Federal Reserve Bulletin, 1971-10
FEDERAL RESERVE BULLETIN « • »* OCTOBER 1971 BOARD OF GOVERNORS • THE FEDERAL RESERVE SYSTEM • WASHINGTON, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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FEDERAL RESERVE BULLETIN NUMBER 10 • VOLUME 57 • OCTOBER 1971 CONTENTS 761 Credit Supply in the First Half of 1971 779 Revised Measures of Manufacturing Capacity Utilization 783 Treasury and Federal Reserve Foreign Exchange Operations 815 Statements to Congress 820 Record of Policy Actions of the Federal Open Market Committee 828 Law Department 866 Announcements 868 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 96 Board of Governors and Staff A 98 Open Market Committee and Staff; Federal Advisory Council A 99 Federal Reserve Banks and Branches A 100 Federal Reserve Board Publications A 104 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL Charles Molony J. Charles Partee COMMITTEE Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff editorial 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
Credit Supply in the First Half of 1971 NET FLOWS OF CREDIT to nonfinancial borrowers during the first half of this year were at much the highest rate for any 6-month period covered by the available record, which begins in 1952. Both in dollar terms and relative to GNP, the total flow was larger than in any single quarter in the 1952-70 period and was well above the 1960-70 average. Equity issues by corporations were also very large and on a net basis above any previous halfyear from 1952. Net borrowings in credit markets in the first half of 1971 were at a seasonally adjusted annual rate of $131 billion, and with another $13 billion of net new equity funds for corporations the net total of funds raised was at a $144 billion rate. This record volume of flows in credit and equity markets arose from an unusual combination of heavy Federal borrowing, credit demands by State and local governments that exceeded the current requirements of these units, and a volume of private borrowing that was high relative to capital outlays and saving although not in relation to GNP. As Table 1 indicates, only for State and local governments was credit market financing above earlier highs, relative to GNP, for a 6-month period. This component of the credit flow appears to have been about $8 billion, at annual rates, above the amounts indicated by historical relationships to operating needs and was a major source of the large size of the first-half total. Nevertheless, the volume of private borrowing, together with the Federal need for funds, would have kept the total above earlier peaks even if borrowing by State and local governments had been at a lower rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
762 FEDERAL RESERVE BULLETIN • OCTOBER 1971 International capital flows have been an influence in raising credit demands in U.S. markets this year, with much of the effect in borrowing by domestic sectors rather than in direct lending to foreigners. A large part of the heavy net outflow of private capital this year was from domestic nonbank sectors and included reductions of foreign liabilities as well as increases in asset holdings abroad. These nonbank outflows were probably financed in part by borrowing in the domestic market that i3 included mainly in the business total in Table 1. TABLE 1 NET FUNDS RAISED BY NONFINANCIAL SECTORS IN CREDIT AND EQUITY MARKETS Per cent of GNP Hl/71 Item (billions of Preceding dollars) i Hl/71 high (half-year) Total 144.1 13.93 12.10 (H2/67) Corporate equities 13.1 1.26 ..8800 ((HH22//6699)) Credit market instruments.. 131.0 12.67 11.65 (H2/68) U.S. Govt 23.1 2.21 22..9900 ((HH22//5533)) State and local govts... 21.2 2.03 1.59 (H2/54) Households 31.4 3.03 5.18 (Hl/55) Business 49.7 4.82 5.26 (Hl/69) Foreign 5.7 .55 .80 (Hl/64) 1 Seasonally adjusted annual rate. The supply of funds to credit markets to meet these large demands was not only large but unusual in its structure. Perhaps the central feature of financial developments in the first half of the year was the almost 20 per cent annual rate of growth in time and savings accounts at banks and savings institutions. The total flow into such accounts was at a $90 bilUon annual rate, or 70 per cent of the rate of total borrowing. This was far above the 50 per cent relationship in the 1961-65 period, when these deposits were growing at 12 per cent per year, and twice the ratio for 1966-70. The first-half inflow was a continuation of a shift of funds into institutions by private nonfinancial investors that had begun in mid-1970 after interest rate ceilings had been lifted on large negotiable certificates of deposit of shorter maturities at banks. Growth in the first half of this year was at a more rapid rate than in the second half of 1970, however, and was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 763 relatively more in passbook deposits and at savings institutions and less in large CD's. A sizable part of the second-half 1970 deposit flow had been a conversion of money market funds from bank-related commercial paper into CD's issued by the same group of institutions and did not increase the flow of bank-related credit. During the first half of this year such conversions were no longer important, and with the accelerated flow into smaller deposits, the relation to bank credit flows was part of a broader set of adjustments of both assets and liabilities of banks. Another striking feature of credit supply in the first half of this year—to some extent related to the deposit flows—^was the heavy volume of U.S. Government securities purchased by foreign central banks. This foreign official supply was a reflection of the large private capital outflows from the United States. In the first half of the year—even before external flows reached their peak in the August crisis—net private capital outflows together with net U.S. Government lending to foreign borrowers were at an annual rate of over $20 bilhon. Much of the private outflow was repayment of foreign liabilities, by both banks and nonbanks, rather than lending to foreigners. Bank repayments of foreign debt were one of the offsets during the first half of the year to the large deposit inflows and can be viewed as financed by the deposit flows. Nonbank outflows were financed in a variety of forms, including to some extent, credit market borrowings in Table 1. The $20 billion estimate of capital outflows includes a major part of the extraordinarily large unidentified transactions in the balance of payments statement for the first half of the year. These unidentified outflows may also be partly reflected in domestic borrowing in the domestic market. While financial flows were both large and in unusual forms during the first half of the year, their net effect for the domestic economy was to restore some normal patterns in asset holdings after departures from earlier trends during the credit tightness of 1969-70. By the end of 1969 liquid asset holdings of private nonfinancial sectors in the U.S. had become somewhat low in total and heavily invested in direct market instruments. The volume of deposit flows into banks and savings institutions after mid-1970 has been roughly sufficient to restore earlier trends in deposit holdings, to bring total liquid asset holdings to earlier levels relative to GNP, and to keep pace with growth in GNP. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
764 FEDERAL RESERVE BULLETIN • OCTOBER 1971 SUMMARY OF This article reviews for the first half of 1971 the roles of deposit CREDIT SUPPLY flows to institutions, debt and asset management by intermediaries, and balance of payments developments in generating the record flow of credit to borrowers and the asset position of private investors. Because the first half of the year represented to a large extent a period of readjustment by both borrowers and lenders away from extreme financial positions that had been reached during the credit tightness of 1969, comparisons in the following discussion are primarily with 1969, in order to indicate the extent of change in position. The year 1970 was in many ways transitional between 1969 and 1971, with interest rates stable at very high levels in the first half and falling in the second. The readjustment process became more extensive early this year and presents a broader contrast with 1969 conditions. Table 2 gives a stratified picture of the connections between total funds raised by nonfinancial borrowers, on the one hand, and the combination of transactions by foreign, financial, and private nonfinancial investors that supplied that credit. The body of the table refers to debt instruments, fixed-value deposits and currency, and nondeposit sources of intermediary credit. Purchases of corporate equities are shown separately at the bottom of the table. Equity markets affect credit demand and supply, particularly when new offerings are as large as they have been this year, but they are shown in the table as external to flows of borrowed funds. FOREIGN SUPPLY Foreign direct lending in U.S. credit markets—net purchases of OF FUNDS Government securities and private credit market instruments— was large enough in the first half of this year to produce a marked contrast between total funds raised (line 7 of Table 2) and private domestic lending in markets (line 11). With total credit flows at a rate $45 billion higher than in 1969, the rate of private NOTES TO TABLE 2 n.a. Not applicable, or not available. 7 Demand and time deposits, amounts owed to foreign branches, • Less than $50 million. and balances at U.S. agencies of foreign banks. 1 Seasonally adjusted annual rate. 8 Mainly insurance and pension reserves. Includes internal funds of 2 Households, nonfinancial business, State and local governments, intermediaries. Treasury cash balances, member bank borrowing, and nonprofit organizations, and personal trust funds. Excludes State and miscellaneous liabilities, net of uses of funds other than credit inlocal government employee retirement funds, which are in lines 12 struments. and 20. 9 From last quarter of preceding period to last quarter of this 3 U.S. Govt., sponsored credit agencies, and Federal Reserve Sys- period, at annual rates. In fifth column, amount in GNP, seasonally tem. Federal Reserve component consists of U.S. Govt, securities adjusted annual rate, for 1970 Q4. and bankers' acceptances. See Table 5. 10 Amounts outstanding are market values of holdings for week of ^ Net security issues by federally sponsored credit agencies plus net Dec. 31. Includes small amounts for financial institutions but exissues of GNMA-guaranteed mortgage-backed securities. cludes investment company shares. 5 Commercial banks, savings institutions, insurance and pension 11 Based in New York Stock Exchange index, which rose 9.4 per funds, finance companies, investment companies, security brokers and cent during the first half. dealers, and agencies of foreign banks. Types of credit supplied are 12 Negative in line 20. Net of equity issues by open-end investment shown in Table 7. companies. 6 Bond issues, commercial paper, bank loans, and home loan bank credit. Some of this credit is supplied by other intermediaries and is SOURCE.—Page A72 ff. of this BULLETIN and June 1971 BULLETIN, p. included on line 12. A71.2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 765 TABLE 2 STRUCTURE OF CREDIT SUPPLY, 1969-lst HALF, 1971 In billions of dollars unless otherwise noted Net flow of funds Amounts out- Annual rate Line Item standing, of growth, Hl/71 Dec. 31, Hl/71 1969 1970 1 Hl/71 less 1970 (per cent) 1969 1. Total funds raised by nonfinancial sectors 90.4 97.5 144.1 53.7 n.a. n.a. 2. Corporate equity issues, net 4.8 6.8 13.1 8.3 n.a. n.a. 3. Credit instruments, by issuing sector: Total 85.7 90.7 131.0 45.3 1,449.9 9.0 4. U.S. Government -3.6 12.8 23.1 26.7 301.4 7.7 5. Foreign 3.7 2.6 5.7 2.0 50.8 11.2 6. Private domestic sectors 2 85.6 75.3 102.2 16.6 1,097.7 9.3 7. Total funds advanced in credit markets (line 3)... 85.7 90.7 131.0 45.3 1,449.9 8. Less: Foreign net purchases of U.S. credit instruments -.3 10.3 28.7 29.0 25.0 114.8 9. Credit from public agencies (Table 5) .. 15.8 18.3 10.6 -5.2 164.0 6.5 10. Plus: Agency borrowing not in line 1 ^ 8.8 8.7 -.6 -9.4 38.9 -1.5 11. Equals: Private domestic supply in credit markets Also (lines 12-18+21). Also (sum of lines 19 through 23) (Table 6) 79.0 71.1 91.1 12.1 1,299.7 7.0 Intermediation: 12. Funds supplied directly by private domestic financial institutions in credit markets ^ 53.7 64.7 103.2 49.5 1,048.6 9.8 13. Commercial banks 17.7 28.1 50.5 32.8 435.2 11.6 14. Savings institutions 14.3 16.3 44.5 30.2 251.2 17.7 15. Insurance and pension funds 12.0 15.2 12.4 .4 287.8 4.3 16. Other finance 9.7 5.1 -4.2 -13.9 74.4 -5.6 Sources of funds supplied 53.7 64.7 103.2 49.5 1,048.6 9.8 17. Private domestic deposits (18+19) 1.8 57.6 104.5 102.7 609.8 17.1 18. Credit market borrowing (Table 7) « 16.7 2.0 * -16.7 74.8 .1 19. Foreign funds at banks 9.4 -7.9 -10.2 -19.6 23.9 -42.7 20. Other, net 8 25.8 13.0 8.9 -16.9 340.1 2.6 Private domestic nonfinancial sectors: ^ 21. Direct purchases of credit market instruments (lines 11-12+18) (Table 7) 42.0 8.3 -12.1 -54.1 325.9 -3.7 22. Time and savings accounts -2.4 54.9 90.2 92.6 454.3 19.8 23. Demand deposits 4.3 2.6 14.3 10.0 155.5 9.2 24. Currency 2.8 hi U 1.9 50.1 ^ 25. Total of market instruments, deposits, and currency (lines 21+22+23+24, or 11-19 - 20+24) 46.7 69.4 97.2 50.5 985.8 9.9 Memorandum items: 26. Change in GNP ^ 57.8 40.4 109.2 51.4 988.4 11.0 Total foreign funds (8+19) 9.1 2.4 18.5 9.4 48.9 37.8 27. Corporate equities market Net new issues^® 4.7 6.8 12.9 8.2 864.0 11 18.8 28. Net purchases by— Financial institutions ^ 2 7.0 8.8 20.7 13.7 98.9 n.a. 29. Foreign 1.6 .7 .2 -1.4 18.1 n.a. 30. Private domestic nonfinancial -3.8 -2.6 -8.0 -4.2 747.0 n.a. 31. Private domestic direct purchases as per cent 32. of total credit advanced {lines llj?) 92.1 78.4 60.5 89.6 33. Private intermediation as per cent of private domestic credit supply {lines 12/11) 6688..00 9911..00 111133..33 8800..77 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
766 FEDERAL RESERVE BULLETIN • OCTOBER 1971 domestic lending was only $12 billion above 1969. Most of the $33 billion difference was in the sharp increase in foreign net purchases of U.S. Government securities, included in line 8. These flows were slightly negative in 1969 and rose to a $27 billion annual rate in the first half of 1971. The increase from 1969 was larger than the $27 billion rise in rate of total Federal borrowing and left domestic investors with a larger net rate of liquidation than in 1969 (Table 3). TABLE 3 U.S. GOVERNMENT SECURITIES In billions of dollars 1960-68 Item average 1969 1970 1 Hl/71 Total net issues 2... 6.0 -3.6 12.8 3 23.1 Foreign purchases^. .3 -1.8 9.1 27.4 Domestic purchases 5.7 -1.8 3.7 -4.3 1 Seasonally adjusted annual rate. 2 Line 4 of Table 2. 3 Includes Euro-dollar borrowing by U.S. Treasury and Export- Import Bank. 4 Private and official. For details, see Table 4. The foreign purchases of Government securities were mainly by central banks and other official reserve holders that were acquiring dollar balances as a result of private capital flows out of the United States. About one-fifth of the purchases were Eurodollar securities issued by the Treasury and the Export-Import Bank during the half-year to foreign branches of U.S. banks, however. These Euro-dollar issues, as a private foreign source of credit to the Government, served to reduce somewhat the net total of private capital outflows and thus to restrain the growth of foreign official dollar holdings. Apart from the Euro-dollar issues, there was little direct flow into U.S. credit instruments from private foreign sources. As Table 4 shows, the combination of private net outflows, U.S. Government lending abroad, and unrecorded transactions was at a $22 billion annual rate during the first half of the year— or at a $28 billion rate apart from the Government's Euro-dollar borrowing from U.S. bank branches abroad. These amounts were nearly equal, respectively, to foreign official buying of Treasury securities and to the total foreign flow into Government issues that is in Table 3. About $13 billion of the private outflow was repayment by U.S. banks of their private foreign liabilities, in contrast to an $8 billion inflow from such sources in 1969. Most Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 767 of the flow in both periods was in borrowings from overseas branches, but the amounts also include net changes in foreign deposits directly at U.S. banks. Thus from 1969 to the first half of 1971 this $21 billion reversal in bank flows was a large part of the total change in capital flows and unrecorded transactions on line B of Table 4. Private nonbank outflows were also large, TABLE 4 U.S. BALANCE OF PAYMENTS In billions of dollars Change: Item 1969 1970 1 Hl/71 1969 to Hl/71 A. Balance on current account^ -.9 .4 -1.0 -.1 B. Private capital flows, U.S. Govt, net lending, and errors and omissions ^ . 3.6 -11.1 -22.2 -25.8 U.S. Govt, net lending^ -1.9 -2.0 -2.6 -0.7 Long-term private capital flows -.1 -1.5 -5.3 -5.2 Nonliquid short-term private capital flows -.6 -.5 -1.7 -1.1 Errors and omissions -2.6 -1.1 -6.7 -4.1 Foreign funds at U.S. commercial banks5 7.6 -6.2 -12.8 -20.2 Foreign private purchases of U.S. Govt, securities6 .1 -.2 6.0 4-5.9 Other liquid private capital, net 1.1 .5 .9 -.4 C. Over-all balance ^ (official reservetransactions basis) = A+B 2.7 -10.7 -23.2 -25.9 Financed by— Foreign official purchases of U.S. Govt. securities -1.9 9.3 21.4 +23.3 Decrease in U.S. official reserve assets7. -1.2 3.3 3.4 +4.6 Other official reserve transactions .4 -1.9 -1.6 -2.0 1 Seasonally adjusted annual rate. 2 Balance on goods and services, remittances and pensions, and U.S. Government grants (excluding military). 3 Minus signs indicate outflows. * Includes capital subscriptions; net of increase in Govt, nonliquid liabilities to others than foreign official reserve holders. 5 Bank liabilities to foreign official reserve holders are included in the last line of the table. 6 Includes in 1971 Euro-dollar issues by U.S. Treasury and Export-Import Bank. 7 Before counting allocation of Special Drawing Rights. however. On the basis of recorded transactions and before deducting the Government's Euro-dollar borrowing, they were at a $6 billion annual rate, compared with $0.4 billion in 1969, and included increases in U.S. direct investment flows, a shift in short-term liabilities abroad from borrowing in both 1969 and 1970 to debt repayment this year, and a shift from reducing foreign liquid claims to building them up. If a large part of the errors and omissions item is assumed to be unrecorded U.S. capital outflows, the total nonbank private flow this year may have been as much as a $15 billion rate. Bank repayments of foreign borrowings were occasioned Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
768 FEDERAL RESERVE BULLETIN • OCTOBER 1971 mainly by the immense deposit inflows from domestic sources that began in the third quarter of 1970. These domestic deposits came to banks at interest costs well below the Euro-dollar rates prevailing during the period and made foreign borrowing a costly source of funds. Nonbank capital outflows also reflected rate spreads between U.S. and European markets, as well as the exchange rate uncertainties this year. The dollar balances transferred to foreign monetary authorities in settlement of these capitol flows were invested largely in Treasury securities to produce the large direct flow to Government financing from foreign sources. To the extent that domestic nonbank outflows—either lending or reduction of liabilities abroad—^were financed by domestic borrowing in U.S. credit markets, they contributed to the high rate of domestic private borrowing this year. The extent of such borrowing cannot be measured, but by increasing the amount of foreign direct buying of U.S. Government securities, it had the effect of substituting private credit demand in the U.S. market for Government borrowing from domestic sources. PUBLIC AGENCY LENDING Government-related financial intermediation has become a major aspect of credit supply in recent years through the lending activities of federally sponsored credit agencies such as the Federal National Mortgage Association, the Federal home loan banks, and the Federal intermediate credit banks. During 1969 and 1970 agency holdings of housing mortgages and loans to savings and loan associations increased by $16 billion, almost doubling their 1968 year-end holdings of $18 billion. These lending activities and the farm credit programs, included in line 9 of Table 2, were financed by a $17 billion growth in agency securities outstanding. What the volume and form of credit flows would TABLE 5 PUBLIC AGENCY CREDIT FLOWS, BY FORM OF CREDIT EXTENDED In billions of dollars Hl/71 Item 1969 1970 1 Hl/71 less 1969 U.S. Govt, securities 2.7 6.6 6.7 4.0 Residential mortgages 4.6 5.7 3.9 -.7 Federal home loan bank advances 4.0 1.3 -6.0 -10.0 Other 4.5 4.3 6.0 1.5 Total (line 9 of Table 2) 15.8 18.3 10.6 -5.2 1 Seasonally adjusted annual rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 769 have been without the growth in agency lending cannot be guessed, but the figures for private lending in 1969 and 1970 in Table 2 include sizable purchases of agency securities, from line 10, in place of mortgages and other credit forms that are in the totals of funds raised in line 3 of the table. In the first half of this year, residential mortgage lending through these agencies was somewhat reduced, and there were sharp repayments of borrowings from home loan banks. Funds supplied by the Federal Reserve, also in line 9, were mainly through net purchases of U.S. Government securities—$4 billion in 1969 and $5 billion in 1970—as an asset base for growth in member bank reserves and currency in circulation. With absorption and conversion of credit flows by foreign and public sectors, direct supply of credit by private domestic lenders (line 11) was not only lower than total borrowing in the periods shown but also sharply changed in structure. Thus, in 1969, in the presence of large credit programs of Federal agencies and the security issues to finance those programs, private lenders— intermediaries and nonfinancial sectors together—were net buyers of U.S. Government and agency securities at a time when the Government was retiring debt, and private flows into loans and mortgages were well below total borrowing in those forms (Table 6). In the first half of 1971, when foreign buying of Government securities was large, there was an opposite relationship, and private domestic sources put funds into loans and TABLE 6 TOTAL BORROWING AND PRIVATE DOMESTIC CREDIT SUPPLY In billions of dollars 1 ^ Column 1 3 4 5 6 1969 3 Hl/71 Item Total Private (2) Total Private (5) borrow- domestic less borrow- domestic less ing 1 credit (1) iinngg!! credit ((44)) supply 2 supply 2 Total net flow 85.7 79.0 -6.7 131.0 91.1 -39.9 U.S. Govt, securities -3.6 4 4.6 8.2 23.1 ^-11.6 -34.7 Other securities , 21.2 20.7 -.5 45.0 44.8 -.2 Loans and mortgages 68.1 53.7 -14.4 62.9 57.9 -5.0 1 Line 7 of Table 2. 2 Direct lending in markets by intermediaries and nonfinancial investors (line 11 of Table 2). 3 Seasonally adjusted annual rate. 4 Includes issues of Federal agencies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
770 FEDERAL RESERVE BULLETIN • OCTOBER 1971 private securities while liquidating Government securities on a net basis. The 1969 shift in form of credit in private markets stemmed from public policy aims of supporting housing mortgages. Agency securities from the housing program absorbed a sizable share of the funds that were drawn out of deposits and into market instruments for the higher returns available in the market. The reverse shift this year, toward an increased loan component in private supply, was consistent with credit conditions that included a large volume of deposit inflows to institutions specializing in loan and mortgage credit rather than purchases of securities in the open market. PRIVATE DOMESTIC Over the last 15 years private financial institutions have been the INTERMEDIARIES direct source of about 85 per cent of private credit supply, which they financed through domestic and foreign deposit flows, security issues, money market borrowing, and growth in insurance and pension reserves. By half-years the proportion has ranged from a high of 124 per cent of the total in the second half of 1960 to a low of 61 per cent in the second half of 1969, the only half-year in the period in which net inflows of deposits were negative. From 1969 to the first half of 1971, with the surge of domestic deposit growth, institutional supply of credit almost doubled as a rate of flow, rising from $54 billion, net, in 1969 to more than a $100 billion rate this year (line 12 of Table 2)— $12 billion larger than total private domestic supply (line 11). Large as it was, the $50 billion increase from 1969 in institutional credit flow was only half of the increase in domestic deposit inflows to institutions, which grew from almost zero for 1969 as a whole to a $104 billion rate in the first half of this year. Net domestic flows into deposits were in themselves 15 per cent larger than total private credit supply, an unprecedented relationship for any 6-month period in the available record, which begins in 1952. Almost half of the increase in deposit flow from 1969 was offset, however, by major reductions in other sources of intermediary funds: a drop in market borrowing by intermediaries from a $17 billion rate in 1969 to almost zero (line 18), the run-off of foreign liabilities discussed earlier (line 19), and a sharp reduction in other sources of funds (line 20). While substituting deposit funds for other liabilities this year, the institutions also put a relatively large part of their credit flows into marketable securities rather than loans (Table 7), indicating Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 771 TABLE 7 DISTRIBUTION OF DIRECT PRIVATE CREDIT SUPPLY In billions of dollars Mu- Resi- U.S. nici- Cor- den- Open TTyyppee ooff ccrreeddiitt Govt. pal porate tial market Other Total secu- secu- bonds mort- paper Sector rities rities gages 1969 Total private domestic supply 4.6 8.1 12.6 15.8 3.3 34.6 179.0 Nonfinancial sectors 15.0 6.8 7.7 .2 8.6 3.7 42.0 Financial institutions -10.4 1.3 6.6 15.6 3.5 37.0 53.7 Less: Funds raised by finance ((11..77)) ((88..88)) 1971—First half 2 Total private domestic supply -11.6 20.9 23.9 24.7 -.4 33.6 191.1 Nonfinancial sectors -24.1 4.3 11.2 -.9 -6.4 3.8 -12.1 Financial institutions 12.5 16.6 16.7 28.3 1.3 27.8 103.2 Less: Funds raised by finance ((44..00)) n.l^ (-A.l^ (-2.G) 1 Line 11 of Table 2. 2 Seasonally adjusted annual rates. that the upsurge of deposits was substantially larger than could be absorbed by loan demand. Banks and savings institutions bought large amounts of Government securities, while private nonfinancial sectors liquidated holdings at a net rate of $24 billion; banks supplied most of the large net flow in the municipal securities market; and mutual savings banks bought more than a quarter of the net issues of corporate bonds. Although flows into residential mortgages were up considerably from 1969 the rise was offset by a roughly equal drop in other loan flows from intermediaries. Insurance companies and pension funds, while not deposit institutions, have also had sharp increases since 1969 in their net inflows of funds. Very little of the increment has gone into credit market lending, however. In the first half of this year corporate equities absorbed over 60 per cent of the total net flow from insurance and pension funds, compared with 45 per cent in 1969. Equity purchases by institutions this year were at a net rate that was $14 billion higher than in 1969 (line 29 of Table 2), a rise that was almost double the $8 billion increase in net new issues (line 28). Thus in spite of the major shift by corporations toward equity issues in external financing in the first half of the year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
772 FEDERAL RESERVE BULLETIN • OCTOBER 1971 individuals were still net sellers of corporate shares in large amounts, as they had been throughout the 1960's. PRIVATE DOMESTIC Credit market claims and deposit holdings of households, busi- NONFINANCIAL SECTORS ness, and State and local governments (line 25 of Table 2) have represented, directly or indirectly, about 70 per cent of the credit supplied to the nonfinancial economy over the last 15 years. The larger part of these holdings have been in the form of deposit claims on financial institutions and were the principal basis for institutional credit supply. Direct holdings of market instruments consist of U.S. Treasury, agency, and municipal securities, corporate bonds, commercial paper, consumer credit, and a small amount of mortgages. Net purchases of these direct market investments (line 21 of Table 2) since the mid-1950's have averaged 17 per cent of total credit supply (line 7). In 1969 the proportion was very much larger than this (49 per cent), but by the first half of 1971 it had shifted radically, with liquidation of direct holdings offsetting flows by these sectors into deposits at institutions. The combination of negative direct flows and large positive deposit flows by this group had also occurred in earlier relaxations of tight credit conditions in 1954, 1958, 1960-61, and 1967. The pattern reflects mainly a shift of liquidity holdings out of open market instruments, where rates had been more attractive than on deposits during the tight period but then fell below deposit rates as conditions eased. The liquidations this year were mainly in Government securities and open market paper (Table 7), markets in which there had been large purchases in 1969. Net buying of municipal and corporate bonds together were fairly steady over 1969, 1970, and the first half of this year at annual rates between $12 billion and $15 billion. The $100 bilHon rate of flow into private deposits was, as mentioned in the introduction to this article, a central feature of credit supply during the half-year. The growth was in all forms of deposits but was highest in savings institution accounts and in time deposits at banks. The size of the flow was reflected in earlier discussion of credit supply from foreign sources, public agencies, and private intermediaries. The flow was larger as a rate of deposit growth and as a per cent of GNP than in any of the earlier liquidity shifts, but it followed an equally unprecedented shift of deposit funds into the open market in 1969 (Chart 3). As in earlier rebounds, the inflow brought holdings of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 773 deposits to levels in June 1971 that were higher, in relation to both total private assets and GNP, than before the withdrawals began (Chart 1). The size of the swing in 1969-71 out of and then into deposits and the new high levels of deposit holdings have not significantly changed or weakened the stable relation that has existed for many years between total liquid assets of private nonfinancial investors and total GNP. A simple measure of holdings of liquid assets—currency, deposits, U.S. Government and agency securities, and commercial paper—has stayed within 81 and 83 per cent of GNP for most of the last 15 years. The ratio has tended to dip toward 80 per cent at the more acute phases of tight credit episodes—such as in 1966 and the end of 1969— but for June 1971 the ratio had recovered to 81.4 per cent. Within this stability in total liquid asset holdings, there have been longer-run shifts among deposits. Government securities, and commercial paper as well as short-run fluctuations. The new high level for deposit holdings in June (Chart 1) is part of a strong upward trend in time and savings accounts that has offset most of a long downward trend in Government security Private Domestic Nonfinancial Sectors: 1 FINANCIAL ASSET HOLDINGS Total and liquid assets are stable relative to GNP; PER CENT OF GNP 105 90 TOTAL FINANCIAL ASSETS D ASSET 95 ^ I i t I t . ^ i .i t^ growth In deposits offsets decrease in Governments; time and savings deposits grovit '53 '55 '57 '59 '61 '63 '65 '67 '69 '71 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
774 FEDERAL RESERVE BULLETIN • OCTOBER 1971 holdings as liquidity instruments for these sectors. From the end of 1956 to the end of 1970 total holdings of Government securities by the private domestic nonfinancial group fell from 23 per cent of GNP to 13.5 per cent, paralleling a decrease in total Government debt outstanding relative to GNP. At the same time deposits increased from 58 to 67 per cent. Commercial paper holdings have risen sharply in recent years and for 1969 and 1970 they contribute a significant element to the stability mentioned for the later 1960's. This stability in liquid assets is carried over to the larger total of deposits and all security holdings (Chart 1), which includes corporate and municipal bonds, mortgages, and consumer credit paper in addition to the liquid asset holdings. This total has been roughly equal to GNP in dollar amount since 1955, ranging from 101 per cent at high points to a low of 96 per cent in the third quarter of 1969. Following the easing of credit conditions in 1970 this total recovered to 99 per cent in June 1971. The total has a more stable growth rate than GNP (Chart 2), but movements in the two growth rates have been closely coincident. The relation is reflected in Table 2, where net flows into private deposits and securities (line 25) are of roughly the same amounts as dollar changes in GNP over the periods shown (line 26). Annual growth rates from the fourth quarter of 1970 to the second quarter of 1971 were 10 and 11 per cent, respectively, with some distortion in the figures because of the automobile strike in the fourth quarter of 1970. Private Domestic Nonfinancial Sectors: GROWTH RATES of GNP and ASSETS PERCENTAGE CHANGE AT ANNUAL RATES 5-, .L. t '53 '55 In the larger context of long-term trends in private financial investment, there is thus evidence that the massive flow of deposits to institutions since June 1970 was mainly a readjustment of balance sheet structure to a normal pattern. The $100 billion rate of growth this year in private deposits and securities (line 25 of Table 2) was large in dollars and as a percentage of GNP, but it was moderate in relation to the change in GNP and gives no Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 775 evidence that investors have moved to extreme positions on the other side of historical patterns. Like changes in GNP the flow has been a leading series relative to GNP itself, and during rapid increases in GNP such as in the first half of 1971, it has tended to be a large percentage of GNP. Private Domestic Nonfinancial Sectors: NET ACQUISITIONS of FINANCIAL ASSETS Total flows are high this year and include a large shift from securities to deposits; i i r ( [ i i i r I } i i i } i i ) commercial paper has recently been a significant component COMMERCIAL PAPER I —1 I I I I I I 1 I '53 '55 '57 '59 '61 '63 '65 '67 '69 '71 A comparison of the financial assets of private nonfinancial sectors with their borrowings in credit markets supports the picture of normal relationships (Chart 4). Private borrowing has been larger than private flows into deposits and securities since the early 1950's by about 3 per cent of GNP, with the extra credit coming mainly from insurance and pension reserves and retained earnings of financial institutions and flowing into capital expenditures and foreign investment. With its larger flow, private debt has risen from a level of 81 per cent of GNP at the end of 1956 to a level of 111 per cent at the end of 1970. Both the size and the timing of changes in the rate of borrowing have been about the same as those in financial asset flows, however. A slight but distinct lag nevertheless appears in the borrowing series in Chart 4, and private borrowing rates tend to coincide in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
776 FEDERAL RESERVE BULLETIN • OCTOBER 1971 Private Domestic Nonfinancial Sectors: FINANCIAL ASSETS and DEBTS Totals outstanding PER CENT OF GNP 110 120 PRIVATE DEBT __ a, 100 110 90 100 TOTAL FINANCIAL ASSETS 80 lilt 70 . .J. 1 1I . Jl i, i,.. .J J .1 1.. 11 T J Net flows 12 : U,S. GOVT. SORROWING I I j i , i '55 '57 '59 '61 '63 •69 movement more with the level of GNP as against the asset flow correspondence with change in GNP. That pattern is as evident for 1969-71 as for early movements. The difference in timing reflects the timing of Federal Government borrowing, which has tended to be highest in the strong phases of GNP upswings. High rates of Government borrowing reflect the troughs of Government deficit positions on a cash basis, and these deficits—excess cash outflow in current account—are for the private economy net surplus positions—excess cash inflow—that in the first instance are invested directly or indirectly in pubhc securities. The principal difference between this year and earlier cycUcal upswings in this respect has been that the direct buying of Government securities has had a large foreign component, whereas in earlier similar periods the buying was mainly by the banking system. Much of that foreign demand, as mentioned earlier, reflected U.S. bank repayments of foreign borrowings out of the heavy deposit inflows to banks. Insofar as the deposit flows were a return by domestic investors to a more normal liquidity structure following the 1969 distortions, the foreign official demand for Government securities was in this upswing a substitute for bank and other domestic financing of the Federal deficit in earlier cycles. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CREDIT SUPPLY, HI, 1971 777 NOTES CHARTS Amounts outstanding are year-end levels incremented within equities and security credit. Private borrowing is from p. Ayears by seasonally adjusted flows. Flows are shown on the 73.1, top section, lines 23, 24, 25 less equity issues (p. A-73.4, charts as ratios of centered 2-quarter moving averages; last top, line 13). U.S. Government borrowing is on p. A-73.1, period plotted is Ql/71. Asset flows are from p. A-73.1 of line 2. Assets and debts outstanding are from March 1971 this BULLETIN, bottom section, lines 2-12, excluding corporate BULLETIN, pp. A-71.12ff and June 1971 BULLETIN, p. A-71.2. TABLES: References are to statistical section of this BULLETIN. Table Line Source Table Line Source 1 p. A-73.1, top, lines 1, 2, 6, 22-25, with 4 Foreign Table 2, line 19 less oflicial deposits at corporate equities shown separately. (cont.) private U.S. commercial banks, bank call report funds at basis. Includes unknown amount of long- 2 1-6 Ibid. banks term certificates of deposit. p. A-73.9, lines 12-f-13 or p. A-73.1, Foreign pp. A-78-80. For nonmonetary organizamiddle, line 14 excl. equities, private tions, foreign banks, and other foreign- 9 p. A-73.1, middle, lines 2 + 4 + 6. purchases ers, marketable U.S. Govt, bonds and 10 p. A-73.1, middle, line 5. of U.S. notes plus U.S. Treasury bills and cer- 12 p. A-73.6, lower, line 4 + p. A-73.7, top, Govt, se- tificates. For 1971 includes Export-Imline 8. curities port Bank short-term notes not shown 13 p. A-73.6, lower, line 4. separately. 14 p. A-73.1, middle, line 11 before deducting Other Uq- p. A-74, line 34 less 2 preceding lines A-73.7, middle, line 11. uid private in this table. 15 p. A-73.1, middle, line 12 before excluding capital, net equities, which are shown separately on pp. A-73.7-8 for 4 insurance and pen- C. p. A-74. line 42 less line 31. sion fund sectors, Foreign p. A-78, official institutions, marketable 16 p. A-73.8, finance companies, lines 3-5 oflicial pur- U.S. Govt, bonds and notes plus p. A-80, plus open-end investment companies, chases of official institutions, U.S. Treasury bills line 5 plus amounts not shown sepa- U.S. Govt, and certificates plus p. A-83, Table 12, rately for agencies of foreign banks, securities total, plus other claims not shown security brokers and dealers, and banks separately, in U.S. possessions, U.S. offi- p. A-74, line 46 plus line 31. 17 p. A-73.1, bottom, line 3 less currency cial re- (line 24 of Table 2). serve as- 18 p. A-73.6, lower, lines 29 + 30 except sets equities + p. A-73.7, top, line 22. Other Line C above less 2 items below C. In- 19 p. A-73.6, lower, line 35 + p. A-73.9, lines official cludes claims on U.S. banks. 9 + 10 + deposits at U.S. agencies of foreign banks not shown separately less U.S. Govt, p. A-73.2, U.S. Govt, securities, lines p. A-73.6, top, line 13. securities 8 + 9 + 12. 20 p. A-73.1, bottom, lines 16 + 18 + 19, less Residential p. A-73.5, middle, part of line 19 plus p. A-73.6, top, lines 12 +15, plus p. mortgages bottom, line 5. A-73.7, top, line 29 less line 7. FHLB ad- p. A-73.5, bottom, line 10. 21 p. A-73.1, bottom, lines 9 + 10. vances 22 p. A-73.1, bottom, line 5. Other p. A-73.5, middle, line 20 plus bottom, 23&24 p. A-73.1, bottom, line 4. lines 6 + 8 + 9, plus p. A-73.6, top, line 25 p. A-73.1, bottom, line 2 less line 11 + 7 less line 8. line 12. Total bor- p. A-73.1, top, lines 1-20 less line 6. 28 p. A-73.1, top, line 6 + commercial bank rowing and net issues not shown separately, types 29 p. A-73.7, top, line 7 less line 29. Private 3 3 0 1 p. A-73.9, line 11. domestic p. A-73.1, bottom, line 11 or p. A-73.3, credit lines 30 + 31. supply: Total p. A-73.1, top, line 2. Total Table 2, line 11. Foreign p. A-44, bottom. Foreign and international, U.S. Govt, p. A-73.2, U.S. Govt, securities, lines less IMF notes (p. A-42, special notes) securities 14 + 17 + 20. plus Export-Import Bank short-term Other se- p. A-73.1, top, lines 9 + 10 less p. A-73.2, notes not shown separately. curities Private securities, line 19 plus p. A-73.9, Domestic All except foreign. line 11. Loans and p. A-73.1. top, lines 10 + 16 less Table 5, A. p. A-74, line 15. mortgages all excl. U.S. Govt, securities, plus p. B. U.S. Govt. p. A-74, lines 16, 17, 18. A-73.5, line 14. Long-term p. A-74, line 19. private Nonfinan- Sums from pp. A-73.3-A-73.5, top. Total Nonliquid p. A-74. line 27. cial sectors residential mortgages not shown sepashort-term rately. private Financial Sums from pp. A-73.6 bottom and A-73.7 Errors & p. A-74, line 32. institutions top. Residential mortgages and open omissions market paper not shown separately. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Revised Measures of Manufacturing Capacity Utilization The Federal Reserve series for manufactur- vised capacity utilization series are the same ing capacity and capacity utilization have as those described in the November 1966 been revised to be on a comparable basis BULLETIN. The principal data used to comwith the new index of industrial production pile the series are capacity and capacity published in the July 1971 BULLETIN. The utilization rates reported by companies in shift in the comparison base of the produc- the year-end McGraw-Hill reports, "Busition index from the 1957-59 average to ness Plans for New Plants and Equipment," 1967 resulted in a corresponding change in manufacturing capital stock from Bureau of the levels of the capacity index and left the Census Annual Survey of Manufactures and over-all level of the capacity utilization in- Census of Manufactures, and the manudex unchanged. The revised capacity series facturing component of the Federal Reserve appear in the accompanying tables. industrial production index. The quarterly movements of the capacity The capacity series for total manufacturutilization figures have been revised slightly ing has continued to be compiled and pubback to the beginning of 1954 because of lished for two special industry groupings revisions in the monthly fluctuations of the that are not shown separately in either the manufacturing production indexes. The old or the new industrial production index: levels of capacity utilization have been raised primary processing industries and advanced since 1966, with the largest increases of processing industries. The higher utilization around three percentage points occurring in rate for total manufacturing in recent years the period from the second quarter of 1967 has been due primarily to the upward revito the first quarter of 1969. The increases sion in the new production series for the adhave been smaller since the first quarter of vanced processing industries. In addition, an 1969, and the difference in level between the upward shift in the relative importance of new and old series was 1.9 percentage points the advanced processing group augmented in the second quarter of 1971. These revithe effect of higher utiUzation rates for that sions in levels reflect also a recalculation of group on total manufacturing utilization the long-run relationships among certain of rates. the input series, affecting both the post-1966 The revision left utilization rates for the period and the pre-1954 period. In the postprimary processing group essentially un- 1966 period, upward revisions were dominated by the more rapid growth in the new changed except for the 1948-51 period. The production indexes. utilization rates for advanced products and total manufacturing remained largely un- The methods used in calculating the rechanged from 1954 to 1964. NOTE.—This article was prepared by Nathan Quarterly estimates of the capacity and Edmonson of the Board's Division of Research and Statistics. capacity utilization series are available 779 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
780 FEDERAL RESERVE BULLETIN • OCTOBER 1971 around the 25th of the month following each sion of Administrative Services, Board of quarter. Requests for these estimates should Governors of the Federal Reserve System, be addressed to Publications Services, Divi- Washington, D.C. 20551. • TOTAL MANUFACTURING: OUTPUT AND CAPACITY 1967 output= 100 Output Capacity Year Annual Annual QI QII QUI QIV average QI QII QUI QIV average 1948 41.3 41.5 41.9 41.5 41.5 43.7 44.5 45.2 45.9 44.8 40.2 38.7 39.1 38.4 39.1 46.6 47.0 47.5 48.0 47.3 1950 40.6 44.2 48.0 48.8 45.4 48.6 49.1 49.6 50.1 49.4 1951 49.8 49.9 48.7 48.8 49.3 50.7 51.5 52.2 52.9 51.8 49.9 49.1 50.2 54.5 50.9 53.7 54.4 55.3 56.1 54.9 1953 55.8 56.6 56.3 53.1 55.4 56.9 57.7 58.5 59.3 58.1 51.2 50.9 51.1 52.6 51.4 60.1 60.8 61.6 62.3 61.2 55.5 58.0 58.7 60.1 58.1 63.1 64.0 64.9 65.7 64.4 60.1 60.2 59.2 61.5 60.3 66.7 67.8 68.8 69.8 68.3 1957 62.4 61.5 61.6 58.9 61.1 70.9 71.8 72.8 73.8 74.8 1958 55.5 54.6 57.3 60.0 56.9 74.7 75.4 76.0 76.7 75.7 63.0 66.1 63.4 63.6 64.0 77.5 78.2 79.0 79.7 78.6 67.7 66.0 64.7 62.9 65.3 80.4 81.2 81.9 82.7 81.6 61.9 64.5 66.8 69.1 65.6 83.4 84.1 84.8 85.5 84.5 1962 70.2 71.0 71.7 72.4 71.3 86.3 87.2 88.1 89.0 87.7 73.6 75.6 76.1 77.5 75.7 89.8 90.7 91.6 92.4 91.2 1964 78.6 80.6 82.0 83.2 81.1 93.3 94.3 95.3 96.3 94.8 86.2 87.8 90.0 91.9 89.0 97.6 99.2 100.8 102.4 100.0 1966 95.1 97.7 99.3 100.2 98.1 104.1 105.9 107.6 109.4 106.7 1967 98.8 98.9 99.9 101.9 99.9 111.2 112.8 114.5 116.2 113.7 103.5 105.3 106.3 107.3 105.6 117.9 119.6 121.3 123.0 120.5 109.5 110.4 111.8 110.1 110.4 124.9 126.8 128.7 130.6 127.7 1970 106.7 106.7 105.8 101.5 105.2 132.3 134.0 135.6 137.2 134.8 1971j> 110033..55 110055..55 110033..88 113388..88 114400..33 114411..88 1 When manufacturing output as shown here is divided by the ca- the ratio of total manufacturing output to total manufacturing capacity index shown here, the result may differ very slightly from the pacity. Output is seasonally adjusted. estimated utilization rate for total manufacturing as shown in the following table. The differences are due in part to rounding and in part ^ Preliminary. to the fact that the utilization rate for manufacturing has been calculated as a weighted average of utilization for primary-processing indus- NOTE.—Estimates based on data from Federal Reserve, Departtries and utilization for advanced-processing industries, rather than as ment of Commerce, and McGraw-Hill Economics Department. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
CAPACITY UTILIZATION 781 UTILIZATION OF CAPACITY In per cent Total manufacturing Advanced products Primary products Year Annual Annual Annual QI QII QUI QIV average QI QII QUI QIV average QI QII QUI QIV average 1948. 94.4 93.3 92.7 90.4 92.7 91.7 90.3 89.5 87.8 89.8 99.5 98.9 98.6 95.2 98.1 1949. 86.4 82.3 82.1 79.9 82.7 84.4 82.1 81.8 80.0 82.1 90.0 82.8 82.8 79.7 83.8 1950. 83.6 90.1 96.7 97.4 91.9 81.1 86.8 93.4 94.0 88.8 88.2 96.3 102.9 103.9 97.8 1951. 98.1 96.9 93.3 92.3 95.1 95.1 93.3 90.5 91.1 92.5 103.8 103.5 98.5 94.4 100.1 1952. 93.0 90.2 90.8 97.2 92.8 92.5 92.9 92.0 97.2 93.7 93.8 85.3 88.5 97.2 91.2 1953., 98.0 98.0 96.2 89.6 95.5 98.4 98.2 96.6 91.0 96.1 97.2 97.6 95.5 87.1 94.3 1954. 85.4 83.7 83.0 84.4 84.1 87.0 84.5 83.6 83.9 84.7 82.3 82.2 81.9 85.2 82.9 1955., 87.8 90.5 90.4 91.3 90.0 86.4 88.4 88.0 89.1 87.7 90.3 94.3 95.0 95.3 93.7 1956.. 90.0 86.1 88.1 88.2 87.8 87.1 86.0 86.8 86.9 94.2 92.0 86.1 90.4 90.7 1957., 88.0 85.6 84.6 79.8 84.5 87.3 85.4 84.1 79.7 84.1 89.2 86.1 85.6 80.0 85.2 1958.. 74.3 72.5 75.3 78.1 75.1 75.3 73.4 74.5 76.9 75.0 72.5 70.9 76.9 80.5 75.2 1959., 81.2 84.4 80.3 79.8 81.4 79.4 81.8 81.8 79.9 80.7 84.6 89.3 77.6 79.6 82.7 1960.. 84.1 81.2 79.0 76.2 80.1 82.9 81.4 79.5 77.3 80.3 86.5 81.0 78.1 74.1 79.4 1961.. 74.2 76.7 78.7 80.8 77.6 75.3 76.6 77.5 79.7 77.3 72.3 76.8 81.0 82.8 78.2 1962., 81.3 81.4 81.4 81.4 81.4 80.3 81.4 81.6 81.2 81.1 83.1 81.4 81.1 81.6 81.8 1963.. 81.9 83.3 83.1 83.8 83.0 81.8 82.2 82.8 83.3 82.5 82.1 85.2 83.8 84.8 84.0 1964.. 84.2 85.4 86.0 86.3 85.5 83.4 84.5 84.4 84.4 84.2 85.7 87.1 89.0 90.1 88.0 1965., 88.3 88.5 89.3 89.7 89.0 86.7 87.1 87.9 89.3 87.8 91.2 91.1 91.8 90.5 91.1 1966., 91.4 92.3 92.3 91.6 91.9 91.0 91.9 92.0 92.2 91.8 92.2 92.9 92.8 90.6 92.1 1967., 88.9 87.7 87.3 87.7 87.9 89.9 89.5 88.6 88.4 89.1 87.1 84.4 84.9 86.5 85.7 1968., 87.9 88.1 87.6 87.2 87.7 88.8 88.3 88.2 87.3 88.1 86.1 87.6 86.6 87.0 86.8 1969., 87.7 87.1 86.9 84.3 86.5 87.1 86.1 85.8 82.5 85.4 88.7 88.8 89.0 87.6 88.5 1970., 80.6 79.6 78.0 74.0 78.1 79.2 78.2 76.1 71.7 76.3 83.4 82.3 81.5 78.3 81.4 1971P 74.5 75.1 73.2 72.2 72.2 71.6 79.0 80.7 76.1 t> Preliminary. NOTE.—Seasonally adjusted estimates based on data from Federal Reserve, Dept. of Commerce, and McGraw-Hill Economics Dept. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations This 19th joint interim report reflects the This report was prepared by Charles A. Treasury-Federal Reserve policy of making Coombs, Senior Vice President in charge of available additional information on foreign the Foreign Department of the Federal Reexchange operations from time to time. The serve Bank of New York, and Special Man- Federal Reserve Bank of New York acts as ager, System Open Market Account, It agent for both the Treasury and the Federal covers the period March through September Open Market Committee of the Federal Re- 197L Previous reports have been published serve System in the conduct of foreign ex- in the March and September BULLETINS oj change operations. each year beginning with September 1962. In 1970, the official settlements balance of 1970 was facilitated by the fact that a subthe United States swung into a deficit of stantial part of dollar reserve gains abroad $10.7 billion from a surplus of $2.7 billion favored those countries that were in the in 1969. This deterioration was attributable process of rebuilding depleted dollar reprimarily to short-term capital outflows in serves or were content to accumulate dollars response to interest rate differentials. As in anticipation of scheduled debt repayments U.S. money rates and credit conditions eased to U.S. agencies or to the International progressively in 1970, European rates lagged Monetary Fund (IMF). As of the end of well behind, and short-term money flowed in 1970, Federal Reserve swap debt amounted heavy volume from the United States to the to no more than $810 million. Market con- Euro-dollar market and on from there to fidence in the dollar was surprisingly well the national money markets and central sustained. bank reserves of Europe. Early in 1971, however, the international These outflows of dollars were naturally financial markets began to sense an impendattracted to the highest foreign bidders. ing crisis of the dollar. As interest rate differ- Through most of the period, German short- entials between the United States and term rates exerted the strongest pull, with Europe widened out still further, outflows the result that German banks and industrial of short-term funds to the European markets firms—in seeking an escape from stringent accelerated and forced most European curcredit conditions in Germany—^borrowed rencies hard against their ceilings. Despite well over $6 billion abroad in 1970, thereby Federal Reserve and Treasury efforts to slow more than accounting for the $6.3 billion down or offset the repayment of U.S. bank reserve gain of the German Federal Bank. debt to the Euro-dollar market, $3.3 billion Other major recipients of the overflow from more of such debt was repaid during the first the Euro-dollar market were the United quarter of 1971. Even more ominous, the Kingdom, France, Italy, Belgium, the Neth- severe slump of the U.S. trade surplus during erlands, and Switzerland. late 1970 persisted into early 1971 and Financing by the United States of the un- aroused increasing apprehension of a loss of usually high official settlements deficit in U.S. competitive strength in world markets. 783 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
784 FEDERAL RESERVE BULLETIN • OCTOBER 1971 As the weekly figures of dollar reserve gains German economic research institutes, recabroad confirmed the generalized weakness ommending either a floating of the mark of the dollar and the prospect that the U.S. rate or revaluation as the best solution to deficit was rising well above the abnormally this and other policy dilemmas, was greeted high level of 1970, overt speculation began sympathetically by certain high-ranking Gerto appear in the exchange markets in March, man officials. The market seized on this apfurther swelUng the torrent of dollars flowing parent shift of policy, and speculative funds to foreign markets. flooded into Germany. The German central Although the developing weakness of the bank was forced to buy dollars in mounting dollar was generalized across the European volume: more than $1 billion on May 3 and currency exchanges, the German mark was 4 and a further $1 billion in the first 40 minparticularly exposed to speculative buying utes of trading on May 5, at which point it pressure in view of the continuing strength withdrew from the market. of Germany's trade surplus, a severely re- To protect themselves against the backstrictive credit policy that kept German in- wash of the German move, the central banks terest rates well above international levels, of the Netherlands, Switzerland, Belgium, and the lack of restraints on German indus- and Austria similarly terminated official suptrial borrowing abroad. During the period port of the dollar that same morning. Over February-April 1971, German corporate the weekend, the Swiss franc and the Ausborrowing abroad amounted to roughly $2.5 trian schilling were revalued by 7.07 per cent billion, nearly equivalent to total business and 5.05 per cent, respectively, while the lending by the entire German banking sys- German mark and Dutch guilder were altem over the same period. In February, the lowed to float. The Belgian market was re- German Federal Bank tried to squeeze out opened on the basis of the previous interventhe interest-arbitrage incentive to short-term tion limits, but with a further separation capital inflows by driving the forward mark between the official and financial franc marto a sizable discount through forward sales kets. The revaluations of the Swiss franc and conducted through the agency of the Federal Austrian schilling did little, however, to Reserve Bank of New York. This experi- bring about a spontaneous return flow of speculative funds as the foreign exchange ment proved excessively costly and was markets remained highly nervous. In parquickly abandoned. ticular, the flotation of the mark and guilder With speculation beginning to appear in aroused widespread fears in the market that late March and early April, the German other countries might take similar action. Federal Bank initiated a new program of Furthermore, as the mark and guilder floated forward mark sales in Frankfurt, with the upward, they tended to become barometers objective of reassuring the market on the of weakening confidence in the dollar. stability of the mark parity. This operation succeeded in temporarily restoring a fragile Meanwhile, current statistics on the permeasure of confidence, but the German Gov- formance of the U.S. economy failed to meaernment remained confronted with the di- sure up to earUer hopes, and the foreign lemma of how to make its restrictive credit trade balance slipped into a deepening defipolicy effective while simultaneously allow- cit in April and subsequent months. According its business corporations unfettered ac- ing to Department of Commerce figures, the cess to the Euro-dollar market. trade deficit for the second quarter was $1.0 Early in May, a report by the main billion, while the over-all U.S. payments Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 785 1 EXCHANGE RATES: Sept. 1970 to Sept. 1971 CENTS PER UNIT OF FOREIGN CURRENCY HIGH 4H 4 AVERAGE NOON RATES 4 JAPAN 29.5 247.5 IU f GERMANY 245.0 L UNITED KiNCDOM Ih^ 29.0 0.00 |1 NETHERLANDS 41 m 25.0 BbtGIUIVf 24.4852 (5/16^711 SWITZERLAND hff^ 100.0 - (lUunBttill l 15//93//771111 ^ I- FRANCE t il 1 f i i t , t { i,., i i it 4 11 i l l. SEPT. NOV. JAN. MAR. MAY JULY SEPT. SEPT. NOV. JAN. MAR. MAY JULY SEPT. 1970 19)1 1970 1971 Black rule indicates par value of currency. Weekly averages of daily N.Y. noon offered rates except when currency was allowed to float, or was effectively floating. deficit for the first half of the year soared to range of trade and investment decisions in $11.6 billion on an official settlement basis. the market. In July and early August events moved in- On Friday, August 6, a congressional subexorably toward their climax as speculative committee report asserted that the dollar anticipations reached throughout the full had become overvalued and called for cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
786 FEDERAL RESERVE BULLETIN • OCTOBER 1971 rective action through a general realignment lars, which by the month-end had swollen ofof exchange rates. That same day the U.S. ficial reserves by $4.4 billion. On August 28, Treasury reported a loss of gold and other official intervention at the ceiling for the yen reserve assets totaling more than $1 billion, was suspended, and the yen immediately mainly as a consequence of British and rose 4.7 per cent; in subsequent weeks the French repayment of debt to the IMF. Over yen moved gradually higher. By October 8, the following week, the flight from the dollar the rates of the major trading currencies of accelerated sharply as $3.7 billion moved the world had moved to the following peracross the exchanges and into central bank centage premiums over their former official hands. On Sunday, August 15, President ceilings: ^ Nixon announced a major new program of Currency Premium over ceiling domestic and international economic mea- German mark 9.5 sures. Using powers available under the Japanese yen 7.6 Economic Stabilization Act of 1970, the Dutch guilder 7.0 Canadian dollar 6.4 President ordered a 90-day freeze on wages Belgian franc: Commercial 6.4 and prices and, in order to stimulate a more Financial 6.3 rapid expansion of production and employ- Sterling 2.9 Italian lira 1.4 ment, recommended new tax measures. With Swiss franc 1.1 respect to international payments, the Presi- French franc: Commercial —0.3 dent introduced a 10 per cent temporary sur- Financial 1.7 charge on dutiable imports into the United The exchange rate structure thus emerg- States and announced a temporary suspening after August 15 was, in most instances, sion of convertibility of the dollar into gold the product of controlled rather than free and other reserve assets. floating. Many central banks continued to The major European governments kept intervene on an ad hoc basis, while the their exchange markets closed all of the folmarket was further strongly influenced by a lowing week, as they sought to develop some wide variety of new exchange controls, the joint policy response to the U.S. measures. U.S. import surcharge, and sharply conflict- These negotiating efforts failed, and on ing official appraisals of an appropriate re- Monday, August 23, European governments alignment of parities. reopened their exchange markets on an un- During the period under review, the Fedcoordinated basis. While each government eral Reserve made frequent and sizable continued to adhere to its pre-August 15 drawings on several of the swap lines in parity, all but the French Government sus- order to absorb temporarily foreign official pended their commitments to defend the pre- ^The appreciation of floating currencies is meavious upper limits of their exchange rates. sured throughout this report as the percentage pre- Such continuing intervention by the Bank of mium of the midpoint between bid and offered rates over the former official ceiling, all in cents per unit France was confined, however, to a segreof foreign currency. Since the currencies concerned gated market for commercial transactions, had been at, or close to, the official upper intervention limits for some time before being allowed to float, while all other transactions were diverted to this is the most meaningful measure of the actual a "financial franc" market that was allowed appreciation of the rates. Many reports covering the to find its own level. The Japanese Govern- recent period have used the percentage premium over parity as the common point, and a reasonable approximent initially sought to maintain the rate for mation of that value can be calculated by adding 0.75 the yen by continuing to intervene at the ceil- percentage point to the premiums quoted in this report. In the case of the Swiss franc, however, 1.8 ing, but it was swamped by an inflow of dolpercentage points should be added. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 787 TABLE 1 through Treasury sales of gold and Special FEDERAL RESERVE RECIPROCAL CURRENCY Drawing Rights (SDR's), U.S. borrowings ARRANGEMENTS from the IMF, Treasury issuance of foreign In millions of dollars currency securities, and use of foreign cur- Amount of rency balances. The residual swap debt com- Institution facility, Oct. 14, 1971 mitments outstanding as of August 13 thus amounted to $3,045 million. Austrian National Bank 200 B N a a n ti k o n o a f l C B a a n n a k d a o f Belgium 1,0 6 0 00 0 No further drawings on the swap lines by N Ba a n ti k o n o a f l E B n a g n la k n o d f Denmark 2,0 2 0 0 0 0 either the Federal Reserve or foreign central Bank of France 1,000 banks have been made since August 13. As German Federal Bank 1,000 Bank of Italy 1,250 individual swap drawings have matured they Bank of Japan 1,000 Bank of Mexico 130 have been rolled over, except for a $35 mil- Netherlands Bank 300 lion Belgian franc drawing that was repaid Bank of Norway 200 B Sw an is k s o N f a S ti w o e n d a e l n B ank 1,0 2 0 50 0 in early October with francs purchased in the market. Thus, as of October 14, $3,010 Bank for International Settlements: Swiss francs/dollars. 600 Other authorized European currencies/dollars 1,000 million of swap debt remained outstanding. Total 11,730 Most of this debt was incurred to offset speculative flows of funds that in due course will dollar gains that might otherwise have been presumably reverse themselves and so permit converted into gold or other reserve assets. repayment of the swap debt outstanding. (See Table 1 for the listing of the swap ar- Of the Federal Reserve's total swap comrangements and Table 2 for the swap opera- mitments, $1.6 billion is outstanding under tions described in this report.) As of the the Swiss franc swap lines with the Swiss Nabeginning of 1971, Federal Reserve debt tional Bank and the Bank for International under the swap lines amounted to $810 mil- Settlements (BIS). As of the beginning of lion. Through August 13, new drawings 1971, Federal Reserve swap debt to the amounted to $3,565 million, while repay- Swiss National Bank amounted to $300 milments of $1,330 million were effected lion and rose further to $450 million on TABLE 2 FEDERAL RESERVE SYSTEM SWAP ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent Drawings, or repayments ( —) SSSyyysssttteeemmm SSSyyysssttteeemmm ssswwwaaappp ssswwwaaappp TTTrrraaannnsssaaaccctttiiiooonnnsss wwwiiittthhh——— dddrrraaawwwiiinnngggsss,,, 1971 dddrrraaawwwiiinnngggsss,,, JJJaaannn... 111,,, OOOcccttt... 111444,,, 111999777111 111999777111 I II III Oct. 1-14 National Bank of Belgium 221100..00 / 1 / 1 --11 33 22 33 55 55 ..00 ..00 --22 11 00 22 55 55 .. .. 00 00 260.0 -35.0 }}}} 555566665555....0000 Bank of Eneland 775500..00 777755550000....0000 German Federal Bank 666000...000 66660000....0000 Netherlands Bank 333000000...000 \\\---333 111 000 333 000 000 ...000 ...000 ---222 111 555 222 000 000 ... ... 000 000 Swiss National Bank 333000000...000 ---444 111 555 555 000 000 ... ... 000 000 222555000...000 750.0 }}}}llll,,,,000000000000....0000 Bank for International Settlements (Swiss francs) 666000000...000 666600000000....0000 Bank for International Settlements (Belgian francs) 333555...000 33335555....0000 TToottaall 881100..00 / 1 / 1 --88 66 77 11 55 55 ..00 ..00 --44 55 55 55 55 55 .. .. 00 00 2,395.0 --3355..00 }}33,,001100..00 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
788 FEDERAL RESERVE BULLETIN • OCTOBER 1971 March 1. This debt was fully liquidated in which was offset to the extent of $55 million early March through a Treasury sale of gold by repayments financed by U.S. Treasury and Swiss franc securities to the Swiss Na- sales of SDR's to the National Bank. On tional Bank, together with an outright pur- June 21, the Belgian franc swap debt of the chase of Swiss francs by the Federal Reserve Federal Reserve was reduced from $490 from the Swiss National Bank. million to $340 miUion through a U.S. No further drawings on the Swiss Na- Treasury'drawing of $150 million of Belgian tional Bank were made until May 17, when francs from the IMF. the Federal Reserve made a $250 million Again in late July and August, however, equivalent drawing in order to assist return heavy speculative flows of funds into flows to the New York market of specula- Belgium necessitated $160 milUon of new tive funds that had moved into Switzerland drawings by the Federal Reserve, thereby exin anticipation of the revaluation of the hausting the $500 million line with the Na- Swiss franc on May 9. During the first half tional Bank. On August 12, the facility was of August, the Swiss National Bank was enlarged to $600 miUion and the additional forced to absorb a massive inflow of dollars. $100 million of Belgian francs thus made In response to a Swiss request, the Federal available was fully drawn. Finally, on Au- Reserve drew the remaining $350 million gust 13, the Federal Reserve drew $35 million of Belgian francs from the BIS under the equivalent available under the $600 million $1 billion reciprocal line that provides for swap line with the National Bank, and after swaps of dollars against certain European that facility had been enlarged to $1 billion currencies other than Swiss francs. This on August 12, drew in full the additional drawing brought the Federal Reserve swap $400 miUion of Swiss francs thus provided. commitments in Belgian francs to $635 mil- Furthermore, the System drew the entire Uon equivalent. Then in October the Fed- $600 million equivalent available under the eral Reserve liquidated a maturing swap Swiss franc/dollar swap lines with the BIS, drawing of $35 miUion by purchasing the thereby increasing System commitments in necessary francs in the exchange market, Swiss francs to a total of $1.6 billion. thereby reducing the debt outstanding to As of October 14, $600 million of Fed- $600 miUion. eral Reserve drawings in Belgian francs remained outstanding on the swap lines with As previously noted, the German Federal the National Bank of Belgium and with the Bank initiated in early April 1971 a series of BIS. Such swap debt stood at $355 million forward mark operations in an effort to on January 27 but was reduced to $230 mil- strengthen market confidence in the mark lion on January 29 by a U.S. Treasury draw- parity. The Federal Reserve Bank of New ing of $125 million of Belgian francs from York, deaUng for the System account, parthe IMF. As Euro-dollar rates fell sharply ticipated in these forward mark sales to the during the first quarter of 1971, an influx of extent of $75.7 miUion. Cover for these short-term funds into Belgium necessitated Federal Reserve commitments to the market new Federal Reserve drawings, which rose was provided in part by balances on hand to a total of $450 million equivalent by early and in part by swap drawings totaling $60 April. The speculative crisis culminating in miUion equivalent on the German central the floating of the mark in early May forced bank. These drawings remained outstandthe Federal Reserve to draw an additional ing as of October 14. $95 million on the Belgian franc swap line. The remaining $750 milUon of Federal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 789 Reserve swap debt is accounted for by a prior understandings governing the swap drawing in this amount on the swap line arrangement with the Federal Reserve, imwith the Bank of England, executed on mediately sold suflicient guilders to the August 13. Here again, this swap debt re- System to enable it to liquidate the $250 milmained outstanding as of October 14. lion equivalent swap commitment. This re- Finally, the Federal Reserve was indebted payment procedure naturally added to the as of the beginning of 1971 to the full ex- uncovered dollars on the books of the Nethtent of the $300 million available under the erlands Bank, and the U.S. Treasury subseswap line with the Netherlands Bank. Dur- quently absorbed an equivalent amount of ing the first quarter of 1971 this $300 mil- such dollars through a $150 million sale of lion of Federal Reserve debt, plus another SDR's on May 21 and a drawing of $100 $25 million of surplus dollars on the books million equivalent of guilders from the IMF of the Netherlands Bank, was fully liqui- on June 21. dated in a series of special transactions in- Despite such heavy swap drawings by the volving (1) a Federal Reserve sale of $75 Federal Reserve during the period under remillion equivalent of German mark bal- view, the U.S. stocks of gold and other reances to the Netherlands Bank, (2) a U.S. serve assets were severely eroded by the flow Treasury sale of $25 million of gold and of dollars into foreign central banks. From $100 million of SDR's to the Dutch authori- January 1 through mid-August a total of ties, and (3) a U.S. drawing of $125 mil- $3.1 billion in such assets was paid out, inlion equivalent of guilders from the IMF. cluding $864 million of gold, $394 million Again in the late spring, however, the of foreign exchange, $480 million of SDR's, speculative crisis leading up to the floating and $1,362 million taken down against the of the mark as well as other factors necessi- U.S. IMF position. tated new Federal Reserve drawings on the This substantial use of reserve assets was Netherlands Bank in the amount of $250 supplemented by new issues of U.S. Treasury million equivalent. When the Dutch Govern- foreign - currency - denominated securities ment allowed the guilder to float on May 10, (Table 3). In March the Treasury issued the Netherlands Bank, in accordance with $249.7 million Swiss-franc-denominated TABLE 3 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues, or redemptions (-) OOOuuuttt--- OOOuuuttt--ssstttaaannndddiiinnnggg,,, ssstttaaannndddiiinnnggg,,, IIIssssssuuueeeddd tttooo——— JJJaaannn... 111,,, 1971 OOOcccttt... 111444,,, 111999777111 111999777111 I III III German Federal Bank 555553333399999.....66666 555553333399999.....66666 German banks 111113333355555.....55555 111113333355555.....55555 Swiss National Bank 555554444400000.....66666 249.7 ---777 888 999 333 000 111 ... ... 555 777 333.0 }}}}}lllll,,,,,111117777733333.....22222 Bank for International Settlements ^ 111115555500000.....00000 ---111 111 555 555 000 777 ... ... 000 555 11111 111115555588888.....11111 TToottaall 11,,336655..77 --99 99 44 88 00 99 .. .. 55 33 333.0 }}22,,000066..44 1 Transactions related to activation by the Swiss National Bank of the revaluation clause covering all outstanding Swiss-franc-denominated securities of the U.S. Treasury at the time of the Swiss franc's revaluation in May. 2 Denominated in Swiss francs. NOTE.—There were no issues or redemptions during the period October 1-14. Discrepancies in totals result from minor valuation adjustments and from rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
790 FEDERAL RESERVE BULLETIN • OCTOBER 1971 TABLE 4 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings, or repayments (-) DDDrrraaawwwiiinnngggsss DDDrrraaawwwiiinnngggsss BBBaaannnkkksss dddrrraaawwwiiinnnggg ooonnn SSSyyysssttteeemmm ooonnn SSSyyysssttteeemmm,,, 1971 ooonnn SSSyyysssttteeemmm,,, JJJaaannn... 111,,, SSSeeepppttt... 333000,,, 111999777111 111999777111 I II III BBBaaannnkkk fffooorrr IIInnnttteeerrrnnnaaatttiiiooonnnaaalll SSSeeettttttllleeemmmeeennntttsss ff 2211..00 66..00 1 (((aaagggaaaiiinnnsssttt GGGeeerrrmmmaaannn mmmaaarrrkkksss))) 11--2211..00 --66..00 J TTToootttaaalll / 1 / 1 --22 22 11 11 ..00 .. 00 --66 66 .. .. 00 00 \/ certificates of indebtedness to the Swiss Na- GERMAN MARK tional Bank in order to help repay System Inflationary trends in Germany, reflecting swap commitments of $450 million, and in both demand and wage-push pressures, have August it issued a $333 million equivalent been a major concern of the German Govnote to that bank to cover the Swiss National ernment since early 1970. Although some Bank's dollar purchases of August 13. As of fiscal measures were introduced in the sec- October 14, the total of such securities out- ond half of 1970, the major burden of the standing amounted to $2,006 million. The anti-inflationary effort was assumed by the Treasury's only swap operation during the monetary authorities, who used both interperiod was under a special $100 milUon est rates and reserve requirements to refacility with the National Bank of Belgium, strain monetary and credit expansion. With entered into and drawn upon in full in May domestic credit demand pressing against the and liquidated at maturity in early August. restricted supply of domestic funds, German As shown in Table 4, drawings on the banks began early in 1970 to repatriate for- Federal Reserve by its swap partners during eign balances and to borrow additional funds the period were confined to purely routine from abroad to meet their customers' needs. use by the BIS of one of its Unes in connec- Starting in the spring of 1970 the German tion with overnight cash needs. Federal Bank had moved to curb such in- 2 YIELD COMPARISONS: 3-MONTH MATURITIES EXCEPT WHERE NOTED PER CENT ! LONDON Ml LONDON lA EURO-DOLLARSi I EURODOLLARS! \ Va yvH/pRANKFURT * U.K. LOCAL^^ / V INTERBANK DEPOSITS AUTHORITY V DEPOSITS ^ 1 t i n. J jf 1 A • 1 1 1 1 1 1 1 1 _• t ^ SEPT. NOV. JAN. MAR. MAY JULY SEPT. SEPT. NOV. JAN. MAR. MAY im <11^1 1970 1971 1970 1971 Weekly averages of daily rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 791 flows, largely through marginal reserve re- market, for the account of the German cenquirements on the growth of the banks' for- tral bank. eign liabilities, and these measures were This operation had the immediate effect strengthened over the course of the year. of moving the spot mark rate away from its Full freedom remained available, however, ceiling and halting the spot inflow into Gerfor German business corporations to borrow man reserves, and within a few days the directly abroad, particularly in the Euro- forward mark discount widened to nearly dollar market, to meet their credit needs. 2 per cent. Meanwhile, however, the under- These inflows of short-term funds are esti- lying interest differential had also widened mated by the Federal Bank to have totaled to around 2V2 per cent owing mainly to a some $6.6 billion for the year, more than further decline of Euro-dollar rates, and it Germany's reserve gain of $6.3 billion for soon became clear that massive sales by the that period. German central bank would be required to In early 1971 the continuing decline in maintain the forward mark at a sufficient dis- Euro-dollar rates opened wider arbitrage in- count. Accordingly, the operation was centives in favor of the mark, and German phased out by mid-March after $537 million corporations further increased their heavy of forward mark sales. As the spot rate recourse to foreign financing. By late Janu- moved back to its ceiling, the German cenary the German Federal Bank was again tral bank was again forced to take in dollars. absorbing substantial amounts of dollars On March 31 the German Federal Bank from the market. Toward the end of Febru- Council, in a long-awaited move, cut the ary, the uncovered arbitrage incentives in central bank's discount and "Lombard" favor of Germany stood at around 2 per- rates by 1 full percentage point to 5 per cent centage points on a 3-month comparison, and 6V2 per cent, respectively, effective while the discount on the forward mark was April 1. At the same time, however, the only about IV4 per cent per annum. As an Council reinforced credit restraint by realternative to cutting domestic interest rates, ducing the banks' rediscount quotas by 10 but still seeking to close this differential, the per cent. With little easing of domestic Federal Bank in late February asked the liquidity conditions thus in prospect, bid- Federal Reserve Bank of New York to offer ding for marks surged with strong specula- 3-month forward marks in the New York tive overtones. Within 3 days, the Federal PER CENT $ OF NEW YORK BANKS: 60-89 DAYS J I I I I i i i I. I I . « .. SEPT. NOV. JAN. MAR. MAY JULY SEPT. SEPT. NOV. JAN. MAR. MAY JULY SEPT. 1970 1971 1970 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
792 FEDERAL RESERVE BULLETIN • OCTOBER 1971 Bank took in more than $1.3 billion in hold- oping rift among European Economic Coming the spot mark at the ceiling and swapped munity (EEC) nations following a meeting some $600 million of this inflow out in the of the Finance Ministers a few days earlier, market for 3 months' delivery. reacted sharply, and both spot and forward In this atmosphere of mounting apprehen- marks were heavily bid. sion, the German central bank sought to re- On April 30, German reserves stood at assure the market by initiating on April 2 a $16.7 billion, representing a gain of nearly new series of forward operations, offering $3.0 billion for the first 4 months of 1971, 3-month marks at the spot ceiling rate. The while the forward dollar contracts of the Federal Reserve Bank of New York, dealing German Federal Bank had risen to $2.7 for System account, joined in the operation bilUon. Over the same period, German corby offering forward marks at the same rate porations had raised close to $4 billion in New York after the Frankfurt market had abroad, representing roughly half of their closed. This concerted intervention had a total credit needs. calming effect on the market over the next On Monday, May 3, the main German few weeks, and the spot rate for the mark economic research institutes issued a report soon moved away from the ceiUng as funds caUing for a prompt floating or revaluation began to flow out of Germany on a covered of the mark. Sympathetic reactions to this basis. The earher influx had helped to pro- report by high-ranking German officials perduce ample liquidity conditions in Germany, suaded the market that some such move and with short-term money market rates de- would soon be forthcoming. In holding the clining there while Euro-dollar yields were spot rate at the ceiling, the German Federal now turning upward, near-term arbitrage Bank was accordingly flooded with offers of incentives shifted in favor of Euro-dollar dollars against marks. Over the 2 days May placements. 3 and 4, the bank had to absorb more than Underlying market nervousness surfaced $1 biUion, and on the morning of Wednesfrom time to time during the month, how- day, May 5, a further $1 billion was taken in within the first 40 minutes of trading. At ever, and the Federal Bank and the Federal that point the German Federal Bank sus- Reserve continued the operation through pended its market operations. Although Germost of April—offering forward marks on man banks were legally free to continue to the same basis and doing business nearly deal if they wished, there was no official every day. By late April, these forward sales fixing, and trading virtually ceased in the by the German central bank had reached Frankfurt market for the rest of the week. $1.5 billion equivalent, while those by the The mark was still traded elsewhere during Federal Reserve amounted to $75.7 milUon. the 3 days, however, and in New York the Cover for these Federal Reserve commitrate rose to around $0.2800, or some 1.6 per ments to the market was provided in part by cent above the previous ceiling. balances on hand and in part by swap draw- On Sunday, May 9, after an inconclusive ings totaling $60 million equivalent on the German Federal Bank. On April 28, the meeting of the EEC Finance Ministers, the German Federal Bank Council decided that German authorities announced that, as an the time had come to withdraw its offer of anti-inflationary measure, the trading limits forward marks at a fixed rate and to let the for the mark would be suspended tempoforward rates reach their own level. The rarily—effectively allowing the mark rate to market, already beset by rumors of a devel- float—although the official parity was to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 793 remain unchanged. It was also announced tightening was supported by other actions, that other measures to fight inflation were including a substantial increase in the banks' being prepared; these included the reimposi- minimum reserve requirements. On June 2, tion of a ban on interest payments on large requirements against domestic liabilities deposits held by nonresidents, the barring of were raised across-the-board by 15 per cent, foreigners from buying German money while the requirements against foreign liamarket paper, and the freezing of some biUties were lifted to twice the level of the Federal and state government spending. The new domestic rates. With large tax payments Frankfurt market reopened on May 10, and reducing domestic liquidity further, German the mark traded well above its former ceil- interest rates advanced sharply, and by late ing—fluctuating sharply in response to both June, when the stringency had become facts and rumors. Traders generally doubted acute, they moved above Euro-dollar rates that the rate would return to within its old for comparable maturities, maintaining a limits, and the possibility was widely dis- substantial edge through July. cussed that the German authorities would These arbitrage considerations, along with begin to sell dollars in the market at rates the continuing view in the market that the well above the former official ceiling. prospects were still strong for an even fur- By May 24 the spot mark had risen to a ther rise in the mark rate, kept the rate buoypremium of 3.7 per cent above the previous ant, and it sometimes moved above levels ceiling but then it began to settle back, as at which the German Federal Bank was then rising Euro-dollar rates increased the cost willing to sell dollars. Beginning in mid-July, of holding speculative mark positions. On however, the Federal Bank progressively June 1 the spot rate dropped sharply, but lowered its selling rate for dollars and the when the mark weakened further on the mark rate spiraled upward. Over all, from morning of June 2 in Frankfurt, the German June 3 through the end of July, the Federal central bank offered to sell dollars in small Bank sold $4.8 billion in the spot market amounts at the equivalent of about $0.2803. while it took in a total of $2.7 bilUon This led to an abrupt reversal in the market, through maturing forward contracts. Thus, but the German central bank nevertheless on balance, its reserves fell by some $2 bilbegan to sell dollars the next morning. These lion to $17.0 billion at the end of July. sales were not at fixed levels but on the basis By late July the spot mark had leveled off of the most acceptable rates to the Federal again, to around $0.2890, a 4.9 per cent Bank at any given point in time. The opera- premium. But a new upsurge in the rate detion was pursued over the following weeks, veloped in early August, when generahzed resulting in a progressive ratcheting upward speculation against the dollar developed in of the mark rate. By mid-June the authori- full force. As the mark rose, the German ties had sold $1.7 billion, considerably more Federal Bank stopped offering dollars. On than they had taken in under maturing for- August 12, with the market beset by rumors ward contracts from the operations in Febru- of a new parity being set at even a higher ary and March, and the spot mark had ad- level, the rate jumped to a premium of 7.6 vanced to a 3.6 per cent premium over the per cent, and the Federal Bank stepped in on former ceiling. the other side of the market and purchased The heavy outffow of funds from Ger- a modest amount of dollars. many helped to tighten domestic money After President Nixon's address on Aumarket conditions considerably, and this gust 15, formal exchange deahngs were sus- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
794 FEDERAL RESERVE BULLETIN • OCTOBER 1971 pended in Germany through the full week had moved below rates on comparable sterof August 16-20. During the week, con- ling instruments, and the further decline in sultations proceeded within the EEC coun- early 1971 widened the gap even more. In tries as to the basis under which the markets January, the British authorities moved to would be reopened. With no agreement reduce the resulting inflows of funds by reached among the EEC members on a com- modifying the exchange control regulations mon exchange policy, the German Govern- so as to restrain new foreign currency borment reopened the market on August 23 rowings by British corporations for domestic with the mark rate floating as before. With use. Throughout the first quarter, with pertrading volume continuing at generally re- sistent rumors that the Bank of England's duced levels, the mark rate fluctuated closely discount rate would be cut (it had been held around a premium of 7 per cent until mid- at 7 per cent since April 1970), heavy de- September, after which it rose sharply to as mand developed for British Government sehigh as a 10 per cent premium prior to the curities, while seasonal tax payments further IMF meeting. The German Federal Bank absorbed liquidity. The inflows from abroad then began to intervene in both spot and for- continued and, with sterling holding near its ward markets to moderate the rise in the upper limit, the Bank of England took in a rate. By early October the mark rate had large volume of dollars through February backed off somewhat to a premium of and March. around 9.5 per cent. From the reserve gains in the first quarter, the U.K. authorities were able to repay more STERLING than $1.6 billion of international credits, thereby fully Uquidating their indebtedness Sterling showed increasing strength as 1971 to all monetary institutions other than the began, with the spot rate moving in January IMF. Among the repayments made during from below parity to near its $2.42 upper the quarter were the remaining $226 millimit. Britain's current-account balance of lion of credits under the 1966 Basle arrangepayments was still in surplus, and seasonal ment (of this, $76 million was shared factors are favorable early in the year. The equally by the U.S. Treasury and the Federal dominant source of demand for sterling, Reserve) and $99 million to the same U.S. however, was a growing inflow of interestagencies representing the last portion of sensitive funds, coupled with the pressures sterling which had been held on a covered or arising from heavy tax payments against the guaranteed basis. In addition, on March 31 background of a severe credit squeeze and the United Kingdom liquidated prior to mareduced corporate Uquidity. Domestically, turity $685 million of its obligations to the economic activity had turned sluggish, but IMF. Even after these very large repayat the same time the U.K. authorities were ments, British official reserves rose during faced with sharply rising wages and prices. the first quarter by $190 milUon, excluding To counter the inflationary pressures, the the $299 million allocation of SDR's and authorities had been maintaining a firm grip $500 million that was transferred into later on domestic monetary conditions, and Britmonths through special arrangements. ish interest rates moved up in early 1971. At the same time, interest rates elsewhere On March 30, the British Government were declining, particularly in the United presented to Parliament a moderately ex- States and in the Euro-dollar market. pansionary budget, which was generally well By late 1970 Euro-dollar rates already received in the market. The fiscal measures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 795 were to be accompanied by a small relaxa- nounced that the United Kingdom would retion of the ceilings on bank credit expansion. pay the remaining $614 million owed to the Subsequently, on April 1, the Bank of Eng- IMF under the June 1968 drawing. The reland cut its discount rate from 7 per cent payment was carried out on August 9, conto 6 per cent. The Bank noted that the move currently with a large French repayment to was intended to bring British domestic yields the Fund. This left outstanding only the $1 into closer harmony with rates abroad billion drawn by the United Kingdom under (which had fallen substantially since the the 1969 standby arrangement with the beginning of the year). British interest rates IMF. immediately came down and, with Euro- Trading in sterling remained orderly in dollar rates simultaneously firming, the gap July, but in the first days of August the between domestic and international rates pound was caught up in the general wave of was sharply reduced. The subsequent easing speculative demand that hit all major forin the spot sterling rate was only short-lived, eign currencies. With the sterling rate however, as demand arising from oil royalty pressed against its upper limit, the Bank of and tax payments soon pushed the rate to England had to absorb large amounts of the ceiling again. dollars from the market. To provide cover Meanwhile, the U.K. current-account po- for this inflow, on August 13 the Federal sition was improving strongly, from the Reserve activated the swap line with the strike-reduced $82 million surplus of the first Bank of England, drawing $750 million quarter to a record of $792 million for the equivalent of sterling. second quarter. Although this swing re- On the Monday following President Nixflected in part a distortion of the trade figures on's statement of August 15, the British as a result of strikes, such deferred commer- authorities closed their market by prohibitcial demand for pounds kept sterling buoy- ing their banks from dealing in foreign exant at a time when it usually begins to ease change, and the prohibition was extended with the passing of favorable seasonal fac- each day of that week. As an interim meastors. Fluctuations in the sterling rate during ure, however, the Bank of England allowed that period mainly reflected the changing banks to lend foreign currencies to resirelationship between domestic interest rates dents for payment to nonresidents. Durand rates in the Euro-dollar market. With ing that week trading in sterling was very interest rates holding fairly steady in Lon- thin in New York and on the Continent, with don, the tightening of the Euro-dollar wide swings in quotations. On Monday, Aumarket late in May exerted some downward gust 23, the London market was reopened pressure on the pound, but when Euro- on the basis of the $2.42 upper limit being dollar rates moved lower in June sterling suspended temporarily, while the parity of came into demand again. the pound and the lower limit remained un- During the second quarter, British re- changed. On subsequent days, with trading serves posted a further gain of $303 million, gradually recovering, the sterling rate moved while $1.2 billion was shifted into later to as high as $2.4830 on August 26, a premonths again through special arrangements. mium of 2.5 per cent over the ceiling, before These gains, and the continued strength of backing off. sterling, enabled the United Kingdom to Following the floating of the Japanese make a further paydown on its IMF obliga- yen, the British authorities feared a renewed tions. On July 19, Chancellor Barber an- speculative influx into sterling. Conse- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
796 FEDERAL RESERVE BULLETIN • OCTOBER 1971 quently, the Bank of England announced on The upswing in the sterling rate continued August 27 new measures to deter hot money into early October, when in active trading, inflows. These included a prohibition of in- the spot rate rose above $2.49, to a 3 per terest payments by banks in the United King- cent premium over the previous ceiling. On dom on increases in sterling balances held October 6, the British authorities announced by non-sterling-area depositors, and a com- a further tightening of the exchange controls plete ban on additional nonresident deposits introduced at the end of August. The earlier with other financial institutions and local ban on additions to the holdings by nonauthorities. Nonresidents were also pro- sterUng-area residents of specified securities hibited from purchasing additional sterling was extended to all such securities, irrespeccertificates of deposit as well as Government, tive of maturity, as well as to sterling accep- Government-guaranteed, and local authority tances, commercial bills, and promissory securities maturing before October 1, 1976. notes. After a brief dip in response to these Finally, permission for the banks to swap steps, sterling moved back close to the $2.49 foreign currency deposits into sterling for level. lending to residents was withdrawn. The SWISS FRANC steriing rate fell sharply after that to around $2.45Vi, about 1.5 per cent above the pre- The Swiss franc rate rose steadily in early vious ceiling. On the following Thursday, 1971, as strong domestic credit demand ab- September 2, the Bank of England reduced sorbed bank liquidity while a continuing deits discount rate from 6 per cent to 5 per cline in Euro-dollar rates reduced the incencent. (On the same day, the reserve figures tive to place funds abroad. By late February for the end of August were released, indicat- the franc rate reached the ceiling and the ing a gain of $937 million after the $614 Swiss National Bank had to absorb $150 million repayment to the IMF.) million. To provide cover for this intake, on The bank rate cut was followed by a drop March 1 the Federal Reserve drew an equivin domestic interest rates, but Euro-dollar alent amount of francs under the swap arrates fell even more rapidly. This may have rangement with the Swiss National Bank; contributed to keeping sterling firm, the spot since $300 million drawn under the swap rate fluctuating around $2.46 until mid- line in October 1970 was still outstanding, September. By that time the volume of cur- this brought the System's commitments in rent commercial business had recovered, but Swiss francs to $450 million. This debt was transactions related to capital movements, liquidated in early March through a comin contrast, had practically dried up. With bination of a U.S. Treasury sale of $75 milthe approach of the IMF meetings, however, lion of gold and $250 million of Swiss-francthe sterling rate strengthened and in Septem- denominated securities to the National ber, British official reserves rose by $206 Bank, which also agreed to sell outright miUion. Also during September the British $200 million equivalent of Swiss francs to Treasury announced the renewal for 2 years the Federal Reserve. The System was of the $2 biUion second sterling-balances thereby able to pay off the entire $450 milarrangement of 1968 with the BIS, under lion equivalent of swap drawings outstandwhich the Bank of England can obtain cred- ing. its to offset reductions in the sterling bal- Even after the injection of liquidity reances—both official and private—of ster- sulting from the National Bank's purchase ling-area countries. of dollars in late February, the Swiss franc Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 797 rate remained strong throughout March. franc, to a new par value of $0.2448 the Late in the month, the National Bank helped first change of the franc's external value in the Swiss banks meet their quarter-end needs 35 years. The new intervention limits were by entering into a total of $470 million of formally set at $0.2403% and $0.2493%, swaps and also rediscounting domestic paper or at 1.8 per cent on either side of the new for them. Despite this assistance, however, par. The change in the Swiss franc's parity the spot rate moved to the National Bank's activated the revaluation clauses on all Swiss intervention point by the end of the month. franc-denominated U.S. Treasury securities When the German mark became subject issued to the Swiss National Bank—either in to speculative pressure in the first days of its own name or that of the Swiss Confedera- April, speculative demand developed for the tion—and to the BIS. Consequently, the Na- Swiss franc as well. On April 1 the Swiss tional Bank sold to the U.S. Treasury 4,110 Parliament transferred to the Government million Swiss francs at the franc's old ceiling the authority to change the franc's parity, ($0.23281/4 ) for $956.9 million. The Treaand there were rumors that the Government sury, in turn, redeemed all its Swiss-francwould immediately avail itself of this new denominated securities, and replaced them power by revaluing the franc. As a result, simultaneously with new securities for the the National Bank had to purchase $390 same Swiss franc amounts, selling the franc million, net, in the first half of the month, proceeds to absorb $989.3 milUon from the before tensions moderated somewhat. The National Bank. easing was short-lived, however, as the ex- When the market reopened on May 10, change market atmosphere deteriorated the spot franc traded just below the new sharply late in April when the Swiss franc parity, but there was no reversal of the earwas caught up in the wave of speculation Her large inflows. The exchange markets recentered on the mark. mained very uneasy and, despite extremely Since a large share of Swiss trade is with liquid monetary conditions in Switzerland, Germany, the prospect of a further possible Swiss banks were reluctant to shift funds revaluation of the mark, or of a rising float- into the Euro-dollar market. In view of the ing rate, led many traders to expect that the potentially wide swings of the spot rate, un- Swiss Government, already struggling with covered placements were risky, while forinflation, would follow a German move. ward cover was not available in large With the spot franc driven to the ceiling in amounts at attractive rates. Under these conearly May, the National Bank's dollar pur- ditions, the National Bank sought means of chases mounted rapidly. On the morning of exerting a calming influence on the market May 5 the National Bank took in $600 mil- and of absorbing excess Swiss franc Uquid- Uon and, when the German Federal Bank ity. suspended its operations, the Swiss authori- As a first step, an arrangement was ties immediately did the same. Later that worked out between the National Bank and day, in New York, the spot franc rose in the Federal Reserve, using the BIS as interheavy trading to around $0.2400 and fluctu- mediary. On May 17, the National Bank ated widely over the following 2 days, as the sold $250 million to its commercial banks market awaited the decisions that might on a 3-month swap basis, on the understandemerge over the weekend. ing that the banks would deposit these funds On Sunday, May 9, the Swiss authorities with the BIS which, in turn, would invest announced a 7.07 per cent revaluation of the them in certificates of deposit (CD's) of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
798 FEDERAL RESERVE BULLETIN • OCTOBER 1971 U.S. banks, thereby avoiding an increase in mosphere in July. Over-all, in the 2 months the supply of Euro-dollars. Cover for this that followed its revaluation, the Swiss franc operation was provided by means of a Fed- had been little affected by the various specueral Reserve swap drawing of $250 million lative forays in other exchange markets, but equivalent on the line with the Swiss Na- this relative quiet was broken in early Autional Bank. (The National Bank was not gust. With other major continental currenauthorized at that time to undertake forward cies partly insulated by either exchange conmarket operations on its own account; a bill trols or floating rates, the Swiss franc began authorizing it to do so had been proposed to to bear the brunt of the speculative attack Parliament and was subsequently passed in against the dollar. On August 4, after the late June.) French authorities moved to halt inflows to Late in May, the National Bank gave as- their country, demand for Swiss francs surance to the banks that it would maintain surged and the rate moved quickly from par an effective ceiling for the Swiss franc of to the level at which the Swiss National $0.2463 and a floor of $0.2433 (0.6 per Bank was prepared to buy dollars. Demand cent above and below par, respectively). swelled further on the following day, and With their potential spot exchange risks the National Bank took in a total of more thus reduced, the banks began to purchase than $400 million. Meanwhile, however, the substantial amounts of dollars from the cen- National Bank had negotiated an agreement tral bank. Moreover, with Euro-dollar yields with the Swiss banks under which, in the rising sharply toward the month-end, addi- event of massive speculative inflows, it could tional funds flowed out of Switzerland, and prohibit the payment of interest on addithe franc rate dropped sharply until it almost tional short-term deposits in francs by nonreached the informal lower intervention level residents and require the banks to hold up on June 1. to 100 per cent reserves against such funds; On June 2, however, after the German this arrangement was to go into effect on Federal Bank offered to sell dollars at a August 20. rate well above the previous mark ceiling, On Monday, August 9, the National Bank the Swiss franc rebounded along with other announced that the franc proceeds of any European currencies and held close to par further dollar sales to it would be placed in until mid-June. Then, as some covering of blocked accounts for 10 days—that is, until short dollar positions developed, an easier the agreement with the banks to sterilize tone set in and the spot rate decUned mark- inflows would be implemented—^but the edly. (Following its normal practice, the Swiss authorities were faced with further National Bank provided swaps to assist the massive offers of dollars on every day that banks over the midyear statement period, week, during which they absorbed a furthe total in June reaching $607 million.) ther $1.7 billion. In response to the National Nevertheless, the rate did not reach the point Bank's request to cover these inflows, the at which the National Bank had indicated it Federal Reserve drew the remaining $350 would sell dollars. During that month, and million equivalent available under the $600 again in July, in two transactions of $50 milUon swap line with the National Bank million each the U.S. Treasury sold gold to and, after that facility had been enlarged to the National Bank to absorb some of the $1 bilUon on August 12, drew in full the dollars the Bank had purchased in May. additional $400 miUion of Swiss francs thus There was little change in the market at- provided. Furthermore, the System drew the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 799 entire $600 million equivalent available actions far below normal. Speculative flows under the Swiss franc/dollar swap line with especially were sharply curtailed by the Nathe BIS. These drawings raised System com- tional Bank's regulations. In addition, with mitments in Swiss francs to a total of $1.6 the rise in Euro-dollar rates and the downbillion. Finally, to absorb the National ward drift of the German mark, the spot Bank's intake of August 13, the Treasury franc backed away sharply, reaching by Sepissued to it a $333 million Swiss-franc- tember 1 the $0.2500 level. On September 8 denominated note. the Swiss Government asked Parliament for After the U.S. measures of August 15, the emergency authority to take various addi- Swiss National Bank suspended its exchange tional measures to defend the franc if this operations during the week of August 16- should again become necessary, including 20, although commercial banks carried on the power to impose negative interest rates limited dealings among themselves for im- on hot money inflows and to declare the mediate needs. When the other European present voluntary agreement with the large markets were opened on August 23, the banks to be legally binding on all Swiss Swiss National Bank kept its market offici- banks. The franc rate firmed in mid-Septemally closed; this left the Swiss franc effec- ber, but trading remained generally quiet tively floating, since the commercial banks through early October. remained free to trade in foreign currencies. In the general uncertainty and nervousness DUTCH GUILDER that prevailed in the markets, the franc rate In 1970 the Dutch economy continued to rose sharply to 3 per cent over the previous suffer from inflationary wage and price informal ceiling by August 26. That day the trends, leading to a deterioration in the cur- National Bank announced it had reached an rent account of the balance of payments. As agreement with the three large Swiss banks in other European countries, the Dutch to discourage speculative inflows. Under the authorities had relied heavily on monetary terms of this agreement, the banks would policy to curb excess domestic demand. buy a daily maximum of $2 million from While credit conditions were thus kept tight any one customer when the spot rate was in the Netherlands, interest rates in the between $0.2525Vi and $0.25315/8 and $1 Euro-dollar market were declining. On sevmillion at rates of $0.2531% or higher. The eral occasions during the autumn and winter franc proceeds of any sale in excess of these months, the short-term uncovered interestamounts would be blocked in non-interest- arbitrage comparison shifted in favor of bearing accounts for 3 months. guilder placements. Moreover, in the second The following day the National Bank half of 1970, heavy foreign demand had reached an agreement with the Swiss Bank- developed for guilder-denominated bond ers' Association to extend the interest pay- issues being floated in the Dutch and interment ban on foreign funds that had flowed national capital markets. Therefore, even into Switzerland since July 31 to all franc though the Dutch current account was movplacements; originally, the ban had applied ing into deeper deficit, a massive inflow of only to funds with a maturity of less than both short- and long-term capital held the 6 months. These and earlier restrictions on spot guilder rate at or near its ceiling through dealing in francs, along with the uncertain- most of the second half of 1970, and Dutch ties generated by an effectively floating rate, official reserves grew by $551 million in kept both the size and the number of trans- that period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
800 FEDERAL RESERVE BULLETIN • OCTOBER 1971 As was related in the preceding report, its swap line with the Netherlands Bank, the Federal Reserve provided cover for the drawing $130 million of guilders to provide central bank's dollar intake by drawing, dur- cover both for the dollars bought from the ing the second half of 1970, the full $300 Bank of England and for $20 million of balmiUion equivalent available under the swap ances that were in excess of the Netherlands faciUty with the Netherlands Bank. In view Bank's usual level of uncovered holdings. of the sustained strength of the guilder dur- In early April, when bidding for German ing the course of the first quarter of 1971, marks surged, with strong speculative overthis $300 milUon of Federal Reserve debt— tones, the guilder also came into demand. plus another $25 million of surplus dollars The spot guilder returned to the ceiling, and on the books of the Netherlands Bank—^was the Netherlands Bank was obliged to interfully liquidated in a series of special trans- vene. The Federal Reserve covered the inactions involving (1) a Federal Reserve take through an additional swap drawing of sale of $75 million equivalent of German $40 million equivalent. In order to reduce mark balances to the Netherlands Bank, (2) the incentive for further inflows, effective a U.S. Treasury sale of $25 million of gold April 5 the Netherlands Bank lowered its and $100 million of SDR's to the Dutch discount rate from 6 per cent to 5V2 per authorities, and (3) a U.S. drawing of $125 cent. With the Amsterdam money market million equivalent of guilders from the IMF. highly liquid following the earlier influx, the Early in 1971, liquidity in the Dutch spot guilder moved away from its $0.2783 Vi market remained tight, contrary to the usual ceiling and traded at lower levels for a few seasonal easing, and the spot guilder rate weeks. This liquidity began to be reabheld close to the ceiling. Under these cirsorbed, however, when Dutch banks had to cumstances the Netherlands Bank initiated pay guilders over to the central bank at the a new series of swaps with Dutch commermaturity of the swaps entered into early in cial banks, offering to buy dollars spot the year; although the guilder exchange rate against sale for deUvery in 3 months' time firmed as a result, the central bank did not at rates favorable to the banks. These market have to purchase dollars outright. swap transactions were continued into early In the last days of April, however, the March and amounted to some $380 million. guilder was caught up in the spreading spec- At that point the Amsterdam money market ulative demand for European currencies. turned more liquid and, with Dutch interest The spot guilder rose to the ceiling, and on rates faUing sharply in mid-March while May 3 and 4 the Netherlands Bank absorbed Euro-dollar rates stabilized, the uncovered dollars on a rapidly rising scale. These were arbitrage incentives shifted substantially covered by a Federal Reserve drawing of against guilder placements, leading to a $80 million, which brought System swap softening of the spot rate. commitments to the Netherlands Bank up Even though the Netherlands Bank was to $250 milUon. In the heavy trading of the thus able to avoid intervening in the spot morning of May 5, the Netherlands Bank market for a considerable period of time, it purchased $240 million before halting acquired a substantial amount of dollars on market intervention. Formal trading re- March 31 when, in connection with the mained suspended in the Netherlands for the United Kingdom's repayment to the IMF, remainder of the week, while in New York the Bank of England purchased $110 mil- the guilder floated to a slight premium over lion of guilders from the Dutch authorities. its ceiling. At that time, the Federal Reserve reactivated On Sunday, May 9, the Dutch Govern- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 801 ment, following a similar move by Germany, of the exchange market, however, and the announced that the Netherlands Bank was guilder rate thereafter fell back even though temporarily withdrawing its buying and sell- the mark moved progressively higher. After ing rates for the dollar, effectively allowing further fluctuations, the guilder rate settled the guilder to float. Simultaneously with at around 0.7 per cent above the former the Dutch Government's decision to float the ceiUng from mid-June through early July. guilder, the Netherlands Bank, in accord- By that time the Netherlands Bank still ance with understandings governing the held nearly $250 million of surplus dollars, swap arrangement with the Federal Reserve, most of which had been purchased on May sold sufficient guilders to the System to 5. In order to absorb part of these dollars, enable it to liquidate the $250 million the U.S. Treasury sold to the Dutch authoriequivalent of swap commitments. This re- ties $100 million of SDR's on July 16, and payment procedure added to the uncovered it absorbed a further $150 million in condollars on the books of the Netherlands nection with a larger drawing of guilders Bank, and the U.S. Treasury subsequently from the Fund on August 9. On that day, absorbed the dollars through a $150 million the British and French repayments to the sale of SDR's on May 21 and a drawing of IMF included a large allotment of Dutch $100 million equivalent of guilders from guilders, amounting to $297 million equivthe IMF on June 21. alent, which would be purchased from the When the Dutch exchange market re- Netherlands Bank and would result in a opened on May 10, the guilder began trad- further increase in the bank's dollar reserves. ing at a premium of 1.8 per cent over the Consequently, the Treasury agreed to draw previous ceiling but, even though the Am- a total of $447 million equivalent of guilders sterdam money market was extremely liquid, from the Fund. virtually no unwinding of speculative posi- In July and early August, with the gentions took place. In the next few weeks the eral deepening of uncertainties in the exguilder moved in sympathy with the German changes, the guilder rate began to rise again, mark, although at much smaller premiums, reaching 4.3 per cent over the previous ceilfluctuating in the New York market between ing on August 13. In the week of August 1.0 per cent and 2.0 per cent over its previ- 16-20, the Dutch exchange market was ous ceiling. Late in May, with the Dutch closed, and Dutch and foreign banks dealt money market remaining easy and Euro- guilders only in limited amounts to meet dollar rates rising sharply, the guilder rate customers' immediate needs. In New York, eased back toward its previous ceiling. At the rate touched $0.2950, 5.3 per cent over that time the major Dutch banks agreed to the ceiling at one point. The Dutch authoricease paying interest on nonresident demand ties continued to permit the guilder rate to deposits, and on June 1 the Dutch authori- float when the Amsterdam market reopened ties moved further to discourage inflows of on August 23, but, under an agreement beforeign short-term funds by barring nontween the Netherlands and Belgium, the residents from purchasing Dutch Treasury central banks of the two countries stood paper and guilder-denominated bankers' ready to intervene in order to maintain the acceptances. cross rates between their currencies within When the German Federal Bank entered the limits of 1.5 per cent on either side of its market as a seller of dollars early in the official parities. By early September, the June, the guilder strengthened in sympathy guilder rate was holding at just over $0.2900 with the sharp upward reaction of the mark —some 4.2 per cent above the former ceilrate. The Netherlands Bank remained out ing—while, operating under the new agree- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
802 FEDERAL RESERVE BULLETIN • OCTOBER 1971 ment providing for the linking of the Bene- the Federal Reserve covered these gains by lux currencies, the Netherlands Bank drawings on the swap arrangement. As supported the cross rate by buying Belgian noted in previous reports, the System had francs. initiated drawings on the Belgian franc line In September the Dutch authorities took in June 1970, and at the year-end such additional steps to discourage capital in- drawings stood at $210 million. After rising flows. Effective September 6, a so-called to $355 million by January 27, the System's "closed circuit for bonds" was introduced swap debt was reduced to $230 million on whereby purchases by nonresidents of January 29, through use of $125 million guilder-denominated bonds can be effected equivalent of Belgian francs drawn by the from residents only with guilders obtained U.S. Treasury from the IMF. By early through the sale of such bonds by nonresi- March, however, the System's swap comdents to residents. Effective September 15, mitments had risen to $420 million equivthe Netherlands Bank lowered its discount alent. rate by V2 percentage point, to 5 per cent, By that time, however, the value-added explaining that the reduction had been made tax, introduced in Belgium at the beginning in support of the measures directed at coun- of the year, started to have its expected tering foreign capital inflows. The spot effects on Belgian trade. Prior to the tax, guilder rate nevertheless rose strongly in the importers had run down their inventories second half of September, moving up along and now they were rebuilding them, with with most other European currencies, and the result that the trade account had swung it held around $0.2975, almost 7 per cent into deficit in February. Moreover, the large over the former ceiling, through early injections of liquidity resulting from capital October. inflows had eased domestic money market conditions and, with Euro-dollar rates bot- BELGIAN FRANC toming out in mid-March, demand for Belgian francs eased somewhat. On March 24, Through most of 1970, the Belgian franc the National Bank of Belgium moved to had been bolstered by a growing payments limit future inflows of funds—and their surplus on current account and by an influx effects on domestic credit expansion—by of short-term funds. The Belgian authorities, reducing its discount rate V2 percentage struggling to contain inflation, kept interest point to 6 per cent, by asking the banks to rates firm in the face of declining rates exercise restraint in enlarging their net exabroad. Late in the year, however, the Naternal liability positions, and by extending tional Bank cut its discount rate twice, but through September its quantitative restricin early 1971 the renewed decline of Eurotions on the expansion of short-term bank dollar rates again opened wide interest credit. differentials in favor of Belgium. The Belgian authorities then moved to absorb, Late in March, however, the Belgian mainly through domestic borrowings by the franc was caught up in the general specula- Belgian Treasury, some of the domestic tion in European currencies, and the Naliquidity that was being created by the capi- tional Bank again began to absorb dollars tal inflows, and took the opportunity to from the market. On April 7 the Federal further reduce Belgium's official borrowings Reserve drew an additional $30 million in foreign currencies. The National Bank's equivalent on its swap line with the National dollar reserve gains continued, however, and Bank to cover part of the inflow, thereby Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 803 increasing total drawings to $450 million. (1) the U.S. Treasury sold $55 million of In addition, the National Bank acquired $50 SDR's and $85 million of gold to the Namillion through a sale of Belgian francs to tional Bank of Belguim; (2) the Treasury the Bank of England, which needed the established and drew in full a special $100 francs in connection with a debt repayment million swap facility with the National Bank; to the IMF on March 31. The U.S. Treasury (3) the Federal Reserve made two swap absorbed these dollars by selling $25 million repayments and one new drawing which of SDK's and $25 million of gold to the resulted in a $10 million net increase in National Bank. drawings outstanding. Then at the end of Exchange market uncertainties led to new the month, when there was a further inflow inflows in the latter part of April and in of funds to Belgium, the System made an early May. The underlying situation had additional drawing of $30 million, bringing not changed—Belgian trade was still in total swap commitments outstanding under deficit on a customs basis—^but leads and the Federal Reserve line to $490 million lags built up in favor of the franc, holding equivalent. the official rate at the National Bank's inter- Market expectations of a revaluation of vention point and adding to official reserve the Belgian franc were on the wane at the gains. The pressures came to a head on end of May. Moreover, ample liquidity Wednesday, May 5, when the National Bank conditions in Brussels began to exert a drag took in $100 million before joining several on the franc rate and, as Euro-dollar rates other continental European central banks in rose, very large uncovered differentials suspending trading. The Brussels market opened up over Belgian money market rates. remained closed until the following Tuesday Then, on June 3 the National Bank rewhen the Belgian authorities announced quested that any increase in the Belgian modifications in the two-market exchange commercial banks' net external liability posisystem for the franc, resulting in a complete tions above the levels prevailing at the end separation of commercial and financial of May be matched by non-interest-bearing transactions. The National Bank would Belgian franc deposits with it. The Belgian maintain the existing official intervention banks accordingly began to shift funds levels for commercial transactions, but all abroad as offsets to their liabilities. In the capital flows, whether inward or outward, official market the spot franc rate dropped as well as private transfers and tourist trans- to par by June 17, at which point the Naactions were to pass through the financial tional Bank intervened in the market with franc market, which would not be sup- a small sale of dollars to halt the decline. ported. (Previously, capital imports could The financial franc, which had commanded be converted through either the official or a premium of roughly 1 per cent over the the financial franc markets, although capital official franc ceiling in mid-May, fell even exports by residents were permitted to move further until it was trading at par with, and only through the latter.) at times below, the official franc rate. Meanwhile, there was the question of The Belgian franc rate stayed below the dealing with the reserve gains of the Na- ceiUng through early July. Trading was very tional Bank in late April and early May, thin, however, and did not provide an opwhich amounted to more than $250 million. portunity for a reduction in the Federal This was accomplished through a series of Reserve's swap drawings. In order to enable transactions between May 10 and May 24: the Federal Reserve to liquidate some of its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
804 FEDERAL RESERVE BULLETIN • OCTOBER 1971 commitments, the U.S. Treasury acquired Following President Nixon's speech on on June 21, in a multicurrency drawing August 15 the Belgian authorities closed from the IMF, $150 million of Belgian their exchange market, and it remained francs; these francs were used to reduce closed for the following week. After the System swap drawings on the National Bank EEC decision to open markets again on to $340 milUon equivalent. August 23, the Belgian Government decided The wave of speculation that hit the ex- to allow the official franc as well as the changes later in July and continued into financial franc to float. Once the market the first half of August spilled over into the opened, the rates in the two tiers tended to Belgian franc market and, with the franc come together for an effective appreciation rate pushed back to the ceiUng, the National above the former official ceiling of a little Bank of Belgium was obliged to absorb more than 2.5 per cent. In addition, Belgium nearly $350 million. Moveover, on August entered into an agreement with the Nether- 9, the British and French repayments to the lands to limit the variation in the cross rate IMF included a large allotment of Belgian between the Belgian franc and the guilder francs, amounting to $315 million equiva- to 1.5 per cent on either side of their official lent. Since the francs would be purchased parities. from the National Bank, thereby increasing Trading in the Belgian franc turned the bank's dollar reserves, the Treasury quieter during the remainder of August and agreed to absorb the dollars by a simul- through mid-September. In view of the taneous drawing on the Fund. The Treasury changed conditions since the floating of the also agreed to repay at the same time the Belgian franc, the National Bank suspended $100 million equivalent drawn in May on September 15 its request of last June under its special swap line with the National that any increase in the Belgian commercial Bank, using additional francs drawn from banks' net external liabiUty positions be the IMF, so that the total Fund drawing matched by non-interest-bearing Belgian amounted to $415 million. To cover the franc deposits with it, and the funds that had National Bank's large dollar intake from the been blocked under that measure were remarket, the System drew $65 milUon on turned to the banks. Similarly, the earlier the swap line in late July and a total of $95 request, made in March, that the banks miUion in early August, thereby exhausting exercise restraint in their foreign borrowing the $500 million line with the National was also suspended. A few days later, the Bank. On August 12 the facility was en- National Bank announced that the quantitalarged to $600 miUion, and the additional tive restrictions on the expansion of short- $100 million of Belgian francs that thus term bank credit, which in March had been became available was drawn in full. Finally extended through the end of September, to cover the dollar gains of the National would be allowed to expire at that time since Bank on August 13, the Treasury sold $50 the risk of inflationary excess demand for million of SDK's and the Federal Reserve goods and services had been sharply redrew $35 million of Belgian francs from the duced. Finally, the National Bank lowered BIS, under the $1 billion reciprocal line its discount rate from 6 per cent to SVi which provides for swaps against certain per cent, effective September 23. European currencies other than Swiss In the latter part of September the franc francs. This drawing brought the Federal rate advanced to a premium of around 6 per Reserve's swap commitments in Belgian cent over the former ceiling, largely in refrancs to $635 million equivalent. sponse to the general bidding-up of Euro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 805 pean currency rates as a hedge against a absorb dollars in mounting volume. Neverpossible realignment of currency values theless, the rush into francs was not overduring the IMF annual meeting, and re- whelming, mainly reflecting leads and lags, mained firm in early October. On October and the Bank of France did not withdraw 12, the Federal Reserve reduced its swap from the exchange market on May 5 when indebtedness to the National Bank by $35 several other continental European central million, to $565 million equivalent, using banks suspended intervention in their marfrancs purchased in the market. kets. On subsequent days the flows halted and, FRENCH FRANC as Euro-dollar rates rose sharply, some reflux of funds developed. With francs now The French balance of payments on a cash offered on the market, the spot franc basis had been in sizable surplus in 1970, on dropped away from the ceiling. On May 10, both current and capital accounts, and conon the basis of the large reserve gains since tinued strong as 1971 began. Although the the preceding fall, France made a further repatriation of French funds from abroad repayment to the IMF against earlier drawhad tapered off over the course of last year, ings. The repayment amounted to $375 additional inflows had developed in response million (with a substantial portion, $282 to favorable interest-arbitrage incentives. million, required in gold which was pur- The French authorities had moved cauchased from the U.S. Treasury), and tiously to ease monetary policy, but with France's indebtedness to the Fund was Euro-dollar rates falling sharply, wide difthereby reduced to a httle over $600 miUion. ferentials opened on several occasions in During May, the French authorities took favor of franc placements over Euro-dollars. a series of steps to ward off renewed specula- In late 1970 and early 1971 the Bank of tion in the franc and to absorb excess domes- France repeatedly reduced its domestic intic liquidity created by earlier inflows. On tervention rates to narrow the interest- two occasions, the Bank of France raised arbitrage spreads. Even so, the combination its reserve requirements for French banks. of the strong underlying payments position Moreover, the National Credit Council and the continuing inflows led to fairly per- authorized the Bank of France to raise sistent demand for French francs in the reserve requirements on nonresidents' deexchanges in the early months of 1971. The posits to 100 per cent, if this became necesfranc rate fluctuated in a narrow range near sary, and warned that it had the power to its upper limit throughout the first quarter, prohibit or limit the payment of interest during which French reserves rose by $369 on such deposits. These moves, along with million, excluding the allocation of SDK's. the clearly stated intention of the French An easier tone developed for the franc in authorities not to revalue the franc or allow early April, as the French authorities al- it to float, prevented speculative pressures lowed the rise in Euro-dollar rates to reduce from developing at that time. Consequently, the arbitrage incentives in favor of franc with arbitrage incentives still well in favor placements. Toward the end of April, how- of Euro-dollars, the Bank of France raised ever, the usual month-end demand for francs its own rates on discounts and secured adwas augmented by hot money inflows, re- vances by Vk percentage point to 6% per flecting mounting tensions in the exchange cent and W4 per cent per annum, respecmarkets. The spot franc rate was pushed to tively. The French franc nevertheless had a the ceihng and the central bank had to softer tone through the rest of May and into Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
806 FEDERAL RESERVE BULLETIN • OCTOBER 1971 June. For the second quarter as a whole, to increase their net external indebtedness French reserves rose by a further $165 or decrease their net claims vis-a-vis nonmillion. residents from the levels prevailing on In the last days of June and in early July, August 3. In this connection, the banks were there was a dramatic shift in the market expected to refrain from selling francs to atmosphere and the franc came into heavy nonresidents whose motivation for buying demand. At first the pressure reflected the francs appeared to be speculative. With the movement of funds in response to yet an- franc already in strong demand, this meaother reversal of interest differentials in sure was immediately seized upon by the favor of France and to the usual bunching market as evidence of the French authoriof export proceeds around the month-end. ties' unwillingness to accumulate additional Then, after an inconclusive meeting of the dollars, and, in the confusion, quotations for EEC's Finance Ministers on July 1 and 2, francs in markets outside France moved rumors began to circulate in the market that above the official ceiling. the French Government might agree to a On August 5, the Bank of France quickly widening of the trading margins of all EEC moved to clarify the instructions and the currencies against the dollar. For the first market quieted somewhat. At that time the time during the prolonged period of unsettle- banks agreed to stop paying interest on nonment, the speculative focus now shifted to resident deposits of less than 91 days, and the French franc and, as the spot rate was this ban was later made mandatory by the driven to the ceiling, the Bank of France had authorities. Nevertheless, in the general run to absorb dollars from the market on a on the dollar taking place at the time, the large scale. demand for francs was unrelenting, and the To deal with these flows, the Bank of Bank of France continued to take in dollars France lowered its domestic intervention on a daily basis through Friday, August 13. rates considerably—thereby pushing French Following President Nixon's speech, the money market yields well below similar French exchange market was closed for Euro-dollar quotations—and raised its mini- the week of August 16-20. The French mum reserve requirements further. Never- Government reopened the market on Montheless, the strong demand continued day, August 23, on the basis of a two-tier through July, and the Bank of France exchange system. The Bank of France would recorded a reserve gain of $498 million for defend the franc at the prescribed interventhe month. On August 9 France prepayed tion points only in the official market, in full its remaining indebtedness to the through which trade and trade-related IMF, totahng $609 million. In discharging service transactions would be effected. All this obligation, the Bank of France pur- capital transfers, as well as tourist and most chased $191 million of gold from the United other nongovernmental service transactions, States. would henceforth be strictly segregated in In early August the French authorities a financial market where the franc rate took further steps to counteract the domestic would be allowed to find its own level. At effects of the latest inflows and to ward off the same time, measures were taken to prefurther flows. Reserve requirements were vent leads and lags from developing in the again raised, and there was some relaxation future, including a requirement that imof existing exchange controls. In addition, ports (other than equipment goods) be paid on August 4 the banks were instructed not for within 3 months from their entry into Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 807 France, and importers were given 1 month already moved toward a somewhat easier to comply with this new rule. monetary policy in the fall of 1970, took Given the complexity of these exchange advantage of the sustained capital inflow to regulations, trading in the official franc encourage business activity by reducing its market was very limited at first, with wide rate on secured advances in January and its spreads in quotations, but commercial busi- discount rate in early April, both from SVi ness picked up fairly rapidly. Trading was per cent to 5 per cent. Demand for the lire slower to develop in the financial franc remained strong in April, however, and for market, where the rate moved to a 2.5 per the first 4 months of the year as a whole cent premium over that of the official franc. official reserves rose by $794 million, ex- In the wake of the floating of the yen on cluding the new allocation of SDR's. August 27, renewed demand developed for While the lira was also affected by the the official franc—the only major currency growing speculation in European currencies still kept within its prescribed limits—and leading up to the crisis of early May, Italy's the Bank of France again had to absorb continuing domestic difficulties served to dollars. French official reserves rose by dampen the demand for lire, and the pres- $ 1,087 million in August. sures consequently were not as great as in In September, there was some reversal other major currencies. Thus, when several of the previous flows into francs, as the continental European central banks sus- French exchange regulations, which were pended operations on May 5 and some further elaborated, began to bite. In partic- governments subsequently floated or reular, French exporters and importers had valued their currencies, the Italian authorito unwind some of the leads and lags built ties kept the lira market open and rode up prior to mid-August. With the official through the storm. Later in May the Italian franc rate dropping below the ceiling, the lira rate began to ease, as Euro-dollar rates Bank of France sold substantial amounts rose relative to domestic interest rates. With of dollars over the course of the month, and labor unrest mounting anew and provincial reserves declined by $333 million for Sep- elections adding new uncertainties, the lira tember as a whole. The financial franc rate, fell to around par in early June. The lira developed a better tone toward the end of which had reached a premium of 4.0 per June, however, and held above par through cent over the official rate, gradually eased off July. Nevertheless, even though the currentto a premium of 2.1 per cent in early account trend in the balance of payments October. was improving, Italian reserves declined on balance by $103 million in the May-July ITALIAN LIRA period. The lira continued its recovery through the Early in August, the lira was caught up in first months of 1971, drawing its strength the mounting speculation against the dollar; from large capital inflows, including sizable the spot rate rose to the ceiling on August Euro-dollar borrowings by Italian corpora- 9, and the Italian authorities had to intertions and official entities. Labor unrest re- vene on a number of days during that week. mained a major concern in Italy, however, After President Nixon's speech on August and with export production still sluggish the 15, the Italian authorities also kept their current account showed little underlying exchange market closed during the week of improvement. The Bank of Italy, which had August 16-20, while intensive consultations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
808 FEDERAL RESERVE BULLETIN • OCTOBER 1971 took place within the EEC. The lira rate inroads into European markets as well. moved up substantially in New York, but Japan's over-all balance of payments surplus trading was extremely thin and the range amounted to $1.4 billion in 1970 and would between bid and offered rates was very wide. have been even larger except for efforts by When Italy reopened its exchange market on the Japanese authorities to trim the total. August 23, the authorities announced that In 1970, along with some easing of trade they would no longer intervene at the official restrictions and capital controls, the authori- Umits, although they might enter the market ties had encouraged Japanese banks and at other rates if this seemed advisable. De- trading companies to shift away from dollar mand for lire was quite strong at first as the financing to yen financing of imports. One tourist season was in full swing, receipts had technique employed by the authorities was to been backed up during the week of August make special credit facilities available to 16-20, and leads and lags had shifted in Japanese banks under terms which enabled Italy's favor. The lira rate held at a premium the banks to offer yen financing at preferof roughly 1.5 percentage points over the ential rates. Moreover, the Japanese Govofficial ceiling, before settling back some- ernment made some $200 million of addiwhat. For the month as a whole, Italian tional funds available to the World Bank reserves rose by $424 million. and other international lending agencies for In mid-September, in view of the high development aid. Even with these efforts, rates prevailing in the Euro-dollar market at however, there was a growing belief in the that time, the ItaUan Electricity Authority markets that the yen was fundamentally (ENEL) decided to prepay in November undervalued. the $300 million Euro-dollar loan it had A slowdown in the rate of growth of the contracted in May 1970. Additional Euro- Japanese economy, which began in middollar loans of minor amounts were also 1970 and became more pronounced in early beginning to be repaid by Italian entities, 1971, came at a time when other industrial which had been very heavy borrowers during countries were struggling with inflationary the preceding year and a half. This imparted pressures and served to aggravate the intera somewhat softer tone to the lira market, national imbalance in the early months of and the rate remained fairly steady even this year. Import growth slowed but exports though other European currencies rose expanded even more rapidly than before. strongly against the dollar later in Sep- On the domestic front the Japanese authoritember. ties turned to more stimulative policies, and the Bank of Japan made a further cut in its lending rates in January. Even so, the JAPANESE YEN decline in Japanese interest rates did not For several years leading up to 1971, Japan match that in the United States and in the had experienced balance of payments sur- Euro-dollar market. Consequently, there pluses on the order of $1 billion to $2 bil- was a risk that the earlier yen shift might be lion, based largely on a growing trade reversed and the Japanese authorities took surplus. Japanese exports had proved to be further measures to preclude this, including increasingly competitive in world markets, a doubling of the availabilities to the Japawith particular success in the United States nese banks to cover 30 per cent of their (exports to this country rose by 20 per cent import credits. The authorities also eased in 1970 alone) but also with significant some of the controls on outflows of funds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 809 and constructed additional barriers against Bank of Japan cut its discount rate by a iniBiows. Demand for yen remained strong, further V4 percentage point to per cent. however, and Japanese reserves rose by Japanese official reserves nevertheless rose $931 million in the first quarter, not count- by another $328 million in July. ing the allocation of SDR's. The worldwide speculation against the With market expectations of a possible dollar building up in late July and early yen revaluation already strong, the Japanese August led to even greater demand pressures currency was also caught up in the wave of on the yen than before. Even though the speculation that hit the European markets Bank of Japan was holding the yen rate at in late April and early May. Leads and lags its upper limit by absorbing dollars daily, the resulted in a large influx of funds to Japan; exchange control apparatus left much of the in particular, there were sizable yen prepay- demand for yen unsatisfied, and the apparaments for ships under construction in Japa- tus itself was subjected to great strain. nese yards. The Japanese authorities kept Because of the time difference, when Presithe market open, however, and moved to dent Nixon announced the U.S. measures deal with the problem by tightening their on Sunday night, August 15, it was already exchange regulations and reducing domestic Monday morning in Tokyo and the market interest rates further. (Effective May 8, the was open for trading. The Japanese authori- Bank of Japan lowered its rates on discounts ties nevertheless kept the market open the and secured advances by Vk percentage remainder of that day and through the rest point to 5V2 per cent and 5% per cent, of the week as well. respectively.) With demand for yen con- With dealers all around the world now tinuing strong in both the spot and forward convinced more than ever that a revaluation markets, amounts actually transacted were of the yen was imminent, the Bank of Japan constrained by Japan's exchange control had to absorb dollars on a massive scale mechanism. Under the circumstances, it be- over the following days, despite reinforcecame difficult for Japanese exporters, whose ment of exchange control policies. Japanese receipts were almost entirely denominated banks, in particular, liquidated their long in dollars, to obtain forward cover. In June, positions in dollars by converting into yen the authorities moved to alleviate this short- the dollars they were borrowing from every age of cover, again through the technique of possible source in the United States as well placing dollars at the disposal of the foreign as from the Euro-dollar market. Finally, exchange banks, in two allotments totaling after further very large exchange gains on $500 million. Despite the efforts of the August 26 and 27, the Japanese authorities Japanese authorities to curb the demand for decided to "suspend temporarily the existyen, official reserves rose by $1,902 million ing fluctuation margin for buying and selling in the second quarter. As in the year before, quotations of foreign exchange, while mainthe Japanese Government made additional taining the present parity of the yen." The funds available to the World Bank, amount- vast inflow during August was reflected in a ing to $200 million in the first half of 1971. $4.4 billion gain in official reserves for the The demand pressure for yen continued month as a whole. unrelenting in July, and on July 22 the In Tokyo on August 28 the spot yen im- Ministry of Finance made a further deposit mediately rose to a premium of 4.7 per cent of some $300 million with the Japanese over the ceiling. The rate pushed gradually banks. Moreover, effective July 28, the higher through September, despite substan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
810 FEDERAL RESERVE BULLETIN • OCTOBER 1971 tial further purchases of dollars by the Japa- advance much higher. Among other meanese authorities and some additional tight- sures, the Bank of Canada cut its discount ening of exchange control measures. With rate in February, and by mid-March Canathe tightening of the controls, Japanese dian interest rates had moved below correbanks found themselves unable to accept sponding rates in the United States, which yen payments into the so-called free-yen were beginning to turn around. At the same accounts of foreign banks on their books time Euro-dollar rates also leveled off and, and, in some cases, reportedly felt it neces- although the Canadian dollar continued to sary to convert balances in such accounts fluctuate above $0.99, the market seemed to into dollars. This meant that the foreign move into better balance. banks in many cases were involuntarily The Canadian dollar was little affected by short of yen and were unable to meet their the turmoil in the continental exchanges in commitments to customers on maturing for- late April and early May. The market was ward contracts or to guarantee delivery on active, but no cumulative rise in the Cananew spot transactions. With this failure in dian dollar rate developed. Instead, the the payments mechanism, trading in Japa- subsequent rise in Euro-dollar and U.S. innese yen dropped to nominal levels in New terest rates in May further widened the York, and in early September the yen was arbitrage incentives against placements in suspended from official trading in Frankfurt, Canadian instruments, and the Canadian Germany. The Japanese authorities subse- dollar rate drifted downward. Moreover, quently eased their restrictions slightly, but continued large wage settlements in Canada some payments problems persisted through had already raised fears of a revival of in- September. By early October, the yen rate flationary pressures, and there were market had risen to a premium of almost 8 p^ cent rumors that an expansionary budget would over the previous ceiling. be presented in mid-June. Indeed, when the rate dropped below the $0.99 level at the CANADIAN DOLLAR end of May, commercial firms and banks began to reduce their long Canadian dollar The Canadian dollar continued strong early positions, or even in some cases to go short, in 1971, largely on the basis of a still buoyand these sales of Canadian dollars added to ant trade surplus and substantial long-term the downward momentum of the rate. capital inflows. Furthermore, with the fall By June 10 the spot rate had fallen below of interest rates in the United States, un- $0.98 in heavy trading and, less than a week covered arbitrage incentives opened in favor later, it reached $0.9755, the lowest point of Canada, while the decline in Euro-dollar in 8 months. On June 18, Finance Minister rates may have led to some repatriation of Benson presented a moderately expansionprevious outflows to that market from ary budget, which was well received in the Canada. The spot rate—floating since June market. Subsequently, the Canadian dollar 1970—moved above $0.99 in late January, held fairly steady through the end of June and there were widespread expectations in and into July. the market that it might rise above parity In the latter part of July, with the onset with the U.S. dollar. Meanwhile, the Cana- of the period of seasonal strength for dian authorities were in the process of stimu- Canada's balance of payments, the spot rate lating the domestic economy and were began to firm, moving again above $0.98. reluctant to see the Canadian dollar rate Early in August the Canadian dollar began Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 811 to respond to the general turmoil in the less than $8 billion at the close of 1970 and exchange markets and, with heavy advance continued to fall in early 1971. covering by Canadian exporters, the spot Meanwhile, most European countries rate moved close to $0.99 by August 13. were still pursuing policies of monetary On August 16, following announcement of restraint and were reluctant to allow domes- President Nixon's new economic program, tic rates to decline, or at least to fall as the rate rose further, with trading active in swiftly as rates in the United States or in New York as well as in the Canadian ex- the Euro-dollar market. Consequently, wide changes, which stayed open. After surging interest-arbitrage incentives opened in favor to $0.9943 on the morning of August 17, of domestic European markets over both the the rate eased sharply, falling to $0.9850 U.S. money market and the Euro-dollar one week later as the market became in- market, and large amounts of dollars were creasingly concerned over the possibility taken up by European borrowers—^banks that the 10 per cent import surcharge im- and nonbanks—for conversion into local posed by the U.S. Government might cut currencies. German business firms in particdeeply into Canada's exports. In a move ular were heavy borrowers, but there were aimed at softening the blow of the U.S. sizable flows to other countries as well. With import surcharge on domestic business activ- many currencies at or near their upper ity and employment, the Canadian Govern- intervention points, European central banks ment announced on September 7 the estab- were obliged to absorb the dollars offered on lishment of a $80 million (Canadian) fund the exchanges, which added to their interfrom which payments of up to two-thirds of national reserves while simultaneously exthe surcharge would be made to individual panding domestic liquidity and thereby companies meeting certain conditions. Dur- tending to negate their policies of restraint. ing September and early October the rate As described above, several central banks held mainly in a range of $0.98Vi to reduced their discount and lending rates and $0,991/4. tried other techniques either to prevent the inflows by regulation or to absorb the domestic liquidity generated by the inflows. EURO-DOLLAR For their part, the U.S. authorities at- With only brief interruptions. Euro-dollar tempted to moderate the pace of repayment rates declined fairly steadily throughout the by U.S. banks and to prevent these repaysecond half of 1970 and in early 1971. ments from adding further to the reserve Although many factors contributed to this gains of foreign central banks. At the end slide, it reflected mainly the marked easing of November 1970, the Federal Reserve of liquidity conditions and domestic credit raised its marginal reserve requirements demand in the United States. With short- against such borrowings in excess of reserveterm interest rates falling sharply here, U.S. free base levels, thereby inducing the banks banks rapidly repaid Euro-dollar borrowings to take a second look at the possible cost of that they had built up through their branches borrowing should they need to have recourse during the previous period of monetary to the Euro-dollar market in the future. The stringency in this country. Outstanding lia- banks' repayments resumed after the yearbilities of U.S. banks to their foreign end, however, and in January and February branches, which had reached a peak of $15 the Export-Import Bank offered to the forbillion in October 1969, were reduced to eign branches of U.S. banks $1.5 billion of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
812 FEDERAL RESERVE BULLETIN • OCTOBER 1971 special 3-month securities that the banks In late March and early April the flows could count toward maintenance of their out of the Euro-dollar market began increasreserve-free Euro-dollar bases. Thus, while ingly to assume a speculative character. At U.S. banks continued to cut back their that point several foreign central banks cut recourse to Euro-dollar financing—^banks' their discount rates and, with Euro-dollar liabilities to their own foreign branches fell rates on the rise, interest-arbitrage spreads by almost $5 billion in the first quarter to in favor of domestic European markets were just under $3 billion—^the securities issued narrowed or even reversed. Even so, the reduced the amount of funds actually repaid increasing expectation of drastic changes in to the market by about $1.5 billion. currency relationships led to snowballing Euro-dollar rates bottomed out in March. purchases of most European currencies. During that month, U.S. short-term interest Much of this flow reflected leads and lags rates leveled off and then began to rise once or consisted of direct transfers of funds, again. At the same time the considerably particularly out of the United States. But higher yields available in the British and some of these flows were financed by bor- German money markets continued to exert rowing Euro-dollars at short term, with the upward pressure on Euro-dollar rates. Con- dollars sold against other currencies and the sequently, Euro-dollar quotations, which Euro-dollar borrowings subsequently rolled for 3-month deposits reached as low as 5 over as long as the short positions were per cent per annum in early March, began to maintained. turn upward. Rates tended to rise further At the same time, there was a great deal on quarter-end demand, and this strength of discussion of the possibility that individwas maintained into early April as the pace ual governments would place controls on of repayment by U.S. banks began to slow. their own banks' operations in the market. In addition, the U.S. Treasury followed up Rumors also developed that central banks, the Export-Import Bank's earlier borrowings which were reviewing the role of their own by itself issuing $1.5 billion of 3-month placements in the Euro-dollar market, would certificates of indebtedness to the foreign come to an agreement which would have branches of U.S. banks. the effect of pushing up Euro-dollar rates. By this time, however, the growing uncer- Consequently, as currency speculation tainties in the exchanges began to be re- swelled in April and early May, Euro-dollar flected in the Euro-dollar market. In normal rates moved up sharply, with wide day-totimes, the Euro-dollar market serves as an day fluctuations reflecting the volatile moods international intermediary both for deposi- in the exchanges; the 3-month rate climbed tors seeking higher rates of return on their to around IV2 per cent and overnight rates money and for borrowers seeking lower cost at times to 45 per cent or more. Euro-dollar credit than they can obtain at home; such yields receded a bit through mid-May after flows, which depend on the expectation of the speculative onslaught abated but, in the orderly international financial relations, had absence of any significant reversal of specubeen the dominating factor through 1970 lative positions, the rates remained at levels and early 1971. At other times, the Euro- well above those prevailing before the dollar market has served as a staging area run-up. for international currency speculation— By late May, however, there were growing with funds pouring in from currencies that expectations that the Euro-dollar market are expected to fall in value or moving out would tighten further. In part this was based to currencies that are expected to appreciate. on continuing rumors of coordinated central Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
FOREIGN EXCHANGE OPERATIONS 813 bank efforts to raise Euro-dollar rates. At reached a common view of some of the feathe same time, U.S. money market rates tures of the Euro-dollar market, including were rising, and U.S. banks' liabilities to the role of official placements. On June 14, their foreign branches had leveled off at Dr. Jelle Zijlstra, President of the Netherbetween $11/2 billion and $2 billion. (With lands Bank, addressing the annual general the U.S. Treasury beginning to take over meeting of the BIS in his capacity as Presimaturing Export-Import Bank notes, and dent of that institution, said: later renewing its own obligations as well, It is becoming increasingly clear that the Eurothe full $3 billion of official U.S. borrowings currency market needs guidance and supervision. in the Euro-dollar market was still out- The group of Governors meeting regularly in Basle decided to set up a study group under my standing.) The tightening of the Euro-dollar chairmanship to analyze the problem and to work market pushed the 3-month rate briefly to out terms of reference for a standing group which as high as 8 per cent by June 1. On June 2, might suggest policies to be adopted by the Govhowever, the German Federal Bank began ernors. I am confident that the Governors will be able to bring the Euro-currency market into better LIABILITIES OF U.S. BANKS harmony with the proper functioning of the in- TO FOREIGN BRANCHES ternational monetary system. I may say, in fact, BILLIONS OF DOLLARS that we have already decided for the time being not to place additional official funds in the market and even to withdraw funds when such action is 10 prudent in the light of market conditions. The gradual falling back of Euro-dollar LIABILITIES LIABILITIES PLUS rates was halted briefly in the last days of \ \^^$PECTAL SECURITIES June, when the usual midyear squeeze developed. The decline nevertheless resumed through the first half of July, with the 3-month rate dropping below 6V2 per cent. K SPECIAL SECURITIES V yV Meanwhile, the Federal Bank had been selling substantial amounts of dollars virtually daily, often ^n amounts larger than were .J L. 1. 1 1 JL I 1 SEPT. NOV. JAN. MAR. MAY JULY SEPT. being taken in under maturing forward conmmmm^ml^mm 1971 tracts. Late in July and into early August, the Data as of Wednesday of each week. "Special securities" are branch holdings of special Treasury and Export-Import Bank Euro-dollar market was again caught in the securities. backwash of currency speculation as there offering to sell dollars in the exchange was substantial use of the Euro-dollar marmarket. This move provoked a sharp reac- ket to finance conversions into European tion in the Euro-dollar market, and rates currencies or Japanese yen. With little immediately broke downward. Subsequent money coming into the Euro-dollar market, spot sales by the Federal Bank soon ex- rates were bid up strongly and, on August ceeded the amounts being taken in by the 17 (the settlement date for currencies pur- German authorities under maturing forward chased on Friday, August 13), 3-month contracts, thus augmenting the supply of deposits were at 10 per cent per annum, Euro-dollars. By mid-June, the 3-month rate 7-day funds at 20 per cent, and overnight had fallen back to just over 7 per cent per funds reached above 40 per cent at one annum. point. After these heavy commitments were From their discussions, the central banks met. Euro-dollar rates receded somewhat. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
814 FEDERAL RESERVE BULLETIN • OCTOBER 1971 Nevertheless, with the widespread uncer- U.S. banks. By mid-October only some tainties over the ultimate outcome of the $550 million of the Treasury's certificates negotiations to resolve the many issues remained outstanding. Not all of this was raised by the U.S. measures of August 15, returned to the Euro-dollar market, howinvestors were unwilling to make new place- ever, since U.S. banks reabsorbed some of ments in Euro-dollars, and the rates re- the funds by increasing their own liabilities mained several percentage points above to branches from about $1.5 billion in early those on comparable investments in major August to around $2.5 billion by the end financial centers. An acute squeeze devel- of September. Among European borrowers, oped at the month-end, with quotations on the Italian Electricity Authority announced overnight Euro-dollars driven briefly as high in September it would repay $300 million of as 200 per cent. its earlier longer-term borrowings in the With Euro-dollar rates at relatively high Euro-dollar market. Toward the end of levels, there was evidence of further liquida- September, however, the various quartertion of borrowings in the Euro-dollar mar- end pressures subjected the market to a furket. In August the U.S. Treasury began to ther squeeze before rates eased early in repay the $3 billion of special certificates October, when the 3-month rate dipped it had placed with the foreign branches of to around 7 per cent. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Statements to Congress Statement of George W. Mitchell, Member, priced credit—problems such as lack of Board of Governors of the Federal Reserve nonfarm resources and distance from con- System, to the Subcommittee on Rural De- sumer markets. Case studies of rural comvelopment of the Senate Committee on munities have concluded that local initiative Agriculture and Forestry, September 24, and leadership plays a vital role in success- 197 L ful development in the face of these inherent disadvantages. This element should be recognized in the design of credit programs in- I am pleased to appear today in response to tended to foster rural development. The your request that a representative of the credit program can be a catalyst that spurs Federal Reserve Board discuss the relationlocal action. ships between general monetary policy and One role of a credit program can be to expansion of Federally sponsored credit help equalize the access of various ecoprograms in rural areas, such as that pronomic sectors or areas to the Nation's flow posed in S. 2223. of capital funds. A portion of our national At the outset, I would like to note that savings, in the form of retained earnings the Federal Reserve recognizes a need to of farm, industrial, and commercial enteraccelerate the pace of rural development. prises, is directly employed by the saver. It is well known that average personal in- Another portion is moved from savers to come of rural residents continues signifiinvestment uses in the same community by cantly below that of urban dwellers, and that local banks and other depository institutions. educational, medical, and social service fa- But a substantial portion is gathered by ciHties are more limited in rural communilarge insurance companies, pension funds, ties. Growth in rural job opportunities has large banks, and like institutions, and is for many years fallen far short of providing made available in national capital and employment to all the young adults raised money markets. In these markets, these in rural areas, and consequently we have funds are used to purchase credit instrubeen experiencing both massive migration ments offered in sizable blocks by wellto cities and underemployment of those known firms and public and private instituwho chose to remain in the country. The inability of rural communities to provide tions. Smaller users of credit, and those more of the jobs and the amenities of modern not known nationally, thus are not ordinarlife desired by their young people continues ily able to compete directly for these funds. to aggravate the problems being experi- They may, however, obtain indirect access enced by our larger cities. Thus, we are all either through private arrangements with well advised to devote some of our energies larger institutions, or through a Federal to improvement of the pace and quality of credit program. A prominent example of rural development. the latter route is the Federally sponsored Acceleration of economic development cooperative Farm Credit System, which in rural areas encounters problems other lends to farmers those funds that it raises than those of adequate and reasonably through sale of credit instruments in the 815 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
816 FEDERAL RESERVE BULLETIN • OCTOBER 1971 national capital markets. The bill you are are thus likely to encounter more rapid and considering would provide similar Feder- sizable variations in interest cost than other ally sponsored indirect access to capital rural borrowers who are obtaining their markets to other rural residents, firms, and loans from typical rural banks. Because governments, probably thereby improving rural banks obtain most of their loanable upon such indirect access as these groups funds through local deposits rather than in may already have achieved through exist- money markets, the rates of interest they ing private or public arrangements. charge their borrowers have not generally The addition of another economic sector responded rapidly to changes in rates in —in this case, rural nonfarm business and national markets. The rural borrowers governments—to those for whom Federal given market access through a credit procredit programs have already been pro- gram are Hkely to find funds available durvided would not, in my opinion, significantly ing periods of restraint, but probably at a handicap the capability of the Federal Re- relatively high price. Some may postpone serve to administer monetary policy. It their projects until interest rates fall. In would, however, affect the distribution of other words, if rural development is stimuthe impact of restrictive policy among sec- lated by improving rural access to national tors, and would tend to increase the cost capital markets, the degree of stimulus of funds raised through all Federal credit would be related to the prevailing degree of programs. The significance of these effects monetary ease or restraint and its effect on would be directly related to the size of the interest rate levels. added program. The impact of likely fluctuations in in- Distribution of the impact of restrictive terest rates may be reduced or eliminated monetary policy would be affected because for some borrowers by providing a sub- Federally sponsored programs have demon- sidy such as that proposed in S. 2223. More strated their ability to raise substantial generally, subsidies may be provided in a amounts of funds even during periods of Federal credit program as a further stimulus tight money. But with restrictive policy to the activity being promoted. In this holding down the over-all volume of funds event, it is desirable that the element of available, the funds raised by an additional subsidy be provided in a form that is readily Federal program, beyond those that the evident and quantifiable, as is done in sector served would have otherwise ob- S. 2223, and that the continued need for and tained, must necessarily be balanced by a amount of such subsidy be subject to perireduction in funds raised by other sectors. odic congressional review. On this topic, Among the sectors that appear especially as well as on the design of Federal credit vulnerable to this effect are those that do not programs in general, the recommendations have access to capital markets. made in 1963 by the Committee on Federal Although, as just noted, the ability to Credit Programs (Dillon, Bell, Heller, and raise a substantial volume of funds is Martin) continue to provide sound guidachieved by access to the market in periods ance. of monetary restraint, the cost of these I have mentioned the Federal Reserve funds is likely to be rapidly and significantly interest in rural development. Our studies of affected both by policy actions and by eco- regional and agricultural lending indicate nomic developments in general. Rural bor- that for many years after World War II rowers from Federally sponsored agencies most rural banks had funds in excess of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 817 local loan demands. Some years ago, how- well correspondent banking relationships are ever, this situation began to change. Banks currently functioning in terms of supplying in many rural areas, such as areas in which funds to rural banks, (2) the effect that bank the livestock industry has been rapidly ex- branching and holding company activity has panding, have exhausted accumulations of had on farm lending by banks in several liquidity and still continue to face loan States where the law has recently permitted demands that are increasing faster than such structure changes, and (3) the reasons their local deposits. To participate better in why the mechanism which permits commeeting the credit demands of their com- mercial banks to discount farm loans at munities, rural banks in this position need Federal intermediate credit banks has not improved access to nonlocal sources of been used to a significant extent. We hope funds, through development of markets for that our studies and findings will be helpful their assets and liabihties, through banking in efforts to maintain the role of rural banks structure change that would bring the serv- as a credit source for agricultural and other ices of larger banks to rural areas, or rural development. through improved credit services via correspondent banking, the Federal intermediate credit banks, or the Federal Reserve Statement by Arthur F. Burns, Chairman, discount mechanism. Federal Reserve staff Board of Governors of the Federal Reserve work undertaken in the course of our reap- System, before the Subcommittee on Domespraisal of the discount mechanism, and tic Finance of the Committee on Banking since published, noted in detail and at length and Currency, House of Representatives, the disadvantages faced by small rural banks September 27,1971. in attempting to develop nonlocal sources of funds. Consequently, the Board has under Mr. Chairman, I am here in response to consideration a proposal that would expand your invitation to discuss Federal Reserve and routinize the availability of funds at transactions in obligations issued by Fedour discount window for the seasonal needs eral agencies, and particularly the decision faced by these banks. —announced September 16 by the Federal As a further outgrowth of that work, a Open Market Committee—to broaden such System committee is conducting a program transactions to include outright purchases of research into the possibilities afforded by and sales as well as repurchase agreements. the other sources of nonlocal funds that I This committee will recall that the Syshave mentioned. Our principal focus in this tem's authority to purchase agency issues work is on mechanisms through which rural was broadened in 1966. Up to that time we banks could raise funds in financial markets. were authorized to purchase obligations These markets presently do not accom- "which are direct obhgations of the United modate the small sizes and amounts of States or which are fully guaranteed by the securities that each rural bank has to offer. United States." This authority covered Therefore we are examining ways in which some, but not all, agency issues. The prinsuch instruments could be pooled into larger cipal issues in terms of aggregate size and lots, or endorsed by larger banks, or in other market activity were ineligible for purchase ways be made more attractive to investors by the System. These inehgible issues inin central markets. Other phases of the cluded Federal intermediate credit bank research program are examining (1) how debentures. Federal home loan bank notes Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
818 FEDERAL RESERVE BULLETIN • OCTOBER 1971 and bonds, Federal land bank bonds, bank 'pegging' the interest rates for any particular for cooperatives debentures, and Federal issues, for such actions would give rise to official dominance of the markets that would run counter National Mortg£ige Association debentures to many of the broader objectives of Federal and certificates of participation. financial policies and might in fact harm rather In 1966, the Board recommended that than aid the propitious functioning of the market the authority for System transactions in for such securities." agency issues be amended to make all issues As you know. System open market opereUgible. In support of this recommendation. ations are conducted to carry out the objec- Vice Chairman Robertson testified that it tives of monetary poUcy by affecting the "would increase the potential flexibihty of volume of bank reserves, money, bank open market transactions and could also credit, and conditions in credit markets. In serve to make these securities somewhat December 1966 the System started transacmore attractive to investors." He also tions in agency issues with a view to fitting pointed out that "it might prove desirable such transactions into its open market operto conduct such operations in the form of ations. In Une with the Board's testimony on repurchase agreements" in order "to reduce the 1966 amendment, it was then decided to the risk of undesired System market domiconfine these new transactions to repurchase nance associated with sizable outright transagreements. From time to time, however, the actions by the System." Federal Open Market Committee has con- Accordingly, the Congress added to Secsidered broadening operations in agency tion 14(b) of the Federal Reserve Act issues to include outright purchases and sales authority for the System "to buy and sell as well as repurchase agreements. After due in the open market, under the direction and deliberation, the Committee has now regulations of the Federal Open Market decided to take this step, as the announce- Committee, any obligation which is a direct ment of September 16 indicates, in order obligation of, or fully guaranteed as to printo widen the base of System open market cipal and interest by, any agency of the operations and at the same time to add United States." breadth to the market for agency securities. In commenting on this amendment, the The recent decision to begin outright Senate Banking and Currency Committee transactions reflects the fact that the market report included the following statement, in agency issues, while less broad than that reflecting similar comments in Vice Chairin Treasury issues, has grown substantially in man Robertson's testimony: recent years. The amount of Federal agency "By authorizing System transactions in agency issues outstanding in the hands of private issues, the bill would place them on the same foot- investors has risen from about $8 bilUon at ing as direct obligations of the U.S. Government the end of 1960 to $14.1 billion at the close so far as System open market operations are con- of 1965 and to nearly $45 bilhon in early cerned. As with direct Treasury debt, System August of this year. The $45 biUion of decisions as to whether, when, and how much to agency issues amounted to 28 per cent of the buy or sell of agency issues would have to be made with a view to the need for supplying or amount of Treasury issues outstanding at the absorbing reserves as indicated by the stance of time; at the end of 1960 the comparable monetary policy and in light of developments in figure was SVi per cent. Thus there is less the markets, including the need to cope with dis- risk that System purchases or sales could orderly market conditions, should they emerge. In dominate the market. any event, it would be important, as at present, to avoid any semblance of 'rigging' the markets or Since the hope is that System operations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
STATEMENTS TO CONGRESS 819 will help to improve the market for these We plan to buy only taxable securities for issues, we must be careful to avoid driving which there is an active secondary market. away other investors, as might happen if the The requirement of an active secondary mar- System acquired a disproportionately large ket will help to insure that the System's portshare of an issue and depressed its yield foUo remains liquid; it will also encourage relative to other investment alternatives. To issuing agencies and underwriters to develop protect against this risk, the initial guide- secondary markets in their securities. lines for System purchases include a pro- Under the initial guidelines, an issue will vision limiting our holdings of any issue to be eligible for purchase if at least $300 10 per cent of the amount outstanding. milHon is outstanding; for longer-term issues We expect our portfolio of agency issues (over 5 years) the cutoff will be $200 milto grow modestly in the coming months, lion. In early August, when there were about taking into account the amount of growth $45 bilUon of agency issues outstanding, in bank reserves that is appropriate for about $32 bilHon of these met the size test. monetary policy, the size of the market in A breakdown of these eligible issues is shown agency issues, and the necessity of con- in the following table: tinuing operations in Treasury obUgations ISSUES ELIGIBLE FOR SYSTEM TRANSACTIONS as well. Transactions will be made in the UNDER INITIAL GUIDELINES' market, at prices set by the market. We will Amounts Number seek quotations from dealers and buy or sell Maturity' in billions of issues at the most favorable prices quoted. We 0-5 years $25.3 61 Over 5 years ^ will not buy any new issue until at least 2 Total 32.2 82 weeks after it is issued, so as to provide an Agency opportunity for estabUshing a fair price in Farm credit agencies $10.8 25 the market for the issue without interference FHLB 5.6 15 FNMA 10.1 28 by the Federal Reserve. GNMA 4.3 10 Export-Import Bank .... 1.5 4 You will notice that the initial guidelines ' Minimum issue size is $300 million for issues maat the end of my statement provide that our turing in 5 years or less and $200 million for issues holdings of agency issues will be allowed to maturing in more than 5 years. run off at maturity. This reflects a technical One cannot say with certainty what the problem, in that the procedures by which results of our experimental transactions in agency issues are now marketed do not agency issues will be. We hope they will be provide for exchange of maturing issues on beneficial in terms of greater flexibility for the basis that the System now exchanges its System open market operations, broader holdings of maturing Treasury issues for new markets for agency securities, and a narissues. Presumably such arrangements could rower spread between such securities and be worked out for agency issues. This illus- Treasury obligations. If the borrowing costs trates a point made in the announcement of of Federal agencies are reduced, however September 16—that the initial guidelines modestly, that result will be most welcome to will be subject to review and revision as the Federal Reserve as well as the issuing operating experience is gained. agencies and the pubUc they serve. • 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 Committee at each meeting, in the form in which they will appear in the Board's Annual Report, are released approximately 90 days following the date of the meeting and are subsequently published in the Federal Reserve BULLETIN. The record for each meeting includes the votes on the policy decisions made at the meeting as well as a resume of the basis for the decisions. The summary descriptions of economic and financial conditions are based on the information that was available to the Committee at the time of the meeting, rather than on data as they may have been revised since then. Policy directives of the Federal Open Market Committee are issued to the Federal Reserve Bank of New York—the Bank selected by the Committee to execute transactions for the System Open Market Account. Records of policy actions have been published regularly in the BULLETIN beginning with the July 1967 issue, and such records have continued to be published in the Board's Annual Reports. The records for the meetings held in 1971 through June 8 were published in the BULLETINS for April, pages 320-27; May, pages 391-98; June, pages 503-11; July, pages 599-606; August, pages 663-71; and September, pages 715-22. The record for the meeting held on June 29, 1971, follows: 820 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
MEETING HELD ON JUNE 29, 1971 1. Authority to effect transactions in System Account. Information reviewed at this meeting suggested that real output of goods and services was expanding moderately in the second quarter, after having risen sharply earlier in the year under the stimulus of the post-strike recovery in the automobile industry. Continued moderate gains in activity appeared to be in prospect for the rest of 1971. Retail sales had declined in May, but according to weekly data they turned up in the first half of June. It appeared likely that the volume of retail sales in the second quarter as a whole would be appreciably above that of the first quarter. According to tentative estimates, industrial production was rising in June at a slower rate than in May. Conditions in labor markets remained slack; both the number of persons receiving unemployment insurance benefits and the number making initial claims for such benefits had increased further in recent weeks. In May private housing starts remained close to the advanced level that had been reached in the two preceding months. Both consumer prices of goods and services and wholesale prices of industrial commodities increased sharply in May—the latter for the second successive month—after having risen at moderate rates earlier in the year. Wage rates continued to advance rapidly in most sectors of the economy. The expectation that over-all economic activity would continue a gradual expansion in the second half of 1971 was based in part on the assumption that there would not be a strike in the steel industry when wage contracts expired at the end of July—or that if there were a strike, it would not be of long duration. The latest staff projections, like those of 3 weeks earlier, suggested that the rise in residential construction outlays would slow as the year progressed but would remain sizable, and that expenditures by State and local governments would continue to expand at a substantial rate. As before, it appeared that business fixed investment outlays would increase relatively little in the second half. And it was still anticipated that growth of consumer spending would be sustained in part by the recent increase in social security benefits, including retroactive payments made in late 821 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
822 FEDERAL RESERVE BULLETIN • OCTOBER 1971 June; by a possible military pay raise; and by some decline in the personal saving rate. The U.S. merchandise trade balance, which had shifted from a small surplus in the first quarter to a large deficit in April, remained in substantial deficit in May as a rise in exports was matched by a roughly equal rise in imports. The over-all balance of payments on the official settlements basis had been in surplus in recent weeks, in part because of some reversal of earlier speculative outflows of shortterm capital from the United States. Funds moved out of Germany as the German Federal Bank bought a large amount of marks (sold dollars) at rising exchange rates for the mark; the rate currently was about 4.7 per cent above its par value, compared with 3.8 per cent in early June. The outflow from Germany depressed very short-term interest rates in the Euro-dollar market, and this decline in Eurodollar rates apparently had been a factor contributing to the upturn in recent weeks in the liabilities of U.S. banks to their foreign branches. The exchange rate for the Dutch guilder had increased sharply when the German Federal Bank began to sell dollars, but later it declined to 1.6 per cent above par. In connection with its sales of dollars in foreign exchange markets, the German Federal Bank not only sold U.S. Treasury bills but also redeemed a substantial volume of special nonmarketable U.S. Treasury securities it had acquired earlier. In part for this reason, the Treasury's cash balance was drawn down to a very low level prior to the mid- June tax date, and in the period June 8-16 the Treasury financed part of its cash needs temporarily through the sale of special certificates of indebtedness to the Federal Reserve Banks.^ To replenish its cash balance, on June 22 the Treasury auctioned $2l^ billion of 16-month notes for payment on the day of this meeting, and on June 30 it was scheduled to auction for payment on July 6 $iy4 billion of tax-anticipation bills due in September. Also, on the day before this meeting the Treasury announced that the German Federal Bank would acquire up to $5 billion of special mediumtermi U.S. Treasury securities in an operation to be completed within the next few weeks, and that the Federal Bank had already acquired $3 billion of the contemplated total. This acquisition was financed ^The maximum volume of such certificates outstanding in the June 8-16 period was $610 million, on June 10. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 823 in part by the sale of $1 billion of Treasury bills in the market, thus adding a like amount to the Treasury balance, and in part by the redemption of about $2 billion of short-term special Treasury securities the Federal Bank had acquired earlier in the year. Interest rates on most types of long- and short-term market securities had increased on balance since the June 8 meeting of the Committee. Contributing to the upward rate pressures were investor concern about the size of the Treasury's potential needs for cash and indications that the Federal Reserve was fostering firmer money market conditions in an effort to moderate the growth of the monetary aggregates. The market for State and local government bonds remained under pressure throughout the period, but conditions in the market for new corporate bonds—and to a lesser extent in that for long-term Treasury securities—improved somewhat after midmonth, mainly as a result of some indicated reduction in the forthcoming volume of new corporate issues. In short-term markets, rates on Treasury bills were subject to additional pressures arising out of actual and anticipated sales of bills by foreign official accounts. The market rate on 3-month bills, at about 4.95 per cent on the day before this meeting, was roughly 50 basis points above its level of 3 weeks earlier. During June banks raised further their offering rates on large-denomination CD's, and early in the month several medium-sized banks increased their prime lending rate from 5% to 6 per cent. However, at the time of this meeting most banks were maintaining a 5^A per cent prime rate. Contract interest rates on conventional new-home mortgages edged up during May after trending down for nearly a year. In the more sensitive secondary market for federally insured mortgages, yields had turned up in late April and had reached a new high for 1971 in early June. Secondary-market yields later stabilized, apparently in part as a result of a special FNMA auction of purchase commitments on June 9, which was aimed at reducing inventories of mortgage companies and other institutions that originated loans for resale. Inflows of savings funds to nonbank thrift institutions remained large during the first half of June. Tentative estimates for June suggested that consumer-type time and savings deposits at commercial banks were continuing to expand at the relatively rapid rate of the two preceding months and that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
824 FEDERAL RESERVE BULLETIN • OCTOBER 1971 volume of large-denomination CD's outstanding was rising somewhat from its average level in May. It appeared from data for weekly reporting banks that the sharp increase in business loans recorded in May was not continuing in June. Total bank credit, as measured by the adjusted proxy series—daily-average member bank deposits, adjusted to include funds from nondeposit sources—^was tentatively estimated to have risen at an annual rate of about 7.5 per cent from May to June and about 7 per cent over the second quarter as a whole.2 Over the first quarter, the adjusted bank credit proxy had increased at a rate of approximately 11 per cent. Both the narrow and the broader measures of the money stock— Ml (private demand deposits plus currency in circulation) and Mo (Ml plus commercial bank time deposits other than large-denomination CD's)—appeared to be growing rapidly on the average in June, although not so rapidly as in May. For the second quarter as a whole. Ml was currently estimated to have expanded at a rate of about 11.5 per cent, and Mo at a 13 per cent rate. System open market operations in the period since the June 8 meeting of the Committee had been directed at attaining somewhat firmer conditions in the money market in light of the continued rapid growth of the monetary aggregates. The Federal funds rate, which had been fluctuating around per cent shortly before the preceding meeting, rose gradually over the period to the neighborhood of 5V8 per cent. In the 3 weeks ending June 23 member bank borrowings averaged about $390 miUion, compared with about $330 million in the preceding 4 weeks. Staff analysis suggested that, if conditions in the money market were similar to those that had prevailed on the average during the period since the previous meeting, Mi would grow slightly less in the third quarter than it had in the second, and growth in Mo also would slow somewhat. In contrast, the adjusted bank credit proxy was expected to expand more rapidly in the third quarter than it had in the second. According to the analysis, if money market conditions were somewhat firmer, it was likely that both Mi and Mo would expand at annual rates in the neighborhood of 9 per cent over the third quarter. ^ Calculated on the basis of the daily-average level in the last month of the quarter relative to that in the last month of the preceding quarter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 825 but that growth in these aggregates would recede to quite modest proportions by the final quarter of the year. In the Committee's discussion considerable concern was expressed about the rapid growth in the monetary aggregates, particularly in light of the persistence of inflationary pressures and expectations. At the same time, concern was expressed about the recent upward pressures on interest rates, in view of the dependence of the current economic recovery on continued expansion in such interestsensitive sectors of the economy as residential construction. While the members agreed that an unduly sharp firming of money market conditions should be avoided because of the risk of undesired repercussions on market interest rates, the Committee decided that open market operations in the coming period should be directed at achieving more moderate growth in monetary aggregates over the months ahead. As at the preceding meeting, it was agreed that account should be taken of developments in capital markets in the conduct of operations. The following current economic policy directive was issued to the Federal Reserve Bank of New York: The information reviewed at this meeting suggests that real output of goods and services is expanding moderately in the current quarter and that the unemployment rate has remained high. Wage rates in most sectors are continuing to rise at a rapid pace. The rate of advance in both consumer prices and wholesale prices of industrial commodities has stepped up again recently after moderating earlier in the year. In June, according to tentative estimates, the money stock both narrowly and broadly defined is still growing rapidly on average, although less than in May; growth in the bank credit proxy remains below the first-quarter rate. Interest rates on most types of market securities have increased on balance in recent weeks. The market exchange rate for the German mark has advanced, and a substantial flow of funds from Germany to other markets has occurred in recent weeks. In consequence of a partial reversal of the earlier speculative outflows of short-term capital from the United States and of an increase in Euro-dollar borrowings of U.S. banks, there has been a surplus in the U.S. payments balance on the official settlements basis in this period. The U.S. merchandise trade balance, which had been in small surplus in the first Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
826 FEDERAL RESERVE BULLETIN • OCTOBER 1971 quarter, was in deficit in April and May. 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 achieve more moderate growth in monetary aggregates over the months ahead, taking account of developments in capital markets. System open market operations until the next meeting of the Committee shall be conducted with a view to achieving bank reserve and money market conditions consistent with those objectives. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Maisel, Mayo, Mitchell, Morris, Robertson, Sherrill, and Coldwell. Votes against this action: None. Absent and not voting: Mr. Kimbrel. (Mr. Coldwell voted as his alternate.) 2. Amendment to continuing authority directive. The Committee amended paragraph 2 of its continuing authority directive to the Federal Reserve Bank of New York with respect to domiestic open market operations, to reduce the dollar limit on Federal Reserve Bank holdings of short-term certificates of indebtedness purchased directly from the Treasury from $2 billion to $1 billion. Votes for this action: Messrs. Burns, Hayes, Brimmer, Clay, Daane, Maisel, Mayo, Mitchell, Morris, Robertson, Sherrill, and Coldwell. Votes against this action: None. Absent and not voting: Mr. Kimbrel. (Mr. Coldwell voted as his alternate.) The dollar limit in question had been increased to $2 billion at the preceding meeting of the Committee, after the System Account Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
RECORD OF POLICY ACTIONS OF FOMC 827 Manager advised that an expected sharp decline in the Treasury's cash balance in the period before the mid-June tax payment date might necessitate temporary borrowing by the Treasury from the System in an amount exceeding the then-existing $1 billion limit. It had been anticipated at the time of that action that the $1 billion limit would be restored at today's meeting. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Law Department Statutes, regulations, interpretations, and decisions SECURITIES CREDIT TRANSACTIONS: must, with certain exceptions, comply with the RULES GOVERNING BORROWERS provisions of the margin regulation that would apply if the credit were obtained in the United Pursuant to section 7(f) of the Securities Ex- States. change Act of 1934 (15 U.S.C. 78g), as amended The Board's regulations regarding lenders are by an Act of October 26, 1970 (84 Stat. 1114), Regulation G, "Securities Credit by Persons Other the Board of Governors has adopted, effective than Banks, Brokers, or Dealers", Regulation T, November 1, 1971, a regulation governing bor- "Credit by Brokers and Dealers", and Regulation rowers who obtain securities credit. U, "Credit by Banks for the Purpose of Purchas- The new regulation—designated Regulation X ing or Carrying Margin Stocks". The text of —will require persons borrowing in the United Regulation X reads as set forth below. (The States to comply with the margin regulations ap- Statutory Appendix, which is not printed herein, plicable to the lender extending him credit on referred to in the Regulation comprises parts of securities. If a U.S. person borrows abroad, he 15 U.S.C. 78.) REGULATION X (12 CFR 224) Effective November 1, 1971 RULES GOVERNING BORROWERS WHO OBTAIN SECURITIES CREDIT - SECTION 224.1—SCOPE OF PART wise wilfully and intentionally evading the provisions of those regulations. When the term "ob- This Part 224 (Regulation X) contains Rules tain credit" is used in this part (Regulation X) it and Regulations promulgated by the Board of means "obtain, receive, or enjoy the beneficial use Governors of the Federal Reserve System ("the of credit" and when the term "purpose credit" is Board") under the Securities Exchange Act of used, it means "credit for the purpose of purchas- 1934 as amended ("the Act") and applies to all ing or carrying securities." When the term "borpersons described below who obtain, receive, or rower" is used, it means a person who obtains enjoy the beneficial use of credit for the purpose credit. This part (Regulation X) implements secof purchasing or carrying securities.^ For definition 7(f) of the Act, and generally applies to tions of technical terms see section 224.5, Parts borrowers who are: 207, 220, and 221 (Margin Regulations G, T, and (a) Persons who obtain credit from within the U) and the Statutory Appendix. The purpose of United States, or this part (Regulation X) is to prevent the infusion (b) Those persons who obtain credit from outof unregulated credit obtained both outside and side the United States who are: within the United States into United States securi- (1) United States persons,^ ties markets in circumvention of the provisions of (2) Foreign persons who are controlled by the Board's margin regulations or by borrowers United States persons,^ or falsely certifying the purpose of a loan or other- 2 For definition of the term "United States person," see * This text corresponds to the Code of Federal Regula- Statutory Appendix, section 7(f)(2)(A). tions, Title 12, Chapter II, Part 224, cited as 12 CFR 224. ®For definition of the term "foreign person controlled The words "this part," as used herein, mean Regulation X. by a United States person," see Statutory Appendix, sec- 115 U.S.C. 78g. tion 7(f) (2) (C). 828 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
(3) Foreign persons acting on behalf of or G-lender shall conform to the provisions of Part in conjunction with ^ United States persons. 207 (Regulation G), except that the requirement of section 207.1(e) as to obtaining a statement of SECTION 224.2—GENERAL RULE the purpose of the credit shall not apply. (ii) Credit obtained from a foreign branch or (a) Credit obtained from within the United subsidiary of a broker/dealer shall conform to the States. A borrower shall not obtain any purpose provisions of Part 220 (Regulation T). credit from within the United States unless he does (iii) Credit obtained from a foreign branch of so in compliance with the following conditions: a bank shall conform to the provisions of Part 221 (1) Credit obtained from a G-lender shall con- (Regulation U) which would apply if the credit form to the provisions of Part 207 (Regulation were obtained from the head office of the bank in G), which is hereby incorporated in this part the United States, except that the requirement of (Regulation X). When the term "G-lender" is section 221.3(a) of Part 221 (Regulation U) as used in this part (Regulation X), it means a per- to obtaining a statement of the purpose of the son who is not a broker/dealer or bank, who in credit shall not apply. the ordinary course of his business extends, main- (iv) Credit obtained from a foreign lender shall tains, or arranges credit that is secured, directly or conform to the provisions of Part 207 (Regulaindirectly, in whole or in part, by collateral that tion G) which would apply if the person extendincludes any margin securities, and who is subject ing, arranging, or maintaining the credit were a to the registration requirement of section 207.1 (a) G-lender, except that the requirement of secof Part 207 (Regulation G). tion 207.1(e) of Part 207 (Regulation G) as to (2) Credit obtained from a broker/dealer shall obtaining a statement of the purpose of the credit conform to the provisions of Part 220 (Regula- shall not apply. When the term "foreign lender" tion T), which is hereby incorporated in this part is used in this part (Regulation X) it means any (Regulation X). When the term "broker/dealer" person, other than a United States person, who in is used in this part (Regulation X), it means a the ordinary course of his business extends, mainperson who is a broker or dealer, including every tains, or arranges purpose credit outside the member of a national securities exchange, and United States and who is not a foreign branch or includes a foreign branch or subsidiary of a subsidiary of a broker/dealer, a foreign branch of broker/dealer. a bank, or a foreign branch of a G-lender. (3) Credit obtained from a bank shall con- (2) The provisions of subparagraph (1) of this form to the provisions of Part 221 (Regulation paragraph 224.2(b) shall not apply to credit ex- U), except for section 22L2(i). Except for such tended before November 1, 1971, except that as section. Part 221 (Regulation U) is hereby incor- to credit extended after October 26, 1970, the porated in this part (Regulation X). When the requirements as to withdrawals and substitutions term "bank" is used in this part (Regulation X), of collateral shall apply after May 1, 1972, as it means a bank that is subject to Part 221 (Regu- follows: the requirements in paragraph 207.1 (j) lation U).^ of Part 207 (Regulation G) shall apply to credit (b) Credit obtained from outside the United obtained from a foreign branch of a G-lender or States. (1) A United States person or foreign from a foreign lender; the requirements in paraperson controlled by a United States person or graph 220.3(b) of Part 220 (Regulation T) shall acting on behalf of or in conjunction with such apply to credit obtained from a foreign branch or a person shall not obtain any purpose credit ^ from subsidiary of a broker/dealer; and the requireoutside the United States except in compliance ments in paragraph 221.1 (b) of Part 221 (Regulawith the following conditions: tion U) shall apply to credit obtained from a (i) Credit obtained from a foreign branch of a foreign branch of a bank. (3) Record of credit. Every borrower subject to this Part 224 (Regulation X) who obtains any ^For definition of the term "acting on behalf of or in conjunction with," see section 224.5(a) of this part (Regu- credit from a lender described in subdivisions (i), lation X). (iii), or (iv) of paragraph 224.2(b)(1), if such •"^For definition of the term "bank" meaning "bank credit is secured directly or indirectly, in whole or that is subject to Regulation U," see section 224.5(b) of this part (Regulation X) and Statutory Appendix, section in part, by collateral that includes any security, 3(a)(6). shall prepare and retain in his records, for at least '' For definition of the term "purpose credit," see sec- 6 years after such credit is extinguished, a record tion 224.5(j) of this part (Regulation X). 829 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
830 FEDERAL RESERVE BULLETIN • OCTOBER 1971 substantially in conformity with the requirements SECTION 224.5—DEFINITIONS of Federal Reserve Form X-1. Unless the context otherwise requires, or it is otherwise specified herein, the terms used in and SECTION 224.3—EXEMPTIONS for the purposes of this part (Regulation X) have The following classes of persons shall be ex- the meanings given them in this section 224.5, in empted from the provisions of section 7(f) of the sections 3(a) or 7(f) of the Act, or in Parts 207, Act and this part (Regulation X) to the extent 220, or 221 (Regulations G, T, or U). The reledescribed below: vant portions of sections 3(a) and 7(f) of the Act (a) A United States person whose permanent are set forth in the Statutory Appendix. In the residence is outside the United States, and who case of inconsistency between definitions appeardoes not during any calendar year obtain a total ing in this section 224.5 and those appearing in of more than $5,000 or have outstanding at any Parts 207, 220, or 221 (Regulations G, T, or U), time during any calendar year a total of more the definition appearing in the regulation that apthan $5,000 in credit obtained outside the United plies to the particular credit involved, whether States to purchase or carry margin securities. Parts 207, 220, or 221 (Regulations G, T, or U), shall prevail. (b) A borrower who is not a United States person, but is controlled by or acting on behalf (a) The term "acting on behalf of or in conof or in conjunction with such person, who ob- junction with" in reference to a foreign person tains credit for the purpose of bona fide clearing, means obtaining credit for the purpose of purmarket making, or arbitrage transactions in off- chasing or carrying a security in which, or in the shore debt securities that are convertible into mar- income or gains or losses from which, a United gin securities, except that any credit outstanding States person or a foreign person controlled by a against collateral consisting of such securities shall United States person has a substantial direct or be brought into conformity with the other pro- indirect beneficial interest. Absent these factors visions of this part (Regulation X)^ upon the con- the term does not include an interest derived version of such securities into margin securities. solely from the ownership of less than 50 per cent (c) A borrower who is not a United States of the outstanding capital stock issued by such person, but is controlled by or acting on behalf of foreign person who is obtaining such credit. or in conjunction with such person, who obtains (b) The term "bank" means a bank as defined credit from outside the United States, which bor- in section 3(a) (6) of the Act, including a foreign rower has been exempted by the Board of Gov- branch of a bank, except that such term does not ernors of the Federal Reserve System, by Order, include a bank which is a member of a national from the requireme^nts of this part (Regulation securities exchange, a foreign affiliate of a bank, X), either unconditionally or upon specified terms or a foreign bank. and conditions or for stated periods, upon a find- (c) The term "broker/dealer" means any ing that exceptional circumstances warrant the broker or dealer including every member of a granting of such an exemption, and that the ex- national securities exchange, and includes a foremption is consonant with the purposes of sec- eign branch or subsidiary of a broker/dealer. tion 7(f) of the Act and the provisions of this part (d) The term "foreign lender" means a person, (Regulation X). other than a United States person, who in the ordinary course of his business extends, maintains, SECTION 224.4—REPORTS AND RECORDS or arranges purpose credit outside the United States and who is not a foreign branch or sub- Every borrower described in section 224.1 who sidiary of a broker/dealer, a foreign branch of a obtains any credit that is secured directly or inbank, or a foreign branch of a G-lender. directly, in whole or in part, by collateral that (e) The term "G-lender" means a person whoincludes any securities, shall maintain such recis not a broker/dealer or bank, who in the ordiords and file such reports as may be prescribed by nary course of his business extends, maintains, or the Board of Governors of the Federal Reserve arranges credit that is secured, directly or in- System to enable it to perform the functions directly, in whole or in part, by collateral that conferred upon it by the Act. includes any margin securities, and who is subject to the registration requirement of section including Parts 207, 220, or 221 (Regulations G, T, and U) where applicable. 207.1(a) of Part 207 (Regulation G). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 831 (f) The term "indirectly secured" includes any (1) Credit which is for the purpose, whether arrangement with the lender under which the right immediate, incidental, or ultimate, of purchasing or ability to sell, pledge, or otherwise dispose of or carrying a security is "purpose credit," despite securities owned by the borrower (or by any other any temporary application of the funds otherwise. person who has made the use of such securities (2) Credit to enable the borrower to reduce or available to the borrower) is in any way restricted retire indebtedness which was originally incurred as long as the credit remains outstanding, or under to purchase a security is for the purpose of "carrywhich the exercise of such right, whether by ing" such a security. written agreement or otherwise, is or may be (3) Credit that is secured directly or indirectly, cause for acceleration of maturity of the credit. in whole or in part, by collateral that includes any The foregoing shall not apply, however— securities, is presumed to be for the purpose of (1) if such restriction arises solely by virtue of purchasing or carrying securities, unless the boran arrangement with the lender which pertains rower has complied with the requirements of Part generally to the borrower's assets unless a sub- 207 (Regulation G), Part 220 (Regulation T), or stantial part of such assets consists of margin Part 221 (Regulation U) as to the statement of securities, or the purpose of a credit, if such requirements are (2) if the lender in good faith has not relied applicable, or in the case of credit obtained from upon such securities as collateral in the extension a foreign lender, can furnish satisfactory evidence or maintenance of the particular credit, or of the use of the credit for a purpose other than (3) to securities held by the lender only in the purchasing or carrying securities. capacity of custodian, depositary, or trustee, or (4) An extension of credit provided for in a under similar circumstances, if the lender in good plan, program, or investment contract offered or faith has not relied upon such securities as col- sold or otherwise initiated after August 31, 1969, lateral in the extension or maintenance of the which provides for the acquisition both of any particular credit. securities and of goods, services, property inter- (g) The term "lender" means a person who in ests, or investments. the ordinary course of his business extends, main- (k) The term "obtain credit" means to obtain, tains, or arranges for credit, including a G-lender, receive, or enjoy the beneficial use of credit. a broker/dealer, a bank, and a foreign lender. (1) The term "United States" includes any State (h) The term "margin security" shall have the of the United States, the District of Columbia, meaning of "margin security" as defined in sec- Puerto Rico, the Canal Zone, the Virgin Islands, tion 207.2(d) of Part 207 (Regulation G) if the or any other possession of the United States. borrower is obtaining credit from a G-lender or a foreign lender, the meaning of "margin security" SECTION 224.6—MISCELLANEOUS as defined in section 220.2(f) of Part 220 (Regu- PROVISIONS lation T) if the borrower is obtaining credit from a broker/dealer, and the meaning of "margin (a) Innocent mistake. An innocent mistake stock" as defined in section 221.3(v) of Part 221 made in good faith by a borrower in connection (Regulation U) if the borrower is obtaining credit with the obtaining of a credit shall not be deemed from a bank. to be a violation of this part (Regulation X) if (i) The term "ofFshore debt security" as to this promptly after discovery of the mistake the borpart (Regulation X) means a debt security offered rower takes whatever action is practicable to only outside the United States, the purchase of remedy the non-compliance. which by a United States person would give rise (b) Aiding or abetting. Any person who wilto a liability under the Interest Equalization Tax fully aids or abets the violation by any other per- (26 U.S.C. 4911 etseq). son of any provision of this part (Regulation X) (j) The term "purpose credit" means credit for shall be deemed to be in violation of this part the purpose of purchasing or carrying securities. (Regulation X). For the purpose of this para- The purpose of a credit is determined by sub- graph, the term "aids or abets" shall include, but stance rather than form. The following are some not be limited to, counsels, commands, induces, or examples of purpose credit; procures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
832 FEDERAL RESERVE BULLETIN • OCTOBER 1971 BANK HOLDING COMPANIES: PRESUMPTIONS of voting securities of a bank or other company REGARDING CONTROL; FOREIGN BUSINESS (except where such securities are held in a fidu- ACTIVITIES OF DOMESTIC COMPANIES ciary capacity and the company does not have The Board of Governors has amended its Regu- sole discretionary authority to exercise the voting lation Y, "Bank Holding Companies", with respect rights) presumably controls that bank or other to (1) presumptions regarding control of a bank company if (i) one or more of the company's dior other company (section 222.2) and (2) the rectors, trustees, or partners, or officers or emtypes of foreign business activities in which ployees with policymaking functions serves in any domestic bank holding companies may engage. In of these capacities with the bank or other comaddition, to avoid unnecessary repetition of sta- pany, and (ii) no other person owns, controls, or tutory provisions in its regulation, sections 222.3 has power to vote as much as 5 per cent of any (c) and (d) are deleted. class of voting securities of that bank or other The text of the amendments, effective Septem- company. ber 21, 1971, reads as follows: (2) A company that owns, controls, or has power to vote more than 5 per cent of any class AMENDMENTS TO REGULATION Y of voting securities of a bank or other company (except where such securities are held in a fidu- Section 222.2 is amended, sections 222.3(c) ciary capacity and the company does not have and (d) are deleted, and section 222.4 is amended sole discretionary authority to exercise the voting by adding paragraph (f) as set forth below: rights) presumably controls that bank or other company if additional voting securities are owned, SECTION 222.2—DETERMINATIONS controlled, or held with power to vote by indi- REGARDING CONTROL viduals (or members of their immediate families (a) Conclusive presumptions of control. Con- as defined in § 206.2(k) of this chapter (Regulaclusive presumptions that a company controls a tion F)) who are directors, officers, trustees, or bank or other company are established by section partners of the company (or own, directly or in- 2(a)(2)(A) and (B) and by section 2(g) (1) and directly, 25 per cent or more of any class of vot- (2) of the Act. In addition, the Board has deter- ing securities of the company) and, together with mined that, whenever the transferability of 25 the company's securities, aggregate 25 per cent or per cent or more of any class of voting securities more of any class of voting securities of that bank of a company is conditioned in any manner, or other company. whether pursuant to an agreement, by-law, article (3) A company that enters into any agreement of incorporation, or otherwise, upon the transfer or understanding with a bank or other company of 25 per cent or more of any class of voting (other than an investment advisory agreement), securities of another company, the holders of the such as a management contract, pursuant to which securities affected by the condition (that is, those the company or any of its subsidiaries exercises who hold both the securities whose transferability significant influence with respect to the general is so conditioned and the securities whose transfer management or overall operations of the bank or can be required to satisfy the condition) con- other company presumably controls such bank stitute, in their capacity as such, a "company" for or other company. the purposes of the Act unless one of the issuers (4) A company that enters into any agreement of such securities is a subsidiary of the other and or understanding under which the rights of a is so identified in an order of the Board or in a holder of voting securities of a bank or other registration statement or report accepted by the company are restricted in any manner presumably Board under the Act. controls the shares involved, unless the agreement (b) Rebuttable presumptions of control. A re- or understanding (i) is a mutual agreement among buttable presumption that a company controls a shareholders granting to each other a right of first bank or other company is established by section refusal with respect to their shares, or (ii) is inci- 2(g) (3) of the Act. In addition, the Board has es- dent to a bona fide loan transaction, or (iii) relates tablished, for use in proceedings instituted in ac- to restrictions on transferability and continues cordance with the procedures of paragraph (c) only for such time as may reasonably be necessary below, the following rebuttable presumptions: to obtain approval from a Federal bank super- (1) A company that owns, controls, or has visory authority with respect to acquisition by the power to vote more than 5 per cent of any class company of such securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 833 (5) A company that owns directly or indirectly panies. (1) Any bank holding company may, with securities that are immediately convertible at the the consent of the Board, own or control voting option of the holder or owner thereof into voting shares of any company in which a company orsecurities presumably owns or controls the voting ganized under section 25(a) of the Federal Resecurities. serve Act (12 U.S.C. 611-631) may invest other (c) Procedures for determining control. (1) In than a company that accepts deposits or similar any case in which a presumption established by credit balances in the United States. paragraph (b) of this section applies, or in any (2) The procedures governing the Board's conother case where it appears to the Board that a sent shall be the same as those set forth in § 211.8 company exercises a controlling influence over the of this chapter (Regulation K). In addition, the management or policies of a bank or other com- Board grants its general consent for any bank pany, and the company has not complied with the holding company to acquire from any of its subprovisions of the Act, the Board may inform the sidiaries any shares the subsidiary holds with the company that a preliminary determination of con- consent of the Board pursuant to Parts 211 or 213 trol has been made on the basis of the facts sum- of this chapter (Regulations K and M). The Board marized in the communication. Such company may at any time, upon notice, suspend the general shall within 30 days (or such longer period of time consent procedures with respect to any bank holdas may be permitted by the Board) (i) indicate to ing company or with respect to the acquisition of the Board its willingness to terminate the control shares of companies engaged in particular kinds relationship and to furnish promptly its specific of activities. plan to do so; or (ii) state that it will promptly (3) It shall be a condition to the Board's seek Board approval to retain the control relation- specific consent to the continued holding of voting ship, or, if the control relationship has existed shares of any subsidiary of a bank holding comcontinuously since prior to December 31, 1970 pany which are acquired or held on the basis of (in a manner not covered by section 2(a) (2) (A) an exemption under section 4(c) (13) of the Act or (B)), that it will register as a bank holding that the subsidiary may take the following actions company or, if already a holding company, report only with prior Board approval: (a) establish the bank or other company as a subsidiary, or branch offices or agencies in the United States or otherwise comply with the applicable provisions of to engage in receiving deposits in any foreign the Act; or (iii) set forth such facts and circum- country (other than a foreign country in which stances as may support its contention that there is it already has such an activity with the Board's not a control relationship. approval) or (b) issue in the United States any (2) A company may request a hearing to con- debentures, bonds, promissory notes, or similar test the Board's preliminary determination of con- obligations, other than instruments or obligations trol. In the event a hearing is held, any applicable due within one year. presumptions established by paragraph (b) of this (4) A bank holding company shall inform the section shall be considered in the usual manner in Board, through its Federal Reserve Bank within accordance with the rules of evidence, and the 30 days after the close of each semiannual period, Board will by order, on the basis of the record of of all shares acquired or disposed of during that the hearing, decide the issues involved and direct period that are or were held under the authority such action as may be necessary or appropriate in of this paragraph. With respect to any acquisithe circumstances. In the event no hearing is held, tion, such information shall (unless previously furbut the preliminary determination of control is nished) include brief descriptions of the business contested, the Board will decide the matter on the of the companies whose shares were acquired. basis of the evidence available to it, relying on the presumptions established in paragraph (b) of this TRUTH IN LENDING section, and will by order direct such action as may be necessary or appropriate in the circum- The Board of Governors has amended Regustances. lation Z, "Truth in Lending", in order to add Columbus Day as a holiday for purposes of cal- SECTION 222.4—NONBANKING culating the time in which certain credit trans- ACTIVITIES actions may be rescinded. This is reflected in an HS * * * * amendment to footnote 14 in section 226.9, effec- (f) Foreign activities of domestic holding com- tive October 1, 1971, as set forth below: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
834 FEDERAL RESERVE BULLETIN • OCTOBER 1971 AMENDMENT TO REGULATION Z ORDERS UNDER BANK MERGER ACT Footnote 14 in section 226.9 is amended to THE WESTERN GREENBRIER BANK, RAINELLE, WEST VIRGINIA read as follows: In the matter of the application of The Western SECTION 226.9—RIGHT TO RESCIND Greenbrier Bank, Rainelle, West Virginia, for ap- CERTAIN TRANSACTIONS proval of acquisition of assets and assumption of liabilities of The Bank of Rainelle, Rainelle, West Virginia. ^^ For the purpose of this section, a business day is any calendar day except Sunday and those legal public holidays specified in Section 6103(a) of Title 5 of the United States ORDER APPROVING APPLICATION FOR ACQUISITION Code (New Year's Day, Washington's Birthday, Memorial OF ASSETS AND ASSUMPTION OF LIABILITIES Day, Independence Day, Labor Day, Columbus Day, UNDER BANK MERGER ACT Veterans Day, Thanksgiving Day and Christmas Day). There has come before the Board of Governors, pursuant to the Bank Merger Act (12 U.S.C. DELEGATION OF AUTHORITY 1828(c)), an application by The Western Green- The Board of Governors has amended its Rules brier Bank, Rainelle, West Virginia ("Greenbrier Regarding Delegation of Authority effective Sep- Bank"), a member State bank of the Federal tember 2, 1971, pursuant to the provisions of Reserve System, for the Board's prior approval of section ll(k) of the Federal Reserve Act (12 the merger of that bank with The Bank of U.S.C. 248(k)) to delegate to the Director of its Rainelle, Rainelle, West Virginia ("Rainelle Division of Supervision and Regulation authority Bank"), by means of the purchase of assets and assumption of liabilities of the Rainelle Bank. to approve, upon application, a repayment sched- Upon consummation of the transaction the present ule with respect to the deficiency on stock option office of the Rainelle Bank will be closed. Notice loans as defined in § 207.4(a) (2) (ii) of Reguof the proposed action, in form approved by the lation G in lesser amounts and over longer Board, has been published as required by said Act. periods of time than those prescribed therein. The In accordance with the Act, the Board requested text of the amendment reads as follows: reports on competitive factors involved from the Attorney General, the Comptroller of the Cur- AMENDMENT TO rency, and the Federal Deposit Insurance Corpo- RULES REGARDING DELEGATION ration. The Board has considered all relevant ma- OF AUTHORITY terial contained in the record in the light of the factors set forth in the Act, including the effect Section 265.2(c) is amended by adding sub- of the proposal on competition, the financial and paragraph (18) as set forth below: managerial resources and prospects of the banks concerned, and the convenience and needs of the SECTION 265.2(c)—SPECIFIC FUNCTIONS communities to be served, and finds that: Rainelle Bank ($3.9 million deposits), the DELEGATED TO BOARD EMPLOYEES smallest of six banks in Greenbrier County holding AND FEDERAL RESERVE BANKS 9 per cent of county deposits, is the smaller of two banks located in Rainelle. It was established in 1911 as a subsidiary of a local lumber company (c) The Director of the Division of Supervision and throughout its existence has served primarily and Regulation (or, in his absence, the Acting as a depository for the benefit of that company Director) is authorized: and its employees. In December 1970, Georgia Pacific Corporation and its subsidiary, Georgia Pacific Timber Corporation, acquired the assets of (18) Under the provisions of § 207.4(a) (2) the lumber company and, as an incident to that (ii) of this chapter (Regulation G) to approve re- acquisition, the Rainelle Bank. Shortly thereafter, payments of the "deficiency" on stock option loans upon passage of the Bank Holding Company Act in lower amounts and over longer periods of time Amendments of 1970 on December 31, 1970, the than those specified in the regulation. Georgia Pacific corporations became holding com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 835 panics subject to the provisions of the Act. Pursu- tion by Georgia Pacific, is to become highly ant to section 4(c) (12) of the Act, the Georgia automated, resulting in further unemployment in Pacific corporations have filed with the Board of the area. Governors irrevocable declarations of intent to Rainelle Bank has never functioned aggressively divest themselves of their interest in Rainelle as a commercial bank, either by way of competing Bank. for deposits in Rainelle or Greenbrier County or The present proposal comes as a result of adequately serving the credit needs of its com- Georgia Pacific's efforts to dispose of its interest in munity. Its depository character, extremely small Rainelle Bank pursuant to the aforesaid declara- loan to deposit ratio, and failure to improve its tion. Numerous individuals and banking organ- inadequate banking facilities support this conizations were contacted by Georgia Pacific for clusion. (Approximately 45 per cent of its demand deposits derive from 14 accounts; Rainelle Bank's the purpose of finding a prospective purchaser of total loans represent only about 14 per cent of Rainelle Bank. All efforts to sell the stock of total deposits.) Rainelle Bank including such efforts to sell the Applicant, Greenbrier Bank ($6.2 million de- Bank to residents of the Rainelle area or another posits), located one mile west of Rainelle Bank is bank outside of Rainelle were unsuccessful. the only potential purchaser that has expressed Georgia Pacific is thus presented with the alternaany interest in acquiring Rainelle Bank. It is the tive of liquidating Rainelle Bank or disposing of fifth largest of six banks in Greenbrier County it by merger with Greenbrier Bank. If this appliwith 12 per cent of commercial bank deposits. cation is denied, Georgia Pacific intends to Upon consummation of the proposed merger, liquidate Rainelle Bank. Greenbrier Bank will rank second in Greenbrier A principal reason given for Georgia Pacific's County, with approximately 21 per cent of the failure to interest any prospective purchaser other commercial bank deposits in the county. Conthan Greenbrier Bank is that West Virginia laws summation of the proposed transaction will have prohibit branching and the formation of bank no significantly adverse effect upon competition in holding companies in the State. Any existing bank Greenbrier County. acquiring Rainelle Bank, therefore, would have Rainelle is located near the boundary of Fayette to cease operating at any other location to be able County which contains offices of eight banks. to continue the activities of Rainelle Bank in Banks located in Alderson, Ronceverte and White Rainelle. Rainelle Bank has operated in rent-free Sulfur Springs advertise in the Rainelle newspaper quarters owned by the lumber company. These and presently do provide financial services to some facilities are inadequate and it will be necessary residents of the Rainelle area. Completion of a for any purchaser to construct new banking quarnew interstate highway leading to these surroundters. Georgia Pacific has said it would not iming communities will increase the ability of prove Bank's facilities because of its intent to Rainelle area residents to utilize these existing cease the Bank's operations pursuant to its irre- banking alternatives. While approval of the instant vocable declaration filed with the Board. The proposal may appear to have the effect of eliminanecessity for the construction of new quarters ting some existing competition in the town of coupled with the economy of the Rainelle area, Rainelle, the same elimination of such competition discussed below, have been further factors in- will occur if this proposal is denied and Rainelle fluencing negatively the decision of prospective Bank liquidated. purchasers. Terms of the proposed transaction do not ap- Rainelle (population 1,800) is an economically pear to involve the payment of any premium by stagnant and geographically remote community the Greenbrier Bank to Georgia Pacific reflecting situated in a mountainous area in the southeastern the acquisition of a going concern or indicating an section of the State of West Virginia. Population intent on that Bank's part to acquire a monopoly of the Rainelle area decreased significantly in the position in Rainelle. The virtual certainty that last 10 years, in part as a result of local coal min- Rainelle Bank will be liquidated leads to the coning facilities becoming highly mechanized and the clusion that any diminution or deterioration in location of the community. Future prospects for competition in Rainelle will arise independently economic growth are very uncertain and the of the proposed merger. Since there is no other operation of the lumber mill, formerly Rainelle's known prospective purchaser for Rainelle Bank, largest employer, as a consequence of its acquisi- the Board concludes that the purpose of the pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
836 FEDERAL RESERVE BULLETIN • OCTOBER 1971 posed merger is not one of lessening competition, THE CITIZENS CENTRAL BANK but of mitigating possible undesirable conse- ARCADE, NEW^ YORK quences to the community of Rainelle and should not be viewed as the acquisition of a monopoly by In the matter of the application of The Citizens Applicant of Rainelle. Central Bank, Arcade, New York, for approval of While the financial condition of Rainelle Bank merger with Bank of Elba, Elba, New York. is satisfactory, it faces serious management succession problems since its chief operating officer is ORDER APPROVING MERGER OF BANKS in poor health and has stated his intention to retire and there is no successor available from the There has come before the Board of Governors, bank's present staff. The financial condition of pursuant to the Bank Merger Act (12 U.S.C. Greenbrier Bank is satisfactory although it also 1828(c)), an application by The Citizens Central has a relatively low loan volume. Its management Bank, Arcade, New York ("Citizens Bank"), a and banking quairters appear adequate and con- member State bank of the Federal Reserve System, summation of the present proposal should enable for the Board's prior approval of the merger of it to better serve the financial needs of Rainelle. It, that bank and Bank of Elba, Elba, New York therefore, appears that the financial needs of the ("Elba Bank"), under the charter and name of Rainelle community will be more adequately Citizens Bank. served by the strengthened Greenbrier Bank. As an incident to the merger, the sole office of Avoidance of public inconvenience and con- Elba Bank would become a branch of the resultfusion brought about by the liquidation of the ing bank. Notice of the proposed merger, in form Rainelle Bank and the infusion of additional approved by the Board, has been published purresources into the Greenbrier Bank, with the suant to said Act. resulting enlarged lending capability, clearly con- In accordance with the Act, the Board requested stitute significant public interest benefits to the reports on the competitive factors involved from convenience and needs of the Rainelle community the Attorney General, the Comptroller of the which in our opinion outweigh any anticompetitive Currency, and the Federal Deposit Insurance Corconsequences which will result by virtue of the poration. The Board has considered all relevant approval of this proposal. material contained in the record in the light of the The Board has considered all relevant material factors set forth in the Act, including the effect of contained in the record, in light of the factors set the proposal on competition, the financial and forth in the Bank Merger Act, and it is the Board's managerial resources and prospects of the banks judgment that the proposed transaction would be concerned, and the convenience and needs of the in the public interest, and that the application communities to be served, and finds that: should be approved. Citizens Bank, a subsidiary of Charter New IT IS HEREBY ORDERED, on the basis of the York Corporation, New York, with deposits of record, that said application be and hereby is $35 million, is the eleventh largest of 32 banks approved for the reasons summarized above, pro- headquartered in New York's Ninth Banking Disvided that the action so approved shall not be con- trict wherein it operates five banking offices in summated (a) before the thirtieth calendar day three of the District's eight counties (all banking following the date of this Order or (b) later than data are as of December 31, 1970). Elba Bank, three months after the date of this Order, unless with deposits of $2 million, operates its sole office such period is extended for good cause by the in Elba and is the only bank serving the town. Board or by the Federal Reserve Bank of Rich- It is the smallest of three banks domiciled in mond pursuant to delegated authority. Genesee County wherein it holds 11 per cent of By order of the Board of Governors, October 5, total county deposits. The nearest offices of 1971. Citizens Bank to Elba Bank are its main office in Arcade and its branch in Silver Springs, located 46 Voting for this action: Vice Chairman Robertson and 41 miles, respectively, from Elba. In the inand Governors Mitchell, Daane, Maisel, and Brimmer. Absent and not voting: Chairman Burns tervening area there are eight banking offices, and Governor Sherrill. which include branches of the three largest (Signed) TYNAN SMITH, Buffalo-based banks. Secretary of the Board. The relevant market within which the com- [SEAL] petitive effects of the proposed merger are to be Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 837 assessed is the Batavia Banking Market, which of the application. Considerations under the conencompasses an area approximately half the dis- venience and needs aspects of the proposal lend tance between Rochester and Buffalo, consisting of some support in favor of approval since con- Genesee County and the towns of Bennington, summation of the merger would provide customers Attica, Middleburg, and Covington in Wyoming of Elba Bank with a more varied range of banking County. Elba Bank is the seventh smallest of services than is presently offered them. Based upon eight banks represented in the market. The pro- the foregoing, it is the Board's judgment that conposed merger is Applicant's first entry into this summation of the proposal would be in the public market and would result in its control of only 1.9 interest and that the application should be apper cent of the market's total deposits. proved. The merging banks do not compete with one IT IS HEREBY ORDERED. On the basis of the findanother in the relevant market, and there is no ings summarized above, that said application be significant competition between other subsidiary and hereby is approved, provided that the action banks of Charter New York Corporation and Elba so approved shall not be consummated (a) before the thirtieth calendar day following the date of this Bank. Further, no substantial potential com- Order or (b) later than three months after the petition would be foreclosed by consummation of date of this Order, unless such period is extended the proposed merger considering Elba Bank's size, for good cause by the Board, or by the Federal the economy of the area, and the restrictions Research Bank of New York pursuant to deleplaced on branching into Elba by New York State gated authority. banking laws. Consummation of the proposed By order of the Board of Governors, October 5, transaction would not result in a substantial in- 1971. crease in concentration levels on a local or Statewide basis. Based upon all the facts revealed in Voting for this action: Vice Chairman Robertson the record, the Board concludes that the merger and Governors Mitchell, Daane, Maisel, and Brimmer. Absent and not voting: Chairman Burns would not have an adverse effect on competition in and Governor Sherrill. any relevant area. (Signed) TYNAN SMITH, The financial and managerial resources and Secretary of the Board. prospects of the merging banks and the resulting bank are satisfactory and consistent with approval [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
838 FEDERAL RESERVE BULLETIN • OCTOBER 1971 ORDERS UNDER SECTION 3 OF BANK HOLDING reflect holding company acquisitions and forma- COMPANY ACT tions approved by the Board through July 31, 1971.) BOATMEN'S BANCSHARES, INC., Bank ($8.7 million of deposits), the only bank ST. LOUIS, MISSOURI in O'Fallon, is located 35 miles northwest of St. Louis, and ranks sixth among the eight banks in In the matter of the application of Boatmen's St. Charles County and second among the five Bancshares, Inc., St. Louis, Missouri, for approval banks competing in its primary service area, which of acquisition of 80 per cent or more of the voting is approximated by the City of O'Fallon and enshares of Bank of O'Fallon, OTallon, Missouri. virons. Bank holds 31.7 per cent of the commercial bank deposits in its primary service area. Each ORDER APPROVING ACQUISITION OF BANK STOCK of Applicant's present subsidiary banks is located BY BANK HOLDING COMPANY more than 23 miles from Bank, and none of them There has come before the Board of Governors, appears to compete with Bank to any significant pursuant to section 3(a)(3) of the Bank Holding extent. It appears, therefore, that consummation Company Act of 1956 (12 U.S.C. 1842(a)(3)) of the proposed acquisition would not eliminate and section 222.3(a) of Federal Reserve Regula- any meaningful competition. Moreover, in light tion Y (12 CFR 222.3(a)), an application by of the facts of record, including the distances Boatmen's Bancshares, Inc. ("Applicant"), St. separating Applicant's present subsidiaries from Louis, Missouri, a registered bank holding com- Bank, Missouri's restrictive branching law, and the pany, for the Board's prior approval of the acquisi- availability of numerous banking alternatives, it tion of 80 per cent or more of the voting shares of does not appear that any significant potential com- Bank of O'Fallon ("Bank"), O'Fallon, Missouri. petition would be foreclosed by the consummation of Applicant's proposal. As required by section 3(b) of the Act, the Board gave written notice of receipt of the appli- On the basis of the record before it, the Board cation to the Commissioner of Finance for the concludes that consummation of the proposed State of Missouri, and requested his views and acquisition would not adversely affect competition recommendation. The Commissioner responded in any relevant area nor have undue adverse effects that his office had no objection to approval of the on other banks in the area involved and, in fact, application. may enhance competition in the service area by Notice of receipt of the application was pub- enabling Bank to become a more effective comlished in the Federal Register on June 26, 1971 petitor. The financial and managerial resources (36 Federal Register 12192), providing an oppor- and future prospects of Applicant, its subsidiaries, tunity for interested persons to submit comments and Bank are generally considered satisfactory and and views with respect to the proposal. A copy of consistent with approval of the application. Conthe application was forwarded to the United States siderations relating to the convenience and needs Department of Justice for its consideration. Time of the communities to be served lend some weight for filing comments and views has expired and all in support of approval of the application. Applithose received have been considered. cant proposes to expand many of Bank's existing The Board has considered the application in the services and to assist Bank in establishing several light of the factors set forth in section 3(c) of the new services, including data processing and trust Act, including the effect of the proposed acquisi- services. The residents of Bank's service area tion on competition, the financial and managerial should benefit from the added convenience resultresources and future prospects of the Applicant ing from the broader range of services offered by Bank. and the banks concerned, and the convenience and needs of the communities to be served, and finds In considering this application the Board noted that: that the Applicant's tender offer to stockholders of Applicant has three subsidiary banks with Bank is in an amount greater than twice the per aggregate deposits of $328.8 million, representing share book value. The premium is equal to 13 per 2.9 per cent of the total commercial bank deposits cent of deposits, and is greater than premiums in the State and, on the basis of deposits, is the ordinarily offered in cases that have been considsixth largest banking organization and sixth largest ered by the Board. As a matter of policy in its bank holding company in Missouri. (All banking administration of the Holding Company Act, the data are as of December 31, 1970, adjusted to Board is concerned with excessive premiums. Such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 839 premiums raise the question whether holding ORDER APPROVING ACTION TO BECOME companies are making sound business judgments; A BANK HOLDING COMPANY they also tend to weaken the earning power of There has come before the Board of Governors, holding companies. An even more serious question pursuant to section 3(a)(1) of the Bank Holding is whether a bank is being acquired because of a Company Act of 1956 (12 U.S.C. 1842(a)(1)) dominant market position that will be exploited and section 222.3(a) of Federal Reserve Regulafurther by affiliation with a strong holding comtion Y (12 CFR 222.3(a)), an application by pany. If so, the public interest would ordinarily Midwest Bancorporation (of Ohio), Inc., Wilrequire a holding company to enter the market mington, Delaware, for the Board's prior approval de novo. In the present case, however, in view of action whereby Applicant would become a bank of the size of the community and the bank involved and the Board's evaluation of other rele- holding company through the acquisition of 100 vant circumstances in the record, including the per cent of the voting shares (less directors' qualifact that another holding company has applied for fying shares) of (1) the successor by merger to a new charter in O'Fallon, the Board has con- The Midwest Bank & Trust Company, Cleveland, cluded that the premium involved, although a mat- Ohio ("Midwest Bank"), and (2) the successor by ter of concern, is not such as to require denial of merger to The Firelands Community Bank, the application. Huron, Ohio ("Firelands Bank"). The banks into which Midwest Bank and Fire- It is the Board's judgment that consummation of lands Bank are to be merged have no significance the proposed acquisition would be in the public except as a means of acquiring the voting shares interest, and that the application should be apof the banks involved. Accordingly, the proposed proved. acquisition of the shares of the successor organiza- IT IS HEREBY ORDERED, on the basis of the tions are treated herein as the proposed acquisirecord, that said application be and hereby is tions of the shares of Midwest Bank and Firelands approved for the reasons summarized above, pro- Bank. vided that the acquisition so approved shall not be consummated (a) before the thirtieth calendar As required by section 3(b) of the Act, the day following the date of this Order or (b) later Board gave written notice of receipt of the applithan three months after the date of this Order, cation to the Ohio Superintendent of Banks, and unless such period is extended for good cause by requested his views and recommendation. The the Board or by the Federal Reserve Bank of St. Superintendent of Banks offered no objection to Louis pursuant to delegated authority. approval of the application. By order of the Board of Governors, September Notice of receipt of the application was pub- 10, 1971. lished in the Federal Register on July 29, 1971 (36 Federal Register 14080), providing an opportunity Voting for this action: Vice Chairman Robertson for interested persons to submit comments and and Governors Mitchell, Daane, Maisel, Brimmer, views with respect to the proposal. A copy of the and Sherrill. Absent and not voting: Chairman Burns. application was forwarded to the United States (Signed) TYNAN SMITH, Department of Justice for its consideration. Time Secretary. for filing comments and views has expired and all those received have been considered. [SEAL] The Board has considered the application in the light of the factors set forth in section 3(c) of the MIDWEST BANCORPORATION (OF OHIO), Act, including the effect of the proposed acquisi- INC., WILMINGTON, DELAWARE tion on competition, the financial and managerial In the matter of the application of Midwest resources and future prospects of the Applicant Bancorp oration {of Ohio), Inc., Wilmington, and the banks concerned, and the convenience and Delaware, for approval of action to become a bank needs of the communities to be served, and finds holding company through the acquisition of 100 that: per cent of the voting shares (less directors' quali- Applicant is a newly-organized corporation. fying shares) of (7) the successor by merger to Upon consummation of the proposal herein. Ap- The Midwest Bank & Trust Company, Cleveland, plicant would control $41 million in deposits, Ohio, and (2) the successor by merger to The representing .19 per cent of total commercial bank Firelands Community Bank, Huron, Ohio. deposits in the State, and would become the eighth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
840 FEDERAL RESERVE BULLETIN • OCTOBER 1971 largest of the nine multi-bank holding companies record, that said application be and hereby is apoperating in Ohio. (All banking data are as of proved for the reasons summarized above, pro- December 31, 1970, adjusted to reflect holding vided that the action so approved shall not be concompany formations and acquisitions approved by summated (a) before the thirtieth calendar day the Board through August 31, 1971.) following the date of this Order or (b) later than Midwest Bank ($25.7 million deposits), the three months after the date of this Order, unless only office of which is located in downtown such period is extended for good cause by the Cleveland, operates in the Cleveland banking Board, or by the Federal Reserve Bank of Clevemarket, which is approximated by Cuyahoga, land pursuant to delegated authority. Geauga, Lake, and Lorain Counties, and controls By order of the Board of Governors, Septem- .4 per cent of the commercial bank deposits in ber 16, 1971. that market. On the basis of deposits, Midwest Voting for this action: Vice Chairman Robertson Bank is the sixteenth largest of the twenty-seven and Governors Mitchell, Maisel, and Brimmer. Absent banks in the market. and not voting: Chairman Burns and Governors Firelands Bank ($15.3 million deposits), head- Daane and Sherrill. quartered in Huron with one branch office in (Signed) TYNAN SMITH, Berlin, Ohio, primarily serves the Erie County Secretary. area. On the basis of deposits, Firelands Bank is the fifth largest of the six banks located in Erie [SEAL] County, with approximately 9 per cent of the PEOPLES MID-ILLINOIS CORPORATION, commercial bank deposits in that area. BLOOMINGTON, ILLINOIS Midwest Bank and Firelands Bank do not compete with each other to any meaningful extent, and In the matter of the application of Peoples Midthe development of such competition in the fore- Illinois Corporation, Bloomington, Illinois, for apseeable future appears unlikely. The nearest offices proval of action to become a bank holding comof the two banks are separated by a distance of pany through the acquisition of 80 per cent or more than 50 miles, with numerous banks intermore of the voting shares of Peoples Bank of vening, and Ohio law prevents either bank from Bloomington, Bloomington, Illinois. branching into the county in which the other is located. On the basis of the record before it, the ORDER APPROVING ACTION TO BECOME Board concludes that consummation of the pro- A BANK HOLDING COMPANY posal would have no adverse effect on competition in any relevant area. There has come before the Board of Governors, The financial condition of each proposed sub- pursuant to section 3(a)(1) of the Bank Holding sidiary bank appears satisfactory; both are re- Company Act of 1956 (12 U.S.C. 1842(a)(1)) garded as having competent managements and and section 222.3(a) of Federal Reserve Regulafavorable prospects. It appears that Applicant tion Y (12 CFR 222.3(a)), an application by would begin operations in satisfactory condition Peoples Mid-Illinois Corporation, Bloomington, Illinois, for the Board's prior approval of action and with competent management; Applicant's whereby Applicant would become a bank holding prospects, which are largely dependent upon those company through the acquisition of 80 per cent of its two proposed subsidiaries, also appear favoror more of the voting shares of Peoples Bank able. There is no evidence that the existing bankof Bloomington, Bloomington, Illinois ("Peoples ing needs of the communities involved are not Bank"). being met. Affiliation of the two banks, however, would increase the lending capabilities of each As required by section 3(b) of the Act, the bank by means of participation arrangements, and Board gave written notice of receipt of the apwould enable the Firelands Bank to offer trust plication to the Commissioner of Banks and Trust services. These considerations relative to the con- Companies of the State of Illinois, and requested venience and needs of the communities to be his views and recommendation. The Commisserved lend some weight toward approval. It is sioner recommended approval of the application. the Board's judgment that the proposed trans- Notice of receipt of the application was pubaction would be in the public interest and that lished in the Federal Register on July 30, 1971 the application should be approved. (36 Federal Register 14152), providing an op- IT IS HEREBY ORDERED, on the basis of the portunity for interested persons to submit com- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 841 ments and views with respect to the proposal. A day following the date of this Order or (b) later copy of the application was forwarded to the than three months after the date of this Order, United States Department of Justice for its con- unless such period is extended for good cause by sideration. Time for filing comments and views the Board or by the Federal Reserve Bank of has expired and all those received have been Chicago pursuant to delegated authority. considered. By order of the Board of Governors, Septem- The Board has considered the application in the ber 16, 1971. light of the factors set forth in section 3(c) of the Voting for this action: Vice Chairman Robertson Act, including the effect of the proposed acquisiand Governors Mitchell, Maisel, and Brimmer. Absent tion on competition, the financial and managerial and not voting: Chairman Burns and Governors resources and future prospects of the Applicant Daane and Sherrill. and the banks concerned, and the convenience and (Signed) TYNAN SMITH, needs of the communities to be served, and finds Secretary. that: Applicant is a nonoperating corporation formed [SEAL] for the purpose of acquiring Bank as a subsidiary. SOUTHEAST BANKING CORPORATION, Upon consummation of the proposal. Applicant MIAMI, FLORIDA will control .1 per cent of the total commercial bank deposits in the State. In the matter of the application of Southeast Peoples Bank ($40.5 million in deposits), lo- Banking Corporation, Miami, Florida, for apcated in Bloomington approximately 130 miles proval of the acquisition of 80 per cent or more southwest of Chicago, is the largest of 20 banks of the voting shares of First National Beach Bank, in the Bloomington area, and controls 19.5 per Jacksonville Beach, Jacksonville Beach, Florida. cent of deposits in that area. (Banking data are as of December 31, 1970; and reflect holding ORDER APPROVING ACQUISITION OF BANK STOCK company formations and acquisitions approved BY BANK HOLDING COMPANY through August 31, 1971.) As Applicant has no present operations or subsidiaries, consummation There has come before the Board of Governors, of this proposal would eliminate neither existing pursuant to section 3(a)(3) of the Bank Holding nor potential competition nor does it appear that Company Act of 1956 (12 U.S.C. 1842(a)(3)) there would be any adverse effects on any bank in and section 222.3(a) of Federal Reserve Regulathe market. tion Y (12 CFR 222.3(a)), an application by Applicant was recently organized for the pur- Southeast Banking Corporation ("Applicant"), pose of consummating the present proposal and Miami, Florida, a registered bank holding comhas not engaged in any business activities. Ap- pany, for the Board's prior approval of the acquisiplicant's management has been drawn from direc- tion of 80 per cent or more of the voting shares of tors and officers of Bank. Applicant's financial First National Beach Bank, Jacksonville Beach condition and future prospects are dependent on ("Bank"), Jacksonville Beach, Florida. those of Bank. The financial and managerial re- As required by section 3(b) of the Act, the sources and future prospects of Bank are satis- Board gave written notice of receipt of the apfactory and consistent with approval of this ap- plication to the Comptroller of the Currency, and plication. Although consummation of the proposal requested his views and recommendation. The would not have any immediate effects on the con- Comptroller recommended approval of the apvenience and needs of the community, considera- plication. tions related to these factors are consistent with Notice of receipt of the application was pubapproval. It is the Board's judgment that con- lished in the Federal Register on July 10, 1971 summation of the proposal would be in the pub- (36 Federal Register 13004), providing an oplic interest and that the application should be portunity for interested persons to submit comapproved. ments and views with respect to the proposed IT IS HEREBY ORDERED, on the basis of the rec- transaction. A copy of the application was forord, that said application be and hereby is ap- warded to the United States Department of Justice proved for the reasons summarized above, pro- for its consideration. The time for filing comvided that the action so approved shall not be ments and views has expired and all those reconsummated (a) before the thirtieth calendar ceived have been considered by the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
842 FEDERAL RESERVE BULLETIN • OCTOBER 1971 The Board has considered the application in the ville Beach community apparently are being light of the factors set forth in section 3(c) of the served adequately by the existing banking institu- Act, including the effect of the proposed acquisi- tions. However, there appears to be a growing tion on competition, the financial and managerial need for trust services in the immediate area Bank resources and future prospects of Applicant and serves, which are not conveniently available to the the banks concerned, and the convenience and Jacksonville Beach community. Applicant proneeds of the communities to be served and finds poses to assist Bank in establishing a trust departthat: ment. Considerations under the convenience and Applicant presently controls 13 banks with ag- needs aspects of this proposal are consistent with gregate deposits of $1,050 million, representing approval of the application. It is the Board's judg- 7.5 per cent of total commercial bank deposits ment that consummation of the proposed acquisiheld by Florida's banks, and is the State's second tion would be in the public interest and that the largest banking organization. (All banking data application should be approved. are as of December 31, 1970, and reflect holding IT IS HEREBY ORDERED, on the basis of the company formations and acquisitions approved by Board's findings and reasons summarized above, the Board through July 31, 1971.) Applicant's ac- that said application be and hereby is approved, quisition of Bank, with deposits of approximately provided that the acquisition so approved shall not $22 million, would not represent a significant in- be consummated (a) before the thirtieth calendar crease in Applicant's share of total deposits in the day following the date of this Order or (b) later State. than three months after the date of this Order, Bank is located at Jacksonville Beach, a coastal unless such time be extended for good cause by community in Duval County, approximately 20 the Board, or by the Federal Reserve Bank of miles east of Jacksonville. On the basis of de- Atlanta pursuant to delegated authority. posits, Bank is the seventh largest of 16 banking By order of the Board of Governors, Septemorganizations in the Jacksonville banking market, ber 16, 1971. which is approximated by Duval County, and Voting for this action: Vice Chairman Robertson holds 1.7 per cent of the commercial bank deand Governors Mitchell, Maisel, and Brimmer. Abposits in this market. Acquisition of Bank by sent and not voting: Chairman Burns and Governors Applicant would result in Applicant's control of Daane and Sherrill. 3.2 per cent of the Jacksonville market as the (Signed) TYNAN SMITH, sixth largest banking organization operating Secretary. therein. No significant competition appears to exist between any of Applicant's subsidiary banks [SEAL] and Bank. The closest of Applicant's subsidiaries to Bank is located in downtown Jacksonville, ap- MIDLAND INVESTMENT CORPORATION, proximately 17 miles west of Bank; and, on the CASPER, WYOMING basis of the facts of record, notably, Florida's In the matter of the application of Midland restrictive branching laws and the fact that the Investment Corporation, Casper, Wyoming, for 17-mile intervening area contains a number of approval of action to become a bank holding banks, an intra-coastal waterway and a 10-mile company through the acquisition of at least 80 per undeveloped area, it appears that meaningful fucent of the voting shares of Hilltop National Bank, ture competition between Applicant's subsidiaries Casper, Wyoming. and Bank is not likely to develop. Based upon the record, the Board concludes ORDER APPROVING ACTION TO BECOME that consummation of the proposed acquisition A BANK HOLDING COMPANY would have no significant adverse effect on competition in any relevant area. The financial condi- There has come before the Board of Governors, tions and managerial resources of Applicant and pursuant to section 3(a)(1) of the Bank Holding its subsidiary banks are regarded as generally Company Act of 1956 (12 U.S.C. 1842(a)(1)) satisfactory, and the prospects for each appear and section 222.3(a) of Federal Reserve Regulafavorable. Bank's financial condition appears gen- tion Y (12 CFR 222.3(a)), an application by erally satisfactory; and Applicant has stated that Midland Investment Corporation, Casper, Wyoit will provide capital and personnel to Bank as ming, for the Board's prior approval of action needed. The major banking needs of the Jackson- whereby Applicant would become a bank holding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 843 company through the acquisition of at least 80 per than normally preferred. Applicant's plan for sercent of the voting shares of Hilltop National Bank vicing its debt appears to be reasonable and no ("Bank"), Casper, Wyoming. impairment of Bank's financial condition seems As required by section 3(b) of the Act, the likely. Applicant's proposal to strengthen the Board gave written notice of receipt of the ap- capital structure of Bank lends weight in favor of plication to the Comptroller of the Currency, and approval of the application. It is the Board's judgrequested his views and recommendation. The ment that the proposed transaction would be in Comptroller recommended approval of the ap- the public interest and the application should be plication. approved. Notice of receipt of the application was pub- IT IS HEREBY ORDERED, on the basis of the reclished in the Federal Register on July 17, 1971 ord, that said application be and hereby is ap- (36 Federal Register 13300), providing an op- proved for the reasons summarized above, proportunity for interested persons to submit com- vided that the acquisition so approved shall not be ments and views with respect to the proposal. A consummated (a) before the thirtieth calendar day copy of the application was forwarded to the following the date of this Order or (b) later than United States Department of Justice for its con- three months after the date of this Order, unless sideration. Time for filing comments and views such period is extended for good cause by the has expired and all those received have been Board or by the Federal Reserve Bank of Kansas considered. City pursuant to delegated authority. The Board has considered the application in By order of the Board of Governors, Septemthe light of the factors set forth in section 3(c) ber 16, 1971. of the Act, including the effect of the proposed Voting for this action: Vice Chairman Robertson acquisition on competition, the financial and and Governors Mitchell, Maisel, and Brimmer. Absent managerial resources and future prospects of the and not voting: Chairman Burns and Governors Applicant and the banks concerned, and the con- Daane and Sherrill. venience and needs of the communities to be (Signed) TYNAN SMITH, served, and finds that: Secretary. Applicant is a nonoperating corporation formed for the purpose of acquiring Bank (deposits of [SEAL] $7.2 million) as a subsidiary. Bank is the fourth largest of six banks in the Casper banking market T G BANCSHARES CO., and holds 4.3 per cent of area deposits. (All ST. LOUIS, MISSOURI banking data are as of December 31, 1970, and In the matter of the application of T G Bancreflect holding company formations and acquisishares Co., St. Louis, Missouri, for approval of tions approved through July 31, 1971.) acquisition of 99.8 per cent or more of the voting Since Applicant has no present operations or shares of Continental Bank & Trust Company, subsidiaries and since the proposed acquisition Richmond Heights, Missouri. involves only a corporate reorganization in the nature of a transfer of ownership of Bank from ORDER APPROVING ACQUISITION OF BANK STOCK individuals to a holding company, consummation BY BANK HOLDING COMPANY of the proposal would eliminate neither existing nor potential competition and would not appear There has come before the Board of Governors, to have any adverse effects on any other banks in pursuant to section 3(a)(3) of the Bank Holding the area involved. Thus, factors related to com- Company Act of 1956 (12 U.S.C. 1842(a)(3)) petition are consistent with approval. and section 222.3(a) of Federal Reserve Regula- Applicant has no immediate plans to make any tion Y (12 CFR 222.3(a)), an application by new services available, but has stated that it will T G Bancshares Co., St. Louis, Missouri, a bank augment the capital structure of Bank, which holding company, for the Board's prior approval would enable Bank more adequately to serve its of the acquisition of 99.8 per cent or more of the customers. Applicant has arranged to borrow voting shares of Continental Bank & Trust Com- $300,000 from an unaffiliated bank which Ap- pany, Richmond Heights, Missouri ("Bank"). plicant proposes to use to strengthen Bank's fi- As required by section 3(b) of the Act, the nancial condition. Although, as a result of this Board gave written notice of receipt of the aploan, Applicant's debt to equity ratio is higher plication to the Commissioner of Finance for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
844 FEDERAL RESERVE BULLETIN • OCTOBER 1971 State of Missouri, and requested his views and have an adverse effect on competition in any recommendation. The Commissioner responded relevant area. Considerations relating to the fithat his office had no objection to approval of the nancial and managerial resources and prospects appHcation. are regarded as consistent with approval as they Notice of receipt of the appHcation was pub- relate to Applicant and its subsidiaries, and lend lished in the Federal Register on July 24, 1971 strong weight in support of approval as they re- (36 Federal Register 13820), providing an op- late to Bank, since Applicant would provide Bank portunity for interested persons to submit com- with additional qualified management personnel ments and views with respect to the proposal. A and strengthen Bank's capital structure. Considcopy of the application was forwarded to the erations relating to the convenience and needs of United States Department of Justice for its con- the communities to be served lend some additional sideration. Time for filing comments and views weight in support of approval; Applicant proposes has expired and all those received have been to expand Bank's trust operations and to increase considered. its lending capabilities through participations with The Board has considered the application in the Applicant's lead bank in St. Louis. It is the light of the factors set forth in section 3(c) of the Board's judgment that the proposed transaction Act, including the effect of the proposed acquisi- would be in the public interest, and that the tion on competition, the financial and managerial application should be approved. resources and future prospects of the Applicant IT IS HEREBY ORDERED, on the basis of the and the banks concerned, and the convenience and record, that said application be and hereby is needs of the communities to be served, and finds approved for the reasons summarized above, prothat: vided that the action so approved shall not be Applicant, the eighth largest bank holding com- consummated (a) before the thirtieth calendar pany and the ninth largest banking organization in day following the date of this Order or (b) later Missouri, has two subsidiary banks with $130.4 than three months after the date of this Order, million in deposits, representing approximately unless such period is extended for good cause by 1.1 per cent of the total commercial bank deposits the Board or by the Federal Reserve Bank of in the State. (All banking data are as of Decem- St. Louis pursuant to delegated authority. ber 31, 1970, adjusted to reflect holding company By order of the Board of Governors, Septemformations and acquisitions approved by the ber 16, 1971. Board through August 31, 1971.) Consummation Voting for this action: Vice Chairman Robertson of the proposal herein would increase Applicant's and Governors Mitchell, Maisel, and Brimmer. Absent share of deposits only slightly, and its ranking and not voting: Chairman Burns and Governors among the State's other banking organizations Daane and Sherrill. would remain the same. (Signed) TYNAN SMITH, Bank ($13.7 million deposits), with 2 per cent Secretary. of the area's deposits, ranks fourteenth of the eighteen banks located in its primary service area, [SEAL] which is approximated by the east central portion of St. Louis County and a small segment of the FIDELITY AMERICAN BANKSHARES, INC., City of St. Louis. Applicant's two subsidiary banks LYNCHBURG, VIRGINIA are located approximately seven and twenty-nine In the matter of the application of Fidelity miles from Bank, and neither competes with Bank American Bankshares, Inc., Lynchburg, Virginia, to any significant extent. Moreover, in light of for approval of acquisition of 80 per cent or more geographical barriers, Missouri's restrictive of the voting shares of Metompkin Bank and Trust branching law, and the presence of numerous Company, Parksley, Virginia. alternative banking facilities, it appears unlikely that consummation of the proposal herein would foreclose any significant potential competition. As ORDER APPROVING ACQUISITION OF BANK STOCK a result of its affiliation with Applicant, Bank BY BANK HOLDING COMPANY should be able to compete more effectively with There has come before the Board of Governors, the larger banks in its service area. pursuant to section 3(a)(3) of the Bank Holding Based upon the foregoing, the Board concludes Company Act of 1956 (12 U.S.C. 1842(a)(3)) that consummation of the proposal would not and section 222.3(a) of Federal Reserve Regula- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 845 tion Y (12 CFR 222.3(a)), an application by Bank operates its main office in Parksley, one Fidelity American Bankshares, Inc., Lynchburg, branch in Bloxom four miles north of the main Virginia, a registered bank holding company, for office, and a second branch in Oak Hall 14 miles the Board's prior approval of the acquisition of northeast of Parksley. All offices are located in 80 per cent or more of the voting shares of Accomack County, on Virginia's eastern shore Metompkin Bank and Trust Company, Parksley, between the Chesapeake Bay and the Atlantic Virginia ("Bank"). Ocean. Bank is one of six banking institutions in As required by section 3(b) of the Act, the Accomack County (Bank's relevant market), Board gave written notice of receipt of the ap- where it ranks fifth in size with 11.7 per cent of plication to the Virginia Commissioner of Bank- area deposits. Applicant's subsidiary office closest ing, and requested his views and recommendation. to Bank is located 85 miles away via two bridge- The Commissioner recommended approval. tunnel toll facilities, and apparently no significant Notice of receipt of the appHcation was pub- present competition exists between Bank and this Hshed in the Federal Register on July 20, 1971 office, or any of Applicant's other offices. It also (36 Federal Register 13350), providing an op- appears unlikely that consummation of this proportunity for interested persons to submit com- posal would foreclose potential competition bements and views with respect to the proposal. A cause of Virginia's restrictive branching laws, the copy of the application was forwarded to the wide separation between Applicant's offices and United States Department of Justice for its con- Bank, and the presence of many other banking sideration. Time for filing comments and views offices in the intervening area. Based on the forehas expired and all those received have been going, and the record before it, the Board conconsidered. cludes that consummation of the proposed ac- The Board has considered the application in the quisition would not have an adverse effect on light of the factors set forth in section 3(c) of the competition in any relevant market. Act, including the effect of the proposed acquisi- The financial condition and management of Aption on competition, the financial and managerial plicant and its subsidiaries are satisfactory and the resources and future prospects of the Applicant prospects of each are favorable. On the contrary, and the banks concerned, and the convenience however, the financial condition of Bank is unand needs of the communities to be served, and satisfactory and the capital base of the institution finds that: can provide only a limited margin of protection Applicant, the eighth largest banking organiza- for the safety of depositors' funds. Applicant has tion in Virginia, controls five banks which hold made a commitment to supply adequate capital if combined deposits of approximately $310.7 mil- this proposal is authorized. Thus, considerations lion, representing 3.9 per cent of the total com- relating to the banking factors weigh strongly in mercial bank deposits held by Virginia banks. favor of approval of the application. (All banking data are as of December 31, 1970, Although there is no indication that present adjusted to reflect holding company formations banking needs of the area are not being adequately and acquisitions through July 31, 1971.) Upon served at the present time, it is apparent that acquisition of Metompkin Bank and Trust Com- consummation of the proposal would not only pany ($6.2 million deposits). Applicant would strengthen the Bank but provide the managerial increase its share of deposits in the State by only skill to offer a wide range of banking services that 0.1 percentage point, representing no significant would serve to benefit the public. Considering the increase in Applicant's control of deposits in the possible loss of a banking institution in the area, State, or change in its present ranking. In a sepa- the convenience and needs of the community rate application filed concurrently with the instant weigh heavily in favor of approval of the applicamatter, Applicant proposes to acquire 80 per cent tion. It is the Board's judgment that consummaor more of the voting shares of The Culpeper tion of the proposed transaction would be in the National Bank, Culpeper, Virginia. Affiliation of public interest, and that the application should be both banks would increase Applicant's share of the approved. total Virginia commercial bank deposits to 4.3 per IT IS HEREBY ORDERED, on the basis of the reccent and would not, therefore, have any significant ord, that said application be and hereby is effect on the concentration of banking resources in approved for the reasons summarized above, pro- Virginia or on Applicant's State-wide competitive vided that the action so approved shall not be conposition. summated (a) before the thirtieth calendar day Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
846 FEDERAL RESERVE BULLETIN • OCTOBER 1971 following the date of this Order or (b) later than The Board has considered the application in the three months after the date of this Order, unless light of the factors set forth in section 3(c) of the such period is extended for good cause by the Act, including the effect of the proposed acquisi- Board or by the Federal Reserve Bank of Rich- tion on competition, the financial and managerial mond pursuant to delegated authority. resources and future prospects of the Applicant By order of the Board of Governors, Septem- and the banks concerned, and the convenience and ber 16, 1971. needs of the communities to be served, and finds that: Voting for this action: Vice Chairman Robertson Applicant, the eighth largest banking organizaand Governors Mitchell, Maisel, and Brimmer. Absent and not voting: Chairman Bums and Governors tion in Virginia, controls five banks which hold Daane and Sherrill. combined deposits of approximately $310.7 mil- (Signed) TYNAN SMITH, lion, representing 3.9 per cent of the total com- Secretary, mercial bank deposits held by Virginia banks. (All banking data are as of December 31, 1970, [SEAL] adjusted to reflect holding company formations and acquisitions through July 31, 1971.) Upon acquisition of The Culpeper National Bank ($22.1 million deposits). Applicant would increase its share of deposits in the State by only In the matter of the application of Fidelity 0.3 percentage points, representing no significant American Bankshares, Inc., Lynchburg, Virginia, increase in Applicant's control of deposits in the for approval of acquisition of 80 per cent or more State, or change in its present ranking. In a sepaof the voting shares of The Culpeper National rate application filed concurrently with the instant Bank, Culpeper, Virginia. matter. Applicant proposes to acquire 80 per cent or more of the voting shares of Metompkin Bank ORDER APPROVING ACQUISITION OF BANK STOCK and Trust Company, Parksley, Virginia. Affilia- BY BANK HOLDING COMPANY tion of both banks would increase Applicant's There has come before the Board of Governors, share of the total Virginia commercial bank depursuant to section 3(a)(3) of the Bank Holding posits to 4.3 per cent and would not, therefore, Company Act of 1956 (12 U.S.C. 1842(a)(3)) have any significant effect on the concentration of and section 222.3(a) of Federal Reserve Regula- banking resources in Virginia or on Applicant's tion Y (12 CFR 222.3(a)), an application by State-wide competitive position. Fidelity American Bankshares, Inc., Lynchburg, Bank operates its main office, together with two Virginia, a registered bank holding company, for branches, in the town of Culpeper. Bank's service the Board's prior approval of the acquisition of area includes all of Culpeper County and fringe 80 per cent or more of the voting shares of The areas of the bordering counties of Rappahannock, Culpeper National Bank, Culpeper, Virginia Madison, Fauquier and Orange. Six banking or- ("Bank"). ganizations compete within this service area, the As required by section 3(b) of the Act, the largest of which controls 25.9 per cent of the Board gave written notice of receipt of the ap- service area deposits. Bank ranks second in size, plication to the Comptroller of the Currency, and with 24.5 per cent of such deposits, although requested his views and recommendation. The another Culpeper bank is of comparable size, Comptroller recommended approval of the ap- holding 24.4 per cent. A branch of the second plication. largest banking organization in Virginia ranks Notice of receipt of the application was pub- fourth in area deposits with 15.2 per cent, while lished in the Federal Register on July 20, 1971 the two remaining institutions are rural banks (36 Federal Register 13350), providing an op- located 12 and 15 miles from Culpeper. Because portunity for interested persons to submit com- of the number of banking alternatives available ments and views with respect to the proposal. A over a relatively widespread and essentially rural copy of the application was forwarded to the area, it does not appear that consummation of United States Department of Justice for its con- Applicant's proposed acquisition would have any sideration. Time for filing comments and views detrimental effect on other competing banks. has expired and all those received have been Applicant's subsidiary office closest to Bank is considered. located 90 miles southwest of Culpeper. There is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 847 no meaningful existing competition between Bank or more of the voting shares of Linwood State and this office, or any of Applicant's other offices. Bank, Kansas City, Missouri. It also appears unlikely that consummation of this proposal would preclude potential competition in ORDER APPROVING ACTION TO BECOME the light of the facts of record, notably, the dis- A BANK HOLDING COMPANY tances involved and the unlikelihood that Applicant would enter Bank's market de novo. Based There has come before the Board of Governors, on the foregoing, and the record before it, the pursuant to section 3(a)(1) of the Bank Holding Board concludes that consummation of the pro- Company Act of 1956 (12 U.S.C. 1842(a)(1)) posed acquisition would not have an adverse effect and section 222.3(a) of Federal Reserve Reguon competition in any relevant market. lation Y (12 CFR 222.3(a)), an application by The banking factors, as they relate to Appli- American Bancorporation, Inc., Kansas City, Miscant, its subsidiaries, and Bank are satisfactory souri, for the Board's prior approval of action and consistent with approval of the application. whereby Applicant would become a bank holding Considerations relating to the convenience and company through the acquisition of 90 per cent needs of the area lend some weight toward ap- or more of the voting shares of Linwood State proval. Although the more important banking Bank, Kansas City, Missouri ("Bank"). needs of the area are being served at the present As required by section 3(b) of the Act, the time, affiliation of Bank with Applicant will in- Board gave written notice of receipt of the apcrease Bank's loan limits, enable Bank to meet the plication to the Missouri Commissioner of Fineed for mortgages, provide a broader range of nance, and requested his views and recommendaloans, and achieve internal operating economies tion. The Commissioner responded that his office which could ultimately benefit its customers. It had no objection to approval of the application. is the Board's judgment that consummation of the Notice of receipt of the application was pubproposed transaction would be in the public inter- lished in the Federal Register on July 24, 1971 est, and that the application should be approved. (36 Federal Register 13820), providing an op- IT IS HEREBY ORDERED, on the basis of the rec- portunity for interested persons to submit comord, that said application be and hereby is ap- ments and views with respect to the proposal. A proved for the reasons summarized above, pro- copy of the application was forwarded to the vided that the action so approved shall not be United States Department of Justice for its conconsummated (a) before the thirtieth calendar sideration. Time for filing comments and views day following the date of this Order or (b) later has expired and all those received have been than three months after the date of this Order, considered. unless such period is extended for good cause by The Board has considered the application in the the Board or by the Federal Reserve Bank of light of the factors set forth in section 3(c) of the Richmond pursuant to delegated authority. Act, including the effect of the proposed acquisi- By order of the Board of Governors, Septem- tion on competition, the financial and managerial ber 16, 1971. resources and future prospects of the Applicant and the bank concerned, and the convenience and Voting for this action: Vice Chairman Robertson needs of the communities to be served, and finds and Governors Mitchell, Maisel, and Brimmer. Absent and not voting: Chairman Burns and Governors that: Daane and Sherrill. Applicant, a nonoperating corporation, was (Signed) TYNAN SMITH, formed for the express purpose of acquiring Bank Secretary. ($18.9 million deposits). (All banking data are as of December 31, 1970.) Members of the Price [SEAL] family directly or indirectly own approximately 95 per cent of the voting shares of Bank. The AMERICAN BANCORPORATION, INC., proposed transaction is essentially a corporate re- KANSAS CITY, MISSOURI organization in which the ownership of Bank will be realigned among its major stockholders. Inas- In the matter of the application of American Bancorporation, Inc., Kansas City, Missouri, for much as Applicant has no present operations or approval of action to become a bank holding subsidiaries, consummation of the proposal would company through the acquisition of 90 per cent not alter existing banking competition nor sig- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
848 FEDERAL RESERVE BULLETIN • OCTOBER 1971 nificantly affect potential competition. Nor does GALBANK, INC., AND it appear that there would be any adverse effects UNITED STATES BANCSHARES, INC., on any bank in the area. GALVESTON, TEXAS The financial and managerial resources and In the matter of the applications of Gal bank, future prospects of Bank are satisfactory and Inc., and its wholly-owned subsidiary, United consistent with approval of the application. In States National Bancshares, Inc., both of Galvesacquiring Bank, Applicant will incur a substantial ton, Texas, for approval of acquisition of 61.15 debt in relation to its net worth, which will reper cent or more of the voting shares of Sugar quire an extended repayment period. Although Land State Bank, Sugar Land, Texas. long term acquisition debt is a matter of concern to the Board, the particular facts of this case do ORDER APPROVING ACQUISITION OF BANK STOCK not indicate the financial stability of the holding BY BANK HOLDING COMPANIES company or the bank will be weakened as a result thereof. Bank is well capitalized and its past earn- There has come before the Board of Governors, ings indicate that Applicant will be able to readily pursuant to section 3(a)(3) of the Bank Holding service the debt from future earnings without Company Act of 1956 (12 U.S.C. 1842(a)(3)) adversely affecting the condition of Bank. Fur- and section 222.3(a) of Federal Reserve Regulation Y (12 CFR 222.3(a)), applications by Galthermore, Applicant indicates that it will not pay bank, Inc. ("Galbank"), and its wholly-owned any dividends as long as the debt is outstanding subsidiary. United States National Bancshares, and that the dividends of Bank will be limited to Inc. ("National"), for the Board's prior approval the amount necessary to service the debt. In light of the acquisition of 61.15 per cent or more of the of these considerations, the Board does not convoting shares of Sugar Land State Bank, Sugar sider the acquisition debt in this case to be such as Land, Texas ("Bank"). The acquisition will be to require denial of the application. made by National and as a result Galbank will Consummation of the proposal would have no indirectly acquire voting shares of the Bank. immediate effect on the convenience and needs of As required by section 3(b) of the Act, the the community involved, but improved services Board gave written notice of receipt of the apmay be provided in the future because of the more plications to the Texas Commissioner of Banking flexible corporate structure of the holding comand requested his views and recommendation. The pany. It is the Board's judgment that the trans- Commissioner recommended approval of the action would be in the public interest, and that the proposal. application should be approved. Notice of receipt of the applications was pub- IT IS HEREBY ORDERED, on the basis of the lished in the Federal Register on August 3, 1971 record, that said application be and hereby is (36 Federal Register 14284 and 14286), providapproved for the reasons summarized above, proing an opportunity for interested persons to subvided that the action so approved shall not be mit comments and views with respect to the consummated (a) before the thirtieth calendar proposal. A copy of each application was forday following the date of this Order or (b) later warded to the United States Department of Justice than three months after the date of this Order, for its consideration. Time for filing comments unless such period is extended for good cause by and views has expired and all those received have the Board, or by the Federal Reserve Bank of been considered. Kansas City pursuant to delegated authority. The Board has considered the applications in By order of the Board of Governors, Septemthe light of the factors set forth in section 3(c) ber 21, 1971. of the Act, including the effect of the proposed acquisition on competition, the financial and Voting for this action: Vice Chairman Robertson and Governors Mitchell, Daane, Maisel, Brimmer, managerial resources and future prospects of the and Sherriil. Absent and not voting: Chairman Burns. Applicant and the banks concerned, and the convenience and needs of the communities to be (Signed) TYNAN SMITH, served, and finds that: Secretary. Galbank, through National, controls one bank with deposits of $44.8 million representing ap- [SEAL] Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 849 proximately .2 per cent of commercial bank de- Voting for this action: Vice Chairman Robertson posits in Texas, (All banking data are as of and Governors Mitchell, Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns. December 31, 1970, adjusted to reflect holding company formations and acquisitions approved by (Signed) TYNAN SMITH, the Board through August 31, 1971.) Acquisition Secretary. of Bank (deposits of $10.0 million) would not [SEAL] materially affect Applicants' share of deposits in the State. BANKS OF IOWA, INC., Bank is the second largest of eight banks serv- CEDAR RAPIDS, IOWA ing the eastern portion of Fort Bend County and the southwestern edge of Houston, with control of In the matter of the application of Banks of approximately 18 per cent of the area deposits. Iowa, Inc., Cedar Rapids, Iowa, for approval of Applicants' bank is located 50 miles southeast of acquisition of 80 per cent or more of the voting Bank in Galveston and there is little existing shares of Union Bank and Trust Company, competition between the two. Due to the distances Ottumwa, Iowa. involved, the presence of intervening banks, and the Texas prohibition against branching, there is ORDER APPROVING ACQUISITION OF BANK STOCK also little probability of future competition de- BY BANK HOLDING COMPANY veloping between the subsidiary and Bank. Considering these factors and others of record, the There has come before the Board of Governors, Board concludes that consummation of the pro- pursuant to section 3(a) (3) of the Bank Holding posed acquisition would not adversely affect com- Company Act of 1956 (12 U.S.C. 1842(a)(3)) petition in any relevant area. In fact, acquisition and section 222.3(a) of Federal Reserve Reguof Bank by Applicants may serve to enhance com- lation Y (12 CFR 222.3(a)), an application by petition since it would result in the first ownership Banks of Iowa, Inc., Cedar Rapids, Iowa, for the of a Houston area bank by a holding company Board's prior approval of the acquisition of 80 per located outside of Houston. cent or more of the voting shares of Union Bank On the record before the Board, considerations and Trust Company, Ottumwa, Iowa ("Bank"). relating to the financial condition, management As required by section 3(b) of the Act, the Board gave written notice of receipt of the apand prospects of Applicants, their subsidiaries, plication to the Department of Banking of the and Bank are consistent with approval of the State of Iowa and requested its views and recapplications. Convenience and needs of banking ommendation. The Superintendent of Banking of customers in the area will be advanced through the State of Iowa recommended approval of the consummation of the proposed acquisition since application. Applicants will be able to provide more extensive services such as increased commercial loan capa- Notice of receipt of the application was pubbilities, interim construction financing, and greater lished in the Federal Register on June 15, 1971 consumer credit and trust services. It is the (36 Federal Register 11538), providing an opportunity for interested persons to submit com- Board's judgment that the proposed transaction ments and views with respect to the proposal. A would be in the public interest and that the apcopy of the application was forwarded to the plications should be approved. United States Department of Justice for its con- IT IS HEREBY ORDERED, on the basis of the recsideration. Time for filing comments and views ord, that said applications be and hereby are has expired and all those received have been approved for the reasons summarized above, proconsidered. vided that the action so approved shall not be con- IT IS HEREBY ORDERED, on the basis of the recsummated (a) before the thirtieth calendar day ord, that said application be and hereby is apfollowing the date of this Order or (b) later than proved for the reasons set forth in the Board's three months after the date of this Order, unless Statement of this date, provided that the action such period is extended for good cause by the so approved shall not be consummated (a) before Board, or by the Federal Reserve Bank of Dallas the thirtieth calendar day following the date of pursuant to delegated authority. this Order, or (b) later than three months after By order of the Board of Governors, Septem- the date of this Order, unless such period is exber 21, 1971. tended for good cause by the Board or by the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
850 FEDERAL RESERVE BULLETIN • OCTOBER 1971 Federal Reserve Bank of Chicago pursuant to controls one bank. The Merchants National Bank delegated authority. of Cedar Rapids ("Merchants"), with deposits of By order of the Board of Governors, Septem- approximately $161 million, representing 2.4 per ber 21, 1971. cent of the total commercial bank deposits in the State. (All banking data are as of December 31, Voting for this action: Vice Chairman Robertson 1970, and reflect holding company formations and and Governors Mitchell, Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns. acquisitions approved through August 31, 1971.) Applicant's acquisition of Union Bank (about (Signed) TYNAN SMITH, $44 million in deposits) would increase Appli- Secretary. cant's share of deposits in Iowa by .7 percentage [SEAL] points and result in Applicant's becoming the fourth largest banking organization and bank STATEMENT holding company in Iowa. Banks of Iowa, Inc., Cedar Rapids, Iowa ("Ap- Union Bank is the largest of four banks located plicant"), a bank holding company, has applied in Wapello County, the relevant market area, with to the Board of Governors, pursuant to section 54.4 per cent of deposits in the market. The closest 3(a)(3) of the Bank Holding Company Act of office of Merchants to Union Bank is approxi- 1956 (12 U.S.C. 1842 (a)(3)), for prior ap- mately 63 miles away and neither bank obtains a proval of the acquisition of 80 per cent or more significant amount of deposits or loans from the of the voting shares of Union Bank and Trust other's market. On the facts of record, notably, Company, Ottumwa, Iowa ("Bank"). the distance involved, the large number of banks Views and recommendation of supervisory au- in the intervening area, and the State's restrictive thority. As required by section 3(b) of the Act, branching law, there appears to be little likelihood the Board notified the Department of Banking of that significant competition between the two banks the State of Iowa of receipt of the application and would develop in the future. requested its views and recommendation thereon. The Board has considered a report of the De- The Superintendent of Banking of the State of partment of Justice which concluded that "The Iowa recommended approval of the proposed overall effect of this transaction on competition acquisition. would, therefore, be adverse." The Department advised that no effect on existing competition be- Statutory considerations. Section 3(c) of the Act provides that the Board shall not approve an tween Merchants and Union Bank could be acquisition that would result in a monopoly or anticipated from consummation of the proposal would be in furtherance of any combination or herein but that potential competition between conspiracy to monopolize or to attempt to mo- Applicant and Bank would be eliminated because nopolize the business of banking in any part of Applicant could enter the Ottumwa area market the United States. Nor may the Board approve de novo or by acquiring a smaller bank, or Union a proposed acquisition the effect of which, in any Bank could organize a bank holding company and section of the country, may be substantially to enter the Cedar Rapids market to become a comlessen competition, or to tend to create a mo- petitor of Applicant's. nopoly, or which in any other manner would be Entry into the Wapello County market on a de in restraint of trade, unless the Board finds that novo basis does not appear to be attractive. The the anticompetitive effects of the proposed trans- evidence shows that the population of Wapello action are clearly outweighed in the public interest County declined by 8.6 per cent over the past by the probable effect of the transaction in meeting decade, and it is expected that the county will the convenience and needs of the communities to not experience more than moderate economic be served. In each case, the Board is required to growth in the near future. Additionally, the prestake into consideration the financial and mana- ent population per banking office, and the ratio gerial resources and future prospects of the bank of deposits to banking offices, in the market area holding company and the banks concerned, and are not attractive for new entry. the convenience and needs of the communities to There appears to be little likelihood of Applibe served. cant's acquiring a smaller bank in the Wapello Competitive effect of proposed transaction. Ap- market than Union Bank. Applicant has stated plicant, the fifth largest banking organization and that, of the three banks in Ottumwa, the second fourth largest bank holding company in Iowa, largest bank (26.8 per cent of market deposits) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 851 in the market area is not available because of that years. Affiliation with Applicant would expand bank's long-existing ties with a large Des Moines Bank's effective lending limit which should assist bank, and the apparent disinterest of the con- the community in acquiring and servicing new trolling shareholders to affiliate with Applicant; industrial and commercial enterprises. Applicant and that the third largest bank (15.9 per cent of proposes to ensure capable management and to market deposits) which is family-owned and con- make available to Bank the investment knowledge trolled appears to have no interest in selling to of Applicant's present subsidiary bank. Consideraor in joining with Applicant or any other bank tions related to the convenience and needs of the holding company. communities lend weight for approval of the Consummation of the proposal would eliminate application. Bank as a potential lead bank in a regional bank Summary and conclusion. On the basis of all holding company; however, Union Bank's top the relevant facts contained in the record, and in management is near retirement age and the bank light of the factors set forth in section 3(c) of the at present does not appear to have the manage- Act, it is the Board's judgment that the proposed ment depth to become the lead bank of a holding transaction would be in the public interest, and company. that the application should be approved. Although Union Bank is the largest in the relevant market area, its rate of growth during the last FIDELITY AMERICAN BANKSHARES, INC., five years has been considerably less than that of LYNCHBURG, VIRGINIA any of the other banks in Wapello County, and Bank's share of the market has declined from 60 In the matter of the application of Fidelity to 54 per cent. Thus, the other banks in the area American Bankshares, Inc., Lynchburg, Virginia, have been successful in competing with Bank, and for approval of acquisition of 80 per cent or more it is believed that consummation of the proposal of the voting shares of Peoples Bank of Gretna, would not have any significant adverse effect on Gretna, Virginia. any of the competing banks. On the basis of the record before it, the Board ORDER DENYING ACQUISITION OF BANK STOCK concludes that consummation of the proposal BY BANK HOLDING COMPANY would not result in a monopoly, nor be in furtherance of any combination, conspiracy or There has come before the Board of Governors, attempt to monopolize the business of banking in pursuant to section 3(a)(3) of the Bank Holding any part of the United States and would not Company Act of 1956 (12 U.S.C. 1842(a)(3)) restrain trade, substantially lessen competition, or and section 222.3(a) of Federal Reserve Regulatend to create a monopoly in any section of the tion Y (12 CFR 222.3(a)), an application by country. Fidelity American Bankshares, Inc., Lynchburg, Financial and managerial resources and future Virginia, a registered bank holding company, for prospects. The financial and managerial resources the Board's prior approval of the acquisition of and future prospects of Applicant, its subsidiary 80 per cent or more of the voting shares of Peoples bank and Bank are satisfactory. However, Bank's Bank of Gretna, Gretna, Virginia ("Bank"). top management is near retirement age and As required by section 3(b) of the Act, the management depth is lacking. It will be necessary Board gave written notice of receipt of the applicafor Bank to have an available source of qualified tion to the Virginia Commissioner of Banking, and management personnel if it is to continue to requested his views and recommendation. The assist in the development of the Ottumwa area. Commissioner recommended approval of the ap- Applicant's ability to provide for management as plication. required lends weight in favor of approval. Notice of receipt of the application was pub- Convenience and needs of the communities in- lished in the Federal Register on July 20, 1971 (36 volved. As stated above, Wapello County's econ- Federal Register 13350), providing an opportunity omy has experienced difficulties in recent years for interested persons to submit comments and and prospects for the near future are uncertain. views with respect to the proposal. A copy of the However, efforts are being made to revitalize the application was forwarded to the United States area's lagging economy through an extensive Department of Justice for its consideration. Time urban renewal program approved for Ottumwa for filing comments and views has expired and all and to be implemented during the next several those received have been considered. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
852 FEDERAL RESERVE BULLETIN • OCTOBER 1971 IT IS HEREBY ORDERED, for the reasons set forth approximating $310.7 million and is the eighth in the Board's Statement of this date, that said largest banking organization in Virginia. The acapplication be and hereby is denied. quisition of Bank (deposits of $10.5 million) By order of the Board of Governors, September would increase Applicant's share of commercial 21, 1971. bank deposits in the State from 3.9 per cent to 4.0 per cent and would not change its present Voting for this action: Vice Chairman Robertson ranking. 1 (All banking data are as of December and Governors Mitchell, Daane, Maisel, Brimmer, 31,1970, and reflect holding company formations and Sherrill. Absent and not voting: Chairman Burns. and acquisitions approved by the Board through (Signed) TYNAN SMITH, August 15, 1971.) Secretary. Bank operates but one office, located in Gretna, [SEAL] Virginia, a town with an approximate population of 950 and situated in the north-central part of Pittsylvania County. Its principal competitors ^ STATEMENT are two banking organizations located 13 miles Fidelity American Bankshares, Inc., Lynchburg, to the north in Altavista, a town on the southern Virginia, a registered bank holding company, has edge of Campbell County. One of the Altavista applied to the Board of Governors, pursuant to banks is a branch office of Applicant's lead bank. section 3(a)(3) of the Bank Holding Company The primary service area of Bank includes the Act of 1956 (12 U.S.C. 1842(a)(3)), for prior town of Gretna and that portion of Pittsylvania approval of the acquisition of 80 per cent or more County within an approximate radius of 10 miles. of the voting shares of Peoples Bank of Gretna, However, considering the importance of Altavista Gretna, Virginia ("Bank"). as a trade and employment center for an area that Views and recommendation of supervisory includes Gretna, and the fact that Bank is situated authority. As required by section 3(b) of the on the same arterial highway as the Altavista Act, the Board notified the Virginia Commissioner office of The Fidelity National Bank, Applicant's of Banking of receipt of the application and re- lead bank, with no intervening banks between the quested his views and recommendation thereon. two, there would appear to be a definite overlap The Commissioner recommended approval of the between the service area of Bank and that of Apapplication. plicant's Altavista branch. This is confirmed by the extent of loan and deposit business which each Statutory considerations. Section 3(c) of the Act provides that the Board shall not approve an derives from the service area of the other. acquisition that would result in a monopoly or Almost 14 per cent of the total deposits and 10 would be in furtherance of any combination or per cent of the loans of the Altavista branch of conspiracy to monopolize or to attempt to monop- Fidelity National originate in the service area of olize the business of banking in any part of the Bank. A further indication of Fidelity National's United States. Nor may the Board approve a entrenchment in Bank's service area is observed proposed acquisition the effect of which, in any from the fact that almost 14 per cent of its insection of the country, may be substantially to stalment loans and over 12 per cent of its time lessen competition, or to tend to create a monop- loans originate in the Gretna area. Thus, within oly, or which in any other manner would be in the Altavista-Gretna market, there is a substantial restraint of trade, unless the Board finds that the anticompetitive effects of the proposed transaction ^In separate Orders dated September 16, 1971, the are clearly outweighed in the public interest by Board has approved concurrent applications filed by Applicant to acquire 80 per cent or more of the voting the probable efifect of the transaction in meeting shares of The Culpeper National Bank, Culpeper, Virginia, the convenience and needs of the communities to and Metompkin Bank and Trust Company, Parksley, be served. In each case, the Board is required to Virginia. Affiliation of both banks will increase Applicant's share of the total Virginia deposits to 4.3 per cent, take into consideration the financial and managewhile its State-wide competitive position will remain rial resources and future prospects of the bank unaltered. holding company and the banks concerned, and 2 Two Chatham banks, located approximately 10 miles south of Gretna, are excluded from our analysis, since the convenience and needs of the communities to they are much less competitive in the Altavista-Gretna be served. market than mere proximity would indicate. This is primarily due to the fact that the town of Chatham is more Competitive effect of proposed transaction. Aporiented to the city of Danville (population 46,400) in plicant controls five banks with aggregate deposits terms of both employment and trade. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 853 amount of present competition between Fidelity approval of the application, provide no significant National and Bank. Both banks actively compete weight in support of such action. for this banking business, among other ways, Convenience and needs of the communities through their advertisements in the Altavista involved. As Applicant concedes. Bank's loan Journal, the area's only newspaper. limit of $90,000 has thus far not proved detri- Of the three banks located in the Altavista- mental to its customers. Affiliation with Applicant Gretna banking market. The First National Bank would not provide any additional services not of Altavista holds the largest, or 43.9 per cent, of presently available in the area through the Altaarea deposits. Bank ranks second, with 30.7 per vista branch of Applicant's lead bank. Consideracent of market deposits, while the branch office tions relating to the convenience and needs of the of The Fidelity National Bank, Applicant's lead communities involved are little more than consisbank, ranks third in size with 25.4 per cent. tent with approval. Affiliation of Bank with Applicant would thus Summary and conclusion. On the basis of all increase Applicant's share of market deposits to relevant facts contained in the record, and in the 56.1 per cent, and enable it to control the domi- light of the factors set forth in section 3(c) of the nant share in this market. Banking customers Act, it is the Board's judgment that the proposed within the Altavista-Gretna market are, for the transaction would not be in the public interest, most part, almost wholly dependent upon the and the application should be denied. three present banking institutions for the price and quality of their banking needs. Should the number PLAZA BANCSHARES, INC., of banking alternatives in the market be reduced KANSAS CITY, MISSOURI from three to two, the vigor of competition is likely to diminish. These alternatives bring sub- In the matter of the application of Plaza Bancstantial weight against approval of the present shares, Inc., Kansas City, Missouri, for approval proposal. of action to become a bank holding company There are apparently several banking organiza- through the acquisition of 100 per cent of the tions in Virginia who are desirous of entering the voting shares (less directors' qualifying shares) Altavista-Gretna market through acquisition of of the successor by merger to the Plaza Bank of Bank. One such potential entrant made a firm Commerce, Kansas City, Missouri. offer of affiliation with Bank, while negotiations with another were terminated when Bank made ORDER APPROVING ACTION TO BECOME a decision to seek affiliation with the Applicant. A BANK HOLDING COMPANY Neither of these alternative proposals would have the anticompetitive consequences as are to be There has come before the Board of Governors, found in the present application. pursuant to section 3(a)(1) of the Bank Holding Based on the foregoing, the Board concludes Company Act of 1956 (12 U.S.C. 1842(a)(1)) that consummation of Applicant's proposal would and section 222.3(a) of Federal Reserve Regulanot result in a monopoly or be in furtherance of tion Y (12 CFR 222.3(a)), an application by any combination, conspiracy, or attempt to mo- Plaza Bancshares, Inc., Kansas City, Missouri, for the Board's prior approval of action whereby Apnopolize the business of banking in any area. Howplicant would become a bank holding company ever, the anticompetitive effects of the proposal through the acquisition of 100 per cent of the are sufficiently serious as to provide significant voting shares (less directors' qualifying shares) of weight against approval of the application. the successor by merger to the Plaza Bank of Financial and managerial resources and future Commerce, Kansas City, Missouri ("Bank"). prospects. The financial condition of Applicant (Bank is to be merged into a nonoperating bank and its subsidiary banks is satisfactory, their that has significance only as a vehicle to accommanagement is capable, and prospects of the plish the acquisition of all the shares of Bank; group are favorable. accordingly, acquisition of the shares of the The financial condition and management of successor bank is treated as an acquisition of the Bank are generally satisfactory, and its prospects, shares of Bank.) whether operating independently or as a subsidiary As required by section 3(b) of the Act, the of Applicant, are favorable. Board gave written notice of receipt of the applica- These considerations, while consistent with tion to the Commissioner of Finance of the State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
854 FEDERAL RESERVE BULLETIN • OCTOBER 1971 of Missouri, and requested his views and recom- than three months after the date of this Order, mendation. The Commissioner did not object to unless such period is extended for good cause by approval of the application. the Board or by the Federal Reserve Bank of Notice of receipt of the application was pub- Kansas City pursuant to delegated authority. lished in the Federal Register on July 28, 1971 By order of the Board of Governors, September (36 Federal Register 13951), providing an op- 21, 1971. portunity for interested persons to submit com- Voting for this action: Vice Chairman Robertson ments and views with respect to the proposal.. A and Governors Mitchell, Daane, Maisel, Brimmer, copy of the application was forwarded to the and Sherrill. Absent and not voting: Chairman Burns. United States Department of Justice for its con- (Signed) TYNAN SMITH, sideration. Time for filing comments and views Secretary. has expired and all those received have been considered. [SEAL] The Board has considered the application in the light of the factors set forth in section 3(c) of the EMPIRE SHARES CORPORATION, Act, including the effect of the proposed acquisi- NEW YORK, NEW YORK tion on competition, the financial and managerial In the matter of the application of Empire resources and future prospects of the Applicant Shares Corporation, New York, New York, for and the banks concerned, and the convenience approval of acquisition of 39.9627 per cent of the and needs of the communities to be served, and voting shares of Community State Bank, Albany, finds that: New York. Applicant is a recently organized corporation, formed for the purpose of becoming a bank hold- ORDER APPROVING ACQUISITION OF BANK STOCK ing company. Bank (deposits of $46.4 million) BY BANK HOLDING COMPANY is the eighth largest of 40 banks in the Kansas City area and the eleventh largest of 125 banks There has come before the Board of Governors in the Kansas City SMSA, controlling 1.4 per cent pursuant to section 3(a)(3) of the Bank Holding of the deposits in that SMSA and only .4 per cent Company Act of 1956 (12 U.S.C. 1842(a)(3)) of the total commercial bank deposits in Missouri. and section 222.3 (a) of Federal Reserve Regula- (Banking data are as of December 31, 1970.) tion Y (12 CFR 222.3(a)), an application by The proposal constitutes a corporate reorganiza- Empire Shares Corporation, New York, New tion and reflects no expansion of the corporate York, a registered bank holding company, which interests or significant change in the character of presently owns 42.7 per cent of the voting shares banking facilities involved; consummation of the of Community State Bank ("Bank"), Albany, proposal would not alter existing banking com- New York, for the Board's prior approval of the petition nor significantly affect potential competi- acquisition of an additional 39.9627 per cent of tion. The financial and managerial resources and the voting shares of Bank. future prospects of Applicant and Bank are satis- As required by section 3(b) of the Act, the factory and consistent with approval of the ap- Board gave written notice of receipt of the application. Consummation of the proposal would plication to the Superintendent of Banks of the not have any immediate effects on the convenience State of New York, and requested his views and and needs of the community, but improved ser- recommendation. The Superintendent has offered vices may be provided in the future under the no objection to approval of the application. more flexible corporate structure of the holding Notice of receipt of the application was pubcompany system. It is the Board's judgment that lished in the Federal Register on August 19, 1971 consummation of the proposal would be in the (36 Federal Register 16144), providing an oppublic interest and that the application should be portunity for interested persons to submit comapproved. ments and views with respect to the proposal. A IT IS HEREBY ORDERED, on the basis of the copy of the application was forwarded to the record, that said application be and hereby is United States Department of Justice for its conapproved for the reasons summarized above, sideration. Time for filing comments and views provided that the action so approved shall not be has expired and all those received have been consummated (a) before the thirtieth calendar considered. day following the date of this Order or (b) later The Board has considered the application in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 855 light of the factors set forth in section 3(c) of the consistent with approval of the application. It Act, including the effect of the proposed acquisi- appears that the convenience and needs of the tion on competition, the financial and managerial communities involved will not be affected by conresources and future prospects of the Applicant summation of this proposal. It is the Board's and the banks concerned, and the convenience judgment that the proposed transaction would be and needs of the communities to be served, and in the public interest and that the application finds that: should be approved. Applicant is a wholly-owned subsidiary of The IT IS HEREBY ORDERED, on the basis of the rec- Morris Plan Corporation, New York, New York, ord, that said application be and hereby is apa registered bank holding company that is a proved for the reasons summarized above, wholly-owned subsidiary of Financial General provided that the acquisition so approved shall not Bankshares, Inc., Washington, D. C., also a regis- be consummated (a) before the thirtieth calendar tered bank holding company. The shares of Bank day following the date of this Order or (b) later which Applicant in this application proposes to than three months after the date of this Order, acquire are presently owned in varying amounts unless such period is extended for good cause by by four other wholly-owned subsidiaries of The the Board, or by the Federal Reserve Bank of New Morris Plan Corporation each of which is a York pursuant to delegated authority. registered bank holding company. Under Ap- By order of the Board of Governors, September plicant's proposal, each of these four bank hold- 21, 1971. ing companies would issue its shares of Bank as Voting for this action: Vice Chairman Robertson a dividend to The Morris Plan Corporation which and Governors Mitchell, Daane, Maisel, Brimmer, would then contribute said Bank shares to Appli- and Sherrill. Absent and not voting: Chairman Burns. cant. (Signed) TYNAN SMITH, Applicant, presently the twelfth largest of four- Secretary. teen existing or proposed multi-bank holding companies in the State of New York, has three [SEAL] subsidiary banks with $314 million in aggregate deposits, representing 0.4 per cent of the total UNITED CAROLINA BANCSHARES commercial bank deposits in the State. (All bank- CORPORATION, ing data, except where otherwise indicated, are as WHITEVILLE, NORTH CAROLINA of December 31, 1970, and reflect bank holding In the matter of the application of United company formations and acquisitions approved Carolina Bancshares Corporation, Whiteville, by the Board to August 31, 1971.) Bank, pres- North Carolina, for approval of acquisition of 100 ently the ninth largest of fifteen banking organizaper cent of the voting shares (less directors' qualitions competing in the Albany banking market, fying shares) of the successor by merger to Cape which is approximated by Albany, Schenectady, Fear Bank & Trust Company, Fayetteville, North and Rensselaer Counties, had $34.2 million in Carolina. deposits as of June 30, 1970, representing 1.6 per cent of total commercial bank deposits in the area and 0.04 per cent of total commercial bank ORDER APPROVING ACQUISITION OF BANK STOCK deposits in the State. BY BANK HOLDING COMPANY Inasmuch as the proposal merely constitutes a There has come before the Board of Governors, strengthening of Applicant's already substantial pursuant to section 3(a)(3) of the Bank Holding control over Bank and projects no change in the Company Act of 1956 (12 U.S.C. 1842(a)(3)), character of the banking facilities involved, con- and section 222.3(a) of Federal Reserve Regulasummation of the proposal would neither increase tion Y (12 CFR 222.3(a)), an application by the amount of deposits which Applicant controls, United Carolina Bancshares Corporation, Whitenor alter its present ranking. Similarly, consum- ville. North Carolina, a registered bank holding mation of the proposal would not alter existing company, for the Board's prior approval of the banking competition nor foreclose potential com- acquisition of 100 per cent of the voting shares petition, nor have any adverse effects on other (less directors' qualifying shares) of the successor banks in the Albany market. The financial and by merger to Cape Fear Bank & Trust Company, managerial resources and future prospects of Ap- Fayetteville, North Carolina ("Bank"). The plicant and Bank are regarded as satisfactory and bank into which Bank is to be merged has no Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
856 FEDERAL RESERVE BULLETIN • OCTOBER 1971 significance except as; a means of acquiring all of with Bank to any significant extent. It further the shares of Bank. Accordingly, the proposed appears that the proposed acquisition would not acquisition of the shares of the successor organiza- foreclose significant potential competition; a large tion is treated herein as the proposed acquisition number of existing banking institutions in the area of the shares of Bank., and a low population-to-bank ratio mitigate As required by section 3(b) of the Act, the against Applicant's entry into the Fayetteville- Board give written notice of receipt of the applica- Clinton market through the establishment of a tion to the Commissioner of Banks of the State of new bank. It does not appear, therefore, that North Carolina and requested his views and rec- significant competition would be eliminated, nor ommendation. The Commissioner recommended significant potential competition foreclosed by approval of the application. consummation of Applicant's proposal, nor that Notice of receipt of the application was pub- there would be adverse effects on any other bank. lished in the Federal Register on August 3, 1971 The financial and managerial resources and (36 Federal Register 14285), providing an op- prospects of Applicant, its subsidiaries, and Bank portunity for interested persons to submit com- are regarded as satisfactory and consistent with ments and views with respect to the proposed approval of the application. The major banking transaction. A copy of the application was for- needs of the communities involved are presently warded to the United States Department of Justice being met by the existing institutions; however, as for its consideration. Time for filing comments and a result of its affiliation with Applicant, Bank views has expired and all those received have been would be able to offer expanded and improved considered by the Board. services, including mortgage financing, auditing, The Board has considered the application in the business development, and trust and data processlight of the factors set forth in section 3(c) of the ing services. These considerations relating to con- Act, including the effect of the proposed acquisi- venience and needs lend some weight in support tion on competition, the financial and managerial of approval of the application. It is the Board's resources and future prospects of Applicant and judgment that consummation of the proposed the banks concerned, and the convenience and acquisition would be in the public interest, and needs of the communities to be served. Upon that the application should be approved. such consideration the Board finds that: IT IS HEREBY ORDERED, on the basis of the Applicant, the eighth largest banking organiza- record, that said application be and hereby is tion in North Carolina, controls two banks with approved for the reasons summarized above, prodeposits of $169.9 million, representing approxi- vided that the action so approved shall not be mately 2.3 per cent of total commercial bank consummated (a) before the thirtieth calendar day deposits in the State,, (All banking data are as of following the date of this Order or (b) later than December 31, 1970, adjusted to reflect holding three months after the date of this Order, unless company formations and acquisitions approved by such period is extended for good cause by the the Board through August 31, 1971.) The acquisi- Board or by the Federal Reserve Bank of Richtion of Bank ($10.9 million deposits), would mond pursuant to delegated authority. increase Applicant's control of deposits in the By order of the Board of Governors, Septem- State only insignificantly, and'its present ranking ber 28, 1971. among banking organizations in the State would Voting for this action: Vice Chairman Robertson remain unchanged. and Governors Mitchell, Daane, Maisel, Brimmer, Bank, with three offices, is the smallest of six and Sherrill. Absent and not voting: Chairman Burns. banks operating in the Fayetteville-Clinton (Signed) TYNAN SMITH, market, which is approximated by Cumberland Secretary. County and the northern two thirds of Sampson [SEAL] County, and holds 4.3 per cent of market deposits. The five competing banks in the market are SECURITY NEW YORK STATE branches of banking institutions which are larger CORPORATION, than Applicant and rank among the State's seven ROCHESTER, NEW YORK largest banking organizations. One of Applicant's subsidiary banks has an office in Robeson County, In the matter of the application of Security 22 miles south of Bank's main office, and neither New York State Corporation, Rochester, New it nor Applicant's other subsidiary bank competes York, for approval of acquisition of 100 per cent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 857 of the voting shares of First Bank and Trust Com- Applicant's principal subsidiary operates an pany of Corningy Corning, New York. extensive branch network throughout the State's Eighth Banking District and is the third largest of 31 banks located in that District, controlling 16.6 ORDER APPROVING ACQUISITION OF BANK STOCK per cent of that area's deposits. Consummation of BY BANK HOLDING COMPANY this proposal, involving acquisition of the seventh There has come before the Board of Gover- largest bank in the District, would increase Apnors, pursuant to section 3(a)(3) of the Bank plicant's share of commercial bank deposits in Holding Company Act of 1956 (12 U.S.C. that District to approximately 18 per cent. 1842(a)(3)) and section 222.3(a) of Federal First Corning (deposits of $28.6 million, con- Reserve Regulation Y (12 CFR 222.3(a)), an stituting 11 per cent of commercial bank deposits application by Security New York State Corpora- in the market) is the fourth largest of nine banks tion ("Applicant"), Rochester, New York, for located in the Corning-Elmira area which apthe Board's prior approval of the acquisition of proximates the relevant banking market. 100 per cent of the voting shares of First Bank Applicant's subsidiary located closest to First and Trust Company of Corning ("First Corning"), Corning is approximately 20 miles northwest of Corning, New York. Corning in the Village of Bath and is considered As required by section 3(b) of the Act, the to operate in an adjacent market. Although there Board gave written notice of receipt of the applica- does not appear to be a significant amount of tion to the New York Superintendent of Banks existing competition between Applicant's Bath and requested his views and recommendation. The subsidiary and First Corning, some potential com- New York State Banking Board approved an petition may be foreclosed by consummation of application involving the present proposal in this proposal. It is likely that some increased comaccordance with the recommendation of the New petition between Applicant's Bath subsidiary and York State Superintendent of Banks and advised First Corning may develop in the future absent the Board of its action. consummation of this proposal. In addition, the Notice of receipt of the application was pub- proposal would eliminate First Corning as a lished in the Federal Register on June 24, 1971 vehicle for entry by a new competitor not now (36 Federal Register 12057), providing an op- represented in the Eighth Banking District. While portunity for interested persons to submit com- Applicant could enter the Corning-Elmira market ments and views with respect to the proposal. A by establishing a de novo branch or by acquisition copy of the application was forwarded to the of a smaller bank, the present stagnant condition United States Department of Justice for its con- of the area's economy and the large number of sideration. Time for filing comments and views banking offices already in the area makes these has expired and all those received have been possibilities remote. Acquisition of First Corning considered. by Applicant will result in the removal of home The Board has considered the application in office protection in Corning and thereby liberalize the light of the factors set forth in section 3(c) the branching possibilities in that city. of the Act, including the effect of the proposed Affiliation with Applicant will enable First acquisition on competition, the financial and Corning to compete more aggressively with the managerial resources and future prospects of the larger banks in the market and permit it to more Applicant and the banks concerned, and the con- adequately respond to the financial needs of the venience and needs of the communities to be larger business firms in the area. served, and finds that: Although the members of the Board in varying Applicant, the nineteenth largest banking orga- degrees view the transaction as having an adverse nization and sixth largest multi-bank holding com- effect on competition, there is unanimous agreepany in New York State, has six subsidiary banks ment that the anticompetitive effects are clearly with aggregate deposits of approximately $478 outweighed in the public interest by the probable million, representing .5 per cent of total commer- effect of the transaction in meeting the concial bank deposits in the State. (All banking data venience and needs of the community to be served. are as of December 31, 1970, unless otherwise Consideration of the financial and managerial noted, and reflect all holding company formations resources and future prospects of Applicant and and acquisitions approved by the Board through First Corning lends further weight to approval. July 31, 1971.) Specifically, First Corning has experienced recent Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
858 FEDERAL RESERVE BULLETIN • OCTOBER 1971 financial and managerial difficulties, and Applicant by Mid America Bancorporation, Inc., St. Paul, proposes and appears able to undertake specific Minnesota, a registered bank holding company, measures (including significant strengthening of for the Board's prior approval of the acquisition First Coming's capital accounts) to improve First of 90 per cent or more of the voting shares of Mid Coming's present financial condition and to con- America State Bank of Mendota Heights, Mendota tinue to improve operating procedures. Applicant Heights, Minnesota ("Bank"), a proposed new has been providing some managerial assistance bank. to First Corning, and plans to continue to draw As required by section 3(b) of the Act, the on its managerial resources to provide the addi- Board gave written notice of receipt of the aptional assistance necessary to improve First Com- plication to the Minnesota Commissioner of Banks ing's present condition. Affiliation with Applicant and requested his views and recommendation. The appears to offer the additional prospect that ex- Commissioner indicated that he would not object panded and improved banking services, such as a to this application. more varied loan policy, will be provided to cus- Notice of receipt of the application was pubtomers and First Coming's operations will be lished in the Federal Register on August 3, 1971 strengthened by special services provided by Ap- (36 Federal Register 14284), providing an opplicant. portunity for interested persons to submit com- IT IS HEREBY ORDERED, on the basis of the ments and views with respect to the proposal. record, that said application be and hereby is ap- A copy of the application was forwarded to the proved for the reasons summarized above, pro- United States Department of Justice for its convided that the action so approved shall not be sideration. Time for filing comments and views consummated (a) before the thirtieth calendar day has expired and all those received have been confollowing the date of this Order or (b) later than sidered. three months after the date of the Order, unless The Board has considered the application in the such period is extended for good cause by the light of the factors set forth in section 3(c) of Board, or by the Federal Reserve Bank of New the Act, including the effect of the proposed York pursuant to delegated authority. acquisition on competition, the financial and man- By order of the Board of Governors, Septem- agerial resources and future prospects of the ber 28, 1971. Applicant and the banks concerned, and the convenience and needs of the communities to be Voting for this action: Vice Chairman Robertson served, and finds that: and Governors Mitchell, Daane, Maisel, Brimmer, and Sherrill. Absent and not voting: Chairman Burns. Applicant controls four banks with aggregate deposits of approximately $35 million, represent- (Signed) TYNAN SMITH, ing .4 per cent of the total commercial bank Secretary. deposits in the State, and is the fifth largest bank [SEAL] holding company group in Minnesota. (All banking data are as of December 31, 1970, and reflect MID AMERICAN BANCORPORATION, INC., holding company formations and acquisitions ap- ST. PAUL, MINNESOTA proved through August 31, 1971.) Since Bank is a proposed new bank, no existing competition In the matter of the application of Mid America would be eliminated by consummation of the pro- Bancorporation, Inc., St. Paul, Minnesota, for posal herein, nor would concentration be increased approval of acquisition of 90 per cent or more of in any relevant area. the voting shares of Mid America State Bank of Bank will be located in a growing residential Mendota Heights, Mendota Heights, Minnesota, area six miles south of St. Paul. Bank's proposed a proposed new bank. site is adjacent to the first shopping complex in the Mendota Heights area. Applicant's closest ORDER APPROVING ACQUISITION OF BANK STOCK subsidiary to Bank is located 5.7 miles northwest BY BANK HOLDING COMPANY of Bank but is separated from Bank by competing There has come before the Board of Gover- banks and the Mississippi River. Applicant's existnors, pursuant to section 3(a)(3) of the Bank ing Egan Township subsidiary is 7.2 miles south- Holding Company Act of 1956 (12 U.S.C. 1842 west of Bank, and derives less than 5 per cent of (a)(3)) and section 222.3(a) of Federal Reserve its business from the projected service area of Regulation Y (12 CFR 222.3(a)), an application Bank. The overlap apparently is due to the fact Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 859 that no banks are located in the projected service be extended for good cause by the Board, or by area of Bank and that the Egan Township sub- the Federal Reserve Bank of Minneapolis pursuant sidiary is the bank closest to the southern portion to delegated authority. of said area. By order of the Board of Governors, September Consummation of the proposal would not give 28, 1971. Applicant a dominant position in the relevant Voting for this action: Vice Chairman Robertson market which is defined as the Minneapolis-St. and Governors Mitchell, Daane, Maisel, Brimmer, Paul banking market. That market is one of the and Sherrill. Absent and not voting: Chairman Burns. most concentrated in the country with 105 banks (Signed) TYNAN SMITH, including six holding company groups which Secretary, hold, in the aggregate, close to 74 per cent of deposits, with Applicant controlling the smallest [SEAL] percentage of deposits (.7 per cent). It appears that acquisition of Bank would enable Applicant NORTHERN VIRGINIA BANKSHARES to compete more effectively with the larger orga- INCORPORATED, nizations in the relevant market. BAILEY'S CROSSROADS, VIRGINIA On the basis of the record before it, the Board concludes that consummation of the proposed In the matter of the application of Northern acquisition would not adversely affect competition Virginia Bankshares Incorporated, Bailey's Crossin any relevant area. The financial condition, roads, Virginia, for approval of acquisition of management, and prospects of Applicant and its 41.96 per cent or more of the voting shares of The subsidiary banks are regarded as generally satis- Bank of Arlington, Arlington, Virginia. factory. Bank has no operating financial history. Its proposed capitalization is considered satis- ORDER APPROVING ACQUISITION OF BANK STOCK factory, and Bank will be able to draw on Appli- BY BANK HOLDING COMPANY cant for management. Bank will receive from Applicant technical and managerial resources, and There has come before the Board of Governors, aid in raising capital as needed. Bank's prospects pursuant to section 3(a)(3) of the Bank Holding appear favorable. The banking factors are con- Company Act of 1956 (12 U.S.C. 1842(a)(3)) sistent with approval. Bank's proposed location and section 222.3(a) of Federal Reserve Reguis in a service area where there are no banks and lation Y (12 CFR 222.3(a)), an application by where residents and businesses generally do their Northern Virginia Bankshares Incorporated, banking by commuting out of the service area. Bailey's Crossroads, Virginia, for the Board's prior The proposed bank would provide services more approval of the acquisition of 41.96 per cent or convenient to area customers, and should also more of the voting shares of The Bank of Arlingstimulate business activity in the community. Con- ton, Arlington, Virginia ("Bank"). siderations relating to the convenience and needs As required by section 3(b) of the Act, the of the communities to be served lend some weight Board gave written notice of receipt of the applitoward approval of the application. It is the cation to the Virginia Commissioner of Banking Board's judgment that consummation of the pro- and requested his views and recommendation. The posed acquisition would be in the public interest Commissioner recommended approval of the and that the application should be approved. application. IT IS HEREBY ORDERED, on the basis of the Notice of receipt of the application was pubrecord, that said application be and hereby is lished in the Federal Register on August 21, 1971 approved for the reasons summarized above, (36 Federal Register 16536), providing an opporprovided that the action so approved shall not be tunity for interested persons to submit comments consummated (a) before the thirtieth calendar and views with respect to the proposal. A copy of day following the date of this Order or (b) later the application was forwarded to the United than three months after the date of this Order; States Department of Justice for its consideration. and provided further that (c) Mid America State Time for filing comments and views has expired Bank of Mendota Heights, Mendota Heights, and all those received have been considered. Minnesota, shall be opened for business not later The Board has considered the application in the than six months after the date of this Order. light of the factors set forth in section 3(c) of the Each of the periods described in (b) and (c) may Act, including the effect of the proposed acquisi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
860 FEDERAL RESERVE BULLETIN • OCTOBER 1971 tion on competition, the financial and managerial venience and needs factors, therefore, lend some resources and future prospects of the Applicant weight in support of approval of the application. and the banks concerned, and the convenience and It is the Board's judgment that the proposed transneeds of the communities to be served, and finds action would be in the public interest, and that that: the application should be approved. Applicant, the smallest bank holding company IT IS HEREBY ORDERED, on the basis of the in Virginia, controls two subsidiary banks with record, that said application be and hereby is aggregate deposits of $12.7 million, representing approved for the reasons summarized above, proless than .2 per cent of the total commercial bank vided that the action so approved shall not be deposits in the State. (Unless otherwise indicated, consummated (a) before the thirtieth calendar day all banking data are as of December 31, 1970, following the date of this Order or (b) later than adjusted to reflect holding company acquisitions three months after the date of this Order, unless and formations approved by the Board through such period is extended for good cause by the August 31, 1971.) Consummation of the proposal Board, or by the Federal Reserve Bank of Richherein would increase Applicant's share of de- mond pursuant to delegated authority. posits in the State only slightly, and it would By order of the Board of Governors, October 5, remain the State's smallest bank holding company. 1971. Bank, which began operations on February 1, Voting for this action: Vice Chairman Robertson 1971, is located in suburban Washington, D.C., and Governors Mitchell, Daane, Maisel, and and is the smallest of the seven banking organiza- Brimmer. Absent and not voting: Chairman Burns tions operating in Arlington County, holding $3.2 and Governor Sherrill. million in deposits as of June 30, 1971. Although (Signed) TYNAN SMITH, the closest offices of Applicant's subsidiary banks Secretary of the Board. and Bank are six miles apart, there are numerous offices of competing institutions in the intervening [SEAL] area, and Bank competes directly with several larger institutions, including Virginia's largest bank and affiliates of five holding companies, all CENTRAL AND STATE NATIONAL significantly larger than Applicant. Furthermore, CORPORATION OF ALABAMA, the principal organizers of Bank included persons BIRMINGHAM, ALABAMA who are closely associated with Applicant. In light of that relationship and other factors set forth In the matter of the application of Central and above, consummation of the proposal herein State National Corporation of Alabama, Birmingwould not eliminate substantial existing competi- ham, Alabama, for approval of action to become tion. Moreover, the development of any sub- a bank holding company through the acquisition stantial future competition between Bank and of 80 per cent or more of the voting shares of either of Applicant's subsidiaries appears unlikely Central Bank and Trust Company, Birmingham, because of the size of Bank, the presence of a Alabama, and State National Bank of Alabama, large number of competing institutions in the im- Decatur, Alabama. mediate area, and the Virginia law restricting de novo branching across county boundaries. Ac- ORDER APPROVING ACTION TO BECOME quisition of Bank by Applicant should enhance A BANK HOLDING COMPANY Bank's ability to compete more effectively with the area's larger banking institutions. On the There has come before the Board of Governors, basis of the record before it, the Board concludes pursuant to section 3(a)(1) of the Bank Holding that consummation of the proposal would not ad- Company Act of 1956 (12 U.S.C. 1842(a)(1)) versely affect competition in any area. and section 222.3(a) of Federal Reserve Regula- Considerations relating to the financial condi- tion Y (12 CFR 222.3 (a)), an application by tion, management, and prospects of Applicant, its Central and State National Corporation of Alapresent subsidiaries, and Bank are consistent with bama, Birmingham, Alabama, for the Board's approval of the application. As a result of its prior approval of action whereby Applicant would affiliation with Applicant, Bank would be in a become a bank holding company through the position to better serve the expanding needs of its acquisition of 80 per cent or more of the voting community. Considerations relating to the con- shares of Central Bank and Trust Company, Birm- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 861 ingham, Alabama, and State National Bank of STATEMENT Alabama, Decatur, Alabama. Central and State National Corporation, Birm- As required by section 3(b) of the Act, the ingham, Alabama has applied to the Board pur- Board gave written notice of receipt of the apsuant to section 3(a)(1) of the Bank Holding plication to the Comptroller of the Currency and Company Act of 1956 for prior approval of action to the Superintendent of Banks for the State of to become a bank holding company through the Alabama and requested their views and recomacquisition of 80 per cent or more of the voting mendations. The Comptroller recommended shares of Central Bank and Trust Company approval; the Superintendent replied that his de- ("Central"), Birmingham, Alabama and State Napartment did not wish to express views or recomtional Bank of Alabama ("State National"), Demendations regarding the subject application, alcatur, Alabama. though it found no apparent violation of the banking laws of the State. Views and recommendations of supervisory authorities. As required by section 3(b) of the Notice of receipt of the application was pub- Act, the Board gave written notice of receipt of lished in the Federal Register on February 11, the application to the Comptroller of the Currency 1971 (36 Federal Register 2881), providing an and to the Superintendent of Banks for the State opportunity for interested persons to submit comof Alabama and requested their views and recomments and views with respect to the proposed mendations. The Comptroller recommended aptransaction. In response to several requests, the proval; the Superintendent replied that, "this de- Board permitted an Oral Presentation Order to be partment does not wish to express views or published in the Federal Register on April 10, recommendations regarding the Central and State 1971 (36 Federal Register 6923). All persons National Corporation of Alabama, a proposed desiring to give testimony, present evidence or bank holding company, as provided in your letter otherwise participate in the presentation held in of February 5, 1971, as there is no apparent Birmingham, Alabama, on May 13, 1971, were violation of the banking laws of the State." permitted to do so. A copy of the application was forwarded to the United States Department Public Oral Presentation. Notice of receipt of of Justice for its consideration. Time for filing the application was published in the Federal comments and views has expired and all those Register on February 11, 1971 (36 Federal Regisreceived, the entire record of the presentation, ter 2881), which provided an opportunity for including the transcript, exhibits, exceptions, rul- interested persons to submit their comments and ings, all briefs and memoranda filed in connection views with respect to the proposed transaction. with the oral presentation and this proposal have Thereafter, in accordance with Section 3 of the been considered by the Board. Act and after receipt of a significant number of IT IS HEREBY ORDERED, on the basis of the objections and requests for a public hearing conrecord, that said application be and hereby is cerning the proposed transaction, the Board acting approved for the reasons set forth in the Board's at its discretion published in the Federal Register Statement of this date, provided that the action on April 10, 1971, its Order for Public Oral so approved shall not be consummated (a) before Presentation (36 Federal Register 6923). All perthe thirtieth calendar day following the date of this sons desiring to appear at or otherwise participate Order, or (b) later than three months after the in the Public Oral Presentation held in Birmingdate of this Order, unless such period is extended ham, Alabama, May 13, 1971, were permitted to for good cause by the Board or by the Federal do so. Proponents and opponents of Applicant's Reserve Bank of Atlanta pursuant to delegated proposal presented their views at the presentation authority. held before the General Counsel of the Board of Governors. The entire record of the presentation By order of the Board of Governors, October 7, including all materials submitted in connection 1971. with the presentation and this proposal have been Voting for this action: Chairman Burns and Gov- considered by the Board. ernors Mitchell, Daane, and Sherrill. Voting against this action: Governors Robertson, Maisel, and Statutory considerations. Section 3(c) of the Brimmer. Act provides that the Board shall not approve (Signed) TYNAN SMITH, an acquisition that would result in a monopoly or Secretary of the Board. would be in furtherance of any combination or [SEAL] conspiracy to monopolize or to attempt to mo- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
862 FEDERAL RESERVE BULLETIN • OCTOBER 1971 nopolize the business of banking in any part of establishes that each office operates with relative the United States. Nor may the Board approve autonomy in so far as usual loans are concerned. a proposed acquisition, the effect of which, in any Central Bank is located in Birmingham, the section of the country may be substantially to les- county seat of Jefferson County and the financial sen competition or tend to create a monopoly, and industrial center of the State. It is the fourth or which in any other manner would be in re- largest of 10 banking organizations in Birmingham straint of trade, unless the Board finds that the and Jefferson County which approximates its anticompetitive effects of the proposed transac- relevant market and controls 9 per cent of county tion are clearly outweighed in the public interest deposits. Although Central has experienced extraby the probable effect of the transaction in meet- ordinary growth since its formation in 1964, a ing the convenience and needs of the communities significant proportion of its deposits reflect manto be served. In each case, the Board is required agement's aggressive solicitation of correspondent to take into consideration the financial and man- accounts and large denomination certificates of agerial resources and future prospects of the bank deposit from banks outside of its retail banking holding company and the banks concerned, and market. At the present time, 23 per cent of Centhe convenience and needs of the communities to tral's total deposits reflect correspondent bank be served. accounts, placing Central second in total correspondent balances in the State. Competitive effects of proposed transaction. The ten largest banking organizations in the State In 1968, Central attempted to merge with State of Alabama control total deposits of $2.41 billion, National. Although the proposal received agency representing 48.0 per cent of the deposits held by approval, it was declared impermissible by the all commercial banks in the State.^ Alabama courts for reasons not germane to the Applicant proposes to acquire State National present application. At the time of the proposed ($232 million deposits) and Central ($121 million merger individuals associated with Central acdeposits), the fourth and seventh largest banking quired approximately 26 per cent of the outstandorganizations in Alabama. Upon consummation of ing stock of State National. The two banks have its proposal. Applicant would control 7.0 per cent maintained a cooperative relationship since 1968, of commercial bank deposits in the State and with the president of Central serving as a special become the State's second multi-bank holding consultant and chairman of State National's execucompany and its third largest banking organiza- tive committee. This application is the result of tion. The recent formation of First Alabama Central's continued efforts to formalize this rela- Bancshares (1971 Federal Reserve BULLETIN tionship. 404) to become the State's first multi-bank holding The closest banking offices of Central and State company combined the fifth, sixth, and tenth National are located 40 miles apart in separate largest banks in the State and created the State's markets, therefore, no meaningful competition second largest banking organization. exists between these banks which would be elimi- State National has its main office in Decatur, nated by the proposed affiliation. It is doubtful the county seat of Morgan County, Alabama. that these banks would compete in the future absent termination of their present management re- Under a "grandfather" provision of the Alabama lationship and reduction of stock holdings in State banking law, it is the only bank in the State National by interests associated with Central. In permitted to establish branches across county lines addition, State National has not been an active (it is permitted to branch into 14 counties). At competitor in the correspondent field with only the present time, it operates 29 offices in 12 1.0 per cent of its deposits in correspondent balcounties located in northern Alabama. It is the ances (after deducting the balance carried by largest bank operating in this 12 county region; Central Bank). in five counties it has less than 20 per cent of total The Board has considered the effects on the deposits, and in four counties it has more than banking structure of Alabama of its recent ap- 40 per cent of total deposits. While each office proval of the application of First Alabama Banchas the capability of drawing on the resources of shares which was based upon the expectation that the bank for large loan demands, the record the formation "would enhance competition in several markets in Alabama." The Board con- ^All banking data are as of December 31, 1970, unless cludes that consummation of Applicant's proposal otherwise indicated and reflect holding company formawill not lessen existing or foreclose significant potions approved by the Board through September 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 863 tential competition in any relevant market. In- if the present relationship between the banks were stead, consummation of the proposal will enable to terminate). However, any possible adverse Central to compete more effectively with the larger effects on potential competition resulting from conbanking organizations in Birmingham and will summation of Applicant's proposal are, in the permit Applicant to become a meaningful competi- Board's view, not so significant as to outweigh the tor with Other statewide bank holding companies procompetitive result of reducing the existing comemerging in Alabama. petitive advantage and market domination of the The three largest banking organizations in State's largest banking organizations. The Board Birmingham control approximately 84 per cent believes it to be in the economic interest of the of commercial bank deposits in that market. Con- State of Alabama to permit a combination of the summation of Applicant's proposal should estab- resource potential of State National with the aglish an additional alternative for customers for gressive, innovative character of Central for the larger or specialized banking services in Birming- purpose of improving the competitive environment ham. The competitive effect on smaller, pre- among the State's largest banking institutions. At dominantly retail banks in Birmingham should not the same time, the opportunity for moderate and be significant in view of the existing size disparity smaller size banking institutions in the State to between these banks and the larger banks in the form regional affiliations which would encourage market. further deconcentration at other levels of com- State National, although the largest bank in its mercial bank competition will be preserved. 12 county area, operates primarily in small local On the basis of all relevant facts contained in markets and serves only one major metropolitan the record, it is the Board's judgment that consummarket in the State—Huntsville. In 5 of the 12 mation of the proposed transaction would not counties State National's share of county deposits result in a monopoly or be in furtherance of any is less than 20 per cent. In the First Alabama combination, conspiracy or attempt to monopolize determination, the Board noted the "competitive the business of banking in any part of the country. capabilities" of State National as support for im- Financial and managerial resources and future proving the competitive strength of First Ala- prospects. Applicant, a newly formed corporation, bama's proposed Huntsville subsidiary which is the has no operating history. Since its assets, for the largest bank in Madison County. Affiliation with most part, will consist of its stock interest in Central will enable State National to maximize Central and State National, and since Applicant's its resource strength and competitive capability management will be drawn from both banks, the in order to satisfy growing financial require- financial condition, management resources and ments and further stimulate economic develop- prospects of Applicant are dependent in all rement in the northern Alabama counties. The spects on those of the banks. competitive position of smaller, primarily retail, The financial condition of both Central and banks in the State National's 12 county operating State National are generally satisfactory. Prospects area should not be significantly changed by for- of both banks and therefore Applicant appear malizing the affiliation of Central and State Na- favorable. Management of both banks (which has tional in a holding company organization in view been coordinated at the executive level since perof the existing overall dominant character of sons associated with Central acquired a 26 per cent State National in relation to these smaller banks. interest in State National) and Applicant are con- In connection with the review of the proposal's sidered capable and experienced and in all respects effect on competition, the Board considered com- satisfactory. The prospect of increased cooperation ments of the Department of Justice which con- should have a beneficial effect on the operations cluded that consummation of Applicant's proposal of both banks. will have an adverse effect on potential competi- The Board concludes that considerations relattion. The Department found that Applicant's pro- ing to banking factors, as they relate to Applicant, posal would reduce the possibility for eventual State National and Central, are consistent with deconcentration in each market by removing both approval. banks as potential entrants into the market of the Convenience and needs of the communities inother. volved. Both Central and State National are full The Board recognizes that alternative methods service banks and there is no evidence in the of entry into the respective markets are available record to indicate that substantial banking needs to Central and State National (and might be likely are unserved. However, Applicant points to an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
864 FEDERAL RESERVE BULLETIN • OCTOBER 1971 increased competitive environment in all fields of In the light of the effect of the recent formation banking, including offering improved trust services of First Alabama Bancshares on the structure of at Central as benefits occurring as a result of banking in the State (which joined the fifth, sixth, consummation. In addition, Applicant proposes and tenth largest banks in Alabama, 1971 Federal other broad initiatives as part of a ten point Reserve BULLETIN 404), the Board's action today program to be undertaken or further developed. authorizing the combination of the fourth and Proponents appearing at the oral presentation seventh largest banks in the State further concendiscussed at least three of the components of Ap- trates the scarce financial resources of the State plicant's program in detail: establishment of a to an increasingly undesirable level. Approval of venture capital loan department to encourage new this proposal reduces the number of potential lead industrial development in the State of Alabama; banks in the State with the probable result that creation of an agriculture and timber department; most of Alabama's banking resources will evenformation of a foreign department to serve those tually be controlled by as few as five or six bankcustomers with international financial require- ing organizations. ments. Although some of these services are pres- The Board has on previous occasions (e.g., 1968 ently provided by Central and State National Federal Reserve BULLETIN 925) recognized that individually or by other statewide competitors the primary objective of Congress in establishing located in Birmingham, Huntsville, and Mobile, the competitive standard to be applied in adminisinitiation or expansion of these services by Appli- tering the Act was to prevent the concentration of cant would provide an additional alternative for banking resources in the hands of a few large existing services and a source for meeting in- banking organizations and to protect and encourcreased demands for financial services brought age a framework for a banking structure consisting about by economic development in the State. of as many separate and competing banking or- Applicant has indicated that Central will dis- ganizations as can best serve the needs of the continue its absorption of exchange charges on banking public. The Board's approval of this transitems drawn on non par banks within 90 days action, in our judgment, frustrates that objective. after approval of the subject proposal. The Board As concerns State National, the resource has on a number of occasions expressed its view strength of that bank and its exclusive branching that the practice of non par banking is contrary to privilege were recognized by the Board in the the public interest. The beneficial consequence of First Alabama determination. As a result of the discontinuation of this practice, however, will majority's action in this case, the dominance of occur throughout the entire State as a result of a State National will be further entrenched by the recently enacted amendment to the State's banking addition of the fastest growing and most aggreslaw which prohibits the practice of non par pay- sive force in the Birmingham market. The ment of checks as of July 1, 1972. attempted competitive equalization sought by the Factors relating to the convenience and needs of Board in its action in the First Alabama applicathe communities concerned weigh in favor of ap- tion is destroyed by the effects of the action here. proval of the application. As concerns Central, the majority contends that Summary and conclusion. On the basis of all the the creation of a larger organization to be headrelevant facts contained in the record, and in the quartered in Birmingham will have procompetitive light of factors set forth in section 3(c) of the Act, effects throughout Jefferson County by reducing it is the Board's judgment that the proposed transthe size disparity among the larger banking oraction would be in the public interest and that ganizations competing there. However, Central the application should be approved. Bank has proven itself to be an aggressive, innovative and successful competitor in the State's most DISSENTING STATEMENT OF GOVERNORS competitive banking area. It is doubtful that this ROBERTSON, MAISEL, AND BRIMMER action will significantly enhance Central's proven competitive abilities. Neither would the latter be We dissent from the action taken by the majordiminished by a denial. ity in this case. In our opinion, consummation of the proposal will have adverse effects on potential As concerns both banks, the Department of competition in the State of Alabama which are Justice has concluded that consummation of the not outweighed by considerations of the con- proposal would eliminate potential competition venience and needs of any community in the State. by reducing the possibility that disaffiliation could Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
LAW DEPARTMENT 865 result in eventual deconcentration in each local proval of the First Alabama formation removed market. We are in agreement with the Depart- First National Bank of Huntsville and Exchange ment's conclusion. The existing relationship was Security of Birmingham as competitors for corestablished in 1968 in furtherance of Central's respondent balances in the northern Alabama unsuccessful attempt to merge with State National. area (for banks not wishing to have correspondent This affiliation is neither strong nor irreversible relations with a competitor); consummation of this and in no way minimizes the anticompetitive con- proposal will further reduce the remaining corsequences resulting from this proposal. By fore- respondent alternatives for smaller nonaffiliated closing the possibility of future disaffiliation, banks in northern Alabama. moreover, the majority's action eliminates the In our view, Applicant points to no significant more desirable alternative of each bank becoming new service or other benefit to any area of the the lead bank in competing statewide bank hold- State that outweigh the adverse effects that this ing companies. Both State National and Central formation will have on competition. Additional are among the few banks in the State of Alabama programs to be instituted by Applicant are prescapable of supporting such organizations. ently available either from each bank inde- Additionally, although only a small amount of pendently or from other banking organizations in retail banking and correspondent competition the State. As the Board observed in its considerapresently exists between Central and State Nation of the Charter New York application (1968 tional, a significant amount of potential competi- Federal Reserve BULLETIN 925), "there is no evition in the State's wholesale banking market will dence that such a broadened and improved service be foreclosed by approval of this application. Cenoffering could not be accomplished by means less tral has rapidly grown to its present position of inimical to the preservation of future competition." second in the State in correspondent balance ($30 million) through the aggressive solicitation of such On all the facts of record, we conclude that the accounts. State National has the capability (al- proposed formation will lessen potential competithough not presently utilized) of becoming a tion without offsetting public benefit, and that the strong competitor for correspondent balances. Ap- application should be denied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements CHANGES IN BOARD STAFF TRANSACTIONS IN FEDERAL AGENCY SECURITIES The Board of Governors of the Federal Reserve System has announced the following changes in The Federal Open Market Committee of the its official staff: Federal Reserve System announced on September David C. Melnicoff, First Vice President of 16, 1971, that it had authorized outright purthe Federal Reserve Bank of Philadelphia, has chase and sale transactions in securities of Federal been named Deputy Executive Director of the agencies. The System's open market operations Board, effective October 12, 1971. have involved mainly transactions in U.S. Trea- Edwin J. Johnson, Director of the Division of sury issues. Transactions in Federal agency securi- Personnel Administration, has been designated ties will be initiated in the near future. Assistant to the Board effective November 1, 1971. The volume of securities issued by Federal Ronald G. Burke has been appointed Director agencies has been growing rapidly in recent years. of the Division of Personnel Administration to These securities are marketed to raise funds for a succeed Mr. Johnson, also effective on November variety of governmental lending activities in such 1, 1971. fields as housing, agriculture, and export financing. Mr. Melnicoff, in addition to serving in various System open market operations are conducted capacities in research and administration at the to carry out the objectives of monetary policy by Reserve Bank of Philadelphia, has been associated affecting the volume of bank reserves, money, with the Penn Fruit Company, the Pennsylvania bank credit, and conditions in credit markets. The Railroad, and Fels and Company. He holds B.A. purpose of the new authorization is to widen the and M.A. degrees from the University of Pennbase of System open market operations and at the sylvania. same time to add breadth to the market for agency Mr. Burke has been with Computer Sciences securities. Up to now, open market operations in Corporation, Falls Church, Virginia. Prior em- Federal agency issues have been confined to ployment has included positions with Booz, Allen repurchase agreements with securities dealers. Applied Research Corporation and the System Purchases and sales of Federal agency issues Development Corporation. He holds a B.S. will be conducted by the Federal Reserve Bank of degree from Ball State University and has done New York for the System Open Market Account. graduate study at American University and the Along with other System Account transactions, University of Southern California. they will be reflected in the weekly condition statement of the Federal Reserve Banks, which is ELECTION OF DIRECTOR issued every Thursday. C. Graham Berwind, Jr., was elected on October The Committee has approved initial guidelines 7 as a director of the Federal Reserve Bank of for operations in agency issues. They are de- Philadelphia to serve the remainder of a 3-year signed to assure that such operations will be conterm expiring December 31, 1971, and for a new sistent with other open market operations, to 3-year term beginning January 1, 1972. He is minimize technical operating problems, and to president of the Berwind Corporation in Philadelavoid dominating the Federal agency market. phia. He succeeds Henry A. Thouron, who re- The guidelines will be subject to review and signed on February 4, 1971. revision as operating experience is gained. Because the outstanding volume of many agency DEATH OF A DIRECTOR issues is small relative to that of U.S. Treasury Ronald E. Reitmeier, who had served since Janu- obligations. Federal Reserve operations in such ary 1, 1969, as a Board-appointed director of the issues will be on a limited scale. They will not be Louisville Branch of the Federal Reserve Bank of directed at supporting individual sectors of the St. Louis, died on October 16. He was president agency market or at channeling funds into issues of Catalysts and Chemicals Inc. in Louisville. of particular agencies. 866 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
ADMISSION OF STATE BANKS Colorado TO MEMBERSHIP IN THE Brighton Platte Valley Bank FEDERAL RESERVE SYSTEM Ohio The following banks were admitted to member- Cincinnati The Southern Bank ship in the Federal Reserve System during the Virginia period September 16, 1971, through October 15, Sterling Commonwealth Bank and 1971: Trust Company of Virginia 867 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
National Summary of Business Conditions Released for publication October 18 Industrial production and nonfarm employment increased in September and nondurable consumer increased in September following two months of goods expanded further. decline. Retail sales continued at advanced levels and wholesale commodity prices were somewhat EMPLOYMENT lower. Commercial bank credit continued to ex- Nonfarm payroll employment increased 300,000 pand. The money stock decreased, while the exin September. Manufacturing rose 130,000 after pansion in time and savings deposits accelerated. declining in the preceding 3 months, with the Yields on long-term securities declined further. largest gains in durable goods. The average workweek of manufacturing workers declined again by INDUSTRIAL PRODUCTION 0.2 hour to 39.6 hours reflecting widespread Industrial production in wSeptember rose 0.5 per reductions. The unemployment rate was little cent to an index of 105.3 (1967 = 100) from 104.8 changed, 6.0 per cent compared with 6.1 per cent reached in August (revised downward from last in August, as employment gains were largely month's estimate of 105.1). The September total offset by continued strong growth in the labor is still about 6 per cent below the 1969 high but 2 force. per cent above last November's auto strike low point. RETAIL SALES The September increase in the total index largely reflected partial recovery of about one- The total value of retail sales continued at adfourth in iron and steel production from a down- vanced levels in September and the early part of ward revised level in August. In the early part of October, according to early reports. Unit sales of October raw steel output showed some decline. domestic autos were about 12 per cent above the Production of both consumer goods and busi- July-August level and at an annual rate of around ness equipment increased somewhat in September, 9V2 million units. Sales of imported autos were while defense output, which was revised up- reduced from the record rate reached in August ward in recent months, is estimated to have de- reflecting partly the effects of dock strikes in clined. Auto assemblies remained at an annual curtailing domestic dealers' stocks. rate of 816 million units in September and early October. Production of other automotive products AGRICULTURE Crop prospects improved somewhat in September INDUSTRIAL PRODUCTION RATIO SCALE, 1967=100 to a level 12 per cent above last year and 8 per cent above the previous 1969 record. Large feed 120 and food grain harvests are in prospect and a heavy movement under Federal price support loans is anticipated. Output and marketings of livestock and products have continued to exceed the advanced levels of a year earlier. WHOLESALE AND CONSUMER PRICES Wholesale prices, seasonally adjusted, declined 0.4 per cent from August to September owing mainly to a decrease in prices of farm and food products. Prices of industrial commodities were slightly 1967 1969 1971 1967 1969 1971 lower reflecting reductions mainly for motor vehicles. Up to mid-October, average prices of F.R. indexes, seasonally adjusted. Latest figures: September. 868 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
commodities traded in the organized markets not over twice as fast as in August. This rise was limited by Federal ceilings continued to ease off. associated with a sharp increase in large negotia- Consumer prices rose 0.4 per cent seasonally ble CD's. Other time and savings deposits conadjusted in August, reflecting in the main advances tinued to expand at a moderate pace. occurring before the mid-August Federal price and Net borrowed reserves of member banks averwage freeze. Prices of services continued upward aged about $325 million over the five weeks endand there was a sharp increase in gasoline prices. ing September 29 compared with $635 million in August. Member bank borrowings at the Federal BANK CREDIT, DEPOSITS, AND RESERVES Reserve declined and excess reserves rose slightly. Commercial bank credit (adjusted for transfers of loans between banks and their affiliates) in- SECURITY MARKETS creased at an annual rate of about 10 per cent in September, somewhat slower than in August but Treasury bill yields fell by about 35 to 55 basis the same as for the entire third quarter. Growth points between mid-September and mid-October. in most major categories of loans accounted for The 3-month bill was bid at around 4.45 per cent a substantial part of the rise. In addition, a sizable in the middle of October, down from 4.85 per cent volume of municipal and Federal agency securities a month earlier. Over the same period, rates on was acquired following some reduction in such U.S. Government notes and bonds declined by holdings during August. These acquisitions were some 20 to 30 basis points. offset in large part by a continued decline in hold- Yields on new corporate securities were steady ings of U.S. Treasury securities. at a higher level through the first three weeks of The money stock declined at an annual rate of the period but declined to about the level of early 3.7 per cent in September following a relatively September by mid-October, while yields on seasmall increase in August. This brought the rise soned security issues remained steady. Municipal for the third quarter to 3 per cent, considerably security rates fell moderately on balance during below the 11 per cent second quarter rate. Expan- the period. sion in time and savings deposits increased in Common stock prices fell moderately on aver- September to an annual rate of about 16 per cent. age volume. PRICES INTEREST RATES 120 ALL COMMODITIES 110 FARM PRODUCTS ^ AND ^ 3 A^^ ^.-^iW^USTRIAL COMMODITIES 1 1969 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 average market yields for U.S. Govt, bonds maturing in 10 figures: Consumer, Aug.; Wholesale, Sept. years or more and for 90-day Treasury bills. Latest figures: week ending Oct. 9. 869 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
2 FEDERAL RESERVE BULLETIN • OCTOBER 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 Q2 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 A 104 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 Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation P Preliminary IPC Individuals, partnerships, and corporations SMSA Standard metropolitan statistical area r Revised A Assets rp L Liabilities Revised preliminary S Sources of funds I, II, U Uses of funds III, IV Quarters Amounts insignificant in terms of the parn.e.c. ticular unit (e.g., less than 500,000 when A.R. Not elsewhere classified the unit is millions) S.A. Annual rate (1) Zero, (2) no figure to be expected, or Monthly (or quarterly) figures adjusted for (3) figure delayed seasonal variation 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 instances: (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 Oct. 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: Par List, number Aug. 1971 A-97 Mar. 1971 A-70-A-71.9 1970 selected data (revised) June 1971 A-70—A-71.1 Annually Incoijie 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 • OCTOBER 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 i Special ury Drawing cur- Total B o ou u g t- ht r u c H e n h p e a d u l s e d r e r - c v o D a a a n u n i d s c n d - e - t s s Float 2 as O F s t e . h R ts e . r 3 Total 4 s G to o c ld k c a e R c rt i c i g f o i h c u t a n s t t e r s e o t i a n n u n c g t d y - right agreement Averages of daily figures 1939—Dec 2,510 2,510 83 2,612 17,518 2,956 1941—Dec 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec 20,345 20,336 142 1,117 21,606 22,879 4,629 1960—Dec 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—De c 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1966—De c 43,760 43,274 486 570 2,383 46,864 13,158 6.284 1967—De c 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—De c 52,529 52,454 75 765 3,251 56,610 10,367 6,810 1969—De c 57,500 57,295 205 1,086 3,235 204 64,100 10,367 6,841 1970—Sep t 59,903 59,625 278 607 2,832 216 64,619 11,300 400 7,049 Oct 59,533 59,360 173 462 2,933 734 64,708 11,117 400 7,069 Nov 60,393 60,004 389 425 2,933 314 65,132 11,117 400 7,100 Dec 61,688 61,310 378 321 3,570 032 66,708 11,105 400 7,145 1971—Ja n 62,068 61,941 127 370 3,636 216 67,363 10,732 400 7,157 Feb 62,350 62,051 299 328 2,974 065 66,797 10,732 400 7,188 Mar 62,719 62,381 338 319 2,671 896 66,691 10,732 400 7,235 63,371 63,153 218 148 3,047 103 67,747 10,732 400 7,291 May!!!!!!!!!!!!!! 64,714 64,368 346 330 2,704 076 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 65,652 349 820 3,001 1,150 71,052 10,332 400 7,437 Aug 66,324 66,143 181 804 2,572 991 70,749 10,184 400 7,460 Sept.f 67,106 66,794 312 501 2,956 900 71,550 10,132 400 7,523 Week ending— 1971—July 7 65,772 65,461 311 661 2,965 1,092 70,586 10,332 400 7,431 1 4 65,826 65,669 157 991 3,179 1,145 71,216 10,332 400 7,430 21 66,435 65,694 741 1,121 3,189 1,156 71,982 10,332 400 7,440 28 66,055 65,721 334 545 2,734 1,187 70,600 10,332 400 7,443 Aug. 4 66,182 65,822 360 764 2,583 1,222 70,819 10,332 400 7,443 11 66,158 65,872 286 593 2,517 1,257 70,585 10,246 400 7,453 18 66,067 65,956 1,179 2,692 1,044 71,029 10,132 400 7,457 25 66,353 66,353 771 2,711 726 70,615 10,132 400 7,465 Sept. 1 66,779 66,635 144 706 2,433 776 70,766 10,132 400 7,475 8 67,156 66,726 430 765 2,594 817 71,439 10,132 400 7,494 1 5 67,082 66,596 486 457 2,920 894 71,455 10,132 400 7,522 22^^ 66,687 66,687 328 3,615 923 71,603 10,132 400 7,532 29P 67,393 67,071 322 426 2,884 963 71,753 10,132 400 7,542 End of month 1971—July 65,841 6 65,841 778 2,618 1,209 70,501 10,332 400 7,445 Aug, 66,937 6 66,635 302 858 2,250 786 70,938 10,132 400 7,479 Sept.^' 67,627 6 67,627 198 3,137 1,001 72,014 10,132 400 7,547 Wednesday 1971—July 7 65,118 6 765,118 469 2,959 1,123 69,730 10,332 400 7.430 14 65,636 6 65,636 1,840 3,314 1,157 72,004 10,332 400 7.431 21 66,680 6 65,704 976 1,563 2,802 1,201 72,328 10,332 400 7,441 28 65,762 6 65,762 782 2,553 1,205 70,356 10,332 400 7,449 Aug. 4 67,216 6 65,841 1,375 655 2,479 1,281 71,729 10,332 400 7,446 66,017 6 65,902 115 573 2,386 1,336 70,359 10,132 400 7,457 18!!!!!!!!!!! 66,260 6 65,942 318 1,123 2,814 749 70,998 10,132 400 7,457 25 66,406 6 66,406 1,803 2,454 772 71,487 10,132 400 7,466 Sept. li' 67,337 6 66,635 702 989 2,259 828 71,551 10,132 400 7,490 8^ 67,483 6 66,741 742 338 2,568 857 71,381 10,132 400 7,512 15^^ 65,726 6'765,726 349 3,165 948 70,238 10,132 400 7,528 22P 66,587 6 66,587 941 3,085 961 71,622 10,132 400 7,539 29P 67,661 6 67,386 275 382 2,506 995 71,635 10,132 400 7,547 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • BANK RESERVES AND RELATED ITEMS A 5 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND REUTED ITEMS—Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank CCuurr-- reserves, Other reserves Period or date rreennccyy TTrreeaass-- with F.R. Banks Other F.R. iinn uurryy F.R. liacciirr-- ccaasshh ac- bilities cc tt uu iioo llaa nn -- hh mm oo gg lldd ss -- Tr u e r a y s - F ei o g r n - Other 2 counts 3 ca a p n it d a l 3 B F W a . n i R t k h . s c r C e a o n u n in c d r s - y Total Averages of daily figures 7,609 2,402 616 7: 9 248 11,473 11,473 .1939—Dec. 10,985 2,189 592 1,531 292 12,812 12,812 . 1941—Dec. 28,452 2,269 625 1,247 493 16,027 16,027 . 1945—Dec. 27,806 1,290 615 920 353 739 17,391 17,391 . 1950—Dec. 33,019 408 522 250 495 1,029 16,688 2,595 19,283 . 1960—Dec. 42,206 808 683 154 231 389 18,747 3,972 22,719 . 1965—Dec. 44,579 1,191 291 164 429 83 19,568 4,262 23,830 . 1966—Dec. 47.000 1,428 902 150 451 -204 20,753 4,507 25,260 . 1967—Dec. 50,609 756 360 225 458 -1,105 22,484 4,737 27,221 .1968—Dec. 53,591 656 1,194 146 458 2,192 23,071 4,960 28,031 .1969—Dec. 54,931 457 1,070 141 750 2,300 23,719 5,106 28,825 .1970—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 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 25,231 5,316 30,547 July 58,906 477 1,121 181 712 2,298 25,098 5,357 30,455 Aug. 59,012 466 1,621 151 712 2,296 25,347 5,493 30,840 Sept.'' Week ending— 58,671 460 1,535 170 707 2,307 24,898 5,415 30,313 .1971—July 7 58,182 460 1,778 162 721 2,264 24,811 5,443 30,254 58,955 470 1,602 166 703 2,183 26,074 4,858 30,932 58,683 488 1,383 137 708 2,236 25,142 5,481 30,623 58,691 484 1,121 174 746 2,322 25,456 5,438 30,894 .Aug. 4 59,014 475 1,157 169 726 2,406 24,737 5,593 30,330 11 59,112 473 1,038 176 730 2,190 25,298 5,307 30,605 18 58,875 479 1,153 184 681 2,253 24,986 5,125 30,111 25 58,711 473 1,213 194 691 2,324 25,167 5,352 30,519 .Sept. 1 59,063 464 1,318 165 711 2,402 25,341 5,514 30,855 59,354 458 1,388 139 708 2,226 25,236 5,615 30,851 .15 58,992 470 1,760 150 704 2,234 25,357 5,279 30,636 .22^ 58,685 473 2,009 146 718 2,299 25,496 5,586 31,082 .29'' End of month 58,558 479 1,115 162 754 2,291 25,321 5,438 30,759 .1971—July 58,890 452 987 122 669 2,361 25,467 5,354 30,821 Aug. 58,788 464 2,102 166 777 2,374 25,422 5,541 30,963 Sept." Wednesday 59,184 468 2,065 196 713 2,321 22,945 5,424 28,369 .1971—July 7 59,230 468 2,516 163 694 2,133 24.964 5,451 30,415 14 58,916 492 1,110 115 698 2,211 26,960 4,858 31,818 21 58,781 493 1,413 149 722 2,251 24,728 5,479 30,207 28 58,930 481 733 178 724 2,393 26,469 5,438 31,907 .Aug. 4 59,253 476 1,292 163 740 2,422 24,002 5,591 29,593 11 59,133 478 1,184 166 719 2,217 25,089 5,307 30,396 18 58,854 488 1,375 135 689 2,275 25,669 5,125 30,794 25 58,920 471 1,194 142 682 . 2,374 25,790 5,339 31,129 . Sept. 59,498 466 1,185 152 733 . 2,427 24.965 5,511 30,476 8f 59,332 465 1,386 139 767 2,210 23,999 5,610 29,609 .15^' 58,940 480 1,939 146 690 2,251 25,247 5,279 30,526 58,832 475 2,021 166 712 . 2,317 25,191 5,586 30,777 .29" 1 Includes Federal Agency issues held under repurchase agreements as on Wed. and end-of-month dates, see tables on F.R. Banks on following of Dec. 1, 1966 and Federal Agency issues bought outright as of Sept. 29, pages. See also note 2. 1971. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 6 BANK RESERVES AND RELATED ITEMS • OCTOBER 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 BBoorr-- Reserves Bor- T h o e t l a d l qu R ir e e - d 1 Excess B r F i a o n a . n w g R t k s - . s ss FF ee rr rr rr ee vv ee -- ee ee ss T h o e t l a d l qu R ir e e - d 1 Excess BB rr FF ii aa nn oo aa .. nn gg ww RR tt kk ss -- .. ss ss FF ee rr rr rr vv ee ee ee -- ee ss T h o el t d a l qu R ir e e - d 1 Excess B r F i a n o . a n g w R t k s . - s s F e r r r e e v - e e s 1939—Dec 11,473 6,462 5,01 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 3 1960—Dec 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 -4 1963—De c 20,746 20,210 536 327 209 3,951 3,895 56 37 19 1,056 1,051 5 -21 1964—De c 21,609 211,198 41 243 168 4,083 4,062 21 35 -14 1,083 1,086 -3 -31 1965—De c 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 -8 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 -5 1968—De c 27,221 26,766 455 765 -310 5,157 5,057 100 230 -130 1,199 1,184 15 -70 1969—De c 28,031 27,774 257 1,086 -829 5,441 5,385 56 259 -203 1,285 1,267 18 -9 1970—Sep t 28,825 28,553 272 607 -335 5,497 5,436 61 117 -56 1,316 1,310 6 -8 Oct 28,701 28,447 254 462 -208 5,583 5,542 41 12 29 1,307 1,309 -2 -13 Nov 28,558 28,438 120 425 -305 5,441 5,444 -3 60 -63 1,282 1,283 -12 Dec 29,265 28,993 272 321 -49 5,623 5,589 34 25 9 1,329 1,322 3 1971—Ja n 30,488 30,209 279 370 -91 5,976 5,917 59 40 19 1,387 1,392 -5 -6 Feb 29,880 29,679 201 328 -127 5,854 5,810 44 29 15 1,403 1,380 23 19 Mar 29,686 29,487 199 319 -120 5,664 5,703 -39 51 -90 1,375 1.384 -9 -25 Apr 29,885 29,745 140 148 -8 5,690 5,696 -6 15 -21 1,392 1.385 7 3 May 30,419 30,107 312 330 -18 5,837 5,791 46 113 -67 1,436 1,421 15 2 June 30,023 29,892 131 453 -322 5,637 5,674 -37 90 -127 1,387 1,405 -18 -39 July 30,547 30,385 162 820 -658 5,729 5,754 -25 86 — 111 1,407 1,408 -1 -29 Aug 30,455 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 SQpt.P 30,840 30,592 248 501 -253 5,684 5,675 9 38 -29 1,415 1,423 -12 Week ending— 1970—Sept. 2... 28,370 28,192 178 660 -482 5,303 5,288 15 79 -64 1,277 1,276 9... 28.931 28,516 415 763 -348 5,539 5,450 89 187 -98 1,311 1,293 18 29 -11 16... 28,921 28,565 356 500 -144 5,599 5,478 121 89 32 1,302 1,326 -24 -24 23... 28,394 28,441 -47 460 -507 5,296 5,380 -84 78 -162 1,315 1,289 26 14 30... 29,034 28,762 272 661 -389 5,581 5,476 105 103 2 1,319 1,340 -21 -39 1971—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 -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 -25 31... 29,940 29,564 376 257 119 5,847 5,714 133 133 1,390 1,379 11 -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... 29,938 29,85^ 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 -70 26.. 30,246 30,072 174 267 -93 5,768 5,781 -13 100 -113 1,435 1,416 19 1 June 2.. 30,276 29,991 285 646 -361 5,693 5,638 55 171 -116 1.387 1,396 -9 9.. 29,886 29,813 73 153 -80 5,648 5,680 -32 46 -78 1,414 1,413 1 16.. 30,225 29,959 266 403 -137 5,742 5,729 13 129 -116 1,473 1,467 6 23.. 29,919 29,709 210 619 -409 5,648 5,607 41 103 -62 1,338 1,351 77 -90 30.. 30,292 30,060 232 750 -518 5,676 5,699 -23 107 -130 1,405 1.394 July 7.. 30,313 30,036 277 661 -384 5,689 5,663 26 34 -8 1.388 1,374 14 14.. 30,254 30,249 5 991 -986 5,747 5,814 -67 252 -319 1,390 1,412 -22 21.. 30.932 30,650 282 1,121 -839 5,911 5,856 55 65 -10 1,464 1,451 116 -103 28.. 30,623 30.556 67 545 -478 5,671 5,718 -47 30 -77 1,383 1,384 7 -8 Aug. 4.. 30,894 30,460 434 764 -330 5,781 5,677 104 43 61 1,447 1,434 13 30,330 30,303 27 593 -566 5,625 5,699 -74 -74 1,419 1,431 -12 18!! 30,605 30,381 224 1,179 -955 5,816 5,748 68 ""342 -274 1,416 1,412 -27 25.. 30," 30,020 91 771 -680 5,456 5,522 -66 267 -333 1,387 1,383 4 Sept. 1.. 30,519 30,195 324 706 -382 5,679 5,561 118 116 2 1,398 1,399 -2 8.. 30,855 30,650 205 765 -560 5,719 5,759 -40 -40 1,428 1,423 5 1 15.. 30,851 30,604 247 457 -210 5,762 5,690 72 72 1.441 1,448 -7 -10 22P. 30,636 30,409 227 328 -101 5,484 5,578 -94 86 -180 1,393 1,412 -19 -28 29P. 31,082 30,729 353 426 -73 5,816 5,689 127 36 91 1,411 1,412 -1 -1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 BBoorrrrooww-- Reserves BBoorrrrooww-- PPeerriioodd iinnggss aatt FFrreeee iinnggss aatt FFrreeee FF..RR.. rreesseerrvveess FF..RR.. rreesseerrvveess Total Required 1 Excess BBaannkkss Total Required i Excess BBaannkkss held held 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 7,950 7,851 100 20 80 6,689 6,066 623 40 583 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 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. 11,407 11,375 32 369 -337 10,605 10,432 173 107 66 1970—Sept. 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 Nov. 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 Dec. 11,974 11,962 12 294 -282 11,151 10,938 213 35 178 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 Feb. 11,732 11,651 81 236 -155 10,915 10,749 166 16 150 Mar. 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 May 11,743 11,735 8 181 -173 11,256 11,078 178 161 17 June 11,939 11,929 10 441 -431 11,472 11,294 178 265 -87 11,871 11,883 -12 425 -437 11,474 11,324 150 208 -58 12,100 12,074 26 318 -292 11,641 11,420 221 141 80 Week ending— 11,232 11,242 -10 402 -412 10,558 10,386 172 179 -7 1970—Sept. 2 11,509 11,424 85 430 -345 10,572 10,349 223 117 106 9 11,445 11,376 69 317 -248 10,575 10,385 190 94 96 16 11,241 11,328 -87 320 -407 10,542 10,444 98 50 48 23 11,406 11,393 13 386 -373 10,728 10,553 175 154 21 30 11,766 11,759 7 253 -246 11,087 10,875 212 30 182 1971—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 Mar. 3 11,537 11,572 -35 244 -279 10,917 10,726 191 13 178 11,774 11,724 50 231 -181 10,881 10,717 164 13 151 17 11,567 11,613 -46 245 -291 10,897 10,767 130 15 115 24 11,752 11,694 58 221 -163 10,951 10,777 174 22 152 11,758 11,634 124 184 -60 10,976 10,777 199 13 186 11,622 11,702 -80 127 -207 10,909 10,696 213 6 207 ....14 11,807 11,826 -19 80 -99 11,022 10,863 159 4 155 11,910 11,955 -45 98 -143 11,192 11,054 138 14 124 28 12,044 11,939 105 101 4 11,389 11,210 179 27 152 May 5 11,826 11,752 74 42 32 11,177 10,993 184 18 166 12 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 June 2 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 11,786 11,876 -90 498 -588 11,331 11,147 184 241 -57 ...14 12,089 12,028 61 607 -546 11,468 11,315 153 333 -180 21 11,946 11,993 -47 296 -343 11,623 11,461 162 212 -50 12,094 11,973 121 429 -308 11,572 11,376 196 292 -96 11,856 11,898 -42 375 -417 11,430 11,275 155 218 -63 .11 11,883 11,901 -18 545 -563 11,490 11,320 170 261 -91 18 11,798 11,788 10 372 -362 11,470 11,327 143 132 11 25 11,935 11,896 39 404 -365 11,507 11,339 168 185 -17 SSeepptt.. 11 12,182 12,138 44 588 -544 11,526 11,330 196 173 23 88 12,140 12,098 42 324 -282 11,508 11,368 140 130 10 11,974 12,010 -36 146 -182 11,785 11,409 376 87 289 22'' 12,164 12,075 89 231 -142 11,692 11,553 139 159 -20 29^' 1 Beginning Sept. 12, 1968, amount is based on close-of-business fig- Total reserves held: Based on figures at close of business through Nov. ures for reserve period 2 weeks previous to report date. 1959; thereafter on closing figures for balances with F.R. Banks and opening 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 • OCTOBER 1971 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Basic reserve position Interbank Federal funds transactions Related transactions with U.S. Govt, securities dealers Less- Net- Gross transactions Net transactions Reporting banks week a e n n d d ing— s E e x r r c v e e e - s s s 1 r a o B t B w a o F n in r . k - R g s s . F t f i b e r u n N a d a n t e n e e n d t s r r k s - a . l S d u e r o f p i r c l u it s r P r e e e q s a r o u e v c r f i g r v e . e e n d s t c P ha u s r e - s Sales t a w c t T r o t a o i - o n t w n a s a s l - y 2 b c o b P u h f a a y u n n s i r k n e e - s g t s s b o S e a f a l n l n l i e k n e s s g t d L ea o t l a o e n rs s 3 de f r B i a r o n o o l g w e m r s r - - s 4 lo N a e n t s Total^46 banks 1971—August 4.... 183 165 5,190 -5,172 39.7 9,613 4.423 3,681 5,932 742 1,201 396 805 11.... 27 47 6,302 -6,322 48.6 10,608 4,306 3,264 7,344 ,042 1,046 436 610 18.... 71 560 6,195 -6,684 51.3 10,790 4,595 3,780 7,010 816 1,305 447 858 25.... -4 326 5,646 -5,975 47.1 10,347 4,701 3,718 6,629 983 1,677 388 1,289 Sept. 1 146 151 6,110 -6,114 47.8 10,329 4,219 3,584 6,745 635 1,593 355 1,238 8 74 286 7,711 -7,923 60.2 11,763 4,052 3,456 8,307 596 1,867 349 1,518 15.... 126 97 8,258 -8,230 62.9 12,323 4,065 3,666 8,657 398 2,174 339 1,835 21.... -20 134 8,066 -8,220 63.8 12,397 4,331 4,003 8,394 328 1,876 292 1,587 29.... 135 37 6,113 -6,016 46.2 10,537 4.424 3,635 6,902 789 1,504 291 1,213 S in New York City 1971—August 4 83 43 2,002 -1,962 38.1 3,011 990 2,020 18 971 75 896 11.... 4 2,872 -2,868 55.3 3,537 665 665 2,872 846 123 723 18. ... 61 338 2,879 -3,156 60.3 3,635 757 718 2,917 39 1,112 176 935 25.... -I 229 2,198 -2,428 48.4 3,135 937 776 2,360 161 1,298 211 1,087 Sept. I.... 107 99 2,529 -2,521 49.9 3,213 683 683 2,529 1,108 176 932 8.... 25 3,897 -3,871 74.0 4,415 518 518 3,897 1,198 194 1,004 15.... 78 3,768 -3,691 71.4 4,390 622 621 3,768 1,272 192 1,080 22.... -26 '86 3,436 -3,549 70.2 4,219 782 783 3,436 1,078 141 937 29.... 97 2,656 -2,559 49.5 3,312 657 657 2,656 961 94 867 38 outside New York City 1971—August 4 100 122 3,188 -3,210 40.8 6,603 3,415 2,691 3,912 724 230 321 -91 11.... 23 47 3,430 -3,454 44.1 7,071 3,641 2,600 4,471 1,042 200 314 -114 18.... 10 222 3,316 -3,528 45.3 7,154 3,838 3,062 4,092 777 194 271 -77 25.... -3 97 3,448 -3,548 46.2 7,212 3,764 2,942 4,270 822 379 177 203 Sept. 1.... 40 52 3,581 -3,593 46.4 7,116 3,536 2,900 4,216 635 485 179 306 8.... 49 286 3,815 -4,052 51.1 7,349 3,534 2,938 4,410 596 669 155 514 15.... 48 97 4,490 -4,540 57.3 7,933 3,443 3,045 4,889 398 901 147 755 22.... 7 49 4,629 -4,672 59.8 8,178 3,549 3,220 4,958 328 801 151 651 29.... 38 37 3,458 -3,457 44.0 7,225 3,768 2,979 4,247 789 542 197 346 5 in City of Chicago 1971—August 4 -I 1,422 -1,423 108.9 1,968 545 514 1,453 31 87 87 11.... -2 1,503 -1,505 115.3 1,972 469 462 1,510 7 43 43 18.... 2 31 1,449 -1,478 114.9 1,886 437 435 1,451 2 35 35 25.... 5 1,443 -1,438 114.1 2,007 564 549 1,457 15 95 95 Sept. 1.... 6 1,280 -1,274 99.9 1,861 581 559 1,302 22 93 93 8 9 1,291 -1,282 99.0 1,905 615 594 1,311 20 52 52 15.... -2 1,343 -1,345 101.9 1,892 549 549 1,343 128 128 22.... -7 1,206 -1,221 95.0 1,833 627 613 1,220 14 86 86 29.... -4 806 -810 63.0 1,471 665 665 806 93 93 33 others 1971—August 4.... 101 122 1,766 -1,787 27.2 4,635 2,869 2,176 2,459 693 144 321 -178 II.... 25 47 1,927 -1,949 29.9 5,099 3,173 2,138 2,962 1,035 157 314 -156 18.... 191 1,868 -2,050 31.5 5,269- 3,401 2,627 2,642 775 159 271 -112 25.... 97 2,005 -2,110 32.9 5,205 3,201 2,393 2,812 807 285 177 108 Sept. 1 52 2,301 -2,319 35.8 5,256 2,955 2,341 2,914 613 392 179 213 8.... 286 2,524 -2,770 41.7 5,443 2,919 2,344 3,100 576 617 155 462 15.... 97 3,147 -3,194 48.4 6,041 2,894 2,496 3,545 398 774 147 627 22.... 39 3,424 -3,450 52.8 6,345 2,922 2,608 3,738 314 715 151 565 29.... 37 2,651 -2,646 40.2 5,754 3,103 2,314 3,441 789 449 197 253 1 Based upon reserve balances, including all adjustments applicable to banks, repurchase agreements (purchases of securities from dealers the reporting period. Prior to Sept. 25,1968, carryover reserve deficiencies, subject to resale), or other lending arrangements. if any, were deducted. Excess reserves for later periods are net of all carry- 4 Federal funds borrowed, net funds acquired from each dealer by over reserves. clearing banks, reverse repurchase agreements (sales of securities to 2 Derived from averages for individual banks for entire week. Figure dealers subject to repurchase), resale agreements, and borrowings secured for each bank indicates extent to which the bank's weekly average pur- by Govt, or other issues. chases and sales are offsetting. NOTE.—Weekly averages of daily figures. For description of series 3 Federal funds loaned, net funds supplied to each dealer by clearing and back data, see Aug. 1964 BULLETIN, pp. 944-74. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Advances to and discounts for member banks Advances to all others under Advances and discounts under Advances under last par. Sec. 133 Federal Reserve Bank Sees. 13 and 13a 1 Sec. 10(b)2 S R e a 1 p t 9 t e . 7 1 3 o 0 n , Eff d e a c t t e i ve Pre ra v t io e us S R e a 1 p t 9 e t 7 . 1 3 o 0 n , Eff d e a c t t e i ve Pre ra v t io e us S R e a 1 p t 9 t e . 7 1 o 3 n 0, Eff d e a c t t e i ve Pre r v a i t o e u s Boston July 19, 1971 July 19, 1971 July 19, 1971 New York.... July 16, 1971 July 16, 1971 July 16, 1971 Philadelphia.. July 16, 1971 July 16, 1971 July 16, 1971 Cleveland July 23, 1971 July 23, 1971 July 23, 1971 Richmond.... July 23, 1971 July 23, 1971 July 23, 1971 Atlanta July 19, 1971 July 19, 1971 July 19, 1971 Chicago July 23, 1971 July 23, 1971 July 23, 1971 St. Louis July 16, 1971 July 16, 1971 July 16, 1971 Minneapolis.. July 19, 1971 July 19, 1971 July 19, 1971 Kansas City.. July 23, 1971 July 23, 1971 July 23, 1971 Dallas July 23, 1971 July 23, 1971 July 23, 1971 San Francisco July 16, 1971 July 16, 1971 July 16, 1971 1 Discounts of eligible paper and advances secured by such paper or by 2 Advances secured to the satisfaction of the F.R. Bank. Maximum U.S. Govt, obligations or any other obligations eligible for F.R. Bank maturity: 4 months. purchase. Maximum maturity: 90 days except that discounts of certain 3 Advances to individuals, partnerships, or corporations other than bankers' acceptances and of agricultural paper may have maturities not member banks secured by direct obligations of, or obligations fully over 6 months and 9 months, respectively. guaranteed as to principal and interest by, the U.S. Govt, or any agency thereof. Maximum maturity: 90 days. SUMMARY OF EARLIER CHANGES (Per cent per annum) Range F.R. Range F.R. Range F.R. Effective (or level)— Bank Effective (or level)- Bank Effective (or level)— Bank date All F.R. of date All F.R. of date All F.R. of Banks N.Y. Banks N.Y. Banks N.Y. In effect Dec. 31, 1945 1957—Aug. 9. 3 1965—Dec. 6. 23. 13. 1946—Apr. 25 Nov. 15. m May 10 Dec. 2. 3 1967—Apr. 7. 14. 1948—Jan. 12 1958—Jan. 22. 3 Nov. 20. 1 9 24. 23/4 27. 1950—A A u u g g . . 2 2 1 1 3 3 A M p a r r . . 2 1 1 7 1 8 3 . . . . imii 1968— A M p a r r . . 2 2 1 1 2 9 6 5 . . . . 25 May 9. Aug. 16. 1953—Jan. 2 1 3 6 S A e u p g t . . 2 1 1 3 5 2 . . . 2 iy 4 Dec. 2 3 1 0 0 8 . . . Oct. 24. 2 1954—Feb. 1 5 5 Nov. 7. 2 2 1 /2 1969—Apr. 8 4 . . M Ap ay r. 2 1 1 1 4 6 1959— M M a a y r . 2 1 9 6 6 . . . 3 3 1 1970_Nov. 1 1 1 1 3 6 . . . June 12. 1955—Apr. 14 Sept. 11. 4^ Dec. 1. 15 18. 4 4. May 2 11. Aug. 4 1960—June 3. 4 I971_jan. 8.. 12.'.'.'.'.'.'. 10. 31/i 15., Sept. 9 Aug. 1 1 2 4 . . l-A 2 19 2 . . , , Nov. is!!!!'.]! Sept. 9. 3 29., 23 Feb. 13.. 1963—July 2 1 6 7. . 19.. 1956—Apr. 13 2 0 July 16.. Aug. 24 1964—Nov. 24. 4 23.. 31 30. 4 In effect Sept. 30, 1971. t Preferential rate of Vi of 1 per cent for advances secured by U.S. Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 8, 2.15; Nov. 10, 2.375; 1956—Aug. Govt, obligations maturing in 1 year or less. The rate of 1 per cent was 24-29, 2.75; 1957—Aug. 22, 3.50; 1960—Oct. 31-Nov. 17, Dec. 28-29, continued for discounts of eligible paper and advances secured by such 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; Apr. 3-4, 2.50; June 29, 2.75; July paper or by U.S. Govt, obligations with maturities beyond 1 year. 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, 2.75; 1962—Mar. 20-21, 2.75; 1964—Dec. 10, 3.85; Dec. 15, 17, 22, 24, NOTE.—Rates under Sees. 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. 31. 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 1, 4.50. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 10 RESERVE AND MARGIN REQUIREMENTS • OCTOBER 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) TTTiiimmmeee dddeeepppooosss--iiitttsss Reserve Country Other EEEffffffeeeccctttiiivvveee dddaaattteee iii (((aaallllll EEEffffffeeeccctttiiivvveee dddaaattteee iii city banks banks SSaavv-- time deposits CC rree bb ee cc ss aa nn ii ee nn tt tt rr yy kk rr vv aa ss ee ll bb ss cc RR aa ee ii nn rr ee tt vv yy kk -- ee ss CC bbaa oo ttrr nn uu yy kk nn ss -- bbb ccclll aaa aaa ooo nnn sss fff sss kkk eee sss sss ))) $ U 5 n m de i r l- $ O 5 v m er i l- $ U 5 n m de i r l- $ O 5 v m er i l- ddee iinn pp gg oo ss ss .. $ U 5 n m de i r l- $ O 5 v m er i llion lion lion lion lion lion IIInnn eeeffffffeeecccttt DDDeeeccc... 333111,,, 111999444999 22222222222222222222 11118888 11112222 55 1966—July 14,21 6 16Vi 6 12 64 64 55 Sept. 8, 15 66 111999555111———JJJaaannn... 111111,,,111666 22222222223333333333 11119999 11113333 66 JJJaaannn... 222555,,, FFFeeebbb... 111............ 22222222224444444444 22220000 11114444 1967—Mar. 2 111999555333———JJJuuulllyyy 999 111 22222222222222222222 11119999 11113333 Mar. 16 1954—June 24, 16 22222222221111111111 55 JJJuuulllyyy 222999,,, AAAuuuggg... 111............ 22222222220000000000 111888 111222 11996688——JJaann.. 1111,, 1188 111166661111////2222 11117777 11112222 111122221111////2222 111999555888———FFFeeebbb... 222777,,, MMMaaarrr... 111............ ...777HHH 111111111^^^ MMMaaarrr... 222000,,, AAAppprrr... 111............ 1969—Apr. 17 11117777 111177771111////2222 111122221111////2222 11113333 AAAppprrr... 111777 Apr 24 1166VVii 11997700 OOcctt.. 11 55555 1960—Sept. 1 iiiiiiiiiimmmmmmmmmm Nov. 24 1122 IIInnn eeeffffffeeecccttt SSSeeepppttt... 333000,,, 111999777111 ... 111777 111777111^^^ 111222111///iii 111333 333 333 55555 Dec 1 uuummm 1962—July 28 PPPrrreeessseeennnttt llleeegggaaalll Oct. 25, Nov. 1 44 rrreeeqqquuuiiirrreeemmmeeennnttt::: MMMiiinnniiimmmuuummm 111000 777 333 333 333 MMMaaaxxxiiimmmuuummm 222222 111444 111000 111000 111000 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 Regulabanks. For changes prior to 1950 see Board's Annual Reports. tions D and M and appropriate supplements and amendments thereto. 2 Demand deposits subject to reserve requirements are gross demand 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation deposits minus cash items in process of collection and demand balances club accounts became subject to same requirements as savings deposits. due from domestic banks. 6 See preceding columns for earliest effective date of this rate. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. NOTE.—All required reserves were held on deposit with F.R. Banks 4 Since Oct. 16, 1969, member banks have been required under Regula- June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member tion M to maintain reserves against balances above a specified base due banks were allowed to count part of their currency and coin as reserves; from domestic offices to their foreign branches. Effective Jan. 7, 1971, the effective Nov. 24, 1960, they were allowed to count all as reserves. For applicable reserve percentage was increased from the original 10 per cent further details, see Board's Annual Reports. to 20 percent. Regulation D imposes a similar reserve requirement on bor- MARGIN REQUIREMENTS (Per cent of market value) 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 gmning 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 1958—Jan. 15. 70 70 1958—Jan. 16 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 ^l ay 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
OCTOBER 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: i Savings deposits 41/2 12 months or more.. 4 4 Other time deposits:2 Less than 12 months. 31/2 31/i Multiple maturity:3 30-89 days 4 fA 90 days-1 year... 1 year to 2 years., 5 2 years and over.. Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 12 months or more..., k 1 year to 2 years.. SVi 6 months to 12 months 4V2 5V2 2 years and over. . 90 days to 6 months... $100,000 and over: Less than 90 days 4 30-59 days 5^2 (4) (30-89 days) 60-89 days 53/4 (4) 90-179 days 51/2 5Vi 6 6V4 180 days to 1 year. }6V4 7 1 year or more. .. 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max- 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see NOTE.—Maximum rates that may be paid by member banks are estab- BULLETINS for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, lished by the Board of Governors under provisions of Regulation Q; p. 167. however, a member bank may not pay a rate in excess of the maximum 3 Multiple-maturity time deposits include deposits that are automati- rate payable by State banks or trust companies on like deposits under cally renewable at maturity without action by the depositor and deposits the laws of the State in which the member bank is located. Beginning that are payable after written notice of withdrawal. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6^4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6^/2 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 AAllll Item m b e a m nk b s e r Y N o e r w k C o it f y Other C b o a u n n k t s r y Item mm bb ee aa mm nnkk bb ss ee rr Y N o e r w k C o it f y Other C b o a u n n k t s r y City Chicago City Chicago Four weeks ending July 14, 1971 Four weeks ending Aug. 11, 1971 Gross demand—Total. .. 194,073 44,399 8,080 68,063 73,532 Gross demand—Total 191,258 43,619 7,889 66,821 72,930 Interbank 26,953 12,960 1,459 9,539 2,995 Interbank 26,492 12,978 1,357 9,261 2,895 U.S. Govt 5,700 971 233 2,261 2,237 U.S. Govt 5,014 858 251 1,840 2,064 Other 161,420 30,468 6,389 56,264 68,300 Other 159,753 29,782 6,281 55,719 67,971 Net demand 1 144,723 26,537 6,199 51,042 60,944 Net demand 1 143,776 25,837 6,203 50,750 60,987 Time 198,028 24,439 7,152 71,797 94,641 Time.' 199,711 24,828 7,316 72,11.5 95,451 Demand balances due Demand balances due from dom. banks 11,211 1,165 212 2,734 7,100 from dom. banks 10,637 1,090 122 2,633 6,793 Currency and coin 5,308 433 124 1,662 3,089 Currency and coin 5,343 436 118 1,658 3,131 Balances with F.R. Balances with F.R. Banks 24,887 5,257 1,256 10,129 8,245 Banks 25,352 5,311 1,310 10,338 8,393 Total reserves held 30,195 5,690 1,380 11,791 11,334 Total reserves held 30,695 5,747 1,428 11,996 11,524 Required 30,014 5,696 1,383 11,769 11,166 Required 30,492 5,738 1,425 11,973 11,357 Excess 181 -6 -3 22 168 Excess 203 9 3 23 167 1 Demand deposits subject to reserve requirements are gross demand NOTE.—Averages of daily figures, close of business. deposits minus cash items in process of collection and demand balances due from domestic banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
12 FEDERAL RESERVE BULLETIN • OCTOBER 1971 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month IIIttteeemmm 1971 1971 1970 Sept. 29 Sept. 22 Sept. 15 Sept. 8 Sept. 1 Sept. 30 Aug. 31 Sept. 30 Assets Gold certificate account 9,875 9,875 9,875 9,875 9,875 9,875 9,875 10,819 Special Drawing Rights certificate account 400 400 400 400 400 400 400 400 305 299 285 278 282 310 280 221 Discounts and advances: Member bank borrowings 382 941 349 338 989 198 858 852 Other Acceptances: Bought outright 55550000 48 50 5522 5522 51 5522 3366 Held under repurchase agreements 44441111 8833 8866 5555 5511 Federal agency obligations: Bought outright 66661111 6611 Held under repurchase agreements 33338888 118888 111177 6699 8800 U.S. Govt, securities: Bought outright: 22229999,,,,333344443333 28,783 27,922 2288,,993377 2288,,993377 29,584 2288,,993377 2244,,111100 Certificates—O ther NNootteess 34,719 34,583 34,583 34,583 34,513 34,719 34,513 32,758 BBoonnddss 3,263 3,221 3,221 3,221 3,185 3,263 3,185 2,732 TToottaall bboouugghhtt oouuttrriigghhtt 11 6677,,332255 1 66,587 1-265,726 11 6666,,774411 11 6666,,663355 1 67,566 6666,,663355 11 5599,,660000 HHeelldd uunnddeerr rreeppuurrcchhaassee aaggrreeeemmeennttss 223377 555544 558855 223333 337755 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 67,562 66,587 65,726 67,295 67,220 67,566 66,868 59,975 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllloooooooooaaaaaaaaannnnnnnnnsssssssss aaaaaaaaannnnnnnnnddddddddd ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss 68,134 67,576 66,125 67,956 68,464 67,876 67,902 60,994 CCCCCCCCCaaaaaaaaassssssssshhhhhhhhh iiiiiiiiittttttttteeeeeeeeemmmmmmmmmsssssssss iiiiiiiiinnnnnnnnn ppppppppprrrrrrrrroooooooooccccccccceeeeeeeeessssssssssssssssss ooooooooofffffffff cccccccccooooooooolllllllllllllllllleeeeeeeeeccccccccctttttttttiiiiiiiiiooooooooonnnnnnnnn 10,420 11,543 12,389 10,023 10,157 9,875 9,232 9,233 BBBBBBBBBaaaaaaaaannnnnnnnnkkkkkkkkk ppppppppprrrrrrrrreeeeeeeeemmmmmmmmmiiiiiiiiissssssssseeeeeeeeesssssssss 148 148 148 147 145 148 142 122 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss::::::::: DDDDDDDDDeeeeeeeeennnnnnnnnooooooooommmmmmmmmiiiiiiiiinnnnnnnnnaaaaaaaaattttttttteeeeeeeeeddddddddd iiiiiiiiinnnnnnnnn fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccuuuuuuuuurrrrrrrrrrrrrrrrrreeeeeeeeennnnnnnnnccccccccciiiiiiiiieeeeeeeeesssssssss 23 23 23 23 23 23 23 680 IIIIIIIIIMMMMMMMMMFFFFFFFFF gggggggggooooooooolllllllllddddddddd dddddddddeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiittttttttteeeeeeeeeddddddddd 333333333 144 144 144 144 144 144 144 187 AAAAAAAAAllllllllllllllllll ooooooooottttttttthhhhhhhhheeeeeeeeerrrrrrrrr 680 646 633 543 516 686 477 689 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll aaaaaaaaasssssssssssssssssseeeeeeeeetttttttttsssssssss 90,129 90,654 90,022 89,389 90,006 89,337 88,475 83,345 LLLLLLLLLiiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss FFFFFFFFF.........RRRRRRRRR......... nnnnnnnnnooooooooottttttttteeeeeeeeesssssssss 51,808 51,923 52,297 52,472 51,926 51,758 51,887 48,087 DDDDDDDDDeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss::::::::: 25,191 25,247 23,999 24,965 25,790 25,422 25,467 23,938 UUUUUUUUU.........SSSSSSSSS......... TTTTTTTTTrrrrrrrrreeeeeeeeeaaaaaaaaasssssssssuuuuuuuuurrrrrrrrreeeeeeeeerrrrrrrrr—————————GGGGGGGGGeeeeeeeeennnnnnnnneeeeeeeeerrrrrrrrraaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnnttttttttt 2,021 1,939 1,386 1,185 1,194 2,102 987 1,238 FFFFFFFFFooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn 166 146 139 152 142 166 122 136 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr::::::::: IIIIIIIIIMMMMMMMMMFFFFFFFFF gggggggggooooooooolllllllllddddddddd dddddddddeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiittttttttt 333333333 144 144 144 144 144 144 144 144 AAAAAAAAAllllllllllllllllll ooooooooottttttttthhhhhhhhheeeeeeeeerrrrrrrrr 568 546 623 589 538 633 525 581 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll dddddddddeeeeeeeeepppppppppooooooooosssssssssiiiiiiiiitttttttttsssssssss 28,090 28,022 26,291 27,035 27,808 28,467 27,245 26,037 DDDDDDDDDeeeeeeeeefffffffffeeeeeeeeerrrrrrrrrrrrrrrrrreeeeeeeeeddddddddd aaaaaaaaavvvvvvvvvaaaaaaaaaiiiiiiiiilllllllllaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy cccccccccaaaaaaaaassssssssshhhhhhhhh iiiiiiiiittttttttteeeeeeeeemmmmmmmmmsssssssss 7,914 8,458 9,224 7,455 7,898 6,738 6,982 6 920 582 580 605 607 619 627 617 626 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd aaaaaaaaaccccccccccccccccccrrrrrrrrruuuuuuuuueeeeeeeeeddddddddd dddddddddiiiiiiiiivvvvvvvvviiiiiiiiidddddddddeeeeeeeeennnnnnnnndddddddddsssssssss 88,394 88,983 88,417 87,569 88,251 87,590 86,731 81,670 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 734 734 734 734 733 734 731 691 CCCCCCCCCaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll pppppppppaaaaaaaaaiiiiiiiiiddddddddd iiiiiiiiinnnnnnnnn 702 702 702 702 702 702 702 669 299 235 169 384 320 311 311 315 OOOOOOOOOttttttttthhhhhhhhheeeeeeeeerrrrrrrrr cccccccccaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 90,129 90,654 90,022 89,389 90,006 89,337 88,475 83,345 TTTTTTTTToooooooootttttttttaaaaaaaaalllllllll llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss aaaaaaaaannnnnnnnnddddddddd cccccccccaaaaaaaaapppppppppiiiiiiiiitttttttttaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss CCCCCCCCCooooooooonnnnnnnnntttttttttiiiiiiiiinnnnnnnnngggggggggeeeeeeeeennnnnnnnnttttttttt llllllllliiiiiiiiiaaaaaaaaabbbbbbbbbiiiiiiiiillllllllliiiiiiiiitttttttttyyyyyyyyy ooooooooonnnnnnnnn aaaaaaaaacccccccccccccccccceeeeeeeeeppppppppptttttttttaaaaaaaaannnnnnnnnccccccccceeeeeeeeesssssssss pppppppppuuuuuuuuurrrrrrrrrccccccccchhhhhhhhhaaaaaaaaassssssssseeeeeeeeeddddddddd fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn cccccccccooooooooorrrrrrrrrrrrrrrrrreeeeeeeeessssssssspppppppppooooooooonnnnnnnnndddddddddeeeeeeeeennnnnnnnntttttttttsssssssss 260 261 267 269 245 259 245 235 MMMMMMMMMaaaaaaaaarrrrrrrrrkkkkkkkkkeeeeeeeeetttttttttaaaaaaaaabbbbbbbbbllllllllleeeeeeeee UUUUUUUUU.........SSSSSSSSS......... GGGGGGGGGooooooooovvvvvvvvvttttttttt,,,,,,,,, ssssssssseeeeeeeeecccccccccuuuuuuuuurrrrrrrrriiiiiiiiitttttttttiiiiiiiiieeeeeeeeesssssssss hhhhhhhhheeeeeeeeelllllllllddddddddd iiiiiiiiinnnnnnnnn cccccccccuuuuuuuuussssssssstttttttttooooooooodddddddddyyyyyyyyy fffffffffooooooooorrrrrrrrr fffffffffooooooooorrrrrrrrreeeeeeeeeiiiiiiiiigggggggggnnnnnnnnn aaaaaaaaannnnnnnnnddddddddd iiiiiiiiinnnnnnnnnttttttttteeeeeeeeerrrrrrrrrnnnnnnnnnaaaaaaaaatttttttttiiiiiiiiiooooooooonnnnnnnnnaaaaaaaaalllllllll aaaaaaaaaccccccccccccccccccooooooooouuuuuuuuunnnnnnnnntttttttttsssssssss 21,323 21,427 21,308 21,033 20,346 21,406 20,351 9,300 Federal Reserve Notes—-Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 55,212 55,245 55,332 55,241 55,139 55,154 55,161 51,471 Collateral held against notes outstanding: Gold certificate account 3,145 3,145 3,145 3,145 3,190 3,145 3,190 3,300 U.S. Govt, securities 53,480 53,480 53,440 53,440 53,440 53,480 53,440 49,700 Total collateral 56,625 56,625 56,585 56,585 56,630 56,625 56,630 53,000 1 See note 6 on p. A-5. 3 See note 1 (b) at top of p. A-75. 2 See note 7 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON SEPTEMBER 30, 1971 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e il i l a a - - C l l a e n v d e - m Ri o c n h d - At t l a a n- c C a h g i o - Lo S u t. i s M ap in o n lis e - K C s a i a t n s y - Dallas F c S r is a a c n n o - Assets Gold certificate account 9,875 493 2,906 409 818 852 414 1,215 366 137 423 229 1,613 Special Drawing Rights certif. acct... 400 23 93 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks 1,072 143 208 67 69 83 187 48 24 40 36 33 134 Other cash 310 10 32 28 36 40 43 17 7 27 1 41 Discounts and advances: Secured by U.S. Govt, securities... 196 49 43 83 Other 2 Acceptances: Bought outright 51 Held under repurchase agreements. Federal agency obligations: Bought outright 61 16 10 9 Held under repurchase agreements. U.S. Govt, securities: Bought outright 167,566 3,149 17,232 3,578 5,204 4,922 3,401 ,070 2,467 1,279 2,704 3,139 9,421 Held under repurchase agreements. Total loans and securities 67,876 3,161 17,349 3,624 5,211 4,930 3,408 11,163 2,469 1,281 2,708 3,142 9,430 Cash items in process of collection.. 13,221 742 2,060 654 950 996 1,314 2,314 695 562 854 864 1,216 Bank premises 148 2 8 3 21 13 16 17 14 19 18 9 8 Other assets: Denominated in foreign currencies. 23 2 6 3 3 IMF gold deposited 3 144 144 All other 686 167 34 ioi 23 10 26 "ioi Total assets. 93,755 4,626 22,973 4,826 7,181 6,995 5,437 14,974 3,624 2,064 4,108 4,351 12,596 Liabilities F.R. notes 52,830 2,856 12,903 3,033 4,309 4,641 2,564 9,232 2,004 892 1,968 2,072 6,356 Deposits: Member bank reserves 25,422 901 6,505 1,058 1,826 1,297 1,589 3,412 927 622 1,207 1,402 4,676 U.S. Treasurer—General account. 2,102 109 751 93 73 117 103 149 79 79 130 110 309 Foreign 166 9 4 29 10 17 10 12 28 6 4 10 23 Other: IMF gold deposit 3 144 144 All other 633 574 17 21 Total deposits. 28,467 1,022 8,003 1,163 1,917 1,441 1,708 3,592 1,013 707 1,347 1,525 5,029 Deferred availability cash items 10,084 638 1,451 507 750 771 1,020 1,783 525 414 697 631 897 Other liabilities and accrued dividends 627 30 160 33 49 46 31 102 23 13 23 29 88 Total liabilities 92,008 4,546 22,517 4,736 7,025 6,899 5,323 14,709 3,565 2,026 4,035 4,257 12,370 Capital accounts Capital paid in 734 191 109 93 Surplus 702 185 105 88 Other capital accounts. 31 51 45 Total liabilities and capital accounts.. 93,755 4,626 22,973 4,826 7,181 6,995 5,437 14,974 3,624 2,064 4,108 4,351 12,596 Contingent liability on acceptances ppuurrcc hased for foreign correspondents. 259 12 5 68 13 23 13 39 15 33 Federal Reserve Notes—Federal Reserve Agents' Accounts F.R. notes outstanding (issued to Bank) 5555,,115544 33,,002244 1133,,331111 33,,110088 44,,448866 44,,779977 2,747 99,,552222 22,,110055 929 2,062 22,,223300 6,833 Collateral held against notes outstanding: Gold certificate account 33,,114455 220000 550000 330000 550000 448855 11,,000000 115555 55 UU..SS.. GGoovvtt,, sseeccuurriittiieess 5533,,448800 22,,992200 1133,,000000 33,,000000 44,,110000 44,,441155 2,900 88,,775500 22,,003300 960 2,125 22,,228800 7,000 TToottaall ccoollllaatteerraall 56,625 3,120 13,500 3,300 4,600 4,900 2,900 9,750 2,185 960 2,125 2,285 7,000 1 See note 6 on p. A-5. 5 After deducting $191 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 $137 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 • OCTOBER 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 MMoonntthh Exch., c G p h r a u o s r s e - s s G s r a o le 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 s r a o le 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 s r a o le s s s m re s a d h t o e i u f r m t r s i p t , y - c G p h r a u o s r s e - s s G s r a o le s s s m E s a h x t o u i c r f r h ts i . t y tions 1970—Aug 11111111111111,,,,,,,,,,,,,,111111111111112222222222222277777777777777 111111111111110000000000000066666666666666 **** 11111111111111,,,,,,,,,,,,,,111111111111112222222222222277777777777777 111111111111110000000000000066666666666666 **** --2211 --112299 Sept 22222222222222,,,,,,,,,,,,,,666666666666665555555555555577777777777777 22222222222222,,,,,,,,,,,,,,333333333333336666666666666677777777777777 333300008888 22222222222222,,,,,,,,,,,,,,444444444444447777777777777744444444444444 22222222222222,,,,,,,,,,,,,,333333333333336666666666666677777777777777 333300008888 1177 9900 Oct 222222222222224444444444444455555555555555 111111111111118888888888888833333333333333 111133334444 222222222222224444444444444455555555555555 111111111111118888888888888833333333333333 111133334444 Nov 22222222222222,,,,,,,,,,,,,,888888888888887777777777777711111111111111 11111111111111,,,,,,,,,,,,,,333333333333339999999999999911111111111111 22222222222222,,,,,,,,,,,,,,777777777777771111111111111155555555555555 11111111111111,,,,,,,,,,,,,,333333333333339999999999999911111111111111 333777 66,,336622 888000 --66,,771122 Dec 33333333333333,,,,,,,,,,,,,,444444444444441111111111111144444444444444 22222222222222,,,,,,,,,,,,,,222222222222228888888888888800000000000000 22222222222222,,,,,,,,,,,,,,888888888888888888888888888833333333333333 22222222222222,,,,,,,,,,,,,,222222222222228888888888888800000000000000 555 333666555 1971_jan 11111111111111,,,,,,,,,,,,,,555555555555551111111111111155555555555555 11111111111111,,,,,,,,,,,,,,555555555555554444444444444477777777777777 332277 11111111111111,,,,,,,,,,,,,,555555555555551111111111111155555555555555 11111111111111,,,,,,,,,,,,,,555555555555554444444444444477777777777777 332277 Feb 55555555555555,,,,,,,,,,,,,,888888888888883333333333333322222222222222 55555555555555,,,,,,,,,,,,,,111111111111115555555555555533333333333333 55555555555555,,,,,,,,,,,,,,333333333333334444444444444477777777777777 55555555555555,,,,,,,,,,,,,,111111111111115555555555555533333333333333 --33,,773322 111111777777444444 44,,009922 Mar . 33333333333333,,,,,,,,,,,,,,111111111111114444444444444422222222222222 22222222222222,,,,,,,,,,,,,,555555555555552222222222222233333333333333 222444000 22222222222222,,,,,,,,,,,,,,666666666666660000000000000000000000000000 22222222222222,,,,,,,,,,,,,,555555555555552222222222222233333333333333 222444000 222222666666333333 Apr 22222222222222,,,,,,,,,,,,,,222222222222222222222222222299999999999999 11111111111111,,,,,,,,,,,,,,222222222222229999999999999988888888888888 555000 22222222222222,,,,,,,,,,,,,,000000000000003333333333333333333333333333 11111111111111,,,,,,,,,,,,,,222222222222229999999999999988888888888888 555000 2222 111111111111999999 ----2222 May 11111111111111,,,,,,,,,,,,,,222222222222229999999999999911111111111111 222222222222224444444444444488888888888888 11111111111111,,,,,,,,,,,,,,111111111111116666666666666633333333333333 222222222222224444444444444488888888888888 444466664444 444444666666 ----111133336666 June 11111111111111,,,,,,,,,,,,,,999999999999995555555555555555555555555555 11111111111111,,,,,,,,,,,,,,111111111111116666666666666655555555555555 333777 11111111111111,,,,,,,,,,,,,,888888888888889999999999999933333333333333 11111111111111,,,,,,,,,,,,,,111111111111116666666666666655555555555555 333777 88882222 333333888888 ----88882222 July 22222222222222,,,,,,,,,,,,,,000000000000006666666666666677777777777777 11111111111111,,,,,,,,,,,,,,666666666666661111111111111177777777777777 111222777 22222222222222,,,,,,,,,,,,,,000000000000006666666666666677777777777777 11111111111111,,,,,,,,,,,,,,666666666666661111111111111177777777777777 111222777 Aue 11111111111111,,,,,,,,,,,,,,888888888888881111111111111188888888888888 11111111111111,,,,,,,,,,,,,,000000000000002222222222222244444444444444 11111111111111,,,,,,,,,,,,,,777777777777770000000000000099999999999999 11111111111111,,,,,,,,,,,,,,000000000000002222222222222244444444444444 999911 8844 --444444 Outright transactions in U.S. Govt, securities—Continued RRReeepppuuurrrccchhhaaassseee BBaannkkeerrss'' aaagggrrreeeeeemmmeeennntttsss FFFFeeeeddddeeeerrrraaaallll aacccceeppttaanncceess (((UUU...SSS... GGGooovvvttt,,, NNNNeeeetttt aaaaggggeeeennnnccccyyyy 55--1100 yyeeaarrss OOvveerr 1100 yyeeaarrss ssseeecccuuurrriiitttiiieeesss))) cccchhhhaaaannnnggggeeee oooobbbblllliiiiggggaaaa---- MMMMoooonnnntttthhhh iiiinnnn UUUU....SSSS.... ttttiiiioooonnnnssss UUnnddeerr NNNNeeeetttt GGGGoooovvvvtttt,,,, ((((nnnneeeetttt rrrreeee---- rreeppuurr-- cccchhhhaaaannnnggggeeeeiiii c G p h r a u o s r s e - s s G sa ro le s s s o E t s r u h x r m i c i f t h t y a s . - c G p h r a u o s r s e - s s G s r a o le s s s o E t s r u h x r m i c i f t h t y a s . - c G h p r a u o s r s e - s s G s r a o le s s s ssss iiii eeee tttt cccc iiiieeee uuuu ssss rrrr ---- pppp mmmm uuuu aaaa rrrr gggg eeee cccc rrrr nnnn hhhh eeee tttt aaaa eeee ssss ssss ---- )))) eeee rr OO ii nn gg uu ee hh tt tt tt -- ,, mm aa cc gg hh nn ee rr aa nn ee ee ss tt tt ee ss ee -- ,, 1970—Aug 115500 33333333333333,,,,,,,,,,,,,,111111111111118888888888888811111111111111 22222222222222,,,,,,,,,,,,,,888888888888885555555555555522222222222222 11111111111111,,,,,,,,,,,,,,333333333333335555555555555511111111111111 333333111111 --------------44444444444444 333333000000 11111111111111,,,,,,,,,,,,,,444444444444440000000000000077777777777777 SSeepptt........ 6611 1166 33333333333333,,,,,,,,,,,,,,999999999999990000000000000066666666666666 33333333333333,,,,,,,,,,,,,,888888888888886666666666666611111111111111 2222222222222288888888888888 555555000000 33333333333333************** 222222111111 111111111111110000000000000011111111111111 OOcctt.. 33333333333333,,,,,,,,,,,,,,444444444444446666666666666655555555555555 33333333333333,,,,,,,,,,,,,,333333333333335555555555555533333333333333 4444444444444400000000000000 888888 ------111111444444 3333333333333344444444444444 NNNooovvv............ 222333 338866 111666 --3366 33333333333333,,,,,,,,,,,,,,888888888888886666666666666633333333333333 44444444444444,,,,,,,,,,,,,,111111111111112222222222222255555555555555 11111111111111,,,,,,,,,,,,,,222222222222221111111111111188888888888888 ------222222777777 11111111111111 111111333333 11111111111111,,,,,,,,,,,,,,222222222222220000000000000044444444444444 DDDeeeccc...... ... ... 111111333 444888 55555555555555,,,,,,,,,,,,,,111111111111110000000000000099999999999999 55555555555555,,,,,,,,,,,,,,333333333333333333333333333344444444444444 999999999999990000000000000088888888888888 ------666666111111 2222222222222211111111111111 ------555555000000 888888888888881111111111111199999999999999 111999777111 ^^^JJJaaannn...... ...... 22222222222222,,,,,,,,,,,,,,222222222222229999999999999988888888888888 22222222222222,,,,,,,,,,,,,,222222222222229999999999999988888888888888 --------------333333333333335555555555555599999999999999 22222222222222 --------------333333333333335555555555555577777777777777 FFFFFFeeeeeebbbbbb........................ 111111888888999999 --336600 iiiiiiiiiiii 44444444444444..............111111111111118888888888888833333333333333 44444444444444,,,,,,,,,,,,,,111111111111118888888888888833333333333333 666666666666667777777777777799999999999999 --------------55555555555555 666666666666667777777777777733333333333333 MMMMMMaaaaaarrrrrr........................ 222222000000555555 77774444 66666666666666,,,,,,,,,,,,,,555555555555556666666666666611111111111111 55555555555555,,,,,,,,,,,,,,222222222222224444444444444422222222222222 11111111111111,,,,,,,,,,,,,,666666666666669999999999999988888888888888 111888666 ************** 8888855555 11111111111111,,,,,,,,,,,,,,999999999999996666666666666688888888888888 AAAAAApppppprrrrrr............ ............ 666666222222 11116666 55555555555555,,,,,,,,,,,,,,000000000000008888888888888855555555555555 66666666666666,,,,,,,,,,,,,,444444444444440000000000000044444444444444 --------------444444444444443333333333333399999999999999 ---111888666 33333333333333 -----8888855555 --------------777777777777770000000000000077777777777777 MMMMMMaaaaaayyyyyy...... ............ 888888222222 --332277 44444444444444,,,,,,,,,,,,,,000000000000007777777777777766666666666666 44444444444444,,,,,,,,,,,,,,000000000000007777777777777766666666666666 11111111111111,,,,,,,,,,,,,,000000000000004444444444444433333333333333 88888888888888 4444488888 11111111111111,,,,,,,,,,,,,,000000000000009999999999999999999999999999 JJJJJJuuuuuunnnnnneeeeee 111111111111 1144 11111111111111,,,,,,,,,,,,,,111111111111116666666666666655555555555555 11111111111111,,,,,,,,,,,,,,111111111111116666666666666655555555555555 777777777777775555555555555544444444444444 --------------11111111111111 -----4444488888 777777777777770000000000000055555555555555 JJJJJJuuuuuullllllyyyyyy 33333333333333,,,,,,,,,,,,,,000000000000004444444444444444444444444444 33333333333333,,,,,,,,,,,,,,000000000000004444444444444444444444444444 333333333333332222222222222233333333333333 --------------77777777777777 333333333333331111111111111166666666666666 AAuugg 1166 --554477 88 22222222222222..............111111111111118888888888888844444444444444 11111111111111,,,,,,,,,,,,,,999999999999995555555555555511111111111111 11111111111111,,,,,,,,,,,,,,000000000000002222222222222277777777777777 6699 --------------33333333333333 5555 11111111111111,,,,,,,,,,,,,,000000000000007777777777777799999999999999 1 Net change in U.S. Govt, securities, Federal agency obligations, and NOTE.—Sales, redemptions, and negative figures reduce System holdbankers' acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total P st o e u rl n in d g s s A c u h s il t l r in ia g n s B fr e a lg nc ia s n C d a o n l a la d r i s a n D k a ro 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 a n Jap y a e n n e se g N u l e a i t n l h d d e e s r r s - f S ra w n is c s s 1968—Dec.. 2,061 1,444 433 165 3 1969—Dec., 1,967 1,575 199 60 125 4 1970—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 34 * 27 5 May 94 * 87 5 June 96 * 87 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 IIIttteeemmm 1971 1971 1970 Sept. 29 Sept. 22 Sept. 15 Sept. 8 Sept. 1 Sept. 30 Aug. 31 Sept. 30 Discounts and advances—Total 382 941 349 338 989 198 858 853 Within 15 days 380 939 348 337 988 196 857 851 16 days to 90 days 2 2 1 2 2 91 days to 1 year Acceptances—Total 91 48 50 135 138 51 107 87 Within 15 days 53 14 14 99 97 11 67 65 16 days to 90 days 38 34 36 36 41 40 40 22 91 days to 1 year U.S. Government securities—Total 222 666777,,,555666222 66,587 65,726 666777,,,222999555 666777,,,222222000 6677,,556666 666666,,,888666888 60,055 Within 15 daysi 222 444,,,444999888 4,209 3,078 444,,,111222999 444,,,000444000 22,,557755 222,,,555444222 3,086 16 days to 90 days 111777,,,555111666 17,511 17,650 111888,,,222000222 111888,,,222999444 1177,,551177 111888,,,999000444 11,569 91 days to 1 year 111555,,,888999666 15,355 15,485 111555,,,333444777 111555,,,333666888 1177,,882222 111555,,,999000444 13,880 Over 1 year to 5 years 222333,,,333222555 23,218 23,219 222333,,,333222333 222333,,,222444000 2233,,332255 222333,,,222444000 25,356 Over 5 years to 10 years 555,,,444111111 5,388 5,388 555,,,333888888 555,,,333777777 55,,441111 555,,,333777777 5,524 Over 10 years 999111666 906 906 999000666 999000111 991166 999000111 640 Federal agency obligations—Total 999999 111888888 111111777 6611 666999 Within 15 daysi 333888 111888888 111111777 666999 16 davs to 90 davs 91 days to 1 year 444000 444000 Over 1 vear to 5 vears 222111 222111 Over 5 years to 10 years Over 10 years 1 Holdings under repurchase agreements are classified as maturing 2 Excludes Federal agency obligations held under repurchase agreement. within 15 days in accordance with maximum maturity of the agreements. Total holdings of such obligations (outright and under repurchase agreement) are shown below. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts i Turnover of demand deposits (billions of dollars) PPPeeerrriiioooddd SS TT MM 22 oo SS 33 tt 33 AA aa ll '' ss N Le .Y ad . ing S 6 M o S t A he 's r s2 TT SS oo NN (( MM tt ee aa .. SS xx YY ll cc AA .. 22 ll )) .. '' 33 ss 22 SS oo MM 22 tt SS hh 2266 ee AA rr '' ss SS TT MM 22 oo SS 33 tt 33 AA aa ll '' ss N Le . a Y d . ing S 6 M o S t A he 's r s 2 TT SS oo NN (( MM tt ee aa .. SS xx YY ll cc AA .. 22 ll )) .. '' 33 ss 22 SS oo MM 22 tt SS hh 2266 ee AA rr '' ss 1970—July 10,207.8 4,324.3 2,508.2 5,883.6 3,375.3 73.1 145.3 79.4 53.6 43.1 Aug 10,550.5 4,770.6 2,478.8 5,779.9 3,301.1 75.7 162.8 77.9 52.5 42.2 Sept 10,552.0 4,668.1 2,502.9 5,883.9 3,381.0 75.3 161.0 77.9 53.0 42.8 Oct 10,780.2 4,899.8 2,497.4 5,880.5 3,383.0 78.1 175.9 78.4 53.4 43.2 Nov 10,533.9 4,824.0 2,420.1 5,709.9 3,289.8 75.6 168.5 75.8 51.6 41.8 Dec 10,896.5 5,016.1 2,480.1 5,880.3 3,400.2 77.0 170.6 76.7 52.4 42.6 1971—Jan 10,688.4 4,825.9 2,453.5 5,862.5 3,408.9 76.3 168.3 76.8 52.6 42.9 Feb 11,508.9 5,477.4 2,524.1 6,031.5 3,507.4 82.0 191.3 79.5 54.0 43.9 Mar 11,425.9 5,309.7 2,505.3 6,116.2 3,610.9 79.5 183.5 76.5 53.3 44.1 Apr 11,658.7 5,356.8 2,597.1 6,301.9 3,704.8 80.5 185.6 78.7 54.4 44.7 May '^11,119.2 4,903.9 2,573.9 '•6,215.3 '•3,641.4 '•76.6 171.2 77.9 53.4 43.7 June '•11,815.7 5,202.8 2,765.2 '^6,612.9 '•3,847.7 80.1 179.3 82.4 55.8 '•45.3 July '•11,766.2 5,147.4 2,773.9 '•6,618.9 ••3,845.0 79.8 178.9 82.7 55.7 45.1 Aug 12,366.4 5,704.7 2,795.7 6,661.5 3,865.8 83.7 198.7 83.4 56.0 45.2 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 • OCTOBER 1971 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency End of period in cu c la ir - 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 12 195 8 32,193 22,856 2,182 1,494 83 2,186 6,624 10,288 9,337 2,792 5,886 275 373 3 9 195 9 32.591 23,264 2,304 1,511 85 2,216 6.672 10,476 9,326 2,803 5,913 261 341 3 5 196 0 32,869 23,521 2,427 1,533 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 196 1 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 196 2 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 196 3 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 4 196 4 39,619 28,100 3.405 1,806 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 4 196 5 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 4 196 6 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 4 196 7 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 4 196 8 50,961 36,163 5,691 2.049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 4 196 9 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—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 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 July. 58,558 40,238 6,493 2,260 136 3,068 9,031 19,251 18,321 5,129 12,735 208 242 3 4 Aug. 58,904 40,442 6,537 2,267 136 3,058 9,045 19,398 18,462 5,162 12,845 207 241 2 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 TTToootttaaalll,,, ooouuuttt--- HHHeeelllddd bbbyyy ssstttaaannndddiiinnnggg,,, AAss sseeccuurriittyy FFoorr FFF...RRR... 1971 1970 KKKiiinnnddd ooofff cccuuurrrrrreeennncccyyy AAAuuuggguuusssttt 333111,,, aaggaaiinnsstt TTrreeaassuurryy FF..RR.. BBBaaannnkkksss 111999777111 ggoolldd aanndd ccaasshh BBaannkkss aaannnddd ssiillvveerr aanndd AAAgggeeennntttsss Aug. July Aug. cceerrttiiffiiccaatteess AAggeennttss 31 31 31 Gold 1111100000,,,,,111113333322222 ((99,,887755)) 22 225577 Gold certificates (((((99999,,,,,888887777755555))))) 33 99,,887744 Federal Reserve notes 5555555555,,,,,111116666622222 111333888 3333,,,,222277774444 555111,,,777555000 555111,,,444444888 444777,,,999000000 Treasury currency—Total 77777,,,,,555550000088888 777222 222288881111 777,,,111555444 777,,,111111111 666,,,777666999 SSttaannddaarrdd ssiillvveerr ddoollllaarrss 444444888888555555 3333 448822 448822 448822 Nonsilver dollars 222222999999 11116666 111333 Fractional coin 666666,,,,,,333333777777666666 55553333 222666777 6666,,,,000055555555 6666,,,,000011111111 5555,,,,666688889999 United States notes 333333222222333333 333322222222 333322222222 222299999999 In orocess of retirement^ 222222999999666666 222299995555 222299996666 222299999999 TToottaall——AAuugg.. 3311,, 11997711 5555 77772222,,,,888800002222 ((((9999,,,,888877775555)))) 444466668888 9999,,,,888877774444 3333,,,,555555556666 5588,,990044 July 31, 1971 5555 77772222,,,,888888880000 ((((11110000,,,,000077775555)))) 444488887777 11110000,,,,000077774444 3333,,,,777766660000 5588,,555588 Aug. 31, 1970 5555 66669999,,,,555599997777 ((((11111111,,,,000044445555)))) 444466668888 11111111,,,,000044444444 3333,,,,444411116666 5544,,666699 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 $144 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. * Redeemable from the general fund of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjusted Not seasonally adjusted Month or week MA Mz Mi Mz Ml (Ml plus time (M2 plus deposits Ml {Ml 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) i large time CD's) 1 1967—De c 183.1 345.6 528.5 188.6 350.1 533.3 1968—De c 197.4 378.2 572.6 203.4 383.0 577.5 1969—De c 203.6 387.1 588.4 209.8 392.0 593.5 1970_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 219.4 437.6 664.8 217.4 436.3 663.8 221.1 442.0 673.7 222.2 444.3 676.1 MA^.!! 223.9 447.3 682.4 219.7 444.3 679.1 June 225.6 451.4 689.4 223.6 449.6 688.0 July 227.5 454.1 695.2 225.8 452.6 694.0 Aug 228.0 455.9 699.4 224.7 452.5 695.5 SEPT.I^. .. 227.3 456.5 702.1 225.7 454.9 700.3 Week ending— 1971—Sept. 1. 227.5 455.9 224.2 452.6 8. 227.8 456.6 225.9 454.7 15. 227.1 455.8 227.9 457.1 22. 226.8 456.1 225.3 454.3 29P 226.7 456.4 223.4 453.2 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted 1 Commercial banks Commercial banks UUUU....SSSS.... MMMMoooonnnntttthhhh NNNooonnn--- NNNooonnn--- GGGGoooovvvvtttt,,,, oooorrrr bbbaaannnkkk bbbaaannnkkk ddddeeeeppppoooossss---wwwweeeeeeeekkkk CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt CCCuuurrr--- DDee-- Time and savings ttthhhrrriiifffttt iiiittttssss 5555 rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--- rrreeennncccyyy mmaanndd deposits iiinnnssstttiiitttuuu--ddeeppooss-- tttiiiooonnnsss 444 ddeeppooss-- tttiiiooonnnsss 444 iittss iittss 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—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 28.4 226.1 254.4 238.4 5.4 July 51.7 175.8 30.1 226.6 256.8 241.1 51.9 173.8 29.5 226.9 256.4 241.4 6.8 Aug 51.8 176.2 30.3 227.8 258.2 243.5 51.9 172.7 31.2 227.8 259.1 243.0 6.8 Sept.^ 52.0 175.3 32.4 229.2 261.6 245.6 52.0 173.8 32.1 229.2 261.4 245.3 7.4 Week ending— 1971_Sept 1 51.8 175.8 30.8 228 4 259.1 51.4 172.8 31.6 228.4 260.0 8.3 8 5555522222.....00000 111117777755555.....88888 3333311111.....55555 222222222288888.....88888 222226666600000.....33333 5555522222.....66666 111117777733333.....33333 3333311111.....99999 222222222288888.....88888 222226666600000.....77777 66666.....66666 15 5555522222.....00000 111117777755555.....11111 3333311111.....99999 222222222288888.....77777 222226666600000.....66666 5555522222.....11111 111117777755555.....88888 3333311111.....44444 222222222299999.....22222 222226666600000.....66666 66666.....33333 22 5555522222.....00000 111117777744444.....88888 3333322222.....77777 222222222299999.....33333 222226666622222.....00000 5555511111.....99999 111117777733333.....44444 3333322222.....11111 222222222299999.....11111 222226666611111.....22222 88888.....00000 29^^ 5555511111.....88888 111117777744444.....99999 3333333333.....55555 222222222299999.....77777 222226666633333.....22222 5555511111.....44444 111117777722222.....11111 3333333333.....00000 222222222299999.....77777 222226666622222.....88888 88888.....99999 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 • OCTOBER 1971 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.i Deposits subject to reserve requirements 2 TToottaall mmeemmbbeerr bbaannkk ddeeppoossiittss pplluuss nnoonnddeeppoossiitt S.A. N.S.A. iitteemmss 33 PPPPeeeerrrriiiioooodddd TTToootttaaalll NNNooonnn--- Demand Demand bbbooorrrrrrooowwweeeddd RRReeeqqquuuiiirrreeeddd TTiimmee TTiimmee TToottaall aanndd TToottaall aanndd SS..AA.. NN..SS..AA.. ssaavviinnggss Private U.S. ssaavviinnggss Private U.S. Govt. Govt. 1967—Dec 2255..9944 2255..6688 2255..6600 227733..55 114499..99 111188..99 44..66 227766..22 114488..11 112233..66 44..55 1968—Dec 2277..9966 2277..2222 2277..6611 229988..22 116655..88 112288..22 44..22 330011..22 116633..88 113333..33 44..11 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—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 3.7 344.1 198.9 139.4 5.7 348.0 348.4 Aug 31.65 30.87 31.47 347.1 199.9 141.1 6.1 344.6 200.8 138.1 5.8 351.0 348.6 Sept.?' 32.07 31.64 31.91 349.5 202.9 140.3 6.3 348.1 202.7 139.2 6.2 353.5 352.1 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. Eff"ective 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, Washinated from time deposits for reserve purposes. Jan. 1969 data are not ington, D.C. 20551. comparable with earlier data due to the withdrawal from the System on Jan. 2, 1969, of a large member bank. LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Securities Securities DDDaaattteee TToottaall 11,,22 LLooaannss 11,, 22 TToottaall 11,,22 LLooaannss 11,, 22 U.S. Other 2 U.S. Other 2 Govt. Govt. 1965—Dec. 31 294.4 192.6 57.1 44.8 301.8 197.4 59.5 44.9 1966—Dec. 31 310.5 208.2 53.6 48.7 317.9 213.0 56.2 48.8 1967—Dec. 30 346.5 225.4 59.7 61.4 354.5 230.5 62.5 61.5 1968—Dec. 31 384.6 251.6 61.5 71.5 393.4 257.4 64.5 71.5 1969—Dec. 313 401.3 278.1 51.9 71.3 410.5 284.5 54.7 71.3 1970—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. 28 449.2 295.4 60.2 93.7 449.3 295.1 60.0 94.2 May 26 453.9 298.9 60.0 95.0 451.8 298.2 58.8 94.9 June 30 458.7 299.2 62.9 96.6 462.8 305.2 60.3 97.4 July 28 461.3 301.7 61.8 97.9 461.2 303.8 59.3 98.2 Aug. 25 466.5 307.4 61.6 97.6 463.2 306.5 58.7 98.1 Sept. 29^^ 470.1 310.4 60.7 99.0 469.4 310.8 58.7 99.9 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
OCTOBER 1971 • BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and capital Total Bank credit assets, Date c c s G S e a a to o r D t n e t c d l R i d s f k i ! - T r s c o e r u i t e n u n u a r a g y c r t n - - s y d - - Total Lo n a e 2 n t s Total U.S. . s b C T a a a o v r n n e i m n d k a g s l s . s u ry R F s B e e e a s c d n e u e k r r r v i s a t e i l e s Other3 O r s i e t ti h c e u e s - r c l T n a i i a a n o t p e i n b e e t i t d t a t s i - a l l - l, c d u e T r a p o r n o e t d s a n i l c t s y 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—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 7,300 589,300 351,100 128,300 63,400 64,000 900 110,000 607,800 544,300 63,400 May 26. 10,700 7,400 594,700 355.300 128,100 62.200 64,900 900 111,300 612,800 550,400 62,300 June 30. 10,732 7,420 608,204 363.301 130,479 63,565 65,518 1,396 114,424 626,356 560,032 66,324 July 28. 10,700 7,400 605,300 360,100 129,700 62,800 65,800 1,100 115,400 623,400 559,500 64,000 Aug. 25. 10,500 7,500 611,300 365,700 130,000 62,200 66,400 1,400 115,600 629,300 563,500 65,800 Sept. 292^ 10,500 7,500 617,300 368,200 131,400 62,300 67,600 1,600 117,700 635,300 567,300 68,000 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 u n s c r k id - y s e d ju e m D s p a a t o d e e n s - - d d it 7 s Total o b r u C e a t n u n s c r i k d - y s e d ju e m D s p a a t o d e e n s - - d d it ? s Total b m C a e n o r k m c s i - a » l b M s a a u n v t i k n u s g a s 9 l S P t a S e o v y m s i s n t a - g 3 l s n e F e i o g t r n 1 - , 0 T h c i r u n o a e r g l s a y d s h s - - s b c a a a o A v n n m i t d n k l s g . 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—Sept. 30.. 203,500 47,200 156,300 202,200 47,300 154,900 289,400 219,500 69,900 2,400 400 8,800 1,200 Oct. 28.. 201,800 47,400 154,400 202,500 47,300 155,300 292,100 221,900 70,200 2,600 500 6,600 1,300 Nov. 25.. 202,300 47,600 154,700 205,500 48,900 156,600 294,900 224,400 70,500 2,500 500 6,200 800 Dec. 31.. 209,400 47,800 161,600 219,422 49,779 169,643 302,591 230,622 71,969 3,148 431 8,409 1,156 1971—Jan. 27.. 203,300 48,300 155,000 205,900 47,600 158,300 307,600 235,000 72,600 2,500 500 9,500 1,200 Feb. 24.. 204,900 48,500 156,400 203,800 47,900 155,900 313,900 240,400 73,500 2,500 500 7,500 1,400 Mar. 31.. 214,100 49,300 164,800 208,200 48,800 159,400 322,100 247,000 75,100 2,500 500 5,000 900 Apr. 28.. 207,200 48,900 158,300 207,400 48,500 158,800 324,200 248,300 75,900 2,300 500 8,600 1,400 May 26.. 212,400 49,500 162,900 209,900 49,400 160,500 328,400 251,700 76,800 2,300 500 8,500 900 June 30.. 217,900 50,000 167,900 215,010 50,491 164,519 331,873 253,651 78,222 2,482 454 8,939 1,274 July 28.. 213,900 50,400 163,500 213,700 50,500 163,200 334,000 255,800 78,200 2,500 500 7,400 1,400 Aug. 25.. 214,700 50,300 164,400 213,000 50,600 162,300 336,300 257,700 78,600 2,500 500 10,000 1,400 Sept. 293'. 213,800 50,400 163,400 212,400 50,500 161,900 340,600 261,400 79,200 2,400 500 9,500 2,000 1 Includes Special Drawing Rights certificates beginning January 1970. 8 See first paragraph of note 2. 2 Beginning with data for June 30, 1966, about $1.1 billion in "Deposits 9 Includes relatively small amounts of demand deposits. Beginning with accumulated for payment of personal loans" were excluded from "Time June 1961, also includes certain accounts previously classified as other liadeposits" and deducted from "Loans" at all commercial banks. These bilities. changes resulted from a change in Federal Reserve regulations. See table 10 Reclassification of deposits of foreign central banks in May 1961 re- (and notes). Deposits Accumulated for Payment of Personal Loans, p. A-32. duced this item by $1,900 million ($1,500 million to time deposits and $400 See footnote 1 on p. A-23. million to demand deposits). 3 After June 30, 1967, Postal Savings System accounts were eliminated from this Statement. 4 See second paragraph of note 2. NOTE.—For back figures and descriptions of the consolidated condition 5 Figures for this and later dates take into account the following changes statement and the seasonally adjusted series on currency outside banks and (beginning June 30, 1969) for commercial banks: (1) inclusion of con- demand deposits adjusted, see "Banks and the Monetary System," Section solidated reports (including figures for all bank-premises subsidiaries and 1 of Supplement to Banking and Monetary Statistics, 1962, and BULLETINS other significant majority-owned domestic subsidiaries) and (2) reporting for Jan. 1948 and Feb. 1960. Except on call dates, figures are partly estiof figures for total loans and for individual categories of securities on a mated and are rounded to the nearest $100 million. gross basis—that is, before deduction of valuation reserves. See also note 1. For description of substantive changes in official call reports of <> Series began in 1946; data are available only for last Wed. of month. condition beginning June 1969, see BULLETIN for Aug. 1969, pp. 642-46. 7 Other than interbank and U.S. Govt., less cash items in process of collection. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 20 COMMERCIAL BANKS • OCTOBER 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits TTTToooottttaaaallll aaaasssssssseeeettttssss---- Secur ities TTTToooottttaaaallll Ii iterban k3 Other TTTToooottttaaaallll NNNNuuuummmm---- CCCCaaaasssshhhh lllliiiiaaaa---- BBoorr-- ccccaaaappppiiiittttaaaallll bbbbeeeerrrr CCCCllllaaaassssssss ooooffff bbbbaaaannnnkkkk aaaasssssssseeeettttssss 3333 bbbbiiiilllliiiittttiiiieeeessss rrooww-- aaaacccc---- ooooffff aaaannnndddd ddddaaaatttteeee TTToootttaaalll LLLoooaaannnsss aaaannnndddd TTToootttaaalll 333 Demand iinnggss ccccoooouuuunnnnttttssss bbbbaaaannnnkkkkssss 111 UU..SS.. ccccaaaappppiiiittttaaaallll DDee-- TTrreeaass-- OOtthheerr mmaanndd TTiimmee TTiimmeess uurryy 22 ccccoooouuuunnnnttttssss 4444 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 I60: ,312 i5o: ,227 14,065 105 ,921 30,241 219 8,950 14,011 1947_Dec. 31 6. 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 11 ,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 7. 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-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 3io:, 380 61 ,620 91 ,500 94,, 350 580:, 930 483,, 410 30 ,640 1 ,990 4 ,520 198,, 860 247,460 22,130 43,530 13,713 Apr. 28... 467,030 312:, 840 60 ,030 94 ,160 88,, 680 578:, 200 479,, 640 26 ,430 2 ,020 8 ,150 194:, 310 248,730 24,070 43,740 13,717 May 26... 469,010 315:, 380 58 ,770 94 ,860 84:, 530 576:, 610 478:, 570 24 ,400 2 ,080 7 ,900 191:, 930 252,260 23,390 43,910 13,720 June 30... 480,524 322:, 886 60 ,254 97 ,383 96:, 141 599:, 429 503:, 018 31 ,313 2 ,207 8 ,412 206. ,918 254,168 22,547 45,311 13,729 July 28... 478,300 320 ,870 59 ,280 98 ,150 85:, 880 587:, 470 489:, 140 26 ,650 2 ,030 6 ,790 191., 310 256,360 24,050 44,800 13,734 Aug. 25. .. 482,230 325:, 450 58 ,720 98 ,060 85:, 300 591:, 080 491:, 180 26 ,380 2 ,110 9 ,390 195., 020 258,280 24,620 44,980 13,739 Sept. 29 f. 489,620 330 ,990 58 ,740 99 ,890 88;, 190 602;, 050 497;, 530 27;, 050 2 ,500 8 ,920 191:, 180 261,880 26,850 45,110 13,739 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 31., 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 7. 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—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 ,126 159,, 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... 378,233 259 ,530 44 ,038 74:, 665 84,, 743 482,, 225 400,, 973 29:, 965 1 ,980 6 ,984 165,, 827 196,218 21,700 35,822 5,736 July 28... 376,133 257:, 988 42 ,844 15., 301 75,, 342 471,, 089 388,, 088 25:, 436 1 ,804 5 ,496 157:, 436 197,916 23,131 35,555 5,730 Aug. 25... 379,269 261:, 993 42 ,337 74:, 939 74,, 807 473,, 923 389,, 558 25 ,169 1 ,883 7 ,907 155:, 336 199,263 23,749 35,723 5,730 Sept. 29... 385,379 266:, 569 42:, 368 16 ,442 77,, 361 483, ,049 394,, 598 25;, 829 2 ,274 1 ,369 157;, 000 202,126 25,843 35,827 5,730 Reserve city member: New York City:8 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 1 ,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 8I: ,364 63 ,900 8 ,964 622 888 33 ,351 20,076 2,733 6,137 12 1969—Dec. 31 7. 60,333 48 ,305 5 ,048 6 ,980 22;, 349 81:, 753 62;, 381 10 ,349 268 694 36 ,126 14,944 4,405 6,301 12 1970—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. 21... 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 61., 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... 61,059 47 ,243 5 ,116 8 ,700 26 ,200 92 ,767 73:, 710 15 ,221 937 1 ,199 32 ,816 23,536 4,531 6,860 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 Aug. 25... 60,886 47 ,659 4 ,793 8 ,434 21 ,431 88 ,217 61 ,392 11 ,918 939 1 ,564 28 ,578 24,393 6,201 7,078 12 Sept. 29... 61,997 48 ,700 4 ,713 8 ,584 23 ,254 90 ,982 68 ,633 12 ,471 ,013 1 ,283 29 ,229 24,637 6,818 7,061 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 Interbank 3 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 U.S. capital Total 3 Treas- Other ac- De- Time Times ury 2 counts 4 mand U.S. Govt. Other Reserve city member fcont.): City of Chicago: 8 9 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 ^ 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—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 30 16,477 11,777 1,736 2,964 3,080 20,477 15,636 1,489 85 317 6,648 7,097 2,359 1.637 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 Aug. 25 16,346 12,113 1,528 2,705 3,089 20,364 15,234 1,365 142 380 5,997 7,350 2,447 1.638 9 Sept. 29 16,704 12,273 1,671 2,760 2,756 20,438 15,571 1,339 191 374 6,028 7,639 1,952 1,649 9 Other reserve city: 8 9 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 7 121,324 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_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 97,061 14,552 25,713 30,901 175,607 142,776 10,166 735 2,954 57,622 71,299 12,153 12,826 156 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 Aug. 25 137,513 98,538 13,132 25,843 27,341 172,142 138,865 9,111 667 3,366 54,235 71,486 12,375 12,854 156 Sept. 29 140,060 100,339 13,121 26,600 27,832 175,407 140,334 9,237 846 2,982 54,557 72,712 13,927 12,922 156 Country member: 8.9/ 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 1,281 66,578 73,873 804 11,807 5,796 1969—Dec. 317 140,715 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—Sept. 30 146,519 95,398 21,030 30,091 22,640 174,262 151,404 2,591 84 2,441 63,723 82,565 2,007 13,438 5,607 Oct. 28 147,728 95,679 21,311 30,738 21,606 174,556 151,062 2,572 81 2,123 62,818 83,468 2,350 13,499 5,604 Nov. 25 149,070 96,503 21,570 30,997 22,516 176,920 153,125 2,652 81 1,879 64,353 84,160 2,273 13,572 5,596 Dec. 31 154,130 99,404 22,586 32,140 25,448 184,635 161,850 3,387 135 2,592 69,806 85,930 1,836 13,807 5,589 1971—Jan. 27 152,818 97,686 22,513 32,619 22,336 180,086 157.059 2,721 81 2,316 64,380 87,561 2,178 13,676 5,584 Feb. 24 154,467 98,374 22,916 33,177 22,119 181,664 158,145 2,693 81 2,337 63,287 89,747 2,446 13,764 5,577 Mar. 31 156,551 99,673 22,695 34,183 23,925 186,072 162,273 2,862 81 1,393 65,677 92,260 2,361 13,826 5,574 Apr. 28 158,579 100,832 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 30 163,371 103,449 22,634 37,289 24,563 193,374 168,852 3,087 224 2,512 68,742 94,286 2,656 14,499 5,559 July 28 163,225 102,754 22,955 37,516 23,059 191,971 167,088 2,776 135 2,281 66,784 95,112 2,866 14,128 5,553 Aug. 25P 164,524 103,683 22,884 37,957 22,946 193,200 168,067 2,775 135 2,597 66,526 96,034 2,726 14,153 5,553 Sept. 29^^ 166,618 105,257 22,863 38,498 23,519 196,222 170.060 2,782 224 2,730 67,186 97,138 3,146 14,195 5,553 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 22 COMMERCIAL BANKS • OCTOBER 1971 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CUSS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank 3 Other FRS membership Cash lia- Bor- Total Numand FDIC assets 3 bilities row- capital ber insurance Total Loans and Total 3 Demand ings ac- of U.S. Other capital De- Time counts banks Treas- 2 ac- mand Time 5 ury counts 4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10,16 54 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25.765 88,912 7,131 34,292 157,544 147,775 13,18 83 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 1963—Dec. 20.. 252,579 155.261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 .59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 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 307. 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 1971—June 30.. 478,302 321,575 59,991 96,735 95,181 595,819 501,283 30,953 2,166 8,391 205,736 254,036 22,297 44,816 13,547 1 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 8,3751 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 307. 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 1971—June 30.. 281,830 192,339 33,759 55,732 57,244 352,807 294,025 16,575 1,441 5,118 121,096 149,795 15,629 25,999 4,598 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 1 10,822 43,879 40,505 3,978j 15 381 27,068 9,062 9 3,055 1,918 1 1963—Dec. 20.. 72,680 46,866 15,958 9,855 1 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 1 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 307. 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 1971—June 30.. 96,939 67,726 10,279 18,934 27,499 129,955 107,484 13,389 539 1,865 44,731 46,959 6,071 9,823 1,138 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. 23,14C 19,793 72 4,234 7,173 1964—Dec. 31.. 46,561 26,544 13,790 6,233 7,174 . 54,74-; 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 1 60,6791 54,806 6951 83 618; 27,528! 25,882 91 4,912 7,320 1966—Dec. 31.. 56,85: 33,636 13,873 9,34S 7,777 ' 65,921 59,434 709 87 5431 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,44S 37,675 15,146 11,62S 8,403 i 74,3281 67,107 786 89 5881 31,004t 34,640 162: 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155 14,02C 9,305 ; 84,605i 76,368 908I 94^ 691 34,61f i 40,060 217' 6,482: 7,504 1969—June 307. 78,032 48,358 14,341 15,333 8,696 1 88,802t 78,61C 791 781 749• 34,07() 42,921 451 7,004 ^ 7,528 Dec. 31.. 82,133 51,643 14,565 15,92! 10,056i 94,453i 83,38C i,on ' 85i 924^ 37,561[ 43,792: 629» 7,403I 7,595 1970—June 30.. 84,875 54,149 13,924 16,802 9,346 1 96,79^^ 84,865 894^ 131' 1,083; 35,83-r 46,9131 70S; 7,9751 7,675 Dec. 31.. 92,399 57,489 16,039 18,871 11,208I 106,457' 93,998 1,091 141 1,438! 40,00!> 51,3221 571 8,326 ; 7,735 1971—June 30.. 99,532 61,509 15,953 22,07( 10,43S> 113,05J; 99,774 98S> 18(5 1,40S) 39,90{i 57,2831 591^ 8,9931 7,811 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank 3 Other FRS membership Cash lia- Bor- Total Numand FDIC assets 3 bilities row- capital ber insurance Total Loans T U r u e . r a S y s . - Oth 2 er c c o a a u a p n n c i d t - t s a l 4 Total 3 m D a e n - d Time U. D S. e mand Tim 5 e ings co a u c n - ts ba o n f k s Govt. Other Noninsured nonmember: I941_Dec. 31 1,457 455 761 241 763 2,283 1,872 329 1,291 253 13 329 852 1945—Dec. 31 2,211 318 1,693 200 514 2,768 2,452 181 1,905 365 4 279 714 1947—Dec. 316 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 83 832 341 93 389 285 1964—Dec. 31 2,312 1,355 483 474 578 3,033 2,057 273 86 1,141 534 99 406 274 1965—Dec. 31 2,455 1,549 418 489 572 3,200 2,113 277 85 1,121 612 147 434 263 1967—Dec. 30 2,638 1,735 370 533 579 3,404 2,172 285 58 1,081 733 246 457 211 1968—Dec. 31 2,901 1,875 429 597 691 3,789 2,519 319 56 1,366 767 224 464 197 1969—June 30 7 2,809 1,800 321 688 898 3,942 2,556 298 81 1,430 731 290 502 209 Dcc. 31 2,982 2,041 310 632 895 4,198 2,570 316 41 1,559 638 336 528 197 1970—June 30 3,043 2,073 321 650 746 4,140 2,280 321 69 1,247 606 331 549 193 3,079 2,132 304 642 934 4,365 2,570 375 101 1,298 756 226 532 184 Dec. 31 2,968 2,057 263 648 960 4,356 2,480 360 1,182 877 250 495 182 1971—June 30 Total nonmember: 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1941_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 1945—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 1947—Dec. 31 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 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 7 80,841 50,159 14,662 16,021 9,594 92,743 81,166 1,090 160 765 35,500 43,652 741 7,506 7,737 Dec. 31 85,115 53,683 14,875 16,556 10,950 98,651 85,949 1,333 126 940 39,120 44,430 965 7,931 7,792 1970—June 30 87,919 56,222 14,245 17,452 10,092 100,934 87,145 1,215 207 1,119 37,084 47,520 ,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 1971—June 30 102,500 63,566 16,216 22,718 11,398 117,414 102,254 1,348 227 1,429 41,091 58,160 847 9,489 7,993 1 Beginning June 30, 1966, loans to farmers directly guaranteed by 9 Beginning Jan. 4, 1968, a country bank with deposits of $321 million CCC were reclassified as securities, and Export-Import Bank portfolio was reclassified as a reserve city bank. Beginning Feb. 29, 1968, a reserve fund participations were reclassified from loans to securities. This reduced city bank in Chicago with total deposits of $190 million was reclassified as Total loans and increased "Other securities" by about $1 billion. Total a country bank. loans include Federal funds sold, and beginning with June 1967 securities purchased under resale agreements, figures for which are included in NOTE.—Data are for all commercial banks in the United States (includ- "Federal funds sold, etc.," on p. A-24. ing Alaska and Hawaii, beginning with 1959). Commercial banks represent Beginning June 30, 1971, Farmers Home Administration notes are all commercial banks, both member and nonmember; stock savings classified as "Other securities" rather than "Loans." As a result of this banks; and nondeposit trust companies. change, approximately $700 million was transferred to "Other securities" For the period June 1941-June 1962 member banks include mutual for the period ending June 30, 1971, for all commercial banks. savings banks as follows: three before Jan. 1960; two through Dec. 1960, See also table (and notes) at the bottom of p. A-32. and one through June 1962. Those banks are not included in insured 2 See first two paragraphs of note 1. commercial banks. 3 Reciprocal balances excluded beginning with 1942, Beginning June 30, 1969, commercial banks and member banks exclude Includes items not shown separately. See also note 1. a small national bank in the Virgin Islands; also, member banks exclude, 5 See last paragraph of note 1, and noninsured commercial banks include, through June 30, 1970, a small 6 Beginning with Dec. 31, 1947, the series was revised; for description, member bank engaged exclusively in trust business. see note 4, p. 587, May 1964 BULLETIN. Comparability of figures for classes of banks is affected somewhat by 7 Figure takes into account the following changes beginning June 30, changes in F.R. membership, deposit insurance status, and the reserve 1969; (1) inclusion of consolidated reports (including figures for all bank- classifications of cities and individual banks, and by mergers, etc. premises subsidiaries and other significant majority-owned domestic Data for national banks for Dec. 31, 1965, have been adjusted to make subsidiaries) and (2) reporting of figures for total loans and for individual them comparable with State bank data. categories of securities on a gross basis—that is, before deduction of Figures are partly estimated except on call dates. valuation reserves—rather than net as previously reported. For revisions in series before June 30, 1947, see July 1947 BULLETIN, 8 Regarding reclassification as a reserve city, see Aug. 1962 BULLETIN, pp. 870-71. p. 993. For various changes between reserve city and country status in 1960-63, see note 6, p. 587, May 1964 BULLETIN. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 24 COMMERCIAL BANKS o OCTOBER 1971 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans i Investments b c C a a l n a ll k s d s a a n o te d f l i o T n a a v o n n e t d s s a t l 1 - f s F u e o e n r l a d d d l - s , Total C m c o i e a m r l - - A c g u r l- i- o p s r u e r c c c F a u h o r r a r i r t s y ie i i n n s g g in f s in ti a T tu n o t c i i o a n l s R e e s a - l Ot i t h n o e - r, Other U s .S e . c u T r r i e ti a e s s u 6 r y S l a o t n c a d a te l Other ments etc. 2 3, 4 and tur- To tate di- 5 govt, secuin- al 5 bro- vid- Bills secu- rities' d tr u ia s l - k a e n r d s ot T h o e rs Banks Others uals3 Total ce a r n t d if i- Notes Bonds rities deal- cates ers Total: 2 1947—Dec. 31.. 116,284 38,057 18,167 1,660 830 1,220 115 9,393 5,723 947 69,221 9,982 6,034 53,205 5,276 3,729 1969—Dec. 3110 422,728 9,928 286,750 108,443 10,329 5,739 4,027 2,488 15,062 70,020 63,256 7,388 54,709 59,183 12,158 1970—Dec. 31.. 461,998 16,241 297,897 112,486 11,155 6,332 3,536 2,660 15,855 72,492 65,807 7,574 61,742 69,637 16,481 1971—June 30. 481,270 15,663 307,969 114,362 12,226 5,634 3,493 2,844 16,958 75,777 69,149 7,527 60,254 77,994 19,389 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 I,314 3,164 3,606 49 4,677 2,361 1,132 88,912 21,526 16,045 51,342 3,873 3,258 1947_Dec. 31.. 14,274 37,583 18,012 1,610 823 ,190 114 9,266 5,654 914 67,941 9,676 5,918 52,347 5,129 3,621 1969—Dec. 31 lo 419,746 9,693 284,945 107,685 10,314 5,644 3,991 2,425 14,890 69,669 63,008 7,319 54,399 58,840 11,869 1970—Dec. 31.. 458,919 15,942 296,064 111,540 II,141 6,207 3,516 2,581 15,713 72,302 65,556 7,507 61,438 69,301 16,174 1971—June 30 478,302 15,381 306,194 113,411 12,211 5,555 3,480 2,718 16,825 75,615 68,942 7,437 59,991 77,687 19,048 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 3,090 2,871 1945—Dec. 31. 107,183 22,775 8,949 855 3,133 3,378 47 3,455 1,900 1,057 78,338 19,260 14,271 44,807 3,254 2,815 1947_Dec. 31. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 839 57,914 7,803 4,815 45,295 4,199 3,105 1969—Dec. 3110 337,613 7,356 235,639 96,095 6,187 5,408 3,286 2,258 14,035 53,207 48,388 6.776 39,833 47,227 7,558 1970—Dec. 31. 366,520 12,677 241,840 97,954 6,538 5,963 3,028 2,345 14,688 54,600 49,829 6,895 45,399 55,662 10,942 1971—June 30 378,769 12,026 248,040 98,573 7,094 5,333 3,024 2,496 15,770 56,934 52,037 6.777 44,038 61,963 12,702 New York City: 1941—Dec. 31. 12,896 4,072 2,807 412 169 32 123 522 7,265 311 1,623 5,331 729 830 1945—Dec. 31. 26,143 7,334 3,044 2,453 ,172 26 80 287 272 17,574 3,910 3,325 10,339 606 629 1947—Dec. 31. 20,393 7,179 5,361 545 267 93 111 564 238 11,972 1,642 558 9,772 638 604 1969—Dec. 311 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—Dec. 31. 62,347 774 46,386 27,189 4,174 686 1,169 3,741 3,883 3,907 1,622 6,009 7,757 1,420 1971—June 30 61,059 996 46,247 26,948 3,822 637 1,106 4,210 4,202 3,916 1,385 5,116 7,298 ,401 City of Chicago: 1941—Dec. 31. 2,760 954 732 48 52 22 95 1,430 256 153 1,022 182 193 1945—Dec. 31. 5,931 1,333 760 211 233 36 51 40 4,213 1,600 749 1,864 181 204 1947—Dec. 31. 5,088 1,801 1,418 73 87 46 149 26 2,890 367 248 2,274 213 185 1969—Dec. 3110 14,365 215 10,556 6,444 337 262 186 1,219 842 862 354 1,564 1,837 192 1970—Dec. 31.. 15,745 475 10,739 6,502 356 191 138 1,284 864 1,015 346 2,105 2,055 372 1971—June 30. 16,477 612 11,164 6,515 373 245 218 1,465 861 1,078 367 1,736 2,580 384 Other reserve city: 1941—Dec. 31.. 15,347 7,105 3,456 300 114 194 4 1,527 ,508 6,467 295 751 5,421 956 820 1945—Dec. 31.. 40,108 8,514 3,661 205 427 1,503 17 1,459 855 387 29,552 8,016 5,653 15,883 1,126 916 1947—Dec. 31.. 36,040 13,449 7,088 225 170 484 15 3,147 1,969 351 20,196 2,731 1,901 15,563 1,342 1,053 1969—Dec. 31 lo 121,628 3,021 88,180 37,701 1,386 878 1,300 876 6,006 19,706 17,569 2,757 11,944 16,625 1,859 1970—Dec. 31.. 133,861 6,007 90,293 38,627 1,428 909 1,322 798 7,015 19,848 17,322 3,024 14,700 19,771 3,089 1971—June 30. 137,451 5,010 92,176 38,189 1,601 786 1,419 893 7,517 20,722 17,929 3,120 14,552 22,409 3,304 Country: 1941—Dec. 31.. 12,518 5,890 1,676 659 20 183 1,823 1,528 4,377 110 481 3,787 1,222 1,028 1945—Dec. 31.. 35,002 5,596 1,484 648 42 471 1,881 707 359 26,999 5,732 4,544 16,722 1,342 1,067 1947—Dec. 31.. 36,324 10,199 3,096 818 23 227 3,827 1,979 224 22,857 3,063 2,108 17,687 2,006 1,262 1969—Dec. 31 lo 141,286 3,318 89,401 23,762 4,739 498 947 148 2,263 28,824 26,362 1,858 21,278 22,572 4,718 1970—Dec. 31.. 154,568 5,420 94,421 25,637 5,052 524 828 239 2,648 30,005 27,585 1,903 22,586 26,079 6,062 1971—June 30. 163,782 5,407 98,452 26,922 5,433 352 723 279 2,577 31,148 29,113 1,905 22,634 29,675 7,614 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 109 11,318 2,179 1,219 7,920 1,073 625 1969—Dec. 3110 85,115 2,57; 51,111 12,348 4,141 329 741 231 1,028 16,813 14,868 612 14,875 11,956 4,600 1970—Dec. 31.. 95,478 3,564 56,058 14,532 4,617 369 507 316 1,168 17,891 15,978 679 16,342 13,975 5,538 1971—June 30. 102,500 3,638 59,929 15,789 5,131 301 468 348 1,187 18,843 17,112 749 16,216 16,031 6,687 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." <> 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
OCTOBER 1971 • COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CUSS OF BANK (In millions of dollars) Demand deposits Time deposits b c C a a l n a ll k s d s a a o n te f d B s R w e R a r i n R e v t k h - e . s s r C c e a o n u n i c d r n - y b m a a w B d n e n i a c o s k t e l - h t - s i s c 7 ju p m D s o a d a t d s e e e n i - - - d t d s 8 m D e I s o n i - t i e c7 rb a e F n ig o k n r- 9 G U o .S v . t . S l g S l g aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. c C c h o a f e e i e f n e r r f c s d d i t - k i * - s, IPC I b n a t n e k r- GG PP SS UU aa oo oo aa nn .. ss SS vv vv dd tt -- .. tt aa ,, ll gg SS ll aa oo oo tt nn cc aa vv dd aa tt tt ee ll .. IPC 3 r B i o n o w g r s - - c C o a t a u a c p n l - i t - s etc. iinnggss 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 lo. 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 18,360 39,978 1970—Dec. 31... 23,319 7,046 23,136 173,912 27,442 3,166 7,938 17,763 8,540 183,032 1,975 463 23,225 208,201 19,375 42,958 1971—June 30.. 24,066 7,634 21,546 168,263 28,699 2,614 8,412 17,276 11,949 177,692 2,207 517 26,221 228,176 22,547 45,311 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 1,248 23,740 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 lo. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,860 18,024 39,450 1970—Dec. 31... 23,319 7,028 22,332 172,351 27,235 2,998 7,898 17,636 8,352 182,048 1,874 462 23,150 207,519 19,149 42,427 1971—June 30.. 24,066 7,610 20,748 168,860 28,519 2,434 8,392 17,185 11,736 176,815 2,166 517 26,132 227,387 22,297 44,816 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 1,243 22,179 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. 3110. 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 17,395 32,047 1970—Dec. 31... 23,319 5,445 13,744 133,169 26,260 2,882 6,460 13,250 7,309 147,473 1,733 406 18,406 160,998 18,578 34,100 1971—June 30.. 24,066 5,870 12,971 127,670 27,605 2,360 6,983 12,953 10,654 142,220 1,980 462 20,534 175,757 21,700 35,822 New York City: 1941—Dec. 31... 5,105 93 141 1100,,776611 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31... 4,015 111 78 1155,,006655 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31... 4,639 151 70 1166,,665533 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 31 lo. 4,358 463 455 21,316 8,708 1,641 694 1,168 6,605 28,354 268 45 207 14,692 4,405 6,301 1970—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 18,913 4,500 6,486 1971—June 30.. 4,716 466 1 193 15,264 13,504 1,717 1,199 789 6,032 25,994 937 68 1,896 21,572 4,531 6,860 City of Chicago: 1941—Dec. 31... 1,021 43 298 22,,221155 1,027 8 127 233 34 2,152 476 288 1945—Dec. 31... 942 36 200 33,,115533 1,292 20 1,552 237 66 3,160 719 377 1947—Dec. 31... 1,070 30 175 333,,,777333777 1,196 21 72 285 63 333,,,888555333 2 9 902 426 1969—Dec. 3110. 869 123 150 555,,,222222111 1,581 96 175 268 229 666,,,222777333 15 216 44,,440099 11,,229900 1,517 1970—Dec. 31... 1,148 126 160 555,,,111222000 1,853 77 282 240 210 666,,,222111333 49 568 55,,554499 11,,885511 1,586 1971—June 30.. 991 126 247 555,,,000444444 1,439 51 318 352 211 666,,,000888444 85 3 741 66,,335533 22,,335599 1,636 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. 3110. 9,044 1,787 3,456 44,169 10,072 590 1,575 3,934 1,928 53,062 242 86 4,609 50,439 9,881 11,464 1970^Dec. 31... 9,710 1,748 3,731 44,093 10,805 512 2,547 3,793 2,035 53,499 592 222 8,489 58,165 10,391 12,221 1971—June 30.. 10,394 1,822 4,069 43,872 9,631 535 2,954 3,716 2,455 51,451 735 249 8,863 62,312 12,153 12,826 Country: 1941—Dec. 31... 2,210 526 3,216 9,661 790 2 225 1,370 239 8,500 30 31 146 6,082 4 1,982 1945—Dec. 31... 4,527 796 4,665 23,595 1,199 8 5,465 2,004 435 21,797 17 52 219 12,224 11 2,525 1947—Dec. 31... 4,993 929 3,900 27,424 1,049 7 432 2,647 528 25,203 17 45 337 14,177 23 2,934 1969—Dec. 3110. 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—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 1971—June 30.. 7,964 3,455 7,461 63,490 3,031 56 2,513 8,095 1,956 58,691 223 143 9,033 85,521 2,656 14,499 Nonn 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 lo. 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—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 1971—June 30.. 1,765 8,576 40,593 1,094 254 1,429 4 323 1,295 35,472 227 55 5,688 52,419 847 9,489 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 'For reclassification of certain deposits in 1961, see note 6, p. 589, total banks. May 1964 BULLETIN. A small noninsured member bank engaged exclusively in trust business 10 Beginning June 30,1969, reflects (1) inclusion of consolidated reports is treated as a noninsured bank and not as a member bank for the period (including figures for all bank-premises subsidiaries and other significant June 30, 1969—June 30, 1970. majority-owned domestic subsidiaries) and (2) reporting of figures for Comparability of figures for classes of banks is affected somewhat by total loans and for individual categories of securities on a gross basis—that changes in F.R. membership, deposit insurance status, and the reserve is, before deduction of valuation reserves. See also notes 1 and 6. classifications of cities and individual banks, and by mergers, etc. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 26 WEEKLY REPORTING BANKS • OCTOBER 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS (In millions of dollars) Loans Federal funds sold, etc. i Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans finan. Wednesday and Com- To brokers To institutions invest- To mer- and dealers others ments com- To cial Agri- Total mer- U.S. others Total and culcial Treas- Other indus- tural Pers. banks ury se- trial U.S. U.S. and se- curi- Treas- Other Treas- Other sales curi- ties ury sees. ury sees. finan. Other ties sees. sees. COS., etc. Large banks— Total 1970 Sept. 2 243,357 7,644 6,266 1,036 227 115 172,26- 79,504 2,028 746 3,086 103 2,299 7-, 148 5,889 9 243,880 7,622 6,175 1,106 175 166 172,695 79,716 2,026 927 2,756 105 2,309 7,193 5,851 16 247,051 8,192 6,089 1,777 207 119 174,203 80,822 2,013 835 3,061 105 2,322 7,280 5,855 23 243,899 6,322 5,300 662 239 121 173,426 80,794 2,026 721 2,833 102 2,316 6,897 5,894 30 245,838 6,546 4,937 1,160 255 194 174,441 81,154 2,010 554 3,104 104 2,329 7,272 5,957 1971 Aug. 4 265,456 8,829 8,267 409 13 140 181,72C 81,807 2,154 482 4,074 148 2,414 7,099 6,959 11 264,831 8,594 8,123 386 17 68 181,677 81,634 2,150 613 3,791 149 2,405 7,192 7,027 18 266,409 8,825 8,083 504 66 172 183,621 82,522 2,138 724 3,907 118 2,411 6,793 7,123 25 266,428 8,600 7,699 679 64 158 183,877 82,588 2,135 780 3,951 119 2,434 6,619 7,012 Sept. 268,905 9,419 8,435 708 120 156 185,236 82,951 2,130 665 4,493 136 2,421 6,845 7,121 268,925 9,664 8,629 861 38 136 184,761 82,925 2,111 661 4,207 124 2,414 6,592 7,094 15P 274,553 11,585 9,542 1,798 64 181 187,156 83,854 2,115 1,096 4,567 174 2.428 6,824 7,215 25P 270,699 9,461 8,225 1,036 63 137 186,049 83,874 2,107 822 4,296 144 2.429 6,279 7,195 29P 271,389 9,952 8,962 800 61 129 186,246 83,741 2,106 709 4,472 129 2,434 6,305 7,243 New York City 1970 Sept. 2 55,554 1,427 1,358 42,101 25,712 504 2,017 680 2,209 1,503 9 55,296 928 864 42,372 25,933 667 1,720 679 2,267 1,493 16 56,521 1,019 930 43,099 26,522 61 1,913 676 2,206 1,457 23 55,421 975 960 42,453 26,434 534 1,744 674 2,008 1,500 30 55,779 565 514 20 43,131 26,715 454 1,993 669 2,243 1,532 1971 Aug. 4 57,062 1,367 1,218 115 43,300 25,608 380 2,841 579 2,238 1,590 56,624 1,162 1,128 31 43,221 25,617 508 2,485 575 2,317 1,624 is'.'.'.'.'.'.'.'. 57,335 1,194 1,153 35 44,050 25,965 581 2,526 578 2,113 1,646 25 57,203 884 853 12 44,068 26,087 625 2,645 583 2,030 1,561 Sept. If 58,317 1,217 1,208 4 44,799 26,304 555 3,071 579 2,204 1,583 SP 58,031 1,261 1,236 5 44,551 26,335 558 2,856 581 2,015 1,607 15P 59,908 1,297 1,252 26 45,750 26,685 927 3,078 595 2,169 1,620 22P 58,503 1,212 1,146 40 44,879 26,612 656 2,911 592 1,878 1,606 29P 58,333 1,172 1,127 33 44,855 26,433 560 3,037 594 1,924 1,643 Outside New York City 1970 Sept. 2 187,803 6,217 4,908 1,011 217 81 130,163 53,792 2,014 242 1,069 1,619 4,939 4,386 9 188,584 6,694 5,311 1,082 175 126 130,323 53,783 2,012 260 1,036 1,630 4,926 4,358 16 190,530 7,173 5,159 1,757 197 60 131,104 54,300 2,000 224 1,148 1,646 5,074 4,398 23 188,478 5,347 4,340 662 239 106 130,973 54,360 2,011 187 1,089 1,642 4,889 4,394 30 190,059 5,981 4,423 1,140 255 163 131,310 54,439 1,996 100 1,111 1,660 5,029 4,425 1971 Aug. 4 208,394 7,462 7,049 294 13 106 138,420 56,199 2,139 102 1,233 127 1,835 4,861 5,369 11 208,207 7,432 6,995 355 17 65 138,456 56,017 2,134 105 1,306 129 1,830 4,875 5,403 18 209,074 7,631 6,930 469 66 166 139,571 56,557 2,121 143 1,381 98 1,833 4,680 5,477 25 209,225 7,716 6,846 667 64 139 139,809 56,501 2,118 155 1,306 97 1,851 4,589 5,451 Sept. 210,588 8,202 7,227 704 120 151 140,437 56,647 2,113 110 1,422 114 1,842 4,641 5,538 SP 210,894 8,403 7,393 856 38 116 140,210 56,590 2,092 103 1,351 102 1,833 4,577 5,487 15P 214,645 10,288 8,290 1,772 64 162 141,406 57,169 2,094 169 1,489 151 1,833 4,655 5,595 222^ 212,196 8,249 7,079 996 50 124 141,170 57,262 2,087 166 1,385 121 1,837 4,401 5,589 29^ 213,056 8,780 7,835 767 61 117 141,391 57,308 2,092 149 1,435 103 1,840 4,381 5,600 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 bain ks maturing— Wednesday Con- Real sumer For- All Certifestate instal- eign other Total Bills icates Do- For- ment govts. 2 Within 1 to After mes- eign I yr. 5 yrs. 5 yrs. tic Large banks— Total 1970 33,743 402 1,374 21,117 908 13,917 24,764 3,750 3,605 14,806 2,603 Sept. 2 33,771 362 1,482 21,128 958 14,111 24,710 3,791 3,561 14,761 2,597 9 33,876 417 1,415 21,130 966 14,106 24,625 3,844 3,545 14,726 2,510 16 33,918 409 1,512 21,195 935 13,874 24,402 3,689 3,564 14,691 2,458 23 33,939 424 1,428 21,250 926 13,990 24,793 4,195 3,570 14,648 2,380 30 1971 36,210 569 1,849 22,843 802 14,310 25,183 3,425 3,556 14,929 3,273 Aug. 4 36,367 587 1,964 22,876 810 14,112 25,031 3,294 3,593 14,882 3,262 11 36,512 792 2,664 22,925 821 14,171 25,007 2,896 3,350 15,835 2,926 18 36,645 814 2,795 23,002 824 14,159 24,960 2,857 3,367 15,859 2,877 25 36,727 877 2,508 23,095 812 14,455 24,934 2,812 3,387 16,014 2,721 Sept. 1V 36,815 900 2,603 23,103 808 14,404 25,085 2,586 3,422 16,024 3,053 SP 36,993 877 2,629 23,155 832 14,397 25,278 2,810 3,694 15,698 3,076 15F 37,107 857 2,657 23,186 838 14,258 25,217 2,762 3,766 15,619 3,070 22P 37,183 888 2,595 23,290 799 14,352 25,094 2,685 3,837 15,464 3,108 29P New York City 1970 3,475 188 754 1,849 551 2,631 5,138 1,173 512 2,981 472 Sept. 2 3,511 150 830 1,842 597 2,654 5,153 1,211 519 2,961 462 ...9 3,528 204 793 1,844 604 2,715 4,984 1,186 505 2,984 399 16 3,521 186 861 1,846 571 2,546 4,858 1,135 489 2,835 399 23 3,491 199 789 1,836 568 2,614 4,832 1,134 475 2,832 391 30 1971 3,813 195 911 1,874 554 2,681 4,378 741 522 2,774 341 Aug. 4 3,824 211 977 1,877 558 2,612 4,310 663 502 2,800 345 3,853 278 1,383 1,894 561 2,635 4,424 525 446 3,203 250 !!!!!!!!!!!!!!!!! !!I8 3,857 303 1,328 1,891 558 2,561 4,597 645 404 3,294 254 25 3,876 377 1,090 1,896 540 2,685 4,540 596 405 3,294 245 Sept. If 3,878 390 1,149 1,899 534 2,708 4,555 517 440 3,263 335 8^' 3,910 390 1,184 1,910 537 2,701 4,694 650 483 3,217 344 15F 3,929 380 1,206 1,909 534 2,623 4,538 559 473 3,162 344 22P 3,950 412 1,167 1,906 534 2,655 4,486 547 500 3,094 345 29^ Outside New York City 1970 30,268 214 620 19,268 357 11,286 19,626 2,577 3,093 11,825 2,131 .Sept. 2 30,260 212 652 19,286 361 11,457 19,557 2,580 3,042 11,800 2,135 9 30,348 213 622 19,286 362 11,391 19,641 2,658 3,040 11,832 2,111 16 30,397 223 651 19,349 364 11,328 19,544 2,554 3,075 11,856 2,059 23 30,448 225 639 19,414 358 11,376 19,961 3,061 3,095 11,816 1,989 30 1971 32,397 374 938 20,969 248 11,629 20,805 2,684 3,034 12,155 2,932 . Aug. 4 32,543 376 987 20,999 252 11,500 20,721 2,631 3,091 12,082 2,917 11 32,659 514 1,281 21,031 260 11,536 20.583 2,371 2,904 12,632 2,676 18 32,788 511 1,467 21,111 266 11,598 20,363 2,212 2,963 12,565 2,623 25 32,851 500 1,418 21,199 272 11,770 20,394 2,216 2,982 12,720 2,476 .Sept. 32,937 510 1,454 21,204 274 11,696 20,530 2,069 2,982 12,761 2,718 33,083 487 1,445 21,245 295 11,696 20.584 2,160 3,211 12,481 2,732 A5P 33,178 477 1,451 21,277 304 11,635 20,679 2,203 3,293 12,457 2,726 .22P 33,233 476 1,428 21,384 265 11,697 20,60r 2,138 3,337 12,370 2,763| .29P For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 28 WEEKLY REPORTING BANKS • OCTOBER 1971 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Investments (cont.) Other securities Cash IInnvveesstt-- Obligations Other bonds, items Re- BBaall-- mmeennttss Total of State corp. stock, in serves Cur- aanncceess iinn ssuubb-- assets/ Wednesday and and process with rency wwiitthh ssiiddiiaarr-- Other total political securities of F.R. and ddoo-- iieess nnoott assets liabil- Total subdivisions collec- Banks coin mmeessttiicc ccoonnssooll-- ities tion bbaannkkss iiddaatteedd Tax Certif. war- All of All rants 3 other partici- others pation 4 Large banks— Total 1970 Sept. 2 38,685 5,086 29,164 1,024 3,411 29,844 17,719 3,243 4,757 705 14,334 313,959 9 38,853 5,167 29,230 1,045 3,411 29,949 17,252 3,282 5,464 710 14,249 314,786 16 40,031 5,769 29,839 1,049 3,374 33,174 16,768 3,354 5,872 709 14,191 321,119 23 39,749 5,580 29,705 1,039 3,425 28,198 18,129 3,428 4,919 710 14,078 313,361 30 40,058 5,681 29,815 1,042 3,520 32,851 17,895 3,306 5,896 704 14,345 320,835 1971 Aug. 4 49,724 7,801 34,976 1,375 5,572 31,875 20,057 3,220 6,160 786 15,667 343,221 11 49,529 7,675 35,098 1,353 5,403 31,516 17,972 3,486 5,562 784 15,666 339,817 18 48,956 7,466 34,860 1,292 5,338 30,303 18,588 3,494 5,813 786 15,427 340,820 25 48,991 7,424 34,964 1,271 5,332 29,811 19,311 3,615 5,808 786 15,635 341,394 Sept. 49,316 7,650 35,028 1,297 5,341 33,541 19,386 3,482 6,462 791 15,959 348,526 49,415 7,949 34,867 1,286 5,313 31,971 19,085 3,525 6,667 791 15,811 346,775 15P 50,534 8,380 35,302 1,351 5,501 36,268 17,805 3,608 6,909 794 15,717 355,654 222^ 49,972 8,065 35,150 1,323 5,434 33,213 18,468 3,641 5,992 796 15,630 348,439 29P 50,097 8,090 35,239 1,327 5,441 32,235 18,637 3,702 6,206 799 15,780 348,748 New York City 1970 Sept. 2 6,888 1,317 4,597 86 888 13,878 4,244 431 459 325 5,095 79,986 9 6,843 1,325 4,543 86 889 13,861 4,954 443 637 330 5,015 80,536 16 7,419 1,719 4,752 75 873 14,742 4,585 439 667 332 5,055 82,341 23 7,135 1,586 4,674 60 815 12,908 4,673 418 509 332 4,966 79,227 30 7,251 1,630 4,705 64 852 16,036 4,901 405 1,158 332 5,038 83,649 1971 Aug. 4 8,017 1,433 5,217 226 1,141 14,018 5,534 431 886 348 5,419 83,698 7,931 1,373 5,284 211 1,063 14,937 4,506 436 839 349 5,479 83,170 IS.'.'/.'.'.'.'.'.'.'.'/.'.'. 7,667 1,346 5,122 217 982 12,981 4,458 430 1,060 349 5,434 82,047 25 7,654 1,351 5,115 207 981 14,135 5,241 426 969 349 5,478 83,801 Sept. 12' 7,761 1,406 5,098 227 1,030 15,942 4,799 422 1,098 350 5,500 86,428 8P 7,664 1,420 5,021 221 1,002 13,897 4,934 429 1,199 350 5,387 84,227 152' 8,167 1,792 5,133 219 1,023 16,530 4,841 437 1,490 350 5,358 88,914 22^ 7,874 1,438 5,206 217 1,013 15,874 4,044 422 1,010 352 5,352 85,557 29^ 7,820 1,401 5,178 216 1,025 15,788 5,449 440 891 352 5,301 86,554 Outside New York City 1970 Sept. 2 31,797 3,769 24,567 938 2,523 15,966 13,475 2,812 4,298 380 9,239 233,973 9 32,010 3,842 24,687 959 2,522 16,088 12,298 2,839 4,827 380 9,234 234,250 16 32,612 4.050 25,087 974 2,501 18,432 12,183 2,915 5,205 377 9,136 238,778 23 32,614 3,994 25,031 979 2,610 15,290 13,456 3,010 4,410 378 9,112 234,134 30 32,807 4.051 25,110 978 2,668 16,815 12,994 2,901 4,738 372 9,307 237,186 1971 Aug. 4 41,707 6,368 29,759 1,149 4,431 17,857 14,523 2,789 5,274 438 10,248 259,523 11 41,598 6,302 29,814 1,142 4,340 16,579 13,466 3,050 4,723 435 10,187 256,647 18 41,289 6,120 29,738 1,075 4,356 17,322 14,130 3,064 4,753 437 9,993 258,773 25 41,337 6,073 29,849 1,064 4,351 15,676 14,070 3,189 4,839 437 10,157 257,593 Sept. 12' 41,555 6,244 29,930 1,070 4,311 17,599 14,587 3,060 5,364 441 10,459 262,098 82^ 41,751 6,529 29,846 1,065 4,311 18,074 14,151 3,096 5,468 441 10,424 262,548 15^ 42,367 6,588 30,169 1,132 4,478 19,738 12,964 3,171 5,419 444 10,359 266,740 222' 42,098 6,627 29,944 1,106 4,421 17,339 14,424 3,219 4,982 444 10,278 262,882 292' 42,277 6,689 30,061 1,111 4,416 16,447 13,188 3,262 5,315 447 10,479 262,194 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 Dopolit- 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 cial ings etc.2 cial checks ings sions banks Large Banks— Total 1970 131,607 93,029 6,194 3,815 18,236 567 787 1,948 7,031 110,633 42,965 41,537 11,455 1,190 5,067 Sept. 2 131,505 93,492 5,758 2,931 18,739 621 745 2,347 6,872 111,158 43,081 42,031 11,453 1,239 5,022 9 138,347 97,217 6,357 4,69C 19,493 553 823 2,205 7,009 111,671 42,985 42,442 11,542 1,265 4,881 16 130,726 91,797 6,056 5,916 17,411 504 770 2,173 6,099 112,870 43,193 43,607 11,660 1,342 4,791 23 140,021 94,521 7,682 5,798 20,961 657 851 2,191 7,360 113,635 43,650 44,378 11,612 1,269 4,678 30 1971 139,404 97,181 6,620 2,890 21,490 703 758 2,358 7,404 132,931 52,645 56,998 15,065 1,554 4,646 Aug. 4 138,109 96,110 6,611 2,333 21,128 617 1,281 2,298 7,731 133,179 52,877 57,486 15,110 1,525 4,970 139,164 96,208 6,212 6,001 20,168 620 946 2,461 6,548 133,494 52,749 57,771 15,060 1,586 4,845 '.V.'.V.V.'.V.Vas 139,672 95,690 6,062 6,272 20,565 608 800 2,416 7,259 133,827 52,657 57,863 15,256 1,680 4,858 25 145,012 99,579 6,601 4,838 21,937 604 831 2,543 8,079 134,070 52,693 58,154 15,282 1,710 4,892 Sept. If 141,702 97,861 6.377 4,242 22,289 661 805 2,399 7,068 134,361 52,770 58,301 15,256 1,735 4,955 8P 149,396 103,312 6,518 4,928 22,540 606 881 2,449 8,162 133,811 52,575 57,667 15,183 1,815 4,765 15P 142,345 97,637 6,262 5,145 21,851 559 746 2,374 7,771 134,798 52,521 58,082 15,325 1,893 4,737 22P 141,222 96,346 6.378 5,636 21,235 641 762 2,421 7,803 136,148 52,607 59,051 15,395 1,989 4,543 29^^ New York City 1970 38,569 22,827 611 710 7,478 302 64' 1,333 4,661 16,657 1,842 4,503 784 638 1,267 Sept. 2 38,506 22,434 529 588 7,626 351 589 1,704 4,685 16,833 1,947 4,734 813 678 1,340 9 40,850 23,751 798 1,078 7,970 287 675 1,569 4,722 16,958 1,855 4,800 876 679 1,137 16 38,024 22,303 592 1,391 7,331 252 630 1,536 3,989 17,392 2,000 5,365 895 704 1,197 23 43,092 22,501 1,512 1,309 10,135 383 709 1,548 4,995 17,661 2,115 5,855 847 632 1,204 30 1971 39,282 21,711 509 545 9,610 378 586 1,648 4,295 23,013 4,831 12,080 1.515 751 2,569 Aug. 4 39,928 20,764 795 428 9,973 319 1,116 1,598 4,935 22,980 4,957 12,120 1,548 746 2,795 4 3 0 8 , , 4 49 5 5 6 2 2 1 0 , , 6 8 2 9 6 6 4 7 6 6 8 9 1 1 , , 5 5 4 0 5 6 9 8 , , 8 7 8 4 8 7 3 31 0 8 7 63 7 5 7 1 l, ,6 6 9 r 5 4 3, , 7 4 5 r 8 2 2 3 3 , , 3 37 4 9 6 4 4 , , 9 8 4 7 5 8 1 12 2 , , 3 3 6 6 3 8 1 1 , , 5 5 4 6 2 6 8 8 2 8 0 6 2 2 , , 7 8 3 0 5 8 '.'.'.'.'.'.'.'.'.'.'.'.'AS 2 5 42,707 23,423 534 1,050 10,296 320 685 1,762 4,637 23,183 4,935 12,386 1,488 845 2,773 Sept. If 39,728 21,418 840 805 10,125 353 637 1,603 3,947 23,091 4,885 12,253 1,456 822 2,758 8P 44,072 23,735 907 1,127 10,611 301 731 1,634 5,026 22,584 4,737 11,583 1,487 850 2,591 15F 41,577 21,877 590 1,156 10,681 288 597 1,608 4,780 22,941 4,725 11,770 1.516 899 2,636 22P 41,429 21,549 730 1,243 10,385 353 637 1,629 4,903 23,613 4,598 12,285 1,538 958 2,459 29P Outside New York City 1970 93,038 70,202 5,583 3,105 10,758 265 140 615 2,370 93,976 41,123 37,034 10,671 552 3,800 Sept. 2 92,999 71,058 5,229 2,343 11,113 270 156 643 2,187 94,325 41,134 37,297 10,640 561 3,682 9 97,497 73,466 5,559 3,612 11,523 266 148 636 2,287 94,713 41,130 37,642 10,666 586 3,744 16 92,702 69,494 5,464 4,525 10,080 252 140 637 2,110 95,478 41,193 38,242 10,765 638 3,594 23 96,929 72,020 6,170 4,489 10,826 274 142 643 2,365 95,974 41,535 38,523 10,765 637 3,474 30 1971 100,122 75,470 6,111 2,345 11,880 325 172 710 3,109 109,918 47,814 44,918 13,550 803 2,077 .. . Aug. 4 98,181 75,346 5,816 1,905 11,155 298 165 700 2,796 110,199 47,920 45,366 13,562 779 2,175 100,669 75,312 5,443 4,456 11,421 312 169 766 2,790 110,115 47,871 45,403 13,518 766 2,110 .18 99,216 74,064 5,594 4,766 10,677 297 165 805 2,848 110,481 47,712 45,500 13,690 794 2,050 .25 102,305 76,156 6,067 3,788 11,641 284 146 781 3,442 110,887 47,758 45,768 13,794 865 2,119 .Sept. IP 101,974 76,443 5,537 3,437 12,164 308 168 796 3,121 111,270 47,885 46,048 13,800 913 2,197 Bp 105,324 79,577 5,611 3,801 11,929 305 150 815 3,136 111,227 47,838 46,084 13,696 965 2,174 15P 100,768 75,760 5,672 3,989 11,170 271 149 766 2,991 111,857 47,796 46,312 13,809 994 2,101 22P 99,793 74,797 5,648 4,393 10,850 288 125 792 2,900 112,535 48,009 46,766 13,857 1,031 2,084 29^ For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 30 WEEKLY REPORTING BANKS • OCTOBER 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 11 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 1 Total to to foreign justed 9 IPC's others branches Large banks— Total 1970 Sept. 2 17,071 767 1,767 23,822 4,021 24,197 173,240 236,689 79,712 20,723 11,814 8,909 10,332 9 17,603 447 1,734 24,042 4,018 24,205 173,780 237,343 79,886 21,052 12,102 8,950 10,220 16 17,013 180 1,623 24,098 4,029 24,083 175,889 240,545 80,990 21,106 12,232 8,874 10,525 23 15,046 1,323 1,546 23,697 3,998 24,079 174,039 238,190 79,201 22,036 13,148 8,888 10,126 30 13,903 785 1,435 22,714 4,007 24,258 175,626 240,477 80,411 22,227 13,622 8,605 9,787 1971 Aug. 4 23,195 552 1,134 15,755 4,012 80 26,158 181,713 256,620 83,149 30,501 18,623 11,878 1,912 11 21,657 454 1,120 15,017 4,012 117 26,152 181,561 256,121 83,132 30,828 18,839 11,989 1,104 18 20,827 1,017 1,038 15,063 4,011 81 26,125 183,571 257,534 82,692 31,376 19,291 12,085 1,374 25 19,499 1,692 1,183 15,289 4,008 77 26,147 183,964 257,915 83,024 31,598 19,337 12,261 1,409 Sept. IP 22,042 829 1,153 15,039 4.001 76 26,304 185,343 259,593 84,696 31,644 19,423 12,221 1,237 SP 23,520 273 1,084 15,488 4.003 77 26,267 184,896 259,396 83,200 31,903 19,695 12,208 1,243 15F 24,744 286 1,126 15,979 4.002 75 26,235 188,322 264,134 85,660 31,385 19,200 12,185 1,705 22P 22,774 820 1,093 16,355 3,990 89 26,175 186,428 261,617 82,136 32,149 19,707 12,442 2,144 29V 22,968 209 1,112 16,786 4.004 89 26,210 186,348 261,539 82,116 33,054 20,663 12,391 2,468 New York City 1970 Sept. 2 4,377 235 244 12,530 1,206 6,168 41.982 54,008 16,503 5,326 2,942 2,384 7,545 9 5,262 120 226 12,220 1,204 6,165 42,286 54,282 16,431 5,425 3,006 2,419 7,246 16 4,525 225 12,471 1,208 6,104 42,984 55,387 17,060 5,451 3,036 2,415 7,533 23 3,779 549 185 12,028 1,185 6,085 42,282 54,275 16,394 5,875 3,470 2,405 7,150 30 3,364 259 187 11,754 1,191 6,141 42.983 55,066 15,612 5,938 3,665 2,273 6,921 1971 Aug. 4 6,532 20 202 6,684 1,191 6,774 43,254 55,649 15,109 10,873 7,185 3,688 1,209 5,913 207 6,165 1,191 6,786 43,044 55,285 14,590 10,880 7,112 3,768 759 is'.'.'.'.'.'.'.'.'.'.'.'. 5,520 100 209 6,373 1.193 6,778 43,813 55,904 15,222 11,437 7,562 3,875 977 25 4,584 1,025 311 6,118 1,196 6,765 43,796 56,047 14,927 11,456 7,532 3,924 720 Sept. Ip 5,830 280 260 6,158 1.195 6,815 44,431 56,732 15,419 11,258 7,436 3,822 698 6,872 209 6,335 1.196 6,796 44,186 56,405 14,901 11,238 7,435 3,803 859 15P 7,327 2 208 6,745 1.194 6,782 45,405 58,266 15,804 10,790 6,996 3,794 1,279 22P 5,698 400 257 6,729 1,196 6,759 44,565 56,977 13,866 11,078 7,188 3,890 1,339 29^ 6,228 289 7,052 1,194 6,749 44,488 56,794 14,013 11,639 7,743 3,896 1,720 Outside New York City 1970 Sept. 2 12,694 532 1,523 11,292 2.815 18,029 131,258 182,681 63,209 15,397 8,872 6,525 2,787 9 12,341 327 1,508 11,822 2,814 18,040 131,494 183,061 63,455 15,627 9,096 6,531 2,974 16 12,488 180 1,398 11,627 2,821 17,979 132,905 185,158 63,930 15,655 9,196 6,459 2,992 23 11,267 774 1,361 11,669 2,813 17,994 131,757 183,915 62,807 16,161 9,678 6,483 2,976 30 10,539 526 1,248 10,960 2.816 18,117 132,643 185,4r 64,799 16,289 9,957 6,332 2,866 1971 16,663 532 932 9,071 2,821 80 19,384 138,459 200,971 68,040 19,628 11,438 8,190 703 IT;::::::::::: 15,744 454 913 8,852 2,821 117 19,366 138,517 200,836 68,542 19,948 11,727 8,221 345 18 15,307 917 829 8,690 2,818 81 19,347 139,758 201,630 67,470 19,939 11,729 8,210 397 25 14,915 667 872 9,171 2,812 77 19,382 140,168 201,868 68,097 20,142 11,805 8,337 689 Sept. \p 16,212 549 893 8,881 2,806 76 19,489 140,912 202,861 69,277 20,386 11,987 8,399 539 83' 16,648 273 875 9,153 2.807 77 19,471 140,710 202,991 68,299 20,665 12,260 8,405 384 \5P 17,417 284 918 9,234 2.808 75 19,453 142,917 205,868 69,856 20,595 12,204 8,391 426 22P 17,076 420 836 9,626 2,794 89 19,416 141,863 204,640 68,270 21,071 12,519 8,552 805 29P 16,740 209 823 9,734 2,810 89 19,461 141,860 204,745 68,103 21,415 12,920 8,495 748 1 Includes securities purchased under agreements to resell. 8 Includes minority interest in consolidated subsidiaries. 2 Includes official institutions and so forth. 9 Exclusive of loans and Federal funds transactions with domestic com- 3 Includes short-term notes and bills. mercial banks. 4 Federal agencies only. 10 All demand deposits except U.S. Govt, and domestic commercial 5 Includes corporate stock. banks, less cash items in process of collection. 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. 11 Certificates of deposit issued in denominations of $100,000 or more. 7 Includes securities sold under agreements to repurchase. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 Sept. Sept. Sept. Sept. Sept. 2nd 1st 29 22 15 8 1 Sept. Aug. July III II I half half Durable goods manufacturing: Primary metals 2,172 2,209 2,213 2,149 2,157 40 -69 -94 -123 -120 169 -20 149 Machinery 4,982 5,103 5,133 5,094 5,078 -124 -96 -18 -238 38 -247 -768 -209 Transportation equipment 2,763 2,770 2,825 2,651 2,644 134 -14 -95 25 -99 -92 169 -191 Other fabricated metal products... 1,976 2,029 2,087 2,044 2,036 -80 -9 -43 -132 132 68 -344 200 Other durable goods 2,824 2,840 2,867 22,,883344 2,812 9 -16 16 9 112 149 -198 261 Nondurable goods manufacturing: Food, liquor, and tobacco 2,694 2,719 2,642 2,575 2,515 207 102 -19 290 -163 -537 350 -700 Textiles, apparel, and leather 2,567 2,603 2,695 2,698 2,740 -144 65 47 -32 115 166 -395 281 Petroleum refining 1,119 1,141 1,128 1,104 1,121 51 -61 10 -64 -343 -113 -407 Chemicals and rubber 2,693 2,686 2,717 2,668 2,699 -11 -70 -82 -163 44 32 63 76 Other nondurable goods 1,920 11,,992288 1,917 1,861 1,860 55 14 -12 57 -30 -105 -113 -135 Mining, including crude petroleum and natural gas 3,825 3,825 3,827 3,762 3,762 73 -19 43 208 -278 -108 -257 -386 Trade: Commodity dealers 1,217 1,266 1,291 1,257 1,243 19 40 10 69 -174 -57 481 -231 Other wholesale 4,304 4,267 4,228 4,204 4,222 205 125 57 387 206 10 78 216 Retail 4,464 4,433 4,333 4,342 4,330 78 18 -24 72 185 162 -308 347 5,732 5,711 5,636 5,617 5,651 65 -202 -111 -248 -306 286 366 -20 Communication 1,564 1,585 1,539 1,536 1,559 32 -6 -3 23 184 49 19 233 Other public utilities 2,553 2,490 2,432 2,407 2,409 225 -18 140 347 185 -327 -386 -142 Construction 3,742 3,756 3,747 3,688 3,694 43 10 35 88 71 131 197 202 Services 7,604 7,607 7,615 7,584 7,614 18 -6 7 19 387 -200 525 187 All other domestic loans 5,352 5,317 5,311 5,331 5,265 164 119 26 309 290 -180 96 110 Bankers' acceptances 1,599 1,556 1,545 1,601 1,537 44 512 -98 458 -390 -164 1,186 -554 Foreign commercial and industrial loans 2,975 2,965 3,059 3,015 3,038 -74 367 34 327 106 140 255 246 Total classified loans 70,641 70,806 70,787 70,022 69,986 1,029 786 -63 1,752 531 -998 884 -467 Total commercial and industrial loans. 83,741 83,874 83,854 82,925 82,951 1,145 759 -692 1,212 1,320 -473 1,979 '•847 See NOTE to table below. 'TERM" COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1971 1971 1970 1971 Industry Aug. July June May Mar. Feb. Jan. 1st 25'- 28 30 26 31 24 27 III IV half Durable goods manufacturing: Primary metals 1,525 1,482 1,535 1,587 1,667 1,622 1,630 1,564 1,544 -62 -43 103 -150 60 Machinery 2,481 2,507 2,514 2,539 2,594 2,735 2,591 2,634 2,666 -58 -52 -90 -243 -142 Transportation equipment, 1,689 1,582 1,552 1,559 1,440 1,515 1,613 1,633 1,647 130 -54 -20 -22 -74 Other fabricated metal products 776 807 804 815 805 769 733 747 750 -39 82 -9 -65 73 Other durable goods 1,213 1,266 1,237 1,231 1,201 1,191 1,216 1,222 1,107 -18 15 127 -52 142 Nondurable goods manufacturing: Food, liquor, and tobacco, 988 941 948 972 919 982 974 971 949 16 -2 -11 -23 -13 Textiles, apparel, and leather 607 610 598 597 609 592 617 659 674 10 -20 -40 -94 -60 Petroleum refining 857 841 902 892 920 932 915 1,142 1,191 -35 -23 -298 -35 -321 Chemicals and rubber 1,792 1,815 1,828 1,824 1,726 1,822 1,850 1,834 1,800 -32 -26 1 69 -25 Other nondurable goods., 1,018 1,006 1,008 1,021 1,058 1,062 1,100 1,116 1,116 -3 -79 -71 -12 -150 Mining, including crude petroleum and natural gas. 2,936 3,002 3,019 2,992 3,058 3,089 3,123 3,270 3,354 -56 -131 -203 -135 -334 Trade: Commodity dealers., 109 117 101 97 88 81 80 79 79 12 17 1 -3 18 Other wholesale.... 852 839 850 842 809 813 782 754 783 10 60 26 59 86 Retail 1,477 1,456 1,423 1,421 1,423 1,404 1,417 1,459 1,450 56 4 18 39 22 Transportation 4,588 4,488 4,612 4,614 4,681 4,757 4,867 4,763 4,731 -26 -253 303 147 50 Communication 420 422 471 468 439 426 402 398 398 -48 66 -13 -33 53 Other public utiUties 1,273 1,181 1,141 1,095 1,038 991 973 1,056 1,029 178 122 -45 -47 77 Construction 1,197 1,208 1,229 1,192 1,178 1,164 1,107 1,063 1,048 5 85 63 -87 148 Services 3,357 3,320 3,247 3,269 3,192 3,249 3,142 3,154 3,186 88 127 -67 77 60 All other domestic loans ... 1,388 1,360 1,309 1,247 1,259 1,223 1,268 1,319 1,346 141 -21 -17 60 -38 Foreign commercial and industrial loans 1,892 1,950 1,908 1,892 1,882 1,840 1,792 1,716 1,723 100 76 112 176 Total loans 32,435 32,200 32,236 32,166 31,986 32,259 32,192 32,553 32,571 269 -26 -166 -264 -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 • OCTOBER 1971 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS^ an billions of dollars) Type of holder TToottaall CCllaassss ooff bbaannkk aanndd mmoonntthh ddeeppooggttss.. Financial Nonfinancial Consumer Foreign All 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—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—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 July 14.1 54.7 24.8 1.2 5.4 100.3 Aug 13.3 53.5 24.3 1.2 5.0 97.3 1 Including cash items in process of collection. from reports supplied by a sample of commercial banks. For a detailed description of the type of depositor in each category, see June 1971 NOTE:—Daily-average balances maintained during month as estimated BULLETIN, p. 466. DEPOSITS ACCUMULATED FOR PAYMENT OF PERSONAL LOANS (In millions of dollars) Class of Dec. 31, Dec. 31, Dec. 31, June 30, Class of Dec. 31. Dec. 31, Dec. 31, June 30, bank 1968 1969 1970 1971 bank 1968 1969 1970 1971 All commercial 11111,,,,,222221111166666 11111,,,,,111113333311111 888880000044444 777774444466666 All member—Cont. Insured 11111,,,,,222221111166666 11111,,,,,111112222299999 888880000033333 777774444455555 Other reserve city 333333333322222 333330000044444 111114444433333 111112222255555 National member 777773333300000 666668888888888 444443333333333 444440000077777 666660000055555 555557777711111 444443333377777----- 444441111111111 State member 222220000077777 111118888888888 111114444477777 111112222299999 All nonmember 222227777788888 222225555555555 222222222244444 222221111100000 All member 999993333377777 888887777766666 555558888800000 555553333366666 Insured 222227777788888 222225555533333 222222222233333 222220000099999 Noninsured 22222 11111 11111 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
OCTOBER 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 DDDaaattteee By type of loan By type of loan TToottaall TToottaall Commercial Commercial and All other and AH other industrial industrial 1971—June 2 2,861 1,827 1,034 1,931 414 1,517 9 2,797 1,838 959 1,937 419 1,518 16 2,752 1,807 945 1,942 422 1,520 23 2,801 1,877 924 1,949 418 1,531 30 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 1,987 435 1,552 Aug. 4 2,803 1,878 925 2,037 470 1,567 11 2,884 1,964 920 2,030 450 1,580 18 2,655 1,772 883 '•2,045 468 n,577 25 2,764 1,829 935 ^2,033 460 '•1,573 SSeepptt.. 11 2,998 1,849 1,149 2,017 436 1,581 88 2,822 1,823 999 2,026 438 1,588 15 2,818 1,819 999 2,020 425 1,595 22 2,906 1,835 1,071 2,037 417 1,620 29 2,960 1,896 1,064 2,036 421 1,615 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 millicms 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 Im or - ts p E o x rt - s All re B l a a n te k d Other 1 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 e d U f n r i o t m ed other bills bought acct. corr. States States 196 4 8,361 2,223 6,138 3,385 1,671 1,301 370 94 122 1,498 667 999 1,719 196 5 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 196 6 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 196 7 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 196 8 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 196 9 31,709 1,216 10,601 3,078 16,814 5,451 1,567 1,318 249 64 146 3,674 1,889 1,153 2,408 1970—Aug. 36,570 802 11,242 6,501 18,025 5,979 1,911 1,541 370 63 253 3,752 2,354 1,294 2,331 Sept. 33,958 505 12,013 4,115 17,325 5,848 1.952 1,557 395 87 235 3.574 2,396 1,285 2,167 Oct.. 34,401 520 12,564 3,179 18,138 6,167 2,125 1,737 388 73 238 3,731 2,553 1,323 2,292 Nov. 33,966 526 12,775 2,600 18,065 6,267 2,368 1,875 493 87 243 3,569 2,490 1,388 2,390 Dec.. 31,765 409 12,262 1,940 17,154 7,058 2,694 1,960 735 57 250 4,057 2,601 1,561 2,895 1971—Jan.. 32,295 362 13,071 1,668 17,194 6,912 2,742 2,058 684 59 270 3,841 2,589 1,555 2,768 Feb., 32,506 383 13,538 1,518 17,067 6,984 3,089 2,306 784 54 266 3.575 2,618 1,520 2,847 Mar. 31,223 355 13,215 1.337 16,316 7,174 2.953 2,276 678 138 255 3,827 2,681 1,519 2,974 Apr. 31,367 431 13,058 1,363 16,515 7,301 2,893 2,320 573 56 236 4,116 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 -•29,472 448 11,288 1,285 •-16,451 '•7,645 >•2,807 2,355 451 62 230 4,546 3,028 1,467 3,150 July. 29,746 469 11,001 1,339 16,937 7,454 2,594 2,168 426 55 228 4,577 3,118 1,388 2,948 Aug. 30,057 454 11,494 1.338 16,771 8,377 2,612 2,131 481 107 245 5,413 3,405 1,505 3,467 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 • OCTOBER 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 51^-6 1951—Jan. 8 1959—May 18 fA 1969—Jan. 7 Oct. 17 Sept. 1 Mar. 17 193 0 31^-6 Dec. 19 3 June 9 193 1 2%-5 1960—Aug. 23 4V2 1 1 9 9 3 3 2 3 3 1 V 1 4 / - 4 A 1953—Apr. 27 3V4 1965—Dec. 6 1970— S M e a p r t . . 2 2 5 1 19 1 3 9 4 4 — 7 (Nov.) m 1 19 9 5 5 5 4 — — A O M u c a t g r . . . 1 1 4 7 4 3 3 31 V / 4 I 1966— J A M u u a n g r e . . 2 1 1 9 0 6 I 6 P . N N De o o c v v . . . 2 1 2 2 3 2 , Effective date 1956— A A u p g r. . 2 1 1 3 3 4 V 4 1967—J N M a o a n v r . . . 2 2 2 7 0 6 -27... SVi-SVA 1971—J J J a a a n n n . . . 1 1 5 8 6 Feb. 16 1947—Dec. 1... iy4 1957—Aug. 6. ... 1968—Apr. 19 Mar. 11 Sept. 25 Mar. 19 1948—Aug. 1... 2 1958—Jan. 22 4 Nov. 13 6V2 Apr. 23, 1950—Sept. 22 2V4 A Se p p r t . . 2 1 1 1 . . . 3 4 1 /2 D D e e c c . . 1 2 8 6 66 VV44 -6V4 J J M u u a l l y y y 11 6 7 . , . 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 Aug. May Aug. May Aug. May Aug. May Aug. May Aug. May 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Short-term 35 centers 6.50 6.00 7.70 7.47 7.28 6.94 6.88 6.37 6.57 6.04 6.27 5.76 New York City 6.25 5.66 7.49 6.85 7.01 6.66 6.64 6.13 6.37 5.82 6.17 5.56 7 other Northeast 6.75 6.25 7.88 7.69 7.52 7.18 7.07 6.58 6.81 6.22 6.42 5.88 8 North Central 6.45 5.95 7.37 7.08 7.17 6.69 6.83 6.25 6.45 5.97 6.27 5.78 7 Southeast 6.73 6.37 7.75 7.67 7.36 7.20 6.86 6.54 6.62 6.12 6.46 6.05 8 Southwest 6.60 6.17 7.62 7.35 7.06 6.76 6.79 6.33 6.74 6.19 6.31 5.87 4 West Coast 6.56 6.12 8.06 7.84 7.44 7.14 7.11 6.43 6.55 6.10 6.31 5.91 Revolving credit 35 centers... i 6.31 5.74 7.28 6.62 7.03 6.53 6.50 5.90 6.40 5.83 6.28 5.71 New York City 6.31 5.74 6.74 6.33 6.73 6.77 6.33 5.83 6.28 5.66 6.30 5.73 7 other Northeast 6.64 5.86 8.02 7.62 7.66 6.54 6.65 5.84 6.86 5.74 6.58 5.87 8 North Central 6.37 5.82 7.57 6.65 7.13 6.30 6.46 5.73 6.61 5.79 6.30 5.82 7 Southeast 6.20 6.29 6.52 6.24 6.48 6.76 6.26 6.66 6.09 6.18 6.14 6.08 8 Southwest 6.91 6.05 7.76 6.81 6.86 6.89 7.25 6.46 6.71 6.61 6.86 5.69 4 West Coast 6.20 5.66 8.06 7.11 7.13 6.42 6.40 5.85 6.18 5.80 6.17 5.61 Long-term 35 centers 6.75 6.38 7.59 7.63 7.46 7.25 7.05 6.91 7.03 6.22 6.60 6.24 New York City 6.35 6.35 6.18 5.65 6.80 6.35 6.60 6.53 6.65 6.53 6.26 6.29 7 other Northeast 6.87 6.64 8.37 8.11 7.47 7.44 7.30 7.38 6.67 6.19 6.59 6.27 8 North Central 6.99 6.49 7.03 7.44 7.73 7.06 6.84 6.88 6.82 6.34 7.00 6.41 7 Southeast 7.52 7.67 7.35 7.07 7.61 8.13 8.53 8.41 7.27 7.00 7.00 7.25 8 Southwest 7.33 6.29 7.48 8.02 7.48 6.95 7.46 6.69 8.02 6.18 6.68 6.19 4 West Coast 6.52 6.04 7.72 7.80 7.39 7.18 7.03 6.41 6.60 6.05 6.45 5.99 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
OCTOBER 1971 • INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) U.S. Government securities (taxable)4 FFFiiinnnaaannnccceee PPPrrriiimmmeee CCCOOO... PPPrrriiimmmeee PPPeeerrriiioooddd mmm III ccc ooo ooo TTT nnn mmm lll ttt hhh lll sss ... 111 mmm ddd 333 ppp ppp iii ooo --- rrr lll aaa aaa eee nnn ttt ppp ccc ooo ccc ttthhh eee eee ttt 666 lll rrr sss ddd yyy --- 222 ,,, 999 bbb aaa 000 aaa aaa ccc nnn nnn ddd ccc ccc kkk eee aaa eee eee ppp yyy sss rrr ttt sss sss ,,, --- iii ''' FFF fff rrr eee uuu aaa ddd nnn ttt eee eee ddd rrr sss 333 aaa lll n R e a w t 3 e i - s m s o u n o e n th b M i y l a l i s e r k 5 ld e t n R ew at 6 e i - s m s o u o n e n th b M i y l a l i s e r 5 k ld e t k B 9 e i - l t l t s y o i ( e m 1 l 2 d a - ) r m 5 - ont O h t i h ss e u rs e s 33 iiss -- yy ss tt ee uu oo aa ee rr ss 55 -- 77 1963 3.55 3.40 3.36 3.18 3.157 3.16 3.253 3.25 3.30 3.28 3.72 1964 3.97 3.83 3.77 3.50 3.549 3.54 3.686 3.68 3.74 3.76 4.06 1965 4.38 4.27 4.22 4.07 3.954 3.95 4.055 4.05 4.06 4.09 4.22 1966 5.55 5.42 5.36 5.11 4.881 4.85 5.082 5.06 5.07 5.17 5.16 1967 5.10 4.89 4.75 4.22 4.321 4.30 4.630 4.61 4.71 4.84 5.07 1968 5.90 5.69 5.75 5.66 5.339 5.33 5.470 5.48 5.45 5.62 5.59 1969 7.83 7.16 7.61 8.22 6.677 6.64 6.853 6.84 6.77 7.06 6.85 1970 7.72 7.23 7.31 7.17 6.458 6.42 6.562 6.55 6.53 6.90 7.37 1970—Sept 7.32 7.12 7.03 6.29 6.244 6.12 6.450 6.47 6.40 6.68 7.24 Oct 6.85 6.76 6.54 6.20 5.927 5.90 6.251 6.21 6.23 6.34 7.06 Nov 6.30 6.16 5.79 5.60 5.288 5.28 5.422 5.42 5.39 5.52 6.37 Dec 5.73 5.48 5.32 4.90 4.860 4.87 4.848 4.89 4.87 4.94 5.86 1971—Jan 5.11 5.07 4.77 4.14 4.494 4.44 4.510 4.47 4.39 4.29 5.72 Feb 4.47 4.37 4.09 3.72 3.773 3.69 3.806 3.78 3.84 3.80 5.31 Mar 4.19 4.05 3.80 3.71 3.323 3.38 3.431 3.50 3.61 3.66 4.74 Apr 4.57 4.27 4.36 4.15 3.780 3.85 3.927 4.03 4.09 4.21 5.42 May 5.10 4.69 4.91 4.63 4.139 4.13 4.367 4.34 4.64 4.93 6.02 June 5.45 5.24 5.33 4.91 4.699 4.74 4.890 4.95 5.32 5.57 6.36 July 5.75 5.54 5.60 5.31 <^5.405 5.39 ^=5.586 ^^5.62 <^5.73 «5.89 ^^6.77 Aug 5.73 5.57 5.57 5.57 5.078 4.93 5.363 5.22 5.52 5.67 6.39 Sept 5.75 5.44 5.49 5.55 4.668 4.69 4.934 4.97 5.20 5.31 5.96 Week ending— 1971—June 5 5.38 5.13 5.00 4.82 4.344 4.28 4.508 4.52 4.78 4.99 5.92 12 5.38 5.13 5.18 4.77 4.510 4.58 4.720 4.79 5.13 5.37 6.22 19 5.48 5.19 5.43 4.89 4.989 4.94 5.200 5.16 5.43 5.76 6.54 26 5.50 5.39 5.50 4.96 4.953 4.86 5.133 5.06 5.56 5.74 6.46 July 3 5.65 5.45 5.60 5.07 5.080 5.17 5.277 5.37 5.77 6.06 6.70 10 5.75 5.48 5.63 5.18 5.467 5.40 5.614 5.53 5.65 5.96 6.70 17 5.75 5.56 5.50 5.13 5.376 5.38 5.483 5.52 5.61 5.70 6.64 24 5.75 5.56 5.63 5.46 5.546 5.45 5.724 5.73 5.77 5.85 6.82 31 5.75 5.58 5.63 5.38 5.554 5.39 5.833 5.77 5.87 6.00 6.92 Aug. 7 5.75 5.60 5.63 5.57 5.273 5.28 5.618 5.67 5.90 6.02 6.85 14 5.83 5.68 5.63 5.59 5.372 5.24 5.770 5.66 5.92 6.06 6.81 21 5.78 5.58 5.55 5.59 4.921 4.71 5.202 4.89 5.24 5.41 6.05 28 5.63 5.46 5.53 5.48 4.747 4.69 4.860 4.87 5.19 5.39 6.06 Sept. 4 5.70 5.44 5.50 5.59 4.549 4.47 4.771 4.79 5.13 5.20 5.89 11 5.75 5.44 5.50 5.73 4.538 4.62 4.846 4.92 5.17 5.23 5.94 18 5.75 5.44 5.50 5.59 4.834 4.79 5.085 5.02 5.22 5.35 6.00 25 5.75 5.45 5.50 5.46 4.743 4.74 4.993 5.04 5.26 5.41 6.01 1 Averages of daily offering rates of dealers. 4 Except for new bill issues, yields are averages computed from daily 2 Averages of daily rates, published by finance companies, for varying closing bid prices. maturities in the 90-179 day range. 5 Bills quoted on bank discount rate basis. 3 Seven-day average for week ending Wednesday. 6 Certificates and selected note and bond issues. 7 Selected note and bond issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 36 INTEREST RATES • OCTOBER 1971 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings / Period United and local rating group price ratio price ratio States (long- lotai^ term) Total 1 Aaa Aaa Baa In t d ri u a s l - 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 - 196 2 3.95 3.30 3.03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 196 3 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 196 4 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 196 5 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 196 6 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 196 7 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 196 8 5.25 4.48 4.20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 196 9 6.10 5.73 5.45 6.07 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.05 197 0 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—Sep t 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 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 5.78 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 Aug 5.78 5.84 5.56 6.21 8.12 7.59 8.76 7.80 8.48 8.30 7.04 3.18 Sept.... 5.56 5.45 5.09 5.86 7.97 7.44 8.59 7.64 8.39 8.12 6.90 3.09 Week ending— 1971—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 Aug. 7... 5.93 6.13 5.85 6.45 8.21 7.69 8.85 7.89 8.53 8.41 7.10 3.28 14... 5.90 6.09 5.80 6.45 8.22 7.71 8.88 7.89 8.55 8.44 7.06 3.25 21... 5.64 5.42 5.15 5.75 8.02 7.49 8.66 7.72 8.31 8.23 6.99 3.12 28... 5.70 5.71 5.45 6.20 8.07 7.50 8.69 7.76 8.48 8.19 7.02 3.06 Sept. 4... 5.58 5.59 5.30 6.10 8.03 7.45 8.65 7.67 8.54 8.15 6.94 3.10 11... 5.51 5.40 5.00 5.80 7.97 7.42 8.62 7.62 8.45 8.11 6.87 3.03 18... 5.59 5.50 5.10 5.90 7.97 7.44 8.63 7.64 8.39 8.13 6.87 3.07 25... 5.59 5.51 5.15 5.90 7.96 7.44 8.57 7.65 8.32 8.12 6.85 3.11 Number of issues 2 119 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: 1 Begins June 30,1965, at 10.90. On that day the average price of a share 1 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 5Vi hours per day, or 27 Vi 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
OCTOBER 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 Exchange ( G t l U e o o r . n m S v g . t ) - , S l a o t n c a d a te l p A C o A o ra r A t - e Total In t d ri u a s l - R ro a a i d l- P u u ti b li l t i y c Total In t d ri u a s l - T p r t o i a o r n t n a s - - Utility na F n i- ce in to d t e a x l i 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—Sep t 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 (971—Jan 66.10 79.9 66.5 93.49 102.22 36.64 63.43 51.29 53.72 37.76 42.52 66.41 23.56 17,429 4,493 Feb 66.78 81.5 66.8 97.11 106.62 38.78 62.49 53.42 56.45 40.37 42.30 68.19 25.02 19,540 6,054 Mar 67.94 82.8 65.8 99.60 109.59 39.70 62.42 54.89 58.43 41.71 41.60 70.66 25.88 16,955 5,570 Apr 67.57 80.4 65.1 103.04 113.68 42.29 62.06 56.81 60.65 45.35 41.73 73.91 26.43 19,126 5,685 May.... 65.72 75.6 63.7 101.64 112.41 42.05 59.20 56.00 60.21 45.48 39.70 70.89 26.03 15,157 4,157 June.... 65.84 74.8 63.5 99.72 110.26 42.12 '•57.90 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 Aug 67.33 77.5 63.4 97.24 107.26 43.55 57.51 53.73 57.62 44.83 38.17 69.41 24.84 14,574 3,473 Sept 69.35 81.7 64.2 99.40 109.85 47.18 56.48 54.95 59.13 48.09 37.53 72.14 25.47 12,038 3,259 Week ending— 1971—Sept 4. 69.13 81.7 63.6 99.52 109.96 47.09 56.78 55.01 59.15 48.26 37.77 72.24 25.27 11,413 3,124 69.78 82.5 64.4 100.93 111.51 48.22 57.46 55.83 60.03 49.30 38.14 73.66 25.66 14,622 4,146 IS! 69.07 81.2 64.5 99.76 110.22 47.51 56.84 55.16 59.35 48.30 37.70 72.36 25.55 10,814 3,172 25, 69.07 80.4 64.1 98.80 109.21 47.08 55.95 54.60 58.81 47.62 37.17 71.32 25.41 12,235 2,775 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r p e a o a n e t n c e r t t - ) c F c h ( e e a p e n r e g s t r e ) & i s M (y a e tu ar r s it ) y L p r c ( o a p e ri t a e n c i n o r t e ) / (t d h c p o o P h r l u u l a i a s c r s r . - e e s o ) f (t a h d m L o o o l u o la a s u r n . n s o t ) f C c t ( r r p e a o a n e t n c e r t t - ) c F c h e ( e a p e n r e s g t r ) e & i s M (y a e tu ar r s it ) y L c r p ( o a p e r t i a n e c i n o r t e ) / (t d h c o o p P h u l r u l a i a s c r s r . - e e s o ) f (th d a L m o o o u l o la s 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 8.27 1.03 25.1 71.7 35.5 25.2 8.20 .92 22.8 71.1 30.0 21.0 1970—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 May 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 .74 26.3 73.7 37.5 27.3 7.38 .74 24.3 73.9 32.9 23.9 July 7.51 .90 26.3 74.5 36.8 27.1 7.50 0.75 24.2 74.5 31.6 23.2 Aug 7.60 .84 26.2 74.0 36.5 26.5 7.59 0.74 24.4 74.4 31.9 23.4 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 38 STOCK MARKET CREDIT • OCTOBER 1971 STOCK MARKET CREDIT REGULATORY STATUS OF MARGIN ACCOUNT DEBT AT BROKERS (In millions of dollars) (Per cent of total adjusted debt, except as noted) End of period B m ro a C 1 k r e r g e r i s n d it c B u e a s x t 2 n t o e k m n s d e e rs d T b o to y t a - l to a d C b n n m e u a c e b e s l e t - i r - s t s ' to c a C m b f r n n r e u a c e e e d s l e e t r - i - s s t ' b t c e r N r n e o b e x d k e y d - t e e i d r t s EEE ppp nnn eeerrr ddd iii ooo ooo ddd fff Un 2 d 0 er 2 A 0 d -2 ju 9 s ted 3 0 d ( - e p 3 b e 9 r t /c c o e 4 l n l 0 a t) - t e 49 ra l v 5 a 0 lu - e 5 9 6 m 0 o o re r jjj TTT uuu ((( lll ddd iii aaa mmm ooo sss ooo eee ooo ddd ttt ttt nnn bbb iii fff eee aaa --- lll sss ttt --- ddd lll dddooolll--- Unrestricted Restricted 1 lllaaarrrsss))) 1970—Aug. 3,810 2,300 6,110 (3) 2,083 Sept, 3,920 2,330 6,250 (3) 2,236 Oct. 4,010 2,270 6,280 S 2,163 1970—Aug.. .7 1.1 37.8 14.3 9.2 36.9 8,580 Nov, 4,010 2,320 6,332 2,197 Sept.. .6 l.l 45.5 12.0 8.9 31.9 8,900 Dec. 4,030 2,330 6,360 (3) 2,286 (3) Oct... .7 1.0 38.4 18.0 9.2 32.6 8,780 Nov.. 1.0 0.9 39.0 16.4 9.7 33.0 8,570 1971—Jan.. 4,000 2,300 6,300 2,452 (3) Dec.. .0 .3 47.0 13.7 9.5 29.4 8,140 Feb., 4,090 2,330 6,420 2,743 (3) Mar. 4,300 2,360 6,660 (3) 2,798 (3) 1971—Jan. . .0 .4 55.1 12.5 8.4 23.6 8,180 4,530 2,340 6,870 (3) 2,660 (3) Feb.. .0 .4 56.2 13.2 7.7 22.5 8,410 May 4,620 2,340 6,960 2,550 (3) Mar.. .0 .5 58.4 12.7 6.7 21.6 8,820 J J A u u u n l g y e . . 4 4 4 , , , 8 7 7 5 2 9 0 0 0 2 2 2 , , , 4 4 3 3 2 9 0 0 0 7 7 7 , , , 1 2 2 1 8 1 0 0 0 2 2 2 , , , 2 2 4 1 0 40 0 0 ( ( ( 3 3 3 ) ) ) J A M u p a n r y e . . . . . . . 2 0 3 . . . 4 3 2 6 5 4 0 4 7 . . . 6 4 0 2 1 1 3 2 7 . . . 1 1 9 6 6 7 . . . 8 0 6 2 2 2 0 0 1 . . . 7 9 3 9 9 8 , , , 2 0 9 0 9 3 0 0 0 July.. .1 .2 33.5 33.3 10.1 22.8 8,960 Aug.. .0 0.3 48.2 21.8 8.3 21.2 9,070 1 End-of-month data. Total amount of credit extended by member firms of the N.Y. Stock Exchange in margin accounts, excluding credit extended on convertible bonds and other debt instruments and in special subscrip- 1 Debt representing more than 30 per cent but less than 35 per cent of tion accounts. collateral value is unrestricted as of May 6, 1970, but is not separable from 2 Figures are for last Wed. of month for large commercial banks re- the remainder of this category. porting weekly and represent loans made to others than brokers or dealers for the purpose of purchasing or carrying securities. Excludes loans col- NOTE.—Adjusted debt is computed in accordance with requirements set lateralized by obligations of the U.S. Govt. forth in Regulation T and often differs from the same customer's net debit 3 Series discontinued. balance mainly because of the inclusion of special miscellaneous accounts in adjusted debt. Collateral in the margin accounts covered by these data NOTE.—Customers' net debit and free credit balances are end-of-month now consists exclusively of stocks listed on a national securities exchange. ledger balances as reported to the New York Stock Exchange by all Unrestricted accounts are those in which adjusted debt does not exceed the member firms that carry margin accounts. They exclude balances carried loan value of collateral; accounts in all classes with higher ratios are for other member firms of national securities exchanges as well as balances restricted. of the reporting firm and of its general partners. Net debit balances are total debt owed by those customers whose combined accounts net to a debit. Free credit balances are in accounts of customers with no unfulfilled commitments to the broker and are subject to withdrawal on demand. Net credit extended by brokers is the difference between customers' net debit SPECIAL MISCELLANEOUS ACCOUNT BALANCES and free credit balances since the latter are available for the brokers' use AT BROKERS, BY EQUITY STATUS OF ACCOUNTS until withdrawn. (Per cent of total, except as noted) EQUITY STATUS OF MARGIN ACCOUNT DEBT Equity class of accounts AT BROKERS NNeett in debit status TToottaall (Per cent of total debt, except as noted) EEnndd ooff ppeerriioodd ccrreeddiitt bbaallaannccee Total Equity class (per cent) ssttaattuuss 60 o r p e m r o c r e e n t 6 L 0 e p ss e r th c a e n n t oo (( ff mm dd iill oo llii ll oo llaa nn rr ss ss )) debt End of l ( i m on il s - 1970—Aug 46.7 42.6 10.7 4,430 period d o o f l - 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er Oct 4 4 6 6 . . 6 2 4 4 4 3 . . 5 9 9 9. . 9 0 4 4 , , 4 4 8 3 0 0 lars)! 45.5 43.9 10.6 4,240 Dec 48.2 42.3 9.4 4,030 1970— S A e u p g t . . . . 3 3 , , 9 81 2 0 0 1 1 0 1 . . 7 4 1 18 5 . . 3 1 2 2 4 2 . . 4 9 1 1 6 6 . . 6 7 1 13 3 . . 1 6 2 1 1 6 . . 1 0 Feb 4 4 9 9 . . 2 1 4 4 4 3. . 6 2 7 6. . 7 2 4 4 , , 3 2 8 6 0 0 Oct... 4,010 9.9 15.2 25.5 16.9 14.3 18.2 Mar 48.6 45.5 5.9 4,400 Nov.. 4,010 10.4 14.8 26.1 17.5 14.1 17.2 46.8 48.1 5.1 4,500 Dec.. 4,030 11.0 16.1 27.1 16.8 13.5 15.5 46.5 47.1 6.4 4,400 45.1 47.8 7.0 4,250 1971—Jan. . 4,000 12.1 19.6 28.3 17.1 10.0 12.8 July 45.2 46.7 8.1 4,190 Feb.. 4,090 11.4 19.5 31.1 16.3 9.3 12.3 44.6 48.0 7.4 4,230 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 NOTE.—Special miscellaneous accounts contain credit balances that J J A u u u l n g y e . . . . . 4 4 4 , , , 7 8 7 2 9 5 0 0 0 9 9 8 . . . 3 6 3 1 1 14 4 2 . . . 4 4 2 2 3 3 9 5 4 . . . 1 9 4 2 2 1 5 0 9 . . . 1 2 6 1 8 8 1 . . . 9 6 0 1 1 12 4 2 . . . 6 1 2 p c m sa o u a l r l e y l c a s h t b a e p e s r r a o e u l s c s . e i e n e B d d a t s b h la ) y e n o c c c c e u u c s s s u t t r o m o . m m a e y e r r s a 's r a is m s e a t a h r s e g i t n m r a a a n r c s g c fe i o n r u s d n b t e p a o s o r e s d i d t e o r p e n o q s l u o it i a s r n e d o v f a f c o lu a r e s s h a d o ( d u f i s t o i u o t a h n l e l a y r l 1 See note 1 to table above. NOTE.—Each customer's equity in his collateral (market value of collateral less net debit balance) is expressed as a percentage of current collateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments 3 End of period M g o ag r e t- Other G U o .S vt . . g S l a o o t n c a v d a t t e l . o C t r a o h a n r e t p d e r o 1 . Cash O as t s h e e t r s g l r i e T e a a t s o n b i n e e e t i d r s l a r v i a l - e l De it p s o 2 s - l O ia t t i b h e i s e l i r - G r c e e o s a n u e c e n r - r v ts a e l class ( if in ie d m b o y n t m hs a ) t urity accts. 3 or 3-6 6-9 Over Total less 9 196 3 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 196 4 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 196 5 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 196 6 47.193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 196 7 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 196 8 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1,034 1,166 3,011 196 9 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970—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.... 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^ . 59,546 2,696 3,409 319 16,649 1,281 1,665 85,565 77,683 1,956 5,926 1,118 517 343 1,244 3,222 July... 59,935 2,545 3,558 326 16,969 1,198 1,750 86,282 78,130 2,198 5,924 1,015 582 347 1,260 3,204 Aug. .. 60,350 2,685 3,517 338 17,159 1,151 1,692 86,892 78,437 2,423 6,031 978 557 374 1,246 3,155 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 a T s o s t e a ts l United State and M ga o g r e t- s e R st e a a te l P lo o a li n c s y a O s t s h e e ts r Total States local Foreign Total Bonds Stocks Statement value: 196 3 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 196 4 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 196 5 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 196 6 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 196 7 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 196 8 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 196 6 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 196 7 177,361 10,530 4.587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 196 8 187,695 10,483 4,365 3,036 3,082 79,403 •68,575 10,828 70,071 5,573 11,284 10,881 196 9 197,208 10,914 4,514 3,221 3.179 84,566 70,859 13,707 72,027 5,912 13,825 9,964 1970—July... 201,487 11,148 4,707 3,258 3,183 85,664 72,433 13,231 73,388 6,159 15,375 9,753 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—Ja n 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 June... 214,279 10,786 4,242 3,412 3,132 95,031 76,644 18,387 74,535 6,644 16,516 10,767 July.... 215,284 11,031 4,466 3,430 3,135 95,683 77,333 18,350 74,583 6,729 16,590 10,668 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 • OCTOBER 1971 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Assets Liabilities commitments 4 Total assets— End of period M ga o g r e t s - I s n i m t e 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 in it g a s l R a d p e n i r s v d o e i d f r u i v e t n s e d - s m ro B o w n o e r e - y d 3 p L r o o i c a n e n s s s Other d p M u e a r r i i d o n e d g O e p u in n t e s g d r t i a o 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 111,116 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—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 May.. 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.. 161,440 18,609 2,783 10,110 192,942 163,313 12.357 7,903 4,734 4,635 3,537 8,545 July.. 163,951 19,319 2,153 10,192 195,615 164,864 12.358 8,039 4,953 5,401 3,144 8,555 Aug. 2' 166,323 19,027 2,087 10,430 197,867 165.970 12,352 8,226 5,024 6,295 2,853 8,295 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 BAUNCE 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 ppeerriioodd va A n to d c es I m nv e e n s ts t- C a d a n e s d h B a o n n d d s M b d e e e m r - - C s a t p oc it k a l jTvV g /Ti a Ro g TRr e tT- D t e a u b n re e d s n c L o o o t a o p n e s r - D t e u b re e s n - L a d o n i a s d n s D t e u b re e s n - M g o ag r e t- Bonds mem- posits notes posits notes atives counts loans bers (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—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 July.. 7,338 3,211 85 7,297 1,699 1,600 15,674 15,638 1,997 1,726 5,905 5,712 7,650 6,884 Aug... 7,513 2,744 86 7,218 1,532 1,603 16,204 15,260 1,942 1,791 5,866 5,742 7,709 6,884 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
OCTOBER 1971 • FEDERALLY SPONSORED CREDIT AGENCIES A 41 OUTSTANDING ISSUES OF FEDERALLY SPONSORED AGENCIES, AUGUST 31, 1971 Cou- Amount Cou- Amount Cou- Amount Agency, and date of issue pon (millions Agency, and date of issue pon (millions Agency, and date of issue pon (millions and maturity rate of dollars) and maturity rate of dollars) and maturity rate of dollars) Federal home loan banks Federal National Mortgage Federal intermediate Notes: Association—Cont. credit banks Debentures—Cont: Debentures: Bonds: 5/10/69 - 11/10/71 350 12/1/70 - 9/1/71 . . .. 5.70 432 9/25/70 - 9/27/71 7.35 338 3/10/70 - 12/10/71 500 1/4/71 - 10/4/71.... 5.30 453 10/27/69 - 11/26/71.... 8.20 250 2/10/60 - 2/10/72 98 2/1/71-11/1/71 4.55 696 11/25/69 - 2/25/72 8.20 200 3/10/69 - 3/10/72 250 3/1/71-12/1/71 4.00 623 6/26/70 - 2/25/72 8.20 300 10/14/69 - 3/10/72 200 4/1/71 - 1/3/72 3.85 691 5/25/70 - 5/25/72 8.15 200 12/11/61 - 6/12/72 100 5/3/71-2/1/72 4.60 583 7/27/71 - 8/25/72 400 2/10/70 - 6/12/72 8.70 300 6/1/71 -3/1/72 5.70 436 9/25/70 - 11/27/72 250 5/11/70 - 9/11/72 8.40 400 7/1/71 -4/3/72 5.85 375 2/25/70 - 2/26/73 8.35 350 6/10/70 - 9/11/72 7.40 200 8/2/71-5/1/72 614 614 5/23/71 -2/26/73 5.70 400 11/10/69 - 12/11/72.... 8.00 200 3/2/70 - 3/1/73 8.15 203 3/25/71 -5/25/73 4.20 400 10/13/70 - 12/11/72.... 7.20 400 9/1/70-7/2/73 7.75 200 10/27/70-8/27/73 7.20 450 11/10/70 - 3/12/73 7.30 450 7/1/71 - 1/2/74 6.85 212 1/26/70 - 1/25/74 8.40 300 12/12/69 - 3/12/73 8.30 250 1/4/71 - 7/1/74 5.95 224 6/26/70 - 2/25/74 8.40 250 6/12/61 - 6/12/73 4V4 146 6/25/71 -5/25/74 6.35 300 7/10/70 - 6/12/73 8.35 350 Federal land banks 8/25/69 - 8/25/74 7.65 184 7/12/71 -6/12/73 6.75 550 Bonds: 8/27/71 - 2/25/74 7.10 250 3/10/70 - 9/10/73 8.10 300 2/15/57 - 2/15/67-72 72 11/25/69 - 11/25/74.... 8.05 232 6/10/71 -9/10/73 6.13 350 10/20/68 - 10/20/71. 447 1/26/71 - 2/25/75 6.10 250 12/10/70 - 12/10/73. . .. 5.75 500 8/20/68 - 2/15/72... 230 8/25/70 - 5/26/75 8.00 265 4/10/70 - 3/11/74 7.75 350 2/23/71 - 4/20/72.... 300 6 7 3 8 1 1 / / / / 0 2 2 2 2 2 / / 5 7 7 5 1 1 / / / / 5 8 7 7 7 7 / 1 0 1 0 / 7 7 0 - - 0 - - 5 - - 2 / 2 8 2 / 1 1 2 / / 1 5 0 2 2 5 / / 5 5 / / 2 1 7 7 / / 5 5 7 7 8 6 / 5 0 / 7 8 5 0 6 7 7 I 6 7 V . . . . . s 9 7 8 9 5 5 5 0 5 0 2 2 2 3 3 3 0 0 5 0 5 5 0 0 0 0 0 0 9 5 4 2 8 1 / / / / / 1 1 1 1 1 5 / 0 0 2 0 / 1 7 / / / / 0 7 7 6 0 7 / 1 1 9 1 7 0 - - - - - 6 - 9 6 1 / 9 1 / 2 / / 1 3 1 0 / 1 0 1 / 0 / 0 1 / 0 / 7 7 / 0 7 / 5 7 4 7 4 / 4 7 4 5 5 7 6 7 7 5 . . . . . . 2 5 8 9 1 6 5 5 5 0 0 5 2 5 4 2 3 3 5 0 0 5 0 0 0 0 0 0 0 0 9 4 9 7 6 1 / / / / / 0 2 2 2 1 2 / 2 0 0 4 2 2 / / / / / 3 7 6 7 5 7 / 1 9 1 6 0 7 2 - - - - - 4 - 1 / 9 9 7 0 2 1 / / / / 0 1 1 2 0 2 5 / 5 0 / 3 2 7 / / / / 3 7 7 7 2 7 / 2 2 2 . 2 7 . . . . . 2 . . . . . . . . . . . 4 4 4 2 3 1 3 4 4 0 3 0 7 2 6 0 7 9 10/13/70 - 9/10/75 7.50 350 7/20/70 - 1 /22/73. . . 407 3/11/71 - 3/10/76 5.65 500 2/20/63 - 2/20/73-78 148 Federal National Mortgage 6/10/71 -6/10/76 6.70 250 1/20/70 - 7/20/73... 198 Association— 7/12/71 - 12/10/76 7.45 300 8/20/73 - 7/20/73.... 350 Secondary market 2/13/62 - 2/10/77 198 4/20/70 - 10/22/73.. 300 Disco o u pe n r t a n ti o o t n e s s 1,872 5 1 / 2 1 / 0 1 / 0 7 / 1 7 0 - 6 - /1 6 0 /1 /7 0 7 / 77 f 6. is 5 0 2 1 5 5 0 0 2 1 / 0 2 / 0 2 / 0 7 / 2 7 0 - - 2 4 /2 /2 0 2 /7 /7 4 4 . . . . . 3 1 5 5 4 5 Ca 9 4 p / / i 3 1 t 0 / a 7 l / 0 6 8 d - e - b 4 e / n 1 1 t 0 / u / 7 1 r 5 e / 7 s 3 : 6 8 . . 0 0 0 0 2 2 5 0 0 0 2 3 1 / / / 1 1 2 1 0 1 / / / 7 7 7 1 1 1 - - - 6 6 / 6 1 /1 / 0 1 0 / 0 / 8 8 / 3 2 8 1 7 6 6 . . . 2 7 6 5 5 5 2 2 2 5 5 0 0 0 0 4 4 2 / / / 2 2 2 0 0 0 / / / 6 7 7 5 1 0 - - - 10 4 1 / / / 2 2 2 1 1 0 / / / 7 7 7 4 5 5 . . . . . . . . . 2 2 3 0 2 0 0 0 0 4/12/71-6/11/84 6.25 200 7/20/71 - 10/20/75... 300 2/21/66 - 2/24/76.., 123 Mortgage-backed bonds: 7/20/66 - 7/20/76... 150 9/9/70- 10/2/72 7.50 400 Banks for cooperatives 5/2/66 - 4/20/78.... 150 6/1/70 - 6/2/75. 8.38 250 Debentures: 2/20/67 - 1/22/79... 285 9/29/70 - 10/1/90. 8.63 200 4/1/71 - 10/4/71 3.70 348 2/23/71 - 4/20/81.... 224 5/3/71-11/1/71 4.45 279 Debentures: 6/1/71 - 12/1/71 ill 299 9/11/61 - 9/10/71.. 96 7/1/71-1/3/72 300 9/10/68 - 9/10/71.. 350 8/2/71-2/1/72 6yrsi o 465 6/10/70 - 10/21/71. 500 10/1/70 - 10/1/73 100 NOTE.—These securities are not guaranteed 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 • OCTOBER 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 lays! deficit debt Agency accounts Less: Total sury ing, receipts pendi- (-) securi- securi- Special borrow- operat- Other net 4 tures ties ties notes 3 ing ing Special Other balance issues 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 2-1,295 596 1,616 269 197 0 193,743 194,456 2,131 196,588 -2,845 17,198 -1,739 9,386 676 5,397 2,151 -581 -982 19712' 188,332 210,653 922 211,574 -23,242 27,211 -347 6,616 800 19,448 710 -979 3,526 Half year: 1969—July-Dec.. . 90,833 97,563 1,364 98,927 -8,093 14,505 -429 3,935 330 9,81 -767 315 -2,170 1970—Jan.-June.. 102,910 96,893 767 97,661 5,248 2,693 -1,310 5,451 346 -4,415 2,918 -896 1,188 July-Dec.. . 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—Au g '•15,161 '•17,474 66 '•17,540 -2,380 4,333 -4 1,539 72 '•2,718 -58 •'•-379 '•-775 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 JUNEP 22,449 20,003 112 20,115 2,334 1,285 -553 1,059 -17 -310 1,835 -268 -458 July 13,198 18,507 49 18,556 -5,358 7,169 -960 1,861 122 4,226 -1,559 -690 -1,117 Aug 15,652 19,276 306 19,582 -3,930 9,293 20 2,309 150 6,854 2,337 -819 -1,407 Selected balances Treasury operating balance Federal securities End D M e e b m t o o : f of Less: Govt.period B F a . n R k . s ac l c T a o o a n a u x d n n ts ba G la o n ld c e Total se P c d u u e b r b i l t i t i c e s s A ec g u e r n it c ie y s S is p G I s e n u o c v e i v e s a t s l , t m ac e c n o t O s u n t o h ts f e r S n L p o e e t s e c s s ia : 3 l E p T h q u o b e u b y t l a d l a i l l c s : s c p p o r o N i r n v p o s a s w o 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 1971f 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—Au g 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—Ja n 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 36,886 July.... 1,274 7,372 '•113 8,755 405,299 11,203 '•84,601 '•22,522 825 308,554 37,985 Aug.. . . 987 8,408 113 9,508 414,962 11,223 86,910 22,672 825 315,408 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 Cooperatives 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
OCTOBER 1971 • FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (In millions of dollars) Budget receipts Individual income taxes i C n o co 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 e s Period TTToootttaaalll WW hhee iitt ll hh dd -- NN ww hh oo ii ee tt ll nn hh dd -- -- ffuu RR nn ee dd -- ss tt NN oo ee ttaa tt ll cc GG ee rr rr ii ee oo pp -- ss ttss ss ffuu RR nn ee dd -- ss c E o P m n t a a t y p x r - i e l b o s u y t a m S i n o e e d n l n f s - t i ii ee nn UU mm ss nn uu pp -- rr ll.. .. cc OO ee nn rr tt iipp ee hh ee tt -- tt ee ss rr 22 tt NN oo ee ttaa tt ll EEE tttaaa xxx xxx ccc eee iiisss sss eee ttt CCC ooo uuu mmm sss sss --- EEE aaa ggg sss nnn iii ttt fff aaa ddd ttt ttt eee ccc MMM eee rrr iii iii ppp eee sss --- ttt ccc sss ... 333 roll empl. taxes Fiscal year: 196 8 153,671 57,301 20,951 9,527 68,726 29,897 1,232 27,680 1,544 3,346 2,052 34,622 14,079 2,038 3,051 2,491 196 9 187,784 70,182 27,258 10,191 87,249 38,338 1,660 32,521 1,715 3,328 2,353 39,918 15,222 2,319 3,491 2,908 197 0 193,743 77,416 26,236 13,240 90,412 35,037 2,208 37,190 1,942 3,465 2,700 45,298 15,705 2,430 3,644 3,424 19712' 188,332 76,422 24,265 14,523 86,164 30,341 3,535 39,751 1,948 3,686 3,202 48,587 16,629 2,590 3,709 3,847 Half year: 1969—July-Dec.. 90,833 38,797 5,771 481 44,087 15,179 982 17,057 131 1,270 1,282 19,740 8,241 1,263 1,496 1,809 1970—Jan-June. 102,910 38,619 20,465 12,759 46,325 19,858 1,226 20,134 1,811 2,196 1,416 25,558 7,464 1,168 2,148 1,615 July-Dec.. 87,562 37,445 5,569 565 42,449 12,744 1,467 17,768 133 1,348 1,576 20,826 8,152 1,317 1,537 2,005 1971—Jan.-JuneP 100,770 38,977 18,696 13,958 43,715 17,597 2,069 21,983 1,815 2,338 1,625 27,761 8,478 1,273 2,172 1,842 Month: 1970—Au g '•15,160 '•6,969 333 100 >-7,202 666 182 4,494 587 '•251 '•5,331 1,309 223 224 ••385 Sept 18,725 5,907 3,623 81 9,449 4,543 265 2,521 123 47 270 2,962 1,272 218 234 313 Oct 11,493 5,667 497 55 6,110 1,089 420 2,311 106 280 2,697 1,237 231 262 288 Nov 14,134 7,007 216 42 7,181 711 187 3,474 374 259 4,107 1,549 207 239 327 Dec 15,429 5,838 422 50 6,209 4,664 179 2,222 9 50 265 2,545 1,346 220 285 339 1971—Jan 15,773 6,339 4,280 40 10,579 1,085 558 2,178 113 165 264 2,720 1,195 199 269 286 Feb 15,130 7,246 654 1,407 6,493 683 310 4,835 141 721 248 5,944 1,505 175 280 361 Mar 13,205 6,605 1,392 4,631 3,366 3,887 363 3,472 152 77 288 3,990 1,443 226 329 328 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 11,,000055 258 6,366 1,459 204 379 313 JUNEF 22,449 6,622 3,684 506 9,801 6,705 236 3,311 115 6699 277 3,773 1,525 249 326 306 July 13,198 6,221 490 191 6,519 1,163 284 2,987 205 272 3,464 1,532 227 319 258 Aug 15,652 6,706 306 91 6,920 688 236 5,049 660 287 5,996 1,482 244 311 245 Budget outlays 4 Period Total t f i e N o d n e n a s - - a e l a I f n fa t i l r . s s S e p r a e a r - c c e h A t c u g u r r l e - i- so N u u r a r e r a c t - - l e s 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 u e s m d l n i o n - . p g . E p m d t o a i u a n w o n c d n e - a r - w H e a e l n a fa d lt r h e e V ra e n t- s In e t s e t r - g G e o e r v a n t l - . t I t g i n r o a a o t n c n r v s - a s t . - - 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 1971f 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 1972«6 229,232 77,512 4,032 3,151 5,804 4,243 10,937 4,495 8,808 76,749 10,644 19,687 4,970 -7,771 Half year: 1969—July-De c 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.-Jun e 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-Dec 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—Au g '•17,540 '•6,101 285 282 720 '•368 889 259 '•768 '•5,310 766 1,705 '•334 -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 JUNEP 20,115 8,080 86 246 84 559 1,247 395 1,182 7,568 874 1,678 397 -2,283 July 18,556 5,187 340 377 1,784 293 572 545 684 6,191 798 1,651 380 -240 Aug 19,582 5,595 308 291 963 432 1,643 291 661 6,385 892 1,668 533 386 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 • OCTOBER 1971 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p T g u r o o b t s l a i s c l Marketable Con- Nonmarketable i S ss p u e e c s ia 4 l debt 1 Total Total Bills C c e a r t t e if s i - Notes Bonds 2 b v i o b e n r le d t- s Total 3 b S o in n a g v d s - s & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 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—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 Aug. 414.6 325.8 249.7 89.6 108.2 51.9 2.3 73.8 54.0 87.0 Sept. 412.3 324.5 249.9 88.6 109.5 51.8 2.3 72.2 54.2 86.0 1 Includes non-interest-bearing debt (of which $626 million on Sept. 30, 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 savings 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 p n er d i o o d f p T g d u o r e o b t b s l a i t s c l ag G t U e a r o u n . n S v c s d . t i t e , s B F a . n R k . s Total m C b e a o r n m c k i - a s l M s b a u a v n t in u k g a s s l p I c n a 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 t a t s e l . Savi I n n g d s iv idu O a t ls h er n F a i o n t a i r t n o e e d n i r g - a n l! i O m n to t v i h r s e s c e s . r - 2 funds bonds securities 1939—Dec., 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec., 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 ' 9.3 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—Aug. 380.9 96.4 59.9 224.6 57.3 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 56.3 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 59.3 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 62.7 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 July. 405.3 104.9 65.8 234.6 60.5 2.9 6.7 11.6 21.9 53.4 24.8 >'35.4 '•17.3 Aug. 414.6 107.3 66.9 240.4 59.5 2.8 6.7 10.9 21.1 53.6 24.5 42.7 18.6 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, deposit NOTE.—Reported data for F.R. Banks and U.S. Govt, agencies and accounts. trust funds; Treasury estimates for other groups. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) 1/Vithin 1 yea r Type of holder and date Total y 1 ea -5 r s y 5 e - a 1 r 0 s 1 y 0 ea -2 rs 0 20 O y v e e a r rs Total Bills Other 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—July 31 247,649 115,014 88,918 26,096 89,077 24,502 8,434 10,622 Aug. 31 249,654 116,664 89,601 27,063 92,866 21,115 8,420 10,590 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—July 31 18,220 2,902 925 1,977 6,954 4,134 1,775 2,456 Aug. 31 18,338 3,114 892 2,222 7,465 3,528 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—July 31 65,841 35,441 28,252 7,189 23,601 5,907 323 570 Aug. 31 66,868 37,314 29,131 8,183 23,257 5,395 325 576 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,^86 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—July 31 163,588 76,671 59,741 16,930 58,522 14,461 6,336 7,596 Aug. 31 164,448 76,236 59,578 16,658 62,144 12,192 6,320 7,558 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—July 31 46,595 13,235 6,609 6,626 27,155 5,623 336 248 Aug. 31 45,835 11,923 5,469 6,454 28,860 4,460 343 249 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—July 31 2,918 474 242 232 1,240 514 326 364 Aug. 31 2,835 435 198 237 1,283 442 316 358 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 i;231 1971—July 31 5,764 767 445 322 1,629 924 1,324 1,121 Aug. 31 5,773 727 458 269 1,665 898 1,379 1,105 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—July 31 4,769 3,440 2,591 849 1,211 109 2 7 Aug. 31 4,079 2,739 2,416 323 1,219 105 6 11 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—July 31 3,257 667 443 224 1,678 501 191 219 Aug. 31 3,189 694 399 295 1,620 483 179 212 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—July 31 11,544 6,015 5,015 1,000 2,417 744 1,010 1,357 Aug. 31 10,609 5,362 4,280 1,082 2,306 694 962 1,285 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—July 31 88,741 52,073 44,396 7,677 23,192 6,046 3,147 4,280 Aug. 31 92,128 54,356 46,358 7,998 25,191 5,110 3 135 4,338 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 5,675 commercial banks, 488 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 742 insurance companies combined; (2) about 50 per cent by Govt, agencies and trust funds and added to "All others." Comparable data the 467 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 • OCTOBER 1971 DEALER TRANSACTIONS (Par value, in millions of dollars) 1 U.S. Goverimient securities 1 i By maturity By type of customer UU..SS.. GGoovvtt,, PPPeeerrriiioooddd aaggeennccyy Total Dealers ani d brokers sseeccuurriittiieess 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 i s a l other 1970—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 July 2,484 2,103 280 74 28 814 131 837 702 471 Aug 2,482 1,848 512 97 25 859 129 855 640 462 Week ending— 11997711——AAuugg.. 44 2,568 2,183 295 71 21 847 138 882 701 421 2,491 1,905 517 44 26 738 130 825 797 280 18 2,890 1,924 757 175 34 1,066 180 1,019 625 448 25 2,174 1,604 464 85 21 799 103 750 523 411 SSeepptt.. 11 2,387 1,828 396 137 26 897 103 786 601 697 88 2,132 1,479 314 302 37 712 99 758 563 445 15 1,791 1,261 286 218 27 605 141 635 410 342 22 2,022 1,662 199 144 17 789 72 675 487 557 29P 22,,221155 11,,777777 224444 nnoo 2233 110066 449988 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 Commerc ial banks UU..SS.. PPeerriioodd m t a A ie t l u s l r i- W y i e t 1 h a r i n y 1 ea -5 r s y 5 e - a 1 r 0 s y O e 1 v a 0 e r s r aa ss GG gg ee tt oo ee cc iiee nn uu vv ss cc rr tt ii ,, yy -- 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 n o s r 1 a - o A th l e l r 1970—Aug 4,474 3,389 454 604 27 819 1970—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 Oct........ 4,233 1,370 1,232 392 1,240 Nov 4,760 3,399 617 682 62 1,066 Nov 5,149 1,517 1,527 416 1,689 Dec 5,571 4,399 612 485 76 1,049 Dec 5,949 1,868 1,960 379 1,742 1971—Jan 5,634 4,626 525 403 80 966 1971—Jan 6,198 1,888 1,695 527 2,088 Feb 4,655 3,320 569 691 75 946 Feb 5,684 1,673 1,318 369 2,324 Mar 4,421 3,511 437 404 70 981 Mar 4,543 1,356 926 399 1,862 Apr 4,870 4,019 415 416 20 1,118 AApprr 5,700 1,759 1,415 724 1,802 May 2,646 2,115 189 331 11 818 MMaayy 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 July 3,011 3,018 -23 26 -11 771 July 3,516 1,151 391 721 1,254 Aug 2,897 2,473 344 70 11 698 Aug 3,071 894 390 821 967 Week ending— Week ending— 1971—July 7 3,086 3,033 9 58 -14 812 1971—July 7... 3,443 1,299 470 450 1,224 14 3,203 3,175 10 31 -14 826 14... 3,691 1,294 442 620 1,336 21 3,185 3,189 15 -10 -9 783 21. .. 3,704 1,080 384 840 1,401 28 2,774 2,906 -126 3 -10 717 28... 3,349 907 306 897 1,239 Aug. 4 2,537 2,470 -20 89 -2 679 Aug. 4. .. 3,234 997 307 881 1,050 11, 2,560 2,253 251 64 -7 587 11... 2,967 790 290 839 1,049 18 2,652 2,204 372 59 17 610 18... 2^647 875 206 753 813 25 3,152 2,536 513 75 28 715 25... 3,102 927 462 828 885 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
OCTOBER 1971 • GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, SEPTEMBER 30, 1971 (In millions of dollars) Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Issue and coupon rate Amount Treasury bills Treasury bills—Cont. Treasury notes—Cont. Treasury bonds—Cont. Oct. 7, 1971 3,903 Mar. 9, 1972 1,602 May 15, 1973 73^ 5,844 Sept. 15, 1967-72.. 21/i 1,951 Oct. 14, 1971 3.903 Mar. 16, 1972 1,601 Aug. 15, 1973 8H 1,839 Dec. 15, 1967-72.. 21/1 2,559 Oct. 21, 1971 3.703 Mar. 23, 1972 1,600 Oct. 1, 1973 IVi 30 Nov. 15, 1971 3% 1,081 Oct. 28, 1971 3,714 Mar. 30, 1972 1,600 Feb. 15, 1974 73^ 3,139 Feb. 15, 1972 4 980 Oct. 31, 1971 1,701 Mar. 31, 1972 1.701 Apr. 1, 1974 UA 34 Aug. 15, 1972 4 2,579 Nov. 4, 1971 3,701 Apr. 30, 1972 1.702 May 15, 1974 4,505 Aug. 15, 1973 4 3,894 Nov. 11, 1971 3.700 May 31, 1972 1,701 Aug. 15, 1974 5% 10,284 Nov. 15, 1973 4% 4,343 Nov. 18, 1971 3.704 June 30,1972 1,701 Oct. 1, 1974 UA 42 Feb. 15, 1974 41/8 3,126 Nov. 26, 1971 3.701 July 31, 1972 1,202 Nov. 15, 1974 534 7,212 May 15, 1974 41/4 3,578 Nov. 30, 1971 1.702 Aug. 31, 1972 1,200 Feb. 15, 1975 53^ 5,148 Nov. 15, 1974 3% 2,238 Dec. 2, 1971 3,695 Sept. 30, 1972 1,201 Apr. 1, 1975 UA 8 May 15, 1975-85.. 414 1,211 Dec. 9, 1971 3,704 May 15, 1975 6 6,760 June 15, 1978-83.. 3 1,531 Dec. 16, 1971 3,700 Aug. 15, 1975 5H 7,680 Feb. 15, 1980 4 2,590 Dec. 23, 1971 3.904 Treasury notes Nov. 15, 1975 7 3,114 Nov. 15, 1980 3Vi 1,903 Dec. 30, 1971 3,902 Oct. 1, 1971 UA 72 Oct. 1, 1975 UA 30 Aug. 15, 1981 7 806 Dec. 31, 1971 1,702 Nov. 15, 1971 53/8 967 Feb. 15, 1976 6V4 3,739 May 15, 1985 31/4 1,048 Jan. 6, 1972 1,592 Nov. 15, 1971 73/4 5,863 Apr. 1, 1976 UA 13 Aug. 15, 1987-92.. 4 3,799 Jan. 13, 1972 1,601 Feb. 15, 1972 43^ 800 May 15, 1976 2,697 Feb. 15, 1988-93..4 246 Jan. 20, 1972 1,601 Feb. 15, 1972 2,690 Aug. 15, 1976 7iA 4,194 May 15, 1989-94. .41/8 1,548 Jan. 27, 1972 1,601 Apr. 1, 1972 U/i 34 Nov. 15, 1976 1,283 Feb. 15, 1990 3Vi 4,614 Jan. 31, 1972 1.700 May 15, 1972 43^ 5,310 Feb. 15, 1977 8 5,163 Feb. 15, 1995 3 1,150 Feb. 3, 1972 1,601 May 15, 1972 63^ 2,037 Aug. 15, 1977 734 2,264 Nov. 15, 1998 3^ 3,811 Feb. 10, 1972 1,600 Aug. 15, 1972 5 3,452 Feb. 15, 1978 6V4 8,387 Feb. 17, 1972 1,600 Oct. 1, 1972 11/2 33 Feb. 24, 1972 1,600 Nov. 15, 1972 6 2,285 Convertible bonds Feb. 29, 1972 1.701 Feb. 15, 1973 6Vi 2,514 Treasury bonds Investment Series B Mar. 2, 1972 1,600 Apr. 1, 1973 IVi 34 June 15, 1967-72..21^ ,231 Apr. I, 1975-80.. 23^ 2,337 t Tax-anticipation series. NOTE.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv- Special ered 3 Total G o e b a n l l e i- r- R n e u v e e - HAAi G l U o o a .S v n t . s , State di S a s t n t a r d t i , c t Other2 Total c E a d ti u o - n b R r a i o d n a g d d e s s i U tie ti s l- 4 H i o ng u s s - V a e a n t i e d s r ' - O p t u h r e - r gations auth. 196 3 10,538 5,855 4,180 254 249 1,620 3,636 5,281 10,496 9,151 3,029 812 2,344 598 2,396 196 4 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 196 5 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 196 6 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 196 7 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 196 8 16,596 9.269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 196 9 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1,432 1,734 543 4,884 197 0 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1970—Aug. . 1,359 873 481 5 331 518 509 1,358 404 136 196 4 617 Sept.. 1,758 1,207 541 9 534 536 688 1,756 491 137 243 21 864 Oct.. . 1,924 1,184 695 13 290 531 1,102 1,923 532 123 380 68 821 Nov.. 1,748 892 753 5 247 765 736 1,743 523 63 364 12 683 Dec... 2,190 1.270 914 6 571 826 793 2,176 425 327 623 121 681 1971—Jan.. . 2,705 1,613 969 121 2 577 1,136 991 2,694 509 390 428 373 993 Feb... 1,839 1,225 607 7 585 616 638 1,823 518 133 315 123 735 Mar.. 2,144 1,311 831 1 417 648 1,078 2,130 565 183 627 28 728 1,907 1,349 553 5 440 501 968 1,864 506 66 469 19 804 May.'! 2,135 1,091 837 197 10 486 1,054 585 2,127 610 447 429 214 424 June.. 2,008 1,309 691 8 778 364 866 2,001 403 393 680 14 511 J A u u l g y . .. . 1 1 , , 8 9 7 2 1 8 1 1 , , 1 3 2 0 7 7 4 7 4 3 5 7 5 4 4 5 7 9 1 "m 7 5 2 6 1 5 6 8 8 9 8 5 1 1 , , 8 8 6 81 2 2 3 9 4 0 6 1 1 5 2 8 0 2 3 1 7 9 0 2 1 1 5 4 9 1,0 8 3 3 7 1 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 • OCTOBER 1971 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues ^ Noncorporate Corporate PPPeeerrriiioooddd Bonds Stock TTToootttaaalll GG UU oo .. vv SS tt .. .. 22 aagg GG UU ee oo nn ..SS vv cc tt .. yy ,, 33 aa (( nn UU SS dd .. tt SS aa lloo tt .. ee )) cc 44 aa ll OOtthheerrss TToottaall 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—July 5,896 405 1,107 1,310 306 2,768 2,151 1,831 320 88 529 Aug 8,155 3,573 915 1,318 76 2,273 1,935 1,731 205 92 246 Sept 8,199 1,428 1,600 1,650 4 3,518 2,814 2,425 389 176 528 Oct 8,353 412 2,169 1,882 113 3,777 2,694 2,390 303 180 903 Nov 9,040 2,414 750 1,684 10 4,182 3,283 3,001 283 124 774 Dec 7,651 401 924 2,245 100 3,980 3,270 2,436 834 168 541 1971—Jan 7,438 436 1,050 2,614 223 3,115 2,627 2,033 594 76 413 Feb 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 7,244 467 1 1,859 177 4,042 2,623 2,116 507 537 882 May 6,969 466 1,000 2,114 118 3,271 2,638 2,148 491 54 579 June 10,994 2,779 1,812 1,988 40 4,375 3,042 2,283 760 104 1,228 July 9,230 1,153 2,046 1,951 17 4,064 1,868 1,331 537 1,527 669 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 a s n d Transportation Public utility Communication a R nd e al f in es a t n a c t i e a l Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 196 3 3,202 313 676 150 948 9 2,259 418 953 152 2,818 313 196 4 2,819 228 902 220 944 38- 2,139 620 669 1,520 3,391 466 196 5 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 196 6 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 196 7 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 196 8 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 196 9 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1,671 197 0 9,191 1,322 1,949 2,545 2,188 92 8,016 3,001 5,059 83 3,861 1,636 1970—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 58 725 230 277 822 146 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.. 819 316 198 243 268 67 607 660 247 26 484 107 May. 631 158 143 131 250 89 447 141 403 2 763 113 June. 1,031 175 497 290 182 115 616 439 204 14 513 300 July. 329 200 144 188 137 62 509 212 232 1,390 517 143 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
OCTOBER 1971 • SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers i 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—11. 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 197l_lr. 11,241 2,015 9,226 8,765 1,776 6,989 2,476 239 2,237 N. 13,294 2,979 10,315 8,974 2,681 6,294 4,320 299 4,021 Type of issuer Manu- Commercial Transpor- Public Communi- Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B o n n o d 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 196 6 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 -90 196 7 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 196 8 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 196 9 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 197 0 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1970—11. 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_lr. 2,076 520 201 416 271 33 1,897 948 1,194 66 1,349 255 II. 2,296 954 446 768 461 374 1,347 1,261 919 38 825 626 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 Sales 1 Re t d io e n m s p- s N al e e t s Total 2 po C s a it s io h n 3 Other Sales 1 Re t d io e n m s p- s N al e e t s Total 2 po C s a it s io h n 3 Other 1958, 1,620 511 1,109 13,242 634 12,608 1970—Aug.. 311 167 144 42,452 4,794 37,658 1959, 2,280 786 1,494 15,818 860 14,958 Sept.. 357 218 139 44,353 4,593 39,760 1960, 2,097 842 1,255 17,026 973 16,053 Oct.. 420 243 177 43,567 4,377 39,190 Nov.. 343 215 128 45,223 4,126 41,097 1961 2,951 1,160 1,791 22,789 980 21,809 Dec.. 467 307 160 47,618 3,649 43,969 1962 2.699 1,123 1,576 21,271 1,315 19,956 1963 2,460 1,504 952 25,214 1,341 23,873 1971—Jan.. 487 242 245 50,251 3,663 46,588 Feb.. 349 322 27 51,300 3,600 47,700 1964 3,404 1,875 1,528 29,116 1,329 27,787 Mar.. 468 425 43 53,618 3,328 50,290 1965 4,359 1,962 2,395 35,220 1.803 33,417 Apr.. 547 394 153 55,883 3,046 52,837 1966 4,671 2,005 2,665 34,829 2,971 31,858 May. 307 428 -121 53,610 2,607 51,003 June. 434 467 -33 53,560 2,830 50,730 1967 4,670 2,745 1,927 44,701 2,566 42,135 July.. 371 444 -73 51,424 2,856 48,568 1968 6,820 3,841 2,979 52,677 3,187 49,490 Aug.. 432 394 38 53,798 3,016 50,782 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 ether 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 • OCTOBER 1971 SALES, PROFITS. AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 11996655 11996666 11996677 11996688 11996699 I II III IV I II III IV Manufacturing Total (177 corps.): Sales 177,237 195,738 201,399 225,740 243,449 53,633 57,732 53,987 60,388 57,613 61,392 61,061 63,383 Profits before taxes 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends 6,527 6,920 6,989 7,271 7.757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.): 2 Sales 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends 2,527 2,729 3,027 3.082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.): 3 Sales 112,341 122,094 123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 Profits before taxes 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 Profits after taxes 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 Dividends 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales 16,427 19,038 20,134 22,109 24,593 5,184 5,389 5,737 5,799 5,714 5,923 6,631 6,325 Profits before taxes 1,710 1,916 1,967 2,227 2,425 498 563 590 576 534 581 666 644 Profits after taxes 896 1,008 1,041 1,093 1,171 255 260 285 293 261 275 314 321 Dividends 509 564 583 616 661 150 155 155 156 162 165 164 170 Chemical and allied products (20 corps.): Sales 18,158 20,007 20,561 22,808 24.494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 6,183 Profits before taxes 2,891 3,073 2,731 3,117 3,258 760 807 806 744 844 875 818 721 Profits after taxes 1,630 1,737 1,579 1,618 1,773 390 419 412 398 448 473 441 411 Dividends 926 948 960 1,002 1,031 236 236 243 287 252 251 254 274 Petroleum refining (16 corps.): Sales 17,828 20,887 23,258 24,218 25,586 5,890 6,013 6,100 6,214 6,107 6,610 6,264 6,605 Profits before taxes 1,962 2,681 3,004 2,866 2,941 767 692 740 667 726 728 750 737 Profits after taxes 1,541 1,898 2,038 2,206 2,224 592 520 561 534 562 558 554 550 Dividends 737 817 1,079 1,039 1,123 253 255 258 273 282 273 282 286 Primary metals and products (34 corps.): Sales 26,548 28,558 26,532 30,171 33,674 7,150 8,427 7,461 7,133 7,671 8,612 8,448 8,943 Profits before taxes 2,931 3,277 2,487 2,921 3,052 669 915 601 735 691 828 715 818 Profits after taxes 1,689 1,903 1,506 1,750 1,912 376 550 343 482 431 504 435 542 Dividends 818 924 892 952 987 224 230 233 264 242 245 247 253 Machinery (24 corps.): Sales 25,364 29,512 32,721 35,660 38,719 8,371 8,864 8,907 9,517 8,957 9,757 10,542 9,463 Profits before taxes 3,107 3,612 3,482 4,134 4,377 936 1,008 1,112 1,079 1,071 1,167 1,141 998 Profits after taxes 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1,663 1,542 652 1,411 Prdfits 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
OCTOBER 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 In x m e - s e P t a r a f o x t f e e i r s ts d C d e a i n v s d i h - s t U r p i r n b o u d fi t i t s e s - d co c a n a t l s l i p o o u i n w t m a - l p - Quarter P b t r e a o f x o f e i r t s e s c ta o In x m e - s e P t a r a f o x t f e e i r t s s d C d e a i n v s d i h - s t U p ri r n b o d u f i i t t s e s - d co c a n t a l i s l o p o u n i w t m a - l p ances! ances 1 1963 59.4 26.3 33.1 16.5 16.6 31.8 1969—IV... 80.0 • 37.7 42.3 24.9 17.4 53.2 1964 66.8 28.3 38.4 17.8 20.6 33.9 1965 77.8 31.3 46.5 19.8 26.7 36.4 1970—1.... 75.6 34.1 41.5 25.0 16.6 54.4 1966 84.2 34.3 49.9 20.8 29.1 39.5 II... 75.8 34.5 41.3 24.9 16.4 55.7 . III... 78.5 35.6 42.9 25.2 17.7 56.7 1967 79.8 33.2 46.6 21.4 25.3 43.0 IV... 71.6 32.3 39.2 25.0 14.3 58.0 1968 87.6 39.9 47.8 23.6 24.2 46.8 1969 84.2 39.7 44.5 24.4 20.0 51.3 1971—1 79.1 36.2 42.9 25.6 17.3 62.6 1970 75.4 34.1 41.2 25.0 16.2 56.2 II. .. 83.3 37.4 46.0 25.4 20.5 64.0 1 Includes depreciation, capital outlays charged to current accounts, and NOTE.—Dept. of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities NNeett Notes and accts. Notes and accts. EEnndd ooff ppeerriioodd wwoorrkkiinngg UU..SS.. receivable payable AAccccrruueedd ccaappiittaall TToottaall CCaasshh ss GG ee oo ccuu vv rr tt ii ,, -- II tt nn oo vv rr ee iiee nn ss -- OOtthheerr TToottaall FF iinn ee cc dd oo ee mm rraa ee ll OOtthheerr ttiieess G U o . v S t . . i Other G U o . v S t . . i Other ttaaxxeess 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 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 6.1 240.3 18.6 91.4 II 226.3 582.6 58.6 10.3 3.9 273.2 197.4 39.3 356.3 5.3 241.2 16.8 93.0 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 PPeerriioodd TToottaall Durable d N ur o a n b - le MMiinniinngg R ro a a i d l- Air Other Electric and G a o s t her nn CC ii oo ccaa mm ttii mm oonn uu ss -- OOtthheerr 11 T A (S o . . R t A a . . ) l 1964 46.97 9.28 10.07 1.34 1.66 1.02 1.50 3.97 1.51 4.61 12.02 1965 54.42 11.50 11.94 1.46 1.99 1.22 1.68 4.43 1.70 5.30 13.19 1966 63.51 14.96 14.14 1.62 2.37 1.74 1.64 5.38 2.05 6.02 14.48 1967 65.47 14.06 14.45 1.65 1.86 2.29 1.48 6.75 2.00 6.34 14.59 1968 67.76 14.12 14.25 1.63 1.45 2.56 1.59 7.66 2.54 6.83 15.14 1969 75.56 15.96 15.72 1.86 1.86 2.51 1.68 8.94 2.67 8.30 16.05 1970 79.71 15.80 16.15 1.89 1.78 3.03 1.23 10.65 2.49 10.10 16.59 19712 81.44 14.31 15.80 2.08 1.64 1.84 1.32 13.12 2.41 10.99 17.94 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 II 20.60 3.52 4.03 .54 .47 .60 .36 3.20 .63 2.81 4.44 81.61 IIP 20.55 3.60 3.86 .52 .43 .37 .34 3.38 .73 7.33 82.38 IV2 22.61 4.08 4.34 .54 .40 .54 .34 3.83 .64 7.90 82.42 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 • OCTOBER 1971 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s 2 1- to 4-family houses 4 com M m u e l r t c if i a al m p il r y o p a e n r d ti es 5 Mo ty rt p g e a 6 g e EEE ppp nnn eeerrr ddd iii ooo ooo ddd fff hh AA ee oo rr ll ll ss dd ll -- ttuu FF ii tt nn ii cc ii nn oo ss iiaa aa nn tt ll ii nn ss -- -- 11 a U c g i . e e S n s . - v o I i a t d n h n u d e d a i r - l s s hh AA ee oo rr ll ll ss dd ll -- ttuu FF ii tt nn ii cc ii nn oo ss iiaa aa nn tt ll ii nn ss -- -- 11 OO hh ee oo tt rr hh ss lldd ee 33 -- rr hh AA ee oo rr ll ll ss dd ll -- Total tu F i t n i i n o s a t n i n s - . 1 O h e o th r 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 t o h r l s d e r - F w u H V n ri d A A tt e - — e r n - t C v io e o n n n a - - l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 1964 300.1 241.0 11.4 47.7 18.9 7.0 11.9 281.2 197.6 170.3 27.3 83.6 63.7 19.9 77.2 204.0 1965 325.8 264.6 12.4 48.7 21.2 7.8 13.4 304.6 212.9 184.3 28.7 91.6 72.5 19.1 81.2 223.4 1966 347.4 280.8 15.8 50.9 23.3 8.4 14.9 324.1 223.6 192.1 31.5 100.5 80.2 20.3 84.1 240.0 1967 370.2 298.8 18.4 53.0 25.5 9.1 16.3 344.8 236.1 201.8 34.2 108.7 87.9 20.9 88.2 256.6 1968 397.5 319.9 21.7 55.8 27.5 9.7 17.8 370.0 251.2 213.1 38.1 118.7 97.1 21.6 92.8 277.2 1969—L... 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 25.7 109.1 310.9 458.9 362.1 33.6 63.3 31.8 10.1 21.7 427.2 283.6 234.5 49.4 143.6 117.5 26.1 IIII...... 447711..22 337722..33 3355..22 6633..77 3311..99 99..77 2222..22 443399..33 229900..88 224400..77 4499..55 114488..55 112211..99 2266..66 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, PHA, Farmers Home Admin., and in earlier years, RFC, HOLC, and FFMC. They also include U.S. NOTE.—Based on data from Federal Deposit Insurance Corp., Federal sponsored agencies—new FNMA and Federal land banks. Other agencies Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul- (amounts small or current separate data not readily available) included ture and Commerce, Federal National Mortgage Assn., Federal Housing with "individuals and others." Admin., Public Housing Admin., Veterans Admin., and Comptroller of 3 Derived figures; includes debt held by Federal land banks and farm the Currency. debt held by Farmers Home Admin. Figures for first three quarters of each year are F.R. estimates. 4 For multifamily and total residential properties, see p. A-54. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings i Mutual savings bank holdings 2 Residential Residential End of period Other Other Total non- Farm Total non- Farm FHA- VA- Con- farm FHA- VA- Con- farm Total in- guar- ven- Total in- guar- vensured 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 24 196 4 43,976 28,933 7,315 2.742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 196 5 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14.897 4,469 52 196 6 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 196 7 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 196 8 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1968—III. 63,779 40,251 7,768 2,657 29,826 19,771 3.757 52,496 46,051 15,367 11,945 18,739 6,329 116 IV. 65,696 41,433 7,926 2,708 30,800 20,505 3.758 53,456 46,748 15,569 12,033 19,146 6,592 117 1969—1.. 67,146 42,302 7,953 2,711 31,638 20,950 3,894 54,178 47,305 15,678 12,097 19,530 6,756 117 II. 69,079 43,532 8,060 2.743 32,729 21,459 4,088 54,844 47,818 15,769 12,151 19.898 6,908 117 III. 70,336 44,331 8,065 2,793 33,470 21,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV. 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1.. 70,854 44,568 7,1 2,496 34,184 22,248 4,038 56,394 48,874 15,865 12,105 20,904 7,413 107 IIP 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 III 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^ 74,424 46,343 23,595 4,486 58,680 50,553 8,014 113 II. 76,639 44,454 24,477 3,999 59,643 51,362 8,174 107 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
OCTOBER 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 4,466 766 196 2 7,478 6,859 1,355 469 5,035 619 46,902 43,502 10,176 6,395 26,931 3,400 196 3 9,172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 196 4 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 196 5 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 196 6 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 196 7 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 196 8 7,925 7,153 '•755 346 '•6,052 nil 69,973 64,172 ^2,469 5,954 '•45,749 5,801 196 9 7,531 6,943 663 220 6,108 537 72,027 66,254 12,271 5,701 48,282 5,773 1970—June. 549 522 25 5 492 27 73,165 67,498 11,569 5,556 50,373 5,667 July. 551 531 50 5 476 20 73,352 67,687 11,561 5,528 50,598 5,665 Aug., 472 458 31 8 419 14 73,427 67,767 11,526 5,499 50,742 5,660 Sept. 520 489 31 6 452 31 73,540 67,875 11,486 5,467 50,922 5,665 Oct.. 555 527 28 5 494 28 73,728 68,058 11,453 5,442 51,163 5,670 Nov. 553 533 37 6 490 20 73,848 68,189 11,436 5,416 51,337 5,659 Dec.. 1,143 1,099 44 1,047 44 74,345 68,693 11,325 5,390 51,978 5,652 1971—Jan.. 448 423 17 399 25 74,370 68,779 11,383 5,368 52,028 5,591 Feb.. 449 425 17 407 24 74,437 68,871 11,338 5,346 52,187 5,566 Mar., 623 579 33 541 44 74,516 68,973 11,302 5,316 52,355 5,543 Apr.. 578 533 18 507 45 74,536 68,993 11,237 5,284 52,472 5,543 May. 491 442 24 410 49 74,552 68,425 11,186 5,254 51,985 5,554 June. 537 494 29 456 42 74,535 68,973 11,123 5,219 52,631 5,562 1 Includes mortgage loans secured by land on which oil drilling or the end-of-Dec. figures may differ from end-of-year figures because (1) extracting operations are in process. monthly figures represent book value of ledger assets, whereas year-end figures represent annual statement asset values, and (2) data for year-end NOTE.—Institute of Life Insurance data. For loans acquired, the adjustments are more complete. Beginning 1970 monthly and year-earlier monthly figures may not add to annual totals; and for loans outstanding data are on a statement balance basis. MORTGAGE ACTIVITY OF SAVINGS AND FEDERAL HOME LOAN BANKS LOAN ASSOCIATIONS (In millions of dollars) (In millions of dollars) Advances outstanding Loans made Loans outstanding (end of period) (end of period) PPeerriioodd vvaa AA nn dd cc -- eess RR mm ee ee pp nn aa ttss yy -- MM dd ee ee mm ppoo bb ss ee iitt rr ss ss '' 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 1 con- pur- Total 2 in- guar- venstruc- chase sured anteed tional tion 1945. 278 213 195 176 19 46 5,601 4,296 4,784 2,863 1,921 1,151 1945 1,913 181 1,358 5,376 1 1 9 9 6 6 4 5 . 5 5 , , 5 0 6 0 5 7 4 5 , , 3 0 3 2 5 5 5 5 , , 3 9 2 9 5 7 2 3 , , 8 0 4 7 6 4 2 2, , 9 4 2 7 3 9 1 1 , , 0 1 4 9 3 9 196 3 25,173 7,185 10,055 90,944 4,696 6,960 79,288 3,804 2,866 6,935 5,006 1,929 1,036 1 1 1 9 9 9 6 6 6 6 4 5 2 2 1 4 4 6 , , , 9 1 9 1 9 2 3 2 4 6 3 6 , , , 6 6 01 5 3 3 3 8 1 1 7 0 0 , , , 8 5 8 2 3 3 8 8 0 1 1 1 1 0 1 4 1 0 , , , 3 4 3 3 2 0 3 7 6 5 4 5 , , , 1 2 8 4 6 9 5 9 4 6 6 6 , , , 6 1 3 8 5 9 3 7 8 1 9 8 0 8 9 3 , , , 7 7 0 6 0 5 3 1 6 1 19 9 6 6 7 8 . . 2 1 , , 7 5 3 2 4 7 4 1 , , 0 8 7 6 6 1 4 5 , , 3 2 8 5 6 9 4 3, , 9 8 8 6 5 7 4 3 0 9 1 2 1 1 , , 3 4 8 3 2 2 1969. 5,531 1,500 9,289 8,434 855 1,041 196 7 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 2,331 196 8 21,983 4,916 11,215 130,802 6,658 7,012 117,132 196 9 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1970- 179 106 10,446 3,967 6,478 1,238 197 0 21,387 4,150 10,239 150,562 10,195 8,507 131,860 O Se c p t t 2 1 0 3 4 4 1 1 2 1 5 9 1 1 0 0 , , 5 5 2 3 4 9 3 3 , , 2 4 6 7 5 7 7 7 , , 0 2 4 7 7 4 1 1 , , 3 4 3 9 9 6 1970—July.. 2,080 393 1,071 143,103 8,579 7,862 '•127,403 NOV 112 126 10,524 3,156 7,368 1,978 Aug.. 2,111 369 1,147 145,296 9,011 8,050 '•128,234 Dec 224 134 10,615 3,081 7,534 2,331 Sept.. 2,183 388 1,100 146,418 9,224 8,115 129,079 Oct... 2,127 406 1,032 147,570 9,441 8,230 129,903 1971--Jan 43 331 10,326 2,924 7,403 2,750 D NO ec V . . . . 2 1 , , 4 9 7 7 4 2 4 3 1 5 6 5 9 9 6 1 8 9 1 1 4 5 8 0 , , 8 5 9 6 6 0 1 9 0 , , 2 1 2 9 6 5 8 8 , , 5 3 0 3 7 6 1 1 3 3 0 1 , , 7 8 9 6 4 0 Feb 7 2 1 7 1,4 4 9 2 2 8 9 8 , , 9 2 2 6 6 9 2 2 , , 6 2 9 2 7 6 6 7 , , 0 2 4 3 3 0 2 3 , , 8 0 2 9 8 3 May 151 1,151 7,267 2,322 4,945 2,376 1971—Jan... 1,667 307 752 151,503 10,473 8,673 132,357 238 264 7,241 2,397 4,844 2,111 Feb.. 1,887 346 818 152,665 10,810 8,766 133,089 July 309 213 7,338 2,544 4,794 >•1,696 Mar.. 2,795 521 1,143 154,430 12,123 8,922 134,320 358 183 7,514 2,812 4,702 1,528 3,168 597 1,306 156,574 11,560 9,128 135,886 May! 3,438 620 1,451 158,747 11,885 9,299 137,563 June. 4,301 718 2,109 161,440 12,273 9,580 139,587 1 Secured or unsecured loans maturing in 1 year or less. July.. 4,023 649 2,039 163,951 12,592 9,784 141,575 2 Secured loans, amortized quarterly, having maturities of more than 1 year but not more than 10 years. 1 Includes loans for repairs, additions and alterations, refinancing, etc. NOTE.—Federal Home Loan Bank Board data. 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 • OCTOBER 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 Multifamilyi Governmentunderwritten CCoonn-- E pe n r d i o o d f Total F i i n c n s i a a t l n i - - h O o t ld h e e r r s Total F i i n c n s i a a t l i n - - h O o t ld h e e r r s EEnndd ooff ppeerriioodd Total Total FH in A - - g V u A a - r- ttii vv oo ee nn nn aa -- ll tutions tutions sured anteed i 1 1 1 9 9 9 6 4 4 5 1 3 2 2 2 1 4 4 1 . . . 3 2 2 1 1 1 7 5 4 6 . . . 7 9 7 3 9 8 4 . . . 4 6 5 2 5 5 9 . . . 9 7 0 2 3 3 0 . . . 5 6 7 2 2 8. . . 3 2 2 1 19 9 6 6 3 4 1 1 1 8 9 8 2 7 . . . 6 2 6 6 6 4 5 9 . . . 3 9 2 3 3 4 8 5 . . . 1 3 0 3 30 0 . . . 9 2 9 1 1 1 1 2 4 6 8 . . . 3 3 3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 1965 212.9 73.1 42.0 31.1 139.8 196 5 250.1 213.2 36.9 37.2 29.0 8.2 1966 223.6 76.1 44.8 31.3 147.6 1 19 9 6 6 6 7 f 2 2 6 8 4 0 . . 0 0 2 2 2 3 3 6 . . 7 6 4 4 0 3 . . 3 4 4 4 0 3 . . 3 9 3 3 1 4 . . 5 7 9 8 . . 2 8 1968P 2 2 3 5 6 1 . . 1 2 7 8 9 3 . . 9 8 4 5 7 0 . . 4 6 3 3 2 3 . . 5 2 1 1 5 6 6 7 . . 1 4 1968^ 298.6 250.8 47.8 47.3 37.7 9.6 1969—1 254.8 85.3 51.4 33.9 169.5 1969—II I 314.1 262.7 51.4 50.6 40.2 10.4 259.5 87.1 52.2 34.9 172.3 IV 319.0 265.0 54.0 52.2 41.3 10.9 Ill 263.5 88.8 53.4 35.4 174.6 IV. 266.8 90.1 54.5 35.6 176.9 1970— 1 321.7 265.9 55.8 53.2 42.9 10.3 II 326.3 268.9 57.4 54.5 43.2 11.3 1970—1 268.5 91.6 55.6 36.0 177.1 III''... 332.2 272.8 59.4 56.1 44.3 11.8 271.7 92.1 56.1 36.0 179.9 338.2 277.2 61.0 58.0 45.8 12.2 276.0 95.1 58.1 37.0 180.7 IV 280.2 97.2 59.9 37.3 182.5 1971— I I I ' - 3 3 4 5 3 3 . . 3 1 2 2 8 9 1 0 . . 6 1 6 6 1 3 . . 7 0 5 62 9 . . 3 7 4 49 7 . . 4 2 1 1 2 2 . . 5 9 1971_ I l I r 22 2 99 8 00 3 .. . 88 6 1 Structures of five or more units. 1 Includes outstanding amount of VA vendee accounts held by private NOTE.—Based on data from same source as for "Mortgage Debt Out- investors under repurchase agreement. standing" table (second preceding page). NOTE.—For total debt outstanding, figures are FHLBB and F.R. estimates. For conventional, figures are derived. Based on data from FHLBB, Federal Housing Admin., and Veterans Admin. GOVERNMENT-UNDERWRITTEN RESIDENTIAL DELINQUENCY RATES ON HOME MORTGAGES LOANS MADE (Per 100 mortgages held or serviced) (In millions of dollars) Loans not in foreclosure FHA-insured VA-guaranteed but delinquent for— LLooaannss iinn ffoorree-- EEnndd ooff ppeerriioodd cclloossuurree 90 days PPPeeerrriiioooddd Mortgages PPrroopp-- Mortgages Total 30 days 60 days or more PPrroo-- eerrttyy Total h N o e m w e s h is o E t m i x n - e g s jjeeccttss!! mm pprr ii ee mm oo nn vv -- ttss ee -- 22 TToottaall 33 h N om ew e s h is o E t m i x n - e g s 1 19 9 6 6 3 4 3 3 . . 2 3 1 0 2 2 . . 3 3 5 2 . . 5 6 5 0 . .3 3 8 1 . . 3 3 4 8 1965 3.29 2.40 .55 .34 .40 1 1 9 9 4 6 5 4 8,1 6 3 6 0 5 1,6 2 0 5 8 7 4,9 2 6 1 5 7 8 2 9 0 5 6 1 6 7 3 1 2,8 1 4 9 6 2 1,023 1,821 1 1 9 9 6 6 6 8 3 3 3 . . . 4 1 4 7 7 0 2 2 2 . . . 5 6 4 4 6 3 . . . 5 5 5 4 4 1 . . . 2 3 2 7 2 3 . . . 3 3 2 6 2 6 1965 8,689 1,705 5,760 591 634 2,652 876 1,774 3.22 2.43 .52 .27 .27 1 1 1 1 9 9 9 9 6 6 6 6 8 7 9 6 7 7 9 8 , , , , 1 3 2 1 7 5 2 2 5 0 0 9 1 1 1 1 , , , , 3 7 5 5 6 2 5 7 9 9 1 2 5 4 4 4 . , , , 5 5 3 9 7 1 6 2 0 6 6 4 1 1 , , 1 3 5 6 2 1 8 4 3 6 3 2 6 6 6 6 2 4 9 5 3 1 3 6 4 2 3 3 , , , , 4 6 0 7 0 0 7 7 5 0 2 4 1 1 1 , , , 1 4 4 9 4 9 3 8 3 3 0 0 2 2 2 1 , , , , 3 2 5 6 4 5 1 7 3 9 8 9 I I I I V l l 2 3 3 3 . . . . 8 1 4 0 5 5 7 4 2 2 2 2 . . . . 1 6 3 1 7 6 6 4 . . . . 4 5 5 5 5 6 2 4 . . . . 3 2 2 2 1 7 7 6 . . . . 3 3 3 3 8 1 2 4 1970 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 2.84 2.11 .49 .24 .32 1970—July.. 1,087 230 475 319 62 298 109 189 2.89 2.23 .44 .22 .28 Aug.. 1,030 247 504 228 49 306 107 199 III. . .. 2.93 2.23 .48 .22 .26 Sept.. 1,099 268 521 247 63 326 110 216 IV 3.17 2.43 .51 .23 .26 Oct... 1,218 304 564 292 57 341 117 224 Nov.. 1,063 273 497 248 45 318 106 212 2.77 2.04 .49 .24 .26 Dec.. 1,351 280 472 549 50 316 109 207 II 2.68 2.06 .41 .21 .25 1971—Jan... r999 295 ^'476 187 41 297 102 195 I I l V l . . . . . . . . 2 3 . . 9 2 1 2 2 2 . . 1 4 8 3 . . 4 5 7 2 . . 2 2 6 7 . . 2 2 5 7 Feb.. '•951 284 P450 185 32 256 90 166 Mar.. 1,097 318 P531 202 46 303 98 205 1970—1 2.96 2.14 .52 .30 .31 Apr.. 1,136 293 H67 330 46 350 98 252 2.83 2.10 .45 .28 .31 May. 1,203 290 504 354 55 417 111 306 Ill 3.10 2.26 .53 .31 .25 June. 1,372 322 629 399 21 3.64 2.67 .61 .36 .33 JJuullyy.... 11,,334400 333388 664466 330044 5533 1971—1 3.21 2.26 .56 .39 .40 1 Monthly figures do not reflect; mortgage amendments included in annual 3.27 2.36 .53 .38 .38 totals. 2 Not ordinarily secured by mortgages. 3 Includes a small amount of alteration and repair loans, not shown separ- NOTE.—Mortgage Bankers Association of America data from ately; only such loans in amounts of more than $1,000 need be secured. reports on 1- to 4-family FHA-insured, VA-guaranteed, and conventional mortgages held by more than 400 respondents, including mortgage bankers (chiefly), conmiercial banks, savings banks, and NOTE.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, savings and loan associations. gross amounts of loans closed. Figures do not take into account principal repayments on previously insured or guaranteed loans. For VA-guaranteed loans, amounts by type are derived from data on number and average amount of loans closed. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 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 period) End of period) period period 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 e a r r i i d o n e d g st O i a n u n g t d - 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 e a r r i i d o n e d g st O i a n u n g t d - 196 7 3,348 2,756 592 860 ,045 1,171 196 7 5,522 4,048 1,474 1,400 12 1,736 501 196 8 4,220 3,569 651 1,089 867 1,266 196 8 7,167 5,121 2,046 1,944 2,697 1,287 196 9 4,820 4,220 600 827 615 1,130 196 9 10,950 7,680 3,270 4,121 6,630 3,539 197 0 5,184 4,634 550 621 897 738 197 0 15,502 11,071 4,431 5,078 8,047 5,203 1970-July.. 5,070 4,499 571 55 172 966 1970-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 4 139 5,092 1971-Jan... 5,188 4,641 546 35 27 705 Feb.. 15,452 11,061 4,391 60 72 80 4.865 Feb.. 5,213 4,670 543 38 21 682 Mar.. 15,420 11,012 4,408 76 46 312 4,318 Mar.. 5,241 4,703 538 56 100 707 Apr.. 15,308 10,933 4,375 57 104 457 4,318 Apr.. 5,244 4,710 534 39 120 786 May. 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 June. 5,275 4,751 524 50' July.. 15,674 11,184 4,490 407'- 777 5,714 July.. 5,282 Aug.. 16,304 11,662 4,642 659 1,219 5,146 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 nonpool of Government Mortgage Liquidation Trust, but exclude conven- profit hospital loan commitments in addition to 1- to 4- family loan comtional 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 Community Facilities Admin. HOME-MORTGAGE YIELDS FEDERAL NATIONAL MORTGAGE ASSOCIATION ACTIVITY UNDER FREE MARKET SYSTEM (In per cent) Primary market Secondary Implicit yield, by (conventional loans) market Mortgage amounts commitment period (in months) FHA series FFHHLLBBBB sseerriieess YYYiiieeelllddd Date Accepted PPPPeeeerrrriiiioooodddd ((eeffffeeccttiivvee rraattee)) ooonnn FFFHHHAAA--- of iiinnnsssuuurrreeeddd auction New Existing hh NN oomm eeww ee ss h l h l h looo nnn ooo aaa eee mmm nnn www sss eee Offered Total pe B r y i o c d o ( m in m m itm on e t n h t s ) 12-18 homes homes 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—Dec. 14.. 165.1 124.7 42.1 72.1 10.5 8.51 8.43 8.47 1970—Aug 8.52 8.41 8.60 9.07 Sept 8.48 8.42 8.50 9.01 1971—Jan. 25.. 44.1 35.5 9.9 25.6 7.82 7.96 8.40 Oct 8.51 8.35 8.50 8.97 Nov 8.43 8.32 8.45 8.90 Feb. 8.. 23.4 23.3 10.6 12.7 7.67 7.67 Dec 8.38 8.26 8.30 8.40 Mar. 1.. 185.6 51.8 15.2 29.3 7.3 7.43 7.43 7.56 1971—Jan 8.18 8.08 7.95 15.. 193.5 74.0 17.9 41.2 14.9 7.32 7.44 7.54 Feb 7.91 7.80 7.75 29.. 122.5 67.0 36.7 26.3 3.9 7.32 7.45 7.55 Mar 7.66 7.60 7.60 7.32 Apr 7.49 7.47 7.55 7.37 Apr. 12.. 126.9 54.6 39.8 9.4 5.4 7.32 7.45 7.53 May 7.47 7.45 7.65 7.75 26.. 687.2 313.9 154.0 126.6 33.4 7.43 7.54 7.57 June 7.50 7.50 7.70 7.89 July 7.66 7.63 7.80 7.97 May 10.. ,168.0 236.8 145.7 71.3 19.7 7.57 7.68 7.74 Aug 7.73 7.71 7.85 7.92 24.. 785.7 151.6 44.6 84.4 22.5 7.95 7.97 8.03 June 1.. 322.4 146.6 77.1 57.8 11.6 8.05 8.18 8.16 NOTE.—Annual data are averages of monthly figures. The 14.. 638.2 191.2 133.7 47.3 10.2 7.91 8.15 8.22 FHA data are based on opinion reports submitted by field offices 28.. 539.0 262.6 191.8 60.3 10.4 7.92 8.22 8.28 on prevailing local conditions as of the first of the succeeding month. Yields on FHA-insured mortgages are derived from July 12.. 606 241.1 161.8 60.3 10.4 7.98 8.23 8.31 weighted averages of private secondary market prices for Sec. 28.. 686 183.4 183.3 58.2 21.1 8.07 203, 30-year mortgages with minimum downpayment and an assumed prepayment at the end of 15 years. Gaps in data are Aug. 25 . 635 153.5 7.97 due to periods of adjustment to changes in maximum permissible contract interest rates. The FHA series on average contract Sept. 8.. 445 188.6 7.88 interest rates on conventional first mortgages in primary markets 20.. 438 193.0 7.86 are unweighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional first- NOTE.—Implicit secondary market yields are gross—before deduction of 38mortgage terms, p. A-37) and an assumed prepayment at end basis-point fee paid for mortgage servicing. They reflect the average accepted bid of 10 years yield for Govt.-underwritten mortgages after adjustment by Federal Reserve to allow for FNMA commitment fees and FNMA stock purchase and holding requirements, assuming a prepayment period of 15 years for 30-year loans. Commitments 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 • OCTOBER 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 3,337 196 5 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 196 6 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 196 7 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 196 8 113,191 89,890 34,130 24,899 3,925 ,26,936 23,301 9,138 7,755 6,408 196 9 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 197 0 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1970—Aug. 123,655 99,860 36,908 27,801 4,104 31,047 23,795 9,294 7,508 6,993 Sept. 123,907 100,142 36,738 28,055 4,123 31,226 23,765 9,316 7,489 6,960 Oct.. 123,866 99,959 36,518 28,152 4,126 31,163 23,907 9,313 7,656 6,938 Nov. 123,915 99,790 36,011 28,378 4,133 31,268 24,125 9,345 7,757 7,023 Dec. 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1971—Jan.. 125,077 100,101 35,004 29,575 4,067 31,455 24,976 9,480 8,094 7,402 Feb., 123,815 99,244 34,869 28,928 4,051 31,396 24,571 9,506 7,353 7,712 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 July. 128,354 102,848 36,763 29,165 4,240 32,680 25,506 9,854 8,271 7,381 Aug. 129,704 104,060 37,154 29,477 4,295 33,134 25,644 9,997 8,305 7,342 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage cluded 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 i 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 5,936 196 5 71,324 61,533 28,962 24,282 7,324 965 9,791 315 9,476 196 6 77,539 66,724 31,319 26,091 8,255 1,059 10,815 277 10,538 196 7 80,926 69.490 32,700 26,734 8,972 1,084 11,436 285 11,151 196 8 89,890 77.457 36,952 29,098 10,178 1,229 12,433 320 12,113 196 9 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 12,851 197 0 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1970—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 July. 102,848 89.458 43,509 30,906 13,296 1,747 13,390 344 13,046 Aug. 104,060 90,536 44,112 31,098 13,570 1,756 13,524 347 13,177 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
OCTOBER 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) E p n e d ri o o d f Total c P ha A u s r u e - t p d o a m pe o D r b i i r le e ct s g O p c u o a t o m h o p n d e e e - r r s r m i R z l o o e a a d a n p t e i n d a o r s i n n r - s lo P o a e n n r a - s l End of period Total m p A a o u p b t e o il r - e O s g p c u o a t o m o h p n d e e e - s r r r m i R z lo o a e a a n d p ti n d e a o s r i n r n - l s o P 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 1 1 1 9 9 9 5 6 5 5 0 0 1 1 5 0 6 , , , 7 6 6 9 0 7 8 1 2 5 3 1 , , , 3 2 1 1 4 7 6 7 3 2 2 1 , , , 0 8 2 6 2 94 2 0 2 2 1 , , , 7 0 4 5 4 5 9 2 6 2 1 , , 2 3 8 3 0 3 8 0 4 3 1 1 , , , 5 9 0 1 7 3 6 7 7 1 1 1 9 9 9 5 5 6 5 0 0 1 1 5 5 1 , , , 3 4 8 1 3 3 5 5 8 7 7 3 , , , 1 7 1 0 0 5 8 7 3 2 1 , , 5 4 6 5 4 9 3 8 2 1 4 8 7 2 0 3 5 3 1 , , , 0 3 2 0 8 4 6 6 0 196 5 28,962 10,209 5,659 4,166 2,571 6,357 24,282 9,400 4,425 224 10,233 196 6 31,319 11,024 5,956 4,681 2,647 7,011 1966 26,091 9,889 5,171 191 10,840 1 1 9 9 6 6 7 8 3 3 2 6 , ,9 7 5 0 2 0 1 12 0 , , 2 9 1 2 3 7 7 6 , , 1 2 0 6 5 7 5 6 , ,0 12 6 6 0 2 2, , 7 6 1 2 9 9 7 8 , , 7 85 5 5 1 1968 2 2 6 9 , , 7 0 3 9 4 8 1 9 0 , , 5 2 3 7 8 9 5 5 , , 4 9 7 9 9 9 1 11 5 3 4 1 1 2 1 , , 7 5 0 6 7 3 196 9 40,305 12,784 7,620 7,415 2,751 9,735 1969 31,734 11,053 6,514 106 14,061 197 0 41,895 12,433 7,587 8,633 2,760 10,482 31,123 9,941 6,648 94 14,440 1970—Aug... 41,934 12,981 7,748 8,183 2,770 10,252 1970—Aug 31,588 10,732 6,529 94 14,233 Sept... 42,051 12,890 7,734 8,263 2,783 10,381 Sept 31,510 10,619 6,568 94 14,229 Oct.... 42.010 12,824 7,730 8,286 2,785 10,385 Oct 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 Dec 31,123 9,941 6,648 94 14,440 1971—Jan.... 41,611 12,253 7,530 8,613 2,727 10,488 1971—Jan 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 Apr 30,369 9,781 6,280 98 14,210 May... 42,482 12,361 7,942 8,676 2,729 10,774 May 30,441 9,810 6,236 100 14,295 June... 43.011 12,484 8,098 8,821 2,765 10,843 June 30,609 9,918 6,224 101 14,366 July... 43,509 12,614 8,220 8,931 2,803 10,941 30,906 10,037 6,230 101 14,538 Aug. .. 44,112 12,753 8,318 9,074 2,838 11,129 Aug 31,098 10,077 6,249 103 14,669 See NOTE to first table on preceding page. NOTE.—Finance companies consist of those institutions formerly classified 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 cards 1 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 I960 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 1 1 9 9 6 7 9 0 1 1 2 4 , , 9 0 4 4 3 6 4 5 , , 8 2 0 0 9 2 8 8 2 9 9 8 1 1 , , 1 2 8 5 3 6 6 6 , , 1 6 2 9 2 0 1 1 1 9 9 9 6 6 6 6 5 7 2 2 1 1 0 8 , , , 2 0 9 0 0 9 6 4 0 6 7 6 , , , 9 3 6 4 4 9 6 0 0 1 1 , , 0 0 9 2 8 8 6 8 1 5 5 5 , , , 8 9 7 1 3 2 2 9 4 1,0 7 8 2 0 7 9 6 4 5 5 4 , , , 3 8 8 4 8 1 6 0 9 1970— S O A e u c p t g t 1 1 1 3 3 3 , , , 7 9 9 9 1 2 3 0 4 5 5 5 , , , 1 1 1 5 1 6 8 0 4 8 8 8 8 9 9 1 0 1 1 1 1 , , , 2 2 2 4 4 4 6 0 7 6 6 6 , , , 6 5 6 1 6 2 6 2 2 1 1 1 9 9 9 6 6 7 9 8 0 2 2 2 3 4 5 , , , 3 6 3 0 4 0 1 1 0 7 7 8 , , , 9 2 9 7 0 0 5 5 0 1 1 1 , , , 1 1 2 6 9 7 3 6 9 6 6 6 , , , 6 9 4 3 5 5 2 0 0 1 1 1 , , , 3 5 9 0 8 1 5 4 8 6 7 6 , , , 3 9 4 0 0 7 7 8 0 Nov 13,999 5,171 893 1,260 6,675 Dec 14,046 5,202 898 1,256 6,690 1970—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 May 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 July 15,043 5,548 958 1,336 7,201 Mar.... 24,436 8,249 1,308 5,316 1,891 7,672 Aug 15,326 5,659 977 1,354 7,336 25,019 8,350 1,326 5,774 1,915 7,654 May.'.".' 25,333 8,425 1,340 6,046 1,958 7,564 June... 25,526 8,512 1,350 6,199 2,015 7,450 NOTE.—Other financial lenders consist of credit unions and miscel- July... 25,506 8,498 1,356 6,173 2,098 7,381 laneous lenders. Aug. .. 25,644 8,633 1,364 6,120 2,185 7,342 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 • OCTOBER 1971 INSTALMENT CREDIT EXTENDED AND REPAID, BY TYPE OF CREDIT (In millions of dollars) Other consumer Repair and Total Automobile paper goods paper modernization loans Personal loans Period S.A.i N.S.A. S.A.i N.S.A. S.A.I N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965. 78,586 27,227 22,750 2,266 26,343 1966. 82,335 27,341 25,591 2,200 27,203 1967. 84,693 26,667 26,952 2,113 28,961 1968. 97,053 31,424 30,593 2,268 32,768 1969. 102,888 32,354 33,079 2,278 35,177 1970. 104,130 29,831 36,781 2,145 35,373 1970—Aug.. 8,809 8,915 2,537 2,540 3,168 3,152 173 197 2,931 3,026 Sept.. 8,849 8,580 2,621 2,402 3,071 3,097 186 194 2,971 2,887 Oct.. 8,580 8,670 2,349 2,463 3,113 3,200 182 184 2,936 2,823 Nov.. 8,414 8,271 2,127 2,006 3,113 3.147 180 176 2,994 2,942 Dec.. 8,536 10,194 2,170 2,045 3,281 4,562 177 149 2,908 3,438 1971—Jan... 8,916 7,545 2,461 1,997 3,252 2,868 177 122 3,026 2,558 Feb.. 9,081 7,489 2,687 2,336 3,204 2,431 197 155 2,993 2,567 Mar.. 9,533 9,575 2,897 3,074 3,210 3,076 209 197 3,217 3,228 9,751 10,079 2,872 3,100 3,415 3,363 205 219 3,259 3,397 May. 9,690 9,562 2,756 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 July.. 9,675 10,098 2,773 3,032 3,399 3,415 218 248 3,285 3,403 Aug.. 10,049 10,300 3,004 3,066 3,465 3,465 222 253 3,358 3,516 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—Aug.. 8,577 8,357 2,632 2,550 2,967 2,889 175 174 2.803 2,744 Sept.. 8,490 8,298 2,599 2,572 2,913 2,843 174 175 2.804 2,708 Oct.. 8,662 8,853 2,550 2,683 3,036 3,103 179 181 2,897 2,886 Nov.. 8,716 8,440 2,577 2,513 3,082 2,921 176 169 2,881 2,837 Dec.. 8,515 8,823 2,618 2,566 2,945 2,991 175 172 2,777 3,094 1971—Jan... 8,829 8,605 2,623 2,483 3,145 3,242 175 165 2,886 2,715 Feb.. 8,979 8,346 2,636 2,471 3,212 3,078 188 171 2,943 2,626 Mar.. 9,038 9,651 2.696 2,915 3,164 3,413 196 203 2,982 3,120 Apr.. 9,088 9,219 2,566 2,632 3,249 3,272 184 187 3,089 3,128 May. 9,197 8,898 2,640 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 July.. 8,914 9,112 2,565 2,618 3,203 3,226 188 194 2,958 3,074 Aug.. 9,222 9,088 2.697 2,675 3,262 3,153 196 198 3,067 3,062 Net change in credit outstanding 2 1965. 8,629 3,684 2,232 150 2,563 1966. 6,215 1,937 2,413 90 1,775 1967. 3,387 168 1,417 -29 1,831 1968. 8,964 3,406 2,504 136 2,918 1969. 8,279 2,472 2,710 115 2,982 1970. 2,992 -1,112 2,340 70 1,694 1970—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 May. 493 664 116 323 84 24 12 49 281 268 June. 525 1,170 160 530 200 270 32 60 133 310 July.. 761 986 208 414 196 189 30 54 327 329 Aug.. 827 1,212 307 391 203 312 26 55 291 454 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
OCTOBER 1971 • CONSUMER CREDIT A 59 INSTALMENT CREDIT EXTENDED AND REPAID, BY HOLDER (In millions of dollars) Other financial Total Commercial banks Finance companies lenders Retail outlets Period S.A.I N.S.A. S.A.i N.S.A. S.A.i N.S.A. S.A.I N.S.A. S.A.I N.S.A. Extensions 1965. 7788,,558866 '29,528 25,192 9,436 14,430 1966. 8822,,333355 30,073 25,406 10,362 16,494 1967. ... 888444,,,666999333 30,850 25,496 10,911 17,436 1968. 999777,,,000555333 36,332 28,836 12,850 19,035 1969. 111000222,,,888888888 38,533 30,854 14,245 19,256 1970. 110044,,113300 39,136 29,662 14,619 20,713 1970_Aug.. 8,809 88,,991155 3,308 3,385 2,427 2,416 1,235 1,318 839 1,796 Sept.. 8,849 88,,558800 3,417 3,352 2,441 2,300 1,265 1,212 726 1,716 Oct.. 8,580 88,,667700 3,276 3,301 2,371 2,387 1 221 1,187 712 1,795 Nov.. 8,414 88,,227711 3,159 2,885 2,300 2,342 1,184 1,150 771 1,894 Dec.. 8,536 1100,,119944 3,326 3,390 2,240 2,795 1,187 1,206 783 2,803 1971—Jan... 8,916 7,545 3,338 2,885 2,411 1,961 1,288 1,055 879 1,644 Feb.. 9,081 7,489 3,478 2,988 2,513 2,121 1,282 1,117 808 1,263 Mar.. 9,533 9,575 3,646 3,783 2,681 2,686 1,394 1,418 812 1,688 Apr.. 9,751 10,079 3,676 3,948 2,624 2,672 1,475 1,552 976 1,907 May. 9,690 9,562 3,600 3,671 2,798 2,655 1,441 1,493 851 1,743 June. 9,715 10,667 3,806 4,207 2,490 2,832 1,513 1,724 906 1,904 July.. 9,675 10,098 3,644 3,917 2,676 2,791 1,423 1,506 932 1,884 Aug.. 10,049 10,300 3,919 4,062 2,699 2,729 1,452 1,582 979 1,927 Repayments 1965. ...... 666666999999,,,,,,999999555555777777 25,663 22,551 8,310 13,433 1966. 777777666666,,,,,,111111222222000000 27,716 23,597 9,337 15,470 1967. 888888111111,,,,,,333333000000666666 29,469 24,853 10,169 16,815 1968. ...... 888888888888,,,,,,000000888888999999 32,080 26,472 11,499 18,038 1969. 999999444444,,,,,,666666000000999999 35,180 28,218 12,709 18,502 1970. 111111000000111111,,,,,,111111333333888888 37,961 29,858 13,516 19,803 1970—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. 9,197 8,898 3,375 3,283 2,698 2,583 323 1,267 801 1,765 June. 9,190 9,497 3,541 3,678 2,550 2,664 299 1,368 800 1,787 July.. 8,914 9,112 3,351 3,419 2,485 2,494 293 1,387 785 1,812 Aug.. 9,222 9,088 3,456 3,459 2,590 2,537 288 1,299 1,793 Net change in credit outstanding 2 1965. 8,629 3,865 2,641 1,126 997 1966. 6,215 2,357 1,809 1,025 1,024 1967. 3,387 1,381 643 742 621 1968. 8,964 4,252 2,364 1,351 997 1969. 8,279 3,353 2,636 1,536 754 1970. 2,992 1,590 -611 1,103 910 1970—Aug.. 232 558 123 231 -80 27 77 181 112 119 Sept.. 359 282 168 117 -41 -78 138 117 94 126 Oct.. -82 -183 18 -41 -180 -201 56 14 24 45 Nov.. -302 -169 -117 -270 -252 -228 49 75 18 254 Dec.. 21 1,371 64 155 -225 42 74 47 108 1,127 1971—Jan... 87 -1,060 -47 -284 -75 -332 89 -140 120 -304 Feb.. 102 -857 109 -165 -143 -280 96 47 40 -459 Mar.. 495 -76 259 117 7 -185 187 173 42 -181 Apr.. 663 860 344 531 44 43 160 216 115 70 May. 493 664 225 388 100 72 118 226 50 -22 June. 525 1,170 265 529 -60 168 214 356 106 117 July.. 761 986 293 498 191 297 130 119 147 72 Aug.. 827 1,212 463 603 109 192 164 283 91 134 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 repayments 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. • OCTOBER 1971 MARKET GROUPtNGS (1967 = 100) 11996677 1970 1971 pprroo-- 1970 Grouping ppoorr-- averttiioonn age^' Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.» Total index 100.00 106.7 107.5 106.5 103.7 102.6 104.6 105.3 105.7 105.5 106.2 107.0 107.2 106.1 104.8 Products, total 62.21 106.0 106.5 105.2 103.6 102.6 104.2 104.6 105.0 104.5 105.5 105.9 106.1 106.5 106.2 Final products 48,95 104,4 104.9 103.5 101.4 100.2 102.2 102.9 103.0 102.5 103.6 103.9 104.5 104.7 104.8 Consumer goods 28.53 110.3 111.6 110.1 109.0 107.7 110.8 112.8 112.9 112.7 114.6 115.7 116.1 115.8 116.0 Equipment 20.42 96.2 95.5 94.2 90.8 89.8 90.3 88.9 89.3 88.4 88.1 87.8 88.2 89.3 89.2 Intermediate products 13.26 111.9 112.2 111.4 111.9 111.6 112.1 110.9 112.5 112.0 112.4 113.5 112.4 113.3 111.4 Materials 37.79 107.8 109.3 109.0 104.1 102.8 105.4 106.5 106.8 107.1 107.5 108.9 109.0 105.5 102.4 Consumer goods Durable consumer goods 7.86 104.8 110.3 102.2 97.1 95.5 102.9 108.1 110.6 111.6 112.2 117.2 116.1 115.5 114.9 Automotive products 2.84 99.9 111.2 91.1 77.6 76.0 100.0 110.9 117.8 117.8 113.7 123.1 121.2 120.1 120.5 Autos 1.87 86.6 103.9 70.4 51.1 51.8 88.6 104.1 112.8 112.2 103.2 108.3 107.9 107.9 108.5 Auto parts and allied goods .97 125.6 125.4 130.9 128.7 122.3 122.2 124.1 127.4 128.6 133.9 151.4 146.8 143.6 143.2 Home goods 5,02 107.6 109.9 108.6 108.3 106.6 104.6 106.5 106.5 108.2 111.4 113.9 113,3 112,8 111.8 Appliances, TV, and radios 1.41 103.4 109.9 106.7 109.8 107.6 104.5 104.9 102.5 107.9 116.4 120.7 116.9 115.0 111.9 Appliances and A/C .92 122.1 129.0 123.3 128.8 127.1 120.6 122.6 117.6 124.9 126.0 132.1 129.3 126.0 127.9 TV and home audio .49 68.2 74.4 75.4 74.5 71.3 74.3 71.8 74.0 76.1 98.6 99.4 93.9 94.5 82.4 Carpeting and furniture 1.08 108.4 108.0 108.6 108.8 108.6 106.3 106.4 110.1 108.3 110.7 111.7 113.6 113.8 113.0 Misc. home goods 2.53 109.7 110.9 109.7 107.3 105.3 104.1 107.5 107.5 108.1 109.0 111.1 111.2 111.0 111.3 Nondurable consumer goods 20,67 112.5 112.1 113.0 113.5 112.3 113.8 114.6 113.8 113.1 115.5 115.1 116,1 115.9 116.4 Clothing 4.32 101.2 100.9 100.5 100.0 96.3 99.1 99.7 97.3 96.9 101.0 102.6 101.9 102.3 Consumer staples 16.34 115.4 115.2 116.4 117.2 116.6 117.7 118.5 118.1 117.4 119.4 118.5 119.9 119.5 iio.'e Consumer foods and tobacco.... 8.37 110.6 109.9 110.6 111.9 112.5 112.8 114.0 112.6 111.8 112.7 113.2 113.5 112.0 113.6 Nonfood staples 7.98 120.4 120.7 122.6 122.9 120.9 122.9 123.2 123.9 123.2 126.4 124.2 126.5 127.4 127.8 Consumer chemical products.. 2.64 126.1 123.8 123.4 125.8 127.7 132.5 131.8 131.8 131.6 134.0 133.2 130.9 133.0 132.6 Consumer paper products.... 1.91 103.9 103.8 104.5 102.8 101.4 102.6 104.4 104.6 103.0 108.2 105.0 109.9 106.9 106.8 Consumer fuel and lighting... 3.43 125.2 128.0 131.9 131.9 126.4 126.9 127.0 128.9 127.9 130.5 128.0 132.5 134.6 136.1 Residential utilities 2.25 131.3 135.9 140.7 141.2 132.2 131.9 132.0 135.2 133.2 136.4 135.1 140.6 143.0 145.4 Equipment Business equipment 12.74 101.1 101.7 100.5 95.9 94.6 95.6 94.2 96.0 95.0 95.1 94.4 95.0 96.4 96,2 Industrial equipment 6.77 98.8 97.6 98.0 94.6 93.9 94.0 91.5 93.4 92.4 92.4 90.9 90.9 91.9 91.1 Building and mining equip...... 1.45 95.9 92.9 91.5 91.7 93.3 93.6 90.6 94.3 92.4 91.2 91.5 88.8 88.9 90.0 Manufacturing equipment 3.85 91.9 90.0 91.8 86.7 84.6 84.2 82.9 82.2 81.3 82.1 79.5 80.1 81.2 79.8 Power equipment 1.47 119.9 122.6 120.7 118.2 118.7 119.8 115.0 121.7 121.5 120.5 120.2 121.3 122.7 121.6 Commercial, transit, farm eq* 5.97 103.7 106.5 103.4 97.1 95.6 97.9 97.2 99.0 98.0 98.2 98.4 99.6 101.5 101.9 Commercial equipment 3.30 110.6 111.9 110.0 108.2 106.0 105.3 105.5 107.0 106.6 107.1 107.6 107.6 109.8 110.2 Transit equipment 2.00 94.4 99.5 92.5 79.8 77.5 87.4 88.6 89.1 87.2 87.3 87.3 90.5 88.4 89.3 Farm equipment .67 97.7 101.0 102.6 93.9 98.9 92.4 82.0 88.8 88.0 86.6 86.6 87.7 100.1 98.6 Defense and space equipment 7,68 87.9 85.1 83,9 82.6 81.7 81.2 80,0 78.1 77.5 76.5 76.9 77.1 77.7 77.7 Military products 5.15 89.7 87.0 85.8 84.5 83.7 82.9 82.6 80.4 79.8 79.1 79.5 80.5 81.5 82.1 Intermediate products Construction products 5.93 110.6 111.7 110.0 111.5 110.4 112.5 111.1 111.9 112.6 113.4 115.5 113.5 114.1 110.0 Misc. intermediate products 7.34 113.0 112.5 112.8 112.1 112.4 111.9 110.8 113.1 111.4 111.6 111.9 111.6 112.6 112.6 Materials Durable goods materials 20,91 103.4 106.4 105.1 96.2 93.6 99.4 101,5 101.6 101.9 102.2 104.8 103.0 98.9 93.7 Consumer durable parts 4.75 96.5 107.1 101.7 80.4 76.9 95.8 99.4 101.4 103.2 102.8 105.1 104.8 98.8 100.9 Equipment parts 5.41 95.1 94.7 93.7 88.0 86.6 86.6 88.4 87.6 86.4 86.0 88.9 87.1 87.0 81.0 Durable materials nec 10.75 110.5 111.9 112.4 107.6 104.5 107.5 109.0 108.8 109.2 110.2 112.8 110.2 105.0 96.8 Nondurable goods materials 13,99 112,5 111.6 112,9 113.4 113.3 112.1 111.7 112.1 112.0 112.7 112.8 115.5 112.5 113.0 Textile, paper, and chem. mat 8.58 113.0 112.1 113.2 112.6 112.6 111.8 111.2 111.7 111.9 113.2 113.7 117.5 113.4 114.9 Nondurable materials n.e.c 5.41 111.5 110.9 112.3 114.7 114.7 112.7 112.5 112.7 112.3 111.9 111.3 112.0 111.0 110.0 Fuel and power, industrial 2.89 117.0 118.6 119.7 118.2 117.8 117.6 117.8 118.6 121.1 121.0 119.7 121.1 119.7 115.9 Home goods and clothing 9.34 104.7 105.7 104.8 104.5 101.8 102.0 103.4 102.3 102.9 106.6 108.7 108.0 107.8 106.6 Containers 1.82 119.5 119.9 116.8 119.1 120.6 117.4 119.2 119.6 108.1 113.5 117.8 115.5 120.8 117.2 Gross value of products in market structure (In billions of 1963 dollars) Products, total 386,8 f 391.8 382.7 375.1 372.5 380.9 386.2 388.6 385.9 390.2 391.6 392.6 396.1 393.3 Final products 298. C1 302.6 294.0 286.4 284.1 292.1 297.7 298.5 297.4 300.4 301.3 303.2 305.8 305.1 Consumer goods 202.6 ; 206.6 200.9 197.0 195.7 203.3 209.1 209.5 209.6 212.6 213.4 214.8 215.9 215.4 Equipment 95.5 i 96.1 93.2 89.5 88.3 88.7 88.7 89.2 87.9 87.9 87.6 88.5 89.9 89.9 Intermediate products 89.C) 89.4 89.1 89.1 88.9 89.0 ^ 88.4 89.9 88.5 89.3 90.2 89.6 90.3 88.4 For NOTE see p. A-63. • Refeited 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
OCTOBER 1971 • INDUSTRIAL PRODUCTION: SA A 61 INDUSTRY GROUPINGS (1967 = 100) 11996677 1970 1971 pprroo-- 11997700 GGrroouuppiinngg ppoorr-- aavveerr-ttiioonn aaggeePP Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.P Manufacturing 88.55 105.2 105.5 104.8 101.4 100.2 102.4 103.3 103.9 103.2 104.4 105.7 105.6 104.8 103.1 Durable 52.33 101.5 103.5 100.7 95.7 93.8 97.3 98.1 98.6 98.3 99.1 100.5 100.1 99.3 96.3 Nondurable. 36.22 110.6 108.6 110.7 109.7 109.6 110.0 110.9 111.7 110.4 112.1 113.3 113.7 113.0 112.9 Mining and utilities 11.45 118.0 118.4 121.1 121.9 120.6 120.1 119.3 119.9 120.2 120.6 119.0 120.7 120.0 119.7 Mining 6.37 109.7 108.8 110.9 112.4 113.7 112.1 111.1 110.1 111.4 110.4 108.6 108.9 105.8 105.6 Utilities 5.08 128.5 130.5 133.9 134.0 129.6 130.2 129.6 132.2 131.5 133.2 132.1 135.6 137.8 137.4 Durable manufactures 12.55 108.1 111.8 108.9 104.2 101.2 105.1 106.8 106.0 105.8 108.6 111.5 108.3 104.5 92.3 Primary metals 6.61 106.9 111.9 108.8 102.5 98.4 104.3 108.1 105.5 106.6 108.7 114.3 108.1 98.9 78.0 Iron and steel, subtotal 4.23 105.3 111.8 108.2 102.4 95.6 101.4 106.9 104.8 105.2 109.1 112.9 105.3 99.8 63.3 Fabricated metal products 5.94 109.4 111.8 109.0 106.3 104.5 106.2 105.4 106.6 104.9 108.5 108.5 108.5 110.8 108.2 Machinery and allied goods 32.44 97.6 99.6 96.2 89.9 88.4 92.4 93.0 93.5 93.0 92.7 93.8 94.4 94.5 94.6 Machinery 17.39 100.5 101.5 100.4 96.5 94.9 94.8 93.4 94.2 94.0 94.2 95.3 95.2 97.4 95.8 Nonelectrical machinery 9.17 99.6 100.4 99.8 95.6 93.2 92.4 90.1 92.3 91.1 91.4 90.9 91.6 94.9 94.6 Electrical machinery 8.22 101.4 102.8 101.1 97.5 96.7 97.4 97.1 96.3 97.1 97.4 100.2 99.2 100.2 97.1 Transportation equipment 9.29 90.3 96.1 87.5 73.8 71.7 86.8 91.1 92.6 91.3 89.5 90.9 91.7 88.5 91.1 Motor vehicles and parts 4.56 96.9 111.3 94.6 68.6 65.4 98.5 107.7 113.0 112.2 108.4 110.2 111.7 106.7 112.9 Aerospace and misc. trans, eq... 4.73 83.9 81.4 81.0 78.8 78.0 75.8 75.2 72.9 71.2 71.4 72.3 72.4 71.0 70.2 Instruments 2.07 110.8 110.5 108.9 107.3 106.5 104.9 106.5 105.3 105.5 106.7 108.0 108.5 108.7 109.2 Ordnance, private and Govt 3.69 95.3 93.0 91.9 90.4 89.3 88.5 87.9 85.5 85.7 85.2 86.0 88.8 89.0 90.2 Lumber, clay, and glass 4.44 106.3 106.6 105.6 105.3 105.0 107.5 106.9 109.8 110.8 113.0 112.3 111.0 112.2 111.7 Lumber and products 1.65 106.3 108.9 107.2 106.8 106.4 106.8 109.7 110.8 110.3 112.5 110.0 111.0 115.4 116.2 Clay, glass, and stone products 2.79 106.3 105.1 104.8 104.5 104.1 107.9 105.3 109.2 111.1 113.3 113.7 111.1 110.3 109.1 Furniture and miscellaneous 2.90 108.8 110.0 109.4 108.7 105.7 104.9 105.2 107.1 105.6 109.5 109.9 111.3 111.4 110.0 Furniture and fixtures 1.38 99.4 100.1 99.3 100.1 96.5 95.5 94.2 96.0 95.0 98.7 97.6 100.9 99.9 97.9 Miscellaneous manufactures 1.52 117.3 119.1 118.5 116.7 114.0 113.4 115.2 117.2 115.4 119.3 121.2 120.7 122.1 121.1 Nondurable manufactures Textiles, apparel, and leather 6.90 100.2 99.3 99.1 98.7 96.0 97.1 98.6 98.0 97.3 99.8 101.5 102.4 101.5 99.2 Textile mill products 2.69 106.3 105.6 105.2 104.1 102.8 103.3 103.1 105.4 105.3 106.3 107.5 113.2 108.5 107.4 Aooarel Droducts 33..3333 97.8 97.0 96.8 96.9 93.4 94.9 97.4 94.5 94.0 97.3 99.7 97.1 99.7 Leather and products ..8888 90.8 89.5 90.2 89.6 85.0 86.7 89.5 89.0 85.4 89.9 89.8 89.3 86.7 84.1 Paper and printing 7.92 107.8 107.9 106.7 106.1 106.4 105.0 107.1 108.1 104.6 106.9 106.9 106.0 106.1 107.8 Paper and products 3.18 113.3 112.7 109.8 111.9 113.3 110.6 116.9 116.0 111.0 114.4 115.1 113.4 113.6 116.5 Printing and publishing 4.74 104.1 104.6 104.5 102.3 101.9 101.2 100.5 102.8 100.2 101.8 101.4 101.0 101.1 102.0 Chemicals, petroleum, and rubber.... 11.92 118.2 117.8 119.1 117.2 117.8 118.9 118.2 120.9 120.5 122.4 124.2 125.3 124.0 124.3 Chemicals and products 7.86 120.2 119.4 121.5 120.3 119.7 121.2 119.3 121.7 121.0 123.4 123.7 126.8 125.0 125.4 Petroleum products 1.80 112.6 112.1 112.9 113.2 116.9 118.1 117.2 117.1 116.3 115.8 112.7 115.0 114.8 115.0 Rubber and plastics products 2.26 115.7 117.5 115.9 110.0 111.4 111.8 115.5 120.6 122.7 124.5 135.4 129.1 128.0 127.9 Foods and tobacco 9.48 110.8 104.4 112.0 111.7 111.9 112.5 113.9 113.1 112.1 112.9 113.6 113.7 113.5 112.9 Foods 8.81 111.7 104.7 113.1 112.3 112.7 113.5 114.6 114.1 113.8 114.1 114.6 115.4 114.8 114.2 Tobacco products ..6677 110000..00 110000..44 110000..55 110044..44 110022..33 9999..55 110066..66 110000..11 9900..33 9966..99 110000..33 9922..11 9966..66 Mining Metal, stone, and earth minerals 1.26 112.0 110.4 110.0 113.0 118.6 116.4 113.6 113.6 111.6 106.5 104.6 104.9 91.5 93.7 Metal mining .51 131.3 129.1 130.5 134.3 148.5 144.7 140.1 139.0 135.1 124.7 122.6 117.3 93.3 100.7 Stone and earth minerals .75 98.8 97.6 96.2 98.6 98.4 97.3 95.6 96.3 95.6 94.2 92.4 96.4 90.2 88.9 Coal, oil, and gas 5.11 109.2 108.6 111.3 112.3 112.6 111.0 110.6 109.3 111.4 111.4 109.6 109.9 109.3 108.6 Coal .69 105.8 108.8 109.7 108.7 107.9 103.6 112.3 108.8 116.2 115.5 110.2 109.4 109.4 104.9 Oil and gas extraction 4.42 109.7 108.7 111.5 112.9 113.4 112.3 110.3 109.3 110.6 114.3 109.6 110.0 109.2 109.2 Utilities Electric 3.91 130.8 133.2 137.5 137.6 131.9 132.5 131.5 134.9 133.6 135.5 133.8 138.3 140.8 140.2 Gas 11..1177 112211..00 112211..44 112211..77 112211..99 112222..11 112222..44 112233..00 112233..66 112244..33 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. • OCTOBER 1971 MARKET GROUPINGS (1967 = 100) 11996677 1970 1971 pprroo-- 11997700 GGrroouuppiinngg ppoorr-- aavveerr-ttiioonn aaggee^^** Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. ^ Total index 100.00 106.7 107.1 109.6 106.5 103.1 102.0 103.2 106.1 106.0 106.5 107.3 109.7 102.0 105.2 Products, total 62.21 106.0 107.0 109.8 107.0 102.7 100.7 101.8 104.7 104.5 105.0 105.1 109.0 103.5 107.8 Final products 48.95 104.4 104.5 107.8 104.5 100.2 98.9 101.0 103.4 103.0 102.9 102.7 107.2 101.3 105.8 Consumer goods 28.53 110.3 112.4 116.9 113.6 107.2 105.4 110.3 113.2 112.9 113.6 113.5 119.3 111.3 118.6 Equipment 20.42 96.2 93.5 95.0 91.9 90.4 89.8 88.1 89.6 89.1 88.0 87.6 90.4 87.2 87.8 Intermediate products 13.26 111.9 116.1 117.0 116.0 111.8 107.3 104.7 109.5 110.2 112.6 113.8 115.5 111.7 115.4 Materials 37.79 107.8 107.3 109.2 105.8 103.7 104.1 105.4 108.3 108.4 109.0 110.8 110.9 99.4 100.8 Consumer goods Durable consumer goods 7.86 104.8 96.7 107.3 103.7 98.7 100.8 107.3 113.8 114.8 114.7 117.3 120.5 101.8 107.4 Automotive products 2.84 99.9 75.2 94.7 83.7 80.1 100.0 115.6 125.1 125.3 121.9 127.2 130.5 94.9 101.3 Autos 1.87 86.6 46.3 72.7 58.7 58.2 92.4 113.5 124.1 123.4 112.5 120.2 120.8 69.4 76.5 Auto parts and allied goods .97 125.6 130.4 136.9 131.7 122.1 114.6 119.6 127.0 128.9 139.9 140.8 149.0 144.0 148.9 Home goods 5.02 107.6 108.9 114.5 115.0 109.2 101.3 102.6 107.4 108.8 110.7 111.7 114.9 105.7 110.9 Appliances, TV, and radios 1.41 103.4 99.8 113.2 123.2 110.0 90.9 102.5 108.9 113.6 116.1 117.1 117.3 102.5 104.0 Appliances and A/C .92 122.1 112.1 127.7 138.3 122.3 100.3 120.1 124.7 133.6 133.1 132.2 136.1 122.3 114.3 TV and home audio .49 68.2 76.6 86.0 94.9 86.3 73.2 69.5 79.3 76.2 84.3 88.8 81.9 65.4 84.8 Carpeting and furniture 1.08 108.4 108.2 111.8 110.0 111.5 108.6 108.0 114.7 111.4 111.1 108.6 112.6 97.9 111.2 Misc. home goods 2.53 109.7 114.3 116.4 112.5 107.8 103.9 100.4 103.4 105.1 107.5 110.0 114.4 110.8 114.7 Nondurable consumer goods 20.67 112.5 118.4 120.5 117.4 110.4 107.1 111.4 113.0 112.2 113.2 112.1 118.8 115.0 112222..99 Clothing 4.32 101.2 106.3 103.3 104.8 95.8 85.5 95.0 102.0 102.5 102.6 101.4 105.5 93.5 Consumer staples 16.34 115.4 121.6 125.0 120.7 114.3 112.8 115.7 115.9 114.8 116.0 114.9 122.3 120.8 'i27."3 Consumer foods and tobacco 8.37 110.6 115.5 120.5 118.4 111.3 106.6 108.1 108.5 108.7 110.0 110.8 116.6 112.6 119.6 Nonfood staples 7.98 120.4 127.9 129.7 123.1 117.5 119.3 123.7 123.7 121.2 122.3 119.1 128.3 129.4 135.4 Consumer chemical products.. 2.64 126.1 129.6 134.3 132.8 127.6 123.2 123,9 125.7 125.7 131.2 132.4 142.2 131.7 138.8 Consumer paper products 1.91 103.9 111.4 111.0 106.2 100.7 97.4 99.6 101.8 100.1 107.1 102.0 110.2 109.6 114.6 Consumer fuel and lighting. .. 3.43 125.2 115.1 117.0 113.6 115.4 120.3 137.0 134.3 129.6 123.8 118.4 127.6 138.7 144.4 Residential utilities 2.25 131.3 146.6 146.6 131.0 121.2 132.7 146.7 143.0 137.1 129.2 122.3 132.4 148.2 156.9 Equipment Business equipment 12.74 101.1 99.1 101.6 97.5 95.3 94.3 92.7 96.6 96.0 95.3 94.2 98.0 93.4 94.5 Industrial equipment 6.77 98.8 96.3 98.9 96.6 95.0 93.2 90.8 93.9 92.8 92.4 90.3 92.6 90.5 91.1 Building and mining equip 1.45 95.9 87.2 93.1 93.2 97.0 95.3 89.8 93.3 90.3 91.7 90.9 91.6 87.0 90.5 Manufacturing equipment 3.85 91.9 89.7 91.8 88.0 85.6 83.5 81.9 84.3 82.9 82.0 79.1 81.5 79.4 79.6 Power equipment 1.47 119.9 122.7 123.2 122.5 117.4 116.3 115.1 119.6 120.9 120.3 119.2 122.6 122.7 121.7 Commercial, transit, farm eq.* 5.97 103.7 102.3 104.6 98.4 95.6 95.6 94.8 99.7 99.7 98.5 98.6 104.2 96.6 98.3 Commercial equipment 3.30 110.6 112.7 113.5 109.2 106.3 103.4 101.8 105.3 104.7 105.3 106.0 112.4 112.5 111.3 Transit equipment 2.00 94.4 91.1 90.5 81.5 79.6 85.2 87.1 91.5 91.0 88.9 89.0 93.8 75.1 81.8 Farm equipment .67 97.7 84.6 102.4 95.5 90.1 88.0 83.4 96.7 100.9 93.7 90.9 94.3 81.9 82.6 Defense and space equipment 7.68 87.9 84.2 84.0 82.7 82.4 82.3 80.5 78.1 77.7 76.0 76.7 77.8 76.8 76.9 Military products 5.15 89.7 87.0 85.8 84.5 83.7 82.9 82.8 80.3 80.1 78.9 79.7 81.8 80.9 81.5 Intermediate products Construction products 5.93 110.6 114.3 114.5 115.2 110.1 105.4 103.3 109.9 111.6 115.8 118.0 118.6 111.1 112.5 Misc. intermediate products 7.34 113.0 117.5 119.0 116.6 113.1 108.8 105.8 109.1 109.1 110.0 110.4 113.0 112.3 117.7 Materials Durable goods materials 20.91 103.4 103.0 105.3 97.2 94.0 98.0 99.8 103.2 104.2 104.1 107.2 106.3 92.3 90.7 Consumer durable parts 4.75 96.5 98.1 101.1 82.3 80.3 100.4 102.9 104.6 104.5 102.0 106.4 104.5 88.3 92.4 Equipment parts 5.41 95.1 92.4 94.6 87.7 85.8 86.7 87.8 88.9 89.0 87.0 89.4 89.4 81.7 79.1 Durable materials n.e.c 10.75 110.5 110.4 112.5 108.6 104.2 102.7 104.4 109.8 111.8 113.7 116.6 115.6 99.5 95.8 Nondurable goods materials 13.99 112.5 111.4 113.0 116.1 114.9 110.0 110.9 113.3 112.0 113.7 114.3 115.8 107.4 112.7 Textile, paper, and chem. mat 8.58 113.0 111.2 113.1 115.0 113.8 108.3 110.4 114.3 112.8 115.6 116.0 118.0 106.5 114.0 Nondurable materials n.e.c 5.41 111.5 111.6 112.7 117.8 116.6 112.7 111.6 111.6 110.8 110.8 111.6 112.4 108.7 110.7 Fuel and power, industrial 2.89 117.0 119.0 118.7 118.6 119.0 119.5 119.9 120.5 121.9 121.4 119.5 120.4 111.4 116.2 Supplementary groups Home goods and clothing 9.34 104.7 107.7 109.3 110.3 103.0 94.0 99.1 104.9 105.9 106.9 106.9 110.6 100.1 108.6 Containers 1.82 119.5 124.0 121.9 125.9 119.5 108.6 112.6 119.2 108.1 113.8 119.6 119.1 115.5 121.2 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
OCTOBER 1971 • INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967= 100) 1967 1970 1971 Grouping por- avertion agef Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.p Manufacturingt total 88.55 105.2 104.9 107.6 104.7 101.2 99.7 100.9 104.3 104.4 105.0 106.0 108.3 99.7 102.6 Durable 52.33 101.5 99.3 102.2 97.6 94.6 95.9 96.8 100.2 100.6 100.4 101.7 102.7 93.3 93.3 Nondurable 36.22 110.6 113.1 115.3 115.0 110.7 105.2 106.8 110.2 109.8 111.7 112.1 116.3 108.9 115.9 Mining and utilities 11.45 118.0 123.6 124.1 120.7 117.5 119.5 120.6 119.7 119.4 117.9 117.0 120.7 120.7 124.9 Mining 6.37 109.7 110.7 111.6 • 113.4 113.2 112.0 108.7 108.6 109.7 110.4 110.9 111.0 103.0 106.9 Utilities 5.08 128.5 139.9 139.8 129.8 123.0 128.9 135.6 133.7 131.5 127.3 124.6 132.8 143.0 147.5 Durable manufactures 12.55 108.1 107.1 108.1 104.4 101.3 102.2 105.7 110.0 111.0 112.0 114.6 111.1 96.2 88.7 Primary metals 6.61 106.9 105.4 105.4 100.7 91.\ 99.0 106.6 111.6 115.2 115.8 119.8 112.6 88.5 73.5 Iron and steel, subtotal 4.23 105.3 105.4 103.1 98.7 94.2 96.4 105.2 110.7 114.3 117.1 119.1 109.0 91.1 59.7 Fabricated metal products 5.94 109.4 109.0 111.1 108.6 •106.0 105.8 104.7 108.2 106.3 107.7 108.8 109.5 104.7 105.5 Machinery and allied goods 32.44 97.6 93.6 97.8 91.9 89.3 91.9 92.8 95.1 94.9 93.4 94.4 96.7 88.8 90.2 Machinery 17.39 100.5 98.4 102.7 98.8 95.4 92.6 92.4 96.0 95.8 94.9 94.8 97.0 92.2 92.8 Nonelectrical machinery 9.17 99.6 96.7 100.5 95.8 93.3 90.4 88.9 94.3 93.6 92.5 91.4 94.2 91.8 91.1 Electrical machinery 8 22 101.4 100.2 105.2 102.2 97.7 95.0 96.3 97.8 98.3 97.5 98.6 100.2 92.6 94.6 Transportation equipment 9.29 90.3 80.9 87.7 75.6 73.8 88.9 93.1 95.4 94.6 91.6 94.2 96.1 77.8 81.1 Motor vehicles and parts 4.56 96.9 81.6 94.2 71.8 69.5 102.0 112.9 118.9 117.7 112.0 116.9 120.5 86.1 93.6 Aerospace and misc. trans, eq. .. 4.73 83.9 80.2 81.5 79.2 77.9 76.3 74.1 72.8 72.3 72.0 72.4 72.6 69.7 69.1 Instruments 2.07 110.8 112.8 113.3 110.4 107.0 104.8 103.4 102.2 103.7 103.4 106.9 110.8 110.7 111.5 Ordnance, private and Govt 3.69 95.3 91.9 91.5 89.8 89.4 88.9 88.4 86.3 86.2 85.2 86.2 89.2 88.3 89.1 Lumber, clay, and glass 4.44 106.3 112.0 110.8 110.5 105.0 100.9 97.7 104.5 108.7 113.2 114.5 116.6 111.4 117.4 Lumber and products 1.65 106.3 113.3 112.5 110.8 104.1 97.0 98.8 110.6 112.1 114.5 112.5 117.5 112.2 120.8 Clay, glass, and stone products 2.79 106.3 111.2 109.8 110.4 105.6 103.2 97.0 100.9 106.7 112.5 115.7 116.1 111.0 115.4 Furniture and miscellaneous 2.90 108.8 110.7 113.2 112.0 109.5 105.7 102.3 107.4 106.6 108.7 107.6 112.3 104.2 110.8 Furniture and fixtures 1.38 99.4 98.5 100.3 100.4 99.4 98.4 96.2 100.7 98.5 98.6 95.8 99.3 86.8 96.3 Miscellaneous manufactures 1.52 117.3 121.8 124.9 122.5 118.8 112.3 107.9 113.6 114.0 117.9 118.4 124.1 120.0 123.9 Nondurable manufactures Textiles, apparel, and leather 6.90 100.2 103.7 101.6 102.9 96.5 87.3 95.7 101.8 101.7 101.6 101.3 104.6 90.7 103.4 Textile mill products 2.69 106.3 109.5 107.6 107.6 103.5 93.5 102.0 107.6 108.2 108.5 110.4 114.0 96.9 111.3 Apparel products 3.33 97.8 101.5 99.6 101.5 93.7 83.5 92.3 99.4 99.4 99.3 97.4 100.8 89.7 Leather and products .88 90.8 94.4 90.6 93.8 85.6 82.6 88.8 92.7 90.4 88.8 87.9 89.8 75.2 88.7 Paper and printing 7.92 107.8 111.4 111.8 111.8 108.0 99.5 101.3 105.4 103.2 107.4 106.8 108.5 103.6 111.2 Paper and products 3.18 113.3 112.5 109.5 m.i 114.2 102.3 115.5 118.9 113.6 117.8 116.2 116.6 105.7 116.3 Printing and publishing 4.74 104.1 110.6 113.3 107.8 103.8 97.6 91.7 96.4 96.2 100.4 100.5 103.1 102.2 107.8 Chemicals, petroleum, and rubber 11.92 118.2 118.4 122.4 120.4 118.7 117.1 114.7 119.4 119.7 122.2 123.2 128.6 120.4 124.8 Chemicals and products 7.86 120.2 120.4 124.7 122.7 120.2 118.7 115.1 118.9 119.5 124.3 125.3 131.1 122.4 126.4 Petroleum products 1.80 112.6 117.0 118.1 115.2 116.1 116.3 112.4 113.5 112.0 110.9 111.7 119.1 118.9 120.1 Rubber and plastics products 2.26 115.7 112.8 118.0 116.5 115.4 112.0 115.3 125.8 126.4 124.0 125.0 127.7 114.8 122.8 Foods and tobacco 9.48 110.8 114.7 119.3 119.7 113.1 107.9 109.5 108.8 108.8 109.6 110.5 115.9 111.8 117.8 Foods 8.81 111.7 115.2 120.3 120.3 113.9 109.8 109.7 109.2 110.2 110.9 111.4 117.2 113.8 118.8 Tobacco products ..6677 110000..00 110088..00 110066..77 111122..44 110033..11 8833..55 110066..44 110033..00 9900..55 9922..77 9999..33 9988..55 8866..22 Mining Metal, stone, and earth minerals 1.26 112.0 118.9 117.0 117.2 111.0 105.5 97.7 98.7 101.0 107.2 116.9 118.3 97.2 100.7 Metal mining .51 131.3 144.0 141.2 135.2 124.7 116.9 115.0 118.3 117.9 126.1 145.7 147.7 106.6 112.3 Stone and earth minerals .75 98.8 101.9 100.5 104.9 101.7 97.7 86.0 85.3 89.5 94.4 97.4 98.3 90.9 92.8 Coal, oil, and gas 5.11 109.2 108.7 110.3 112.5 113.8 113.6 111.4 lll.O 111.8 111,2 109.4 109.2 104.4 108.4 Coal .69 105.8 115.9 112.6 116.2 110.3 103.0 111.1 109.1 114.7 117.6 112.4 111.6 82.7 111.7 Oil and gas extraction 4.42 109.7 107.6 109.9 111.9 114.4 115.2 111.4 111.3 111.3 114.1 108.9 108.8 107.8 107.9 Utilities Electric 3.91 130.8 145.5 145.2 132.2 123.2 130.8 139.3 136.7 133.6 128.0 124.2 134.6 147.7 153.4 Gas 11..1177 112211..00 112211..44 112211..77 112211..99 112222..11 112222..44 112233..00 112233..66 112244..33 NOTE.—Published groupings include some series and subtotals not a later date. Figures for individual series and subtotals are published in shown separately. A description and historical data will be available at the monthly Business Indexes release. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 64 BUSINESS ACTIVITY; CONSTRUCTION • OCTOBER 1971 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu- Prices ^ facturing 2 In- Ca- Market dustry pacity Nonagutiliza- Con- ricul- Products tion struc- tural Total Period Total Total Final C p o r n o ducts m In e t d e i r a - te M ri a a t l e s - f M a i c a n t n g u u r - - = i o n ( u 1 m 1 9 tp 0 6 f u 0 7 g t ) . tr c t a i o o c n t n s - T m p o e e l m o t n a y t - l — - 1 p m E lo e m n y - - t P ro a l y ls - s r a e l t e a s il 3 s C u o m n e - r m W c s o o h a d m o le i l t - e y - Total sumer Equip- prodgoods ment ucts 1952.. 92.8 74.1 93.4 54.5 52 79.5 88.6 1953.. 95.5 76.3 98.2 60.3 54 80.1 87.4 1954.. 51.9 51.8 50.8 53.3 47.9 55.1 52.0 51.5 84.1 74.4 89.6 55.1 54 80.5 87.6 1955., 58.5 56.6 54.9 59.5 48.9 62.6 61.5 58.2 90.0 76.9 92.9 61.1 59 80.2 87.8 1956., 61.1 59.7 58.2 61.7 53.7 65.3 63.1 60.5 88.2 79.6 93.9 64.6 61 81.4 90.7 1957., 61.9 61. 59.9 63.2 55.9 65.3 63.1 61.2 84.5 80.3 92.2 65.4 64 84.3 93.3 1958., 57.9 58.6 57.1 62.6 50.0 63.9 56.8 56.9 75.1 78.0 83.9 60.3 64 86.6 94.6 1959., 64.8 64.4 62.7 68.7 54.9 70.5 65.5 64.1 81.4 81.0 88.1 67.8 69 87.3 94.8 1960. 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80. 82.4 88.0 68.8 70 88.7 94.9 1961. 66.7 66.9 65.3 72.8 55.6 72.4 66.4 65.6 77.6 82.0 84.5 68.0 70 89.6 94.5 1962. 72.2 72.1 70.8 77.7 61.9 76.9 72.4 71.4 81.4 84.4 87.3 73.3 75 90.6 94.8 1963. 76.5 76.2 74.9 82.0 65.6 81.1 77.0 75.8 83.0 86.1 86.1 87.8 76.0 79 91.7 94.5 1964. 81.7 81.2 79.6 86.8 70. 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965. 89.2 88. 86.8 93.0 78.7 93.0 91.0 89.1 89.0 93.2 92.3 93.9 88.1 91 94.5 96.6 1966. 97.9 96.8 96.1 98.6 93.0 99.2 99.8 98.3 91.9 94.8 97.1 99.9 97.8 97 97.2 99.8 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 87.9 100.0 100.0 100.0 100.0 100 100.0 100.0 1968. 105.7 105.8 105.8 106.6 104.7 105.7 105.7 105.7 87.7 113.2 103.1 101.4 108.3 108 104.2 102.5 1969. 110.7 109.7 109.0 11] 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 112 109.8 106.5 1970. 106.7 106.0 104.4 110.3 96.1 111.9 107.8 105.2 78.1 107.3 98.1 114.2 116 116.3 110.4 1970—Aug.. 107.5 106.5 104.9 111.6 95.5 112.2 109.3 105.5 135.0 107.0 97.7 114.6 118 116.9 110.5 Sept.. 106.5 105.2 103.5 110.1 94.2 111.4 109.0 104.8 118.0 107.0 97.6 114.4 118 117.5 111.0 Oct.. 103.7 103.6 101.4 109.0 90.8 111.9 104.1 101.4 115.0 106.4 93.7 108.7 117 118.1 111.0 Nov.. 102.6 102.6 100.2 107.7 89.8 111.6 102.8 100.2 74.0 130.0 106.3 92.8 108.1 116 118.5 110.9 Dec.. 104.6 104.2 102.2 110.8 90.3 112.1 105.4 102.4 132.0 106.8 94.9 112.4 117 119.1 111.0 1971—Jan.... 105.3 104.6 102.9 112.8 88.9 110.9 106.5 103.3 117.0 107.0 94.7 114.9 119 119.2 Feb.... 105.7 105.0 103.0 112.9 89.3 112.5 106.8 103.9 74.5 126.0 106.9 94.4 115.0 121 119.4 112.8 Mar... 105.5 104.5 102.5 112.7 88.4 112.0 107.1 103.2 141.0 107.0 94.0 114.7 123 119.8 113.0 106.2 105.5 103.6 114.6 88.1 112.4 107.5 104.4 161.0 107.2 94.4 115.4 126 120.2 113.3 May!! 107.0 105.9 103.9 115.7 87.8 113.5 108.9 105.7 75.1 141.0 107.5 94.8 117.6 125 120.8 113.8 June... 107.2 106. 104.5 116. 88.2 112.4 109.0 105.6 147.0 107.3 94.3 117.7 127 121.5 114.3 July... 106.1 106.5 104.7 115.8 89.3 113.3 105.5 104.8 151.0 ••107.1 '•93.9 116.8 126 121.8 114.6 Aug.. . 104.8 106.2 104.8 116.0 89.2 111.4 102.4 103.1 ^73.2 153.0 107.1 93.6 116.8 128 122.2 114.9 Sept.P 105.3 106.3 104.9 116.2 89.3 111.2 103.7 103.3 107.6 94.5 117.3 129 1 Employees only: excludes personnel in the Armed Forces. Capacity utilization: Based on data from Federal Reserve, McGraw- 2 Production workers only. Hill Hcononaics Department, and Department of Commerce. 3 F.R. index based on Census Bureau figures. Construction contracts: F. W. Dodge Co. monthly index of dollar 4 Prices are not seasonally adjusted. value of total construction contracts, including residential, nonresidential, and heavy engineering; does not include data for Alaska and Hawaii. NOTE.—All series: Data are seasonally adjusted unless otherwise noted. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Prices: Bureau of Labor Statistics data. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1970 1971 Type of ownership and 1968 1969 type of construction Aug. Sept. Oct. Nov. Dec, Jan. Feb. Mar. Apr. May June July Aug, Total construction i 61,732 67.425 6,229 5,398 5,453 5,144 4,974 4,383 4,993 6,386 7,743 7,555 8,077 7,670 7,712 By type of ownership: Public 19,597 22,656 2,078 1,869 2,023 1,937 1,688 1,464 1,578 1,722 2,074 2,065 2,795 2,683 Private i 42,135 44,769 4,151 3,529 3,430 3,208 3,286 2,919 3,415 4,663 5,669 5,489 5,489 4,987 By type of construction: Residential building i 24,838 25,219 2,349 2,176 2,301 1,947 2,045 1,631 1,819 2,729 3,168 3,310 3,485 3,357 3,255 Nonresidential building 22,512 25,667 2,331 1,943 1,862 1,701 1,693 1,711 1,654 2,199 2,080 -•2,264 2,800 2,621 2,120 Nonbuilding 14,382 16,539 1,549 1,278 1,289 1,497 11235 1,041 1,520 1,458 2,495 1,981 1,792 1,691 2,337 Private housing units authorized... 1,330 1,299 1,326 1,371 1,521 1,487 1,768 1,635 ••1,563 1,627 1,638 1,927 1,849 ••2,052 2,008 (In thousands, S.A., A.R.) 1 Because of improved collection procedures, data for 1-family homes NOTE.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap- data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Period Total NN ffaa oo rr nn mm -- Buildmgs Mili- High- C v o a n ti s o e n r - Total rreessii-- Total tary way & Other 2 ddeennttiiaall Total Indus- Com- b O u th il e d r - Other de m v e e n lo t p trial mercial ings 1 1962 3 59,667 41,798 24,292 17,506 2,842 5,144 3,631 5,889 17,869 1,266 6,365 1,524 8,714 19634 63,423 44,057 26,187 17,870 2,906 4,995 3,745 6,224 19,366 1,189 7,084 1,690 9,403 196 4 66,200 45,810 26,258 19,552 3,565 5,396 3,994 6,597 20,390 938 7,133 1,729 10,590 196 5 72,319 50,253 26,268 23,985 5,118 6,739 4,735 7,393 22,066 852 7,550 2,019 11,645 196 6 75,120 51,120 23,971 27,149 6,679 6,879 5,037 8,554 24,000 769 8,355 2.195 12,681 196 7 76,160 50,587 23,736 26,851 6,131 6,982 4,993 8,745 25,573 721 8,538 2.196 14,511 196 8 84,692 56,996 28,823 28,173 5,594 8,333 4,873 9,373 27,696 824 9,295 2,046 15,531 196 9 90,866 62,806 30,603 32,203 6,373 10,136 5,521 10,170 28,060 949 9,276 1,796 16,039 197 0 91,266 63,079 29,275 33,806 5,930 10,521 5,841 11,459 28,297 782 1970—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 30,043 882 105,014 75,378 39,219 36,154 5,472 12,214 6,098 12,370 29,641 844 May 105,201 75,556 40,480 35,076 5,017 11,988 6,062 12,009 29,645 875 June 105,476 76,181 40,378 35,803 4,547 12,790 6,513 11,953 29,253 822 July 105,916 76,771 40,776 35,995 4,445 13,286 6,455 11,809 29,145 967 Aug. 107,264 78,174 42,047 36,137 4,379 13,006 6,550 12,192 29,090 905 1 Includes religious, educational, hospital, institutional, and other build- 4 Beginning 1963, reflects inclusion of new series under "Public" (for ings. State and local govt, activity only). 2 Sewer and water, formerly shown separately, now included in "Other." 3 Beginning July 1962, reflects inclusion of new series affecting most NOTE.—Census Bureau data, monthly series at seasonally adjusted private nonresidential groups. annual rates. NEW HOUSING UNITS (In thousands) Units started Private (S.A., A.R.) Government Mobile Private and public underwritten home Period (N.S.A.) (N.S.A.) ship- Region Type of structure ments (N.S.A.) Total N e o a r s th t - C N e o n r t t r h a l South West fam 1- ily 2 fa - m to il 4 y - m 5- o r o e r - Total Private Public Total FHA VA family 196 2 1,463 264 290 531 378 991 471 1,492 1,463 30 339 261 118 196 3 1,610 261 328 591 431 1,021 589 1,642 1,610 32 292 221 151 196 4 1,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 191 196 5 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 216 196 6 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 217 196 7 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 240 196 8 1.508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 318 196 9 1,467 206 349 588 323 810 87 571 1,500 1,467 33 288 237 413 197 0 1,434 218 294 612 310 813 85 536 1,467 1,434 33 479 418 401 1970—Aug. 1,425 181 298 640 306 838 94 493 132 129 3 40 34 38 Sept. 1.509 198 262 673 376 881 122 506 133 131 2 40 34 41 Oct.. 1,583 227 331 649 376 890 87 606 143 141 2 46 40 41 Nov. 1,693 262 355 737 339 934 111 648 128 127 1 39 34 30 Dec. 2,054 234 427 916 477 1,240 102 712 124 121 3 69 63 27 1971—Jan.. 1,725 238 320 724 435 946 110 669 115 111 4 37 32 25 Feb. 1,754 238 292 745 479 985 110 659 105 102 3 32 27 28 Mar. 1,959 257 442 803 457 1,048 121 790 169 168 1 40 33 36 1,912 233 457 814 408 1,098 109 705 204 201 3 53 45 43 M^Y 1,975 271 362 855 487 1,124 111 740 204 199 5 49 41 41 June 2,000 231 393 868 508 1.177 120 703 197 194 3 55 46 47 July 2,215 301 455 876 583 1.178 136 901 196 193 3 52 43 45 Aug. 2,228 254 502 ,001 471 1,221 138 869 203 201 2 55 46 49 NOTE.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspecfor 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 Manufacturers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 66 EMPLOYMENT • OCTOBER 1971 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Total non- Total Unemploy- Period i p n o s p ti u tu la ti t o io n n a l lab N o o r t f i o n r ce l f a o b rc o e r Employed i m ra e te n 2 t (N.S.A.) (N.S.A.) (S.A.) Total Total In c n u o lt n u a r g al r i- In U pl n o e y m ed - (pe S r . c A e .) n t; industries agriculture 196 5 129,236 52,058 77,178 74,455 71,088 66,726 4,361 3,366 4.5 196 6 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 19673 133,319 52,527 80,793 77,347 74,372 70,527 3,844 2,975 3.8 196 8 135,562 53,291 82,272 78,737 75,920 72,103 3,817 2,817 3.6 196 9 137,841 53,602 84,239 80,733 77,902 74,296 3,606 2,831 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 1970—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 Aug. 142.886 54,433 87,087 84,312 79,197 75,782 3,415 5,115 6.1 Sept. 143,104 56,220 87,347 84,598 79,525 76,169 3,356 5,073 6.0 1 Includes self-employed, unpaid family, and domestic service workers. NOTE.—Bureau of Labor Statistics. Information relating to persons 16 2 Per cent of civilian labor force. years of age and over is obtained on a sample basis. Monthly data relate 3 Beginning 1967, data not strictly comparable with previous data. to the calendar week that contains the 12th day; annual data are averages Description of changes available from Bureau of Labor Statistics. of monthly figures. EMPLOYMENT IN NONAGRICULTURAL ESTABLISHMENTS, BY INDUSTRY DIVISION (In thousands of persons) Period Total M t a u n r u in fa g c - Mining c C o o n t n i s o t t r n r a u c c t - T t l i r i o c a n n u s & t p i li o p ti r u e t b a s - - Trade Finance Service G m ov e e n r t n - 196 5 60,815 18,062 632 3,186 4,036 12,716 3,023 9,087 10,074 196 6 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 196 7 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 196 8 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 196 9 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 197 0 70,616 19,369 622 3,345 4,504 14,922 3,690 11,630 12,535 SEASONALLY ADJUSTED 1970_Sept 70,480 19,235 620 3.274 4,518 14,931 3,698 11,666 12,538 Oct 70,082 18,669 621 3,284 4.517 14,946 3,706 11,722 12,617 Nov 69,985 18,517 624 3,294 4.506 14,902 3,721 11,750 12,671 Dec 70,313 18,796 623 3,302 4,450 14,952 3,731 11,776 12,683 1971—Jan 70,454 18,747 625 3,271 4.507 15,039 3,746 11,800 12,719 Feb 70,391 18,684 622 3,198 4,526 15,059 3,749 11,809 12,744 Mar 70,480 18,609 622 3,264 4,520 15,074 3,758 11,841 12,792 Apr 70,599 18,639 623 3,282 4,505 15,107 3,769 11,843 12,831 May 70,769 18,702 622 3.275 4.518 15,148 3,788 11,858 12,858 June 70,657 18,608 619 3,255 4,500 15,135 3,807 11,895 12,838 July 70,531 18,533 597 3,228 4,476 15,158 3,806 11,921 12,812 Aug.P 70,554 18,473 609 3,218 4,435 15,213 3,804 11,940 12,862 Sept.P 70,855 18,603 619 3,238 4,454 15,255 3,821 11,957 12,908 NOT SEASONALLY ADJUSTED 1970—Sep t 70,841 19.481 627 3,497 4,568 14,902 3.705 11,689 12,372 Oct 70,604 18,813 622 3,471 4,531 15,002 3,699 11,745 12,721 Nov 70,562 18,603 623 3,383 4,520 15,154 3.706 11,738 12,835 Dec 71,151 18,823 621 3,233 4,454 15,706 3,712 11,717 12,885 1971—Ja n 69,527 18,579 611 2,921 4,435 14,862 3,709 11,611 12,799 Feb 69,450 18,532 606 2,846 4,454 14,721 3,715 11,667 12,909 Mar 69,782 18,488 608 2,967 4,466 14,789 3,735 11,758 12,971 70,309 18.482 617 3,164 4,469 14,974 3,758 11,867 12,978 70,738 18,554 622 3,265 4,500 15,071 3,780 11,953 12,993 June 71,355 18,746 634 3,414 4,549 15,192 3,837 12,050 12,933 July 70,452 18,448 613 3,480 4,534 15,132 3,867 12,040 12,338 Aug. 70,571 18,672 625 3,508 4,493 15,141 3,865 11,988 12,279 Sept.P 71,200 18,843 626 3,458 4,503 15,224 3,829 11,981 12,736 NOTE.—Bureau of Labor Statistics; data include all full- and part- persons, domestic servants, unpaid family workers, and members of time employees who worked during, or received pay for, the pay pe- the Armed Forces are excluded. riod that includes the 12th of the month. Proprietors, self-employed Beginning with 1969, series has been adjusted to Mar. 1970 benchmark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted i Not seasonally adjusted i Industry group 1970 1971 1970 1971 Sept. July Aug.P Sept.f Sept. July Aug.^' Sept.^ 13,963 13,440 13,398 13,514 14,201 13,315 13,555 13,742 Durable goods 8,016 7,594 7,540 7,626 8,096 7,512 7,524 7,696 Ordnance and accessories 124 93 94 93 125 92 93 93 Lumber and wood products 487 500 502 508 498 516 520 519 Furniture and fixtures 377 380 375 383 380 371 378 386 Stone, clay, and glass products 506 496 499 502 518 508 514 514 Primary metal industries 1,055 965 906 912 1,046 976 910 905 Fabricated metal products 1,061 1,016 1,016 1,028 1,069 999 1,013 1,036 Machinery 1,288 1,156 1,161 1,177 1,282 1,151 1,148 1,172 Electrical equipment and supplies 1,254 1,169 1,167 1,196 1,269 1,153 1,171 1,209 Transportation equipment 1,269 1,244 1,242 1,244 1,298 1,181 1,188 1,264 Instruments and related products 271 257 259 263 271 255 259 263 Miscellaneous manufacturing industries 324 318 319 320 340 310 330 335 Nondurable goods 5,947 5,846 5,858 5,888 6,105 5,803 6,031 6,046 Food and kindred products 1,186 1,188 1,193 1,191 1,306 1,213 1,318 1,313 Tobacco manufactures 66 56 56 61 80 49 64 73 TTTeeexxxtttiiillleee---mmmiiillllll ppprrroooddduuuccctttsss 850 841 841 843 855 831 846 847 AAAppppppaaarrreeelll aaannnddd rrreeelllaaattteeeddd ppprrroooddduuuccctttsss 1,196 1,179 1,185 1,192 1,209 1,134 1,199 1,205 PPPaaapppeeerrr aaannnddd aaalllllliiieeeddd ppprrroooddduuuccctttsss 540 515 520 526 543 516 526 529 Printing, publishing, and allied industries 680 661 659 659 680 658 658 659 Chemicals and allied products 602 582 577 579 600 584 582 578 Petroleum refining and related industries 114 115 116 116 116 120 120 118 Rubber and misc. plastic products 442 450 448 462 446 443 451 466 Leather and leather products 271 259 263 259 270 255 267 258 I Data adjusted to 1970 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 worked i Average weekly earnings i Average hourly earnings i (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.; S.A.) Industry group 1970 1971 1970 1971 1970 1971 Sept. July Aug.?' Sept.?' Sept. July Aug.f Sept.f Sept. July Aug.f Sept.p 39.3 40.0 39.8 39.6 135.43 142.09 141.69 143.64 3.42 3.57 3.56 3.60 Durable goods 39.8 40.4 40.1 39.9 145.16 151.98 151.98 153.97 3.62 3.79 3.79 3.83 Ordnance and accessories 39.7 41.9 41.9 41.6 145.64 160.66 162.21 164.27 3.65 3.89 3.89 3.93 Lumber and wood products 39.5 40.5 40.5 40.3 120.99 128.88 130.56 131.54 3.04 3.19 3.20 3.24 Furniture and fixtures 38.3 40.1 40.0 39.4 108.92 115.53 118.67 117.60 2.80 2.91 2.93 2.94 SSttoonnee,, ccllaayy,, aanndd ggllaassss pprroodduuccttss 40.9 41.8 41.8 41.5 142.83 155.40 157.78 157.50 3.45 3.70 3.73 3.75 PPrriimmaarryy mmeettaall iinndduussttrriieess 41.0 40.6 39.2 39.5 166.87 170.53 167.78 171.04 4.07 4.19 4.28 4.33 Fabricated metal products 39.8 40.7 40.3 39.8 145.44 150.72 151.10 152.31 3.60 3.74 3.74 3.77 Machinery 40.1 40.7 40.7 40.3 152.76 161.20 161.60 163.62 3.80 4.00 4.02 4.05 EElleeccttrriiccaall eeqquuiippmmeenntt aanndd ssuupppplliieess 39.0 40.1 40.0 39.8 131.20 139.00 140.40 141.91 3.33 3.51 3.51 3.53 TTrraannssppoorrttaattiioonn eeqquuiippmmeenntt 39.8 39.5 40.0 39.1 167.26 172.97 172.18 175.08 4.14 4.39 4.37 4.41 Instruments and related products 39.4 39.8 39.6 39.9 135.38 140.23 140.26 144.32 3.41 3.55 3.56 3.59 Miscellaneous manufacturing industries... 38.1 39.2 39.2 38.7 108.77 113.48 115.25 115.14 2.84 2.94 2.94 2.96 Nondurable goods 38.6 39.3 39.3 39.1 122.15 129.63 129.17 130.35 3.14 3.29 3.27 3.30 Food and kindred products 40.0 40.5 40.6 40.8 130.56 137.63 135.86 137.61 3.20 3.39 3.33 3.34 Tobacco manufactures 36.4 39.6 37.3 37.5 108.29 130.87 119.57 119.50 2.88 3.33 3.18 3.08 Textile-mill products 38.9 40.3 40.6 39.9 96.19 102.66 105.01 103.86 2.46 2.56 2.58 2.59 AAppppaarreell aanndd rreellaatteedd pprroodduuccttss 34.1 35.8 35.8 35.5 83.45 88.43 89.89 89.71 2.44 2.47 2.49 2.52 PPaappeerr aanndd aalllliieedd pprroodduuccttss 41.5 42.4 42.5 42.0 147.97 157.30 158.90 158.20 3.54 3.71 3.73 3.74 Printing, publishing, and allied industries. 37.4 37.6 37.5 37.5 151.18 158.30 159.47 161.78 4.01 4.21 4.23 4.28 Chemicals and allied products 42.0 41.4 41.5 41.8 159.18 164.79 164.79 168.04 3.79 3.99 3.99 4.02 Petroleum refining and related industries . 43.5 42.6 43.4 43.8 187.92 197.80 195.96 204.52 4.33 4.60 4.60 4.68 Rubber and misc. plastic products 40.0 40.3 40.2 40.1 132.03 137.94 139.38 141.69 3.26 3.44 3.45 3.49 Leather and leather products 36.6 37.7 37.5 37.5 90.50 98.56 97.13 96.83 2.50 2.58 2.59 2.61 1 Data adjusted to 1970 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 • OCTOBER 1971 CONSUMER PRICES (1967 = 100) Housing Health and recreation Fur- AAppppaarreell TTrraannss-- PPeerriioodd iitt AA eemm llll ss FFoooodd Total Rent H ow s o h n m i e p e r - - c F a o o u n i a d e l l l t e r G a i l c n e a i c d s t - y o n i p a n i n e s g r d h s a - - uupp aa kk nn ee dd ee pp pp tt oo ii rr oo tt nn aa -- Total M c ic a e a r d e l - s c P o a e n r r e a - l r R e a i e c n n r a g d e d a - - g O s a o e t n h o r d v 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 "io.'s' "8i.'4' 44.8 "44.'2* "37;6' "4U2 "AYJ "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 197Q-AU8 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 July 121.8 119.8 124.5 115.4 133.5 117.5 114.7 118.9 119.3 119.5 122.6 129.3 117.1 119.6 121.2 Aug 122.2 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 120.1 123.1 130.0 117.5 119.7 121.8 NOTE.—Bureau of Labor Statistics index for city wage-earners and clerical workers. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities PPrroo-- PPeerriioodd mm cc tt AA oo oo iiee mm ll dd ss ll ii -- -- pp FF uu rr aa cc oo rr tt dd mm ss -- 1111 cc ff ff ee oo ee aa ss oo ee nn ss dd dd dd ee ss ss dd Total t T e il e t e c x s . - , H e id tc 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 b r . , - L b e u e t m c r . , - P e a t p c e . r, M e a t l e s c t , . - e c m M a q e h n e r u a i y n d n i - p - t - F t u e u t r r c n e . , 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 r q o i a e o u r n n n t ip a s t ! - - - n c M e e o i ll s u a - s - 1960. 94.9 97.2 89.5 95.3 99.5 90.8 96.1 101.8 103.1 95.3 98.1 92.4 92.0 99.0 97.2 93.0 1961. 94.5 96.3 91.0 94.8 97.7 91.7 97.2 100.7 99.2 91.0 95.2 91.9 91.9 98.4 97.6 93.3 1962. 94.8 98.0 91.9 94.8 98.6 92.7 96.7 99.1 96.3 91.6 96.3 91.2 92.0 97.7 97.6 93.7 1963. 94.5 96.0 92.5 94.7 98.5 90.0 96.3 97.9 96.8 93.5 95.6 91.3 92.2 97.0 97.1 94.5 1964. 94.7 94.6 92.3 95.2 99.2 90.3 93.7 98.3 95.5 95.4 95.4 93.8 92.8 97.4 97.3 95.2 1965. 96.6 98.7 95.5 96.4 99.8 94.3 95.5 99.0 95.9 95.9 96.2 96.4 93.9 96.9 97.5 95.9 1966. 99.8 105.9 101.2 98.5 100.1 103.4 97.8 99.4 97.8 100.2 98.8 98.8 96.8 98.0 98.4 97.7 1967. 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968. 102.5 102.5 102.2 102.5 103.7 103.2 98.9 99.8 103.4 113.3 101.1 102.6 103.2 102.8 103.7 102.2 1969. 106.5 109.1 107.3 106.0 106.0 108.9 100.9 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 ibb'.s 105.2 1970. 110.4 111.0 112.0 110.0 107.2 110.1 105.9 102.2 108.6 113.7 108.2 116.7 111.4 107.5 113.3 104.5 109.9 1970—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 Aug 114.9 113.2 115.4 115.1 109.7 114.4 114.8 104.3 109.8 134.6 110.6 121.1 116.1 110.2 124.2 110.5 113.0 Sept 114.5 110.5 114.6 115.0 109.7 114.7 115.3 104.3 109.7 134.3 110.6 121.1 116.0 110.2 124.2 109.6 113.0 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • PRICES A 69 WHOLESALE PRICES: DETAIL (1967= 100) 1970 1971 1970 1971 GGrroouupp GGrroouupp Sept. July Aug. Sept. Sept. July Aug. Sept Farm products: Pulp, paper, and allied products: Fresh and dried produce 111.6 109.3 115.9 103.6 Pulp, paper and products, excluding Grains 109.0 102.5 92.8 89.0 building paper and board 108.6 110.8 110.8 110.8 Livestock 113.6 121.3 121.3 119.1 Woodpulp 111.8 112.4 112.4 111.5 Live poultry 99.8 121.1 100.8 102.8 Wastepaper 115.2 111.8 112.8 114.5 Plant and animal fibers 90.0 92.6 93.4 95.2 Paper 111.5 114.6 114.7 114.7 Fluid milk 115.1 119.5 119.3 119.2 Paperboard 100.9 102.8 102.8 102.8 Eggs 139.5 89.4 110.1 107.8 Converted paper and paperboard... 108.0 110.1 110.1 110.2 Hay and seeds 102.5 114.4 114.3 108.9 Building paper and board 101.0 103.6 104.3 104.5 Other farm products 119.2 113.3 113.9 115.6 Processed foods and feeds: Metals and metal products: Cereal and bakery products 109.2 111.5 111.4 111.3 Meat, poultry, and fish 115.1 119.6 117.7 117.5 IIrroonn aanndd sstteeeell 116.7 121.9 125.3 125.6 Dairy products 111.4 116.2 115.4 115.4 Steelmill products 116.0 123.4 128.1 128.2 Processed fruits and vegetables 112.0 115.9 116.2 115.7 Nonferrous metals 122.7 116.9 117.1 116.5 Sugar and confectionery 118.2 119.4 120.5 119.8 Metal containers 112.7 123.0 124.2 124.2 Beverages and beverage materials.... 114.1 115.9 116.1 116.0 Hardware 112.5 116.7 117.7 117.7 Animal fats and oils 141.5 135.7 144.0 136.5 Plumbing equipment 114.9 117.9 118.3 118.3 Crude vegetable oils 116.2 136.7 147.5 135.6 Heating equipment 112.0 115.9 116.8 116.7 Refined vegetable oils 113.5 135.5 140.7 133.6 Fabricated structural metal products 113.6 118.2 119.6 120.3 Vegetable oil end products 112.3 122.8 124.6 123.3 Miscellaneous metal products 116.9 119.3 119.8 119.9 Miscellaneous processed foods 115.2 113.8 113.8 113.0 Manufactured animal feeds 107.1 106.9 104.7 101.3 Textile products and apparel: Machinery and equipment: Cotton products 105.7 111.9 112.5 112.2 Agricultural machinery and equip... 113.1 117.4 117.5 117.5 Wool products 98.7 92.6 92.7 92.5 Construction machinery and equip.. 115.4 121.6 121.9 121.8 Manmade fiber textile products 100.7 101.9 103.1 103.1 Metalworking machinery and equip. 114.3 117.7 118.1 118.0 Apparel 112.0 113.3 113.6 113.8 General purpose machinery and Textile housefurnishings 105.0 104.8 104.8 104.1 eeqquuiippmmeenntt 115.0 119.8 120.3 120.2 Miscellaneous textile products 109.1 119.9 117.2 119.8 SSppeecciiaall iinndduussttrryy mmaacchhiinneerryy aanndd eeqquuiippmmeenntt 116.4 121.6 121.6 121.7 Hides, skins, leather, and products: E M E M ll ii ee ss cc cc tt ee rr ll ii ll cc aa aa nn ll ee mm oouu aa ss cc hh mm iinn aa ee cc rr hh yy ii nn aa ee nn rr dd yy eeqquuiipp 1 1 0 1 7 3 . . 5 4 1 1 0 1 9 7 . . 5 3 1 1 0 1 9 8 . . 9 0 1 1 1 0 7 9 . . 8 7 Hides and skins 99.6 114.0 114.6 117.7 Leather 105.9 114.4 114.4 113.4 O Fo th o e tw r e le a a r t her products 1 1 1 0 3 6 . . 7 8 1 1 1 0 6 8 . . 8 2 1 1 1 0 7 8 . . 1 2 1 1 1 0 7 9 . . 1 0 Furniture and household durables: Household furniture 112.0 115.3 115.5 115.6 Fuels and related products, and power: Commercial furniture 115.6 118.1 118.2 118.2 C C E G l o o a e s a k c l e t f r u ic e ls p ower 1 1 1 1 0 2 0 6 5 5 6 0 . . . . 9 9 4 0 1 1 1 1 1 5 0 8 3 0 7 2 . . . . 5 5 7 9 1 1 1 1 5 1 0 8 0 5 2 7 . . . . 5 3 9 2 1 1 1 1 1 5 0 8 0 6 8 2 . . . . 5 4 9 4 O H H Fl o t o o h u m o e s r e r e c h h e o o o le v u ld c e s t r e r i a o n h p g n o p s i l c l d i a e n d q c u u e r i s a p b m le e n g t oods.... 1 1 9 9 0 1 3 9 5 6 . . . . 5 1 8 3 1 1 9 9 2 0 3 8 1 7 . . . . 9 2 6 0 1 1 9 9 0 2 7 4 2 7 . . . . 6 0 1 4 1 1 9 9 2 0 3 7 2 7 . . . . 1 8 6 6 Crude petroleum 104.8 113.2 113.2 113.2 Petroleum products, refined 101.6 107.2 107.3 107.3 Nonmetallic mineral products: Chemicals and allied products: FFFlllaaattt ggglllaaassssss 116.4 122.5 124.3 124.3 Industrial chemicals 101.3 102.4 102.4 102.4 CCCooonnncccrrreeettteee iiinnngggrrreeedddiiieeennntttsss 115.8 123.3 124.0 124.1 Prepared paint 112.4 115.9 115.9 115.9 CCCooonnncccrrreeettteee ppprrroooddduuuccctttsss 113.6 121.5 122.8 122.6 Paint materials 100.2 99.8 99.8 99.7 SSStttrrruuuccctttuuurrraaalll ccclllaaayyy ppprrroooddduuuccctttsss eeexxxcccllluuudddiiinnnggg Drugs and pharmaceuticals 100.9 102.6 102.7 102.6 rrreeefffrrraaaccctttooorrriiieeesss 110.5 114.5 114.9 114.9 Fats and oils, inedible 127.9 130.8 134.2 132.9 RRReeefffrrraaaccctttooorrriiieeesss 119.7 126.9 126.9 126.9 Agricultural chemicals and products.. 89.0 93.4 91.0 91.0 AAAsssppphhhaaalllttt rrroooooofffiiinnnggg 101.4 131.2 131.2 131.2 Plastic resins and materials 91.1 88.6 89.0 89.5 GGGyyypppsssuuummm ppprrroooddduuuccctttsss 96.5 112.7 114.3 114.5 Other chemicals and products 109.4 112.5 112.4 112.4 GGGlllaaassssss cccooonnntttaaaiiinnneeerrrsss 119.6 131.5 131.5 131.5 Other nonmetallic minerals 112.5 125.6 125.7 125.7 Rubber and plastic products:^ Crude rubber 100.4 98.8 99.6 99.3 Tires and tubes 112.0 111.2 111.4 110.8 TTrraannssppoorrttaattiioonn eeqquuiippmmeenntt:: Miscellaneous rubber products 116.5 118.7 119.3 119.8 Plastic construction products (Dec. Motor vehicles and equipment 107.3 114.7 114.9 113.8 1969 = 100) 95.5 94.0 94.1 94.7 RRaaiillrrooaadd eeqquuiippmmeenntt 115.3 121.5 122.5 122.5 Unsupported plastic film and sheeting (Dec. 1970=100) 100.6 100.1 100.0 Laminated sheets, high pressure (Dec. 1970=100) 99.7 98.6 98.6 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition 110.0 112.6 112.6 112.6 Lumber 114.5 142.5 146.7 146.8 Tobacco products 117.0 116.6 116.8 116.8 Millwork 115.6 122.8 123.8 123.7 Notions 109.0 111.7 111.7 111.7 Plywood 110.9 111.7 120.5 119.1 Photographic equipment and supplies 105.7 106.2 106.3 106.3 Other wood products 117.1 119.0 118.9 118.9 Other miscellaneous products 109.9 112.4 112.9 112.9 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 • OCTOBER 1971 GROSS NATIONAL PRODUCT (In billions of dollars) 1970 1971 Item 1929 1933 1941 1950 1966 1967 1968 1969 1970 II III IV I II 103.1 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 968.5 983.5 988.4 1,020.8 1,043.1 101.4 57.2 120.1 278.0 735.1 785.7 857.1 921.7 971.3 966.5 978.4 984.7 1,017.6 1,037.4 77.2 45.8 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.7 644.6 660.9 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 97.6 100.8 Nondurable goods 37.7 22.3 42.9 98.1 206.9 215.0 230.8 247.6 264.7 262.9 265.5 270.9 272.0 279.8 30.3 20.1 28.1 62.4 188.6 204.0 221.3 242.1 262.5 260.2 265.0 268.9 275.0 280.4 16.2 1.4 17.9 54.1 121.4 116.6 126.0 137.8 135.3 134.1 138.6 137.3 143.8 152.4 14.5 3.0 13.4 47.3 106.6 108.4 118.9 130.4 132.5 132.1 133.5 133.6 140.6 146.7 10.6 2.4 9.5 27.9 81.6 83.3 88.8 98.6 102.1 102.1 104.8 100.8 104.3 107.0 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 38.2 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 68.8 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 39.7 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 39.1 Change in business inventories 1.7 -l'.6 4.5 6.8 14.8 8.2 7.1 7.4 2.8 2.1 5.1 3.7 3.2 5.7 Nonfarm 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 5.2 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 -.5 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 66.4 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 66.9 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 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 95.7 National defense 13.8 14.1 60.7 72.4 78.3 78.4 75.4 75.1 74.2 73.2 73.0 71.8 Other 3.1 4.3 17.1 18.4 20 5 20 7 21 9 21 6 21 9 22 7 23 7 23 9 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 13l'.5 134! 5 Gross national product in constant (1958) dollars 203.6 141.5 263.7 355.3 658.1 675.2 706.6 724.7 720.0 721.1 723.3 715.9 729.7 738.4 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) 1970 1971 11992299 11993333 11994411 11995500 11996666 11996677 11996688 11996699 11997700 IItteemm II III IV I II National income 86.8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 828.3 844.5 Compensation of employees 51.1 29.5 64.8 154.6 435.5 467.2 514.6 565.5 601.9 598.5 606.5 609.3 627.9 639.5 Wages and salaries 50.4 29.0 62.1 146.8 394.5 423.1 464.9 509.6 541.4 538.5 545.2 547.2 562.3 572.4 Private 45.5 23.9 51.9 124.4 316.8 337.3 369.2 405.5 426.6 424.4 429.4 429.9 441.2 449.8 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 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 .7 .5 2.7 7.8 41.0 44.2 49.7 56.0 60.5 60.0 61.3 62.1 65.7 67.1 Employer contributions for social in- .1 .1 2.0 4.0 20.3 21.9 24.3 27.8 29.6 29.5 30.1 30.1 33.1 33.7 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 66.0 66.7 9.0 3.3 11.1 24.0 45.2 47.3 49.5 50.3 51.0 51.0 51.4 51.5 51.2 51.5 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 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 75.5 78.3 10.0 1.0 17.7 42.6 84.2 79.8 87.6 84.2 75.4 75.8 78.5 71.6 79.1 83.3 Profits tax liability 1.4 .5 7.6 17.8 34.3 33.2 39.9 39.7 34.1 34.5 35.6 32.3 36.2 37.4 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 42.9 46.0 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 17.3 20.5 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 -5.1 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
OCTOBER 1971 • NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1970 1 1971 IItteemm 1929 1933 1941 1950 1966 1967 1968 1969 1970 1 II III IV i I II 1 i Gross national product 103.1 55.6 124.5 284.8 749.9 793.9 864.2 929.1 974.1 i 968.5 983.5 988.41,020.8 1,043.1 Less: Capital consumption allowances 7.9 7.C 8.2 18.3 63.9 68.9 74.5 81.1 87.6i 86.9 88.2 89.8 95.6 97.3 Indirect business tax and nontax liability 7.0 7.1 11.3 23.3 65.7 70.4 78.6 85.7 92.9 i 91.9 94.2 95.8 99.3 101.7 Business transfer payments .6 .8 3.0 3.1 3.4 3.7 3.9! 3.9 4.0 4.r 4.2 4.2 Statistical discrepancy •7 .6 .A 1.5 -1.0 -.7 -2.7 -4.1 : -4.5; -5.8 -3.2 -1.6 -4.9 -4.0 Plus: Subsidies less current surplus of gov- i ernment enterprises . 1 .2 2.3 1.4 1.1 j 1^7 1.8 1.9 1.7 1.6 ^ 7 Equals: National income 86.8 40.3 104.2 241.1 620.6 653.6 711.1 763.7 795.9 793.4 802.2 802.1 828.3 844.5 Less: 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 75.5 78.3 Contributions for social insurance , 2 2.8 6.9 38.0 42.4 47.1 54.0 57.6 57.4 58.4 58.5' 63.9 65.0 Excess of wage accruals over disbursements —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 92.2 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 31.7 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 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 96.0 227.6 587.2 629.3 688.9 750.3 803.6 803.8 809.8 816.7 834.3 854.8 Less: Personal tax and nontax payments 2.6 1.5 3.3 20.7 75.4 83.0 97.9 116.2 115.9 118.0 113.5 115.2 112.7 114.0 Equals: Disposable personal income 83.3 45.5 92.7 206.9 511.9 546.3 591.0 634.2 687.8 685.7 696.2 701.5 721.6 740.8 Less: Personal outlays 79.1 46.5 81.7 193.9 479.3 506.0 551.2 596.3 633.7 631.5 638.9 643.0 663.2 679.9 Personal consumption expenditures. 77.2 45.8 80.6 191.0 466.3 492.1 536.2 579.6 615.8 613.8 620.9 624.7 644.6 660.9 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 foreigners .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 58.4 60.9 Disposable personal income in constant (1958) dollars 150.6 112.2 190.3 249.6 458.9 477.5 499.0 513.5 531.5 533.0 536.0 532.5 542.7 551.8 NOTE.—Dept. of Commerce estimates. Quarterly data are seasonally adjusted totals at annual rates. See also NOTE to table opposite. PERSONAL INCOME (In billions of dollars) 1970 1971 IItteemm 11996699 11997700 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.f Total personal income 750.3 803.6 809.0 814.9 813.6 815.7 820.9 830.0 833.2 839.7 844.4 850.0 870.1 859.2 868.0 Wage and salary disbursements 509.6 541.4 545.1 548.7 544.2 545.9 551.5 559.2 561.5 566.1 569.0 573.3 574.8 574.7 581.3 Commodity-producing industries. . 197.4 200.7 201.6 201.3 196.6 196.6 202.1 202.8 202.5 204.3 205.4 207.1 207.5 206.2 207.1 Manufacturing only 157.6 158.3 158.9 159.0 153.8 153.2 158.4 159.4 159.2 160.2 160.6 162.0 162.4 161.4 162.0 Distributive industries 120.0 129.1 130.8 131.3 131.9 132.2 131.4 134.2 135.4 136.8 137.6 138.7 138.6 138.6 140.2 Service industries 88.1 96.7 97.2 97.8 98.8 99.8 100.4 101.9 102.4 103.3 103.9 105.0 105.7 106.3 107.3 Government 104.1 114.8 115.5 118.3 116.8 117.3 117.7 120.3 121.2 121.6 122.1 122.6 123.0 123.6 126.7 Other labor income 28.2 30.8 31.2 31.4 31.7 32.0 32.2 32.4 32.6 32.8 33.1 33.4 33.7 33.9 34.1 Proprietors' income 67.1 66.8 66.0 65.3 65.7 65.9 66.1 65.9 65.9 66.2 66.5 66.7 66.9 67.8 68.8 Business and professional 50.3 51.0 51.4 51.4 51.5 51.4 51.5 51.2 51.1 51.3 51.4 51.5 51.6 51.7 51.8 Farm 16.8 15.8 14.6 13.9 14.2 14.5 14.6 14.7 14.8 14.9 15.1 15.2 15.3 16.1 17.0 Rental income 22.6 23.3 23.4 23.5 23.5 23.7 23.8 23.9 23.5 24.0 24.1 24.2 24.3 24.4 24.5 Dividends 24.4 25.0 25.2 25.4 25.4 25.5 23.9 25.6 25.7 25.5 25.5 25.6 25.2 25.6 25.7 Personal interest income 58.8 64.7 65.6 66.3 66.5 66.7 66.8 66.9 67.0 67.0 67.3 67.5 67.5 68.1 68.6 Transfer payments 65.9 79.6 80.8 82.9 84.7 84.5 85.1 86.8 87.8 89.1 89.8 90.5 109.0 96.2 96.5 Less: Personal contributions for social insurance 26.3 28.0 28.3 28.5 28.2 28.3 28.6 30.7 30.8 31.1 31.1 31.3 31.4 31.5 31.6 Nonagricultural income 727.7 781.4 788.1 794.2 792.5 795.0 800.5 808.7 811.6 818.0 822.5 827.9 848.0 836.4 844.2 22.6 22.2 20.9 20.7 21.1 20.7 20.4 21.3 21.5 21.7 21.9 22.1 22.1 22.9 23.7 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 SECOND QUARTER 1971 (Seasonally adjusted annual rates; in billions of dollars) HO 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.i nonbank world ancy savings I holds 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 1 Gross saving 187.3 94.0 -7.3 274.1 -26.7 6.1 3.5 2.5 3.7 257.2 253.5 .. 2 Capital consumption. 94.7 83.4 . 178.1 2.6 1.0 1.5 . 180.7 180.7 .. 3 Net saving (1-2) 92.7 10.6 -7!3 . 96.0 -26.7 3.5 2.4 1.0 '^7 . 76.5 72.9 .. 4 Gross investment (5+10) 1M.2 . 82.0 -13.6 262.6 . -30.7 9.2 4.4 4.6 12.3 253.3 3.9 240.9 5 Private capital expenditures.. 131.4 . 120.0 . 251.4 . 1.8 . 1.0 . 253.2 . 4.0 . 253.2 .. o 6 Consumer durables 100.8 . 100.8 . 100.8 . 100.8 .. 7 Residential construction.. 24.9 . I4!8! 39.7 . 39.7 . 39.7 .. 8 Plant and equipment 5.8 . 99.5 . 105.3 . 1.8 . 1.0 . 107.0 . 107.0 .. 9 Inventory change 5.7 . 5.7 . 5.7 . 5.7 .. 10 Net financial investment (11-12). ezA -38.1 -13.6 11.1 -30.7 7.4 .1 3.7 3.7 12.3 .1 -.1 -12.3 . 10 11 Financial uses 106.6 . 21.9 131.8 20.8 131.4 -5.6 62.0 74.2 23.2 307.2 10.9 o 12 Financial sources 43.8 59.9 17.0 120.7 51.5 123.9 58.4 70.5 10.9 307.1 DO 13 Gold, SDK's, and official fgn. exchange. -1.3 . -1.3 . 2.6 -.7 -.7 -.7 m 14 Treasury currency and SDR ctfs .7 . .7 . .7 15 Demand deposits and currency. .... 38.0 5.5 32.4 33.7 38.0 15 ^ 16 Private domestic 15.6 . 4.9 . -2.3 . 18.2 . -.3 21.2 6.2 15.1 17.9 21.2 3.3 . 17 U.S. Government 15.9 . 16.9 -.5 17.4 15.9 16.9 1.0 . 1? 2 18 Foreign -.2 -.1 -.2 . -.2 18 ^ 19 Time and savings accounts. 67.8 ... 68.7 . 1.8 73.3 73.3 19 20 At commercial banks 26.0 ... -1.5 . 2.4 . 26.9 . .3 30.0 30.0 .3 .. '2.6 30.0 20 21 At savings institutions... 41.8 ... 41.8 . 1.5 43.3 1.5 43.3 43.3 21 22 Life insurance reserves 4.9 ... 4.9 . .1 4.8 4.9 22 23 Pension fund reserves 23.5 ... 23.5 . 4.0 19.5 19.5 .... 23.5 23 24 Interbank items -4.6-4.6 -.6-3.8 -4.0 -. -4.6-4 24 25 Corporate shares -3.1 .. ... 16.4 -3.1 16.4 19.5 -.5 -.3 19.5 -.2 .5 16.4 25 26 Credit market instruments 1.8 39.0 6.5 49.7 3.0 16.5 11.2 105.2 4.4 47.7 112.0 -.3 -5.7 1.9 . 60.6 55.1 -1.5 30.8 5. 158.5 158.5 27 U.S. Government securities... -4.5 .. 6.0 .. .3 1.8 47.8 17.9 .7 -2.7 2.2 . 15.6 . 2.8 . 28.8 ... 48.5 27 28 State and local obligations -1.4 .. 3.4 .. .2 16!3 2.3 16.3 14.0 13.4 . .6 . ... 16.3 28 29 Corporate and foreign bonds.. 7.8 .. ... 22.1 2.5 10.3 22.1 16.0 2.9 1.5 14.5 -.2 1.1 ... 26.0 29 30 Home mortgages -1.0 22.7 ... 2.0 -1.0 24.7 -.1 29.4 3.8 5.4 . 7.0 . 17.0 ... 28.4 30 31 Other mortgages .9 1.4 ... 18.9 20.4 .4 , 19.1 1.4 . 3.4 . 14.3 . ... 20.4 31 32 Consumer credit .... 9.0 2.5 ... 2.5 9.0 6.5 4.1 . 2.5 . ... 9.0 32 33 Bank loans n.e.c .... 4.7 ... 5 10.6 15.1 2.2 15.1 . 2.2 2.3 ... 15.1 33 34 Other loans .... 1.2 -5.5 -5^5 2.2 -6.0- -.3 . .6 •3:5-10.0 2.3 2.5 ... -5.2 34 35 Security credit -1.2 3.8 -1.2 1.8-3.5 2.6 -3.5 -.4 -.1 .2 35 36 To brokers and dealers -1.2 . -1.2 . -2.0-3.5 -1.8 . -.2 -3.5 -.4 ... -3.5 36 37 To others 3.8 1.0 . 2.8 -A ... 3.8 37 38 Taxes payable .. 5.8 .2 5.8 5.8 ... -.5 6.0 5.3 -.7 . 38 39 Trade credit *-6.5 *-5.4 -3.3 -1.3 -3.5-5.7 -2.3 . 39 40 Equity in noncorporate business... -5.8 . . -5.8 -5.8-5. .... -5.8 40 41 Miscellaneous claims 3.2 12.0 15.2 .6 -.1 1.3 -2.1 .3 -.4 6.2-3.5 -5.1 8.7 -11.7 4.8 3.4 -1.4 . 41 42 Sector discrepancies (1-4). 12.1 . 6.3 . 11.5 . 4.1 . -3.1 -1.0 .. -2.1 .. 8.6 . 3.9 . 3.9 . 12.7 . 1 Commercial banks and unconsolidated affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • 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 TTrraannssaaccttiioonn ccaatteeggoorryy,, oorr sseeccttoorr 1966 1967 1968 1969 1970 II III IV I II III IV I II Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors 68.5 83.5 96.9 90.4 97.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.5 175.7 1 2 U.S. Government 3.5 13.0 13.4 -3.6 12.8 -9.5 -.7 1.2 3.0 16.0 12.2 20.0 -1.6 47.7 2 3 Public debt securities 2.3 8.9 10.3 -1.3 12.9 -8.8 4.9 4.9 3.5 18.1 11.4 18.5 1.4 48.0 3 4 Budget agency issues 1.2 4.1 3.1 -2.4 -•1 -.7 -5.6 -3.7 -.5 -2.0 .8 1.5 -2.9 -.2 4 5 All other nonfinancial sectors.. 64.9 70.5 83.5 94.1 84.7 103.0 89.1 85.7 78.3 87.7 82.4 90.6 114.0 128.0 5 6 Corporate equity shares .9 2.4 -.7 4.8 6.8 3.6 6.0 9.2 5.9 6.0 5.4 9.9 9.2 16.9 6 7 Debt instruments 64.0 68.1 84.2 89.3 77.9 99.5 83.2 76.4 72.4 81.7 77.1 80.7 104.8 111.1 7 8 Debt capital instruments 39.0 46.6 50.9 49.1 58.8 51.5 45.2 42.5 45.6 54.6 60.0 74.7 82.4 84.5 8 9 State'and local govt, sees 5.7 8.7 9.6 8.1 •11.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 16.3 9 10 Corporate and fgn. bonds... 11.0 15.9 14.0 13.1 21.1 13.3 12.1 11.1 15.0 22.4 22.2 24.8 25.0 23.2 10 11 Mortgages 22.3 22.0 27.3 27.9 25.8 28.8 27.5 26.7 21.7 22.0 28.9 30.7 31.8 45.0 11 12 Home mortgages 11.4 11.6 15.2 15.7 12.8 16.6 15.7 13.9 10.7 11.1 15.2 14.1 15.0 24.7 12 13 Other residential 3.1 3.6 3.5 4.8 5.9 4.7 4.8 5.6 4.6 5.4 6.5 6.9 7.3 10.2 13 14 Commercial 5.7 4.7 6.6 5.5 5.4 5.1 5.3 5.8 4.8 4.2 5.2 7.5 7.3 9.0 14 15 Farm 2.1 2.1 2.1 1.9 1.8 2.3 1.8 1.5 1.5 1.4 2.1 2.1 2.2 1.2 15 16 Other private credit 25.0 21.6 33.3 40.2 19.2 47.9 38.0 33.9 26.7 27.0 17.0 6.0 22.4 26.6 16 17 Bank loans n.e.c 10.3 9.6 13.4 15.7 2.7 19.1 11.7 14.2 7.6 9.0 1.9 -7.6 4.5 12.9 17 18 Consumer credit 7.2 4.6 11.1 9.3 4.3 10.8 8.9 7.5 4.8 6.1 6.2 .2 4.0 9.0 18 19 Open market paper 1.0 2.1 1.6 3.3 3.8 4.7 2.7 1.0 5.0 2.2 .5 7.5 2.9 -3.8 19 20 Other 6.4 5.2 7.3 11.8 8.4 13.3 14.6 11.2 9.4 9.8 8.4 5.9 10.9 8.4 20 21 By borrowing sector— 64.9 70.5 83.5 94.1 84.7 103.0 89.1 85.7 78.3 87.7 82.4 90.6 114.0 128.0 21 22 Foreign 1.5 4.1 3.0 3.7 2.6 6.0 2.3 2.4 2.6 1.7 2.2 4.0 5.0 6.4 22 23 State and local governments 6.4 8.8 9.9 8.5 12.2 9.7 5.8 5.1 9.4 10.4 9.7 19.5 26.0 16.5 23 24 Households 23.2 19.7 31.8 32.2 21.6 36.0 31.5 28.2 22.8 21.5 24.8 17.2 23.7 39.0 24 25 Nonfinancial business 33.8 37.9 38.8 49.7 48.3 51.3 49.4 49.9 43.4 54.2 45.7 50.0 59.4 66.1 25 26 Corporate 24.9 29.3 30.3 39.1 38.8 41.1 37.4 41.0 36.9 45.2 33.6 39.2 46.6 52.1 26 27 Nonfarm noncorporate 5.5 5.0 5.8 7.4 6.3 6.6 8.7 6.4 3.5 5.2 8.7 7.7 8.2 9.8 27 28 Farm 3.5 3.5 2.7 3.2 3.2 3.6 3.3 2.5 3.0 3.8 3.3 3.1 4.6 4.3 28 Funds advanced directly in credit markets 1 Total funds raised 68.5 83.5 96.9 90.4 97.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.5 175.7 1 Advanced directly by— 2 U.S. Government 4.9 4.6 4.9 2.5 3.2 1.7 3.7 2.3 3.9 3.6 3.5 1.8 4.3 4.4 2 3 U.S. Govt, credit agencies, net... .3 .5 -.2 .2 1.2 -.8 -.1 1.5 -.7 1.6 .9 3.0 2.1 -6.4 3 4 Funds advanced 5.1 —. 1 3.2 9.0 9.9 7.6 10.5 14.1 13.7 7.1 8.7 10.1 .3 -5.7 4 5 Less funds raised in cr. mkt 4.8 -.6 3.5 8.8 8.7 8.4 10.6 12.5 14.4 5.5 7.8 7.0 -1.8 .7 5 6 Federal Reserve System 3.5 4.8 3.7 4.2 5.0 4.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 1.9 6 7 Commercial banks, net 16.7 36.6 39.5 12.2 31.3 29.3 -.9 12.1 1.0 23.3 63.6 37.3 39.3 59.6 7 8 Funds advanced 16.8 36.9 39.7 16.5 29.5 33.8 4.2 18.9 10.1 27.4 52.1 28.4 36.7 59.8 8 9 Less funds raised .1 .2 .2 4.3 -1.8 4.5 5.0 6.8 9.1 4.1 -11.6 -8.9 -2.6 .2 9 10 Private nonbank finance 25.9 34.4 34.2 30.1 38.9 39.6 25.6 24.4 25.3 42.4 42.0 45.8 71.0 82.5 10 11 Savings institutions, net 7.8 16.8 14.6 10.4 14.7 13.3 6.8 5.6 4.7 15.3 18.0 20.7 45.4 50.0 11 12 Insurance 19.3 18.7 22.0 21.8 24.9 27.5 20.6 19.5 23.2 27.1 24.1 25.3 29.5 34.5 12 13 Finance n.e.c., net -1.3 -1.1 -2.5 -2.1 -.7 -1.2 -1.8 -.7 -2.6 • » -.3 -3.9 -1.9 13 14 Foreign -1.8 2.8 2.5 1.3 10.9 1.0 5.1 -1.1 9.4 9.5 4.9 19.6 27.3 30.5 14 15 Private domestic nonfinancial.... 19.1 -.2 12.3 39.8 7.1 18.9 55.5 38.4 41.2 17.9 -27.9 -2.5 -47.7 3.1 15 16 Business 3.6 -.2 7.4 13.8 -1.0 14.1 18.1 7.0 15.1 12.3 -28.5 -2.9 1.2 6.5 16 17 State and local governments... 3.4 2.1 .4 6.1 -3.8 2.9 7.7 5.6 -2.5 -5.3 -7.8 .4 1.8 3.0 17 18 Households 11.9 * 5.8 18.3 10.6 1.7 26.4 25.3 24.8 8.8 8.1 .5 -51.1 -1.4 18 19 Less: Net security credit -.2 2.2 1.4 -1.6 -1.4 -.2 -3.2 -.4 -3.8 -2.1 -.2 .6 -.5 5.0 19 Sources of funds supplied to credit markets Total borrowing 1 by nonfinancial sectors 68.5 83.5 96.9 90.4 97.5 93.6 88.4 86.8 81.4 103.7 94.6 110.6 112.5 175.7 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total 42.8 51.3 60.8 44.5 68.2 27.0 47.6 44.3 55.1 72.0 69.2 76.6 80.6 93.3 2 3 Deposits 23.7 51.5 48.5 4.7 61.1 8.2 -7.9 5.9 13.9 54.1 97.1 79.2 128.2 90.2 3 4 Demand dep. and currency.. 4.0 12.4 14.8 7.1 6.1 6.6 7.6 8.2 2.0 7.0 7.3 8.3 16.5 21.5 4 5 Time and svgs. accounts.... 19.7 39.1 33.7 -2.4 54.9 1.6 -15.5 -2.3 11.9 47.1 89.9 70.8 111.7 68.7 5 6 At commercial banks... 12.5 22.5 20.8 -10.5 38.4 -7.4 -21.3 -6.4 7.4 31.9 68.2 46.3 61.2 26.9 6 7 At savings instit 7.2 16.6 12.9 8.1 16.5 9.0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 41.8 7 8 Credit mkt. instr., net 19.1 -.2 12.3 39.8 7.1 18.9 55.5 38.4 41.2 17.9 -27.9 -2.5 -47.7 3.1 8 9 U.S. Govt, securities 8.5 -1.7 7.7 15.0 -6.9 .9 23.2 14.1 6.5 -8.0 -6.8 -19.2 -50.1 1.8 9 10 Pvt. credit market instr 11.4 7.8 13.4 27.0 15.2 23.6 29.6 27.5 37.6 23.9 -22.1 21.5 14.7 9.4 10 11 Corporate equities -1.0 -4.1 -7.4 -3.8 -2.6 -5.9 -.6 -3.7 -6.7 -.1 .7 -4.3 -12.8 -3.1 11 12 Less security debt -.2 2.2 1.4 -1.6 -1.4 -.2 -3.2 -.4 -3.8 -2.1 -.2 .6 -.5 5.0 12 Other sources: 13 Foreign funds .7 4.6 4.3 9.6 2.4 14.8 10.4 -.6 10.8 2.7 -4.5 .7 9.7 27.6 13 14 At banks 2.5 1.7 1.8 8.3 -8.4 13.8 5.3 .5 1.3 -6.8 -9.4 -18.9 -17.5 -3.0 14 15 Direct -1.8 2.8 2.5 1.3 10.9 1.0 5.1 -1.1 9.4 9,5 4.9 19.6 27.3 30.5 15 16 Chg. in U.S. Govt, cash bal -.4 1.2 -1.1 .4 2.6 1.7 1.6 3.9 1.0 2.1 1.4 6.1 -18.7 17.0 16 17 U.S. Government loans 4.9 4.6 4.9 2.5 3.2 1.7 3.7 2.3 3.9 3.6 3.5 1.8 4.3 4.4 17 18 Pvt. insur. and pension res 16.7 17.5 18.5 18.7 21.0 22.4 18.7 18.9 18.7 22.7 19.8 22.8 25.3 24.3 18 19 Sources n.e.c 3.8 4.3 9.5 14.7 .1 26.0 6.4 18.1 -8.1 .7 5.3 2.5 11.2 9.1 19 Digitized for FRNAOSTEE.—RF or notes see p. A-73.3. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 73.2 FLOW OF FUNDS • OCTOBER 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 II III IV I II III IV I II Demand deposits and currency 1 Net incr. in banking system liability.. 2.6 14.8 14.8 8.5 10.1 10.3 11.0 13.2 5.1 9.8 8.9 16.9 -.9 38.0 1 7, U.S. Government deposits -.4 1.1 -1.2 .6 2.5 1.7 1.9 4.2 1.1 2.0 .7 6.0 -19.1 16.9 2 3 Money supply 3.0 13.7 16.0 7.9 7.7 8.6 9.1 9.0 4.0 7.8 8.2 10.8 18.2 21.1 3 4 Domestic sectors 3.9 13.4 15.7 7.6 7.4 8.0 8.5 9.0 2.6 8.2 8.6 10.3 18.4 21.2 4 S Households 3.1 9.4 11.1 5.9 4.7 10.2 9.5 5.1 5.4 7.4 5.0 1.0 10.8 15.6 5 6 Nonfinancial business .7 .8 1.8 -.8 -.9 -5.6 -4.3 3.0 -2.3 -2.7 .7 .9 .4 4.9 6 7 State and local governments. -.1 -1.0 .7 3.2 1.2 3.4 3.9 2.9 -.3 1.0 1.1 3.1 -.3 -2.3 7 8 Financial sectors -.1 1.0 .9 .5 1.3 1.4 .9 .8 .5 1.2 1.4 2.0 1.9 -.3 8 9 Mail float .3 3.2 1.2 -1.2 1.1 -1.3 -1.5 -2.8 -.7 1.3 .5 3.3 5.6 3.3 9 10 Rest of the world -1.0 .3 .3 .3 .3 .6 .6 * 1.4 -.4 -.5 .5 -.2 10 Time and savings accounts 1 Net increase—Total 20.2 40.8 33.3 -1.6 53.9 -.2 -15.4 3.4 16.8 44.3 87.5 67.1 112.9 73.3 1 2 At commercial banks—Total 13.3 23.8 20.6 -9.7 36.7 -9.0 -21.2 -1.1 11.6 28.5 65.6 41.3 60.6 30.0 2 3 Corporate business -.7 2.9 1.9 -9.8 12.8 -9.5 -11.0 -4.2 .5 6.1 32.3 12.2 3.0 -1.5 3 4 State and local governments... 1.3 2.4 3.2 -5.9 9.9 -5.0 -10.3 -4.6 6.4 10.3 13.4 9.6 10.8 2.4 4 5 Foreign .8 1.2 -.3 1.0 -1.9 -1.4 .4 5.7 4.3 -3.5 -3.2 -5.1 -1.2 2.6 5 6 Households 11.9 17.1 15.7 5.2 15.8 7.1 « 2.4 .5 15.5 22.5 24.5 47.4 26.0 6 7 At savings institutions 7.0 17.0 12.8 8.1 17.2 8.8 5.7 4.5 5.2 15.8 21.9 25.8 52.3 43.3 7 Liabilities— 8 Savings and loan assns 3.6 10.6 7.5 4.1 11.1 4.8 2.9 .7 2.0 9.8 15.6 16.9 36.8 28.6 8 9 Mutual savings banks 2.6 5.1 4.2 2.6 4.4 2.7 1.5 2.2 1.6 4.4 4.7 7.0 12.4 11.6 9 10 Credit unions .8 1.2 1.1 1.4 1.7 1.2 1.3 1.5 1.6 1.7 1.5 1.9 3.1 3.1 10 Assets— 11 Households 7.2 16.6 12.9 8.1 16.5 9.0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 41.8 11 12 Cr. union deps. at S & L's... -.2 .3 -.1 « .7 -.2 -.1 .3 .8 .6 .2 1.3 1.8 1.5 12 U.S. Government securities 1 Total net issues 8.7 12.5 16.7 5.5 21.6 -1.0 10.0 13.8 17.5 21.6 20.1 27.0 -3.3 48.5 1 2 Household savings bonds .6 1.0 .4 -.4 .3 -.4 -.8 .1 -.9 -.2 .5 1.7 1.9 2.7 2 3 Direct excluding savings bonds... 1.8 7.9 9.9 -.9 12.6 -8.4 5.6 4.8 4.4 18.3 10.9 16.8 -.6 45.2 3 4 Budget agency issues * .1 1.5 -.4 1.3 -1.3 -.8 -.2 2.1 .2 1.0 1.7 .8 .4 4 5 5.1 -.6 3.2 9.1 8.7 8.4 10.6 12.5 14.4 5.5 7.8 7.0 -1.8 .7 5 6 Loan participations 1.3 4.0 1.7 -1.9 -1.3 .7 -4.8 -3.3 -2.6 -2.2 -.1 -.2 -3.6 -.5 6 7 Net acquisitions, by sector 8.7 12.5 16.7 5.5 21.6 -1.0 10.0 13.8 17.5 21.6 20.1 27.0 -3.3 48.5 7 8 U.S. Government (agency sec.)... 1.3 -.1 .1 -1.3 -.1 -2.2 -.8 -1.0 .1 * .1 -.6 * 8 9 Sponsored credit agencies 1.0 « -.1 -.2 1.7 .3 -.5 1.2 2.0 -.5 1.0 4.4 --11..99 -2.7 9 10 Direct marketable .3 .9 -.1 -.5 1.9 .3 -.8 .4 2.8 -.8 1.2 4.3 -3.9 -.2 10 11 FHLB snecial issue .6 — .9 .3 — .2 * .3 .8 — .8 .2 — .2 . 1 2.0 -2.6 11 12 Federal Reserve System 3.5 4.8 3.8 4.2 5.0 4.2 -.4 9.2 1.1 5.4 7.9 5.6 15.7 2.2 12 13 Foreign. -2.4 2.1 -.5 -1.8 9.1 -1.8 2.7 -3.7 8.0 8.2 4.7 15.5 26.1 28.8 13 14 -3.6 9.3 3.4 -9.5 9.0 -7.2 -9.5 -5.2 .5 6.8 11.0 17.6 2.8 15.6 14 15 Direct -3.4 6.3 2.2 -9.3 5.8 -8.8 -7.6 -6.2 -.7 6.8 8.9 8.0 -.6 12.2 15 16 Agency issues -.2 3.0 1.3 -.3 3.2 1.6 -1.9 1.0 1.3 * 2.1 9.6 3.4 3.4 16 17 Nonbank finance .4 -1.9 2.2 -.8 3.7 4.8 -4.7 -.8 -.7 9.8 2.2 3.7 4.0 2.8 17 18 Direct -.2 -2.2 .4 -2.4 1.5 2.7 -7.3 -.6 -3.2 7.6 -.7 2.5 -7.4 2.5 18 19 Agency issues .5 .3 1.8 1.6 2.2 2.0 2.6 -.2 2.6 2.2 2.9 1.2 11.4 .2 19 20 Pvt. domestic nonfin 8.5 -1.7 7.7 15.0 -6.9 .9 23.2 14.1 6.5 -8.0 -6.8 -19.2 -50.1 1.8 20 21 Savings bonds—^Households... .6 1.0 .4 -.4 .3 -.4 -.8 1 -.9 -.2 .5 1.7 1.9 2.7 21 22 Direct excl. savings bonds 3.3 -3.0 4.1 8.7 -10.5 -5.1 18.8 5!O -2.7 -9.2 -10.8 -19.2 -32.5 2.2 22 23 Agency issues 4.7 .4 3.2 6.7 3.4 6.4 5.2 9.1 10.1 1.4 3.5 -1.7 -19.5 -3.1 23 Private securities 1 18.5 28.2 23.9 27.7 42.3 28.8 25.1 26.3 31.3 41.0 39.3 57.7 65.3 58.9 1 2 State and local governments 5.7 8.7 9.6 8.1 11.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 16.3 2 3 Nonfinancial corporations 11.4 17.0 12.1 16.4 27.0 14.9 16.1 19.8 20.2 28.9 25.7 33.4 32.8 38.5 3 4 Finance companies .8 1.0 .8 1.6 2.5 2.2 1.4 1.3 1.3 2.3 2.8 3.8 5.5 2.5 4 5 Commercial banks .1 .2 .2 .1 .1 .3 * -.1 .2 « * « * * 5 6 Rest of the world .5 1.3 1.3 1.5 .9 2.0 2.0 .5 .7 -.4 2.0 1.3 1.4 1.6 6 7 Net purchases 18.5 28.2 23.9 27.7 42.3 28.8 25.1 26.3 31.3 41.0 39.3 57.7 65.3 58.9 7 8 3.2 -1.8 -1.2 3.0 8.1 -1.8 5.2 5.3 6.9 9.8 2.5 13.3 -3.3 3.3 8 9 Nonfinancial corporations 1.0 -.2 -1.1 5.1 1.4 3.1 5.5 5.0 .6 2.0 1.6 1.2 6.1 3.4 9 10 State and local governments 1.1 1.9 -.4 2.6 .2 3.0 .9 1.4 .4 .7 -.8 .6 2.8 2.7 10 11 Commercial banks 1.9 9.8 8.9 .3 10.8 2.4 -1.1 -1.7 5.0 8.9 14.5 14.7 19.4 14.9 11 12 Mutual savings banks .3 2.3 1.6 .6 1.7 1.0 « .2 1.2 2.0 1.2 2.5 8.3 6.7 12 13 Insurance and pension funds 12.9 16.6 17.6 16.8 18.7 20.5 15.0 15.4 17.0 20.6 13.9 23.2 26.7 34.0 13 14 Finance n.e.c -2.2 -.9 -3.6 -2.8 .1 -.2 -1.1 -2.2 -.3 -3.5 4.3 -.1 4.3 -5.9 14 15 Security brokers and dealers... .1 .2 -.9 .2 .7 .9 2.3 -2.6 • .2 5.2 -2.7 2.4 -6.6 15 16 Investment companies, net -2.4 -1.1 -2.8 -3.0 -.6 -1.2 -3.4 .3 -.3 -3.7 -1.0 2.5 1.9 .6 16 17 Portfolio purchases 1.4 1.5 1.9 2.7 1.8 3.6 2.7 4.6 1.3 -1.0 2.4 4.5 2.1 .4 17 18 Net issues of own shares.... 3.7 2.6 4.7 5.7 2.4 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 18 19 Rest of the world .3 .6 2.3 2.1 1.4 .9 .7 2.9 .6 .5 2.1 2.3 .9 -.2 19 Bank loans n.e.c. 1 Total net borrowing 9.C I 7.£; is.i ' 17.81 2.1 24. C1 11.1 17.(i 1 5.2 1 10.3 5.0 -11.8 10.2 15.1 1 2 .A^ 2.1 3.1 2.4 ^ .8 ! 4.2i .9• 1.5; 2.31 -1.1 1.2 1.0 3.4 4.7 2 3 Nonfinancial business 10.1 7,1 ^ 10.6; 13.5; 2.31 14.4^ 12.31 12.8 4.6 ; 10.4 .9 -6.7 .6 ; 5.9 3 4 Rest of the world -.2 i -.2: -.3 1 -.2 ^ .6; -1.5 ! -.1 .6 i -.3 -.2 -1.9 .5 ; 2.3 4 5 Financial sectors -1.3 t -2.1 2.3 1 2.1 -.3 i 4.9 ' -.6 ; 3.4• -2.3 1 1.2 3.0 -4.1 5.7 2.2 5 Digitized for FRASER NOTE.—For notes see p. A-73.3. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • FLOW OF FUNDS A 73.3 Notes to Table 2 consists of life companies, fire and casualty companies, pri^ ate 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 sectioi lending by sued by CCC, Export-Import Bank, FNMA, and GNMA, together with financial sectors is replaced by sources of funds to finan • 1 secto security issues by FHA, Export-Import Bank, and TVA. 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 mistions. 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 participain 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 II III IV I II III IV I II Households, perso:n al trusts, and i nonprofit orgar lizations 1 Personal income 587. .2 629.3 688.9 750.3 803.6 743 1 759.3 772.2 784.3 803.8 809.8 816.7 834.3 854.8 1 2 Less: Personal taxes & nontaxes... 75, .4 83.0 97.9 116.2 115.9 117 '.2 116.1 117.7 116.7 118.0 113.5 115.2 112.7 114.0 2 3 Personal outlays 479 .3 506.0 551 .2 596 .3 633.7 592 .4 600.9 611.4 621.4 631.5 638.9 643.0 663.2 679.9 3 4 Equ als: Personal saving, NIA basis. 32 .5 40.4 39 .8 37.9 54.1 33 .4 42.3 43.1 46.2 54.2 57.4 58.5 58.4 60.9 4 5 Plus; : Credits from Govt, insur. i. 5,. 3 5.3 5 .9 6.2 9.0 8 .4 7.2 3.7 6.6 13.1 7.5 8.9 9.0 13.0 5 6 Capital gains dividends2 . . 1,. 3 1.7 2 .5 2.5 .9 1 .9 2.2 1 1 1.4 1.2 .8 .4 1.3 6 7 Net durables in consumpt.. 15 .2 12.4 16 .7 15 .5 8.4 16 .8 14.1 13.6 10.4 10.7 9.2 3!I 15.1 17.5 7 8 Equ als: Net saving 54,. 3 59.8 64 .8 62.2 72.4 60 .5 65.8 61.5 64.6 79.2 74.9 70.7 82.9 92.7 8 9 Plus : Capital consumption 64 .3 69.9 77 .2 84 .8 91.2 84 .1 85.8 87.3 89.0 90.8 92.1 92.8 93.8 94.7 9 10 On owner-occ. homes 7,. 4 7.8 8 .3 8.8 9.2 8 .7 8.9 9.0 9.1 9.2 9.3 9.4 9.6 9.7 10 11 On nonprofit pi. and eq.. . .3 1.4 1 .5 1 .6 1.7 1 .6 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.7 11 12 On consumer durables 55!. 6 60.7 67 .4 74 .4 80.3 73 .7 75.3 76.7 78.2 80.0 81.1 81.7 82.4 83.3 12 13 Equ als: Gross savings 118 .6 129.7 142 .0 147 .0 163.5 144 .6 151.6 148.8 153.6 170.0 167.0 163.5 176.7 187.3 13 14 Gross investment 119 .8 132.0 140 .5 141 .2 162.9 133 .6 145.7 143.0 148.9 168.7 166.2 167.3 181.5 194.2 14 15 C apital expend, (net of sales) 94 .2 94.6 109 .7 116 .7 112.9 119 .3 116.5 114.9 113.8 115.5 112.8 109.2 124.5 131.4 15 16 Residential construction 18 .9 17.0 21 .1 21 .6 18.9 23 .8 21.7 19.3 19.7 19.4 17.3 19.2 21.6 24.9 16 17 Consumer durable goods 70, .8 73.1 84 .0 89 .9 88.6 90 .6 89.4 90.3 88.6 90.7 90.4 84.9 97.6 100.8 17 18 Plant and equip, (nonprofit). .. 4 .5 4.5 4 .5 5 .1 5.3 5 .0 5.3 5.4 5.5 5.4 5.2 5.1 5.3 5.8 18 19 Net finan. investment 25,. 6 37.3 30 .8 24 .5 50.0 14.3 29.2 28.1 35.2 53.2 53.4 58.1 57.0 62.8 19 20 Net acquis, of financial assets. . 49 .3 61.1 65 .6 55 .2 70.6 SO. 1 56.6 58.0 53.8 71.7 80.0 76.8 82.8 106.6 20 21 Demand dep. and curr 3,. 1 9.4 11 .1 5 .9 4.7 10 .2 9.5 5.1 5.4 7.4 5.0 1.0 10.8 15.6 21 22 Savings accounts 19,. 1 33.7 28 .6 13 .3 32.2 16 .1 5.8 6.6 5.0 30.7 44.2 49.1 97.9 67.8 22 23 At commercial banks 11,. 9 17.1 15 .7 5,. 2 15.8 7 , 1 2.4 .5 15.5 22.5 24.5 47.4 26.0 23 24 At savings institutions 7. .2 16.6 12,. 9 8 .1 16.5 9 .0 5.8 4.2 4.4 15.2 21.7 24.5 50.5 41.8 24 25 Credit market instruments... 12,. 9 4.2 13 .2 22, .2 13.1 7,. 7 27.0 29.0 31.5 8.9 7.4 4.8 -38.3 1.8 25 26 U.S. Govt, securities 7, .3 .9 5,. 2 13 .2 .3 2,. 2 18.6 17.9 14.8 -3.3 4.1 -14.5 -49.8 -4.5 26 27 State and local oblig 2, ,1 -1.3 .9 I, ,5 -1.5 2, .7 -.8 -.2 1.2 -.4 -9.5 2.7 -1.4 27 28 Corporate and fgn. bonds. 2, ,0 3.6 5!. 4 5,. 4 12.2 1,. 4 6.5 9.2 12.3 10.2 11.3 14.9 9.5 7.8 28 29 Mortgages 1.. 4 1.0 1,. 8 2,• 1 2.2 1,, 4 2.7 2.2 3.1 2.3 1.5 1.7 2.0 -.1 29 30 Investment co. shares 3,. 7 2.6 4,. 7 5,. 7 2.4 4, .8 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 30 31 Other corp. shares -4, .7 -6.7 -12, .2 -9, .5 -5.0 -10, .7 -6.7 -7.9 -8.3 -2.8 -2.7 -6.4 -13.0 -3.0 31 32 Life insurance reserves 4, .6 4.8 4,. 5 4,. 9 4.9 4, .9 5.0 4.9 4.9 4.9 4.9 4.8 4.9 4.9 32 33 Pension fund reserves 13,. 4 14.1 15 .3 15,. 4 18.6 18,. 7 16.1 15.0 15.3 21.4 16.7 20.9 22.6 23.5 33 34 Net invest, in noncorp. bus... -4, .1 -3.6 -2, .2 -3 .9 -2.3 -4, .2 -4.3 -2.7 -2.6 -2.1 -2.5 -2.0 -6.5 -5.8 34 35 Security credit 1.1 .7 —, .8 -.5 -1, ,0 -1.8 1.1 -1.3 -1.8 1.2 1.6 -1.2 35 36 Miscellaneous 1 .2 1.5 1 .8 2,. 1 2.5 3,, 6 -.1 2.6 2.3 2.5 2.5 2.5 2.6 3.2 36 37 Net increase in liabilities 23. .6 23.7 34.S 30. .7 20.6 35.8 27.3 29.9 18.6 18.5 26.7 18.7 25.7 43.8 37 38 Credit mkt. instruments 23, .2 19.7 31,. 8 32,. 2 21.6 36.0 31.5 28.2 22.8 21.5 24.8 17.2 23.7 39.0 38 39 Home mortgages 12,. 3 10.5 14.9 16,. 2 12.5 17., 1 16.3 14.9 11.0 12.2 13.7 13.0 13.1 22.7 39 40 Other mortgages 1,. 3 1.2 1,. 1 1,. 3 1.4 1., 3 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.4 40 41 Instalment cons, credit 6,. 2 3.4 9.0 8,. 3 3.0 9.9 8.0 7.1 4.1 4.8 4.4 -1.3 2.7 6.7 41 42 Other consumer credit 1 .0 1.2 2,, 1 1,. 0 1.3 9 1.0 .4 .6 1.3 1.9 1.6 1.3 2.3 42 43 Bank loans n.e.c .4 2.1 3,. 1 2,. 4 .8 4! ,2 .9 1.5 2.3 -1.1 1.2 1.0 3.4 4.7 43 44 Other loans 3 2 .0 1.3 1 .7 3,. 0 2.6 2. ,7 4.1 3.0 3.4 3.0 2.3 1.6 1.7 1.2 44 45 Security credit _ . ^ 2 3.3 2,. 1 -2.5 -1.9 -1. ,2 -5.1 .7 -5.2 -3.9 .9 .6 1.1 3.8 45 46 Trade debt .3 .4 .5 .5 .6 ,5 .5 .5 .5 .5 .6 .6 .6 .6 46 47 Miscellaneous .4 .3 .4 .4 .4 .4 .4 .5 .4 .4 .4 .4 .3 .3 47 48 Dis( :repancy (13-14) -1, .2 -2.2 1,. 5 5.8 .6 11. 0 5.9 5.8 4.6 1.4 .8 -3.8 -4.8 -6.9 48 NOTE.—For 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 • OCTOBER 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 CCaatteeggoorryy 1966 1967 1968 1969 1970 II III IV I 11 III IV I II Nonfinancial business—Total 1 Income before taxes i 139.1 136.2 142.4 138.4 129.7 140.5 137.5 133.3 130.9 132.1 130.1 125.5 132.0 134.8 1 2 Gross saving 77.7 78.4 80.0 78.9 82.0 79.3 80.4 77.5 81.6 82.1 82.3 82.6 90.1 94.0 2 3 Gross investment 69.6 68.3 73.7 73.6 80.2 73.2 75.5 73.9 80.2 82.8 79.7 78.7 81.8 82.0 3 4 Capital expenditures 97.0 94.0 99.0 109.2 109.1 106.5 112.9 111.5 104.1 107.4 114.2 110.8 114.7 120.0 4 5 Fixed investment 82.2 85.8 91.9 101.8 106.3 99.7 102.5 105.8 103.7 105.3 109.1 107.1 111.6 114.3 5 6 Business plant & equipment.. . 76.1 77.8 82.9 91.6 94.8 89.8 93.5 95.0 93.4 94.8 97.6 93.6 96.8 99.5 6 7 1-4 family resident, const. 2.... -.7 2.0 .9 -.1 1.0 -.4 -1.4 .2 -.1 -.6 1.8 3.0 3.8 2.1 7 8 Other residential 6.8 6.1 8.1 10.3 10.4 10.3 10.5 10.7 10.4 11.2 9.7 10.5 11.0 12.8 8 9 Change in inventories 3 14.8 8.2 7.1 7.4 2.8 6.8 10.4 5.7 .4 2.1 5.1 3.7 3.2 5.7 9 10 Net financial investment -27.4 -25.7 -25.3 -35.6 -28.9 -33.3 -37.4 -37.7 -23.9 -24.6 -34.5 -32.2 -32.9 -38.1 10 11 Financial uses of funds ^ net 16.5 15.8 27.4 29.6 21.2 26.6 28.6 22.6 37.0 25.1 8.3 14.9 26.9 21.9 11 12 Financial sources of funds, net 43.9 41.5 52.6 65.2 50.1 59.9 66.0 60.3 60.9 49.7 42.8 47.1 59.9 59.9 12 13 Corporate share issues 1.2 2.3 -.8 4.3 6.8 2.4 5.6 9.1 6.3 6.2 5.0 9.6 9.0 16.4 13 14 Credit market instruments 32.7 35.6 39.6 45.4 41.5 48.9 43.8 40.8 37.1 48.0 40.7 40.4 50.4 49.7 14 15 Corporate bonds 10.2 14.7 12.9 12.1 20.3 12.5 10.5 10.7 13.9 22.7 20.7 23.8 23.8 22.1 15 16 Home mortgages -1.0 1.1 .3 -.6 .3 -.5 -.7 -1.0 -.3 -1.1 1.4 1.2 1.9 2.0 16 17 Other mortgages 9.7 9.2 11.0 11.0 11.7 10.9 10.5 11.6 9.7 9.6 12.3 15.1 15.4 18.9 17 18 Bank loans n.e.c 10.1 7.7 10.6 13.5 2.3 14.4 12.3 12.8 4.6 10.4 .9 -6.7 .6 5.9 18 19 Other loans 4 3.6 2.8 4.8 9.3 7.0 11.6 11.2 6.7 9.2 6.4 5.3 7.0 8.7 .9 19 20 Trade debt 7.4 6.4 10.2 19.7 4.3 20.7 23.5 12.8 14.5 * 2.0 .7 4.3 -6.5 20 21 Other liabilities 2.7 -2.7 3.7 -4.1 -2.5 -12.1 -7.0 -2.3 2.9 -4.5 -4.9 -3.6 -3.8 .3 21 22 Discrepancy (2-3) 8.0 10.1 6.3 5.4 -1.8 6.1 , 4.8 3.6 1.4 -.7 2.6 3.9 8.3 12.1 22 Farm and nonfarm noncorporate business 5 1 Net income i 69.8 71.2 73.5 76.4 76.5 76.5 76.5 76.7 77.5 77.2 75.6 75.7 75.8 76.7 1 2 Gross saving <> 16.5 16.9 18.3 19.5 20.5 19.8 19.7 19.6 22.0 20.2 20.2 20.2 21.9 22.3 2 3 Gross investment 16.5 16.9 18.3 19.5 20.5 19.8 19.7 19.6 22.0 20.2 20.2 20.2 21.9 22.3 3 4 Capital expenditures 19.9 22.1 22.8 24.3 24.9 23.6 24.6 24.2 24.0 24.9 25.8 24.8 31.0 28.3 4 5 Fixed investment 19.5 21.1 22.2 23.4 24.7 23.0 22.5 24.5 23.9 24.0 24.9 25.9 28.1 28.9 5 6 Change in inventories 3 .4 .9 .6 .9 .2 .6 2.1 -.2 .1 .9 .9 -1.1 2.9 -.6 6 7 Net financial investment -3.4 -5.1 -4.5 -4.8 -4.3 -3.8 -5.0 -4.6 -2.0 -4.7 -5.6 -4.7 -9.1 -6.0 7 8 Financial uses of funds y net 1.1 1.2 1.8 1.8 1.7 1.9 2.3 1.5 1.1 1.5 2.4 1.9 1.1 2.0 8 9 Financial sources of funds, net.... 4.5 6.3 6.3 6.5 6.1 5.7 7.3 6.1 3.1 6.2 8.1 6,5 10.2 8.0 9 10 Credit market instruments 9.0 8.5 8.5 10.5 9.5 10.2 12.0 8.9 6.5 8.9 12.1 10.8 12.8 14.0 10 11 Mortgages 4.5 5.8 5.5 5.7 6.7 6.3 5.6 4.8 5.1 5.1 8.0 8.4 8.5 8.6 11 12 Bank loans n.e.c 2.2 1.3 1.8 2.5 1.1 2.1 3.5 2.2 -1.0 2.1 2.4 .9 .6 3.4 12 13 Other loans 4.7 2.2 1.4 1.3 2.4 1.8 1.9 2.8 1.9 2.4 1.7 1.7 1.4 3.6 2.0 13 14 Trade debt, net -.4 1.4 * -.1 -1.2 -.4 -.4 -.2 -.8 -.7 -1.5 -2.3 4.0 -.2 14 15 Proprietors' net investment 8... -4.1 -3.6 -2.2 -3.9 -2.3 -4.2 -4.3 -2.7 -2.6 -2.1 -2.5 -2.0 -6.5 -5.8 15 Nonfinancial corporate business 1 Profits before tax 71.1 66.1 72.2 67.5 57.7 70.2 64.2 63.2 59.2 59.2 60.0 52.4 59.7 63.1 1 2 Less: Profits tax accruals 30.0 28.3 34.0 33.3 27.0 34.6 31.7 31.2 27.6 27.7 28.1 24.7 28.8 30.3 2 3 Net dividends paid 18.1 18.8 20.8 20.9 21.0 20.8 20.9 21.0 21.0 21.2 21.2 20.8 21.3 20.4 3 4 Equals: Undistributed profits 22.9 19.0 17.5 13.3 9.6 14.8 11.6 11.1 10.6 10.3 10.7 6.9 9.6 12.3 4 5 Plus: Foreign branch profits, net 1.8 2.1 2.5 2.5 2.6 2.4 2.5 2.5 2.8 2.5 2.7 2.7 2.7 3.3 5 6 Inv. valuation adj -1.8 -1.1 -3.3 -5.5 -4.5 -6.3 -3.2 -6.7 -5.8 -4.2 -5.5 -2.6 -3.5 -5.1 6 7 Capital consumption 38.2 41.5 45.1 49.2 53.8 48.6 49.8 51.0 52.1 53.3 54.2 55.4 59.5 61.2 7 8 Equals: Gross internal funds 61.2 61.5 61.7 59.5 61.5 59.5 60.7 57.9 59.7 61.8 62.1 62.4 68.3 71.8 8 9 Gross investment (10+15) 53.1 51.3 55.4 54.1 59.7 53.4 55.9 54.2 58.2 62.6 59.5 58.5 59.9 59.7 9 10 Capital expenditures 77.1 72.0 76.1 84.9 84.2 82.9 88.3 87.3 80.1 82.5 88.3 86.0 83.8 91.7 10 11 Fixed investment 62.7 64.7 69.7 78.4 81.6 76.6 80.0 81.4 79.8 81.3 84.1 81.2 83.5 85.5 11 12 Plant and equipment 61.6 62.5 67.4 75.6 78.3 74.0 77.8 78.1 77.0 78.5 80.6 76.9 78.7 81.0 12 13 Residential construction 1.1 2.3 2.3 2.8 3.3 2.6 2.2 3.3 2.8 2.8 3.5 4.3 4.8 4.5 13 14 Change in inventories 3 14.4 7.3 6.4 6.5 2.6 6.2 8.3 5.9 .3 1.2 4.2 4.8 .3 6.3 14 15 Net financial investment -24.0 -20.6 -20.7 -30.8 24.5 -29.4 -32.4 -33.1 -21.9 -19.9 -28.8 -27.5 -23.9 -32.0 15 16 Financial uses of funds, net 15.5 14.6 25.6 27.8 19.5 24.7 26.2 21.2 35.9 23.6 5.9 13.1 25.8 19.8 16 17 Liquid assets 1.9 2.1 8.6 1.3 8.9 -2.7 .1 4.6 11.8 14.0 1.4 8.5 3.0 7.2 17 18 Demand dep. and curr .7 .7 1.6 -.9 -1.0 -5.7 -4.4 2.9 -2.4 -2.9 .6 .8 .3 4.7 18 19 Time deposits -.7 2.9 1.9 -9.8 12.8 -9.5 -11.0 -4.2 .5 6.1 32.3 12.2 3.0 -1.5 19 20 U.S. Govt, securities -1.2 -2.8 1.7 -1.7 -3.2 -1.0 -2.2 -8.0 -5.4 1.3 -3.9 -4.5 .8 6.0 20 21 Open market paper 2.0 1.5 4.4 8.6 -1.1 10.5 12.2 8.9 18.6 7.4 -29.1 -1.2 -7.3 -5.5 21 22 State and local oblig 1.0 -.2 -1.1 5.1 1.4 3.1 5.5 5.0 .6 2.0 1.6 1.2 6.1 3.4 22 23 Consumer credit 1.2 .9 1.7 1.3 1.4 1.0 1.5 .8 1.5 1.4 1.7 1.1 1.7 1.8 23 24 Trade credit 11.3 7.7 13.9 17.3 6.2 16.9 18.7 14.6 18.6 4.8 2.0 -.7 11.6 4> 24 25 Other financial assets » 1.0 3.8 1.4 8.0 3.0 9.6 5.9 1.2 3.9 3.4 .7 4.2 9.6 10.8 25 26 Financial sources of funds, net.... 39.4 35.2 46.3 58.6 44.0 54.2 58.7 54.2 57.8 43.5 34.7 40.5 49.7 51.9 26 27 Net new share issues 1.2 2.3 -.8 4.3 6.8 2.4 5.6 9.1 6.3 6.2 5.0 9.6 9.0 16.4 27 28 Credit market instruments 23.7 27.0 31.1 34.8 32.0 38.7 31.8 31.9 30.6 39.1 28.6 29.6 37.7 35.7 28 29 Corporate bonds 10.2 14.7 12.9 12.1 20.3 12.5 10.5 10.7 13.9 22.7 20.7 23.8 23.8 22.1 29 30 Mortgages 4.2 4.5 5.8 4.8 5.3 4.2 4.2 5.7 4.3 3.4 5.8 7.8 8.8 12.3 30 31 Bank loans n.e.c 7.9 6.4 8.8 11.0 1.2 12.3 8.8 10.6 5.6 8.3 -1.5 -7.7 -.1 2.5 31 32 Other loans lo 1.4 1.4 3.6 7.0 5.2 9.7 8.4 4.8 6.8 4.7 3.6 5.6 5.1 -1.1 32 33 Profit tax liability .2 -4.7 2.1 -1.9 -3.3 -6.3 -4.7 -2.6 -2.5 -4.6 -3.0 -3.3 .4 5.8 33 34 Trade debt 7.8 4.9 10.1 19.7 5.5 21.0 23.9 13.0 15.3 .7 3.5 3.0 .3 -6.3 34 35 Other liabilities 6.5 5.6 3.8 1.7 3.1 -1.6 2.0 2.9 8.0 2.2 .6 1.7 2.4 .3 35 36 Discrepancy (8-9) 8.0 10.1 6.3 5.4 1.8 6.1 4.8 3.6 1.4 -.7 2.6 3.9 8.3 12.1 36 NOTE.—For notes see p. A-73.3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • FLOW OF FUNDS A 5.1 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 II III IV I II III IV I 11 State and local governments—General funds i 1 Net surplus, NIA basis 1.3 -1.6 -.3 .5 -1.0 .5 1.8 1.1 1.9 .2 -1.3 -.4 1.6 1 2 Less: Retirement cr. to households . 4.0 3.9 4.6 4*. 6 6.6 7.1 4.8 2.8 5.2 9.5 5.7 5.9 6.8 8.9 2 3 Equals: Gross saving . -2.7 -5.5 -5.0 1 -4.5 -6.0 -8.1 -4.2 -1.0 ' -4.0 1 -7.6 -5.5 -7.1 -7.3 -7.3 3 4 Net financial investment . -2.1 -5.6 -5.5 -6.3 -6.3 -10.1 -5.6 -2.4 -7.2 -5.7 -4.4 -7.8 -13.9 -13.6 4 5 Net acq. of financial assets 4.8 3.8 5.0 ' 2.7' 6.5 .1 .7 3.2 2.7 5.1 5.8 12.2 12.5 3.3 5 6 Currency and demand deposits, -.1 -1.0 .7 3.2 1.2 3.4 3.9 2.9 -.3 1.0 1.1 3.1 -.3 -2.3 6 7 Time deposits 1.3 2.4 3.2 -5.9 9.9 -5.0 -10.3 -4.6 6.4 10.3 13.4 9.6 10.8 2.4 7 8 Credit market instruments. 3.4 2.1 .4 6.1 -3.8 2.9 7.7 5.6 -2.5 -5.3 -7.8 .4 1.8 3.0 8 9 U.S. Government securities. 2.4 .2 .8 3.5 -4.0 -.2 6.8 4.2 -2.9 -6.0 -7.0 -.2 -1.0 .3 9 10 Direct 2.2 -.4 -.3 1.8 -3.1 -1.0 3.4 2.8 -3.2 -3.5 -5.4 -.2 .9 .5 10 11 U.S. Govt, agency sec .1 .6 1.0 1.7 -.9 .9 3.4 1.4 .3 -2.5 -1.5 * -1.9 -.2 11 12 State and local securities * * .3 .4 .2 .2 .6 .2 .7 .3 .5 1 .2 12 13 Corporate bonds 1.1 -.4 2.3 -.2 2.8 .8 .8 .2 * -1.1 * 2.7 2.5 13 14 Home mortgages » • .1 * * * * * * * * * * 14 15 Tax receivables .2 .3 .7 -.6 -.9 -1.1 -.7 -.7 -.9 -.9 -.9 .2 .2 15 16 Net increase in liabilities 6.9 9.5 10.5 9.0 12.8 10.2 6.3 5.6 9.9 10.9 10.2 20.0 26.5 17.0 16 17 Credit mkt. borrowing 6.4 8.8 9.9 8.5 12.2 9.7 5.8 5.1 9.4 10.4 9.1 19.5 26.0 16.5 17 18 State and local obligations .., 5.7 8.7 9.6 8.1 11.8 9.4 5.6 4.7 8.9 10.2 8.9 19.3 25.6 16.3 18 19 Short-term .7 1.8 .1 3.1 3.8 2.5 2.9 2.7 3.0 3.2 1.9 7.2 7.4 3.5 19 20 Other 5.1 6.8 9.4 5.0 8.0 7.0 2.7 2.0 5.9 7.0 7.0 12.0 18.2 12.8 20 21 U.S. Govt, loans .6 .2 .3 .4 .4 .3 .3 .5 .5 .2 .8 .2 .4 .2 21 22 Trade debt .5 .6 .6 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 22 23 Discrepancy (7-8) -.7 .5 1.8 .2 2.0 1.4 1.5 3.2 -1.8 -1.1 .7 6.7 6.3 23 U.S. Government 2 1 Total receipts, NIA basis 142.5 151.2 175.0 196.9 191.5 199.3 195.8 196.8 191.6 193.8 191.3 189.3 195.6 198.3 1 2 Personal taxes 61.7 67.5 79.7 94.9 92.2 96.5 94.0 95.2 93.8 94.5 89.7 91.0 1 87.6 88.4 2 3 Corp. profits tax accruals. 32.1 30.7 36.7 36.3 30.6 37.5 34.9 34.5 30.6 30.9 31.9 29.0 1 32.4 33.4 3 4 Indirect taxes 15.7 16.3 18.0 19.0 19.3 19.0 19.4 19.1 19.0 1 19.1 19.7 19.4 20.6 20.6 4 5 Insurance receipts 33.0 36.7 40.7 46.8 49.3 46.3 47.4 48.0 48.2 49.2 50.0 49.8 55.0 55.9 5 6 Total expenditures, NIA basis 142.8 163.6 181.5 189.5 205.1 187.6 190.7 193.4 196.1 207.9 206.7 209.8 213.2 220.9 6 7 Goods and services 77.8 90.7 98.8 99.2 97.2 97.7 100.3 99.5 100.2 96.8 96.1 95.9 96.7 95.7 7 8 Grants and donations 29.0 30.7 34.1 37.2 45.2 36.9 36.9 39.5 39.7 46.4 46.8 48.1 47.5 49.7 8 9 Net interest 9.5 10.2 11.7 13.1 14.6 12.8 13.3 14.0 14.3 14.3 15.0 14.8 14.0 13.4 9 10 Insurance benefits 26.4 32.0 36.9 40.0 48.1 40.2 40.2 40.4 41.9 50.5 48.9 51.0 55.0 62.0 10 11 Net surplus, NIA basis -.2 -12.4 -6.5 7.3 -13.6 11.7 5.1 3.4 -4.5 -14.1 -15.5 -20.5 -17.5 -22.6 11 12 Less: Insur. credits to households3 1.4 1.4 1.3 1.6 2.5 1.2 2.4 .9 1.5 3.6 1.8 3.0 2.1 4.1 12 13 Equals: Gross saving -1.6 -13.8 -7.8 5.7 -16.1 10.4 2.7 2.5 -6.0 -17.7 -17.3 -23.4 -19.6 -26.7 13 14 Net financial investment -.1 -13.1 -8.4 5.4 -15.2 10.2 2.6 2.0 -4.8 -18.9 -14.0 -23.1 -19.8 -30.7 14 15 Net acquis, of finan. assets 5.4 2.9 7.4 3.0 .6 -.5 4.0 5.6 * -.6 .3 2.9 -18.3 20.8 15 16 Demand deposits & currency. 1.0 -1.7 1.1 2.5 .9 2.6 4.0 .6 2.5 .7 6.4 -19.1 15.9 16 17 Credit market instruments A.9 4.6 4.9 2.5 3.2 1.7 3.7 2.3 3.9 3.6 3.5 1.8 4.3 4.4 17 18 Agency securities 4 1.3 -.1 . 1 -1.3 —. 1 -2.2 -.8 -1.0 .1 * .1 -.6 * 18 19 Mortgages .8 .9 1.1 .7 .3 .8 .7 .8 .3 .5 .3 .3 .4 19 20 Other loans 2.8 3.8 3.7 3.1 3.0 3.2 3.8 2.4 3.5 3.1 3.1 2.1 4.5 4.0 20 Excess of tax accruals 21 over receipts -.7 -4.4 1.7 -2.9 -2.8 -7.3 -4.3 -2.3 -1.1 -4.2 -1.7 -4.1 .5 5.8 21 22 Other financial assets 5 1.3 1.8 2.5 2.2 -2.3 4.1 2.1 1.6 -3.3 -2.5 -2.1 -1.3 -4.0 -5.3 22 23 Net increase in liabilities 5.5 16.0 15.9 -2.5 15.9 -10.7 1.4 3.5 4.9 18.2 14.3 26.0 1.5 57.5 23 24 U.S. Government securities 3.5 13.0 13.4 -3.6 12.8 -9.5 -.7 1.2 3.0 16.0 12.2 20.0 -1.6 47.7 24 25 Savings bonds—households.. .6 1.0 .4 -.4 .3 -.4 -.8 .1 -.9 -.2 .5 1.7 1.9 2.7 25 26 Direct excl. savings bonds. .. 1.8 7.9 9.9 -.9 12.6 -8.4 5.6 4.8 4.4 18.3 10.9 16.8 -.6 45.2 26 27 Budget agency sec.<> 1.2 4.1 3.1 -2.4 —. I -.7 -5.6 -3.7 -.5 -2.0 .8 1.5 -2.9 -.2 27 28 Life & retirement reserves 1.4 1.4 1.3 1.6 2.5 1.2 2.4 .9 1.5 3.6 1.8 3.0 2.1 4.1 28 29 Other liabilities 7 .6 1.6 1.1 -.4 .6 -2.5 -.3 1.4 .4 -1.4 .3 3.1 .9 -.3 29 30 Discrepancy (13-14) -1.5 -.7 .6 .3 -.9 .2 * .5 -1.2 1.2 -3.3 -.3 .1 4.1 30 31 Memo: Corp. tax receipts, net 32.8 35.1 35.0 39.2 33.4 44.7 39.3 36.8 31.7 35.1 33.6 33.1 31.9 27.7 31 Federally sponsored credit agencies 8 1 Current surplus .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 .1 1 2 Net increase in assets 5.3 -.1 3.2 9.2 10.8 7.8 11.1 13.7 15.8 6.8 9.9 10.7 2.1 -5.6 2 3 Credit market instruments.... 5.1 -.1 3.2 9.0 9.9 7.6 10.5 14.1 13.7 7.1 8.7 10.1 .3 -5.7 3 4 U.S. Government securities. 1.0 • —. 1 -.2 1.7 .3 -.5 1.2 2.0 -.5 1.0 4.4 -1.9 -2.7 4 5 Residential mortgages 1.9 1.1 1.6 3.9 5.4 2.5 4.7 6.6 5.8 5.4 6.3 4.0 1.4 6.0 5 6 Farm mortgages .7 .7 .5 .6 .5 .8 .6 .3 .3 .5 .5 .5 .5 .8 6 7 Other loans 1.6 -1.8 1.2 4.8 2.3 4.0 5.7 5.9 5.6 1.7 .9 1.1 .2 -9.8 7 8 To coops (BC) .2 .2 .1 .2 .3 .2 -.1 .3 .3 .1 .4 .4 .3 1 8 9 To farmers (FICB) .4 .5 .2 .6 .7 .7 .4 .8 1.0 .7 .2 .9 1.1 i.'o 9 10 To S & L's (FHLB) .9 -2.5 .9 4.0 1.3 3.1 5.3 4.8 4.4 .8 .3 -.2 -1.2 -10.8 10 11 Net increase in liabilities 5.2 -.2 3.2 9.1 10.8 7.8 11.4 13.3 15.8 6.7 9.9 10.8 2.3 -5.7 11 12 Credit market instruments 4.8 -.6 3.5 8.8 8.7 8.4 10.6 12.5 14.4 5.5 7.8 7.0 -1.8 .7 12 1 1 4 3 A U g .S e . n c G y o v se e c rn u m rit e ie n s t loans - 5 .2 .1 - - . . 1 6 3 . . 2 2 - 9 .3 .1 8.7 8.4 10.6 12.5 14.4 ...5...5. . 7.8 7.0 -1.8 .7 1 1 4 3 15 Miscellaneous liabilities .4 .5 -.3 .4 "i.'i "".'8 "i'.3 "lA -a.V '"i'A ' -6.'4 15 NOTE.—For notes see p. A-5.3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 73.6 FLOW OF FUNDS • OCTOBER 1971 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 CCaatteeggoorryy 1966 1967 1968 1969 1970 11 III IV I II III IV I II Monetary authorities i 1 Current surplus * * 41 * * « * * * * * * * » 1 2 Net acquisition of financial assets. . . 4.2 4.8 3.7 4.2 5.3 2.0 5.5 7.4 6.1 1.1 9.9 4.0 11.4 .7 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 -1.3 3 4 Treas. currency and SDR ctfs .7 .5 .2 * .7 .1 .2 .3 1.9 .3 .4 .3 .5 .7 4 5 F.R. float .3 * .9 .1 .8 -1.9 3.4 1.4 2.4 -3.1 1.2 2.7 -2.1 -2.1 5 6 F.R. loans to domestic banks .1 • * .2 .7 .4 -2.0 -.2 .4 1.6 -1.2 -2.1 1.5 6 7 Credit mkt. instruments 3.5 4.8 3.7 4.2 5.0 4.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 1.9 7 8 U.S. Govt, securities 3.5 4.8 3.8 4.2 5.0 4.2 -.4 9.2 1.1 5.4 7.9 5.6 15.7 2.2 8 9 Net increase in liabilities 4.2 4.7 3.7 4.2 5.3 2.0 5.5 7.4 6.1 1.1 9.9 4.0 11.4 .7 9 10 Member bank reserves 1.3 1.3 .7 .3 2.1 -2.8 3.0 .3 4.3 -1.3 5.7 -.5 9.7 -4.7 10 11 Vault cash of coml. banks 3 .6 .5 1.3 .1 -.3 .9 . 1 -.5 -1.5 -.2 -.4 1.0 .6 .8 11 Demand deposits and currency 12 U.S. Government .2 .9 -1.0 .5 -.4 -.1 .1 2.3 -1.2 -3.2 2.3 .6 -1.3 -.5 1122 13 Foreign 4 .2 * .1 -.1 * • — 1 -.1 .3 -.2 -.2 -.1 .2 -.1 13 14 Currency outside banks 2.0 2.1 2.4 2.8 3.5 3.7 2.'5 4.2 3.7 5.6 3.2 1.5 3.2 6.2 14 15 Other -.1 * .2 .6 .4 .2 -.2 1.2 .4 .5 -.8 1.6 -1.1 -1.0 15 Commercial banks and affiliates 5 Current surplus 2.5 2.3 3.0 3.5 3.5 3.5 3.6 3.6 3.5 3.4 3.6 3.6 3.8 3.5 1 2 Net acquisition of financial assets. .. 20.1 39.9 44.0 19.7 38.0 35.5 14.9 9.3 31.9 30.5 55.2 34.3 57.8 62.0 2 3 Total loans and investments..... 16.8 36.9 39.7 16.5 29.5 33.8 4.2 18.9 10.1 27.4 52. 28.4 36.7 59.8 3 4 Credit market instruments 16.2 35.4 38.4 17.7 28. 29.5 7.3 18.5 10.8 33.5 43.0 25.4 40.3 60.6 4 5 U.S. Government securities -3.6 9.3 3.4 -9.5 9.0 -7.2 -9.5 -5.2 .5 6.8 11.0 17.6 2.8 15.6 5 6 Direct -3.4* 6.3 2.2 -9.3 5.8 -8.8 -7.6 -6.2 -.7 6.8 8.9 8.0 -.6 12.2 6 7 Agency issues .3 1.1 1. 4.1 .1 1.2 4.1 2.9 1.4 2.3 9.7 4.2 3.6 7 8 Loan partic. certificates.. -.2 2.7 .2 -1.3 -.9 1.5 -3.0 -3.1 -1.6 -1.5 -.3 -.1 -.2 8 9 Other securities and mtg 6.6 14.3 15.5 5.5 13.2 8.4 3.0 1.5 7.4 9.5 17.7 18.0 26.1 25.3 9 10 State and local obligations. 1.9 9.0 8.6 .4 10.1 2.3 -.9 -1.5 5.0 8.0 14.5 12.9 17.9 13.4 10 11 Corporate bonds .1 .8 .3 -.1 .7 .1 -.2 -.2 .9 1.8 1.5 1.5 11 12 Home mortgages 2.4 2.4 3.5 3.0 .9 3.3 2. 2. 1.0 .6 1. .9 3.7 7.0 12 13 Other mortgages 2.3 2.2 3.2 2.3 1.4 2.7 2.0 1. 1.4 2.0 2.4 3.0 3.4 13 14 Other credit exc. security. . 13.3 11.7 19.5 21.7 6.0 28.4 13.8 22.2 2.8 17.2 14.3 -10.2 11.4 19.7 15 Consumer credit 2.6 1.8 4.9 3.3 1.9 3.9 2.7 3.0 1.0 2.3 3.8 .4 1.8 4.1 16 Bank loans n.e.c 9.1 7.5 15.7 17.8 2.1 24.0 11.1 17.6 5.1 10.1 5.3 -11.8 10.2 15.1 17 Open market paper 1.6 2.4 -1.1 .5 2.0 .5 1.6 -3.3 4.8 5.2 1.1 -.6 .6 18 Security credit .5 1.5 1.3 -1.1 1.3 4.3 -3.1 .4 -.7 -6.1 9.1 3.0 -3.6 -.8 19 Vault cash & mem. bk. reserves. 1.9 1.8 2.0 .4 1.8 -1.9 3.1 -.2 2.8 -1.5 5.4 .4 10.3 -3.8 20 Loans to affiliate banks. .6 .7 .4 .3 .5 -.1 -.3 .2 -.2 20 21 Miscellaneous assets 1.4 1.2 2.3 2.2 6.6 3.0 7.3 18.5 4.7 -2.0 5.2 9.1 6.2 21 22 Net increase in liabilities... 18.9 38.1 42.2 18.0 35.9 32.9 13.3 7.7 30.2 28.1 53.0 32.5 55.3 58.4 22 23 Demand deposits, net... .3 11.9 13.3 5.2 7.1 6.7 8.4 6.8 2.3 7.7 3.5 14.9 -3.0 32.4 23 24 U.S. Government -.5 .2 -.2 * 2.8 1.8 1.8 1.9 2.3 5.2 -1.5 5.4 -17.8 17.4 24 25 Other 7 11.6 13.5 5.2 4.2 4.9 6.7 4.8 2.4 5.1 9.4 14.8 15.0 25 26 Time deposits 13.3 23.8 20.6 -9.7 36.7 -9.0 -21.2 -1.1 11.6 28.5 65.6 41.3 60.6 30.0 26 27 Large negotiable CD's. -.8 4.7 3.1 -12.6 15.2 -14.0 -14.2 -3.3 5.3 7.6 34.3 13.4 5.8 4.0 27 28 Other 14.0 19.1 17.4 2.9 21.6 5.0 -7.0 2.2 6.3 20.9 31.3 27.9 54.8 26.0 28 29 Commercial paper issues. 4.2 -1.9 4.2 5.0 6.9 8.9 4.1 -11.5 -8.9 -2.6 .2 29 30 Bank security issues .2 .1 .3 .2 31 F.R. float .1 -1.9 3.4 1.4 2.4 -3.1 1.2 2.7 -2.1 -2.1 31 32 Borrowing at F.R. Banks... * .2 .7 .4 -2.0 -.2 .4 1.6 -1.2 -2.1 1.5 32 33 Loans from affiliates .6 .1 .7 .4• .3 .5 -.3 .2 1.8 -.2 33 34 Profit tax liabilities -.1 -.1 .3 .6 -.3 1.0 .3 .5 '.2* 34 35 Liabilities to fgn. branches. 2.7 .2 1.8 7!O -6.8 14.6 4.3 -5.3 -4.4 -2.9 -5.7 -14*. 3 -16.2 -5.4 35 36 Other misc. liabilities 2.3 2.2 5.5 10.4 -.6 16.0 12.5 1.2 7.9 -6.6 -1.7 -2.0 18.4 1.9 36 37 Discrepancy .4 .9 1.0 .3 .1 -1.0 37 Memo: Amounts included above for unconsolidated bank affiliates: 38 Net acquisition of iBnancial assets. 4.4 -1.0 7.7 6.6 12.0 4.8-11.8 -9.0 1.4 .6 38 39 Bank loans n.e.c 3.8 -1.1 7.0 6.2 11.5 4.9-11.5 -9.2 -.4 .8 39 40 Loans to affiliate banks .6 .1 .7 .4 .5 -.1 -.3 .2 1.8 -.2 40 41 Net increase in liabilities. 4.4 -1.0 7.7 6.6 .9 12.0 4.8 -11.8 -9.0 1.4 .6 41 42 Commercial paper issues. 4.2 -1.9 4.2 5.0 6.9 8.9 4.1 -11.5 -8.9 -2.6 .2 42 43 MisceUaneous liabilities.. .2 .9 3.5 1.5 -5.9 3.1 .7 -.2 4.0 .5 43 NOTE.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • FLOW OF FUNDS A 7.1 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 II III IV I II III IV I II Private nonbank financial institutions—Total ^ 1 Current surplus 1.6 1.3 .2 -.2 1.5 .6 .1 .9 .1 .9 2.0 3.0 3.1 2.5 1 2 Physical investment (life insurance). .5 .6 .7 .8 .9 .8 .8 .8 .9 .9 .9 .9 1.0 1.0 2 3 Net acquisition of financial assets... 34.9 42.4 50.0 48.4 51.4 63.9 42.0 49.6 33.5 45.9 63.7 62.6 87.2 74.2 3 4 Demand deposits and currency. . -.1 1.0 .9 .5 1.3 1.4 . 1 1.5 .7 1.2 1.3 2.0 1.7 -.1 4 5 Time deposits (MSB) » • * -.1 -.2 .2 .3 5 6 Svgs. and loan shares (Cr. union) -.2 .3 — 1 * -.2 " -; i ""'.6 1.8 1.5 6 7 Corporate shares 5.9 8.3 9^4 12.7 11.2 13.7 12.0 15.1 14.7 9.2 6.4 14.3 21.9 19.5 7 8 Credit market instruments 27.3 27.1 36.2 36.0 36.6 49.9 34.0 26.9 19.8 36.9 51.8 37.7 50.4 55.1 8 9 U.S. Government securities.. .4 -1.9 2.2 -.8 3.7 4.8 -4.7 -.8 -.7 9.8 2.2 3.7 4.0 2.8 9 10 State and local oblig .8 1.2 1.2 1.0 1.4 1.2 1.5 .7 1.9 -.2 2.0 1.9 1.3 .6 10 11 Corporate and foreign bonds. 8.0 11.1 9.6 6.6 10.4 11.3 6.4 1.8 2.9 12.9 14.3 11.4 16.2 14.5 11 12 Home mortgages 5.1 8.0 8.6 8.6 7.0 11.2 7.1 5.5 1.6 4.5 10.2 11.7 12.7 17.0 12 13 Other mortgages 6.8 6.7 7.0 6.7 8.7 6.3 7.2 7.4 7.0 8.2 8.4 11.3 10.1 14.3 13 14 Consumer credit 2.9 1.4 3.8 4.2 .6 5.4 3.6 3.4 2.3 2.2 -.4 -1.8 .8 2.5 14 15 Other loans 3.3 .6 3.8 9.7 4.8 9.8 12.9 8.9 4.8 -.4 15.2 -.3 5.3 3.5 15 16 Security credit —. 1 2.8 2.0 -2.6 -1.4 -.6 -5.2 1.8 -4.6 -3.4 .4 2.1 2.1 2.6 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 -.5 .6 3.5 1.7 .9 3.3 4.7 8.7 -5.1 18 19 Net increase in liabilities 34.7 43.3 49.7 50.5 51.6 64.3 44.9 50.9 33.2 46.2 64.2 63.0 83.2 70.5 19 20 Time and savings accounts 7.0 17.0 12.8 8.1 17.2 8.8 5.7 4.5 5.2 15.8 21.9 25.8 52.3 43.3 20 21 Insurance and pension reserves. 16.7 17.5 18.5 18.7 21.0 22.4 18.7 18.9 18.7 22.7 19.8 22.8 25.3 24.3 21 22 Credit market instruments 2.9 -.8 6.7 12.4 3.8 14.7 14.2 12.6 4.5 5.0 3.8 1.9 3.7 -1.5 22 23 Finance company bonds .8 1.0 .8 1.6 2.5 2.2 1.4 1.3 1.3 2.3 2.8 3.8 5.5 2.5 23 24 Mtg. loans in process -.9 1.0 .2 » .6 .3 -.3 -.6 -1.2 •k 1.6 2.2 1.6 3.8 24 25 Bank loans n.e.c -1.3 -2.1 2.3 2.1 -.5 4.9 -.6 3.4 -2.3 1.2 3.0 -4.1 5.7 2.2 25 26 Other loans 4.3 -.7 3.3 8.6 1.2 7.4 13.8 8.5 6.8 1.4 -3.6 1 -9.0 -10.0 26 27 Finance company paper... 3.4 1.8 2.5 4.6 -.2 4.3 8.5 3.7 2.4 .6 -3.9 .3 -7.8 .8 27 28 FHLB loans .9 -2.5 .9 4.0 1.3 3.1 5.3 4.8 4.4 .8 .3 -.2 -1.2 -10.8 28 29 Investment company shares 3.7 2.6 4.7 5.7 2.4 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 29 30 Security credit .6 2.1 2.0 -2.0 1.2 3.8 -5.1 2.6 -1.5 -7.4 9.4 4.5 -.5 -3.5 30 31 Taxes payable • -.1 .2 1 .2 -.1 .3 .1 * -.1 .4 .7 .1 -.5 31 32 Miscellaneous liabilities 3.8 5.0 4.8 7.5 5.8 9.9 4.9 8.0 4.7 7.4 5.6 5.3 2.0 8.7 32 33 Discrepancy .8 1.5 -.9 1.1 .9 .3 2.2 1.4 -1.0 .3 1.5 2.6 -1.9 -2.1 33 Savings and loan associations 1 Net acquisition of financial assets.. 4.6 9.7 9.7 9.5 14.3 10.2 8.2 6.8 5.5 12.7 17.9 21.2 37.6 26.8 1 2 Demand deposits & currency 2, -.5 -.3 -.4 -.2 .1 -.5 « .2 « .2 .4 .7 2 3 Credit market instruments 4.2 9.1 10.1 9.9 11.5 11.8 "9.0 6.1 4.0 10.4 14:2 17.2 31.7 31.0 3 4 U.S. Govt, securities .4 1.6 .7 .3 1.2 .5 .1 -1.3 -.3 3.2 1.5 .2 14.4 5.1 4 5 Home mortgages 2.9 6.0 7.2 7.8 7.2 9.5 7.0 5.5 3.0 4.9 9.3 11.7 12.1 17.8 5 6 Other mortgages .9 1.5 2.1 1.8 3.0 1.8 2.0 1.8 1.3 2.2 3.4 5.3 5.2 8.0 6 7 Consumer credit * * . 1 * * 1 * -.1 -.1 .1 1 * -.1 .1 7 8 Misc. financial trans .9 .9 -.2 2.7 -I!2 -.9 .8 1.3 2.3 3.6 3.8 5.6 -4.9 8 9 Net increase in liabilities 4.0 9.3 8.9 8.6 13.6 9.1 7.4 5.4 4.9 11.8 17.1 20.5 36.9 26.1 9 10 Savings shares 3.6 10.6 7.5 4.1 11.1 4.8 2.9 .7 2.0 9.8 15.6 16.9 36.8 28.6 10 11 Credit market instruments .1 -1.7 1.1 4.1 1.9 3.5 5.1 4.6 2.5 .8 1.7 2.4 -.3 -5.4 11 12 Mtg. loans in process -.9 1.0 .2 * .6 .31 -.3 -.6 -1.2 * 1.6 2.2 1.6 3.8 12 13 Borrowing from FHLB .9 -2.5 .9 4.0 1.3 3.1 5.3 4.8 4.4 .8 .3 -.2 -1.2 -10.8 13 Mutual savings banks 1 Net acquisition of financial assets ^. . 2.8 5.4 4.6 3.1 4.7 3.5 1.8 2.1 2.6 5.2 5.0 6.0 13.4 12.5 1 2 Corporate shares * .2 .3 .2 .3 .2 .2 .2 .3 .3 .3 .3 .3 .3 2 3 Credit market instruments 2.6 5.0 4.1 2.9 3.9 3.3 1.2 2.6 2.0 4.5 3.9 5.1 11.9 11.7 3 4 U.S. Govt, securities -.5 -.3 -.2 -.5 .2 -.5 -1.0 -.8 -.6 .6 .5 .3 -.5 1.1 4 5 State and local govt, securities. -.1 * * » * * « • • * * .2 .3 5 6 Corporate bonds .3 2.1 1.3 .3 1.4 .8 -.3 -.1 .9 1.7 .9 "'2.2 7.8 6.2 6 7 Home mortgages 1.6 1.8 1.4 1.4 .9 1.5 1.1 1.4 .2 1.1 1.1 1.3 .9 1.0 7 8 Other mortgages 1.1 1.4 1.4 1.3 .9 1.2 1.0 1.7 .5 .8 1.0 1.3 2.1 2.8 8 9 Savings deposits 2.6 5.1 4.2 2.6 4.4 2.7 1.5 2.2 1.6 4.4 4.7 7.0 12.4 11.6 9 10 Miscellaneous liabilities * .1 .1 .2 .1 .5 * .3 .1 .5 .1 -.4 -.1 .4 10 Life insurance companies 1 Net acquisition of financial assets ^. 8.3 8.7 9.8 9.2 9.3 9.2 9.1 9.2 9.6 9.4 9.1 9.2 13.9 11.0 1 2 Corporate shares .3 1.0 1.4 1.7 2.0 1.8 1.1 2.1 2.2 2.3 .5 2.9 4.5 3.4 2 3 Credit market instruments 7.8 7.4 7.7 6.6 6.8 8.7 7.5 4.6 6.2 7.2 8.6 5.3 7.8 8.1 3 4 U.S. Govt, securities -.3 -.3 — 1 -.4 * * -.8 .1 -.5 .5 .1 -.3 -.7 .4 4 5 State and local obligations.. -.4 -.1 '.2 * 1 * .2 -.1 * -.1 .2 .1 1 .3 5 6 Corporate bonds 2.4 3.8 3.9 1.5 I!5 2.7 1.5 -.6 .7 2.4 1.3 1.8 3'A 4.7 6 7 Home mortgages .6 -.5 -.7 -1.1 -1.4 -.6 -.8 -2.1 -1.3 -1.2 -1.2 -1.8 -1.5 -2.1 7 8 Other mortgages 4.0 3.4 3.2 3.1 3.7 2.9 3.2 3.8 4.0 3.7 3.3 3.9 2.4 2.5 8 9 Other loans 1.5 1.0 1.2 3.4 2.9 3.7 4.2 3.6 3.4 1.9 5.0 1.5 4.1 2.3 9 10 Net increase in liabilities 7.9 8.8 9.1 9.2 9.3 9.2 9.3 9.3 9.3 9.3 9.3 9.3 12.1 9.5 10 11 Life insurance reserves 4.5 4.7 4.6 4.8 4.8 4.9 4.9 4.8 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 3.0 3.0 3.0 3.1 3.1 5.9 3.4 12 13 Other liabilities 1.2 1.6 1.5 1.4 1.4 1.5 1.3 1.5 1.4 1.6 1.3 1.2 1.3 1.6 13 Digitized for FRNOATSEE.—RF or notes see p. A-7.3. http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 73.8 FLOW OF FUNDS • OCTOBER 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 II III IV I II III IV I II Private pension funds 1 Net acquisition of financial assets 6.1 6.3 6.4 6.3 6.6 7.5 6.1 8.3 5.7 5.3 6.2 9.0 7.8 7.2 2 Demand deposits and currency... • .4 .3 * .2 1.6 -.3 .4 .3 -.3 .8 -.1 .7 -1.3 3 Corporate shares 3.7 4.6 4.7 5.4 4.6 4.8 4.5 6.5 5.2 3.8 2.7 6.8 9.6 11.6 4 Credit market instruments 1.9 .5 1.1 .9 2.0 .7 2.7 .7 .9 1.8 3.2 2.1 -3.3 -2.5 5 U.S Govt, securities -.5 -.6 .4 .1 .4 .9 -.5 -.4 .6 2.1 -.6 -.1 -1.2 6 Corporate Ijonds 1.9 .9 .7 .6 1.-6 .7 1.6 .8 1 1 1.2 1.3 2.8 -2.6 -.5 7 .5 .1 * .1 * * .3 .3 \l * -.1 » -.6 -.8 8 Miscellaneous .6 .8 .3 .1 -.2 .4 -.7 .8 -.7 * -.4 .3 .8 -.6 State and local govt, employee retirement funds 1 Net acquisition of financial assets.. 4.0 3.9 4.6 4.6 6.6 7.1 4.8 2.8 5.2 9.5 5.7 5.9 6.8 8.9 1 2 Demand deposits and currency .1 .1 » » .2 * * * -.4 .6 -.2 .7 .5 2 3 Corporate shares .5 .7 1.3 1.7 2.1 2.1 1.5 2.1 1.9 2.2 1.5 2.9 2.8 3.1 3 4 Credit market instruments 3.4 2.8 3.2 2.9 4.1 5.1 3.2 .6 3.5 6.5 4.2 2.1 3.9 5.1 4 5 U.S. Govt, securities .2 -1.0 .4 -.2 -.3 -.3 * -.8 -.1 -.4 * -.8 -1.2 -1.0 5 6 Direct .1 -1.1 -.3 -.4 -.4 -.4 -.4 -.8 -.2 -.5 -.7 -.6 -.4 6 7 U.S. Govt, agency sec .1 .1 .6 .2 • .1 .4 , 1 1 .1 * * -.6 -.7 7 8 State and local obligations.. -.1 -.1 * -.2 -.3 — 1 * -15 -A -.6 -.2 -.5 -.1 -.2 8 9 Other cr. mkt. instruments. . 3.8 4.5 4.2 5.1 6.9 7!6 4.7 3.9 5.6 9.8 6.0 6.2 7.9 9.4 9 10 Corporate bonds 2.5 3.4 2.5 3.0 3.9 5.2 2.3 1.9 2.6 6.3 3.9 2.7 4.8 5.4 10 11 Mortgages .8 .5 .4 .3 .9 .3 .9 — 1 1.1 1.3 .6 .6 .3 .9 11 12 Other .4 .1 * .2 -.1 * .1 .2 .2 .2 .2 .1 .2 12 Other insurance companies 1 Current surplus .5 .4 .1 » .5 * • -.1 -.1 .2 .8 1.1 1.1 1.0 1 2 Net acquisition of financial assets.. 2.1 2.0 3.1 3.0 3.7 4.6 .5 3.4 3.7 3.6 3.7 3.7 4.6 6.1 2 3 Demand deposits and currency. * * ..11 * * -.1 -.1 4> * « * * • * 3 4 Corporate shares .4 .3 ..88 1.0 1.0 1.2 .3 1.3 1.4 1.1 .1 1.3 1.5 2.7 4 5 Credit market instruments 1.5 1.4 1.9 1.6 2.3 3.1 -.2 1.7 2.0 2.0 3.2 2.0 2.7 3.0 5 6 U.S. Government securities.. -.4 -.7 -.2 -.4 * 1.0 -2.2 -.3 * . 1 .5 -.4 * -.5 6 7 State and local oblig 1.3 1.4 1.0 1.2 1 1 1.3 1.3 1.2 1.1 1 1 1.0 1.0 1.2 1.7 7 8 Corporate bonds .6 .7 1.2 .8 I!2 .8 .7 .8 .8 !8 1.6 1.4 1.5 1.7 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 4.9 1.4 3.9 3.6 3.6 3.8 3.9 3.8 4.3 11 12 Discrepancy .1 .5 -.5 .4 .6 .3 .9 .4 -.2 .2 .9 1.3 .3 -.8 12 Finance companies 1 Net acquisition of financial assets.. 2.6 .9 5.5 8.0 1.9 11.4 8.7 7.5 2.1 4.0 2.0 -.6 4.1 4.2 1 2 Demand deposits and currency. .2 .2 .2 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 .3 2 3 Home mortgages -.6 .4 .6 .3 .1 .8 -.5 .2 -.7 -.4 1.2 .4 1.7 .9 3 4 Consumer credit 1.8 .6 2.4 2.6 -.6 3.5 2.2 2.1 1.3 .9 -2.1 -2.6 -.8 .3 4 5 Other loans (to bus.) 1.2 -.4 2.2 4.8 2.1 6.7 6.7 4.9 1.2 3.2 2.6 1.3 3.0 2.6 5 6 Net increase in liabilities 2.8 .9 5.5 8.2 1.9 11.2 9.1 8.0 2.0 4.2 2.1 -.6 4.0 3.9 6 7 Corporate bonds .8 1.0 .8 1.6 2.5 2.2 1.4 1.3 1.3 2.3 2.8 3.8 5.5 2.5 7 8 Bank loans n.e.c -1.4 -2.0 2.3 2.1 -.5 4.7 -.7 2.9 -1.7 1.3 3.2 -4.7 6.4 .5 8 9 Open market paper 3.4 1.8 2.5 4.6 -.2 4.3 8.5 3.7 2.4 .6 -3.9 .3 -7.8 .8 9 Open-end investment companies 1 Current surplus -1.2 -1.5 -2.2 -2.4 -.8 -1.8 -2.1 -.8 -1.4 -1.1 -.7 -.1 -.3 -1.2 1 2 Net acquisition of financial assets.. 2.5 1.1 2.5 3.3 1.6 3.0 4.1 3.4 .2 1.6 2.6 1.9 -.1 -1.4 2 3 Demand deposits and currency. » .2 .1 -.1 * -.1 -.1 * * -.5 .3 .2 .4 • 3 4 Corporate shares 1.0 1.5 1.5 2.5 1.1 3.1 3.3 4.3 4.2 -1.0 -.8 2.1 2.1 .9 4 5 Credit market instruments 1.5 -.5 .9 .9 .5 * .9 -.9 -3.9 3.2 3.1 -.4 -2.5 -2.3 5 6 U.S. Govt, securities .6 -.5 .2 -.5 .2 * .2 -1.3 -.8 8.3 -7.0 .1 .2 -1.0 6 7 Corporate bonds .4 * .4 .2 .7 .5 -.6 .3 -2.9 * 3.2 2.4 • -.4 7 8 Open market paper .5 « .3 1.2 -.4 -.4 1.3 .2 -.3 -5.2 6.9 -2.9 -2.7 -.8 8 9 Net stock issues 4 3.7 2.6 4.7 5.7 2.4 4.8 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 9 NOTE.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • 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 II III IV I II III IV I II Rest of the world 1 Net U.S. exports 5.3 5.2 2.5 2.0 3.6 1.2 2.8 2.7 3.5 4.2 4.0 2.7 4.2 -.5 1 2 U.S. exports 43.4 46.2 50.6 55.6 62.9 56.9 58.3 59.2 61.5 63.2 63.7 63.2 66.1 66.4 2 3 U.S. imports 38.1 41.0 48.1 53.6 59.3 55.7 55.5 56.6 58.0 59.0 59.7 60.5 61.9 66.9 3 4 Transfer receipts from U.S 2.8 3.0 2.9 2.9 3.1 3.4 2.8 3.0 3.0 3.0 3.2 3.3 3.1 3.2 4 5 Current account balance i -2.4 -2.2 .4 .9 -.4 2.2 -.1 .3 -.5 -1.2 -.8 .7 -1.1 3.7 5 6 Net financial investment -2.0 -1.2 .9 3.7 .6 4.2 4.1 .4 .6 .3 1.5 .1 4.1 12.3 6 7 Net acquis, of financial assets 3.3 7.6 8.5 10.3 5.2 15.2 12.4 -.2 8.8 4.8 5.2 2.0 12.6 23.2 7 8 Gold and SDR's 2 .6 1.2 1.2 -1.0 .8 -1.3 * -2.8 -.4 -.1 1.4 2.2 .9 2.6 8 9 U.S. dem. dep. and currency... -1.0 .3 .3 .3 .3 .6 .6 » 1.4 -.4 -.5 .5 — 1 -.2 9 10 Time deposits .8 1.2 -.3 1.0 -1.9 -1.4 .4 5.7 4.3 -3.5 -3.2 -5.1 -1.2 2.6 10 11 U.S. corporate shares -.3 .7 2.0 1.6 .7 .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 -1.8 2.7 -3.7 8.0 8.2 A.l 15.5 26.1 28.8 12 13 Other credit market instr.3 .9 .1 .8 1.5 1.1 2.1 1.7 .7 1.8 1.7 -1.1 2.3 .4 2.0 13 14 Other financial assets 4 4.7 2.0 4.9 8.7 -5.0 16.4 6.3 -2.1 -6.0 -.7 2.3 -15.4 -13.7 -12.7 14 15 Net increase in liabilities 5.3 8.7 7.6 6.7 4.6 11.0 8.3 -.7 8.1 4.5 3.7 1.9 8.5 10.9 15 16 Official U.S. fgn. exchanges ... * 1.1 2.1 .3 -2.5 —. 1 2.8 -1.9 -2.3 -4.2 -1.7 -1.9 -2.5 -.7 16 17 Foreign corporate shares -.3 .1 .2 .5 * 1.2 .4 .1 -.4 -.2 .4 .3 .3 .5 17 18 Corporate bonds .7 1.2 1.1 1.0 .8 .8 1.7 .4 1.1 -.3 1.6 .9 1.2 1.1 18 19 Loans ^ 1.1 2.8 1.7 2.2 1.7 4.0 .3 1.9 1.9 2.1 .3 2.7 3.6 4.8 19 20 Other liabilities 7 3.8 3.6 2.6 2.7 4.5 5.1 3.2 -1.1 7.9 7.0 3.2 -.2 6.0 5.3 20 21 Discrepancy 8 -.4 -1.1 -.5 -2.8 -1.1 -2.0 -4.1 -1.1 -1.5 -2.2 .5 -5.2 -8.6 21 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. 10 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 shown below. Rest of the world 3 Govt, life insurance, employee retirement, and R.R. retirement 1 Line 4 minus line 1. The current balance is shown here from the programs. viewpoint of the rest of the world and is thus opposite in sign from U.S. 4 Securities of sponsored credit agencies only. balance of payments statements and U.S. national income accounts. 5 Mainly official foreign exchange and IMF position of Treasury. 2 Net purchases of gold and Special Drawing Rights from the U.S. only. Includes net purchases of Special Drawing Rights, which are assets of Excludes acquisitions of gold from outside the U.S. Also excludes January the Exchange Stabilization Fund. Initial allocation of SDR's in January allocation of SDR's. is excluded, however, from these tables on transactions. 3 Corporate bonds and acceptances. 6 Loan participation certificates and securities issued by Export-Import 4 Trade credit, direct investment in the United States, bank liabilities Bank, GNMA, CCC, Federal Housing Administration, and TVA. In- to foreign branches, deposits at agencies of foreign banks, security credit, cludes mortgage liabilities of Defense Dept. and Coast Guard and block and unallocated assets. sales of Farmers Home Administration insured notes. 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 • OCTOBER 1971 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1970'- 1971 Line Credits+; debits- 1969 1970'- I II III IV I 11" Summary—Seasonally adjusted 1 Merchandise trade balance i 660 2,110 513 751 704 142 269 -1,040 2 Exports 36,490 41,980 10,241 10,582 10,696 10,461 11,030 10,716 3 Imports -35,830 -39,870 -9,728 -9,831 -9,992 -10,319 -10,761 -11,756 4 Military transactions, net -3,341 -3,371 -908 -808 -884 -770 -667 -677 5 Travel and transportation, net -1,780 -1,979 -448 -500 -553 -478 -427 -632 6 Investment income, net 2 5,975 6,242 1,577 1,469 1,571 1,626 1,760 2,155 7 U.S. direct investments abroad 7,340 7,906 2,039 1,905 1,973 1,988 2,033 2,419 8 Other U.S. investments abroad 3,199 3,503 886 886 882 851 864 820 9 Foreign investments in the United States -4,564 -5,167 -1,348 -1,322 -1,284 -1,213 -1,137 -1,084 10 Other services, net 497 588 147 133 157 150 212 172 11 Balance on goods and services ^ 2,011 3,592 881 1,045 995 670 1,147 -22 12 Remittances, pensions and other transfers -1,266 -1,410 -338 -362 -359 -351 -342 -357 13 Balance on goods, services and remittances 745 2,182 543 683 636 319 805 -379 14 U.S. Government grants (excluding military) -1,644 -1,739 -418 -391 -444 -485 -428 -485 15 Balance on current account -899 444 125 292 192 -166 377 -864 16 U.S. Government capital flows excluding nonscheduled repayments, net 4 -2,106 -1,837 -511 -480 -396 -450 -602 -711 17 Nonscheduled repayments of U.S. Government assets -87 244 88 114 2 40 4 102 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies 263 -436 -30 -224 82 -263 -82 -22 19 Long-term private capital flows, net -50 -1,453 -969 -272 -220 7 -1,003 -1,646 20 U.S. direct investments abroad -3,254 -4,445 -1,358 -1,257 -897 -934 -1,370 -1,315 21 Foreign direct investments in the United States 832 969 486 105 218 160 92 -24 22 Foreign securities -1,494 -942 -210 93 -488 -337 -353 -396 23 U.S. securities other than Treasury issues 3,112 2,190 304 374 720 792 559 206 24 Other, reported by U.S. banks 477 199 31 68 44 56 -121 -213 25 Other, reported by U.S. nonbanking concerns 277 576 -222 345 183 270 190 96 26 Balance on current account and long-term capital ^ -2,879 -3,038 -1,297 -570 -340 -832 -1,306 -3,141 27 Nonliquid short-term private capital flows, net -602 -545 -115 -140 -115 -175 -396 -454 28 Claims reported by U.S. banks -658 -1,015 -162 -268 -189 -396 -85 -143 29 Claims reported by U.S. nonbanking concerns -35 -360 -116 -23 -50 -171 -125 -66 30 Liabilities reported by U.S. nonbanking concerns 91 830 163 151 124 392 -186 -245 31 Allocations of special drawing rights (SDR) 867 217 217 217 216 180 179 32 Errors and omissions, net -2,603 -1,104 -59 -375 -437 -233 -1,026 -2,335 33 Net liquidity balance -6,084 -3,821 -1,254 -868 -675 -1,024 -2,548 -5,751 34 Liquid private capital flows, net 8,786 -6,000 -1,610 -536 -1,400 -2,454 -2,990 45 35 Liquid claims 124 242 262 -160 -17 157 -297 104 36 Reported by U.S. banks -209 -119 140 -127 -53 -79 -72 38 37 Reported by U.S. nonbanking concerns 333 361 122 -33 36 236 -225 66 38 Liquid liabilities 8,662 -6,242 -1,872 -376 -1,383 -2,611 -2,693 -59 39 To foreign commercial banks 9,166 -6,507 -1,863 -441 -1,315 -2,888 -3,042 -85 40 To international and regional organizations -63 179 142 -124 82 79 271 174 41 To other foreigners -441 86 -151 189 -150 198 78 -148 42 Official reserve transactions balance 22,,770022 --99,,882211 --22,,886644 -1,404 --22,,007755 --33,,447788 --55,,553388 -5,706 Financed by changes in: 43 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Government -162 535 -266 735 -12 77 -8 -8 44 Nonliquid liabilities to foreign official agencies reported by U.S. banks -836 -810 -154 -235 -233 -188 -203 -161 45 Liquid liabilities to foreign official agencies -517 7,619 3,020 99 1,736 2,765 5,067 5,216 46 U.S. official reserve assets, net -1,187 2,477 264 805 584 824 682 659 47 Gold -967 787 -44 14 395 422 109 456 48 SDR -851 -270 -254 -251 -76 -55 17 49 Convertible currencies 814 2,152 831 818 34 469 373 -66 50 Gold tranche position in IMF -1,034 389 -253 227 406 9 255 252 Memoranda: 51 Transfers under military grant programs, (excluded from lines 2, 4, and 14) 756 613 137 191 116 169 191 162 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20) 2,532 (5) (5) ((55)) (5) ((55)) ((55)) ((55)) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21) 431 (5) (5) (5) ((55)) ((55)) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 75 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1970 1971 CCrreeddiittss ++,, ddeebbiittss —— 11996699 11997700 I II III IV I IIP Balances excluding allocations of SDR's—Seasonally adjusted Net liquidity balance -6,084 -4,688 -1,471 -1,085 -892 -1,240 -2,728 -5,930 Official reserve transactions balance 2,702 -10,688 -3,081 -1,621 -2,292 -3,694 -5,718 -5,885 Balances not seasonally adjusted Balance on goods and services (line 11) 2,011 3,592 1,234 1,300 -291 1,349 1,490 173 Balance on goods, services and remittances (line 13) 745 2,182 913 925 -657 1,002 1,165 -197 Balance on current account (line 15) -899 444 465 487 -1,060 552 709 -729 Balance on current account and long-term capital 4 (line 26)... -2,879 -3,038 -1,310 -899 -1,535 706 -1,280 -3,525 Balances including allocations of SDR's: Net liquidity (line 33) -6,084 -3,821 -510 -1,704 -1,454 -152 -1,887 -6,572 Official reserve transactions (line 42) 2,702 -9,821 -1,965 -2,069 -2,612 -3,174 -4,723 -6,444 Balances excluding allocations of SDR's: Net liquidity -6,084 -4,688 -1,377 -1,704 -1,454 -152 -2,604 -6,572 Official reserve transactions 2,702 -10,688 -2,832 -2,069 -2,612 -3,174 -5,440 -6,444 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. mil itary agencies. 4 Includes some short-term U.S. Govt, assets. 2 I1n, cludes 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 Business Economics. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Export surplus Period 1968 1969 1970 1971 1968 1969^ 1970 1971 1968 1969 1970 1971 Month: Jan... 2,814 32,161 3,406 3,735 2,687 3 2,002 3,223 3,686 127 159 183 49 Feb... 2,775 3 2,266 3,547 3,690 2,592 3 2,672 3,278 3,553 184 -406 269 136 Mar... 3 2,439 33,188 3,376 3,815 3 2,589 3 2,982 3,218 3,569 -150 206 158 245 Apr... 3 2,855 33,318 3,409 3,522 3 2,604 33,183 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 33,179 3,730 3,661 2,792 33,152 3,266 4,023 78 27 465 -363 July.. 2,858 3,182 3,699 3,495 2,725 3,074 3,255 3,799 133 108 444 -304 Aug... 3 2,950 3,366 3,592 3,678 2,872 3,163 3,346 3,937 78 203 246 -260 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 III.... 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 beentries 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 • OCTOBER 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 AArreeaa aanndd ccoouunnttrryy 11996622 11996633 11996644 11996655 11996666 11996677 11996688 11996699 11997700 II III IV I II Western Europe: Austria -143 -82 -55 -100 -25 4 Belgium -63 -40 -83 "'-58 "-iio France -456 "-sis -405 -884 -66i 600 ""325 '"-i29 "'-i29 -282 Germany, Fed. Rep. of. . . -225 500 Ireland -1 • • 1:2 "'-52 41 2 I N ta e l t y h erlands - 2 6 0 0 0 - -3 8 5 0 -60 -85 -2 -1 0 9 9 -76 "'-50 "-26 "' -30 "'-25 Spain •-i46 -32 -180 51 51 Switzerland 102 -81 -50 '"-30 '"-50 " ' -25 -50 -50 '-75 "-50 United Kingdom -387 ""329 618 150 -879 -835 Bank for Intl. Settlements.. 80 ''''266 Other ""-ii i "'-35 "'-49 ii "'-47 U "' -29 ""'-8 "' -ii is ""-6 Total -1,105 -399 -88 -1,299 -659 -980 -669 969 -204 -1 -27 -180 -85 -448 Canada 190 200 150 50 Latin American republics: Argentina 85 -30 -39 -25* -25 -28 -23 Brazil 57 72 54 25 -3 » -23 -23 Colombia 38 10 29 7 -1 Venezuela -25 Other •"' -5 '"-ii " •' 1:9 -13 ii '"-40 " ' -29 '"-80 " " 1:9 "".I4 "' -66 * Total 175 32 56 17 -41 9 -65 -54 -131 -9 -4 -111 * -4 Asia: Iraq -10 -4 -21 -42 Japan -56 "-ii9 "'-'119 Lebanon '•'-32 -11 "'-95 "'-35 Malaysia -1 -34 "'-io Philippines 25 26 i 9 40 * 3 " " -8 -1 Saudi Arabia -13 -50 • • 1: i Singapore -81 ii Other "'-47 "'-13 " -6 "'-14 '"-ii "'-22 -75 -9 "2-91 "-4i "'-7i ii ii Total -93 12 3 -24 -86 -44 -366 42 -213 -1 -39 -197 -15 10 All other -1 -36 -7 -16 -22 3-166 3-68 -1 -81 -2 -4 -75 -1 -4 Total foreign countries -833 -392 -36 -1,322 -608 -1,031 -1,118 957 4-631 -14 -73 4-563 -102 -445 Intl. Monetary Fund 5 6-225 177 22 -3 10 -156 -322 4142 -7 -11 Grand total -833 -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -14 -395 -422 -109 -457 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
OCTOBER 1971 • U.S. RESERVE ASSETS; POSITION IN THE IMF A 77 4. U.S. RESERVE ASSETS (In millions of dollars) E y n e d a r o f Total Tot G a o l 2 ld st T o r c e k a 1 s ury v c fo e u C c r r r o i e t r e i n e i b s g n - l n e - p R I o e M s s in i e F t r i 3 o v n e SDR's4 EE mm nn oo dd nn tt oo hh ff TToottaall Tot G a o l 2 ld st T o r c e k a 1 s ury vv cc ffoo ee CC uu cc rr ii rr rr oo ee ee tt rr ii ss nn ee ii bb gg nn -- 55 ll nn ee -- pp RR II oo ee MM ss ss iinn ii ee FF tt ii rr 33 oo vv nn ee SSDDRR''ss 44 1958. 22,540 20,582 20,534 1,958 1970 1959. 21,504 19,507 19,456 1,997 Sept.... 15,527 11,494 11,117 1,098 1,944 991 1960. 19,359 17,804 17,767 1,555 Oct.... 15,120 11,495 11,117 811 1,823 991 Nov.... 14,891 11,478 11,117 640 1,812 961 1961. 18,753 16,947 16,889 116 1,690 Dec.... 14,487 11,072 10,732 629 1,935 851 1962. 17,220 16,057 15,978 99 1,064 1963. 16,843 15,596 15,513 212 1,035 1971 1964. 16,672 15,471 15,388 432 769 Jan.. .. 14,699 11,040 10,732 491 1,700 1 ,468 1965. 15,450 613,806 613,733 781 6 863 Feb.... 14,534 11,039 10,732 327 1,700 1,468 Mar.... 14,342 10,963 10,732 256 1,680 1,443 1966. 14,882 13,235 13,159 1 ,321 326 Apr.... 14,307 10,925 10,732 257 1,682 1,443 1967. 14,830 12,065 11,982 2,345 420 May... 13,811 10,568 10,332 318 1,678 1,247 1968. 15,710 10,892 10,367 3,528 1,290 June. .. 13,504 10,507 10,332 322 1,428 1,247 1969. 7 16,964 11,859 10,367 72,781 2,324 July.... 13,283 10,453 10,332 250 1,433 1,147 1970. 14,487 11,072 10,732 629 1,935 851 Aug— 12,128 10,209 10,132 248 574 1,097 Sept.... 12,131 10,207 10,132 250 577 1,097 1 Includes (a) gold sold to the United States by the International Mon- 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. etary Fund with the right of repurchase, and (b) gold deposited by the 6 Reserve position includes, and gold stock excludes, $259 million gold IMF to mitigate the impact on the U.S. gold stock of foreign purchases subscription to the IMF in June 1965 for a U.S. quota increase which for the purpose of making gold subscriptions to the IMF under quota became effective on Feb. 23, 1966. In figures published by the IMF from increases. For corresponding liabilities, see Table 6. June 1965 through Jan. 1966, this gold subscription was included in the 2 Includes gold in Exchange Stabilization Fund. U.S. gold stock and excluded from the reserve position. 3 The United States has the right to purchase foreign currencies equiva- 7 Includes gain of $67 million resulting from revaluation of the German lent to its reserve position in the IMF automatically if needed. Under ap- mark in Oct. 1969, of which $13 million represents gain on mark holdings propriate conditions the United States could purchase additional amounts at time of revaluation. equal to the U.S. quota. See Table 5. 4 Includes initial allocation by the IMF of $867 million of Special Draw- NOTE.—See Table 23 for gold held under earmark at F.R. Banks for ing Rights on Jan. 1, 1970, and second allocation of $717 million of foreign and international accounts. Gold under earmark is not included SDR's on Jan. 1, 1971, plus net transactions in SDR's. in the gold stock of the United States. 5. U.S. POSITION IN THE INTERNATIONAL MONETARY FUND (In millions of dollars) Transactions affecting IMF holdings of dollars IMF holdings (during period) of dollars (end of period) U.S. transactions with IMF Transactions by re U se .S rv . e Period oth w e i r t h c o I u M n F tr ies p in o s I it M io F n P s t a u d io y b o n m s o ll s c f a e r r n i i s n p t s - by s g N I a o M e le l t d F s 1 T t c f i r o c o u a i r n r e n e r s s s e i g a n 2 i n c n - - I i d M n o c F l o la m n r e s e t P d u o rc l o l h a f a rs s e 3 s pu d r o c R i l h n l e a a - r s s e s c T h o an ta g l e Amount P q e U r u o . o c S f t e . a n t p ( e e r n i d o 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 1,935 197(^Sept.. 6 132 10 -16 253 379 3,216 62 1,944 Oct.. 129 -34 29 121 3,337 65 1,823 Nov.. 104 -3 -95 1 11 3,348 65 1,812 Dec.. 1,155 315 -73 21 1,417 4,765 71 1,935 -1 1971—Jan.. 250 -23 235 5,000 75 1,700 Feb.. -3 5,000 75 1,700 Mar.. 20 ""26' 5,020 75 1,680 -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 Aug.. '862* -3 859 6,126 91 574 Sept.. -3 -3 6,123 91 577 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. • OCTOBER 1971 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreign countries Liabilities to non- Monetary Fund arising monetary intl. and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Nonp 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 v e o e n l s t d t 2 - Total i i p S t n b l i t i o e h a a e b s r U n o b r y t m k r e i . r l t S s e d - - . - M n b G o a U a a o o t r b n n . e k S v l d d s e e t . s , t 4 - c m T b o U a r a o i n u a b e b n n . v r r l a S l y k e d d e e s . e r s - t t - - Total i i p t S n b l i t i e o h a a e b s r U n o b r y t m k r e i . r l S t s e d - - . - M n b G o a U a a o o t r b n . n e k S v l d d s e e t . s , t 4 - Total i i n p S t l b i t i o e h a a e U b s r n o b r y t . m k r i e S r l t e s d - - . - 6 M n b G a o U a a o o t r b n . n e k S v l d d s e e t . s , t ^ notes 1957 715,825 200 200 7,917 5,724 542 1958 777111666,,,888444555 200 200 8,665 5,950 552 1959 111999,,,444222888 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 1960 8 / \ / \ / \222 222 111 000 ,,, ,,, 000 999 222 999 777 444 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 12 2 8 8 6 7 6 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 2 4 5 1 7 7 5 5 0 0 7 7 7 9 5 1 1961 8 / \ 2 2 2 2 , , 8 9 5 3 3 6 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 8 8 3 3 0 0 1 1 0 0 , , 9 9 4 4 0 0 8 8 9 9 0 0 8 8 , , 2 3 7 5 5 7 7 7 , , 7 8 5 4 9 1 5 5 1 1 6 6 1 1 . . 9 9 4 4 8 9 7 7 0 0 3 4 1 1 , , 2 2 4 4 5 5 1962 8 / \ 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 5 9 9 7 7, , 9 9 1 1 1 1 4 4 4 4 8 8 2 2, , 1 1 9 6 5 1 , , 2 2 5 8 0 4 9 9 1 1 1 1 1963 8 //2266,,336611 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 \\2266,,332222 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 1964 8 / 1 2 2 8 9 , , 9 0 5 0 1 2 8 8 0 0 0 0 8 8 0 0 0 0 1 1 5 5 , , 4 4 2 2 8 4 1 1 3 3 , , 2 2 2 2 4 0 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 1 11 1 , , 0 0 0 5 1 6 1 1 0 0 , , 6 6 2 8 5 0 3 3 7 7 6 6 1 1 , , 7 7 2 2 2 2 8 81 1 8 8 9 9 0 0 4 4 1965 2299,,111155 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1966 8 / 1 / 1 22 22 99 99 ,, ,, 99 77 00 77 44 99 1 1 , , 0 0 1 1 1 1 2 2 1 1 1 1 8 80 0 0 0 1 1 3 3 , , 6 6 5 0 5 0 1 12 2 , , 5 4 3 8 9 4 8 8 6 6 0 0 2 2 5 5 6 6 1 1 4 4 , , 3 2 8 0 7 8 1 1 3 3 , , 8 6 5 8 9 0 5 5 2 2 8 8 9 90 0 5 6 5 5 8 8 1 0 3 3 2 2 5 5 1967 8 / 1 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 1 5 5 , , 6 6 5 4 3 6 1 14 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 15 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 1968 8 / 1 3 3 3 3 , , 8 6 2 1 8 4 1 1 , , 0 0 3 3 0 0 2 2 3 3 0 0 8 8 0 0 0 0 1 1 2 2 , , 5 4 4 8 8 1 1 1 1 1 , , 3 3 1 1 8 8 5 4 2 6 9 2 7 7 0 0 1 1 1 1 9 9 , , 5 3 2 8 5 1 1 1 8 8 , , 9 9 1 1 6 6 4 6 6 0 5 9 7 7 2 2 5 2 6 6 8 8 3 3 4 3 2 9 1969- Dec.8 f41,735 1,019 219 800 11,955 11,054 346 9 555 28,102 27,577 525 659 609 50 141,859 1,019 219 800 11,957 11,056 346 9 555 28,220 27,695 525 663 613 50 197a-July .. 43,471 1,010 210 800 16,565 15,756 380 429 25,138 24,597 541 758 705 53 Aug... 43,971 1,010 210 800 16,585 15,776 380 429 25,533 24,971 562 843 798 45 Sept... 44,178 587 187 400 17,741 16,932 380 429 25,088 24,521 567 762 717 45 Oct.. . 44,228 587 187 400 18,106 17,387 290 429 24,721 24,154 567 814 768 46 Nov... 44,467 579 179 400 19,941 19,223 289 429 23,160 22,570 590 787 741 46 Dec.'^s /43,264 566 166 400 20,041 19,306 306 429 21,812 21,165 647 845 821 24 143,258 566 166 400 20,057 19,333 295 429 21,788 21,223 565 847 821 26 1971-Jan.'-. 43,672 559 159 400 20,490 19,774 287 429 21,562 20,950 612 1,061 1,036 25 Feb.^ 44,076 559 159 400 22,321 21,600 292 429 20,210 19,601 609 986 944 42 Mar.^ 45,491 559 159 400 24,840 24,119 292 429 18,973 18,375 598 1,119 978 141 Apr.^ 47,663 548 148 400 27,252 26,531 292 429 18,589 17,986 603 1,274 1,133 141 May^ 51,809 548 148 400 32,091 31,347 292 452 17,853 17,283 570 1,317 1,176 141 June.. 51,377 548 148 400 30,640 26,809 379 3,452 18,890 18,316 574 1,299 1,157 142 July2' . 53,264 544 144 400 32,953 26,869 632 5,452 18,387 17,807 580 1,380 1,237 143 1 Represents liability on gold deposited by the International Monetary the securities is included under "Gold investment." The difference, which Fund to mitigate the impact on the U.S. gold stock of foreign purchases amounted to $19 million at the end of 1970, is included in this column. for the purpose of making gold subscriptions to the IMF under quota in- 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for creases. which breakdown by type of holder is not available. 2 U.S. Govt, obligations at cost value and funds awaiting investment 8 Data on the two lines shown for this date diflFer because of changes in obtained from proceeds of sales of gold by the IMF to the United States reporting coverage. Figures on the first line are comparable with those to acquire income-earning assets. Upon termination of investment, the shown for the preceding date; figures on the second line are comparable same quantity of gold can be reacquired by the IMF. with those shown for the following date. 3 Includes Bank for International Settlements and European Fund. 9 Includes $17 million increase in dollar value of foreign currency 4 Derived by applying reported transactions to benchmark data; liabilities resulting from revaluation of the German mark in Oct. 1969. breakdown of transactions by type of holder estimated for 1960-63. Includes securities issued by corporations and other agencies of the U.S. NOTE.—Based on Treasury Dept. data and on data reported to the Govt, that are guaranteed by the United States. Treasury Dept. by banks and brokers in the United States. Data correspond 5 Principally the International Bank for Reconstruction and Develop- to statistics following in this section, except for minor rounding differences. ment and the Inter-American Development Bank. Table excludes IMF "holdings of dollars," and holdings of U.S. Treasury 6 Includes difference between cost value and face value of securities in letters of credit and non-negotiable, non-interest-bearing special United IMF gold investment account. Liabilities data reported to the Treasury States notes held by other international and regional organizations. include the face value of these securities, but in this table the cost value of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 a 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 e s E W u e ro st p e e r n i Canada A re m L p e u a r b t i i l c n 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 ' 12,548 7,009 533 1,354 3,168 259 225 19683 12,481 7,001 532 1,354 3,122 248 224 1969 411,957 5,823 495 1,681 3,190 546 222 1970—July. . 16,565 9,533 527 2,102 3,331 691 381 Aug... 16,585 9,638 690 1,987 3,189 692 389 Sept... 17,741 11,135. 620 1,738 3,254 661 333 Oct.. . 18,106 11,564 575 1,767 3,336 526 338 Nov.. 19,941 13,231 637 1,646 3,639 449 339 /20,041 13,021 662 1,536 4,060 407 355 Dec. 3 \20,057 13,016 662 1,562 4,054 407 356 1971—Jan.''. 20,490 13,680 678 1,388 4,040 381 323 Feb.'-. 22,321 15,374 727 1,388 4,163 325 344 MAR.^ 24,840 17,151 801 1,236 4,998 242 412 Apr.''. 27,252 19,119 818 1,244 5,285 257 529 May. 32,091 22,720 865 1,212 6,396 286 612 June.. 30,640 20,676 843 1,262 6,895 271 693 Julyf. 32,953 22,447 921 1,286 7,253 285 761 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 8 to Table 6. securities with an original maturity of more than 1 year. 4 Includes $17 million increase in dollar value of foreign currency abilities resulting from revaluation of the German mark in Oct. 1969. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners To a n n d o r n e m gi o o n n e a t l a o ry r g i a n n t i e z r a n t a io t n io s n 5 a l Payable in dollars IMF Deposits End of period Total 1 Total Dem D an e d p os T it i s m e 2 b T i c r l c l U e e s a a r . t t S s e i a f u . s i n - r y d s O l t i h e a t o h r b m r e . t 3 r - P r f e o a c n y r i u e n c a r i i b - g e l n s e in m g v e o e n l s d t t - 4 Total Demand Time 2 b T i c r l c l U e e s a a r . t t S s e i a f u . s i n - r y d l s O t i h e a t o b r h m r . e 3 t r - 1968 31,717 31,081 14,387 5,484 6,797 4,413 636 800 683 68 113 394 108 19696 [ [4 4 0 0 , , 1 0 6 4 4 0 3 39 9 , , 7 6 3 1 5 1 2 20 0 , , 4 4 3 3 6 0 6 6, , 9 8 6 3 7 4 5 5 , , 0 0 1 1 5 5 7 7 , , 3 3 1 3 7 2 4 4 2 2 9 9 8 8 0 0 0 0 6 61 0 3 9 6 5 2 7 8 8 3 3 2 2 4 4 4 4 2 22 2 3 4 1970—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.. , 42,934 42,591 15,833 6,725 13,662 6,371 343 400 741 68 140 148 385 Dec. 6 [ 1 4 4 1 1 , , 6 7 9 7 2 7 4 4 1 1 , , 3 40 2 9 4 1 1 5 5 , , 7 7 4 8 5 5 5 5 , , 9 98 4 9 4 1 1 4 4 , , 1 1 2 2 3 3 5 5 , , 5 5 1 1 2 2 3 3 6 6 8 8 4 40 0 0 0 8 8 2 2 1 1 6 6 9 9 1 1 5 5 9 9 2 2 1 1 1 1 3 3 8 8 1 1 1971—Jan.''. 42,160 41,782 14,757 5,701 14,453 6,871 378 400 1,036 115 155 273 493 Feb. ^ 42,545 42,135 13,514 5,496 16,390 6,735 410 400 944 64 149 279 452 Mar.'- 43,872 43,220 11,845 5,169 18,703 7,503 652 400 978 73 166 242 496 Apr.''. 46,050 45,413 10,447 4,962 22,356 7,648 637 400 1,133 63 202 206 662 MAY^ 50,206 49,587 9,990 4,908 26,961 7,728 619 400 1,176 51 220 209 696 June.. 46,682 46,022 10,854 4,958 22,763 7,447 660 400 1,157 60 221 164 712 July p. 46,313 45,661 10,262 4,946 23,407 7,046 652 400 1,237 79 213 170 775 AUG.^' 52,453 51,803 9,347 5,020 30,196 7,240 650 400 1,333 61 193 269 810 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. • OCTOBER 1971 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE—Continued (Amounts outstanding; in millions of dollars) To residents of foreign countries To official institutions 7 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d p osi T ts i me 2 T b c r il c e U e ls a a r . t t s S e i a u f . s i n r - d y s O l t i h e a t o h r b m r e .3 t r - f r o e c n r i u e n c r i i g - e n s Total Dema D n e d p osi T ts i me 2 T b r i c l c e U l e s a a r . t s S t e a i u . f s n i r - d y s O t l h i e a t o r h b m r e . t 3 - r c P u f a r o r y r e i e a n n i b c g l i n e e s 196 8 30,234 14,320 5,371 5,602 4,304 636 11,318 2,149 1,899 5,486 1,321 463 1969 6 ' . 3 3 8 8 , , 6 7 3 5 1 1 2 20 0 . . 3 3 7 7 3 2 6 6 , , 7 8 5 8 1 4 3 3 , , 9 9 7 7 1 1 7 7 , , 1 0 0 9 9 4 4 4 2 2 9 9 1 1 1 1 , , 0 0 5 5 4 6 1 1 . . 9 9 1 1 8 9 2 2 , , 9 9 5 5 1 1 3 3 , , 8 8 4 4 4 4 2 2 . . 1 1 3 4 9 0 2 20 0 2 2 1970—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 17,387 1,444 3,178 10,930 1,687 148 Nov... 41,793 15,764 6,585 13,114 5.986 343 19,223 1,367 2,851 12,980 1,877 148 Dec. 6 / \4 4 0 0 , , 5 4 5 7 6 1 1 1 5 5 , , 6 7 7 1 6 6 5 5 , , 7 8 8 3 5 0 1 1 3 3 , , 5 51 1 1 1 5 5 , , 1 1 3 3 1 0 3 3 6 6 8 8 1 1 9 9 , ,3 3 3 0 3 6 1 1 , , 6 6 2 5 9 2 2 2 , , 5 5 6 7 8 1 1 1 3 3 , , 3 3 6 6 7 7 1 1 . .5 5 9 9 5 4 1 1 4 4 8 8 1971—Jan. 40,724 14,641 5,546 13,781 6,378 378 19,774 1,743 2,507 13,638 1,738 148 Feb.'-. 41,201 13,450 5,347 15,711 6,283 410 21,600 1,688 2,446 15,550 1,766 150 Mar. ^ 42,494 11,772 5,003 18,061 7,007 652 24,119 1,579 2,244 17,916 1,980 400 APR.^ 44,517 10,383 4,760 21,750 6.987 637 26,531 1,628 2,205 20,119 2,179 400 MAY^ 48,630 9,939 4,688 26,352 7,032 619 31,347 1,643 2,205 24,702 2,377 420 June.. 45,125 10,794 4,737 22,199 6,735 660 26,809 1,462 2,252 20,097 2,577 420 July2'., 44,676 10,183 4,733 22,837 6,271 652 26,869 1,469 2,308 19,605 3,067 420 Aug.f. 50,720 9,286 4,827 29,527 6,430 650 34,008 1,264 2,372 26,670 3,281 421 To banks9 To other foreigners To banks Payable in dollars and other EEnndd ooff ppeerriioodd TToottaall ppaayyaabbllee iinn TToottaall Dema D n e d p osi T ts i me 2 TT bb rr cc iill cc ee UU ee ll aa ss aa rr .. tt tt ss SS ee ii aa uu ff ss .. nn ii rr -- dd yy ss OO ll tt ii hh ee aa tt oo hh bb rrmm rr ee ..33 tt rr -- TToottaall Dema D n e d p osi T ts i me 2 TT bb cc rr iill cc ee UU ee llss aa aa rr .. tt tt ss SS ee ii aa uu ff .. ss ii nn rr -- dd yy ss OO ll tt ii hh ee aa tt oo hh bb rrmm rr ee ..33 tt rr -- ff rr oo ee cc rr nn uu ee cc rr ii ii -- gg ee nn ss 1968 18,916 14,299 10,374 1,273 30 2,621 4,444 1,797 2,199 86 362 173 11996699 66 / \ 2 2 7 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 98 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 0 1 9 0 1 1, , 9 8 3 1 4 1 1 1 0 0 7 7 3 3 1 1 2 2 2 2 2 2 6 6 1970—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 24,154 20,044 13,921 1,964 21 4,139 3,908 1,607 1,796 127 378 202 Nov 22,570 18,428 12,747 1,917 19 3,744 3,947 1,651 1,817 115 364 195 DDeecc.. 66 1 [2 2 1 1 , , 1 2 6 2 5 3 1 16 6 , , 9 9 5 1 7 0 1 12 2 , , 3 3 7 6 6 0 1 1 , , 3 3 3 6 5 5 1 1 4 4 3 3 , , 2 2 0 0 2 2 4 4 , ,0 0 3 4 5 6 1 1, , 6 6 8 8 8 7 1 1 , , 8 8 8 9 3 5 1 1 3 3 1 1 3 3 3 3 3 4 2 2 2 2 0 0 1971__jan.'' 20,950 16,673 11,210 1,196 13 4,255 4,047 1,689 1,843 130 385 230 Feb.'^ 19,601 15,229 10,036 1,027 12 4,155 4,112 1,727 1,875 148 362 260 Mar. 18,375 14,036 8,467 889 10 4,670 4,086 1,726 1,870 135 356 253 AApprr.. 17,986 13,611 6,950 663 1,516 4,482 4,137 1,805 1,892 116 324 238 MMaayy^^ 17,283 13,032 6,559 595 1,518 4,359 4,052 1,737 1,888 131 296 199 June 18,316 14,110 7,571 649 2,016 3,874 3,966 1,760 1,835 86 285 240 JulyP 17,807 13,681 7,018 600 3,136 2,927 3,894 1,696 1,825 96 277 232 Aug.^* 16,712 12,643 6,338 668 2,771 2,867 3,839 1,684 1,787 87 280 230 1 Data exclude "holdings of dollars" of the International Monetary with those shown for the preceding date; figures on the second line are Fund. comparable with those shown for the following date. 2 Excludes negotiable time certificates of deposit, which are included 7 Foreign central banks and foreign central govts, and their agencies, in "Other." and Bank for International Settlements and European Fund. 3 Principally bankers' acceptances, commercial paper, and negotiable 8 Increase in valuation resulting from revaluation of Swiss franc. time certificates of deposit. 9 Excludes central banks, which are included in "Official institutions." 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 constiment 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 Data on the two lines shown for this date differ because of changes in interest-bearing special U.S. notes held by the Inter-American Developreporting coverage. Figures on the first line are comparable in coverage ment Bank and the International Development Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 a 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. Dec.i Jan.'' Feb.'" Mar.'' Apr.*" May June July^' Aug.p Europe: Austria 314 185 185 204 198 194 191 185 203 274 244 Belgium-Luxembourg 530 596 597 761 767 770 780 903 761 781 914 Denmark 153 189 189 196 216 220 219 148 175 201 164 Finland 120 117 117 117 112 114 115 107 110 131 116 France 1,581 2,267 2,267 2,354 2,263 2,344 2,297 2,275 2,467 3,242 3,663 Germany 1,381 7,520 7,520 7,795 8,518 9,570 10,318 12,471 7,267 5,446 5,082 Greece 207 184 184 162 176 140 145 146 152 159 160 Italy 627 1,330 1,330 1,592 1,658 1,805 1,903 1,823 1,750 1,767 2,018 Netherlands 463 762 762 584 654 741 620 661 609 461 283 Norway 341 324 324 317 313 364 403 465 506 574 649 Portugal 309 274 274 299 307 319 298 280 270 271 295 Spain 202 198 198 205 203 184 201 232 200 208 204 Sweden 412 503 503 519 541 577 631 625 681 718 723 Switzerland 2,005 1,947 1,948 1,936 2,012 2,029 2,145 2,312 2,093 1,914 3,361 Turkey 28 46 46 53 51 32 25 43 21 27 26 United Kingdom 11,349 5,508 5,509 5,638 5,211 4,779 5,087 5,160 6,125 6,205 6,128 Yugoslavia 37 37 37 36 46 41 33 38 33 39 31 Other Western Europe 2 1,553 594 594 460 377 368 339 807 1,012 1,427 1,516 U.S.S.R 11 15 15 11 9 12 22 9 9 10 10 Other Eastern Europe 50 54 54 63 56 53 45 50 66 61 45 Total 21,674 22,650 22,653 23,300 23,689 24,656 25,817 28,741 24,511 23,917 25,633 Canada 4,012 4,018 4,056 3,647 3,626 3,402 3,256 3,136 3,292 3,250 3,379 Latin America: Argentina 416 539 539 508 517 522 507 505 447 501 501 Brazil 425 305 346 372 392 330 334 334 360 428 418 Chile 400 265 266 256 253 258 260 256 257 235 252 Colombia 261 247 247 231 215 186 191 169 183 178 168 Cuba 7 7 7 7 8 8 7 7 6 7 7 Mexico 849 820 821 829 830 825 863 799 790 705 728 Panama 140 158 158 164 178 174 186 173 166 147 149 Peru 240 225 225 186 178 168 181 190 200 162 146 Uruguay 111 117 118 125 125 119 121 112 116 116 127 Venezuela 691 735 735 672 693 642 684 729 786 782 787 Other Latin American republics.. 576 620 620 617 614 609 601 582 582 624 623 Bahamas and Bermuda 1,405 745 745 779 666 622 980 940 960 1,069 887 Netherlands Antilles and Surinam 80 98 98 92 95 101 105 105 101 97 101 Other Latin America 34 39 39 37 38 49 48 56 46 46 50 Total 5,636 4,918 4,963 4,875 4,801 4,613 5,068 4,959 5,001 5,095 4,944 Asia: China Mainland 36 33 33 36 36 34 34 33 35 35 34 Hong Kong 213 258 258 305 322 298 281 313 306 301 322 India 260 302 302 236 229 188 211 245 255 221 184 Indonesia 86 73 73 60 65 52 73 60 71 68 59 Israel 146 135 135 121 128 122 155 125 132 129 115 Japan 3,809 5,150 5,150 5,169 5,452 6,325 6,815 8,192 8,670 8,691 13,130 Korea 236 199 199 193 178 191 184 193 204 187 185 Philippines 201 294 294 290 305 340 347 349 330 333 332 Taiwan 196 275 275 292 278 288 296 293 291 300 281 Thailand 628 508 508 489 469 443 381 306 281 237 178 Other 606 708 708 722 735 674 601 585 558 622 541 Total 6,417 7,935 7,935 7,912 8,197 8,954 9,375 10,694 11,132 11,123 15,361 Africa: Congo (Kinshasa) 87 14 14 16 13 17 19 15 16 19 44 Morocco 21 11 11 7 7 8 9 9 9 7 10 South Africa 66 83 83 71 71 56 74 64 61 71 74 U.A.R. (Egypt) 23 17 17 16 18 15 15 14 15 19 13 Other 505 395 395 469 334 278 268 291 285 299 303 Total 701 521 521 580 443 373 384 392 385 415 Other countries: Australia 282 389 389 376 398 455 576 668 757 830 914 All other 29 39 39 34 46 43 41 40 46 47 46 Total 311 428 428 410 444 497 617 708 803 877 960 Total foreign countries 38,751 40,471 40,556 40,724 41,201 42,494 44,517 48,630 45,125 44,676 50,720 International and regional: International 3 1,261 975 975 1,175 1,086 1,100 1,219 1,250 1,214 1,231 1,333 Latin American regional 100 131 131 167 161 171 176 188 203 237 262 Other regional^ 52 115 115 94 98 107 138 138 140 169 138 Total 1,413 1,221 1,221 1,436 1,344 1,378 1,533 1,576 1,557 1,637 1,733 Grand total 40,164 41,692 41,777 42,160 42,545 43,872 46,050 50,206 46,682 46,313 52,453 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. • OCTOBER 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 ^ 1969 1970 1971 1969 1970 1971 Area or country AArreeaa oorr ccoouunnttrryy Apr. Dec, Apr. Dec. Apr. Apr. Dec. Apr. Dec. Apr. Other Western Europe: Other Asia—Cont.: Cyprus 2 11 15 10 7 4 17 30 14 3 Iceland 4 9 10 10 10 40 46 66 54 36 Ireland, Rep. of 20 38 32 41 29 4 3 4 5 2 82 83 82 54 60 Other Latin American republics: 41 30 48 22 29 Bolivia 65 68 76 69 59 24 35 34 38 27 Costa Rica 61 52 43 41 43 Ryukyu Islands (incl. Okinawa). 20 25 26 18 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 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 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 8 10 7 8 6 Trinidad & Tobago 8 8 11 10 14 34 43 47 38 13 28 23 41 22 21 68 288 430 195 91 Oth B e 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 Southern Rhodesia 1 2 0 1 2 1 1 2 1 17 1 (6 2 ) 3 3 1 1 1 Other Asia: 23 10 18 9 10 Afjghanistan 8 16 15 26 15 2 6 7 7 6 Burma 5 2 5 4 3 9 5 7 8 5 Cambodia 2 1 1 2 2 19 20 38 10 Ceylon 5 3 4 4 4 Iran 44 35 41 32 50 All other: Iraq 77 26 6 11 (6) New Zealand 20 16 18 25 22 1 Data in the two columns shown for this date differ because of changes 4 Asian, African, and European regional organizations, except BIS and in reporting coverage. Figures in the first column are comparable in cover- European Fund, which are included in "Europe." age with those shown for the preceding date; figures in the second column 5 Represent a partial breakdown of the amounts shown in the "other" are comparable with those shown for the following date. categories (except "Other Eastern Europe"). 2 Includes Bank for International Settlements and European Fund. 6 Not available. 3 Data exclude "holdings of dollars" of the International Monetary Fund but include IMF gold investment. 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 TToo iinnttll.. EEnndd ooff ppeerriioodd TToottaall rreegg aa ii nn oo dd nn aall Total O in t f i s f o i t n c it i s u a - l Banks 1 fo O r e t e h r i s g e n r - A t r i g n e a n - A O m La t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ie s 1967 2,560 698 1,863 1,807 15 40 251 234 126 443 218 502 89 1968 3,166 777 2,389 2,341 8 40 284 257 241 658 201 651 97 1969 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 1970—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.'^ 1,698 789 909 695 160 54 13 138 6 385 8 122 236 1971—Jan. 1,566 714 852 635 157 60 13 144 6 340 8 108 233 Feb.^ 1,463 688 775 571 154 51 13 109 6 316 1 100 230 Mar'- 1,344 631 713 492 161 60 13 91 6 261 1 95 246 Apr.'- 1,190 586 605 406 142 57 13 92 7 186 1 84 220 May»- 1,149 562 587 391 139 57 13 94 8 182 1 81 208 June 1,144 580 564 332 184 49 13 87 8 129 1 79 247 JulyJ' 1,024 516 507 273 184 51 13 88 8 83 1 80 234 Aug.P 897 488 409 171 185 53 13 66 8 12 1 91 218 1 Excludes central banks, which are included with "Official institutions.' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 a 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 Dec. Sept. Oct. Nov. Dec.i Dec. 2 Jan. Feb. Mar. Apr. May June July?' Aug.?' Europe: Belgium-Luxembourg * 1 J 1 5 7 6 6 6 6 6 6 6 6 Norway. 7 7 7 7 7 * • * * • * * * • Switzerland 42 49 49 49 49 34 33 34 34 31 30 29 29 29 United Kingdom 407 427 428 451 503 472 520 518 510 519 485 490 496 460 Other Western Europe 37 34 33 33 30 27 20 24 25 25 25 25 25 25 Eastern Europe 7 7 7 6 6 6 6 6 6 6 6 6 6 6 Total. 500 525 524 547 600 547 586 589 582 587 552 557 562 525 Canada 269 282 192 191 193 178 178 177 174 174 175 175 175 176 Latin America: Latin American republics.. 2 2 2 2 2 2 2 2 1 1 1 1 J 1 Other Latin America 13 15 15 15 15 6 6 6 6 6 6 6 6 6 Total. 15 17 18 18 18 8 8 8 7 7 7 7 7 7 Asia: India 20 20 20 20 20 20 20 20 20 20 Japan 61 61 61 61 61 56 56 55 55 55 55 142 395 633 Other Asia. 18 19 19 18 18 10 10 10 10 10 10 10 10 10 Total 79 80 80 80 99 85 85 85 85 85 85 172 425 663 Africa 7 42 42 42 42 43 43 43 43 43 43 43 43 43 All other • • * • • • • • * • • * « * Total foreign countries. 871 947 857 879 953 860 899 901 890 895 862 953 1,212 1,413 International and regional: International 32 22 22 22 • 2 17 115 115 115 115 115 126 Latin American regional.. 18 23 23 24 24 24 25 25 26 26 27 27 28 28 Total 50 45 46 46 24 26 25 42 141 141 142 142 143 154 Grand total. 921 992 903 925 977 886 923 943 1,031 1,036 1,003 1,095 1,355 1,567 1 Based on Nov. 30, 1968, benchmark survey. ketable U.S. Govt, securities with an original maturity of more than 1 2 Based on Jan. 31, 1971, benchmark survey. year, and are based on benchmark surveys of holdings and regular monthly reports of securities transactions (see Table 16). NOTE.—Data represent estimated official and private holdings of mar- 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total g B iu e m l- C ad a a n - 1 m De a n rk - m G a e n r- y Italy 2 Korea S d w e e n - T w a a i n - T la h n a d i- Total A tr u i s a - m G a e n r y - 3 Italy e S r w la it n z d - 196 8 3,330 1,692 32 1,334 20 146 15 25 20 100 1,638 50 1,051 226 311 1969 43,181 1,431 32 1,129 135 15 20 100 4 1,750 1,084 125 541 1970—Sept. 3,508 2,425 32 2,229 29 15 20 100 1,083 542 541 Oct.. 3,567 2,484 32 2,289 28 15 20 100 1,083 542 541 Nov., 3,564 2,481 32 2,289 25 15 20 100 1,083 542 541 Dec. 3,563 2,480 32 2,289 25 15 20 100 1,083 542 541 1971—Jan.. 3,563 2,480 32 2,289 25 15 20 100 1,083 542 541 Feb.. 3,563 2,480 32 2,289 25 15 20 100 1,083 542 541 Mar. 3,563 2,480 32 2,289 25 15 20 100 1,083 542 541 Apr., 3,563 2,480 32 2,289 25 15 20 100 1,083 542 541 May. '3,592 2,480 32 2,289 25 15 20 100 51,111 542 6 569 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 Aug. 8,924 7,479 32 2,289 5,000 23 15 20 100 1,444 542 902 Sept. 9,193 7,479 32 2,289 5,000 23 15 20 100 1,714 542 1,172 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 extary 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. • OCTOBER 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 AArreeaa aanndd ccoouunnttrryy Dec. Nov. Dec.r Jan.*- Feb.^ Mar.'- Apr.'- May June JulyP Aug.^' Europe: 7 8 6 4 4 5 17 6 5 5 8 Belgium-Luxembourg 56 71 50 69 68 68 57 73 58 48 95 Denmark 40 37 40 46 53 58 54 54 51 46 47 Finland 68 55 66 103 110 123 128 137 133 129 117 France 107 105 113 95 111 98 102 123 106 124 155 Germany 205 184 186 142 175 190 214 357 250 235 256 Greece 22 25 26 21 22 21 22 24 22 21 22 Italy 120 92 101 92 98 102 108 131 120 133 140 Netherlands 51 57 61 74 68 70 76 85 87 84 93 Norway 34 48 54 61 65 62 54 64 67 61 70 Portugal 8 13 11 12 14 15 15 20 18 13 11 Spain 70 54 52 49 56 59 65 70 61 64 66 Sweden 67 110 97 102 100 104 124 129 135 138 117 Switzerland 99 98 100 122 114 174 137 163 148 162 253 Turkey 19 4 9 3 4 5 8 30 14 11 26 United Kingdom 408 430 381 410 513 456 580 808 536 480 785 Yugoslavia 28 41 35 35 31 33 33 36 37 38 37 Other Western Europe 9 12 13 10 9 12 15 17 18 19 U.S.S.R 2 1 3 2 2 3 3 2 2 2 2 Other Eastern Europe 34 41 45 36 41 47 51 50 44 48 34 Total 1,454 1,487 1,451 1,489 1,661 1,701 1,859 2,377 1,913 1,860 2,353 Canada 826 917 1,084 914 942 1,018 972 1,021 1,003 980 1,057 Latin America: Argentina 309 306 326 331 341 349 321 322 316 334 329 Brazil 317 322 325 310 322 368 399 401 429 422 442 Chile 188 189 200 187 184 180 165 158 155 157 152 Colombia 225 272 284 288 296 300 303 294 299 315 335 Cuba 14 13 13 13 13 13 13 13 13 13 13 Mexico 803 934 909 917 955 912 898 886 879 943 977 Panama 68 84 95 82 105 100 105 104 109 99 113 Peru 161 141 147 143 135 131 150 153 156 173 169 Uruguay 48 55 63 56 51 49 53 52 43 44 41 Venezuela 240 284 281 276 275 243 242 230 228 237 249 Other Latin American republics 295 321 342 335 336 327 330 311 314 309 308 Bahamas and Bermuda 93 105 179 178 157 200 190 239 212 263 249 Netherlands Antilles and Surinam 14 14 19 19 14 15 21 20 19 18 15 Other Latin America 27 22 22 22 21 22 22 22 27 31 36 Total 2,802 3,062 3,203 3,157 3,204 3,209 3,211 3,205 3,198 3,359 3,427 Asia: China Mainland 1 1 2 1 1 2 1 1 1 1 1 Hong Kong 36 36 39 40 41 49 60 56 60 69 71 India 10 12 13 16 13 15 21 20 19 18 18 Indonesia 30 54 56 49 49 66 48 34 30 63 60 Israel 108 110 120 99 130 97 110 112 117 123 116 Japan 3,432 3,538 3,890 3,675 3,480 3,482 3,356 3,606 3,501 3,220 4,079 Korea 158 197 196 196 194 221 243 231 259 252 252 Philippines 215 129 137 135 137 124 128 115 125 126 119 Taiwan 49 82 95 101 113 119 117 127 130 127 123 Thailand 101 97 109 106 109 109 118 114 116 123 127 Other 212 164 157 167 182 183 187 211 200 203 239 Total 4,352 4,420 4,815 4,585 4,448 4,466 4,389 4,627 4,557 4,325 5,205 Africa: Congo (Kinshasa) 6 5 4 7 4 6 5 6 6 18 8 Morocco 3 4 6 6 6 6 5 6 5 6 8 South Africa 55 76 77 83 84 86 93 103 97 128 132 U.A.R. (Egypt) 11 10 13 16 14 14 17 16 14 12 11 Other 86 72 79 78 85 101 103 104 110 108 124 Total 162 166 180 190 194 213 223 235 232 272 284 Other countries: Australia 53 59 64 70 105 73 73 81 94 105 118 All other 16 16 16 17 19 18 18 17 20 21 22 Total 69 75 80 87 124 91 91 98 114 126 140 Total foreign countries 9,664 10,127 10,812 10,422 10,573 10,697 10,745 11,564 11,017 10,922 12,465 International and regional 2 2 3 2 2 2 2 2 3 3 2 Grand total 9,667 10,129 10,815 10,424 10,575 10,699 10,747 11,565 11,020 10,924 12,467 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
OCTOBER 1971 a 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 EEnndd ooff ppeerriioodd TToottaall TToottaall Total O in t f i s f o L t i n c i o t s i u a a - l n s B to a — nk s 1 Others CC ss tt oo oo tt ii ii aa oo nn uu llll nn nn gg ee tt dd -- ss cc -- -- ff AA ee oo oo aa mm ii cc rr ff gg nn cc aa nn aa ff cc ee oo dd cc ee ee pp ee rr rr cc ss -- ss tt tt -- .. OOtthheerr TToottaall ww DD ee ii ee ii tt gg hh pp nn oo ee ff ss rr oo ii ss tt rr ss -- gg cc FF aa nn oo pp uu cc oo nn aa oo aa vv rr rr dd ii nn pp tt ee mm tt ,, ii cc ii ee ee ff ss gg ll ee rr ii ,, ss ee -- nn ,, -- OOtthheerr 1968 8,711 8,261 3,165 247 1,697 1,221 1,733 2,854 509 450 336 40 73 19692 J 9,578 9,063 3,281 262 1,946 1,073 1,954 3,169 658 518 352 84 79 19,667 9,151 3,278 262 1,943 1,073 2,015 3,202 656 516 352 89 74 1970—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.^ 10,815 10,165 3,049 119 1,720 1,210 2,414 3,968 733 651 393 92 166 1971—Jan.'- 10,424 9,917 2,864 110 1,574 1,180 2,396 3,950 708 506 308 79 120 Feb. 10,575 10,039 2,952 88 1,592 1,272 2,389 3,973 726 535 334 111 90 Mar. 10,699 10,136 3,005 100 1,597 1,309 2,376 4,033 721 564 365 102 96 Apr. ^ 10,747 10,213 3,113 107 1,753 1,253 2,320 4,097 684 534 339 92 103 May 11,565 10,930 3,377 150 1,926 1,301 2,349 4,135 1,069 636 449 78 109 June 11,020 10,455 3,406 147 1,968 1,291 2,378 3,959 712 565 374 102 89 July^' 10,924 10,385 3,570 200 2,052 1,318 2,364 3,637 815 539 382 68 89 Augp 12,467 11,833 4,364 197 2,744 1,424 2,355 4,121 993 634 498 46 90 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 CUIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars EEEEnnnndddd ooooffff PPPaaayyyaaabbbllleee ppppeeeerrrriiiioooodddd TTTToooottttaaaallll Loans to— OO lloo tt nn hh gg ee -- rr ccc fffooo uuu rrr rrr iii eee rrr nnn eee iii ggg nnn nnn --- UUU KKK ddd nnn iii ooo nnn iii mmm ttt ggg eee --- ddd EEE OOO uuu ttt rrr hhh ooo eee ppp rrr eee CCCaaannnaaadddaaa AAAmmm LLLaaa eee ttt rrr iii iii nnn ccc aaa JJJaaapppaaannn OOO AAA ttt sss hhh iii eee aaa rrr cccooo ooo uuu AAA ttt nnn hhh lll ttt eee lll rrr rrr iiieee sss Official Other tteerrmm ccciiieeesss Total institu- Banksi foreign- ccllaaiimmss 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—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.^.. 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971—Jan... 2,962 2,610 485 213 1,913 327 24 70 412 278 1,281 117 523 280 Feb.^.. 2,957 2,643 484 213 1,946 289 26 77 420 266 1,257 121 521 295 Mar. .. 3,045 2,738 501 226 2,012 277 30 111 424 268 1,271 125 548 298 Apr.^.. 3,084 2,779 504 227 2,048 271 33 117 439 275 1,273 120 554 305 May^.. 3,248 2,936 523 251 2,163 279 32 107 498 277 1,264 208 548 345 June.... 3,219 2,916 475 242 2,199 277 26 112 519 266 1,229 225 514 355 JulyP. .. 3,279 2,986 489 253 2,244 273 20 118 530 266 1,248 219 515 371 Aug.P .. 3,380 3,085 507 265 2,313 267 28 119 548 259 1,323 221 539 370 1 Excludes central banks, which are included with "Official institutions.' Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 86 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 1971 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes i securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e - s Sales c N ha e s s a t e le p s s u o r- r ch P a u s r e - s Sales c N ha e s s a t e le p s s u o r- r ch P a u s r e - s Sales c N h e a s t s a e le p s s u o r- r regional Total Official Other 196 9 -45 11 -56 -115 59 15,476 12,795 2,681 1,552 2,581 -1,029 1,519 2,037 -517 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 997 37 197 0 681 128 553 575 -22 9,887 9,316 571 1,051 1,850 -799 779 1,000 -221 1971—Jan.-Aug.P 13 21 21 656 514 142 143 380 -237 60 45 15 1970—Au g 5 5 5 1,034 703 331 110 93 17 76 90 -14 Sept -89 -90 -91* 1 1,187 938 249 109 257 -148 71 120 -50 Oct 23 22 22 754 609 145 97 87 10 65 76 -11 Nov 52 -22 74 17 57 1,321 1,030 291 140 277 -137 83 87 -4 Dec 1971—Ja n 37 38 46 1,242 1,022 220 116 419 -302 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 5 5 4 1,383 1,408 -25 174 234 -60 117 179 -63 May! -33 -33 -33 1,163 1,126 37 118 218 -100 94 120 -26 June 92 91 87 4 1,004 1,019 -15 121 239 -118 98 130 -32 JULYP 260 351 253 6 1,038 1,002 36 109 137 -28 102 144 -42 AUG.P 212 202 238 -36 1,130 1,013 117 110 306 -196 124 102 22 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corporaofficial 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 l e an th d e s r - Sw la it n z d e r- 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 Am La e t r in ic a Asia Africa co O u t n h t e ri r e s r I e n g t i l. o n & a l 1969 1,487 150 216 189 490 -245 295 1,094 125 136 90 7 36 1970 626 58 195 128 110 -33 24 482 -9 47 85 -1 1 22 1971—Jan.-Aug.p 146 -20 61 111 23 -98 3 80 -70 40 55 • -I 42 1970—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 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 * _ J 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 -I 8 -10 8 -4 -18 -8 -24 -7 14 11 * _ 1 6 May 10 9 « 13 10 -6 -3 24 -17 -4 1 — 1 « 7 June -11 3 3 12 9 -19 -24 -17 -11 -4 7 * * 14 Julyp -4 12 -6 15 -10 6 -13 4 -24 2 15 * * -2 Aug.2' 79 10 7 38 24 -33 -7 38 11 13 16 1 * * Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 a 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 l e an th d e s r - Sw la it n z d e r- 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 Am La e t r i i n c a Asia Africa co O u t n h t e ri r e s I r n e t g l. i o a n n a d l 1969 1,195 97 200 14 169 251 83 815 32 14 -11 10 336 1970 956 35 48 37 134 118 91 464 128 25 28 1 -12 324 1971—Jan.-Aug.p 425 11 31 2 66 124 40 275 35 17 -5 « -16 120 1970—Aug 38 -1 -3 * -1 -1 1 -4 21 2 * * -2 21 Sept 106 1 25 * 3 2 31 16 -6 1 • * 64 Oct 91 -I » 1 8 -8 43 43 14 6 * -2 29 Nov 47 2 1 * 3 1 4 13 17 2 3 * * 13 Dec 75 2 7 -3 9 28 18 61 i I 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 May 27 -1 27 * -5 19 -6 33 * 3 -1 • -2 -6 June..,... -4 -1 -1 * -2 -4 * -8 11 2 -3 * -2 -3 July!' 40 -2 — 1 1 3 20 1 22 -10 3 * * * 24 Aug.f 37 -3 -1 -1 * 27 -3 19 • 1 1 * * 17 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 n r n e t d - l. c e f o o i u g r n n - - r E o u p - e C a a d n a - A L i m a c t a e in r - Asia r A ic f a - c O t o r t i h u e e n s r - E pp n ee d rrii oo o dd f fo b ( r a d e l u i a g e n n c e t e o r s s ) f ( o d b r a u e l e i a g n n f c r e e o r s m s ) gional tries 311 298 1969 -1,547 66 -1,613 74 -1,128 -98 -474 -6 20 636 508 1970 -914 -254 -660 50 -584 -11 -129 -6 20 553 393 1971—Jan.-Aug.f... -1,020 -363 -657 -47 -268 * -373 5 25 566 397 467 297 1970—Aug -222 -158 -64 4 -127 56 2 1 434 278 Sept 3 16 -13 5 22 -30 -12 2 Oct -198 -91 -107 -33 -51 3 -28 2 368 220 Nov -1 3 -4 -10 15 -2 -9 — 1 1 334 182 Dec -141 4 -145 -22 -90 -5 -31 -1 4 291 203 Dec 349 279 1971—Jan -307 -197 -111 2 -85 -1 -29 2 Feb -21 -4 -17 -21 27 4 -29 1 511 314 Mar -50 11 -61 6 -34 11 -44 — 1 1 419 300 Apr -122 -46 -77 -34 29 5 -79 1 May -126 4 -130 -4 -62 -13 -52 2 June -150 13 -163 -3 -111 5 -72 14 NOTE.—Data represent the money credit balances and Julyf -70 7 -76 -16 -8 -2 -53 2 money debit balances appearing on the books of reporting Aug.f -174 -152 -22 23 -23 -10 -14 1 brokers and dealers in the United States, in accounts of foreigners with them, and in their accounts carried by foreigners. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 88 INTL. CAPITAL TRANSACTIONS OF THE U.S. • OCTOBER 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 GOVERNMENT SECURITIES BRANCHES OF U.S. BANKS (Amounts outstanding; in millions of dollars) (End of month; in billions of dollars) Liabili- Liabili- Liab. Liabili- Liab. 1971 Wednesday ties! Wednesday ties! plus Wednesday ties! plus Maturity of sec. 2 sec. 2 liability May June July 1966 1970 1971—Cont, J M S D u e e a n p c r e t . . , 3 2 2 2 0 8 9 8 . . . . . . . . . . . . . . . . 4 3 1 1 , , , , 0 9 4 8 3 5 7 7 6 1 9 2 J A F M M a e p a a n b r y r . . . . 2 2 2 2 2 5 7 9 5 8 . . . . . 1 1 1 1 1 3 1 3 1 2 , , , , , 6 8 0 9 3 0 8 8 4 4 5 5 6 4 6 Apr. 2 2 1 7 8 4 1 . . . . . . . . . . . . 2 2 2 3, , , , 2 1 2 3 5 5 4 1 9 8 4 0 - 4 5 5 5 , , , , 3 7 1 2 1 5 6 5 8 9 6 2 C O a t m i h l n l e o r n f l o t ia h ll b s o i w lit i a i n e f g s te , r m ca a l r t e e u n p r d i o n a r g t r 1 1 . . 8 4 8 7 1 1 . . 8 6 5 7 1 1 . . 5 6 1 0 Mar. 2 1 9 9 . 6 . 7 . . 3,412 J J A S O u u e u c n l p g t y e . t . . 2 2 2 2 3 6 9 8 4 0 . . . . . 1 1 1 9 9 2 0 0 , , , , , 6 2 4 6 1 6 9 6 2 7 3 7 9 9 2 May 2 1 1 6 5 9 2 . . . . . . . . . . . . 2 1 1 1 , , , , 0 5 6 5 0 9 2 7 4 8 8 9 4 5 4 4 , , , , 6 5 0 6 0 8 1 3 6 7 2 6 da 4 te th : 9 5 3 1 . . . . 3 2 0 6 0 3 7 7 1 4 3 1 1 . . . . 3 4 7 1 1 6 8 0 4 2 8 5 . . . . 1 4 4 1 5 3 7 0 June 28.... 3,166 Nov. 25. 8,435 June 2. .. 1,877 4,885 1.57 1.79 2.22 Sept. 27.... 4,059 Dec. 30. 7,676 9. .. 1,938 4,946 1.67 1.92 1.89 Dec. 27.... 4,241 16... 2,323 5,331 7th .43 .34 .27 1971 23. .. 2,323 5,331 .30 .25 .31 30... 1,499 4,507 9th .24 .30 .40 1968 Jan. 6. 7777,,,,444422224444 .29 .37 .28 13. 7777,,,,888866663333 July 7.., 2,183 5,191 11th .37 .25 .23 Mar. 27 4,920 2 2 0 7 . . 7777 6666 ,,,, ,,,, 8888 5555 2222 3333 3333 6666 7,536 2 1 1 4. . .. . , 1 1 , , 7 8 2 7 9 9 4 4 , , 7 9 7 2 6 6 Maturities of more than 1 .24 .22 .37 J S u e n p e t. 2 2 5 6 6 7 , , 2 1 0 0 2 4 Feb. 3. 6,432 7,432 28.., 1,505 4,655 .72 .70 .76 Dec. 31 (1/1/69) 6,039 10. 6,233 7,233 Aug. 4.., 1,912 5,062 17. 5,872 6,872 11. 1,104 4,290 Total 28.44 30.33 29.99 24. 5,666 6,666 18... 1,382 4,568 1969 25. 1,409 4,079 Mar. 3. 5,016 6,516 Sept. 1.. 1,236 3,406 NOTE.—Includes interest-bearing U.S. dollar Mar. 26.... 9,621 10. 4,806 6,306 8.. 1,242 3,412 deposits and direct borrowings of all branches in June 25.... 13,269 17. 4,180 5,680 15.. 1,704 3,358 the Bahamas and of all other foreign branches Sept. 24.... 14,349 24. 4,338 5,838 22.., 2,150 3,804 for which such deposits and direct borrowings Dec. 31.... 12,805 31. 2,858 4,358 29.. 2,468 3,571 amount to $50 million or more. Details may not add to totals due to rounding. ! Represents gross liabilities of reporting banks to their branches in foreign countries. 2 Includes U.S. Treasury Certificates Eurodollar Series and special Export-Import Bank securities held by foreign branches. Beginning July 28, 1971, 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 Payable in dollars foreign currencies Assets in custody EEnndd ooff End of United ppeerriioodd DDeeppoossiittss period Total Short- Short- King- Canada U se .S c . u r G it o ie v s t ! , Ear g m o a ld rk ed Deposits in te ve rm st - Deposits in te ve rm st - dom ments 1 ments ! 1968 216 9,120 13,066 1969 134 7,030 12,311 1968 1,638 1,219 87 272 60 979 280 /1,319 952 116 174 76 610 469 1970—Sept... 136 13,983 12,611 11,454 1,025 161 183 86 663 519 Oct.... 142 14,458 12,617 Nov... 136 16,196 12,644 1970—July 1,481 1,067 181 159 74 809 309 Dec... 148 16,226 12,926 Aug 1,335 926 164 151 94 708 297 Sept 1,434 948 183 177 126 713 382 1971—Jan.... 129 16,206 12,958 Oct . . 1,477 964 177 177 159 686 440 Feb... 147 18,033 12,981 Nov 1,485 973 171 175 166 664 472 Mar... 201 20,534 13,057 Dec 1,095 667 133 173 121 372 417 Apr... 162 22,879 13,095 May.. 208 28,126 13,447 1971—Jan 1,252 835 124 177 116 520 363 June.. 199 26,544 13,509 Feb 1,312 827 152 190 144 548 401 July... 162 28,574 13,559 Mar.. . 1,450 983 147 175 145 706 377 Aug... 122 35,914 13,821 Apr 1,468 967 163 200 138 687 390 Sept... 166 36,921 13,819 May 1,532 930 147 293 161 622 424 June 1,462 931 170 240 122 634 367 July 1,474 955 180 238 101 579 393 ! Marketable U.S. Treasury bills, certificates of indebtedness, notes, and bonds and nonmarketable U.S. Treasury securities payable in dollars and in foreign 1 Negotiable and other readily transferable foreign obligations payable on demand currencies. or having a contractual maturity of not more than 1 year from the date on which the obligation was incurred by the foreigner. NOTE.—Excludes deposits and U.S. Govt, securities 2 Data on the two lines for this date diflfer because of changes in reporting coverage. held for international and regional organizations. Ear- Figures on the first line are comparable in coverage with those shown for the preceding marked gold is gold held for foreign and international date; figures on the second line are comparable with those shown for the following date. accounts and is not included in the gold stock of the 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
OCTOBER 1971 a INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 25. SHORT-TERM LIABILITIES TO AND CUIMS 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. Mar. June Sept. Dec. Mar. Europe: Austria 3 4 6 8 11 7 8 9 10 10 Belgium-Luxembourg 75 74 66 46 47 60 58 54 47 49 Denmark 3 3 3 2 9 17 17 16 17 16 Finland 1 1 1 2 2 8 8 13 11 8 France 126 156 141 126 112 155 176 154 150 159 Germany, Fed, Rep. of 193 164 166 139 122 172 174 1 192 209 191 Greece 3 3 3 4 4 19 27 28 28 34 Italy 82 84 69 77 71 169 173 161 163 175 Netherlands 110 116 124 128 115 72 72 62 62 65 Norway 5 5 6 5 4 12 13 13 16 15 Portugal 6 5 10 13 14 14 18 14 15 13 Spain 55 47 48 24 27 78 72 73 81 93 Sweden 29 31 35 34 28 27 27 25 40 53 Switzerland 159 159 185 159 122 47 37 45 47 38 Turkey 2 2 3 4 3 12 11 13 8 17 United Kingdom 570 648 644 792 704 1,198 1,137 1,055 698 1,020 Yugoslavia 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 Total 1,445 1,526 1,538 1,578 1,403 2,111 2,076 1,977 1,652 1,997 Canada 206 205 215 215 201 643 691 703 751 715 i Latin America: Argentina 10 15 10 ! 11 14 55 62 61 61 65 Brazil 13 14 17 19 15 97 100 107 120 105 Chile 8 9 11 i 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 20 148 140 149 156 143 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 68 63 70 68 70 Other L.A. republics 27 28 35 37 29 92 102 97 100 96 Bahamas and Bermuda 46 58 89 144 158 84 160 153 160 210 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 179 229 255 310 296 717 790 801 848 858 1 Asia: Hong Kong 7 7 8 9 8 14 17 i 19 17 19 India 27 37 41 38 25 36 41 42 34 39 Indonesia 5 7 7 9 5 11 17 1 14 21 20 Israel 15 17 21 24 28 34 23 21 23 24 Japan 132 113 135 144 165 297 311 314 323 348 Korea 1 2 1 I 11 27 50 29 42 48 Philippines 6 7 7 7 7 32 33 32 30 31 Taiwan 4 4 8 9 10 23 29 27 33 32 Thailand 3 3 4 4 4 15 15 13 11 12 Other Asia 26 28 47 50 59 113 125 145 145 155 Total 227 227 281 296 322 602 662 657 678 728 Africa: Congo (Kinshasa) 3 14 15 2 2 4 5 4 3 5 South Africa 19 19 24 34 31 28 35 29 30 32 U.A.R. (Egypt) 1 2 2 1 2 9 10 11 9 10 Other Africa 33 37 51 41 19 47 49 48 50 53 Total 56 72 90 78 54 87 99 92 92 100 Other countries: Australia 64 69 74 75 81 64 84 70 80 86 All other 6 6 5 7 8 13 14 15 15 13 Total 70 74 79 82 89 77 98 84 94 99 International and regional.... • * * « * 1 2 1 1 3 Grand total 2,184 2,334 2,459 2,560 2,365 4,238 4,417 4,316 4,117 4,499 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. • OCTOBER 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 PPaayyaabbllee Pay in a ble PPaayyaabbllee Total ddoo ii ll nn llaa rrss cu fo rr r e e n ig ci n e s Total ddoo ii ll nn llaa rrss D ba e n p k o s s i a ts b r w o i a th d 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.i. 1 1,386 1,039 347 3,011 2,599 203 209 1968—Mar.. 1,358 991 367 3,369 2,936 .211 222 June. 1,473 1,056 417 3,855 3,415 210 229 Sept.. 1,678 1,271 407 3,907 3,292 422 193 Dec.. 1,608 1,225 382 3,783 3,173 368 241 1969—Mar.. , 1,576 1,185 391 4,014 3,329 358 327 June.. 1,613 1,263 350 4,023 3,316 429 278 Sept.. . 1,797 1,450 346 3,874 3,222 386 267 Dec... . ( 1,786 1,399 387 3,710 3,124 221 365 Dec.i . . \ 2,081 1,648 433 4,124 3,495 244 385 1970—Mar.. 2,184 1,707 478 4,238 3,699 219 320 June. 2,334 1,821 513 4,417 3,825 234 358 Sept.. 2,459 1,933 526 4,316 3,710 301 306 Dec.. 2,560 2,127 432 4,117 3,534 234 349 1971—Mar.. 2,365 1,946 419 4,499 3,890 232 377 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 EEEnnnddd ooofff pppeeerrriiioooddd llliiiaaa TTT bbb ooo iiilll ttt iii aaa tttiii lll eee sss Country or area TToottaall K U in n g it d e o d m E O u t r h o e p r e Canada Brazil Mexico O La th ti e n r Japan O A t s h i e a r Africa o A th ll e r America 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 i 1,725 2,215 152 433 496 172 73 388 141 249 69 42 Dec.i ( 2,246 2,330 152 442 537 174 77 415 142 269 75 46 1970—Mar 2,307 2,711 159 735 549 178 74 453 158 286 71 47 June 2,561 2,724 161 712 557 175 65 472 166 286 76 54 Sept 2,746 2,853 157 720 597 177 63 582 144 283 73 58 Dec 3,080 2,907 146 708 645 181 60 603 140 290 71 64 1971—Mar 3,154 2,945 154 687 652 179 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
OCTOBER 1971 • MONEY RATES A 91 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Australia PPeerriioodd Ar ( g p e e n so ti ) n a (s A c u h s il t l r in ia g ) B (f e r l a g n iu c m ) C (d a o n l a la d r a ) ( C r e u y p l e o e n ) D ( e k n ro m n a e r ) k ( F m i a n r la k n k d a ) (pound) (dollar) 196 7 .30545 111.25 3.8688 2.0125 92.689 20.501 14.325 129.553 196 8 .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 196 9 .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 197 0 2 26.589 111.36 3.8659 2.0139 95.802 16.774 13.334 23.742 1970_Sept 24.888 110.87 3.8684 2.0145 3 98.422 16.770 13.331 23.748 Oct 24.874 110.97 3.8698 2.0146 97.890 16.775 13.331 23.736 Nov 24.864 111.11 3.8676 2.0147 98.014 16.792 13.336 23.722 Dec 24.836 111.12 3.8681 2.0137 98.276 16.792 13.354 23.722 1971—Jan 24.829 111.82 3.8665 2.0145 98.831 16.792 13.361 23.722 Feb 24.831 112.38 3.8651 2.0148 99.261 16.792 13.359 23.722 Mar 24.835 112.42 3.8670 2.0145 99.367 16.792 13.368 23.722 24.673 112.38 3.8696 2.0144 99.237 16.792 13.353 23.727 24.156 112.42 4 3.9676 2.0164 99.138 16.792 13.334 23.735 June 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 Aug 20.757 113.17 4.0264 2.0351 98.670 16.792 13.435 23.735 Sept 19.919 114.78 4.0844 2.0921 98.717 16.839 13.672 23.830 Period F (f r r a a n n c c e ) ( G D m e e r u a m t r s a k 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 a ) n M (d a o la ll y a s r i ) a M (p e e x s i o co ) ( e g N r u l e a il t n d h d e - s r) 196 7 20.323 25.084 13.255 275.04 .16022 .27613 32.519 8.0056 27.759 196 8 20.191 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 196 9 5 19.302 6 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 197 0 18.087 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 1970—Sept 18.112 27.537 13.211 238.53 .16005 .27935 32.314 8.0056 27.785 Oct 18.104 27.531 13.217 238.74 .16052 .27948 32.395 8.0056 27.781 Nov 18.120 27.544 13.231 239.03 .16064 .27956 32.402 8.0056 27.793 Dec 18.107 27.437 13.229 239.06 .16039 .27959 32.382 8.0056 27.763 1971—Jan. 18.119 27.496 13.269 240.58 .16045 .27932 32.515 8.0056 27.820 Feb 18.122 27.594 13.311 241.78 .16036 .27969 32.615 8.0056 27.814 Mar 18.129 27.538 13.304 241.87 .16063 .27971 32.616 8.0056 27.816 Apr 18.126 27.516 13.315 241.74 .16070 .27972 32.604^ 8.0056 27.776 May 18.094 7 28.144 13.330 241.87 .16059 .27979 32.642 8.0056 728.135 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 Aug 18.130 29.277 13.345 243.46 .16157 .28113 32.737 8.0056 28.693 Sept 18.112 29.794 13.401 246.94 .16292 .29583 33.354 8.0056 29.308 PPeerriioodd (po N un ew d) Zeal ( a d n o d ll ar) 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 AA (( SS rr ff oo aa rr uu nn iicc tt dd hh aa )) (p S e p s a e i t n a ) S (k w r e o d n e a n ) (( ee SS ff rr rr ww ll aa aa ii nn tt nn zz cc dd -- )) ( U p K d o n i o n u it m n g e - d d ) 196 7 276.69 8131.97 13.985 3.4784 139.09 1.6383 19.373 23.104 275.04 196 8 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 196 9 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 197 0 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 1970_Sept 110.98 13.994 3.4886 138.62 1.4287 19.225 23.219 238.53 Oct 111.08 13.993 3.4893 138.74 1.4290 19.282 23.090 238.74 Nov 111.22 13.996 3.4924 138.91 1.4290 19.324 23.155 239.03 Dec 111.23 14.021 3.4919 138.93 1.4290 19.340 23.187 239.06 1971—Jan 111.94 14.003 3.5000 139.81 1.4290 19.365 23.227 240.58 Feb 112.50 14.001 3.5031 140.51 1.4290 19.332 23.266 241.78 Mar 112.54 14.010 3.5019 140.56 1.4290 19.369 23.254 241.87 112.50 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 9 24.253 241.87 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 Aug 113.28 14.244 3.5289 141.46 1.4335 19.502 24.813 243.46 Sept 114.95 14.494 3.5970 140.88 1.4415 19.732 25.118 246.94 1 Effective Oct. 12, 1967, the Finnish markka was devalued from 3.2 8 Effective July 10, 1967, New Zealand adopted the decimal currency to 4.2 markkaa per U.S. dollar. system. The new unit, the dollar, replaces the pound and consists of 100 2 A new Argentine peso, equal to 100 old pesos, was introduced on cents, equivalent to 10 shillings or one-half the former pound. Jan. 1, 1970. In eight steps the peso was devalued to 6.35 per U.S. dollar 9 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per effective Sept. 30, 1971. U.S. dollar. 3 On June 1, 1970, the Canadian Government announced that, for the time being, Canada will not maintain the exchange rate of the Canadian NOTE.—After the devaluation of the pound sterling on Nov. 18, 1967, dollar within the margins required by IMF rules. the following countries devalued their currency in relation to the U.S. 4 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 dollar: Ceylon, Denmark, Ireland, New Zealand, and Spain. per U.S. dollar. Effective Aug. 16, 1971, the U.S. dollar convertibility to gold was sus- 5 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to pended; as from that day foreign central banks did not have to support 5.55 francs per U.S. dollar. the dollar rate in order to keep it within IMF limits. 6 Effective Oct. 26, 1969, the new par value of the German mark was Averages of certified noon buying rates in New York for cable transfers. set at 3.66 per U.S. dollar. For description of rates and back data, see "International Finance," 7 Effective May 10, 1971, the German mark and Netherlands guilder Section 15 of Supplement to Banking and Monetary Statistics, 1962. have been floated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 92 MONEY RATES • OCTOBER 1971 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Sept. 30, 1970 Rate CCoouunnttrryy 1970 1971 as of SSeepptt.. 3300,, Per Month 11997711 cent effective Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Argentina 6.0 Dec. 1957 6.0 Austria 5.0 Jan. 1970 5.0 Belgium 7.5 Sept. 1969 '6.5" '6.0" 's'.s" 5.5 Brazil 20.0 July 1969 20.0 Burma 4.0 Feb. 1962 4.0 Canada 6.5 Sept. 1970 6.0 5.25 5.25 Ceylon 5.5 May 1968 5.5 Chile 14.0 July 1969 14.0 Colombia 8.0 May 1963 8.0 Costa Rica 4.0 June 1966 4.0 Denmark 9.0 May 1969 8.0 7.5 7.5 Ecuador 8.0 Jan. 1970 8.0 El Salvador 4.0 Aug. 1964 4.0 Finland 7.0 Apr. 1962 i'so" 8.50 France 7.5 Aug. 1970 '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 'e'.o" 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 '5.'75' 's.'s" '5.'25' 5.25 Korea 24.0 Apr. 1970 23!6" 26.0" 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 10.0 June 1969 10.0 Portugal 3.5 Apr. 1970 •3.'75' 3.75 South Africa 5.5 Aug. 1968 '6.5" 6.5 Spain 6.5 Mar. 1970 •6.25" '6.0" 6.0 Sweden 7.0 July 1969 6.5 6.0 5.5 5.5 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 9.0 Sept. 1970 9.0 United Arab Rep. (Egypt). . 5.0 May 1962 5.0 United Kingdom 7.0 Apr. 1970 '6.0" '5.6" 5.0 Venezuela 5.5 June 1969 "5.0" 5.0 Vietnam 18.0 Sept. 1970 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—KdiiQ shown is for advances only. shown is the one at which it is understood the central bank transacts Indonesia—WdiTious rates depending on type of paper, collateral, comthe 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—2.5, 5, and 7 per cent for small credits to agricultural or fish produc- Brazil—^ 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 disand 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 enformation 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, 4Vi rediscounts, and cash position loans; and 18 per cent for selective redis- per cent for advances against government bonds, and 5Vi 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 RicaS 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
OCTOBER 1971 • MONEY RATES; ARBITRAGE A 93 OPEN MARKET RATES (Per cent per annum) Germany, Switzer- Canada United Kingdom France Fed. Rep. of Netherlands land Month 3 T m r b e o a il n s ls t u h , r s y 1 m Da o d y n a - e y t y o - i 3 B a a a m c n n c o c k e e n e p s t r t h , s - s ' 3 T r m b ea i o U s n s u t , r h y s D m a d o y a n - y t e o y - a B d ll e o a p n w o o k n a s e n i r t c s s e ' D m a o d y n a - e y t y o s - Tr 6 d e b 0 a a i y l - s l 9 s s u 0 , 4 r y D m a o d y n a - e y t y o s - 3 T r m b ea i o l s l n s u t , h ry s D m a d o y a n - y t e o y - d P is r r i c a v o t a e u t e n t 196 8 5.96 5.31 7.26 6.80 5.99 5.00 8.22 2.75 1.84 4.65 4.96 3.75 196 9 7.15 6.95 8.49 7.64 6.75 5.84 8.97 4.42 4.81 5.55 5.98 4.21 1970—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 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, 3.15 3.01 6.74 5.60 4.71 4.00 6.45 4.25 6.95 4.39 2.91 5.25 July. 3.58 3.64 6.42 5.57 5.00 4.00 5.62 4.25 6.33 2.69 4.03 5.25 Aug., 3.88 3.94 5.99 5.75 5.05 4.00 6.18 4.24 5.53 5.25 Sept. 3.93 4.16 5.42 4.83 4.39 3.00 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 PPrreemmiiuumm PPrreemmiiuumm DDDaaattteee K ( U i a n n d g i j. t d e o t d o m United S (f p a r v e o a r d dd ff (( (( oo iiss ++ -- rr cc )) ww )) oo oo oo aa uu nn rr rr nn dd tt iinn (( cc ff NN aa ee oo vv nn ee ff oo tt tt ii rr vv ee As Can ad A a dj. to United S (f p a r v e o a r d dd ff (( (( oo iiss ++ -- rr cc )) )) ww oo oo aa oo uu nn rr rr nn dd tt iinn (( cc ff NN ee aa oo nn vv ee ff tt oo tt ii rr vv ee quo U t . a S t . i on States Lon o d f on) ppoouunndd LLoonnddoonn)) qu i o n t ed quo U t . a S t . i on States Can o a f da) CC dd aa oo nn ll aa llaa dd rr ii ss aa nn CCaannaaddaa)) basis) Canada basis 1971 AApprr.. 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 MMaayy 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 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 JJuullyy 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 AAuugg.. 6 5.53 5.23 .30 -.48 -.18 3.92 3.83 5.23 -1.40 1.22 -.18 13 5.63 5.10 .53 .40 .93 4.88 3.92 5.10 -1.18 1.34 .16 20 5.73 4.49 1.24 -.24 1.00 3.84 3.75 4.49 -.74 1.13 .39 27 5.70 4.55 1.15 .91 2.06 3.79 3.70 4.55 -.85 1.13 .28 SSeepptt.. 3 4.89 4.42 .47 1.71 2.18 3.89 3.80 4.42 -.62 1.22 .60 10 4.72 4.59 .16 1.47 1.63 3.79 3.70 4.59 -.89 1.26 .37 17 4.72 4.68 .04 1.64 1.68 3.88 3.77 4.68 -.91 1.14 .23 24 4.77 4.67 .10 3.30 3.40 3.99 3.90 4.67 -.77 1.05 .28 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 niarket 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 • OCTOBER 1971 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti- Intl. Esti- E p n e d ri o o d f m to a t t a e l d M t o a n ry e - U S n ta i t t e e s d r m es a t t e o d f Algeria Ar ti g n e a n - t A ra u l s ia - A tr u i s a - g B iu e m l- Brazil Burma Canada Chile world 1 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—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.. 41,275 4,339 11,072 25,865 191 140 239 714 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... 41,240 4,404 10,963 25,875 191 140 239 714 1,466 45 42 791 47 4,338 10,925 191 140 253 728 1,502 46 42 791 47 May!!! 4,448 10,568 191 140 254 747 1,592 46 22 792 47 June.. 2^41,255 4,523 10,507 P26,225 191 140 254 747 1,584 46 22 792 47 July... 4,479 10,453 192 140 259 '•746 1,600 46 22 792 47 AUG.^'. 4,695 10,209 192 259 752 1,584 46 22 792 47 Ger- E p n e d ri 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 85 3,729 4,248 77 247 141 112 19 2,107 304 196 5 35 97 84 4,706 4,410 78 281 146 110 21 2,404 328 196 6 26 108 45 5,238 4,292 120 243 130 106 23 2,414 329 196 7 31 107 45 5,234 4,228 130 243 144 115 25 2,400 338 196 8 31 114 45 3,877 4,539 140 243 158 193 79 2,923 356 196 9 26 89 45 3,547 4.079 130 243 158 193 39 2,956 413 1970—Aug.. 26 89 45 3,537 4.080 120 243 158 151 26 2,983 474 Sept.. 26 89 45 3,537 4.081 119 243 148 151 26 2,983 530 Oct... 26 64 45 3,537 4,081 119 243 148 151 26 2,983 530 Nov.. 18 64 45 3,533 4,081 117 243 131 144 16 2,981 532 Dec.. 17 64 29 3,532 3,980 117 243 131 144 16 2,887 532 1971—Jan... 17 64 29 3,532 3,979 114 243 131 144 16 2,886 532 Feb... 17 64 29 3,531 3,978 99 243 131 144 16 2,885 534 Mar.. 16 64 29 3,527 3,977 99 243 131 144 16 2,884 539 Apr... 16 64 29 3,527 4,029 99 243 131 143 16 2,884 636 May.. 16 64 29 3,523 4,035 99 243 130 143 16 2,884 641 June.. 16 64 29 3,523 4,046 99 243 131 143 16 2,884 641 July.. 16 64 29 3,523 4,077 99 131 143 16 2,884 670 Aug. 14 64 49 3,523 4,076 99 131 143 16 2,884 679 E p n e d ri o o d f Kuwait a L n e o b n - Libya Ma s l ia a y- M c e o x i- Moroc- N la e n th d e s r - N w o a r y - 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 ia i 196 4 48 183 17 7 169 1,688 31 53 67 23 523 78 196 5 52 182 68 2 158 1,756 31 53 67 38 576 73 196 6 67 193 68 1 109 1,730 18 53 65 44 643 69 196 7 136 193 68 31 166 1,711 18 53 20 60 699 69 196 8 122 288 85 66 165 1,697 24 54 20 62 856 119 196 9 86 288 85 63 169 1,720 25 54 25 45 876 119 1970—Aug.. 86 288 85 63 171 1,751 27 54 40 54 901 119 Sept.. 86 288 85 63 176 1,801 34 54 40 56 902 119 Oct... 86 288 85 63 176 1,801 33 54 40 59 902 119 Nov.. 86 288 85 63 176 1,832 23 54 40 59 902 119 Dec.. 86 288 85 48 176 1,787 23 54 40 56 902 119 1971—Jan... 86 288 85 48 176 1,812 23 54 40 58 902 119 Feb... 86 322 85 48 176 1,812 23 54 40 59 902 119 Mar.. 86 322 85 48 176 1,812 23 54 40 60 902 119 Apr... 86 322 85 48 182 1,863 31 54 40 61 902 119 May.. 87 322 85 53 182 1,867 32 54 40 62 902 119 June.. 87 322 85 58 1,867 32 55 40 63 902 119 July. . 87 322 85 58 1,888 34 55 64 895 119 Aug.® 87 322 85 58 1,889 34 55 65 907 127 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
OCTOBER 1971 • GOLD RESERVES AND PRODUCTION A 95 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E p n er d i o o d f A S f o r u ic th a Spain Sweden Sw la it n z d e r- 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 en el e a - Y sl u a g v o ia - S I e f n o t t t r l l e . ments 4 1964 574 616 189 2,725 55 104 104 139 2,136 171 401 17 -50 1965 425 810 202 3,042 55 96 116 139 2,265 155 401 19 -558 1966 637 785 203 2,842 62 92 102 93 1,940 146 401 21 -424 1967 583 785 203 3,089 81 92 97 93 1,291 140 401 22 -624 1968 1,243 785 225 2,624 81 92 97 93 1,474 133 403 50 -349 1969 1,115 784 226 2,642 82 92 117 93 1,471 165 403 51 -480 1970_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 1,022 152 389 52 13 May 630 498 200 2,807 82 81 127 85 905 152 389 52 118 551 498 200 2,857 82 81 127 85 804 151 389 52 213 July 481 200 2,909 82 81 127 114488 391 52 225 Aug ^ 448866 220000 22,,990099 8811 8811 112277 339911 5522 221100 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 WWoorrlldd PPeerriioodd pp tt rr ii oo oo dd nn uu 11 cc -- A S f o r u ic th a Ghana C s (K o ha n i s n g a - o ) U S n ta i t t e e s d C a a d n a - M ic e o x - N ra ic g a u - a Co b l i o a m - India Japan P p h in il e ip s - t A ra u l s ia - o A th l e l r 196 5 11111,,,,,444444444400000.....00000 111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000666666666666666666999999999999999999..................444444444444444444 222222222666666666.........444444444 222222......333333 5555588888.....66666 111111111111111111122222222222222222225555555555555555555...................6666666666666666666 777777......666666 55555.....44444 1111111111111111111111111111111111.................22222222222222222 444444444444............666666666666 11111111118888888888..........1111111111 111111555555......333333 333333333333333000000000000000...............777777777777777 6666644444.....88888 196 6 11111,,,,,444444444455555.....00000 111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000888888888888888888000000000000000000..................888888888888888888 222222222444444444.........000000000 555555......666666 6666633333.....11111 111111111111111111111111111111111111114444444444444444444...................6666666666666666666 777777......555555 55555.....22222 99999999999999999.................88888888888888888 444444444444............222222222222 11111111119999999999..........4444444444 111111555555......888888 333333333333333222222222222222...............111111111111111 6666622222.....99999 1967 11111,,,,,444441111100000.....00000 111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000666666666666666666888888888888888888..................777777777777777777 222222222666666666.........777777777 555555......444444 5555533333.....44444 111111111111111111100000000000000000003333333333333333333...................7777777777777777777 555555......888888 55555.....22222 99999999999999999.................00000000000000000 333333333333............444444444444 22222222223333333333..........7777777777 111111777777......222222 222222222222222888888888888888...............444444444444444 5555599999.....44444 1968 11111,,,,,444442222200000.....00000 111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000888888888888888888888888888888888888..................000000000000000000 222222222555555555.........444444444 555555......999999 5555533333.....99999 99999999999999999994444444444444444444...................1111111111111111111 666666......222222 44444.....99999 88888888888888888.................44444444444444444 444444444444............000000000000 22222222221111111111..........5555555555 111111888888......555555 222222222222222777777777777777...............666666666666666 6666611111.....66666 1969 11111,,,,,444442222200000.....00000 111111111111111111,,,,,,,,,,,,,,,,,,000000000000000000999999999999999999000000000000000000..................777777777777777777 222222222444444444.........888888888 666666......000000 6666600000.....11111 88888888888888888889999999999999999999...................1111111111111111111 666666......333333 33333.....77777 77777777777777777.................77777777777777777 333333333333............444444444444 22222222223333333333..........7777777777 222222000000......000000 222222222222222444444444444444...............555555555555555 6666600000.....00000 1970P 111111111111111111,,,,,,,,,,,,,,,,,,111111111111111111222222222222222222888888888888888888..................000000000000000000 222222222444444444.........888888888 666666......222222 88888888888888888881111111111111111111...................8888888888888888888 666666......777777 77777777777777777.................11111111111111111 333333333333............777777777777 22222222224444444444..........8888888888 222222111111......111111 222222222222222333333333333333...............000000000000000 1970—July 999999999999999999555555555555555555..................222222222222222222 222222222.........000000000 6666666666666666666...................8888888888888888888 .................66666666666666666 ............333333333333 2222222222..........3333333333 111111111111111...............666666666666666 Aug 999999999999999999666666666666666666..................333333333333333333 222222222.........222222222 6666666666666666666...................3333333333333333333 .................77777777777777777 ............333333333333 1111111111..........9999999999 111111111111111...............666666666666666 Sept 999999999999999999666666666666666666..................222222222222222222 222222222.........222222222 6666666666666666666...................6666666666666666666 .................77777777777777777 ............333333333333 1111111111..........9999999999 111111111111111...............666666666666666 Oct 999999999999999999666666666666666666..................666666666666666666 6666666666666666666...................9999999999999999999 .................66666666666666666 ............333333333333 2222222222..........3333333333 111111111111111...............777777777777777 Nov 999999999999999999444444444444444444..................444444444444444444 6666666666666666666...................5555555555555555555 .................66666666666666666 ............333333333333 111111111111111...............777777777777777 Dec 888888888888888888999999999999999999..................777777777777777777 6666666666666666666...................8888888888888888888 .................55555555555555555 ............333333333333 222222222222222...............000000000000000 1971 Jan 999999999999999999111111111111111111..................333333333333333333 7777777777777777777...................0000000000000000000 .................44444444444444444 111111111111111...............777777777777777 Feb 888888888888888888999999999999999999..................666666666666666666 6666666666666666666...................6666666666666666666 .................66666666666666666 i 111111111111111...............666666666666666 Mar 999999999999999999444444444444444444..................333333333333333333 6666666666666666666...................7777777777777777777 .................55555555555555555 222222222222222...............333333333333333 Apr 999999999999999999111111111111111111..................999999999999999999 6666666666666666666...................5555555555555555555 .................55555555555555555 May 999999999999999999111111111111111111..................555555555555555555 6666666666666666666...................7777777777777777777 .................55555555555555555 June 999999999999999999111111111111111111..................333333333333333333 6666666666666666666...................7777777777777777777 July 5555555555555555555...................8888888888888888888 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 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM ARTHUR F. BURNS, Chairman J. L. ROBERTSON, Vice Chairman GEORGE W. MITCHELL J. DEWEY DAANE SHERMAN J. MAISEL ANDREW F. BRIMMER WILLIAM W. SHERRILL ROBERT C. HOLLAND, 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 DAVID C. MELNICOFF, Deputy Executive Direc- STEPHEN H. AXILROD, Associate Director tor SAMUEL B. CHASE, Associate Director GORDON B. GRIMWOOD, Assistant Director and LYLE E. GRAMLEY, Associate Director Program Director for Contingency Planning STANLEY J. SIGEL, Adviser HARRY J. HALLEY, Program Director for Man- MURRAY S. WERNICK, Adviser agement Systems KENNETH B. WILLIAMS, Adviser WILLIAM W. LAYTON, Director of Equal Em- JAMES B. ECKERT, Associate Adviser ployment Opportunity PETER M. KEIR, Associate Adviser BRENTON C. LEAVITT, Program Director for JAMES L. PIERCE, Associate Adviser Banking Structure EDWARD C. ETTIN, Assistant Adviser STEPHEN P. TAYLOR, Assistant Adviser LOUIS WEINER, Assistant Adviser OFFICE OF THE SECRETARY JOSEPH S. ZEISEL, Assistant Adviser TYNAN SMITH, Secretary LEVON H. GARABEDIAN, Assistant Director KENNETH A. KENYON, Deputy Secretary MURRAY ALTMANN, Assistant Secretary DIVISION OF INTERNATIONAL FINANCE NORMAND R. V. BERNARD, Assistant Secretary ROBERT SOLOMON, Director ARTHUR L. BROIDA, Assistant Secretary JOHN E. REYNOLDS, Associate Director ELIZABETH L. CARMICHAEL, Assistant Secretary 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 DIVISION OF SUPERVISION AND REGULATION JAMES A. MCINTOSH, Director 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 97 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. HALLEY, Deputy Controller DIVISION OF DATA PROCESSING JEROLD E. SLOCUM, Director CHARLES L. HAMPTON, Associate Director GLENN L. CUMMINS, Assistant Director DIVISION OF ADMINISTRATIVE SERVICES BENJAMIN R. W. KNOWLES, JR., JOSEPH E. KELLEHER, Director 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 98 FEDERAL OPEN MARKET COMMIHEE ARTHUR F. BURNS, Chairman ALFRED HAYES, Vice Chairman ANDREW F. BRIMMER MONROE KIMBREL FRANK E. MORRIS GEORGE H. CLAY SHERMAN J. MAISEL J. L. ROBERTSON J. DEWEY DAANE ROBERT P. MAYO WILLIAM W. SHERRILL GEORGE W. MITCHELL ROBERT C. HOLLAND, Secretary ARTHUR L. BROIDA, Deputy Secretary GEORGE GARVY, Associate Economist NORMAND R. V. BERNARD, Assistant Secretary LYLE E. GRAMLEY, Associate Economist CHARLES MOLONY, Assistant Secretary A. B. HERSEY, Associate Economist HOWARD H. HACKLEY, General Counsel JOHN E. REYNOLDS, Associate Economist DAVID B. HEXTER, Assistant General Counsel KARL A. SCHELD, Associate Economist J. CHARLES PARTEE, Economist ROBERT SOLOMON, Associate Economist STEPHEN H. AXILROD, Associate Economist CHARLES T. TAYLOR, Associate Economist ROBERT W. EISENMENGER, Associate Economist CLARENCE W. TOW, Associate Economist ALAN R. HOLMES, Manager, System Open Market Account CHARLES A. COOMBS, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL JOHN M. MEYER, JR., SECOND FEDERAL RESERVE DISTRICT, President A. W. CLAUSEN, TWELFTH FEDERAL RESERVE DISTRICT. Vice President MARK C. WHEELER, FIRST FEDERAL GAYLORD FREEMAN, SEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT G. MORRIS DORRANCE, JR., THIRD FEDERAL ALLEN MORGAN, EIGHTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOHN S. FANGBONER, FOURTH FEDERAL T. M. REARDON, NINTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT JOSEPH W. BARR, FIFTH FEDERAL MORRIS F. MILLER, TENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HARRY HOOD BASSETT, SIXTH FEDERAL JOHN E. GRAY, ELEVENTH FEDERAL RESERVE DISTRICT RESERVE DISTRICT HERBERT V. PROCHNOW, Secretary WILLIAM J. KORSVIK, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 99 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. PhOadeJphia 19101 Bayard L. England David P. Eastburn D. Robert Yamall, Jr. Mark H. Willes Cleveland 44101 Albert G. Clay Willis J. Winn 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 L 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 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 George C. Rankin Oklahoma City 73125 C. W. Flint, Jr. Howard W. Pritz Henry Y. Kleinkauf Omaha 68102 Chas. F. Jones Philip E. Coldwell DaUas 75222 Philip G. Hoffman T. W. Plant Joseph M. Ray Fredric W. Reed E H l o P u a s s to o n 7 7 7 99 0 9 0 9 1 Geo. T. Morse, Jr. J. Lee Cook W. A. Belcher Carl H. Moore San Antonio 78295 O. Meredith Wilson Eliot J. Swan San Francisco 94120 S. Alfred Halgren A. B. Merritt J. Leland Atwood Paul W. Cavan Los Angeles 90051 Frank Anderson William M. Brown Portland 97208 Royden G. Derrick Arthur L. Price Salt Lake City 84110 Francis G. Crane William R. Sandstrom Seattle 98124 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 100 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 2055L Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. {Stamps and coupons not accepted.) ANNUAL REPORT. SUPPLEMENT TO BANKING AND MONETARY STA- TISTICS. Sec. 1. Banks and the Monetary Sys- FEDERAL RESERVE BULLETIN. Monthly. $6.00 per tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. annum or $.60 a copy in the United States and 1967. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 its possessions, Bolivia, Canada, Chile, Colom- pp. $.35. Sec. 6. Bank Income. 1966. 29 pp. bia, Costa Rica, Cuba, Dominican Republic, $.35. Sec. 9. Federal Reserve Banks. 1965. 36 Ecuador, Guatemala, Haiti, Republic of Hon- pp. $.35. Sec. 10. Member Bank Reserves and duras, Mexico, Nicaragua, Panama, Paraguay, Related Items. 1962. 64 pp. $.50. Sec. 11. Cur- Peru, El Salvador, Uruguay, and Venezuela; 10 rency. 1963. 11 pp. $.35. Sec. 12. Money Rates or more of same issue sent to one address, $5.00 and Securities Markets. 1966. 182 pp. $.65. per annum or $.50 each. Elsewhere, $7.00 per Sec. 14. Gold. 1962. 24 pp. $.35. Sec. 15. Interannum 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. Subscription to monthly chart book includes IN METROPOLITAN AREAS: A STATISTICAL one issue. $.60 a copy in the United States and STUDY OF FACTORS AFFECTING RATES ON countries listed above; 10 or more sent to one BANK LOANS. 1965. 73 pp. $.50 a copy; 10 or address, $.50 each. Elsewhere, $.70 a copy. more sent to one address, $.40 each. 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 prosent 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 June 30, 1971. $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 101 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 AGRImore 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 ECOtained 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
A 102 FEDERAL RESERVE BULLETIN • OCTOBER 1971 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 INDUSby 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 Michael L. Wachter. Aug. 1971. 25 pp. SURVEY OF FINANCE COMPANIES, MID-1965. Apr. MORTGAGE REPAYMENTS AS A SOURCE OF 1967. 26 pp. LOANABLE FUNDS, by Robert Moore Fisher. Aug. 1971.43 pp. EVIDENCE ON CONCENTRATION IN BANKING THE USE OF INTEREST RATE POLICIES AS A MARKETS AND INTEREST RATES, Staff Eco- STIMULUS TO ECONOMIC GROWTH, by Robert nomic Study by Almarin Phillips. June 1967. F.Emery. Sept. 1971. 37pp. 11 pp. Printed in full in the Bulletin. NEW BENCHMARK PRODUCTION MEASURES, 1958 AND 1963. June 1967. 4 pp. (Reprints available as shown in following list.) THE PUBLIC INFORMATION ACT—ITS EFFECT ON REPRINTS MEMBER BANKS. July 1967. 6 pp. ADJUSTMENT FOR SEASONAL VARIATION. June INTEREST COST EFFECTS OF COMMERCIAL BANK 1941. 11 pp. UNDERWRITING OF MUNICIPAL REVENUE SEASONAL FACTORS AFFECTING BANK RESERVES. BONDS. Aug. 1967. 16 pp. Feb. 1958. 12 pp. THE FEDERAL RESERVE-MIT ECONOMETRIC LIQUIDITY AND PUBLIC POLICY, Staff Paper by MODEL, Staff Economic Study by Frank de Stephen H. Axilrod. Oct. 1961. 17 pp. Leeuw and Edward Gramlich. Jan. 1968. 30 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. THE PRICE OF GOLD IS NOT THE PROBLEM. Feb. 1968. 7 pp. INTEREST RATES AND MONETARY POLICY, Staff Paper by Stephen H. Axilrod. Sept. 1962. 28 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN MEASURES OF MEMBER BANK RESERVES. July 1960-67. Apr. 1968. 23 pp. 1963. 14 pp. MONETARY RESTRAINT AND BORROWING AND CHANGES IN BANKING STRUCTURE, 1953-62. CAPITAL SPENDING BY LARGE STATE AND Sept. 1963. 8 pp. LOCAL GOVERNMENTS IN 1966. July 1968. REVISION OF BANK DEBITS AND DEPOSIT TURN- 30 pp. OVER SERIES. Mar. 1965. 4 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff REVISED SERIES ON BANK CREDIT. Aug. 1968. Economic Study by Lyle E. Gramley and 4 pp. Samuel B. Chase, Jr. Oct. 1965. 25 pp. FEDERAL FISCAL POLICY IN THE 1960's. Sept. RESEARCH ON BANKING STRUCTURE AND PER- 1968. 18 pp. FORMANCE, Staff Economic Study by Tynan Smith. Apr. 1966. 11 pp. BUSINESS FINANCING BY BUSINESS FINANCE COMMERCIAL BANK LIQUIDITY, Staff Economic COMPANIES. Oct. 1968. 13 pp. Study by James Pierce. Aug. 1966. 9 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
FEDERAL RESERVE BOARD PUBLICATIONS A 103 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. RESPONSE OF STATE AND LOCAL GOVERNMENTS 1968. 30 pp. TO VARYING CREDIT CONDITIONS. Mar. 1971. REVISION OF CONSUMER CREDIT STATISTICS. 24 pp. Dec. 1968. 21 pp. CHANGES IN BANK LENDING PRACTICES, 1970. HOUSING PRODUCTION AND FINANCE. Mar. 1969. Apr. 1971.5 pp. 7 pp. U.S. BALANCE OF PAYMENTS AND INVESTMENT OUR PROBLEM OF INFLATION. June 1969. 15 pp. POSITION. Apr. 1971. 14 pp. THE CHANNELS OF MONETARY POLICY, Staff Eco- INTEREST RATES, CREDIT FLOWS, AND MONnomic Study by Frank de Leeuw and Edward ETARY AGGREGATES SINCE 1964. June 1971. Gramlich. June 1969. 20 pp. 16 pp. REVISION OF WEEKLY SERIES FOR COMMERCIAL TWO KEY ISSUES OF MONETARY POLICY. June BANKS. Aug. 1969. 5 pp. 1971.4 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. SURVEY OF DEMAND DEPOSIT OWNERSHIP. June 20 pp. 1971. 12 pp. RECENT CHANGES IN STRUCTURE OF COMMER- BANK RATES ON BUSINESS LOANS—REVISED CIAL BANKING. Mar. 1970. 16 pp. SERIES. June 1971. 10 pp. SDR's IN FEDERAL RESERVE OPERATIONS AND INDUSTRIAL PRODUCTION—REVISED AND NEW STATISTICS. May 1970. 4 pp. MEASURES. July 1971. 26 pp. INFLATION IN WESTERN EUROPE AND JAPAN. Oct. 1970. 13 pp. CHANGES IN TIME AND SAVINGS DEPOSITS, JANUARY—APRIL 1971, July 1971. 13 pp. REVISION OF THE MONEY STOCK. Dec. 1970. 23 pp. BANKING AND MONETARY STATISTICS, 1970. Selected series of banking and monetary statistics MEASURES OF SECURITY CREDIT. Dec. 1970. for 1970 only. Feb., Mar., and July 1971. 19 pp. 11 pp. FINANCIAL DEVELOPMENTS IN THE SECOND BALANCE OF PAYMENTS PROGRAM: REVISED QUARTER OF 1971. Aug. 1971. 10 pp. GUIDELINES FOR BANKS AND NONBANK FINAN- CIAL INSTITUTIONS. Jan. 1971. 12 pp. TREASURY AND FEDERAL RESERVE FOREIGN EX- CHANGE OPERATIONS. Oct. 1971. 19 pp. MONETARY AGGREGATES AND MONEY MARKET CONDITIONS IN OPEN MARKET POLICY. Feb. REVISED MEASURES OF MANUFACTURING CAPAC- 1971.26 pp. ITY UTILIZATION. Oct. 1971. 3 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 104 FEDERAL RESERVE BULLETIN • OCTOBER 1971 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3.) Acceptances, bankers', 14, 33, 35 Deposits (See also specific types of deposits): Agricultural loans of commercial banks, 24, 26 Accumulated at commercial banks for payment of Arbitrage, 93 personal loans, 32 Assets and liabilities (See also Foreigners): Adjusted, and currency, 19 Banks, by classes, 20, 24, 25, 26, 39 Banks, by classes, 11, 20, 25, 29, 39 Banks and the monetary system, 19 Euro-dollars, 88 Corporate, current, 51 Federal Reserve Banks, 12, 88 Federal Reserve Banks, 12 Postal savings, 19, 25 Automobiles: Subject to reserve requirements, 18 Consumer instalment credit, 56, 57, 58 Discount rates (See Interest rates) Production index, 60, 61 Discounts and advances by Reserve Banks, 4, 12, 13, 15 Bank credit proxy, 18 Dividends, corporate, 50, 51 Bankers' balances, 25, 28 Dollar assets, foreign, 77, 83 {See also Foreigners, claims on, and liabilities to) I 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 0 branches, 30, 88 Farm mortgage loans, 52, 53 .S Brokerage balances, 87 Federal agency obligations, 12, 13, 14, 15 Business expenditures on new plant and equipment, 51 Federal finance: Business indexes, 64 Cash transactions, 42 t Business loans (See Commercial and industrial loans) Receipts and expenditures, 43 Treasury operating balance, 42 Federal funds, 8, 24, 26, 30, 35 Capacity utilization, 64 Federal home loan banks, 40, 41, 53 1 Capital accounts: Federal Housing Administration, 52, 53, 54, 55 Banks, by classes, 20, 25, 30 Federal intermediate credit banks, 40, 41 Federal Reserve Banks, 12 Federal land banks, 40, 41 Central banks, 92, 94 Federal National Mortgage Assn., 40, 41, 55 Certificates of deposit, 30 Federal Reserve Banks: Coins, circulation, 16 L < O Commercial and industrial loans: Condition statement, 12 U.S. Govt, securities held, 4, 12, 15, 44, 45 Commercial banks, 24, 33 Federal Reserve credit, 4, 6, 12, 15 Weekly reporting banks, 26, 31 •A Commercial banks: Federal Reserve notes, 12, 16 Federally sponsored credit agencies, 40, 41 i Assets and liabilities, 20, 24, 25, 26 Finance companies: Consumer loans held, by type, 57 Loans, 26, 56, 57, 59 Deposits at, for payment of personal loans, 32 Paper, 33, 35 Loans sold outright, 33 Financial institutions, loans to, 24, 26 Number, by classes, 20 Float, 4 Real estate mortgages held, by type, 52 Flow of funds, 72 Commercial paper, 33, 35 Foreign: Condition statements (See Assets and liabilities) Currency operations, 12, 14, 77, 83 Construction, 64, 65 fi Deposits in U.S. banks, 5, 12, 19, 25, 29, 88 EI Consumer credit: Exchange rates, 91 Instalment credit, 56, 57, 58, 59 1 Noninstalment credit, by holder, 57 Trade, 75 Foreigners: Consumer price indexes, 64, 68 Claims on, 84, 85, 88, 89, 90 Consumption expenditures, 70, 71 Liabilities to, 30, 78, 79, 81, 82, 83, 88, 89, 90 Corporations: Sales, profits, taxes, and dividends, 50, 51 Security issues, 48, 49 Gold: Security yields and prices, 36, 37 Certificates, 12, 13, 16 Cost of living (See Consumer price indexes) Earmarked, 88 Currency and coin, 5, 10, 25 Net purchases by U.S., 76 Currency in circulation, 5, 16, 17 Production, 95 Customer credit, stock market, 38 Reserves of central banks and govts., 94 Stock, 4, 19, 77 Debits to deposit accounts, 15 Government National Mortgage Association, 55 Debt (See specific types of debt or securities) Gross national product, 70, 71 Demand deposits: Adjusted, banks and the monetary system, 19 Hours and earnings, manufacturing industries, 67 Adjusted, commercial banks, 15, 18, 25 Housing permits, 64 Banks, by classes, 11, 20, 25, 29, 39 Housing starts, 65 Ownership by individuals, partnerships, and corporations, 32 Subject to reserve requirements, 18 Income, national and personal, 70,71 Turnover, 15 Industrial production index, 60-63, 64 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A 105 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 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 Commercial banks, 18 Saving: Federal Reserve Banks, 12, 15 Flow of funds series, 72 Life insurance companies, 39 National income series, 71 Savings and loan assns., 40 Savings and loan assns., 40, 45, 53 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: Yields and prices of securities, 36, 37 Capacity utilization, 64 State member banks, 22, 32 Production index, 61, 64 Stock market credit, 38 Margin requirements, 10 Stocks: Member banks: New issues, 48, 49 Assets and liabilities, by classes, 20, 24 Yields and prices, 36, 37 Borrowings at Reserve Banks, 6, 12 Deposes, 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 Member bank holdings, 18 Treasury deposits at Reserve Banks, 5, 12, 42 U.S. Govt, securities: National banks, 22, 32 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 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 Yields and prices, 36, 37 Payrolls, manufacturing index, 64 United States notes, 16 Utilities, production index, 61, 63, 64 Personal income, 71 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
BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES July mi 1>ramh^ll.W. gdvm,Cart. A (S THE FEDERAL RESERVE SYSTEM Q) Q <7 HAWAII Legend Boundaries of Federal Reserve Districts Boundaries of Federal Reserve Branch Territories O Board of Governors of the Federal Reserve System ® Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER http://fraser.stlouisfed.org/ • Federal Reserve Bank Facilities Federal Reserve Bank of St. Louis
Cite this document
Federal Reserve (1971, September 30). Federal Reserve Bulletin, 1971-10. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_197110
@misc{wtfs_bulletin_197110,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 1971-10},
year = {1971},
month = {Sep},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_197110},
note = {Retrieved via When the Fed Speaks corpus}
}