Federal Reserve Bulletin, 1972-03

F e d e r a l R e s e r v e Bulletin MARCH 1972 * * * * * * * * BOARD OF GOVERNORS ■ THE FEDERAL RESERVE SYSTEM ■ WASHINGTON, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

FEDERAL RESERVE BULLETIN CONTENTS NUMBER 3 □ VOLUME 58 □ MARCH 1972 201 Mortgage, Construction, and Real Estate Markets 215 Ways to Moderate Fluctuations in the Construction of Housing 226 Staff Economic Studies: Summary 228 Treasury-Federal Reserve Foreign Exchange Operations 257 Statements to Congress 279 Law Department 321 Announcements 322 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 112 Board of Governors and Staff A 114 Open Market Committee and Staff; Federal Advisory Council A 115 Federal Reserve Banks and Branches A 116 Federal Reserve Board Publications A 120 Index to Statistical Tables Map of Federal Reserve System on Inside Back Cover EDITORIAL COMMITTEE Charles Molony J. Charles Partee Robert C. Holland Robert Solomon Kenneth B. Williams Elizabeth B. Sette The Federal Reserve BULLETIN is issued monthly under the direction of the staff edi­ torial committee. This committee is responsible for opinions expressed except in official statements and signed articles. Direction for the art work is provided by Mack Rowe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

M o rtg a g e , C o n s tru c tio n , a n d R e a l E s ta te M a r k e ts MAINTAINING THE UPSWING that began in the summer of 1970, outlays for new construction expanded to yet another new high this winter. Private residential expenditures, which accounted for all of the increase in real terms in 1971, have continued to dominate the advance. There has been relatively little further change in nonresidential construction expendi­ tures—either public or private. Thus far in 1972, a year in which general business activity is widely expected to be more expansive than in 1971, mort­ gage funds have remained ample and reliance on secondary support from‘Federally sponsored agencies has been limited. With spreads of deposit rates over short-term market rates unusually wide, savings inflows to depositary institutions have remained high. Under these circumstances, a number of large commercial banks reduced rates paid to savers, but nonbank thrift institu­ tions generally have maintained their deposit rates. Also, mortgage-repayment flows have continued large and lenders’ liquidity positions have been strengthened appreciably further. Reflecting these developments, outstanding com­ mitments for mortgages reported by thrift institutions have exceeded earlier peaks. Even though yields on corporate and other long-term in­ vestment instruments moved up somewhat in February, yields on mortgages have continued to decline. This down- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

202 FEDERAL RESERVE BULLETIN □ MARCH 1972 RESIDENTIAL MORTGAGE COMMITMENTS 1 edge higher as SAVINGS FLOWS hold near earlier peak RATIO SCALE, BILLIONS OF DOLLARS “Net savings inflows” are quarterly averages for savings and loan associations and mutual savings banks at seasonally adjusted annual rates. “Mortgage commitments outstanding,” which are mainly residential, are seasonally adjusted end-of-quarter totals for all savings and loan associations and for New York State mutual savings banks. Latest data, Q4. trend has helped to bolster demands for existing as well as new homes in both the nonsubsidized and the subsidized sec­ tors of the market. SELECTIVE CONTROLS Under Phase II of the President’s new economic program, AND OTHER RECENT the operations of the Construction Industry Stabilization INNOVATIONS Committee (CISC), which had been established early last year to help moderate inflationary developments in con­ struction wage contracts, were continued along with those of the newly created Pay Board. Subject to the general coordination of the Cost of Living Council, the standard set by the Pay Board for average wage increases negotiated under all types of new contracts is 5.5 per cent a year. And, de­ pending on tax and other considerations, the end-of-year goal for average annual increases in prices—which in the case of real estate relate mainly to rents for certain existing residen­ tial rental units—has been established at 2.5 per cent. Prices of most types of residential and nonresidential real estate for sale were exempted from controls under Phase II, mainly because of the difficulty in comparing such hetero­ geneous items. Also, because of the administrative burden entailed and the actual and prospective improvement in available supplies, more than two-fifths of existing rental units were removed from rent controls in late January. The majority of these units are in structures with not more than four units and with longer than month-to-month rental agreements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 203 In January, a statistical and surveillance program covering rates on home mortgages and other types of consumer loans on a sample basis was announced by the new Committee on Interest and Dividends. This program includes a plan for special reports to the Cost of Living Council and to the public and for discussion of developments with lenders as circum­ stances warrant. Other official actions designed mainly to help moderate cyclical shifts in mortgage lending and related residential construction activity have also been made effective recently. (In this connection, see also the report beginning on page 215 of this B u lletin .) Some of these actions broaden the geo­ graphic scope and investment range of individual lender groups; others point toward further liberalizing certain loan terms available to borrowers and enhancing the potential liquidity of mortgages held by investors. For example, last August, the Federal Home Loan Bank Board raised to 95 per cent the maximum loan-to-value ratio permitted Federal savings and loan associations on conventional home mort­ gages subject to certain conditions. Perhaps more important, early this year, the Federal National Mortgage Association and the still relatively new Federal Home Loan Mortgage Corporation instituted a secon­ dary market for conventional whole mortgages based on standardized mortgage documents. The FHLMC, which op­ erates under the aegis of the FHLBB, had already begun to expand this existing market for participations in conventional mortgages. Conventional loans presently account for about two-thirds of the total dollar volume of loans outstanding on 1- to 4-family homes. Trading in this new secondary market remains to be developed further, but this marks the first time that such a market has existed on a basis even potentially com­ parable to that for Government-underwritten mortgages. Within the Government-underwritten sector, prospects for improving mortgage liquidity were also increased with the successful introduction last autumn of the first issue of new mortgage-backed serial notes guaranteed by the Government National Mortgage Association. Unlike the regular GNMA “pass-through” instruments that had been introduced earlier, these new notes provide investors with a choice of maturities on a basis similar to those offered on some other types of mar­ ket securities. In addition, GNMA instituted new programs last August under its special assistance functions. These Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

204 FEDERAL RESERVE BULLETIN □ MARCH 1972 programs permit GNMA under certain conditions to absorb some of the discount points that sellers might otherwise have to pay. Moreover, to allow sellers in higher-cost areas to participate more fully in such assistance, Congress recently raised the loan limits for eligible homes under these programs from $22,000 to as high as $36,750. MORTGAGE MARKET Mortgage lending commitments outstanding for residential DEVELOPMENTS and other properties have remained exceptionally high in early 1972. Mortgage yields required by lenders have con­ tinued to move down, and use of the special support available from FNMA and other nondepositary sources has remained comparatively small. Mortgage terms. Contract interest rates for conventional first mortgages on new homes averaged 7.60 per cent in February. Although still quite high by pre-1966 standards, 2 | MORTGAGE YIELDS resume decline after summer, YIELD SPREAD over bonds becomes positive, BASIS POINTS and DISCOUNTS drop POINTS Mortgage data based on FHA field-office reports. For “conventional,” average interest rates are for first mortgages on new homes. For “FHA-insured,” weighted averages of private secondary market bid prices for certain new-house mortgages (shown at a discount from par in the bottom panel) converted to annual yield. Thin lines indicate months affected by adjustment in contractual interest rate. For corporate bonds, weighted average of new public­ ly offered bonds with at least 5-year call protection. (Moody’s Aaa and Aa and A adjusted to Aaa.) Latest data, February. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 205 the rate was as much as 25 basis points below the level that had prevailed last August when the President’s wage-price freeze was inaugurated. The average rate for mortgages on existing homes, at 7.65 per cent in February, was also at the lowest level since the new economic program was instituted, ac­ cording to data from the Federal Housing Administration. In some localities, moreover, rates—particularly for highdownpayment loans on new houses—were at or below 7 per cent. Apart from the dampening of inflationary expectations since August, the recent mortgage-rate decline has reflected the persistence of a still very high level of net savings inflows to thrift institutions. These inflows reached a record for Jan­ uary and February combined. However, continuance of heavy demand for mortgage loans and of uncertainties about future savings inflows, the strength of future demands for funds by corporations and other long-term borrowers, and the likely extent of short-term rate increases have tended to limit the mortgage rate decline. Also, while there has been some shift in emphasis away from the high-cost types of consumer accounts pioneered in recent years, rates on savings deposits at thrift institutions have generally not been lowered despite fairly widespread downward adjustments at commercial banks. In the relatively sensitive secondary market for Govern­ ment-underwritten mortgages, yields had begun to turn down in August, and by February they were 51 basis points below their July level, according to the FHA. As a result, discount points, which last summer had again become a serious prob­ lem for sellers of new and existing homes utilizing such mort­ gages, were down to an average of fewer than 4 points by February, based on the 7 per cent contract rate ceiling that has been in effect for more than a year. This improvement has eliminated reliance at this time on GNMA’s special assistance programs for subsidizing excessive discounts. Other distortions that had affected the mortgage markets have also been corrected to some extent under the generally easier credit conditions that have persisted since August. Last autumn, for one of the few times since early 1966, the yield required by lenders on FHA-insured home mortgages dropped below the average contract rate for conventional home mortgages. Also, an unusual negative gross yieldspread for mortgages as against corporate bonds that had developed early last year was eliminated. While the gross yield-spread in favor of FHA-insured home mortgages was Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

206 FEDERAL RESERVE BULLETIN □ MARCH 1972 FNMA PURCHASE AUCTION still quite narrow, it averaged above 35 basis points in the early months of 1972. Based on results from the FNMA purchase auction for Government-underwritten mortgages on March 6, implicit yields on short-term forward-purchase commitments—the major type in which bidders have been actively interested since last summer—were down further from the 7.61 per cent level reached earlier this winter. Since autumn, bids received by FNMA have fluctuated at a very low level. Mortgage companies, which are the major traders in this market, have found other buyers. In some cases, such com­ Bids received and accepted for all commitments to purchase Govt.- panies have opted to build up warehouse lines of uncom­ underwritten home mortgages re­ mitted mortgages at commercial banks under the very favor­ gardless of maturity. ‘ ‘Implicit yield” is average equivalent secondary mar­ able terms prevailing—apparently in anticipation of further ket yield accepted by FNMA on short-term commitments. Yields improvements in secondary mortgage market prices during shown are gross before deduction of mortgage-servicing fee. Latest data, the period ahead. auction of Mar. 20. In lanuary, maturity and loan-to-price terms on con­ ventional loans were being maintained at or above the abruptly liberalized levels that developed initially in late 1970, as shown in Chart 3. A factor permitting the higher loan-to-price NON-RATE TERMS for CONVENTIONAL HOME MORTGAGES more liberal since late 1970 YEARS Monthly data from FHLBB, with cooperation of the FDIC, are for conventional first mort­ gages originated by major lender groups on single-family homes for purchase only. Latest data, January. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 207 ratios available to borrowers has been increased reliance by lenders on private mortgage insurance, a trend that is likely to grow under prevailing market conditions. Partly reflecting the expansion in loan-to-price ratios, loan amounts, which had changed relatively little during the two preceding years, increased to an appreciable degree during 1971, especially for loans on existing homes. In the case of multifamily and other income properties, contract rates and other terms have apparently also been liberalized further this winter. Moreover, indications are that equity participation arrangements have been used to a far lesser extent than in other recent years. Mortgage debt expansion. Seasonally adjusted net mort­ gage debt formation early this year appeared to be holding at an annual rate very near the remarkably high—$54 bil­ lion—pace that had been reached in the third quarter of 1971 after an extended six-quarter rise. In 1971 as a whole, net mortgage flows approximated $48 billion, about 75 per cent more than the previous peak in 1969. Loans on all types of nonfarm properties shared in the exceptional further advance in 1971. However, the net in­ crease was most marked for mortgages on 1- to 4-family units. NET INCREASES in MORTGAGE DEBT hold near earlier highs for all property-types with major support from SAVINGS AND LOANS and COMMERCIAL BANKS RATIO SCALE, BILLIONS OF DOLLARS 60 RESIDENTIAL TOTAL TOTAL SAVI_N G: S v AND L — OA — N v S MULTIFAMILY LIFE INSURANCE COS. MUTUAL SAVINGS BANKS Quarterly data estimated (and converted to seasonally ad- mortgage debt net increases are included in net increases shown justed annual rates) by Federal Reserve as required to sup- for “total” and for separate institutions. Q4 and other recent plement reports of Federal agencies and private sources. Farm data, preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

208 FEDERAL RESERVE BULLETIN □ MARCH 1972 As compared with income properties generally, such units, which include condominiums, had experienced a considerable shortfall in necessary funds in 1969 and early 1970. Since then, the resulting overhang of demands has affected not only construction loans and permanent financing of new units but especially transactions in existing homes. Moreover, last year, with interest rates lower and with loan amounts and other mortgage terms more liberal, refinancing of existing homes accelerated, and refinancing of income properties also increased. Among the major types of lenders, savings and loan as­ sociations—long the dominant group in the home mortgage market—led the expansion in mortgage debt, not just in the home sector but in the multifamily property category as well. Altogether, the associations expanded their mortgage port­ folios almost as much in 1971 as in the preceding 2 Vi years combined. Even so, with the aid of some additional borrow­ ing from commercial banks, the associations were able to repay as much as $2.6 billion to the Federal home loan banks —twice the net volume borrowed from that source in 1970. In addition, they purchased a substantial share of the new GNMA-guaranteed mortgage-backed securities that became available during the year, and they took advantage of their liberalized nonmortgage lending privileges to expand their holdings of mobile home debt as well. Net takings of mortgages by commercial and mutual savings banks also contributed appreciably to the accelerated pace of mortgage lending in 1971. In fact, net additions by commercial banks reached new peaks for all types of mort­ gages and those by mutual savings banks were at a 6-year high. Under such circumstances, net purchases by FNMA dropped to the lowest level since 1968 and net purchases by the FHLMC were limited largely to developmental op­ erations. On the other hand, life insurance companies, al­ though benefiting from a sharply reduced demand for policy loans, registered a net decline in home mortgage holdings for the fifth consecutive year and recorded the smallest net increase in over-all mortgage holdings in more than two decades. CONSTRUCTION Total outlays for new construction in February were at an estimated seasonally adjusted annual rate of $119 billion. This was 17 per cent above the total for February a year earlier and 10 per cent above the total in 1971 as a whole, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 209 a year when such outlays exceeded $100 billion for the first time in history. Construction costs. Construction costs this winter have apparently continued only a little changed from August, at about 135 per cent of their 1967 average, according to the Commerce Department’s composite cost index. However, reflecting their already advanced level, higher costs early this year are estimated to have accounted for half the estimated year-to-year rise in total current-dollar outlays for new con­ struction. Although wage settlements under the CISC have tended to be appreciably less liberal than was the case last 5 I NEW CONSTRUCTION OUTLAYS continue upward TOTAL as RESIDENTIAL CONSTRUCTION moves even higher RESIDENTIAL Census Bureau monthly data on current-dollar value of new construction put in place at sea­ sonally adjusted annual rates. Recent data, preliminary; February, Federal Reserve estimate. year, they have ranged above the general stabilization guide­ line. Moreover, land costs, which are not included in new construction expenditures and which are not under price controls, have continued upward. Costs of building ma­ terials had risen sharply early in 1971 after an extended period of limited change, as the pace of residential activity con­ tinued to escalate beyond suppliers’ expectations. This winter, following the wage-price freeze, prices of lumber and of some related materials increased sharply again as housing starts moved even higher. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

210 FEDERAL RESERVE BULLETIN □ MARCH 1972 ________ Nonresidential. Seasonally adjusted expenditures for new business construction private nonresidential construction projects early this year TOTAL 20 were holding somewhat above the record current-dollar rate reached in the second half of last year. Growth in office 10 building activity has apparently slowed, but indications are y ------- INDUSTRI At that outlays for other types of commercial structures—in g particular for shopping centers, which tend to follow residential h 1968 h r 1969 b h 1970 i h 1971 h 4 construction—have continued to provide additional support, census Bureau monthly data on Outlays for industrial plants, after a sharp further decline current-dollar value of new construc­ tion put in place at seasonally ad- through most of 1971, have held at a somewhat improved justed annual rates. Recent data pre- . • . A i • 1 m liminary. Latest, Jan. rate in recent months. Additional increases are likely in 1972, judging from recent surveys of plans for plant and equipment expenditures. Outlays for religious, educational, medical, and other types of institutional structures have also tended higher. This winter, expenditures for public construction, which had expanded sharply in late 1970, have continued to fluctuate around their year-earlier rate. Although financial market conditions have remained favorable, resistance by some State and local authorities to higher construction costs has limited implementation of some projects. Also require­ ments for educational buildings have slowed as growth in elementary school enrollments has been tapering off. But allocations of highway funds have been accelerated to help ease unemployment problems in some areas. Also, outlays for water and sewage disposal systems have found increased Federal and local support under conditions of growing con­ cern about ecological problems and the need to accommodate further residential expansion. Residential. Led by an unprecedented boom in private housing starts, outlays for private residential construction— the major upward force in the economy last year—have continued the rise initiated in mid-1970. Despite some fluctua­ tion, the upsurge in starts has persevered since the first quarter of 1970; and in the first 2 months of this year, it carried well above the exceptional 2.2-million-unit annual rate reached in the fourth quarter of 1971. In 1971 as a whole, private housing starts exceeded 2 mil­ lion units for the first time in history. This was as much as 600,000 units above the average for the preceding 2 years. Moreover, it was 7 per cent above the previous high that had stood since 1950, a year when mobile home shipments— which in 1971 accounted for a record of nearly one-half million units—were of insignificant magnitude. In fact, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 211 6 | PRIVATE HOUSING STARTS continue to rise RATIO SCALE, MILLIONS OF UNITS with MOBILE HOME SHIPMENTS also higher Census Bureau data for private housing starts and Mobile Home Manufacturers Association data for mobile home shipments converted to seasonally adjusted annual rates by Census Bureau and to quarterly averages by Federal Reserve. “Multifamily” includes 2 or more units. Latest figures—housing starts, Jan.-Feb. average; mobile home shipments, Jan. combined count of housing starts and mobile home ship­ ments in 1971 aggregated more than 2.5 million units, a figure somewhat above the decennial target set for annual production of new housing in the Housing Act of 1968. Among conventional starts, multifamily units alone reached a new high in 1971. However, their share of the total remained relatively unchanged, at 44 per cent, as single-family starts also expanded sharply to exceed the 1-million-unit mark for the first year since 1959. Starts of single-family units, which are uniquely dependent on a smoothly functioning market for existing units, had been much more limited than starts of rental apartments by the tight mortgage market conditions and the higher costs that had prevailed in 1970 and earlier years. But in 1971, even though the level of costs was up further, the sharp increase in the availability of mortgage funds at relatively favorable terms reopened the opportunity for upgrading and for first-home purchases that had been postponed earlier. Also, demographic factors were begin­ ning to be more favorable to demand for single-family homes for the first time since the late 1950’s, and with the starts rate for apartment units already running more than 40 per cent above the high levels reached in other recent years, builders in 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

212 FEDERAL RESERVE BULLETIN □ MARCH 1972 HOUSING STARTS were under greater pressure from lenders to reorient supply MILLIANS At UNITS toward the effective reach of the market for single-family NONSUBSIDIZED SUBSIDIZED homes. Contributing substantially, too, to the totals for both single-family and multifamily starts last year were units started under the subsidy programs of the Department of Housing and Urban Development and the Farmers Home Administration. Under such programs, effective interest costs Based on data from Census Bureau, to eligible borrowers may be reduced to as low as 1 per cent. HUD, and also Farmers Home Ad­ ministration adjusted to exclude re­ Even though starts without such subsidies increased very habilitations; subsidized starts in­ clude publicly owned. 1971 data, sharply last year, subsidized starts in total held somewhat preliminary. above their advanced earlier level. For the second successive year they exceeded the 400,000 average annual target for new low- and moderate-income housing set by the Congress in 1968. For the calendar year 1972, Government projections in­ dicate that subsidized housing starts might rise above onehalf million units. However, this may depend on results of the ongoing review of the over-all effectiveness and the cost of the programs now under way. It also may be influenced by the extent to which builders are able to comply with the new quality criteria introduced by HUD early this year. While allowance for greater-than-usual loan default problems had been made in connection with such programs, the incidence of defaults thus far has considerably exceeded initial expecta­ tions. The record rate of shipments of new mobile homes in 1971, previously mentioned, was particularly striking in light of the even more striking advance registered by conven­ tional residential starts. However, such shipments, which are not included in residential construction outlays, also benefited from the generally easier money market conditions that prevailed over the year as a whole. Moreover, funds for such loans were augmented by further implementation of earlier legislation providing for entry of the savings and loan associations into this segment of the consumer loan market. In addition, the availability of new and improved mobile home parks expanded and community acceptance of such shelter broadened as manufacturers continued to con­ centrate on the larger, upgraded units that have constituted an increased proportion of sales in recent years. The median price of new homes sold by speculative builders turned upward again in 1971, reversing a decline that had developed in 1970. However, this upturn reflected mainly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MORTGAGE, CONSTRUCTION, AND REAL ESTATE 213 HOME PRICES - MERCHANT BUILDERS the shift in the mix of such homes toward nonsubsidized units THOUSANDS OF DOLLARS —which in general are of higher grade—on a sales count that, over-all, ran a third above a year earlier. For 1971 as a whole, the median price was about $25,200—$1,800 more than in 1970. Even so, it was still some $400 short of the median in 1969 as builders concentrated on townhouses and simpler units in an attempt to build closer to the effective reach of the nonsubsidized market. Reflecting the success Census Bureau data (under HUD of this attempt, the median price of homes for sale last year contract) for 1-family homes avail­ able from merchant builders. Homes was closer to the median price of the units actually sold than in for sale or sold may be at any stage of construction. Prices shown are any year since 1968. annual medians. Latest data, 1971. Sales prices of existing homes, which also reflect shifts in the composition of demands, were at a median of $24,810, according to the National Association of Real Estate Boards. This was 8 per cent above a year earlier, compared with a year-to-year rise of 6 per cent in 1970. Meanwhile average rents on prevailing contracts for single-family homes and apart­ ments increased over 4 per cent in each of those years, as measured by the Bureau of Labor Statistics. Based on the number of units available and fit for occupancy, rental vacancy rates have tended higher as supplies of com­ pleted new housing have increased. However, at 5.3 per cent in the fourth quarter of last year, the average was still below the relatively reduced rate in 1967 and was well below the recent high in 1965. Moreover, vacancy rates in the case of homeowner properties, at 0.9 per cent, continued excep­ tionally low. Regional differences remained typically wide, RESIDENTIAL VACANCY RATES remain at or near recent lows PER CENT Census Bureau quarterly data. Vacancy rates relate to vacant, not dilapidated dwellings available for rent or sale. Latest figures, Q4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

214 FEDERAL RESERVE BULLETIN □ MARCH 1972 ranging in the case of rental units from a level of 3.2 per cent in the Northeast to 6.9 per cent in the South. However, in all instances, the regional averages were still appreciably under those that had prevailed in 1965. While removals from the existing housing stock have apparently also increased as starts have continued upward, the viability of the recent starts pace still remains to be fully tested. This is because an important factor in the relatively low level of vacancy rates thus far has been the widening gap between starts and completions of new units available for occupancy. Although completions have also advanced strongly, they have fallen increasingly short of the upward pace of starts as available building capacity and resource requirements have been extended further. In the case of single­ family units, which normally require a relatively brief com­ pletion period, completions in 1971 were about 160,000 units fewer than starts. For multifamily units, which—de­ pending on the size of the structure involved—may require up to a year or more for completion, the differential was well above 200,000 units. n 8 HOUSING STARTS exceed COMPLETIONS MILLIONS OF ONUS MULTIFAMILY H h i m 1968 1969 1970 1971 1969 1970 1971 1968 1969 1970 1971 ■ Census Bureau data for private units (under HUD contract for completions). “Multifamily” includes 2 or more units. Data for 1971, preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Ways to Moderate Fluctuations in the Construction of Housing Report of the Board of Governors of the Federal Reserve System—March 3,1972 Recently the staff of the Board of Gov­ for traditional dwellings. Also, statutory ernors completed an extensive study of and regulatory restraints on lending are short-term cycles in housing production, less stringent for mobile homes. of their relation to general credit condi­ There is no evidence that short-term tions and monetary policy, and of means fluctuations in traditional types of resi­ by which these fluctuations might be dential construction are moderating with moderated. The individual study papers the passage of time. One of the sharpest were submitted to the Congress last fall. postwar declines occurred from the first Since then, the Board has considered quarter of 1966 to the first quarter of what its recommendations in this area 1967, when residential construction ex­ should be. penditures fell by about one-fifth. In In order to provide the background that period, the Nation’s savings and needed for assessing public policy, this loan associations experienced a marked report on ways to moderate fluctuations decline in net deposit inflows. Another in the construction of housing begins sharp reduction in their deposit inflows with a brief review of the salient facts occurred in 1969. Housing activity during about the problem of short-run vari­ that year did not contract as much as ability in housing production. it had in 1966-67, however, because of the greater underlying strength of housing THE PROBLEM OF demand, and the large-scale intervention SHORT-RUN VARIABILITY by Federally-sponsored credit agencies IN HOUSING CONSTRUCTION to help stabilize the supply of mortgage Wide variations in the rate of homebuilding funds. have occurred throughout the postwar Instability in residential construction is period. These fluctuations have character­ not confined to the United States. In ized all major classes of permanent dwell­ Canada and the industrialized countries ing units: multifamily dwellings and of Western Europe, downturns in private single-family homes alike, housing units housing production have occurred re­ financed by Federally-backed mortgages, peatedly during periods of credit restraint as well as those that are conventionally in recent decades. There is evidence, financed. also, that instability in residential con­ Production of mobile homes, on the struction afflicts the socialized economies other hand, has been relatively stable. of Eastern Europe—where the allocation This category of home construction is of resources is determined through cen­ less responsive to variations in general tral planning. credit conditions. The terms of finance Thus, instability of housing construc­ and the sources of funds for mobile tion has been a problem practically homes differ considerably from those everywhere. No quick or easy solution 215 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

216 FEDERAL RESERVE BULLETIN □ MARCH 1972 is in sight. Wide-ranging, persistent, and from a variety of sources, including well-considered efforts will be needed to Federal deficit financing. The strongest limit the swings in housing construction competition, however, usually comes without compromising our national eco­ from the business sector. When retained nomic stabilization objectives. earnings of business firms rise less Relation to aggregate economic activity. than the planned increase in their invest­ Short-term swings in our Nation’s hous­ ments in fixed capital and inventories, ing production are related closely to they must depend more on external fluctuations in the pace of aggregate eco­ sources of finance. The share of total nomic activity. Housing has provided available funds absorbed by businesses a balance wheel for the rest of the then tends to rise, while the share avail­ economy—tending to boom during periods able for housing falls. of slack in the economy and to turn down The housing industry is not the only when activity in most other lines was economic sector that responds sensitively rising briskly. These variations in hous­ to changes in general credit conditions. ing production have helped to temper Repeatedly in recent years, State and local inflationary pressures in periods of ex­ governments have been subject to financial cess aggregate demand and to support constraints when interest rates have risen. economic activity during recessions, thus Numerous small business firms, too, have serving to even out fluctuations in total had difficulty coping with cyclical changes output and employment. in the cost and availability of credit. It The tendency for housing production appears, however, that variations in gen­ to vary inversely with general economic eral credit conditions have had a much activity is at times identified as a response larger effect on the rate of residential of residential construction to changes in construction than on other major economic monetary policy. There is some truth to activities. this. In the very short run, restrictive Sources of the problem. One basic rea­ monetary policies do result in reduced son for this special effect on the hous­ availability of credit and higher interest ing industry is the dependence of this rates, just as expansive monetary policies industry on nonbank thrift institutions produce a temporary easing in general for long-term mortgage funds. Over credit conditions. The experience of the past 15 years, savings and loan recent years indicates, however, that associations and mutual savings banks these effects of monetary policy on credit have supplied nearly two-thirds of the in­ markets are transitory. The more lasting crease in the Nation’s outstanding resi­ effects on the cost and availability of dential mortgage credit. These institu­ credit come from the demands for loan­ tions depend almost exclusively on con­ able funds, particularly as these demands sumer-type time and savings deposits are influenced by the expected rate of as a source of funds, and they make inflation. the bulk of these funds available for home Funds for housing typically are in financing. As a consequence, when de­ short supply when demands for credit posit inflows to these institutions shrink, from other sectors rise rapidly—as they did the aggregate supply of residential mort­ in 1966 and again in 1969. Competition gage credit from private lenders also faced by the housing industry for a limited declines. volume of loanable funds may stem Deposit inflows to savings and loan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT ON CONSTRUCTION OF HOUSING 217 associations and mutual savings banks tutions are ill equipped to cope with have become increasingly volatile over widely fluctuating market interest rates. the past two decades. In years when Moreover, this problem has been ag­ interest rates in the open market have gravated by the ceilings on rates of in­ risen, the flow of consumer savings has terest that depositary institutions may pay been diverted away from depositary , in­ to attract consumer savings. The legisla­ stitutions, which pay interest rates that tive extension of these ceiling rates in are relatively inflexible, and has moved 1966 to cover savings and loan associa­ instead towards market instruments. Con­ tions and mutual savings banks has re­ versely, in years when yields on market duced competition among financial in­ securities have fallen relative to those stitutions, and it may therefore have paid on deposits, inflows to the depositary spared some individual institutions from a institutions have risen. drain of funds to a nearby competitor. These swings in deposit flows have of But the ceilings have interfered with the late been on a massive scale. With ability of all depositary institutions to market interest rates rising rapidly, the compete effectively with market securities increase in total deposits at savings and in periods of rising yields. loan associations and mutual savings banks There are numerous legal and regula­ fell by more than half between 1967 and tory obstacles that discourage or prevent 1969. In 1970, short-term market interest lenders from acquiring residential mort­ rates fell substantially, and the net deposit gages, thereby contributing to the uneven inflow doubled—regaining its 1967 level flow of mortgage credit. Chief among these —and then more than doubled again in are the ceilings imposed on the interest 1971. Such alternations of feast and fam­ rate paid on conventional mortgages by ine are bound to create instability in State usury laws and on FHA-insured mortgage credit supplies and in home- and VA-guaranteed loans by Federal building. regulations. At times, these ceiling The asymmetry of the assets and liabili­ rates of interest have gotten so far out of ties of the nonbank financial intermediaries touch with market realities that mort­ needs to be carefully noted. These in­ gage funds—in certain regions of the coun­ termediaries provide highly liquid assets try or for certain classes of loans—have for individuals to hold—assets that are literally vanished. Such laws and regula­ close substitutes for short-term market tions were originally designed with the securities on which yields are highly purpose of providing borrowers with variable. But these intermediaries spe­ funds at reasonable rates of interest, but cialize in mortgage lending, and thus pile their effect has often been to limit or up assets with a long average life. Since to prevent the access of borrowers to the average yield on their earning assets mortgage credit. changes little in response to variations There are other laws and regulations in current market rates of interest, the non­ that also prevent funds from moving bank depositary institutions are in a poor freely into mortgages. Federally-char­ position to compete for consumers’ sav­ tered savings and loan associations, and ings, and to maintain their mortgage mutual savings banks in some States, face lending, when yields on market securities rather stringent geographical restrictions become more attractive. on lending. The terms on which national Thus, by their very nature, these insti­ banks may make funds available for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

218 FEDERAL RESERVE BULLETIN □ MARCH 1972 conventional real estate loans are limited ing activity in the postwar period has de­ by statute, and their total investment in clined whenever our Nation has failed to such assets is also restricted. Many adopt promptly the policies of restraint State-chartered commercial banks face needed to avert excess aggregate demand. statutory restrictions similar to those Improvements in the use of all of our applicable to national banks. And the instruments of stabilization policy are Federal Reserve Act discriminates against clearly needed. But avoidance of sharp mortgage loans at the discount window: fluctuations in interest rates and credit such loans are eligible as collateral for conditions will require heavier reliance member bank borrowing only at a penalty on fiscal tools, and less reliance upon rate of interest. monetary policy, to achieve our national These imperfections of financial markets economic stabilization objectives. Once are not the only source of instability in variations in general credit conditions the housing industry. Some categories are lessened, both the supply of mort­ of spending respond much more than gage credit and the rate of housing others to changes in interest rates. Varia­ construction will become more stable. tions in the cost of credit tend to lead In considering the proper scope and to particularly large changes in spending direction of public policy, it is important when the asset acquired is very durable, to recognize that complete elimination of when the purchase is postponable, when fluctuations in housing production is not there is heavy dependence on external a feasible objective. From time to time, financing, and when interest costs bulk excess aggregate demand will reemerge, large relative to the buyer’s total ex­ and then it will become necessary to curb penditure. For all these reasons, the de­ demand in order to reduce, if not prevent, mand for housing is highly sensitive to inflationary pressures. At such times, changes in interest rates. some curtailment in residential construc­ tion need not be against the national in­ THE COURSE FOR PUBLIC POLICY terest. During brief periods of excess Given the factors responsible for the demand, reduced output of highly dur­ sensitivity of housing to changes in gen­ able assets, such as houses, would eral credit conditions, public policy ac­ permit the achievement of restraint in tions on several fronts are needed to the use of real resources without much moderate fluctuations in residential build­ sacrifice of current standards of consump­ ing. Legal and regulatory obstacles to tion and, in the process, would con­ the flow of mortgage money need to be tribute to holding down inflation. Since removed or reduced. Ways need to be the stock of houses is very large, a mod­ devised for reducing the instability of erate decline in the rate of new production deposit flows to savings and loan as­ for several months or a year would have sociations and to mutual savings banks. negligible effects on the quantity and And some significant changes will be quality of the total housing available for required in the character of our Nation’s use by the public. economic stabilization policies. In the past, however, credit-induced The most important single contribution declines in housing construction have that could be made to stability of housing often gone beyond the point of tolerance, production would be to obtain better creating unnecessary hardships for con­ control over the forces of inflation. Hous­ struction workers, contractors, and those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT ON CONSTRUCTION OF HOUSING 219 employed in associated industries. These approach to solve the housing finance declines have also interfered with im­ problem. The main thrust of new initia­ provements in the efficiency of resource use tives should strike directly at the sources in residential construction—improvements of fluctuation in housing construction. that could lead to lower housing costs if Removal of legal and regulatory obsta­ fluctuations in the rate of housing produc­ cles to flows of mortgage credit. The Board tion were moderated. Economic policy, recommends that the Congress eliminate therefore, should seek to redress the all interest rate restrictions on FHA-inbalance of restraint during periods of ex­ sured and VA-guaranteed loans. Rates on cess aggregate demand—by imposing these loans then would reflect market con­ more restraint on categories of durable ditions and permit a larger flow of funds goods output other than housing and, in into residential construction than would the process, reducing the burden to be otherwise occur at a time of credit borne by the residential construction stringency. Legislation enacted in 1968, industry. putting responsibility for determining Expanding role of Federal housing agen­ ceiling rates in the Department of Hous­ cies. In recent years, a number of signifi­ ing and Urban Development and in the cant steps have been taken to reduce the Veterans Administration, was a step for­ severity of short-term declines in housing ward. More flexible adjustments in ceil­ construction. Federally-sponsored agen­ ing rates are now possible than was the cies concerned with housing credit or re­ case when these rates were established lated fields have focused more insistently by congressional statute. on the problem; new agencies and pro­ Under present arrangements, however, grams for dealing with the problem have decisions to change these ceiling rates been established by the Congress; and the can never be free from political con­ powers of existing Federal agencies have straints. There are likely to be recurring been expanded. periods, therefore, when mortgage dis­ The present network of Federally-spon­ counts rise again to levels that severely sored credit agencies has demonstrated limit or actually deny the access of bor­ its capability of contributing powerfully rowers to this type of credit. to bolstering the supply of mortgage Such troubles can be avoided by credit during periods of general credit abolishing the ceilings. Alternatively, the stringency. During 1969, these agencies Congress might instruct HUD and the VA supplied directly, or indirectly through to adopt a mechanical rule that ties the loans by the Federal home loan banks to ceiling rate to a market-determined in­ savings and loan associations, over 40 terest rate. per cent of the net funds borrowed to State governments should also be finance housing. In the absence of these encouraged to remove their usury ceil­ massive operations, a much more pre­ ings, or to raise them to levels at which cipitous decline in housing construction they would no longer block the flow of would have occurred in 1969. funds into mortgages. There is a growing Undoubtedly, additional improvements awareness of the damage that usury ceil­ could be made in Federal credit programs ings have done, as is evidenced by the to assist the housing industry when private fact that numerous States in recent years mortgage funds are in short supply. But have raised their usury ceilings—some of it would be unwise to rely entirely on this them only temporarily, however. Action Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

220 FEDERAL RESERVE BULLETIN □ MARCH 1972 by the Congress in dispensing with ceil­ investment in conventional mortgages by ing rates on Federally-backed mortgages State-chartered banks are similar to na­ would encourage State governments to tional banking laws and regulations. Here, take similar actions. too, action by the Congress in liberalizing Several changes in Federal banking the mortgage provisions of the national laws are needed to remove impediments banking laws would provide guidelines to investment in residential mortgages by that the States could follow. commercial banks. First, the Federal Especially stringent geographical re­ Reserve Act should be modified to permit strictions on mortgage lending by deposi­ the Federal Reserve Banks to lend to mem­ tary institutions are found in regulations ber banks on the basis of sound mort­ applying to conventional mortgage loans gage collateral at the regular discount rate. of Federal savings and loan associations. The Board has recommended this action Though liberalized about a year ago, on prior occasions. Second, quantitative these regulations still impose rather nar­ limits on acquisitions by national banks row limits on the geographical mobility of conventional, and some types of of mortgage funds. It is doubtful whether FHA-insured, real estate loans should be limits of this kind are needed to protect abolished. These loans presently may not the soundness of individual associations. exceed the capital stock and surplus of a In our judgment it would be helpful to drop bank, or 70 per cent of its time and savings these restrictions, so that funds of sav­ deposits, whichever is greater. Although ings and loan associations could be loaned mortgage acquisitions at present are prob­ out wherever the need seems greatest. ably not being limited significantly by this Such action might prompt States in provision, its retention seems unnecessary. which mutual savings banks operate to Third, the Board recommends rescinding reconsider geographical restrictions on the requirement that conventional real conventional mortgage lending by those estate loans of national banks may not institutions. exceed 90 per cent of the appraised value Elimination of these legal and regulatory of the property mortgaged, nor exceed 30 constraints on mortgage lending would years in maturity. Removal of the maxi­ augment the long-run supply of mortgage mum maturity provision would be essen­ funds, as well as lessen short-term fluc­ tial to investment by national banks in tuations in mortgage credit supplies. variable-rate mortgages with variable maturities, as discussed later in this report. IMPROVEMENTS IN THE FUNCTIONING Once these provisions were dropped, OF DEPOSITARY INSTITUTIONS investment by national banks in conven­ Let us next consider ways of improving tional mortgages would be governed the capability of depositary institutions principally by considerations of safety and to compete more effectively for con­ soundness, to be tested by bank examina­ sumer savings during periods of rising tions, as is the case with most other types market interest rates, and thereby to pro­ of loans. The Board believes, however, vide a more even flow of funds to the mort­ that it would be prudent to authorize gage market. the Comptroller of the Currency to estab­ The problem that nonbank financial lish safeguards through such regulations intermediaries face, as noted earlier, as may prove necessary. stems from their nature as specialized Many State banking laws applying to financial institutions that lend chiefly in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT ON CONSTRUCTION OF HOUSING 221 the mortgage market. These institutions However, since the average effective life would function better in a world of fluc­ of consumer loans is much shorter than tuating market interest rates if the average that of mortgages, the average yield on life of their earning assets were shor­ earning assets would respond better to tened. This objective could be accom­ changing market interest rates over a pe­ plished by diverting a substantial part of riod of several years. This would enhance their loanable funds to assets other than the ability of nonbank depositary institu­ residential mortgages. Such a solution, tions to increase their interest rates on however, could well affect adversely deposits at times when market yields were the long-run supply of residential mort­ rising and thus at least partially reduce the gage credit and thus raise the average cost tendency of consumer savings to shift to of mortgage borrowing. market instruments. There is no fully satisfactory solution Another step well worth considering to this dilemma. The Board believes, would be enabling all depositary institu­ nonetheless, that courses of action are tions to offer mortgages with variable in­ available that will improve the ability of terest rates and attendant safeguards, side nonbank thrift institutions to stabilize by side with the traditional fixed-rate their deposit flows and their mortgage mortgage, as a means of home financing. lending, while avoiding an undue reduc­ Depositary institutions holding variabletion in the long-run supply of residential rate mortgages would experience more mortgage funds. flexible average earnings rates. Since they In the near term, there are good pros­ could then change deposit interest rates in pects for reducing the asymmetry of the response to variations in yields on market assets and liabilities of nonbank inter­ securities, deposit inflows should be more mediaries by measures to encourage stable. Short-term fluctuations in mort­ lengthening in the average maturity of gage credit supplies would thereby be deposits and a reduction in deposit turn­ reduced, so that home buyers could rea­ over rates. Progress in this direction al­ sonably expect to find mortgage funds ready has been made in recent years, but available even during times of general further steps could be taken. For ex­ credit restriction. This greater cyclical ample, ceiling rates of interest on deposits stability of mortgage credit availability established by the supervisory authorities could be achieved, moreover, without could be modified to provide for greater affecting adversely the long-run supply of differentiation of accounts by maturity mortgage funds. classes, and to permit higher interest rates There are, of course, some problems to be paid on longer-term deposits. The associated with rate provisions that would Board intends to pursue these matters with involve the absorption by borrowers of the other regulatory agencies. some of the risks of interest rate fluctua­ Some benefits also can be gained by tions. This would be a complicating ele­ encouraging the specialized mortgage ment in the budgeting and financial plan­ lending institutions to put a modest pro­ ning of a homeowner carrying a mortgage. portion of their earning assets into con­ It would be wrong, however, to assume sumer loans—perhaps a maximum of 10 that he has no capacity at all to absorb such per cent. Over the long run, this may tend risks. Variation in interest rates are to a to reduce somewhat the flow of funds from significant degree attributable to changes these institutions to the mortgage market. in the rate of inflation. Increases in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

222 FEDERAL RESERVE BULLETIN □ MARCH 1972 interest rate on a variable-rate mortgage, required to accommodate changes in out­ consequently, would generally be accom­ lays for debt service. panied by a rise in the average borrower’s The Federal Government could help income and his debt service capacity. And, prepare the way for use of variable-rate of course, there would be times when bor­ mortgages as an instrument in home rowers would enjoy a decline in their financing. Thus, HUD and the VA might mortgage interest rate, since a variable- authorize variable rates on FHA-insured rate mortgage contract would need to pro­ and VA-guaranteed mortgage loans, and vide for reductions in the contract rate the Federal National Mortgage Associa­ when market yields moved down, as well tion and Federal Home Loan Mortgage as for increases when market yields rose. Corporation could include such mort­ In negotiations over this kind of rate gages in their secondary market opera­ provision, professional lenders would tions. Also, assistance might be given to have significant bargaining advantages the community of mortgage lenders in over relatively unsophisticated home­ developing a standard contract for owner borrowers. If such advantages were variable-rate mortgages, and to the States exploited, an undue share of the burden in developing model legislation to provide of interest rate adjustment could be shifted mortgage borrowers with adequate safe­ to homeowners. Accordingly, variable- guards against possible abuses by lenders. rate mortgages should have protective It should be emphasized that the proper features to safeguard the interests of role of variable-rate mortgages is addi­ borrowers. tional and complementary to the tradi­ For example, it would be wise for public tional fixed-rate mortgage contract. Bor­ policy to limit the degree to which any rowers should have the option of choosing individual borrower is subjected to changes freely between these instruments. Unless in his mortgage interest rate. This could a potential borrower expected interest be done by designing a mortgage instru­ rates to decline, he would usually prefer ment on which the possible fluctuation in to finance his home purchase with a fixedinterest rates is restricted to a moderate rate mortgage—thereby avoiding the un­ range. Furthermore, lenders could be re­ certainty inherent in a variable interest quired to provide prospective borrowers rate. In view of this normal preference of with data showing the differences in costs borrowers, lenders would probably need that could result over the life of the con­ to make the initial interest rate and other tract under alternative assumptions as to contract terms more attractive than those interest rate movements. Also, the fixed on a fixed-rate mortgage. monthly payment form of the variable- If promptly implemented, it would rate mortgage would need to be given par­ probably still take a decade or longer ticular encouragement. In such a mortgage for variable-rate mortgages to reach a siza­ contract, the variation in interest rates ble fraction of the portfolios of the under most circumstances would take the Nation’s depositary institutions. In time, form of a lengthening or shortening of the however, this financial innovation might term to maturity rather than a change in be of substantial help in moderating the monthly payment. This would be more swings in the availability of mortgage suitable for borrowers than the variable credit and in residential construction. monthly payment form, since adjustments Steps discussed in this section to in other expenditures would then not be strengthen our depositary institutions, if Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT ON CONSTRUCTION OF HOUSING 223 implemented, should speed the day when improving the use of fiscal policies, so ceiling rates of interest on consumer time that lesser reliance would need to be and savings deposits would no longer be placed on changes in credit conditions to needed. Removal of the ceilings would stabilize aggregate economic activity. permit savers to be rewarded more fully; Indeed, as students of the housing problem it would increase efficiency of financial have long recognized, increased reliance markets and it would enable each de­ on fiscal policies to stabilize aggregate positary institution to compete with mar­ economic activity has a permanent role to ket securities to the maximum extent per­ play in any well-conceived program to mitted by its own earnings position. lessen the instability of housing construc­ Although it would be wise to leave tion. standby authority in the hands of the regu­ Such a course has a number of related latory agencies to impose interest rate advantages. If we succeed in establishing ceilings on consumer time and savings a financial environment conducive to less deposits in the event of unforeseen con­ volatile flows of mortgage credit, other tingencies, the Board believes that it is sectors that are sensitive to fluctuations time to begin planning for gradual with­ in credit market conditions will also bene­ drawal of ceiling rates as an instrument of fit. State and local governments, for ex­ financial regulation. The Board again ample, will not be confronted with such recommends, therefore, that the Congress pronounced variations in financing costs, make permanent the authority—which was and smaller business firms will experi­ granted to the regulatory authorities in the ence less difficulty in securing funds when fall of 1966 and extended since then on business is booming. Furthermore, greater several occasions—to differentiate be­ stability in residential construction will tween kinds of deposits for purposes of be achieved without sacrificing the broader deposit rate regulation and to suspend in­ objectives of stability in aggregate em­ terest rate maxima when it is judged ployment, production, and prices. By appropriate to do so. It would also be resorting to a more flexible use of fiscal constructive if the Congress saw fit to in­ tools, sectors of the economy in which dicate a desire to have the regulatory spending is influenced relatively little by authorities formulate, and begin imple­ monetary policies could thus be made to mentation of, a long-range plan for step- bear their share of restraint during pe­ by-step removal of effective ceilings. riods of excess demand. A variety of fiscal tools could be used IMPROVEMENTS IN THE USE OF to stimulate or restrict spending in one or FISCAL POLICY more sectors other than housing. How­ Some years will pass before the above ever, suggestions for flexibly adminis­ recommendations for reform of the de­ tered fiscal policies previously set forth positary institutions and for the removal by academic economists and others have of legal and regulatory barriers to mort­ not been viewed by the Congress with gage fund flows can have their full bene­ much enthusiasm. The Congress has been ficial effects in stabilizing housing con­ understandably reluctant to take steps that struction. In the short run, the principal might interfere with efforts to rationalize hope for lessening the variability of home- tax policy, or result in manipulating pri­ building lies in gaining a fuller measure of vate spending incentives capriciously, or control over inflation—and particularly in give the Executive Branch excessive con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

224 FEDERAL RESERVE BULLETIN □ MARCH 1972 trol over Federal expenditures or tax rates. tend to be reduced, fluctuations in market It may be possible, however, to overcome interest rates would tend to diminish, these objections with a systematic ap­ and these developments could contribute proach that minimizes the threat of under­ to stabilizing the flow of mortgage credit mining either tax policy or budget policy. and housing construction. A promising approach is to use fiscal A flexible use of the investment tax policy to control changes in the rate of credit would require orderly procedures business investment. Outlays by business for adjustment of the rate of credit. Ex­ firms on machinery and equipment are perience suggests that, if timely adjust­ large and cyclically volatile. Clearly, ments are to be made, the Congress would greater stability in such purchases would need to assign responsibility to another foster a more steady growth rate of aggre­ body for determining when a change in gate production and employment. These the rate of tax credit should be effected. expenditures, furthermore, are relatively However, this could be accomplished in insensitive to monetary policy, particu­ ways that protected and preserved the larly in the short run. During periods of ultimate responsibility of the Congress to credit restraint, the business sector has determine tax policy and that avoided repeatedly drawn on financial and real subjecting the business community to resources that would otherwise have capricious changes in taxes. probably gone into the housing industry. For example, the Congress might grant One instrument of tax policy, the in­ to the President authority to vary the in­ vestment tax credit, has in recent years vestment tax credit within prescribed been employed to influence business in­ limits—say, from zero to 10 or 15 per vestment decisions. By now the invest­ cent. Once a change in the rate of tax ment tax credit is well understood by the credit was announced by the Executive, business community, by the Congress, it would go into effect 60 days hence, and by the general public. Its effects on retroactive to the date of the announce­ the rate of business fixed investment have ment, unless the Senate or the House of been demonstrated in actual experience. Representatives disapproved of the rate The investment tax credit was originally change in the intervening period. The thought of as a device for providing addi­ Congress might, if it so chose, stipulate tional stimulus to business capital expen­ that the President could act only after a ditures over the long run. However, suc­ public recommendation had been made cessive congressional measures dealing by an advisory body, such as the Council with this tax credit since 1966 have sug­ of Economic Advisers. gested that the credit might also be used Under such a system, timely adjust­ flexibly to even out the behavior of busi­ ments of the investment tax credit could ness investment spending over the course be achieved, but there would also be of the business cycle. Thus, the magni­ ample time for careful deliberation by the tude of the tax credit could be lowered Congress to determine whether the pro­ when excess aggregate demand threatened posed fiscal action was in the national to generate inflationary pressures, or it interest. would be raised when the economy was in need of stimulus. If the tax credit were CONCLUDING COMMENTS adjusted in this fashion, variations in busi­ The Board recommends that priority con­ ness external financing demands would sideration be given to establishment of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

REPORT ON CONSTRUCTION OF HOUSING 225 machinery for a variable investment tax These recent developments do not im­ credit. This is the most important single ply that the cyclical problems of housing contribution that could be made to easing and housing finance are behind us. On the the plight of the housing industry in re­ contrary, they illustrate that the supply of curring periods of credit restriction. The mortgage credit and the rate of housing Board also suggests consideration of production are still highly sensitive to actions to enable the use of variable-rate changes in general credit conditions. mortgages to finance residential struc­ This is a good time for the Congress to tures. consider carefully the most appropriate Other recommendations set forth in steps to help stabilize supplies of mortgage this report, though less significant in­ credit. In the course of its deliberations, dividually, would in the aggregate also the Congress will no doubt wish to obtain serve to reduce materially the instability the judgments of a number of governmen­ of credit flows to the housing industry. tal agencies, of consumer groups, of rep­ At present, the residential construction resentatives of industry and finance, and industry is not suffering from any want of of recognized scholars in the housing credit. Housing activity has been rising field. rapidly for over a year and a half, with The Board would urge the Congress to starts reaching a new peak in January of take the opportunity afforded by present this year. Even now, mortgage interest conditions in the mortgage credit and rates are falling, while inflows of time housing fields to move forward and put and savings deposits at commercial banks in place the machinery that will be needed and nonbank thrift institutions continue at for moderating fluctuations in residential unusually high levels. construction in the years ahead. □ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Staff Economic Studies The research staffs of the Board of Gover­ In all cases the analyses and conclu­ nors of the Federal Reserve System and of sions set forth are those of the authors the Federal Reserve Banks undertake and do not necessarily indicate concur­ studies that cover a wide range of eco­ rence by the Board of Governors, by the nomic and financial subjects, and other Federal Reserve Banks, or by the mem­ staff members prepare papers related to bers of their staffs. such subjects. In some instances the Fed­ Single copies of the full text of each of eral Reserve System finances similar the studies or papers summarized in the studies by members of the academic pro­ B u lletin are available in mimeographed fession. form. The list of Federal Reserve Board From time to time the results of studies publications at the back of each B u lletin that are of general interest to the eco­ includes a separate section entitled “Staff nomics profession and to others are sum­ Economic Studies” that enumerates the marized—or they may be printed in full— studies for which copies are currently in this section of the B u lletin . available in that form. Study Summary INTERNATIONAL MONEY MARKETS AND FLEXIBLE EXCHANGE RATES Stanley W. Black—Staff, Board of Governors Prepared as a research paper in 1971 and updated in early 1972 In large part, the international monetary But in a regime of pegged exchange crises of the 1960’s and 1970’s stem rates, the loss of reserves implied by the from a combination of independent na­ flow of funds out of countries with low tional monetary policies, pegged ex­ interest rates instills doubts about the change rates, and ever-broadening inter­ ability of the authorities to maintain the national money markets—symbolized by pegged rate. The famous “one-way bet” the rise of the Euro-dollar market. This on devaluation replaces dispersed ex­ combination is unstable in principle: pectations with the politican’s nightmare: As divergent monetary policies seek to a bear attack by speculators and business­ maintain different short-term interest rates men seeking to avoid the effects of de­ in different countries, short-term arbitrage valuation. There are, broadly, three pos­ funds flow toward countries with high sible resolutions of this kind of instability: interest rates. Under flexible exchange (1) greater international coordination of rates, the operations of speculators with monetary policies, tantamount to aban­ diverse views on expected future spot donment of independent national monetary exchange rates tend to be offsetting. policies; (2) flexible exchange rates, in­ 226 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

eluding such variations as wider bands short-term claims and liabilities of the and the crawling peg; and (3) controls United States vis-a-vis the United King­ on international money markets, equi­ dom for the period January 1936 to valent to restrictions on short-term capital September 1939. This period was chosen movements. This paper offers new evi­ because the dollar-sterling exchange rate dence on the workability of flexible ex­ was flexible and because a unique body change rates. of data is available on forward market From the portfolio behavior of banks, commitments. Equations are also pre­ nonbank institutions, foreigners, and the sented, for the first time, relating bank and monetary authority, a theoretical model nonbank positions in the forward market of equilibrium in money markets and ex­ to spot foreign exchange holdings and change markets is developed and analyzed trade commitments. The results show in terms of stability and comparative that forward covering was widely prac­ statics. The effects of government in­ ticed. Next, the paper presents equations tervention in spot and forward exchange for spot and forward commitments in­ markets are compared. Intervention in the cluding dummy variables for expected forward market is shown to be more future spot excharige rates based on the effective when the spot exchange rate is rational expectations hypothesis. These flexible than when it is pegged. A new variables allow tests of hypotheses on the proof is provided for the proposition that stabilizing or destabilizing nature of spec­ monetary policy is more powerful under ulative activity and on the division of flexible exchange rates than under pegged that activity between spot and for­ rates. A dynamic theory of the relation­ ward markets. The conclusion is that, ship between current and expected future on balance, the flexible exchange markets spot exchange rates and forward exchange of the late 1930’s were not destabilizing. rates is developed by an extension of In most cases they facilitated the response Muth’s model of rational expectations. of participants in the markets to the de­ Empirical equations are estimated for stabilizing political events of the period. 227 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations This 20th joint interim report reflects the This report, prepared by Charles A. Treasury-Federal Reserve policy of mak­ Coombs, Senior Vice President in charge ing available additional information on of the Foreign Department of the Federal foreign exchange operations from time to Reserve Bank of New York, and Special time. The Federal Reserve Bank of New Manager, System Open Market Account, York acts as agent for both the Treasury covers the period October 1971 to March and the Federal Open Market Committee 1972. Previous reports were published of the Federal Reserve System in the con­ semiannually in the B u lletin s of each duct of foreign exchange operations. year beginning with September 1962. On Sunday, August 15, President Nixon to maintain the rate for the yen by con­ announced a major new program of tinuing to intervene at the ceiling but was domestic and international economic swamped by an inflow of dollars, which measures. With respect to international by the month-end had swollen official payments, the President introduced a 10 reserves by $4.4 billion. On August 28, per cent temporary surcharge on dutiable when official intervention at the ceiling imports into the United States and sus­ for the yen was suspended, the yen im­ pended the convertibility of the dollar mediately rose by nearly 5 per cent, and into gold and other reserve assets. would have risen even more sharply in The major European governments kept subsequent weeks if the Bank of Japan their exchange markets closed all of the had not repeatedly intervened to restrain following week, as they sought to devel­ the upward trend. op some joint policy response to the U.S. Over the following 3% months the spot measures. These negotiating efforts failed, exchange rates of the major trading cur­ and on Monday, August 23, the Euro­ rencies moved to widening premiums pean governments reopened their ex­ over their old parities, as shown in the change markets on an uncoordinated table below: basis. While each government continued Premium over parity to adhere to its pre-August 15 parity, all Currency Sept. 30 Nov. 30 Dec. 17 but the French Government suspended Belgian franc: Commercial ................. 6.4 8.1 9.8 their commitments to defend the previous Financial .............................. 6.4 8.1 9.8 upper limits of their exchange rates. Such British pound.................... 3.5 3.9 5.4 Canadian dollar............... 7.1 7.7 8.5 continuing intervention by the Bank of French franc: Commercial ................. .5 .8 1.8 France was confined, however, to a seg­ Financial....................... 3.5 2.4 5.8 German mark.................... 10.4 10.6 12.4 regated market for commercial and official Italian lira.......................... 2.1 2.3 4.1 Japanese yen..................... 7.5 10.1 12.3 transactions, while all other transactions Netherlands guilder......... 7.5 9.3 10.5 Swiss franc....................... 3.3 3.3 5.5 were diverted to a financial franc market that was allowed to find its own level. The exchange rate structure thus emerg­ The Japanese Government initially sought ing after August 15 was, in most instances, 228 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

the product of controlled rather than free efficiently functioning forward markets. floating. Many central banks continued to Moreover, mounting uncertainties and intervene on an ad hoc basis, while the anxieties arising from the proliferation market was further strongly influenced by of exchange controls and fears of potential a proliferation of new exchange con­ trade restrictions and retaliation had severe trols, the U.S. import surcharge, and and far-reaching repercussions on business sharply conflicting official appraisals of an confidence in the major trading countries, appropriate realignment of parities. Par­ particularly in those countries where ex­ ticularly noticeable was market specula­ ports contribute heavily to gross national tion on whether the U.S. Government product. As noted by Chairman Burns: would participate in a rate realignment in . . . the dangers were growing of a recession in the form of an increase in the U.S. official world economic activity, of increasing recourse to restrictions on international transactions, of a gold price. As market expectations clus­ division of the world economy into restrictive tered initially around a 5 per cent increase blocs, and of serious political frictions among and, after the November Group of Ten friendly nations. Prompt resolution of the crisis meeting in Rome on a figure closer to 10 was clearly necessary, and intensive international discussions therefore got under way in the autumn per cent, foreign currency rates tended to of 1971. move up to levels compatible with such These international discussions culmi­ projected gold parity adjustments. nated on December 18, 1971, in the Smithsonian Agreement of the Group of TABLE 1 Ten countries, which specified an ex­ FEDERAL RESERVE RECIPROCAL CURRENCY ARRANGEMENTS change rate realignment based on an in­ In millions of dollars crease in the $35 U.S. official gold price Institution Amount of facility, by 8.57 per cent to $38 per ounce. This Mar. 13, 1972 devaluation of the dollar was accom­ Austrian National Bank ........................... 200 National Bank of Belgium ....................... 600 panied by relatively smaller devaluations Bank of Canada ......................................... 1,000 National Bank of Denmark ..................... 200 of the Swiss franc, the lira, and the Bank of England ....................................... 2,000 Swedish krona against gold, thus slightly Bank of France............................................ 1,000 German Federal Bank .............................. 1,000 reducing their effective appreciation Bank of Italy .............................................. 1,250 against the U.S. dollar. The German Bank of Japan ............................................ 1,000 Bank of Mexico ......................................... 130 mark, the Japanese yen, the Dutch Netherlands Bank....................................... 300 guilder, and the Belgian franc were re­ Bank of Norway ......................................... 200 Bank of Sweden ......................................... 250 valued upward by differing amounts, Swiss National Bank................................. 1,000 thereby further increasing the apprecia­ Bank for International Settlements: Swiss francs/dollars .............................. 600 tion of these currencies against the dollar. Other authorized European currencies/ dollars .................................................. 1,000 The pound sterling and the French franc remained at their previous parities, Total.................................................. 11,730 producing an appreciation of these cur­ More generally, the exchange market rencies of 8.57 per cent against the atmosphere progressively deteriorated dollar. The Canadian dollar continued to from mid-August until the Group of Ten float. In the interim prior to congressional meeting in Rome revived hope of an early and parliamentary approval, the new pari­ alignment of new parities. Serious operat­ ties were put into effect through the ing problems were posed for market notification to the International Monetary participants during the floating rate period, Fund (IMF) of “central” rates. Finally, more particularly for those dependent upon it was agreed that the trading bands sur- 229 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

230 FEDERAL RESERVE BULLETIN □ MARCH 1972 rounding these new central rates would close to or hard against their official be widened to 4.5 per cent. ceilings. The central banks concerned intervened decisively and without hesi­ Percentage appreciation of parity tation, however, and this demonstration Currency against U.S. dollar had a reassuring effect. In early March, Belgian franc......................................................... 11.57 British pound......................................................... 8.57 expeditious congressional action on a French franc.......................................................... 8.57 “clean” gold price bill removed another German mark......................................................... 13.58 Italian lira............................................................... 7.48 source of uncertainty that had been breed­ Japanese yen ......................................................... 16.88 Netherlands guilder ............................................. 11.57 ing unsettling market rumors. Simul­ Swedish krona ...................................................... 7.49 taneously, the German Government took Swiss franc............................................................ 6.36 action to control borrowing abroad by Announcement of the Smithsonian German industrial firms, which had been Agreement was greeted with satisfaction a major source of buying pressure on the and relief by the exchange markets, rates mark over the last 3 years, while the for a number of major currencies settled Japanese Government reinstated controls at or close to their new floor levels, and on speculative buying of the yen. Finally, sizable reflows of funds to the United the interest rate gap between Europe and States developed through the year-end. the United States began to be squeezed Following the turn of the year, however, out from both sides, as the U.S. Treasury market optimism shifted to an anxious bill rate rose significantly while discount even skeptical mood as traders began rate cuts in Germany, Belgium, and the to ponder the long negotiating path to a Netherlands were announced and reces­ restructured international financial sys­ sionary tendencies continued in Europe. tem. Market concern focused particularly Nevertheless, in early March the ex­ on the risk that certain foreign central change markets remained nervous, focus­ banks might suddenly withdraw from their ing on the many complex issues still to be Smithsonian commitments to defend their resolved while awaiting positive indica­ currencies at the new upper limits, and tions of basic improvement in the U.S. successive waves of speculation in Jan­ payments position. When such evidence uary and February drove the mark, the of an improving trend materializes, the guilder, the Belgian franc, and the yen recovery of the dollar on the international 1 I CENTRAL BANK DISCOUNT RATES: January 1971 to March 1972 PER CENT UNITED STATES UNITED KINGDOM GERMANY NETHERLANDS BELGIUM n p , n ___________ H iii im ■ i i ____________________i___1 _______1____ .........-i --- 1971 1972 1971 1972 1971 1972 1971 1972 1971 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 231 exchanges should be accelerated by a prior to the year-end, $35 million of its reversal of the enormous foreign currency $750 million equivalent swap indebted­ positions now outstanding. ness to the Bank of England; the re­ Starting in early October 1971 the maining $715 million equivalent of this Federal Reserve from time to time pur­ sterling debt was still outstanding on chased modest amounts of Belgian francs March 13. Thus, including the continuing in the market (both spot and forward). $1,600 million equivalent of commitments These funds together with other franc in Swiss francs, outstanding Federal Re­ balances acquired through direct pur­ serve swap drawings totaled $2,855 chases from the National Bank of Belgium million as of the date of this report. and the U.S. Treasury, were used to On March 3 the U.S. Treasury re­ liquidate a total of $145 million equiva­ deemed $76.5 million of a maturing lent of earlier swap drawings on the $153.0 million equivalent German-mark- Belgian central bank (Table 2). Swap denominated note (Table 4); the ma­ commitments to the National Bank were turity of the residual $76.5 million thereby brought down to $455 million as equivalent of the security was extended for of December 21, while an additional a further 4 months. $35 million in Belgian francs is owed to the Bank for International Settlements STERLING (BIS). This total of $490 million equiva­ Sterling remained strong throughout the lent remains outstanding as of March 13, first half of 1971, and the spot rate held 1972. close to the ceiling of $2.42. Britain’s On November 12, the Federal Re­ balance of payments on current account serve, using marks held in balances, registered over that period a surplus of also made a $10 million paydown on its about $850 million, and the succession swap drawings on the German Federal of monthly trade surpluses had a buoyant Bank, reducing those commitments to $50 effect on market expectations. This strong million equivalent, where they remain. payments performance reflected, in part, Finally, the System took advantage of the sluggishness of the domestic economy flows out of sterling in late December in which unemployment was rising and to buy pounds in the market and repay, output was stagnant. Since prices and PER CENT FRANCE ITALY SWITZERLAND JAPAN CANADA — ------- L P l_ J _ ... ..........1 i ..... 1 I i 1971 1972 1971 1972 1971 1972 1971 1972 1971 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

232 FEDERAL RESERVE BULLETIN □ MARCH 1972 TABLE 2 FEDERAL RESERVE SYSTEM ACTIVITY UNDER ITS RECIPROCAL SWAP LINES In millions of dollars equivalent________________________________________________________ System Drawings, or repayments (-) System swap swap drawings, 1971 1972 drawings, Transactions with— Jan. 1, • Mar. 13, 1971 Jan. 1- 1972 I II III IV Mar. 13 f 335.0 125.0 260.0 National Bank of Belgium............... 210.0 -1-125.0 -205.0 -145.0 = } 455.0 Bank of England................................ 750.0 -35.0 715.0 German Federal Bank....................... ---- ---- 60.0 ---- -10.0 ---- 50.0 Netherlands Bank............................. 300.0 -f 130.0 120.0 1-300.0 -250.0 ------ = } Swiss National Bank........................ 300.0 .<f 150.0 250.0 750.0 — \ 1,000.0 V. -450.0 -----J Bank for International Settlements (Swiss francs)................................ __ 600.0 ------ 600.0 Bank for International Settlements (Belgian francs) 35.0 35.0 Total........................................ 810.0 ■ 1 r - 8 6 7 1 5 5 . . 0 0 -4 5 5 5 5 5 . . 0 0 :2,395.0 -190.0 - - - - - - - -/ \ 2,855.0 wages continued to rise at a rapid pace, through special arrangements. With this however, the British authorities main­ improved liquidity position and further tained a firm grip on monetary and fiscal reserve gains in July, the United Kingdom policy—in particular, keeping domestic was able to make another repayment—of liquidity conditions tight—while moving $614 million—to the IMF in early August, cautiously to stimulate the economy. thereby reducing its commitments under Interest rates in the United Kingdom the 1969 standby arrangement with the remained relatively high and attracted a Fund to $1 billion equivalent. heavy influx of short-term funds. As Trading in sterling had remained or­ both commercial and capital demand con­ derly in July, but early in August the verged on the market, the Bank of pound was caught up in the general wave England was a buyer of dollars on a mas­ of speculative demand that hit all major sive scale throughout the first half of foreign currencies, and the Bank of Eng­ the year. By the end of June the U.K. land had to absorb further heavy offerings authorities had repaid $1.7 billion in in­ of dollars. To provide cover for these ternational credits, added $0.5 billion to inflows, on August 13 the Federal Re­ official reserves exclusive of the special serve activated the swap line with the drawing rights (SDR’s) allocation, and Bank of England, drawing $750 million transferred $1.7 billion to later months equivalent of sterling. TABLE 3 DRAWINGS AND REPAYMENTS ON FEDERAL RESERVE SYSTEM BY ITS SWAP PARTNERS In millions of dollars Drawings, or repayments (-) Drawings Drawings Banks drawing on System on System, 1971 on System, Jan. 1, Dec. 31, 1971 I II III IV 1971 Bank for International Settlements (against German marks)................. __/+21.0 +6.0 -----+3.0 \ \ - 21.0 6.0 ------ -3.0 / Total. __ r+2i.o +6.0 ------ +3.0 \ \ -21.0 - 6.0 ------3.0 / Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 233 In the week following President Nixon’s ment, Government-guaranteed, and local statement of August 15, the British authority securities maturing before Octo­ authorities closed the London exchange ber 1, 1976. Finally, permission for the market by withdrawing the banks’ author­ banks to swap foreign currency deposits ity to deal in foreign exchange. On Mon­ into sterling for lending to residents was day, August 23, the London market was withdrawn. After these measures were reopened with the $2.42 upper limit being announced, the sterling rate fell sharply suspended temporarily, although the par­ to around $2.45^, about 2.3 per cent ity of the pound and the lower limit re­ above par. On the following Thursday, mained unchanged. On subsequent days, September 2, the Bank of England with trading gradually recovering, the reduced its discount rate from 6 per cent sterling rate moved to as high as $2.48%, to 5 per cent. Sterling subsequently a premium of 3.4 per cent over par. steadied, and the spot rate fluctuated Following the floating of the Japanese around $2.46 until mid-September when, yen, the British authorities feared a re­ with the approach of the IMF annual newed speculative influx to sterling. Con­ meeting, it began to rise along with other sequently, on August 27 the Bank of major European currencies. For the third England announced new measures to quarter as a whole, Britain’s currentdeter hot money inflows. These included account position had remained very a prohibition of interest payments by strong, with a surplus of nearly $825 mil­ banks in the United Kingdom on in­ lion. Reserves rose by $1,394 million in creases in sterling balances held by non- the third quarter, reflecting not only sterling-area depositors and a complete ban heavy new inflows but also $398 million on additional nonresident deposits with of receipts earlier in the year that had other financial institutions and local au­ been deferred under special arrangements. thorities. Nonresidents were also pro­ The upswing in the sterling rate con­ hibited from purchasing additional sterling tinued into early October, when in active certificates of deposit as well as Govern­ trading the spot rate rose above $2.49. TABLE 4 U.S. TREASURY SECURITIES, FOREIGN CURRENCY SERIES In millions of dollars equivalent Issues,or redemptions (—) Outstanding, Outstanding, Issued to— Jan. 1, 1971 1972 Mar. 13, 1\ y07 111 19721 Jan. 1- I II III IV Mar. 13 German Federal Bank 539.6 ------ ------ ----- ------ -76.5 535.5 German banks............ 135.5 153.0 Swiss National Bank.. 540.6 ^ 249.7 831.7 333.0 ------ 1,216.4 2-790.5 = } Bank for International Settlements3 ......... 150.0 -157.5 — ---- 166.7 { = -150.0 = } ---- Total ................. 1,365.7 \ /24 - 9 -- . - 7 -9 9 4 8 0 9 . . 5 3 3 - 3 - 3 - . - 0 ------ -76.5 J 2,071.6 *For more realistic valuation, on Dec. 31, 1971, the U.S. Treasury provisionally valued its foreign currency obligations to reflect market exchange rates as of that day. Data in this column conform with this new valuation except for the securities that have been re­ newed so far in 1972, where the relevant market rate at the time of each renewal was used. 2Denominated in Swiss francs. 3Transactions related to activation by the Swiss National Bank of the revaluation clause covering all outstanding Swiss-franc-de­ nominated securities of the U.S. Treasury at the time of the Swiss franc’s revaluation in May 1971. Note.—Unless otherwise noted, discrepancies in totals result from minor valuation adjustments and from rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

234 FEDERAL RESERVE BULLETIN □ MARCH 1972 On October 6 the British authorities company demand to meet tax and royalty announced a further tightening of the payments and as Euro-dollar yields de­ exchange controls introduced at the end clined steeply while domestic money mar­ of August. The earlier ban on additions ket rates remained relatively firm. British to the holdings by nonsterling-area resi­ official reserves rose by $197 million in dents of specified securities was extended October. to all such securities, irrespective of The underlying demand for sterling maturity, as well as to sterling accep­ continued generally strong through midtances, commercial bills, and promissory November. Following the introduction on notes. After a brief dip in response to November 18 of the Reuss-Javits bill these steps, sterling rose again on oil to empower the President to raise the official dollar price of gold by up to 10 CHANGES IN EXCHANGE RATES AND 2A per cent and the announcement that the OFFICIAL TRANSACTIONS Group of Ten would meet in Rome on BILLIONS OF DOLLARS PER CENT November 30 and December 1, demand for sterling swelled still further. With the Bank of England holding the spot rate just above $2.49 through the end of the month, British reserves rose by $362 million in November. On Wednesday, December 1, when reports from Rome indicated definite progress in the Group of Ten discussions, a new rush into sterling and other foreign currencies developed. With pressure mounting not only in the spot market but also in the forward market, where 1-month sterling reached a premium of almost 8 per cent per annum, the Bank of England allowed the spot sterling rate to move up and it crossed the $2.50 level on December 7. With the approach of the December 17-18 meeting of the Group of Ten in Washington, sterling was bid up even further, to the $2.52 level, and it surged to $2.53% as the meeting began on Friday, December 17. Dashed lines are central rates except middle rate for the United Following the agreement reached in Kingdom. Movements in exchange rates are measured as percentage Washington on December 18, the British deviations of weekly averages of New York noon offered rates from the official parities at the beginning of 1971. Changes in Government announced that there would reserves are computed from the figures shown in the IMF’s be no change in sterling’s own gold International Financial Statistics. Starting with December 1971 the relevant figures, expressed in SDR’s, were calculated parity. The middle rate for the pound on the basis of the new central rates (rather than, as formerly, on the basis of official parities) and that month’s reserve would now be $2.6057, which represented changes therefore reflect such valuation adjustments in addi­ an 8.57 per cent appreciation of sterling tion to actual movements in reserve assets. ♦Upper and lower intervention limits established in Decem­ relative to the dollar, corresponding to ber 1971. tNew exchange parity. the proposed devaluation of the dollar Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 235 against gold. The Bank of England’s had risen toward, or even above, their official buying and selling rates were set central rates. Under these conditions, at $2.5471 and $2.6643, respectively, a the market came to view sterling as rela­ band of 4.5 per cent around the middle tively underpriced, and the possibility rate. At the same time the authorities that the European Community (EC) revoked the stiff exchange control regula­ countries might narrow the margin of tions they had announced on August 27 and fluctuation between their currencies— October 6 to discourage inflows of non­ and that sterling might be associated in resident funds. such a move—served to strengthen The London exchange market was offi­ market sentiment further. cially closed on Monday, December 20, A wave of buying developed in midwith banks in the United Kingdom barred January and, over the course of just a few from dealing in foreign currency. After days, the spot rate jumped by 4 cents to moving to $2.57 in the very thin trading reach more than $2.59. The market then that prevailed in New York that day, turned generally quieter and the sterling sterling eased when the London market rate fluctuated between $2.58 and $2.59 reopened, holding around $2.55 Vi or some through the end of January. There was a % cent above the new floor. The uneasy firm undertone, however, reflecting both balance in the market was finally tipped the seasonal strength for the pound and a few days later as some speculative the decline in Euro-dollar rates relative positions began to be unwound and year- to money market rates in London. In end adjustments were made. With the early February, sterling advanced again, pace of trading quickening substantially, moving above its middle rate. On the spot rate fell close to the floor in late February 14 the market reacted to the December. Taking advantage of this de­ growing threat to the British economy velopment, the Federal Reserve acquired of the extended coal miners’ strike by sterling in the New York market and marking sterling back down to just above repaid, prior to the year-end, $35 million $2.59, but even this dip proved brief as of its $750 million equivalent swap in­ sterling recovered in the general advance debtedness to the Bank of England. of European currencies that occurred The outflow of funds from the United later that week. Following the settlement Kingdom quickly dried up, however, of the coal miners’ strike, sterling held after the year-end adjustments were com­ close to its middle rate in quieter trading pleted. Spot sterling moved away from until another flurry of market activity in the floor, holding around $2.55 in early early March pushed the rate up well above January. In addition to the general $2.62. uncertainty in the exchanges, demand for GERMAN MARK sterling was buoyed by sizable oil com­ pany purchases of pounds and by the Following massive inflows of funds to sharp drop in Euro-dollar rates at a time Germany in the early months of 1971, when money market conditions in Britain the mark was allowed to float on May 10. were being tightened by the usual large The spot mark moved well above its pre­ tax payments falling due during the first vious ceiling but, when the rate started quarter. Nevertheless, sterling was still to settle back in early June, the Federal only slightly above the lower limit while Bank began selling dollars for marks in most other major European currencies order to absorb excess domestic liquidity Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

236 FEDERAL RESERVE BULLETIN □ MARCH 1972 and to reduce its swollen reserves. At the the additional marginal reserve require­ same time, this policy had the effect of ment on liabilities to nonresidents was pushing up the mark rate. These dollar maintained at 30 per cent. Although this sales continued through July, but were easing of monetary policy was partly a suspended in August when the general response to the slackening of domestic run on the dollar developed in full force. economic activity, the German authorities In early August the mark rate moved up to indicated that their principal concern more than 8 per cent above par. was the size of the de facto revaluation After President Nixon’s address on of the German mark, not only against August 15, formal exchange dealings the dollar but against other currencies in Germany were suspended through the as well. full week of August 16-20. During the The spot rate dropped sharply follow­ week, consultations proceeded among ing these steps but rebounded just after the EC countries in search of a common mid-October when there was a temporary basis for the reopening of the exchange squeeze for domestic liquidity and when markets. When no agreement was reached, rumors again circulated that the mark the German Government reopened the would soon be revalued by a large market on August 23 with the mark rate amount. German officials attempted to floating as before. As trading volume quiet these rumors by repeatedly stressing continued at generally reduced levels, the that Germany would not accept too large a mark fluctuated closely around the pre- revaluation of the mark, and they reiter­ August 15 level until mid-September, ated the Government’s intention of im­ after which it rose sharply to a premium posing reserve requirements against the of more than 10 per cent over par prior to foreign borrowings of nonbanking enter­ the IMF annual meeting that opened later prises. Moreover, in view of the de­ that month. The German Federal Bank terioration of the forward market that had began to intervene in both spot and for­ resulted from the great uncertainty pre­ ward markets to moderate the rise in the vailing in international markets, plans rate, and by early October the mark had were announced to provide insurance to eased in quieter trading. Meanwhile, the German exporters against forward ex­ Federal Bank had taken in some $240 change risks, particularly on longer-term million spot and another $775 million for contracts. (Such a facility was actually forward delivery. put into effect in early 1972.) These pro­ On October 13 the Federal Bank Coun­ nouncements helped bring the mark rate cil lowered the central bank’s discount down again, and it held at a premium rate from 5 per cent to 4% per cent and its of less than 10 per cent over par through “Lombard” rate against secured advances the end of October. On November 1, from 6V2 per cent to 5Vz per cent, both moreover, the cut in the banks’ reserve effective the next day. At the same time, requirements became effective, and the reserve requirements against the com­ approximately $1 billion equivalent of mercial banks’ domestic liabilities were marks that was thus released contributed reduced by 10 per cent across the board, to an easing of domestic liquidity con­ effective November 1, but the require­ ditions. Consequently, the mark con­ ments against liabilities to nonresidents tinued to decline gradually in quieter were left unchanged at twice the old trading during the first half of November. rates applying to domestic liabilities, and The introduction in the U.S. Congress Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 237 on November 18 of a bill to permit an restraints against inflows of foreign funds increase in the dollar price of gold of up was removed, but the Government did to 10 per cent aroused market expecta­ announce that it would not avail itself tions of larger exchange rate adjustments for the time being of the power to im­ than previously had been anticipated, pose reserve requirements of up to 50 and there was a new rise in the mark, per cent against German firms’ borrow­ along with other currencies. In occasion­ ings abroad, a power it had sought ally hectic trading, by November 24 the since last summer and which was finally rate rose to 10.6 per cent over par. The voted by Parliament on December 17. market steadied prior to the Group of Ten Despite the large revaluation against meeting in Rome on November 30 and the dollar, no significant movement out December 1, but when reports from that of marks developed when trading was meeting indicated progress toward a gen­ resumed in the Frankfurt market on eral realignment there was a new surge December 21. The spot mark opened of demand for marks that carried the rate somewhat above the new floor in a thin to a premium of almost 13 per cent by and generally quiet market and then rose December 6. The following morning in later in the day to around $0.3070, the Frankfurt, after Economics and Finance level that had prevailed just prior to the Minister Schiller intimated that the authori­ weekend agreement. In the meantime, ties might move to push the mark rate German money market conditions had down, notably through a relaxation of tightened considerably during the first monetary policy, that rate dropped, but half of December and, when Euro­ it snapped back when the German Federal dollar rates started to decline again, the Bank Council took no new measures at German Federal Bank Council cut both its December 8 meeting. In the mean­ the central bank’s discount rate and its time, the Federal Bank had reentered Lombard rate on secured advances by % the spot market, purchasing small amounts percentage point to 4 per cent and 5 per of dollars daily over the first 2 weeks of cent, respectively, effective December 23, December, and this steady intervention and again reduced the banks’ reserve re­ helped to keep the market orderly. Never­ quirements against domestic liabilities by theless, as the December 17-18 Group 10 per cent as of January 1. (The stiff of Ten meeting drew nearer, the mark requirements against liabilities to non­ rose again close to 13 per cent above residents, however, were kept unchanged.) par. This relaxation of credit policy, com­ Following the Washington meeting, bined with a modest unwinding of specula­ the German authorities kept their ex­ tive positions, helped to push the spot change markets closed on Monday, Dec­ mark down temporarily to $0.3047 on ember 20, but reopened them the next December 29. day, after having established a new cen­ Early in the new year, however, tral rate of $0.3103% for the mark, doubts began to spread in the exchange representing an effective revaluation of markets that a durable settlement of the 13.58 per cent against the dollar. At the international monetary crisis really had same time, the Government announced been achieved. With the press and the that it would set margins at $0.3034% and markets focusing more and more on the $0.3174%, that is 2lA per cent on either many issues remaining to be resolved, side of the central rate. None of the the atmosphere deteriorated progressively Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

238 FEDERAL RESERVE BULLETIN □ MARCH 1972 over the first weeks of January, and al­ 25, while the rediscount quotas of credit most any news item or rumor was seized institutions were reduced by 10 per cent upon as a reason for additional selling of as of March 1. (At the same time, in an dollars. Consequently, there was re­ essentially neutral move, marginal re­ newed buying of marks along with other serve requirements against nonresident major European currencies. In active liabilities were raised from 30 per cent to trading, heavy demand drove the spot 40 per cent, but the base period from mark through the new central rate on which accruals in such liabilities are January 13. Buying pressures remained measured was brought forward from strong for a few days more, but the wave November 1970 to November 1971.) then crested and the markets turned For its part, the Ministry of Economics much calmer. Some profit-taking de­ and Finance announced that a 40 per veloped, but the mark remained well above cent reserve requirement would be placed the central rate through the end of Jan­ against most foreign borrowings of uary. German nonbanking enterprises, retro­ A new wave of intense nervousness active to January 1. In response to these swept through the foreign exchange measures, the spot rate fell back some­ markets on Feburary 1 and 2, triggered what and held below its upper limit in part by a sharp rise in the free market through late February and early March. price of gold. Once again, the mark rate The Federal Reserve, using marks al­ was bid up and as it rose additional ready held in balances, made a $10 mil­ buyers were drawn in. Moving quickly lion paydown on its swap drawings on the to head off an even sharper upsurge, the German Federal Bank on November 12, Federal Bank intervened forcefully on thereby reducing those commitments to February 2 as activity reached sizable $50 million equivalent currently out­ proportions. When demand continued standing. On March 3 the U.S. Treasury strong the next day the Federal Bank redeemed $76.5 million of a maturing again entered the market and its sustained $153.0 million equivalent German-markintervention soon led to an easing of the denominated note; the maturity of the rate. Market uncertainties continued, residual $76.5 million equivalent of the however, and toward midmonth the rate security was extended for a further 4was pushed even higher in a new round month period to July 3, 1972. of speculation. The Federal Bank again stepped in, dealing heavily in the spot BELGIAN FRANC market on February 17, and once more A strong current account and heavy turned the rate downward. On subse­ capital inflows, including a build-up of quent days, activity was reduced and the leads and lags, kept the Belgian franc mark traded in a narrower range above at or near its upper limit through most $0.3150. Then, on February 24, the of 1970 and early 1971. The National German authorities took new measures Bank of Belgium was accordingly obliged designed to lessen the inflow of funds to absorb sizable amounts of dollars from and to defend the Washington arrange­ the market. Rather than have these dol­ ments. The Federal Bank’s discount and lars converted immediately against U.S. Lombard rates were cut once more, by 1 reserve assets, the Federal Reserve pro­ full percentage point to 3 per cent and 4 vided temporary cover through drawings per cent, respectively, effective February under the swap arrangement with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 239 National Bank. When the inflows to tive restrictions on the expansion of Belgium persisted through the first 6 short-term bank credit would be allowed months of 1971, $330 million of the to expire at the end of September, since longest outstanding swap contracts was the risk of inflationary excess demand for settled by use of SDR’s and U.S. Treasury goods and services had been sharply drawings of francs from the IMF, leav­ reduced. Finally, the National Bank ing $340 million of swap debt remain­ lowered its discount rate from 6 per cent ing by the end of June. With the huge to 5Vz per cent, effective September 23. speculative inflows to Belgium in late In the latter part of September the franc July and early August, Federal Reserve rate advanced to a premium of almost 7 commitments in Belgian francs rose to per cent over the official parity when $600 million under the swap line with the European currency rates generally were National Bank and to $35 million with bid up prior to the IMF annual meeting. the BIS under the swap line for authorized After the Fund meeting, exchange European currencies other than the Swiss rates tended to ease but the Belgian franc franc. soon turned back upward again, reflect­ Following President Nixon’s speech on ing in part an improvement in Belgium’s August 15 the Belgian authorities kept current-account position. Moreover, li­ their exchange market closed for a full quidity in the Brussels money market was week. After the EC decision to open being tightened by a Belgian Treasury markets again on August 23, the Belgian borrowing. These pressures continued Government decided to allow the official through the month and with Euro-dollar franc as well as the financial franc to float. rates declining concurrently, the un- In addition, Belgium entered into an CHANGES IN EXCHANGE RATES AND 2B agreement with the Netherlands to limit OFFICIAL TRANSACTIONS the variation in the rate between the Bel­ BILLIONS OF DOLLARS gian franc and the guilder to 1.5 per cent 1.6 on either side of their official parities. Once the market opened, the official rate advanced to almost 3.5 per cent over parity, coming into line with the rate in the financial franc market. As trading in tfie Belgian franc became more orderly, the National Bank on September 15 suspended its request of June 1971 that any increase in the Belgian commercial banks’ net external liability positions beyond a specified limit be matched by non-interest-bearing Belgian franc deposits with it, and the funds that had been blocked under that measure were returned to the banks. Similarly, a prior request that the banks exercise restraint in their foreign borrowing was suspended. A few days later, the Na­ tional Bank announced that the quantita­ For notes see p. 234. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

240 FEDERAL RESERVE BULLETIN □ MARCH 1972 covered interest arbitrage differential drawings of $455 million are on the Na­ shifted in favor of Brussels in late Octo­ tional Bank of Belgium and one of $35 ber. Consequently, by early November million is on the BIS. the spot rate had reached a premium of Following the Washington meeting, 7.8 per cent over par. the Belgian authorities kept their market Meanwhile, the Federal Reserve had closed on Monday, December 20, and begun a program of modest purchases of announced that as of the next day the Belgian francs in the market in order to franc’s central rate would be set at reduce gradually the outstanding swap $0.022313, an appreciation of 2.76 per debt in that currency. These purchases cent against gold and an effective total enabled the System to repay $60 mil­ revaluation of 11.57 per cent against lion equivalent of franc drawings in the dollar. New intervention points were October and $20 million in November established at 2XA per cent above and cutting the total indebtedness to $555 below the central rate, except that Bel­ million. gium and the Netherlands (which re­ In mid-November the Belgian franc was valued by the same percentage against the caught up in the wave of foreign cur­ dollar) decided to maintain the close link rency buying that followed the introduc­ between their currencies by continuing tion in the U.S. Congress of a bill to to intervene when necessary to keep the empower the President to raise the dol­ rate between the franc and the guilder lar price of gold by up to 10 per cent. The within limits of 1.5 per cent on either spot franc advanced another 1 per cent side of the central rates. When the Brus­ by November 24 and, after easing briefly, sels exchange market was reopened on participated in the general rise of European December 21, the Belgian franc held well currencies that developed in early De­ above the new floor, little changed from cember. By midmonth the franc had the level it had reached during the pre­ reached a premium of 10 per cent above ceding week. Thereafter the rate rose par, as traders sought to anticipate the gradually and by the year-end, when level that might emerge from a possible Euro-dollar quotations once again fell currency realignment coming from the below comparable domestic interest yields, Group of Ten meeting in Washington it reached the new central rate. on December 17 and 18. In view of the continuing decline in In early December, the System had international interest rates and the in­ made further progress in reducing its creasingly pronounced slowdown of Belgian franc swap commitments, us­ domestic economic activity, the Na­ ing francs acquired from U.S. Treasury tional Bank reduced its lending rates by balances, directly from the National Vi percentage point effective January 6, Bank of Belgium at times when the the basic discount rate being lowered to Belgian Government needed dollars for 5 per cent. Nevertheless, the franc current payments, from the market, and strengthened further as Euro-dollar rates from deliveries on forward market pur­ continued their sharp retreat. The rise chases made earlier in the fall. By De­ gained momentum in mid-January, and cember 21, a further $65 million equiva­ the spot franc rose to around 1.5 per cent lent had been repaid, reducing the out­ above the central rate. Although trading standing swap commitment in francs to volume then diminished, the franc moved the present total of $490 million. Of these, even higher over the subsequent 2 weeks Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 241 as domestic liquidity conditions in Bel­ to push dollars out into the exchanges. gium began to tighten. At the end of the The guilder nevertheless was subjected month and in early February there was to the same speculative influences as another round of heavy buying of cur­ other European currencies and rose rencies as there were growing doubts sharply in the general run on the dollar in the markets over the durability of the in early August, to as high as 5.1 per Washington agreement and the willing­ cent over par. ness of European central banks to absorb In the week of August 16-20, official dollars in defense of the new rates. fixings in the Dutch exchange market Effective February 3 the National Bank were suspended, and Dutch and foreign cut its lending rates by a further V2 per­ banks dealt guilders only in limited centage point with the basic discount amounts to meet customers’ immediate rate set at 4V2 per cent. The demand for needs. In New York, the rate at one francs remained strong, however, and point touched $0.2950 or 6.2 per cent the National Bank intervened in the over par. When the Amsterdam market market on several occasions during reopened on August 23, the Dutch February, partly through swap trans­ authorities continued to permit the guilder actions—buying spot dollars against re­ rate to float, as it had done since May 10, sale forward—and partly through out­ but under an agreement between the right purchases of spot dollars in defend­ Netherlands and Belgium the central ing the new ceiling rate when a speculative banks of the two countries stood ready surge developed just after midmonth. to intervene in each other’s currency These purchases, along with similar op­ in order to maintain the rate between erations by other central banks at that their currencies within limits of 1.5 per time, helped calm the market somewhat. cent on either side of the official parities. Effective March 2 the National Bank By early September the guilder rate was further reduced its lending rates, cutting holding at just over $0.2900. the basic discount rate by Vi percentage During September the Dutch authori­ point to 4 per cent and consolidating its ties took additional steps to discourage other rates at 5 per cent. Nevertheless, capital inflows. Effective September 6, the franc rate remained at or close to its a so-called “closed circuit for bonds” upper limit. was introduced, whereby purchases of guilder-denominated bonds by non­ DUTCH GUILDER residents from residents could be made When the German mark was floated early only with guilders obtained through in May 1971, the Dutch Government the sale of such bonds by nonresidents felt it had no alternative but to float the to residents. Effective September 15, guilder as well. The guilder rate sub­ the Netherlands Bank lowered its dis­ sequently moved to a premium over its counts rate by Vi percentage point to 5 previous ceiling, but did not rise in rela­ per cent, explaining that the reduction tive terms as far as the mark, since the had been made in support of the measures underlying payments situation for the directed at countering foreign capital Netherlands was not particularly favor­ inflows. The spot guilder rate neverthe­ able and since the Netherlands Bank less rose strongly in the second half of remained out of the market when the September, moving up along with most German Federal Bank began actively other European currencies, and it held Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

242 FEDERAL RESERVE BULLETIN □ MARCH 1972 around $0.2975, almost 7% per cent currencies, in line with the practice over par until mid-October. adopted by the other major countries. The In the meantime, the Amsterdam money Benelux countries, however, also de­ market was tightening up with the onset cided to maintain their prior agreement of the period of seasonally heavy tax to hold the rate between the guilder and payments, and Dutch residents began to the Belgian franc within limits of 1.5 liquidate their German mark positions to per cent on either side of their respective meet domestic cash needs. Even though central rates. There was little, if any, the authorities supplied liquidity to the outflow of speculative funds from the domestic market by means of purchases Netherlands when the Amsterdam mar­ of Dutch Government securities, the guil­ ket was reopened on December 21. The der rate rose further, to a level 8.5 per scope for a reflux of nonresident guilder cent above par by mid-November. The holdings was not large in any case. Since run-up in the rate also had the result of the guilder had been floating for some 7 reinforcing the market’s bullish outlook months, nonresident guilder holdings for the guilder, so that when domestic were not very sizable; in addition, the liquidity conditions eased sharply in mid- Dutch authorities had discouraged some November, following the Dutch Govern­ inflows of foreign funds by, among other ment’s monthly payments to municipali­ measures, the closed circuit for bonds. ties, the guilder rate softened only slightly The guilder rate thus did not weaken, in response. Moreover, a few days later as the new pattern of exchange rates the guilder was caught in the widespread emerged, but began to rise during late upswing of foreign currency rates trig­ December and early January. gered by the introduction in the U.S. With interest rates falling in foreign Congress on November 18 of a bill to centers, the Netherlands Bank reduced empower the President to raise the of­ all its lending rates by V2 percentage ficial dollar price of gold. The guilder point as of January 6, the discount rate rate soared to a premium of almost 10 being cut to 4Vi per cent. Domestic per cent over par by late November. money market rates declined in response, After a sharp setback in response to ini­ but the guilder rate soon began to advance tially discouraging reports of the outlook again, in part reflecting sizable direct for the November 30-December 1 meeting investment inflows and an improvement of the Group of Ten in Rome, the guilder in the current account as economic ac­ rate rebounded in the generalized buying tivity slowed down in the Netherlands. of foreign currencies that greeted the To a much larger extent, however, the progress made at that meeting, and held demand for guilders stemmed from the around a 10.5 per cent premium by the exchange markets’ growing concern over time the Group of Ten convened in Wash­ the viability of the exchange rate re­ ington for their next meeting, on Decem­ alignment negotiated in Washington. The ber 17 and 18. guilder was pushed through its $0.3082 Following the Washington meeting, central rate on January 10 and, 1 week the guilder along with the Belgian franc later, it had reached $0.3128^. Ten­ was effectively revalued by 11.57 per cent sions in the exchanges then relaxed against the dollar, and new official inter­ temporarily, while at the same time money vention rates percentage points apart market conditions were considerably were established for each of the two eased in the Netherlands by the Govern­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 243 ment’s usual midmonth payments. The ditions in Switzerland as a result of the guilder consequently developed a some­ inflows prior to the revaluation, the con­ what softer tone but by late January was tinuing uncertainty in the exchange market strengthening once more in response to through the rest of the spring and the renewed domestic money market pres­ early summer left Swiss banks reluctant sures. to shift funds into the Euro-dollar market Early in February, when a surge in the and discouraged traders generally from free-market price of gold upset the ex­ unwinding their long franc positions. change markets, the guilder rose almost Under these circumstances, the National to the upper intervention level, but the Bank took measures to calm the market pressure was less intense than on other and to absorb excess Swiss franc liquidity. foreign currencies and the Netherlands In one operation, the National Bank sold Bank did not have to intervene. More­ $250 million to Swiss commercial banks over, by that time, the Dutch authorities on a swap basis, on condition that the had begun to offset the liquidity squeeze dollars be invested in certificates of de­ in the Amsterdam money market by open posit in U.S. banks; cover for this op­ market purchases of Dutch Treasury eration was provided by means of a bills. When the supply of such bills dried Federal Reserve swap drawing of $250 up, the Netherlands Bank decided to million equivalent on the line with the augment domestic liquidity by entering Swiss National Bank, thereby reactivating into foreign exchange swaps with its the arrangement. Late in May, reflows commercial banks and, over the course did develop and the banks began to pur­ of several days starting February 9, chase substantial amounts of dollars bought dollars spot against sales for from the central bank. These outflows delivery 1 and 3 months hence. These ceased early in June, however, when the operations relieved some of the upward Swiss franc and other European currencies pressure on the spot rate until a new wave moved up in response to the rise in the of exchange market uncertainty pushed the German mark, following the initiation of spot guilder to the ceiling just after mid­ dollar sales by the German Federal month, and the Netherlands Bank pur­ Bank. Subsequently, the franc market chased a modest amount of dollars. The became quieter and the rate declined guilder traded just away from its upper later in June and in July, falling almost limit through the end of February. Ef­ to the National Bank’s selling rate for fective March 2 the Netherlands Bank cut dollars. its discount rate by a further Vi percentage The relative quiet in the Swiss franc point, to 4 per cent, explaining that this market was broken in early August. With move was taken in view of the decline in other major currencies partly insulated interest rates abroad. The guilder rate by either exchange controls or floating nevertheless remained at or close to its rates, the Swiss franc began to bear the upper limit. brunt of the speculative attack against the dollar. The National Bank accord­ SWISS FRANC ingly negotiated an agreement with the In May 1971, the Swiss franc was re­ major Swiss banks that would prohibit valued by 7.07 per cent, the first change interest payments and set 100 per cent of the franc’s external value in 35 years. reserve requirements against additional Despite extremely liquid monetary con­ nonresident deposits. But the inflows Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

244 FEDERAL RESERVE BULLETIN □ MARCH 1972 CHANGES IN EXCHANGE RATES AND On August 16, following President 2C OFFICIAL TRANSACTIONS Nixon’s speech, the Swiss National Bank BILLIONS OF DOLLARS suspended its exchange operations, thus allowing the franc to float. Then, the 4.0 National Bank immediately imposed the previously agreed 100 per cent reserve requirement against increases in the banks’ foreign liabilities and prohibited the payment of interest on additional short-term deposits in francs made by nonresidents, both measures retroactive to July 31. With the National Bank ex­ tending the suspension of its exchange operations from day to day during the week of August 16-20, commercial 3.0 banks carried on only limited dealings FRANCE among themselves for immediate needs. 2.0 J.- When the other European markets I - * ' were reopened on August 23, the Swiss 1.0 ■ National Bank kept its market officially EXCHANGE RATE closed. This left the Swiss franc effec­ tively floating, since the commercial 1971 1972 banks remained free to trade in foreign currencies. In the general uncertainty For notes see p. 234. and nervousness that prevailed in the continued to mount rapidly, and the markets, the franc rate rose sharply, mov­ franc rate was pushed to the National ing to 3.6 per cent over par by August Bank’s buying rate for dollars. After 26. That day the National Bank an­ taking in large amounts of dollars, the nounced it had reached an agreement with National Bank announced on August 9 the three large Swiss banks to discourage that the franc proceeds of any further speculative inflows. Under the terms of dollar sales to it would be placed in this agreement, the banks could buy a blocked accounts until the agreement with daily maximum of $2 million from any the banks could be implemented. The one customer when the spot rate was Swiss authorities were nevertheless faced between $0.2525% and $0.2531% and with further massive offers of dollars $1 million at rates of $0.2531% or higher. through August 13. In all, the National The franc proceeds of any sale in excess Bank’s reserves rose by some $2.1 bil­ of those amounts would be blocked in nonlion in the first 2 weeks of August. To interest-bearing accounts for 3 months. provide cover for the intake, the Federal The following day the National Bank Reserve drew in full its Swiss franc swap reached an agreement with the Swiss lines, raising such commitments in francs Bankers Association to extend to all from $250 million to $1,600 million (of foreign-owned balances the interest pay­ which $1 billion was drawn on the Na­ ments ban on foreign funds that had tional Bank and $600 million on the flowed into Switzerland since July 31; BIS), and the Treasury issued a $333 originally, the ban had applied only to million Swiss-franc-denominated note. funds with a maturity of less than 6 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 245 months. These and earlier restrictions of progress by the Group of Ten at the on dealing in francs, along with the un­ Rome meeting, a new upswing of ex­ certainties generated by an effective change rates developed on December 2 floating rate, kept both the size and the and, as the franc also came in demand, number of transactions far below normal. the National Bank suspended the agree­ Speculative flows especially were sharply ment to limit exchange dealing at pre­ curtailed by the dealing limits set by the scribed levels. The spot rate rose well National Bank. In addition, with the rise beyond the previous levels, reaching in Euro-dollar rates and the downward a premium of some 5.4 per cent in drift of the German mark, the spot franc Switzerland on the morning of December backed away sharply. On September 8 7. Thereupon the National Bank again the Swiss Government asked Parliament asked the Swiss banks to limit the sales for emergency authority to take various of francs to individual customers but additional measures to defend the franc this time to $1 million equivalent a day, if this should again become necessary, regardless of the rate at which the franc such as the power to impose negative was trading. As previously, any francs interest rates on hot money inflows or sold in excess of the agreed-upon limit to declare the voluntary agreement with were to be blocked in non-interestthe large banks to be legally binding on bearing accounts with the National Bank. all Swiss banks; these powers were With the new arrangement in effect, granted by Parliament on September 29. trading turned very thin once more and The franc rate began rising after mid- the spot rate receded, only to rise again September and by the month-end reached in the flurry of activity preceding the the level at which the agreement to limit December 17-18 Washington meeting franc sales to individual customers be­ of the Group of Ten. came operative, but trading continued to Following that meeting the Swiss be generally quiet. With the holding of authorities fixed a central rate for the speculative positions in francs made ex­ franc of $0.2604V8—in effect, a revalua­ pensive by the ban on interest payments, tion of 6.36 per cent against the dollar funds began to trickle out of Switzerland from the franc’s parity that was estab­ in early October, largely for investment lished on May 10, and of 13.88 per cent in the Euro-currency market. This modest from the parity in force prior to Switzer­ outflow continued over the following land’s revaluation on that date—and weeks, pushing the spot rate back down announced new intervention points at to the $0.2500 level by late October, some rates 2lA per cent on either side of the 2. per cent over par, and holding it there new central rate. The establishment of through mid-November. these rates, effective Tuesday, December Shortly thereafter, the Swiss franc was 21, marked the official reopening of the caught up in the new burst of speculation Swiss market for the first time since in all major European currencies and it August 13. Actual trading conditions advanced to $0.2533, a premium of 3.4 were little changed, however, except per cent over par. With the rate at this for the abolition of the December 7 level, the agreement that limited each of agreement limiting franc sales to any one the three large Swiss banks’ daily sales customer to $1 million a day. The August of francs to any one customer again came 16 restrictions, in particular, remained into force, and trading volume became in effect; that is, increases in the banks’ very thin. Nevertheless, with the news net foreign liabilities over the July 31 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

246 FEDERAL RESERVE BULLETIN □ MARCH 1972 levels continued to be subjected to a 100 following the devaluation of 1969, with per cent reserve requirement, while in­ substantial improvement in both the cur­ terest payments on nonresidents’ de­ rent and the capital accounts. Although posits made after July 31 were still market demand for the franc was oc­ prohibited. When trading began on the casionally swollen by the generalized morning of December 21, the franc speculative buying of most European held just above $0.2580, the level to currencies during the first half of the which it had risen before the Group of year, defensive measures taken by the Ten meeting in Washington, but then French authorities helped keep such began to ease gradually. By late Decem­ pressure within bounds. In late June and ber modest outflows from Switzerland early July, however, rumors circulated had brought the spot rate down almost that the French authorities might be to the new floor, but there was no sub­ amenable to a widening of the trading stantial liquidation of franc positions. margins against the dollar and, for the The Swiss banks maintained their highly first time in 1971, the speculative focus liquid positions as the year-end ap­ shifted to the French franc. The spot proached. Moreover, as time passed there rate was quickly driven to the ceiling, were growing market doubts over the and the Bank of France had to take in durability of the exchange rate realign­ substantial amounts of dollars from the ment. This concern was reinforced by market. To avoid an even heavier influx extensive press coverage of the various the Bank of France lowered its domestic issues that remained to be resolved and intervention rates, pushing French money of the difficult negotiations that still lay market yields well below similar Euro­ ahead. dollar quotations. The authorities also In this wary atmosphere the franc rate absorbed some of the newly created continued to hold slightly above the floor domestic liquidity through a further hike well into January, even though domestic in minimum reserve requirements. De­ monetary conditions had eased con­ spite these measures and strong denials siderably once the need for year-end of the rumors by French officials, heavy liquidity had passed. In mid-January demand for francs continued through the spot franc began to rise along with July, and the Bank of France recorded a other European currencies, although it reserve gain of $498 million for thatmonth. tended to lag somewhat. Several rounds With these and earlier reserve gains the of heavy buying brought it near the French authorities were able to repay central rate by early February and pushed $609 million to the IMF on August 9, it briefly above that level in mid-February. thus clearing away the last of France’s Subsequently the market turned generally indebtedness to the Fund. quieter, but in early March the Swiss The large inflows continued in early franc was again trading around its cen­ August and the French authorities took tral rate. As of the date of this report, the further steps to stem the tide. Reserve full $1.6 billion equivalent of Federal requirements were again raised, and Reserve drawings in Swiss francs re­ there was some relaxation of existing mained outstanding. exchange controls on outpayments. In addition, the banks were instructed not to FRENCH FRANC increase their net external indebtedness or By early 1971, the French balance of decrease their net claims vis-a-vis non­ payments had shown a strong recovery residents from current levels. In this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 247 connection, the banks were expected to market was very limited at first, with refrain from accepting new deposits in wide spreads in quotations, but com­ francs from nonresidents whose motiva­ mercial business picked up fairly rapidly. tion for holding francs appeared to be Trading was slower to develop in the speculative. With the franc already in financial franc market, where the rate strong demand, this measure was in­ moved to a 2.5 per cent premium over terpreted by the market as evidence of that of the official franc. In the wake of the French authorities’ unwillingness to the floating of the yen on August 27, accumulate additional dollars and, in the renewed demand developed for the of­ ensuing confusion, quotations for francs ficial franc—the only major currency still in markets outside France moved above kept within its prescribed limits—and the official ceiling. The Bank of France the Bank of France again had to absorb quickly acted to clarify the instructions, dollars. and the market calmed somewhat. Never­ In September, there was some reversal theless, in the general run on the dollar of the previous flows into francs, as the taking place at the time, the demand for French exchange regulations, which were francs was unrelenting, and the Bank of further elaborated, began to bite. In France continued to take in dollars on a particular, French exporters and im­ daily basis though Friday, August 13. porters had to unwind some of the leads Following President Nixon’s speech on and lags built up prior to mid-August. August 15, the French exchange market With the official franc rate dropping was closed for the week of August 16-20. below the ceiling, the Bank of France The French Government reopened the sold substantial amounts of dollars, and market on Monday, August 23, on the reserves declined by $318 million in basis of a two-tier exchange system. The September. The financial franc rate, Bank of France would defend the franc which had reached a premium of 4 per at the prescribed intervention points only cent over the official rate, gradually eased in the official market, through which off to a premium of 2XA per cent by the trade and trade-related service trans­ end of September. actions as well as governmental trans­ The seiling of francs continued in Octo­ actions would be effected. All capital ber, as some speculative positions taken transfers, as well as tourist and most 3 months earlier—in July—were being other service transactions, would hence­ unwound. The official franc rate edged forth be strictly segregated in a financial down almost to par by mid-October, but market where the franc rate would be the market for francs was exceedingly allowed to find its own level. At the same thin, and in one burst of demand on time, measures were taken to prevent October 21 the rate rose almost to the leads and lags from developing in the ceiling before settling back. French of­ future, including strict limitations on ficial reserves declined by a further $38 hedging transactions in the forward ex­ million for the month as a whole. change market and a requirement that Rate movements were even more vola­ imports (other than machinery) be paid tile in the financial franc market. After for within 3 months from their entry into moving up in early October, the financial France, importers being given 1 month franc rate resumed its decline, as expecta­ to comply with this new rule. Given the tions of a franc revaluation or upward float inevitable complexity of these exchange receded and as French monetary policy regulations, trading in the official franc moved gradually but steadily toward Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

248 FEDERAL RESERVE BULLETIN □ MARCH 1972 ease. The rate fell especially sharply— and the Bank of France’s market intake to IV2 per cent over the official franc mounted. To stem this rush into francs, rate—on October 20, when the securities on December 3 the French authorities currency market was abolished, and drastically tightened their exchange con­ French residents were now allowed to trols against the inflow of funds, while buy foreign-held securities freely with liberalizing them for outflows. currencies purchased in the financial Among other measures, Finance Min­ franc market. (Formerly, such portfolio ister Giscard d’Estaing announced that, investments had to be effected for the effective 1 week later, nonresidents would most part with currencies purchased be allowed to use their holdings of official from other residents liquidating foreign or financial francs only for the settlement securities holdings.) Subsequently the of authorized transactions with residents financial franc firmed again, fluctuating and that such balances would no longer around a premium of 2 per cent over the be convertible into foreign currencies official franc rate, but was held in check or usable to acquire domestic money mar­ by additional steps taken by the authorities. ket instruments. Furthermore, the au­ The Bank of France further lowered its thorities reserved the right to transfer any domestic money market intervention rates, increase in such balances over the Novem­ confirming the easing of its policy on Oc­ ber 30 levels into blocked accounts. tober 28 when it cut its rates on discounts In addition, permission was granted to and secured advances by % percentage nonresidents to borrow funds of up to 2 point to 6V2 per cent and 8 per cent, years’ maturity from French residents respectively. Then, on November 16, non­ without prior authorization from the Bank residents were allowed to import into of France, and the restrictions placed on France and to sell in the Paris stock market the forward covering of imports were French shares held abroad, the proceeds somewhat liberalized. of these sales being credited to financial These measures had an immediate ef­ franc accounts. fect on the market and on the following Shielded by France’s severe exchange two trading days, as the spot rate dropped, control regulations, the franc was not the Bank of France was able to sell some subjected to heavy pressure until late dollars. Strong demand for francs soon in November, when the market began to resumed, however, as foreign exchange see prospects for a devaluation of the markets around the world were caught up dollar against gold that would result in in speculative ferment in anticipation of an effective revaluation of the franc the approaching Group of Ten meeting in against the dollar. This shift in expecta­ Washington. The official rate rebounded to tions led to a surge of demand for francs— the ceiling on December 9 and held there notably by French corporations hastening over the subsequent days. to convert their export proceeds—that On December 14, following their meet­ drove the spot rate to the ceiling, and the ing in the Azores, Presidents Nixon and Bank of France had to intervene heavily Pompidou issued a communique stating during the last week of November. For that they would “work toward a prompt the month as a whole, French official re­ realignment of exchange rates through a serves increased by $222 million. With devaluation of the dollar and revaluation the Group of Ten meeting in Rome clos­ of some other currencies.” This statement ing on an optimistic note on December 1, that the United States was now pre­ the buying of francs increased markedly, pared to raise the dollar price of gold as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 249 part of a broader settlement greatly in­ pected so large an appreciation of the creased market expectations of a break franc against the dollar, and profit-taking in the international monetary impasse at brought the franc under heavy selling the Group of Ten meeting in Washington. pressure as soon as the Paris exchange The news of the Azores agreement hit'the market was reopened on December 21. Paris market late on the afternoon of With leads and lags beginning to be un­ December 14, and the next day there wound, the French authorities sold a con­ was a heavy demand for francs; with the siderable amount of dollars in the market spot rate at its upper intervention point, as the spot franc edged downward almost the Bank of France was obliged to ab­ to its new floor. Selling pressure on the sorb dollars. The demand pressure was franc let up in the last days of December, also strong in the forward market, and at and, early in 1972, with doubts beginning one point the premium on 1-month for­ to develop in the markets over the dura­ ward francs rose to more than 30 per bility of the Washington agreement, the cent per annum. After the Paris market franc rate began to advance. The financial closed on Friday, December 17, the spot franc, in the meanwhile, had fallen below franc surged to $0.1890 in New York. the official franc’s floor on December 21 On Monday, December 20, the French as speculative positions were unwound, Government kept its exchange market but it subsequently converged with the closed and announced that the franc’s official franc. parity expressed in gold would remain In January the French authorities took unchanged. At the same time, a new a number of steps to stimulate the domestic central rate was established for the franc economy, including reductions by the at $0.1954%, fully reflecting the pro­ Bank of France in its rates on discounts posed devaluation of the U.S. dollar and secured advances by Vi percentage against gold. Although the French au­ point to 6 per cent and IV2 per cent, thorities maintained the two-tier system, respectively. While these measures might they eased or abolished many of the ex­ have been expected to bring about some change controls imposed since early Au­ decline in the franc rate, there was gust. Thus, the December 3 regulations simultaneously a general strengthening of providing for the nonconvertibility of franc European currencies against the dollar, balances held by nonresidents and for the and the spot franc quickly rose to a level possible blocking of additions to such only slightly below the central rate. An franc holdings were lifted. The August 3 additional burst of speculation in early prohibition on increases in the banks’ February lifted the franc somewhat net external debtor positions or decreases above the central rate, and it continued in their net creditor positions vis-a-vis to rise through much of the month nonresidents was likewise eliminated. with the Bank of France on the sidelines. Furthermore, the National Credit Council Once again a modest premium emerged rescinded its August 17 order prohibiting for the financial franc. By early March interest payments on nonresident franc de­ the commercial franc had risen close to posits of less than 91 days, and the Bank the new ceiling. of France reduced its reserve require­ ments and eliminated differential require­ ITALIAN LIRA ments on resident and nonresident liabili­ In the several rounds of speculation in ties. favor of other European currencies dur­ Most market participants had not ex­ ing the earlier months of 1971, the Italian Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

250 FEDERAL RESERVE BULLETIN □ MARCH 1972 lira was largely neglected. Early in August, Italian reserves increased by $146 mil­ however, the lira was drawn into the lion in September. general run on the dollar; the spot rate The lira market remained generally quiet rose to the ceiling on August 9 and the in October and much of November, and Italian authorities had to intervene on a the spot rate held steady as a number of number of days during that week. After opposing influences tended to cancel each President Nixon’s speech on August -15, other out. (Official reserves declined by the Italian authorities also kept their ex­ $42 million in October.) On the one hand, change market closed for a week, while seasonal factors were now turning strongly intensive consultations took place within adverse for Italy’s current account, pur­ the EC. The lira rate moved up substantial­ chases of foreign exchange to repay inter­ ly in the New York market—which re­ national borrowings were exerting a drag mained open—but trading was extremely on the spot rate, and growing political and thin and the range between bid and of­ labor uncertainties were also tending to fered rates was very wide. When Italy weaken the lira. Moreover, acting on both reopened its exchange market on August 23, the authorities announced that they 2D CHANGES IN EXCHANGE RATES AND OFFICIAL TRANSACTIONS would no longer intervene at the official limits, although they might enter the BILLIONS OF DOLLARS PER C 1.2 12 market at other rates if this seemed advisable. Demand for lire was quite 8 strong at first, as the tourist season was in full swing, receipts had been backed up during the week of August 16-20, and leads and lags shifted in Italy’s favor. 0 The lira held at a premium of roughly 2 percentage points over parity, before set­ 4 20 tling back somewhat. For the month as a whole, Italian reserves rose by $424 16 million. In mid-September, in view of the high 12 rates prevailing in the Euro-dollar market at that time and of the availability of 8 domestic credit, the Italian Electricity Au­ thority (ENEL) decided to prepay in November the $300 million Euro-dollar loan it had contracted in May 1970. + 0 Additional Euro-dollar loans of minor amounts were also beginning to be repaid by other Italian official entities, which 8 had been very heavy borrowers during the preceding year and a half. These transac­ tions absorbed some of the sales of dollars in the Italian market and the lira rate re­ 0 mained fairly steady even though other 1971 1972 European currencies rose strongly against the dollar later in September. On balance, For notes see p. 234. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 251 internal and external grounds to ease Group of Ten meeting began in Wash­ domestic credit conditions, on October 14 ington. the Bank of Italy cut its discount rate Following that meeting, the Italian from 5 per cent to 4 V2 per cent and its authorities established a central rate of rate against secured advances from 5 per $0.001719% for the lira, representing a cent to 4 per cent. On the other hand, the 7.48 per cent appreciation against the dol­ upswing in the exchange rates of most lar (slightly less than the dollar’s proposed other EC countries, at a time when dis­ devaluation against gold) with new mar­ cussions were being actively pursued gins of 2lA per cent on either side. At the among Common Market officials as to same time, they retracted the tough ex­ means of narrowing the trading bands change control regulations introduced as between their currencies, tended to check of December 6. After the Italian market any decline in the lira rate. was reopened on December 21, the rate Although both political and economic soon settled near its new floor. Neverthe­ tensions grew during November the Italian less, the pressure was not intense, and lira was bid up during the last 10 days of official support was modest. the month on market expectations that it A prolonged presidential election in De­ would move higher in any settlement of the cember concluded with the installation of international monetary situation. Despite Giovanni Leone late in the month. The continuing large repayments of Italian formation of a new government proved to borrowings abroad, including ENEL’s be difficult, however, and ultimately Parli­ $300 million prepayment, official re­ ament was dissolved and new elections serves declined by only $193 million. were set for the spring. These political Then following the Rome meeting of the uncertainties and the social and economic Group of Ten countries, the lira rose problems awaiting the attention of the sharply in the first days of December— Government, together with continued pre­ the spot rate reaching a premium of 3.3 payments of foreign loans and a possible per cent over par. shift of leads and lags in favor of the Fearing that the defensive measures dollar, had a depressing influence on the taken at that time by the French Gov­ lira rate. Thus, although the rise of other ernment might deflect a heavy stream of EC currencies pulled the lira upward, in speculative funds toward Italy, the Italian January and February the rate eventually authorities introduced stiff exchange con­ settled somewhat below its central rate trol regulations of their own. Effective and held there through early March. Monday, December 6, the Italian banks were instructed to refuse conversion of JAPANESE YEN foreign currencies into lire, unless the With a continuing massive payments sur­ proceeds were required for normal trade plus and growing speculation over the pos­ or service transactions or for nonspecula- sibility of a revaluation, the Japanese yen tive capital transactions backed by the was in heavy demand throughout the early appropriate documentation. A few days months of 1971. The Japanese authorities later, on December 15, the major Italian responded with a variety of measures, banks agreed to cease paying interest on including sharp tightening of their ex­ all nonresident lira deposits. Nevertheless, change controls against inflows of funds demand for lire continued unabated, and and some easing of controls on outflows. the spot rate rose to a premium of more Nevertheless, in the general speculative than 4 per cent by December 17, when the atmosphere that developed in late July and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 FEDERAL RESERVE BULLETIN □ MARCH 1972 the first half of August, demand for the enterprises facing difficulties as a result of yen mounted rapidly and the Bank of the U.S. import surcharge, and provisions Japan bought large amounts of dollars were also made to facilitate the acquisition each day. of forward cover by such firms. Since Following President Nixon’s August 15 the foreign exchange banks were pro­ speech, dealers around the world were hibited from borrowing additional dol­ more than ever convinced that a revalua­ lars from abroad and the forward market tion of the yen was imminent. With Euro­ was in disarray, the Japanese authorities pean exchange markets closed and the had begun in June to place dollar deposits Japanese remaining open during the with the foreign exchange banks to enable succeeding week, the Bank of Japan had them to purchase export bills. Such de­ to absorb dollars on a massive scale posits amounted to $1.2 billion by early despite reinforcement of exchange con­ October, and additional deposits were sub­ trols. Finally, after further very large ex­ sequently placed with the banks to facili­ change gains on August 26 and 27, the tate the provision of forward cover for Japanese authorities decided to “suspend the small and medium-sized enterprises. temporarily the existing fluctuation margin The yen rate continued its rapid advance for buying and selling quotations of foreign during the first half of October but then exchange, while maintaining the present steadied at a premium of nearly 9.5 per parity of the yen.” The vast inflow during cent over par, as the unwinding of some August was reflected in a $4.4 billion earlier commercial leads and lags and gain in official reserves for the month as net sales of Japanese securities by for­ a whole. eigners exerted a dampening effect on In Tokyo, on August 28, the spot yen the demand for yen. Over the course of immediately rose to a premium of 5.5 October, Japan’s official reserves rose by per cent over par. The rate pushed steadily $716 million. The market remained in higher through September, despite sub­ better balance early in November, but in stantial further purchases of dollars by the general rise of currencies that devel­ the Japanese authorities and some addition­ oped later in the month the yen also came al tightening of exchange control meas­ into heavy and sustained demand. By the ures. As a consequence of these meas­ end of November the spot rate had risen ures, banks experienced considerable dif­ to a premium of more than 10 per cent ficulty in effecting yen payments, and over par, despite continuing official in­ trading in Japanese yen dropped to nom­ tervention that added a further $736 mil­ inal levels in New York, while in early lion to Japanese reserves. Demand stepped September the yen was suspended from up further in December, as the date of official trading in Frankfurt, Germany. The the Washington meeting approached and— Japanese authorities subsequently eased after having been briefly driven to a prem­ their restrictions slightly, but some pay­ ium of as high as 15 per cent—the yen ments problems persisted through Septem­ was quoted in New York at 12.3 per ber. By the end of that month, the yen cent over par on the day the meeting con­ rate had risen to a premium of 7.5 per cent vened. over par while Japanese reserves had in­ Under the agreement reached by the creased by a further $870 million. Group of Ten on December 18, the In September, the Japanese Government central rate for the yen was established also approved a package of measures de­ at $0.003246%, an effective revaluation signed to help small and medium-sized of 16.88 per cent against the dollar. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 253 Japanese authorities kept the Tokyo ex­ ly, reaching almost to its upper limit by change market closed on Monday, De­ February 24, while the Bank of Japan in­ cember 20, and in line with actions taken tervened to moderate the rise. At that by other countries, abolished some of point, the Japanese authorities moved to the measures introduced earlier to block alleviate some of the pressure by reintro­ the inflow of funds. The main body of ducing controls over prepayments of ex­ Japan’s severe exchange control regula­ ports. Thereafter, trading in the yen was tions, however, was left intact. When the more balanced, and the rate held steady Tokyo market reopened on December through early March. 21, the spot rate was quoted just above the new floor and a moderate outflow CANADIAN DOLLAR developed. This reflux intensified a few The Canadian dollar had been floating days later, and the Bank of Japan had since June 1970 and was not drawn into to extend considerable support before it the exchange market upheavals of the came to an end. Late in December spring and early summer of 1971. The spot the Bank of Japan lowered its discount rate ranged fairly widely, but the Bank of rate by lh percentage point to 4% per cent, Canada maintained a policy of intervening in a move designed to soften the domestic only to moderate movements in the rate and impact of the yen’s effective revaluation not to defend a particular level. During and to help stimulate the Japanese the general run on the U.S. dollar in economy. early August, however, the Canadian The yen continued to hold quietly dollar also was in strong demand, moving near its floor in the first days of 1972 and, up to close to $0.99. Following Presi­ in view of the generally satisfactory be­ dent Nixon’s August 15 address, the Ca­ havior of the market, on January 5 the nadian exchange market remained open. Japanese authorities announced a further At first, as with other currencies, the Ca­ and more substantial relaxation of ex­ nadian dollar was bid up against the U.S. change controls. Among other measures, dollar, nearly reaching $0.99%, but it the authorities eliminated the requirement quickly dropped back as concern grew of prior approval by the Bank of Japan that the new U.S. 10 per cent import for any prepayment of Japanese exports, surcharge might cut deeply into Canadian the curbs on outstanding balances in exports. By the following week the rate convertible free-yen accounts, the guide­ had declined to around $0.98%, and it line restraining borrowing of Euro­ remained easy through early September. dollars and other short-term funds by Jap­ On September 7 the Canadian Govern­ anese banks, and the special restrictions ment established a special fund of Ca­ on the accounts of brokers. Even though nadian $80 million upon which Canadian other measures limiting the foreign posi­ companies meeting certain conditions tions of Japanese banks were retained, could draw to offset adverse effects on this easing of the exchange control regula­ employment as a consequence of the U.S. tions resulted in 2 days of very heavy import surcharge. The Canadian dollar demand for yen and the Bank of Japan traded quietly through the rest of Septem­ stepped in to stabilize the market. The ber but began to move up sharply in speculative pressures that hit the markets October, as Canadian banks started adjust­ late in January brought a sharp demand ing their exchange positions for the annual for yen, particularly for prepayment of reporting date, October 31. When the spot Japanese exports, and the rate rose steadi­ rate reached the $1.00 level, the Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 FEDERAL RESERVE BULLETIN □ MARCH 1972 Canada cut its discount rate by Vi per 20, and the spot rate immediately rose cent to 4% per cent effective October 25, to nearly $1.00%, but expectations of a referring to both domestic and external further appreciation dissipated rapidly, considerations in explaining the move. In and the Canadian dollar dropped back over early November, liquidity conditions in succeeding days. Sizable interest and div­ Canada eased, leading to some reversal idend payments on U.S. investments in of previous inflows and to a softening Canada also began to exert a depressing of the spot rate to around $0.99Vi by influence on the spot rate, which fell below midmonth. On November 19, in a further the U.S. dollar on December 23. step to protect Canadian industry from the After easing further early in January, effects of the U.S. import surcharge, the Canadian dollar settled at around the Canadian Government approved a plan $0.99% through the rest of that month under which the General Adjustment As­ and most of February. A resumption of sistance Board would be authorized to short-term capital flows to Canada tended guarantee a total of Canadian $150 mil­ to offset the seasonal weakness of Canada’s lion of bank loans to qualifying companies current account, leaving the market in anfl to lend directly up to Canadian $8 rough balance. Toward the month-end, million to individual firms. Moreover, on substantial new Canadian wheat sales to November 30 the Bank of Canada re­ the Soviet Union were announced and the duced the chartered banks’ minimum exchange market turned more bullish for secondary reserve ratio from 9 per cent the Canadian dollar. The spot rate was to 8.5 per cent. bid back to the $1.00 level and even higher As other major currencies rose strongly in early March when arbitrage flows to against the U.S. dollar in the second half Canada added to the demand. of November, there was also some inter­ mittent upward pressure on the Canadian EURO-DOLLAR dollar, but heavy buying of Canadian dol­ Euro-dollar rates were bid up sharply in lars did not develop until the conclusion late April and early May of last year, in early December of the Group of Ten largely reflecting heavy speculation in meeting in Rome. At first, the Bank of continental European currencies. In June Canada resisted a further increase in the and July there was some unwinding of rate but subsequently allowed it to rise. those speculative positions and Euro­ In heavy demand, the Canadian dollar dollar rates gradually declined during was pushed to as high as $1.00% and re­ June and most of July. But as the run mained strong until the December 17-18 on the dollar developed in late July and meeting of the Group of Ten. early August, Euro-dollar rates were The communique at the conclusion of pushed upward rapidly, and on August 17 the Washington meeting reported that (the settlement date for currencies pur­ general agreement had been reached on chased on Friday, August 13), 3-month the pattern of exchange rates and noted deposits were at 10 per cent per annum, that “Canada intends temporarily to 7-day funds at 20 per cent, and overnight maintain a floating exchange rate and in­ funds reached above 40 per cent. After tends to permit fundamental market forces the initial squeeze was met, Euro­ to establish the exchange rate without in­ dollar rates receded somewhat. Neverthe­ tervention except as required to maintain less, with the widespread uncertainties orderly conditions.” The Canadian mar­ over the ultimate outcome of the negotia­ kets were open on Monday, December tions to resolve the many issues raised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FOREIGN EXCHANGE OPERATIONS 255 YIELD COMPARISONS branches of U.S. banks earlier in the year. 3-MONTH MATURITIES EXCEPT WHERE NOTED By the end of September, only some $1 PER CENT billion of the Treasury’s certificates re­ mained outstanding. Most of the funds repaid by the Treasury were not returned to the Euro-dollar market, however, since U.S. banks acted to maintain their reserve-free Euro-dollar bases by increasing their own liabilities to branches from about $1 billion in mid-August to around $2.5 billion by the end of September. Among European official borrowers, the Italian Electricity Authority (ENEL) an­ nounced in September it would prepay $300 million of its earlier longer-term borrowing in the Euro-dollar market. 1971 1972 In October, following a brief quarter- Weekly averages of daily rates. end squeeze, Euro-dollar rates began an across-the-border retreat that lasted into by the U.S. measures of August 15, early November. This reflected in part the investors stayed short of dollars. Euro­ continued repayments of official borrow­ dollar rates consequently remained several ings, as the U.S. Treasury completed percentage points above those on com­ the runoff of its special certificates while parable investments in national financial ENEL and other Italian official entities centers. liquidated indebtedness. More important­ In August the U.S. Treasury began to ly, however, Euro-dollar rates reacted repay the $3 billion of special certificates to a fairly widespread decline in short­ that had been placed with the foreign term interest rates, especially in the United States. By early November, the LIABILITIES OF U.S. BANKS TO FOREIGN BRANCHES 3-month Euro-dollar rate had dropped back below 6 per cent, and at the short end of BILLIONS OF DOLLARS the maturity range, the overnight Euro­ dollar rate had fallen into line with, and occasionally below, the Federal funds rate in the United States. Taking advantage of this increased availability of Euro-dollars, large U.S. banks began some modest re­ building of their borrowings, and from the end of September through mid-November, the banks’ liabilities to their branches rose by nearly $900 million, to $3.4 billion. Nevertheless, the market remained LIABILITIES fairly thin, as many investors preferred JAN. MAR. MAY JULY____SE NOV. JAN. MAR. other currencies to dollars, given the risk 1971 ■ 1972 that exchange rates might move up sharply Data as of Wednesday of each week. “Special securities” are against the dollar. branch holdings of special Treasury and Export-Import Bank securities. Such an exchange rate movement did Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 FEDERAL RESERVE BULLETIN □ MARCH 1972 in fact develop later in November and Commerce announced that U.S. corpora­ early December, as expectations began to tions could postpone until the end of grow that a parity realignment might soon February 1972 the report on their positions be reached and that it would result in a for the end of 1971. more substantial change in exchange Early in 1972 there was a further rates against the dollar than previously decline in short-term interest rates in the had been anticipated. Once again the United States and other major countries. Euro-dollar market began to tighten, with During this period demand for Euro­ the 3-month rate reaching as high as 7 dollars was slack, reflecting in part the per cent late in November. Shorter rates slower pace of growth of economic activity rose as well, and as the overnight rate in Europe. At the same time, banks in rose well above the Federal funds rate the United States continued to run off (U.S. rates were continuing to decline, their Euro-dollar liabilities, and other with a second lA percentage point cut in borrowers—again particularly the Italian Federal Reserve discount rates starting official entities—were also liquidating on December 13), U.S. banks once Euro-dollar debts. Consequently, Euro­ again ran down their liabilities to their dollar rates declined further, and the foreign branches, returning nearly $2 3-month rate settled to about 5 per cent billion to the Euro-dollar market between in late January and held around that mid-November and mid-December. This level through the end of February. By reflow helped mitigate the rise in Euro­ that time, U.S. interest rates had begun dollar rates and, compared with the earlier to firm while rates in several European periods of speculation during the year, the centers were declining, with cuts in cen­ squeeze on the Euro-dollar market in late tral bank discount rates in Germany, November-early December was relatively Belgium, and the Netherlands in late mild. Moreover, there was little evidence February and early March. In addition the of the usual year-end pressures on the German Government imposed a 40 per market, as European banks that normally cent reserve requirement on most foreign bring funds back from the Euro-dollar borrowings by German nonbanking firms; market for window dressing and other these firms had previously been massive positioning at that time were already very borrowers in the Euro-dollar market. liquid in their own currencies. And on Early in March the market remained December 9 the Office of Foreign Direct generally easy and the 3-month rate edged Investment (OFDI) of the Department of down to about 4% per cent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to Congress Statement by Andrew F. Brimmer, Mem­ LONG-RUN TRENDS IN EMPLOYMENT ber, Board of Governors of the Federal Most of this statement is focused on Reserve System, on “Economic Situation economic trends in the black community of Blacks in the United Statesbefore during the last few years. To put this the Joint Economic Committee of the Con­ recent experience in perspective, it might gress, February 23, 1972. be helpful to summarize briefly the over­ all economic progress among blacks in INTRODUCTION the last decade. This progress can be Mr. Chairman and Members of the com­ traced in the trends of the labor force, mittee, I am pleased to appear before employment, and occupational advance­ this committee to discuss recent economic ment. In 1970 there were 9.2 million developments in the black community. Negroes and other races1 in the labor The invitation requested that I “. . . dis­ force—meaning that they were holding cuss . . . the situation of minority groups, jobs or seeking work. This was a rise of particularly blacks, in their attempt to about one-fifth since 1960, a rate of in­ surmount discriminatory barriers to equal crease somewhat faster than for whites employment opportunities. . . .” It is and for the total labor force. However, in that context that I appear to present employment of blacks rose more rapidly my personal views. than it did for all employees (by 22 per On February 9, the Chairman of the cent to 8.4 million for the former com­ Federal Reserve Board appeared before pared with 19.5 per cent to 78.6 million your committee on behalf of the Board for the latter). Expressed differently, as part of the annual hearings on the while blacks represented about 11 per President’s Economic Report. Conse­ cent of the total civilian labor force in quently , I will not travel over that ground both 1960 and 1970, their share of the again. Moreover, the general assessment gains in employment during the decade of the outlook for the national economy was somewhat larger: They accounted for in 1972 has been presented by the Council nearly 12 per cent of the employment of Economic Advisers (CEA), and I am in growth, although they held just over 10 broad agreement with the Council’s con­ per cent of the jobs at the beginning of clusions. the period (Table l).2 Therefore, I will not attempt to present Advancement in the range of jobs held a separate estimate or projection of gross national product (GNP) and its com­ Negroes constitute about 92 per cent of all persons ponents. Instead, within the framework in this group. Other races included are American Indians developed by the CEA, I will (1) review and Orientals. Thus, this statistical series can be taken as an approximate measure of economic trends among recent economic trends in the black com­ blacks. munity and (2) attempt a rough assess­ 2 Copies of tables referred to herein are available ment of the prospects for blacks in the upon request to Publications Services, Division of Administrative Services, Board of Governors of the short run. Federal Reserve System, Washington, D.C. 20551. Digitized for FRASER 257 http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 FEDERAL RESERVE BULLETIN □ MARCH 1972 by Negroes in the last decade was also Nevertheless, as already indicated, the noticeable. This was particularly true of the accelerated movement of blacks out of improvements in the highest paying the positions at the bottom of the oc­ occupations. Between 1960 and 1970 the cupational pyramid did not flow evenly number of blacks in professional and through the entire occupational structure. technical positions increased by 131 per For example, Negroes in 1970 still held cent (to 766,000) while the increase in the about 1.5 million of the service jobs out­ total was only 49 per cent (to 11.1 mil­ side private households—most of which lion). Blacks had progressed to the point require only modest skills. This repre­ where they accounted for 6.9 per cent of sented almost one-fifth of the total— the total employment in these top cate­ about the same proportion as in 1960. gories in the occupational structure in Moreover, the number of blacks holding 1970, compared with 4.4 per cent in 1960. semiskilled operative jobs (mainly in They got just over 9 per cent of the net factories) rose by 42 per cent (to about increase in such jobs over the decade. Dur­ 2.0 million) during the decade, com­ ing this same period, the number of Negro pared with an expansion of only 16.5 per managers, officials, and proprietors (the cent (13.9 million) for all workers. The second-highest-paying category) rose two- result was that blacks’ share of the total thirds (to 297,000) compared to an expan­ climbed from 12 per cent to over 14 per sion of 17 per cent (to 8.3 million) for all cent. Taken together, these two cate­ employees in this category. gories of lower-skilled jobs (chiefly in In the 1960’s black workers left low- factories or in nonhousehold services) paying jobs in agriculture and house­ accounted for a somewhat larger share hold service at a rate two to three times (42 per cent) of total black employ­ faster than did white workers. The num­ ment in 1970 than they did in 1960— ber of black farmers and farm workers when their share was about 38 per cent. dropped by 63 per cent (to 328,000) in In contrast, among all employees the contrast to a decline of about 40 per cent proportion was virtually unchanged—27 (to 3.1 million) for all persons in the same per cent at the beginning of the decade category. Therefore, in 1970 blacks ac­ and 28 per cent at its close. counted for about 11 per cent of em­ While Negroes made substantial pro­ ployment in agriculture, less than their gress during the 1960’s in obtaining share in 1960 when the proportion was 16 clerical and sales jobs—and also regis­ per cent. The exit of blacks from private tered noticeable gains as craftsmen— household employment was even more their occupational center of gravity striking. During the last decade the num­ remained anchored in those positions ber of Negroes so employed fell by about requiring little skill and offering few 34 per cent (to 652,000); the correspond­ opportunities for further advancement. ing drop for all workers was only 21 per At the same time, it is also clear from cent (to 1.6 million). Although roughly the above analysis that blacks who are half of all household workers were black well prepared to compete for the higherin 1960, the ratio had declined to just over paying positions in the upper reaches of two-fifths by 1970. The number of black the occupational structure have made nonfarm laborers declined (by 9 per cent measurable gains. Nevertheless, com­ to 866,000) over the last decade, but the pared with their over-all participation in total number of laborers rose somewhat. the economy (11 per cent of total em­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 259 ployment), the occupational deficit in increasing tendency for discouraged blacks white collar employment—averaging not even to look for jobs. One can make 40 per cent—remains large. a rough judgment of a group’s willing­ Data on occupational distribution .of ness to engage in economic activity by total employment by color in 1971 are tracing its labor force participation rate.3 also shown in Table 1. In general, these For blacks as a group, the participation figures show the mixed job experience of rate has been declining for a number of blacks in the last year. While total em­ years, while it has been rising for whites. ployment rose moderately, the number For example, the rate for blacks fell from of black jobholders declined slightly. 64.5 per cent in 1960 to 60.9 per cent in However, the losses were concentrated 1971; in the same period, the rate for among blue collar workers, as the num­ whites rose from 58.8 per cent to 60.1 ber of Negroes employed in white col­ per cent. These divergent trends were lar jobs continued to expand. Within accelerated during the 1970-71 recession. the blue collar group, the attrition was Particularly in the last half of 1971, the most noticeable in the case of operatives. participation rate for blacks showed con­ This situation was mainly a reflection of sistent declines at a time that the white the continued sluggishness of activity in participation rate was rising—most prob­ the manufacturing sector in which a ably in response to the sizable growth sizable proportion of blacks is employed. in white employment. Discouragement Recent trends in this sector are examined over employment prospects evidently more closely below. has led more blacks to stay out of the labor force during the recovery period RECENT GROWTH OF THE BLACK LABOR than can be explained by longer-term FORCE trends in the age-sex composition of the But before taking up that task, we might black labor force. Consequently, the look briefly at the impact of the recent behavior of labor force participation recession on the black labor force. In rates suggests that the economic situation 1971 there were 9.3 million Negroes and among blacks deteriorated more in 1971 other races in the civilian labor force. compared to whites than might be evident In the same year, the total civilian labor on the surface. force amounted to 84.1 million, so blacks represented 11.1 per cent of the total— SLUGGISH EXPANSION IN JOBS the average for the last decade. For 1971 For the first time in a decade the number as a whole, the black labor force rose by of blacks with jobs in 1971 was below 124,000, compared with a rise of 1.4 that for the previous year. This was not million in the total civilian labor force. the case with whites. The year-to-year Thus, the increase in the black com­ decrease in black employment (while ponent amounted to 8.9 per cent; in the quite modest) was a direct result of the previous year, blacks had accounted for recession and slow recovery in national 12.2 per cent of labor force growth. economic activity in 1970-71. In fact, To a considerable extent, the slower the employment experience of blacks expansion in the number of blacks in the work force reflected the impact of the recession. The latter’s adverse effect on 3The participation rate is defined as the percentage of the civilian noninstitutionalized population age 16 the black community is evident in the and over that is in the civilian labor force. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 FEDERAL RESERVE BULLETIN □ MARCH 1972 during the last 2 years has shown some decline for black teenagers—more than similarity to that recorded during the offset a somewhat faster rise in employ­ 1960-61 business cycle. In general, ment for adult black men than for adult blacks did relatively better than whites white males. However, as mentioned in the 1969-70 recession phase of the above, the participation rate for blacks business cycle and relatively worse in continued its long-run decline in 1970 the 1970-71 recovery stage. while the white participation rate showed In 1971 an average of 8.4 million blacks a slight increase. As a consequence, were holding jobs, representing 10.6 per the unemployment rate for blacks did cent of total civilian employment (which not rise proportionately as much as the amounted to 79.1 million). However, the rate for whites. number of employed blacks in 1971 was Over-all employment increased very about 43,000 below that for the year earlier little in the first half of 1971—although —while total civilian employment was economic activity showed a mild recovery. 490.000 higher. In contrast, in 1970 Continuing to be concerned about infla­ black employment rose by 62,000, ac­ tion and low profit levels, businessmen at­ counting for 8.5 per, cent of the gain of tempted to limit hiring in order to hold 727.000 in total civilian jobs. down labor costs. In the second half Several developments in the national of 1971, total employment rose sub­ economy help to explain the recent ad­ stantially. However, all of the gains were verse black experience on the jobs front. made by whites. By year-end, white At the beginning of the economic slow­ employment was 1,636,000 above the down in 1969, employment cutbacks level in December 1970; black employ­ were most severe in professional jobs ment registered a small decline of 67,000 related to the defense and aerospace over the year. Again, the composition industries. Blacks comprise only a mi­ of the recovery in national economic nute proportion of the labor force in this activity had a direct bearing on the less sector and thus were not affected signifi­ favorable job experience of black workers. cantly. Sectors such as services and The manufacturing sector of the economy government (which employ a higher (which employs a significant proportion fraction of blacks) continued to expand of blacks in blue collar jobs) remained through 1969. Thus, in the initial stages weak throughout 1971. In addition, of the recent business cycle, blacks were government employment (a sector where less affected than were whites—both by blacks are well represented) grew more general cyclical forces and by the special slowly than it had in recent years prior situation in the defense and aerospace to 1971. An examination of the recent industries. trends in those industries in which blacks In 1970 employment cutbacks in the are heavily represented provides some economy as a whole were more wide­ little-noted insights into the situation of spread as over-all economic activity blacks in the national economy. declined and as business attempted to control costs. Proportionately, employ­ PRIVATE INDUSTRY PERFORMANCE AND ment grew slightly less for blacks than BLACK EMPLOYMENT for whites in 1970. A smaller rise in As indicated above, blacks are heavily employment for adult black women than dependent on the manufacturing sector for adult white women—and an actual for employment. This is especially true Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 261 of black men. It is hard to obtain detailed represented 10.3 per cent of the 28.9 mil­ statistics to trace the pattern of black em­ lion workers reported by these companies. ployment. The main source of employ­ About 1.4 million (48.7 per cent) of the ment data by industry is the series of re­ 3.0 million black jobholders reported were ports collected from private establishments employed in manufacturing. This propor­ by the Bureau of Labor Statistics (BLS). tion was not appreciably different from This series does not include a racial that for all EEOC-reported jobholders breakdown of the number of workers (50.3 per cent). However, since the reported. In addition, BLS publishes em­ EEOC reports are more complete for ployment data collected by the Bureau manufacturing than for other sectors, of the Census in its household survey. these ratios tend to overstate the actual This series as published does include degree of reliance on manufacturing as a estimates of employment by demographic source of jobs. characteristics—such as age, sex, and A somewhat more balanced picture of race. However, while an industry distribu­ the industry distribution of black employ­ tion of employment can be calculated by ment is provided by the BLS household BLS on the basis of the data collected, data. As shown in Table 3, when the more such calculations are not published. comprehensive statistics are analyzed, Finally, the Equal Employment Op­ about 23.0 per cent of black jobholders in portunity Commission (EEOC) collects 1971 were employed in manufacturing. employment data once each year from The corresponding proportion for total em­ the larger companies under the Civil ployment was 24.7 per cent. The extent to Rights Act of 1964. At my request, BLS which blacks—compared to all workers— has given me permission to use the ratios have found jobs in other industries is also calculated from the household data show­ shown in Table 3. For example, the ing blacks as a percentage of total em­ proportion of the black work force em­ ployment in each industry. Using the ployed in transportation and public utilities same data, I have calculated the per­ is roughly the same as that for all workers centage distribution, by broad industry —6.6 per cent and 6.7 per cent, respec­ groupings, of total and black employ­ tively. However, a sizable divergence is ment. Data from these three sources are evident in the trade field, in which 14.2 presented in Tables 2, 3, and 4. per cent of blacks—in contrast to 20.1 per The heavy dependence of blacks on cent of the total—had found jobs. A factory jobs is clearly suggested in the smaller (but still noticeable) divergence EEOC data shown in Table 2. In 1970 can be seen in the case of finance, insur­ (the most recent year for which statis­ ance, and real estate—which accounted tics are available) about 3.0 million blacks for 5.2 per cent of total employment com­ were on the payrolls of private employers pared with 3.6 per cent of black employ- (mainly large companies) reporting under the EEOC requirements.4 This number ployment in some industries. About three-quarters of total employment in manufacturing, transportation, communication, and electric and gas utilities are re­ 4These data are reported annually to the U.S. Equal ported, and well over one-half of the total in mining, and Employment Opportunity Commission under Title VII in finance, insurance, and real estate is covered. On the of the Civil Rights Act of 1964. The statistics do not other hand, the reports cover only about one-third of total cover all employment; they have only limited coverage employment in wholesale and retail trade, and in serv­ of small firms, and no reports for governments and edu­ ices. Just under one-fifth of contract construction employ­ cational institutions are included. However, the EEOC ment is covered. Coverage and other characteristics of the reports do cover a substantial proportion of total em- EEOC data are discussed further in the notes to Table 2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 FEDERAL RESERVE BULLETIN □ MARCH 1972 ment. On the other hand, blacks were of 491,000 (0.6 per cent), but the number overly represented in services (29.1 per of factory workers dropped further—by cent of employed blacks vs. 20.1 per 761,000 (or by 3.9 per cent). Over this cent of the total). 2-year period, total factory employment Within manufacturing blacks were declined by 1.5 million, a decrease of 7.7 found employed particularly in heavy in­ per cent. dustry. They were found especially in in­ The industries in which blacks have sig­ dustries producing transportation equip­ nificant representation experienced even ment (mainly automobiles); in primary larger setbacks: transportation equipment metals (particularly steel); in electrical recorded a 2-year decline of 15 per cent; equipment; in food and related products; nonelectrical machinery, 12 per cent; and in textile mill products. While blacks electrical machinery, 11.5 per cent; and held about 9.9 per cent of the total jobs primary metals, 10 per cent. in manufacturing as a whole, in several In contrast, several sectors which pro­ industries, their share of the jobs was con­ vide a smaller proportion of all black jobs siderably higher. For example, as shown continued to expand total jobs during the in Table 4, in 1971 their shares were: recent recession. For example, total em­ tobacco, 32.5 per cent; lumber and wood ployment in wholesale and retail trade products, 20 per cent; primary metals, rose by nearly 4 per cent during the 2 14.4 per cent; apparel, 13.2 per cent; years 1970 and 1971. The gain in fi­ food processing, 12.4 per cent; stone, clay nance, insurance, and real estate amounted and glass, 11.9 per cent; transportation to 7 per cent. Employment in services equipment, 11.6 per cent; and furniture, expanded by 6 per cent in the same 11.5 per cent. period. However, in each of these industry In weighing these figures on black em­ groups (except services) blacks gen­ ployment in manufacturing, however, one erally have a smaller share of the total jobs should not conclude that blacks have than they have in the economy as a whole. found an equal chance for advancement On balance, the continued growth of in the Nation’s factories. This is far from total employment in the trade and service the case. To a considerable extent, the sectors cushioned the impact of the 1970industries with large numbers of black 71 recession in the economy as a whole. employees are those in which numerous But blacks did not share proportionately jobs are unpleasant and routine or which in these gains because they are generally require much physical strength or long under-represented in the highly paid ex­ endurance. Moreover, blacks are typi­ panding sectors and over-represented in cally found in the lower paid blue collar low-paid service activities or in those occupations requiring only limited skills. manufacturing industries which were Given this exceptional dependence of stagnant or declining. blacks on factory jobs, the sluggishness in manufacturing during the last 2 years BLACKS IN GOVERNMENT JOBS was bound to have a serious impact on the In the case of public sector employment, black community. In 1970, while total blacks have had a mixed experience over employment rose by 727,000 (or by 0.9 the last 2 years. As mentioned above, per cent), factory jobs declined by 768,000 blacks constitute an above-average propor­ (or by 3.8 per cent). Last year, total em­ tion of the persons employed in govern­ ployment registered another modest gain ment service. For example, in May 1971 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 263 there were 389,000 blacks employed in decision to reduce Federal Government civilian jobs in the Federal Government. employment by 5 per cent during the cur­ This represented 15 per cent of the 2.6 mil­ rent fiscal year, one might ask whether lion civilians on the Federal payroll at that blacks are likely to be exposed to a much time. In contrast, blacks accounted for higher rate of attrition than that faced 10.6 per cent of all civilian employees by the average white employee. An in­ in the country in the same month. More­ formal request to the Civil Service Com­ over, while Federal employment provided mission for data to assess this possibility 3.3 per cent of the total civilian jobs, did not yield the necessary statistical in­ about 4.6 per cent of the blacks holding formation—although the Commission has civilian jobs were on the Federal payroll. no indication that the cutback in Govern­ In the case of State and local governments ment employment is affecting blacks (many of which have substantial numbers adversely. of blacks in their jurisdiction) the per­ Simultaneously, the Federal Reserve centage of blacks among all public em­ Banks were asked to review the situation ployees may be even higher than it is in within the Federal Reserve System. The the Federal Government. results of this survey show that, between Given this situation, the downtrend in December 1970 and December 1971, employment in the Federal Government total Bank employment increased by 1.7 in the last 2 years seems to have had a per cent, while black employment rose mixed effect on blacks. In the two by 3.7 per cent. However, the results also calendar years 1970 and 1971, total indicated that the turnover rate among civilian employment in the Federal Gov­ black employees was nearly IVi times as ernment dropped by 93,000, a decline of high as that for all employees (30 per 3.3 per cent. Here, of course, the cutback cent vs. 21 per cent). The turnover rate in employment reflected a conscious was particularly high among blacks in effort to pare the level and scope of Gov­ the lower grades, where so many of them ernment activities—and was not a by­ are concentrated. The turnover rate for product of the recession. Exactly how blacks in grades 1-5 was 40 per cent vs. 37 these reductions have affected blacks per cent for all employees. In contrast, cannot be determined because of a lack in grades 6 and over, the turnover rate for of data for 1971 as a whole. Between blacks was below that for all employees, May 1970 and May 1971 total Federal 10 per cent vs. 13 per cent. employment declined 15,000, and Negro These data for the Federal Reserve employment declined 798. This net de­ Banks are probably indicative of the be­ cline among blacks reflected a drop in havior of black employment in the Fed­ black employment in blue collar jobs eral Government as well. So, when the and in lower grade levels of the Postal census of Federal employment is con­ Field Service. Blacks made further gains ducted later this year, the results should in both the higher grades of the postal be studied to see whether the high turn­ service and in civil service white collar over among blacks has been translated jobs. into high attrition rates—and thus into a Yet, we know that blacks are still decline in the percentage of blacks em­ heavily concentrated in the lower grades ployed in the Federal Government. of the Federal Service where turnover is In the case of State and local govern­ typically high. Thus, in the light of the ments, the number of workers on their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 FEDERAL RESERVE BULLETIN □ MARCH 1972 payrolls expanded by 744,000 (7.9 per employed workers declined from 20.2 cent during the 2 years 1970 and 1971. per cent in 1969 to 18.4 per cent in both Most of this growth was at the local 1970 and 1971. Of course, this decline level—especially in large urban areas reflected the fact that the number of un­ with sizable black populations. Against employed whites rose much faster in 1970 this background, one would have expected than was the case in the black community. blacks to obtain a significant share of the And it is noteworthy that by the end of rise in public service employment at the 1971, the proportion had risen back to State and local level. 19.0 per cent. Nevertheless, while blacks In conclusion, when these different represented 11 per cent of the labor force, employment trends are pulled together, they still accounted for nearly one-fifth a fairly clear—but far from comfortable— of total unemployment in 1971. picture emerges: the depressed conditions Of the total rise in black unemployment in manufacturing industries (only par­ over the 1970-71 period, half was account­ tially offset by growth in other sectors) ed for by adult men, a third by adult have had a seriously adverse effect on women, and a sixth by teenagers. Unem­ black employment in the last two years. ployment of adult men and teenagers The net result has been a halt in the rose more rapidly in 1970, and unem­ vigorous growth of black employment ployment of adult women rose more registered during the last half of the rapidly in 1971. The cutback in manu­ 1960’s. facturing jobs accounts for much of the rise in black adult male unemployment TREND OF UNEMPLOYMENT in the recession year 1970. In 1971 adult In 1971 an average of 919,000 blacks females increased their participation in were unemployed; this represented 9.9 per the labor force slightly (most likely in an cent of the black civilian labor force. effort to improve family income at a time In the case of whites, unemployment when many men were out of work), but averaged 4.1 million, equivalent to an the slack job market resulted in increased unemployment rate of 5.4 per cent. For female unemployment. Black teenagers, all groups combined, unemployment in on the other hand, significantly reduced 1971 averaged 5.0 million, or 5.9 per cent, their participation in the labor force after of the total civilian labor force. Over the experiencing rising joblessness in 1970, last 2 years—and reflecting the impact of and, thus, their unemployment did not the recession—the total number of un­ rise as rapidly in 1971. employed workers rose by 2.2 million, A brief comparison of the unemploy­ an increase of nearly four-fifths. Among ment experience during the recent cyclical blacks, unemployment climbed by 348,- period and the recession and recovery years 000, a rise of more than three-fifths. of 1960-61 points up several significant Almost 60 per cent of the 2-year rise in facts. As noted earlier, blacks fared rela­ total unemployment occurred in 1970— tively better than whites in the recession which encompassed most of the down­ phase of the cycle in both periods. The ward phase of the recession. But in the level of black unemployment rose 26 per case of blacks, the increase in jobless­ cent from the peak quarter to the trough ness was about evenly divided between quarter in the 1960-61 period, compared 1970 and 1971. On the other hand, black to a rise of 32 per cent for whites. In the unemployment as a proportion of all un­ recent period, the level of black unem­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 265 ployment rose 50 per cent from peak to (age 16-19) grew from just over 7 per trough, compared with a rise of almost cent to just over 8 per cent of the black 70 per cent for whites.5 civilian labor force. However, because In both periods the ratio of black to of their lack of training and work ex­ white unemployment rates declined dur­ perience, teenagers have remained at ing the recession phase of the cycle. about 6 per cent of black employment. As From the mid-1950’s through the 1960’s a result, teenagers accounted for 27 per (except for 1965), the black unemploy­ cent of black unemployment in 1971, com­ ment rate was more than double the white pared with 16 per cent in 1961. rate. The black-white ratio was still 2.06 Clearly, the high and persistent level of in 1969, but it declined to 1.82 in 1970. black unemployment is a serious matter, In the first year of recovery from the and I will return to the subject in the closing trough in 1970, whites fared relatively section of these comments. better than blacks as evidenced by a rise in the ratio of black to white unemploy­ INCOME TRENDS IN THE BLACK ment rates from 1.64 in November 1970 to COMMUNITY 2.00 in January of this year. However, of Another way of looking at the economic equal note is the fact that in the recent situation of blacks is to examine their recovery year, unemployment levels for income. Data for 1970 (the most current both blacks and whites continued to rise year available) show that total money (by 11.1 per cent for blacks and by 1.7 income for black families and unrelated per cent for whites), whereas in the first individuals was $42 billion. This was year of recovery in the earlier period, 6.5 per cent of total money income, which unemployment levels declined (by 8.7 amounted to $649 billion in that year. per cent for blacks and by 19.6 per cent This share should be weighed against the for whites). The continued low rate of fact that blacks compose about 11.3 per activity in the manufacturing sector of the cent of the total population. The median economy and the only modest growth in family income of blacks in 1970 was other sectors have resulted in a much less $6,516, a rise of 5.3 percent over 1969— dynamic recovery process for employ­ but still only 64 per cent of the white ment in the current period. median income of $10,236. One further difference between the two In general, black families made great cyclical periods which has implications for strides over the last decade in increasing employment prospects is that teenagers their income. Black median family income are a much more important factor in the in 1970 was more than double the level economy today than 10 years ago. Be­ in 1961, which appears to compare tween 1961 and 1971, as a result of a favorably with a rise of 71 per cent for sharp increase in the number of youths white families over the same period. How­ in the total population, black teenagers ever, in absolute terms, black families received an average of $3,720 less than white families in 1970—whereas they 5 It might be noted that the larger rise in unemployment for blacks and for whites in the recent cycle has been due received $2,790 less in 1961. This differ­ in large part to the faster growth of the civilian labor ence in 1970 was equal to 57 per cent of force. This has been a result of the entrance of the members of the postwar baby boom into working age black families’ median income. Thus, groups, the changing working habits of women (par­ although blacks have been gaining rela­ ticularly white women), and the return of numerous Vietnam veterans to civilian life. tive to whites over the decade (and this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 FEDERAL RESERVE BULLETIN □ MARCH 1972 progress does not appear to have been trast to a rise in the average number of seriously interrupted by the recent reces­ earners of white families) may also con­ sion in 1970), they still lag far behind tribute to the observed results. Thus, the average American white family. although income of blacks appears to have A second way of comparing income dif­ held up quite well in the recent period, it ferences is to look at how income is dis­ still lags far behind white income. In tributed among the respective black and addition, averages for blacks as a whole white populations. The most common may disguise a deteriorating situation for way of doing this is to use a statistical lower-income black families. measure (referred to by economists as the “Gini” coefficient) showing how FEDERAL INCOME TAXES PAID BY equally income is distributed within a BLACKS population. If a given percentage of the Another perspective on the economic population receives an equal percentage of situation of blacks is provided by an anal­ the total income, and this holds true for ysis of the Federal income taxes paid by all groups in the population, then the de­ them. I have estimated that Negroes and gree of income inequality would be zero. other races paid about $4.68 billion Calculations of this measure by the Bureau in Federal income taxes in 1969, while of the Census for black and white their income amounted to $41.22 billion. families indicate that black income has White families and individuals received historically been less equally distributed $562.33 billion in income and paid Federal than white family income even though income taxes of approximately $81.92 the differences between the two have nar­ billion. Thus, while blacks and other rowed slightly over the last decade. How­ races constituted about 13 per cent of the ever, in recent periods of declining or population, they received about 6.8 per slow economic growth, the differences cent of the adjusted gross income, in the income distribution for black and filed 11.5 per cent of the tax returns, and white families have increased. This was paid roughly 5.4 per cent of the Federal true during the brief period of declining income taxes in 1969. economic activity in 1967 and also in 1970. This estimate of Federal income taxes In general, this pattern of income dis­ paid by blacks was derived on the basis tribution implies that lower-income black of special tabulations of household sample families receive an even smaller propor­ data collected by the Bureau of the Census tion of total money income than do lower- for its 1969 report on consumer income.6 income white families in periods of re­ Since Dr. Herman Miller and Mr. Roger duced economic growth. Some of the Herriot (both of the Census Bureau) had greater sensitivity of the income of black already devised a means of linking families to cyclical slowdowns may be Census data to Internal Revenue Service explained partially by the fact that a (IRS) statistics relating to Federal income rapidly increasing proportion of black taxes,7 I applied their method to estimate families is headed by females (3% times taxes paid by race. For this purpose, the as many as white families in 1970, com­ pared with 2 Vi times as many in 1960). 6U.S. Bureau of the Census, Current Population The fact that the average number of Reports, Series P-60, No. 75,“Income in 1969 of Fami­ lies and Persons in the United States,” 1970. earners in black families has actually been 7See their paper, “Who Paid Taxes in 1968” declining in the last few years (in con­ (Mimeo), March 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 267 special tabulations by the Census Bureau that Negroes and other races received were required. about 6.8 per cent of the adjusted gross While the method devised by Miller and income and paid about 5.4 per cent of the Herriot (and used by me) has limitations,8 Federal income taxes in 1969 should not it seems accurate enough to yield reason­ be surprising. The reason is that blacks able results. For example, IRS reports have a lower percentage of persons in show that there were 75.8 million re­ the upper income ranges. The special turns filed in 1969.9 Of this total, 63.7 Census calculations show that, for the million returns were taxable, and they income measure used for tax purposes, represented $603.5 billion in adjusted 41 per cent of returns filed by Ne­ gross income. From this income, earners groes and other races were in the lowest paid $86.6 billion in taxes. Thus, the income category, compared to 27 per cent task was to estimate the proportion and for whites. In the upper income brackets, amount of these taxes that were paid by 14 per cent of the black returns fell in the black and white earners separately. The $10,000 or more class, while there were application of the Miller-Herriot method 34 per cent of the white returns in this produced the following distribution of range. Thus, when the progressive tax returns in 1969. rates are applied to each group, the whites paid proportionately more.10 Percentage distribution Finally, these estimates represent only of returns1 one tax. Although the Federal personal Adjusted gross in c o m e ---------------------------------- Negroes and income tax is the largest single revenue other races Whites source, it is also among the most progres­ Less than $3,000................................. 41 27 $3,000-$6,000 ................................... 24 17 sive of taxes. State and local sales taxes $6,000-$ 10,000 ................................. 20 23 $10,000-$ 15,000 .............................. 9 20 and property taxes tend to hit the lower Over $15,000 ..................................... 5 14 income groups proportionately more than 1 Totals do not add to 100 because of rounding. the higher income groups. For the year 1969, 36 per cent of all government reve­ When these percentages are applied to nue was from State and local taxation. the actual returns reported by the IRS, Moreover, social security taxes probably the estimates of taxes paid by blacks and hit black families much harder than white whites separately are obtained. The fact families. This is suggested by several considerations: black incomes are lower, 8For example, capital gains are not recorded in the and the participation rates are higher Census data, but they do play an important part in the for black families. This means that calculation of Federal income taxes. However, this may be indirectly compensated for by an adjustment in the minority groups have more multiple Census data to account for trusts and under-reported income in the sample. Furthermore, we found that our earners than white families. Combined estimates of dollar amounts of taxes and adjusted gross with the fact that social security taxes income are higher than the actual figures—since there is some income that is simply not reported to the IRS. Our adjusted gross income was 3 per cent above the actual IRS figures. The amount of taxes paid varied by method of estimation. The Miller-Herriot Method gave a figure 9 per cent above the reported level. A second 10Again, it must be remembered that these are esti­ method of estimation that uses effective tax rates (instead mates and subject to error. In the case of the percentage of of average tax by return) gives taxes within 4 per cent returns in the income ranges, we may err on the low of the amount actually reported. The estimated per­ side rather than on the high income side because all centages of taxes paid by race do not vary with the persons reporting money income of $1 or more are procedure used. included in the Census sample. Some of these are 9 U.S. Internal Revenue Service, Statistics of Income taken out when finding adjusted gross income but 1969, Individual Tax Returns. probably not all. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 FEDERAL RESERVE BULLETIN □ MARCH 1972 have an income cut-off point, the families I have been particularly interested in of low-earning multiple earners will have trying to gauge the prospects for blacks. to pay more than single earners. In general, from numerous conversations Consequently, when other taxes are I have had with businessmen, I get the combined with Federal income taxes, the impression that the environment in indus­ gap between income received and Fed­ try today is much more hospitable toward eral income taxes paid by blacks (6.8 per the hiring and upgrading of blacks than cent vs. 5.4 per cent) is probably narrowed it was even a few years ago. At the same considerably. time, I also get the feeling that, although many of the leaders in industry are very THE ECONOMIC OUTLOOK FOR BLACKS conscious of the need to promote equal Given these recent developments affect­ employment opportunity by increasing ing the economic situation of blacks, the their percentage of black employment, question naturally arises about their in many cases, the rehiring of workers prospects in the future. The general eco­ (because of trade union agreements) nomic outlook as contained in the Economic would have to be done on a seniority Report of the CEA and supported by the basis which would generally not favor consensus of private forecasters is for an blacks or other minority groups that are acceleration of real economic growth in still relative newcomers in some sectors. 1972 to somewhere in the neighborhood In some industries in which blacks are of 6 per cent, compared to the 2.7 per cent heavily concentrated, there was a drop rate of growth achieved in 1971. In pat- in the percentage of minority employment ticular, the expected strengthening of ac­ in 1971. This seems to have occurred tivity in the manufacturing sector (in despite the fact that many of the leading which such a large proportion of black companies in some of these industries men have found jobs) is of special in­ are known to have strong programs to terest. Thus, the question to which I wish increase the percentage of minority work­ to address myself at this point is this: ers. This was particularly true in the basic How will this outlook for the national durable goods manufacturing industries economy as a whole affect the black where, as mentioned earlier, blacks are community. heavily represented. A review of the It seems fairly certain that a rise in statistics in Table 4 provided by the manufacturing activity will increase black Bureau of Labor Statistics shows that the employment and income. However, how percentage of employment accounted for large the improvement might be cannot by blacks in the basic durable goods in­ be estimated. On the basis of press reports dustries declined in both 1970 and 1971. —as well as informal soundings among Similar figures (although not included in businessmen—one gets the impression the table) show that the ratio had risen that many manufacturing firms are still steadily since 1962 (the first year data moving slowly in expanding their payrolls. were available). In contrast, the percent­ Among other factors, a strong desire to age of employment accounted for by control costs by meeting increased output blacks in the nondurable goods industries demands through higher productivity continued to increase on average in 1970 rather than higher employment—at least but declined in 1971. The better showing for the present—appears to be moderating in the nondurable industries in 1970 was the pace at which factory jobs are growing. partially a result of the fact that the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 269 nondurable industries showed less of a term, rises in the civilian labor force decline in total employment in 1970 than could well result in continued high levels the durable goods industries. In addition, of unemployment and high unemployment some nondurable goods industries (no­ rates for blacks. tably foods, textiles, and apparel) have As mentioned above, the unemployment been experiencing fairly rapid increases rate for blacks has traditionally been in their proportion of minority employ­ about twice as high as that for whites. ment. However, this pattern conceals the Only in a few years (such as 1965, 1970, fact that some of those industries (such and 1971—none of which was a year of as textiles and apparel which maintained especially vigorous economic growth) their black percentages in the recent has the black-white unemployment ratio period) have been declining industries in been less than 2 to 1. It will be recalled relation to the economy as a whole. Thus, that the general outlook for the economy although the proportion of minority work­ in 1972 presented by the Council of Eco­ ers employed by them has held up quite nomic Advisers does not expect the total well, the actual number of blacks em­ unemployment rate to be below 5 per ployed in these industries may not expand cent by year-end. The unemployment rate rapidly. for blacks was 10.6 per cent in January But on the whole, to the extent that —compared with 5.3 per cent for whites manufacturing industries do participate —a ratio of 2 to 1. So given the outlook in the economic growth expected this for the economy as a whole in 1972, there year, the outcome will have a positive appears to be no basis for expecting blacks impact on black employment. Continued to improve their relative unemployment gains in employment in the service and position in the course of this year. trade industries as well as by State and In my judgment, the single most im­ local governments will also add to an portant contribution that can be made this improvement in black employment. But, year to enable blacks to make further again, this expansion might not be large economic progress is at least to assure the enough to enable the black community to sizable expansion, projected by the CEA, resume the strides in employment and in­ in the national economy in 1972, while at come gains they were beginning to the same time pressing on with the cam­ achieve in the second half of the 1960’s. paign to check inflation. In addition, although employment of blacks can be expected to resume an Statement by Arthur F. Burns, Chairman, upward trend in 1972, it can also be ex­ Board of Governors of the Federal pected that the black labor force will grow Reserve System, before the Committee on more rapidly this year than last. Besides Banking, Housing and Urban Affairs, the longer-term growth in the labor U.S. Senate, February 24, 1972. force based on the rapid growth of the young age groups, the declining participa­ tion rate for blacks (particularly evident The Board of Governors of the Federal in the second half of 1971) can be ex­ Reserve System strongly supports enact­ pected to show a return to more normal ment of the Par Value Modification Act. long-term trends if employment prospects Prompt passage of this bill will fulfill an improve. Thus, even with a more rapid important commitment undertaken by the growth in employment, over the short United States as part of the Smithsonian Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 FEDERAL RESERVE BULLETIN □ MARCH 1972 Agreement reached by the Group of Ten cial markets and place in jeopardy the countries on December 18, 1971. Smithsonian Agreement itself. It is no exaggeration to state that the realignment THE PAR VALUE MODIFICATION ACT of currencies which the Smithsonian The Par Value Modification Act proposes Agreement achieved is absolutely essen­ a new par value for the dollar in the Inter­ tial to the reinvigoration of our foreign national Monetary Fund. We will thus trade and the eventual restoration of have a new official dollar price of gold: equilibrium in our balance of payments. an ounce of gold will in the future be carried on the books at $38 instead of $35 BACKGROUND OF THE SMITHSONIAN as at present. The Act does not deal with AGREEMENT the issue of convertibility, and therefore The international monetary crisis we ex­ does not affect the present suspension of perienced in 1971 was by far the most convertibility of dollars into gold or other severe since World War II. It had its roots international reserve assets. in events that stretch back over many years, The proposed change in the par value during which a persistent deficit devel­ of the dollar will have several financial oped in the U.S. balance of payments. and accounting consequences. First, the The crisis came to a head last summer value of the Treasury’s gold and other when increasingly unfavorable reports on reserve assets will be written up by 8.57 our foreign trade released a wave of specu­ per cent, or about a billion dollars. Second, lation against the dollar that eventually the Treasury will be able to issue new gold engulfed foreign exchange markets. The certificates to the Federal Reserve Banks speculation expressed a growing belief that for this amount, and its cash balance will there would soon have to be a substantial rise to the extent that it does so. Third, the upward revaluation of at least some major dollar value of subscriptions and contri­ currencies against the dollar—or, what butions to several international financial comes to the same thing, that the dollar organizations will need to be increased. would need to depreciate in terms of The net result of the various financial other major currencies. and accounting adjustments, as the Secre­ On August 15, the President announced tary of the Treasury has informed this a new policy for dealing decisively with committee in detail, will somewhat im­ the domestic problems of inflation, in­ prove the Treasury’s cash position and adequate productivity, and unemploy­ leave both budgetary expenditures and the ment, which were weakening confidence over-all dollar assets and liabilities of the in the American economy. Recognizing U.S. Government roughly unchanged. that curbs on domestic inflation would If these consequences were the sole not suffice to restore equilibrium in the results to be expected from the Par Value balance of payments, the President sought Modification Act, there would be no need also to achieve a realignment of cur­ to rush its passage. But much more than rencies and better access to foreign mar­ this is involved. As this committee knows, kets for American producers. To set the the proposed change in the par value of stage for useful international negotia­ the dollar was an integral part of the Smith­ tions, a temporary surcharge was there­ sonian Agreement. Failure to pass prompt­ fore imposed on imports and the con­ ly the Par Value Act could provoke a vertibility of dollars into gold or other renewal of disorderly conditions in finan­ reserve assets was suspended. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 271 As expected, dollar prices of most of the sonian meeting of last December pro­ major foreign currencies rose on the vided for an average appreciation of the exchange markets. Foreign governments, currencies of the other Group of Ten although caught by surprise, soon sought countries against the dollar of about 12 in various ways to adjust to the new per cent. Agreement was also reached on monetary and trade conditions. Some a widening of margins for exchange rate imposed restrictions on inflows of funds variation. Later, a number of other coun­ while permitting their exchange rates tries decided to revalue their currencies to appreciate in a controlled manner. upward against the dollar, but most of the Others resorted to rather comprehensive developing countries have elected to main­ financial controls in an effort to maintain tain their exchange rates against the pre-August 15 exchange rates, at least dollar at the pre-August 15 levels. for trade transactions. Only a few coun­ Trade agreements were recognized by tries permitted their exchange rates to the participants in the Smithsonian Agree­ move more or less freely. ment as relevant to the achievement of The pattern of exchange rates that lasting equilibrium in the international evolved after August 15 thus failed to economy. Negotiations on trade matters meet American objectives. Worse still, of immediate concern to the United States, restrictions on international transactions and which were under way at the time were proliferating, with a few countries of the agreement, have since then been even imposing restrictions or subsidies completed with Japan and the European on trade itself. Businessmen both here and Community—but not with Canada. The abroad faced acute uncertainty regarding new trade measures should improve the the exchange rates and governmental climate for certain U.S. exports. For the restrictions under which trade would be longer run, the prospects are now promis­ carried on in the future. This uncer­ ing for widespread support of com­ tainty aggravated recessionary forces prehensive multilateral negotiations on already evident in Europe and Japan. reducing barriers to trade in both in­ It also affected adversely the profit ex­ dustrial and agricultural products. pectations of American companies engaged For its part in the settlement, the in foreign operations or foreign trade, United States agreed to drop the import thereby inhibiting investment expendi­ surcharge and related provisions of the tures and economic expansion in the investment tax credit, and to facilitate United States. the realignment of exchange rates by pro­ In these circumstances, the dangers posing to Congress a change in the par were growing of a recession in world value of the dollar in terms of gold. economic activity, of increasing recourse Thus, the Par Value Modification Act to restrictions on international transac­ is before you to honor a critical com­ tions, of a division of the world economy mitment made in behalf of the U.S. into restrictive blocs, and of serious politi­ Government at the Smithsonian meeting. cal frictions among friendly nations. The American negotiators would have Prompt resolution of the crisis was clearly preferred to achieve the desired apprecia­ necessary, and intensive international dis­ tion of foreign currencies without doing cussions therefore got under way in the anything about the official dollar price of autumn of 1971. gold. Other countries, however, refused The settlement negotiated at the Smith­ to countenance such a passive role by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 FEDERAL RESERVE BULLETIN □ MARCH 1972 the United States in a multilateral adjust­ reserves is now a different entity from ment of exchange rates. gold that is bought and sold in free Active participation by the United markets for industrial, artistic, or hoard­ States in the exchange rate realignment ing purposes. In particular, the market was expected by other countries for price of gold has no bearing on the change various reasons. Some countries regarded in the official price of gold proposed it as politically or financially unacceptable in the Par Value Modification Act. to reduce the price of gold in terms of their own currencies—as would have EFFECTS OF THE SMITHSONIAN been required if the exchange rate re­ AGREEMENT alignment had left the par value of the Looking to the future, let me turn briefly dollar in terms of gold unchanged. And to the probable effects of the Smithsonian virtually all countries took the position Agreement. Since dollar prices of foreign that no nation should be immune from currencies are now substantially higher changing its par value when its balance than before, the growth of our imports of payments is in disequilibrium. In our will tend to slacken and domestic pro­ judgment, a negotiated realignment of duction will be stimulated. On the other exchange rates would have been un­ hand, the lower price of dollars abroad attainable if the United States had refused will make it possible for our exporters to to consider a change in the par value of quote lower prices in terms of foreign the dollar. currencies. Similarly, the lower price of As already noted, the Par Value Modifi­ dollars will tend to stimulate foreign cation Act proposes an increase in the investments and travel in the United official dollar price of gold from $35 to States. $38 an ounce, that is, by 8.57 per cent. There is thus every reason to expect This exact increase reflects a compromise the realignment of exchange rates to outcome of the negotiations on the re­ bring about, in time, a substantial im­ alignment of exchange rates. A price provement in our foreign trade balance significantly higher than $38 per ounce and in our over-all balance of payments. was never seriously considered. An in­ Just how large the improvement will be, crease amounting to less than 8.5 per and how long it will take for the full cent would have failed to bring forth a improvement to be realized, cannot be realignment of exchange rates as large as predicted with certainty. The experience the readjustment that was finally ac­ of other countries indicates that large cepted. The primary objective of the exchange rate changes will produce large U.S. negotiators at the Smithsonian shifts in the balance of payments; but it meeting was to achieve a substantial also indicates that 2 years or so may need upward revaluation of the currencies of to elapse before the full extent of the other industrial countries against the favorable shift is realized. dollar, and this result was achieved. While the Smithsonian realignment It should be noted in passing that under will have its largest effects on our ex­ the two-tier system for gold, agreed to ports and imports, there should also be in March 1968, the official price of favorable effects on other components monetary gold and the free market price of the balance of payments, including of gold are effectively separated. For capital flows to and from the United all practical purposes, gold in official States. Such capital flows have already Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 273 been affected. The enormous outflow of settling international accounts. Various speculative funds from the United States proposals for modifying the operations came to an end when the Smithsonian of the International Monetary Fund re­ Agreement was announced. Since Decem­ quire study and discussion. The circum­ ber 18, there has been a small net return stances under which the dollar may again flow of funds. be convertible into international reserve Besides serving to reinvigorate our assets will have to be reviewed carefully. foreign trade and otherwise improve And determined new efforts will be re­ the balance of payments, the Smithsonian quired to reduce impediments to the Agreement has increased confidence both international flow of goods, services, at home and abroad in the stability of the and capital. world economy. This confidence will be The issues are many and complex. buttressed by passage of the Par Value It will take time to resolve them. But Modification Act. the unfinished business of international monetary reform requires that we get on with the job without delay. Early action UNFINISHED BUSINESS by the Congress on the bill before you The Smithsonian Agreement provided will set the stage for much needed pro­ not only for a realignment of exchange gress in both the international monetary rates and other measures of immediate and international trade areas. concern, but also “that discussions should be promptly undertaken, particularly in the framework of the IMF, to consider CONCLUDING COMMENT reform of the international monetary I have discussed at some length the system over the longer-term.” This un­ Smithsonian Agreement because it has finished business is most important. If given rise to the present hearing. But I we are to avoid a repetition of crises cannot conclude this statement without while preserving a monetary framework warning that neither the Smithsonian conducive to the healthy expansion of Agreement, nor passage of the bill before trade and investment, we must work you, nor any international monetary or with other countries to build a new and trade reforms that may follow, can of stronger international economic order. themselves do more than move us toward In the area of exchange rates, the the objectives of renewed vigor in foreign wider margins agreed to in December trade and equilibrium in the balance of should prove helpful, especially in mod­ payments. erating short-term capital flows and there­ To assure success in these objectives by permitting somewhat greater scope for of foreign economic policy, we must have differences in interest rates among coun­ skillful and fully responsible management tries. For the longer run, procedures for of monetary and fiscal affairs. The ob­ changing par values will need to be jectives of our foreign economic policy flexible enough to prevent the build-up and of our domestic economic policy of large and persistent imbalances in are interdependent. For the sake of both trade and payments among countries. the one and the other we will need to con­ A searching re-evaluation is also needed centrate on stepping up sharply the pro­ of the roles to be played by gold, reserve ductivity of our resources and on re­ currencies, and Special Drawing Rights in gaining prosperity without inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 FEDERAL RESERVE BULLETIN □ MARCH 1972 Statement by Arthur F. Burns, Chairman, Treasury’s cash position and leave both Board of Governors of the Federal Reserve budgetary expenditures and the over-all System, before the Committee on Banking dollar assets and liabilities of the U.S. and Currency, House of Representa­ Government roughly unchanged. tives, March 2, 1972. The Federal Reserve System will be affected by the financial and accounting adjustments in two ways. First, the Treas­ The Board of Governors of the Fed­ ury will be able to issue new gold cer­ eral Reserve System strongly supports tificates to the Federal Reserve Banks in enactment of the Par Value Modifica­ an amount equal to the increment in the tion Act. Prompt passage of this bill will book value of the Treasury gold stock. fulfill an important commitment under­ To the extent that it does so, the Treasury’s taken by the United States as part of the cash balance will rise. A subsequent re­ Smithsonian Agreement reached by the turn of its cash balance to previous levels Group of Ten countries on December 18, would of itself result in an increase of 1971. bank reserves, but this increase could be offset—in whole or in part—by Federal THE PAR VALUE MODIFICATION ACT Reserve open market operations. The Par Value Modification Act pro­ The other effect on Federal Reserve poses a new par value for the dollar in transactions and accounts will occur in the International Monetary Fund. We connection with settlement of commit­ will thus have a new official dollar ments under the reciprocal currency ar­ price of gold: an ounce of gold will in rangements with foreign central banks. the future be carried on the books at $38 Use of a “swap” arrangement by the instead of $35 as at present. The Act does Federal Reserve entails an obligation to not deal with the issue of convertibility, deliver a specified amount of foreign and therefore does not affect the present currency at a future date. Similar com­ suspension of convertibility of dollars into mitments have been undertaken by the gold or other international reserve assets. Treasury on its debt securities denominated The proposed change in the par value in foreign currencies. At the present of the dollar will have several financial time, the Federal Reserve has outstand­ and accounting consequences. The value ing foreign commitments of $2.86 billion, of the Treasury’s gold and other reserve Inasmuch as prices in U.S. dollars of the assets will be written up by 8.57 per currencies that are affected—namely, cent, or about a billion dollars. The dollar Swiss francs, Belgian francs, pounds ster­ value of subscriptions and contributions ling, and German marks—have risen since to several international financial organiza­ the swap drawings were made, there will tions will need to be increased. And be a cost to the Federal Reserve— there will be an increase in the dollar presently estimated at less than $200 value of certain Treasury and Federal million—of liquidating these drawings. Reserve liabilities connected with opera­ The purpose of the swap transactions tions in foreign currencies. carried out in 1971, as in earlier years, The net result of the various financial was to defer or reduce declines in reserve and accounting adjustments, as the Secre­ assets that might otherwise have occurred. tary of the Treasury has informed this The losses to be taken when the swaps committee, will improve somewhat the are settled will reduce the earnings of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 275 the Federal Reserve System that are speculation expressed a growing belief that turned over to the Treasury. But against there would soon have to be a substantial this loss the Treasury may have a roughly upward revaluation of at least some major offsetting profit on the gold and other currencies against the dollar—or, what reserve assets which it still holds because comes to the same thing, that the dollar of the willingness of foreign central would need to depreciate in terms of banks to accept Federal Reserve swap other major currencies. drawings instead of demanding reserve On August 15, the President announced assets from the Treasury. a new policy for dealing decisively with the domestic problems of inflation, in­ adequate productivity, and unemploy­ NEED FOR PROMPT LEGISLATION I have so far focused attention on the ment, which were weakening confidence financial and accounting consequences in the American economy. Recognizing of the Par Value Modification Act. If that curbs on domestic inflation would these were the sole results to be ex­ not suffice to restore equilibrium in the pected from the bill, there would be no balance of payments, the President sought need to rush its passage. But much more also to achieve a realignment of cur­ than this is involved. rencies and better access to foreign mar­ As this committee knows, the proposed kets for American producers. To set the change in the par value of the dollar stage for useful international negotia­ was an integral part of the Smithsonian tions, a temporary surcharge was there­ Agreement. Failure to pass promptly fore imposed on imports and the con­ the Par Value Act could provoke a re­ vertibility of dollars into gold or other newal of disorderly conditions in financial reserve assets was suspended. markets and place in jeopardy the Smith­ As expected, dollar prices of most of the sonian Agreement itself. It is no exaggera­ major foreign currencies rose on the tion to state that the realignment of exchange markets. Foreign governments, currencies which the Smithsonian Agree­ although caught by surprise, soon sought ment achieved is absolutely essential to in various ways to adjust to the new the reinvigoration of our foreign trade monetary and trade conditions. Some and the eventual restoration of equili­ imposed restrictions on inflows of funds brium in our balance of payments. while permitting their exchange rates to appreciate in a controlled manner. BACKGROUND OF THE SMITHSONIAN Others resorted to rather comprehensive AGREEMENT financial controls in an effort to maintain The international monetary crisis we ex­ pre-August 15 exchange rates, at least perienced in 1971 was by far the most for trade transactions. Only a few coun­ severe since World War II. It had its roots tries permitted their exchange rates to in events that stretch back over many years, move more or less freely. during which a persistent deficit devel­ The pattern of exchange rates that oped in the U.S. balance of payments. evolved after August 15 thus failed to The crisis came to a head last summer meet American objectives. Worse still, when increasingly unfavorable reports on restrictions on international transactions our foreign trade released a wave of specu­ were proliferating, with a few countries lation against the dollar that eventually even imposing restrictions or subsidies engulfed foreign exchange markets. The on trade itself. Businessmen both here and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 FEDERAL RESERVE BULLETIN □ MARCH 1972 abroad faced acute uncertainty regarding new trade m easures should im prove the the exchange rates and governm ental clim ate for certain U .S. exports. For the restrictions under w hich trade w ould be longer run, the prospects are now prom is­ carried on in the future. This uncer­ ing for w idespread support of com ­ tainty aggravated recessionary forces prehensive m ultilateral negotiations on already evident in Europe and Japan. reducing barriers to trade in both in­ It also affected adversely the profit ex­ dustrial and agricultural products. pectations of A m erican com panies engaged For its part in the settlem ent, the in foreign operations or foreign trade, U nited States agreed to drop the im port thereby inhibiting investm ent expendi­ surcharge and related provisions of the tures and econom ic expansion in the investm ent tax credit, and to facilitate U nited States. the realignm ent of exchange rates by pro­ In these circum stances, the dangers posing to C ongress a change in the par w ere grow ing of a recession in w orld value of the dollar in term s of gold. econom ic activity, of increasing recourse T hus, the Par V alue M odification A ct to restrictions on international transac­ is before you to honor a critical com ­ tions, of a division of the w orld econom y m itm ent m ade in behalf of the U .S. into restrictive blocs, and of serious politi­ G overnm ent at the Sm ithsonian m eeting. cal frictions am ong friendly nations. The A m erican negotiators w ould have Prom pt resolution of the crisis w as clearly preferred to achieve the desired apprecia­ necessary, and intensive international dis­ tion of foreign currencies w ithout doing cussions therefore got under w ay in the anything about the official dollar price of autum n of 1971. gold. O ther countries, how ever, refused The settlem ent negotiated at the Sm ith­ to countenance such a passive role by sonian m eeting of last D ecem ber pro­ the U nited States in a m ultilateral adjust­ vided for an average appreciation of the m ent of exchange rates. currencies of the other G roup of Ten A ctive participation by the U nited countries against the dollar of about 12 States in the exchange rate realignm ent per cent. A greem ent w as also reached on w as expected by other countries for a w idening of m argins for exchange rate various reasons. Som e countries regarded variation. L ater, a num ber of other coun­ it as politically or financially unacceptable tries decided to revalue their currencies to reduce the price of gold in term s of upw ard against the dollar, but m ost of the their ow n currencies— as w ould have developing countries have elected to m ain­ been required if the exchange rate re­ tain their exchange rates against the alignm ent had left the par value of the dollar at the pre-A ugust 15 levels. dollar in term s of gold unchanged. A nd Trade agreem ents w ere recognized by virtually all countries took the position the participants in the Sm ithsonian A gree­ that no nation should be im m une from m ent as relevant to the achievem ent of changing its par value w hen its balance lasting equilibrium in the international of paym ents is in disequilibrium . In our econom y. N egotiations on trade m atters judgm ent, a negotiated realignm ent of of im m ediate concern to the U nited States, exchange rates w ould have been un­ and w hich w ere under w ay at the tim e attainable if the U nited States had refused of the agreem ent, have since then been to consider a change in the par value of com pleted w ith Japan and the European the dollar. C om m unity— but not w ith C anada. The A s already noted, the Par V alue M odifi­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

STATEMENTS TO CONGRESS 277 cation A ct proposes an increase in the investm ents and travel in the U nited official dollar price of gold from $35 to States. $38 an ounce, that is, by 8.57 per cent. There is thus every reason to expect This exact increase reflects a com prom ise the realignm ent of exchange rates to outcom e of the negotiations on the re­ bring about, in tim e, a substantial im ­ alignm ent of exchange rates. A price provem ent in our foreign trade balance significantly higher than $38 per ounce and in our over-all balance of paym ents. w as never seriously considered. A n in­ Just how large the im provem ent w ill be, crease am ounting to less than 8.5 per and how long it w ill take for the full cent w ould have failed to bring forth a im provem ent to be realized, cannot be realignm ent of exchange rates as large as predicted w ith certainty. The experience the readjustm ent that w as finally ac­ of other countries indicates that large cepted. The prim ary objective of the exchange rate changes w ill produce large U .S. negotiators at the Sm ithsonian shifts in the balance of paym ents; but it m eeting w as to achieve a substantial also indicates that 2 years or so m ay need upw ard revaluation of the currencies of to elapse before the full extent of the other industrial countries against the favorable shift is realized. dollar, and this result w as achieved. W hile the Sm ithsonian realignm ent It should be noted in passing that under w ill have its largest effects on our ex­ the tw o-tier system for gold, agreed to ports and im ports, there should also be in M arch 1968, the official price of favorable effects on other com ponents m onetary gold and the free m arket price of the balance of paym ents, including of gold are effectively separated. For capital flows to and from the U nited all practical purposes, gold in official States. Such capital flows have already reserves is now a different entity from been affected. The enorm ous outflow of gold that is bought and sold in free speculative funds from the U nited States m arkets for industrial, artistic, or hoard­ cam e to an end w hen the Sm ithsonian ing purposes. In particular, the m arket A greem ent w as announced. Since D ecem ­ price of gold has no bearing on the change ber 18, there has been a sm all net return in the official price of gold proposed flow of funds. in the Par V alue M odification A ct. B esides serving to reinvigorate our foreign trade and otherw ise im prove EFFECTS OF THE SMITHSONIAN the balance of paym ents, the Sm ithsonian AGREEMENT A greem ent has increased confidence both Looking to the future, let m e turn briefly at hom e and abroad in the stability of the to the probable effects of the Sm ithsonian w orld econom y. This confidence w ill be A greem ent. Since dollar prices of foreign buttressed by passage of the Par V alue currencies are now substantially higher M odification A ct. than before, the grow th of our im ports w ill tend to slacken and dom estic pro­ UNFINISHED BUSINESS duction w ill be stim ulated. O n the other The Sm ithsonian A greem ent provided hand, the low er price of dollars abroad not only for a realignm ent of exchange w ill m ake it possible for our exporters to rates and other m easures of im m ediate quote low er prices in term s of foreign concern, but also “ that discussions should currencies. Sim ilarly, the low er price of be prom ptly undertaken, particularly in dollars w ill tend to stim ulate foreign the fram ew ork of the IM F, to consider Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

reform of the international m onetary The issues are m any and com plex. system over the longer-term .” This un­ It w ill take tim e to resolve them . B ut finished business is m ost im portant. If the unfinished business of international we are to avoid a repetition of crises m onetary reform requires that w e get on w hile preserving a m onetary fram ew ork w ith the job w ithout delay. Early action conducive to the healthy expansion of by the C ongress on the bill before you trade and investm ent, w e m ust w ork w ill set the stage for m uch needed pro­ w ith other countries to build a new and gress in both the international m onetary stronger international econom ic order. and international trade areas. In the area of exchange rates, the w ider m argins agreed to in D ecem ber CONCLUDING COMMENT should prove helpful, especially in m od­ I have discussed at som e length the erating short-term capital flows and there­ Sm ithsonian A greem ent because it has by perm itting som ew hat greater scope for given rise to the present hearing. B ut I differences in interest rates am ong coun­ cannot conclude this statem ent w ithout tries. For the longer run, procedures for w arning that neither the Sm ithsonian changing par values w ill need to be A greem ent, nor passage of the bill before flexible enough to prevent the build-up you, nor any international m onetary or of large and persistent im balances in trade reform s that m ay follow , can of trade and paym ents am ong countries. them selves do m ore than m ove us tow ard A searching re-evaluation is also needed the objectives of renew ed vigor in foreign of the roles to be played by gold, reserve trade and equilibrium in the balance of currencies, and Special D raw ing R ights in paym ents. settling international accounts. V arious To assure success in these objectives proposals for m odifying the operations of foreign econom ic policy, w e m ust have of the International M onetary Fund re­ skillful and fully responsible m anagem ent quire study and discussion. The circum ­ of m onetary and fiscal affairs. The ob­ stances under w hich the dollar m ay again jectives of our foreign econom ic policy be convertible into international reserve and of our dom estic econom ic policy assets w ill have to be review ed carefully. are interdependent. For the sake of both A nd determ ined new efforts w ill be re­ the one and the other w e w ill need to con­ quired to reduce im pedim ents to the centrate on stepping up sharply the pro­ international flow of goods, services, ductivity of our resources and on re­ and capital. gaining prosperity w ithout inflation. □ 278 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Law Department Statutes, regulations, interpretations, and decisions INTERPRETATION OF REGULATION A goods or for other purposes which are eligible within the meaning of the Federal Reserve Act. ELIGIBILITY OF CONSUMER LOANS AND If there is any question as to whether the proceeds FINANCE COMPANY PAPER of a note of a finance company have been or are to be used for a commercial, agricultural, or indus­ Effective February 25, 1972, the Board of trial purpose, a financial statement of the finance Governors has modified its earlier interpretation company reflecting an excess of notes receivable of this subject (1965 Bulletin 1409) as set forth which appear eligible for rediscount (without re­ below: gard to maturity) over total current liabilities (i.e., The Board of Governors has clarified and modi­ notes due within one year) may be taken as an fied its position with respect to the eligibility of indication of eligibility. Where information is consumer loans and finance company paper for lacking as to whether direct consumer loans by a discount with and as collateral for advances by the finance company are for eligible purposes, it may Reserve Banks. be assumed that 50 percent of such loans are Section 13, Paragraph 2, of the Federal Reserve “notes receivable which appear eligible for re­ Act authorizes a Federal Reserve Bank, under discount”. In addition, that language should be certain conditions, to discount for member banks regarded as including notes given for the purchase “ *** notes, drafts, and bills of exchange arising of mobile homes that are acquired by a finance out of actual commercial transactions; that is, company from a dealer-seller of such homes. notes, drafts, and bills of exchange issued or The principles stated above apply not only to drawn for agricultural, industrial, or commercial notes of a finance company engaged in making purposes, or the proceeds of which have been consumer loans but also to notes of a finance com­ used, or are to be used, for such purposes, pany engaged in making loans for other eligible the Board of Governors of the Federal Reserve purposes, including business and agricultural System to have the right to determine or define the loans. Under section 13a of the Federal Reserve character of the paper thus eligible for discount, Act, paper representing loans to finance the produc­ within the meaning of this Act.” tion, marketing, and carrying of agricultural prod­ It continues to be the opinion of the Board that ucts or the breeding, raising, fattening, or market­ borrowing for the purpose of purchasing goods is ing of livestock is eligible for discount if the paper borrowing for a commercial purpose, whether the has a maturity of not exceeding nine months. Con­ borrower intends to use the goods himself or to sequently, a note of a finance company the pro­ resell them. Hence, loans made to enable con­ ceeds of which are used by it to make loans for sumers to purchase automobiles or other goods such purposes is eligible for discount or as should be included under commercial, agricultural, security for a Federal Reserve advance, and such and industrial paper within the meaning of the a note, unlike the note of a finance company Federal Reserve Act, and as such are eligible for making consumer loans, may have a maturity of discounting with the Reserve Banks and as security up to nine months. for advances from the Reserve Banks under section 13, paragraph 8, of the Federal Reserve Act as long ORDERS UNDER BANK MERGER ACT as they conform to requirements with respect to ma­ turity and other matters. This applies equally to CITIZENS BANK OF SCHOOLFIELD, loans made directly by banks to consumers and to DANVILLE, VIRGINIA paper accepted by banks from dealers or finance Order Approving Merger of Banks companies. It also applies to notes of finance com­ panies themselves as long as the proceeds of such Citizens Bank of Schoolfield, Danville, Virginia, notes are used to finance the purchase of consumer a proposed member State bank of the Federal 279 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 FEDERAL RESERVE BULLETIN □ MARCH 1972 Reserve System, has applied pursuant to the Bank competitive factors from the Attorney General, the Merger Act (12 U.S.C. 1828(c)), for the Board’s Comptroller of the Currency, and the Federal De­ prior approval to merge with Schoolfield Bank & posit Insurance Corporation. The Board has con­ Trust Company, Danville, Virginia, under the sidered the application and all comments and re­ charter of the former and the name of the latter. ports received in light of the factors set forth in As required by the Act, notice of the pro­ the Act. posed merger, in form approved by the Board, On the basis of the record, the application is ap­ has been published and the Board has re­ proved for the reasons summarized in the Board’s quested reports on competitive factors from the Order of this date relating to the application of Attorney General, the Comptroller of the Cur­ Tennessee Valley Bancorp, Inc. to become a bank rency, and the Federal Deposit Insurance Corpora­ holding company, provided that said merger shall tion. The Board has considered all relevant not be consummated (a) before the thirtieth material contained in the record in the light of the calendar day following the date of this Order or factors set forth in the Act. (b) later than three months after the date of this On the basis of the record, the application is Order, unless such period is extended for good approved for the reasons summarized in the Board’s cause by the Board or by the Federal Reserve Bank Order of this date relating to the application of First of Atlanta pursuant to delegated authority. Virginia Bankshares Corporation, Arlington, Vir­ By order of the Board of Governors, February ginia, to acquire voting shares of the successor 22, 1972. by merger to Schoolfield Bank and Trust Company, Voting for this action: Chairman Burns and Governors Rob­ Danville, Virginia.1 The transaction shall not be ertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and consummated (a) before the thirtieth calendar not voting: Governor Maisel. day following the date of this Order or (b) later (Signed) Tynan Smith, than three months after the date of this Order, [seal] Secretary of the Board. unless such period is extended for good cause by the Board or by the Federal Reserve Bank of Rich­ mond pursuant to delegated authority. ORDERS UNDER SECTION 3 OF BANK HOLDING COMPANY ACT By order of the Board of Governors, February 11, 1972. BANK SECURITIES INC., Voting for this action: Vice Chairman Robertson and Gov­ ALAMOGORDO, NEW MEXICO ernors Daane, Brimmer, and Sheehan. Absent and not voting: Chairman Burns and Governors Mitchell and Maisel. Order Approving Acquisition of Bank (Signed) Tynan Smith, Bank Securities Inc., Alamogordo, New Mexi­ [seal] Secretary of the Board. co, a bank holding company within the meaning of the Bank Holding Company Act, has applied for COMMERCE UNION BANK, the Board’s approval under § 3(a)(3) of the Act NASHVILLE, TENNESSEE (12 U.S.C. 1842(a)(3)) to acquire 60 per cent or more of the voting shares of First National Bank Order Approving Application for Merger of Portales, Portales, New Mexico (“Bank”). of Banks Notice of receipt of the application has been Commerce Union Bank, Nashville, Tennessee, given in accordance with § 3(b) of the Act, and the a member State bank of the Federal Reserve Sys­ time for filing comments and views has expired. tem, has applied for the Board’s approval pur­ The Board has considered the application and all suant to the Bank Merger Act (12 U.S.C. 1828(c)) comments received in the light of the factors set of the merger of that bank with Broadway State forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and Bank, Nashville, Tennessee, under the charter and finds that: name of the former. As an incident to the merger, Applicant, third largest of four multi-bank the present offices of Commerce Union Bank will holding companies in New Mexico, has six sub­ continue as branches thereof. sidiary banks controlling $91.2 million in deposits representing 5.4 per cent of total deposits held by As required by the Act, notice of the proposed merger, in form approved by the Board, has been commercial banks in the State. (All banking data published, and the Board has requested reports on are as of June 30, 1971, and reflect holding com­ pany formations and acquisitions approved through *(See page 288.) November 30, 1971.) Upon acquisition of Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 281 ($12.8 million deposits) Applicant’s share of de­ The Board wishes to note the difficulty, even after posits in the State would increase by approximate­ extensive market investigation, in determining a ly .8 percentage points, and its present ranking true market value of closely held, thinly traded bank would remain unchanged. Bank, the third largest holding company shares, for the purpose of of five banks in the Roosevelt-Curry County area, evaluating the equivalence of a combination cashwhich approximates its banking market, operates exchange offer transaction of the type proposed two banking offices in Portales, New Mexico, by Applicant. In view of this difficulty, there exists and controls approximately 14 per cent of com­ the possibility that an exchange offer which is not mercial bank deposits in the market. identical to the terms agreed to with holders of a Applicant’s acquisition of Bank would constitute majority of the shares may serve certain private its initial entry into the area, and its subsidiary interests to the undue disadvantage of minority banking office closest to Bank is located approxi­ shareholders. Therefore, the Board believes that mately 125 miles northwest of Bank. No com­ where it is proposed that all shareholders of bank petition exists between Bank and any of Appli­ shares are not to be treated identically, the burden cant’s subsidiary banks, nor does it appear likely rests upon the proponents to demonstrate the sub­ that such competition will develop in the future in stantial equivalence of the offers extended. light of the distances separating Bank from Ap­ Upon a review of the material supplied in support plicant’s subsidiaries, Bank’s relatively small size, of Applicant’s proposal, and upon analysis of the and the State’s restrictive branching laws. Con­ current value of its shares and the future prospects summation of this proposal would neither eliminate and conditions in Applicant’s market, the Board any meaningful existing competition nor foreclose concludes that the proposed offer to minority significant potential competition. shareholders is substantially equivalent to that Although it does not appear that any needs of given the Bank’s original majority shareholders. the banking public in Bank’s market are going Accordingly, the Board concludes that the pro­ unserved, Applicant proposes to provide additional posed transaction is in the public interest and specialized services such as business and invest­ should be approved. ment counseling and a convenient source of capital On the basis of the record, the application is to permit the servicing of larger loans. The ex­ approved for the reasons summarized above. tension of these services should afford some The transaction shall not be consummated (a) benefit to the public. The financial and managerial before the thirtieth calendar day following the resources and future prospects of Applicant, its date of this Order or (b) later than three months subsidiaries and Bank are generally satisfactory and after the date of this Order, unless such period is consistent with approval. In addition, Appli­ extended for good cause by the Board, or by the cant’s intention to modify its present management Federal Reserve Bank of Dallas pursuant to dele­ fee policy as concerns its subsidiary banks should gated authority. have a beneficial effect on the prospects of these By order of the Board of Governors, February banks and the interests of their minority share­ 7, 1972. holders. Voting for this action: Chairman Burns and Governors Additional consideration has been given to the Mitchell, Daane, Maisel, Brimmer, and Sheehan. Voting form of Applicant’s proposal. The Board has against this action: Governor Robertson. on a number of occasions expressed the view (Signed) Tynan Smith, that failure to make an equivalent offer to minority [seal] Secretary of the Board. shareholders is considered as an adverse circum­ stance (e.g., 1971 Bulletin 415 and 688). DISSENTING STATEMENT OF GOVERNOR ROBERTSON Applicant plans to purchase for cash 60 per cent of Bank’s shares from four individuals, who are The Board’s action approving Applicant’s pro­ principals of Applicant, pursuant to an option posal adds a cover of legitimacy to a transaction agreement executed with these individuals in which in my view clearly violated the Bank Hold­ December 1970. Applicant proposes to offer an ing Company Act in its inception. exchange of shares to all minority shareholders of In January, 1970, Applicant entered into an Bank at an exchange ratio based upon Applicant’s agreement with principals of Bank owning 60 per estimated present valuation of its shares rather than cent of Bank’s shares whereby Applicant agreed to at a ratio based upon the actual market price of purchase a portion of these shares at that time Applicant’s stock at the time of the exchange. and was given an option to purchase the remainder Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 FEDERAL RESERVE BULLETIN □ MARCH 1972 of these shares for cash within one year. Prior to shareholders based upon a guess as to the market for the expiration of this agreement, Applicant, not Applicant’s shares some time in the future. The having applied for Board approval of this acquisi­ failure of Applicant to extend an offer to minority tion, found itself unable to exercise its option. shareholders on the same terms as those extended Consequently, Applicant assigned its purchase majority interests improperly places the burden option to four individuals, all of whom are officers on the Board to establish the relative equivalency and/or directors of Applicant, who purchased 55 of differing offers. This is inappropriate in any case, per cent of Bank’s outstanding shares with ex­ more so when, as in this case, the proposed ex­ pressed intention of selling such shares to Appli­ change is calculated at a predetermined rate cant. Subsequently, Applicant entered into an based upon the present valuation of Applicant’s option agreement with these purchasers providing shares rather than the value at the time of the for Applicant’s purchase of these shares for cash actual exchange. Judgments such as made by within one year on similar terms to applicant’s the majority in this case engage the Board in original agreement with shareholders of Bank. the business of securities market speculation in Had Applicant exercised its original option to an effort to reach its conclusions with regard to purchase Bank’s shares prior to receiving Board an exchange offer. Applicant, in my view, has approval, that transaction would have been pro­ not presented sufficent arguments to support its hibited as a violation of § 3 of the Bank Holding refusal to extend an exchange offer to minority Company Act of 1956. Applicant accomplished shareholders based upon the value of its shares this prohibited acquisition by means of a scheme at the time of the exchange. For this reason, the involving four of its officials. proposed transaction is thus not in the public in­ The Act does not require prior Board approval terest. of acquisitions of bank shares by individuals act­ I would deny the application. ing in their own behalf. However, the facts of the present case establish that Applicant’s officials FIRST BANC GROUP OF OHIO, INC., were acting on behalf of Applicant to preserve COLUMBUS, OHIO a corporate opportunity which would be lost at the expiration of the option term after Applicant found Order Approving Acquisition of Bank itself unable to consummate the purchase. Ac­ First Banc Group of Ohio, Columbus, Ohio, quisition by Applicant’s representatives was made a bank holding company within the meaning of with the express intention of transferring the shares the Bank Holding Company Act, has applied for to Applicant when it became legally permissible. the Board’s approval under § 3(a) (3) of the Act Although Applicant asserts that no agreement or (12 U.S.C. 1842(a)(3)) to acquire 100 per cent of mutual understanding existed between it and these the voting shares (less directors’ qualifying shares) individuals, the fact that all dividends from Bank’s of the successor by merger to Clermont National shares were assigned to Applicant over the option Bank, Milford, Ohio (“Bank”). The bank into period indicates the true intended beneficiary of which Bank is to be merged has no significance the transaction. These circumstances reveal a except as a means to facilitate the acquisition of clear attempt to avoid the requirements of § 3 of the voting shares of Bank. Accordingly, the pro­ the Act. I conclude that Applicant, “acting through posed acquistion of the shares of the successor one or more persons”, controlled and had the organization is treated herein as the proposed power to vote more than 25 per cent of Bank’s acquisition of the shares of Bank. shares and thereby violated § 3 of the Act by making Notice of receipt of the application has been this acquisition without Board approval. The given in accordance with § 3(b) of the Act, and the Board should neither encourage nor condone this time for filing comments and views has expired. type of statutory evasion by companies desiring The Board has considered the application and all to preserve an option until an opportunity for comments received in the light of the factors set lawful acquisition comes along. The Board’s forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and action approving this acquisition can only serve to finds that: encourage other attempts to avoid full statutory Applicant controls nine banks with deposits of compliance prior to making a desire acquisition. $715.5 million, representing 3.2 per cent of total In addition, I disagree with the majority’s ap­ commercial bank deposits in the State, and is the parent belief that it can or must determine the seventh largest banking organization in Ohio. relative equivalency of an offer to Bank’s minority (All banking data are as of June 30, 1971, and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 283 reflect holding company formations and acquisi­ siderations relating to convenience and needs of tions approved through November 30, 1971.)1 the community lend some weight toward approval. Acquisition of Bank (deposits of $48.9 million) It is the Board’s judgment that the proposed would increase Applicant’s share of deposits in transaction would be in the public interest and the State by approximately .2 percentage points, that the application should be approved. and its present ranking would remain unchanged. On the basis of the record, the application is ap­ Consummation of the proposed transaction would proved for the reasons summarized above. The not result in a substantial increase in the concen­ transaction shall not be consummated (a) before tration of banking resources in the State. the thirthieth calendar day following the date Bank’s main office and two of its eight branch of this Order or (b) later than three months after offices are located in Milford, Ohio, 16 miles east the date of this Order, unless such period is ex­ of Cincinnati, Ohio. It is the seventh largest of tended for good cause by the Board, or by the Fed­ 39 banks in the Cincinnati market and controls eral Reserve Bank of Cleveland pursuant to dele­ 1.9 per cent of market deposits. Applicant’s sub­ gated authority. sidiary closest to Bank is located in a separate By order of the Board of Governors, February market approximately 19 miles northwest of Bank. 7,1972. Although some competition exists between bank Voting for this action: Chairman Burns and Governors Rob­ and Applicant’s closest subsidiary, the amount ertson, Daane, Brimmer, and Sheehan. Absent and not voting: of competition is not considered substantial. Thus, Governors Mitchell and Maisel. consummation of the proposed acquisition would (Signed) Tynan Smith, not have a significantly adverse effect on existing [seal] Secretary of the Board. competition. The amount of potential competition which may be foreclosed by the proposed acquisition is FIRST NATIONAL BANKSHARES OF regarded as insubstantial in view of the structure of FLORIDA, INC., POMPANO BEACH, the Cincinnati banking market, Bank’s size, and FLORIDA Ohio’s restrictive branch banking laws. The pro­ posal represents Applicant’s initial entry into the Order Approving Formation of Bank Cincinnati market, a market in which the top four Holding Company banking organizations control over 80 per cent of banking deposits, and consummation of the pro­ First National Bankshares of Florida, Inc., posal may serve to stimulate competition in this Pompano Beach, Florida, has applied for the area. Board’s approval under § 3(a)(1) of the Bank On the basis of the foregoing, the Board con­ Holding Company Act (12 U.S.C. 1842(a)(1)) of cludes that consummation of the proposed transac­ formation of a bank holding company through tion would not result in a monopoly, nor be in acquisition of 90 per cent or more of the voting furtherance of any combination, conspiracy or at­ shares of First National Bank of Pompano Beach, tempt to monopolize the business of banking in Pompano Beach; First National Bank of North any part of the United States, and would not re­ Broward County, Lighthouse Point; First Na­ strain trade, substantially lessen competition, or tional Bank of Margate, Margate, and Beach tend to create a monopoly in any section of the First National Bank of Pompano Beach, Pom­ country. pano Beach, all in the State of Florida. The financial and managerial resources and fu­ Notice of receipt of the application has been ture prospects of Applicant, its subsidiary banks given in accordance with § 3(b) of the Act, and and Bank are regarded as satisfactory and con­ the time for filing comments and views has ex­ sistent with approval. Although there is no evidence pired. The Board has considered the application that significant banking needs of the communities and all comments received in the light of the fac­ involved are going unserved, Applicant proposes tors set forth in § 3(c) of the Act (12 U.S.C. to expand mortgage, educational, consumer and 1842(c)) and finds that: industrial loans services and provide trust facili­ Applicant was formed for the purpose of ac­ ties through its lead bank. Accordingly, con- quiring the four proposed subsidiary banks, all of which are affiliated through common stock owner­ *0n January 25, 1972, Applicant received approval from the Board to ship. Upon acquisition of Pompano Beach Bank acquire The Ashland Bank and Savings Company, Ashland, Ohio (de­ posits of $12.8 million). (deposits of $72.5 million), North Broward Bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 FEDERAL RESERVE BULLETIN □ MARCH 1972 (deposits of $31.6 million), Margate Bank (de­ By order of the Board of Governors, February posits of $19 million), and Beach First Bank (de­ 7,1972. posits of $8.2 million), Applicant would become Voting for this action: Chairman Burns and Governors Rob­ the largest banking organization (deposits of $ 131.3 ertson, Daane, Brimmer, and Sheehan. Absent and not voting: million) within the relevant market, which is ap­ Governors Mitchell and Maisel. proximated by the northern one-third of Broward (Signed) Tynan Smith, County and Boca Raton in Palm Beach County.1 [seal] Secretary of the Board. Although Applicant would have 32.6 per cent of the commercial bank deposits in its market area, ASSOCIATED BANK SERVICES, INC., there would be no increase in market concentration GREEN BAY, WISCONSIN and less than 1 per cent of the total commercial bank deposits in Florida would be held by Ap­ Order Denying Acquisition of Bank plicant’s proposed subsidiary banks, thereby Associated Bank Services, Inc., Green Bay, making Applicant the eighteenth largest of twenty- Wisconsin, a bank holding company within the three holding companies in the State. meaning of the Bank Holding Company Act, The stockholders of Pompano Beach Bank or­ has applied for the Board’s approval under § 3(a)(3) ganized de novo North Broward Bank, Margate of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 Bank and Beach First Bank. Pompano Beach per cent or more of the voting shares of American Bank’s stockholders own between 65 and 90 per National Bank of Green Bay (“Bank”), Green cent of the three affiliated banks and have been in­ Bay, Wisconsin. strumental in the management of such banks. Notice of receipt of the application has been Since the affiliation among the four banks appears given in accordance with § 3(b) of the Act, and the to be strong and is unlikely to diminish, there is time for filing comments and views has expired. no meaningful existing competition. It appears The Board has considered the application and all unlikely that competition among the banks will comments received in the light of the factors set develop in the future or that competing banks forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and would be adversely affected by the holding com­ finds that: pany formation. Applicant controls three banks with aggregate The financial and managerial resources of Ap­ deposits of approximately $215 million, represent­ plicant and the proposed subsidiaries are satisfac­ ing 2.1 per cent of the total commercial bank de­ tory and consistent with approval. It appears that posits in the State, and is the fourth largest bank­ consummation of the proposal would not have any ing organization and bank holding company in immediate effects on the convenience and needs Wisconsin.1 Upon acquisition of Bank ($13.5 of the community, although the improvement and million of deposits), Applicant’s position in rela­ expansion of services may be facilitated by the tion to the State’s other banking organizations operational structure of a holding company. Con­ and holding companies would remain unchanged siderations related to the convenience and needs and Applicant’s share of deposits in the State of the communities to be served are, therefore, would be increased by 0.1 percentage point. consistent with approval. It is the Board’s judg­ Bank was established in 1963 by officers and ment that the proposed transaction would be in directors of Kellogg-Citizens National Bank (“Kel­ the public interest and that the application should logg”), Applicant’s lead bank ($120 million of be approved. deposits), and the two banks were affiliated until On the basis of the record, the application is ap­ Kellogg was acquired by Applicant upon its proved for the reasons summarized above. The formation in 1970. At present, 44 per cent of transaction shall not be consummated (a) before Bank’s shares are owned by management of Kel­ the thirtieth calendar day following the date of logg and 87 per cent of Bank’s shares are held by this Order or (b) later than three months after the shareholders of Applicant. Bank is the seventh date of this Order, unless such period is extended largest of fifteen banks in the Green Bay banking for good cause by the Board, or by the Federal market (which is approximately Brown County), Reserve Bank of Atlanta pursuant to delegated the relevant market, and controls 3.5 per cent of authority. 1 All banking data are as of June 30, 1971, and reflect holdranking data are as of June 30, 1971, and reflect holding company ing company formations and acquisitions approved through formations and acquisitions approved through December 31, 1971. November 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 285 deposits in that market. Applicant’s subsidiary, By order of the Board of Governors, February Kellogg, is the largest banking organization in 7,1972. that market with 31.3 per cent of deposits there. Voting for this action: Chairman Burns and Governors Rob­ Bank is located in a shopping center less than ertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. three miles from Kellogg which is located in downtown Green Bay; and the service areas of (Signed) Tynan Smith, Bank and Kellogg overlap. However, due to their [seal] Secretary of the Board. previous affiliation and present relationship, it ap­ Order Approving Acquisition of Bank pears that the two banks presently do not compete Associated Bank Services, Inc., Green Bay, with each other. Wisconsin, a bank holding company within the Denial of the application holds out the possibility meaning of the Bank Holding Company Act, has that the existing ownership links would be broken, applied for the Board’s approval, under § 3(a)(3) and Bank could become an additional independent of the Act (12 U.S.C. 1842(a)(3)), to acquire competitor with a resulting decrease in the share 80 per cent or more of the voting shares of Neenah of deposits controlled by Applicant in the relevant West National Bank (“Bank”), Neenah, Wis­ market. Furthermore, approval of the proposed consin. acquisition would foreclose Bank as a possible Notice of receipt of the application has been point of entry for another bank holding company; given in accordance with § 3(b) of the Act, and and would solidify Kellogg’s and Applicant’s the time for filing comments and views has ex­ already dominant position in the relevant market. pired. The Board has considered the application On the basis of the record before it, the Board and all comments received in the light of the fac­ concludes that the effect of approval of the ap­ tors set forth in § 3(c) of the Act (12 U.S.C. plication herein may be substantially to lessen 1842(c)) and finds that: competition in the Green Bay area. Accordingly, Applicant controls three banks with aggregate this application should be disapproved unless the deposits of approximately $215 million, represent­ Board finds that the anticompetitive effects are ing 2.1 per cent of the total commercial bank de­ clearly outweighed in the public interest by the posits in the State, and is the fourth largest bank­ probable effect of the transaction in meeting the ing organization and bank holding company in convenience and needs of the community to be Wisconsin.1 Applicant’s acquisition of Bank ($5.7 served. million in deposits) would increase Applicant’s In our judgment, consummation of Applicant’s share of deposits in the State by 0.1 percentage proposal would result in no significant benefit to point without affecting Applicant’s ranking. the convenience or needs of the community to be served. The record indicates that the area’s needs Bank was organized in 1966 by directors and are being served adequately by the banks serving officers of The First National Bank of Neenah the area. Bank is also providing, directly, or in­ (“Neenah National”), and was an affiliate of directly through Kellogg as its correspondent, the Neenah National until the latter bank was acquired full line of services needed in its service area. If the by Applicant on May 1, 1970. Presently, about application is denied, Bank reasonably may be ex­ 36 per cent of Bank’s stock is held by management pected to provide similar services with the assist­ of Neenah National and over 70 per cent of Bank’s ance of one or more correspondents—whether as an stock is held by shareholders of Applicant; the independent bank or as a subsidiary of a bank hold­ close association that existed appears to be a con­ ing company. Considerations relating to the con­ tinuing relationship. It appears that the two venience and needs of the communities to be served banks do not in fact compete with each other, do not clearly outweigh the anticompetitive effects even though the main offices of Bank and Neenah of the proposed transaction. Considerations relat­ National are located only 1.5 miles apart and ing to financial and managerial resources and future there is considerable overlap of the respective service areas. prospects of Applicant, its subsidiaries, and Bank Bank is the smallest of the 15 banks in the Ap­ are regarded as consistent with approval of the pleton banking market, the relevant market, which application but do not add strong weight for ap­ is approximated by the southeast portion of Outa­ proval. On the basis of the record, the Board gamie County and the northeast portion of Winneconcludes that approval of the proposed acquisi­ tion is not in the public interest, and approval is 1 All banking data are as of June 30, 1971, and reflect holding company accordingly denied. formations and acquisitions approved through November 30, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 FEDERAL RESERVE BULLETIN □ MARCH 1972 bago County, and holds 1.7 per cent of deposits the thirtieth calendar day following the date of in that market. Applicant’s subsidiary, Neenah this Order or (b) later than three months after the National ($43.6 million in deposits), holds 12.8 date of this Order, unless such period is extended per cent of the total deposits in the market. Two for good cause by the Board, or by the Federal Appleton-based holding companies operate five Reserve Bank of Chicago pursuant to delegated banks in the market and together they control authority. about 47 per cent of total deposits there. Compet­ By order of the Board of Governors, February ing in the same market is the third largest bank­ 7, 1972. ing organization in the State. The acquisition of Voting for this action: Chairman Burns and Governors Bank would have a minimal effect on concentra­ Mitchell, Daane, Maisel, Brimmer, and Sheehan. Voting tion and, in view of the relationship between Bank against this action: Governor Robertson. and Neenah National, said acquisition apparently (Signed) Tynan Smith, would not eliminate any existing competition. If [seal] Secretary of the Board. the application were denied, the existing owner­ Dissenting Statement of Governor ship ties might eventually be dissolved and Bank Robertson might be able to become an independent competi­ I would deny the subject application as the ac­ tor. However, in view of the facts of record, in­ quisition will preclude the possibility of future com­ cluding Bank’s small size and small market share, petition between Bank and Neenah National. Fur­ and the number and size of banks already in the thermore, Applicant’s acquisition of Bank would market, such possible disassociation is not likely remove a means of entry for another bank holding to have a significant procompetitive effect. On company, the result of which would be to enhance the basis of the record before it, the Board con­ competition. cludes that consummation of the proposed ac­ Bank and Applicant’s subsidiary, two of the quisition would not have a significantly adverse three banks operating in Neenah, are located in effect on competition in any relevant area. Nor is an industrial center which borders the western consummation likely to have any significant ad­ side of Lake Winnebago. Acquisition of Bank verse effects on Bank’s competitors. will increase Applicant’s control of deposits in Applicant proposes to aid Bank in the technical the city of Neenah from 54.6 per cent to 61.8 per aspects of lending, investments, data processing, cent and will perpetuate Applicant’s dominance trust services, marketing, accounting and auditing, in Neenah. Because of the market overlap, these as well as provide for management succession. banks are potentially competitive and, if their as­ While many of these services are already being sociation were ended by a denial of this applica­ furnished, it appears that the acquisition would tion, competition between them could be expected. assure the continuation by Bank of present serv­ I conclude that consummation of the acquisition ices and the addition of improved and expanded will have an adverse effect on competition and services in the future. Considerations relating to the application should not be approved in the the convenience and needs of the communities absence of a finding of positive benefits to the to be served lend some weight toward approval public that outweigh such adverse effects. of the application. Applicant proposes to continue providing serv­ Considerations relating to financial and man­ ices already made available through Bank. As the agerial resources and future prospects as they re­ evidence on the record indicates that the banking late to Applicant, its subsidiaries and Bank, are needs of the community are presently being met, regarded as generally satisfactory. Applicant is in Applicant is not offering to provide any benefits to a position to assist Bank in meeting its need for ad­ the public that outweigh the anticompetitive effects ditional capital; and proposes to add $100,000 to of the acquisition. Bank’s capital account. Applicant’s acquisition In my judgment, the application should be of Bank would enhance Bank’s prospects. Bank­ denied. ing factors lend weight toward approval. It is the Board’s judgment that consummation of the pro­ MIDLANTIC BANKS INC., posed acquisition would be in the public interest NEWARK, NEW JERSEY and that the application should be approved. On the basis of the record, the application is Order Approving Acquisition of Bank approved for the reasons summarized above. The Midlantic Banks Inc., Newark, New Jersey, transaction shall not be consummated (a) before has applied for the Board’s approval under § 3(a)(3) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 287 of the Bank Holding Company Act (12 U.S.C. tional Newark”), a $602 million institution, which 1842(a)(3)) to acquire 100 per cent (less directors’ is the fourth largest bank in New Jersey and the qualifying shares) of the voting shares of Madison third largest bank in the Greater Newark Market;2 National Bank, Madison, New Jersey (“Madison and the Sussex and Merchants National Bank of Bank”). Newton, a $46 million institution which is the Notice of receipt of the application has been largest of four relatively small banks in Sussex given in accordance with § 3(b) of the Act, and the County. Applicant also has two small subsidiaries time for filing comments and views has expired. located in the Second and Third Banking Districts. The Board has considered the application and all Madison Bank, which is located in the Greater comments received in light of the factors set Newark Market, has deposits of only some $9 forth in § 3(c) of the Act (12 U.S.C. 1842(c)). million, representing but .2 per cent of total market On the basis of the record, the application is ap­ deposits, and is the twenty-eighth largest of 46 proved for the reasons set forth in the Board’s banks. Statement of this date, with the provision that Although both Applicant’s lead bank, National Applicant merge Madison Bank into one of its Newark, and Madison Bank operate in the Greater subsidiaries within two years of the approval Newark Market, there seems to be little present date of this application. The transaction shall not competition between the two due to the tremendous be consummated (a) before the thirtieth calendar size disparity between National Newark and day following the date of this Order or (b) later Madison Bank. Madison Bank is a retail organiza­ than three months after the date of this Order, tion, serving smaller customers, whereas, National unless such period is extended for good cause by Newark tends to be more involved in wholesale the Board, or by the Federal Reserve Bank of New banking. The acquisition of Madison Bank by York pursuant to delegated authority. Applicant would add little to its market share in By order of the Board of Governors, February the Greater Newark Market. Moreover, the great 7,1972. number of additional banks which would remain in the market, including subsidiaries of five exist­ Voting for this action: Chairman Burns and Governors ing bank holding companies, suggests that there Mitchell, Daane, Maisel, Brimmer, and Sheehan. Voting against this action: Governor Robertson. will be continued vigor of competition even if the application is approved. (Signed) Tynan Smith, Additionally, approval of the application should [seal] Secretary of the Board. provide pro-competitive effects. Madison Bank is Statement located in Madison, New Jersey, which is an affluent community and is relatively attractive Nature of transaction. Midlantic Banks Inc., to de novo branching. However, Madison is Newark, New Jersey, a registered bank holding presently closed through home office protection ac­ company, has applied to the Board of Governors, corded Madison Bank. Applicant, as a part of its pursuant to § 3(a)(3) of the Bank Holding Company proposal to acquire Madison Bank, has agreed that Act (12 U.S.C. 1842(a)(3)), for prior approval of it will merge Madison Bank into one of its sub­ the acquisition of 100 per cent (less directors’ sidiaries within two years of approval of this ap­ qualifying shares) of the voting shares of the suc­ plication. This would open Madison to new branch­ cessor by merger to Madison National Bank, ing and would provide a better competitive climate. Madison, New Jersey (“Madison Bank”). Based on the foregoing and facts of record, the Statutory considerations. Applicant controls Board concludes that competitive considerations four banks with aggregate deposits of $678 million are consistent with approval of the application. and is the fourth largest banking organization in The financial condition of Applicant, its sub­ New Jersey with 4.9 per cent of the deposits in the sidiary banks, and Madison Bank is satisfactory State.1 Acquisition of Madison Bank’s deposits by and prospects of all are favorable. These considera­ Applicant would not increase the percentage share tions are consistent with approval of the applica­ of deposits in the State held by Applicant to a tion. significant extent. Applicant presently has two Consummation of the Applicant’s proposal subsidiaries in the First Banking District of New would have a beneficial effect on the convenience Jersey: National Newark and Essex Bank (“Na­ and needs of Madison since it would remove 1 Banking data are as of June 30, 1970, and reflect holding company 2The Greater Newark Market consists of all of Essex County and parts formations and acquisitions approved by the Board through that date. of Union, Hudson and Morris Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 FEDERAL RESERVE BULLETIN □ MARCH 1972 Madison Bank’s home office protection within two If Applicant were serious about wanting to years of approval of this application resulting in provide additional banking services to the residents opening that city to branching from without. of the Madison area, it should seek a charter for a Applicant proposes to introduce services such as new bank there. (Home office protection does not data processing and also plans to expand the bar the chartering of a new bank.) This would scope of commercial lending while taking a more provide public benefits by increasing competition. active role in bidding for obligations of local However, Applicant apparently much prefers to governments. These considerations lend weight acquire the profitable business of Madison Bank for approval of the application. rather than to open a new competing bank. This Summary and conclusion. On the basis of all preference is so strong that it is willing to pay a relevant facts contained in the record, and in the premium of almost $1.5 million (measured by book light of the factors set forth in section 3(e) of the value), which represents about 16 per cent of Act, it is the Board’s judgment that the proposed Madison Bank’s deposits. transaction would be in the public interest, and In the complete absence of a showing of public that the application should be approved. benefits sufficient to outweigh the elimination of direct competition involved in consummation of Dissenting Statement of Governor the acquisition, I would deny the application. Robertson I dissent from the majority’s approval of this FIRST VIRGINIA BANKSHARES application whereby the third largest banking CORPORATION, ARLINGTON, VIRGINIA organization in the Greater Newark Market, Order Approving Acquisition of Bank with some 17 per cent of market deposits, is per­ mitted to acquire another bank which is a direct First Virginia Bankshares Corporation, Arling­ competitor. Although Applicant’s lead bank, ton, Virginia, a bank holding company within the National Newark, and the Madison bank are of meaning of the Bank Holding Company Act, has disparate size, their service areas overlap. A applied for the Board’s approval under § 3(a)(3) of branch office of National Newark is located only the Act (12 U.S.C. 1842(a)(3)) to acquire 100 seven miles from Madison Bank and derives a per cent of the voting shares (less directors’ significant amount of deposits and loans from the qualifying shares) of the successor by merger to service area of Madison Bank. Schoolfield Bank & Trust Company, Danville, Congress has enjoined this Board from ap­ Virginia (“Bank”). proving any bank acquisition or merger which The bank into which Bank is to be merged has would substantially lessen competition unless no significance except as a means of acquiring there are public benefits flowing from the acquisi­ the voting shares of Bank. Accordingly, the pro­ tion or merger which clearly outweigh the anti­ posed acquisition of the shares of the successor competitive effects. The anticompetitive con­ organization is treated as the proposed acquisition sequences of this application are serious enough of the shares of Bank. to require a strong showing of offsetting public Notice of receipt of the application has been benefits. No such showing has been made. given in accordance with § 3(b) of the Act, and The Board’s Statement refers to the proposal the time for filing comments and views has ex­ by Applicant to remove home office protection pired. The Board has considered the application from Madison, New Jersey, within two years of and all comments received in the light of the approval of the application by merging Madison factors set forth in § 3(c) of the Act (12 U.S.C. Bank with another subsidiary of Applicant.1 How­ 1842(c)) and finds that: ever, there is nothing to prevent a new bank sub­ Applicant, the sixth largest banking organiza­ sequently being chartered in Madison which would tion in Virginia, controls 19 banks with ag­ resurrect home office protection. I believe that the gregate deposits of $540.8 million, representing removal of home office protection is merely a 6.4 per cent of total commercial bank deposits in transitory benefit to competition that should not the State.1 The acquisition of Bank ($14.2 million be given great weight when placed in the scale deposits) would not represent an appreciable in­ against anticompetitive consequences of the ap­ crease in Applicant’s control of deposits in the plication. State or change its present classification. 1 Under New Jersey law a city of over 7,500 population containing 1 Banking data are as of June 30, 1971, and reflect holding company a home office of a bank is closed to de novo branching from without. formations and acquisitions approved through December 31, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 289 Bank controls 8.9 per cent of total deposits homa, a bank holding company within the mean­ among the 9 banks and 20 banking offices operat­ ing of the Bank Holding Company Act, has ap­ ing in the relevant market, which approximates plied for the Board’s approval under § 3(a)(3) of the southern half of Pittsylvania County.2 Bank the Act (12 U.S.C. 1842(a)(3)) to acquire 14.5 operates its two offices in the City of Danville, per cent of the voting shares of Southeastern State where it ranks as fourth largest of the seven city Bank, Tulsa, Oklahoma (“Bank”). banks. The nearest of Applicant’s subsidiaries to Notice of receipt of the application has been Bank is located 150 miles from Danville. No given in accordance with § 3(b) of the Act, and the significant present competition exists between Bank time for filing comments and views has expired. and any office of Applicant, and it appears that The Board has considered the application and all consummation of the proposal would not fore­ comments received in the light of the factors set close the development of potential competition forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and because of the distances involved and Virginia’s finds that: restrictive branching laws. Applicant, the largest bank holding company The financial and managerial resources of Ap­ and the third largest banking organization in plicant and Bank are satisfactory and prospects Oklahoma, controls one bank, The First National for each appear favorable. Banking factors lend Bank and Trust Company of Tulsa, with deposits some support for approval since Applicant will of $407.7 million, representing 7.0 per cent of assist Bank in securing replacements for the the total commercial bank deposits in the State recent loss of two officers of Bank. Convenience and maintains close relationships with two sub­ and needs considerations also lend weight toward urban Tulsa banks, Admiral State Bank and approval because of new and expanded services Community State Bank. Both suburban banks are planned by Applicant, which will improve Bank’s controlled by majority shareholders of Applicant ability to compete with representatives of the and together hold 3.2 per cent of the commercial larger banking organizations in the area. Ap­ bank deposits in the Tulsa banking market (ap­ plicant’s planned new services would include an proximated by Tulsa County and portions of overdraft checking service for Bank and trust Creek and Rogers Counties). (All banking data services; assistance would also be provided Bank are as of June 30, 1971.) Upon consummation of in its staff training program, investment portfolio the proposal herein, Applicant’s share of deposits management, and data processing service. It is in the State would increase only slightly, and its the Board’s judgment that consummation of the position relative to the State’s other banking or­ proposal would be in the public interest, and that ganizations would remain unchanged. the application should be approved. Bank ($8.2 million deposits), one of the smaller On the basis of the record, the application is banks in the Tulsa banking market, is the smallest approved for the reasons summarized above. The of 9 banks in its primary service area, which is transaction shall not be consummated (a) before approximated by a 30 square mile area in south­ the thirtieth calendar day following the date of this east Tulsa. Neither Admiral State Bank, nor Com­ Order or (b) later than three months after the date munity State Bank compete in the service area of of this Order, unless such period is extended for Bank. Applicant’s lead bank, the largest bank in good cause by the Board, or by the Federal Reserve Tulsa, is located downtown, eight miles from Bank of Richmond pursuant to delegated authority. Bank, and its service area fully encompasses By order of the Board of Governors, February that of Bank. However, there is no meaningful 11, 1972. competition between Bank and Applicant’s sub­ Voting for this action: Vice Chairman Robertson and Gov­ sidiary bank because shareholders owning 55 per ernors Daane, Brimmer and Sheehan. Absent and not voting: Chairman Burns and Governors Mitchell and Maisel. cent of Applicant’s stock control approximately 71.3 per cent of Bank’s stock. This close rela­ (Signed) Tynan Smith, tionship has existed since Bank’s organization in [seal] Secretary of the Board. 1968, and it appears that the relationship would FIRST TULSA BANCORPORATION, INC., continue to exist regardless of the Board’s action on TULSA, OKLAHOMA the present application. On the basis of the fore­ going, the Board concludes that consummation Order Approving Acquisition of Bank Stock of the proposed acquisition would not adversely First Tulsa Bancorporation, Inc., Tulsa, Okla­ affect competition in any relevant area. 2Includes Chatham and the independent City of Danville. Considerations relating to financial and man- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 FEDERAL RESERVE BULLETIN □ MARCH 1972 agerial resources and prospects as they relate to any benefit to the public in this case, we would Applicant, its subsidiaries, and Bank are satisfac­ deny the application. tory and consistent with approval of the applica­ tion although the major banking needs of Bank’s BANCOHIO CORPORATION, service area are presently being met. Applicant COLUMBUS, OHIO will continue to assist Bank in its credit analysis, investment policies, data processing services and Order Approving Acquisition of Bank loan participations. Thus, considerations relating BancOhio Corporation, Columbus, Ohio, a to the convenience and needs are consistent with bank holding company within the meaning of the approval. It is the Board’s judgment that the pro­ Bank Holding Company Act, has applied for the posed transaction would be in the public interest, Board’s approval under § 3(a)(3) of the Act (12 and that the application should be approved. U.S.C. 1842(a)(3)) to acquire 80 per cent or more On the basis of the record, the application is of the voting shares of The Ohio Savings & Trust approved for the reasons summarized above. The Company, New Philadelphia, Ohio (“Bank”). transaction shall not be consummated (a) before Notice of receipt of the application has been the thirtieth calendar day following the date of given in accordance with § 3(b) of the Act, and the this Order or (b) later than three months after the time for filing comments and views has expired. date of this Order, unless such period is extended The Board has considered the application and all for good cause by the Board, or by the Federal comments received in the light of the factors set Reserve Bank of Kansas City pursuant to delegated forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and authority. finds that: By order of the Board of Governors, February Applicant, the largest bank holding company 11, 1972. and second largest banking organization in Ohio, has 30 subsidiary banks controlling deposits of ap­ Voting for this action: Chairman Burns and Governors Daane, Maisel, and Sheehan. Voting against this action: Gov­ proximately $1.6 billion, representing 7.3 per cent ernors Robertson and Brimmer. Absent and not voting: Gov­ of the total commercial bank deposits in the State. ernor Mitchell. (All banking data are as of June 30, 1971, and re­ (Signed) Tynan Smith, flect holding company formations and acquisitions [seal] Secretary of the Board. approved by the Board through January 31, 1972.) Consummation of the proposal herein would in­ Dissenting Statement of Governors crease the percentage of total State deposits con­ Robertson and Brimmer trolled by Applicant slightly to 7.4 per cent and Applicant, through its control of the largest Applicant would remain the State’s second largest bank in the Tulsa banking market, indirectly holds banking organization. 30.7 per cent of the commercial bank deposits Bank with deposits of $21.0 million controls 13 in that market. That market is relatively con­ per cent of deposits within Tuscarawas County centrated, the two largest banks holding 56.9 per which approximates the relevant market within cent of commercial bank deposits therein. Al­ which the competitive aspects of the proposal are though Bank apparently is a satellite of Applicant, to be considered. Bank is the third largest of eight this is not justification for today’s Board action banks in the market. The two larger banks, one of which effectively forecloses the possibility, that which is affiliated with the State’s fifth largest this control might be terminated, thus effecting a holding company, hold 43 and 25 per cent, respec­ deconcentration of the relevant market. On the tively, of market deposits and are the only banks contrary, addressing itself to the importance of providing significant competition to Bank in its the preservation of such a possibility, the Supreme primary service area. Approval of the application Court has said: “[I]f concentration is already should stimulate competition in the New Philagreat, the importance of preventing even slight in­ delphia-Dover area and may eventually diminish creases in concentration and so preserving the pos­ the percentage of deposits held by the two larger sibility of eventual deconcentration is corre­ banks. spondingly great.” U.S. v. Philadelphia Nat’l Applicant’s closest subsidiary to Bank is located Bank, 374 U.S. 321, n. 42 (1963). 30 miles away. There is, therefore, no meaningful In view of the adverse effect consummation existing competition between Bank and any of of the proposed acquisition would have on Applicant’s subsidiaries. Due to size, distance, competition and in the absence of a showing of and the presence of intervening banks, it is con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 291 sidered unlikely that future competition will de­ a bank holding company within the meaning of velop between them. Consummation of this pro­ the Bank Holding Company Act, has applied for posal would thus foreclose neither existing nor the Board’s approval under § 3(a)(3) of the Act potential competition between Bank and any bank (12 U.S.C. 1842(a)(3)) to acquire 90 per cent or subsidiary of Applicant. Affiliation with Applicant more of the voting shares of First National Bank of is likely to enable Bank to compete more effective­ Titusville, Titusville, Florida (“Bank”). ly in the market while not having a detrimental Notice of receipt of the application has been effect on smaller banks within the market. Ac­ given in accordance with § 3(b) of the Act, and cordingly, the Board concludes that competitive the time for filing comments and views has ex­ considerations are consistent with approval. pired. The Board has considered the application The financial and managerial resources and fu­ and all comments received in the light of the ture prospects of Applicant and its subsidiaries factors set forth in § 3(c) of the Act (12 U.S.C. are regarded as satisfactory. Bank’s present man­ 1842(c)) and finds that: agement is faced with resolving loan and capital Applicant controls 23 banks with total aggregate problems. Applicant proposes to utilize its per­ deposits of $445 million, representing 3.0 per cent sonnel to strengthen loan administration; and Ap­ of commercial bank deposits in Florida and is plicant has committed itself to raise Bank’s capital the sixth largest banking organization in the State.1 to a level acceptable to its supervisory authorities Acquisition of Bank (deposits of $16 million) within 18 months through dividend restrictions would not change this ranking and would add and the injection of new capital if necessary. only one-tenth per cent to Applicant’s share of Accordingly, considerations related to financial and deposits in the State. There is no existing com­ managerial resources favor approval of the pro­ petition between any of Applicant’s subsidiaries posed acquisition. or Bank, with the closest subsidiary about 35 Applicant proposes to provide Bank with ex­ miles away. Moreover, due to this distance, the pertise which would permit Bank to offer directly large number of intervening banks and Florida’s FHA and VA insured loans and to expand other branching laws, there is little likelihood of sub­ banking services. Thus, considerations related stantial competition developing between this or any to convenience and needs of the communities in­ other of Applicant’s subsidiaries and Bank. Ad­ volved are consistent with approval. It is the ditionally, there is little probability of de novo Board’s judgment that the proposed transaction entry by Applicant into the Northern Brevard area would be in the public interest and that the applica­ in which Titusville is located since this area has tion should be approved. become economically unattractive due to the cut­ On the basis of the record, the application is backs in the space program at nearby Cape Ken­ approved for the reasons summarized above. The nedy. Moreover, Applicant’s acquisition of Bank transaction shall not be consummated (a) before could have pro-competitive effects since Bank is the thirtieth calendar day following the date of this only the sixth largest of 10 banks—with less than Order or (b) later than three months after the date 10 per cent of area deposits—and two of the larger of this Order, unless such period is extended for area banks are affiliated with large holding com­ good cause by the Board, or by the Federal Re­ panies. Applicant could enable Bank to more serve Bank of Cleveland pursuant to delegated vigorously compete with these institutions. Con­ authority. siderations relating to competition are consistent By order of the Board of Governors, February with approval of the application. 14,1972. The financial and managerial resources and prospects of Applicant, its subsidiary banks, and Voting for this action: Vice Chairman Robertson and Gov­ Bank are satisfactory and consistent with approval. ernors Mitchell, Daane, Maisel, Brimmer, and Sheehan. Ab­ sent and not voting: Chairman Burns. Considerations relating to the convenience and needs of the communities are also consistent with (Signed) Tynan Smith, approval of the application. It is the Board’s judg­ [seal] Secretary of the Board. ment that the proposed transaction would be in FIRST FLORIDA BANCORPORATION, the public interest and that the application should TAMPA, FLORIDA be approved. Order Approving Acquisition of Bank banking data are as of June 30, 1971, and reflect holding company formations and acquisitions approved by the Board through December First Florida Bancorporation, Tampa, Florida, 31,1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 FEDERAL RESERVE BULLETIN □ MARCH 1972 On the basis of the record, the application is ap­ ected earnings appear to be sufficient to service proved for the reasons summarized above. The the debt which it will incur upon consummation transaction shall not be consummated (a) before of the proposed transaction without adversely the thirtieth calendar day following the date of affecting Bank’s capital structure. The proposed this Order or (b) later than three months after the acquisition is not likely to have any significant date of this Order, unless such period is extended immediate effect on the convenience and needs of for good cause by the Board, or by the Federal the community. This aspect of the proposal is Reserve Bank of Atlanta pursuant to delegated consistent with approval of the application. It is authority. the Board’s judgment that the transaction would By order of the Board of Governors, February be in the public interest and that the application 14,1972. should be approved. On the basis of the record, the application is Voting for this action: Vice Chairman Robertson and Gov­ approved for the reasons summarized above. ernors Mitchell, Daane, Maisel, Brimmer, and Sheehan. Ab­ sent and not voting: Chairman Burns. The transaction shall not be consummated (a) before the thirtieth calendar day following the date (Signed) Tynan Smith, of this Order or (b) later than three months after [seal] Secretary of the Board. the date of this Order, unless such period is ex­ CLEARING BANCORPORATION, INC., tended for good cause by the Board, or by the CHICAGO, ILLINOIS Federal Reserve Bank of Chicago pursuant to delegated authority. Order Approving Formation of Bank By order of the Board of Governors, February Holding Company 14,1972. Clearing Bancorporation, Inc., Chicago, Il­ Voting for this action: Vice Chairman Robertson and Gov­ linois, has applied for the Board’s approval, ernors Mitchell, Daane, Maisel, Brimmer, and Sheehan. under § 3(a)(1) of the Bank Holding Company Absent and not voting: Chairman Burns. Act (12 U.S.C. 1842(a)(1)), for the formation of (Signed) Tynan Smith, a bank holding company through acquisition of [seal] Secretary of the Board. 89.9 per cent or more of the voting shares of State Bank of Clearing, Chicago, Illinois FIRST AT ORLANDO CORPORATION, (“Bank”). ORLANDO, FLORIDA Notice of receipt of the application has been given in accordance with § 3(b) of the Act, and Order Approving Acquisition of Banks the time for filing comments and views has ex­ First at Orlando Corporation, Orlando, Florida, pired. The Board has considered the application a bank holding company within the meaning of and all comments received in the light of the fac­ the Bank Holding Company Act, has applied for the tors set forth in § 3(c) of the Act (12 U.S.C. Board’s approval under § 3(a)(3) of the Act (12 1842(c)) and finds that: U.S.C. 1842(a)(3)) to acquire at least 90 per cent Applicant is a nonoperating corporation formed of the voting shares of The Commercial Bank & for the express purpose of acquiring Bank which Trust Company of Ocala, Ocala, Florida (“Com­ has aggregate deposits of approximately $48.9 mercial Bank”), and of Citizens Commercial Bank million. (All banking data are as of June 30, of Ocala, Ocala, Florida (“Citizens Bank”), a 1971.) All shareholders of Bank are beng ac­ proposed new bank. corded equal treatment. Since Applicant has no Notice of receipt of the applications has been present operations or subsidiaries, it appears that given in accordance with § 3(b) of the Act, and the consummation of the proposal would not affect time for filing comments and views has expired. existing or potential competition, nor have an The Board has considered the applications and adverse effect on any other bank in the area. all comments received in the light of the factors set The banking considerations are consistent with forth in § 3(c) of the Act (12 U.S.C. 1842(c)) approval of the application. The financial and man­ and finds that: agerial resources of Bank and its prospects are On the basis of the record, the applications are regarded as generally satisfactory. Applicant has approved for the reasons set forth in the Board’s not commenced operations; thus, its financial Statement of this date. The transactions shall not condition, management and prospects are de­ be consummated (a) before the thirtieth calendar pendent upon those of Bank. Applicant’s proj­ day following the date of this Order or (b) later Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 293 than three months after the date of this Order; and petition in Marion County in which Ocala is (c) Citizens Commercial Bank of Ocala, Ocala, located. The Department stated that Marion County Florida, shall be opened for business not later than was a particularly fast growing community and six months after the date of this Order. Each of a desirable one for de novo entry. Moreover, the the periods described in (b) and (c) may be ex­ Department asserted that Marion County was a tended for good cause by the Board, or by the concentrated market for which potential competi­ Federal Reserve Bank of Atlanta pursuant to dele­ tion was important. The Department concluded that gated authority. even though First at Orlando was only one among By order of the Board of Governors, February “several other large banking organizations” which 14,1972. would have to be considered as potential entrants into Marion County, the overall effects of per­ Approval of acquisition of The Commercial Bank & Trust mitting it to acquire both Commercial and Cit­ Company of Ocala. Voting for this action: Chairman Burns and Governors Mitchell, Daane, Maisel, Brimmer, and Shee­ izens Bank would have an adverse effect on com­ han. Voting against this action: Governor Robertson. petition. Approval of acquisition of Citizens Commercial Bank of Applicant took the position in reply to the De­ Ocala. Voting for this action: Chairman Burns and Governors partment’s comments that Marion County was Mitchell, Daane, and Sheehan. Voting against this action: Governors Robertson, Maisel, and Brimmer. not a concentrated market, pointing out it was one of the least concentrated in Florida. Addi­ (Signed) Tynan Smith, tionally, Applicant stated that Marion County’s [seal] Secretary of the Board. rate of growth was lower than the State’s growth Statement rate and that Marion County had a smaller popula­ tion per banking office than was present at the Nature of transaction. First at Orlando Corpora­ State level. For these reasons, Applicant argued tion, Orlando, Florida, a registered bank holding Marion County was not attractive for entry. company, has applied to the Board of Governors, There is little, if any, existing competition pursuant to § 3(a)(3) of the Bank Holding Com­ between the two banks sought to be acquired and pany Act (12 U.S.C. 1842(a)(3)), for prior ap­ any subsidiary of Applicant. Applicant’s closest proval of the acquisition of at least 90 per cent subsidiary is over 35 miles distant and there is of the voting shares of The Commercial Bank & little or no service overlap. There also is small Trust Company of Ocala, Ocala, Florida (“Com­ likelihood of any competition developing between mercial Bank”) and of Citizens Commercial Bank Commercial Bank and Citizens Bank since share­ of Ocala, Ocala, Florida (“Citizens Bank”), a holders of the former have subscribed for over 98 proposed new bank. per cent of the voting shares of the latter, so that Statutory considerations. Applicant controls Applicant’s acquisition of both banks would have 20 banks, with aggregate deposits of $670 mil­ little effect on the competitive situation existing lion, and is the fifth largest banking organization between them. in Florida with 4.6 per cent of deposits in the State. Consummation of the proposal would not have The acquisition of Commercial Bank (deposits a substantial effect on any potential competition of $42 million) and of Citizens Bank, a proposed between Applicant and either Commercial Bank or new bank, would increase Applicant’s share of Citizens Bank. Marion County is not a particularly deposits in the State by less than half a per cent.1 attractive market for de novo entry. The ratio of In connection with the review of the applications deposits per banking office in Marion County is the Board has considered a comment from the only a little more than half of the Statewide ratio Department of Justice which concluded that con­ and Marion County’s growth rate is not such that summation of the proposal would “clearly have an this situation will likely change in the near future. adverse effect on competition”. The Department The potential for entry through a foothold acquisi­ acknowledged that consummation would not elimi­ tion is also limited. The second and third largest nate any actual competition between either Citizens banks in the market are already affiliated with Bank or Commercial Bank, and any of Applicant’s holding companies. Two of the remaining inde­ subsidiaries. However, the Department stated that pendent banks in Marion County are in rural areas it believed that consummation of the proposal and are not of interest to Applicant, while the would have an adverse effect upon potential com­ remaining independent bank has shown no interest in being acquired by Applicant. Finally, when ^anking data are as of June 30, 1971, and reflect holding company formations and acquisitions approved through November 30, 1971. considering the small size of the market with total Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 FEDERAL RESERVE BULLETIN □ MARCH 1972 deposits of about only $120 million, Marion In general, we agree with the conclusions of the County with its six banks does not appear to be a majority concerning the acquisition of Commercial particularly concentrated market so that potential Bank. No existing competition would be eliminated competition is not as important as it might be in the and the proposal must be evaluated in light of its context of a more severely concentrated market. effects on potential competition. We agree that ad­ Moreover, though Commercial Bank is the largest verse effects on potential competition in the ac­ bank in Marion County, Applicant is unlikely to quisition of Commercial Bank alone are not serious gain a dominant position since the second and third enough to call for a denial of the application. largest banks in the market are subsidiaries of the Marion County is a concentrated market and in second and third largest banking organizations in such a market the Board should attempt to pre­ Florida. The Board concludes that the competitive serve as many alternatives for potential entrants effects of the proposal are not inconsistent with as possible. Citizens has one of the best locations approval of the applications. in the area, being located near an industrial park, The financial condition of Applicant, its sub­ junior college, and housing development; and its sidiary banks and of Commercial Bank and Citizens chartering will likely foreclose other entrants to Bank is satisfactory and prospects of each are that area for some period of time. favorable. These considerations are consistent with We agree, therefore, with the Department of approval of the applications. Consummation of Justice that Applicant’s proposed entry into Applicant’s proposal would have a beneficial effect Marion County through the acquisition of the on the convenience and needs in Marion County largest bank in the market, and a new bank in one since Applicant would enable Commercial Bank of its most desirable areas, would together have an and Citizens Bank to increase their effective lend­ adverse effect on competition which is not out­ ing capactities through participation arrangements weighed by any benefits to the public. Owners of with Applicant’s other subsidiaries. Applicant also both banks have stated that they would sell both proposes to assist Commercial Bank and Citizens banks as a package. Accordingly, since Appli­ Bank in approving and expanding their services, cant’s acquisition of the larger bank would be in with particular emphasis on trust services. Con­ the public interest, we would approve acquisition siderations relating to this factor lend some weight of both banks, on condition that Applicant sell the for approval of these applications. new bank before it is opened for business. Summary and conclusion. On the basis of all relevant facts contained in the record and in the light of the factors set forth in § 3(c) of the Act, Dissenting Statement of it is the Board’s judgment that the proposed trans­ Governor Robertson actions are in the public interest and that the ap­ for Denial of Both Applications plications should be approved. Applicant controls 20 banks (deposits $670 million) and is the fifth largest banking organiza­ Statement of Governors Maisel tion in the State and the leading banking organiza­ and Brimmer tion in Central Florida. It has applied to acquire FOR APPROVAL OF the Commercial Bank & Trust Company of Ocala THE COMMERCIAL BANK & TRUST COMPANY OF ($41.7 million deposits) and Citizens Commercial OCALA, AND, IN EFFECT, FOR DENIAL OF Bank of Ocala, a proposed new bank. Applicant CITIZENS COMMERCIAL BANK OF OCALA controls the largest banking organizations in In our judgment the acquisition of Commercial Orlando (70 miles to the southwest of Ocala), the Bank alone would be consistent with the public largest bank in Leesburg (35 miles to the south­ interest. The owners of Commercial Bank also east), the largest bank in Daytona (35 miles to the own Citizens Bank and have stated that they would northeast), and the second largest bank in Gaines­ sell the banks only as a package. The interests of ville (35 miles to the north). the present owners can be harmonized with the Commercial Bank is the largest of six banks in public interest by permitting Applicant’s acquisi­ Marion County with 34 per cent of deposits; the tion of both banks on condition that it sell the three largest banks therein control over 80 per new bank before it is opened for business. Ac­ cent of market deposits. In § 3 cases the Board cordingly, we believe it desirable to approve the should exercise its assigned responsibilities to application of Citizens Bank in limited circum­ promote competition, which would advance the stances that amount to a denial of the application. public interest. Clearly, Applicant’s de novo or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 295 foothold entry into Marion County would be pref­ cent of deposits in the area. Applicant’s present erable to the proposed acquisition—from a com­ subsidiaries are all located in or near the Houston petitive viewpoint—and could be considered SMS A, over 400 miles from Midland Bank. It likely because of the projected growth of the area. appears that consummation of the proposal would Moreover, Applicant’s proposal to acquire Cit­ not eliminate any existing competition and should izens Bank significantly increases the adverse strengthen Midland Bank’s ability to compete with competitive effects of the proposal. Citizens Bank’s the area’s largest bank. proposed location appears to be desirable and is Southwest Bank ($67.3 million in deposits) is close to the new Ocala Industrial Park and a new the third largest banking organization in the El housing development. For Applicant to acquire Paso area, and controls 11.9 per cent of deposits the largest bank in Marion County alone, or to­ in the area. Two El Paso chain-banking systems gether with the Bank’s affiliate, would have a have section 3(a)(1) applications pending before clear and significantly adverse effect on potential the Board. These two systems are the largest and competition. Finding no offsetting benefits to the second largest banking organizations in the area public, I would deny the applications. and, combined, control 78.2 per cent of deposits, and eight of the 13 banks in the area. Each of Ap­ FIRST CITY BANCORPORATION OF TEXAS, plicant’s present subsidiaries is over 700 miles INC., HOUSTON, TEXAS from Southwest Bank. It appears that consumma­ tion of the subject proposal would not eliminate Order Approving Acquisition of Bank any existing competition and may eventually lead First City Bancorporation of Texas, Inc., to some deconcentration among banks in the El Houston, Texas, a bank holding company within Paso area. the meaning of the Bank Holding Company Act, Although the banking needs of the Midlandhas applied for the Board’s approval under § 3(a) Odessa and El Paso areas, respectively, are gen­ (3) of the Act (12 U.S.C. 1842(a)(3)) to acquire erally being served now, the customers of both the assets and assume the liabilities of Midland Midland Bank and Southwest Bank should benefit National Corporation, Midland, which owns 83.3 from the proposed affiliations. Applicant could per cent of the voting shares of The Midland Na­ lend its expertise to both banks in making oil and tional Bank, Midland (“Midland Bank”), and petroleum loans, which should benefit the local 24.5 per cent of the voting shares of United Bank petroleum-oriented economies. Southwest Bank Shares, Inc., El Paso, a holding company owning could benefit from Applicant’s expertise with 100 per cent (less directors’ qualifying shares) of respect to commercial lending and trust activities. the shares of Southwest National Bank of El Paso, Considerations related to the convenience and El Paso (“Southwest Bank”), all in Texas. needs of the communities to be served lend some Notice of receipt of the application has been weight toward approval. given in accordance with § 3(b) of the Act, and the The financial and managerial resources and fu­ time for filing comments and views has expired. ture prospects of Applicant and its present sub­ The Board has considered the application and all sidiaries and of Midland Bank are regarded as comments received in the light of the factors set generally satisfactory. Southwest Bank is in need forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and of additional capital. Consummation of the pro­ finds that: posal herein should assure Southwest Bank of an Applicant, the third largest banking organization adequate source for capital funds as needed. Con­ in Texas, controls six banks with aggregate de­ siderations related to the resources and future posits of $1,186.3 million, which amounts to 4.5 prospects of Applicant and its present and pro­ per cent of the total commercial bank deposits in posed subsidiaries are consistent with approval. Texas. Consummation of the proposal herein would It is the Board’s judgment that the proposed trans­ increase Applicant’s share to 4.8 per cent.1 action is in the public interest and that the applica­ Midland Bank ($78.7 million in deposits), the tion should be approved. second largest of eight banks in the Midland- On the basis of the record, the application is Odessa area, holds 19.2 per cent of deposits there, approved for the reasons summarized above. The while the largest bank in this area holds 42.1 per transaction shall not be consummated (a) before the thirtieth calendar day following the date of this 1 Since Applicant will indirectly control only 24.5 per cent of the vot­ Order or (b) later than three months after the date ing shares of Southwest Bank, the deposit totals for that bank have not been included in that figure. of this Order, unless such period is extended for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 FEDERAL RESERVE BULLETIN □ MARCH 1972 good cause by the Board, or by the Federal Re­ Atlantic Counties) with 12.3 per cent of deposits. serve Bank of Dallas pursuant to delegated author­ Approval of the acquisition of City National, the ity. smaller of two banks in Millville and the eighth By order of the Board of Governors, February largest bank in the market, would result in Ap­ 14, 1972. plicant becoming the largest of twelve banking organizations in the market with 17.2 per cent of Voting for this action: Vice Chairman Robertson and Gover­ deposits. nors Mitchell, Daane, Maisel, Brimmer, and Sheehan. Absent and not voting: Chiarman Burns. Although City National and Cumberland Na­ (Signed Tynan Smith, tional (deposits of $25.5 million) are located [seal] Secretary of the Board. eleven miles apart, there appears to be no significant existing competition between the two banks. UNITED JERSEY BANKS, Moreover, based on the facts of record, it is con­ HACKENSACK, NEW JERSEY sidered unlikely that potential competition would develop between Applicant and Bank since Ap­ Order Approving Acquisition of Bank plicant is unlikely to enter Millville by charter­ United Jersey Banks, Hackensack, New Jersey, ing a new bank and since de novo branching into a bank holding company within the meaning of Millville is barred by the home office protection the Bank Holding Company Act, has applied for provision of the New Jersey Banking Statute. the Board’s approval under § 3(a)(3) of the Act Nevertheless, unconditioned approval of this ap­ (12 U.S.C. 1842(a)(3)) to acquire 100 per cent plication would appear to have an adverse com­ (less directors’ qualifying shares) of the voting petitive impact in that home office protection could shares of the successor by merger to The City Na­ be perpetuated in Millville thus foreclosing com­ tional Bank of Millville, Millville, New Jersey petitors from branching into Millville. This pos­ (“City National”). The bank into which City sible anti-competitive effect of approval could National is to be merged has no significance except be eliminated if home office protection were not as a means of acquiring all of the shares of City perpetuated. Accordingly, approval of the ap­ National. Accordingly, the proposed acquisition plication is conditioned upon Applicant filing a of the shares of the successor organization is merger application and, subject to supervisory treated herein as the proposed acquisition of shares approval, merging City National into Cumberland of City National. National within one year of the date of this Order Notice of receipt of the application has been so as to remove home office protection from Mill­ given in accordance with § 3(b) of the Act, and the ville unless, within such one year period, there time for filing comments and views has expired. is a change in New' Jersey law which would ac­ The Board has considered the application and all complish the same result. On that basis and after comments received in the light of the factors set consideration of the record, the Board concludes forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and that no significant adverse competitive effects finds that: are likely to result from approval of the application. Applicant, with nine subsidiary banks holding The financial and managerial resources and aggregate deposits of $956.9 million, is the future prospects of Applicant, its subsidiaries, largest banking organization in New Jersey with and the proposed subsidiary appear to be satis­ 6.1 per cent of the commercial bank deposits in factory. Applicant’s ability to provide City Na­ the State. (All banking data are as of June 30, tional with management succession lends some 1971, and reflect holding company formations and weight for approval. Applicant proposes to ex­ acquisitions approved through November 30, pand City National’s trust and investment services, 1971.) Consummation of the proposed acquisition to expand City National’s commercial loan pro­ of City National (deposits of $12.4 million) would grams to include new types of loans, such as increase only slightly Applicant’s share of state­ accounts receivable financing and construction wide commercial bank deposits. financing, to provide data processing services, and Applicant, through its subsidiary, The Cumber­ to improve facilities. Convenience and needs land National Bank of Bridgeton, New Jersey factors, therefore, lend some weight toward ap­ (“Cumberland National”), is the fifth largest proval. banking organization within the relevant market It is the Board’s judgment that the proposed (which is approximated by Cumberland County acquisition as conditioned is in the public interest and adjacent portions of Salem, Gloucester, and and should be approved. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 297 On the basis of the record, the application is and needs factors or managerial and financial approved for the reasons summarized above. This considerations, they do not outweigh the anti­ order is entered on the condition that United Jersey competitive effects of the acquisition, a statutory Banks will file a merger application and, subject necessity where—as here—competition would to supervisory approval, merge The City National be substantially lessened. Bank of Millville, Millville, New Jersey, into On the basis of the record, it is my judgment The Cumberland National Bank of Bridgeton, that the proposed acquisition would not be in the Bridgeton, New Jersey, within one year of the public interest, and that the application should be date of this Order so as to remove home office denied. protection from Millville unless, within such one year period, there is a change in New Jersey law CHARTER NEW YORK CORPORATION, which would accomplish the same result. NEW YORK, NEW YORK The transaction approved hereby shall not be consummated (a) before the thirtieth calendar day Order Approving Acquisition of Bank following the date of this Order or (b) later than Charter New York Corporation, New York, three months after the date of this Order, unless New York, a bank holding company within the such period is extended for good cause by the meaning of the Bank Holding Company Act, has Board, or by the Federal Reserve Bank of New applied for the Board’s approval under § 3(a)(3) York pursuant to delegated authority. of the Act (12 U.S.C. 1842(a)(3)) to acquire 100 By order of the Board of Governors, February per cent of the voting shares of Bank of Babylon, 17,1972. New York (“Bank”). Voting for this action: Chairman Burns and Governors Daane, Notice of receipt of the application has been Maisel, and Sheehan. Voting against this action: Governor given in accordance with § 3(b) of the Act, and Robertson. Absent and not voting: Governors Mitchell and the time for filing comments and views has ex­ Brimmer. pired. The Board has considered the application (Signed) Tynan Smith, and all comments received in the light of the fac­ [seal] Secretary of the Board. tors set forth in § 3(c) of the Act (12 U.S.C. Dissenting Statement of Governor 1842(c) and finds that: Robertson Applicant, the ninth largest banking organiza­ tion in New York, controls nine banks with total It is incontrovertible that the proposed acquisi­ domestic deposits of $4.7 billion, representing tion would eliminate existing competition between approximately 4.9 per cent of the State’s total Cumberland National, one of Applicant’s subsid­ commercial deposits. (Unless otherwise noted, iary banks, and City National. Applicant would banking data are as of June 30, 1971, adjusted to increase its market share from 12.3 per cent to 17.2 reflect holding company formations and acquisi­ per cent and would become the largest of 12 tions through December 30, 1971.) Upon acquisi­ banking organizations within the market. Further­ tion of Bank (deposits of $57.4 million), Applicant more, the proposed acquisition would remove the would not increase its present ranking nor signifi­ only independent bank in Millville and one of the cantly enlarge its share of State deposits. few independent banks within the market remain­ Bank operates seven offices in the Babyloning for acquisition by banking organizations not Islip banking market where it is the third largest of heretofore represented in the market. thirteen banks, controlling 12.2 per cent of Allowing a major holding company to expand market deposits.1 Applicant’s closest subsidiary through combination with one of the remain­ bank is located 50 miles from Bank in New York ing independent banks, in a market where it is City. None of Applicant’s subsidiary banks may already represented, is undesirable standing alone; branch into Bank’s market until 1976 when State­ but even worse, it could lead to the domination wide branching will become effective. Applicant’s of a market by a few large banking organizations, subsidiary banks derive only minimal banking since it leaves outside organizations only the more business from Bank’s market and, therefore, there difficult route of de novo entry. Competition is only nominal existing competition. Consum­ would be better served if City National were pre­ mation of the proposal would not eliminate any served as a vehicle for entry by an organization not significant existing competition and would not presently represented in the market. No matter how one dresses up the convenience 'Banking data related to market position are as of June 30, 1970. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 FEDERAL RESERVE BULLETIN □ MARCH 1972 adversely affect any competing bank in any relevant proval under § 3(a)(1) of the Bank Holding Com­ area. pany Act (12 U.S.C. 1842(a)(1)) of formation of Some potential competition between Applicant a bank holding company through acquisition of and Bank would be foreclosed upon consummation 80 per cent or more of the voting shares of The of the proposal since Applicant could enter Bank’s First National Bank and Trust Company of Michi­ market de novo or through acquisition of a smaller gan, Kalamazoo, Michigan (“Kalamazoo Bank”); bank. However, Applicant does not seem to be a The Merchants & Miners Bank, Calumet, Michi­ likely de novo entrant and only two banks smaller gan (“Calumet Bank”); and The Deerfield State than Bank appear available for acquisition. Com­ Bank, Deerfield, Michigan (“Deerfield Bank”). petitive considerations related to acquisition of Notice of receipt of the application has been those two banks do not differ materially from the given in accordance with § 3(b) of the Act, and acquisition of Bank. Further, approval of the the time for filing comments and views has ex­ proposal would remove home office protection pired. The Board has considered the application from the Village of Babylon and have the pro- and all comments received in the light of the factors competitive effect of enabling other banking set forth in § 3(c) of the Act (12 U.S.C. 1842(c)) institutions to branch into the area. Therefore, and finds that: consummation of the proposal would have no sig­ Applicant, a newly organized corporation,was nificant adverse effect on potential competition formed by the present management of the Kala­ and may have pro-competitive impact. mazoo Bank for the purpose of becoming a bank The financial and managerial resources of holding company. Upon consummation of the pro­ Applicant and Bank are generally satisfactory posal herein, Applicant would control three sub­ and consistent with approval. Applicant proposes sidiary banks with total deposits of approximately to expand Bank’s services, thereby providing $282 million, representing about 1.3 per cent of another competitive alternative for specialized the total commercial bank deposits in Michigan, banking services. Accordingly, considerations and would be the eleventh largest banking organiza­ relating to convenience and needs of the com­ tion in the State. (All banking data are as of June munity lend some weight toward approval. It is 30, 1971.) the Board’s judgment that the proposed transaction Kalamazoo Bank ($258.2 million deposits), would be in the public interest and that the ap­ located in southwestern Michigan, operates 26 plication should be approved. offices in and around the city of Kalamazoo, and On the basis of the record, the application is is the largest of twenty banks operating within its approved for the reasons summarized above. The service area, which is approximated by all of transaction shall not be consummated (a) before Kalamazoo County and portions of the five counties the thirtieth calendar day following the date of adjacent thereto. Calumet Bank ($17.3 million de­ this Order or (b) later than three months after posits), located in the Upper Peninsula of Michigan, the date of this Order, unless such period is operates three offices, and is the second largest of extended for good cause by the Board, or by the the five banks operating within its service area, Federal Reserve Bank of New York pursuant to which is approximated by all the Keeweenaw delegated authority. County and the greater portion of Houghton By order of the Board of Governors, February County. Deerfield Bank ($6.5 million deposits), 17, 1972. located in southeastern Michigan, operates one office, and is the smallest of the eighteen banks Voting for this action: Chairman Burns and Governors Rob­ operating within its service area, which is ap­ ertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. proximated by portions of Lenawee and Monroe (Signed) Tynan Smith, Counties. The record discloses that there is no [seal] Secretary of the Board. significant existing competition among the pro­ posed subsidiary banks, primarily due to the FIRST NATIONAL FINANCIAL distances separating the banks (520 miles and 90 CORPORATION, KALAMAZOO, MICHIGAN miles separate Calumet Bank and Deerfield Bank, respectively, from the closest offices of the Kala­ Order Approving Formation mazoo Bank; and the Deerfield Bank is located of Bank Holding Company about 600 miles from the closest office of Calumet First National Financial Corporation, Kalama­ Bank.) Moreover, in light of the restrictive Michi­ zoo, Michigan, has applied for the Board’s ap­ gan branching law, it does not appear that any Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 299 significant potential competition would be fore­ Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. closed as a result of consummation of Applicant’s proposal. It appears that the overall effect of the (Signed) Tynan Smith, proposal on competition would be favorable, [seal] Secretary of the Board. since the Deerfield Bank and Calumet Bank should be able to compete more effectively in their respec­ UNITED BANKS OF COLORADO, INC., tive markets as subsidiaries of Applicant. DENVER, COLORADO The financial and managerial resources of Ap­ Order Approving Acquisition of Bank plicant appear to be satisfactory, and its prospects, which are dependent upon those of its subsidiary United Banks of Colorado, Inc., Denver, banks, appear to be favorable. The financial and Colorado, a bank holding company within the managerial resources and prospects of Deerfield meaning of the Bank Holding Company Act, Bank and Calumet Bank are satisfactory and con­ has applied for the Board’s approval under § 3(a)(3) sistent with approval of the application. The of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 Board notes that the capital position of the Ka­ per cent or more of the voting shares of The lamazoo Bank is somewhat lower than desirable St. Vrain Valley Bank, Longmont, Colorado and should be augmented. Although the main­ (“Bank”). tenance of adequate capital positions at subsidiary Notice of receipt of the application has been banks of the holding company is a matter of serious given in accordance with § 3(b) of the Act, and concern to the Board, the circumstances of this the time for filing comments and views has ex­ case do not indicate that the situation warrants pired. The Board has considered the application denial of the application. The holding company and all comments received in the light of the fac­ structure should offer better prospects for im­ tors set forth in § 3(c) of the Act (12 U.S.C. 1842 proving the capital position of the Kalamazoo (c)) and finds that: Bank. Other considerations relating to the financial Applicant controls 10 banks with aggregate and managerial resources and prospects of Kala­ deposits of $684.7 million, which amounts to mazoo Bank are satisfactory and consistent with 14.9 per cent of the total commercial bank deposits approval of the application. in Colorado. The considerations relating to convenience and Bank (deposits $6.8 million) is the smallest of needs of the communities to be served lend weight three banks in Longmont and the eighth largest toward approval of the application. As a subsidiary of nine banking organizations in Boulder County, of a holding company, Kalamazoo Bank would holding 2.9 per cent of deposits in commercial be in a better position to serve the growing needs banks in that County. Applicant’s nearest sub­ of its service area. Furthermore, Applicant pro­ sidiary is located 15 miles from Bank in the City poses to assist Deerfield Bank and Calumet Bank of Boulder, and holds 11.8 per cent of the deposits in expanding their services to include consumer in Boulder County. Consummation of the pro­ loans, agricultural loans, economic development, posed transaction would increase Applicant’s share and computer services. Applicant will also be able of deposits to 14.7 per cent. However, the largest to assist its subsidiary banks by providing a source and second largest banking organizations in the of qualified management personnel. It is the County control 40.9 per cent and 15.6 per cent Board’s judgment that consummation of the pro­ of deposits, respectively, and affiliation with Ap­ posal would be in the public interest, and that the plicant should enable Bank to compete more ef­ application should be approved. fectively with these two larger banking organiza­ On the basis of the record, the application is tions and with the larger banks in Longmont. It approved for the reasons summarized above. The appears that consummation of the proposal would transaction shall not be consummated (a) before not eliminate any meaningful existing competition, the thirtieth calendar day following the date of and in view of the distance involved and Colorado’s this Order or (b) later than three months after the laws prohibiting branching, it does not appear that date of this Order, unless such period is extended any such competition is likely to develop. for good cause by the Board, or by the Federal Applicant intends to enlarge Bank’s lending Reserve Bank of Chicago pursuant to delegated capacity through participations, to assist Bank authority. in making agricultural loans, to provide trust By order of the Board of Governors, February services through Applicant’s lead bank, and to 17, 1972. aid Bank in advertising and market research. Con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 FEDERAL RESERVE BULLETIN □ MARCH 1972 siderations related to the convenience and needs the eleventh largest of fourteen banks in the Akron of the community to be served lend some weight banking market (approximated by Summit and in favor of approval. Considerations related to the Portage Counties and the City of Wadsworth), financial and managerial resources and future controlling 1.6 per cent of market deposits. (Bank­ prospects of Applicant and its present subsidiaries ing data are as of June 30, 1971, and reflect hold­ and of Bank are generally satisfactory and con­ ing company formations and acquisitions approved sistent with approval. It is the Board’s judgment through December 31, 1971.) that the proposed transaction is in the public in­ The nearest subsidiary of Applicant to Bank is terest and that the application should be approved. the Portage National Bank (“Portage Bank”) in On the basis of the record, the application is Kent, located 25 miles northeast of Bank. Al­ approved for the reasons summarized above. The though Portage Bank competes in the Akron bank­ transaction shall not be consummated (a) before the ing market, holding 4.6 per cent of market de­ thirtieth calendar day following the date of this posits, direct competition between Bank and Port­ Order or (b) later than three months after the date of age Bank is not substantial due to the location of this Order, unless such period is extended for the City of Akron and sixty banking offices of good cause by the Board, or by the Federal Re­ other banking institutions in the area intervening serve Bank of Kansas City pursuant to delegated between Bank and Portage Bank and the absence authority. of any overlap in the service areas of the two banks. By order of the Board of Governors, February Consummation of the proposed acquisition would 18, 1972. not, therefore, eliminate substantial existing com­ petition. Furthermore, the development of potential Voting for this action: Chairman Burns and Governors Robert­ competition appears unlikely, in view of applica­ son, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Maisel. tion of the State’s restrictive branching law and in view of the sizable number of intervening bank­ (Signed) Tynan Smith, [seal] Secretary of the Board. ing offices separating them. The financial and managerial resources and HUNTINGTON BANCSHARES future prospects of Applicant and Bank are satis­ INCORPORATED, COLUMBUS, OHIO factory and consistent with approval of the applica­ tion. Applicant intends to provide Bank’s cus­ Order Approving Acquisition of Bank tomers with a qualified trust officer and to assist Huntington Bancshares Incorporated, Colum­ Bank in the provision of international banking bus, Ohio, a bank holding company within the services, as well as to assist Bank in locating future meaning of the Bank Holding Company Act, has branch sites. Considerations relating to the con­ applied for the Board’s approval under § 3(a)(3) venience and needs of the community to be served of the Act (12 U.S.C. 1842(a)(3)) to acquire 80 lend weight toward approval. It is the Board’s per cent or more of the voting shares of The First judgment that the transaction is in the public in­ National Bank of Wadsworth, Wadsworth, Ohio terest and should be approved. (“Bank”). On the basis of the record, the application is Notice of receipt of the application has been approved for the reasons summarized above. given in accordance with § 3(b) of the Act, and the The transaction shall not be consummated (a) time for filing comments and views has expired. before the thirtieth calendar day following the The Board has considered the application and all date of this Order or (b) later than three months comments received in the light of the factors set after the date of this Order, unless such period is forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and extended for good cause by the Board, or by the finds that: Federal Reserve Bank of Cleveland pursuant to Applicant has 10 subsidiary banks holding ag­ delegated authority. gregate deposits of approximately $880.9 million, By order of the Board of Governors, February representing 4.0 per cent of the commercial bank 18, 1972. deposits in Ohio. Acquisition of Bank would in­ crease Applicant’s control of commercial bank Voting for this action: Chairman Burns and Governors Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent deposits in the State by approximately 0.1 per and not voting: Governor Maisel. cent, and Applicant’s rank as the sixth largest banking organization in the State would remain (Signed) Tynan Smith, unchanged. Bank ($22.2 million in deposits) is [seal] Secretary of the Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 301 FIRST SOUTHWEST BANCORPORATION, bank, The First National Bank of Waco, Waco, INC., WACO, TEXAS Texas (“First National”), with deposits of ap­ proximately $118.5 million, representing 0.4 per Order Denying Acquisition of Banks cent of total commercial bank deposits in the First Southwest Bancorporation, Inc., Waco, State. Applicant also owns 12.9 per cent of voting Texas, has applied for the Board’s approval under shares of the Kilgore Bank, and 24.9 per cent of § 3(a)(3) of the Bank Holding Company Act (12 the voting shares of the Bellmead Bank, Long­ U.S.C. 1842(a) (3)) to acquire 100 per cent (less view Bank, Port Arthur Bank, and First Bank and directors’ qualifying shares) of the successors by Trust of Richardson, Richardson, Texas (“Rich­ reorganization to Bellmead State Bank, Waco, ardson Bank”). (All banking data are as of June and East Texas Bank & Trust Company, Long­ 30, 1971, and reflect holding company forma­ view, and the successors by merger to Kilgore tions and acquisitions approved by the Board National Bank, Kilgore, and Sabine National through January, 1972.) State-wide concentration Bank of Port Arthur, Port Arthur, all in Texas. of banking resources would not be significantly Notice of receipt of the application has been affected as a result of consummation of the sub­ given in accordance with § 3(b) of the Act, and the ject proposal. time for filing comments and views has expired. Applicant’s First National Bank and Bellmead The Board has considered the applications and all Bank are both located within the Waco SMS A, comments received in light of the factors set forth which approximates the relevant banking market in § 3(c) of the Act (12 U.S.C. 1842(c)). with respect to the proposed acquisition of Bell­ On the basis of the record, the applications mead Bank. On the basis of deposits, First Na­ are denied for the reasons set forth in the Board’s tional Bank, the largest of seven banks within Statement of this date. Waco and of 14 banks within the market, controls By order of the Board of Governors, February 35 per cent of the market’s commercial bank de­ 18, 1972. posits; Bellmead Bank is the seventh largest bank in the market, controlling 3.6 per cent of market Voting for this action: Chairman Burns and Governors deposits. In addition, Applicant’s principal stock­ Robertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. holder holds, as an individual and as Trustee, (Signed) Tynan Smith, majority control of First Financial Corporation, a [seal] Secretary of the Board. registered bank holding company, owning 25.6 per cent of Bellmead Bank and 24 per cent of Statement Westview National Bank, Waco, Texas. Westview First Southwest Bancorporation, Inc., Waco, National Bank, with deposits of $17.5 million, is Texas, a registered bank holding company, has the fifth largest bank within Waco and the market, applied to the Board of Governors, pursuant to and has 5 per cent of market deposits. Both Bell­ section 3(a)(3) of the Bank Holding Company mead Bank and the Westview National Bank were Act of 1956 (12 U.S.C. 1842 (a)(3)), for prior ap­ organized by principals of First National Bank and proval of the acquisition of 100 per cent (less existing competition between the three banks is directors’ qualifying shares) of the voting shares of regarded as minimal. The combined deposits of the successors by reorganization to Bellmead these three banks represent 48 per cent of total State Bank, Waco (“Bellmead Bank”), and East Waco deposits and 43.5 per cent of total market Texas Bank & Trust Company, Lonview (“Long­ deposits. The deposits of these three banks, when view Bank”), and the successors by merger to combined with the deposits of the second largest Kilgore National Bank, Kilgore (“Kilgore Bank”), banking organization in the Waco banking mar­ and Sabine National Bank of Port Arthur, Port ket, places 75 per cent of total market deposits Arthur (“Port Arthur Bank”), all in Texas. The under control or influence of the two largest bank­ banks into which the four named existing banks ing organizations within the market. Denial of the are to be reorganized or merged have significance Bellmead application would not alter existing only insofar as they are a means of acquiring all relationships. Nevertheless, the size of the market of the shares of those four banks. Accordingly, and the concentration of bank resources within the proposed acquisition of the shares of the suc­ the market are such that, despite the existing rela­ cessor organizations is treated herein as the pro­ tionship, competitive considerations are regarded posed acquisitions of existing banks. as slightly adverse. Statutory considerations. Applicant controls one Kilgore Bank, with deposits of $16.3 million, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 FEDERAL RESERVE BULLETIN □ MARCH 1972 and Longview Bank, with deposits of $13.6 mil­ purchased from its principal shareholder all the lion, are both located in Gregg County which, shares of Fidelity Services Corporation, Waco, together with adjoining portions of Harrison and Texas, a bank management and service company. Rusk Counties, form the relevant banking market. In return, the principal shareholder and affiliated Kilgore Bank is the largest of two banks in Kilgore persons and entities received Applicant’s twoand the seventh largest in the market area, while year promissory notes as payment. Taking into Longview Bank is the fourth largest bank in Long­ account the differences between the sale for view, and the ninth largest bank in the market. The promissory notes and the stock ekchanges con­ combined deposits of the two banks would make templated in the present transactions, the price per Applicant the third largest banking organization share paid to the principal stockholder and af­ in the market with 11.2 per cent of total market filiated persons and entities in December, 1970, deposits. The two banks have been affiliated since appears to greatly exceed the approximate value to late 1968, when Applicant’s principal shareholder be offered for the remaining shares. The price per and affiliated persons and entities acquired control. share paid to the principal stockholder and af­ Absent this recent common control, it is reasonably filiated persons and entities also appears to be concluded that the two banks would compete to far in excess of the price per share originally some extent. Competitive considerations regarding paid by them and far in excess of the book value acquisition of both the Longview and Kilgore of the shares. Applicant has not justified the sub­ Bank are regarded as slightly adverse. stantial disparity between the prices the principal Port Arthur Bank, with deposits of $18.7 mil­ shareholder and affiliated persons and entities lion, is the eighth largest bank in its market con­ received and the approximate value offered in the trolling 3 per cent of market deposits. Port Arthur proposed transactions. As the Board has on a Bank is located almost 200 miles away from the number of occasions stated, the failure to make closest of the other banks in which Applicant an equivalent offer to minority shareholders is has an interest. There is no significant competition viewed as an adverse circumstance in considera­ between them. Competitive considerations with re­ tion of an application (e.g., 1971 Bulletin 415 spect to Port Arthur Bank are regarded as con­ and 688). sistent with approval. Further concern as to whether Applicant would Factors relating to the convenience and needs be a source of strength to its subsidiary banks of the communities involved are consistent with, arises with respect to the relationship between Ap­ but do not provide significant support for approval plicant’s subsidiary, Fidelity Services Corpora­ of the application. Although the convenience and tion, and the proposed subsidiary banks. Fidelity needs aspects are slightly favorable and the com­ Services Corporation has received management petitive effects of the proposed acquisitions, con­ fees from the banks involved which in some in­ sidered alone, are not serious enough to bar ap­ stances, in the opinion of the Board and other proval, the Board’s inquiry does not end there. supervisory authorities, appear to be excessive. The Board believes that a holding company should To the extent that such fees are excessive, their be a source of financial and managerial strength imposition has operated to the detriment of the for the banks in its system, rather than vice versa, bank’s minority shareholders and possibly to the and that every proposed acquisition should be bank itself. closely examined to determine whether it serves Applicant contends that the Board’s judgment certain private interests to the undue disadvantage on these applications should not be affected by of the interests of the bank or its minority share­ transactions taking place prior to the 1970 Amend­ holders. In this regard, the history of Applicant ments to the Holding Company Act, that the pro­ and its previous relationships with the banks to be posals before the Board are separate from those acquired is relevant. transactions, and that these previous transactions Applicant’s principal shareholder and affiliated have been fully disclosed to share holders, who, persons and entities controlled at least 51 per cent in any event, have a statutory right of dissent. of Bellmead Bank, Longview Bank, Kilgore The Board notes that although full disclosure; Bank, Port Arthur Bank, and Richardson Bank until asserted by Applicant was made at a later date, mid-December 1970, at which time, Applicant the initial proxy solicitation with respect to two of acquired from the above-named its present less the banks did not make such disclosure and that than 25 per cent ownership interest in each of the Applicant has withdrawn an application where a above banks. At the same time, applicant also substantial number of dissenting votes were cast Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 303 against reorganization. In any event, the Board’s Inasmuch as the proposal constitutes a cor­ decision is not based on a subjective judgment porate reorganization and reflects no expansion of particular shareholders’ feelings, but rather on a of corporate interests or significant change in judgment of general management attitude toward the character of the banking facilities involved, the operations of the proposed subsidiary banks consummation of the proposal would eliminate as reflected by the totality of circumstances dis­ neither existing nor potential competition; nor does cussed. The Board is unable to conclude that con­ it appear that there would be any adverse effects siderations relating to the management factor are on any bank in the area. consistent with approval of Applicant’s proposals. The financial and managerial resources and While denial of the applications may not im­ prospects of Applicant and Bank are regarded mediately affect the existing relationships, approval as generally satisfactory and consistent with ap­ would make these relationships more permanent proval of the application. The convenience and and would represent Board sanction of the treat­ needs of the communities involved would not be ment accorded by Applicant to both minority share­ immediately affected by consummation of this holders and the banks involved. The public interest proposal but improved services may be provided would not be served by such action. in the future under the more flexible corporate In light of the above, it is the Board’s judgment structure of the holding company. It is the Board’s that the proposed transactions would not be in the judgment that the transaction would be in the public public interest and should not be approved. interest, and that the application should be ap­ proved. TENNESSEE VALLEY BANCORP, INC., On the basis of the record, the application is NASHVILLE, TENNESSEE approved for the reasons summarized above. The Order Approving Formation of Bank transaction shall not be consummated (a) before Holding Company the thirtieth calendar day following the date of Tennessee Valley Bancorp, Inc., Nashville, this Order or (b) later than three months after the Tennessee, has applied for the Board’s approval date of this Order, unless such period is extended under § 3(a)(1) of the Bank Holding Company for good cause by the Board, or by the Federal Act (12 U. S. C. 1842(a)( 1)) of formation of a bank Reserve Bank of Atlanta pursuant to delegated holding company through acquisition of 100 per authority. By order of the Board of Governors, February cent of the voting shares of the successor by merger to Commerce Union Bank, Nashville, 22, 1972. Tennessee (“Bank”). Voting for this action: Chairman Burns and Governors The bank with which Bank will merge has no Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent significance except as a means of acquiring the and not voting: Governor Maisel. voting shares of Bank. Accordingly, the proposed (Signed) Tynan Smith, acquisition of the shares of the successor organiza­ [seal] Secretary of the Board. tion is treated herein as the proposed acquisition of the shares of Bank. AMERICAN TRADING COMPANY, Notice of receipt of the application has been BRUNSWICK, GEORGIA given in accordance with § 3(b) of the Act, and Order Approving Retention of Bank the time for filing comments and views has ex­ pired. Pursuant to the Board’s request for his American Trading Company, Brunswick, Geor­ views and recommendation, the Superintendent of gia, a bank holding company within the meaning Banks for the State of Tennessee responded that of the Bank Holding Company Act, has applied he had no objection to the application. The Board for the Board’s approval under § 3(a)(1) of the has considered the application and all comments Act (12 U.S.C. 1842(a)(1)) to retain1 50.6 per received in the light of the factors set forth in § 3(c) 'On April 5, 1971, Applicant without prior Board approval acquired of the Act (12 U.S.C. 1842(c)) and finds that: the shares of Bank which it has applied to retain. On June 22, 1971, the Applicant is a newly organized corporation Board, in order to avoid impositions of undue hardship, ordered that formed for the purpose of becoming a bank hold­ any company which acquired a bank between December 31, 1970 and June 22, 1971, without first securing prior Board approval because of ing company. Bank, with deposits of $362.9 lack of knowledge of that requirement might file for such approval by million as of June 30, 1971, is the fourth largest August 31, 1971. Applicant apparently lacked knowledge of the require­ ments of the Act at the time it acquired the shares of Bank, and had filed a bank in the Nashville banking market and the tentative application with the Federal Reserve Bank of Atlanta by August seventh largest bank in the State of Tennessee. 31, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 FEDERAL RESERVE BULLETIN □ MARCH 1972 cent of the voting shares of State Bank of Kings­ approved for the reasons summarized above. land, Kingsland, Georgia (“Bank”). By order of the Board of Governors, February Notice of receipt of the application has been 22, 1972. given in accordance with § 3(b) of the Act, and Voting for this action: Chairman Burns and Governors the time for filing comments and views has ex­ Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent pired. The Board has considered the applica­ and not voting: Governor Maisel. tion and all comments received in the light of (Signed) Tynan Smith, the factors set forth in § 3(c) of the Act (12 U.S.C. [seal] Secretary of the Board. 1842(c)) and finds that: Prior to its acquisition of Bank, Applicant had FIRST TENNESSEE NATIONAL been engaged in selling excess capital stock of the CORPORATION, MEMPHIS, TENNESSEE American National Bank of Brunswick resulting from severance of that bank from the Citizens and Order Approving Acquisition of Bank Southern Holding Company. Bank, with deposits First Tennessee National Corporation, Memphis, of $3.6 million representing 0.05 per cent of de­ Tennessee, a bank holding company within the posits held by commercial banks in Georgia, meaning of the Bank Holding Company Act, has is the fourth largest of eight commercial banks applied for the Board’s approval under § 3(a)(3) of located in the Kingsland banking market which is the Act (12 U.S.C. 1842(a)(3)) to acquire 100 per approximated by Camden and northeastern Charl­ cent (less directors’ qualifying shares) of the vot­ ton Counties in Georgia and northern Nassau ing shares of the successor by merger to The County in Florida, and holds approximately 10.3 Kingsport National Bank, Kingsport, Tennessee per cent of commercial bank deposits in that (“Bank”). The bank into which Bank is to be market. (Banking data are as of June 30, 1971.) merged has no significance except as a means to Inasmuch as the acquisition constituted a cor­ facilitate the acquisition of the voting shares of porate reorganization and reflected no expansion Bank. Accordingly, the proposed acquisition of of corporate interests or significant change in the the shares of the successor organization is treated character of the banking facilities involved, con­ herein as the proposed acquisition of the shares summation of the transaction eliminated neither of Bank. existing nor potential competition, nor does it Notice of receipt of the application has been appear that there have been any adverse effects given in accordance with § 3(b) of the Act, and the on any bank in the area.2 time for filing comments and views has expired. The financial and managerial resources and pros­ The Board has considered the application and all pects of Applicant and Bank are regarded as satis­ comments received in the light of the factors set factory and consistent with approval of the applica­ forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and tion in view of Applicant’s commitment to raise finds that: $200,000 in additional equity capital within sixty Applicant controls three banks with total de­ days of approval of this application in order to posits of $811 million, representing 10.4 percent significantly reduce the debt which it incurred in of total commercial deposits in the State. (Bank­ order to purchase shares of Bank. The convenience ing data are as of June 30, 1971.) Acquisition of and needs of the communities involved have been Bank (deposits of $22.6 million) would not sig­ beneficially affected by the acquisition in that, nificantly increase Applicant’s share of total de­ with the aid of Applicant’s affiliate, Brunswick posits in the State. Bank, Bank has instituted a mortgage lending Bank operates four offices in the Kingsport program, modernized certain of its operations, banking market which is approximated by the and secured a successor to its president who in­ western portion of Sullivan County. Bank con­ tends to retire this year. It is the Board’s judgment trols 21.8 per cent of the deposits in the market that the transaction was in the public interest and is the second largest of three banks in that and that the application should be approved. market. Applicant’s subsidiary office closest to On the basis of the record, the application is Bank is located seven miles away and is located in the Jonesboro banking market which is ap­ 2Applicant is affiliated with American National Bank of Brunswick, proximated by Washington County; there is only Brunswick, Georgia (“Brunswick Bank”). However Bank and Bruns­ nominal existing competition between Bank and wick Bank serve different markets, are separated by approximately Applicant’s existing subsidiary. Consummation forty miles and by intervening banks, and are prohibited by restrictive branching laws from establishing branches in each other’s market area. of the proposal would eliminate only a small Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 305 amount of existing competition and would not time for filing comments and views has expired. adversely affect any competing bank in any The Board has considered the application and all relevant area. comments received in the light of the factors set The financial and managerial resources of Ap­ forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and plicant and Bank are generally satisfactory and finds that: consistent with approval in that consummation of Applicant controls 31 banks with aggregate the proposed transaction will enable Applicant to deposits of about $943 million, representing 6.4 strengthen Bank’s capital structure which, in per cent of the commercial bank deposits in turn, will enable Bank to become a more effective Florida and ranking it third in the State. Since competitor. Consummation of this proposal Bank is a proposed new bank no existing com­ would have beneficial effects on the convenience petition would be eliminated, nor would con­ and needs of the communities in that Bank’s ability centration be increased in any relevant areas. to compete for larger industrial and commercial Applicant presently operates four banks in the accounts will be enhanced and de novo branch Orlando area; three of these four are recently expansion by Bank into the Bristol market (which chartered and Applicant’s share of deposits in is located approximately 20 miles east of Kingsport) the Orlando area is 11.4 per cent. Consummation will be facilitated. Considerations related to the of the proposal will not place Applicant in a convenience and needs of the communities to be dominant position in the Orlando area since the served, therefore, lend some weight for approval. largest organization has something over 40 per It is the Board’s judgment that the proposed cent of area deposits, and two other organizations transaction would be in the public interest and are approximately Applicant’s size. Significant bar­ that the application should be approved. riers to entry will not be raised since the popula­ On the basis of the record, the application is ap­ tion per banking office in Bank’s service area will proved for the reasons summarized above. The still be relatively high. For these reasons and other transaction shall not be consummated (a) before facts of record, the Board concludes that con­ the thirtieth calendar day following the date of summation of the transaction will not adversely this Order or (b) later than three months after the affect competition in any relevant area. date of this Order, unless such period is ex­ The financial and managerial resources and fu­ tended for good cause by the Board, or by the ture prospects of Applicant, its subsidiary banks Federal Reserve Bank of St. Louis pursuant and Bank are generally satisfactory and consistent to delegated authority. with approval of the application. Considerations By order of the Board of Governors, February relating to the convenience of the community to 25,1972. be served lend some weight to approval of the application since the service area of Bank appears Voting for this action: Chairman Burns and Governors Rob­ to be relatively underbanked and would benefit ertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and not voting: Governor Maisel. from an additional source of services. The Board finds that the proposed application is in the public (Signed) Tynan Smith, interest and should be approved. [seal] Secretary of the Board. On the basis of the record, the application is approved for the reasons summarized above. The BARNETT BANKS OF FLORIDA, INC., transaction shall not be consummated (a) before JACKSONVILLE, FLORIDA the thirtieth calendar day following the date of this Order or (b) later than three months after Order Approving Acquisition of Bank the date of this Order; and (c) Barnett Bank of Barnett Banks of Florida, Inc., Jacksonville, West Orlando, Orlando, Florida, shall be opened Florida, a bank holding company within the mean­ for business not later than six months after the ing of the Bank Holding Company Act, has ap­ date of this Order. Each of the periods described plied for the Board’s approval under § 3(a)(3) of in (b) and (c) may be extended for good cause by the Act (12 U.S.C. 1842(a)(3)) to acquire 80 per the Board, or by the Federal Reserve Bank of cent or more of the voting shares of Barnett Bank Atlanta pursuant to delegated authority. of West Orlando, Orlando, Florida (“Bank”), a By order of the Board of Governors, February proposed new bank. 25, 1972. Notice of receipt of the application has been given in accordance with § 3(b) of the Act, and the Voting for this action: Chairman Burns and Governors Rob- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 FEDERAL RESERVE BULLETIN □ MARCH 1972 ertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and vertising, participate a substantial amount of not voting: Governor Maisel. loans with the other, and their disaffiliation ap­ (Signed) Tynan Smith, pears unlikely. The proposed holding company [seal] Secretary of the Board. would compete with two bank holding com­ panies in rapidly growing Broward County, and it appears that the formation would not adversely FLORIDA BANCORP, INC., affect other area banks. POMPANO BEACH, FLORIDA The management of Applicant and the banks Order Approving Formation of Bank Holding to be acquired is generally satisfactory. Applicant Company plans to increase the capital of both banks; prospects for the group are favorable and banking Florida Bancorp, Inc., Pompano Beach, Florida, factors are consistent with approval. Convenience has applied for the Board’s approval under § 3(a)(1) and needs aspects of the proposal are consistent of the Bank Holding Company Act (12 U.S.C. with, and lend some weight toward approval. 1842(a)(1)) of formation of a bank holding com­ The holding company form of organization would pany through acquisition of 80 per cent or more increase operating efficiencies with respect to loan of the voting shares of Pompano Beach Bank and participations, trust and financial advisory services, Trust Company (“Pompano Bank”), and Ocean­ purchasing, and the interchanging of personnel. side Bank, both located in Pompano Beach, It is the Board’s judgment that the proposed Florida. transaction would be in the public interest and that Notice of receipt of the application has been the application should be approved. given in accordance with § 3(b) of the Act, and On the basis of the record, the application is the time for filing comments and views has ex­ approved for the reasons summarized above. The pired. The Board has considered the application transaction shall not be consummated (a) before and all comments received in the light of the the thirtieth calendar day following the date of factors set forth in § 3(c) of the Act (12 U.S.C. this Order or (b) later than three months after the 1842(c)) and finds that: date of this Order, unless such period is extended Applicant, an inactive corporation, was formed for good cause by the Board, or by the Federal for the purpose of acquiring Pompano Bank (de­ Reserve Bank of Atlanta pursuant to delegated posits of $38.3 million) and Oceanside Bank authority. (deposits of $9.8 million).1 Applicant, upon con­ By order of the Board of Governors, February summation of the proposal, would control .4 per 25, 1972. cent of aggregate commercial bank deposits in Florida, and would become the State’s 25th Voting for this action: Chairman Burns and Governors Rob­ ertson, Mitchell, Daane, Brimmer, and Sheehan. Absent and largest bank holding company. In the North not voting: Governor Maisel. Broward County-Boca Raton area (the relevant banking market), Applicant would become the (Signed) Tynan Smith, fourth largest of seven competing banking or­ [seal] Secretary of the Board. ganizations, and would control 11.7 per cent of THE JACOBUS COMPANY AND market area deposits. INLAND FINANCIAL CORPORATION, The two banks that would form the holding MILWAUKEE, WISCONSIN company group are located in Pompano Beach. In spite of the overlapping service area of the two Order Approving Acquisition of Bank banks, formation of the holding company would The Jacobus Company (“Jacobus”) and its not eliminate any substantial amount of present majority owned subsidiary Inland Financial Cor­ competition nor would it likely foreclose potential poration (“Inland”), both of Milwaukee, Wis­ competition because of the close affiliation of the consin, bank holding companies within the mean­ two banks. Oceanside Bank was organized in ing of the Bank Holding Company Act, have ap­ 1969 by the stockholders of Pompano Bank; com­ plied for the Board’s approval under § 3(a)(3) of mon stockholders have continuously owned more the Act (12 U.S.C. 1842(a)(3)) to acquire 100 than 51 per cent of the stock of both banks. The per cent (less directors’ qualifying shares) of two banks have a common auditor, share ad­ the voting shares of Heritage Bank-Mayfair, Wauwatosa, Wisconsin (“Bank”). The acquisi­ 1 Banking data are as of June 30, 1971, and reflect holding company tion will be made by Inland and as a result Jacobus formations and acquisitions approved through January 31, 1972. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 307 will indirectly acquire voting shares of the basis. Legislation is pending which is similar to Bank. that included in the original Bank Holding Com­ Notice of receipt of the application has been pany Act, and under the proposed legislation given in accordance with § 3(b) of the Act, and Jacobus could divest itself of Inland on a tax free the time for filing comments and views has ex­ basis. Inland would thereupon become an inde­ pired. The Board has considered the applications pendent multi-bank holding company. Thus, and all comments received in the light of the approval of the application would be in the public factors set forth in § 3(c) of the Act (12 U.S.C. interest by separating nonbanking activities from 1842(c)) and finds that: banking at an earlier time than divestiture is re­ Applicants control one bank with aggregate quired by statute. deposits of approximately $46 million, repre­ Upon consummation of the proposed transac­ senting 0.5 per cent of the commercial bank de­ tion, Jacobus shall divest itself of Inland within posits in Wisconsin. Since Bank was only opened 90 days of the passage of legislation such as re­ on December 13, 1971, its acquisition by Ap­ ferred to above, and, in any event, Applicants plicants would not significantly increase their shall not retain or acquire any nonbank shares or share of deposits in any relevant area. engage in any non-banking activities to a greater Applicants’ only banking subsidiary is located extent or for a longer period than would apply in in the Milwaukee area which includes Wauwatosa. the case of a bank holding company which became However, that subsidiary controls under IV2 per such on the date of such consummation, except cent of deposits in the market and the acquisition to the extent otherwise permitted in any regula­ of Bank will not have any significant adverse ef­ tion of the Board hereafter adopted specifically fects on present or potential competition. Rather, relating to the effect of the acquisition of an addi­ Bank’s acquisition by Applicants could have a tional bank on the status of nonbank shares and procompetitive impact on the Milwaukee area, activities of a one-bank holding company formed since affiliation of Bank with Inland should make prior to 1971, or unless the Board fails to adopt Bank a stronger competitor in an area where there any such regulation before the expiration of two are many subsidiaries of major Wisconsin bank years after the consummation of the proposed holding companies. acquisition. The financial and managerial resources and On the basis of the record, the applications are future prospects of Applicants, its subsidiary approved for the reasons summarized above. The bank, and Bank are generally satisfactory and transaction shall not be consummated (a) before consistent with approval of the application. In the thirtieth calendar day following the date of this connection, Applicants have assured the Board this Order or (b) later than three months after the that the acquisition debt relating to Bank will date of this Order, unless such period is extended shortly be paid off through the proceeds obtained for good cause by the Board, or by the Federal from sale of capital stock. Considerations relat­ Reserve Bank of Chicago pursuant to delegated ing to the convenience of the community to be authority. served lend some weight for approval of the ap­ By order of the Board of Governors, February plications, since Bank proposes to offer some 25, 1972. services which are not widely available in the Voting for this action: Chairman Burns and Governors Rob­ area at the present time. ertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. Jacobus is a bank holding company only through its ownership of Inland. To be able to expand (Signed) Tynan Smith, its activities outside of the field of banking, [seal] Secretary of the Board. Jacobus has filed an irrevocable declaration with the Board pursuant to 12 CFR 225.4(d) that it will MERCANTILE BANCORPORATION INC., cease to be a bank holding company by January ST. LOUIS, MISSOURI 1, 1981. Normally, the Board would not approve Order Approving Acquisition of Bank acquisition of another bank by a company that has filed such a declaration. However, Jacobus has Mercantile Bancorporation Inc., St. Louis, Mis­ committed itself to divest itself of its interest in souri, a bank holding company within the mean­ Inland within 90 days of the passage of any en­ ing of the Bank Holding Company Act, has applied abling legislation permitting distribution of In­ for the Board’s approval under § 3(a)(3) of the land shares to Jacobus shareholders on a tax free Act (12 U.S.C. 1842(a)(3)) to acquire at least 90 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 FEDERAL RESERVE BULLETIN □ MARCH 1972 per cent of the voting shares of Franklin County of participations with Applicant’s subsidiaries, Bank and Trust Company, Washington, Missouri Bank would be better able to increase its lending (“Bank”). in the area of home mortgages and business loans. Notice of receipt of the application has been The addition of services and Bank’s increased given in accordance with § 3(b) of the Act, and the lending capability which would be made possible time for filing comments and views has expired. by consummation of the proposal should benefit The Board has considered the application and all the residents of Bank’s service area. Considera­ comments received in the light of the factors set tions relating to convenience and needs of the forth in § 3(c) of the Act (12 U.S.C. 1842(c)) and area are consistent with and lend some weight finds that: toward approval of the application. It is the Applicant, the largest banking organization and Board’s judgment that consummation of the pro­ largest bank holding company in Missouri on the posed acquisition would be in the public interest, basis of deposits, has six subsidiary banks with and that the application should be approved. aggregate deposits of $1,134 billion, represent­ On the basis of the record, the application is ing 9.9 per cent of total commercial bank deposits approved for the reasons summarized above. The in the State. (All banking data are as of June 30, transaction shall not be consummated (a) before 1971, adjusted to reflect holding company acquisi­ the thirtieth calendar day following the date of tions and formations approved by the Board this Order or (b) later than three months after the through January 31, 1972.) Consummation of the date of this Order, unless such period is ex­ proposal herein would increase Applicant’s share tended for good cause by the Board, or by the of commercial bank deposits in the State to 10.1 Federal Reserve Bank of St. Louis pursuant to per cent. delegated authority. Bank ($18.2 million of deposits) is the second By order of the Board of Governors, February largest of seven banks operating in the Washing­ 29, 1972. ton banking market, which is approximated by the Voting for this action: Chairman Burns and Governors Rob­ northern half of Franklin County and the south­ ertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. east corner of Warren County, and holds about r ^ (Signed) Tynan Smith, 23.5 per cent of the deposits in the market. Al­ LSEALJ Secretary of the Board. though Bank is one of the larger banks in the market, it is not dominant. The first and third STATE NATIONAL BANCSHARES, INC., largest banks in the market hold, respectively, EL PASO, TEXAS 26.4 and 23.3 per cent of deposits. Applicant’s Order Approving Formation of Bank Holding subsidiary closest to bank is located 40 miles Company northeast of Bank, and none of Applicant’s sub­ sidiaries competes with Bank to any significant State National Bancshares, Inc., El Paso, Texas, extent. Furthermore, in light of the facts of record, has applied for the Board’s approval under § 3(a)(1) including the large number of banks in the area, of the Bank Holding Company Act (12 U.S.C. Missouri’s restrictive branching law, and the 1842(a)(1)) of formation of a bank holding com­ unattractiveness of Bank’s service area for de novo pany through acquisition of (1) 100 per cent (less entry, the development of potential competition directors’ qualifying shares) of the voting shares appears unlikely. It appears, therefore, that no of the successor by merger to The State National meaningful existing competition would be elimi­ Bank of El Paso, El Paso, Texas (“State Bank”) nated, nor significant potential competition fore­ and (2) indirect control of 30.07 per cent of the closed, by consummation of Applicant’s proposal, voting shares of Bassett National Bank, El Paso, nor that there would be adverse effects on any 24.99 per cent of the voting shares of Citizens bank in the area involved. State Bank of Ysleta, Ysleta, and 24.27 per cent The financial and managerial resources and fu­ of the voting shares of The First National Bank of ture prospects of Applicant, its subsidiaries, and Fabens, Fabens, all in Texas. The bank into Bank are regarded as satisfactory and consistent which State Bank is to be merged has no signifi­ with approval of the application. The major bank­ cance except as a means of acquiring all of the ing needs of the Washington area are being met by shares of State Bank. Accordingly, the proposed the existing financial institutions. Applicant pro­ acquisition of the successor organization is treated poses, however, to assist Bank in providing trust, herein as the proposed acquisition of the shares bond, and related corporate services. By means of State Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 309 Notice of receipt of the application has been have an adverse effect on competition in any rele­ given in accordance with § 3(b) of the Act, and vant area. the time for filing comments and views has ex­ On the record before the Board, considerations pired. The Board has considered the application relating to the financial and managerial resources and all comments received in the light of the and future prospects of Applicant and of each of factors set forth in § 3(c) of the Act (12 U.S.C. the banks whose shares are to be acquired are 1842(c)) and finds that: generally satisfactory and consistent with approval Applicant is a recently organized corporation of the application. formed for the express purpose of acquiring State Affiliation with Applicant should enable Bassett Bank ($184.1 million in deposits). The Flory Bank, Ysleta Bank, and Fabens Bank to accom­ Company,1 at the present time a wholly-owned modate more easily larger loan requests, especial­ subsidiary of State Bank, owns 30.07 per cent of ly those from large manufacturing firms locating the voting shares of Bassett Bank ($13.7 million in the El Paso area. Considerations relating to the in deposits), 24.99 per cent of Ysleta Bank ($6.3 convenience and needs of the communities to be million in deposits), and 24.27 per cent of the served are consistent with approval. It is the voting shares of Fabens Bank ($5.2 million in de­ Board’s judgment that consummation of the pro­ posits). (All banking data are as of December posed transaction would be in the public interest, 31, 1970.) and that the application should be approved. State Bank, Bassett Bank, Ysleta Bank, and On the basis of the record, the application is Fabens Bank are the second, sixth, tenth, and approved for the reasons summarized above. eleventh largest of 13 banks in the El Paso SMS A The transaction shall not be consummated (a) and control 33.1 per cent, 2.5 per cent, 1.1 per before the thirtieth calendar day following the cent, and .9 per cent, respectively, of area deposits. date of this Order or (b) later than three months Applicant would become the second largest after the date of this Order, unless such period is banking organization in the area2 with 37.6 per extended for good cause by the Board, or by the cent of area deposits. Federal Reserve Bank of Dallas pursuant to dele­ Although all four banks whose shares are to be gated authority. acquired by Applicant are located in the same area, By order of the Board of Governors, February no meaningful existing or potential competition 29,1972. would be eliminated by consummation of the pro­ Voting for this action: Governors Mitchell, Daane, Maisel, posal. State Bank and Bassett Bank have been Brimmer, and Sheehan. Voting against this action: Governor affiliated since 1964 through common ownership Robertson. Absent and not voting: Chairman Burns. (State Bank shareholders presently own 67.4 per (Signed) Tynan Smith, cent of Bassett Bank), and The Flory Company has [seal] Secretary of the Board. owned a substantial amount of stock of Ysleta Bank since 1962 and of Fabens Bank since 1965. Dissenting Statement of Governor Since the proposal is a formalization of an exist­ Robertson ing banking structure and there appears to be I would disapprove the application of State little likelihood of discontinuance of the present National Bancshares, Inc., to form a bank holding relationships, consummation of the proposal should company. Approval of this application, together have little effect on competition in the El Paso with that of Trans Texas Bancorporation, Inc., will area. Moreover, State Bank is located in down­ result in two holding companies controlling eight town El Paso, while the other three banks are out of thirteen banks in the El Paso banking market; suburban or rural banks which service primarily these eight banks will hold 78 per cent of the total their own local areas. Based upon the foregoing commercial bank deposits in the El Paso market. and other facts of record, the Board concludes These applications present hard cases. In both that consummation of the proposal would not instances the smaller banks were formed as satellites of a lead bank in order to follow custom­ 1 As a part of this transaction, The Flory Company will become a direct ers of the lead bank to the suburbs. This clearly subsidiary of Applicant. The Flory Company now holds certain non­ is beneficial in that more convenient banking banking interests, which the Act requires that Applicant will divest itself of within two years, or within such other time as may be prescribed by services are thereby provided to the public. §4 of the Act. Nevertheless, as the Supreme Court has noted, 2This reflects the market position of Trans Texas Bancorporation, “[I]f concentration is already great, the impor­ Inc., whose application to form a bank holding company has been ap­ proved by the Board. tance of preventing even slight increases in con­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 FEDERAL RESERVE BULLETIN □ MARCH 1972 centration and so preserving the possibility Majority shareholders of El Paso Bank organized of eventual deconcentration is correspondingly First Bank in 1948, Northgate Bank in 1959 and great.” United States v. Philadelphia National Border Bank in 1971. El Paso Bank is a full service Bank, 374 U.S. 321, n. 42 (1963). It is this rule bank serving the entire El Paso area, whereas of law which leads me to refrain from approving the other three serve primarily their own par­ such an application. A holding company lends a ticular suburban area. All four banks are in the degree of permanence to the banking structure same market area and absent the common owner­ that is not present when there exists merely com­ ship would be competitors to some extent de­ mon ownership by individuals. Denial of this spite the disparities in their size. application would preserve the possibility of The United States Department of Justice ad­ eventual disaffiliation of the banks and decon­ vised the Board that in its opinion consummation centration of the El Paso area. For these reasons, of the proposal would have a significantly adverse I would deny the application. effect on competition. Its advice was based on its view that the subject banks were in actual com­ TRANS TEXAS BANCORPORATION, INC., petition and that there was some degree of im­ EL PASO, TEXAS permanence in the control relationship. On the basis of the record, the Board concludes Order Approving Formation of Bank Holding that there is no significant existing competition Company between the banks involved. This is due to the Trans Texas Bancorporation, Inc. (“Appli­ fact that two individuals and their business as­ cant”), El Paso, Texas, has applied for the Board sociates control a majority of the voting shares approval under § 3(a)(1) of the Bank Holding of El Paso Bank, 86 per cent of the shares of Company Act (12 U.S.C. 1842(a)(1)) of formation First Bank, 86 per cent of the shares of Northgate of a bank holding company through acquisition Bank, and 75 per cent of the shares of Border Bank. of 80 per cent or more of the voting shares of El The two individuals themselves control over 25 per Paso National Bank (“El Paso Bank”), First cent of the voting shares of each of the three State Bank (“First Bank”), Northgate National smaller banks. Bank of El Paso (“Northgate Bank”), and In view of the close relationship between the Border City Bank (“Border Bank”) all of El Paso, banks over a long period of time, and the lack of Texas. any evidence on the record that dissipation of the Notice of receipt of the application has been common control is likely in the future, the Board given in accordance with § 3(b) of the Act, and concludes that present and potential competition the time for filing comments and views has ex­ would neither be foreclosed by approval of the pired. The Board has considered the application application nor encouraged by its denial. Neither and all comments received in the light of the does it appear that competition with and between factors set forth in § 3(c) of the Act (12 U.S.C. other banks in the area would be affected in any 1842(c)) and finds that: significant way. Applicant is a recently organized corporation Considerations relating to the financial and formed for the express purpose of acquiring managerial resources and future prospects of Ap­ El Paso Bank ($201.4 million in deposits), First plicant and the banks concerned are satisfactory Bank ($18.6 million in deposits), Northgate Bank and consistent with approval. Since the institutions ($14.0 million in deposits) and Border Bank ($1.0 involved are presently under common control it million in deposits). (All banking data are as of is unlikely that consummation of the proposal June 30, 1971.) These banks are respectively will have a significant effect on the banking con­ the 1st, 5th, 6th, and 13th largest of the thirteen venience and needs of the communities to be banks in the El Paso banking market and control, served, although Applicant does propose to expand respectively, 35.5, 3.3, 2.5, and 0.2 per cent of the services offered by the smaller banks. These market deposits. Upon consummation of the pro­ considerations are consistent with but provide posal, Applicant’s 41.5 per cent of deposits would little weight toward approval of the applications. make it the largest banking organization in the It is the Board’s judgment that consummation of market. State National Bancshares, Inc., whose the proposed transaction would be in the public application was approved by the Board today, interest, and that the application should be ap­ would be the second largest organization with 37.6 proved. per cent of area deposits. On the basis of the record, the application is Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 311 approved for the reasons summarized above. The (“FABC”), its wholly-owned subsidiary chartered transaction shall not be consummated (a) before as an “investment company” under Article XII the thirtieth calendar day following the date of this of the New York State Banking Law. It also has Order or (b) later than three months after the date an agency in San Francisco, California. The Board of this Order, unless such period is extended for has previously ruled that FABC is not a “bank” good cause by the Board, or by the Federal Re­ within the meaning of section 2(c) of the Act. serve Bank of Dallas pursuant to delegated French Bank of California proposes to be authority. primarily a wholesale bank specializing in the By order of the Board of Governors, February financing of international trade. Applicant has 29, 1972. one office in San Francisco, but that office is an agency and is not authorized to accept deposits. Voting for this action: Governors Mitchell, Daane, Maisel, The proposed new bank is expected to compete Brimmer, and Sheehan. Voting against this action: Governor Robertson. Absent and not voting: Chairman Burns. Governor principally with other foreign-owned banks and Robertson dissents for the reasons set forth in his dissent in with the international departments of the larger the matter of the application of State National Bancshares, California banks having international banking ca­ Inc., to become a bank holding company, which was approved on this date. pabilities. Based on the record before it, the Board concludes that Bank’s entry into the Cali­ (Signed) Tynan Smith, [seal] Secretary of the Board. fornia market will have no adverse effects on existing or potential competition. Rather, the ad­ dition of Bank will provide increased banking ORDERS UNDER SECTIONS 3 AND 4 OF BANK HOLDING COMPANY ACT facilities and competition. The financial and managerial resources and BANQUE NATION ALE DE PARIS, prospects of Applicant and Bank are regarded as PARIS, FRANCE satisfactory and consistent with approval of the application. Considerations relating to the con­ Order Approving Formation of Bank Holding venience and needs of the community to be served Company lend some weight toward approval, as Bank Banque Nationale de Paris, Paris, France, has would become the first commercial banking sub­ applied for the Board’s approval under § 3(a)(1) sidiary of a European Economic Community of the Bank Holding Company Act (12 U.S.C. member nation in California and could serve as 1842(a)(1)) of formation of a bank holding com­ a channel for additional French investment in pany through acquisition of 100 per cent of the the United States. It is the Board’s judgment that voting shares (less directors’ qualifying shares) the proposed formation would be in the public of French Bank of California, San Francisco, interest and that the application should be ap­ California (“Bank”), a proposed new bank. proved. Notice of receipt of the application has been In connection with the present application, given in accordance with § 3(b) of the Act, and the Applicant also applied for the Board’s permission time for filing comments and views has expired. to retain its ownership of FABC and certain in­ The Board has considered the application and all vestments held indirectly through FABC. Those comments received in the light of the factors set investments include French American Capital forth in § 3(c) of the Act (12 U.S.C. 1842(c)) Corporation, New York City, a wholly-owned and finds that: subsidiary of FABC, and two minority invest­ Applicant, wholly-owned by the French govern­ ments of French American Capital Corporation in ment, is the largest bank in France and the second Locafrance-U.S. Corporation and Indumat Equip­ largest in the European Economic Community. It ment Corporation, each located in New York City. operates over 1,600 branches in France and, di­ These matters were separately considered by the rectly or through subsidiaries, has over 300 ad­ Board under section 4(c)(9) of the Act and are ditional offices located in more than 50 foreign the subject of another order issued today by the countries. Applicant and its subsidiaries control Board. approximately $9.2 billion in deposits.1 Applicant On the basis of the record, the application is engages in banking activities in New York through approved for the reasons summarized above. The French American Banking Corporation transaction shall not be consummated (a) before the thirtieth calendar day following the date of this Order or (b) later than three months after 1 All banking data are as of May 31, 1971. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 FEDERAL RESERVE BULLETIN □ MARCH 1972 the date of this Order; and (c) French Bank of FACC is a corporation organized in 1970 under California, San Francisco, California, shall be the laws of the State of Delaware that specializes opened for business not later than six months in investing funds for its own account. It plans after the date of this Order. Each of the periods to expand its activities to provide investment ad­ described in (b) and (c) may be extended for good visory services and corporate financial services, in­ cause by the Board, or by the Federal Reserve cluding assistance in mergers ’amL acquisitions. Bank of San Francisco pursuant to delegated Most of FACC’s funds have been placed in short­ authority. term investments, including purchase of participa­ By order of the Board of Governors, February tions in FABC’s loans and investment in negotia­ 7, 1972. ble corporate and government notes. FACC has also made venture capital investments and has invested Voting for this action: Chairman Burns and Governors Rob­ in securities listed on an exchange. Among its ven­ ertson, Daane, Brimmer, and Sheehan. Absent and not voting: Governors Mitchell and Maisel. ture capital investments, FACC has acquired more than 5 per cent of the voting shares of two (Signed) Tynan Smith, [seal] Secretary of the Board. United States subsidiaries of French corpora­ tions. It has a 15 per cent interest in Locaf ranee - U.S. Corporation, which is engaged in the business Order Approving Retention of Investment of leasing equipment, and a 15.8 per cent interest in French American Banking Corporation, in Indumat Equipment Corporation, which sells French American Capital Corporation, and leases scaffolding systems. Both such cor­ AND LOCAFRANCE-U.S. CORPORATION AND porations are located in New York City. Disapproving Retention of Investment in Section 4(c)(9) of the Act provides that the pro­ Indumat Equipment Corporation hibitions of section 4 shall not apply to the Banque Nationale de Paris (“BNP”), Paris, investments or activities of foreign bank holding France, has applied for the Board’s approval companies that conduct the greater part of their under section 4(c)(9) of the Bank Holding Com­ business outside the United States, if the Board by pany Act to retain all of the voting shares of regulation or order determines that, under the cir­ French American Banking Corporation cumstances and subject to the conditions set forth (“FABC”), New York City, and of FABC’s in the regulation or order, the exemption would wholly-owned subsidiary, French American Capi­ not be substantially at variance with the purposes tal Corporation (“FACC”), New York City, if of the Act and would be in the public interest. BNP becomes a bank holding company. In § 225.4(g)(2)(iv) of Regulation Y, the Board BNP has received the Board’s permission to has determined that a foreign bank holding com­ become a bank holding company through the pany may, with the Board’s consent, own or con­ acquisition of all of the voting stock (less direc­ trol voting shares of any company principally tors’ qualifying shares) of a proposed new bank in engaged in the United States in financing or San Francisco, California, to be named French facilitating transactions in international or foreign Bank of California. If the proposed acquisition commerce. From the information submitted by the is consummated, BNP will be a foreign bank hold­ Applicant, it appears that the great majority of ing company within the meaning of § 225.4(g) FABC’s business is conducted with, or on behalf (l)(iii) of Regulation Y. of, foreign customers and that FABC is principal­ FABC is an “investment company” chartered ly engaged in international or foreign banking under Article XII of the New York State Banking in competition with other financial institutions in Law. It is engaged in banking activities, includ­ New York City, including branches or agencies ing short- and medium-term lending, acceptances, of foreign banks, the international banking de­ remittance of funds, foreign exchange transactions, partments of New York banks, and Edge Act sub­ and related activities. FABC receives credit sidiaries of other banks. FABC is active in the balances for the account of its customers in con­ domestic market for call loans to brokers, bankers’ nection with transactions that it is legally author­ acceptances, and bankers’ certificates of deposit; ized to perform, but does not accept deposits. however, such business is small in proportion Except for FABC’s investment in the shares of its both to FABC’s total business and to the markets wholly-owned subsidiary FACC, FABC does not for these types of assets in New York City. directly own more than 5 per cent of the shares of In the Board’s judgment, FABC’s activities any company. meet the conditions for exemption set forth in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 313 section 4(c)(9) of the Act and § 225.4(g)(2)(iv) proves the continued indirect ownership by BNP of Regulation Y. In the Board’s judgment, FACC’s of all of FACC’s voting shares, subject to the investment activities as described by Applicant following conditions: are consistent with the purposes of the Act and (a) That FACC limit its corporate financial the public interest, except as noted below and services to the kind of services authorized subject to the condition that FACC not invest in by § 225.4(a)(5) of Regulation Y, more than 5 per cent of the voting shares, or ac­ quire control over the management or policies, of (b) That BNP dispose of its indirect 15 per any issuer except with prior Board approval. cent interest in Indumat Equipment Corpora­ tion within two years from the date as of FACC’s proposed investment advisory services which it becomes a bank holding company. and its investment in Locafrance-U.S. Corpora­ tion are consistent with the scope of activities 3. Pursuant to section 4(c)(9) of the Act and permitted to a domestic bank holding company § 225.4(g)(3) of Regulation Y, the Board ap­ under section 4(c)(8) of the Act and §§ 225.4(a)(5) proves the continued indirect ownership by BNP and (6) of Regulation Y. of 15 per cent of the voting shares of Locafrance- The term “corporate financial services” as used U.S. Corporation, New York City, provided by Applicant to describe a proposed new activity that Locafrance confines its activities to leasing of FACC is not specifically defined in the applica­ of personal property and equipment in accord­ tion. The Board is of the view that FACC should ance with § 225.4(a)(6) of Regulation Y. be permitted to furnish financial services of a kind The foregoing determinations are subject to authorized by § 225.4(a)(5) of Regulation Y. The the Board’s authority to require reports by, and Board has not determined that assistance in make examinations of, holding companies and mergers and acquisitions is included among such their subsidiaries; to require such modification or services. termination of the activities of a holding company FACC’s investment in Indumat Equipment Cor­ or any of its subsidiaries as the Board finds poration is an investment that would not be per­ necessary to assure compliance with the provisions missible to a domestic bank holding company, and purposes of the Act and the Board’s regula­ since Indumat is engaged in the business of selling tions and orders issued thereunder, or to prevent goods in the United States. The Board believes evasion thereof; and to revocation by the Board if that such an investment is inappropriate for a the facts upon which it is based change in any foreign bank holding company, and no sound material respect. reasons have been advanced by Applicant in sup­ By order of the Board of Governors, February port of a contrary conclusion. 7, 1972. Competition in international or foreign bank­ ing in the New York market will be promoted if Voting for this action: Chairman Burns and Governors Rob­ BNP is permitted to retain its investments in ertson, Daane, Brimmer, and Sheehan. Absent and not voting: Governors Mitchell and Maisel. FABC and FACC. FABC is a small competitor in this market, and it is in the public interest that (Signed) Tynan Smith, such competition be preserved to the extent [seal] Secretary of the Board. consistent in other respects with the purposes of the Act. Based upon the foregoing and other considera­ NEWPORT SAVINGS AND LOAN tions reflected in the record, and based upon the ASSOCIATION, NEWPORT, RHODE ISLAND assumption that BNP will become a bank holding Order Approving Formation of Bank Holding company through the acquisition of voting shares Company and Continuation of the Activities of French Bank of California in accordance with of a Thrift Institution its application approved by the Board, the Board has made the following determinations: Newport Savings and Loan Association, New­ 1. Pursuant to section 4(c)(9) of the Act and port, Rhode Island, has applied for the Board’s § 225.4(g)(2)(iv) of Regulation Y, the Board approval under § 3(a)(1) and § 4(c)(8) of the Bank consents to the continued ownership by BNP of Holding Company Act (12 U.S.C. 1842(a)(1) and all of FABC’s voting shares. 1843(a)(8)) to become a bank holding company 2. Pursuant to section 4(c)(9) of the Act and through acquisition of 100 per cent of the voting § 225.4(g)(3) of Regulation Y, the Board ap­ shares of The Island Trust Company, Newport, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 FEDERAL RESERVE BULLETIN □ MARCH 1972 Rhode Island, a proposed new bank, and to Statement continue thereafter to engage in the activities of a Applicant is a federally insured mutual savings thrift institution. and loan association. Such an association has in­ Pursuant to § 3(b) of the Act, the Board gave definite corporate life and is a “company” within written notice of receipt of the application to be­ the meaning of section 2(b) of the Bank Holding come a bank holding company to the Bank Com­ Company Act.1 missioner for the State of Rhode Island and re­ The Federal Home Loan Bank Board, Con­ quested his views and recommendation. The necticut Bankers Association, and the American Commissioner recommended that the application Bankers Association, have urged the Board to be favorably considered. Subsequently, the Direc­ deny Applicant’s proposal to become a bank hold­ tor of the Department of Business Regulation ing company. In addition, representatives of the for the State of Rhode Island (whose jurisdiction Federal Home Loan Bank Board participated in encompasses the office of the Bank Commissioner) the hearing held in connection with the applica­ recommended that the application be approved. tions. Two basic issues were raised by the parties Notice of receipt of the application to become a objecting to Applicant’s proposal. The first is the bank holding company was published in the Fed­ relationship between the present applications and eral Register on June 19, 1971 (36 Federal the Board’s consideration, under section 4(c)(8) Register 11832), providing an opportunity for of the Act, of the permissibility generally of bank interested persons to submit comments and holding company ownership of a stock savings views with respect to the proposed transaction. and loan association. The second issue relates to Several letters of comment objected to Newport the public interest to be served in permitting a Savings and Loan Association becoming a bank mutual association to own a commercial bank. holding company and continuing thereafter to Applicant presently holds $8.9 million in sav­ engage in the activities of a thrift institution. ings accounts, which represents less than 6 per In view of the issues raised, the Board pub­ cent of the deposits and savings in the Newport lished notice of a hearing on the matter (36 Fed­ County market, and is the fifth largest of the nine eral Register 21708). The hearing was held before financial organizations operating in the market. available members of the Board on November 29, The financial institutions competing with Applicant 1971. All persons desiring to give testimony, in the Newport County market include five com­ present evidence or otherwise participate in the mercial banks, two mutual savings banks, and a hearing were permitted to do so. Time for filing credit union, all of which are authorized to offer additional comments and views has expired; all checking account services. The two mutual savings those received and the entire record of the hear­ banks do so through commercial bank subsidiaries, ing have been considered by the Board. and the credit union is able to accept demand de­ On the basis of the record and other relevant posits under a recently enacted State statute that material, the applications are approved for the permits a State chartered credit union with shares reasons set forth in the Board’s Statement of this of over $1 million to accept demand deposits. date: Provided, That the proposed acquisition Applicant is at a distinct competitive disadvan­ shall not be consummated (a) before the thirtieth tage in not being able to offer checking account calendar day following the date of this Order or services to its customers. The economic data (b) later than three months after the date of this submitted indicate that Applicant’s growth has Order; and that (c) The Island Trust Company shall generally lagged behind that of the area’s other be opened for business not later than six months financial institutions because of this inability. after the date of this Order, unless the times The overall effect of this proposal should be to specified in (b) and (c) are extended for good ^he Rhode Island Legislature, in 1970, specifically authorized such cause by the Board, or by the Federal Reserve mutual associations to establish de novo a bank or trust company or to Bank of Boston pursuant to delegated authority. hold a majority of the issued and outstanding stock of a bank or trust By order of the Board of Governors, February company. Each mutual savings bank in Rhode Island owns a commercial bank subsidiary. In 1970 Congress amended the Bank Holding Com­ 17,1972. pany Act to exempt from the Act federally insured mutual savings banks which directly or indirectly own one bank, if such ownership or control Voting for this action: Chairman Burns and Governors Rob­ existed on the date of enactment of the Bank Holding Company Act ertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. Amendments of 1970 and is specifically authorized by applicable State law (§ 2(a)(5)(F)). If Applicant had owned Bank prior to December (Signed) Tynan Smith, 31, 1970, its continued ownership of the Bank would have been permis­ [seal] Secretary of the Board. sible under Federal and State law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 315 promote competition by enabling Applicant to MOUNTAIN BANKS, LTD., offer a full range of banking services similar to COLORADO SPRINGS, COLORADO those offered by its major competitors. The financial condition of Applicant is general­ Order Approving Formation of Bank ly satisfactory, its management is considered Holding Company competent, and its prospects upon consummation Mountain Banks, Ltd., Colorado Springs, of this proposal appear favorable. Bank’s manage­ Colorado, has applied for the Board’s approval ment would be derived from Applicant, and its under § 3(a)(1) of the Bank Holding Company prospects appear favorable. The banking needs of Act (12 U.S.C. 1842(a)(1)) of formation of a the residents of Bank’s proposed service area ap­ bank holding company through acquisition of 51 pear to be adequately served at the present time per cent or more of the voting shares of The Ex­ by existing institutions, and consummation of this change National Bank of Colorado Springs, Colo­ proposal would result in no new services. How­ rado Springs (“Exchange National”); The First ever, Applicant would become an additional National Bank of Pueblo, Pueblo (“First Na­ source of commercial banking services, and this tional”); Cherry Creek National Bank, Denver introduction of another banking alternative should (“Cherry Creek National”); South Denver Na­ benefit the residents of the area. In the Board’s tional Bank, Glendale (“South Denver National”); judgment, the balance of the banking factors the and Park National Bank of Pueblo, Pueblo (“Park Board is required to consider under section 3(c) National”), all in Colorado. of the Act favors approval. Notice of receipt of the application has been In view of the history of close affiliation of given in accordance with § 3(b) of the Act, and mutual thrift institutions and commercial banks in the time for filing comments and views has ex­ Rhode Island, the Board has determined that Ap­ pired. The Board has considered the application plicant’s continuing to engage in the activities and all comments received in the light of the fac­ of a thrift institution after acquisition of shares of tors set forth in § 3(c) of the Act (12 U.S.C. the proposed new bank is an activity so closely 1842(c)) and finds that: related to Rhode Island banking as to be a proper Applicant proposes to acquire Cherry Creek incident thereto. The Board believes that this National ($37.5 million in deposits), the eleventh special Rhode Island situation may and should be largest of 81 banks in the Denver banking market, resolved separately from the question whether and South Denver National ($10.2 million in de­ operation by a bank holding company of a savings posits), the thirty-eighth largest bank in that mar­ and loan association is generally so closely related ket. Cherry Creek National controls 1.4 per cent to banking that it can be a permissible activity and South Denver National controls 0.4 per cent within the meaning of section 4(c)(8) of the Act. of total deposits in commercial banks in the market. Approval of the applications would add a new South Denver National has been affiliated with bank to the competitive environment and permit Cherry Creek National since it was organized in the parent thrift institution to compete more ef­ 1963; the President of Cherry Creek National fectively with other organizations in which a serves also as chairman of the board of South thrift institution is combined with a commercial Denver National, and more than 92 per cent of bank. This should produce benefits to the public of South Denver National’s stock is owned by Cherry greater convenience and increased competition Creek National stockholders controlling 90 per without any significant adverse effects. Accord­ cent of the stock of the latter bank. A change in ingly, the considerations affecting the competi­ this common control in the foreseeable future tive factors under section 3(c) and the balance appears unlikely. Accordingly, consummation of of the public interest factors the Board must con­ the proposal would not appear to eliminate any sider under section 4(c)(8) in permitting a holding meaningful existing or potential competition be­ company to engage in an activity on the basis tween the two banks. that it is closely related to banking both favor Applicant further proposes to acquire control approval. of three other banks now under common control: Conclusion. On the basis of all relevant facts First National ($57.5 million in deposits), Park before it, including the record of the hearing relat­ National ($4.7 million in deposits), and Exchange ing to this matter, the Board concludes that the National ($72.6 million). One individual, through proposed transaction would be in the public interest family holdings of stock and as beneficiary of and that the applications should be approved. family trusts, controls 52 per cent of First Na­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 FEDERAL RESERVE BULLETIN □ MARCH 1972 tional, 63 per cent of Park National, and 55 per The financial and managerial resources and cent of Exchange National. First National, the future prospects of Applicant are dependent on largest bank in the Pueblo banking market, and its proposed bank subsidiaries, all of whose re­ Park National, the seventh largest of nine banks sources and prospects are satisfactory and con­ in that market, control 34.9 per cent and 2.8 per sistent with approval. It is the Board’s judgment cent, respectively, of total deposits in commercial that the transaction is in the public interest and banks in the market. Park National was established that the application should be approved. in 1963 as an affiliate of First National and has In connection with the present application, remained an affiliate since that time. Exchange Applicant has applied to acquire substantially all National controls 18.7 per cent of total commercial of the nonbanking assets of Rocky Mountain bank deposits in the Colorado Springs banking Financial Services, Inc., a one-bank holding com­ market which is located 43 miles south of Pueblo. pany presently owning Park National. This matter In view of the existing relationships between the was separately considered by the Board under banks and in view of the fact that these relation­ § 4(c)(8) of the Act and is the subject of another ships appear unlikely to end in the foreseeable order issued today by the Board. future, it appears that consummation of this pro­ On the basis of the record, the application is posal would not eliminate any meaningful exist­ approved for the reasons summarized above. The ing or potential competition between these three transaction shall not be consummated (a) before banks. the thirtieth calendar day following the date of The two banks in the Denver banking market this Order or (b) later than three months after the are located approximately 65 miles from Exchange date of this Order, unless such period is extended National and 108 miles from First National and for good cause by the Board, or by the Federal Park National. In view of the distances separat­ Reserve Bank of Kansas City pursuant to dele­ ing the Denver area banks and the three other gated authority. banks, the numerous intervening banks, and Colo­ By order of the Board of Governors, February rado’s laws prohibiting branching, there appears 25, 1972. to be no existing competition between the two Voting for this action: Chairman Burns and Governors groups, and such competition appears unlikely Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent to develop. and not voting: Governor Maisel. Consummation of the proposal would create (Signed) Tynan Smith, the State’s seventh largest banking organization [seal] Secretary of the Board. and the sixth largest multibank holding company, controlling 3.9 per cent of the State’s total com­ mercial bank deposits. Applicant should thus be Order Approving Acquisition able to provide more effective competition to the of Nonbanking Companies other holding companies in the three banking Mountain Banks, Ltd., has applied for the markets where its proposed bank subsidiaries are Board’s approval under § 4(c)(8) of the Act (12 located. U.S.C. 1843(c)(8)) to acquire all the shares of Formation of the holding company would permit each of the following companies: Plaza Finance the banks to make larger loans through participa­ Company, Pueblo, Colorado; Valley Industrial tion agreements, would enable more funds to be Bank, Blende, Colorado; Bankers Motor Leas­ channeled into mortgage lending through Exchange ing, Inc., Colorado Springs, Colorado; and National’s mortgage lending department, and Cherokee Life Insurance Company, Phoenix, would coordinate and improve the effectiveness of Arizona. These nonbanking companies, as well the trust activities of First National and Exchange as a bank, are now owned by Rocky Mountain National. The banks should benefit from the sav­ Financial Services, Inc., Colorado Springs, Colo­ ings resulting from more efficient auditing, data rado, a registered bank holding company. Moun­ processing, management selection, training and tain Banks, Ltd., has today received the Board’s succession, and marketing functions. Applicant permission to become a bank holding company also intends to construct new banking houses for through the acquisition of 51 per cent or more Exchange National and Park National. Considera­ of the voting shares of five banks located in tions related to the convenience and needs of the Colorado. communities to be served lend weight toward Notice of the application, affording opportunity approval. for interested persons to submit comments and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 317 views, has been duly published. The time for flict of interests, unsound banking practices, or filing comments and views has expired and all other adverse effects on the public interest. those received have been considered. Consummation of Applicant’s proposed non­ Plaza Finance Company is engaged in the busi­ banking acquisitions would result in greater ef­ ness of a finance company. Valley Industrial Bank ficiency through the use of centralized auditing is engaged in the business of an industrial bank and computer services. Several of the proposed and does not accept demand depsoits. Both Plaza subsidiaries appear to be unable to expand their Finance Company and Valley Industrial Bank activities significantly because they lack access engage in certain insurance agency activities to additional funds from banks or from their present which are directly related to their extensions of parent company, Rocky Mountain Financial Serv­ credit. Bankers Motor Leasing, Inc., engages in ices, Inc., Mountain Banks, Ltd., which has access full payment leasing of automobiles. The opera­ to substantial financial resources, could provide tion by a bank holding company of companies these companies with needed funds, thereby allow­ engaged in the above activities has previously ing the companies to expand their services to the been determined by the Board to be closely public. On balance, the Board concludes that related to banking. 12 CFR 225.4(a)(1), (2), (6), these public benefits outweigh any adverse effects (9), (11). Cherokee Life Insurance Company on competition. formerly engaged in the business of reinsuring On the basis of the foregoing and other con­ credit life and disability insurance but has termi­ siderations reflected in the record, the Board has nated all business activities and Applicant is not determined that the balance of the public interest seeking approval for it to engage in any activities. factors the Board is required to consider under Plaza Finance Company ($2.4 million in assets)1 section 4(c)(8) of the Act is favorable, and the is a consumer finance company doing business in application is hereby approved. This determina­ Pueblo, Colorado Springs, Longmont, and Fort tion is subject to the conditions set forth in section Collins.2 In Pueblo and Colorado Springs (where 225.4(c) of Regulation Y and to the Board’s deter­ Applicant will have bank subsidiaries), Plaza mination of the activities of a holding company Finance is a relatively small competitor, having or any of its subsidiaries as the Board finds neces­ only $0.8 million of loans outstanding in Pueblo, sary to assure compliance with the provisions of and $0.4 million of loans outstanding in Colo­ the Act and the Board’s regulations and orders rado Springs; it appears that, in each city, over 50 issued thereunder, or to prevent evasions thereof. companies make consumer loans. Accordingly, By order of the Board of Governors, February the proposed acquisition of Plaza Finance would 25, 1972. appear to have only very slight adverse effects on competition in the relevant markets. Voting for this action: Chairman Burns and Governor^ Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent Valley Industrial Bank makes consumer loans in and not voting: Governor Maisel. the Pueblo market, where Applicant has two bank (Signed) Tynan Smith, subsidiaries. The industrial bank, however, has [seal] Secretary of the Board. only $1.1 million in outstanding loans in a market where over 50 consumer lenders compete. Ac­ ORDERS UNDER SECTION 4(c)(8) OF cordingly, the proposed acquisition of Valley In­ BANK HOLDING COMPANY ACT dustrial Bank would appear to have only slightly adverse effects on competition in the Pueblo mar­ FIRST TULSA BANCORPORATION, INC., ket. TULSA, OKLAHOMA Bankers Motor Leasing, Inc., which leases Order Denying Acquisition of automobiles in the Colorado Springs area, does Hall Investment Company not compete with any of the proposed subsidiaries of Mountain Banks, Ltd. There is no evidence in First Tulsa Bancorporation, Inc., Tulsa, Okla­ the record indicating that consummation of the pro­ homa, a bank holding company registered under posed transactions would result in any undue con­ the Bank Holding Company Act of 1956, as centration of resources, unfair competition, con­ amended, has applied for the Board’s approval under section 4(c)(8) of the Act and § 225.4(b)(2) 1 Asset data for Plaza Finance Company and for other proposed sub­ of the Board’s Regulation Y to acquire all of the sidiaries are as of December 1970. voting shares of Hall Investment Company (“Com­ 2PJaza Finance also owns First Industrial Loan Company, Greeley, Colorado, with outstanding loans of $0.3 million. pany”), Tulsa, Oklahoma. Notice of the applica­ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 FEDERAL RESERVE BULLETIN □ MARCH 1972 tion affording opportunity for interested persons produce gains in efficiency. The basis for such to submit comments and views, was duly pub­ contention is not clearly evidenced in the record lished (36 Federal Register 21849). Time for but, in any case, the Board concludes that even filing comments and views has expired and none if such public benefits were to result, this would have been received. not outweigh the adverse effects indicated above. The operation of a mortgage company by a bank Based upon the foregoing and other considera­ holding company is an activity that the Board has tions reflected in the record, the Board has con­ determined to be closely related to banking (12 cluded that the public interest factors the Board C.F.R. 225.4(a)(1)). A bank holding company is required to consider under section 4(c)(8) are may acquire a company engaged in this activity not favorable to the requested determination and so long as the proposed acquisition is consistent do not outweigh possible adverse effects. Accord­ with the relevant factors specified in section 4(c)(8) ingly, the application is hereby denied. of the Act. By order of the Board of Governors, February Applicant owns the First National Bank and 7, 1972. Trust Company of Tulsa (“Bank”), the third Voting for this action: Chairman Burns and Governors largest banking organization in Oklahoma. Bank’s Robertson, Maisel, Brimmer, and Sheehan. Absent and not total deposits of $407.7 million (deposit data are voting: Governors Mitchell and Daane. for June, 1971) represent 7.0 per cent of all com­ (Signed) Tynan Smith, mercial bank deposits in the State, and 31.5 per [seal] Secretary of the Board. cent of those within Tulsa County. Within Tulsa County, Bank is engaged in extending credit secured by real property through (1) permanent U.S. BANCORP mortgage loans on one-four family residential PORTLAND, OREGON properties, (2) permanent mortgage loans on in­ come producing properties, and (3) construction Order Approving Retention of loans. Shares of U.S. Datacorp Company, the second largest mortgage com­ U.S. Bancorp, Portland, Oregon, a bank hold­ pany in Tulsa County and the 227th largest mort­ ing company registered under the Bank Holding gage company in the nation, specializes in the Company Act of 1956, as amended, has applied origination and servicing of single-family mortgage for the Board’s approval under section 4(c)(8) loans. As of June 1971, Company had a mortgage of the Act and section 225.4(b)(2) of the Board’s servicing portfolio of $80.2 million. In addition Regulation Y to retain shares of U.S. Datacorp, to its office in Tulsa, Company has recently opened Portland, Oregon. Notice of the application, afford­ an office in Oklahoma City. ing opportunity for interested persons to submit Bank and Company are both engaged in the comments and views, was duly published (36 making of permanent one-four family residential Federal Register 23840). The time for filing com­ mortgages in Tulsa County. In 1970, Bank origi­ ments and views has expired, and none have been nated $4.5 million of such mortgages, and Com­ received. pany originated $7.9 million of such mortgages. The Board has determined that certain types of It is estimated that Bank’s share of the permanent data processing activities are closely related to one-four family residential mortgage market in banking (12 CFR 225.4(a)(8)). A bank holding Tulsa County was 4.3 per cent in 1970, whereas company may own shares of a company engaged Company’s share was 7.5 per cent. Consumma­ in such activities if such ownership is consistent tion of the proposed acquisition would increase with the relevant factors specified in section Applicant’s share of that market to nearly 12 per 4(c)(8) of the Act. cent and would eliminate a significant competitive Applicant’s only banking subsidiary is United alternative in that market. Furthermore, consum­ States National Bank of Oregon (deposits $1.5 mation of the proposed acquisition would fore­ billion), the second largest bank in Oregon, with close the potential development of further com­ control of 37.7 per cent of the total commercial petition between Bank and Company. bank deposits in the State. The data processing Applicant contends that consummation of the operations it formerly conducted were trans­ proposed acquisition would enable it to provide ferred to U.S. Datacorp when that company was additional funds for the development of low and organized by applicant in January 1971 (ap­ moderate income housing in Tulsa and would parently on authority of section 4(c)(5) of the Act). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

LAW DEPARTMENT 319 Those operations were conducted principally in conditions set forth in section 225.4(c) of Regula­ Portland, where the offices of United States Na­ tion Y and to the Board’s authority to require such tional Bank of Oregon were located. Applicant modification or termination of the activities of a expanded the scope and range of U.S. Datacorp’s holding company or any of its subsidiaries as the activities (all of the type described in 12 CFR Board finds necessary to assure compliance with 225.4(a)(8)) by acquiring, immediately after the the provisions and purposes of the Act and the organization of Datacorp, the assets of Data Plan­ Board’s regulations and orders issued thereunder, ning Corporation, Seattle, Washington, a going or to prevent evasion thereof. concern. (Hence, the Board treats the application By order of the Board of Governors, February to retain the shares of U.S. Datacorp as an applica­ 25, 1972. tion also to retain the assets of Data Planning.) Voting for this action: Chairman Burns and Governors At the time of its acquisition by Applicant, Robertson, Mitchell, Daane, Brimmer, and Sheehan. Absent Data Planning was offering data processing services and not voting: Governor Maisel. in the local Seattle market that were, for the most (Signed) Tynan Smith, part, similar to the data processing services [seal] Secretary of the Board. offered by Applicant’s subsidiaries. It was also supplying a computer output microfilm service, ORDER UNDER SECTION 4(d) OF for which the relevant market included both Port­ BANK HOLDING COMPANY ACT land and Seattle. At the time of the acquisition, Applicant com­ MILTON HERSHEY SCHOOL AND SCHOOL peted in the data processing field in Portland with TRUST, HERSHEY, PENNSYLVANIA three bank or bank-related firms and 36 other companies. Data Planning was competing in the Order Approving Exemption Seattle market with 42 banks and 80 other com­ of Nonbanking Activities panies in the data processing field. In view of the of Bank Holding Company relatively small amount of data processing per­ Milton Hershey School and School Trust, formed by Applicant and Data Planning, the large Hershey, Pennsylvania, a bank holding company number of competitors in the market area of each, by virtue of 56 per cent ownership of The Hershey the distance between market areas, and other such National Bank, Hershey, Pennsylvania (“Bank”), considerations, it appears that Applicant and Data has applied to the Board of Governors, pursuant Planning were not significant competitors with to section 4(d) of the Bank Holding Company Act each other at the time of the acquisition, nor that (12 U.S.C. 1843 (d)), for an exemption from the they would become such in the future. Moreover, prohibitions of section 4 (relating to nonbanking it appears likely that U.S. Bancorp, through U.S. activities and acquisitions). Datacorp, will be able to expand the range of Notice of receipt of the application has been services offered to the public. The Board con­ given in accordance with section 4 of the Act, cludes that the acquisition by Applicant of the and the time for filing comments and views has assets of Data Planning did not have significant expired. The Board has considered the application anticompetitive effects; that the continued opera­ and all comments received in the light of the factors tion of U.S. Datacorp by Applicant will not have set forth in section 4(d) of the Act and finds that: significant anticompetitive effects; and that, on Milton Hershey School was established in 1909 balance, the public benefits to be expected by per­ by Milton and Catherine Hershey. In 1930, Milton mitting U.S. Bancorp to retain shares of U.S. Hershey transferred his controlling interest in The Datacorp outweigh any possible adverse effects Hershey National Bank, founded in 1925, to the on competition. Milton Hershey School Trust, with the Hershey On the basis of the foregoing and other con­ School as beneficiary. Upon Milton Hershey’s siderations reflected in the record, the Board has death in 1945, Milton Hershey School and School determined that the balance of the public interest Trust held a controlling interest in Hershey Foods factors the Board is required to consider under Corporation and other nonbanking interests in and section 4(c)(8) is favorable. Accordingly, the ap­ around the town of Hershey, Pennsylvania. Bank plication is approved, and the Applicant is hereby ($40 million in deposits as of June 30, 1971) was permitted to engage in the activities conducted established to provide banking facilities for the by U.S. Datacorp that are authorized by 12 CFR employees of the predecessor to the Hershey 225.4(a)(8). This determination is subject to the Foods Corporation. Over the years, the majority Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

of the bank’s customers have been employees of would result in control by interests not similarly Hershey Foods Corporation. Furthermore, over representative of the Hershey community. 90 per cent of Bank’s loans are to individuals or Exemption under 4(d)(3) is contingent upon a small businesses in the Hershey community or its finding of a bank’s small size in relation to the immediate area. The present ownership ties have holding company’s total interests. The type of hold­ existed for over 40 years, a period of affiliation ing company for which such analysis was en­ within the terms of section 4(d)(1). Bank is well visaged is an operating industrial company. managed and in sound financial condition and Applicant’s assets consist of a portfolio of stock Applicant has not abused its relationship with the investments which are not subject to the type of Bank. There is no reason to believe that permitting analysis contemplated under this provision of the this relationship to continue indefinitely will ad­ Act. versely affect either the Bank or the community The legislative history of section 4(d) indicates of Hershey. that Congress clearly intended Applicant to be one At the present time, over 80 per cent of Bank’s of the companies entitled to an exemption (House stock is owned either by Applicant or residents Report No. 91-1747, 91st Cong., 2d Sess., p. 24 of the Hershey community and its environs. Forced and 116 Cong R e c H. 11790 and S. 20653). sale would probably result in a loss of this kind After a review of the entire record, the Board con­ of local control. Bank has historically maintained cludes that the granting of an exemption pursuant an investment in home, farm, and commercial to § 4(d) of the Act would not be substantially at mortgages of the maximum amount permitted variance with the purposes of the Act. by Federal law, and over 80 per cent of these loans On the basis of the record, the application is were conventional home mortgages. Approxi­ approved for the reasons summarized above; mately 37 per cent of the Bank’s loans are com­ provided, however, that this determination is mercial loans to small businesses in Hershey or subject to revocation by the Board if the facts installment loans on automobiles. Bank also makes upon which it is based change in any material education loans to individual students. With higher respect. rates of return available on other types of invest­ By order of the Board of Governors, February ments, a new owner of Bank would be quite likely 17, 1972. to change its investment policy substantially. Be­ Voting for this action: Chairman Burns and Governors cause of the nature of the Hershey community Robertson, Mitchell, Daane, Maisel, Brimmer, and Sheehan. and the nature of Bank under present ownership, (Signed) Tynan Smith, it is the Board’s view that forced sale of Bank [seal] Secretary of the Board. 320 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements CHANGES IN BOARD STAFF d. CONSOLIDATION OF CEILINGS OF BANK SUBSIDIARIES OF HOLDING COMPANIES. Michael A. Greenspan was appointed an Assistant A bank subsidiary (including a bank, Edge Secretary in the Office of the Secretary, effective Act Corporation, or Agreement Corporation) March 6, 1972. Prior to joining the Board’s staff of a bank holding company may elect to con­ in 1969, he had been associated with private law solidate its ceiling with that of one or more of firms in New York and Washington, D.C. Mr. the holding company’s other bank subsidiaries Greenspan holds a B.A. degree from Cornell only if each bank subsidiary involved in the University and a LL.B. degree from Columbia contemplated consolidation had a ceiling un­ University. der the previous Guidelines. Such election Kenneth A. Kenyon, who had been Deputy should be made known in advance to the re­ Secretary in the Office of the Secretary, retired on spective Federal Reserve Banks. Ceilings February 29, 1972. adopted under the present Guidelines should not be consolidated. Ceilings that were con­ VFCR GUIDELINES AMENDED solidated before March 9, 1972, in con­ The Board of Governors effective March 9, 1972, formity with the Guidelines may remain con­ amended the Voluntary Foreign Credit Restraint solidated. (VFCR) Guidelines to prevent subsidiary banks in a holding company from consolidating a newly STATEMENT ON NONDISCRIMINATORY REAL ESTATE FINANCING: DEFERRED EFFECTIVE DATE acquired lending ceiling with ceilings of other banks in the same holding company. Consolida­ The Board of Governors has deferred from March 1 tion of ceilings, among holding company mem­ until May 1 the effective date of its statement bers, had been permissible if only one of the directing State member banks to give public notice banks in question had a ceiling on November 11, that their real estate financing is nondiscriminatory. 1971, when the Guidelines were last revised. The statement was published in the January Bul­ The modification is intended to safeguard the letin, pp. 80-82. express intention of the Board to make ceilings The new date conforms with the effective date available to banks that wanted to enter, and of regulations issued by the Department of Hous­ actively engage in, the foreign lending field. If ing and Urban Development, which has the primary ceilings designed to allow banks directly to develop responsibility for enforcement of the Civil Rights a foreign lending business become available to Act of 1968. Some provisions of that Act— banks already established in that business, their under which the Board issued its statement—are purpose would be lost, and their use could lead directed at the real estate lending activities of to an unintended expansion of aggregate foreign financial institutions. lending by U.S. banks. The Board also announced that, prior to May 1, Section II-D(3)(d) of the Guidelines announced 1972, it will distribute free of charge to all State November 11, 1971, will henceforth read as fol­ member banks the revised posters and advertising lows: logotypes required by its statement. 321 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

National Sum m ary of Business Conditions Released for publication March 15 Industrial production increased further in Feb­ equipment has changed little on balance since ruary, nonfarm payroll employment rose, and December. Among materials, production increased the unemployment rate declined again. Wholesale in steel and other durable materials as well as prices increased. Commercial bank credit, the textiles and chemicals. money stock, and time and savings deposits rose. Between mid-February and mid-March, EMPLOYMENT yields on short- and intermediate-term U.S. Nonfarm payroll employment rose by 83,000 in Government securities advanced, while long-term February reflecting further gains in trade, services, Government bond rates were about unchanged. and State and local government. Manufacturing Yields on municipal and seasoned corporate employment changed little, but average weekly securities declined moderately. hours of production workers recovered from the January decline increasing 0.4 hour to 40.4 INDUSTRIAL PRODUCTION hours. The unemployment rate in February de­ Industrial production rose by 0.7 per cent in clined further to 5.7 per cent from 5.9 per cent in February from an upward revised January level January reflecting some reduction in joblessness of 108.2. Output gains were widespread in con­ of women and married men. sumer goods, equipment, and materials. The February index at 109.0 per cent of the 1967 RETAIL SALES average was 3 per cent above a year earlier but The value of retail sales was virtually unchanged still 2l/i per cent below the 1969 high. in February from the December-January level and was 6 per cent above February 1971, according to INDUSTRIAL PRODUCTION the advance report. RATIO SCALE. 1967=100 Sales at durable goods stores were down 2 per cent from January, although sales of new domestictype autos in February were up slightly and sales of new foreign-type were up considerably. Sales at nondurable goods stores were up nearly 1 per cent from January. WHOLESALE AND CONSUMER PRICES Wholesale prices, seasonally adjusted, rose 0.7 per cent between January and February. Indus­ trial commodities increased 0.4 per cent reflecting further increases for metals and metal products, textile products, lumber, and plywood as well as F.R. indexes, seasonally adjusted. Latest figures: February. higher prices for machinery and equipment, and Auto assemblies rose 3lh per cent and were at household furniture and appliances. Prices of farm an annual rate of about 8V2 million units. March and food products rose 1.8 per cent, with large production schedules are indicated to be at increases posted for livestock, meats, fresh fruits, about the February rates. Output of household and cotton and wool. appliances, carpeting, and furniture increased Consumer prices rose 0.3 per cent, seasonally further. Production of television sets and non­ adjusted, in January. Food costs fell as a sharp durable consumer goods (clothing and staples) drop in fresh vegetable and egg prices more than was maintained. Production of most business offset rising prices of meats and other foods. New equipment lines advanced while output of defense car prices increased, and rising property taxes, 322 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

utility rates, and public transportation costs $140 million over the 5 weeks ending March 1 pushed the service component up 0.5 per cent. compared with $180 million in January. Excess PRICES reserves declined somewhat while member bank borrowings were about unchanged. SECURITY MARKETS Treasury bill rates rose by about 50 to 75 basis points between mid-February and mid-March. The 3-month issue was bid at around 3.95 per cent in the middle of March, up from about 3.05 per cent a month earlier. Yields on short- and inter­ mediate-term Treasury coupon issues advanced by some 20 to 40 basis points over the same period, while long-term Government bond rates were little changed. Yields on new corporate securities remained steady on balance from mid-February to mid-March Bureau of Labor Statistics. “Farm products and foods’’jis BLS while seasoned security rates declined slightly. “Farm products, and processed foods arid feeds.” Latest Although municipal security yields dropped figures: Consumer, Jan.; Wholesale, Jan. moderately in mid-March, rates were relatively unchanged through most of the period. BANK CREDIT, DEPOSITS, AND RESERVES Common stock prices continued to rise on Commercial bank credit, adjusted for transfers average volume. of loans between banks and their affiliates, increased substantially further in February al­ INTEREST RATES though somewhat less rapidly than in January. Loan growth moderated in February following a sharp rise in January, and bank acquisitions of municipal and Federal agency securities were smaller than in January. Holdings of U.S. Trea­ sury issues increased considerably, however, following a reduction in January. The narrowly-defined money stock increased at an annual rate of 14 per cent in February, or much more rapidly than in other recent months. U.S. Government deposits declined sharply. Growth in total time and savings deposits was somewhat below the pace of the two previous months but con­ tinued rapid, rising at an annual rate of 16 per cent. The inflow of consumer-type time and savings deposits slowed somewhat but sales of large negoti­ Discount rate, range or level for all F.R. Banks. Weekly average market yields for U.S. Govt, bonds maturing in 10 able CD’s increased. years or more and for 90-day Treasury bills. Latest figures: Free reserves of member banks averaged about week ending Mar. 11. 323 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 1 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 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 2 FEDERAL RESERVE BULLETIN □ MARCH 1972 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 Q3 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 93 Foreign exchange rates A 94 Money rates in foreign countries A 95 Arbitrage on Treasury bills A 96 Gold reserves of central banks and governments A 97 Gold production TABLES PUBLISHED PERIODICALLY (see above for flow of funds): Banking and monetary statistics, 1971: A 98 Member bank reserves, Federal Reserve Bank credit, and related items A 100 Reserves and borrowings of member banks A 102 Assets and liabilities of large commercial banks A 107 “Term” commercial and industrial loans of large com­ mercial banks A 107 Commercial and industrial loans of large commercial banks A 110 Loans sold outright by commercial banks A 120 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS e Estimated N.S.A. Monthly (or quarterly) figures not adjusted c Corrected for seasonal variation IPC Individuals, partnerships, and corporations p Preliminary SMSA Standard metropolitan statistical area r Revised A Assets rp Revised preliminary L Liabilities I, II, S Sources of funds III, IV Quarters U Uses of funds * Amounts insignificant in terms of the par­ n.e.c. Not elsewhere classified ticular unit (e.g., less than 500,000 when A.R. Annual rate the unit is millions) S.A. Monthly (or quarterly) figures adjusted for __ (1) Zero, (2) no figure to be expected, or seasonal variation (3) figure delayed GENERAL INFORMATION Minus signs are used to indicate (1) a decrease, (2) a also include not fully guaranteed issues) as well as direct negative figure, or (3) an outflow. obligations of the Treasury. “State and local govt.” also A heavy vertical rule is used in the following in­ includes municipalities, special districts, and other politi­ stances: (1) to the right (to the left) of a total when the cal subdivisions. components shown to the right (left) of it add to that In some of the tables details do not add to totals because total (totals separated by ordinary rules include more of rounding. components than those shown), (2) to the right (to the The footnotes labeled Note (which always appear left) of items that are not part of a balance sheet, (3) to the last) provide (1) the source or sources of data that do left of memorandum items. not originate in the System; (2) notice when figures are “U.S. Govt, securities” may include guaranteed estimates; and (3) information on other characteristics issues of U.S. Govt, agencies (the flow of funds figures of the data. TABLES PUBLISHED QUARTERLY, SEMIANNUALLY, OR ANNUALLY, WITH LATEST BULLETIN REFERENCE Quarterly Issue Annually—Continued Issue Flow of funds.................................... Mar. 1972 A-72—A-73.9 Banks and branches, number, by class and State................ Apr. 1971 A-94—A-95 Semiannually Flow of funds: Banking offices: Assets and liabilities: Analysis of changes in number....... Feb. 1972 A-98 1959-70 ...................................... Mar. 1971 A-71.10—A-71.21 On, and not on, Federal Reserve 1970 data (revised)....................... June 1971 A-71.2—A-71.3 Par List, number......................... Feb. 1972 A-99 Flows: 1966-70 ..................................... Mar. 1971 A-70—A-71.9 1970 selected data (revised)........ June 1971 A-70—A-71.1 Annually Income and expenses: Bank holding companies: List of, Dec. 31, 1970..................... June 1971 A-110 Federal Reserve Banks......................Feb. 1972 A-96—A-97 Banking offices and deposits of Insured commercial banks.................June 1971 A-94—A-95 group banks, Dec. 31,1970........ Aug. 1971 A-98 Member banks: Calendar year...............................June 1971 A-94—A-103 Banking and monetary statistics: Income ratios.................................June 1971 A-104—A-109 Operating ratios.............................July 1971 A-100—A-105 1971 ..................................... Feb. 1972 A-100—A-101 Mar. 1972 A-98—A-110 Stock market credit. Feb. 1972 A-102—A-103 Statistical Releases LIST PUBLISHED SEMIANNUALLY, WITH LATEST BULLETIN REFERENCE Issue Page Anticipated schedule of release dates for individual releases................................................................................................................. Dec. 1971 A-103 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 4 BANK RESERVES AND RELATED ITEMS □ MARCH 1972 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (In millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding T reas- Period or date U.S. Govt, securities 1 Special ury u H n e d l e d r Loans t Float 2 O F t . h R e . r s G to o c ld k c D e R r r t a i i g w fi h c i t n a s t g e re o c n u u c r t y ­ ­ Bought repur­ assets 3 account stand­ Total out­ chase ing right agree­ ment Averages of daily figures 1939—Dec.. 2,510 2,510 83 2,612 17,518 2,956 1941—Dec.. 2,219 2,219 5 170 2,404 22,759 3,239 1945—Dec.. 23,708 23,708 381 652 24,744 20,047 4,322 1950—Dec.. 20,345 20,336 142 1,117 21,606 22,879 4,629 1960—Dec.. 27,248 27,170 78 94 1,665 29,060 17,954 5,396 1965—Dec.. 40,885 40,772 113 490 2,349 43,853 13,799 5,565 1967—Dec.. 48,891 48,810 81 238 2,030 51,268 12,436 6,777 1968—Dec.. 52,529 52,454 75 765 3,251 56,610 10.367 6,810 1969—Dec.. 57,500 57,295 205 1,086 3.235 2,204 64,100 10.367 6,841 1970—Dec.. 61,688 61,310 378 321 3,570 1,032 66,708 11,105 400 7,145 1971—Feb.. 62,350 62,051 299 328 2.974 1,065 66,797 10.732 400 7,188 Mar.. 62,719 62,381 338 319 2,671 896 66,691 10.732 400 7,235 Apr.. 63,371 63,153 218 148 3,047 1,103 67,747 10.732 400 7,291 May. 64,714 64,368 346 330 2,704 1,076 68,926 10,448 400 7,357 June. 64,642 64,574 68 453 2,690 979 68,834 10.332 400 7,419 July.. 66,001 65,652 349 820 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.. 67,106 66,794 312 501 2.974 900 71,568 10.132 400 7,523 Oct... 67,690 67,488 202 360 3,122 1,105 72,349 10.132 400 7,545 Nov.. 68,052 67,655 397 407 3,129 1 ,013 72,694 10.132 400 7,573 Dec.. 69,158 68,868 290 107 3,905 982 74,255 10.132 400 7.611 1972—Jan.... 70,687 70,300 387 20 3.405 1,177 75,415 10.132 400 7.656 Feb.*. 69,966 69.862 104 34 2.991 957 74,027 9.851 400 7.795 Week ending- 1971—Dec. 1. 68,970 68,481 489 705 3,027 859 73,669 10.132 400 7,586 8. 68,941 68,822 119 59 3,090 893 73,047 10.132 400 7,594 15. 68,761 68,761 25 3,473 927 73,245 10.132 400 7,602 22. 68,958 68,863 95 141 4,444 988 74,621 10.132 400 7,615 29. 69,514 68,938 576 216 4,644 1,096 75,627 10.132 400 7.634 1972—Jan. 70,658 69,517 1,141 57 4,260 1,078 76,258 10.132 400 7,626 70,712 70,211 501 17 3,594 1,125 75,592 10.132 400 7.634 71,130 70.560 570 14 3,353 1,181 75,833 10.132 400 7,649 70,561 70.561 12 3,024 1,228 74,902 10.132 400 7,658 Feb. 2.. 70,364 70,364 16 2,791 1,279 74,526 10.132 400 7,712 9.. 70,002 70,002 42 2,759 1,307 74,180 10.132 400 7,771 16.. 70,692 70,261 431 18 2,693 1,150 74,667 9,977 400 7,793 23*\ 70,326 70,326 16 3,055 574 74,037 9,588 400 7,811 End of month 1971—Dec................... 70,804 6 69,481 1,323 39 4,343 1,068 76,515 10.132 400 7,627 1972—Jan.... 70,202 6 70,202 1,884 1,280 73,456 10.132 400 7,759 Feb.P. 68,425 6-7 68,425 2,725 656 71,875 9,588 400 7,820 Wednesday 1971—Dec. 1. 68,427 6-7 68,427 66 2,692 962 72,203 10.132 400 7,603 8. 69,194 6 68,882 312 86 3,053 929 73,344 10.132 400 7,592 15. 68,032 6-768,032 28 3,844 983 72,953 10.132 400 7,614 22. 68,652 6 68,640 12 828 4,059 1,018 74,635 10.132 400 7,622 29. 71,759 6 69,059 2,700 ,340 4,043 1,114 78,519 10.132 400 7,619 1972—Jan. 70,275 6 69,689 586 44 4,254 1,099 75,791 10.132 400 7,627 70,518 6 70,361 157 17 3,103 1,179 74,951 10.132 400 7,644 71,451 6 70,561 890 24 3,156 1,223 75,995 10.132 400 7,653 70,561 6 70,561 18 2,843 1,261 74,760 10.132 400 7,673 Feb. 2». 70,195 6 70,195 25 2,689 1,311 74,293 10.132 400 7,765 9 p. . 69,995 6 69,995 175 2,510 1,357 74,105 10.132 400 7,788 16*. 71,928 6 70,623 1,305 29 2,930 611 75,641 9.588 400 7,802 23*. 69,619 6 69,619 18 2,591 641 72,932 9.588 400 7,813 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BANK RESERVES AND RELATED ITEMS A 5 RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS— Continued (In millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank reserves, Other reserves Period or date with F.R. Banks Other F.R. F.R. lia­ ac­ bilities Treas­ For­ counts3 ca a p n it d al3 With r C en u c r y ­ ury eign F.R. and Total Banks coins Averages of daily figures 7, 616 739 248 11,473 11,473 .......................1939-Dec. io; 592 1,531 292 12,812 12,812 .......................1941—Dec. 28; 625 1,247 493 16,027 16,027 .......................1945—Dec. 27 615 920 353 739 17,391 17,391 .......................1950—Dec. 33, 522 250 495 1,029 16,688 2,595 19,283 .......................1960—Dec. 42, 683 154 231 389 18,747 3,972 22,719 .......................1965—Dec. 47, 902 150 451 -204 20,753 4,507 25,260 .......................1967—Dec. 50, 360 225 458 -1,105 22,484 4,737 27,221 .......................1968—Dec. 53, 1,194 146 458 2,192 23,071 4,960 28,031 .......................1969—Dec. 57, 849 145 735 2,265 23,925 5,340 29,265 .......................1970—Dec. 55 1,025 153 778 2,232 24,710 5,170 29,880 .......................1971—Feb. 56 783 139 718 2.227 24,601 5,085 29,686 ...................................Mar. 56 1,047 148 752 2,194 24,814 5,071 29,885 ...................................Apr. 57; 1,112 173 690 2,244 25,251 5,168 30,419 ...................................May 57, 652 155 698 2.227 24,793 5,230 30,023 ...................................June 58! 1,546 161 714 2,251 25,231 5,316 30,547 ...................................July 58, 1,121 181 712 2,298 25,098 5,357 30,455 ...................................Aug. 59; 1,621 151 712 2,296 25,365 5,437 30,802 ...................................Sept. 59 2,100 152 736 2,327 25,463 5,397 30,860 ....................................Oct. 59; 1 ,723 133 714 2,320 25,500 5,453 30.953 ...................................Nov. 6i; 1 ,926 290 728 2,287 25,653 5,676 31,329 ...................................Dec. 60 2,821 181 750 2,208 26,955 5,910 32,865 ........................1972—Jan. 59 2,421 172 683 2,273 26,407 5,546 31.953 ....................................Feb.?’ Week ending— 60, 1.894 169 732 2,328 25.783 5,492 31,275 .................1971—Dec. 1 60. 1,749 133 717 2,398 25,151 5,592 30,743 .........................................8 61 j 1,563 143 710 2,219 25,246 5,907 31 ,153 ......................................15 61, 1.895 426 736 2,234 25,785 5,366 31 ,151 .......................................22 61, 2,336 471 708 2,301 26,081 5,843 31,924 .......................................29 61, 2,548 298 862 2,152 27,068 5,746 32,814 .................1972—Jan. 5 60 i 2,760 171 727 2,155 26.784 6,009 32,793 .......................................12 60; 2,515 148 737 2,210 27.694 5,971 33,665 .......................................19 59; 3,084 160 724 2,259 26.695 5,897 32,592 .......................................26 59, 3,053 166 755 2,318 26,576 5,859 32,435 ............................Feb. 2 59; 3,072 156 764 2,382 26,030 5,862 31,892 ....................................... 9 59; 2,915 142 733 2,209 26,593 5,664 32,257 .......................................16 59; 2,015 167 592 2,216 26,739 5,132 31,871 .......................................23* End of month 60, 2,020 294 999 2,131 27,788 5,743 33,531 ......................1971—Dec. 59. 2,860 147 814 2,344 25,650 5,860 31,510 .......................1972—Jan. 59; 884 137 677 2,294 25,535 5,419 30,954 ...................................Feb.? Wednesday 60, 2,567 128 717 2,353 23,536 5,490 29,026 ...............1971-Dec. 1 61, 936 187 779 2,429 25,670 5,591 31,261 ...................................... 8 61, 2,127 173 709 2.198 24,159 5,908 30,067 ......................................15 61, 2,031 473 725 2,250 25,238 5,366 30,604 .......................................22 61, 1,955 281 754 2,362 29,367 5,844 35,211 .....................................29 60, 3,071 302 729 2,108 26,279 5,743 32,022 ...............1972—Jan. 5 60; 2,108 146 707 2,173 26,858 6,016 32,874 .....................................12 60; 2,491 127 778 2,234 27,992 5,974 33,966 .....................................19 59; 2,862 146 716 2,279 26,848 5,895 32,743 .....................................26 59, 3,173 172 779 2,351 26,056 5,861 31,917 ...........................Feb. 2p 59; 2,781 145 739 2,405 26,003 5,869 31,872 ..................................... 9P 59; 2,531 145 612 2.198 27,723 5,671 33,394 .....................................16* 59; 1,139 178 590 2,236 26,312 5,132 31,444 .....................................23" tl :o as Discounts and advances. on Wed. and end-of-month dates, see tables on F.R. Banks on following 1 I jency issues held under repurchase agreements as pages. See also note 2. f D< eral Agency issues bought outright as of Sept. 29, 5 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed m. thereafter. Beginning with Jan. 1963, figures are estimated except for *i >0 reflects a minor change in concept; see Feb. weekly averages. Beginning Sept. 12, 1968, amount is based on close- 961 of-business figures for reserve period 2 weeks previous to report date. a I ', 1969, “Other F.R. assets” and “Other F.R. 6 Includes securities loaned—fully secured by U.S. Govt, securities abi ” are shown separately; formerly, they were pledged with F.R. Banks. ettc sported as “Other F.R. accounts.” 7 Reflects securities sold, and scheduled to be bought back, under 41 loans and acceptances, until Aug. 21, 1959, when matched sale/purchase transactions. 1 was discontinued. For holdings of acceptances Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 6 BANK RESERVES AND RELATED ITEMS □ MARCH 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t l a d l qu R ir e e ­ d ] r F i o n a . w R g t s ­ . s F e r r r e v e ­ e e s T h o e t l a d l qu R ir e e ­ d 1 Excess r F i o n a . w g R t s . ­ se F r r r v e e e ­ e s T h o e t l a d l qu R ir e e ­ d 1 Excess r F i o n . a R w g t s . ­ s F e r r r e v e e ­ e s Banks Banks Banks 1939—Dec............ 11,473 6,462 5,011 3 5,008 5.623 3,012 2,611 2,611 1,141 601 540 540 1941—Dec........... 12,812 9,422 3,390 5 3,385 5,142 4,153 989 989 1,143 848 295 295 1945—Dec........... 16,027 14,536 1,491 334 1,157 4,11“ 4,070 48 192 -144 939 924 14 14 1950—Dec........... 17,391 16,364 1,027 142 885 4,742 4,616 125 58 67 1,199 1,191 8 5 3 I960—Dec........... 19,283 18,527 756 87 669 3,687 3,658 29 19 10 958 953 4 8 -4 1965—Dec........... 22,719 22,267 452 454 -2 4,301 4,260 41 111 -70 1,143 1,128 15 23 -8 1967—De c 25,260 24,915 345 238 107 5,052 5,034 18 40 -22 1,225 1,217 8 13 -5 1968—De c 27,221 26,766 455 765 -310 5,157 5.057 100 230 -130 1,199 1,184 15 85 -70 1969—De c 28,031 27,774 257 ,086 -829 5,441 5,385 56 259 -203 1 ,285 1,267 18 27 -9 1970—De c 29,265 28,993 272 321 -49 5.623 5,589 34 25 9 1,329 1,322 7 4 3 1971—Fe b 29,880 29,679 201 328 -127 5,854 5,810 44 29 15 1,403 1,380 23 4 19 Mar........... 29,686 29,487 199 319 -120 5,664 5,703 -39 51 -90 1,375 1,384 -9 16 -25 Apr............ 29,885 29,745 140 148 -8 5,690 5,696 -6 15 -21 1,392 1,385 7 4 3 May.......... 30,419 30,107 312 330 -18 5,837 5,791 46 113 -67 1,436 1,421 15 13 2 June.......... 30,023 29,892 131 453 -322 5,637 5.674 -37 90 -127 1,387 1,405 -18 21 -39 July........... 30,547 30,385 162 820 -658 5,729 5,754 -25 86 -111 1,407 1,408 -1 28 -29 Aug........... 30,455 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 7 7 Sept........... 30,802 30,596 206 501 -295 5,683 5.674 9 38 -29 1,417 1,423 -6 4 '“ -io Oct............ 30,860 30,653 207 360 -153 5,678 5,667 11 67 -56 1,425 1,408 17 15 2 Nov........... 30.953 30,690 263 407 -144 5,644 5,608 36 107 -71 1 ,408 1 ,400 8 22 -14 Dec............ 31,329 31,164 165 107 58 5,774 5,749 25 35 10 1,426 1 ,425 1 8 -7 1972—Ja...............n 32,865 32,692 173 20 153 6,066 6.058 8 1,503 1,512 -9 -9 Feb.P........ 31.953 31,790 163 34 129 5,804 5,803 -5 1,437 1,442 -5 -5 Week ending— 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 18 -39 24.. . 29,916 29.599 317 250 67 5,770 5,732 38 38 1,417 1,386 31 31 July 7... 30,313 30,036 277 661 -384 5,689 5,663 26 34 -8 1,388 1,374 14 14 14... 30,254 30,249 5 991 -986 5.747 5,814 -67 252 -319 1,390 1,412 -22 -22 21... 30,932 30.650 282 1,121 -839 5,911 5,856 55 65 -10 1,464 1,451 13 116 -103 28... 30,623 30.556 67 545 -478 5.671 5,718 -47 30 -77 1,383 1,384 -1 7 -8 Aug. 4... 30,894 30,460 434 764 -330 5,781 5,677 104 43 61 1,447 1,434 13 13 11... 30,330 30,303 27 593 -566 5,625 5,699 -74 -74 1,419 1,431 -12 -12 18... 30,605 30,381 224 1,179 -955 5,816 5,748 68 '342 -274 1,416 1,412 4 31 -27 25... 30,111 30,020 91 771 -680 5,456 5,522 -66 267 -333 1,387 1,383 4 4 Sept. 1... 30,519 30,195 324 706 -382 5,679 5,561 118 116 2 1,398 1,399 -1 1 -2 8. . . 30,855 30.650 205 765 -560 5,719 5,759 -40 -40 1,428 1,423 5 4 1 15... 30,851 30,604 247 457 -210 5,762 5,690 72 72 1,441 1,448 -7 3 -10 22.. . 30,360 30,421 -61 329 -390 5,469 5,578 -109 86 -195 1,410 1,413 -3 9 -12 29.. . 31,073 30,730 343 424 -81 5,825 5,689 136 36 100 1,410 1,412 -2 -2 Oct. 6... 30,993 30,779 214 309 -95 5,644 5,671 -27 29 -56 1,441 1,422 19 19 13.. . 30,702 30,653 49 449 -400 5,668 5,693 -25 100 -125 1,413 1,432 -19 7 -26 20. . . 31,071 30,861 210 332 -122 5,808 5,818 -10 35 -45 1,429 1,421 8 4 4 27. .. 30,424 30,373 51 413 -362 5,513 5,508 5 133 -128 1,353 1,364 -11 54 -65 Nov. 3.. . 30,961 30,565 396 216 180 5,681 5,626 55 55 1,435 1,400 35 35 10... 30,580 30,570 10 122 -112 5.589 5,597 -8 21 -29 1,376 1,406 -30 -30 17... 31,172 30,984 188 287 -99 5,705 5,761 -56 64 -120 1,447 1,433 14 14 24.. . 30,716 30,572 144 538 -394 5.589 5,520 69 150 -81 1,358 1,374 -16 47 -63 Dec. 1.. 31,275 30,685 590 705 -115 5,701 5,538 163 222 -59 1,438 1,386 52 47 5 8... 30,743 30.600 143 59 84 5.671 5,604 67 67 1,356 1,366 -10 -10 15... 31,153 30,949 204 25 179 5,699 5,757 -58 -58 1,479 1,451 28 28 22.. 31,151 31,180 -29 141 -170 5.747 5,764 -17 -96 1,371 1,414 -43 14 -57 29.. 31,924 31,610 314 216 98 5,793 5,799 -6 -82 1 ,511 1,445 66 21 45 1972—Jan. 5.. 32,814 32,502 312 57 255 6,200 6,120 80 80 1,520 1,526 -6 -6 12.. 32,793 32,688 105 17 88 6,055 6,141 -86 -86 1 ,569 1,549 20 20 19.. 33,665 33,447 218 14 204 6,369 6,267 102 102 1,526 1,563 -37 -37 26.. 32,592 32,400 192 12 180 5,766 5,848 -82 -82 1,475 1,459 16 16 Feb. 2.. 32,435 32,190 245 229 5,936 5,880 56 56 1,460 1,451 9 9 9.. 31,892 31,842 50 8 5,733 5,825 -92 22 -114 1,439 1,445 -6 -6 16.. 32,257 31,946 311 293 6,078 5,895 183 183 1,450 1,466 -16 -16 23*. 31,871 31,693 178 162 5.686 5,789 -103 -103 1,455 1,427 28 28 1 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BANK RESERVES AND RELATED ITEMS A 7 RESERVES AND BORROWINGS OF MEMBER BANKS— Continued (In millions of dollars) Other reserve city banks Country banks Reserves Borrow­ Borrow­ Period ings at Free ings at Free F.R. reserves F.R. reserves T h o e t l a d l Required Excess Banks T h o e t l a d l Required: Excess Banks 3,140 1,953 1,188 1,188 1,568 897 671 3 668 . ...1939—Dec. 4,317 3,014 1,303 1 1,302 2,210 1,406 804 4 800 ....1941—Dec. 6,394 5,976 418 96 322 4,576 3,566 1,011 46 965 ....1945—Dec. 6,689 6,458 232 50 182 4,761 4,099 663 29 634 , ...1950—Dec. 7,950 7,851 100 20 6,689 6,066 623 40 583 , ...I960—Dec. 9,056 8,989 67 228 -161 8,219 7,889 330 92 238 . ...1965—Dec. 10,081 10,031 50 105 -55 8,901 8,634 267 80 187 ... .1967—Dec. 10,990 10,900 90 270 -180 9,875 9,625 250 180 70 ,. ..1968—Dec. 10,970 10,964 6 479 -473 10,335 10,158 177 321 -144 .. ..1969—Dec. 11,548 11,506 42 264 -222 10,765 10,576 189 28 161 ....1970—Dec. 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 ....1971—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 .................Apr. 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 ..................July 11,871 11,883 -12 425 -437 11,474 11,324 150 208 -58 ................Aug. 12,115 12,077 38 318 -280 11,587 11,422 165 141 24 ...............Sept. 12,069 12,050 19 163 -144 11,688 11,528 160 115 45 .................Oct. 12,106 12,041 65 177 -112 11,795 11,641 154 101 53 ...............Nov. 12,198 12,233 -35 22 -57 11,931 11 ,757 174 42 132 .................Dec. 12,954 12,941 13 13 12,342 12,181 161 20 141 . . ..1972—Jan. 12,122 11,975 147 130 12,590 12,569 21 12 9 ................. Feb.* Week ending— 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 .....................24 11,847 11,801 46 372 -326 11,389 11,198 191 255 -64 ..........July 7 11,786 11,876 -90 498 -588 11,331 11,147 184 241 -57 .....................14 12,089 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 .....................28 12,094 11.973 121 429 -308 11,572 11,376 196 292 -96 ...........Aug. 4 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 ...........Sept. 1 12,182 12.138 44 588 -544 11,526 11,330 196 173 23 ...................... 8 12,140 12.098 42 324 -282 11.508 11,368 140 130 10 .....................15 11,937 12,013 -76 146 -222 11,544 11,417 127 88 39 .....................22 12,135 12,080 55 231 -176 11,703 11,549 154 157 -3 .....................29 12,165 12,117 48 118 -70 11,743 11,569 174 162 12 ............Oct. 6 12,011 12,092 -81 234 -315 11,610 11,436 174 108 66 .....................13 12,183 12,110 73 194 -121 11,651 11,512 139 99 40 .....................20 11,876 11,933 -57 129 -186 11,682 11,568 114 97 17 .....................27 12,073 11,976 97 105 11,772 11,563 209 111 98 ..........Nov. 3 11.967 12,050 -83 47 -130 11,648 11,517 131 54 77 .....................10 12,172 12.139 33 174 -141 11,848 11,651 197 49 148 .....................17 11.967 11.973 -6 201 -207 11,802 11,705 97 140 -43 .....................24 12,181 12,025 156 282 -126 11,955 11,736 219 154 65 ..........Dec. 1 11.932 11,992 -60 15 -75 11,784 11,638 146 44 102 ..................... 8 12,156 12.099 57 57 11,819 11,642 177 25 152 ......................15 12,180 12,254 -74 24 -98 11,853 11,748 105 24 81 .....................22 12,521 12,453 68 58 10 12,099 11,913 186 61 125 .....................29 12,871 12,819 52 52 12,223 12,037 186 57 129 1972—Jan......5 12,898 12,927 -29 -29 12,271 12,071 200 17 183 .....................12 13,309 13,327 -18 -18 12,461 12,290 171 14 157 ...................19 12.932 12,837 95 95 12,419 12,256 163 12 151 .....................26 12,686 12,688 -2 -2 12,353 12,171 182 16 166 ..........Feb. 2 12,577 12,567 10 10 12,143 12,005 138 20 118 ..................... 9 12,602 12,636 -34 -35 12,127 11,949 178 17 161 .....................16 12,641 12,529 112 112 12,089 11,948 141 16 125 .....................23* i Beginning Sept. 12, 1968, amount is based on close-of-business fig­ Total reserves held: Based on figures at close of business through Nov. ures for reserve period 2 weeks previous to report date. 1959; thereafter on closing figures for balances with F.R. Banks and open­ ing figures for allowable cash; see also note 3 to preceding table. Note.—Averages of daily figures. Monthly data are averages of daily Required reserves: Based on deposits as of opening of business each day. figures within the calendar month; they are not averages of the 4 or 5 Borrowings at F.R. Banks: Based on closing figures. weeks ending on Wed. that fall within the month. Beginning with Jan. 1964, reserves are estimated except for weekly averages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 8 MAJOR RESERVE CITY BANKS □ MARCH 1972 BASIC RESERVE POSITION, AND FEDERAL FUNDS AND RELATED TRANSACTIONS (In millions of dollars, except as noted) Related transactions with Basic reserve position Interbank Federal funds transactions U.S. Govt, securities dealers s— Net- Gross transactions Net transactions Reporting banks and Total Bor­ week ending— s E e x r r v c e e e ­ s s s 1 r a o B t B w a F o n in . r k R ­ g s . s F t f i b e r n u N d a a n t n n e e e d r t s r k s a ­ . l S d u e r o f p i r c lu it s r P r e e e q a s r e u o v c r i g f v r e . e n e d s t c P ha u s r e ­ s Sales t a w c tr o t a i - o n w n s a ­ s y 2 b c o b P u h a f y a u n n s i r k n e e ­ s g s t s o b S e a f l a n l l n i e k n e s g s t d L ea o t l a o e n r s s3 de f r i a r o n o l w g e m s r ­ s4 lo N a e n t s Total—46 banks 1972—Jan. 5........ 154 6,567 -6,413 46.1 11 ,770 5,203 4,451 7,319 752 2,024 477 1,547 12........ 38 7,967 -7,929 56.5 12,965 4,998 4,739 8,226 259 1,627 191 1,436 19........ 63 7,448 -7,386 51.5 11,692 4,244 3,789 7,904 455 1,671 173 1,498 26........ 66 6,319 -6,253 46.0 10,909 4,590 3,963 6,946 627 1,851 109 1,742 Feb. 2........ 100 5,897 -5,797 42.8 10,686 4,788 4,108 6,578 681 1 ,844 73 1,771 9........ -23 22 6,885 -6,930 51.6 11,669 4,784 4,102 7,567 683 1,639 121 1,518 16........ 89 1 6,341 -6,253 46.1 11,845 5,504 3,983 7,862 1 ,521 1 ,443 303 1,140 23........ 48 5,569 -5,521 41.4 11,458 5,889 4,193 7,265 1 ,696 1,787 210 1,576 8 in New York City 1972—Jan. 5........ 79 2,881 -2,802 50.4 3,765 884 884 2,881 1,488 77 1,411 12........ -18 3,078 -3,096 55.6 3,985 907 907 3,078 1,183 96 1,087 19....... 75 2,844 -2,769 48.7 3,629 785 785 2,844 1,241 69 1,172 26 . -8 2,374 -2,382 45.0 3,242 868 868 2,374 1,403 45 1,358 Feb. 2........ 53 2,214 -2,160 40.6 3,148 934 934 2,214 1 ,397 30 1,366 9........ -47 3,066 -3,135 59.4 3,851 785 785 3,066 1 ,332 56 1,276 16........ 124 3,552 -3,427 63.9 4,350 798 798 3,552 1 ,252 60 1, 191 23. , . -3 2,980 -2,984 56.7 3,789 809 809 2,980 1 ,467 52 1,415 38 outside New York City 1972—Jan. 5....... 75 3,686 -3,611 43.2 8,005 4,319 3,567 4,438 752 535 400 136 12 . 56 4,888 -4,833 57.0 8,980 4,092 3,832 5,148 259 443 95 349 19........ -12 4,604 -4,616 53.3 8,064 3,459 3,004 5,059 455 429 103 326 26....... 74 3,945 -3,872 46.6 7,667 3,722 3,095 4,572 627 448 63 385 Feb. 2........ 47 3,683 -3,637 44.3 7,538 3.854 3,174 4,364 681 448 43 405 9........ 24 3,818 -3,795 46.6 7,818 3,999 3,317 4,501 683 307 65 242 16........ -35 2,790 -2,826 34.5 7,496 4,706 3,185 4,310 1 ,521 191 242 -52 23........ 51 2,589 -2,537 31.4 7,669 5,081 3,385 4,284 1 ,696 320 158 162 5 in City of Chicago 1972—Jan. 5........ 12 1,361 -1,349 96.6 2,006 644 567 1,439 78 69 69 12 15 1,799 -1,784 126.0 2,521 722 679 1 ,843 44 77 77 19........ -10 1 ,708 -1 ,718 120.7 2,319 611 574 1,744 36 74 74 26........ 6 1 ,443 -1 ,436 108.1 2,060 617 569 1 ,490 47 108 108 Feb. 2........ 14 1,390 -1,376 104.3 2,078 688 638 1,441 51 110 110 9........ 1 1,510 -1,508 114.8 2,132 622 585 1,547 37 95 95 16. -9 1,406 -1,415 106.1 2,107 700 598 1,509 103 89 89 23........ 18 1 ,288 -1,270 97.9 2,096 808 703 1 ,393 105 136 136 33 others 1972—Jan. 5........ 63 2,325 -2,262 32.5 5,999 3,674 3,000 2,999 674 466 400 67 12 41 3,089 -3,049 43.2 6,459 3,369 3,154 3,305 216 366 95 271 19........ -2 2,896 -2,898 40.0 5,745 2,849 2,430 3,315 419 355 103 252 26........ 67 2,502 -2,435 34.9 5,608 3,105 2,526 3,082 580 340 63 277 Feb. 2........ 32 2,293 -2,261 32.8 5,459 3,166 2,536 2,924 631 337 43 294 9........ 23 2,309 -2,286 33.5 5,686 3,377 2,732 2,955 646 213 65 148 16 -27 1,383 -1,411 20.5 5,389 4,006 2,588 2,801 1,418 102 242 -140 23........ 33 1,301 -1,268 18.7 5,573 4,273 2,682 2,892 1,591 184 158 26 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

MARCH 1972 □ F.R. BANK INTEREST RATES A 9 CURRENT RATES (Per cent per annum) Loans to member banks Loans to all others under Under Secs. 13 and 13a 1 Under Sec. 10(b):1 last par. Sec. 13 3 Federal Reserve Bank F R e a 1 b t 9 e . 7 2 2 o 9 n , Ef d fe a c t t e ive Pre ra v t i e ous F R e a 1 b t 9 . e 7 2 2 o 9 n , Ef d fe a c t t e ive Pre ra v t i e ous F R e a 1 b t 9 e . 7 2 2 o 9 n , Ef d fe a c t t e ive Pre r v at i e ous B N o ew st o Y n. o .. r .. k .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 % /z D De e c c . . 1 17 3 , , 1 19 97 71 1 4 4 V y 4 4 5 5 D De ec c . . 1 1 3 7 , , 1 1 9 9 7 7 1 1 5 5 V V a 4 6 6 V Vi i D D e e c c . . 1 1 3 7 , , 1 19 97 7 1 1 6 6 V V 4 a Philadelphia.................................... 4% Dec. 17, 1971 4 y4 5 Dec. 17, 1971 5V4 6 Vi Dec. 17, 1971 6Va R Cl i e c v h e m la o n n d d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 1 % /2 D D e e c c . . 2 1 4 7 , , 1 1 9 9 7 7 1 1 4 4V y4 a 5 5 D D e e c c. . 2 1 4 7 , , 1 1 9 9 7 7 1 1 5 5V V a a 6 61 V /2 i D De e c c . . 2 1 4 7 , , 1 19 97 7 1 1 6 6% V4 C A h tl i a ca n g ta o . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 1 1 / /2 2 D De e c c. . 2 1 3 7 , , 1 1 9 9 7 7 1 1 4 4 V 34 a 5 5 D D e e c c . . 2 1 3 7 , , 1 1 9 9 7 7 1 1 S 5V V 4 a 6 6 V V i i D D e e c c. . 2 1 3 7, , 1 19 9 7 71 1 6 6 % Va St. Louis.......................................... 4% Dec. 13, 1971 4% 5 Dec. 13, 1971 5 Va 6 Vi Dec. 13, 1971 6V4 Minneapolis.................................... 4 Vi Dec. 23, 1971 4% 5 Dec. 23, 1971 5V4 6 Vi Dec. 23, 1971 6% D Ka a n ll s a a s s .. . C ... i . t .. y .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 4 V Vi i D D e e c c. . 2 1 4 3 , , 1 1 9 9 7 7 1 1 4 4V V 4 4 5 5 D D e e c c . . 2 1 4 3 , , 1 1 9 9 7 7 1 1 5 5V V 4 a 6 6 V V i i D D e e c c . . 2 1 4 3 , , 1 1 9 9 7 7 1 1 6 6 V V a 4 San Francisco................................. 4 Vi Dec. 13, 1971 4Y4 5 Dec. 13, 1971 51/4 6 Vi Dec. 13, 1971 6y4 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 iy.Y. In effect Dec. 31, 1954 lVi lVi 1959—Mar. 6................... 21/2-3 3 1969—Apr. 4.................... 5Vi-6 6 16.................... 3 3 8.................... 6 6 1955—Apr. 14............ lVi-l3/4 11/2 May 29.................... 3 -31/2 31/2 15............ 134 June 12.................... 3Vi 31/2 May 2............ l3/4 134 Sept. 11.................... 31/2-4 4 1970—Nov. 11.................... 534-6 6 Aug. 4............ l%-2*4 134 18................... 4 4 13.................... 534-6 534 5............ 1M-2V4 2 16.................... 534 534 S N e o p v t . . 1 1 1 9 8 2 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 i/ 2 4 V - - - 2 2 2 a V U Ya i 2 2 2 2 1 1 1 / / 4 2 4 1960—J A u u n g e . 1 1 1 3 2 0 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 1 1 / / 3 2 2 1 - - - / 3 2 4 4 Vi 4 3 3 3 1 V /2 i Dec. 1 4 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 1 1 / / 5 2 2 V - - 5 5 i 3 3 / 4 4 5 5 5 1 V 3 / 4 2 4 23............ 2 Vi 2Vi Sept. 9.................... 3 3 1956— A A u p g r. . 2 2 3 1 0 4 1 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 1 3 3 / / 3 4 2 4 - - - 3 3 3 2 2 3 3 3 3 / 4 4 1 1 9 9 6 6 4 3— — J N u o ly v . 2 2 3 1 4 6 0 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 3 V - V i 3 - i 1 4 /2 4 4 3 3 1 % /2 1971—Jan. 2 2 1 1 8 2 9 5 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 5 14 5 5 - 1 - - 5 5 5 4 1 V 1 / 4 4 2 5 5 5 5 51 1 1 / 4 4 4 1957—Aug. 9............ 3 -3 Vi 3 Feb. 13................... 434-5 5 2 3 3Vi 3Vi 1965—Dec. 6................... 4 -41/2 41/2 19................... 434 434 N D o ec v . . 1 2 5. . . . . . . . . . . . . . . . . . . . . . . . 3 3 -3Vi 3 3 13................... 41/2 41/2 July 16................... 434-5 5 1967—Apr. 7................... 4 -41/2 4 23................... 5 5 1958—Jan. 22............ 234-3 3 14.................... 4 4 Nov. 11................... 434-5 5 2 4 23/4-3 234 Nov. 20................... 4 -41/2 41/2 19................... 434 434 Mar. 2 1 7 1 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 21 1 2 4 4 1 - - 2 3 4 34 2 2 21 1 1 / 4 4 4 1968—Mar. 2 1 7 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4V 4 i V -5 i 4 4 V % i Dec. 2 1 4 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4V 4 i V -4 i 34 4 4 3 V 4 i A M p a r y . 1 9 8 . . . . . . . . . .. .. . . . . . . . . .. . 13 1 4 3 -2 4 14 1 1 3 3 4 4 Apr. 2 1 2 9 . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. 5 5 -51/2 5 5 Vi In effect Feb. 29, 1972....... 4Vi 4Vi Aug. 15............ 134-2 13/4 26.................... 5Vi 5 Vi Sept. 12............ 134-2 2 Aug. 16................... 514-5 Vi 51/2 23............ 2 2 30................... 514 51/4 Oct. 24............ 2 -2 Vi 2 Dec. 18................... 514-51/2 5 Vi Nov. 7............ 21/2 2Vi 20.................. 51/2 51/2 Note.—Rates under Secs. 13 and 13a (as described in table and notes 2.75; Oct. 5, 2.50; Oct. 23, Nov. 3, 2.75; 1962—Mar. 20-21, 2.75; 1964above). For data before 1955, see Banking and Monetary Statistics, 1943, Dec. 10, 3.85; Dec. 15, 17, 22, 24, 28,30,31,3.875; 1965—Jan. 4-8, 3.875; pp. 439-42 and Supplement to Section 12, p. 31. 1968—Apr. 4, 5, 11, 15, 16, 5.125; Apr. 30, 5.75; May 1-3, 6, 9, 13-16, The rate charged by the F.R. Bank of N.Y. on repurchase contracts 5.75; June 7, 11-13, 19, 21, 24, 5.75; July 5, 16, 5.625; Aug. 16, 19, 5.25; against U.S. Govt, obligations was the same as its rate on loans to member 1971—Jan. 21, 27, 4.75; Feb. 1-2, 4.50; 4, 11, 4.25; 16-17, 4.00; 18-19, banks under Secs. 13 and 13a, except in the following periods (rates in 3.75. Mar. 1-2, 10, 12, 15-18, 24, 29-31, 3.75. Apr. 1-2, 5-6, 3.75; 13, 15, percentages): 1955—May 4-6, 1.65; Aug. 4, 1.85; Sept. 1-2, 2.10; Sept. 21, 28, 4.125. May 3-6, 17, 4.125; 18-20, 4.375; 26-27, 4.50; June 1, 8, 2.15; Nov. 10, 2.375; 1956—Aug. 24-29, 2.75; 1957—Aug. 22, 3.50; 4.50; Nov. 15-18,4.75; Dec. 17,4.125; 22,4.05;23,3.75; 27, 3.75; 28-29, I960—Oct. 31-Nov. 17, Dec. 28-29, 2.75; 1961—Jan. 9, Feb. 6-7, 2.75; 3.625; 30, 3.625 and 3.75. 1972-Jan. 3, 5-7, 3.75; 10, 3.625; 11, 13-14, Apr. 3-4, 2.50; June 29, 2.75; July 20, 31, Aug. 1-3, 2.50; Sept. 28-29, 18-19, 3.50; Feb. 11, 14-16, 3.25. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 10 RESERVE AND MARGIN REQUIREMENTS □ MARCH 1972 RESERVE REQUIREMENTS OF MEMBER BANKS (Per cent of deposits) Dec. 31, 1949, through July 13, 1966 Beginning July 14, 1966 Net demand Net demand Time deposits 4.5 deposits 2 deposits 2’4 (all classes of banks) Time depos­ its Reserve Country Other Effective date 1 C re e c s n i e t t r y r v a e l s c R e i r t e v y ­ e C ba o tr n u y k n s ­ b cl a ( a o n a s l k f s l e s s ) Effective date 1 Un c d it e y r ban O k v s er Unde b r a nks Over d S e in i p a t g v s o s ­ s­ U ti n m d e e r d ep O os v it e s r banks banks $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ $5 mil­ lion lion lion lion lion lion 6 In effect Dec. 31, 1949. 22 18 12 1966—July 14,21. >16i/2 12 64 64 Sept. 8, 15. 1951—Jan. 11,16....... 23 19 13 Jan. 25, Feb. 1 24 20 14 1967—Mar. 2. 3% 3% 1953—July 9,1......... 22 19 13 Mar. 16. 3 3 1954—June 24, 16....... 21 July 29, Aug. 1 20 18 12 1968—Jan. 11,18.... I61/2 17 12 12% 1958—Feb. 27, Mar. 1 191/2 171/2 11 Vi Mar. 20, Apr. 1 19 17 11 1969—Apr. 17............ 17 17% 121/2 13 Apr. 17.............. 18 Vi Apr. 24.............. 18 I6I/2 1970—Oct. 1............... 1960—Sept. 1.............. 171/2 Nov. 24............. 12 In effect Feb. 29, 1972. 17 171/i 12% 13 Dec. 1.............. I6I/2 1962—July 28.............. (3) Present legal Oct. 25, Nov. 1 requirement: Minimum........ 10 7 3 3 3 Maximum........ 22 14 10 10 10 1 When two dates are shown, the first applies to the change at central rowings above a specified base from foreign banks by domestic offices reserve or reserve city banks and the second to the change at country of a member bank. For details concerning these requirements, see Regula­ banks. For changes prior to 1950 see Board’s Annual Reports. tions D and M and appropriate supplements and amendments thereto. 2 Demand deposits subject to reserve requirements are gross demand 5 Effective Jan. 5, 1967, time deposits such as Christmas and vacation deposits minus cash items in process of collection and demand balances club accounts became subject to same requirements as savings deposits. due from domestic banks. 6 See preceding columns for earliest effective date of this rate. 3 Authority of the Board of Governors to classify or reclassify cities as central reserve cities was terminated effective July 28, 1962. Note.—All required reserves were held on deposit with F.R. Banks 4 Since Oct. 16, 1969, member banks have been required under Regula­ June 21, 1917, until Dec. 1959. From Dec. 1959 to Nov. 1960, member tion M to maintain reserves against balances above a specified base due banks were allowed to count part of their currency and coin as reserves; from domestic offices to their foreign branches. Effective Jan. 7, 1971, the effective Nov. 24, 1960, they were allowed to count all as reserves. For applicable reserve percentage was increased from the original 10 per cent further details, see Board’s Annual Reports. to 20 percent. Regulation D imposes a similar reserve requirement on bor­ MARGIN REQUIREMENTS (Per cent of market value) Period For credit extended under Regulations T (brokers and dealers), U (banks), and G (others than brokers, dealers, or banks) On margin stocks On convertible bonds Beginning Ending On short sales date date (T) 1937—Nov. 1 1945—Feb. 4 40 50 1945—Feb. 5 July 4 50 50 July 5 1946—Jan. 20, 75 75 1946—Jan. 21 1947—Jan. 31 100 100 1947—Feb. 1 1949—Mar. 29 75 75 1949—Mar. 30 1951—Jan. 16 50 50 1951—Jan. 17 1953—Feb. 19 75 75 1953—Feb. 20 1955—Jan. 3 50 50 1955—Jan. 4 Apr. 22 60 60 Apr. 23 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 1970— May 6 1971—Dec. 2 65 50 65 Effective Dec. 3, 1971 55 50 55 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

MARCH 1972 □ MAXIMUM INTEREST RATES; BANK DEPOSITS A 11 MAXIMUM INTEREST RATES PAYABLE ON TIME AND SAVINGS DEPOSITS (Per cent per annum) Rates Jan. 1, 1962—July 19, 1966 Rates beginning July 20, 1966 Effective date Effective date Type of deposit Type of deposit Jan. 1, July 17, Nov. 24, Dec. 6, July 20, Sept. 26, Apr. 19, Jan. 21, 1962 1963 1964 1965 1966 1966 1968 1970 Savings deposits: 1 Savings deposits............. 4 Vi 12 months or more. . 4 4 Other time deposits:2 Less than 12 months. 3Vi 3% Multiple maturity:3 30-89 days........... 4 4 Vi 90 days-1 year... 5 1 year to 2 years.. 5 5 Vi 2 years and over.. 5*/4 Single-maturity: Less than $100,000: Other time deposits: 2 30 days to 1 year.. 5 12 months or more 4 1 year to 2 years.. 5 Vi 5% 9 6 0 m d o a n y t s h t s o t o 6 m 12 o m nt o h n s t . h . s . 2 3 V V z i 5Vi $1 2 0 0 y , e 0 a 0 r 0 s a a n n d d o o v v e e r r: . . 5*/4 Less than 90 days......... 1 30-59 days.......... 5 Vi (4) (30-89 days) 60-89 days.......... 5V4 (4) 90-179 days........ 5 Vi 5 Vi 6 ey4 180 days to 1 year. 7 1 year or more... W/4 7 Vi 1 Closing date for the Postal Savings System was Mar. 28, 1966. Max­ 60-89 days. Effective June 24, 1970, maximum interest rates on these imum rates on postal savings accounts coincided with those on savings maturities were suspended until further notice. deposits. 2 For exceptions with respect to certain foreign time deposits, see Note.—Maximum rates that may be paid by member banks are estab­ Bulletins for Oct. 1962, p. 1279; Aug. 1965, p. 1084; and Feb. 1968, lished by the Board of Governors under provisions of Regulation Q; p. 167. however, a member bank may not pay a rate in excess of the maximum 3 Multiple-maturity time deposits include deposits that are automati­ rate payable by State banks or trust companies on like deposits under cally renewable at maturity without action by the depositor and deposits the laws of the State in which the member bank is located. Beginning that are payable after written notice of withdrawal. Feb. 1, 1936, maximum rates that may be paid by nonmember insured 4 The rates in effect beginning Jan. 21 through June 23, 1970, were 6V4 commercial banks, as established by the FDIC, have been the same as per cent on maturities of 30-59 days and 6Vi per cent on maturities of those in effect for member banks. DEPOSITS, CASH, AND RESERVES OF MEMBER BANKS (In millions of dollars) Reserve city banks Reserve city banks Item m b e a A m n l k b l s er Y N o e r w k C o it f y Other C b o a u n n k t s ry Item m b e a A m n l k l b s er Y N o e r w k C o it f y Other C b o a u n n k t s ry City Chicago City Chicago Four weeks ending December 29, 1971 Four weeks ending January 26, 1972 Gross demand—Total. .. 199,926 43,690 8,251 70,930 77,056 Gross demand—Total.... 203,930 44,766 8,246 72,179 78,739 Interbank..................... 26,750 12,221 1,543 9,837 3,150 Interbank...................... 27,971 12,937 1,516 10,121 3,396 U.S. Govt..................... 5,597 1,158 283 2,120 2,037 U.S. Govt..................... 5,904 984 250 2,287 2,383 Other............................ 167,580 30,311 6,425 58,974 71,870 170,055 30,845 6,479 59,772 72,960 Net demand 1................. 151,846 27,285 6,486 53,758 64,318 Net demand 1................... 154,107 27,350 6,488 54,685 65,584 Time................................. 209,649 25,623 7,705 76,449 99,872 Time.................................. 213,086 25,514 7,658 78,360 101,555 Demand balances due Demand balances due from domestic banks. . 11,512 1,510 162 2,638 7,202 from domestic banks... 11,994 1,553 148 2,803 7,491 Currency and coin.......... 5,677 464 113 1,798 3,302 Currency and coin........... 5,906 480 129 1,875 3,422 Balances with F.R. Balances with F.R. Banks........................... 25,566 5,264 1 ,316 10,399 8,587 27,060 5,618 1,394 11,128 8,922 Total reserves held.......... 31,243 5,728 1 ,429 12,197 11,889 Total reserves held........... 32,966 6,098 1,523 13,003 12,344 Required....................... 31,085 5,731 1,419 12,200 11,735 32,759 6,094 1,524 12,978 12,164 Excess........................... 158 -3 10 -3 154 207 4 -1 25 180 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

A 12 FEDERAL RESERVE BANKS □ MARCH 1972 CONSOLIDATED STATEMENT OF CONDITION OF ALL FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 Feb. 23 Feb. 16 Feb. 9 Feb. 2 Jan. 26 Feb. 29 Jan. 31 Feb. 28 Assets 9,475 9,475 9,875 9,875 9,875 9,475 9,875 10,464 Special Drawing Rights certificate account............... 400 400 400 400 400 400 400 400 324 322 319 309 306 326 313 266 Loans: t Member bank borrowings......................................... 18 29 175 25 18 6 15 263 Acceptances: Bought outright......................................................... 63 68 68 73 77 63 75 54 Held under repurchase agreements.........................; 75 Federal agency obligations: Bought outright.......................................................... 738 792 643 643 650 727 650 Held under repurchase agreements........................... 76 U.S. Govt, securities: Bought outright: Bills......................................................................... 29,482 30,575 30,096 30,296 30,655 28,299 30,296 25,801 Certificates—Other................................................. Notes....................................................................... 36,034 35,952 35,905 35,905 35,905 36,034 35,905 33,624 Bonds...................................................................... 3,365 3,304 3,351 3,351 3,351 3,365 3,351 3,037 Total bought outright................................................ i 68,881 i 69,831 i 69,352 i 69,552 i 69,911 i* 267,698 i 69,552 i 62,462 Held under repurchase agreements........................... 1,229 68,881 71,060 69,352 69,552 69,911 67,698 69,552 62,462 Total loans and securities.............................................. 69,700 72,100 70,238 70,293 70,656 68,494 70,292 62,779 Cash items in process of collection.............................. 10,820 11,875 10,129 10,846 10,952 10,441 9,221 9,579 Bank premises................................................................ 153 153 153 152 151 154 152 131 Other assets: 17 17 17 17 17 17 17 107 IMF gold deposited 3................................................ 144 144 144 144 159 All other..................................................................... 471 441 1,043 998 949 485 967 435 91,360 94,783 92,318 93,034 93,450 89,792 91,381 84,320 Liabilities F.R. notes....................................................................... 52,676 52,629 52,626 52,346 52,490 52,549 52,229 48,868 Deposits: Member bank reserves.............................................. 26,312 27,723 26,003 26,056 26,848 25,535 25,650 24,409 U.S. Treasurer—General account............................. 1,139 2,531 2,781 3,173 2,862 884 2,860 1,064 178 145 145 172 146 137 147 147 Other: IMF gold deposited 3............................................ 144 144 144 144 159 590 612 595 635 572 677 670 617 28,219 31,011 29,668 30,180 30,572 27,233 29,471 26,396 8,229 8,945 7,619 8,157 8,109 7,716 7,337 6,747 Other liabilities and accrued dividends......................... 523 551 545 556 546 521 565 535 Total liabilities............................................................... 89,647 93,136 90,458 91,239 91,717 88,019 89,602 82,546 Capital accounts Capital paid in............................................................... 752 752 752 752 751 753 752 711 742 742 742 742 742 742 742 702 219 153 366 301 240 278 285 361 Total liabilities and capital accounts........................... 91,360 94,783 92,318 ' 93,034 93,450 89,792 91,381 84,320 Contingent liability on acceptances purchased for foreign correspondents.............................................. 265 264 253 253 252 267 253 266 Marketable U.S. Govt, securities held in custody for foreign and international accounts............................ 28,288 28,698 28,917 28,455 28,390 29,317 28,420 13,057 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)..................... 56,792 56,745 56,792 56,892 57,045 56,759 56,963 52,791 Collateral held against notes outstanding: 2,445 2,445 2,445 2,445 2,445 2,445 2,445 3,220 U.S. Govt, securities.................................................. 56,025 56,025 56,025 56,075 56,075 56,025 56,075 51,665 58,470 58,470 58,470 58,520 58,520 58,470 58,520 54,885 1 See note 6 on p. A-5. 3 See note to table at bottom of page. 2 See note 7 on p. A-5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FEDERAL RESERVE BANKS A 13 STATEMENT OF CONDITION OF EACH FEDERAL RESERVE BANK ON FEBRUARY 29, 1972 (In millions of dollars) Item Total Boston Y N o e r w k P p d h h e i i l l a a ­ ­ C l l a e n v d e­ m Ri o c n h d ­ At t l a an­ c C a h g i o ­ L S ou t. is M ap i o n l n is e­ K C s a a it n s y ­ Dallas F c S i r s a a c n n o ­ Assets Gold certificate account.................. 9,475 565 2,936 486 857 993 418 1,300 387 117 290 304 822 Special Drawing Rights certif. acct.. 400 23 93 ■ 23 33 36 22 70 15 7 15 14 49 F.R. notes of other banks............... 1,365 157 261 128 79 85 279 74 25 24 34 67 152 Other cash........................................ 326 10 26 12 38 42 38 40 19 10 35 17 39 Loans: t Secured by U.S. Govt, and agency obligations.................................... Other................................................. Acceptances: Bought outright............................... 63 63 Held under repurchase agreements.. Federal agency obligations: Bought outright................................ 727 34 184 39 55 54 38 118 27 14 30 33 101 Held under repurchase agreements.. U.S. Govt, securities: Bought outright............................... 1,267,6 3,167 17,120 3,590 5,170 5,054 3,568 11,015 2,496 1,306 2,771 3,064 9,377 Held under repurchase agreements.. Total loans and securities................... 68,494 3,201 17,368 3,629 5,225 5,108 3,608 11,133 2,523 1,321 2,803 3,097 9,478 Cash items in process of collection.. 13,420 739 2,629 779 976 817 1,487 2,156 686 535 857 896 863 Bank premises.................................... 154 2 3 25 13 16 17 15 21 17 Other assets: Denominated in foreign currencies. 17 3 5 1 1 2 All other......................................... 485 46 117 28 35 59 Total assets. 94,136 4,744 23,443 5,089 7,269 7,130 5,893 14,862 3,687 2,046 4,069 4,432 11,472 Liabilities F.R. notes.......................................... 53,914 2,884 13,305 3,145 4,377 4,789 2,679 9,319 2,089 906 2,016 2,079 6,326 Deposits: Member bank reserves................... 25,535 917 7,030 1,139 1,781 1,327 1,686 3,227 938 618 1,180 1,552 4,140 U.S. Treasurer—General account. 884 94 250 20 18 85 76 64 31 49 60 47 90 Foreign........................................... 137 6 4 45 6 11 6 9 19 4 3 5 7 16 Other: All other............:....................... 706 530 17 33 24 Total deposits. 27,262 1,017 7,855 1,167 1,810 1,435 1,804 3,403 974 670 1,247 1,610 4,270 Deferred availability cash items......... 10,666 740 1,696 657 883 770 1,265 1,781 546 417 708 628 575 Other liabilities and accrued dividends 521 25 131 29 40 39 30 86 19 14 22 23 63 Total liabilities................... 92,363 22.987 4,998 7,110 7,033 5,778 14.589 3,628 2,007 3.993 4.340 11.234 Capital accounts Capital paid in............. 753 194 115 32! 98 Surplus........................... 742 193 111 32 95 Other capital accounts. 278 69 47 12 45 Total liabilities and capital accounts.. 94,136 4,744 23,443 5,089 7,269 7,130 5,893 14,862 3,687 2,046 4,069 4,432 11,472 Contingent liability on acceptances purchased for foreign correspond­ ents.................................................... 267 12 5 67 14 251 14 Federal Reserve Notes—Federal Reserve Agents’ Accounts F.R. notes outstanding (issued to Bank)............................................ 56,759 3,061 14,089 3,276 4,595 4,950 2,977 9,650 2,168 933 2,099 2,224 6,737 Collateral held against notes out­ standing: Gold certificate account.................. 2,445 150 500 300 350 285 700 155 5 U.S. Govt, securities....................... 56,025 3,000 13,800 3,150 4,400 4,720 3,100 9,300 2,080 970 2,175 2,330 Total collateral. 58,470 3,150 14,300 3,450 4,750 5,005 3,100 10,000 2,235 970 2,175 2,335 7,000 t Previously referred to as Discounts and advances. 4 After deducting $92 million participations of other F.R. Banks. 1 See note 6 on p. A-5. 5 After deducting $200 million participations of other F.R. Banks. 2 See note 7 on p. A-5. 3 After deducting $12 million participations of other F.R. Banks. Note.—Some figures for cash items in process of collection and for member bank reserves are preliminary. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 14 OPEN MARKET ACCOUNT □ MARCH 1972 TRANSACTIONS OF THE SYSTEM OPEN MARKET ACCOUNT (In millions of dollars) Outright transactions in U.S. Govt, securities, by maturity Total Treasury bills Others within 1 year 1-5 years Month Exch., c G p h r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G h p r a u o s r s e ­ s s G sa r l o e s s s Re ti d o e n m s p­ c G p h r a u o s r s e ­ s s G sa r l o e s s s m re s a d h t o e i u f m r t r s i p , ty ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s m E s a h x t i u c f r h t i s . ty tions 1971—Jan.. 1,515 1,547 327 1,515 1,547 327 Feb. 5,832 5,153 5,347 5,153 -3,732 174 4,092 Mar. 3,142 2,523 240 2,600 2,523 240 263 Apr. 2,229 1,298 50 2,033 1,298 50 2 119 -2 May 1,291 248 1,163 248 464 46 -136 June 1,955 1,165 37 1,893 1,165 37 82 38 -82 July. 2,067 1,617 127 2,067 1,617 127 Aug. 1,818 1,024 1,709 1,024 991 84 -444 Sept. 2,102 1,088 83 1 ,818 1 ,088 83 46 104 189 -104 Oct.. 772 1,133 772 1,133 Nov. 1,883 1,070 266' 1,129 1,070 ’260 24 -3,548 406 1,478 Dec. 3,160 1,981 3,055 1,981 11 130 21 -130 1972—Jan.. 915 248 499 248 187 Outright transactions in U.S. Govt, securities—Continued Repurchase Bankers’ agreements Federal agency acceptances (U.S. Govt, Net obligations (net) 5-10 years Over 10 years securities) change Month in U.S. Under Net Govt, repur­ change1 c G p h r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G h p r a u o s r s e ­ s s G sa r l o e s s s o E t s r u h x r i m c i f t h t y a s . ­ c G p h r a u o s r s e ­ s s G sa ro le s s s se it c ie u s r­ r O ig u h t t ­ R a m c g h e e r p a n e s u e t e s r ­ ­ r O i n g u e h t t t ­ , m a c g h n e r a e n e s t t e e s ­ , 1971—Jan.. 2,298 2,298 -359 2 -357 Feb. 189 -360 121 4.183 4,183 679 -5 673 Mar.. 205 74 6,561 5,242 1,698 186 85 1,968 Apr. . 62 16 5,085 6,404 -439 -186 -85 -707 May . 82 -327 4,076 4,076 1,043 48 1,099 June . 11 14 1,165 1,165 754 -1 -48 705 July, 3,044 3,044 323 -7 316 Aug.. 16 -547 ’ 8 2.184 1,951 1,027 69 -3 ’55* 1,148 Sept.. 34 14 3,697 3,930 698 61 -69 -1 -55 634 Oct... 2,616 2,616 -361 35 1 -326 Nov.. 267 1,920 58 150 5,003 5,003 613 244 6 862 Dec.. 67 6 4,830 3,607 2,401 145 22 181 2,850 1972—Jan. . 4,722 5,945 -666 165 -181 -787 1 Net change in U.S. Govt, securities, Federal agency obligations, and Note.—Sales, redemptions, and negative figures reduce System hold­ bankers’ acceptances. ings; all other figures increase such holdings. CONVERTIBLE FOREIGN CURRENCIES HELD BY FEDERAL RESERVE BANKS (In millions of U.S. dollar equivalent) E pe n r d i o o d f Total s P t o e u rl n in d g s s A ch u i s l t l r i i n a g n s B fr e a lg n i c a s n C d a o n l a la d r i s an D kr a o n n is e h r F fr r a e n n c c s h G m e a rm rk a s n Ita li l r i e an Jap y a e n n ese g N u l e a i n t ld h d e e s r r s ­ f S r w an is c s s 1968—Dec .......... 2 061 1 ,444 8 3 433 165 1 1 4 3 1969—Dec............ 1,967 1,575 1 * 199 60 125 1 3 4 1970_Nov 265 161 * * 98 1 * 4 Dec 257 154 * ♦ 98 1 * 4 1971_Jan 186 80 1 * 99 1 5 Feb 107 * 1 * 100 1 5 Mar . ... 34 * 1 * 27 1 5 Apr............. 34 * 1 * 27 1 5 94 * 1 * 87 1 5 June 96 * 2 * 87 1 6 July 23 * 2 41 12 1 8 23 * 2 * 12 1 8 Sept .... 23 * 2 * 12 1 8 Oct.............. 30 * 9 * 12 1 8 Nov 15 * 4 ♦ 2 1 8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FEDERAL RESERVE BANKS; BANK DEBITS A 15 MATURITY DISTRIBUTION OF LOANS AND U.S. GOVERNMENT SECURITIES HELD BY FEDERAL RESERVE BANKS (In millions of dollars) Wednesday End of month Item 1972 1972 1971 Feb. 23 Feb. 16 Feb. 9 Feb. 2 Jan. 26 Feb. 29 Jan. 31 Feb. 28 Loans—Total........... 18 29 175 25 19 15 264 Within 15 days___ 17 28 173 24 17 14 263 16 days to 90 days. 1 1 2 1 2 1 1 91 days to 1 year.. Acceptances—Total.. 63 143 68 73 77 63 75 54 Within 15 days.. .. 21 92 20 20 13 20 19 22 16 days to 90 days. 42 51 48 53 64 43 56 32 91 days to 1 year.. U.S. Government securities— 68,881 71,060 69,352 69,552 69,911 67,698 69,552 62,462 Within 15 days1................ 4,339 5,894 4,634 4,493 4,622 2,320 3,103 c 2,474 16 days to 90 days............ 16,576 16,697 14,465 14,659 14,671 17,134 16,049 15,410 91 days to 1 year.............. 14,841 15,477 15,960 16,107 16,325 15,119 16,107 14,557 Over 1 year to 5 years.... 26,318 26,245 25,286 25,286 25,286 26,318 25,286 23,356 Over 5 years to 10 years.. 5,647 5,595 7,855 7,855 7,855 5,647 7,855 5,875 Over 10 years.................... 1,160 1,152 1,152 1,152 1,152 1,160 1,152 790 Federal agency obligations—Total. 738 868 643 643 650 727 650 Within 15 days1........................... 11 89 7 7 16 days to 90 days........................ 7 15 28 28 25 6 25 91 days to 1 year.......................... 175 218 178 178 181 186 181 Over 1 year to 5 years................. 376 377 288 288 288 366 288 Over 5 years to 10 years.............. 99 99 91 91 91 99 91 Over 10 years................................ 70 70 58 58 58 70 58 1 Holdings under repurchase agreements are classified as maturing within 15 days in accordance with maximum maturity of the agreements. BANK DEBITS AND DEPOSIT TURNOVER (Seasonally adjusted annual rates) Debits to demand deposit accounts1 Turnover of demand deposits (billions of dollars) Period SM T 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l 2 . . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s S T M 2 o 3 S t 3 a A l ’s N Le .Y ad . ing S 6 M o S t A he ’s rs2 T S o N M ( t e a . x S Y l c A l . 2 . ) 3 ’s 2 SM o 2 th 2 S 6 e A r ’s 970—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 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............................... 11,770.0 5,147.4 2,773.9 6,622.6 3,848.8 79.8 178.9 82.7 55.8 45.2 Aug............................... 12,369.5 5,704.9 2,795.7 6,664.7 3,869.0 83.7 198.7 83.4 56.0 45.3 Sept.............................. 12,310.5 5,613.7 2,815.3 6,696.8 3,881.4 83.0 191.7 84.0 56.3 45.4 Oct................................ 12,270.1 5,776.2 2,710.9 6,493.9 3,783.1 83.3 201.5 81.1 54.7 44.4 Nov.............................. 12,896.2 6,057.5 2,857.1 6,838.6 3,981.6 87.0 211.0 85.2 57.3 46.4 Dec............................... r12,328.4 5,555.5 2,813.1 r6,772.8 *•3,959.7 83.1 195.6 83.5 56.5 r45.9 1 Excludes interbank and U.S. Govt, demand deposit accounts. For description of series, see Mar. 1965 Bulletin, p. 390. 2 Boston, Philadelphia, Chicago, Detroit, San Francisco-Oakland, and The data shown here differ from those shown in the Mar. 1965 Bulletin Los Angeles-Long Beach. because they have been revised, as described in the Mar. 1967 Bulletin, p. 389. Note.—Total SMSA’s includes some cities and counties not designated as SMSA’s. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 16 U.S. CURRENCY □ MARCH 1972 DENOMINATIONS IN CIRCULATION (In millions of dollars) Total Coin and small denomination currency Large denomination currency in cir­ End of period cula­ tion 1 Total Coin $1 2 $2 $5 $10 $20 Total $50 $100 $500 $1,000 $5,000 $10,00 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 1959. 32,591 23,264 2,304 1,511 85 2,216 6,672 10,476 9,326 2,803 5,913 261 341 3 5 1960 32,869 23,521 2,427 1,533 88 2,246 6,691 10,536 9,348 2,815 5,954 249 316 3 10 1961 33,918 24,388 2,582 1,588 92 2,313 6,878 10,935 9,531 2,869 6,106 242 300 3 10 1962. 35,338 25,356 2,782 1,636 97 2,375 7,071 11,395 9,983 2,990 6,448 240 293 3 10 1963. 37,692 26,807 3,030 1,722 103 2,469 7,373 12,109 10,885 3,221 7,110 249 298 3 1964. 39,619 28,100 3,405 1,806 111 2,517 7,543 12,717 11,519 3,381 7,590 248 293 2 1965 . 42,056 29,842 4,027 1,908 127 2,618 7,794 13,369 12,214 3,540 8,135 245 288 3 1966. 44,663 31,695 4,480 2,051 137 2,756 8,070 14,201 12,969 3,700 8,735 241 286 3 1967. 47,226 33,468 4,918 2,035 136 2,850 8,366 15,162 13,758 3,915 9,311 240 285 3 1968 , 50,961 36,163 5,691 2,049 136 2,993 8,786 16,508 14,798 4,186 10,068 244 292 3 1969. 53,950 37,917 6,021 2,213 136 3,092 8,989 17,466 16,033 4,499 11,016 234 276 3 1970 57,093 39,639 6,281 2,310 136 3,161 9,170 18,581 17,454 4,896 12,084 215 252 3 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 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 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 Apr............ 56,592 38,917 6,360 2,206 136 3,001 8,826 18,388 17,675 4,917 12,294 210 246 3 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 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 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 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 Sept........... 58,797 40,284 6,556 2,273 135 3,053 8,987 19,279 18,514 5,155 12,906 206 240 2 Oct............ 59,216 40,559 6,589 2,302 135 3,071 9,054 19,408 18,657 5,183 13,024 205 239 2 Nov........... 60,636 41,699 6,714 2,360 135 3,186 9,329 19,975 18,936 5,272 13,216 204 237 2 Dec............ 61,068 41,831 6,775 2,408 135 3,273 9,348 19,893 19,237 5,377 13,414 203 237 2 1972--Jan............. 59,429 40,388 6,774 2,281 135 3,083 8,900 19,215 19,042 5,261 13,337 202 235 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 Total, out­ Held by standing, As security For F.R. 1972 1971 Kind of currency Jan. 31, against Treasury F.R. Banks 1972 gold and cash Banks and silver and Agents Jan. Dec. Jan. certificates Agents 31 31 31 Gold................................................................................. 10,132 (9,875) 2 257 Gold certificates.............................................................. (9,875) 3 9,874 1 Federal Reserve notes.................................................... 56,964 192 4,731 52,041 53,678 48,482 Treasury currency—Total.............................................. 7,759 56 314 7,389 7,390 6,863 Dollars......................................................................... 621 17 24 581 566 482 Fractional coin........................................................... 6,521 38 290 6,193 6,209 5,773 United States notes.................................................... 323 1 321 321 311 In process of retirement4............................................ 294 294 294 298 Total—Jan. 31, 1972.................................................... 5 74,855 (9.875) 505 9.874 5,046 59,429 Dec. 31, 1971.................................................... 5 75,332 (9.875) 460 9.874 3,929 61,068 Jan. 31. 1971.................................................... 5 70,957 (10,464) 472 10,463 4,677 55,345 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. 4 Redeemable from the general fund of the Treasury. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ MONEY STOCK A 17 MEASURES OF THE MONEY STOCK (In billions of dollars) Seasonally adjustedr Not seasonally adjusted r Month or week M2 Mz Mi Mi Mi (Mi plus time (M2 plus deposits Mi {Mi plus time (M2 plus deposits (Currency plus deposits at coml. at nonbank thrift (Currency plus deposits at coml. at nonbank thrift demand deposits) banks other than institutions)2 demand deposits) banks other than institutions)2 large time CD’s) 1 large time CD’s) 1 1968—Dec................................ 197.4 378.0 572.6 203.4 383.0 577.5 1969—Dec................................ 203.7 386.8 588.3 209.8 392.0 593.4 1970—Dec................................ 214.8 418.2 634.0 221.2 423.5 637.2 1971—Feb................................ 217.7 430.4 653.4 215.6 427.8 650.4 Mar............................... 219.7 437.1 663.9 217.5 435.7 662.9 Apr................................ 221.2 441.5 672.5 222.3 443.7 675.2 May............................... 223.8 446.6 681.0 219.9 443.7 678.2 June............................... 225.5 450.6 687.8 223.7 449.1 687.1 July............................... 227.4 453.4 693.8 226.0 452.0 693.0 Aug............................... 228.0 454.5 697.6 224.9 451.7 694.5 Sept............................... 227.6 455.6 701.2 226.2 454.3 699.5 Oct................................. 227.7 458.3 706.5 227.5 458.0 705.9 Nov............................... 227.7 460.8 711.6 229.6 461.4 711.4 Dec................................ 228.2 464.7 718.1 235.1 470.2 723.4 1972—Jan................................. 228.8 469.9 727.3 235.3 475.3 732.8 Feb.P............................. 231.4 475.8 737.4 229.3 472.9 734.2 Week ending— 1972—Feb. 2....................... 229.8 472.2 230.7 472.8 9....................... 230.4 473.4 230.6 473.1 16....................... 231.4 475.8 229.9 473.2 23........................ 232.4 477.5 227.4 471.6 Mar. 1*>...................... 231.5 477.3 228.4 473.7 COMPONENTS OF MONEY STOCK MEASURES AND RELATED ITEMS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Commercial banks Commercial banks U.S. Month Non­ Non­ Govt, or bank bank depos­ week Cur­ De­ Time and savings thrift Cur­ De­ Time and savings thrift its 5 rency mand deposits institu­ rency mand deposits institu­ depos­ tions 4 depos­ tions 4 its its CD’s 3 Other Total CD’s 3 Other Total 1968—Dec.................... 43.4 154.0 23.6 180.6 204.2 194.6 44.3 159.1 23.6 179.6 203.2 194.6 5.0 1969—Dec.................... 46.0 157.7 11.0 183.2 194.1 201.5 46.9 162.9 11.1 182.1 193.2 201.4 5.6 1970—Dec.................... 49.0 165.8 25.5 203.4 228.9 215.8 50.0 171.3 25.8 202.3 228.1 213.6 7.3 1971—Feb.................... 49.7 168.0 27.5 212.7 240.2 223.0 49.1 166.5 27.4 212.2 239.6 222.6 8.4 50.0 169.7 28.1 217.4 245.4 226.8 49.5 168.0 28.0 218.2 246.2 227.2 5.5 Apr.................... 50.5 170.7 27.8 220.3 248.1 231.0 50.1 172.3 27.1 221.4 248.5 231.5 5.5 May................... 50.8 173.0 28.5 222.8 251.3 234.4 50.5 169.4 27.6 223.8 251.4 234.5 7.8 51.1 174.5 29.4 225.0 254.4 237.2 51.0 172.7 28.4 225.4 253.8 238.0 5.3 July................... 51.6 175.8 30.4 225.9 256.4 240.4 51.9 174.1 29.5 226.0 255.5 241.1 6.8 Aug................... 51.7 176.3 30.8 226.5 257.3 243.1 51.9 173.0 31.2 226.9 258.1 242.8 6.8 Sept................... 51.9 175.7 31.6 228.0 259.6 245.6 51.9 174.3 32.1 228.1 260.3 245.2 7.5 Oct..................... 52.2 175.5 32.7 230.6 263.3 248.3 52 2 175.3 33.6 230.5 264.1 247.9 5.3 Nov................... 52.2 175.5 32.2 233.1 265.3 250.8 52*. 8 176.9 33.7 231.8 265.5 250.0 3.9 Dec.................... 52.5 .75.7 33.4 236.4 269.9 253.4 53.5 181.5 33.9 235.1 269.0 253.2 6.7 1972—Jan..................... 52.8 176.0 33.2 241.2 274.4 257.4 52.6 182.7 33.7 240.0 273.7 257.5 7.2 Feb.^................. 53.2 178.2 33.8 244.3 278.1 261.7 52.6 176.6 33.6 243.7 277.3 261.2 7.2 Week ending— 1972—Feb. 2............ 52.9 176.9 33.4 242.4 275.8 52.0 178.7 33.4 242.1 275.4 8.9 9............ 53.1 177.3 33.5 243.0 276.5 52.9 177.6 33.5 242.5 276.0 8.3 16............ 53.2 178.2 33] 8 244^4 278.2 52.7 177.1 33.4 243.4 276.8 6.7 23^.......... 53.4 179.0 34.3 245.0 279.3 52.6 174.7 34.0 244.2 278.2 6.4 Mar. lp.......... 53.2 178.3 33.8 245.8 279.6 52.3 176.0 33.8 245.4 279.1 7.0 1 Includes, in addition to currency and demand deposits, savings de­ Note.—For description of revised series and for back data, see pp. 880posits, time deposits open account, and time certificates of deposits other 93 of the November Bulletin. 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 □ MARCH 1972 AGGREGATE RESERVES AND MEMBER BANK DEPOSITS (In billions of dollars) Member bank reserves, S.A.1 Deposits subject to reserve requirements2 Total member bank deposits plus nondeposit S.A. N.S.A. items3 Period Total Non­ Demand Demand borrowed Required Time Time Total and Total and S.A. N.S.A. savings Private U.S. savings Private U.S. Govt. Govt. 1968—Dec.............. *•27.25 *•26.47 26.89 297.6 *•164.2 128.3 *■5.1 301.2 163.8 133.3 4.1 304.6 308.1 1969—Dec.............. *■27.98 26.83 27.74 285.4 150.3 129.8 5.3 288.8 149.7 134.6 4.6 305.4 308.8 1970—Dec............. 29.13 28.76 28.92 319.0 178.8 133.8 6.4 322.8 178.2 138.7 6.0 330.6 334.4 1971—Feb.............. *■29.60 *•29.24 *•29.35 328.1 187.5 135.7 4.9 328.4 187.1 134.3 7.0 336.7 337.0 Mar............. 29.78 *■29.45 *-29.59 332.5 191.7 136.8 4.0 332.2 192.3 135.4 4.5 339.6 339.2 Apr.............. 29.99 29.86 *•29.79 336.9 193.6 137.7 5.6 337.3 193.6 139.0 4.7 342.0 342.4 May............ *■30.33 *•30.11 *•30.12 '340.4 196.0 139.0 5.4 338.4 195.8 135.9 6.7 344.5 342.5 June............ 30.53 30.11 *•30.33 342.3 198.2 139.8 4.3 340.2 197.6 138.2 4.4 346.7 344.7 July............. *■30.64 *•29.91 *•30.47 345.5 199.8 140.6 5.1 344.1 198.9 139.4 5.7 349.8 348.4 Aug............. *■30.74 *•29.98 *•30.57 347.1 200.3 141.0 5.7 344.6 200.8 138.1 5.8 351.0 348.6 Sept............. *•31.07 *•30.56 *•30.91 349.2 202.1 140.5 6.6 348.2 202.7 139.2 6.3 353.3 352.2 Oct.............. *•30.88 *•30.48 *•30.69 349.8 205.2 139.9 4.7 350.2 205.9 139.9 4.3 354.7 355.0 Nov............. 30.97 *•30.54 30.75 352.7 206.4 140.9 5.4 351.6 206.9 141.6 3.1 358.0 357.0 Dec.............. 31.25 31.08 31.10 357.9 210.2 141.5 6.2 362.2 209.7 146.7 5.7 361.9 366.2 1972—Jan............... *•31.77 *•31.68 *•31.56 r360.9 213.7 *■141.0 6.3 *■366.3 213.4 *•146.9 6.0 *•364.9 *•370.3 Feb.............. 31.62 31.58 31.46 363.1 216.4 143.0 3.7 363.5 215.9 141.6 6.0 366.8 367.1 1 Averages of daily figures. Member bank reserve series reflects actual 1968 are not comparable with later data due to the withdrawal from the reserve requirement percentages with no adjustment to eliminate the System on Jan. 2, 1969, of a large member bank. effect of changes in Regulations D and M. Required reserves were in­ 3 Total member bank deposits subject to reserve requirements, plus creased by $660 million effective Apr. 16, 1969, and $400 million, effective Euro-dollar borrowings, bank-related commercial paper, and certain Oct. 16, 1969. Required reserves were reduced by $500 million (net) other nondeposit items. This series for deposits is referred to as “the ad­ effective Oct. 1, 1970. justed bank credit proxy.” 2 Averages of daily figures. Deposits subject to reserve requirements Note.—Due to changes in Regulations M and D, member bank re­ include total time and savings deposits and net demand deposits as defined serves include reserves held against nondeposit funds beginning Oct. 16, by Regulation D. Private demand deposits include all demand deposits 1969. Back data may be obtained from the Banking Section, E)ivision of except those due to the U.S. Govt., less cash items in process of collection Research and Statistics, Board of Governors of the Federal Reserve and demand balances due from domestic commercial banks. Data for System, Washington, D. C. 20551. GROSS LOANS AND INVESTMENTS (In billions of dollars) Seasonally adjusted Not seasonally adjusted Loans1 plus loans sold to bank affiliates 3 Date Securities Securities Total 1,2 Loans1,2 Total i,2 Loans1,2 U.S. Other2 U.S. Other2 S.A. N.S.A. Govt. Govt. 1965—Dec 31......................... 300.1 198.2 57.1 44.8 307.6 203.2 59.5 44.9 1966—Dec 31......................... 316.1 213.9 53.5 48.7 324.0 219.0 56.2 48.8 1967—Dec. 30......................... 352.0 231.3 59.3 61.4 360.8 236.8 62.5 61.5 1968-Dec. 31......................... 390.6 258.2 61.0 71.4 400.4 264.4 64.5 71.5 1969—Dec. 31 4..................... 402.1 279.4 51.5 71.2 412.1 286.1 54.7 71.3 283. 3 290.0 1970—Dec. 31....................... 435.9 292.0 58.0 85.9 446.8 299.0 61.7 86.1 294.9 301.9 1971—Feb. 24....................... 446.1 295.7 60.8 89.6 442.4 292.1 61.4 88.9 298.6 295.0 Mar. 31....................... 449.5 296.5 61.1 91.9 447.7 294.6 61.6 91.5 299.3 297.5 Apr. 28....................... 452.5 298.2 60.7 93.5 450.9 296.7 60.0 94.2 300.9 299.4 May 26....................... 456.1 300.7 60.4 95.1 453.6 300.0 58.8 94.9 303.5 302.8 June 30....................... 461.1 5 301.7 62.8 5 96.6 464.8 5 307.1 60.3 5 97.4 5 304.8 5 310.2 July 28....................... 463.7 304.1 61.6 98.0 463.0 305.6 59.3 98.2 307.0 308.4 Aug. 25....................... 468.4 309.7 60.9 97.8 466.1 309.3 58.7 98.1 312.4 312.0 Sept. 29*..................... 472.4 313.0 59.9 99.5 472.0 313.4 58.7 99.9 316.0 316.4 Oct. 27*..................... 476.5 316.4 59.1 101.0 475.8 314.5 60.0 101.3 319.3 317.4 Nov. 24*..................... 478.4 317.5 58.9 102.0 478.5 316.0 61.1 101.4 320.3 318.8 Dec. 31*..................... 482.9 318.6 60.3 103.9 494.9 326.3 64.6 104.1 321.5 329.2 1972—Jan. 26*..................... 489.8 324.3 59.8 105.7 488.5 321.2 62.8 104.5 327.3 324.2 Feb. 23*..................... 495.0 327.1 61.1 106.8 490.8 322.9 62.0 105.9 330.0 325.8 1 Adjusted to exclude domestic commercial interbank loans. net of valuation reserves as was done previously. For a description of the 2 Beginning June 9, 1966, about $1.1 billion of balances accumulated revision, see Aug. 1969 Bulletin, pp. 642-46. Data shown in this table for payment of personal loans were deducted as a result of a change in beginning January 1959 have been revised to include valuation reserves. Federal Reserve regulations. 5 Beginning June 30, 1971, Farmers Home Administration insured notes Beginning June 30,1966, CCC certificates of interest and Export-Import totaling approximately $700 million are included in “Other securities” Bank portfolio fund participation certificates totaling an estimated rather than in “Loans.” $1 billion are included in “Other securities” rather than “Loans.” Note.—Series revised. For monthly data 1959-70, see Dec. 1971 Bulle­ 3 Includes loans sold outright by commercial banks to own subsidiaries, tin, pp. 974-75. For monthly data, 1948-58, see Aug. 1968 Bulletin, foreign branches, holding companies, and other affiliates. pp. A-94-A-97. For a description of the seasonally adjusted series see 4 Beginning June 30, 1969, data revised to include all bank-premises the following Bulletins: July 1962, pp. 797-802; July 1966, pp. 950-55; subsidiaries and other significant majority-owned domestic subsidiaries; Sept. 1967, pp. 1511-17; and Dec. 1971, pp. 971-73. Data are for last Wed. earlier data include commercial banks only. Also, loans and investments of month except for June 30 and Dec. 31; data are partly or wholly esti­ are now reported gross, without valuation reserves deducted, rather than mated except when June 30 and Dec. 31 are call dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BANKS AND THE MONETARY SYSTEM A 19 CONSOLIDATED CONDITION STATEMENT (In millions of dollars) Assets Liabilities and caDital Total Bank credit assets, Date c c s G S e a a to D r t n o e t c d l i s R d f k i 1 ­ T r s c o e u r i t u n n a e u r g c y a r n t ­ ­ y s d ­ ­ Total Lo n a e 2 n t s Total U.S. s C a T a v o r n i m e n d a g l s . s ury R F se e e c d se u e r r r v i a t e l ies Other3 O r s i e t t c i h 4 e u e s ­ r c T l n a i i a n p a e t o n i b e i t e t t — d a t i s a l l l ­ , c d u e T r a p o r n o e t d a n si l c t y s C c m o a a a n u p n i c e n s i d ­ t c t t a s . l , banks Banks 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—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—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. 29*................. 10,500 7,500 617,000 368,100 131,300 62,200 67,600 1,600 117,500 635,000 567,500 67,600 Oct. 27*................. 10,500 7,600 621,500 368,800 133,700 63,400 67,800 2,500 119,000 639,600 570,800 68,800 Nov. 24*................. 10,500 7,600 625,200 369,500 136,500 64,500 69,500 2,500 119,200 643,300 574,300 69,100 Dec. 29*................. 10,500 7,600 642,900 379,600 141,600 67,900 71,200 2,500 121,700 661,000 598,100 62,900 1972—Jan. 26*................. 10,500 7,700 639,900 378,300 138,700 66,200 69,900 2,500 123,000 658,100 590,100 68,000 Feb. 23*................. 10,000 7,800 639,800 378,900 136,800 65,300 68,900 2,500 124,200 657,600 589,200 68,400 DETAILS OF DEPOSITS AND CURRENCY Money stock Related deposits (not seasonally adjusted) ! Seasonally adjusted 6 Not seasonally adjusted Time U.S. Government Date ! Total o b r u C e a t n n u s c i k r d y ­ s e d j e m u D p a s a o t d e n e s ­ ­ d d it 7 s Total o b r C u e a t n u n s c i r k d y ­ s e d j e u m D p a s a o t d e n e s ­ ­ d d it 7 s 1 Total b m C a e n o r k c m s ia ­ l 8 b M sa a v n u i k t n u s g a s l 9 S P t a S e o v y m s i s t n a ­ g 3 l s n e F e i o g t n r i ­ , o T h c i u r n o a e r g l s a y d h s s ­ ­ s b c a a o a A v n n m i t d k n l g s . s B F a A . n R t k . s 1947—Dec. 31.... 110,500 26,100 84,400 113,597 26,476 87,121 56,411 35,249 17,746 3,416 1,682 1 ,336 1,452 870 1950—Dec. 30.... 114,600 24,600 90,000 117,670 25,398 92,272 59,246 36,314 20,009 2,923 2,518 1 ,293 2,989 668 1967—Dec. 30.... 181,500 39,600 141,900 191,232 41,071 150,161 242,657 182,243 60,414 2,179 1,344 5,508 1,123 1968—Dec. 31.. .. 199,600 42,600 157,000 207,347 43,527 163,820 267,627 202,786 64,841 2,455 695 5,385 703 1969—Dec. 315... 206,800 45,400 161,400 214,689 46,358 168,331 260,992 193,533 67,459 2,683 596 5,273 1 ,312 1970—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—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. 29*. . . 213,800 50,400 163,400 212,400 50,500 161,900 340,700 261,400 79,400 2,400 500 9,500 2,000 Oct. 27*. . . 215,400 51,000 164,400 216,300 50,900 165,400 343,400 263,600 79,800 2,500 500 6,500 1,700 Nov. 24*. .. 215,800 51,100 164,700 219,200 52,500 166,700 345,800 265,500 80,300 2,600 500 4,700 1,400 Dec. 29*... 223,200 51,100 172,100 230,100 52,200 177,800 351,500 270,000 81,600 2,500 500 11,600 2,000 1972—Jan. 26*. .. 216,100 51,800 164,300 218,900 51,100 167,800 355,600 273,900 81,700 2,400 500 9,800 2,900 Feb. 23*... 219,100 52,200 166,900 218,000 51,600 166,400 359,400 277,400 82,100 2,600 400 7,800 1,100 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 lia­ deposits” 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 esti­ of 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 6 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 □ MARCH 1972 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Cash lia­ Bor­ capital ber Class of bank assets 3 bilities row­ ac­ of and date Total Loans and Total3 Demand ings counts banks l U.S. capital De­ Treas­ Other ac­ mand Time Times ury 2 counts4 U.S. Govt. Other All commercial banks: 1941—Dec. 31... 50,746 21,714 21,808 7,225 26,551 79,104 71,283 10,S •82 44,349 15,952 23 7,173 14,278 1945—Dec. 31 .. . 124,019 26,083 90,606 7,331 34,806 160,312 150,227 14,C >65 105.921 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 77,928 451,012 395,008 21,883 1,314 5,234 184,066 182,511 5,777 34,384 13,722 1968—Dec. 31 ... 401,262 265,259 64,466 71,537 83,752 500,657 434,023 24.747 1,211 5,010 199,901 203,154 8,899 37,006 13,679 1969—Dec. 31 421,597 295,547 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—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—Feb. 24... 458,040 307,740 61,430 88,870 82,450 561,810 463,950 25,850 1.990 7,060 188,180 240,870 21,500 43,050 13,700 Mar. 31... 463,500 310.380 61,620 91,500 94.350 580,930 483,470 30,640 1.990 4,520 198,860 247,460 22,130 43.530 13,713 Apr. 28. .. 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 6,790 197.310 256,360 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".. 489,640 331,000 58,740 99,900 88,180 602,070 497,530 27,050 2,500 8,920 197,180 261,880 26,850 45,110 13,753 Oct. 27". . 491,270 329,910 60,020 101,340 95,590 610,880 505,960 28,950 2,610 5,940 204,350 264,110 27,240 45.530 13,768 Nov. 24". . 495,560 333,040 61,140 101,380 95.350 614,570 504,830 28,250 2,600 4,200 203,760 266,020 30,870 45,710 13,776 Dec. 29". . 511,670 343,530 64,550103,590 95,830 632,780 524,890 27,020 2,650 11,120 213,610 270,490 30,960 46,080 13,784 1972—Jan. 26".. 506,410 339,100 62,810 104,500 91,860 622,090 519,020 28,550 2,820 9.240 203,950 274,460 26,510 46,560 13.787 Feb. 23".. 509,540 341,650 61 ,980105.910 95,060 628.400 521,730 31,130 2,850 7.240 202,620 277,890 29,330 47,000 13.787 Member of F.R. System: 1941 _Dec. 31 .. . 43,521 18,021 19,539 5,961 23,113 68,121 61,717 10,385 140 1,709 37,136 12,347 4 5,886 6,619 1945—Dec. 31 .. . 107,183 22,775 78,338 6,070 29.845 138,304 129,670 13,576 64 22,179 69,640 24,210 208 7,589 6,884 1947—Dec. 31 .. . 97,846 32,628 57,914 7,304 32.845 132,060 122,528 12,353 50 1,176 80,609 28,340 54 8,464 6,923 1966—Dec. 31 .. . 263,687 182,802 41,924 38,960 60,738 334,559 291,063 18,788 794 4,432 138,218 128,831 4,618 26,278 6,150 1967—Dec. 30.. . 293,120 196,849 46,956 49,315 68,946 373,584 326,033 20,811 1,169 4.631 151,980 147,442 5,370 28,098 6,071 1968—Dec. 31 .. . 325,086 220,285 47,881 56,920 73,756 412,541 355,414 23,519 1,061 4,309 163,920 162,605 8,458 30,060 5,978 1969—Dec. 31 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—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—Feb. 24... 362,488 248,916 44,840 68,732 72,296 452,887 369,632 24,680 1,744 5,730 150,712 186,766 20,440 34,213 5,754 Mar. 31... 366,723 250,777 45,193 70,753 83,092 469,355 386,692 29,399 1,749 3,726 159,983 191,835 21,107 34,658 5,751 Apr. 28... 368,539 252,040 43,704 72,795 78,152 465,677 382,149 25,278 1,776 6,957 155,728 192,410 22,983 34,799 5,747 May 26... 369,182 253,513 42,601 73,068 73,902 462,599 379,887 23,243 1,838 6,663 153,227 194.916 22,237 34,944 5,742 June 30... 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 75,301 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. .. 385,391 266,575 42,369 76,447 77,361 483,064 394,598 25,829 2,274 7,369 157,000 202,126 25,843 35,827 5.724 Oct. 27... 386,028 264,847 43,586 77,595 83,963 490,047 401,167 27,616 2,385 4,840 162,600 203,726 26,203 36,179 5.725 Nov. 24... 389,468 267,287 44,630 77,551 83,788 492,995 399,678 26,941 2,372 3,317 161,905 205,143 29,776 36,303 5,729 Dec. 29. .. 402,687 276,319 47,130 79,238 84,104 507,884 416,570 25,656 2,418 9,399 170,172 208,925 29,855 36,562 5,728 1972—Jan. 26... 397,951 272,452 45,723 79,776 80,580 498,591 411,462 27,230 2,596 7,643 162,307 211,686 25,429 37,028 5.718 Feb. 23".. 400,338 274,508 45,102 80,728 83,258 503,720 413,339 29,738 2,627 5,931 161,031 214,012 28,227 37,340 5.718 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 7,179 11,972 1,242 7,261 27,982 25,216 4,453 12 267 19,040 1,445 30 2,259 37 1966—Dec. 31... 46,536 35,941 4,920 5,674 14,869 64,424 51,837 6,370 467 1,016 26,535 17,449 1,874 5,298 12 1967—Dec. 30... 52,141 39,059 6,027 7,055 18,797 74,609 60,407 7,238 741 1,084 31,282 20,062 1,880 5,715 12 1968—Dec. 31 .. . 57,047 42,968 5,984 8,094 19,948 81,364 63,900 8,964 622 888 33,351 20,076 2,733 6,137 12 1969—Dec. 31 7. 60,333 48,305 5,048 6,980' 22,349 87,753 62,381 10,349 268 694 36,126 14,944 4,405 6,301 12 1970—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—Feb. 24... 60,791 46,610 5,378 8,803 20,393 86,749 63,848 11,367 919 879 29,352 21,331 5,855 6,510 12 Mar. 31... 59,912 45,457 5,683 8,772: 27,111 93,161 71,345 14,672 846 573 33,114 22,140 5,741 6,723 12 Apr. 28. .. 60,115 45,741 5,316 9,058; 23,718 89,486 67,750 12,261 920 1,392 30,793 22,384 6,285 6,743 12 May 26... 59,029 45,441 5,007 8,581 19,816 84,885 63,973 10,254 846 1,388 28,552 22,933 6,072 6,797 12 June 30... 61,059 47,243 5,116 8,700i 26,200 i 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 8,7691 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 67,392 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 1,013 1,283 29,229 24,637 6,818 7,061 12 Oct. 27... 61,734 47,971 5,088 8,675: 24,405 i 91,671 68,923 13,005 1,086 710 29,561 24,561 6,748 7,20i7 12 Nov. 24... 61,776 47,626 5,582 8,568! 23,026 i 90,162 67,792 12,988 1,196 392 28,785 24,431 6.954 7,257 12 Dec. 29. . . 63,429 49,219 5,231 8,979' 23,043 92,432 70,247 11,618 1,117 1,977 31,106 24,429 7,908 7,180 12 1972—Jan. 26... 62,539 48,337 5,405 8,797 23,684 91,726 71,017 13,443 1.258 1,395 30,660 24,261 5,854 7,253 12 Feb. 23... 61,856 48,221 5,190 8,445i 23,615 91,094 69,674 15,152 1.258 878 28,084 24,302 6,906 7,306 12 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ COMMERCIAL BANKS A 21 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK—Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Securities Total Interbank3 Other Total Num­ Class of bank lia­ Bor­ capital ber and date Cash bilities row­ ac­ of Total Loans assets3 and Demand ings counts banks l U.S. capital Total3 Treas­ Other ac­ De­ Time Times ury 2 counts4 mand U.S. Govt. Other Reserve city member (cont.): 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—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—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 Oct. 27............ 16,526 11,938 1,732 2,856 3,576 21,049 15,933 1,553 228 240 6,386 7,526 2,462 1,669 9 Nov. 24............ 16,651 11,945 1,780 2,926 3,856 21,333 15,364 1,431 219 102 6,097 7,515 2,712 1,649 9 17,032 12,203 1 ,772 3,057 3,601 21,646 16,340 1 ,403 226 463 6,706 7,542 2,838 1 ,661 9 1972—Jan. 26............ 16,614 11,901 1 ,657 3,056 3,488 21,059 15,730 1 ,460 213 378 6,243 7,436 2,673 1,781 9 Feb. 23............ 17,234 12,505 1,576 3,153 3,311 21,489 15,791 1,509 207 267 6,305 7,503 2,935 1,796 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 26,8671 136,626 120,485 9,374 310 1,715 53,288 55,798 2,555 10,032 1,63 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—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—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 Oct. 27............ 139,515 98,621 13,810 27,084 30,995 177,945 143,113 10,006 847 1,963 56,832 73,465 13,732 13,012 156 Nov. 24............ 141,421 100,284 14,203 26,934 32,048 180,956 142,820 9,537 733 1,264 57,068 74,218 16,692 13,012 156 Dec. 29............ 148,089 105,081 15,800 27,208 32,244 187,971 151,249 9,524 851 3,935 60,082 76,857 15,647 13,164 156 1972—Jan. 26............ 145,436 103,311 14,796 27,329 29,154 182,373 147,352 9,306 901 3,057 56,144 77,944 13,528 13,427 156 Feb. 23............ 146,609 104,067 14,768 27,774 30,945 185,420 148,824 9,901 938 2,492 57,121 78,372 14,927 13,463 156 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 2,839 111 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—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—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. 25............ 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............ 166,630 105,263 22,864 38,503 23,519 196,237 170,060 2,782 224 2,730 67,186 97,138 3,146 14,195 5,547 Oct. 27............ 168,253 106,317 22,956 38,980 24,987 199,382 173,198 3,052 224 1,927 69,821 98,174 3,261 14,291 5,548 Nov. 24............ 169,620 107,432 23,065 39,123 24,858 200,544 173,702 2,985 224 1,559 69,955 98,979 3,418 14,385 5,552 Dec. 29............ 174,137 109,816 24,327 39,994 25,216 205,835 178,734 3,111 224 3,024 72,278100,097 3,462 14,557 5,551 1972—Jan. 26............ 173,362 108,903 23,865 40,594 24,254 203,438 177,363 3,021 224 2,813 69,260102,045 3,374 14,567 5,541 Feb. 23 p.......... 174,639 109,715 23,568 41,356 25,387 205,717 179,050 3,176 224 2,294 69,521103,835 3,459 14,775 5,541 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 22 COMMERCIAL BANKS □ MARCH 1972 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 Num­ and FDIC assets 3 bilities row­ capital ber insurance Total Loans and Total3 Demand ings ac­ of l U.S. Other capital De­ Time counts banks Treas­ 2 ac­ mand Time 5 ury counts4 U.S. Govt. Other Insured banks: Total: 1941—Dec. 31.. 49,290 21,259 21,046 6,984 25,788 76,820 69,411 10, 654 1,762 41,298 15,699 10 6,844 13,426 1945—Dec. 31.. 121,809 25,765 88,912 7,131 34,292 157,544 147,775 13,i 883 23,740 80,276 29,876 215 8,671 13,297 1947—Dec. 31.. 114,274 37,583 67,941 8,750 36,926 152,733 141,851 12,615 54 1,325 92,975 34,882 61 9,734 13,398 | 1963—Dec. 20.. 252,579 155,261 62,723 34,594 50,337 310,730 273,657 15,077 443 6,712 140,702 110,723 3,571 25,277 13,284 1964—Dec. 31.. 275,053 174,234 62,499 38,320 59,911 343,876 305,113 17,664 733 6,487 154,043 126,185 2,580 27,377 13,486 1965—Dec. 31.. 303,593 200,109 59,120 44,364 60,327 374,051 330,323 18,149 923 5,508 159,659 146,084 4,325 29,827 13,540 1966—Dec. 31.. 321,473 217,379 55,788 48,307 68,515 401,409 351,438 19,497 881 4,975 166,689 159,396 4,717 31,609 13,533 1967—Dec. 30.. 358,536 235,502 62,094 60,941 77,348 448,878 394,118 21,598 1,258 5,219 182,984 183,060 5,531 33,916 13,510 1968—Dec. 31.. 399,566 264,600 64,028 70,938 83,061 498,071 432,719 24,427 1,155 5,000 198,535 203,602 8,675 36,530 13,481 1969—June 30?. 408,620 283,199 53,723 71,697 87,311 513,960 423,957 24,889 800 5,624 192,357 200,287 14,450 38,321 13.464 Dec. 31.. 419,746 294,638 54,399 70,709 89,090 527,598 434,138 26,858 695 5,038 207,311 194,237 18,024 39,450 13.464 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 National member: 1941—Dec. 31.. 27,571 11,725 12,039 3,806 14,977 43,433 39,458 6,786 1,088 23,262 8,322 4 3,640 5,117 1945—Dec. 31.. 69,312 13,925 51,250 4,137 20,144 90,220 84,939 9,229 14,013 45,473 16,224 78 4,644 5,017 1947—Dec. 31.. 65,280 21,428 38,674 5,178 22,024 88,182 82,023 8,375 35 795 53,541 19,278 45 5,409 5,005 1963—Dec. 20.. 137,447 84,845 33,384 19,218 28,635 170,233 150,823 8,863 146 3,691 76,836 61,288 1,704 13,548 4,615 1964—Dec. 31.. 151,406 96,688 33,405 21,312 34,064 190,289 169,615 10,521 211 3,604 84,534 70,746 1,109 15,048 4,773 1965—Dec. 31.. 176,605 118,537 32,347 25,720 36,880 219,744 193,860 12,064 458 3,284 92,533 85,522 2,627 17,434 4,815 1966—Dec. 31.. 187,251 129,182 30,355 27,713 41,690 235,996 206,456 12,588 437 3,035 96,755 93,642 3,120 18,459 4,799 1967—Dec. 30.. 208,971 139,315 34,3081 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 41,927j 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 10,822 43,879 40,505 3,978! 15 381 27,068 9,062 9 3,055 1,918 1963—Dec. 20.. 72,680 46,866 15,958 9,855 15,760 91,235 78,553 5,655 236 2,295 40,725 29,642 1,795 7,506 1,497 1964—Dec. 31.. 77,091 51,002 15,312 10,777 18,673 98,852 86,108 6,486 453 2,234 44,005 32,931 1,372 7,853 1,452 1965—Dec. 31.. 74,972 51,262 12,645 11,065 15,934 93,640 81,657 5,390 382 1,606 39,598 34,680 1,607 7,492 1,406 1966—Dec. 31.. 77,377 54,560 11,569 11,247 19,049 99,504 85,547 6,200 357 1,397 41,464 36,129 1,498 7,819 1,351 1967—Dec. 30.. 85,128 58,513 12,649 13,966 22,312 111,188 95,637 6,934 516 1,489 45,961 40,736 1,892 8,368 1,313 1968—Dec. 31.. 89,894 61,965 12,581 15,348 22,803 116,885 98,467 8,402 404 1,219 47,498 40,945 2,535 8,536 1,262 1969—June 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 I 1963—Dec. 20.. 42,464 23,550 13,391 5,523 5,942 49,275 44,280 559 61 726 23,140 19,793 72 4,234 7,173 1964—Dec. 31.. 46,567 26,544 13,790 6,233 7,174 54,747 49,389 658 70 649 25,504 22,509 99 4,488 7,262 1965—Dec. 31.. 52,028 30,310 14,137 7,581 7,513 60,679 54,806 695 83 618 27,528 25,882 91 4,912 7,320 1966—Dec. 31.. 56,857 33,636 13,873 9,349 7,777 65,921 59,434 709 87 543 28,471 29,625 99 5,342 7,384 1967—Dec. 30.. 64,449 37,675 15,146 11,629 8,403 74,328 67,107 786 89 588 31,004 34,640 162 5,830 7,440 1968—Dec. 31.. 73,553 43,378 16,155 14,020 9,305 84,605 76,368 908 94 691 34,615: 40,060 217 6,482 7,504 1969—June 307. 78,032 48,358 14,341 15,333 8,696 88,802 78,610 791 78 749 34,070i 42,921 451 7,004 7,528 Dec. 31.. 82,133 51,643 14,565 15,925 10,056 94,453 83,380 1,017 85 924 37,561 43,792 629 7,403 7,595 1970—June 30.. 84,875 54,149 13,924 16,802 9,346 96,794 84,865 894 137 1,083i 35,837 46,913 708: 7,975 7,675 Dec. 31.. 92,399 57,489 16,039 18,871 11,208 106,457 93,998 1,091 141 1,438: 40,005: 51,322 571 8,326 7,735 1971—June 30.. 99,532 61,509 15,953 22,070 10,439 113,058 99,774 989 186> 1,409» 39,908! 57,283 597 8,993 7,811 For notes see p. A-23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ COMMERCIAL BANKS A 23 PRINCIPAL ASSETS AND LIABILITIES AND NUMBER, BY CLASS OF BANK— Continued (Amounts in millions of dollars) Loans and investments Deposits Total assets— Classification by Securities Total Interbank3 Other FRS membership Cash lia­ Bor­ Total Num­ and FDIC assets3 bilities row­ capital ber insurance Total Loa l ns T U re .S as . ­ Oth 2 er ca a a p n c i d t ­ al Total3 m D a e n ­ d Time Demand Tim 5 e ings co a u c n ­ ts ba o n f ks ury counts 4 U.S. Other Govt. Noninsured nonmember: 1941 Dec. 31.......... 1,457 455 761 241 763 2,283 1,872 329 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 17 832 341 93 389 285 1964—Dec. 31.......... 2,312 1,355 483 474 578 3,033 2,057 273 86 23 1,141 534 99 406 274 1965 Dec. 31.......... 2,455 1,549 418 489 572 3,200 2,113 277 85 17 1,121 612 147 434 263 1967 Dec. 30.......... 2,638 1,735 370 533 579 3,404 2,172 285 58 15 1,081 733 246 457 211 1968 Dec. 31.......... 2,901 1,875 429 597 691 3,789 2,519 319 56 10 1,366 767 224 464 197 1969- June 30 7....... 2,809 1,800 321 688 898 3,942 2,556 298 81 15 1,430 731 290 502 209 Dec. 31.......... 2,982 2,041 310 632 895 4,198 2,570 316 41 16 1,559 638 336 528 197 1970 June 30.......... 3,043 2,073 321 650 746 4,140 2,280 321 69 36 1,247 606 331 549 193 Dec. 31.......... 3,079 2,132 304 642 934 4,365 2,570 375 101 40 1,298 756 226 532 184 1971—June 30........ 2,968 2,057 263 648 960 4,356 2,480 360 41 20 1,182 877 250 495 182 Total nonmember: 1941—Dec. 31.......... 7,233 3,696 2,270 1,266 3,431 10,992 9,573 457 5,504 3,613 18 1,288 7,662 1945—Dec. 31.......... 16,849 3,310 12,277 1,262 4,962 22,024 20,571 425 14,101 6,045 11 1,362 7.130 1947—Dec. 31.......... 18,454 5,432 11,318 1,703 4,659 23,334 21,591 439 190 167 13,758 7,036 12 1,596 7,261 1963—Dec. 20.......... 44,035 24,295 13,854 5,885 6,316 51,304 45,743 749 144 743 23,972 20,134 165 4,623 7,458 1964—Dec. 31.......... 48,879 27,899 14,273 6,707 7,752 57,780 51,447 931 156 672 26,645 23,043 198 4,894 7,536 1965—Dec. 31.......... 54,483 31,858 14,555 8,070 8,085 63,879 56,919 972 168 635 28,649 26,495 238 5,345 7,583 1967—Dec. 30.......... 67,087 39,409 15,516 12,162 8,983 77.732 69,279 1,071 147 603 32,085 35,372 408 6,286 7,651 1968—Dec. 31.......... 76,454 45,253 16,585 14,617 9,997 88,394 78,887 1,227 150 701 35,981 40,827 441 6,945 7,701 1969—June 30 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 1,038 8,523 7,868 Dec. 31.......... 95,478 59,621 16,342 19,514 12,143 110,822 96,568 1,466 243 1,478 41,303 52,078 796 8,858 7,919 1971—June 30........ 102,500 63,566 16,216 22,718 11,398 117,414102,254 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 4 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 □ MARCH 1972 LOANS AND INVESTMENTS BY CLASS OF BANK (In millions of dollars) Other loans 1 Investments b C a l n a k s s a o nd f l T o a a o n n t d a s l 1 f F e u r e n a d d l ­ s C m o e m r­ ­ Agri- o p s r u e r c c c F u a h r r o a r i r t y s i i i e n n s g g in f s in ti a T tu n o t c i i o a n l s Real Ot t h o er, U s .S ec . u T ri r t e i a es s u 6 ry S a t n a d te call date i m nv e e n s t t s ­ s e o tc ld .2 , T 3 o , t a 4 l a c i n i n a d ­ l c t a u u l r l - - 5 b T ro o ­ t e a s t ­ e v i d n i i d - - - Other Bills s g lo e o c c v a u t l ­ . O r s it e t i h c e u s e r ­ 5 d tr u ia s l ­ k an er d s ot T h o ers BanksOthers uals3 Total ce a r n t d ifi­ Notes Bonds rities deal­ cates ers Total: 2 1947—Dec. 31. 116,284 38,057 18,1671,660 830 1,220 115 9,393 5,723 94769,221 9,982 6,03453,205 5,276 3,729 1969—Dec. 31 io422,728 9,928286,750108,44310,329 5,739 4,027 2,488 15,06270,02063,2567,388 54,709 59,183 12,158 1970—Dec. 31..461,998 16,241297,897 112,48611,155 6,332 3,536 2,660 15,85572,49265,8077,57461,742 69,637 16,481 1971—June 30.481,27015,663307,969114,36212,226 5,634 3,493 2,84416,95875,77769,1497,52760,254 77,99419,389 AH insured: 1941—Dec. 31.. 49,290 21,259 9,214 1,450 614 662 40 4,773 4,505 21,046 988 3,159 16,899 3,651 3,333 1945—Dec. 31.. 121,809 25,765 9,461 1.314 3,1643,606 49 4,677 2,361 1,132 88,91221,526 16,04551,342 3,873 3,258 1947—Dec. 31.. 114,274 37,583 18,012 1,610 8231,190 114 9,266 5,654 91467,941 9,676 5,918 52,347 5,1293,621 1969—Dec. 31 io419,746 9,693284,945107,68510.314 5,6443,991 2,425 14,89069,66963,008 7,319 54,399 58,84011,869 1970—Dec. 31..458,919 15,942296,064111,54011,141 6,2073,516 2,581 15,71372,30265,556 7,50761,438 69,301 16,174 1971—June 30 478,30215,381306,194113,41112,2115,555 3,480 2,718 16,82575,615 68,9427,43759,991 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 3,090 871 1945—Dec. 31.. 107,183 22,775 8,949 8553,1333,378 47 3,455 1,900 1,057 78,338 19,26014,27144,807 3,254 815 1947—Dec. 31.. 97,846 32,628 16,962 1,046 811 1,065 113 7,130 4,662 83957,914 7,803 4,81545,295 4,1993,105 1969—Dec. 31 io337,613 7,35<16235 639 96,0956,1875,4083,286 2,258 14,03553,20748,3886.776 39,833 47,2277,558 1970—Dec. 31..366,520 12,677' 241,840 97,9546,538 5,963 3,028 2,345 14,68854,60049,8296,89545,399 55,662 10,942 1971—June 30.378,769 12,026248,04098,5737,0945,3333,024 2,496 15,77056,93452,0376.77744,038 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 1,172 26 80 287 27217’, 574 3,910 3,325 10,339 606 629 1947—Dec. 31 20,393 7,179 5,361 545 267 93 111 564 23811,972 1,642 558 9,772 638 604 1969—Dec. 31 io 60,333 802 47,50328.189 3,695 776 1,047 4,547 3,835 3,595 1,807 5,048 6,192 788 1970—Dec. 31. 62,347 774 46,38627.189 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 46,24726,948 3,822 637 1,106 4,210 4,202 3,916 1,385 5,116 7,298 1,401 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. 3U» 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 ,015 346 2,105 2,055 372 1971—June 30. 16,477 612 11,164 6,515 373 245 218 1,465 861 ,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 1 ,508 6,467 295 751 5,421 956 820 1945—Dec. 31 40,108 8,514 3,661 205 4271,503 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 io121,628 3,021 88,18037,701 1,386 8781,300 876 6,006 19,706 17,5692,757 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 17,3223,024 14,700 19,771 3,089 1971—June 30. 137,451 5,010 92,17638,189 1,601 7861,419 893 7,51720,722 17,9293,12014.552 22,4093,304 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 22422,857 3,063 2,108 17,687 2,006 1,262 1969—‘Dec. 31 io141,286 3,318 89,401 23,7624,739 498 947 148 2,263 28,82426,362 1,85821,278 22,5724,718 1970—Dec. 31. 154,568 5,420 94,421 25,6375,052 524 828 239 2,648 30,00527,585 1,90322,586 26,0796,062 1971—June 30 163,782 5,407 98,45226,9225,433 352 723 279 2,577 31,14829,113 1,905 29,6757,614 Nonmember: 1947—Dec. 31.. 18,454 5,432 1,205 614 20 156 2,266 1,061 10911,318 2,179 1,219 7,920 1,073 625 1969—Dec. 31io 85,115 2,572 51,111 12,3484,141 329 741 231 1,028 16,813 14,868 61214,875 11,9564,600 1970—Dec.31.. 95,478 3,564 56,058 14,5324,617 369 507 316 1,168 17,891 15,978 679 13,975 5,538 1971—June 30.102,500 3,638 59,929 15,7895,131 301 468 348 1,187 18,84317,112 749 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.” 6 Beginning with Dec. 31, 1965, components shown at par rather than 3 See table (and notes), Deposits Accumulated for Payment of Personal at book value; they do not add to the total (shown at book value) and are Loans, p. A-32, not entirely comparable with prior figures. See also note 10. For other notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 o COMMERCIAL BANKS A 25 RESERVES AND LIABILITIES BY CLASS OF BANK (In millions of dollars) id deposits Time deposits b c C a a l n l a l k s d s a a o n te f d s B w F e R a r . i n v R e t k h e ­ . s s r C c e a o n n u i c d r n y ­ b m a a w B d n e n i o c a s t k e l t ­ h ­ i s 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 n o t t i e c r 7 ba e F n ig k o n r­ 9 G U o . v S t . . g S l a o o t n c a v d a t t e l . c C c h o a f e e i e f n e r f r c d d i t s k ­ i ’ ­ s, IPC I b n a t n e k r­ G P S U a o o a n . s S v v d t t ­ . a . l S g l a o o t n c a v d a t t e l . IPC3 r B i o n o w g r s ­ ­ c C o a t a u a c p l n ­ i t ­ s etc. ings Total: 3 1947—Dec. 31... 17,796 2,216 10,216 87,123 11,362 1,430 1,343 6,799 2,581 84,987 240 111 866 34,383 65 10,059 1969—Dec. 31 io. 21,449 7,320 20,314 172,079 24,553 2,620 5,054 17,558 11,899 179,413 735 211 13,221 181,443 18,36039,978 1970—Dec. 31... 23,319 7,046 23,136 173,912 27,442 3,166 7,938 17,763 8,540 183,032 1,975 46323,225208,201 19,37542,958 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 51726,221 228,17622,54745,311 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 1,24823,740 5,098 2,585 72,593 70 103 496 29,277 215 8,671 1947—Dec. 31... 17,796 2,145 9,736 85,751 11,236 1,379 1,325 6,692 2,559 83,723 54 111 826 33,946 61 9,734 1969—Dec. 31 io. 21,449 7,292 19,528 170,280 24,386 2,471 5,038 17,434 11,476 178,401 695 211 13,166 180,860 18,02439,450 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 46223,150207,519 19,14942,427 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 51726,132227,38722,29744,816 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 1,24322,179 4,240 2,450 62,950 64 99 399 23,712 208 7,589 1947—Dec. 31... 17,797 1,672 6,270 73,528 10,978 1,375 1,176 5,504 2,401 72,704 50 105 693 27,542 54 8,464 1969—Dec. 31 io. 21,449 5,676 11,931 133,435 23,441 2,399 13,274 10,483 145,992 609 186 9,951 140,308 17,39532,047 1970—Dec. 31... 23,319 5,445 13,744 133,169 26,260 2,882 13,250 7,309 147,473 1,733 406 18,406160,99818,57834,100 1971—June 30.. 24,066 5,870 12,971 127,670 27,605 2,360 12,953 10,654 142,220 1,980 46220,534 175,75721,70035,822 New York Citv: 1941—Dec.'31... 5,105 93 141 10,761 3,595 607 866 319 450 11,282 6 29 778 1,648 1945—Dec. 31... 4,015 111 78 15,065 3,535 1,105 6,940 237 1,338 15,712 17 10 20 1,206 195 2,120 1947—Dec. 31... 4,639 151 70 16,653 3,236 1,217 267 290 1,105 17,646 12 12 14 1,418 30 2,259 1969—Dec. 31 *<>. 4,358 463 455 21,316 8,708 1,641 694 1,168 6,605 28,354 268 45 207 14,6924,405 6,301 1970—Dec. 31... 4,683 436 1,308 19,770 10,283 2,225 1,039 1,171 3,286 27,779 956 71 1,464 18,9134,500 6,486 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 21,5724,531 6,860 City of Chicago: 1941—Dec. 31... 1,021 43 298 2,215 1,027 127 233 34 2,152 476 288 1945—Dec. 31 ... 942 36 200 3,153 1,292 1,552 237 66 3,160 719 377 1947—Dec. 31... 1,070 30 175 3,737 1,196 72 285 63 3,853 2 9 902 426 1969—Dec. 3110. 869 123 150 5,221 1,581 175 268 229 6,273 15 1 216 4,409 1,290 1,517 1970—Dec. 31... 1,148 126 160 5,120 1,853 282 240 210 6,213 49 568 5,549 1,851 1,586 1971—June 30.. 991 126 247 5,044 1,439 318 352 211 6,084 85 3 741 6,3532,359 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. 31 io. 9,044 1,787 3,456 44,169 10,072 590 1 ,575 3,934 1,928 53,062 242 86 4,609 50,4399,881 11,464 1970—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 62,31212,15312,826 Country: 1941—Dec. 31... 2,210 526 3,216 9,661 790 225 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 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 1,049 432 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 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 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 2,513 8,095 1,956 58,691 223 143 9,033 85,521 2,656 14,499 Nonmember:3 1947—Dec. 31... 544 3,947 13,595 385 167 1,295 180 12,284 190 6 172 6,858 12 1,596 1969—Dec. 31 io. 1,644 8,383 38,644 1,112 222 940 4,284 1 ,416 33,420 126 25 3,269 41,135 965 7,931 1970—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 * Through 1960 demand deposits other than interbank and U.S. banks in U.S. possessions were included through 1968 and then excluded. Govt., less cash items in process of collection; beginning with 1961, For the period June 1941—June 1962 member banks include mutual demand deposits other than domestic commercial interbank and U.S. savings banks as follows: three before Jan. 1960, two through Dec. 1960, Govt., less cash items in process of collection. and one through June 1962. Those banks are not included in all insured or 9 For reclassification of certain deposits in 1961, see note 6, p. 589, total banks. May 1964 Bulletin. A small noninsured member bank engaged exclusively in trust business i° 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 □ MARCH 1972 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 financial Wednesday and Com­ To brokers To institutions invest­ To mer­ and dealers others ments com­ To cial Agri­ Total mer­ U.S. others Total and cul­ cial Treas­ Other indus­ tural Pers. banks ury se­ trial U.S. U.S. and se­ curi­ Treas­ Other Treas­ Other sales curi­ ties ury secs. ury secs. finan. Other ties secs. secs. COS., etc. Large banks— Total 1971 Feb. 3............. 258,935 9,690 7,639 1,502 328 221 174,995 80,260 1,409 3,428 102 2,331 6,980 6,010 10............. 259,230 10,252 7,858 1,956 355 83 174,697 80,306 2,011 1,593 3,332 102 2,330 6,622 5,995 17.............. 256,506 7,804 7,071 330 338 65 174,810 80,715 2,032 770 3,468 101 2,315 6,706 6,014 24............. 257,126 9,012 7,453 1,194 342 23 174,502 80,760 2,023 1,170 3,267 105 2,324 6,386 6,019 1972 Jan. 5............... 285,934 12,941 11,695 881 170 195 191,436 83,262 916 5,067 157 2,475 6,239 7,976 12............... 282,712 11,152 9,912 730 254 256 190,566 82,802 914 4,829 152 2,494 6,204 7,965 19............. 280,615 10,335 9,152 764 248 171 190,070 82,579 866 4,933 156 2,468 6,164 7,915 26............... 279,671 10,513 9,263 841 246 163 189,027 81,760 880 5,021 161 2,484 6,075 7,789 Feb. 2*............ 281,037 10,718 9,633 723 227 135 189,771 82,047 1,106 5,093 161 2,484 6,030 7,801 9 v............ 280,464 10,958 10,128 515 207 108 189,478 82,082 964 4,926 163 2,495 6,121 7,843 16*............ 281,544 11,625 10,995 386 177 67 190,115 82,583 624 5,223 179 2,509 6,184 7,929 23*............ 281,250 10,496 9,568 582 238 108 190,667 82,494 797 5,358 182 2,497 6,196 7,967 New York City 1971 Feb. 3.............. 58,024 1,671 1,519 107 42,490 25,412 1,146 2,186 12 619 2,132 1,406 10.............. 57,289 1,317 1,201 44 42,468 25,468 1,371 2,137 13 615 1,957 1,399 17.............. 56,408 1,048 1,001 17 42,452 25,658 671 2,223 13 616 2,134 1,427 24.............. 56,986 1,693 1,588 15 42,344 25,754 1,000 2,080 16 614 1,936 1,468 1972 Jan. 5............... 59,128 1,158 1,120 44,442 25,350 694 3,384 48 609 1,650 1,731 12............... 58,868 1,384 1,280 44,191 25,236 745 3,227 42 604 1,695 1,795 19............... 58,486 1,115 1,043 44,011 25,196 672 3,276 45 595 1,717 1,740 26............... 58,802 1,663 1,604 43,706 24,882 677 3,426 48 602 1,704 1,737 Feb. 2*............. 59,227 1,340 1,319 44,309 25,067 923 3,382 48 607 1,698 1,779 9* 58,440 980 936 44,155 25,158 800 3,266 49 608 1,779 1,803 16*!’.’.!!!. 58,493 1,492 1,437 48 44,311 25,324 490 3,431 49 619 1,819 1,850 23*............ 58,202 669 638 44,610 25,107 650 3,575 52 611 1,923 1,892 Outside New York City 1971 Feb. 3............. 200,911 8,019 6,120 1,457 328 114 132,505 54,848 1,994 263 1,242 90 1,712 4,848 4,604 10.............. 201,941 8,935 6,657 1,886 353 39 132,229 54,838 1,996 222 1,195 89 1,715 4,665 4,596 17.............. 200,098 6,756 6,070 300 338 48 132,358 55,057 2,017 99 1,245 88 1,699 4,572 4,587 24............. 200,140 7,319 5,865 1,104 342 132,158 55,006 2, 170 1,187 89 1,710 4,450 4,551 1972 Jan. 5............... 226,806 11,783 10,575 881 141 186 146,994 57,912 2.294 222 1,683 109 1,866 4,589 6,245 12.............. 223,844 9,768 8,632 720 230 186 146,375 57,566 2.287 169 1,602 110 1,890 4,509 6,170 19............. 222,129 9,220 8,109 749 224 138 146,059 57,383 2,278 194 1,657 111 1,873 4,447 6,175 26............. 220,869 8,850 7,659 841 225 125 145,321 56,878 2.288 203 1,595 113 1,882 4,371 6,052 Feb. 2*............ 221,810 9,378 8,314 723 227 114 145,462 56,980 2,287 183 1,711 113 1,877 4,332 6,022 9 v .......... 222,024 9,978 9,192 515 207 64 145,323 56,924 2.294 164 1,660 114 1,887 4,342 6,040 16*!.......... 223,051 10,133 9,558 338 177 60 145,804 57,259 2,291 134 1,792 130 1,890 4,365 6,079 23*............ 223,048 9,827 8,930 582 238 77 146,057 57,387 2,307 147 1,783 130 1,886 4,273 6,075 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ WEEKLY REPORTING BANKS A 27 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) U.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts.2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic Large banks— Total 1971 34,278 457 1,465 21,703 788 13,774 28,576 6,267 4,722 14,840 2,747 ......................................Feb. 3 34,297 465 1,460 21,633 795 13.756 28,259 5,868 4,717 14,954 2,720 ................................................10 34,369 534 1,485 21,579 777 13,945 27,762 5,425 3,033 15,007 4,297 ................................................17 34,422 462 1,469 21,567 772 13.756 27,593 5,232 2,994 15,221 4,146................................................24 1972 38,520 918 2,929 24,228 894 15,533 28,968 4,368 3,890 16,583 4,127 .............................Jan. 5 38,647 874 2,848 24,187 924 15,411 28,148 3,675 3,948 16,452 4,073 .......................................12 38,768 755 2,859 24,143 887 15,272 27,843 3,873 3,893 16,235 3,842 .......................................19 38,849 811 2,671 24,167 912 15,132 27,821 3,877 3,879 16,230 3,835 .......................................26 38,887 816 2,609 24,182 910 15,330 27,881 3,909 4,005 16,218 3,749 .............................Feb. 2p 38,945 845 2,654 24,125 905 15,090 27,497 3,473 4,026 16,218 3,780 ....................................... 9 p 39,056 837 2,527 24,087 886 15,174 27,156 3,222 4,547 15,658 3,729 .......................................16p 39,135 785 2,596 24,077 910 15,340 27,455 3,597 4,605 15,554 3,699 .......................................23 p New York City 1971 3,527 145 815 1,899 495 2,680 5,790 1,491 903 2,969 427 .............................Feb. 3 3,525 146 800 1,860 505 2,657 5,548 1,242 889 2,985 432 .......................................10 3,546 223 824 1,859 491 2,752 4,972 1,073 383 2,880 636 .......................................17 3,552 145 831 1,857 494 2,582 5,062 1,115 376 2,984 587 ......................................24 1972 4,042 390 1,227 1,951 567 2,771 5,231 712 702 3,130 687 .............................Jan. 5 4,074 341 1,155 1,951 557 2.741 4,956 586 701 3,071 598 .......................................12 4,089 253 1,210 1,932 566 2,693 5,069 901 670 3.014 484 .......................................19 4,117 274 1,095 1,943 543 2,631 5,193 1,011 684 3.015 483 .......................................26 4,126 286 1,085 1,940 542 2,798 5,285 955 855 3,045 430 .............................Feb. 2p 4,130 318 1,144 1,943 549 2,582 5,097 711 839 3,073 474 ...................................... 9 p 4,156 330 1,066 1,926 544 2,681 4,731 621 969 2,683 458 .......................................16 p 4,167 234 1,125 1,928 579 2.741 5,012 893 990 2,708 421 .......................................23* Outside New York City 1971 30,751 312 650 19,804 293 11,094 22,786 4,776 3,819 11,871 2,320 .............................Feb. 3 30,772 319 660 19,773 290 11,099 22,711 4,626 3,828 11,969 2,288 .......................................10 30,823 311 661 19,720 286 11,193 22,790 4,352 2,650 12,127 3,661 .......................................17 30,870 317 638 19,710 278 11,174 22,531 4,117 2,618 12,237 3,559 .......................................24 1972 34,478 528 1,702 22,277 327 12,762 23,737 3,656 3,188 13,453 3,440 .............................Jan. 5 34,573 533 1,693 22,236 367 12,670 23,192 3,089 3,247 13,381 3,475 .......................................12 34,679 502 1,649 22,211 321 12,579 22,774 2,972 3,223 13,221 3,358 .......................................19 34,732 537 1,576 22,224 369 12,501 22,628 2,866 3,195 13,215 3,352 .......................................26 34,761 530 1,524 22,242 368 12,532 22,596 2,954 3,150 13,173 3,319 .............................Feb. 2p 34,815 527 1,510 22,182 356 12,508 22,400 2,762 3,187 13,145 3,306 . . . . . .9 p 34,900 507 1,461 22,161 342 12,493 22,425 2,601 3,578 12,975 3,271 ......................................16 p 34,968 551 1,471 22,149 331 12,599 22,443 2,704 3,615 12,846 3,278 .......................................23 p For notes see p. A-30, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 28 WEEKLY REPORTING BANKS □ MARCH 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants3 other partici­ others pation4 Large banks— Total 1971 Feb. 45,674 6,486 32,919 1 .201 5,068 31,869 17,978 3,202 6,365 724 14,894 333,967 46,022 6,688 33,044 1,225 5,065 30,801 16,105 3,381 7,027 723 14,911 332,178 46,130 6,838 32,972 1,229 5,091 36,933 21,808 3,454 7,326 732 14,763 341,522 46,019 6,850 32,981 1,150 5,038 29,520 17,212 3,529 6,416 733 14,497 329,033 1972 Jan. 5.. 52,589 8,483 36,604 1,608 5,894 33,802 19,747 3,744 7,578 826 16,191 367,822 12.. 52.846 8,489 37,024 1,574 5,759 32,925 20,438 3,959 7,345 885 15,986 364,250 19.. 52,367 8,201 36,813 1,560 5,793 34,370 21,173 3,795 7,333 890 15,762 363,938 26.. 52,310 8,242 36,664 1,548 5,856 33,094 19,897 3,796 6,902 923 15,723 360,006 2 p. 52,667 8,489 36,837 1,533 5,808 32,493 19,477 3,488 7,043 937 16,294 360,769 9 p. 52,531 8,438 36,703 1,546 5,844 29,959 19,413 3,488 8,862 933 16,021 359,140 16 p. 52,648 8,408 36,714 1,542 5,984 33,385 21,013 3,519 8,658 933 15,786 364,838 23p. 52,632 8,412 36,667 1.516 6,037 32,783 19,509 3,742 9,399 933 15,881 363,497 New York City 1971 Feb. 8,073 1,489 5,239 134 1,211 14,437 4,359 430 1,128 340 5,315 84.033 7,956 1,375 5,342 111 1,128 15,461 4,642 446 1,546 341 5,308 85.033 7,936 1,440 5,273 100 1,123 17,251 6,112 435 1,612 343 5,314 87,475 7,887 1,431 5,241 88 1,127 13,695 4,431 423 1,185 345 5,224 82,289 1972 Jan. 5.. 8,297 1,529 5,448 307 1,013 13,314 5,881 470 1,494 329 5,372 85,988 12.. 8,337 1,593 5,547 274 923 13,971 5,682 474 1,663 387 5,298 86,343 19.. 8,291 1,552 5,519 292 928 15,807 5,988 452 1,611 389 5,174 87,907 26.. 8,240 1,623 5,376 293 948 16,514 4,635 442 1,380 424 4,979 87,176 Feb. Ip. 8,293 1,659 5,412 285 937 14,133 4,926 433 1,384 425 5,114 85,642 9 p. 8,208 1,602 5,407 296 903 13,812 4,969 428 3,543 425 5,077 86,694 16 p. 7,959 1,572 5,248 278 861 14,426 5,534 426 3,193 424 4,972 87,468 23 p. 7,911 1,619 5,164 262 866 14,008 4,867 435 3,652 424 5,092 86,680 Outside New York City Feb. 3. 37,601 4,997 27,680 1,067 3,857 17,432 13,619 2,772 5,237 384 9,579 249,934 10. 38,066 5,313 27,702 1,114 3,937 15,340 11,463 2,935 5,481 382 9,603 247,145 17. 38,194 5,398 27,699 1,129 3,968 19,682 15,696 3,019 5,714 389 9,449 254,047 24. 38,132 5,419 27,740 1,062 3,911 15,825 12,781 3,106 5,231 388 9,273 246,744 1972 Jan. 5. 44,292 6,594 31,156 1,301 4,881 20,488 13,866 3,274 6,084 497 10,819 281,834 12. 44,509 6,896 31,477 1,300 4,836 18,954 14,756 3,485 5,682 498 10,688 277,907 19. 44,076 6,649 31,294 1,268 4,865 18,563 15,185 3,343 5,722 501 10,588 276,031 26. 44,070 6,619 31,288 1,255 4,908 16,580 15,262 3,354 5,522 499 10,744 272,830 Feb. 2 p. 44,374 6,830 31,425 1,248 4,871 18,360 14,551 3,055 5,659 512 11,180 275,127 9 p. 44,323 6,836 31,296 1,250 4,941 16,147 14,444 3,060 5,319 508 10,944 272,446 16 p. 44,689 6,836 31,466 1,264 5,123 18,959 15,479 3,093 5,465 509 10,814 277,370 23*. 44,721 6,793 31,503 1,254 5,171 18,775 14,642 3,307 5,747 509 10,789 276,817 For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ WEEKLY REPORTING BANKS A 29 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Deposits Demand Time and savings Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Mutual Com­ Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc. 2 cial checks ings sions banks Large banks— Total 1971 141,118 94,417 7,179 6,766 21,460 700 789 2,332 7,475 123,599 49,455 53,719 14,159 1 ,564 4,253 .............Feb. 3 137,735 93,071 6,642 4,893 21,926 663 799 2,380 7,361 124,539 49,792 54,249 14,332 1,573 4,129 ........................10 145,511 98,303 7,045 5,246 22,949 735 836 2,505 7,892 124,737 50,140 54,389 14,164 1,568 3,974 ........................17 135,248 93,728 6,483 4,332 20,178 608 796 2,319 6,804 125,800 50,458 54,864 14,506 1,541 3,930 ........................24 1972 152,453 106,524 7,083 4,120 22,819 834 764 2,549 7,760 141,316 55,190 61,055 17,483 2,140 4,980 ..............Jan. 5 148,690104,767 6,761 3,443 22,270 798 750 2,495 7,406 142,098 55,388 61,442 17,565 2,282 4,988 ........................12 149,096 103,490 6,500 4,584 21,816 663 756 2,454 8,833 142,432 55,605 61,573 17,549 2,287 4,930 ........................19 146,780 99,505 6,492 5,854 22,417 688 701 2,411 8,712 142,834 55,719 61,718 17,634 2,286 4,987 ........................26 146,564 99,963 7,714 4,531 22,211 739 716 2,488 8,202 142,532 55,869 61,371 17,528 2,262 4,993 .............Feb. 2 * 143,520 97,979 6,436 4,765 23,783 687 666 2,414 6,790 142,934 56,032 61,450 17,600 2,328 5,038 ........................ 9 p 145,910101,714 6,403 3,193 23,677 686 690 2,325 7,222 143,205 56,218 61,578 17,536 2,318 5,060 ........................16* 146,174100,311 6,323 4,471 24,809 643 753 2,527 6,337 144,122 56,422 62,052 17,709 2,313 5,131 ........................23* New York City 1971 42,251 22,073 926 1,850 9,817 386 644 1,729 4,826 19,724 4,710 10,619 1,050 875 2,335 .............Feb. 3 42,146 22,228 529 1,079 10,611 361 642 1,742 4,954 19,971 4,748 10,938 1,032 858 2,262 ........................10 44,059 23,223 771 1,115 10,654 388 677 1,812 5,419 19,955 4,795 10,983 1,027 855 2,162 ........................17 40,030 22,375 550 850 9,304 320 623 1,653 4,355 20,290 4,830 11,302 1,020 856 2,149 ........................24 1972 41,398 23,648 637 872 9,308 485 617 1 ,721 4,110 23,301 5,367 12,385 1,583 1,073 2,774 .............Jan. 5 41,344 22,927 697 789 10,050 461 587 1,730 4,103 23,588 5,429 12,550 1,587 1,174 2,758 ........................12 43,214 23,597 659 978 9,877 349 607 1 ,702 5,445 23,609 5,464 12,552 1,593 1,200 2,716 ........................19 43,811 22,217 585 1,345 11,245 388 545 1,689 5,797 23,620 5,481 12,526 1,631 1,196 2,698 ........................26 41,383 21,811 1,173 823 9,880 399 567 1,764 4,966 23,499 5,502 12,333 1,679 1,178 2,695 .............Feb. 2* 42,170 21,995 386 1,007 12,236 370 526 1,695 3,955 23,528 5,532 12,273 1,709 1,209 2,713 ........................ 9* 42,512 23,153 405 548 11,723 358 538 1,625 4,162 23,524 5,562 12,283 1,650 1,196 2,736 ........................16* 42,538 22,237 388 843 12,957 332 605 1 ,736 3,440 23,780 5,600 12,443 1 ,674 1 ,194 2,772 ........................23* Outside New York City 1971 98,867 72,344 6,253 4,916 11,643 314 145 603 2,649 103,875 44,745 43,100 13,109 689 1,918 .............Feb. 3 95,589 70,843 6,113 3,814 11,315 302 157 638 2,407 104,568 45,044 43,311 13,300 715 1,867 ........................10 101,452 75,080 6,274 4,131 12,295 347 159 693 2,473 104,782 45,345 43,406 13,137 713 1,812 ........................17 95,218 71,353 5,933 3,482 10,874 288 173 666 2,449 105,510 45,628 43,562 13,486 685 1,781 ........................24 1972 111,055 82,876 6,446 3,248 13,511 349 147 828 3,650 118,015 49,823 48,670 15,900 1,067 2,206 .............Jan. 5 107,346 81,840 6,064 2,654 12,220 337 163 765 3,303 118,510 49,959 48,892 15,978 1,108 2,230 ........................12 105,882 79,893 5,841 3,606 11,939 314 149 752 3,388 118,823 50,141 49,021 15,956 1,087 2,214 ........................19 102,969 77,288 5,907 4,509 11,172 300 156 722 2,915 119,214 50,238 49,192 16,003 1,090 2,289 ........................26 105,181 78,152 6,541 3,708 12,331 340 149 724 3,236 119,033 50,367 49,038 15,849 1,084 2,298 .............Feb. 2* 101,350 75,984 6,050 3,758 11,547 317 140 719 2,835 119,406 50,500 49,177 15,891 1,119 2,325 ........................ 9* 103,398 78,561 5,998 2,645 11,954 328 152 700 3,060 119,681 50,656 49,295 15,886 1,122 2,324 ........................16 103,636 78,074 5,935 3,628 11,852 311 148 791 2,897 120,342 50,822 49,609 16,035 1,119 2,359 ........................23* For notes see p. A-30. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 30 WEEKLY REPORTING BANKS □ MARCH 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS— Continued (In millions of dollars) Borrowings Reserves Memoranda from— for— Large negotiable Fed­ Total time CD’s Gross eral Other Total loans included in time liabili­ Wednesday funds liabili­ capital Total and De­ and savings deposits i1 ties of pur­ F.R. ties Secur­ ac­ loans invest­ mand banks chased, Banks Others etc.8 Loans ities counts (gross) ments deposits to etc.7 ad­ (gross) ad­ Issued Issued their justed9 ad­ justed i o Total to to foreign justed9 IPC’s others bran­ ches Large banks— Total 1971 Feb. 3...................... 19,044 218 1,034 19,940 4.070 24,865 176,589 250,839 81,023 26,925 17,427 9,498 6,432 10...................... 19,049 236 968 20,644 4.071 24,857 176,626 250,907 80,115 27,343 17,768 9,575 6,234 17...................... 19,891 1,499 964 19,934 4.069 24,836 175,009 248,901 80,383 27,146 17,715 9,431 5,871 24...................... 18,037 227 933 19,770 4.070 24,868 175,599 249,211 81,218 27,422 17,936 9,486 5,667 1972 Jan. 5...................... 27,085 1,052 14,857 4,072 26,895 191,764 273,321 91,712 33,316 20,637 12,679 1,208 12...................... 26,208 1,071 15,005 4.097 27,002 190,932 271,926 90,052 33,715 20,947 12,768 1,721 19...................... 24,752 1,046 15,288 4.098 27,150 190,498 270,708 88,326 33,744 21,027 12,717 1,568 26...................... 22,795 1,034 15,163 4,103 27,221 189,466 269,597 85,415 33,851 21,032 12,819 1,419 Feb. 2 p................... 23,653 2 1,062 15,399 4,106 27,366 190,040 270,588 87,329 33,356 20,576 12,780 1,301 9 p.................... 24,856 155 1.087 15,008 4.119 27,385 189,463 269,491 85,013 33,465 20,507 12,958 1,062 16 p.................... 27,302 1.088 15,781 4.120 27,348 189,908 269,712 85,655 33,436 20,525 12,911 1,000 23 p.................... 25,483 1,095 15,061 4,122 27,364 190,810 270,897 84,111 34,012 20,861 13,151 1,062 New York City 1971 Feb. 3...................... 5,090 116 9,413 1,210 6,229 42,497 56,360 16,147 8,063 5,716 2,347 4,141 10...................... 5,698 83 9,704 1.209 6,222 42,438 55,942 14,995 8,306 6,022 2,284 3,866 1 7 6,293 499 84 9,153 1.210 6,222 42,276 55,184 15,039 8,310 6,058 2,252 3,776 2 4 5,573 83 8,893 1,214 6,206 42,304 55,253 16,181 8,514 6,295 2,219 3,449 1972 Jan. 5...................... 7,009 210 5,990 1,171 6.909 44,090 57,618 17,904 10,929 7,165 3,764 822 12...................... 6,877 193 6,247 1.189 6,905 43,954 57,247 16,534 11,220 7,351 3,869 1,195 19...................... 6,651 178 6,190 1.190 6,875 43,830 57,190 16,552 11,306 7,441 3,865 962 26...................... 5,347 177 6,121 1.190 6.910 43,491 56,924 14,707 11,294 7,410 3,884 1,042 Feb. 2p.................... 6,283 169 6,130 1,199 6,979 44,044 57,622 16,547 11,066 7,164 3,902 947 9 p.................... 6,564 220 5,881 1,202 6,974 43,881 57,186 15,115 11,100 7,098 4,002 739 16 p.................... 7,161 245 5,857 1,201 6,968 44,036 56,726 15,815 11,178 7,186 3,992 616 23 p.................... 6,197 280 5,722 1,204 6,959 44,407 57,330 14,730 11,374 7,337 4,037 702 Outside New York City 1971 Feb. 3...................... 13,954 218 918 10,527 2,860 18,636 134,092 194,479 64,876 18,862 11,711 7,151 2,291 10...................... 13,351 236 885 10,940 2,862 18,635 134,188 194,965 65,120 19,037 11,746 7,291 2,368 1 7 13,598 1,000 880 10,781 2,859 18,614 132,733 193,717 65,344 18,836 11,657 7,179 2,095 2 4 12,464 227 850 10,877 2,856 18,662 133,295 193,958 65,037 18,908 11,641 7,267 2,218 1972 Jan. 5...................... 20,076 842 8,867 2,901 19,986 147,674 215,703 73,808 22,387 13,472 8,915 386 12...................... 19,331 878 8,758 2.908 20,097 146,978 214,679 73,518 22,495 13,596 8,899 526 19...................... 18,101 868 9,098 2.908 20,275 146,668 213,518 71,774 22,438 13,586 8,852 606 26...................... 17,448 857 9,042 2,913 20,311 145,975 212,673 70,708 22,557 13,622 8,935 377 Feb. 2p.................... 17,370 893 9,269 2,907 20,387 145,996 212,966 70,782 22,290 13,412 8,878 354 9 p.................... 18,292 867 9,127 2.917 20,411 145,582 212,305 69,898 22,365 13,409 8,956 323 16 p.................... 20,141 843 9,924 2,919 20,380 145,872 212,986 69,840 22,258 13,339 8,919 384 23p.................... 19,286 815 9,339 2.918 20,405 146,403 213,567 69,381 22,638 13,524 9,114 360 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. * Federal agencies only. i°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

MARCH 1972 □ BUSINESS LOANS OF BANKS A 31 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during Industry 1972 1972 1971 1971 1971 Feb. Feb. Feb. Feb. Jan. Feb. r Jan.r Dec.r IV r III' Ilr 2ndr 1st 23 16 9 2 26 half half Durable goods manufacturing: Primary metals................................. 2,027 2,020 2,013 2,036 1,975 32 -14 -46 -162 -120 -25 -282 145 Machinery......................................... 4,104 4,187 4,121 4,077 4,182 -78 -198 -57 -600 -231 34 -831 -218 Transportation equipment.............. 2,695 2,658 2,570 2,609 2,566 129 -96 10 -101 24 -99 -77 -190 Other fabricated metal products. .. 1,640 1,641 1,637 1,629 1,615 25 -101 -2 -259 -130 132 -389 197 Other durable goods........................ 2,520 2,520 2,495 2,444 2,443 77 -52 -130 -328 11 112 -317 258 Nondurable goods manufacturing: Food, liquor, and tobacco.............. 2,805 2,777 2,801 2,829 2,793 12 -100 61 205 293 -166 498 -709 Textiles, apparel, and leather.......... 2,321 2,297 2,235 2,214 2,181 140 -112 -142 -273 -31 115 -304 279 Petroleum refining........................... 1,135 1 ,127 1,149 1,151 1 ,129 6 -45 91 56 -4 -61 52 -404 Chemicals and rubber..................... 2,146 2,152 2,118 2,120 2,091 55 -163 -92 -437 -155 33 -592 166 Other nondurable goods................. 1,694 1,702 1,687 1,690 1,698 -4 -124 27 -96 60 -31 -36 -140 Mining, including crude petroleum and natural gas........................... 3,604 3,607 3,632 3,669 3,670 -66 -137 17 -17 204 -274 187 -383 Trade: Commodity dealers................. 1 ,476 1,543 1,628 1,652 1,630 -154 -46 165 460 72 -174 532 -235 Other wholesale....................... 4,315 4,282 4,336 4,339 4,372 -57 -61 124 132 392 207 524 208 Retail........................................ 4,162 4,128 4,034 4,011 4,077 85 -45 -497 -340 81 172 -259 336 Transportation..................................... 5,573 5,604 5,561 5,557 5,558 15 -88 -22 -78 -246 -308 -324 -30 Communication................................... 1,341 1,356 1,349 1,360 1 ,326 15 12 -51 -249 24 184 -225 231 Other public utilities............................ 2,636 2,684 2,687 2,714 2,629 7 -97 45 176 349 182 525 -147 Construction......................................... 3,935 3,947 3,890 3,837 3,741 194 -76 45 77 106 54 183 82 Services................................................. 8,022 8,018 7,905 7,934 7,911 111 37 227 276 13 378 289 187 All other domestic loans..................... 5,738 5,723 5,712 5,651 5,614 124 -40 238 305 305 296 610 118 Bankers’ acceptances........................... 1,886 1,915 1,901 1,921 1,928 -42 -366 484 696 462 -389 1 ,158 -455 Foreign commercial and industrial loans.............................................. 3,187 3,221 3,229 3,215 3,215 -28 -10 246 254 324 102 578 238 Total classified loans........................... 68,962 69,109 68,690 68,659 68,364 598 -1,922 741 -303 1 ,803 474 1 ,500 -566 Total commercial and industrial loans. 82,494 82,583 82,082 82,047 81,760 734 -2,010 1,208 335 1 ,279 994 1,614 504 See Note to table below. "TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) Outstanding Net change during— 1972 1971 1971 1971 Industry Feb. Jan. Dec. Nov. Oct. Sept. Aug. July June IV III IE I 2nd 23 26 29 24 27 29 25 28 30 Half Durable goods manufactur­ ing: Primary metals................... 1,346 1,315 1,362 1,406 1,496 1,524 1,481 1 ,534 1,586 -162 -62 -43 102 -224 Machinery.......................... 2,092 2,179 2,285 2,396 2,478 2,489 2,505 2,511 2,536 -204 -47 -52 -93 -251 Transportation equipment. 1,627 1,605 1,620 1,592 1,626 1,689 1,582 1,552 1,559 -69 130 -54 -20 61 Other fabricated metal products.......................... 707 699 713 707 744 775 804 802 814 -62 -39 82 -10 -101 Other durable goods.......... 1,144 1,117 1,135 1,162 1,203 1,214 1,269 1,239 1,233 -79 -19 16 128 -98 Nondurable goods manufac­ turing : Food, liquor, and tobacco. 983 987 1,021 1,010 975 985 938 946 968 36 17 -2 -15 53 Textiles, apparel, and leather............................. 589 567 576 577 585 607 609 597 597 -31 10 -20 -40 -21 Petroleum refining............. 819 848 892 867 900 857 841 901 891 35 -34 -23 -299 1 Chemicals and rubber....... 1,371 1,330 1,441 1,528 1,661 1,785 1,809 1,821 1,817 -344 -32 -26 -6 -376 Other nondurable goods. . 994 1,010 1,024 1,018 1,048 1,018 1,006 1,008 1,020 6 -2 -79 -72 4 Mining, including crude pe­ troleum and natural gas. 2,891 2,927 3,039 2,998 3,023 2,934 3,000 3,017 2,990 105 -56 -130 -206 49 Trade: Commodity dealers.. 132 119 115 104 116 109 117 101 97 6 12 17 1 18 Other wholesale........ 900 915 893 860 868 847 834 845 836 46 11 60 20 57 Retail......................... 1,354 1,349 1,383 1,428 1,482 1,471 1,450 1,416 1,414 -88 57 3 12 -31 Transportation....................... 4,357 4,397 4,440 4,448 4,461 4,571 4,471 4,596 4,597 -131 -26 -253 286 -157 Communication..................... 430 432 427 427 418 420 422 471 468 7 -48 66 -13 -41 Other public utilities.............. 1,351 1,305 1,316 1,292 1,304 1,272 1,180 1,141 1,094 44 178 122 -46 222 Construction.......................... 1,343 1,257 1,244 1,255 1,245 1,192 1,202 1,225 1,187 52 5 107 36 57 Services................................... 3,596 3,539 3,488 3,438 3,408 3,347 3,311 3,237 3,258 141 89 124 -75 230 All other domestic loans .... 1,627 1,570 1,431 1,413 1,388 1,390 1,362 1,311 1,249 41 141 -21 -15 182 Foreign commercial and in­ dustrial loans.................. 1,957 1,995 2,076 1,956 1,940 1,892 1,950 1,908 1,892 184 100 76 184 Total loans............................. 31,610 31,462 31,921 31,883 32,369 32,378 32,143 32,179 32,103 -457 275 -6 -249 -182 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 □ MARCH 1972 GROSS DEMAND DEPOSITS OF INDIVIDUALS, PARTNERSHIPS, AND CORPORATIONS1 (In billions of dollars) Type of holder Total Class of bank, and quarter or month deposits, Financial Nonfinancial Consumer Foreign All IPC business business other All commercial banks: 1970—June................................................................................ 17.1 85.3 49.0 1.6 9.6 162.5 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................................................................................. 18.3 86.1 54.1 1.4 10.4 170.3 June................................................................................ 17.9 89.9 56.0 1.3 10.7 175.8 Sept................................................................................. 17.9 91.5 57.5 1.2 9.7 177.9 Dec.................................................................................. 18.5 98.0 58.6 1.3 10.7 187.0 Weekly reporting banks: 1970—Dec.................................................................................. 13.5 56.1 23.3 1.2 5.6 99.7 1971—Jan.................................................................................. 13.9 54.4 24.1 1.2 5.6 99.3 Feb.................................................................................. 13.9 52.2 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 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................................................................................. 13.5 53.4 24.1 1.2 5.1 97.2 Sept................................................................................. 13.8 54.6 24.5 1.2 5.5 99.6 Oct.................................................................................. 13.9 55.5 24.5 1.1 5.4 100.4 Nov................................................................................. 13.7 55.8 24.6 1.1 5.4 100.7 Dec.................................................................................. 14.3 58.6 24.9 1.2 5.9 104.9 1972—Jan. *............................................................................... 14.4 56.8 25.4 LI 6.0 103.7 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......................... 1,216 1 ,131 804 746 All member—Cont. Insured................................... 1,216 1,129 803 745 Other reserve city. 332 304 143 125 National member.................. 730 688 433 407 Country............... 605 571 437 411 State member........................ 207 188 147 129 All nonmember 278 255 224 210 All member............................... 937 876 580 536 Insured ................ 278 253 223 209 Noninsured.......... 2 1 1 Note.—These hypothecated deposits are excluded from Time deposits resulted from a change in Federal Reserve regulations. See June 1966 and Loans at all commercial banks beginning with June 30, 1966, as Bulletin, p. 808. shown in the tables on pp. A-20, A-21, and A-26—A-30 (consumer instal­ These deposits have not been deducted from Time deposits and Loans ment loans), and in the table at the bottom of p. A-18. These changes for commercial banks as shown on pp. A-22 and A-23 and on pp. A-24 and A-25 (IPC only for time deposits). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ LOAN SALES BY BANKS; OPEN MARKET PAPER A 33 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1971—Nov. 3......... 2,880 1,695 1,185 1,575 393 '1,182 10.......... 2,866 1,710 '1,152 1,576 391 1,185 17 2,809 1,740 1,069 1,597 412 1,185 24.......... 2,845 1 ,757 1,088 1,596 398 1,198 Dec. 1.......... 2,934 1,723 1 ,211 1,592 400 1,192 8.......... 2,852 1,675 1,177 1,634 398 1,236 15.......... 2,744 1,619 1,125 1,635 395 1 ,240 22.......... '2,841 1,655 '1,186 '1,620 387 '1,233 29.......... '2,840 1,632 '1,208 '1,661 378 '1,283 1972—Jan. 5.......... '2,827 1,596 '1,231 '1,654 371 '1,283 12.......... '2,795 1,603 '1,192 '1,629 362 '1,267 19.......... '2,741 1,583 '1,158 '1,622 362 '1,260 26.......... '2,965 1,729 '1.236 '1,602 351 '1,251 Feb. 2.......... 2,969 1,731 1,238 1,615 345 1,270 9.......... 2,911 1,749 1,162 1,604 345 1,259 16.......... 2,837 1,735 1,102 1,624 347 1,277 23.......... 2,873 1.718 1,155 1,640 340 1,300 Note.—Amounts sold under repurchase agreement are excluded. Figures include small amounts sold by banks other than large weekly reporting banks. COMMERCIAL AND FINANCE COMPANY PAPER AND BANKERS’ ACCEPTANCES OUTSTANDING (In millions of dollars) Commercial and finance Dollar acceptances company paper Held by Based on- Placed through Placed End of period dealers directly Accepting banks F.R. Banks Total Total Im- Ex­ Others ports ports All Bank Bank For­ into from other related Other1 related Other 2 Total Own Bills Own eign United United bills bought acct. corr. States States 1965. 9,058 1,903 7,155 3,392 1,223 1,094 129 187 144 1,837 792 974 1,626 1966. 13,279 3,089 10,190 3,603 1,198 983 215 193 191 2,022 997 829 1,778 1967. 16,535 4,901 11,634 4,317 1,906 1,447 459 164 156 2,090 1,086 989 2,241 1968. 20,497 7,201 13,296 4,428 1,544 1,344 200 58 109 2,717 1,423 952 2,053 1969. 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. 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 ^1,688 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 4,115 2,748 1,510 3,043 May. 31,115 392 12,608 1,356 16,759 7,494 2,927 2,382 545 112 253 4,203 2,889 1,479 3,126 June. 29,472 448 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 Sept.. 29,946 395 11,909 1,505 8,148 2,803 2,227 575 51 259 5,036 3,286 1,470 3,391 Oct.. 31,205 454 11,897 1,527 7,811 3,000 2,350 650 52 261 4,499 3,148 1,366 3,296 Nov.. 31 ,164 406 11,825 1,624 7,479 2,852 2,204 648 58 258 4,312 2,848 1,392 3,239 Dec.. 29,934 495 10.923 1.478 7,889 3,480 2,689 791 261 254 3,894 2,834 1,546 3,509 ^ Dec.. 30,824 495 10.923 1.478 1972—Jan................ 31,857 505 11,922 1,582 17,848: 7,601 2,917 2,157 761 75 253 4,356 2,558 1,584 3,458 ^ Data for commercial and finance company paper on new basis 1 As reported by dealers; includes finance company paper as well as beginning December 1971. The new series reflects inclusion of paper other commercial paper sold in the open market. issued directly by real estate investment trusts and several additional 2 As reported by finance companies that place their paper directly with finance companies. investors. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 34 INTEREST RATES □ MARCH 1972 PRIME RATE CHARGED BY BANKS (Per cent per annum) In effect during— Rate Effective date Rate Effective date Rate Effective date 192 9 51/2-6 1954—Mar. 17 1967—Jan. 26-27 51/2-53/4 1971—Feb. 16 534 193 0 31/2-6 1955—Aug. 4 31/4 M No a v r. . 2 20 7 . . . . . . 5 6 1/2 Mar. 1 1 1 9 5 51 1 / 4 4 -51,4 193 1 2%-5 Oct. 14 31/2 Apr. 23. 51/4-51/2 1 1 9 9 3 3 3 2 3 11 * / 4 2 - - 4 4 1956— A A u p g r. . 13 2 1 3 4 34 1968— S N A e o p p v r t . . . 1 2 1 5 9 3 . . . . . . . . . 6 6 6 1 1 / / 4 2 -6V4 J M ul a y y 11 6 7 . . . 5 5 6 1 1/ /2 2-6 1934— Dec. 2.. . 61/2 Oct. 20 534 1947 (Nov.) I1/2 1957—Aug. 6 41/2 18. .. 634 Nov. 1 5Y4-5H 4 51/2-5^ Effective date 1958—J A a p n r . . 2 2 2 1 4 31/2 1969—J M an a . r . 1 7 7 . . . . . . 7 71/2 22 8 5 53 1/ / 2 8-51/2 Sept. 11 4 June 9.. . 81/2 29 51/4-51/2 Dec. 6 51/4-5%- 1947—Dec 1 iy4 1959—May 18 41/2 1970—Mar. 25... 8 51/2 1948—Aug J[ 2 Sept. 1 5 N Se o p v t . . 2 1 1 2 . . . . . . I 7 V M 2 2 31 7 5 51 1 / / 4 4-51/2 1960—Aug. 23 41/2 23... 7 1950—Sept. 22......... 21/4 Dec. 22... 63/4 1972—Jan. 3 5-51/8- 1965—Dec. 6 5 1951—Jan. 8 21/2 1971—Jan. 6... 61/2 17 43/4 51 - /4 51/4 Oct. 17......... 23/4 1966—Mar. 10 51/2 15... 614 24 45/8-5 Dec. 19......... 3 June 29 53/4 18.. . 6 31 41/2-43/4 Aug. 16 6 Feb. 28 43/8-41/2- 1953—Apr. 27......... 314 43/4 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 Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. Nov. Aug. 1971 1 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 1971 Short-term 35 centers..................................... 6.18 6.51 7.51 7.68 7.05 7.27 6.51 6.88 6.26 6.58 5.93 6.27 New York City........................ 5.86 6.25 7.33 7.49 6.79 7.00 6.17 6.64 5.99 6.37 5.78 6.17 7 other Northeast.................... 6.40 6.77 7.75 7.88 7.31 7.52 6.73 7.07 6.46 6.81 6.00 6.42 8 North Central....................... 6. 13 6.46 7.13 7.37 6.89 7.17 6.45 6.83 6.13 6.45 5.95 6.27 7 Southeast............................... 6.47 6.77 7.72 7.75 7.16 7.36 6.65 6.87 6.39 6.62 6.01 6.46 6.43 6.64 7.38 7.62 6.83 7.06 6.44 6.79 6.27 6.74 6.31 6.31 4 West Coast............................ 6.21 6.54 7.93 8.06 7.29 7.43 6.64 7.11 6.65 6.55 5.92 6.31 Revolving credit 35 centers..................................... 5.98 6.31 7.24 7.40 6.74 7.08 6.16 6.49 6.01 6.36 5.94 6.28 New York City........................ 5.94 6.31 6.78 6.74 6.52 6.74 6.02 6.33 5.85 6.28 5.94 6.30 7 other Northeast.................... 6.16 6.64 8.17 8.25 7.20 7.67 6.15 6.62 6.30 6.86 6.11 6.58 8 North Central....................... 6.10 6.37 7.21 7.63 6.79 7.12 6.22 6.47 5.93 6.61 6.09 6.30 7 Southeast............................... 6.04 6.18 6.52 6.52 6.56 6.57 6.30 6.26 6.25 6.09 5.81 6.14 8 Southwest.............................. 6.70 6.92 7.54 7.77 6.72 6.90 6.57 7.31 6.63 6.71 6.77 6.86 4 West Coast............................ 5.88 6.20 7.65 8.03 6.69 7.13 6.10 6.41 5.94 6.17 5.84 6.17 Long-term 35 centers..................................... 6.44 6.67 7.55 7.54 6.95 7.46 6.79 7.10 6.57 6.92 6.35 6.54 New York City........................ 6.36 6.31 6.39 6.12 6.24 6.80 6.40 6.60 6.50 6.65 6.35 6.26 7 other Northeast.................... 6.64 6.78 8.36 8.41 7.00 7.48 7.08 7.27 7.50 6.67 6.27 6.59 8 North Central....................... 6.58 6.99 7.69 7.08 7.38 7.74 6.79 6.85 6.32 6.82 6.53 7.00 7 Southeast............................... 7.28 7.73 6.97 7.34 6.29 7.60 7.78 8.71 7.78 7.27 7.05 7.00 8 Southwest.............................. 6.44 7.12 6.85 7.47 6.93 7.48 6.63 7.47 6.11 8.02 6.46 6.68 4 West Coast........................... 6.20 6.55 8.16 7.72 7.19 7.35 6.64 7.04 6.16 6.60 6.12 6.45 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

MARCH 1972 □ INTEREST RATES A 35 MONEY MARKET RATES (Per cent per annum) Finance U.S. Government securities (taxable)4 Prime CO. Prime Period p co a m pe l r . p p l a a p c e ed r b a a c n c k e e p r t s ­ ’ F f e u d n e d r s al 3-month bills5 6-month bills5 9- to 12-month issues 4- to 6- directly, ances, rate3 3- to 5months1 m 3- o t n o t h 6 s - 2 90 days1 n R ew at e is o su n e M y a ie r l k d et n R ew at e is s o u n e M y a ie r l k d et k B e il t l s y i ( e m ld a ) r 5 ­ Other6 is y s e u a e r s 7 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 1971............................ 5.11 4.91 4.85 4.66 4.348 4.33 4.511 4.51 4.67 4.75 5.77 1971—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 Oct................... 5.54 5.30 5.05 5.20 4.489 4.46 4.626 4.60 4.75 4.74 5.68 Nov................. 4.92 4.81 4.78 4.91 4.191 4.22 4.338 4.38 4.49 4.50 5.50 Dec.................. 4.74 4.60 4.45 4.14 4.023 4.01 4.199 4.23 4.40 4.38 5.42 1972—Jan................... 4.08 3.95 3.92 3.50 3.403 3.38 3.656 3.66 3.78 3.99 5.33 Feb.................. 3.93 3.78 3.52 3.29 3.180 3.18 3.594 3.63 4.05 4.07 5.51 Week ending— 1971—Nov. 6.......... 5.03 4.97 4.78 5.16 4.233 4.18 4.346 4.34 4.41 4.37 5.41 13 4.88 4.88 4.75 4.93 4.174 4.18 4.340 4.37 4.47 4.40 5.47 20 ... 4.93 4.80 4.75 4.88 4.122 4.15 4.255 4.31 4.42 4.46 5.47 27.......... 4.88 4.66 4.81 4.86 4.236 4.33 4.411 4.49 4.61 4.69 5.63 Dec. 4.......... 4.88 4.73 4.75 4.68 4.324 4.28 4.431 4.42 4.60 4.63 5.52 11 4.88 4.70 4.58 4.59 4.091 4.11 4.207 4.28 4.53 4.54 5.48 18......... 4.75 4.63 4.50 4.20 3.944 4.04 4.144 4.27 4.50 4.40 5.45 25......... 4.75 4.50 4.40 3.89 4.023 4.02 4.263 4.25 4.38 4.30 5.43 1972—Jan. 1......... 4.50 4.50 4.18 4.05 3.731 3.73 3.952 4.03 4.09 4.15 5.27 8.......... 4.38 4.20 4.10 3.57 3.735 3.59 4.043 3.92 4.03 4.11 5.31 15.......... 4.10 3.98 3.88 3.71 3.109 3.16 3.375 3.43 3.65 3.92 5.20 22.......... 3.98 3.85 3.88 3.54 3.276 3.31 3.452 3.58 3.64 3.94 5.32 29.......... 3.88 3.80 3.85 3.43 3.493 3.46 3.754 3.71 3.79 4.00 5.47 Feb. 5.......... 3.98 3.88 3.75 3.23 3.367 3.35 3.733 3.78 4.05 4.05 5.55 12 .... 4.00 3.78 3.50 3.25 3.141 3.09 3.594 3.56 4.00 3.92 5.51 19 .... 3.93 3.75 3.45 3.43 3.066 3.04 3.537 3.50 3.95 4.04 5.47 26.......... 3.88 3.75 3.43 3.34 3.145 3.22 3.513 3.64 4.11 4.21 5.50 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 dosing 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 □ MARCH 1972 BOND AND STOCK YIELDS (Per cent per annum) Government bonds Corporate bonds Stocks State By selected By Dividend/ Earnings/ Period United and local rating group price ratio price ratio ( S l t o a n te g s ­ Total i term) Total i Aaa Baa Aaa Baa Indus­ Rail­ Public Pre­ Com­ Com­ trial road utility ferred mon mon 1962............................................... 3.95 3.30 3.03 3.67 4.62 4.33 5.02 4.47 4.86 4.51 4.50 3.37 6.06 1963............................................... 4.00 3.28 3.06 3.58 4.50 4.26 4.86 4.42 4.65 4.41 4.30 3.17 5.68 1964............................................... 4.15 3.28 3.09 3.54 4.57 4.40 4.83 4.52 4.67 4.53 4.32 3.01 5.54 1965............................................... 4.21 3.34 3.16 3.57 4.64 4.49 4.87 4.61 4.72 4.60 4.33 3.00 5.87 1966............................................... 4.66 3.90 3.67 4.21 5.34 5.13 5.67 5.30 5.37 5.36 4.97 3.40 6.72 1967............................................... 4.85 3.99 3.74 4.30 5.82 5.51 6.23 5.74 5.89 5.81 5.34 3.20 5.71 1968............................................... 5.25 4.48 4.20 4.88 6.51 6.18 6.94 6.41 6.77 6.49 5.78 3.07 5.84 1969............................................... 6.10 5.73 5.45 6.07 7.36 7.03 7.81 7.22 7.46 7.49 6.41 3.24 6.05 1970............................................... 6.59 6.42 6.12 6.75 8.51 8.04 9.11 8.26 8.77 8.68 7.22 3.83 6.28 1971............................................... 5.74 5.62 5.22 5 89 7.94 7.39 8.56 7.57 8.38 8.13 6.69 3.14 1971 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 5.74 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 5.65 Oct...................................... 5.46 5.05 4.75 5.38 7.88 7.39 8.48 7.58 8.25 8.04 6.75 3.16 Nov.................................... 5.44 5.20 4.94 5.53 7.77 7.26 8.38 7.46 8.13 7.96 6.78 3.31 Dec..................................... 5.62 5.24 4.99 5.55 7.75 7.25 8.38 7.42 8.12 7.92 6.81 3.10 1972—Jan...................................... 5.62 5.13 4.84 5.49 7.66 7.19 8.23 7.34 7.98 7.85 6.57 2.96 Feb..................................... 5.67 5.29 5.01 5.63 7.68 7.27 8.23 7.39 8.00 7.84 6.67 2.92 Week ending— 1971—Dec. 4............................. 5.58 5.50 5.20 5.85 7.79 7.28 8.42 7.47 8.14 7.96 6.78 3.21 11............................. 5.59 5.25 5.00 5.55 7.79 7.27 8.42 7.46 8.15 7.97 6.76 3.17 18............................. 5.63 5.21 5.00 5.35 7.76 7.24 8.39 7.43 8.14 7.92 6.87 3.12 25............................. 5.68 5.18 5.00 5.40 7.74 7.23 8.36 7.41 8.12 7.89 6.83 3.02 1972—Jan. 1............................. 5.60 5.04 4.75 5.40 7.70 7.22 8.31 7.37 8.06 7.88 6.79 2.99 8............................. 5.61 5.05 4.75 5.40 7.67 7.19 8.27 7.36 8.02 7.86 6.68 2.97 15............................. 5.57 5.00 4.65 5.40 7.65 7.17 8.21 7.33 8.00 7.84 6.52 2.95 22............................. 5.61 5.16 4.90 5.50 7.63 7.16 8.18 7.31 7.95 7.82 6.49 2.94 29............................. 5.67 5.31 5.05 5.65 7.67 7.22 8.24 7.36 7.95 7.87 6.57 2.99 Feb. 5............................. 5.70 5.36 5.10 5.70 7.68 7.25 8.26 7.39 7.99 7.85 6.62 2.93 12............................. 5.71 5.26 5.00 5.60 7.70 7.29 8.25 7.42 8.00 7.84 6.71 2.91 19............................. 5.65 5.26 5.00 5.60 7.68 7.28 8.23 7.39 8.01 7.83 6.64 2.91 26............................. 5.63 5.29 4.95 5.60 7.67 7.26 8.21 7.35 8.01 7.83 6.71 2.92 Number of issues2....................... 8 20 5 5 119 20 30 40 29 40 14 500 500 1 Includes bonds rated Aa and A, data for which are not shown sep­ Govt.: Averages of daily figures for bonds maturing or callable in 10 years arately. Because of a limited number of suitable issues, the number or more. (2) State and local govt.: General obligations only, based on of corporate bonds in some groups has varied somewhat. As of Dec. Thurs. figures. (3) Corporate: Averages of daily figures. (2) and (3) are 23, 1967, Aaa-rated railroad bonds are no longer a component of the from Moody’s Investors Service series. railroad average or the Aaa composite series. Stocks: Standard and Poor’s corporate series. Dividend/price ratios 2 Number of issues varies over time; figures shown reflect most recent are based on Wed. figures; earnings/price ratios are as of end of period. count. Preferred stock ratio is based on eight median yields for a sample of noncallable issues—12 industrial and two public utility; common stock ratios Note.—Annual yields are averages of monthly or quarterly data. on the 500 stocks in the price index. Quarterly earnings are seasonally Bonds: Monthly and weekly yields are computed as follows: (1) U.S. adjusted at annual rates. Notes to tables on opposite page: Security Prices: Terms on Mortgages: i Begins June 30, 1965, at 10.90. On that day the average price of a share i Fees and charges—related to principal mortgage amount—include of stock listed on the American Stock Exchange was $10.90. loan commissions, fees, discounts, and other charges, which provide added income to the lender and are paid by the borrower. They exclude Note.—Annual data are averages of monthly figures. Monthly and any closing costs related solely to transfer of property ownership. weekly data are averages of daily figures unless otherwise noted and are computed as follows: U.S. Govt, bonds, derived from average market Note.—Compiled by Federal Home Loan Bank Board in cooperation yields in table on preceding page on basis of an assumed 3 per with Federal Deposit Insurance Corporation. Data are weighted averages cent, 20-year bond. Municipal and corporate bonds, derived from average based on probability sample survey of characteristics of mortgages yields as computed by Standard and Poor’s Corp., on basis of a 4 per cent, originated by major institutional lender groups (including mortgage 20-year bond; Wed. closing prices. Common stocks, derived from com­ companies) for purchase of single-family homes. Data exclude loans for ponent common stock prices. Average daily volume of trading, normally refinancing, reconditioning, or modernization; construction loans to conducted 5 days per week for 5 Vi hours per day, or 21 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

MARCH 1972 □ SECURITY MARKETS A 37 SECURITY PRICES Common stock prices Volume of Bond prices New York Stock Exchange trading in (per cent of par) stocks Amer­ (thousands of Period Standard and Poor’s index New York Stock Exchange index ican shares) (1941-43= 10) (Dec. 31, 1965 = 50) Stock Ex­ change ( G t l U e o o r . n m v S g t . ) . ­ S l a o t n c a d a te l p A C o A r o a r A t ­ e Total In tr d ia u l s­ R ro a a i d l­ P u u ti b li l t i y c Total In tr d ia u l s­ T p t o r i a o r n t n a s ­ ­ Utility na F n i c ­ e in to d t e a x l i NYSE AMEX 1962......................... 86.94 112.0 96.2 62.38 65.54 30.56 59.16 3,820 1,225 1963......................... 86.31 111.3 96.8 69.87 73.39 37.58 64.99 8.52 4,573 1,269 1964......................... 84.46 111.5 95.1 81.37 86.19 45.46 69.91 9.81 4,888 1.570 1965......................... 83.76 110.6 93.9 88.17 93.48 46.78 76.08 12 05 6,174 2,120 1966......................... 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 1967......................... 76.55 100.5 81.8 91.93 99.18 46.72 68.10 50.77 51.97 53.51 45.43 49.82 19.67 10,143 4,508 1968......................... 72.33 93.5 76.4 98.70 107.49 48.84 66.42 55.37 58.00 50.58 44.19 65.85 27.72 12,971 6,353 1969......................... 64.49 79.0 68.5 97.84 107.13 45.95 62.64 54.67 57.45 46.96 42.80 70.49 28.73 11,403 5,001 1970......................... 60.52 72.3 61.6 83.22 91 .29 32.13 54.48 45.72 48.03 32.14 37.24 54.64 22.59 10,532 3,376 1971......................... 68.80 80.0 65.0 98.29 108.35 41.94 59.33 54.22 57.92 44.35 39.53 70.38 25.22 17,429 4.234 1971—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 77.4 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 Oct................ 70.33 84.7 65.2 97.29 107.28 44.58 57.41 53.76 57.52 47.02 37.93 71.24 25.24 13,340 3,622 Nov............... 70.47 84.1 c66.4 92.78 102.21 41.19 55.86 51.17 54.50 44.29 36.87 68.98 24.10 13,163 3.234 Dec................ 68.80 83.5 66.5 99.17 109.67 43.17 57.07 54.76 58.85 48.34 37.52 72.28 25.04 17,171 4,777 1972—Jan................ 68.79 84.6 67.1 103.30 114.12 45.16 60.19 57.19 61 .33 50.56 40.02 74.24 26.46 18,072 5,516 Feb................ 68.32 83.8 66.7 105.24 116.86 45.66 57.41 58.45 63.36 52.80 38.56 73.74 27.52 18,817 6,328 Week ending— 1972—Feb. 5 ... 68.00 82.4 66.7 104.43 115.69 45.94 58.51 57.99 62.57 52.33 39.16 74.20 27.26 19,941 7,075 12 ... 67.95 84.2 66.4 105.10 116.67 45.75 57.48 58.34 63. 16 52.76 38.75 73.87 27.43 19,102 6,312 19 . . 68.51 84.4 66.9 105.22 116.93 45.66 56.75 58.44 63.44 52.91 38.18 73.54 27.53 18,643 6,014 26 . . . 68.66 84.1 66.9 105.58 117.30 45.34 57.21 58.64 63.70 52.93 38.33 73.31 27.67 16,910 5,981 For notes see opposite page. TERMS ON CONVENTIONAL FIRST MORTGAGES New homes Existing homes Period c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h ( e e a p e n r e s g t r ) e & i s M (y a e t a u r r s i ) ty L c p r ( a o e p r t i n a e i c n t o r e ) / (t d h c o p o P h l r u u l a i a s c r s r . e ­ e s o ) f (t a d h m L o o l o u o la a s u r . n n s o ) t f c C t ( r r e p a o a n e t c n e t r ) t ­ c F c h ( e e a p e n r e s t g ) r e & 1 s M (y a e t a u r r s i ) ty L c r p ( a e o p r t n i a e i c t n o r e ) / (t d h c o o p P h l u r l u a i a s c r s . r e ­ e s o ) f (t d a h L m o o l u o l o s a a u . r n n s o ) t f 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 1971....................... 7.60 .87 26.2 74.3 36.3 26.5 7.54 .77 24.2 73.9 31.7 23.1 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 .75 24.2 74.5 31.6 23.2 Aug............. 7.60 .84 26.2 73.9 36.5 26.5 7.58 .76 24.5 74.2 31.9 23.5 Sept............. 7.67 .97 25.8 75.3 35.1 25.9 7.63 .79 24.2 74.5 30.7 22.5 Oct.............. 7.68 .97 26.4 75.5 35.2 26.3 7.62 .79 24.1 74.2 31.2 22.9 Nov............. 7.65 .87 26.7 75.4 36.7 27.3 7.56 .79 24.3 74.6 31.6 23.2 Dec.r.......... 7.62 .93 26.6 74.5 36.4 26.5 7.51 .80 24.6 74.6 32.5 23.9 1972—Jan.............. 7.62 .91 26.5 75.3 37.6 27.8 7.46 .76 24.5 74.6 32.4 23.8 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 38 STOCK MARKET CREDIT □ MARCH 1972 STOCK MARKET CUSTOMER FINANCING (In millions of dollars) Margin credit at brokers and banks 1 Regulated 2 Unregu­ lated 3 Other Free credit balances security at brokers 5 End of period By source By type credit at banks 4 Margin stock Convertible Subscription Nonmargin bonds issues stock Total Brokers Banks credit at banks Brokers Banks Brokers Banks Brokers Banks Margin Cash accts. accts. 1971—Jan............... 5,044 4,224 820 4,000 734 188 69 36 17 1,104 1,220 433 2,080 Feb.............. 5,174 4,311 863 4,090 776 186 70 35 17 1,121 1,205 484 2,259 Mar............. 5,392 4,531 861 4,300 772 193 72 38 18 1,137 1,183 465 2,333 Apr.............. 5,598 4,776 822 4,530 739 206 67 40 16 1,122 1,206 445 2,216 May............ 5,701 4,874 827 4,620 754 213 57 41 16 1,122 1,235 431 2,084 June............ 5,783 4,976 807 4,720 733 213 58 43 16 1,228 1,263 415 2,023 July............. 5,860 5,050 810 4,790 737 215 56 45 17 1,091 1,183 410 1,841 Aug............. 5,917 5,121 796 4,850 723 227 58 44 15 1,208 1,206 405 1,838 Sept............. 5,990 5,208 782 4,930 713 230 54 48 15 1,182 1,237 364 1,734 Oct............... 6,016 5,238 778 4,950 711 239 53 49 14 1,194 1,204 393 1,765 Nov............. 5,995 5,198 797 4,910 731 242 51 46 15 1,193 1,209 412 1,758 Dec.............. 6,835 6,000 835 5,700 764 258 57 42 14 1,197 1,298 387 1,837 1972—Jan............... 6,850 5,989 861 5,700 789 252 56 37 16 1,182 1,313 448 2,040 1 Margin credit includes all credit extended to purchase or carry stocks 3 Nonmargin stocks are those not listed on a national securities exchange or related equity instruments and secured at least in part by stock (see and not included on the Board of Governors of the Federal Reserve Dec. 1970 Bulletin). Credit extended by brokers is end-of-month data System’s list of OTC margin stocks. At banks, loans to purchase or carry for member firms of the NYSE. June data for banks are universe totals; nonmargin stocks are unregulated; at brokers, such stocks have no loan all other data for banks represent estimates for all commercial banks value. based on reports by a reporting sample, which accounted for 60 per cent 4 Includes loans to purchase or carry margin stock if these are unsecured of security credit outstanding at banks on June 30, 1971. or secured entirely by unrestricted collateral (see Dec. 1970 Bulletin). 2 In addition to assigning a current loan value to margin stock generally, 5 Free credit balances are in accounts with no unfulfilled commitments Regulations T and U permit special loan values for convertible bonds and to the brokers and are subject to withdrawal by customers on demand. stock acquired through exercise of subscription rights. EQUITY STATUS OF MARGIN ACCOUNT DEBT SPECIAL MISCELLANEOUS ACCOUNT BALANCES AT BROKERS AT BROKERS, BY EQUITY STATUS OF ACCOUNTS (Per cent of total debt, except as noted) (Per cent of total, except as noted) Total Equity class (per cent) Equity class of accounts E pe n r d i o o d f l ( d i m o o o n f i l l ­ s ­ 8 m 0 o o re r 70-79 60-69 50-59 40-49 Un 4 d 0 er End Of period s c t N r a e t e d u t i s t 60 o r p e m in r o c d r e e e n b t i t 6 s L 0 t e a p s t s u e r s t h c a e n n t o ( f b m T a d i l o o l a l t l n i a l o c a l n e r s s ) lars) 1 1971—Jan........................ 49.2 43.6 7.2 4,260 1971—Jan. . 4,000 12.1 19.6 28.3 17.1 10.0 12.8 Feb....................... 49.1 44.2 6.7 4,380 Feb. . 4,090 11.4 19.5 31.1 16.3 9.3 12.3 48.6 45.5 5.9 4,400 Mar.. 4,300 11.8 20.0 33.0 16.2 7.2 11.8 46.8 48.1 5.1 4,500 Apr.. 4,530 11.8 20.3 35.0 15.0 6.2 11.7 46.5 47.1 6.4 4,360 May. 4,620 10.6 15.7 36.7 18.0 7.4 11.6 45.1 47.8 7.0 4,250 June. 4,720 9.6 14.4 34.9 20.1 8.6 12.2 July...................... 45.2 46.7 8.1 4,190 July.. 4,790 8.3 12.2 29.1 25.2 11.0 14.1 44.6 48.0 7.4 4,230 Aug.. 4,850 9.3 14.4 35.4 19.6 8.9 12.6 44.2 47.0 8.8 4,160 Sept.. 4,930 8.7 13.1 34.3 20.7 9.9 13.3 45.5 45.2 9.3 4,060 Oct... 4,950 7.5 10.9 28.7 24.4 12.1 16.3 44.6 45.1 10.2 4,000 Nov.. 4,910 7.3 10.7 25.9 26.2 13.1 16.8 35.0 55.7 9.4 7,300 Dec.. 5,700 8.6 12.7 27.1 29.9 10.2 11.5 1972—Jan........................ 36.8 55.9 7.3 5,780 1972—Jan... 5,400 8.7 13.5 27.1 32.6 8.5 9.6 Note.—Special miscellaneous accounts contain credit balances that 1 See note 1 to table above. may be used by customers as the margin deposit required for additional purchases. Balances may arise as transfers based on loan values of other Note.—Each customer’s equity in his collateral (market value of col­ collateral in the customer’s margin account or deposits of cash (usually lateral less net debit balance) is expressed as a percentage of current col­ sales proceeds) occur. lateral values. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ SAVINGS INSTITUTIONS A 39 MUTUAL SAVINGS BANKS (In millions of dollars) Loans Securities Total Mortgage loan assets— commitments3 End of period M ga o g r e t­ Other G U o . v S t . . S g l a o o t n c a v d a t t e l . o C r a t o a h n r t e d p e r o 1 ­ Cash O as t s h e e ts r l g r i e T e a a t s n b o i n e e e t i r d s l a r v i a l ­ e l D i e t p s o 2 s­ l O ia t t i b h e i s e li r ­ G r c e o e s a n u e c e n r ­ v r t a s e l classi ( f i i n e d m b o y n t m hs a ) turity accts. 3 or 3-6 6-9 Over Total less 9 1963............... 36,007 607 5,863 440 5,074 912 799 49,702 44,606 943 4,153 2,549 1964............... 40,328 739 5,791 391 5,099 1,004 886 54,238 48,849 989 4,400 2,820 1965............... 44,433 862 5,485 320 5,170 1,017 944 58,232 52,443 1,124 4,665 2,697 1966............... 47,193 1,078 4,764 251 5,719 953 1,024 60,982 55,006 1,114 4,863 2,010 1967............... 50,311 1,203 4,319 219 8,183 993 1,138 66,365 60,121 1,260 4,984 742 982 799 2,523 1968............... 53,286 1,407 3,834 194 10,180 996 1,256 71,152 64,507 1,372 5,273 811 1.034 1,166 3,011 1969............... 55,781 1,824 3,296 200 10,824 912 1,307 74,144 67,026 1,588 5,530 584 485 452 946 2,467 1970—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 Sept.. . 60,622 2,782 3,467 339 17,282 1,177 1,742 87,410 79,236 2,129 6,045 1,086 509 422 1,196 3,213 Oct.. .. 61,036 2,840 3,382 343 17,292 1,250 1,712 87,856 79,648 2,150 6,059 1,125 415 484 1,230 3,253 Nov.. . 61,473 2,891 3,346 357 17,452 1,280 1,695 88,495 80,165 2,218 6,112 1,129 554 461 1,231 3,375 Dec---- 62,069 2,808 3,334 385 17,674 1,389 1,711 89,369 81,440 1,810 6,118 1,047 627 463 1,310 3,447 1 Also includes securities of foreign governments and international Note.—National Assn. of Mutual Savings Banks data; figures are organizations and nonguaranteed issues of U.S. Govt, agencies. estimates for all savings banks in the United States and differ somewhat 2 See note 8, p. A-19. from those shown elsewhere in the Bulletin; the latter are for call dates 3 Commitments outstanding of banks in New York State as reported to and are based on reports filed with U.S. Govt, and State bank supervisory the Savings Banks Assn. of the State of New York. Data include building agencies. Loans are shown net of valuation reserves. loans beginning with Aug. 1967. LIFE INSURANCE COMPANIES (In millions of dollars) Government securities Business securities End of period Total Mort­ Real Policy Other assets Total U S n ta i t t e e s d Sta lo te c a a l nd Foreign 1 Total Bonds Stocks gages estate loans assets Statement value: 1963, 141,121 12,438 5,813 3,852 2,773 60,780 53,645 7,135 50,544 4,319 6,655 6,385 1964 149,470 12,322 5,594 3,774 2,954 63,579 55,641 7,938 55,152 4,528 7,140 6,749 1965. 158,884 11,679 5,119 3,530 3,030 67,599 58,473 9,126 60,013 4,681 7,678 7,234 1966 167,022 10,837 4,823 3,114 2,900 69,816 61,061 8,755 64,609 4,883 9,117 7,760 1967, 177,832 10,573 4,683 3,145 2,754 76,070 65,193 10,877 67,516 5,187 10,059 8,427 1968. 188,636 10,509 4,456 3,194 2,859 82,127 68,897 13,230 69,973 5,571 11,306 9,150 Book value: 1966. 167,022 10,864 4,824 3,131 2,909 68,677 61,141 7,536 64,661 4,888 9,911 8,801 1967. 177,361 10,530 4,587 2,993 2,950 73,997 65,015 8,982 67,575 5,188 10,060 11,011 1968 187,695 10,483 4,365 3,036 3,082 79,403 68,575 10,828 70,071 5,573 11,284 10,881 1969. 197,208 10,914 4,514 3,221 3,179 84,566 70,859 13,707 72,027 5,912 13,825 9,964 1970—Dec.r........................... 207,254 11,068 4,574 3,306 3,188 88,518 73,098 15,420 74,375 6,320 16,064 10,909 1971-—Jan................................ 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 Aug.............................. 216,436 11,076 4,475 3,452 3,149 96,429 77,581 18,848 74,707 6,749 16,679 10,796 Sept.............................. 217,489 11,000 4,345 3,484 3,171 97,199 78,121 19,078 74,799 6,811 16,782 10,898 Oct............................... 218,257 11,016 4,331 3,485 3,200 97,778 78,890 18,888 74,864 6,876 16,850 10,873 Nov.............................. 219,353 11,150 4,473 3,484 3,193 98,443 79,384 19,059 74,903 6,949 16,948 10,960 Dec............................... 221,573 11,129 4,427 3,518 3,184 99,430 78,912 20,518 75,596 7,097 17,027 11,294 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 □ MARCH 1972 SAVINGS AND LOAN ASSOCIATIONS (In millions of dollars) Mortgage loan Liabilities commitments4 Total assets— End of period M ga o ge rt s ­ I s i n m e t v i c e e e u s n s r t 1 t ­ ­ Cash Other2 lia T b o il t i a ti l e s S c a a v p i i n ta g l s R a d p n e i r v s d o e i f d r u i v e t n s e d ­ s m ro B o w n o e e r y ­ d 3 Loans Other d p M u er r a i i d o n e d g O e p u in n e t g s d ri t o a a o d n t f d ­ 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 1 11,116 2,962 9,571 152,890 131,618 10,315 5,705 2,449 2,803 3,584 1969 5.......... 140.232 10,873 2,438 8,606 162,149 135,538 11,228 9,728 2,455 3,200 807 2,812 1970 5........... 150,331 13,020 3,506 9,326 176,183 146,404 11,991 10,911 3,078 3,799 1,602 4,393 1971—Jan.. r 151,272 15,468 2,916 9,278 178.934 148,958 12,035 10,465 3,046 4,430 1,665 4,565 Feb.r. 152,434 16,767 3,235 9,416 181,852 151,402 12,041 10,068 3,152 5,189 2,069 5,225 Mar.r 154,199 18,297 3,362 9,560 185,418 155,510 12,023 9,809 3,491 4,585 3,130 6,445 Apr.r. 156,343 18,264 3,132 9,723 187,462 157,721 12,010 8.602 3,868 5,261 ,370 7,359 May.r 158,516 18,615 2,986 9,976 190,093 159,881 12,027 7,745 4,327 6,113 ,505 8,300 Juner, 161,209 18,571 2,769 10,002 192,551 162,986 12.336 7,874 4,725 4,630 ,537 8,545 Julyr. 163,720 19,281 2,139 10,084 195,224 164,524 12.337 8,011 4,944 5,408 ,144 8,555 Aug.r, 166,111 18,972 2,077 10,312 197,472 165,633 12,329 8,203 5,023 6,284 ,880 8,311 Sept.r 168.233 18,663 2,056 10,474 199,426 168,303 12,339 8,388 4,996 5,400 ,639 8.004 Oct. r. 170,106 18,971 2,166 10,603 201,846 169,796 12,327 8,353 5,001 6,369 ,537 7,806 Nov.r 172,047 19,096 2,284 10,811 204,238 171,358 12,325 8,439 4,960 7,156 2,511 7,759 Dec... 174,385 18,293 2,783 10,842 206,303 174,472 13,187 9,048 5,072 4,524 2,345 7,237 1972—Jan. p. 175,819 19,709 2,794 10,937 209,259 177,737 13,249 8,064 4,875 5,334 2,490 7,506 1 U.S. Govt, securities only through 1967. Beginning 1968 the total ments are comparable with those shown for mutual savings banks (on reflects liquid assets and other investment securities. Included are U.S. preceding page) except that figures for loans in process are not included Govt, obligations, Federal agency securities, State and local govt, securi­ above but are included in the figures for mutual savings banks. ties, time deposits at banks, and miscellaneous securities, except FHLBB 5 Balance sheet data for all operating savings and loan associations stock. Compensating changes have been made in “Other assets.” were revised by the Federal Home Loan Bank Board for 1969 and 1970. 2 Includes other loans, stock in the Federal home loan banks, other investments, real estate owned and sold on contract, and office buildings Note.—Federal Home Loan Bank Board data; figures are estimates for and fixtures. See also note 1. all savings and loan assns. in the United States. Data are based on 3 Consists of advances from FHLBB and other borrowing. monthly reports of insured assns. and annual reports of noninsured assns. 4 Insured savings and loan assns. only. Data on outstanding commit­ Data for current and preceding year are preliminary even when revised. MAJOR BALANCE SHEET ITEMS OF SELECTED FEDERALLY SPONSORED CREDIT AGENCIES (In millions of dollars) Federal home loan banks Federal National Mortgage Assn. Banks Federal Federal (secondary market for intermediate land Assets Liabilities and capital operations) cooperatives credit banks banks End of period v m a A t n e o d c m ­ e ­ s I m nv e e n s ts t­ p C a o d a n s e s i d ­ h ts B n a o o n n te d d s s M po b d e s e e m i r ­ ts ­ C s a to p c it k al M l g o a a o g n r e t s ­ D n t a e u o n b r t e e d e s s n­ c L a o t o o i t v a o p e n e s s r­ D t e u b re e s n­ c L o a d o u n i a s n d n ­ t s s D t e u b re e s n­ M l g o a a o g n r e t s ­ Bonds bers (A) (L) (A) (L) (A) (L) (A) (L) 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 1971............. 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 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 Sept. . 7,637 2,584 117 7,190 1,522 1,600 16,732 16,241 1,942 1,791 5,841 5,713 7,767 6,884 Oct... 7,640 2,740 99 7,390 1,450 1,603 17,202 16,984 2,030 1,745 5,763 5,680 7,826 7,063 Nov.. 7,708 2,545 101 7,139 1,548 1,607 17,535 17,138 2,076 1,763 5,633 5,606 7,870 7,063 Dec... 7,936 2,520 142 7,139 1,789 1,618 17,791 17,701 2,076 1,801 5,669 5,503 7,917 7,063 1972—Jan.. . 7,238 3,412 156 7,139 1,949 1,647 17,977 17,442 7,971 1,867 2,098 5,537 5,720 7,063 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

CH 1972 □ FEDERALLY SPONSORED CREDIT AGENCIE ISSUES OF FEDERALLY SPONSORED AGENCIES, JANUARY 31, 19 Amount Cou­ Amount Cou­ (millions Agency, and date of issue pon (millions Agency, and date of issue pon illior of dollars) and maturity rate of dollars) and maturity rate lollai Federal National Mortgage Federal intermediate Association—Cont. credit banks 200 Debentures—Cont: Debentures: 300 11/10/70 - 3/12/73........ 7.30 450 5/3/71 -2/1/72.. 583 200 12/12/69 - 3/12/73........ 8.30 250 6/1/71 - 3/1/72.. 461 400 6/12/61 - 6/12/73.......... 41/4 146 7/1/71 -4/3/72.. 394 250 7/10/70 - 6/12/73.......... 8.35 350 8/2/71 - 5/1/72.. 614 310 7/12/71 -6/12/73............ 6.75 550 9/1/72- 6/1/72.. 403 350 3/10/70 - 9/10/73.......... 8.10 300 10/4/71 - 7/3/72 422 400 6/10/71 -9/10/73........... 6.13 350 11/1/71 - 8/1/72. 594 400 12/10/70 - 12/10/73___ 5.75 500 12/1/71 - 9/5/72 529 450 8/10/71 - 12/10/73......... 7.15 500 1/3/72 - 10/2/72. 397 300 12/1/71 - 3/11/74.......... 5.45 400 3/2/70 - 3/1/73. 203 250 4/10/70 - 3/11/74.......... 7.75 350 9/1/70-7/2/73. . 200 250 8/5/70 - 6/10/74........... 7.90 400 7/1/71 - 1/2/74.. 212 300 11/10/71 -6/10/74.......... 5.70 350 1/4/71 - 7/1/74. 224 183 9/10/69 - 9/10/74.......... 7.85 250 1/3/72 - 7/1/75. . 302 232 2/10/71 -9/10/74............ 5.65 300 250 5/10/71 - 12/10/74.......... 6.10 250 265 9/10/71 - 12/10/74.......... 6.45 450 300 11/10/70 - 3/10/75........ 7.55 300 350 10/12/71 - 3/10/75........ 6.35 600 250 4/12/71 - 6/10/75............ 5.25 500 200 10/13/70 - 9/10/75........ 7.50 350 350 3/11/71 - 3/10/76............ 5.65 500 200 6/10/71 -6/10/76........... 6.70 250 Federal land banks 200 11/10/71 -9/10/76......... 6.13 300 Bonds: 7/12/71 - 12/10/76.......... 7.45 300 2/15/57 - 2/15/67-72 72 2/13/62 - 2/10/77.......... 4% 198 8/20/68 - 2/15/72. . . 230 12/10/70 - 6/10/77........ 6.38 250 2/23/71 - 4/20/72.... 300 5/10/71 -6/10/77........... 6.50 150 4/20/71 -4/20/72... . 437 9/10/71 -9/12/77........... 6.88 300 6/22/70 - 7/20/72. . . 442 1,300 10/12/71 - 12/11/78. . .. 6.75 300 9/14/56 - 9/15/72... 109 12/10/71 - 12/10/79___ 6.55 350 9/22/69 - 9/15/72. . . 337 250 1/21/71 - 6/10/81.......... 7.25 250 10/23/72 - 10/23/72. 200 200 9/10/71 -9/10/81........... 7.25 250 7/20/71 -- 10/23/72... 446 250 2/10/71 - 6/10/82............ 6.65 250 7/20/70 - 1/22/73. . . 407 3/11/71 - 6/10/83............ 6.75 200 2/20/63 - 2/20/73-78 148 11/10/71 -9/12/83.......... 6.75 250 1/20/70 - 7/20/73 . . . 198 4/12/71 -6/11/84........... 6.25 200 8/20/73 -- 7/20/73.... 350 400 12/10/71 - 12/10/84___ 6.90 250 4/20/70 -- 10/22/73. . 300 250 2/20/72 -- 2/20/74. . . 155 200 10/20/70 - 4/22/74. . 354 10/21/71 - 7/27/74. . 326 4/20/71 - 10/21/74... 300 98 2/20/70 - - 1/20/75. . . 220 250 Banks for cooperatives 4/20/65 - - 4/21/75. . . 200 200 Debentures: 7/20/71 - 10/20/75... 300 100 8/2/71 -2/1/72... 6K 491 2/21/66 - - 2/24/76. . . 123 300 10/4/71 - 4/3/72. 53/g 295 7/20/66 - - 7/20/76. . . 150 400 11/1/72 - 5/1/72.. 4.85 290 10/27/71 - 10/20/77. 300 200 12/1/71 - 6/1/72. 4 Vi 346 5/2/66 - 4/20/78___ 150 200 10/1/70 - 10/1/73 7.30 100 2/20/67 - - 1/22/79... 285 400 1/3/72 - 10/1/73.. 4.65 346 2/23/71 - 4/20/81.... 224 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 a MARCH 1972 FEDERAL FISCAL OPERATIONS: SUMMARY (In millions of dollars) U.S. budget Means of financing Receipt-expend- Borrowings from the public 2 Less: Cash and iture account monetary assets Other Period Budget means Net Budget surplus Less: Invest­ of Net lend­ out­ or Public Plus ments by Govt, Equals: Trea­ financ­ Budget ex­ ing lays1 deficit debt Agency accounts Less: Total sury ing, receipts pendi­ (-) securi­ securi­ Special borrow­ operat­ Other net4 tures ties ties notes 3 ing ing S is p s e u c e ia s l Other balance Fiscal year: 196 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 -982 197 1 188,392 210,318 1,107 211,425 -23,033 27,211 -347 6,616 800 19,448 710 -979 3,586 Half year: 1970—Jan .-June 102,910 96,893 767 97,661 5,248 2,693 -1,310 5,451 346 -4,415 2,918 -896 1,188 July-Dee. 87,583 104,117 99 104,216 16,633 18,240 -21 1 ,807 157 16,257 54 -882 -453 1971—Jan.-June 100,830 106,234 1,008 107,242 -6,412 8,971 -328 4,810 642 3,191 657 54 4,120 July-Dee. 93,100 110,608 948 111,557 -18,377 26,001 -1,119 2,803 523 21,556 973 -2,122 Month : 1971—Ja n >•15,768 *•16,834 r287 ••17,121 -1,353 -818 r1,015 -551 r85 >•664 1,518 '422 *•2,630 Feb......... 15,130 16,717 -170 16,546 -1,417 2,324 -1,001 1,464 -382 240 -1,718 -193 -734 Mar........ 13,205 18,328 318 18,646 -5,441 1,003 518 522 324 675 -3,370 57 1,453 Apr......... 21,024 17,769 49 17,818 3,206 223 -345 221 -71 -271 4,365 527 1,957 May........ 13,190 16,882 270 17,152 -3,961 4,954 40 2,095 702 2,197 -1,973 -723 -931 June........ 22,508 19,669 297 19,965 +2,543 1,285 -553 1,059 -17 -310 1,835 -268 -478 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 Sept........ 19,710 18,265 -69 18,196 + 1,513 -2,324 -503 -1,019 + 194 -2,003 470 281 1,239 Oct......... 12,462 18,677 115 18,791 -6,630 -334 50 -1,690 -1 1,407 -3,318 -290 1,314 Nov........ 14,945 18,798 149 18,947 -4,002 2,686 -10 40 47 2,590 -2,324 -17 -928 Dec......... 17,213 17,085 399 17,484 271 9,511 284 1,291 22 8,482 1,328 5,653 -1,230 1972—Ja n 17,596 19,226 243 19,469 -1,873 -1,269 -474 -1,508 -369 134 -191 1,026 2,573 Selected balances Treasury operating balance Federal securities End Memo: pe o ri f od Tax Inves L tm es e s: n ts of Equals: sp D G o e n o b s v t o t . r o - e f d B F a . n R k . s ac l c a o o n a u d n nts d t O a e r p t i h e o e s s r i 5 ­ Total se P c d u u e b r b i l t i t c ies s A ec g u e r n it c ie y s S i p s G s e u c o e i v a s t l , acco O un th ts er S n L p o e e t s c e s i s a : 3 l p T h u b o e b y l t l d a i l c c p o r N r i p v o s a w . t — e 6 Fiscal year: 1968........................ 1,074 4,113 111 5,298 347,578 24,399 59,374 19,766 2,209 290,629 10,041 1969........................ 1,258 4,525 112 5,894 353,720 14,249 66,738 20,923 825 279,483 24,991 1970........................ 1,005 6,929 111 8,045 370,919 12,510 76,124 21,599 825 284,880 35,789 1971......................... 1,274 7,372 109 8,755 398,130 12,163 82,740 22,400 825 304,328 36,886 Calendar year: 1970........................ 1,156 6,834 109 8,099 389,158 12,491 77,931 21,756 825 301,138 38,802 1971......................... 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 Month: 1971—Jan............... 976 8,532 109 9,616 388,341 13,504 77,380 21,842 825 301,798 38,693 Feb............. 1,064 6,725 109 7,898 390,664 12,503 78,843 21,461 825 302,038 38,183 Mar.............. 858 3,561 109 4,528 391,668 13,021 79,366 21,784 825 302,713 37,814 Apr............... 1,322 7,462 109 8,893 391,891 12,676 79,586 21,714 825 302,442 38,694 May............. 874 5,938 109 6,920 396,845 12,716 81,681 22,417 825 304,638 37,275 June............. 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 37,116 Sept.............. 2,102 7,763 113 9,978 412,268 10,720 85,904 22,853 825 313,406 37,380 Oct............... 1,876 4,667 113 6,655 411,934 10,770 84,213 22,853 825 314,812 39,530 Nov.............. 1,996 2,223 113 4,331 414,620 10,760 84,253 22,900 825 317,402 39,392 Dec............... 2,020 9,173 113 11,306 424,131 11,044 85,544 22,922 825 325,884 390,860 1972—Jan............... 2,860 8,118 5 134 11,112 422,862 10,570 84,037 22,522 825 326,017 1 Equals net expenditures plus net lending. 4 Includes accrued interest payable on public debt securities,, deposit 2 The decrease in Federal securities resulting from conversion to private funds, miscellaneous liability and asset accounts, and seigniorage. ownership of Govt.-sponsored corporations (totaling $9,853 million) is 5 As of Jan. 3, 1972, the Treasury operating balance was redefined to not included here. In the bottom panel, however, these conversions de­ exclude the gold balance and to include previously excluded “Other deposi­ crease the outstanding amounts of Federal securities held by the public taries” (deposits in certain commercial depositaries that have been con­ mainly by reductions in agency securities. The Federal National Mortgage verted from a time to a demand basis to permit greater flexibility in Association (FNMA) was converted to private owership in Sept. 1968 and Treasury cash management). the Federal intermediate credit banks (FICB) and banks for coopera­ 6 Includes debt of Federal home loan banks, Federal land banks, R.F.K. tives in Dec. 1968. Stadium Fund, FNMA (beginning Sept. 1968), FICB, and banks for 3 Represents non-interest-bearing public debt securities issued to the cooperatives (beginning Dec. 1968). International Monetary Fund and international lending organizations. New obligations to these agencies are handled by letters of credit. Note.—Half years may not add to fiscal year totals due to revisions in series which are not yet available on a monthly basis. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FEDERAL FINANCE A 43 FEDERAL FISCAL OPERATIONS: DETAIL (Tn millions of dollars) Budget receipts Individual income taxes Corporation Social insurance taxes income taxes and contributions Period Employment Total W he i l t d h­ N w he i o t l n h d ­ ­ fu R n e d ­ s t N ot e a t l c G e r r i e o p ­ s ts s fu R n e d ­ s co P r n t o a a y t l x r l ­ i e b s u a t S n io e d l n f - s1 e in U m s n u p - r l. . c O e n i t p h et t e s r : t N ot e a t l E ta x x c e is s e t C o u m s s ­ E a g s n i t f a d t te c M e r i i e p s ­ t c s . 3 taxes empl. Fiscal year: 196 8 153,671 57,301 20,951 9,52768,72629,897 1 ,232 27,680 1 ,544 3,346 2,05234,62214,079 2,038 3,051 2,491 196 9 187,78470,18227,258 10,191 87,24938,338 1,660 32,521 1,715 3,328 2,353 39,91815,222 2,319 3,491 2,908 197 0 193,74377,41626,236 13,24090,41235,037 2,208 37,190 1,942 3,465 2,70045,29815,705 2,430 3,644 3,424 197 1 188,39276,49024,262 14,52286,23030,320 3,53539,751 1,948 3,673 3,20648,578 16,614 2,591 3,735 3,858 Half year: 1970—Jan.-June 102,91038,61920,465 12,75946,325 19,858 1,226 20,134 1,811 2,196 1,416 25,558 7,464 1,168 2,148 1,615 July-Dee. r87,58437,465 5,569 56542,469 12,744 1 ,467 17,768 133 1,348 1,576 20,826 8,153 1,317 1 ,537 2,006 1971—Jan.-June 100,83039,045 18,693 13,95743,781 17,576 2,068 21,983 1 ,815 2,325 1,630 27,752 8,462 1 ,274 2,198 1 ,853 July-Dee. 93,18038,449 5,589 57443,465 13,262 1,448 19,643 155 1,518 1,67322,989 8,961 1,838 2,395 1,718 Month: 1971—Ja n r15,768 r6,336 4,280 40 rl 0,576 1,085 558 2,178 113 165 264 2,720 1,195 199 269 r284 Feb......... 15,130 7,246 654 1,407 6,493 683 310 4,835 141 721 248 5,944 1,505 175 280 361 Mar........ 13,205 6,605 1,392 4,631 3,366 3,887 363 3,472 152 77 288 3,990 1,443 226 329 328 Apr......... 21,024 5,939 7,951 4,261 9,630 4,360 345 3,294 1,085 301 290 4,970 1,351 221 589 248 May........ 13,190 6,224 735 3,114 3,846 878 255 4,893 209 1,005 258 6,366 1,459 204 379 313 June....... 22,508 6,690 3,681 505 9,867 6,684 236 3,311 115 57 279 3,764 1,510 250 352 318 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 Sept......... 19,710 5,513 3,755 76 9,192 4,505 198 3,299 152 60 273 3,784 1,490 363 263 312 Oct......... 12,462 5,941 396 55 6,282 1,111 375 2,592 116 274 2,983 1,412 334 391 324 Nov........ 14,945 7,245 264 55 7,455 730 218 3,408 424 288 4,120 1,656 343 566 293 Dec........ 17,213 6,823 379 106 7,096 5,064 138 2,308 ' ‘ ‘3 52 278 2,642 1,389 329 545 286 1972—Ja n 17,596 6,627 4,318 110,944 1,228 158 3,044 124 153 295 3,615 743 259 621 344 Budget outlays4 Period Total t f i e N d o n e n a s ­ a e ­ l a I f n fa tl i . rs s S e p r a e a r ­ c c e h A c tu g u r r l e ­ i­ so N u u r r e a r a c ­ t l ­ es m t C r a a o e n n r m d c s e p ­ . d h e C o m a v u o n e u s m l d n i o n . - p g . E p m t d o a i n w u a o d n c n e a ­ r ­ w H e a e l n a f d a lt r h e e V ra e n t­ s In e t s e t r­ g G e o r e v a n l t. ­ t t I g i r n o a o a t c n n v r ­ a s t s , - ­ 5 Fiscal year: 196 8 178,833 80,517 4,619 4,721 5,943 1,655 8,094 4,076 6,739 43,780 6,882 2,561 -4,499 196 9 184,548 81,232 3,785 4,247 6,221 2,081 7,921 1,961 6,525 49,395 7,640 15,791 2,866 -5,117 197 0 196,588 80,295 3,570 3,749 6,201 2,480 9,310 2,965 7,289 56,785 8,677 18,312 3,336 -6,380 1971 . . . .. 211,425 77,663 3,093 3,381 5,097 2,676 11,282 3,382 8,649 70,213 9,787 19,608 3,970 -7,376 1972er6.., 236,610 78,030 3,960 3,180 7,345 4,376 11 ,872 4,039 10,140 82,249 11,127 20,067 5,302 -7,877 1973e6.... 246,257 78,310 3,844 3,191 6,891 2,450 11,550 4,844 11,281 87,775 11,745 21,161 5,531 -8,590 Half year: 1970—Jan.-June. 97,661 39,683 1 ,627 1,910 711 1,017 4,651 1 ,291 4,314 30,432 4,537 9,687 1 ,817 -4,015 July-Dee.. 104,216 38,521 1,409 1,720 4,633 1,561 5,808 1,677 3,744 32,710 4,626 9,597 1,818 -3,607 1971—Jan.-June. 107,242 39,178 1,684 1,661 464 1,101 5,488 1,705 4,905 37,503 5,162 2,147 -3,770 July-Dee.. 111,557 35,755 1,752 1,777 5,999 1,952 6,030 2,181 4,355 38,131 5,003 2,392 -3,822 Month: 1971—Jan.., r17,121 r6,160 184 262 632 -411 826 373 676 5,899 768 1,631 367 -247 Feb.. 16,546 5,851 236 295 -89 234 759 217 686 5,929 797 1,695 294 -357 Mar.. 18,646 6,674 392 333 -52 230 1,000 206 912 6,139 964 1,709 399 -260 Apr.. 17,818 6,337 328 252 -21 250 1,015 286 683 6,093 883 1,683 323 -294 May. 17,152 6,043 358 274 94 255 707 230 752 5,858 877 1.667 361 -325 June. 19,965 8,122 185 245 -101 560 1,162 394 1,191 7,588 874 1,626 403 -2,284 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 Sept.. 18,196 5,979 303 273 336 344 947 292 924 6,169 758 1,800 287 -246 Oct... 18,791 6,106 303 266 1,134 309 1,030 272 501 6,499 833 1,418 396 -276 Nov.. 18,947 6,175 286 286 568 302 892 256 851 6,437 942 1,811 334 -343 Dec.. 17,484 6,713 181 285 852 271 875 402 722 6,444 896 1,702 473 -2,332 1972—Jan........................... 19,469 6,161 347 259 699 264 813 434 813 6,807 1,023 1,737 390 -277 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. 1973 Budget Document. Breakdowns do retirement contributions. not add to totals because special allowances for contingencies, Federal pay 3 Deposits of earnings by Federal Reserve Banks and other miscellane­ increase, and allowance for revenue sharing, totaling $2,250 million for ous receipts. fiscal 1972, and $5,000 million for fiscal 1973, 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 □ MARCH 1972 GROSS PUBLIC DEBT, BY TYPE OF SECURITY (In billions of dollars) Public issues End of period p d T g u e r o b b o t l t s a i s l c 1 Total Total Bills Ma C c r e k a r e t t e i t f s a i b ­ le Notes Bonds 2 b C v i o b e o n l r n e d t­ ­ s T N o o ta n l m 3 ark b e S o t i a n n a b g v d l s ­ s e i S ss p u e e c s i a 4 l & notes 1941—Dec. 57.9 50.5 41.6 2.0 6.0 33.6 8.9 6.1 7.0 1946—Dec. 259.1 233.1 176.6 17.0 30.0 10.1 119.5 56.5 49.8 24.6 1965—Dec. 320.9 270.3 214.6 60.2 50.2 104.2 2.8 52.9 50.3 46.3 1966—Dec. 329.3 273.0 218.0 64.7 5.9 48.3 99.2 2.7 52.3 50.8 52.0 1967—Dec. 344.7 284.0 226.5 69.9 61.4 95.2 2.6 54.9 51.7 57.2 1968—Dec. 358.0 296.0 236.8 75.0 76.5 85.3 2.5 56.7 52.3 59.1 1969—Dec. 368.2 295.2 235.9 80.6 85.4 69.9 2.4 56.9 52.2 71.0 1970—Dec. 389.2 309.1 247.7 87.9 101.2 58.6 2.4 59.1 52.5 78.1 1971—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 Oct.. 411.9 325.8 252.2 89.0 111.5 51.8 2.3 71.3 54.4 84.3 Nov. 414.6 328.4 254.5 89.8 114.0 50.7 2.3 71.6 54.7 84.4 Dec. 424.1 336.7 262.0 97.5 114.0 50.6 2.3 72.3 54.9 85.7 1972—Jan.. 422.9 336.9 261.9 97.5 114.0 50.4 2.3 72.7 55.1 84.2 Feb., 424.0 336.5 261.2 98.1 112.9 50.2 2.3 73.0 55.3 85.6 1 Includes non-interest-bearing debt (of which $624 million on Feb. 29, 1956, tax and savings notes; and before Oct. 1965, Series A investment 1972, 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 pe n r d i o o d f p T g d u r o e b o t b l s a i t s l c ag G t U e a r o n n u . v S c d s t i . t e . s B F a . n R k . s Total m C b e a o r n c m k ia ­ s l M s b a a v u n i t n u k g a s s l p I c a n a o n n s m c u ie e r ­ s ­ r c O a o t t r i h o p e n o r s ­ g S l a o o t n v c a d a t t e s l . Savi I n n g d s ividu O al t s her n F a i o t n a i r o n t e e n d i r g a ­ n l 1 i O m t n o v t i r h s e s c e s . ­ r 2 funds bonds securities 1939—Dec............... 41.9 6.1 2.5 33.4 12.7 2.7 5.7 2.0 .4 1.9 7.5 .2 .3 1946—Dec............... 259.1 27.4 23.4 208.3 74.5 11.8 24.9 15.3 6.3 44.2 20.0 2.1 9.3 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—Dec................ 389.2 97.1 62.1 229.9 62.7 2.8 7.0 10.5 23.1 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 19.1 396.8 101.8 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 Sept............... 412.3 106.5 67.6 238.2 60.0 2.8 6.5 10.0 21.0 53.7 24.1 42.4 17.7 Oct................ 411.9 104.7 67.2 240.0 60.9 2.8 6.5 11.1 20.8 54.0 23.7 42.8 17.4 Nov............... 414.6 104.7 67.8 242.1 61.5 2.7 6.5 12.0 20.6 54.2 23.4 44.1 17.1 Dec................ 424.1 106.0 70.2 247.9 65.3 2.7 6.6 12.6 20.4 54.4 23.0 46.9 16.0 1972—Jan................. 422.9 104.4 69.6 248.9 62.8 2.7 6.5 12.2 21.1 54.6 22.8 48.2 18.0 1 Consists of investments of foreign and international accounts in The debt and ownership concepts were altered beginning with the „ the United States. Mar. 1969 Bulletin. The new concepts (1) exclude guaranteed se­ 2 Consists of savings and loan assns., nonprofit institutions, cor­ curities and (2) remove from U.S. Govt, agencies and trust funds porate pension trust funds, and dealers and brokers. Also included and add to other miscellaneous investors the holdings of certain are certain Govt, deposit accounts and Govt.-sponsored agencies. Govt.-sponsored but privately owned agencies and certain Govt, 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

MARCH 1972 □ U.S. GOVERNMENT SECURITIES A 45 OWNERSHIP OF MARKETABLE SECURITIES, BY MATURITY (Par value, in millions of dollars) Within 1 year Type of holder and date Total y 1 e - a 5 rs y 5 e - a 1 r 0 s 1 y 0 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—Dec. 31........................................................ 262,038 119,141 97,505 21,636 93,648 29,321 9,530 10,397 1972—Jan. 31........................................................ 261,918 119,152 97,517 21,635 93,645 29,318 9,484 10,317 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—Dec. 31................................................ 18,444 1,380 605 775 7,614 4,676 2,319 2,456 1972—Jan. 31................................................ 18,355 1,235 565 670 7,674 4,667 2,323 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—Dec. 31................................................ 70,218 36,032 31,033 4,999 25,299 7,702 584 601 1972—Jan. 31................................................ 69,552 35,259 30,296 4,963 25,287 7,855 559 593 Held by private investors: 1968—Dec. 31................................................ 168,473 77,670 55,222 22,448 50,877 21,223 6,133 12,569 1969—Dec. 31................................................ 162,414 79,780 57,494 22,286 54,485 9,912 6,075 12,164 1970—Dec. 31................................................ 168,479 84,080 61,250 22,830 57,154 12,631 6,579 8,036 1971—Dec. 31................................................ 173,376 81,729 65,867 15,862 60,735 16,943 6,627 7,340 1972—Jan. 31................................................ 174,011 82,658 66,656 16,002 60,684 16,796 6,602 7,268 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—Dec. 31........................................ 51,363 14,920 8,287 6,633 28,823 6,847 555 217 1972—Jan. 31........................................ 49,517 13,531 7,007 6,524 28,716 6,537 533 201 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—Dec. 31........................................ 2,742 416 235 181 1,221 499 281 326 1972—Jan. 31........................................ 2,700 352 188 164 1,217 508 298 325 Insurance companies: 1968—Dec. 31........................................ 6,857 903 498 405 1,892 721 1,120 2,221 1969—Dec. 31......................................... 6,152 868 419 449 1,808 253 1,197 2,028 1970—Dec. 31......................................... 6,066 893 456 437 1,723 849 1,369 1,231 1971—Dec. 31........................................ 5,679 720 325 395 1,499 993 1,366 1,102 1972—Jan. 31......................................... 5,605 656 289 367 1,482 1,005 1,371 1,091 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—Dec. 31........................................ 6,021 4,191 3,280 911 1,492 301 16 20 1972—Jan. 31........................................ 5,654 3,954 3,206 748 1,339 315 20 26 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—Dec. 31........................................ 3,002 629 343 286 1,449 587 162 175 1972 Jan. 31........................................ 3,129 713 416 297 1.443 646 148 180 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—Dec. 31........................................ 9,823 4,592 3,832 760 2,268 783 918 1,263 1972—Jan. 31........................................ 10.231 5,123 4.398 725 2.095 793 910 1.310 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—Dec. 31........................................ 94,746 56,261 49,565 6,696 23,983 6,933 3,329 4,237 1972—Jan. 31........................................ 97,175 58,329 51,152 7,177 24,392 6,992 3,322 4,135 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 5,656 commercial banks, 486 mutual savings agencies and certain Govt, deposit accounts have been removed from U.S. banks, and 738 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 o MARCH 1972 DEALER TRANSACTIONS (Par value, in millions of dollars) U.S. Government securities By maturity By type of customer U.S. Govt. Period agency Total Dealers and brokers securities Within 1-5 5-10 Over Com­ All 1 year years years 10 years mercial other U.S. Govt, Other banks securities 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 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 Sept.............................. 2,115 1,598 271 219 26 759 99 725 532 482 Oct............................... 2,646 1,905 438 268 36 988 117 906 634 659 Nov.............................. 2,691 1,668 523 418 81 906 157 940 687 547 Dec............................... 3,139 2,317 497 266 58 1 ,006 214 1,190 730 569 1972—Jan................................ 3,191 2,268 571 309 44 879 391 1 ,120 801 623 Week ending— 1972—Jan. 5....................... 3,289 2,579 375 261 72 918 257 1 ,299 815 565 12....................... 4,046 2,843 771 374 57 1,132 483 1 ,446 985 754 19....................... 2,675 1 ,840 475 321 39 730 317 924 705 513 26....................... 2,343 1 ,778 368 162 36 675 324 783 561 595 Feb. 2....................... 3,789 2,389 934 439 27 994 549 1,307 939 609 9....................... 3,067 2,198 638 205 26 941 368 1 ,018 741 515 16....................... 3,603 2,456 806 310 31 1 ,114 337 1 ,251 901 735 23....................... 3,008 2,133 626 219 31 829 333 1 ,043 804 631 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 U.S. Period m t A a ie t l u s l ri­ W y i e t 1 a h r in y 1 e - a 5 rs y 5 e - a 1 r 0 s y O e 1 v a 0 e rs r a s G e g t c e i o e u n v s r c t i . y ­ Period so A ur l c l es Y N C o e it r w y k w E h ls e e r ­ e C t o io rp n o s r 1 a­ o A th l e l r 1971--Jan.. 5,634 4,626 525 403 80 966 1971- 6,198 1,888 1,695 527 2,088 Feb , 4,655 3,320 569 691 75 946 Feb., 5,684 1,673 1,318 369 2,324 Mar., 4,421 3,511 437 404 70 981 4,543 1,356 926 399 1,862 Apr. 4,870 4,019 415 416 20 1,118 5,700 1,759 1,415 724 1,802 May. 2,646 2,115 189 331 11 818 May. 3,389 1,095 475 517 1,301 June. 2,735 2,477 116 130 12 776 June. 3,163 1,061 523 435 1,145 July. 3,011 3,018 -23 26 -11 771 3,516 1,151 391 721 1,254 Aug.. 2,897 2,473 344 70 11 698 3,071 894 390 821 967 Sept. 3,856 3,089 355 377 36 926 4,146 1,049 856 811 1,430 Oct.. 4,353 3,612 394 310 37 903 4,511 1,188 704 921 1,699 5,846 3,725 914 943 265 1,063 6,455 1,877 932 1,564 2,082 Dec.. 5,335 3,877 626 600 232 1,101 5,517 1,375 912 1,659 1,571 1972--Jan.. 5,561 4,665 437 365 94 847 1972- 5,714 1 ,296 904 1 ,750 1 ,763 Weekending— Weekending— 1971--Dec. 1 6,120 4,379 746 751 244 1,153 1971--Dec. 1 . .. 5,852 1,547 901 1,552 1,852 8........ 5,213 3,702 636 640 235 1 ,123 8. .. 5,852 1,558 968 1,713 1,614 15 5,157 3,781 576 567 232 1 ,056 15. .. 5,277 1,419 777 1 ,646 1 ,434 22........ 5,097 3,625 674 555 243 1,059 22. .. 5,382 1,318 1,034 1 ,627 1,404 29........ 5,775 4,328 623 592 231 1,163 29. .. 5,326 1,126 841 1,662 1 ,696 1972--Jan. 5 , . 5,567 4,312 513 573 169 1,042 1972—-Jan. 5. .. 5,984 1,512 806 1,759 1,907 12 5,189 4,134 477 467 110 779 12. .. 5,276 979 709 1,729 1,860 19........ 5,708 4,807 432 397 72 743 19. .. 5,881 1,173 874 1,791 2,043 5,721 4,933 443 268 77 960 26. .. 5,846 1,494 1,070 1 ,781 1,501 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

MARCH 1972 □ GOVERNMENT SECURITIES A 47 U.S. GOVERNMENT MARKETABLE AND CONVERTIBLE SECURITIES, FEBRUARY 29, 1972 (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 Mar, 1972.. 3.901 July 27, 1972___ 1,603 Aug. 15, 1973.... .8H 1,839 June 15, 1967--72..2% 1,227 Mar. 1972.. 3.903 July 31, 1972.... 1,703 Oct. 1, 1973....■ iVi 30 Sept. 15, 1967--72..2% 1,951 Mar. 16 1972.. 3.901 Aug. 3,1972.... 1,600 Feb. 15, 1974 ,,, .7% 2,960 Dec. 15, 1967--72..2% 2,552 Mar. 23 1972.. 3,910 Aug. 10, 1972.. .. 1,600 Apr. 1, 1974 • 1% 34 Feb. 15, 1972 4 980 Mar. 30 1972.. 3.903 Aug. 17, 1972.... 1,801 May 15, 1974 ,,, .71/4 4,333 Aug. 15, 1972, .4 1 ,455 Mar. 31 1972.. 1.701 Aug. 24, 1972.... 1,803 Aug. 15, 1974 • 55/s 10,284 Aug. 15, 1973 .4 3,894 Apr. 6 1972.. 3.901 Aug. 31, 1972.... 1,700 Oct. 1, 1974 ■ IVi 42 Nov. 15, 1973, •41/s 4,341 Apr. 13 1972.. 3.903 Sept. 30, 1972.... 1,702 Nov. 15, 1974 . ,•5% 7,212 Feb. 15, 1974 • 41/s 2,472 Apr. 20 1972.. 3.901 Oct. 31, 1972.... 1,700 Feb. 15, 1975, ..534 5,148 May 15, 1974 .41/4 2,855 Apr. 21 1972f. 4,033 Nov. 30, 1972.... 1,701 Feb. 15, 1975 •57/s 2,045 Nov. 15, 1974 .3% 2,237 Apr. 27 1972.. 3.902 Dec. 31, 1972.... 1,200 Apr. 1, 1975 ■ IVi 8 May 15, 1975--85..41/4 1,209 Apr. 30 1972.. 1.702 Jan. 31,1973.... 1,200 May 15, 1975.... .6 6,760 June 15, 1978--83..31/4 1,522 May 4 1972.. 3.902 Feb. 28, 1973.... 1,200 Aug. 15, 1975,. ,• 5% 7,679 Feb. 15, 1980 4 2,586 May 11 1972.. 3,901 Oct. 1, 1975, av2 30 Nov. 15, 1980 .3% 1,901 May 18 1972.. 4,007 Nov. 15, 1975.... .7 3,115 Aug. 15, 1981 .7 807 May 25 1972.. 4,001 Feb. 15, 1976,, ,.6V4 3,739 Feb. 15, 1982 .63/8 2,193 May 31 1972.. 1.701 Treasury notes Apr. 1, 1976 .W2 27 May 15, 1985 .31/4 1,030 June 1 1972.. 1,601 Apr. 1, 1972........1V2 34 May 15, 1976.......534 2,784 Nov. 15, 1986 .61/8 1,216 June 8 1972.. 1,601 May 15, 1972........4% 3,676 May 15, 1976.....61/2 2,697 Aug. 15, 1987--92..41/4 3,789 June 15 1972.. 1,600 May 15, 1972........6V4 1,378 Aug. 15, 1976. .,. .71/2 4,194 Feb. 15, 1988--93..4 244 June 21 1972|. 3,026 Aug. 15, 1972........5 2,572 Oct. 1, 1976. .,. .11/2 7 May 15, 1989--94.• 41/s 1 ,539 June 22 1972.. 1,602 Oct. 1. 1972........1V2 33 Nov. 15, 1976 ■6V4 1,283 Feb. 15, 1990 .31/2 4,481 June 29 1972.. 1,601 Nov. 15, 1972........6 2,285 Feb. 15, 1977 8 5,163 Feb. 15, 1995 3 1,073 June 30 1972.. 1.701 Feb. 15, 1973........6% 2,514 Aug. 15, 1977.....73/4 2,264 Nov. 15, 1998 .31/2 3,608 July 6 1972.. 1,601 Feb. 15, 1973........4% 4,268 Feb. 15, 1978 .6*4 8,389 July 13 1972.. 1 ,600 Apr. 1, 1973........n/2 34 Nov. 15, 1978.... 8,208 Convertiblebonds July 20 1972.. 1,601 May 15, 1973........7% 5,844 Investment Series B Apr. 1, 1975-80..23^ 2,316 t Tax-anticipation series. Note.—Direct public issues only. Based on Daily Statement of U.S. Treasury. NEW ISSUES OF STATE AND LOCAL GOVERNMENT SECURITIES (In millions of dollars) All issues (new capital and refunding) Issues for new capital Type of issue Type of issuer Total Use of proceeds Period amount deliv­ Special ered 3 Total G o e b a n l l e i­ r­ R n e u v e e­ HAA1 G l U o o a . v S n t . s . State di s a s t n t a r d t i . ct Other2 Total c E at d i u o ­ n b R r a i o d n a g d d e s s i U ti t e i s l­ 4 H in o g u s s­ V a a e n i t d e s r ’ ­ O p p o t u h s r e e ­ s r gations auth. 1964, 10,847 6,417 3,585 637 208 1,628 3,812 5,407 10,069 10,201 3,392 688 2,437 727 120 2,838 1965. 11,329 7,177 3,517 464 170 2,401 3,784 5,144 11,538 10,471 3,619 900 1,965 626 50 3,311 1966 11,405 6,804 3,955 325 312 2,590 4,110 4,695 11,303 3,738 1,476 1,880 533 3,667 1967 14,766 8,985 5,013 477 334 2,842 4,810 7,115 14,643 4,473 1,254 2,404 645 5,867 1968 16,596 9,269 6,517 528 282 2,774 5,946 7,884 16,489 4,820 1,526 2,833 787 6,523 1969 11,881 7,725 3,556 402 197 3,359 3,596 4,926 11,838 3,252 1 ,432 1,734 543 4,884 1970 18,164 11,850 6,082 131 103 4,174 5,595 8,399 18,110 5,062 1,532 3,525 466 7,526 1971, 24,962 15,220 8,681 1,000 62 5,999 8,714 10,246 24,495 5,278 2,642 5,214 2,068 9,293 1971--Jan.. .. 2,732 1,613 997 121 2 577 1,156 999 2,721 509 390 436 373 1,013 Feb.... 1,851 1,225 619 7 585 627 639 1,835 520 133 315 123 743 Mar. .. 2,258 1,309 949 1 447 660 1,152 2,244 570 183 702 28 762 Apr__ 1,891 1,305 581 5 430 510 952 1,841 491 66 471 19 795 May.. . 2,167 1,091 869 197 10 486 1,095 585 2,159 625 448 433 222 430 June... 2,013 1,320 684 8 779 337 896 2,004 385 394 699 14 512 July. .. 1,989 1,306 506 171 5 477 606 905 1,942 301 120 231 219 1,071 Aug. . . 1,903 1,141 754 9 459 735 707 1,894 352 158 377 159 846 Sept. . . 2,098 1,313 523 258 3 348 706 1,044 2,053 463 65 458 271 796 Oct.. .. 1,728 836 890 3 341 840 548 1,626 291 210 353 96 678 Nov. . . 2,264 1,394 869 1 629 874 761 2,134 418 338 500 246 631 Dec.... 2,068 1,367 440 253 8 441 568 1,058 2,042 353 137 239 298 1,016 1972--Jan---- 1,762 1,116 644 2 639 543 578 1,690 383 146 437 56 668 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 □ MARCH 1972 TOTAL NEW ISSUES (In millions of dollars) Gross proceeds, all issues1 Noncorporate Corporate Period Bonds Stock Total U.S. G U o .S vt . , an S d t a lo te c al Other5 Total Govt.2 agency 3 (U.S.)4 Total P o u f b fe li r c e l d y P p ri l v a a c t e e d ly Preferred Common 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 1970r................... 88,666 14,831 16,181 17,762 949 38,945 30,315 25,384 4.931 1 ,390 7,240 1971.................... 105,233 17,325 16,283 24,370 2,165 45,090 32,123 24,775 7,354 3,670 9,291 1970—Dec.......... 7,652 402 924 2,245 100 3,982 3,322 2,436 886 170 490 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.......... 7,244 467 700 1 ,859 177 4,042 2,623 2,116 507 537 882 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.......... 9,316 1,153 2,049 1,951 17 4,147 1,951 1,331 619 1,527 669 Aug.......... 9,346 3,228 1,500 1,850 237 2,532 1,844 1,428 416 270 418 Sept......... 9,445 1,698 1,774 2,044 161 3,768 2,573 1,966 607 165 1,031 Oct.r........ 8,353 412 2.169 1,882 113 3,777 2,694 2,390 304 180 903 Nov.r... . 9,040 2,414 750 1,684 10 4,182 3,283 3,000 283 124 774 Dec.......... 7,651 402 924 2,245 100 3,980 3,270 2,436 834 168 541 Gross proceeds, major groups of corporate issuers Period Manufacturing Commercial and Transportation Public utility Communication Real estate miscellaneous and financial Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks Bonds Stocks 1964.............................................. 2,819 228 902 220 944 38 2,139 620 669 1,520 3,391 466 1965.............................................. 4,712 704 1,153 251 953 60 2,332 604 808 139 3,762 514 1966.............................................. 5,861 1,208 1,166 257 1,856 116 3,117 549 1,814 189 1,747 193 1967.............................................. 9,894 1,164 1,950 117 1,859 466 4,217 718 1,786 193 2,247 186 1968.............................................. 5,668 1,311 1,759 116 1,665 1,579 4,407 873 1,724 43 2,159 662 1969.............................................. 4,448 1,904 1,888 3,022 1,899 247 5,409 1,326 1,963 225 2,739 1 ,671 1970r............................................ 9,192 1,320 1,963 2,540 2,213 47 8,016 3,001 5,053 83 3,878 11,638 1971.............................................. 9,426 2,152 2,272 2,390 1,998 420 7,605 4,195 4,227 1,592 6,601 2,212 1970—Dec.................................... 933 123 221 142 332 12 725 230 271 5 840 148 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 52 834 204 819 316 198 243 268 67 607 660 247 26 484 107 631 158 143 131 250 89 447 141 403 2 763 113 June................................... 1,031 175 497 290 182 115 616 439 204 14 513 300 July.................................... 383 200 159 188 157 62 520 212 232 1,390 500 144 Aug.................................... 262 212 76 175 76 12 687 162 359 385 126 991 154 123 295 120 29 578 492 235 *' ‘ m ' 525 179 Oct r................................. 571 91 150 172 185 5 703 230 432 624 224 Novr................................. 637 174 61 232 145 6 672 545 261 9 660 303 Dec.................................... 687 293 246 127 199 33 520 371 311 42 510 335 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

MARCH 1972 □ SECURITY ISSUES A 49 NET CHANGE IN OUTSTANDING CORPORATE SECURITIES (In millions of dollars) Derivation of change, all issuers1 Period All securities Bonds and notes Common and preferred stocks New issues Retirements Net change New issues Retirements Net change New issues Retirements Net change 1966....................... 19,799 7,541 12,258 15,629 4,542 11,088 4,169 3,000 1,169 1967....................... 25,964 7,735 18,229 21,299 5,340 15,960 4,664 2,397 2,267 1968....................... 25,439 12,377 13,062 19,381 5,418 13,962 6,057 6,959 -900 1969....................... 28,841 10,813 18,027 19,523 5,767 13,755 9,318 5,045 4,272 1970....................... 38,707 9,079 29,628 29,495 6,667 22,825 9,213 2,411 6,801 1970—III.............. 9,385 2,089 7,297 7,598 1,546 6,051 1,788 542 1,245 IV............... 11,936 2,577 9,359 9,034 2,069 6,964 2,902 508 2,394 1971—1.................. 11,241 2,015 9,226 8,765 1,776 6,989 2,476 239 2,237 II'.............. 13,212 2,979 10,233 8,974 2,681 6,294 4,238 299 3,939 Ill.............. 10,746 1,992 8,754 6,159 1,649 4,510 4,586 343 4,244 Type of issuer Manu­ Commercial Transpor­ Public Communi­ Real estate Period facturing and other 2 tation 3 utility cation and financial 1 & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B n o o n t d e s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks & B o n n o d te s s Stocks 1966....................... 4,324 32 616 -598 956 718 2,659 533 1,668 575 864 -90 1967....................... 7,237 832 1,104 282 1,158 165 3,444 652 1,716 467 1,302 -130 1968....................... 4,418 -1,842 2,242 821 987 -149 3,669 892 1,579 120 1,069 -741 1969....................... 3,747 69 1,075 1,558 946 186 4,464 1,353 1,834 241 1,687 866 1970....................... 6,641 870 853 1,778 1,104 36 6,861 2,917 4,806 94 2,564 1,107 1970—III............... 2,169 39 263 326 21 -15 1,917 750 991 6 691 139 IV............... 2,054 374 407 404 428 58 1,777 1,189 1,135 51 1,165 318 1971—1................. 2,076 520 201 416 271 33 1,897 948 1,194 66 1,349 255 II'.............. 2,296 885 446 757 461 374 1,347 1,261 919 38 825 624 Ill.............. 852 676 -10 678 195 230 1,493 814 832 1,442 1,148 404 1 Excludes investment companies. exclude foreign sales and include sales of securities held by affiliated com* 2 Extractive and commercial and miscellaneous companies. panies, special offerings to employees, and also new stock issues and cash 3 Railroad and other transportation companies. proceeds connected with conversions of bonds into stocks. Retirements are defined in the same way and also include securities retired with in- Note.—Securities and Exchange Commission estimates of cash trans- ternal funds or with proceeds of issues for that purpose, actions only. As contrasted with data shown on opposite page, new issues OPEN-END INVESTMENT COMPANIES (In millions of dollars) Sales and redemption Assets (market value Sales and redemption Assets (market value of own shares at end of period) of own shares at end of period) Year Month Sales 1 Redemp­ Net Total 2 Cash Other Sales i Redemp­ Net Total 2 Cash Other tions sales position 3 tions sales position 3 1960.............. 2,097 842 1,255 17,026 973 16,053 1971—Jan.. . 487 242 245 50,251 3,663 46,588 Feb.. . 349 322 27 51,300 3,600 47,700 1961.............. 2,951 1,160 1,791 22,789 980 21,809 Mar... 468 425 43 53,618 3,328 50,290 1962.............. 2,699 1,123 1,576 21,271 1,315 19,956 Apr... 547 394 153 55,883 3,046 52,837 1963.............. 2,460 1,504 952 25,214 1,341 23,873 May.. 307 428 -121 53,610 2,607 51,003 June.. 434 467 -33 53,560 2,830 50,730 1964.............. 3,404 1,875 1,528 29,116 1,329 27,787 July... 371 444 -73 51,424 2,856 48,568 1965.............. 4,359 1,962 2,395 35,220 1.803 33,417 Aug... 432 394 38 53,798 3,016 50,782 1966.............. 4,671 2,005 2,665 34,829 2,971 31,858 Sept... 304 471 -167 53,291 2,511 50,780 Oct.... 596 419 177 51,160 2,885 48,275 1967.............. 4,670 2,745 1,927 44,701 2,566 42,135 Nov... 397 334 63 50,958 3,172 47,786 1968.............. 6,820 3,841 2,979 52,677 3,187 49,490 Dec... 453 411 42 55,045 3,038 52,007 1969.............. 6,717 3,661 3,056 48,291 3,846 44,445 1972—Jan.... 521 475 46 56,694 3,163 53,531 1970.............. 4,624 2,987 1,637 47,618 3,649 43.969 1971.............. 5,145 4,751 774 56,694 3,163 53,531 1 Includes contractual and regular single purchase sales, voluntary and 3 Cash and deposits, receivables, all U.S. Govt, securities, and other contractual accumulation plan sales, and reinvestment of investment in- short-term debt securities, less current liabilities. come dividends; excludes reinvestment of realized capital gains dividends. 2 Market value at end of period less current liabilities. Note.—Investment Company Institute data based on reports of mem­ 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 □ MARCH 1972 SALES, PROFITS, AND DIVIDENDS OF LARGE CORPORATIONS (In millions of dollars) 1968 19691 Industry 1965 1966 1967 1968 1969 I II III IV I II III IV Manufacturing Total (177 corps.): Sales.............................................. 177,237195,738201,399225,740243,449 53,633 57,732 53,987 60,388 57,613 61 ,392 61,061 63,383 Profits before taxes....................... 22,046 23,487 20,898 25,375 25,622 5,985 6,878 5,580 6,932 6,565 6,887 5,851 6,319 Profits after taxes......................... 12,461 13,307 12,664 13,787 14,090 3,298 3,609 3,030 3,850 3,579 3,750 3,244 3,517 Dividends...................................... 6,527 6,920 6,989 7,271 7,757 1,716 1,731 1,746 2,078 1,838 1,916 1,885 2,118 Nondurable goods industries (78 corps.):2 Sales.............................................. 64,897 73,643 77,969 84,861 92,033 20,156 21,025 21,551 22,129 21,764 23,198 23,445 23,626 Profits before taxes...................... 7,846 9,181 9,039 9,866 10,333 2,387 2,492 2,545 2,442 2,524 2,664 2,641 2,504 Profits after taxes......................... 4,786 5,473 5,379 5,799 6,103 1,428 1,411 1,471 1,489 1,492 1,559 1,529 1,523 Dividends...................................... 2,527 2,729 3,027 3,082 3,289 743 751 763 825 812 808 820 849 Durable goods industries (99 corps.):3 Sales.............................................. 112,341 122,094123,429 140,879 151,416 33,477 36,707 32,435 38,259 35,849 38,195 37,616 39,756 Profits before taxes....................... 14,200 14,307 11,822 15,510 15,290 3,598 4,386 3,036 4,490 4,041 4,224 3,210 3,815 Profits after taxes......................... 7,675 7,834 6,352 7,989 7,989 1,871 2,198 1,559 2,361 2,087 2,190 1,715 1,997 Dividends...................................... 4,000 4,191 3,964 4,189 4,469 972 981 983 1,253 1,026 1,108 1,065 1,270 Selected industries: Foods and kindred products (25 corps.): Sales............................................ 16,427 19,038 20,134 22,1 9 24,593 5,184 5,389 5,737 5,799 5,714 5,923 6,631 6,325 Profits before taxes..................... 1,710 1,916 1,967 2,227 2,425 498 563 590 576 534 581 666 644 Profits after taxes....................... 896 1,008 1,041 1,093 1,171 255 260 285 293 261 275 314 321 Dividends.................................... 509 564 583 616 661 150 155 155 156 162 165 164 170 Chemical and allied products (20 corps.): Sales............................................ 18,158 20,007 20,561 22,808 24 494 5,436 5,697 5,782 5,893 5,845 6,230 6,236 6,183 Profits before taxes..................... 2,891 3,073 2,731 3,117 3,258 760 807 806 744 844 875 818 721 Profits after taxes....................... 1,630 1,737 1,579 1,618 1,773 390 419 412 398 448 473 441 411 Dividends.................................... 926 948 960 1,002 1,031 236 236 243 287 252 251 254 274 Petroleum refining (16 corps.): Sales............................................ 17,828 20,887 23,258 24,218 25,586 5,890 6,013 6,100 6,214 6,107 6,610 6,264 6,605 Profits before taxes..................... 1,962 2,681 3,004 2,866 2,941 767 692 740 667 726 728 750 737 Profits after taxes....................... 1,541 1,898 2,038 2,206 2,224 592 520 561 534 562 558 554 550 Dividends.................................... 737 817 1,079 1,039 1,123 253 255 258 273 282 273 282 286 Primary metals and products (34 corps.): Sales............................................ 26,548 28,558 26,532 30,171 33,674 7,150 8,427 7,461 7,133 7,671 8,612 8,448 8,943 Profits before taxes..................... 2,931 3,277 2,487 2,921 3,052 669 915 601 735 691 828 715 818 Profits after taxes....................... 1,689 1,903 1,506 1,750 1,912 376 550 343 482 431 504 435 542 Dividends.................................... 818 924 892 952 987 224 230 233 264 242 245 247 253 Machinery (24 corps.): Sales............................................ 25,364 29,512 32,721 35,660 38,719 8,371 8,864 8,907 9,517 8,957 9,757 10,542 9,463 Profits before taxes..................... 3,107 3,612 3,482 4,134 4,377 936 1,008 1,112 1,079 1,071 1,167 1,141 998 Profits after taxes....................... 1,626 1,875 1,789 2,014 2,147 448 499 537 531 526 576 568 477 Dividends.................................... 774 912 921 992 1,128 247 248 248 249 270 271 293 294 Automobiles and equipment (14 corps.): Sales............................................. 42,712 43,641 42,306 50,526 52,290 12,343 13,545 9,872 14,767 13,328 13,638 11,300 14,024 Profits before taxes..................... 6,253 5,274 3,906 5,916 5,268 1,507 1,851 640 1,918 1 ,663 1,542 652 1,411 Profits after taxes....................... 3,294 2,877 1,999 2,903 2,604 783 847 330 943 806 750 342 706 Dividends.................................... 1,890 1,775 1,567 1,642 1,723 364 364 364 550 365 436 366 556 Public utility Railroad: Operating revenue....................... 10,208 10,661 10,377 10,859 11,451 2,611 2,758 2,708 2,782 2,741 2,916 2,836 2,958 Profits before taxes....................... 979 1,094 385 678 683 127 206 149 196 128 220 149 186 Profits after taxes......................... 815 906 319 565 461 112 174 110 169 98 173 98 92 Dividends...................................... 468 502 538 515 488 117 132 100 166 116 136 100 136 Electric power: Operating revenue....................... 15,816 16,959 17,954 19,421 21,075 5,106 4,553 4,869 4,892 5,480 4,913 5,370 5,312 Profits before taxes...................... 4,213 4,414 4,547 4,789 4,938 1,351 1,040 1,271 1,125 1,384 1,065 1,366 1,123 Profits after taxes......................... 2,586 2,749 2,908 3,002 3,186 863 641 764 733 873 707 827 779 Dividends...................................... 1,838 1,938 2,066 2,201 2,299 539 555 543 565 580 577 561 581 Telephone: Operating revenue....................... 11,320 12,420 13,311 14,430 16,057 3,486 3,544 3,629 3,771 3,853 3,975 4,044 4,185 Profits before taxes...................... 3,185 3,537 3,694 3,951 4,098 971 989 990 1,001 1,070 1,043 979 1,006 Profits after taxes......................... 1,718 1,903 1,997 1,961 2,080 525 441 493 502 540 523 497 520 Dividends...................................... 1,153 1,248 1,363 1,428 1,493 351 318 396 363 368 371 373 381 1 Manufacturing figures reflect changes by a number of companies in profits before taxes are partly estimated by the Federal Reserve to include accounting methods and other reporting procedures. affiliated nonelectric operations. 2 Includes 17 corporations in groups not shown separately. Telephone: Data obtained from Federal Communications Commis­ 3 Includes 27 corporations in groups not shown separately. sion on revenues and profits for telephone operations of the Bell System Consolidated (including the 20 operating subsidiaries and the Long Note.—Manufacturing corporations: Data are obtained primarily from Lines and General Depts. of American Telephone and Telegraph Co.) published reports of companies. and for two affiliated telephone companies. Dividends are for the 20 Railroad: Interstate Commerce Commission data for Class I line- operating subsidiaries and the two affiliates. haul railroads. All series: Profits before taxes are income after all charges and before Electric power: Federal Power Commission data for Class A and B Federal income taxes and dividends. electric utilities, except that quarterly figures on operating revenue and Back data available from the Division of Research and Statistics. Series have been temporarily discontinued. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BUSINESS FINANCE A 51 CORPORATE PROFITS, TAXES, AND DIVIDENDS (In billions of dollars) Corporate Corporate Year P b t e r a o f x o f e i r s t e s c ta o I x n m e ­ e s P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a n a l t s l i p o o u i w n t m a l ­ p ­ Quarter P b t r e a o f x o f e i r s t e s c ta o I x n m e ­ s e P t a r a f o x t f e e i r s ts d C d e i a n v s d i h ­ s t U r p i r b n o u d f t i i e t s s d ­ co c a t n a l i s l o p o u n i w t m a ­ l p ­ ances 1 ances i 1964. 66.8 28.3 38.4 17.8 20.6 33.9 1970—I.... 75.6 34.1 41.5 25.0 16.6 54.4 1965. 77.8 31.3 46.5 19.8 26.7 36.4 11... 75.8 34.5 41.3 24.9 16.4 55.7 1966. 84.2 34.3 49.9 20.8 29.1 39.5 111... 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 1971—1. 83.0 38.3 44.8 25.6 19.2 59.4 1969. 84.2 39.7 44.5 24.4 20.0 51.3 II . . . 86.9 39.1 47.8 25.4 22.4 61.0 1970. 75.4 34.1 41.2 25.0 16.2 56.2 111... 85.8 37.5 48.2 25.7 22.5 62.7 1971 p 85.2 37.7 47.4 25.5 21.9 61.9 1 Includes depreciation, capital outlays charged to current accounts, and Note.—Dept, of Commerce estimates. Quarterly data are at seasonally accidental damages. adjusted annual rates. CURRENT ASSETS AND LIABILITIES OF CORPORATIONS (In billions of dollars) Current assets Current liabilities Net Notes and accts. Notes and accts. End of period working U.S. receivable payable Accrued capital Total Cash s G ec o u v r t i . ­ I t n o v ri e e n s ­ Other Total F in e c d o e m ra e l Other ties U.S. Other U.S. Other taxes Govt.1 Govt.1 196 4 170.0 372.2 47.3 18.6 3.4 169.9 113.5 19.6 202.2 2.7 140.3 17.0 42.2 196 5 180.7 410.2 49.9 17.0 3.9 190.2 126.9 22.3 229.6 3.1 160.4 19.1 46.9 196 6 188.2 442.6 49.3 15.4 4.5 205.2 143.1 25.1 254.4 4.4 179.0 18.3 52.8 196 7 198.9 470.4 54.1 12.7 5.1 216.0 153.4 29.0 271.4 5.8 190.6 14.1 60.8 196 8 212.0 513.8 58.0 14.2 5.1 237.1 165.8 33.6 301.8 6.4 209.8 16.4 69.1 196 9 213.2 555.9 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 III 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 Ill 231.3 591.9 59.8 10.6 3.9 276.9 199.5 41.2 360.6 5.2 242.2 18.7 94.7 1 Receivables from, and payables to, the U.S. Govt, exclude amounts Note.—Securities and Exchange Commission estimates; excludes offset against each other on corporations’ books. banks, savings and loan assns., insurance companies, and investment companies. BUSINESS EXPENDITURES ON NEW PLANT AND EQUIPMENT (In billions of dollars) Manufacturing Transportation Public utilities Period Total Durable du N r o ab n l ­ e Mining R ro a a i d l­ Air Other Electric and G a o s th er n C i o ca m ti m on u s ­ Other1 T A (S o . . R A ta . . ) l 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 14.06 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 1971....................... 81.21 14.15 15.84 2.16 1.67 1.88 1.38 12.86 2.44 10.77 18.05 1972 2 '................. 89.77 16.11 16.50 2.20 1.75 2.42 1.55 14.58 2.86 12.30 19.51 1970—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 Ill............... 20.14 3.40 3.91 .55 .42 .39 .37 3.35 .71 2.62 4.42 80.75 IV................ 22.79 4.12 4.32 .59 .45 .56 .37 3.60 .69 2.84 5.26 83.18 1972—1 2 r............ 19.56 3.43 3.60 .53 .45 .52 .35 3.15 .45 7.08 87.54 II2.............. 22.49 4.01 4.15 .54 .42 .78 .35 3.60 .72 7.92 89.09 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 □ MARCH 1972 MORTGAGE DEBT OUTSTANDING (In billions of dollars) All properties Farm Nonfarm ho O l t d h e e r r s2 1- to 4-family houses4 com M m u e l r t c if ia a l m p il r y o p a e n r d ti es5 M t o y r p tg e a 6 ge E pe n r d i o o d f h A e o r l l s d l ­ tu F i t n c i i n i s o a a t n l i n ­ s ­ 1 a U c g i . e e S n s . ­ v o I i a t d n h n u d e d a i r ­ l s s h A e o r l l s d l ­ tu F i t n i c i n i o s a a t n l i n s ­ ­ 1 O h e o t r h l s d e 3 ­ r h A e o r l l s d l ­ Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d e ­ r Total tu F i t n i i n o s a t n i n ­ s . 1 O h e o t r h l s d er ­ F w u H V n ri d A A t e te - — r n - t C i v o e o n n n a ­ ­ l 1941 37.6 20.7 4.7 12.2 6.4 1.5 4.9 31.2 18.4 11.2 7.2 12.9 8.1 4.8 3.0 28.2 1945 35.5 21.0 2.4 12.1 4.8 1.3 3.4 30.8 18.6 12.2 6.4 12.2 7.4 4.7 4.3 26.5 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 93.4 276.6 1969—1.... 403.7 324.7 22.6 56.4 28.1 9.8 18.3 375.7 254.8 216.0 38.8 120.9 98.9 21.9 94.5 281.2 II. .. 411.7 331.0 23.4 57.1 28.8 10.1 18.7 382.9 259.5 219.9 39.5 123.4 101.0 22.4 96.6 286.2 III.. 418.7 335.7 24.9 58.1 29.2 10.1 19.1 389.5 263.4 222.5 40.9 126.0 103.1 22.9 98.5 291.0 IV.. 425.3 339.1 26.8 59.4 29.5 9.9 19.6 395.9 266.8 223.6 43.2 129.0 105.5 23.5 100.2 295.7 1970—I.... 429.4 340.7 28.6 60.1 29.8 9.8 20.0 399.6 268.5 223.8 44.7 '131.1 107.1 23.9 101.9 297.6 II... 435.6 344.5 30.0 61.1 30.3 9.8 20.5 405.2 271.7 225.7 46.0 133.5 109.1 24.5 103.2 302.0 III.. 443.4 349.7 31.7 61.9 30.8 10.0 20.8 412.5 276.0 228.5 47.5 136.5 111.4 25.1 106.8 305.7 IV.. 451.7 355.9 33.0 62.8 31.2 10.1 21.1 420.5 280.2 231.4 48.8 140.3 114.6 25.7 109.2 311.3 1971— I.... 459.0 361.8 33.6 63.6 31.8 10.1 21.7 427.2 283.6 234.5 49.4 143.6 117.5 26.1 111.0 316.2 II... 471.1 372.0 35.2 63.9 31.9 9.7 22.2 439.3 290.8 240.7 49.5 148.5 121.9 26.6 114.4 324.9 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 Note.—Based on data from Federal Deposit Insurance Corp., Federal U.S. sponsored agencies—new FNMA, Federal land banks, GNMA Home Loan Bank Board, Institute of Life Insurance, Depts. of Agricul­ (Pools), and the FHLHC. Other U.S. agencies (amounts small or sep­ ture and Commerce, Federal National Mortgage Assn., Federal Housing arate data not readily available) included with “individuals and others.” Admin., Public Housing Admin., Veterans Admin., Government National 3 Derived figures; includes debt held by Federal land banks and farm Mortgage Assoc., Federal Home Loan Mortgage Corp., and Comptroller debt held by Farmers Home Admin. of the Currency. 4 For multifamily and total residential properties, see p. A-54. Figures for first three quarters of each year are F.R. estimates. MORTGAGE LOANS HELD BY BANKS (In millions of dollars) Commercial bank holdings 1 Mutual savings bank holdings2 Residential Residential End of period Other Other Total non­ Farm Total non­ Farm FHA- VA- Con­ farm FHA- VA- Con­ farm Total in- guar- ven­ Total in- guar- ven­ sured anteed tional sured anteed tional 1941............................... 4,906 3,292 1 ,048 566 4,812 3,884 900 28 1945............................... 4,772 3,395 856 521 4,208 3,387 797 24 1964............................... 43,976 28,933 7,315 2,742 18,876 12,405 2,638 40,556 36,487 12,287 11,121 13,079 4,016 53 1965............................... 49,675 32,387 7,702 2,688 21,997 14,377 2,911 44,617 40,096 13,791 11,408 14,897 4,469 52 1966............................... 54,380 34,876 7,544 2,599 24,733 16,366 3,138 47,337 42,242 14,500 11,471 16,272 5,041 53 1967............................... 59,019 37,642 7,709 2,696 27,237 17,931 3,446 50,490 44,641 15,074 11,795 17,772 5,732 117 1968............................... 65,696 41,433 7,926 2,708 30,800 20,505 3,758 53,456 46,748 15,569 12,033 19,146 6,592 117 1968—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 Ill...................... 70,336 44,331 8,065 2,793 33,470 21 ,924 4,081 55,359 48,189 15,813 12,169 20,207 7,053 117 IV....................... 70,705 44,573 7,960 2,663 33,950 22,113 4,019 56,138 48,682 15,862 12,166 20,654 7,342 114 1970—1......................... 70,854 44,568 7,888 2,496 34,184 22,248 4,038 56,394 48,874 15,865 12,105 20,904 7,413 107 II........................ 71,291 44,845 7,800 2,575 34,469 22,392 4,054 56,880 49,260 15,931 12,092 21,237 7,519 101 Ill...................... 72,393 45,318 7,885 2,583 34,850 22,825 4,250 57,402 49,628 16,017 12,127 21,654 7,671 103 IV....................... 73,275 45,640 7,919 2,589 35,131 23,284 4,351 57,948 49,937 16,087 12,008 21,842 7,893 119 1971—1......................... 74,424 46,343 7,971 2,595 35,777 23,595 4,486 58,680 50,553 16,157 12,010 22,386 8,014 113 II....................... 76,639 48,163 8,146 2,636 37,381 24,477 3,999 59,643 51,362 16,281 12,011 23,069 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

MARCH 1972 □ 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 i Farm Total Total in F s H u A re - d a g n V u t A e a e r - - d Other Farm 1945.............................................. 976 6,637 5,860 1,394 4,466 766 1963.............................................. 9,172 8,306 1,598 678 6,030 866 50,544 46,752 10,756 6,401 29,595 3,792 1964.............................................. 10,433 9,386 1,812 674 6,900 1,047 55,152 50,848 11,484 6,403 32,961 4,304 1965.............................................. 11,137 9,988 1,738 553 7,697 1,149 60,013 55,190 12,068 6,286 36,836 4,823 1966............................................... 10,217 9,223 1,300 467 7,456 994 64,609 59,369 12,351 6,201 40,817 5,240 1967............................................... 8,470 7,633 757 444 6,432 837 67,516 61,947 12,161 6,122 43,664 5,569 1968............................................. 7,925 7,153 755 346 6,052 722 69,973 64,172 12,469 5,954 45,749 5,801 1969............................................... 7,531 6,943 663 220 6,108 537 72,027 66,254 12,271 5,701 48,282 5,773 1970.............................................. 7,127 6,763 401 82 6,280 314 74,345 68,693 11,325 5,390 51,978 5,652 1970 Dec.................................... 1,143 1,099 44 8 1,047 44 74,345 68,693 11,325 5,390 51,978 5,652 1971—Jan..................................... 448 423 17 7 399 25 74,370 68,779 11,383 5,368 52,028 5,591 Feb..................................... 449 425 17 5 407 24 74,437 68,871 11,338 5,346 52,187 5,566 Mar.................................... 623 579 33 5 541 44 74,516 68,973 11,302 5,316 52,355 5,543 Apr.................................... 578 533 18 8 507 45 74,536 68,993 11,237 5,284 52,472 5,543 May................................... 491 442 24 8 410 49 74,552 68,425 11,186 5,254 51,985 5,554 June................................... 537 494 29 9 456 42 74,535 68,973 11,123 5,219 52,631 5,562 July.................................... 590 551 20 8 523 39 74,583 69,017 11,048 5,180 52,789 5,566 Aug.................................... 735 684 23 8 601 51 74,707 69,121 10,975 5,142 52,438 5,586 Sept.................................... 672 636 73 10 515 36 74,799 69,209 10,950 5,104 52,590 5,590 Oct..................................... 607 568 28 11 487 39 74,864 69,270 10,884 5,071 52,749 5,594 Nov.................................... 607 565 20 9 492 42 74,903 69,302 10,843 5,047 52,854 5,596 Dec.................................... 1,346 1,285 18 10 1,252 61 75,596 69,995 10,760 5,001 53,660 5,601 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 outst and in g Loans made Loans outstanding (end of period) (end of period) Period va A n d c ­ es R m e e p n a ts y­ M de e p m o b si e t r s s’ Period h N o e m w e Home FHA- VA- Con­ Total t S e h rm or t i ­ t L e o rm ng ­ 2 Total i con­ pur­ Total 2 in­ guar- ven­ struc­ chase sured anteed tional tion 1945. 278 213 195 176 19 46 1964. 5,565 5,025 5,325 2,846 2,479 1,199 1945.............. 1,913 181 1,358 5,376 1965. 5,007 4,335 5,997 3,074 2,923 1,043 1966. 3,804 2,866 6,935 5,006 1,929 1,036 1963.............. 25,173 7,185 10,055 90,944 4,696 6,960 79,288 1964.............. 24,913 6,638 10,538 101,333 4,894 6,683 89,756 1967. 1,527 4,076 4,386 3,985 401 1,432 1965.............. 24,192 6,013 10,830 110,306 5,145 6,398 98,763 1968. 2,734 1,861 5,259 4,867 392 1,382 1966.............. 16,924 3,653 7,828 114,427 5,269 6,157 103,001 1969. 5,531 1,500 9,289 8,434 855 1,041 1970. 3,256 1,929 10,615 3,081 7,534 2,331 1967.............. 20,122 4,243 9,604 121,805 5,791 6,351 109,663 1971. 2,714 5,392 7,936 3,002 4,934 1,789 1968.............. 21,983 4,916 11,215 130,802 6,658 7,012 117,132 1969.............. 21,847 4,757 11,254 140,347 7,917 7,658 124,772 1971- 43 331 10,326 2,924 7,403 2,750 1970.............. 21,387 4,150 10,239 150,562 10,195 8,507 131,860 Feb............. 27 428 9,926 2,697 7,230 3,093 71 1,492 8,269 2,226 6,043 2,828 1971—Jan.... 1,667 307 752 151,503 10,473 8,673 132,357 151 1,151 7,267 2,322 4,945 2,376 Feb... 1,887 346 818 152,665 10,810 8,766 133,089 238 264 7,241 2,397 4,844 2,111 Mar... 2,795 521 1,143 154,43012,123 8,922134,320 July............ 309 213 7,338 2,544 4,794 *•1,696 Apr.. . 3,168 597 1,306 156,57411,560 9,128 135,886 Aug............ 358 183 7,514 2,812 4,702 1,528 May. . 3,438 620 1,451 158,747 11,885 9,299 137,563 327 203 7,637 2,844 4,793 1,522 June.. 4,301 718 2,109 161,44012,273 9,580 139,587 306 303 7,640 2,874 4,766 1,450 July... 4,151 686 2,087 163,951 12,592 9,784 141,575 364 296 7,709 2,829 4,880 1,549 Aug... 4,111 641 2,225 166,34212,852 10,034143,456 490 262 7,936 3,002 4,934 1,789 Sept... 3,672 628 1,951 168,46413,130 10,232145,102 Oct.. . 3,405 609 1,717 170,10613,278 10,374146,454 1972- 186 885 7,238 2,569 4,669 1,948 Nov... 3,298 589 1,661 172,04713,521 10,582 147,944 Dec.. . 3,592 573 1,590 174,385 13,798 10,848 149,739 1 Secured or unsecured loans maturing in 1 year or less. 1972—Jan.... 2,625 480 1,249 175,819 13,984 11,014 150,821 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 □ MARCH 1972 MORTGAGE DEBT OUTSTANDING MORTGAGE DEBT OUTSTANDING ON ON RESIDENTIAL PROPERTIES NONFARM 1- to 4-FAMILY PROPERTIES (In billions of dollars) (In billions of dollars) Government- All residential Multifamily i Ulnderwritten Con­ E pe n r d i o o d f Total F in i c n i s a a t l i n ­ ­ h O ol t d h e e r r s Total F i i n c n i s a a t l i n ­ ­ h O ol t d h e e r r s End of period Total Total F su H in r A e ­ d - an g V t u e A a e r - d - i ti v o e n n a ­ l tutions tutions 1954............................... 18.6 4.3 4.1 .2 14.3 1941............... 24.2 14.9 9.4 5.9 3.6 2.2 1963............................... 182.2 65.9 35.0 30.9 116.3 1945............... 24.3 15.7 8.6 5.7 3.5 2.2 1964............................... 197.6 69.2 38.3 30.9 128.3 196 3 211.2 176.7 34.5 29.0 20.7 8/3 196 4 231.1 195.4 35.7 33.6 25.1 8.5 1965............................... 212.9 73.1 42.0 31.1 139.8 1966............................... 223.6 76.1 44.8 31.3 147.6 196 5 250.1 213.2 36.9 37.2 29.0 8.2 1967*............................. 236.1 79.9 47.4 32.5 156.1 1 1 9 9 6 6 7* 6 . ............ 2 28 6 0 4 . . 0 0 2 2 2 3 3 6 . . 7 6 4 4 3 0. . 3 4 4 4 3 0 . .3 9 3 3 1 4 . . 5 7 9 8 . .8 2 1968*............................. 251.2 84.4 50.6 33.8 166.8 1968*............. 298.6 250.8 47.8 47.3 37.7 9.6 1969—1.......................... 254.8 85.3 51.4 33.9 169.6 II......................... 259.5 87.1 52.2 34.9 172.3 1969— I I V I . I ... ... 3 3 1 1 4 9 . . 1 0 2 2 6 6 2 5 . . 7 0 5 5 1 4 . . 4 0 5 5 0 2 . . 6 2 4 4 0 1. . 3 2 1 10 0 . . 9 4 I I V ll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 6 6 3 6 . . 5 8 8 9 8 0 . . 8 2 5 5 3 4. . 5 4 3 35 5 . . 7 5 1 17 76 4 . .6 6 1970—............1 321.7 265.9 55.8 53.2 42.9 10.3 1970—1.......................... 268.5 91.6 55.6 36.0 176.9 I I 326.3 268.9 57.4 54.5 43.2 11.3 271.7 92.2 56.1 36.0 179.6 II I 332.2 272.8 59.4 56.1 44.3 11.8 Ill....................... 276.0 95.1 58.1 37.0 181.0 I V 338.2 277.2 61.0 58.0 45.8 12.2 IV....................... 280.2 97.3 59.9 37.3 182.9 1971— 1 343.3 281.6 61.7 59.7 47.2 12.5 1971—1........................... 283.6 98.2 61.0 37.3 185.3 II........ 353.1 290.1 63.0 62.3 49.4 12.9 II......................... 290.9 100.4 62.8 37.6 190.5 i Structures of five or more units. 1 Includes outstanding amount of VA vendee accounts held by private investors under repurchase agreement. Note.—Based on data from same source as for “Mortgage Debt Out­ 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 but delinquent for— Loans in FHA-insured VA-guaranteed fore­ End of period closure 90 days Mortgages Mortgages Total 30 days 60 days or more Period Prop­ Pro­ erty Total h N o e m w es h is o E t m i x n ­ e g s jects i m pr i e m o n v ­ t e s ­ 2 Total3 h N om ew es h is o E t m i x n ­ e g s 1 1 9 9 6 6 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. . 2 3 1 0 2 2 . .3 3 5 2 . . 6 55 0 . .3 3 1 8 . . 3 38 4 3.29 2.40 .55 .34 .40 1966............... 3.40 2.54 .54 .32 .36 1945 665 257 217 20 171 192 1967............... 3.47 2.66 .54 .27 .32 1964, 8,130 1,608 4,965 895 663 2,846 1,023 1,821 1968............... 3.17 2.43 .51 .23 .26 3.22 2.43 .52 .27 .27 1965 , 8,689 1,705 5,760 591 634 2,652 876 1,774 1966. 7,320 1,729 4,366 583 641 2,600 980 1,618 1967—1.......... 3.04 2.17 .56 .31 .38 1967. 7,150 1,369 4,516 642 623 3,405 1,143 2,259 II........ 2.85 2.14 .45 .26 .34 1968, 8,275 1,572 4,924 1,123 656 3,774 1,430 2,343 Ill.... 3.15 2.36 .52 .27 .31 1969, 9,129 1,551 5,570 1,316 693 4,072 1,493 2,579 IV___ 3.47 2.66 .54 .27 .32 1970. 11,981 2,667 5,447 3,250 617 3,442 1,311 2,131 1968—1.......... 2.84 2.11 .49 .24 .32 1970—Oct... 1,218 304 564 292 57 341 117 224 II........ 2.89 2.23 .44 .22 .28 Nov.. 1,063 273 497 248 45 318 106 212 III.... 2.93 2.23 .48 .22 .26 Dec.. 1,351 280 472 549 50 316 109 207 IV___ 3.17 2.43 .51 .23 .26 1971--Jan... 999 295 476 187 41 297 102 195 1969—1.......... 2.77 2.04 .49 .24 .26 Feb.. 951 284 450 185 32 256 90 166 II........ 2.68 2.06 .41 .21 .25 Mar.. 1,097 318 531 202 46 303 98 205 Ill.... 2.91 2.18 .47 .26 .25 Apr.. 1,136 293 467 330 46 350 98 252 IV.... 3.22 2.43 .52 .27 .27 May. 1,203 290 504 354 55 417 111 306 June. 1,372 322 629 399 21 519 127 392 1970—1.......... 2.96 2.14 .52 .30 .31 July.. 1,340 338 646 304 53 561 135 426 II........ 2.83 2.10 .45 .28 .31 Aug.. 1,393 407 710 216 60 577 146 431 Ill___ 3.10 2.26 .53 .31 .25 Sept.. 1,242 320 543 290 89 693 188 506 3.64 2.67 .61 .36 .33 Oct. . 1,202 318 504 276 105 Nov.. 1,220 358 511 273 77 757 226 526 1971—1.......... 3.21 2.26 .56 .39 .40 II......... 3.27 2.36 .53 .38 .38 1 Monthly figures do not reflect mortgage amendments included in annual tot 2 a l N s. ot ordinarily secured by mortgages. rep N o o rt t s e .— on M 1 o - rt t g o a g 4 e - fa B m a i n ly k e F rs H A A - s i s n o s c u i r a e t d io , n V o A f - g A ua m ra e n ri t c e a e d, d a a t n a d f c r o o n m ­ 3 Includes a small amount of alteration and repair loans, not shown separ­ ventional mortgages held by more than 400 respondents, including ately; only such loans in amounts of more than $1,000 need be secured. mortgage bankers (chiefly), commercial banks, savings banks, and savings and loan associations. Note.—Federal Housing Admin, and Veterans Admin, data. FHA-insured loans represent gross amount of insurance written; VA-guaranteed loans, gross amounts of loans closed. Figures do not take into account principal 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

MARCH 1972 a 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 re A - d - a g n V u t A e a e r - - d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ Total F su H in re A - d - a g n V u t A e a e r - - d c P ha u s r e ­ s Sales d p M u er r a i i d o n e d g st O i a n n u g d t ­ 196 7 3,348 2,756 592 860 1,045 1,171 196 7 5,522 4,048 1,474 1,400 12 1,736 501 196 8 4,220 3,569 651 1,089 867 1,266 196 8 7,167 5,121 2,046 1,944 2,697 1,287 196 9 4,820 4,220 600 827 615 1,130 196 9 10,950 7,680 3,270 4,121 6,630 3,539 197 0 5.184 4.634 550 621 897 738 197 0 15.502 11.071 4.431 5,078 8,047 5.203 1970-Nov.. 5,141 4,587 554 35 42 776 1970-Nov.. 15,396 10,981 4,416 294 541 4,930 Dec.. 5.184 4.634 550 70 37 738 Dec.. 15.502 11.071 4.431 165 600 5.203 1971-Jan... 5,188 4,641 546 35 27 705 1971-Jan... 15,520 11,092 4,428 75 4 139 5,092 Feb.. 5,213 4,670 543 38 21 682 Feb.. 15,448 11,061 4,391 60 72 80 4,865 Mar.. 5,241 4,703 538 56 100 707 Mar.. 15,420 11,012 4,408 76 46 33 4.380 Apr.. 5.244 4,710 534 39 120 786 Apr.. 15,308 10,933 4,375 58 105 457 4.381 May. 5,261 4,731 530 40 171 906 May. 15,242 10,893 4,349 91 92 871 920 June. 5,275 4,751 524 43 43 424 1,247 June. 15,363 10,970 4,393 239 10 1,294 5,750 July.. 5,282 4,761 520 25 25 487 1,586 July.. 15,674 11,184 4,490 407 576 5,709 Aug.. 5,279 Aug.. 16,304 11,662 4,642 659 1,219 5,146 Sept.. 5.259 4,749 510 Sept.. 16,732 635 572 5,327 Oct. . 5.245 Oct. . 17,202 Nov.. 5.260 24 Nov.. 17,535 406 893 5,466 Note.—Government National Mortgage Assn. data. Data prior to Note.—Federal National Mortgage Assn. data. Data prior to Sept. Sept. 1968 relate to Special Assistance and Management and Liquidating 1968 relate to secondary market portfolio of former FNMA. Mortgage portfolios of former FNMA and include mortgages subject to participation commitments made during the period include some multifamily and non­ pool of Government Mortgage Liquidation Trust, but exclude conven­ profit hospital loan commitments in addition to 1- to 4- family loan com­ tional mortgage loans acquired by former FNMA from the RFC Mortgage mitments accepted in FNM A’s free market auction system, and through Co., the Defense Homes Corp., the Public Housing Admin., and Com­ the FNMA-GNMA Tandem Plan (Program 18). munity Facilities Admin. FEDERAL NATIONAL MORTGAGE ASSOCIATION HOME-MORTGAGE YIELDS AUCTIONS (In per cent) Government-underwritten Conventional home loans Primary market Secondary home loans (conventional loans) market Date of auction Mortgage Average Mortgage Average FHA series amounts yield amounts yield FHLBB series Yield (short­ (short­ Period (effective rate) on FHA- term term insured commit­ commit­ New new Offered Accepted ments) Offered Accepted ments) New Existing homes l h o o a m ns e homes homes In millions of In In millions of In dollars percent dollars percent 1968....................... 6.97 7.03 7.12 7.21 1969....................... 7.81 7.82 7.99 8.26 1971—Aug. 25 634.6 153.5 8.01 1970....................... 8.44 8.35 8.52 9.05 1971....................... 7.60 7.54 7.75 7.70 Sept. 8 445.2 188.6 7.91 20 437.5 193.0 7.89 1971—Jan.............. 8.18 8.08 7.95 Feb............. 7.91 7.80 7.75 Oct. 4 365.1 194.8 7.89 Mar............. 7.66 7.60 7.60 7.32 18 219.8 103.6 7.85 Apr............. 7.49 7.47 7.55 7.37 7.47 7.45 7.65 7.75 Nov. 1, 126.0 56.4 7.79 June............ 7.50 7.50 7.70 7.89 15, 145.2 102.0 7.71 July............ 7.66 7.63 7.80 7.97 29 210.6 101.1 7.67 Aug............. 7.74 7.71 7.85 7.92 Sept............ 7.83 7.76 7.85 7.84 Dec. 12 232.5 70.2 7.63 Oct.............. 7.84 7.75 7.80 7.75 27. 222.7 148.1 7.63 Nov............. 7.79 7.71 7.75 7.62 Dec............. r7.62 7.51 7.70 7.59 1972—Jan. 10, 136.9 72.9 7.62 24 103.6 54.9 7.61 1972—Jan.............. 7.62 7.46 7.60 7.49 Feb. 7, 88.7 63.9 7.61 62.4 34.9 7.74 22, 68.6 44.8 7.61 21.1 11.5 7.64 Note.—Annual data are averages of monthly figures. The FHA data are based on opinion reports submitted by field offices on prevailing local conditions as of the first of the succeeding Note.—Average secondary market yields are gross—before deduction of 38 month. Yields on FHA-insured mortgages are derived from basis-point fee paid for mortgage servicing. They reflect the average accepted bid weighted averages of private secondary market prices for Sec. yield for home mortgages assuming a prepayment period of 12 years for 30-year 203, 30-year mortgages with minimum downpayment and an loans, without special adjustment for FNMA commitment fees and FNMA stock assumed prepayment at the end of 15 years. Gaps in data are purchase and holding requirements. Beginning Oct. 18, 1971, the maturity on new due to periods of adjustment to changes in maximum permis­ short-term commitments was extended from 3 to 4 months. Mortgage amounts sible contract interest rates. The FHA series on average contract offered by bidders are total eligible bids received. interest rates on conventional first mortgages in primary markets are unweighted and are rounded to the nearest 5 basis points. The FHLBB effective rate series reflects fees and charges as well as contract rates (as shown in the table on conventional firstmortgage terms, p. A-37) and an assumed prepayment at end of 10 years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 56 CONSUMER CREDIT □ MARCH 1972 TOTAL CREDIT (In millions of dollars) Instalment Noninstalment End of period Total Other Repair Auto­ consumer and mod­ Personal Single­ Charge Service Total mobile goods ernization loans Total payment accounts credit paper paper loans 1 loans 1939. 7,222 4,503 1,497 1,620 298 1,088 2,719 787 1,414 518 1941 . 9,172 6,085 2,458 1,929 376 1,322 3,087 845 1,645 597 1945. 5,665 2,462 455 816 182 1,009 3,203 746 1,612 845 1950. 21,471 14,703 6,074 4,799 1,016 2,814 6,768 1,821 3,367 1,580 1955. 38,830 28,906 13,460 7,641 1,693 6,112 9,924 3,002 4,795 2,127 1960. 56,141 42,968 17,658 11,545 3,148 10,617 13,173 4,507 5,329 3,337 1965. 90,314 71,324 28,619 18,565 3,728 20,412 18,990 7,671 6,430 4,889 1966. 97,543 77,539 30,556 20,978 3,818 22,187 20,004 7,972 6,686 5,346 1967. 102,132 80,926 30,724 22,395 3,789 24,018 21,206 8,428 6,968 5,810 1968. 113,191 89,890 34,130 24,899 3,925 26,936 23,301 9,138 7,755 6,408 1969. 122,469 98,169 36,602 27,609 4,040 29,918 24,300 9,096 8,234 6,970 1970. 126,802 101,161 35,490 29,949 4,110 31,612 25,641 9,484 8,850 7,307 1971. 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1971- 125,077 100,101 35,004 29,575 4,067 31,455 24,976 9,480 8,094 7,402 Feb............................... 123,815 99,244 34,869 28,928 4,051 31,396 24,571 9,506 7,353 7,712 Mar.............................. 123,604 99,168 35,028 28,591 4,045 31,504 24,436 9,557 7,207 7,672 Apr............................... 125,047 100,028 35,496 28,682 4,077 31,773 25,019 9,676 7,689 7,654 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 Sept.............................. 130,644 104,973 37,383 29,840 4,330 33,420 25,671 10,061 8,305 7,305 131,606 105,763 37,759 30,072 4,357 33,575 25,843 10,097 8,435 7,311 Nov.............................. 133,263 107,097 38,164 30,586 4,370 33,977 26,166 10,182 8,634 7,350 Dec............................... 137,237 109,545 38,310 32,447 4,356 34,432 27,692 10,300 9,818 7,574 1972- 135,830 108,826 38,111 32,096 4,319 34,300 27,004 10,324 8,929 7,751 1 Holdings of financial institutions; holdings of retail outlets are in- hold, family, and other personal expenditures, except real estate mortgage eluded in “other consumer goods paper.” loans. For back figures and description of the data, see “Consumer Credit,” Section 16 (New) of Supplement to Banking and, monetary Statistics, 1965. Note.—Consumer credit estimates cover loans to individuals for house- and pp. 983-1003 of the Bulletin for Dec. 1968. INSTALMENT CREDIT (In millions of dollars) Financial institutions Retail outlets End of period Total Com­ Mis­ Auto­ Other Total mercial Finance Credit cellaneous Total mobile retail banks cos. i unions lenders * dealers 2 outlets 1939. 4,503 3,065 1,079 1,836 132 18 1,438 123 1,315 1941, 6,085 4,480 1,726 2,541 198 15 1,605 188 1,417 1945, 2,462 1,776 745 910 102 19 686 28 658 1950, 14,703 11,805 5,798 5,315 590 102 2,898 287 2,611 1955, 28,906 24,398 10,601 11,838 1,678 281 4,508 487 4,021 1960, 42,968 36,673 16,672 15,435 3,923 643 6,295 359 5,936 1965. 71,324 61,533 28,962 24,282 7,324 965 9,791 315 9,476 1966, 77,539 66,724 31,319 26,091 8,255 1,059 10,815 277 10,538 1967. 80,926 69,490 32,700 26,734 8,972 1,084 11,436 285 11,151 1968. 89,890 77,457 36,952 29,098 10,178 1,229 12,433 320 12,113 1969. 98,169 84,982 40,305 31,734 11,594 1,349 13,187 336 112,851 1970 101,161 87,064 41,895 31,123 12,500 1,546 14,097 327 13,770 1971. 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1971- 100,101 86,308 41,611 30,791 12,353 1,553 13,793 324 13,469 Feb................................................... 99,244 85,910 41,446 30,511 12,351 1,602 13,334 323 13,011 99,168 86,015 41,563 30,326 12,509 1,617 13,153 325 12,828 100,028 86,805 42,094 30,369 12,686 1,656 13,223 330 12,893 100,692 87,491 42,482 30,441 12,874 1,694 13,201 334 12,867 101,862 88,544 43,011 30,609 13,206 1,718 13,318 339 12,979 102,848 89,458 43,509 30,906 13,296 1,747 13,390 344 13,046 104,060 90,536 44,112 31,098 13,570 1,756 13,524 347 13,177 104,973 91,279 44,603 31,133 13,780 1,763 13,694 349 13,345 105,763 91,943 44,947 31,331 13,875 1,790 13,820 354 13,466 107,097 92,901 45,396 31,643 14,052 1,810 14,196 359 13,837 109,545 94,086 45,976 32,140 14,191 1,779 15,459 360 15,099 1972- 108,826 93,668 45,878 31,948 14,062 1,780 15,158 359 14,799 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

MARCH 1972 □ CONSUMER CREDIT A 57 INSTALMENT CREDIT HELD BY COMMERCIAL BANKS INSTALMENT CREDIT HELD BY FINANCE COMPANIES (In millions of dollars) (In millions of dollars) Autoinobile Repair E p n er d i o o d f Total Pur­ Paper s g O c u o o t m o h n d e e ­ r s r m iz l o o a a d a n ti e n d o r s n n­ s l P o o a e n n r a ­ s l End of period Total m A pa o u p b t e o il r ­ e s O g c u o o t m o h n d e e ­ s r r m i R z a o e a n d p ti d e a o r i n r n­ s l P o o a e n n r a ­ s l chased Direct paper paper loans 1939. 1,079 237 178 166 135 363 1939............................... 1,836 932 134 151 619 1941. 1,726 447 338 309 161 471 1941............................... 2,541 1,438 194 204 705 1945. 745 66 143 114 110 ‘312 1945............................... 910 202 40 62 606 1950. 5,798 1,177 1,294 1,456 834 1,037 1950............................... 5,315 3,157 692 80 1,386 1955. 10,601 3,243 2,062 2,042 1,338 1,916 1955............................... 11,838 7,108 1,448 42 3,240 1960, 16,672 5,316 2,820 2,759 2,200 3,577 1960............................... 15,435 7,703 2,553 173 5,006 1965. 28,962 10,209 5,659 4,166 2,571 6,357 1965............................... 24,282 9,400 4,425 224 10,233 1966, 31,319 11,024 5,956 4,681 2,647 7,011 1966............................... 26,091 9,889 5,171 191 10,840 1967. 32,700 10,927 6,267 5,126 2,629 7,751 1967............................... 26,734 9,538 5,479 154 11,563 1968. 36,952 12,213 7,105 6,060 2,719 8,855 1968............................... 29,098 10,279 5,999 113 12,707 1969. 40,305 12,784 7,620 7,415 2,751 9,735 1969............................... 31,734 11,053 6,514 106 14,061 1970. 41,895 12,433 7,587 8,633 2,760 10,482 1970............................... 31,123 9,941 6,648 94 14,440 1971, 45,976 13,003 8,752 9,805 2,864 11,552 1971................................ 32,140 10,279 6,521 107 15,233 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 Feb...................... 30,511 9,672 6,493 93 14,253 Mar__ 41,563 12,147 7,667 8,499 2,692 10,558 30,326 9,674 6,363 93 14,196 Apr— 42,094 12,268 7,825 8,595 2,702 10,704 30,369 9,781 6,280 98 14,210 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 Sept... 44,603 12,831 8,380 9,235 2,860 11,297 31,133 10,077 6,268 104 14,684 Oct---- 44,947 12,932 8,509 9,301 2,874 11,331 31,331 10,177 6,306 105 14,743 Nov.. . 45,396 13,015 8,680 9,412 2,875 11,414 31,643 10,248 6,325 106 14,964 Dec__ 45,976 13,003 8,752 9,805 2,864 11,552 32,140 10,279 6,521 107 15,233 1972--Jan.. .. 45,878 12,957 8,734 9,783 2,835 11,569 1972—Jan....................... 31,948 10,197 6,501 108 15,142 See Note to first table on preceding page. Note.—Finance companies consist of those institutions formerly clas­ sified as sales finance, consumer finance, and other finance companies. INSTALMENT CREDIT HELD BY OTHER NONINSTALMENT CREDIT FINANCIAL LENDERS (In millions of dollars) (In millions of dollars) Single­ Other Repair payment Charge accounts Auto­ con­ and Per­ loans End of period Total mobile sumer modern­ sonal paper goods ization loans Total Service paper loans End of period Com­ Other credit mer­ finan­ Retail Credit cial cial outlets cards1 1939................................ 150 27 5 12 106 banks insti­ 1941............................... 213 47 9 11 146 tutions 1945............................... 121 16 4 10 91 1 19 9 5 5 5 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,9 6 5 9 9 2 5 1 6 59 0 1 4 3 0 0 3 1 1 0 3 2 9 39 5 1 6 1 1 9 9 3 41 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 , , 7 0 1 8 9 7 6 6 2 9 5 3 1 1 6 5 2 2 1 1, , 6 4 4 1 5 4 5 5 1 97 8 1960............................... 4,566 1,460 297 775 2,034 1945............... 3,203 674 72 1,612 845 1965............................... 8,289 3,036 498 933 3,822 1950............... 6,768 1,576 245 3,291 76 1,580 1966............................... 9,314 3,410 588 980 4,336 1955............... 9,924 2,635 367 4,579 216 2,127 1967............................... 10,056 3,707 639 1,006 4,704 1960............... 13,173 3,884 623 4,893 436 3,337 1968............................... 11,407 4,213 727 1,093 5,374 1969............................... 12,943 4,809 829 1,183 6,122 196 5 18,990 6,690 981 5,724 706 4,889 1970............................... 14,046 5,202 898 1 ,256 6,690 196 6 20,004 6,946 1,026 5,812 874 5,346 1971................................ 15,970 5,916 1,022 1,385 7,647 1 1 9 9 6 6 7 8 2 2 1 3 , , 2 3 0 0 6 1 7 7, , 9 3 7 4 5 0 1 1 , ,1 0 6 8 3 8 5 6 , , 9 4 3 5 9 0 1 1, , 3 0 0 2 5 9 6 5 , , 4 8 0 1 8 0 1971—Jan....................... 13,906 5,143 888 1,247 6,628 196 9 24,300 7,900 1,196 6,650 1,584 6,970 Feb...................... 13,953 5,148 889 1,254 6,662 197 0 25,641 8.205 1,279 6,932 1.918 7,307 Mar..................... 14,126 5,215 901 1,260 6,750 197 1 27,692 8.916 1.384 7.597 2,221 7.574 Apr...................... 14,342 5,292 914 1,277 6,859 14,568 5,372 927 1,297 6,972 1971—Jan.... 24,976 8,196 1,284 6,144 1,950 7,402 June..................... 14,924 5,510 952 1,320 7,142 Feb.... 24,571 8.205 1,301 5,435 1.918 7,712 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 Apr.... 25,019 8,350 1,326 5,774 1,915 7,654 Sept..................... 15,543 5,746 992 1,366 7,439 May... 25,333 8,425 1,340 6,046 1,958 7,564 Oct....................... 15,665 5,787 999 1,378 7,501 June... 25,526 8,512 1,350 6,199 2,015 7,450 Nov..................... 15,862 5,862 1,012 1,389 7,599 July... 25,506 8,498 1,356 6,173 2,098 7,381 Dec...................... 15,970 5,916 1,022 1,385 7,647 Aug... 25,644 8,633 1,364 6,120 2,185 7,342 Sept... 25,671 8,694 1,367 6,101 2,204 7,305 1972—Jan....................... 15,842 5,864 1,013 1,376 7,589 Oct.... 25,843 8,722 1,375 6,269 2,166 7,311 Nov... 26,166 8,795 1.387 6,482 2,152 7,350 Dec.... 27,692 8.916 1.384 7.597 2,221 7.574 lan N eo o u t s e .— len O de th rs e . r financial lenders consist of credit unions and miscel­ 1972—Jan.... 27,004 8,937 1.387 6,719 2,210 7,751 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 □ MARCH 1972 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.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965........................................ 78,586 27,227 22,750 2,266 26,343 1966........................................ 82,335 27,341 25,591 2)200 27)203 1967........................................ 84,693 26,667 26,952 2)ll3 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)l45 35)373 1971........................................ 117,638 34,638 40,979 2)550 39,471 1971—Jan................................ 8,916 7,545 2,461 1,997 3,252 2,868 177 122 3,026 2,558 Feb............................... 9,081 7,489 2,687 2,336 3,204 2,431 197 155 2,993 2,567 Mar.............................. 9,533 9,575 2,897 3,074 3,210 3,076 209 197 3,217 3,228 Apr............................... 9,751 10,079 2,872 3,100 3,415 3,363 205 219 3,259 3,397 May............................. 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 Sept.............................. 10,156 9,849 3,147 2,927 3,462 3,454 227 237 3,320 3,231 Oct............................... 10,031 9,797 2,992 3,037 3,467 3,423 229 225 3,343 3,112 Nov.............................. 10,572 10,711 3,162 3,105 3,595 3,737 214 215 3,601 3,654 Dec............................... 10,130 11,966 2,973 2,780 3,604 5,061 217 181 3,336 3,944 1972—Jan................................ 10,184 8,766 2,978 2,470 3,706 3,297 221 156 3,279 2,843 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)l95 1970......................................... 101,138 30,943 34,441 2,075 33,679 1971......................................... 109,254 31,818 38,481 2,304 36,651 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 Sept.............................. 9,157 8,936 2,732 2,698 3,172 3,091 199 202 3,054 2,945 Oct................................ 9,107 9,007 2,634 2,661 3,219 3,191 197 198 3,057 2,957 Nov.............................. 9,306 9,377 2,662 2,700 3,254 3,223 199 202 3,191 3,252 Dec............................... 9,230 9,518 2,696 2,634 3,188 3,200 198 195 3,148 3,489 1972—Jan................................ 9,547 9,485 2,761 2,669 3,501 3,648 201 193 3,084 2,975 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 1971......................................... 8,384 2,820 2,498 246 2,820 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 Sept.............................. 999 913 415 229 290 363 28 35 266 286 Oct............................... 924 790 358 376 248 232 32 27 286 155 Nov.............................. 1,266 1,334 500 405 341 514 15 13 410 402 Dec............................... 900 2,448 277 146 416 1,861 19 -14 188 455 1972—Jan................................ 637 -719 217 -199 205 -351 20 -37 195 -132 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

MARCH 1972 □ 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.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. S.A.1 N.S.A. Extensions 1965......................................... 78,586 29,528 25,192 9,436 14,430 J966......................................... 82,335 30,073 25,406 10,362 16,494 1967......................................... 84,693 30,850 25,496 10,911 17,436 1968......................................... 97.053 36,332 28,836 12,850 19,035 1969......................................... 102,888 38,533 30,854 14,245 19,256 1970......................................... 104,130 39,136 29,662 14,619 20,713 1971......................................... 117,638 45,099 32,036 17,312 23,191 1971—Jan................................ 8,916 7,545 3,338 2,885 2,411 1,961 1,288 1,055 1,879 1,644 Feb............................... 9,081 7,489 3,478 2,988 2,513 2,121 1,282 1,117 1,808 1,263 Mar.............................. 9,533 9,575 3,646 3,783 2,681 2,686 1,394 1,418 1,812 1,688 Apr............................... 9,751 10,079 3,676 3,948 2,624 2,672 1,475 1,552 1,976 1,907 May............................. 9,690 9,562 3,600 3,671 2,798 2,655 1,441 1,493 1,851 1,743 June............................. 9,715 10,667 3,806 4,207 2,490 2,832 1,513 1,724 1,906 1,904 July............................... 9,675 10,098 3,644 3,917 2,676 2,791 1,423 1,506 1,932 1,884 Aug............................... 10,049 10,300 3,919 4,062 2,699 2,729 1,452 1,582 1,979 1,927 Sept.............................. 10,156 9,849 3,989 3,932 2,718 2,549 1,488 1,439 1,961 1,929 Oct................................ 10,031 9,797 3,832 3,752 2,733 2,655 1,490 1,414 1,976 1,976 Nov.............................. 10,572 10,711 4,140 3,931 2,853 3,015 1,564 1,535 2,015 2,230 Dec............................... 10,130 11,966 3,939 4,023 2,760 3,370 1,454 1,477 1,977 3,096 1972—Jan................................ 10,184 8,766 3,826 3,366 2,695 2,247 1,482 1,244 2,181 1,909 Repayments 1965......................................... 69,957 25,663 22,551 8,310 13,433 1966......................................... 76,120 27,716 23,597 9,337 15,470 1967....................................... 81,306 29,469 24,853 10,169 16,815 1968......................................... 88,089 32,080 26,472 11,499 18,038 1969......................................... 94,609 35,180 28,218 12,709 18,502 1970......................................... 101,138 37,961 29,858 13,516 19,803 1971......................................... 109,254 41,018 31,019 15,388 21,829 1971—Jan................................ 8,829 8,605 3,385 3,169 2,486 2,293 1,199 1,195 1,759 1,948 Feb............................... 8,979 8,346 3,369 3,153 2,656 2,401 1,186 1,070 1,768 1,722 Mar.............................. 9,038 9,651 3,387 3,666 2,674 2,871 1,207 1,245 1,770 1,869 Apr............................... 9,088 9,219 3,332 3,417 2,580 2,629 1,315 1,336 1,861 1,837 May............................. 9,197 8,898 3,375 3,283 2,698 2,583 1,323 1,267 1,801 1,765 June............................. 9,190 9,497 3,541 3,678 2,550 2,664 1,299 1,368 1,800 1,787 July.............................. 8,914 9,112 3,351 3,419 2,485 2,494 1,293 1,387 1,785 1,812 Aug.............................. 9,222 9,088 3,456 3,459 2,590 2,537 1,288 1,299 1,888 1,793 Sept.............................. 9,157 8,936 3,460 3,441 2,614 2,514 1,266 1,222 1,817 1,759 Oct............................... 9,107 9,007 3,439 3,408 2,495 2,457 1,319 1,292 1,854 1,850 Nov.............................. 9,306 9,377 3,470 3,482 2,579 2,703 1,360 1,338 1,897 1,854 Dec............................... 9,230 9,518 3,451 3,443 2,596 2,873 1,324 1 ,369 1,859 1,833 1972—Jan................................ ..9,547 9,485 3,620 3,464 2,586 2,439 1,346 1,372 1,995 2,210 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 1971......................................... 8,384 4,081 1,017 1,924 1,362 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 Sept.............................. 999 913 529 491 104 35 222 217 144 170 Oct............................... 924 790 393 344 238 198 171 122 122 126 Nov.............................. 1,266 1,334 670 449 274 312 204 197 118 376 Dec............................... 900 2,448 488 580 164 497 130 108 118 1,263 1972—Jan................................ 637 -719 206 -98 109 -192 136 -128 186 -301 1 Includes adjustments for differences in trading days. changes in their outstanding credit. Such transfers do not affect total 2 Net changes in credit outstanding are equal to extensions less re­ instalment credit extended, repaid, or outstanding. payments, except in certain months when data for extensions and re­ payments have been adjusted to eliminate duplication resulting from Note.—“Other financial lenders” include credit unions and miscellaneous large transfers of paper. In those months the differences between ex­ lenders. See also Note to preceding table and Note 1 at bottom of p. A-56. tensions and repayments for some particular holders do not equal the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 60 INDUSTRIAL PRODUCTION: S.A. □ MARCH 1972 MARKET GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ avertion agep Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.p Total index..................................... 100.00 106.4 105.3 105.7 105.5 106.2 107.0 107.2 106.1 105.3 106.2 106.4 107.0 107.6 108.2 Products, total................................... 62.21 106.2 104.6 105.0 104.5 105.5 105.9 106.1 106.8 106.2 106.2 106.9 107.6 107.6 108.1 Final products................................. 48.95 104.4 102.9 103.0 102.5 103.6 103.9 104.5 104.9 105.0 104.6 105.3 105.9 105.6 106.0 Consumer goods........................ 28.53 115.6 112.8 112.9 112.7 114.6 115.7 116.1 116.0 116.0 115.0 116.9 118.2 117.7 118.3 Equipment.................................. 20.42 88.9 88.9 89.3 88.4 88.1 87.8 88.2 89.3 89.6 90.2 89.0 88.8 88.6 88.8 Intermediate products................... 13.26 112.8 110.9 112.5 112.0 112.4 113.5 112.4 113.8 110.7 112.5 113.0 114.0 114.9 115.5 Materials............................................ 37.79 106.8 106.5 106.8 107.1 107.5 108.9 109.0 105.3 104.0 106.2 105.6 106.0 107.5 108.4 Consumer goods Durable consumer goods.................... 7.86 114.3 108.1 110.6 111.6 112.2 117.2 116.1 115.8 115.8 113.6 115.3 115.5 115.6 115.7 Automotive products..................... 2.84 119.4 110.9 117.8 117.8 113.7 123.1 121.2 120.1 121.1 118.0 119.6 119.6 119.8 114.5 Autos.......................................... 1.87 108.3 104.1 112.8 112.2 103.2 108.3 107.9 107.9 108.5 108.0 107.8 109.2 109.4 102.8 Auto parts and allied goods---- .97 140.8 124.1 127.4 128.6 133.9 151.4 146.8 143.6 145.2 153.4 142.2 139.7 139.6 136.9 Home goods........................................ 5.02 111.5 106.5 106.5 108.2 111.4 113.9 113.3 113.5 112.9 111.1 112.9 113.4 113.2 116.3 Appliances, TV, and radios.......... 1.41 111.2 104.9 102.5 107.9 116.4 120.7 116.9 115.0 112.1 105.7 110.7 113.4 112.7 120.5 Appliances and A/C.................. .92 127.2 122.6 117.6 124.9 126.0 132.1 129.3 126.0 128.0 121.7 131.1 135.5 129.4 138.9 TV and home audio.................. .49 81.4 71.8 74.0 76.1 98.6 99.4 93.9 94.5 82.4 75.6 72.6 71.8 81.3 86.3 Carpeting and furniture............... 1.08 112.9 106.4 110.1 108.3 110.7 111.7 113.6 114.8 114.7 116.1 115.3 117.3 116.0 117.2 Misc. home goods........................ 2.53 110.8 107.5 107.5 108.1 109.0 111.1 111.2 112.0 112.5 112.1 113.1 111.7 112.3 113.7 Nondurable consumer goods............. 20.67 116.1 114.6 113.8 113.1 115.5 115.1 116.1 116.1 116.1 115.6 117.5 119.3 118.5 119.3 Clothing........................................ 4.32 101.3 99.7 97.3 96.9 101.0 102.6 101.9 102.4 100.3 102.5 103.5 103.6 105.3 Consumer staples......................... 16.34 120.0 118.5 118.1 117.4 119.4 118.5 119.9 119.8 120.2 119.1 121.2 123.5 122.0 i 23.3 Consumer foods and tobacco.. 8.37 113.3 114.0 112.6 111.8 112.7 113.2 113.5 112.0 112.6 110.4 113.9 117.2 115.3 115.5 Nonfood staples........................ 7.98 126.9 123.2 123.9 123.2 126.4 124.2 126.5 128.0 128.4 128.2 128.9 130.1 129.0 131.4 Consumer chemical products 2.64 133.2 131.8 131.8 131.6 134.0 133.2 130.9 133.1 133.1 133.5 131.7 136.9 134.0 135.9 Consumer paper products... 1.91 107.9 104.4 104.6 103.0 108.2 105.0 109.9 106.9 106.2 109.2 110.3 111.5 114.8 115.8 Consumer fuel and lighting., 3.43 132.4 127.0 128.9 127.9 130.5 128.0 132.5 135.9 137.2 134.7 137.1 135.2 133.2 136.5 Residential utilities........... 2.25 140.2 132.0 135.2 133.2 136.4 135.1 140.6 145.1 146.2 144.2 147.0 144.5 140.9 145.1 Equipment Business equipment........................... 12.74 96.1 94.2 96.0 95.0 95.1 94.4 95.0 96.3 96. 97.8 97.4 97.0 97.0 97.6 Industrial equipment................... 6.77 92.4 91.5 93.4 92.4 92.4 90.9 90.9 91.8 92.0 92.4 92.6 93.2 92.8 93.3 Building and mining equip___ 1.45 92.9 90.6 94.3 92.4 91.2 91.5 88.8 88.9 96.4 96.6 95.5 95.2 94.0 97.3 Manufacturing equipment 3.85 81.4 82.9 82.2 81.3 82.1 79.5 80.1 81.1 79.9 80.5 81.1 81.3 81.5 81.4 Power equipment................. 1.47 120.6 115.0 121.7 121.5 120.5 120.2 121.3 122.7 119.7 119.5 119.7 122.2 121.0 120.4 Commercial, transit, farm eq*... 5.97 100.3 97.2 99.0 98.0 98.2 98.4 99.6 101.5 102.2 103.8 102.8 101.3 101.8 102.5 Commercial equipment............ 3.30 108.6 105.5 107.0 106.6 107.1 107.6 107.6 109.9 109.9 112.0 111.0 109.1 109.4 109.6 Transit equipment................... 2.00 89.0 88.6 89.1 87.2 87.3 87.3 90.5 88.4 90.2 90.2 90.4 88 92.1 93.5 Farm equipment....................... .67 92.5 82.0 88.8 88.0 86.6 86.6 87.7 99.9 100.0 103.9 99.5 101.1 93.4 94.2 Defense and space equipment.......... 7.68 77.1 80.0 78.1 77.5 76.5 76.9 77.1 77.7 77.9 77.7 75.1 75.3 74. 74.3 Military products......................... 5.15 80.4 82.6 80.4 79.8 79.1 79.5 80.5 81.4 82.2 82.3 79.0 78.7 78.1 77.7 Intermediate products Construction products..................... 5.93 113.0 111.1 111.9 112.6 113.4 115.5 113.5 115.3 109.4 111.3 112.7 112.9 116.1 116.8 Misc. intermediate products........... 7.34 112.7 110.8 113.1 111.4 111.6 111.9 111.6 112.7 111.7 113.4 113.4 114.9 113.9 114.5 Materials Durable goods materials................... 20.91 100.8 101.5 101.6 101.9 102.2 104.8 103.0 98.7 94.9 98.7 100.4 99.5 99.9 102.2 Consumer durable parts........ 4.75 101.4 99.4 101.4 103.2 102.8 105.1 104.8 98.8 100.4 100.7 101. 99.4 99.2 101.0 Equipment parts.......................... 5.41 86.5 88.4 87.6 86.4 86.0 88.9 87.1 87.0 82.1 86.0 86.9 86.0 85.6 88.1 Durable materials nec................. 10.75 107.8 109.0 108.8 109.2 110.2 112.8 110.2 104.6 99.0 104.1 106.6 106.4 107.4 109.8 Nondurable goods materials............. 13.99 113.8 111.7 112.1 112.0 112.7 112 115.5 112.3 114 114.7 114.6 116.0 116.7 115.8 Textile, paper, and chem. mat---- 8.58 116.0 111.2 111.7 111.9 113.2 113.7 117.5 113.4 117.8 118.8 118.8 121.7 123.0 120.3 Nondurable materials n.e.c.......... 5.41 110.3 112.5 112.7 112.3 111.9 111.3 112.0 110.5 109.9 108.2 108.3 107.1 106.7 108.7 Fuel and power, industrial............... 2.89 116.3 117.8 118.6 121.1 121.0 119.7 121.1 119.7 117.2 119.3 99.4 105.0 118.2 117.9 Supplementary groups Home goods and clothing............... 9.34 106.8 103.4 102.3 102.9 106.6 108.7 108.0 108.3 107.1 107.1 108.5 108 109.6 110.7 Containers........................................ 1.82 116.7 119.2 119.6 108.1 113.5 117.8 115.5 118.2 117.2 115.0 116.8 119.1 120.8 120.1 Gross value of products in market structure (In billions of 1963 dollars) Products, total................. 391.8 386.2 388.6 385.9 390.2 391.6 392.6 395.2 393.0 392. 395.3 396.1 394.9 398.0 Final products............ 302.2 297.7 298.5 297.4 300.4 301.3 303.2 304.6 305.4 302.9 305.2 305.9 304.0 306.0 Consumer goods.... 213.5 209.1 209.5 209.6 212.6 213.4 214.8 216.4 215.5 212.1 215.7 217.1 215.8 216.5 Equipment............... 88.8 88.7 89.2 87.9 87.9 87.6 88.5 88.1 90.1 90.7 89.4 88.8 88.1 89.4 Intermediate products. 89.6 88.4 89.9 88.5 89.3 90.2 89.6 90.8 87.7 89.7 90.1 90.2 90.8 91.8 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

MARCH 1972 □ INDUSTRIAL PRODUCTION: S.A. A 61 INDUSTRY GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ avertion age» Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.*' Manufacturing...................................... 88.55 104.8 103.3 103.9 103.2 104.4 105.7 105.6 104.9 103.6 104.9 105.4 105.3 105.7 106. Durable............................................ 52.33 98.9 98.1 98.6 98.3 99.1 100.5 100.1 99.4 96.6 98.5 99.1 98.0 98.4 99. Nondurable...................................... 36.22 113.3 110.9 111.7 110.4 112.1 113.3 113.7 113.0 113.8 114.2 114.6 115.9 116.2 116. Mining and utilities............................. 11.45 119.6 119.3 119.9 .120.2 120.6 119.0 120.7 120.3 120.0 120.3 116.1 118.7 120.4 121. Mining.............................................. 6.37 106.9 111.1 110.1 111.4 110.4 108.6 108.9 105.7 106.5 106.0 97.7 102.3 107.7 107. Utilities............................................. 5.08 135.5 129.6 132.2 131.5 133.2 132.1 135.6 138.7 137.0 138.4 139.3 139.6 136.5 138. Durable manufactures Primary and fabricated metals............ 12.55 104.0 106.8 106.0 105.8 108.6 111.5 108.3 104.2 93.8 99.5 100.9 98.7 100.7 103. Primary metals................................. 6.61 100.9 108.1 105.5 106.6 108.7 114.3 108.1 98.2 81.0 93.9 95.7 91.4 94.4 101. Iron and steel, subtotal............... 4.23 96.5 106.9 104.8 105.2 109.1 112.9 105.3 99.0 66.2 85.9 88.7 81.9 85.5 95. Fabricated metal products.............. 5.94 107.4 105.4 106.6 104.9 108.5 108.5 108.5 110.8 108.0 105.7 106.9 106.9 107.7 106. Machinery and allied goods................. 32.44 94.1 93.0 93.5 93.0 92.7 93.8 94.4 94.7 94.5 95.2 95.3 94.6 94.2 94. Machinery......................................... 17.39 95.4 93.4 94.2 94.0 94.2 95.3 95.2 97.4 95.6 96.3 97.0 96.3 96.7 97. Nonelectrical machinery.............. 9.17 92.9 90.1 92.3 91.1 91.4 90.9 91.6 94.9 94.1 95.0 95.3 93.3 94.4 93. Electrical machinery.................... 8.22 98.2 97.1 96.3 97.1 97.4 100.2 99.2 100.2 97.3 97.8 98.9 99.6 99.4 101. Transportation equipment.............. 9.29 91.3 91.1 92.6 91.3 89.5 90.9 91.7 88.5 91.1 91.7 92.4 91.6 89.8 89. Motor vehicles and parts............ 4.56 111.6 107.7 113.0 112.2 108.4 110.2 111.7 106.7 111.6 111.8 112.9 113.4 111.7 111. Aerospace and misc. trans. eq... 4.73 71.9 75.2 72.9 71.2 71.4 72.3 72.4 71.0 71.5 72.4 72.6 70.7 68.7 67. Instruments....................................... 2.07 108.5 106.5 105.3 105.5 106.7 108.0 108.5 110.9 109.1 110.5 111.2 110.4 109.3 111. Ordnance, private and Govt........... 3.69 87.0 87.9 85.5 85.7 85.2 86.0 88.8 88.8 90.0 90.2 85.6 85.1 84.7 84. Lumber, clay, and glass....................... 4.44 111.3 106.9 109.8 110.8 113.0 112.3 111.0 111.2 110.4 111 .1 112.7 113.0 113.8 115. Lumber and products..................... 1.65 113.3 109.7 110.8 110.3 112.5 110.0 111.0 115.4 113.1 113.9 117.3 117.9 119.4 123. Clay, glass, and stone products.... 2.79 110.1 105.3 109.2 111.1 113.3 113.7 111.1 108.7 108.8 109.4 109.9 110.1 110.5 111. Furniture and miscellaneous................. 2.90 110.0 105.2 107.1 105.6 109.5 109.9 111.3 113.5 111.3 112.0 112.1 111.5 112.7 113. Furniture and fixtures..................... 1.38 98.7 94.2 96.0 95.0 98.7 97.6 100.9 99.9 99.6 100.8 100.3 101.6 100.4 101. Miscellaneous manufactures........... 1.52 120.3 115.2 117.2 115.4 119.3 121.2 120.7 126.1 122.0 122.2 122.6 120.5 123.9 124. Nondurable manufactures Textiles, apparel, and leather.............. 6.90 100.6 98.6 98.0 97.3 99.8 101.5 102.4 100.2 100.1 102.5 102.2 101.6 103.9 102. Textile mill products....................... 2.69 108.4 103.1 105.4 105.3 106.3 107.5 109.1 108.5 110.5 111.0 110.1 110.2 112.8 108. Apparel products............................. 3.33 97.8 97.4 94.5 94.0 97.3 99.7 97.1 97.0 96.0 99.5 100.0 99.5 101.1 Leather and products...................... .88 87.3 89.5 89.0 85.4 89.9 89.8 89.3 86.7 84.1 87.6 87.2 82.9 86.8 90 J Paper and printing............................... 7.92 107.8 107.1 108.1 104.6 106.9 106.9 106.0 106.8 108.2 108.3 109.0 110.6 110.8 112.. Paper and products......................... 3.18 116.0 116.9 116.0 111.0 114.4 115.1 113.4 115.5 117.8 116.4 116.1 119.5 120.0 121.. Printing and publishing................... 4.74 102.2 100.5 102.8 100.2 101.8 101.4 101.0 101.0 101.7 102.9 104.3 104.5 104.7 106. Chemicals, petroleum, and rubber.... 11.92 124.4 118.2 120.9 120.5 122.4 124.2 125.3 124.0 126.2 127.3 126.5 127.8 127.8 128.- Chemicals and products.................. 7.86 125.9 119.3 121.7 121.0 123.4 123.7 126.8 125.0 127.6 129.7 128.2 130.7 130.3 130.; Petroleum products......................... 1.80 115.8 117.2 117.1 116.3 115.8 112.7 115.0 114.8 115.8 113.7 115.7 116.0 118.3 118. Rubber and plastics products......... 2.26 126.1 115.5 120.6 122.7 124.5 127.2 129.1 128.0 129.9 129.6 129.0 127.6 126.6 127.! Foods and tobacco............................... 9.48 113.5 113.9 113.1 112.2 112.9 113.6 113.7 113.8 112.8 111.1 113.2 115.6 115.0 115. ( Foods................................................ 8.81 114.6 114.6 114.1 113.8 114.1 114.6 115.4 115.2 114.0 111.9 114.3 117.0 116.7 117.: Tobacco products............................ .67 97.7 106.6 100.1 90.3 96.9 100.3 92.1 96.6 98.2 100.3 98.5 98.2 93.8 Mining Metal, stone, and earth minerals......... 1.26 104.5 113.6 113.6 111.6 106.5 104.6 104.9 91.6 96.8 98.1 102.0 110.9 111.1 107 A Metal mining................................... .51 121.4 140.1 139.0 135.1 124.7 122.6 117.3 93.5 104.8 109.7 117.1 136.7 137.7 129.( Stone and earth minerals................ .75 93.2 95.6 96.3 95.6 94.2 92.4 96.4 90.2 91.4 90.1 91.7 93.4 92.7 93. ( Coal, oil, and gas................................. 5.11 107.5 110.6 109.3 111.4 111 .4 109.6 109.9 109.2 108.9 108.0 96.7 100.2 106.8 107.: Coal.................................................. .69 99.0 112.3 108.8 116.2 115.5 110.2 109.4 109.4 109.4 109.7 29 A 55.7 112.4 104.i Oil and gas extraction..................... 4.42 108.9 110.3 109.3 110.6 114.3 109.6 110.0 109.2 108.8 107.7 107.3 107.2 106.0 108.1 Utilities Electric................................................. 3.91 138.0 131.5 134.9 133.6 135.5 133.8 138.3 142.0 139.7 141.5 142.3 142.3 138.0 140.: Gas....................................................... 1.17 127.0 123.0 123.6 124.3 1 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. □ MARCH 1972 MARKET GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ aver­ tion age* Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec,, Jan. * Total index....................................... 100.00 106.4 103.2 106.1 106.0 106.5 107.3 109.7 102.1 105.5 109.8 109.8 107.2 104.1 106. Products, total................................... 62.21 106.2 101.8 104.7 104.5 105.0 105.1 109.0 103.9 107.5 111.7 111.2 107.4 102.9 105.; 48.95 104.4 101.0 103.4 103.0 102.9 102.7 107.2 101.6 105.6 110.0 109.3 105.6 101.0 104.. Consumer goods.......................... 28.53 115.6 110.3 113.2 112.9 113.6 113.5 119.3 111.9 118.4 123.1 122.9 117.3 110.2 115.! Equipment.................................... 20.42 88.9 88.1 89.6 89.1 88.0 87.6 90.4 87.1 87.6 91.8 90.3 89.2 88.2 88. Intermediate products..................... 13.26 112.8 104.7 109.5 110.2 112.6 113.8 115.5 112.4 114.5 118.1 118.1 114.1 109.8 109.1 Materials............................................ 37.79 106.8 105.4 108.3 108.4 109.0 110.8 110.9 99.2 102.3 106.8 107.6 107.0 106.1 107. Consumer goods Durable consumer goods....................... 7.86 114.3 107.3 113.8 114.8 114.7 117.3 120.5 101.9 108.6 121.5 125.7 118.9 106.9 114. Automotive products....................... 2.84 119.4 115.6 125.1 125.3 121.9 127.2 130.5 94.9 102.0 128.6 135.8 123.7 102.4 118. Autos............................................ 1.87 108.3 113.5 124.1 123.4 112.5 120.2 120.8 69.4 76.5 112.0 124.0 115.6 87,5 112. Auto parts and allied goods........ .97 140.8 119.6 127.0 128.9 139.9 140.8 149.0 144.0 151.0 160.5 158.6 139.4 130,9 132. Home goods.......................................... 5.02 111.5 102.6 107.4 108.8 110.7 111.7 114.9 105.8 112.4 117.5 120.0 116.2 109.5 112. Appliances, TV, and radios............ 1.41 111.2 102.5 108.9 113.6 116.1 117.1 117.3 102.5 104.1 113.4 125.3 116.2 97 .9 117. Appliances and A/C.................... .92 127.2 120.1 124.7 133.6 133.1 132.2 136.1 122.3 114.4 128.0 142.8 131.6 107.5 135. TV and home audio.................... .49 81.4 69.5 79.3 76.2 84.3 88.8 81.9 65.4 84.8 86.2 92.5 87.4 80.1 83. Carpeting and furniture.................. 1.08 112.9 108.0 114.7 111.4 111.1 108.6 112.6 97.9 114.9 119.5 116.6 120.5 118.6 119. Misc. home goods........................... 2.53 110.8 100.4 103.4 105.1 107.5 110.0 114.4 111.0 116.0 118.9 118.5 114.4 112.1 107. Nondurable consumer goods................ 20.67 116.1 111.4 113.0 112.2 113.2 112.1 118.8 115.7 122.1 123.7 121.8 116.7 111 ,5 116. Clothing............................................ 4.32 101.3 95.0 102.0 102.5 102.6 101.4 105.5 93.6 105.6 107.0 110.7 100.5 90,9 Consumer staples............................. 16.34 120.0 115.7 115.9 114.8 116.0 114.9 122.3 121.6 126.5 128.1 124.7 121.0 117.0 iio.' Consumer foods and tobacco.... 8.37 113.3 108.1 108.5 108.7 110.0 110.8 116.6 112.6 118.6 120.0 120.5 115.7 109.0 109. Nonfood staples........................... 7.98 126.9 123.7 123.7 121.2 122.3 119.1 128.3 131.2 134.7 136.5 129.2 126.5 125.3 132. Consumer chemical products.. 2.64 133.2 123.9 125.7 125.7 131.2 132.4 142.2 131.8 139.4 145.2 139.1 136.8 124.6 127. Consumer paper products....... 1.91 107.9 99.6 101.8 100.1 107.1 102.0 110.2 109.6 113.9 116.0 113.9 110.7 108.9 110. Consumer fuel and lighting. .. 3.43 132.4 137.0 134.3 129.6 123.8 118.4 127.6 142.7 142.6 141.2 130.0 127.4 135.1 148. Residential utilities............... 2.25 140.2 146.7 143.0 137.1 129.2 122.3 132.4 154.4 153.2 153.0 136.6 132.5 141.7 163. Equipment Business equipment............................... 12.74 96.1 92.7 96.6 96.0 95.3 94.2 98.0 93.3 93.9 100.3 99.4 97.2 95.6 96. Industrial equipment....................... 6.77 92.4 90.8 93.9 92.8 92.4 90.3 92.6 90.4 90.1 94.9 94.3 93.6 92.2 92. Building and mining equip.......... 1.45 92.9 89.8 93.3 90.3 91.7 90.9 91.6 87.0 90.5 98.2 97.0 99.0 95.7 96. Manufacturing equipment.......... 3.85 81.4 81.9 84.3 82.9 82.0 79.1 81.5 79.3 78.5 83.3 81.9 81.1 80.8 80. Power equipment......................... 1.47 120.6 115.1 119.6 120.9 120.3 119.2 122.6 122.7 119.8 122.0 124.0 120.9 118.7 1-^0. Commercial, transit, farm eq.*. ... 5.97 100.3 94.8 99.7 99.7 98.5 98.6 104.2 96.6 98.3 106.5 105.2 101.3 99.4 100. Commercial equipment............... 3.30 108.6 101.8 105.3 104.7 105.3 106.0 112.4 112.6 110.7 115.6 112.0 109.4 107.4 105. Transit equipment....................... 2.00 89.0 87.1 91.5 91.0 88.9 89.0 93.8 75.1 82.6 92.3 95.3 91.0 89.8 91. Farm equipment.......................... .67 92.5 83.4 96.7 100.9 93.7 90.9 94.3 81.7 83.8 103.7 101.2 92.1 88.9 95. Defense and space equipment.............. 7.68 77.1 80.5 78.1 77.7 76.0 76.7 77.8 76.7 77.1 77.8 75.2 75.8 75.8 74. Military products............................. 5.15 80.4 82.8 80.3 80.1 78.9 79.7 81.8 80.8 81.6 82.2 78.7 78.9 78.6 11.' Intermediate products Construction products........................ 5.93 113.0 103.3 109.9 111.6 115.8 118.0 118.6 112.3 111.9 115.9 117.5 112.6 108.8 108. Misc. intermediate products............... 7.34 112.7 105.8 109.1 109.1 110.0 110.4 113.0 112.4 116.6 119.8 118.6 115.4 110.6 109. Materials Durable goods materials...................... 20.91 100.8 99.8 103.2 104.2 104.1 107.2 106.3 92.1 92.0 99.9 102.3 100.2 98.6 100. Consumer durable parts................. 4.75 101.4 102.9 104.6 104.5 102.0 106.4 104.5 88.3 92.0 100.1 104.2 103.8 104.0 104. Equipment parts.............................. 5.41 86.5 87.8 88.9 89.0 87.0 89.4 89.4 81.7 80.1 86.9 86.6 85.2 85.7 87. Durable materials n.e.c................... 10.75 107.8 104.4 109.8 111.8 113.7 116.6 115.6 99.1 98.0 106.3 109.4 106.2 102.7 105. Nondurable goods materials................. 13.99 113.8 110.9 113.3 112.0 113.7 114.3 115.8 107.2 114.5 114.8 117.4 117.5 114.4 115. Textile, paper, and chem. mat......... 8.58 116.0 110.4 114.3 112.8 115.6 116.0 118.0 106.5 116.9 118.7 121.3 123.0 119.2 119. Nondurable materials n.e.c............ 5.41 110.3 111.6 111.6 110.8 110.8 111.6 112.4 108.2 110.6 108.6 111.2 108.9 106.7 107. Fuel and power, industrial................. 2.89 116.3 119.9 120.5 121.9 121.4 119.5 120.4 111.4 117.7 118.3 98.5 105.7 119.9 120. Supplementary groups Home goods and clothing................... 9.34 106.8 99.1 104.9 105.9 106.9 106.9 110.6 100.2 109.3 112.6 115.7 108.9 100.9 106. Containers............................................ 1.82 116.7 112.6 119.2 108.1 113.8 119.6 119.1 113.0 121.2 120.1 123.5 118.0 111.7 113. 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

MARCH 1972 □ INDUSTRIAL PRODUCTION: N.S.A. A 63 INDUSTRY GROUPINGS (1967 = 100) 1967 1971 1972 pro­ 1971 Grouping por­ avertion ageP Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan.P Manufacturing, total............................ 88.55 104.8 100.9 104.3 104.4 105.0 106.0 108.3 99.7 103.1 108.1 109.2 106.2 102.1 103.8 Durable............................................ 52.33 98.9 96.8 100.2 100.6 100.4 101.7 102.7 93.2 93.6 100.6 101.6 98.9 96.0 98.0 Nondurable...................................... 36.22 113.3 106.8 110.2 109.8 111.7 112.1 116.3 109.2 116.8 119.0 120.1 116.8 110.9 112.0 Mining and utilities............................. 11.45 119.6 120.6 119.7 119.4 117.9 117.0 120.7 121.9 124.2 123.8 114.9 115.3 119.7 123.4 Mining.............................................. 6.37 106.9 108.7 108.6 109.7 110.4 110.9 111.0 103.0 107.7 106.4 98.0 101.8 107.5 105.4 Utilities............................................. 5.08 135.5 135.6 133.7 131.5 127.3 124.6 132.8 145.7 144.9 145.7 136.1 132.3 135.1 146.0 Durable manufactures Primary and fabricated metals............ 12.55 104.0 105.7 110.0 111. 0 112.0 114.6 111.1 95.8 90.0 99.0 101.5 98.9 97.9 102.7 Primary metals................................. 6.61 100.9 106.6 111.6 115.2 115.8 119.8 112.6 87.9 76.2 91.1 94.5 90.3 89.5 99.9 Iron and steel, subtotal............... 4.23 96.5 105.2 110.7 114.3 117.1 119.1 109.0 90.4 62.4 81.9 86.2 80.7 81.3 93.7 Fabricated metal products.............. 5.94 107.4 104.7 108.2 106.3 107.7 108.8 109.5 104.7 105.3 107.7 109.3 108.4 107.3 105.7 Machinery and allied goods................. 32.44 94.1 92.8 95.1 94.9 93.4 94.4 96.7 88.8 90.3 97.6 98.1 95.5 92.2 94.1 Machinery........................................ 17.39 95.4 92.4 96.0 95.8 94.9 94.8 97.0 92.2 92.6 99.5 99.4 96.8 94.4 96.1 Nonelectrical machinery............. 9.17 92.9 88.9 94.3 93.6 92.5 91.4 94.2 91.8 90.6 97.2 95.5 93.4 92.3 92.5 Electrical machinery.................... 8 22 98.2 96.3 97.8 98.3 97.5 98.6 100.2 92.6 94.9 102.0 103.8 100.6 96.7 100.0 Transportation equipment.............. 9.29 91.3 93.1 95.4 94.6 91.6 94.2 96.1 77.8 81.7 93.2 97.2 93.6 87.2 91.2 Motor vehicles and parts............ 4.56 111.6 112.9 118.9 117.7 112.0 116.9 120.5 86.1 93.5 114.4 122.4 117.5 105.9 116.5 Aerospace and misc. trans. eq. .. 4.73 71.9 74.1 72.8 72.3 72.0 72.4 72.6 69.7 70.4 72.8 73.0 70.6 69.2 66.9 Instruments...................................... 2.07 108.5 103.4 102.2 103.7 103.4 106.9 110.8 110.9 111.4 114.9 114.4 111 .0 109.2 107.9 Ordnance, private and Govt........... 3.69 87.0 88.4 86.3 86.2 85.2 86.2 89.2 88.1 88.9 89.8 85.0 85.2 85.1 84.5 Lumber, clay, and glass....................... 4.44 111.3 97.7 104.5 108.7 113.2 114.5 116.6 110.4 116.0 116.5 118.1 113.0 106.6 105.7 Lumber and products..................... 1.65 113.3 98.8 110.6 112.1 114.5 112.5 117.5 112.2 117.6 119.5 121.6 115.3 108.4 111.0 Clay, glass, and stone products___ 2.79 110.1 97.0 100.9 106.7 112.5 115.7 116.1 109.4 115.1 114.7 116.1 111.6 105.6 102.5 Furniture and miscellaneous................. 2.90 110.0 102.3 107.4 106.6 108.7 107.6 112.3 104.2 112.0 115.9 115.3 115.6 113.5 110.2 Furniture and fixtures..................... 1.38 98.7 96.2 100.7 98.5 98.6 95.8 99.3 86.8 98.0 101.8 100.6 104.6 103.4 103.3 Miscellaneous manufactures........... 1.52 120.3 107.9 113.6 114.0 117.9 118.4 124.1 120.0 124.8 128.8 128.7 125.6 122.7 116.5 Nondurable manufactures Textiles, apparel, and leather.............. 6.90 100.6 95.7 101.8 101.7 101.6 101.3 104.6 90.8 104.4 104.9 107.8 101.3 92.9 99.1 Textile mill products....................... 2.69 108.4 102.0 107.6 108.2 108.5 110.4 114.0 96.9 114.5 113.6 113.8 111.0 102.1 106.9 Apparel products............................. 3.33 97.8 92.3 99.4 99.4 99.3 97.4 100.8 89.9 100.4 102.4 107.3 98.1 88.1 Leather and products...................... .88 87.3 88.8 92.7 90.4 88.8 87.9 89.8 75.2 88.7 88.0 91.3 83.5 82.7 89.3 Paper and printing............................... 7.92 107.8 101.3 105.4 103.2 107.4 106.8 108.5 103.5 111.6 113.4 114.8 112.1 105.0 106.1 Paper and products......................... 3.18 116.0 115.5 118.9 113.6 117.8 116.2 116.6 105.7 117.6 116.1 122.1 120.5 111.0 119.9 Printing and publishing................... 4.74 102.2 91.7 96.4 96.2 100.4 100.5 103.1 102.1 107.5 111.5 109.9 106.5 100.9 96.8 Chemicals, petroleum, and rubber....... 11.92 124.4 114.7 119.4 119.7 122.2 123.2 128.6 121.6 126.7 130.7 129.9 129.0 125.8 124.5 Chemicals and products................. 7.86 125.9 115.1 118.9 119.5 124.3 125.3 131.1 124.2 128.6 133.1 130.8 131.2 127.6 126.2 Petroleum products......................... 1.80 115.8 112.4 113.5 112.0 110.9 111.7 119.1 118.9 120.9 118.9 117.8 115.2 116.5 113.3 Rubber and plastics products......... 2.26 126.1 115.3 125.8 126.4 124.0 125.0 127.7 114.8 124.7 131.9 136.6 132.2 126.9 127.6 Foods and tobacco............................... 9.48 113.5 109.5 108.8 108.8 109.6 110.5 115.9 112.0 117.7 119.4 121.2 116.8 110.3 110.7 8.81 114.6 109.7 109.2 110.2 110.9 111.4 117.2 114.0 118.6 120.4 122.3 118.2 112.7 112.1 Tobacco products............................ .67 97.7 106.4 103.0 90.5 92.7 99.3 98.5 86.2 105.7 106.5 106.1 99.0 78.7 Mining Metal, stone, and earth minerals......... 1.26 104.5 97.7 98.7 101.0 107.2 116.9 118.3 97.3 104.1 104.1 105.8 103.9 100.5 92.9 Metal mining................................... .51 121.4 115.0 118.3 117.9 126.1 145.7 147.7 106.8 116.9 118.7 117.9 114.8 111.3 106.4 Stone and earth minerals................ .75 93.2 86.0 85.3 89.5 94.4 97.4 98.3 90.9 95.4 94.2 97.6 96.6 93.1 83.7 Coal, oil, and gas................................. 5.11 107.5 111.4 111.0 111.8 111.2 109.4 109.2 104.4 108.6 107.0 96.0 101.3 109.2 108.5 Coal.................................................. .69 99.0 111.1 109.1 114.7 117.6 112.4 111.6 82.7 116.5 112.6 31.1 56.9 111.7 103.6 Oil and gas extraction..................... 4.42 108.9 111.4 111.3 111.3 114.1 108.9 108.8 107.8 107.4 106.1 106.2 108.2 108.8 109.3 Utilities Electric.................................................. 3.91 138.0 139.3 136.7 133.6 128.0 124.2 134.6 151.3 150.0 150.8 138.0 132.8 136.2 150.1 Gas........................................................ 1.17 127.0 123.0 123.6 124.3 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 □ MARCH 1972 SELECTED BUSINESS INDEXES (1967= 100, except as noted) Industrial production Manu­ Prices 4 facturing 2 In­ Ca­ Market dustry pacity Nonagutiliza­ Con­ ricul- Products tion struc­ tural Total Period Total Total Fin«il C p o r n o ­ diicts m In ed te ia r­ te M ria a l t s e­ f M a i c a n t n g u u r­ ­ i o = n ( u 1 m 1 9 tp 0 6 f 0 u 7 g ) t . tr c t a i o o c n t n s ­ T m p e o e l m o t n a y t ­ l — ­ i p m E lo e m n y ­ t ­ P ro a l y ls ­ s r a e l t e ai s l 3 s C um on e ­ r m W c s o o a h m d l o e i l ­ t e y ­ Total sumerEquip­ prod­ goods ment ucts 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 61.1 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 I960........................ 66.2 66.2 64.8 71.3 56.4 71.0 66.4 65.4 80.1 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 '82.1 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. i 86.1 87.8 76.0 79 91.7 94.5 1964........................ 81.7 81.2 79.6 86.8 70.1 87.3 82.6 81.2 85.5 89.4 88.6 89.3 80.1 83 92.9 94.7 1965........................ 89.2 88.1 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 87.7 113.2 103.1 101.4 108.3 109 104.2 102.5 1969........................ 110.7 109.7 109.0 111.1 106.1 112.0 112.4 110.5 86.5 123.7 106.7 103.2 116.6 114 109.8 106.5 1970........................ 106.7 106.0 104.4 110.3 96.1 111.9 107.8 105.2 '78.2 107.3 98.1 114.2 120 116.3 110,4 1971*...................... 106.5 106.2 104.5 115.6 88.9 112.8 106.8 104.8 '74.4 * i32Jo* 107.4 94.3 116.9 122 121.3 113.9 1971—Jan........... 105.3 104.6 102.9 112.8 88.9 110.9 106.5 103.3 ) 117.0 107.0 94.7 114.8 124 119.2 111.8 Feb........... 105.7 105.0 103.0 112.9 89.3 112.5 106.8 103.9 '74.7 126.0 106.9 94.4 115.0 126 119.4 112.8 Mar.......... 105.5 104.5 102.5 112.7 88.4 112.0 107.1 103.2 J 141.0 107.0 94.0 114.7 127 119.8 113.0 Apr........... 106.2 105.5 103.6 114.6 88.1 112.4 107.5 104.4 161.0 107.2 94.4 115.4 128 120.2 113.3 May......... 107.0 105.9 103.9 115.7 87.8 113.5 108.9 105.7 } '75.4 141.0 107.5 94.8 117.6 128 120.8 113.8 June......... 107.2 106.1 104.5 116.1 88.2 112.4 109.0 105.6 I 147.0 107.3 94.3 117.7 129 121.5 114.3 July.......... 106.1 106.8 104.9 116.0 89.3 113.8 105.3 104.9 j 151.0 107.1 93.9 116.8 129 121.8 114.6 Aug.......... 105.3 106.2 105.0 116.0 89.6 110.7 104.0 103.6 '73.9 153.0 107.1 93.5 116.5 133 122.1 114.9 Sept.......... 106.2 106.2 104.6 115.0 90.2 112.5 106.2 104.9 I 156.0 107.6 94.5 117.0 135 122.2 114.5 Oct........... 106.4 106.9 105.3 116.9 89.0 113.0 105.6 105.4 j 137.0 107.6 94.1 117.8 134 122.4 114.4 Nov.......... 107.0 107.6 105.9 118.2 88.8 114.0 106.0 105.3 '73.8 155.0 107.9 94.4 '118.4 136 122.6 114.5 Dec........... 107.6 107.6 105.6 117.7 88.6 114.9 107.5 105.7 J 160.0 108.1 '94.2 '121.1 '133 123.1 115.4 1972__Jan ........ 108.2 108.1 106.0 118.3 88.8 115.5 108.4 106.4 165.0 '108.7 '94.5 '122.0 '134 123.2 116.3 Feb p 109.0 108.7 106.7 119.0 89.5 116.1 109.7 107.2 108.9 94.6 123.7 117.3 1 Employees only: excludes personnel in the Armed Forces. Construction contracts: F. W. Dodge Co. monthly index of dollar 2 Production workers only. value of total construction contracts, including residential, nonresidential, 3 F.R. index based on Census Bureau figures. and heavy engineering; does not include data for Aiaska and Hawaii. 4 Prices are not seasonally adjusted. Employment and payrolls: Based on Bureau of Labor Statistics data; includes data for Alaska and Hawaii beginning with 1959. Note.—All series: Data are seasonally adjusted unless otherwise noted. Prices: Bureau of Labor Statistics data. Capacity utilization: Based on data from Federal Reserve, McGraw- Hill Economics Department, and Department of Commerce. CONSTRUCTION CONTRACTS AND PRIVATE HOUSING PERMITS (In millions of dollars, except as noted) 1971 1972 Type of ownership and 1970 1971 type of construction Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Total construction 1......................... 67,097 78,878 4,383 4,993 6,386 7,743 7,555 8,077 7,670 7,712 6,814 6,568 6,405 6,286 6,234 By type of ownership: Public........................................ 23,362 24,183 1,464 1,578 1,722 2,074 2,065 2,795 2,683 2,299 2,010 1,837 1 ,960 1,696 2,137 Private 1.................................... 45,058 56,408 2,919 3,415 4,663 5,669 5,489 5,489 4,987 5,413 4,804 4,731 4,445 4,590 4,097 By type of construction: Residential building 1.............. 24,910 35,226 1,631 1,819 2,729 3,168 3,310 3,485 3,357 3,255 3,196 3,170 3,001 2,997 Nonresidential building........... 24,180 26,577 1,711 1,654 2,199 2,080 2,264 2,800 2,621 2,120 2,246 2,064 2,128 1.959 Nonbuilding............................. 18,489 20,509 1,041 1,520 1,458 2,495 1,981 1,792 1,691 2,337 1,371 1,332 1,274 1.959 Private housing units authorized. .. 1,324 1,885 1,635 1,563 1,627 1,638 1,927 1,849 2,052 2,006 1,900 2,173 1,961 2,292 2,186 (In thousands, S.A., A.R.) i Because of improved collection procedures, data for 1-family homes Note.—Dollar value of construction contracts as reported by the F. W. beginning Jan. 1968 are not strictly comparable with those for earlier Dodge Co. does not include data for Alaska or Hawaii. Totals of monthly periods. To improve comparability, earlier levels may be raised by ap­ data exceed annual totals because adjustments—negative—are made into proximately 3 per cent for total and private construction, in each case, accumulated monthly data after original figures have been published. and by 8 per cent for residential building. Private housing units authorized are Census Bureau series for 13,000 reporting areas with local building permit systems. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ CONSTRUCTION A 65 VALUE OF NEW CONSTRUCTION ACTIVITY (In millions of dollars) Private Public Nonresidential Conser­ Period Total Total d R en e t s i i a ­ l Buildings Total M ta i r l y i­ H w ig ay h­ d v e a v & t e i l o o n p­ Other 2 Total Indus­ Com­ b O u t i h l e d r ­ Other ment trial mercial ings 1 1962 3 ___ 59,965 42,096 25,150 19,443 2,842 5,144 3,631 5,052 17,869 1,266 6,365 1963 4 ___ 64,563 45,206 27,874 21,735 2,906 4,995 3,745 5,376 19,357 1,179 7,084 1964 67,413 47,030 28,010 21,786 3,565 5,396 3,994 5,727 20,383 910 7,133 1965 73,412 51,350 27,934 21,714 5,118 6,739 4,735 6,491 22,062 830 7,550 1966 76,002 51,995 25,715 19,352 6,679 6,879 5,037 7,517 24.007 727 8,405 1967 77,503 51,967 25,568 18,985 6,131 6,982 4,993 8,356 25,536 695 8,591 1968 86,626 59,021 30,565 24,030 6,021 7,761 4,382 9,719 27,605 808 9,321 1969 93,347 65,384 33,200 25,941 6,783 9,401 4,971 10,288 27,963 879 9,252 1970 ...... 94,265 66,147 31,748 24,156 6,538 9,754 5,125 12,036 28,118 719 9,986 1971—Jan.. 100,645 70,637 35,629 35,008 6,169 10,262 5,334 13,243 30.008 856 620 Feb.. 102,340 70,743 36,509 34,234 6,258 10,106 5,009 12,861 31,597 812 566 Mar. 103,027 72,961 37,678 35,283 6,072 10,734 5,099 13,378 30,066 863 676 Apr.. 105,875 76,263 39,589 36,674 6,110 11,262 5,355 13,947 29,612 824 756 May. 107,591 77,880 41,500 36,380 5,766 11,038 5,289 14,287 29,711 848 702 June. 109,210 79,941 42,326 37,615 5,508 11,795 5.815 14,497 29,269 865 614 July. 109,957 80,484 42,689 37,795 5,428 12,690 5,499 14,178 29,473 1,142 150 Aug. 111,910 82,071 43,927 38,144 4,852 13,069 5,482 14,741 29,839 900 609 Sept. 110,031 81,442 44,739 36,703 4,597 11,702 5,591 14,813 28,573 786 570 Oct.. 113,680 81,837 45,067 36,770 4,993 11 ,510 5,372 14,895 31,843 881 540 Nov. 113,626 83,204 45,281 37,923 4,885 12,188 5,670 15,180 30,422 938 697 Dec.1 115,578 84,550 46,302 38,248 4.914 12,391 5,770 15,173 31,028 918 454 1972—Jan.. 118,316 86,772 48,497 38,275 4.914 13,198 5.816 14,347 31,544 1,025 1,914 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 North­ North 1- 2- to 4- 5- or east Central South West family family f m am or i e ly - Total Private Public Total FHA VA 1963......................... 1,610 261 328 591 431 1,021 5!89 1,642 1,610 32 292 221 71 151 1964......................... 1,529 253 339 582 355 972 108 450 1,562 1,529 32 264 205 59 191 1965......................... 1,473 270 362 575 266 964 87 422 1,510 1,473 37 246 197 49 216 1966......................... 1,165 207 288 473 198 779 61 325 1,196 1,165 31 195 158 37 217 1967......................... 1,292 215 337 520 220 844 72 376 1,322 1,292 30 232 180 53 240 1968......................... 1,508 227 369 619 294 900 81 527 1,548 1,508 40 283 227 56 318 1969......................... 1,467 206 349 588 323 810 87 571 1,500 1,467 33 288 237 51 413 1970......................... 1,434 218 294 612 310 813 85 536 1,467 1,434 33 479 418 61 401 1971......................... 2,051 263 434 869 485 1,151 120 780 1,467 1,434 33 479 418 61 401 1971—Jan.r............. 1,810 245 331 774 460 1,007 106 697 115 111 4 37 32 5 25 Feb. r............ 1,794 231 337 762 463 1,005 112 677 105 102 2 32 27 5 28 Mar.r............ 1,938 233 413 821 471 1,080 117 741 169 168 1 40 33 7 36 Apr.r............ 1,951 224 435 841 450 1,122 120 709 204 201 3 53 45 8 43 Mayr............ 2,046 257 412 860 517 1,152 115 779 204 199 5 49 41 8 41 Juner............ 2,008 250 396 864 498 1,150 127 731 197 194 3 55 46 9 47 July r............. 2,091 271 436 849 535 1,162 131 798 197 194 3 52 43 9 45 Aug. r............ 2,219 279 493 941 505 1,198 143 878 206 205 2 55 46 9 50 Sept.r............ 2,029 249 454 876 449 1,172 137 720 176 174 2 58 50 9 53 Oct.r............. 2,038 242 435 895 465 1,155 108 774 182 180 2 47 39 8 50 Nov.r............ 2,228 305 483 950 489 1,242 102 883 179 176 3 57 48 9 40 Dec. r............ 2,433 420 503 993 515 1,341 120 972 157 154 3 92 85 7 34 1972—Jan................ 2,549 456 501 994 598 1,448 128 973 156 154 2 37 24 13 Note.—Starts are Census Bureau series (including farm starts) except units under FHA, based on field office reports of first compliance inspec­ for Govt.-underwritten, which are from Federal Housing Admin, and tions. Data may not add to totals because of rounding. Veterans Admin, and represent units started, including rehabilitation Mobile home shipments are as reported by Mobile Homes Manufac­ turers Assn. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 66 EMPLOYMENT □ MARCH 1972 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT (In thousands of persons, except as noted) Civilian labor force (S.A.) Period i p T n o ( s o N t p t i a t u .S u l l t a . n A i t o o i . o n n ) a n - l la ( b N N o . o r S t . f A i o n . r ) ce T ( l f S a o o b . r A t c o a e r . l ) Total Total E In m c n u p o l l t n o u a y r g a e l r d i- 1 In U pl n o e y m ed ­ U (p n e e m r S r a m . e A t c e n p e . 2 t l ) n o t y ; ­ industries agriculture 196 6 131,180 52,288 78,893 75,770 72,895 68,915 3,979 2,875 3.8 1967 3........ 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 84.240 80,734 77,902 74,296 3,606 2,832 3.5 197 0 140,182 54,280 85,903 82,715 78,627 75,165 3,462 4,088 4.9 197 1 142,596 55,666 86,929 84,113 79,120 75,732 3.387 4,993 5.9 1971—Feb.. 141,670 56,017 86,311 83,361 78,475 75,190 3,285 4,886 5.9 Mar. 141.885 56,286 86,385 83,455 78,446 75,059 3.387 5,009 6.0 Apr., 142,088 56,308 86,670 83,788 78,732 75,192 3,540 5,056 6.0 May 142,285 56,331 86,836 83,986 78,830 75,418 3,412 5,156 6.1 June 142,482 54,698 86,217 83,401 78,600 75,299 3,301 4,801 5.8 July. 142,685 53,877 86,727 83,930 79,014 75,640 3,374 4,916 5.9 Aug. 142.886 54,433 87,088 84,313 79,199 75,792 3,407 5,114 6.1 Sept. 143,104 56,220 87.240 84,491 79,451 76,088 3,363 5,040 6.0 Oct.. 143,321 55,968 87,467 84,750 79,832 76,416 3,416 4,918 5.8 Nov. 143,517 55,802 87,812 85,116 80,020 76,601 3,419 5,096 6.0 Dec. 143,723 56,181 87,883 85,225 80,098 76,698 3,400 5,127 6.0 1972—Jan., 144,697 57,550 88,301 85,707 80,636 77,243 3,393 5,071 5.9 Feb. 144,895 57,577 88,075 85,535 80,623 77,266 3,357 4,912 5.7 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 ri u n f g ac­ Mining c C o o n t n i s o t t r n r a u c c t ­ T t l i i o r c a n n u & s ti p l i o p ti r u e t b a s ­ ­ Trade Finance Service G m ov e e n r t n­ 1966......................................................... 63,955 19,214 627 3,275 4,151 13,245 3,100 9,551 10,792 1967......................................................... 65,857 19,447 613 3,208 4,261 13,606 3,225 10,099 11,398 1968......................................................... 67,915 19,781 606 3,285 4,310 14,084 3,382 10,623 11,845 1969......................................................... 70,284 20,167 619 3,435 4,429 14,639 3,564 11,229 12,202 1970......................................................... 70,616 19,369 622 3,345 4,504 14,922 3,690 11,630 12,535 1971......................................................... 70,699 18,610 601 3,259 4,481 15,174 3,800 11,917 12,858 seasonally adjusted 1971—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............................................... 70,529 18,457 609 3,219 4,428 15,223 3,804 11,946 12,843 Sept.............................................. 70,853 18,616 616 3,250 4,460 15,273 3,821 11,962 12,855 Oct................................................ 70,848 18,560 521 3,290 4,442 15,270 3,834 11,996 12,935 Nov.............................................. 71,042 18,603 525 3,320 4,434 15,278 3,851 12,044 12,987 Dec............................................... 71,185 18,566 607 3,245 4,465 15,315 3,860 12,089 13,038 1972—Jan.P............................................ 71,603 18,611 615 3,318 4,511 15,451 3,876 12,135 13,086 Feb.P............................................ 71,686 18,627 613 3,236 4,499 15,514 3,882 12,185 13,130 not seasonally adjusted 1971—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 Apr............................................... 70,309 18,482 617 3,164 4,469 14,974 3,758 11,867 12,978 May.............................................. 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............................................... 70,542 18,651 625 3,509 4,486 15,151 3,865 11,994 12,261 Sept.............................................. 71,184 18,840 623 3,471 4,509 15,242 3,829 11,986 12,684 Oct................................................ 71,379 18,709 522 3,478 4,455 15,327 3,826 12,020 13,042 Nov............................................... 71,638 18,693 524 3,410 4,447 15,537 3,836 12,032 13,159 Dec............................................... 72,034 18,595 605 3,177 4,469 16,089 3,841 12,029 13,229 1972—Jan.p............................................ 70,661 18,441 601 2,963 4,439 15,270 3,837 11,941 13,169 Feb.p............................................ 70,733 18,475 597 2,880 4,427 15,166 3,847 12,039 13,302 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 bench­ mark. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ EMPLOYMENT AND EARNINGS A 67 PRODUCTION WORKER EMPLOYMENT IN MANUFACTURING INDUSTRIES (In thousands of persons) Seasonally adjusted1 Not seasonally adjusted! Industry group 1971 1972 1972 Jan.* Feb. Dec. Jan.* Feb.* Total................................................................................ 13,507 13,474 13,523 13,539 13,378 13,514 13,372 13,408 Durable goods.............................................................. 7,625 7,594 7,625 7,640 7,591 7,629 7,578 7,602 Ordnance and accessories............................. 102 90 90 89 104 91 90 89 Lumber and wood products........................ 486 516 519 509 472 508 501 494 Furniture and fixtures...................................... 369 391 394 393 367 395 394 391 Stone, clay, and glass products.................. 494 502 510 507 476 497 491 489 Primary metal industries............................... 997 920 930 929 998 916 926 930 Fabricated metal products........................... 1,006 1,011 1,016 1,026 1,001 1,024 1,014 1,021 Machinery.......................................................... 1,183 1 ,174 1,170 1.174 1,195 1,170 1,170 1,186 Electrical equipment and supplies............. 1,177 1.191 1,195 1,206 1,175 1,204 1,197 1,203 Transportation equipment........................... 1,237 1,221 1,218 1,215 1,246 1.245 1,231 1,223 Instruments and related products.............. 256 259 259 264 256 261 259 263 Miscellaneous manufacturing industries.. 318 319 324 328 303 317 306 313 Nondurable goods...................................................... 5,882 5,880 5,898 5,899 5,787 5,885 5,794 5,806 Food and kindred products......................... 1,186 1,175 1,185 1,176 1,111 1,164 1,122 1,100 Tobacco manufactures.................................. 66 57 58 59 63 61 58 57 Textile-mill products...................................... 841 855 863 865 837 858 857 861 Apparel and related products..................... 1,189 1,185 1,180 1,185 1,192 1,184 1.165 1,188 Paper and allied products............................. 529 529 529 528 524 533 525 523 Printing, publishing, and allied industries 671 661 664 663 669 668 661 661 Chemicals and allied products.................... 586 580 580 580 584 578 574 578 Petroleum refining and related industries. 118 118 114 115 113 115 110 110 Rubber and misc. plastic products.............. 433 459 463 464 433 463 461 464 Leather and leather products....................... 263 261 262 264 263 263 262 265 1 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 worked1 Average weekly earnings1 Average hourly earnings1 (per week; S.A.) (dollars per week; N.S.A.) (dollars per hour; N.S.A.) Industry group 1971 1972 1971 1972 1971 1972 Feb. Dec. Jan.* Feb.* Feb. Dec. Jan.* Feb.* Feb. Dec. Jan.* Feb.* 39.8 40.3 40.0 40.4 138.29 150.18 147.26 148.40 3.51 3.69 3.70 3.71 Durable goods..................................................... 40.3 40.9 40.5 41.0 149.23 162.70 158.78 160.37 3.74 3.93 3.94 3.95 Ordnance and accessories.......................... 41.4 42.0 41.6 42.9 155.32 168.75 168.40 172.94 3.77 3.98 4.00 4.05 Lumber and wood products...................... 39.8 40.8 40.8 40.6 120.26 130.15 127.28 126.72 3.06 3.19 3.19 3.16 Furniture and fixtures................................ 39.6 39.9 40.5 40.8 109.91 121.88 118.90 118.90 2.84 2.98 2.98 2.98 Stone, clay, and glass products................. 41.3 41.6 41.8 42.1 144.13 155.58 153.38 155.70 3.55 3.74 3.75 3.77 Primary metal industries........................... 40.6 41.0 40.4 41. 1 165.65 184.50 183.87 187.37 4.09 4.50 4.54 4.57 Fabricated metal products......................... 40.4 40.9 40.5 41. 1 146.07 159.83 155.98 157.14 3.67 3.87 3.88 3.88 Machinery................................................... 40. 1 41.3 41.0 41.4 156.39 174.30 170.97 173.05 3.90 4.16 4.17 4.18 Electrical equipment and supplies............. 39.7 40.3 40.0 40.4 134.46 147.24 144.04 144.04 3.43 3.60 3.61 3.61 Transportation equipment......................... 41.5 41.7 40.5 41.2 181.15 196.35 185.84 186.30 4.44 4.62 4.60 4.60 Instruments and related products............. 39.7 40.4 40.5 40.3 136.76 147.70 146.69 144.84 3.48 3.62 3.64 3.63 Miscellaneous manufacturing industries... 38.4 39.2 39.0 39.5 111.72 120.48 118.42 119.65 2.94 3.05 3.06 3.06 Nondurable goods............................................... 39.1 39.5 39.4 39.7 123.84 133.73 132.16 133.23 3.20 3.36 3.38 3.39 Food and kindred products....................... 40.7 40.3 40.0 40.0 132.80 142.51 139.35 139.00 3.32 3.51 3.51 3.51 Tobacco manufactures............................... 36.1 35.6 34.7 33.7 107.51 118.44 112.88 111.55 3.02 3.29 3.32 3.36 Textile-mill products.................................. 40.2 41.0 41.3 41.2 101.60 108.73 109.34 111.11 2.54 2.62 2.68 2.71 Apparel and related products................... 35.0 35.9 35.8 36.2 86.06 91.55 90.62 92.26 2.48 2.55 2.56 2.57 Paper and allied products.......................... 41.8 42.3 42.1 42.8 148.21 162.64 159.64 162.39 3.58 3.80 3.81 3.83 Printing, publishing, and allied industries. 37.4 37.5 37.5 37.6 151.37 165.68 161.01 161.88 4.08 4.36 4.34 4.34 Chemicals and allied products................... 41.5 41.7 41.7 41.9 158.59 170.11 170.15 170.97 3.84 4.06 4.10 4.10 Petroleum refining and related industries . 42.9 42.7 42.3 42.8 189.93 196.70 202.73 205.94 4.49 4.65 4.85 4.88 Rubber and misc. plastic products........... 39.9 40.9 40.7 41.0 131.47 145.44 142.97 144.49 3.32 3.53 3.53 3.55 Leather and leather products..................... 36.9 37.9 38.1 38.9 95.20 102.56 102.26 104.64 2.58 2.65 2.67 2.69 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 □ MARCH 1972 CONSUMER PRICES (1967 = 100) Housing Health and recreation Period it A em ll s Food Total Rent H ow s o h m n ip e e r - - F c a o o u n i a e d l l l t e r G a i l c n e a i c d s t ­ y o n F i p a n i n u e s g h r d r s a ­ ­ ­ A up p a k p n e a d e re p l T p t o r i a o r n t n a s ­ ­ Total M c ic a e a r d e l ­ s c P o a e n r r a e ­ l r R e a i c e n n r a g d e d a ­ ­ g O s a o e t n o r h v d d e ­ s r tion tion ices 1929......................... 51.3 48.3 76.0 48.5 1933......................... 38.8 30.6 54.1 36.9 1941......................... 44.1 38.4 53.7 57.2 40.5 81.4 44.8 44.2 37.0 41.2 47.7 49.2 1945......................... 53.9 50.7 59.1 58.8 48.0 79.6 61.5 47.8 42.1 55.1 62.4 56.9 1960......................... 88.7 88.0 90.2 91.7 86.3 89.2 98.6 93.8 89.6 89.6 85.1 79.1 90.1 87.3 87.8 1961......................... 89.6 89.1 90.9 92.9 86.9 91.0 99.4 93.7 90.4 90.6 86.7 81.4 90.6 89.3 88.5 1962......................... 90.6 89.9 91.7 94.0 87.9 91.5 99.4 93.8 90.9 92.5 88.4 83.5 92.2 91.3 89.1 1963......................... 91.7 91.2 92.7 95.0 89.0 93.2 99.4 94.6 91.9 93.0 90.0 85.6 93.4 92.8 90.6 1964......................... 92.9 92.4 93.8 95.9 90.8 92.7 99.4 95.0 92.7 94.3 91.8 87.3 94.5 95.0 92.0 1965......................... 94.5 94.4 94.9 96.9 92.7 94.6 99.4 95.3 93.7 95.9 93.4 89.5 95.2 95.9 94.2 1966......................... 97.2 99.1 97.2 98.2 96.3 97.0 99.6 97.0 96.1 97.2 96.1 93.4 97.1 97.5 97.2 1967......................... 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 1968......................... 104.2 103.6 104.2 102.4 105.7 103.1 100.9 104.4 105.4 103.2 105.0 106.1 104.2 104.7 104.6 1969......................... 109.8 108.9 110.8 105.7 116.0 105.6 102.8 109.0 111.5 107.2 110.3 113.4 109.3 108.7 109.1 1970......................... 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 1971......................... 121.3 118.4 124.3 115.2 133.7 117.5 114.7 118.1 119.8 118.6 122.2 128.4 116.8 119.3 120.9 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............... t122.1 120.0 125.1 115.8 134.4 117.8 115.7 119.1 119.0 1119 - 3 123.1 130.0 117.5 119.7 121.8 Sept............... t122.2 119.1 125.5 116.1 135.1 117.8 115.7 119.4 120.6 ti 18.6 123.6 130.4 117.6 120.5 122.4 Oct................ 1122.4 118.9 125.9 116.4 135.7 117.8 115.7 119.5 121.6 1119.3 123.5 129.6 117.9 120.5 122.6 Nov............... 122.6 119.0 126.4 116.6 136.7 118.1 116.2 119.5 121.9 118.8 123.7 129.7 117.9 120.8 122.8 Dec............... 123.1 120.3 126.8 116.9 137.0 118.1 118.2 119.6 121.8 118.6 123.9 130.1 117.9 121.1 123.0 1972—Jan................ 123.2 120.3 127.3 117.1 137.8 118.7 119.0 119.5 120.2 119.0 124.3 130.5 118.1 121.4 123.5 Note.—Bureau of Labor Statistics index for city wage-earners and clerical workers, t Reflects effect of refund of Federal excise tax on new cars. WHOLESALE PRICES: SUMMARY (1967 = 100) Industrial commodities Pro­ All Period m c t o i o e m d s i ­ ­ p F u r a c o r t d m s ­ c f f e o a e s n o e s d d d e s d s Total t T e il e t e c x s . ­ , H e i t d c e . s, F e u tc e . l, C ic e h a t e c l m s . , ­ R b e u t e c r b . , ­ L b e u t e c m r . , ­ P e a t p c e . r, M e a t l e c s, . t­ e c M a q e h n r u i a y d n i ­ p ­ ­ F t e u u t r r c e n . , i­ N t e m m a r o l a i e l n n l i - s c ­ - T e p m t q r o i e o a u r n n n i t t p a s ­ ­ ­ 1 n c M e e o l i l u s a ­ s ­ ment 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 99.9 105.3 125.3 104.0 108.5 106.5 104.9 107.7 100.8 105.2 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 1971............................. 113.9 112.9 114.3 114.0 108.6 114.0 114.2 104.2 109.2 127.0 110.1 119.0 115.5 109.9 122.4 110.3 112.8 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 Oct................... 114.4 111.3 114.1 115.0 109.6 114.7 114.8 104.2 109.5 131.8 110.6 121.0 116.0 110.2 124.1 110.7 113.0 Nov.................. 114.5 112.2 114.4 114.9 109.8 115.1 114.7 103.8 109.5 131.3 110.6 120.9 115.9 110.2 124.0 110.8 113.1 Dec................... 115.4 115.8 115.9 115.3 110.6 116.2 115.0 103.4 109.4 132.7 110.7 120.8 116.2 110.2 124.2 112.9 113.2 1972—Jan.................... 116.3 117.8 117.2 115.9 111.3 117.8 116.0 103.4 109.5 134.9 110.8 121.4 116.5 110.2 124.3 113.4 113.7 1 For transportation equipment, Dec. 1968=100. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ PRICES A 69 WHOLESALE PRICES: DETAIL (1967=100) 1971 1971 1972 1971 1971 1972 Group Group Jan. Nov. Dec. Jan. Jan. Nov. Dec, Jan. Farm products: Pulp, paper, and allied products: Fresh and dried produce.................... 115.7 127.1 126.3 124.9 Pulp, paper and products, excluding Grains................................................... 111.0 87.8 95.3 94.1 building paper and board............. 109.4 110.9 111.0 111.1 Livestock............................................. 102.2 121.0 124.7 132.2 Woodpulp.......................................... 112.2 111.5 111.5 111.5 Live poultry........................................ 96.3 92.3 87.2 94.3 Wastepaper........................................ 107.8 117.2 124.6 124.9 Plant and animal fibers....................... 87.0 97.3 102.5 109.5 Paper.................................................. 112.6 114.7 114.7 114.9 Fluid milk........................................... 117.6 118.8 119.0 120.5 Paperboard......................................... 99.3 102.9 102.7 102.7 Eggs..................................................... 113.3 88.5 114.4 92.6 Converted paper and paperboard... 109.3 110.1 110.1 110.3 Hay and seeds...................................... 108.7 109.0 109.2 108.7 Building paper and board................ 100.1 104.7 104.6 104.7 Other farm products............................ 119.9 111.8 117.3 118.0 Processed foods and feeds: Metals and metal products: Cereal and bakery products............... 111.0 111.5 111.6 112.2 Meat, poultry, and fish....................... 108.6 117.1 120.4 125.4 Iron and steel................................. 117.6 125.3 125.3 126.8 Dairy products................................... 112.8 116.3 117.4 117.3 Steelmill products......................... 116.8 128.2 128.2 129.6 Processed fruits and vegetables.......... 111.2 115.4 115.8 116.0 Nonferrous metals......................... 115.4 116.0 114.9 114.4 Sugar and confectionery.................... 118.6 119.1 120.2 120.1 Metal containers........................... 115.8 124.2 124.2 124.2 Beverages and beverage materials 115.0 116.6 116.4 116.4 Hardware....................................... 115.3 117.7 117.7 118.4 Animal fats and oils........................... 114.6 130.1 122.3 121.4 Plumbing equipment..................... 113.2 118.3 118.4 118.2 Crude vegetable oils........................... 124.9 128.6 118.2 114.2 Heating equipment....................... 113.6 116.5 116.3 115.9 Refined vegetable oils......................... 141.0 130.4 122.7 121.0 Fabricated structural metal products 115.2 120.3 120.4 121.6 Vegetable oil end products................ 119.4 122.8 122.0 121.7 Miscellaneous metal products.......... 117.7 119.7 120.9 121.3 Miscellaneous processed foods.......... 111.8 113.0 113.1 113.6 Manufactured animal feeds............... 108.1 100.3 104.5 103.8 Textile products and apparel: Machinery and equipment: C W o o t o to l n p r p o r d o u d c u t c s t .. s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 0 6 7. . 1 2 1 9 1 2 2 . . 3 5 1 9 1 1 3 . . 5 6 1 9 1 2 6 . .7 0 C A o g n ri s c t u ru lt c u t r i a o l n m m a a c c h h in in e e ry ry a a n n d d e e q q u u ip ip .. . . . 1 1 1 2 6 0 . . 3 2 1 1 1 2 7 2 . . 5 0 1 1 1 2 8 3 . . 6 2 1 1 1 24 9 . . 3 9 Manmade fiber textile products 97.2 103.2 104.3 105.4 Metalworking machinery and equip. 115.2 118.2 118.4 118.5 Apparel................................................ 112.3 113.8 113.8 113.8 General purpose machinery and Textile housefurnishings.................... 103.3 104.1 106.1 106.2 equipment..................................... 117.0 120.2 120.5 120.8 Miscellaneous textile products.......... 106.8 121.2 136.2 137.4 Special industry machinery and equipment.................................... 119.3 122.0 122.1 122.6 Hides, skins, leather, and products: Electrical machinery and equip.... 108.8 109.3 109.3 109.5 Miscellaneous machinery............... 116.1 117.8 117.9 118.3 Hides and skins.................................. 98.9 123.1 128.6 136.0 Leather................................................ 108.2 113.5 117.0 120.0 O Fo th o e t r w l e e a a r t . h .. e . r .. . p .. r .. o .. d .. u .. c .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 11 07 6 . . 4 0 1 1 0 1 9 7. .1 1 1 1 1 0 7 9 . . 1 8 1 1 1 1 8 0 . . 1 6 Furniture and household durables: Fu E C C G el l o o a s e s k a c a t e l f n r . . u . i d . . c . e . . . r . l . p . s . e . . . . o l . . . a . . . w . . . t . . . . e . . . e . . d . . . . r . . . p . . . . . . . . r . . . . . . . o . . . . . . . . d . . . . . . . . u . . . . . . . . . c . . . . . . . t . . . . s . . . . . , . . . . . . . . . . . a . . . . . . . . n . . . . . . . . . d . . . . . . . . . . . p . . . . . . . . o . . . . . . . . w . . . . . . . . . e . . . . . . . . r . . . . . . . : . . . . . . . . . .. 1 1 1 1 0 0 4 7 9 9 5 6 . . . . 3 8 9 0 1 1 1 1 5 0 1 8 0 8 6 2 . . . . 5 9 8 2 1 1 1 1 9 5 0 1 0 0 7 6 . . . . 5 3 2 9 1 1 1 1 5 1 9 1 0 8 2 0 . . . . 5 9 7 0 H O C H H Fl o o t o o o h m m u u o e s s m r r e e e h c h h e e o o o o r le c v u l l d c d i e s a t e r r l a f i h o u n p f o n u r g p i l n r s l d c i n i . a t . e i . d u n . t q . u u r c . u e . r e r . i a . e . s . p . b . . . . . m . . . l . . . . e . . . . . . . . e . . . . . g . . . n . . . . . o . . . t . . . . . . o . . . . . . . . . . . . . d . . . . . . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 1 1 9 0 1 1 0 1 4 2 7 0 7 9 . . . . . . 5 4 9 8 0 4 1 1 1 1 9 9 1 1 0 2 7 3 5 8 7 2 . . . . . . 6 4 4 2 6 0 1 1 1 1 9 9 2 1 1 0 7 3 2 5 8 7 . . . . . . 1 9 5 4 2 4 1 1 1 1 9 9 0 2 1 1 8 3 8 6 2 6 . . . . . . 1 3 9 3 3 0 Crude petroleum................................. 113.2 113.2 113.2 113.2 Petroleum products, refined.............. 107.9 106.2 106.1 106.1 Nonmetallic mineral products: Chemicals and allied products: Flat glass............................................ Industrial chemicals........................... 101.8 101.7 101.1 101.4 Concrete ingredients......................... 123.1 123.1 123.6 123.6 P Pr a e in p t a r m ed a t p e a ri i a n l t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 1 0 4 3 . . 5 6 1 9 1 9 5 . . 7 9 1 1 1 0 5 1. . 9 9 1 10 16 2. . 7 2 C St o r n u c c r tu et r e a l p r c o la d y u c p t r s o .. d ... u ... c .. t .. s .. ... e .. x ... c .. l . u ... d .. i .. n .. g .... 1 11 1 7 7 . . 1 6 1 1 2 2 4 2 . . 3 6 1 12 2 2 4. .9 2 1 1 2 2 4 3 . . 4 4 Drugs and pharmaceuticals............... 101.9 102.4 102.5 102.3 refractories..................................... Fats and oils, inedible....................... 133.7 125.3 115.9 111.3 Refractories....................................... 111.4 114.9 114.9 114.8 Agricultural chemicals and products. 91.7 90.3 90.3 90.3 Asphalt roofing................................. 126.7 127.1 127.1 127.1 Plastic resins and materials................ 89.5 89.2 89.0 88.6 Gypsum products.............................. 108.8 131.2 131.2 131.2 Other chemicals and products.......... 111.0 112.5 112.4 112.4 Glass containers................................ 97.0 112.1 114.1 113.4 Other nonmetallic minerals.............. 131.9 131.5 131.5 131.5 Rubber and plastic products: 121.0 125.6 125.6 125.7 Crude rubber....................................... 99.5 98.5 98.5 99.2 Tires and tubes................................... 107.5 110,8 110.8 110.3 Transportation equipment: Miscellaneous rubber products......... 117.0 119.2 119.2 119.7 Plastic construction products (Dec. Motor vehicles and equipment. 1969 = 100)............................................. 95.3 94.1 93.8 93.7 Railroad equipment................... 113.9 115.3 117.5 117.9 Unsupported plastic film and sheeting 119.0 122.5 122.6 123.7 (Dec. 1970=100)................................. 100.0 100.1 100.0 100.0 Laminated sheets, high pressure (Dec. 1970=100)................................. 100.7 98.0 97.9 98.2 Miscellaneous products: Lumber and wood products: Toys, sporting goods, small arms, ammunition................................. 111.7 112.8 113.1 113.5 Lumber................................................ 113.0 141.9 143.8 146.9 Tobacco products........................... 116.8 116.8 116.7 117.4 Millwork............................................. 114.2 123.7 124.3 124.9 Notions............................................ 111.3 111.7 111.7 111.7 Plywood.............................................. 104.9 115.9 117.8 120.2 Photographic equipment and supplies 105.6 106.5 106.5 106.4 Other wood products......................... 117.8 119.5 119.1 119.6 Other miscellaneous products.... 111.3 112.9 113.0 113.9 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 □ MARCH 1972 GROSS NATIONAL PRODUCT (In billions of dollars) 1970 1971 Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 IV I II III IV 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.11,046.8 988.41,020.81,040.01,053.4 1,072.9 Final purchases.................................................. 101.4 57.2 120.1 278.0 785.7 857.1 921.7 971.31,044.5 984.71,017.71,035.41,054.6 1,070.4 Personal consumption expenditures................. 77.2 45.8 80.6 191.0 492.1 536.2 579.6 615.8 662.1 624.7 644.9 657.4 668.8 677.2 Durable goods.............................................. 9.2 3.5 9.6 30.5 73.1 84.0 89.9 88.6 100.5 84.9 96.6 99.1 102.8 103.6 Nondurable goods........................................ 37.7 22.3 42.9 98.1 215.0 230.8 247.6 264.7 278.6 270.9 273.2 277.8 280.2 283.3 Services.......................................................... 30.3 20.1 28.1 62.4 204.0 221.3 242.1 262.5 282.9 268.9 275.0 280.5 285.8 290.3 Gross private domestic investment................... 16.2 1.4 17.9 54.1 116.6 126.0 137.8 135.3 151.6 137.3 143.3 152.9 150.8 159.4 14.5 3.0 13.4 47.3 108.4\ 118.9 130.4 132.5 149.3 133.6 140.2 148.3 152.0 157.0 Nonresidential............................................ 10.6 2.4 9.5 27.9 83.31 88.8 98.6 102.1 108.7 100.8 104.7 108.3 109.3 112.6 Structures.............................................. 5.0 .9 2.9 9.2 28.0 30.3 34.5 36.8 38.2 37.1 36.7 38.5 38.7 39.0 5.6 1.5 6.6 18.7 55.3 58.5 64.1 65.4 70.5 63.7 68.1 69.8 70.6 73.6 Residential structures............................... 4.0 .6 3.9 19.4 25.1 30.1 31.8 30.4 40.6 32.8 35.4 40.0 42.7 44.4 Nonfarm................................................ 3.8 .5 3.7 18.6 24.5 29.5 31.2 29.7 40.1 32.2 35.0 39.5 42.1 43.8 Change in business inventories.......... .... 1.7 -1.6 4.5 6.8 8.2 7.1 7.4 2.8 2.2 3.7 3.1 4.6 -1.2 2.4 Nonfarm.................................................... 1.8 -1.4 4.0 6.0 7.5 6.9 7.3 2.5 1.7 3.3 2.9 4.1 -2.0 2.0 Net exports of goods and services................... 1.1 .4 1.3 1.8 5.2 2.5 2.0 3.6 2.7 4.7 .1 -4.6 Exports.......................................................... 7.0 2.4 5.9 13.8 46.2 50.6 55.6 62.9 65.3 63.2 66.2 66.5 68.2 60.4 Imports.......................................................... 5.9 2.0 4.6 12.0 41.0 48.1 53.6 59.3 65.3 60.5 61.5 66.4 68.2 65.0 Government purchases of goods and services.. 8.5 8.0 24.8 37.9 180.1 199.6 209.7 219.4 233.0 223.7 227.9 229.6! 233.8 240.8 Federal.......................................................... 1.3 2.0 16.9 18.4 90.7i 98.8' 99.2’ 97.21 97.6 95.9 96.4 96.0i 97.6 100.3 National defense...................................... 13.8 14.1 72.4J 78 3 78.4 75.4 71.4 73.2 72.6 71.41 70.2 71.4 Other......................................................... 3.1 4.3 18.4' 20.5 20.7 21.9 26.2 22.7 23.7 24.6 27.4 28.9 State and local.............................................. 7.2 6.0 7.9 19.5 89.4 100.8 110.6 122.2 135.5 127.9 131.6 133.6 136.2 140.5 ! Gross national product in constant (1958) dollars............................................................ 203.6 141.5 263.7 355.3i 675.2 706.6. 724.7 720.0• 739.4 715.9 729.7 735.8 740.7 751.3 1 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, J971, and Supplement, Aug. 1966. NATIONAL INCOME (In billions of dollars) 1970 1971 1929 1933 1941 1950 1967 1968 1969 1970 1971P Item IV I II III IV* National income................................................ 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 850.8 802.1 831.7 847.3 855.2 Compensation of employees............................. 51.1 29.5 64.8 154.6 467.2 514.6 565.5 601.9 641.9 609.3 627.3 638.0 645.6 656.6 Wages and salaries..................................... 50.4 29.0 62.1 146.8 423.1 464.9 509.6 541.4 574.2 547.2 561.4 571.0 577.3 587.0 Private..................................................... 45.5 23.9 51.9 124.4 337.3 369.2 405.5 426.6 450.4 429.9 440.3 448.4 452.3 460.3 Military..................................................... .3 .3 1.9 5.0 16.2 17.9 19.0 19.4 18.6 18.6 19.2 18.6 18.0 18.6 Government civilian................................ 4.6 4.9 8.3 17.4 69.5 77.8 85.1 95.5 105.2 98.6 101.8 104.0 106.9 108.1 Supplements to wages and salaries............. .7 .5 2.7 7.8 44.2 49.7 56.0 60.5 67.7 62.1 65.9 67.0 68.3 69.6 Employer contributions for social in­ surance ................................................ .1 .1 2.0 4.0 21.9 24.3 27.8 29.6 34.0 30.1 33.3 33.6 34.2 35.0 Other labor income................................ .6 .4 .7 3.8 22.3 25.4 28.2 30.8 33.7 32.0 32.6 33.4 34.1 34.6 Proprietors’ income......................................... 15.1 5.9 17.5 37.5 62.1 64.2 67.0 66.9 68.3 65.9 66.4 67.2 69.2 70.5 Business and professional.......................... 9.0 3.3 11.1 24.0 47.3 49.5 50.3 51.0 52.1 51.5 51.6 51.9 52.3 52.5 Farm............................................................ 6.2 2.6 6.4 13.5 14.8 14.7 16.8 15.8 16.3 14.4 14.8 15.2 17.0 18.1 Rental income of persons............................... 5.4 2.0 3.5 9.4 21.1 21.2 22.6 23.3 24.3 23.7 23.8 24.2 24.5 24.6 Corporate profits and inventory valuation adjustment................................................... 10.5 -1.2 15.2 37.7 78.7 84.3 78.6 70.8 80.7 69.0 79.5 82.5 80.0 Profits before tax....................................... 10.0 1.0 17.7 42.6 79.8 87.6 84.2 75.4 85.2 71.6 83.0 86.9 85.8 Profits tax liability.................................. 1.4 .5 7.6 17.8 33.2 39.9 39.7 34.1 37.8 32.3 38.3 39.1 37.5 Profits after tax....................................... 8.6 .4 10.1 24.9 46.6 47.8 44.5 41.2 47.4 39.2 44.8 47.8 48.2 Dividends............................................ 5.8 2.0 4.4 8.8 21.4 23.6 24.4 25.0 25.5 25.0 25.6 25.4 25.7 25.3 Undistributed profits.......................... 2.8 -1.6 5.7 16.0 25.3 24.2 20.0 16.2 21.9 14.3 19.2 22.4 22.5 Inventory valuation adjustment................ .5 -2.1 -2.5 -5.0 -1.1 -3.3 -5.5 -4.5 -4.4 -2.6 -3.5 -4.4 -5.8 -4.0 Net interest...................................................... 4.7 4.1 3.2 2.0 24.4 26.9 29.9 33.0 35.6 34.2 34.8 35.4 35.9 36.4 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

MARCH 1972 □ NATIONAL PRODUCT AND INCOME A 71 RELATION OF GROSS NATIONAL PRODUCT, NATIONAL INCOME, AND PERSONAL INCOME AND SAVING (In billions of dollars) 1970 1971 Item 1929 1933 1941 1950 1967 1968 1969 1970 1971 p IV I II III IV* Gross national product..................................... 103.1 55.6 124.5 284.8 793.9 864.2 929.1 974.11,046.8 988.41,020.81,040.01,053.41,072.9 Less: Capital consumption allowances......... 7.9 7.0 8.2 18.3 68.9 74.5 81.1 87.6 95.2 89.8 92.0 93.9 96.2 98.7 Indirect business tax and nontax lia- 7.0 7.1 11.3 23.3 70.4 78.6 85.7 92.9 102.1 95.8 99.0 100.2 103.0 106.2 Business transfer payments.................. .6 .7 .5 .8 3.1 3.4 3.7 3.9 4.3 4.1 4.2 4.2 4.3 4.4 Statistical discrepancy.......................... .7 .6 .4 1.5 -.7 -2.7 -4.1 -4.5 -4.7 -1.6 -4.3 -4.9 -4.7 Plus: Subsidies less current surplus of gov­ ernment enterprises........................... -.1 .1 .2 1.4 .7 1.1 1.7 1.0 1.7 1.8 .7 .7 .7 Equals: National income.................................. 86.8 40.3 104.2 241.1 653.6 711.1 763.7 795.9 850.8 802.1 831.7 847.3 855.2 Less: Corporate profits and inventory valu­ ation adjustment............................... 10.5 -1.2 15.2 37.7 78.7 84.3 78.6 70.8 80.7 69.0 79.5 82.5 80.0 Contributions for social insurance---- .2 .3 2.8 6.9 42.4 47.1 54.0 57.6 65.2 58.5 64.0 64.6 65.4 66.6 Excess of wage accruals over disburse- Plus: Government transfer payments........... .9 1.5 2.6 14.3 48.7 56.1 62.2 75.6 90.4 80.7 83.7 92.2 92.5 93.3 Net interest paid by government and 2.5 1.6 2.2 7.2 23.6 26.1 29.0 31.7 31.9 32.4 31.8 31.4 32.2 32.2 Dividends.............................................. 5.8 2.0 4.4 8.8 21.4 23.6 24.4 25.0 25.5 25.0 25.6 25.4 25.7 25.3 Business transfer payments................. .6 .7 .5 .8 3.1 3.4 3.7 3.9 4.3 4.1 4.2 4.2 4.3 4.4 Equals: Personal income................................. 85.9 47.0 96.0 227.6 629.3 688.9 750.3 803.6 857.0 816.7 833.5 853.4 864.6 876.7 Less: Personal tax and nontax payments__ 2.6 1.5 3.3 20.7 83.0 97.9 116.2 115.9 115.8 115.2 111.6 113.8 116.0 121.7 Equals: Disposable personal income................ 83.3 45.5 92.7 206.9 546.3 591.0 634.2 687.8 741.3 701.5 722.0 739.6 748.5 755.0 Less: Personal outlays................................... 79.1 46.5 81.7 193.9 506.0 551.2 596.3 633.7 680.7 643.0 663.3 676.0 687.6 696.0 Personal consumption expenditures. 77.2 45.8 80.6 191.0 492.1 536.2 579.6 615.8 662.1 624.7 644.9 657.4 668.8 677.2 Consumer interest payments............ 1.5 .5 .9 2.4 13.2 14.3 15.8 16.9 17.7 17.4 17.6 17.7 17.8 17.9 Personal transfer payments to for­ eigners............................................ .3 .2 .2 .5 .7 .8 .9 .9 .9 .9 .9 .9 1.0 .9 Equals: Personal saving................................... 4.2 -.9 11.0 13.1 40.4 39.8 37.9 54.1 60.5 58.5 58.6 63.6 61.0 59.0 Disposable personal income in constant (1958) dollars............................................................ 150.6 112.2 190.3 249.6 477.5 499.0 513.5 531.5 550.6 532.5 542.7 550.5 553.2 556.1 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) 1971 1972 Item 1970 1971 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan p Total personal income.......................... 803.6 857.0 829.9 832.4 838.3 843.0 848.6 868.6 857.7 866.1 869.9 871.2 874.9 883.9 891.1 Wage and salary disbursements.......... 541.4 574.2 558.7 560.6 564.8 567.7 572.0 573.2 572.9 579.2 579.8 581.3 584.8 594.8 600.9 Commodity-producing industries. . 200.7 205.7 202.4 201.8 203.3 204.4 206.1 206.4 205.0 205.3 206.7 207.4 208.1 211.4 212.9 Manufacturing only...................... 158.3 160.8 159.0 158.5 159.2 159.6 161.1 161.4 160.2 160.2 161.1 162.0 162.2 165.3 165.8 Distributive industries..................... 129.1 138.8 134.1 135.2 136.5 137.2 138.3 138.1 138.0 140.0 140.7 140.9 141.6 144.7 145.6 Service industries............................. 96.7 105.9 101.9 102.4 103.3 103.9 105.0 105.7 106.3 107.4 107.7 108.1 108.7 109.9 111.2 Government..................................... 114.8 123.8 120.3 121.2 121.6 122.1 122.6 123.0 123.6 126.6 124.7 124.9 126.4 128.8 131.1 Other labor income............................. 30.8 33.7 32.4 32.6 32.8 33.1 33.4 33.7 33.9 34.1 34.3 34.4 34.6 34.8 35.0 Proprietors’ income............................. 66.8 68.4 66.3 66.3 66.6 66.9 67.1 67.4 68.3 69.3 70.1 70.4 70.6 70.7 70.8 Business and professional................ 51.0 52.1 51.6 51.5 51.7 51.8 51.9 52.1 52.2 52.3 52.3 52.4 52.5 52.6 52.5 Farm................................................. 15.8 16.3 14.7 14.8 14.9 15.1 15.2 15.3 16.1 17.0 17.8 18.0 18.1 18.1 18.3 Rental income...................................... 23.3 24.3 23.9 23.5 24.0 24.1 24.2 24.3 ?4.4 24.5 24.5 24.5 24.6 24.6 24.7 Dividends............................................. 25.0 25.5 25.6 25.7 25.5 25.5 25.6 25.2 25.6 25.7 25.7 25.7 25.7 24.3 25.8 Personal interest income..................... 64.7 67.5 66.7 66.6 66.4 66.6 66.7 66.9 67.4 68.1 68.8 68.7 68.6 68.4 68.7 Transfer payments............................... 79.6 94.7 86.8 87.8 89.1 89.8 90.5 109.0 96.2 96.5 97.9 97.4 97.6 98.2 98.7 Less: Personal contributions for social insurance....................................... 28.0 31.2 30.5 30.7 30.9 30.9 31.0 31.1 31.1 31.4 31.4 31.4 31.6 32.0 33.6 Nonagricultural income........................ 781.4 834.0 808.6 810.8 816.6 821.1 826.5 846.5 834.8 842.4 845.3 846.4 850.1 859.2 866.2 Agricultural income.............................. 22.2 23.0 21.3 21.5 21.7 21.9 22.1 22.2 22.9 23.7 24.6 24.7 24.7 24.8 24.9 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 THIRD QUARTER 1971 (Seasonally adjusted annual rates; in billions of dollars) Private domestic nonfinancial sectors Financial sectors Rest U.S. of All State Govt. Sponsored Mone­ Pvt. the sectors Discrep­ Natl, Sector House­ Busi­ and local Total Total credit tary Coml.1 nonbank world ancy savings holds ness govts. agencies auth. banks finance and invest­ Transaction ment category U S U S U S U S U S U S U S U S U S U S U S U S U 183.9 98.8 -.9 281.8 -30.1 6.9 .1 * 3.6 3.1 5.5 264.0 258.5 1 96 4 84 4 180 8 2.7 1.1 1.6 183.4 183.4 87.5 14 4 — 9 101.0 -30.1 4.2 .1 * 2.5 1.5 5.5 80.6 75.1 .3 184.2 .... 87.0 .... -1.7....... 269.4 ....... -28.8 ....... 6.7 -.1 * 1.5 5.3 13.2 260.5 3.5 246.5 4 136 4 122 3 258 7 1.0 .1.0....... 259.7 4.3 259.7 , 5 103 2 103.2 103.2 6 27 6 16 6 44.2 44.2 . , 7 5 6 103 8 109 4 1.0 1.0 110.4 110.4 8 1 9 1.9 1.9 , 9 47.8 -35.3 -1.7 10.7 -28.8 ....... 5.7 -.1 * 1.5 4.3 13.2 .8 -.8 -13.2 10 104 1 15 0 13 2 132 3 11.8 . ... 157.4 9.9 11.0 59.2 77.3 16.4 318.0 3.3 11 56 4 50 3 14 9 121 6 40.6 151.7 9.9 11.0 57.8 73.0 3.3 317.2 16.4 12 i1 j ooiu, jQu l liDv s, agnnHa onmi'IuqaIi ifVgmn . cpxvpufiidnnngopc. * .5 * .5 * .5 * * * .5 * .5 * . . . .. .. . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 3 4 26.1 1.9 24.2 27.3 26.1 ................ 15 8 1 2.0 ] { 11 2 .6 11.8 -.6 .9 10.9 1.2 11.7 11.8 * ................ 16 17 TT ^ r,rtvprnmpnt 14.9....... 13 . . 7 6 . . 4 6 13 . . 3 0 .7 14.9 13 . . 7 6- 1.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 8 7 5 2 6 3 5 9 2.2....... l9 5 3 71 8 2 5 * * 1 .1 3 73 9 . . 1 4 39.4 * 1.1 .9....... 3 73 9 . . 1 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1 0 9 32 6 32 6 1.1 33.7 1.1 33.7 33.7 ................ 21 5 0 5 0 .1 4.9 4.9 5.0 ................ 22 20 3 20 3 3.2 17.0 17.0 20.3 ................ 23 9.3 9.3 .2 9.5 9.1 -.2 9.3 9.3 ................ 24 7 12 2 .7 12.2 15.2 2.9 15.2 2.9 -.3 .5 15.6 ................ 25 27 U.S. Government securities................. _O Oq ‘i . K a0 z ol•oJ_ _ 3 7 1 . Q 4 4 35.7 _ — q . . o 1 9 1 1 4 4 . . 3 4 — — 4 8 . . 3 9 3 1 1 0 4 2 . . 3 0 1.1 3 3 2 2 . . 7 61 2 1 2 0 5 5 . . . 1 2 8 1 8 8 . . 0 0 10 . . 4 0 8 8 . . 0 0 1 9 0 . . 6 4 5 1 1 0 1 3 . . . 2 7 5 1.1 - 5 1 4 1 . . . 1 7 7 8.8 2 2 8 4 . . 8 3 2.8155.4 1 4 1 5 0 4 5 . . . 7 3 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 2 6 7 8 14.3 2 7 8^1 14.3 8.8 1.5 .8 8.8 .7 * 1.1 16.9 ................. 29 1 . . 7 foi z9 1 0 4 y 5 1 1 . . 5 u0 5 3 fi "" 2 .2 9 2 — _ 1 ' _ . ‘i 6 4 1 ... * ............1 2 1 . . ^ . 9 2 7 6 2 2 1 5 8 3 1 4 ! . . . . 1 2 9 6 6 — 1 . . . 2 9 8 * 2 2 1 1 7 1 9 1 1 . . . . . 2 9 7 1 7 6 1 . . . 2 8 4 6 1 1 . . . 2 5 9 .8 5 4 6 7 1 . . . . . 1 3 9 9 8 . . . 3 . 1 1 7 4 4 8 . . . . 2 8 9 3 5 1 .. . . . 9 8 . 4 -4.6 1 . . 5 3 2 2 1 7 8 3 9 4 . . . . . 9 5 1 6 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 3 3 3 1 3 2 0 4 .6 6 3.6 .6 g 3.6 - 3 . . 7 1 * * - - . . 6 6 ... - 3 .1 .6 * * . . 1 1 .2 * 3.7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 6 5 *5 ^7 TP/> ViAfo 3.6 3.6 3.7 * 3.7 .2 3.7 ................ 37 OQ I'o vac — 1.5 0 .6 —1.5-3.0 - 1.6 -.6 * - 1.0 -2.4 -3.1 -.7 ................ 38 g 7.1 6.2 .5 7.1 7.3 — .7 .9 .4 .4 -.2 .7 6.5 8.9 2.4 ................. 39 40 Equity in noncorporate business............. 3.7 K .3 7 1 —2 5 8 10^8 5 —2!5 5 -.4 3.3 1.5 2.0 .5 1.0 .3 * - 6.8 1.0 6.6 -8.9 -1.1 3.0 1 . . 5 8- 1.2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 41 0 _ 3 11 8 8 12.3 -1.3 .2 2.1 - 2.1 -7.7 3.5....... ..3.5 ....... .12.0....... 42 1 Commercial banks and unconsolidated affiliates. A 72 FLOW OF FUNDS □ MARCH 1972 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FLOW OF FUNDS A 73.1 2. SUMMARY OF FUNDS RAISED AND ADVANCED IN U.S. CREDIT MARKETS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Transaction category, or sector 1966 1967 1968 1969 1970 III IV II III IV II III Funds raised, by type and sector Total funds raised 1 by nonfinancial sectors................ 68.5 83.5 96.9 90.4 97.5 86.8 81.4 103.7 94.6 110.6 112.8 173.7 167.5 1 2 U.S. Government........................... 3.5 13.0 13.4 -3.6 12. -.7 1.2 3.0 16.0 12.2 20.0 -.7 45.6 24.6 2 3 Public debt securities................. 2.3 8.9 10.3 -1.3 12.9 - 4.9 4.9 3.5 18.1 11.4 18.5 2.2 45.8 24.7 3 4 Budget agency issues................... 1.2 4.1 3.1 -2.4 -.1 -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 89.1 85.7 78.3 87.7 82.4 90.6 113.5 128.1 142.9 5 6 Corporate equity shares............. .9 2.4 -.7 4.8 6.8 6.0 9.2 5.9 6.0 5.4 9.9 9.2 15.3 17.0 6 7 Debt instruments........................ 64.0 68.1 84.2 89.3 77.9 83.2 76.4 72.4 81.7 77.1 80.7 104.2 112.9 125.9 7 8 Debt capital instruments........ 39.0 46.6 50.9 49.1 58.8 45.2 42.5 45.6 54.6 60.0 74.7 82.0 85.7 84.4 8 9 State and local govt. secs... 5.7 8.7 9.6 8.1 11.8 5.6 4.7 8.9 10.2 8.9 19.3 25.3 16.6 18.0 9 10 Corporate and fgn. bonds.. 11.0 15.9 14.0 13.1 21.1 12.1 11.1 15.0 22.4 22.2 24.8 25.0 24.1 14.1 10 11 Mortgages............................ 22.3 22.0 27.3 27.9 25.8 27.5 26.7 21.7 22.0 28.9 30.7 31.7 45.1 52.3 11 12 Home mortgages.............. 11.4 11.6 15.2 15.7 12.8 15.7 13.9 10.7 11.1 15.2 14.2 14.9 25.2 28.8 12 13 Other residential............... 3.1 3.6 3.5 4.8 5.9 4.8 5.6 4.6 5.4 6.5 6.9 7.1 9.8 10.2 13 14 Commercial...................... 5.7 4.7 6.6 5.5 5.4 5.3 5.8 4.8 4.2 5.2 7.5 7.5 8.8 11.0 14 15 Farm................................. 2.1 2.1 2.1 1.9 1.8 1.8 1.5 1.5 1.4 2.1 2.1 2.2 1.2 2.3 15 16 Other private credit................. 25.0 21.6 33.3 40.2 19.2 38.0 33.9 26.7 27.0 17.0 6.0 22.2 27.2 41.5 16 17 Bank loans n.e.c................... 10.3 9.6 13.4 15.7 2.7 11.7 14.2 7.6 9.0 1.9 -7.6 4.2 13.4 22.6 17 18 Consumer credit.................. 7.2 4.6 11.1 9.3 4.3 8.9 7.5 4.8 6.1 6.2 .2 4.1 9.2 13.9 18 19 Open market paper............. 1.0 2.1 1.6 3.3 3.8 2.7 1.0 5.0 2.2 .5 7.5 2.9 -3.7 2.7 19 20 Other.................................... 6.4 5.2 7.3 11.8 8.4 14.6 11.2 9.4 9.8 8.4 5.9 10.9 8.3 2.3 20 21 By borrowing sector.................. 64.9 70.5 83.5 94.1 84.7 89.1 85.7 78.3 87.7 82.4 90.6 113.5 128.1 142.9 21 22 Foreign......................................... 1.5 4.1 3.0 3.7 2.6 2.3 2.4 2.6 1.7 2.2 4.0 4.3 6.7 7.2 22 23 State and local governments 6.4 8.8 9.9 8.5 12.2 5.8 5.1 9.4 10.4 9.7 19.5 25.7 16.7 18.1 23 24 Households.................................. 23.2 19.7 31.8 32.2 21.6 31.5 28.2 22.8 21.5 24.8 17.2 23.3 40.8 41.2 24 25 Nonfinancial business................. 33.8 37.9 38.8 49.7 48.3 49.4 49.9 43.4 54.2 45.7 50.0 60.2 63.9 76.3 25 26 Corporate................................. 24.9 29.3 30.3 39.1 38.8 37.4 41.0 36.9 45.2 33.6 39.2 47.2 49.9 59.4 26 27 Nonfarm noncorporate............. 5.5 5.0 5.8 7.4 6.3 8.7 6.4 3.5 5.2 8.7 7.7 8.2 9.4 12.7 27 28 Farm......................................... 3.5 3.5 2.7 3.2 3.2 3.3 2.5 3.0 3.8 3.3 3.1 4.8 4.6 4.2 28 Funds advanced directly in credit markets 1 Total funds raised............................. 68.5 83.5 96.9 90.4 97.5 86.8 103.7 94.6 110.6 112.8 173.7 167.5 1 Advanced directly by— 2 U.S. Government.......................... 4.9 4.6 4.9 2.5 3.2 3.7 2.3 3.9 3.6 3.5 1. 4.3 4.3 2.3 3 U.S. Govt, credit agencies, net... .3 .5 -.2 .2 1.2 -.1 1.5 -.7 1.6 .9 3.0 2.4 -6.3 -1.5 4 Funds advanced......................... 5.1 -.1 3.2 9.0 9.9 10.5 14.1 13.7 7.1 8.7 10.1 .3 -5.7 6.5 5 Less funds raised in cr. mkt---- 4.8 -.6 3.5 8.8 8.7 10.6 12.5 14.4 5.5 7.8 7.0 -2.0 .6 7.9 6 Federal Reserve System............... 3.5 4.8 3.7 4.2 5.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 1.4 7.6 6 7 Commercial banks, net................. 16.7 36.6 39.5 12.2 31.3 -.9 12.1 1.0 23.3 63.6 37.3 37.6 59.2 44.0 7 8 Funds advanced........................ 16.8 36.9 39.7 16.5 29.5 4.2 18.9 10.1 27.4 52.1 28.4 35.9 59. 44.9 8 9 Less funds raised....................... .1 .2 .2 4.3 -1 5.0 6.8 9.1 4.1 -11.6 -8.9 -1.7 .6 .9 9 10 Private nonbank finance............... 25.9 34.4 34.2 30.1 38.9 25.6 24.4 25.3 42.4 42.0 45.8 71.3 81.9 59.8 11 Savings institutions, net............ 7.8 16.8 14.6 10.4 14.7 6.8 5.6 4.7 15.3 18.0 20.7 45.5 49.9 35.1 12 Insurance................................... 19.3 18.7 22.0 21.8 24.9 20.6 19.5 23.2 27.1 24.1 25.3 29.9 33.9 27.2 13 Finance n.e.c., net..................... -1.3 -1.1 -2.5 -2.1 -.7 -1.8 -.7 -2.6 * * -.3 -4.0 -1.9 -2.6 14 Foreign........................................... -1.8 2.5 1.3 10.9 5.1 -1.1 9.4 9.5 4.9 19.6 27.5 30.1 32.1 14 15 Private domestic nonfinancial---- 19.1 -.2 12.3 39.8 7.1 55.5 38.4 41.2 17.9 -27.9 -2.5 -46.4 3.1 23.3 16 Business..................................... 3.6 -.2 7.4 13.8 -1.0 18.1 7.0 15.1 12.3 -28.5 -2.9 -1.8 9.7 10.2 1 18 7 S H t o a u te s e a h n o d l d lo s. c . a .. l . .. g .. o .. v .. e .. r .. n .. m ... e .. n .. t . s .. . . . .. . 1 3 1 . .9 4 2.1 * 5. . 8 4 1 6 8 . . 1 3 - 1 3 0 . . 8 6 2 7 6 . . 7 4 2 5 5. . 3 6 - 2 2 4 . . 5 8 -5 8 . . 3 8 -7 8 . . 8 1 . .5 4 -46 1 . . 3 8 -5 3 . . 2 0 1 2 4 . . 9 6 19 Less: Net security credit........... -.2 2.2 1.4 -1.6 -1.4 -3.2 -.4 -3. -2.1 -.2 .6 .1 4.5 4.4 Sources of funds supplied to credit markets Total borrowing 1 by nonfinancial sectors................... 68.5 83.5 96.9 90.4 97.5 88.4 86.8 81.4 103.7 94.6 110.6 112.8 173.7 167.5 1 Supplied directly and indirectly by pvt. domestic nonfin. sectors: 2 Total.............................................. 42.8 51.3 60.8 44.5 68.2 47.6 44.3 55.1 72.0 69.2 76.6 81.5 94.5 93.6 2 3 Deposits..................................... 23.7 51.5 48.5 4.7 61.1 -7.9 5.9 13.9 54.1 97.1 79.2 127.9 91.4 70.2 3 4 Demand dep. and currency.. 4.0 12.4 14.8 7.1 6.1 7.6 8.2 2.0 7.0 7.3 8.3 15.5 23.1 4.6 4 5 Time and svgs. accounts.... 19.7 39.1 33.7 -2.4 54.9 -15.5 -2.3 11.9 47.1 89.9 70.8 112.4 68.3 65.6 5 6 At commercial banks. .. 12.5 22.5 20.8 — 10.5 38.4 -21.3 -6.4 7.4 31.9 68.2 46.3 61.9 26.5 31.5 6 7 At savings institutions... 7.2 16.6 12.9 8.1 16.5 5.8 4.2 4.4 15.2 21.7 24.5 50.4 41.9 34.1 7 8 Credit market instr., net.......... 19.1 -.2 12.3 39.8 7.1 55.5 38.4 41.2 17.9 -27.9 -2.5 -46.4 3.1 23.3 8 9 U.S. Govt, securities.............. 8.5 — 1.7 7.7 15.0 — 6.9 23.2 14.1 6.5 -8.0 -6.8 -19.2 -49.5 .8 4.7 9 10 Pvt. credit market instr.......... 11.4 7.8 13.4 27.0 15.2 29.6 27.5 37.6 23.9 -22.1 21.5 15.4 11.6 22.7 10 11 Corporate equities.................. -1.0 -4.1 -7.4 -3.8 -2.6 -.6 -3.7 -6.7 -.1 .7 -4.3 -12.3 -4.9 .4 11 12 Less security debt.................. -.2 2.2 1.4 -1.6 -1.4 -3.2 -.4 -3.8 -2.1 -.2 .6 .1 4.5 4.4 12 Other sources: 13 Foreign funds................................ .7 4.6 4.3 9.6 2.4 10.4 -.6 10.8 2.7 -4.5 .7 9.7 27.1 37.4 13 14 At banks.................................... 2.5 1.7 1.8 8.3 -8.4 5.3 .5 1.3 -6.8 -9.4 -18.9 -17.8 -3.0 5.3 14 15 Direct......................................... -1.8 2.8 2.5 1.3 10.9 5.1 -1.1 9.4 9.5 4.9 19.6 27.5 30.1 32.1 15 16 Chg. in U.S. Govt, cash balance. -.4 1.2 -1.1 .4 2.6 1.6 3.9 1.0 2.1 1.4 6.1 -18.8 17.4 .6 16 17 U.S. Government loans............... 4.9 4.6 4.9 2.5 3.2 3.7 2.3 3.9 3.6 3.5 1.8 4.3 4.3 2.3 17 18 Pvt. insur. and pension reserves.. 16.7 17.5 18.5 18.7 21.0 18.7 18.9 18.7 22.7 19.8 22.8 25.3 24.2 19.7 18 19 Sources n.e.c.................................. 3.8 4.3 9.5 14.7 .1 6.4 18.1 -8.1 .7 5.3 2.5 10.7 6.1 13.9 19 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73.2 FLOW OF FUNDS a MARCH 1972 3. PRINCIPAL FINANCIAL TRANSACTIONS (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Transaction category, or sector 1966 1967 1968 1969 1970 III IV I II III IV I II III Demand deposits and currency 1 Net incr. in banking system liability. . 2.6 14.8 14.8 8.5 10.1 11.0 13.2 5.1 9.8 8.9 16.9 -1.9 39.9 6.2 2 U.S. Government deposits........... -.4 1.1 -1.2 .6 2.5 1.9 4.2 1.1 2.0 .7 6.0 -19.2 17.3 .6 : 3 Money supply............................... 3.0 13.7 16.0 7.9 7.7 9.1 9.0 4.0 7.8 8.2 10.8 17.3 22.6 5.6 4 Domestic sectors....................... 3.9 13.4 15.7 7.6 7.4 8.5 9.0 2.6 8.2 8.6 10.3 17.5 22.8 5.7 - 5 3.1 9.4 11.1 5.9 4.7 9.5 5.1 5.4 7.4 5.0 1.0 7.3 16.2 10.0 6 Nonfinancial business........... .7 .8 1.8 -.8 -.9 -4.3 3.0 -2.3 -2.7 .7 .9 -1.2 2.9 -1.7 ( 7 State and local governments. -.1 -1.0 .7 3.2 1.2 3.9 2.9 -.3 1.0 1.1 3.1 2.5 1.1 1.1 8 Financial sectors................... -.1 1.0 .9 .5 1.3 .9 .8 .5 1.2 1.4 2.0 1.9 -.3 1.1 : 9 Mail float............................... .3 3.2 1.2 -1.2 1.1 -1.5 -2.8 -.7 1.3 .5 3.3 6.9 2.9 -4.8 ' 10 Rest of the world...................... -1.0 .3 .3 .3 .3 .6 * ..4 -.4 -.5 .5 -.1 -.2 -.2 H Time and savings accounts 1 Net increase—Total........................... 20.2 40.8 33.3 -1.6 53.9 -15.4 3.4 16.8 44.3 87.5 67.1 113.3 72.9 68.0 2 At commercial banks—Total.... 13.3 23.8 20.6 -9.7 36.7 -21.2 -1.1 11.6 28.5 65.6 41.3 61.1 29.5 33.1 3 Corporate business................... -.7 2.9 1.9 -9.8 12.8 -11.0 -4.2 .5 6.1 32.3 12.2 9.0 1.5 1.1 4 State and local governments... 1.3 2.4 3.2 -5.9 9.9 -10.3 -4.6 6.4 10.3 13.4 9.6 12.1 3.5 11.9 5 Foreign....................................... .8 1.2 -.3 1.0 -1.9 .4 5.7 4.3 -3.5 -3.2 -5.1 -1.4 2.6 1.6 6 Households................................ 11.9 17.1 15.7 5.2 15.8 * 2.4 .5 15.5 22.5 24.5 40.8 21.5 18.4 7 7.0 17.0 12.8 8.1 17.2 5.7 4.5 5.2 15.8 21.9 25.8 52.2 43.4 34.9 Liabilities— 8 Savings and loan assns.......... 3.6 10.6 7.5 4.1 11.1 2.9 .7 2.0 9.8 15.6 16.9 36.7 28.6 25.3 9 Mutual savings banks........... 2.6 5.1 4.2 2.6 4.4 1.5 2.2 1.6 4.4 4.7 7.0 12.4 11.6 6.6 10 .8 1.2 1.1 1.4 1.7 1.3 1.5 1.6 1.7 1.5 1.9 3.1 3.1 3.0 1 Assets— 11 Households............................ 7.2 16.6 12.9 8.1 16.5 5.8 4.2 4.4 15.2 21.7 24.5 50.4 41.9 34.1 1 12 Cr. union deps. at S & L’s... -.2 .3 -.1 * .7 -.1 .3 .8 .6 .2 1.3 1.8 1.5 .8 1 U.S. Government securities 1 Total net issues.................................. 8.7 12.5 16.7 5.5 21.6 10.0 13.8 17.5 21.6 20.1 27.0 -2.6 46.3 32.7 1 2 Household savings bonds............ .6 1.0 .4 -.4 .3 -.8 .1 -.9 -.2 .5 1.7 1.9 2.7 2.4 2 3 Direct excluding savings bonds... 1.8 7.9 9.9 -.9 12.6 5.6 4.8 4.4 18.3 10.9 16.8 .3 43.1 22.2 3 4 Budget agency issues..................... * .1 1.5 -.4 1.3 -.8 -.2 2.1 .2 1.0 1.7 .8 .4 * 4 5 Sponsored agency issues............... 5.1 -.6 3.2 9.1 8.7 10.6 12.5 14.4 5.5 7.8 7.0 -2.0 .6 7.9 5 6 Loan participations....................... 1.3 4.0 1.7 -1.9 -1.3 -4.8 -3.3 -2.6 -2.2 -.1 -.2 -3.6 -.5 .1 6 7 Net acquisitions, by sector............... 8.7 12.5 16.7 5.5 21.6 10.0 13.8 17.5 21.6 20.1 27.0 -2.6 46.3 32.7 7 8 U.S. Government (agency sec.)... 1.3 -.1 .1 -1.3 -.1 -.8 -1.0 .1 * .1 -.6 * * 8 9 Sponsored credit agencies............ 1.0 * -.1 -.2 1.7 -.5 1.2 2.0 -.5 1.0 4.4 -1.8 -2.7 -2.8 9 10 Direct marketable..................... .3 .9 -.1 -.5 1.9 -.8 .4 2.8 -.8 1.2 4.3 -3.9 -.2 -2.8 10 11 FHLB special issue................. .6 -.9 .3 -.2 .3 .8 -.8 .2 -.2 . 1 2.0 -2.6 .1 11 12 Federal Reserve System................ 3.5 4.8 3.8 4.2 5.0 -.4 9.2 1.1 5.4 7.9 5.6 15.8 1.7 7.6 12 13 Foreign........................................... -2.4 2.1 -.5 -1.8 9.1 2.7 -3.7 8.0 8.2 4.7 15.5 26.3 28.7 29.0 13 14 -3.6 9.3 3.4 -9.5 9.0 -9.5 -5.2 .5 6.8 11.0 17.6 2.2 14.7 -5.2 14 15 Direct......................................... -3.4 6.3 2.2 -9.3 5.8 -7.6 -6.2 -.7 6.8 8.9 8.0 .1 11.3 -8.2 15 16 Agency issues............................. -.2 3.0 1.3 -.3 3.2 -1.9 1.0 1.3 * 2.1 9.6 2.1 3.4 3.0 16 17 .4 -1.9 2.2 -.8 3.7 -4.7 -.8 -.7 9.8 2.2 3.7 4.4 3.1 -.6 17 18 Direct......................................... -.2 -2.2 .4 -2.4 1.5 -7.3 -.6 -3.2 7.6 -.7 2.5 -7.3 2.5 -3.7 18 19 Agency issues............................. .5 .3 1.8 1.6 2.2 2.6 -.2 2.6 2.2 2.9 1.2 11.8 .6 3.1 19 20 Pvt. domestic nonfinancial.......... 8.5 -1.7 7.7 15.0 -6.9 23.2 14.1 6.5 -8.0 -6.8 -19.2 -49.5 .8 4.7 20 21 Savings bonds—Households... .6 1.0 .4 -.4 .3 -.8 .1 -.9 -.2 .5 1.7 1.9 2.7 2.4 21 22 Direct excl. savings bonds........ 3.3 -3.0 4.1 8.7 -10.5 18.8 5.0 -2.7 -9.2 -10.8 -19.2 -32.7 1.7 .4 22 23 Agency issues............................. 4.7 .4 3.2 6.7 3.4 5.2 9.1 10.1 1.4 3.5 -1.7 -18.7 -3.6 1.8 23 Private securities 1 Total net issues, by sector................ 18.5 28.2 23.9 27.7 42.3 25.1 26.3 31.3 41.0 39.3 57.7 65.0 58.8 53.0 1 2 State and local governments........ 5.7 8.7 9.6 8.1 11.8 5.6 4.7 8.9 10.2 8.9 19.3 25.3 16.6 18.0 2 3 Nonfinancial corporations............ 11.4 17.0 12.1 16.4 27.0 16.1 19.8 20.2 28.9 25.7 33.4 32.8 37.8 30.2 3 4 Finance companies....................... .8 1.0 .8 1.6 2.5 1.4 1.3 1.3 2.3 2.8 3.8 4.5 2.5 3.7 4 5 Commercial banks........................ .1 .2 .2 .1 .1 * -.1 .2 * * * .9 .4 .2 5 6 Rest of the world.......................... .5 1.3 1.3 1.5 .9 2.0 .5 .7 -.4 2.0 1.3 1.4 1.6 .9 6 7 Net purchases.................................... 18.5 28.2 23.9 27.7 42.3 25.1 26.3 31.3 41.0 39.3 57.7 65.0 58.8 53.0 7 8 Households.................................... 3.2 -1.8 -1.2 3.0 8.1 5.2 5.3 6.9 9.8 2.5 13.3 -3.3 4.2 13.0 8 9 Nonfinancial corporations............ 1.0 -.2 -1.1 5.1 1.4 5.5 5.0 .6 2.0 1.6 1.2 6.1 3.2 .7 9 10 State and local governments........ 1.1 1.9 -.4 2.6 .2 .9 1.4 .4 .7 -.8 .6 2.8 2.7 2.6 10 11 Commercial banks........................ 1.9 9.8 8.9 .3 10.8 -1.1 -1.7 5.0 8.9 14.5 14.7 20.1 14.9 7.8 11 12 Mutual savings banks................... .3 2.3 1.6 .6 1.7 * .2 1.2 2.0 1.2 2.5 8.3 6.7 1.5 12 13 Insurance and pension funds....... 12.9 16.6 17.6 16.8 18.7 15.0 15.4 17.0 20.6 13.9 23.2 26.7 33.0 25.5 13 14 Finance n.e.c.................................. -2.2 -.9 -3.6 -2.8 .1 -1.1 -2.2 -.3 -3.5 4.3 -.1 3.3 -5.5 .4 14 15 Security brokers and dealers... .1 .2 -.9 .2 .7 2.3 -2.6 * .2 5.2 -2.7 1.4 -6.1 -.7 15 16 Investment companies, net....... -2.4 -1.1 -2.8 -3.0 -.6 -3.4 .3 -.3 -3.7 -1.0 2.5 1.9 .6 l.l 16 17 Portfolio purchases............... 1.4 1.5 1.9 2.7 1.8 2.7 4.6 1.3 -1.0 2.4 4.5 2.1 .4 .9 17 18 Net issues of own shares.... 3.7 2.6 4.7 5.7 2.4 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 -.1 18 19 .3 .6 2.3 2.1 1.4 .7 2.9 .6 .5 2.1 2.3 1.0 -.5 1.5 19 Bank loans n.e.c. 1 9.0 7.5 15.7 17.8 2.1 11.1 17.6 5.2 10.3 5.0 -11.8 11.1 15.6 20.0 1 2 Households.................................... .4 2.1 3.1 2.4 .8 .9 1.5 2.3 -1.1 1.2 1.0 2.7 5.4 -1.4 2 3 Nonfinancial business................... 10.1 7.7 10.6 13.5 2.3 12.3 12.8 4.6 10.4 .9 -6.7 1.8 5.4 18.8 3 4 Rest of the world.......................... -.2 -.2 -.3 -.2 -.4 -1.5 -.1 .6 -.3 -.2 -1.9 -.2 2.7 5.2 4 5 Financial sectors........................... -1.3 -2.1 2.3 2.1 -.5 -.6 3.4 -2.3 1.2 3.0 -4.1 6.9 2.1 -2.7 5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FLOW OF FUNDS A 73.3 Notes to Table 2 consists of life companies, fire and casualty companies, private pension Funds raised, by type and sector. Credit flows included here are the funds, and State and local govt, retirement funds. Finance n.e.c. is finance amounts shown on lines 25-34 of Table 1 by households, business, govern­ companies, open-end investment companies, security brokers and dealers, ments, and foreigners. All funds raised by financial sectors are excluded. agencies of foreign banks, and banks in U.S. possessions. U.S. Govt, budget issues (line 4) are loan participation certificates is­ Sources of funds supplied to credit markets. In this section lending by sued by CCC, Export-Import Bank, FNMA, and GNMA, together with financial sectors is replaced by sources of funds to financial sectors. security issues by FHA, Export-Import Bank, and 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 mis­ tions. Such issues are in line 5 of the next section of the table and in U.S. cellaneous liabilities of financial sectors less their miscellaneous assets. Govt, securities in Table 3. Corporate share issues are net cash issues by nonfinancial and foreign corporations. Mortgages exclude loans in process. Open market paper is commercial paper issued by nonfinancial corpora­ Notes to Table 3 tions plus bankers’ acceptances. Demand deposits and currency. Lines 5-8 are holder record; line 9 is Funds advanced directly in credit markets. Net purchases, by sector, of the difference between holder and bank record. credit instruments shown in the section above. Financial sectors’ purchases U.S. Government securities. Includes issues by sponsored credit agencies are shown net of their own funds raised in credit-market forms—securities not consolidated into the U.S. Govt, sector and not included in funds and loans on lines 25-34 of Table 1. Lines 3, 7, 10,14, and 15 reflect such raised in Table 2. Sponsored agencies are listed in notes to Table 4, p. adjustments. In addition, security credit is included in funds advanced as A-73.9. Loan participations include FNMA, GNMA, Export-Import an asset and deducted from funds advanced as a liability, netting to zero Bank, and CCC certificates. Where not shown separately, loan participa­ in the totals. Security credit assets are in lines 8, 13, and 14 and subtracted tions are grouped with agency issues. All figures are changes in par values in line 19. Security credit liabilities are in line 19 and subtracted in lines of holdings. 14 and 19. Private securities. Total excludes open-end investment company shares, Lines 3-5 cover federally sponsored agencies. Commercial banks include which are deducted on line 18. bank affiliates not consolidated in bank reports. Savings institutions are Bank loans n.e.c. Includes lending by bank affiliates. savings and loan assns., mutual savings banks, and credit unions. Insurance 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 III IV I II III IV I II III Households, personal trusts, and nonprofit organizations 1 Personal income.............................. 587.2 629.3 688.9 750.3 803.6 759.3 772.2 784.3 803.8 809.8 816.7 833.5 853.4 864.6 2 Less: Personal taxes & nontaxes.. 75.4 83.0 97.9 116.2 115.9 116.1 117.7 116.7 118.0 113.5 115 111.6 113.9 116.0 3 Personal outlays.................. 479.3 506.0 551.2 596.3 633.7 600.9 611.4 621.4 631.5 638.9 643 663.3 676.0 687.6 4 Equals: Personal saving, NIA basis 32.5 40.4 39.8 37.9 54.1 42.3 43.1 46.2 54.2 57.4 58.5 58.6 63.6 61.0 5 Plus: Credits from Govt, insur.1 5.3 5.3 5.9 6.2 9.0 7.2 3.7 6.6 13.1 7.5 8.9 9.0 13.0 7.9 6 Capital gains dividends2 . 1.3 1.7 2.5 2.5 .9 2.2 1.1 1.4 1.2 .8 .2 .4 1.3 .9 7 Net d urables in consumpt. 15.2 12.4 16.7 15.5 8.4 14.1 13.6 10.4 10.7 9.2 3.1 14.2 15.9 18.9 8 Equals: Net saving......................... 54.3 59.8 64.8 62.2 72.4 65.8 61.5 64.6 79.2 74 70.7 82.2 93.7 88.7 9 Plus: Capital consumption....... 64.3 69.9 77.2 84.8 91.2 85.8 87.3 89.0 90.8 92.1 92.8 93.8 94.7 95.5 10 On owner-occ. homes.... 7.4 7.8 8.3 8.8 9.2 8.9 9.0 9.1 9.2 9 9.4 9.6 9.7 9.8 11 On nonprofit pi. and eq.. 1.3 1.4 1.5 1.6 1.7 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.7 1.8 12 On consumer durables... 55.6 60.7 67.4 74.4 80.3 75.3 76.7 78.2 80.0 81.1 81.7 82.4 83.3 83.9 13 Equals: Gross savings................... 118.6 129.7 142.0 147.0 163.5 151.6 148.8 153.6 170.0 167.0 163 175.9 188.3 184.2 14 Gross investment.............................. 119.8 132.0 140.5 141.2 162.9 145.7 143.0 148.9 168.7 166.2 167.3 177.1 187.0 184.5 15 Capital expend, (net of sales). . . 94.2 94.6 109.7 116.7 112.9 116.5 114.9 113.8 115.5 112.8 109.2 123.4 128.9 133.7 16 Residential construction......... 18.9 17.0 21.1 21.6 18.9 21.7 19.3 19.7 19.4 17 19.2 21.7 24.2 25.3 17 Consumer durable goods........ 70.8 73.1 84.0 89.9 88.6 89.4 90.3 88.6 90.7 90.4 84.9 96.6 99 102.8 18 Plant and equip, (nonprofit). . 4.5 4.5 4.5 5.1 5.3 5.3 5.4 5.5 5.4 5.2 5.1 5.1 5.5 5.6 19 Net finan. investment................... 25.6 37.3 30.8 24.5 50.0 29.2 28.1 35.2 53.2 53.4 58.1 53.7 58.1 50.8 19 20 Net acquis, of financial assets. 49.3 61.1 65.6 55.2 70.6 56.6 58.0 53. 71.7 80.0 76. 79.6 103.2 96.2 20 21 Demand dep. and curr........ 3.1 9.4 11.1 5.9 4.7 9.5 5 5.4 7.4 5.0 1.0 7.3 16.2 10.0 21 22 Savings accounts.................. 19.1 33.7 28.6 13.3 32.2 5.8 6.6 5.0 30.7 44.2 49.1 91.2 63.3 52.6 22 23 At commercial banks----- 11.9 17.1 15.7 5.2 15.8 * 2.4 .5 15.5 22.5 24.5 40 21.5 18.4 23 24 At savings institutions.... 7.2 16.6 12.9 8.1 16.5 5.8 4.2 4.4 15.2 21.7 24.5 50.4 41.9 34.1 24 25 Credit market instruments.. 12.9 4.2 13.2 22.2 13.1 27.0 29.0 31.5 8.9 7.4 4 -34.0 -.3 14.2 25 26 U.S. Govt, securities....... 7.3 .9 5.2 13.2 .3 18.6 17.9 14.8 -3.3 4.1 -14.5 -44.9 -9.4 .3 26 27 State and local oblig........ 2.1 -1.3 .9 1.5 -1.5 -.8 -.2 1.2 -.4 -9.5 2.7 -.9 -.2 6.0 27 28 Corporate and fgn. bonds 2.0 3.6 5.4 5.4 12.2 6.5 9.2 12.3 10.2 11.3 14.9 9.9 9.3 6.6 28 29 Mortgages......................... 1.4 1.0 1 2.1 2.2 2.7 2.2 3.1 2.3 1.5 1.7 1.9 1.3 29 30 Investment company shares. 3.7 2.6 4.7 5.7 2.4 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 -.1 30 31 Other corporate shares........ -4.7 -6.7 -12.2 -9.5 -5.0 -6.7 -7.9 -8.3 -2.8 -2.7 -6.4 -12.5 -4.7 .5 31 32 Life insurance reserves........ 4.6 4.8 4.5 4.9 4.9 5.0 4.9 4.9 4.9 4.9 4.8 4.9 4.9 5.0 32 33 Pension fund reserves.......... 13.4 14.1 15.3 15.4 18.6 16.1 15.0 15.3 21.4 16.7 20.9 22.6 23.5 16.9 33 34 Net invest, in noncorp. bus.. -4.1 -3.6 -2.2 -3.9 -2.3 -4.3 -2.7 -2.6 -2.1 -2.5 -2.0 -4.3 -1.6 -4.9 34 35 Security credit...................... * 1.1 .7 -.8 -.5 -1.8 1.1 -1.3 -1. 1.2 * 1.6 -1.2 -1.1 35 36 Miscellaneous....................... 1.2 1.5 1.8 2.1 2.5 -.1 2.6 2.3 2.5 2.5 2.5 2.6 3.2 3.2 36 37 Net increase in liabilities......... 23.6 23.7 34.8 30.7 20.6 27.3 29.9 18.6 18.5 26.7 18.7 25.9 45.1 45.4 37 38 Credit market instruments.., 23.2 19.7 31.8 32.2 21.6 31.5 28.2 22.8 21.5 24.8 17.2 23.3 40.8 41.2 38 39 Home mortgages.............. 12.3 10.5 14.9 16.2 12.5 16.3 14.9 11.0 12.2 13.7 13.0 13.3 23.6 25.4 39 40 Other mortgages.............. 1.3 1.2 1.1 1.3 1.4 1.3 1.3 1.3 1.3 1.4 1.4 1.4 1.4 1.5 40 41 Instalment cons, credit 6.2 3.4 9.0 8.3 3.0 8.0 7.1 4.1 4.8 4.4 -1.3 2 6 11.6 41 42 Other consumer credit. .. 1.0 1.2 2.1 1.0 1.3 1.0 .4 .6 1.3 1.9 1.6 1.3 2.4 2.3 42 43 Bank loans n.e.c............... .4 2.1 3.1 2.4 .8 .9 1.5 2.3 -1.1 1.2 1.0 2.7 5.4 -1.4 43 44 Other loans 3..................... 2.0 1.3 1.7 3.0 2.6 4.1 3.0 3.4 3.0 2.3 1.6 1.7 1.2 1.8 44 45 Security credit...................... -.2 3.3 2.1 -2.5 -1.9 -5.1 .7 -5.2 -3.9 .9 .6 1.7 3.3 3.2 45 46 Trade debt............................ .3 .4 .5 .5 .6 .5 .5 .5 .5 .6 .6 .6 .6 .6 46 47 Miscellaneous....................... .4 .3 .4 .4 .4 .4 .5 .4 .4 .4 .4 .3 .3 .3 47 48 Discrepancy (13-14)....................... -1.2 1.5 5.8 .6 5.9 5.8 4.6 1.4 .8 -3.8 -1.2 1.3 -.3 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 □ MARCH 1972 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 III IV I II III IV I II III Nonfinancial business—Total 1 Income before taxes 1....................... 139.1 136.2 142.4 138.4 129.7 137.5 133.3 130.9 132.1 130.1 125.5 136.1 139.3 139.7 1 2 Gross saving...................................... 77.7 78.4 80.0 78.9 82.0 80.4 77.5 81.6 82.1 82.3 82.6 88.9 93.1 93.7 2 3 Gross investment............................... 69.6 68.3 73.7 73.6 80.2 75.5 73.9 80.2 82.8 79.7 78.7 79.5 83.1 75.0 3 4 Capital expenditures................... 97.0 94.0 99.0 109.2 109.1 112.9 111.5 104.1 107.4 114.2 110.8 114.5 121.1 117.7 4 5 Fixed investment........................... 82.2 85.8 91.9 101.8 106.3 102.5 105.8 103.7 105.3 109.1 107.1 111.4 116.5 118.9 5 6 Business plant & equipment. . . 76.1 77.8 82.9 91.6 94.8 93.5 95.0 93.4 94.8 97.6 93.6 97.7 100.8 101.5 6 7 1-4 family resident, const. 2.... -.7 2.0 .9 -.1 1.0 -1.4 .2 -.1 -.6 1.8 3.0 2.9 2.2 3.0 7 8 Other residential....................... 6.8 6.1 8.1 10.3 10.4 10.5 10.7 10.4 11.2 9.7 10.5 10.8 13.5 14.4 8 9 Change in inventories 3................ 14.8 8.2 7.1 7.4 2.8 10.4 5.7 .4 2.1 5.1 3.7 3.1 4.6 -1.2 9 10 Net financial investment.................... -27.4 -25.7 -25.3 -35.6 -28.9 -37.4 -37.7 -23.9 -24.6 -34.5 -32.2 -35.0 -38.01-42.7 10 11 Financial uses of funds, net........... 16.5 15.8 27.4 29.6 21.2 28.6 22.6 37.0 25.1 8.3 14.9 27.6 23.2 28.4 11 12 Financial sources of funds, net---- 43.9 41.5 52.6 65.2 50.1 66.0 60.3 60.9 49.7 42.8 47.1 62.6 61.2 71.1 12 13 Corporate share issues.............. 1.2 2.3 -.8 4.3 6.8 5.6 9.1 6.3 6.2 5.0 9.6 9.0 15.7 17.0 13 14 Credit market instruments........ 32.7 35.6 39.6 45.4 41.5 43.8 40.8 37.1 48.0 40.7 40.4 51.3 48.2 59.3 14 15 Corporate bonds................... 10.2 14.7 12.9 12.1 20.3 10.5 10.7 13.9 22.7 20.7 23.8 23.8 22.1 13.1 15 16 Home mortgages................... -1.0 1.1 .3 -.6 .3 -.7 -1.0 -.3 -1.1 1.4 1.2 1.6 1.6 3.4 16 17 Other mortgages.................... 9.7 9.2 11.0 11.0 11.7 10.5 11.6 9.7 9.6 12.3 15.1 15.5 18.4 22.0 17 18 Bank loans n.e.c..................... 10.1 7.7 10.6 13.5 2.3 12.3 12.8 4.6 10.4 .9 -6.7 1.8 5.4 18.8 18 19 Other loans 4......................... 3.6 2.8 4.8 9.3 7.0 11.2 6.7 9.2 6.4 5.3 7.0 8.7 .8 1.9 19 20 Trade debt................................. 7.4 6.4 10.2 19.7 4.3 23.5 12.8 14.5 * 2.0 .7 -4.3 -6.8 -4.3 20 21 Other liabilities.......................... 2.7 -2.7 3.7 -4.1 -2.5 -7.0 -2.3 2.9 -4.5 -4.9 -3.6 6.6 4.0 -.8 21 22 Discrepancy (2-3)............................. 8.0 10.1 6.3 5.4 -1.8 4.8 3.6 1.4 -.7 2.6 3.9 9.5 10.0 18.7 22 Farm and nonfarm noncorporate business5 1 Net income 1..................................... 69.8 71.2 73.5 76.4 76.5 76.5 76.7 77.5 77.2 75.6 75.7 76.1 77.2 79.4 1 2 Gross saving 6................................... 16.5 16.9 18.3 19.5 20.5 19.7 19.6 22.0 20.2 20.2 20.2 21.6 21.9 22.4 2 3 Gross investment............................... 16.5 16.9 18.3 19.5 20.5 19.7 19.6 22.0 20.2 20.2 20.2 21.6 21.9 22.4 3 4 Capital expenditures................... 19.9 22.1 22.8 24.3 24.9 24.6 24.2 24.0 24.9 25.8 24.8 30.9 30.7 32.8 4 5 Fixed investment........................... 19.5 21.1 22.2 23.4 24.7 22.5 24.5 23.9 24.0 24.9 25.9 28.2 29.7 31.5 5 6 Change in inventories 3................ .4 .9 .6 .9 .2 2.1 -.2 .1 .9 .9 -1.1 2.7 1.0 1.3 6 7 Net financial investment.................... -3.4 -5.1 -4.5 -4.8 -4.3 -5.0 -4.6 -2.0 -4.7 -5.6 -4.7 -9.3 -8.7 -10.5 7 8 Financial uses of funds, net........... 1.1 1.2 1.8 1.8 1.7 2.3 1.5 1.1 1.5 2.4 1.9 1.1 2.0 2.1 8 9 Financial sources of funds, net.... 4.5 6.3 6.3 6.5 6.1 7.3 6.1 3.1 6.2 8.1 6.5 10.4 10.7 12.6 9 10 Credit market instruments........ 9.0 8.5 8.5 10.5 9.5 12.0 8.9 6.5 8.9 12.1 10.8 13.1 14.0 16.8 10 11 Mortgages.............................. 4.5 5.8 5.5 5.7 6.7 5.6 4.8 5.1 5.1 8.0 8.4 8.3 8.4 12.7 11 12 Bank loans n.e.c.................... 2.2 1.3 1.8 2.5 1.1 3.5 2.2 -1.0 2.1 2.4 .9 1.1 3.6 3.2 12 13 Other loans 4-7...................... 2.2 1.4 1.3 2.4 1.8 2.8 1.9 2.4 1.7 1.7 1.4 3.6 2.0 .9 13 14 Trade debt, net.......................... -.4 1.4 * -.1 -1.2 -.4 -.2 -.8 -.7 -1.5 -2.3 1.7 -1.7 .7 14 15 Proprietors’ net investment 8... -4.1 -3.6 -2.2 -3.9 -2.3 -4.3 -2.7 -2.6 -2.1 -2.5 -2.0 -4.3 -1.6 -4.9 15 Nonfinancial corporate business 1 Profits before tax.............................. 71.1 66.1 72.2 67.5 57.7 64.2 63.2 59.2 59.2 60.0 52.4 63.5 66.6 66.2 1 2 Less: Profits tax accruals................ 30.0 28.3 34.0 33.3 27.0 31.7 31.2 27.6 27.7 28.1 24.7 30.8 32.0 30.2 2 3 Net dividends paid................ 18.1 18.8 20.8 20.9 21.0 20.9 21.0 21.0 21.2 21.2 20.8 21.2 20.4 21.3 3 4 Equals: Undistributed profits.......... 22.9 19.0 17.5 13.3 9.6 11.6 11.1 10.6 10.3 10.7 6.9 11.4 14.1 14.7 4 5 Plus: Foreign branch profits, net........ 1.8 2.1 2.5 2.5 2.6 2.5 2.5 2.8 2.5 2.7 2.7 2.8 3.4 2.8 5 6 Investment valuation adj......... -1.8 -1.1 -3.3 -5.5 -4.5 -3.2 -6.7 -5.8 -4.2 -5.5 -2.6 -3.5 -4.4 -5.8 6 7 Capital consumption.............. 38.2 41.5 45.1 49.2 53.8 49.8 51.0 52.1 53.3 54.2 55.4 56.7 58.1 59.7 7 8 Equals: Gross internal funds........... 61.2 61.5 61.7 59.5 61.5 60.7 57.9 59.7 61.8 62.1 62.4 67.4 71.2 71.4 8 9 Gross investment (10+15)............... 53.1 51.3 55.4 54.1 59.7 55.9 54.2 58.2 62.6 59.5 58.5 57.9 61.2 52.7 9 10 Capital expenditures.................. 77.1 72.0 76.1 84.9 84.2 88.3 87.3 80.1 82.5 88.3 86.0 83.6 90.5 84.9 10 11 Fixed investment........................... 62.7 64.7 69.7 78.4 81.6 80.0 81.4 79.8 81.3 84.1 81.2 83.2 86.8 87.4 11 12 Plant and equipment................. 61.6 62.5 67.4 75.6 78.3 77.8 78.1 77.0 78.5 80.6 76.9 78.8 81.4 81.3 12 13 Residential construction........... 1.1 2.3 2.3 2.8 3.3 2.2 3.3 2.8 2.8 3.5 4.3 4.3 5.4 6.1 13 14 Change in inventories 3................ 14.4 7.3 6.4 6.5 2.6 8.3 5.9 .3 1.2 4.2 4.8 .4 3.7 -2.5 14 15 Net financial investment.................... -24.0 -20.6 -20.7 -30.8 24.5 -32.4 -33.1 -21.9 -19.9 -28.8 -27.5 -25.7 -29.3 -32.2 15 16 Financial uses of funds, net........... 15.5 14.6 25.6 27.8 19.5 26.2 21.2 35.9 23.6 5.9 13.1 26.5 21.2 26.3 16 17 Liquid assets.............................. 1.9 2.1 8.6 1.3 8.9 .1 4.6 11.8 14.0 1.4 8.5 4.3 11.3 6.4 17 18 Demand dep. and curr.......... .7 .7 1.6 -.9 -1.0 -4.4 2.9 -2.4 -2.9 .6 .8 -1.3 2.8 -1.8 18 19 Time deposits......................... -.7 2.9 1.9 -9.8 12.8 -11.0 -4.2 .5 6.1 32.3 12.2 9.0 1.5 1.1 19 20 U.S. Govt, securities............. -1.2 -2.8 1.7 -1.7 -3.2 -2.2 -8.0 -5.4 1.3 -3.9 -4.5 -3.5 9.9 4.2 20 21 Open market paper............... 2.0 1.5 4.4 8.6 -1.1 12.2 8.9 18.6 7.4 -29.1 -1.2 -6.1 -6.1 2.3 21 22 State and local oblig.............. 1.0 -.2 -1.1 5.1 1.4 5.5 5.0 .6 2.0 1.6 1.2 6.1 3.2 .7 22 23 Consumer credit........................ 1.2 .9 1.7 1.3 1.4 1.5 .8 1.5 1.4 1.7 1.1 1.9 2.1 2.3 23 24 Trade credit............................... 11.3 7.7 13.9 17.3 6.2 18.7 14.6 18.6 4.8 2.0 -.7 11.6 -.2 3.3 24 25 Other financial assets 9............. 1.0 3.8 1.4 8.0 3.0 5.9 1.2 3.9 3.4 .7 4.2 8.8 8.0 14.4 25 26 Financial sources of funds, net.... 39.4 35.2 46.3 58.6 44.0 58.7 54.2 57.8 43.5 34.7 40.5 52.2 50.5 58.6 26 27 Net new share issues................. 1.2 2.3 -.8 4.3 6.8 5.6 9.1 6.3 6.2 5.0 9.6 9.0 15.7 17.0 27 28 Credit market instruments........ 23.7 27.0 31.1 34.8 32.0 31.8 31.9 30.6 39.1 28.6 29.6 38.2 34.2 42.4 28 29 Corporate bonds.................... 10.2 14.7 12.9 12.1 20.3 10.5 10.7 13.9 22.7 20.7 23.8 23.8 22.1 13.1 29 30 Mortgages.............................. 4.2 4.5 5.8 4.8 5.3 4.2 5.7 4.3 3.4 5.8 7.8 8.7 11.6 12.6 30 31 Bank loans n.e.c..................... 7.9 6.4 8.8 11.0 1.2 8.8 10.6 5.6 8.3 -1.5 -7.7 .7 1.8 15.7 31 32 Other loans *0....................... 1.4 1.4 3.6 7.0 5.2 8.4 4.8 6.8 4.7 3.6 5.6 5.0 -1.2 1.0 32 33 Profit tax liability...................... .2 -4.7 2.1 -1.9 -3.3 -4.7 -2.6 -2.5 -4.6 -3.0 -3.3 2.8 8.4 .4 33 34 Trade debt................................. 7.8 4.9 10.1 19.7 5.5 23.9 13.0 15.3 .7 3.5 3.0 -6.0 -5.0 -5.0 34 35 Other liabilities.......................... 6.5 5.6 3.8 1.7 3.1 2.0 2.9 8.0 2.2 .6 1.7 8.1 -2.8 3.8 35 36 Discrepancy (8-9)............................. 8.0 10.1 6.3 5.4 1.8 4.8 3.6 1.4 -.7 2.6 3.9 9.5 10.0 18.7 36 Note.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FLOW OF FUNDS A 73.5 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 III IV I II III IV I II III State and local governments-—General funds 1 1 Net surplus, NIA basis....................... 1.3 - 1.6 -.3 -.1 .5 .5 1.8 1.1 1.9 .2 -1.3 -.8 2.8 4.6 1 2 Less: Retirement cr. to households . 4.0 3.9 4.6 4.6 6.6 4.8 2.8 5.2 9.5 5.7 5.9 6.8 8.9 5.8 2 3 Equals: Gross saving.......................... -2.7 -5.5 -5.0 -4.5 - 6.0 -4.2 - 1.0 -4.0 -7.6 -5.5 -7.1 -7.7 - 6.1 - 1.2 3 4 Net financial investment...................... - 2.1 -5.6 -5.5 -6.3 -6.3 -5.6 -2.4 -7.2 -5.7 -4.4 -7.8 -9.6 -9.5 -2.5 4 5 Net acq. of financial assets............. 4.8 3.8 5.0 2.7 6.5 .7 3.2 2.7 5.1 5.8 12.2 16.6 7.8 16.2 5 6 Currency and demand deposits. -.1 - 1.0 .7 3.2 1.2 3.9 2.9 -.3 1.0 1.1 3.1 2.5 1.1 1.1 6 7 Time deposits............................... 1.3 2.4 3.2 -5.9 9.9 -10.3 -4.6 6.4 10.3 13.4 9.6 12.1 3.5 11.9 7 8 Credit market instruments......... 3.4 2.1 .4 6.1 -3.8 7.7 5.6 -2.5 -5.3 -7.8 .4 1.8 3.0 2.9 8 9 U.S. Government securities.. 2.4 .2 .8 3.5 -4.0 6.8 4.2 -2.9 - 6.0 -7.0 -.2 - 1.1 .3 .2 9 0 2 1 Sta D U te . i S r a e . n c G d t. o .. l v . o .. t c . , . a .. a l . . g . s . e . e . n . c . c . u . y . r . . i . s t . i . e . e . c . s . . . - . . . - . . - . . . - . . . - . 2. .1 2 * -. . 4 6 - 1 . . 3 0 * 1 1. . . 3 7 8 -3 -. . . 9 1 4 3 3 . . . 4 4 2 2 1 . . . 8 4 6 -3. . . 2 3 2 - - 2 3 . . . 5 5 7 - - 1 5 . . . 5 4 3 -. . 2 5 * -1. . . 9 1 9 -. . . 2 6 2 -1 1 . . . 3 3 5 1 1 1 1 0 2 1 1 3 4 C H o o r m p e o r m at o e r t b g o a n g d e s s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 * 1.9 * -. . 4 1 2.3 * -.2 * .8 * .8* .2 * * * - 1.1 * * 2.7 * 2.5 * 2.3 * 1 1 3 4 5 Tax receivables............................ .2 .3 .7 -.6 -.9 -.7 -.7 -.9 — .9 -.9 -.9 .2 .2 .2 15 6 Net increase in liabilities............... 6.9 9.5 10.5 9.0 12.8 6.3 5.6 9.9 10.9 10.2 20.0 26.2 17.3 18.7 16 7 Credit mkt. borrowing............... 6.4 8.8 9.9 8.5 12.2 5.8 5.1 9.4 10.4 9.7 19.5 25.7 16.7 18.1 17 8 State and local obligations ... 5.7 8.7 9.6 8.1 11.8 5.6 4.7 8.9 10.2 8.9 19.3 25.3 16.6 18.0 18 9 Short-term............................ .7 1.8 .1 3.1 3.8 2.9 2.7 3.0 3.2 1.9 7.2 7.4 3.2 4.0 19 0 Other...................................... 5.1 6.8 9.4 5.0 8.0 2.7 2.0 5.9 7.0 7.0 12.0 17.9 13.4 14.0 20 1 U.S. Government loans......... .6 .2 .3 .4 .4 .3 .5 .5 .2 .8 .2 .4 .2 .1 21 2 Trade debt.................................... .5 .6 .6 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 .5 22 3 Discrepancy (7-8)................................ -.7 .1 .5 1.8 .2 1.4 1.5 3.2 - 1.8 - 1.1 .7 1.9 3.4 1.3 23 U.S. Government 2 1 Total receipts, NIA basis................... 142.5 151.2 175.0 196.9 191.5 195.8 196.8 191.6 193.8 191.3 189.3 196.5 197.8 197.8 1 2 61.7 67.5 79.7 94.9 92.2 94.0 95.2 93.8 94.5 89.7 91.0 86.6 87.6 88.8 2 3 Corporate profits tax accruals.... 32.1 30.7 36.7 36.3 30.6 34.9 34.5 30.6 30.9 31.9 29.0 34.1 34.8 33.2 3 4 Indirect taxes.................................... 15.7 16.3 18.0 19.0 19.3 19.4 19.1 19.0 19.1 19.7 19.4 20.7 19.9 19.7 4 5 Insurance receipts............................ 33.0 36.7 40.7 46.8 49.3 47.4 48.0 48.2 49.2 50.0 49.8 55.1 55.5 56.1 5 6 Total expenditures, NIA basis......... 142.8 163.6 181.5 189.5 205.1 190.7 193.4 196.1 207.9 206.7 209.8 212.7 221.4 224.6 6 7 Goods and services......................... 77.8 90.7 98.8 99.2 97.2 100.3 99.5 100.2 96.8 96.1 95.9 96.4 96.0 97.6 7 8 Grants and donations..................... 29.0 30.7 34.1 37.2 45.2 36.9 39.5 39.7 46.4 46.8 48.1 47.4 50.2 50.0 8 9 Net interest........................................ 9.5 10.2 11.7 13.1 14.6 13.3 14.0 14.3 14.3 15.0 14.8 14.0 13.3 13.9 9 10 Insurance benefits............................ 26.4 32.0 36.9 40.0 48.1 40.2 40.4 41.9 50.5 48.9 51.0 55.0 62.0 63.0 10 11 Net surplus, NIA basis....................... -.2 -12.4 -6.5 7.3 -13.6 5.1 3.4 -4.5 -14.1 -15.5 -20.5 -16.2 -23.6 -26.7 11 12 Less: Insur. credits to households3 . 1.4 1.4 1.3 1.6 2.5 2.4 .9 1.5 3.6 1.8 3.0 2.1 4.1 2.2 12 13 Equals: Gross saving.......................... - 1.6 -13.8 -7.8 5.7 -16.1 2.7 2.5 - 6.0 -17.7 -17.3 -23.4 -18.3 -27.7 -28.9 13 1 1 5 4 Ne N t e fi t n a a c n q c u ia is l , in o v f e fi s n t a m n e . n a t. s . s .. e .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . . - 5 . . 1 4 -13 2 . . 1 9 -8 7 . . 4 4 3 5 . . 0 4 -15. . 2 6 4 2. .0 6 5 2 . . 6 0 -4.8 * -1 — 8 . . 9 6 -14. . 0 3 -23 2 . . 1 9 - - 1 2 7 0 . . 1 1 -2 2 6 2 . . 6 6 -2 -1 7 . . 7 7 1 1 5 4 16 Demand deposits & currency. . -.1 1.0 -1.7 1.1 2.5 2.6 4.0 .6 2.5 .7 6.4 -19.7 16.6 1.2 16 1 18 7 Cr A ed g i e t n m cy a r s k e e c t u i r n it s ie tr s u 4 m ... e .. n ... t . s .. . . . . . . . . . . . . . . . . 4 1 . . 9 3 - 4 . . 1 6 4. . 9 1 -1 2 . . 3 5 - 3 .1 .2 - 3 . . 8 7 - 2 1 . . 3 0 3. .1 9 3.6 * 3. . 5 1 - 1 . . 6 8 4.3 * 4.3 * 2.3 1 18 7 19 Mortgages................................. .8 .9 1.1 .7 .3 .7 .8 .3 .5 .3 .3 -.2 .4 * 19 20 Other loans............................... 2.8 3.8 3.7 3.1 3.0 3.8 2.4 3.5 3.1 3.1 2.1 4.5 3.9 2.3 20 Excess of tax accruals 21 over receipts............................ -.7 -4.4 1.7 -2.9 - 2.8 -4.3 -2.3 - 1.1 -4.2 -1.7 -4.1 2.3 7.2 -.9 21 22 Other financial assets 5............... 1.3 1.8 2.5 2.2 -2.3 2.1 1.6 -3.3 -2.5 - 2.1 -1.3 -4.0 -5.5 -4.3 22 23 Net increase in liabilities................. 5.5 16.0 15.9 -2.5 15.9 1.4 3.5 4.9 18.2 14.3 26.0 3.0 49.2 26.0 23 24 U.S. Government securities----- 3.5 13.0 13.4 -3.6 12.8 -.7 1.2 3.0 16.0 12.2 20.0 -.7 45.6 24.6 24 25 Savings bonds—households.. .6 1.0 .4 -.4 .3 -.8 .1 -.9 -.2 .5 1.7 1.9 2.7 2.4 25 26 Direct excl. savings bonds. .. 1.8 7.9 9.9 -.9 12.6 5.6 4.8 4.4 18.3 10.9 16.8 .3 43.1 22.2 26 27 Budget agency sec. 6............... 1.2 4.1 3.1 -2.4 -.1 -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 2.4 .9 1.5 3.6 1.8 3.0 2.1 4.1 2.2 28 29 Other liabilities7.......................... .6 1.6 1.1 -.4 .6 -.3 1.4 .4 -1.4 .3 3.1 1.5 -.5 -.8 29 30 Discrepancy (13-14)............................ -1.5 -.7 .6 .3 -.9 * .5 - 1.2 1.2 -3.3 -.3 1.7 - 1.1 - 1.2 30 31 Memo: Corp. tax receipts, net......... 32.8 35.1 35.0 39.2 33.4 39.3 36.8 31.7 35.1 33.6 33.1 31.8 27.6 34.1 31 Federally sponsored credit agencies8 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 11.1 13.7 15.8 6.8 9.9 10.7 2.1 —5.6 3 4 Cr U ed .S it . m G a o r v k e e r t n i m ns e t n r t u s m e e c n u t r s it .. i . e .. s .. _ .. _ .. _ .. 5 1 . . 1 0 -.1 * - 3 .1 .2 - 9 . . 2 0 9 1 . . 9 7 1 - 0 .5 .5 14 1 . . 1 2 1 2 3 . . 0 7 - 7 . . 5 1 8 1 . . 7 0 1 4 0 . .1 4 -1. . 8 3 - - 2 5 . . 7 7 -2 6 . . 8 5 5 Residential mortgages................ 1.9 1.1 1.6 3.9 5.4 4.7 6.6 5.8 5.4 6.3 4.0 1.4 6.0 8.1 6 Farm mortgages.......................... .7 .7 .5 .6 .5 .6 .3 .3 .5 .5 .5 .5 .8 .8 7 Other loans................................... 1.6 -1.8 1.2 4.8 2.3 5.7 5.9 5.6 1.7 .9 1.1 .2 -9.8 .3 8 To coops (BC).......................... .2 .2 .1 .2 .3 -.1 .3 .3 .1 .4 .4 .3 .1 -.7 9 To farmers (FICB)............. .4 .5 .2 .6 .7 .4 .8 1.0 .7 .2 .9 1.1 1.0 .4 10 To S & L’s (FHLB)................ .9 -2.5 .9 4.0 1.3 5.3 4.8 4.4 .8 .3 -.2 -1.2 -10.8 .7 11 Net increase in liabilities.................... 5.2 -.2 3.2 9.1 10.8 11.4 13.3 15.8 6.7 9.9 10.8 2.1 5.7 8.6 11 1 13 2 Cr A ed g i e t n m cy a r s k e e c t u i r n it s ie tr s u .. m .... e .. n .. t . s .. . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 . . 1 8 - - . . 6 6 3 3 . .5 2 9 8 . . 1 8 8 8 . .7 7 1 10 0 . . 6 6 1 1 2 2 . . 5 5 1 1 4 4 . .4 4 5 5 . . 5 5 7 7 . . 8 8 7 7 . . 0 0 - - 2 2. . 0 0 . . 6 6 7 7 . . 9 9 1 1 3 2 14 U.S. Government loans............. -.2 -.1 .2 -.3 . . . .. 14 15 Miscellaneous liabilities................. .4 .5 -.3 .4 ’ '2A ' .8 ” i.’ 3 ’ 1.2 ’ ’2.1 ' 3^7 ' '4.’i '-6!3 .6 15 Note.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73.6 FLOW OF FUNDS □ MARCH 1972 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 III IV I II III IV I II III Monetary authorities 1 1 Current surplus.................................... * * * * * * * * * * * * * * 1 2 Net acquisition of financial assets. . . 4.2 4.8 3.7 4.2 5.3 5.5 7.4 6.1 1.1 9.9 4.0 11.5 .7 10.1 2 4 6 5 3 T F F G . r . o R R e l a . d . s f l . a o l c n o a u d n a r t s r f . e . o t . n . o r .. c e .. i d y . g . o . n a . m . n .. e d . e . x . s . c S t .. i h . D c . a . . n R b .. g . a . e c . n . t .. f k 2 . s . . . s . . . . . . . . . . . . . . . . . . . . . . . . . -.3 . . . 3 1 7 -. . 5 5 * * - 1 . . . 9 2 2 * -.1 .1 * * -1. . . . 4 7 8 2 3 2. . . . 4 4 2 0 - - 1 2 1 . . . . 5 3 4 0 - 2 1 . . . . 2 4 9 8 - - 3 2 . . . . 1 3 0 4 - 1 1 1 . . . . 4 6 2 0 - -3 2 1 . . . . 3 3 7 2 - - - 2 2 . . . 9 . 1 1 5 - -1 2 2 . . . . 3 1 0 6 - -1 5 1 . . . . 7 1 0 3 4 3 6 5 7 Credit market instruments............. 3.5 4.8 3.7 4.2 5.0 -.5 9.3 1.2 5.5 7.7 5.5 16.1 1.4 7.6 7 8 U.S. Government securities---- 3.5 4.8 3.8 4.2 5.0 -.4 9.2 1.1 5.4 7.9 5.6 15.8 1.7 7.6 8 9 Net increase in liabilities..................... 4.2 4.7 3.7 4.2 5.3 5.5 7.4 6.1 1.1 9.9 4.0 11.5 .7 10.1 9 10 Member bank reserves................... 1.3 1.3 .7 .3 2.1 3.0 .3 4.3 -1.3 5.7 -.5 9.7 -4.6 1.2 10 11 Vault cash of coml. banks 3......... .6 .5 1.3 .1 -.3 .1 -.5 -1.5 -.2 -.4 1.0 .6 .8 -.8 11 Demand deposits and currency 1 13 2 U Fo .S re . i G gn o v 4 e .. r .. n .. m .... e .. n .. t .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 .9 * - 1 . . 1 0 -.1 .5 -.4 * -.1 .1 - 2 . . 1 3 - 1. .3 2 -3 -. . 2 2 - 2 . . 2 3 -.1 . 6 -1. . 3 2 — -. . 1 6 4.8 * 1 1 3 2 1 15 4 Ot C h u er rr .. e .. n .. c .. y ... . o .. u .. t .. s .. i . d .. e .. .. b .. a .. n ... k .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . - 2 . . 1 0 2.1* 2. . 4 2 2. . 8 6 3. . 5 4 - 2 . . 2 5 4 1 . . 2 2 3. . 7 4 5. . 6 5 - 3 . . 8 2 1 1 . . 5 6 - 3 1 . . 3 1 - 6 1 . . 1 0 3 1 . . 5 3 1 1 4 5 Commercial banks and affiliates 5 1 Current surplus.................................... 2.5 2.3 3.0 3.5 3.5 3.6 3.6 3.5 3.4 3.6 3.6 3.7 3.5 3.7 1 2 Net acquisition of financial assets. .. 20.1 39.9 44.0 19.7 38.0 14.9 9.3 31.9 30.5 55.2 34.3 53.2 67.0 45.7 2 3 Total loans and investments......... 16.8 36.9 39.7 16.5 29.5 4.2 18.9 10.1 27.4 52.1 28.4 35.9 59.8 44.9 3 4 Credit market instruments........ 16.2 35.4 38.4 17.7 28.1 7.3 18.5 10.8 33.5 43.0 25.4 40.0 60.6 40.8 4 5 U.S. Government securities6. -3.6 9.3 3.4 -9.5 9.0 -9.5 -5.2 .5 6.8 11.0 17.6 2.2 14.7 -5.2 5 7 6 D Ag ir e e n c c t y . .. i . s .. s .. u .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -3.4 * 6. . 3 3 2 1 . .1 2 -9 1 . . 3 1 4 5 . . 1 8 -7 1 . . 6 2 - 4 6 . . 1 2 - 2 . . 7 9 6 1 . . 8 4 2 8 . . 3 9 9 8 . . 7 0 3. . 5 1 1 3 1 . . 6 3 - 8 3 . .3 2 6 7 8 Loan partic. certificates... -.2 2.7 .2 -1.3 -.9 -3.0 -3.1 - 1.6 -1.5 -.3 -.1 -1.5 -.2 -.3 8 9 Other securities and mtg.. .. 6.6 14.3 15.5 5.5 13.2 3.0 1.5 7.4 9.5 17.7 18.0 26.8 25.3 19.3 9 10 State and local obligations. 1.9 9.0 8.6 .4 10.1 -.9 -1.5 5.0 8.0 14.5 12.9 18.6 13.4 7.8 10 11 Corporate bonds................. . 1 .8 .3 -. 1 .7 -.2 — .2 .9 1 8 1.5 1.5 11 1 13 2 O Ho th m e e r m m o o r r t t g g a a g g e e s s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2. . 3 4 2 2. .4 2 3 3 . . 5 2 2 3 . . 3 0 1 . . 9 4 2 2. . 1 0 2 1 . . 1 1 1 1. .4 0 .6* 2 1. . 1 0 2. . 4 9 3 3 . . 7 0 7 3 . . 0 4 6 5 . .6 0 1 1 2 3 14 Other credit exc. security. . . 13.3 11.7 19.5 21.7 6.0 13.8 22.2 2.8 17.2 14.3 - 10.2 11.0 20.6 26.6 14 15 Consumer credit................. 2.6 1.8 4.9 3.3 1.9 2.7 3.0 1.0 2.3 3.8 .4 1.7 3.9 6.7 15 1 16 7 O Ba p n e k n l m oa a n rk s e n t .e p . a c p ... e .. r . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 . . 1 6 2 7. . 5 4 - 1 1 5 . . 1 7 17 . . 5 8 2 2. . 1 0 11.1* 17 1. .6 6 -3 5 . . 3 1 1 4 0. . 1 8 5 5. . 3 2 - 11 1. . 1 8 - 11 1 . . 1 8 1 1 5 . .6 2 2 - 0 . . 1 0 1 1 6 7 18 Security credit.............................. .5 1.5 1.3 - 1.1 1.3 -3.1 .4 -.7 - 6.1 9.1 3.0 -4.1 -.8 4.1 18 19 Vault cash & mem. bk. reserves.. 1.9 1.8 2.0 .4 1.8 3.1 -.2 2.8 -1.5 5.4 .4 10.3 -3.8 .4 19 20 Loans to affiliate banks................. 6 . 1 .4 .3 5 - 1 _ 3 2 1 8 -.2 * 20 21 Miscellaneous assets......................... 1.4 1.2 2.3 2.2 6.6 7.3 -9.8 18.5 4.7 - 2.0 5^2 5.2 11.2 .4 21 22 18.9 38.1 42.2 18.0 35.9 13.3 7.7 30.2 28.1 53.0 32.5 51.4 63.2 45.8 22 2 2 23 5 4 De O U m . t S a h n . e d r G 7 d o .. e . v . p . e .. o r .. s n .. i m . t . s .. , e . . n . n .. t e . . . . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -.5 . . 3 8 1 1 1 1 . . .9 2 6 1 1 - 3 3 . . . 2 3 5 5 5 . . 2 2 * 4 2 7 . . . 1 2 8 6 8 1 . . . 7 4 8 4 6 1 . . . 8 8 9 2 2 . . 3 3 * 2 7 5 . . . 4 2 7 -1 5 3 . . . 5 1 5 1 9 5 4 . . . 4 4 9 -1 - 1 4 7 3 . . . 1 9 8 3 1 1 4 7 6 . . . 5 8 6 - - 4 2 2 . . . 2 2 0 2 2 25 4 3 26 Time deposits.................................... 13.3 23.8 20.6 -9.7 36.7 - 21.2 - 1.1 11.6 28.5 65.6 41.3 61.1 29.5 33.1 26 27 Large negotiable CD’s............... -.8 4.7 3.1 - 12.6 15.2 -14.2 -3.3 5.3 7.6 34.3 13.4 5.8 4.0 18.2 27 28 Other............................................... 14.0 19.1 17.4 2.9 21.6 -7.0 2.2 6.3 20.9 31.3 27.9 55.3 25.5 14.9 28 2 3 9 0 B C a o n m k m s e e r c c u i r a i l t y p a is p s e u r e i s s . s .. u ... e .. s . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .1 .2 .2 4. .1 2 — 1 . . 1 9 5.0 * - 6 ! l 9 8 '. 9 2 4.1 — 11 ’ . 5 * — 8. ’ 9 * — 2 .9 6 . . 4 2 .‘2 7 2 3 9 0 3 3 31 3 2 B F L . o o R a rr . n o s f w l f o i r n a o g t m . . a . .. t a . . f F . f . i . . . l R . i . a . . . t . e . B . s .. . a . . . . n . . . . k . . . . . s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 * * .9 * . .1 6 * . .. 8 2 1 3. . . 4 4 4 - 2 1 . . . 3 4 0 - 2 . . . 2 4 5 -3 — . . . 1 4 l — 1 1 . . 6 2 3 - 2 1 . . 7 2 2 - - 2 2 1 . . . 1 1 8 - - 2 2 . . . 2 1 0 -1 5 . . 7 0 * 3 3 3 1 3 2 34 Profit tax liabilities......................... * -.1 -.1 .1 .3 * -.3 1.0 .2 .3 -.1 .2 -.4 .1 34 35 Liabilities to foreign branches... 2.7 .2 1.8 7.0 - 6.8 4.3 -5.3 -4.4 -2.9 -5.7 -14.3 -16.2 -5.4 3.9 35 36 Other miscellaneous liabilities. .. 2.3 2.2 5.5 10.4 -.6 12.5 1.2 7.9 - 6.6 -1.7 - 2.0 14.5 4.7 6.7 36 37 Discrepancy.......................................... .8 .2 .6 .7 .4 .9 1.0 .8 * .3 .6 1.0 -1.3 2.7 37 Memo: Amounts included above for un­ consolidated bank affiliates: 38 Net acquisition of financial assets.... 4.4 — 1.0 6.6 .9 12.0 4.8 — 11.8 —9.0 1.4 .6 — .4 38 39 Bank loans n.e.c............................... 3.8 - 1.1 6.2 .6 11.5 4.9 -11.5 -9.2 -.4 .8 — .4 39 40 Loans to affiliate banks................. .6 . l .4 .3 .5 -. 1 — .3 .2 1.8 -.2 * 40 41 Net increase in liabilities..................... 4.4 - 1.0 6.6 .9 12.0 4.8 - 11.8 -9.0 1.4 .6 — .4 41 42 Commercial paper issues............... 4.2 — 1.9 5.0 6 9 8 9 4 1-11.5 — 8.9 -2 6 .2 *7 42 43 Miscellaneous liabilities................. .2 .9 1.5 -5.9 3.1 .7 -.2 * 4.0 .5 - l’.l 43 Note.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ FLOW OF FUNDS A 73.7 4. SECTOR STATEMENTS OF SAVING AND INVESTMENT—Continued (Seasonally adjusted annual rates; in billions of dollars) 1969 1970 1971 Category 1966 1967 1968 1969 1970 III IV I II III IV I II III Private nonbank financial institutions—Total 1 1 Current surplus.................................... 1.6 1.3 .2 -.2 1.5 .1 .9 .1 .9 2.0 3.0 3.1 2.5 3.0 1 2 Physical investment (life insurance).. .5 .6 .7 .8 .9 .8 .8 .9 .9 .9 .9 1.0 1.0 1.0 2 3 Net acquisition of financial assets----- 34.9 42.4 50.0 48.4 51.4 42.0 49.6 33.5 45.9 63.7 62.6 86.0 73.6 68.5 3 5 4 T D i e m m e a d n e d p d o e s p it o s s ( it M s a S n B d ) . c .. u .. r .. r . e .. n ... c .. y .. . . . . . . . -.1 * 1.0* .9 * -.1 .5 1.3 .1 1.5 .7 1.2 1.3 2.0 .2 1.8 -. . 2 3 .3 * 4 5 6 Svgs. and loan shares (Cr. union) -.2 .3 -.1 * .7 -.1 .3 .8 .6 .2 1.3 1.8 1.5 .8 6 7 Corporate shares.............................. 5.9 8.3 9.4 12.7 11.2 12.0 15.1 14.7 9.2 6.4 14.3 21.5 20.0 15.5 7 8 Credit market instruments............. 27.3 27.1 36.2 36.0 36.6 34.0 26.9 19.8 36.9 51.8 37.7 50.4 54.4 47.8 8 1 9 0 S U t . a S t . e G an o d v e l r o n c m al e o n b t l s i e g c a u ti r o it n i s e s . . . . . . . . . . 4 8 -1 1 . . 9 2 2 1 . . 2 2 - 1 . . 8 0 3 1 . . 7 4 -4 1 . . 7 5 -. . 8 7 - 1 . . 7 9 - 9 . . 2 8 2 2 . .2 0 3 1 . . 7 9 4 1 . . 4 3 3.1 * - 3 . . 6 2 1 9 0 11 Corporate and foreign bonds... 8.0 11.1 9.6 6.6 10.4 6.4 1.8 2.9 12.9 14.3 11.4 15.7 14.2 8.5 11 12 Home mortgages......................... 5.1 8.0 8.6 8.6 7.0 7.1 5.5 1.6 4.5 10.2 11.7 13.2 17.3 17.6 12 13 Other mortgages.......................... 6.8 6.7 7.0 6.7 8.7 7.2 7.4 7.0 8.2 8.4 11.3 9.7 13.8 14.6 13 14 Consumer credit.......................... 2.9 1.4 3.8 4.2 .6 3.6 3.4 2.3 2.2 -.4 - 1.8 .8 2.5 4.0 14 15 Other loans................................... 3.3 .6 3.8 9.7 4.8 12.9 8.9 4.8 -.4 15.2 -.3 5.3 3.6 .5 15 16 Security credit.................................. -.1 2.8 2.0 - 2.6 -1.4 -5.2 1.8 -4.6 -3.4 .4 2.1 2.1 2.6 3.2 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 .6 3.5 1.7 .9 3.3 4.7 7.9 -5.5 .5 18 19 Net increase in liabilities..................... 34.7 43.3 49.7 50.5 51.6 44.9 50.9 33.2 46.2 64.2 63.0 82.5 70.7 66.6 19 20 Time and savings accounts............ 7.0 17.0 12.8 8.1 17.2 5.7 4.5 5.2 15.8 21.9 25.8 52.2 43.4 34.9 20 21 Insurance and pension reserves. .. 16.7 17.5 18.5 18.7 21.0 18.7 18.9 18.7 22.7 19.8 22.8 25.3 24.2 19.7 21 22 Credit market instruments............. 2.9 -.8 6.7 12.4 3.8 14.2 12.6 4.5 5.0 3.8 1.9 4.0 - 1.6 4.4 22 2 23 4 M Fi o n r a t n g c a e g e c o l m oa p n a s n i y n b p o ro n c d e s s .. s .. . . . . . . . . . . . . . . . . . -.9 .8 1 1 . . 0 0 . .8 2 1.6 * 2. . 5 6 - 1 .3 .4 - 1 . . 6 3 - 1 1. . 3 2 2.3 * 2 1 . . 8 6 2 3 . .8 2 4 1 . . 5 6 2 3. . 8 5 3 1 . . 7 7 2 23 4 25 Bank loans n.e.c........................... -1.3 - 2.1 2.3 2.1 -.5 -.6 3.4 -2.3 1.2 3.0 -4.1 6.9 2.1 -2.7 25 26 Other loans................................... 4.3 -.7 3.3 8.6 1.2 13.8 8.5 6.8 1.4 -3.6 .1 -9.0 - 10.0 1.6 26 27 Finance company paper........ 3.4 1*8 2.5 4.6 -.2 8.5 3.7 2.4 .6 -3.9 .3 -7.8 .8 .9 27 28 FHLB loans.............................. .9 -2.5 .9 4.0 1.3 5.3 4.8 4.4 .8 .3 -.2 - 1.2 - 10.8 .7 28 29 Investment company shares........... 3.7 2.6 4.7 5.7 2.4 6.1 4.2 1.6 2.7 3.4 2.1 -.2 -.1 29 3 3 1 0 T Se a c x u e r s i t p y a c y r a e b d l i e t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 * - 2 . . 1 1 2. . 0 2 - 2. .1 0 1. . 2 2 -5. . 1 3 2. .1 6 -1.5 * -7 -. . 1 4 9. . 4 4 4. . 5 7 — 1! . 1 6 - - 3 . . 5 0 - 2 . . 3 5 3 31 0 32 Miscellaneous liabilities................. 3.8 5.0 4.8 7.5 5.8 4.9 8.0 4.7 7.4 5.6 5.3 2.2 8.5 5.5 32 33 Discrepancy.......................................... .8 1.5 -.9 1.1 .9 2.2 1.4 - 1.0 .3 1.5 2.6 -1.4 -1.4 . 1 33 Savings and loan associations 1 Net acquisition of financial assets----- 4.6 9.7 9.7 9.5 14.3 8.2 6.8 5.5 12.7 17.9 21.2 37.8 26.6 29.4 1 2 Demand deposits & currency 2... -.5 -.3 -.4 -.2 .1 * .2 * .1 .2 .5 .7 .6 2 3 Credit market instruments............. 4.2 9.1 10.1 9.9 11.5 9.0 6.1 4.0 10.4 14.2 17.2 31.8 30.9 29.3 3 4 U.S. Government securities___ .4 1.6 .7 .3 1.2 .1 -1.3 -.3 3.2 1.5 .2 14.4 5.1 1.8 4 5 Home mortgages......................... 2.9 6.0 7.2 7.8 7.2 7.0 5.5 3.0 4.9 9.3 11.7 12.6 18.3 18.8 5 7 6 C O o th n e s r u m m e o r r t c g r a e g d e i s t. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 * 1.5 * 2. . 1 1 1.8 * 3.0 2.0 * - 1 . . 1 8 - 1 .1 .3 2. .1 2 3 . . 1 4 5.3 * - 4 . . 8 1 7. . 5 1 8. .1 7 6 7 8 Misc. financial transactions.......... .9 .9 * -.2 2.7 -.9 .8 1.3 2.3 3.6 3.8 5.6 -5.1 -.6 8 9 Net increase in liabilities..................... 4.0 9.3 8.9 8.6 13.6 7.4 5.4 4.9 11.8 17.1 20.5 37.0 25.9 28.5 9 10 Savings shares.................................. 3.6 10.6 7.5 4.1 11.1 2.9 .7 2.0 9.8 15.6 16.9 36.7 28.6 25.3 10 11 Credit market instruments............. .1 -1.7 1.1 4.1 1.9 5.1 4.6 2.5 .8 1.7 2.4 -.3 -5.4 2.9 11 12 Mortgage loans in process......... -.9 1.0 .2 * .6 -.3 -.6 - 1.2 >0 1.6 2.2 1.6 3.8 1.7 12 13 Borrowing from FHLB............. .9 -2.5 .9 4.0 1.3 5.3 4.8 4.4 .8 .3 -.2 - 1.2 - 10.8 .7 13 Mutual savings banks 2 1 Ne C t o ac rp q o ui r s a i t t e io s n h o a f r e fi s n . a .. n .. c .. i . a .. l . .. a .. s .. s . e .. t .. s .. 3 .. . . . .. . . 2.8 * 5. . 4 2 4. . 6 3 3. . 1 2 4. . 7 3 1. . 8 2 2. . 1 2 2. .3 6 5. . 2 3 5. .3 0 6. .3 0 13 . . 3 4 12 . . 3 5 7. . 3 3 2 1 3 Credit market instruments............ 2.6 5.0 4.1 2.9 3.9 1.2 2.6 2.0 4.5 3.9 5.1 11.9 11.7 6.2 3 4 5 S U t . a S t . e G an o d v e lo rn c m al e g n o t v s t, e s c e u c r u it r i i e t s ie .. s . . . . - -. .5 1 -.3 * -.2 * -.5 * .2* - 1.0 * -.8 * -.6 * .6 * .5 * .3 -. . 5 2 1. . 1 3 . . 1 6 4 5 6 Corporate bonds.......................... .3 2.1 1.3 .3 1.4 -.3 -.1 .9 1.7 .9 2.2 7.8 6.2 1.1 6 7 Home mortgages......................... 1.6 1.8 1.4 1.4 .9 1.1 1.4 .2 1.1 1.1 1.3 .9 1.0 1.3 7 8 Other mortgages.......................... 1.1 1.4 1.4 1.3 .9 1.0 1.7 .5 .8 1.0 1.3 2.1 2.8 2.9 8 1 9 0 S M a i v s i c n e g l s la d n e eo p u o s s i l t i s a .. b .. i .. l . i . t . i .. e .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 * 5. . 1 1 4. . 2 1 2. . 6 2 4. . 4 1 1.5 * 2. .3 2 1 . . 1 6 4. . 4 5 4. .1 7 - 7 . . 4 0 1 - 2 . . 4 1 11 . . 4 6 6. .3 6 1 9 0 Life insurance companies 1 Net acquisition of financial assets3... 8.3 8.7 9.8 9.2 9.3 9.1 9.2 9.6 9.4 9.1 9.2 13.5 11.0 11.6 1 2 Corporate shares.............................. .3 1.0 1.4 1.7 2.0 1.1 2.1 2.2 2.3 .5 2.9 4.5 3.4 3.2 2 4 3 5 Cr U S ed t . a S i t t . e m G a a o n r v d k e e r l t o n i c m n a s e l t n r o u t b m s l e i e g c n a u t t r s i i . o t .. i n . e . s . s . _ . . . _ . .. . _ . . . - - 7 . . . 3 4 8 - - 7 . . . 3 1 4 - 7 . . 1 . 7 2 - 6 . . 4 6 * 6. . 8 1 * - 7 . . . 8 5 2 - 4 . . . 1 6 1 - 6 . . 5 2 * - 7 . . . 1 5 2 8. . . 1 6 2 - 5 . . . 3 3 1 - 7 1 . . 5 0 * 8. . . 1 3 4 - 9 . . . 3 3 0 4 3 5 6 Corporate bonds.......................... 2.4 3.8 3.9 1.5 1.5 1.5 -.6 .7 2.4 1.3 1.8 3.4 4.7 5.5 6 7 Home mortgages......................... .6 -.5 -.7 - 1.1 -1.4 -.8 - 2.1 -1.3 - 1.2 - 1.2 - 1.8 -1.5 - 2.1 - 2.2 7 8 Other mortgages.......................... 4.0 3.4 3.2 3.1 3.7 3.2 3.8 4.0 3.7 3.3 3.9 2.4 2.5 3.8 8 9 Other loans................................... 1.5 1.0 1.2 3.4 2.9 4.2 3.6 3.4 1.9 5.0 1.5 4.1 2.3 1.8 9 10 Net increase in liabilities..................... 7.9 8.8 9.1 9.2 9.3 9.3 9.3 9.3 9.3 9.3 9.3 12.1 9.5 10.9 10 11 Life insurance reserves................... 4.5 4.7 4.6 4.8 4.8 4.9 4.8 4.8 4.8 4.8 4.8 4.8 4.8 5.0 11 12 Pension fund reserves..................... 2.1 2.6 2.9 2.9 3.1 2.9 3.0 3.0 3.0 3.1 3.1 5.9 3.4 4.2 12 13 Other liabilities................................ 1.2 1.6 1.5 1.4 1.4 1.3 1.5 1.4 1.6 1.3 1.2 1.3 1.6 1.7 13 Note.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 73.8 FLOW OF FUNDS □ MARCH 1972 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 III IV I II III IV I II III Private pension funds 2 1 Ne D t e a m cq a u n is d i t d io e n p o o s f i f t i s n a a n n c d i a c l u a r s r s e e n t c s y .. 6.1 * 6. . 3 4 6. . 4 3 6.3* 6. . 6 2 - 6 . . 3 1 8. . 3 4 5. . 7 3 - 5 . . 3 3 6. . 2 8 - 9 . . 1 0 7. . 8 7 -1 7 . . 3 2 4. . 8 4 3 Corporate shares......................... 3.7 4.6 4.7 5.4 4.6 4.5 6.5 5.2 3.8 2.7 6.8 9.6 11.6 6.9 4 Credit market instruments........ 1.9 .5 1.1 .9 2.0 2.7 .7 .9 1.8 3.2 2.1 -2.5 -2.4 -2.5 5 U.S Government securities., -.5 -.6 .4 .1 .4 .9 -.5 -.4 .6 2.1 -.6 .6 -1.1 .6 6 7 C M o o r r p tg o a ra g t e e s . b .. o ... n .. d .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 . . 5 9 . .1 9 .7* . .1 6 1.6 * 1 . . 3 6 . . 8 3 1. . 1 2 1.2 - 1 .1 .3 2.8 - - 2 . . 6 6 -.5 - - 2 . . 7 4 8 Miscellaneous............................... .6 .8 .3 .1 -.2 -.7 -.7 -.4 -.1 State and local govt, employee retirement funds 2 1 Ne D t e a m cq a u n is d i t d io e n p o o s f i f t i s n a a n n c d i a c l u a r s r s e e n ts c - y -- . - . - . 4. .1 0 3. . 9 1 4.6 * 4.6 * 6. . 6 2 4.8 * 2.8 * - 5 . . 4 2 9. . 5 6 - 5 . . 2 7 5. . 9 7 6.8 8. . 9 5 - 5 . . 1 8 2 1 3 Corporate shares.............................. .5 .7 1.3 1.7 2.1 1.5 2.1 1.9 2.2 1.5 2.9 2.8 3.1 3.8 3 4 Credit market instruments........... 3.4 2.8 3.2 2.9 4.1 3.2 .6 3.5 6.5 4.2 2.1 3.9 5.1 1.9 4 6 5 U.S. Government securities.... .2 1 - 1 1 .0 i .4 3 -.2 4 - — . 3 .4 — 4 * — -. . 8 8 — -. . 1 2 — -. . 4 5 * — -. . 8 7 - — 1 . . 6 2 - — 1 . . 4 0 — .1 8 6 5 7 U.S. Govt, agency sec............ .1 .1 .6 .2 * * 'a .1 .1 .1 * * -.6 -.7 .8 7 8 State and local obligations........ -.1 -.1 * -.2 -.3 * -.5 -.1 -.6 -.2 -.5 -.1 -.2 -.3 8 9 Other cr. mkt. instruments.... 3.8 4.5 4.2 5.1 6.9 4.7 3.9 5.6 9.8 6.0 6.2 7.9 9.4 5.9 9 10 Corporate bonds...................... 2.5 3.4 2.5 3.0 3.9 2.3 1.9 2.6 6.3 3.9 2.7 4.8 5.4 2.8 10 11 Mortgages................................. .8 .5 .4 .3 .9 .9 -.1 1.1 1.3 .6 .6 .3 .9 -.7 11 12 Other................................................... .1 .4 .1 * .2 * .1 .2 .2 .2 .2 .1 .2 .1 12 Other insurance companies 1 Current surplus.................................... .5 .4 .1 * .5 * -.1 -.1 .2 .8 1.1 1.1 1.0 1.1 1 2 3 Ne D t e ac m q a u n is d i ti d o e n p o o s f i f t i s n a a n n c d i a c l u a r s r s e e n ts c - y -- . - . - . 2.1 * 2.0 * 3. . 1 1 3.0 * 3.7 * -. . 1 5 3.4 * 3.7 * 3.6 * 3.7 * 3.7 * 4.6 * 5.4 * 5.3 * 2 3 4 Corporate shares.............................. .4 .3 .8 1.0 1.0 .3 1.3 1.4 1.1 .1 1.3 1.5 3.0 3.0 4 5 6 Cr U ed .S it . m G a o r v k e e r t n i m ns e t n r t u s m e e c n u t r s i . t . i . e ... s .. . . . .. . . . . - 1 .4 .5 - 1 . . 7 4 T 1 • . 9 2 - 1 . . 4 6 2.3 * - - 2 . . 2 2 - 1 .3 .7 2.0* 2. .1 0 3. . 2 5 - 2 . . 4 0 2.7 * - 2 ,. . 3 0 - 1 . . 7 9 6 5i 7 State and local obligations.... 1.3 1.4 1.0 1.2 1.1 1.3 1.2 1.1 1.1 1.0 1.0 1.2 1.1 1.2 7 9 8 C C o o m rp m or e a r t c e i a b l o m n o d r s t . g .. a .. g .. e ... s . . . . . . .. .. . . . . .. .. . . . . . . . . .. .. .6 * .7 * 1.2 * .8 * 1.2 * .7 * .8 * .8 * .8 * 1.6 * 1.4 * 1.5 * 1.1 * 1.4 * 9 8 10 Trade credit...................................... .2 .3 .3 .4 .4 .4 .4 .4 .4 .4 A A A .4 10 11 Net increase in liabilities..................... 1.8 2.1 2.4 3.4 3.7 1.4 3.9 3.6 3.6 3.8 3.9 3.8 4.3 4.2 11 12 Discrepancy.......................................... .1 .5 -.5 .4 .6 .9 .4 -.2 .2 .9 1.3 .3 * .1 12 Finance companies 1 Net acquisition of financial assets----- 2.6 .9 5.5 8.0 1.9 8.7 7.5 2.1 4.0 2.0 -.6 4.2 4.1 1.4 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 -.5 .2 -.7 -.4 1.2 A 1.7 .8 .3 3 4 Consumer credit.............................. 1.8 .6 2.4 2.6 -.6 2.2 2.1 1.3 .9 - 2.1 - 2.6 -.8 .4 1.7 4 5 Other loans (to business)............... 1.2 -.4 2.2 4.8 2.1 6.7 4.9 1.2 3.2 2.6 1.3 3.0 2.6 -.9 5 6 Net increase in liabilities..................... 2.8 .9 5.5 8.2 1.9 9.1 8.0 2.0 4.2 2.1 -.6 4.3 3.8 1.6 6 7 Corporate bonds.............................. .8 1.0 .8 1.6 2.5 1.4 1.3 1.3 2.3 2.8 3.8 4.5 2.5 3.7 7 8 Bank loans n.e.c............................... -1.4 - 2.0 2.3 2.1 -.5 -.7 2.9 -1.7 1.3 3.2 -4.7 7.6 .4 -3.1 8 9 Open market paper......................... 3.4 1.8 2.5 4.6 -.2 8.5 3.7 2.4 .6 -3.9 .3 -7.8 .8 .9 9 Open-end investment companies 1 Current surplus.................................... - 1.2 -1.5 - 2.2 -2.4 -.8 - 2.1 -.8 -1.4 - 1.1 -.7 -.1 -.3 - 1.2 -.8 1 2 3 Ne D t e a m cq a u n is d i t d io e n p o o s f i f t i s n a a n n c d i a c l u a r s r s e e n ts c - y -- . - . - . 2.5 * 1. . 1 2 2. . 5 1 - 3 . . 1 3 1.6 * - 4 . . 1 1 3.4 * .2 * - 1 . . 5 6 2. .3 6 1 . .9 2 -. . 1 4 -1.4 * - - . . 1 9 2 3 4 Corporate shares.............................. 1.0 1.5 1.5 2.5 1.1 3.3 4.3 4.2 - 1.0 -.8 2.1 2.1 .9 -.5 4 5 Credit market instruments............. 1.5 -.5 .9 .9 .5 .9 -.9 -3.9 3.2 3.1 -.4 -2.5 -2.3 -.4 5 6 8 7 O C U p o .S e r . p n o G m r o a a v t r e e k r b e n t o m p n e d a n s p t . . e . s . e . r . c . . . . u . . . . . r . . . i . . t . . . i . . . e . . . . s . . . . _ . . . . _ . . . . _ . . . . .5 4 6 -.5 * * . . .3 4 2 - 1 .5 . . 2 2 -. . . 4 7 2 - 1 . . . 6 3 2 -1. . . 3 3 2 -2 - -. . . 3 8 9 -5 8 . . 2 3 * -7 6 3 . . . 0 9 2 -2 2 . . . 9 4 1 -2. . 7 2 * - - - 1 . .4 . 8 0 - - 1 1 . . . 7 1 4 8 7 6 9 Net stock issues 4................................ 3.7 2.6 4.7 5.7 2.4 6.1 4.2 1.6 2.7 3.4 2.1 .2 -.2 -.1 9 Note.—For notes see p. A-73.9. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ 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 1969 III IV I II III IV I II III Rest of the world 1 Net U.S. exports................................ 5.3 5.2 2.5 2.0 3.6 2.8 2.7 3.5 4.2 4.0 2.7 4.7 .1 * 1 2 U.S. exports.................................... 43.4 46.2 50.6 55.6 62.9 58.3 59.2 61.5 63.2 63.7 63.2 66.2 66.5 68.2 2 3 U.S. imports.................................. 38.1 41.0 48.1 53.6 59.3 55.5 56.6 58.0 59.0 59.7 60.5 61.5 66.4 68.2 3 4 Transfer receipts from U.S.............. 2.8 3.0 2.9 2.9 3.1 2.8 3.0 3.0 3.0 3.2 3.3 3.1 3.4 3.7 4 5 Current account balance1............... -2.4 - 2.2 .4 .9 -.4 -. 1 .3 -.5 - 1.2 -.8 .7 - 1.6 3.2 3.7 5 6 Net financial investment................... - 2.0 - 1.2 .9 3.7 .6 4.1 .4 .6 .3 1.5 .1 2.7 12.0 25.7 6 7 Net acquis, of financial assets---- 3.3 7.6 8.5 10.3 5.2 12.4 — .2 8.8 4.8 5.2 2.0 12.5 23.3 34.4 7 8 9 G U o .S ld . d a e n m d a S n D d R de ’s p 2 . . & ... .. c .. u .. r . r .. e .. n .. c .. y .. - 1 . . 6 0 1. .3 2 1. .3 2 - 1 . . 3 0 . .3 8 .6 * - 2.8 * - 1 .4 .4 - - . . 1 4 - 1 .5 .4 2. . 2 5 -. . 1 9 - 2 . . 2 6 - 1 . . 2 8 9 8 10 Time deposits............................ .8 1.2 -.3 1.0 -1.9 .4 5.7 4.3 -3.5 -3.2 -5.1 -1.4 2.6 1.6 10 11 U.S. corporate shares.............. -.3 .7 2.0 1.6 .7 .7 2.0 -.3 -.3 1.5 1.9 .3 * .9 11 12 U.S. Government securities... -2.4 2.1 -.5 - 1.8 9.1 2.7 -3.7 8.0 8.2 4.7 15.5 26.3 28.7 29.0 12 13 Other credit market instr. 3. . , .9 .1 .8 1.5 1.1 1.7 .7 1.8 1.7 - 1.1 2.3 .4 1.8 2.6 13 14 Other financial assets 4........... 4.7 2.0 4.9 8.7 -5.0 6.3 - 2.1 - 6.0 -.7 2.3 -15.4 -13.8 - 12.2 -1.3 14 15 Net increase in liabilities............. 5.3 8.7 7.6 6.7 4.6 8.3 -.7 8.1 4.5 3.7 1.9 9.9 11.3 8.8 15 1 17 6 O Fo ff r i e c i i g al n U co .S r . p o fg r n a . t e e x sh c a h r a e n s ge5 ., -.3 * 1. . 1 1 2. . 1 2 . .3 5 -2.5 * 2. . 8 4 -1. . 9 1 -2 -. . 4 3 -4 -. . 2 2 -1. . 7 4 -1. . 9 3 -2. . 5 3 - -. . 7 4 -3.7 * 1 17 6 18 Corporate bonds..................... .7 1.2 1.1 1.0 .8 1.7 .4 1.1 -.3 1.6 .9 1.1 2.0 .9 18 19 Loans 6...................................... 1.1 2.8 1.7 2.2 1.7 .3 1.9 1.9 2.1 .3 2.7 2.9 5.1 6.3 19 20 Other liabilities 7..................... 3.8 3.6 2.6 2.7 4.5 3.2 - 1.1 7.9 7.0 3.2 -.2 8.1 5.4 5.2 20 21 Discrepancy 8.................................... -.4 - 1.1 -.5 - 2.8 - 1.1 -4.1 -.1 - 1.1 -1.5 - 2.2 .5 -4.3 - 8.8 - 22.0 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. cur 9 8 r e I D n n i c t r l e u a c s d t s e e i s n t s v e . e a s r t n m in e g n s ts r a e b ta r i o n a e d d , f in o re b i u g s n i n c e u s r s re ; n s c e y e h n o o l t d e i n 6 g s a , b a o n v d e . unallocated No 1 n b In a n a k d d fi i n ti a o n n c e to types shown, includes credit unions, agencies of foreign U.S 10 . C G o o m vt m , e lo rc a i n a s l . paper, commercial loans from finance companies, and ban 2 k E s x , c s l e u c d u e r s i ty d e b p ro o k si e t r s s a a t n d F d H e L al B e , r s, w a h n i d ch b a a n re k s i i n n c l p u o d s e s d es s i i n o n M s. iscellaneous, line 8. Go 1 v e R rn e m tir e e n m ts ent funds are on p. A-73.8. 4 3 I I n n c c l l u u d d e e s s c re a t s a h i n a e n d d c o a t p h i e ta r l a g ss a e in ts s , d n i o v t i d s e h n o d w s n . separately. 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 □ MARCH 1972 1. U.S. BALANCE OF PAYMENTS (In millions of dollars) 1970 1971 Line Credits -f; debits — 1969 1970 II III IV I II IIIp Summary—Seasonally adjusted 1 Merchandise trade balance 1........................................................ 660 2,110 751 704 142 269 -1,040 -537 2 Exports...................................................................................... 36,490 41,980 10,582 10,696 10,461 11,030 10,720 11,481 3 Imports...................................................................................... -35,830 -39,870 -9,831 -9,992 -10,319 -10,761 -11,760 12,018 4 Military transactions, net.............................................................. -3,341 -3,371 -808 -884 -770 -667 -669 -715 5 Travel and transportation, net..................................................... -1,780 -1,979 -500 -553 -478 -427 -610 -601 6 Investment income, net 2............................................................... 5,975 6,242 1,469 1,571 1,626 1,783 2,169 1,670 7 U.S. direct investments abroad............................................ 7,340 7,906 1,905 1,973 1,988 2,033 2,409 2,053 8 Other U.S. investments abroad............................................ 3,199 3,503 886 882 851 864 832 845 9 Foreign investments in the United States......................... -4,564 -5,167 -1,322 -1,284 -1,213 -1,114 -1,072 -1,228 10 Other services, net........................................................................... 497 588 133 157 150 212 176 177 11 Balance on goods and services 3............................................................ 2,011 3,592 1,045 995 670 1,170 26 -6 12 Remittances, pensions, and other transfers............................. -1,266 -1,410 -362 -359 -351 -342 -355 -388 13 Balance on goods, services, and remittances...................................... 745 2,182 683 636 319 828 -329 -394 14 U.S. Government grants (excluding military)........................... -1,644 -1,739 -391 — 444 -485 -428 -483 -527 15 Balance on current account..................................................................... -899 444 292 192 -166 400 -812 -921 16 U.S. Government capital flows excluding nonscheduled repayments, net 4......................................................................... -2,106 -1,837 -480 -396 -450 -602 -679 -428 17 Nonscheduled repayments of U.S. Government assets........... -87 244 114 2 40 4 102 72 18 U.S. Government nonliquid liabilities to other than foreign official reserve agencies.............................................................. 263 -436 -224 82 -263 -82 -53 -176 19 Long-term private capital flows, net........................................... -50 -1,453 -272 -220 7 -1,003 -1,795 -1,648 20 U.S. direct investments abroad............................................ -3,254 -4,445 -1,257 -897 -934 -1,370 -1,393 -1,399 21 Foreign direct investments in the United States.............. 832 969 105 218 160 92 -16 -319 22 Foreign securities.................................................................... -1,494 -942 93 -488 -337 -353 -388 -224 23 U.S. securities other than Treasury issues......................... 3,112 2,190 374 720 792 559 196 564 24 Other, reported by U.S. banks............................................ 477 199 68 44 56 -121 -236 -289 25 Other, reported by U.S. nonbanking concerns................. 277 576 345 183 270 190 42 19 26 Balance on current account and long-term capital 4.......................... -2,879 -3,038 -570 -340 -832 -1,283 -3,237 -3,101 27 Nonliquid short-term private capital flows, net....................... -602 -545 -140 -115 -175 -384 -394 -1,167 28 Claims reported by U.S. banks............................................ -658 -1,015 -268 -189 -396 -73 -171 -991 29 Claims reported by U.S. nonbanking concerns............... -35 -360 -23 -50 -171 -125 -138 -248 30 Liabilities reported by U.S. nonbanking concerns.......... 91 830 151 124 392 -186 -85 72 31 Allocations of special drawing rights (SDR’s)........................ 867 217 217 216 180 179 179 32 Errors and omissions, net............................................................. -2,603 -1,104 -375 -437 -233 -1,017 -2,330 -5,204 33 Net liquidity balance................................................................................ -6,084 -3,821 -868 -675 -1,024 -2,504 -5,782 -9,293 34 Liquid private capital flows, net.................................................. 8,786 - 6,000 -536 -1,400 -2,454 -3,029 51 -2,828 35 Liquid claims............................................................................ 124 242 -160 -17 157 -315 90 -520 36 Reported by U.S. banks................................................ -209 -119 -127 -53 -79 -90 35 -405 37 Reported by U.S. nonbanking concerns................... 333 361 -33 36 236 -225 55 -115 38 Liquid liabilities....................................................................... 8,662 -6,242 -376 -1,383 -2,611 -2,714 -39 -2,308 39 To foreign commercial banks...................................... 9,166 -6,507 -441 -1,315 - 2,888 -3,065 -92 -2,092 40 To international and regional organizations............ -63 179 -124 82 79 279 198 155 41 To other foreigners........................................................ -441 86 189 -150 198 72 -145 -371 42 Official reserve transactions balance..................................................... 2,702 -9,821 -1,404 -2,075 -3,478 -5,533 -5,731 -12,121 Financed by changes in— 43 Nonliquid liabilities to foreign official reserve agencies reported by U.S. Government.................................................. -162 535 735 -12 77 -8 -8 -9 44 Nonliquid liabilities to foreign official agencies reported -836 -810 -235 -233 -188 -202 -160 -173 45 Liquid liabilities to foreign official agencies............................. -517 7,619 99 1,736 2,765 5,061 5,240 11,109 46 U.S. official reserve assets, net..................................................... -1,187 2,477 805 584 824 682 659 1,194 47 Gold........................................................................................... -967 787 14 395 422 109 456 300 48 SDR’s........................................................................................ -851 -254 -251 -76 -55 17 -29 49 814 2,152 818 34 469 373 -66 72 50 Gold tranche position in IMF............................................. -1,034 389 227 406 9 255 252 851 Memoranda: 51 Transfers under military grant programs, (excluded from lines 2, 4, and 14)....................................................................... 756 613 191 116 169 191 162 256 52 Reinvested earnings of foreign incorporated affiliates of U.S. firms (excluded from lines 7 and 20)............................. 2,532 2,885 (5) (5) (5) (5) (5) (5) 53 Reinvested earnings of U.S. incorporated affiliates of foreign firms (excluded from lines 9 and 21)........................ 431 434 (5) (5) (5) (5) (5) (5) For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ U.S. BALANCE OF PAYMENTS AND FOREIGN TRADE A 75 1. U.S. BALANCE OF PAYMENTS-Continued (In millions of dollars) 1970 1971 Credits -f, debits — 1969 1970 II III IV I II IIIP Balances excluding allocations of SDR’s—Seasonally adjusted Net liquidity balance............................................................................ -6,084 -4,688 -1,085 -892 -1,240 -2,684 -5,961 -9,472 Official reserve transactions balance................................................. 2,702 - 10,688 -1,621 -2,292 -3,694 -5,713 -5,910 -12,300 Balances not seasonally adjusted Balance on goods and services (line 11).......................................... 2,011 3,592 1,300 -291 1,349 1,513 228 -1,400 Balance on goods, services, and remittances (line 13)................. 745 2,182 925 -657 1,002 1,188 -140 -1,795 Balance on current account (line 15)................................................ -899 444 487 -1,060 552 732 -670 -2,282 Balance on current account and long-term capital 4 (line 26)__ -2,879 -3,038 -899 -1,535 706 -1,256 -3,615 -4,428 Balances including allocations of SDR’s: Net liquidity (line 33).................................................................. -6,084 -3,821 -1,704 -1,454 -152 -1,843 -6,596 - 10,112 Official reserve transactions (line 42)....................................... 2,702 -9,821 -2,069 -2,612 -3,174 -4,718 -6,462 -12,679 Balances excluding allocations of SDR’s: -6,084 -4,688 -1,704 -1,454 -152 -2,560 -6,596 - 10,112 Official reserve transactions........................................................ 2,702 - 10,688 -2,069 -2,612 -3,174 -5,435 -6,462 -12,679 1 Adjusted to balance of payments basis; excludes transfers under 3 Equal to net exports of goods and services in national income and military grants, exports under U.S. military agency sales contracts and product accounts of the United States. imports of U.S. military agencies. 4 Includes some short-term U.S. Govt, assets. 2 Includes fees and royalties from U.S. direct investments abroad or 5 Not available. from foreign direct investments in the United States. Note.—Data are from U.S. Department of Commerce, Office of Busi­ ness Economics. Details may not add to totals because of rounding. 2. MERCHANDISE EXPORTS AND IMPORTS (Seasonally adjusted; in millions of dollars) Exports 1 Imports 2 Trade balance Period 1969 1970 1971 1972 1969r 1970 1971 1972 1969 1970 1971 1972 Month: Jan... 3 2,161 3,406 3,733 4,221 32,002 3,223 3,683 4,540 159 183 50 -319 Feb.. 3 2,266 3,547 3,691 . 32,672 3,278 3,550 -406 269 141 Mar.. 3 3,188 3,376 3,815 . 32,982 3,218 3,565 206 158 250 Apr.. 3 3,318 3,409 3,521 . 3 3,183 3,263 3,754 135 146 -232 May. 33,268 3,661 3,783 . 33,257 3,338 3,983 11 323 -201 June. 33,179 3,730 3,661 . 3 3,152 3,266 4,019 27 465 -358 July., 3,182 3,699 3,493 3,074 3,255 3,790 108 444 -297 Aug.. 3,366 3,592 3,678 3,163 3,346 3,934 203 246 -256 Sept.. 3.341 3,553 4,511 3,078 3,428 4,245 263 125 265 Oct.. 3.342 3,689 2,710 3,192 3,501 3,531 150 188 -821 Nov.. 3,398 3,499 3,160 . 3,180 3,428 3,387 218 71 -227 Dec.. 3,280 3,570 3,859 3,078 3,404 4,132 202 166 -274 Quarter 1.... 7,615 10,328 11,239 7,655 9,719 10,798 -40 609 441 11... 9,765 10,800 10,965 . 9,591 9,867 11,755 174 933 -790 111... 9,889 10,845 11,681 9,315 10,029 11,969 574 816 -288 IV... 10,020 10,758 9,728 9,450 10,333 11,051 570 425 -1,323 Year4.. 37,332 42,662 43,555 . 36,043 39,963 45,602 1,289 2,699 -2,047 1 Exports of domestic and foreign merchandise; excludes Dept, of 3 Significantly affected by strikes. Defense shipments of grant-aid military equipment and supplies under 4 Sum of unadjusted figures. Mutual Security Program. 2 General imports including imports for immediate consumption plus Note.—Bureau of the Census data. Details may not add to totals be­ entries into bonded warehouses. cause of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 76 U.S. GOLD TRANSACTIONS □ MARCH 1972 U.S. NET MONETARY GOLD TRANSACTIONS WITH FOREIGN COUNTRIES AND INTERNATIONAL ORGANIZATIONS (Net sales (—) or net acquisitions; in millions of dollars at $35 per fine troy ounce) 1970 1971 Area and country 1963 1964 1965 1966 1967 1968 1969 1970 1971 IV III IV Western Europe: Austria.................................. -82 -55 -100 -25 Belgium................................. -40 -83 -58 -110 -110 France.................................... -5i8 -405 -884 -6oi 600 325 -473 -129 -282 -191 Germany, Fed. Rep. of. . , -225 500 Ireland................................... -1 -2 -2 -2 -52 41 Italy...................................... 200 -80 -60 -85 -209 -76 Netherlands........................ -60 -35 -19 -50 -25 -30 -25 Spain.................................... -130 -32 -180 51 Switzerland......................... -81 -50 -2 -30 -50 -25 -50 -175 -75 -50 -50 United Kingdom............... 329 618 150 80 -879 -835 Bank for Intl. Settlements. 200 Other.................................... -35 -49 16 -47 U -29 -21 15 -6 -22 Total. -399 -1,299 -659 -980 -669 969 -204 -796 -180 -85 -448 -263 Canada 200 150 50 Latin American republics: Argentina ....................... -39 -25 -25 -28 -23 Brazil................................. -3 -23 -23 Colombia......................... 7 -1 Venezuela......................... Other................................. -11 -6 -40 -29 Total. 32 56 -41 -65 -54 -131 Asia: Iraq................. -42 Japan............... -119 -119 Lebanon......... -95 -35 -35 Malaysia......... -34 -10 -10 Philippines. .. 25 9 40 -4 -2 -8 -i -l Saudi Arabia. -50 Singapore----- -81 11 -30 Other............... -13 -6 -14 -14 -22 -75 -9 ' 2—9i 21 -1 Total................... 12 3 -24 -44 -366 -213 -197 -32 -1 All other......................... -36 -7 -16 3-166 3-68 -81 -75 Total foreign countries. -392 -36 -1,322 -608 -1,031 -1,118 957 -631 -845 4-563 -102 -445 -296 Intl. Monetary Fund5.. 6-225 177 22 -3 10 -156 -22 4142 -7 -11 -4 Grand total -392 -36 -1,547 -431 -1,009 -1,121 967 -787 -867 -422 -109 -457 -300 -1 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

MARCH 1972 □ 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 of Total Tot G al o 2 ld st T o r c e k a i sury v c fo e C u c r r r i o e t r e i i e n b s g n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 E m n o d n t o h f Total To G ta o l 2 ld st T o r c e k a 1 sury v c fo u c C e r i r r e o e t r i s i e n b g 5 n ­ l n e ­ p R I o e M s s i i n e t F i r o v 3 n e SDR’s4 1958... 22,540 20,582 20,534 1 ,958 1971 1959... 21 504 19’507 19,456 1,997 Feb___ 14,534 11,039 10,732 327 1,700 1 468 1960... 19,359 17’804 17,767 1,555 Mar.... 14,342 10 963 10 732 256 1 680 1*443 Apr.... 14,307 10,925 10*732 257 1 *682 l’443 1961... 18,753 16,947 16,889 116 1,690 May... 13,811 10,568 10,332 318 1,678 1,247 1962... 17,220 16,057 15,978 99 1,064 June... 13,504 10,507 10,332 322 1,428 1,247 1963... 16,843 15,596 15,513 212 1,035 July.... 13,283 10,453 10,332 250 1,433 1,147 1964... 16,672 15,471 15,388 432 769 Aug.... 12,128 10,209 10,132 248 574 1,097 1965... 15,450 613,806 613,733 781 6 863 Sept__ 12,131 10,207 10,132 250 577 1,097 Oct.. . . 12,146 10,207 10,132 259 580 1,100 1966... 14,882 13,235 13,159 1,321 326 Nov... . 12,131 10,206 10,132 243 582 1,100 1967.. . 14,830 12,065 11,982 2,345 420 Dec___ 812,167 10,206 10,132 8 276 585 1,100 1968... 15,710 10,892 10,367 3,528 1,290 1969.. . 7 16,964 11,859 10,367 72,781 2,324 1972 1970... 14,487 11,072 10,732 629 1,935 851 Jan.. . . 12,879 10,206 10,132 276 587 1,810 1971... 812,167 10,206 10,132 8 276 585 1,100 Feb.... 12,330 9,662 9,588 276 582 1,810 1 Includes (a) gold sold to the United States by the International Mon­ 6 Reserve position includes, and gold stock excludes, $259 million gold etary Fund with the right of repurchase, and (b) gold deposited by the subscription to the IMF in June 1965 for a U.S. quota increase which IMF to mitigate the impact on the U.S. gold stock of foreign purchases became effective on Feb. 23, 1966. In figures published by the IMF from for the purpose of making gold subscriptions to the IMF under quota June 1965 through Jan. 1966, this gold subscription was included in the increases. For corresponding liabilities, see Table 6. U.S. gold stock and excluded from the reserve position. 2 Includes gold in Exchange Stabilization Fund. 7 Includes gain of $67 million resulting from revaluation of the German 3 The United States has the right to purchase foreign currencies equiva­ mark in Oct. 1969, of which $13 million represents gain on mark holdings lent to its reserve position in the IMF automatically if needed. Under ap­ at time of revaluation. propriate conditions the United States could purchase additional amounts 8 Includes $28 million increase in dollar value of foreign currencies equal to the U.S. quota. See Table 5. revalued to reflect market exchange rates as of Dec. 31, 1971. 4 Includes allocations by the IMF of Special Drawing Rights as follows: (in millions of dollars) 867 on Jan. 1,1970; 717 on Jan. 1, 1971; and 710 on Note.—See Table 23 for gold held under earmark at F.R. Banks for Jan. 1. 1972; plus net transactions in SDRs. foreign and international accounts. Gold under earmark is not included 5 For holdings of F.R. Banks only, see pp. A-12 and A-13. 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 other countries Period with IMF position in IMF P s t u a d io y b o n m s o ll c s f a e r r i n i s p n t ­ s by s g N I a o M l e l e d t s F i T t c f i r c o u o a i r r n e n e r s s s i e g a n 2 i n c n ­ ­ I i d M n o c F l i o n la m n rs e e t P d u o rc l o l h a f a r s s e 3 s pu d r o R c i l h n l e a a ­ r s s es c T ha o n ta g l e Amount P q e U u r o . o c S f t e . a nt p ( e e r n io d d o ) f 4 1946—1957. 2,063 600 -45 -2,670 827 775 775 28 1,975 1958—1963. 1,031 150 60 -1,666 2,740 2,315 3,090 75 1,035 1964—1966. 776 1,640 45 -723 6 1,744 4,834 94 5326 1967. 20 -114 -94 4,740 92 420 1968. -84 20 -806 -870 3,870 75 1,290 1969. 22 19 -1,343 268 -1,034 2,836 55 2,324 1970. 1,155 6712 150 25 -854 741 1,929 4,765 71 1,935 1971 . 1,362 -28 -24 40 1,350 6.115 91 585 1971—Feb.. 5,000 75 1,700 Mar.. 20 20 5,020 75 1,680 Apr.. -3 1 -2 5,018 75 1,682 May. -2 -1 7 4 5,022 75 1,678 June. 250 -1 1 250 5,272 79 1,428 July.. -5 -5 5,267 79 1,433 Aug.. 862* -3 859 6,126 91 574 Sept.. -3 -3 6,123 91 577 Oct... -3 -3 6,120 91 580 Nov.. -2 -2 6,118 91 582 Dec.. -3 -3 6.115 91 585 1972—Jan.. -2 -2 6,113 91 587 Feb.. 5 5 6,118 91 582 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. □ MARCH 1972 6. U.S. LIQUID LIABILITIES TO FOREIGNERS (In millions of dollars) Liabilities to Intl. Liabilities to foreign i countries Liabilities to non­ Monetary Fund arising monetary inti, and from gold transactions regional organizations 5 Official institutions 3 Banks and other foreigners Non­ p E e o r n i f o d d Total Total p G o d s o e i l t ­ d 1 m in G e v o n e l t s d t 2 ­ Total i i p S t n b l i t i o h a e e a b r s U r o n b y t m r k e i . r l S t d e s ­ ­ . ­ M n b G o U a a o a t o b n n r . e v S l d k d s e t . e s , 4 t­ c m T o b U a n a i o r u a b b n e v n r . r l S l a y d e k e d e . s r e s ­ t t ­ ­ Total i i p S t n b l i t i o h e a a e b r s U o r n b y t m r k i e r . l t S d e s ­ ­ . ­ M n b G o U a a a o t o b r n n . e v S k l d d s e t . e s , t 4 ­ Total i i n p S t b l i t i o h e a a e U b r s o r n b y t m . r k e i r S l t d e s ­ ­ . ­ 6 M n b G o U a a o a t o b n n r . e v S l d k d s e t . e s , 4 t ­ notes 1957............. 715,825 200 200 7,917 5,724 542 1958............. 716,845 200 200 8,665 5,950 552 1959 ........... 19,428 500 500 10,120 9,154 966 7,618 7,077 541 1,190 530 660 1960 8.......... J \2 20 1 ,0 9 2 9 7 4 8 8 0 0 0 0 8 8 0 0 0 0 1 1 1 1 , , 0 0 7 8 8 8 1 1 0 0 , , 2 2 1 1 2 2 8 8 6 7 6 6 7 7) ,5 5 9 9 1 8 7 7 , , 0 04 4 8 8 5 5 4 5 3 0 1 1, , 5 5 4 2 1 5 7 7 5 5 0 0 7 79 7 1 5 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 10 0, ,9 94 4 0 0 8 8 9 9 0 0 8 8^ ,2 3 7 5 5 7 7 7, , 8 7 4 5 1 9 5 5 1 1 6 6 1 1 , , 9 94 4 8 9 7 70 0 3 4 1 1 , , 2 2 4 4 5 5 1962 8......... / \ 2 2 4 4 , , 0 0 6 6 8 8 8 80 0 0 0 8 8 0 0 0 0 1 12 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 44 4 8 8 2 2, , 1 1 6 9 1 5 1 1 , , 2 25 8 0 4 9 91 11 1 /26,361 800 800 14,387 12,467 1,217 703 9,214 8,863 351 1,960 808 1,152 126,322 800 800 14,353 12,467 1,183 703 9,204 8,863 341 1,965 808 1,157 1964 8.......... \ ( 2 2 9 8, , 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 13 3 , , 2 2 2 2 0 4 1 1 , , 1 1 2 2 5 5 1 1 , , 0 0 7 7 9 9 1 1 1 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 8 1 1 8 8 9 9 0 0 4 4 1965............. 29,115 834 34 800 15,372 13,066 1,105 1,201 11,478 11,006 472 1,431 679 752 1l yQo«o 68.......... \ / 2 2 9 9 , , 7 9 7 0 9 4 1 1, , 0 01 1 1 1 2 2 1 11 1 8 80 00 0 1 13 3 , , 6 6 5 0 5 0 1 1 2 2 , ,5 4 3 8 9 4 | 8 8 6 6 0 0 2 2 5 5 6 6 | 1 1 4 4 , , 3 20 8 8 7 1 13 3 , , 6 85 8 9 0 : 5 5 2 2 8 8 9 9 0 0 5 6 5 5 8 8 1 0 3 3 2 2 5 5 1967 8.......... \ ( 3 3 3 3 , , 1 27 1 1 9 1 1 , , 0 0 3 3 3 3 2 2 3 3 3 3 j 1 8 8 0 0 0 0 1 1 5 5, , 6 6 5 4 3 6 1 1 4 4 , , 0 0 2 3 7 4 9 90 08 8 | I 7 7 1 11 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 s.......... / \3 3 3 3 , , 6 8 1 2 4 8 1 1 , , 0 0 3 3 0 0 2 2 3 30 0 8 8 0 0 0 0 1 1 2 2 , , 4 5 8 4 1 8 1 1 1 1 , , 3 3 1 1 8 8 4 5 6 2 2 9 7 7 0 01 1 1 19 9 , , 3 5 8 2 1 5 1 1 8 8 , , 9 9 1 1 6 6 4 6 6 0 5 9 7 7 2 2 5 2 i 6 68 8 3 3 4 39 2 I i1 vQoAyO f0t.......... \ ( 4 4 1 1 , , 8 7 9 35 4 1 1, ,0 01 19 9 2 21 19 9 8 8 0 00 0 1 11 1 , , 9 9 7 5 8 5 1 1 1 1 , , 0 07 5 7 4 3 3 4 4 6 6 ; 9 9 5 5 5 5 5 5 2 2 8 8, , 1 2 0 3 2 4 2 2 7 7, , 7 5 0 77 9 5 5 2 2 5 5 6 6 5 63 9 6 6 0 1 9 3 5 5 0 0 l1 y07/Hv -vec.8° r' /43,291 566 166 400 20,068 19,333 306 429 21,813 21,166 647 844 820 24 \43,242 566 166 400 20,057 19,333 295 429 21,773 21,208 565 846 820 26 1971-Jan.r . 43,666 559 159 400 20,491 19,775 287 429 21,548 20,936 612 1,068 1,043 25 Feb.r 44,063 559 159 400 22,320 21,599 292 429 20,191 19,582 609 993 951 42 Mar.r 45,483 559 159 400 24,840 24,119 292 429 18,958 18,360 598 1,126 985 141 Apr.r 47,676 548 148 400 27,252 26,531 292 429 18,587 17,984 603 1,289 1,148 141 May r 51,820 548 148 400 32,090 31,346 292 452 17,845 17,276 569 1,337 1,195 142 Juner 51,401 548 148 400 30,639 26,808 379 3,452 18,890 18,317 573 1,324 1,181 143 July r 53,295 544 144 400 32,952 26,868 632 5,452 18,409 17,830 579 1,390 1,247 143 Aug.r 59,914 544 144 400 40,671 34,016 870 5,785 17,202 16,659 543 1,497 1,343 154 Sept.r 60,770 544 144 400 42,150 35,081 1,015 6,054 16,596 16,081 515 1,480 1,325 155 Oct.r 62,089 544 144 400 43,390 36,063 1,272 6,055 16,722 16,212 510 1,433 1,278 155 Nov. 62,483 544 144 400 45,068 37,266 1,747 6,055 15,406 14,925 481 1,465 1,310 155 Dec. i / \ 6 6 4 4 , , 1 20 5 7 4 5 5 4 4 4 4 1 1 4 44 4 4 40 0 0 0 4 4 7 7 , , 6 0 9 49 6 3 3 9 9 , , 6 0 8 0 1 1 1 1 , ,9 95 5 5 5 6 6, , 0 0 9 6 3 0 1 15 4 , , 0 3 9 9 1 3 1 1 4 3, , 9 6 4 4 6 4 4 4 4 47 7 1 1, , 5 5 2 2 1 3 1 1 , , 3 3 6 6 5 7 1 15 56 6 1 Represents liability on gold deposited by the International Monetary 7 Includes total foreign holdings of U.S. Govt, bonds and notes, for Fund to mitigate the impact on the U.S. gold stock of foreign purchases which breakdown by type of holder is not available. for the purpose of making gold subscriptions to the IMF under quota in­ 8 Data on the two lines shown for this date differ because of changes in creases. reporting coverage. Figures on the first line are comparable with those 2 U.S. Govt, obligations at cost value and funds awaiting investment shown for the preceding date; figures on the second line are comparable obtained from proceeds of sales of gold by the IMF to the United States with those shown for the following date. to acquire income-earning assets. Upon termination of investment, the 9 Includes $17 million increase in dollar value of foreign currency same quantity of gold can be reacquired by the IMF. liabilities resulting from revaluation of the German mark in Oct. 1969. 3 Includes Bank for International Settlements and European Fund. 10 Data on second line differ from those on first line because certain 4 Derived by applying reported transactions to benchmark data; accounts previously classified as “Official institutions” are included in breakdown of transactions by type of holder estimated for 1960-63. “Banks” and a number of reporting banks are included in the series for Includes securities issued by corporations and other agencies of the U.S. the first time. Govt, that are guaranteed by the United States. 5 Principally the International Bank for Reconstruction and Develop­ Note.—Based on Treasury Dept, data and on data reported to the ment and the Inter-American Development Bank. Treasury Dept, by banks and brokers in the United States. Data correspond 6 Includes difference between cost value and face value of securities in to statistics following in this section, except for minor rounding differences. IMF gold investment account. Liabilities data reported to the Treasury Table excludes IMF “holdings of dollars,” and holdings of U.S. Treasury include the face value of these securities, but in this table the cost value of letters of credit and non-negotiable, non-interest-bearing special United the securities is included under “Gold investment.” The difference, which States notes held by other international and regional organizations. amounted to $14 million at the end of 1971, is included in this column. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 79 7. U.S. LIQUID LIABILITIES TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES, BY AREA (Amounts outstanding; in millions of dollars) End of period c f o o T u r o n e t t i a r g i l n es E W u e ro st p e e r n * Canada A re m L pu e a b r ti i l n c ic a s n Asia Africa cou O n t t h ri e e r s 2 196 7 15,646 9,872 996 1,131 3,145 249 253 1968 3............. 12,548 7,009 533 1.354 3,168 259 225 12,481 7,001 532 1.354 3,122 248 224 1969 3 ........... 4 1 1 1 1 , , 9 9 7 5 8 5 5 5 . .8 82 23 3 4 4 9 95 5 1 1 , , 6 7 7 0 9 2 3 3 . . 1 1 9 9 0 0 5 5 4 4 6 6 2 2 2 2 2 2 1970—Dec. 31 / \ 2 2 0 0 , , 0 0 6 5 8 7 1 1 3 3 , , 0 0 2 1 1 6 6 6 6 6 2 2 1 1 . . 5 5 6 6 2 2 4 4, , 0 0 5 6 5 0 4 4 0 0 7 7 3 3 5 55 6 1971— Jan .. 20,491 13,680 678 1.388 4,041 381 323 Feb.'. 22,320 15,374 727 1.389 4,162 325 343 Mar.r. 24,840 17,151 801 1,236 4,997 242 413 Apr.r. 27,252 19,119 818 1,244 5,285 257 529 Mayr. 32,090 22,720 865 1,213 6,395 286 611 Juner. 30,639 20,676 843 1,262 6,895 271 692 Julyr. , 32,952 22,447 921 1,286 7,252 285 761 Aug.r. 40,671 25,460 1,185 1,348 11,545 312 821 Sept.'. 42,150 26,035 1,173 1,229 12,631 296 786 Oct.r. , 43,390 26,550 1,241 1,298 13,235 276 790 Nov... 45,068 27,554 1,345 1,275 13,776 248 870 Dec.5* / \4 4 7 7 , , 0 6 4 9 9 6 2 2 9 9 , , 4 4 5 1 1 1 1 1 . . 3 3 4 4 0 0 1 1, , 3 3 6 7 1 6 1 13 4 , , 6 3 0 0 2 0 4 4 1 1 5 5 8 8 6 6 5 9 1 Includes Bank for International Settlements and European Fund. accounts previously classified as “Official institutions” are included in 2 Includes countries in Oceania and Eastern Europe, and Western Euro­ “Banks” and a number of reporting banks are included in the series for pean dependencies in Latin America. the first time. 3 See note 8 to Table 6. Note.—Data represent short-term liabilities to the official institutions 4 Includes $17 million increase in dollar value of foreign currency of foreign countries, as reported by banks in the United States, and foreign liabilities resulting from revaluation of the German mark in Oct. 1969. official holdings of marketable and convertible nonmarketable U.S. Govt, 5 Data on second line differ from those on the first line because certain securities with an original maturity of more than 1 year. 8. SHORT-TERM LIABILITIES TO FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY TYPE (Amounts outstanding; in millions of dollars) To all foreigners To nonmonetary international and regional organizations6 Payable in dollars IMF Deposits End of period Total i Total Dem D an e d pos T it i s me 2 b T i c c r l e l U e a s r a t . t e S s i a f s u . i n ­ r 3 d y s O l t i h e a t o r h b m r e . t 4 r ­ P r f e a o c n y r i u e n c a r i i b g ­ e l n s e i m n g v o e e l n s d t t ­ 5 Total Demand Time2 b T i c r l c U e l e s a r a . t t S s i e a f u . s i n r ­ d y s l O t i h e a t r o b h m r . e t 4 r ­ 1969................................ 40,199 39,770 20,460 6,959 5,015 7,336 429 800 613 62 83 244 223 1970__Der 7r / \4 4 1 1 , , 7 7 6 1 1 9 4 41 1 , , 3 3 5 9 1 3 1 1 5 5 , , 7 7 8 9 5 5 5 5, , 9 9 6 2 1 4 1 14 4 , , 1 12 2 3 3 5 5 , , 5 5 1 1 9 4 3 3 6 6 8 8 4 4 0 0 0 0 8 8 2 20 0 6 6 9 9 1 1 5 5 9 9 2 2 1 1 1 1 3 3 8 81 1 1971—Jan.r................... 42,154 41,776 14,769 5,673 14,453 6,881 378 400 1,043 115 155 273 499 Feb.r.................. 42,532 42,122 13,520 5,473 16,390 6,739 410 400 951 64 149 279 459 Mar.r................. 43,864 43,212 11,854 5,158 18,703 7,497 652 400 985 73 166 242 503 Apr.T.................. 46,063 45,426 10,466 4,952 22,356 7,652 637 400 1,148 62 202 206 678 Mayr.................. 50,217 49,598 10,002 4,900 26,961 7,735 619 400 1,195 49 221 209 716 Juner.................. 46,706 46,046 10,869 4,968 22,763 7,446 660 400 1,181 60 232 164 724 July r................... 46,345 45,693 10,274 4,955 23,439 7,025 652 400 1,247 79 224 170 774 Aug.T................. 52,418 51,768 9,294 5,026 30,198 7,250 650 400 1,343 61 202 269 810 Sept.r................. 52,887 52,490 10,605 5,054 29,772 7,059 397 400 1,325 92 212 146 875 Oct.r................... 53,953 53,573 11,860 5,101 29,758 6,854 380 400 1,278 78 175 168 856 Nov..................... 53,901 53,531 10,883 5,257 30,723 6,668 370 400 1,310 69 202 157 882 Dec ® & /55,392 55,006 10,402 5,202 33,025 6,377 386 400 1,365 73 185 210 896 155,412 55,020 6,460 4,250 33,025 11,285 392 400 1,367 73 187 210 896 1972—Jan.*................... 56,450 56,018 6,157 4,279 33,906 11,676 432 400 1,521 86 200 338 897 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. □ MARCH 1972 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 9 Payable in dollars Payable in dollars Payable End of period Total Dema D n e d posi T ts ime2 T b c i r c l e U e l a s r a t . t e s S i a s f u . n i r 3 ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ f r o e c n r i u e c n r i i g ­ e n s Total Dema D n e d posi T ts ime2 T bi c c r l U e e a ls a r t . t e S s i a s u f . n i r 3 ­ d y s O l t h i e a t o r h b m r e t . ­ 4 r c P u f r a o r y r e i e a n n i b c g l i n e es 1969......................... 38,786 20,397 6,876 3,971 7,113 429 11,077 1,930 2,942 3,844 2,159 202 1970—Dec. 7 r .. / 1 4 4 0 0 , , 4 54 9 1 9 1 1 5 5 , , 7 7 1 2 6 6 5 5 , , 7 8 6 0 5 2 1 1 3 3. . 5 5 1 11 1 5 5 , , 1 13 3 3 8 3 3 6 6 8 8 1 1 9 9 . . 3 3 3 3 3 3 1 1 . . 6 6 5 5 2 2 2 2 . . 5 5 5 5 4 4 1 1 3 3 . . 3 3 6 6 7 7 1 1 , , 6 6 1 1 2 2 1 1 4 4 8 8 1971 _ jan. r............ 40,711 14,654 5,518 13,781 6,381 378 19,775 1,744 2,490 13,638 1,755 148 Feb.r........... 41,181 13,456 5,324 15,711 6,280 410 21,599 1,688 2,433 15,550 1,778 150 Mar.r........... 42,479 11,781 4,991 18,061 6,993 652 24,119 1,579 2,243 17,916 1,981 400 44,515 10,404 4,750 21,750 6,973 637 26,531 1,628 2.204 20,119 2,180 400 48,622 9,953 4,679 26,352 7,019 619 31,346 1,643 2.204 24,702 2,377 io 420 45,125 10,809 4,736 22,199 6,722 660 26,808 1,463 2,251 20,097 2,577 420 July r............ 44,698 10,195 4,732 22,869 6,249 652 26,868 1,469 2,307 19,605 3,067 420 50,675 9,233 4,823 29,529 6,439 650 34,016 1,264 2,371 26,674 3,286 421 51,162 10,513 4,843 29,226 6,183 397 35,081 1,450 2,392 27,855 3,226 158 Oct.r........... 52,275 11,781 4,926 29,190 5,997 380 36,063 1,231 2,480 28,982 3,212 158 Nov.............. 52,191 10,814 5,054 30,166 5,786 370 37,266 1,263 2,505 30,071 3,269 158 J 53,627 10,329 5,017 32.415 5,480 386 39,681 1,620 2,504 32.311 3,088 158 Dec.8 p ... . 1 53,645 6,387 4,063 32.415 10,388 392 39,001 1,327 2,076 32.311 3,122 165 1972—Jan.®........... 54,529 6,071 4,079 33,168 10,779 432 39,551 1,185 2,076 33,049 3,075 166 To banks11 To other foreigners To banks Payable in dollars and other foreigners: End of period Total payable in Total Dema D n e d posi T ts ime2 T b c i r c l U e e l a s r a . t t s S e i a u f s . n i r ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ Total Dema D nd eposi T ts ime2 T b c i r c l U e e l a s r a . t t s S e i a u f s . n i r ­ d y s O l t i h e a t o r h b m r e . t 4 r ­ f r o e c r n u e c r i i g ­ e n s 1969......................... 27,709 23,419 16,756 1,999 20 4,644 4,064 1,711 1,935 107 312 226 1970—Dec. 7 r___ / \ 2 21 1 , , 2 1 0 6 8 6 1 1 6 6 , , 9 9 1 4 7 9 1 12 2 , , 3 3 8 7 5 6 1 1 , , 3 3 5 26 4 1 1 4 4 3 3, , 1 2 9 0 7 2 4 4 , , 0 0 2 3 9 9 1 1 , , 6 6 8 8 8 8 1 1 , , 8 8 9 8 5 6 1 1 3 3 1 1 3 3 2 2 5 5 2 2 2 2 0 0 1971—Jan.r........... 20,936 16,668 11,220 1,185 1132 4,250 4,038 1,689 1,843 130 376 230 Feb.r........... 19,582 15,219 10,041 1,016 4,150 4,103 1,727 1,875 148 353 260 Mar.r.......... 18,360 14,029 8,476 879 10 4,665 4,078 1,726 1,870 135 347 253 Apr.r........... 17,984 13,617 6,970 654 1 ,516 4,477 4,129 1,805 1,892 116 315 238 May T........... 17,276 13,036 6,573 590 1,518 4,354 4,041 1,737 1 ,885 131 287 199 Juner........... 18,317 14,121 7,586 649 2,016 3,869 3,956 1,760 1,835 86 276 240 July r............ 17,830 13,704 7,030 600 3,168 2,905 3,894 1,696 1,825 96 277 232 Aug.r........... 16,659 12,590 6,284 665 2,769 2,872 3,839 1,684 1,787 87 280 230 Sept.r........... 16,081 12,196 7,486 739 1,286 2,686 3,646 1,577 1,712 85 272 239 Oct.r........... 16,212 12,256 8,845 786 120 2,504 3,734 1,705 1,660 89 281 222 Nov.............. 14,925 10,982 7,871 879 9 2,223 3,732 1,680 1,670 87 296 211 Dec.8 p ... . / \ 1 1 3 4 , , 9 6 4 4 6 4 1 1 0 0 , , 0 7 3 2 9 2 7 3 , , 0 4 4 0 8 0 8 3 6 2 5 0 8 8 2 6 , , 1 99 1 5 8 3 3 , , 6 6 7 9 9 4 1 1 , ,6 6 6 6 1 0 1 1 , ,6 6 4 6 8 6 9 9 6 6 2 27 7 1 3 2 2 2 2 8 8 1972—Jan.®........... 14,978 10,942 3,185 335 4 7,418 3,769 1,701 1,667 115 285 267 1 Data exclude “holdings of dollars” of the International Monetary liabilities of U.S. banks to their foreign branches and those liabilities of Fund. U.S. agencies and branches of foreign banks to their head offices and 2 Excludes negotiable time certificates of deposit, which are included foreign branches which were previously reported as deposits are included in “Other.” in “Other short-term liabilities”; certain accounts previously classified 3 Includes nonmarketable certificates of indebtedness issued to official as “Official institutions” are included in “Banks”; and a number of institutions of foreign countries. reporting banks are included in the series for the first time. 4 Principally bankers’ acceptances, commercial paper, and negotiable 9 Foreign central banks and foreign central govts, and their agencies, time certificates of deposit. See also note 8(a). and Bank for International Settlements and European Fund. 5 U.S. Treasury bills and certificates obtained from proceeds of sales of 10 Increase in valuation resulting from revaluation of Swiss franc. gold by the IMF to the United States to acquire income-earning assets. 11 Excludes central banks, which are included in “Official institutions.” Upon termination of investment, the same quantity of gold can be re­ acquired by the IMF. Note.—“Short-term” refers to obligations payable on demand or having 6 Principally the International Bank for Reconstruction and Develop­ an original maturity of 1 year or less. For data on long-term liabilities ment and the Inter-American Development Bank. reported by banks, see Table 10. Data exclude the “holdings of dollars” Includes difference between cost value and face value of securities in of the International Monetary Fund; these obligations to the IMF consti­ IMF gold investment account. tute contingent liabilities, since they represent essentially the amount of 7 Data on the two lines shown for this date differ because of changes in dollars available for drawings from the IMF by other member countries. reporting coverage. Figures on the first line are comparable in coverage Data exclude also U.S. Treasury letters of credit and non-negotiable, nonwith those shown for the preceding date; figures on the second line are interest-bearing special U.S. notes held by the Inter-American Develop­ comparable with those shown for the following date. ment Bank and the International Development Association. 8 Data on second line differ from those on first line because ^ those Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ 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) 1970 1971 1972 Area and country Dec.r Mayr Juner July r Aug.r Sept.r Oct.r Nov. Dec.ip Jan.P Europe: Austria........................................................... 185 185 203 274 244 244 255 246 254 254 261 Belgium-Luxembourg................................. 597 903 761 781 916 901 875 736 691 701 735 Denmark....................................................... 189 148 175 201 164 173 171 168 168 168 177 Finland.......................................................... 117 107 110 131 116 116 136 134 160 160 156 France............................................................ 2,267 2,275 2,467 3,242 3,663 3,302 2,842 2,858 3,150 3,150 3,234 Germany....................................................... 7,520 12,472 7,268 5,446 5,082 5,339 5,606 5,733 6,601 6,596 6,972 Greece............................................................ 184 146 152 159 160 179 184 175 170 170 167 Italy................................................................ 1,330 1,833 1,760 1,777 2,032 2,286 2,231 1,953 1,886 1,888 1,704 Netherlands................................................... 762 661 609 461 283 302 315 289 270 270 306 Norway.......................................................... 324 465 506 574 649 655 658 714 685 685 702 Portugal......................................................... 274 280 270 271 295 314 307 308 303 303 299 Spain............................................................... 198 232 200 208 204 185 202 185 203 203 187 Sweden........................................................... 503 625 681 718 723 729 729 757 792 7-92 803 Switzerland................................................... 1,948 2,312 2,093 1,914 3,355 3,268 3,306 3,265 3,249 3,249 3,271 Turkey............................................................ 46 43 21 27 26 27 48 67 68 68 36 United Kingdom......................................... 5,504 5,157 6,121 6,209 6,124 6,342 7,223 7,711 7,374 7,379 7,892 Yugoslavia..................................................... 37 38 33 39 31 41 34 40 34 34 35 Other Western Europe2............................ 594 795 1,000 1,417 1,517 1,446 1,404 1,396 1,369 1,376 1,265 U.S.S.R.......................................................... 15 9 9 10 10 11 12 8 14 14 28 Other Eastern Europe................................ 54 50 66 61 45 61 56 67 53 53 111 Total....................................................... 22,648 28,737 24,506 23,921 25,639 25,921 26,594 26,809 27,496 27,515 28,342 Canada............................................................... 4,056 3,136 3,292 3,250 3,316 3,472 3,803 3,590 3,439 3,441 3,593 Latin America: Argentina....................................................... 539 505 447 501 499 419 415 437 441 441 435 Brazil.............................................................. 346 335 361 428 418 358 360 383 343 342 376 Chile............................................................... 266 256 257 235 252 247 211 189 191 191 180 Colombia....................................................... 247 169 183 178 168 178 181 179 188 188 185 Cuba............................................................... 7 7 6 7 7 6 6 6 6 6 6 Mexico........................................................... 821 800 790 705 728 672 680 706 713 715 757 Panama......................................................... 147 165 166 147 149 127 150 150 154 154 158 Peru................................................................ 225 190 200 162 146 162 163 163 164 164 164 Uruguay......................................................... 118 112 116 116 127 117 116 108 108 108 108 Venezuela...................................................... 735 729 786 782 787 806 915 874 963 963 870 Other Latin American republics.............. 620 582 582 624 623 597 608 615 654 655 644 Bahamas and Bermuda.............................. 745 940 960 1,074 885 661 346 376 657 656 339 Netherlands Antilles and Surinam.......... 98 105 101 97 101 87 94 85 87 87 97 Other Latin America.................................. 39 56 46 46 49 44 42 46 38 37 43 Total....................................................... 4,952 4,953 5,002 5,100 4,940 4,482 4,285 4,317 4,706 4,708 4,363 Asia: China Mainland.......................................... 33 33 35 35 34 34 34 34 39 39 39 Hong Kong................................................... 258 313 306 301 311 296 316 336 311 312 304 India............................................................... 302 245 255 222 193 150 154 142 89 89 114 Indonesia....................................................... 73 60 71 67 59 57 69 65 63 63 54 Israel............................................................... 135 125 132 128 115 108 130 133 150 150 133 Japan.............................................................. 5,150 8,192 8,673 8,691 13,136 13,793 14,014 13,919 14,294 14,295 14,179 Korea............................................................. 199 193 201 187 185 195 189 216 201 196 224 Philippines..................................................... 285 340 321 333 328 322 294 304 302 304 269 Taiwan........................................................... 275 293 291 300 281 268 294 248 258 258 280 Thailand......................................................... 508 306 281 237 183 144 131 107 126 126 121 Other.............................................................. 717 595 571 634 551 568 631 579 595 595 784 Total....................................................... 7,936 10,696 11,137 11,135 15,376 15,936 16,255 16,082 16,428 16,427 16,503 Africa: Congo (Kinshasa)........................................ 14 15 16 19 44 25 16 12 12 12 12 Morocco........................................................ 11 9 9 7 10 11 8 9 9 9 10 South Africa................................................. 83 64 61 71 74 81 74 74 78 78 53 U.A.R. (Egypt)............................................ 17 14 15 19 13 25 16 13 24 24 14 Other.............................................................. 395 291 285 299 303 321 331 314 474 474 510 Total....................................................... 521 392 385 415 444 463 445 422 597 597 599 Other countries: Australia........................................................ 389 668 757 830 914 854 854 919 919 916 1,087 All other........................................................ 39 40 46 47 ! 46 34 39 51 42 42 42 428 708 803 877 960 888 893 970 961 957 1,129 Total foreign countries.................................. 40,541 48,622 45,125 44,698 50,675 51,162 52,275 52,191 53,627 53,645 54,529 International and regional: International 3............................................... 975 1,256 1,230 1,242 1,342 1,309 1,276 1,278 1,330 1,332 1,475 Latin American regional............................ 131 201 210 237 262 279 266 287 298 298 305 Other regional4............................................ 114 138 141 168 139 137 136 145 137 139 141 Total....................................................... 1,220 1,595 1,581 1,647 1,743 i 1,725 1,678 1,710 1,765 1,767 1,921 Grand total........................................... 41,761 50,217 46,706 46,345 52,418 52,887 53,953 53,901 55,392 55,412 56,450 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. □ MARCH 1972 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 5 1969 1970 1971 1969 1970 1971 Area or country Area or country Dec. Apr. Dec. Apr. Dec, Dec. Apr. Dec. Apr. Dec. Other Western Europe: Other Asia—Cont.: I C c y e p la r n u d s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 9 1 1 5 0 1 1 0 0 10 7 11 2 J K o u r w da a n it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 6 7 6 3 6 0 5 1 4 4 36 3 20 2 Ireland, Rep. of.......................... 38 32 41 29 16 Laos................................................ 3 4 5 2 3 Lebanon......................................... 83 82 54 60 46 Other Latin American republics: Malaysia........................................ 30 48 22 29 23 Bolivia.......................................... 68 76 69 59 55 Pakistan.......................................... 35 34 38 27 33 Costa Rica................................... 52 43 41 43 62 Ryukyu Islands (incl. Okinawa) 25 26 18 39 29 Dominican Republic................. 78 96 99 90 123 Saudi Arabia................................ 106 166 106 41 79 Ecuador........................................ 76 72 79 72 57 Singapore...................................... 17 25 57 43 35 El Salvador.................................. 69 79 75 80 78 Syria................................................ 4 6 7 3 4 Guatemala.................................... 84 110 100 97 117 Vietnam.......................................... 94 91 179 161 159 Haiti.............................................. 17 19 16 19 18 Honduras..................................... 29 29 34 44 42 Other Africa: Jamaica........................................ 17 17 19 19 19 Algeria............................................ 14 13 17 13 23 Nicaragua.................................... 63 76 59 47 50 Ethiopia (incl. Eritrea)............... 20 33 19 12 11 T Pa ri r n a i g d u a a d y & ... .. T .. o ... b .. a .. g ... o .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 8 1 11 7 1 1 6 0 1 1 5 4 1 1 7 0 K G e h n a y n a a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 3 0 47 7 38 8 1 6 3 9 8 Liberia............................................ 23 41 22 21 23 Ot B he ri r t i L sh a t W in e A st m In er d i i c e a s : ..................... 30 38 33 38 (6) L N So i i b g u y e th a ri e . a . r . . . n . . . . . . . R . . . . . . . h . . . . o . . . . d . . . . . . e . . . . s . . . . i . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 11 8 2 43 11 0 2 19 1 5 7 1 9 2 1 5 2 ( ( 6 6 2 ) ) Sudan.............................................. 3 1 1 1 1 Other Asia: Tanzania........................................ 10 18 9 10 6 C A B a u fg m rm h b a a o n .. d i . s . i . t a . a . . . n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2 6 1 15 5 1 26 4 2 1 2 5 3 1 1 9 0 5 T Z U u a g n m a i n s b i d i a a a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5 6 3 7 7 8 1 7 0 8 1 6 4 5 (6 9 3 ) Ceylon.......................................... 3 4 4 4 4 Iran................................................ 35 41 32 50 59 All other: Iraq................................................ 26 6 11 7 (6) New Zealand................................ 16 18 25 22 23 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 cov­ European Fund, which are included in “Europe.” erage 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 To End of period Total reg i a n i n o t d i n . al Total O in t f i s f o t i n i c t i s u a ­ l Banks1 fo O r e t e r h i s g e n r ­ A t r i g n e a n­ A O L m a t e h t r i e i n c r a Israel Japan Thailand O A t s h i e a r co o u A t n h l t e l r r ies 196 8 3,166 777 2,389 2,341 40 284 257 241 658 201 651 97 196 9 2,490 889 1,601 1,505 55 41 64 175 41 655 70 472 124 1970'........... 1,703 789 914 695 166 54 13 138 6 385 122 240 1971—Jan.'. 1,567 713 854 637 163 53 13 139 6 341 109 238 Feb.'. 1,470 687 784 574 160 50 13 109 6 317 102 235 Mar.' 1,350 630 720 494 167 59 13 91 6 262 96 251 Apr.' 1,187 577 611 407 147 57 13 92 7 186 85 225 May' 1,142 548 594 393 144 57 13 94 182 83 213 June' 1,129 557 572 334 189 48 13 87 130 80 252 July'. 1,024 501 524 284 189 51 13 88 83 91 239 Aug.' 895 480 415 172 190 53 13 66 12 92 223 Sept.' 878 473 405 161 189 55 15 62 12 90 217 Oct... 935 483 452 159 236 57 15 84 12 92 240 Nov.. 911 446 465 170 237 59 15 101 8 89 245 Dec.p 909 445 465 156 253 56 2 109 3 83 261 1972—Jan.P. 998 541 458 145 255 58 105 1 70 273 1 Excludes central banks, which are included with “Official institutions.” Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ 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) 1971 1972 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.** Jan.P Europe: N Be o l r g w iu a m y. - . L ... u .. x ... e . m .... b .. o .. u ... r . g ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * 6 * Switzerland.......................................... 33 34 34 31 30 29 29 29 29 29 60 60 53 United Kingdom................................ 520 518 510 519 485 490 496 460 432 427 362 323 279 Other Western Europe..................... 20 24 25 25 25 25 25 25 49 71 82 85 95 Eastern Europe.................................. 6 6 6 6 6 6 6 6 5 5 5 5 5 Total............................................ 586 589 582 587 552 557 562 525 521 538 516 480 438 Canada..................................................... 178 177 174 173 175 174 175 175 175 175 179 181 179 Latin America: Latin American republics................. 2 2 1 1 1 1 1 1 1 1 1 1 1 Other Latin America........................ 6 6 6 6 6 6 6 6 6 6 6 6 6 Total............................................ 8 8 7 7 7 7 7 7 7 7 7 7 7 Asia: India..................................................... 20 20 20 20 20 20 20 20 20 20 20 Japan.................................................... 56 55 55 55 55 142 395 633 755 1,009 1,488 1,717 2,007 Other Asia.......................................... 10 10 10 10 10 10 10 10 10 10 10 10 10 Total............................................ 85 85 85 85 85 172 425 663 784 1,038 1 ,518 1,727 2,017 Africa....................................................... 43 43 43 43 43 43 43 43 43 25 8 8 8 All other................................................... * * * * * * * * * * * * * Total foreign countries......................... 899 901 890 895 861 952 1,211 1,413 1,530 1,782 2,228 2,402 2,650 International and regional: International....................................... 17 115 115 115 115 115 126 126 126 126 126 126 Latin American regional................. 25 25 26 26 27 27 28 28 29 29 30 30 31 Total............................................ 25 42 141 141 142 142 143 154 155 155 156 156 157 Grand total................................ 923 943 1,031 | 1,036 1,003 1,095 1,354 1,567 1,685 1,937 2,383 2,558 2,807 Note.—Data represent estimated official and private holdings of mar- year, and are based on benchmark surveys of holdings and regular monthly ketable U.S. Govt, securities with an original maturity of more than 1 reports of securities transactions (see Table 16). 12. NONMARKETABLE U.S. TREASURY BONDS AND NOTES ISSUED TO OFFICIAL INSTITUTIONS OF FOREIGN COUNTRIES (In millions of dollars or dollar equivalent) Payable in dollars Payable in foreign currencies End of period Total Total Bel­ Can­ Ger­ Italy 2 Korea Tai­ Thai­ Total Ger­ Italy Switz­ gium ada 1 many wan land many 3 erland 196 9 4 3,181 1,431 32 1,129 135 15 20 100 4 1,750 4 1,084 541 197 0 3,563 2,480 32 2,289 25 15 20 100 1.083 542 541 1971—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 A J J M u u p l n a y r y e . . 5 3 6 3 8 , , , , 5 5 5 5 6 9 9 9 3 2 2 2 2 2 7 5 , , , , 4 4 4 4 8 8 8 8 0 0 0 0 3 3 3 3 2 2 2 2 2 2 2 2 , , , , 2 2 2 2 8 8 8 8 9 9 9 9 3 5 , , 0 0 0 0 0 0 2 2 2 2 5 5 5 5 1 1 1 1 5 5 5 5 2 2 2 2 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 5 1 1 1 1 , , . , 1 1 1 0 1 1 1 8 1 1 1 3 5 5 5 5 4 4 4 4 2 2 2 2 5 5 5 5 5 4 6 6 6 1 9 9 9 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 Oct.. 9,195 7,479 32 2,289 5,000 23 15 20 100 1.716 542 1.174 Nov. 9,271 7,554 32 2,365 5,000 22 15 20 100 1.716 542 1.174 Dec. 6 9,657 7,829 32 2,640 5,000 22 15 20 100 ^ 1,827 612 1.215 1972—Jan.. 9,658 7,829 32 2,640 5,000 22 15 20 100 1,828 612 1.216 Feb. 9,658 7,829 32 2,640 5,000 22 15 20 100 1,828 612 1,216 1 Includes bonds issued in 1964 to the Government of Canada in connec­ 4 Includes an increase in dollar value of $84 million resulting from tion with transactions under the Columbia River treaty. Amounts out­ revaluation of the German mark in Oct. 1969. standing end of 1967 through Oct. 1968, $114 million; Nov. 1968 through 5 Increase in valuation resulted from redemption of outstanding Swiss Sept. 1969, $84 million; Oct. 1969 through Sept. 1970, $54 million; and franc securities at old exchange rate and reissue of securities at new ex­ Oct. 1970 through Oct. 1971, $24 million. change rate with same maturity dates, at time of revaluation of Swiss 2 Bonds issued to the Government of Italy in connection with mili­ franc. The new issues include some certificates of indebtedness issued to tary purchases in the United States. replace notes which were within a year of maturity. 3 In addition, nonmarketable U.S. Treasury notes amounting to $125 6 Includes $106 million increase in dollar value of foreign currency million equivalent were issued to a group of German commercial banks in obligations revalued to reflect market exchange rates as of Dec. 31, 1971. June 1968. The dollar value of these notes was increased by $10 million in Dollar costs of repayment will be subject to negotiation as to settlement Oct. 1969 and by $18 million as of Dec. 31, 1971. terms after prospective action on devaluation of the dollar. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 84 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1972 13. SHORT-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES, BY COUNTRY (End of period. Amounts outstanding; in millions of dollars) 1970 1971 1972 Area and country Dec.r Mayr Juner July r Aug.r Sept.r Oct.r Nov. Dec.* p Jan .p Europe: Austria........................................................... 6 6 5 5 8 5 4 10 11 11 8 Belgium-Luxembourg................................ 50 73 58 48 95 60 53 63 57 57 71 Denmark....................................................... 40 54 51 46 47 47 50 48 49 49 50 Finland........................................................... 66 139 133 129 117 114 113 116 135 135 137 France............................................................ 113 120 106 124 155 148 132 179 266 267 311 Germany....................................................... 186 358 250 231 259 252 197 227 240 235 202 Greece............................................................ 26 24 22 21 22 21 24 23 30 30 30 Italy................................................................ 101 131 120 133 140 130 114 139 155 161 166 Netherlands................................................... 61 85 87 84 92 82 70 90 105 105 92 54 64 67 61 71 68 66 66 65 67 72 Portugal......................................................... 11 20 18 13 11 12 10 12 12 12 14 Spain............................................................... 52 70 61 64 66 62 58 68 70 70 83 Sweden........................................................... 97 129 135 138 117 116 113 120 118 118 125 Switzerland................................................... 100 163 148 162 253 145 136 143 145 145 147 Turkey........................................................... 9 30 14 11 26 20 4 3 3 3 4 United Kingdom......................................... 379 819 550 499 804 454 409 535 565 564 535 Yugoslavia.................................................... 35 36 37 38 37 29 27 22 19 19 20 Other Western Europe............................... 13 15 17 18 16 16 16 11 12 12 13 U.S.S.R.......................................................... 3 2 2 2 2 2 4 10 28 28 33 Other Eastern Europe................................ 45 50 44 48 37 39 33 33 37 37 44 1,449 2,389 1,927 1,876 2,375 1,821 1,634 1,918 2,121 2,124 2,157 Canada............................................................... 1,085 1,021 1,003 980 994 1,128 1,165 1,171 1,580 1,581 1,542 Latin America: Argentina....................................................... 326 322 316 334 329 337 327 316 304 305 310 325 397 424 417 436 412 418 410 434 440 452 Chile............................................................... 200 158 155 156 151 143 138 142 139 139 126 Colombia....................................................... 284 294 299 315 335 353 353 378 380 380 376 Cuba............................................................... 13 13 13 13 13 13 13 13 13 13 13 P P M U a e r e n r u x u a g i . m c u .. o a .. a . . y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1 0 9 6 4 5 9 7 3 8 1 1 8 5 5 0 3 6 2 4 8 1 1 4 7 0 5 3 9 9 6 9 1 4 9 4 7 3 9 3 4 9 1 1 7 4 1 6 1 3 7 9 9 1 0 9 3 9 1 7 1 0 8 1 9 0 9 3 5 8 8 2 8 2 1 0 3 3 0 1 9 9 9 9 1 1 3 4 2 7 1 6 5 6 9 1 1 3 4 2 7 1 5 6 6 1,0 1 1 0 4 1 6 1 4 3 0 Venezuela...................................................... 283 232 230 239 249 243 251 249 268 268 271 Other Latin American republics.............. 342 313 314 309 303 319 326 337 373 374 366 Bahamas and Bermuda.............i.............. 196 274 238 286 271 265 242 264 264 262 263 Netherlands Antilles and Surinam.......... 19 20 19 18 15 17 21 20 18 18 20 Other Latin America.................................. 22 22 27 31 36 27 32 23 25 26 23 Total....................................................... 3,222 3,239 3,222 3,377 3,437 3,347 3,253 3,340 3,495 3,501 3,538 Asia: China Mainland.......................................... 2 1 1 1 1 1 1 1 1 1 1 Hong Kong................................................... 39 56 60 69 71 78 77 71 72 70 61 India............................................................... 13 20 19 18 18 20 22 17 21 21 22 Indonesia....................................................... 56 34 30 63 60 57 39 40 41 41 37 Israel............................................................... 120 112 117 123 116 125 103 132 129 129 124 Japan.............................................................. 3,890 3,607 3,502 3,224 4,085 4,047 3,738 3,888 4,295 4,296 4,149 Korea............................................................. 178 231 259 252 252 217 286 329 348 348 330 Philippines..................................................... 137 115 125 126 119 110 111 129 136 147 150 Taiwan........................................................... 95 127 130 127 123 113 105 94 109 109 123 Thailand........................................................ 109 114 116 123 127 147 145 148 173 173 175 Other.............................................................. 167 211 200 203 239 249 235 226 252 252 237 Total....................................................... 4,807 4,629 4,559 4,329 5,211 5,163 4,862 5,074 5,576 5,586 5,407 Africa: Congo (Kinshasa)........................................ 4 6 6 18 22 21 22 21 21 21 21 Morocco........................................................ 6 6 5 6 6 5 5 4 4 4 4 South Africa................................................. 77 103 98 131 137 144 146 152 154 158 163 U.A.R. (Egypt)............................................ 13 16 14 12 11 12 11 9 10 10 11 Other.............................................................. 79 104 111 109 111 110 105 94 103 103 95 Total....................................................... 180 235 235 276 288 291 289 281 293 296 294 Other countries: Australia....................................................... 64 81 94 105 118 134 140 140 159 159 162 All other........................................................ 16 17 20 21 22 23 22 24 27 27 31 Total....................................................... 80 98 114 126 140 158 162 164 186 186 193 Total foreign countries.................................. 10,823 11,611 11,059 10,963 12,445 11,909 11,365 11,948 13,251 13,275 13,130 International and regional............................ 3 2 3 3 2 3 3 4 3 3 3 Grand total........................................... 10,826 11,613 11,062 10,966 12,447 11,912 11,368 11,952 13,254 13,278 13,134 1 Data in the two columns shown for this date differ because of changes on demand or with a contractual maturity of not more than 1 year: loans in reporting coverage. Figures in the first column are comparable in made to, and acceptances made for, foreigners; drafts drawn against coverage with those shown for the preceding date; figures in the second foreigners, where collection is being made by banks and bankers for column are comparable with those shown for the following date. their own account or for account of their customers in the United States; and foreign currency balances held abroad by banks and bankers and Note.—Short-term claims are principally the following items payable their customers in the United States. Excludes foreign currencies held by U.S. monetary authorities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ 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 End of period Total Total Total O in t f i s f o L t i i n c t o i s u a a ­ l ns t B o a — nks1 Others C s t t o o i i a o n u l n l n g t e d ­ s c ­ ­ f A e o o m a i c r f g n c a n a f c e d o c e e p c e r r s s t ­ t ­ . Other Total w D e i i e t g h p n o e f s r o i s t r s ­ g c F a n o u c o n o a v r r d i n m t e t , i c i e f l g s e i . s e ­ n , ­ Other paper 1969.............. 9,667 9,151 3,278 262 1,943 1,073 2,015 3,202 656 516 352 89 74 1970r........... 10,826 10,175 3,051 119 1,720 1,212 2,389 3,985 750 651 393 92 166 1971—Jan.r. 10,431 9,924 2,860 110 1,575 1,175 2,363 3,969 732 506 308 79 120 Feb.'. 10,576 10,040 2,949 88 1,594 1,267 2,353 3,990 749 535 334 111 90 Mar.r 10,706 10,142 3,002 100 1,598 1,304 2,335 4,053 752 564 365 102 96 Apr.r 10,768 10,234 3,110 107 1,754 1,250 2,279 4,127 718 534 339 92 103 May.1 11,613 10,977 3,377 156 1,929 1,293 2,349 4,177 1,074 636 449 78 109 Juner 11,062 10,497 3,405 147 1,969 1,288 2,378 3,993 721 565 374 102 89 July r. 10,966 10,427 3,563 200 2,051 1,312 2,364 3,682 818 539 382 62 94 Aug.r 12,447 11,814 4,294 191 2,682 1,421 2,357 4,162 1,001 633 497 46 90 Sept.r 11,912 11,230 3,835 188 2,236 1,410 2,372 4,052 972 682 481 104 97 Oct.r. 11,368 10,672 3,520 135 2,056 1,329 2,307 3,877 969 696 473 111 112 Nov.. 11,952 11,280 4,028 167 2,431 1,430 2,306 3,901 1,046 671 484 89 99 Dec. 2 /13,254 12,370 4,533 222 2,628 1,684 2,473 4,260 1,104 884 591 119 174 \13,278 12,394 3,988 222 2,098 1,679 2,475 4,270 1,650 884 591 119 174 1972—Jan.*. 13,134 12,374 3,907 208 2,063 1,636 2,473 4,251 1,743 760 518 93 149 1 Excludes central banks which are included with “Official institutions.” branches which were previously reported as “Loans” are included in 2 Data on second line differ from those on first line because (a) those “Other short-term claims”; and (b)a number of reporting banks are included claims of U.S. banks on their foreign branches and those claims of U.S in the series for the first time. agencies and branches of foreign banks on their head offices and foreign 15. LONG-TERM CLAIMS ON FOREIGNERS REPORTED BY BANKS IN THE UNITED STATES (Amounts outstanding; in millions of dollars) Type Country or area Payable in dollars E pe n r d i o o d f Total Loans to— O lo t n h g e ­ r P c fo a u y r r i e r n a i e b g n l n e ­ U K d n i o n i m t g ed ­ E O u t r h o e p r e Canada A L m a e t r i i n ca Japan O A t s h i e a r co o u A t n h l t e l r r ies Official Other term cies Total institu­ Banks1 foreign­ claims tions ers 1969................... 3,250 2,806 502 209 2,096 426 18 67 411 408 1,329 88 568 378 1970................... 3,075 2,698 504 236 1,958 352 25 71 411 312 1,325 115 548 292 1971—Jan.r... 2,968 2,621 485 213 1,923 323 24 70 412 278 1,287 117 523 280 Feb.*\.. 2,964 2,649 484 213 1,952 289 26 77 420 266 1,264 121 521 295 Mar.r .. 3,050 2,744 501 226 2,017 277 30 111 424 268 1,277 125 548 297 Apr.r... 3,088 2,783 504 227 2,053 271 33 117 439 275 1,279 120 554 304 Mayr... 3,252 2,940 523 251 2,167 279 32 107 498 277 1,269 208 548 343 Juner... 3,223 2,919 475 241 2,203 278 26 112 519 266 1,234 225 514 353 July'. .. 3,294 2,992 489 253 2,250 282 20 118 530 266 1,277 219 515 370 Aug.r .. 3,393 3,090 513 265 2,311 276 28 120 546 259 1,337 221 539 371 Sept.r .. 3,440 3,121 514 269 2,338 291 28 126 570 264 1,351 225 536 366 Oct........ 3,494 3,181 533 266 2,382 286 26 127 580 261 1,323 240 565 397 Nov. . .. 3,537 3,237 555 282 2,401 276 23 138 586 244 1,357 240 564 407 Dec.*... 3,616 3,319 563 309 2,447 275 22 128 590 219 1,435 246 571 426 1972—Jan.*... 3,640 3,344 563 307 2,474 272 24 132 581 238 1,437 241 583 427 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. □ MARCH 1972 16. PURCHASES AND SALES BY FOREIGNERS OF LONG-TERM SECURITIES, BY TYPE (In millions of dollars) U.S. corporate Marketable U.S. Govt, bonds and notes 1 securities 2 Foreign bonds Foreign stocks Net purchases or sales Period Total I a n n t d l. Foreign c P ha u s r e ­ s Sales c N ha s e a s t l e e p s s u o r r ­ c P ha u s r e ­ s Sales c N ha s e a s t e le p s s u o r r ­ c P ha u s r e ­ s Sales c N h e s a t a s l e e p s s u o r r ­ regional Total Official Other 1969............................... -45 11 -56 -115 59 15,483 12,795 2,688 1,552 2,581 -1,029 1,519 2,037 -517 1970............................... 56 -25 82 -41 123 11,426 9,844 1,582 1,490 2,441 -951 1,033 r998 r35 1971®............................. 1,672 130 1,542 1,661 -119 14,523 13,134 1,389 1,689 2,567 -879 1,385 1,431 -46 1971—Jan..................... 37 -1 38 -8 46 1,242 1,022 220 116 424 -307 90 95 -5 Feb.................... 19 17 2 5 -3 1,516 1,411 105 126 107 19 68 111 -44 Apr.................... 88 5 99 * -11 5 * -11 4 1 1 , , 4 3 1 8 1 3 1 1 , , 3 4 1 1 4 2 -2 9 9 7 1 1 7 7 6 4 2 1 3 9 4 0 — -6 1 0 4 11 85 7 1 1 2 7 1 9 - - 3 6 6 3 May................... -33 1 -33 -33 1,163 1,126 37 118 218 -100 94 120 -26 June.r............... 92 * 91 87 4 1,004 1,019 -15 139 239 -100 98 130 -31 July................... 260 1 259 253 6 1,038 1,002 36 112 137 -26 102 144 -42 Aug.r................ 212 11 202 238 -36 1,152 1,013 139 110 313 -203 124 102 22 Sept................... 118 1 117 145 -28 1,043 795 249 131 138 -7 118 96 22 252 * 252 257 -5 965 972 -7 163 257 -95 157 104 52 Nov.................... 446 1 445 474 -29 940 845 94 138 135 3 137 76 61 Dec.®................. 175 1 175 209 -34 1,664 1,202 462 185 174 11 195 151 44 1972—Jan.®................. 248 1 247 305 -57 1,531 1,264 267 127 423 -296 189 169 20 1 Excludes nonmarketable U.S. Treasury bonds and notes issued to Also includes issues of new debt securities sold abroad by U.S. corpora­ official institutions of foreign countries; see Table 12. tions organized to finance direct investments abroad. 2 Includes State and local govt, securities, and securities of U.S. Govt, Note.—Statistics include transactions of international and regional agencies and corporations that are not guaranteed by the United States. organizations. 17. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE STOCKS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r in ica Asia Africa co O u t n h t e ri r es r I e n g t i l o . n & al 1969....................... 1,487 150 216 189 490 -245 295 1,094 125 136 90 7 -1 36 1970........................ 626 58 195 128 110 -33 24 482 -9 47 85 — 1 1 22 1971®..................... 730 86 131 219 166 -50 71 624 -93 39 108 * -2 54 1971—Jan............. 130 -13 27 14 26 7 46 107 11 6 -3 * _ | 11 Feb............ -32 -23 28 9 -6 -23 21 7 -34 -5 * * * * J A J A M u u u p l n a g y r r e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - -1 2 - - 7 1 5 4 1 6 9 0 -2 1 1 6 9 8 3 2 0 -1 - 1 6 0 1 7 3 * 3 1 1 1 8 5 3 2 8 2 - - 1 2 - 2 1 4 7 0 4 9 0 - - - - 3 1 1 1 -6 1 3 9 8 6 - - 1 2 - - - - 7 3 8 8 3 4 - - - 2 1 5 2 3 7 9 4 8 4 4 - - - 1 1 2 - 1 7 1 7 4 1 1 - - 1 1 1 4 4 1 3 2 8 1 1 1 1 5 9 7 6 1 — * * * * 1 — * * * * * 1 - 1 2 6 7 6 4 * N S O e o c p t v . t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 1 4 5 7 5 * 24 9 8 - - 3 9 4 3 22 9 2 38 4 1 -3 - 1 1 0 1 2 1 0 7 * - 1 2 4 3 1 2 2 - - 1 2 1 1 4 0 - -3 1 8 7 7 4 6 5 * * * — * 1 4 2 7 Dec.®........ 480 66 51 76 101 67 31 392 2 49 39 * * -2 1972—Jan.®........ 234 33 30 60 93 -1 -20 194 -4 5 27 * * 12 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 87 18. NET PURCHASES OR SALES BY FOREIGNERS OF U.S. CORPORATE BONDS, BY COUNTRY (In millions of dollars) Period Total France m G a e n r y ­ N la e n th d e s r­Sw la i n tz d er­ K U in n g i d te o d m E O u t r h o e p r e E T u o ro ta p l e Canada A L m a e t r i i n ca Asia Africa co O u t n h t e ri r es I r n e t g l. i o a n n a d l 1969....................... 1,202 97 200 14 176 251 83 822 32 14 -11 -1 10 336 1970....................... 956 35 48 37 134 118 91 464 128 25 28 I -12 324 1971^..................... 659 15 35 -1 171 327 39 586 37 19 -2 * -21 39 1971—J F a e n b . . . . . . . . . . . . . . . . . . . . . . . . . 1 8 3 9 7 4 • -6 3 2 * 1 1 5 6 21 2 39 * 8 1 5 2 - 2 4 8 -4 1 * 1 * « -12 * 5 6 2 5 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 J M un ay e . .. . . . . . . . . . . . . . . . . . - 2 4 7 - - 1 1 _ 2 7 l * * - - 5 2 - 1 4 9 -6* - 3 8 3 11 * 3 2 - - 1 3 * * - - 2 2 - -3 6 A Ju u l g y . . . . . . . . . . . . . . . . . . . . . . . 4 6 0 0 - -3 2 — — 1 1 -1 1 * 3 4 2 9 0 -3 1 4 2 2 2 -10 * 3 1 * 1 * * * * 2 1 4 7 Sept........... 94 * — 1 * 21 69 -3 86 16 5 «• * * -14 Oct............. 40 5 1 * 53 24 2 83 -8 -2 -1 * * -33 Nov........... 94 * 4 -1 42 70 6 122 7 -1 2 * -5 -31 Dec.p........ — 18 -1 -1 -2 -11 18 -6 -3 -13 * 1 * -3 1972—Jan.*, ... 33 3 2 1 -14 20 38 49 10 -2 3 * * -27 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) Intl. Total Latin Other Credit Debit Period Total and foreign Eu­ Canada Amer­ Asia Af­ coun­ End of balances balances re­ coun­ rope ica rica tries period (due to (due from gional tries foreigners) foreigners) 1969................. -1,547 66 -1,613 74 -1,128 -98 -474 -6 20 1969—Mar.............................. 553 393 1970r............... -915 -254 -662 50 -586 -11 -129 -6 20 566 397 1971^............... -925 -310 -614 34 -286 -53 -345 3 32 467 297 434 278 1971—Jan....... -312 —197 -116 2 -90 -1 -29 * 2 Feb___ -24 -4 -20 -24 27 4 -29 * 1 368 220 A M M p a a r r y _ - . - _ - _ . - . - -1 1 -5 2 2 0 2 6 -4 1 6 1 4 -1 - -6 7 3 1 7 0 -3 -4 4 6 - - 6 3 2 2 4 9 -1 1 3 1 5 - - - 4 7 5 9 2 4 — * * 1 2 1 1 2 3 3 9 3 4 1 4 9 2 2 1 8 0 8 1 3 2 Juner.. -132 13 -145 -3 -93 5 -72 14 July.... -67 7 -74 -16 -6 -2 -53 * 2 511 314 Aug.r.. -180 -152 -29 23 -23 -16 -14 1 1 419 300 Sept---- 15 8 6 1 -7 3 8 * 1 333 320 Oct....... -43 32 -75 22 -111 -n 24 1 2 Dec.p........................... 311 312 Nov---- 64 11 53 37 32 -28 8 1 3 Dec.p. . 55 2 53 23 52 -9 -11 -4 2 1972—Jan.?... -276 -242 -34 10 -23 -31 7 * 3 mo N n o ey te d .— eb D it a b t a a l a r n e c p e r s e s a e p n p t e t a h r e in g m o o n n e t y h e c r b e o d o i k t s b o al f a r n e c p e o s r t a in nd g 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. □ MARCH 1972 21a. ASSETS OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Location and currency form Month-end Total Other Offi­ Non­ Other Parent branches Other cial bank Total bank Other Total of banks insti­ for­ parent tutions eigners bank IN ALL FOREIGN COUNTRIES Total, all currencies.......................... 1969—Dec.. 36,468 15,380 13,660 1,720 20,145 3,524 9,756 537 6,327 944 1970—Oct.. 44.099 11,467 9,274 2,193 31.337 6,048 14,538 544 10,217 1,295 Nov.. 45,011 10,344 8,003 2,340 33,278 6,372 15.419 692 10,794 1,390 Dec.. 47,279 9,686 7,248 2,438 36,192 6,881 16,979 695 11,636 1,402 1971—Jan.. 47,131 8,794 6,125 2,670 36,035 7,308 16,368 641 11,717 2,302 Feb.. 47,211 7,863 5,131 2,731 36,847 7,687 16,715 673 12,314 2,501 Mar.. 48,263 6,769 4,055 2,714 38,623 7,838 17,284 744 12,757 2,871 Apr.. 49,419 5,047 2,511 2,536 39,902 8,468 17,387 746 13,301 4,471 May. 50,542 4,398 2,191 2,207 41,543 8,317 18,100 797 14,329 4,600 June. 52,705 4.853 2,661 2,191 43,266 8,924 19,042 849 14,451 4,587 July.. 52,714 4,833 2,619 2,214 43,063 8,788 18,455 1,005 14,815 4,817 Aug.. 54,828 4,092 2,036 2,056 46,348 9,126 20,725 1,128 15,360 4,388 Sept.. 56,930 5,067 2,970 2,097 48,771 9,706 22,262 1,128 15,676 3,091 Oct.. 57,444 5.854 3,649 2,204 49,526 10,153 21,885 1,158 16,331 2,064 Payable in U.S. dollars. 1969—Dec.. 29.099 15,130 13,642 1,489 13,622 1,994 8,074 349 3,205 346 1970—Oct.. 32,699 11,193 9,252 1,941 21,027 3,737 11,222 334 5,735 479 Nov.. 32,991 10,073 7,987 2,086 22,405 4,009 11,876 434 6,086 513 Dec.. 34,537 9,400 7,233 2,167 24,163 4,208 13,248 362 6,795 524 1971—Jan... 34,221 8,546 6,112 2,434 24,260 4,504 12,553 370 6,833 1,414 Feb.. 33,842 7.657 5,118 2,538 24,606 4,716 12,214 423 7,253 1.579 Mar.. 34,960 6,560 4,043 2,516 26,409 5,070 13,307 453 7,580 1,990 Apr.. 35,717 4,856 2,501 2,356 27.337 5,654 13,209 529 7,944 3,525 May. 36,037 4.193 2,172 2,020 28,264 5,534 13,815 552 8,542 3,581 June. 37,622 4,648 2,651 1,998 29,412 5,609 14,625 586 8,593 3,562 July.. 37,092 4,613 2,610 2,003 28,693 5,648 13,780 713 8,552 3,787 Aug.. 37,801 3,875 2,025 1,851 30,658 5,791 15,427 865 8,576 3,268 Sept.. 38,698 4,828 2,950 1,877 32,059 6,028 16,407 851 8,774 1,811 Oct.. 38,541 5,610 3,633 1,977 32,525 6,093 16,277 873 8,981 705 IN UNITED KINGDOM Total, all currencies......... 1969—Dec.. 24,130 11,311 10,043 1.267 12,417 1,702 6.953 289 3,473 403 1970—Oct.. 26,806 8,403 6,925 1,478 17,923 2,802 9,451 257 5,413 479 Nov.. 27,082 7,276 5,735 1,541 19,244 2,957 10,147 390 5,750 562 Dec.. 28,451 6,729 5,214 1,515 21,121 3,475 11,095 316 6,235 601 28,478 6,064 4,380 1,684 21,330 3,700 10,898 300 6,432 1,084 Feb............ 28,115 5.194 3,487 1,706 21,663 3,915 10,760 338 6,650 1,258 Mar.. 28,711 4.658 2,897 1,761 22,539 3,890 11.419 355 6,875 1,514 Apr.. 29,082 3,143 1,598 1,545 23,414 4,307 11,584 412 7,111 2,524 May. 29,952 2,746 1,401 1,345 24,627 4,218 11,957 433 8,020 2.579 June. 31,276 3,188 1,827 1,361 25,545 4,393 12,632 418 8,101 2,542 July.. 30,710 3,098 1,700 1,398 25,140 4,448 11.953 520 8,218 2,473 Aug.. 32,119 2,608 1,340 1.268 27,249 4,462 13,744 558 8,486 2,262 Sept.. 33,280 3,390 2,143 1,247 28,464 4,882 14,683 512 8,387 1,426 Oct.. 33,408 4,116 2,772 1,344 28,458 5,189 14,536 524 8,210 834 Payable in U.S. dollars. 1969—Dec.. 20,641 11,230 9,201 955 6,265 1,982 209 1970—Oct.. 21,702 8,290 13,136 1,841 7,951 3,344 276 Nov.. 21,549 7,153 14,067 1,920 8,635 3,512 328 Dec.. 22,574 6,596 15,655 2,223 9,420 4.012 323 1971—Jan... 22,478 5,950 15,710 2,483 9,129 4,099 818 Feb.. 21,924 5,102 15,849 2,541 9,043 4,266 972 Mar.. 22,576 4,566 16,791 2,657 9,750 4,384 1,219 Apr.. 22,786 3,057 17,534 3,133 9,861 4,541 2,194 May. 23,028 2,651 18,156 3,030 10,128 4,999 2,221 June. 24,228 3,098 18,918 3,231 10,674 5.013 2,211 July. 23,282 3,010 18,155 3,219 10,031 4,906 2,116 Aug.. 23,848 2,528 19,451 3,245 11,336 4.870 1,868 Sept.. 24,418 3,289 20,123 3,369 11,883 4.871 1,006 Oct.. 24,481 4,012 20,069 3,440 11,859 4,771 399 IN THE BAHAMAS Total, all currencies. 1969—Dec.. 3,044 1,538 1,293 244 1,478 951 527 28 1970—Oct.. 4,194 990 500 491 3,141 1,972 1,168 63 Nov.. 4,200 1,056 493 563 3,084 1,813 1,271 60 Dec.. 4,731 1,119 455 664 3,554 2,096 1,458 58 1971—Jan.. 4,663 1,135 396 739 3,324 1,916 1,408 205 Feb.. 4,561 1,072 283 789 3,286 1,721 1,565 203 Mar.. 4,755 879 162 718 3,605 1,994 1,611 271 Apr.. 5,245 935 169 766 3,641 1,918 1,723 669 May. 5,347 773 113 660 3,880 2,038 1,843 694 June. 5,733 839 203 635 4,212 2,317 1,895 683 July.. 6,022 890 267 623 4,403 2,337 2,066 729 Aug.. 5,925 728 139 589 4,573 2,564 2,009 624 Sept.. 6,213 855 219 636 5,010 2,906 2,104 348 Oct.. 6,586 897 246 651 5,580 2,996 2,584 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 89 21b. LIABILITIES OF FOREIGN BRANCHES OF U.S. BANKS (In millions of dollars) Claims on U.S. Claims on foreigners Total Other Offi­ Non­ Other Month-end Location and currency form Parent branches Other cial bank Total bank Other Total of banks insti­ for­ parent tutions eigners bank IN ALL FOREIGN COUNTRIES 36,468 2,615 719 1,896 32,316 3,354 20,491 1 j 856 6,614 1,537 ............1969—Dec. ...........Total, all currencies 44,103 2,661 682 1,979 39,964 5,571 23,695 3,335 7,363 1,477 ............1970—Oct. 45,017 2,478 656 1,822 40,824 5,960 23,724 3,429 7,711 1,715 47,720 2,575 716 1,859 42,746 6,372 24,820 4,180 7,374 1,949 47,131 2,508 662 1,845 42,981 6,839 24,840 4,258 7,044 1,642 ............1971—Jan. 47,210 2,376 544 1,833 43,196 7,444 23,710 4,764 7,278 1,638 .........................Feb. 48,365 2,640 559 2,080 44,069 7,507 24,175 5,006 7,381 1,556 49,419 2,529 547 1,982 45,066 8,078 24,118 5,554 7,316 1,824 50,542 2,848 726 2,122 45,891 8,134 25,039 5,216 7,502 1,802 52,705 2,565 528 2,038 48,342 8,553 26,729 5,339 7,721 1,798 52,711 3,061 477 2,584 47,934 8,345 26,545 5,373 7,670 1,716 .........................July 54,828 3,349 763 2,586 49,622 8,792 27,178 5,450 8,203 1,857 56,932 3,046 510 2,537 51,838 9,463 28,507 5,469 8,400 2,047 57,444 2,943 482 2,461 52,432 9,739 28,529 5,574 8,590 2,069 29,750 2,392 606 1,786 26,341 2,130 17,793 1 566 4,851 1,017 ............1969—Dec. ...........Payable in U.S. dollars 33,759 2,391 580 1,811 30,480 3,597 19,147 2,892 4,843 888 ............1970—Oct. 34,356 2,205 556 1,649 31,092 3,910 19,010 2,995 5,177 1,058 36,004 2,334 657 1,677 32,446 4,028 19,807 3,737 4,874 1,225 35,470 2,277 603 1,674 32,216 4,356 19,522 3,818 4,513 976 35,137 2,120 474 1,647 32,073 4,874 18,243 4,206 3,749 944 .........................Feb. 36,213 2,413 501 1,912 32,891 5,052 18,722 4,323 4,794 909 36,973 2,284 491 1,794 33,717 5,644 18,717 4,743 4,612 972 37,284 2,582 643 1,939 33,638 5,469 19,120 4,419 4,630 1,063 39,116 2,293 432 1,861 35,782 5,793 20,610 4,604 4,775 1,041 38,297 2,762 393 2,368 34,571 5,433 20,192 4,416 4,530 965 .........................July 39,449 2,939 643 2,296 35,406 5,735 20,340 4,375 3,956 1,104 40,182 2,669 389 2,280 36,340 6,203 20,990 4,407 4,741 1,173 40,701 2,578 361 2,218 36,287 6,113 20,805 4,502 4,867 1,136 IN UNITED KINGDOM 24,130 1,571 82 1,489 21,920 1,222 14,954 1,235 4,510 639 ............1969—Dec. ...........Total, all currencies 26,805 1,531 91 1,440 24,759 2,021 15,768 2,454 4,515 516 ............1970—Oct. 27,082 1,406 101 1,305 25,072 2,166 15,687 2,574 4,646 604 28,451 1,339 116 1,222 26,520 2,320 16,533 3,119 4,548 592 28,478 1,384 77 1,307 26,542 2,358 16,817 3,067 4,300 522............1971—Jan. 28,115 1,423 103 1,320 26,103 2,641 15,588 3,337 4,538 589 .........................Feb. 28,711 1,533 103 1,430 26,597 2,586 15,942 3,615 4,454 581 29,082 1,492 186 1,306 26,989 2,699 15,698 4,067 4,525 601 29,952 1,591 301 1,291 27,667 2,843 16,387 3,873 4,565 694 31,276 1,565 147 1,419 29,021 2,931 17,578 3,967 4,545 690 30,710 1,773 126 1,647 28,264 2,762 16,843 4,034 4,625 674 32,119 2,000 300 1.700 29,429 3,069 17,310 4,268 4,782 691 33,280 1,658 117 1,541 30,877 3,344 18,431 4,318 4,785 745 33,408 1,628 104 1.523 31,009 3,250 18,535 4,447 4,777 772 20,820 1,492 60 1,432 18,916 868 13,302 1,073 3,673 411 ............1969—Dec. ...........Payable in U.S. dollars 21,489 1,404 68 1,337 20,185 1,375 13,251 2,198 3,361 260............1970—Oct. 21,894 1,279 78 1,200 20,305 1,455 13,044 2,295 3,510 311 23,005 1,208 98 1,110 21,495 1,548 13,684 2,859 3,404 302 22,705 1,266 66 1,199 21,156 1,540 13,718 2,816 3,081 283 ............1971—Jan. 22,118 1,291 84 1,207 20,539 1,707 12,531 3,001 3,301 287 .........................Feb. 22,654 1,411 90 1,321 20,954 1,759 12,754 3,207 3,233 289 22,907 1,358 173 1,185 21,249 1,900 12,640 3,588 3,121 299 23,198 1,455 266 1,189 21,378 1,902 12,967 3,368 3,142 365 24,474 1,432 96 1,336 22,682 2,053 14,071 3,493 3,065 361 23,400 1,610 89 1,521 21,428 1,819 13,198 3,382 3,029 361 .........................July 24,263 1,790 238 1,552 22,095 1,900 13,445 3,501 3,249 377 24,742 1,460 59 1,401 22,882 2,126 14,160 3,555 3,041 400 24,727 1,435 49 1,387 22,875 2,095 14,079 3,660 3,041 417 V ----------- ____- IN THE BAHAMAS 3,044 293 2,718 124 1;,957 637 33 ............1969—Dec. ...........Total, all currencies 4,199 432 3,705 212 2.,706 786 62............1970—Oct. 4,204 357 3,782 278 2,543 960 65 4,731 542 4,117 435 2,863 819 72 4,664 491 4,114 705 2,568 841 59............1971—Jan. 4,561 382 4,121 840 2,452 830 58.........................Feb. 4,756 534 4,171 681 2,575 915 51 5,245 503 4,681 1,087 2,706 888 62 5,348 646 4,633 991 2,744 898 68 5,734 446 5,221 1,013 3,095 1,113 67 6,020 753 5,197 1,125 3,139 933 69 .........................July 5,925 696 5,155 1,005 3,029 1,121 74 6,216 742 5,384 931 3,385 1,069 90 6,587 648 5,830 1,083 3,555 1,191 109 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 90 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1972 22. LIABILITIES OF U.S. BANKS TO THEIR FOREIGN BRANCHES 23. 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 ties1 Wednesday ties1 plus Wednesday ties1 plus Maturity of sec.2 sec.2 liability Oct. Nov. Dec. 1966 1970 1971—Cont. J S D M u e e n a p c r e t . . . 2 2 2 3 9 8 8 0 . . . . . . . . . . . . . . . . 4 3 1 1 , , , , 0 9 4 8 5 3 7 7 1 9 6 2 J A M F M a e p n a a b r . y r . . . 2 2 2 2 2 8 9 5 5 7 . . . . . 1 1 1 1 1 3 3 1 1 2 , , , , , 8 6 0 9 3 8 0 8 4 4 5 5 6 4 6 Sept. 2 2 1 9 2 8 5 1 . . . . . 2 2 1 1 1 , , , , , 4 1 7 2 2 0 7 5 3 3 1 5 3 9 3 3 3 3 3 3 , , , , , 5 8 4 3 4 7 5 0 0 0 8 5 3 7 9 C O O a v t m d i h n l e a l e o r . t r . n e n . f . l i : o . t i g . h a . l . h l b s . o . t i . w . l . . . i . . t . i a . i . . n e . . f . . g t s . . . e . , . . . r . m . . c . . . . a . . a . . l . r . t . e . e u . . . n . p . r . . . d i . o . n . . a . . r . g . r t . . . . 1 1 . . 7 5 7 8 1 1 . . 4 7 9 3 1 1. .5 8 2 6 J S M u e n a p r e t . . 2 2 2 1 1 8 9 9 . . . 6 . . . 7 . . . . . . 4 3 3 , , , 0 1 4 5 1 6 9 2 6 J J N D A S O u u e e c o u n l p c t y g v e . t . . . . 2 2 2 2 2 3 3 6 8 5 0 4 9 0 . . . . . . . 1 1 1 9 9 7 8 0 2 0 , , , , , , , 6 2 6 4 6 1 4 6 9 3 7 2 7 6 5 3 7 9 6 2 9 O N c o t v . . 2 2 1 1 7 6 0 3 0 3 . . . . . . 2 2 2 2 2 2 , , , , , , 6 4 7 9 9 2 0 6 2 1 6 2 1 7 3 7 4 2 2 2 2 3 3 3 , , , , , , 9 4 9 3 2 1 1 6 7 2 6 5 7 7 5 5 3 4 6 7 5 2 4 3 t n t t t r h h h h d d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2 5 8 1 1 . . . . . . . 9 6 0 5 7 7 3 7 8 7 5 6 0 6 9 6 2 3 1 1 . . . . . . . 3 2 6 0 3 9 9 3 6 7 0 4 0 6 1 4 2 2 3 1 1 . . . . . . . 7 1 1 8 7 4 2 1 5 5 5 5 6 0 Dec. 27.... 4,241 1971 2 1 4 7 . . 3 3 , , 3 3 5 4 8 2 3 3 , , 3 3 5 4 8 2 9 8t t h h . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 7 2 . . 4 2 4 4 . .2 2 9 7 1968 J F a e n b . . 2 2 4 7 . . 6 5 , , 5 6 3 6 6 6 7 6 , ,6 5 6 3 6 6 Dec. 8 1. . 2 1 , , 4 8 0 6 8 7 2 1 , , 4 8 0 6 8 7 1 1 0 1t t h h. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 1 4 . . 2 2 9 5 . .2 29 4 Mar. 31. 2,858 4,358 15. 1,386 1,386 12th................................. .25 .21 .25 J M un ar e . 2 2 6 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 6, , 2 9 0 2 2 0 A M p a r y . 2 26 8 . . 2 1 , , 1 5 5 7 8 9 4 5 , , 5 1 8 6 7 6 2 2 9 2 . . 1 ,5 9 4 09 4 1,5 9 4 0 4 9 Maturities of more than 1 .78 .87 .82 Sept. 25.............. 7,104 June 30. 1,492 4,500 Dec. 31 (1/1/69) 6,039 1972 July 7. 2,189 5,197 Jan. 5.. 1,208 1 ,208 Total............................ 30.65 30.99 31.80 1969 2 1 1 4 . . 1 1 , ,8 7 8 4 0 0 4 4 , , 7 9 8 27 7 1 19 2 . . . . 1 1 , , 7 5 2 6 1 8 1 1 , , 7 5 2 6 1 8 28. 1,495 4,645 26r 1,419 1 ,419 Note.—Includes interest-bearing U.S. dollar J M un ar e . 2 2 5 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 9 3 , , 6 2 2 6 1 9 Aug. 1 4 1 . . 1 1, , 1 90 1 5 0 5 4 , , 0 2 5 9 5 6 Feb. 2 9. ., 1 1 , , 3 0 0 6 1 2 1 1 , , 3 0 0 6 1 2 d th e e p o B si a t h s a a m n a d s d a ir n e d c t o b f o r a r l o l w o i t n h g e s r o fo f r a e l i l g b n r a b n r c a h n e c s h e in s Sept. 24.............. 14,349 18. 1,376 4,562 16. 1,006 1,006 for which such deposits and direct borrowings Dec. 31.............. 12,805 25. 1,405 4,075 23. 1,068 1,068 amount to $50 million or more. Details may not add to totals due to rounding. 1 Represents gross liabilities of reporting banks to their branches in foreign countries. 2 For period Jan. 27, 1971 through Oct. 20, 1971, includes U.S. Treasury Certificates Euro­ dollar 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. 24. DEPOSITS, U.S. GOVT. SECURITIES, 25. 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 End of End of United period Deposits period Total Short­ Short­ King­ Canada U se .S cu . r G it o ie v s t 1 . Ear g m o a ld rked Deposits in te v r e m st­ Deposits in te v r e m st ­ dom ments1 ments 1 1969............... 134 7,030 12,311 1970............... 148 16,226 12,926 1968..................... 1,638 1,219 87 272 60 979 280 /1,319 952 116 174 76 610 469 1971—F M eb a . r . . . . . 2 1 0 4 1 7 2 1 0 8 , , 5 03 3 3 4 1 1 2 3 , , 9 0 8 5 1 7 \1,491 1,062 161 183 86 663 534 Apr.. . 162 22,879 13,095 1970—Dec.r___ 1,141 697 150 173 121 372 436 May. . 208 28,126 13,447 June.. 199 26,544 13,509 1971—Jan.r. . .. 1,299 861 144 177 116 520 381 July... 162 28,574 13,559 Feb. r. . .. 1,356 849 173 190 144 548 418 Aug... 122 35,914 13,821 Mar.r___ 1,469 983 165 175 145 706 383 S O e c p t t .. . . . . 1 16 3 6 5 3 3 6 8 , , 9 2 2 0 1 7 1 1 3 3 , , 8 8 1 1 9 9 A M p a r y . r r. .. . . . . . 1 1, , 5 4 5 8 1 8 9 9 3 7 8 2 1 1 7 6 8 0 2 29 0 3 0 1 16 3 1 8 6 6 2 8 2 7 4 3 3 9 0 7 Nov. . 177 39,980 13,820 Juner.. .. 1,470 926 183 240 122 634 365 Dec.. . 294 43,195 13,815 Julyr. 1,478 942 197 238 101 579 395 Aug.r---- 1,661 1,078 208 246 128 639 480 1972—Jan.... 147 44,359 13,815 Sept.r___ 1,579 983 204 285 107 519 489 Feb. .. 137 45,699 14,359 Oct.r.... 1,604 1,010 211 277 106 540 531 Nov.r___ 1,622 1,024 210 246 143 612 517 Dec.......... 1,597 1,026 219 233 120 560 564 1 Marketable U.S. Treasury bills, certificates of in­ debtedness, notes, and bonds and nonmarketable U.S. T cu r r e r a e s n u c r i y e s. securities payable in dollars and in foreign or 1 h N av e i g n o g t i a a b c l o e n a tr n a d c t o u t a h l e m r a re tu a r d i i t l y y o tr f a n n o sf t e m ra o b r l e e t f h o a re n i g 1 n y o e b a l r i g fr a o ti m on t s h e p a d y a a t b e l e o n o n w h d i e c m h a t n h d e obligation was incurred by the foreigner. Note.—Excludes deposits and U.S. Govt, securities 2 Data on the two lines for this date differ 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

MARCH 1972 □ INTL. CAPITAL TRANSACTIONS OF THE U.S. A 91 26. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (End of period. Amounts outstanding; in millions of dollars) Liabilities to foreigners Claims on foreigners Area and country 1970 1971 1970 1971 Sept. Dec.r Mar.r Juner Sept.*5 Sept.r Dec.r Mar.r June Sept.p Europe: Austria...................................... 6 8 11 12 10 9 10 10 10 13 Belgium-Luxembourg........... 66 46 47 58 60 54 47 49 61 59 Denmark.................................. 3 2 9 3 3 16 17 16 17 14 Finland..................................... 1 2 2 2 2 13 11 8 15 16 France...................................... 141 126 112 117 142 154 150 159 181 182 Germany, Fed, Rep. of........ 166 139 122 105 126 192 209 191 228 209 Greece...................................... 3 4 4 5 6 28 28 34 27 40 Italy........................................... 69 77 71 69 74 161 163 175 172 177 Netherlands............................. 124 128 115 102 85 62 62 65 74 66 Norway.................................... 6 5 4 5 5 13 16 15 14 17 Portugal.................................... 10 13 14 18 18 14 15 13 20 11 Spain......................................... 48 24 27 35 37 73 81 93 91 92 Sweden...................................... 35 34 28 31 28 25 40 53 40 37 Switzerland.............................. 185 159 122 85 100 45 47 38 62 95 Turkey...................................... 3 4 3 5 3 13 8 17 9 11 United Kingdom.................... 661 842 723 647 662 1,055 698 1,020 961 840 Yugoslavia.............................. 1 2 1 1 1 17 17 16 16 21 Other Western Europe......... 21 11 1 2 2 9 9 12 11 14 Eastern Europe....................... 5 4 4 3 3 24 24 16 16 16 Total................................. 1,556 1,628 1,422 1,304 1,366 1,977 1,652 1,997 2,027 1,928 Canada.......................................... 215 221 206 193 178 703 751 715 708 783 Latin America: Argentina................................. 10 11 14 17 19 61 61 65 66 66 Brazil........................................ 17 19 15 17 13 107 120 105 118 129 Chile.......................................... 11 11 13 8 14 42 48 40 44 48 Colombia.................................. 6 * 6 * 6* 6 * 6 * 37 1 37 1 36 1 31 1 1 40 1 28 22 20 20 21 149 156 143 151 146 5 5 6 6 6 18 18 21 17 20 Peru........................................... 6 4 4 4 5 29 36 35 36 34 Uruguay................................... 5 4 4 4 4 5 6 7 6 6 V O e th n e e r z u L e .A la . . .. r . e ... p .. u .. b ... l . i . c .. s .. . . . . . . . . . . . . . . . . . . . . . . . . . 3154 I ! i 3178 2 1 9 7 2 1 9 7 3 1 3 4 6 9 8 7 9 6 9 7 9 6 5 9 9 6 6 9 1 7 0 3 4 Bahamas and Bermuda........ 94 |! 154 158 152 228 153 160 210 263 340 Neth. Antilles and Surinam. 24 i 23 5 7 4 10 9 8 9 9 Other Latin America............. 5 i! 6 5 6 8 23 29 21 25 22 Total................................. 260 320 296 293 376 799 846 855 931 1,036 Asia: Hong Kong............................. 8 9 8 8 9 19 17 19 25 25 41 38 25 22 26 42 34 39 39 1 36 7 9 5 6 11 14 21 20 21 | 24 Israel......................................... 21 24 28 19 21 21 23 24 25 i 21 Japan........................................ 135 144 165 158 177 314 323 349 372 j 411 1 1 11 10 10 29 42 50 54 1 52 7 7 7 7 6 32 30 31 56 43 Taiwan...................................... 8 9 10 11 17 27 33 32 38 43 Thailand................................... 4 4 4 3 4 13 11 12 13 16 Other Asia............................... 47 50 59 122 140 145 145 155 159 201 Total................................. 281 296 322 366 420 657 678 730 802 872 Africa: Congo (Kinshasa).................. 15 2 2 2 2 4 3 5 6 4 South Africa............................ 24 34 31 45 45 29 30 32 38 38 U.A.R. (Egypt)....................... 2 1 2 1 1 11 9 10 9 9 Other Africa............................ 51 41 19 33 32 48 50 53 67 70 Total................................. 90 78 54 82 80 92 92 100 120 122 Other countries: Australia.................................. 74 75 81 81 68 70 80 86 82 85 All other.................................. 5 7 8 8 9 15 15 13 17 24 Total................................. 79 82 89 89 77 84 94 99 99 109 International and regional.. .. * * * * 1 1 1 3 4 4 2,482 2,626 2,389 2,327 2,498 4,314 4,114 4,499 4,692 4,854 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 92 INTL. CAPITAL TRANSACTIONS OF THE U.S. □ MARCH 1972 27. SHORT-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS, BY TYPE (Amounts outstanding; in millions of dollars) Liabilities Claims Payable in foreign currencies End of period Total Pay in able P fo a r y i e n a i b g l n e Total Pay in able Deposits with dollars currencies dollars banks abroad in reporter’s Other name 1967—Sept....................... 1,353 1,029 324 2,555 2,116 192 246 Dec.1..................... \ ( 1 1 , ,3 3 7 8 1 6 1 1 , , 0 0 3 2 9 7 3 3 4 4 7 3 2 3, , 0 9 1 4 1 6 2 2 , , 5 5 9 2 9 9 2 20 0 1 3 2 2 0 1 9 6 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 r.................. \ ( 2 1 , , 0 7 9 8 5 6 1 1 , , 3 6 9 5 9 4 4 3 4 8 1 7 4 3 , , 1 7 2 1 4 0 3 3 , , 4 1 9 2 5 4 2 2 2 4 1 4 3 38 6 5 5 1970—Mar.r.................... 2,204 1,724 480 4,238 3,699 219 320 Juner..................... 2,357 1,843 513 4,417 3,825 234 358 Sept.r.................... 2,482 1,956 526 4,314 3,708 301 306 Dec.r..................... 2,626 2,159 467 4,114 3,532 234 349 1971—Mar.r.................... 2,389 1,957 432 4,499 3,890 232 377 Juner..................... 2,327 1,919 408 4,692 4,037 303 352 Sept.**..................... 2,498 2,082 416 4,854 4,146 377 332 1 Data on the two lines shown for this date differ preceding date; figures on the second line are compabecause of changes in reporting coverage. Figures on rable with those shown for the following date, the first line are comparable with those shown for the 28. LONG-TERM LIABILITIES TO AND CLAIMS ON FOREIGNERS REPORTED BY NONBANKING CONCERNS (Amounts outstanding; in millions of dollars) Claims End of period Total Country or area liabilities Total K U in n g i d te o d m E O u t r h o e p r e Canada Brazil Mexico A O L m a t e h t r i e i n c r a Japan O A t s h i e a r Africa o A th ll er 1967—Sept.......................... 411 1,452 40 212 309 212 84 283 109 103 87 13 Dec.1....................... { 414 1 1 , , 5 5 3 7 7 0 4 4 3 3 2 2 5 6 7 3 3 3 1 2( 1 2 428 2 2 1 1 2 2 9 8 1 5 2 2 7 7 8 4 1 1 2 2 8 8 1 1 1 3 7 2 8 89 9 1 1 6 6 1968—Mar.......................... 582 1 ,536 41 265 330 206 61 256 128 145 84 21 June......................... 747 1,568 32 288 345 205 67 251 129 134 83 33 Sept.......................... 767 1,625 43 313 376 198 62 251 126 142 82 32 Dec........................... 1,129 1,790 147 306 419 194 73 230 128 171 83 38 1969—Mar.......................... 1,285 1,872 175 342 432 194 75 222 126 191 72 43 June......................... 1,325 1 ,952 168 368 447 195 76 216 142 229 72 40 Sept.......................... 1,418 1,965 167 369 465 179 70 213 143 246 71 42 Dec.1 r.................... ( < 2 1 , , 3 7 3 2 1 5 2 2 , , 2 3 1 6 5 0 1 1 5 5 2 2 4 4 3 4 3 2 5 4 6 9 2 6 1 1 7 77 2 7 7 3 7 4 3 1 8 6 8 1 1 4 4 1 2 2 2 7 4 1 9 6 75 9 4 4 6 2 1970—Mar.r...................... 2,385 2,741 159 735 573 181 74 454 158 288 71 47 Juner....................... 2,613 2,753 161 712 580 177 65 474 166 288 76 54 Sept. r...................... 2,813 2,882 157 720 620 180 63 583 144 284 73 58 Dec.r....................... 3,129 2,946 146 708 669 183 60 614 140 292 71 64 1971—Mar.r....................... 3,196 2,979 154 688 670 182 63 611 161 302 77 72 June r....................... 3,190 2,990 151 692 677 180 64 625 138 313 75 76 Sept.**....................... 2,922 2,899 135 675 666 175 63 583 133 319 76 74 1 Data on the two lines shown for this date differ because of changes shown for the preceding date; figures on the second line are comparable in reporting coverage. Figures on the first line are comparable with those with those shown for the following date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ MONEY RATES A 93 FOREIGN EXCHANGE RATES (In cents per unit of foreign currency) Period Ar ( g p e e n so ti ) na A (d u o st ll r a a r l ) ia (s A ch u i s ll t i r n ia g) B (f e r l a g n iu c m ) C (d a o n ll a a d r a ) C (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 l k an k d a) F (f r r a a n n c c e ) 196 8 .28473 111.25 3.8675 2.0026 92.801 16.678 13.362 23.761 20.191 196 9 .28492 111.10 3.8654 1.9942 92.855 16.741 13.299 23.774 4 19.302 197 0 126.589 111.36 3.8659 2.0139 2 95.802 16.774 13.334 23.742 18.087 197 1 22.502 113.61 4.0009 2.0598 99.021 16.800 13.508 23.758 18.148 1971—Jan.. 24.829 111.82 3.8665 2.0145 98.831 16.792 13.361 23.722 18.119 Feb. 24.831 112.38 3.8651 2.0148 99.261 16.792 13.359 23.722 18.122 Mar. 24.835 112.42 3.8670 2.0145 99.367 16.792 13.368 23.722 18.129 Apr., 24.673 112.38 3.8696 2.0144 99.237 16.792 13.353 23.727 18.126 May, 24.156 112.42 3 3.9676 2.0164 99.138 16.792 13.334 23.735 18.094 June, 23.602 112.43 4.0021 2.0109 97.913 16.792 13.342 23.735 18.092 July. 22.642 112.42 4.0040 2.0133 97.912 16.792 13.334 23.735 18.136 Aug. 20.757 113.17 4.0264 2.0351 98.670 16.792 13.435 23.735 18.130 Sept. 19.919 114.78 4.0844 2.0921 98.717 16.839 13.672 23.830 18.112 Oct., 19.923 115.76 4.1261 2.1353 99.537 16.820 13.768 23.800 18.073 Nov. 19.925 115.89 4.1280 2.1572 99.607 16.806 13.773 23.773 18.096 Dec. 19.928 117.48 4.2041 2.1986 100.067 16.797 13.994 23.852 18.549 1972—Jan.. 19.960 119.10 4.2516 2.2514 99.411 16.653 14.219 24.077 19.329 Feb.. 119.960 119.10 4.3108 2.2810 99.528 16.650 14.306 24.099 19.650 Period ( G D m e e r u a m t r s k a c n ) h y e (r I u n p d e ia e) ( I p re o l u a n n d d ) ( I l t i a r l a y ) J ( a y p e a n n ) M (d a o la ll y a s r i ) a M (p e e x s i o c ) o ( e g N r u la i e l n t d h d e ­ s r) 196 8 25.048 13.269 239.35 .16042 .27735 32.591 8.0056 27.626 196 9 5 25.491 13.230 239.01 .15940 .27903 32.623 8.0056 27.592 197 0 27.424 13.233 239.59 .15945 .27921 32.396 8.0056 27.651 197 1 28.768 13.338 244.42 .16174 .28779 32.989 8.0056 28.650 1971—Jan.. 27.496 13.269 240.58 .16045 .27932 32.515 8.0056 27.820 Feb. 27.594 13.311 241.78 .16036 .27969 32.615 8.0056 27.814 Mar. 27.538 13.304 241.87 .16063 .27971 32.616 8.0056 27.816 Apr., 27.516 13.315 241.79 .16070 .27972 32.604 8.0056 27.776 May, 6 28.144 13.330 241.87 .16059 .27979 32.642 8.0056 628.135 June, 28.474 13.346 241.87 .16009 .27979 32.720 8.0056 28.065 July. 28.728 13.347 241.85 .16048 .27980 32.733 8.0056 28.097 Aug. 29.277 13.345 243.46 .16157 .28113 32.737 8.0056 28.693 Sept. 29.794 13.401 246.94 .16292 .29583 33.354 8.0056 29.308 Oct.. 30.065 13.349 249.06 .16332 .30202 33.573 8.0056 29.772 Nov. 30.005 13.353 249.33 .16324 .30418 33.627 8.0056 30.006 Dec. 30.593 13.388 252.66 .16652 .31249 34.135 8.0056 30.503 1972—Jan.. 30.956 13.415 257.05 .16923 .31978 34.737 8.0002 31.072 Feb.. 31.390 13.638 260.37 .17036 .32769 35.080 8.0000 31.468 United Period Z (d e N o a e l l l a w a n r) d N (k o r r o w n a e y ) P (e o s r c t u u d g o a ) l A ( S r o a fr n u i d t c h a ) (p S e p s a e i t n a) S (k w ro ed n e a n ) ( e S f r w r l a a i n n tz c d ­ ) (p K d o i o u n m n g d ­ ) 1968........................................................................................ 111.37 14.000 3.4864 139.10 1.4272 19.349 23.169 239.35 1969........................................................................................ 111.21 13.997 3.5013 138.90 1.4266 19.342 23.186 239.01 111.48 13.992 3.4978 139.24 1.4280 19.282 23.199 239.59 113.71 14.205 3.5456 140.29 1.4383 19.592 24.325 244.42 1971—Jan.............................................................................. 111.94 14.003 3.5000 139.81 1.4290 19.365 23.227 240.58 Feb............................................................................. 112.50 14.001 3.5031 140.51 1.4290 19.332 23.266 241.78 Mar............................................................................ 112.54 14.010 3.5019 140.56 1.4290 19.369 23.254 241.87 Apr............................................................................. 112.50 14.028 3.5000 140.51 1.4291 19.368 23.263 241.79 112.54 13.556 3.5013 140.56 1.4291 19.357 724.253 241.87 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 Oct.............................................................................. 115.88 14.599 3.6275 140.43 8 1.4457 19.914 25.157 249.06 Nov............................................................................ 116.01 14.578 3.6342 140.40 1.4533 19.989 25.104 249.33 Dec............................................................................. 117.31 14.816 3.6494 137.22 1.4822 20.434 25.615 252.66 1972—Jan.............................................................................. 119.36 14.913 3.6474 131.27 1.5162 20.731 25.693 257.09 Feb............................................................................. 119.39 15.029 3.6690 132.98 1.5170 20.858 25.890 260.37 1 A new Argentine peso, equal to 100 old pesos, was introduced on 7 Effective May 10, 1971, the Swiss franc was revalued to 4.08 per Jan. 1, 1970. Since Apr. 6, 1971, the official exchange rate is set daily by U.S. dollar. the Government of Argentina. Average for Feb. 1-27, 1972. 8 Effective Oct. 20, 1971, the Spanish peseta was revalued to 68.455 2 On June 1, 1970, the Canadian Government announced that, for the per U.S. dollar. time being, Canada will not maintain the exchange rate of the Canadian dollar within the margins required by IMF rules. Note.—Effective Aug. 16, 1971, the U.S. dollar convertibility to gold 3 Effective May 9, 1971, the Austrian schilling was revalued to 24.75 was suspended; as from that day foreign central banks did not have to per U.S. dollar. support the dollar rate in order to keep it within IMF limits. 4 Effective Aug. 10, 1969, the French franc was devalued from 4.94 to During December 1971, certain countries established central rates 5.55 francs per U.S. dollar. against the U.S. dollar in place of former IMF parities. 5 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,” 6 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 94 MONEY RATES □ MARCH 1972 CENTRAL BANK RATES FOR DISCOUNTS AND ADVANCES TO COMMERCIAL BANKS (Per cent per annum) Changes during the last 12 months Rate as of Jan. 31, 1971 Rate Country 1971 1972 as of Feb. 29 Per Month 1972 cent effective Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 6.0 Dec. 1957 18.0 18.0 5.0 Jan. 1970 5.0 6.5 Dec. 1970 6.0 5.5 5.0 4.5 4.5 20.0 July 1969 20.0 5.25 Feb. 1971 4.75 4.75 6.5 Jan. 1970 6.5 Chile.......................................... 14.0 July 1969 8.0 7.0 7.0 8.0 May 1963 8.0 4.0 4.0 8.0 Jan. 1971 7.5 7.0 7.0 8.0 Jan. 1970 8.0 5.0 May 1962 5.0 4.0 Aug. 1964 4.0 6.50 Aug. 1970 6.50 7.0 Apr. 1962 8.50 7.75 7.’ 75 6.5 Jan. 1971 6.75 6.5 6.0 6.0 Germany Fed Rep. of........ 6.0 Dec. 1970 5.0 4.5 4.0 3.0 3.0 Ghana .................................... 5.5 Mar. 1968 8.0 8.0 Greece ................................ 6.5 Sept. 1969 6.5 Honduras ..................... 4.0 Feb. 1966 4.0 Iceland.................................... 5.25 Jan. 1966 5.25 India........................................ 6.0 Jan. 1971 ........... 6.0 Indonesia.................................. 6.0 May 1969 6 0 Iran............................................ 8.0 Aug. 1969 7.0 7io Ireland...................................... 7.25 Jan. 1971 6.19 6.06 6.00 5.94 6. ii 5.12 5.12 4.94 4.81 4.81 4.81 Italy........................................... 5.5 Mar. 1970 5.0 4.5 4.5 Jamaica.................................... 6.0 May 1969 5.5 5.0 5.0 Japan........................................ 5.75 Jan. 1971 5.5 5.25 4.75 4.75 Korea .................................... 23.0 Dec. 1970 20.0 5.0 3.5 3.5 Mexico .................................. 4.5 June 1942 4.5 Morocco . . ..................... 3.50 Nov. 1951 3.50 Netherlands............................. 6.0 Aug. 1969 5.5 5.0 4.5 4.5 New Zealand......................... 7.0 Mar. 1961 7.0 Nigeria ................. 4.50 June 1968 4^50 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.................................... 3.75 Feb. 1971 3.75 South Africa.......................... 5.5 Aug. 1968 6.5 6.5 Spain......................................... 6.25 Jan. 1971 6.0 5.0 5.0 Sweden .................................... 7.0 July 1969 6.5 6.0 5.5 5.0 5.0 Switzerland.............................. 3.75 Sept. 1969 3.75 Taiwan...................................... 9.8 Dec. 1970 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 Kingdom................... 7.0 Apr. 1970 6.0 5.0 5.0 Venezuela................................ 5.0 Oct. 1970 5.0 Vietnam .................................. 18.0 Sept. 1970 18.0 Note.—Rates shown are mainly those at which the central bank either Honduras—Rate shown is for advances only. discounts or makes advances against eligible commercial paper and/or Indonesia—Various rates depending on type of paper, collateral, com­ govt, securities for commercial banks or brokers. For countries with modity involved, etc.; more than one rate applicable to such discounts or advances, the rate Japan—Penalty rates (exceeding the basic rate shown) for borrowings shown is the one at which it is understood the central bank transacts from the central bank in excess of an individual bank’s quota: the largest proportion of its credit operations. Other rates for some Morocco—Various rates from 3 per cent to 4.6 per cent depending on type of these countries follow: of paper, maturity, collateral, guarantee, etc. Argentina—3 and 5 per cent for certain rural and industrial paper, de­ Peru—3.5, 5, and 7 per cent for small credits to agricultural or fish produc­ pending on type of transaction; tion, import substitution industries and manufacture of exports; 8 per Brazil—8 per cent for secured paper and 4 per cent for certain agricultural cent for other agricultural, industrial and mining paper; paper; Philippines—6 per cent for financing the production, importation, and dis­ Chile—Various rates ranging from 1 per cent to 17 per cent; 20 per cent tribution of rice and corn and 7.75 per cent for credits to enterprises en­ for loans to make up reserve deficiencies. gaged in export activities. Preferential rates are also granted on credits to Colombia—5 per cent for warehouse receipts covering approved lists of rural banks; and products, 6 and 7 per cent for agricultural bonds, and 12 and 18 per cent Venezuela—2 per cent for rediscounts of certain agriculture paper, 4l/2 for rediscounts in excess of an individual bank’s quota; per cent for advances against government bonds, and 5 Vi per cent for Costa Rica—5 per cent for paper related to commercial transactions rediscounts of certain industrial paper and on advances against promissory (rate shown is for agricultural and industrial paper); notes or securities of first-class Venezuelan companies. Ecuador—5 per cent for special advances and for bank acceptances for Vietnam—10 per cent for export paper; treasury bonds are rediscounted agricultural purposes, 7 per cent for bank acceptances for industrial at a rate 4 percentage points above the rate carried by the bond; and purposes, and 10 per cent for advances to cover shortages in legal reserves; there is a penalty rate of 24 per cent for banks whose loans exceed quan­ Ethiopia—5 per cent for export paper and 6 per cent for Treasury bills. titative ceilings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ MONEY RATES; ARBITRAGE A 95 OPEN MARKET RATES (Per cent per annum) Canada United Kingdom France Fe G d e . r R m e a p n . y o , f Netherlands Sw la i n tz d er­ Month 3 T m r b e o i a l n s ls t u , h r s y i D m a o d y n a - e y t y o - 2 3 m Pr o im nt e hs3 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - C d b r l e a e a p t a n e o r k s i s n s 4 it ’ g m Da o d y n a - y e t y o- 5 T Oa r d b e cU a \ i a l y - s l 7o s s u Wn 6 ry D m a o d y n a - y e t y o- 7 3 T r m b e i a o l s l n s u t , h ry s D m a d o y a n - y e to y - d P is r r c i a v o t a e u t n e t 1970......................... 6.12 6.22 8.26 6.70 5.73 5.23 8.67 6.54 8.67 5.97 6.47 5.14 1971......................... 3.62 3.76 6.41 5.57 4.93 3.84 4.54 6.10 4.34 3.76 5.24 1971—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 3.30 3.48 8.06 6.66 6.12 5.00 5.77 5.75 7.36 4.49 3.27 5.25 Apr............... 3.04 2.65 7.06 5.75 5.15 4.00 5.53 4.75 4.23 3.59 1.13 5.25 May............. 3.06 2.76 7.06 5.65 5.36 4.00 5.84 4.75 2.31 3.88 1.84 5.25 June............. 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 4.03 2.69 5.25 Aug.............. 3.88 3.94 5.99 5.75 5.05 4.00 5.69 4.25 6.18 4.24 5.53 5.25 Sept.............. 3.93 4.16 3 5.42 4.83 4.39 4 3.00 5.99 4.25 7.01 4.34 3.80 5.25 Oct............... 3.79 4.16 8 4.90 4.63 4.29 2.88 5.95 3.75 7.50 4.47 5.35 5.25 Nov.............. 3.31 3.60 4.74 4.48 3.75 2.70 5.51 3.75 4.58 4.06 3.79 5.25 Dec............... 3.25 3.63 4.42 4.36 3.46 2.50 5.28 3.25 5.78 3.90 4.91 5.12 1972—Jan............... 3.29 3.71 4.48 4.36 3.94 2.50 4.20 3.61 4.44 5.00 Feb............... 3.48 3.79 4.85 4.37 4.43 2.50 4.20 1 Based on average yield of weekly tenders during month. 5 Rate shown is on private securities. 2 Based on weekly averages of daily closing rates. 6 Rate in effect at end of month. 3 Data for 1968 through Sept. 1971 are for bankers’ acceptances, 3 7 Monthly averages based on daily quotations. months. 8 Bill rates in table are buying rates for prime paper. 4 Data for 1968 through Sept. 1971 are for bankers’ allowance on Note.—For description and back data, see “International Finance,’ deposits. Section 15 of Supplement to Banking and Monetary Statistics, 1962. ARBITRAGE ON TREASURY BILLS (Per cent per annum) United States and United Kingdom United States and Canada Treasury bill rates Treasury bill rates Date United P ( r + em ) i o u r m inc N en e t t ive Canada P d ( r i + e sc m ) o i u o u n r m t inc N en e t t ive q K ( u i a b o n U d a t g j s . a . d S i t s o i . t ) o o m n U S n ta i t t e e s d L S ( o f p n a o r v d e f o o ad r n) d f ( p o i — s o r c w u ) o n a o u r d n n d t L ( o f n a o v d f o o r n) qu A i o n t s ed qu A o U d t j . a . S t . i t o o n U S n ta i t t e e s d C S ( a f p n a o r v a e f d o ad a r ) C f ( d o a - o n rw ) l a l d a a o r i r n a s d n C ( a f n a o v a f o d r a) Canada basis 1971 Sept. 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 Oct. 1............... 4.77 4.52 .25 1.88 2.13 4.05 3.95 4.52 -.57 .75 .18 8............... 4.73 4.45 .28 1.97 2.25 4.00 3.81 4.45 -.54 .42 -.12 15............... 4.63 4.35 .28 1.93 2.21 3.92 3.83 4.35 -.52 .26 -.26 22............... 5.53 4.38 1.15 .44 1.59 3.71 3.63 4.38 -.75 .04 -.71 29............... 4.53 4.30 .23 -.66 -.43 3.47 3.39 4.30 -.91 .04 -.87 Nov. 5............... 4.51 4.06 .45 .26 .71 3.35 3.28 4.06 -.78 .12 -.66 12............... 4.51 4.11 .40 .48 .88 3.31 3.24 4.11 -.87 .24 -.63 19............... 4.49 4.06 .43 1.09 1.52 3.33 3.26 4.06 -.80 .44 -.36 26............... 4.47 4.36 .11 2.13 2.24 3.30 3.23 4.36 -1.13 .60 -.59 Dec. 3............... 4.29 4.21 .08 2.56 2.64 3.40 3.33 4.21 -.88 .58 -.30 10............... 4.19 4.01 .18 1.75 1.93 3.30 3.23 4.01 -.78 .62 -.16 17............... 4.35 3.98 .37 2.37 2.74 3.17 3.10 3.98 -.88 .64 -.24 24............... 4.41 3.78 .63 1.10 1.73 3.18 3.09 3.78 -.69 .56 -.13 31............... 4.41 3.70 .71 .81 1.52 3.20 3.14 3.70 -.56 .72 .16 1972 Jan. 7............... 4.32 3.45 .87 .93 1.80 3.33 3.26 3.45 -.19 .52 .33 14............... 4.29 3.09 1.20 1.76 2.96 3.24 3.17 3.09 .08 .40 .48 21............... 4.31 3.29 1.02 .61 1.63 3.24 3.17 3.29 -.12 .32 .20 28............... 4.29 3.34 .95 -.06 .89 3.38 3.31 3.34 -.03 .20 .17 Feb. 4............... 4.29 3.24 1.05 -.13 .92 3.55 3.46 3.24 .22 -.08 .14 11............... 4.32 2.89 1.43 -.28 1.15 3.43 3.35 2.89 .46 -.48 -.02 18............... 4.32 2.97 1.35 -.44 .91 3.48 3.40 2.97 .43 -.92 -.49 25............... 4.31 3.22 1.09 -.37 .72 3.47 3.39 3.22 .17 - 1.00 -.83 Note.—Treasury bills: All rates are on the latest issue of 91-day bills. All series: Based on quotations reported to F.R. Bank of New York U.S. and Canadian rates are market offer rates 11 a.m. Friday; U.K. by market sources. rates are Friday opening market offer rates in London. For description of series and for back figures, see Oct. 1964 Bulletin, Premium or discount on forward pound and on forward Canadian dollar: pp. 1241-60. For description of adjustments to U.K. and Canadian Rates per annum computed on basis of midpoint quotations (between Treasury bill rates, see notes to Table 1, p. 1257, and to Table 2, p. 1260, bid and offer) at 11 a.m. Friday in New York for both spot and forward Oct. 1964 Bulletin. pound sterling and for both spot and forward Canadian dollars. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 96 GOLD RESERVES □ MARCH 1972 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS (In millions of dollars) Esti­ Intl. Esti­ E pe n r d i o o d f m to a t t a e l d M ta o r n y e­ U St n a i t t e e s d r m es a t t e o d f Algeria A t r i g n e a n­ t A ra u l s ia ­ A tr u ia s­ g B iu e m l­ Brazil Burma Canada Chile world1 Fund world 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............................ 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 Apr................. 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............... 41,250 4,523 10,507 26^220 191 140 254 747 1,584 46 22 792 47 July................. 4,479 10,453 192 140 259 746 1,600 46 22 792 47 Aug................. 4,695 10,209 192 140 259 752 1,584 46 22 792 47 Sept................. 41,210 4,722 10,207 26,280 192 140 259 722 1,572 46 22 792 Oct.................. 4,724 10,207 192 140 259 722 1,564 46 22 792 Nov............... 4,726 10,206 192 140 259 722 1,564 46 22 792 Dec................. *41,200 4,732 10,206 *26,260 192 90 259 729 1,544 46 22 792 1972—Jan.®............... 4,732 10,206 192 260 729 1,544 22 792 Ger­ E pe n r d i o o d f lo C m o b ­ ia m De ar n k ­ l F a i n n d ­ France m F a e n d y . , Greece India Iran Iraq l I a r n e d ­ Israel Italy Japan Rep. of 1965 35 97 84 4,706 4,410 78 281 146 110 21 56 2,404 328 1966 26 108 45 5,238 4,292 120 243 130 106 23 46 2,414 329 1967............................ 31 107 45 5,234 4,228 130 243 144 115 25 46 2,400 338 1968............................ 31 114 45 3,877 4,539 140 243 158 193 79 46 2,923 356 1969............................ 26 89 45 3,547 4,079 130 243 158 193 39 46 2,956 413 1970............................ 17 64 29 3.532 3,980 117 243 131 144 16 43 2,887 532 1971-—Jan.................. 17 64 29 3.532 3,979 114 243 131 144 16 43 2,886 532 Feb.................. 17 64 29 3,531 3,978 99 243 131 144 16 43 2,885 534 Mar................. 16 64 29 3,527 3,977 99 243 131 144 16 43 2.884 539 Apr.................. 16 64 29 3,527 4,029 99 243 131 143 16 43 2.884 636 May................ 16 64 29 3,523 4,035 99 243 130 143 16 43 2.884 641 June................ 16 64 29 3,523 4,046 99 243 131 143 16 43 2.884 641 July................. 16 64 29 3.523 4,077 99 243 131 143 16 43 2.884 670 Aug................. 14 64 49 3.523 4.076 99 243 131 143 16 43 2.884 679 Sept................. 14 64 49 3.523 4.077 98 243 131 143 16 43 2.884 679 Oct.................. 14 64 49 3.523 4.077 98 243 131 143 16 43 2.884 679 Nov................. 14 64 49 3.523 4.077 98 243 131 143 16 43 2,884 679 Dec................. 14 64 49 3.523 4.077 98 243 131 144 16 43 2,884 679 1972-—Jan.'j............... 14 64 49 3,523 4.077 98 131 144 16 43 2,884 679 E pe n r d i o o d f Kuwait a L n e o b n ­ Libya M s a i l a ay­ M c e o xi­ Mo co roc­ N la e n th d e s r­ N w o ay r­ P s a ta k n i­ Peru P p h in il e ip s ­ Po g r a t l u­ A S r a a u b d i i a 1965............................ 52 182 68 2 158 21 1,756 31 53 67 38 576 73 1966............................ 67 193 68 1 109 21 1,730 18 53 65 44 643 69 1967............................ 136 193 68 31 166 21 1 ,711 18 53 20 60 699 69 1968............................ 122 288 85 66 165 21 1,697 24 54 20 62 856 119 1969............................ 86 288 85 63 169 21 1,720 25 54 25 45 876 119 1970............................ 86 288 85 48 176 21 1,787 23 54 40 56 902 119 1971--Jan.................. 86 288 85 48 176 21 1,812 23 54 40 58 902 119 Feb.................. 86 322 85 48 176 21 1,812 23 54 40 59 902 119 Mar................. 86 322 85 48 176 21 1,812 23 54 40 60 902 119 Apr................. 86 322 85 48 182 21 1,863 31 54 40 61 902 119 May................ 87 322 85 53 182 21 1,867 32 54 40 62 902 119 June................ 87 322 85 58 182 21 1,867 32 55 40 63 902 119 July................. 87 322 85 58 184 21 1,888 34 55 40 64 895 119 Aug................. 87 322 85 58 184 21 1,889 34 55 40 65 907 127 Sept................. 87 322 85 58 184 21 1,889 34 55 40 66 911 127 Oct.................. 87 322 85 58 184 21 1.889 34 55 40 67 911 127 Nov............... 87 322 85 58 21 1.889 34 55 40 67 918 128 Dec................. 87 322 85 58 21 1,909 33 55 67 921 128 1972-—Jan.®............... 87 322 85 58 1,908 33 55 68 921 128 For notes see end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ GOLD RESERVES AND PRODUCTION A 97 GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS—Continued (In millions of dollars) Bank E pe n r d i o o d f A So fr u i t c h a Spain Sweden Sw la i n tz d er­ Taiwan T la h n a d i­ Turkey ( U E . g A y . p R t) . U K d n i o n it m g e ­ d g U u r a u y ­ V zu e e n l e a ­ Y sl u av g i o a ­ S I e f n t o t t r l l e . ­ ments 4 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................................. 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 June.................... 551 498 200 2,857 82 81 127 85 804 151 389 52 213 July..................... 481 498 200 2,909 82 81 127 85 803 148 391 52 225 Aug..................... 486 498 200 2,909 81 81 127 85 778 148 391 52 210 Sept..................... 479 498 200 2,909 81 82 127 85 778 148 391 52 215 Oct...................... 460 498 200 2,909 80 82 127 85 778 148 391 52 227 Nov..................... 443 498 200 2,909 80 82 122 85 778 148 391 30 249 Dec..................... 410 498 200 2,909 80 82 130 775 148 391 30 310 1972—Jan.*'................... 403 498 200 2,909 80 82 130 391 332 1 Includes reported or estimated gold holdings of international and some member countries in anticipation of increase in Fund quotas, except regional organizations, central banks and govts, of countries listed in those matched by gold mitigation deposits with the United States and this table and also of a number not shown separately here, and gold to be United Kingdom; adjustment is $270 million. distributed by the Tripartite Commission for the Restitution of Monetary 3 Excludes gold subscription payments made by some member countries Gold; excludes holdings of the U.S.S.R., other Eastern European coun­ in anticipation of increase in Fund quotas: for most of these countries tries, and China Mainland. the increased quotas became effective in Feb. 1966. The figures included for the Bank for International Settlements are 4 Net gold assets of BIS, i.e., gold in bars and coins and other gold the Bank's gold assets net of gold deposit liabilities. This procedure assets minus gold deposit liabilities. avoids the overstatement of total world gold reserves since most of the gold deposited with the BIS is included in the gold reserves of individual Note.—For back figures and description of the data in this and the countries. following tables on gold (except production), see “Gold,” Section 14 of 2 Adjusted to include gold subscription payments to the IMF made by Supplement to Banking and Monetary Statistics, 1962. GOLD PRODUCTION (In millions of dollars at $35 per fine troy ounce) Africa North and South America Asia Other World Period produc­ tion i A So fr u i t c h a Ghana C s ( h K o a n i s n g a ­ o ) U St n a i t t e e s d C a a d n a ­ M ic e o x­ N ra ic g a u ­ a Co b l i o a m­ India Japan P p h i i n l e ip s ­ t A ra u l s ia ­ o A th l e l r 196 5 1.440.0 1,069.4 26.4 2.3 58.6 125.6 7.6 5.4 11.2 4.6 18.1 15.3 30.7 64.8 196 6 1.445.0 1,080.8 24.0 5.6 63.1 114.6 7.5 5.2 9.8 4.2 19.4 15.8 32.1 62.9 196 7 1.410.0 1.068.7 26.7 5.4 53.4 103.7 5.8 5.2 9.0 3.4 23.7 17.2 28.4 59.4 1 1 9 9 6 6 8 9 1 1 . . 4 4 2 2 0 0 . . 0 0 1 1 , . 0 0 8 9 8 0 . . 0 7 2 24 5 . . 8 4 5 6 . . 9 0 5 60 3 . . 1 9 9 8 4 9 . . 1 1 6 6 . .3 2 3 4 . . 7 9 7 8 . . 7 4 4 3 . . 0 4 2 2 3 1 . . 7 5 2 1 0 8. . 5 0 2 2 7 4. . 5 6 6 6 1 0 . . 6 0 1970*........... 1.450.0 1,128.0 24.8 6.2 63.5 84.3 6.9 3.8 7.1 3.7 24.8 21.1 21.7 54.1 1970—Dec.. 89.7 2.1 r6.9 .5 .3 2.0 1971—Jan.. 91.3 7.0 .4 .4 2.2 .6 Feb.. 89.6 6.6 .6 .4 2.3 rl. 5 Mar.. 94.3 6.7 .5 .4 2.4 r2.6 Apr.. 91.9 6.5 .5 .4 2.2 1.8 May. 91.5 6.7 .5 .3 1.6 rl. 7 June. 92.0 6.7 .1 .4 2.4 1.8 July.. 93.4 5.8 1.1 2.4 2.1 Aug.. 92.3 6.3 .6 2.4 Sept. 91.3 6.1 .6 2.4 Oct.. 93.4 6.3 2.1 Nov.. 91.7 6.6 Dec.. 85.7 5.9 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 98 BANK RESERVES AND RELATED ITEMS, 1971 □ MARCH 1972 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS (Averages of daily figures; in millions of dollars) Factors supplying reserve funds Reserve Bank credit outstanding Period or date U.S. Govt, securities1 Treas­ Special ury Dis­ Drawing cur­ Held counts Other Gold Rights rency Bought under and Float F.R. Total stock certificate out­ Total out­ repur­ ad­ assets2 account stand­ right chase vances ing agree­ ment 1971—Jan................................... 62,068 61,941 127 370 3,636 1,216 67,363 10,732 400 7,157 Feb.................................. 62,350 62,051 299 328 2,974 1,065 66,797 10,732 400 7 188 Mar................................. 62,719 62,381 338 319 2,671 892 66,691 10,732 400 7; 235 Apr.................................. 63,371 63,153 218 148 3,047 1,103 67,747 10,732 400 7,291 May................................ 64,714 64,368 346 330 2,704 1,076 68,926 10,448 400 7,357 June................................ 64,642 64,574 68 453 2,690 979 68,834 10,332 400 7,419 July................................. 66,001 65,652 349 820 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................................. 67,106 66,794 312 501 2,974 900 71,568 10,132 400 7,523 Oct................................... 67,690 67,488 202 360 3,122 1,105 72,349 10,132 400 7,545 Nov................................. 68,052 67,655 397 407 3,129 1,013 72,694 10,132 400 7,573 Dec................................. 69,158 68,868 290 107 3,905 982 74,255 10,132 400 7,611 Weekending—1970—Dec. 30 61,704 61,554 150 270 4,643 1,097 67,783 11,117 400 7,171 1971 Jan. 6......................... 62,477 62,091 386 407 4,393 1,164 68,538 10,732 400 7,148 13......................... 62,110 62,110 277 3,718 1,182 67,347 10,732 400 7,151 20......................... 61.970 61,874 96 472 3,910 1,222 67,643 10,732 400 7,155 27......................... 61,889 61,809 80 354 3,022 1,256 66,586 10,732 400 7,164 Feb. 3......................... 61,956 61,783 173 283 2,620 1,264 66,201 10,732 400 7,172 10......................... 61,769 61,722 47 247 3,163 1,284 66,528 10,732 400 7,177 17......................... 62,936 62,161 775 561 2,632 1,166 67,401 10,732 400 7,189 24......................... 62,350 62,152 198 250 3,472 797 66,944 10,732 400 7,195 Mar. 3......................... 62,627 62,479 148 258 2,723 844 66,520 10,732 400 7.210 10......................... 62,206 62,169 37 421 2,906 829 66,414 10,732 400 7,223 17......................... 63,032 62,301 731 290 2,549 879 66,867 10,732 400 7,230 24......................... 62,510 62,423 87 333 2,853 922 66,699 10,732 400 7,242 31......................... 63,076 62,581 495 257 2,482 966 66,874 10,732 400 7,255 Apr. 7......................... 63.268 62,709 559 197 2,718 1,010 67,308 10,732 400 7,268 14......................... 63,114 62,921 193 150 2,958 1,053 67,338 10,732 400 7,284 21......................... 63,526 63,394 132 84 3,259 1,177 68,110 10,732 400 7.296 28......................... 63,476 63,424 52 176 3,252 1.152 68,131 10,732 400 7,309 May 5......................... 64,238 63,808 430 174 2,753 1,186 68,438 10,732 400 7,326 12......................... 64,504 63,981 523 99 2,540 1,297 68,537 10,561 400 7,345 19......................... 64,804 64,452 352 306 2,964 1.109 69,276 10,332 400 7,354 26......................... 64,942 64,764 178 267 2,787 851 68,955 10,332 400 7,372 June 2......................... 64,877 64,777 100 646 2,461 923 69,007 10,332 400 7,390 9......................... 64,432 64,432 153 2,750 911 68,310 10,332 400 7,404 16......................... 64,385 64,385 403 2,627 959 68,437 10,332 400 7,417 23......................... 64,302 64,117 185 619 2,917 1,007 68,936 10,332 400 7,429 30......................... 65,352 65,295 57 750 2,588 1,047 69,802 10,332 400 7,434 July 7......................... 65,772 65,461 311 661 2,965 1,092 70,586 10,332 400 7,431 14......................... 65,826 65,669 157 991 3,179 1,145 71,216 10,332 400 7,430 21......................... 66,435 65,694 741 1,121 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 65,956 111 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 15......................... 67,082 66,596 486 457 2,920 894 71,455 10,132 400 7,522 22......................... 66,687 66,687 329 3,602 923 71,591 10,132 400 7,532 29......................... 67,393 67,071 322 424 2,863 963 71,730 10,132 400 7,542 Oct. 6......................... 68,079 67,657 422 309 2,720 1,007 72,205 10,132 400 7,530 13......................... 67,748 67,662 86 449 2,803 1,071 72,136 10,132 400 7,525 20......................... 67,810 67,496 314 332 3,585 1,113 72,925 10,132 400 7,549 27......................... 67,334 67,257 77 413 3,091 1,160 72,053 10,132 400 7,560 Nov. 3......................... 67,390 67,276 114 216 3,262 1,207 72,132 10,132 400 7,549 10......................... 67,307 67,155 152 122 3,105 1,240 71,847 10,132 400 7,557 17......................... 67,828 67,414 414 287 3,268 1,061 72,535 10,132 400 7,573 24......................... 68,400 67,867 533 538 3,214 796 73,056 10,132 400 7,576 Dec. 1......................... 68,970 68,481 489 705 3,027 859 73,669 10,132 400 7,586 8......................... 68,941 68,822 119 59 3,090 893 73,047 10,132 400 7,594 15......................... 68,761 68,761 25 3,473 927 73,245 10,132 400 7,602 22......................... 68,958 68’,863 95 141 4’444 988 74,621 10,132 400 7,615 29......................... 69,514 68,938 576 216 4,644 1,096 75,627 10,132 400 7,634 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BANK RESERVES AND RELATED ITEMS, 1971 A 99 MEMBER BANK RESERVES, FEDERAL RESERVE BANK CREDIT, AND RELATED ITEMS—Continued (Averages of daily figures; in millions of dollars) Factors absorbing reserve funds Deposits, other than member bank Member bank reserves, reserves Cur­ Treas­ with F.R. Banks Other Period or date rency ury F.R. in cash lia­ cir­ hold­ bilities cula­ ings and With Cur­ tion Treas­ For­ Other capital2 F.R. rency ury eign Banks and Total coin3 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 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 57,969 491 652 155 698 2,227 24,793 5,230 30.023 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 59,012 466 1,621 151 712 2,296 25,365 5,437 30,802 59,185 464 2,100 152 736 2,327 25,463 5,397 30,860 59,939 470 1,723 133 714 2,320 25,500 5,453 30,953 61,060 453 1,926 290 728 2,287 25,653 5,676 31,329 57,424 409 1,205 162 711 2,231 24,329 5,514 29,843 57,021 430 973 154 1,053 2,006 25,181 5.430 30,611 .............................................1971—Jan. 6 56,654 430 1,039 158 711 2,061 24,578 5,664 30.242 56,099 440 925 158 718 2.120 25,470 5,559 31,029 .....................................................................20 55,585 465 1,184 159 737 2.169 24,583 5.589 30.172 55,442 468 900 143 807 2,237 24.510 5.449 29.959 ..........................................................Feb. 3 55,664 466 1.163 147 771 2.300 24.326 5.434 29.760 .....................................................................10 55.946 465 1 .226 157 759 2.097 25,073 5.129 30.202 .....................................................................17 55,816 463 816 155 759 2.243 25.019 4,897 29,916 .....................................................................24 55.719 469 924 138 768 2.321 24,522 5.020 29.542 56,000 467 1,044 136 732 2,379 24,011 5,393 29,404 .....................................................................10 56,300 463 547 141 742 2,139 24,897 5,058 29,955 .....................................................................17 56,213 465 743 121 698 2,141 24,691 4,791 29,482 ....................................................................24 56,110 475 806 162 694 2,198 24,817 5,123 29,940 .....................................................................31 56,428 489 1,048 148 828 2,281 24,486 5,184 29,670 56,971 497 807 162 727 2,208 24,381 5,244 29,625 .....................................................................14 56,880 502 945 141 760 2,112 25,199 4,739 29.938 .....................................................................21 56,610 506 1,338 140 704 2,166 25,108 5,049 30,157 .....................................................................28 56,715 519 1,035 154 714 2,262 25.497 5,283 30,780 57,164 507 1,314 167 689 2,299 24,703 5,381 30,084 57,266 499 1,248 162 697 2,148 25,344 5,018 30,362 57,165 502 1,045 187 677 2,225 25,260 4,986 30,246 .....................................................................26 57,482 506 890 187 703 2,304 25,057 5,219 30,276 57,851 494 394 151 695 2,328 24,534 5,352 29,886 58,078 494 9 150 695 2,148 25,012 5,213 30,225 .....................................................................16 58,005 493 670 155 689 2,169 24,916 5,003 29,919 .....................................................................23 58,011 480 1,464 166 693 2,233 24,921 5,371 30,292 .....................................................................30 58,671 460 1,535 170 707 2,307 24,898 5,415 30,313 59,182 460 1,778 162 721 2,264 24,811 5,443 30,254 .....................................................................14 58,955 470 1,602 166 703 2,183 26,074 4,858 30,932 .....................................................................21 58,683 488 1,383 137 708 2,236 25,142 5,481 30,623 ....................................................................28 58,691 484 1,121 174 746 2,322 25,456 5,438 30,894 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 59,063 464 1,318 165 711 2,402 25,341 5,514 30,855 .......................................................................8 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 25,345 5,015 30,360 .....................................................................22 58,685 473 2,009 146 718 2,299 25,473 5,600 31,073 .....................................................................29 58,825 466 2,148 183 765 2,398 25,483 5,510 30,993 ..........................................................Oct. 6 59,316 459 2,093 134 763 2,379 25,050 5,652 30,702 .....................................................................13 59,347 460 2,117 145 730 2,252 25,954 5,117 31,071 .....................................................................20 59,174 456 2,183 156 711 2,281 25,184 5,240 30,424 .....................................................................27 59,307 483 1,795 134 726 2,355 25,412 5,549 30,961 59,594 479 1,598 119 710 2,422 25,014 5,566 30,580 .....................................................................10 59,925 465 1,582 123 725 2,244 25,577 5,595 31,172 .....................................................................17 60,107 464 1,927 123 686 2,265 25,591 5,125 30,716 .....................................................................24 60,424 457 1,894 169 732 2,328 25,783 5,492 31,275 .........................................................Dec. 1 60,568 456 1,749 133 717 2,398 25,151 5,592 30,743 .......................................................................8 61,040 457 1,563 143 710 2,219 25,246 5,907 31,153 61,242 450 1,895 426 736 2,234 25,785 5,366 31,151 .....................................................................22 61,448 448 2,336 471 708 2,301 26,081 5,843 31,924 .....................................................................29 ■ 1 U.S. Govt, securities include Federal agency obligations. 3 Part allowed as reserves Dec. 1, 1959—Nov. 23, 1960; all allowed 2 Beginning Apr. 16, 1969, “Other F.R. assets” and “Other F.R. thereafter. Beginning with Jan. 1963, figures are estimated except for liabilities and capital” are shown separately; formerly, they were netted weekly averages. Beginning Sept. 12, 1968, amount is based on closetogether and reported as “Other F.R. accounts.” of-business for reserve period 2 weeks previous to report date. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 100 BANK RESERVES AND RELATED ITEMS, 1971 a MARCH 1972 RESERVES AND BORROWINGS OF MEMBER BANKS (In millions of dollars) Reserve city banks All member banks New York City City of Chicago Period Reserves Bor­ Reserves Bor­ Reserves Bor­ T h o e t ld al qu R i e re ­ d Excess r F i o n a . w g R t s . ­ s F e r r r e v e ­ e e s T h o e t ld al qu R i e re ­ d Excess F i r n o a .R g w t s . s F e r r r e v e ­ e e s T h o e t ld al qu R i e re ­ d Excess r F i o n a . w g R t s ­ . s F e r r r e v e ­ e e s Banks Banks Banks Jan.. 30,488 30,209 279 370 -91 5,976 5,917 59 40 19 1,387 1,392 -5 1 -6 Feb , 29,880 29,679 201 328 -127 5,854 5,810 44 29 15 1,403 1,380 23 4 19 Mar. 29,686 29,487 199 319 -120 5,664 5.703 -39 51 -90 1,375 1.384 -9 16 -25 Apr. 29,885 29,745 140 148 -8 5,690 5.696 -6 15 -21 1,392 1,385 7 4 3 May. 30,419 30,107 312 330 -18 5,837 5.791 46 113 -67 1,436 1,421 15 13 2 June 30,023 29,892 131 453 -322 5,637 5,674 -37 90 -127 1,387 1,405 -18 21 -39 July 30,547 30,385 162 820 -658 5,729 5,754 -25 86 -111 1,407 1,408 -1 28 -29 Aug.. 30.455 30,257 198 804 -606 5,693 5,640 53 164 -111 1,417 1,410 7 7 Sept. 30,802 30,596 206 501 -295 5,683 5,674 9 38 -29 1,417 1,423 -6 4 -10 Oct.. 30.860 30,653 207 360 -153 5,678 5,667 11 67 -56 1,425 1,408 17 15 2 Nov. 30,953 30,690 263 407 -144 5,644 5,608 36 107 -71 1,408 1,400 8 22; -14 Dec. 31,329 31,164 165 107 58 5,774 5,749 25 35 -10 1,426 1,425 1 8 -7 Week ending— 1970—Dec. 30.... 29,843 29,409 434 270 164 5,843 5,693 150 150 1,362 1,332 30 30 1971—Jan. 6.... 30,611 30,035 576 407 169 6.064 5,902 162 71 91 1,396 1,411 -15 -15 13.... 30,242 30,210 32 277 -245 5,850 5,910 -60 -60 1,402 1,384 18 18 20.... 31,029 30,937 92 472 -380 6,165 6,198 -33 92 -125 1,424 1,464 -40 5 -45 21.... 30,172 29,890 282 354 -72 5,752 5,760 -8 26 -34 1,373 1,335 38 38 Feb. 3.. .. 29,959 29,722 237 283 -46 5,775 5,742 33 33 1,331 1,346 -15 -15 10.... 29,760 29,555 205 247 -42 5,685 5,755 -70 -70 1,379 1,367 12 12 17.... 30.202 29,905 297 561 -264 6,118 6,043 75 117 -42 1,367 1,388 -21 18 -39 24.... 29,916 29,599 317 250 67 5,770 5,732 38 38 1,417 1,386 31 31 Mar. 3.... 29,542 29,372 170 258 -88 5,583 5,568 15 15 1,387 1,402 -15 -15 10.... 29,404 29,322 82 421 -339 5,595 5,657 -62 120 -182 1,355 1,367 -12 44 -56 17.... 29,955 29,690 265 290 -25 5,853 5,830 23 46 -23 1,447 1,419 28 28 24.... 29,482 29,414 68 333 -265 5,664 5,669 -5 59 -64 1,354 1,365 -11 14 -25 31.... 29,940 29,564 376 257 119 5,847 5,714 133 133 1,390 1,379 11 14 -3 Apr. 7.... 29,670 29,393 277 197 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 29,857 81 84 -3 5,728 5,784 -56 -56 1,381 1,384 -3 -3 28.... 30,157 30,109 48 176 -128 5,625 5,682 -57 46 -103 1,430 1,418 12 18 -6 May 5.... 30,780 30,415 365 174 191 5,907 5,817 90 46 44 1,440 1,449 -9 -9 12.... 30,084 29,854 230 99 131 5,657 5,716 -59 39 -98 1,424 1,393 31 31 19.... 30,362 30,260 102 306 -204 5,986 5,967 19 143 -124 1,426 1,455 -29 41 -70 26.... 30,246 30,072 174 267 -93 5,768 5,781 -13 100 -113 1,435 1,416 19 18 1 June 2.. .. 30,276 29,991 285 646 -361 5,693 5,638 55 171 -116 1,387 1,396 -9 -9 9.... 29,886 29,813 73 153 -80 5,648 5,680 -32 46 -78 1,414 1,413 1 1 16.... 30,225 29,959 266 403 -137 5,742 5,729 13 129 -116 1,473 1,467 6 6 23.. .. 29,919 29,709 210 619 -409 5,648 5,607 41 103 -62 1,338 1,351 -13 77 -90 30.... 30,292 30,060 232 750 -518 5,676 5,699 -23 107 -130 1,405 1,394 11 111 July 7.. .. 30,313 30,036 277 661 -384 5,689 5,663 26 34 -8 1,388 1,374 14 14 14.... 30,254 30,249 5 991 -986 5,747 5,814 -67 252 -319 1,390 1,412 -22 -22 21.. . . 30,932 30,650 282 1,121 -839 5,911 5,856 55 65 -10 1,464 1,451 13 116 -103 28.... 30,623 30,556 67 545 -478 5,671 5,718 -47 30 -77 1,383 1,384 -1 7 -8 Aug. 4.... 30,894 30,460 434 764 -330 5,781 5,677 104 43 61 1,447 1,434 13 13 11.... 30,330 30,303 27 593 -566 5,625 5,699 -74 -74 1,419 1,431 -12 -12 18.... 30,605 30,381 224 1,179 -955 5,816 5,748 68 342 -274 1,416 1,412 4 31 -27 25.... 30,111 30,020 91 771 -680 5,456 5,522 -66 267 -333 1,387 1,383 4 4 Sept. 1.. .. 30,519 30,195 324 706 -382 5,679 5,561 118 116 2 1,398 1,399 -1 :i -2 8.. .. 30,855 30,650 205 765 -560 5,719 5,759 -40 -40 1,428 1,423 5 4 1 15.... 30,851 30,604 247 457 -210 5,762 5,690 72 72 1,441 1,448 -7 3 -10 22.... 30,360 30,421 -61 329 -390 5,469 5,578 -109 86 -195 1,410 1,413 -3 9 -12 29.... 31,073 30,730 343 424 -81 5,825 5,689 136 36 100 1,410 1,412 -2 -2 Oct. 6.... 30,993 30,779 214 309 -95 5,644 5,671 -27 29 -56 1,441 1,422 19 19 13.... 30,702 30,653 49 449 -400 5,668 5,693 -25 100 -125 1,413 1,432 -19 7 -26 20.... 31,071 30,861 210 332 -122 5,808 5,818 -10 35 -45 1,429 1,421 8 4 4 27.. .. 30,424 30,373 51 413 -362 5,513 5,508 5 133 -128 1,353 1,364 -11 54 -65 Nov. 3.... 30,961 30,565 396 216 180 5,681 5,626 55 55 1,435 1,400 35 35 10.... 30,580 30,570 10 122 -112 5,589 5,597 -8 21 -29 1,376 1,406 -30 -30 17.... 31,172 30,984 188 287 -99 5,705 5,761 -56 64 -120 1,447 1,433 14 14 24.... 30,716 30,572 144 538 -394■ 5,589 5,520 69 150 -81 1,358 1,374 -16 47 -63 Dec. 1.... 31,275 30,685 590 705 -115; 5,701 5,538 163 222 -59 1,438 1,386 52 47 5 8.... 30,743 30,600 143 59 84 5,671 5,604 67 67 1,356 1,366 -10 -10 15.... 31,153 30,949 204 25 1791 5,699 5,757 -58 -58 1,479 1,451 28 28 22.... 31,151 31,180 -29 141 -1701 5,747 5,764 -17 79 -96 1,371 1,414 -43 14 -57 29.... 31,924 31,610 314 216 981 5,793 5,799 -6 76 -82 1,511 1,445 66 21 45 For notes see opposite page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BANK RESERVES AND RELATED ITEMS, 1971 A 101 RESERVES AND BORROWINGS OF MEMBER BANKS—Continued (In millions of dollars) Other reserve city banks Country banks Period Reserves Reserves Borrow­ Borrow­ ings at Free ings at Free Total F.R. reserves Total F.R. reserves held Required Excess Banks held Required Excess Banks 11,974 11,962 12 294 -282 11,151 10,938 213 35 178 ..............................1971—Jan. 11,647 11,712 -65 268 -333 10,976 10,777 199 27 172 ..........................................Feb. 11,732 11,651 81 236 -155 10,915 10,749 166 16 150 11,754 11,789 -35 119 -154 11,049 10,875 174 10 164 11,923 11,832 91 136 -45 11,223 11,063 160 68 92 11,743 11,735 8 181 -173 11,256 11,078 178 161 17 11,939 11,929 10 441 -431 11,472 11,294 178 265 -87 ..........................................July 11,871 11,883 —12 425 -437 11,474 11,324 150 208 -58 12,115 12,077 38 318 -280 11,587 11,422 165 141 24 12,069 12,050 19 163 -144 11,688 11,528 160 115 45 12,106 12,041 65 177 -112 11,795 11,641 154 101 53 12,198 12,233 -35 22 -57 11,931 11,757 174 42 132 Week ending— 11,682 11,666 16 245 -229 10,956 10,718 238 25 213 .......................1970—Dec. 30 12,028 11,903 125 310 -185 11,123 10,819 304 26 278 .......................1971—Jan. 6 11,912 11,996 -84 249 -333 11,078 10,920 158 28 130 ...............................................13 12,214 12,246 -32 332 -364 11,226 11,029 197 43 154 ...............................................20 11,862 11,800 62 286 -224 11,185 10,995 190 42 148 ...............................................27 11,766 11,759 7 253 -246 11,087 10,875 212 30 182 ....................................Feb. 3 11,728 11,702 26 229 -203 10,968 10,731 237 18 219 ...............................................10 11,733 11,753 -20 380 -400 10,984 10,721 263 46 217 ...............................................17 11,744 11,673 71 228 -157 10,985 10,808 177 22 155 ...............................................24 11,633 11,655 -22 242 -264 10,939 10,747 192 16 176 11,537 11,572 -35 244 -279 10,917 10,726 191 13 178 ...............................................10 11,774 11,724 50 231 -181 10,881 10,717 164 13 151 ...............................................17 11,567 11,613 -46 245 -291 10,897 10,767 130 15 115 ...............................................24 11,752 11,694 58 221 -163 10,951 10,777 174 22 152 ...............................................31 11,758 11,634 124 184 -60 10,976 10,777 199 13 186 ....................................Apr. 7 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 ...............................................21 11,910 11,955 -45 98 -143 11,192 11,054 138 14 124 ...............................................28 12,044 11,939 105 101 4 11,389 11,210 179 27 152 11,826 11,752 74 42 32 11,177 10,993 184 18 166 ...............................................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 ...............................................26 11,891 11,857 34 317 -283 11,305 11,100 205 158 47 11,693 11,753 -60 52 -112 11,131 10,967 164 55 109 .................................................9 11,812 11,749 63 113 -50 11,198 11,014 184 161 23 ...............................................16 11,703 11,640 63 286 -223 11,230 11,111 119 153 -34 ...............................................23 11,827 11,759 68 324 -256 11,384 11,208 176 308 -132 ...............................................30 11,847 11,801 46 372 -326 11,389 11,198 191 255 -64 ....................................July 7 11,786 11,876 -90 498 -588 11,331 11,147 184 241 -57 ...............................................14 12,089 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 ...............................................28 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 12,182 12,138 44 588 -544 11,526 11,330 196 173 23 .................................................8 12,140 12,098 42 324 -282 11,508 11,368 140 130 10 ...............................................15 11,937 12,013 -76 146 222 11,544 11,417 127 88 39 ...............................................22 12,135 12,080 55 231 -176 11,703 11,549 154 157 -3 ...............................................29 12,165 12,117 48 118 -70 11,743 11,569 174 162 12 ....................................Oct. 6 12,011 12,092 -81 234 -315 11,610 11,436 174 108 66 ...............................................13 12,183 12,110 73 194 -121 11,651 11,512 139 99 40 ...............................................20 11,876 11,933 -57 129 -186 11,682 11,568 114 97 17 ...............................................27 12,073 11,976 97 105 -8 11,772 11,563 209 111 98 11,967 12,050 -83 47 -130 11,648 11,517 131 54 77 ...............................................10 12,172 12,139 33 174 -141 11,848 11,651 197 49 148 ...............................................17 11,967 11,973 -6 201 -207 11,802 11,705 97 140 -43 ...............................................24 12,181 12,025 156 282 -126 11,955 11,736 219 154 65 11,932 11,992 -60 15 -75 11,784 11,638 146 44 102 .................................................8 12,156 12,099 57 57 11,819 11,642 177 25 152 ...............................................15 12,180 12,254 -74 24 -98 11,853 11,748 105 24 81 ...............................................22 12,521 12,453 68 58 10 12,099 11,913 186 61 125 ...............................................29 Note.—Averages of daily figures. Monthly data are averages of daily Total reserves held: Based on closing figures for balances with F.R. figures within the calendar month; they are not averages of the 4 or 5 Banks and opening figures for allowable cash. weeks ending on Wed. that fall within the month. Required reserves: Based on deposits as of opening of business each day. Borrowings of F.R. Banks: Based on closing figures. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 102 WEEKLY REPORTING BANKS □ MARCH 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1971 (In millions of dollars) Loans Federal funds sold, etc.1 Other To brokers For purchasing and dealers or carrying securities Total involving— To nonbank loans finan. Wednesday i m n a v e n e n d s t t s ­ Total b c m c a T o i n e m a o k r l ­ ­ s T c U t u r s u i e r e . e r S a y ­ s i s . ­ ­ O c t s u t i e e h r ­ s i e ­ r ot T h o ers Total i C n m t a c r o d n i i e a a m u d r l l s ­ ­ ­ A t c u u g r l a r ­ i l ­ T s U u r e a T e . c r n S o a y s d s . . b ­ d ro ea k O s l e e e t r r c h s s s e . r T s U r u e e . c r S a y s o s . . ­ t T h o er O s se th cs e . r f P s C i a a n i e O n n l a r S e d s s n . s , . t . ituti O on th s er etc. Jan. 6........... 261,112 9,495 7,761 1,119 387 228 177,769 81,510 2,051 1,523 3,768 105 2,358 7,069 6,077 13.......... 258,245 8,994 7,467 1,127 282 118 175,596 81,025 2,016 1,062 3,513 108 2,365 6,708 5,994 20........... 255,968 7,715 6,695 631 238 151 174,760 80,918 2,017 882 3,132 105 2,381 6,687 6,029 27........... 255,528 7,872 6,505 1,009 230 128 174,427 80,017 2,016 1,373 3,465 122 2,322 6,555 6,056 Feb. 3........... 258,935 9,690 7,639 1,502 328 221 174,995 80,260 2,010 1,409 3,428 102 2,331 6,980 6,010 10........... 259,230 10,252 7,858 1,956 355 83 174,697 80,306 2,011 1,593 3,332 102 2,330 6,622 5,995 17........... 256,506 7,804 7,071 330 338 65 174,810 80,715 2,032 770 3,468 101 2,315 6,706 6,014 24........... 257,126 9,012 7,453 1,194 342 23 174,502 80,760 2,023 1,170 3,267 105 2,324 6,386 6,019 Mar. 3........... 259,537 9,022 7,825 822 335 40 175,775 81,068 2,035 1,284 3,694 132 2,345 6,781 5,990 10........... 258,016 7,787 6,459 907 326 .95 175,175 81,188 2,028 788 3,754 107 2,359 6,588 6,007 17........... 259,619 8,278 7,323 495 360 100 176,146 81,794 2,033 822 3,676 126 2,354 6,746 6,148 24........... 257,906 7,440 6,539 537 290 74 175,778 81,419 2,038 872 3,515 106 2,347 6,721 6,159 31........... 260,047 8,287 6,884 880 390 133 176,251 81,162 2,048 854 3,970 93 2,339 7,009 6,261 Apr. 7.......... 264,276 10,302 7,783 1,994 412 113 177,104 80,976 2,059 1,677 4,236 94 2,346 7,035 6,002 14 ........ 265,060 10,715 8,459 1,597 454 205 176,955 81,101 2,083 1,096 4,195 90 2,331 7,084 6,056 21 264,265 9,525 8,330 735 310 150 177,038 81,255 2,100 891 3,885 90 2,343 7,209 6,159 28.......... 260,499 8,233 7,101 773 267 92 176,594 81,072 2,095 575 3,721 93 2,330 7,035 6,271 May 5.......... 262,254 8,214 7,470 391 257 96 177,742 81,299 2,118 552 4,094 113 2,321 7,306 6,464 12 ........ 264,470 9,709 8,521 528 261 399 179,146 81,621 2,133 713 4,245 111 2,361 7,365 6,607 19 . 262,151 9,049 7,971 462 182 434 178,874 81,715 2,149 462 4,076 110 2,348 7,039 6,645 26 . , 259,757 6,974 6,073 405 138 358 178,362 81,370 2,181 561 3,722 125 2,344 6,836 6,708 June 2 263,583 9,071 8,094 596 268 113 179,640 81,703 2,198 773 3,769 125 2,347 7,259 6,715 9 ........ 262,290 8,923 8,066 540 140 177 178,281 81,292 2,217 629 3,645 114 2,349 6,781 6,646 16........... 266,350 9,126 8,308 424 234 160 181,622 82,556 2,223 795 3,934 117 2,355 7,420 6,854 23........... 263,883 8,412 7,653 483 130 146 180,709 82,338 2,238 433 3,732 141 2,366 7,120 6,927 30........... 266,785 7,757 7,015 518 28 196 182,693 82,156 2,261 888 4,175 124 2,412 7,597 7,282 July 7........... 268,681 9,087 8,060 830 58 139 182,782 82,461 2,247 990 3,725 127 2,401 7,480 7,242 14........... 265,221 7,549 6,970 452 17 110 181,816 82,204 2,236 608 3,789 127 2,420 7,073 7,173 21 . , 263,221 7,060 6,545 359 13 143 180,970 81,849 2,227 546 3,554 142 2,420 7,010 7,013 28........... 264,132 8,433 7,705 569 40 119 180,561 81,488 2,219 667 3,490 147 2,415 6,828 6,980 Aug. 4........... 265,418 8,829 8,263 409 13 144 181,714 81,528 2,210 482 4,074 148 2,403 7,057 7,081 11 264,797 8,594 8,119 386 17 72 181,671 81,356 2,207 613 3,791 149 2,394 7,180 7,121 18........... 266,380 8,825 8,083 504 66 172 183,615 82,248 2,191 724 3,907 118 2,405 6,764 7,226 25........... 266,399 8,600 7,699 679 64 158 183,873 82,310 2,185 780 3,951 119 2,428 6,601 7,105 Sept. 1........... 268,878 9,419 8,435 708 120 156 185,231 82,671 2,174 665 4,493 136 2,413 6,834 7,204 8........... 268,898 9,664 8,629 861 38 136 184,756 82,633 2,155 661 4,207 124 2,416 6,579 7,181 15........... 274,526 11,585 9,542 1 ,798 64 181 187,151 83,560 2,162 1,096 4,567 174 2,430 6,802 7,293 22........... 270,672 9,461 8,225 1,036 63 137 186,045 83,589 2,153 822 4,296 144 2,429 6,264 7,278 29........... 271,244 9,830 8,942 698 61 129 186,254 83,435 2,149 708 4,475 128 2,432 6,307 7,310 Oct. 6........... 271,318 9,484 8,415 803 78 188 186,059 83,194 2,151 677 4,519 130 2,426 6,301 7,282 13........... 272,409 9,989 9,238 487 95 169 186,722 83,242 2,162 596 4,453 131 2,408 6,594 7,380 20........... 270,901 9,363 7,676 1,271 80 336 185,829 83,063 2,170 819 4,551 129 2,404 5,904 7,274 27........... 270,687 7,409 6,613 514 66 216 186,069 83,003 2,180 644 4,601 129 2,413 5,946 7,258 Nov. 3........... 275,834 10,457 9,410 695 121 231 187,455 83,091 2,189 1,181 4,807 135 2,387 6,240 7,490 10........... 275,443 10,604 9,298 982 106 218 186,882 82,933 2,199 1,275 4,820 132 2,364 5,914 7,352 17........... 274,806 9,347 8,681 397 74 195 186,803 82,854 2,209 729 4,815 138 2,377 5,877 7,426 24........... 272,851 8,118 7,704 271 90 53 186,611 82,562 2,202 585 4,854 132 2,387 5,855 7,440 Dec. 1........... 278,589 10,351 8,866 1,226 154 105 188,294 82,875 2,201 1,124 5,006 137 2,408 6,283 7,602 8........... 276,008 9,343 8,586 527 148 82 187,508 82,927 2,219 761 4,486 134 2,417 6,008 7,554 15........... 283,198 11,536 9,548 1,590 189 209 190,761 83,853 2,230 1,047 5,098 175 2,413 6,526 7,741 22........... 282,255 10,465 9,214 826 132 293 191,505 83,674 2,256 863 5,545 137 2,424 6,362 7,834 29........... 283,725 10,557 9,550 641 117 249 192,135 83,770 2,279 815 5,435 146 2,439 6,600 7,904 ► Dec. 29........... 565 13 13 349 97 6 1 1 3 For notes see p. A-106. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ WEEKLY REPORTING BANKS A 103 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1970—Continued (In millions of dollars) Loans (cont.) Investments Other (cont.) UU,.S. Treasury securities To commercial Notes and bonds banks maturing— Wednesday Con­ Real sumer For­ All Certif­ estate instal­ eign other Total Bills icates Do­ For­ ment govts.2 Within 1 to After mes­ eign 1 yr. 5 yrs. 5 yrs. tic 34,257 669 1,535 21,788 813 14,246 28,631 6,512 4,243 15.069 2,807 ......................................Jan. 6 34,229 627 1,538 21,772 812 13,827 28,329 6,245 4,267 14,997 2,820 .................................................13 34,234 660 1,515 21,717 796 13,687 28,349 6,237 4,388 15,004 2.720 20 34,274 619 1,564 21,709 784 13,551 28,268 5,943 4,640 14,916 2,769 .................................................27 34,278 457 1,465 21,703 788 13,774 28,576 6,267 4,722 14,840 2,747 ......................................Feb. 3 34,297 465 1,460 21,633 795 13,756 28,259 5,868 4,717 14,954 2.720 10 34,369 534 1,485 21,579 777 13,945 27,762 5,425 3,033 15.007 4,297 .................................................17 34,422 462 1,469 21,567 772 13,756 27,593 5,232 2,994 15,221 4,146.................................................24 34,408 418 1,508 21,545 758 13,809 28,222 5,949 3,032 15,207 4,034 ......................................Mar. 3 34,489 427 1,510 21,499 760 13,671 28,123 5,862 3,056 15,264 3,941.................................................10 34,483 470 1,453 21,511 755 13,775 27,709 5,467 3,045 15,193 4,004 .................................................17 34,533 483 1,399 21,539 787 13,860 27,046 4,706 3,123 15,164 4,053 .................................................24 34,560 454 1,342 21,591 781 13,787 28,060 5,676 3,141 15,186 4.057 31 34,450 583 1,456 21,605 769 13,816 28,380 6,110 3,066 15,111 4,093 ......................................Apr. 7 34,577 579 1,481 21,673 800 13,809 28,387 6,143 3,104 15,104 4,036 .................................................14 34,655 530 1,417 21,699 784 14,021 28,075 5,854 3,125 15,128 3.968 .................................................21 34,737 562 1,495 21,810 803 13,995 26,569 4,409 3,161 15.070 3,929 .................................................28 34,754 561 1,390 21,871 765 14,134 26,506 4,211 3,258 15,081 3,956 ......................................May 5 34,873 671 1,723 21,944 806 13,973 26,154 3,938 3,273 14,995 3,948 .................................................12 34,941 657 1,867 21,989 798 14,078 25,231 3,365 3,322 14,820 3,724 .................................................19 35,058 636 1,873 22,088 812 14,048 25,568 3,862 3,319 14,736 3,651.................................................26 35,096 631 1,735 22,163 831 14,295 25,453 3,801 3.543 14,553 3,556 ......................................June 2 35,197 575 1,749 22,194 833 14,060 25,566 3,986 3.543 14,496 3.541...................................................9 35,374 548 1,957 22,298 818 14,373 25,586 4,056 3,660 14,330 3,540 .................................................16 35,527 584 1,871 22,375 811 14,246 25,052 3,574 3.631 14,371 3.476 .................................................23 35,675 618 1,719 22,665 731 14,390 26,637 4,228 2,691 15,324 3,394 .................................................30 35,656 586 1,925 22,692 795 14,455 27,110 4.858 3,574 15,321 3.357 ......................................July 7 35,933 591 1,836 22,740 800 14,286 26,613 4,576 3,560 15,168 3,309 .................................................14 36,095 588 1,812 22,743 797 14,174 25,936 4,020 3,582 15,051 3,283 .................................................21 36,177 555 1,786 22,801 812 14,196 25,396 3,544 3,596 15,012 3,244 .................................................28 36,216 561 1,860 22,849 802 14,443 25,182 3,431 3,556 14,923 3.272 ......................................Aug. 4 36,371 579 1,974 22,884 809 14,243 25,030 3,300 3,593 14.876 3,261 .................................................11 36,518 777 2,682 22,935 820 14,300 25,006 2,901 3,350 15,831 2.924 .................................................18 36,653 794 2,819 23,015 823 14,290 24,952 2,858 3,367 15,853 2,874 .................................................25 36,734 857 2,534 23,112 810 14,594 24,921 2,808 3,387 16,009 2,717......................................Sept. 1 36,824 880 2,629 23,126 806 14,535 25,072 2,583 3,422 16,018 3,049 ...................................................8 37,009 865 2,655 23,169 830 14,539 25,275 2,816 3,694 15,693 3,072 .................................................15 37,126 849 2,672 23,208 836 14,379 25,204 2,758 3.766 15,614 3,066 .................................................22 37,206 886 2,610 23,323 805 14,480 25,080 2,680 3,825 15,470 3,105.................................................29 37,235 840 2,597 23,341 775 14,591 24,984 2,613 3,954 15,373 3,044 ......................................Oct. 6 37,399 851 2,603 23,383 782 14,738 24,981 2,537 4,080 15,306 3.058 13 37,495 815 2,447 23,424 772 14,562 25,176 2,827 4,036 15,392 2,921.................................................20 37,557 862 2,484 23,476 814 14,702 26,187 2,847 4,055 16,445 2,840 .................................................27 37,615 852 2,342 23,517 753 14,856 26,476 2,912 4,277 16,386 2,901......................................Nov. 3 37,757 830 2,433 23,584 768 14,521 26,421 2,847 4,318 16,383 2,873 .................................................10 37,887 822 2,497 23,595 790 14,787 27,547 2,791 3,398 17.008 4,350 .................................................17 38,025 844 2,585 23,667 806 14,667 27,285 2,622 3,410 16.876 4,377 .................................................24 38,049 855 2,417 23,723 789 14,825 28,298 3,732 3,437 16,719 4,410......................................Dec. 1 38,078 841 2,552 23,760 851 14,920 27,312 2,936 3,478 16,608 4,290 ...................................................8 38,238 886 2,729 23,887 897 15,041 28,280 3,948 3,659 16,514 4,159.................................................15 38,390 936 2,920 23,974 900 15,290 28,003 3,628 3,768 16,399 4,208 .................................................22 38,400 904 3,002 24,117 918 15,406 28,944 4,339 3.766 16,607 4,232 .................................................29 89 103 1 481 67 4 , 12 49 2 ......................................Dec. 29 A For notes see p. A-106. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 104 WEEKLY REPORTING BANKS □ MARCH 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1971—Continued (In millions of dollars) Investments (cont.) Other securities Cash Invest­ Obligations Other bonds, items Re­ Bal­ ments Total of State corp. stock, in serves Cur­ ances in sub­ assets/ Wednesday and and process with rency with sidiar­ Other Total political securities of F.R. and do­ ies not assets liabil­ Total subdivisions collec­ Banks coin mestic consol­ ities tion banks idated Tax Certif. war­ All of All rants 3 other partici­ other5 pation4 Jan. 6...................................... 45,217 6,715 32,384 1,220 4,898 33,290 19,626 3,539 7,205 716 14,638 340,126 13...................................... 45,326 6,795 32,509 1,202 4,820 33,388 18,260 3,733 6,535 717 14,504 335,382 20...................................... 45,144 6,675 32,413 1,178 4,878 31,484 20,562 3,506 6,021 720 14,778 333,039 27...................................... 44,961 6,237 32,629 1,207 4,888 29,753 18,865 3,563 5,664 721 14,476 328,570 Feb. 3...................................... 45,674 6,486 32,919 1,201 5,068 31,869 17,978 3,202 6,365 724 14,894 333,967 10...................................... 46,022 6,688 33,044 1,225 5,065 30,801 16,105 3,381 7,027 723 14,911 332,178 17...................................... 46,130 6,838 32,972 1,229 5,091 36,933 21,808 3,454 7,326 732 14,763 341,522 24...................................... 46,019 6,850 32,981 1,150 5,038 29,520 17,212 3,529 6,416 733 14,497 329,033 Mar. 3...................................... 46,518 6,808 33,347 1,170 5,193 33,232 18,471 3,159 6,662 738 15,018 336,817 10...................................... 46,931 7,088 33,510 1,149 5,184 30,671 18,625 3,307 6,558 737 14,765 332,679 17...................................... 47,486 7,203 33,748 1,185 5,350 33,724 19,508 3,373 6,723 738 14,719 338,404 24...................................... 47,642 7,041 34,036 1,205 5,360 29,639 18,167 3,431 6,368 738 15,314 331,563 47,449 6,898 33,831 1,184 5,536 36,285 19,482 3,327 7,495 738 15,482 342,856 Apr. 48,490 7,294 34,256 1,180 5,760 31,817 17,959 3,158 7,108 735 15,247 340,300 14...................................... 49,003 7,347 34,611 1,190 5,855 36,812 18,041 3,528 7,073 736 15,280 346,530 21...................................... 49,627 7,947 34,570 1,192 5,918 34,086 18,648 3,486 6,403 740 15,211 342,839 49,103 7,762 34,353 1,169 5,819 32,616 19,298 3,560 6,611 741 15,166 338,491 May 49,792 7,849 34,866 1,172 5,905 33,651 21,038 3,127 6,744 756 15,630 343,200 12...................................... 49,461 7,709 34,666 1,201 5,885 32,276 17,961 3,436 7,275 756 15,721 341,895 19...................................... 48,997 7,360 34,673 1,159 5,805 32,058 19,461 3,455 6,345 759 15,595 339,824 48,853 7,388 34,593 1,175 5,697 28,468 19,688 3,569 5,968 756 15,552 333,758 June 2...................................... 49,419 7,828 34,754 1,144 5,693 33,938 18,154 3,459 7,381 757 15,598 342,870 9...................................... 49,520 7,868 34,822 1,124 5,706 31,082 18,855 3,422 6,419 760 15,307 338,135 16...................................... 50,016 7,865 35,262 1,128 5,761 35,329 18,291 3,483 6,896 760 15,374 346,483 49,710 7,814 35,100 1,094 5,702 31,342 18,493 3,551 6,504 766 15,252 339,791 49,698 7,548 35,130 1,319 5,701 38,776 18,187 3,504 7,358 771 15,680 351,061 July 7...................................... 49,702 7,573 35,200 1,335 5,594 36,859 16,966 3,318 7,244 781 15,863 349,712 14...................................... 49,243 7,490 34,942 1,373 5,438 32,470 18,906 3,652 5,938 781 15,360 342,328 21...................................... 49,255 7,521 34,879 1,373 5,482 32,104 20,248 3,564 5,842 782 15,299 341,060 28...................................... 49,742 7,628 35,319 1,350 5,445 31,178 18,369 3,666 5,862 784 15,454 339,445 Aug. 4...................................... 49,693 7,801 34,967 1,364 5,561 31,875 20,057 3,220 6,169 786 15,696 343,221 11...................................... 49,502 7,675 35,089 1,342 5,396 31,516 17,972 3,486 5,577 784 15,685 339,817 18...................................... 48,934 7,466 34,851 1,282 5,335 30,303 18,588 3,494 5,823 786 15,446 340,820 25...................................... 48,974 7,424 34,954 1,260 5,336 29,811 19,311 3,615 5,818 786 15,654 341,394 Sept. 1...................................... 49,307 7,650 35,026 1,285 5,346 33,541 19,383 3,482 6,475 791 15,976 348,526 8..................................... 49,406 7,949 34,865 1,273 5,319 31,971 19,085 3,525 6,677 791 15,828 346,775 15...................................... 50,515 8,380 35,301 1,339 5,495 36,268 17,805 3,608 6,919 794 15,734 355,654 49,962 8,065 35,147 1,310 5,440 33,213 18,468 3,641 6,002 796 15,647 348,439 50,080 8,091 35,246 1,315 5,428 32,231 18,741 3,704 6,243 799 15,798 348,760 Oct. 6...................................... 50,791 8,369 35,703 1,314 5,405 33,254 18,741 3,329 7,054 802 15,702 350,200 13..................................... 50,717 8,424 35,441 1,333 5,519 35,609 19,749 3,690 7,042 803 15,465 354,767 50,533 8,187 35,390 1,352 5,604 34,209 18,040 3,644 6,774 813 15,399 349,780 51,022 8,311 35,673 1,399 5,639 35,312 20,826 3,778 6,526 814 15,429 353,372 Nov. 51,446 8,598 35,857 1,389 5,602 40,042 18,946 3,481 7,405 817 15,656 362,181 10...................................... 51,536 8,375 35,844 1,454 5,863 31,370 17,925 3,532 6,885 817 15,488 351,460 51,109 8,015 35,766 1,462 5,866 31,598 19,681 3,601 7,059 819 15,099 352,663 50,837 7,846 35,671 1,452 5,868 33,553 22,152 3,508 7,294 819 15,121 355,298 Dec. 51,646 8,106 36,194 1,509 5,837 35,306 16,899 3,744 8,429 833 15,667 359,467 51,845 8,289 36,302 1,497 5,757 31,358 19,190 3,696 7,747 848 15,825 354,672 52,621 8,452 36,855 1,541 5,773 37,590 17,706 3,867 8,205 849 15,614 367,029 22...................................... 52,282 8,322 36,663 1,518 5,779 34,895 18,592 3,838 7,545 849 16,175 364,149 52,089 8,076 36,655 1,534 5,824 32,565 22,465 4,173 7,326 857 16,253 367,364 ^ Dec. 29 .................................. 136 5 92 5 34 19 12 13 47 32 688 For notes see p. A-106. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ WEEKLY REPORTING BANKS A 105 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1971—Continued (In millions of dollars) Deposits Demand Time and savings1 Domestic interbank Foreign IPC States States Wednesday and Certi­ and Do­ polit­ fied polit­ mes­ For­ Total IPC ical U.S. and Total6 ical tic eign sub­ Govt. Com­ Mutual Com­ offi­ sub­ inter­ govts.2 divi­ mer­ sav­ Govts., mer­ cers’ Sav­ Other divi­ bank sions cial ings etc.2 cial checks ings sions banks 147,456 102,523 6,996 4,101 22,981 788 780 2,359 6,928 120,810 48,801 52,491 13,387 1,289 4,372 ............Jan. 6 142,365 99,341 6,307 3,009 21,967 763 827 2,411 7,740 121,956 48,834 53,293 13,504 1,531 4,331 .13 139,595 97,026 6,114 4,994 20,396 662 850 2,483 7,070 122,741 48,974 53,616 13,813 1,579 4,299 .20 138,251 94,851 6,460 6,599 19,649 636 872 2,286 6,898 123,072 49,145 53,756 13,905 1,585 4,253 .27 141,118 94,417 7,179 6,766 21,460 700 789 2,332 7,475 123,599 49,455 53,719 14,159 1,564 4,253 .............Feb. 3 137,735 93,071 6,642 4,893 21,926 663 799 2,380 7,361 124,539 49,792 54,249 14,332 1,573 4,129 .10 145,511 98,303 7,045 5,246 22,949 735 836 2,505 7,892 124,737 50,140 54,389 14,164 1,568 3,974 ,17 135,248 93,728 6,483 4,332 20,178 608 796 2,319 6,804 125,800 50,458 54,864 14,506 1,541 3,930 24 141,127 96,043 6,693 4,944 22,253 639 770 2,229 7,556 127,043 51,023 55,385 14,685 1,581 3,859 3 136,350 95,173 6,264 3,080 20,814 616 742 2,360 7,301 128,105 51,544 55,947 14,666 1,586 3,823 .10 140,449 97,508 6,181 3,950 21,309 644 734 2,380 7,743 128,975 52,025 56,008 14,659 1,569 4,166 .17 134,078 95,117 6,469 2,144 19,647 594 740 2,243 7,124 129,029 52,379 55,842 14,608 1,579 4,110 .24 146,456 99,253 6,957 2,889 24,703 785 805 2,271 8,793 129,128 52,973 55,514 14,498 1,545 4,079 .31 140,700 97,898 6,409 1,971 22,666 829 764 2,324 7,839 128,799 53,083 55,171 14,424 1,526 4,084 7 146,284 101,985 6,419 2,717 21,466 725 863 2,225 9,884 128,678 53,027 54,927 14,557 1,513 4,150 .14 143,976 98,472 6,380 5,483 22,070 662 794 2,214 7,901 128,584 53,021 54,290 15,066 1,568 4,160 .21 141,474 97,099 6,353 5,833 20,750 631 778 2,329 7,701 129,293 53,044 54,779 15,229 1,570 4,161 .28 143,385 96,055 7,674 5,685 21,760 714 828 2,370 8,299 129,488 53,159 54,859 15,205 1,595 4,178 5 142,094 96,567 6,654 6,653 21,083 652 877 2,291 7,317 129,741 53,259 55,020 15,316 1,529 4,117 12 139,272 96,205 6,549 5,114 20,320 635 793 2,176 7,480 130,518 53,397 55,376 15,285 1,563 4,391 19 136,097 95,925 6,249 5,317 18,615 841 765 2,214 6,171 131,099 53,434 55,645 15,384 1,578 4,553 .26 143,627 100,713 7,228 2,718 22,042 677 813 2,327 7,109 131,110 53,535 55,720 15,234 1,572 4,535 2 136,508 96,525 6,014 1,517 20,947 646 807 2,236 7,816 131,793 53,524 56,465 15,157 1,615 4,531 9 145,450 100,438 6,801 4,717 21,983 628 803 2,262 7,818 130,778 53,476 55,553 14,926 1,637 4,678 .16 138,625 97,162 6,558 3,280 20,460 594 752 2,384 7,435 131,394 53,429 56,135 14,964 1,687 4,685 23 152,972 102,131 7,632 5,332 24,967 794 745 2,404 8,967 131,856 53,644 56,451 14,742 1,782 4,736 30 148,574 100,871 6,463 5,081 24,032 851 829 2,512 7,935 131,598 53,497 56,316 14,865 1,647 4,775 7 141,186100,266 6,017 3,396 20,398 715 731 2,415 7,248 132,058 53,314 56,764 14,970 1,614 4,859 14 140,680 98,066 5,812 4,907 20,525 651 716 2,402 7,601 132,318 53,303 56,859 15,034 1,627 4,968 21 139,736 97,285 6,158 3,901 20,844 621 762 2,368 7,797 132,932 53,140 57,172 15,276 1,601 5,197 .28 139,404 97,190 6,620 2,890 21,489 703 760 2,358 7,394 132,924 53,133 57,472 15,067 1,566 5,144 ............Aug. 4 138,109 96,119 6,611 2,333 21,126 617 1,283 2,298 7,722 133,179 53,113 57,708 15,111 1,536 5,208 .11 139,164 96,218 6,212 6,001 20,164 620 949 2,461 6,539 133,494 53,070 58,082 15,068 1,597 5,173 .18 139,672 95,700 6,062 6,272 20,562 608 803 2,416 7,249 133,827 52,986 58,184 15,258 1,691 5,195 .25 145,012 99,588 6,601 4,838 21,934 604 835 2,543 8,069 134,070 52,969 58,417 15,285 1,721 5,173 1 141,702 97,871 6,377 4,242 22,287 661 807 2,399 7,058 134,361 53,039 58,562 15,258 1,746 5,234 8 149,396 103,322 6,518 4,928 22,537 606 883 2,449 8,153 133,811 53,008 58,091 15,182 1,826 5,201 .15 142,345 97,646 6,262 5,145 21,850 559 747 2,374 7,762 134,798 53,099 58,653 15,324 1,904 5,323 22 141,160 96,333 6,368 5,647 21,200 641 764 2,416 7,791 136,161 53,313 59,737 15,411 1,997 5,249 .29 142,194 97,663 6,570 3,088 23,307 824 783 2,330 7,629 136,739 53,486 59,984 15,506 2,092 5,226 6 143,537 100,823 5,864 2,460 22,839 745 850 2,340 7,616 137,207 53,498 60,424 15,480 2,124 5,230 .13 141,925 99,180 5,970 2,815 22,862 666 796 2,305 7,331 137,167 53,583 60,250 15,608 2,127 5,158 .20 144,435 100,492 6,112 3,551 22,730 725 830 2,432 7,563 137,160 53,605 60,294 15,571 2,109 5,142 .27 150,019 101,233 7,205 2,811 25,319 832 789 2,448 9,382 136,746 53,691 60,127 15,347 1,967 5,176 3 138,824 98,517 6,538 1,622 21,513 683 720 2,326 6,905 136,956 53,805 60,128 15,393 1,980 5,212 10 140,199 100,108 6,387 2,362 21,270 625 748 2,491 6,208 137,429 53,948 60,399 15,404 2,039 5,201 .17 141,548 99,624 6,388 2,231 22,096 579 718 2,596 7,316 137,979 54,022 60,874 15,427 2,096 5,130 .24 149,106 103,293 7,196 2,237 24,305 622 901 2,755 7,797 138,217 54,124 60,890 15,588 2,083 5,095 1 142,761 100,478 6,262 1,770 22,775 665 779 2,533 7,499 138,861 54,034 61,475 15,717 2,135 5,064 . 8 155,695 107,563 6,960 5,021 23,746 611 852 2,322 8,620 138,813 54,167 60,550 16,562 2,091 5,010 .15 152,295 105,978 6,913 6,313 21,904 585 789 2,387 7,426 139,921 54,214 60,924 17,229 2,109 5,000 .22 152,699 106,885 6,563 7,571 20,880 636 962 2,402 6,800 140,932 54,542 61,274 17,550 2,129 4,973 .29 276 250 9 5 1 4 7 325 195 111 19 29 4 For notes see p. A-106. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 106 WEEKLY REPORTING BANKS □ MARCH 1972 ASSETS AND LIABILITIES OF LARGE COMMERCIAL BANKS, 1971—Continued (In millions of dollars) Borrowings Reserves from— for— Memoranda Fed­ Large negotiable eral Other Total Total time CD’s Gross Wednesday c f e h p u t a u n c s r d . e ­ 7 s d B F a . n R k . s Others li e t a i t b e c s . i l , 8 i­ Loans S i e ti c e u s r­ c co a a p u c i n ­ t t a s l j ( u T l g o s a r o t a o d e t n s a ­ d s s l ) 9 ( u i m n l g s o a a r v t e n e a o d e n d n d s - s t ® s s t s ) ­ j d u m e s D p a t a e o d e n d s ­ ­ d i 1 t s o T a o n t d a i l n s c a l v u i d I n s e g s t d o s u e d in d e p ti o m I s s i e s t t u o s1 e 1 d b f l t b o r i i t e a a a h r t s e b n n o e i i k c i o g l r h s i n f ­ ­ IPC’s others es Jan. 6.......................... 20,014 258 1,364 21,391 4,012 75 24,746 178,834 252,682 87,084 26,231 17,141 9,090 7,438 13.......................... 19,012 245 1,329 21,635 4,059 72 24,709 176,496 250,151 84,001 26,979 17,640 9,339 7,861 20.......................... 17,905 1,445 1,216 21,319 4,059 77 24,682 175,120 248,613 82,721 27,210 17,747 9,463 7,823 27.......................... 16,700 674 1,157 19,898 4,062 77 24,679 175,175 248,404 82,250 27,140 17,669 9,471 6,535 Feb. 3.......................... 19,044 218 1,034 19,940 4,070 79 24,865 176,589 250,839 81,023 26,925 17,427 9,498 6,432 10.......................... 19,049 236 968 20,644 4,071 79 24,857 176,626 250,907 80,115 27,343 17,768 9,575 6,234 17.......................... 19,891 1,499 964 19,934 4,069 81 24,836 175,009 248,901 80,383 27,146 17,715 9,431 5,871 24.......................... 18,037 227 933 19,770 4,070 80 24,868 175,599 249,211 81,218 27,422 17,936 9,486 5,667 Mar. 3.......................... 19,176 245 887 19,158 4,077 81 25,023 176,554 251,294 80,698 27,748 18,108 9,640 5,018 10.......................... 17,882 1,502 829 18,740 4,078 80 25,112 176,076 251,130 81,785 28,100 18,487 9,613 4,807 17.......................... 19,692 551 828 18,676 4,076 80 25,077 176,631 251,826 81,466 28,315 18,400 9,915 4,177 24.......................... 18,482 795 865 19,074 4,078 80 25,082 176,196 250,884 82,648 28,058 18,173 9,885 4,329 31.......................... 18,854 377 828 17,772 4,059 79 25,303 177,200 252,709 82,579 27,458 17,623 9,835 2,858 Apr. 7.......................... 21,853 167 1,058 18,157 4,054 81 25,431 179,040 255,910 84,246 27,238 17,397 9,841 3,260 14.................... 23,648 212 1,067 17,149 4,047 82 25,363 178,632 256,022 85,289 27,173 17,349 9,824 2,317 21.......................... 23,428 78 1,024 16,324 4,044 82 25,299 177,703 255,405 82,337 26,676 16,626 10,050 2,253 28.......................... 20,111 694 932 16,509 ’ 4,045 83 25,350 177,164 252,836 82,275 27,153 17,010 10,143 2,158 May 5.......................... 22,448 748 997 16,444 4,048 85 25,557 177,925 254,223 82,289 27,061 16,934 10,127 2,004 12.......................... 23,559 15 1,061 15,752 4,032 86 25,555 179,663 255,278 82,082 27,118 17,014 10,104 1,598 19.......................... 22,380 920 995 16,150 4,030 85 25,474 179,295 253,523 81,780 27,541 17,182 10,359 1,628 26.......................... 18,744 1,235 995 16,002 4,020 84 25,482 178,627 253,048 83,697 28,003 17,296 10,707 1,579 June 2.......................... 21,347 16 922 16,031 4,032 83 25,702 179,986 254,858 84,929 27,926 17,245 10,681 1,877 9.......................... 22,380 560 898 16,167 4,030 83 25,716 178,563 253,649 82,962 28,760 17,702 11,058 1,938 16.......................... 22,601 201 914 16,836 4,010 95 25,598 181,892 257,494 83,421 27,811 16,988 10,823 2,323 23.......................... 21,531 513 919 17,082 4,020 83 25,624 180,884 255,646 83,543 28,393 17,409 10,984 2,323 30.......................... 19,048 353 972 15,952 3,997 78 25,833 182,817 259,152 83,897 28,460 17,450 11,010 1,512 July 7.......................... 21,656 376 1,305 16,079 3,990 79 26,055 183,223 260,035 82,602 28,491 17,423 11,068 2,083 14.......................... 20,823 1,697 1,075 15,417 3,988 76 26,008 181,804 257,660 84,922 29,252 17,991 11,261 1,730 21.......................... 20,137 1,382 1,014 15,484 4,006 76 25,963 180,897 256,088 83,144 29,492 18,085 11,407 1,879 28.......................... 20,073 642 1,015 14,976 4,012 76 25,983 180,734 255,872 83,813 30,233 18,383 11,850 1,505 Aug. 4.......................... 23,195 552 1,146 15,750 4,013 76 26,161 181,719 256,594 83,150 30,428 18,569 11,859 1,912 11.......................... 21,657 454 1,140 14,997 4,012 113 26,156 181,567 256,099 83,134 30,750 18,783 11,967 1,104 18.......................... 20,827 1,017 1,058 15,043 4,011 77 26,129 183,580 257,520 82,696 31,302 19,239 12,063 1,374 25.......................... 19,499 1,692 1,203 15,269 4,008 77 26,147 183,980 257,906 83,027 31,512 19,273 12,239 1,409 Sept. 1.......................... 22,042 829 1,173 15,019 4,001 76 26,304 185,358 259,586 84,699 31,572 19,368 12,204 1,237 8.......................... 23,520 273 1,104 15,468 4,003 77 26,267 184,911 259,389 83,202 31,828 19,640 12,188 1,243 15.......................... 24,744 286 1,146 15,959 4,002 75 26,235 188,329 264,119 85,663 31,309 19,145 12,164 1,704 22.......................... 22,774 820 1,113 16,335 3,990 89 26,175 186,432 261,598 82,137 32,075 19,652 12,423 2,143 29.......................... 22,989 209 1,132 16,788 4,004 89 26,228 186,256 261,416 82,082 32,959 20,594 12,365 2,476 Oct. 6.......................... 23,356 125 1,108 16,086 4,002 89 26,501 186,288 262,063 82,545 33,268 20,723 12,545 2,224 13.......................... 25,181 939 1,037 16,321 4,003 89 26,453 186,622 262,320 82,629 33,847 21,227 12,620 2,724 20.......................... 22,230 428 1,051 16,496 3,998 89 26,396 186,701 262,410 82,039 33,637 21,034 12,603 2,523 27.......................... 21,642 1,906 1,050 16,581 4,004 89 26,505 186,003 263,212 82,842 33,603 21,081 12,522 2,915 Nov. 3.......................... 27,002 179 1,120 16,350 4,011 90 26,664 187,650 265,572 81,847 33,166 20,734 12,432 2,443 10.......................... 26,992 168 1,042 16,678 4,026 69 26,705 187,358 265,315 84,319 33,339 20,845 12,494 2,964 17.......................... 25,816 333 1,083 17,116 4,019 77 26,591 186,647 265,303 84,969 33,597 21,139 12,458 3,363 24.......................... 24,935 2,236 1,019 16,927 4,012 75 26,567 186,181 264,303 83,668 34,000 21,483 12,517 3,342 Dec. 1.......................... 23,698 24 1,034 16,547 4,024 76 26,741 188,924 268,868 87,258 33,880 21,317 12,563 2,408 8.......................... 25,305 66 1,053 15,741 4,003 90 26,792 187,424 266,581 86,858 34,317 21,714 12,603 1,867 15.......................... 25,158 8 1,040 15,520 4,009 77 26,709 191,863 272,764 89,338 33,292 20,862 12,430 1,386 22.......................... 23,644 793 1,038 15,769 3,995 76 26,618 191,820 272,105 89,183 33,746 21,203 12,543 1,544 29.......................... 26,046 1,249 1,020 14,762 3,895 77 26,684 192,238 273,271 91,683 33,951 21,282 12,669 909 ^ Dec. 29.......................... 1 4 21 4 57 349 552 251 ► These amounts represent accumulated adjustments originally made 6 Includes U.S. Govt, and foreign bank deposits, not shown separately. to offset the cumulative effect of mergers. 7 Includes securities sold under agreements to repurchase. 8 Includes minority interest in consolidated subsidiaries. 1 Includes securities purchased under agreements to resell. 9 Exclusive of loans and Federal funds transactions with domestic com­ 2 Includes official institutions and so forth. mercial banks. 3 Includes short-term notes and bills. I o All demand deposits except U.S. Govt, and domestic commercial 4 Federal agencies only. banks, less cash items in process of collection. 5 Includes corporate stock. II Certificates of deposit issued in denominations of $100,000 or more Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BUSINESS LOANS OF BANKS, 1971 A 107 “TERM” COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) 1971 Industry Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Durable goods manufacturing: Primary metals..................................................... 1,543 1,563 1,629 1,621 1,665 1,586 1,534 1,481 1,524 1,495 1,406 1,362 Machinery............................................................. 2,663 2,631 2,588 2,733 2,591 2,536 2,511 2,505 2,479 2,476 2,396 2,285 Transportation equipment................................ 1,647 1,633 1,613 1,515 1,440 1,559 1,552 1,582 1,689 1,626 1,592 1,620 Other fabricated metal products..................... 748 745 732 768 804 814 802 804 775 743 707 713 Other durable goods.......................................... 1,109 1,224 1,217 1,193 1,202 1,233 1,239 1,269 1,214 1,204 1,162 1,135 Nondurable goods manufacturing: Food, liquor, and tobacco................................ 946 967 970 979 916 968 946 938 985 971 1,010 1,021 Textiles, apparel, and leather........................... 674 659 617 592 609 597 597 609 607 585 577 576 Petroleum refining............................................... 1,190 1,142 914 932 919 891 901 841 857 900 867 892 Chemicals and rubber........................................ 1,793 1,827 1,843 1,815 1,719 1,817 1,821 1,809 1,785 1,654 1,528 1,441 Other nondurable goods.................................... 1,115 1,115 1,099 1,065 1,057 1,020 1,008 1,006 1,018 1,047 1,018 1,024 Mining, including crude petroleum and natural gas...................................................................... 3,352 3,268 3,120 3,087 3,056 2,990 3,017 3,000 2,934 3,021 2,998 3,039 Trade: i Commodity dealers............................................. 79 79 80 81 88 97 1011 117 109 116 104 115 Other wholesale................................................... 777 748 776 807 804 836 845 834 847 862 860 893 Retail...................................................................... 1,444 1,452 1,411 1,398 1,417 1,414 1,416 1,450 1,471 1,475 1,429 1,383 Transportation, communication, and other 1 public utilities: Transportation..................................................... 4,714 4,746 4,850 4,739 4,664 4,597 4,596 4,471 4,571 4,444 4,448 4,440 Communication................................................... 398 398 402 426 439 468 471 422 420 418 427 427 Other public utilities........................................... 1,028 1,055 972 990 1,037 1,094 1 ,141 1,180 1,272 1 ,304 1,292 1,316 Construction............................................................. 1,036 1,049 1,080 1,149 1,174 1,187 1,225 1,202 1,192 1,240 1,255 1,244 Services...................................................................... 3,175 3,143 3,134 3,242 3,181 3,258 3,237 3,311 3,347 3,397 3,438 3,488 All other domestic loans....................................... 1,348 1,321 1 ,270 1,225 1,261 1,249 1,311 1,362 1,390 1,390 1,413 1,431 Foreign commercial and industrial loans.......... 1,723 1,716 1,792 1,840 1,882 1,892 1,908 1,950 1,892 1,940 1,956 2,076 Total loans........................................................ 32,502 32,481 32,109 32,197 31,925 32,103 32,179 32,143 32,378 32,308 31,883 31,921 Note.—Figures are for the last Wednesday of the month. COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS (In millions of dollars) 1971 Industry 1 I Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. f Dec. Durable goods manufacturing: Primary metals..................................................... 2,158 2,149 2,288 2,306 2,310 2,350 2,244 2,148 2,179 2,169 2,158 2,063 Machinery............................................................. 5,331 5,324 5,262 5,288 5,334 5,302 5,297 5,176 5,076 4,810 4,586 4,458 Transportation equipment................................ 2,901 2,849 2,877 2,693 2,624 2,686 2,695 2,648 2,730 2,724 2,656 2,662 Other fabricated metal products..................... 1,906 1,898 1,959 2,002 2,020 2,088 2,088 2,084 2,033 1,932 1,787 1,727 Other durable goods.......................................... 2,506 2,538 2,664 2,698 2,748 2,796 2,836 2,821 2,834 2,803 2,674 2,569 Nondurable goods manufacturing: Food, liquor, and tobacco................................ 2,872 2,670 2,632 2,519 2,359 2,328 2,389 2,417 2,623 2,708 2,748 2,869 Textiles, apparel, and leather........................... 2,214 2,306 2,456 2,483 2,494 2,558 2,620 2,694 2,660 2,543 2,468 2,380 Petroleum refining............................................... 1,449 1,414 1,349 1,163 1,175 1,153 1,124 1,073 1,122 1,143 1,092 1,132 Chemicals and rubber........................................ 2,748 2,760 2,807 2,818 2,824 2,793 2,823 2,717 2,691 2,530 2,398 2,308 Other nondurable goods.................................... 1,906 1,896 1,900 1,857 1,850 1,864 1,845 1,856 1,895 1,880 1,825 1,811 Mining, including crude petroleum and natural gas....................................................................... 3,991 3,958 3,895 3,824 3,805 3,767 3,748 3,733 3,800 3,846 3,758 3,792 Trade: Commodity dealers............................................. 1,364 1,347 1,303 1,262 1,145 1,165 1,173 1,150 1,254 1,274 1,458 1,655 Other wholesale................................................... 3,606 3,626 3,705 3,761 3,880 3,914 3,962 4,013 4,242 4,331 4,332 4,398 Retail...................................................................... 4,024 4,038j 4,155 4,282 4,369 4,396 4,382 4,415 4,379 4,521 4,582 4,404 Transportation, communication, and other public utilities: Transportation..................................................... 6,150 6,147 6,243 6,100 6,022 5,969 5,883 5,678 5,661 5,627 5,618 5,628 Communication................................................... 1,428 1,426 1,378 1,404 1 ,421 1,481 1,590 1,572 1,555 1,411 1,395 1 ,343 Other public utilities........................................... 2,430 2,366 2,146 1,998 1,982 2,105 2,328 2,368 2,455 2,572 2,732 2,716 Construction............................................................. 3,415 3,440 3,536 3,658 3,735 3,776 3,674 3,664 3,723 3,762 3,805 3,782 Services...................................................................... 7,382 7,260 7,195 7,368 7,408 7,528 7,610 7,597 7,599 7,556 7,638 7,764 All other domestic loans....................................... 4,731 4,708 4,728 4,745 4,845 4,885 5,082 5,088 5,312 5,378 5,390 5,525 Bankers’ acceptances.............................................. 1,614 1,595 1,584 1.484 1,440 1,247 1,069 1,306 1 ,567 1,709 1,784 2,072 Foreign commercial and industrial loans.......... 2,309 2,350 2,490 2.485 2,629 2,693 2,700 2,868 3,007 2,965 2,945 3,126 Total classified loans.............................................. 68,435 68,065 68,552 68,198 68,419 68,844 69,162 69,086 70,397 70,194 69,829 70,184 Total commercial and industrial loans of large commercial banks........................................... 80,868 80,510 81,326 81,101, 81,501 82,009 82,000 81,860 83,178 83,126 82,860 83,420 For Wednesday figures and Note, see following two pages. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 108 BUSINESS LOANS OF BANKS, 1971 □ MARCH 1972 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Wednesday Industry Jan. Jan. Jan. Jan. Feb. Feb. Feb. Feb. Mar. Mar. Mar. Mar. Mar. 6 13 20 27 3 10 17 24 3 10 17 24 31 Durable goods manufacturing: Primary metals..................................... 2,195 2,158 2,158 2,122 2,122 2,137 2,159 2,177 2,216 2,285 2,297 2,324 2,316 Machinery............................................. 5,308 5,386 5,384 5,244 5,298 5,327 5,326 5,345 5,268 5,374 5,310 5,181 5,177 Transportation equipment................. 2,896 2,893 2,908 2,904 2,862 2,869 2,868 2,797 2,886 2,892 2,908 2,859 2,838 Other fabricated metal products . .. 1,928 1,938 1,910 1,849 1,887 1,894 1,904 1,905 1,940 1,935 1,966 1,979 1,973 Other durable goods........................... 2,550 2,536 2,483 2,454 2,495 2,512 2,536 2,609 2,617 2,627 2,691 2,686 2,700 Nondurable goods manufacturing: Food, liquor, and tobacco................. 3,012 2,873 2,848 2,757 2,724 2,670 2,648 2,638 2,672 2,669 2,659 2,600 2,561 Textiles, apparel, and leather............ 2,240 2,232 2,195 2,189 2,202 2,252 2,369 2,401 2,406 2,443 2,478 2,471 2,482 Petroleum refining............................... 1,469 1,439 1,449 1,438 1,431 1,429 1,418 1,380 1,401 1,414 1,379 1,369 1,183 Chemicals and rubber......................... 2,800 2,761 2,771 2,662 2,710 2,774 2,774 2,783 2,782 2,801 2,816 2,823 2,813 Other nondurable goods.................... 1,903 1,922 1,909 1,892 1,911 1,893 1,896 1,886 1,899 1,886 1,919 1,907 1,889 Mining, including crude petroleum and natural gas..................................... 4,014 3,935 4,007 4,008 3,948 3,938 3,965 3,982 3,910 3,897 3,886 3,890 3,894 Trade: Commodity dealers.................... 1,360 1,363 1,362 1,373 1,377 1,371 1,328 1,312 1,301 1,277 1,318 1,300 1,318 Other wholesale.......................... 3,654 3,606 3,596 3,567 3,633 3,603 3,647 3,622 3,666 3,690 3,735 3,733 3,702 Retail............................................ 4,043 3,949 4,091 4,013 4,016 4,011 4,049 4,074 4,144 4,114 4,174 4,135 4,209 Transportation, communication, & other public utilities: Transportation...................................... 6,191 6,168 6,118 6,124 6,145 6,158 6,150 6,136 6,227 6,187 6,248 6,273 6,278 Communication.................................... 1,436 1,425 1,431 1,419 1,452 1,419 1,421 1,414 1,377 1,369 1,375 1,412 1,355 Other public utilities........................... 2,450 2,446 2.453 2,371 2,403 2,330 2,348 2,384 2,298 2,158 2,180 2,075 2,019 Construction.............................................. 3,395 3,428 3,429 3,409 3,421 3,418 3,460 3,463 3,504 3,515 3,535 3,547 3,580 Services....................................................... 7,417 7,420 7,377 7,315 7,283 7,256 7,258 7,242 7,206 7,169 7,190 7,201 7,207 All other domestic loans........................ 4,811 4,752 4,717 4,643 4,654 4,757 4,751 4,668 4,732 4,733 4,758 4,672 4,748 Bankers’ acceptances............................... 1,694 1,656 1,602 1,506 1,565 1,582 1,598 1,636 1,595 1,659 1,570 1,570 1,525 Foreign commercial & industrial loans 2,252 2.301 2,283 2,395 2,319 2,294 2,382 2,400 2,416 2,458 2,512 2,520 2,545 Total classified loans............................... 69,018 68; 587 68,481 67,654 67,858 67,894 68,255 68,254 68,463 68,552 68,904 68,527 68,312 Total commercial & industrial loans of large commercial banks................ 81,150 81,025 80,918 80,017 80,260 80,306 80,715 80,760 81,068 81,188 81,794 81,419 81,162 Wednesday Industry Apr. Apr. Apr. Apr. May May May May June June June June June 7 14 21 28 5 12 19 26 2 9 16 23 30 Durable gooas manufacturing: Primary metals.................................... 2,306 2,302 2,299 2,317 2,315 2,295 2,309 2,320 2,314 2,360 2,417 2,370 2,291 Machinery............................................. 5,230 5,275 5,355 5,290 5,302 5,384 5,353 5.299 5,283 5,260 5,428 5,328 5,211 Transportation equipment................ 2,742 2,724 2,674 2,631 2,624 2,632 2,616 2,626 2,610 2,636 2,732 2,715 2,739 Other fabricated metal products. .. 1,954 2,004 2,030 2,018 2,012 2,024 2,023 2,019 2,042 2,049 2,124 2,122 2,105 Other durable goods.......................... 2,704 2,674 2,710 2,704 2,740 2,766 2,747 2,741 2,743 2,773 2,846 2,805 2,812 Nondurable goods manufacturing: Food, liquor, and tobacco............... 2,548 2,487 2.545 2,494 2,394 2,343 2,383 2,317 2,324 2,253 2,307 2,362 2,395 Textiles, apparel, and leather........... 2,497 2,510 2,479 2,445 2,496 2,513 2,494 2,474 2,521 2,516 2,587 2,568 2,597 Petroleum refining.............................. 1,160 1,155 1,156 1,182 1,147 1,189 1,181 1,181 1,169 1,168 1,161 1,143 1,122 Chemicals and rubber....................... 2,795 2,827 2,826 2,823 2,836 2,869 2,827 2,766 2,742 2,776 2,813 2,786 2,846 Other nondurable goods................... 1,858 1,862 1,863 1,844 1,832 1,865 1,850 1,852 1,863 1,848 1,866 1,883 1,858 Mining, including crude petroleum and natural gas.................................... 3,840 3,809 3,825 3,820 3,810 3,789 3,801 3,821 3,798 3,776 3,816 3,827 3,620 Trade: Commodity dealers................... 1,322 1,297 1,234 1,197 1,131 1,158 1,159 1,132 1,176 1,160 1,177 1,166 1,144 Other wholesale......................... 3,744 3,765 3,768 3,768 3,839 3,904 3,909 3,868 3,912 3,879 3,944 3,927 3,909 Retail............................................ 4,292 4,296 4,276 4,262 4,392 4,261 4,423 4,400 4,406 4,291 4,416 4,484 4,381 Transportation, communication, & other public utilities: Transportation.................................... 6,135 6,135 6,061 6,067 6,015 5,981 6,026 6,066 6,055 5,919 5,949 5,953 5,970 Communication................................... 1,359 1,396 1,439 1,422 1,356 1,424 1,463 1,441 1,448 1,421 1,481 1,514 1,539 Other public utilities.......................... 2,004 1,962 2,030 1,996 2,032 1,981 1,953 1,961 2,076 2,049 2,073 2,128 2,201 Construction............................................. 3,621 3,662 3,700 3,650 3,712 3,709 3,751 3,767 3,775 3,796 3,841 3,832 3,634 Service........................................................ 7,305 7,337 7,399 7,432 7,474 7,371 7,409 7,380 7,431 7,492 7,538 7,592 7,585 All other domestic loans....................... 4,656 4,751 4,766 4,809 4,851 4,882 4,874 4,774 4,789 4,800 4,895 4,898 5,044 Bankers’ acceptances.............................. 1,540 1,500 1,448 1,453 1,502 1,488 1,413 1,355 1,356 1,326 1,248 1,170 1,136 Foreign commercial & industrial loans. 2,471 2,482 2,459 2,530 2,476 2,677 2,660 2,698 2,750 2,670 2,725 2,674 2,647 Total classified loans.............................. 68,083 68,212 68,342 68,154 68,288 68,505 68,624 68,258 68,583 69,218 69,384 69,247 68,786 Total commercial & industrial loans of large commercial banks................ 80,976 81,101 81,255 81,072 81,299 81,621 81,715 81,370 81,703 81,292 82,556 82,338 82,156 For Note see facing page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

MARCH 1972 □ BUSINESS LOANS OF BANKS, 1971 A 109 COMMERCIAL AND INDUSTRIAL LOANS OF LARGE COMMERCIAL BANKS—Continued (In millions of dollars) Wednesday Industry July July July July Aug. Aug. Aug. Aug. Sept. Sept. Sept. Sept. Sept. 7 14 21 28 4 11 18 25 1 8 15 22 29 Durable goods manufacturing: 2,278 2,258 2,242 2,199 2,182 2,140 2,136 2,132 2,157 2,149 2,212 2,208 2,171 5,346 5,380 5,265 5,196 5,198 5,191 5,210 5,104 5,075 5,092 5,131 5,101 4,980 Transportation equipment................ 2,717 2,712 2,710 2,642 2,666 2,655 2,641 2,628 2,644 2,650 2,824 2,770 2,763 Other fabricated metal products---- 2,097 2,102 2,092 2,063 2,077 2,117 2,089 2,055 2,035 2,043 2,086 2,028 1,975 Other durable goods........................... 2,822 2,854 2,838 2,830 2,835 2,812 2,819 2,819 2,810 2,833 2,865 2,839 2,823 Nondurable goods manufacturing: Food, liquor, and tobacco;............. 2,407 2,370 2,400 2,378 2,393 2,370 2,425 2,481 2,509 2,570 2,636 2,713 2,688 Textiles, apparel, and leather........... 2,621 2,608 2,610 2,643 2,659 2,684 2,723 2,710 2,739 2,697 2,694 2,602 2,566 Petroleum refining.............................. 1,139 1,124 1,106 1,129 1,084 1,074 1,065 1,068 1,121 1,104 1,127 1,141 1,118 Chemicals and rubber........................ 2.869 2,826 2,826 2,770 2,749 2,712 2,706 2,701 2,697 2,666 2,715 2,684 2,691 Other nondurable goods................... 1,841 1,850 1,842 1,846 1,846 1,863 1,860 1,857 1,859 1,859 1,915 1,926 1,918 Mining, including crude petroleum and natural gas.................................... 3,736 3,757 3,726 3,771 3,696 3,737 3,746 3,752 3,762 3,762 3,826 3,825 3,824 Trade: Commodity dealers................... 1,204 1,154 1,178 1,156 1,128 1,118 1,158 1,197 1,242 1,256 1,290 1,265 1,216 Other wholesale......................... 3,948 3,967 3,963 3,970 3,961 3,972 4,023 4,096 4,219 4,201 4,225 4,264 4,301 Retail............................................ 4,379 4,390 4,392 4,365 4,460 4,407 4,408 4,385 4,329 4,341 4,332 4,432 4,462 Transportation, communication, & other public utilities: Transportation..................................... 5,904 5,902 5,867 5,860 5,712 5,683 5,658 5,658 5,643 5,608 5,628 5,703 5,724 1,620 1,624 1,579 1,536 1,606 1,598 1,555 1,531 1,558 1,534 1,538 1,584 1,563 Other public utilities........................... 2,311 2,323 2,339 2,341 2,436 2,373 2,339 2,324 2,405 2,403 2,429 2,487 2,550 Construction............................................. 3,663 3,666 3,683 3,685 3,647 3,656 3,656 3,697 3,691 3,686 3,745 3,753 3 740 7,619 7,610 7,625 7,585 7,592 7,610 7,606 7,580 7,608 7,577 7,609 7,601 7,598 All other domestic loans....................... 5,095 5,091 5,076 5,066 5,042 5,021 5,106 5,185 5,262 5,328 5,308 5,313 5,349 Bankers’ acceptances.............................. 1,106 1,081 1,047 1,042 1,075 1,069 1,524 1,554 1,537 1,601 1,544 1,556 1,598 Foreign commercial & industrial loans 2,730 2,685 2,705 2,678 2,729 2,737 2,958 3,045 3,034 3,012 3,055 2,961 2,971 Total classified loans.............................. 69,452 69,334 69,111 68,751 68,773 68,599 69,411 69,559 69,936 69,972 70,734 70,756 70,589 Total commercial and industrial loans. 82,461 82,204 81,849 81,488 81,528 81,356 82,248 82,310 82,671 82,633 83,560 83,589 83,435 Wednesday Industry Oct. Oct. Oct. Oct. Nov. Nov. Nov. Nov. Dec. Dec. Dec. Dec. Dec. 6 13 20 27 3 10 17 24 1 8 15 22 29 Durable goods manufacturing: Primary metals.................................... 2,170 2,183 2,164 2,160 2,205 2,194 2,176 2,055 2,077 2,065 2,108 2,054 2,009 Machinery............................................ 4,856 4,842 4,815 4,728 4,682 4,659 4,568 4,437 4,431 4,460 4,553 4,467 4,380 Transportation equipment................ 2,766 2,749 2,684 2,696 2,691 2,655 2,624 2,652 2,671 2,595 2,707 2,675 2,662 Other fabricated metal products___ 1,982 1,965 1,898 1,882 1,854 1,813 1,761 1,718 1,731 1,726 1,745 1,716 1.716 Other durable goods........................... 2,834 2,853 2,790 2,736 2,721 2,711 2,639 2,625 2,629 2,596 2,574 2,550 2,495 Nondurable goods manufacturing: Food, liquor, and tobacco................ 2,697 2,684 2,735 2,727 2,735 2,672 2,755 2,832 2,868 2,832 2,854 2,898 2,893 Textiles, apparel, and leather........... 2,593 2,585 2,517 2,476 2,477 2,476 2,483 2,435 2,426 2,432 2,414 2,334 2,293 Petroleum refining.............................. 1,131 1,120 1,167 1,155 1,099 1,096 1,092 1,083 1,094 1,101 1,132 1,160 1,174 Chemicals and rubber........................ 2,549 2,562 2,496 2,512 2,437 2,425 2,385 2,346 2,303 2,321 2,317 2,343 2,254 Other nondurable goods................... 1,890 1,895 1,871 1,865 1,867 1,836 1,801 1,795 1,804 1,796 1,817 1,817 1,822 Mining, including crude petroleum and natural gas.................................... 3,845 3,836 3,844 3,858 3,732 3,721 3,791 3,790 3,755 3,750 3,812 3,836 3,807 Trade: Commodity dealers................... 1,205 1,234 1,313 1,343 1,389 1,438 1,495 1,511 1,566 1,652 1,692 1,690 1,676 Other wholesale......................... 4,320 4,325 4,328 4,350 4,336 4,342 4,340 4,309 4,354 4,375 4,397 4,429 4,433 Retail............................................ 4,490 4,478 4,525 4,590 4,613 4,570 4,524 4,619 4,636 4,525 4,442 4,293 4,122 Transportation, communication, & other public utilities: Transportation.................................... 5,663 5,647 5,609 5,588 5,578 5,619 5,608 5,668 5,615 5,602 5,670 5,608 5,646 Communication................................... 1,464 1,431 1,386 1,364 1,441 1,401 1,374 1,365 1,348 1,335 1,441 1,276 1.314 Other public utilities.......................... 2,557 2,517 2,572 2,640 2,770 2,773 2,704 2,681 2,752 2,705 2,650 2,748 2,726 Construction............................................ 3,731 3,759 3,783 3,777 3,825 3,812 3,810 3,772 3,760 3,749 3,806 3,778 3,817 Services...................................................... 7,515 7,535 7,582 7,590 7,601 7,630 7,674 7,647 7,685 7,696 7,782 7,845 7,874 All other domestic loans....................... 5,361 5,423 5,338 5,389 5,351 5,398 5,396 5,416 5,435 5,421 5,513 5,604 5,654 Bankers’ acceptances.............................. 1,707 1,731 1,714 1,681 1,722 1,735 1,868 1,810 1,898 1,980 2,079 2,109 2,294 Foreign commercial & industrial loans 2,969 2,967 2,973 2,949 2,924 2,930 2,946 2,979 2,979 3,078 3,112 3,178 3,225 Total classified loans.............................. 70,295 70,321 70,104 70,056 70,050 69,906 69,814 69,545 69,817 69,792 70,617 70,408 70,286 Total commercial and industrial loans. 83,194 83,242 83,063 83,003 83,091 82,933 82,854 82,562 82,875 82,927 83,853 83,674 83,770 Note.—Data for sample of about 160 banks reporting changes in their industrial loans of all weekly reporting member banks and about 60 per larger loans; these banks hold about 70 per cent of total commercial and cent of those of all commercial banks. Monthly figures are averages of figures for Wednesday dates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 110 LOAN SALES BY BANKS □ MARCH 1972 LOANS SOLD OUTRIGHT BY COMMERCIAL BANKS (Amounts outstanding; in millions of dollars) To own subsidiaries, foreign branches, holding companies, and other affiliates To all others except banks Date By type of loan By type of loan Total Total Commercial Commercial and All other and All other industrial industrial 1971 Jan. 6......................................................................................... •3,117 2,250 867 1,696 446 1,250 13......................................................................................... 3,010 2.195 815 1,673 429 1,244 20......................................................................................... 2,956 2,171 785 1,673 422 1,251 27......................................................................................... 2,887 2,118 769 1,684 424 1,260 Feb. 3......................................................................................... 3,025 2,117 908 1,675 432 1,243 10......................................................................................... 3,004 2,116 888 1,672 426 1,246 17......................................................................................... 2,910 2,076 834 1,651 420 1,231 24......................................................................................... 2,923 2,107 816 1,641 407 1,234 Mar. 3......................................................................................... 2,909 2,010 899 1,646 409 1,237 10......................................................................................... 2,860 1,998 862 1,660 414 1,246 17......................................................................................... 2,770 1,933 837 1,647 418 1,229 24......................................................................................... 2,714 1,911 803 1,657 412 1,245 31......................................................................................... 2,858 1,853 1,005 1,644 413 1 ,231 Apr. 7......................................................................................... 2,670 1,765 905 1,632 417 1 ,215 14......................................................................................... 2,580 1,696 884 1,637 416 1,221 21......................................................................................... 2,621 1,770 851 1,663 424 1,239 28......................................................................................... 2,702 1,853 849 1,660 417 1,243 May 5......................................................................................... 2,867 1,912 955 1,684 417 1 ,267 12......................................................................................... 2,774 1,861 913 1,692 420 1 ,272 19......................................................................................... 2,769 1,879 890 1,688 410 1 ,278 26......................................................................................... 2,776 1,881 895 1,733 415 1,318 2,861 1,827 1,034 1,724 414 1,310 9......................................................................................... 2,797 1,838 959 1,730 419 1,311 16......................................................................................... 2,752 1,807 945 1,737 422 1,315 23......................................................................................... 2,801 1.877 924 1,743 419 1,324 30......................................................................................... 3,058 i ;93i 1,127 1,568 436 1,132 July 7......................................................................................... 2,815 1,794 1,021 1,548 448 1,100 14......................................................................................... 2,835 1,838 997 1,569 434 1 ,135 21........................................................................................ 2,841 1,865 976 1,559 444 1,115 28......................................................................................... 2,838 1,835 1,003 1,564 435 1 ,129 Aug. 4......................................................................................... 2,803 1,878 925 1,604 470 1 .134 11......................................................................................... 2,884 1,965 919 1 ,610 450 1,160 18......................................................................................... 2,655 1,772 883 1,611 468 1,143 25........................................................................................ 2,764 1,829 935 1,608 460 1,148 Sept. 1......................................................................................... 2,998 1,849 1,149 1,601 436 1,165 8........................................................................................ 2,822 1,823 999 1,605 438 1,167 15......................................................................................... 2,818 1,819 999 1,599 425 1,174 22........................................................................................ 2,906 1,836 1,070 1,600 417 1,183 29......................................................................................... 2,960 1,896 1,064 1,598 421 1,177 Oct. 6......................................................................................... 2,884 1,799 1,085 1,588 409 1,179 13......................................................................................... 2,879 1,801 1,078 1,571 402 1,169 20......................................................................................... 2,904 1,832 1,072 1,572 393 1,179 27........................................................................................ 2,928 1,804 1,124 1,572 393 1,179 Nov. 3......................................................................................... 2,880 1,695 1,185 1,575 393 1 ,182 10......................................................................................... 2,866 1,710 1,156 1,576 391 1,185 17........................................................................................ 2,809 1,740 1,069 1,597 412 1,185 24........................................................................................ 2,845 1,757 1,088 1,596 398 1,198 Dec. 1........................................................................................ 2,934 1,723 1,211 1,592 400 1 ,192 8......................................................................................... 2,852 1,675 1,177 1,634 398 1 ,236 15........................................................................................ 2,744 1,619 1,125 1,635 395 1 ,240 22........................................................................................ 2,841 1,655 1,186 1.620 387 1,233 29........................................................................................ 2,840 1,632 1,208 1,661 378 1,283 Note.—Amounts sold under repurchase agreement are excluded. Fig­ ures include small amounts sold by banks other than large weekly report­ ing banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 112 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 John E. Sheehan Robert C. H olland, Executive Director J. Charles Partee, Adviser to the Board Robert Solom on, Adviser to the Board Howard H. H ackley, Assistant to the Board Charles M olony, Assistant to the Board Robert L. Cardon, Assistant to the Board David B. H exter, Assistant to the Board Edwin J. Johnson, Assistant to the Board Frank O’Brien, Jr. , Special Assistant to the Board Joseph R. Coyne, Special Assistant to the Board John S. Rippey, Special Assistant to the Board OFFICE OF EXECUTIVE DIRECTOR DIVISION OF RESEARCH AND STATISTICS Robert C. H olland, Executive Director J. Charles Partee, Director David C. M elnicoff, Deputy Executive Stephen H. Axilrod, Associate Director Director Samuel B. Chase, Associate Director Gordon B. Grimwood, Assistant Director and Lyle E. Gramley, Associate Director Program Director for Contingency Planning Peter M. Keir, Adviser Harry J. H alley, Program Director for Man­ James L. Pierce, Adviser agement Systems Stanley J. Sigel, Adviser W illiam W. Layton, Director of Equal Em­ M urray S. W ernick, Adviser ployment Opportunity K enneth B. W illiam s, Adviser Brenton C. Leavitt, Program Director for James B. Eckert, Associate Adviser Banking Structure Joseph S. Zeisel, Associate Adviser Edward C. Ettin, Assistant Adviser OFFICE OF THE SECRETARY Eleanor J. Stockw ell, Assistant Adviser Tynan Smith, Secretary Stephen P. Taylor, Assistant Adviser M urray Altm ann, Assistant Secretary Louis W einer, Assistant Adviser Norm and R. V. Bernard, Assistant Secretary Levon H. Garabedian, Assistant Director Arthur L. Broida, Assistant Secretary Elizabeth L. Carm ichael, Assistant DIVISION OF INTERNATIONAL FINANCE Secretary Ralph C. Bryant, Director M ichael A. Greenspan, Assistant Secretary John E. Reynolds, Associate Director Robert L. Sammons, Associate Director LEGAL DIVISION John F. L. Ghiardi, Adviser Thomas J. O’C onnell, General Counsel A. B. Hersey, Adviser Robert F. Sanders, Deputy General Counsel Reed J. Irvine, Adviser Paul Gardner, Jr. , Assistant General Counsel Samuel I. K atz, Adviser Pauline B. H eller, Adviser Bernard Norwood, Adviser Robert S. Plotkin, Adviser Ralph C. W ood, Adviser Robert F. Gemmill, Associate Adviser DIVISION OF FEDERAL RESERVE BANK Samuel Pizer, Associate Adviser OPERATIONS James A. M cIntosh, Director DIVISION OF SUPERVISION AND REGULATION John N. K iley, Jr. , Associate Director Frederic Solom on, Director W alter A. A lthausen, Assistant Director Brenton C. Leavitt, Deputy Director Donald G. Barnes, Assistant Director Frederick R. D ahl, Assistant Director Harry A. G uinter, Assistant Director Jack M. Egertson, Assistant Director P. D. Ring, Assistant Director John P. Flaherty, Assistant Director James L. Vining, Assistant Director Janet O. H art, Assistant Director Charles C. W alcutt, Assistant Director John N. Lyon, Assistant Director Lloyd M. Schaeffer, Chief Federal Reserve John T. M cClintock, Assistant Director Examiner Thomas A. Sidman, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 113 BOARD OF GOVERNORS Continued DIVISION OF PERSONNEL ADMINISTRATION OFFICE OF THE CONTROLLER Ronald G. Burke, Director John K akalec, Controller John J. H art, Assistant Director Harry J. H alley, Deputy Controller DIVISION OF DATA PROCESSING Jerold E. Slocum, Director DIVISION OF ADMINISTRATIVE SERVICES Charles L. Hampton, Associate Director G lenn L. Cummins, Assistant Director Joseph E. K elleher, Director Benjamin R. W. K nowles, Jr., W alter W. Kreimann, Deputy Director Assistant Director Donald E. Anderson, Assistant Director Henry W. M eetze, Assistant Director John D. Smith, Assistant Director Richard S. W att, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 114 FEDERAL OPEN MARKET COMMITTEE Arthur F. Burns, Chairman Alfred Hayes, Vice Chairman Andrew F. Brimmer David P. Eastburn J. L. Robertson Philip E. Coldwell Bruce K. MacLaury John E. Sheehan J. Dewey Daane Sherman J. Maisel Willis J. Winn George W. Mitchell Robert C. H olland, Secretary Robert Solomon, Economist (International Finance) Arthur L. Broida, Deputy Secretary Edward G. Boehne, Associate Economist M urray Altm ann, Assistant Secretary Ralph C. Bryant, Associate Economist Normand R. V. Bernard, Assistant Secretary Lyle E. Gramley, Associate Economist Charles M olony, Assistant Secretary Ralph T. Green, Associate Economist Howard H. H ackley, General Counsel A. B. Hersey, Associate Economist David B. H exter, Assistant General Counsel W illiam J. H octer, Associate Economist J. Charles Partee, Senior Economist John H. Kareken, Associate Economist Stephen H. Axilrod, Economist (Domestic Finance) Robert G. Link, Associate Economist A lan R. Holmes, Manager, System Open Market Account Charles A. Coombs, Special Manager, System Open Market Account FEDERAL ADVISORY COUNCIL A. W. Clausen, tw elfth federal reserve district, President G. M orris Dorrance, Jr., third federal reserve district, Vice President James F. English, first federal Gaylord Freeman, seventh federal RESERVE DISTRICT RESERVE DISTRICT David Rockefeller, second David H. M orey, eighth federal FEDERAL RESERVE DISTRICT RESERVE DISTRICT John S. Fangboner, fourth federal Chester C. Lind, 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 Lewis H. Bond, eleventh federal RESERVE DISTRICT RESERVE DISTRICT Herbert V. Prochnow, Secretary W illiam J. Korsvik, Assistant Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 115 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 Roswell L. Gilpatric Alfred Hayes Ellison L. Hazard William F. Treiber Buffalo................. ....14240 Morton Adams A. A. Maclnnes, Jr. Philadelphia ........ 19101 Bayard L. England David P. Eastburn John R. Coleman 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 Robert W. Lawson, Jr. Aubrey N. Heflin Stuart Shumate Robert P. Black Baltimore ...................21203 John H. Fetting, Jr. H. Lee Boatwright, III Charlotte....................28201 Charles W. DeBell Jimmie R. Monhollon Culpeper Communications J. Gordon Dickerson, Jr. Center....................22701 Atlanta ................. 30303 John C. Wilson Monroe Kimbrel H. G. Pattillo Kyle K. Fossum Birmingham......... 35202 E. Stanley Robbins Dan L. Hendley Jacksonville ......... 32203 Henry K. Stanford Edward C. Rainey Nashville.............. 37203 John C. Tune, Jr. Jeffrey J. Wells New Orleans......... 70160 Broadus N. Butler George H. Gaffney Miami Office......... 33101 W. M. Davis 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 Roland R. Remmel John F. Breen Louisville............. 40201 John G. Beam Donald L. Henry Memphis............... 38101 William L. Giles Laurence T. Britt Minneapolis ......... 55480 David M. Lilly Bruce K. MacLaury Bruce B. Dayton M. H. Strothman, Jr. Helena................... 59601 Warren B. Jones Howard L. Knous Kansas City........... 64198 Robert W. Wagstaff George H. Clay Willard D. Hosford, Jr. John T. Boysen Denver ................. 80217 David R. C. Brown George C. Rankin Oklahoma City 73125 Joseph H. Williams Howard W. Pritz Omaha ................. 68102 Henry Y. Kleinkauf Robert D. Hamilton Dallas................... 75222 Chas. F. Jones Philip E. Coldwell Philip G. Hoffman T. W. Plant El Paso................. 79999 Allan B, Bowman Frederic W. Reed Houston................ 77001 Geo. T. Morse, Jr. James L. Cauthen San Antonio......... 78295 Irving A. Mathews Carl H. Moore San Francisco....... 94120 O. Meredith Wilson Eliot J. Swan S. Alfred Halgren A. B. Merritt Los Angeles......... 90051 Leland D. Pratt Paul W. Cavan Portland................ 97208 John R. Howard William M. Brown Salt Lake City 84110 John R. Breckenridge Arthur L. Price Seattle................... 98124 C. Henry Bacon, Jr. William R. Sandstrom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 116 FEDERAL RESERVE BOARD PUBLICATIONS Available from Publications Services, Division of Administrative Services, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Where a charge is indicated, remittance should accompany request and be made payable to the order of the Board of Governors of the Federal Reserve System in a form collectible at par in U.S. currency. (Stamps and coupons not accepted.) ANNUAL REPORT Sec. 15. International Finance. 1962. 92 pp. $.65. Sec. 16 (New). Consumer Credit. 1965. 103 pp. $.65. FEDERAL RESERVE BULLETIN. Monthly. $6.00 INDUSTRIAL PRODUCTION—1957-59 BASE. per annum or $.60 a copy in the United States and 1962. 172 pp. $1.00 a copy; 10 or more sent to one ad­ its possessions, Bolivia, Canada, Chile, Colombia, dress, $.85 each. Costa Rica, Cuba, Dominican Republic, Ecuador, Guatemala, Haiti, Republic of Honduras, Mexico, BANK MERGERS & THE REGULATORY AGEN­ Nicaragua, Panama, Paraguay, Peru, El Salvador, CIES: APPLICATION OF THE BANK MERGER Uruguay, and Venezuela; 10 or more of same ACT OF 1960. 1964. 260 pp. $1.00 a copy; 10 or issue sent to one address, $5.00 per annum or $.50 more sent to one address, $.85 each. each. Elsewhere, $7.00 per annum or $.70 a copy. BANKING MARKET STRUCTURE & PERFORM­ FEDERAL RESERVE CHART BOOK ON FI­ ANCE IN METROPOLITAN AREAS: A STATIS­ NANCIAL AND BUSINESS STATISTICS. Month­ TICAL STUDY OF FACTORS AFFECTING ly. Annual subscription includes one issue of His­ RATES ON BANK LOANS. 1965. 73 pp. $.50 a torical Chart Book. $6.00 per annum or $.60 a copy copy; 10 or more sent to one address, $.40 each. in the United States and the countries listed above; 10 or more of same issue sent to one address, $5.00 THE PERFORMANCE OF BANK HOLDING COM­ per annum or $.50 each. Elsewhere, $7.00 per an­ PANIES. 1967. 29 pp. $.25 a copy; 10 or more sent num or $.70 a copy. to one address, $.20 each. FARM DEBT. Data from the 1960 Sample Survey of HISTORICAL CHART BOOK. Issued annually in Agriculture. 1964. 221 pp. $1.00 a copy; 10 or more Sept. Subscription to monthly chart book includes sent to one address, $.85 each. one issue. $.60 a copy in the United States and countries listed above; 10 or more sent to one ad­ MERCHANT AND DEALER CREDIT IN AGRICUL­ dress, $.50 each. Elsewhere, $.70 a copy. TURE. 1966. 109 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. THE FEDERAL RESERVE ACT, as amended through Nov. 5, 1966, with an appendix containing pro­ THE FEDERAL FUNDS MARKET. 1959. Ill pp. visions of certain other statutes affecting the Federal $1.00 a copy; 10 or more sent to one address, $.85 Reserve System. 353 pp. $1.25. each. REGULATIONS OF THE BOARD OF GOVER­ TRADING IN FEDERAL FUNDS. 1965. 116 pp. NORS OF THE FEDERAL RESERVE SYSTEM. $1.00 a copy; 10 or more sent to one address, $.85 each. PUBLISHED INTERPRETATIONS OFTHE BOARD OF GOVERNORS, as of Dec. 31, 1970. $2.50. U.S. TREASURY ADVANCE REFUNDING, JUNE 1960-JULY 1964. 1966. 65 pp. $.50 a copy; 10 or FLOW OF FUNDS IN THE UNITED STATES, more sent to one address, $.40 each. 1939-53. 1955. 390 pp. $2.75. BANK CREDIT-CARD AND CHECK-CREDIT DEBITS AND CLEARING STATISTICS AND THEIR PLANS. 1968. 102 pp. $1.00acopy; lOor more sent USE. 1959. 144 pp. $1.00 a copy; 10 or more sent to one address, $.85 each. to one address, $.85 each. INTEREST RATE EXPECTATIONS: TESTS ON SUPPLEMENT TO BANKING AND MONETARY YIELD SPREADS AMONG SHORT-TERM GOV­ STATISTICS. Sec. 1. Banks and the Monetary Sys­ ERNMENT SECURITIES. 1968. 83 pp. $.50 a tem. 1962. 35 pp. $.35. Sec. 2. Member Banks. 1967. copy; 10 or more sent to one address, $.40 each. 59 pp. $.50. Sec. 5. Bank Debits. 1966. 36 pp. $.35. SURVEY OF FINANCIAL CHARACTERISTICS OF Sec. 6. Bank Income. 1966. 29 pp. $.35. Sec. 9. CONSUMERS. 1966. 166 pp. $1.00 a copy; 10 or Federal Reserve Banks. 1965. 36 pp. $.35. Sec. 10. more sent to one address, $.85 each. Member Bank Reserves and Related Items. 1962. 64 pp. $.50. Sec. 11. Currency. 1963. 11 pp. $.35. SURVEY OF CHANGES IN FAMILY FINANCES. Sec. 12. Money Rates and Securities Markets. 1966. 1968. 321 pp. $1.00 a copy; 10 or more sent to one 182 pp. $.65. Sec. 14. Gold. 1962. 24 pp. $.35. address, $.85 each. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 117 REPORT OF THE JOINT TREASURY-FEDERAL OPTIMAL CHOICE OF MONETARY POLICY IN­ RESERVE STUDY OF THE U.S. GOVERNMENT STRUMENTS IN A SIMPLE STOCHASTIC SECURITIES MARKET. 1969. 48 pp. $.25 a copy; MACRO MODEL, by William Poole. Sept. 1970. 20 10 or more sent to one address, $.20. pp. JOINT TREASURY-FEDERAL RESERVE STUDY UNCERTAINTY AND STABILIZATION POLICIES OF THE GOVERNMENT SECURITIES MARKET FOR A NONLINEAR MACROECONOMIC —STAFF STUDIES: MODEL, by Franklin R. Shupp. Dec. 1970. 23 pp. Part 1 (papers by Cooper, Bernard, and Scherer). OPERATING POLICIES OF BANK HOLDING 1970. 86 pp. $.50 a copy; 10 or more sent to one ad­ COMPANIES—PART 1, by Robert J. Lawrence. dress, $.40 each. Apr. 1971,82 pp. Part 2 (papers by Ettin, Peskin, and Ahearn and Peskin). 1971. 153 pp. $1.00 a copy; 10 or more sent THE RELATIVE IMPORTANCE OF MONETARY to one address, $.85 each. AND FISCAL VARIABLES IN DETERMINING (Single copies, in mimeographed or similar form, PRICE LEVEL MOVEMENTS: A NOTE, by Peter available upon request from limited supply of staff S. Rose and Lacy H. Hunt II. June 1971. 7 pp. papers other than those in Parts 1 and 2. See p. 48 of ESTIMATION OF THE INVESTMENT AND PRICE main report for a list of such papers.) EQUATIONS OF A MACROECONOMETRIC MODEL, by Robert J. Shiller. June 1971. 65 pp. OPEN MARKET POLICIES AND OPERATING PROCEDURES—STAFF STUDIES (papers by ADJUSTMENT AND DISEQUILIBRIUM COSTS Axilrod, Davis, Andersen, Kareken et al, Pierce, AND THE ESTIMATED BRAINARD-TOBIN Friedman, and Poole). 1971. 218 pp. $2.00 a copy; MODEL, by Joseph Bisignano. July 1971. 108 pp. 10 or more sent to one address, $1.75 each. A TEST OF THE “EXPECTATIONS HYPOTHESIS” REAPPRAISAL OF THE FEDERAL RESERVE USING DIRECTLY OBSERVED WAGE AND DISCOUNT MECHANISM: PRICE EXPECTATIONS, by Stephen J. Turnovsky Vol. 1 (papers by Steering Committee, Shull, An­ and Michael L. Wachter. Aug. 1971. 25 pp. derson, and Garvy). 1971. 276 pp. MORTGAGE REPAYMENTS AS A SOURCE OF Vol. 2 (papers by Boulding, Chandler, Jones, LOANABLE FUNDS, by Robert Moore Fisher. Ormsby, Modigliani, Alperstein, Melichar, and Aug. 1971. 43 pp. Melichar and Doll). 1971. 173 pp. Price of each THE USE OF INTEREST RATE POLICIES AS A volume, $3.00 a copy; 10 or more sent to one address, STIMULUS TO ECONOMIC GROWTH, by Robert $2.50 each. F. Emery. Sept. 1971. 37 pp. Single copies, in mimeographed or similar form, available upon request from limited supply of the PRIVATE HOUSING COMPLETIONS—A NEW following papers relating to the Discount Study: DIMENSION IN CONSTRUCTION STATISTICS, by Bernard N. Freedman. Jan. 1972. 20 pp. RESERVE ADJUSTMENTS OF THE EIGHT MA­ POLICY VARIABLES, UNEMPLOYMENT AND JOR NEW YORK CITY BANKS DURING 1966. PRICE LEVEL CHANGES, by Peter S. Rose and 1968.29 pp. Lacy H. Hunt II. Jan. 1972. 11 pp. DISCOUNT POLICY AND BANK SUPERVI­ SION. 1968.72pp. OPTIMAL DISTRIBUTED LAG RESPONSES AND EXPECTATIONS, by Roger Craine. Feb. 1972. 9 pp. ACADEMIC VIEWS ON IMPROVING THE FED­ ERAL RESERVE DISCOUNT MECHANISM. THE EFFECT OF HOLDING COMPANY ACQUISI­ 1970. 172 pp. TIONS ON BANK PERFORMANCE, by Samuel H. Talley. Feb. 1972. 25 pp. STAFF ECONOMIC STUDIES INTERNATIONAL MONEY MARKETS AND FLEX­ Studies and papers on economic and financial subjects IBLE EXCHANGE RATES, by Stanley W. Black. that are of general interest in the field of economic Mar. 1972. 2 pp. research. REPRINTS Summaries only printed in the Bulletin. (Single copies of full text available, in mimeographed Printed in full in the Bulletin. form, upon request from limited supply.) (Reprints available as shown in following list.) MEASURES OF INDUSTRIAL PRODUCTION AND FINAL DEMAND, by Clayton Gehman and Cor­ ADJUSTMENT FOR SEASONAL VARIATION. June nelia Motheral. Jan. 1967. 57 pp. 1941. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 118 FEDERAL RESERVE BULLETIN □ FEBRUARY 1972 SEASONAL FACTORS AFFECTING BANK RE­ THE FEDERAL RESERVE-MIT ECONOMETRIC SERVES. Feb. 1958. 12 pp. MODEL, Staff Economic Study by Frank de Leeuw and Edward Gramlich. Jan. 1968. 30 pp. LIQUIDITY AND PUBLIC POLICY, Staff Paper by Stephen H. Axilrod. Oct. 1961. 17 pp. U.S. INTERNATIONAL TRANSACTIONS: TRENDS IN 1960-67. Apr. 1968. 23 pp. SEASONALLY ADJUSTED SERIES FOR BANK CREDIT. July 1962. 6 pp. MONETARY RESTRAINT AND BORROWING AND CAPITAL SPENDING BY LARGE STATE AND INTEREST RATES AND MONETARY POLICY, LOCAL GOVERNMENTS IN 1966. July 1968. Staff Paper by Stephen Axilrod. Sept. 1962. 28 pp. 30 pp. MEASURES OF MEMBER BANK RESERVES. FEDERAL FISCAL POLICY IN THE 1960’s. Sept. July 1963. 14 pp. 1968. 18 pp. BUSINESS FINANCING BY BUSINESS FINANCE CHANGES IN BANKING STRUCTURE, 1953-62. COMPANIES. Oct. 1968. 13 pp. Sept. 1963. 8 pp. MANUFACTURING CAPACITY: A COMPARISON REVISION OF BANK DEBITS AND DEPOSIT OF TWO SOURCES OF INFORMATION, Staff TURNOVER SERIES. Mar. 1965. 4 pp. Economic Study by Jared J. Enzler. Nov. 1968. 5 pp. TIME DEPOSITS IN MONETARY ANALYSIS, Staff MONETARY RESTRAINT, BORROWING, AND Economic Study by Lyle E. Gramley and Samuel B. CAPITAL SPENDING BY SMALL LOCAL GOV­ Chase, Jr. Oct. 1965. 25 pp. ERNMENTS AND STATE COLLEGES IN 1966. Dec. 1968. 30 pp. RESEARCH ON BANKING STRUCTURE AND PERFORMANCE, Staff Economic Study by Tynan REVISION OF CONSUMER CREDIT STATISTICS. Smith. Apr. 1966. 11 pp. Dec. 1968. 21 pp. COMMERCIAL BANK LIQUIDITY, Staff Economic HOUSING PRODUCTION AND FINANCE. Mar. Study by James Pierce. Aug. 1966. 9 pp. 1969. 7 pp. A REVISED INDEX OF MANUFACTURING CA­ OUR PROBLEM OF INFLATION. June 1969. 15 pp. PACITY, Staff Economic Study by Frank de Leeuw THE CHANNELS OF MONETARY POLICY, Staff with Frank E. Hopkins and Michael D. Sherman. Economic Study by Frank de Leeuw and Edward Nov. 1966. 11 pp. Gramlich. June 1969. 20 pp. THE ROLE OF FINANCIAL INTERMEDIARIES IN REVISION OF WEEKLY SERIES FOR COMMER­ U.S. CAPITAL MARKETS, Staff Economic Study CIAL BANKS. Aug. 1969. 5 pp. by Daniel H. Brill with Ann P. Ulrey. Jan. 1967. 14 pp. EURO-DOLLARS: A CHANGING MARKET. Oct. 1969. 20 pp. REVISED SERIES ON COMMERCIAL AND IN­ DUSTRIAL LOANS BY INDUSTRY. Feb. 1967. RECENT CHANGES IN STRUCTURE OF COM­ 2 pp. MERCIAL BANKING. Mar. 1970. 16 pp. AUTO LOAN CHARACTERISTICS AT MAJOR SDR’s IN FEDERAL RESERVE OPERATIONS SALES FINANCE COMPANIES. Feb. 1967. 5 pp. AND STATISTICS. May 1970. 4 pp. SURVEY OF FINANCE COMPANIES, MID-1965. INFLATION IN WESTERN EUROPE AND JAPAN. Apr. 1967. 26 pp. Oct. 1970. 13 pp. EVIDENCE ON CONCENTRATION IN BANKING MEASURES OF SECURITY CREDIT. Dec. 1970. MARKETS AND INTEREST RATES, Staff Eco­ 11pp. nomic Study by Almarin Phillips. June 1967. 11 pp. MONETARY AGGREGATES AND MONEY MAR­ NEW BENCHMARK PRODUCTION MEASURES, KET CONDITIONS IN OPEN MARKET POLICY. 1958 AND 1963. June 1967. 4 pp. Feb. 1971. 26 pp. THE PUBLIC INFORMATION ACT—ITS EFFECT BANK FINANCING OF MOBILE HOMES. Mar. 1971. ON MEMBER BANKS. July 1967. 6 pp. 4 pp. INTEREST COST EFFECTS OF COMMERCIAL RESPONSE OF STATE AND LOCAL GOVERN­ BANK UNDERWRITING OF MUNICIPAL REVE­ MENTS TO VARYING CREDIT CONDITIONS. NUE BONDS. Aug. 1967. 16 pp. Mar. 1971.24 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

FEDERAL RESERVE BOARD PUBLICATIONS A 119 CHANGES IN BANK LENDING PRACTICES, 1970. REVISION OF THE MONEY STOCK. Nov. 1971. Apr. 1971. 5 pp. 14 pp. U.S. BALANCE OF PAYMENTS AND INVEST­ BALANCE OF PAYMENTS PROGRAM: REVISED MENT POSITION. Apr. 1971. 14 pp. GUIDELINES FOR BANKS AND NONBANK FINANCIAL INSTITUTIONS. Nov. 1971. 11pp. INTEREST RATES, CREDIT FLOWS, AND MONE­ TARY AGGREGATES SINCE 1964. June 1971. REVISION OF BANK CREDIT SERIES. Dec. 1971. 16 pp. 5 pp. PLANNED AND ACTUAL LONG-TERM BORROW­ TWO KEY ISSUES OF MONETARY POLICY. June ING BY STATE & LOCAL GOVERNMENTS. 1971. 4 pp. Dec. 1971. 11 pp. SURVEY OF DEMAND DEPOSIT OWNERSHIP. CHANGES IN TIME AND SAVINGS DEPOSITS, June 1971. 12 pp. JULY-OCTOBER 1971. Jan. 1972. 14 pp. FINANCIAL DEVELOPMENTS IN THE FOURTH BANK RATES ON BUSINESS LOANS—REVISED QUARTER OF 1971. Feb. 1972. 9 pp. SERIES. June 1971. 10 pp. ASSETS AND LIABILITIES OF FOREIGN INDUSTRIAL PRODUCTION—REVISED AND BRANCHES OF U.S. BANKS. Feb. 1972. 16 pp. NEW MEASURES. July 1971. 26 pp. BANKING AND MONETARY STATISTICS, 1970. TREASURY-FEDERAL RESERVE FOREIGN EX­ Selected series of banking and monetary statistics for CHANGE OPERATIONS. Mar. 1972. 29 pp. 1970 only. Feb., Mar., and July 1971. 19 pp. WAYS TO MODERATE FLUCTUATIONS IN THE REVISED MEASURES OF MANUFACTURING CONSTRUCTION OF HOUSING. Mar. 1972. CAPACITY UTILIZATION. Oct. 1971. 3 pp. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

)xedni siht n i dettimo si ” A“ xiferp eht hguohtla 011-A hguorht 4-A segap o t era secnerefeR( A 120 FEDERAL RESERVE BULLETIN □ MARCH 1972 INDEX TO STATISTICAL TABLES (For list of tables published periodically, but not monthly, see page A-3) Acceptances, bankers’, 14, 33, 35 Demand deposits: Agricultural loans of commercial banks, 24, 26, 102 Adjusted, banks and the monetary system, 19 Arbitrage, 95 Adjusted, commercial banks, 15,18,25 Assets and liabilities (See also Foreigners): Banks, by classes, 11,20,25,29,39,105 Banks, by classes, 20,24,25,26,39,102 Ownership by individuals, partnerships, and Banks and the monetary system, 19 corporations, 32 Corporate, current, 51 Subject to reserve requirements, 18 Federal Reserve Banks, 12 Turnover, 15 Automobiles: Deposits (See also specific types of deposits): Consumer instalment credit, 56, 57, 58 Accumulated at commercial banks for payment of personal Production index, 60, 61 loans, 32 Adjusted, and currency, 19 Banks, by classes, 11, 20, 25, 29, 39,105 Bank credit proxy, 18 Euro-dollars, 90 Bankers’ balances, 25, 28, 104 Federal Reserve Banks, 12, 90 (See also Foreigners, claims on, and liabilities to) Postal savings, 19, 25 Subject to reserve requirements, 18 Banking and monetary statistics for 1971,98-110 Discount rates (See Interest rates) Banks and the monetary system, 19 Discounts and advances by Reserve Banks (See Loans) Banks for cooperatives, 40 Dividends, corporate, 50, 51 Bonds (See also U.S. Govt, securities): Dollar assets, foreign, 77,83 New issues, 47, 48, 49 Yields and prices, 36, 37 Branch banks: Earnings and hours, manufacturing industries, 67 Assets of foreign branches of U.S. banks, 88 Employment, 64,66,67 Liabilities of U.S. banks to foreign branches, 30, 90, 106 Euro-dollar deposits in foreign branches of U.S. banks, 90 Brokerage balances, 87 Business expenditures on new plant and equipment, 51 Business indexes, 64 Farm mortgage loans, 52, 53 Business loans (See Commercial and industrial loans) Federal agency obligations, 12, 13, 14, 15 Federal finance: Cash transactions, 42 Capacity utilization, 64 Receipts and expenditures, 43 Capital accounts: Treasury operating balance, 42 Federal funds, 8,24,26,30,35,102,106 Banks, by classes, 20,25, 30,106 Federal home loan banks, 40, 41, 53 Federal Reserve Banks, 12 Federal Housing Administration, 52, 53, 54, 55 Central banks, 94,96 Federal intermediate credit banks, 40, 41 Certificates of deposit, 30,106 Federal land banks, 40, 41 Coins, circulation, 16 Federal National Mortgage Assn., 40, 41, 55 Commercial and industrial loans: Federal Reserve Banks: Commercial banks, 24,33,107,110 Condition statement, 12 Weekly reporting banks, 26, 31, 102 U.S. Govt, securities held, 4,12,15,44,45,98 Commercial banks: Federal Reserve credit, 4,6,12,15,98,100 Assets and liabilities, 20,24,25,26,102 Federal Reserve notes, 12,16 Consumer loans held, by type, 57 Federally sponsored credit agencies, 40, 41 Deposits at, for payment of personal loans, 32 Loans sold outright, 33, 110 Finance companies: Loans, 26, 56, 57, 59 Number, by classes, 20 Paper, 33, 35 Real estate mortgages held, by type, 52 Financial institutions, loans to, 24,26,102 Commercial paper, 33,35 Float, 4, 98 Condition statements (See Assets and liabilities) Flow of funds, 72 Construction, 64, 65 Foreign: Consumer credit: Currency operations, 12, 14, 77, 83 Instalment credit, 56, 57, 58, 59 Deposits in U.S. banks, 5,12,19,25,29,90,99,10:5 Noninstalment credit, by holder, 57 Exchange rates, 93 Consumer price indexes, 64, 68 Trade,75 Consumption expenditures, 70, 71 Foreigners: Corporations: Claims on, 84,85,90,91,92 Sales, profits, taxes, and dividends, 50, 51 Liabilities to, 30,78,79,81,82,83,90,91,92,106 Security issues, 48, 49 Security yields and prices, 36,37 Cost of living (See Consumer price indexes) Gold: Currency and coin, 5, 10, 25, 99 Certificates, 12, 13, 16 Currency in circulation, 5, 16, 17, 99 Earmarked, 90 Customer credit, stock market, 38 Net purchases by U.S., 76 Production, 97 Debits to deposit accounts, 15 Reserves of central banks and govts., 96 Debt (See specific types of debt or securities) Stock, 4,19,77,98 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A 121 Government National Mortgage Association, 55 Prime rate, commercial banks, 34 Gross national product, 70, 71 Production, 60-63, 64 Profits, corporate, 50, 51 Hours and earnings, manufacturing industries, 67 Housing permits, 64 Real estate loans: Housing starts, 65 Banks, by classes, 24,27,39,52,103 Delinquency rates on home mortgages, 54 Income, national and personal, 70, 71 Mortgage yields, 55 Industrial production index, 60-63, 64 Type of holder and property mortgaged, 52, 53, 54, 55 Instalment loans, 56, 57, 58, 59 Reserve position, basic, member banks, 8 Insurance companies, 39, 44, 45, 53 Reserve requirements, member banks, 10 Insured commercial banks, 22,24,32 Reserves: Interbank deposits, 11, 20, 25 Central banks and govts., 96 Interest rates: Commercial banks, 25, 28, 30,104,106 Business loans by banks, 34 Federal Reserve Banks, 12 Federal Reserve Banks, 9 Member banks, 5,6, 11, 18, 25, 99, 100 Foreign countries, 94,95 U.S. reserve assets, 77 Money market rates, 35 Residential mortgage loans, 37, 52, 53, 54 Mortgage yields, 55 Retail credit, 56 Prime rate, commercial banks, 34 Retail sales, 64 Time and savings deposits, maximum rates, 11 Yields, bond and stock, 36 Saving: International capital transactions of the U. S., 78-92 Flow of funds series, 72 International institutions, 76,77,94,96 National income series, 71 Inventories, 70 Savings and loan assns., 40,45,53 Investment companies, issues and assets, 49 Savings deposits (See Time deposits) Investments (See also specific types of investments): Savings institutions, principal assets, 39, 40 Banks, by classes, 20, 24, 27, 28, 39,103,104 Securities (See also U.S. Govt, securities): Commercial banks, 18 Federally sponsored agencies, 40,41 Federal Reserve Banks, 12, 15 International transactions, 86, 87 Life insurance companies, 39 New issues, 47, 48, 49 Savings and loan assns., 40 Silver coin and silver certificates, 16 Special Drawing Rights, 4, 12, 13, 19, 74, 77 Labor force, 66 State and local govts.: Loans {See also specific types of loans): Deposits, 25,29,105 Banks, by classes, 20, 24, 26, 27, 39, 102, 103 Holdings of U.S. Govt, securities, 44, 45 Commercial banks, 18, 20, 24, 26, 27, 31, 33, 34, 102, New security issues, 47, 48 103, 107, 110 Ownership of securities of, 24, 28, 39, 104 Federal Reserve Banks, 4, 6, 9,12,13,15,98,100 Yields and prices of securities, 36,37 Insurance companies, 39, 53 State member banks, 22,32 Insured or guaranteed by U.S., 52, 53,54,55 Stock market credit, 38 Savings and loan assns., 40, 53 Stocks: New issues, 48, 49 Manufacturers: Yields and prices, 36,37 Capacity utilization, 64 Production index, 61,64 Tax receipts, Federal, 43 Margin requirements, 10 Time deposits, 11,18,19,20,25,29,105 Member banks: Treasury cash, Treasury currency, 4, 5,16,19,98,99 Assets and liabilities, by classes, 20,24 Treasury deposits, 5, 12, 42, 99 Borrowings at Reserve Banks, 6, 12, 100 Treasury operating balance, 42 Deposits, by classes, 11 Number, by classes, 20 Unemployment, 66 Reserve position, basic, 8 U.S. balance of payments, 74 Reserve requirements, 10 U.S. Govt, balances: Reserves and related items, 4, 18, 98 Commercial bank holdings, 25,29,105 Mining, production index, 61, 64 Consolidated condition statement, 19 Mobile home shipments, 65 Member bank holdings, 18 Money rates (See Interest rates) Treasury deposits at Reserve Banks, 5,12,42,99 Money stock and related data, 17,19 U.S. Govt, securities: Mortgages (See Real estate loans and Residential mortgage Bank holdings, 19, 20, 24, 27, 39, 44, 45, 103 loans) Dealer transactions, positions, and financing, 46 Mutual funds (See Investment companies) Federal Reserve Bank holdings, 4,12,15,44,45,98 Mutual savings banks, 19,29,39,44,45,52,105 Foreign and international holdings, 12,83, 86,90 International transactions, 83, 86 National banks, 22, 32 New issues, gross proceeds, 48 National income, 70, 71 Open market transactions, 14 National security expenditures, 43, 70 Outstanding, by type of security, 44, 45, 47 Nonmember banks, 22, 24, 25, 32 Ownership of, 44, 45 Yields and prices, 36, 37 Open market transactions, 14 United States notes, 16 Utilities, production index, 61, 63, 64 Payrolls, manufacturing index, 64 Personal income, 71 Veterans Administration, 52, 53, 54, 55 Postal savings, 19, 25 Prices: Weekly reporting banks, 26,102 Consumer and wholesale commodity, 64, 68 Security, 37 Yields (See Interest rates) )xedni siht n i dettimo si ” A“ xiferp eht hguohtla 011-A hguorht 4-A segap o t era secnerefeR( Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

BOUNDARIES OF FEDERAL RESERVE DISTRICTS AND THEIR BRANCH TERRITORIES Minneapolis^, C hicago j Omafia.* XfuirCotU XasfiviCU Oklahoma. Cittf ittCe $pc&\ Dallas Jiaustcm Miami January 1972 "Dram byHW. Qafvin,Cart bi "S|_' -^li ">i. ^ A (o THE FEDERAL RESERVE SYSTEM g) ☆ HAWAII Legend Boundaries of Federal Reserve Districts -----Boundaries of Federal Reserve Branch Territories © Board of Governors of the Federal Reserve System 0 Federal Reserve Bank Cities • Federal Reserve Branch Cities Digitized for FRASER • Federal Reserve Bank Facilities http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis