565 813 768 45 Nov... 44,488 579 179 400 19,965 19,210 326 429 23,159 22,573 586 785 738 47 Dec... 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.. 45,531 559 159 400 24,827 24,049 349 429 19,034 18,361 673 1,111 971 140 Apr.* 47,724 548 148 400 27,293 26,515 349 429 18,615 17,937 678 1,268 1,128 140 May* 51,875 548 148 400 32,119 31,318 349 452 17,898 17,254 644 1,310 1,169 141 1 Represents liability on gold deposited by the International Monetary shown for the preceding date; figures on the second line are comparable Fund to mitigate the impact on the U.S. gold stock of foreign purchases with those shown for the following date. for the purpose of making gold subscriptions to the IMF under quota in­ 9 Data included on the first line for holdings of marketable U.S. Govt, creases. securities are based on a July 31, 1963, benchmark survey of holdings and 2 U.S. Govt, obligations at cost value and funds awaiting investment regular monthly reports of securities transactions (see Table 16). Data in­ obtained from proceeds of sales of gold by the IMF to the United States cluded on the second line are based on a benchmark survey as of Nov. 30, to acquire income-earning assets. Upon termination of investment, the 1968, and the monthly transactions reports. For statistical convenience, same quantity of gold can be reacquired by the IMF. the new series is introduced as of Dec. 31, 1968, rather than as of the 3 Includes Bank for International Settlements and European Fund. survey date. 4 Derived by applying reported transactions to benchmark data; The difference between the two series is believed to arise from errors in breakdown of transactions by type of holder estimated for 1960-63. reporting during the period between the two benchmark surveys, from Includes securities issued by corporations and other agencies of the U.S. shifts in ownership not involving purchases or sales through U.S. banks Govt, that are guaranteed by the United States. and brokers, and from physical transfers of securities to and from abroad. 5 Principally the International Bank for Reconstruction and Develop­ It is not possible to reconcile the two series or to revise figures for earlier ment and the Inter-American Development Bank. dates. 6 Includes difference between cost value and face value of securities in 10 Includes $17 million increase in dollar value of foreign currency IMF gold investment account. Liabilities data reported to the Treasury liabilities resulting from revaluation of the German mark in Oct. 1969. include the face value of these securities, but in this table the cost value of the securities is included under “Gold investment.” The difference, which Note.—Based on Treasury Dept, data and on data reported to the amounted to $19 million at the end of 1970, is included in this column. Treasury Dept, by banks and brokers in the United States. Data correspond 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for to statistics following in this section, except for minor rounding differences. which breakdown by type of holder is not available. Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury 8 Data on the two lines shown for this date differ because of changes in letters of credit and non-negotiable, non-interest-bearing special United reporting coverage. Figures on the first line are comparable with those States notes held by other international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 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 1967........... 15,646 9,872 996 1,131 3,145 249 253 19683.......... 12,548 7,009 533 1.354 3.168 259 225 12,481 7,001 532 1.354 3,122 248 224 1969—Dec.. 411,994 5,860 495 1,681 3,190 546 222 1970—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 Nov.. 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.. 24,827 17,149 801 1,218 5,004 242 413 Apr.. 27,293 19,170 818 1,228 5,291 257 529 May* 32,119 22,776 865 1,178 6,402 286 612 1 Includes Bank for International Settlements and European Fund. Note.—Data represent short-term liabilities to the official institutions 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ of foreign countries, as reported by banks in the United States, and foreign pean dependencies in Latin America. official holdings of marketable and convertible nonmarketable U.S. Govt, 3 See note 9 to Table 6. securities with an original maturity of more than 1 year. 4 Includes $17 million increase in dollar value of foreign currency liabilities resulting from revaluation of the German mark in Oct. 1969. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To nonmonetary international To all foreigners and regional organizations 5 Payable in dollars IMF Deposits End of period Total i Total Dem D an e d pos T it i s me 2 b T i c l r U l e e s r a . t S s i a f u . i n r ­ y d s O l t i h e a t o r h b m r e . t r 3 ­ P f r o e a c n y r i u e n c a r i i b g ­ e l n s e i m n g v o e e l n s d t t ­ 4 Total Demand Time2 b T i c r l c U e l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t o r b h m r . e t 3 r ­ cates 1968............ 31,717 31,081 14,387 5,484 6,797 4,413 636 800 683 68 113 394 108 19698.......... [40,040 39,611 20,430 6,834 5,015 7,332 429 800 609 57 83 244 224 140,164 39,735 20,436 6,967 5,015 7,317 429 800 613 62 83 244 223 1970—June. 41,756 41,418 18,091 7,278 8,159 7,890 338 800 629 83 119 194 232 July.. 41,858 41,514 17,220 7,187 9,103 8,004 344 800 705 73 131 218 284 Aug.. 42,345 42,008 17,432 7,249 9,845 7,482 337 800 798 66 137 252 343 Sept.. 42,570 42,213 17,234 7,248 10,856 6,875 357 400 717 73 135 179 330 Oct... 42,709 42,359 17,041 7,082 11,665 6,571 350 400 768 68 144 188 368 Nov.. 42,921 42,578 15,833 6,725 13,651 6,369 343 400 738 68 137 148 385 Dec.. 41,674 41,306 15,793 5,897 14,110 5,506 368 400 817 69 156 211 381 1971—Jan... 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.. 43,781 43,129 11,803 5,165 18,664 7,497 652 400 971 73 165 242 491 Apr.. 45,980 45,343 10,409 4,952 22,317 7,665 637 400 1,128 63 197 206 662 May*, 50,141 49,522 9,936 4,899 26,961 7,726 619 400 1,169 52 218 209 689 June* 46,664 46,004 10,861 4,968 22,759 7,416 660 400 1,150 64 219 164 703 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. □ AUGUST 1971 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions6 Payable in dollars Payable in dollars Payable End of period in Payable Total Dema D n e d posi 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 . t 3 r ­ f r o e c n r u e c i r i g ­ e n s Total Dema D n e d 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 ia t o r h b m r e t . ­ r 3 cu f r o r r e i e n n i c g i n es 1968....................... 30,234 14,320 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 1,321 463 1969 8..................... \ / 3 3 8 8 , , 7 6 5 3 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 42 2 9 9 1 1 1 1 , , 0 05 5 6 4 1 1 , , 9 91 18 9 2 2 , ,9 9 5 51 1 3 3, ,8 84 44 4 2 2 , , 1 1 3 4 9 0 2 20 0 2 2 1970—June............ 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............. 40,747 17,366 7,112 8,793 7,138 337 15,776 1,249 3,612 8,653 2,114 148 Sept............. 41,453 17,161 7,113 10,277 6,545 357 16,932 1,369 3,440 10,141 1,834 148 Oct.............. 41,541 16,972 6,938 11,077 6,204 350 17,376 1,444 3,178 10,919 1,687 148 Nov............. 41,783 15,764 6,588 13,103 5,984 343 19,210 1,367 2,851 12,967 1,877 148 Dec............. 40,457 15,724 5,741 13,498 5,126 368 19,293 1,629 2,568 13,354 1,594 148 1971—Jan.............. 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............. 42,410 11,730 5,000 18,022 7,006 652 24,049 1,560 2,246 17,863 1,980 400 Apr............. 44,452 10,346 4,754 21,711 7,003 637 26,515 1,612 2,204 20,119 2,180 400 May*.......... 48,572 9,883 4,681 26,352 7,037 619 31,318 1,611 2,203 24,702 2,382 9 420 June*.......... 45,114 10,798 4,749 22,195 6,713 660 26,771 1,437 2,263 20,097 2,554 420 To banks7 To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Dema D n e d p osi T ts ime2 T b c i r l c U e e l a s a r . t t s S e i a u f s . n i r ­ d y s O l t h i e a t o r h b m r e . t r 3 ­ Total Dema D n e d p osi T ts ime2 T b c i r l c U e e l a s a r . t t s S i e a u f . s n i r ­ d y s O l t i h e a t o r h b m r e . t r 3 ­ f r o e c r n u e c r i i g ­ e n s 196 8 18,916 14,299 10,374 1,273 30 2,621 4,444 1,797 2,199 86 362 173 1969 8......... 2 27 7 , , 6 5 9 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 2 0 0 4 4 , , 6 6 5 4 8 4 4 3 , , 0 93 6 9 2 1 1 . . 7 7 1 09 0 1 1 , , 8 9 1 3 1 4 1 1 0 0 7 7 3 3 1 1 2 2 2 22 2 6 6 1970—June.. 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.. 24,971 20,839 14,432 1,735 23 4,648 3,943 1,685 1,764 116 376 189 Sept.. 24,521 20,400 14,139 1,903 23 4,335 3,913 1,653 1,770 114 376 208 Oct.. . 24,165 20,055 13,921 1,964 32 4,139 3,908 1,607 1,796 127 378 202 Nov.. 22,573 18,428 12,747 1,917 21 3,743 3,950 1,651 1,820 115 364 195 Dec.. 21,164 16,906 12,360 1,335 14 3,197 4,038 1.734 1,839 131 334 220 1971—Jan... 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.. 18,361 14,029 8,447 889 24 4,669 4,079 1.724 1,865 135 356 253 Apr.. 17,937 13,568 6,933 660 1,476 4,499 4,131 1,801 1,890 116 324 238 May* 17,254 13,009 6,539 593 1,518 4,359 4,046 1.734 1,885 131 296 199 June*’ 18,343 14,146 7,608 653 2,011 3,874 3,957 1,753 1,833 86 285 240 1 Data exclude “holdings of dollars” of the International Monetary 7 Excludes central banks, which are included in “Official institutions.” Fund. s Data on the two lines shown for this date differ because of changes in 2 Excludes negotiable time certificates of deposit, which are included reporting coverage. Figures on the first line are comparable in coverage in “Other.” with those shown for the preceding date; figures on the second line are 3 Principally bankers’ acceptances, commercial paper, and negotiable comparable with those shown for the following date. time certificates of deposit. 9 Increase in valuation resulting from revaluation of Swiss franc. 4 U.S. Treasury bills and certificates obtained from proceeds of sales of gold by the IMF to the United States to acquire income-earning assets. Note.—“Short-term” refers to obligations payable on demand or having Upon termination of investment, the same quantity of gold can be re­ an original maturity of 1 year or less. For data on long-term liabilities acquired by the IMF. reported by banks, see Table 10. Data exclude the “holdings of dollars” 5 Principally the International Bank for Reconstruction and Develop­ of the International Monetary Fund; these obligations to the IMF consti­ ment and the Inter-American Development Bank. tute contingent liabilities, since they represent essentially the amount of Includes difference between cost value and face value of securities in dollars available for drawings from the IMF by other member countries. IMF gold investment account. Data exclude also U.S. Treasury letters of credit and non-negotiable, non- 6 Foreign central banks and foreign central govts, and their agencies, interest-bearing special U.S. notes held by the Inter-American Develop­ and Bank for International Settlements and European Fund. ment Bank and the International Development Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 81 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP Junep Europe: Austria...................................................... 314 273 263 236 185 204 198 194 191 185 203 Belgium-Luxembourg.............................. 530 614 742 709 596 760 766 769 779 903 774 Denmark.................................................. 153 195 193 187 189 196 216 220 219 148 175 Finland..................................................... 120 137 134 139 117 117 112 114 115 107 110 1,581 2,286 2,311 2,417 2,267 2,354 2,263 2,344 2,297 2,227 2,467 Germany.................................................. 1,381 5,439 5,977 7,543 7,520 7,795 8,518 9,568 10,316 12,471 7,266 Greece...................................................... 207 204 212 198 184 162 176 140 145 146 152 Italy.......................................................... 627 909 1,104 1,162 1,317 1,579 1,629 1,766 1,903 1,823 1,750 Netherlands.............................................. 463 626 800 748 762 584 654 741 620 661 609 Norway..................................................... 341 287 315 291 324 317 313 364 403 465 506 Portugal.................................................... 309 275 251 250 274 299 307 319 298 280 270 202 391 299 234 198 205 203 184 201 231 200 Sweden...................................................... 412 389 378 449 503 519 541 577 631 625 681 2,005 2,015 1,985 1,914 1,947 1,936 2,011 2,021 2,144 2,310 2,092 Turkey...................................................... 28 34 34 37 46 53 51 32 25 43 21 United Kingdom..................................... 11,349 9,113 7,865 6,659 5,508 5,637 5,210 4,778 5,086 5,155 6,152 Yugoslavia................................................ 37 33 31 49 37 36 46 41 33 38 33 Other Western Europe1.......................... 1,553 850 747 828 594 460 377 368 339 812 1,012 U.S.S.R..................................................... 11 3 13 13 15 11 9 12 22 9 9 Other Eastern Europe............................. 50 46 43 48 54 63 56 53 45 50 66 Total.................................................. 21,674 24,118 23,694 24,112 22,637 23,284 23,656 24,605 25,812 28,739 24,549 Canada.......................................................... 4,012 3,787 4,529 4,213 4,016 3,663 3,624 3,400 3,255 3,136 3,290 Latin America: Argentina.................................................. 416 533 605 560 539 508 517 522 506 504 447 Brazil........................................................ 425 398 415 353 305 344 326 291 301 284 313 Chile.......................................................... 400 325 359 327 265 256 252 258 259 256 257 Colombia.................................................. 261 282 258 244 247 231 215 186 191 169 183 Cuba.......................................................... 7 7 6 7 7 7 8 8 7 7 6 Mexico...................................................... 849 846 814 876 820 828 829 824 861 797 790 Panama.................................................... 140 172 169 173 158 163 177 173 185 173 175 Peru........................................................... 240 221 213 213 225 186 178 168 181 190 200 Uruguay.................................................... 111 107 104 108 117 125 125 119 120 112 116 Venezuela.................................................. 691 630 643 652 735 672 695 645 684 729 786 Other Latin American republics............. 576 633 619 604 620 617 614 609 601 582 582 Bahamas and Bermuda........................... 1,405 1,015 761 806 745 798 675 631 957 940 959 Netherlands Antilles and Surinam......... 80 95 91 96 98 92 95 101 105 105 101 Other Latin America............................... 34 33 37 42 39 37 38 49 48 56 46 Total.................................................. 5,636 5,295 5,095 5,060 4,918 4,866 4,743 4,582 5,008 4,905 4,960 Asia: China Mainland....................................... 36 41 38 35 33 36 36 34 34 33 35 Hong Kong.............................................. 213 235 250 274 258 305 322 298 281 313 305 India.......................................................... 260 366 401 426 302 236 229 188 211 245 255 Indonesia.................................................. 86 53 50 85 73 60 65 52 73 60 71 Israel......................................................... 146 121 118 107 135 121 128 122 155 125 132 Japan........................................................ 3,809 4,149 4,274 4,557 5,147 5,166 5,452 6,325 6,815 8,190 8,665 Korea........................................................ 236 263 195 185 199 193 178 191 184 193 204 Philippines................................................ 201 242 282 279 297 294 309 340 347 349 330 Taiwan...................................................... 196 228 247 260 275 292 278 288 296 293 291 628 585 549 511 508 489 469 443 381 306 281 Other........................................................ 606 769 728 680 708 722 735 674 601 585 558 Total.................................................. 6,417 7,053 7,134 7,401 7,936 7,913 8,201 8,954 9,375 10,693 11,127 Africa: Congo (Kinshasa).................................... 87 18 17 17 14 16 13 17 19 15 16 Morocco................................................... 21 14 14 10 11 7 7 8 9 9 9 South Africa............................................ 66 47 53 55 83 71 71 56 74 64 61 U.A.R. (Egypt)......................................... 23 19 19 20 17 16 18 15 15 14 15 Other......................................................... 505 677 566 471 395 469 334 278 268 291 285 Total.................................................. 701 776 668 573 521 580 443 373 384 392 385 Other countries: Australia................................................... 282 389 390 392 389 376 398 455 576 668 757 All other................................................... 29 34 31 33 39 34 46 43 41 40 46 Total.................................................. 311 423 421 425 428 410 444 497 617 708 803 Total foreign countries............................... 38,751 41,453 41,541 41,783 40,457 40,716 41,113 42,410 44,452 48,572 45,114 International and regional: International2........................................... 1,261 848 881 873 975 1,175 1,086 1,099 1,221 1,245 1,214 Latin American regional......................... 100 145 175 152 131 162 156 165 173 186 195 Other regional3........................................ 52 124 112 113 111 90 93 107 134 138 141 Total.................................................. 1,413 1,117 1,168 1,138 1,217 1,427 1,335 1,371 1,528 1,569 1,550 Grand total....................................... 40,164 42,570 42,709 42,921 41,674 42,143 42,448 43,781 45,980 50,141 46,664 For notes see the following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 82 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 9. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES BY COUNTRY—Continued (End of period. Amounts outstanding; in millions of dollars) Supplementary data 4 1969 1970 1971 1969 1970 1971 Area or country Area or country Apr. Dec. Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: I I C r c e y e l p l a a r n n u d d s , . . . . R . . . . . . e . . . p . . . . . . . . . . o . . . . . f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2 4 3 11 8 9 3 1 1 5 2 0 4 1 1 1 0 0 2 1 9 7 0 J L K o a u r o w d s a a .. n i .. t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 4 4 4 1 6 7 3 6 3 6 4 0 5 1 4 5 4 36 2 3 Lebanon..................................... 82 83 82 54 60 Other Latin American republics Malaysia..................................... 41 30 48 22 29 Bolivia..................................... 65 68 76 69 59 Pakistan...................................... 24 35 34 38 27 Costa Rica............................... 61 52 43 41 43 Ryukyu Islands (incl. Okinawa) 20 25 26 18 (5) Dominican Republic.............. 59 78 96 99 90 Saudi Arabia.............................. 48 106 166 106 41 Ecuador................................... 62 76 72 79 72 Singapore................................... 40 17 25 57 43 El Salvador............................. 89 69 79 75 80 Syria............................................ 4 4 6 7 3 Guatemala............................... 90 84 110 100 97 Vietnam...................................... 40 94 91 179 161 Haiti......................................... 18 17 19 16 19 Honduras................................ 37 29 29 34 44 Other Africa: Jamaica................................... 29 17 17 19 19 Algeria........................................ 6 14 13 17 13 Nicaragua................................ 78 63 76 59 47 Ethiopia (incl. Eritrea).............. 15 20 33 19 12 Paraguay................................. 18 13 17 16 15 Ghana......................................... 8 10 7 8 6 Trinidad & Tobago................ 8 8 11 10 14 Kenya......................................... 34 43 47 38 13 Liberia........................................ 28 23 41 22 21 Libya.......................................... 68 288 430 195 91 Ot B he ri r t i L sh a t W in e A st m In e d ri i c e a s : ................. 25 30 38 33 38 N So ig u e th ri e a r . n .. . R ... h .. o ... d .. e .. s .. i . a .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 0 11 2 11 2 17 1 (5 2 ) Sudan.......................................... 3 3 1 1 1 Other Asia: Tanzania..................................... 23 10 18 9 10 C B A a u fg m rm h b a a o n .. d i . s . i t . a a .. . n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 1 2 6 1 15 5 1 26 4 2 1 2 5 3 T Z U u a g m n a i n s b i d i a a a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 9 2 20 5 6 3 7 8 7 1 7 0 8 (5 6 5 ) Ceylon..................................... 5 3 4 4 4 Iran.......................................... 44 35 41 32 50 All other: Iraq.......................................... 77 26 6 11 (5) New Zealand............................. 20 16 18 25 22 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”). 5 Not available. 10. LONG-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) To foreign countries Country or area To End of period Total reg i a n i n o t d i n . al Total O in t f i s f o t i n i c t i s u a ­ l Banks1 fo O r e e t r h i s g e n r ­ A t r i g n e a n­ A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h t l e r l i r es 1967.............................. 2,560 698 1,863 1,807 15 40 251 234 126 443 218 502 89 1968.............................. 3,166 111 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—June................. 2,127 847 1,280 1,116 116 48 25 216 6 576 28 242 187 July.................. 2,033 826 1,208 1,036 118 54 25 198 7 523 28 237 191 Aug................... 1,936 838 1,097 928 118 51 25 145 7 499 22 204 194 Sept................... 1,916 862 1,054 883 119 53 25 147 7 477 11 190 197 Oct..................... 1,835 844 991 820 119 52 25 147 7 466 9 140 196 Nov................... 1,733 814 919 749 118 52 13 143 7 416 8 138 193 Dec.................... 1,696 787 909 695 160 54 13 138 6 385 8 122 236 1971—Jan.................... 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................... 1,342 632 710 489 161 60 13 88 6 261 1 94 246 Apr.................... 1,190 585 605 406 142 57 13 92 7 186 1 84 220 May**................. 1,146 559 587 391 139 57 13 94 8 182 1 81 208 June*................. 1,140 577 564 331 184 48 13 87 8 129 1 78 247 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 83 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. June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. MayP Junep Europe: Denmark............................ 9 6 6 6 6 5 5 3 3 3 3 3 3 3 France................................ 6 6 6 6 6 6 6 6 6 7 7 7 7 7 Netherlands....................... 2 2 2 2 2 2 2 2 2 2 2 2 2 2 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 42 45 44 47 49 49 49 49 48 49 48 45 45 44 United Kingdom............... 407 396 401 411 423 424 447 499 546 544 537 545 511 516 Other Western Europe.... 24 24 24 24 24 24 24 24 25 30 30 30 30 30 Eastern Europe.................. 7 7 7 7 7 7 6 6 6 6 6 6 6 6 Total............................... 538 529 532 545 560 559 582 632 679 683 675 680 645 650 Canada................................... 272 286 287 294 284 191 190 192 192 191 188 188 189 189 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 3 4 4 5 4 4 4 4 4 4 4 4 Total........................... 15 15 16 17 17 18 18 18 18 18 17 17 17 17 Asia: Japan.................................. 61 61 61 61 61 61 61 61 61 61 61 61 61 148 Other Asia......................... 18 19 19 19 19 19 18 38 38 38 38 38 38 38 Total........................... 79 81 81 81 80 80 80 99 99 99 99 99 99 186 Africa..................................... 7 22 42 42 42 42 42 42 42 42 42 42 42 42 Total foreign countries.......... 912 933 959 979 984 891 912 983 1,030 1,033 1,022 1,027 993 1,084 International and regional: International...................... 32 30 30 22 22 22 22 * * 16 114 114 114 114 Latin American regional.. 18 21 22 23 23 23 24 24 25 25 26 26 27 27 Asian regional................... Total........................... 50 52 53 45 45 46 46 24 25 41 140 140 140 141 Grand total................ 962 985 1,012 1,024 1,030 j 936 959 1,008 1,054 1,074 1,162 1,167 1,134 1,225 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 ­ m G a e n r y ­ 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 m G a e n r y ­ 3 Italy e S r w la i n tz d ­ 1968, 3,330 1,692 32 1,334 20 146 15 25 20 100 1,638 1,051 226 311 1969, 43,181 1,431 32 1,129 135 15 20 100 4 1,750 4 1,084 125 541 1970— 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 53,592 2,480 32 2,289 25 15 20 100 M,lll 542 5 569 June............... 6,592 5,480 32 2,289 3.000 25 15 20 100 1,111 542 569 July................ 8,592 7,480 32 2,289 5.000 25 15 20 100 1,111 542 569 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 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr May p Junep Europe: Austria...................................................... 7 4 5 8 6 4 4 5 17 6 5 Belgium-Luxembourg............................. 56 70 68 71 50 69 68 68 57 73 58 Denmark.................................................. 40 34 36 37 40 46 53 58 54 54 51 Finland..................................................... 68 63 56 55 66 103 110 123 128 137 132 France...................................................... 107 104 78 105 113 95 111 98 102 123 108 Germany.................................................. 205 181 182 184 184 142 171 190 211 356 250 Greece...................................................... 22 28 27 25 26 21 22 21 22 24 22 Italy.......................................................... 120 102 106 92 101 92 98 102 108 131 120 Netherlands.............................................. 51 67 52 57 61 74 68 70 76 85 87 Norway..................................................... 34 33 40 48 54 61 65 62 54 64 67 Portugal.................................................... 8 10 16 13 11 12 14 15 15 20 18 Spain......................................................... 70 59 58 54 52 49 56 59 65 70 61 Sweden...................................................... 67 112 123 110 97 102 100 104 124 129 135 Switzerland............................................... 99 100 115 98 100 121 114 174 130 163 148 Turkey...................................................... 19 6 4 4 9 3 4 5 8 30 14 United Kingdom..................................... 408 386 378 430 379 410 513 456 580 808 532 Y O u th g e o r s l W av e i s a t . e .. r . n .. . E ... u .. r .. o .. p .. e .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 9 3 7 6 42 8 4 1 1 2 3 1 5 3 3105!! 3 1 1 1 33 9 3 1 3 2 3 1 6 5 3 1 7 7 U.S.S.R..................................................... 2 3 3 1 3 2 2 3 3 2 2 Other Eastern Europe............................. 34 40 43 41 45 36 41 47 51 50 44 Total.................................................. 1,454 1,446 1,437 1,487 1,448 1,487 1,657 1,701 1,849 2,377 1,909 Canada......................................................... 826 806 897 917 1,084 914 941 1,018 972 1,021 1,003 Latin America: Argentina.................................................. 309 306 303 306 324 326 337 346 317 318 312 Brazil........................................................ 317 316 323 322 322 309 320 360 387 381 396 Chile.......................................................... 188 205 199 189 199 186 184 179 165 158 155 Colombia.................................................. 225 265 267 272 284 288 296 300 303 294 299 Cuba.......................................................... 14 14 14 13 13 13 13 13 13 13 13 Mexico...................................................... 803 900 906 934 904 912 951 908 893 883 876 Panama..................................................... 68 83 94 84 95 82 105 100 105 104 109 Peru.......................................................... 161 132 136 141 147 143 135 131 150 153 156 Uruguay.................................................... 48 57 54 55 63 56 51 49 53 51 44 Venezuela.................................................. 240 267 284 284 281 276 275 243 242 230 227 Other Latin American republics............. 295 285 298 321 340 334 336 326 329 311 312 Bahamas and Bermuda........................... 93 78 133 105 179 178 157 200 190 239 211 Netherlands Antilles and Surinam......... 14 18 14 14 19 19 14 15 21 20 19 Other Latin America............................... 27 22 20 22 22 22 21 22 22 22 27 Total.................................................. 2,802 2,947 3,045 3,062 3,191 3,145 3,193 3,193 3,189 3,177 3,155 Asia: China Mainland....................................... 1 1 2 1 2 1 1 2 1 1 1 Hong Kong.............................................. 36 46 36 36 39 40 41 49 60 56 60 India.......................................................... 10 10 12 12 13 16 13 15 21 20 19 Indonesia.................................................. 30 46 41 54 56 49 49 66 48 34 30 Israel......................................................... 108 82 105 110 120 99 130 97 110 112 117 Japan........................................................ 3,432 3,331 3,370 3,538 3,890 3,675 3,480 3,482 3,356 3,606 3,501 Korea........................................................ 158 227 218 197 196 196 194 221 243 246 274 Philippines................................................ 215 215 134 129 137 135 137 124 128 115 125 Taiwan...................................................... 49 81 82 82 95 101 113 119 117 127 130 Thailand.................................................... 101 108 100 97 109 106 109 109 118 114 116 Other........................................................ 212 157 160 164 157 167 182 183 187 211 200 Total.................................................. 4,352 4,304 4,262 4,420 4,815 4,585 4,448 4,466 4,389 4,642 4,572 Africa: Congo (Kinshasa).................................... 6 6 4 5 4 7 4 6 5 6 7 Morocco................................................... 3 5 6 4 6 6 6 6 5 6 5 South Africa............................................ 55 72 72 76 77 83 84 86 93 103 96 U.A.R. (Egypt)........................................ 11 13 12 10 13 16 14 14 17 16 14 Other........................................................ 86 63 63 72 79 78 85 101 103 104 110 Total.................................................. 162 159 157 166 180 190 194 213 223 235 232 Other countries: Australia................................................... 53 60 59 59 64 70 105 73 73 81 97 All other................................................... 16 17 15 16 16 17 19 18 18 17 17 Total.................................................. 69 77 75 75 80 87 124 91 91 98 114 Total foreign countries............................... 9,664 9,739 9,872 10,127 10,798 10,408 10,557 10,681 10,713 11,550 10,986 International and regional.......................... 2 2 1 2 3 2 2 2 2 2 4 Grand total....................................... 9,667 9,741 9,873 10,129 10,801 10,410 10,559 10,683 10,714 11,552 10,989 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

AUGUST 1971 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 85 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 Total Total O in t f i s o f t i i n c t i s u a ­ l Banks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o a m i c r f g n c a n a f c e d o c e e p e c r r s s t ­ t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c a o n p u c n o v a r a d i n t m p t , i c e e f l s e i r . s e ­ , ­ Other 1968.............................. 8,711 8,261 3,165 247 1,697 1,221 1,733 2,854 509 450 336 40 73 (9,578 9,063 3,281 262 1,946 1,073 1,954 3,169 658 518 352 84 79 1QAQ2 1 9,667 9,151 3,278 262 1,943 1,073 2,015 3,202 656 516 352 89 74 1970—June.................. 10,010 9,543 3,316 305 1,932 1,079 2,344 3,287 595 467 314 83 69 July................... 9,727 9,306 3,191 256 1,873 1,063 2,350 3,234 531 421 296 66 59 Aug................... 9,521 9,058 2,975 178 1,711 1,087 2,354 3,171 557 463 354 50 59 Sept................... 9,741 9,261 3,231 186 1,936 1,109 2,381 3,056 593 479 366 40 74 Oct..................... 9,873 9,358 3,129 109 1,897 1,123 2,438 3,158 634 515 366 67 83 Nov................... 10,129 9,574 3,132 95 1,894 1,143 2,429 3,330 683 555 354 112 89 Dec.................... 10,801 10,150 3,038 119 1,709 1,210 2,414 3,966 732 651 393 92 166 1971—Jan..................... 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.................... 10,714 10,181 3,091 107 1,731 1,253 2,320 4,086 684 534 339 92 103 May*................. 11,552 10,917 3,367 150 1,916 1,300 2,391 4,117 1,042 635 448 78 109 June*7................. 10,989 10,428 3,388 145 1,956 1,287 2,418 3,935 686 562 371 102 89 1 Excludes central banks which are included with “Official institutions.” with those shown for the preceding date; figures on the second line are 2 Data on the two lines shown for this date differ because of changes in comparable with those shown for the following date, reporting coverage. Figures on the first line are comparable in coverage 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars End of Payable period Total Loans to— O lo t n h g e ­ r c fo u r r i e r n i e g n n ­ U K d n i o n i m t g 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—June.... 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....... 3,131 2,719 470 225 2,023 383 29 64 398 411 1,324 106 515 312 Sept...... 3,155 2,750 460 244 2,046 377 28 65 395 416 1,357 108 499 314 Oct....... 3,229 2,839 531 256 2,053 359 30 67 407 409 1,342 109 582 312 Nov...... 3,216 2,825 515 247 2,064 364 26 66 387 398 1,362 113 583 307 Dec....... 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.... 3,035 2,729 501 221 2,008 277 30 111 424 268 1,261 125 548 297 Apr....... 3,072 2,768 504 218 2,046 271 33 117 439 275 1,262 120 554 305 May*... 3,237 2,926 523 244 2,160 279 32 107 498 277 1,254 208 548 345 June*... 3,209 2,906 475 235 2,196 277 26 112 519 266 1,219 225 514 355 1 Excludes central banks, which are included with “Official institutions.’1 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 1971 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h s a e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 196 9 -4 11 -15 -79 64 15,476 12,795 2,681 1,552 2,578 -1,026 1,519 2,037 -517 197 0 46 -25 71 -39 110 11,426 9,844 1,582 1,490 2,422 -932 1,033 995 38 1971—Jan.-June^ 217 116 101 93 7,707 7,292 415 832 1,420 -588 552 754 -202 1970—Jun e 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.......... 5 5 5 1,034 703 331 110 93 17 76 90 -14 Oct........... -93 -94 -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 53 1,321 1,030 291 140 263 -123 83 86 -3 1971—Ja..............n 46 -1 47 47 1,242 1,022 220 116 425 -308 90 95 -5 Feb........... 20 17 3 -2 1,516 1,411 105 126 107 19 68 108 -41 Mar.......... 88 99 -11 -11 1,411 1,314 97 176 190 -14 85 121 -36 Apr........... 5 5 4 1,383 1,408 -25 174 241 -67 117 179 -63 Mayp........ -33 -34 -34 1,155 1,123 32 118 218 -100 94 120 -26 June^....... 91 91 87 4 999 1,013 -14 121 239 -118 98 130 -32 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1969..................... 1,487 150 216 189 490 -245 295 1,094 125 136 90 7 -1 36 1970..................... 626 58 195 128 110 -33 24 482 -9 47 85 -1 1 22 1971—Jan.-June® 71 -42 60 58 9 -70 23 38 -57 25 24 * -1 43 1970—June......... 63 6 3 18 23 -23 14 41 8 -2 15 * * * July.......... 52 16 18 16 13 -14 9 58 -16 3 6 * 1 1 Aug.......... 104 7 18 16 40 20 11 113 -6 -9 4 * * 2 Sept...... 225 -4 36 37 49 29 6 154 26 20 22 * * 2 Oct........... 158 -3 23 13 -1 32 21 85 31 30 13 -1 * -1 Nov.......... 98 7 13 18 11 3 31 84 6 1 * * * 7 Dec........... 216 39 27 8 39 14 11 137 40 32 4 * * 3 1971-Jan............ 130 -13 27 14 26 7 46 107 11 6 -3 * -1 11 Feb........... -32 -23 28 9 -6 -23 21 7 -34 -5 * * * * Mar.......... -26 -26 11 2 -27 -11 -8 -59 1 18 9 * * 6 Apr........... -1 8 -10 8 -4 -18 -9 -24 -7 14 11 * -1 6 MayP........ 10 9 * 13 10 -6 -3 24 -17 -4 1 -1 * 7 Junep........ -11 3 3 12 9 -19 -24 -17 -11 -4 7 * * 14 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 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 c l 1969..................... 1,195 97 200 14 169 251 83 815 32 14 -11 -1 10 336 1970..................... 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971—Jan.-June*5 345 16 34 2 66 69 43 229 45 13 -5 * -16 79 1970—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 21 106 1 25 * 3 -1 2 31 16 -6 1 * * 64 Oct........... 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 Mayp........ 23 -1 27 * -3 11 -6 28 * 3 -1 * -2 -6 June*3........ -3 -1 -1 * -1 -4 * -7 11 2 -3 * -2 -3 Note.—Statistics include State and local govt, securities, and securities the United States. Also includes issues of new debt securities sold abroad of U.S. Govt, agencies and corporations that are not guaranteed by by U.S. corporations organized to finance direct investments abroad. 19. NET PURCHASES OR SALES BY FOREIGNERS OF 20. FOREIGN CREDIT AND DEBIT LONG-TERM FOREIGN SECURITIES, BY AREA BALANCES IN BROKERAGE ACCOUNTS (In millions of dollars) (Amounts outstanding; in millions of dollars) Total Credit Debit Period Total I a r n n e t d ­ l. c e f o o i u g r n n ­ ­ r E o u p ­ e C a a d n a ­ A L i a m c t a i e n r­ Asia r A ic f a ­ O c t o r t i u h e n e s r ­ E pe n r d i o o d f fo b ( r a d e l u i a g e n n c t e e o r s s ) f ( o b d r a u e l e i a g n f n r c e o e r m s s ) gional tries 1967...................................... 311 298 1969.......................... -1,544 66-1,610 74-1,128 -98 -471 -6 20 636 508 1970.......................... -894 -254 -641 50 -569 -11 -125 -6 20 553 393 1971—Jan.-JuneP... -790 -219 -571 -54 -233 -5 -306 5 21 566 397 467 297 1970—June ............. 30 5 25 1 39 -1 -15 1 434 278 July.............. -132 -38 -94 9 -78 -23 -1 * Aug............... -222 -158 -64 4 -127 56 2 1 368 220 Sept............... 3 16 -13 5 22 -30 -12 2 334 182 -197 -91 -106 -33 -51 3 -27 2 291 203 Nov............... -1 3 -4 -10 15 -2 -9 -1 1 349 279 Dec................ -125 4 -129 -22 -74 -5 -31 -1 4 1971—Mar. *........................ 511 314 1971—Jan................. -313 -197 -117 2 -82 -10 -29 2 Feb................ -21 -4 -17 -21 27 4 -29 1 Mar............... -50 11 -61 6 -34 11 -44 — 1 1 Note.—Data represent the money credit balances and Apr................ -129 -46 -83 -34 29 -2 -79 1 money debit balances appearing on the books of reporting Mayp............ -126 4 -130 -4 -62 -13 -52 2 brokers and dealers in the United States, in accounts of June25............ -150 13 -163 -3 -111 5 -72 6 14 foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 Wednesday Amount Wednesday 1971 Maturity of liability 1966 1970 1971 —Continued Mar. Apr. May J S D M u e e n a p c r e t . . . 2 2 2 3 8 8 9 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4 , , , , 9 8 4 0 5 7 7 3 1 9 2 6 A J M F M a e p n a a b r y . r . . . 2 2 2 2 2 7 9 5 5 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 1 2 3 3 1 , , , , , 9 3 6 0 8 4 4 0 8 8 4 6 6 5 5 Mar. 2 1 1 4 3 7 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 6 5 5 , , , , 5 3 8 6 0 1 8 3 0 8 6 6 O C Ot a v h l e e l r . r n . . l . i i . g a .. h b .. t i . l . . . i . . . t . . i . . e . . . . s . . , . . . . m . . . . . . . a . . . . t . . u . . . . . r . . i . . n . . . . g . . . . . 1 1 . . 6 9 2 6 2 1 . . 3 5 2 2 1 1 . . 4 8 7 8 June 24................ 12,172 31............... 4,358 in following calendar July 29................ 10,469 months after report J M un ar e . 2 29 8 . . . . . . . . . . . . . . . . . . 1 . . . . 9 . . . 6 . . . 7 . . . . . . . ....3 3 ,4 ,1 1 6 2 6 A S O e u c p t g . t . . 2 2 3 8 6 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 9 0 , , , 2 6 6 9 6 2 7 3 9 Apr. 2 1 7 1 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 5 , , , 7 2 3 5 5 1 9 2 8 da 2 3 te n r : d d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 3 0 . . . 5 7 03 0 2 4 5 8 . . . 2 2 2 1 2 4 9 5 3 . . . 2 0 0 7 8 6 Sept. 27......................4,059 Nov. 4................ 9,024 28............... 5,166 4th.............................. 2.08 1.80 1.59 Dec. 27......................4,241 11................ 8,892 5th.............................. 1.57 1.47 1.56 18................ 8,766 6th.............................. 1.32 1.57 1.67 1968 Dec. 2 1 2 9 5 . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 8 8 8 , , , , 4 2 2 3 5 3 0 1 5 5 2 5 May 2 1 1 5 6 9 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 5 , , , , 6 6 0 5 0 3 1 8 6 6 2 7 1 7 9 8 0 t t t t h h h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 3 2 3 0 0 2 . . . . 2 2 3 3 5 8 7 2 . . . . 2 2 3 4 3 3 6 0 Mar. 27......................4,920 2 3 7,902 11th.............................. .20 .28 .35 June 26.......................6,202 30................ 7,676 June 2............... 4,885 12th.............................. .26 .32 .23 Sept. 25......................7,104 9............... 4,946 Maturities of more than 1 Dec. 31 (1/1/69)... 6,039 1971 16............... 5,331 year............................... .70 .73 .72 Jan. 6................ 7,424 23............... 5,331 13................ 7,863 30............... 4,520 1969 20................ 7,823 28.01 28.91 28.10 27............... 7,536 J S D M u e e n a p c r e t . . . 2 3 2 2 5 1 4 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 3 9 4 2 , , , , 2 6 3 8 6 4 0 2 5 9 1 9 Feb. 2 1 1 3 0 . . 7 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6 6 7 , , , , 4 8 6 2 3 7 6 3 2 3 6 2 July 2 2 1 7 8 1 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 4 5 , , , , 9 7 6 1 2 7 4 9 6 6 7 1 t d f h o e e r p N o w B o s t i a h t e h i s . c a — h a m n I s a d n u s c d c l h a u ir n d e d d e c s e t p o b o i f o n s r a t i r e t l o s l r e w o s a i t t n n - h d b g e e s r a d o r f i i r o f n e r a g c e l t i l g U b b n r o . a S b r n r . r o c a h w d n e o c i s n h ll g e a in s s r amount to $50 million or more. Note.—The data represent gross liabilities of reporting banks to their branches in foreign Details may not add to totals due to rounding. countries and U. S. Treasury Certificates Eurodollar Series and special Export-Import Bank securities held by foreign branches as follows: $1,000 million, Jan. 27, 1971-Feb. 24; $1,500 million, Mar. 3-Apr. 7; $3,008 million, Apr. 14-July 7; $3,047 million, July 14 and 21; and $3,150 million, July 28. Beginning July 28 all of the securities held are U. S. Treasury Certificates Eurodollar Series. 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 FOREIGN OFFICIAL ACCOUNT (Amounts outstanding; in millions of dollars) (In millions of dollars) Payable in Assets in custody Payable in dollars foreign currencies End of period Deposits End of United U.S. Govt. Earmarked period Total Short­ Short­ King­ Canada securities1 gold Deposits in te v r e m st ­ Deposits in te v r e m st ­ dom ments 1 ments 1 1968.............. 216 9,120 13,066 1969.............. 134 7,030 12,311 1968................... 1,638 1,219 87 272 60 979 280 1970—July... 199 11,803 12,217 1 Q£Q 7 /1,319 952 116 174 76 610 469 Aug... 173 12,489 12,283 11,454 1,025 161 183 86 663 519 Sept... 136 13,983 12,611 Oct.... 142 14,458 12,617 1970— May....... 1,459 1,011 200 138 109 837 331 Nov... 136 16,196 12,644 June........ 1,476 1,041 174 148 112 754 359 Dec... 148 16,226 12,926 July........ 1,423 1,009 181 159 74 752 309 Aug......... 1,276 868 164 151 94 662 297 1971—Jan.... 129 16,206 12,958 Sept......... 1,375 889 183 177 126 668 382 Feb. .. 147 18,033 12,981 Oct.......... 1,418 905 177 177 159 641 440 Mar... 201 20,534 13,057 Nov........ 1,436 924 171 175 166 628 472 Apr... 162 22,879 13,095 Dec.r___ 1,046 619 133 173 121 363 417 May. . 208 28,126 13,447 June.. 199 26,544 13,509 1971—Jan,r. . .. 1,212 795 124 180 114 511 363 July... 162 28,574 13,559 Feb.r.... 1,271 786 152 193 141 539 401 Mar.r__ 1,450 983 147 177 143 706 377 Apr.r.... 1,468 967 163 202 136 687 390 1 Marketable U.S. Treasury bills, certificates of in­ May....... 1,543 934 147 295 168 626 434 debtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and 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 Note.—Excludes deposits and U.S. Govt, securities obligation was incurred by the foreigner. held for international and regional organizations. Ear­ 2 Data on the two lines for this date differ 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 Tables 25 and 26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 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 1970 1971 1970 1971 Mar. June Sept. Dec. Mar.P Mar. June Sept. Dec. Mar.p Europe: 3 4 6 8 11 7 8 9 10 10 72 71 66 46 47 60 58 54 47 49 3 3 3 2 9 17 17 16 17 16 1 1 1 2 2 8 8 13 11 8 127 156 141 127 112 155 176 154 150 159 Germany, Fed, Rep. of....... 193 164 166 139 122 172 174 192 209 191 Greece................................... 3 3 3 4 4 19 27 28 28 34 83 85 70 77 71 169 173 160 163 175 110 116 121 128 115 72 72 62 62 65 5 5 5 4 12 13 13 16 15 6 5 10 13 14 14 18 14 15 13 55 47 48 24 27 78 72 73 81 93 29 31 35 34 28 27 27 25 40 53 157 157 183 159 122 47 37 45 47 38 2 2 3 4 3 12 11 13 8 17 556 635 641 787 694 1,198 1,081 1,010 689 1,020 2 1 1 2 1 19 15 17 17 16 Other Western Europe........ 19 21 21 11 1 11 12 9 9 12 Eastern Europe..................... 2 3 5 4 4 17 20 24 24 16 1,428 1,509 1,532 1,573 1,392 2,111 2,020 1,932 1,643 1,997 204 204 213 215 199 635 683 696 751 709 Latin America: Argentina.............................. 11 15 10 11 14 55 62 61 61 65 Brazil...................................... 13 14 17 19 15 97 100 107 120 105 Chile....................................... 8 9 11 11 13 42 37 42 48 40 Colombia............................... 6 5 6 6 6 36 37 37 37 36 Cuba....................................... * * * * * 1 1 1 1 1 Mexico................................... 24 21 28 22 20 143 135 149 156 143 Panama................................. 8 5 5 5 6 19 19 18 18 21 Peru....................................... 10 6 6 4 4 34 37 29 36 35 Uruguay................................ 5 5 5 4 4 8 6 5 6 7 Venezuela.............................. 13 19 14 18 17 69 65 72 68 70 Other L.A. republics............ 27 28 35 37 29 92 102 97 100 96 Bahamas and Bermuda........ 46 57 89 144 130 84 159 139 121 210 Neth. Antilles and Surinam. 4 38 24 23 5 7 8 10 9 8 Other Latin America............ 5 6 5 6 5 25 19 23 29 21 Total.............................. 178 229 255 310 268 713 786 790 809 858 Asia: Hong Kong........................... 7 7 8 i 9 8 14 17 19 17 19 India...................................... 27 37 41 i 38 25 36 41 42 34 39 Indonesia............................... 5 7 ! 7 9 5 11 17 14 21 20 Israel..................................... 15 17 1 21 24 28 34 23 21 23 24 Japan..................................... 132 114 ! 135 144 165 297 311 314 323 348 1 2 i 1 1 11 27 50 29 42 48 Philippines............................. 6 7 : 7 7 7 32 33 32 30 30 Taiwan................................... 4 4 8 9 10 23 29 27 33 32 3 3 4 4 4 15 15 13 11 12 Other Asia............................. 26 ; 28 47 50 59 113 125 145 145 155 Total.............................. 227 227 282 296 323 602 662 657 678 727 Africa: C So o u n t g h o A (K fri i c n a s . h .. a .. s . a .. ) .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 3 1 1 9 4 15 1 34 2 31 2 28 4 35 5 : ' : 29 4 30 3 32 5 U.A.R. (Egypt)..................... 1 2 U2 1 2 9 10 j 11 9 10 Other Africa......................... 33 37 51 40 19 47 49 48 50 53 Total.............................. 56 72 90 78 54 87 99 92 92 100 Other countries: Australia............................... 65 70 75 75 81 65 85 71 80 86 All other............................... 6 6 5 7 8 13 14 15 15 13 Total.............................. 71 76 80 82 89 78 100 86 94 99 International and regional. . .. * * * * * 1 2 1 1 3 Grand total................... 2,166 2,317 2,453 2,555 2,325 4,227 4,350 4,253 4,068 4,492 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 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ AUGUST 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 a la b r l s e c P u fo r a r r y e i e n a n i b g c l n i e es Total P d a o y i l n l a a b r l s e D ba e n p k o s s i a ts b r w o i a t d h in reporter’s Other name 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...................... ( 1,371 1,027 343 2,946 2,529 201 216 Dec.1................... 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....................... 2,555 2,123 433 4,068 3,485 234 349 1971—Mar...................... 2,325 1,908 417 4,492 3,885 230 377 1 Data differ from that shown for Dec. in line above because of changes in reporting coverage. 27. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e n i r ca Japan O A t s h i e a r Africa o A th l e l r 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. i..................... \ 428 1,570 43 263 322 212 91 274 128 132 89 16 1968—Mar........................ 582 1,536 41 265 330 206 61 256 128 145 84 21 June....................... 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept........................ 767 1,625 43 313 376 198 62 251 126 142 82 32 Dec......................... 1,129 1,790 147 306 419 194 73 230 128 171 83 38 1969—Mar........................ 1,285 1,872 175 342 432 194 75 222 126 191 72 43 June....................... 1,325 1,952 168 368 447 195 76 216 142 229 72 40 Sept........................ 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec........................ ( 1,725 2,215 152 433 496 172 73 388 141 249 69 42 Dec. i..................... \ 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........................ 3,085 2,907 146 708 645 181 60 603 140 290 71 64 1971—Mar........................ 3,130 2,940 154 688 646 179 63 600 161 299 78 72 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

AUGUST 1971 □ MONEY RATES A 91 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............................................................. 326.589 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 1Q70—Tnlv.................................................. 24.934 111.12 3.8670 2.0146 496.872 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 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- 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 23.602 112.43 4.0021 2.0109 97.913 16.792 13.342 23.735 July.................................................. 22.642 112.42 4.0040 2.0133 97.912 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 en an ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ s r) 1966............................................................. 20.352 25.007 6 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 8 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 1970............................................................. 18.087 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 1970—Tnlv.................................................. 18.120 27.537 13.219 239.06 .15893 .27826 32.308 8.0056 27.694 18.109 27.537 13.212 238.77 .15928 .27915 32.287 8.0056 27.775 18.112 27.537 13.211 238.53 .16005 .27935 32.314 8.0056 27.785 18.104 27.531 13.217 238.74 .16052 .27948 32.395 8.0056 27.781 18.120 27.544 13.231 239.03 .16064 .27956 32.402 8.0056 27.793 18.107 27.437 13.229 239.06 .16039 .27959 32.382 8.0056 27.763 1971- 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 18.129 27.538 13.304 241.87 .16063 .27971 32.616 8.0056 27.816 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 June.................................................. 18.092 28.474 13.346 241.87 .16009 .27979 32.720 8.0056 28.065 July.................................................. 18.136 28.728 13.347 241.85 .16048 .27980 32.733 8.0056 28.097 Period (po N un e d w ) Zeal ( a d n o d llar) N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o a fr u n i t c d h a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r r w l a a i n n tz c d ­ ) ( U p K d o n i o u n i m t n g e d d ­ ) 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—Tnlv.................................................. 111.23 13.951 3.4913 138.93 1.4290 19.282 23.235 239.06 111.10 13.998 3.4898 138.76 1.4290 19.306 23.247 238.77 110.98 13.994 3.4886 138.62 1.4287 19.225 23.219 238.53 111.08 13.993 3.4893 138.74 1.4290 19.282 23.090 238.74 111.22 13.996 3.4924 138.91 1.4290 19.324 23.155 239.03 111.23 14.021 3.4919 138.93 1.4290 19.340 23.187 239.06 1971- 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 June.................................................. 112.55 14.062 3.5027 140.57 1.4290 19.370 24.409 241.87 July.................................................. 112.53 14.073 3.5016 140.55 1.4292 19.371 24.423 241.85 1 Effective Feb. 14, 1966, Australia adopted the decimal currency 8 Effective Oct. 26, 1969, the new par value of the German mark was system. The new unit, the dollar, replaces the pound and consists of 100 set at 3.66 per U.S. dollar. cents, equivalent to 10 shillings or one-half the former pound. 9 Effective May 10, 1971, the German mark and Netherlands guilder 2 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 have been floated. to 4.2 markkaa per U.S. dollar. 10 Effective July 10,1967, New Zealand adopted the decimal currency 3 A new Argentine peso, equal to 100 old pesos, was introduced on system. The new unit, the dollar, replaces the pound and consists of 100 Jan. 1, 1970. In five steps the peso was devalued to 4.70 per U.S. dollar cents, equivalent to 10 shillings or one-half the former pound. effective July 30, 1971. 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,” 7 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to Section 15 of Supplement to Banking and Monetary Statistics, 1962. 5.55 francs per U.S. dollar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 92 MONEY RATES □ AUGUST 1971 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of July 31, 1970 Rate Country 1970 1971 as of July 31, Per Month 1971 cent effective Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July 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.............................. 7.0 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 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 8.50 8.50 France............................... 8.0 Oct. 1969 7.5 7.0 6.5 6.75 6.75 Germany, Fed. Rep. of... 7.0 July 1970 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 5.25 5.25 Korea................................. 24.0 Apr. 1970 23.0 20.0 20.0 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.......... June 1969 10.0 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 9.25 9.25 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, 4l/i rediscounts, and cash position loans; and 18 per cent for selective redis­ per cent for advances against government bonds, and 5% 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

AUGUST 1971 □ MONEY RATES; ARBITRAGE A 93 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 Tr b e i a l s ls u , ry Da d y a - y to- Bankers’ Tr b e i a l s ls u , ry Da d y a - y to- a B llo an w k a e n r c s e ’ Da d y a - y to- Tr HD ea illl s ll o ca u n , ry Da d y a - y to- Tr b e i a l s ls u , ry Da d y a - y to- d P is r c iv o a u t n e t 3 months i money2 3 months 3 months money deposits money 3 days 4 money 5 3 months money rate 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—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 5.53 4.75 4.23 3.59 1.13 5.25 May............ 3.06 2.76 7.06 5.65 5.36 4.00 5.84 4.75 2.31 3.88 1.84 5.25 June............ r3.15 r3.01 6.74 r5.60 r4.71 r4.00 4.25 6.95 4.39 2.91 5.25 July............. 3.58 3.64 6.42 5.57 5.00 4.00 1 1 Based on average yield of weekly tenders during month. 5 Monthly averages based on daily quotations. 2 Based on weekly averages of daily closing rates. Note.—For description and back data, see “International Finance,’ 3 Rate shown is on private securities. Section 15 of Supplement to Banking and Monetary Statistics, 1962. 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 Date q K ( u U i a o n U d n t g j . i a . S d t t e o i . t d o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) P d f ( ( p r o i + e - s o r c m ) w ) u o n i a u o o u r d n n r m d t i L n ( o c f N e n a o n v d e f t o o t iv r n e ) qu A i o n t s ed Cana q d A u a o U d t j . a . S ti t . o o n U S n ta i t t e e s d C S ( a f p a n o r v a e f o d ad r a) C d f ( ( d o a i + s - o n r c w ) l ) a o l d a a u o o r i r n n r a s d t n i C n ( c a f N e a n o n v a e f t o d t iv r a e ) basis) Canada basis 1971 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 June 4.............. 5.52 4.18 1.34 -1.06 .28 3.05 2.99 4.18 -1.19 1.30 .11 11.............. 5.53 4.56 .97 -1.16 -.19 3.06 3.00 4.56 -1.56 1.27 -.29 18.............. 5.53 4.81 .72 -.92 -.20 3.09 3.02 4.81 -1.79 1.56 -.23 25.............. 5.53 4.76 .77 -.87 -.10 3.19 3.12 4.76 -1.64 1.56 -.08 July 2.............. 5.53 5.14 .39 -.80 -.41 3.40 3.33 5.14 -1.81 1.10 -.71 9.............. 5.50 5.33 .17 -.58 -.41 3.55 3.47 5.33 - 1.86 1.27 -.59 16.............. 5.56 5.37 .19 -.37 -.18 3.56 3.48 5.37 -1.89 1.39 -.50 23.............. 5.56 5.28 .28 -.96 -.68 3.53 3.45 5.28 -1.83 1.28 -.55 30.............. 5.56 5.20 .36 -.63 .27 3.70 3.62 5.20 -1.58 1.35 -.23 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 94 GOLD RESERVES □ AUGUST 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 St n a 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—June. 41,170 2,544 11,889 26,735 205 140 270 714 1.520 45 84 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.. 41,285 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 47 Mar... 2>41,260 4,404 10,963 *>25,895 191 140 239 714 1,466 45 42 791 47 Apr... 4,338 10,925 191 140 253 728 1,502 46 42 791 47 May.. 4,448 10,568 191 140 254 r747 1,592 46 22 792 47 June*5. 4,523 10,507 191 254 747 1,584 46 22 792 Ger­ E pe n r d i o o d f lo C m o b ­ ia m De a n rk ­ 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 3,729 4,248 77 247 141 112 2,107 304 196 5 35 97 4,706 4,410 78 281 146 110 2,404 328 196 6 26 108 5,238 4,292 120 243 130 106 2,414 329 196 7 31 107 5,234 4,228 130 243 144 115 2,400 338 196 8 31 114 3,877 4,539 140 243 158 193 2,923 356 196 9 26 89 3,547 4.079 130 243 158 193 2,956 413 1970—June. 26 89 3.543 4.080 120 243 158 151 2.982 472 July.. 26 89 3.543 4.080 120 243 158 151 2.983 473 Aug.. 26 89 3.537 4.080 120 243 158 151 2.983 474 Sept.. 26 89 3.537 4.081 119 243 148 151 2.983 530 Oct.., 26 64 3.537 4.081 119 243 148 151 2.983 530 Nov.. 18 64 3,533 4.081 117 243 131 144 2,981 532 Dec.. 17 64 3.532 3,980 117 243 131 144 2,887 532 1971—Jan... 17 64 3.532 3,979 114 243 131 144 2,886 532 Feb.. 17 64 3,531 3,978 99 243 131 144 2,885 534 Mar.. 16 64 3.527 3,977 99 243 131 144 2.884 539 Apr.. 16 64 3.527 4,029 99 243 131 143 2.884 636 May. 16 64 3.523 4,035 99 243 130 143 2.884 641 June*3 16 64 3.523 4,046 99 243 131 143 2.884 641 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 N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ Po g r a t l u­ A S r a a u b d i i a 196 4 48 183 17 7 169 34 1,688 31 53 67 23 523 78 196 5 52 182 68 2 158 21 1,756 31 53 67 38 576 73 196 6 67 193 68 1 109 21 1,730 18 53 65 44 643 69 196 7 136 193 68 31 166 21 1,711 18 53 20 60 699 69 196 8 122 288 85 66 165 21 1,697 24 54 20 62 856 119 196 9 86 288 85 63 169 21 1,720 25 54 25 45 876 119 1970—June. 86 288 85 63 171 21 1 ,730 27 54 40 50 890 119 July.. 86 288 85 63 171 21 1.750 27 54 40 53 890 119 Aug.. 86 288 85 63 171 21 1.751 27 54 40 54 901 119 Sept.. 86 288 85 63 176 21 1,801 34 54 40 56 902 119 Oct... 86 288 85 63 176 21 1,801 33 54 40 59 902 119 Nov.. 86 288 85 63 176 21 1,832 23 54 40 59 902 119 Dec.. 86 288 85 48 176 21 1,787 23 54 40 56 902 119 1971—Jan... 86 288 85 48 176 21 1,812 23 54 40 58 902 119 Feb.., 86 322 85 48 176 21 1,812 23 54 40 59 902 119 Mar.. 86 322 85 48 176 21 1,812 23 54 40 60 902 119 Apr.. 86 322 85 48 182 21 1,863 31 54 40 61 902 119 May. 87 322 85 53 21 1.867 32 54 40 62 902 119 Junep 87 322 85 1.867 32 55 40 63 902 119 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 □ GOLD RESERVES AND PRODUCTION A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS— Continued (In millions of dollars) Bank E pe n r d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g e ­ d U gu r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n o t 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—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 1.469 165 404 52 -519 Aug., 920 534 225 2.720 82 92 126 93 1,457 165 404 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 1.454 165 404 52 -308 Nov., 788 534 225 2.720 82 92 126 93 1,354 161 384 52 -305 Dec.. 666 498 200 2,732 82 92 126 85 1,349 162 384 52 -282 1971—Jan.. 632 498 200 2.731 82 92 126 85 1,246 162 384 32 -173 Feb.. 632 498 200 2.731 82 82 126 85 1,224 162 384 32 -173 Mar. 634 498 200 2,806 82 82 127 85 1,123 162 384 32 -73 Apr.. 630 498 200 2,806 84 81 127 85 152 389 52 13 May. 630 498 200 2,807 81 127 85 152 389 52 118 June'J 551 498 200 2,857 81 127 389 52 213 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank’s gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold*” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period p t r i o o d n u c 1 ­ A So fr u ic th a Ghana C s ( h K o a n i s n g a ­ o ) U St n a i t t e e s d C ad an 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 i i n l e ip s ­ t A ra u l s ia ­ o A th l e l r 1965.. 1.440.0 1,069.4 26.4 2.3 58.6 125.6 7.6 5.4 11.2 4.6 18.1 15.3 30.7 64.8 1966.. 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 1967.. 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1968.. 1.420.0 1,088.0 25.4 5.9 53.9 94.1 6.2 4.9 8.4 4.0 21.5 18.5 27.6 61.6 1969.. 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 1970p. 1,128.0 24.8 6.2 81.8 6.7 7.1 3.7 24.8 21.1 21.6 1970—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 1.7 Nov.. 6.5 .6 .3 1.7 Dec.., 6.8 .5 .3 2.0 1971—Jan.. 7.0 .4 1.7 Feb.. 6.6 .6 1.6 Mar.. 6.7 .5 Apr.. 6.5 May. 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

A 96 BANKING OFFICES □ AUGUST 1971 NUMBER OF BANKING OFFICES IN THE UNITED STATES Commercial banks Mutual savings banks All Member Nonmember Type of office and type of change banks Total Total Na­ State Total Insured Non­ Insured 1 Non­ tional insured insured Banks (head office): Dec. 31, 1934............................................................ 16,063 15,484 6,442 5,462 980 9,042 7,699 1,343 68 511 Dec. 31, 1941............................................................ 14,826 14,278 6,619 5,117 1,502 7,662 6,810 852 52 496 Dec. 31, 1947 2......................................................... 14,714 14,181 6,923 5,005 1,918 7,261 6,478 783 194 339 Dec. 31, 1951............................................................ 14,618 14,089 6,840 4,939 1,901 7,252 6,602 650 202 327 Dec. 31, 1960............................................................ 13,986 13,472 6,174 4,530 1,644 7,300 6,948 352 325 189 Dec. 31, 1965............................................................ 14,309 13,804 6,221 4,815 1,406 7,583 7,320 263 328 177 Dec. 31, 1966............................................................ 14,274 13,770 6,150 4,779 1,351 7,620 7,385 235 330 174 Dec. 31, 1967............................................................ 14,222 13,721 6,071 4,758 1,313 7,650 7,439 211 331 170 Dec. 31, 1968............................................................ 14,179 13,679 5,978 4,716 1,262 7,701 7,504 197 333 167 Dec. 31, 1969............................................................ 14,158 13,662 5,871 4,669 1,202 7,791 7,595 196 330 166 Dec. 31, 1970............................................................ 14,181 13,688 5,768 4,621 1,147 7,920 7,735 185 328 165 June 30, 1971 ............................................................ 14,220 13,730 5,737 4,599 1,138 7,993 7,811 182 326 164 Branches, additional offices, and facilities: Dec. 31, 1934............................................................ 3,133 3,007 2,224 1,243 981 783 7133 126 Dec. 31, 1941............................................................ 3,699 3,564 2,580 1,565 1,015 984 932 52 32 103 Dec. 31, 1947 2.......................................................... 4,332 4,161 3,051 1,870 1,181 1,110 1,043 67 124 47 Dec. 31, 1951............................................................ 5,383 5,153 3,837 2,370 1,467 1,316 1,275 41 165 65 Dec. 31, 1960............................................................ 10,969 10,483 8,133 5,509 2,624 2,350 2,303 47 381 105 Dec. 31, 1965............................................................ 16,471 15,756 12,298 8,964 3,334 3,458 3,404 54 583 132 Dec. 31, 1966............................................................ 17,665 16,908 13,129 9,611 3,518 3,779 3,717 62 614 143 Dec. 31, 1967............................................................ 18,757 17,928 13,856 10,183 3,673 4,072 4,026 46 669 160 Dec. 31, 1968............................................................ 19,911 19,013 14,553 10,985 3,568 4,460 4,414 46 729 169 Dec. 31, 1969............................................................ 21,196 20,208 15,204 11,727 3,477 5,004 4,957 47 810 178 Dec. 31, 1970............................................................ 22,727 21,643 16,191 12,536 3,655 5,452 5,404 48 891 193 June 30, 1971 ............................................................ 23,472 22,331 16,608 12,901 3,707 5,723 5,683 40 938 203 Changes Jan.-June 30, 1971 Banks: New banks ............................................................... 101 100 17 13 4 83 81 2 1 Consolidations and absorptions: Banks converted into branches........................... -57 -53 -28 -24 -4 -25 -25 -3 -1 Ceased banking operations ......................... -1 -1 -1 -1 Voluntary liquidations 3.......................................... -3 -3 -3 -1 -2 Suspensions................................................................ -2 -2 -2 -1 -1 Reopening of suspended banks 1 1 1 1 Interclass changes: Nonmember to national....................... 3 3 -3 -3 Nonmember to state member 1 1 -1 -1 State member to nonmember............................... -10 -10 10 10 National to nonmember .... . . ... -14 -14 14 14 Noninsured to insured......................................... 2 -2 Net change................................................................. 39 42 -31 -22 -9 73 76 -3 -2 -1 Number of banks, June 30, 1971............................. 14,220 13,730 5,737 4,599 1,138 7,993 7,811 182 326 164 Branches and additional offices: De novo.................................................................... 764 710 448 364 84 262 262 44 11 Banks converted........................................................ 50 47 37 27 10 10 10 3 Discontinued............................................................. -54 — 53 -40 -28 -12 -13 -12 -1 -1 Sale of branch........................................................... -1 -1 -1 -1 Interclass changes: Nonmember to national . . . . 8 8 -8 -8 Nonmember to State member ................... 5 5 -5 -5 State member to national ..................... 17 -17 State member to nonmember............................. -11 -11 11 11 National to nonmember ..................................... -9 -9 9 9 Noninsured to insured ............. 7 -7 Noninsured mutual savings to insured mutual 1 -1 Facilities reclassified as branches ............... 1 1 1 1 Other ..................................................................... -9 -10 -16 -9 -7 6 5 1 Net change................................................................ 751 694 423 371 52 271 279 -8 47 10 Number of branches and additional offices, June 30, 1971................................................................. 23,259 22,118 16,428 12,733 3,695 5,690 5,650 40 938 203 Banking facilities:4 Established ..................... ............................. 1 1 1 1 Discontinued ..................... -2 -2 -2 -2 Facilities reclassified as branches -1 -1 -1 -1 Other • • -4 -4 -4 -4 Net change -6 -6 -6 -6 Number of facilities June 30 1971 213 213 180 168 12 33 33 1 Insured mutual savings banks figures include one to three member 3 Exclusive of liquidations incident to succession, conversion, and mutual savings banks, 1941 to 1962 inclusive, not reflected in total com­ absorption of banks. mercial bank figures. 4 Provided at military and other Govt, establishments through arrange­ 2 Series revised as of June 30, 1947. The revision resulted in an addition ments made by the Treasury Dept. of 115 banks and nine branches. Note.—Beginning with 1959, figures include all banks in Alaska and Hawaii, but nonmember banks in territories and possesssions are excluded. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

AUGUST 1971 o FEDERAL RESERVE PAR LIST A 97 NUMBER OF PAR AND NONPAR BANKING OFFICES Par Total Nonpar (nonmember) F.R. district, Total Member Nonmember State, or other area Branches Branches Branches Branches Branches Banks and offices Banks and offices Banks and offices Banks and offices Banks and offices Total, including Puerto Rico and Virgin Islands:1 Dec. 31, 1970..................... 13,600 21,848 13,099 21,670 5,768 16,227 7,331 5,443 501 178 June 30, 1971 ..................... 13,644 22,521 13,196 22,283 • 5,737 16,644 7,459 5,639 448 238 F.R. districts, June 30, 1971: Boston................................. 373 1,647 373 1,647 228 1,205 145 442 New York 1........................ 472 3,552 472 3,552 341 3,130 131 422 Philadelphia........................ 450 1,619 450 1,619 317 1,167 133 452 Cleveland............................. 790 2,012 790 2,012 470 1,660 320 352 Richmond............................ 731 3,111 695 3,064 361 1,900 334 1,164 36 47 Atlanta................................ 1,671 1,531 1,558 1,450 553 982 1,005 468 113 81 Chicago............................... 2,578 2,366 2,578 2,366 939 1,549 1,639 817 St. Louis............................. 1,516 893 1,449 865 457 472 992 393 67 28 Minneapolis........................ 1,368 289 1,192 221 489 135 703 86 176 68 Kansas City........................ 1,958 306 1,958 306 798 195 1,160 111 Dallas................................... 1,348 257 1,292 243 633 129 659 114 56 14 San Francisco..................... 389 4,938 389 4,938 151 4,120 238 818 State or area, June 30, 1971: Alabama............................. 273 281 213 260 109 213 104 47 60 21 Alaska................................. 11 65 11 65 5 58 6 7 Arizona................................ 13 337 13 337 4 243 9 94 Arkansas............................. 252 168 185 140 81 104 104 36 67 28 California............................ 144 3,099 144 3,099 68 2,752 76 347 Colorado............................. 232 25 232 25 138 19 94 6 Connecticut......................... 58 453 58 453 29 350 29 103 Delaware............................. 18 93 18 93 7 46 11 47 District of Columbia.......... 14 106 14 106 12 99 2 7 Florida................................. 516 40 516 40 232 14 284 26 Georgia............................... 434 354 434 354 70 249 364 105 Hawaii................................. 7 141 7 141 1 9 6 132 Idaho................................... 24 160 24 160 13 140 11 20 Illinois.................................. 1,119 102 1,119 102 490 69 629 33 Indiana................................ 406 647 406 647 184 406 222 241 Iowa..................................... 665 325 665 325 148 88 517 237 Kansas................................. 601 70 601 70 202 42 399 28 Kentucky............................. 343 338 343 338 94 199 249 139 Louisiana............................. 232 402 141 328 59 220 82 108 91 Maine.................................. 39 236 39 236 25 174 14 62 Maryland............................. 114 548 114 548 48 339 66 209 Massachusetts..................... 159 763 159 763 99 595 60 168 Michigan............................. 330 1,227 330 1,227 204 1,006 126 221 Minnesota........................... 730 13 730 13 223 6 507 7 Mississippi........................... 184 358 184 358 45 159 139 199 Missouri.............................. 670 94 670 94 168 40 502 54 Montana............................. 141 7 141 7 90 5 51 2 Nebraska............................. 436 43 436 43 135 26 301 17 Nevada................................ 8 88 8 88 5 77 3 11 New Hampshire................. 73 66 73 66 49 55 24 11 New Jersey.......................... 210 1,057 210 1,057 155 922 55 135 New Mexico....................... 67 132 67 132 40 82 27 50 New York........................... 303 2,482 303 2,482 239 2,335 64 2 147 North Carolina................... 93 1,167 72 1,125 23 578 49 547 21 42 North Dakota..................... 168 71 78 25 46 14 32 11 90 46 Ohio..................................... 515 1,333 515 1,333 338 1,116 177 217 Oklahoma........................... 434 69 434 69 215 50 219 19 Oregon................................. 47 349 47 349 9 254 38 95 Pennsylvania....................... 460 1,761 460 1,761 319 1,314 141 447 Rhode Island...................... 13 175 13 175 5 95 8 80 South Carolina................... 101 438 86 433 26 257 60 176 15 5 South Dakota..................... 161 98 75 76 58 62 17 14 86 22 Tennessee............................ 308 507 308 507 90 320 218 187 Texas................................... 1,206 82 1,188 82 579 28 609 54 18 Utah.................................... 50 142 50 142 16 106 34 36 . Vermont.............................. 42 87 42 87 26 49 16 38 Virginia............................... 236 848 236 848 144 625 92 223 . Washington......................... 88 577 88 577 31 500 57 77 . West Virginia..................... 200 6 200 6 120 2 80 4 Wisconsin........................... 606 280 606 280 166 88 440 192 . Wyoming............................. 70 2 70 2 54 1 16 1 Puerto Rico 1..................... 13 184 13 184 19 13 165 Virgin Islands 1.................. 7 25 7 25 1 25 6 1 Puerto Rico and the Virgin Islands assigned to the New York District Note.—Includes all commercial banking offices in the United States, for purposes of Regulation J, “Check Clearing and Collection.” Member Puerto Rico, and the Virgin Islands on which checks are drawn, including branches in Puerto Rico and all except eight in the Virgin Islands are 213 banking facilities. Number of banks and branches differs from that branches of New York City banks. Certain branches of Canadian banks in the table on page A-96 of the Aug. 1971 Bulletin, because this table (two in Puerto Rico and one in Virgin Islands) are included above in the includes banks in Puerto Rico and the Virgin Islands but excludes banks table as nonmember banks; and nonmember branches in Puerto Rico and trust companies on which no checks are drawn. include eight branches of Canadian banks. 2 Includes fifteen New York City branches of three insured nonmember Puerto Rican banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 98 BANK HOLDING COMPANY GROUPS □ AUGUST 1971 BANKING OFFICES AND DEPOSITS OF BANKS IN HOLDING COMPANY GROUPS, DECEMBER 31, 1970 A. Details for 35 States and District of Columbia Number of offices Deposits Banks anti branches As a percent­ State Number of In age of all companies 1 Banks Branches As a percent­ millions commercial age of all of dollars bank Total commercial deposits banking offices i 121 895 3,260 4,155 78,064 Arizona..................................................................... 1 2 114 116 34.7 1,166 32.9 Arkansas................................................................... 1 2 13 15 3.6 247 8.0 California.................................................................. 6 11 309 320 10.2 4,776 9.7 Colorado................................................................... 7 40 4 44 15.7 2,237 51.2 Connecticut............................................................... 1 3 24 27 5.4 184 3.5 District of Columbia................................................ 2 2 13 15 12.8 325 11.4 Florida...................................................................... 20 159 1 160 31.1 6,788 48.6 Georgia..................................................................... 7 19 121 140 19.4 2,395 33.0 2 2 74 76 42.5 550 40.6 Illinois....................................................................... 1 3 3 .3 84 .2 3 25 28 53 5.4 717 10.8 Kentucky................................................................... 1 2 29 31 4.6 511 9.4 Maine........................................................................ 5 15 114 129 48.3 578 45.9 3 7 30 37 5.9 404 7.5 Massachusetts........................................................... 2 23 232 255 28.4 2,452 22.3 Minnesota................................................................. 8 124 9 133 18.0 5,457 59.7 Missouri.................................................................... 10 44 18 62 8.1 3,173 27.7 Montana................................................................... 4 36 1 37 25.7 866 52.4 Nebraska................................................................... 1 5 3 8 1.7 328 9.1 Nevada...................................................................... 1 2 43 45 48.4 720 62.5 New Hampshire....................................................... 1 6 8 14 10.3 136 13.1 New Jersey................................................................ 3 14 135 149 12.2 2,528 16.8 New Mexico.............................................................. 2 11 32 43 22.2 297 19.4 15 53 734 787 28.7 21,140 23.9 1 2 48 50 4.1 170 2.3 North Dakota.......................................................... 4 32 17 49 20.6 615 39.7 7 55 258 313 17.3 4,532 20.9 1 1 119 120 31.1 1,714 42.2 3 15 48 63 24.3 678 43.2 Tennessee.................................................................. 5 13 48 61 7.7 617 8.3 4 14 2 16 1.3 1,885 7.1 2 3 69 72 39.3 840 45.7 7 53 383 436 42.0 3,513 43.8 Washington.............................................................. 3 7 112 119 18.4 1,065 18.6 Wisconsin................................................................. 16 82 67 149 17.0 4,200 43.4 Wyoming.................................................................. 3 8 8 11.3 176 21.7 B. Summary totals and comparisons 35 States and District of Columbia Holding company groups as a per­ centage of all commercial banks in— United States— Item All commer­ Holding All cial banks 35 States United company commercial and District States groups banks of Columbia Number of banking offices—Total..................................... 4,155 26,138 35,102 15.9 11.8 Banks........................................................................... 895 10,360 13,686 Branches...................................................................... 3,260 15,778 21,416 Deposits (millions of dollars).............................................. 78,064 384,521 481,745 20.3 16.2 1 Data for individual States represent bank holding companies having that became bank holding companies as a result of “Bank Holding Com­ subsidiary banks in the respective States rather than bank holding compa­ pany Act Amendments of 1970,” approved December 31, 1970. (A list nies whose principal offices are located in such States. Total does not equal showing the names, offices, and total deposits of the banks in the holding sum of State figures because it has been corrected for duplications; that company groups is available upon request.) The data include: (1) banks of is, holding companies that have subsidiary banks in more than one State which the bank holding companies owned or controlled 25 per cent or are included in the total only once. The 121 bank holding companies in­ more of the outstanding stock, and (2) four domestic commercial banks cluded in the total represent only 111 separate bank groups. that are not subsidiaries of bank holding companies but are themselves bank holding companies. Note.—Holding companies referred to are as defined in the Bank Hold­ ing Company Act of 1956, as amended, but do not include companies Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 99 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM A rthur F. Burns, Chairman J. L. Robertson, Vice Chairman George W. M itchell J. Dewey Daane Sherman J. M aisel Andrew F. Brimmer W illiam W. Sherrill Robert C. Holland, Executive Director 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 EXECUTIVE DIRECTOR DIVISION OF RESEARCH AND STATISTICS Robert C. Holland, Executive Director J. Charles Partee, Director Gordon B. Grimwood, Program Director for Stephen H. Axilrod, Associate Director Contingency Planning and Defense Planning Samuel B. Chase, Associate Director Coordinator Lyle E. Gramley, Associate Director Harry J. Halley, Program Director for Man­ Stanley J. Sigel, Adviser agement Systems Murray S. Wernick, Adviser William W. Layton, Director of Equal Em­ Kenneth B. Williams, Adviser ployment Opportunity James B. Eckert, Associate Adviser Brenton C. Leavitt, Program Director for Peter M. Keir, Associate Adviser Banking Structure James L. Pierce, Associate Adviser Edward C. Ettin, Assistant Adviser Stephen P. Taylor, Assistant Adviser OFFICE OF THE SECRETARY Louis Weiner, Assistant Adviser Tynan Smith, Secretary Joseph S. Zeisel, Assistant Adviser Kenneth A. Kenyon, Deputy Secretary Levon H. Garabedian, Assistant Director Murray Altmann, Assistant Secretary Normand R. V. Bernard, Assistant Secretary DIVISION OF INTERNATIONAL FINANCE Arthur L. Broida, Assistant Secretary Robert Solomon, Director Elizabeth L. Carmichael, Assistant Secretary John E. Reynolds, Associate Director Robert L. Sammons, Associate Director John F. L. Ghiardi, Adviser LEGAL DIVISION A. B. Hersey, Adviser Thomas J. O’Connell, General Counsel Reed J. Irvine, Adviser Robert F. Sanders, Deputy General Counsel Samuel I. Katz, Adviser Grasty Crews, II, Adviser Bernard Norwood, Adviser Pauline B. Heller, Adviser Ralph C. Wood, Adviser Ralph C. Bryant, Associate Adviser Robert F. Gemmill, Associate Adviser DIVISION OF FEDERAL RESERVE BANK Samuel Pizer, Associate Adviser OPERATIONS James A. McIntosh, Director DIVISION OF SUPERVISION AND REGULATION John N. Kiley, Jr., Associate Director Frederic Solomon, Director Walter A. Althausen, Assistant Director Brenton C. Leavitt, Deputy Director Donald G. Barnes, Assistant Director Frederick R. Dahl, Assistant Director Harry A. Guinter, Assistant Director Jack M. Egertson, Assistant Director P. D. Ring, Assistant Director John P. Flaherty, Assistant Director James L. Vining, Assistant Director Janet O. Hart, Assistant Director Charles C. Walcutt, Assistant Director John N. Lyon, Assistant Director Lloyd M. Schaeffer, Chief Federal Reserve John T. McClintock, Assistant Director Examiner Thomas A. Sidman, Assistant Director Continued on next page Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER Edwin J. Johnson, Director John Kakalec, Controller John J. Hart, Assistant Director Harry J. Halle y, Deputy Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director DIVISION OF ADMINISTRATIVE SERVICES Charles L. Hampton, Associate Director Joseph E. Kelleher, Director Glenn L. Cummins, Assistant Director Donald E. Anderson, Assistant Director Henry W. Meetze, Assistant Director John D. Smith, Assistant Director Richard S. Watt, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 101 FEDERAL OPEN MARKET COMMITTEE A rthur F. Burns, Chairman A lfred Hayes, Vice Chairman Andrew F. Brimmer Monroe Kimbrel Frank E. M orris George H. Clay Sherman J. Maisel J. L. Robertson J. Dewey Daane Robert P. Mayo W illiam W. S herrill 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. M eyer, Jr., second federal reserve district, President A. W. Clausen, tw elfth federal reserve district, Vice President Mark C. Wheeler, first federal Gaylord Freeman, seventh federal reserve district reserve district G. Morris Dorrance, Jr., third federal Allen Morgan, eighth federal reserve district reserve district John S. Fangboner, fourth federal T. M. Reardon, ninth federal reserve district reserve district Joseph W. Barr, fifth federal Morris F. Miller, tenth federal reserve district reserve district Harry Hood Bassett, sixth federal John E. Gray, eleventh federal reserve district reserve district H erbert V. Prochnow, Secretary W illiam J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 FEDERAL RESERVE BANKS AND BRANCHES Federal Reserve Bank, branch, or facility Chairman President Vice President Zip code Deputy Chairman First Vice President in charge of branch 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 Yamall, 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 James H. Campbell 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 Culpeper Communications Center.................22701 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 Miami Office........ 33101 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 Eugene A. Leonard Little Rock........... .72203 A1 Pollard John F. Breen Louisville.............. ,40201 Ronald E. Reitmeier Donald L. Henry Memphis.............. .38101 C. Whitney Brown Laurence T. Britt Minneapolis.............. 55480 David M. Lilly Bruce K. MacLaury Bruce B. Dayton M. H. Strothman, Jr. Helena...................59601 William A. Cordingley Howard L. Knous Kansas City.............. .64198 Robert W. Wagstaff George H. Clay Willard D. Hosford, Jr. John T. Boysen Denver.................. .80217 Cris Dobbins John W. Snider Oklahoma City,, ,, .73125 C. W. Flint, Jr. Howard W. Pritz Omaha................. .68102 Henry Y. Kleinkauf George C. Rankin Dallas....................... .75222 Chas. F. Jones Philip E. Coldwell Philip G. Hoffman T. W. Plant El Paso................. .79999 Joseph M. Ray Fredric W. Reed Houston............... .77001 Geo. T. Morse, Jr. J. Lee Cook San Antonio......... .78295 W. A. Belcher Carl H. Moore San Francisco........... .94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles.......... 90051 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 103 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 and Securities Markets. 1966. 182 pp. $.65. or more of same issue sent to one address, $5.00 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 104 FEDERAL RESERVE BULLETIN □ AUGUST 1971 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 DEMIC SEMINAR ON DISCOUNTING. 1968. INTEREST RATE EXPECTATIONS: TESTS ON YIELD 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 OPEN MARKET POLICIES AND OPERATING PRO­ Studies and papers on economic and financial sub­ CEDURES—STAFF STUDIES (papers by Axilrod, jects that are of general interest in the field of Davis, Andersen, Kareken et al., Pierce, Fried­ economic research. man, and Poole). 1971. 218 pp. $2.00 a copy; Summaries only printed in the Bulletin. 10 or more sent to one address, $1.75 each. (Limited supply of mimeographed copies of full REAPPRAISAL OF THE FEDERAL RESERVE DIS­ text available upon request for single copies.) COUNT MECHANISM, vol. 1 (papers by Steer­ MEASURES OF INDUSTRIAL PRODUCTION AND ing Committee, Shull, Anderson, and Garvy). FINAL DEMAND, by Clayton Gehman and Cor­ 1971. 276 pp. $3.00 a copy; 10 or more sent nelia Motheral. Jan. 1967. 57 pp. to one address, $2.50 each. 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. 1971. 82 pp. RESERVE ADJUSTMENTS OF THE EIGHT MAJOR 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

FEDERAL RESERVE BOARD PUBLICATIONS A 105 ESTIMATION OF THE INVESTMENT AND PRICE THE ROLE OF FINANCIAL INTERMEDIARIES IN EQUATIONS OF A MACROECONOMETRIC MODEL, U.S. CAPITAL MARKETS, Staff Economic Study by Robert J. Shiller. June 1971. 65 pp. by Daniel H. Brill with Ann P. Ulrey. Jan. 1967. 14 pp. ADJUSTMENT AND DISEQUILIBRIUM COSTS AND THE ESTIMATED BRAINARD—TOBIN MODEL, REVISED SERIES ON COMMERCIAL AND INDUS­ by Joseph Bisignano. July 1971. 108 pp. TRIAL LOANS BY INDUSTRY. Feb. 1967. 2 pp. A TEST OF THE “EXPECTATIONS HYPOTHESIS” AUTO LOAN CHARACTERISTICS AT MAJOR SALES USING DIRECTLY OBSERVED WAGE AND PRICE FINANCE COMPANIES. Feb. 1967. 5 pp. EXPECTATIONS, by Stephen J. Turnovsky and SURVEY OF FINANCE COMPANIES, MID-1965. Apr. Michael L. Wachter. Aug. 1971. 25 pp. 1967. 26 pp. MORTGAGE REPAYMENTS AS A SOURCE OF LOANABLE FUNDS, by Robert Moore Fisher. EVIDENCE ON CONCENTRATION IN BANKING Aug. 1971. 43 pp. MARKETS AND INTEREST RATES, Staff Eco­ nomic Study by Almarin Phillips. June 1967. Printed in full in the Bulletin. 11 pp. (Reprints available as shown in following list.) NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. REPRINTS REVISED INDEXES OF MANUFACTURING CAPACITY AND CAPACITY UTILIZATION. July 1967. 3 pp. ADJUSTMENT FOR SEASONAL VARIATION. June 1941. 11 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT ON MEMBER BANKS. July 1967. 6 pp. SEASONAL FACTORS AFFECTING BANK RESERVES. Feb. 1958. 12 pp. INTEREST COST EFFECTS OF COMMERCIAL BANK LIQUIDITY AND PUBLIC POLICY, Staff Paper by UNDERWRITING OF MUNICIPAL REVENUE Stephen H. Axilrod. Oct. 1961. 17 pp. BONDS. Aug. 1967. 16 pp. SEASONALLY ADJUSTED SERIES FOR BANK THE FEDERAL RESERVE-MIT ECONOMETRIC CREDIT. July 1962. 6 pp. MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. MEASURES OF MEMBER BANK RESERVES. July 1968. 7 pp. 1963. 14 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN CHANGES IN BANKING STRUCTURE, 1953-62. 1960-67. Apr. 1968. 23 pp. Sept. 1963. 8 pp. MONETARY RESTRAINT AND BORROWING AND REVISION OF BANK DEBITS AND DEPOSIT TURN­ CAPITAL SPENDING BY LARGE STATE AND OVER SERIES. Mar. 1965. 4 pp. LOCAL GOVERNMENTS IN 1966. July 1968. 30 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff Economic Study by Lyle E. Gramley and REVISED SERIES ON BANK CREDIT. Aug. 1968. Samuel B. Chase, Jr. Oct. 1965. 25 pp. 4 pp. RESEARCH ON BANKING STRUCTURE AND PER­ FEDERAL FISCAL POLICY IN THE 1960's. Sept. FORMANCE, Staff Economic Study by Tynan 1968. 18 pp. Smith. Apr. 1966. 11 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 FEDERAL RESERVE BULLETIN □ AUGUST 1971 MONETARY RESTRAINT, BORROWING, AND CAP­ BANK FINANCING OF MOBILE HOMES. Mar. 1971. ITAL SPENDING BY SMALL LOCAL GOVERN­ 4 pp. MENTS AND STATE COLLEGES IN 1966. Dec. TREASURY AND FEDERAL RESERVE FOREIGN EX­ 1968. 30 pp. CHANGE OPERATIONS. Mar. 1971. 19 pp. REVISION OF CONSUMER CREDIT STATISTICS. Dec. 1968. 21 pp. RESPONSE OF STATE AND LOCAL GOVERNMENTS TO VARYING CREDIT CONDITIONS. Mar. 1971. HOUSING PRODUCTION AND FINANCE. Mar. 1969. 24 pp. 7 pp. CHANGES IN BANK LENDING PRACTICES, 1970. OUR PROBLEM OF INFLATION. June 1969. 15 pp. Apr. 1971.5 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco­ nomic Study by Frank de Leeuw and Edward U.S. BALANCE OF PAYMENTS AND INVESTMENT Gramlich. June 1969. 20 pp. POSITION. Apr., 1971. 14 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL INTEREST RATES, CREDIT FLOWS, AND MON­ BANKS. Aug. 1969. 5 pp. ETARY AGGREGATES SINCE 1964. June 1971. 16 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. TWO KEY ISSUES OF MONETARY POLICY. June RECENT CHANGES IN STRUCTURE OF COMMER­ 1971.4 pp. CIAL BANKING. Mar. 1970. 16 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June SDR's IN FEDERAL RESERVE OPERATIONS AND 1971. 12 pp. STATISTICS. May 1970. 4 pp. BANK RATES ON BUSINESS LOANS—REVISED INFLATION IN WESTERN EUROPE AND JAPAN. SERIES. June 1971. 10 pp. Oct. 1970. 13 pp. REVISION OF THE MONEY STOCK. Dec. 1970. INDUSTRIAL PRODUCTION—REVISED AND NEW 23 pp. MEASURES. July 1971. 26 pp. MEASURES OF SECURITY CREDIT. Dec. 1970. CHANGES IN TIME AND SAVINGS DEPOSITS, 11 pp. JANUARY—APRIL 1971, July 1971. 13 pp. BALANCE OF PAYMENTS PROGRAM: REVISED GUIDELINES FOR BANKS AND NONBANK FINAN­ BANKING AND MONETARY STATISTICS, 1970. CIAL INSTITUTIONS. Jan. 1971. 12 pp. Selected series of banking and monetary statistics for 1970 only. Feb., Mar., and July 1971. 19 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. FINANCIAL DEVELOPMENTS IN THE SECOND 1971.26 pp. QUARTER OF 1971. August 1971. 10 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 107 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers’, 14, 33, 35 Demand deposits—Continued Agricultural loans of commercial banks, 24, 26 Ownership by individuals, partnerships, and Arbitrage, 93 corporations, 32 Assets and liabilities (See also Foreigners): Subject to reserve requirements, 18 Banks, by classes, 20, 24, 25, 26, 39 Turnover, 15 Banks and the monetary system, 19 Deposits (See also specific types of deposits): Corporate, current, 51 Accumulated at commercial banks for payment of Federal Reserve Banks, 12 personal loans, 32 Automobiles: Adjusted, and currency, 19 Consumer instalment credit, 56, 57, 58 Banks, by classes, 11, 20, 25, 29, 39 Production index, 60, 61 Euro-dollars, 88 Federal Reserve Banks, 12, 88 Bank credit proxy, 18 Postal savings, 19, 25 Bank holding companies, banking offices and deposits Subject to reserve requirements, 18 of group banks, Dec. 31, 1970, 98 Discount rates (See Interest rates) Bankers’ balances, 25, 28 Discounts and advances by Reserve Banks, 4, 12, 13, (See also Foreigners, claims on, and liabilities to) 15 Banking offices: Dividends, corporate, 50, 51 Changes in number, 96 Dollar assets, foreign, 77, 83 Par and nonpar offices, number, 97 Banks and the monetary system, 19 Earnings and hours, manufacturing industries, 67 Banks for cooperatives, 40 Employment, 64, 66, 67 Bonds (See also U.S. Govt, securities): Euro-dollar deposits in foreign branches of New issues, 47, 48, 49 U.S. banks, 88 Yields and prices, 36, 37 Branch banks, liabilities of U.S. banks to their foreign Farm mortgage loans, 52, 53 branches, 30, 88 Federal finance: Brokerage balances, 87 Cash transactions, 42 Business expenditures on new plant and equipment, 51 Receipts and expenditures, 43 Business indexes, 64 Treasury operating balance, 42 Business loans (See Commercial and industrial loans) Federal funds, 8, 24, 26, 30, 35 Federal home loan banks, 40, 41, 53 Capacity utilization, 64 Federal Housing Administration, 52, 53, 54, 55 Capital accounts: Federal intermediate credit banks, 40, 41 Banks, by classes, 20, 25, 30 Federal land banks, 40, 41 Federal Reserve Banks, 12 Federal National Mortgage Assn., 40, 41, 55 Central banks, 92, 94 Federal Reserve Banks: Certificates of deposit, 30 Condition statement, 12 Coins, circulation, 16 U.S. Govt, securities held, 4, 12, 15, 44, 45 Commercial and industrial loans: Federal Reserve credit, 4, 6, 12, 15 Commercial banks, 24, 33 Federal Reserve notes, 12, 16 Weekly reporting banks, 26, 31 Federally sponsored credit agencies, 40, 41 Commercial banks: Finance companies: Assets and liabilities, 20, 24, 25, 26 Loans, 26, 56, 57, 59 Banking offices, changes in number, 96 Paper, 33, 35 Consumer loans held, by type, 57 Financial institutions, loans to, 24, 26 Deposits at, for payment of personal loans, 32 Float, 4 Loans sold outright, 33 Flow of funds, 72 Number, by classes, 20 Foreign: Real estate mortgages held, by type, 52 Currency operations, 12, 14, 77, 83 Commercial paper, 33, 35 Deposits in U.S. banks, 5, 12, 19, 25, 29, 88 Condition statements (See Assets and liabilities) Exchange rates, 91 Construction, 64, 65 Trade, 75 Consumer credit: Foreigners: Instalment credit, 56, 57, 58, 59 Claims on, 84, 85, 88, 89, 90 Noninstalment credit, by holder, 57 Liabilities to, 30, 78, 79, 81, 82, 83, 88, 89, 90 Consumer price indexes, 64, 68 Consumption expenditures, 70, 71 Gold: Corporations: Certificates, 12, 13, 16 Sales, profits, taxes, and dividends, 50, 51 Earmarked, 88 Security issues, 48, 49 Net purchases by U.S., 76 Security yields and prices, 36, 37 Production, 95 Cost of living (See Consumer price indexes) Reserves of central banks and govts., 94 Currency and coin, 5, 10, 25 Stock, 4, 19, 77 Currency in circulation, 5, 16, 17 Government National Mortgage Association, 55 Customer credit, stock market, 38 Gross national product, 70, 71 Debits to deposit accounts, 15 Hours and earnings, manufacturing industries, 67 Debt (See specific types of debt or securities) Housing permits, 64 Demand deposits: Housing starts, 65 Adjusted, banks and the monetary system, 19 Adjusted, commercial banks, 15, 18, 25 Income, national and personal, 70, 71 Banks, by classes, 11, 20, 25, 29, 39 Industrial production index, 60-63, 64 )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 89-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 89-A hguorht 4-A segap o t era secnerefeR( A 108 FEDERAL RESERVE BULLETIN □ AUGUST 1971 Instalment loans, 56, 57, 58, 59 Real estate loans: Insurance companies, 39, 44, 45, 53 Banks, by classes, 24, 27, 39, 52 Insured commercial banks, 22, 24, 32, 96 Delinquency rates on home mortgages, 54 Interbank deposits, 11, 20, 25 Mortgage yields, 55 Interest rates: Type of holder and property mortgaged, 52, 53, Business loans by banks, 34 54, 55 Federal Reserve Banks, 9 Reserve position, basic, member banks, 8 Foreign countries, 92, 93 Reserve requirements, member banks, 10 Money market rates, 35 Reserves: Mortgage yields, 55 Central banks and govts., 94 Prime rate, commercial banks, 34 Commercial banks, 25, 28, 30 Time and savings deposits, maximum rates, 11 Federal Reserve Banks, 12 Yields, bond and stock, 36 Member banks, 5, 6, 11, 18, 25 International capital transactions of the U.S., 78-90 U.S. reserve assets, 77 International institutions, 76, 77, 92, 94 Residential mortgage loans, 37, 52, 53, 54 Inventories, 70 Retail credit, 56 Investment companies, issues and assets, 49 Retail sales, 64 Investments (See also specific types of investments): Banks, by classes, 20, 24, 27, 28, 39 Saving: Commercial banks, 18 Flow of funds series, 72 Federal Reserve Banks, 12, 15 National income series, 71 Life insurance companies, 39 Savings and loan assns., 40, 45, 53 Savings and loan assns., 40 Savings deposits (See Time deposits) Savings institutions, principal assets, 39, 40 Securities (See also U.S. Govt, securities): Labor force, 66 Federally sponsored agencies, 40, 41 Loans (See also specific types of loans): International transactions, 86, 87 Banks, by classes, 20, 24, 26, 27, 39 New issues, 47, 48, 49 Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34 Silver coin and silver certificates, 16 Federal Reserve Banks, 4, 6, 12, 15 Special Drawing Rights, 4, 12, 13, 19, 74, 77 Insurance companies, 39, 53 State and local govts.: Insured or guaranteed by U.S., 52, 53, 54, 55 Deposits, 25, 29 Savings and loan assns., 40, 53 Holdings of U.S. Govt, securities, 44, 45 New security issues, 47, 48 Ownership of securities of, 24, 28, 39 Manufacturers: Capacity utilization, 64 Yields and prices of securities, 36, 37 Production index, 61, 64 State member banks, 22, 32, 96 Stock market credit, 38 Margin requirements, 10 Stocks: Member banks: Assets and liabilities, by classes, 20, 24 New issues, 48, 49 Yields and prices, 36, 37 Banking offices, changes in number, 96 Borrowings at Reserve Banks, 6, 12 Deposits, by classes, 11 Tax receipts, Federal, 43 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, 42 Reserves and related items, 4, 18 Treasury operating balance, 42 Mining, production index, 61, 64 Mobile home shipments, 65 Money rates (See Interest rates) Unemployment, 66 Money stock and related data, 17, 19 U.S. balance of payments, 74 Mortgages (See Real estate loans and Residential U.S. Govt, balances: mortgage loans) Commercial bank holdings, 25, 29 Mutual funds (See Investment companies) Consolidated condition statement, 19 Mutual savings banks, 19, 29, 39, 44, 45, 52, 96 Member bank holdings, 18 Treasury deposits at Reserve Banks, 5, 12, 42 U.S. Govt, securities: National banks, 22, 32, 96 Bank holdings, 19, 20, 24, 27, 39, 44, 45 National income, 70, 71 Dealer transactions, positions, and financing, 46 National security expenditures, 43, 70 Federal Reserve Bank holdings, 4, 12, 15, 44, 45 Nonmember banks, 22, 24, 25, 32, 96 Foreign and international holdings, 12, 83, 86, 88 International transactions, 83, 86 New issues, gross proceeds, 48 Open market transactions, 14 Open market transactions, 14 Outstanding, by type of security, 44, 45, 47 Ownership of, 44, 45 Par and nonpar banking offices, number, 97 Yields and prices, 36, 37 Payrolls, manufacturing index, 64 United States notes, 16 Personal income, 71 Utilities, production index, 61, 63, 64 Postal savings, 19, 25 Prices: Veterans Administration, 52, 53, 54, 55 Consumer and wholesale commodity, 64, 68 Security, 37 Weekly reporting banks, 26 Prime rate, commercial banks, 34 Production, 60-63, 64 Profits, corporate, 50, 51 Yields (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis